Microsoft’s Lost Decade Essay Example for Free

Microsoft’s Lost Decade Essay Introduction Microsoft’s story serves as a prime example of the pitfalls of success. In this case we can analyze, critique, and make recommendations to avoid a similar disaster in the future. While they were really the sole company to open the window into computer technology for the everyday user, but over the last decade appears to have been a victim of its own success. Once so dominant in the industry which is basically created on its own, today cannot be described as â€Å"cutting edge†. The name no longer resonates with younger generations. Evidence of this struggling success can be seen in its stock prices which have completely plateaued and even began to drop recently. What happened? Why are they no longer creating wonderful technological advances for its consumers? In order to compete in the technology industry, a company needs to continuously be innovation for its customers; Microsoft was not doing that. Despite facing a challenge in IBM in the beginning when Microsoft first entered the industry, who was also getting overly confident and comfortable with its position in the industry. It actually appears as though Microsoft has reenacted the problems of their former nemesis. Clearly not focused on development or bringing out a new product, and their new philosophy as expressed by the most recent CEO Steve Balmer about a decade ago was we won’t be first to cool but we will be first to profit. In other words, they don’t care about coming out with some cool new technology, they will wait for somebody else to do that, and then buy their way into that market. Obviously the major problem with that is if somebody else is coming into that product first, that company will most likely lock up the market. It is possible that Microsoft has its hands in too many things. There is no focus. Microsoft doesn’t know what kind of company it wants to be. This is evident by the competition microsft is facing. One division is competing with SONY, while another group is battling apple, while even other teams are competing with Google for example. It’s possibl e that what the company really needs is a fresh start; New atmosphere, new leadership, new goals. Microsoft has great products in Xbox and connect, but inside the massive† machine† that it has become they are just small underdeveloped projects. So again, it is obvious that there are issues to be looked at here, but somebody in charge missed the signals and let this happen. The most telling story from the case is that Microsoft in fact had ideas about the first e-reader, the very technology that is today very popular in the Kindle and iPad, as early as the late 1990s. Unfortunately for the company, the story tells of a meeting in which Bill Gates gave this new technology the â€Å"thumbs down† because the screen didn’t look like windows. Do the customers care about that? No. So that was a huge missed opportunity. The leadership was blind to that element, which dictates that for the customers’ needs to be addressed first and foremost. As a technology company the goal should be to â€Å"create† what is needed. Microsoft started doing things th e other way around. Windows started getting so complicated because they overloaded the engineering aspect to create things that will look good, not perform well. What it has come to at this point it seem is there is no way for Microsoft to compete at this stage. Everything within the company, including the employees appear to be almost â€Å"weighed down† by what can almost be describes as a massive bureaucracy with far too many meetings and memos. Microsoft’s â€Å"law of large numbers† is failing. In order to fix the causes of their problems, we must follow the symptoms back to the root causes and make changes there. On the surface, it appears their issues are due to bad management style, poor organizational structure and a generally counter-productive culture that strained relationships between the â€Å"old guard† and the â€Å"new blood† of the company. To get a better look at the cause of these symptoms, I will follow the eight operations management principals. Part 1: Critique Unity of Purpose Unity of purpose within an organization is definitely not something that a manager can ignore when running a business with goals. It is imperative to remember that to function as a goal oriented team, all parts of the various positions must be working together as one. This is where I will begin our observation of the Microsoft empire and the decade of struggle that diverted it from the success that it once enjoyed. When looking at how Microsoft was handled by Bill Gates, there are undoubtedly some moments that suggest that the unity of purpose was not clearly defined and never adequately addressed to the degree that it needed. We can start at the root of the problem to learn the origins of what Microsoft ultimately faced: namely discord and disharmony in the work place. Looking at the early success of the business, we notice that Microsoft created an innovative and personalized approach to the computer that made it significantly more user-friendly. The initial public reactions were almost unanimously positive due to the fact that the product was revolutionary and had changed the personal technology landscape for the better. Interestingly, Microsoft began this venture in the shadow of IBM, who was also getting overly confident and comfortable with its position in the industry at the time. It actually appears as though Microsoft has reenacted the problems of their former nemesis over the past decade. As time progressed for Microsoft, however, there came to be a noticeable drop off in success of the company. Steve Jobs and his exciting, strong and, most importantly, new Apple brand seemingly booted Microsoft to the curb, out of the public’s eye. It is easy to assume that Microsoft was simply outmanned by Apple, that the latter company came into the picture and took the market share away from Gates and his supposed dynasty. This, however, does not describe the true cause of the downfall suffered by Microsoft. The real cause that sent this company on the track to irrelevance was due in large part to the lack of unity in the business purpose. Microsoft was clearly not focused on development or bringing out a new product, and their new philosophy, as expressed by the most recent CEO Steve Balmer about a decade ago, was â€Å"we won’t be first to cool but we will be first to profit†. In other words, they don’t care about coming out with some cool new technology, they will wait for somebody else to do that, and then buy their way into that market. Obviously the first problem with that is if somebody else is coming into that product first, those companies will most likely lock up the market. Additionally this completely throws off the company’s purpose of unity! What is a technology company if it isn’t researching, developing, and creating for its customers a new technology? The answer is very simple: Microsoft was not united around a general value or principal. As I mentioned earlier, it is possible that Microsoft has its hands in too many things. There is no focus. Microsoft doesn’t know what kind of company it wants to be. This is evident by the competition microsoft is facing. One division is competing with SONY, while another group is battling apple, while even other teams are competing with Google for example. It’s possible that what the company really needs is a fresh start; New atmosphere, new leadership, new goals. Microsoft has great products in Xbox and connect, but inside the massive† machine† that it has become they are just small underdeveloped projects. Once upon a time, Bill gates had a vision. Gates wrote an operating program using the computer language called BASIC which proved to be a wonderful innovation. Driven by his new product, and with that his new purpose, his company took off and left everybody else in the dust. Gates was relentless and demanded the same intense commitment from everyone he hired. Back then they were united each member of the group was invest for the right rea son, which was creating a new product that people wanted before anybody else created it. Neither Gates nor Allen had management skills and business savvy that were needed to help the booming company in its infant days. Once the company started doubling and tripling in size year after year, the company could not keep focus on one particular goal or direction. Unity happens when leaders are committed to and engaged in the process of building a united, winning team. It requires focus, time, and energy. Unfortunately as we’ll discuss a little later on, focus may have been another contributing factor that hindered Microsoft from being the company Gates idealized in his head. Unity occurs when team members care more about the vision, purpose and health of the organization than they do their own personal agenda. Changing the mindset is essential. Unity happens when each person in the company can clearly see how their personal vision and effort contributes to the overall vision and success of the team. This involves meaningful conversations between the levels of management as well as between engineers and sales people. Unity of Purpose results when you weed out the negativity that sabotages far too many organizations. All of these things were issues at Microsoft that hindered it from having one united goal as a company. Having the right people in charge of making decisions can make a world of difference when trying to unite the group behind a cause, which will lead me to the next principle of Operations Management, Human Resources. Invest in Human Resources Microsoft needed to invest in human resources to implement and maintain plans and policies. Strategically placed investments in human resources will develop a more skilled, innovative, productive and loyal workforce thus providing an organization with a competitive advantage over a less progressive competitor. Investment in human capital offers both short and long term gains that help produce not only skilled, productive employees, but those that are both loyal and ethical. Microsoft’s goal should have been to increase the ownership of employees work by providing the right incentives. Already we see evidence that the company will fall prey to the same arrogance that dethroned IBM. There were signs but Microsoft didn’t see them until it was too late. When it comes to your employees, long-term thinking guides an organization. That’s where Microsoft missed the mark by a long shot. Microsoft was focused on too many short term goals. Employees at Microsoft had an obsession with revenue and growth, and it’s no surprise why! Almost every employee received a stake in the company through stock options. When the share price went up, everyone got richer. When it went down, everyone suffered. Everyone ran full speed in hopes of pushing up the stock price a little bit more. Internal competition became a huge issue with Microsoft’s employees as well. The perception of stability within the workforce is especially beneficial during periods of economic decline and or organizational restructuring. The perceptions of stability as offered by organizational culture will often help retain employees during recessionary periods and motivate everyone during stable times as well. This was potentially the biggest issue in house for Microsoft. The days of shoulder to should teams innovating and thriving within the company were gone. A â€Å"financial fissure† penetrated the already strained relationships between th e â€Å"old guard† and the â€Å"new blood†. People were becoming destructively competitive. Its was a sink or swim environment and drowning someone else in order to survive was the name of the game at Microsoft. Something had to be done. Companies can obtain a competitive advantage if they utilize strategic human resources investment practices. If the operation is a primary manufacturing facility investments such as group bonus pay-outs based on overall group performance or attendance for example, could provide an initial increase in output. Furthermore, empowerment of the team by allowing aspects of total quality management to take place will help build confidence and a feeling of responsibility within the group. If the operation is research and development oriented then the culture should be based on rewards focused on those who develop and produce. In either case whether the culture is based on group or individual performance, the overall goals must be focused on the retention, growth of, and maximum utilization of talent. Microsolf is a company with all departments and people with both typed of jobs. The organizations that are best able to manipulate the corporate culture into one of maximum benefit will become significantly more competitive than those who do not, and Microsoft did not. At Microsoft it got so bad that one employee was quoted saying â€Å"We couldn’t be focused anymore on developing technology that was effective for consumers†. It had become all about, â€Å"how am I going to make money†. HR should have used training and development to invest in their employees. Make them feel valued, offer appropriate promotions as incentives for great work and loyalty, and place a greater emphasis on teamwork. The cut-throat atmosphere does not generate positive results, and Microsoft’s organizational structure was such that executives and engineers were from a different generation with cutthroat mentalities. This only results in self immolating chaos. The real villain here was the wrongly implemented Stack ranking system. Managers had a rest and vest mentality which bread ill feelings and jealousy all around. These factors were naturally at variance with team work and innovation. A better reward systems should focus on facilitating cooperation, enhancing long term thinking, tolerating mistakes because they are learning tools, and not letting egos get involved. Whatever Microsoft determines it’s goals and purpose is going to be, it is important for the companies directors to remember that investing in the appropriate human resources is much more than making sure the new employees don’t impact your current paychecks and health insurance. It is the definition of the company, its culture, and its employees performance. With the right culture instilled in the company, employees might have a chance to work on focus for an-unmotivated Microsoft. Focus Microsoft was lacking, and desperately needed focus. Sustainable growth is important. Such a pattern emerges in organizations that are superior in executing their business plan and can maintain a compounding positive trajectory in their revenue development. Organizations that are so oriented build success patterns that breed a culture of confidence and a competitive advantage. This is how growth becomes sustainable. Such a pattern is of primary importance to any focus-oriented company. Sustained growth in a business comes about primarily because key employees are focused on performance factors they can impact and they feel motivated to do so. That focus leads to execution. When sustained, that pattern brings about the results and success the business plan calls for. This being said, Microsoft was committing all the wrong crimes against successful business focus. Vague accountability on the part of higher management made it impossible for the rest of the employees to envision goals a nd work with a purpose. A major contributor to this at Microsoft was the fact that they held too many meetings. Meetings in turn slows new product development and staggers innovation. Just as with e-books, opportunities for major product developments slipped away from Microsoft. Windows CE, an operating system distinct from Windows that was originally used for pocket devices like personal digital assistants, would ultimately be the foundation of the mobile operating system that would power Microsoft’s first smartphones. But despite the fact that Microsoft had the jump on its competitors with Windows CE, it still lost the race for the wildly successful smartphones. In addition to too many meetings, Microsoft had too many managers. Current and former executives said, each year the intensity and destructiveness of the game playing grew worse as employees struggled to beat out their co-workers for promotions, bonuses, or just survival. Microsoft’s managers pumped up the volume on the viciousness around each other and to their subordinates. What resulted, when combined with the bitterness about financial disparities among employees that already existed, the slow pace of development, and the power of the Windows and Office divisions to kill innovation. All in all, it was a toxic stew of internal antagonism and warfare fueled by the generation gap between the old, established managers and the young, aspiring engineers. That â€Å"warfare atmosphere† was only the beginning of the distraction. At Microsoft every employee had a smiley face icon to monitor stock prices at every moment of the day. When shares increased, the face smiled, but when they fell it frowned. This placed way too much focus on shareholders, profits, and employees job security. There was simply not enough emphasis on the customer, and nothing was focused on the company’s future. Futher issues at Microsoft included obsession to capitalize on every opportunity to gather new revenue, teams of people fighting shoulder-to-shoulder had been replaced with backstabbing and selfish goals. Microsoft even went as far to save money, the company no longer helped with towels in showers at work. Why is that a focus at all!? That’s such a pathetic problem to have at an industry-leading technology company. To achieve quality, you have to define it. Focus is a definition and you have to make sure that definition is disseminated throughout the rank and file. Its the job of any company to be clear about the nonnegotiable core values. A lack of focus creates estuaries and cloudy waters that are confusing to navigate and surely hinder innovation. Visibility Management The lack of focus we attribute to the poor leadership transitions us to our next issue with Microsoft, that there is not a fair, balanced model in the company with solid visibility management. Natural self-promoters, like many of the managers and executives at Microsoft, instinctively exploit opportunities to make themselves visible. In today’s competitive corporate environment, being good at what you do isn’t enough to earn your keep or what you’re worth. You have to practice â€Å"visibility management,† letting people know who you are and what you do well. Managing visibility is an integral component of modern success and career management. Microsoft had extremely poor visibility management for a number of key reasons. For starters Microsoft did not recognize or enforce fairness throughout its organizational structure of employees. The organizational structure followed a stack ranking system, like a forced bell curve model, that puts individual goals at complete variance with teamwork. The managers who were supposed to be making decisions and conveying them to their sales and engineer teams were in constant meetings instead of making information available regarding any management decisions. Microsoft was lacking â€Å"new blood† in its management. The divisions between the old timers and the young innovators had grown wildly out of control. Corporate culture is built from the combined experiences of the members of the organization working in harmony with clear visibility. This effects the results of the organization’s efforts, and helps the psychological tone set by top management and every level of management beneath it. All of these factors are expressed in, and some are caused by, visibility management, and poor management behavior will always affect the culture negatively. Organizational culture is built on the behaviors of the members of the culture, and poor management visibility and behavior at any level naturally affects the levels subordinate to it. An abusive or clueless top or middle manager can create a culture of negativism and poor performance that extends beneath them all the way to the bottom of the organizational pyramid, and even to supplier organizations. Anyone who has worked in more than a couple of bureaucracies has most likely experienced or witnessed this syndrome. At Microsoft one employee was quoted saying â€Å"If you just add up the time people spent sending angry e-mails about the towels disappearing †¦ I expect they lost a lot more money than the cost savings from the towels.† Even once the towels returned, the bitterness about cost-cutting didn’t end. What was management’s plan? Nobody seemed to know; there was no communication or visibility within the company. Even after that Microsoft abandoned its gold-plated health-insurance plan. That was the enticement that had brought some employees there in the first place. Whiteboards grew scarcer. It even became harder to find office supplies. Many of the problems from bureaucracy came down to a simple reality: The young hotshots from the 1980s, techies who had joined the company in their 20s and 30s, had become middle-aged managers in their 40s and 50s. And, some younger engineers said a good number of the bosses just didn’t understand the burgeoning class of computer users who had been children when Microsoft opened its doors. When younger employees tried to point out emerging trends among their friends, supervisors sometimes just waved them away. None of management’s procedures or systems seemed to make any sense to the rest of the subordinate company. Corporate policy at Microsoft gave some select few millions, while others got bare minimum pay. Too many employees were seeking management spots for the wrong reasons. Management should have been more humble, transparent, and outward gazing. Visibility management works with facts, not ego and corporate politics. Fix Causes Corporate politics lead to nothing else if not fear and prejudice within the organization. Current and former executives said that each year the intensity and destructiveness of the game playing grew worse as employees struggled to beat out their co-workers for promotions, bonuses, or just survival. Microsoft had, in an effort to motivate by competition, created a back-stabbing environment of brutal proportions in the corporate world. Management is supposed to be courageous and inspiring, â€Å"not pumped up the volume on the viciousness† as was the case at Microsoft. It is usually the leader with the most power who provokes the most fear. With leaders worried about outbursts and other nasty behavior from those with even more power than they have, imagine the toll the fear factor must take on the people who wield substantially less authority. At a place like Microsoft, those people make up the vast majority. Although Ballamer would espouse that they challenge their people, man y employees would argue those challenges feel threatening. The truth is most likely employees blossom when challenged and wither when threatened. There is no data showing that anxious, fearful employees are more creative and productive, but there is data proving that employees in a threatening environment are less engaged, less loyal and for the most part miserable. Civility is not a term we typically associate with corporate life or use to describe the everyday world in workplaces around the globe. But consider the potential impact on corporate culture, and society as a whole, if civility were not just expected, but championed by senior leadership. Microsoft had a forced bell curve of talent that doesn’t actually represent the production and innovation capabilities of the company. This creates achingly slow progress and in an atmosphere that has every unit declare a certain percentage of employees as top performers, then good performers, then average, then below average, then poor, employees were focusing on competing with each other rather than competing with other companies. Management needs to listen to the ideas of the young generation and implement a better system. An example of when this would have done Microsoft well was in 1997, when AOL introduced its instant-messenger program, called AIM, a precursor to the texting functions on cell phones. Two years later, Microsoft followed with a similar program, called MSN Messenger. In 2003, a young developer noticed that friends in college signed up for AIM exclusively and left it running most of the time. The developer concluded that no young person would switch from AIM to MSN Messenger, which did not have the short-message feature. He spoke about the problem to his boss, a middle-aged man. The supervisor dismissed the developer’s concerns as silly. Why would young people care about putting up a few words? Anyone who wanted to tell friends what they were doing could write it on their profile page, he said. Meaning users would have to open the profile pages, one friend at a time, and search for a status message, if it was there at all. Unfortunately because his manager didn’t know or didn’t believe how young people were using messenger programs, nothing was done. Management was instilling fear instead of developing for the long term and listing to employees about what customers really want. Know Your Customers As we have discussed, the culture at Microsoft was complacent. Managers were closed to criticism, arrogant about their roles of leadership, and obsessed with stock prices and short term goals. The very purpose for Microsoft’s existence was to provide new and wonderful technology to people; those people being the customers. Those people dictate the needs, not managers, and Microsoft lost touch with who they were serving. It’s something critical to ANY and EVERY business: knowing your customers and the products they want. You can learn a great deal about your customers by talking to them. Asking them why theyre buying or not buying, what they may want to buy in the future and asking what other needs they have can give a valuable picture of whats important to them. Despite a multi-year head start, the big profits on innovative new technologies would eventually go to Amazon and Apple. Why? Because they gave the customers the next new thing in technology. For example, Bill G ates gave the E-reader the thumbs down because he was focused on what the product did and looked like, not how his consumers would love it. Apparently â€Å"he didn’t like the interface because it didn’t look like windows.† The point on this invention was to have the book, alone, appear on the full screen. Putting it into an electronic book, Gates suggested, would do nothing but undermine the customers experience. Unfortunately what gates didn’t understand is that it’s not undermining them if that’s what they want! The death of the e-book effort was not simply the consequence of a desire for immediate profits, but also all kinds of personal prejudices at work. Management missed the beat repeatedly while â€Å"meeting† to pursue the next thing it would release. Microsoft was only hurting itself. As discussed earlier they were far too obsessed with revenues and stock prices of old products. Steve Stone, a founder of the technology group, said about Microsoft’s attention to customer wants: â€Å"We couldn’t be focused anymore on developing technology that was effective for consumers. Instead, all of a sudden we had to look at this and say, ‘How are we going to use this to make money?’ And it was impossible.† Indeed, executives said, Microsoft failed repeatedly to jump on emerging technologies because of the company’s fealty to Windows and Office. â€Å"Windows was the god—everything had to work with Windows,† said Stone. â€Å"Ideas about mobile computing with a user experience that was cleaner than with a P.C. were deemed unimportant by a few powerful people in that division, and they managed to kill the effort.† Indeed, executives said, Microsoft failed repeatedly to jump on emerging technologies because of the company’s fealty to Windows and Office. There was a feeling that â€Å"Windows was the god—everything had to work with Windows,† despite what the customer wanted. While Apple continues to gain market share in many products, Microsoft has lost share in Web browsers, high-end laptops and smartphones. Despite billions in investment, its Xbox line is still at best an equal contender in the game console business. It first ignored and then stumbled in personal music players until that business was locked up by Apple. Another problem with Microsoft delivering to the customer’s needs is whenever Microsoft spies yet another potential market which it thinks is ripe for taking over it generally announces its intention to move aggressively into that market. Microsoft frequently announces new products for these markets that they will ship soon regardless of whether or not they have any genuine interest in actually shipping said products. What this frequently leads to is that people stop buying software in this market because they want to wait for the Microsoft version. Unfortunately if Microsoft sees the market drying up they usually just walk away and never deliver their promised products. The end result is that the small software companies in these markets take a very big hit and frequently go under while consumers end up without their promised product. In the past, Microsoft has fueled amazing growth by leveraging its way into new markets in order to acquire new customers. The problem that Microsoft has been facing recently is that they tried to dominate so many different markets that there are not enough markets left that can be captured for the purpose of sustaining the growth that their shareholders require. Microsoft has turned its sights back on its existing customers. Microsoft is finding creative ways to draw more money out of its existing customers, often times with hostile results. One example of Microsofts hostility to its existing customers came in September, 2000. Microsoft demanded that the Virginia Beach government account for all copies of Microsoft software that were in use within the government and provide proof of purchase for each product. The reason? Nick Psyhogeos, a Washington, D.C.-based attorney for Microsoft, said the firm has found that government agencies sometimes inadvertently acquire counterfeit software. There was no mention of a reason why this particular city government was singled out they were not investigated because of something which they did to arouse suspicion, but simply because they were a large organization that Microsoft hoped they could frighten more money out of. The city was presumed guilty until proven innocent and this cost the tax payers a great deal of money as the city reassigned 25 percent of its technical work force to work specifically on the task of generating the information demanded by Microsoft. Microsoft is hunting down it’s customers, not providing for them. Know Your Competition In the competitive corporate world it is imperative that a company knows it’s competition so that you don’t get blindsided. It is crucial to know who they are and what their strengths/weaknesses are. It would also be smart to know what their primary products are that compete with yours and how they access talent that you might want as well. Recently Microsoft’s strategy has just been killing off competitors by either buying them or their technologies. Once again, a good example of this is shown with Microsofts jump into the web browser market. Microsoft was late to catch on to the fact that the web was going to revolutionize the way people used computers and once they finally woke up they were dangerously close to having their Windows monopoly destroyed by the greatly reduced importance of operating systems that a web based paradigm would produce. They needed to do something fast. They allegedly tried to carve up the market with Netscape by getting Netscape to ag ree to stop making Windows web browsers while Microsoft would only make Windows web browsers. Fortunately for consumers, Netscape did not agree to the deal and the web was saved from becoming a Microsoft only technology as surely would have happened. This made it even more urgent for Microsoft to lock up this new market right away while it was still time. Lacking any decent technology of their own, Microsoft licensed the Mosaic web browser from Spyglass which they turned into Internet Explorer. The weapon that Microsoft fashioned in their attempt to defeat Netscape wasnt even their own, but technology they bought from someone else. This was not a one time thing either. What this meant for Microsoft was that they got to keep their monopoly for a little bit longer, but it had much more dire consequences for consumers. It meant that consumers were now stuck with a very buggy browser and file system viewer because Internet Explorer wasn’t prepared to compete with competition. Who are Microsoft’s main competitors right now? According to CEO Steve Ballmer Google, Apple, and Oracle and the front runners. Google is a serious threat because not only does it have its hand in multiple markets, it has the ability to jump in and quickly grab significant market share. Gmail went public only about three years ago, but already it’s the third-largest webmail service behind Hotmail and Yahoo. Google Apps is up-and-coming, having won a few key contracts in the enterprise market. Microsoft’s release of Office Web Apps shows the company is worried about Google, which is touting apps as an easy-to-use-from-anywhere service with an easier and less expensive business model. Android has accomplished a heckuva feat, jumping from nearly no market share a year ago to being the platform of choice for about 10 percent of new smart phones sold. Chrome has been consistently eating away at Internet Explorer since its launch nearly two years ago. And with App Engine, Google has been making a push in the cloud-platform space to which Microsoft, with Windows Azure, just showed up this winter. And then there’s Chrome OS, the browser-based operating system that Google is expected to launch by late autumn. It’s unknown how successful the novel idea will be, especially with the incoming tablet market, but considering Google’s success in other sectors it could very well grab netbooks away from Windows. Apple was nearly dead 10 years ago and has surged back to pass up Microsoft in market capitalization, and Apple did it with consumers. When you’re talking competition between Microsoft and Apple, you’re mainly talking about hand-held devices. Windows is still on more than 90 percent of computers and Safari, Apple’s Web browser, essentially has the same market share as Macintosh computers. Apple is leading the charge for mobile computing. And as Google can attest, there’s plenty of room in the market to capitalize. Microsoft, for its part, has not been able to do that lately. As Apple and Android surge in popularity, Windows Mobile hemorrhages market share. Microsoft must deliver a knock-out hit with Windows Phone 7 this holiday season. Then there’s the iPad. Apple has succeeded where others, namely Microsoft, failed to recognize the need 10 years ago. Apple has opened the door for a potentially huge new market. What really agitates Microsoft is that PCs are no longer the only incarnation of personal computing. In the MicroNokia deal, Microsoft sees an opportunity to be a player in the new personal computing incarnation, a willful answer to its competition. Microsoft tried to ignore tablets and a â€Å"fad† but will soon need to recognize the potential and get on top of that if it wishes to once again dominate the industry. Total Quality Management It is absolutely necessary for Microsoft to base quality decisions on facts, not the ego’s and ideas of executives. The outputs that they wish to hold important must be measurable. Microsoft would also do well to empower its employees on the customer interaction level. These are the employees closest to the customer and will provide the most effective feedback for future innovation. These future innovations must also be of the highest quality as that is one of the key component to total quality control. The reason quality has gained such prominence is that organizations have gained an understanding of the high cost of poor quality. Quality affects all aspects of the organization and has dramatic cost implications. The most obvious consequence occurs when poor quality creates dissatisï ¬ ed customers and eventually leads to loss of business. However, quality has many other costs, which can be divided into two categories. The ï ¬ rst category consists of costs necessary for achieving high quality, which are called quality control costs. These are of two types: prevention costs and appraisal costs. The second category consists of the cost consequences of poor quality, which are called quality failure costs. Companies that consider quality important invest heavily in prevention and appraisal costs in order to prevent internal and external failure costs. The earlier defects are found, the less costly they are to correct. Another massively important factor of Total Quality Control is the quality and happiness of the employees. A good way to ensure that is to be encouraging to your employees and offer praise when appropriate. Thank employees for doing a good job and let them know that you value them. Should something go wrong or someone makes a mistake, don’t â€Å"punish† the person. That was a big fear at Microsoft that went on too long. Punishing people only makes things worse in that the employee may become angry and bitter and may want to sabotage their work to get back at the company, or leave to work for the competition. Too many meetings at Microsoft and the fear of a declining stock price did not create an atmosphere that created â€Å"quality†. Management needed to tolerate mistakes and be more outward gazing for innovations, customer needs, and new business models. Part 2: Recommendations Bad corporate culture happens, but it can be corrected. While it is natural for bad organizational culture to develop, this tendency can be countered and a more positive and productive organizational culture can be produced, though it requires savvy and introspective management. It is within the power of each of us to do the introspective work and be more savvy, as managers or regular employees. In doing so you will improve everyone, and give each individual increased capacity to influence the organizational culture in a more positive direction. The greatest threat to an organization’s success is not always the competition. Often, it is what a company does to itself. Because of fear, companies become plagued with barriers and bureaucracy that limit success, crush employees, and infuse frustration and a sense of futility across the enterprise. It starts with a narrowing of focus, which leads to the first level of bureaucracy: parochialism. Parochialism exists when managers and departments begin to view the world through the filter of their own little silo, and build walls make of rules and policies to protect their turf. This was definitely the case at Microsoft with the Stack ranking system. When looking at how Microsoft was handled by Bill Gates, there are undoubtedly some moments that suggest that the unity of purpose was not clearly defined and never adequately addressed to the degree that it needed. As I mentioned earlier, it is possible that Microsoft has its hands in too many things. There is no focus. Microsoft doesn’t know what kind of company it wants to be. This is evident by the competition Microsoft is facing. Unity happens when leaders are committed to and engaged in the process of building a united, winning team. It requires focus, time, and energy. Unfortunately as we’ll discuss a little later on, focus may have been another contributing factor that hindered Microsoft from being the company Gates idealized in his head. Unity occurs when team members care more about the vision, purpose and health of the organization than they do their own personal agenda. Changing the mindset is essential. Unity happens when each person in the company can clearly see how their personal vision and effort contributes to the overall vision and success of the team. This involves meaningful conversations between the levels of management as well as between engineers and sales people. Unity of Purpose results when you weed out the negativity that sabotages far too many organizations. All of these things were issues at Microsoft that hindered it from having one united goal as a company. Having the right people in charge of making decisions can make a world of difference when trying to unite the group behind a cause, especially a business cause. Microsoft needs to invest in human resources to implement and maintain plans and policies. Strategically placed investments in human resources will develop a more skilled, innovative, productive and loyal workforce thus providing an organization with a competitive advantage over a less progressive competitor. Investmen t in human capital will offer Microsoft both short and long term gains to help produce not only skilled, productive employees, but also loyal and ethical employees for the long-term. Microsoft’s goal must now be to increase the ownership of employees work by providing the right incentives through HR. Especially when it comes to your employees, long-term thinking guides an organization. That’s where Microsoft missed the mark in the past and needs to focus now. Microsoft was focused on too many short term goals in the past. The vicious internal competitions need to be eliminated from Microsoft if they want to create a productive work environment. This was potentially the biggest issue in house for Microsoft. Companies can obtain a competitive advantage if they utilize strategic human resources investment practices. The real villain here was the wrongly implemented stack ranking system. Managers had a rest and vest mentality which bread ill feelings and jealousy all around. These factors were naturally at variance with team work and innovation. I recommend a better reward system that will focus on facilitating cooperation, enhancing long term thinking, tolerating mistakes because they are learning tools, and not let egos get involved. Whatever Microsoft determines it’s goals and purpose is going to be, it is important for the companies directors to remember that investing in the appropriate human resources is much more than making sure the new employees don’t impact your current paychecks and health insurance. Microsoft needs a better focus on what they are about and their position in the technology industry. These will come with a well taken care of their employee base first. I recommend they invest into a few basic human needs to help their organization stay productive, engaged and, happy during times of angst and uncertainty which inevitably come in the corporate world of today. The first focus with is to make a connection with the employees. Talking about emotions in the workplace can cause executives to get uneasy. Have you ever noticed that you never hear managers saying, Please dont get so excited or Please quit being so happy? The reality is that emotions are at the center of everything we do. The leadership challenge is not to avoid them, but instead to ignite the positive ones. The secret of getting people more engaged in their work is for their leaders to become more engaged with them. That means being willing to show up emotionally as well as intellectually. Human connection isnt a nice thing to have; its a must-have. Meaningful connections provide people with the internal fortitude they need to stay productive during tough times. Microsoft needs to be more connected to its people, and they also want them to be connected to one another. The way to do that is by talking, with real spoken words, not e-mail edicts, asking people how theyre doing and actually listening to their answers, and by providing them with opportunities to interact with one another. Corporate parties, public promotions etc will go a long was for the morale at Microsoft. Providing context and meaning to the tasks at hand will do a lot for the employees at Microsoft as well. Everyone wants to know that they make a difference in the world. When you put someones work into a meaningful context, you tap into the deepest yearning of his or her soul. The challenge for Microsoft is that most peoples days are so hectic and their jobs so compartmentalized that they often miss the larger story of how their work touches the work of others in the company, and the customers around the world. Leaders who reframe daily tasks by providing personal context quell the angst of uncertainty by giving their employees something more meaningful to think about. The best thing for Microsoft to do is to offer professional employees an incentive package that includes a bonus based on the firms gross revenue. When you bring in more, everyone gets rewarded. But dont make the mistake of tying bonus comp to practice profitability. Profit sharing seems like a good idea but it often c reates resentment by employees who dont have any control over profits. Every time an executive takes a vacation as a business trip or buys a new computer they dont really need, Microsoft employees will resent it. Bonuses based on revenues create a team environment where everyone gets rewarded for their contributions to growth. This is the ultimate motivator for many professional planner, young and old, regardless of business level. As businesses grow and become more complex, a second level of bureaucracy is reached: territorialism. While parochialism is about protecting a department from outsiders, territorialism is about controlling those inside the silo. The third and final level of bureaucracy is empire building, which is a response to perceived threats to a department’s ability to be self-sufficient. These barriers cost organizations a fortune in inefficiency, turnover, waste, and demoralization, and Microsoft is guilty of these on the highest level! Tearing down these barriers is difficult, but it can be done. I recommend resetting rules and policies, and refocusing on the ultimate mission of the organization. Territorialism can be eliminated by creating true empowerment, along with appropriate levels of accountability. Microsoft must also create a culture of courage, to enable employees to take advantage of these new freedoms and accountabilities. In the past managers definitely took advantage of their powers, and didn’t communicate to their employees appropriately. Leadership must refocus on mission success rather than just checking off their part of the process, manage reference points, and engage employees. I am confident that by doing all of these things, Microsoft can begin to become fearless, and unstoppable. Microsoft messed up internally, but also missed a number of opportunities. While Microsoft dreams of Apple-style successes with consumers, the truth is, with only one exception, consumers dont care about Microsoft in the slightest. Microsoft does, of course, make one successful consumer product, at least from a perception standpoint, and thats the Xbox 360. Today, Microsoft is being chipped away by competitors from all sides, like a mighty shark being taken down by a pack of hungry piranhas. Microsoft is just letting this happen because the company simply moves too slowly, whether its entering new markets, updating existing products, or something internal. I have read a number of recommendations in articles and online about Microsoft, and I happen to agree that Microsoft is so big that the very notion of there being a Microsoft is absurdly simplistic. This is instead a collection of often massive warring fiefdoms that dont just ignore each other but in some notable cases actually actively work against each other. Even more problematic, perhaps, Microsofts businesses are so diverse that many have nothing to do with each other. So my advice is to split up this company into two or three baby Microsofts, perhaps al ong consumer, business, and developer lines. None of these brands should have any influence from Steve Ballmer as well. Replacing Ballmer is no easy task, and while its not the epic problem that the software giant confronted when Bill Gates left, Microsofts need for new leadership will require a team, not an individual. It’s possible Microsoft doesnt need a business guy at the top, and I would recommend it needs another guy who understands technology. That way Microsoft’s managers will stop smothering good ideas. Microsoft needs to say â€Å"Yes† to good ideas more frequently. This can only happen within an organization that actually listens and rewards the forward thinkers, places like Apple and Google, who happen to be doing very well in the market right now. â€Å"Microsoft is now in the ironic position to brand itself as David to Apples Goliath, the counterculture to Apples mainstream†. I want Microsoft to turn the tables on the very upstart company that used to think different,† and I recommend Microsoft turn the page and begin this decade anew, learning from its own mistakes. Bibliography and Reference Links * Greer, Charles S. An Investment Perspective of Human Resources, Strategic Human Resources Management, (2001): 1. * Greer, Charles S. An Investment Perspective of Human Resources, Strategic HumanResources Management, (2001): 5 * http://news.cnet.com/8301-10805_3-57471170-75/microsofts-ballmer-challenges-vanity-fairs-lost-decade-claim/ * http://oneffectivemanagement.wordpress.com/2008/08/19/where-does-bad-corporate-culture-come-from-and-can-it-be-corrected/ * Civility: http://www.huffingtonpost.com/mary-prefontaine/corporate-leaders-must-re_1_b_1437445.html * Not shipping said product: http://www.kmfms.com/whatsbad.html * Competiton: http://blog.seattlepi.com/microsoft/2010/06/03/ballmer-and-microsofts-main-competitors-are/ * David to Apple Goliath: http://www.cnn.com/2012/09/24/tech/innovation/fixing-microsoft/index.html

Ebola Virus: Structure, Pathogenesis and Treatment

Ebola Virus: Structure, Pathogenesis and Treatment Named after the river valley in Zaire, now known as the Democratic Republic of Congo, where it was first recognized, Ebola began its publicity in the spotlight of an epidemic. It is one of two members of RNA viruses called Filoviridae. Filoviridae were first discovered 9 years before the initial outbreak of Ebola, in 1967, in workers who were exposed to blood from African green monkeys imported from Uganda that had the Marburg virus [6]. The family Filoviridae constitutes, together with the families Paramyxoviridae and Rhabdoviridae, the order Mononegavirales. Within the family there is a single genus, filovirus, and a separation into two sero-/genotypes, Marburg and Ebola [6]. Filoviruses are classified as Biological Level 4agents [5] based on their high mortality rate, person-to-person transmission, potential for aerosol infectivity, and absence of vaccines and chemotherapy [6]. There are five identified subtypes of the Ebola virus. Four of the five have caused disease in humans: Ebola-Zaire, Ebola-Sudan, Ebola-Ivory Coast and Ebola-Bundibugyo. The fifth, Ebola-Reston, has caused disease only in primates [2]. In 1976, the first subtype of Ebola was discovered, Ebola-Zaire. A local was admitted to a hospital in Zaire with a fever. The nurse assumed he had malaria and gave him a quinine shot. When the patient went home he died and a traditional African funeral was organized. In preparation, the woman from his family removed the blood from his body with their bare hands; most of the women died shortly after [4]. Meanwhile, the nurses at the hospital reused the needle for the quinine injection without sterilizing it, spreading the virus to everyone who came in contact with it. A doctor was called in to show how to sterilize their needles, purify their water, and give tips on how to bury the bodies that were now piling up. Quarantine followed after an autopsy was performed on a corpse and was held until every person who had contracted the virus had died [4]. Ebola-Zaire spread through the hospitals through reused needles and dead bodies, claiming an average 82.6% fatality rate from 1976 to 2003 [5]. The Zaire strain claims the most outbreaks and highest fatality rate of any strain of Ebola virus, although, it is not the only strain to take lives. As the Ebola-Zaire strain was being discovered the Ebola-Sudan strain also emerged. The first case appeared in a worker exposed at a cotton factory. The second case caused the death of a nightclub owner when he was introduced to an unsterilized needle [4]. Scientists were able to isolate these events, but a reemergence in the same location cased a smaller epidemic to occur just 3 years later in 1979. It rested at an overall 53.76% fatality rate spanning from 1976 to 2003 [5]. Ebola-Reston caused disease in a group of Macaques; some of the people exposed to the virus developed antibodies and none became ill [1]. The Ebola-Ivory Coast strain has only one known case of infection, that of a scientist dissecting a wild chimpanzee in 1994. The scientist fully recovered from the strain. Given the low infection rate, Ebola virus natural habitat s to this day remain unknown [2]. Structure Seen through an electron micrograph, the Ebola virus appears as long rods, 800-1000 nanometers in length. The filamentous structure is often found in a distinguishing U-shape arrangement, but is pleomorphic; meaning it can take on many shapes. Other shapes include branched, circular, or a 6 shape. The outer envelope of the virion is covered in small spikes, made of virally encoded glycoproteins [12]. These spikes are 7nm long, spaced 10nm apart, and allow the virus to attach itself to host cells. Ebola virus is an enveloped negative-sense RNA virus which is associated with zoonotic infections in humans [8]. Its genome consists of a single-stranded molecule of non-segmented, negative-sense RNA. The RNA is noninfectious, not polyadenylated, and complementary to polyadenylated viral subgenomic RNA species [6]. Gene signals are distinct by transcriptional start signals at their 3à ¢Ã¢â€š ¬Ã‚ ² (3à ¢Ã¢â€š ¬Ã‚ ²-CUNCNUNUAAUU-5à ¢Ã¢â€š ¬Ã‚ ²) and the termination signals at their 5à ¢Ã¢â€š ¬Ã‚ ² (3à ¢Ã¢â€š ¬Ã‚ ²-UAAUUCUUUUU-5à ¢Ã¢â€š ¬Ã‚ ²) end [6]. The RNA is enclosed by a capsid known as the nucleocapsid. The nucleocapsid is formed by viral proteins, primarily VP24 and VP35. The space between the outer viral envelope and the nucleocapsid is known as the matrix space. Several viral proteins are located in the matrix space. Although little is known about the molecular mechanics of filoviruses, scientists focus on the mechanics of viral proteins as they are thought to function p rimarily as immune antagonists. Viral protein 24 (VP24), functions primarily to inhibit a signaling pathway known as JAK-STAT. The JAK-STAT pathway is a secondary method of transmitting information from chemical signals outside the cell, through the cellular membrane and into the cell. By inhibiting this signaling pathway, several cellular activities are disrupted including transcription. Studies have identified several regions within VP24 that are important for nucleocapsid formation [8]. As part of the bodys first line of defense against viral infections, interferons, which are released by lymphocytes during a non-specific immune response, disrupt a viruss ability to replicate. Viral protein 35 (VP35) is thought to play a central role in the synthesis of viral RNA, serving as an interferon antagonist [12]. The degree of interferon antagonist production is said to determine the pathogenicity of the virus and may account for the varying degrees of virulence among different strains of the Ebola virus [12]. Additionally, VP35 is critical for viral replication, suppression of RNA silencing, and nucleocapsid formation [8]. The viral protein 30 (VP30) is known to act as a transcription activator. Studies have suggested that VP30 halts the host cell transcription complex at its start site allowing the Ebola virus transcription to begin [13]. A nonstructural glycoprotein has only been discovered with viruses of the Ebola type. This protein, designated sGP, shares ~ 300 N-terminal amino acids with glycoprotein, but has a different C terminus (~70 amino acids) containing many charged residues as well as conserved cysteines [6]. Ebola virus glycoproteins, specifically the envelope-glycoprotein and the secretory-glycoprotein, play critical roles in the pathogenesis of the virus. The envelope-glycoprotein is responsible for receptor binding and fusion of the virus with host cells. Because Ebola is an enveloped virus, cleavage activation of membrane glycoproteins is essential for fusion between the viral envelope and the host cell membrane. This fusion allows the virus entry into host cells. The secretory-glycoprotein is secreted from infected cells [12]. Glycoproteins can also produce cytotoxicity by inducing cell rounding and detachment of cell surface integrins [9]. Specific cells targeted by Ebola virus differ depending on the strain of virus. Studies have shown glycoproteins of Zaire Ebola virus induced pathogenic changes in endothelial cells in both human and primate cells, where Reston Ebola virus glycoproteins induced similar effects in the primate cells but not in the human cells [12]. Endothelial cell dysfunction is thought to explain hemorrhagic characteristic of filovirus infections [12]. Often the proteins target the endothelial cells lining the blood vessel wall, which eventually leads to internal bleeding. Replication Replication of RNA viruses differ from that of DNA viruses in several ways. One important difference is that replication occurs in the cytoplasm of the host cell, and not in the nucleus. The virion then releases an enzyme into the cytoplasm, known as RNA-dependent RNA transcriptase, to begin transcription of positive-RNA. This positive strand of RNA then acts as the template for viral protein translation [7]. The virus proceeds to integrate itself into the DNA of the host cell allowing the viral RNA to become part of the host cells genetic material. The virus (at this point called a prophage) now can replicate every time the host cell replicates. Ebola virus replicates via both lysogenic and lytic phases. The lysogenic cycle is a process in which the virus enters the host cell but doesnt immediately destroy it. The virus enters through endocytosis in which the entire encapsidated virion is engulfed and released into the cytoplasm of the cell. After some time, the prophage is excised from the chromosome and the cell reenters the lytic phase, where the host cell lyses and newly assembled virions are released. At this point, symptoms of viral infection become evident [13]. Pathogenesis and Manifestation The Ebola causes the disease Ebola hemorrhagic fever. Within the first week of contracting the virus, mild headaches occur. The headaches intensify and flu-like symptoms, backache and chills are present. Fever, diarrhea, fatigue, and nausea then set in. Vomiting may occur within the first two weeks. By the end of two weeks, coughing and vomiting of blood occurs. Late symptoms arise. Blood purges from the mouth and rectum; eyes, ears, and nose follow. The eyes begin to inflame and the genitals swell. Rash overtakes the body, often containing blood. Seizures, coma, and delirium ensue. Death commonly comes from shock rather than blood loss [10]. Hemorrhaging is generally found macroscopically in most organ systems in human death scenarios. Focal necrosis in the liver, lymphatic organs, kidneys, testes, and ovaries are observed under a microscope. Incubation of the virus ranges from 2 to 21 days depending on the strain; the subtype Zaire is 4 to 16 days [6]. Treatment There is no known cure or standard treatment for Ebola hemorrhagic fever. Antivirals generally given to fight similar viral infections do not work well against the Ebola virus. Those who are infected can only receive supportive treatment for their symptoms until their body is able to fight off the virus. Most importantly, the patients blood volume and electrolytes are maintained to prevent the patient from going into shock. Fever, blood pressure, and oxygen levels are also monitored. The best option is to prevent infection through early diagnosis and isolation when outbreaks occur. Although cases are rare, vaccines can be a vital tool. Filoviruses can be harvested from wild monkeys in possibly infected areas to process for future vaccines. Epidemiology and Avoidance Since the natural reservoirs are unknown, prevention is merely suggestion. Wearing protective equipment such as gloves, masks, goggles, gowns, and practicing sterilization is recommended when in contact with the virus. When traveling to epidemic areas, its important to wear such equipment, and learn of possible symptoms as a preventive measure. The goal is to avoid contact with blood or secretions of any patient, as person-to-person contact is the main route of infection in human outbreaks. Premise concludes an infected animal is the primary determinant for contracting Ebola virus. Transmission can occur from direct contact with blood and/or secretions prevalent when caring for the infected [3]. History of the virus shows that nosocomial transmission provides high outbreak potential when sterilization is not practiced consistently. In lab setting, research suggests Ebola has the ability of spreading through airborne particles, but this type has not been documented among humans in a real-world setting [2]. In the case of a diagnosis, several infectious diseases need to be considered before making a proper diagnosis of filovirus. Detection can be done in the lab by measuring the host-specific immunological response to the infection, or by detecting viral antigens and genomic RNA in the infected host [6]. Conclusion The Ebola virus poses significant threat to humans and animals. Although the incidence of outbreak is low, the infection is very serious and often fatal. So far, Ebola has been confined and isolated but there is always a risk of it spreading rapidly to the rest of the world. Without effective treatment and prevention the threat is enhanced. More extensive knowledge is needed to understand how the virus spreads and its development, specifically Ebolas natural reservoir. Therefore, while traveling the world, people should be aware of the threats from the Ebola virus in order to avoid infection, and hopefully scientists will do their best to develop a treatment and vaccination. McDonalds in Beijing: Localization of Americana McDonalds in Beijing: Localization of Americana Summary: According to me the Author talks about the recent changes in the Chinese society and the new tendency to adopt the foreign culture influences and transform them into local institution which was restricted by the Chinese political system during the Maoist era. The important points made in the article are as follows: Acceptance of foreign culture influences. Beijing customers are the active partners in the process of localisation. Representation of McDonalds as Americana and the promise of modernisation. People patronize McDonalds to experience a moment of equality. Making experience at McDonalds restaurants exotic, American, and to a certain extent, modern. Genuineness of McDonalds food that is being identical to its American counterpart. Attraction to McDonalds by its American style rather then its food. McDonalds interpretation of its food as a foreign form of xianbing. The culture of fast food attracting the Beijing consumers. A way to take part in transnational cultural system. At McDonalds, eating environment is considered as romantic and comfortable. McDonalds experience is treated as a chance to explore American culture and give their young one a special treat. McDonalds representation as a symbol of American Culture has led them to accept new patterns of behaviour. Willingness to accept the exotic culture and social behaviour in general. McDonalds treated as a place to gain status. Efforts made to adapt Chinese cultural settings. McDonalds as a place to hang out McDonalds creating a family atmosphere for Beijing customers. Personal interaction with customers. Beijing customers want their children to learn American culture. Finally the author concludes saying, McDonalds has transformed into middle class family establishment, where people can enjoy their leisure time and experience a Chinese version of American culture. Critical Review I think that the article is relevant in todays world and the localization process mentioned by the author in the article. For any multinational company it is necessary that they try to adopt the home countrys culture i.e. tries to bring the home culture in their goods and services. As said by Mingsheng Li, a senior lecturer in the Department of Communication, Journalism and Marketing at Massey University in Wellington, New Zealand, the degree of localization largely determines the degree to which a business succeeds or fails in a given country. The more the company works toward localization, the more likely it will be successful. It is necessary to understand ones culture and traditions and respect their tastes. But what is localization? To attract the target market, a product is made linguistically and it is culturally appropriate. When a company plans for global expansion, it is involved in the process of communication with local customers. Therefore it is necessary for the company to get familiar with local culture, study different customs, and make proper adjustments to their strategies according to the varied response of customers. The best example would be McDonalds in India. Majority of people in India are vegetarian. So McDonalds introduced range of vegetarian food in their outlet with the added flavor of American culture in it. McDonalds also priced their product according to the income of common people in India. Indian consumers were aware f the fast food culture, but the fast food in India was unhealthy and unhygienic. Introduction of McDonalds in India brought about the change in the fast food culture of India. The burgers were priced at Rs 20 which was affordable for an average middle class family. If McDonalds did not adopted localization strategy in China i.e. if they did not adopted the Chinese culture and traditions and the consumers taste, it was a failed project and the people of china would have banned it just like the French company Carrefour, hypermarket chain with more than 100 stores in major cities in China. The company had donated a large sum of money to the Dalai Lama. Calling for a boycott against French goods, Chinese nationals also called for a boycott against tourist travel to France. (Mingsheng Li, a senior lecturer in the Department of Communication, Journalism and Marketing at Massey University in Wellington, New Zealand). According to the article presented by the author it talks about the recent changes in the Chinese society and the new tendency to adopt the foreign culture influences and transform them into local institution which was restricted by the Chinese political system during the Maoist era. I strongly agree with the article and its process of localization strategy. The brand name of McDonalds was already there in the minds of Beijing customers. And before the McDonalds entered the Chinese market, the people of Beijing were fond of the American style and its culture. They were keen to learn the American or the Western culture. And when McDonalds entered the Chinese market on 23rd of April 1992, it served more than 40000 customers on the first day. This shows that the Beijing consumers were waiting for such kind of change in China, where they can experience the American or the Western culture. McDonalds has always been a fast food restaurant. The fast food in China was expensive and unhealthy. As mentioned in the article, in the eyes of the Beijing customers McDonalds represents Americana and the promise of modernisation. People also patronize McDonalds to experience the moment of equality. But McDonalds mad sure that they follow Chinese culture and Tradition and also keep up with the taste of the consumers to be successful in Chinese market. Some of the strategy adopted by McDonalds to attract the customer is Online chats Madden, Normandy; Wentz, Laurel. Advertising Age, 7/31/2006. For its its growth strategy in mainland China, McDonalds has created a live online chat series with the popular portal Sina and Askme.com.cn, a website launched by McDonalds in the mainland. Consumers can interact with leading sports, entertainment and business figures. The first one-hour episode Aug. 1 in Beijing will feature Houston Rockets basketball star and Shanghai, China, native Yao Ming, who signed a multiyear global partnership deal with McDonalds in 2004. The online initiative has no target age group, The program aims to provide consumer-focused education and encourage active, balanced lifestyles, but also be seen as an effort to ward off potential concerns about the nutritional content of fast food in general in China. Opens drive-through in China Madden, Normandy, Wentz, Laurel, Advertising Age, 00018899, 1/30/2006. Chinas rapid transformation into a car culture had led McDonalds to open drive thru in China. Drive-through sites, which account for a large proportion of McDonalds sales in the U.S., reflect Chinas rapid transformation into a car culture. With almost 6 million automobile sales last year, China has surpassed Japan and is now second only to the U.S. in annual car sales in the year 2006. This kind of strategy is a sign of bringing the American culture in China. But they are keeping in mind about the culture and traditions of China.

The impact of aspergers syndrome on everyday life

The impact of aspergers syndrome on everyday life Aspergers syndrome is known to be an intellectual and developmental disorder that impacts an individuals life. Aspergers is often seen as high functioning autism which is associated with impairments in communication and social interactions, and Aspergers individuals often express patterns of repetitive behaviour (Floyd, 2009). Aspergers syndrome is known to be more prevalent within males than females and it is believed to be a genetic disorder (Seung, 2005). This essay aims to highlight the issues experienced by young Asperger males and how Aspergers impacts their lives. It also intends to contrast and explore the differences that exist between young male and female Asperger individuals and aims to highlight the stigmatisation and discrimination that is experienced by these individuals. Furthermore it will illustrate community development activities that have been created in order to address the health needs of Aspergers individuals, as well as provide future suggestions on how to fu rther enhance these childrens quality of life. One of the major impacts Aspergers has on young individuals is their inability to socially interact. Asperger males lack the cognitive ability to understand emotion and see viewpoints and beliefs of other individuals (Floyd, 2009) and as a result, are often viewed as obsessive and egocentric. Sorenson (2009) contends that this cognitive deficit is the primary cause of social and behavioural impairments exhibited by Aspergers individuals. Furthermore, Aspergers individuals have difficulty understanding the intentions of others and are unaware of other manneristic ways other than their own (Sorenson, 2009). This causes interactive issues with their peers as Asperger males are seen to have a primary focus on themselves and do not take into consideration other individuals. Despite this, male Aspergers have a strong desire to form and maintain friendships (Muller, Schuler Yates, 2004). Behavioural issues that are experienced by Asperger males include their inability to express emotion. Due to this, young Aspergers males often become violent and overwhelmed (Koning Magill-Evans, 2001). This highlights the frustration that can be expressed by an individual due to their inability to sufficiently articulate what they wish. Young Asperger males are also known to often be reclusive, however; some exhibit eccentric and inappropriate behaviour (Floyd, 2009). The most obvious behavioural problem expressed by Aspergers males is repetitive and compulsive behaviours (Macintosh Dissanayake, 2006). These individuals often become obsessed with specific topics for an extended period of time. Similarly, Aspergers males are also known to be aggressive and arrogant due to their cognitive deficits (Koning Magill-Evans, 2001). Due to these social and behavioural problems, oral communication and speech difficulties are also an issue that affects young Asperger males. These individuals are unable to hold conversations with others and due to this, young Asperger males can further find it hard to develop friendships with peers and sustain long term friends (Rao, Beidel, Murray, 2007). Although Aspergers males are often highly intelligent, many have learning difficulties. Aspergers males are known to be unable to articulate their thoughts and understandings and often exhibit symptoms of dyslexia (Church, Alinsanski Amanullah, 2000). These individuals struggle to adequately understand what they are learning and become forgetful of basic letters and numbers. Nevertheless, Aspergers individuals are highly logical and have the ability to retain factual and historical information (Floyd, 2009). Furthermore, due to their inability to comprehend other viewpoints and principles, Asperger individuals have a minimal attention span towards others as well as the inability to focus on tasks (Humphrey Lewis, 2008). Due to this, many young Asperger males are known to struggle at school and do not adequately meet the learning requirements or extend their capabilities. Nevertheless, Howard Cohen (2006) highlight that Asperger individuals who have strong friendships with peers ar e more successful at learning what is required and develop greater personal skills due to regular encouragement and inclusion by their friends. Aspergers is a personalised condition as each person exhibits unique symptoms. It is found that often young male Asperger individuals all exhibit variant degrees of symptoms and as a result, currently no universal measure exists to diagnose Aspergers. Due to this, diagnosis is often subjective and individuals are regularly misdiagnosed with learning problems or attention deficient disorders (Farrugia, 2006). Although males have a higher prevalence rate of Aspergers, the condition is also known to affect females (Lord, Scopler Revicki, 2002). Female Asperger individuals are viewed as highly capable and are known to interact and socialise differently than males (Wilkinson, 2008). Asperger girls are found to have less behavioural variants than boys and have better social abilities (Lemon, Gargaro, Enticott Rinehart, 2010). It is known that females overall have better coping capabilities than males and as a result, girls with Asperger can conceal symptoms more easily than boys (Lemon, Gargaro, Enticott Rinehart, 2010). Females that are reclusive are often perceived as shy and timid rather than an individual who potentially has a developmental disorder. This social construction of femininity is often the case many girls are misdiagnosed (Wilkinson, 2008). Girls are often initially diagnosed with anxiety and mental disorders and as a result, obtain a formal Aspergers diagnosis later on in t heir life (Kopp Gillberg, 2002). Due to this, females are often excluded because most intervention and studies have been conducted with a primary focus on male individuals. This is detrimental for female Asperger individuals as their condition may get worse and they are unable to obtain the sufficient support required. Nevertheless, young Asperger females that are diagnosed early in life are seen to perform better overall when compared to males (Kopp Gillberg, 2002). Many Asperger females thrive academically and are more capable of learning social skills and develop personal capabilities than males. As a result, Asperger females are often viewed as seen as better equipped when compared to males, as they are able to comprehend a diverse range of situations and ideas. They are known to often mimic other children and learn adaptability mechanisms to hide their differences (Lord Scopler Revicki, 2002). The most obvious symptom of Aspergers within females in comparison to males is their inability to desire friendships and their regular mood changes (Lemon, Gargaro, Enticott, Rinehart, 2010). Due to minimal exploration by professionals into female diagnosis, it is believed that females are just as likely as males to be affected, however; these individuals are either misdiagnosed or their symptoms are ignored (Lord, Scopler Revicki, 2009). As a result, Aspergers is believed to be more common than thought, nevertheless sufficient research into constructing a specific Asperger diagnosis criteria for both genders is required as well as an in depth analysis on female Aspergers individuals is also needed. Due to their social and behavioural problems, Aspergers individuals are regularly stigmatised. Stigmatisation is the primary form of marginalisation and highlights power differentials that exist between populations (Cook McCormick, 2006). Marginalisation is known to be a socially constructed concept, in which individuals are excluded from mainstream society and these people are often viewed as powerless (Cook McCormick, 2006). Individuals suffering with a developmental disorder are seen as unreliable and incompetent due to their inability to comprehend different ideals (Koning Magill-Evans, 2001). This often further marginalises Asperger individuals as they are seen as inferior to others within the community. Many individuals stigmatise Aspergers people to be the same, and are often unaware that Aspergers symptoms are subjective. This generalised and stereotypical outlook further acts as barriers for Aspergers individuals which increase their chances of being unjustly marginalised and discriminated against (Hughes Paterson, 1997). Messiou (2006) highlights that there are various types of marginalisation that are experienced by Aspergers individuals. The most common marginalisation experienced by Asperger males is social ostracism and exclusion by their peers. Other children are known to ostracise and avoid Asperger individuals due to their inability to associate to their behaviours (Howard Cohen, 2006). Due to this, young Aspergers males often feel the need to conform and try to be similar to their peers (Koning Magill-Evans, 2001). It was found that Aspergers individuals try not to express who they truly are as an individual and attempt to act how they assume society wants them to be like (Koning Magill-Evans, 2001). Muller, Schuler, Yates (2004) expressed that young Asperger males believe that they are limited within rigid societal structures in which they are regularly anxious about. Asperger boys are seen as abnormal and strange due to their inability to socialise and relate to other individuals (Church, Alinsanski Amanullah, 2000). Due to this, Asperger males are further ostracised due to societal members viewing their behaviours and attitudes deviant from the mainstream culture. Aspergers individuals prefer that their diagnosis remained unknown because they believe that people treat them differently when they knew of their condition (Muller, Schuler Yates, 2004). It was found that young Asperger males would rather others view them as extroverted and egocentric rather than an individual who is affected by a developmental disorder due to the possibility of attaching negative assumptions towards them (Muller, Schuler Yates, 2004). Furthermore, Aspergers individuals also have perceived marginalisation in which they believe others are regularly mocking or embarrassing them due to their differences (Messiou, 2006). Many young Asperger individuals express that they are aware of their differences and attach self-blame for their inabilities to be socially included and accepted by their peers (Humphrey Lewis, 2009). This notion of internalisation highlights that psychological manifestation exist within Asperger individuals and that Asperger males have individual identity issues due to feeling inadequate and not being accepted by others (Punshon, Skirrow Murphy, 2009). This often leads to further isolation and exclusion exhibited by Aspergers males as they further have no desire to associate with others because they are ashamed and lack self worth (Punshon, Skirrow Murphy, 2009). Asperger individual tends to become a product of their disorder, which minimises individuality and further stigmatises individuals due to additional ostracism and exclusion (Broderick, Caswell, Gregory, Marzolini, Wilson, 2002). Due to this, alongside negative experiences and societal isolation, it is known that mental health issues such as depression and low self esteem are highly prevalent amongst young Aspergers males (Hedley Young, 2006). Aspergers is known to be an intellectual disability and as a result, inequities towards Aspergers individuals currently exist. Disability is the development of the socially constructed view of what is viewed as normal and furthermore, what constitutes abnormal (Swain, French Cameron, 2003). Currently there is a lack of specific health services that have a strong focus on Aspergers health and wellbeing, and as a result; Aspergers individuals are unable to adequately maintain holistic wellbeing (Rao, Beidel, Murray, 2007). Furthermore, many Aspergers individuals attend mainstream schools and as a result; teachers often feel unable to teach these students (Macintosh Dissanayake, 2006). Mainstream schooling encourages many Aspergers to conform rather than express their individuality which often leads to educational attainment difficulties (Koning Magill-Evans, 2001). Although many mainstream schools facilitate Aspergers individuals by providing integration aids and speech pathologists, this is often a negative experience for Aspergers individuals because it highlights to the other students their needs (Martinez Semrud-Clikeman, 2004). As a result, this often stimulates teasing and ridicule by other students which often negatively impacts the Asperger individual. One of the major reasons these inequities exist for Aspergers individuals, is due to the lack of awareness about the condition (Floyd, 2009). Although over the years, more recognition and analysis about the disorder has been conducted, Aspergers individuals are still being categorised amongst Autism and other mentally handicapped individuals. Due to this, specific needs and requirements of Aspergers individuals are not being addressed and are needed to be tackled in order to successfully allow Aspergers individuals to excel. Although special needs schools exist, often Aspergers individuals are in the same class as individuals with severely mental impairment disorders. This is often detrimental for the growth and development of the young Asperger individual as they do not have the ability to adequately grow and develop as an individual (Church, Alinsanski Amanullah, 2000). In comparison to mainstream schooling Martinez Semrud-Clikeman (2004) found that individuals attending special needs education maintained yearly intellectual growth. Nevertheless, they further highlight that these individuals lacked social and developmental capabilities and were often severely reclusive and did not communicate to others. It is important that specific learning facilities for Aspergers individuals are developed in order for these young people to associate with like minded individuals. If this was created, these individuals would be able to further extend their learning capabilities as well as gain positive friendships w ith their peers due to similar characteristics (Muller, Schuler Yates, 2004). Community development activities that have been successful for Aspergers individuals is the creation of family support groups (Church, Alinsanski Amanullah, 2000). These groups are run and facilitated by family and friends of Aspergers individuals. This enables community members to gain empowerment and associate with other individuals who are experiencing similar issues. Although these groups provide support and resources to families, they do not necessarily have a specific impact on the Asperger individual. These individuals often do not attend the support meetings and as a result, these groups do not necessarily address their health needs (Church, Alinsanski Amanullah, 2000). Similarly, an effective health promotion activity that has been implemented for Aspergers individuals is the creation of a social and behavioural class (Bock, 2007). This specific activity enables Aspergers individuals to learn socially appropriate behaviours and mannerisms (Bock, 2007). Nevertheless, this program has been criticised because it is further requiring these individuals to conform to society, and because the attendees of the classes do not obtain the ability to interact and socialise with other non-Aspergers individuals in order to successfully utilise the skills that they may have learned (Rao, Beidel Murray, 2007). Although there is currently an Autism Awareness Day, more recognition and awareness about Aspergers is required. This can be achieved by local fun runs and the development of regular symposiums about Aspergers syndrome that are primarily run and developed by community members (Rao, Beidel Murray, 2007). This enables parents and community members to advocate on behalf of young Aspergers individuals to help gain equality and access to specific services, as well as expressing to others the diversity that exists within society. Greater awareness will enable a broader understanding of the problem in order to help decrease the marginalisation and discrimination that currently exists towards Aspergers individuals (Hedley Young, 2006). It will also enable societal members to realise that Aspergers also affects female individuals and will provide them the opportunity to create support and services for this population (Howard Cohen, 2006; Hedley Young, 2006). Furthermore, successful integration within mainstream schools is needed to be achieved. Integrating Aspergers individuals into mainstream education is required in order to minimise the current segregation issues that exist (Broderick, Caswell, Gregory, Marzolini Wilson, 2002). This can help eradicate discrimination towards these individuals and enable them equitable access to education. If integration attempts are unsuccessful, the development of peer Asperger workshops can also be a successful way of extending personal and intellectual skills of an Asperger individuals. It is important that these meetings are run by other Asperger people in which these individuals can act as mentors for the young Asperger males (Bock, 2007). This will help empower these young individuals as it is important to work with an Aspergers strengths and assets rather than highlighting what is needed to be achieved. Ultimately, the most important health promotion recommendation for Aspergers syndrome is early diagnosis and intervention. If greater awareness was provided, many parents may be attentive of triggers and behavioural problems whilst their child is young. Early intervention will enable the prevention of Aspergers individuals symptoms to become worse and will encourage the minimisation of Aspergers effects by being addressed early within their life (Rao, Beidel Murray, 2007). Furthermore, it will enable the implementation of a holistic approach to address the problem, by addressing the social and emotional wellbeing of an Aspergers individual.

Pro-Death Pentally Essay example -- Capital Punishment

Pro-Death Penalty There are many studies which show the death penalty as a non-deterrent to the serious crime problem that is faced in the United States. The death penalty continues to be the most controversial sentence with over half the states re-instituting capital punishment laws since the Furman v Georgia decision in 1972. Nevertheless, even if the death penalty were no greater a deterrent than a life sentence, some people would still advocate is the only way to get rid permanently society of dangerous criminals who deserve to die. Being that the death penalty is considered a deterrent to criminal activity does it make the execution morally right or just brutal? The death penalty is the highest capital punishment, which serves as a strong deterrent for serious crimes. While capital punishment could probably not deter mentally unstable criminals, it could have an effect on the cold, calculating murderer, such as a hired killer or someone who kills for profit. With the capital death punishment sending red flags to potential criminals, the fear of death might convince felons not to risk using handguns during armed robberies. The deterrent effect of an execution can produce a substantial decline in the murder rate. Although, some believe that a death sentence is a deterrent, others believe that it is cruel, and unusual punishment. There is not enough evidence to prove that the treat of a death sentence can convince potential murderers to forgo their criminal activity. Most murders involve people who knew each other, very often friends, and family members. Since murderers are often under the influence of alcohol or drugs or suffering severe psyc hological turmoil, no penalty will likely be a deterrent. Som... ...ource=bl&ots=nf5duzwmfa&sig=IhQeXxqd8ChN_rlsZ5Lt3kDu1LY&hl=en&ei=yaOaTbDmO4vVgAfgzOGgBw&sa=X&oi=book_result&ct=result&re Richard C. Dieter, E. E. (1998, 06). Retrieved April 03, 2011, from The Death Penalty in Black and White: Who Lives, Who Dies, Who Decides: http://www.deathpenaltyinfo.org/death-penalty-black-and-white-who-lives-who-dies-who-decides Siegel, L. J. (2009). Retrieved April 2011, 2011, from Essentials of Criminal Justice: http://books.google.com/books?id=22eNtpc6On0C&pg=PA355&lpg=PA355&dq=.+Racism+was+particularly+blatant+when+the+death+penalty+was+invoked+in+rape+cases+90%25+of+those+receiving+death+for+rape+in+the+South+and+63%25+of+those+in+the+North,+and+West+was+black STEWART, P. S. (1976 , March 31). Retrieved April 2, 2011, from Proffitt v. Florida (No. 75-5706): http://www.law.cornell.edu/supct/html/historics/USSC_CR_0428_0242_ZO.html

Queen Elizabeth’s Treatment of Catholics Essay -- British History

Queen Elizabeth’s Treatment of Catholics The reformation of England had been a long drawn out affair dating back to King Henry VIII’s Act of Supremacy in 1534. By the accession of Elizabeth in 1558, many historians believe that she inherited a country, which was still predominantly Catholic in belief. Although people of South Eastern England were likely to be influenced by the peoples of Europe, who were experiencing reforms, Doran (1994) suggests that the number of Protestants accounted for just 14 per cent of the population of Sussex and less than 10 per cent in Kent. Whether rural lifestyles were largely unaffected by changing religious doctrine due to a primitive communications network or general disinterest, as long as the laity were allowed to continue living as they had previously, is open for debate. However the attitudes of city dwellers in London, England’s premier city and official residence of the monarchy were quite different. The brief rule of Queen Mary, Elizabeth’s predecessor and Catholic half sister had brought about the restoration of Catholic practices and also a regime of Protestant persecution. Public executions of branded heretics proved to have an adverse reaction as it created strong anti-Catholic sentiment and rather than to extirpate the Protestant faith, those who converted to Protestantism, if they were not exiled went underground. Described by Briscoe (2000), Elizabeth I is considered to be one of the country’s most successful and popular monarchs. Unlike the reign of her sister Mary, which was by and large disastrous, Elizabeth made herself a powerful image of female authority ‘through the embellishment and through concrete policies that she urged her nation to follow’ (Jagger (1995)). Her policies could be attributed to the rigorous education she received as a child, which included history, languages, moral philosophy, theology and rhetoric. Her tutor Roger Ascham believed her mind to have no ‘womanly weaknesses, and her perseverance and memory to be equal to that of a man’ (Jagger (1995)). As an adult however, although very intelligent, ruthless and calculating at times, she was also renowned for her indecisive nature. This was due to the fact that ‘she sought peace above all other objects’ (Johnson (1974) p2): a trait, which many historians believe to have come from her father. Elizabeth viewed Catholicism as ... ... Doran S. (1994), Elizabeth I and religion 1558 – 1603, p48  Ã‚  Ã‚  Ã‚  Ã‚  Routledge Doran S. (1994), Elizabeth I and religion 1558 – 1603, p7 Routledge Doran S. (1994), Elizabeth I and religion 1558 – 1603. Routledge Jagger A. (1995) The life of Elizabeth I www.luminarium.org/renlit/eliza.htm Johnson P. (1974) Elizabeth: A Study in Power and Intellect Weidenfeld & Nicolson Johnson P. (1974) Elizabeth: A Study in Power and Intellect Weidenfeld & Nicolson Johnson P. (1974) Elizabeth: A Study in Power and Intellect Weidenfeld & Nicolson Queen Elizabeth I quote: Modern History Sourcebook: Queen Elizabeth I of England Selected Writing and Speeches http://www.fordham.edu/halsall/mod/elizabeth1.html McGrath P. 1967, Papists and Puritans under Elizabeth I, Blandford Press McGrath P. 1967, Papists and Puritans under Elizabeth I, Blandford Press Warren J. (1998), Elizabeth I: Religion and foreign affairs, Hodder & Stoughton Warren J. (1998), Elizabeth I: Religion and foreign affairs, p66 Hodder & Stoughton Warren J. (1998), Elizabeth I: Religion and foreign affairs, p69 Hodder & Stoughton Warren J. (1998), Elizabeth I: Religion and foreign affairs. Hodder & Stoughton   Ã‚  Ã‚  Ã‚  Ã‚  

Financial forecasting & planning Essay

Financial forecasts are, quite simply, your forecast of how your business will perform financially over, say, the year ahead. Preparing forecasts will help you to assess your likely sales income, costs, external financing needs and profitability. Financial forecasts are essential if you need to raise money from a third party, such as a bank. But they also provide you with the means to monitor performance on, say, a monthly basis and thereby exercise effective financial control – arguably the second most important management function in running a business. Objectives The aim of this section is to help you to prepare financial forecasts. It will enable you to: †¢Understand costing and pricing; †¢Use break-even analysis as a way of setting sales targets; †¢Understand financial forecasting; †¢Assess working capital requirements. Assignment The purpose of these assignments is to ensure that you are able to prepare the necessary financial forecasts for your business. Satisfactory completion of the set of assignments will demonstrate that you know and understand how to: †¢Identify and calculate the financial outlines it will be necessary to prepare. †¢Calculate your own personal survival budget. †¢Determine the funding/materials requirements of starting in business. †¢Consider how you will take and keep effective financial control of the business. †¢Consider and plan to deal with alternative scenarios. 1. Personal budget How much money do you need for yourself. Think about food, clothes, holidays, personal travel, etc. Draw up a personal budget. Don’t skimp. You may be in business to have fun – but you need to make money as well. Use this budget in calculating your costs and prices. Of course you may not have enough sales at the start to be able to take that amount of money, so you should also calculate the minimum requirement that you must take from the business. 2. Costing and pricing Calculate all your costs and determine a suitable price for your product or service. Think about your raw material requirements as part of your direct costs; think about your likely overhead costs. 3. Break-even Now that you have calculated all your costs and set a price, you should be in a position to prepare a break-even chart. Is your forecast of sales above or below break-even? Do you have a reasonable margin of safety? How much profit will you make if you achieve your sales forecast? 4. Forecasting profit and loss You should have all the figures that you need to prepare a forecast of profit and loss. What is your anticipated gross profit margin? What is your operating profit? How much money will be retained in the business? 5. Cash flow forecasting You should have all the figures that you need to prepare a cash flow forecast. Remember to think about everything shown on the profit and loss account, expenditure items not shown on the profit and loss and, in particular, to think about timing or receipts and payments. You will also need to think carefully about your stock holding requirements and your capital expenditure. The first time you prepare the cash flow, ignore any investment or borrowing other than that required for capital equipment. The worst cumulative deficit will indicate the minimum level of working capital required. 6. Forecasting your balance sheet Once you have completed the profit and loss and cash flow forecasts, you  should be able to prepare a balance sheet forecast. What level of working capital requirement is suggested by the balance sheet? 7. Sensitivity analysis Have another look at your profit and loss and cash flow forecasts. What happens if sales are 15% less than you have forecast? Do you still make a profit? What happens if raw material prices go up by 25%? What does this do to your profitability? Can you pass on such increases to your customers or will they switch suppliers? 8. Effective financial control You should now be in a position to exercise control over your business. Will you use a simple manual book-keeping system or a computerised one? As a brief reminder, write down the key reasons for keeping effective financial control. What are the critical numbers at which to look to ensure you retain effective financial control? Break Even Analysis Break-even analysis identifies the point at which your business starts to make a profit. You can work out the break-even point using any timescale, e.g. weekly, monthly, yearly, etc. To calculate the break-even point you need to know the following: †¢The total fixed costs of your business – these include rent and rates, your drawings, loan repayments, etc; †¢The total variable costs for producing your product – these include labour, materials and packaging; and †¢The selling price of your product. Once you have these figures, you can work out your break-even point using four simple calculations and plotting the findings on a graph. Example: Ron from Widgets ‘R’ Us want to work out how many widgets he needs to sell in order to break-even every month. He works his fixed costs out as follows: †¢Rent –  £167 per month †¢Salary –  £834 per month †¢Rates –  £70 per month †¢Loan repayment –  £100 per month †¢Total –  £1,171 ( £1 = Rs.84) (Note: It is better to round figures up rather than down, as this will increase your safety margin.) This figure can be plotted as follows: Ron then works out his variable costs for the production of each widget: †¢Materials –  £9.00 †¢Packaging –  £1.00 †¢Labour –  £11.00 †¢Total cost –  £21.00 per widget ( £1 = Rs.84) He selects a value on the ‘number of widgets’ axis (in this case, 250) and does the following calculation: †¢250 widgets x  £21.00 per widget =  £5,250 Ron plots this figure on the graph and draws a straight line from it to zero. The next step is for Ron to work out his total costs. To do this, he adds his fixed costs to his variable costs:  £1,171 +  £5,250 =  £6,421 ( £1 = Rs.84) He plots this figure on the graph and draws a straight line from it to  £1,171 on the ‘Pounds’ axis. Ron now needs to work out his revenue line. To do this, he simply multiplies his products’ selling price by the example number of widgets he chose earlier (250):  £32.50 x 250 =  £8,125 ( £1 = Rs.84) He then plots this figure on the graph and draws a straight line from it to zero. Ron can now find his break-even point simply by locating the exact point where the revenue line disects the total costs line. In this case, Ron must sell 100 widgets each month if his business is to break-even. If he sells more than 100, he makes a profit; if he sells less he makes a loss. Costing And Pricing Costs Although accountants define costs in several different ways, there are, effectively, just two types of cost. The first cost is that which is directly attributable to the product or service. Direct costs include, for example, raw materials and sub-contract work. If you make desks, for example, the cost of wood will be a direct cost. Within reason, the cost will be the same for each desk, no matter how many desks you make. When you make a sale the income first has to cover the direct costs relating to that sale. Whatever is left is called gross profit or contribution. All other costs are overheads. These include, for example, staff salaries, marketing, rent, rates and insurance. They also include depreciation; that is, an allowance for wear and tear on capital equipment. Overheads are often called fixed costs because, generally, they are fixed for the business. Interest is often regarded as a deduction from net profit rather than an overhead cost. You need to include it as an overhead in your costing calculations, even though it varies with the size of your overdraft or loan. If you are self-employed, you will take drawings from the business. Whilst, strictly speaking, drawings are an advance against profit, include them (and an allowance for income tax) as an overhead when calculating total costs. The contribution is so-called because it contributes towards covering the overhead costs. Each sale generates a contribution. When enough contributions have been made, and all the overhead costs are covered, they start to contribute to net profit. Price The price at which you sell your product or service clearly needs to exceed the total costs of providing it. But the price should also reflect what the market can stand. If you are selling a differentiated product or have  adopted a strategy of market focus then you may also be able to charge a premium price. If you are pursuing a cost leadership strategy you will need to be ruthless in keeping your costs down and under control. In calculating your price you will need to follow a number of steps: †¢Estimate your likely sales for a period, say, one year; †¢Calculate the total direct costs and divide by the sales volume to give direct costs per unit (say per product or per hour of service); †¢Calculate your total overhead costs and divide by the sales volume to give overhead costs per unit; †¢Add direct costs per unit and overhead costs per unit to give total cost per unit; and, †¢Add a further profit margin (to allow for reinvestment, etc). If necessary, add VAT as well. You now have a first stab price. How does that compare with your competitors? Will customers buy at that price? Do you need to reduce costs? Can you achieve a higher profit margin? What happens if you fail to achieve sales at the determined price? Remember that the overhead costs are fixed, so if sales fall the overheads will be spread over fewer items and the unit cost effectively increases. The converse is also true. Increasing the volume of sales means that the overheads are spread over more units, so the unit cost falls. This means that you can, if you choose, reduce the price. And reducing the price might increase your level of sales. It’s a fine balancing act. Depreciation Depreciation is an allowance for wear and tear on the equipment used in your business. As time passes, your equipment will usually lose value, and this can be considered a cost to your business. You need to think about how long you expect your assets to last. For example, if you purchase a computer system, you may forecast that in 5 years it will be obsolete. That means the depreciation rate is 20% per year. If you determine it to be 2 years, then it will be 50% per year. This does not have any effect on cash flow, just on how profits are calculated. Deprecation is an accounting cost that must be included to give a Profit & Loss account more relevance. Finance Action Planner (FAP) The Finance Action Planner (FAP) is a learning tool that will help you to: †¢Develop your all-round financial skills †¢Learn more about a range of financial issues †¢Identify suitable sources of finance †¢Create a set of financial forecasts †¢Test out different financial scenarios Financial forecasts Once you have an idea of your likely costs and an idea of how much you need to sell to make a profit you are in a position to prepare financial forecasts. There are three basic financial statements (the profit and loss account (P&L); the cash flow statement; and the balance sheet) that describe the activities and financial state of any business. These can be prepared on a historical basis – to show how a business performed during a defined period – or as forecasts – as estimates of how the business will perform in the future. 3 steps to forecasting 1. Businesses often start by forecasting their cash flow and then aim to derive other forecasts from it. It makes more sense, however, to start by forecasting the income and expenditure of the business, which will indicate whether you will make a profit, then worry about when money will be received or paid out – to discover if you will have enough cash when it is needed. Income and expenditure is summarised in a profit and loss account. 2. You will also need to look at your likely sales for, say, the year ahead. This needs to relate back to your market research and, if you are already in business, to previous performance. The direct costs can then be estimated (usually as a percentage of sales) to give gross profit. 3. The next step is to estimate the likely overheads. Deducting these gives an operating profit forecast. If the net profit is too low you will either need to assess whether you can achieve higher sales or whether you can reduce the overheads. When preparing your forecasts, remember to allow for increased costs, for instance, due to inflation or future pay awards. If you do need a loan, then you will also need to allow an amount for loan interest. If you use equipment, remember to allow for depreciation. Whilst depreciation is  not included in the P&L, you may need to allow for the replacement or repairs of machinery, so you may wish to include a contingency. The P&L forecast will show whether you are likely to achieve your first key financial requirement: making a profit. Preparing cash flow forecasts In preparing your forecasts, you will need to think carefully about all your costs, about your price and likely sales at that price and about the timing of both receipts and payments. As mentioned above, the first forecast that you set out should ideally be a P&L, summarizing income and expenditure for, say, the year ahead. You might do this monthly or annually. The P&L is important for demonstrating profitability; over the very short term, however, the key requirement is to generate cash and know the business’s working capital requirements. This can best be done by preparing cash flow forecast which should set out all the information, month by month, regarding cash inflows and outflows. The cash flow forecast should include: †¢Receipts of cash from customers; †¢Payments for raw materials; †¢Payments for all other expenses; †¢Drawings and wages; †¢Capital expenditure; †¢Capital, loans or grants introduced; †¢Loan repayments; †¢VAT receipts and payments (if VAT registered); and, †¢Tax payments. All of these items should normally be shown separately and in the month into which the money will be received, or paid by, your business. For businesses with a modest turnover and that demonstrate profitability in the year, it is normal only to forecast one year ahead, with a monthly cash flow. Larger businesses, especially those seeking equity investments and/or which do not show profitability in the year, may need to prepare forecasts  for two or three years. The first year cash flow is usually shown monthly, the second year quarterly and the third year just a single annual figure. It is often helpful when preparing cash flow forecasts initially to ignore any finance that is available from the bank or other lenders. The cash flow forecast then shows the true position of the business. It can then be used to decide if the budget is viable and can be adjusted to reflect the true position and to assess the total funding requirement. If you do not have sufficient money of your own, then you will need to seek loan finance or an equity investor. Most small businesses simply look for loan finance. Aim to match the term of the loan to the life of the asset for which it is required. It would be normal to look for a short-term loan, for example, to purchase equipment, or a long-term loan to purchase premises. You will also need to buy stock and pay overheads whilst awaiting payment from your customers. The money required is called working capital and is typically funded by an overdraft. When preparing your cash flow forecast, you may like initially only to include personal investment or loan finance for fixed assets and to ignore funds for working capital. The worst cumulative deficit will then give an indication of your total working capital requirement. Of course, the amount that you need to borrow can be reduced if you have more available to invest yourself. If you have a term loan, the capital repayments will not figure in your profit and loss account – they are not a business expense – although the interest portion of the repayments will be charged as an expense. However, the repayments do need to be included in your cash flow forecast. Balance sheet The money in a business can only come from three sources: capital introduced by the owner(s); loans (whether from the bank or, effectively, from creditors); and, retained earnings; that is, profit which has been generated by, and retained within, the business. That money is used to finance the fixed and current assets of the business. Current liabilities include: †¢Creditors †¢Overdrafts †¢Loans due within one year †¢Money owed under hire purchase agreements †¢Any amounts owed in VAT or tax, etc. In larger businesses, loans falling due in more than one year are usually shown separately. You will, however, have a better idea of your business’s performance if you show all loans as current liabilities. Current assets less current liabilities show your working capital requirement. Since the balance sheet is merely a snapshot, however, it may be better to deduce your working capital requirement from the cash flow forecast. The net assets are always equal to the capital introduced plus reserves; that is, the net finance, sometimes known as net worth or the equity of the business. The net finance, together with any long-term loans, is called the capital employed. All borrowing should be included when calculating capital employed. Pricing strategies The greatest danger when setting a price for the first time is to pitch it too low. Raising a price is always more difficult than lowering one, yet there are great temptations to undercut the competition. It is clearly important to compare your prices to your competitors’, but it is essential that your price covers all your costs. There are a number of possible pricing strategies from which you might choose. These include: 1. Cost based pricing – total costs are calculated and a mark up is added to give the required profit. 2. Skimming – you charge a relatively high price to recover set up costs quickly if the product is good or new. As more competitors enter the market, you lower the price. 3. Individual – you negotiate prices individually with customers based on how much they are prepared to buy. 4. Loss leaders – if you wish to sell to a particular market then you might sell one product or service cheaper to gain market entry. You balance this by selling other products or services at a higher price. This can be risky as the danger is that everything becomes a loss leader. 5. Expected price – what does the customer expect to pay? If you are selling a quality product, do not under price. Often the customer expects to pay a lot as the product or service has a certain ‘snob’ value and this may be diminished if you under price. 6. Differential pricing – you charge different segments of your market different prices for the same service. For example, offering discounts to certain people like pensioners or the unemployed, or charging lower rates for quiet periods. If, after working out your costs, the price you charge is much greater than your competitors’ then you will have to look at ways of reducing costs. Sensitivity analysis It is important to know how sensitive your forecast is to changes. Sensitivity analysis looks at ‘what if?’ scenarios. What happens to your cash position, for example, if sales fall by 10%? What happens if your main supplier increases raw material prices by 12%? Financial institutions when considering propositions for a loan particularly use sensitivity analysis. If your business is particularly susceptible to small changes, then you probably do not have a sufficiently large profit margin. You will thus be less likely to receive the loan required. You may find it difficult to cut costs. You may not be able simply to increase prices to improve your margins – that might deter customers. Are there other ways in which you can push up the margins, e.g. by increasing output? Having undertaken your sensitivity analysis, you may need to review elements of your forecast. Sensitivity analysis can help in making decisions. You may want to consider, for example, the effect of increased raw material, labour or overhead costs; of reducing prices, with constant volumes, to counteract competitors; or reducing volumes, with constant prices, due to over optimistic forecasts. Furthermore, if you are about to spend a large sum of money on equipment, you may want to look ahead several years, if at all possible. Including a sensitivity analysis in your business plan will demonstrate that  you have thought about some of the potential risks – and that is half way to avoiding them. VAT (Value Added Tax) VAT is tax paid on the value added at each stage of delivery of a product or service. It is a method whereby businesses act as tax collectors for the Government. If you are registered for VAT, by submitting a VAT return you can claim back what you have paid in VAT, and hand over what you have collected. Not all goods are taxable – for example, insurance, some education and training, and postal services are exempt. If items are VAT-able, then, ignoring VAT on fuel, there are two rates – standard (currently 17.5%), and zero-rated. Zero rated items are different from exempt items. It is only necessary to register if your output is taxable. If you do register, you will be able to recover VAT on your purchases including materials, capital equipment and overheads. You will, however, have to charge VAT on your sales. The difference between what you collect and what you pay out in VAT is passed on in due course to Customs & Excise. There is more paperwork involved if you are VAT registered – you need tax invoices showing your VAT number, an analyzed VAT account, and VAT return forms. It may, however, be advantageous to register voluntarily if your sales are below the turnover limit, because VAT paid on purchases can be reclaimed. You may also reclaim VAT on capital equipment, raw materials and stocks bought before registration, provided the business still owns them. If you are selling to VAT registered businesses, it is likely to be more attractive for you to register. If you are selling to the general public, it probably will not be. This is, however, an area where you should seek professional advice. CASE STUDY Brian’s Book-keeping Business Brian runs a book-keeping service for several small businesses. His overheads are as follows: Costs £ Per year ( £1 = Rs.84) Office costs5,000 Advertising 1,100 Insurance550 Telephone650 Vehicle running costs900 Other3,000 Brian works 40 hours per week. He spends 8 hours per week on administration, marketing, etc. He works 45 weeks each year allowing for holidays and illness. Brian draws  £200 out of the business each week. Brian has been asked to undertake a specific task and estimates he will need to spend 12 hours on it. What is the cost of providing the service? How much should he charge? Solution: What is the cost of providing the service? 1. Total hours worked per annum = 32 hours per week x 45 = 1,440 hours 2. Total drawings = 200 x 52 =  £10,400 3. Total fixed costs =  £11,200 4. Total costs =  £21,600 5. Costs per hour = 21,600/1,440 =  £15 6. For a job lasting 12 hours, the cost is  £ 180 ( £1 = Rs.84) How much should he charge? Brian has decided that he should also add a further 20% profit margin in case his costs go up and to make a little extra for reinvestment. 180 + 20% = 216 He is also registered for VAT and needs, therefore, to add VAT at the standard rate (17.5%) 216 + 17.5% =  £253.80 So the price he charges to his customer is  £ 253.80 Useful tips: 1. Some readers of your business plan will regard the financial forecasts as the most important component. It is where you summarise the expected income, dependent on your market research, and where you set out your expected costs. 2. The forecasts need to demonstrate that the business is viable and that there is a sufficient margin of comfort to allow for fall in demand or increase in costs. 3. Take care to prepare your financial forecasts as accurately as you can. Then compare your actual results with your forecasts and, if necessary, take corrective action at an early stage to keep yourself on course.

Advantage Of Television Essay

Communication Technology Communication is the imparting or exchanging of information by speaking, writing, or using some other medium. The communications revolution is based on three technologies Telephone Televisions Computer. The history and development of communication technology is one of the ever increasing speed and efficiency of communication over ever greater distance and ever decreasing costs. Telephone: Telephone / Mobile Phone is a system for transmitting voices over a distance using wire or radio, by converting acoustic vibrations to electrical signals. Today we can send a message from one side globe to another in seconds with touch of button via Mobile Phone. Mobile phone become a video-phone, computer, camera, TV, Radio, message minder, MP3 Music player, newspaper map etc. Television: Television is a system for converting visual images (with sound) into electrical signals, transmitting them by radio or other means, and displaying them electronically on a screen. Computer: Computer is an electronic device which is capable of receiving information (data) in a particular form and of performing a sequence of operations in accordance with a predetermined but variable set of procedural instructions (program) to produce a result in the form of information or signals. Telephone: Receiving and Answering Call, We use telephone in our Home, Office. Mobile Phone: Mobile phone is a telephone with access to a cellular radio system so it can be used over a wide area, without a physical connection to a network. We use mobile phone for Make a Call, Receive a Call, Text Messaging, Smart Phone: Smart Phone is a mobile phone that is able to perform many of the functions of a computer, typically having a relatively large screen and an operating system capable of running general-purpose applications. We use Smart Phone for making a Video Call, MMS, Use Internet, sending and receiving Email, use camera for recording. etc. Fax: Fax is an exact copy of a document made by electronic scanning and  transmitted as data by telecommunications links. Advantage of Telephone: Usages: Usages of Television – We use Television as a Mass Media Tele Text Interactive Television increasing speed and efficiency, ever greater distance and ever decreasing cost for use as Tele Tex, Mass Media and easy communication media between consumer & Customer, Government & Public. Because of Television we get up to date news from different part of the world. Computer Usages: A computer is a â€Å"Machine that performs tasks, such as mathematical calculations or electronic communication, under the control of a set of instructions called program.† (Microsoft Encarta 1998) We use computers in many ways that we may not even realise. In business, computers use barcode and scanners to check customers’ credit, to check out goods at a supermarket, and check warehouse supplies. EFT (Electronic Fund Transfer) electronically moves funds in the form of wages and bills between bank accounts. For Travel – Like booking Tickets, Checking Flight etc. Also we use computer for shopping or online Shopping as Ecommerce, Or E-business – Like e-Bay, Amazon Entertainment – We can watch any broadcast program connect Internet with Computer. Culture – Via internet we can published information about our culture to all over the world, we can meet with other national or cultural people. Such as social media site like – Facebook Bebo Twitter Linked In Google plus Pinterest Tumblr. Flickr VK Instagram Everything we use our daily life has advantage and disadvantage which affect our personal life, social life and normal life. Advantage of Telephone: Telephone Technology has increased dramatically over the last few years, making this issue a little more complicated in the post smartphone world. There are many advantages and disadvantages to using the telephone as a method of communication and some of them are more or less pronounced depending on whether you are considering a land line or a cellular phone. The basic advantages to a telephone. Keeping in contact perhaps on a more regular basis, if for example plans have to be changed quickly and a face to face meeting or a letter may take too long For emergency situations, obviously a cellular phone would be especially helpful in this way. It should also be remembered that a phone number is now required for many employment opportunities. Save time & Cost. Also cell phone is technology, having reached such a point as to now be miniaturized computers, offer access to a great deal of information, entertainment and aid for users. Such as Smart Phone became computer competitor and we use smart phone for upload video, download apps, check Email , make a video call using apps like Skype , google talk etc. Disadvantages of Telephone: Many people feel that phones have made life more hectic and work-orientated precisely because of our ability, and growing infatuation, with being connected to our work, friends and businesses twenty four hours a day. However, some research has also shown that the majority of cell phone use in the work places is actually focused on entertainment and social communication. So, instead of communications technology increasing our work load, it may actually be increasing our social obligations instead. However, there are some general disadvantages to both land line and cell phone use as a method of technology. To begin with: Phone communication is less personal in many ways and can lead to miscommunication and misunderstanding As a method of communication it is more expensive than say, talking Phones can raise privacy concerns not just over wire taps. Crossed lines do still happen and familiarity with using a phone can lead to personal conversations taking place in otherwise public settings. Using smart phone people can record and upload video which could be personal and private moment or something like pornography. Which affect our life badly. Also other disadvantage like – Disruptive Prevent face to face conversation Texting – detrimental to writing skill May damage our ability to focus for any length of time Stalking a bullying ( Like cyber bullying uploading offensive or private video picture) Health risk – like radiation These days marketing calls are being a head ache for everyone. Anonymous threats. Sexual abuses. Helps terrorism.