Primark And Anglo-American Companies’ Business Ethics Instant Essay Help

A summary of business ethics and social responsibility

Business ethics encompass the practices and concerns that should be incorporated into businesses as they strive to improve their market operations. Typically, business operations are geared toward boosting revenues and decreasing expenses. In order to achieve this objective, businesses engage in a variety of techniques, some of which are not compliant with the regulations and laws governing business activities. Ethics entails the observance of established business regulations and norms as organizations attempt to maintain their operations in their operating environment (Shumway, Elenkov & Badgett, 2012). A crucial responsibility of businesses is to protect the environment in which they operate. The environment in this context refers to the community and the resources that support the members' livelihoods. Thus, ethical considerations or practices are frequently equated with corporate social responsibility. Companies frequently face criticism from pressure or interest groups in the economic and socio-environmental spheres when they fail to conform to laws, rules, and expanded duties. The best way to determine the extent of ethical considerations in a company's operations is through an external evaluation of the business model and approaches used by the company (Scott, 2005).

In the course of their operations, a significant number of businesses seek to solve the environmental challenges that exist in their operating environment. Anglo-American and Primark are two such businesses. According to the business ethics model created by Svensson and Wood (2008), the best way to analyze business ethics is by adhering to three crucial components. They consist of expectations, perceptions, and assessments. Five subcomponents interconnect these components. These consist of organizational values, attitudes, and norms, societal expectations, outcomes, reconnection, and society evaluation. Business ethics is an iterative process in and of itself.

Corporate ethics at Primark

Expectations

Primark is a retail division of the larger Associated British Foods. However, the corporation does not deal with food, but rather distributes apparel from manufacturers through its chain of stores. A major portion of ABF's revenues and profits are generated by Primark. The fashion or textile sector is extremely dynamic in terms of fashion changes, which reflect alterations in consumer tastes and preferences. The company collaborates closely with many manufacturers and suppliers to guarantee that it can adapt to industry changes. This indicates that the corporation not only deals directly with clients, but also with a number of third-party suppliers in various locations of the world. Thus, ethical sourcing is one of the most important ethical factors to which the organization must pay attention. This is a result of working with a variety of suppliers in order to meet the needs and expectations of clients, thereby improving the company's well-being. Customers anticipate receiving the most value for their money by receiving the needed level of fashion quality. The corporation must strike a balance between the value of the customer-facing products and services and the value related to the manufacturers and suppliers (The Times 100, n.d.).

Perceptions and assessments

The company's ability to retain favorable relationships with its consumers, manufacturers, and supply chain is indicative of its commitment to ethical business practices. The company's mission encompasses both profitability and sustainability. Sustainability is one of the essential components that direct a company's response to the prevalent social and environmental challenges in its operating environment. It is believed that the incorporation of sustainability into a company's aims and operational goals is a significant aspect of respecting business ethics and enforcing corporate social responsibility. However, it has been apparent in a number of instances when firms simply emphasize sustainability and corporate responsibility in their strategy. The majority of the concerns expressed in the goals and objectives remain unimplemented. This case is irrelevant to Primark's operations. At this juncture, it is necessary to determine the nature of Primark's actual business ethics and corporate social responsibility. Research indicates that Primark has a clearly defined code of behavior that contradicts the company's principles, particularly its sustainability policies. The company works in close proximity to its suppliers and manufacturers to ensure that its products adhere to ethical standards (The Times 100, n.d.).

Primark demonstrates its absolute dedication by providing training to its producers, suppliers, and purchasers on ethical problems surrounding the creation and consumption of its products. This is a significant aspect of the company's ethical considerations. Rarely do most businesses include customers in their activities. Buyers are viewed as a means to a goal, where the aim is profits. The adoption of external and internal auditing of the company's different operations and activities is another crucial aspect of Primark. Ferrell, Fraedrich, and Ferrell (2013) discovered that internal and external audits are crucial for identifying deviations from the desired operational standards. Four significant factors have contributed to the record of compliance with ethical norms of operation. These include ethical sourcing, periodic auditing of the company, the suppliers, and the manufacturers, buyer participation in shaping the quality and standard of products, and adherence to the International Labor Organization's employee management requirements. What the corporation lacks is the implementation of a significant number of corporate social projects to bolster its ethical base (The Times 100, n.d.).

Ethics in Anglo-American business

Expectations

Anglo-American is one of the largest mining companies in the world. The company is international in scope. The company's operations are conducted in Europe and Africa. As a mining firm, issues of sustainable development are crucial to the company's operations. This is due to the fact that a considerable number of corporations involved in the active mining industry have been in the news for violating ethical rules of corporate development, such as the use of child labor and environmental degradation. In addition, there is the question of adopting the laws of the nations in which Anglo-America works. This is due to the fact that minerals are natural resources, and mining corporations must adhere to the laws and governmental regulations that allow them to conduct mining operations. There are also concerns over the care and compensation of people living in mined areas. Unethical business practices have persisted in the mining industry, which begs the question of whether any company functioning in the field can overcome the industry's odds by adopting ethical business practices. Anglo Americana is expected, as a corporation that values corporate ethics, to support external practices that can assist streamline the industry, in addition to ensuring that its internal operations are sustainable (Anglo American, n.d.).

Perceptions and assessments

Anglo-America supports a number of programs that are crucial to fostering an ethical business climate in the mining industry. The corporation has been instrumental in three major sustainability efforts. The United Nations Global Compact, the Global Reporting Initiative, and the Extractive Industries Extraction Initiative are these. These three initiatives are highly significant in influencing the external business environment's sustainability.

Anglo American prioritizes corporate social responsibility, having acknowledged the importance of striking a balance between profit maximization and business sustainability. The organization recognizes and encourages stakeholder input in the formulation and execution of its strategic plans. Ihugba and Osuji (2011) determined that stakeholder participation is a sure way for a firm to address all concerns of business ethics and sustainability that arise in the company's operational environment. The corporation takes the needs and concerns of its employees, government, consumers, communities, and suppliers into account. Consequently, none of the stakeholder organizations have exerted significant pressure on it (Anglo American, n.d.).

It is essential to ensure that the organization pays attention to all relevant stakeholders. Through the monitoring of industry trends and the expression of concerns, stakeholders determine the company's direction. This aids a corporation in maintaining its desired course toward sustainable business objectives. Anglo American has created a ‘Socio-Economic Assessment Toolbox’ in an effort to foster healthy relations with the communities in which it conducts mining operations. This tool assists the company in measuring the influence of its business operations on the company and, more crucially, the community in which it conducts mining operations. The toolkit assists the organization in identifying sustainability issues that cannot be recognized by management and personnel. Using the toolkit, corporate social actions are designed and implemented in response to the identified challenges. Social corporate activities based on the community in which the company operates have a greater impact on the community's standard of living, consequently enhancing the community's commitment to the enterprise. In South Africa, Anglo American supports the efforts of the government to improve the economic empowerment of black communities neglected during the colonial era (Anglo American, n.d.).

The conclusion that can be drawn from the study of business ethics and corporate social responsibility in the two firms is that organizations respond to ethical business practices and sustainability with varied approaches. The industry in which a company operates also influences the nature of ethical challenges. Certain businesses, like as mining, have a poor track record of observing ethical issues. In response, Anglo American has fostered a collaborative atmosphere for addressing ethical challenges in the business world.

References

Anglo America (n.d.). Anglo-American: corporate social responsibility and business ethics. The Times 100. Internet.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Cases and ethical decision-making in business South-Western/Cengage Learning, Mason, Ohio.

Ihugba, B. U., & Osuji, O. K. (2011). Corporate citizenship and stakeholder engagement: ensuring a balanced distribution of power 16(2) Electronic Journal of Business Ethics and Organization Studies, 28-38.

Scott, G. (2005). A strategic answer to the critique of business ethics by Friedman. Business Strategy Journal, 26(6), 55-60.

Shumway, K., Elenkov, D. S., & Badgett, T. F. (2012). A meta-theoretical approach of business organization ethics. 12(5) Review of Business Research, 1-12.

Svensson, G., & Wood, G. (2008). Exemplary business ethics. Journal of Business Ethics, 77(3), 303-322.

The Times one hundred (n.d.). Primark: Providing consumers with ethically sourced garments. The Times 100. Internet.

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Sony Corporation And Mobile Marketing Strategy Instant Essay Help

A Brief Overview Of Sony Corporation's Past

The name Sony was derived by combining "SONUS" with the ancient Latin word for "sound," "SONIC," with "SONNY" denoting diminutive size or a young boy. The name was selected because to its straightforward pronunciation, which is identical in all languages.

The company was created in 1946 under the name Tokyo Telecommunications Engineering corporations, which translates as Tokyo Telecommunications Engineering corporations in English. With an initial investment of 190,000 yen, the firm was founded in Nihombashi, Tokyo, to conduct research and produce telecommunications and measuring equipment.

In February 1947, the company's headquarters were re-established in Shinagawa, Tokyo. In October of the same year, the company successfully marketed power megaphones and began selling them.

In 1958, the corporation was eventually renamed Sony. Akio Morita, one of the company's founders, chose this name "because it had never existed before"1. The business was listed on the Tokyo stock exchange in December of the same year (TSE).

In 1960, Sony Corporation of America (SONAM) was founded. Sony Corporation founded Sony Ericsson Mobile Communications in October 2001. Since its founding, Sonny has undergone various mergers and acquisitions. Sony recently announced, on April 22, 2008, that it will acquire Gracenote, Inc. for 260 million dollars.

Organizational context

The presidents in charge of various categories or groups within Sony Corporation. The organization is led by the Chief Executive Officer (CEO), who is also the chairman, Howard Stringer. He took over for Nobuyuki Idei in June of 2005. These are the additional divisions (groups):

The Entertainment Business Group of Sony Financial Holdings Group is the Game Business Group. Consumer goods Group Semiconductor and Component Group for Sony Ericsson Mobile Communications

International Operations of Sony

Sony Corporation's worldwide overseas operations are conducted by subsidiary corporations. However, Sony America (SONAM) and Sony China are the most vital.

The headquarters of Sony Corporation of America are in New York City. Sony Corporation of America is the U.S. division of Sony with its headquarters in Tokyo. Sony Electronics Inc, Sony Pictures Entertainment Inc, and Sony computer Entertainment America Inc. are Sony's primary U.S. businesses. Additionally, it owns a 50% stake in Sony BMG music entertainment. It is one of the world's largest recording music corporations.

For the fiscal year that concluded in March, Sony's estimated sales in the United States were 18.9 billion dollars. In the final three months of 2007, the company's profits increased by more than 25%. This was due to strong sales of televisions and video games"3 Sony China was founded by Sony corporation in Beijing in October 1996 to manage and oversee Sony's business operations in China.

Sony established the China design Engineering Group for development purposes in 2005.

In China, Sony has seven production facilities and employed around 35,000 employees as of June 2007.

There are further Sony phenomena worthy of mention: It constructed a television factory in Britain worth $254 million, which "became the television factory in Britain and serves as the company's technology research center for Europe." 4

Expansion and development

The growth and expansion of Sony Corporation was positive, especially in terms of its goods and operational regions. Early Sony products included tape-recorded reel-to-reel and transistor radius. In 1968, the business debuted aperture grille cathode ray tube televisions, followed by computer monitors.

In addition, they introduced the Betamax video cassette recorder, the walkman, the Betacam floppy disks, the MS home-based computer, the comp at Disk Discman, the optical disc, and Sony-Ericson mobiles, among others. Sony introduced Rolly (Sony), an egg-shaped digital robotic music player, on September 10, 2007. As a result of Sony's quick expansion, there is a Sony store in every region of the world.

The marketing strategy of Sony

Sony's biggest issue is its unwillingness to capitalize on emerging markets due to complacency. Sony attempts to capitalize on converging markets. The company has failed to capitalize on the growth of the market for flat-screen televisions. Sony must increase its innovation, particularly in its electronics industry, by leveraging its scale and diversity to take risks that other companies cannot. Sony should capitalize on new technical opportunities as they become available.

In this sense, a strong marketing plan is necessary to ensure that the company's products sell well. As an international firm, Sonny's marketing plan includes establishing sales offices in Europe, Asia, the United States, and other regions. These offices function as the company's sales department. The personnel at these offices coordinate with the headquarters in Tokyo to ensure enough product distribution to sales offices. The company's product marketing is "completed" marketing.

The company's executives are located throughout the globe. As part of its marketing strategy and to retain customers, Sony provides after-sales services (guarantee) for one to two years on its products. In order to reach every part of the world and every person, Sony operates branch offices and retail shops in various parts of the globe.

Sony concluded 2007 successfully. It emphasized how the company has positioned itself strategically to acquire market share with an increased product portfolio. According to Sony's president, Dick Komiyama, "their objective remains to become one of the top three industry players."

Perspective and future

Sony Corporation has expanded significantly since its founding; the company recently "announced its plan to double annual production of liquid crystal display (LCD) televisions to four million in its Slovak factory this year"5.

Additionally, the business intends to form a joint venture with Samsung Electronics Co., S.LCD Corporation in South Korea and invest approximately $1.9 billion to increase its liquid crystal display and panel manufacturing. Sony has also announced that “its United States department has signed a merger agreement with Gracenote Inc, based in California U.S.A. The purchase is expected to close at the end of May, pending regulatory and other approvals"6.

Conclusion

Sony Eriksson Mobile, introduced by the firm in 2001, is one of the most popular mobile phones in the world. In 2007, more than 100 million mobile phones were sold. This resulted in an annual growth of 18 percent in sales. The handset held market share, particularly in the most recent quarter.

Sonny Ericsson predicts that the worldwide handset market in 2007 will exceed 1.1 billion units, consistent with prior projections. Comparing 2007 to 2006, the corporation claims it has grown by two percentage points, reaching roughly nine percent.

Sony Ericsson has introduced new web-enabled phones. The organization has locations or offices throughout Europe, Japan, China, India, and the United States.

It is impossible to disregard the recent significant occurrence that has a significant bearing on Sony's mobile marketing plans in Japan. This week, WWJ Company negotiated with Sony Ericsson in an effort to enhance the design process that animates Japan's ultrafashionable handset business. The primary issues under debate were:

Product planning; International development; Japanese market design quirks; New technologies (removable memory and swivel cameras).

Sony Ericsson might be considered one of the leading Japanese manufacturers. It is important to note that one of the greatest issues facing marketers in the modern era is the fact that customers have become more demanding than in the past as a result of easy access to product information and comparison shopping. This makes the field of product sales extremely competitive, as modern consumers can buy "from anyone, at any time, from any location, and have access to nearly unlimited information to assist them throughout the buying process." Therefore, corporations like Sony must learn to adapt to such circumstances in order to expand their companies.

Sony followed these trends by implementing the following marketing strategies:

Monitoring of the marketing's evolution in response to the modern customer; Company achieving the necessary balance between selling and servicing to ensure optimal return on investment; Company creating, promoting, building, and maintaining customer's trust through such issues as proper privacy and data protection measures; The company provides case studies, examples, and research on the mobile marketing situation in the entire Asian region.

References

Keshvani, N., & Tickle, S. (2001). (2001). The Changing Digital Mediascape in Online News. 99+.

Kodama, M. (2005). Technological Innovation via Networked Strategic Communities: An Analysis of a Japanese High-Tech Firm Advanced Management Journal, SAM, 70(1), 22+

The mobile universe (2002). The Futurist, volume 36, number 11

S. Mooney (2000). The Marketer's Guide to Advertising in Japan: 5,110 Days in Tokyo and Everything's Perfect. Westport, Connecticut: Quorum Books

Odagiri, H. (1992). Growth via Competition, and Competition via Growth: Strategic Management and the Japanese Economy Oxford: Clarendon Publishing Company

The Advantages of Mobile Marketing (2007). 20 pages of The Birmingham Post (England).

Simonin, B. L. (1999). Transfer of Marketing Expertise in International Strategic Alliances: An Empirical Analysis of the Role and Antecedents of Knowledge Ambiguity Journal of International Business Studies, 30(3), pages 463 and beyond.

H. Thompson (1999). Theory and Practice of Export Marketing for Construction 29(1), 139. Journal of Contemporary Asia.

Foonotes

2002 Sony history. Mac Daily News (2008), The New York Times (1991), Reuters (2008), Jiji Press (2008), and Ibid.

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Hersey-Blanchard Leadership Model Instant Essay Help

Table of Contents
Introduction Hersey-Blanchard Situational Leadership Impact on Organizations and Employees Society Criticism Impact Conclusion Bibliography Appendix

Introduction

The Hersey-Blanchard Leadership approach is characterized as complex, fractured, and inconsistent (Blackwell and Gibson 1998). In general, leadership is a process of social influence that enables one person to enlist the assistance of others in achieving a goal. The leadership job encompasses a variety of responsibilities, and it is instructive to examine these responsibilities in connection to the organizational functions of internal maintenance and external adaptability (Price, 2004). The book Management of Organizational Behavior describes the Hersey-Blanchard Leadership paradigm, which was established in the late 1960s. Hersey and Blanchard discuss the behavioral options accessible to leaders for executing the guiding and motivating functions, situational variables, and their effects on businesses, people, and society.

Situational Hersey-Blanchard Leadership

According to Paul Hersey and Ken Blanchard, situational leadership roles are transitory positions defined for a specific work, and the development of the role is dependent on an individual's unique talent in relation to the task at hand (Hersey and Blanchard 1977). Therefore, if the group is going on a hunt for a certain animal, one or more members may be granted leadership roles based on their experience and expertise in hunting that animal. These leadership responsibilities and authority would only be in effect so long as the group was engaged in the specified activity (Hersey and Blanchard 1977). Consequently to this hypothesis,

Leaders should adapt their style to the development style (or ‘maturity’) of their followers, based on how competent and motivated their followers are (their competence and motivation) (Situational Leadership 2007).

As a facet of situational contingencies, situational leadership theory handles subordinate changes directly. Due to the fact that situational leadership theory is largely a training model and its authors did not seek comprehensive empirical validation, it was easy to include change aspects that are relatively expensive to examine in organizational research. Regardless, situational leadership theory prescribes supervisory actions based on the stage of growth (or maturity) of the subordinate who is the object of the leader's efforts to exert influence (Hersey and Blanchard 1977). The model classifies subordinate maturity along two dimensions: “psychological maturity,” which measures the follower’s commitment, motivation, and willingness to accept responsibility; and “job maturity,” which captures the follower’s experience, knowledge, and comprehension of task requirements. Hersey et al. (1980) identified four leadership styles: (1) telling/directing, (2) selling/coaching, (3) participating/supporting, and (4) delegating/observing (see Appendix, Graph 1).

High psychological maturity represents a willingness to assume responsibility, whereas high job maturity reflects the capacity to carry out such tasks. Thus, a subordinate could be willing or reluctant and able or unable, with the unwilling and unable subordinate having the lowest level of overall maturity, followed by the willing but unable, then the able but unwilling, and the willing and able subordinate having the highest level of maturity (Hersey and Blanchard 1977). The superior's behavioral options include the well-known task-focused, directive, and structuring behaviors, as well as relationship-focused, supportive, and participatory behaviors. High degrees of either, both, or neither conduct may be embraced by a superior if they were viewed as distinct facets of the leader's style (Hersey and Blanchard 1977). High levels of directive, task behavior combined with a low level of paticipative, relationship behavior is referred to as “telling”; high task and high relationship behavior is “selling”; high relationship and low task behavior is “participating”; and low levels of both task and relationship behavior is “delegating” (Hersey and As the subordinate develops, the leader shifts from telling to selling to participation and, ultimately, to delegating, where a capable and dedicated subordinate is encouraged to assume responsibility for decisions and actions. In reality, this approach incorporates a variety of grading systems for superiors and subordinates to assess subordinates' levels of maturity. The concept is used alone or in conjunction with other goal setting plans, such as management by objectives, to improve leader-follower communications (Situational Leadership 2007).

Influence on Businesses and Employees

An organization's fundamental function is to standardize its operations to provide a stable foundation for productive operation. If a task could be completed by a single individual, the formation or assignment of a group would be unnecessary. Applied to businesses, the Hersey-Blanchard model The leadership model aids in analyzing and assessing the impact of situational variables on employee performance. It is common knowledge that groups require coordination of their members' actions (Polleys, 2002). This coordination consumes time and resources that would otherwise be devoted to beneficial endeavors. Organizations, which are groups of groups, require even more coordinating resources. Hersey and Blanchard describe the function of "readiness" in relation to one's occupation:

the readiness factor (innate ability, education, training, and experience), which shows an individual's ability to execute the job; the psychological maturity factor, which is connected with self-confidence, desire for achievement, and willingness to accept responsibility" (Einstein and Humphreys 2001, p. 48).

However, the majority of productive activity in modern society cannot be completed by an individual working alone. Organizations are crucial to the achievement of productive endeavor's objectives, and leaders are crucial to organizational coordination (Einstein and Humphreys 2001, p. 48).

The situational factors shared by all theories are those that lead to an overarching dimension of clarity, predictability, and certainty. The relationship between leader activity and situational demand is contingent on one's perception (Polleys, 2002). The leader-oriented theories advocate for increased consultation and participation when it will facilitate followers' inventiveness and/or acceptance. The subordinate-oriented theories emphasize the significance of providing followers with the cognitive and emotional resources essential for effective work, but which are absent from the environment otherwise. These resources consist of information, guidance, counseling, assistance, and encouragement. The effect on employees can be explained by the combination of the following styles and circumstances: The relationship between a leader and his or her subordinates should be viewed as a life-cycle before selecting the suitable leadership style. (Einstein and Humphreys 2001, p. 48).

The aforementioned evidence suggests that, within the framework of an organization, leadership entails direction and guidance, inspiration and encouragement, support and reinforcement, problem-solving and innovation. Varying contexts and individuals necessitate a different emphasis on these functions (Polleys, 2002). Leadership behaviors that progressively improve subordinate autonomy, i.e., from direction to participation to delegation, constitute subordinate growth. The establishment of subordinate autonomy entails a negotiation of leader and follower roles through a process of mutual influence.

Hersey and Blanchard also place significance on individualized concerns. This element assesses the extent to which the leader treats each follower in an equitable and gratifying manner that is distinct from how other followers are treated. A second component of this factor is that the leader's actions increase the subordinate's level of development by presenting challenges and learning opportunities. The acts of leaders and followers are influenced by their expectations on the outcomes of their efforts (Einstein and Humphreys 2001). Examples include a leader's evaluation of the relative utility of various behaviors to encourage and direct the work of subordinates, the selection of influence strategies, and the determination of how much autonomy a subordinate can handle. It is thought that the leader's expectations will determine his or her actions or methods. According to the research, expectations do impact leader behavior (Einstein and Humphreys 2001). It is vital to remember that these leader expectations are based on a variety of subordinate evaluations, such as needs, maturity, ability, etc. Although perceptions of leaders and followers are crucial to numerous ideas, the procedures by which interpersonal judgments are formed have received scant attention until recently. During the first five decades or so of leadership research, it was considered that reports and judgments accurately reflected reality (Lagone and Rohs 2003).. The direction and development of subordinates occurs within the context of a personal relationship. The importance of the personal and emotional foundation of the leader-follower connection cannot be overstated. In a study of substitutes for leadership, although features of the subordinate’s environment, such as peer relationships and organizational climate, may have a significant impact on the subordinate’s satisfaction and motivation, these factors do not weaken the leader’s influence on the follower (Stirling, 1998). Feedback from one’s superior had the greatest impact on overall job satisfaction, regardless of the availability of other feedback sources. The relationship between leader and subordinate appears to be one of sufficient emotional weight that, independent of other elements at play, the leader's actions will have a significant impact on the subordinate. (Sogunro, 1998).

Influence on Society

When groups or organizations operate in less predictable situations that require an emphasis on external adaptation, the important functions of the leader are problem solving and creativity. In some groups or communities, the relative differences between people are rather minimal, and the system is quite straightforward. Some people have significantly more influence than others, and one person's salary could be thousands of times that of another. Status' positive functions are crucial to the survival of every organization (Hersey and Blanchard 1977). If the duties faced by a social unit were equally vital to its survival, there would be no reason to separate its members. For instance, any member might perform any task if the impact of all tasks were equal. Due to the fact that individuals' talents vary and a social unit's activities vary in terms of their significance, it is crucial for an organization to assign its most capable members to its most crucial responsibilities (Einstein and Humphreys 2001).

Hersey-Blanchard The leadership model enables the explanation of motivation, and the effects of an action on the sense of internal motivation. Segriogionni and Glickman (2006) posed the following question: Do the positive and negative effects of an act show that the actor intended to produce them? In addition, the inherent egocentrism of humans has an effect on how consequences influence judgment, so that things that directly affect us have a stronger influence on our decisions than those that are irrelevant. Thus, when an action of another person has positive or negative effects for the observer, the observer is more likely to assume that the action was purposeful, resulting in favorable or unfavorable evaluations of the actor. This effect is amplified if the spectator believes he or she was the intended recipient of the deed (personalism) (Segriovanni and Glickman, 2006).

Criticism

Despite the apparent benefits of the Hersey-Blanchard Leadership model, there is a great deal of criticism on its laminations and disadvantages. Critics concede that the basic definition of leadership is the relationship between the leader and the led (Price, 2004). The majority of leadership study focuses on the variables that influence this connection. According to the social exchange theories, relationships are based on transactions that are mutually beneficial and satisfy the needs of both parties. One of the most important roles of a leader is to develop and direct the goal-oriented capabilities and activities of subordinates (Mabey and Salaman, 2003). How a leader can best carry out this duty is sometimes discussed in a disorganized manner. However, greater clarity can be achieved by acknowledging that leader-follower relationships change through time and that no two partnerships are identical. The supervisory actions that are effective with one subordinate may not be effective with another, even with the same subordinate at a different stage of development. Although efficient under the right circumstances, contingent reward monitoring is constrained by the nature of the task and the subordinate's attributes. For behaviorally oriented therapies to be effective, activities must have sufficient structure and clarity to allow for careful pinpointing and monitoring of desirable behaviors, without the encouragement of undesirable behaviors or the suppression of desirable behaviors not rewarded (Mabey and Salaman, 2003). Second, the contingency theories of supervision indicate that although high levels of leader "directiveness" can be beneficial when subordinates are confronted with tasks that are beyond their current capabilities, such close monitoring and instruction can be counterproductive when subordinates find their tasks to be within their capabilities (Mabey and Salaman, 2003).

There is a substantial degree of overlap between the theories pertaining to the characterization of crucial situational qualities. All models have a variable that might be incorporated under the general umbrella of structure or predictability (Segriovanni and Glickman 2003). The contingency model, path-goal theory, normative decision theory, and multiple impact model include factors that relate to the clarity and certainty of task requirements and goal trajectories in a very specific manner (Segriovanni and Glickman 2003). Reflecting on the “subordinate task maturity” variable in situational leadership theory reveals that this variable has a high degree of resemblance with the degree of structure in path-goal theory. Both terms allude to the subordinate's comprehension of the proper procedures for completing the work. Variables such as task organization are included in Yukl's multiple linkage model, although they are not emphasized in comparison to other situational variables (Segriovanni and Glickman 2003).

Conclusion

Despite its flaws, the Hersey-Blanchard model offers numerous chances for businesses to adapt to and efficiently respond to an ever-changing environment. In addition to task-related skill and knowledge, subordinate requirements and personality moderate the demand for highly organized work and the efficacy of close supervision. Regardless of the task, subordinates with high independence and demand for challenge are prone to respond negatively to close supervision. A crucial aspect of the Hersey-Blanchard paradigm is not just the direction of subordinates, but also their personal growth. As a subordinate's capabilities increase, coaching and guidance become more crucial than direct, targeted supervision. Increasing subordinate engagement in the creation of objectives and the establishment of goals transforms the subordinate from extrinsic incentive to self-regulation based on intrinsic motivation.

References

W. Blackwell and J.W. Gibson (1998). A Discussion with Leadership Expert Paul Hersey 5(2), 143. Journal of Leadership Studies. Einstein, W.O., Humphreys, J.H. (2001). Transformation of Leadership through the Alignment of Diagnostics and Leader Behaviors 48, Journal of Leadership Studies, 8(1) Situational Leadership, by Hersey and Blanchard (2007). Web. Hersey, P., and K. H. Blanchard (1977). The administration of organizational behavior. Prentice-Hall, Englewood Cliffs, NJ P. Hersey, K. H. Blanchard, and R. K. Hambleton (1980). Contracting for leadership style: A method and set of tools for establishing productive work partnerships. In P. Hersey, and J. Stinson (Eds.), Perspectives in leader effctiveness (pp. 95-120). (pp. 95-120). The Center for Leadership Studies is in Athens, Ohio. Lagone, C. A. and F. R. Rohs (2003). Community Leadership Development: Methodology and Implementation. Community Development Society Journal, 26 (4), 252-267 Mabey, C., and G. Salaman. 2003. Strategic Human Resource Management. Oxford: Blackwell Business. Price, A. (2004). The second edition of Human Resource Management in a Business Context. The Thomson Learning Company. Polleys, Master of Science (2002). Developing Servant Leaders Is One University's Reaction to the Anti-Leadership Vaccine. 117, Journal of Leadership Studies, 8(3) Segriovanni, Th., Glickman, K. (2006) Reconsidering Leadership: An Anthology of Articles. Corwin Press; second printing. Situational Administration (2007). Sogunro, O.A. (1998). Group members' leadership effectiveness and personality traits. 5(3) Journal of Leadership Studies. Stirling, J.B. (1998). The Role of Leadership in Condominium and Homeowner Associations., 5(1), 148, Journal of Leadership Studies.

Appendix

The Hersey-Blanchard Leadership Model (figure 1) (source: www.leadingtoday.org). [supanova question]

Change Management And Leadership Project Instant Essay Help

Introduction

Change is unavoidable in any company, and it is crucial to effectively manage it to ensure that the organization maintains or even improves its trajectory. Internal or external forces could have triggered the transformation. For the change to be successful, it must be created, planned, and implemented in the proper manner. This project focuses on the reasons of these shifts and the necessary procedures for their implementation. This research examines the leadership considerations that must be made to ensure that organizational change achieves beneficial outcomes. The goal of the project is to effect organizational transformation at Honda Motor Company through the implementation of online commerce.

Change inside an organization is never simple since it is constantly met with opposition. The opposition may come from the organization's leadership, its subordinates, or, in rare situations, from outside the organization. For change to be properly implemented inside a company, it must be widely communicated to the employees and its agents must be persistent. The study has elucidated the measures that must be followed to achieve and manage this change at Honda Motor Company. The objective of the project is to introduce online commerce at the Motor Company.

In the project, conversations and archival data were used to demonstrate the organization's changes and their consequences. The research focuses on two significant global corporations, specifically Honda Motor Company and Ericsson. There have been recommendations made regarding the most appropriate measures and steps to be taken in order to effect change inside the organizations. Particularly, secondary data, internet interviews, telephone surveys, and questionnaires were employed to collect the necessary information and data for the research. Kotter's paradigm for change management was utilized in this investigation. In addition, emphasis has been placed on the leadership styles and character/personality necessary for the successful implementation of the project.

The Application of Kotter's Model to Honda Motor Company

As a result of globalization and technological advancements, businesses must guarantee that they are adaptable in order to maintain efficiency and expand their consumer base. Honda Motor Company must adopt information technology in order to expand its customer base and into unexplored regions. To satisfy the needs of clients from all over the world, the organization must adopt internet commerce. According to Kotter's paradigm, the first step in change management is to establish a sense of urgency.

In this scenario, it is apparent that the world is progressing toward becoming a society based on information technology. Information technology is being utilized in nearly every industry by both domestic and multinational businesses. A large proportion of consumers are turning to e-commerce, necessitating that Honda motor firm adopt e-commerce and move the majority of its transactions online. If such steps are not adopted, the company risks losing a very large proportion of its clients (Barling 1996:832).

The second step is choosing the guiding team. Several persons have been chosen to ensure the success of this endeavor. The group consists of highly qualified and competent personnel who can ensure the project's success. Tom Ross; Minoru Harada, the project coordinator; James Smart, the I.T. specialist; the research staff; and Anne Gates, the market specialist, comprise the team. Through their design, planning, and execution expertise, the project is anticipated to be highly successful. The team is responsible for ensuring that the organization undergoes the necessary transformations to bring the majority of its commercial services online and expand its client base.

The vision and strategy for the transition include the incorporation of e-commerce into Honda Motor Company's activities. The company has been using traditional payment methods such as cash, check, and hire purchase. With technical improvements, the number of clients with Internet connection has expanded, necessitating the company's entry into this sector.

The company has not adopted online payment methods such as credit cards, Moneybookers, wire transfers, and PayPal. The majority of the company's prospective clients are enrolled with social media sites such as Facebook and Twitter, necessitating marketing techniques that target those clients on social media. This will significantly enhance the company's efficiency and expand its clientele (Bass 1985: 20-29).

In the fourth stage, which involves communicating the idea to the public in order for them to comprehend and adopt it, it is evident that the contemporary market, notably in the automobile industry, has been marked by intense competition. The Honda Motor Company, for example, confronts a great deal of rivalry from automakers such as Toyota, Mercedes, Ford, and Mazda, among others. With the introduction of online marketing and purchasing services, it is a foregone conclusion that the company's sales will expand.

Other industries and businesses that have adopted online trade services have experienced huge success and profitability. For example, the book business and numerous telecommunications corporations, such as Ericsson, have adopted internet commerce to reach more customers and increase efficiency. By adopting e-commerce, the Company will surpass its rivals and keep pace with the world's rapid transformation (Atkinson 1999:340).

The majority of nations have established rules to promote free trade, and Honda's ability to penetrate these markets and stay ahead of its competitors will rely heavily on internet trading. Due to the fact that a commercial transaction can be accomplished with a single click, online commerce is typically more efficient and economical. It is also true that embracing online commerce will facilitate shopping and provide consumers with a wider selection of goods.

Using only the company's website, a buyer will be able to quickly peruse all accessible vehicle information at Honda dealerships. It will become simpler to compare the quality and cost of products. By adopting e-commerce, it will be simpler to consolidate information about the company's items from all of its stores throughout the world, as this data will be accessible on the website (Bryman1987:13-19).

The fifth phase is enabling other individuals so that they can act. Tom Ross, as the project coordinator, is responsible for ensuring that each team member assumes his or her responsibilities and does everything in his or her power to complete the assigned tasks. Minoru Harada, the I.T. specialist, is responsible for ensuring that all of the Company's stores publish their stock and price information. When this information becomes available, it will be posted on the business's website. In addition, the IT specialist has been tasked with installing the necessary software to enable online credit card, wire transfer, Moneybookers, and PayPal transactions (Burns 1978:300).

James Smart, who is a member of the research staff, is responsible for coordinating research activities and ensuring that the required data for the study is accessible. He is responsible for advising current and prospective customers on online services, requirements, and the purchasing process.

He is responsible for obtaining the consumer's viewpoint in order to ensure that their needs are adequately met. To assure the success of the initiative, he must compare this online purchasing model to others that have been successful at other organizations. On the other hand, the market specialist is responsible for identifying target markets, particularly online groups. She must market Honda products via social media, email, and other online channels such as Skype and Google traders to reach a large number of customers (Euske 1980:36-42).

In the production of'short-term victories,' the team is responsible for testing the project on the first 100 clients, and if it proves effective, the project will be rolled out across the country and internationally. The first 100 clients will primarily be from within the country, and if the pilot is successful, it will be rolled out to all of the company's international branches. A shipment arrangement will be formed to facilitate the problem-free transfer of the company's items to the clients. The project will be carried out in stages from nation to country and continent to continent until all target markets are reached (Burger 1979:200).

The seventh stage entails perseverance. The team that was chosen to implement this project is determined to see it through to completion. However, this will not prevent the initiative from being rolled out to all of the company's global offices. The threats may originate from within or without the organization. Some in the marketing department, for example, fear that their careers may be threatened by the introduction of online marketing. This group will almost certainly oppose the adoption of this initiative.

The final phase involves the formation of a new culture. The objective of the initiative is to establish an IT culture throughout the organization. The majority of the company's transactions have been performed manually. Computers within the organization have primarily been utilized for calculations and data storage, but not for marketing or transaction processing. They will play an extremely active part in marketing and conducting business transactions after the completion of this project. The personnel will require training to perform their new responsibilities properly. Marketers will need to adopt the new marketing strategy that targets clients on social media and in distant nations. In such a scenario, it may not be necessary to meet the client.

Teamwork is crucial to the success of any project, which is why the team is committed to achieving its objectives as a unit. Democracy is also of great importance. Every team member's perspective is assessed objectively and without bias. Everyone is treated as an individual, and his or her perspective on the project might be crucial to guaranteeing its success. The stockholders and employees are to be consulted and persuaded to buy into the notion, rather than being compelled to do so against their will. All of these procedures will be performed methodically to ensure that the organization embraces the intended transformation.

Methodology

In this study, multiple data gathering, analysis, and representation strategies have been employed. For instance, during market research, internet interviews, telephone surveys, and questionnaires are utilized to collect data. Various Honda Motor Company clients and future consumers will be interviewed via video conferencing and social media for the online interview approach. Among the questions for the online interview are the following:

What is your view about online shopping? Would you be open to accepting it? Have you ever purchased more things online? If yes, what is your opinion of the service?

In addition, telephone surveys will be conducted, focusing on the management teams of the company's international operations. The objective will be to determine their perspective on the e-commerce initiative and how they believe clients in their different countries will react to the concept. Among the questions asked during the survey are the following:

What is your opinion on internet commerce as a member of the management team? How do you believe people will react to the concept of online purchasing?

Additionally, questionnaires are planned for use in the study. They are intended to target employees of Ericsson Company, one of the businesses that have adopted internet commerce. They will be questioned on how they achieved success with the method. In addition, they will be required to respond to a number of questions addressing some of the obstacles they confront. The questions to be asked include the following:

How did you execute the online trading system so well, both in terms of performance and outcomes? What style of leadership did you adopt during the project's implementation? What difficulties have you encountered throughout the implementation and operation of this system?

Data Analysis

Using descriptive statistics and graphs, the obtained data regarding the leadership styles, performance, and commitment of subordinates will be examined.

Budget for the Task

COST

FURTHER COMPUTERS $400,000

ADDITIONAL SATELLITE DISHES AND OTHER ELECTRONIC DEVICES $500,000

APPROPRIATE SOFTWARE $40,000

Budget of the call center is $600,000.

TRANSPORTATION EXPENSES $200,000

MARKETING BUDGET $415,000

RESEARCH AND DEVELOPMENT BUDGET $679,000

$70,000 IN CONSUMER ADVERTISING

DEALER PROMOTIONS $45,000

DEALER CATALOGS $90,000

TOTAL $3,039,000

Through effective planning and execution, the project is expected to be completed within the allotted time frame and within the allocated budget. The project is intended to be both effective and of high quality.

Similarity to Ericsson

Ericsson is one of the big corporations that have integrated online commerce with great success. Prior to that time, the business conducted its transactions manually. In most instances, the buyer was required to travel to their separate locations in order to acquire the company's accessories. To deploy the internet trading system, the corporation underwent an organizational transformation. The Ericsson Corporation was required to assemble a group to carry out the designing, planning, and implementation of this specific change. It was necessary to expand its service delivery capacity and efficiency.

As a result of the introduction of online purchase, the business had to undertake numerous organizational changes at the management and human resource levels. Prior to the commencement of this project, there was much opposition, notably from those who believed their employment were at risk. The team guiding this transition, however, had to persuade the people of the relevance of such a project and how crucial it was in a rapidly changing world, especially in the IT industry.

People's shopping habits were changing, and it was necessary to implement a system that met their requirements. The model developed by John P. Kotter was utilized in the implementation of these adjustments because it was determined to be systematic and procedural. For the public to accept the concepts, the leadership needed to be convincing. This was only feasible due to their immense power on their subordinates. People who were accustomed to performing their work manually had to be indoctrinated with an I.T. culture. To ensure the success of the project, subordinates have to participate in its implementation.

The employees of Ericsson Company were sent questionnaires to examine their perceptions of this move and its success as well as its shortcomings. It was pretty obvious from the studies that the transformational

Benetton, Gap, A&F Hiring On The Basis Of Looks Instant Essay Help

Introduction

Observing the world today, one cannot help but be amazed by the changes occurring in the production industry. Today, many businesses must make drastic decisions to maintain their leadership positions. In the current economic situation, where technology is rapidly evolving, firms must do everything possible to remain competitive. This requires businesses to develop and redesign their present items in order to remain competitive. This is especially true for businesses supplying identical products in an already saturated market. For many of these businesses, innovation and refurbishment will determine their ability to endure. This study examines the role that innovation and renovation have in ensuring that a company stays ahead of its rivals. This is achieved through reviewing a Nespresso case study. This study analyses the evolution of this globally known brand and the obstacles it faces in the future. (Miller)

Nestle, which was founded in 1867, is a global leader in food production and has more employees than most firms have ever had at once. One might therefore assume that a company with such a large number of employees would have a corresponding economic expansion. This was not the case, though. Nestle has an average yearly growth rate of 2% for its entire existence, according to statistics. Their forecast of a 4% growth rate remained a pipe dream for several years. Another cause was the market's intense competition with other brands. Although the company's new product Nescafe had been performing well on the market, a recent phenomena indicated that customers were developing a preference for it. This obviously demonstrated the necessity to alter its market strategy. (Nespresso)

In 1997, when Peter Brabeck assumed leadership of the company, he was well aware of the need for innovation and renovation within the organization. Innovation, according to Brabeck, was not only the capacity to raise a product to an entirely new level, but also the capacity to create an entirely new product. In contrast, he defined refurbishment as the capacity to not only sustain the present brand but also considerably enhance it. Brabeck anticipated that these phenomena would not only be applied to existing products, but also to management. Brabeck could have decided to be complacent despite the company's modest market risk; but, he opted to go all out instead. (Miller)

Brabeck raised the ante by introducing the Nespresso, even though Nescafe was performing well in the dissolved coffee market. The Nepresso capsules were independently manufactured and contained a few grams of ground coffee. These capsules were custom-made for use with custom-built equipment. Unlike other dissolvable coffees on the market, Nespresso was neatly packed. Due to the nature of its packaging, it could preserve its freshness for six months after manufacturing. This was an entirely novel innovation by Nestle. (Nespresso)

The Nespresso coffee could only be utilized with machines that were owned exclusively by Nestle. Even though the machines were not for sale, the Nespresso coffee generated substantial earnings for the corporation. Initially, the Nespresso appeared to be a weird concept that many believed would not generate significant revenues. After a short time, financial analysts predicted that this brand may generate profits as high as 50 percent. (Nespresso)

There are numerous lessons to be learned from this event. The first focuses on uniformity. When one examines the true history of this technology, it is impossible to overlook the significance of consistency. While Nestle had a reputation for producing inexpensive espresso coffee, the manufacture of Nespresso required up to five times as much money as the initial production. For many businesses, the primary objective is to minimize production costs and maximize revenues. This was not the case in the eyes of Nespresso's founders. These men saw the power of invention and chose to pursue their ideas despite the steep price. This demonstrates how important determination and belief in a goal can be in achieving success. (Espresso 218)

In developing the product, there were also technical challenges to overcome. Initially, it was impossible to maintain the coffee's freshness and its quality was inconsistent. These obstacles had to be overcome before any progress could be made. This may have seemed implausible to many people, but not to the creators of this brand. These individuals realized that they had a job to perform and could not be deterred by obstacles. (Miller)

Nestle as a whole believed in the value of innovation. In a departure from its conventional function as a food manufacturer, Nestle launched a new division named Nestle Coffee Specialties. This corporation was tasked with promoting coffee that it had recently begun producing. At the time, many individuals believed that the concept of making coffee, let alone coffee in capsule form, was ludicrous. However, those that believed in the concept chose to maintain their vision. To those who believed in the concept, innovation was a surefire method for testing and demonstrating how firms may be developed in unconventional ways. (Wheller)

Initially, this approach appeared promising, but it eventually became a failure. The equipment frequently malfunctioned and required continual maintenance. This alone was costing Nestle a great deal of money, hence reducing profitability. Some countries, like as Japan, were less receptive to the brand, which decreased the anticipated sales. This prompted a reevaluation of the earlier strategy. Nestle, contrary to the norm, recruited Lang, a young and vibrant man from Phillip Morris. Lang was entrusted with modernizing the Nespresso brand to make it more appealing to a wide audience. (Miller)

Lang initially realized that if he wanted the Nespresso brand to have an impact, he needed to alter the target market. Whereas the brand was originally intended solely for offices, it was now incorporated into homes. Lang additionally altered the design of the coffee capsules. In addition to reducing the cost of the materials, this allowed them to be recycled and reused. This remodeling reduced the price of the product, making it more appealing to a wide audience. To assure consistent sales, Lang devised a method whereby customers could order Nespresso over the Internet or over the phone. By 1996, as a result of this strategy, the company had began to generate profits. This was only feasible because Nestle redesigned the original brand. (Espresso 219)

When Lang departed the company, NCS had surpassed SFr150 million in revenue. In around ten years, the management would like to increase this sum to one billion Swiss francs, though. Currently, NCS has only reached roughly 1% of its intended household audience. To achieve its targeted objective, NCS must increase its household penetration efforts. Current status on the worldwide market must be evaluated. Although the 5% figure is impressive by many measures, NCS should still investigate this possibility. In order to expand revenue, the corporation must also seek out a new consumer base. Advertising is another approach that the corporation might implement. Currently, NCS's equipment are primarily sold through word of mouth. The corporation must devise marketing campaigns for their machines. This should result in a substantial increase in their consumer base. Considering that few people can afford coffee, NCS should seek for ways to cut the price of coffee in order to improve sales. Also required is a departure from the conventional method of promoting the machines. By boosting distribution, there would be a larger market for the capsules. This should result in a substantial increase in sales for this particular coffee brand. (Nespresso)

Conclusion

The history of Nespresso is an excellent illustration of how innovation and renovation can lead to business success. By pausing its original manufacturing line, Nestle demonstrated to naysayers that it had the capacity to dominate the coffee market. The anecdote demonstrates the importance of sticking with an idea even when others believe it will never succeed. When an innovative product fails to get traction on the market, it is necessary to take a detour by rebranding it as a more marketable product. In the current economic climate, where many firms are failing due to intense competition and the current economic slump, innovation and renovation may be the determining factors for whether a business will survive or fail.

Sources Cited

Espresso. "Coffee international File," Market Trading International, 2002:219 222; Espresso.

Miller, Joyce, "Innovation and Redesign: The Espresso Story," IMD international, 2003.

Where the leaders stand, Tea & Coffee Trading International, 2002, Nespresso.

Wheller, Michael. "Coffee to 2000: An untapped market" Economist intelligence unit, 1995.

[supanova question]

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Abstract

Corporate social responsibility is one of the marketing methods a company can employ to promote its brand. The purpose of this report was to investigate how corporations around the world carry out their corporate social responsibility. The researcher chose Alibaba Group Holding Limited in order to better comprehend how some Chinese corporations perform CSR efforts.

The objective was to compare the best worldwide practices with what is done in China in order to suggest particular areas that local enterprises should adopt in order to increase the effectiveness of such efforts. The researcher gathered secondary source data. These included freshly published books, journal articles, and company websites. Other credible online sites proved useful to the research as well. The lack of time prevented the collection of primary data from Alibaba Group Holding Limited's personnel in order to better understand the company's present procedures.

The analysis revealed that the majority of Chinese corporations must alter their approach to corporate social responsibility. Evidently, some of these companies engage in this practice to develop a market image or to comply with specific rules. The research indicates that CSR can only be successful if a company is committed to achieving a certain objective. A effort that involves planting trees in a day but fails to maintain them is worthless. Without watering and care, the seedlings will die, negating the primary objective of increasing the vegetative cover in a particular region of the country. The report recommends that businesses choose projects whose prices are within their financial means and remain dedicated to guaranteeing their success.

Introduction

Alibaba Group Holding Limited is one of China's most prominent merchants. Jack Ma and Peng Lei launched the company in 1999, and since then it has achieved remarkable success on the Chinese local market (Epstein & Rejc 2014). They observed that the demand for things sold online was increasing. Due to the expansion of the market over the previous decade, the number of online merchants has expanded dramatically over the past decade (Crowther & Seifi 2018).

On the local market, Alibaba Group must compete against significant worldwide brands. Alexander (2015) says that a company's capacity to attract and retain a loyal client base is dependent on more than just providing the greatest items at the lowest prices. Developing non-commercial ties with the local community is also crucial. As a result, numerous businesses are currently investing a substantial amount of resources in corporate social responsibility (CSR).

Giving back to the community is one of the most effective methods for a company to express its dedication to the local community. It demonstrates that the corporation is concerned not only with maximizing profits but also with addressing societal issues. According to Di, Chymis, and D&amp

Resolving these issues reduces the burden on society and enhances the relationship between the company and its prospective clients. It strengthens a company's brand in the marketplace. In this article, the researcher will examine how corporations around the world engage in corporate social responsibility and what Alibaba Group's management can do to adopt best practices in this field. Through this study, it will be possible to comprehend Alibaba Group's present efforts to give back to the community, to identify potential flaws and to recommend ways to enhance them.

Research Concerns

The focus of the study was on the corporate social responsibility practices of various corporations in various parts of the world. The scholar was also interested in determining what Chinese businesses should do to ensure that their CSR had a substantial influence on the environment, society, or any other target area. This indicates that they must abandon their current method and adopt fresh strategies. The researcher was required to answer the following questions in order to conduct this investigation.

What factors led to organizational change, and what was the aim of the transformation? Who were the involved stakeholders, and what part did they play in the transformation process? Using applicable theory and/or a framework, describe the organizational change process. How has the shifting organizational context impacted the implemented changes? How would the researcher evaluate the change's results?

Objectives of Study

When addressing the preceding inquiry, the researcher was also interested in reaching particular objectives. The researcher deemed it vital to establish certain objectives that needed to be attained throughout the investigation. It was important to accomplish the following goals:

To discuss the leadership's involvement in this organizational transformation. To examine the challenges of organizational culture change.

Literature Review

In the preceding chapter, the researcher offered a comprehensive overview of the subject being investigated. The chapter described the significance of the issue and the objectives that should be attained following completion. This chapter will focus on a review of the relevant literature. Corporate social responsibility is a subject that has garnered the interest of numerous experts over the past several decades (Farache et al. 2019). As a result, it is essential to analyze the findings of other researchers and the knowledge gaps that require more study.

The evaluation assists in eliminating instances of redundant information. In this study, the researcher will examine how corporations in various parts of the world have implemented CSR initiatives. The chapter will also examine the application of theories to CSR initiatives. It will aid in the justification of actions done by these companies to promote the welfare of the targeted community.

Companies around the world can no longer overlook corporate social responsibility in their corporate objectives. In the current competitive business environment, advertising alone is insufficient to strengthen a company's brand. According to Baskaran (2016), audiences frequently see advertisements as unpleasant intrusions. Consequently, people would disregard such advertisements.

Corporate social responsibility is one of the innovative brand-promotion strategies that businesses are currently implementing. The initiative enables a company to engage in a non-commercial activity aimed at protecting the environment or enhancing the social welfare of the targeted group (Bainbridge & Henderson 2016). Often, undertaking such programs displays a company's dedication to enhancing the social and economic structure of a nation.

Corporate Social Responsibility Around the World

The concept of corporate social responsibility has become a normal practice for businesses across the globe. According to Bainbridge and Henderson (2018), companies did not felt obligated to engage in such humanitarian efforts in the past. However, the influence of corporate entities on people and the environment is becoming increasingly apparent, and businesses recognize the necessity of addressing the issue (Kurtz & Boone 2014).

Companies in the food industry have been criticized for failing to safeguard their customers from harmful preservatives in calories. The manufacturing industry is responsible for vast amounts of soil, air, and water pollution. Some of these contaminants cause diseases such as cancer and respiratory issues (Izzo & Vanderwielen 2018). As these businesses attempt to streamline their operations in an effort to lessen their environmental impact, they have a responsibility to society. Corporate social responsibility has become a fundamental obligation that must be carried out with great effectiveness.

International Business Machines Corporation, commonly referred to as IBM, is a global American corporation with headquarters in Armonk, New York (Little 2014). The company has a global reputation as one of the Fortune 500 companies that has made a major investment in the education industry. According to a report by UNESCO, the corporation was one of the greatest supporters to educational initiatives between 2011 and 2013.

During this time span, the corporation contributed more than $ 144 million to fund the education of students in the United States and other countries. The company thinks that empowering youth through education is one of the means of combating global poverty in both developed and developing economies (Lenssen & Smith 2019). The corporation has worked closely with UNESCO and numerous non-governmental organizations in the United States and developing nations to guarantee that their donations reach their intended recipients. Banco Santander of Spain and GlaxoSmithKline are two additional prominent educational program donors.

British Petroleum is one of the world's largest petroleum corporations. According to Leal (2019), the corporation has been accused of engaging in harmful environmental practices. The corporation has been actively involved in corporate social responsibility as a measure to fight such narratives. Each fiscal year, the corporation invests millions of dollars to promote environmental programs. It has collaborated closely with the United Nations Environment Program (UNEP), the United Nations Human Settlements Program, and a number of other government and non-government organizations to conserve the environment. As a means of reducing the amount of carbon dioxide in the atmosphere, the company has invested in programs such as tree planting and the preservation of native vegetation (Leal 2019).

Major oil and gas businesses, such as ExxonMobil and Shell, have also contributed to environmental organizations in an effort to combat climate change. Litow (2018) adds that for a long time, petroleum companies resisted the concept of global warming and climate change. Emerging environmental concerns, such as melting polar ice and a rise in storms, prolonged drought in many regions of the world, and flooding, have compelled them to face reality.

Toyota Motor Corporation is a Japanese automobile manufacturer based in Toyota, Aichi Prefecture (Haski-Leventhal 2018). As the largest automaker in the world, the firm has stayed devoted to a variety of programs designed to improve the social welfare of its customers and the general public. Its corporate social responsibility projects extend beyond Japan to other regions of the globe. The organization has designed a CSR program with three sides, based on the three pillars of sustainability, as indicated in Figure 1. There are social, environmental, and economic considerations.

The corporation has supported educational programs for children in Africa and portions of Asia, which are rising economies. Numerous environmental programs have been supported in Japan, South America, and areas of Africa. The company believes it can change the world by fostering workplace diversity as a means of combating racism and cultural intolerance in various parts of the globe. Such measures have endeared the business to the international market. Boren (2016) contends that Toyota is one of the most popular automobile brands in both developed and emerging nations worldwide.

Figure 1: Toyota's CSR endeavors (Weber & Wasieleski 2018).

Tata Motors is one of India's leading automobile manufacturers. Frequently, the corporation sets aside a certain amount of money for certain corporate social responsibility projects. The safeguarding of water towers to guarantee the availability of clean water for domestic, industrial, and agricultural usage is one of the country's most pressing concerns (Weber & Wasieleski 2018). Tata Motors has always been committed to protecting the country's water towers as a means of increasing the country's access to clean water. It has financed numerous environmental organizations, such as UNEP, to help plant trees in order to increase the country's forest cover.

These activities have helped the corporation demonstrate its dedication to environmental conservation (Weber & Wasieleski 2018). It demonstrates that the company is not only interested in producing money, but also in the environment and the community.

Determining the Selection of Corporate Social Responsibility in Contemporary Society

Haski-Leventhal (2018) says that when engaging in corporate social responsibility, it is crucial for management to make a proper choice regarding the sponsored activity. The chosen activity should always be determined by the prevailing socioeconomic and environmental concerns. It is usually good to choose the problem that is of utmost importance to the populace. During the recent earthquake in Japan, which was followed by numerous other severe calamities, many people perished and others were rendered homeless (Leal 2019). Numerous Japanese firms, like as Toyota Motors, focused on humanitarian efforts to assist afflicted families in returning to normalcy.

Izzo and Vanderwielen (2018) contend that engaging in such activities during a crisis frequently has a substantial effect on the affected group and the company's brand. Donations from such a company assist affected individuals in meeting their fundamental necessities. Due to the extensive media coverage of such events, the company's generosity would be extensively disseminated. The local and international community would be reminded of the company's dedication to assisting those in need. Those that receive direct assistance from the company would develop brand loyalty several years after the tragedy. They will remember that the company assisted them at a time of need, and as a result, they have a duty to contribute to its growth in the event that similar situations arise in the future.

In addition to focusing on their market activities, businesses are also concentrating on issues directly relevant to their operations. The majority of manufacturing companies are concentrating on environmental measures (Weber & Wasieleski 2018). According to Lenssen and Smith (2019), environmental groups have identified the industrial sector as the primary source of air, water, and land pollutants. Companies' effluents find their way into pristine water, affecting aquatic life.

Additionally, the industry is responsible for the enormous release of greenhouse gases. These companies have developed CSR efforts in an effort to reduce their environmental effect. They have funded tree-planting activities to aid in air purification and environmental sustainability (Bainbridge & Henderson 2018). On the other side, financial institutions have supported educational programs to promote a financially independent community.

Theoretical Structure

When analyzing the topic of corporate social responsibility, it is essential to examine the underlying theoretical frameworks in order to comprehend why companies invest in such projects. Carroll's four-tiered CSR pyramid is one of the prevalent theories that explains the underlying motivations of multinational firms when implementing such programs. It determines responsibility levels depending on their value to the organization. At the base of the pyramid are economic requirements. A company has a duty to its shareholders. Its survival hinges on its capacity to regularly generate money. Such initiatives are meant to

Primerica: Strategy And Statements Analysis Instant Essay Help

Abstract

Corporate social responsibility is one of the marketing methods a company can employ to promote its brand. The purpose of this report was to investigate how corporations around the world carry out their corporate social responsibility. The researcher chose Alibaba Group Holding Limited in order to better comprehend how some Chinese corporations perform CSR efforts.

The objective was to compare the best worldwide practices with what is done in China in order to suggest particular areas that local enterprises should adopt in order to increase the effectiveness of such efforts. The researcher gathered secondary source data. These included freshly published books, journal articles, and company websites. Other credible online sites proved useful to the research as well. The lack of time prevented the collection of primary data from Alibaba Group Holding Limited's personnel in order to better understand the company's present procedures.

The analysis revealed that the majority of Chinese corporations must alter their approach to corporate social responsibility. Evidently, some of these companies engage in this practice to develop a market image or to comply with specific rules. The research indicates that CSR can only be successful if a company is committed to achieving a certain objective. A effort that involves planting trees in a day but fails to maintain them is worthless. Without watering and care, the seedlings will die, negating the primary objective of increasing the vegetative cover in a particular region of the country. The report recommends that businesses choose projects whose prices are within their financial means and remain dedicated to guaranteeing their success.

Introduction

Alibaba Group Holding Limited is one of China's most prominent merchants. Jack Ma and Peng Lei launched the company in 1999, and since then it has achieved remarkable success on the Chinese local market (Epstein & Rejc 2014). They observed that the demand for things sold online was increasing. Due to the expansion of the market over the previous decade, the number of online merchants has expanded dramatically over the past decade (Crowther & Seifi 2018).

On the local market, Alibaba Group must compete against significant worldwide brands. Alexander (2015) says that a company's capacity to attract and retain a loyal client base is dependent on more than just providing the greatest items at the lowest prices. Developing non-commercial ties with the local community is also crucial. As a result, numerous businesses are currently investing a substantial amount of resources in corporate social responsibility (CSR).

Giving back to the community is one of the most effective methods for a company to express its dedication to the local community. It demonstrates that the corporation is concerned not only with maximizing profits but also with addressing societal issues. According to Di, Chymis, and D&amp

Resolving these issues reduces the burden on society and enhances the relationship between the company and its prospective clients. It strengthens a company's brand in the marketplace. In this article, the researcher will examine how corporations around the world engage in corporate social responsibility and what Alibaba Group's management can do to adopt best practices in this field. Through this study, it will be possible to comprehend Alibaba Group's present efforts to give back to the community, to identify potential flaws and to recommend ways to enhance them.

Research Concerns

The focus of the study was on the corporate social responsibility practices of various corporations in various parts of the world. The scholar was also interested in determining what Chinese businesses should do to ensure that their CSR had a substantial influence on the environment, society, or any other target area. This indicates that they must abandon their current method and adopt fresh strategies. The researcher was required to answer the following questions in order to conduct this investigation.

What factors led to organizational change, and what was the aim of the transformation? Who were the involved stakeholders, and what part did they play in the transformation process? Using applicable theory and/or a framework, describe the organizational change process. How has the shifting organizational context impacted the implemented changes? How would the researcher evaluate the change's results?

Objectives of Study

When addressing the preceding inquiry, the researcher was also interested in reaching particular objectives. The researcher deemed it vital to establish certain objectives that needed to be attained throughout the investigation. It was important to accomplish the following goals:

To discuss the leadership's involvement in this organizational transformation. To examine the challenges of organizational culture change.

Literature Review

In the preceding chapter, the researcher offered a comprehensive overview of the subject being investigated. The chapter described the significance of the issue and the objectives that should be attained following completion. This chapter will focus on a review of the relevant literature. Corporate social responsibility is a subject that has garnered the interest of numerous experts over the past several decades (Farache et al. 2019). As a result, it is essential to analyze the findings of other researchers and the knowledge gaps that require more study.

The evaluation assists in eliminating instances of redundant information. In this study, the researcher will examine how corporations in various parts of the world have implemented CSR initiatives. The chapter will also examine the application of theories to CSR initiatives. It will aid in the justification of actions done by these companies to promote the welfare of the targeted community.

Companies around the world can no longer overlook corporate social responsibility in their corporate objectives. In the current competitive business environment, advertising alone is insufficient to strengthen a company's brand. According to Baskaran (2016), audiences frequently see advertisements as unpleasant intrusions. Consequently, people would disregard such advertisements.

Corporate social responsibility is one of the innovative brand-promotion strategies that businesses are currently implementing. The initiative enables a company to engage in a non-commercial activity aimed at protecting the environment or enhancing the social welfare of the targeted group (Bainbridge & Henderson 2016). Often, undertaking such programs displays a company's dedication to enhancing the social and economic structure of a nation.

Corporate Social Responsibility Around the World

The concept of corporate social responsibility has become a normal practice for businesses across the globe. According to Bainbridge and Henderson (2018), companies did not felt obligated to engage in such humanitarian efforts in the past. However, the influence of corporate entities on people and the environment is becoming increasingly apparent, and businesses recognize the necessity of addressing the issue (Kurtz & Boone 2014).

Companies in the food industry have been criticized for failing to safeguard their customers from harmful preservatives in calories. The manufacturing industry is responsible for vast amounts of soil, air, and water pollution. Some of these contaminants cause diseases such as cancer and respiratory issues (Izzo & Vanderwielen 2018). As these businesses attempt to streamline their operations in an effort to lessen their environmental impact, they have a responsibility to society. Corporate social responsibility has become a fundamental obligation that must be carried out with great effectiveness.

International Business Machines Corporation, commonly referred to as IBM, is a global American corporation with headquarters in Armonk, New York (Little 2014). The company has a global reputation as one of the Fortune 500 companies that has made a major investment in the education industry. According to a report by UNESCO, the corporation was one of the greatest supporters to educational initiatives between 2011 and 2013.

During this time span, the corporation contributed more than $ 144 million to fund the education of students in the United States and other countries. The company thinks that empowering youth through education is one of the means of combating global poverty in both developed and developing economies (Lenssen & Smith 2019). The corporation has worked closely with UNESCO and numerous non-governmental organizations in the United States and developing nations to guarantee that their donations reach their intended recipients. Banco Santander of Spain and GlaxoSmithKline are two additional prominent educational program donors.

British Petroleum is one of the world's largest petroleum corporations. According to Leal (2019), the corporation has been accused of engaging in harmful environmental practices. The corporation has been actively involved in corporate social responsibility as a measure to fight such narratives. Each fiscal year, the corporation invests millions of dollars to promote environmental programs. It has collaborated closely with the United Nations Environment Program (UNEP), the United Nations Human Settlements Program, and a number of other government and non-government organizations to conserve the environment. As a means of reducing the amount of carbon dioxide in the atmosphere, the company has invested in programs such as tree planting and the preservation of native vegetation (Leal 2019).

Major oil and gas businesses, such as ExxonMobil and Shell, have also contributed to environmental organizations in an effort to combat climate change. Litow (2018) adds that for a long time, petroleum companies resisted the concept of global warming and climate change. Emerging environmental concerns, such as melting polar ice and a rise in storms, prolonged drought in many regions of the world, and flooding, have compelled them to face reality.

Toyota Motor Corporation is a Japanese automobile manufacturer based in Toyota, Aichi Prefecture (Haski-Leventhal 2018). As the largest automaker in the world, the firm has stayed devoted to a variety of programs designed to improve the social welfare of its customers and the general public. Its corporate social responsibility projects extend beyond Japan to other regions of the globe. The organization has designed a CSR program with three sides, based on the three pillars of sustainability, as indicated in Figure 1. There are social, environmental, and economic considerations.

The corporation has supported educational programs for children in Africa and portions of Asia, which are rising economies. Numerous environmental programs have been supported in Japan, South America, and areas of Africa. The company believes it can change the world by fostering workplace diversity as a means of combating racism and cultural intolerance in various parts of the globe. Such measures have endeared the business to the international market. Boren (2016) contends that Toyota is one of the most popular automobile brands in both developed and emerging nations worldwide.

Figure 1: Toyota's CSR endeavors (Weber & Wasieleski 2018).

Tata Motors is one of India's leading automobile manufacturers. Frequently, the corporation sets aside a certain amount of money for certain corporate social responsibility projects. The safeguarding of water towers to guarantee the availability of clean water for domestic, industrial, and agricultural usage is one of the country's most pressing concerns (Weber & Wasieleski 2018). Tata Motors has always been committed to protecting the country's water towers as a means of increasing the country's access to clean water. It has financed numerous environmental organizations, such as UNEP, to help plant trees in order to increase the country's forest cover.

These activities have helped the corporation demonstrate its dedication to environmental conservation (Weber & Wasieleski 2018). It demonstrates that the company is not only interested in producing money, but also in the environment and the community.

Determining the Selection of Corporate Social Responsibility in Contemporary Society

Haski-Leventhal (2018) says that when engaging in corporate social responsibility, it is crucial for management to make a proper choice regarding the sponsored activity. The chosen activity should always be determined by the prevailing socioeconomic and environmental concerns. It is usually good to choose the problem that is of utmost importance to the populace. During the recent earthquake in Japan, which was followed by numerous other severe calamities, many people perished and others were rendered homeless (Leal 2019). Numerous Japanese firms, like as Toyota Motors, focused on humanitarian efforts to assist afflicted families in returning to normalcy.

Izzo and Vanderwielen (2018) contend that engaging in such activities during a crisis frequently has a substantial effect on the affected group and the company's brand. Donations from such a company assist affected individuals in meeting their fundamental necessities. Due to the extensive media coverage of such events, the company's generosity would be extensively disseminated. The local and international community would be reminded of the company's dedication to assisting those in need. Those that receive direct assistance from the company would develop brand loyalty several years after the tragedy. They will remember that the company assisted them at a time of need, and as a result, they have a duty to contribute to its growth in the event that similar situations arise in the future.

In addition to focusing on their market activities, businesses are also concentrating on issues directly relevant to their operations. The majority of manufacturing companies are concentrating on environmental measures (Weber & Wasieleski 2018). According to Lenssen and Smith (2019), environmental groups have identified the industrial sector as the primary source of air, water, and land pollutants. Companies' effluents find their way into pristine water, affecting aquatic life.

Additionally, the industry is responsible for the enormous release of greenhouse gases. These companies have developed CSR efforts in an effort to reduce their environmental effect. They have funded tree-planting activities to aid in air purification and environmental sustainability (Bainbridge & Henderson 2018). On the other side, financial institutions have supported educational programs to promote a financially independent community.

Theoretical Structure

When analyzing the topic of corporate social responsibility, it is essential to examine the underlying theoretical frameworks in order to comprehend why companies invest in such projects. Carroll's four-tiered CSR pyramid is one of the prevalent theories that explains the underlying motivations of multinational firms when implementing such programs. It determines responsibility levels depending on their value to the organization. At the base of the pyramid are economic requirements. A company has a duty to its shareholders. Its survival hinges on its capacity to regularly generate money. Such initiatives are meant to

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Abstract

Corporate social responsibility is one of the marketing methods a company can employ to promote its brand. The purpose of this report was to investigate how corporations around the world carry out their corporate social responsibility. The researcher chose Alibaba Group Holding Limited in order to better comprehend how some Chinese corporations perform CSR efforts.

The objective was to compare the best worldwide practices with what is done in China in order to suggest particular areas that local enterprises should adopt in order to increase the effectiveness of such efforts. The researcher gathered secondary source data. These included freshly published books, journal articles, and company websites. Other credible online sites proved useful to the research as well. The lack of time prevented the collection of primary data from Alibaba Group Holding Limited's personnel in order to better understand the company's present procedures.

The analysis revealed that the majority of Chinese corporations must alter their approach to corporate social responsibility. Evidently, some of these companies engage in this practice to develop a market image or to comply with specific rules. The research indicates that CSR can only be successful if a company is committed to achieving a certain objective. A effort that involves planting trees in a day but fails to maintain them is worthless. Without watering and care, the seedlings will die, negating the primary objective of increasing the vegetative cover in a particular region of the country. The report recommends that businesses choose projects whose prices are within their financial means and remain dedicated to guaranteeing their success.

Introduction

Alibaba Group Holding Limited is one of China's most prominent merchants. Jack Ma and Peng Lei launched the company in 1999, and since then it has achieved remarkable success on the Chinese local market (Epstein & Rejc 2014). They observed that the demand for things sold online was increasing. Due to the expansion of the market over the previous decade, the number of online merchants has expanded dramatically over the past decade (Crowther & Seifi 2018).

On the local market, Alibaba Group must compete against significant worldwide brands. Alexander (2015) says that a company's capacity to attract and retain a loyal client base is dependent on more than just providing the greatest items at the lowest prices. Developing non-commercial ties with the local community is also crucial. As a result, numerous businesses are currently investing a substantial amount of resources in corporate social responsibility (CSR).

Giving back to the community is one of the most effective methods for a company to express its dedication to the local community. It demonstrates that the corporation is concerned not only with maximizing profits but also with addressing societal issues. According to Di, Chymis, and D&amp

Resolving these issues reduces the burden on society and enhances the relationship between the company and its prospective clients. It strengthens a company's brand in the marketplace. In this article, the researcher will examine how corporations around the world engage in corporate social responsibility and what Alibaba Group's management can do to adopt best practices in this field. Through this study, it will be possible to comprehend Alibaba Group's present efforts to give back to the community, to identify potential flaws and to recommend ways to enhance them.

Research Concerns

The focus of the study was on the corporate social responsibility practices of various corporations in various parts of the world. The scholar was also interested in determining what Chinese businesses should do to ensure that their CSR had a substantial influence on the environment, society, or any other target area. This indicates that they must abandon their current method and adopt fresh strategies. The researcher was required to answer the following questions in order to conduct this investigation.

What factors led to organizational change, and what was the aim of the transformation? Who were the involved stakeholders, and what part did they play in the transformation process? Using applicable theory and/or a framework, describe the organizational change process. How has the shifting organizational context impacted the implemented changes? How would the researcher evaluate the change's results?

Objectives of Study

When addressing the preceding inquiry, the researcher was also interested in reaching particular objectives. The researcher deemed it vital to establish certain objectives that needed to be attained throughout the investigation. It was important to accomplish the following goals:

To discuss the leadership's involvement in this organizational transformation. To examine the challenges of organizational culture change.

Literature Review

In the preceding chapter, the researcher offered a comprehensive overview of the subject being investigated. The chapter described the significance of the issue and the objectives that should be attained following completion. This chapter will focus on a review of the relevant literature. Corporate social responsibility is a subject that has garnered the interest of numerous experts over the past several decades (Farache et al. 2019). As a result, it is essential to analyze the findings of other researchers and the knowledge gaps that require more study.

The evaluation assists in eliminating instances of redundant information. In this study, the researcher will examine how corporations in various parts of the world have implemented CSR initiatives. The chapter will also examine the application of theories to CSR initiatives. It will aid in the justification of actions done by these companies to promote the welfare of the targeted community.

Companies around the world can no longer overlook corporate social responsibility in their corporate objectives. In the current competitive business environment, advertising alone is insufficient to strengthen a company's brand. According to Baskaran (2016), audiences frequently see advertisements as unpleasant intrusions. Consequently, people would disregard such advertisements.

Corporate social responsibility is one of the innovative brand-promotion strategies that businesses are currently implementing. The initiative enables a company to engage in a non-commercial activity aimed at protecting the environment or enhancing the social welfare of the targeted group (Bainbridge & Henderson 2016). Often, undertaking such programs displays a company's dedication to enhancing the social and economic structure of a nation.

Corporate Social Responsibility Around the World

The concept of corporate social responsibility has become a normal practice for businesses across the globe. According to Bainbridge and Henderson (2018), companies did not felt obligated to engage in such humanitarian efforts in the past. However, the influence of corporate entities on people and the environment is becoming increasingly apparent, and businesses recognize the necessity of addressing the issue (Kurtz & Boone 2014).

Companies in the food industry have been criticized for failing to safeguard their customers from harmful preservatives in calories. The manufacturing industry is responsible for vast amounts of soil, air, and water pollution. Some of these contaminants cause diseases such as cancer and respiratory issues (Izzo & Vanderwielen 2018). As these businesses attempt to streamline their operations in an effort to lessen their environmental impact, they have a responsibility to society. Corporate social responsibility has become a fundamental obligation that must be carried out with great effectiveness.

International Business Machines Corporation, commonly referred to as IBM, is a global American corporation with headquarters in Armonk, New York (Little 2014). The company has a global reputation as one of the Fortune 500 companies that has made a major investment in the education industry. According to a report by UNESCO, the corporation was one of the greatest supporters to educational initiatives between 2011 and 2013.

During this time span, the corporation contributed more than $ 144 million to fund the education of students in the United States and other countries. The company thinks that empowering youth through education is one of the means of combating global poverty in both developed and developing economies (Lenssen & Smith 2019). The corporation has worked closely with UNESCO and numerous non-governmental organizations in the United States and developing nations to guarantee that their donations reach their intended recipients. Banco Santander of Spain and GlaxoSmithKline are two additional prominent educational program donors.

British Petroleum is one of the world's largest petroleum corporations. According to Leal (2019), the corporation has been accused of engaging in harmful environmental practices. The corporation has been actively involved in corporate social responsibility as a measure to fight such narratives. Each fiscal year, the corporation invests millions of dollars to promote environmental programs. It has collaborated closely with the United Nations Environment Program (UNEP), the United Nations Human Settlements Program, and a number of other government and non-government organizations to conserve the environment. As a means of reducing the amount of carbon dioxide in the atmosphere, the company has invested in programs such as tree planting and the preservation of native vegetation (Leal 2019).

Major oil and gas businesses, such as ExxonMobil and Shell, have also contributed to environmental organizations in an effort to combat climate change. Litow (2018) adds that for a long time, petroleum companies resisted the concept of global warming and climate change. Emerging environmental concerns, such as melting polar ice and a rise in storms, prolonged drought in many regions of the world, and flooding, have compelled them to face reality.

Toyota Motor Corporation is a Japanese automobile manufacturer based in Toyota, Aichi Prefecture (Haski-Leventhal 2018). As the largest automaker in the world, the firm has stayed devoted to a variety of programs designed to improve the social welfare of its customers and the general public. Its corporate social responsibility projects extend beyond Japan to other regions of the globe. The organization has designed a CSR program with three sides, based on the three pillars of sustainability, as indicated in Figure 1. There are social, environmental, and economic considerations.

The corporation has supported educational programs for children in Africa and portions of Asia, which are rising economies. Numerous environmental programs have been supported in Japan, South America, and areas of Africa. The company believes it can change the world by fostering workplace diversity as a means of combating racism and cultural intolerance in various parts of the globe. Such measures have endeared the business to the international market. Boren (2016) contends that Toyota is one of the most popular automobile brands in both developed and emerging nations worldwide.

Figure 1: Toyota's CSR endeavors (Weber & Wasieleski 2018).

Tata Motors is one of India's leading automobile manufacturers. Frequently, the corporation sets aside a certain amount of money for certain corporate social responsibility projects. The safeguarding of water towers to guarantee the availability of clean water for domestic, industrial, and agricultural usage is one of the country's most pressing concerns (Weber & Wasieleski 2018). Tata Motors has always been committed to protecting the country's water towers as a means of increasing the country's access to clean water. It has financed numerous environmental organizations, such as UNEP, to help plant trees in order to increase the country's forest cover.

These activities have helped the corporation demonstrate its dedication to environmental conservation (Weber & Wasieleski 2018). It demonstrates that the company is not only interested in producing money, but also in the environment and the community.

Determining the Selection of Corporate Social Responsibility in Contemporary Society

Haski-Leventhal (2018) says that when engaging in corporate social responsibility, it is crucial for management to make a proper choice regarding the sponsored activity. The chosen activity should always be determined by the prevailing socioeconomic and environmental concerns. It is usually good to choose the problem that is of utmost importance to the populace. During the recent earthquake in Japan, which was followed by numerous other severe calamities, many people perished and others were rendered homeless (Leal 2019). Numerous Japanese firms, like as Toyota Motors, focused on humanitarian efforts to assist afflicted families in returning to normalcy.

Izzo and Vanderwielen (2018) contend that engaging in such activities during a crisis frequently has a substantial effect on the affected group and the company's brand. Donations from such a company assist affected individuals in meeting their fundamental necessities. Due to the extensive media coverage of such events, the company's generosity would be extensively disseminated. The local and international community would be reminded of the company's dedication to assisting those in need. Those that receive direct assistance from the company would develop brand loyalty several years after the tragedy. They will remember that the company assisted them at a time of need, and as a result, they have a duty to contribute to its growth in the event that similar situations arise in the future.

In addition to focusing on their market activities, businesses are also concentrating on issues directly relevant to their operations. The majority of manufacturing companies are concentrating on environmental measures (Weber & Wasieleski 2018). According to Lenssen and Smith (2019), environmental groups have identified the industrial sector as the primary source of air, water, and land pollutants. Companies' effluents find their way into pristine water, affecting aquatic life.

Additionally, the industry is responsible for the enormous release of greenhouse gases. These companies have developed CSR efforts in an effort to reduce their environmental effect. They have funded tree-planting activities to aid in air purification and environmental sustainability (Bainbridge & Henderson 2018). On the other side, financial institutions have supported educational programs to promote a financially independent community.

Theoretical Structure

When analyzing the topic of corporate social responsibility, it is essential to examine the underlying theoretical frameworks in order to comprehend why companies invest in such projects. Carroll's four-tiered CSR pyramid is one of the prevalent theories that explains the underlying motivations of multinational firms when implementing such programs. It determines responsibility levels depending on their value to the organization. At the base of the pyramid are economic requirements. A company has a duty to its shareholders. Its survival hinges on its capacity to regularly generate money. Such initiatives are meant to

Primerica: Strategy And Statements Analysis Instant Essay Help

Table of Contents
Executive Synopsis Introduction to Strategic Assessment Analysis of Principal Competitive Strategies Future Prospects Conclusion Bibliography

Executive Synopsis

This report examined Southwest Airlines' performance using a PEST and SWOT analysis-based methodology. The report's findings revealed that the business exerts extraordinary efforts to fulfill its objectives, which are to maintain market competitiveness, minimize operational expenses, and grow profits. The PEST analysis indicated that the business takes into account a variety of demographic, economic, environmental, political, legal, informational, social, and technological variables in its operations. Southwest Airlines's SWOT analysis identified its strengths, weaknesses, opportunities, and threats. Evaluation of the competing strategies revealed that their implementation is beneficial and should be continued.

Introduction

Due to the rapid expansion of economic ties in the modern day, a great number of businesses employ unique techniques to achieve a dominant market position. As a result, methods such as PEST and SWOT assessments are utilized to evaluate the effectiveness of the applied initiatives. Political, Economic, Social, and Technological (PEST) analysis is a strategy used to "understand strategic risks and identify the effects of the external macro-environment on a firm's competitive position" (Sammut-Bonnici and Galea, 2015, p. 1). SWOT analysis is a technique that identifies an organization's weaknesses, strengths, opportunities, and threats that may impact its projects, people, or products (Dergisi, 2017). This paper provides a strategic analysis of Southwest Airlines using the PEST and SWOT frameworks. Southwest Airlines is a large American airline that was created in 1962 and "has expanded from a regional carrier with four aircraft to one with more than 500 aircraft" (Jackson and Jackson, 2009, p. 67). The analysis contains an examination of the components of the employed approaches, an evaluation of the important strategies, a discussion of the organization's future prospects, and a conclusion.

Strategic Evaluation

PEST analysis, which is based on the DEEPLIST methodology, will be employed as the first technique in this study. The objective of a DEEPLIST analysis is to investigate the demographic, economic, environmental/ecological, political, legal, informational, social, and technological variables that constitute the foundation of every business environment. There are two primary demographic characteristics that affect the demand for air travel. These causes include "the expanding population and their attitudes toward air travel" (Addepalli et al., 2018, p. 6). According to social study undertaken by John Heimlich, Vice President of the organization Airlines for America, the number of Americans who travel by air is increasing. From 1971 to 2015, the proportion of US adults who traveled by flight increased from 49 to 81 percent (Heimlich, 2016). The population of the United States has increased by more than 150 million over a span of 64 years (USA Demographics, 2019). Consequently, the country's demographics favor both the advancement of the civil aviation business in the United States in general and the growth of Southwest Airlines in particular.

The economic climate of the nation is a further variable that influences Southwest Airlines' performance. If the state's economy is unstable, it may have negative effects for the airlines. Thus, the 2008 financial crisis had a detrimental influence on the aviation business, as the number of people who traveled for leisure activities declined dramatically (Jackson and Jackson, 2009). Moreover, economic crises may also cause fluctuations in the value of the dollar, resulting in an increase in fuel prices and additional company expenses. Unfortunately, it is difficult to prevent airline firms from experiencing economic challenges, and the only way to deal with them is to offer specials and discounts to attract more clients.

Southwest Airlines is able to attract new customers and earn their trust in part by adhering to an environmentally responsible policy. The corporation aggressively implements this policy as a financial contribution to environmental conservation. Thus, the organization pledged $175 million for the development of the Required Navigation Performance system, which enables airplanes to fly more direct routes (Jackson and Jackson, 2009). It helps to decrease air pollution and fuel consumption.

The political environment plays an important impact in the aviation business, as countries with adverse political conditions may impose flying limitations. In a politically insecure location with a war component, for instance, planes may be canceled for security concerns. It results in the loss of clients and, consequently, a decline in profitability. As a result of international confrontations between multiple states, a similar circumstance may emerge. Since the bulk of flights handled by Southwest Airlines are domestic, the likelihood that the firm will encounter political concerns is limited. The international flights are conducted in partnership with other airlines and largely encompass travel to only adjacent nations, such as Canada or Mexico (Jackson and Jackson, 2009). Therefore, even if the political situation between the United States and its neighbors worsens, the company's losses will be low.

The law imposes a number of restrictions and prohibitions on the aviation industry. Thus, the law of the United States controls all areas of airline operation, including commercial space transportation, civil aviation accidents, airport safety, baggage carriage, and more (USA: Aviation law, 2019). Southwest Airlines complies with the law in all element of its operations, and the company has never been involved in any significant legal procedures for breaking the law.

As for informational factors, the company's policy is one of transparency. The company's history, economic status, management techniques, and participation in social projects can be found in abundance on the internet, in research publications, periodicals, and journals, among other sources. In addition, the carrier makes extensive use of contemporary information technologies, such as social media and its official website, as additional online networking platforms. Consequently, passengers may use the company's website to ask questions about their trips, book flights, and discuss their experiences flying with Southwest Airlines. In addition, the airline maintains social media sites, such as Facebook and Twitter, that attempt to give rapid responses to customer inquiries and complaints and to update flight information.

The relationship between the informational and social sides of the company's activity is close. Observing the most often asked questions, complaints, and feedback from travelers benefits the organization in determining its consumers' needs. It also helps to comprehend their reaction and attitude toward the innovations and changes that Southwest Airlines does. The organization's attitude towards its employees exhibits an additional social direction. Thus, Southwest Airlines prioritizes employee satisfaction, as evidenced by the fact that "their compensations are the highest in the industry" (Jackson and Jackson, 2009, p.75). Therefore, the corporation exerts significant effort to please both its personnel and its customers.

Today, as a result of the evolution of current technology, it is essential for aviation companies to update their fleets to accommodate technological advancements. As for Southwest Airlines, it is not in the company's interest to ever change its aircraft type, the Boeing 737. However, the airline strives to improve its fleet by introducing important features, such as Blended Winglets, which increase the aircraft's efficiency (Jackson and Jackson, 2009). In addition, the company's usage of only one type of equipment contributes to favorable outcomes. Thus, it helps "various operations such as the stock of spares or mechanical and operational training" and improves equipment understanding (Zapata, 2012, p. 210). Therefore, the corporation takes reasonable steps to enhance the quality of its service and boost the effectiveness of its employed aircraft.

The SWOT analysis comprises a study of the company's strengths, weaknesses, opportunities, and threats. Southwest Airlines' primary strengths are its strong financial position, brand recognition, and low-cost transportation services. Indeed, as a key participant in the aviation business, Southwest Airlines was able to establish a big client base, which ensured the company's financial stability. Low-priced travel makes up for the absence of meals and entertainment aboard airplanes. Numerous steps taken by the airline to enhance its services and give passengers with comfortable and affordable travel boosted its popularity and brand recognition.

The company's limitations include its underrepresentation in the worldwide aviation market and its reliance on a single aircraft model. The lack of flights to many overseas destinations restricts the airline's ability to increase profits. Despite the benefits of using a single type of aircraft, there are also significant disadvantages. Consequently, Southwest Airlines is reliant on its manufacturer. For instance, if the price of Boeing 737 parts rises, the company will still have to purchase them because there are no other alternatives for continuing flying operations.

In light of the company's flaws, it is legitimate to recommend options that Southwest Airlines should pursue. Thus, one of the options is to expand the organization's services and establish a presence on the international market. Partnerships with international airlines and membership in aviation alliances can serve as good means for carrying out this mission. Another option is to consider collaborating with other aircraft manufacturers in order to be independent and have the option to select from various transportation equipment.

Southwest Airlines has two key threats: growing fuel prices and the rise of numerous low-cost carriers that compete with the corporation. Unfortunately, the quick increase in fuel prices makes it difficult for the company to maintain affordable flight fares. There are not many opportunities to reduce costs, as the company does not offer any additional services, such as lunch service or on-board movies. New low-cost carriers, including Spirit Airlines, JetBlue, Frontier Airlines, and others, have further exacerbated the situation.

In general, the company is utilizing its capabilities effectively as it strives to maintain its low-cost reputation and increase brand recognition. However, Southwest Airlines does not fix its flaws, missing opportunities to penetrate the international market and partner with various manufacturers. It is fair to say that the carrier seeks every means to combat its primary threats, minimize costs, and maintain its dominant market position.

Analysis of Principal Competitive Strategies

Two key competitive tactics have been explored by the corporation. Southwest Airlines depends on Porter's Model for its first strategy. This approach involves the development of a cost-based competitive advantage. Therefore, in order to remain competitive, the corporation "minimizes operating costs, optimizes profit margins, maintains low prices, and provides airline services to the mass market" (Evans, 2019, para.3). The carrier is effectively implementing this plan despite rising challenges, including as the emergence of new low-cost carriers and the rise in fuel prices. Therefore, Southwest Airlines makes long-term contracts with fuel suppliers to decrease operating expenses and maintain low rates (Jackson and Jackson, 2009). To attract more consumers and remain competitive, the company promotes the fact that it offers the lowest prices while keeping the highest quality in its advertisements.

The company's employee orientation policy is another tactic that enables it to remain competitive. Therefore, the company compensates its employees with generous remuneration and social benefits. In spite of the fact that it may appear illogical to pay high salaries at a company that strives to save expenses, it actually helps to avoid some emergent issues. The employee orientation technique allows Southwest Airlines to reduce training costs for new employees. Because the company has "the lowest turnover rate in the industry, approximately 4.5% per year" (Jackson and Jackson, 2009, p.75). Therefore, the results of the evaluation indicate that the implementation of strategies is effective, as it reduces costs and increases employee satisfaction.

Future Prospects

Given the preceding information, it is reasonable to conclude that the company's future prospects are highly promising. Consequently, the airline has been the most lucrative in recent years and is "the only major airline that has not declared bankruptcy" (Ballard, 2019, para. 9). It demonstrates that the company's tactics are effective and should be pushed further to sustain the organization's competitive edge. Therefore, the primary recommendation that can be made to solve growing issues is to adhere to the current plans and work principles in the future. However, it is also vital to pay close attention to new trends and transformations in the aviation business in order to adapt the company's strategy to the shifts. Additionally, it is suggested that Southwest Airlines expand in order to occupy the foreign market and improve the organization's profits.

Conclusion

Southwest Airlines is a formidable firm that holds a prominent place in the aviation market, as may be deduced. The PEST and SWOT assessments demonstrated that the successful performance of the carrier is ensured by an effective policy based on a variety of elements, such as demography, economy, politics, and others. In addition, the analysis found that the company should take advantage of the opportunity to extend its services and launch foreign flights, as well as contemplate the purchase of a variety of equipment. At the conclusion of the report, three recommendations were made, namely, maintaining current strategies, paying close attention to new aviation trends, and entering the worldwide market.

Bibliography

S. Addepalli et al., "Socio-economic and demographic factors that contribute to the growth of the civil aviation industry," Procedia Manufacturing, vol. 19, pp. 2–9, 2018.

Ballard, J. (2019) Where do you see Southwest Airlines 10 years from now? Web.

The Journal of International Social Research, 10(51), pp. 994–1006. Dergisi, U. (2017). "SWOT analysis: A theoretical review."

Southwest Airlines generic strategy, aggressive expansion plans, and competitive advantage. Web.

Heimlich, J. (2016). Air travel status in the United States. [PowerPoint presentation], IPSOS Public Affairs: The Social Research and Corporate Reputation Specialists. Web.

Jackson, W., and Jackson, M. (2009), "Southwest Airlines: The next fight begins," Journal of the International Academy of Case Studies, vol. 15, no. 7, pp. 65–81.

Sammut-Bonnici, T., and Galea, D. (2014). "PEST analysis," in Wiley encyclopedia of management, edited by S.C. Cooper. John Wiley and Sons, New York

United States Population (2019). Web.

2019 Aviation law in the US (2019). Web.

Zapata, C. (2012). "Engineering and strategy: Returning to the case of Southwest Airlines," Gerencia y Gestión, pp. 198–217.

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Primerica: Strategy And Statements Analysis Instant Essay Help

Table of Contents
Executive Synopsis Introduction to Strategic Assessment Analysis of Principal Competitive Strategies Future Prospects Conclusion Bibliography

Executive Synopsis

This report examined Southwest Airlines' performance using a PEST and SWOT analysis-based methodology. The report's findings revealed that the business exerts extraordinary efforts to fulfill its objectives, which are to maintain market competitiveness, minimize operational expenses, and grow profits. The PEST analysis indicated that the business takes into account a variety of demographic, economic, environmental, political, legal, informational, social, and technological variables in its operations. Southwest Airlines's SWOT analysis identified its strengths, weaknesses, opportunities, and threats. Evaluation of the competing strategies revealed that their implementation is beneficial and should be continued.

Introduction

Due to the rapid expansion of economic ties in the modern day, a great number of businesses employ unique techniques to achieve a dominant market position. As a result, methods such as PEST and SWOT assessments are utilized to evaluate the effectiveness of the applied initiatives. Political, Economic, Social, and Technological (PEST) analysis is a strategy used to "understand strategic risks and identify the effects of the external macro-environment on a firm's competitive position" (Sammut-Bonnici and Galea, 2015, p. 1). SWOT analysis is a technique that identifies an organization's weaknesses, strengths, opportunities, and threats that may impact its projects, people, or products (Dergisi, 2017). This paper provides a strategic analysis of Southwest Airlines using the PEST and SWOT frameworks. Southwest Airlines is a large American airline that was created in 1962 and "has expanded from a regional carrier with four aircraft to one with more than 500 aircraft" (Jackson and Jackson, 2009, p. 67). The analysis contains an examination of the components of the employed approaches, an evaluation of the important strategies, a discussion of the organization's future prospects, and a conclusion.

Strategic Evaluation

PEST analysis, which is based on the DEEPLIST methodology, will be employed as the first technique in this study. The objective of a DEEPLIST analysis is to investigate the demographic, economic, environmental/ecological, political, legal, informational, social, and technological variables that constitute the foundation of every business environment. There are two primary demographic characteristics that affect the demand for air travel. These causes include "the expanding population and their attitudes toward air travel" (Addepalli et al., 2018, p. 6). According to social study undertaken by John Heimlich, Vice President of the organization Airlines for America, the number of Americans who travel by air is increasing. From 1971 to 2015, the proportion of US adults who traveled by flight increased from 49 to 81 percent (Heimlich, 2016). The population of the United States has increased by more than 150 million over a span of 64 years (USA Demographics, 2019). Consequently, the country's demographics favor both the advancement of the civil aviation business in the United States in general and the growth of Southwest Airlines in particular.

The economic climate of the nation is a further variable that influences Southwest Airlines' performance. If the state's economy is unstable, it may have negative effects for the airlines. Thus, the 2008 financial crisis had a detrimental influence on the aviation business, as the number of people who traveled for leisure activities declined dramatically (Jackson and Jackson, 2009). Moreover, economic crises may also cause fluctuations in the value of the dollar, resulting in an increase in fuel prices and additional company expenses. Unfortunately, it is difficult to prevent airline firms from experiencing economic challenges, and the only way to deal with them is to offer specials and discounts to attract more clients.

Southwest Airlines is able to attract new customers and earn their trust in part by adhering to an environmentally responsible policy. The corporation aggressively implements this policy as a financial contribution to environmental conservation. Thus, the organization pledged $175 million for the development of the Required Navigation Performance system, which enables airplanes to fly more direct routes (Jackson and Jackson, 2009). It helps to decrease air pollution and fuel consumption.

The political environment plays an important impact in the aviation business, as countries with adverse political conditions may impose flying limitations. In a politically insecure location with a war component, for instance, planes may be canceled for security concerns. It results in the loss of clients and, consequently, a decline in profitability. As a result of international confrontations between multiple states, a similar circumstance may emerge. Since the bulk of flights handled by Southwest Airlines are domestic, the likelihood that the firm will encounter political concerns is limited. The international flights are conducted in partnership with other airlines and largely encompass travel to only adjacent nations, such as Canada or Mexico (Jackson and Jackson, 2009). Therefore, even if the political situation between the United States and its neighbors worsens, the company's losses will be low.

The law imposes a number of restrictions and prohibitions on the aviation industry. Thus, the law of the United States controls all areas of airline operation, including commercial space transportation, civil aviation accidents, airport safety, baggage carriage, and more (USA: Aviation law, 2019). Southwest Airlines complies with the law in all element of its operations, and the company has never been involved in any significant legal procedures for breaking the law.

As for informational factors, the company's policy is one of transparency. The company's history, economic status, management techniques, and participation in social projects can be found in abundance on the internet, in research publications, periodicals, and journals, among other sources. In addition, the carrier makes extensive use of contemporary information technologies, such as social media and its official website, as additional online networking platforms. Consequently, passengers may use the company's website to ask questions about their trips, book flights, and discuss their experiences flying with Southwest Airlines. In addition, the airline maintains social media sites, such as Facebook and Twitter, that attempt to give rapid responses to customer inquiries and complaints and to update flight information.

The relationship between the informational and social sides of the company's activity is close. Observing the most often asked questions, complaints, and feedback from travelers benefits the organization in determining its consumers' needs. It also helps to comprehend their reaction and attitude toward the innovations and changes that Southwest Airlines does. The organization's attitude towards its employees exhibits an additional social direction. Thus, Southwest Airlines prioritizes employee satisfaction, as evidenced by the fact that "their compensations are the highest in the industry" (Jackson and Jackson, 2009, p.75). Therefore, the corporation exerts significant effort to please both its personnel and its customers.

Today, as a result of the evolution of current technology, it is essential for aviation companies to update their fleets to accommodate technological advancements. As for Southwest Airlines, it is not in the company's interest to ever change its aircraft type, the Boeing 737. However, the airline strives to improve its fleet by introducing important features, such as Blended Winglets, which increase the aircraft's efficiency (Jackson and Jackson, 2009). In addition, the company's usage of only one type of equipment contributes to favorable outcomes. Thus, it helps "various operations such as the stock of spares or mechanical and operational training" and improves equipment understanding (Zapata, 2012, p. 210). Therefore, the corporation takes reasonable steps to enhance the quality of its service and boost the effectiveness of its employed aircraft.

The SWOT analysis comprises a study of the company's strengths, weaknesses, opportunities, and threats. Southwest Airlines' primary strengths are its strong financial position, brand recognition, and low-cost transportation services. Indeed, as a key participant in the aviation business, Southwest Airlines was able to establish a big client base, which ensured the company's financial stability. Low-priced travel makes up for the absence of meals and entertainment aboard airplanes. Numerous steps taken by the airline to enhance its services and give passengers with comfortable and affordable travel boosted its popularity and brand recognition.

The company's limitations include its underrepresentation in the worldwide aviation market and its reliance on a single aircraft model. The lack of flights to many overseas destinations restricts the airline's ability to increase profits. Despite the benefits of using a single type of aircraft, there are also significant disadvantages. Consequently, Southwest Airlines is reliant on its manufacturer. For instance, if the price of Boeing 737 parts rises, the company will still have to purchase them because there are no other alternatives for continuing flying operations.

In light of the company's flaws, it is legitimate to recommend options that Southwest Airlines should pursue. Thus, one of the options is to expand the organization's services and establish a presence on the international market. Partnerships with international airlines and membership in aviation alliances can serve as good means for carrying out this mission. Another option is to consider collaborating with other aircraft manufacturers in order to be independent and have the option to select from various transportation equipment.

Southwest Airlines has two key threats: growing fuel prices and the rise of numerous low-cost carriers that compete with the corporation. Unfortunately, the quick increase in fuel prices makes it difficult for the company to maintain affordable flight fares. There are not many opportunities to reduce costs, as the company does not offer any additional services, such as lunch service or on-board movies. New low-cost carriers, including Spirit Airlines, JetBlue, Frontier Airlines, and others, have further exacerbated the situation.

In general, the company is utilizing its capabilities effectively as it strives to maintain its low-cost reputation and increase brand recognition. However, Southwest Airlines does not fix its flaws, missing opportunities to penetrate the international market and partner with various manufacturers. It is fair to say that the carrier seeks every means to combat its primary threats, minimize costs, and maintain its dominant market position.

Analysis of Principal Competitive Strategies

Two key competitive tactics have been explored by the corporation. Southwest Airlines depends on Porter's Model for its first strategy. This approach involves the development of a cost-based competitive advantage. Therefore, in order to remain competitive, the corporation "minimizes operating costs, optimizes profit margins, maintains low prices, and provides airline services to the mass market" (Evans, 2019, para.3). The carrier is effectively implementing this plan despite rising challenges, including as the emergence of new low-cost carriers and the rise in fuel prices. Therefore, Southwest Airlines makes long-term contracts with fuel suppliers to decrease operating expenses and maintain low rates (Jackson and Jackson, 2009). To attract more consumers and remain competitive, the company promotes the fact that it offers the lowest prices while keeping the highest quality in its advertisements.

The company's employee orientation policy is another tactic that enables it to remain competitive. Therefore, the company compensates its employees with generous remuneration and social benefits. In spite of the fact that it may appear illogical to pay high salaries at a company that strives to save expenses, it actually helps to avoid some emergent issues. The employee orientation technique allows Southwest Airlines to reduce training costs for new employees. Because the company has "the lowest turnover rate in the industry, approximately 4.5% per year" (Jackson and Jackson, 2009, p.75). Therefore, the results of the evaluation indicate that the implementation of strategies is effective, as it reduces costs and increases employee satisfaction.

Future Prospects

Given the preceding information, it is reasonable to conclude that the company's future prospects are highly promising. Consequently, the airline has been the most lucrative in recent years and is "the only major airline that has not declared bankruptcy" (Ballard, 2019, para. 9). It demonstrates that the company's tactics are effective and should be pushed further to sustain the organization's competitive edge. Therefore, the primary recommendation that can be made to solve growing issues is to adhere to the current plans and work principles in the future. However, it is also vital to pay close attention to new trends and transformations in the aviation business in order to adapt the company's strategy to the shifts. Additionally, it is suggested that Southwest Airlines expand in order to occupy the foreign market and improve the organization's profits.

Conclusion

Southwest Airlines is a formidable firm that holds a prominent place in the aviation market, as may be deduced. The PEST and SWOT assessments demonstrated that the successful performance of the carrier is ensured by an effective policy based on a variety of elements, such as demography, economy, politics, and others. In addition, the analysis found that the company should take advantage of the opportunity to extend its services and launch foreign flights, as well as contemplate the purchase of a variety of equipment. At the conclusion of the report, three recommendations were made, namely, maintaining current strategies, paying close attention to new aviation trends, and entering the worldwide market.

Bibliography

S. Addepalli et al., "Socio-economic and demographic factors that contribute to the growth of the civil aviation industry," Procedia Manufacturing, vol. 19, pp. 2–9, 2018.

Ballard, J. (2019) Where do you see Southwest Airlines 10 years from now? Web.

The Journal of International Social Research, 10(51), pp. 994–1006. Dergisi, U. (2017). "SWOT analysis: A theoretical review."

Southwest Airlines generic strategy, aggressive expansion plans, and competitive advantage. Web.

Heimlich, J. (2016). Air travel status in the United States. [PowerPoint presentation], IPSOS Public Affairs: The Social Research and Corporate Reputation Specialists. Web.

Jackson, W., and Jackson, M. (2009), "Southwest Airlines: The next fight begins," Journal of the International Academy of Case Studies, vol. 15, no. 7, pp. 65–81.

Sammut-Bonnici, T., and Galea, D. (2014). "PEST analysis," in Wiley encyclopedia of management, edited by S.C. Cooper. John Wiley and Sons, New York

United States Population (2019). Web.

2019 Aviation law in the US (2019). Web.

Zapata, C. (2012). "Engineering and strategy: Returning to the case of Southwest Airlines," Gerencia y Gestión, pp. 198–217.

[supanova question]

Primerica: Strategy And Statements Analysis Instant Essay Help

Table of Contents
Executive Synopsis Introduction to Strategic Assessment Analysis of Principal Competitive Strategies Future Prospects Conclusion Bibliography

Executive Synopsis

This report examined Southwest Airlines' performance using a PEST and SWOT analysis-based methodology. The report's findings revealed that the business exerts extraordinary efforts to fulfill its objectives, which are to maintain market competitiveness, minimize operational expenses, and grow profits. The PEST analysis indicated that the business takes into account a variety of demographic, economic, environmental, political, legal, informational, social, and technological variables in its operations. Southwest Airlines's SWOT analysis identified its strengths, weaknesses, opportunities, and threats. Evaluation of the competing strategies revealed that their implementation is beneficial and should be continued.

Introduction

Due to the rapid expansion of economic ties in the modern day, a great number of businesses employ unique techniques to achieve a dominant market position. As a result, methods such as PEST and SWOT assessments are utilized to evaluate the effectiveness of the applied initiatives. Political, Economic, Social, and Technological (PEST) analysis is a strategy used to "understand strategic risks and identify the effects of the external macro-environment on a firm's competitive position" (Sammut-Bonnici and Galea, 2015, p. 1). SWOT analysis is a technique that identifies an organization's weaknesses, strengths, opportunities, and threats that may impact its projects, people, or products (Dergisi, 2017). This paper provides a strategic analysis of Southwest Airlines using the PEST and SWOT frameworks. Southwest Airlines is a large American airline that was created in 1962 and "has expanded from a regional carrier with four aircraft to one with more than 500 aircraft" (Jackson and Jackson, 2009, p. 67). The analysis contains an examination of the components of the employed approaches, an evaluation of the important strategies, a discussion of the organization's future prospects, and a conclusion.

Strategic Evaluation

PEST analysis, which is based on the DEEPLIST methodology, will be employed as the first technique in this study. The objective of a DEEPLIST analysis is to investigate the demographic, economic, environmental/ecological, political, legal, informational, social, and technological variables that constitute the foundation of every business environment. There are two primary demographic characteristics that affect the demand for air travel. These causes include "the expanding population and their attitudes toward air travel" (Addepalli et al., 2018, p. 6). According to social study undertaken by John Heimlich, Vice President of the organization Airlines for America, the number of Americans who travel by air is increasing. From 1971 to 2015, the proportion of US adults who traveled by flight increased from 49 to 81 percent (Heimlich, 2016). The population of the United States has increased by more than 150 million over a span of 64 years (USA Demographics, 2019). Consequently, the country's demographics favor both the advancement of the civil aviation business in the United States in general and the growth of Southwest Airlines in particular.

The economic climate of the nation is a further variable that influences Southwest Airlines' performance. If the state's economy is unstable, it may have negative effects for the airlines. Thus, the 2008 financial crisis had a detrimental influence on the aviation business, as the number of people who traveled for leisure activities declined dramatically (Jackson and Jackson, 2009). Moreover, economic crises may also cause fluctuations in the value of the dollar, resulting in an increase in fuel prices and additional company expenses. Unfortunately, it is difficult to prevent airline firms from experiencing economic challenges, and the only way to deal with them is to offer specials and discounts to attract more clients.

Southwest Airlines is able to attract new customers and earn their trust in part by adhering to an environmentally responsible policy. The corporation aggressively implements this policy as a financial contribution to environmental conservation. Thus, the organization pledged $175 million for the development of the Required Navigation Performance system, which enables airplanes to fly more direct routes (Jackson and Jackson, 2009). It helps to decrease air pollution and fuel consumption.

The political environment plays an important impact in the aviation business, as countries with adverse political conditions may impose flying limitations. In a politically insecure location with a war component, for instance, planes may be canceled for security concerns. It results in the loss of clients and, consequently, a decline in profitability. As a result of international confrontations between multiple states, a similar circumstance may emerge. Since the bulk of flights handled by Southwest Airlines are domestic, the likelihood that the firm will encounter political concerns is limited. The international flights are conducted in partnership with other airlines and largely encompass travel to only adjacent nations, such as Canada or Mexico (Jackson and Jackson, 2009). Therefore, even if the political situation between the United States and its neighbors worsens, the company's losses will be low.

The law imposes a number of restrictions and prohibitions on the aviation industry. Thus, the law of the United States controls all areas of airline operation, including commercial space transportation, civil aviation accidents, airport safety, baggage carriage, and more (USA: Aviation law, 2019). Southwest Airlines complies with the law in all element of its operations, and the company has never been involved in any significant legal procedures for breaking the law.

As for informational factors, the company's policy is one of transparency. The company's history, economic status, management techniques, and participation in social projects can be found in abundance on the internet, in research publications, periodicals, and journals, among other sources. In addition, the carrier makes extensive use of contemporary information technologies, such as social media and its official website, as additional online networking platforms. Consequently, passengers may use the company's website to ask questions about their trips, book flights, and discuss their experiences flying with Southwest Airlines. In addition, the airline maintains social media sites, such as Facebook and Twitter, that attempt to give rapid responses to customer inquiries and complaints and to update flight information.

The relationship between the informational and social sides of the company's activity is close. Observing the most often asked questions, complaints, and feedback from travelers benefits the organization in determining its consumers' needs. It also helps to comprehend their reaction and attitude toward the innovations and changes that Southwest Airlines does. The organization's attitude towards its employees exhibits an additional social direction. Thus, Southwest Airlines prioritizes employee satisfaction, as evidenced by the fact that "their compensations are the highest in the industry" (Jackson and Jackson, 2009, p.75). Therefore, the corporation exerts significant effort to please both its personnel and its customers.

Today, as a result of the evolution of current technology, it is essential for aviation companies to update their fleets to accommodate technological advancements. As for Southwest Airlines, it is not in the company's interest to ever change its aircraft type, the Boeing 737. However, the airline strives to improve its fleet by introducing important features, such as Blended Winglets, which increase the aircraft's efficiency (Jackson and Jackson, 2009). In addition, the company's usage of only one type of equipment contributes to favorable outcomes. Thus, it helps "various operations such as the stock of spares or mechanical and operational training" and improves equipment understanding (Zapata, 2012, p. 210). Therefore, the corporation takes reasonable steps to enhance the quality of its service and boost the effectiveness of its employed aircraft.

The SWOT analysis comprises a study of the company's strengths, weaknesses, opportunities, and threats. Southwest Airlines' primary strengths are its strong financial position, brand recognition, and low-cost transportation services. Indeed, as a key participant in the aviation business, Southwest Airlines was able to establish a big client base, which ensured the company's financial stability. Low-priced travel makes up for the absence of meals and entertainment aboard airplanes. Numerous steps taken by the airline to enhance its services and give passengers with comfortable and affordable travel boosted its popularity and brand recognition.

The company's limitations include its underrepresentation in the worldwide aviation market and its reliance on a single aircraft model. The lack of flights to many overseas destinations restricts the airline's ability to increase profits. Despite the benefits of using a single type of aircraft, there are also significant disadvantages. Consequently, Southwest Airlines is reliant on its manufacturer. For instance, if the price of Boeing 737 parts rises, the company will still have to purchase them because there are no other alternatives for continuing flying operations.

In light of the company's flaws, it is legitimate to recommend options that Southwest Airlines should pursue. Thus, one of the options is to expand the organization's services and establish a presence on the international market. Partnerships with international airlines and membership in aviation alliances can serve as good means for carrying out this mission. Another option is to consider collaborating with other aircraft manufacturers in order to be independent and have the option to select from various transportation equipment.

Southwest Airlines has two key threats: growing fuel prices and the rise of numerous low-cost carriers that compete with the corporation. Unfortunately, the quick increase in fuel prices makes it difficult for the company to maintain affordable flight fares. There are not many opportunities to reduce costs, as the company does not offer any additional services, such as lunch service or on-board movies. New low-cost carriers, including Spirit Airlines, JetBlue, Frontier Airlines, and others, have further exacerbated the situation.

In general, the company is utilizing its capabilities effectively as it strives to maintain its low-cost reputation and increase brand recognition. However, Southwest Airlines does not fix its flaws, missing opportunities to penetrate the international market and partner with various manufacturers. It is fair to say that the carrier seeks every means to combat its primary threats, minimize costs, and maintain its dominant market position.

Analysis of Principal Competitive Strategies

Two key competitive tactics have been explored by the corporation. Southwest Airlines depends on Porter's Model for its first strategy. This approach involves the development of a cost-based competitive advantage. Therefore, in order to remain competitive, the corporation "minimizes operating costs, optimizes profit margins, maintains low prices, and provides airline services to the mass market" (Evans, 2019, para.3). The carrier is effectively implementing this plan despite rising challenges, including as the emergence of new low-cost carriers and the rise in fuel prices. Therefore, Southwest Airlines makes long-term contracts with fuel suppliers to decrease operating expenses and maintain low rates (Jackson and Jackson, 2009). To attract more consumers and remain competitive, the company promotes the fact that it offers the lowest prices while keeping the highest quality in its advertisements.

The company's employee orientation policy is another tactic that enables it to remain competitive. Therefore, the company compensates its employees with generous remuneration and social benefits. In spite of the fact that it may appear illogical to pay high salaries at a company that strives to save expenses, it actually helps to avoid some emergent issues. The employee orientation technique allows Southwest Airlines to reduce training costs for new employees. Because the company has "the lowest turnover rate in the industry, approximately 4.5% per year" (Jackson and Jackson, 2009, p.75). Therefore, the results of the evaluation indicate that the implementation of strategies is effective, as it reduces costs and increases employee satisfaction.

Future Prospects

Given the preceding information, it is reasonable to conclude that the company's future prospects are highly promising. Consequently, the airline has been the most lucrative in recent years and is "the only major airline that has not declared bankruptcy" (Ballard, 2019, para. 9). It demonstrates that the company's tactics are effective and should be pushed further to sustain the organization's competitive edge. Therefore, the primary recommendation that can be made to solve growing issues is to adhere to the current plans and work principles in the future. However, it is also vital to pay close attention to new trends and transformations in the aviation business in order to adapt the company's strategy to the shifts. Additionally, it is suggested that Southwest Airlines expand in order to occupy the foreign market and improve the organization's profits.

Conclusion

Southwest Airlines is a formidable firm that holds a prominent place in the aviation market, as may be deduced. The PEST and SWOT assessments demonstrated that the successful performance of the carrier is ensured by an effective policy based on a variety of elements, such as demography, economy, politics, and others. In addition, the analysis found that the company should take advantage of the opportunity to extend its services and launch foreign flights, as well as contemplate the purchase of a variety of equipment. At the conclusion of the report, three recommendations were made, namely, maintaining current strategies, paying close attention to new aviation trends, and entering the worldwide market.

Bibliography

S. Addepalli et al., "Socio-economic and demographic factors that contribute to the growth of the civil aviation industry," Procedia Manufacturing, vol. 19, pp. 2–9, 2018.

Ballard, J. (2019) Where do you see Southwest Airlines 10 years from now? Web.

The Journal of International Social Research, 10(51), pp. 994–1006. Dergisi, U. (2017). "SWOT analysis: A theoretical review."

Southwest Airlines generic strategy, aggressive expansion plans, and competitive advantage. Web.

Heimlich, J. (2016). Air travel status in the United States. [PowerPoint presentation], IPSOS Public Affairs: The Social Research and Corporate Reputation Specialists. Web.

Jackson, W., and Jackson, M. (2009), "Southwest Airlines: The next fight begins," Journal of the International Academy of Case Studies, vol. 15, no. 7, pp. 65–81.

Sammut-Bonnici, T., and Galea, D. (2014). "PEST analysis," in Wiley encyclopedia of management, edited by S.C. Cooper. John Wiley and Sons, New York

United States Population (2019). Web.

2019 Aviation law in the US (2019). Web.

Zapata, C. (2012). "Engineering and strategy: Returning to the case of Southwest Airlines," Gerencia y Gestión, pp. 198–217.

[supanova question]

Primerica: Strategy And Statements Analysis Instant Essay Help

Table of Contents
Executive Synopsis Introduction to Strategic Assessment Analysis of Principal Competitive Strategies Future Prospects Conclusion Bibliography

Executive Synopsis

This report examined Southwest Airlines' performance using a PEST and SWOT analysis-based methodology. The report's findings revealed that the business exerts extraordinary efforts to fulfill its objectives, which are to maintain market competitiveness, minimize operational expenses, and grow profits. The PEST analysis indicated that the business takes into account a variety of demographic, economic, environmental, political, legal, informational, social, and technological variables in its operations. Southwest Airlines's SWOT analysis identified its strengths, weaknesses, opportunities, and threats. Evaluation of the competing strategies revealed that their implementation is beneficial and should be continued.

Introduction

Due to the rapid expansion of economic ties in the modern day, a great number of businesses employ unique techniques to achieve a dominant market position. As a result, methods such as PEST and SWOT assessments are utilized to evaluate the effectiveness of the applied initiatives. Political, Economic, Social, and Technological (PEST) analysis is a strategy used to "understand strategic risks and identify the effects of the external macro-environment on a firm's competitive position" (Sammut-Bonnici and Galea, 2015, p. 1). SWOT analysis is a technique that identifies an organization's weaknesses, strengths, opportunities, and threats that may impact its projects, people, or products (Dergisi, 2017). This paper provides a strategic analysis of Southwest Airlines using the PEST and SWOT frameworks. Southwest Airlines is a large American airline that was created in 1962 and "has expanded from a regional carrier with four aircraft to one with more than 500 aircraft" (Jackson and Jackson, 2009, p. 67). The analysis contains an examination of the components of the employed approaches, an evaluation of the important strategies, a discussion of the organization's future prospects, and a conclusion.

Strategic Evaluation

PEST analysis, which is based on the DEEPLIST methodology, will be employed as the first technique in this study. The objective of a DEEPLIST analysis is to investigate the demographic, economic, environmental/ecological, political, legal, informational, social, and technological variables that constitute the foundation of every business environment. There are two primary demographic characteristics that affect the demand for air travel. These causes include "the expanding population and their attitudes toward air travel" (Addepalli et al., 2018, p. 6). According to social study undertaken by John Heimlich, Vice President of the organization Airlines for America, the number of Americans who travel by air is increasing. From 1971 to 2015, the proportion of US adults who traveled by flight increased from 49 to 81 percent (Heimlich, 2016). The population of the United States has increased by more than 150 million over a span of 64 years (USA Demographics, 2019). Consequently, the country's demographics favor both the advancement of the civil aviation business in the United States in general and the growth of Southwest Airlines in particular.

The economic climate of the nation is a further variable that influences Southwest Airlines' performance. If the state's economy is unstable, it may have negative effects for the airlines. Thus, the 2008 financial crisis had a detrimental influence on the aviation business, as the number of people who traveled for leisure activities declined dramatically (Jackson and Jackson, 2009). Moreover, economic crises may also cause fluctuations in the value of the dollar, resulting in an increase in fuel prices and additional company expenses. Unfortunately, it is difficult to prevent airline firms from experiencing economic challenges, and the only way to deal with them is to offer specials and discounts to attract more clients.

Southwest Airlines is able to attract new customers and earn their trust in part by adhering to an environmentally responsible policy. The corporation aggressively implements this policy as a financial contribution to environmental conservation. Thus, the organization pledged $175 million for the development of the Required Navigation Performance system, which enables airplanes to fly more direct routes (Jackson and Jackson, 2009). It helps to decrease air pollution and fuel consumption.

The political environment plays an important impact in the aviation business, as countries with adverse political conditions may impose flying limitations. In a politically insecure location with a war component, for instance, planes may be canceled for security concerns. It results in the loss of clients and, consequently, a decline in profitability. As a result of international confrontations between multiple states, a similar circumstance may emerge. Since the bulk of flights handled by Southwest Airlines are domestic, the likelihood that the firm will encounter political concerns is limited. The international flights are conducted in partnership with other airlines and largely encompass travel to only adjacent nations, such as Canada or Mexico (Jackson and Jackson, 2009). Therefore, even if the political situation between the United States and its neighbors worsens, the company's losses will be low.

The law imposes a number of restrictions and prohibitions on the aviation industry. Thus, the law of the United States controls all areas of airline operation, including commercial space transportation, civil aviation accidents, airport safety, baggage carriage, and more (USA: Aviation law, 2019). Southwest Airlines complies with the law in all element of its operations, and the company has never been involved in any significant legal procedures for breaking the law.

As for informational factors, the company's policy is one of transparency. The company's history, economic status, management techniques, and participation in social projects can be found in abundance on the internet, in research publications, periodicals, and journals, among other sources. In addition, the carrier makes extensive use of contemporary information technologies, such as social media and its official website, as additional online networking platforms. Consequently, passengers may use the company's website to ask questions about their trips, book flights, and discuss their experiences flying with Southwest Airlines. In addition, the airline maintains social media sites, such as Facebook and Twitter, that attempt to give rapid responses to customer inquiries and complaints and to update flight information.

The relationship between the informational and social sides of the company's activity is close. Observing the most often asked questions, complaints, and feedback from travelers benefits the organization in determining its consumers' needs. It also helps to comprehend their reaction and attitude toward the innovations and changes that Southwest Airlines does. The organization's attitude towards its employees exhibits an additional social direction. Thus, Southwest Airlines prioritizes employee satisfaction, as evidenced by the fact that "their compensations are the highest in the industry" (Jackson and Jackson, 2009, p.75). Therefore, the corporation exerts significant effort to please both its personnel and its customers.

Today, as a result of the evolution of current technology, it is essential for aviation companies to update their fleets to accommodate technological advancements. As for Southwest Airlines, it is not in the company's interest to ever change its aircraft type, the Boeing 737. However, the airline strives to improve its fleet by introducing important features, such as Blended Winglets, which increase the aircraft's efficiency (Jackson and Jackson, 2009). In addition, the company's usage of only one type of equipment contributes to favorable outcomes. Thus, it helps "various operations such as the stock of spares or mechanical and operational training" and improves equipment understanding (Zapata, 2012, p. 210). Therefore, the corporation takes reasonable steps to enhance the quality of its service and boost the effectiveness of its employed aircraft.

The SWOT analysis comprises a study of the company's strengths, weaknesses, opportunities, and threats. Southwest Airlines' primary strengths are its strong financial position, brand recognition, and low-cost transportation services. Indeed, as a key participant in the aviation business, Southwest Airlines was able to establish a big client base, which ensured the company's financial stability. Low-priced travel makes up for the absence of meals and entertainment aboard airplanes. Numerous steps taken by the airline to enhance its services and give passengers with comfortable and affordable travel boosted its popularity and brand recognition.

The company's limitations include its underrepresentation in the worldwide aviation market and its reliance on a single aircraft model. The lack of flights to many overseas destinations restricts the airline's ability to increase profits. Despite the benefits of using a single type of aircraft, there are also significant disadvantages. Consequently, Southwest Airlines is reliant on its manufacturer. For instance, if the price of Boeing 737 parts rises, the company will still have to purchase them because there are no other alternatives for continuing flying operations.

In light of the company's flaws, it is legitimate to recommend options that Southwest Airlines should pursue. Thus, one of the options is to expand the organization's services and establish a presence on the international market. Partnerships with international airlines and membership in aviation alliances can serve as good means for carrying out this mission. Another option is to consider collaborating with other aircraft manufacturers in order to be independent and have the option to select from various transportation equipment.

Southwest Airlines has two key threats: growing fuel prices and the rise of numerous low-cost carriers that compete with the corporation. Unfortunately, the quick increase in fuel prices makes it difficult for the company to maintain affordable flight fares. There are not many opportunities to reduce costs, as the company does not offer any additional services, such as lunch service or on-board movies. New low-cost carriers, including Spirit Airlines, JetBlue, Frontier Airlines, and others, have further exacerbated the situation.

In general, the company is utilizing its capabilities effectively as it strives to maintain its low-cost reputation and increase brand recognition. However, Southwest Airlines does not fix its flaws, missing opportunities to penetrate the international market and partner with various manufacturers. It is fair to say that the carrier seeks every means to combat its primary threats, minimize costs, and maintain its dominant market position.

Analysis of Principal Competitive Strategies

Two key competitive tactics have been explored by the corporation. Southwest Airlines depends on Porter's Model for its first strategy. This approach involves the development of a cost-based competitive advantage. Therefore, in order to remain competitive, the corporation "minimizes operating costs, optimizes profit margins, maintains low prices, and provides airline services to the mass market" (Evans, 2019, para.3). The carrier is effectively implementing this plan despite rising challenges, including as the emergence of new low-cost carriers and the rise in fuel prices. Therefore, Southwest Airlines makes long-term contracts with fuel suppliers to decrease operating expenses and maintain low rates (Jackson and Jackson, 2009). To attract more consumers and remain competitive, the company promotes the fact that it offers the lowest prices while keeping the highest quality in its advertisements.

The company's employee orientation policy is another tactic that enables it to remain competitive. Therefore, the company compensates its employees with generous remuneration and social benefits. In spite of the fact that it may appear illogical to pay high salaries at a company that strives to save expenses, it actually helps to avoid some emergent issues. The employee orientation technique allows Southwest Airlines to reduce training costs for new employees. Because the company has "the lowest turnover rate in the industry, approximately 4.5% per year" (Jackson and Jackson, 2009, p.75). Therefore, the results of the evaluation indicate that the implementation of strategies is effective, as it reduces costs and increases employee satisfaction.

Future Prospects

Given the preceding information, it is reasonable to conclude that the company's future prospects are highly promising. Consequently, the airline has been the most lucrative in recent years and is "the only major airline that has not declared bankruptcy" (Ballard, 2019, para. 9). It demonstrates that the company's tactics are effective and should be pushed further to sustain the organization's competitive edge. Therefore, the primary recommendation that can be made to solve growing issues is to adhere to the current plans and work principles in the future. However, it is also vital to pay close attention to new trends and transformations in the aviation business in order to adapt the company's strategy to the shifts. Additionally, it is suggested that Southwest Airlines expand in order to occupy the foreign market and improve the organization's profits.

Conclusion

Southwest Airlines is a formidable firm that holds a prominent place in the aviation market, as may be deduced. The PEST and SWOT assessments demonstrated that the successful performance of the carrier is ensured by an effective policy based on a variety of elements, such as demography, economy, politics, and others. In addition, the analysis found that the company should take advantage of the opportunity to extend its services and launch foreign flights, as well as contemplate the purchase of a variety of equipment. At the conclusion of the report, three recommendations were made, namely, maintaining current strategies, paying close attention to new aviation trends, and entering the worldwide market.

Bibliography

S. Addepalli et al., "Socio-economic and demographic factors that contribute to the growth of the civil aviation industry," Procedia Manufacturing, vol. 19, pp. 2–9, 2018.

Ballard, J. (2019) Where do you see Southwest Airlines 10 years from now? Web.

The Journal of International Social Research, 10(51), pp. 994–1006. Dergisi, U. (2017). "SWOT analysis: A theoretical review."

Southwest Airlines generic strategy, aggressive expansion plans, and competitive advantage. Web.

Heimlich, J. (2016). Air travel status in the United States. [PowerPoint presentation], IPSOS Public Affairs: The Social Research and Corporate Reputation Specialists. Web.

Jackson, W., and Jackson, M. (2009), "Southwest Airlines: The next fight begins," Journal of the International Academy of Case Studies, vol. 15, no. 7, pp. 65–81.

Sammut-Bonnici, T., and Galea, D. (2014). "PEST analysis," in Wiley encyclopedia of management, edited by S.C. Cooper. John Wiley and Sons, New York

United States Population (2019). Web.

2019 Aviation law in the US (2019). Web.

Zapata, C. (2012). "Engineering and strategy: Returning to the case of Southwest Airlines," Gerencia y Gestión, pp. 198–217.

[supanova question]

Colgate-Palmolive Company: Financial Research Report Instant Essay Help

Company Profile

Colgate-Palmolive Company is the leader in the Personal and Household Products industry; it manufactures consumer goods that are sold in at least 200 nations and regions worldwide (Colgate.com, 2011). The corporation was founded in 1806 and organized under Delaware state law in 1923. (Colgate.com, 2011). The company operates in two market sectors, namely "Pet Nutrition" and "Personal, Oral, and Home Care" (Colgate.com, 2011). The corporation is a global leader in the Oral Care sector, with products including toothbrush and toothpaste brands, dental products such as dental floss, and medications (Colgate.com, 2011). The company also has a substantial international market share in liquid-hand soap for its Personal Care brands, which include "Soft-soap and Palmolive shower gels, Protex and Irish Spring bar soaps, Lady Speed Stick as well as Speed Stick antiperspirants and deodorants, and Palmolive" (Colgate.com, 2011).

Colgate manufactures and sells a range of Home Care goods, such as "Ajax and Palmolive dishwashing liquids, Murphy's Oil Soap, and Ajax and Fabuloso household cleaners" (Colgate.com, 2011). The company dominates the market for fabric conditioners with leading names such as Soupline in Europe and Suavitel in Latin America (Colgate.com, 2011). In the Pet Nutrition market area, the company is the global leader in terms of cat and dog pet nutrition brands, with brands marketed in at least 95 countries (Colgate.com, 2011). This market sector of Hill's provides pet food primarily under the Hill's Prescription Diet and Hill's Science Diet trademarks (Colgate.com, 2011).

The Personal, Oral, and Home Care market category is typically active in Latin America, North America, Greater Africa/Asia, and South Pacific/Europe (Colgate.com, 2011); all of these regions market to diverse wholesale and retail clientele. Colgate accounted for 22%, 43%, 22%, and 13% of revenues for Personal products, Oral products, Home Care brands, and Pets food items during the 2010 fiscal year (Colgate.com, 2011). Geographically, the Oral Care brand is a significant portion of Colgate's business in Asia and Africa, accounting for almost 70% of revenue in these regions in 2010; recently, Colgate Co. has bought one of Unilever PLC's brands, Sanex Personal Care (Colgate.com, 2011).

Ratio Analysis.

The origin is Morningstar.com (2011).

Ratios

2010 2009 2008

Ratios de rendement

Profit margin 59.14% 58.77% 56.27%

Operating Margin 22.42% 23.59% 19.70%

Return on assets of 19.75 percent 21.70 percent 19.48 percent

78.37% 97.74% 102.21%

Return on invested capital 36.03% 39.32% 35.17%

Liquidity Ratios

ratio current 1.00 1.06 1.26

Quick ratio 0.56 0.62 0.73

Reduction Ratio

Debt/Equity 1.05 0.96 2.06

Performance Ratios

Inventory Turnover (in terms of times) 5.23 5.25 5.66

Receivables Turnover (number of instances) 9.62 9.53 9.37

Cash Circulation Cycle (days) 40.64 43.3 45.49

Capitalization Ratios

Profit per share: $4.31 $4.37 $3.66

Book value per share $ 5.24 5.62 3.26

As seen in the table above, the gross margin improved by 5.1% between 2008 and 2010. This indicates that the company was effective in controlling manufacturing costs, as the operating margin ratio improved by 13.81 percent between 2008 and 2010. This indicates that the company was efficient in controlling operational expenses, while Colgate was more efficient in 2009 than in 2010, indicating that the company was less efficient in 2010 than in 2009. The firm was inefficient in its use of long-term or permanent funds to create shareholder returns, as assessed by return on capital employed, return on assets, and return on equity, since these ratios decreased by 8.4%, 9.0%, and 19.8%, respectively, from 2009 to 2010.

From 2008 to 2010, Colgate's liquidity position decreased, as assessed by current ratio and quick ratio (Drake, 2009). The fall in the quick ratio relative to the decline in the current ratio indicates that a considerable portion of the company's current assets are held in inventory. The position suggests that the company will be unable to satisfy its short-term maturity requirement on time, as its current liabilities are not covered by its current assets.

Gearing level, as assessed by the debt-to-equity ratio (Microstrategy.com, 2011), indicates a drop in the firm's financial risk from 2008 to 2009, but a 9.4% increase from 2009 to 2010. This indicates that Colgate was highly leveraged in 2008 and 2010, as the ratio was greater than 100%, but less leveraged in 2009, as it was less than 100%.

Inventory Turnover, Receivables Turnover, and Cash Conversion Cycle are efficiency ratios or activity ratios that assess the effectiveness with which a company utilises its assets to create sales (Meir, 2008). These ratios demonstrate how effectively a company has handled its working capital assets and liabilities (Meir, 2008). The Receivables Turnover ratio has improved from 2008 to 2010; this indicates that the company's credit management has been more efficient, since the higher the ratio, the more efficient the company's credit management (Meir, 2008). Inventory Turnover has decreased by 7.6% over the past three years, indicating a decline in the company's ability to turn inventory into revenue; it also indicates that the company retained more unsold inventory in 2010. The company's Cash Conversion Cycle has also decreased over time, which suggests that in 2010 the company required fewer days to finance its working capital and also required less investment in working capital.

The firm's owners anticipated lower earnings per share in 2008 and 2010 compared to 2009, suggesting that each invested share generated $4.31 in 2010, $4.37 in 2009, and $3.66 in 2008. In 2010, if the company was liquidated and all assets were sold at book value, each shareholder would have gotten $5.24 per share retained, which was lower than 2009 and more than 2008.

Financial Forecast

The percentage of sales can be utilized to forecast the items on the income statement and balance sheet. Assume that sales will increase by 4.12% annually over the next three years based on the average growth rate over the past three years. This implies that all components of the income statement, namely revenue, EBIT, net income, and earnings per share, will increase (Meir, 2008); the same will be true for the balance sheet items such as current and long-term liabilities, current and long-term assets, and owner's equity.

Performa Revenue Statement

2011 2012 2013

USD in Million

Revenue 16205 16902 17614

Revenue Expenses 6622.6907.5198

Net Income 9583 9995 10416

Operational costs 5950 6206 6468

EBIT 3,633 3,789 3,948

Interest expense 67.7 70.6 73.6

Other revenue expenditure 7 7.5 8

EBT 3,558 3,711 3,867

Taxes on Income 1163 1213 1264

Other earnings 0 110 56

Profit net 2,395 2,608 2,659

EPS of 4.92, 5.36, and 5.47

Create a Balance Sheet.

2011 2012 2013

USD in million

Assets

Current Assets

Immovable Assets 7749 8082 8422

11,632 12,132 12,643

Current Liabilities 3882 4049 4219

Noncurrent obligations

External Funding Required 2606 2723 3009

6,488 6,772 7,228

Equity of shareholders 5,070 5,283 5,334

11,558 12,054 12,562

Analysis of stock prices

The origin is Morningstar.com (2011).

As shown in Chart 1 above, the Colgate-Palmolive Company share price was $59.66 on August 14, 2006 and increased throughout the remainder of 2006 and all of 2007; on December 14, 2007, the price reached its all-time high of $80.64 with a volume of 2.5 million shares traded before beginning to decline (Colgate.com, 2011). On October 24, 2008, the share price reached $55.94, which was the lowest price for the preceding five years, and 4.2 million shares were traded on the same day (Colgate.com, 2011). On December 4, 2009, the stock price of the corporation reached an all-time high of $85.21, indicating that the market was more bullish in 2009. The share price reached $85.81 on April 2, 2010, which was the highest price in the previous five years (2006 to 2010). At $88.42 on July 8, 2011, the share price reached its all-time high relative to the preceding five years (Colgate.com, 2011).

In 2006 and 2007, the S&P 500 index had a rising tendency, but by the conclusion of the 2007 fiscal year, it had begun to decline, reaching its lowest point in 2009. As indicated in Chart 2 above, the index is currently exhibiting a negative trend. During the same time period, the index exhibited an upward trend during the remaining months of 2009 and 2010; however, the index is currently exhibiting a downward trend.

Late in 2006, Colgate stock underperformed the market (S&P 500 index), but in the first quarter of 2007, the stock outperformed the market. Chart 3 demonstrates that during the second quarter and the first two months of the third quarter of 2007, the stock underperformed the Index. From September 2007 to the present, the stock has outperformed the S&P 500 Index. As depicted in Chart 3 above, the movement of Colgate's stock and the S&P 500 Index are nearly identical, indicating that any market reaction also affects the stock, which is why they are positively correlated and move in the same direction.

The Colgate-Palmolive Company's acquisition of Sanex Personal Care, one of Unilever PLC's brands, means that it has expanded its product line. The acquired brand will boost the company's market share and profitability, leading to a rise in earnings per share. This high profitability will attract many potential investors, resulting in greater demand for the company's stock and a subsequent increase in the share price. Second, the acquisition of this brand means that the company's risks have been diversified, thereby minimizing the amount of risk and making it safe for any investor to invest in the company's stock since he or she trusts the company. Colgate's stock has recently outperformed the market (as measured by the S&P 500 Index), indicating that there is a strong possibility of earning capital gains if one invests in the stock.

References

Colgate.com (2011). Colgate-Palmolive Company: Annual Report for 2010. Obtainable from

Drake, P.P. (2009). Web-based ratio analysis of finances.

Meir, L. (2008). Web-based financial ratio analysis.

Microstrategy.com (2011). Web-based Financial Analysis.

Cash.cnn.com (2011). S&P 500 Index. Web.

The website Morningstar.com (2011). Web site for Colgate-Palmolive Company CL.

Appendices

Table 1: Income Statement for Performa

Profit and Loss Statement

2010 Sales Relationship 2011 2012 2013

USD in million

Revenue 15,564 100% 16205 16902 17614

Revenue Costs 6,360 40.86 % 6622 6907 7198

9204 59.14 % Gross Profit 9583 9995 10416

Expenses for operating 5 715 36.72 % 5950 6206 6468

EBIT 3,489

3,633 3,789 3,948

Interest expenditure 65 0.42% 67.678 70.58821 73.55997

Other revenue expenditure 6

7 7.5 8

EBT 3,418

3,558 3,711 3,867

Taxes on Income 1,117 7.18 1163 1213 1264

Other revenue -110

0 110 56

income net of $2,191

2,395 2,608 2,659

Table 2: Balance sheet for Performa.

Balance sheet of Operating Performance

2010 Sales Relationship 2011 2012 2013

USD in million

Assets

3.730% of current assets 3884 4051 4221

Immovable Assets 7,442 47.82% 7749 8082 8422

11,172

11,632 12,132 12,643

Current Liabilities 3,728 23.95% 3882 4049 4219

Non-current liabilities 4,769 0

External Funding Required

2606 2723 3009

8,497

6,488 6,772 7,228

Equity of shareholders 2,675 0 5,070 5,283 5,334

11,172

11,558 12,054 12,562

[supanova question]

Activity-Based Costing In The Organization Instant Essay Help

Introduction

Activity-Based Costing (ABC) is a management accounting technique that assigns particular resource charges to each of the organization's products. It improves management's understanding of customer cost, product profitability, and product profitability. It is very important for the development of strategic decisions, particularly in the areas of outsourcing and pricing, as well as the identification and evaluation of initiatives designed to enhance the production process. To determine the usage of a shared activity by the various goods, a concept including the use of cost drivers is applied.

Among the most important applications of the ABC are the identification of inefficient departments, goods, and activities that contribute to poor performance. Second, ABC facilitates the allocation of more resources to the highest-performing activities, departments, and products in order to increase performance even further. It also aids in the process of cost containment at both the individual and functional levels. This is essential for enhancing the effectiveness of production processes. In addition, ABC bases product prices on scientific logic. This not only avoids arbitral price-fixing, but also assures that prices are as accurate as feasible by taking cost and other price-determining elements into account. This study reviews the literature on ABC. It examines five research papers and describes in detail why each was written, how the study was conducted, and what conclusions were reached.

Activity-based costing at the United Kingdom's major companies: a comparison of survey results from 1994 and 1999

John Innes, Falconer Mitchell, and Donald Sinclair created the paper. It examines the outcomes of two polls concerning the use of ABC in the UK's largest corporations. The two surveys provide the opportunity to evaluate the evolution of the ABC model adoption over the previous few years. The article provides essential comparison data on factors such as the precise nature of the ABC system in use and the many functions to which it has been put. It also discusses the design of the ABC system in use, the emphasis placed on the system by its users, and, most crucially, the success attributable to the system (Innes, Mitchell and Sinclair, pp3-9).

The study employed questionnaires distributed to finance directors, corporate secretaries, accounting department employees, and other business personnel. 54 respondents were registered in the category of finance directors and company secretaries, 102 respondents were registered in the category of accounting employees, and 21 respondents were registered in the area of other business workers. The response rate was 44.9% overall. All responders were required to have a thorough understanding of the organization’s operations, and, on average, they had spent 9.4% of their careers with the business.

The examination of the polls done in 1994 and 1999 yielded a variety of unique results. It was evident that there was no major growth in adoption rates during the past five years. From 21% and 29.5% in 1994, the proportion of ABC users and those contemplating implementation decreased to 17.5% and 20%, respectively. There was an increase in the number of companies who rejected ABC. Overall, there was no difference between the ABC acceptance rate and the distribution of businesses who contemplated implementing the system. Additionally, it was evident that enterprises in the financial industry and other large corporations maintained greater adoption rates throughout the period.

Throughout the era, there was recognized consistency in design and implementation. In-house accountants remained the most prevalent consultants, participating in more than half of all adoptions. The influence of other disciplines in adoption has significantly diminished. Respondents utilized an assortment of applications to implement the ABC. However, the percentage of businesses adopting specialized commercial packages increased.

During the past five years, there have been few modifications to the utilization of the ABC systems. Almost every system in use served numerous functions. The most prevalent applications included pricing, cost reduction, performance enhancement, and cost modeling. These were used by almost sixty percent of ABC system users. In 1999, the average rating of the system's success was 3.9 on a 5-point scale, with 5 representing success and 1 failure. The rating for the year 1994 was 3.8.

These publications also analyzed information from non-adopters, which was classified into three categories. The first group consisted of persons who had made a conscious decision to avoid using the system. The sum amount was 27. Approximately 74% of these respondents said that the administrative and technological complexity of the ABC system led the implementation costs to outweigh the benefits of applying the system. The second group consisted of people who were considering implementing the system. There were a total of 36 respondents, with the majority citing cost restrictions as the most significant factor preventing implementation. The third group consists of those who have never considered the ABC scheme. 83 individuals were totaled in the questionnaires. The majority of respondents cited insufficient resources for conducting trustworthy assessments.

Accounting and control in a decentralized organization help explain the failure of activity-based costing.

This study report was written by Teemu Malmi to contribute to the continuing conversation of the achievements and failures in two primary ways. First, the study challenges the mainstream paradigm utilized in evaluating the success and failures of ABCs. This article discusses the efforts of previous authors, such as Simons (1990), on how senior management utilizes controls and presents an example in which the management of decentralized enterprises builds interactive cost accounting through the adoption of ABC in a single subunit. The argument offered is that the ABC system is successful in light of the fact that it served the management's intended aim. Consideration is given to the variety of accounting system applications when evaluating their success or failure. Therefore, a portion of the failures are not failures, but rather partial user appreciation (Malmiu, p3-6).

In addition, while some ABC initiatives do fail, the purpose of the study is to gain a better understanding of the amount and causes of resistance to ABC systems. The political, cultural, and rational causes of opposition are assessed.

Explanatory case analysis is utilized in this study. This indicates that the purpose of the study is not to generate and test theories. Rather, the purpose is to explain why ABC failed in a particular environment. This paper seeks to explain the ABC failure as a phenomena.

The paper then describes two case studies, one of which is effective and the other of which is not. In the successful scenario, the ABC system helped decrease uncertainties in the strategic decision-making process, whereas in the unsuccessful case, the project was abandoned due to manpower shortages and a diminished requirement for the control system in light of excess capacity. The 10-month study of the two businesses employed informal interviews, company outcomes, memoranda, and company history. A longitudinal case study clarified ABC's failure.

In the study, two key conclusions on the failure of ABC are reached. First, the application of ABC redirected senior management's attention to strategic uncertainties, which occasionally resulted in unneeded actions. Second, the origins of resistance were extremely diverse, with the majority being dependent on environmental factors.

The enhancement of quality management brought about by activity-based costing

Michalska and Szewieczek, both from the division of materials processing technology at the Silesian University of Technology in Poland, authored this study. This study was written with the intent of assessing the expenses of a complex production process using ABC. It also highlights the distinction between the traditional and ABC systems. The report contends that ABC is founded on two perspectives: the processes perspective and the cost perspective. Cost objects refer to the reasons why expenses are accounted for from the costs perspective. They could be goods, services, contractual obligations, or even clients. The product is the most crucial aspect. Activity expenses are ascribed to supplies and are repeated and uniform (Michalska and Szewieczek, pp3-7).

The study describes studies conducted at a Silesian Region coal mine. The research entails an investigation of coal processing costs using the ABC approach, with the basic costs as the basis. This required determining the fundamental tasks necessary for the development of the final product. Second, the tasks are broken down into more specific components. In coal extraction, there are 18 distinct activities. The costs for each action are then determined.

By assuring correctness and dependability, disaggregating operations provides a more detailed analysis that can be quite valuable in the detection of unnecessary expenses. Given this, the ABC system is far more efficient than traditional costing methods, primarily because it permits precise analysis. Traditional costing methodologies involve numerous broad approaches and, in the majority of circumstances, may not reveal production process weaknesses.

The impact of organizational structure and strategy on the adoption and execution of activity-based costing

The study was written by Maurice Gosselin, a researcher. It focuses on the impact of organizational structure and the implementation of activity management in the production process. In this study, ABC is viewed as a step in the broader activity management process, which also includes activity analysis and activity cost analysis. ABC is the level in the middle of the three.

Concerning the adoption and execution of strategic posture, adoption and implementation of innovations in the process of cost management, information was collected for the study by mail. The mail survey allowed researchers to access a significantly larger sample of the company population at a cheap cost. In the measurement, three variables were used. First, organizations were categorized based on whether or not they adopted activity management. A value of 1 was assigned to individuals who adopted the ABC, while a value of 0 was assigned to those who did not. The majority of companies examined were Canadian manufacturers numbering up to 1,555. (Gosselin, pp2-6).

The survey results reveal that strategy and organizational structure influence decisions to adopt and use AM techniques. Competitive strategy is essential since it necessitates the development of systems that generate sufficient data for use in boosting competitiveness. The organizational structure is also a significant influence in the diffusion of innovation processes. It significantly affects the selection of activity management employed. Organic organizations use informal systems, whereas mechanistic organizations use formal ones. Additionally, the organizational structure has a significant impact on the implementation process.

A New Basis for Performance Management: Activity-Based Costing

Cost Technology, Inc.'s president, Peter Turney, authored the report. This study investigates the historical background of the ABC scheme. Due to the fact that the technique has been utilized since the mid-1980s, this is the case. It attempts to address three key issues. The first focuses on the method's evolution across its full life cycle. The second inquiry aims to determine the lessons learnt throughout the system's full time of evolution. The third question seeks to determine what has been accomplished as a result of the adjustments that make the present ABC preferable than the ABC systems used twenty years ago. Parallel to the product lifetime, a comprehensive investigation of the process of ABC evolution provides answers to these questions. It begins with a synopsis of ABC's history as it relates to the various phases of the cycle, including some key information throughout the past two decades and documenting the system's expansions (Turney, pp4-9).

Various phases are defined throughout the period. The initial phase is called the technological trigger. This spans the years 1984 through 1987. It is the beginning of cost accounting advancements. ABC was initially implemented in Japan in response to the need to become more competitive in the western world, particularly in the automobile and electrical industries. Some western corporations alleged unfair competition, while others attempted to adopt the systems in response to the increased competitiveness. Others devised additional costing methods that would subsequently be merged to become ABC.

The duration of the second phase was from 1987 to 1991. It was dubbed the pinnacle of expectations. This time was marked by an abundance of information regarding the applicability of ABC, which inflated the manager's expectations for ABC. As individuals discovered the diagnostic powers of ABC to solve the majority of her problems, software and consulting organizations sprang up, and international conferences and books were released.

The third phase lasted the years 1991 to 1995 and was referred to as the disillusionment trough. This time period was marked by the bursting of the bubble. Sustainability difficulties, heightened confusion, and some highly apparent system failures drastically diminished people's expectations, and attention shifted to alternative management strategies. The most significant misperception that resulted in dashed expectations was the belief that ABC could be utilized in the organization's daily operations. As a daily application would be too burdensome, the method was designed for periodic use rather than everyday use. The most important lesson learned during this phase was that negative feedback could reduce the method's applicability by decreasing user engagement, especially for such an immature technology. Through continual learning and growth, it is evident that the ABC approach has been able to maintain its relevance even in the face of competing costing techniques.

The subsequent phase occurred between 1995 and 2000 and marked the beginning of the second generation. It was titled "climbing the slope of illumination." This time was defined by increased market penetration and technological advancements. ABC was now relevant outside of the cost accounting field. Even industries that had not previously utilized the system discovered methods for successfully implementing it. Between the years 2000 and 2006, a second phenomenon known as the plateau of productivity occurred. During this time period, the most essential lesson was the direct impact of technological innovation and education on ABC's cost-benefit ratio.

Post Plateau is the name of the final phase, which spans from 2006 to the present day. ABC is now a fundamental component of contemporary performance management. Measurement pertaining to the management of earnings, performance, and human resources, as well as other longer-term factors such as sustainability, are among the solutions provided.

Conclusion

It can be seen that the five articles establish various features of the ABC scheme. ABC has proven to be an effective cost accounting method suitable in the current day. The two polls examined in the first article demonstrate not only the consistency of user interest in the ABC system, but also the significance of perceptions in the acceptance of ABC techniques. This is consistent with the historical examination of the ABC system since the 1980s, since there have been periods in which the impact of ABCs was exaggerated, as well as periods in which the system failed to meet expectations and confidence collapsed. Throughout these eras, publicity played a crucial role.

However, organizational structure remains a key factor in determining the effectiveness of the ABC implementation. Once more, success is greatly dependent on the adoption of the system by the highest level of management. This statement is consistent with the contention that ABC is not intended for daily management but rather occasional analysis. The upper level of management focuses on periodic assessments rather than daily operations data.

ABC's evolution exemplifies a management strategy that has undergone a succession of enhancements to consistently meet the standards of contemporary expectations in areas such as profitability management and other performance management. Numerous companies have gained a competitive edge from the system, beginning in Japan, where the use of the system in corporations such as Toyota has made them global leaders in their field. Numerous sectors that were not anticipated before the system's construction can now efficiently utilize it.

Sources Cited

The Impact of Strategy and Organizational Structure on the Adoption and Implementation of Activity-Based Costing, by Maurice Gosselin. 1997, Accounting, Organizations, and Society, vol. 22(2). Web.

John Innes, Mitchell Falconer, and Donald Sinclair. Activity-based costing at the United Kingdom's major companies: a comparison of survey results from 1994 and 1999. Management Accounting Research, Web site Year 2000.

Malmiu, Teemu. Accounting and control in a decentralized organization help explain the failure of activity-based costing. Management Accounting Research, 1997 World Wide Web.

Activity-Based Costing: An Emerging Foundation for Performance Management. Web. 2000. Turney, Peter.

The enhancement of quality management with activity-based costing, 21 Michalska, Szewieczek (1). Journal of Accomplishments in Materials and Manufacturing Engineering.

[supanova question]

Using A Business Plan To Judge The Potential Viability Of A Business Opportunity Instant Essay Help

Introduction

Numerous firms typically collapse due to a lack of viability. In essence, it is illogical to invest a substantial amount of money in a business prospect, especially when the business's future is uncertain. Business planners or investors rely on business plans to evaluate the feasibility of a business in order to dispel such uncertainty and assure the safety of investments. A business plan is an essential instrument that is very beneficial for summarizing all major features of an organization's structure. It contains all the information required for the operation and management of the company. The plan describes how the business will utilize its funds, manage debts, achieve its goals, and the plan's viability. The plan is quite useful for the management's internal planning. In addition, the business plan can be useful when requesting for loans because it provides a solid foundation for loan acquisition.

Venture Uses of a Business Plan

As stated previously, a business strategy assists managers and owners in acquiring loans. This gives financial organizations such as banks and other potential lenders confidence that the business is viable and worthy of investment (Rakesh, 2005, 78). Nonetheless, a weak business strategy can signal to financiers that the enterprise is not feasible and will result in financial losses (Belkin, 2000, p.4). When the business concept is still in its infancy, the business plan acts as a road map for accomplishing the venture's goals. Entrepreneurs and business owners utilize it to consider the tactics outlined in the business plan (Freed et al, 2008, p.134; Dholakia & Firat, 2006. p.149). In the business plan, the primary business principles, constraints, and financing sources are all outlined, and the plan can be amended when market conditions in a particular industry change (Jones, 2000, p. 12). A business plan is a set of essential management strategies that will provide solutions and a foundation for vital decision-making in order to achieve the goals.

Considering viability

A business plan is commonly regarded as the blueprint for a business opportunity because it encompasses the complete business activity (DeThomas & Grensing-Pophal, 2005, p. 89). The performance of a firm and its progress through time can be monitored and evaluated relative to its stated business objectives, which include sales and expenditures within a specific time frame and strategy (Massarella et al, 1998, p. 45). The business plan assists a company in identifying and concentrating on potential issue areas. The important components of business plans are outlined in the next section.

Evaluation of the Management Plan

Any successful business must have a highly capable management team and a clearly defined organizational structure (Foo et al 2005, p. 389). This can be determined with relative ease from the business plan. Business experts typically state that the management team is the most essential piece of the plan, as it highlights the relevant experience, prior successes, skills, specializations, present performance, and academic qualifications of the management team (Abrams, 2003, p. 67; Mason & Stark, 2004, p.228). When the management team and the workforce have a strong track record of achievement, it indicates that the business is likely to fulfill its objectives and can therefore be considered viable (Kaplan & Norton, 2005, p.98).

Analysis of the Target Market

A company's marketing plans are crucial since they serve as the foundation for its sales, spending, and promotional methods (Covello & Hazelgren, 2003, p.121). Essentially, the market is what will keep the business afloat, making it a crucial factor in determining a business's viability (Abrams, 2003, p. 67; Mason & Stark, 2004, p.228). Competition, customers, market niche, and created goods will be assessed severely. In this process, the real business plan is used to determine the company's competitiveness. The purpose of the plan is to showcase all of the organization's strengths in light of potential threats and weaknesses, while also taking into account the possibilities at hand. A company's survivability can be determined by comparing its strengths and opportunities against its weaknesses and threats strategies (Covello & Hazelgren, 2003, p.121). Essentially, if the product is able to meet numerous previously unmet desires and requirements, then its success is certain and the product or service will be widely accepted on the market (Pinson, 2003, p.111).

The Sales Strategy

The plan's viability is highly dependent on achieving the business's revenue objective. The sales plan specifies the means through which the objectives will be attained (Mason & Stark, 2004, p.228). The client base and marketing program can be evaluated based on this information. Typically, these are derived from market analysis studies and plans (Covello & Hazelgren, 2003, p.121; Miles, 2003, p. 128). In addition to providing information for contingency plans, they aid in establishing if a firm is viable or not.

The Production Strategy

This is especially important for the general management of industrial companies. It identifies many production alternatives and proposes the one that will be employed for successful budgeting of labor and material costs. Aside from that, the section discusses innovative services in a service industry (Barrow et al, 2005, p.89). This information is essential for determining viability since it provides production cost numbers, which are often utilized in a balance sheet to calculate profitability (Pinson, 2003, p. 112). If a manufacturing plan is made more affordable, production costs will be reasonable and lucrative.

Evaluation of the Financial Plan

This is another essential component of the business plan that determines a business opportunity's viability (Allen, 1998, p. 23). This section is very valuable to investors since it confirms that information regarding cash flow requirements will be evaluated for planning purposes. In other areas of the business strategy, this may be unintelligible due to its implicit nature. However, it will be provided in figures in this work (Barrow et al, 2005, p.89; Foo et al 2005, p. 389). This area is distinguished by its financial controls, predictions, and market research numbers. It also includes the amount of funds required to implement the plan (Pinson, 2003, p. 112; Korhonen, 2001, p.484). In essence, if the numbers are unreasonable, company viability cannot be deemed successful.

Evaluating Implementation and Unforeseen Events

If the timetable for attaining the goals is specified in the business plan, lenders and the management team will be able to agree on when the financial requirements will be met (Scholteh, 2000, p. 89). Moreover, a contingency plan is crucial since it gives a way out in the event that a business encounters obstacles that it cannot overcome (Eric et al, 1998, p. 89). These preparations help to circumvent potential difficulties like as legal issues, transformational leadership, and abrupt loopholes. This section reassures the investor or lender that, should the business encounter adversity, it will be possible to resurrect the company so that it can resume operations (Pinson, 2003, p. 112). It is a preventive principle and a sign of readiness, so ensuring the business's viability.

Conclusion

The business plan is a crucial document that defines the venture's viability. Every aspect of the strategy is crucial in its own right, from the management to the recommendation. The plan is business-feasible if its components are based on substantial research and analysis. When all loopholes have been closed, the business can be launched. Good planning has also been linked to success, whereas bad planning has been linked to corporate failures.

Bibliography

Abrams, R. (2003). The Successful Business Plan: Strategies & Secrets. Palgrave Publishers, London

Allen, D. (1998). Strategic Financial Management: Long-Term Financial Success Management Financial Times Business Information, New York.

The phrase Barrow, C. Barrow, P., and R. Brown (2005). The Workbook for Business Plan Development. Publishers Kogan Page of New York

Belkin, L. (2000). The Craft Of Formulating And Executing A Plan. New York, Times New York

Covello, J. & Hazelgren, B.J. (2003). Complete Guide To Business Plans: Easy Steps To Writing Effective Business Plans. New York, Sourcebooks Inc.

A. DeThomas and L. Grensing-Pophal (2005). Creating a persuasive business plan. New York, Palgrave Publications

Dholakia, A.N., and Firat, F., "Global Business Beyond Modernity," Critical Perspectives On International Business, Volume 2, Number 2, Pages 147-167, 2006.

Brian R. F., Eric S.S., and Jay M.B. (1998). The Ernst & Young Business Plan Guide, John Wiley & Sons, New York.

Foo, M.D., P.K. Wong, and A. Ong (2005). Considered by others to be a viable business concept? In a business plan competition, the diversity of the teams and the appraisal of the concepts by the judges are crucial factors. Journal of Business Venturing, volume 20, number 3, pages 385 to 402

Freed, M.N., V.P. Diodato, and D.A. Rouse (2008). Where to get the answers to your business-related inquiries. London, Macmillan Pub. Co.,

Jones, Robert (2000). Business plans are growth and success roadmaps. The Information Forecast

The Balanced Scorecard as a Strategic Management System, by R. S. Kaplan and D. P. Norton. Harvard Business Review, located in Cambridge

Strategic Financial Management in a Multinational Financial Conglomerate: A Multiple Goal Stochastic Programming Approach, by A. Korhonen, published in 2001. European Journal of Operational Research, volume 128 issue 1, pages 418 to 434.

Mason, C., and M. Stark (2004). What Qualities Do Investors Search For in a Business Plan? A Comparison of Banker, Venture Capitalist, and Business Angel Investment Criteria. International Small Business Journal, Volume 22, Issue 3 (pages 227 to 248)

Massarella, G.J. Et Al (1999). How to Create a Business Plan Driven by Results. New Jersey-based Amacom

Miles, R. (2003). Strategy, organizational structure, and process. Stanford: University Press of Stanford

Research In Marketing: Teasing With Trivia Or Risking Relevance?, Piercy F.N., 2002. European Journal of Marketing, Volume 36, Number 3, Pages 350 to 363

Pinson, L. (2003). Anatomy of a Business Plan: A Step-by-Step Guide to Constructing Your Business. Associates, Massachusetts

International Marketing, by J. M. Rakesh, New York: Oxford University Press, 2005.

Scholteh, J.A. (2000). Globalization. A critical introduction. New Jersey, Palgrave Macmillan.

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HR Audit: Florida Corrections And Rehabilitation Instant Essay Help

Introduction

An HR audit is a procedure used by firms to identify and assess methods for enhancing the performance of their staff. Methods of cost reduction, employee motivation, and ways to enhance an organization's efficiency and growth are the primary factors evaluated during the review process. The HR audit evaluation is based on the degree of achievement of predetermined objectives.

Using Florida Corrections and Rehabilitation (FCR) as a benchmark, this article highlights the finest human resource (HR) practices, including HR planning, performance appraisal, 360-degree feedback mechanism, and awards schemes, among others. The majority of firms utilize HR audit as a guide to find best practices for enhancing employee engagement and work attitude. Motivation has a key influence in enhancing the performance and productivity of the workforce. The author recommends how HR strategies can assist Florida Correction and Rehabilitation in optimizing the utilization of human resources. In addition, the report describes FCR's recruitment procedure. FCR's primary recruitment strategies include internal and external internet recruitment and application dumping at designated sites.

The author analyzes the methodology used to adopt HR best practices in organizations and provides strategic recommendations for Florida Correction and Rehabilitation to actualize HR best practices. If implemented, the proposals would assist FCR in achieving efficiency, dependability, and timely progress in providing services to consumers.

The essay finishes by demonstrating how the Equal Employment Opportunity Law protects employees from work-related concerns to a greater extent.

Human Resource Methodologies

Effective HR procedures are vital for any organization's human resource department to achieve its goals. By aligning HR processes with an organization's objectives, it is easier for the HR team to address personnel issues. HR practices enable firms to achieve their HR objectives as a unit and collaborate to achieve common objectives (Prowle, 2000, p.67).

In accordance with human resource management, the Florida Department of Corrections and Rehabilitation employs HR planning, performance evaluation, a 360-degree feedback system, reward schemes, and discretionary employee perks.

HR Planning

HR planning entails the normal HR evaluation roles, administration, and identification of HR requirements required to achieve the defined objectives. Planning for human resources requires an evaluation of existing and competent resources that will be required during the planning period (Prowle, 2000, p.75). The Florida Department of Corrections and Rehabilitation has gained its strategic organization processes mostly through human resource planning. Human resource planning plays a crucial role in establishing competitive advantage for institutions that offer comparable services to consumers. The HR planning approach provides FCR with a solid foundation for tailoring its policies to innovations designed to promote employee retention and recruitment.

The HR planning strategies of FCR are comprehensive and centered on preparing people to match their positions efficiently. FCR's position in HR planning differs from typical HR planning roles, which are primarily administrative. Effective HR planning ensures that the organization's workforce requirements are considered, hence reducing the costs, time, and unanticipated expenses involved with employee sourcing and recruitment (Prowle, 2000, p.88). The implementation of strategies that provide optimal answers for long- and short-term economic issues. The techniques are designed to help decision-makers make reactive decisions in order to keep talented, dedicated, and well-trained people within the organization.

Performance Evaluation

The practice of evaluating employees' output based on time, quality, and cost is known as performance appraisal. It is one of the fundamental HRM techniques for controlling the career development of employees. The procedure aims to determine the worth of employee productivity to a business (Beaumont, 1993, p.73). The Florida Department of Corrections and Rehabilitation uses performance evaluation to determine how to improve employee performance through the feedback system. The input received from employees on various topics is examined to determine how they feel about the company's policies.

Existing legislation on "equal opportunity employer" ingrained in Florida Corrections and Rehabilitation's culture plays a crucial part in refining its appraisal processes. It has been said that FCR's employment culture is inclusive and nondiscriminatory.

360 –Degree Feedback System

The 360-degree feedback method is commonly viewed as a replacement for the conventional evaluation system. The Florida Department of Corrections and Rehabilitation's recruitment staff uses this system to collect and distribute information in an effort to enhance the process. Although it has been recognized that the process has limitations, Florida Corrections and Rehabilitation has utilized it effectively to generate business plans and drive change.

This is accomplished through assisting the workforce in achieving positive organizational change through behavior modification. The 360-degree feedback system can also be used to increase efficiency by identifying teams with insufficient teamwork abilities and directing the implementation of team structure (Hendry, 1995, p.79). Due to the fact that the 360-degree feedback method assists employees in identifying their personal development requirements, firms can use the feedback to produce training manuals for employees with deficient abilities.

The primary objective of the feedback systems at Florida Department of Corrections and Rehabilitation is to promote staff growth and aid the company in making sound decisions. The benefit of the 360-degree feedback system is that it provides the individual with the opportunity to obtain input from those with whom they are in daily contact. This guarantees that those providing comments account for the accuracy of observations.

The system offers a business with the chance to collect client feedback. The firm uses customer feedback as a crucial metric for gauging the quality of services provided to consumers. The 360-degree feedback system is useful because it allows the individual getting the feedback to develop an action plan. The action plan demonstrates how a person comprehends the criticism and is willing to take corrective measures to guarantee the supply of quality service (Hendry, 1995, p.79). Using 360-degree feedback to enhance human resource audit is an evident necessity.

If properly implemented, the benefits of the 360-degree feedback system can also be used to enhance the employee's personal growth. However, if the system's installation is not meticulously designed and a secure working environment is not provided, it may yield undesired outcomes (Hendry, 1995, p.98). The approach facilitates multiple viewpoints on an employee's performance.

Reward Schemes

Reward programs are a typical method used by corporations to incentivize staff. Several other factors also influence the packaging. The Florida Department of Corrections and Rehabilitation employs the incentive program to inspire its personnel. Competence, productivity, and abilities are the primary metrics used to determine compensation. Experience is also a factor in determining the magnitude of the reward; individuals with several years of work experience in a particular position earn higher compensation than, example, recent college graduates. Another reason is performance, which means that employees who achieve superior results are compensated more than those who do poorly. Responsibility scope is the fourth factor. The human resource team and management should define the roles, expectations, and duties of employees and evaluate their performance based on lucid standards. By implementing incentive programs, the Florida Department of Corrections and Rehabilitation was able to enhance employee productivity and motivation.

Non-mandatory employee benefits

Discretionary employee benefits relate to non-salary remuneration (Hendry, 1995, p.69). The Florida Department of Corrections and Rehabilitation has designed a variety of discretionary employee benefits. The first type of benefits is protection programs, which consist of employee insurance packages such as disability insurance, life insurance, and retirement plans (Hendry, 1995, p.103). The second benefit is paid at regular intervals and consists of sick days, vacation days, and holidays. In addition to accommodations and upgrades, discretionary benefits often include bonuses. Programs designed to promote the mental, physical, and emotional well-being of employees are covered by discretionary benefits. Also included in the discretionary benefits program are family assistance programs, the acquisition of skills and knowledge, flexible work hours, and other personnel-motivating incentives (Hendry, 1995, p, 123)

Corrections and Rehabilitation in Florida

Best Practices

Diverse effective strategies contribute to staff recruiting. Literature indicates that connection with employees in a company, employee training, communication, workplace ethics, and motivation all contribute to the improvement of the desirable practices utilized by the majority of firms. In order to achieve more progress and success in employee recruiting, best practices should attempt to increase efficacy and dependability within a legal framework (Beaumont, 1993, p, 86). Complying with measures that enhance employee-employer satisfaction enables a firm to operate efficiently. This can be accomplished by introducing Equal Employment Opportunity (EEO) ethics into an organization, hence promoting excellent recruitment practices.

Training employees enables them to comprehend their transformative functions within a business. Training should be an ongoing activity in a company to guarantee that individuals and the organization are current with new business-related technologies and information. However, care should be taken when offering training to increase productivity inside a business. Training should emphasize abilities that improve an employee's performance in his or her area of expertise (Beaumont, 1993, p, 93).

The focus of training should be on how to use technology tools and data to enhance the efficiency of work processes. Training employees is an excellent method for accelerating the growth of a firm. Employee training also contributes to a safer workplace, decreased organization expenses, fewer legal suits, and improved employee work ethic.

Organizations must provide, structure, and explain their objectives, procedures, and strategies. The incorporation of standard regulations by an organization improves its productivity and growth by fostering a comfortable working environment. Immediately following the recruitment process, human resource management in an organization should build a sophisticated communication mechanism that serves as a link between new employees and the organization. This will ensure that new employees feel welcome and prepared to contribute to the organization's growth and expansion.

Therefore, a firm must ensure that its employees comprehend workplace ethics and conduct. Organizations should, whenever possible, strive to establish their own rules and order to guide personnel in completing their jobs. Despite the fact that federal laws and regulations guarantee equality and protection for both the employee and the business, organization rules can improve workplace efficiency and discipline, hence minimizing negativity and fostering individual growth. Due to unregulated law and order, an organization may experience low production due to a lack of motivation, bad personal and professional connections, absenteeism that reduces organization output, and poor communication (Berman, Bowman, West & Van, 2009, p, 96).

Employees are motivated when they are aware that their employer has defined goals and a vision that are attainable while still appreciating their wellbeing. The management of an organization should include employees in decision-making processes so that employees feel appreciated and so that certain employees' ideas can contribute to the growth and development of the firm (Berman, et al, 2009, p.104). Effective communication channels within a company facilitate understanding between employees and the organization, hence fostering employee-organization partnerships.

Understanding and Implementing Recruitment Best Practices

Organizations that operate inside a legal framework enhance their performance and social responsibility. The legally compliant organization ensures the legitimacy and acceptance of its services and products in the community. In addition, by adopting a legally compliant alternative, employee production for the organization grows while the business is protected by the law, resulting in fewer employee-employer disputes that are easily resolved within set parameters. Equal Employment Opportunity law is one of the most significant guidelines governing a business (EEO).

EEO provides guidance for the development of HR systems that adhere to regulatory criteria (Hendry, 1995, p.56). The Florida Department of Corrections and Rehabilitation implements race and gender equality rules in its human resource audit. When contemplating equal employment for all, it is crucial not to consider race, sex, religion, or color and instead apply the nondiscrimination standard (Beaumont, 1993, p. This suggests that personnel are screened on the basis of merit and qualifications.

EEO also addresses concerns relating to the payment of wages to women and men who perform the same duties and obligations, have equal talents, and have jobs that require equal effort and responsibility, without regard to their gender. It is important to note that men and women occasionally operate differently, but this should never serve as a foundation for discrimination (Burack, 1986, p.73). Likewise, handicap should not serve as a cause for discrimination throughout the recruiting and recruitment process.

Analyzing the Job in order to generate successful selection approaches is crucial for establishing professional and legal rules. Job analysis increases the usefulness of interviews since it allows the interviewer to observe examples of applicant behaviors that are directly related to the job (Hendry, 1995, p.93).

The recruitment process for the Florida Department of Corrections and Rehabilitation is coordinated with State employment policies regarding EEO procedures.

Personnel selection is a crucial aspect of the recruitment procedure. If a corporation makes smart selection decisions during the employment process, it will realize significant cost savings. Poor selection, on the other hand, can lead to a waste of valuable time, financial losses, low self-esteem among employees, and a general decline in organizational efficiency (Karoly and Panis, 2004, p.68). A good selection procedure decreases the likelihood of legal conflicts that may otherwise come from biased procedures.

When a candidate uses Florida Corrections and rehabilitation's online application system, the recruitment process begins. People Priority. When a candidate for employment registers, he or she will have access to the official employment application forms. The applicant can then complete out the application forms and apply for online job openings. Alternately, employment applicants can receive application forms from the state's stop over centers or career agencies and submit them to people First, which is responsible for staffing and administration on behalf of Florida Corrections and rehabilitation. When an application is submitted by People First, an agency contracted by Florida Corrections and rehabilitation to handle recruitment on its behalf, applicants must pass a selection procedure to evaluate if they are culturally compatible with Florida Corrections and rehabilitation Employees.

The applicants are then evaluated based on the job requirements to establish their suitability for the position. The Florida Department of Corrections and Rehabilitation mostly uses interviews in the selection process, however several selection techniques should be used if the process is to be more successful and accurate. Several factors do influence recruiting processes, some of them may be: job attractiveness, recruiting costs organizational reputation and goals set for recruiting.

The importance of the recruitment process at Florida Corrections and Rehabilitation reflects the organization's strong appreciation for its personnel. This is clear through the loyalty demonstrated by the

General Motors Company: Performance Issues Instant Essay Help

Table of Contents
Opportunities Concerning Performance References

General Motors Company, commonly referred to as General Motors (GM), is an American multinational corporation headquartered in Detroit. William Durant founded General Motors in 1908 as a holding corporation; its most recent reorganization took place in 2009. Cadillac, Chevrolet, GMC, and Buick are the corporation's four primary vehicle brands, and it conducts business in over 120 countries across the world. GM is the largest automobile manufacturer in the United States and the fourth largest in the world, behind Toyota, Hyundai, and Volkswagen. GM was the largest vehicle manufacturer in the world from 1931 to 2007 and held a 50% share of the US market at its peak performance (Kaur & Sharma, 2017). This article highlights performance concerns at GM that could be ameliorated by an employee development program. The report also identifies potential for GM to capitalize on and limitations to its capacity to exceed its mission, objectives, and goal. With greater development and exploitation of existing prospects, GM may become the world's leading vehicle manufacturer and maintain its respectable standing.

Performance Concerns

In addition to recalls resulting from defective ignition switches, the company has also had problems related to defective airbags. In 2014, GM attempted to recall over 2 million vehicles after faulty ignition switches were discovered in certain of its models. Sadly, the defective ignition switches were linked to approximately 120 deaths and more than 250 injuries, a catastrophe for the company. In recent years, the automobile industry has grown very competitive, with companies vying to manufacture technologically advanced vehicle models. A recall has the potential to irreparably harm a company's reputation, as clients and competitors may associate such an event with the production of poor products (Tayfun, 2017). The automobile industry faces numerous obstacles linked with market volatility and increased costs of developing innovative technologies. Variations in the automobile industry need a corporation's adaptability and the implementation of a personnel performance improvement program.

Any business that wishes to maintain its competitiveness in the future must implement a comprehensive transformation strategy. For GM, the challenges of sustainability, the introduction of new markets, and the development of distinctive, effective knowledge to attract new consumers and retain the existing ones appear to be hard. Nevertheless, because recalls are prevalent in the vehicle industry, GM should focus on training and developing its employees through employee programs to maintain a competitive advantage over its rivals in terms of innovation. After all, the consequences of its recalls will soon be overshadowed by those of its competitors, such as Toyota Motor Corporation's recent recall. Employee performance development initiatives will be of great benefit to the company since they will increase innovation and draw investors' attention to a relatively favorable aspect of GM (Zhou et al., 2019). The success of a business depends on its capacity to overcome obstacles and maintain a competitive edge.

Opportunities

GM's corporate culture should prioritize the reduction of bureaucracy as an important opportunity. Increased bureaucracy is responsible for the corporation's inability to respond quickly to changes in the external environment. Even though bureaucracy is rooted in GM's organizational structure, senior directors should consider culture as a basic strategy for addressing the problem. Second, GM's limited operations in developing nations have hampered its prospective expansion in these areas. Consequently, GM offers only the Chevrolet model on the Indian market, and Cadillac automobiles are unavailable in Brazil and Argentina (Zhou et al., 2019). In addition, GM's limited business diversity hinders its operations and success. The company has only two core divisions: the vehicle industry and GM Financial, a financial services division. Limited diversification exposes the company to significant market-based risks. Such obstacles demonstrate that GM's potential worldwide expansion might be boosted by using current opportunities.

To increase its adaptability, GM might decrease bureaucracy within the company. Taking advantage of such an opportunity is one manner in which the organization might enhance its capabilities. To enhance its market share, General Motors should expand its operations in developing countries. To increase its sales and profitability, the company may, for instance, offer models other than Chevrolet on the Indian market and manufacture inexpensive autos that can compete effectively in emerging nations (Tayfun, 2017). To enable product diversification, General Motors might form partnerships with local businesses in other countries and integrate computing skills into its autos to assure a strong global presence. The corporation's rapid innovation efforts will allow it to outperform its rivals in all global marketplaces.

Conclusion

In addition to financial services, GM designs, manufactures, sells, and distributes motor vehicles and automobile parts. With further development and exploitation of existing chances, GM may become the world's leading vehicle manufacturer and maintain its respected standing. In addition to recalls caused by defective ignition switches, the company has also had problems resulting from defective airbags. GM's organizational culture should prioritize the reduction of bureaucracy, the expansion of operations in developing countries, and the diversification of its company.

References

Kaur, A., & Sharma, P. C. (2017). Sustainability as a strategy incorporated into supply chain management decision making – A case study of General Motors 5(3), 183-200, International Journal of Sustainable Strategic Management.

Tayfun, N. O. (2017). Examine the connection between product recalls and corporate reputation. 7(10), 11-23, International Journal of Marketing and Technology.

C. Zhou, S. Sridhar, R. Becerril-Arreola, T. H. Cui, and Y. Dong (2019). Promotions as competitive responses to product recalls and their results. The Academy of Marketing Science Journal, 47(4), 702-722.

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Tesla: Corporate Social Responsibility Instant Essay Help

Table of Contents
Summary of Company History Industry Applicability Responsible Business Standards Conclusion Bibliography

Summary

Tesla is one of the world's most well-known brands. Elon Musk, a gifted engineer and entrepreneur, founded and manages Tesla, the global leader in the production and selling of electric vehicles. The company's annual sales has been increasing for over a decade, but it has yet to turn a profit. However, Tesla's Corporate Social Responsibility policy is excellent. It gives precedence to communities, clients, and employees over investors and government. The strategy is exemplified by the fact that the company's goal is not to maximize profits, but rather to make electric automobiles affordable. This paper will provide background information on Tesla and examine how the company promotes ethical business practices.

Histories of the Firm

Tesla is an American electric vehicle manufacturer started in California in July 2003. Elon Musk, an American engineer and investor, is one of the corporation's co-founders (Bhardwaj et al., 2020). Tesla focuses in the manufacturing of electric vehicles and the creation of technologies for the effective use and storage of electricity. The company is named after the renowned Serbian physicist Nikola Tesla (Bhardwaj et al., 2020). The company has developed four Tesla-branded electric vehicle models since 2005: Model S, Model X, Model 3, and Model Y. (Bhardwaj et al., 2020). Additionally, Tesla is extending its global electric charging network, Supercharger.

Tesla's market value increased from $28 billion in 2014 to $350 billion over the past five years. In 2018, Tesla generated $21.4 billion in revenue, yet the business has never concluded the year with a net profit in its entire history (Tesla, 2020). The loss for 2019 has nearly hit $900 million (Tesla, 2020). Elon Musk has been well-known over the years as the company's CEO for his irresponsible, dubious, and frequently provocative tweets. The Securities and Exchange Commission (2018) accused the businessman's Twitter messages of fraud and an attempt to increase the stock price. In September 2018, following legal processes, Musk was removed from his role as chairman of the board, fined $20 million, and ordered to coordinate his social network activities (Securities and Exchange Commission, 2018). Despite the aforementioned difficulties, Tesla is currently one of the most influential firms in the vehicle sector.

Relevance to the Field

Initially, Tesla was not viewed as a comprehensive automobile manufacturer. The prototype was based on the Lotus Elise platform, and the market expected Tesla to be a retailer rather than an independent automaker (Perkins & Murmann, 2018). Tesla’s first automobile was released two years after the initially projected date due to multiple delays. The biggest challenges stemmed from the fact that Tesla was only a 20-person business at the time (Perkins & Murmann, 2018). Without an established engineering and quality assurance process, it is impossible to mass build safe and dependable vehicles.

While a small workforce helped Tesla to quickly adopt creative technologies, it was difficult to handle concerns when they developed (Perkins & Murmann, 2018). Today, however, Tesla is the world's best-selling electric car company, with over 48,000 employees globally (Tesla, 2020). To promote the usage of electric vehicles (EV), it is constructing an international network of charging stations (Tesla, 2019). Moreover, Tesla automobiles appear and are operated similarly to conventional gas-powered vehicles. Therefore, not only can the company compete with other EV makers, but also with established companies like Mercedes-Benz.

Musk's business created Model X in response to the increase in demand for SUVs. Tesla has adapted to market needs effectively. Tesla is also exploring additional vehicle segments; a truck and a roadster are currently in active development (Tesla, 2020). The company's major factory in Fremont is anticipated to produce more than 600,000 units annually (Tesla, 2020). There is one factory in China, while the United States and Germany are constructing two more. As Tesla’s revenue grows and the company anticipates a profit in the coming years, it is logical to assume that the company may consider expanding to other regions of the globe.

Corporate Governance Standards

Tesla has a dual objective that impacts both the consumer and the environment. Elon's goal in creating the company was to make electric vehicles and related technology accessible to all segments of the population. He reaffirmed his objective by stating that Tesla would permit others to use its patents so that they might contribute to the affordability and accessibility of electric automobiles and related systems. According to its Corporate Social Responsibility (CSR) policy, communities are the most important stakeholders, followed by customers, workers, investors, and government (Tesla, 2019). Tesla intends to produce the safest vehicle for consumers and the safest production process for its employees in 2019. To achieve these goals, the company invests its money in autonomous systems research, the development of rules of conduct for its suppliers, and the management of the supply chain to make products safer and the process of making them harmless.

The other aspect of Tesla's purpose is to facilitate the transition to sustainable energy in order to reduce carbon emissions and greenhouse gas emissions. This objective can only be attained if the technologies underlying EVs are accessible to everyone in the world. Musk thus concluded that the key objective is to make technologies more affordable. The fact that investors do not view the corporation's CSR strategy as a top priority implies that profit maximization is not the primary business objective (Baffour-Awuah, 2020). Tesla (2019) promotes its responsible business practices by sourcing responsibly, caring for its employees and consumers, and encouraging community participation in the transition to sustainable energy. Tesla contributes to education in addition to hiring and retaining a diverse workforce. The corporation offers a 12-week program for students who want to begin their careers at Tesla with technical skills (2019). Musk is at the forefront of the current energy revolution, despite criticism from certain financial experts.

Conclusion

Tesla's approach differs from that of the majority of automakers, who typically prioritize profit maximization. The company's mission is to facilitate the transition to sustainable energy by making such items available to a wider audience. Tesla manages the supply chain to ensure that suppliers adhere to the code of conduct throughout the process. The firm plans to expand its position as the world's leading maker of electric vehicles by investing more in sustainable technology research and development.

References

D. Baffour-Awuah (2020). SSRN.net. Essence of corporate social responsibility: Case study of Tesla Inc.

Bhardwaj, S., Pandey, R., Sharma, S., Sejal, S., Iyer, G., Sharma, S., Ranjith, P.V., & Kulkarni, S. (2020). Problems Facing the Automobile Industry: The Tesla Case Tourism and Hospitality in the Asia-Pacific International Journal, 3(2), 78-88.

Perkins, G., & Murmann, J. P. (2018). What impact does Tesla's success have on the future dynamics of the global vehicle industry? Management and Organization Review, volume 14, issue 3, pages 471–480.

Commission of Securities and Exchanges (2018). Elon Musk settles SEC fraud allegations. Web.

Tesla. (2019). Impact report [PDF document]. Web.

Tesla. Q2 2020 Update [PDF document]. Web.

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Micromanagement In The Workplace Instant Essay Help

Compile a Bibliography with Notes

Canner, N., & Bernstein, E. (2016). How did micromanagement become so contagious? Web-based Harvard Business Review

Canner and Bernstein acknowledge that micromanagement can permeate companies when objectives and responsibility are intimately intertwined. The writers attempt to clarify the topic of micromanagement through an examination of ownership and sponsorship. The management assigns a job to an employee and confers responsibility over the collection of outcomes associated with the project's due date and associated constraints. Therefore, it is the responsibility of the employees to identify how they will achieve the goals within the limits provided. The manager is regarded as a sponsor if he or she oversees the project from a distance while providing guidance. However, if they become overbearing or dictate how the work should be completed, they are labeled micromanagers. It has been determined that micromanagement has a ripple impact on the chain of command, particularly in traditional organizational structures. Nevertheless, it has been demonstrated that modifying organizational structures has a limited impact on its deterioration; therefore, Canner and Bernstein recommend that managers set clear targets to facilitate effective delegation, that task goals and objectives be clearly understood, and that sponsors provide effective oversight.

This study demonstrates that micromanagement is correlated with poor employee performance. In addition, the severity of the problem is increased by the fact that this style of management is contagious and can influence the entire command structure.

Fischer, K. J., & Schultz, J. (2017). Covenant and empowerment: Integral organizational leadership and behavior themes Organization Development Journal, volume 35, number 3, pages 43-67. Web.

This study examines the impact of various leadership styles on employee relations, organizational health, and success. Positive outcomes are connected with leadership styles that involve participative decision-making, according to the research. Overall, employee empowerment is essential to organizational leadership, structure, culture, and procedure (OLPSC). Numerous empirical studies demonstrated a positive association between transformative and servant leadership and OLPSC, validating this assertion. Fischer and Schultz used a conceptual strategy to explicate the theoretical foundation for developing a covenantal-empowerment diagnostic that can be used to evaluate the presence of covenantal practices and behavior within an organization. However, the fundamental disadvantage of the discovered covenantal model is that it may not be useful in the current organizational situation, despite its effectiveness in the past. The authors conclude that the concepts shown in the paper may serve as a useful guide for helping firms to acquire a competitive edge via the realignment of their structures and processes.

This article provides evidence that employee empowerment fostered through transformative and servant leadership is essential to the health and prosperity of an organization. Through empowerment and decentralization, employees can engage in decision-making, thereby limiting the negative impacts of micromanagement, such as the development of abusive power structures, workplace conflict, and the decline of personal and professional relationships.

Homisak, L. (2017). Who has authority here? Podiatry Administration.

Homisak highlights the problem of micromanagement in the healthcare setting and its effect on staff turnover. Good managers are ones who feel their employees are self-directed and capable of performing their duties properly. They are good at delegating responsibilities and know how to avoid interfering with the work of others. In certain circumstances, though, some supervisors are overbearing and question their approach. Homisak suggests that employees whose superiors exhibit micromanagement should learn to advocate for themselves and defend their approach. This is due to the fact that micromanagers are typically ignorant that they are micromanaging and overburdening their subordinates. Therefore, it is essential to tackle the work head-on, as their micromanaging supervisors may become aware and alter their position on the matter. Homisak found that the majority of employers engage in micromanagement because they lack faith in their employees' abilities to do the assigned tasks. He acknowledges that this strategy can begin innocently when individuals have sincere intentions to assist and mentor others, but that it progressively becomes more aggressive over time.

This paper demonstrates conclusively that micromanagement causes employee attrition. However, it is acknowledged that such behavior among managers may have originated from a genuine desire to mentor their subordinates, but that it grew with time.

Hotchkiss, D. (2007). Overcoming micromanagement by reinventing tedious boards. Ask Alban, Web.

Hotchkiss analyzes the prevalence of micromanagement in the contemporary workplace. He notes that despite the fact that many managers condemn themselves for being micromanagers, they continue in this manner. He explains this to the fact that people are generally more interested in small, easily-solved problems than in massive ones. This is because it provides them with a feeling of accomplishment and satisfaction. The majority of managers practice micromanagement because they lack delegation abilities and do not know how to allocate their time. Hotchkiss acknowledges, however, that the solution is on managers or the board understanding the art of delegation and how to integrate more vital and relevant work into their agenda. This is accomplished by the board identifying its goals and aligning them with available resources. In simpler terms, managers must strike a balance between authority and responsibility in order to delegate work to the most qualified applicant and free themselves up for other crucial responsibilities.

This article is pertinent to my research problem since it presents substantial evidence of the detrimental consequences of micromanagement in the workplace and identifies a lack of delegation and time managing skills as the root cause of this issue. The dependability and credibility of this essay are based on the fact that it was written by a senior consultant who specializes in strategic and financial planning and congregational governance.

Ridder, J. M., DeSanctis, J. T., Moorkerjee, A. L., & Rajput, V. A micromanaged setting is not favorable to learning for a teaching team. Graduate Medical Education Journal

This article describes the adverse impacts of micromanagement in the healthcare industry. The writers recognize that micromanagement tendencies are motivated by individuals' sentiments of insecurity. Although patient safety and lack of experience among trainees justify micromanagement in hospitals, such monitoring frequently affects trainees' competency and autonomy as well as the supervisor-trainee relationship. The lack of an emotional, cognitive, and psychological learning environment has a negative effect on the learner's motivation. In this context, micromanagement is regarded as a severe concern because it is allegedly embedded in the curriculum, affecting both undergraduate and graduate medical education. As a result, it is necessary to alleviate the issue, which can be accomplished by promoting self-regulation and self-awareness within the clinical staff.

This article implies that micromanagement has negative effects on the workplace. It has been linked to lower morale as a result of limiting an individual's autonomy and competency, hence hurting professional relationships.

Osmel, D., Strauss, E. M., & Ortega, M. A. (2015). When to avoid micromanagement and how to utilize it successfully. 772–776 in American Journal of Health-System Pharmacy, 72(10). Web.

According to Osmel, Strauss, and Ortega, micromanagement is negatively associated with teamwork, particularly employee disengagement, which leads to decreased production. Researchers have discovered that, despite being damaging, it can be an important management tool in some circumstances. To err on the side of caution, managers must differentiate between setting goals and regulating every aspect of a process. Effective micromanagement requires the ability to determine when to intervene and when to remain out of the way. Furthermore, it is vital to highlight that it is only beneficial when administered for a brief duration; yet, long-term use may create an illusion of efficacy that obscures managers' capacity to identify employee disengagement. The study reveals that in order to minimize micromanagement, managers must understand its limitations, recognize when it is appropriate, and adjust it to specific situations. Managers can supplement the minimization tactics by frequently evaluating their own amount of micromanagement.

This article offers substantial evidence that micromanagement is detrimental to employee welfare. In addition, the inclusion of peer-reviewed and up-to-date information reinforces the relevance of the presented findings to the contemporary workplace.

Shufford, Jonathan A. (2019). Micromanagement is detrimental to employee morale. 81(5) Corrections Today, pages 36-41. Web.

The research examines the significance of staff morale in correctional facilities. The authors identify micromanagement as one of the key causes of low employee morale. It has been stated that this level of management in such facilities is a result of the absence of a role model, the presence of toxic power-based management, a lack of confidence in personnel, and supervisors' lack of leadership training. Therefore, micromanagers are viewed as having less empathy, making it difficult for them to function as team players. It has been linked to workforce disempowerment, demotivation, and disengagement, resulting in high turnover rates. Furthermore, it is difficult to eliminate micromanagement once it has been adopted because it is not cognitively based but rather subconscious. As a result, micromanagement has been established as a means to promote greater micromanagement. However, according to Shufford, the only way to reduce micromanagement is to increase empathy. When supervisors grow more empathic, they are more likely to become leaders rather than managers.

This study supports my research hypothesis that micromanagement is related with negative impacts in the workplace, primarily in the area of employee morale. In addition, the fact that the piece is current demonstrates that micromanagement is a pervasive problem in the modern workplace.

Weyand, J. (1996). Micromanagement: Obsolete or thriving? Management Review, 85(11), 62-63. Web.

According to Weyand, micromanagement has been a problem in the past and continues to be a problem today. He believes that an individual's leadership style is a significant aspect of their professional performance. Typically, a leader is responsible for monitoring the direction and development of their subordinates. Leadership impacts not only their professional life, but also their personal lives. However, among all leadership styles, micromanagement is recognized as the least effective option. Despite the fact that some persons acknowledge that this kind of management is preferable to none, it has been shown to weaken individuals and retard organizational development. It is especially useful when there is no need for costly training, performance assessments, or growth plans, and there are no issues over who is in charge. In the end, though, it robs employees of their self-respect and organizations of their future.

This essay is pertinent to my research subject because it acknowledges that micromanagement remains a problem in the modern workplace. In addition, it has been linked to negative results, such as robbing employees of self-respect and retarding organizational development.

White, Robert D. (2010). Symptoms, diagnosis, and treatment for the micromanagement disorder. Public Personnel Management, 39(1), 71-76. Web.

This article describes micromanagement as an organizational "pathology" that is addicting. White observes that self-restraint is a scarce soft skill among contemporary leaders, as they have a tendency to over-scrutinize, over-manage, and over-frustrate employees. He defines a good leader as one who can delegate work to staff efficiently; yet, self-restraint requires this skill. In addition, the author repeatedly uses the term "nuisance" to describe micromanagers and views them as a cause of trouble in today's complicated organizational context. Micromanagers are regarded as leaders that question every decision their subordinates make, are fixated on inconsequential minutiae, and take on too many projects, so overburdening themselves with work. White ties this phenomenon to the Leader-Member Exchange (LMX) paradigm, despite the fact that many individuals despise micromanagement. The hypothesis claims that many managers become micromanagers due to their reluctance to delegate, which stems from their lack of trust in their employees. Despite this, the "disease" of micromanagement can be "cured" by gaining delegation skills.

This article provides substantial evidence that micromanagement is related with detrimental impacts in the workplace, which are analogous to "organizational pathology." It acknowledges that despite widespread criticism of micromanagement, some leaders continue to embrace it; thus, it is considered an addictive disorder.

Yost, L. (2013). (2013). What micromanagement is, what it is not, and how to deal with it. Parks & Amusements

According to Yost, numerous management articles have addressed the topic of micromanagement. The article begins by defining micromanagers as leaders who are overly involved in the work they have outsourced to others and who provide input without taking into account the individuals performing the activity. In most instances, only portions of a task are delegated, resulting in the disengagement of subordinates. Moreover, it has been shown that micromanagement inhibits employee and managerial development; accordingly, collaboration is difficult to create because every employee must contribute to the micromanager's volume of inefficient activities. This ultimately results in doubt, decreased morale, and a lack of trust. Yost elaborates on the management paradigm, which includes directing and controlling. Therefore, in order to avoid becoming micromanagers, leaders must learn to direct and control the proper activities at the appropriate level. A good manager should also be more concerned with the outcome of a task than with the means by which it was accomplished.

The article emphasizes that effective and directive management should never be confused with micromanagement. This is because employees' morale declines when they are required to focus intensely on many activities, hence decreasing the likelihood of organizational success.

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Agency Cost Problems In Corporations Instant Essay Help

The topic under examination in this term paper is agency cost concerns that develop in organizations. The term paper will give an introduction to the issue with the concept of agency costs being investigated and addressed. The debate will also center on the concept of agency relationships between shareholders (principals) and their agents (managers). The paper will also cover crucial agency cost-related subjects, with an emphasis on the business operations and activities of an organization. It will be explored the agency costs in corporations as well as the problems that may occur as a result of agency costs in corporations. The article will also discuss the elements that must be considered prior to incurring agency expenses. The topic will also include the relationships that lead to agency costs within organizations as well as the key people involved in these interactions.

Introduction

An agency cost problem is a cost that occurs as a result of the fundamental issues that arise when shareholders and management have a conflict of interest. Typically, these conflicts of interest develop when shareholders hold a conflicting perspective or view to the company's management over how the company should be managed. Managers frequently have their own vision of how the firm should be and they execute such visions by employing their personal power and authority which could collide with the interests of shareholders. As a result, there are internal conflicts of interest regarding how the company's assets and finances should be managed and maintained. Therefore, agency costs are incurred when a corporation engages the services of an agent to act on behalf of a principal member of the firm, in this case the shareholder (Kleiman par.1).

The explanation of agency costs

Agency costs are described as the costs that are experienced by an entity such as a company, business enterprise or organization while dealing with management-shareholder issues. Agency costs are unavoidable in the majority of corporations, particularly when the corporation's principals lack complete control over the business. Typically, agency expenditures are allocated to features such as performance bonuses and stock options in order to provide shareholders with adequate incentives to purchase firm shares. Agency costs are also used as moral incentives for principals' agents to ensure that they perform their duties, thereby reducing the level of conflict between principals and shareholders. Therefore, agency costs are economic factors that a business must consider in the event that its principals have a conflict with its shareholders. Although agency fees occur in every agent-principal relationship, they are particularly prevalent in enterprises (Kleiman par. 1).

Agency expenses are typically borne by the shareholders of a corporation to encourage the executives and management to engage in shareholder wealth maximization activities that serve their interests. The three categories of agency costs include expenses that will be used to monitor the activities of a company's managers, expenses that will be incurred when structuring the activities of an organization to limit undesirable management behavior, and expenses that will be incurred when shareholder-imposed restrictions limit the ability of a company's board of directors and managers to act against shareholder interests that seek to increase t. (Kleiman par. 8).

The three categories of agency expenses are intended to address managerial or shareholder conduct deemed damaging to the company's market value and market share. Agency expenses develop when shareholders of a corporation are unable or unwilling to address unethical managerial actions and behavior. When the shareholders decide that management actions should conform to their own personal interests, the company is more than likely to incur agency costs. These costs also occur when the agents deployed to manage shareholder-management conflicts incorporate their own self-interests in the management of these conflicts. Agency cost problems are detrimental to the image and reputation of a company that seeks more investors and stockholders to invest in the shares and common stock held by the company (Kleiman par. 9). (Kleiman par. 9).

Agency Cost Considerations for Businesses

Before a firm decides to spend agency costs in order to resolve shareholder-manager issues, two crucial criteria must be considered. These variables include the expenditures that will be involved in engaging an agent such as consultancy fees and financial resource allocation and the cost of the procedures that will be employed by the agent. Managers of a company should evaluate the employment of an agent as a significant element, especially if there is a chance that the agent may utilize the company's resources for their own personal gain. Such a risk must be taken into account if the corporation wants to avoid incurring additional agency expenditures expenses (Kleiman par. 20).

Principals should also evaluate the cost of the methodologies or approaches that the agent will use to solve the problem, as certain ways can be more expensive than others. Techniques such as those used to determine the cost of preparing financial statements may prove to be expensive for the business, which may then opt for less expensive options. Determining the cost of creating financial statements such as income statements, balance sheets, and financial reports could therefore utilize techniques and concepts from agency costs to address the management-shareholder dispute. In addition, they can be used to assess the cost of employing stock options to address the management-shareholder problem and the cost of aligning the interests of managers and shareholders (Kleiman par. 21).

Agency Cost Issues in Businesses

Existing ideas on agency costs dictate that a firm or corporation is considered as a hub of contracts between the company's numerous stakeholders. These nexus of contracts at times lead to disputes that generate agency relationships where two or more individuals having a vested interest in the firm such as stock or share ownership decide to hire other individuals to provide services for them. The most prevalent types of agency relationships in the corporate setting are those between managers and investors and between bondholders and investors. At times these interactions are not always harmonic and tranquil which implies that agency theories have to be employed to deal handle stockholder-manager conflicts and shareholder-bondholder conflicts (Kleiman par.1) (Kleiman par.1).

Agency theories have therefore been developed as dominant models that can be used to manage the relationships that exist between shareholders and managers within a company. Conflicts resulting from the divergent self-interests of the company's various actors typically result in corporate governance and business ethics issues. Typically, agency costs and expenses are incurred by an organization in order to ensure that agency relationships have been properly maintained when agency relationships are formed to address shareholder-management conflicts. Such agency expenses may include paying management incentives or performance bonuses to represent the company's shareholders' interests while performing stock investments, company share buyouts, and employee stock options (Kleiman par. 1).

Agency cost problems usually arise when the managers or shareholders of a company decide to pursue their own self-interests instead of interests that might benefit the company and its shareholders as a whole. For example, an agency cost problem might occur in the case that a company’s management opted to own 100 percent of the company’s stock. Typically, this occurs in sole proprietorships where the owner prioritizes their own self-interests over the company's best interests. If the owner of the firm decides to sell a piece of their shares, so relinquishing a portion of the company's ownership, a problem with agency costs will likely arise when reconciling the company's ownership. The owner may elect to sell shares in order to maximize shareholder wealth, as a smaller portion of the wealth will flow to the owner. When the owner or manager of a company decides to use additional company perquisites, meaning that the cost of such benefits would be borne by outside investors, an agency cost conflict may also arise.

Many of the world's largest publicly traded organizations confront frequent agency conflicts since their managers control a small percentage of the company's equity. This forces some managers to place their personal goals and interests above the maximization of shareholder wealth. For example, the managers of a company might have a personal interest in maximizing the size of the firm to achieve business objectives. By creating a large and rapidly globalized corporation, managers pursue their own self-interests, thereby enhancing their personal status, job security, and compensation benefits. Therefore, such self-interests on the part of managers result in agency cost issues, since additional expenses must be incurred to resolve shareholder-manager conflicts.

Information asymmetry has been highlighted as one of the key sources of agency cost difficulties in many organizations and business businesses. This is due to the fact that the information asymmetry between shareholders and firm managers adds to adverse selection issues and moral hazards within the organization. As previously described in the introduction, agency costs are the result of manager-shareholder conflicts in which the objectives and visions of the shareholders conflict with those of the managers. Therefore, adverse selection problems arise when costs are employed for divergence control to guarantee business operations are not impacted by a disagreement and in the separation of ownership if the company's shareholders wish to separate themselves from the company (Garger par.3)

Selection problems also develop when the business goals of the company’s management are regarded to be more essential than those of the shareholders. Moral risks frequently develop when a company runs into debt, foreclosure or bankruptcy, a condition that can force the company’s owners or managers to follow selfish policies that might see the company suffering agency expenses that diminish the market value and market share of the company. When many principal-agent relationships exist inside a single business, agency cost difficulties can arise. Many complicated modern organizations have so many shareholders that it becomes necessary to employ a large number of agents to manage shareholder-management conflicts. Typically, these concurrent principal-agent pairings make it difficult for the corporation to adequately meet the needs of its shareholders (Garger par.2).

The link that exists between the staff of the company and its proprietors is deemed to be an agency relationship. This form of connection produces agency cost issues when the employee's interests conflict with those of the supervisors. For instance, employees who travel for normal business purposes incur expenses such as transportation, lodging, and food. If the employee decides to arrange their own trip schedule with the agreement of the company’s management, an agency cost problem is likely to develop in the event the employee overspends on housing or meal expenditures (Garger par. 3). (Garger par. 3).

If an employee stays in a five-star hotel and decides to use the hotel's expensive services, the equity held by the company's owners and management will decrease significantly as a result of these high-cost expenses, which are deemed to be unnecessary expenditures. As a result of the asymmetries in information between the employee and the company's managers/owners, agency issues will occur. According to Garger, "the typical corporate structures of most organizations lead to the separation of company control and ownership" ( par.4). If the company's shareholders decide to separate the control of the company's managers and they own a large percentage of the company's stock, agency cost issues are likely to arise (Garger par.4).

Agency cost concerns within corporations also develop as a result of the company’s incapacity to monitor agents. Existing principle on self-interests in agency costs stipulates that agents will act in their own self-interests when dealing with shareholder-management conflicts if the company fails to monitor their activities. Many large-scale companies usually incorporate the use of monitoring systems to reduce the effects of asymmetric information which might lead to agency cost problems within the company. The agency cost problem occurs due to the impossibility of effectively supervising an agent who incurs costs such as managerial behavior monitoring costs, agent costs, and shareholder costs. When the monitoring mechanisms integrated by the company fail to scrutinize properly the activities of the agent during the shareholder-management dispute resolution exercise, a moral hazard usually arises from such a situation (Garger par.5).

When agents decide to use the resources allocated to them for activities other than conflict management of the company's assets, moral risks arise. They also occur when the agents decide to act in an unobserved and self-interested manner considering their own self-interests instead of those of the company. Monitoring costs to prevent moral hazards are typically expensive, and once an agent is identified as a moral hazard, agency cost issues arise. There will always be instances in which agents operate in a manner that is not detectable, regardless of how closely a corporation monitors them. Implementing policies to monitor the activities of the agents will prove to be too expensive for the company, particularly if the agency costs of an agent working for their own interests exceed the monitoring expenses of the company (Garger par. 6).

Contributing principal-agent relationships to agency cost issues

The relationship between a company's shareholders and its managers is typically considered to be the primary cause of agency cost issues within a company. The agent, who in the majority of business corporations is an executive or manager, operates on behalf of the principal, who is the company's shareholder, to guarantee that there are no conflicts between the shareholders and the company's management. To ensure the existence of the agency relationship, there must be an information asymmetry. If there is no knowledge asymmetry, the agent's contract should describe the relationship between their activities and the shareholders' interests.

Agency costs are usually important when the company wants to involve the use of its directors, executives or managers as agents to manage the principal-agent relationship. This means that the principal-agent relationships that exist in major corporations are made up of various actors who involve the use of various goals and objectives to manage these relationships effectively. Principal-agent relationships involve managers, shareholders/stakeholders or bondholders, the company's board of directors, and others.