Why Most Changes Fail Assignment Example | Topics and Well Written Essays - 750 words

Why Most Changes Fail - Assignment Example Failure rate remains high because a huge gap prevails between knowing the subject and transferring that knowledge into action. Rick highlights four mistakes that are responsible for these failures. Firstly, knowledge itself cannot lead to support or commitment from the participants. The focus needs to be on how to bring people's commitment on the change process. Secondly, employee engagement is not granted due importance in the right context. The point is that changes are thrust upon people without giving any space to them to influence the very basic idea of change or participate in the plan process. The Gallup's findings are worth contemplating in this context when they say that there is a great disparity with regard to employee engagement between an average and any world-class organization. Its cost has been estimated over $300 billion in terms of lost productivity in the US itself. Thirdly, Fear of change itself prevents employees to participate in change process with dedication b ecause they view the change process as a threat to their existence in the organization. Moreover, fearful employees cannot focus whole heartedly in the change process. Finally, trust is a crucial element while implementing any change process in the organization. That is to say that the leader needs to develop trust in employees while embarking on any change process, if the organization wants to ensure that the change process goes through successfully. ... Apple's retail store management is a classic case of creating employee engagement. The retail stores are founded on the basic tenet – engaged employees create engaged customers (Customer Experience Matters). For creating employee engagement, the Apple has employed 20-year young adults who love Apple products by heart. These young employees are paid above minimum wage with all other fringe benefits including 401K contributions. Even they are offered employee stock options to buy company stocks. Employee engagements in Apple products help create customers engagement in Apple products resulting into a burgeoning sale of all Apple products. It is a fact that Apple stores bring in more money per square foot than any other retailer in the US. While developing employee engagement, organizations cannot rest on old laurels but needs continuous focus based on the current feedbacks. Employee engagement is crucial for overall success of change management process; however, the most crucial part is how to achieve employee engagement that only a few world-class organizations can achieve consistently? It is true that change management process evokes an unknown fear among employees; however, it is equally true that people resist change and this resistance is also due to inertia as a natural tendency. Every change needs conscious action and natural inertia opposes that. Mechanical living means the process that is devoid of conscious efforts. In organizations, usually, a major part of routine daily activities are mechanical in nature that does not require a conscious effort on part of the employees. Changes process forces them to be alive, alert and agile all the time. This is a conflicting situation between natural inertia and need to

TESLA Model X , SWOT Essay Example | Topics and Well Written Essays - 750 words

TESLA Model X , SWOT - Essay Example This in itself is a source of competitive advantage for the company. The company is unique in that there is not yet any other player in the industry that has manufactured a vehicle that matches Tesla’s innovative vehicle. As noted by Porter (1985), differentiation strategy gives the company a competitive edge over other players in that its products cannot be matched by other rival competitors. This will help the company to appeal to the interests of many customers by virtue of possessing unique features which make the vehicle exceptional. The other advantage of the company is that Model X car is efficient as a result of the fact that it is an electrified vehicle. This means that the customers will experience fewer expenses in the future since the vehicle does not use any form of fossil fuel. This comes against the background of rising fuel prices across the globe. However, the major weaknesses of this model car are that it is electric and it is expensive. The price is high as a result of the fact that it is expensive to manufacture. Honestly, there may be very few customers who may be ready to fork out more than $60Â  000 buying a vehicle. The price is too much such that ordinary people may not be in a position to afford it. it can also be seen that the automobile industry is also characterised by other players some of which are reputable such as Toyota and Daimler. These cars also have their own hybrid cars that do not use fossil fuel and they may pose a threat to Tesla Motors. According to Robson (1997), competition in the environment is one major threat that can impact on the viability of the organization. This is the case in terms of Tesla since the other competitors can also offer their hybrid cars that can also attract many customers since they are environmental friendly. Therefore, it is imperative for Tesla motors to capitalise on it s strengths and opportunities in order to gain a competitive advantage while at the same

Marketing mix Essay Example | Topics and Well Written Essays - 2750 words

Marketing mix - Essay Example Constantinides described from many research scholars the weaknesses and the possible propositions to modify this marketing mix. Several marketing mix have been proposed to be used by practitioners in a bid to improve the total influence that they impact on the total sales (Constantinides, 2006). Among the marketing mixes that have been proposed, is the traditional 4Ps which still stand out as a framework that is used by many marketing practitioners. The research showed that indeed many scholars have been raising their concerns about the unsuitability of 4ps framework being used in the marketing strategies by companies or corporations or business entities wishing to capture the 21st century customers’ attention. His conclusions agreed with his initial assessment and prediction of the same. It is however, noticeable that much of the propositions he relies on have not been tested but are just personal recommendations of the other previous scholars. Nevertheless, the case study gave an insight into the very much argued topic about the appropriate marketing mix that should be used in today’s ever dynamic business world. This whole work again makes it a critical issue to even want know whether the 4ps of marketing is currently applicable to the customers as a way of marketing strategy. The author Efthymios Constantinides is a well experienced person as a lecturer and an expert in the corporate world with a doctorate degree in Virtual marketing. He therefore, is well versed with the required knowledge to write on a topic like this. The doctor according to the way he writes, probably targeted the marketing practitioners as his audience in this publication as well as fellow researchers evidenced at the end of his conclusion remarks where he recommends that further research should be done on the same field. It is also true that these were not the only target audience to Mr. Constantinides going by the

Dior J`adore Perfume Essay Example | Topics and Well Written Essays - 2000 words

Dior J`adore Perfume - Essay Example As J’adore is a luxury item, it adds to the personality of women customers. The main features and attributes of the product highlighted by the company are: femininity, sophistication, and emotion. The other features are its everlasting fragrance, better quality, innovation, and its brand name. The company offers free shipment for a particular range of J’adore products. Tester facility is provided to the customers, to test the perfume as a demo. They also offer attractive sale offers on particular occasions like Christmas. During Christmas season Dior offers combination like lotion with perfume. Women, who have high income, are the main consumers of J’adore. The products come in models like J'Adore L'Absolu, J'Adore Anniversaire En Or, J'Adore L'or, J'Adore L'eau. Customers are ready to spend more time in search of the product, because once they use it they always go for the same product, and they identify themselves with the picture of feminity in the perfume. They never go for a different or substitute product, because of its unique fragrance and quality. The product has been in the market for the last ten years. Flimsy bottle caps sometimes with decorated gold ribbon, brilliant, transparent and unique crystal bottle design, and attractive letter design of the word J’adore are the distinctive features of the product packing. They also use luxurious, clean, contemporary image of celebrities on the package. Dior follows the pricing strategy of competitive pricing, ie; they set the price according to the prices set by their competitors. They also adopt premium pricing strategy for particular product range, to highlight the product’s exclusiveness. The product faces competition from Chanel, Guerlain, Cartier, Lancome, Prada, Givenchy, Calvin Klein and Angel de Thierry Mugler. The perfume industry faces tight competition. Chanel is one of the well established companies in France, which always offers high quality perfumes, at high prices. But the prices of J’adore and its competitors are almost similar. So there will not be much difference for the customers in making payment for the product. J’adore has a USP (Unique Selling Proposition), driven by emotions, which make it impossible to compare with the products of its competitors. The long lasting fragrances, the prestige that the brand name of J’adore gives when women apply it, the confidence she feels when it a dds to her personality makes the product a unique one, which is very difficult for the competitors to imitate. The targeted customers are women who earn high income. Once they like the product, they

The Relationship of Marijuana Accessibility & Substance Abuse Essay Example for Free

The Relationship of Marijuana Accessibility Substance Abuse Essay Abstract A growing concern in the medical and mental health field is the relationship between marijuana use and further illicit drug abuse. Due to the recent state laws passing in Washington and Colorado, there has been a need for a study to address the accessibility factor in relations to the â€Å"gateway hypothesis† to marijuana. The fear is that the increase in accessibility of marijuana will result in an increase of substance abuse and dependency. Therefore, this study is intended to address the following research question: Is the increased accessibility of marijuana correlated with the increase use of marijuana and other illicit drug use. Additionally, this proposal will address the gap in the literature, sample and instrument used, and the findings. The Relationship of Marijuana Accessibility Substance Abuse A growing concern in the medical and mental health field is the association of marijuana use and further illicit drug abuse as well as whether the increase accessibility of marijuana will result in the increase of substance abuse (Yacoubian, 2007). In the United Sates, researchers and professionals have observed the controversial gateway hypothesis of marijuana for the past 30 years (Hall Lynskey, 2005). Hall and Lynskey provide the following operational definition for the gateway hypothesis: â€Å"Drugs whose use in some unspecified way is a cause of the use of later drugs in the sequence† (p.1). During this time, a variety of studies have been conducted and have discovered empirical support to suggest that marijuana is commonly associated with the use of other illicit drugs (Lessem, 2006). A previous study found that 90% of cocaine users had used marijuana prior to cocaine (Fergusson, Boden, Horwood, 2006). In another study, researchers discovered that 33% of occasional and 84% of daily marijuana users reported using other illicit drugs (Fergusson, Boden, Horwood, 2006, p. 2). Currently, marijuana is a hot topic in the media due to the United States having the worlds largest single market for illicit drugs (Yacoubian, 2007).  In addition, research shows that marijuana has been discovered as the most prevalent illicit drug within the American households (Yacoubian). Out of the estimated 19 million people using illicit drugs in American households, the majority of patients admitted to treatment facilities are adolescents and young adults for marijuana abuse (Lessem, 2006). This research significantly affects the mental health field due to the high demand of professionals trained and qualified to work with and treat patients with substance abuse and dependency issues. In terms of policy, during the 2012 election the state of Washington and Colorado passed laws that legalized the recreational use of marijuana (Healy, 2012). To date an estimate of 12 states have decriminalized marijuana and 18 states as well as Washington, DC permit medical marijuana use (Healy). However, under the Federal law there is no such thing as â€Å"medical† marijuana (McCarthy, 2004). This is due to the Drug Enforcement Administration’s criteria and the Controlled Substance Act which classifies marijuana as a Schedule 1 drug based on the following three factors: (1) its high potential for abuse, (2) having no significant means for medical use, (3) lack of accepted safety for use of the drug (McCarthy). Additionally, the Department of Justice clearly states that marijuana is illegal under Federal Law despite state policies and acts (McCarthy). Yacoubian (2007) addresses the debate between criminalization versus decriminalization by comparing and contrasting drug regulation and policies within the United States and the Netherlands. Research found that de facto legalization, permitting coffee shops, in the Netherlands led to a significant increase of marijuana use among Dutch youth (Yacoubian). Yacoubian concluded that research suggests that an increase accessibility of marijuana will result in the increase of drug use. For the purpose of this study, the operational definition of accessibility will align with Yacoubians, which is based on state policies and regulation. For example, legalization policies suggest a high accessibility of marijuana (Yacoubian). Specifically, in regards to the present study the following three states define the level accessibility: Colorado’s legalization policies and recreational use (high accessibility), California’s decimalization policies and medical use (limited accessibility), and Virginia’s illegal policies and no permitted use (no accessibility) (Healy, 2012). Due to the conflict of recent state laws passing and Federal Laws not changing there has been a  necessity for further research regarding the illicit drug marijuana and its effects (Healy, 2012). Researchers have found a significant relationship between regular and early marijuana use and further drug use such as cocaine, heroin, pills, etc. (Hall Lynskey, 2005). However, previous studies concluded that there is a gap within the research because there may have been an overestimation of results suggesting the â€Å"gateway hypothesis† known as the frequency of marijuana use and later involvement in other illicit drug use (Fergusson, Boden Horwood, 2006). Lessem (2006) mentioned some of the limitations to research were the inability to measure drug dependency as well as the issues of causality. In addition, most current research studies are out dated and prior to the recent laws. This research study was designed to fill the specific gap portrayed within the current research. According to Fergusson, Boden, and Horwood (2006) their study resulted in overestimation of date; therefore, this specific study was formatted to ensure the data is precisely and accurately analyzed to prevent complications of overestimations. Additionally, this study uses a valid and reliable assessment to measure drug abuse and dependency, which satisfies the limitations previously mentioned in Lessem’s (2006) research study. It is a concern that as marijuana becomes more accessible, there will be an increase in substance abuse and dependency across the nation (Hall Lynckey, 2005). This study is intended to address the following research question: Is the increase accessibility of marijuana correlated with the increase of marijuana use and substance abuse and dependency. Therefore, the research hypothesis for this study is that with the increase of accessibility there will an increase in substance abuse and dependency. The overall purpose of this research study is to cover several presenting factors. First, it is to increase awareness of the epidemic of marijuana use and further drug abuse within our nation. Second, it is to educate the public on the significance of the relationship between marijuana and drug abuse. Lastly, this research proposal is designed to gather and analyze data from states in which recent laws were passed permitting increase in accessibility and use of marijuana. Method Participants The sample for this study consisted of 450 subjects from the states of  California, Colorado, and Virginia. A sample size of 150 was used from each of these states, 75 participants were students from state universities and another 75 participants were patients at rehabilitation and drug treatment centers. The mean average age of participants within in the sample was 22.23. Among the total sample size, 64% (n=288) were male subjects and 36% (n=162) were female subjects. In terms of ethnicity, 42% (n=189) of participants identified as white, 22% (n=99) as African American, 20% (n=90) as Hispanic, 16% (n=72) as Asian, and 4% (n=18) as other. The sample was first divided into the following three pre-existing groups according to state accessibility of marijuana: California participants (decriminalized marijuana/limited accessibility), Colorado participants (legalized marijuana/high accessibility), and Virginia participants (illegal marijuana/no permitted accessibility). Participants were then separated into one of the three subgroups based on their drug use and abuse. The participant’s score on the Drug Abuse Screening Test assessment determined their placement in one of the following three subgroups: non-existing/mild, moderate, and severe. Instrument The Drug Abuse Screening Test (DAST) was the instrument used to assess the sample in this specific study. The DAST is a 20-item psychometric instrument that is purposed to measure an individual’s drug use and abuse (Corcoran, Fischer, 2007). The manual indicates that a higher total score suggests an index of problem severity (Corcoran, Fischer). The DAST is scored by the total sum of all 20 items with range of scores being from 0 to 28 (Corcoran, Fischer). For the purpose of this study, participants scores are estimated by mild (scores: 0-6), moderate (scores: 7-13), severe (scores: 14-20). Refer to Appendix A for a sample of the full instrument presenting all 20 items. The DAST indicates that psychometric instrument has both excellent reliability and validity (Corcoran, Fischer, 2007). The estimated internal consistency reliability was calculated with an alpha of .92; however, the manual does not provide any data of test-retest reliability (Corcoran, Fischer). The DAST manual shows both a good discriminant and concurrent validity for the instrument. In terms of discriminant validity, the instrument’s total score accurately and significantly distinguished between the groups with mainly alcohol-related problems from the groups with drug  problems (Corcoran, Fischer). The DAST concurrent validity was examined by its significant correlation of the DAST’s background variables, frequency of drug use within a 12-month time frame, and indices psychopathology (Corcoran, Fischer). Procedure The participants of this study were recruited by two different approaches based on their institutional setting. At state universities, the psychology departments recruited participants through a research database that required all students in a PSYC 101 course to participate in at least 3 studies in which this study was an option. Additionally, faculty and staff at state university counseling centers recruited students whom were receiving counseling services. At the substance abuse rehabilitation and treatment centers, staff recruited current and new patients to participate in the study at their consent. After participants were recruited through their institutional setting and consent, they received two separate emails from the researcher of the present study. The first email was a confirmation email for the individual’s participation. The second email contained a testing packet for the research studying which included the following three components: study consent form, personal questionnaire (age, race, gender, and institutional setting), and the Drug Abuse Screening Test (DAST). Participants were asked to complete the entire testing packet and return by email to the research of the study within a week time frame. Once the researcher received the completed testing packets from participants via email, the packets were examined and separated by pre-existing groups based on state accessibility. For example, all participants from the state of Virginia were separated into the no accessibility group. Participants were then additionally divided in to one of the 3 subgroups based on their score on the DAST. The three subgroups were determined based of the following range of scores on the DAST and the individual’s degree of drug use and abuse: mild (scores: 0-7), moderate (scores: 7-14), and serve (scores: 14-20). For the purpose of this study the data was converted to nominal with mild=1, moderate=2, and severe= 3. Once the data was collected  and converted, it was inputted into the IBM SPSS ® 20.0 software to analyze the statistical relationship between marijuana accessibility and drug use/dependency. Results The statistical analysis conducted was a coefficient of contingency in order to analyze the correlation and statistical significance of marijuana accessibility and drug use/dependency. The coefficient of contingency was conducted two separate times examining the statistical significance between no marijuana accessibility (Virginia) to limited marijuana accessibility (California) and then again no accessibility (Virginia) to high accessibility (Colorado). Additionally, analyzing the relationship between each accessibility level and drug use/dependency. Before running the statistical analysis, a frequency table was made to organize the data. The table portrayed how many participants scored in one of the three subgroups (mild, moderate, severe) under each state. Therefore, it was discovered that in the state of Virginia 47 participants fell in the mild, 61 in moderate, and 32 in the severe subgroups. The state of California had 37 participants were in the mild, 66 in the moderate, and 47 in the severe subgroups. Lastly, in the state of Colorado 29 participants were in the mild, 62 in the moderate, and 56 in the severe subgroups. The coefficient of contingency was calculated after the frequency table was formed. The first statistical analysis of Virginia and Colorado computed a contingency coefficient of .716 and statistical significance of .00. The second analysis of Virginia and California computed a contingency coefficient of .775 and a statistical significance of .00. Discussion In conclusion, the results of this study can be interpreted as supporting the researchers purpose and design for this specific study. The frequency table demonstrates that in the state of Virginia which has no permitted accessibility to marijuana that there were more participants who fell in the mild subgroup and fewer participants within the moderate and severe subgroup compare to the two other states. In the state of California, limited accessibility, there were more participants in the moderate subgroup and fewer participants in the mild and severe subgroups. Lastly, in the state of Colorado, high accessibility, there were more participants in the severe  subgroup and fewer participants in the mild and moderate. The two statistical analyses results conveyed additional statistical support for the hypothesis of this study. It was hypothesize that there this a relationship between marijuana accessibility and drug use and dependency, which translates that with an increase in accessibility there will be an increase in use or dependency. Therefore, the statistical analysis of Virginia and Colorado portrayed that there was a .716 correlation that was statistically significant by .00. The analysis of Virginia and California found that there was a .775 correlation that was also statistically significant by .00. Concluding that the null hypothesis was rejected and the research hypothesis was statistically significantly supported. Several suggestions can be made for future research due to the limitations of the present study. First, future studies should attempt to acquire interval data to run a more robust statistical analysis of the collected data. Second, it is suggested that future research studies use multiple assessments to measure both accessibility and drug use. Specially, the researchers recommend the Adult Substance Abuse Subtle Screening Test-3 (SASSI-3) that measures an individual’s probability to abuse or depend on substances. Lastly, a significant gap in the research conveys that there is a need for longitudinal case studies with individuals from states where policies permit recreational use of marijuana in order to accurately discovered whether these individuals are likely to use and/or abuse substances. Appendix A References Corcoran, K., Fischer, J. (2007). Measures for clinical practice: A sourcebook (4th ed., Vol. 2). Oxford University Press. ISBN: 0195314905 or 9780195314908. Fergusson, D. M., Boden, J. M., Horwood, L. (2006). Cannabis use and other illicit drug use: testing the cannabis gateway hypothesis. Addiction, 101(4), 556-569. Hall, W., Lynskey, M. (2005). Is cannabis a gateway drug? Testing hypotheses about the relationship between cannabis use and the use of other illicit drugs. Drug Alcohol Review, 24(1), 39-48. Healy, J. (2012, November 6). Voters Ease Marijuana Laws in 2 States, but Legal Questions Remain. The New York Times. Retrieved from  http://www,nytimes.com Lessem, J. K. (2006). Relationship between Adolescent Marijuana Use and Young Adult Illicit Drug Use. Behavior Genetics, 36(4), 498-506. McCarthy, K. I. (2004). Conversations about Medical Marijuana between Physicians and Their Patients. Journal Of Legal Medicine, 25(3), 333-349. Yacoubian, G. S. (2007). Assessing the Relationship between Marijuana Availability and Marijuana Use: A Legal and Sociological Comparison between the United States and the Netherlands. Journal Of Alcohol Drug Education, 51(4), 17-34.

FORD MOTORS PHILOSOPHY vs TOYOTA MOTORS PHILOSOPHY

FORD MOTORS PHILOSOPHY vs TOYOTA MOTORS PHILOSOPHY Introduction A manufacturing/production system consists of a conversion system, which transforms inputs into output. The way conversion is done depends upon the nature of product/service and the nature of demand for such product/service. Thus the types of production are broadly classified into two categories, the continuous and the intermittent. The first category is appropriate where large scale production is required and the second is suitable where demand is non-uniform and seasonal and the product is not standardized. Ford Motors, as it is poised for mass producing standardized automobiles, naturally embraced the continuous production system. This essay attempts to compare and contrast the production philosophies and systems adopted by Ford Motors during 1930s and Toyota Motor Company during recent times. As Kanigal, Robert [1997] laid the basis for the concept of assembly line, Henry Ford, adopted the concept in1914 with due consideration to Adam Smiths philosophy of division of labour. He over simplified the tasks which led to specialization and business success (William A. Levinson, 2009). On the other hand, Toyota, which emerged as a different socio-industrial system, ironically had its roots in Henry Fords philosophy (James P.Womack, Daniel T.Jones, Daniel Roos, 2007) However, TMC digressed from the traditional Detroit philosophy based on the concept of lean manufacturing and thus carved a niche for itself and grew to such an extent that the American automobile industry shook. Henry Fords Contribution Earlier, cars were a specialized luxury, available only to the elite. Fords mass production scheme made the automobile accessible for the common man even, by virtue of Fords vision, a car for every man. This philosophy got extended to the whole range of consumer products and services which came into the reach of every common man. Henry Fords team nurtured innovation in all the 4 Ps (Product, Process, Position and Paradigm) to happen concurrently. The T-Model, which Ford and his team evolved formed the basis for emergence of an altogether completely new realm of thinking as regards manufacturing, which resulted in elimination of need for skilled labour (Joe Tidd, John Bessant, 2009). Though the basic elements existed earlier, Fords success lay in synthesizing them into a new form. The philosophy encompassed not only assembly operations, but supply chain and logistical aspects also. Features of Ford System of Manufacturing Standardization of products, components, equipment, process, tasks and tasks of control. Time and work study, to identify the optimum conditions for carrying out a particular operation and job analysis, to break up the task into small, highly controllable and reproducible steps. Specialization of functions and tasks within all areas of operation .there was considerable narrowing and re-utilization of individual tasks and an extension of division of labor. Uniform output rates and systematization of the entire manufacturing process. Payments and incentive schemes based on results. Elimination of worker discretion and passing of control to specialists. Concentration of control of work into the hands of management within a bureaucratic hierarchy with extensive reliance on rules and procedures. The Toyota production philosophy The system of production which, though had its roots in that of Ford Motors, has evolved as a distinctive one with unique features such as lean manufacturing, is known as Toyota Production System [TPS]. Sakichi Toyoda, his son, Kiichiro Toyoda and Taiichi are the founders of Toyota Motors. The founders and the engineer, Taiichi Ohno are the ones who appreciated and embraced the concept of Lean Manufacturing, founded on the original concept, being, JIT production (Sorensen, 1956). The founders of Toyota based heavily on the work of Edward Deming and the literature written by Henry Ford. Lean manufacturing (Simon, 1996) concept was even seen during the times of Benjamin Franklin. The business success and opulence of Detroit drove the Toyota team to be inquisitive about witnessing the assembly line and mass production. When the Toyotan delegation visited the US, they were not impressed. The Toyotan philosophy (Shigeo, 1996) aims at rationalizing the design of the manufacturing process and so it envisages elimination of three elements, being overburden [muri], inconsistency [mura] and waste [muda]. This entails that the process is flexible enough to be free from stress as it is supposed to generate waste. The Toyota system identified seven types of wastes, popularly called the Seven Wastes. They are over-production, motion (of operator or machine), waiting (of operator or machine), conveyance, processing itself, inventory (raw material), and correction (rework and scrap) Of the three lapses, i.e. overburden, inconsistency and waste, the latter, muda, seems to dominate the thinking of man as they see the fruitful effects of TPS. Origin of the concept of TPS It is known that Toyota Motor Company has got its inspiration not from the Detroit Philosophy, but rather from their observations made on their visit to the US in 1950s. The Toyota delegation first visited the automotive plants of Ford Motor Company located in Michigan. But they convicted that many methods adopted by the industry leaders were not satisfactory or effective. Some of the lapses they identified were: large amounts of inventory on site, the way the work was performed in various departments uneven pattern, i.e., with intervention of waiting between one operation and another operation resulting in islands of idleness, re-work in huge quantities at the end of the process. Later, the Toyotan delegation visited Piggly-Wiggly, the supermarket and observed how inventory management was carried out. The supermarket maintained scanty amounts of stock sufficient to cater to the customers and its employees for a short duration, stocks were reordered and instantly replenished. This indicated an important dimension, i.e., eliminating the need to maintain huge stocks and it was all done just-in-time. Taking cue from this philosophy, many US businesses made a direct attack on high inventory levels but ended in fiasco. This was because the American businesses did not understand the underlying issues. A principle of maintaining low levels of inventory also implies that proper alignment should be made with the vendors such that they were in a position to supply materials and components just-in-time. A complete delineation with the entire supply chain is necessary. This important aspect was ignored by the American automobile industry. It cannot be achieved overnight. Toyotans admitted that it took 20 years for them to implement JIT programme. Tenets of Toyotan Philosophy CONTINUOUS IMPROVEMENT Challenge: Work without challenge makes people indolent and lackadaisical and nonchalant. Kaizen: Capabilities, skills, efficiency and the like are not constant. They keep improving over time. Hence benchmarks need to be revised constantly. Innovativeness is a natural propensity. Genchi Genbutsu: Try to find the root cause before making correction of the apparent defects. RESPECT FOR PEOPLE Respect: Others must be respected. There should be mutual understanding and a readiness to accept responsibility to build mutual trust. Team work: Working together to achieve organizational and individual objectives through commitment. LONG-TERM PERSPECTIVE Short-term goals are mere derivatives of the long-term ones and the former are dependent on the latter and hence, priority shall be given to pursue/revise long-term goals. THE RIGHT PROCESS PRODUCES THE RIGHT RESULTS Creation of a continuous process flow facilitates inherent problems to be apparent at surface. Lacunae, if any, will come to surface; unevenness in loading of work stations will be indicated. Adopting pull system of production prevents overproduction. Under pull system of production, production scheduling is not done for large scale manufacturing. Master production schedule is made based on the current orders on hand. Once these orders are processed, the production process is stalled and rescheduled upon receiving new orders. Thus, products are pulled out of the system by customers. As long as production goes, care should be taken to avoid unevenness of flow of the process. This requires every material, tool, equipment and labour to be readily available at the respective work station to avoid interruption. Defect to be nipped in the bud. This means that if the job on the assembly line or at a work center is found to be defective, the same cannot be passed to the next work station/center without being rectified of the defect. This gives two-fold advantage; first, all the output that comes out will be defect free and secondly, there is no need to invest on a quality assurance system. Line stopping Where, on an assembly line, if any defect is noticed by the operator[s], he is given discretion to stop the assembly line by means of a switch and hold it till the defect is rectified. Continuous improvement is based on standardization of operations/tasks and employee empowerment. Standardization of operations facilitates fixing benchmarks for employees and thereby provides for comparison of performance against benchmarks. Once they are met by the employees, the benchmarks will be revised. This way, performance and efficiency keep increasing year by year, leading to ever increasing performance and productivity. Visual control system: This system alarms the workers of any lapse or defect that my arise during the production process. When the system identifies a defect, it alarms the workers through visual devices. Using fool-proofed technology: The Toyotan philosophy calls for using equipment of proven technology to ensure a steady and uninterrupted flow of the process as well as to get the output of the desired quality. DEVELOPING PEOPLE AND PARTNERS ADDS VALUE TO THE ORGANIZATION Leaders should be developed from among the employees who relish the philosophy, understand it thoroughly and are willing to share it with others. Exceptional personnel and teams who imbibe and nurture the aspirations of the company should be developed. Network partners and suppliers by sharing expertise should be honored and challenging assignments should be given to help them improve. A SUSTAINED EFFORT TO RESOLVING ROOT PROBLEMS DRIVES ORGANIZATIONAL LEARNING A personal involvement in a situation provides a thorough understanding of an issue. Decision making shall be done coolly through consensus, taking into consideration all possible options. Implementation shall be done quickly. This is based on the belief that collective wisdom is always superior to the individuals. Creating an environment in the organization so, that every employee indulges in learning things and improves performance on a sustained basis. This makes the whole organization, a learning organization. How Toyota Is Comparable To And Discernible From Ford Production Philosophy Toyota Relies on piece-meal style of production, i.e., produces only when there is pull from the customer Ford Whereas Ford manufactured in large scale to create stock based on estimated demand Nature of work Toyota Designed the work so, that workers had to be multi- skilled to perform complex tasks. Ford Over simplified complex operations such that workers needed low level skills Standardization Toyota Though was influenced by the writings of Edwards Deming and Henry Ford, was embarrassed on eye-witnessing the assembly lines of Ford Motors facilities in Michigan. Ford Could demonstrate business success through the policy of standardization of products, components, equipment, process and control. Pace of output Toyota production system was continual and produced in small quantities as each customer merited. No pile up of finished goods. Ford Held the policy of turning over at uniform pace to create huge pile up of stocks. Set up time cost Toyota Fundamentally designed for continual flow meriting frequent changeovers and set ups, but this could be offset by the extra costs of blocking capital in the form of huge pile up of stocks, characteristic of Ford Motors. Ford As the scheduling is done for continuous run, changeovers are less frequent and so, low set up time and cost. Workers discretion Toyota Allowed certain amount of discretion to workers on the assembly line such as empowering them to inspect the job for defects and to stall the flow on the assembly line to rectify the defect then and there and then let it go to the next work station to ensure zero defect situation and to eliminate the need of rework division. Ford Eliminated the scope for workers discretion to be used at the work place since each worker on the assembly line had to perform only a single task and the next task had to be done by the next worker. Workers had no authority to stop the flow of work as such, an incidence of defect is allowed to pass till the end of the process and the defective item is sent to rework division. Process design Toyota Focused on three criteria while designing its production system, i.e., overburden, inconsistency, and waste. These words are simple, but have far reaching effects. The last criterion is pivotal for the success of the company. The seven wastes concept indicates a treat amount of insight of the Toyotans and it is unique of Toyota. But, ironically, Toyotan inspiration is rooted in the writings of Edward Deming, who happens to be the American. The fun lies in the fact that American automobile industry did not pay heed to Demings philosophy, but non-Americans exhibited faith in it. Ford Bureaucratized as far as administration/control is concerned. All employees have to observe scalar chain and abide by the rules and procedures Long-term perspective in planning Toyota Ford Both companies look into far future. Developing people Toyota Promotes development of exceptional individuals and teams. Ford Does not focus on developing experts as it has over simplified the tasks, rather, workers might gain efficiency as they do the single task repeatedly. Pay and incentives Toyota Provides ample scope for personnel to grow as it nurtures innovation, employee participation and so on. Ford The policy is to pay and provide incentives based on results. Problem solving Toyota Employees are nurtured in such a culture that they address a problem through the root cause instead of taking a perfunctory look. Ford Employees are not trained along making deeper efforts in addressing problems. They used to leave the problem at perfunctory levels. Summary The world has witnessed a constant transformation as regards the automobile production/operations philosophy. The Fords mass production (produce to stock) philosophy received ample appreciation and was convicted to be the right path by most other manufacturers (1914). This has been evidenced by the way the Big Three, (Ford Motors, General Motors and Chrysler) flourished during early and mid 20th century. But the onset of Toyota production system, which is based on the philosophy of lean manufacturing, started sending tremors into the well complacent American automobile industrys regime. The principle of Toyota Motor Company (TMC) to eliminate wastes and subsequent TMCs success attracted other manufacturers who tried to copy, but in vain. They could not imitate the whole TMCs philosophy as it is.

Impact of Transnational Corporations on NICs

Impact of Transnational Corporations on NICs Introduction What are TNCs? Trans National Corporations (TNCs) are companies which operate in at least 2 countries. Its organization is very hierarchical with the headquarters as well as research development often located in the mother country. Production centers tend to be host countries. When organization becomes more worldwide regional headquarters and regional research development will widen in the manufacturing countries. This gives TNCs many advantages, such as right of entry to the global market, cheap labor, low production costs, consequently greater profits. The headquarters of these remains in its mother country, usually one of the most developed countries in the world, like USA UK. Their established factories throughout the world, which either make parts or entire finished goods for the company to sell on the global market. Among all the TNCs in the world, Most of them are oil companies such as Exxon (Esso) BP, car manufacturing companies (for instance Toyota, Ford, Nissan and Volkswagen). Other familiar companies like Sony, IBM and Coca-Cola are also defined as being TNCs. Trance National Corporations are established globally for their advantages, to earn more profits. They bring with them both positive and negative impacts for the country that plays host to them. Top 10 TNCs in 2009 TNCs manufacturing high-tech Scientific instructions, pharmaceuticals microelectronics, (Mitsubishi, Sony, Glaxo- Smithkleine) Large volume consumer goods Tyres, Motor vehicles, televisions other electronic products (Toyota, Daimler, Ford, Volkswagen, General Motors) 3) Mass produced consumer goods cigarettes, beverages, breakfast cereals, cosmetics branded goods (Mars, Uniliever, Nestle, Kraft foods) 4) Service Banking/ insurance, freight transport, advertising, hotel chains and fast food outlets (IN group, AXA, citigroup, HSBC, Allianz, Dexia) TNCs organize manage economic activities in different regions develop trade inside between units of the similar corporation in different regions. It means they can often control the terms of trade and can diminish the effect of quota boundaries on the movement of products, go around trade tariffs. Advantages to TNCs TNCs have the ability to take advantage of spatial differences in factors of production. They can utilize differences in the accessibility of labor, capital, and building or land costs. e.g. 2002 Dyson moved its production from a plant in Malmesbury, Wiltshire to Malayasia to take advantage of cheap labor. Dyson did retain several hundred jobs in Wiltshire for RD saving of 30% in production costs0 They can locate to take advantage of government policies such as lower taxes, subsidies and grants and less strict legislation on employment and pollution. They can get round trade barriers by locating production within the market where they want to sell. E.g. Nissan in Sunderland, Toyota in Derby. Japanese car firms have been attracted to locations in the EU because of quota restrictions on the import of Japanese made vehicles into European manufacturers and gain entry to the European market What are NICs? Country that has within recent decades experienced a get through into rapid productivity growth, rapid export oriented economic growth, quick industrialization farther a high amount of investment and assets formation largely funded from local savings, and a high tendency to export, with end user durables and machinery accounting for a large share of exports. Superior examples are South Korea, Hong Kong, Taiwan, and Singapore. These countries invest capital and production facilities in other developing countries like China, Vietnam, India, and some countries in South East Asia. Within 20th century lots of East Asia countries were industrialized such as South Koria, Taiwan, Philippines, Singapore, Thailand, and Japan. These states are called as Newly Industrialized Countries or (NICs). They are also sometimes referred to as Tiger Economies because of the growth rate of these counties. The governments of NICs controlled over industrial development motivated industries to export manufactured products to abrade such as more developed states. The exports profits were re-invested in the local economy. Local businesses did grow; wages rose workers did spend their new assets to buy domestic goods and services thus motivating further growth. This type of rotation or knock-on effect, in which money paid out by businesses is reinvested inside the country, is often called the multiplier effect. NICs have been being succeeded for the last 30 years. That successfulness of these economies has contributed to the turn down of manufacturing industries in MEDCs like UK. Industries struggled to compete with the NICs competition, because their production cost and wages were very low. Characteristics of NICs Countries whorled market exporter share is increasing, they often copying existing products then reproducing for a much low price. Continues growth in the production sector that results for more exports continues increasing of GDP. Generally NICs Can be developed by three stagers, thats traditional society to a developed country society. Three stagers are explained below. The time frame of whole process can be minimum 30 years. Traditional society: There are more labors work under the industry, its labor oriented. Concentrating on small cottage-style traditional industries, concentrated on local raw materials. Instance could include food processing, textile manufacture Most of the time, lots of people are still work in the primary sector, doing things include farming. Using primary technologies most of the people have less money. Import the products what they want, that indicate county is not producing what they actually needed addicted to import products. Import substitution industries: The country does promote its own industries. Newly started companies imitate products from well known market giants and then produce them for low price. The government operates tariff barrios for the products are being imported trades that make similar products. The purpose of that is protecting their own domestic companies whilst they grow. Instance industries are computer manufacture, car manufacture, electronic goods and other electrical goods, like hi-fis. Export orientated industries: The new companies established in their own country they are unleashed upon the global market. Industries are being capital intensive, using high technology aimed at earning a big profit. The gross domestic product (GDP) of the country starts to increase, mostly growing at well over 5% per year which is a wonderful rate. Now the country has been being an NIC. How do TNCs affect to the NICs economy their environment? Investment: Advantages: The companies earn, invest, bring foreign currency into the country. Though most of their earnings come back to the companys country of host, all the remunerations do come to the local economy Disadvantages: The salaries paid to host country workers are very low and a lot of companies have been accused of exploiting the workforce before benefiting it. There are often tax incentives for these TNCs to locate in countries in the Developing World. Due to the fact that they get lots of their profits out of the country that says the real economic benefit to the country could be limited. Technology: Advantages: TNCs help the development of the NICs by bringing in latest technology and new knowledge that the host country doesnt use. Disadvantages: Unless the company actively participates in a program to educate local companies in the new technologies, the countrys industry will not really benefit. TNCs are not going to share too much information. If the local industry competition will increase because of new knowledge TNCs have to compete even with the local companies. Transport: Advantages: The new TNCs mostly help to develop transport links around the company area. Disadvantages: Mostly serve only the direct roads, rails that needs of the company, not the surrounding area as well. Employment: Advantages: They create jobs opportunities for the NICs domestic employees. Disadvantages: Most of the jobs opportunities are highly skilled so the company uses their own people to do the work. Because of the technological environment of these companies. Remain less jobs opportunities. Urbanization -launching a TNC in a city in NIC does encourage urbanization. Young migrant workers gather to the city. It influence to the rural communities their development Environment/Safety: Advantages: Companies bring with them the environmental friendly technologies expertise to decrees harmful pollution establish a safe working environment. Disadvantages: a lot of TNCs have very bad history on pollution and worker safety. They have been complained of trying to cut both safety of working environment and environmental pollution in order to keep costs down. . Overall impact to the Economic growth Development of NICs can be potentially promoted by transnational corporations through their activities that generate economic growth. Some evidence exists that the foreign exchange and foreign direct investment that TNCs provide can improve the performance of the economy of the NICs which they operate in. The process of economic growth is impacted by the TNCs through influencing the quality and amount of new capital formation, transfer of soft and hard technology, expansion of trade opportunities and the development of human resources. Further, Such as Province of China, Taiwan, and South Korea demonstrate, that under some conditions economic growth can foster social development. For example in Taiwan, enormous growth of economy has been combined with increased educational levels, longer life spans, improved health conditions, advanced housing conditions, political liberalization and enhanced civil liberties. Theoretically TNCs can uplift the development of the NICs society by fostering economic growth; practically this relationship exists for two reasons. Mainly, in the host countries it is not clear whether transnational corporations are really responsible for the growth of economy. In the most recent two notable cases related to economic transformation, Taiwan and South Korea, a negligible role was played by transnational corporations. Further, TNCs actually have the ability to prevent NICs local economic growth by running local entrepreneurs out of the business zone, along with the importing of main goods and services, reducing large amounts of the profits from their local NICs, and transferring royalties and fees to the main companies which are located away from the host economy. Secondly, even if the economy of the NIC is not developing, there is a tenuous relationship between social development and economic growth. Even though there is an global economic growth annually, it is yet hard to prevent the problems of poverty, unemployment, inequality in wealth, and such other issues of social malaise. For example In Cote dIvoire, from 1960 to 1975 the TNCs could have helped to foster aggregate the growth of the economy, they did only a very little to uplift the development of the society: increase in unemployment, income distribution expanded and nationals increasingly started losing the control over the industrial capacities of the country. In some, under some circumstances TNCs can act as the engines of growth of economy, the power of economy is very rarely harnessed to the achievement of development. Overall impact to the Environment Transnational corporations can have a negative impact through a demotion of resources in the environment to the social development. And over the past ten years such entities had been responsible for environmental disasters. For an example, Union Carbide in Bhopal, India, Exxons Valdez spill off Alaska, and Texaco in Ecuador. To a group of environmental problems TNCs have been linked. Fifty percent of the green house emissions are generated by them, in which they are responsible for global warming. Furthermore they are also the users of ozone-depleting chlorofluorocarbons (CFCs) and they are also producers of CFCs. Explaining further, transnational corporations are responsible for the pollution of land, air, wetlands, water and the oceans. Ultimately, through their mining activities and commercial logging, there is a contribution to deforestation by the TNC. For example in the mid-1980s, there was a control of 90per cent of the logging by the foreign corporations in Gabon and in Congo it was 77 per cent. As a result of such mining and logging negative effects such as flooding, loss of topsoil rapid run-off of rain have occurred; Farmers are economically not in a rich status to buy the land from forest owners and usually TNCs dont internalize such social costs. Hence such negative externalities cannot be p revented. The relationship between TNCs and the environment is massively complex even though transnational corporations can definitely obstruct social development through their environmental practices .But yet the Critics dont mention that consumption of environmental resources should be abstained by transnational corporations, instead they should promote sustainable growth and development via their activities. In the meantime there is a practice by the TNCs to follow demoted environmental standards in the developing countries with comparison to the developed countries; and it is found with evidence that environmental practices are more responsible in developing countries than in local firms functioning in such countries. Nevertheless, critics emphasize that, as a result of having better resources they have better access to research and development, It is the responsibility of the TNCs to promote environmentally sustainable practices and they bare that responsibility. Some companies undergoing so much of pressure have started to follow more environmentally responsible policies. Example, a maligned polluter named Dow Chemical, had to establish one-and-a-half days each session with the environmentalists brief senior management quarterly. The salary of the manager was pegged to the goals of the environment, and a toxic release of 32 per cent between 1988 and 1991. Further some laudable environmental practices were also implemented by the IBM including rewards for the employees for technical innovations which helped to comply with the environmental standards. Finally 18 environmental awards were won by ATT since 1990. On the other hand, expect these three companies majority pillage to consume environmental resources from the countries that are developing and they consume these environmental resources in a destructive and unsuitable manner. practices which certainly hamper prospects for social development. Some of the companies that involves in issues related to the environment are General Electric and DuPont, for example, Dupont was responsible for toxic chemical releases in 254 million pounds during the period of 1991 in the United States , and this has led to minimize such practices that destroys environment. e.g. In December 1984, one of the worlds worst industrial disasters occurred in a Union Carbide plant in Bhopal, India. Poisonous gas leaked from a negligently maintained chemical factory killing 3,000 and injuring over 200,000. See Reinhold (1985), Lueck (1985) and Everest (1985). An Exxon ship called the Valdez crashed off the coast of Alaska, spilling thousands of gallons of oil into the ocean and killing large amounts of marine life. The company untruthfully maintained that the oil spill had caused only minor damage and that the oil spill had been satisfactorily neutralized (de George, op. cit., p. 5). Conclusion -s-cool.co.uk. (). Geography GCSE: Industry. Newly industrialised countries: South Korea. (), . http://www.s-cool.co.uk/gcse/geography/industry/industry-in-the-developing-world.html