Jealousy

In Shakespearean plays jealousy usually plays a considerable role in the causing the tragedy. Shakespeare shows great understanding in human nature and human tendencies. One aspect of human nature that he has a lot of insight on is jealousy. Shakespeare understands jealousy well, and is able to illustrate how jealousy can bring out the worst in people. In Othello , it is clear that in law relationships will fail because jealousy makes both parties of the relationship act evil.In addition, jealousy can cause the downfall of a marriage. Moreover jealousy can initiate the downfall of a friendship. Jealousy can bring out the evil and irrational actions in a relationship, resulting in the failure of the relationship. Family (In Law) relationships will fail due to both parties acting evilly and irrationally because of jealousy. Jealousy can cause the destruction of a good father daughter relationship causing a father to betray his daughter.Desdemona and his daughter had a good relationship because Barbantio says, â€Å"I therefore vouch again/ That with some mixtures powerful o'er the blood,/ Or with some dram, conjured this effect, He wrought upon her† (Act 1 scene 3, line 103-105). This shows that she would never have wanted to leave her father of her own free will before. However due to the jealousy towards Othello for winning his daughter, Barbantio betrays his own daughter when he says, â€Å"God be with you! I have done. (act 1 scene3 line189).This quote shows that Barbantio disowns and betrays his daughter because he is jealous that she has chose Othello over him, ending their father daughter relationship. Moreover, Barbantio and Othello had a good relationship until jealousy caused Barbantio to become racist. Othello says, â€Å"Her father loved me, oft invited me† (Act 1 scene3 line128), this shows that Barbantio and Othello had a good relationship. Afterwards, Barbantio exclaimed that, â€Å"I'd rather adopt a child then get it. † (Act 1 Scene 3 line 191). Barbantio is saying that he would rather adopt a child then have a half black grandchild.The jealousy causes Barbantio to become racist, ending their relationship. Therefore, jealousy can cause people in a Family(In Law) relationship to act with evil, resulting in the downfall of the family relationship. Jealousy can cause spouses to act evil and irrational, ensuring the downfall of the marriage. Husbands go from trusting their wives to distrusting their wives for the reason that jealousy causes them to, hence ending their marriage. Othello declared, â€Å"My life upon her faith! † in a response to Barbantio uttering, â€Å"She has deceived her father, and may thee. (Act1 scene 3 line 293), this shows that he is fully trusting of Desdemona in the beginning of their marriage. Then Othello becomes jealous of Cassio because he believes that Cassio is sleepingwith Desdemona, this jealousy initiates Othello's distrust in Desdemona. This distrust towards Desd emona results in Othello not believing Desdemona when she says that she is a â€Å"true/ and loyal wife† (Act 4 scene 2 line 34-5) results in the end of the relationship because Othello slays her because he suspects that she is cheating.Furthermore, jealousy can cause a member of the relationship to act illogically resulting in the collapse of the relationship. Othello started out as a very sensible person who would always think of a logical solution. For example, when Barbantio came to fight him he talked them out of a battle, he says, â€Å"Hold your hands,/ Both you of my inclining and the rest. /Were it my cue to fight, I should have known it/ Without a prompter† (Act1 Scene2 Line 83-85). This shows that he was in a logical state of mind before the jealousy caused him to become unreasonable.He became so unreasonable that he started seeing what the jealousy inside of him wanted to see. The jealousy caused him to be unreasonable to the point where a simple hanker chi ef, that Desdemona could have easily lost, triggered him into thinking that Desdemona and Cassio are having an affair, which led to him plotting to kill both of them. Additionally, Othello and Desdemona's have a very pleasant marriage, until abuse starts because of jealousy. Othello went from show enormous amounts of affection towards Desdemona.When Othellos sees Desdemona for the first time in Cyprus he exclaims, â€Å"O my fair warrior† (act2 scene1 line 177) then Desdemona replies, â€Å"My dear Othello! â€Å"(Act 2 Scene1 Lines 178). This shows that there is a lot of affection in their relationship prior to jealousy making Othello very abusive. Othello becomes jealous that Desdemona is sleeping with Cassio, so his suspicion lead to him abusing Desdemona mentally by calling her a â€Å"Whore†. As a result, jealousy can evolve into the hammer that can break a wedlock!

Mcdonalds Case Study Project Managment

Contents 1. Introduction 1. 1 History of McDonald's 1. 2Philosophy of the company 2. Task 1: SWOT Analysis 2. 1 Strengths 2. 2 Weakness 2. 3 Opportunities 2. 4 Threats 3. Task 2: McDonald's Plan to Win Strategy 3. 1 Implementation of key elements new Strategies 3. 2 SWOT Analysis and Plan to Win 4. Task 3: McDonald's 2003-2009 Strategy 4. 1 McDonald's Dynamic Strategy 4. 2 Strategies Comparison 5. Task 4: McDonald's Competitors 5. 1 Wendy's 5. 2 Jack in the Box 5. 3 Sonic 6. References 7. Bibliography 1. Introduction 1. History of McDonald's The first McDonald's was inaugurated by the McDonald's brothers in 1948, constituting itself as the first local in the history of the quick service of foods, in San Bernardino, California (U. S). They offered quick food, soon they reached a high level of sales and although the menu was limited the success that is to say previously prepared food and served to high speed. Without a doubt the base of its success was in substituting the conventional china that you/they used the rest of restaurants, for the paper bags. It was then when the supplier of the shaking machine shake, Ray Kroc, surprised by the quantity of â€Å"Multi-mixers† requested, it proposed the opening of new restaurants. This way in 1955 the first local of the Corporation was inaugurated in charge of Ray Kroc. During the 50? s and the 60? s, Ray's managerial team Kroc established the successful philosophy of the system of the company: Quality, Service, Cleaning and Value. At the moment this Franchise possesses more than 25. 00 establishments in 117 countries and five are the continents in which the Golden Arches run off with, number that was increased more with the recent opening of 3. 000 local during 1999. Although McDonald's offers its clients a standard menu in its entire local, it is common that these menus combine with special products that are developed in each culture depending on the likes of the clients. {Love, 1995 #4} 1. 2 Philosophy of the company The company brought to this new market of the quick foods a con cept of original quick service, where of the details is taken care to the maximum, to offer the consumer an excellent product. The operative philosophy of the McDonald's system is based on the Quality, Service, Cleaning and Value for 44 years. The company offers a standard menu, although it develops in each culture special products that are adjusted to the pleasure of the community. McDonald’s is successful because it has a system of corporate norms and individual opportunities, to all the Franchised they are integrated in the same philosophy of values and clear expectations. For McDonald's the employees are the most important thing. It is thanks to them for what the clients are taken an incredible experience in each visit and want to return. The principles of Quality, Service and Cleaning begin with their own employees, McDonald's guides all the actions according to organizational values as working in team, to feel passion for the work always offering the best of themselves, to be committed with the partners and with the mission of the company, to be entire in each one of the actions, to be leaders. {Kroc, 1987 #5} McDonald's is a company that offers work eminently to young people over 16 years, it is for it, for what its schedules of work are enough flexible to be able to continue the studies, adding an unique labor experience, it can even become the first step of a great professional career in an international company. The competitors of McDonald's is formed by all those companies that act in the sector of the quick foods that using a very similar technology tries to assist to the same type of clients. When McDonald's begun to give its first steps restaurants of quick food they didn't exist, so soon he became the leader of the sector. It was starting from that Ray Kroc organized the company McDonald's System, Inc. , March 2 1955 when other companies were already in the business and McDonald's it was beginning to lose its advantage in front of other companies like Burger King, Kentucky Fried Chicken or Chicken Delight. Kroc was then in one of the most competitive markets, that of the hamburgers. {Kroc, 1987 #5} McDonald's has always tried to differentiate its products of the rest of its competitors, and it doesn't in fact try to differentiate them through the price, but through the good quality, the service, the originality and innovation. If for something is McDonald's characterized it is for the innovation, she has always tried to offer something different to its consumers, continually innovating with new products, and a clear example is in the Big Mac. In the market very similar hamburgers were already sold when McDonald's decided to sell it, but she only knew how to give him the form and the in agreement size with its name. And as shown on Table 1 the market share between competitors throw the last 4 years. Table 1. Burger Restruant Market Share |Europe (2006) |Europe (2007) |Europe (2009) |USA | |McDonald's |16. 54 |19. 47 |66. 74 |94. 06 | |Yum! Brands |3. 25 |3. 43 |42. 82 |58. 59 | |Burger King |2. 60 |2. 65 |21. 45 |29. 35 | |Subway |0. 74 |0. 1 |19. 79 |27. 07 | |Starbucks |0. 77 |0. 90 |17. 44 |23. 86 | www. macdailynews. com McDonald's also knew that the strategy of growth was essential and when Burger King and Burger Chef were enlarged so much that they were about to reach him, McDonald's decided to grow e ven more. In 1967 Burger King had settled down as expansion program reaching the 100 new positions a year, equaling the rhythm of expansion of McDonald's for the first time. But the threat of Burger Chef was even bigger, since at the beginning of 1968 its program of expansion had shortened the distances between her and McDonald's reducing it to less than 100 position. [pic] Figure 1 Burger Fast food Market Share 1 . It is obvious that all the competitor companies have tried to sell products substitutes of the Big Mac, without a doubt, the good known one is the Big King of Burger King that tries to satisfy the same clients with the same ingredients. While McDonald's tries to differentiate the Big Mac of the Big King offering fresh products and a hamburger of more quality, Burger King tries to highlight its product offering a hamburger a little bigger and made to the grill and therefore, with different flavor. Figure 1 2. Task 1: SWOT Analysis [pic] 2. 1 Strengths All strengths have been taken from the McDonald’s 2006 Worldwide Corporate Responsibility Report {McDonald's, 2008 #20} †¢ Open door Company Company trust was declining because of public confidence in the safety of beef, poultry and bad intentioned internet rumors. We do also remember the BSE crisis in Europe at the begin of this millennium. On March 2001 MCDONALD’S decided to open its doors to everybody with desire to see how the company is being managed. This action was supported by open invitation through TV and printed advertisement. Consider the courage of MCDONALD’S’s board to open their company to everyone? Have they completely been sure of what is going on in their remotest MCDONALD’S restaurant? How can they risk to show one of their black sheep (and every 1000s of subsidiaries holding concern has some! to the public and could face the tremendous impact a cockroach would have being found in a double-cheese burger or found on their kitchen floors? Roaches are present in many locations we don’t want to have them: Certainly MCDONALD’S intended a growing mindset by its employees and management by implementing programs like this. Vice-president of corporate affairs Eric Gravier said: If any aspect o f our business deserves an open look, it’s our efforts to conduct our business responsibility. †¢ Ceres guidance and co-work MCDONALD’S works together with a coalition of investors, environmental organizations and other public interest groups to strengthen their social and environmental programs. I would perceive it also as a form of public auditing. It can be valued as strength because this helps MCDONALD’S to focus on what they should do to maintain loyal to its corporate social responsibility targets without losing strength on their business priorities. CERES encourages MCDONALD’S to report their progress and future efforts through an open door spirit. Ceres helps MCDONALD’S to develop and live CSR. The highly decentralized system –Considered as a great advantage in MCDONALD’S business – also has are disadvantages when it comes to achieve mutual global objectives. Ceres puts these weaknesses open on the table and MCDONALD’S’s top management evaluates these statements, research results. Ceres e. g. has advised management that MCDONALD’S should report more metrics and goals to demonstrate and foster progress. Ceres made 3 issues its top priority: 1. Obesity 2. MCDONALD’S’s purchasing power 3. Climate change To 1 – obesity Their approach to the health problem no. 1 in the US is the following: . Offering Menu Choice 2. Providing Nutrition Information 3. Promoting Physical Activity 4. Marketing and Communicating Responsibility To 2 – purchasing power How does MCDONALD’S influence their upstream purchasing power? What is profit oriented and what is really CSR oriented? †¢ Careful supply chain strategy Fo r MCDONALD’S there are several important strategic pillars, the first one is the commitment to social responsibility with food quality and safety, then the issue of sustainable food supply and animal welfare. MCDONALD’S food standards are world class. †¢ Active community responsibility Through MCDONALD’S House Charities and innumerable local and global community programs MCDONALD’S shows that the revenue is not all or part of the revenue belongs to the society and therefore will be given back. It shall demonstrate that MCDONALD’S recognized that through society they can do business and prosper. This consciousness also reflects itself in the attitude of employees and management in a way that they feel more responsible in what they are doing as it is as serving the public. †¢ Rigorous food safety standards â€Å"It goes all the way from the farm right to the restaurant†. MCDONALD’S works hard to make sure that rigorous food safety standards are upheld in each restaurant with training, food, safety and quality, the development of the food and menus. It all ties because many of the suppliers consider themselves extensions of the MCDONALD’S family and so they have the same rigorous approach to the programs. MCDONALD’S has a responsibility to provide a relevant variety of quality product choices that the costumer trust and that means working with partners that operate ethically and meet the social responsibility standards. †¢ Accurate service standards MCDONALD’S works hard to maintain a work environment where everybody feels valued and accepted by providing training and other opportunities for personal and professional growth and to promote job satisfaction. In their own words: â€Å"Our well-trained employees will proudly provide fast, friendly and accurate service with a smile to delight our costumers†. †¢ Affordable prices to high quality products MCDONALD’S keeps its responsibility by keeping values and high standards as they provide food that is affordable to a wide range of costumers and that means being the most efficient provider and offer the best value to the most people. Responsible charity and community work â€Å"We believe in giving back to the communities in which we do business and to Supporting Ronald McDonald House Charities and other charities that promote the health and well being of children†. {Gould, 1996 #9} †¢ Profitability MCDONALD’S is committed to growing thei r business on behalf of the shareholders who Provide the necessary capital for the company to grow, they should realize and Attractive return on their investments. No poor company can allow itself to offer charities or help when it itself is in need. Being rentable makes MCDONALD’S able to help whenever necessary and maintain its corporate responsibility principles fresh. †¢ Bigger menu choices / Product strategy MCDONALD’S works together with the Global advisory council whose members are very high profile scientists in the food industry, experts who are looking at obesity and nutrition. With their help MCDONALD’S has created new menu choices including salads and fruits, keeping their serving size standards and making menus more flexible and easier to mix or change. In the last 5 years MCDONALD’S has included milk and water and a variety of ongoing product innovation will include expanded side and beverages choices in addition to new entrees which will give the costumer to feed himself healthier and proportionate. †¢ Clear nutrition information on packaging I think one of the better strengths from MCDONALD’S is that they where one of the first fast food restaurant that started writing the nutritional info on their packaging advocating for balanced active lifestyles and healthier clear nutrition values. MCDONALD’S has been a terrific leader on their work to explore new ways to deliver nutrition and balanced active lifestyle info to the costumers. †¢ External and Internal leadership stances to encourage activity Internal: MCDONALD’S developed and distributed an own crew training video in seven languages on â€Å"It’s what I eat and what I do†, besides that the company makes a great effort distributing materials encouraging balanced, active lifestyles. MCDONALD’S has also introduced training for both crew and management. External: MCDONALD’S introduced â€Å"it’s what I eat and what I do† initiative. Leveraged Olympic and global sponsorships including Olympic day run. In the USA more than 15 million step meters were distributed and passport to play was launched. †¢ Decentralized but not disconnected system MCDONALD’S recognizes the need to maintain a system in which everyone adheres to the same core values, principles and standards. They balanced this with a program called â€Å"Freedom within the framework†. Local business-owner/operators and restaurant managers have the flexibility and responsibility to develop programs that respond to the diversity of the costumers and local market conditions. Innovative excellence program development MCDONALD’S has a very wide selection of programs on its account, everything with the only goal of growing to be better rather than bigger. MCDONALD’S has aligned around a global strategy program called Plan to Win that centers in the five basic P’s, people, products, place, price and promotion. Each P has i ts own vision, specific objectives and key performance measures. This reflects and approach to long-tern sustainable, profitable growth. Other excellence programs are the well known ROIP (Restaurant Operations Improvement Process). It helps improve restaurant performance and accountability as related to quality, service and cleanliness (QSC) and people practice standards. Those standards have been broken down into specific procedures and are organized into 12 systems that deliver the experience the costumers expect. An excellent program is the Mystery shopper program where unannounced and anonymous inspectors visit as costumers and rate the restaurant according to the QSC. Many restaurants around the world include a measurement program based on customer comment that can provide its feedback via toll-number and they also take input from their own staff by an annual employee satisfaction survey. †¢ Ethical Conduct promotion MCDONALD’S Board of directors and top management work to ensure the company’s integrity in all its dealings with shareholders. Their commitment is codified in policies, standards and codes including the Corporate Governance principles, Code of Conduct for the board of directors and code of Ethics for the CEO and Senior Financial Officers because Corporate Responsibility begins at the top. The principles include provisions designed to ensure independent oversight of the company’s assets and business affairs. This strengths could be as well be left out – as today all public concerns do need to have these policies – and if all are having them they cannot be considered as strength anymore but simply as going concern and standard. For MCDONALD’S employees worldwide the overall framework for ethical business practices is the Standards of Business Conduct which applies to all salaried employees worldwide including restaurant managers. It provides rules for handling every ethical issue that might arise or incorporate all laws and policies that apply to the worldwide business. The standards establish a foundation on their core values, provide an orientation to ethical business conduct, offer guidance in a wide range of issue areas and identify resources for questions and concerns. 2. 2 Weaknesses †¢ MCDONALD’S inflexibility Can MCDONALD’S ever excel or are they caught to always offer economic fast food? MCDONALD’S is weak in reacting fast to markets changes. If more and more customers go onto eating BIO or ECO-food e. g. eat – MCDONALD’S could not follow this trend without losing a lot of profit because such a shift in suppliers a) from the point of offer/demand ratio and b) from logistics could not be made in reasonable time. It would impose a threat of a deep profit recession until MCDONALD’S would have adapted their product portfolio. †¢ Not employee-friendly MC DONALD’S is not a worker-friendly environment in the sense that it offers medium to long term working relationships. In the article3 â€Å"Company before Nation† McDonald claims that it has the hostility of workers’ rights union under control. Well – if e. . in Germany you have a workers rotation on average below 6 months – a company never runs into danger of facing workers protection laws. Every worker in Germany for the first 6 months is under â€Å"trial-conditions† employed and can be discharged at any time without any obligations and cost. In an article4 of the Billings Gazette it has been recognized that MCDONALD’S has a hard time in finding and retaining good workers. Gylette, Wyoming reports a weired case that a MCDONALD’S manager needs to outsource the drive-through order taking process via a call center in Santa Monica, California. McDonalds = too much shareholder value driven {Nachrichten, #26} Shareholder value is o ften not the same as Corporate Social Responsibility i. e. if profits go down and down, stocks go down – often more than they actually should and drastic corporate measures have to fix the problem. The levers are not too many and are well known: Where can we save costs? Where can we get cheaper meat? Where can we get cheaper bread? Where can we release workers and run a MCDONALD’S restaurant with less people? As anyone can imagine – some of these actions cannot be socially or environmentally responsible – that is not what money is all about! MCDONALD’S continues to promote unhealthy food Despite diversification of their product portfolio towards more healthy choices MCDONALD’S still continues a saturated fat filled 850 kcal Burger and other unhealthy but tasty food. That could continue to harm their reputation as unhealthy fast food supplier. †¢ Errors on promoted CSR MCDONALD’S claimed that they have not imported meat from rain forest countries but in court it appeared that MCDONALD’S very well had imported meat from Costa Rica and Brazil where rain forests are eliminated to get more green-fields for cows. {Weekly, 1994 #27} 2. 3 Opportunities Attractive and flexible work environment MCDONALD’S offers many job opportunities. External recognition about how MCDONALD’S is a great place to work has become something that dispels myths that are out there. Programs like MC flexibility make their 1. 5 million employees around the world to love and respect their work place. MCDONALD’S takes very serious its responsibility to promote fair, safe and healthful working conditions, effective management policies, diversity and inclusiveness in all restaurants. MCDONALD’S is pride to say that 42% of their world top management started with MCDONALD’S careers serving customers. However – the attractive and flexible working environment has been not rated as strength as personal observation and press reports make it more of an opportunity. An opportunity for society that there is an employer who always hires people which can be helpful for intermediate jobs – i. e. amongst other advantages keeping jobless-rates lower. †¢ Strong environmental work Also this CSR issue has been characterized within the 2006 Worldwide Corporate Social Responsibility Report more as a strength as an opportunity. The web however has contradictory essays and reports and therefore it is rated here as an opportunity. MCDONALD’S restaurants are committed to manage their business by integrating environmental considerations into daily operations and by constantly seeking ways to add value to the community. For example maintaining the restaurants and drive thrum’s clean. MCDONALD’S continues the refinement and implementation of the environmental guidelines on fish sourcing and trough this guidelines at least 18,000 metric tons of whitefish have been shifted from unsustainable sources. †¢ High Supplier profile Setting the highest quality standards possible makes suppliers to jump the hurdle. They have to be able to deliver what we ask for. We look at taste and quality first not efficiency not cost. Frank Muschetto (Senior Vice-president) clears: the profile of the suppliers that we select is consistent with several attributes that we identified years ago that we felt support what MCDONALD’S is about. One of them is their commitment to corporate responsibility if they don’t have it, forget it. We try to pull together with many other companies and in several cases with the whole industry to be proactive against issues that can affects us all like avian influenza. We use our leadership as a tool to participate with the United Nations on the common goal of stopping the sickness. MCDONALD’S participates in a program called Kaleidoscope to test ways to sustain compliance based on dynamic, internal management systems and ongoing worker input. Annual audits are done globally for meat (beef, pork and poultry) processing plants looking forward to maintain animal welfare farms all over the world and not only in the USA and Europe. †¢ Own corporate responsibility Comity MCDONALD’S takes serious responsibility on what comes from being a major player in the global food industry and that’s why the Board of Directors has a standing Corporate Responsibility Committee. It acts in an advisory capacity to the board and to management on policies and strategies. At the global management level, several groups provide leadership on particular types of corporate responsibility issues, for example: Worldwide Corporate relations council who aligns all communications and external affairs for MCDONALD’S globally: oversees and advises on the corporate responsibility efforts. †¢ Truthful brand image MCDONALD’S ensures to maintain and build the trust with all stakeholders and customers with appropriate and truthful marketing and communications. These topics must also be relevant to costumers and consistent with the brand. Being real makes the people believe in our corporation and give support in our many community and global charity programs. MCDONALD’S continuously works to assess and evolve their marketing and advertising standards; they have newly introduced additional training and accountability for those whose work involves brand related communications and or use of MCDONALD’S trademarks. 2. 4 Threats †¢ Scepticism In recent years we have seen e-mails and information on the web that MCDONALD’S is using monster-chicken †¢ Not healthy enough for children For children the product choice still is not healthy enough. What else besides beef and chicken or fish? What about a soy burger, vegetable burger or fibre containing Deserts or simple deep frozen, quick steamed vegetable bowl (containing at least 80% of the vitamins and enzymes). What about offering small gifts or special packages as a premium for a healthy product or a premium system for kids who eat healthy? A threat if the competition comes up with such a system. †¢ Beef/Poultry/Fish Health Problems Serious initiatives in the US against growth hormone and or antibiotic stuffed cows, bird flu epidemics in the US and Europe, high contents of heavy metals in fish could cause sales slumps and cause profits and stocks to fall. MCDONALD’S as a giant in the fast food business could act to slow to avoid large corporate damage. †¢ Made in China syndrome Labour exploitation in China for the production of McDonalds â€Å"happy meal† toys. †¢ Profit pressure The pressure to deliver shareholder value will force MCDONALD’S to not follow up the one or other CSR issue. No MCDONALD’S CEO will risk his post at the cost for the implementation of a CSR if it would not at the same time create immediate value for shareholders. †¢ MCDONALD’S a major contributor in global warming MCDONALD’S is considered to be the largest consumer of beef. Examples that MCDONALD’S cattle are being fed on former rain-forest territory, the excessive amount of cattle which produce huge quantities of methane, heavy use of chemicals, fertilizers and pesticides just to keep cattle breeding and MCDONALD’S burgers profitable could develop a future threat of conscious consumer choices to visit a MCDONALD’S restaurant or not. †¢ Local fast food restaurants Local fast food restaurants that are don’t have such purchasing power and are less environmental threatening as giants such as McDonalds enjoy better quality reputation, because they buy from local butcheries, or use products e. . made in Austria i. e. free running chickens, approved Austrian grown cows. †¢ MCDONALD’S has the power to create demand Rather than reacting to the free play of market forces MCDONALD’S with its marketing budget of 1bn USD is able to create demand {Phil Lyon, 2007 #28}. That can be a threat for a society and its cul ture. 3. Task 2: McDonald's Plan to Win Strategy 3. 1 Implementation of key elements new Strategies McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s â€Å"strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion†. {McDonald's, 2008 #20} McDonald’s also incorporates geographical strategic plans. In the U. S. , McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner. In the beverage business, McDonald’s starting introducing new hot specialty coffee offerings on a market-by-market basis. In Europe, McDonald’s uses a tiered menu approach. This menu features premium selections, classic menu, and everyday affordable offerings. They also â€Å"complement these with new products and limited-time food promotions† {McDonald's, 2008 #20} In the Asia-Pacific, Middle East, and Africa markets, McDonald’s strategic plan is focused around convenience, breakfast, core menu extensions and value. With McDonald’s overall strategic plan and its geographical strategic plan, the company should start to see more positive financial results. McDonald’s incorporates several organizational strategies. Some of the organizational strategies consist of better restaurant operations, placing the customer first, menu variety and beverage choice, convenience and day part expansion, and ongoing restaurant reinvestment. McDonald’s plans to â€Å"continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience, while relying on our strengths in developing, testing and implementing initiatives surrounding our global business drivers of convenience, branded affordability, day part expansion and menu variety† {McDonald's, 2008 #20}. One of the ways McDonald’s can obtain a positive net income is to maximize efficiency in its restaurant operations while at the same time placing the customer first. With strategic focus on menu variety and beverage choice, McDonald’s is hoping for increased sales and guest counts. With their convenience and day part expansion initiative, McDonald’s is hoping to increase efficiency in its drive-thru pick up window, and the company is staying open later for those late-nighters who want a quick bite to eat. McDonald’s also has locally owned and operated restaurants which â€Å"are at the core of their competitive advantage and makes them not just a global brand but a locally relevant one† {McDonald's, 2008 #20}. They are in the process of remodeling and upgrading its franchises. The company is also opening up McCafe’s â€Å"with the expectation that the gourmet coffee shop would move it closer to its goal of doubling sales at existing U. S. restaurants over the next decade† {Peter, 2007 #19} A couple other organizational strategies are branded affordability, and the development of their employees starting with recruitment and training and leading all the up to leadership and management. 3. 2 SWOT Analysis and Plan to Win McDonald’s strategic plan is influencing their marketing efforts by building better brand transparency. They want their image to be recognized globally. They are enhancing the customer’s experience. â€Å"Across their markets, they are making is easier for customers to enjoy a great McDonald’s experience. They are introducing drive-thrus to the increasingly mobile populations in China and Russia, while in the U. S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly† (McDonald's, 2008, 13). In Germany, McDonald’s has a reimaging program that includes adding about 100 McCafes. They are also installing new kitchen operating systems so that they can continue to deliver high food quality. McDonald’s has already renovated about 10,000 restaurants world wide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. â€Å"By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and satisfy their demand for choice and variety† {McDonald's, 2008 #20}. Types of marketing mix that McDonald’s use to achieve their marketing goals are longer operating hours, everyday value meals, and optimizing efficiency in the drive-thru. McDonald’s also uses marketing campaigns. In 2007, McDonald’s used the Shrek movie to give children a choice between milk, fruit, or vegetables as part of their Happy Meal. In addition to their commitment with children, McDonald’s is building their brand image â€Å"with innovated marketing transporting ideas across borders and using I'm lovin’ it to deepen their connection with customers who love their food and the unique McDonald’s experience† (McDonald's, 2008, 17). In the 2008 Olympics held in Beijing, McDonalds offered the Beijing Burger, Carmel and Banana Sundae, and Rice Sticks. They featured nine Olympic and Paralympic athletes on their packaging. In Australia, McDonald’s held a marketing campaign where the people could decide what name to give its new hamburger. The name that won was Backyard Burger. With marketing campaigns like these, McDonald’s is trying to create a better brand image. Other organizational and marketing strategies are â€Å"creating stronger bonds of trust by being accessible and maintaining an open dialogue with customers and key stakeholders† {McDonald's, 2008 #20}. The company is reinvesting approximately $1. 9 billion into their restaurants primarily to reimage existing restaurants and build new ones. McDonald’s is also moving towards a more heavily franchised, less capital-intensive business model. Although in some countries, such as China, this is not permissible due to governmental laws. With McDonald’s growing global brand image and its emphasis on the five factors of exceptional customer service, this should help them increase sales and net income. With the initiative of remodeling and upgrading existing franchises, this will give the customer a more pleasant and friendly place to dine out at. With McDonald’s marketing campaign for the 2008 Olympics, they were an integral part of the games and this only enhanced McDonald’s brand image in a positive way. With the recruitment and training initiatives for current employees or future prospects, this will allow McDonald’s to achieve less of an already high turnover ratio. 4. Task 3: McDonald's 2003-2009 Strategy 4. McDonald's Dynamic Strategy With an established brand, visible leadership and solid financial performance in its own sector, McDonalds has the foundations and options for future expansions. As stated previously, the group sees expanding markets/culture/economies as their future growth areas. One possible strategy for expansion would be to increase the local branding of menus within these markets. There is an opportunity to not only increase the number s of cities, but to make the McDonalds name more recognizable as a restaurateur abroad. This would require the company to manage more outlets, rather than encouraging franchisee, which requires a committed financial expansion. Increasing its market share or at least visibility would heighten the brand awareness, {Kotler, 2005 #18}. The costs associated with a strategy to increase partnerships would be far less than if they attempted to expand to more developing countries and cities on their own. McDonalds is currently aligned with a limited number of government partnerships- China, Vietnam, {Thomm, 1996 #21}. The risks are much lower but there is a risk to brand dilution with regard to consistency of the services provided and perfected by the McDonald's familiarization, management processes and manufacturing and production specifications. McDonald uses existing marketing communication methods such as TV, press, magazines, outdoor posters and taxi sides, all featuring the distinctive logo. Advertising is used to encourage people to try the food items, {Kotler, 2008 #17} and to raise awareness of new product developments and new openings. Nonetheless the marketing department could try increasing and adapting new marketing tactics. Also 18 percent of turnover is spent on advertising; for comparison, the industry standard is five to seven percent. {Kotler, 2008 #17}. The budget must be focused. To further capture the developing markets through local promotions, local endorsements and local menu planning would lead to significant decreases in advertising costs but an increase in the appropriateness of the message to the consumers in the target markets. Using Ronald McDonalds as a marketing tool has certain problems with the younger generation. The traditional iconic figure has less in common with the youth culture, {Schlosser, 2002 #22} and the more reference based figure is more suitable, such as Justin Timberlake. Consumers have a personal affinity with him, {Kotler, 2005 #18}. This must be exploited further. This loyalty could be captured to increase the market share of the Brand. The perception of American quality is paramount to many multinational businesses and exploited the world over. This can be seen in education, engineering and law. McDonald could emphasize the quality and superiority of service provided by the Americans through it's advertising in other countries. Nonetheless, {Schlosser, 2002 #22} states that the traditional American style that once gave them its unique status is now its disadvantage. International markets no longer lust for the novelty of eating out in an American ‘dinner', so McDonald's need to change this and meet the needs of specific markets rather than using a uniform approach. The company should increase advertising in its new target markets, and stress the quality and affordability of service in all promotions. Also, consider alternative marketing strategies such as a credit card rewards program, corporate sponsorship of events, and well-publicized donations to charity. The optimal solution for McDonalds is to expand their service by offering to more cities, offering services in the expanding markets and increasing their promotion. During traditionally low seasons, tactical promotions and price advertising could also used to maximise restaurant capacity, commonly known s yield management, {Kotler, 2005 #18}. McDonalds has the capability to sustain itself as one of the leaders in the worldwide food retail industry, {Thomm, 1996 #21}. With careful planning and effective marketing, they can achieve this. In addition to communication to consumers, they must utilise their community database, partnerships, retailers and community sponsors, who are the primary i nfluences of the target market and who can familiarise all consumers with the products, benefits, and associated benefits, the core and peripheral attributes of the McDonald brand and the products/services. 4. Strategies Comparison McDonald's has many competitors to compete with in the fast food industry for example Burger King, Wendy's, and Arbys see Chart 1. Burger King is McDonald's biggest competitor with their hamburgers being fire grilled rather than fried; both have the kid's meals with the little toys to attract the younger children and combo meals for the young adults. McDonald's and Burger King both have prepaid cards whereas Wendy's and Arbys do not have these cards. Wendy's offer not only hamburgers, but they have taken it to their loaded bake potato, chili, and the frost, and compete with the children's meals. Arby's also has a nice menu besides the average hamburgers, they also have chicken salad sandwiches, roast beef sandwiches, and a kids meal that includes a healthy meal such as fruit mix, turkey and ham sandwiches without the crust, with no toys included. Burger King, Wendy's, Arby's are just a few of McDonald's competitors that McDonald's would have to compete with depending were you are located. There may be more or less competitors but at this time McDonald's, Burger King, Wendy's, and Arby's all offer the hamburger's, fries, chicken sandwiches and the kid's meal, they also have sweepstakes that you can enter to win prizes. McDonald's competitive landscape for our product, the McDonald's Reward Card, that we have presented would attract McDonald's target consumers between the ages of 18 and 25, will surely bring a higher profit for the McDonald's corporation. The McDonald's Reward Card will offer the opportunity for our customers to earn points which they will be able to purchase not only food, but to purchase the entertainment that they enjoy, there is no contest that they have to enter and wait for a drawing to win a prize. When they purchase at McDonald's they earn points, it is a win situation, McDonald's rewards their customers for selecting McDonald's to feed them with the variety of great fast food. {Kotler, 2009 #23} Chart 1 McDonald's Competitors [pic] 5. Task 4: McDonald's Competitors Performing a competitor analysis will enable McDonald's to understand the industries and market in which it operates. The use of Porter's Five Forces will help them to analyses the dynamics of the market and understand the critical success factors in order to understand its position. Four types of competition {Kotler, 2005 #18} Brand competition |Industry competition |Form competition |Generic competition | |Burger King |Restaurants |Supermarkets |Trends: clothing, music, | |Domino's Pizza, Inc. |Non-fast food outlets |Food market stalls |fashion | |Independent fast food outlets e. g. |Cafes |Eating at home |Consumer durables | |fish and chips, kebab places |Coffee shops | |Similar priced products | |Papa John's In ternational, Inc. | | | |Subway | | | | |Wendy's International, Inc. | | | | |Yum! Brands: KFC, Pizza Hut | | | | 5. 1 Wendy's The first Wendy's restaurant opened in Columbus, Ohio on November 15, 1969 at 257 East Broad Street by Dave Thomas (Wendy's. om). In 1972, the first franchise outside of Ohio was opened in Indianapolis, Indiana. Wendy's is known as the home of the old fashioned hamburger, and is the Number 3 hamburger chain by sales. Its sales trail only McDonald's and Burger King. There are almost 6,700 Wendy's restaurants worldwide; about 78% of them are franchised† (Hoover's fact sheet). Wendy's offers high quality in customer service and allows customers to have their hamburger made the way they want it done. Wendy's is on the New York Stock Exchange under the symbol of WEN. Dave Thomas when he started Wendy's new the secret to success was to offer quality to customers and to the Franchisees that would own Wendy's restaurants. Wendy's in the early 90's developed a four part strategy that world guide the company to refocus on what they do best, and grow the business into the next millennium. The first strategy is operating restaurants that exceed customer expectations on each visit. This is vital in today's competitive fast food business, due to the vast amount of choices consumers have, and one bad experience can lose a customer for life. This concept is easily done on paper, but with shrinking margins and lack of ability to attract highly skilled employees this strategy is difficult to implement. Although, Wendy's seems to have instilled these beliefs into management and has seen considerable success practicing these beliefs. This strategy is the most important compared to the other three, because if you don't have any customers it does not matter how good your food is, you won't stay in business. Many companies forget that customer service is vital in staying in business and to growing the market. Fast food restaurants are one area that customer service is vital for survival. The second strategy is accelerating new store openings and strengthening the quality of other Wendy's locations. This is vital for Wendy's to keep its competitive advantage is the ability to keep stores clean and modern. This strategy is being implemented and seems to be quite successful in helping older Wendy's become profitable again. Wendy's philosophy is not to be the cheapest, but to be the best. With this philosophy Wendy's has to offer newly designed restaurants with modern design to attract the cliental that will pay extra for fast food. Wendy's seems to be doing an excellent job in creating an atmosphere that is conducive to customers spending a little more to get a lot more. Wendy's has introduced salad bars, buffets, and has made the atmosphere friendlier to patrons. The third strategy is to aggressively increase penetration by adding new units or so called â€Å"special sites†?. This an excellent way to grow Wendy's market, these small restaurants are cost effective and promote the Wendy's products to more families and truck drivers. Wendy's is aggressively targeting the traveler in this area, which seems to be a good move to make Wendy's the fast food of choice for travelers. Furthermore, these small restaurants are cheaper to develop and share the costs with gas stations they are affiliated with. The last of the domestic strategies is its marketing strategy to promote its perception of promotional items at the upper end of the price spectrum. This has been successful with the spicy chicken sandwich and pita sandwiches, which both have had considerable success. In the fast food business Wendy's has differentiated itself from McDonalds and other fast food restaurants by offering high quality food items consumers are willing to pay for. In this area Wendy's has dominated the market and has seen considerable success. Wendy's needs to keep utilizing this strength by introducing new products, and try not to go head to head with McDonalds. http://www. nzherald. co. nz/property/news/article. cfm? c_id=8&objectid=10537499 http://www. nbr. co. nz/article/wendys-plans-nz-expansion-36423 5. 2 Jack in the Box Although Jack in the Box remained strong with widely varied menu items and unique marketing strategies through the E. coli disaster of 1993, the current economic slump in the fast food industry highlights serious controversy over the company's new growth strategy and accounting practices (Bauder). In this article, analysts are challenging the accounting practices of a San Diego-based company, Jack in the Box. In their 10-k report, Jack in the Box is listing franchise sales as â€Å"other revenues†, which on paper triples their operation income to $9. 1 million. David N. Allen of investment banking firm Caris & Co. , questions this practice as the, â€Å"Selling of company assets to franchisees is not the same as selling a food product†. He goes further saying that the company should separate operating earnings from non-operating income. Reporting gains from asset sales to franchisees is inappropriate. Jack in the Box countered this claim by stating that other fast food chains use the same accounting practices, which is consistent with GAAP (Generally Accepted Accounting Principles). In defense of Jack in the Box, Bud Leedom, senior analyst at Wells Fargo Securities believes that Jack's accounting technique is specifically disclosed to Wall Street and as such is not troubled by their practices. Yet, on the other hand, David Geraty of RBC Capital Markets points out that by employing this practice the company is simply compensating softer sales with gains for other revenues. Platinum Inc. s responsible for the preparation, integrity, and fair presentation of its published financial statements. For my organization, The Platinum Company, the corporation maintains a system of internal control over financial reporting which is designed to provide reasonable assurance to management and the Board of Directors regarding the preparation of reliable published financial statements. The financi al statements must follow the GAAP guidelines in preparing reports and recording transactions. To insure proper accounting Platinum utilizes their own internal audits and employs a well-known public accounting firm Deloitte & Touche, LLP. Like Jack in the Box, Platinum's Annual Report 2002, under other (loss) income, reports losses due to financial bankruptcy in one of their investment companies and reports financial gains because of investments in unconsolidated affiliates. To make recommendations in improving the companies financial reporting would be difficult at best. Platinum extremely strict and assertive in their internal audits to ensure proper procedures are followed. The companies internal accountants work together with Deloitte & Touche's accountants to preserve proper ethical conduct and moral principals are monitored. Business ethics are proper ethical conduct that implies that you not only consider what is in your best interest, but also what is in the best interest of others. Moral principles are what guide the conduct of individuals. For example, regarding financial reporting, WorldCom used a liberal interpretation of accounting rules when preparing financial statements. In an effort to make it appear that profits were increasing, WorldCom would write down in one quarter millions of dollars in assets it acquired while, at the same time, it included in this charge against earnings the cost of company expenses expected in the future. The result was bigger losses in the current quarter but smaller ones in future quarters, so that its profit picture would seem to be improving. Additionally, the unethical financial reporting decision that WorldCom made cost the company's reputation and most importantly the business. In my opinion, if Platinum continues to follow GAAP guidelines in their reporting practices, they should be exempt from the public analysis, Jack in the Box could not avoid. Unless there is a public build of support in order to challenge GAAP guidelines regarding listing franchise sales as other revenue, this accounting practice is just and fair. An organization must put business ethics in front of profits to ensure that they do not become another WorldCom tribulation http://www. marlerblog. com/2006/07/articles/legal-cases/thirteen-years-since-jack-in-the-box/ 5. 3 Sonic In 1953 Sonic Corporation was founded by Tony Smith in Shawnee, Oklahoma under a different name of the Top Hat. Tony Smith started the company as a drive-in restaurant featuring hot dogs, hamburgers, and french-fried onion rings. In the mid-50s Smith was asked by Charles Pappe for assistance in establishing a similar restaurant in a rural town also located in Oklahoma. This was the beginning of a partnership between the two men. In 1991 Sonic Corporation was the fifth largest chain in the fast-food industry, servicing in the hamburger segment, behind McDonald's, Burger King, Hardee's, and Wendy's. Sonic has and is still carrying the tradition of being a high-quality franchise-based organization in the Sunbelt states. The following case will be broke down into five different stages beginning with early strategies, problems, new strategies, a ratio analysis, and a recommendation. Tony Smith introduced the Top Hat as a drive-in restaurant that reduced start up cost by not having eat-in space. This new restaurant featured drive-in stalls for automobiles that were equipped with a two-way intercom enabling customers to order as soon as they drove in, opposed to conventional practices of waiting for a carhop to take an order. Delivery of the fresh fast-quality products was doing to the unique design of the kitchen, and the use of carhops. Sonic Corporation preferred to do things as easy as possible and avoid sophistication. Another strategy Smith implemented was a collection of franchise royalties. This was done in a way such that Sonic franchise holders were required to purchase printed bags at an additional fee that Smith arranged through a paper-goods supplier. Pyramid-type selling arrangements were formed by franchisees in money making efforts by starting other franchises through friends. This lead to original store managers having a percentage of their own store earnings and a portion of the new operation of the recruited friend manager. This idea further developed to multi-ownership of almost all Sonic operations as store managers were also part owners. This concept of pyramid-type selling carried Sonic forward with rapid growth. In the later-70's almost one new sonic store opened per day. The rapid expansion of Sonic was growing at an uncontrollable rate. With such rapid growth some stores failed. In these cases Sonic assumed control over failed franchise units, driving the number of company owned restaurants from 3 in 1974 to 149 in 1979. This rapid expansion of Sonic was a short lived frenzy which resulted in numerous failures do to lack of planning, market analysis, and requirements for unit managers. The company was forced to operate the failed franchise as company units in most cases, to protect the franchise name and reputation. A loss was posted in 1980 as Sonic began closing some operations. Reason's for the closings were that the board tighten its control which created an operation that left no services being provided to the franchise holders, including no advertising cooperation's, no management training services, and no accounting services. In 1983 Smith decided to go outside the company’s parameters and appointed a professional manager that had no ties to Sonic Corporation in any shape, form, or know how. Stephen Lynn was introduced to Sonic Corporation as president and chief executive officer. The new comer, Lynn, was granted the decision to form his own management team. This team was formed and implemented by mid 1984. By implementing his own management team Lynn could begin to take problems head on, after ridding the board members and franchise holders that had significant conflicting interests that clouded the better judgement of Sonic. In an attempt to turn the organization around, Lynn and his newly formed management team set forth on a strategy that had three key factors: a. attack problems concerning franchise attitude and Sonic's image; b. improve purchasing c. Improve communications. A co-op program along with advertising also helped improve communication and relations between franchise owners. The company's strategies also reached out further as it offered annual conventions, provided training for managers, and training facilities with a test kitchen. The company went even further to offer help in areas of franchisees location sites and construction support to sales and profit improvement counseling. Another strategy was to upgrade the stores appearances and improve energy efficiency. Most franchise owners purchased a â€Å"retrofit† package that offered the mentioned upgrade features. These new designs generated an average of 20 percent increase in unit sales in addition to the overhead savings. Sonic Corporation is an ever improving company that is striving for efficiency, freshness, and quality. Over the life of the company management has always been trying to increase profits and taking steps into the future. Sonic Corporation also learned that in maximizing profits one must incorporate all the ingredients from attitudes of the mangers and owners to the products they offer their customers. In looking at the ratio's Sonic Corporation is looking stronger every year. I would recommend keeping management minds striving to new and better innovations that could again revolutionize the company as it had under the leadership of Mr. Lynn. In doing so the company assures itself and ever lasting life in the fast-food drive-in industry. http://www. referenceforbusiness. com/history2/39/Sonic-Corp. html 6. References Gould, W. (1996). McDonald's. London, Cherrytree Books. Kotler, P. (2005). Principles of marketing. Harlow, Financial Times Prentice Hall. Kotler, P. and G. Armstrong (2008). Principles of marketing. Upper Saddle River, NJ, Pearson/Prentice Hall. Kotler, P. and K. L. Keller (2009). Marketing management. Upper Saddle River, NJ, Pearson/Prentice Hall. Kroc, R. and R. Anderson (1987). â€Å"Grinding it out : the making of McDonald's. † 218 p. , [24] pages of plates. Love, J. F. (1995). McDonald's : behind the arches. New York, Bantam Books. McDonald's (2008). â€Å"Annual Report. Retrieved September â€Å". http://www. mcdonalds. com/corp/invest/pub/2008_annual_shareholders. html Nachrichten, F. http://www. finanznachrichten. de/nachrichten-2006-04/artikel-6317906. asp Peter, J. P. and J. H. Donnelly (2007). Marketing management : knowledge and skills. Boston ; London, McGraw-Hill Irwin. Phil Lyon, S. T. a. S. S. (2007). â€Å"The Ritzer debate continued. † http://www. mcspotlight. org/media/reports/silverstone. html Schlosser, E. (2002). Fast food nation : what the all-American meal is doing to the world. London, Penguin, 2007. Thomm, R. (1996). Business China : a practical insight into doing business in China. Chatswood, N. S. W. , Business & Professional Publishing. Weekly, B. (1994). â€Å"McLibel Support Campaign. † summary and extracts of court proceedings in High Court case: McDonald's versus Helen Steel and Dave Morris. . Biblography Gould, W. (1996). McDonald's. London, Cherrytree Books. Kotler, P. (2005). Principles of marketing. Harlow, Financial Times Prentice Hall. Kotler, P. and G. Armstrong (2008). Principles of marketing. Upper Saddle River, NJ, Pearson/Prentice Hall. Kotler, P. and K. L. Keller (2009). Marketing management. Upper Saddle River, NJ, Pearson/Prentice Hall. Kroc, R. and R. Anderson (1987) . â€Å"Grinding it out : the making of McDonald's. † 218 p. , [24] pages of plates. Love, J. F. (1995). McDonald's : behind the arches. New York, Bantam Books. McDonald's (2008). Annual Report. Retrieved September â€Å". http://www. mcdonalds. com/corp/invest/pub/2008_annual_shareholders. html Nachrichten, F. http://www. finanznachrichten. de/nachrichten-2006-04/artikel-6317906. asp Peter, J. P. and J. H. Donnelly (2007). Marketing management : knowledge and skills. Boston ; London, McGraw-Hill Irwin. Phil Lyon, S. T. a. S. S. (2007). â€Å"The Ritzer debate continued. † http://www. mcspotlight. org/media/reports/silverstone. html Schlosser, E. (2002). Fast food nation : what the all-American meal is doing to the world. London, Penguin, 2007. Thomm, R. (1996). Business China : a practical insight into doing business in China. Chatswood, N. S. W. , Business & Professional Publishing. Weekly, B. (1994). â€Å"McLibel Support Campaign. † summary and extracts of court proceedings in High Court case: McDonald's versus Helen Steel and Dave Morris. http://www. referenceforbusiness. com/history2/39/Sonic-Corp. html http://www. marlerblog. com/2006/07/articles/legal-cases/thirteen-years-since-jack-in-the-box/ http://www. nzherald. co. nz/property/news/article. cfm? c_id=8&objectid=10537499 http://www. nbr. co. nz/article/wendys-plans-nz-expansion-36423

Analysis chinese banking industry systems, processes and products Essay

China’s rapidly developing economy is dependent on a banking industry which is controlled by the state. The four public banks of China and the People’s Bank of China have a strong hold over the country’s financial system. The advent of China in WTO in 2001 and globalization has led to a felt need for transformation in the Chinese economy to integrate it with the global economy. The financial sector will need to support this change. An assessment of the state of the Chinese banking industry at present and its future growth is therefore essential. Ideally this can be achieved by benchmarking a Chinese bank and a European Bank, for which purpose a case study of Bank of China and HSBC, London has been carried out. The aim of the research is therefore to undertake an analysis of the Chinese banking systems, processes and products through a case study of the above mentioned banks while the objectives of the research indicate assessment of the overall state of the Chinese banking industry, evaluate implementation of various processes and systems and highlight the areas for growth. A deductive – inductive approach with emphasis on case study has been adopted for the research. Apart from extensive secondary research through literature survey, a detailed questionnaire has been administered to 40 clients across a wide cross section of personal and corporate customers of Bank of China and HSBC, London which has formed the key primary resource for the research. A review of the research sources and questionnaires has revealed that Bank of China has been able to quickly adapt itself to the changing requirements of a globalised financial environment and is providing both personal as well as business banking services to meet its customer’s requirements. HSBC which considers itself as the World’s local bank is providing a complete package of services to the corporate as well as personal client and has been successful in implementing the same throughout the World. Its initial forays into China have also underlined the success story. The quality of service in both the banks was seen to be similar, however HSBC provided better follow up and also more services on the internet than Bank of China. The growth trajectory of both the banks indicates that, while HSBC is attempting to grow throughout the World; Bank of China is growing primarily within the Chinese banking system. There are a number of areas for improvement identified in the research which could well be undertaken by Bank of China to include greater efficiency and better customer service, improvement in technology and customer follow up and exploitation of niche areas such as credit cards. The entry of foreign banks will see greater competition in the Chinese banking sector. The need for Chinese banks to adopt global practices is also underlined and it is anticipated that the entry of more global banks as HSBC in China will provide the impetus to this growth. ANALYSIS CHINESE BANKING INDUSTRY SYSTEMS, PROCESSES AND PRODUCTS: A CASE STUDY BANK OF CHINA AND HSBC, LONDON Chapter 1 – Introduction China is a rapidly growing economy which is considered as a model for emerging countries all over the World. The dynamism of an economy lies in an efficient and effective financial system led by the banking sector. The impact of the banking sector on economic growth in China and its contribution to public life has been a matter of debate over the years. China has a banking system which is controlled by the State and thus has a very large influence on the economy. Exclusively controlled by the central government, the four state banks and People’s Bank of China have a very strong hold over the financial system both internally and externally. (China’s Economic System, 2004). However the rapid growth of China towards a socialist market economy has been affecting the banking sector in various ways and Chinese banks have undertaken measures to enhance their efficiency and contribute effectively to the economy. China’s entry into the WTO in 2001 has also necessitated adoption of liberalized norms in line with the global banking and financial industry. To what extent China has been able to adapt these new practices and how these are affecting or likely to affect the growth of the Chinese economy is an issue of great relevance. As China’s economy gets increasingly integrated with the global economy, its financial markets will have to support this union. It is therefore essential to assess the state of the Chinese banking industry at present and its trajectory of growth in the future. A case study approach to this issue is considered relevant for which Bank of China and HSBC, London are selected for review of the systems, processes and products to provide an insight of the financial needs and their fulfillment today and tomorrow. Bank of China is one of the principal banks in the country; it is one of the four banks which are owned by the State in China. (About Bank of China,. 2006). It has been a key central bank of China which has carried out international exchange as well as provided funds and been a point for foreign trade in the country over a period. It conducts a wide variety of services including commercial banking, insurance as well as investment banking. It is one of the largest banks in Asia and has been placed at the 18th position by the Banker Magazine in 2005. (About Bank of China,. 2006). It also has a large overseas presence in 27 countries. The systems, processes and practices followed by the Bank of China would be a good indicator of the state of the Chinese banking industry in both its internal and external dimensions. HSBC is an epitome of a modern bank. Based in London, the Bank had its origins in provision of finance for trading with China in the 19th Century. After China adopted a nationalist communist economy and banking system, HSBC’s presence in the country was limited. However the bank has now retuned with a vigor and strives to make inroads in the highly competitive financial sector where banks with a state monopoly are said to enjoy unprecedented advantage. The Bank is also taking benefit of its old legacy and is already earning profits to the tune of $ 161 million for the first half of 2005. (Schuman, 2006). HSBC in some ways can be seen to be a competitor to the Bank of China, though its reach within China is limited to only 20 branches. (Schuman, 2006). The investments made by HSBC in Chinese financial sector are reported to be $ 4 billion and include almost one fifth stake in China’s fifth largest bank, Bank of Communications and its second largest insurance company, Ping An Insurance with which the Bank of China too has many contracts. A comparative analysis of BOC and HSBC would thus provide us an effective understanding of the state of the banking industry in China in all its operational facets. The dynamic nature of the research will entail application of a deductive-inductive approach which in practice is adopted by a number of similar research projects keeping in view the importance of both qualitative and quantitative findings.

Change theory Assignment Example | Topics and Well Written Essays - 750 words

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Theories of management (learning diary) - Essay Example Through this session, a deeper understanding of reasons why leadership and management are so closely related has been obtained by studying the trend of evolution of leadership concept with respect to management. Most of these theories have been based on different attributes of leaders, which made scholars define leadership and theorists theorize the concept of leadership. When these attributes no longer seemed to exist and/or situations had changed, the contingency theory of leadership emerged based on incidents and changing nature of management and demands. A concise view of leadership from emerging contemporary perspectives of management further throws light on how leaders are made and what makes leaders emerge. different viewpoints and ideologies. In general, it can be explained in relative terms based on the qualities and skills possessed, and situations. The underlying essence of leadership is to guide others and set new directions to achieve a goal or accomplish a task. The present leadership philosophy is an outcome of great leaders’ achievements of past. The leaders of past were not involved in management, but were able to direct, guide and mobilize people systematically for achievement of a common cause. Most of such known leaders from history are remembered even today, for example, Albert Einstein, Martin Luther King, Mahatma Gandhi to name a few, were leaders who changed the world through their principles based on humanity and spirituality. On the contrary, Adolf Hitler is also counted among the leaders of the world known for his able administration and creation of strong military regime that was able to devastate the entire world. These perspectives could be the precursors of development of different leadership concepts. the first to define leadership based on management functions including planning, organising, leading and controlling.

Reading response 9 Essay Example | Topics and Well Written Essays - 500 words

Reading response 9 - Essay Example From my personal experience, Arabic students who are learning English manifest a form of interlanguage. I observed that students are having problems in learning English because of the variations of Arabic, where they have Standard and Colloquial varieties and regional dialects affecting their learning of TL phonology through NL phonology. TL phonology problems come from syntax and grammar differences between NL and TL, which impact how L2 learners read the TL. The more that the students relied on a specific or multiple Arabic dialects to translate TL, the more difficult it seems for them to understand TL. However, some students showed interlanguage in how they bridged NL and TL phonology without depending on NL or TL phonology. I noticed how interlanguage may be allowing these students of creating a new mental system that goes outside NL and TL language structures. A universal language mental system can help explain how SLA happens when phonological variations are strong enough and c ertain sounds and syllables present in TL are not practiced in NL. Perhaps this is the way of the human brain of optimizing phonological domains through interlanguage strategies. It would be interesting to gather empirical evidence to back up the use of interlanguage strategies. In Chapter 20, second language speech production’s importance in developing particular SLA skills is discussed through related language theories. Accented TL is an ongoing center of SLA study, especially as age and other social and biological factors affect it. I am interested in focusing on the validity of the Critical Period Hypothesis (CPH) to Arabic L2 learners. Though there are variations to age ranges, CPH basically argues that there is an age limit (from five to fifteen years old) in which students learn the native accent of TL. Some aspects of CPH are true, depending on different internal and external factors. In my teaching

The Determinants of Sustainable Competitive Advantage in International Research Paper

The Determinants of Sustainable Competitive Advantage in International Marketing - Research Paper Example Same way many other prominent companies failed to develop properly in international market because of their misinterpretations and wrong perceptions about the sustainable competitive strategies in international market. Knowledge management, cost leadership or differentiating, innovation or development of new products, timing of introduction of new products, customization of the product and technology, superior technology, ability to adapt with local cultures, commitment to demonstrates corporate social responsibility, geographic dispersion of activities etc are some areas in which international companies should focus more to sustain their competitive advantage in international market. This paper analyses various determinants of sustainable competitive advantage in International Marketing. A company that operates in a small number of countries or within in a restricted business sector may believe that its competitive advantage comes from low cost manufacturing, design capability and d istribution efficiency. However when exposed to global competition it may find that its own competitive advantages cannot be transported to new countries and discover, instead, that regional or global competitors have even greater competitive advantage in their own domestic markets as wells as in the target country market (Doole & Lowe, p.430). Knowledge management is one of the major determinants of competitive advantage in international market. As mentioned earlier, Parker Pen Company tried to sell its products in international market using same marketing strategies everywhere. Parker Pen was the market leader in the manufacturing of writing equipment once. But now same thing cannot be said about them because of the huge setbacks they received from international market during the initial period of globalization. â€Å"The idea of selling pens the same way everywhere did not sit well with many parker subsidiaries and distributors. Pens were indeed the same, but markets, were diffe rent† (Marketing across cultures, p.195). Parker thought that for the same product, same marketing strategy is enough everywhere. They failed to recognize the fact that the global market is different from domestic market and it needs customized marketing strategies for each market outside, United States. It should be noted that Tiger Woods could be a good brand Ambassador in American conditions whereas in Indian conditions, instead of Tiger Woods, Sachin Tendulkar or Shah Ruk Khan could be a better brand ambassador. In short, local knowledge is essential for international companies to formulate better business strategies for each global market in which they try to sell their products. â€Å"Traditional approaches to developing competitive advantage focus on developing a positional advantage relative to competition based either on cost leadership or differentiating the product /service offering† (Craig and Douglas). However, in international market, cost leadership or di fferentiation strategies alone may not help an organization much. For example, most of the Chinese products are believed to be the cheapest products available in the global market at present, compared to the products from competitors. China is focusing more on quantity rather than quality while producing goods. Cheaper price may help Chinese companies to sell their

Global Assessment of Haiti Part 2 Research Paper

Global Assessment of Haiti Part 2 - Research Paper Example Pneumonia and Influenza are the major diseases that cause a lot of deaths of the Haitian population (World Fact book, 2013). The country is vulnerable to environmental impacts like harsh climatic changes and stressors of the environment like hurricanes and earthquakes. The country has presidential system and the national assembly is bestowed with law making processes. Use of voodoo doctrines is part and parcel of the Haitian population and the whole population is strong believers of the Roman Catholic. Lack of proper planning possesses a lot of challenge to the health sector of this country; because of the poor organization, most of the health care management is conducted by NGOs like Cuban Brigade and other bodies like MSF. Because of the natural calamities like earthquakes, the free medical services offered by the government had to stop because the government became bank craft and could no longer provide for the needs of the population. The old generation and the youngsters are the most susceptible members of the society based on outbreak of diseases like cholera. The case of cholera has been epidemic due to the poor hygiene and sanitation in the country. The vivid impact of the health issues is death among the vulnerable population. Due to the escalation of the health standards in the country, many international bodies have decided to offer a helping hand and some of such bodies are Pan American Health Organization (PAHO) and Partners in Health Organizations (PIH). These international bodies have embarked on vaccination programs against cholera to reduce its escalating effects. Another international body that has played a major role is UNICEF. This body has been engaged in vaccination programs to reduce the spread of cholera and other water-borne diseases. Haiti health concern with millennium development goals Some of the goals of the millennium development are eradication of extreme poverty rate and hunger, reduction of mortality rate among children below t he age of five years, improvement of maternal health care, and combating HIV/AIDS and malaria diseases (Adam et al., 2006). Based on the findings of Haiti case, nearly all the millennium goals have not been met. Haitian population still suffers from poverty since most of them live below the poverty line and this therefore, means that the first goal of eradication of poverty by millennium development has not been achieved. The second goal is reduction of mortality rate among children below the age of five years and this goal has equally not been achieved because the most vulnerable people in the Haitian population are the children below the age of five years. The country can be said to be far away from achieving the millennium goals because of their poor health organization and failure to eradicate water-borne disease like cholera. For the country to attain these goals then a lot of changes should be done on the health sector. The government should be able to contain the health situa tion and it should be able to give provisions to basic medical requirements and also cleaning drinking water for the citizens. Without these changes then the country will still be far away from achieving the highlighted goals. Three levels of prevention Levels of prevention can be broadly classified into three categories: primary, secondary, and

Causes of World War Essay Example for Free

Causes of World War Essay World War 1 was the first war in history that had most of the world dragged into conflict against one another. There were many causes of WW1 the main one that actually started it was a short term cause, the assassination of the Archduke Franz Ferdinand of the Austria-Hungary Empire. But there were a lot of long term causes that were building up to war like the arms race with military sections such as navy being built up especially between Britain and Germany. Also Imperialism was a great cause because Germany had only just unified in comparison to the rest of the world they wanted to get themselves on the map in regards to some colies but there wasnt much free space rest in the world, also there was the alliance systems that actually pulled everyone into the war. Nationalism also played a role, basically its patriotism so it cone sides with the alliance system especially to do with Britain and all its colonies such as Australia and Canada, they join the war because of the alliance but also because Britain is basically there mother so even though they were independent they still were going to help out their oldest and greatest ally at that time. The only short term cause was the assassination of Archduke Franz Ferdinand on June 28 1914, this act committed by Gavrilo Princip in Sarajevo; Bosnia was the match that started the fuse that led to war. The reason for this assassination was mainly because he and his group wanted to break free of the Austria-Hungary Empire and have an independent Yugoslavia. This caused the spark of the war because Austria-Hungary found out that Serbia helped to provide some equipment and weapons. So they decided to teach Serbia a lesson by going to war with them and were planning on crushing them but they couldnt because Serbia was allied with Russia but they did anyway pulling there ally, Germany, in and causing the whole conflict to kick off. The death of one royal family member and the actions of one man to commit that murder ended up getting approximately 16 million people killed in the process. The arms race then ensued when Germany started to build its navy in compaction with Britain use 4,532,000 tonnes of iron and other materials and had 63 separate Dreadnoughts built. Those figures were just for the dreadnoughts that does not include other ships like destroyers and torpedo boats. That shows the pure magnitude of the want that Germany had to out-class and over power the amazing and massive British Navy that had been dominate in the oceans of the world for hundreds of years. There is a reason for the saying Rule Britannia, Britannia rules the waves. The whole arms race was because Germany wanted to become the world power over Britain and to do that they needed a navy but they couldnt really build massive ships in secret so the British found out and started to up there navy power as well, to stay ahead. One of the main ways they did that was by introducing the HMS Dreadnought; it was a new design that was faster and stronger than any other ship that had been built to date. It was launched on the 10th of February 1906 starting a new class of ships, the Dreadnought class. The whole naval arms race was a product of Germanys imperialism and want to become a major world power but because they had only unified in 1871 they didnt have much of a chance to get many colonies but they got a few and needed a navy to defend them but they had other plans on what to do next. There was also an arms race on land/ sky but it was no were near as large or cost as much because ships are a lot bigger and more expensive. But ever since wright brothers flew their first plane the military was interested in using them as weapons and they did, Biplanes made their combat debut during WW1 and it was the first time battles had taken to the skies and there was more than just ground forces to consider when planning out tactics. Also it was during but there was also the invention of the Tank or as it were first called Land ships. Imperialism was a major stir between the European powers as they were all trying to get more colonies and more land, but during this time Germany still wasnt Germany it was Prussia and because they unified late they didnt have a chance to colonies the world but they did do it in time to participate in the scramble for Africa and its resources. The reason for it being a part of the build up to WW1 was that Germany was envious of the rest of the European powers and how many colonies they possessed, especially Britain. This might not seem that important but to be a world power you needed influence around the world or a lot of land (like Russia) but Germany had neither but the wanted to be conceded a world power but they couldnt really because there was not much land left that the Germans could Colonise. Germany was also involved in the Morocco crisis because they wanted equal economic benefits from Morocco including Moroccos natural resources. This whole situation was a big problem between the European power and who would control Morocco. Nationalism is just patriotism on an extreme level, during the early 1900s all powers in Europe had their populations tricked because they all thought their ideologies were the best and their army could crush any opponent. Basically the major powers thought they were the biggest and the best. This was especially important between Russia and Germany the main reason Germany agree to support Austria-Hungary is because the tension between Russia and Germany was building. But because of nationalism was so strong in Germany they thought, well war is inevitable so we may as well crush them now. But Russian people had the same idea. On the outbreak of war Germanys mobilised with the strength of 3.8 million in there general army compared to Russias 5.25 million. You can see that Russias military was a lot bigger but Germany had it going through their minds that they could win anyway, even though on the outbreak they sent most of their troops towards France to destroy them quickly, that was the plan anyway. The whole reason most empires/ countries got involved was because they thought their armies were so amazing that their contribution would end the war in under a year, which was not true because of the stalemate that old tactics with new equipment caused, because as soon as machine guns were introduced trench warfare was outdated. The alliances were the main long term cause of WW1 they are what brought everyone into the war making it a world war, because it involved most of the world. The first treaty that was called upon was Serbia calling on Russia because of the treat from Austria-Hungary and Serbia could definitely not stand up on its own to such a large empire such as Austria-Hungary. There  was no signed treaty but Russia wanted to keep the peace in the Bucklands area and to do that they need to mobilise their military. And the mobilising of Russias military marked the start of many chain reactions of treaties/ alliances that would be called upon that cause one assassination to turn into the First World War. The Duel Alliance was the defence agreement between Austria-Hungary and Germany it was brought in, in case Russia attacked which was most likely at the point when the treaty was signed in 1879. Also ironically it was signed to limit war but it did the exacted opposite. But even though it was called upon for an offensive movement it was still defensive from Russia because Austria-Hungary invaded Serbia cause the Russians to move there army towards Austria-Hungary so they called for support from Germany and they got it. These were the first two alliances call upon and they started the First World War. The Franco-Russian Alliance was between Russia and France it was mainly to contain the threat of Germany because if Germany decaled war on either of them they would have to fight on two fronts because France and Russia were right next to Germany but on opposite geographical sides. It was signed in 1836 and its purpose was to dissuade Germany it worked for a while but ultimately it failed and Germany declared war on both of them. The Treaty of London was signed 1839 and its point was to recognise and guarantee Belgiums independence and Neutrality. Because it was so old Germany called it The Scrape of Paper and when Germany planned to disregard Belgiums neutrality by going through Belgiums boarders to invade France they expected no one to care or act upon it. Not only was this seen as war mongering but Britain stayed true to their word to Belgium and got involved in the war because of that. And with the entry of Britain brought all her allies from her colonies; Australia, Canada, India, New Zealand, South Africa. With that most of the world was involved and it truly had become a World War. Then finally there was America. America was not obliged to join the war at any point by a military alliance but as soon as Germany announced unrestricted submarine warfare in 1917 trying to restrict shipping to Britain and force them to surrender by starving them American shipping was in danger because America shipped food and other goods to help them in the war effort indirectly. But with their shipping naval personnel in danger they didnt have much of a choice to declare war on Germany thus America entered the war. In conclusion there were many reasons for WW1 to start but most of them had been building up for years behind the scenes it just took the match of the assassination of Archduke Franz Ferdinand to light the fuse and the world exploded into chaos and destruction with roughly 16 million people dead, 20 million wounded, and 8 million missing it was one of the biggest wars in the worlds history. BIBLIOGRAPHY https://www.youtube.com/watch?v=X5YREY33W24 Published on 4 Aug 2014 https://www.youtube.com/watch?v=njINCi9iIrA Published on 25 Jun 2010 http://www.schoolhistory.co.uk/gcselinks/wars/firstwwlinks/worksheets/causeswwi.pdf Published on (No date found) http://en.wikipedia.org/wiki/Causes_of_World_War_I Published on 29 Aug 2014 http://en.wikipedia.org/wiki/Archduke_Franz_Ferdinand_of_Austria Published on 29 Aug 2014 http://en.wikipedia.org/wiki/Assassination_of_Archduke_Franz_Ferdinand_of_Austria Published on 27 Aug 2014 http://en.wikipedia.org/wiki/Gavrilo_Princip Published on 5 Aug 2014 http://www.history.com/this-day-in-history/archduke-franz-ferdinand-assassinated Published on (No date found) http://en.wikipedia.org/wiki/Anglo-German_naval_arms_race Published on 19 Jul 2014 http://alphahistory.com/worldwar1/imperialism/ Published on (No date found) http://www.historylearningsite.co.uk/moroccan_crisis_1905.htm Published during May 2012 http://alphahistory.com/worldwar1/nationalism/ Published on (No date found) http://www.matrixgames.com/forums/tm.asp?m=3415778 Published on 24 Sep 2013 http://en.wikipedia.org/wiki/Russia%E2%80%93Serbia_relations Published on 11 Jun 2014 http://en.wikipedia.org/wiki/Dual_Alliance_(1879) Published on 2 Aug 2014 http://en.wikipedia.org/wiki/Franco-Russian_Alliance Published on 23 Aug 2014 http://en.wikipedia.org/wiki/Treaty_of_London_(1839) Published on 23 Aug 2014 http://www.historylearningsite.co.uk/america_and_world_war_one.htm Published during 2006 The First World War, Robin Lobban, Oxford University Press Text book from school, page 91 (white)

Implementing And Leading Change Management Essay

Implementing And Leading Change Management Essay Organizational Change is an important issue and within organization. Changes can due to many ways such change in management system, change in accounting system, change in market demand and change in competitors in the market. Organizational is an action or set of an action for the reason of changing the direction or process of the Companys work. In addition, change is a fact of companys life. Due to survive of the organization it has to change the way it works. Change in organization may affect the business strategy of the organization, and the process companies carry out to accomplish that strategy and the workforce engage. Generally, some change are small does not affect organizations main strategy but some change is the reason of organization transformation. However, well panned and implemented change ensures organizational survival in modern days competitive market. Change can produce many benefits for the organization such improved and better competitiveness, better financial performance, satisfied employees and higher level of customer. Benefit may take long time to achieve and period of transition is time of disturbance uncertainty. Thought, change is not always positive but it can be handle such a way that strength than weaken the commitment of the people to an organization. Therefore, change process of the organization must be managed in order to keep the company moving towards its new vision and its stated objective. Also, organizational change actually is about people changing. So the change must be began with concern fo its impact on the workforce of the organization. However, change is the part of organizational development process; it is an ongoing and bring strength to the company for future success. I addition, organization generally bring change for response to external environment such social, legal, economic, political and technological factors. 3.2. Change Management: Change management is structural approach to transitioning person, teams and organization from a existing state to needed future level to achieve or execute a vision or strategy. Change is an organizational procedure aimed to employees to acknowledge and clinch change in their current environment. However, Change management can be define in three ways firstly, Change management as a systematic process; is the formal process for the organizational change, consist a systematic approach and knowledge. Second, Change management as means transitioning people; it is a critical part of a project that leads, manage and enable people to accept new process, system, technologies and value and it is a set of activities what transit people from their current way of working to the desired way of working. Finally, Change Management as Competitive Tactic; it is a continuous process of aligning an organization with its marketplace and doing so more responsively and effectively than competitors (Lisa et. al., 1997). 3.3. Common Obstacles to Chang and Reason of Change Fail: A 2006 Harvard Business review found out that 66% of change scheme does not achieve their desired company outcomes. They have identified five most common reason or obstacles to change such as Employees resistance, communication breakdown, insufficient time devoted to training, staff turnover during transition process and cost exceeded the budget. From five only three (red circle in Figure 2) can be improve by the change leader; Employees resistance, communication breakdown and staff turnover during transition. Table 1 presented the overview of the leadership role in terms of obstacles. Figure2: Obstacles Experience during Major Organizational Change Change Obstacles Leaders Role Employee Resistance †¢ Leverage relationship with team to address employee concerns on a personal level. †¢ Ask for employees feedback and react to their concerns honestly and openly. †¢ Review the section on Managing Change in this guide. Communication breakdown †¢ Communicate main information to employees on an on-going and regular basis. †¢ Review the section on Communication in this guide. Staff turnover †¢ Connect team by involving them in the initiative. †¢ Coach, Mentor and enrich their roles. Table 1: Overview of Leader Role in Change Obstacles Kotter (1995) states following Eight Errors common to organizational Change Efforts and the consequences three consequences; Error 1: Allowing too much contentment or complacency Error 2: Failing to gain leadership support Error 3: Underestimate the supremacy of vision Error 4: Under communicating with the vision Error 5: Allowing obstacles to block the vision Error 6: Failing to build short term win Error 7: Declining victory too soon Error 8: Neglectiong to anchor change firmly in the culture Consequences 1: New business strategy not implement well Consequences 2: Reengineering takes too long time Consequences 3: Quality program do not bring hope for result 3.4. Change Management Model: There are many models available to help lead change. The main common and used model of change management is Kotters Eight Steps of change management. This model of change management given below (Kottes, 2006): Step 1: Establishing a Sense of Urgency First step of the change management is help other to understand the need for change and act immediately, Do SOWT analysis to identify competitive realities and then identify and discuses possible dangers. (Kottes, 2006). Step 2: Creating the Guiding Coalition Second step of Ktters model is to make sure there is powerful group leading the change, individual with leadership skill, credibility, bias for action, authority and analytical skill, then build a team and forming influential guiding union and getting the team to work together for a common goal (Kottes, 2006). Step 3: Developing a Vision and Strategy The third step is to explain how the future will be unlike from the past, and how you will build the future realism, creating a vision to help direct the change effort, getting the vision and strategy right and developing strategies to accomplish the vision (Kottes, 2006). . Step 4: Communicating the Change and Vision To make sure that the as many as employees understand and accept the vision and strategy arise from change, a sound communication is needed between leadership and workforce to communicate vision and strategy (Kottes, 2006). . Step 5: Empowering Broad-based action: The fifth stage is to remove as manay as barriers possible than it is easy to make a vision into reality. This step help to allow to act getting rid of obstacles and encourage risk taking and modify structure or system that undermine thee change vision. (Kottes, 2006). Step 6: Generation Sort-term wins Sit step is to create visible unambiguous success and plan for generate short term achievements and achieved them then recognise and reward those employees (Kottes, 2006). Step 7: Consolidating gain and Produce more Change Seventh stage is to press faster and harder after the short term achievements, adjust improvements and sustain the momentum for change. Also, Use increasing integrity to change all systems, structures and policies that dont go well together and dont fit the transformation attempt, Hiring, promoting and developing individual who can realize the change vision, reinvigorating the procedure with new change agents, thems and project (Kottes, 2006). Step 8: Anchoring new Approaches in the Culture The final step of change management mode, is anchoring new approaches in the culture by grasp on to the new customs of behaving, and make sure they be successful until they become a part of the culture of the group, building better performance through productivity and consumer oriented behaviour, additional and better leadership, and better effective management , communicative the connections between new behaviours and organisational success and developing means to make sure leadership improvement and (Kottes, 2006). 3.5. Managing the Emotion in Change: There are many models to guide thinking on how people cope with the emotion cycle of change. Bridges (2003), has provide a model showing how people react in the time of change. He has divided Transition time in three phases (Figure 4); letting go/losing/ending of the present position, a disorienting or neutral zone and a new beginning. Figure 4: Bridges Three Phases of Transition (Bridges, 2003) This model transition mode reviews the emotional impact over time and the leaders role in change management. He distinguished difference between change and transition. Transition deals with oly psychological impact of the individual but one the other hand change is situational and may happen without the people (Bridges, 2003). Phase 1: Ending/Losing/Letting Go In the first phase (ending/losing/letting go), workforce of the company must come to a point where they can let go of the past situation because until they let go they will not able to move on towards future. Possible reaction from employees might be; fear, resentment, apathy, loss and sense of shock. In this phase leader must identify what individual will losing and accept individuals reaction and find a way to compensate (Bridges, 2003). Phase 2: The Neutral Zone Second phase is the Neutral zone, where employees are in gap between past and new. In this position old system does not work and new yet to launch. Possible reaction from individual might be anxiety; motivation level comes to low; confusion; but have some hope for future (Bridges, 2003). Phase 3: The New Beginning Final phase is the New Beginning phase; here employees start to show emotional commitment for the new state. Possible reaction might be; new identity, new energy and sense of purpose. In this phase leader must explain the new beginning, continuous communication the vision, develop a new training plan and give opportunity to the employees to play a part in transition process (Bridges, 2003). 3.6. Leadership Role in Change Management Process: Successful organizational change depends on leaders of the change project who have direct authority with employees going through the change. The following are some of the major roles leaders may play as they drive change in the company; Leader must be the role model of the team working for the change transition. Leader must be willing to go first and lead the fellow workers in the process. Leader must be self aware and deliberate. Leader is a decision maker. Leader control resources such as, workforce, budget, equipment available for transition period of change and have full authority to make decision how to handle them. During change, leaders must control their decision-making authority and choose the preference that will support the project. The Decision-Maker is influential and gives priorities that support change. Leader is a motivator to the employees. Leader gives motivation for the change to happen. Leaders create an image importance about change and show commitment and passion to get things done. Leader is an enforcer in change management. Leader hold individual accountable for the change with authority. Perfect leader understand that change will not happen if they do not fulfil the roles the authority can do.