Why Did Pizza Hut in China Quit Franchise

Why did Pizza Hut Quit Franchise Team 9 1. Introduction: In 1993, Pizza Hut made a 10-year agency contract with Hong Kong’s famous agent, Jardine Matheson. It gave power of agency and its market expansion business in southern part of China to Jardine, which became the only agent of Pizza Hut in China. And from then on, Pizza Hut went on a hard way of expansion.However, in late May, 2004, Yum Brands declared that they had taken back the management and administrative powers of all 130 branch canteens of Pizza Hut in China, and from then on, Pizza Hut would be managed and operated by Yum Brands directly instead of taking the pattern of franchise . 1. 1 Research question: Why did Pizza Hut quit franchising in China? 1. 2 Sub-questions: (1) What is the explanation given by Yum Brands and what are other guesses of why Pizza Hut quit franchise? (2) What are the changes of Pizza Hut after it quit franchise? (3) Why did Pizza Hut quit franchise in China but still continues franchise ab road? 4) Are there similarities between Pizza Hut and other firms quitting franchise? 1. 3 Motivate: Since the franchisor can use franchise to expand the scale of his firm with lower cost than using directly management, franchise becomes the most popular business model among catering services. And thus, it’s such a strange and rare adverse action that Pizza Hut quit franchise. What caused it to do so? Is it problem of franchisee, Jardine Matheson or the problem of the franchise pattern itself? And what does it want to do? We want to find out the answer. 2. Theoretical framework: 2. Explanation of Porter’s 5 Force Model. Porter’s five-force framework is an important tool for ensuring systematically using these principles to assess the current status and likely evolution of an industry. The five-force model contains internal rivalry, entry, substitutes, supplier power and buyer power, which is presented as following: Also, the model has some shortcomings. It doesn ’t take the environment into consideration, which means that it lacks the role of demand and government. And the emphasis of the model is on the competition between firms while recent trend is towards cooperation between firms.What’s more, the model is primarily an analysis of industry rather than analysis for a particular firm. 2. 2 The Forces will be used in our Case Analysis of the model must begin with market definition. When defining the market, we must be sure to include all firms that constrain each other’s strategic decision marking and pay attention to both the product market and geographic market definitions. Some of the five forces we use include: (1) Internal rivalry For most industries, the intensity of internal rivalry is the major determinant of the competitiveness of the industry.Internal rivalry refers to the jockeying for share by firms within a market. (2) Entry Entry is the beginning of production and sales by a new firm in a market. Entry er odes incumbents’ profits in two ways. First, entrants divide marker demand among more sellers. Second, entrants decrease market concentration and heat up internal rivalry. (3)Supplier Power Supplier power takes the point of view of a downstream industry and examines the ability of that industry’s upstream input suppliers to command prices that extract industry profits.Also, we will analyze our case by explaining the influence of the government, which is a shortcoming of the model. 2. 3 Application of the Model to our research question: We will choose to apply the principles of internal rival, entry, and supplier power to our answers of the research question. We think that after Pizza Hut quit franchise, it can choose price competition and benefit leadership, which will affect its rivals and entrants. Also, it has more power when purchasing inputs, which links with supplier power. And the government plays a significant role in our case, too. We will analyze them in deta il later. 3. Data and Methodology: 3. Data: We searched the data from (1) the official website of Pizza Hut China to get the number of canteens it reported; (2) the menus of Pizza Hut in different years to get the price of a pizza; (3) some questionnaires made by others to find customers’ degree of satisfaction; (4) Suning’s annual statements in 2006 and 2008; (5) Some essays 3. 2 Methodology We made broken line graphs and pie charts to make the data we collected easier to analyze. We also list other data in form of tables to make it more clearly. 4. Results & Analysis: 4. 1 The number of canteens is an important index reflecting the expanding speed of Pizza Hut.So we show the following figure. (Pizza Hut has recently declared that it will invest 0. 7 billion RMB to open another 150 canteens only in the year 2012. ) Figure3. 2. 1 shows that the curve of Pizza Hut’s growth rose slowly in the first 13 years, just about the time before Pizza Hut quit franchise. How ever, the curve jumped sharply almost after Pizza Hut quit franchise As we know, by franchise a firm can expand quickly with lower cost, we have thought that the expanding speed would decline after Pizza Hut quit franchise and expand it by itself, because of larger cost. However, what the Figure3. 2. shows to us is opposite. There is a fact that Jardine Matheson only opened 15 canteens in southern China after it gained the agency right, which of course, would disappoint Pizza Hut. So it must be that Jardine lacked the ability of expanding canteens, so Pizza Hut didn’t let it agent any longer. And since Jardine is the best agent in China,(It ranked 319th in the world 500 strong enterprises by †Fortune†. ), Pizza Hut can’t think of a better agent, so it quit franchise and just to expand by itself. . 4. 2 The price of a product shows whether a firm can have competitive advantages in price competition.So we collect the data. Figure3. 2. 2 (2) Annual Inflation r ate of China Figure3. 2. 2 shows that the price went down after quitting franchise in 2004, and came to the minimum in 2005 and 2006, then it rises later. So we can see that before Pizza Hut quit franchise, the average cost of a pizza in southern China in 2003, which is still managed by Jardine, is 60 RMB. It’s reported by manager Luo of Pizza Hut China that its price is 15% higher than any other part of China. That was because Jardine positioned the canteen as the high grade canteen, while Pizza Hut positions its canteen as middle-high grade canteen.So after Pizza Hut quit franchise in2004, as manager Luo said, its price would go down by 15%. We can check it in the figure3. 2. 2 that in 2005, the average price of a pizza decrease to 50, approximately by 15%. However, after the year 2006, the average price of a pizza grows up again, which we will ignore because by calculation (Figure3. 2. 2 (2) shows the annual inflation rate of China from 2003 to 2009), we can make a conclus ion that it happened mainly due to inflation.. 4. 3 Then we think of the brand image, here is the information we found. Figure3. 2. 3 shows overall satisfaction of Pizza Hut’s consumers in 2006.Only 20% of consumers were very satisfied with Pizza Hut and only 30% of consumers were satisfied with Pizza Hut. However, another 30% of consumers thought Pizza Hut is just so-so. Figure3. 2. 4 shows overall satisfaction of Pizza Hut’s consumers in 2010. Consumers who were satisfied with Pizza Hut grew to 50%, the those felt very satisfied with Pizza Hut grew too, although only a little, 1. 43%. The consumers thinking that Pizza Hut was just so-so fell to 21. 43%. Since Pizza Hut said that they quit franchise in order to promote its brand image, we want to see whether or not it would really do so and whether or not it has had an effect.We can see from the results the customers are more satisfied with Pizza Hut in 2010 compared to 2006. So Pizza Hut must have done a lot of work to improve its brand image. And after 4 years efforts, it really has improved its image in people’s minds. It’s comprehensive that it’s easy for Pizza Hut to improve its brand image by itself than by its agent, Jardine Matheson, because the principal and the agent may have some different views. And it’s a bit difficult for Pizza Hut to manage what his agent does 4. 4 Figure3. 2. 6 mainly shows profits in 2006 and 2008 of Suning, which quit franchise in 2007.We can see that its gross profit, year growth, net profit and total assets all grow up. According to Yantai daily newspaper’s report, the Quality Inspection Department found many unqualified products of Supor, a firm owned Suning. The unqualified products were produced by the franchisee of Suning. However, certainly it would do harm to the brand image of Suning. The customers were very upset about the incident. Franchisors depend on franchise to enlarge themselves since the expanding cost is low , but many of them didn’t take care of the quality of the franchisee, they just expand the scale without destination, just as Suning in those years.So the franchisee may take different actions against the principle in order to improve their own profits. Some products franchisees make are not eligible, but the principle can’t notice them. It’s the errors of the franchisee, but franchisors will suffer most because their brand image will be damaged. So quitting franchise must be wise strategy for Suning. As we can see in the figure, it really contributed to higher profits. 5. Discussion: Before applying the theoretical framework to our case, we will discuss the market definition first: Production market:Pizza Hut sells not only pizza and Italian noodles, but rice as well since it’s in Chinese market. So any canteen sells no matter eastern or western food around Pizza Hut must be its rivals. So we define the market as the western-style food market. Geographic market: It’s obviously that most consumers strongly prefer to choose the nearby canteen to have a meal. So we consider the geographic market is a certain area around Pizza Hut’s canteens, which is within the consideration of consumers when they choose a canteen to eat.Then we will answer each sub-question by the tool of theoretical framework: Sub-question 1: What is the explanation given by Yum Brands and what are other guesses of why Pizza Hut quit franchise? Only by knowing the explanation and guesses can we find the possible reasons. Then we can select the right ones. The explanation given by Pizza Hut: Some media reported that Yum Brands wasn’t satisfied with the expanding speed of the franchisee, Jardine Matheson, for it lagged the speed of development of those chain canteens.Also Jardine didn’t obey the ideas and strategies of the Yum Brands thoroughly. Direct at this statement, Shao Xiaowei, the member of public affairs section of Yum Brands, deni ed completely and told Economy Times News that since Pizza Hut chain canteens entered in Chinese market in 1990, all of them had been run by themselves until 1993 when they signed a 10-year contract with HK agent Jardine Matheson to pass franchise authority and the task of marketing extension in South China to it. And Jardine Methoson also became the only franchisee of Pizza Hut in China inland market.Pizza Hut wasn’t unsatisfied with the speed of expansion, instead, they thought Jardine did pretty well and Pizza Hut absorbed lots of experience from it. all in all, compared with other districts in China, South China market has its own specific features. Meanwhile, according to Wanqun, director of public affair of Yum Brand. , Pizza Hut hadn't reached economics of scale and it would impose great risks in franchise. He added that Pizza Hut wasn't mature enough in China, but it didn't mean that franchise door would be closed forever.With support and experience from Yum Brands, P izza Hut would open its franchise door again after the brand name becoming mature enough. In conclusion, Yum Brands arose three reasons for quitting franchise as followings (1) The routes and positions in the market of Yum Brands and Jardine Matheson to develop Pizza Hut are quite different (2) Since Pizza Hut hasn’t reached the economics of scale, it had to quit franchise to avoid risk (3) Since the market of Pizza Hut isn’t mature enough, the risk of having a large scale of franchise is really high.The above-mentioned parts are the reason given by Yum Brands. We don’t know whether it’s exactly the true ones. We also collect other people’s guess as following: (1) Yum Brands wasn’t satisfied with the expanding speed of the franchisee, Jardine Matheson, for it lagged the speed of development of those chain canteens. (2) Pizza hut wants to enhance its brand image so that it will be easy to expand later. Sub-question 2: What are the changes of Pizza Hut after it quit franchise? We want to find out whether quitting franchise is good for Pizza Hut, which can be reflected by the changes. 1)Its open canteens measure the expanding speed of Pizza Hut. From Figure 3. 2. 1, we can see that it opened approximately more and more canteens in one year, which means that its expanding speed became faster and faster. We can apply entrants to the above. According to the principles of entry of theoretical framework, locations can be barriers to entrants. As we know, most consumers have specific geographic preferences when choosing a canteen to have a meal. Then Pizza Hut would lose geographic market if it continued franchise, because the expanding of canteens by Jardine is too slow.So Pizza Hut quit franchise to expand by itself, carrying on a faster expanding speed to get more geographic market. By doing so, it can build barriers to new entrants. (2)Its price first went down immediately after quit franchise. We can apply supplier power, internal rivalry, and entry to explain this condition. According to theoretical framework, the suppliers in a competitive market will have indirect power on downstream firms because they can sell their goods to the highest bidder.We know that Pizza Hut have many rivals when buying inputs, Papa John, KFC and any firms sell similar food because they need similar raw materials. So if Pizza Hut wants to purchase good raw materials, the transaction cost will be high to the franchised canteens. However, when it quit franchise to become vertical integrated firm, it can depend on its parent company, Yum. Because Yum has a network of 1000 firms to provide raw materials, it can reduce the threat of supplier power so that the cost fell and so did the price.And through vertical integration, Pizza Hut has superior access to inputs with the help of Yum as mentioned before, which is also a type of impediments to imitation, a group of isolating mechanism. That will help Pizza Hut to protect its com petitive advantage by preventing other firms from replicating its success. When Pizza Hut reduced the price, it can also have an advantage in price competition with its internal rivals. According to the theoretical framework, price erodes profits by driving down price-cost. And it’s more efficient than nonprice competition though more difficult.There is high price elasticity of demand in food industry because most kinds of food have many substitutes, so when Pizza Hut reduce its price, its rivals’ profits will suffer. And Pizza Hut can also deter entry by limit pricing to build strategic barriers to entry. Limit pricing is that the incumbent sets the price sufficiently low to discourage entrants before entry occurs. When Pizza Hut quit franchise and it lowered the price, it can also lower the expectation of potential entrants. If entrant infers that post-entry price will be low, entry may not be likely.When Pizza Hut quit franchise and become vertically integration, al l of its daily issues are decided by Yum rather than the franchisees. As we know, Yum is a strong company full of management experience and network advantages, so Pizza Hut has new advantages. The established relationships with Yum and its suppliers and customers is not easy to replicate. And because of learning curve effects, Yum has competitive advantages in the market. These can also be entry barriers. (3)From Figure3. 2. 3-3. 2. 4, is brand image was improved, which links with internal rivalry.According to Porter’s Five Forces Model, internal rivals may compete on a number of price and nonprice dimensions. Nonprice competition erodes profits by driving up fixed costs and marginal costs. To the extent that firms can pass cost increases along to consumers in the form of higher prices, non price competition is less likely to erode profits that price competition. So in fact, many firms choose nonprice competition to enjoy solid profits over an extended period of time. And the y are often engaged in vigorous by improving the quality of their products. We can apply this proposal to Pizza Hut.And by franchise, Pizza Hut can also have benefit leadership to keep its competitive advantage. Benefit leadership creates a large value by achieving a higher maximum willingness to pay than its rivals. Since Pizza Hut’s products, pizza and rice, etc, are experience goods, (i. e. quality of the good is only known after purchase and when it’s used for a while) it’s suitable for Pizza Hut to choose benefit leadership to outperform its rivals, because a benefit advantage could be based on image, reputation or credibility, which are more difficult to imitate or neutralize.And for experience goods, a firm’s reputation for quality provides a significant advantage also because consumers who have had a positive experience with a firm’s brand will be reluctant to switch to competing brands if there is a chance that the competing products will not work. It’s known as reputation and buyer uncertainty, a type of early mover advantages, which will help Pizza Hut to sustain its competitive advantages. So it’s very important for Pizza Hut to quit franchise and concentrate on brand improving.Pizza Hut thought its brand image was not so good in South China before 2004 since Jardine had different views in managing the canteen. So it quit franchise and started to operate the canteen by itself and has been focusing on its brand value. It has improved its products’ quality, its service, its environment of canteens and so on, in order to make the overall satisfaction of canteens go up. By doing so, it has advantages in the competition. And improving brand image also links with entry.According to theoretical framework, there are some entry barriers, one of which is that consumers highly value reputation, which means that consumers are brand loyal. Entrants must invest heavily to establish a strong reputation and b rand awareness. Diversifying entrants using a brand umbrella may be more successful than entirely new entrants. It’s reported that in 2003, Saizeriya, a canteen also sells pizzas entered Chinese market because its manager found that the price of Pizza Hut’s pizzas was so high while the quality of that didn’t catch up with the price, which made people not so satisfied with Pizza Hut.And with the same reason Barbera was opened in China, too. So that’s another reason why Pizza Hut quit franchise to establish a strong reputation and brand awareness. By using a brand umbrella it will be successful from protecting itself from stealing its market share by new entrants. Sub-question 3: Why did Pizza Hut quit franchise home but still continues franchise abroad? It’s often the case a kind of business pattern isn’t always useful in every situation, so we want to find whether or not Chinese market is suitable for franchise.There is a prominent phenomeno n that foreign firms would not like to adopt franchise in China. Besides Pizza Hut, its brother firm, KFC is also slow in franchise. Only 40 of 1000 canteens are franchised, and most of them are in small cities. Pizza Hut and KFC developed quickly by franchise, why they become cautious when they enter Chinese market? We think the following reasons can explain it. (1)The government in the firm environment can be an important cause. Porter’s Five Forces Model doesn’t have explicit role for the government.But according to Porter Diamond, the government plays an important role in influencing the firm’s strategy. Franchise took place in China in early 1990’s. And China government cancelled all limitation on franchise into Chinese market in 2002 when China entered into WTO. So by 2004, the time when Pizza Hut quit franchise, some related departments, professional service institutions, and policies and regulations still needed improving. At that time, adopt fran chise would take the firm into trouble. (2)The market for franchise is not mature enough.Since the success of a firm’s organization and strategy depends on the characteristics of the firm, the market, and the environment. So we must take the market into consideration when analyzing the firm’s strategy. Since it’s too short for franchise to improve in Chinese market, related departments, professional service institutions, franchisors and franchisees, potential investors and professional employees have large differences in understanding franchise. They also have few preparations and lack the abilities of franchise.However, the two reasons above don’t happen abroad because franchise happened early in foreign countries. It originates from the United States in 1851. The time is long enough for the market of franchise to become mature. (3) Franchisors lack confidence in franchisees. Pizza Hut has tried hard to seek out franchisee. One of the strategies the firm has chosen to make its franchise more attractive to franchisees is to make all canteens uniform. Pizza Hut became a part of the Yum’s franchise group. Other restaurants such as Taco Bell, KFC and Long John Silvers are lso part of this network. This grouping together of franchises has allowed franchisees to increase their potential for income by having both Pizza Hut and Taco Bell items for sale in a canteen. Yum is one of the world’s largest franchisors, and around 76% of the 325,000 Pizza Hut’s canteens around the world are franchised. It believes in focusing on its competition advantages in market and product development, and complementing these advantages with the expertise of its franchise partners in the areas of customer service and restaurant operations.This combined expertise of Yum and franchisee ownership is the key driver in achieving global growth. An analyst explained that by franchise, franchisor might lose control of some resources and become too dependent on franchisees, and the quality of products and services couldn't reach a uniform standard, while uniformity was crucial to enterprises such as KFC. A KFC staff told the journalist in private that in fact, KFC didn't have the courage to open its franchised canteens to a large scale since it didn't have sufficient confidence in most of the franchisees.Also the cost to run well a franchised outlet is really high, the minimum financial requirement to open a Pizza Hut franchise in the United States is $700,000 Net Worth and $350,000 in liquid assets [Figure 3. 2. 5], and to make the business profitable will make much pressure. Sub-question4: Are there similarities between Pizza Hut and other firms quitting franchise? Now we will compare pizza hut with other firms also quitting franchise to analyze the case. First, since Pizza Hut is in middle high level in catering service. So we choose some other firms in the same level as Pizza Hut in their own industry to do the comparison .Although they have some differences, it will be convictive to put them in their market and analyze the reason to give support to pizza hut, because we think the level will affect the strategy of choosing franchise or not. We choose Suning and Masha to do the analysis. Suning is a famous brand in China, mainly concentrating in electric appliance. In the beginning of the foundation, it expanded its scale fast and got many profits by franchise. It defeated Gome and became one of the leading electric appliance enterprises in China. But in 2007, it quit franchise because it wasn’t satisfied with its franchisee because the price hey produced didn’t meet the standard of quality as mentioned before. Another example is Masha department store, the biggest transnational retail group in England, who adopts directly management in China. The firm thought it is easier to control the management and keep their company’s future distinguishing. There are only 6 branches in China. Related to pizza hut’s direct management mentioned above, we can see franchise is not always favorable to the firm. Besides the quality and brand image problems, we have other reasons, the higher agent cost and the leak of private knowledge.Now we apply the framework to analyze these two reasons as followings. First, franchise can lead to high agency cost. Agency problems arise when the objectives of the principal and the agent are different and the actions taken and the information possessed by the agent is not observable by the principal, just as Suning and its agent, and maybe Pizza Hut and Jardine. The principle can’t have a very comprehensive control over the franchisees. As the firm becomes larger, it is harder for the principal to coordinate the work of different franchisees, thus the agency cost will be higher.And the principle should give more power to the franchisees so that they can have enough flexibility to react to the changes of the market. But if the p ower is too much, it may lead to decentralized organizations. The decision making authority will be dispersed. Agency problems may lead to coordination opportunities to be missed in decentralized organizations, which results in agency costs. As the organization becomes large, the coordination problems become more severe. Second, franchise will lead to the leak of the private information.As the franchisees work with the principal, they can learn more business management of the firm, learn the corporation culture, even the core technology, e. g. the special know-how. So the private information may be leaked. And once the franchisees quit cooperation, there will be a great threat to the principle and maybe its market share will get down. So we can see that if a firm is in middle high level or high level, or in other words, if a firm requires a lot in the quality of its product, they will possibly choose the pattern of vertical integration instead of franchise. Conclusion:We think the r easons why Pizza Hut quit franchise are as followings: (1) Yum Brands wasn’t satisfied with its franchisee, Jardine Matheson in expanding speed though Yum denied it. And so far it can’t find a better franchisee. (2) Pizza Hut wants to enhance its brand image so that it will be easy to expand later. (3) Since the market for franchise isn’t mature enough as in other developed foreign countries, the risk of having a large scale of franchise is really high. Our suggestions: (1) Since Chinese market for franchise isn’t mature enough, Pizza Hut can still be vertically integrated and concentrate on brand improving. 2) When Chinese market for franchise is mature and Pizza Hut’s brand is deeply loved by customers, Pizza Hut can reconsider franchise strategy to expand quickly with lower cost. (3) If Pizza Hut reconsiders franchise strategy, it must choose an experienced and high-quality franchisee. (4) It’s also good for Pizza Hut to adopt directly ma nagement as the main while franchise as the supplementary. (words:4435) Chen Yingying 2011123868 [email  protected] com Sherry 2011123870 [email  protected] com Kally 2011123826 [email  protected] com References & Bibiography:Economics of Strategy (David Besanko, David Dranove, Mark Shanley) http://www. pizzahut. com. cn/phdi/index. aspx#! handler/home. ashx? &tagid=&proid= http://bbs. gxsky. com/thread-595855-1-1. html http://zhidao. baidu. com/q? ct=17&pn=0&tn=ikaslist&rn=10&word http://www. sojump. com/publicsurveys. aspx? keyword=%E5%BF%85%E8%83%9C%E5%AE%A2 http://www. cfi. net. cn/newspage. aspx? id=20060830001759 http://www. cnstock. com/paper_new/html/2009-04/29/content_69247463. htm http://pizzahutfranchise. com/the-investment-pizza-franchise-opportunities. php http://www. gmw. cn/03pindao/2004-04/30/content_20233. htm

Philosophy Of Life And Education Education Essay

The delay and grueling hours of survey and fulfilment of academic demands will shortly be over. I meet the chance of graduating from this University with a grade in Business Finance with assorted feelings. First, there is alleviation that all the hours that I have put in order to accomplish this stepping rock into the universe of concern have eventually paid off. Second, there is pride that I was able to carry through so much non merely academically but besides for my ain personal development within the continuance of my class in the University. Third, there is besides the fright that I feel comes of course to every alumnus as he steps out of a familiar environment and into an unfamiliar one. I know, along with every alumnus this twelvemonth, that the existent universe of work will be much tougher than the academia. However, I am confident that with my strong background in broad instruction and in my field of specialisation, I will be able to see my ends to fruition. There are three primary ends in my life at this peculiar clip which emphasize on household, personal, and societal duties. My first end is to take a successful calling as a man of affairs as I fulfill the household duty of pull offing the household concern. Having come from a traditional Eastern household, I am expected to take over the reins of the concern which my ascendants have labored to set up in order to procure the demands of the household. When I graduate, I will apprentice under my male parent until I have adequate experience to personally run the palm oil concern that my household owns. In my civilization, household ever comes foremost. This is my manner of honouring all the forfeits that my parents have done for me in order to supply me with a nice life and an first-class instruction. As my parents progress in age, it is the duty of the kids to take attention of them in their retirement. This is why my first major end at this point in my life is to instantly use all that I have learned to back up my household and prolong our support. My 2nd end is of a personal nature. Finally, I want to prosecute a alumnus grade in order to heighten my cognition in concern direction. Obtaining a maestro ‘s grade in concern disposal in the close hereafter will be of great aid to me professionally. On a personal degree, I recognize that larning does non stop and must be pursued continually. In add-on to executing the duties that one ‘s household expects of you, one should besides see one ‘s personal growing and development as a major end. My 3rd end relates to societal duty in relation to concern as a profession. During several categories I attended, I learned and appreciated the duty for concerns to do a positive impact to the community. I consider it an duty particularly for concerns rooted in the environment, like the oil concern. I had frequently considered puting up a scholarship fund for qualified yet disadvantaged kids in my community. There are many who are deprived of the basic demands in life such as instruction that need aid from those who can supply it for them. I do non believe that the impact of my instruction should interpret into doing the most addition for the benefit of the household concern I will shortly pull off. Rather, as Wood ( 1999 ) stated, the societal duty of concerns includes the designation and rating of concern results non sole of fiscal profitableness or a company ‘s wellbeing but by rules such as moralss and societal desirableness. I believe that ethical behavior of concern and profitableness are non reciprocally sole. Ethical motives and societal duty encouragement concern while at the same clip lending positively to the society in general. I recognize of class, that the universe is undergoing several societal, economic and political turbulences. The recent planetary crises and the outstanding dirts affecting planetary corporations Enron and AIG have had several deductions for the universe of concern. Political differences all over the universe – the Israeli-Palestine struggle, terrorist act, the atomic menace posed by Iran and North Korea, and the crude oil wars – affect lives and concerns around the universe. Peace remains elusive. Without peace, the chance of economic and societal development becomes even dimmer. Furthermore, the job of clime alteration besides presents several deductions for concerns including the concern that I will shortly take. Erratic conditions forms lead to drought, torrential rains, landslides, storms and works disease which will impact the palm oil concern negatively. My hopes for the universe within the following five decennaries are many. First, I look frontward to a more sus tainable and greenish universe. Because of my engagement in the palm oil industry, I feel that I can make my portion in conveying this about. In the palm oil concern, the environment is ever a primary concern. Palm oil companies are invariably pressured by environmental groups to cut down their environmental impact, which I think is merely fitting since the industry itself relies on sustainable environments to do their concerns grow. I believe that palm oil concerns should endeavor to implement schemes that would do palm cultivation work harmoniously and non negatively with the environment. Aside from saving and re-afforestation attempts, there should besides be clear waies in research and development to come up with ways for sustainable palm oil cultivation and to develop environmentally-friendly fuel. The palm oil industry presently presents an alternate to ozone-harmful crude oil energy with biodiesel and oleo-chemicals. It is of import that these attempts are carried on for the benefit of a greener universe. Second, I besides hope for a more socially responsible concern sector. One of the most dramatic realisations I had while in college is the judgement that most concerns operate with net income as the lone end. Several industries around the Earth have left devastated environments, deforested lands, and polluted Waterss. Furthermore, corruptness and maliciousness besides hound the corporate sector following the recent batch of dirts affecting the top foreman of fiscal corporations. I feel that supplying an illustration to other concern leaders and concern proprietors on working ethically in the behavior of one ‘s concern will be important. In this mode, I feel I can someday lend to making a more socially responsible concern sector. However wishful I am to see this hope realized, I recognize that most business communities refuse to take the ethical position. I believe that the perceptual experience of many in the concern sector is that net income is the primary purpose, the societal duty ends are simply optional. I believe that non being able to determine future concern leaders to go more socially sensitive is a defect of modern twenty-four hours instruction. Education in the schoolroom has failed to interpret into work forces and adult females who care about the universe and who are capable of looking at things from a larger position. This is one of the chief grounds I am thankful that my college instruction has become an empowering experience for me. In the past, I used to be apathetic to the events that form and reshape the universe. My involvement has merely been self-preservation and self-advancement. The twenty-four hours I stepped into the university, I resolved that I will make everything I can to stand out and do my household proud of me. However, the lessons and classs I have taken have forced me to re-evaluate my ain ends and positions in life. As C.S. Lewis stated, the emancipating character of instruction transforms a pupil from â€Å" an stubborn small package of appetencies â €  toward â€Å" the good adult male and the good citizen † ( qtd. in Dunn 1 ) . As I graduate, I hope to go that adult male C.S. Lewis was mentioning to. A college instruction has done so much in pitching me towards that way. First, a college instruction has developed my ability to believe independently. Because of the diverse lessons that I have learned inside the schoolroom, from the humanistic disciplines, doctrine, political scientific discipline, and economic sciences, I have become person who can believe for himself. Before, I used to organize no sentiments about most things or issues. Yet, a college instruction has made me more opinionative and comparatively free from the confines of traditional or conventional thought. Second, it has made me more critical of the sentiments of others as good. The inclination for pupils or kids is to trust on the wisdom of those who are more experient than they are. As I learned more and endeavoured to educate myself on issues that impact me as a citizen, I found that I no longer cleaving to what my parents or equals say and think. The more sceptered my head has become, the more I can show myself. Third, a college instruction has besides led me to appreciate diverse ness in assorted signifiers. The authorization that comes from instruction allows us to see the universe from a wider lens. By larning about different civilizations, theories, and contexts, I have become more occupied to the survey of history and civilization. I admit that, being of Eastern descent, I carry with me several biass and preconceived impressions about people, events, and issues. The more I learned, nevertheless, the more I realized that I was incorrectly in most of these beliefs. I have besides developed the accomplishment to set things into the proper context and justice with an unfastened and critical head. A college instruction has besides helped me understand the universe better. It has opened my eyes to a diverse set of doctrines and accounts of phenomena that I have ne'er even dared to cognize approximately. Before I started college, many things remained cryptic or dazing to me. For case, I failed to understand why Islamic extremism exists and why people would make hideous Acts of the Apostless such as suicide bombardment. I besides could non appreciate why there are feminist motions around the universe and why generative rights is such a immense issue. Because these subjects were discussed in category, my eyes were opened for the first clip. Although I admit that taking it all in posed a great trouble, the of import thing was, unlike in the past where I was blind to such issues or phenomena, I have now learned an account for them. I enjoyed most of the assigned readings and besides exhausted clip reading books that were of a personal involvement to me. Possibly the most memorable book and philosopher I greatly appreciate and find inspirational is Nobel Prize laureate Bertrand Russell and his books, including his autobiographies. I admire his glare and his echt concern for the human race, with this quotation mark from The Autobiography of Bertrand Russell: Three passions, simple but overpoweringly strong, have governed my life: the yearning for love, the hunt for cognition, and intolerable commiseration for the agony of world. These passions, like great air currents, have blown me hither and thither, in a contrary class, over a deep ocean of anguish, making to the really brink of desperation. aˆÂ ¦ This has been my life. I have found it deserving life, and would lief populate it once more if the opportunity were offered me ( Russell 3-4 ) . Russell ‘s eternal captivation with the human spirit is something I wish for myself. With all my experiences in college, I feel the demand to construct on that cognition more and more. In the past, I could see myself a inactive scholar. Largely, I take in whatever is being taught but ne'er truly do an attempt to understand or appreciate it. I besides consider myself a lazy reader, sing it a load to bury myself in a few pages of books and analyse its contents. My strong suit has ever been in Numberss and mathematics. My life in college has changed the manner I take in cognition. When I majored in finance, I was able to appreciate how Numberss and mathematic calculations are being applied in concern. This made me more interested and more committed to my specialisation. Furthermore, I have found myself prosecuting others when discoursing societal issues and showing my sentiment when I have something to state. These betterments with myself and my methods of larning I can impute to the broad instruction provided to me and the inspiration I derived from the books and philosophers I have read. A broad instruction creates the all-around person. This is what it means to me. Broad instruction plants under the premiss that the ultimate end adult male is to go â€Å" to the full human. † To be to the full human requires non merely that work forces can be able to believe but to interpret this thought into the public presentation of our responsibilities as members of society. Hence, broad instruction does non restrict itself to the remarkable undertaking of preparation persons for the work force. While fiting people with the accomplishments they need for future employment, broad instruction, harmonizing to C.S. Lewis ( 1999 ) , â€Å" conserves civilisation by bring forthing sensible work forces and responsible citizens † ( p. 18 ) . This is after all, what sets us apart from the animate beings. Men should move non merely out of the demand for self-preservation and needs satisfaction, they should be able to be free from basic appetencies and utilize their head to ju dge what is right and incorrect for them and for society. Before, I failed to appreciate why I need to take classs in political scientific discipline or sociology or doctrine – topics which I felt were irrelevant to my major in concern finance. I realized subsequently on that an instruction with a strong background in broad humanistic disciplines provides a more comprehensive position of the universe and completes the partial position provided by one field of specialisation. If I focused on one country of cognition, my position of the universe is uncomplete. My capacity to believe critically, justice, and move upon that judgement would be limited because I lack the information demand to do wiser determinations. Hence, I began to look at my major as merely one piece of the mystifier and that cognition requires several pieces to be patched together. Several of these pieces could merely be completed with general cognition provided by a broad humanistic disciplines instruction. Broad humanistic disciplines provides all-around instruction by giving pupils a diverse organic structure of cognition and the critical thought, analytic and scrutiny accomplishments to set these thoughts into their proper context and do sense out of them. Decidedly, the broad humanistic disciplines classs I took had a liberating consequence on me. As I earlier stated, I used to look at the universe in mere Numberss and mathematics. I cared less for what was go oning around me – in the societal and political environment. As a consequence, I had several prejudices and biass which were a contemplation of my hapless background in general cognition. In this mode, instruction as a whole has become non merely necessary, but meaningful to my future profession and to my personal life. After I graduate from college, I intend to prosecute a maestro ‘s grade in order to go a fiscal analyst. I expect to read several books in finance and concern disposal. Along with these required books, I besides intend to read on moralss, doctrine and the environment to assist me accomplish the three major ends I have set for myself as I graduate from college. I want to be a good man of affairs non merely in footings of the profitableness and productiveness of my concern but because of how ethically sound I conduct my concern. My personal mission statement in one sentence is: To go to the full human and being a positive force in society by populating with honestness, compassion, and duty. In the professional sense, I want to be able to take the household concern with efficiency and profitableness while adhering to the ethical criterions and rules required of socially responsible concerns. I want to lend, in my capacity as a future man of affairs and fiscal analyst, to a greener and more sustainable Earth by advancing environmental-friendly policies and researches. Furthermore, I want to put an illustration for the concern sector in making concern responsibly.

The Resiliency of the Adjutant General Officer Article

The Resiliency of the Adjutant General Officer - Article Example The department is responsible for the total security of the state; thus, vital to the military. Basing on the ideologies of Shamir, the officer may experience short-term challenges that show stress-related concerns. Therefore, the officer should find the best method to manage the symptoms associated with stressful areas and improve performance. The resiliency of such an officer is evident in divergent pillars strengths such as family, emotional, sacred, bodily and communal. In relation to family, a secure, helpful and caring family is vital to the life of the officer as it assists in dealing with tension. The army itself is a family; thus, the officer has the opportunity to count on friends whenever there is a need. Interestingly, the officer has enormous responsibilities and can overcome this challenge by selecting soldiers who will act as assistants creating more time with their family. Seward asserts that physical resiliency of the officer is paramount as it does not involve the outside body fitness but also how the officer achieves divergent processes under tension; thus, the need for aerobic strength, vigor, and patience. This involves a body in good physical shape built and maintained using quality behaviors and sane choices. In order to have a healthy body, the officer should frequently exercise. In addition, proper eating habits are important. The Adjutant General Officer exercises emotional resiliency; thus, their ability to tackle difficulties with hope. Indeed, the officer may encounter rude and irresponsible soldiers; thus, should always exercise calmness in order to think clearly and make right decisions. In addition, it is fundamental to minimize anxiety as it creates concerns that will spread to others.

Maritime Technology 3 Essay Example | Topics and Well Written Essays - 1500 words

Maritime Technology 3 - Essay Example This propeller shaft which was geared to the main engine shaft subsequently rotated causing the propeller blades to swirl in a circular fashion. The momentum created by this swirling of water towards the rear end of the ship generated a forward thrust helping the ship to forge ahead. This water thrust at the rear end of the ship was made to flow across a rudder plate kept a certain angle; the angle fixed from atop the bridge by the ships navigator. This thrust achieved was at a particular angle thus helping the ship move ahead in the required direction. (Mc George H.D, 1995) Most of the marine ships use diesel engines with low power to weight ratio. Hence the power generation is intermittent; the flywheel attached to the propeller shaft ensuring uniform rpm. Another area of great concern for conventional propellers is the challenge to overcome cavitation. The presence of cavitation limits the ship speed to 35 knots. Increasing the speed of the ship creates low pressure areas around t he propeller leading to the creation of small bubbles around the propeller. ... The rotation of these blades arranged in pusher or tandem configuration generates the required momentum. The steering on the other hand is achieved by rotating the pod by means of slewing gears that are attached to the hull. Rotation of the pod deflects the flow of water to a new direction thus achieving change in direction. (Beijerinck H.C.W & Terwisga T.J.C, 2006) Since the pod can be rotated about its mounted axis, it achieves thrust capabilities in any direction. This therefore facilitates the forward motion, reverse motion and the rotation of the vessel about a small turning radius with the same efficiency. A propulsion pod consists of Fix pitch propeller, Electric AC synchronous motor, Exciter, Propeller shaft, Propeller shaft thrust and support bearings, propeller brake, Propeller shaft seals, Bilge pumps and the control equipment on the inside. The electric motor that is used in pod is stimulated by a frequency converter which is capable of developing full torque in either di rection across the entire speed range. (Azipod Propulsion, 2002) Source: ABB, Viewed on 10th March 2011 This facilitates in fixing the speed of the propeller for different liquid hydrodynamics and therefore achieving optimum propelling efficiency. The outside part consists of the Steering system, lubricating oil equipment and the ventilation unit. The first series of propulsion pods were equipped on M/V ‘Seili by ABB in 1990. (Azipod Propulsion, 2002) Advantages Podded Propellers offer the following advantages over the conventional Propellers. 1. The degree of automation achieved is higher and chances of mechanical upsets are reduced due the system employing electrical energy. 2. The

Organizational Behavior of Cutter Aviation Research Paper

Organizational Behavior of Cutter Aviation - Research Paper Example The research paper "Organizational Behavior of Cutter Aviation" talks about Cutter Aviation, strongest Fixed Base Operator of America that provides aeronautics service to the industry of General Aviation since 1928. It has been a dominant service provider of General Aviation for the United States.Cutter Aviation believes in following the procedures of team building to encourage innovation. It has been providing a training program to all its employees to stimulate innovation. Their aim behind providing these programs is to enhance the skills of its employees, their decision-making ability and communication skills. The training programs have helped the employees to acquire knowledge in achieving their activities. This makes the company develop new innovative products. The organization faces the problem of bureaucracies in developing new strategies. These bureaucracies can be reduced by following two stages: Firstly, identifying the obstacles prevailing in the company and secondly, the company needs to identify the strategies that are required to implement change. Finally, the organization should implement and follow the steps accordingly. However, before implementing any change, the organization should make employees understand the importance of proposing the change. Cutter Aviation has been able to build an environment that is collaboratively supported by all the experts of the organization. The company supports the employees by providing them sufficient resources and training programs.

History Essay Example | Topics and Well Written Essays - 1500 words - 17

History - Essay Example Most of these movements were socialist in nature advocating for equality of persons regardless of their race, gender or sexuality. However, the antiwar movement stood out since it campaigned against the extensive involvement of the United States in the Vietnam War. The social upheaval of the sixties occurred between the late 1950s and early to late 1960s, resulting in public unrests and mass action against the government and other organizations of the day. The campaigners were demonstrating against what they termed as causes of society deterioration; asking responsible authorities to implement changes that would see society improve. First, the movement condemned conservatism, which is the refusal of components of society to accept change. The world had become accustomed to the way things were such that no one wanted any change. Second, the social upheaval wanted an end to the culture of social conformity, where everyone did what they did not because they wanted to, but because it was acceptable to do so. For instance, social conformity made people do evil deeds because they are socially acceptable, instead of doing what is right and taking responsibility for one’s actions. Finally, the social upheaval resulted from the American economic and work force resources that the government was using to support the war in Vietnam. The result of the social upheaval was, among others, the change in social structures to accommodate behaviors perceived as taboos. The aim of this paper is to discuss the social, political and economic conditions of the 1950s that lead to the social upheaval of the 1960s (Land and Lettieri 209). According to Henriksen (28), the atomic bomb that America dropped on Hiroshima had severe effects on the American society. She postulated that the scientists’ attempt and success in breaking down an atom into smaller pieces, resulting in literal breakdown of the American

Course work (see uploaded file) Essay Example | Topics and Well Written Essays - 2000 words

Course work (see uploaded file) - Essay Example In this vein, a firm might use price discrimination to increase sales. Secondly, a firm might use price discrimination to prevent other competitors from capturing the market, for example, a UK business might want to lower prices in a town where cheap Chinese competitors are trying to penetrate. CONDITIONS FOR PRICE DISCRIMINATION For price discrimination to be successful, there are two main conditions that must exist in the market (Tutor2u). First of all, there must be differences in price elasticity of demands between the different markets within which a firm operates. This means that the firm can increase the price of a given product where the demand is inelastic because customers will buy anyway. However, where demand is elastic, prices need to be kept low because it can lead to buyers refusing to buy and the firm will run at a loss. The second condition necessary for price discrimination is that there should be barriers that prevent consumers from switching from one supplier to a nother. This is because when consumers have options, they are likely to switch to other brands or substitutes when prices fluctuate in a way they find unfavourable. Price discrimination could be beneficial or detrimental to consumers. It could be beneficial when the prices are reduced or promotions are run. However, there are some price discrimination drives that exploit consumers. ... Another example is the fact that some professional groups like Chartered Institute of Marketers charge different prices for students and different prices for members although they can access about the same privileges. Second degree price discrimination occurs when prices are varied based on quantities of goods purchased by a consumer (Fisher & Waschik, 2002). An example is a situation where a person gets a discount for buying a certain quantity of goods. Another example is where businesses run promotions where people are given extra units of a product when they buy a given quantity of the product. Third degree price discrimination is where a producer segments the market and varies prices because of distance, cost of production in zones or customers’ identity (Fisher & Waschik, 2002). An example is where a factory based in London charges clients in New York more. Another example could be the situation where university students from some countries are charged higher fees. CASE S TUDIES When Tesco sells Digestive biscuits at ?2.10 per pack, but also have a ‘3 for the price of 2’ offer, there is a second degree price discrimination. The rationale for this is that Tesco wants to increase sales and with a large volume of biscuits sold, they will get a large volume of profits which will be collectively higher than the profits they would have gained by selling a smaller quantity of biscuits at ?2.10 per pack. Also, the profits will come in faster and they can use the revenue for other business activities. In a situation where the return train fare from Birmingham to London is ?35 at 11am, but is ?200 at 8am, it can be concluded that the managers are utilising the principles of the elasticity of demand here. This is because at 8am, there is a high number of people ready

Group Behavior in Organizations Essay Example | Topics and Well Written Essays - 2250 words

Group Behavior in Organizations - Essay Example During its production of goods, the company has a history of using group work for effectiveness and efficiency in production. Productivity is the most important component in any organization; members of the group should learn how to work together. For organization’s initiatives and goals to be achieved, group productivity should be enhanced (Kowert, 2002). Any successful supervisor or manager should be in a position to guide his employees in a way that encourages an increase in performance. Being a hired consultant in Johnson and Johnson, I found that the organization has four main problems which will be analyzed in this paper. Thesis statement: This paper will analyze in essence the problems in Johnson’s and Johnson’s Company, the effects caused by the problems upon the group’s production, as well as recommendations to be adhered to in order to increase the productivity of the groups in the organization as seen below. Role conflicts occur in organizations due to individuals having many conflicting responsibilities in the organization. Research has depicted that most role conflicts come as a result of multiple obligations being given to varied groups (Kowert, 2002). Through the research carried out in Johnson and Johnson Company, it is clear that mid-level supervisors are given a lot of roles which include working with the employees they supervise. This has led to many role conflicts with the supervisor. This is due to the fact that the supervisor is expected to report underperforming employees and to collaboratively work with the group. Moreover, conflict roles are also caused by employees being asked to perform tasks which contradict at the same time. For instance, an employee can be asked by one supervisor to increase quality control on Johnson’s baby powder.

Will the Starbucks maintain its market leadership over Mc Cafe Essay

Will the Starbucks maintain its market leadership over Mc Cafe - Essay Example Now the primary question which is raised here is; â€Å"Who is the leader and will be in future as well?† Another well established and well reputed brand is Mc Cafe which is the creation of repute firm McDonalds. Following is an extensive analysis to deduce which of the two firms will remain the undisputed giant in the years to come. History of Starbucks In the time when world around us is extremely fast paced and competition in the market has squeezed every firm in the industry and where only survival of the fittest is possible, a giant market leader in the coffeehouse industry pops up in head, Starbucks Corporation. Starbucks was founded by three partners Jerry Baldwin, Zev Siegl and Gordon Bowker in 1971 in Seattle, Washington. Starbucks is by far the largest coffeehouse company in the world and it is still expanding at a rapid pace (Spanogle et. al. 2007). Starbucks went international in1990 for the first time when they inaugurated a store in mid 1990s the time during whic h the firm was opening a new store every single day and this speed of expansion that carried on into 2000s and now approximately around one third outlets of Starbucks corporation are overseas. Starbucks had expanded up to one sixty five outlets in 1992 at the time of its initial public offering (Abrams, 2003). Over view of Starbucks: Starbucks sells a wide range of coffee and other beverage products in order to provide a delightful experience to its customers. Its products mainly include  drip brewed coffee,  espresso -based hot drinks and coffee beans. Starbucks has restricted itself to coffee products but it also produces salads, hot and cold sandwiches, Panini, pastries and snacks which provide the consumers with what the company calls a â€Å"distinctive Starbucks experience†. The success and growth of Starbucks Corporation can be attributed to a person who saw the potential and opportunity in the product when no one else did: Howard Schultz. This aspiring entrepreneu r was appointed as the marketing head in 1982 and upon his return to United States from Italy, he realized the opportunity that could materialize into the repute that Starbucks today has. The following words are attributed to him: â€Å"Lets create a community gathering places like the great coffee house of the Italy in United States†. Although his idea was not highly appreciated by the top management at Starbucks, nonetheless they did allow him to experiment this new idea at one of their retail stores (ABA, 1997). Moreover, the new idea proved to be a huge success and that’s when Schultz started another company with the name of ll giornale. In 1987, Schultz convinced a group of local investors to buy Starbucks when its original owners decided to sell their coffee business along with the name. Schultz incorporated Gionrale outlets with Starbucks and finally started with the conversion of six shops into graceful and

TV Personalities Essay Example for Free

TV Personalities Essay For this project, I chose the television show House. In this particular episode, Dr. House and his team of doctors face the problem of diagnosing a man who came into the ER at the hospital after fainting. There are no clear symptoms that point to a single medical diagnosis. The second part of this episode deals with House and his best friend Wilson. Wilson is in a relationship with another doctor that House doesn’t particularly like and House is determined to get his fair share of time with his friend, away from his girlfriend. I have obviously chosen Dr. House has my subject for this paper. House is a very brilliant and gifted doctor. He is also very obnoxious, overbearing, rude, egotistical, sarcastic, arrogant, and cantankerous. House will gather his team to brainstorm about what the symptoms that patient is showing to see if they can come up with a solution and House will override everything they say. He will ask for a vote on the way to proceed and then disregard the vote for whatever he wants. Looking at Freud, it would appear that House’s id is still very strong and was not tempered very much by the Ego and Superego. House is still very demanding, irrational, illogical and impulsive in the way he lives his life. By studying Freud, it would also seem that in the stage of the Superego that House failed to fully develop the ego ideal and the conscience. The Behaviorist’s view would show that the way House is today is a result of environmental stimulus that was reinforced or strengthened in some way while he was growing up. It would suggest that his parents might have praised him when he acted out and was disrespectful instead of properly chastising or punishing him. The social cognitive view of personality suggests that House has a high self-efficacy. He is very sure of his talent as a doctor and therefore excels at his job. This view of personality also will show that House is very comfortable in his environment. Because of his comfort level, his behavior of being rude, sarcastic, and so on, will continue because he receives the type of reaction from others that it seems like he expects. This theory suggests that if the environment changes, his behavior should adapt to the change. In this episode, the only time his behavior changed in any way was when he was out with his friend Wilson. Although he was still sarcastic, overbearing and obnoxious, it was not as bad as when he was in the hospital. House’s real self and his ideal self are pretty well matched when looking at the humanistic perspective. House is very confident and sure of himself in what he is and who he wants to be. According to Rogers, House would be a fully functioning person. When House was growing up he must have received unconditional positive regard from his parents. The last personality theory that will be touched upon will be the trait theories. The one trait theory will be scrutinized is the Big Five. House is definitely an extrovert. He obviously likes being the center of attention. This was shown by the way he directed the attention to be on himself whenever he gathered his team of doctors together. House would also score very low on the trait of Agreeableness. House was very rude, irritable, and aggressive. A very high score would be given to House on Openness. House shows that he would have to be very curious and imaginative when looking for the causes for symptoms that patients emit and finding a diagnosis and cure for those symptoms. House was also very nonconforming. House definitely did not conform to the expectations of the way a doctor should conduct himself, whether with other colleagues or with patients themselves. House would also score high on Conscientiousness. He might not be the easiest person to be around, but he is very reliable. He would also have to be an ambitious person to become the brilliant doctor that he is. Neuroticism is hard to decide. Although House shows that he can be very temperamental, which is a characteristic for the higher score, it did not seem that he exhibited the traits of worrying, insecurity, and anxiousness. On the flip side, the low scoring characteristics for Neuoticism are calm, secure, relaxed and stable. House could probably be described as stable, but the other characteristics don’t really match him either.

Evaluation and Case Study of Factors and Implementation of Organization

Evaluation and Case Study of Factors and Implementation of Organization INTRODUCTION Organizational change is a very common idea found among successful companies. In making the business productive it plays a significant role. In the early 1990s due to increased competition in global economy, new technologies, expanding markets results in more rapid change. As a result the management practices had been revived. Normally most people have negative opinion towards change. This is because of their doubts of loosing something. They have the incomplete knowledge of change process and this will affect their job personal life and workload. To overcome these negativity Oliver Recklies gave the idea that management need to keep in mind those negative side-effects of change in order to achieve the expected positive results. All the employees of the organization should participate for the success of project. The process of change is the nonstop implementation of policies and structures to changing external conditions. Change is not the exception but a steady ongoing process. As J ohn Naisbett said that a society in which we are living have been moving from old to the new. And we are still in motion experiencing disorder. The environment of the organization, even socially and politically is always changing. We are always looking for newer and better ways. The globalization and inter-cultural exchange had made us more vulnerable to change than ever before. The organizations need to adopt new technologies and management ideas for betterment. The strategic importance on cost cutting and competitive makes it even more important to be open to change rather to resist it. It is very important to accept the change in any form like functional, structural, operational, or strategic. It is very difficult to define change because every organization has different criteria. Each organization has different challenges. Also each organization has different policies, resources, and culture. The leader of each organization has different aim and objectives. In order to survive in the period of crises each organization should adopt the change without any fear.(Supreet Ahluwalia and Vivek Joshi ,2006) Factors influences change There are different factors which influence organizations change. These factors can be external (technology, Government policies, social pressure, cost of raw material etc) or internal (change leadership, decline in profit, union action etc).in this era of globalization the most commonly seen organizational changes are implementation of new technologies, mergers and downsizing. In todays business environment and within its competitive landscape, change management is managing to ensure the business right across the organization and within each of it individual departments is continually embracing change and reviewing and adjusting within itself to do the best it possibly can, to get to the top, to stay on top. Change Management is a firms capability to implement and maintain changes to its strategy, structure and its people that will result in the firm achieving the business results it seeks. Change management is a method of business improvement for organizations. Figure 1: Phases of change If organization is not in a constant phase of change management and continually assessing and adjusting then business may be at best average within its industry. For some organizations this means they may be going backwards and eventually bankrupt. Only those companies can survive which can adapt to changes. This change management model follows all other change management models and theories. Every organization can be summed up to be a combination of these three elements which includes the structure, the people and the strategy. Any change in any area of an organization will affect at least one or all of these elements. Figure 2: Three elements for change The structure is the systems are process with physical resources that support the strategic objectives of the organization. Change management specialists will review complete and properly structured management operating system (MOS). The people involved in this process are stakeholders, resourced people, and management team. All people involved n this process should be well informed and focused on the right things. They should communicate with each other. Figure 3: people involve in change management The strategy is the method for achieving the target of the organizations existence. Change management strategy provides the road map used for directing organization from where it is now to where you want it to go. The Skill of Change Management Managing change in the workplace while ensuring the operations strategy is on the right path. This can be achieved by the support of people and structure elements towards achieving the organizations corporate strategy. Phases of Change Organizational change involves the fear of loss inherent in this process, and this loss is mostly felt by employees. The Kubler Ross Grief Model addresses the emotional issues associated with change. The four emotional states experienced throughout the change process may be expressed by employees in behaviors that are obstacles to the process of change. This model consists of four stages given below: Denial The first emotional state during change is denial. This is the stage in which employees dont believe this is happening to them. They have certain fears and these fears should be addressed during this phase. This fear can be reduced by taking them in confidence. Fear and mistrust need to be replaced by acceptance. Resistances to change The second emotional state is resistance to the change process. Resistance is natural reaction to change. Eric B. Dent and Susan Galloway Goldberg (1999) discuss their research on the origins of this concept and the prevalent idea that managers must overcome this resistance or are doomed to failure. Kurt Lewin, the mid-twentieth-century social psychologist, introduced the term resistance to change as a systems concept affecting managers and employees equally. As we know that people of any organization are generally resistant to change. According to Scott Jaffe resistance is a stage that ends as individuals begin to separate from the past become more confident of their capability. They play their role by their participation to reduce resistance to change. For example, competition might force a business to organize work around processes to improve operating efficiencies. Functional departments involved in these processes would be combined. Employees might not see a need for this chan ge. The reasons for change must be fully explained so that employees understand why it is necessary to embrace the change. Chew (1990) studied the case of Machinists Mutiny. In his study he revealed that due to poor planning and implementation the change is stopped due to employee resistance. This article also includes expert opinions that organization should adopt so they have better implementation of change Once people are convinced that change is necessary, its time to move forward with implementation and consolidation of change. The response to resistance is very important. Forcing compliance may increase resistance. Those affected by the change probably know a lot about what is required to implement something new, and their input is important to the change process. The degree to which employees will support your new initiatives depends on how many of their recommendations are used. Explorations The third emotional state encountered is exploration. employees will search new roles if they are incapable to stop the changes. In this stage both individual role as well as the group role are defined. it is important that unresolved issues that continue to surface be addressed during this stage. One should be ready for the negative reaction of the employee. Those individuals should be warned at the first sign of falling back to old behaviors. This negative reaction can be changed to the positive if trust can be created among groups. Commitments The final emotional state is commitment to the change initiative. Mutual commitment is established for the change effort. Obstacles have been removed and the focus is on successful implementation of the changes. Models of the change process After years of failed change efforts, researchers are saying that knowledge of the change process is critical. To thrive we need to know successful change during and before the change process. There are five most popular models of the change process(Lewins three-step change model, Kotters eight-step plan, Harriss five-phase model, Fullans change themes set, and Greiners six-phase process).But in this report we will discuss only two of them. Lewins Three-Step Change Model Change involves a sequence of organizational processes that occurs over time. Lewin (1951) suggests this three step process. These steps mostly involve reducing the forces acting to keep the organization in its current condition. Unfreezing Moving Refreezing Figure 4: Three step model Unfreezing: This is the first step which is accomplished by introducing new information that points out failure in the current state. Crises often arouse unfreezing. This crisis can be due to increase in employee, demographic shifts, and an unexpected strike. This is not necessary that during unfreezing crisis always occur. For determining problem creating zones in organizations financial data, climate analysis and enrollment projections can be used. Moving: Once the organization is unfrozen, it can be changed by moving. This step generally involves the change in structure, development of new standards, attitudes, and behaviors. Some changes may be minor and involve a few members. Refreezing The final step is refreezing which involves stabilizing the change. In this step mostly the changes in organizations policy, organizational culture, or modification in organizational structure often accomplishes. Kotters Eight-Step Model John Kotter (1996) of Harvard University developed a more detailed approach for managing change which was based on Lewins three-step change model.the steps involved in this model are given below. Establish a sense of urgency: Unfreeze the organization by creating a convincing reason for change Create the guiding coalition: Create a cross-functional, cross-level group of people with enough power to lead the change. Develop a vision and strategy: Create a vision and strategic plan to guide the change process Communicate the change vision: Create and implement a communication strategy that consistently communicates the new vision and strategic plan Empower broad-based action: Eliminate barriers to change, and use target elements of change to transform the organization. Encourage risk taking and creative problem solving. Generate short-term wins: Plan for and create short-term wins or improvements. Recognize and reward people who contribute to the wins Consolidate gains and produce: The guiding coalition uses credibility from short-term wins to create more change. Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process. Anchor new approaches in the culture: Reinforce the changes by highlighting connections between new behaviors and processes and organizational success. Develop methods to ensure leadership development and succession. Types of Change Change can be categorized into four categories, structural change, cost change, process change, and cultural change. Structural change occurs when there is an alteration to the companys organizational structure. This reorganization may occur due to a merger. For instance, an organization that is intent on increasing its innovation may reorganize its traditional functional structure into a more flexible matrix structure that uses small, self-managed teams. Or, an organization that is expanding into new markets may adopt a divisional structure in which different geographic locations operate nearly independently of one another. Cost changes are those that occur when an organization attempts to reduce costs in order to improve efficiency or performance. Major adjustments may be made to departments to cut costs; reducing budgets, laying off employees in redundant positions, and eliminating nonessential activities may all be a result of cost change. Process changes are implemented to improve efficiency or effectiveness of organizational procedures. This may occur in production settings; there may be changes to how a product is created, assembled, packaged, or shipped. Or, in a service organization, there may be changes to the procedures used to accomplish work; new computer systems may create the need to change how paperwork is completed, or a new manager may modify the process used to handle customer complaints. Cultural changes are the least tangible of all the types of change, but they can be the most difficult. An organizations culture is its shared set of assumptions, values, and beliefs. A prototypical culture is the very bureaucratic, top-down style in which stability and standard processes are valued. When such an organization tries to adopt a more participative, involved style, this requires a shift in many organizational activities. Primarily, manager-employee relations are altered with a change in culture. IMPLEMENTING CHANGE Management must take a number of steps for the proper implementation of change. The first step in implementing change involves people of higher management and executives. For instance, in an organization new computer system is to be installed in all its areas. Then they major personal are not only top management but also lower-level managers who supervise the employees for the use of the new technology. A different set of key people would be involved in a cost-cutting change. If the company is reducing its operating budget in a specific division, the managers of that division and also human resources personnel should be involved. The human resource department is involved if there is change to personnel policies or in which demotions, transfers. After key personnel have been identified and properly involved, the second step in implementing change is to develop a plan for effective transformation. The plan should help to define the responsibilities of the key people involved. Also set short-term and long-term objectives for the changes. Because change can be unpredictable, the plan should also be flexible enough to accommodate new occurrences. The third step in implementing change is to support the plan. This involves the management. This key step involves facilitating employees to accept the change. The organization should provide the basic support to the employees like training, reward system etc. if organization does not provide this kind of support there are chance for the failure of the plan Change process is the final step of booming change implementation. Communicating with the employee about the change and its importance will be very helpful through out the process. As we know that change can create fear in employees and to relax them increased communication can help a lot. Managers should carefully listen to all their question and their advises to overcome their fear. Creating opportunities for employee feedback, such as holding meetings or having an open-door management policy may facilitate change more successfully. (Wendy H. Mason ,2003) Abrahamson (2000) gave the view of Change without Pain. The main theme in this article was change must take place, but change does not always have to be disturbing to the organization. The author believes companies should intersperse major change initiatives among carefully paced periods of smaller, organic change, using processes. The author calls this tinkering and kludging. By placing small changes between large changes, companies can manage change through dynamic stability. Dynamic stability is a process of continual but relatively small change efforts that involve the reconfiguration of existing practices and business models rather than create new ones The goal of dynamic stability is to create a change which can be sustained long term, not just in the short term. To achieve dynamic stability the big and small changes must be done at the right time, at the right pace and the organization must tinker and kludge. Tinkering is taking a current process and making small changes to it . This is done at a low cost to the company and the results are often very quick. Kludging, on the other hand, is tinkering but on a larger scale. Kludging looks at outside resources for improved parts or processes and looks at the unused resources within the company. Many companies do not realize they have resources not being used because the processes using the resources are to slow to fully utilize the capacity of the resource. CASE STUDY This case study was based on a company called Trail Manufacturing which produces cable crane components. This study was done by Chew(1990).The company was a mid-sized company set up to run high volume jobs on manual equipment. But with todays economy and competition, Trail determined the best money was in low volume jobs. The President of Trail decided to bring in new technology to replace the old machines. He researched the new machines and decided to bring in eight flexible manufacturing cells which would replace twenty-eight old six-spindle screw machines. Since this was new technology and training would be needed a plan was laid out to set up teams, one for each cell, and the company would phase in the new machines. Each team would be trained and then they would construct and run their own cell. Once one cell was on-line a new cell team would start up until all eight cells were on-line. The first five teams went through the process fine, but at team six the company had a problem. Team six consisted of men who had been at the company many years. The team went to the president and told him they refused to switch over to the new machines. They felt the old machines were running fine and the new machines did not show the expected improvements, so they wanted to continue working on three six-spindle screw machines. At this point the president had to determine if he wanted to keep going with the project or alter it to keep some of the old machines. Some management personnel felt that if the new cells were going to work, a clean break had to be made from the old machines. Others felt that since the productivity gains were not being seen yet by the new cells, the possibility of keeping the old machines for a short time might be a good idea. The case ends without a decision being made by the company. Four experts in operations management give their opinions on the situation. Only one out of the four said the company should continue on with the original plan and if t he members of team six leave the company then it is the price to be paid for progress. The other three are quick to point out the president made a wrong assumption in the planning. He assumed that by bringing in new technology productivity would improve. This is a wrong assumption because technology is only as good as the company and how the company works. One of the experts points out truly understanding how the whole system plays together, and not just implementing the latest technique, means bridging the gap between the emotional and the technical. The president did not see that by bringing in new technology it would change the culture of the shop floor. Men who had years of experience on the old machines and were in seniority would be at the same level or lower than the younger more computer literate employees. This would be a big culture change for the employees. Most of the experts suggested slowing down the remainder of the cell startups and specifically addressing the concer ns of the men on team six. If team sixs concerns are not addressed there could be more problems with the rest of the teams. This article showed a good picture of how a company has to go about major changes, especially ones affecting the culture of the company. The expert opinions enhanced the article and I would highly recommend this article because it is an example of a case that is played out in companies all over. CONCLUSION Today change is the necessary of survival and a way of carrying out your business. Every Organization or firms should under go change with the passage of time otherwise will survive. This change along its success also brings fear of employees to come out of their comfort zones to uncomfortable zone.this leads to resistance to change. How effectively and efficiently the top management and leadership within the organization address these issues and how well are they prepare to handle the resistance will decide the faith of the organization and its success in implementing change. The importance of good communication system and the role it plays in make change process smooth and less painful can not be undermined. RECOMMENDATIONS Following are some recommendations. Managers should improve their interpersonal and communication skills so that they could help their staff overcome the pains associated with change. Tell people the truth and give as much information as you can. Keep giving information as soon as possible. Give them time to digest the news. Give them time to vent there might be anger because this is normal reaction. Listen to staff and their concerns dont interrupt them so they can reduce their fear. REFRENCES Abrahamson, E. (2000). Change Without Pain. Harvard Business Review, 75-79. Chew, W. (1990). The Case of the Machinists Mutiny. Harvard Business Review, 4-8.) Dent, Eric B., and Susan Galloway Goldberg. Challenging Resistance to Change.' Journal of Applied Behavioral Science (March 1999): 25. Kotter, J. P. (1996). Leading change. Cambridge, MA: Harvard Business School Press Lewin, K. (1951). Field theory in social science. New York, NY: Harper Row. Oliver Recklies Managing Change Definition und Phases in Change Processes www.themanager.org/strategy/change_phases.htm. (accessed on 12 of November) Supreet Ahluwalia and Vivek Joshi (2008)managing Change in an Organization. http://www.indianmba.com/Faculty_Column/FC707/fc707.html (accessed on 13 of November) Wendy H. Mason (2003) ManagingChangewww.referenceforbusiness.com (accessed on 12 of November)

Vicky Green Case Essay example -- Ethics Theory

The Vicky Green Case Right to be Informed:   Ã‚  Ã‚  Ã‚  Ã‚  Since key personnel of other companies are certainly going to face the risk of losing their jobs if they decide to accept the K.I., Koke International, 50 percent raise, then Vicky must consider the key personnel’s right to be informed about the aftermath of such a decision. Wendy McGee, Vicky’s boss, has made it clear to her senior staff members that key personnel of the other five player companies will be fired once they finish training K.I. employees. Vicky must consider the fact that those key personnel have the right to be informed about K.I.’s future plan, which will affect their careers.   Ã‚  Ã‚  Ã‚  Ã‚  It was not clear whether the orders that Wendy passed to her senior staff members will be mentioned to the top corporate people or not. Vicky must acknowledge the right of those top people to be informed of what Wendy has in mind. It is her job to make sure that these corporate people are aware of all consequences since K.I. could face antitrust issues by going forward with such a plan. Vicky must not let such orders pass without informing these corporate people. Do No Harm   Ã‚  Ã‚  Ã‚  Ã‚  Vicky must avoid harming the powerless versus harming the powerful. The powerless in this case are the other stores that are going to compete with K.I. in the New England states region. Vicky is in charge of coming up with a unique pricing strategy that will run the competitors out of business within an 18-month period. The other competitors’ stores are considered powerless when compared to the gigantic and powerful Koke International. Vicky must consider the harm that is going to affect the powerless stores, which will lead them to bankruptcy according to Wendy’s plan.  Ã‚  Ã‚  Ã‚  Ã‚  Vicky must also consider harming many versus harming few. The many in this case would be employees of the other five major players in the region and the few are K.I.’s employees. If the plan is successful then K.I. becomes a monopoly in the region while the competitors go out of business leaving their staff unemployed. Therefore Vicky must be concerned about the harm that is going to affect the many left unemployed versus the harm that is going to affect the few at K.I. Duty:   Ã‚  Ã‚  Ã‚  Ã‚  Even though Vicky is considered a new employee at K.I., that should not stop her from striving to amend the company whenever there is an opportunity. Vicky must acknowledge the du... ...fusal to continue on with the plan will cost the company extra time and effort. The company will be required to come up with a new pricing analysis, which might discourage the company from continuing with the plan since it will cost them time and effort. Therefore K.I. might lose its share from New England’s market. However, K.I.’s loss is a gain to the other stores in the New England states region. With K.I. out of the way the stores in the region will continue to operate in a healthy competitive market. If K.I. chooses not to dominate the New England market, which will eventually lead to dismissing Wendy’s plan, then such a decision would be beneficial because K.I. will avoid antitrust issues. However, Vicky’s reaction may vary. Vicky may oppose the plan and challenge her boss right after the meeting by persuasion and convincing. If this action doesn’t work, then Vicky may take it to the next level, which is to inform the top corporate people of what unpleasant consequence might they face from the federal government if they accept the Wendy’s plan. If this action also doesn’t work, then finally Vicky must report the plan to the federal government, so the law will take action.

Essay --

As increasing rates of complementary and alternative medicine (CAM) are becoming intertwined within traditional western practice, it has begun to present itself as a social conundrum. It is believed that the first practices of alternative medicine date back to the mid eighteenth century where as ancient Egyptians were using forms of traditional medicine in the early 5th century BCE. Because it has not been practiced as long as traditional western medicine, it has been framed as a social phenomenon. Its growth is curious in that it is beginning to surface in â€Å"countries were Western science and scientific method generally are accepted as the major foundations for healthcare, and â€Å"evidence-based† practice is the dominant paradigm† (Coulter & Willis 2004). Current US policy and government regulations, like the National Center for Complementary and Alternative Medicine, have allowed for CAM to become an integrative part of modernity. This paper examines how the def ining of CAM has influenced past and present societal reforms and how the lack of a singular, all encompassing definition was once problematic in CAM’s ability to converge with traditional western medicine. However, due to the growing appeal of CAM’s treatment methods, economic and political factors have paved a path a successful integration into modern medicine. Unorthodox systems of medicine were first developed in Europe and the United states in the late 1700s but were not completely adopted by doctors until the 1800s. Traditional, or orthodox medicine was established in the West through a process of â€Å"regulation, association, institution building and systematized medical education† (Coulter & Willis 2004) and any form of deviance threatened that. During the Revolutionary ... ...lternative medicine. It is one of the determining factors of a successful healing process and is often inhibited by the limitations of traditional medicine. Many of these movements have included criticism of traditional medicine and a promotion of responsibility of self (Goldstein 2002). By doing so, patients are able to empower themselves through taking control of their treatment instead of playing a passive role in the process. The societal acceptance and popularity of complementary and alternative medicine contains many facets of reason. The values that CAM embodies and the gaps in traditional medicine it is able to fill both contribute to its high rates of success in the past decades. However, its growing appeal to both the economic and political forces that drive our country has given CAM the leverage it needs to become an intrinsic part of the medical world.

Blueprint Professional & Personal Growth Part II Essay

This paper is my analytic theorem to my Blueprint of Professional and Personal Growth from the course â€Å"Dynamic Leadership†. It gives a brief breakdown of my path to achieving my MBA. An executive summary is presented to show how the course educated me in a more systematic way and how it helped me identify my qualities as a leader and my values. Furthermore, in detail is three (3) goals I plan to achieve in my personal and professional development. Executive Summary Throughout this course, Dynamic Leadership has educated me and enlightened me in three aspects – being a leader, a follower and recognizing your personal values. Both leader and follower have a similar notion but with different service to offer – one portrays his dream and plans his mission and the other help to achieve this goal. Each of them have values, principles and ethics they live by whether in their work paradigm or at home. As this course engulfed me with so many different stages, I was able to identify different qualities of leaders and followers, what are their competencies, their different leadership styles and other leadership theories, how followers contribute to achieving the set goals, their weakness and strengths, their passion and purpose, the right timing to a right decision making, how values, principles, ethics and goals intertwine with ones personal and professional lives – individually and eventually to where it clarified profoundly, my Blueprint for Professional & Personal Growth. In general to be precis, Dynamic leadership shown me how to distinguish my leadership style(coercive, authoritative, affiliative, democratic, pacesetting and coaching styles) and projected theories to help me improve my direction as a leader in my organization. I was able to extricate my weaknesses and transform them into strengths. Not only I was able to listen more to my followers – opinions and advices, I was also guiding and sharing my experiences with them, involving them into my goals and boost their motivation. I was authoritative and afraid as I couldn’t trust my staff to delegate and take initiative. But this course has given me insight to better understand how effeicient and effective a leader should be and given the ability to self-manage. I learnt that to be adaptable in leading todays world of business requires strategic sense of personality infliction – meaning flexibility in switching leadership styles with your staff in order to maintain balance and result into productive work and innovation. Likewise, I was able to understand the different competency in followership and how to guide my followers inorder to be effective in their job. Through the interesting stories of successful leaders, my passion did find its purpose by instilling creative ideas, how to lead a diversity of different nationals, globalization, the power of technology merged with business (e-business), adapt to change and have a sight for long term goals. I realized how confusing my goals were, until I took the Personal Value Survey, it enlightened me in details and more clarification how to set my goals smartly, calculating time, recognizing my milestones and how to achieve them. Fascinated by the discussions of different points of views from my peers, made me relish the successful results I gained. Not forgetting few resonating statement, an interview with Kimberly Carter, â€Å"How would I know wether I could be successful at my venture if I didn’t try†¦. A sense of responsibility to encourage others by helping them recognize that they cannot grow unless they realize they don’t fit in any predefined box†¦Ã¢â‚¬ . Her story made me put out my capabilities without fear, voicing out what I believe is right or wrong, allowing me to take risks and be prepared for any challenges and moreover to recognize the efforts of those contributing to achieve the goals by understanding them and allowing for innovation by giving them the initiative. Furthermore, Deb Henretta’s interview also displayed so many reflections in the way she runs her business as I have a little similarity managing and leading mine. Some important factors that she tackled in correspondence to other articles that I have read in the book of â€Å"Passion and Purpose† which have connections in how I run and manage my organiztaion. Such as the importance of your personnel satisfaction that will result into better use and expansion of their abilities in which it is also stated in an article by Dominic Barton (Coleman et. al, 2012g), the importance of working with the team of diverse individuality â€Å"Embracing the Global Generation† (Coleman et. al, 2012) and also recognizing the distinctiveness of every staff regardless of their gender, sex or race â€Å"Nonconforming Culture† by Kimberly Carter(Carter,2012). In conclusion, by recognizing my values, principles and goals, I was able to have a picture of how long I can achieve my set objectives and more precisely how I go about in attaining it. With my MBA, I believe not only I can change certain things but also develop it into a higher success for a longer term effects. The shared practices within the forum, helped me to be more analytical and logic. Reading from my peers their diverse experience and goals, not only powered me to achieve more, open other types of companies, listen more, better creative ideas, but most importantly they give me the â€Å"determination† in achieving them without fear and be prepared to face predicted chalalnges. Below is three (3) goals I am driven to achieve within the time frame of 5 years and even more, given that one of my goals is to instill for a longer term. Blueprint for Professional & Personal Growth Part II Action Plans During the shared practices and articles read during week 6 & 7, I was able grasp the significance in the ability to draw out the values, principles and goals wether you are a leader, a follower or an individual. I was able to draw out many short and long term goals and have them prioritized. From the action plan that I have set, I am actually thinking of acquiring another MBA in Marketing. My mother said to me once that she has always seen the lady of substance in me. Through this clarification of my personal values I plan to be more than what she portrays me to be and someday be a renowned strong wealthy business woman – like those popular strong business men in Forbes magazine. My definition of wealthy is not by any fical monetary terms but by the power of accruing knowledge and wisdom.