Valuation methods and approaches tehcniques of tesco plc Essay

Valuation methods and approaches tehcniques of tesco plc - Essay Example Tesco plc is a super market firm in the London Stock Exchange, and it is very essential to evaluate the financial approaches and techniques of the entity. Capital budgeting of an entity means planning for capital assets. The decision about capital budgeting helps to determine whether or not the money should be invested in long term projects. As far as the Research and Development projects of Tesco plc is taken in to consideration, for the purpose of taking the better decision, the fundamental project evaluation techniques like Pay back period, ARR (Accounting or Average Rate of Return), NPV (Net Present Value), or IRR (Internal Rate of Return) is applicable. From this fact it is clear that under the present value method, the present value of all cash in flows is compared against the present value of all cash outflows. The difference between the present value of cash inflows and out flows are known as the net present value. The discount rate for obtaining the present value is some desired rate of return which may be equal to the cost of capital of a company. In addition to this, it is necessary to consider about the concepts like book value, market value, present value, price earning ratio etc. for analyzing the financial viability of Tesco plc. There is a great difference between both concepts like book value as well as market value in case of accounting point of view. The weights to be used can be either book value weights or market value weights. Book value weights are easier to calculate and can be applied consistently. Market value weights are supposed to be superior to book value weights as component costs are opportunity costs and market values reflect economic values. However these weights fluctuate frequently and fluctuations are wide in nature. Both the concept of book value and market value is differ, because book value of the firm or book value weights remains constant, but the market value weights are goes on fluctuating. While computing WACC,

E-commerce innovation Essay Example for Free

E-commerce innovation Essay Abstract The 21st century has been an era of technological development. Life has been a huge success it is possible to get almost anything that you want. Business done through the aid of an internet is called electronic commerce. This kind of business has boomed in the 21st century with the massive availability of personal computers and laptops. Anyone who has been into shopping online will not miss e-bay. E-bay is one shopping center online that has recently been a favorite of those who loves to do shopping without a hassle. E-bay has been in the business for twelve years. This study embark upon the organizational framework of e-bay that aid them in generating more than they have imagined and the organizational strategies of e-bay. Anyone who gets into business has only one thing in mind, success. Success for one business depends on a lot of factors. Apart from its product, the management and the team behind it matters most. This holds true especially for the e-commerce business because this needs a lot of effort on the part of the management to make it appealing to online customers and to make it worthy of trust of many to believe and give their credit card numbers and trust it with money matters. eBay offers more than just a place for auction; they have numerous programs that cater to the need of its client. E-bay has not only conquered North America but also Asia and Europe. The analysis of the organizational strategies of e-bay was done by doing a content analysis of the documents released regarding their system of management. Introduction The 21st century has been an era of technological development. Life has been a huge success it is possible to get almost anything that you want. Development has been continuous and this is not going to stop. Each tries to adapt to the changes that happens in his life and he has to deal with it. Everything happens in the internet, anything that one could think of. There is internet shopping, online education and internet banking and so many more. Since the time internet came into being; information gathering has never been easy. Nowadays, we can get all information that we need with just one snap of the finger. Name the service that you want and the internet has it. You need to study? The web has a site for online education. Need help on money matters? There’s online banking. You would like to shop but have no time to stand up from your work? Even shopping can be done online. Doing business online is termed as e-commerce or e-business. Examples of internet websites that cater to e-commerce business would be commercial sites like Amazon.com, Buy.com, and eBay (Sharpened, 2002). Within these sites, one could do online shopping. Business done through the aid of an internet is called electronic commerce. This kind of business has boomed in the 21st century with the massive availability of personal computers and laptops. Forrester research has recorded total of $12.2 billion sales in 2003 contributed by e-commerce industry (Wikipedia). E-commerce was introduce in the seventies and has evolved in its use since. In the seventies it was only use for transferring of funds and data electronically to aid companies. Then in the eighties the growth of automated teller machines and online banking was because of e-commerce as well. In the nineties, shopping online was the other kind of e-commerce that was introduced in the business (Wikipedia). Anyone who has been into shopping online will not miss e-bay. E-bay is one shopping center online that has recently been a favorite of those who loves to do shopping without a hassle. E-bay has been in the business for twelve years. This company has been a fruit of a trial and error of three prominent people in the business now. The three icons of e-bay are Pierre Omidyar, Meg Whitman and Jim Griffith. These three have made a beautiful outcome of a trial business that has been a very good decision. If to be compared to its contemporary e-commerce websites that were born the same time that they were, their capitalization is twenty five percent more than that of its counterpart (Maney, 2005). What is the secret behind e-bay’s success? What is the organizational framework of e-bay that aid them in generating more than they have imagined in a business that some has notes as skeptical? What could be the organizational strategies of e-bay? Literature Review Anyone who gets into business has only one thing in mind, success. Success for one business depends on a lot of factors. Apart from its product, the management and the team behind it matters most. This holds true especially for the e-commerce business because this needs a lot of effort on the part of the management to make it appealing to online customers and to make it worthy of trust of many to believe and give their credit card numbers and trust it with money matters. Companies try to always to check their management system is helping flourish their business. Business strategies are needed to make sure that one stays in the market long. To make sure that everything is in order, one needs to check if its employees are able to meet up the standards set by the company. The development of the use of corporate code of conducts to govern the behavior of employees has flourished since the passage of the Foreign Corrupt Practices Act (FCPA) in 1977. Back then this code of conducts or corporate social responsibility (CSR) was seen as explicit directives for the employees but today employers were able to understand that these are helpful tools in handling their employees and making their work advantageous for the company. Culture set the business behavior that surrounds a corporations code of conduct. Factors that are included are the way we comprehend the environment, how we use time and power, how we perceive space and structures. Also included is our perception of collective and individual task or relationships. If manage properly, CSR can help in fulfilling economic, social and environmental ambitions. Vital part of corporate governance will include the way codes of conduct are integrated in their operations. To make sure that a global company is competing ethically and effectively, one needs to make sure that the company’s code of conduct are made known to their employees so that they could incorporate it in their way of working (Wozniak, 1997). HSBC is one organization that provides banking and financial services that is doing its best to make up for all the losses and is giving a promising return to its consumers. They might not be the largest company but they have been awarded a couple of excellence award because of their great customer relation and promising return of investments. HSBC has now what a strategic plan they named Managing for Growth. HSBC has lay down their ways for achieving their objective of having an accelerated their rate of revenue. They still have to develop their brand strategy and improve their productivity at the same time maintaining strong position regarding management risk and financial aspect. Employees are also part of those that needs enhancing to make sure that they will be successful in achieving their goals. Part of the company’s plan is giving good rewards to those employees who will achieve the criteria that they have set (HSBC fact sheet, 2006). Every company has their own strategy but the burden lies in properly executing this strategies. Chapman (2004) has concluded that almost ninety percent of companies fail in properly executing their strategies. Studies show that when CEO’s who have failed have been interviewed said that the thing that led them to downfall was the bad execution of strategies that they have formulated. Only fourteen percent of those included in Times 1000 companies have commented that they are implementing good strategies. (Chapman, 2004) Proper management of business and financial risk is needed in order to ensure that an industry like the online shopping and any traditional company associated with it is here to stay. It is easy to acquire a debt but maintaining its positive impact in one company needs a lot of effort and planning. Business risk should be managed well and risk should be realigned in a way to cut costs; Optimized firm’s operating and financing costs; Trade off fixed charge and variable charge costs; Risk management; and when to increase and decrease risk. (Brackers, 2004) Methodology Analysis of the organizational strategies of e-bay by doing a content analysis of the documents released regarding their system of management. Findings / Results E-bay is a phenomenal hit when it comes to online shopping. Their organizational structure is just the same with other big companies. Reports shows that executives of this big company has still the traditional job titles but with a little modification with their job descriptions. To make an organizational structure of an online shopping business advantageous one needs to put more emphasis on its account management and customer relationship manpower (Keen and Qureshiï€ ª, 2006). Most of e-bays top ranking officials are graduates of good international universities and they have satisfactory working experiences as well. Most of them have taken a degree from Stanford University. E-bay has not only conquered North America but also Asia and Europe. There were twelve countries included in the Asian region, thirteen in the European region, greater part of Canada and United States (http://pages.ebay.com/aboutebay/thecompany/companyoverview.html). eBay offers more than just a place for auction; they have numerous programs that cater to the need of its client. These services include The eBay Marketplace, this is where customers could buy and sell their products; PayPal, aids in online monetary transactions of companies and individuals; Skype, is the program of e-bay that is focus on internet communication; Shopping.com, as name implies this is a site for shopping and more shopping that is; Rent.com, is the online apartment listing of eBay in the United States; and Online Classifieds, is a part of the eBay program that is an aid on the communication on a local level. (http://pages.ebay.com/aboutebay/thecompany/companyoverview.html). As recorded, the total number of eBay users worldwide has reach one hundred eighty one million. This total number of users has given eBay total revenue of $44.3 billion in 2005. The good quality of the developer of eBay is that they never loose hope despite all the adversities that they had. They wee also well in choosing in whom to put in specific spots that they needed. Pierre Omidyar, the chairman of eBay, has made a good choice when he chose Meg Whitman to handle his company. Advertisements play a major role in the success of one company as they help in creating public awareness. The first PR Manager of eBay has shown her passion for her work by creating a very good â€Å"myth† about the company. She has used every advertisement techniques to make a good reputation for the company. This good reputation of the company has been a collaboration of good advertisement techniques and good feedback of the services that they provide (Maney, 2005). Customer relationship is an important aspect in retaining customers; this could be achieved by providing a fast and reliable service. Omidyar has commented that aside from carefully managing their employees, the success of e-bay could be attributed to the right decision prowess of its CEO, Whitman. She was able to understand well that an online auction web also needs guiding and understanding the growing community of eBay sellers. Whitman’s strategy in managing the organization was being flexible and keeping in phase with the fast movement of the business (Maney, 2005). The total crash of the eBay sites that happened last June 10, 1999 has humbled the company and has teach the company on some pints regarding taking care of their system and clients as well. The system has crashed for a total of twenty-two hours. They had contacted all those affected by the system crash and this has made a direct impact on the customers, making them feel like they were really an important element of the organization. eBay has let the customers help themselves by providing a framework of a self-serve site. eBay has been an icon in the online business that even school try to use the site to teach students about e-commerce (Johnston, 2002). Conclusions/ Recommendations Any business needs an amount of risk and determination to succeed. The capital is one important factor that determines the future of one industry that is why it is important that the amount invested in any given company or business is carefully monitored if it is being use to the fullest and if it will augment to all the needs needed to make it. The capital of one company could be handled well if they have the right organizational strategies. In electronic business the common problems that may arise will be rejection of service attacks, viruses, obliteration, and theft of their intellectual property. These problems could be prevented if the organization has good managerial considerations and technical options. There should be a balance between internal and external security management (Greiger and Wegman., 2002). Each component contributes to the behavior of the system. No component has an independent effect on the system. The behavior of the system is changed if any component is removed or changed. The system has an outside an environment which provides inputs into the system and receives outputs from the system. All customers want a company that would work to their advantage without any surprises regarding deals made between him and the financial company. They would love someone who could provide them and first-rate service and a bank that has security that they could provide service for a long time. Money matter is one issue among the working citizens that requires them to think a hundred times before getting the service of any financial company. There are a lot of companies that tries to persuade them to invest in their company and that they will be getting their money’s value. Assessing one program’s effectiveness is crucial to its success. Evaluations of the advertisements and marketing strategy could guide the company if there adjustments are needed. Evaluation of the trend of existing customers would be one way of checking if objectives are being met. This could be on the form of surveys and questionnaires regarding how they foresee the services being provided. The key to a successful partnership is inter-dependency. In choosing an e-commerce site that would provide the services needed by one person, they must make sure that they are dealing with the best in the field. A customer must make sure that they are entrusting their money with the correct organization, whenever it is the traditional way or online. Reference Brackers, Kevin. (2004). Chapter 13: Capital Restructure. Pittsburg State University. Retrieved September 18, 2006 from http://www.pittstate.edu/econ/ch12326.html Chapman, Alan. (2004). Strategy Implementation and Realization. Farsight Leadership Ltd. Businessball.com. Retrieved September 18, 2006 from http://www.businessballs.com/businessstrategyimplementation.htm Greiger, Joseph and Jerry Wegman. (2002). Small Business and E-Commerce: Strategic and Legal Concerns. University of Idaho. Retrieved September 17, 2006 from http://www.cbe.uidaho.edu/wegman/geiger-wegman%202002%20website.htm HSBC fact sheet. 2006. HSBC Global Site. Retrieved September 17, 2006 from http://www.hsbc.com/hsbc/investor_centre/fast-facts Johnston, Timothy C. (2002). Using E-bay to teach E-commerce. The University of Tennessee at Martin. Retrieved September 18, 2006 from http://www.utm.edu/staff/johnston/papers/ebayteachec.doc Keen, Peter and Sajda Qureshiï€ ª. (2006). Organizational Transformation through Business Models: A Framework for Business Model Design. Proceedings of the 39th Hawaii International Conference on System Sciences. Retrieved September 18, 2006 from http://www.hicss.hawaii.edu/HICSS39/Best%20Papers/OS/08-14 05.pdf#search=organizational%20framework%20of%20ebay Maney, Kevin. (2005). 10 years ago, eBay changed the world. USA Today. Retrieved September 18, 2006 from http://www.usatoday.com/tech/news/2005-03-21-ebay-cover_x.htm Miner, John B. (2005) Organizational Behavior I: Essential Theories of Motivation and Leadership. HF5549 2005-003746 0-7656-1523-1 Sharpe, Inc. Reference Research Book News. Retrieved September 18, 2006 from http://www.findarticles.com/p/search?tb=artqt=Organizational+behavior+/+Analysis Sharpened Productions. (2006). Definition of E-commerce. Retrieved September 18, 2006 from http://www.sharpened.net/glossary/definition.php?ecommerce The Ebay company. Retrieved September 18, 2006 from http://pages.ebay.com/aboutebay/thecompany/companyoverview.html Wikipedia. (2006) E-commerce. Retrieved September 17, 2006 from http://en.wikipedia.org/wiki/Electronic_commerce Wozniak, Lynne. (1997) International Business Ethics: When a Corporate Code of Conduct is Not Enough.. Relocation Journal Real Estate News. Retrieved September 17, 2006 from http://www.relojournal.com/july97/ethics.htm

Change is inevitable

Change is inevitable Question Provide a critical analysis of an organisational change which you have directly experienced. You may select one element or aspect of the change for a particular discussion. You will be expected to use the main concepts of the relevant parts of the literature on managing change, to diagnose, account for, and explain the change. Consider what lessons can be learnt from that initiative on the strengths and weaknesses of programmatic approaches to change. Introduction Everyone says change is difficult. It is difficult to conceive because one must inevitably deal with people issues and uncertain future. The more so to implement because consequences can be difficult to predict, harder to track and therefore can create a dynamic all of their own. Is this really so? Is it not true that we are living in an era though which dramatic changes of productivity, technology, brand, image and reputation are common place? Thus reaffirming the words of Heraclitus the Greek philosopher who said â€Å"Change is the only constant thing in life† Change is inevitable but often its easier said than implemented because every change faces resistance in some form and carries with it certain consequences. A classic example would be my experience working in MARG Ltd, one of Indias biggest infrastructure company today. I was given the role of a â€Å"Business Analyst† in 2007 immediately after I graduated engineering. It was my first job, my first real life bu siness experience. I was a part of the company for 2 years. The following parts of my essay consist of all the changes the organization went through in the areas of structure, culture and technology. However considering the requirements of the essay a detailed analysis is written on structural change which is an internal change model. The first part identifies the problem due to monumental growth of the organization in terms of financial support received and the subsequent increase in huge human capital required to carry out the projects. The second part consists of the literature review pertaining to the structural change the organization witnessed followed by a brief critical analysis of the entire scenario. The conclusion consists of the mistakes made and lessons learnt followed by a personal reflection on the dynamics of change management. In April 2007 MARG Ltd consisted of 400 employees. By October 2007, the organization grew to 3250 employees with multiple branches exploding in 7 different cities throughout India. That is nearly 9 times its growth in human capital. This happened due to an investment of USD 12.6 million received from deutsche bank for a total land asset of 12400 acres including 2 potential Special Economic Zones and a port infrastructure development. Being a company with only 2 verticals namely Real Estate Residential and Real Estate Commercial, it diversified into 6 verticals consisting of (a) Real Estate Residential, (b) Real Estate Commercial, (c) Port Development, (d) Industrial Clusters, (e) Special Economic Zones and (f) Power generation with about 500 employees in each vertical. Now each vertical had more employees than the entire company had in April. The earlier organizational structure was a traditional functional structure. This structure can be illustrated by the companys activities group ed into departments such as personnel, Marketing, Finance, Sales, Legal and Civil Operations. All the functional departments excluding finance which had a CFO as its business head had 1 CEO reporting directly to the Chairman, 2 Vice presidents (1 for Real Estate residential and 1 for Real estate commercial) reporting to the CEO and the rest of the team reporting to the VPs. This was a simple structure which had its advantages during that phase of the organization. A complete coordination was achieved as the entire operations of the company were achieved through the CEO overseen by the chairman. This structure allowed for the development of employee expertise in all areas, it provided career paths for professional staff involved and finally there was an effective utilization of personnel across various departments (Carnall, C. 1990). However this structure created pressure on the organization for its further growth in the aspect of geographical dispersion, project diversification and increase in human capital. Hence there was a structural change needed in the form of a matrix structure. The chairman decided on this structure as it offered equal importance on the market and the functional focus to the organizational work. Also most academics have believed that such structure is favourable for large construction, aerospace and computer software companies (Hardy, C. 1994). This favours organization which deals with more than one complex project and where there is a need to coordinate and develop project and various specialist activities. As the demand for various specialist inputs is variable over the completion time lines of the project, this structural change seemed to be the best possible solution which not only promoted the effective deployment on a project when needed but also offered the adaptability over time so that resources can be easily switched between projects. The advantages of a structural change of this nature were (a) it identified the project man agement structures, (b) provided accountability for the project, (c) allowed development of cohesive and effective teams of specialists working towards the objectives of a key project, (d) provided for the professional and career development of specialist staff, (e) and most importantly they provided for the flexible use of specialist staff (Carnall, C. 1990). However every choice carries with it certain consequences and uncertainties. The consequences on the negative side which were later realized was that there was difficulty of handling such a matrix structure in terms of reconciling the need for flexibility with the need for project coordination and control. Now this reconciliation required good working relationships between project and functional management which did not exist. This is because about 90% of the employees were fresh entrants. They did not know the people they were working with. Most of them were fresh graduates and never had any previous work experience in infrastructure. Some of the experienced employees who joined recently were not from the industry. Also the biggest issue was that the employees who have been present since the start of the organization felt threatened with the implementation of the new structure as this does not give them the accessibility they had before with their Chairman. The people who had report ed to their respective bosses had now had to report to somebody else. For example the CEOs had to report to the newly appointed Executive Directors, Vice presidents had to report to business heads who in turn had to report to the CEOs. The entire working relationships and comfort zones of various employees were disrupted by the new structural change. Though people understood the need for such a change and that it was required for the benefit of the organization considering its monumental growth, people feared the loss of power and control thus giving rise to insecurities and conflicts. Based on the literature review the 3 main problems identified in the organization with such a structural change were the struggle between; Centralization vs. Decentralization: Being a company with functional structure, the process was a centralized one where the coordination was more straightforward with decisions being made by the chairman at clearly recognized points within the organizational structure. Also the senior management were in a comfortable position with established policies that they are used for many years. It suited the chairman for he had control over all the day to day activities, most decision making and a convenient resource allocation. In this model the centralization of power and control of procedures was focused on the chairman ( Brooke, T. 1987). But however in order to go to the next level of growth and meet the market demand, it was necessary for the organization to be decentralized. With 6 verticals and a man power of 3250 this seemed to be the sensible choice. With as many as 27 projects spread over 6 verticals, delegation was the key factor in meeting objectives. Delegation can reduce the am ount of stress and overload experienced by the senior management. When senior management is overloaded, the exercise of control is diminished. With delegation it was possible for the senior management and the chairman to move away from day to day activities and focus on long term planning and creating a vision. Also it helps the bottom line management in providing opportunities to make decisions and attain personal satisfaction by matching their personal goals with that of the organization. It assists the management development in widening the on job skills of managers and prepares number of people who are capable of undertaking senior positions in the future. It also provides flexibility, with the establishment of sub units it helps in improved controls and performance measurements and accountability can be identified (Bartlett, C. 1991). Control vs. Commitment: This aspect is important for the overall effectiveness of the organization. MARG had a control model where work was divided into specialized tasks. Performance expectations were defined as ‘standards that define the minimum acceptable performance. No attempt was made to establish maximum or potential performance. With the matrix structure, it was necessary to bring the commitment model. But that meant changing the attitude and expectations of the employees. In this model, job profiles were redesigned to be broader and teams rather than individuals and the each business unit was held accountable for performance. This also involved that people rely on shared goals for coordination; influence was based on expertise and information and not on position anymore. Performance expectations were set relatively high. Continuous improvement was expected and monitored. At the same time lot of motivational programs were incorporated as a part of the business managemen t. The organizational structure was designed to be flatter to enhance performance and commitment (Walton. 1987). This gave birth to reward policies, open door policies and performance management systems. This also seemed to enhance employee management relations. Change vs. Stability: Its a common notion that in a changing world every organization must change to survive and prosper. However while this happens its also mandatory to deploy people to produce goods and services to the market as usual, even if we are demanding extra effort from them as they experience change. This is where it is essential that a balance is maintained between change and stability (Chandler. 1962). This often refers to the transition phase between when the change is implemented and the consequences arrive. The transition phase is normally uncertain in a number of areas. Every employee might react differently to changes. The response is not the same always. MARG experienced similar difficulties. Even though awareness for change was established and people understood the need for change, the existing employees couldnt handle a shift in their normal routine and they had give up on their control and power. To bring about a structural change and yet retain the harmony and employee satisfaction seemed to be a challenge for the company. Even though the problem was identified and the corrective measures were taken to overcome them. There was a hurdle in problem solving and it was the blocks in the minds of the employees. These can be categorized as follows; (a) Perceptual Blocks: This involves the employees stereotyping. They saw what they expected to see. They only saw the new structural change as a threat and not as an opportunity to increase their performance or making use of the opportunities to go up the corporate ladder. There were tendencies to delimit the problem area too closely thus defining it narrowly. Thus they never faced the real problem which was their motivation and commitment. Also there were difficulties in using all the sensory inputs (Adams. 1987). The employees felt that they were overloaded with information on changing structures and the reason for it. With fresh job descriptions and new recruitment there were lot of things happening in the organization and the employees couldnt use all the information for their benefit. (b) Emotional Blocks: This involves fear of taking risk, incapacity to tolerate ambiguity and employees preference to judging rather than generating ideas (Olsen. 1986). The existing employees were afraid to take risks and execute the expected tasks for they feared redundancy and felt insecure that if they failed somebody else in the company would take their place and felt loss of appreciation also as a possible outcome. The matrix structure was put in place quickly and it carried with it certain complexities. The available data was overloading and employees felt it was misleading, full of opinions and had different values. In trying to analyze the available data, they missed out on promising opportunities and self development. Finally they were constantly judging the ideas and solutions put forward by the new members and the new bosses. This lead to early rejection of ideas in their minds resulting in organizational objectives not being met. (c) Cognitive Blocks: This aspect doesnt deal with the employees but is associated with the inadequacies of the management. This comprises of incorrect use of language, inflexible use of strategies and lack of correct information (Janis. 1989). Since the top management were from different backgrounds and industries they were using incorrect languages which portrayed a completely different picture for an infrastructure company. Most senior professional come from a comfortable and set environment which had established process, systems and protocols. Also most of them come from traditional companies. Hence there tendencies to stick to what they know and were stuck with their earlier methodologies. This did not suit the current of MARG as it was still in its transition phase and in early phase of establishing fresh policies and process. In spite of the challenges faced, continued focus resulted in establishing a firm matrix structure with all the employees aligned to the objectives of the organization. There were numerous mistakes made but it also lessons were learnt. This section outlines all the mistakes made, the lessons learnt and finally identifies a change model MARG followed in academic language. The time gap between which the change was planned and executed was very quick. Though its understandable that it was need within a quick span of time it shook the organization by its roots with resistance from all sides. One of the major mistakes was that the chairman being used to getting himself involved in the day to day activities continued to do that even with the new matrix structure and this resulted in the displeasure of CEOs, Executive directors and VPs. This affected their decision making as they would have to wait for the chairman to make every decision. Employees developed their own negative perceptions o f structural change and criticized every plan and ideas without thinking about its benefits. MARG followed a clinical approach earlier where the set limited employees and the comfortable environment made it efficient for success through a psychological contract between the employees and the chairman (Bell. 1995). Employees security was established through personal relationships. However with the new structure it was necessary to adopt a linear approach. In this approach change was implemented as a linear process where the managers were expected to identify organizational adaptations ahead and the new systems developed would propel the organization towards static equilibrium thus resulting in stability (Stacey. 1996). The problems as mentioned earlier were solved in 3 stages. First step was unfreezing. Creating awareness among employees for the need of change and the benefits it would bring not only to the organization but also to the employees. Then comes the step moving. Here new i deas are tested and existing process is revamped. This is followed by refreezing where new behaviours, skills and attitudes are stabilized and commitment to change is achieved (Lewin. 1997). The last step was done in 4 stages. First was the conceptualizing process then the motivation process, the commitment process and finally the implementation and evaluation phase (Kotter. 1988). As a result the organization was able to produce the following after a series of trial and error method; (a) established a sense of urgency for change. (b) Created a guiding coalition. (c) Developed a vision and strategy. (d) Communicated the changed vision. (e) Empowered employees for broad based action. (f) Generated short term wins. (g) Anchored new changes in future (Kotter 1996). All this was possible by working through the blocks and with a series of trial and error method the expected result was obtained. Though the price for such a change was key employees and CEOs resigning, with the objectives b eing met it was a lesson learnt for future transformational change. In the current market scenario it is mandatory for such rapid and monumental changes to handle the increasing demand. As Argryis (2004) said â€Å"If the rate of change outside the organization is faster than the rate of change inside, the end result is nigh†. Hence such rapid monumental changes are needed and every change will always carry with it certain uncertainties and challenges. But thats the only way for organizational development. Bibliography Adams, J.L. (1987) Conceptual Blockbusting, pp 18 pp 43, Penguin Publications Argryis, C. (2004) Double Loop learning and organizational change, pp 104, Wiley Publications Bartlett, C.A. (1989) The critical path to change, pp 57 pp 79, Prentice Hall Publications Burnes, B (2004) Managing Change, pp 61 pp190, Prentice Hall Publications Carnall, C. (1990) Managing Change in Organizations, pp 14 18, pp 120 -pp 142, Prentice Hall Publications Chandler, A. (1962). Strategy and Structure, pp 97 180, MIT Publications Dawson, P. (2003) Organizational Change, pp 43- pp 54, Routledge Publications French, W.L (1995) Organizational Development, pp 55 pp 90, Prentice Hall Publications Hardy, C (1994) Managing Strategic Action, pp 290 pp 320, Sage Publications Janis, I.L. (1989), Dynamics of Change management, pp 119 -pp 123, Mc Graw Hill Publications Kotter, J.P (1996) Leading Change, pp 55 64, Harvard Business School Press Lewin, K. (1997) The cognitive and behavioural elements of organizational change, pp 210 pp 241, Sage Publications Stacey, R (1996) strategic Management and Organizational dynamics, pp 199 207, Prentice Hall Publications Olsen, S. (1986). Strategic Control and Organizational Design, pp 145 pp 151, Mc Graw Hill Publications Wilson, D.C. (1992) A strategy for change, pp 25 pp 90, Routledge Publications

Penelope and Odysseus of Homers Odyssey Essay -- Homer Odyssey Essays

Penelope and Odysseus of Homer's Odyssey    Penelope and Odysseus, being kin spirits, soul mates, and a great husband and wife in their own right, are very much alike.   They have many of the same qualities.      Ã‚  Ã‚  Ã‚  Ã‚   Both Penelope and Odysseus are very quick thinking and cunning.   Odysseus, for example, devises the plan to get the Cyclops to drink the wine so the crew could stab him in the eye.   Another example of Odysseus' cunning is his elaborate plan to massacre the suitors.   Odysseus orders that all the weapons be taken out of the room where the arrow contest was being held, then that the women of the household to be locked in their rooms, as to not interfere, then for the doors to be locked by his allies, then to...

20,000 Leagues Under The Sea Essay -- essays research papers

Intellect, Precision, Courtesy; The Makings of a Leader   Ã‚  Ã‚  Ã‚  Ã‚  The ocean swells around you like a dust devil in a sandbox. Salt water fills your nostrils. The ship that deemed this fate upon you sails into the distance. You wonder, how am I going to get out of this one? Suddenly, a large metal object plants itself beneath your feet. A porthole opens and men carry you inside the belly of the large iron beast floating nether you. What’s going to happen now? In Jules Verne’s Twenty Thousand Leagues Under the Sea, this is exactly what main characters M. Aronmax, his servant Conseil, and Ned Land the harpooner, were thinking. After a hefty six-hour wait of being locked in a dark cell, the door opens. A man who introduces himself as Captain Nemo, an obvious leader and a man of stature, claims to have built the submersible in order to travel the world without ever having to step back on the land which he so greatly rejects. Reflection on the qualities of leadership reveals how Captain Nemo’s character enabled him t o do exactly this.   Ã‚  Ã‚  Ã‚  Ã‚  It is soon apparent that Captain Nemo a man of keen intellect. His knowledge of the sea, the many languages he speaks, and the education he has given his men all contribute the success of his ship’s goal, to explore. Examples of his intelligence are rampant throughout the novel. In a burial at sea the captain decided to envelop the body, not only in a coral reef, but also in byssus to seal it for eternity and protect it from sharks. The uncommon understanding of the effects of byssus, or other plant life, demonstrates his depth of research. Using one’s intellect to benefit practical concerns instills admiration and confidence in those serving you. His many years of study also contributed to a broad knowledge of languages: “ ‘Gentlemen’,'; said he, in a calm and penetrating voice, ‘I speak French, English, German, and Latin equally well’ ';. Knowing many languages is essential to becoming a great sea captain for you never k now when or where you might travel. Nemo also has the ability to apply his knowledge into educating his men. It was his genius mind that taught them where to gather, and piece together, the components that would later become the Nautilus. All in all, Captain Nemo is... ...e in an inferior position to oneself. With his respectful attitude, the captain is able to put his “guests'; at ease. “The island of Ceylon, noted for it’s pearl-fisheries. Would you like to visit one of them M. Aronmax?'; Offering options to those with little control over their lives bestows them with a sense of power, however false it may be. A courteous attitude goes a long way to establish positive long-term relationships among those who may be spending extended periods of time together.   Ã‚  Ã‚  Ã‚  Ã‚  Many qualities are in force to make a great leader. Captain Nemo has all of these. His well developed mind allowed him to not only deal with the technological details of the submersible, but also to deal with those around him in an advantageous way. The smooth running of any business is enhanced by attention to the smallest details. Nemo had a great capacity for the minutia of both his life and his work. A successful business depends on the respect a leader gains from his workers. When the captain showed respect he received respect in return. The three prisoners could consider themselves fortunate to be in the hands of such a leader.

International Foundation Year Macroeconomics Essay

Question 2a) Explain the meaning of the term ‘inflation’. Along with the development of society more and more problems are brought to our attention, one of which is that ‘inflation’. Nevertheless, with the advance of the human civilization, the living standard increases gradually so the price index and Retail Price Index (RPI) rise gradually as well. Deep down, ‘inflation’ means a persistent increase in all money prices over a period of time which is generally considered to bring costs to society is the form of material, political and psychological costs. Also, the increase must be sustained at some rate before there is inflation and when the price level increases steadily over time. ‘Inflation’ that is to say, it is decrease in the purchasing power and all money prices to the same extent. In economic, inflation is measured as a percentage change in the PRI over a given period of time, for example, if the RPI increases from 100 to 200 in a year, then inflation is said to have increased by 20% that year. In the UK, the Retail Prices Index is most commonly used measure of inflation. Because RPI is measure the cost of living index, it can reflex the money price level such as through the changes in the prices of goods in the shops by households. From the figure 1 illustrate, which show the inflation from 1.9 per cent in 2001 to 3.2 per cent in 2003. Obviously, the inflation rate in UK has increased 1.3 per cent from 2001 to 2003 under the RPI. Nevertheless, in the USA, the Consumer Prices Index (CPI) is usually used to measure of inflation. In addition, GDP deflator can measure the average level of prices as well. Definitely, inflation is either great or slight fluctuation in each year. In economic, creeping inflation and hyperinflation are represent inflation as well. Actually, hyperinflation similarly as inflation but the meaning is quiet difference. Hyperinflation means extremely rapid inflation and the price increase so fast that money largely loses its convenience as a medium of exchange. However, creeping inflation is at moderate rates but persevering over long period. Annual Inflation Rates in UK – 12 month % change Figure 1: Source: Office for National Statistics To avoid inflation and low inflation, this is a Macroeconomic Policy’s objective for a long time. This policy tries to affect the overall performance of the economy. In fact, people have an aversion to inflation. Due to inflation would cause costs of inflation and a number of influences, for instance, redistributions effects, uncertainty possible harming for long-term investment reduces the welfare of people, inflation tax, Balance of Payment, unemployment, damage a country’s competitiveness and create menu costs. Inflation indeed is a positive rate of growth of the general level and it is closely related to the unemployment. Question 2b) Distinguish between demand-pull and cost-push inflation. In economics, demand-pull and cost-push inflation are completely difference. Moreover, they are played a principal role in each nation economic as well. Demand-pull inflation is contrasted with cost-push inflation. Demand-pull inflation means the price increase is transmitted from one sector to another but cost-push inflation means the wage increase is transmitted from one sector to another. Actually, demand-pull inflation describes how inflation starts and cost-push inflation describes why inflation once begun is so difficult to stop. Fist of all, demand-pull inflation is also call demand inflation. It exist is due to excess demand. It means that the resources are not completely sufficient the different regions and sectors of the economy. Demand inflation means the higher aggregate level of activity, the large proportion of areas and industries which experience excess demand for goods and labors of various sorts. Generally, we can know that increase in aggregate demand will cause higher prices and it bring to the society of cost inflation as well. However, cost-push inflation is reverse of demand-pull inflation. Cost inflation is due to increase the factor input cost such as imported goods and raw materials so that cause to raise the prices or wage rates round the economy. Basically, the costs increase would cause the manufacturer to raise prices, soon afterwards, increases in prices cause workers to demand higher wages as well. So the cumulative effect of all these processes cause of passed on in higher prices to consumers and the cost-push inflation is extremely difficult to stop finally. Question 2c) Suggest how a government might tackle inflation. In economics, there are four ways of dealing with inflation. Fist, government can adopt tough incomes policies to keep inflation under control. Second, government can through institutional and constitutional reform to tackle inflation like as fiscal and monetary policies. Third, government can adopt indexing deal with inflation as well. One of the suggestion might tackle inflation is incomes policies. The aim of incomes policy is the attempt to influence wages and other incomes directly. The methods included jawboning, wage-price guideposts, wage-price controls and tax-based incomes policy. Generally, jawboning means the government uses verbal admonitions against those who want to raise the prices of their products. For example, the supermarket in UK cannot increase the prices for all of goods under the government use verbal admonitions against. In addition, wage-price guideposts can restrain the inflation similarly, the government may set up standards for permissible wage and price increase for the private sector to follow. For example, the government may intentionally reduce the wage increase for civil servants so that encourage other employers to control wage increase as well. It can curb inflation efficiently. Moreover, the government can use tax-based incomes policy such as allow the private sector lower taxes for who follow the guideposts and rise taxes for those who violate them. Furthermore, the government may use wage-price controls or freezes may lead to non-price competition. Basically, the government use of wage and price controls can keep prices and wages below their equilibrium levels. From the above, there are a number of goods suggestions for tackle inflation in income policies for the government. On the other hand, the government may change laws and institutions to make it hard for inflation to emerge. Actually, this way takes a long run view because it is not to concern with the temporary costs of first getting inflation down. Nevertheless, the objective is control how to keep inflation down. So the government can through controlling the Central Bank to pass a law permanently restricting the rate of nominal money growth to. Obviously, once the Central Bank going to rise in interest rates, the aggregate demand going to down naturally. After that, the inflation rate can be controlled finally. In addition, unemployment get a closely relationship with inflation, government can adopt the fiscal and monetary policies to curb inflation at the cost of higher unemployment. As we know, once the country have a higher inflation rate so that lower unemployment rate will be accompanied. Conversely, once the country have higher unemployment rate, the lower inflation will be emerged. But this trade-off focuses attention on aggregate demand and disregards aggregate supply. From figure 2c, which express the price level decrease from P1 to P2 due to the Central Bank increase in interest rates, there is evidence that once increase in interest rates would cause to decrease the aggregate demand as well. To put it more simply, there is also indication that rise in interest rates may exert a downward pressure on prices. Figure 2c: A rise in the rate of interest effect. Third, the government can adopt indexing to tackle inflation. Whereas indexation might automatically adjusts nominal contracts for the effects of inflation, any unanticipated inflation and inflation effect can be tackled. For instance, wage rates, pensions, interest payments on bonds, income taxes and many other things can be indexed in this way. Indeed, the purpose of indexing is to reduce the social cost of inflation. However, everything has a good side and a bad side, and indexing is no exception. Some economists worry about that people would diminish the confidence combating inflation even all prices and terms in contracts will be adjusted according to the price index. Historically, indexation has already been introduced in countries that have had to live with inflation rates of 30 or 40 per cent for years. Finally, there are many ways might tackle inflation for government. Income policies, institutional and constitutional reform with fiscal and monetary policies and indexing are the process to tackle inflation efficiently.

Aspect of Contract & Negligence in Business Essay

The aim of this brief article is to set out some key aspects of contract and the tort of negligence using the following headings: †¢The relationship between the parties †¢The nature of the obligation †¢Causation and remoteness of damage †¢The measure of damages. Using the same headings should remind you of the key aspects of each of the two areas in such a way that you are less likely to confuse them. (The words ‘contract’ and ‘negligence’ are deliberately repeated in each heading so that you get into the habit of distinguishing between the rules for each area, rather than having a general set of notes on, say, remoteness of damage, which confuses material from both areas.) KEY ASPECTS OF THE LAW OF CONTRACT Contract – the relationship between the parties A contract is a legally binding agreement formed by the mutual consent of the parties. The parties may be known to each other, as with a client and an accountant, or they may be strangers, as with a software company and a person who downloads and installs the software. In either case, there is a clear relationship between the parties and this relationship is both formed and governed by the contract. (The rules governing the formation and content of contracts are set out in syllabus areas B1 and B2 of Paper F4 (ENG) syllabus.) Contract – the nature of the obligation In a contractual relationship, the nature of the obligation is determined by the terms of the contract. By entering into the contract, the parties agree to accept the resulting obligations. That is not to say that there is complete freedom of contract, since certain contractual terms may be restricted by statute – for example, under the Unfair Contract Terms Act 1977. Nevertheless, in order for a contract to be binding, the parties must intend to create legal relations and their contractual obligations are based on mutual consent. Contract – causation and remoteness of damage This issue concerns the extent of the defendant’s liability for the chain of events set in motion by the breach of contract. The leading case is Hadley v Baxendale (1854) in which the defendant was contracted to transport a broken mill shaft from the claimant’s mill to the repairers. The defendant was late in delivering the shaft and the mill was idle for a longer period as a result. The claimant sought damages for loss of profits during the delay. The court found for the defendant, setting out a two-stage test for remoteness of damage. In order to be recoverable, the loss must be: †¢either a normal result of the breach, or †¢one which, at the time of the contract, both parties would have contemplated as a probable result. Here, given how important a drive shaft was to a mill, neither test was satisfied, since it was reasonable to expect that the mill would have a spare shaft. Another useful case here is Victoria Laundry v Newham Industries (1949). Here, the defendant’s delay caused the defendant loss of profit, including the loss of an unusually lucrative contract. The defendant was liable for normal loss of profit under the first limb of the Hadley test, but not for the loss from that particular contract. He would only have been liable for that had he known about it when the contract was formed. Contract – the measure of damages The remedies available for breach of contract include the common law remedies of damages, action for the price and quantum meruit, as well as the equitable remedies of injunction and specific performance. Remember that a breach of contract is a breach of a legal obligation, so the aim of the remedies is to put the claimant in the position that they would have been had the defendant fulfilled the obligation. This means putting the claimant in the position that they would have been in had the contract been performed. In relation to damages, this may be divided into expectation loss  (benefits that might have been gained from the performance of the contract) and reliance loss (expenses incurred by the claimant in his side of the contract). The conduct of the claimant may also affect the amount of damages payable, since the claimant is under an obligation to take reasonable measures to mitigate the loss, as in Payzu v Saunders (1919). For example, if the buyer refuses to accept or pay for the goods, the seller must recover what they can by selling the goods to a third party. The damages will be the difference between the contract price and the amount that the seller receives. If the seller receives the contract price or higher from a third party, only nominal damages will be claimable. A claimant who does not attempt to mitigate their loss may have their damages reduced by the amount by which they could have done so. It is for the defendant to prove that the claimant failed to mitigate the loss. We will now use the same headings in relation to the tort of negligence. KEY ASPECTS OF THE TORT OF NEGLIGENCE Negligence – the relationship between the parties Negligence cases are based on a non-contractual relationship between the parties. The parties may be known to each other, as with a surgeon and a patient, or they may be strangers, as with two drivers involved in a road traffic accident. Due to the lack of any agreed relationship between the parties, the first question that arises in the case of negligence is that of whether any relationship exists between them at all. If one party is to be held liable to another in negligence, the relationship that must first be established is that of a duty of care. Exam answers often state as a learned fact that liability in negligence is non-contractual, but it is worth spending a little longer thinking about what it actually means. As a future accountant, you may find it helpful to relate this point to professional negligence cases since these illustrate the extent to which an accountant may be held liable in relationships where there may be no contractual obligation. A useful case in this respect is Caparo Industries plc v Dickman (1990). Here, the claimants were shareholders in a company and the defendants were the company’s auditors. The claimants relied on the audited accounts and purchased more shares with a view to making a takeover bid. Having taken over the company, the claimants discovered that the company had in fact made a  £400,000 loss rather than the  £1.2m profit shown by the financial statements. The House of Lords held that the requirements for a duty of care to exist were as follows: †¢the harm must be reasonably foreseeable †¢there must be proximity between the claimant and the defendant †¢it must be just, fair and reasonable to impose a duty of care on the defendant. Note that foreseeability at this stage in the context of negligence is used to establish whether there is any relationship between the parties; this is not necessary at this stage in contract since the contract itself establishes that there is a relationship. (We will consider foreseeability again in relation to remoteness of damage, which is discussed below.) In Caparo, the contract was between the company and the auditors. The individual shareholders did not have a contract with the auditors. The question was whether the auditors owed a duty of care to the shareholders. The House of Lords held that the auditors owed a duty to the shareholders as a body, but that they did not owe a duty to potential investors or to existing shareholders who planned to increase their shareholding. The defendants were therefore not liable. Caparo is one of a number of cases considering professional negligence. (This is covered by syllabus area B5 of Paper F4 (ENG).) A key theme running through these cases is the existence of the so-called ‘special relationship’. This was first established in Hedley Byrne & Co Ltd v Heller and Partners (1963). Bear in mind that the question of a special relationship is likely to be relevant where the claimant does not have a contractual relationship with the professional providing the advice. In Hedley Byrne itself, the claimant provided services on credit to a client. It did so on the basis of a credit reference given by the defendant, the client’s bank. Note that there was a contract between the claimant and the client and a contract between the client and the bank, but no contract between the claimant and the bank. The defendant was able to avoid liability by relying on an exclusion clause contained in the credit reference. However, had the clause not been present, the defendant would have been liable because it had used its special skill to provide a statement to the claimant in the knowledge that the claimant would rely on this. Other cases that you may find helpful to consider in this context are as follows: †¢JEB Fasteners Ltd v Marks, Bloom & Co (1982) †¢Morgan Crucible v Hill Samuel Bank Ltd (1991) †¢James McNaghten Paper Group Ltd v Hicks Anderson & Co (1991) †¢ADT v BDO Binder Hamlyn (1995) †¢NRG v Bacon & Woodrow and Ernst & Young (1996) In each case, identify any contractual relationships between the various parties involved and the nature of the relationship between the claimant and the defendant. Negligence – the nature of the obligation In relation to negligence, the nature of the obligation is not agreed between the parties but rather is imposed by operation of law. For example, a road user will owe a duty of care to other road users and a manufacturer will owe a duty of care to the final consumers of its products. Once a duty of care has been held to exist, the defendant’s actions are judged by the standard of the reasonable man in the defendant’s position:Blyth v Birmingham Water Works (1856). The standard of care for professionals is of the reasonable professional having or holding himself out as having the skill or ability in question. Learners and the inexperienced will also be judged against the standards of the fully-qualified. Negligence – causation and remoteness of damage In relation to negligence, issues of causation and remoteness tend to be  considered separately. The key test for causation is known as the ‘but for’ test, which basically asks whether the loss would have been sustained ‘but for’ the defendant’s negligence. The leading case here is Barnett v Chelsea and Kensington HMC (1969). The claimant arrived at the hospital emergency department complaining of stomach pains. He was sent home without being examined and subsequently died. Even though the doctor owed the patient a duty of care and had breached the duty, the breach of duty had not caused the patient’s death, since the poisoning was so advanced by the time the patient arrived at the hospital that he could not have been saved even with prompt treatment. The defendant was therefore not liable. The key test for remoteness in negligence is one of foreseeability. In The Wagon Mound (1961), the defendants negligently allowed oil to spill into Sydney Harbour. The claimants were welding, but ceased doing so on seeing the oil. Having been advised that the sparks would not ignite oil lying on the surface of the water, they resumed work. Sparks ignited debris lying on the surface of the oil, which in turn ignited and damaged the claimants’ wharf. It was held that the defendants were not liable since the only foreseeable damage was pollution rather than fire. By contrast, in Jolley v London Borough of Sutton (2000), a local authority failed to remove an abandoned boat for two years. A 14 year-old was seriously injured when he tried to jack up the boat in order to repair it. The authority was found liable since it knew that children regularly played on the boat, so it was foreseeable that a child would be injured. It did not matter that the precise nature of the injury could n ot be foreseen. The cases may appear to conflict, since The Wagon Mound focuses on foreseeability of the type of damage whereas Jolley v Sutton focuses on foreseeability of some harm. There are a number of cases in this area and they are not always easy to reconcile. For the purposes of Paper F4, the key point to remember is that the test for remoteness in the tort of negligence is based on foreseeability of harm. You should be prepared to illustrate this point with examples. Note that the law of negligence considers foreseeability twice: once in relation to duty of care and again in relation to remoteness. Remember that, if there is no duty of care, the question of remoteness does not arise. Caparo v Dickman is a useful illustration of this: it might be foreseeable that existing shareholders would rely on an audit report in deciding whether to increase their shareholding. Nevertheless, the auditor did not owe a duty of care to potential investors. This was based on other aspects of the duty test: proximity and the question of whether it was fair, just and reasonable to impose a duty. Negligence – the measure of damages As with contract, once liability in negligence has been established, the next point to consider is that of remedies and the aim of the remedies is to put the claimant in the position that he would have been in had the breach of obligations not taken place. For negligence, the aim is therefore to put the claimant in the position that they would have been had the tort not been committed. Again, as with contract, the damages payable may also be reduced because of the claimant’s conduct. In negligence, this may be due to the partial defence of contributory negligence. This happens in cases where, even though the defendant was at fault, the claimant contributed to their own loss. Where this happens, the claimant’s damages are reduced by the percentage to which the claimant is held to be at fault. The leading case here is Sayers v Harlow UDC (1958) where the claimant was trapped in a public toilet due to a defective lock. She was injured when trying to climb out and it was held that she had contributed to her own injuries. It is for the defendant to prove that the claimant was contributorily negligent. CONCLUSION Contract and the tort of negligence arise in separate questions on Paper F4, so you will not be asked to compare and contrast them. The aim of this article is to identify some key similarities and differences so that you are less likely to confuse these two areas. Your aim for the exam should be to be able to explain these key aspects of contract and negligence without confusing them. You may find that the following table acts as a useful revision aid: Contractual LiabilityLiability in negligence Relationship between the partiesThe relationship is created and governed by the contract. The parties enter the relationship by mutual consent.The relationship is non-contractual and is imposed by law. The defendant must owe the claimant a duty of care. Nature of obligationThe parties must comply with the terms of the contract.The defendant must act according to the standard of care expected of the reasonable man or the reasonable professional. Causation and remotenessIf the loss is a normal result of the breach, the defendant will be liable; if the loss is not a normal result of the breach, the defendant will only be liable if they knew of the unusual circumstances.The defendant’s negligence must cause the claimant’s loss and the loss must have been a foreseeable consequence of the breach of duty. Measure of damagesThe aim is to compensate the claimant by putting them in the position that they would have been had the contract been performed.The aim is to compensate the claimant by putting them in the position that they would have been had the negligence not taken place. Possible reduction of damagesDamages may be reduced by the amount that could have been mitigated if the claimant fails to take reasonable action to mitigate the loss.Damages may be reduced by the relevant percentage if the claimant’s conduct contributed to the loss.