Training Employees in Samsung Essay Example | Topics and Well Written Essays - 1500 words

Training Employees in Samsung - Essay Example 1. To identify the most appropriate training programme for Samsung 2. To recognize the effect of training in the company 3. To evaluate the shortfall or loopholes in the training programs in the company 1.2 Research Question The research question has been designed to identify the responses regarding the issues raised as the research objective. Question: What should be the framework or structure of training in Samsung for developing the skills of the employees? 1.3 Rational of the Study The reason behind choosing Samsung with regards to effective training methods is because it is one of the leading companies not only in Asian but also in the global market. This signifies that Samsung requires enhancing the skills of its employees and nurturing their knowledge base in order to always remain in a competitive position in the world market. However, to fulfil this objective the company needs to provide extensive training to its employees. Training is the tool not only to enhance the skill levels of the employees, but also to welcome their ideas and utilise them to develop innovative products that would reduce shortage of products, maintain goodwill and increase profit margin of the company. II: LITERATURE REVIEW 2.1 Introduction Human Resource Management (HRM) involves management of the workforce. It also includes selecting, training, mentoring and rewarding the employees. HRM comprise motivating the leadership qualities of the individuals in the organisation and maintaining a fair and healthy work culture. HRM is an important activity in every organisation and its impact on the organisations has been supported by numerous theories and approaches. It plays a significant role in the achievement of the company by incorporating the interest of the organisation and the human resource (Randhawa, 2007, Dransfield, 2000). In HRM, training and development is meant to boost the performance of the workforce. The employees are put through a learning process that would assist th em to acquire valuable knowledge, help them to improve their skills, rules, and concepts, by changing their attitude and their behaviour to work in the organisation. It is also called human resource development, learning and development or training and development (Rao, 2009, Talwar, 2006). In HRM there are various different aspects, but this study aims at evaluating only training and development function of HRM and its significance in the organisation. The motive is mainly to study the magnitude of training the various theories which different authors have stated to explain them. This will assist in capturing different point of view regarding training and development in the organisation. In this study the focus would be towards the training and development of the employees of Samsung because this company has skilfully managed its operations around the world and has become a global leader, off course not without training its employees well. However, in the present volatile market pa st training strategies are not going to impact, so an analysis of different training methods will assist in identifying the most appropriate training method for Samsung’ employees. 2.2 Importance of Training Training assists in improving the knowledge and prepares the employees for new upcoming challenges. It is very important to train the employees to compete in the global challenges. Previously the training and development processes were criticized because of the lack of proper evaluation process (Mathison, 2004). The yearly fixed targets were set for training and it was delivered accordingly, but none of them bothered to evaluate the results. So neither the positive effect of training was revealed nor was the negative aspects scrutinized and changed. No feedback system was there to take the

Management of Information Systems Essay Example | Topics and Well Written Essays - 1000 words

Management of Information Systems - Essay Example 2. B2B systems can be operated in accordance within the budgetary constraints of the businesses, which may vary from being substantial, little or even minimal (Linthicum 36). Hence, B2B systems are extremely flexible and can adapt to varied resource allocations. 2. B2B systems being technology dependent are highly vulnerable to technology constraints. Thus, technical problems may jeopardize a BTB e-commerce system, which may directly translate into a loss of the potential customers (Linthicum 41). 1. The customers can shop and at any time, in the convenience of their own premises, without having to resort to the botheration of moving out and exerting themselves. In that context, B2B systems qualify to be called 24-hour shops. 3. B2B commerce systems tend to be the ultimate hassle free venues, un-necessitating all the exertion of haggling with salespersons, moving from one shop to other and other such related inconveniences. 1. Security is the primary concern why customers tend to avoid B2B e-commerce systems (Linthicum 16). Such systems are many times vulnerable to data theft, thereby leading to swindles, frauds, scams and financial losses. 2. B2B e-commerce systems not backed by efficient after sales and customer services leave the customers unsatisfied and worried. Customers often find it hard to get the required information and help in a prompt and efficient manner. A B2B e-commerce system can avoid the usual and specific problems and can immensely improve itself to face challenges by recognizing and well managing the Critical Success Factors (CSF) (Aggestam & Soderstrom 102). Thus, any possible strategy for improvement should not only identify and prioritize the associated Critical Success Factors (CSF), but should look to it that the identified factors tend to be few and manageable. Such an approach brings in an element of organization and orderliness in the overall task of system management, but also helps avoiding the allocation of scarce resources to ignorable and less crucial problems.The lessons learned from the failed projects can prove to be a rich source of necessary

Amazons Distribution Strategy

Amazons Distribution Strategy Introduction While taking a decision on the design of supply chain, companies should focus on its strategy, decision on operations and most importantly, proper planning. In a company, based on the needs of the customer and design of the systems, flow of supply chain management varies. While designing, reviewing constantly at different stages also helps companies differentiate various processes in their supply chain. Amazon.com is an e-commerce company with its presence worldwide and headquartered in Seattle, United States. Amazon.com, in its early days dealt only with Books but later on it diversified into a lot of other product lines like Video Games, Electronics, Toys, Jewellery, Furniture, MP#s, DVDs among other products. Today they are a huge $75 billion organization with a very diverse product portfolio and successful operations round the globe. The new Kindle Fire Tablet computer is one of their latest notable product and their Cloud Computing business is one of the industry leaders. Going by the revenue, growth and market capitalization, Amazon is the 4th most successful start-up of all times. Jeff Bezos started this amazing company in 1994 with the intention of â€Å"Get Big Fast†. This strategy was a brilliant one for the company in US as they were able to function with a competitive lead time for delivery after the orders were placed. Now this strategy was also put in place for the expansion in Europe. Not only were the European markets culturally different from US but also the market conditions and the consumer behaviour expectations different from a consumer in US. The challenges here were very dissimilar to the operational challenges in US in terms of transportation, stocking and distribution. The report will look into the challenges that Amazon faced in Europe and the operational/supply chain decisions they had make to overcome those challenges, also, â€Å"How has globalization made strategic fit even more important to company’s success†. The recommendations/ analysis are based on the concept of centralization of the distribution across a full continent and the concepts taught in the class. AMAZON US â€Å"Earth’s Biggest Bookstore† Amazon used the Internet to change the business of buying books into a very fast, easy and enjoyable shopping experience. Amazon has more than 2.5 million different book titles in its kitty and is very rightly called the â€Å"Earth’s Biggest Bookstore†. From the very beginning, Amazon always kept the wholesalers and the publishers on their side which thereby allowed them to keep a very truncated inventory and low inventory holding costs. These tie-ups with wholesalers and publishing houses not only allowed Amazon to reduce costs on warehousing but also get huge bulk discounts, for example From a publishing house Amazon used to get a discount of approximately 48% and around 41% from the wholesalers) Amazon had a general lead time for delivery of 4 to 7 business days across the whole country of United States. Amazon developed its infrastructure hugely in the late 90’s and eventually launched their Music and Video businesses also. The idea was to â€Å"Get Big Fast† through diversification and geographic expansion by having more distribution centres in their business geography. Some would say that the expansion of Amazon was the fastest expansion experienced by any company for its distribution capacity. Expanding and making distribution was the first step, next step was to figure out which distribution centre will carry which all products, given the fact that Amazon not only expanded in distribution capacity across geographies but also in terms of the product lines in its product portfolio. The 3 aspects of deciding the products to be carried by a distribution centre are: Amazon employed a lot of systems to enhance their operation efficiency. The ones which were the most impressive and successful are: Pick-To-Light System Radio Frequency Technology Voice Technology Pick Profiles Amazon Standard Identifying Number (ASIN) Performance measuring key metrics As Jeff Wilke, the Vice President of Operations at Amazon said about what Amazon had, Amazon quickly adapted to the Six Sigma DMAIC reviews as a tool to reduce variations and defects in its distribution centres. Jeff Wilke’s team followed 5 strategies to improve inventory management Better forecasting of customer demand by improving the ability of the software by refining it to the tune of better anticipation of the demands, both seasonal and regional. This made sure that risk of buying either too much or too less was reduced. Better relations with the wholesalers and direct vendors to cater to any sudden surge in demand for any particular bestselling book title. This was also used to get some needed momentum for the slow velocity titles. Available-to-Promise Functionality: Amazon integrated the supply chain management systems of its suppliers with its own thereby getting a synergy in the process. Now amazon was able to tell its customers the exact time frame in which it could deliver the products to them. For example, if a product is available with the Amazon distribution centre themselves, then the lead time for the delivery of the product was within 24 hours. But if the product was not available with the Amazon DC then the lead time for delivery increased to 2 – 3 business days. This allowed Amazon to have the information about the inventory of the suppliers at all times at the very item level. Cascading Buying Rules: These rules by Amazon determined which supplier was the best fit for which product in terms of the price and the options for delivery such that if the item is not available with the supplier giving the best price then the next supplier in cascade will be selected for the delivery. Drop Ship Orders: Amazon took some time to adopt this strategy which they should have adopted in the very beginning. According to Drop Ship strategy, whenever the customer orders an item and the distribution centre of Amazon does not have the product then Amazon places the order on its supplier. Then instead of the supplier shipping the item to Amazon DC and then the Amazon DC shipping the item to the customer, the supplier directly ships the item to the customer, thereby drastically decreasing the lead time for delivery by removing the unnecessary steps of the supply chain products. In addition to the above mentioned processes and strategies, Amazon also used method called â€Å"Postal Injection† or â€Å"Zone Skipping†. In this method, the fully loaded truck from the distribution centre directly goes to the major cities, easily bypassing the postal service’s sorting hubs where the delivery packets are sorted according to the respective cities and states. AMAZON EUROPE The initial targets for Amazon were UK and Germany, primarily because both these countries were the prime markets for book selling and online purchasing in the continent of Europe. Germany had an excess of 2000 publishing houses and UK had an excess of 3000 publishing houses. Amazon made an acquisition in Europe by acquiring Bookpages and TeleBuch in UK and Germany respectively. Again, in line with the idea followed in US, Amazon Europe wanted to â€Å"Get Big Fast†. Both the UK Amazon.co.uk and German Amazon.de increased their product portfolios by integrating the music and video businesses along with the books business at the very offset of the culmination of the respective expansions in the two countries. Even though the competition from the online bookstores of the respective countries was fierce, Amazon was successful in becoming the market leader in both the countries. The combined sales of the 2 countries crossed the 10% of the total Amazon revenue mark, signifying the epic success of the geographic expansion. The next venture was in France. When Amazon entered UK and Germany they did it through acquisitions, however when they entered France they did not acquire any established company, instead they got the business up and running from the scratch. The formula was simple here too, â€Å"Get Big Fast†, which is why the business started with the complete portfolio of books, music, video, toys, et al. Growth in International sales for Amazon grew by 74%, which in turn helped the European business to cross the 13.4% of the total Amazon revenue mark. Challenges in replicating amazon’s US model in EUROPE Although Amazon was doing well in Europe but the ambition was high as they had the intention to repeat the success of Amazon US in Europe too. However they were confronted with some heavy challenges from the European markets. These challenges could be tackled but to do that they required some radical change in the strategies that Amazon applied and adopted in US. The 4 main challenges were: Selling regulations in Germany France The prices of the books being sold in Germany France were fixed. No discounts could be offered on those prices. The selling model for Amazon in US was to offer discounts on the prices of the books, which they got from the wholesalers and publishing houses. Over here they could not provide those discounts that they got on the bulk purchases from the wholesalers and publishing houses. Payment options In Europe, more than 62% of the customers used cheques to make the purchases. The core competency of Amazon was online retail which meant online purchasing via credit cards. This came as a major challenge to Amazon as they did not have any brick or mortar store where the concept of payment through cheques can happen. Different supply market factors In US, Amazon relied heavily on the suppliers for the books. However in Europe they suffered a setback because of the dearth of wholesalers and big suppliers. In UK although they were able to manage the supply with a handful of suppliers, but in France there were none. This forced Amazon to have tie ups with umpteen number of publishers for the supply of books. Low penetration of EDI in European countries Amazon used EDI (Electronic Data Interchange) to have a communication with the supply chain management of the suppliers in US. This increased the efficiency of their own supply chain tremendously. In case a supplier was having a stock out of a particular item in his inventory, he could respond back in real time to Amazon with a rejection to take the order from customer. This enabled Amazon to immediately send the information back to the customer about the unavailability of the item. This, however, was not much in use in Europe as they still used the concept of emailing and Fax but not any sort of real time data sharing. In addition to the challenges mentioned above there were other challenges too. Amazon relied comprehensively on the national postal services in the respective countries of Europe where they were operating. But they were competitive only in their own countries and not in other countries. This created a challenge for Amazon because they had a lot of shipments which were cross country shipments. Problems Identified Recommendations With the challenges in mind there were a certain number of options for Amazon, which could solve these challenges for Amazon as they go forward and expand more and more into the European market. These recommendations require radical change in the strategy from the one which was followed in United States. Should Amazon Europe build an EDN? Europe as whole is treated as a single entity by amazon. Although they have separate units for separate countries, the parent company, Amazon, thinks of it as a single market. Therefore they intend to have a EDN (European Distribution Network). As per this concept, the entire Europe will have a single distribution network not separate distribution networks of individual countries. This is a massive step because Europe as a market is huge in size and very fragmented. But we suggest that a single EDN will be much more beneficial and the reason for that are mentioned in the bullet points below: Operating independent units is much more expensive than a single unit EDN implementation ensures uniform product offerings in each country which in turn will help in the consolidation of the business across the entire continent EDN implementation ensures procurement department centralizes purchases, and avails higher volume discounts as this is the prime strategy on which Amazon grows and thrives In case of system failures, EDN implementation reduces risk of relying on single DCs, making sure that the plan B for every failure is in place Hence implementation of EDN is a logical choice. Should Amazon use a single centralized DC or keep the existing 3 DCs and let them share orders? Another major problem for Amazon is to figure out whether or not to have multiple individual DCs or have just a single unified Distribution Centre at a strategic location. This problem is in line with the strategy for the implementation of EDN in Europe. We suggest that they should integrate Amazon’s European operations as a whole and accept it as a single market. With that in mind they should follow the following steps to achieve this target, How to sustain customer satisfaction after implementation of EDN? A major drawback for EDN is that this will cause a serious impact on the customer satisfaction levels. This is primarily because the customers who are used to getting their items delivered free of cost in very less time due to the distribution centre being in that country itself will have to either pay to get the item delivered in less time or get the item delivered in a longer time. All in all the lead time for delivery will increase and only additional cost for the customer can decrease that. To improve customer service Amazon must follow the following steps, Should the French Distribution Centre be left operational? This problem is a slightly tricky one as this requires Amazon to decide on whether or not to cut off an important limb from their body. Since the operational usage of French Distribution Centre will be redundant, is it viable to keep it running or remove it from the unified distribution network of Europe? This question can have multiple answers and no answer is possibly entirely correct. However we suggest that Amazon should not immediately close the French DC but gradually phase it out of the distribution network. During the expansion phase of Amazon into the rest of the Europe this DC can act as a support for the newer countries where Amazon wishes to venture in the European Distribution Network. Immediate disposition of this DC is not a viable option as this will cause a lot of complexities for the entire EDN. Since this DC will have some competencies and must be having some items which are solely kept in the inventory at this DC itself, this Dc will serve its purpose for some more time. The best option is to decommission the French DC in a phased manner over a period of time. How to detect demand trends, especially for fast moving items, if European level buying is consolidated? The only way to make sure that the inventory levels in a distribution centre is at an optimum level is through better forecasting. Making sure that the replenishment in a warehouse is done at proper interval in adequate quantities is by having an accurate information about the demand in future. Demand estimation is the backbone for any supply chain management system. Proper implementation and information processing through ERP is the method used by the most successful companies in the world. ERP helps improve the planning for the supply chain, both inbound and outbound aspect of it. Besides that money saved through the cost cutting initiatives should be invested to develop the supply chain, logistics and distribution characteristics of the EDN. In addition to that, it is very important to capture the easy wins first and get a hold of the market. It is very critical for Amazon to have standardization and build synergies across the divisions in Europe. To do that it is important that Amazon defines and implements comparable metrics (for example vendor lead time) across the European countries to develop enhanced understandings of their operational activities References Childerhouse, P, Towill, D 2011, Arcs of supply chain integration, International Journal Of Production Research, 49, 24, pp. 7441-7468 Forbes.com 2011. Why Amazon Is The Best Strategic Player In Tech. Retrieved February 27, 2014 from http://www.forbes.com/sites/venkateshrao/2011/12/14/the-amazon-playbook/2/ Joseph Bonney 2012. Amazons Supply Chain: Delivering Clicks and Bricks. Journal of Commerce. Retrieved February 28, 2014 from https://www.joc.com/economy-watch/amazons-supply-chain-delivering-clicks-and-bricks_20120130.html?qt-webcasts_podcasts_whitepapers=0 Knowledge @ Wharton 2009, November. Fit for the Holidays: Amazon Is Shaping Up and Shipping Out. Retrieved February 27, 2014 from http://knowledge.wharton.upenn.edu/article/fit-for-the-holidays-amazon-is-shaping-up-and-shipping-out/ Lichocik, G, Sadowski, A 2013, EFFICIENCY OF SUPPLY CHAIN MANAGEMENT. STRATEGIC AND OPERATIONAL APPROACH, Logforum, 9, 2, pp. 119-125 Mark Brohan. InternetRetailer.com 2010. Amazon’s secret European weapon: Square footage. Retrieved February 28, 2014 from http://www.internetretailer.com/2010/08/31/amazons-secret-european-weapon-square-footage Modern Materials Handling 2012, December 14. Supply chain: Amazon is changing the rules of the game. Retrieved February 27, 2014 from http://www.mmh.com/article/supply_chain_amazon_is_changing_the_rules_of_the_game MWPL. Amazon Global Fulfilment Center Network. Retrieved February 28, 2014 from http://www.mwpvl.com/html/amazon_com.html Roh, J, Hong, P, Min, H 2014, Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms, International Journal Of Production Economics, 147, Part B, pp. 198-210 Viswanadham, N, Samvedi, A 2013, Supplier selection based on supply chain ecosystem, performance and risk criteria, International Journal Of Production Research, 51, 21, pp. 6484-6498

Examine the factors which explain the differences between economic Essa

Examine the factors which explain the differences between economic growth rates in countries. Economic growth is the long term increase in productive capacity as shown by an outward shift on a PPF curve. The PPF shows the maximum potential output of the economy. Productive capacity is an economies ability to produce goods and services, so if an economy grows, it can produce more goods and services for the population of the economy to use. Differences in Economic growth in countries result due to many factors, such as land and its resources. The amount of land a country possesses, and all the natural resources it finds on the land can affect the amount of output. For example, Saudi Arabia has experienced very high growth rates due to the richly endowed lands which contain much oil. In this developing economy, the oil exploitation was vital for its growth. Some 3rd world countries are so poor, and lack such growth as Saudi Arabia, because they have insufficient land, or insufficient resources to produce goods and have a higher output, and therefore have a higher economic growth. Another supply side factor determining the growth rate of countries is labour, i.e. the number of workers in an economy. More workers mean more output, so should lead to economic growth. Growth rates in different countries may differ due to population differences, as an economy with a higher population, will have a larger workforce. Some countries have immigration laws which can help increase economic growth. For example, an economy can employ migrant labour, by allowing migrants into the country only if they are educated, and in a position to work. This includes only letting younger people into the country, so that there are... ..., and experiences high growth rates. China, one of the fastest growing countries, also concentrates strongly on educating people at a young age. Another factor influencing growth is the significance of international trade. In countries that don’t participate in international trade, such as , there is very slow or no economic growth. This is because it is very hard for one economy to produce all goods which people require. It is better to specialise in a few goods, use them, sell the surplus, and use the money to buy other goods from other economies, rather than the economy to produce everything itself, which is very inefficient. In this country, there is a much slower rate of economic growth compared to other countries. So altogether, there are many factors influencing economic growth, and this leads to different growth rates in different countries.

Comparison of Essays by James Baldwin and Eric Foner

The Identity American English What makes you an individual and an American? The idea of what qualifies a person as an American is very vague. Eric Foner, in his article â€Å"Who is an American? † describes the idea of what qualifies a person as an American has changed over the years. There once was a time where the only people who were American citizen were white males that later became that all people living in the United States had the qualification of becoming a citizen. There are several factors, including both underlying and overt, that affect idea who qualifies as a citizen.Overt factors such as if you are here legally or if you have your citizenship certificate to more underlying factors like what you look like or if you can speak English. James Baldwin in his essay â€Å"If Black English Isn’t a Language, Then Tell Me, What Is† explains how the English he and his people speak is what qualifies them as individuals. Going on to say that, with out the langu age that they used to communicate with each other their survival would not have been possible.Both Eric Foner and James Baldwin talk about individuality and identity in their articles and arguing that the identity of a person is what gives the person their freedom and liberty. Eric Foner states: Americans’ debates about the bases of our national identity reflect a larger contradiction in the Western traditions itself. For if the West, as we are frequently reminded, created the idea of ‘liberty’ as a universal human right, [West] also invented the concept of ‘race’ and ascribed to it predictive powers about human behavior (Foner 141).Foner implies America, as a whole, is a diverse country; the thought of each of all American belonging to a single, included group, is somewhat illogical. All American have different need and wants, different goals and ambitions, and can’t all enjoy the same â€Å"liberty† because of their â€Å"race† . Baldwin agrees with that saying, â€Å"The brutal truth is that the bulk of the white people in America never had any interest in educating black people, except as this could serve white purposes. Baldwin 3)† Baldwin gives a specific example of how a race oppressed another race and how the race alone was a factor of why there wasn’t equality in the freedom received by the people. The identity that Baldwin shows here is of a young black child who has lived to tough times in life. The only way he will be able to obtain the same freedom as a white child is through the education, that the black child can only receive from white adults, who only want to use the black child for their own benefit.Even with the freedom the child was promised through the education he would still be a slave to someone or something else. Foner and Baldwin also agree on the fact that African American always excluded from the citizens of the eras. Foner stating, â€Å"Slavery helped to shape the identity, the sense of self, of all Americans, giving nationhood†¦ a powerful exclusionary dimension† (Foner 142). Slaves never had the same treatments as the owners. They were always the left out party who didn’t get the same â€Å"liberty, equality, and democracy† which are the main ideologies that a person needs to be an American (142).If all you need to be an American and enjoy the same liberty and freedom as all other people was to believe in liberty, equality, and democracy â€Å"†¦slavery could never have lasted as long as it did† (Baldwin 2). The fact that slavery lasted as long as it did show that the freedom one person get is not the same amount as someone else. Foner and Baldwin do not specifically talk about the rights of people and how unfairly they are shared in their article, but both do have an underlying implication of the rights of people.Baldwin, for the majority of his article, talks about the way language is spoken by the Bl acks and then in the end states that an uneducated country with so many impurities cannot teach anything to its people. Foner, unlike Baldwin, talks about identity and correlates it with the idea of freedom and equality. In his conclusion stating the just like our identities are changing our belief of freedom and equality will always change. For Baldwin language had the connotation of freedom and equality while Foner used identity to connote the same thing.Both articles were written in the late 1900s, and the political and social struggle mentioned in both the articles still exists; the changed asked by both authors still needs to be implanted. Baldwin, James. â€Å"If Black English Isn’t a Language, Then Tell Me, What Is? † Readings for Analytical Writing. Third ed. Boston: Bedford/St. Martin's, 2011. Foner, Eric. â€Å"Who Is an American? † Readings for Analytical Writing. Third ed. Boston: Bedford/St. Martin's, 2011.

Challenges and Opportunities of the Global Insurance Industry

Introduction The global insurance industry seems to have escaped the worst of the financial crisis in comparison to other financial institutions. Day to day business has been relatively unaffected but the area that gave the most cause for concern has arisen from exposures to risky financial instruments. â€Å"The Reactions Magazine’s Global Insurance Conference 2009† was held in Swissotel, Zurich, Switzerland. At this conference the financial services industry tried to re set itself following the worst crisis for years. (www. euromoneyseminars. com). Insurance is an established industry. Like other companies insurance is facing increased competition from global players. It has been difficult for insurers to accomplish profitable growth, so they need to improve this. They will need to adopt new advanced approaches to expand their distribution networks. This essay is divided into two sections. The first talks about the types of risks that are present in the global insurance industry. I will take each of these points and discuss them in detail: growth, governance and risk management, market reporting, mergers and acquisitions, human capital and lastly compliance and regulation. The second section looks at the opportunities that are available to the global insurance industry within the next twelve to twenty – four months. They include: disaster modelling, disaster planning, managing the industry’s reputation, grow globally, innovative products and delivery and Focus on readdressing product and distribution strategies. The insurance industry is always looking for new opportunities in different services and geographies. To take advantage of these opportunities insurance companies need to re-examine their strategies and be prepared to drive basic changes in the way they work. The primary function of insurance is to act as a risk transfer mechanism. The basic principle of insurance is that the losses of the few are paid by the many. Its underlying purpose is to provide protection against the risk of financial loss, thus giving peace of mind to the policyholders. † (www. peerpapers. com) Challenges are getting bigger for insurers as an increas e in pressure for bigger profit margins. This means taking a hard look at reducing costs and top line revenue growth. Making a profit is due to the ability to accurately assess risk and look after customer relationships over time in order to get financial success. I am going to look at the following six challenges. 1. 1 Growth After a spell of cost cutting and readjustment, insurers are again moving up a gear and trying to strive for managed growth. While growth is valued by investors, it is hard to find in the fairly mature insurance industry. To be successful in the future companies will need to create and design new products and services, cross – sell more effectively, strengthen their ties with brokers and agents and avail of any opportunities presented by emerging markets such as China and India. (www. pwc. com). Further demand for pensions and health insurance is likely to rise in the Western world as the population ages and lives to enjoy a longer retirement. Costs will remain critical however to meet the ever exacting demands of today’s customers is liable to be the main point of contention. There are new openings from the increasing wealth of customers in new markets e. g. China. As their insurance industry is one of the fastest growing in the world with GDP at 3. 2% and the end of December 2008, they stand far behind the global average of insurance industry which stands at 7%. www. lloyds. com) Saturation of insurance markets in the developed world has made the Indian market more attractive for international insurers according to â€Å"Booming Insurance Market in India (2008-2011)†. This is due to its huge population base and large untapped market. (www. newsblaze. com) 1. 2 Governance and Risk Management Natural calamities are another challenge facing the industry. Global warming has caused a change in weather patterns which have caused a shift in the underlying probability of insured loss by storms, floods, wind and heatwaves. Natural disasters like hurricanes Katrina and Rita whose losses amounted to $61. 5 billion (www. duncansadviceonmmoney. vox. com) These disasters posed some very serious problems for the insurance industry as they are faced by difficult and uncertain financial burdens because of this this has shown the importance of quality data and calibration of model outputs, effective validation and also the experience and initiation of the underwriter. Structures will have to be put in place to tackle the threat of climate change. The development of Enterprise Risk Management (ERM) capabilities help to protect insurers from damages to their reputation and provide a platform for strengthening governance, decision making and compliance with regulations. Pricewaterhouse- Coopeus (ERM for the insurance industry) revealed that many insurers have difficulty implementing and enforcing ERM in the face of containing data, systems and governance challenges. Also found in this study were examples of how resourceful and efficient management and helping to overcome these hurdles and bring greater insight to the insurers ERM missions. www. pwc. com) 1. 3 Market Reporting Insurers are facing a major overhaul of market reporting. This contains the launch of the market Casistent Embedded Value Principle, a planned move to a finalised IFRS level for insurance contracts and the increased risk and capital management disclosure foreseen by EU Solvency II â€Å"Scheduled for implementation in 2012, it is a new regulatory regime de signed to provide a principles-based supervisory framework for European insurers and reinsures. Solvency II is a risk-based system and is being built to meet the challenges of rapidly developing financial markets. It will also bring an increased level of transparency and harmonisation to the sectorâ€Å". (www. towersperrin. com). These changes are likely to set a model for global disclosure for others to follow in relation to risk. The key elements , include the possible adoption of IFRS(International Financial Reporting Standards) in the US form 2014. Implementation of Solvency II and IFRS reporting will be demanding. The good news is that corresponding timings and basis of valuation could open up cost – savings in areas like data, modelling and reconciliation. These changes help to increase stakeholder confidence by enabling insurers to show a single view of their business that shows more clearly how it is run on the inside. A survey by (IFRS 2007) insurance states that companies will need to provide more risk information and explanation to meet the exacting expectations that have come about from market events. (www. pwc. com) 1. 4 Mergers and Acquisitions Although funding is a challenge from time to time. Mergers and Acquisitions is vital for business to expand complementary earnings streams, realise opportunities for cost saving synergies and reinforce their existence in fast increasing emerging markets. Emerging markets are underinsured and these present potential business for the insurance market. Within ten years China is expected to become a leader in the global insurance market, while India is set to double its digits in the growth rate. However, due to cultural conflicts and protectionism could stop growth in economies. In the near future, the insurance industry is liable to be a very active period for mergers and acquisitions. US insurance companies attractive evaluation will make it easier for insurers in the EU to infiltrate the US market. (www. pwc. com) 1. 5 Human Capital All organisations in the world realise the importance of people in the conduct of their business therefore the trend of classifying their employees as assets. The human resource management school of thought tends to focus on the enrichment of the knowledgeable worker in terms of its theory. Human resource planning should be part of the total resource planning equal to planning devoted to capital development and materials and equipment purposes. Many insurers are facing an skills shortage in their workforce. Training and development of staff is now on the agenda as a rule in all organisations. Improved productivity is expected to result in trained and motivated workers. The employee training programs are intended to provide them with more knowledge and skills so they can do their job to the best of their ability. Training is a visible pay-off and is seen immediately whereas development is future- orientated.. Lessons are being learnt on a continuous basis in the requirement of human capital in the new economy in comparison to the old economic labour force. M Morley et al 2004). This investment in recruitment and career development lags behind other financial sectors. They look at short term fixes rather than looking at the long term prospects. However, looking to the future demographic shifts accelerating globalisation look set to change the shape of the labour market and make it more difficult to attract and retain good peo ple. (www. pwc. com) 1. 6 Compliance and Regulation Growing regulatory demands are bringing increased problems to insurers. Solvency II is included to require a critical check of capital and risk management along with sustaining information and documentation. The EU Reinsurance Directive gives a standard system of regulation and mutual recognition across Europe. This includes an ease of the regulatory limitations on securitisation which could give way for a large increase in risk transfer to the capital markets. Also they give a new definition of reinsurance that will prevent several contracts. Insurers are also facing a ceiling on regulatory changes including anti-money laundering and harder conditions on consumer protection. A key challenge is to know how to include these requirements into â€Å"business as usual†. Enterprise wide risk management can assist in providing ways to do so. They can help by giving a greater understanding of the trade off between reward and risk which will result in a brighter capital allocation. (www. pwc. com) As I have discussed in the challenges previously opportunities in the next twelve to twenty-four months can be found by global expansion adopting the latest technologies to give better service delivery and provide services to meet the exacting requirements of the next generation of retirees. The insurance industry is in the process of undergoing transformation as a result of the following three factors : sector specific, macro and operational. Increased regulation requirements outsourcing, globalisation, new distribution channels, more modern IT systems and climate change are adding to the increased volatility in the insurance industry today and they are now positioning themselves to be successful in the future that requires many changes in the way they do their business. China is one of the fastest growing insurance industries in the globe. â€Å"China Insurance sector forecast 2013† is the outcome of much research and in – depth study of the insurance market in China. Between 2009 and 2013 it is expected to grow CAGR of 28% – 30%. Chinas insurance industry is already out of the financial crisis and is expected to make great headway in the coming years. In 2008, the industry grew in the fastest pace since 2002, due to the rising insurance awareness level and government support. Insurance products which include life, health, and personal accidents accounts for the majority of growth. Property insurance products are also growing rapidly and are basically divided into two segments â€Å"motor and commercial property insurance†. Non life insurance products i. e. that is product liability, credit and marine insurance etc. These will decide the long term viability of the non- life insurance market. 2. 1 Disaster Modelling The tragic impact of the Asian Tsunami, as well as the worst Japanese typoon in 2004 was the year of improbable disasters. As a result, this forces us to look at how we prepare for such risks. Hurricane forecasting began in the 1980's, forecasters have tried for many decades despite being unsuccessful to deliver accurate predictions, and landfall activities. Scientists of tropical storm risk in London announced that they had developed a new model which represents a major step forward.. (www. lloyds. om) Insurers also use models developed by companies e. g. Air Worldwide Corporation to predict the damages caused by storms so that insurers can forecast the payouts to be made. (www. informationweek. com). This reminds us of the importance of investing in scientific research to help our understanding of risk and its impact 2. 2 Disaster Planning Insurance and disaster planning are closely related as they both deal with the risk of the disaster happening and the after math. Due to the upward trend of catastrophe events we see the need for robust and effective disaster planning for the future. Part of the solution must be insurance markets and their regulators working together sharing their respective knowledge and expertise. By doing this, we can be sure that response procedures are well tested and run as smooth as possible for when the next disaster strikes. In terms of claim handling, lessons can be learnt. The shortage of adjustors on the ground and the mishandling of claims by some shows how important the relationship between the insurer, the adjustor and the regulator is. As the frequency and cost of disasters goes upwards it will be very important to have a relationship based on trust and flexibility. (www. lloyds. om) 2. 3 Managing the Industry's reputation Improving transparency and disclosure are two issues which are needed to manage and improve the industries reputation that has been rocked by high profile developments. For instance in the USA the New York State Attorney Generals investigation sparked very close scrutiny of the commercial insurance market. In th e minds of customers, commentators and regulators the financial service industry has been left with a very poor image, after the recent investigations. These investigations highlighted the lack of transparency and accountability that are expected of a 21st century business environment. These issues can no longer be ignored. In a survey, by Lloyds of a hundred underwriters, one third admitted that the industries reputation is tarnished. Transparency and disclosure as well as good communication appears to be the answer to those outside the industry globally. Basically more time communicating and building bridges with consumers, economic leaders and world politicians initially means less problems down the line. (www. lloyds. com) 2. 4 Grow Globally Sales in new markets or by new acquisitions insurance companies need to grow globally more than ever before. Growth in the European and American market is slowing down while growth in India and China is increasing. The aging population presents insurers with a dilemma. The industry has great difficulty in attracting and retaining talent than other sectors of the financial services industry.. This situation is going to get worse as there are more retirees and fewer graduates moving into the top jobs. There is also a loss of graduates to banking and other financial institutions. Concern is expressed about the career path from insurance company hire to insurance agent. If this problem is not addressed the industry’s sale force would diminish. By moving into the European and American markets, insurers can grow a less risky strategy rather than expanding into new product lines. Those who do go overseas have to look at the various business lines in different markets. Chinas middle class and aging population with long term care and security needed make it a very viable option for foreign insurance companies. By 2010 China will be a major player on the insurance market. The same is also said of India. (www. rmislab. com) 2. 5 Innovate Products and delivery Innovation is seen as the main driver of profit over the next three and five years both in delivery and product innovation. By building relationships with customers moving them for example form car insurance to other insurances as they become asset rich. By providing better service and delivery insurers can strengthen their customer base. Technology can strengthen relationships with intermediaries which helps them run more efficiently and reduce their running costs. Insurers must look to cut cost they can do this by cost reduction initiatives like outsourcing and use of shared services, rationalizing product portfolios . Companies need original approaches and to continue to invest in this very complicated environment. (www. rmislab. com). â€Å"In 2007, AXA Equitable Life Insurance Co introduced a variety of enhancements to its variable annuities including an expanded choice of â€Å"living benefits† and the upbundling of optional income and death benefits† (www. deloitte. com) 2. 6 Focus on readdressing product and Distribution Strategies As the economy continues to even out, insurers need to evaluate their decisions and distribution channels. These decisions are vital in assisting insurers rebuild capital as well as positioning themselves for future growth. (www. ey. com). Insurance companies that sell directly through call centres, internet and direct mail have been performing better and this is due to lower costs because of their economies of scale and strong internet capabilities. Compared to independent insurance agents who lack these advantages have been put under pressure they require support and further development. Insurers need to find ways to work more effectively across product lines e. . give a customer packages that reward him/her for being a good driver. (www. deloitte. com) Conclusion In my findings I have found that the insurance industry has survived the financial crisis much better in comparison to the banking sector. This is due to its strong focus on risk management and long term prospects. Even though capital markets have decreased downwards their insurance assets, insurers are optimistic about the fu ture and some are expecting an improvement in prospects in mergers and acquisition over the next twelve to twenty – four months. The global insurance industry faces many challenges but despite these that they are being faced with the majority of insurers must move into fast growing markets i. e. India and China or find new innovative ways to get more businesses out of slower growing developed markets. China with its huge population is an obvious choice while the latter options include diversification, new products and speciality products. Insurers need to improve their risk management especially in the areas of disaster modelling and managing the industries reputation as it is vital to have a tarnished free reputation. Finally insurers need to work effectively and efficiently to develop and market a range of products aimed at older customers. In this intensely competitive market, employers will need to develop an excellent human resource management capable of responding to business needs and the workforce expectations. They will need to be able to identify and realise opportunities for career development prospects and other key areas of their employment. (www. pwc. com) With this knowledge insurers will be able to position their business models to optimize investment returns and control operations using the most effective and efficient methods available.

Abortion Problem Solving Project essays

Abortion Problem Solving Project essays Every year, throughout the world, there are an estimated 36 to 53 million abortions performed. Of these, only about 26 to 31 million are legal (King 158). Further, in the U.S. alone, nearly one-third of all pregnancies end in abortion. Abortion, to say the least, is a controversial topic in todays society and has been for the last two decades. Two opposing sides emerge from this problem: Those opposed to abortion, Pro-life, have concerns about protecting human life. On the other hand, those in favor of abortion, Pro-choice, feel it is the right of the individual to make the decision for themselves. A 1996 Gallup poll showed that 83% of Americans were in favor of a womans right to choose. However, in 1998, a similar poll showed that while the majority of Americans were still pro-choice, they felt that an abortion should be harder to get. In the last 2 decades, abortion has become a growing target for criticism as well as acceptance in todays changing society. There has been much controversy as to what abortion should be considered as- life or death. Should it be a choice, or should it be the equivalent of murder? In the context of defining abortion, there has been many stipulations as to what constitutes abortion- when does life inside the whom actually begin? When dealing with such a sensitive topic as abortion, in which there are in fact two extremely diverse viewpoints, it is difficult to present a sensible answer to the way it should be. In the best of all possible worlds women should be able to live their lives in the way that suits them best. Society places heavy opinions on women who have had or are planning to have abortions; this in turn has an impact on the well being of the woman. Secondly, women are placed in a very dif ...

power vs freedom essays

power vs freedom essays In the world today many different elements make up a good government. Everybody has their own opinion about each element's importance, as well as I do. If I were to create a government for a group of people, power, order, and equality would be my top three elements I would choose. In todays world I feel power is a necessity in our government. To me, without power, people would do what ever they want, whenever they want because they know there is nobody who can punish them. I feel without power in our government many people would be lost, nobody would have any direction. The world would be dirty, uneducated and careless. With our government having power people will be part of the right track and people will be better behaved. Power can establish many things. One thing that power can establish and that I feel is very important in government is order. I feel order is the second most important element to create a government. Power can make an order and with this order, jobs will get done a lot faster, easier and more sufficient. If there was not an order everybody on this land would go crazy at some point. People would be running around doing things, but in the end accomplish nothing. With order people know what other people are doing so they do not do the same job over and over again. By having order everybody would be organized and less stressed out. People would know exactly what they need to do and when they need to do it. Having order in our government would decrease problems and allow more time to learn new things. In todays world an order or a process has to happen for everything, without it, our world would be a disaster and nobody would accomplish anything. A third element of government that I feel is important is equality. By having everybody equal in the country people will be nicer and more understanding. Equality is what makes America so great. Everybodys voice is important an ...

Top 7 College Dating Blogs

Top 7 College Dating Blogs Dating and college – its easy to see why plenty of people think the two simply dont mix. Dealing with the emotional ups and downs of a relationship on top of papers, professors, essays and exams can be enough to send just about anyone running for the hills. But true love waits for no man – and no semester break – so when dating and relationships get to be a bit sticky, its time to turn to one of these 7 blogs about dating while in college to help see you through. You Can Get the Girl! Although this website focuses on how to get a girl, the advice is easily transferable for women looking to grab the guy of their dreams. However, since the focus is on women, this is an especially helpful website and blog even for those who simply dont know where to start. Their bloggers and writers focus on everything from approaching a girl for the first time to planning the perfect date and tips on how to follow up and turn that date into the beginning of something beautiful. The College Crush College may be a time for change, but some things always remain the same. When you find yourself in the throes of a full on crush, chances are youll feel like youre back in grade school. The College Crush crew are there to help with great information on how to tell if your crush might be flirting back or just leading you on along with tips on how to turn crushing on someone into a real life relationship. Once youve landed your crush, you can head on over to their helpful sections on developing a strong relationship and how to best blend your new significant other with the friends who have been there since Day One. College Gloss The College Gloss website offers a bit of everything and students can find help and advice on a wide array of topics, from the best way to make space in a cramped dorm room to how to maintain a relationship while youre dealing with a full class and work schedule. Although the feel and focus of the website will appeal mainly to women, men can find helpful advice on whether or not to wait a day to text, how sending good morning texts and email can boost a relationship and other relationship mysteries. Best of all, College Gloss offers a truly one stop experience from everything from getting dressed to finding an internship. College Candy College Candy tackles issues like relationships, hookups and style with the same passion other websites dedicate to studying, class selection and resume building. While their subject focus may be more light-hearted than most, the passion with which they write is second to none. The authors at College Candy help out with advice on overcoming shyness and difficulty breaking the ice as well as grappling with serious problems, stresses and strains that can seriously affect – and destroy – college relationships. They focus mainly on romance, style and friendships – all of which can make or break your college experience. When youve got your classes figured out but your fellow students are the real puzzle, College Candy comes to the rescue. College Passions Their name may sound like an afternoon soap opera, but College Passions is all about connecting students. Modeled after other popular dating websites, College Passions matches up co-eds based on location, major and shared interests. The website offers a completely free membership and its only open to college students so you wont have to worry about sifting through profiles looking for someone who understands where youre coming from in terms of the stress of college life. They also offer ways for members to chat online, a special email account and general resources to help with finding textbooks, saving money or just joining in their community forum. Her Campus Dont let the name throw you – Her Campus is there to help every student, albeit with a heaping helping of pink. Her Campus maintains an amazing amount of info and gets started at the beginning by helping high school students find the college of their choice, get tips on how to apply and ultimately how to survive the entire experience. In terms of relationship help, Her Campus provides readers by poking fun at the dating scene with lists like â€Å"The 8 Worst Pick-Up Lines Actually Attempted on Collegiettes† as well as help with more practical relationship problems like dealing with long holiday breaks and surviving through each others mid-term madness. Dating Advice As its name suggests, this is one of the most straight forward and simple dating websites around today. Featured on outlets such as CNN, the Huffington Post and HLN, Dating Advice delivers exactly what it says – advice on every aspect of dating imaginable. From negotiating your way through online dating to dealing with friends and significant others who just dont mix. They also offer a members forum and access to various studies and reports which will satisfy psychology majors and obsessive over-analyzers alike.

Problem Solving & Decision Making Essay Example | Topics and Well Written Essays - 750 words

Problem Solving & Decision Making - Essay Example Different studies present varying models of a typical decision-making process depending on their perspectives. Some models follow eight steps, others five. For purposes of making intuitive choices, the Harvard Case Approach (HCA) following four steps would be utilized. The four steps of this natural, intuitive decision-making process are: Step 1: Define the problem; Step 2: Alternative Courses of Action; Step 3: Analysis; Step 4: Recommendation. Initially, there is a situation where one of the subordinates, a security personnel, who was scheduled for regular work on a 10:00 PM to 6:00 AM slot, requested for a change in schedule due to emergency reasons. His wife called in early at 8:00 AM and informed the appropriate channels that the security personnel had to undergo immediate surgery for appendectomy. Therefore, he would be on emergency leave for five days. The shift sergeant was immediately informed of the situation and necessary changes in shift schedules have to be reviewed to fill in the temporary vacancy. a. Recall a security personnel on scheduled vacation leave. This option calls for determining a personnel on leave during the five-day period, who can be recalled for emergency purposes and who would be requested to report on the specified 10PM to 6AM schedule for five days. After which, he can resume his leave. b. Require overtime for current security personnel. Utilize security personnel to extend their shifts to at most four hours. Security personnel from the PM shift could extend from 10PM to 2AM and AM shift personnel could be requested to report four hours early (2AM instead of 6AM). The first alternative would entail some time and effort to locate and contact the security personnel on vacation leave. This option’s viability depends on where he is spending his vacation, the time he could return, the persons to be affected

Description of pictures Essay Example | Topics and Well Written Essays - 2000 words

Description of pictures - Essay Example Moreover, with regards to the colors which were used, these are almost invariably either bright earth tones or dark browns/black. This has the added affects of portraying a scene that is indicative of fire and the consumption of nature by such a force. Objects in the background are obscured by the vociferous action and drama that the flame-like brush strokes portend. Rather than seeking to understand the painting as a single undifferentiated unit, the viewer would perhaps do better to understand the painting as a result of its component pieces. Due to the fact that the painter has presented the viewer with several punctuated levels of energy/passion/drama upon the canvas, each of these can and should be integrated with upon a different level. To this author’s understanding, there are 4 such punctuated scenes that are exhibited within the artwork. Although it is beyond the skill-set of this author to define what each of these specifically mean, understanding that there exist 4 punctuated scenes within the broader scene is in and of itself a start to seeking to define and understand the intention of the artist to a more full and complete degree. The second picture represents a stark contrast to the first due to the fact that it has strong overtones of cultural understanding within its themes. Firstly, the viewer can and should realize that the pyramids are pictured beside the skyscrapers that exist within the background. This juxtaposition of old and modern helps to give a broader understanding to the tribal individual that is featured and represented in the foreground. With respect to this individual, there are several further thematic elements that serve to contrast and confuse the viewer. Firstly, although he shape of the pyramid along with the mountains in the background lead one to assume the painting is indicative of the Aztecs of Mayans, the tribal individual in the foreground represents much the same dynamic except for the fact that he has protrudi ng from his mask a set of elephant tusks; this of course helps the viewer to understand that the scope of the painting may very well be integrating with a more complex dynamic than merely showing the means by which a tribal Mayan/Aztec would understand and relate to the way in which the modern representation of life is so drastically different from his own. In such a way, the artist may be trying to convey the understanding that all ancient cultures are dramatically and irrevocably removed from the current society. In keeping with the theme of analyzing artwork that speaks to the experience of native peoples, the preceding piece of course shows a male and female Native American staring wistfully at an imaginative representation of a full moon. Two dynamics strike the viewer upon a closer examination of this particular piece. The first of these is the festive banner that spans the painting along the lower 1/3 of the artwork. This leads one to believe that some type of festive celebra tion or tribal activity may be ongoing; further reinforced due to the presence of a full moon in the sky. Accordingly, the second dynamic that strikes the viewer is with regards to the strange representation of imagery that is within the right hand of the man within the painting. As such, he appears to be holding a torch that is flaming both behind the head of the female and upon the heart of the male. Additionally, upon his hand there is a white star that is highly reminiscent of the star

Capstone experience Coursework Example | Topics and Well Written Essays - 1750 words

Capstone experience - Coursework Example Moreover, the company had reserves of approximately 25.2 billion equivalent barrels of oil as of 2013 and, as of 2010, its production rates were expected to remain constant for at least fourteen more years (Coll, 2012). ExxonMobil operates in twenty-one countries with thirty-seven oil refineries across the world, which has seen the company achieve a combined refining capacity of 1 million m3 of oil every day making it the world’s largest oil refiner by capacity. Standard Oil, which was ExxonMobil’s precursor company, was also the world’s largest oil refiner between 1870 when it was incorporated and its change to ExxonMobil. As the largest of all super-majors in the oil industry, ExxonMobil has a daily production capacity of ~3.9 million equivalent barrels of oil, which makes up roughly 3% of the entire production of oil in the world (Coll, 2012). This means that, despite being the largest oil company in the world, it still lags behind various state-owned oil companies like ARAMCO and Rosneft. When ranking is done by gas and oil reserves combined, ExxonMobil ranks as the 14th biggest company in the world with less than 1% of all total reserves under its control (Coll, 2012). With regards to its marketing of oil and gas products, ExxonMobil uses the brands Esso, Mobil, and Exxon, while it also holds majority share in several smaller oil companies like SeaRiver Maritime that ships oil and gas and Canada’s Imperial Oil Limited. The company has more than 82,000 employees across the globe, of which 27,000 work in their upstream headquarters in Houston and a further 4,000 employees work in its downstre am headquarters in Fairfax (Coll, 2012). ExxonMobil’s global organizational structure is functional in nature. My career objective is to be a safety engineer at ExxonMobil upon my graduation later this year. One of the reasons why I am interested in this position is because it requires the engineer to work as part of a team that includes quality

Private and Public Entity Risk Management Essay

Private and Public Entity Risk Management - Essay Example Like many of it is counter-parts the Minnesota state government has largely ignored the vital role played by risk management in achieving both operational and strategic objectives. The trend was simultaneously aped by also other state affiliated entities such as quasi-government owned corporations and also city councils entities have embraced risk management. Less than 44% of aggregate public Only in recent times there has been an almost immediate and appreciation of risk management knowhow. Formerly traces of public entities embracing aspects of risk management were only evident in the national health insurance policies (personal risk) for their citizens. Recent times have seen public entities aware of other forms of risk currently and previously adopted by their private sector allies such as: †¢ Strategic risk. Enabling government entities to manage current and future threat while leveraging on opportunities embedded in their strategic goals and objectives †¢ Operational risk. Associated with the day to day running of government institutions such as efficiency and integration in core departments such as procurement, auditing and compliance. †¢ Reputational risk. Like in the private sector goodwill is highly valued, any damage to the state reputation will lead to significant decrease to net valuation of the entity. The causes have been more vital through the emergence of social media where information is transferred by the click of a button. Less than 44% of aggregate public of risk management knowhow.

Proposal Essay Example | Topics and Well Written Essays - 1000 words - 7

Proposal - Essay Example Generating revenues will require the integration of the various departments, to push our brand to the market, transforming the company into a successful business entity. After analyzing the market structure of the company, understanding its clients and manufacturers, this proposal seeks to transform the weaknesses into strengths, by analyzing the opportunities available. It is important to understand that although the company has successfully managed to win in the current market, there is no guarantee of competitor threats. As such, this proposal seeks to capture the current market, gaining total control as well as diversifying into new markets. The company has a strong presence in its current market, evidenced by the high sales turnover. Having concentrated in the current market for a considerable amount of time, John and Johnson Company has successfully managed to win the largest market share. Quality satisfies customers even more, as with quality, a customer gets the value for their money. To satisfy customers, it is important to provide them with high quality products and services, which meet their needs and interests. Therefore, the company, by collaborating with manufacturers, has provided them with the customer’s views on the desired quality of goods. As a marketing organization, the company has direct contact with its customers, and thus conducts research on the reception of different products, as well as collecting their views and sentiments regarding a particular product. The company then compiles this in form of a report, then advices its manufacturers accordingly. Subsequently, the manufactures have responded to these views by adding features to the products, thus winning more customers. The company exhibits strong business ethics whenever conducting its business. While collaborating with the manufacturers, John and Johnson ensure that there is a strong client-customer relationship. It feeds

Economics developments in Developing country Essay

Economics developments in Developing country - Essay Example The question that whether the students from developing countries should be sent back to their countries after they graduate need to be analyzed from different perspectives. It is often believed that those students, who have graduated from the universities of the developed world, when return to their countries, often find themselves at odds with the society at large. Since these countries are still on the path to economic development, the environment often fails to support the technological skills acquired by these students. Their potential can be hardly realized and the result is frustration both on the part of the employer and the employed. This is the main cause of the ensuing brain drain that will also damage the economic progress of the country whose students had gone abroad in quest of knowledge. There is another concern that needs addressing and that is the payback of the investment made by the country that has educated the students and raised their educational and vocational level. Philanthropy apart, some benefit should accrue to them as well. There are two sides to knowledge acquisition. One is to raise the level of understanding by giving an impetus to intelligence through knowledge. The other is using the product of this effort in building careers as well as contributing to economic progress and prosperity. The obvious answer is that these students ought to be retained by the developed nation and absorbed in its workforce as contributors to its economy. This serves both purposes of offering better career options to those who were educated and payback to the country which had been gracious to offer them this opportunity. No doubt that these students can become the pillars of the economic future of the host country. However one reality that must be stated here is that the global economy depends equally on both the developed and the developing countries. They cannot survive

Proposal Essay Example | Topics and Well Written Essays - 1000 words - 7

Proposal - Essay Example Generating revenues will require the integration of the various departments, to push our brand to the market, transforming the company into a successful business entity. After analyzing the market structure of the company, understanding its clients and manufacturers, this proposal seeks to transform the weaknesses into strengths, by analyzing the opportunities available. It is important to understand that although the company has successfully managed to win in the current market, there is no guarantee of competitor threats. As such, this proposal seeks to capture the current market, gaining total control as well as diversifying into new markets. The company has a strong presence in its current market, evidenced by the high sales turnover. Having concentrated in the current market for a considerable amount of time, John and Johnson Company has successfully managed to win the largest market share. Quality satisfies customers even more, as with quality, a customer gets the value for their money. To satisfy customers, it is important to provide them with high quality products and services, which meet their needs and interests. Therefore, the company, by collaborating with manufacturers, has provided them with the customer’s views on the desired quality of goods. As a marketing organization, the company has direct contact with its customers, and thus conducts research on the reception of different products, as well as collecting their views and sentiments regarding a particular product. The company then compiles this in form of a report, then advices its manufacturers accordingly. Subsequently, the manufactures have responded to these views by adding features to the products, thus winning more customers. The company exhibits strong business ethics whenever conducting its business. While collaborating with the manufacturers, John and Johnson ensure that there is a strong client-customer relationship. It feeds

Theories of International Trade and Investment Essay Example for Free

Theories of International Trade and Investment Essay Objectives: 1. Theories of international trade and investment 2. why do nations trade? 3. How can nations enhance competitive advantage? 4. Why and how do firms internationalize? 5. How can internationalizing firms gain and sustain competitive advantage? Mercantillism: belief popular in 16th century National prosperity results from maximizing exports and minimizing imports Nonmercantillism: today some argue nation should run a trade surplus labot unions protect domestic jobs farmers keep crop prices high manufacturers some rely on exports Free Trade: absense of restrictions to the flow of goods/services among nations ** Best because it leads to: more/beter choices for consumers/firms lower prices of goods for consumers/firms higher profits/better worker wages imported input goods usually cheaper higher living standards for consumers costs are lower greater prosperity in poor countries Competitive Advantage: foundation concept of international trade. Answers how nations can achieve and sustain economic success/prosperity Superior features of a country that provide it with unique benefits in global competition comparitive advantages are derived either from natural endowments/deliberate national policies **In a firm: Distinctive Assets/competencies/capabilities that are developed or acuired Ex: Saudi Arabia has a natural abundance of oil petroleum products Ex: France climate/soil for producing wine Absolute Advantage: country should produce only those products in which it has absolute advantage or can produce using fewer resources that another country Comparative Advantage: Beneficial for two countries to trade even if one has absolute advantage in the production of all products. **Efficiancy in which it can product the product is the most important Ratio of production costs is key This pplies to all goods shows how countried use scarce resources more efficiently Limitations of Early Trade Theories: Fail to account for international transportation costs Govts distort normal trade / selectively imposing protectionism (tarrifs) or (subsidies) Services some cant be traded. Others can be traded freely over internet Factor Proportions Theory: Factor Endowments Theory each country should produce and export products that need high production Import goods that and don’t need production ** Leontief Paradox revealed that countries can export products that use less resources and be successful International Product Life Cycle Theory Each product and its associated manufacturing go through 3 stages of evolution: introduction inventor country enjoys a monopoly in manufacturing/exports. Ex: TV Set maturity Products manufacturing becomes standardized other countries start producing and exporting the product standardization manufacturing ceases in innovator country becomes net importor of the product. Totally under globalization cycle occurs quickly New Trade Theory economies of scale are an important factor in some industries for superior international performance. Even in absense of superior comparative advantage some succeed best as their volume increases Ex: commercial aircraft industry has very high fixed costs need high volume sales to achieve profit Critical Role of  Innovation in National Economic Success Innovation is KEY source of competitive advantage Firms innovate in 4 major ways: 1. new product/improve an existing product 2. new manufacturing 3. new marketing 4. new ways of organizing Many innovative firms in a nation leads to national competitive advantage Critical Role of Productivity in National Economic Success productivity is the value of the output produced by a unit of labor or capital it is a key source of competitive advantage for firms the greater the productivity of the firm, the more efficiently it uses its resources aggregate productivity is a key determinate of the nations standard of living Michael Porters Diamond Model: Sources of National Competitive Advantage Diamond Model Factor Conditions: quality and quantity of labor, natural resources, capital, tech, know-how, entrepreneurship, other production Ex: an abundance of cost-effective and well educated workers give china a competitive advantage in the production of laptops Related Supporting Industries: presence of suppliers, competitors, complementary firms that excel within a given industry Demand Conditions at home: strengths and sophistication of customer demand firm strategy, structure, and rivalry: the nature of domestic rivalry, and conditions that determine how a nations firms are created, organized, and managed Industiral Cluster suppliers/supporting firms from the same industry located within the same geographic area strong cluster can be sxport platform for a nation Proactive economic development plan employed by the govt. nurture/support promising industry sectors with potential for regional or global dominance Tax Incentives Monetary fiscal policies Rigorous educational syst em Investment in national infrastructure strong legal regulatory systems

Business Plan For The Chocolate Shop Marketing Essay

Business Plan For The Chocolate Shop Marketing Essay The confectionery industry in Pakistan is one that is growing and is promising for our business. This is due to the cultural changes and in the liking of our target market. Our marketing strategies include differentiation, creating customer awareness, increasing customer confidence and finally market development. These strategies aim to satisfy our marketing objectives and goals. Apart from these we have set objectives and strategies on a functional level for marketing research, customer services and the advertisement and promotion of our business. Our total investment is of Rs. 4590,000 out of which Rs. 1500,000 is a loan taken from the bank. The interest rate on this loan is 10%, and we plan to pay it off in a time period of ten years. The major problem involved in our business is that of an increase in interest rates and problems that we will have to face in regards with the location of the shop. Our main risk is associated with the competitors. Business Description Brand Name The chocolate shop Tagline of the company One Taste Is All It Takes General Description of the business Our business is that of confectionery chocolate which is customized. We will be opening one outlet by the name of the chocolate shop in either Y-Block in defence or Xinhua Mall. The chocolate will be processed after an order is placed according to the preference of the consumer. Different sizes, shapes, packaging and flavors will be available. The consumer will be able to choose their own blend of all of these. Product and services Semi sweet chocolate chips Milk chocolate chips Classic white chips Semi sweet chocolate baking bars Unsweetened chocolate baking bar Bittersweet chocolate baking bar Milk chocolate baking bar White chocolate baking bar Milk chocolate almond bars Crispy chocolate bars Blueberry and almond chocolate bars We also provide chocolates for special occasions in special packaging Boxed chocolates Holiday specials Corporate gifts Custom molding Fund raising Uniqueness of the product We are one of the very few chocolate manufacturers that make chocolate starting from the cocoa bean through to finished products. Throughout the process, we take special steps to ensure that our premium chocolate delivers our signature intense, smooth-melting chocolate taste. The uniqueness of our product lies in the fact that we make custom made chocolate with variations to the size, packaging and flavor according to the preference of the consumers Intensive quality assurance in the selection of cocoa beans means that we accept only the highest-quality beans. We reject as many as 40% of the beans that are offered to us. Beans that are not selected are sold to other manufacturers. In all of our chocolate product, we use a proprietary blend of cocoa beans that is refined to provide the companys distinct and intense chocolate taste. We roast the cocoa beans in-house to ensure the companys signature flavor profile is consistently maintained in all chocolate products.Because the nibs are fairly uniform in size, we have more control over the temperature and time, so we can get a more specific flavor. Other companies roast their beans before removing the shell, which requires over-roasting the outside portion of the bean in order to roast the inside. This could impart a burned flavor to their chocolate. Finally, we use an intensive refining process to ensure that its chocolate truly melts in your mouth! We have no grainy feel because we refine most of our chocolate flakes until they are 19 microns (human hair is 100 microns in diameter). Other mass market chocolates are refined to only 40 microns. Overview of the confectionery industry Chocolate and Confectionery industry has shown a satisfactory progress in recent years. The industry flourished under tariff protection and it has not only saved foreign exchange which would otherwise have been spent on the imports of such products but has also started earning the much needed exchange to the country. The vast Middle East market is open for the sale of chocolate and confectionery and Pakistan has all the potentials to capture this market. Export of chocolate products included sugar preparations, which increased from Rs.23.173 million in 1985-86 to 295.136 million in 1992-93. The sugar preparations included Pakistani jelly and jams exported in packed form. However, presently more than ten years later the trends have changed to quite an extent. Due to changes in culture and the people being exposed to media, there have been an inclination towards western confectionery which has increased by demand for chocolate confectionery. The Pakistan confectionery product category reached a value of $32.6 million in 2001. It is by far the smallest confectionery market in the Asia-Pacific region. Pakistan contributes less than one percent of the Asia-Pacific confectionery revenue. No single product category dominates the market. Standard grocers are the leading distribution channel, holding one third of the confectionery market revenue. Traditional grocers are the only other channel to capture a double-digit share. The remainder of the market displays a high degree of fragmentation Use this report to understand the key trends and issues in confectionery and assess the competitive landscape of the Pakistani confectionery industry. Goals and potential of the business Goals of the company include the following: To give our customers the best quality customized chocolate To gain the highest market share in the industry To gain consumer confidence and loyalty The company has high growth potential as the industry it is operating in is one which is growing and the willingness and buying power of the consumers is growing as well which will create high demand for our company. Moreover, corporations such as Multinational companies, banks e.t.c are now commonly using confectionery chocolates as gifts to their business clients as well consumers, this will also be of advantage to our organization and help it to grow. Marketing Research analysis Industry Analysis The industry that The Chocolate shop operates in is that of the confectionery industry which is a growing and an immensely popular industry having organizations such as Nirala, Gourmet and Patchi operating under it. The industry relies mainly on the changing lifestyle patterns and the population growth of the target group. Opportunity The opportunity of setting up a confectionery can be linked with the eating habits and demand of the people. People in Pakistan enjoy the traditional confectioneries very well and their demand is still extremely high on occasions such as weddings, birthdays, Eid and also in corporate clients, however recently there has been a cultural change in Pakistan. Now people are turning towards new lines and varieties of confectionery items. This major change can be seen in corporations mostly and now for weddings as well. Increase number of Outlets A rapid increase can be seen in confectionery outlets recently, this is a reflection of the increase in demand. The increase in the number of outlets have made such products more accessible to the consumers. Many organizations have opened small outlets near offices or other locations chosen specifically to maximize convenience for consumers. Consumer demand In Pakistan confectioneries have always been used as gifts on weddings and other occasions however now there is a higher demand for chocolate confectioneries on not only weddings but also on Eid and birthdays. There is a high and an increasing corporate demand for such confectionery items as now people want to deviate from the traditional sweets. Competitor Analysis Our chocolate shop will be competing with all confectionery shops in Lahore, however their main competitor will be Patchi as this organizations main product is chocolate as well. Other competitors are Nirala and Gourmet because they also serve confectionery items on weddings, birthdays, Eid e.t.c. Nirala has been in the industry the longest and many people of Lahore have a loyalty towards this brand. It has been used on weddings and other occasions. One of their strengths lie in their variety of packaging according to the occasion they cater to. Their packaging is quite diverse and comes in all sorts of sizes. They now also offer a sitting place for their consumer which has increased their demand a great deal because this is one of the feature which is not offered by any of their competitors. Gourmet on the other hand has also had an increase in consumer demand recently because of an increase in their product quality. There is a high demand for gourmet products on weddings, however it is not favorable amongst corporate clients. Patchi is the direct competitor of our business. They serve chocolate confectionery in different sizes and packaging. Their major clients are corporate clients and they serve to the upper class of the country due to their pricing. Our business will have a competitive advantage as it will be serving custom made chocolate, sized according to the consumers preference and it is also offering a sitting place in the shop. Moreover, we will also be serving for weddings, birthdays e.t.c. Target Market The population of Lahore is approximately 7,000,000 people. Our major target market will be the corporate clients of Lahore mainly and other adjacent cities as well. The trends in the corporations of Pakistan are now changing, corporations often present gifts in the form of chocolates to their consumer as well as their business clients. This trend is on an increase in the country. We will also cater for weddings in large packaging and other occasions such as birthdays and Eid. However this will be targeted towards the upper and the upper middle class of the country. Our target market will also largely include walk in clients who will purchase chocolate in small quantities as compared to the corporate clients or those catered for weddings. There is no age limit to the target market as Chocolate is a certain product that is liked by everyone. Market Size and trends The market size of our target market includes all of the upper class of Lahore and adjacent cities, all of the upper middle class and any person who could be a walk in customer. Apart from this we are serving to corporate clients which includes fourteen banks and other multinational organizations as well as the local ones. Marketing Plan An in depth analysis of marketing research will be conducted prior to making the marketing plan. Marketing of The chocolate shop will play a key role in the mobilization of targeted number of customers. Major marketing options include, site advertisement, cable ads and handbills among other traditional marketing channels. Before launch of the project, it is recommended that a research for understanding the dynamics of the targeted market should also be carried out, to design the products as well as the promotional strategy. The basic principle of marketing is to sell the right product, at the right price and promote it in the right place to the right people. However, there are other socioeconomic factors, which also affect the production, selling and consumption of foods. The success of marketing is often determined by the extent to which various socio-economic factors are considered. Business Situation As it has already been discussed above, the market for confectionery items are in a growing trend because of the increase in the demand and cultural changes in the country. The scope of the market is great as at the moment the only direct competition our business will be facing is Patchi and there is a high demand for confectionery chocolates within the corporate world. The distribution of our chocolate will be done through our own retail outlet, we will be implementing the strategy of forward integration. Our product will not be distributed to other retail outlets. All orders will also be places at our own shop. Our consumers would want value for their product and they will be given high quality products. The customers will be ranging from all age groups however we will be catering mainly for the upper class and the upper middle class, however a major target market of the business will be of walk in clients. Identification of problems and opportunities The major opportunity of our business is that it is operating in an industry which is growing and has high demand. Another opportunity is of the growing inclination of corporations towards the use of confectionery chocolates for purposes of gifts e.t.c. Our business will also be using state of the art technology for the chocolate making which will be made fresh after the order is places by the customer. The future of the confectionery industry also proposes many opportunities for our business, as the industry is offering a promising growth. This has occurred as a result of cultural changes and the increase in consumer income and spending power. Our business will be serving the needs of the consumers by making available to them customized chocolate which was initially not being catered to them by any source. However our organization will also be facing certain problems. The first issue to face is that of the entry of timing into the market. As the main decisive factors in this case are events and season, we will have to match the timings with these two limitations. For example weddings generally occur around winters in Lahore, therefore entering the market well before that would be a good idea. Another issue that would be faced is of the sustainability of the organization, it is not only important to be successful over a certain time period but the most difficult part is to be able to sustain this success and to be able to meet the changing requirements of the consumers. Another problem would be to see whether the location we will opening our shop at is accessible to a majority of our clients and can attract a large number of walk in customers. Marketing objectives This stage in marketing planning is indeed the key to the whole marketing process. The marketing objectives state just where the company intends to be; at some specific time in the future. To be most effective, objectives should be capable of measurement and therefore quantifiable. This measurement may be in terms of sales volume, money value, market share, percentage penetration of distribution outlets and so on. Some of the objectives of our business are as stated below: To increase sales by at least 10% each month To achieve a market share of 10% within the first 18months of operation to achieve atleast 75% customer awareness of our product in our target market within the first 6 months of operation To gain customer confidence within the first 12 months Marketing Strategies The marketing strategies are formulated in such a manner that they will assist in attaining the above marketing objectives Differentiation: this is the primary marketing strategy of our business. We will be offering a unique product that is not available in the market before. This strategy will be useful in increasing our sales objective and the market share objective Increasing awareness about our product is another strategy which will be used to achieve all three marketing objectives of our company. This will be done through effective marketing and promotional activities Customer confidence will be gained by taking in complaints from customers and handling them as the customers desire and also by providing customers with high quality Market development is another strategy which our business plans to follow after a certain time period of our establishment. We will be exploring new untapped markets in terms of geographical area to increase sales and market share. Departmental / Functional objectives Our functional objectives will be divided into the advertising and promotional objectives, customer service and market research objectives. Advertising and promotional objectives: build awareness to reach the customers and tell the market as to what we are what we offer Create interest in our consumers in order to make them visit the shop at least or to make a purchase to stimulate demand and increase the purchasing activity. Reminder advertising which will be used to maintain the interest and awareness of the consumers. Customer service objectives The main objective for customer services is to make sure that the complaints of the customers are heard and are taken care off. Market research To keep the business up to date with the changing demands of the consumers To keep the business up to date with the entry of new competitors To keep the business up to date with the strategies of the existing competitors To keep the business up to date with the technological innovations of the industry. Departmental / Functional strategies These strategies will be implemented in order to meet the above objectives. the advertisement and promotional objectives would be achieved through strategies involving effective advertisements through print and television mediums as well as bill boards. the reminder advertisement objective will be achieved by continuous effective advertisement, however it will not be on such a large scale as it will be at the time of launch. customer service objectives would be reached by having a 24 hour help line available to the customer for complaints and other queries. Market surveys will be conducted time to time in order to achieve the marketing research objectives Control of the Marketing plan In order to keep an effective control on the marketing plan periodic reviews will be held. On quarterly basis a review of the marketing plan will be held to see whether the objectives are being met and if the strategies are efficient or not. Feedback will be taken from not only consumers but also from the employees of the organization on the operations of the company and on the implementation of the marketing plan. The marketing plan will then be reviewed accordingly and changed if needed. Operations Organizational Plan Building a strong, lasting organization requires careful planning and strategy, in which organizational plan plays a vital role. Organization plan discuses the form of ownership and advantages and disadvantages of the new venture. Its further includes authority of principles and rules and responsibilities of all the major position of the business. In the organizational plan, developing the management team and form of organization are the foremost steps. In this the importance of employees, their loyalty and commitment to the organization and type of ownership is of greater concern to the potential investors as well as for the entrepreneur. Form of ownership There are three types of major legal forms of businesses or ownership. The three basic types are: Proprietorship Partnership Corporation These three basic types of businesses are compared with regard to ownership, liability, start-up costs, continuity, and transferability of interest, capital requirement, and management control, distribution of profits losses and attractiveness for raising capital. The new venture The Chocolate Shop is proprietor owned business. The owner is the individual who starts the venture and has full responsibility for all the operations. The owner may hire some personnel such as managers, advisors, and accountant etc, to assist in day to day working of the business. Liability of owners The proprietor is liable for all aspects of the business, which means no distinction is made between the business entity and the owner. This is known as unlimited liability in which owner has to satisfy any outstanding debts of the business, creditors may seize any assets the owner has outside the business. Cost of starting a business The financial cost of the business is mentioned in the financial plan. But here, the cost of starting the business refers to the legal fees and expenses incurred for the formation of the venture. In our new form of business which is based on the sole proprietorship, there are not many legal expenses involved compared to the other forms of ownership. The only legal fees required is the fees for trade name, which makes the cost of starting the business very low. Continuity of business Continuity of the business is one of the most important issues for the investors as well as for the suppliers and customers because investors are concerned about the investment, and suppliers and customers prefer to have long relationship with the business they are interacting with. The chocolate shop is a proprietorship business, in which continuity of the business depends upon the owner will to continue, and or otherwise lasts till the death of the owner. Where as, typically in Pakistan, business is continued by the successor of the owner. Transferability of interest In a sole proprietorship, the owner is completely free in the transferability of interest. The owner can sell any part or the business as pleased or when a good value is given. The chocolate shop`s owner has the same advantage of transferability of the interest being a sole proprietor. Capital requirement The need for capital during the early stages of the new venture can become one of the most critical factors in keeping a new venture alive. For a proprietor, any new capital can come only from loans by any number of sources or by additional personal contribution by the entrepreneur. In borrowing money from the bank the entrepreneur may need collateral to support the loan. Any borrowings from outside investors may require giving up some of the equity in the proprietorship. Which ever the source for fund is the owner or the entrepenure is liable to make the payments and a failure to do so can result in foreclosure or liquidation. However, even with these risks the proprietorship is not likely to need large funds of money to do business. The chocolate shop, has acquired Rs.1.5 million from the bank and the rest of Rs.3 million is invested by the proprietor himself/herself. To acquire the loan from the bank, the owner has to keep his/her house as collateral. Management Control In any new venture, the entrepreneur will want to retain as much control as possible over the business. In proprietorship, the entrepreneur has the most control and flexibility in making business decisions. Since the entrepreneur is the single owner of the venture, he or she will be responsible for and have sole authority over all business solutions. Mean there is a centralized chain of command in the shop. Distribution of profits and losses The chocolate factory is single owner or sole proprietor based business, therefore all the profits and losses are received by the owner. Attractiveness of raising capital The ability of proprietor to raise capital depends on the success of the business and the personal capability of the entrepreneur. Primarily because of the problem of personal liability raising capital is a difficult task. Tax attributes for proprietorship In proprietorship taxable year is usually a calendar year and taxes are deductible on the income generated by the proprietor business. Organization cost is non-amortizable and capital gains are taxed at individual level. A deduction is allowed for long-term capital gains and capital losses are carried forward indefinitely. For the initial organization or commencement of new business, results in no additional taxes for individual. Tax issues for proprietorship The proprietor has some tax advantages that there is no double tax when profits are distributed to the owner and that there is any capital stock tax or penalty for retained earnings in the business. Authority of principle The main authority of principle in the chocolate shop is with the C.E.O that is chief executive officer, who is responsible for the entire major decision making. Main functions of the C.E.O are: Reviewing operating and capital budgets Developing longer-term strategic plan for growth and expansion Supporting day to day activity Resolving conflicts Organogram C.E.O Manager Production Department Sales Department Cashier/Accountant Salesman Salesman Store Keeper Chocolate Maker Chocolate Maker Roles And Responsibilities Of Management C.E.O:This diagram shows that at the top of the hierarchy there is a C.E.O who is the sole proprietor of the business .He the is the only owner of the business his job basically would be to have an overall look at functions of the business .It is a centralize chain of command. As the sole owner of the business will be taking all the major decisions at the top. All the employees of the business would come under his command. Manager: As the name suggests the manager is responsible for managing the resources in the best possible way and give the business its best possible outcomes. Manager takes into account the performance of the sales and production department. The manager is answerable to the CEO regarding the feat of the two departments. The manager also assesses the performance of the workers in the lower levels of hierarchy. Sales Department: Cashier/accountant: The cashier looks after the cash flows (both inflows and outflows) of the business. The person also maintains the accounts of the company, recording its sales, revenue, expenses etc of particular periods. A specialist is required for the job because of the importance and complexity of the task. Salesperson: The primary function of this salesperson is to generate and close leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. The successful questioning to understand a customers goal, the further creation of a valuable solution by communicating the necessary information that encourages a buyer to achieve his goal at an economic cost is the responsibility of the sales person. Production Department Store keeper: This is a job in which the concerned person has to keep all the records of the inventory and the raw material. He has keep track of every thing which comes and goes from the store. He will report directly to the manager of the daily flows. He will recommend how much and when the raw material is need. Chocolate Maker: This person will handle all the chocolate making process. He will handle all the machinery and the chocolate making process. He is basically a trained professional an artist in his field . He will design and make the chocolate according to the taste of the customer. Financial Plan Total Investment Break down of Initial Investment (Rs. per month) Rent 60,000 x 6 = 360,000 Salaries 80,000 Raw material 300,000 Packaging 150,000 Furniture 600,000 Transportation 600,000 Interior 1500,000 Machinery 1000,000 Rent will be paid six months in advance, totaling Rs. 1200,000. Salaries are a total of Rs. 80,000. Rs. 20, 000 of these would be paid to a manager, Rs. 15000 each to the employees hired for the making of the chocolate and Rs. 5000 each to three other employees who would be taking orders and serving. Products would be sold on a price of Rs. 200 per 100gm of Chocolate. Paid in cash 3090000 Loan from bank 1500,000 Total 4590,000 Income statement Advertisements Advertisements in the income statement are the highest in the first month because that is the starting month so investment in advertisement needs to be higher. It reduces in the summer and increase again October onwards. Depreciation Depreciation is calculated on furniture as 5000, it has zero salvage value and the useful life is 10 years. Machinery has a salvage value of 350,000 and a useful life of 10 years hence the depreciation is Rs. 7083.3. Interest expense The interest rate on the loan is 10% and the loan is to be given back in a period of 10 years and is paid monthly. Jan Feb March Apr May June Sales revenue 1400000 1800000 1600000 1600000 1600000 1600000 CGS 630000 810000 720000 720000 720000 720000 gross profit 770000 990000 880000 880000 880000 880000 Operating expenses salaries 80,000 80,000 80,000 80,000 80,000 80,000 Utility bills 100,000 100,000 100,000 100,000 100,000 100,000 Maintenance 10,000 10,000 10,000 10,000 10,000 10,000 Misc expenses 5,000 5,000 5,000 5,000 5,000 5,000 Advertisement 150,000 50,000 50,000 50,000 50,000 50,000 Depreciation on furniture 5,000 5,000 5,000 5,000 5,000 5,000 depreciation on machinery 7,083 7,083 7,083 7,083 7,083 7,083 interest payments 20,343 20,343 20,343 20,343 20,343 20,343 rent 360,000 transportation 615,000 15,000 15,000 15,000 15,000 15,000 raw material 300,000 300,000 300,000 300,000 300,000 300,000 packaging 150,000 150,000 150,000 150,000 150,000 150,000 total operating expenses 1,802,426 742,426 742,426 742,426 742,426 742,426 Profit before tax -1,032,426 247,574 137,574 137,574 137,574 137,574 Tax( 30%) -309727.9 74272.11 41272.11 41272.11 41272.11 41272.11 Net Income -722,698 173,302 96,302