Globalisation And Social Security Politics Essay

Globalization And Social Security Politics Essay The hidden thought behind standardized savings measures is that it is an obligation of the general public to secure the common laborers that adds to the government assistance of the general public against danger. It ensures the laborer, yet additionally his whole family in budgetary security and social insurance. The Sate bears the essential obligation regarding creating proper framework for giving assurance and help to its workforce. Thus, a government assistance state is required to take part in all exercises important for the advancement of the social and monetary government assistance of the network. Be that as it may, globalization has influenced the limit of the government assistance state. This section attempts the audit of the writing. The part is composed as follows: Section 2.1 assesses connection among globalization and government managed savings and with the government assistance State. Segment 2.2 decides the connection between government assistance financial aspects and standardized savings. Segment 2.3 inspects the government managed savings in created and creating nations. Segment 2.4 talks about the open activity as a system for government managed savings in creating nations. Segment 2.5 assesses government managed savings in India and in Indian States. Area 2.6 looks at the standardized savings in sorted out and sloppy segment. Segment 2.7 looks at the resettlement and government assistance of resigned Defense work force (ESM)/Veterans: Problems and arrangements. Area 2.8 finishes up the examination. To have a superior comprehension about the effect of globalization on standardized savings, a survey of the various investigations did in various measurements is fundamental. For the accommodation of the investigation the writing surveyed have been ordered into three classes as (an) issues identified with globalization, government managed savings, government assistance state and government assistance financial aspects, (b) issues identified with standardized savings in created nations and in creating nations particularly in India and (c) issues identified with resettlement and government assistance of ESM (PBOR). 2.1 Globalization and Social Security There are hardly any investigations dependent on the specific connection among globalization and standardized savings. A large portion of the examinations broke down globalization according to its effect on government assistance state. In the principal point of view, DHaeseleer, Steven and Berghman, Jos (2005), contended that difficulties of globalization for standardized savings frameworks are genuine and it expands the requirement for upgrading government managed savings. The investigation finished up by proposing that government disability arrangement in low-salary nations ought to be composed in an integral manner, drawing on the qualities of both formal and casual game plans. Future changes ought to be endeavored to advance monetary turn of events and global financial incorporation. Comparative investigations offered by Dries Crevits and Bea Van Buggenhout (2005), the examination endeavors to evaluate the effect of the procedure of globalization on social security. Examination of globalization shows that it has expanded the requirement for socially defensive measures, considering the way that it causes greater disparity, and frailty concerning occupations and income and that it has expanded the regional portability of representatives and businesses. Simultaneously, globalization comprises a danger for the current degrees of social insurance, as called attention to by the social dumping speculation. Social approach creators in this way face some gigantic difficulties, assembling a casing for a summed up essential social insurance at a worldwide level, making sure about the financing of existing government disability frameworks and adjusting the plans to the expanded versatility. Jitka Dolezalova (2001), examined the impact of globalization on frameworks of Social Security in Europe. Globalization powers the nations to go after the ventures with lower duties, and lower social commitments. The impact of globalization is turning out to be increasingly significant and globalization procedure will constrain the Social Security Systems on a correction. Dutt, Amitava Krishna and J. Mohan Rao (2001), study recorded differing sees about impacts of financial changes on social results. It investigated that business and wages are the most significant expected channels through which the social effect of globalization can be felt. Further, the investigation bring up that effect of globalization can be found in government strategy for spending on standardized savings programs. 2.1.1 Globalization, government managed savings and government assistance State The connection among globalization and government assistance state is tended to in this segment. There is a wide difference of perspectives with regards to how globalization impacts on the government assistance state. In the greater part of the examinations, global correlations will in general be limited to specific association for Economic Cooperation and Development (OECD) nations in government assistance spending, for example, Germany, Britain, Japan, Sweden, and the USA, and dismissed the creating nations. Bowles, Paul and Barnet Wagman (1997), recognized four theories concerning the connection among globalization and government assistance state with regards to OECD nations in particular, descending harmonization theory, upward assembly speculation, the combination speculation and the globalization insignificance speculation. To demonstrate the speculation the markers like government assistance state spending on training, wellbeing and standardized savings and government assistance has been utilized. The outcomes demonstrated that globalization may in fact have represented a test to the government assistance state. Rudra, Nita (2004), explores the connection between receptiveness, government social consumptions (i.e., instruction, wellbeing, and standardized savings and government assistance), and salary conveyance through a period arrangement cross-sectional board informational collection for 35 less created nations (LDCs) from 1972 to 1996. The outcomes show that while all classifications of social spending help improve pay dissemination in more extravagant nations, the impacts of social spending are significantly less great in LDCs. Just spending on instruction in LDCs empowers an increasingly ideal appropriation of pay notwithstanding globalization. The weights of a progressively serious worldwide economy increment motivators for increasingly redistributive instruction spending, while freely supported wellbeing programs and, especially, government managed savings and government assistance programs go up against more noteworthy political campaigning. Minister, Bob (2000), contends that neoliberal globalization is introducing a test to government assistance provisioning in the industrialized nations and to the possibilities for evenhanded social advancement in creating and change economies. This test streams incompletely from the unregulated idea of the rising worldwide economy and mostly from scholarly ebbs and flows prevailing in the worldwide talk concerning social approach and social turn of events. The examination battles that specific worldwide conditions are subverting the possibilities for the other option: fair open social arrangement in both created and creating nations. These conditions incorporate the World Banks inclination for a security net and privatizing system for government assistance; the personal circumstance of worldwide non-legislative associations (NGOs) in giving fundamental training, wellbeing and vocation benefits that may some way or another be given by the state; and the World Trade Organizations (WTOs ) push for an open worldwide market in wellbeing administrations, instruction and social protection. Ming-Chnag Tsai (2007), study explored the impact of globalization on progress in human prosperity by utilizing a period arrangement cross-national information during 1980-2000, a period that watched an incredibly elevated tide of worldwide streams crossing outskirts to extend universal financial mix, set up supranational administration, and cultivate social harmonization. The investigation contributes in offering a hypothetical model and giving experimental proof by testing the guessed connection among globalization and human prosperity. It is inferred that globalization distinguished by expanded worldwide streams and trades contributes as opposed to hampers progress in human government assistance. Stefanie, Walter (2010), talked about how globalization influences the government assistance state. In light of overview information from Switzerland, the examination gives observational smaller scale establishments to the remuneration speculation. It finds that globalization failures are bound to communicate sentiments of monetary frailty. Such sentiments, thusly, increment inclinations for government assistance state development, which thusly improve the probability of deciding in favor of the Social Democratic Party. The examination additionally shows that globalization washouts and champs vary altogether with respect to their social approach inclinations and their penchant to decide in favor of left gatherings. Burgoon, Brain (2001), contended that globalization may effectsly affect government assistance strategy. It can start increasingly focused interest for government assistance pay or less pay. The powerless gathering interest for more remuneration. To demonstrate the equivalent, a cross-sectional information on the connection among transparency and government assistance spending for eighteen OECD nations for the period 1961-94 investigated with relapse examination. The outcome shows that transparency slightly affects government assistance results and in this way, it isn't the most significant determinant of government assistance endeavors in OECD nations. From the above audit, it is conceivable to distinguish two primary contentions about the current and future state of the government assistance state under globalization: the first of these cases that globalization dissolves the government assistance states and its establishments; the second cases that globalization impacts are assimilated and intervened by the government assistance state. 2.2 Welfare Economics and standardized savings From large scale financial aspects point, government managed savings approaches are constantly dissected inside the structure of government assistance state hypotheses. The degree of welfarism embraced by the country states subsequently, turned into the benchmark in understanding distinctive standardized savings instruments. This methodology assesses government managed savings arrangements as far as the quantum of the projects and total of uses. On the opposite side, smaller scale financial aspects break down the issue of standardized savings and we

A Case Study of the Glass Bangle Industry

The glass fabricating industry in Ferozabad, Uttar Pradesh, produces bangles, utensils, bulbs, beautifying articles and so on. The glass business has been delegated risky and the work of kid work (kids beneath age 14 years) in it is precluded. In any case, accessible research and writing showed that kid work was amassed fundamentally in the creation of glass bangles. At the hour of the current examination more than 50,000 youngsters were for the most part accepted to be occupied with the perilous glass bangle industry of Ferozabad.The procedure of production of glass bangles is separated into six separate stages and each stage is finished by a different particular endeavor. At the primary stage, the spring bangles are delivered at a glass manufacturing plant and it includes work at the heater and dealing with, shading, and molding the liquid glass into a spring structure or rings. The resulting forms like fixing, connecting up the edges of the glass spirals, joining the edges, solidi fying them, cutting plans into them and shading the bangles are done in discrete stages by little casual segment undertakings utilizing various instruments like lamp oil lights, grating wheel, mud broiler, and synthetic hues for every one of the processes.Unlike glass industrial facilities, these little casual division ventures are not enlisted and hard to see as they are regularly situated inside family units and in little rear entryways. Besides, the Child Labor (Prohibition and Regulation) Act of 1986 doesn't cover the casual sector.OBJECTIVES AND METHODOLOGYThe study planned to archive the degree of youngster work, sorts of exercises in which kids are locked in, business conditions , and the cost ramifications of wiping out kid work. Information assortment included an endeavor review. As the creation procedure for glass bangles includes various extraordinary and unmistakable stages, undertakings were looked over individual phases of creation to guarantee an agent choice. In ever y one of the 268 endeavors with 4100 specialists and around 1000 youngster workers were covered.Anticipating that the data outfitted by the businesses on kid work and the quantity of kids utilized might be deceiving or horribly downplayed, field examiners were prepared to recognize kids from grown-ups through perception. As this was as yet hard to accomplish for youngsters in the 12-16 age gathering, specialists were permitted to record their perception in both of the three classes ‘definitely adult’, ‘definitely child’, or ‘probably child’. The classification of ‘probably child’ was utilized when an agent couldn't choose if a specialist was a child.KEY FINDINGSThe absolute number of youngster workers utilized in the glass bangle industry was evaluated based on the quantity of kids utilized in various phases of creation. Of the roughly 60,000 laborers in the glass bangle industry, 9,40011,000 are youngsters establishing around 16 t o 19 percent of the workforce in this industry. Work of kids was confinedâ mostly to incompetent occupations like conveying and arranging in the glass manufacturing plants. Inside the phases of creation where a few unique exercises are performed, youngsters do the least talented of these exercises (see table). At the end of the day, kids don't have one of a kind or imperative abilities and are in this way a bit much for the glass bangles industry.The every day profitability per laborer is between 12 to 32 tora (312 or 13 twofold dozen) bangles every day for various creation stages. Kids are regularly said by businesses to work increasingly slow longer hours to accomplish a similar yield as their grown-up partners. Every venture is paid on a piece rate premise. The compensation installment framework has a severe control of the output.Teams of laborers must accomplish an endorsed least degree of yield so as to be given the concurred every day installment, and it frequently takes over eight hours to accomplish this base adequate yield. Since kids are said to work more slow than grown-ups, they for the most part need to work longer hours than Working conditions and Health risks grown-ups so as to accomplish a similar yield and in this manner As ‘carriers’: a similar every day salary. conveying liquid glass from the heater to the Working spaces are little and squeezed. Consumes and respiratory issues are regular word related wellbeing perils (see box). A few youthful guys and grown-ups were seen without the thumb or index finger. Tuberculosis is an exceptionally regular medical issue in Ferozabad.Payments to youngster workers are assessed to represent just around 15 percent of the complete work cost thus around 4 to 7 percent of the expense of delivering a glass bangle. shaper or loom creator, steady presentation to the warmth, sound and contamination. Fixing: work in shut rooms, no cross ventilation and are consistently presented to smoke discharged from many lamp oil lights. Joining and cutting: extended periods of time of sitting in one stance, danger of spasms; constant presentation to smoke from theâ kerosene lamps.Colouring: high poisonous impact of concoction based hues, took care of with uncovered hands; hues adhere to the fingers and palms and are hard to evacuate. The expansion in the expense of creation of one dozen bangles (as most customers purchase bangles by the Hardening: dozen) because of end of youngster work was working around a little heater and hot plate; determined in three distinct ways dependent on three consumes are normal. distinctive assumptions.If a sufficientâ number of grown-up laborers from the huge work save in India are accessible and ready to work at the present, showcase decided compensation rate , there would be no cost impact, as grown-ups would supplant kids at a similar piece rate installment. Suppositions 2 and 3 surmise that grown-up laborers would should be paid a higher compensation ( 10 and 20 percent, individually) so as to pull in the extra grown-up laborers required to supplant the youngster laborers. All things considered, creation costs go up by just around 2-3 paise twelve for plain bangles and 6-12 paise for shaded and definite cut bangles.In rate terms, this would mean just a 0, 2 and 4 percent expansion in the expense of glass bangles in every one of the three situations. Indeed, even at the retail level (which we expect has a 200 percent increase contrasted with discount), the expense of twelve glass bangles would go up by just 10-20 paise for plain bangles and 12-27 paise for shaded and point by point cut bangles. There is no economicâ justification to utilize youngster work in the glass bangle industry, as kids don't involve an important job in the glass bangle creation, nor do they have what it takes that couldn't supplanted by grown-ups, and disposal of kid work would expand the expense of creation just marginally.RECOMMENDATIONSImprove creation i nnovation and workplace of the glass bangle industry. In the shortrun, the soundness of those youngsters who keep on working would improve. Over the long haul, the interest for kid work should diminish as the expanded capital speculations made would make a requirement for increasingly talented and capable grown-up laborers. The quantity of grown-up workers keen on accomplishing this work should increment alongside progress in working conditions and expanded wages coming about because of the requirement for more noteworthy abilities and duty. Subsequently it will favorably affect the objective of wiping out kid work.

7 Monstrous, Feminist, and Free Short Stories Perfect for Halloween

7 Monstrous, Feminist, and Free Short Stories Perfect for Halloween I first became familiar with the term monstrous feminine in a science fiction film class I took in undergrad. The professor assigned us an essay after every film, and after watching the first Alien movie, I did some research and came across the term, popularized by Barbara Creed in  Monstrous-Feminine: Film, Feminism, Psychoanalysis. And of course I wrote my essay about the monstrous feminine in Alien, which the professor loved. It was a definite win of an essay, though an idea already well-covered by academics. After that, I started seeing the monstrous feminine everywhere, and, eventually, I found empowerment and agency in those representations. These female monsters did things I could only dream of, or didnt even know I dreamed of doing. They could enact all the anger and rage I felt toward patriarchal society, and then some. Horror can be a way of healing. We all dream of being a monster, and those dreams dont have to be bad ones. As these short stories show, the monstrous feminine can be damn scary, but also empowering. If youre looking for some unique and scary Halloween reads, then look no further. And theyre all free! Trigger warning: these stories describe sexual and non-sexual violence. The Oiran’s Song by Isabel Yap Isabel Yap the queen of the monstrous feminine in short stories. Four of her stories made my long list until I finally narrowed it down to The Oirans Song, but if you want more monster stories, check out her publications list. Her writing combines the beautiful with the eerie. Trigger warnings abound: its a tough read. The monster here is the Japanese oni, ogre-like creatures popular in Japanese mythology. Fabulous Beasts by Priya Sharma Snakes are creepy in and of themselves, but combine that with abuse, victimization, and gritty writing, and Im both uncomfortable and moved. Which only the best horror fiction can pull off. The Cure by Malinda Lo Vampires are loose in a womans sanatorium. You may already be familiar with Malinda Lo from her popular YA novels Ash and Huntress. This story is a bit of a departure as its geared toward adults, but fans of Lo will not be disappointed. It reminded me a bit of one of my favorite short stories, the classic The Yellow Wallpaper by Charlotte Perkins Gilman. Finnegan’s Field by Angela Slatter I know all of these are horror, but this ones especially dark, I think because the monster is a little girl. I like my fictional children fun and playful. Not . . . like this. Is she a changeling child, or not? This one seriously disturbed me the first time I read it. And the second. Rib by Yukimi Ogawa Another Japanese monster the hone-onna or skeleton woman. She should be terrifying, but this story subverts expectations when a little boy sees something more than a monster. Hungry by Shveta Thakrar This ones very short and not so sweet, in the best of ways. Most of Thakrars stories tend to be gently complex with an edge, but Hungry contains all edge. When a rakshasi a monster from Hindu mythology awakens after centuries, shes very, very hungry. The Mussel Eater by Octavia Cade Mermaids arent scary, right? They wear shell bras and sing a lot and brush their hair with forks. Theres no such thing as a scary . . . oh . . . wait. Never mind. Meet the pania from Maori mythology. They are not your fork-brushing, shell-wearing mermaids of Disney. But they are badass scary. And delightful. What are your favorite stories that feature the monstrous feminine? Save The latest and greatest from the world of horror Thank you for signing up! Keep an eye on your inbox.

The Rhetorical Analysis Of Pierre Trudeaus Speech

Analysis Essay Pierre Trudeaus speech at the Proclamation Ceremony on April 17, 1982 marks a significant historic event that took place in Canada at that time. Up until that point, the country had ruled under the British Parliament, and the Charter of Rights had not been added to the Canadian Constitution. His words appeal to his audience, Canadians of all backgrounds, and the British Monarchy, through logos, ethos and pathos to punctuate this monumental change for Canada. Through the use of figurative devices such as symbolism, personification, diction, imagery, repetition, metaphor, fiction, and conflict, Trudeau enhances the meaning of his speech to more deeply resonate with his audience as their leader. Throughout his speech,†¦show more content†¦(Trudeau) As Trudeau continues his speech, he refers to the present time as a historic achievement for the country. He uses metaphor and symbolism to allow his audience to understand the change by comparing the way Canadians have lived under the British North American Act for so many years to the countrys citizens as being young adults who leave home to build a life of their own, but arent quite confident enough to take along all their belongings. (Trudeau) The way he makes this statement appeals to emotion as the audience relates to the experience of moving out of their childhood home, transitioning into adulthood, which can then be related, through experience, to the change Canada is making as a country. He continues to weave logos into his words, drawing on facts from Canadas history, describing the way Canada has been ruled under another countrys government, and how in 1931 Canada became an independent country for practical purposes with the Statute of Westminster. (Trudeau) As he relives the history of the country with listeners, he establishes credibility by combining facts and logic, with the appeal of ethics. The ethical appeal is used specifically as Trudeau makes his point that the way Canada has been run in the past isnt right, and as a country, Canada should be run on its own. As Trudeau moves on to speak about the future of Canada once under the new Constitution, he uses imagery

Compare The Metamorphosis And Its A Wonderful Life

â€Å"The Metamorphosis† and â€Å"It’s a Wonderful Life†: The Importance of Family Support â€Å"The Metamorphosis† by Franz Kafka and the movie â€Å"It’s a Wonderful Life† by Francis Copler don’t seem to have a lot in common at first glance. One is an old novella taught in literature classes, and the other is a Christmas movie, but if you look closer you can see they share common themes of unhappiness, transformation, and dependence on family support. In both â€Å"The Metamorphosis† and â€Å"It’s a Wonderful Life† the main characters are unhappy in their lives, and go through a transformation where they see what their lives are like without them. We will examine the characters, the journeys they went through, and the different outcomes of similar experiences.†¦show more content†¦Gregor’s transformation begins when he wakes up and is morphed into an insect, and watches his family’s lives progress without him able to support himself, let alone them. In both of the transformations, the two are self-sacrificing, and feel unappreciated. They are stuck in what they see as a dead end job. They are stuck in an unending cycle of work and drudgery, doing something they hate for others. Then there is a big problem in each of their lives. For George it’s the possible jail time, and for Gregor it’s morphing into a giant insect. With so many similarities between the two stories you might expect the outcomes to be the same, or at least similar, but they are surprisingly different. The difference between the two transformations can even be considered extremes. The two are opposites. George Bailey regains his humanity and enjoyment of life when he finds out how important to others and how loved he really is. He ends up a happy and wealthy man. Gregor on the other hand loses his humanity after finding that his family can support themselves and would be happier without him, and thru his family’s betrayal and neglect dies a s ad death. George’s family base is strong and sturdy, and during his time of need they all pulled to helpShow MoreRelatedThe Burial Rights Of The Dead1595 Words   |  7 Pagesforced to endure, despite everything that they have previously suffered. What the author is trying to accomplish with this passage is to make the reader realize this horrible fact. In addition, the author wants the reader to realize the complete metamorphosis that prisoners went through by being in the camps – when Wiesel writes, â€Å"Sons abandoned the remains of their fathers without a tear† (Wiesel 92), the reader realizes that the prisoners’ ‘camp’ mentality is ‘survival of the fittest’ and ‘every manRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesGlobalization 16 †¢ Managing Workforce Diversity 18 †¢ Improving Customer Service 18 †¢ Improving People Skills 19 †¢ Stimulating Innovation and Change 20 †¢ Coping with â€Å"Temporariness† 20 †¢ Working in Networked Organizations 20 †¢ Helping Employees Balance Work–Life Conflicts 21 †¢ Creating a Positive Work Environment 22 †¢ Improving Ethical Behavior 22 Coming Attractions: Developing an OB Model 23 An Overview 23 †¢ Inputs 24 †¢ Processes 25 †¢ Outcomes 25 Summary and Implications for Managers 30 S A L Self-AssessmentRead MoreFundamentals of Hrm263904 Words   |  1056 PagesSkills 25 Case 1: Work/Life Balance at Baxter 25 Working with a Team: Understanding Diversity Issues 25 Learning an HRM Skill: Guidelines for Acting Ethically 26 Enhancing Your Communication Skills 26 ETHICAL ISSUES IN HRM: Invasion of Privacy? 9 WORKPLACE ISSUES: We Are Now Entering the Blogosphere 10 Workforce Diversity 10 The Workforce Today 10 DID YOU KNOW?: Chief Diversity Officer 11 How Diversity Affects HRM 11 WORKPLACE ISSUES: Diversity Awareness 12 What Is a Work/Life Balance? 12 DID YOU

Narcotic Drugs Free Essays

In this paper I will discuss the details the classification of narcotic drugs in criminal law, forensic evidence needed to obtain a conviction in a drug case. The term narcotic implies a state of lethargy or sluggishness. Pharmacologists classify narcotic drugs as substance that bring relief from pain and produce sleep. We will write a custom essay sample on Narcotic Drugs or any similar topic only for you Order Now Unfortunately narcotic has come to be popularly associated with any drugs that is socially unacceptable, as a consequence of this incorrect usage many drug are improperly call narcotics. Most drug laws in the United States incorrectly designated marijuana as a narcotic; even now many drug controlled laws in the United States including federal law, classify cocaine as a narcotic drug (Saferstein 2011, p193). A large number of drug users are in daily contact with a range of criminal justice organizations. The police enforce laws relating to illegal drugs and unlawful activities that surround drug use. It is important to recognize that relationship between drug and crime are unclear. Drug use leads to crime; second crimes leads to drug use and third drugs and crime are related to social force (Hughes, p, 75, 2006). When a forensic chemist picks up a drug specimen for analysis, he or she can expect to find just about anything, so all contingencies must be prepared for. The analysis must leave no room for error because its results will have a direct bearing on the process of determine the guilt or innocence of a defendant. There is no middle ground in drug identification either the specimen is a specific drug or its not and once a positive conclusion is drawn, the chemist must prepared to support and define the validity of the results in the court of law (Saferstein 2011, p204). When someone is accused of a crime involving drugs, more than likely the drugs were taken from their person or property will go from hand to hand as they are processed, analyzed, stored, and sent to the courtroom as evidence. Every time a change of hands occurs, it must be documented to ensure that the evidence was not tampered with or handled negligently. The process that evidence goes through from the time it is seized to the time it reaches the courtroom is called the â€Å"chain of custody. Implementing chain of custody is necessary it’s the start of the foundation of the evidence in question, by showing the absence of alteration, substitution, or change of condition. Specifically, foundation testimony for tangible evidence requires that exhibits be identified as being in substantially the same condition as they were at the time the evidence was seized, and that the exhibit has remained in that condition through an unbroken chain of custody. For example, suppose that in a prosecution for possession of illegal narcotics, police sergeant A recovers drugs from the defendant; A gives police officer B the drugs; B then gives the drugs to police scientist C, who conducts an analysis of the drugs; C gives the drugs to police detective D, who brings the drugs to court. The testimony of A, B, C, and D constitute a â€Å"chain of custody† for the drugs, and the prosecution would need to offer testimony by each person in the chain to establish both the condition and identification of the evidence, unless the defendant stipulated as to the chain of custody in order to save time. Conclusion: Narcotic drugs will forever be around. It’s a complex problem throughout society. It affects people from the newborn stage to old age. Narcotic drugs, takes an enormous toll on lives and communities, especially in developing countries and its contribution to the overall burden and will to increase in the future. How to cite Narcotic Drugs, Essay examples

Privacy Audit Control and the Governance Process

Question: Describe about the privacy audit. Answer: Introduction Auditing tends to be an independent and objective assurance consulting activity that receives guidance from philosophies that add value so as to improve the operations. It also assists the funding parties to accomplish their objectives through the establishment of a significant system and disciplined approach that evaluates and improves the effectiveness of any organization's risk management, control and the governance process (McMillan, 2016). Therefore, as an auditor one is expected to establish or takes the responsibilities given by the board to oversight their function. Hence, it is expected that as an auditor that you adhere to the auditor code of ethics (McMillan, 2016). Therefore, the significance of this paper will be the identification of the codes that are being violated in the three case scenarios and offer a recommendation report that implements the conformation to the privacy legislation issue. Scenario 1 The rising issue that can be outlined in this scenario is the act of Billy taking customers information so as to save potential work for himself. His acts arent necessary because the practical purpose of this step he has undertaken isnt required at this stage. Billy also fails to include the privacy of the information being collected from the customers who have applied in the system. Therefore, in this case, we can outline that Billy has breached three APP rules that are; organizational policies, privacy principles, and data and network security. Organization policies From what we can observe in this case is that Billy was expected to develop a system that suits the policies that are outlined in the privacy practices, and the expectation was that their system will handle personal information for clients, customers and listees in an effective manner. But according to our scenario Billy has failed to include the privacy of information that is being collected from customers who have applied in this system. Privacy Principles The privacy principle requires that there should be an effective, fair information practice being developed in any organization (Peltier, 2014). Since this principle is made up of different components I will outline some of the components that Billy has breached: they are Purpose specification-this component requires that the purpose of collection of information should be set at a specific time of collection. Therefore, further uses should be limited to other purposes. But, according to our scenario Billy collected information for future purposes, thus breaking the law of limitation for other purposes. Hence, his act of taking more data for future purposes can act as a breach of the privacy principles. Collection limitation- is required that personal information should be collected in a fair and lawful channel, and there should be proper consent of the subjects. Organizations must always keep sure that they minimize their data collection only for the present purpose of business conduction (Peltier, 2014). Looking at our scenario what is seen is that Billy decides not to limit his data collection method; he also takes more data for potential work purpose for himself. Therefore, such an act tends to be considered as a breach of the privacy principle. Data and Network Security Security of personal data, whether kept in electronic form, paper form or micrographic form on any website, book, journal or magazine. What should be certain is that there should be a data security breach response plan, high security of clients personal information and effective measures or procedures that make it hard for any past employee accessing data (Peltier, 2014). In this case, Billy deciding to take customers information for future purposes is an act of security breach of data. There is also the aspect of keeping customers information secure, since Billy was the web developer he failed to keep the customers information secure, leading to the breach of APP rules of data security. Scenario 2 In this case, what tends to be observed is Steve as a customer support employee in his daily routines pops out a wrongful customer detail. The contact detail of the person brought up tends to be his old high school friend Peter. Steve then takes the step if keeping the contact and sending his old friend a text message. In such a scenario the types of breach that have occurred are the limitation access control and privacy rule. In access control, the APP rules provide that one should only access information for the purpose of organizational objective. Hence, if one attains personal information from the organizations database for individual purposes it means that he is violating the rule of access control. Therefore, having access control tends to be a necessary factor as it enables the ability of organization to control it clients private information. The APP rules tend to require that any data controller must limit himself from accessing personal data on the need to know basis. Therefore, there should only be greater access limitations or controls to the most sensitive data. Therefore, a data controller should be aware that of the different users and the manners of controlling personal customers information should be only used for business purposes, not for personal reasons (Hightower, 2009). The rule also pertains that any data controller employee must not download or take any personal data from the organization's system. Hence, in our scenario Steve committed a breach of the access control rule. All this occurred when he decided to take the number of his old friend Peter and texted him. Privacy rules As discussed above the privacy rule is made up of different components that govern the methods effective privacy policies. As for this case scenario, Steve has breached the users limitation and quality components. Users limitation- Steves action of taking his old friends number and texting him tends to be a violation, this is because he extended his actions instead of limiting himself from using personal information. Quality- this component requires that personal information is accurate, complete and in timely manners. In this scenario what is observed is that Steve brings up the wrong customer details, meaning that he has affected the quality rule of data keeping. Scenario 3 In this case, we observe that Mary a contract cleaner found an attended file lying open on the desk and reads. Upon reading, she finds a full history of the book titles that characterize the customers history purchases of R18 in the company. In such a case, the APP rules that we can outline that he has broken is that of privacy principle and users authentication. 1) Privacy Principle According to the rule it requires that customers personal information be confidential, and in this case, the principle is made up of components (McMillan, 2016). Hence, the components that he has violated are that of user limitation, purpose specification, and individual participation. User limitations- here Marys action of picking up the file and reading means that he has violated the act of limitation. As a contract employee, she was not subjected to reading the file, in this case, thus breaching the rules. Purpose specification- here it is required that the access and use of information be used for a specific reason. Hence, in our case Mary has violated this by reading the customer transactions history as well as the personal details for no specific reason. Individual participation- here, individuals are allowed to inspect and correct their personal data. From our case, Mary looks at the customers details and comments by herself how disgusting. Such an act tends to be a breach of the privacy principle. 2) Users Authentication In this case, the act of Mary taking the file and deciding to go through it is an act that violates the users authentication rule. The rule requires that an individual should not access a customers file or personal details in any instance except when in need. Task 2 Introduction Express Books should consider taking vital steps for the purpose of protection of personal information which they hold so as to avoid interference, loss or misuse from any unauthorized access such as the case of Mary, the contracted cleaner. Scope of audit Hence, they should consider modifying or disclosing their systems in a unique way that lowers the risk levels of privacy legislation issues, thus this will serve as a proper scope of audit (Lamar University, 2004). Objective of the audit The primary objective of this audit is to make Express organization work on special circumstance appoint that other agencies that are subject to specific legislative requirements. Hence, this objective would protect information, and also the legislative privacy requirements as well as other requirements that apply across the organization. Audit Criteria The audit criteria pertained here is that of protection of personal information for Express Company clients. It is evident that there is misuse of personal information by the organizations employees. Hence, the audit criteria will involve information protection. Audit Finding The findings in this case is that there has been misuse if information. Hence, this audit works on privacy protection which is a critical part in the auditing process. Recommendations Having proper security tends to safeguard personal information, hence the need of making sure that it is considered across all ranges of the companys department. Therefore, this should include the maintenance of physical security, personnel security, computer and networking security, and communication security. Hence, to meet the above set of security measures Express Books should consider assessing the risk, assessing the privacy impact assessments, developing policies, training staffs, appropriate contract management, setting up of high privacy security standards, training staffs to avoid privacy legislation challenges, and lastly is monitoring and reviewing of the legislations (Lamar University, 2004). Depending on the legislative privacy circumstance, the reasonable step that Express Book may include the preparation and implementation of data breach policy and plans. Therefore, the notification of individuals who may suffer from the breach should be notified as this is a reasonable step that should be undertaken (Lamar University, 2004). References Hightower, R. (2009).Internal controls policies and procedures. Hoboken, N.J: Wiley. McMillan, E. J. (2016).Policies and procedures to prevent fraud and embezzlement: Guidance, internal controls, and investigation. Hoboken N.J: John Wiley. Peltier, T. R. (2014).Information security policies and procedures: A practitioner's reference. Boca Raton, FL: Auerbach Publications. Lamar University. (2004).Report to management on audit of investment policies and procedures compliance. Beaumont, Tex.: Lamar University.

Disruptive Changes in the Business Sector

Market Value Concept from an Economic Perspective

Market Value Concept from an Economic Perspective Basically, political economy and in particular Marxian economics, the concept of exchange value is traditionally employed to define one of the core aspects of a commodity. Some of the correlated concepts are price, use value and value. This shows that a product has; a value, an exchange value, use value and a price.Advertising We will write a custom essay sample on Market Value Concept from an Economic Perspective specifically for you for only $16.05 $11/page Learn More These attributes have an extensive history ranging from the era of Aristotle all the way to the period of David Ricardo. However, the entry of Marx concepts tilted the earlier concepts of exchange value. From an economic perspective value is presented as the worth of either goods or services as set or determined by the existing markets. However, this observation does not hold the real formulation of what is in essence defined as value. For years economists as well as other social scientists h ave attempted to link and estimate the significance of value in relation to individual. Similarly, this approach has over the years been extended to both goods and services being exchanged. Hence, such approach saw the development of such dynamic concepts as value in exchange as well as value in use. Thus, examining the argument presented by Kalman Applbaum in the article â€Å"Pharmaceutical Marketing† the concept of value is correlated to marketing and branding. As the article asserts individuals are willing to pay higher prices for a brand than for a helpful product (Applbaum 0446). This concept is thus widely employed by pharmaceutical companies. The core objective of such approach is to create more earnings from a brand value than from the products. What this means is that brand value dictates what the greater society consumes. Equally, this same approach is well illustrated by the manner coca cola brand is marketed. Basically, the brand value seems to be more profound t han the product itself. This indicates that value can be measured as the set price of the given products. However, in regard to the argument presented by neoclassical economists, the value of any product is correlated to its price in relation to the free and competitive market. And the value is thus determined by the demand of the product relative to the market supply. Examining the approach etched in the pharmaceutical industry it can be argued that the market demand surpass the supply and this has played a critical role in establishing what is in essence value. In relation to value in use as well as brand value, these firms have opted to embrace the concepts developed by neoclassical economists.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Thus, the elements of value are not linked to improving the innate consumption of humans but rather to attain the greatest profitable marg in. The principal features which drive such an approach can be explained by the fact that brand value has over the years been used as the vehicle by corporations tied their hope (Applbaum 0447). Hence, this has resulted in a situation whereby brand value supersede the need for satisfying the innate needs of humans through provision of what anthropologists defines as human value. The scope of brand value is thus echoed by Robert J Foster in his article â€Å"The WORK OF THE NEW ECONOMY: Consumers, Brand, and Value Creation. The author observes that consumers tend to go for popular brands while the product manufacturers through elaborate marketing strategies exploit this window presented by brand value (Foster 708). Equally, this results in value creation which rests on brand value rather than on the product itself. Though, Foster seems to suggest that the creation of new values begins with innovation; it is evident that the natural flow of market demands creates values. Thus, in an economic perspective the intensity of value is compactly determined by price as well as the price attached to products whether goods or services. Another notable aspect examined by Foster revolves within the context of satisfying what is defined as surplus value. This concept is defined by Marxian theorists as a notion that attempts to define and explain market instability in regard to capitalism. Thus, this posits that human labor forms the foundation of economic value. Thus, exploring the argument presented in the article we find that the concept of surplus value is definitely less examined. This can be linked to the fact that modern corporations are more concerned in making profits rather than satisfying the market values. Hence, the creation of brand values which are becoming more potent than value in use. Comparing the explanations brought forward by both Foster and Applbaum it is evident that the concept of use value is less considered in the current society. This is elaborate d in the manner diverse organization are anchoring on massive marketing without examining the aspects of use-value which is in essence the qualitative characteristic of value, that is, the solid manner in which a product satisfy human needs.Advertising We will write a custom essay sample on Market Value Concept from an Economic Perspective specifically for you for only $16.05 $11/page Learn More Perhaps that is why Graeber argues that when we are talking of use value we tend to think that we are dealing with definite attributes such as tons of, dozens of or meters of (442). Basically, he notes that use-value correlated to commodities becomes real when the given commodity or product is used or consumed. According to Graeber the concept of value is predominantly defined differently economists (443). To his observations the concept of value have been restricted to market theories which are designed to produce mathematical satisfaction in relation to allocating limit resources while pursuing profits. In essence, the core argument in his article suggests that the concept of value is based on market convenience rather than on satisfying the human needs. Hence he attempts to draw a parallel between what the anthropologists think of values and what economists take as value. From such an observation we are brought to the same sentiments voiced by Foster and Applbaum, exchange value seems to be the determinant factor in regard to what is assumed to be all inclusive. Thus, the scope of neoclassical economy is brought as being the modern measure of value, this approach assumes that human approaches calls for allocation of available resources in pursuit of limited resources. Yet exploring the dynamics of use value, brand value as well as surplus value, this concept fails to satisfy the innate needs of man. What this demonstrates is that the diverse economic projections witnessed have evolved to be restricted to the available resources or markets w ithout exploring other regions of improving on value. As noted in the article â€Å"The Work of the New Economy† the diverse attributes of what is defined as value can be said to be tied to profits This is also established by the massive marketing investments which have overtaken the noble cause of production. It ought to be noted that marketing is essential in building brand value and this has gone to the limit of misleading the consumers who rarely identifies the use value of the given product or services.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Graeber, Value Foster, The Work of the New Economy Applbaum, Pharmaceutical Marketing have all accepted that the scope of value is money-priced. This seems to be due to the emerging market demands which are not fully satisfied. Hence, the dynamics of value are not treated as processes of enhancing social well being rather the concepts of value are left to the domain of traditional social scientists. Thus, it becomes difficult to establish in essence what the core purpose of value is in the growing neoclassical economy. In conclusion, it is evident that the scope of value is the most disputed feature in regard to political economics. This can be allied to the fact that the hypothesis of exchange which rests on the porch of science happens to be the bridge linking problems allied to economics to problems social in nature. And this happens to be the pointer of exiting from the theoretical manipulation affecting the whole sphere of human economy. More so, its conceptual nature makes an objective approach quite complex for all those who have ventured into exploring the aspects of value in regard to human economy. Thus, the concept of market values in regard to exchange values though essential presents a mountain of queries than answers. As established by Graeber the concept of value compactly left behind as the political economists are more concerned with developing attributes that are profit oriented in regard to labor, pricing and distribution. And this seems to be the foundation laid by those advocating for neoclassical economy, that is, capitalist markets. Applbaum, Kalman.Pharmaceutical Marketing.Pls Medicine 3.4. (2006):0445-0447. Foster, J Robert. The work of new economy. Cultural Anthropology 22.4 (2007):709- 729. Graeber, David. Value: anthropological theories of value. A handbook of economic  Anthropology. Oxford: Edward Elgar Publishing, 2005.

Capital budgeting Essay Example | Topics and Well Written Essays - 750 words

Capital budgeting - Essay Example The criteria for selection of projects is that any project evaluated having positive NPV should be undertaken. This method has the advantage of being that it recognizes the time value of money and risks associated with projected future cash flows. However, it has the limitation of not taking into account the scarcity of capital, and secondly, it’s overly simple (Baker and Kent 2005 pp. 234-86). The profitability index is also known as a cost-benefit ratio it works by ascertaining whether an investment is viable and how much profit will result from it. PI is evaluated as follows;Profitability Index = (Net Present Value + Initial Investment) / Initial InvestmentThe criteria for accepting a project is that if the PI is greater than one it should be accepted otherwise it should be rejected. Its drawbacks and advantages are similar to those of NPV (Pogue 2010 pp.86-146).IRR as investment evaluation technique is widely accepted and cushions against NPV and PI limitations. An interna l rate of return also known as the discounted cash flow rate of return offers a means to financial analysts to quantify the rates of return an investment is envisioned to bring if implemented. It is calculated NPV =∑_(n=0)^Nââ€"’Cn/ã€â€"(1+r)ã€â€"^n = 0 Which is equivalent to NPV/(1+IRR)^year) of all positive and negative cash flows While evaluating investments using IRR any project which has an internal rate of return greater than the opportunity cost of a project usually taken to be a weighted average cost of capital-WACC are accepted.

You decide Essay Example | Topics and Well Written Essays - 500 words - 4

You decide - Essay Example The foundation for this attention on the business is that inside the aggregate sum of CO2 emitted at last usage (transportation part, control area and high temperature era), the oil and gas parts represent almost 50% of all worldwide outflows in different sectors(Mckinsey Quarterly organization, 2012). While a lot of people still live trying to claim ignorance about the linkage between human nursery gas (GHG) outflows and the climate framework, numerous different organizations around the globe are as of now occupied with exercises that will decrease their GHG discharges and putting resources into new innovations to take care of vitality demand. These organizations are under steady observing and reputational weight from governments, worldwide bodies, for example, the United Nations (Kyoto Environmental and Regulatory laws) to lessen both upstream and downstream CO2 emanations, and to investigate and execute elective, vitality effective, and low- discharge strategies to meet vitality requests from all areas of the economy. These deliberations will need to be embraced while keeping on proving vitality for financial needs. It is crucial to know the position of the oil and gas industry by investigating a percentage of the techniques has created for decreasing GHG discharges that would include evident changes in the generation and use of vitality. The oil and gas industry perceives the significant issues and prospects that lie ahead in tending to climate change. These are exercises that cant be maintained a strategic distance from on the grounds that they happen commonly, for example, the emission of a fountain of liquid magma transmits Co2, vapor gasses, vaporizers in plenitude to the air. An alternate regular reason for climate change that emanates nurseries gas is the Ocean Circulation which radiates Co2 into the environment. The

Growth And Change Management In Hyundai

Growth And Change Management In Hyundai One of South Koreas largest conglomerates Hyundai group displayed extraordinary growth ever since it was founded in 1947. The area of growth covered car manufacturing, ship building, construction work, electronics and finance related services. The growth pattern of Hyundai was directly linked to the reconstruction programs of South Korea after World War II and the Korean War and also the state led capitalism whose effect could be seen in the polarization of the corporate culture in the country and the increase in many more conglomerates. One of the major companys of Hyundai is the Hyundai Motor Company and is the fifth largest auto maker as per the latest survey. Its headquarters are in Seoul, South Korea (Kirk, 1994, pp213).Hyundai operates the worlds largest integrated automobile manufacturing facility in Ulsan and it is capable of producing 1.6 million units annually. The number of company employees is about 75,000 persons around the world. Hyundai vehicles are sold in 193 countries through around 6,000 dealerships and showrooms all over the world. The Hyundai logo, which is a slanted and stylized H, symbolizes the company shaking hands with its customer. The word Hyundai translates from the word modernity, and is pronounced as Hyon-dae in Korean. The Hyundai Motor Company was founded by Chung Ju Yung. The company vision Our team provides value for your future The company mission To pursue excellence and deliver cars that inspire, so you can live your life In 1947 Chung Ju Yung founded the Hyundai Engineering and Construction Company. The year 1967 was the year in which the Hyundai Motor Company was established. The first model of the company was the Cortina, and it was released jointly with Ford Motor Company in 1968. In 1975, the first Korean car Pony was released. Its styling was by Giorgio Giugiaro of ItalDesign and possessed the powertrain technology provided by Japans Mitsubishi Motors. Exports started the following year to Ecuador and soon thereafter to the Benelux countries. The year 1991 saw the company succeed in developing its first proprietary gasoline engine, the four-cylinder Alpha, and transmission. This led to paving the way for technological independence.In 1983, Hyundai exported the Pony to Canada. This was not done in the United States as it didnt pass emissions standards there. The Canadian sales figures exceeded expectations completely. This was clearly seen when it was at one point the top selling car in the Canad ian market. The Pony afforded a much higher degree of quality and refinement in the lowest price auto segment when compared to the Eastern-bloc imports of the period which were available at that point of time. In 1986, Hyundai began to sell cars in the United States, and the Excel was nominated as Best Product 10à ¢Ã¢â€š ¬Ã‚ ³ by the Fortune magazine. This was largely because of its affordability. The company began to produce models with its own technology in 1988. The beginning was with the midsize Sonata.In 1996, Hyundai Motors India Limited was started with a production plant in Irrungattukotai near Chennai in India.The year 1998 saw major changes happening in Hyundai as started to change its image in an attempt to establish itself as a world class brand. Chung Ju Yung transferred the reigns of Hyundai Motor to his son, Chung Mong Koo, this was in 1999. Hyundais parent company, Hyundai Motor Group, invested heavily. This investment was in quality, design, manufacturing, and future research of its vehicles. The addition of the 10-year or 100,000-mile warranty for cars sold in the United States showed an aggressive marketing related campaign.In 2004 a survey by JD Power and Associates Hy undai was ranked second in terms of initial quality. Currently, Hyundai is one of the top 100 most valuable brands worldwide. Hyundai has also been one of the official sponsors of the FIFA World Cup ever since 2002. Organization Culture and Structure The Hyundai Motor Company (HMC) was established under the leadership of Ju Young Chung backed by a unified and centralized management structure. He exercised the authoritarian style of leadership. The decision making process was carried out by the Chung family. The positive out of this was that such an ownership and structure gave Hyundai Motor Company the power to pursue the external agents and develop long term relationship with them. This was seen when Hyundai Motor Company entered into an alliance with Ford. The chairman refused to transfer his authority to Ford in any way (Russell, 2007, pp.57). The entire financial and personnel support was from HMCs mother company, the Hyundai Engineering Construction Company. This gave him the edge as it was also owned and managed by Ju Young Chung, and thus he could steer HMC in any way. An employee who worked with HMC from the year 1985 to 1996 said that not all executives are affiliated with the Chung family. He stated that they had a few talented professional managers. But the only this was that they never objected to any directions given by the chairman. To be more precise it was next to impossible to present any opinions with regard to anything different from that of Chungs. Anyone who disagreed or even said a word against Chungs decisions would and should be ready to be fired the very next day. He even went on to say that Hyundais entry to U.S. market was Chairman Chungs personal ambition leading the way. But in retrospect he also agreed that without Chungs drive, Hyundais entry into the U.S. market would have been delayed until and unless its technology was comparable to the Japanese or European automakers. Chungs mode of bulldozer leadership was effective and was clearly seen also with Hyundais success. After successfully leading Hyundai Motor Company (HMC) in order to gain entry in the North American market, Ju Young Chung handed over the reigns of the Hyundai group and Hyundai Motor Company to his younger brother, Se Young Chung. This was in the year 1987. The new leadership of HMC followed a very different organizational culture if compared to Ju Young Chungs time. The chairman made attempts to inspire HMC with the new thought process. This was harmonious human relations, autonomous management, responsibility management, and equal opportunity. Thus it drove out the previous emperor leadership concept by the delegation of responsibility as well as authority to the various professionals employed by the organization. This change led to a change in focus with regard to strategy. 1987-1988 Se Young Chung redesigned the HMC and the main aim was to improve the production efficiency which was done by shuffling or merging the various job related functions. The most noticed change in the o rganization chart was the conversion from a functional organization to a divisional organization. This aimed at providing efficient control and evaluation, developed motivation of the management, improved the ability to cope with market diversification and reduction of the cost. The democratization of Hyundai was affected by the political democratization movements in Korean society in the late 80s. This led to a series of labor versus management disputes. HMC was definitely not an exception. In 1996, Se Young Chung passed on his leadership to his son, Mong Kyu Chung. He inherited not only got the title but inherited the leadership style of his father. This allowed HMC to have a smooth transition with very little turmoil. He had a broader vision. He set up a brand new vision which was aimed at a position in the world top-10 automaker ranking in the 21st century and this was possible by occupying four percent of the world auto market. Thus, the primary strategic focus was placed on im proving of image of the brand and consumer satisfaction. This would be carried out via more intense product quality movement, value management, and market globalization. Mong Kyu Chung was also responsible for introducing the team system into the organization, along with more importance to compensation which was performance based. The 1997 East Asian crisis dealt a heavy blow to all the Korean conglomerates. In 1997 and 1998 half of the top 30 of them, including Daewoo, went into bankrupt. This crisis was faced by the Hyundai Group too. This moved the Hyundai group into restructuring its businesses. Almost 70 of the Hyundai affiliates were spun off between 1999 and 2000. The Hyundai group got a lot of public criticism because its restructuring plan was mainly focusing on dividing the property among the family members and followed no management related rationale. HMC was also the main money source of the Hyundai group and was given to MongKoo Chung who was the chairman from 1999 and was also the first living son of JuYoung Chung. This opinion was that he was the image of his father and had led HMC to a more hierarchical decision-making structure and h e also revived the bulldozer type of leadership. However, his strategic direction and organizational structure were not entirely different from the previous ones. While pursuing the global top-five position in 2010, he continued to emphasize on the improvement of product quality, management transparency, and brand value. One emerging challenge to the new leadership was how to cope with the warlike labor-management disputes. The current organization chart is shown below External and internal environment Hyundai is very dedicated towards providing great quality of service, support system and product. This is their policy be it their employees, dealers or customers. Starting from the top all members of the organization is driven by quality and also they strive for the continuous improvement process all across the board. This is mainly true in the area of cost, technological advancement, and efficient operations. Their management is very strongly into conducting business practices which are ethical and lead to creating long term partnerships be it with suppliers, customers or employees. They are the people who are the support system for achieving as well maintaining their competitive advantage, cost savingpurpose and also maintain the technological edge. All this is done while they remain sensitive and receptiveto the diverse communities they operate in. The price review of the stocks and also the brand new and old customers leads them to believe that they are doing a great job with th eir current business strategies. Their stability, efficiency, and profitabilitygoes a long way inestablishing and holding true their credibility to their shareholders and stakeholders. If they can continue to be so responsive to their customer ´s needs, innovative in their processes, services, and products they should have no foreseeable problems. Clearly, Hyundai has become a leader and innovator of quality affordable automobiles for a number of years. They have achieved this because they were nimble and flexible enough to respond to changes in their marketplace and because they have kept their eye on quality, cost, and customer service. Since Hyundai is a worldwide organization they have also had to make the most of their diverse work force, as well as, overcome many regulatory, socio-cultural, and environmental variables of doing business in a multicultural and multi-ethical environment. The first Step would be to outline the Porters five forces (William, 2003, pp.126)which are mentioned in the diagram below Competitive Rivalry within an industry Bargaining power of Customers Threat of new Entrants Threat of substitute Products Bargaining power of Suppliers There is a new entrant threat which exists from countries like China as well as Japan. They might work in such a manner that they grab majority share in the market. The buyers can bargain for much more. Price dissatisfaction is one of the main reasons why the shift would happen on the part of the buyers. Substitution threat is not too high as not many substitutes exist in the market. The only threat would be from modes of transport which are for public use. The level of competition is very high as many believe in growth through gaining on the competitions market share. The power of the supplier to bargain is low even though everything is not manufactured some of the parts are sourced too. The manufactures have the freedom to move to other suppliers also. The environment should be constantly studied. The environment may be internal or could be external as well. The analysis of the situation also needs to be carried out so that everything is in accordance with the policy, strategy and the goals set by the management for the organization. The same way the analysis of Hyundai is conducted which will help to understand the opportunity, strengths, threats and weaknesses which are internal and external. Technically what we are talking about is SWOT of Hyundai. The competency which the company possesses which forms the core of its operation is assessed with the help of this and the decision related to results and performance can be taken. All analysis techniques would be aimed at only one thing which is improvement of the quality of the service as well the product offered by the organization. The basic steps for the process would similar always only the application sequence would be organization sensitive. The procedure would help the organi zation come up with improvement related opportunities. The process which is followed in the present time has to be documented so that future reference is available (Goetsch, 2003, pp.422). The process related to improvement needs a vision and this helps. The improvement effort in this way is more channelized; the goals are clear and easily achieved. The leaders which would be the owners or the management need to support the process. The top to down approach should be followed. The main agenda should be that all people involved be it top management or the lowest ranks should have clarity relate to aims and objectives as it will affect all. The level of confidence as well as communication ability is critical for this process to be successful. The final outcome would also be high quality. The SWOT analysis for Hyundai Motor Company is as follows Strengths: Pricing Quality Warranties Availability/distribution channels Weaknesses: Questionable branding Depreciation/trade in value Lack of consumer information: especially on their web site Opportunities: Green alternatives and hybrid cars Technological innovations/research/development of same Better integration of web site for customer product information and company profile information Threats: Political Trade Socio-economical Other regulatory constraints: especially those linked with environmental issuesand manufacturing. Change Management Change stands at the heart of any leadership. Organizational culture is one of many situational variables that have emerged as being pivotal while understanding the success of any leaders efforts with regard to implementing any change initiatives. In this sternly shark eat shark business world, the main aim of most of the firms is to establish distinctive and unique capabilities towards gaining a competitive advantage in the marketplace while utilizing the most of their core competencies. So it is important to understand what competencies are. Competencies refer to the fundamental knowledge owned by the firm i.e., knowledge, know-how, experience, innovation and unique information, and to be specific they are not confined to functional domains only but cut across the firm and its organizational boundaries (Lowson, 2002). In todays world, being it is only the degree of dissimilarity from the beaten path that provides one with the cutting edge. If the aim is to deliver a unique mix of t he values, a gamut of activities need to adopted keeping in mind the present market situation. Thus, one gets the capability which enables him to execute specific activities, at the same instance being able to work meaningfully between the activities and therefore extending the cutting edge).The all-important exercise now, would remain the development of a unique path ahead, utilizing all resources at ones service, yet mindful of the environmental realities. It would be through the above mentioned unique capabilities that the outfit would better its chances of maintaining the competitive advantage. The concept of competition everywhere, including the domestic as well as international scenario has crossed into another realm of its own. The emphasis on performance and the quality of product has surpassed the impediments that once existed to control the price of the product. Hence, vigorous product management during the development process itself forms the backbone of the competitive e dge accrued. Organizational culture governs the degree of success that can be brought about by any attempt to effect organizational behaviour.The very Conceptual model of change as well as the inherent process models adopted for organizational change have undergone a change thereby highlighting the importance of culture in enabling entrepreneurs/ leaders in their attempts to transform the norms, attitudes, and general disposition of the employees emulating them in their outfits. Gagliardis model of 1986 (Tim, 2003, pp.53)for cultural change explains the varying effects of change which are incremental, apparent and path breaking when compared with the prevailing norms of culture. Attempts to effect change, when exercised, keeping in mind the abovementioned strategic outlook effectively extend, reinforce or even at times, weaken existing presumptions and standards caught up by the steps to initiate the change. The bulwark of methodologies and market tactics are always the cultural aspects. It is these aspects that decide if leaders are to anticipate cultural adaptation, struggle or maybe even alterations as a consequence of their authority. Gagliardis Model also brings to ones notice the overbearing importance for any leader to bear in mind, the intense cultural effects stemming out of the techniques utilized by them to bring about change initiatives thereby effecting the organizational surroundings. Hyundai Motor Company enjoys the status of the largest auto-manufacturing set up in South Korea as well as the distinction of being considered the fifth largest industry on the globe. It boasts of a capacity to manufacture 1.6 million units per annum. The strength of the Hyundai fraternity lies in their ability to lay stress at every level of its production management system, thereby catapulting them to their present day status as also enabling the coveted competitive edge that forms any mediocre companys yearning (Worldwide Hyundai, 2008). The production house has grown to spread its branches the world over, particularly Europe, Asia the US. Wecan thus safely assume that the key ingredients which enable a worldwide leader the cutting edge are as follows:- Explain, all that the company achieved which would lead to the attrition, gradual dissipation and at a later stage even complete failure of the competitive advantage that it enjoyed? Explain, all that the company needs to undertake in order to enable it to sustain role in providing it the competitive advantage? In any company, it is the management which is solely accountable for ensuring that the former stays ahead of its competitors in the arena. Had it not been the competent and effective, the company would probably have lost its competitive edge advantage (the companys standing in the market environment relative to other (competitor) companies. In keeping with all other leading industries, Hyundai too enjoys a huge competitive advantage when compared to its rival auto-manufacturing companies the world over. Also, Hyundai even risks suffering the erosion or eventual loss of its competitive advantage and position if the management will not be able to adapt to the changing market and customer need, specifically in car industries. The society also needs to be looked at and their needs to be met. This would pave the road for the organization to become a market leader. The pricing factor also needs to be constantly kept in mind as the consumers are very price sensitive. This would work to their advantage as the cars would become more affordable as well as quality cars. The models related to the industrial growth in order to be consistent as well as have the advantage over the competition need to be flexible and innovative so that it can deal with the risks which the internal and the external environment would make the organization face. Hyundai as a company also needs to do that by making its set up strong internally as well as externally so that it has an edge over the competition and their growth is steady and consistent. This is also affected by the fact that Hyundai has a global presence and also needs to grow through establishment of its manufacturing facilities all over the world. The departments which nee d to look into the development of the company needs to follow tiered research and utilize innovative ways and plans so that the high as well lower management is motivated for success as well as to give Hyundai the competitive edge over the competition. The growth in the present economy and market demands products which are new and improved and the costs as well as the market price is low. The Hyundai management and mangers need to be open to change as well as need to be creative in the process so that it can be turned for the benefit of the company. Hyundai has identified the sources for gaining the edge over the competition by making their core competencies strong and cutting edge so that no one can touch them. The position which the company enjoys as being the market leader needs to be sustained and consistent so that the long term goals are achieved and profitability grows. This is so at all levels in the organization. The merger which happened between two companies Hyundai and K ia is a very clear example of this (Orcullo, 2007, pp.48). The growth in the Korean automobile industry was consistent in terms of sales up to 1996 but the next year saw a major slump in the economy which had a very negative impact on the company and its growth. They managed and tackled this slump by expanding their facilities for production. During this time Kia went bankrupt. Kia as well as Asia Motors was merged with Hyundai. This also resulted in major reshuffling happening within the top management and was in accordance with the plan made by the owners for its success. Majority of the auto companies were restructuring their units as well as letting go a lot of their employees to reduce costs and handle this down turn. Many companies which were multinationals were acquiring the manufacturers for auto parts while this was going on. This process related to the auto industry in Korea led to the market becoming very confrontational. This was the case as the parties involved were affected by all the decisions which were taken. They were the labour related unions, government and its agencies as well as the company management. The merger in question had a very synergizing effect on the performance of the business of the automobile manufacturers. The group on the whole managed to save costs as all operations were integrated which was important for success. As the auto parts which had to be used were being shared it led to synergy happening on the front of the suppliers too. The design and development as well as Research departments also showed an effect on the costs as the platforms on which each operation was being carried out was integrated as a result of the merger. The power train development and the sharing of parts helped both the companies in getting down their costs and for their profitability to go up. Alignm ent of all the business functions was required as smooth integration was very important for future smooth operations. The group which would be formed as a result of this merger would possess specializations which were coordinated and would work towards cost saving and profitability improvement. The style of management at Hyundai was aggressive and the employee involvement practice for working followed by Kia was creative. Both of these coming together resulted in an organization culture which is competitive as well as successful be it while the economic slow down had happened or even later after recovery. The upturn which happened 1999 to 2000 helped in the recovery process of the two automobile manufacturers. Kia as a result of the merger came back from the dead and its revival was drastic and dramatic. Some of Hyundais strengths helped in this recovery process for Kia. These strengths were the auto part sharing as well as the utilization of the facilities for production as well as the technology. Kia with the help from Hyundai increased their sales as well as the share in the market and started to make steady performance in terms of finance and started following Hyundais trends. All these positives from the Kia Hyundai merger released them from the clutches of the courts in 2000. Now it was time to look at the long term growth plans and policies. The labour unions in the automobile industry serve as a major threat for them. They can resist any efforts related to integration of business and specialization of techniques. It is not that the labour unions have been sitting quietly. They have been working towards greatly affecting the procedure and plans for the restructuring of the business as well as employee management. The unions of Hyundai and Kia have taken this configuration of the business very positively and have not posed any opposition on the resource sourcing, research and development which is needed to be carried out keeping the uncertain future in m ind. In this merger group the main concern is how to keep the union positive and cooperative so that they are less resistant to any change or decision which is critical for business. In 2001 the group made public their plans world towards becoming the 5th automobile group which is global. This was to be done by 210. The auto group which is Korean came into the industry late and thus it still has to work towards improving the image of the brand. In the domestic market both companies have only complimented each other and the only thing is that the growth is intense. In the mid of 1999 the market in Korea related to automobiles opened their gates to foreign makers too. This led to major competition increased and the boundaries were broken making the auto industry one. Now it was survival of the fittest. Hyundai a company in order to survive had to enhance their ability technologically with the help of their research and development department and also their process for manufacturing. T he products needed to better quality than the competition as well more reliable. There is a dire need to constantly to make the brand seem superior and this can be done only with products that appeal to majority customers an they are chosen over the competitions products. The two companies need to work towards improving the parts supplied and the finance related abilities which is at this point of time quite low as compared to other advanced countries of the world. The positioning strategy is the next agenda which should be in the mind of the companies Kia and Hyundai. There needs to some kind of plan of how all the products from both the companies would be placed in the market as well pricing procedure needs to be clear. The strategy which they have been following is to position duplicates of each others car models. The management which is at a senior level is insistent on retaining their business related composition as on date and not have it changes courtesy the merger. This cove rs all car models. The long term agenda is not the same. The plan would be that the sectors related to various aspects of business be divided and the both the automobile manufacturers would work towards positioning their products in various demand markets. This is the way of working followed by auto giants like General Motors. Rather than working towards coming up with a new framework for business with respect to sales as well as manufacturing the managements concern shifted to the fact that how would they get over the vested interest of the senior management in the current business policies and practices of their two organizations separately rather than working as one entity. Recommendations for Growth The economy needs to be more balanced as well needs to have a direction (Gaten, 2002, pp.1). This would be true in many areas like distribution of health care products, standards which are set with regard to environment and labour as well as trade. The Global Reporting Initiative of 1997 worked towards a system for accounting which would help to calculate the level of sustenance with the data which is social, economic and environmental. This would make the measurement system one for all aspects. The risks which are taken need to be more educated ones and the importance of the same has been understood. The vision, mission as well as the plan to achieve the companies objectives needs to be in sync with the objectives which have been set up in the long term agenda of the organization. The strategy needs to be absolutely clear and values needs to be clearly defined. The values of the organization should be aligned with that of the stakeholders. The alignment would happen by integration o f the process, procedures as well as policies and with that success is inevitable. The objectives which are long term would be better achieved if they match the vision and the purpose of the individuals involved. The decision making process needs to be consistent and would also work towards achievement of personal ambitions too along with the organizations. Talks should always be there between the management and the employees of Hyundai so that every concern and want is out in the open and the learning is collaborated and systems are there so that information sharing happens. The requirement for Hyundai was to give some power to the employees in terms of the decisions that are made. The change management would be successful as the management would give the direction as well as provide the vision and also to top that have the authority to implement the change. Management would have to provide the push factor for the change process and this would also have an effect on the goals which are short term in Hyundai which would be aspects like building of teams, sharing of visions and defining the responsibilities amongst the employees. The work of Hyundai would be to stick to the objectives of the management and the leadership and would move in the right direction for a very positive future. The strategies which would be set up to achieved the goals which are long term as well as short terms would be based on the factors which have been discussed above. As per Ashkenas if there was a want on the part of the management to get improvement in the performance of the people of the organization the best way would be to make and plan the procedures for attainment of their goals which were to be achieved in less than an year i.e. short term goals. So the goals of Hyundai falling in this category are- Each employees being responsible enough to be answerable for their own actions. This would be empowering for the individuals and would also push them to work as team. The labour which they hire would be the best in the industry by being the most learned in terms of technology and specialization in their field. Fight to produce products which are the best in the market as well as made following the best procedure but the cost of production being as low as possible. The feedback which is received form the short term objectives would help the organization to come up with the objectives which are long

Coca Cola/Pepsico Strategy Analysis

16/10/2012 Saxion University of Applied Science Module International Business Plan – Mr. J. Oude Rengerink IBMS Project 6 – Gr. C1 Analysis International Strategy; Part 1 – Second Version Tim Herbers (153139) Angelika Kuhn (147613) Sebastiaan Prins (112381) Luc Zijlmans (149689) Saxion University of Applied Science Module International Business Plan – Mr. J. Oude Rengerink IBMS Project 6 – Gr. C1 Analysis International Strategy; Part 1 – Second Version Tim Herbers (153139) Angelika Kuhn (147613) Sebastiaan Prins (112381) Luc Zijlmans (149689) | Coca Cola & Pepsi| Analysis International Strategy|Coca Cola & Pepsi| Analysis International Strategy| Index 1. Analysis International Strategy3 2. The Coca-Cola Company & PepsiCo4 3. Marketing5 3. 1 Marketing mix of Coca Cola5 3. 2 Marketing mix of Pepsi7 3. 3 Brand differentiation8 3. 4 Coca-Cola & Pepsi Worldwide8 4. Management9 4. 1 Management Coca-Cola9 4. 2 Management PepsiCo11 4. 3 Management co mpared12 5. Financial Position12 5. 1 Profitability13 5. 2 Liquidity14 5. 3 Solvency15 6. Production16 6. 1 Comparison Production17 7. Research and Development18 7. 1 Research and Development & Sustainability20 8. In Overall21 9. Coca-Cola Company or PepsiCo21 0. References22 1. Analysis International Strategy Before it could be determined whether the Coca-Cola Company or PepsiCo is most suitable for entering a new market, a thorough examination and evaluation of their current (internal) strategy has be performed. Several variables will be researched upon, including Human Resource Management, sustainability and ethics, management aspects (financial part of the business plan), and strategic international marketing position. During this first part we will be answering the question ‘What are the strengths and weaknesses of the companies Coca-Cola and PepsiCo? . 2. The Coca-Cola Company & PepsiCo The Coca-Cola Company Coca-Cola is a carbonated soft drink that is sold in stores, re staurants, and vending machines available in more than 200 countries throughout the world. Nowadays it is rather difficult to think of a country where it is not available. With a portfolio of more than 3,500 beverages, from diet and regular sparkling beverages to still beverages such as 100 per cent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages, their variety spans the globe.The company has 146,200 employees around the world and operates its business for 126 years respectively. Its headquarters is located in Atlanta, USA. In financial circles, Coca-Cola has been one of the strongest and most reliable trading stocks, showing a steady return in all of its years of existence but one. However, Coca Colas market share has slipped, but still dominates in much of Europe and South America. PepsiCo The carbonated soft drink producer sells its products in nearly 200 countries throughout the world. Their product assortment i ncludes 22 brands that each generate more than $1 billion each in annual retail sales.The company employs 297,000 people around the globe and is twice as much as that of Coca Cola and sells its products under the name of Pepsi Cola since 1898. Its headquarters is located in Purchase, USA. Pepsi mostly dominates in Asian markets as compared to Coca Cola. In financial circles, Pepsi is known to provide a steady growth when it comes to sales revenue as well as profit. Their sales revenue in 2011 is one third higher than that of 2008 and a disruption in that trend is not expected by sales forecasts. 3. Marketing 3. 1 Marketing mix of Coca Cola ProductThe Coca-Cola Company’s products consist of beverage concentrates and syrups, with the main product being the finished beverages and can be seen as both business and consumer products. The type of consumer product the Coca-Cola Company creates is convenience product. Convenience products normally require a wide distribution in order to sell sufficient quantities to meet profit goals In addition, the Coca-Cola Company often pays a certain amount to retail stores to resell their product. Therefore the Coca-Cola Company products can be considered a business product.The Coca-Cola Company has a fairly large product mix which contains about 400 brands, including diet and light beverages, waters, juice and juice drinks, teas, coffees, energy, and sports drinks. Since 1960 they have increased their product mix continuously. Place Coca Cola is sold in stores, restaurants, and vending machines in more than 200 countries. The headquarter is located in Atlanta, Georgia. Promotion Advertising According to Gary Armstrong and Philip Kotler, â€Å"Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Coca-Cola has used advertising to build an image for its company. Here are some of the types of advertising that Coca-Cola uses: * Television commercial; ga in good marketing coverage by appealing to consumer's senses. * Magazines; geographically and demographically select consumers that it wants to target. * Outdoor advertising; strategic placements achieve high repeat exposure. * Internet; allows customers to become interactive through various games, contests, shopping. Public Relations Coca-Cola handles public relations by including a press centre on its website.This section of the website allows consumers to view press releases, executive speeches, and statements made by the company regarding current information. In the statements, Coca-Cola can address law suits, rumours, stories, new products, and activities. Personal Selling Coca-Cola has many salespeople, who are individuals representing the company to communicate, sell, service, and build relationships with customers. These individuals form close relationships with the customers and visit them not unusual many times per week. Sales promotionCoca-Cola often runs sales with store s to quickly increase sales. Coke gives its product to the retailer for a lower price, and in-turn the retailer sells the product on sale. To advertise for these sales, the retailer generally runs an ad in their store sales circular at attract consumers. Direct Marketing Coca-Cola uses direct marketing in many ways. First, the company partners with various restaurants, movie theatres, etc. to carry its product. This way, when a customer orders a drink, the only brand they are offered is Coca-Cola, which forces them to buy a drink from that brand.By doing this, Coke forces out other competition, and keeps the restaurants, or other businesses, purchasing their product over and over again. Price Average price in the capitals for one can 350ml (2011): Greece, Spain, Belgium: $1. 74 Switzerland:$1. 72 United Kingdom:$1. 54 United States:$0. 79 Russia:$1. 07 India:$0. 36 China:$0. 26 3. 2 Marketing mix of Pepsi Product The Pepsi-Cola drink contains basic ingredients found in most other si milar drinks including carbonated water, high fructose corn syrup, sugar, colourings, phosphoric acid, caffeine, citric acid and natural flavours.The caffeine free Pepsi-Cola contains the same ingredients but no caffeine. Pepsi’s most popular product range include Diet Pepsi, Gatorade, Mountain Dew, Thirst Quencher, Tropicana, Aquafina Bottled Water, Sierra Mist, Fritos Corn chips, Cheetos, Ruffles Potato Chips, Lays Potato Chips, Tostitos, Doritos. Place Pepsi is sold in stores, restaurants, and vending machines in nearly 200 countries. The headquarter is located in Purchase, New York. Promotion Advertising Likewise Pepsi has used advertising to build an image for its company. * Television commercial; gain good marketing coverage by appealing to consumer's senses. Magazines; geographically and demographically select consumers that it wants to target. * Outdoor advertising; strategic placements achieve high repeat exposure. * Internet; allows customers to become interactive t hrough various games, contests, shopping. Public Relations Pepsi gets involved in Public Relations via social networks like Facebook. Community services as well as social campaigns are addressed on the company’s internet page. Personal Selling In order to keep up with the core competition, Pepsi’s salespeople are inevitable building similar relationships with customers like Coca Cola.Sales promotion Sales promotion is similar to that of Coca Cola. Direct Marketing The direct marketing strategy is equally to that of Coca Cola. Price Average price in the capitals for one can 350ml (2011): United Kingdom:$0. 38 United States:$0. 79 Canada:$1. 02 Egypt:$0. 66 India:$0. 12 China:$0. 10 3. 3 Brand differentiation Brand differentiation takes place after understanding what the customers wants and therefore meeting the core need. Pepsi and Coca-Cola are popular black soft drinks and mostly contain sugar and water with a slightly difference in taste.Although the ad campaigns run by both companies would have people think otherwise, the soft drink similarities are striking. A study found that 80 per cent of people cannot differentiate a sample of Coca-Cola (NYSE: KO) from a sample of Pepsi. In essence, it does not matter how the DNA of the product looks like, but how it is presented. On the one hand there is Coca-Cola, the secret inventor of cola, the original product since the establishment on the market. Pepsi, on the other hand, was born a few years after Coke and stands for something new. It markets its product being committed for a new generation.Pepsi does have a slight advantage over Coke in diversification. Pepsi has snack food brands such as Frito-Lay and Quaker. They also own the brands that make beverages such as Gatorade, Tropicana and Naked Juices. While Coke hasn’t tapped the snack food market, they do have some beverage diversification. Dasani bottled water, PowerAde and Minute Maid juices are all part of Coca-Cola. 3. 4 Coca-Cola & Pep si Worldwide The Coca-Cola Company and PepsiCo both have very successful drinks. Although Coca-Cola is greater than PepsiCo as a company as well as the amount of brands/drinks, their drinks are quite similar and therefore comparable.They also have a wide range of promotional activities. They use practically all communication mediums there are and invest huge amounts in building customer relationships. Coca Cola and Pepsi are sold in around the 200 countries worldwide. Both headquarters are located in the United Stated. The price of Coca Cola is more expensive than Pepsi in most countries. Since most people cannot taste the difference between the two, the difference in price lies with that Coca Cola is more known and wins from Pepsi on image. It is seen as a slightly ‘better' brand. . Management 4. 1 Management Coca-Cola Management Every company needs a strategy, to ensure that everything goes well within the firm. Strategic management affirms the company being well organized a nd no detail being left out. It is essential to make sure that the company is doing well internally. Business start up Coca-Cola was first introduced by John Smyth Pemberton. The distribution took place by carrying the product in a jig down the street to Jacob’s Pharmacy, where people were buying the drink for five cents at the soda foundation. StrategyNowadays, the Coca-Cola Company operates in more than 200 countries and markets more than 500 brands. Hereunder, four of the world’s top five soft drinks brands, which explains the enormous success and makes them to the world’s largest beverage company. The unique brand is consistently offering products of the highest quality and delivers creative and innovative marketing programs worldwide. The global availability and ongoing innovation, continually provides its consumers with new product offerings, with each country having its own unique needs and requirements.Mission * To refresh the world†¦ * To inspire m oments of optimism and happiness†¦ * To create value and make a difference. | Vision * People: Be a great place to work where people are inspired to be the best they can be. * Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. * Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. * Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. * Productivity: Be a highly effective, lean and fast-moving organization. | Values * Leadership: The courage to shape a better future * Collaboration: Leverage collective genius * Integrity: Be real * Accountability: If it is to be, it's up to me * Passion: Committed in heart and mind * Diversity: As inclusive as our brands * Quality: What we do, we do well Structu re The Coca-Cola’s primary business consists of manufacturing and selling beverages.The company sells their concentrates and syrups to bottling partners, which have the authorization of manufacturing, distribution and selling branded products to consumers around the globe with supreme quality and service. The relationship with its bottlers worldwide is a key source of strength and is referring to ‘the Coca-Cola system’. Culture The organizational culture describes the way a business does things, including patterns of behaviour and relationships. Therefore, the employees of the Coca-Cola Company are the most important asset, highlighting teamwork and empowerment.Not only employees, but also customers and bottling partners feel valued in this friendly, trustful and innovative culture and their motivation provides the engine that drives the Company’s growth. Based on relationships, The Coca-Cola Company provides a number of open communication channels as mont hly leadership team meetings and employee team briefing sessions and surveys to monitor employee views and feelings. 4. 2 Management PepsiCo Business start up Pepsi was first introduced as ‘Brad’s Drink’ by Caleb Bradham in 1893. The drink was produced and sold in his drugstore. StrategyThe company operates in more than 200 countries. PepsiCo has competitive advantage in the beverage industry  because of big brands, proven innovation and differentiated products. Their strong brand, socially responsible employees and corporate beliefs continues its stance as one of the most powerful companies in the world. Mission Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate.And in everything we do, we strive for honesty, fairness and integrity. Vision â€Å"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today. † Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. Goals and Values Ensure high levels of associate engagement and satisfaction compared with other Fortune 500 companies * Foster diversity and inclusion by developing a workforce that reflects local communities * Encourage our associates to lead healthier lives by offering workplace wellness programs globally * Ensure a safe workplace by continuing to reduce lost time injury rates, while striving to improve other occupational health and safety metrics through best practices * Support ethical and legal compliance through annual training in our code of conduct, whic h outlines PepsiCo's unwavering commitment to its human rights policy, including treating every associate with dignity and respect Structure This adaptive organization is continuously seeking for improvement and keeping new ideas in the marketplace. PepsiCo has a decentralized organizational structure. Operational decisions are being made within the separate business units while being governed by policies at the corporate level. Culture PepsiCo offers a culture that encourages initiative, risk taking and access to decision makers.Employees have superior opportunities to pursue their goals. The company considers their culture as fairly uniform. â€Å"Extremely competitive and very focused†. Trust, respect, fairness and teamwork are being valued. Managers must be able to attract, retain and develop talents in order to achieve efficient and effective results, which are significant for PepsiCo’s expectations. Benefits as bountiful retirement packages, tuition reimbursement and legal assistance programs are being praised by their employees. 4. 3 Management compared Each company tries to outdo each other and tries to produce the best product. The battle of the two companies gives life to the industry.Both companies have a long history and have been tried and tested. The two are showing social responsibility in the community and have invested heavily in recycling programs. However, The Coca Cola Company is the market leader. It has built internal and external structures to support the delivery of its business goals. It has the best structure of supporting growth, allowing attention to local requirements and building on a clear strategic direction from the centre at the same time. To build its growth on, the company has a firm foundation of relationships and open communication channels. 5. Financial Position What is the financial position of PepsiCo?The last year’s PepsiCo has been a very financially healthy company. But like many companies also P epsiCo suffered a bit from the financial crisis. If we first look at the income statement of PepsiCo we can see that PepsiCo is now recovering from the blow they took from the financial crisis and are increasing their revenue and profits. They are recovering by spending more money on their marketing in their home market and also doing more investments then the years before. In 2009 investments were only 2. 1 billion and in 2011 their 3. 4 billion. This strategy is helping them to get back on track. We can see this strategy back in their cash flow statement and in their balance sheet.What is the financial position of Coca-Cola Company? The Coca-Cola Company has always been market leader with their coke and has always been a very strong company, not just financially but also their brand name is very strong. Even though they have a very strong brand name they took a blow in 2008 with the economic crisis and had to cut their costs and investments substantially. In 2011 their managed to get their revenue up by 11 billion but their profit stayed the same as in 2010. This was because they started to invest more; this is something that the competitor PepsiCo did as well. So both companies are recovering and doing well. 5. 1 Profitability PepsiCo Inc. , profitability ratios   | Dec 31, 2011| Dec 25, 2010| Dec 26, 2009| Dec 27, 2008| Dec 29, 2007|   | Return on Sales| | Gross profit margin| 52. 49%| 54. 05%| 53. 51%| 52. 95%| 54. 30%| | Operating profit margin| 14. 48%| 14. 41%| 18. 61%| 16. 09%| 18. 19%| | Net profit margin| 9. 69%| 10. 93%| 13. 75%| 11. 89%| 14. 33%|   | Return on Investment| | Return on equity (ROE)| 31. 29%| 29. 86%| 35. 38%| 42. 47%| 32. 83%| | Return on assets| 8. 84%| 9. 27%| 14. 92%| 14. 29%| 16. 34%| Coca-Cola Co. , profitability ratios |   | Dec 31, 2011| Dec 31, 2010| Dec 31, 2009| Dec 31, 2008| Dec 31, 2007|   | Return on Sales| | Gross profit margin| 60. 86%| 63. 86%| 64. 22%| 64. 39%| 63. 4%| | Operating profit margin| 21. 82%| 2 4. 06%| 26. 56%| 26. 44%| 25. 13%| | Net profit margin| 18. 42%| 33. 63%| 22. 02%| 18. 18%| 20. 73%|   | Return on Investment| | Return on equity (ROE)| 27. 10%| 38. 09%| 27. 52%| 28. 37%| 27. 51%| | Return on assets (ROA)| 10. 72%| 16. 19%| 14. 02%| 14. 33%| 13. 82%| In the table’s you can see the most important profitability ratios for PepsiCo and Coca-Cola Company. The gross profit margin indicates the percentage of revenue that is used to cover operating and other expenses. For the last years Coca-Cola always had the better profit margin ratio because they do not have such a diverse product range as PepsiCo does.PepsiCo also works in other markets like cereal and potato chips where the gross profit margins are usually lower. This accounts for all of the return on sales ratios. The return on investments are not very different for both companies but PepsiCo did some major investments in equity the last few years and they still managed a very high return on equity which a good result. Both companies have good returns on their investments. We can clearly see that Coca-Cola has a higher profitability; a big difference is the net profit margin where they score much better then PepsiCo. But both companies are doing very well profitability wise. 5. 2 Liquidity PepsiCo Inc. , liquidity ratios   | Dec 31, 2011| Dec 25, 2010| Dec 26, 2009| Dec 27, 2008| Dec 29, 2007| | Current ratio| 0. 96| 1. 11| 1. 44| 1. 23| 1. 31| | Quick ratio| 0. 62| 0. 80| 1. 00| 0. 79| 0. 89| | Cash ratio| 0. 24| 0. 40| 0. 47| 0. 26| 0. 32| Coca-Cola Co. , liquidity ratios |   | Dec 31, 2011| Dec 31, 2010| Dec 31, 2009| Dec 31, 2008| Dec 31, 2007| | Current ratio| 1. 05| 1. 17| 1. 28| 0. 94| 0. 92| | Quick ratio| 0. 78| 0. 85| 0. 95| 0. 62| 0. 58| | Cash ratio| 0. 58| 0. 61| 0. 67| 0. 38| 0. 33| The current ratio of PepsiCo is a shock because looking at this number they have serious liquidity problem. It took a major blow from the economic crisis looking at numbers from 2007 and 2008 when the current ratios were at a much more healthy level.Also Coca-Cola’s current ratio’s is much lower than it used to be but when we look at the current ratio in 2008 and 2007 the ratio was lower than it is now so it might be that this is not an unusual position to be in for Coca-Cola . The quick ratio shows if a company can currently pay back their current liabilities. Both companies are not able to do this but for big companies like Coca-Cola and PepsiCo this is a normal quick ratio and they do not have something to worry about. The Cash ratio of PepsiCo is much lower than Coca-Cola this might also be the cause for their low current ratio they do not have a lot of cash on their bank but they use it mostly for investments. Overall the liquidity position of Coca-Cola is better and Pepsi might need to reconsider to improve their liquidity position. 5. 3 SolvencyPepsiCo Inc. , debt and solvency ratios |   | Dec 31, 2011| Dec 25, 2010| Dec 26, 2009| Dec 27, 2008 | Dec 29, 2007| | Debt to equity| 1. 30| 1. 18| 0. 47| 0. 68| 0. 24| | Debt to capital| 0. 57| 0. 54| 0. 32| 0. 40| 0. 20| | Interest coverage| 11. 32| 10. 12| 21. 35| 22. 41| 35. 12| Coca-Cola Co. , debt and solvency ratios |   | Dec 31, 2011| Dec 31, 2010| Dec 31, 2009| Dec 31, 2008| Dec 31, 2007| | Debt to equity| 0. 90| 0. 76| 0. 48| 0. 45| 0. 43| | Debt to capital| 0. 47| 0. 43| 0. 32| 0. 31| 0. 30| | Interest coverage| 28. 43| 20. 43| 26. 20| 18. 14| 18. 37| PepsiCo finances their company more with equity and capital than Coca-Cola Company does.You can see this when you look at the debt to equity and debt to capital ratio which are much higher in the case of PepsiCo especially the debt to equity this is because of the big investments in equity that PepsiCo did this year and last year. Even though the Coca-Cola Company is financed more by loans, this is not a problem for Coca-Cola because their interest coverage ratio is very high and their profits have been an in stable grow th as where PepsiCo has a much lower interest coverage ratio which is declining every year since the start of the economic crisis. 6. Production Intangible resources Coca-Cola is the absolute leader in the carbonated soft-drink market and is recognised as the most valuable brand worldwide. The company? greatest strengths are in its intangible resources. Because of the great reputation and image, they differentiate themselves from competitors like Pepsi. Coca-Cola can be bought in almost every country worldwide and is available in practically all snack shops, supermarkets, train stations, and so on. This success exists because the huge investments in marketing and Coca-Cola's distribution systems. Customers of Coca-Cola are generally very loyal, more loyal than the Pepsi customers. Coca-Cola also gains competitive advantage by excelling in their brand image (strategy). They invest a lot in marketing and brand awareness, (Coca-Cola is a lifestyle†).Another competitive advantage is the 400 licenses and patents on different formulas (ingredients Coca-Cola) and other drinks and brands which fall under the Coca-Cola Company. PepsiCo is also operating on a global basis. The competition between the two is heavy and just like Coca-Cola, Pepsi drinks are available in almost every nation, in almost every food and drink store. Although fulfilling a similar position as Coca-Cola in their market, PepsiCo has a rough opponent with Coca-Cola. The past several years, PepsiCo is not as profitable as before and has more and more trouble with competing with Coca-Cola, also because of the high investments of Coca-Cola in marketing. Therefore, their brand equity is developing negatively. Also PepsiCo’s intellectual property is great.Coca-Cola is more seen as a phenomena than a brand, and this is a competitive advantage for PepsiCo as well. Many establishments over the world offer Cola, and provide customers with PepsiCo mainly because this is less expensive. As already mentioned earlier, most people cannot distinguish Coca-Cola from PepsiCo, therefore gains PepsiCo competitive advantage at the expense of Coca-Cola. Human Capital The whole Coca-Cola Company has over 140,000 employees worldwide. Remarkable is that PepsiCo around the 30% greater workforce has, although their market share is considerably smaller. Unless the efficiency rate per employee of PepsiCo is much higher than that of Coca-Cola, this causes the company to have very large expenses in labour terms.To safeguard future long-term objectives, the companies both choose to keep a diverse workforce. Employees get relatively much responsibility (empowerment) and are encouraged, inspired and challenged to learn, be innovative, be original, and to promote themselves within the company. This creates extra value for both companies because employees are more loyal. Physical capital The physical capital of Coca-Cola is huge. The Company owns over many facilities in more than 200 countries worl dwide where the bottling, canning, syrup manufacturing, and administrative aspects are being dealt with. Only the bottlers where the products are manufactured and distributed mounts up to 275 facilities over the world.All those facilities are brought under five geographic operating segments (North America, Africa, Asia, Eurasia and the Middle East, and Latin America) and one corporate segment. The bottling partners are local companies, totally integrated and operating in line with their local markets. Also PepsiCo’s distribution system covers a wide range of certified bottlers, selling products in over 200 countries on six continents to businesses and institutions, including retail chains, supermarkets, restaurants, small neighbourhood grocers, sports and entertainment venues, schools and colleges, etc. 6. 1 Comparison Production These good resources ensure overall quality, flexibility and responsiveness in respect to local markets.They are integrated in their market worldwid e with continuous supply. Brand image and human capital are aspects which safeguards profitable future prospects with a sustainable competitive advantage. Both Coca-Cola and Pepsi have a massive amount of employees working for the company worldwide. This is also necessary because the employees contribute for a large part to business successes. Remarkable is the 30% greater workforce of PepsiCo. This is an alarming situation because the expenses of labour is large. Because they are both very successful and such immense companies, brand image, presence in geographical markets, distribution systems are all well-organised and difficult to compare.The end results of Coca-Cola in financial-, as well as non-financial aspect are better than those of PepsiCo on almost every terrain. 7. Research and Development How sustainable is PepsiCo? (Continuous improvement/New flavours) PepsiCo is a company with a wide variety of products and in all their market segments they are an A brand. When it com es to research and development you can see that PepsiCo is one of the best. They have multiple research and development facilities especially in the United States with many highly skilled scientists working there every day trying out new flavours and new products. The company even has its own university to train their staff.At this university which was opened in 2011 the scientist of PepsiCo receive training about 8 main items which are: packaging, Nutrition, Food Safety and Regulatory, Ingredient Application Science, Human Research and Science, Experience Design, Product Development and Process Engineering. They create new flavours every day and they launch a new flavour a couple times a year. They carefully create their flavours for specific markets so they meet the exact needs of the customers in that country. Another thing that PepsiCo strives to do is continuously improve their existing product and their existing processes. They do this for instance by giving training to their employees and giving their mangers goals to make sure they improve every year. How sustainable is the Coca-Cola Company? Continuous improvement/New flavours) Coca-Cola might not have as many R;D facilities as PepsiCo but their output of new products and new flavours is bigger than PepsiCo. This mostly caused by the fact that the Brand Coca-Cola is much more than just a brand. They also sell T-shirts and other product of their brand that they develop. Things like vending machines and packaging are things that Coca-Cola focuses on with their R;D while PepsiCo is more focussed on their product range. Coca-Cola is so settled as a brand that the most of their R;D is almost marketing. Like new cloth lines and new packaging for their products and off course new vending machines which will not only benefits the customers but also carries a message.Of course Coca-Cola Company also develops new flavours and new product they do this the same way as PepsiCo they look at the specific needs of th e inhabitants of a country and create a new flavour or product based on those needs. Coca-Cola also PepsiCo strives to do is continuously improve their existing product and their existing processes. They do this for instance by giving training to their employees and giving their mangers goals to make sure they improve every year. Does PepsiCo have a green vision? PepsiCo is fully committed to protecting the earth's natural resources through innovation and the efficient use of land, energy, water and packaging in all our operations.As a global business, they rely on the earth's natural resources. And as they grow, they strive to use only methods and tools that are, socially responsible and economically sound. PepsiCo has multiple categories where they are becoming more and more sustainable, the first category in which they have goals for improvement is water usage. PepsiCo's goal to improve water-use efficiency by 20 per cent per unit of production by 2015 . PepsiCo has already impro ved water-use efficiency by 18. 7 per cent for foods manufacturing, and 17. 8 per cent for beverage manufacturing. These conservation efforts translate to a water savings of nearly 13. 8 billion litres.Also waste management is very important for them. In 2010, PepsiCo generated an estimated 1. 25 million metric tons of solid waste from the manufacturing facilities. Of that total, only 15. 4 per cent was discarded to a landfill, and 84. 6 per cent of waste generated was sent off-site for beneficial use, such as recycling. In the future they are still looking to improve those numbers. Also they keep a close eye on their carbon emission. They have multiple on-going projects in many different countries that will help them decrease their Co2 emission and their effect on the global climate change. They have set 4 worldwide goals for their company. * Reduce carbon intensity in our operations Invest in carbon reduction technologies, including renewable fuel technology and clean development mechanisms * Reduce fugitive emissions * Work with supply-chain partners to reduce their emissions You can see that PepsiCo is company that has very sustainable supply chain and is still trying to improve their sustainability and decrease their emissions. Does the Coca-Cola Company have a green vision? Coca-Cola company is the largest beverage producer in the world and because of that they feel that they have responsibility to make the world a little bit better. They invest a huge amount of money in project on sustainability all over the world.Every year they also create a sustainability report about all they project and what they have achieved that year, also they describe their new project and they set goals for the coming year. In the figure to the right can be seen that they have created a visual concept of the Coca-Cola lifecycle which perfectly shows the way they work on their sustainability. 7. 1 Research and Development & Sustainability Both companies are constantly working on a better position in the market, improve the production and distribution processes, become more sustainable through innovation and participation onto the market. As it comes to sustainability PepsiCo is far behind on Coca-Cola even tough PepsiCo is already a very sustainable company Coca-Cola is really trying to make the world a better place.In total we can see that Coca-Cola is a more sustainable company than PepsiCo, and gives more back to the community. This is also one point why Coca-Cola is a brand which more people adore. 8. In Overall Although the Coca-Cola Company and PepsiCo seem to be quite similar in operating, distributing, production, marketing, and naturally the drinks themselves, they differ from each other on several aspects. Below, a table which gives an overview of important differences between the two competitors. | Strength| Weakness| Coca-Cola| 1. Over 500 brands in product line2. Strong global presence3. Excellent brand recognition4. Industry leader in marke t| 1. Negative publicity2. Supply is restricted3.Low profits in strong areas4. Decline in cash flow| Pepsi| 1. Company Image2. Quality Conscious3. Market Share4. Sponsorships| 1. Decline in taste2. Short term approach3. Weak distribution4. Low consumer knowledge| 9. Coca-Cola Company or PepsiCo We have seen all the strong and the weak points of both companies in all the analyses in this project. We have decided to go on with the Coca-Cola Company. This is mainly because of better financial position that Coca-Cola Company has over PepsiCo. Especially profitability and liquidity wise they have a much better position than PepsiCo does and we think this will be an advantage when we are going to write a business plan.PepsiCo also has a more diverse product mix than Coca-Cola because PepsiCo also has brands in markets like breakfast cereal and potato chips whereas Coco-Cola is only active in markets like soft drinks and sports drink where they have a lot of experience. We think that exper ience that they have because the specialized in drink markets only will be a huge advantage over PepsiCo when they are going to enter a new market. These are the two main differences between the very similar companies that made us decide that Coca-Cola Company is the better option to attack a new market. 10. 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