Decision Making in DHL

Introduction: DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education. DHL is part of  Deutsche Post  DHL.The Group generated revenue of more than 53 billion euros in 2011. I will be discussing DHL from many aspects such as decision making and its effect on the organizational performance from the perspective of Cyert & March and compare it to Bursson theory. Also I will cover Zimmermen theory about rules and apply it to DHL case study. Finally I will examine the macro environment of DHL organization. Body: DHL was the global market leader in internati onal express shipping, overland transport, and air freight, as well as ocean freight and contract logistics.As of April 2011, its network covered more than 220 countries and territories worldwide in 120,000 destinations. It had many awards to its credit (Refer to Exhibit I for the details of awards won by DHL). According to Ken Allen, CEO, Express Division, DHL, â€Å"The express sector is one of the major drivers of global trade and we are excellently positioned to capitalize on this through our services which meet our customers’ domestic and international transport requirements, anywhere around the world. † Formal organization has its own specific function or functions.A university for example has the main function of promoting education. But it also promotes artistic, literary, athletic and other interests of the members. The principal function of the church is religion but it also promotes charitable, ethical, athelitic, recreational, educational and other activiti es. Thus the formal organization may have its latent as well as manifest functions. The formal organization has its own norms or rules of social behavior. Certain conducts are appropriate in certain organization. Formal organization lays down procedure to be followed by the members.Members of an organization have different statuses. Statuses imply division of labor. The division of labor is characterized of all organizations and in a sense; organization is synonymous with the division of labor. Organized actions in a formal organization are possible because of division of labor. Bureaucracy refers to the administrative aspect of the formal organization. It refers to the arrangement of the organization designed to carry out its day to day business. It is represented by a hierarchy of officials who are assigned different responsibilities and provided with different statuses and roles.The formal organization is based on rationality. The rationality of formal organizations has two sourc es- the predominance of rules that have been devised to help achieve definite results and the systematic reliance on knowledge in the operation of the organization. The formal organizations are relatively permanent. Some organizations last for longer time while others perish within a short period of time. According to Zimmerman he illustrates the inadequacy of the rational decision making approach.He shows that members of an organization are far from adhering to the rules and procedures that should inform their decision making; they instead use & understand these rules in everyday work in creative & adaptive ways. He wants to understand how organizational members actually make sense of & understand what these rules mean in practice. Studies assumes and accept the existence of clear rational , objective rules of decision making but are contrasted with actual practice. Zimmerman objects this view; he offers how these rules become alive: how formal plans are used by members to deal wit h every day work activities.He analyses how employees’ use of formal rules is determined by their attempts to achieve their view of their priorities. Activities of bureaucratic actors in a public assistance organization will be examined. To Zimmerman, following rigid or complex procedures impedes effective action. The analysis is concerned with the judgmental work of receptionists in assigning applicants to intake case-workers. This study investigates the variety of practices, operational meaning and situational relevance of policies and procedures for everyday organizational activities.Rules, policies, formal planning Researchers argue that rules and policies are to some degree abstract and general, and should not be treated as idealizations. Rules cannot completely reflect the changing organizational situations. Informal rules and policies usually develop, where personnel modify and redefine the rules in light of operating conditions. The formal plan of the organization is used and interpreted by personnel in a way that best suits their everyday work activities. Usually, procedures and rules are designed to ensure efficient achievement of formally defined goals.However, it is not always practical to strictly follow the rules, because of the ever-changing output of the many interactions of individuals. People use and understand the rules in everyday work in creative and adaptive ways. The chapter wanted to understand how organizational members actually make sense of and understand what the rules mean in practice. Receptionists made sense of the rules in subtle ways, and made decisions about when and how to use them in light of their experience and knowledge of applicants and situations.The problem is then how the formal plan of an organization could be used by its members to deal with everyday work activities and of what are the features that members use to recognize and interpret. Instruct others, about the operational intent & behavioral implications of such a plan. The sense of routine provides employees with: * A way to recognize the exceptional character of a given event. * The good grounds for suspending or otherwise modifying the rule as normally applied Suspension or bending a rule is considered a reasonable solution to minor dilemma.The use of formally prescribed procedure, viewed from the notion of their competent use becomes. * Not a matter of compliance or deviance (behavior) * But a judgmental work providing for the reasonableness of viewing particular action as essentially satisfying the provision of the rule Rules are not hard and fast social facts but are the result of continual interpretation and negotiation which produces an – ever shifting framework to be taken. Rules may be negotiated and changed and new rules also stand over and above organizational actors informing and shaping the emotional life of an organization.Rules are resources for action, but because contexts vary, they do not determine perform ance of individuals or their organization. Industry observers felt that like any other successful company, DHL’s success could be attributed to some of the basic strategies it had adopted: knowing the customers and solving their problems, expanding the business, and creating a win-win situation for all stakeholders. According to company officials, the opening of the new European hub at Leipzig/Halle in 2008 was an example of adhering to that old formula.While deciding on the location of this hub, not only did the DHL authorities focus on optimally locating its facilities, but they also planned for the company’s long-term future. DHL was also faced with having to train large numbers of new personnel. In three years’ time, 2,000 employees were qualified for their respective tasks at the hub. DHL estimated 2,000 employees were working at the hub in September 2008. Their number is expected to rise to approximately 3,500 by 2012. Nearly 90% of the newly employed work ers come from the region around the airport.Two-thirds of them were previously unemployed. Some 7,000 more jobs will likely be created in the surrounding area, bringing the total number of direct and indirect new jobs around the Leipzig/Halle hub to approximately 10,000. In addition, DHL is training young people in the various logistics and IT professions at the airfreight hub. With all the mentioned above DHL is a company who follows and respect the rules and that to succeeds and maintain success. With all the complexity in DHL as a formal organization, decision making can't be that easy as well.The political perspective is clearly identified by Cyert, March ; Miller , where they identified theories of decision making that are concerned with politics (Coalition aspect) ; processes (Problemistic search) where an activity is only initiated by an immediate problem rather than an orderly systematic process of search and analysis. ( as for Pettigrew). Here, Pettigrew view organizations and decision making as a political arena in which:; Political behavior follows the unequal distribution of resources ; the creation of specialized loyalties and perspectives thru organizational differentiation.Organizational units with different or conflicting interest, loyalties and mindsets struggle for advantage with obvious implications for the nature and outcome of decision making. Political activity is central to organizational structures and processes: divisions of interest result from the hierarchical nature of power. Power relations ; politics originate in the structure ; processes of the organization. Structures create specialism's which develop loyalties which in turn breeds politics. The heart of conflict, politics & co-operation is Power.Cyert and March propose two major organizing devices: a set of variable concepts and a set of relational concepts. They claim that Theory performs two major functions: * it is an exhaustive set of general concepts. * it has a set of rel ational concepts The exhaustive set of general concepts, the process of decision making can be analyzing in term of variables that effect organization goals, expectations and the variables that effect organizational choice. Organization goals: A theory of organizational goals considers how goals arise in an organization, how goals change over time, and how the organization attends to these goals.There are two sets of variables affecting the goals of an organization. As the international express business had been growing steadily over the previous few years and assuming that it would continue to expand in the future as well, the Leipzig/Halle site had developed the potential to become a crucial junction for the express and logistics specialists. At the same time, DHL considered an additional starting and landing capacity in Central Europe to be necessary, as the company’s existing European hub in Brussels had reached its threshold limit.The organization visions of labor becaus e individuals have limited capacities, and limited time, to devote to any particular aspect of the organizational system, such limitations constrain the bargaining process. As an adaptive response, coalition members are motivated to develop mutual control systems, such as the budget and the allocation of tasks by the division of labor and specialization. Set variables influence the aspiration-level on any particular goal dimension. There are three variables; the organization past goal, the organizations past performance, the past performance of other ‘comparable’ organization.Organization expectations: Expectations are seen as the result of drawing inferences from available information. Expectations are by no means independent of hopes, wishes, and the internal bargaining needs of subunits in the organization. Therefore a good theory for the organizational expectations should consider variables that affect either the process of drawing inferences or the process by which information is made available to the organization. Organization choice: A theory of organizational choice needs to characterize the process by which the alternatives available to the organization are ordered and selected.Organizational decisions depend on information estimates and expectations that ordinarily differ appreciably from reality. Choice takes place in response or influence. DHL considered an additional starting and landing capacity in Central Europe to be necessary, as the company’s existing European hub in Brussels had reached its threshold limit. Theory as set relational concepts, there are four fundamental concept to understanding of the decision-making process in a modern, large-scale business organization.The quasi resolution of conflict; uncertainty avoidance; problematic search and organizational learning. After we went through decision making, I'll analyze DHL with PEST analysis to understand its macro environment. PEST analysis  stands for â€Å"Polit ical,  Economic,  Social, and  Technological analysis† and describes a framework of macro-environmental factors used in the  environmental scanning component of  strategic management. Political  factors are how and to what degree a  government  intervenes in the economy.Specifically, political factors include areas such as  tax policy,  labor law,  environmental law,  trade restrictions,  tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods  or merit bads). Furthermore, governments have great influence on the  health,  education, and infrastructure  of a nation. In Leipzig/Halle, courier and express services are of vital importance to the efficiency and growth of the Leipzig/Halle economy.With Leipzig/Halle geographical position which is away from the centre of continent al Europe, fast and effective delivery services are essential for Leipzig/Halle businesses involved in international trade. Economic  factors include  economic growth,  interest rates,  exchange rates  and the  inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's  cost of capital  and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy.Advances in technology and the increasing use of e-commerce, combined with the courier and express sector's commitment to investing in IT, and have cushioned the industry from the worst effects of the recent global slowdown. Social  factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company' s products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor).Furthermore, companies may change various management strategies to adapt to these social trends. In DHL a raft of government measures to tackle environmental pollution and congestion have increased costs for the, largely road-based, express logistics sector. Technological  factors include technological aspects such as  R&D  activity,  automation, technology incentives and the rate of  technological change. They can determine barriers to entry, minimum efficient production level and influence  outsourcing  decisions. Furthermore, technological shifts can affect costs, quality, and lead to  innovation.DHL used satellite-based navigation systems. The company planned to improve the system by including and analyzing more information concerning terms of traffic, traffic lights, and construction sites. Conclusion We co nclude that DHL can't operate without rules, it should consider and fear competition as it should take its decisions rationally without complexity. That by applying the above theories and understand them very well as an organization. I will be summering chapter 6 The Irrationality of Action and Action Rationality of: Decisions, Ideologies and Organizations.A decision is a choice between at least 2 alternatives. Decision making was explained by economists, political researchers as well as, psychologists and sociologists. Some individuals decide and others carry out the decisions. Researchers elaborated in the direction of rationality while other evidence shows that the process does not comply with rationality specially in strategic major issues. People are not clever enough to behave rationally. Therefore decision makers should be carefully selected. Irrationality is inherited in human beings which cannot be changed by training.Decision makers don’t have enough information on the many variables involved. Therefore, information systems may help to improve the process beside caring about objectives and alternative comparison. An action perspective to explain the process is more acceptable. Since leaders don’t only take decisions but also act and induce others to act on them. Since managers act while making decisions rationality of decisions take in consideration practical internal and external norms. Irrationality as a base of organizational actions 1. Searching for alternatives. 2. Estimating Consequences 3. Evaluating Alternatives . Choosing 5. Making Rational Use of Irrationality Rational decisions create irrational procedures from an action point of view. They should be avoided in order for an action to be taken. References: * Salaman, G. (2002) Decision Making for Business, London, The Open University/The Alden Press, Oxford. * Salaman, G. (2001) Business Behaviour in a Changing World: Module One Study Guide, London, The Open University. * http ://www. dhl. com. kw/en/about_us. html * http://en. wikipedia. org/wiki/PEST_analysis * http://www. sociologyguide. com/organization-and-individual/formal-organizations. php

Mass Communications

In the past 10 years, mass communications underwent perhaps one of the most profound revolutions in their history, matched perhaps by the arrival of the telegraph and the telephone. Technology changes affect who we reach and in what ways. They also affect our entertainment and the way we spend free time. The most notable change has certainly been the Internet. Its vast online spaces have made tons of information easily available to masses of people who previously would find difficult and costly to obtain information of similar quality from other sources. In this way, the Internet democratized communication between people, making writing cheaper through e-mail and making voice connections more accessible through Internet telephony and programs like Skype. I regularly use Skype and e-mail to reach my relatives in other countries, and this makes our communication much easier. The use of online communication has also provided people with immense opportunities to address large audiences without considerable expense of starting one’s own media project. To make a site that will deliver content and the author’s news to large groups of people is very easy and inexpensive. This helps overcome the problem of freedom of speech that many saw in the world where media were owned and governed by rich tycoons. The critics of such freedom noted that it did not provide for â€Å"freedom of expression† of those who are not commercial film producers or media barons† (Iyer, 2004). Today, one can air political or social views without investing a lot of money. Blogs are yet another way to make one’s views known to a group of people and make an online community, getting new friends. In 2005, Business Week reported that â€Å"there are some 9 million blogs out there, with 40,000 new ones popping up each day† (Baker, Green, 2005). I tried once to start a diary at LiveJournal.com, but soon got tired of writing there and could not find many people to read my writing. I believe myself to be a slow adopter, although when technical improvements in communication get popular, I do begin to use them. References Baker, S., & Green, H. (2005, May). Blogs Will Change Your Business. Business Week. Retrieved August 29, 2006 College of Communication, the University of Texas at Austin. Thoughts about the Future of Advertising. A White Paper by the Faculty, Department of Advertising. Retrieved August 29, 2006, from http://www.ciadvertising.org/studies/reports/future/whitepap.html Iyer, V. R. (2004, July). ‘Culture Cops' and the mass media. Retrieved August 29, 2006, from http://www.indiatogether.org/2004/jul/med-copmedia.htm   

International Business on Heineken Essay

Identify 2 strategic objectives that your firm had for entering a specific foreign country. In 2010 entered the Latin American market by acquiring the beer businesses of FEMSA in Mexico and Brazil. The FEMSA, Fomento Economico Mexicano is the largest Mexican and Latin American beverage company.1 Reasons for entering this continent is to achieve their goals, also mentioned as objectives in Heineken’s annual report. Two of these goals include Grow the Heineken brand and Capture the opportunities in emerging markets. Entering the Latin American market, would enlarge the brand awareness of Heineken. By aiming on expanding the brand name,The brand performance in 2012 was strong both in developed and emerging markets. It was particularly noticeable in Brazil, Russia, India, China and Nigeria where Heineken enjoyed double digit growth. This development was largely due to a global approach to brand management and to effective marketing. 2 Furthermore Heineken aims on capturing opportu nities in emerging market, especially focussing on Mexico. Heineken has transformed its emerging market presence in recent years through a clear acquisition strategy, strong organic growth and joint venture partnerships. The beer volume increased from †¦ in 2007 to†¦. In 2012. In mexico they continue to implement their value growth strategy following the acquisition in 2010. Focused brand investment behind new marketing campaigns and upgraded packaging have supported growth of Carta Blanca, Tecate, Dos Equis, So and India brands. In addition, increased outlet distribution and targeted activation programmes resulted in the Heineken brand volume more than doubling in 2012. 5b) Which foreign entry modes has your firm used in the last 6 to 8 years, and which mode was used for which country? Please also explain for one of the entry modes used whether you think that mode was the best one or whether another entry mode should have been used instead. Substantiate our answer with at least two arguments. Heineken operates in more than 71 countries.3 The most common used entry modes are joint ventures and acquisitions. If acquisition in a foreign company is not possible due to government restrictions, Heineken decides to operate as joint ventures. Heineken aims on dominating the market and gaining the largest market share for beer. For this goal, the company tries to enter foreign markets by using Greenfield acquisitions and  have full control over their operations without having to add new capacity to the industry. This entry mode has also a faster entry speed and is used for emerging markets, where the competition and growth of the market is high. In this case, acquisitions are operated in the emerging markets. For example, the acquisition of the brand Tiger between Heineken and APB and APIPL enabled the brand to lift with the growth of Heineken. and established local premium brands including Biere Larue in Vietnam, Bintang in  Indonesia, SP in Papua New Guinea and Tui in New Zealand.4 As for companies that do already have a dominant market share in a country and do not need to upgrade to fit the global operations, Heineken decide to go for joint ventures, where the two companies work together, and limit the financial risk of investment by working together with local firms. Also Heineken enjoys knowledge of the local market. Full acquisitions have a high degree of equity control. Also the resource growth is external. Full acquisitions are chosen if it is important to enter the market quickly, if the it is a fast growing market, emerging markets? Also acquisitions are chosen if there are already companies existing of the same product. Certain costs will be avoided by doing so. As for joint ventures, the degree of equity control is low and has an internal resource growth. 5c) which of the four multinational strategies described in chapter 15 of the textbook most closely resembles your firm;s multinational strategy? Please explain your answer. 4 A) Consider the case of the focal company deciding to set up a new production facility in an emerging market of your choice. Why is this an appealing emerging market? The African market for Heineken is an appealing emerging market to expand in. This is due to a number of reasons: Population growth on the African continent is expected to grow from 1 billion as of today to 1.2 billion in 2020 and the African population is still relatively young in comparison to other established markets such as Europe and North America. Besides this, the middle class in the African content is growing steadily, consumers are  becoming more band-conscious and GDP per capita has been positively growing since the last decades due to the improving political and economical environment. Heineken is thus, presented with a number of advantages, in which the long term clearly outweighs the threats in establishing itself firmer in this emerging market. What are the threats that Heineken faces in penetrating the African continent as an emerging market more firmly? An issue that has encircled Africa throughout its history is the problem of corruption and bureaucracy. However, due to globalization and the increased interconnectivity around the globe this ethical issue has become a more prevalent topic amongst societies to be discussed and the same goes for the African countries. Although the issue still exists MNO’s argue that there’s a slow but gradual decrease in the severity of it in the African countries in which the improved political and economical environment is a positive contributor. Another threat that Heineken faces in the African emerging markets is the lack of good infrastructure and power supplies. On top of this poor education, health care, life expectancy and poverty are some of the other threats that can have an effect on the MNO. 4 B) How should your firm address the opportunities and threats of this emerging market? Some of the strategies Heineken as the multinational organization can undertake is by introducing unreleased brands into the continent. Some examples: are the introduction of the alcoholic apple cider beverage ‘Strong Bow’ in South-Africa, non-alcoholic beverages such as ‘Amstel ZERO’ alcohol that taste like alcoholic beer and a large variety of other alcoholic beverages which all fall under the global Heineken brand of beers. Besides that, Heineken can introduce TCM due to operational excellence, acquired throughout the years, and it can implement innovative and at the same time environmentally friendly PET bottles which they have recently introduced into the Democratic republic of Congo as example to underline their technological innovations. As consumption per capita is growing in the African countries, whilst excluding the steady population growth amongst the  African countries, an increase in demand for premium beer brands is emerging such as the ‘Heineken’ and ‘Amstel’ beers in the African continent in which the MNO Heineken is expected to face tremendous growth opportunities in the following decades. These strategies have been introduced into the European continent and have proven to be very successful, with Africa as an emerging market Heineken can introduce the successfully proven strategies, which the company has used throughout the years to solidify its market position even further. Heineken has a long history of in house training- and development. It has already established regional training schools in Nigeria and the DRC wherein they have established strong management development programs to attract and retain local talents. This is a way for the company to combat the threat of poor education. Heineken tries to better the life of its employees working for the company and as well the lives of people in the region: Heineken has established a healthcare program for all 30,000 of its employees where the government often lacks to adequately provide this. It has set up HIV programs in sub-Saharan breweries to educate its personnel and besides that founded African foundation programs such as Health clinics and malaria projects to better the lives of the people in its direct surrounding. 5 A) Identify two strategic objectives (i.e., reasons) that your firm had for entering a specific foreign country. Please explain your answers. Heineken has recently decided in 2013 that it will be planning on building a 60 million Euros Brewery in Burma (Myanmar). The Heineken group has decided to do so after it has seen positive progress in terms of political and social reforms in Burma. On the 22nd of April this year all sanctions against Burma were lifted by the EU council and on top of this other large MNE such as Coca Cola, Pepsi and Carlsberg have recently decided to move into the country as well. Another reason for entering the Burmese market is that beer consumption in Burma is still at a relatively low level: 3 litres a year per capita whereas its neighbour Vietnam is at a staggering 30 litres+ a year per capita. This gives out a signal that there are a lot of potential profits still to be made especially now that political and social  reforms are taking place. By investing with a 60 million Euros brewery, Heineken plans on solidifying it’s market position even further across the globe. 5 B) Which foreign entry modes has your firm used in the last 6 to 8 years, and which mode was used for which country? Heineken operates in over 71 countries.6 The most common used entry modes that the firm uses consist out of joint ventures and acquisitions. In case acquisition of a foreign company is not a possibility due to government restrictions, Heineken will decide to try and operate as a joint venture. Heineken aims on dominating the global market and is constantly seeking to acquire a larger market share for beer. For this goal, the company tries to enter foreign markets by using Greenfield acquisitions so that they have full control over their operations without having to add new capacity to the industry. This entry mode on top of not adding unnecessary extra capacity to the industry as well comes with a faster entry speed and is most commonly used for emerging markets, where competition and growth in the markets is high. In this case, acquisitions are operated in emerging markets such as Asia and Africa. For example, the acquisition of the beer brand Tiger between Heineken and APB and APIP L enabled the brand to lift with the growth of Heineken. Established local premium brands including Biere Larue in Vietnam, Bintang in Indonesia, SP in Papua New Guinea and Tui in New Zealand share similar stories.7 As for companies that have already acquired a dominant market share in their home country, Heineken opts for joint ventures if they are unwilling to sell, where the two companies then work together instead, and thus limit the financial risk of investment by working together with local firms. 5 C) which of the four multinational strategies described in chapter 15 of the textbook most closely resembles your firm’s multinational strategy? From the four multinational strategies described in International Business book Heineken organizational structure most closely resembles a transnational strategy. This is because Heineken, being the third largest  beer brewer in the world, has practically managed to penetrate itself in all markets in which it sells over 200 international premium, regional, local and specialty beers and cider. This vast variety of different brands has made the Heineken group highly responsive to consumers in which all their needs can be satisfied due to such a broad assortment. Due to Heineken’s high aggregation of benefits such as economies of scale and operational excellence the MNE captures the best of two worlds by being cost efficient and locally responsive, depicting the structure of a transnational strategy. 6 A) Identify two ethical dilemmas that the focal firm faces in a host country of your choice. Why are these issues ‘dilemmas’ and how has your firm dealt with them? An environmental issue that brewers cope with is the negative media of the use of alcohol. Consuming excessive alcohol has many negative health and behavioral risks. For this reason, many governmental laws and regulations charges alcoholic beverages. As a social issue for the company, more than 800,000 car accidents in Mexico occur due to the use of alcohol. Even though these issues impact the social side of sustainability, the health and well being of people. This is an issue to the firm, because they are accused as contributors of the harms as consequences of alcohol causing the firm to suffer from brand damage. Heineken must defend its image as a brewery, especially since the firm is leader of the industry. To avoid shifting the blame on breweries, due to the fact that they have no influence on controlling consumers‘ behavior, they aim on increasing awareness of the consequences of excessive consumption of alcohol. Heineken supports the idea of no physically or behavioral ha rm when moderately consuming alcohol. Heineken aims on contributing to the positive role of beer in society by encouraging responsible attitudes towards alcohol and discouraging the misuse of alcohol. The most important stakeholders in these social dilemmas are the consumers. 6b) Drawing on stakeholder theory, argue to what extent the focal firm should develop a globally standardized strategy to cope with the selected dilemma. The excessive use of alcohol occurs is a global issue. The use of alcohol  and driving does not only occur in Mexico, but causes many accidents and fatalities all over the world. Thus the issues discussed are of global relevance. The harm that this issue emphasizes applies to the users of alcohol and their environment. That is why Heineken launched an Enjoy Heineken Responsibly (EHR) Campaign in 2004, which is globally used. Measures that the firm has been taken include putting this message on all of their cans, bottles and packages. Also, in commercials and on their website they quote: ‘Great opportunities belong to moderate drinkers’ to encourage moderately drinking. Furthermore, they advertising boarding on all major sponsorships or sports. Furthermore, the company also tailored its strategy locally in Mexico, where they launched a Designated Driver Program to encourage attendees of to become or choose a designated driver for different occasions. The program is presented in 92 universities across the country and other youth organizations and events. By doing so, Heineken hopes to decrease the probability of accidents caused due to alcohol. To conclude, Heineken already has a global strategy and a local strategy to cope with the issues. The social issue in Mexico is actually a global issue, since it occurs in many other countries. The reason why Heineken focuses on Mexico is due to the explosive high rates of alcohol fatality in traffic in this country. We support the idea to expand the measurements taken for Mexico to other countries with high fatality rates, for instance in the United States where 31 percent of all accidents include fatality du e to alcohol use in traffic in 2009.8 6c) How do the actual solutions to the focal dilemmas relate to the solutions practiced by Unilever and which approach is better? Sustainability living is the core of Unilever’s operations. It aims on doubling the size of their business and simultaneously reducing their environmental footprint and increasing the positive social impact. As for reducing its impact on the environment through its supply chain, it aims to maximize their Reduce, Recycle and Replace journey. Concluded from their research, 68 percent of their total GHG footprint is founded by the consumer self. 26% of the footprint is due to the raw materials. To solve this, the company came up with improving eco-efficient production and improving the agriculture practices. The related dilemmas that occur between Heineken and Unilever is  to influence consumers behavior. Both companies cope with the fact that they cannot control the consumer use. Furthermore both companies try to communicate their issues through brand name. Unilever copes with this issue by adapting the sustainability plan. As for Heineken, they launched the Enjoy Heineken Responsibly campaign, as mentioned before. What differs is that Unilever focuses on sustainability across the value chain, while Heineken emphasizes the consumer use. From one point of view, the approach of Unilever is preferred over Heineken’s approach, because it tackles the entire value chain. Also, it works on the long-term solution. From another point of view it is clarified that Heineken works on valuing life on a social and physical level, by reducing the possibility of harming social and health. However this does not add value to future generations, thus we believe that Unilever has a better approach to tackle its issues. http://www.heinekeninternational.com/products_brands_brands.aspx http://www.centurycouncil.org/sites/default/files/materials/SODDFIA.pdf http://www.sustainabilityreport.heineken.com/impact/responsible-consumption/encouraging-responsible-consumption-through-our-brands.html http://www.heinekeninternational.com/companystrategyprofile.aspx file://localhost/Users/raymondjansen/Documents/IB/annual%20report%20heineken%202012.pdf book, 373

Topics Discussed in Class - My Participation in Class Assignment - 1

Topics Discussed in Class - My Participation in Class - Assignment Example As consumer earnings converge across nations, the manifestation of value differences will turn into a much stronger factor than expected. This happening makes it increasingly significant to comprehend values of nationwide cultures along with their impact on consumer behaviours and action. Retailing plans for one nation cannot be extended to other nations without adaptation. During my own research, I focused more on the convergence and divergence in consumer behaviour. Basically, a firm has to come up with sells techniques that meet with the limitations of their consumers in a particular market. For instance, when setting the price of a commodity, it is vital for a firm to ensure that the commodity is priced according to the consumer it targets. This means that factors such as consumer income or needs will dictate how much an asset could be priced by an organisation. Presenter 1: Main Arguments Marketers should endeavour to abide by each and every country’s regulations and laws . They should also make efforts to keep up with the regulations and laws, which change frequently and, finally, clarify ambiguous regulations, which concern their activities (Stock & Lambert, 2008, 35). Presenter 1 basically focused on the socio-economic, political, legal and regulatory environments that concern a business. According to presenter 1, the socio-economic, political, legal and regulatory factors that concern a business basically comprise of the political environment, a nation’s sovereignty, democracy, totalitarianism among others. The political environment, as expected, is made up of governmental institutions along with the manning political parties (Mooij, 2004, 98). The presenter advises that a firm has to buy into a nation’s political beliefs in order to be able to venture into that country. The presenter also goes further to argue that a country regime is the one that decides whether a firm will invest in their nation or not, and; therefore, the import ance of a firm to be accepted by the regime. Presenter 2: Main Arguments Before a firm start to sell its products, they should come up with a well planned technique of delivering their services or goods to their target market, as well as a proper way of distributing them there (Lymbersky, 2008, 23). Since presenter 2 was dealing with international market entry strategy, he referred to this as establishing, as well as managing/maintaining contracts with foreign nations. Basically, the presenter thinks that a majority of companies successfully conduct their activities in a niche market devoid of ever expanding into fresh markets. However, businesses attain success or increased sales, business stability and brand awareness through entering a new market. Therefore, a key technique should be devised for helping firms incorporate themselves into new markets. Forming a market entry strategy concerns a methodical analysis of possible customers, as well as potential competitors (Stock & Lamb ert, 2008, 36). A number of the relevant factors, according to the presenter, which are significant in deciding the possibility of entry into a specific market comprise of localised knowledge, trade barriers, competition and price localisation along with export subsidies. The presenter advises that if a firm is aware of these factors, then they stand a chance of venturing into a new market effectively. My Contribution to Topic 1 Even though, the physical environment is not regarded as one

Transportation Infrastructure Research Paper Example | Topics and Well Written Essays - 2250 words

Transportation Infrastructure - Research Paper Example Due to this reason, users consult reliable companies which utilize the latest modes of transportation and technologies for efficient delivery. The use of latest technologies has introduced new trends in transportation industry and put certain direct implications on different actors associated with this field (http://www.transportationissuesdaily.com/technologys-role-in-moving-people-goods-quicker/). These actors include infrastructure (e.g. roads, highways, bridges, railways, subways, tramways, airports, seaports etc), modes of transportation (e.g. buses, cars, rails, trams, planes, freights etc), and functions pertaining to of transportation industry. Since users keep themselves continuously engage with new innovative services in all facets of life, therefore, by focusing on transportation infrastructure, this paper mainly describes the modern developments in transportation infrastructure and its ultimate impact on different aspects of transportation. Infrastructure is basically an organized physical structure which is established for a particular operation at government or corporate level. In particular context, the word infrastructure is used for transportation like roads, water supply, and communications etc. in other words, â€Å"the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions† (Fulmer, 2009). Similarly, transportation infrastructure is an organized structure which is utilized for the shipment of goods, commodities, services and even passengers from one place to another (http://www.askoxford.com/concise_oed/infrastructure). The transportation infrastructure is the sum of all technical instruments and organizations designed to enable persons, commodities, and news to master space. Its format any given time responds to the complex of human needs, economic, social, cultural, ecclesiastical etc.

Law Cases Essay Example | Topics and Well Written Essays - 1000 words

Law Cases - Essay Example Additionally, it questions if limiting specific conduct, can be due to an opinion that is unpopular. South Carolina Supreme Court decision was that the state had no power to arrest and charge the demonstrators totally based on the opinions they were expressing. The court indicated that the defendants were convicted of an offense that was general in nature and not of exact definition. The Supreme Court thus reversed the decision of the State Trial Court. Due to lack of hostility on the side of demonstrators as well as spectators in addition to lack of clear evidence that the traffic flow was disturbed by the demonstrators made the Supreme Court to reverse the decision. According to the Supreme Court, the state suppressed the demonstrator’s freedom of speech. The case involved Florida A&M students who demonstrated in a non-public drive near a jailhouse premises. Despite being warned by the sheriff, they continued with the demonstrations leading to the arrest of 107 students. After being convicted by Florida Circuit Court as well as the District Court of Appeals, the petitioners indicated that they were denied fourteenth amendments rights. The major issue in this case is to determine whether or not the students had the right to engage in a demonstration on non-public premises. Another issue was to determine whether the jailhouse is included in the category of public office. According to the Supreme Court, the drives as well as the jailhouse premises are not in the category of public property. Since the petitioners had no intention of seeking service from the jail the abatement argument was dismissed. During the hearing, violation of constitutional rights was not perceived to have an impact on the case. During this case, the reasoning was that the state has the right to enforce its rules to protect the ground that is private. There lacked recorded evidence

DBDQ1 Convertible Bonds and DQ2 Market Value of Stock Essay

DBDQ1 Convertible Bonds and DQ2 Market Value of Stock - Essay Example The bondholder of a convertible bond benefits from the conversion of a bond into equity when the prices of the common stocks in the market are higher than the principal. DQ2 The stock market is used by investors and businesses to buy and sell common stocks of corporations. The prices of a stock are influenced by a variety of factors. The economy affects the prices of common stocks. When the economy is doing badly the prices of common stocks go down. Another factor that affects the price of a stock is the financial performance of a company. A solid financial performance reflected in the financial statements of the company can help increase the value of a stock. A third factor that affects the price of a specific stock is the market. The market risk is measured by the Beta coefficient (Besley & Brigham, 2002). Out of these three factors the only factor that the firm can control is the financial performance of the firm. I consider the financial performance of the firm the most important factor. References Besley & Brigham (2000). Essential of Managerial Finance (12th ed.). Forth Worth: The Dryden Press. Investopedia.com (2011). Convertible Bond. Retrieved May 15, 2011 from http://www.investopedia.com/terms/c/convertiblebond.asp

Coffe Shop Assignment Example | Topics and Well Written Essays - 3500 words

Coffe Shop - Assignment Example Such a center would comprise of the serenity of a calm environment while also providing the rejuvenating refreshments that often correlates with a hassle-free refuge as a necessity for academic or professional research. Of course, the goal of combining the library/caf institutions would be to increase attendance to both the establishment and the downtown community. Like any business, a survey of current customers, i.e. readers/researchers, along with potential attendees must be taken into account if this establishment is ever expected to thrive. Therefore, samples of both categories of people were surveyed to answer the caf/library proposal. The first category of people were provided by Tony Barnett and library staff to meet an established criteria of frequent users, ages ranging from thirty to fifty years. Category number two is composed of individuals solicited by researchers that reside or are employed within a one-mile radius of the downtown area. These individuals are also within the thirty to fifty age ranges. With these candidates, the survey brings the opinions of both current attendees and very potential attendees. To better understand these candidates and their aspirations for the library, they were asked their own personal reasons for utilizing the library. Responses were various to include matters like researching, enjoyment, a place to bring children, internet accessibility, to save money, to utilize a silent environment, the abundance of informational resources, and for the programs any given library often offers. The fundamental purpose for any library will naturally be maintaining and offering informational resources. This correlates with the need to research and the quiet setting to achieve such a goal. Internet accessibility can also be paralleled with informational resources as the internet is perhaps the most modern and rising form of informational media. In fact, many libraries use the World Wide Web as a basis for cataloging the entire inventory of literature they may preserve. Accessibility to the internet in conjunction with the entire stock of literature allows people to save m oney on internet bills and book prices. Without this free access to media and literature, the general public would lack an overall ability to be successful, free-thinking citizens. And of course, there are the children to take into consideration, a population with the highest need of informational as well as imaginative enlightenment. Though schools are the primary establishment ordained to teach children, it is the library that allows for independent study in any field a pupil may deem fascinating. Without the library, the supportive ammunition essential to education would be seriously hindered. In essence, libraries are the pillars of the American educational system and still they remain the preserving force of all human knowledge. The question that comes to bear is how to reinforce these pillars: how can the library improve This question was bestowed to both groups and again a variety of responses were given. The primary concern of group one can be summarized as a need for a more

Service Profit Chain Valuation Argument about whether employee Essay

Service Profit Chain Valuation Argument about whether employee satisfaction can lead to Customer satisfaction in hence leads to customer loyalty - Essay Example Customer loyalty means that the resort will have repeat business from the same customers and, therefore, remain doing business (Kamakura et al. 2002, p.311). Furthermore, customer loyalty increases the repurchase levels which translate to profitability and a large consumer base. In the service industry, consumer satisfaction is the driving force behind marketing thought and practice (Chakrapani 1998, p.47). In practice, consumer satisfaction is the consumer’s comparison between their purchase and use with the rewards and costs of the service. Other than consumer satisfaction, employee satisfaction is also another factor that determines the profitability of resorts and spas. The employees provide the various services to the customers. Their service delivery is what determines the customer satisfaction and loyalty in the long run. For this reason, employees are the essential part in the service industry. Management in this industry has to manage employees in such a way that they are satisfied. This is the biggest challenge in the hospitality industry as it determines the overall success of the resort or spa. In addition, employee satisfaction increases guest satisfaction and ultimately guest loyalty. This essay analyzes the two concepts, consumer satisfaction, and employee satisfaction, using the service profit chain theory to fully understand their significance to the service industry. Advertising and marketing in this industry relies heavily on consumer behavior; it is the success scale of this industry. The challenge in this industry is trying to attract customers for longer visits and repeat business (Smith & Puczko 2009, p.13). In comparison to other hospitality segments, the resort and spa industry is the fastest growing segment in this industry. Their number has grown steadily over the last few years due to their unique and novel services they provide. Smith and Puczko (2009) attribute the growth of this industry to the recent global trend of alternative

Evaluation porsche 911 Essay Example | Topics and Well Written Essays - 1000 words

Evaluation porsche 911 - Essay Example History Porsche has been a name that flashes as a synonym for amazing cars in the heart of almost all the automobile lovers in the world ever since it was founded in 1931. The brand name and the technology of the world’s most beautiful cars belong to the German Genius, Ferdinand Porsche. An originally motor designing company was transformed into a world class car manufacturer by the great vision of Ferdinand Porsche around the World War II. It was the time when the Volkswagen company had to displace Porsche for his English nativity following which he had to undergo a short-term imprisonment. This incident happened to a blessing in disguise as Ferdinand’s son, Ferry Porsche, took inspiration from his father’s skills and designed his own car which impressed the car lovers very soon. As described on its website, this car, fondly called 356 as its own design project number, changed the conservative approach to the car industry by promoting it as a field of perfect in novations for style and speed (‘Porsche: historical background’). This aerodynamic version with unprecedented power packing grabbed the attention of the world very rapidly and from then Porsche became an identity of luxury. The industrial history of Porsche can thus be ranged from 1948 till date with a number of car models and specifications of engines. An overall evaluation of the company’s profile indicates Porsches firmness in retaining its uniqueness in style and marketing. Porsche cars of different strength and enticing looks came flowing into the market over the years with the makers proving their innovation in the automobile engineering for sports utility vehicles (SUVs) as the company was incorporated to public sector in 1984, around twenty years after the introduction of Porsche 911 model. Porsche 911 A car model running a hit story for over three decades may be possible only with Porsche 911. Observers can find that the switching from its dependence on Volkswagen engines and the modification tag of Beetle brand eventually helped Porsche stand as a stalwart in the car designing field. The incredible power of its engine made it a hot choice for the racers and mountain terrain riders. Moreover, this model bears the credit for being the most sort after car with unchanged model name to capture the world market. Even when the competitors had claims that it had a wrong positioning of the engine, the 911 had the reputation for being the first sports car with a five speed transmission. The name was also a significant choice after the French Peugeot had their right reserved over the use of zero in the middle of any brand name. Thus the originally 901 became 911 when the company made commercial production of 1965 model cars. Porsche 911 design Ferdinand Alexander designed the world’s most iconic Porsche cars. The design of the Porsche 911 was introduced in the market with flying colors and this stunning design assisted this model to d ominate the auto market since its launching. The terrific design of the Porsche 911 benefited the company to win the award World’s Performance Car of the Year 2012. Today, many of the leading sports car makers try to adopt different design features of Porsche 911. The company’s philosophy has been giving particular attention to better design since its establishment. The firm’

U.S. Totalization Agreement With Mexico Essay Example for Free

U.S. Totalization Agreement With Mexico Essay The focal point of this paper is to analyze the Totalization Agreement between the US and Mexico. It should be noted that the aspects of this analysis is not fundamentally policy analysis but it intended towards presenting arguments from the point of view of analytical framework. In this paper there would not be any bias or opinion presented rather a comparison would be presented in terms of arguments for and against the issue. It should be stated that in the context of globalization the Totalization Agreement is a very important aspect for the US. Totalization Agreement has the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization better said is the shift in the direction of a more incorporated and interdependent World economy. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange. some intellectual define globalization as convergence of prototypes of manufacture and expenditure and a consequential homogenization of customs, while others strain that globalization has the prospective to take countless miscellaneous appearances. In economics, a wide description is that globalization is the union of prices, wages, products, profits and rates of interest in synchronization with developed nation norms. Globalization of the financial system depends on the position of international business, human migration, incorporation of pecuniary markets, and mobility of capital. The International Monetary Fund observes the increasing financial interdependence of countries all over the world through rising quantity and multiplicity of cross-border dealings, gratis international capital flow, and comparatively faster and extensive dissemination of technology. In contemporary economic scenario the prevailing trend is expansion in the global market. Global market expansion is nothing but a concept of serving customers beyond the limits of domestic market and in economic scenario considered a key growth strategy. Global market expansion is a business reality that every company encounters at some point in its evolution. Under such circumstances every business venture must balance risk with rewards, the risks when expanding internationally can be less predictable and in the same way the rewards can be more elusive. The companies, which are looking for sustainable ways to grow and diversify their revenue streams, consider global expansion as a strategic option. There are several factors behind the trend toward expansion in the global market. Companies require a global presence. For both offensive and defensive causes, companies cannot overlook opportunities outside their home markets. A company’s requirement for a global presence arises from two factors, their capability of leveraging domestic relationships outside their country and a requirement from domestic customers to support the company’s products internationally. A global expansion allows companies to replicate successful domestic strategies in international markets, potentially in markets with lower competitive intensity. Additionally Global market expansion provide the companies large untapped markets, advantages of low labor costs, savings of shipping costs, speed and efficiency of delivery system, etc. These factors make the Totalization Agreement between the US and Mexico more important. (Fletcher, 2006) The Totalization Agreement between the US and Mexico could be better understood in the light of the history behind it. For more than thirty years US has been establishing agreements relating to social agreement internationally keeping in mind that these agreements should coordinate with the program by the Social Security of the US. These agreements based on the aspects of programs related to Social Security of the US are cumulatively pronounced as totalization agreements. Under these agreements there are certain advantages. However, from the point of view of the US these advantages can broadly be divided into two parts. The first objective is to eradicate double taxation for workers employed in foreign nations. Without the agreement an individual would have to pay two times as tax on the earnings. The current report suggests that the benefit of Totalization Agreement between the US and other countries has help US workers working abroad at lot. The cumulative savings are estimated at $800 million per year. The second objective of Totalization Agreement between the US and other countries is to provide an individual who is part timer as a worker in either in the US or the foreign country the proportional tax benefit that is so important for the worker. In this context the agreement between US and Mexico becomes very important in the context of financial benefits. It has been estimated that once the agreement of Totalization is signed between the US and Mexico the workers from the United States in Mexico would be able to save about an estimated $140 million. These savings would be made in the parameters of Mexican taxes relating to health insurance and social security measures. However, it should be mentioned that this estimation is calculated on the basis of a 5 year term of computation. Again, in the perspective of humane benefit it would immensely help the workers who have been working in Mexico for a shorter period of time in both US and Mexico as because this agreement would help them to receive the benefits. (King, 2006) It could well be stated that Mexico is a prominent partner of the US in terms of trading. In fact it is the second largest after Canada. This way it becomes important for the US to indulge in Totalization Agreement with Mexico. As it is Mexico is already under the Totalization Agreement with Canada making it mutually beneficial for both countries. The advantages and disadvantages of Totalization Agreement with Mexico have been heavily scrutinized and debated in recent years. Proponents of Totalization Agreement with Mexico say that it helps developing economies catch up to highly developed industrialized economies much faster through increased employment and technological advances. Critics of Totalization Agreement argue that it weakens national sovereignty and allows rich nations to ship domestic jobs overseas where labor is much cheaper. The main advantages of Totalization Agreement are as such, increased free trade between the two nations, increased liquidity of capital allowing investors in developed nations to invest in developing nations, conglomerates are having greater flexibility to operate across borders, global mass media binding the world together, increased flow of communications allowing vital information to be shared between individuals and conglomerates through out the globe, greater facility and speed of transportation for goods and people, reduction of cultural barriers increases the global village effect, spread of democratic ideals to developed nations, greater interdependence of nation-states, reduction of likelihood of war between developed nations , increases in environmental protection in developed nations. Along with the advantages there are also several disadvantages of Totalization Agreement, such as increased flow of skilled and non-skilled jobs from developed to developing nations as companies look for the cheapest labor, increased probability of economic disturbances in one nation effecting all nations, business influence of nation-states far exceeds that of civil society organizations and average individuals, apprehension that control of world media by a handful of conglomerates will limit cultural expression, greater possibility of reactions for globalization being violent in an attempt to conserve cultural heritage, greater danger of diseases being transported inadvertently between nations, spread of a materialistic lifestyle and outlooks that sees consumption as the path to affluence, international bodies like the World Trade Organization interfere with national and individual sovereignty, increase in the probabilities of civil war within developing countries and open war betw een developing countries as they compete for resources, decrease in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries like Mexico. It could well be stated that in this competition organizations are gradually loosing their ethnic values and morals. Today competence of an individual or a corporate is judged by his or her ability to cope up with constant fundamental changes in the organizational structure. All over the world, organizations aligning new products engineering teams around ‘pit crew’ model. Cross functional teams to design, manufacturing sales and service engineer’s work along with the workers, who at some point of time have stake in the product. This ensures manufacturing and sales people having their say all through the design process and building up the manufacturing capability early on that is currant engineering. The goals are simple, such as speed, equality and competitive price. Commodities have become international for most industries and the impact of engineering is significant. In many organizations, the learning curve in engineering has become an unaffordable luxury. Competitive pressures mandate finding ways to reduce the total time required to introduce new products in the market. Competition along with more complex production and distribution environments requires identifying and reducing necessary costs, such as costs associated with development, manufacturing, distribution and service. However, it can be stated that totalization agreement would have a distinct effect on the Trust Funds but it would be a long termed and virtually negligible effect. It has been estimated that the social security of US bears a cost of about $100 million yearly. This has been the trend for the last 5 years. Thus the totalization agreement would enable the workers of both the US and Mexico to enjoy the advantage of cost benefit as the dual taxation would be eradicated. It should be mentioned in this perspective that the cost benefit of US during the year 2002 was around $198 million with Canada alone under the parameters of the totalization agreement. (Lamb, 2004) Thus in the conclusion it could be stated that there are both advantages and disadvantages in coming into a condition of totalization agreement with Mexico. However, when an international agreement is signed there are multiple aspects to be looked after and these are done keeping in mind the mutual benefits of the nations. References: Fletcher, R; (2006); Beliefs and Knowledge: Believing and Knowing; Howard Price King, H; (2006); Social Security Today; HBT Brooks Ltd Lamb, Davis; (2004); Cult to Culture: The Development of Civilization on the Strategic Strata; National Book Trust.

Impressions After Reading Jane Eyre Essay Example for Free

Impressions After Reading Jane Eyre Essay Jane Eyre, written by Charlotte Bronte, was met with great enthusiasm and became one of the best sellers since it was published in October 1847. The story of Jane Eyre takes place in northern England in the early to mid-19th Century. It starts as the ten-year-old Jane, a plain but unyielding child, is excluded by her Aunt Reed from the domestic circle around the hearth and bullied by her handsome but unpleasant cousins. Under the suggestion of Mr. Lloyd, an apothecary that sympathizes Jane, Mrs. Reed sends Jane to Lowood Institution operated by a hypocritical Evangelicalist, Mr.  Brocklehurst, who chastises Jane in front of the class and calls her a liar. At Lowood, Jane befriends a young girl named Helen Burns, whose strong attitude towards the school’s miseries helps Jane a lot. Also, she is taken under the wing of the superintendent, Miss Temple. After spending eight years at Lowood, six as a student and two as a teacher, she accepts a governess position to teach a loverly French girl named Adele at Thornfield, where she falls secretly in love with the garden’s owner, Rochester, a man with a warm heart despite a cold face outside. However, fate decides to play a joke on Jane. On the wedding day , as Jane and Rochester prepare to exchange their vows, Jane is being told that Rochester has a legal wife, Bertha Mason. Knowing that it is impossible for her to be with Rochester, Jane flees Thornfield. Penniless and hungry, Jane is taken by Rivers siblings Mary, Diana and St. John. , who live in a manor called Moor House. Jane happily accepts the offer of teaching at St. Johns school. She later learns that the Rivers siblings are actually her cousins and that she has inherited from her under a vast fortune, which she divides among her new family. At that time, St. John is about to go on missionary work in India and repeatedly asks Jane to accompany him as his wife. One night, when she is about to accept St. John, Jane experiences a mystical connection with Rochester, and she decides to seek him out at Thornfield. She discovers that the estate has been burned down by Bertha, who died in the fire, and that Rochester, who was blinded in the incident, lives nearby. Jane goes to him at once, at there they get married. The development of Jane Eyre’s character is central to the novel. From the beginning, Jane possesses a sense of her self-worth and dignity, a commitment to justice and principle, a trust in God, and a passionate disposition. Her integrity is continually tested over the course of the novel, and Jane must learn to balance the frequently conflicting aspects of herself so as to find contentment. An orphan since early childhood, Jane feels exiled and ostracized at the beginning of the novel, and the cruel treatment she receives from her Aunt Reed and her cousins only worsens her feeling of alienation. Afraid that she will never find a true sense of home or community, Jane feels the need to belong somewhere. Thus Jane says to Helen Burns: â€Å"To gain some real affection from you, or Miss Temple, or any other whom I truly love, I would willingly submit to have the bone of my arm broken, or to let a bull toss me, or to stand behind a kicking horse, and let it dash its hoof at my chest†. This desire tempers her equally intense need for autonomy and freedom. Her fear of losing her autonomy motivates her refusal of Rochester’s marriage proposal. Jane believes that â€Å"marrying† Rochester while he remains legally tied to Bertha would mean rendering herself a mistress and sacrificing her own integrity for the sake of emotional feelings. On the other hand, her life at Moor House tests her in the opposite manner. There, she enjoys economic independence and engages in worthwhile and useful work, teaching the poor; yet she lacks emotional sustenance. Although St. John proposes marriage, offering her a partnership built around a common purpose, Jane realizes their marriage would remain loveless and that this kind of freedom would constitute a form of imprisonment, because she would be forced to keep her true feelings and her true passions would be always in check. Nonetheless, the events of Jane’s stay at Moor House are necessary tests of Jane’s autonomy. Only after proving her self-sufficiency to herself can she marry Rochester and not be dependent upon him as her â€Å"master. † Edward Rochester, despite his stern manner and not particularly handsome appearance, wins Jane’s heart, because he is the first person in the novel to offer Jane lasting love and a real home. Although Rochester is Jane’s social and economic superior, and although men were widely considered to be naturally superior to women in the Victorian period, Jane is Rochester’s intellectual equal. As Jane says: â€Å"I am my husband’s life as fully as he is mine. To be together is for us to be at once as free as in solitude, as gay as in company. We are precisely suited in character—perfect concord is the result†. Rochester regrets his former libertinism and lustfulness, nevertheless, he has proven himself to be weaker in many ways than Jane. St. John Rivers provides the most typical model of Christian behavior. He is a Christianity of ambition, glory, and extreme self-importance. St.  John urges Jane to sacrifice her emotional deeds for the fulfillment of her moral duty, offering her a way of life that would require her to be disloyal to her own self. But Jane ends up with rejecting to sacrifice passion for principle, which doesn’t mean she abandons a belief in God. Jane ultimately finds a comfortable middle ground. For Jane, religion helps curb immoderate passions, and it spurs one on to worldly efforts and achievements. These achievements include full self-knowledge and complete faith in God. Mr. Brocklehurst, the cruel, hypocritical master of the Lowood School, illustrates the dangers and hypocrisies that Charlotte Bronte perceived in the nineteenth-century Evangelical movement. Mr. Brocklehurst adopts the rhetoric of Evangelicalism when he claims to be purging his students of pride, but his method of subjecting them to various privations and humiliations, like when he orders that the naturally curly hair of one of Jane’s classmates be cut so as to lie straight, is entirely un-Christian. Of course, Brocklehurst’s proscriptions are difficult to follow, and his hypocritical support of his own luxuriously wealthy family at the expense of the Lowood students shows Bronte’s criticism to the Evangelical movement. Helen Burns is Jane’s close friend at the Lowood School. She endures her miserable life there with a passive dignity that Jane cannot understand. she believes that justice will be found in God’s ultimate judgment—God will reward the good and punish the evil. Jane, on the other hand, is unable to have such blind faith. Her quest is for love and happiness in this world. Nevertheless, she counts on God for support and guidance in her search. Throughout the novel, Charlotte Bronte may have created the character of Jane Eyre to voice her then-radical opinions. Much evidence suggests that Bronte, too, struggled to find the right balance between moral duty and earthly pleasure, between obligation to her spirit and attention to her body. She hold the opinion that every spirit is independent, though there are differences in social class, in property and also in appearance. Jane Eyre is critical of Victorian England’s strict social system. Bronte’s exploration of personal equalty is perhaps the novel’s most important theme. I would like to use my favorite words that Jane once said to Rochester to end my article: Do you think, because I am poor, obscure, plain, and little, I am soulless and heartless? You think wrong! —I have as much soul as you—and full as much heart! And if God had gifted me with some beauty and much wealth, I should have made it as hard for you to leave me, as it is now for me to leave you.

Balance Scorecard for Air India

Balance Scorecard for Air India Introduction Air India is the prime and oldest Airline of India. It is the State carrier which currently connects to rest of the world such as the Americas, Asia, Europe, etc. It is headquartered at Nariman Point, Mumbai in the Air India Building. It is the 16th largest Airline in Asia serves out of two major Domestic hubs in India at the Indira Gandhi International Airport, Delhi CST Terminal, Mumbai. The airline started its journey with the Maiden flight from Karachi Airport to Mumbai Airport via Ahmedabad in July 1932. It was founded by JRD Tata and later on acquired by the State. Air India has two subsidiaries and two affiliated carries. Together Air India, Air India Cargo, Air India Express, Indian and Air India Regional form the National Aviation Company of India Limited. It currently serves 11 countries across the globe apart from the various domestic destinations. Air India Cargo It serves as the cargo operator for the airline serving in conjunction with on ground truck-transportation systems and achieving synergies to increase returns. The carrier also is allowed to carry dangerous (hazardous cargo) animals under IATA rules. Air India Regional The airline previously known as alliance air serves the interior small airports domestically to serve the needs of such regions with smaller aircrafts. The hub for this is at the IGI airport in Delhi. Indian It focuses on the domestic touch points for the airline. It serves various destinations in the country with two major hubs at Delhi Mumbai. Air India Express The airline subsidiary was formed in 2005 to serve the low cost space in the South east Asia and the Gulf region. This is a no frills airline which focuses on the low cost travel mind space for its consumers. Tangible Assets Fleet and Material Resources Air India has continuously being trying to improve its Aircraft fleets. It has recently added 17 new aircrafts which include B777s- Long range aircrafts and it has also procured some 15 new airbus aircrafts to serve its domestic destinations. Currently the Air India fleet stands at a strong 136 aircrafts. Air India serves various international destinations such as in the USA which includes Newark, JFK Chicago with its non-stop Boeing Long range aircrafts. The detailed aircraft distribution is as given in the table below: Network Air India operates from various cities across India like Ahmedabad, Amritsar, Bangalore, Chennai, Delhi, Goa, Hyderabad, Kochi, Kolkata, Kozhikode, Lucknow, Jaipur, Varanasi, Tiruchirapalli, Gaya and Thiruvananthapuram in totality 16 cities for its international location flights. The need of boarding flights from metros for international locations has thus ceased thus providing better opportunities to other cities to develop economically and aid in the countrys growth story. The various requirements in terms of customs, etc. are directly done in these cities. Air India also has code sharing agreements with various airlines across the world providing better accessibility to other locations. International Hub: Air India has established its international hub at Frankfurt for better transfers and code shares across the world. It has forged partnerships with Lufthansa and is currently vying for being a part of the Star Alliance. These alliances has strengthened AIs network in the US and Europe to a large extent. Indian Hub: Air India has its domestic hubs in Delhi IGI Airport and Mumbai CST Airport. The firm services 64 Indian cities domestically from these locations. Out of these locations seventeen service to International flights too thereby providing seamless connectivity. The domestic locations are service by Airbus A321 aircrafts with all world class services. Star Alliance Air India is currently in the process for vying to become a part of the International Alliance which will connect it to 916 cities in the world and have code share agreements with 17000 daily routes across the world. Air India club members can enjoy the benefits of International lounges, code shares, loyalty programmes, etc across all the 21 top airlines across the world increasing the service levels to a new height. The alliance is pending at March, 2011. Human Resources Air India has a large base of human resources which makes it one of the poorest in terms of the Human resources quality and performance. The airline pays around 17 per cent of its expenditures as salaries which is much higher than the global average of around 10 per cent. There are around 31000 employees which are serviced by around 14 unions in Air India which creates a huge scope of non-improvement of its current strength of employees. Post the merger the unions have introduced their intent of cooperating with NACIL towards achieving a better way ahead for the airline however issues pertaining to retrenchment and privatization are still serious concerns which the unions take very seriously and are averse to compromise on. The SBU structure which has been brought about in the organization further increases the woes of the Airline as well as the management. The organization has been split into smaller units which are responsible for better management of resources. However the reporting structure is a big catch. A Mumbai Airport Manager is reviewed by the ED of west zone but reports to his SBU head which is in no way related to his performance appraisals. The award of International postings is carried out by a third party who in no way is related to the current chain of reporting and is a commercial director who sits in the HO at Mumbai. Such an organizational structure calls for low performance and lack of accountability from the employees which will lead to non-performance from the organization in the long term. IT Technology resources IT is one of the most critical resources for the success of organizations in the modern times. The merger synergies would have IT as a critical input. One of the major exercises is to have a common airline code which would also help in the eligibility to the Star Alliance. As a measure the airline has contracted the IT serviceability to SITA (Society International Telecommunications Aeronautics) which has had more than 50 years of experience with the airline systems in Air India. The deal worth 845 crores is for a period of 10 years and is aimed at establishing network connectivity at all domestic and international locations for Air India, fare management, baggage tracing and reconciliation system, online booking engines, automated boarding control systems, check-in, air to ground communications, etc. SITA will also provide its horizontal passenger service system. Currently SITA provides its facilities to 140 airlines all over the world serving over 120 million passengers across the world to provide seamless connectivity to Air India to International routes and carriers. It would help to strengthen strategic partnerships for AI across the globe. Air India has also been invited to participate in the SITAs horizon board in India which is a partnership between SITA and airlines to develop the next generation passenger service systems across the globe. All these developments would help AI to establish itself as a brand in the PSS system delivery across the globe. SITA in India works with its strategic partners Mindtree NIIT to implement its technological systems and has a workforce of more than one lac employees. Low Cost Resources Livery The new livery which was launched after the merger has characteristics of both the descendants namely AI and IA both. The livery consists of the flying swan and the Konark chakra placed inside it. The Air India brand is mentioned on the tail of the Aircraft in hindi proudly depicting Indias national language. The aircraft colour is ivory with streaks of red retaining Air Indias colour. Also the red and orange streaks presence on doors signifies the merger of the two giants into one single entity. Maharajah Maharaja is the most reminiscent figure which is associated with the airline. It was designed by the duo of Bobby Kooka, AIs Commercial Director and Umesh Rao, J.Walter Thompson Ltd. Way back in 1946 primarily as a memo symbol; however it has translated into much more than that over the years. The maharajah has won various awards around the globe for its uniqueness and antics. The first word customers associate with AI is the puns and antics of the Maharajah. The maharajah is a unique brand proposition created by the Airline which has served it as a brand ambassador across the world. In- Flight Entertainment Air India has a variety of channels which cater to both the audio and video entertainment of its passengers. The customers have a variety of Indian channels such as popular music, ghazals, bhajans, etc. There is also a variety of English music channels having various genres like rock, pop, jazz, alternative rock , classical , etc. There are also a variety of regional channels available in Indian regional languages such as Malayalam, Tamil, etc. and also movies in similar languages are available for flights connecting the South Indian regions to the Gulf and South East Asia. On Ground Facilities Air India has its own exclusive lounges at Delhi, London, Hong Kong and New York in addition to the one in Mumbai. At other international airports, Air India has tie-ups with other international airlines or local Airports Authorities for lounge facility. There is a lounge for unaccompanied minors as well. Online Booking The quick, easy and convenient way to book AI tickets online through the Air India website. An e ticket will be generated and the details with the e ticket link will be emailed to the passenger. Air India has extensive facilities for Web check in and Tele check in for its passengers to provide ease of facilities. Dining Air India has a variety of menus to cater to a variety of tastes for its passengers. There is a choice of Indian, Continental, Western and Asian cuisines. There are certain special cuisines available on some routes like Japanese cuisine on the Tokyo route, etc. The special requirements of certain passengers also met with a variety of more than twenty six dishes available. There is a large assortment of wines and drinks to choose from giving the passenger a world class dining experience. Balance Scorecard at Air India The balanced scorecard is a holistic design of looking at an organization. It helps align the activities of the business to the vision, mission and the strategy of the organization. It helps improve communication, both internally and externally as well as measure the performance against said goals using proper metrics. Balanced Scorecard concept was started by Dr. Kaplan and David Norton as a means of measuring performances of organization. It was a measurement framework, which for the first time added non-financial metrics along with the traditional metrics that gave managers a better view of the performance of the organization. Over the years, balanced scorecards were refined to become a complete planning and management system for strategy. It helps operationalize vision and mission documents; progress on which can be monitored daily. The airline industry is cyclical in nature. Demand fluctuates seasonally; while planning for capacity and investments have to be done long term. This means that airlines usually go through sessions when they are operating in the red financially. Hence, it makes perfect sense to use a Balanced Scorecard to evaluate the performance of the organization. It gives a better indication of the health of the organization as well as helps create proper milestones for evaluating the progress towards strategic goals. Air India has been facing turbulent times recently. A lot of reorganization, restructuring with regards to the organization, finances and fleet have taken place. The company is deep in the red and there have been calls to divest this white elephant. As Air India struggles through this mess, using a balanced scorecard will give clarity to their goals and help them focus their efforts in achieving the said goals. Balanced scorecard has been implemented in several airlines, the most documented one being the Balanced scorecard implementation at Southwest Airlines. Southwest Airline is a USA based low-cost airline company and is also the worlds largest no-frills airline. It is headquartered in Dallas, Texas. Southwest has among the largest fleet of passenger aircraft among all of the worlds commercial airlines, operating more than 3200 flights daily. Southwest is also a very profitable airline, having posted profits for 37 consecutive years. The balanced scorecard implementation at Southwest airlines has gone through a series of iterations and they are currently in their 3rd generation. We suggest a similar balanced scorecard for Air India. For the balanced scorecard we must have: Vision Mission Core Goal Activities and Outcomes Vision statement is the picture of your company in the future. It forms the lynchpin around which strategy formation takes place. Mission statement is the fundamental purpose of the existence of the company. It clarifies Why do we exist? Core Goal is the goal that is to be achieved by the balanced scorecard. Activities refer to processes that take place inside the organization, that lead to desired outcomes. Activities consists of Internal Processes Learning and Development Outcomes consists of Financial Performance Customer Satisfaction Activities are internal to the organization, while the outcomes in terms of financial outcomes and customer outcomes are visible outside the organization. Also internal processes, Learning and Development are long-term goals while financial and customer outcomes are more short-term goals. However they act as leading indicators of the changes happening in internal processes and Learning and Development. These show that the activities that were internal to the organization has reached a point of maturity that they have started impacting the customer and financial outcomes. As shown in the balanced scorecard given below, activities and outcomes interact with other activities and outcomes and hence no item can be looked at in isolation. The interactions between the strategic goals in each of these four divisions (2 activities and 2 outcomes) have been identified and dwelled upon in the balanced scorecard. The internal processes which must be measured for the scorecard that we identified were: Faster Turnaround of flights Increased Utilization of fleet Adherence to Schedule These will help rationalize workforce, fleets and bring in incremental improvements in operational efficiencies, bringing down costs and making Air India more competitive vis-Ã  -vis low cost carriers. Adherence to Schedule will help Air India rebuild customer confidence in the ability of the Airline to perform. The Learning and Development initiatives that need to be taken up and measured are: Alignment of employees with company goals Cross Functional Training Team work Cross functional Training and teams will increase the efficiency of the organization allowing it to make decisions faster and hence respond more quickly to changes. This is very important for Air-India as the general perception is that the company is slow to change and lethargic in decision making. The financial outcomes from these activities are: Profitability Lower Costs Increased Revenue Fewer Planes The customer outcomes are: Lower Prices On-Time flights Frequent flights Friendly Service Given below is the pictorial depiction of the balanced scorecard for Air India. Resource Based Turnaround Strategy for Air India This part of the report deals with understanding the reasons for the near collapse of Air India and proposing a turnaround strategy for the airline. Since its establishment by the Tata Group and the subsequent takeover by the Indian Government, Air India has seen a lot of issues emerging and changes in the competitive environment in which it operates. These issues and changes have been intensified by uncertain economic conditions, various crises and subsequent recoveries in the European and Asian economies, and a general lack of confidence in professional fields. This has led to a general reduction in the average time available to the organization which seeks to affect a successful turnaround. Also, the rising competition in the field it operates has compounded the problems by making Air India fight for limited resources with players which quite often have people with greater conviction at the top and therefore can allocate a greater part of important resources to the firms operation s. This challenge is primarily faced by organizations which operate in industries that have high technology orientation and companies which typically have high gestation periods where an investment made in any particular area or domain impacts the companys bottom line for a long period. Airlines business being one that is fairly high technology is characterized by factors that include product and/or process sophistication, research and development (RD) intensity, and a large population of technical employees. High-tech firms often encounter rapid changes in technology, demand, and a competition which is overlaid by sharp and unpredictable change. Thus, the AI management must be equipped for change management in line with the changes in the airlines industry environment. Unless this happens it will continue to struggle to remain profitable. This is precisely what has been encountered in the case of Air India. Within this high-velocity context, any turnaround strategy is faced with unique challenges. These have been depicted in the figure below. Business Decline The framework that the group uses in analysing the reasons for Air Indias failure and proposing the turnaround takes a new view of turnarounds by integrating constructs drawn from existing turnaround literature with others from the resource-based view of the firm. It proposes that efficient business operations are based on a combination of factors like key resource availability, germane strategy, and appropriate implementation of that strategy through adequate resource leveraging. In this case the financial and human resource would be the resources AI must look to leverage. Important resources within an enterprise can also act as the base for a turnaround strategy which would foster sustainable competitive advantage. Such resources are often the products of historical strategy and environmental action and are invariably capable to withstand rigorous tests of quality. A list of the key attributes of these resources is provided below: (Refer High-Velocity Environment Trims Time to Act Creating a Framework for High-Tech Turnarounds by Rolph N.S. Balgobin, Naresh Pandit; Nov 1, 2002) Turnaround Strategy Turnaround attempts are often the result of existence-threatening decline, there exists a lot of uncertainty with the origin of the points of change intervention and the role of the new top management. Frequently, a turnaround attempt is initiated after pressure from a significant stakeholder, such as a parent company or strong shareholder group. Air India has witnessed this quite a few times as with the ascent of every new government at the center of Power in New Delhi, the attitude towards the airline has changed. Hence pressure often came from the private players whose bids to take over the airline provided the fillip to the management of the airline to change the scheme of things at Air India. In most cases, the need for the change happens internally, usually started by the management who sees the signals of an impending decline. Also in new age high-technology firms, turnaround need not always be a management driven effort. However, the attitude of managers is just as necessary as having new leadership in getting the turnaround efforts going. The success of turnaround recovery plans are different from the unsuccessful ones in many ways (refer to the points mentioned below). In the cases of turnarounds that are successful, analysis-led understanding of the dynamics of the business is done using a diagnostic review. This provides a clear indication of the turnaround opportunities that are available. These opportunities have to be pursued with the goal of creating a sustainable competitive position in the market. Successful turnaround Plan characteristics Result from a diagnostic review (inductive rather than prescriptive) Profitability is explicitly set as an objective A single turnaround plan rather than competing initiatives or no plan at all Communication with stakeholders to ensure alignment A turnaround team develops and implements the plan Causes of decline are appropriately addressed The Process of Turnaround The frameworks used to portray turnaround are often depicted as a sequential process, which starts with the management initiating the attempt, then retrenchment, consolidating and then returning to a growth stage. But in high tech turnaround process there are four distinct stages crisis development, management change, transformation and stabilization, and return to growth. In the case of Air India, the Crisis Development phase started in the year 2008-2009 when the airline reported financial losses of 5000 crores. Due to this, the airline couldnt pay the salaries of its employees leading to a massive announced by the employees in the summer of 2009. This was one of the biggest human resource crises in the history of Indian business with nearly 30000 Air India employees going on strike. Immediately following this, the disastrous incident of the crash of Air India Express Flight 812 leading to the death of 158 people, happened. The change phase, unlike in the more traditional sectors, change happens not at the top as turnaround starts happening. There is often a change of problematic management, mostly purporting the point of view that a CEOs knowledge and relationships are crucial to a successful recovery. The same happened in the case of Air India. The entire top management of Air India was recast in a period of 30 days by the then aviation minister Mr. Praful Patel. As part of the shakeup, several old time directors were asked to leave and a Professional Chief Operating Officer was appointed under the CMD, Mr. Arvind Jadhav. In the third phase, a lot of actions happen simultaneously; these include cost rationalization, asset rationalization, revenue creation and product and market reorganization. In turnarounds that are successful, organizations should be careful not to lose resources that may be useful to recovery. This happens when they concentrate on surviving rather than on competitive leadership. Reflex cutbacks should not result in loss of key resources in firms successful in turning around their organizations. Instead, the focus should be on reducing costs. Also Air India disinvested some of the less efficient parts of its operations, while retaining the more important and useful ones. After an early emphasis on cost reduction, the focus of Air India then shifted to Structural alterations, joint-venture participation, investment, and the introduction of new products. There is a significant deviation in the experience of firms operations in more stable industries, which suggests that it is the high-competitive environment that demand that the changes occur simultaneously rather than sequentially. But as the transformation takes place, the turnaround of the firm goes through an inflection point that causes a shift in focus from cost and asset reduction to growth of the firm. In the case of Air India this has been characterized by the commitment of the top management to the growth of top line and sales and a conscious effort on the part of the airline to drive up volumes and occupancies of the airlines. The airline plans to reduce its price up to 23% by the end of this year. Industry experts see this as a clear sign of conscious effort on the part of the airline to drive up its volumes and occupancy rates. The last phase of the turnaround is punctuated by the assumption that for survival the focus has to be on growth and acquisition. In high competitive industries, this phase does not usually require that the CEO change or that the management change. Our group expects the same to happen by the end of the nest fiscal year when the economy would have recovered and new opportunities would arrive at the horizon for the troubled airline. Influencing Factors Literature study says that significant differences exist between successful and not so successful cases when they are compared in terms of their contextual and situational factors of turnaround attempts. Factors related to macroeconomic improvement and market growth appear to be assisting turnaround attempts. Though, it also has been seen that these environmental changes are not deterministic. With each organization being a unique collection of resources, external events do not seem to be having a uniform impact. Thus, a rising tide seems to lift only the seaworthy boats. External influencing factors include: Macroeconomic Improvement Market Growth Stakeholders attitude. Interaction of an organization with stakeholders such buyers, employees, suppliers, unions, bankers, the government and the community play a major role in determining the success of the turnaround efforts. When important stakeholders hold an active interest in the business viability of the firm, the chances of success appear to be greater. Internal Influencing factors include: Mission institutionalization Availability of financial resources Power concentration, and Perception of the permanence and controllability of decline. Mission institutionalization, primarily driven by the internal and external expectations of the businesses the firm should be in, can be a major abettor or inhibitor of positive change demanded by an intended turnaround. In cases where the changes required put the firm in a new strategic domain (say that of the low cost carriers), mission institutionalization can often hinder efforts of a swift shift in strategy if a firms constituents instinctively negate or refute out courses of action that are seen to be inconsistent with the vision and mission of the firm or its founders. This in Air Indias case can be explained by the reluctance of the airlines part to move into low cost carriers strategic domain. While this remains a possible strategic domain for the future, the airline showed remarkable reluctance in adopting this as a possible strategy. Maybe the Maharaja cant fly cheap after all. Available financial resources are one of the important requirements for a turnaround attempt, especially if the firm has considerable cash demands. Even then, availability of funds has still not been found to be one of the deciding factors in the outcome of a full-fledged turnaround effort. This is a significant finding as it often is suggested that firms in stress require only a steady input of cash until their products or services regain market acceptance. Also in the case of Air India with the airline being heavily government funded, the opportunity to save money and possible publicize it makes a great political success story and a PR opportunity. Of greater impact on the success of a turnaround attempt is the concentration of power within the organization. Firms with higher levels of power concentration are a lot freer to strategize, develop and also implement successful turnaround plans, while the cases that fail are often constrained or reined in by parent companies, powerful stakeholders like political parties, or internal politics. In non-turnaround cases, the management appears to have far less power relative to that owned by the stakeholders. In the case of Air India, with the creation of a new position of power of CEO, can potentially dilute the power vested in the top management. Yet considerations of operational efficiencies far outweigh the concern for power dilution. Similarly, with the entire airline industry showing signs of recovery with the economy firmly on the path of recovery, the perception of the permanence and controllability of decline is that of impermanent and one that can be managed by suitable strategy implementation. Strategy Implementation Successful firms reduce their resource base in those areas which are no longer core activities. Failed firms are more far likely to dispose or sell off on otherwise lose valuable resources than those that might support a recovery attempt. In the successful cases, the remaining resources are often realigned and augmented with the resources which are borrowed through joint ventures, development agreements, or outright acquisitions. This is depicted in the diagram as shown below. Resource Leveraging diagram As a rule, the successful turnaround cases concentrate a majority of their critical resources on a single and consistent turnaround plan, emphasize on a few improvement areas at a time, and focus on a few critical performance levers. They have a strong feedback mechanism to instill new learning deep into the organization. In the case of Air India it would be taking the voice of customers very seriously and trying to create a culture which cares for the people the firm serves. Firms which go through very successful turnarounds are also in a position to blend and balance resources to bring in products and services into the market, while unsuccessful firms often have seem to have an imbalance of skills, which neutralizes capabilities that exist elsewhere in the organization. Finally, parsimonious and frugal resource use and the useful ability to implement turnaround plans quickly also form one of the chief characteristics of successful recoveries. Thus, this is the comprehensive resource based turnaround strategy that we propose for Air India.