ANAYLYSING COMPANY’S STRATEGY

One of the important activities in analyzing a rival company is its strategy. However this is not a simple methodology unless someone understands strategic management or crafting and executing strategy. We need to study completely on a company such as its organizational charts, its financial statement, its performance, its activities and company structure in understanding their strategy.

In analyzing a company strategy we first must know the competitive level strategy or business level strategy and the corporate level strategy. What are the strategies in the business level? The strategies are: Overall low cost provider strategy, Broad differentiation strategy, Focus Low Cost Strategy, Focus Differentiation Strategy and Best Cost Provider Strategy.

The next level strategy that we need to know is the Corporate Level strategy or the Beyond competitive level strategy of which the strategic components are Collaboration, Outsourcing, Merger and Acquisition, Internet, Offensive Strategy, Defensive Strategy, Forward Integration, Backward integration and Diversification.

 

By having a complete knowledge on the strategy, later we could undertake to evaluate the company’s strategy. This analysis could be supported with the action taken by the company, its performance, company structure or its organizational chart. The company’s performance will always be translated in its financial statements. Besides that, it is important to look at the company organization chart since the company structure determines the support to the strategy taken. A wrong organizational chart that do not support the strategy chosen will only induce unprofitable condition to the company or unable to effectively execute the strategy. For that reason in executing the strategy; PEOPLE-OPERATION-STRATEGY need a serious attention by the key management in ensuring the company economic equitability for all its business activities.

TASK:

 

1. You are being required to select an outfit or company. Analyse its strategy and provide   justifications for your statements.

2. You must enclose any documents of the company to show your work is not a plagiarism and as a support evidence such company registration etc. 

 

Important Note:

 

a. 3000 - 3500 words counts

b. Font : Arial

c. Size of font: 12

d. Insert your reference and cross referencing

e. Plagiarism work shall not be attended.

VALUE CHAIN

A business outfit in Mooloolaba - good ROI for 2010

Value chain is the sequential of primary and support activities of an enterprise performs where it turn into a value added outputs for its external customers. According to Michael E. Porter, it is a connected series of organizations, resources, and knowledge streams involved in the creation and delivery of value to end customers.

Value Chain in definition is different from ‘flow process’ which is more being defined as a method in visualizing and documenting the stages involved in performing a certain business procedure. It might take the form of flow charts showing the process steps by steps where the inputs to create a deliverable output. It might be product or services.

From the definition, we could see clearly the differences between Value Chain and Flow process. Analysis could be done on both of the said activities in improving a company business. However to induce profit maximization, value chain is more crucial to be evaluated and later action to be take in ensuring the corrective actions are taken.

Normally in the process of profit maximization or turning around company from losses to profit, value chain is being analyses right to the level of efficiency which involves cost such as man-hours.

For those students who have studied strategy would be much easier to understand the difference between these two. Hence they would the first mover in the organization to lead the company turnaround for profit maximization.

A few Malaysian Students at USC, Queensland

 If we learn strategy, value chain analysis would be in the section of internal analysis. Despite of short hours of learning value chain analysis in the subject of strategic or crafting and executing strategy, the importance of value chain has been known as one of the most important activities to be made for organization highest ROI (Return of Investment).

In my experience of undertaking the company turnaround activities, I have personally used the value chain activities as the core for profit maximization. I have even done research that proves the restructuring is a wrong and non-economic equitablity process to be taken by companies. There is no sure return and reduce even the ROI of the organization despite they might have profits after the restructuring. However the impacts of restructuring are more economic disastrous result to the people involved and even to the government locally and national level.

Assignment:

Select a small or medium size business outfit, analyse the business challenges faced by the organization and propose solution for its business challenges in ensuring its sustainability.

 

Important note:

You must insert in the appendix:

1. Copy or scanned business registration of the business

2. relevant picture of the business outfit

3. Some supporting documents used for your analysis e.g. financial statements.

4. Charts or table to be inserted

 

 

Note:

Word Counts:                3,000 -3,500 words

Font:                            Arial

Size of font:                  12

Spacing between lines:  1.5

Plagiarism work shall not be marked.

 

 

ETHICS AND US

 

In many of our days, we could see many human doctrines are just unethical or immoral. There are people walking along the streets, taking some sweets and the sweets cover are being drop intentionally on the road or floor. The smokers, smokes their cigarettes at the restaurant, later drop their cigarettes remains on the floor while stepping on it. All we know these actions are immoral since it is contributing to the place dirty for other peoples. They are being immoral because they do not care other people’s happiness and welfare as mentioned in Utilitarian.

Among the six points of Utilitarian; “when deciding for an action, consider the happiness and the unhappiness of others,” and even “action effect people to different degrees.”

There are many other actions that we thought we have practice a norm practice but actually immoral. Another example, two students, or three student just keep on talking while the lecturer is explaining infront, or having telling a lie for just being late to a meeting; is it moral? It is easily define by understanding the definition of Morality, “the social rule that govern and limit our conduct, what is wrong and what is right,” while ethics is defined as “the philosophical study of moral or morality or the theories of morality.” We need to remember that morality focuses on human welfare at the highest values and it might supersede the law.

Oslan use to say that; “a continuous practice may develop an attitude,” (Oslon and Zanna 1993). According to Solomon, “When a values being developed and becoming norms to a group of society it will become a culture,” (Solomon 1984).  The voice of the heart could intercept to determine whether the action of the students above is moral or immoral.

These are all small example. Despite of these there are many more practices that we have missed the morality value of it such as, a shopkeeper, keeping the weigh machine at faulty measurement, cooking or frying using the same cooking oil in a fast food restaurant which can cause cancer to customers or obesity, driving recklessly on the road which in return disturbing or violating other people’s happiness; actually we are just being immoral.

 

Assignment Question:

The Goverment introduces human capital, practices of morality values in business, ethics in societal relationships, consumerism and even focuses more on enviromental issues. Describe your understanding on thses issues and how does the interelations of those efforts shall work for the benefit of Malaysia toward 2020.

 

 

IMPORTANT NOTES:

Font Helvetica (size 12)

Spacing: 1.5

Words: 3000 excluding charts

Journal references: 5 in numbers (compulsary)

Book: 1 in number (compulsary)

Pliagarism work shall NOT be marked

ETHICS AND GLOBAL WARMING

In many area of the world, either in a small portion of a country, a portion of a continent, faces the impact of global warming. Despite of many NGO’s or some world leaders calling the other leaders to manage the factors which are contributing to global warming, yet many are still dimmed in saving the world from global temperature rising.

                                 Impact when the world has increased by 6 degrees

                                                (Source: National Geographic)

The global climate change is very much related to economic of nature and not political economic of nature. For that reason, many country leaders or politician deems to be talking with no real spirit in saving nature. It is strange when one day they might talk on saving the world from going to a higher degrees but on the other hand contributing to global warming in the nature of their development decisions or by ignorance. Today he or she provides speech on saving the world and the next day he or she shall officiate the next industrial area where clearing the remaining jungles or filling up lakes and rivers. There are times they will destroy or shift the natural rivers to a man-made rivers and lakes. They will shift the original clean water fall into an electrical small waterfall for a housing industry. These are all unethical deed not only by the optician but also the greed business man who are capitalist in nature, the profit and free market believer.

Most people do not understand the impact of climate change. They have no knowledge on what happen when the world rise with 3 degrees, 4 degrees and with 6 degrees.

Climate change has 3 main concerned:

a. Climate change contributed other important concerned such as 1 billion people living to unacceptable poverty due to unexpected drought, drying lakes and rivers or even desertification.

b. A fixation on global CO2 levels which contributed too many negative impact in the ecosystem.

c. A horror state of inducing meltdown of icecaps or glaciers which result in increased sea levels, global climate change, desalination of sea water which would contribute to haywire of the earth climate.

According to Stephen Gardiner, it is a ‘perfect moral storm’ to moralize the human mind and our political institution to reinstate in their mind the importance of caring the global climate from becoming to an increase global warming which contributed to major disaster to human kind (Stephen Gardiner, 2011)

Laws have to be amended and enforce to make them feel guilty or guilty as state, having an offence for destroying the earth climate. It is our duty of all to persuade 7 billion world populations to adapt the new morality of carbon rationing i.e. preventing from carbon free-riding.

We have to realize that, global warming is ‘human greatest threat.’ Humanity is about to face the most devastating catastrophe that mankind has encountered since the Bubonic Plague during the Middle Ages.

Either our world leaders are going to recognize global warming as a real threat to humanity and address it properly or the entire human population may become extinct. The effects of global warming are both frightening and overwhelming.

Not all what we read in the news or see on the television is true, example the thought of global warming in reaction to hurricanes. Public are not made known to a real scientific experiments. Scientists are being prohibited by politician not to publish all their data and findings on the current impact of global warming. It is only made known to the public that human are clearly contributing to the emission of CO2 in the air from burning of fossils fuels. No detail data were provided as the exact impact, because it is stops by politicians. It is just for political economic reasons and not for human well fare reasons. It is unethical and immoral to prohibit the scientist in providing a true data. However that is what being practice by politician all over the world including Malaysia. According to Utilitarian Ethical Philosophy, “we must provide the maximum benefit and happiness to the maximum number of people,” while according to Kant, “whatever we want to do our intentions must be pure in the intentions.” The question is, are our leaders pure in their intention to the people?

Questions for assignments:

Choose either one.

1. Global warming has a tremendous impact on human kind. Discuss in detail on this statement and how does it relates to unethical practice of human contributing to global warming. Why Alaska, North America and Australia has been said as the most minimal country contributing to global warming? How ethical knowledge could assist in reducing to global warming?

2. Social Capital is an important issue and has been forgotten. How a good social capital knowledge and practice able to contribute to an ethical business practice in a country?

 

Note:

a. Words count: 2500 - 3000 word

b. Font: Trebuchet

c. Size: 12

d. Spacing: 1.5

e. Plagiarism work shall not be accepted.

Business Model

Research has shown that in many cases of profit and nonprofit organizations fails in its operations are initiated by a wrong business plan. The organization might have the business plan but the Business Model was never developed.

For that simple and crucial reason, the operations move to a non-profiting or if profits are visualized, it becomes a non-sustainable situation. Why? The simplest explanations are:

a. The business plan are to complex and thick which later turn to be a dust collector on any of the office shelves.

b. The employees are not clear on where they are heading. If they are ‘feels’ they are clear, they are not sure where are the detail routes of their own organization.

c. The key management themselves tend to mislead in the middle of operations.

For that reason, a business model is required and turns to be the most important requirements. There are many companies succeed with a good profit margin by first developing and stand their organization to their business model.

Examples are:

a. Air Asia: A low cost provider airlines and making huge profits compared to  MAS.

b. The Sun News Paper: Providing free newspaper to the public, yet enjoying their beautiful profits

c. Google: Enjoy billions of profits and yet 90% of the users through the world are free users.

d. Facebook: The two smart young billionaires, with provides 95% of the users are free.

The question is how? The answer is simple, BUSINESS MODEL.
The business model shall remain for 5 – 20 years and only the business plan being revised every year.

Literatures Study

According to Christoph, Raphael and Lorenzo stated that, there are 3 main finding why business model has been important to organizations:

1. The business model is emerging as a new unit of analysis

2. Business Model emphasize a system level, holistic approach towards explaining how firms do business

3. Organizational activities play an important role in various conceptualizations of business and it is well defined in Business Model

4. Business Model seek to explain how value is created and captured (Christoph, 2010)

For that reasons, Google, Face Book, Air Asia, and many other organizations enjoys sustainability with their business model before and their business. Google’s profit in 2010jumps 32% higher compared to 2009. In 2011 Google’s profit again increases by 17% where its Q4 2011 was USD 2.7 billion.

Air Asia record a profit of RM 500 million in 2010 where other airlines such MAS are recording at lost. In 2011, despite of high fuel spikes, Air Asia still make a big jumps its profits which is 33% increase to RM1.18 billion from RM894 billion in 2011.

For that reason, companies MUST embarked on Business Model and later shall translate it into a business plan.

Question:

a. Select a small business outfit of Batik. Describe what is their problems and challenges. Provide a proposal for their improvements.

b. Select a restaurant or small food stall outfit. What are their challenges and provide a solution to them.

Note:
Words: 2500 - 3000 words
Spacing : 1.5
Font: Trebuchet
Pliagarism work shall not be marked.

The illeffect of Corporate Restructuring to employees, organization, and the economic.

Introduction

Corporate restructuring has been exercised in corporate companies as early as 1900s and contributed an impactful activity to employees and even stakeholders. Restructuring normally being adopted when the corporation is no longer willing or able to develop or utilizes the capabilities and also its assets which were invested earlier in the past investment decision (Lowell, 2003). Corporate restructuring can take in two forms; Renovative restructuring and redistributive restructuring. The Renovative restructuring mainly contributes to equitable economic growth, while redistributive restructuring benefits certain groups at the expense of others.

The redistributive restructuring involves six forms such as divesture, buyouts, outsourcing, relocation, downsizing and bankruptcy. All this activities of redistributive restructuring initiated with negative approach to certain group of people and vice versa for those who remains or being relocated after restructuring.

Problem Statement

Restructuring approach is a historical revolving process where organization will initially starts with redistributive restructuring and later followed with Renovative restructuring. Downsizing workforce or employees in ensuring to achieve ‘rightsizing’ of the company, or divesting certain departments, even subsidiaries so that the company can invest in a new innovation using remaining work force and assets. Despite of such intention, companies might end up with bankruptcy or total sell-out of the company and some company might stop half way due to lengthy restructuring exercise.

By practice, corporate restructuring entails a divesture of resources in one or more market, activities and locations. On the other hand, companies In can also involve in a substantive downsizing on employment level without having withdrawing its business activities in an area, multiple area or even not abandoning the market and process activity.

The impact of restructuring can contribute a downside economic impact to retrenched labor force, local area, national and global levels. Some big companies such as Peugeot with 198,000 employees, Wal-Mart; 1,300,000 employees or to any 500 fortune companies will only create an enormous negative impact before any Renovative restructuring takes place. In 2002, 13 major corporation in the world had revenues exceeds USD100 billion, of which six are American, three Japanese, two German, one British and one British-Dutch (Fortune 2003). General Motors, General Electric, Ford Motor. Chrysler, ITT, Boeing, IBM Eastman Kodak, Firestone Tire are examples of company distributed in many countries of the world having employment as 2,901,678, will just contributed major negative economic impact to the retrenched work force, national and even global level (Lowell, 2003). An example, in the New Economic boom of late 1990s, Alcatel made number acquisition in North America for Data networking capabilities in voice transmission including optic fiber. However between 2002– 2003, its revenue falls dramatically and cuts its employment from 132,000 to only 60,000; a reduction of 72,000 employees within 2 years and another 18,000 dismissed from their job when they later divest their cable business. Alcatel is a good example of global player involves in many countries in the world with its telecommunication base business including Malaysia.

Research findings

Restructuring might finally ends up with upside impact to remaining employees . However, studies made in Sweden that despite of all the possibilities in having the positive implications, there are negative impact not only to the victims but also to the survivors, on displaced workers. The effect such health, earning for remaining, uncertainty, working environment, even work stress for remaining after redistributive restructuring (Bergstrom, 2005).

 According to Bergstrom, “The intention of restructuring might not always be realized and he suggested that restructuring is insufficient to change the performance and/or cost structure of firms.” (Bergstrom, 2005). He also added that, there are evidence shows that restructuring causes negative effects on survivors. (Bergstrom, 2005).

In Korea, Corporate restructuring contributed a significant effect on workers job insecurity and indirectly significant to their health and health behaviors (Chaekyu, 2003). He added that, the Korean society should revise the strategy of corporate restructuring where the intention is reducing the cost of operation for short term and yet contributing a heavy burden on long-term survival and development of the company. The corporate restructuring has decreases the corporate productivity and weakens the social integration in Korea (Chaekyu, 2003).

Restructuring is a lengthy process which roughly takes one year to complete. According to Audra L. Boone who studied 298 firms in US from 1989-98, found that due to the time period and urgency of resolving critical financial or operational situation, the companies end up with a variety outcomes from being acquired, bankruptcy to taking no observable actions. (Mulherin, 2001).  He added that, from 298 firms propose for corporate restructuring, 70 percent make a definitive proposal to sell either all or part of the company while 30 percent taking a route to be out of play or declaring bankruptcy (Mulherin, 2001). The estimate percent where the corporation able to have full value of the restructuring is only 7.5 percent and the firms that has an average gain from the restructuring is only 5 percent. From the reported percentage, the current methodology of restructuring has not significantly contributing upside impact to the organizations.

According to Dr. Harvey E. Griggs from Central Queensland University, he found out that the corporate downsizing in restructuring has seriously damage the learning capacity of the organizations even with a well-planned ‘brain-drain’ process (Griggs, 2002). This will disturbed the learning curve of the company and a higher cost of operation will be experienced by the organization.

A research being done on Otago Polytechnic, USA; to study the impact of organizational restructuring on the employees commitment.  The research provides a strong evidence to suggest that those survivors demonstrated high potential loss of loyalty and trust in the organization, feeling of insecurity,  confusion over roles and expextations which collectively called ‘survivors syndrome’ (Theissen, 2004).

In Malaysia, restructuring has contributed cases of employees summons employer to the court. There are cases where constructive dismissal became the case where the employees are being transfer to new department and later being dismissed due to incompetency evaluation by employees. The employee claimed that the employer has assigned him to a new task with the ultimate intension to ship him out. This is clear in the case of UMW Engineering Sdn Bhd v Fong Pak Fai (1995) 2 ILR  728 Tuan Tan Kim Song. (Sivagnanam)

Conclusion

From the brief writing above, it is almost certain that Corporate Restructuring has not much contributing towards constructive impact to the organizations, employees national economic due to divestures, retrenchment or bankruptcy action. It has also not  able to induce a positive long term effect to those remaining employees after restructuring.

In most cases the percentage of companies that survived and able to engaged on profitability and sustainability is minimal and yet end up with divesting a portion or all of the company and even proposed for bankruptcy. For that we can conclude research need to be done in developing a new Restructuring Model in ensuring a more justifiable process and effect corporate restructuring for a better corporate sustainability and more equitable economic. It is important to note that any negative impact to employees will induce a back to back impact to a decline in organizational profitability, efficiency, local and regional economic. On the other hand for companies with high number of employees will contribute a more prominent effect even to national and global effects due to divestures, retrenchments and even bankruptcy.

Bibliography

Bergstrom, O. (2005). A Swedish point of view on restructuring. Institute for Management of Innovation and Technology.

Chaekyu, P. (2003). The effect of corporate restructuring on workers health in Korea (Vol. 32). Development and Society.

Griggs, D. H. (2002). Organizational Restructuring - The case of learning organization; contradiction or necessity? Australia.

Lowell, W. L. (2003). Corporate Restructuring. The Oxford Handbook of Work and Organization.

Mulherin, A. L. (2001). Valuing the Process of Corporate restructuring.

Theissen, C. (2004). The Impact Of Organizational Restructuring on Employee Commitment st Otago Ploytechnic. Research for fulfillment of Masters Degree, University of Otago, Dunedin.

ETHICS IN BUSINESS

When business people speak about “business ethics” they usually mean one of three things:

(1) avoid breaking the criminal law in one’s work-related activity;

(2) avoid action that may result in civil law suits against the    company;  and

(3) avoid actions that are bad for the company image.

Businesses are especially concerned with these three things since they involve loss of money and company reputation.

However, it is not likely that philosophers can teach anyone to be ethical. The job of teaching morality rests squarely on the shoulders of parents and one’s early social environment. By the time philosophers enter the picture, it is too late to change the moral predispositions of an adult.

Also, even if philosophers could teach morality, their recommendations are not always the most financially efficient. Although being moral may save a company from some legal and public relations nightmares, morality in business is also costly. A morally responsible company must pay special attention to product safety, environmental impact, truthful advertising, scrupulous marketing, and humane working conditions. This may be more than a tight-budgeted business bargained for

We can also say that, business ethics is a moral obligation in business and are restricted to what the law requires. The most universal aspects of Western morality have already been put into our legal system, such as with laws against killing, stealing, fraud, harassment, or reckless endangerment. Moral principles beyond what the law requires – or supra-legal principles -- appear to be optional since philosophers dispute about their validity and society wavers about its acceptance.

Harm principle: businesses should avoid causing unwarranted harm.

Fairness principle: business should be fair in all of their practices.

Human rights principle: businesses should respect human rights.

Autonomy principle: businesses should not infringe on the rationally  reflective choices of people.

Veracity principle: businesses should not be deceptive in their practices.

A stakeholder is any party affected by a business practice, including employees, suppliers, customers, creditors, competitors, governments, and communities. Accordingly, the stakeholder approach to business ethics emphasizes that we should map out of the various parties affected by a business practice.

Although corporate codes of ethics are often viewed cynically as attempts to foster good public relations or to reduce legal liability, a corporate code of ethics is a reasonable model for understanding how we should articulate moral principles and introduce them into business practice.

To Malaysian, there is a lot more to be done on ethics. Issues crop up on every blue moon and all are involves non ethical values, immorality. Despite of public issues statements on corporates unethical practices, the company's directors or spokesman proceeds with denial and it has become a norm in practice of negligence is not a negligence. The impact are the society.

Questions - please choose one only:

1. NFC issues has long being debated in public and media. Describe in the  perspective of ethics and morality on this issue, how to avoid such an issue occurs.

2. Abortions, disposing at birth babies by irresponsible parents are becoming a norms in Malaysia. Schools/placements for these children are being build in Melaka. Explain why this issue arises. How to overcome and is the special school/placement is a right decision made.

3. Jungle clearing in cities, extensive logging has been practice widely in Malaysia in the name of economic generation and development process. From your perspectives of business ethics, describe in the said activities.

4. Human rights is an important issue to the nation. In perspectives of Malaysia, explain what do you understand on human right values and practices in Malaysia.

NOTE:

Font: 12 - Century Gothic

Spacing: 1.5

Word counts: 2,500 - 3,000 word

Plagiarism/ Cut and paste work shall not be marked.

Reference: Compulsory

Followership

According to Mary Parker, “of the most importance, but which has been far too little considered, and that’s the part followers…” (1949, p.41)

In 1992, Kelly’s Model was developed by Kelly on how followers must be engaged and developed. Further in 1998, Hayes stated that “followers are important to be motivated since they are the organization assets...” (Hayes 1998).

There are many more researcher undertake studies on the importance of follower and followership such as; Bain (1982), Hersey and Blanchard (1982) & (1984), Hensen (1987),Alcom (1992), Strebel (1996), Citrin (2002), Lawrence and Nohria (2002),William and Miller (2002), Cross and Parker (2003), Blackshear (2003), Hower and Shamir (2005) and Robbins (2005).

The management and organization has been dominated towards leaderships, leadership characteristics; which romanticized larger role as a result (Meindi 1987). Many attentions are on leaderships while the importance of followership was rarely discussed. Ironically, the effectiveness of a leader is to a great extent dependent on the willingness and consent of the followers. Without followers there will be no leaders indeed (Hansen 1987).

Figure 1: Hersey and Blanchard’s Situational Leadership Quadrants

(Source: Robbins, 2005)

It is then an ideal leadership model was developed by Hans & Blanchard in 1982 (please refer to figure 1) and then the popular Kelly’s Model in 1992 as in figure 2 below.

Figure 2: Kelley’s different type of followers

(Source: Elizabeth C. Thach, 2006)

However with Robbins research in 2005, explaining the motivational factor and how to manage the organization while taking critical measures on stress, conflict management within followers, a new followership model developed; “The Integrated Model of Followership.” It is an integration of Kelly’s Followership Model and Blanchard leadership Model; which is to be used as the most effective followership style or model to be followed by followers.

Figure 3: Integrated Model of followership and leadership styles

(Source: Elizabeth C. Thach,. etl. 2006)

For reasons above, it is important the organizational leaders NOT to neglect the followers and the followers need to be train, explain and educate how to engage into “followership”

Behaviors within the followers need to be developed for optimum matching to the styles s as in figure 3. This only could be done by training and educating the followers. The impact or outcome is the organization able to achieve its business objectives.

Questions:

1. Followership has becoming an important issues in strategic management and strategic implementation. Describe how could you integrate leadership values and followerships values to ensure your strategic implementation being executed effectively in your own organization.

2. Select a case from your own organization that you are currently attached to, define what are the issues, problems faced. Strategically provide a proposal on how you are going to resolve the issues.

3. Select a company financial statement. Analyse and explain what are the problem faced by the organization. Describe and explain on how you will solve the problems that the organizations is facing.

Words: 2,500 - 3,000 words
Font: 12 - Calibri
Chart and graphs are required - compulsory.
Space: 1.5
Reference: compulsory