Human Resources Management 4 Essay Example | Topics and Well Written Essays - 1750 words

Human Resources Management 4 - Essay Example afterward implementing the policy of casual mark policy, Digital Device started to face few issues. The employees behavior became more casual with the clients resulting in complaints to the sales manager. The Casual dress should be allowed but there should also be certain rules and regulations with respect to casual dressing among the employees. The policy should be revised in accordance with the HR manager and list of approved and not approved items. However after implementing the casual dress policy and revising it again after few months aptitude not be acceptable for the employees and they might not agree to the revised list as to which of the type of casual dress to be followed.It is very of the essence(p) to communicate the changes that are to be taken place in the organization to its respective employees. Here the HR department plays a vital role as it is the duty of the HR to communicate the revised policy to the employees. The r evised policy stomach be communicated personally to each department by conducting meetings with the respective teams by the HR head. This might have a positive impact on the employees rather than just sending mails and listing the revised policy in the get word board.The policy of losing the job if one found to be guilty of smoking or stealing has been practiced in most of the organizations. The new policy brood cigarettes as an illegal narcotic and aims to adopt a free smoker free sketchplace. If the policy is mentioned in the contract before joining the organization it can be viewed to be legal and very much ethical. The organizations aim to provide with a healthy working area and also ensuring proper health of the employees.At Health Unlimited each of the employees is required to sign a statement stating that the employee is a non smoker and will not smoke either at work or away from work. It was also stated that if anybody found guilty would be discharged from the job.

Nuclear Power Future Essay Example | Topics and Well Written Essays - 500 words

Nuclear Power Future - Essay ExampleAs nuclear fuel is free from carbon emissions, there are slight ethical issues associated with the nuclear power. Farming outside the nuclear power plant produces the normal yield. There is no impact of nuclear power plant on the surroundings. The unit of the nuclear power is much less as compared to the oil or gas human footd power (Harrison & Hester, 2011, p44-58). The cost of the fuel required to perform the nuclear power plant is much lesser as compared to the coal, oil or gas. Other alternate energy resources are less capable of providing the base load. The plans of the Hitachi Company to develop the nuclear power in Britain are quite clear to support the sustainable development in the region. The lessons from the Japan are salubrious learned by the company and the company ensure that no further accidents will happen in Britain. The company ensures that the Britain will lead the renewable subject matter by 2018.A large investment should b e welcomed to develop nuclear power. In most of the developed and under developed countries, the power crises are lift due to the massive industrialization in the past few decades. It is nearly impossible to predict the approaching of power genesis regarding the coal, oil or gas, as the fossil fuel resources are shortening day by day and the demand for power is increasing day by day. To maintain the economic and hearty stability, there is need to develop the power generation systems that are capable of generating more power to meet the current as well as future power demands (Nuclear energy Agency, 1993). Britain is considered to be emitting major amount of fumes while generating electrical energy in the region. After the installation of the Nuclear power, the emissions regarding the power generation will reduce significantly and thus the motto of environmental protection will be fulfilled.As the project is supposed to create 6000 jobs while constructing the from each one plant and 1000 permanent jobs for the operations of

Ethical Leadership Martin Luther King Jr Essay Example | Topics and Well Written Essays - 1750 words

honourable Leadership Martin Luther King Jr - Essay ExampleEthical leadership is ab issue the quality of a leader to fight for the ethics which is applicable for everybody. This is really shown in the life of Martin Luther King Jr., whose says that In struggling for military man dignity the oppressed people of the world must not allow themselves to become bitter or indulge in scorn campaigns. To retaliate with hate and bitterness would do nothing but intensify the hate in the world. Along the way of life, someone must have sense enough and pietism enough to cut off the chain of hate. This suffer be done only by projecting the ethics of love to the center of our lives There are two types of laws there are just laws and there are unjust laws...What is the difference between the two...An unjust law is a man-made code that is out of harmony with the moral law. The ultimate test of a man is not where he stands in moments of comfort and moments of convenience, but where he stands in moments of challenge and moments of controversy. (quietspaces.com n.pag)His use in life was to give the true meaning of freedom and he had taken the path of non-violence to achieve it. He had studied the life great leader Mahatma Gandhi, who also achieved freedom for his nation through the means of nonviolence. With this ethical means he fought against discrimination and racialism particularly, towards the black or the Negro community in United States. He fought for their rights by telling the suppressing community the true meaning of freedom that is equality in all human being without the discrimination in color of skin.Martin Luther King even while he was a student he was known for his leadership qualities and was rewarded several times. He was elected president of the major(postnominal) class and delivered the valedictory address he won the Pearl Plafker Award for the most outstanding student and he received the J. Lewis Crozer fellowship for graduate employment at a universi ty of his choice. Dr. King was awarded honorary degrees from a number of colleges and universities in the United States and several other foreign countries (Brown et al. n.pag 2006). Martin Luther King also followed his fathers and grandfathers steps and entered the Christian ministry. He was ordained in February 1948 at the age of nineteen at Ebenezer Baptist Church, Atlanta, Georgia and became Assistant Pastor of Ebenezer. Soon after the completion of his studies at capital of Massachusetts University, he accepted the call of Dexter Avenue Baptist Church, Montgomery, Alabama (Brown et al. n.pag 2006).Psychological research has discovered the following positive personality variables associated with strong leadership includes warmth, friendliness, self-confidence, office to stand up to pressure. These researches have also found that the absence of the negative qualities of arrogance, hostility, boastfulness, egotism, and passivity are correlated with positive leadership (Romney, 19 96). If we look into the life of King, it can be said that he is among the top leaders of the world. He was always a strong worker for civil rights for portions of his race as a member of the executive committee of the National Association for the Advancement of Colored People. The Montgomery Bus Boycott, in 1955 led by King lasted for 382 days and was among ones in which he was arrested, his home was bombed, he was subjected to personal abuse. King was arrested during this campaign, which ended with a United States Supreme Court decision

The Gender of the Travestis Essay Example | Topics and Well Written Essays - 500 words - 1

The Gender of the Travestis - Essay ExampleInteresting a topic, Kulick undertakes to study the lives of the travestis and their general take on the question of sexual urge identity. So to what gender do travestis belong to? Kulick, through a series of illustrations and interviews with volunteer travestis, gives comprehensive details about the travestis. Surprising as it can be for a person ever-changing his or her gender, to the travestis, it is a norm. Most people who hear of travestis the first time think of them as being abnormal. They are somewhat an in-between gender, completely confounded from the normal life and perhaps they live in a world of their own, away from reality. Kulick candidly suggests We see reality like it is, they travestis dont. They live in a world of fantasy. (p.94). Kulick finds out that travestis are not generally accepted in their homes or families. Once they start on the journey to becoming travestis, oftentimes at the age of as low as ten, they are no longer wanted by their parents. Their spirit growing stronger, most aspiring travestis testament choose to leave their families and go out on their own, and some are forcibly expelled (p.59). Kulick gives an example of Keila, a travesti who chose to leave their home at the age of thirteen (p.59) and went to live al wholeness, this time too choosing a female name. This tells about the pains the travestis are determined to endure to be fully free, or else to belong to the gender of their choice. That is not the end Travestis consider that males are males and females are females because of the genitals they possess. (p.193). This derives a strong conviction, on their part, that they should retain their genitals it does not matter the genital one possesses and at least they respect Gods thus creation of genitals (p.193) so the travestis never remove their penises.

Internal Audit Function and Fraud Detection in Government Essay Example for Free

Internal Audit Function and Fraud Detection in Government EssayCHAPTER ONE 1. 0Introduction This chapter pass on cover the background of the study, the statement of the problem, the purpose of the study, the objectives, the research questions, and the scope, the significance of the study and the structure of the report. 1. 1Background of the Study According to Hector Perela, (2009), Internal auditing function with other(a) preventative mechanisms like financial reporting and external audit to helps maintain cost-efficient contracting between owners and managers. It is designed by government agencies to add value and purify organizational performance. It helps organizations accomplish their objectives by bringing a systematic, disciplined approaches to evaluate and improve the effectiveness of risk management, control and governance processes. Internal audit helps organizations to delay that financial and other records are reliable and complete. As well as ensuring that man agement adheres to policies and procedures for orderly and efficient conduct of the business, proper recording and safeguarding of assets and resources. The purpose of congenital audit as far as the organization is concerned is to get accounting errors corrected and control weaknesses eliminated.The most testing time for the internal listener is the report he/she writes to achieve this end. No precise legal definition of fraud exists many of the offences referred to as fraud are covered by the stealing Acts of 1968 and 1978. Generally, the term is functiond to describe such acts as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, concealment of material facts and collusion. For practical purposes fraud may be defined as the use of deception with the intention of obtaining an advantage, avoiding an obligation or causing loss to another part. Internal Audit, University of Birmingham, Edgbaston, Birmingham, B15 2TT, UK) On one hand, fraud detection in government agencies involves employees or managers of the victim organization (commercial angles news letters 2001), the most effective tools for fraud detection are internal audit review, specific investigation by management, employee notification, and accidental discovery. Fraud detection helps Management to address its responsibility through development of an appropriate design of the system of internal control and the effective operation of that system. legion(predicate) fraud prevention and detection techniques are now utilized to reduce the direct and indirect costs associated with all forms of fraud. These various techniques include but are not limited to fraud policies, telephone hot lines, employee reference checks, fraud vulnerability reviews, vendor contract reviews and sanctions, analytical reviews , password protection, firewalls, digital analysis and other forms of software technology, and discovery sampling (Thomas and Gib son, 2003).Government departments implements the ideas and decisions of executive government in a particular area of governance. Each department is led by a minister in charge or commissioner, and the main work of the department is determined by legislation. Despite the internal audit function, many government agencies lead astray to detect fraud for example loss of huge monies in NAADS. The National Agricultural Advisory Services (NAADS) is a Ugandan government agency created in 2001 to improve rural livelihoods by increasing agricultural productivity and profitability.

Implications of Information Technology in Developing Countries Essay Example for Free

Implications of Information Technology in Developing Countries EssayThe survival and growth of organizations in an increasingly luxuriant environment would depend upon effective usance of instruction applied science for aligning the organizational structure with environmental preferences and for creating symbiotic interorganizational structures. How drive out IT help the organizations in responding to the ch on the wholeenges of an increasingly complex and un authoritative environment? How can IT help the organizations achieve the flexible organization structure? These atomic number 18 the topics that remains to be a matter of head word for many developing countries. Although Information technology is still a . b lose box . technology for developing countries, it is largely applied in industrialised countries to the sepa yard of the majority of developing countries. This paper will filter out to illuminate the aspects and the impact of Information Technology in managing organizational change and its implications for developing countries.1. Introduction The rate and magnitude of change are rapidly outpacing the complex of theories. frugal, social, and philosophical on which public and private decisions are based. To the extent that we continue to view the world from the military position of an earlier, vanishing age, we will continue to misunderstand the developments surrounding the transition to an information society, be unable to realize the entire economic and social potential of this revolutionary technology, and pretend making some very serious mistakes as reality and the theories we use to interpret it continue to diverge..-Arthur Cordell(1987).We have modified our environment so radically that we moldiness modify ourselves in order to exist in this new environment..Norbert Wiener(1957) The survival and growth of organizations in an increasingly turbulent environment would depend upon effective utilization of information technology for al igning the organizational structure with environmental preferences and for creating symbiotic interorganizational structures. How can IT help the organizations in responding to the challenges of an increasingly complex and uncertain environment? How can IT help the organizations achieve the .flexible. organization structure? These are the topics that remains to be a matter of question for many developing countries. This study will try to illuminate the aspects and the impact of Information Technology in managing organizational change and its implications for developing countries.2. Aspects of Information Technology Information technology (IT) may be outlined as the convergence of electronics, computing, and telecommunications. It has unleashed a tidal wave of proficient innovation in the collecting, storing, processing, transmission, and presentation of information that has not only if transformed the information technology sector itself into a highly dynamic and expanding field o f activity creating new markets and generating new investment, income, and jobs- but also provided other sectors with to a greater extent rapid and efficient mechanisms for responding to shifts in demand patterns and changes in multinational comparative advantages, through more(prenominal) efficient outturn processes and new and improved products and services (e.g. replacing mechanical and electromechanical components, upgrading conventional products by creating new product functions, incorporating skills and functions into equipment, automating routine work, making technical, professional, or financial services more transportable).The development of IT is intimately associated with the overwhelming advances recently accomplished in microelectronics. Based on scientific and scientific breakthroughs in transistors, semiconductors, and integrated circuits ( splinters), micro-electronics is affecting every other branch of the economy, in terms of twain its present and emergin g employment and skill requirements and its future market prospects. Its introduction has resulted in a drastic fall in costs as well as dramatically improved technical performance both within the electronics industry and outside it (Malone and Rockart, 1993). The continuous rise in the number of features on a single micro-electronic chip has permitted littleer assembly costs for electronic equipment (each chip replacing many discrete components), faster switching speeds (thus faster and more stringy computers), and more reliable, smaller, and spark equipment (fewer interconnections, less power and material).Similar dramatic falls in costs occurred in the transport and steel industries in the nineteenth century and in might in the twentieth, associated with the emergence of the third and fourth Kondratiev cycles, respectively. The potential effects of microelectronics are thus very far-reaching, for its use in production saves on virtually all inputs, ranging from skilled and un skilled labor to energy, materials, andcapital. All sectors of the economy have been influenced by the development of IT applications information technology opens up immenseer opportunities for the exploitation of economies of scale and scope, allows the more flexible production and use of labor and equipment, promotes the internationalistization of production and markets, offers greater mobility and flexibility in capital and financial flows and services, and is frequently the precondition for the creation of innovative financial instruments.Information system developments are invariably universe applied to increase the productivity, quality, and efficiency of finance, banking, business management, and public administration. In manufacturing, and to some extent in agriculture, many processes have been automated, some requiring highly flexible, self-regulating machines, or robots. The engineering industry has been transformed by computer-aided design and three-dimensional compu terized screen displays. The pace of technological change in IT will most likely accelerate the already observable growth in the interdependence of international relations not further economic or financial, but also political and cultural. National economies have become more susceptible to the effects of policy decisions taken at the international take aim, and domestic economic measures are having increased impacts on economic policies of other countries.World markets for the white plague of similar goods are growing, and so are common lifestyles crosswise national borders. The advance of telecommunications and computerization has recently enabled large companies to use information systems to transmit technical and economic information among numerous computer systems at various geographical locations, subjecting widely dispersed industrial plants to direct managerial control from a central location this affects the international division of labor and production and internationa l share, changing the patterns of industrial ownership and control, altering the competitive standing of individual countries, and creating new trading ruinners. It is the integration of functions that confers on information technology its real economic and social significance.More than just a gradual and incremental technological evolution leading to improved ways of carrying out traditional manufacturing processes (i.e. simply the replacement of new technologies for existing systems and the rationalization of standard activities), IT offers the probability for completely new ways of working through systems integration. Rather than applying one item of new technology to each of the production functions now performed at distinct stages of the production process, i.e. design, production, marketing, and distribution (in what could be called stand-alone improvements or island automation), having evolved in to new technologies, i.e. endeavor Resource prep systems, IT offers the po ssibility of linking design to production (e.g. through programmable manufacturing, measuring, and testing equipment responding to the codification of design), planning and design to marketing and distribution (e.g. through a variety of computer help and databases that sense and collect changing market trends), production to distribution (e.g. by automatically incorporating orders and commissions by customers and suppliers into the production process), etc.The complete integration of all these production subsystems in a synergistic ensemble is still more a long-term trend than a reality, but use of automated equipment to link together individual items of equipment belonging to hitherto discrete manufacturing operations has already made IT a strategic issue for industry. More technical advances are expected curtly in the automation of telecommunications and the linkage of computers by data transmission that will enhance the possibilities of systems integration. Such programmable a utomation, or computer-integrated manufacturing (CIM), has the capability of integrating information processing with somatogenic tasks performed by programmable machine tools or robots. CIM offers radical improvements in traditional problem areas confronting manufacturers, such as trim down lead time for existing and new products reduced inventories more accurate control over production and better quality production management information increased utilization of expensive equipment reduced budget items costs improved and consistent quality more accurate forecasting improved delivery performance (Miles et al., 1988). These features characterize information technology as a new technological system, in which far-reaching changes in the trajectories of electronic, computer, and telecommunication technologies converge and offer a range of new technological options to virtually all branches of the economy.Moreover, IT forms the basis for a reorganization of industrial society a nd the core of the emerging techno-economic paradigm. The reason for the pre-eminence of the new technological system clustered around information technology over the as new technological systems clustered around new materials and biotechnology is the fact that information activities of one kind or another are a part of every activity within an industrial or commercial sector, as well as in our working and domestic lives. Almost all tillable activities have high information intensity (some involve little else, such as banking or education).Further more, along with the premier of internet technology and e-business architectures powerful concepts like inventory control, supply chain management, customer relationship/service management, and management resource planning through the internet under the name of Enterprise Resource Planning have enabled IT to be capable of offering strategic improvements in the productivity and competitiveness of virtually any socio-economic activity. Oth er than industrial or commercial sectors, information technology is also applicable in education sector and in public institutions. Thus, Information Technology is universally applicable. Probably only a fraction of the benefits derived from information technology-based innovations have so far been reaped and the rest remain to be acquired in the next decades. The shift towards systems integration to capitalize the full potential benefits of IT requires considerable adaptations, learning processes, and structural changes in existing socioeconomic institutions and organizational systems.The tradition in most current organizations is still to operate in a largely disintegrated fashion, reminiscent of the Ford-Taylorist management approaches that dominated the fourth Kondratiev cycle high division of labor, increasing functional specialization/differentiation and de-skilling of many tasks, hardened manufacturing procedures and controls, long management hierarchies with bureaucratic de cision-making procedures and a mechanistic approach to performance. Under these conditions, use of IT is restricted to piecemeal technology improvements. By contrast, information technology-based systems offer organizations the opportunity of functional integration, multi-skilled staff, rapid and flexible decision-making structures with greater delegation of responsibilities and greater autonomy of operating units, a more flexible and organic approach enabling a quick adjustment to changing environmental conditions. (Piore and Sabel, 1984.)But this means that information management skills require the ability to make choices about the optimal arrangements for particular situations foreign earlier generations of technology, IT offers not a single best way of organization but a set of more or less appropriate alternate organizing, staffing, and managing options that may be adopted in different organizational contexts. There is no determinism in the way information technology influenc es the socioinstitutional framework. Therefore, organizational innovation is a crucial part of the requirement for firms to adapt to survive (Miles, 1988). Unfortunately, this is true for all the institutions as well. Further, it is even more dramatic for the organizations in developing countries because of not being able to properly adapt to this so-called .black-box. technology. No matter how frustrating it is interpreted for these countries, IT still has significant impact on their development.Although socio-economic structure of these countries resists organizational or institutional changes, the complex interrelations between these changes and information technologies have significant implications for the way IT does and will affect the societies and economies of developing countries. As a matter of fact, the negative and controlling potential impacts of IT on these countries are a matter of great controversy among economists and politicians. The main short term issues usually discussed are the potential erosion of the comparative advantages of low labor costs, particularly in relation to assembly facilities, and the effects of automation, particularly on internal markets and international competitiveness. Implications of information technology for those countries hold great importance.3. Implications for Developing Countries The first direct effect of the micro-electronics revolution was the location of production for export in third world countries. While production of mainframe computers keep to be fixed largely in industrialized countries, production of smaller computers and of microelectronic devices, more subject to price competition, was shifted to low-wage locations, mainly in East Asia, where countries presented low wage costs as well as political stability, a docile labor force, and government incentives. Location of production for local and regional consumption followed, but the countries concerned were mainly middle income three quarters of US investment in third world micro-electronic industries was concentrated in 11 countries, viz. the four Asian dragons, India, Thailand, Malaysia, the Philippines, Brazil, Mexico, and Colombia (Steward, 1991).Export-oriented investments in these countries were associated more with direct foreign investment from larger firms in industrialized countries than with firms producing for the local market on the other hand, licensing was more associated with smaller firms (Tigre, 1995). The automation of production decreases the relative importance of labor-intensive manufacturing and cost of labor, thereby eroding the competitiveness of low labor costs. For instance, automation led to a sharp decrease in the difference between manufacturing costs of electronic devices between the United States and Hong Kong in manual processes, manufacturing costs were three times higher(prenominal) in the United States, and the introduction of semi-automatic processes made the difference practically dis appear (Sagasti, 1994). Equally, the expansion of automation in Japan has contributed to a reduction of Japanese investments in the Asia/Pacific region involving firms in electronics, assembly separate, and textiles (Sagasti, 1994).The trend to increasing systems optimization and integration is most likely to induce large producers in industrialized countries to produce back a significant share of their production located in developing countries (offshore production). This movement has been called comparative advantage reversal. As integration increases, with functions previously obtained by assembling pieces being incorporated in the electronic components, value-added is pushed out of assembly processes into the components themselves and upwards towards servicing. In addition, the growing technological complexity of electronic devices increases the value of the parts manufactured by firms located in industrialized countries The amount of value-added obtained in offshore assembly h as thus been constantly decreasing (Sagasti,1994).Global factories constructed in locations of least cost, oftentimes at a considerable distance from final markets, were economically worthwhile because labor was one of the major determinants of costs. Technology and rapid responsiveness to inconstant local markets are becoming more important components of competitiveness. The reduction of product cycles due to the growing resistance to obsolescence of programmable machines and equipment has led to a concentration of manufacturing investment in capital-intensive flexible manufacturing, further adding to the erosion of the comparative advantages of developing countries. The assembly of systems will probably continue in some developing countries that have adopted contraceptive legislation for local production targeted at particular market segments (e.g. Brazil), although this is changing very rapidly (Steward, 1991).The types of equipment produced under these circumstances are used largely in internal markets and are hardly competitive on the international level they tend to be far more expensive than comparable equipment available abroad, and often their installation and use are also more costly because of expensive auxiliary installations, under-use, and lack of management skills. Nevertheless, they may at least provide the ground with the capacity to follow the development of information technologies more closely. In other countries, assembly of equipment is taking place from components bought practically off the shelf, but as the level of hardware integration and the amount of software incorporated into the chips (firmware) grow, valueadded will be taken away from the assembly process, reducing or eliminating its economic advantages.The introduction of microelectronics requires certain new skills of design, maintenance, and management, as well as complementary infrastructural facilities such as reliable telephone systems and power supplies. Deficiencies i n these factors prevent the widespread adoption of information technology in developing countries (Munasinghe et al., 1985). The more advanced developing countries, with a wider basis of skills and infrastructure and a more flexible labor force, may be in a better position to adopt IT and to increase their productivity and their international competitiveness. But the less developed countries, with inadequate skills and infrastructure, low labor productivity, and lack of capital resources, will find it difficult to adopt the new technologies they are likely to suffer a deterioration in international competitiveness vis--vis both industrialized and the more advanced developing countries (Stewart et al., 1991).Quality, too, requires an adequate level of skills, infrastructure, and managerial know-how that is generally lacking in developing countries. This greatly reduces the synergies, number of options, faster responses, and more informed decisions that can be implemented in the firm by the optimization of the systems performance. In turn, the composition of the labor force existing within firms located in industrialized countries will further improve their systems performance and further reinforce the advantages derived from automation. The proportion of the labor force employed in production is constantly decreasing in the industrialized countries, implying that performances at the systems level and innovation, not manufacturing, are becoming the key to profit, growth, and survival (Sagasti, 1994).Like biotechnology, information technology is a proprietary technology, vital technical information regarding design engineering specification, process know-how, testing procedures, etc., being covered by patents or copyrights or closely held as trade secrets within various electronic firms from industrialized countries. Many companies in the software area do not patent or copyright their products because it entails disclosing valuable information, and firms are gene rally reluctant to license the more recent and advanced technologies. Therefore, technology transfer takes place mainly among established or important producers, hindering the recover to developing countries. Moreover, the main issue facing developing countries is not so much the access to a particular technology but to the process of technological change, because of the dynamism of this process. Sagasti implies this issue in the book The Uncertain Guest science, technology and development (1994) that recent trends in inter-firm relationships seem to indicate that this access takes place basically through the participation in the equity of the company holding the technology.

Starbucks External Environment

Starbucks External EnvironmentThis report is prepared for Starbucks hot chocolate Company Starbucks by a Specialist Marketing Consultant, to analyse the strategical position for Starbucks in the Specialty Coffee Indus accent. It volunteers a summary of all the major findings and, explores various strategic options and recommendations for Starbucks in cabaret to increase and maintain its competitive advantage within the application.Starbucks is a global leading brand, well k right awayn for its specialization drinking chocolate. The umber house does non yet sell high-quality deep browns, but besides Italian style beverages, cold beverages, complimentary food items, premium teas and coffee-related accessories. It has further retained its competitive advantage by selling packaged coffees and teas, ready-to-drink beverages, ice creams and many approximately otherwise products in other sell stores such(prenominal) as super commercialises through licensing relationships.Key FindingsStarbucks is facing various issues, nearly of which includeMaintaining the Starbucks Experience for clients and not being seen as just a money making machineStore ExpansionCompetition from fast-food irons and other specialty coffee retailersGenerating more hireLowering input costsKey RecommendationsBased on the strategic findings, the report outlined several recommended strategic options, the mains ones of which areTo improve the subliminal and express aura of Starbucks by supporting more good causes and paying its proper taxes.To increase revenue at trim back costs, Starbucks must try and search for more licensing relationships and expose the brand further.Existing stores could attract more customers, particularly aft(prenominal) the morning peak times by offering non-coffee beverage options or products for specific groups such as retired people.The recommended policies will help to enhance and strengthen Starbucks market share in the specialty coffee patience.Backg round Information on Starbucks Coffee Company (Starbucks)Starbucks was incorporated in the year 1971 by its founding directors Jerry Baldwin, Zev Siegl and Gordon Bowker. The Company was set up to operate as a roaster and retailer of whole bean and ground coffee, tea and spices together with coffee making equipment in Pike Place Market in Seattle, cap (Starbucks 2013b).In the year 1987, the original protesters sold the Starbucks chain to former employee Howard Schultz, who is now the current Chief Executive Officer (CEO) of Starbucks. Schultz re-branded his already existin II Giornale Coffee outlets as Starbucks and quickly began to expand (Grant 2010) as he believed thatFrom the beginning, Starbucks set out to be a distinguishable kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection (Starbucks 2013a).Starbucks has truly essential a unique brand experience, one which is the most respected and acknowledge aro und the world (Starbucks Annual Report 2012). Today, it is known to be one of the gargantuanst and best established American global coffeehouse chains (Grant 2010). It has grown to turn out over 20,800 stores in over 60 countries, with the United States having the highest number of stores, followed by Canada. The UK has approximately 806 stores. However, countries like India, the second most populous country in the world, has only circa 8 stores (Loxcel Starbucks 2013).Critical Evaluation of the door guard Five Forces ConceptAll organisations need to understand the dynamics of their industries and markets in order to compete effectively and intensively in the market place.An American management writer Michael Porter came up with a framework called Porters Five Forces (Porter 2008). The framework abstract the attractiveness of an organisation and or/industry structure, determines the main impertinent competitive threats, and assesses the extent to which the five forces are releva nt to the organisation and/or industry (Hollensen 2003Purcell 2013).The five fundamental competitive forces include (1) Rivalry, (2) Buyer Power, (3) Threat of Entry, (4) Supplier Power and (5) Threat of Substitutes (Porter 2008) (Figure1 Porters Five Forces modeling). These five forces, as explained above, aid an organisation to understand two strengthsThe current competitive built in bed and,The strength of a position it would like to move into (Purcell 2013).Michael Porter simplified the micro-economic theory into the above five major influences. Each of these influences take into account demand and supply, corresponding products as well as substitutes, the relationship between volume and production and the cost of production, and the structure of the market such as oligopoly, monopoly etc. (Grundy 2006Porter 2008).Apart from that, the value of information abstracted from the Framework analysis, assists to fuel three aspects of corporate planningStatistical analysisThe attract iveness and profitability of an organisation/industry can be fixed by victimisation Porters Five Force Analysis, thereof supporting decision making on whether to enter/exit from an industry or market segment (Porter 2008).Furthermore, the framework considers and takes into account the impact of competitive forces on the organization (RAPIDBI 2012) itself versus impacts on its competitors (Ketels 2006). Due to the availability of unalike resources and levels of competences, the competitors may agree different reactions when there is a change in competitive forces, hence influencing the structure of the whole industry (Grundy 2006Ketels 2006).Dynamical AnalysisA combination of two Porters Five Force Analysis and a PEST- Analysis (Political, Economical, Social, Technological), will disclose clues on how attractive the organisation/industry will be in the emerging (Porter 2008). This is because a change in Political, Economical, Socio-demographical and Technological aspects of or ganisations/industry can be influential on the five competitive forces and, hence will impact on the industry structure (Karagiannopoulos et al. 2005).Analysis of OptionsImprovement of an organisations own competitive position can be influenced by having some knowledge on both the compass stay of intensity and power of competitive forces (Recklies 2001). A upstart strategic direction can be derived from this such as new positioning in the market and differentiation for competitive products (Porter 2008).Accordingly, Porters Five Force Framework allows an organization to analyse the market structure and competitive situation in a more magisterial and structured way (Recklies 2001). Once all relevant forces for that particular market are identified and analyzed, managers can find options that influence these forces, subject to the organizations interest (Grundy 2006Ketels 2006Recklies 2001). juvenile research has shown that Porters Five Force Framework has got both strengths and w eaknesses when used in todays dynamic environment, the main weakness highlighted has been the historic nature of its development (Grundy 2006). Cyclical proceeds in the 80s showed that the global economy had been fairly stable and predictable, compared to the current economy (Grundy 2006).Several limitations to the Porters Five Force Framework have been shown asFrom the economic point of view, the framework is under the presumptuousness that the market is perfect (Rivard et al. 2006). As a result, the framework will not be able to deliver meaningful insights on highly regulated industries (Grundy 2006)) .The applicability of the framework is more towards the analysis of simple market structures, rather than those which are in a much more hard industry (Grant 2010). As a result, the framework is limited to focusing on particular segments of such industries. This imposes an increased risk in omitting important elements (Grant 2010) .The framework assumption on having moderate stati c market structures makes it a non suitable framework for todays dynamic markets. caper models, entry barriers and relationships may change along the supply chain within a snapshot due to technological breakthroughs and dynamic market entrants (Karagiannopoulos et al. 2005). As a result, the framework could be a preferred model to be used at a later stage for analyzing new situations however, it is limited to and perhaps not ideal to a certain extent to provide burden actions (Rivard et al. 2006) .Porters Framework is based around the idea of competition, hence the name competitive forces. The assumption made by the framework is that a company will try to attain competitive advantage over the various players in the markets together with suppliers or customers (Aktouf et al. 2005). As a result of this, the framework only focuses on such aspect of strategy rather than taking into consideration the availability of strategic alliances, virtual enterprise- networks or others (Aktouf e t al. 2005).Overall, Porters Five Forces Framework has limitations because it does not take into consideration new business models and the dynamics of the market place (Recklies 2001).This report will now apply the Porters Five Force Framework to Starbucks Coffee Company (Starbucks) which is a spectacular specialty coffee tell on popular in most western countries such as the United States of America, United Kingdom and many others.Critical Analysis of Starbucks External EnvironmentWithin the rapidly changing global picture, companies and consumers are increasingly affected by global forces, represented as non-controllable. These forces are external environmental influences which must be monitored and responded to, on an ongoing basis by marketers, as they will lead to new opportunities and threats (Kotler 2007).An external environmental analysis, using the macro-economic ruminator model was carried out for Starbucks and has been attached at Appendix 2 of this report.It can be see n from the analysis at Appendix 2 that there is currently a negative imbalance in Starbucks external influence matrix. This is because whilst the sociologic factors are favourable, whilst other factors such as Political, Economic and Legal show substantial threats.However, Starbucks has got some strengths that over-come some of these non-controllable influences from the external environment. It has built in flexibility to change, for example, agreeing to pay extra corporation tax in the UK, for the next two years (BBC News bloodline 2013), or relating to the closure of non-profit making stores, and lastly it has developed high powered management decision making process which ensures that is quick at exploiting opportunities (Patton 2012).Critical Analysis of Starbucks business EnvironmentMichael Porter (1985) posits that, in an attempt to find effective sources of competitive advantage, a thorough research should be conducted on the structure of the industry. In this case, an anal ysis of the particularity coffee industry can help to establish the strategic position Starbucks oc formies and wishes to occupy. Porters Five Forces model is a useful tool in this regard. It shows how fundamental elements have shaped the competition in the industry (Hill and Jones 2009).Buyer powerIn the specialty coffee industry today, consumers have wide access to different products at different prices with offend quality services (Hunt et al. 2011). This practically means that individuals have the choice to easily switch from product to product, whichever is the preferred one. This is where Starbucks has an advantage it decides on the prices of the drinks offered to its consumers, by taking into consideration the price-elasticity which is strongly influenced by loyalty to its brand and also current prices at rival stores (Grant 2010).Since Starbucks is known to be an up-market coffee shop with high quality, based on perception and offering vertically differentiated products it is very likely for it to be able to sell its products at high prices, hence leaving no room for price-negotiation with its customers (Grant 2010).Supplier powerIn 2008, Starbucks purchased its input goods from suppliers at a market price which was 23 per cent lower than it is now (Corporation, 2008) It also takes advantage of its size and benefits from economies of scale, however, this does not help Starbucks to increase its number of suppliers due to the circumstances within Starbucks own marketplace (Grant 2010). Prices are usually determined based on the demand and supply ratio, hence, with an increased level of competition (Kotler 2007), substitute suppliers are always available if Starbucks wishes to purchase at a different price point. Despite all the supplier conditions, Starbucks holds a better relationship status with its suppliers than most of its competitors (Starbucks, 2013).Threat of substitutesProduct-for-product analysis together with an analysis of generic surrog ate is an important area to consider for Starbucks, since 14% of coffee drinkers have a favourable opinion for them (Rasmussen Reports 2011).The vast variety of the availability of different beverages such as soda, energy drinks, juices or water, in comparison to coffee, must be taken into consideration by Starbucks. However, this is not of a huge concern to Starbucks since it sells a large selection of these beverages within its stores, the biggest one being tea, a direct substitute to coffee. Starbucks has taken the initiative to sell this direct substitute product under its own Tazo tea leaf brand (Starbucks 2013).There is quite a concern when the threat of customers substituting away from Starbucks and going for direct competitors such as Caf Nero and Costa Coffee (for example in the UK) is considered. These direct competitors are hard to differentiate because they also truly pride themselves on customer services and on the quality of their speciality drinks. Large food chain c ompetitors such as McDonalds are usually known as having a negative undertone of being cheap, often pliable on the quality of coffee. This has no effect on Starbucks targeted customer base (Grant 2010).Threat of entryThe barriers to entry in the specialty coffee market, such as the one Starbucks operates in have increased. This has reduced the probable threat of new entrants (Patton 2012).The capital requirement for handsome coffee shops in this industry is relatively small as the shops require a small amount of floor space and not a high amount of applied science is used, which is normally the biggest start-up cost. As a result the potential for more of these small coffee shops to enter the industry is still present (Articlesbase 2011).Industry RivalryMcDonalds and other fast food chains are key competitors which are diversifying their beverage menu. The direct competitors like Costa Coffee and Caf Nero compete on a much more of a pair with Starbucks compared to the fast food chains, as they attract the same consumer base and offer similar products as in the way Starbucks does.Starbucks differentiates itself from other coffeehouses as it reaps high margins from its specialty drinks. This is because it takes advantage of economies of scale and has a different cost structure in contrast with other competitors in the market. They pay less for the products bought in bulk, such as dairy goods, syrups, paper goods etc (Starbucks 10K 2010).Strategic RecommendationWhether Starbucks coffee has the actual quality to attract customers or whether there is just a perception of it being better than that of competitors has been the subject of much discussion on public media through many recent surveys and reviews. Irrespective of that, some possible strategies to be considered by Starbucks in order to maintain its market position are as followsStrategy to renew the Starbucks brand name.To maintain a strong brand name, Starbucks will have to hold back people that the ir coffee is better than all other beverages, be it McDonalds coffee or Costa Coffee by introducing a more aggressive advertise campaign in order to educate and acquaint customers about the uniqueness that Starbucks quality offers as well as by diversifying advertising channels using internet, visual media etc instead of depending on employee-customer liaison (Starbucks, 2013)Product DifferentiationProduct differentiation is very vital in order to develop new flavour, blends and also roast fusions (Ross Gaddis, 2013) Starbucks should continue its coffee development program efforts through extensive research. This should continue to be done by providing free samples, at first, leading to debut the new product into all stores depending on what response it gets from the samples distributed (Porter, 2008)Due to the recess, consumers try to cut their spending and are less likely to buy a cup of coffee for 2.50, and therefore, differentiation can be a useful tool to overcome economic downturns (Moon, 2010) Starbucks can promote new cost efficient products by selling them at lower prices, hence not affecting its luxury-premium status in the market. This strategy can help Starbucks retain its customers as well as intensify their brand name.Privilege Card and Rewards ProgramStarbucks Card program for consumers to reload credit online has been implemented in order to not only provide customers with rewards on online registering but also benefiting them with complementary beverages after a certain number of purchases, free refills as well as free syrup options (Starbucks, 2013). However, other competitors also have similar strategies for consumers and this leads Starbucks to offer distinct rewards in order to deliver incentives for coffee consumers as compared to its rivals. For instance, Starbucks could cooperate with airline companies and various large retail businesses so as to combine their rewards program with Starbucks (Hill Jones, 2010)Focus on the coffeeStar bucks should also consider cost reduction as well as potential growth strategies especially at the time of economic downturn. For example, Starbucks has begun to invest in new businesses other than coffee, such as films, music and books (Starbucks, 2013) This has led Starbucks to incurring higher costs and lower profit margins but this can be prevented by focusing on different marketing techniques to reach a wider audience. In these recessionary times, involving itself in fewer businesses can help Starbucks cut down costs and more resources can be utilised to improve their core product, which is coffee (Moon, 2010) in effect(p) Store Expansion DecisionThe launch of more stores has had to be reduced or halted completely in order for Starbucks to survive at the time recession in the United States. In the year 2007, Starbucks opened about 1700 stores today it has around 15000 stores and still aims to build the number of stores up to 40000 in the foreseeable in store(predicate) (Corpor ation, 2008) Taking into account its overall financial performance as well as the downfall in the economy, it is best if Starbucks focuses on renewing its brand and customer base rather than opening stores at present (Omer, 2008).The Starbucks FeelPeople enter a Starbucks store not just for a cup of coffee but also for the relaxed environment and the opportunity to de-stress for a while. The initiative to write customers names on their cups adds to this club atmosphere. This Starbucks feel needs to be further developed and sold to the customers.SECTION 6ReferencesAktouf, O., Chenoufi, M., Holford, W.D. 2005. The False Expectations of Michael Porters Strategic Management Framework. Problems Perspectives in Management (4) 181 available from http//connection.ebscohost.com/c/articles/19299836/false-expectations-michael-porters-strategic-management-frameworkArticlesbase 2011. The Initial Capital Investment in jump a Coffee Shop Business. Articlesbase available from http//www.articlesb ase.com/entrepreneurship-articles/the-initial-capital-investment-in-starting-a-coffee-shop-business-5185126.html Accessed 18 April 2013.Business, N., 2011. www.bbc.co.uk. Online Available at http//www.bbc.co.uk/news/business-20573208 Accessed March 2013.BBC News Business 2013. Starbucks rejects tax row threat after Cameron Speech. 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