SolarCity International Expansion

Executive Summary

SolarCity has grown from the initial startup business into the contemporary market leader in the provision of customized solar energy systems. The firm is involved in the installation of solar systems in the residential sector across the United States and has additionally developed partnerships with large companies, government and learning institutions towards the provision of solar energy as the innovative option that fits across all their dynamic demands. The solar energy increase is not restricted to the United States, but the company is gradually spreading to the global market. Based on the analysis of the possible SolarCity expansion opportunities in South Africa and Brazil, Brazil was found to be the most potential market with the most potential towards opportunities for the expansion of operations. Brazil presents a potential emerging market that is characterized by a prospering middle class with an increasing demand for environmentally friendly energy to cater for their increasing lifestyles demands.

Introduction

SolarCity is an energy firm that is based in California America with branches across more than fifteen states. The firm is involved in the sales, installation, production as well as maintenance of solar energy in the United States. The company is made up of a highly qualified management workforce with exceptional skills that have enabled it to lead in the technological sector. However, prior to the last financial crisis, the company has been encountering negative earnings which were furthered by the world economic crisis. The company is slowly rising despite the rapidly rising challenges in the market in general. The company is highly reputable in America based not only on its resources but also the ability to meet the ever-changing demands of the market. The company has specifically acquired the lead through the use of strategic positioning as an innovative firm and effective marketing. As a solar energy provider, the company will be targeting low to middle-income earners with a desirable perception towards green technology. However, in order to succeed in the new market, the company will require a skilled labor force and a focus on cost reduction to support the marketing needs. Intellectual property protection along with joint ventures are also essential in ensuring its successful adherence to the set standards. The solar energy market is a competitive one which is mainly driven by the growing technology and the need for environmentally friendly energy. Thus, to understand the state of the markets a comparative analysis in Brazil and South African is conducted through a detailed PESTEL analysis.

Opportunity factors and Trends.

 Economic Market Opportunity and potential growth

Solar Energy holds notable potential in the contemporary market as one of the environmentally friendly options for the increasing demand for energy. There has been an intensifying demand with reference to the solar energy ability to advance in the industry particularly in some of the unexploited and emerging markets across the globe such as Brazil and South Africa. The transformation of the industry particularly in the retailing has also been proven through research that even though the development is higher in the developed markets such as the United States and the United Kingdom there, the potential is higher in the developing market since they are less exploited. Based on the acquired success of the uprising markets it is evident that more possibilities lie in expansions (Pereira, Camacho, Freitas & Da Silva, 2012).

Solar energy has become a preference across the globe due to the need for environment conservation via green technology. To start with, the products are highly demanded based on their accessibility, affordability and environmental protection value. The GDP of the developing markets is low which implies that despite the economic potential the financial stability is low which has resulted in the increasing reluctance with regard to the penetration of most retailing companies. Besides, even though these countries have higher economic markets potential with respect to buyer’s willingness and increased demands for the products, there is a heavy presence of under-developed infrastructures beyond the major towns or city’s. In other words, the population that is exposed to the market is lower which means that the larger market is restricted to accessibility. On this ground, online sales are also affected by the lack of proper infrastructure which hinders the ability to create awareness and familiarity with the industry.

Opportunity Support Factors

Affordability and availability of the products have resulted in the higher ability to change the monetary state and the spending capabilities of the developing countries. The development is apparent mainly in the developing countries such as South Africa and Brazil. There has been a rise in the spending abilities among individuals due to the increased rate of middle-class persons. Due to the economic stability middle and low-income earners have the highest potential of spending for energy products due to their increased energy fuel needs. The stability of the economic wellness in the developing nations in addition to affordability has created more opportunities for enhancing and expanding the retailing industry (Timilsina, Kurdgelashvili & Narbel, 2012). In that more firms are being often created by the foreign and domestic companies. The aspect has been facilitated by the fact that most of the investors have established the attractive nature and suitability of such investments in the developing nations particularly in Brazil due to its stable political and socio-economic environment. The integration of these forces has been a major force is supporting the growth of the retailing industry and the rising customer demand and spending potential. Based on Timilsina, Kurdgelashvili & Narbel (2012) reports indicates that 90 percent of individuals mainly from the developing nations consumes close to 15 and 20 percent on energy. Thus this illustrates the economic potential of the solar energy market today in Brazil and South Africa.

Brazil has more economic potential than South Africa. In that technological advancement and infrastructure is higher in Brazil than in South Africa. In Brazil, the middle-class composition has been rising rather rapidly which means that their spending is also high. The political state is also stable with the country making more emphasis on environmental conservation and the use of green energy. Even though South Africa is less exploited, it is evident that its unstable socio-political state makes the environment unfavorable for development since it’s more open for domestic investment which makes Brazil more favorable. As per 2016, the GDP of Brazil was 1.796 trillion USD which has risen with over five percent. This clearly demonstrates that there are more opportunities for development. Currently, S.A has 19 PV solar systems that are listed within the first 50 systems (Dorothal, 2017).

            Threat Factors and Trends

SolarCity operates within the technology industry where much innovation is needed to keep up with the advancing changes. It means that the company will be requiring a highly technology equipped workforce. It is evident that Brazil has a stable economy based on the availability of resources and its general capability to adopt the technology. On the other hand, even though South Africa presents notable potential since it is not highly exploited the existence of restrictive policies makes the investment impossible. In that, the company needs to operate under open and favorable regulation where the taxation is minimal to support the need for increased revenue generation. The political state in Brazil is more favorable. Besides the low and middle-class individuals comprises more than 60 percent of the entire populace which will offer a significant market for the company (Pereira et al., 2012). The company will be targeting this populace as it offers the affordability value which is likely to attract them since these individuals are price conscious.

Some of the critical factors that make Brazil more favorable for the business investment include GDP, lifestyle, government support, lifestyle, technology, and population. The economic stability of both countries is favorable, and thus the performance of the business is likely to be high (SineTech, 2018). The physical and communication development are core in determining the general performance and stability of the business. Brazil is developed, and its location is strategic which will allow the company to access supply efficiently which will then be fostered by its economic state. The aspect is essential in creating accessibility and convenience of products. The income gain across the populace is slowly increasing in general.

In the retailing industry legal, environmental and ethical measures play a key role in determining the effectiveness of the business (Furtado & Perrot, 2015). For a country that has invested well in investment then this is very essential for the growth of the business. The spending rate tends to be higher with skilled, educated and high earnings. On the other hand, the regulatory changes will mainly take place driven by political, industrial and environmental forces. Thus, the taxing system might impact business either positively or negatively. For example, in Brazil, foreign investment taxation is favorable when equated to South Africa. The investment in South Africa is more potential for the foreign investor since the market is stable and the government supports foreign investments.

            The Opportunity and Threat factors

            There is great economic opportunities for SolarCity in Brazil than in South Africa. Based on the analysis above it is evident that Brazil has a supportive government that supports foreign investments on the ground that the objective is to offer support to the industry to increase its global presence. South Africa offers higher economic threats based on the existence of restrictive policies and higher taxes that discourages foreign investment. The government mainly acquires its revenue from foreign taxation while those operating in Brazil are enjoying the same advantages as the domestic ones (Tomaschek, Haasz and Fahl, 2016). Even though South African has constantly advocated for foreign investment it has illustrated less support in creating favorable policies for the same (RECP, N.D). Both nations own the same level of technology in terms of infrastructure, communication and connections with businesses. While Brazil is a wealthy nation in terms of resources similar to South Africa. Despite the economic difficulties that both nations have experienced in the past they have made notable changes.

            With Brazil leading in terms of populace it offers a great market in general. The company can therefore take advantage of the market by exploiting it fully. Since the market is large that has not been exploited fully and there are fewer restrictions. This will also support its need to venture through the affordable approach. As the company that operates under rapid changes of technology and customers’ demands, it is essential for the company to expand and work in favorable markets that are linked with lower restrictions (Team, 2018). In that the success of the company can only be supported by the environment that allows flexibility, convenience as well as cost efficiency by reducing the expenses that are involved. In other words the company has more potential operating in Brazil given that the market supports all its needs. Besides, in Brazil the company will have access to well trained and competent individuals.

            Recommendations

            Based on the above comparative analysis of the external operating environment in Brazil and South Africa, it is recommended that SolarCity should focus on expanding its business to Brazil over South Africa. Both countries are similar and at the same time distinct with regard to their threats, opportunities and trends that they all own with regard to the solar energy industry.  Those are characterized by favorable socio-economic stability which particularly contribute to wellness of the economy. However some of their main differences are based on their political and ideologies which mainly favors the investments to be in Brazil. First, Brazil has been experiencing a GDP growth over the last few years, its education level is high and income rate is stable with an advanced infrastructure that supports the retailing industry. Brazil has an established retailing energy sector that is fully supported by favorable government policies due to the need to expand to the global sector. Thus, in Brazil the environment is favorable for foreign investment while in South Africa the environment must be harsh for profitability. The fact that it encourages domestic investment more accounts for the unfavorable foreign investments thus the company will face difficulties in their marketing effort while trying to create awareness and familiarity of their products. In addition the establishment of the domestic firms will create threats to SolarCity that will affect its ability to generate adequate revenue.

            Conclusion

            SolarCity is an American based solar energy provider that has acquired a leading position with regard to technological adaptation, innovation and competitive strategy. The objective of the company is ensuring that adequate revenue is created to stabilize the market while minimizing the costs. It is apparent that it is through innovative differentiation and affordability that the company has dominated the market. For the objectives to be met there is a necessity to exploit the market further. Thus, based on the stable external environment in Brazil the expansion is favorable as it has more economic potentials and minimal operating threats. In addition the presence of favorable policies and the less exploited market makes it even more favorable.

References

Dorothal, M. (2017). Top 50 Solar PV Plants in Emerging Markets. Solar Plaza. Retrieved from: https://www.solarplaza.com/channels/top-10s/11756/top-50-solar-pv-plants-emerging-markets/

Pereira, M. G., Camacho, C. F., Freitas, M. A. V., & Da Silva, N. F. (2012). The renewable energy market in Brazil: Current status and potential. Renewable and Sustainable Energy Reviews, 16(6), 3786-3802.

RECP. (N.D). South Africa Energy Sector.  Retrieved from: https://www.africa-eu-renewables.org/market-information/south-africa/energy-sector/

SineTech. (2018). Solar in South Africa: major cost savings and shorter payback periods. Retrieved from: http://www.sinetech.co.za/news-solar-radiation-south-africa.html

Team, E. (2018). There is a long positive road ahead for solar in Brazil. Energy Transition. Retrieved from: https://energytransition.org/2018/04/there-is-a-long-positive-road-ahead-for-solar-in-brazil/

Timilsina, G. R., Kurdgelashvili, L., & Narbel, P. A. (2012). Solar energy: Markets, economics and policies. Renewable and sustainable energy reviews, 16(1), 449-465.

Tomaschek J., Haasz T., and Fahl, U. (2016). Concentrated solar power generation: Firm and dispatchable capacity for Brazil’s solar future? https://doi.org/10.1063/1.4949202

Tosi A. Furtado & Perrot R. (2015). Innovation dynamics of the wind energy industry in South Africa and Brazil: technological and institutional lock-ins. https://doi.org/10.1080/2157930X.2015.1057978

The organization's structure that best describes my organization is the line type of systematic structure. The line organization people rarely share information, in other words, it is bureaucratic, and collaboration is less (Plath, 2013).

The line organization structure executed in a way that the head or CEO is at the top of the structure. Below the CEO or administrator, the directors are second in command together with a vice president if there is any present. The third stage or level has the managers and so forth. The structure tries to include even the operational workers (Plath, 2013).

Through other people's opinion in the organization, it is evident that line organization relates to a formal type of organizational systems that have a definite way of handling things. The procedures for making a decision well documented to give a vivid understanding of how things go about within the organization (Marquis, & Huston, 2017).

The line structure simplifies decision-making as it takes off pressure from one individual by delegating duties to other entities within various departments. More so, each department has a head who is in charge of management and decision-making within that particular department. Consequently, making decisions in the confines of a department one heads is an advantage, as one understands the needs of the department. Therefore, having a leader in each department helps to build and consolidate performance at the managerial level (Marquis, & Huston, 2017).

Not to mention, sectioning brought about by isolating functions into specialized department motivates the leaders to work hand in hand with other subordinates to bring about the success of the entire organization. The main advantage that comes with prompting administrators is that it outlines and defines the role and duties of each worker and other staff members. For instance, an IT administrator may call a human resource to carry out a function related to the human resource (Marquis, & Huston, 2017).

Reference

Plath, D. (2013). Organizational processes supporting evidence-based practice. Administration in Social Work, 37(2), 171–188. doi:10.1080/03643107.2012.672946

Retrieved from the Walden Library databases

Marquis, B. L., & Huston, C. J. (2017). Leadership roles and management functions in nursing: Theory and application (9th ed.). Philadelphia, PA: Lippincott, Williams & Wilkins.

Wonder Company Simulation

Background Review

As the new marketing VP for the company, the central role is to assess the decisions made by Thomas Joe between 2013 and 2016 and present new strategies that would improve the performance of W1, W2, and W3 products. The report mainly explores on the products life cycle while exploring pricing strategy as well as research and development budgeting approach to enhance revenue performance of the products. In this context description of products phases will be included to create and justify the rationale approaches for 2013 to 2016. W1 being in the maturity cycle has demonstrated desirable performance since the consumers are satisfied with its performance since the introduction. Focusing on pricing and R&D budgeting is vital to allow features development and innovation about the real intense competition (Wheeler, 2017).

On the other hand, W2 falls within the growth cycle since it is noted during its first simulation that the consumers are more focused on its performance rather than price for the past two years. For W3 the situation is different since the consumers are concerned about both the cost and performance. In this context, it becomes apparent that Joe made the wrong choices and thus R&D budgeting for both W1 and W2 will be increased to support features development and satisfy the performance need in the market. W1 price will be lowered to increase sales since the product is in the maturity phase. However, that of W2 will increase given that the customers are worried about the performance while that of W3 is also reduced to allow easy market penetration through cost leadership. There is a necessity to increase the budget for R&D of w3 to enhance its competitive positioning in the market.

The Year 2013

10 dollars will reduce the pricing of W1 from the current price of 285$ per unit to 275$. Since the product features are less innovative an aspect that might be affecting its performance, then the R&D budget will be increased by 7 percent which means that the expense will increase up to 40 percent. Secondly, the strategy for W2 to increase its pricing to 440 dollars per unit to compensate the development cost since the consumers care about the performance. With an R&D expense increase of 6 percent, the spending will be 40 percent. Since W3 is getting into the market where the customers are particularly sensitive concerning pricing and performance its price for each unit will be decreased by 15 dollars to fit within the cost leadership approach and achieve competitiveness in the market. The price will decrease from the initial $185 to $150 thus making the product favorable with R&D budget of 37 percent for the market establishment.

Simulation Results for 2013

The simulation score for 2013 accounts to 352, 243,200 dollars. The findings therefore illustrates that there is a profit increase from the initial sixteen up to twenty six percent with a respective sales volume rise and profitability. Based on the results of the form Marketing PV it is evident that the profit margin has improved. Since not all the products have reached the saturation level they will still have the ability to generate fresh sales. It is however unfortunate that W1 in the next few years will lose its ability to attract fresh sales as it has reached the maturity cycle in the market.

Year 2014

For this year the decision has been made with regard to the existing strategy which means that no changes will be made for W1. For this year the price of W1 which was originally reduced to 270 dollars remained the same given that it had been developed further to accommodate more innovative features that suits the needs of the customers. The decision was made on the ground that the R&D budget is to be increased to 42 percent and further pricing reduction would result in losses since the company had not recovered its investment. In addition, with enhanced performance price sensitivity had reduced significantly. For W2 the pricing will also remain the same to accommodate the growing need for the product in the market with an R&D increase to 44 percent. In that even though the consumers are more focused on its performance the product demonstrated higher potential with a lower potential that fits that of similar products in the market. There is no change for the product even with its high pricing since performance is the main focus for the consumers. For W3 the price remained the same since it is well developed in terms of quality features. With the cost leadership approach this aspect of pricing was essential. Thus, the R&D budget for W3 will be increased to 40 percent to accommodate features development and attract new buyers based on excellent performance and affordability.

Saturation Results for Year 2014

The general rating for 2014 accounts to 860,241, 149. Based on the results it is evident that there is an additional improvement with regard to revenue gain from 26 percent for the past year up to 30 percent. For this year all the three items had not reached saturation due to the rising sales rate and adequate opportunities for higher sales still remain with regard to all the existing goods. Even though W3 is improving its positioning, it is evident that it is still generating losses as the R&D cost is higher than the sales price.

Year 2015

On the ground of 2014 score, it is settled that there is a necessity for more reduction for W1 while increasing the R&D expense. While W1 R&D rises up to 45 percent that of W1 is increased to 47percent while it’s pricing increases with ten dollars to 450. It is worth noting that the lower the expenses their higher the revenue. However, the reduction is only suitable where the products have fulfilled the needs of the customers (Lamb, Hair & McDaniel, 2012). The customers in this regard range from price to performance sensitive segments. Thus W1 pricing strategy will be reduced to 265 dollars to allow the product to attract more customers In that as the features continues to grow then the willingness and readiness of the consumers to make respective purchases will also be increasing. With affordable pricing the sales will increase as well. On the other hand the price of W2 will remain the same given that the features are well enhanced due to the increased R&D budgeting and with quality performance then the pricing is not an issue based on the existing needs in the market. For W3 the pricing will be retained given that the customers are very sensitive and thus affordability is critical with regard to competitiveness. The R&D will rise to 45 percent.

Saturation Results For 2015

The general rating of 2015 accounts to 1, 281,927,788. Thus, it is evident that the improvement is minimal with a margin rise of less than five percent. In addition, there is a decrease of sales which also lowers the revenue for all the three commodities. The decrees is accounted to the sales reduction of W1 since it is already in the saturation point. There lacks any fresh sales for W1 and this implies that the sale will decrease further with time. For this year it is only W1 that is in its saturation phase and thus no increase for the sales is anticipated for the item. While both of the other products will continuously rise with regard to sales X7 remains profitable as it is still rowing in the market.

Year 2016

Based on the results above W1 pricing is to be reduced further to 260 dollars. Following the pricing approach and R&D budgeting changes above, for the fourth operational year, the most feasible decision is to reduce the R&D expenses while ensuring that the prices remain the same. In that, in order for the company to gain heavily from its investment there is a necessity to allow the product to create maximum gains while decreasing the general expenses. In that with lower expenses and products affordability the sales for all the prices will be higher which leads to more revenue gain (Abbing, 2010). The approach here is to ensure that the pricing is constant for the products while increasing the R&D investment to attract buyers. W1 development expense will increase up to 50 percent to allow its maturity in the market while enhancing its performance as whole while the other two remains the same.

Simulation Results

The rating is at 1, 490,715,195. The general results shows that the products have begun to lower their profitability gradually. In that while W3 is becoming more profitable the other two which have achieved maturity have shown notable reductions.

Conclusion and Recommendations

Evidently, from the analysis above carrying out carrying out an analysis of cost, sales volume and profitability is essential as it helps an organization in determining the most suitable pricing decisions. Besides, this is essential since an organization will avoid losses. The assessment is important for advanced planning with reference to revenue adhering to the knowledge of cost and pricing approaches. R&D is very essential for the production of innovative products that meets the needed quality with all the needed and performing features. Based on Joe’s approach, the company’s profitability for 2013 to 2016 is desirable. Unfortunately, the revenue continues to decrease even if the rating has been improved generally. The strategy change is therefore important for the company given that it leads to higher profitability. Thus, for the products to get stable establishment in the market there is a necessity to increase the development expenses while simultaneously decreasing the pricing as the product approaches maturity. W3 is bound to increase its revenue in the near future while the others might not be able to attract fresh sales in the market as a whole even with features development once maturity is achieved. Thus, this will create opportunities for the growth of the product and revenue in the market. 

References

Abbing, E. R. (2010). Brand-driven Innovation: Strategies for development and design.    Lausanne, Switzerland: AVA Academia.

Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.

Wheeler, A. (2017). Designing brand identity: An essential guide for the entirebranding team. Hoboken, New Jersey: John Wiley & Sons, Inc.

Historical Ethical Dilemmas

Abstracts

This paper looks into the ethical dilemmas in relation to organizational leadership in present corporate world. It presents unethical behaviors in the current workplace that involves behavior that go against set ethical standards. The paper also highlights the current nature of business ethics in relation to its development over the last 100 plus years. The 2007-2008 financial crisis is also presented as having largely been cause by people’s failing. Diversity and discrimination are important to leaders since the determine culture and success in an organization. Corporate outreach and company supported corporate programs are important since they involve caring for the public good and giving back to the community.

Current unethical behavior in the workplace

The current workplace is wrought with unethical behavior that goes against moral principles that serve as a guide in an organization.  Such acts do no conform to the standards of set in the workplace and may be perpetrated by the managers or an individual employee.  The common unethical behavior consists of misuse of organizational resources, theft of these resources, abusive behavior and dishonesty. Misuse of resources mostly occurs due to misappropriation of time where co-workers conduct their personal business when they should be working (Askew, Beisler, & Keel, 2015). An example involve conducting freelance business using firm’s resources and during company’s time.  This also involves violation of internet policies of the organization so that Cyber-slackers and Cyber-loafers become common, and these comprises of people surfing internet rather than working. Many workplaces have some leaders who use their authority or position to mistreat their juniors.  Unless such situations involve gender, races and ethnic origin little or no legal protection is offered against such practices. Theft of organizational resources is also common at the workplace , where employees check tamper , fail to keep accurate sales record so or even manipulate figures such as expense reimbursements for personal gain Askew, Beisler, & Keel, 2015). Dishonesty is also a common unethical behavior which is perpetrated by employers, managers and employees (Askew, Beisler, & Keel, 2015). This leads to lack of trust among members of an organization, an important aspect in good organizational culture.  

To minimize unethical behavior, leaders should put in place an ethical policy that focuses on effective communication, accountability and transparency. The leaders should set an example to be followed in the organization, and then reinforce behaviors that will encourage upholding of ethical policy. The leadership should also focus on educating and coaching the desired behaviors, and demonstrate critical behavior that indicates being ethical (Bonner, Greenbaum & Mayer, 2016).  The various ethical practices that can be employed to encourage ethics include setting value statements, discussing ethics while reviewing performance, making as part of requirement in hiring process and retaining employees who have shown ethical behavior.  Leaders should also focus on sharing credit for success and letting the employees know that honest is important (Bonner, Greenbaum & Mayer, 2016). The leadership should ensure that they review organization objectives and align them with policies to make sure that ethical performance is promoted all through.

Nature of ethics in current businesses

Over the least 100 years, the business practices have largely rose from exploitation to ethics, since the subject of ethics became more relevant as business rose in United States and globally.  The rise of big firms in the early 20^th century such as those dealing with oil exploration and drilling, real estate and finance led to more jobs but unfortunately, this created an exploitative environment for workers (Kaplan, 2014). These organizations became dominant in the economy and were able to infiltrate and influence the government so that big interests seemed to corrupt democracy. The burgeoning of other social issues brought about marginalization of workers indicated by poor working conditions and low wages. While corporate profits were driving growths in these businesses, some workers were being disfranchised which brought different reactions by workers in various countries (Kolk, 2016).  As the businesses grew the public and public became more concerned and the need for regulating the activities organization became prominent. Thus, public awareness, government regulation, unionization of labor and the rise of corporate social responsibility in the corporate world can be credited with the evolution and adoption of ethical standards.

For some years, an attack on corporate interests was mostly written off as a sustained attack on communist ideology, and thus served to promote the connection between businesses and governments.  The public later acceptance of ignoring business ethics for the sake of capitalism dwindled, and with advancement in technology and increased requirement for specialized labor, the need for corporations-employee direct interaction increased (Galbraith, 2017). This came with adoption of ethical standards. The rise of labor unions brought the need for improved ethical working conditions and the businesses implemented more policies to hold workers accountable.  The government adopted regulations aimed at controlling negative impacts of corporation’s operations. The increase in stock market was shifting the corporate leadership role from “stakeholder” model, where emphasis was on employees and customers to shareholder model, where a firm is expected to have a continuous growth in profits and stock. While the notion of shareholder being always right promotes competition it presents the risk of upholding business ethics (Kolk, 2016). This presents opportunities for managers in organizations and employees to sacrifice ethics for the sake of performance.  However, various corporate scandals such Enron Scandals has led to more regulation, calls for observing ethical standards and even prosecution. Policies on social responsibility have involved ensuring that social businesses are conscious to social concerns arising from their operations. These have largely improved the ethical standing of businesses.

Ethics and 2007-2008 financial crisis

The 2007-2008 financial meltdowns can largely be attributing to people failure, and not so much on the capital market process. Basically, the case of failure in free market capitalization was brought by decisions made by the people in corporate managerial positions and in the government.  The disruptive manipulation by the Federal Reserves in terms of interest rates, large subsidies, and even regulations in various sectors including banking, mortgages and housing was a critical contributing factor to the crises (Salsman, 2013).  The government had promoted various financial practices that can be considered reckless and morally hazardous, and the situation was made bad by various bail outs of bad scoundrels in managerial positions. The genesis of the problem can be traced to the adoption of a kind of policy that appeared to enshrine need over human and corporate greed.  While such policies had good intentions, they subsidized greed which eventually afflicted everybody.  The policy favoritism and priority were given to people mostly needed homes which they could not afford and even loans that they were could not be able to pay (Salsman, 2013).  Such kind of approach could not work in a free and rational marker, but was exploited by individuals who were backed by others persons’ money.  Such money came from government institutions which mean that the individuals in these offices and not the free-market institutions should carry the blame.  Politicians who were under the pay of organization such as Freddie Mac and Fannie Mae were responsible for policies that triggered the 2008 mortgage crisis.  Their practices were shrouded in incompetence, lack of transparency and accountability (Salsman, 2013).  In fact, recent studies have shown that the constant mistrust in Wall Street in the years after the crisis is an indication of underlying misgiving by the public about the financial sector practices (Argandoña, 2012).  The conclusion that most of the firms were not concern with the economy’s well-being or ethical goes a long way to attribute the melt-own to human failure.

There was a laxity monetary policy in US that allowed high debt and assets overvaluation which resulted to the crisis. The crisis was reproduced across Europe since the European Central Bank that had similar lax policy.  The ethical crisis in this situation can be discussed in three perspectives including individual moral failings, failings at the organizational level and at the theoretical and social ethics. At the individual level the, the excessive selfish desire for profit became a hindrance to the appropriate professional conduct so that some managers who were aware of the crisis went ahead to make decisions that they thought would favor their career (Miller, 2009). They were willing to ignore the set professional conduct. Some professionals including economists, the government and financiers arrogantly believed their skills and knowledge did not warrant the supervision of others which led to lack of restraint (Miller, 2009).  There were many misleading advertising, unnecessary manipulation of operations for the sake of higher commissions and withholding information.  The bankers ignored prudence, an important virtue in upholding ethical standards (Miller, 2009). At the organizational level, the crisis can be seen as failure in governance or leadership among the banks, rating agencies, central banks and other government agencies. Young and inexperienced professionals were entrusted with making decisions involving asset analysis, buying and selling. The superiors did not care to know their actions which mean that they failed in their oversight responsibility (Crotty, & Epstein, 2008). This indicates a personal ethical failure that led to the financial melt-down.

Diversity and discrimination

The notion of diversity consists of respect and acceptance, based on the fact that everybody in the organization is unique. Diversity is an important aspect that any leader who is seeking to entrench ethical culture must understand so at to recognize the differences among individuals.  It involves some conscious practices where leaders have to understand and appreciate that humans, their cultures and natural environment are interdependent (Patrick & Kumar, 2012).  It means that people must practice mutual respect in terms of experiences and qualities that are dissimilar to theirs.  Appreciating diversity at the workplace will make people from different socio-economic backgrounds to be confortable while working in a given organization(Patrick & Kumar, 2012). It involves facilitating equal opportunities for all employees and even potential employees so that rewards and promotions are not based on gender, race or creed but purely on merit. Organizations will benefit from promoting tolerance among the workers so that they can embrace differences in other people (Patrick & Kumar, 2012). This will open up new horizons with various customer demographics, methods of internal performance and even business partners.   

Discrimination is among the major ethical considerations that leaders have to encounter in an organization. Discrimination relates to diversity in that appreciating diversity will ensure that no discrimination is meted on an individual on the basis of their uniqueness. Institutionalized discrimination results in sustained privileges for some people and creation of sustained disadvantages for other people (Ferrell, 2016). Leaders have to cultivate a culture that abhors discrimination which will go a long way in building cooperation across differences so that people can work together in eradication of any kind of discrimination (Ferrell, 2016).  Leaders have to ensure that equality is promoted in their organization and this means that the best competences are exploited.

Corporate outreach and company supported corporate programs

Corporate outreach and volunteer programs supported by a company are important for organizations that want to contribute towards the wellbeing of the community in which they operate.  The idea of Company sponsored volunteer programs is valuable in ethical terms since the company acts as the vehicle for improving the society (Madison, Ward & Royalty, 2012). It would be unethical for a firm to ignore the issues affecting the society or the general public good. For example, company should show genuine interest in and support things valued by employees since they are members of the community and thus, they desire to reflect important values to other members.  By sponsoring the volunteer programs, the organization will be supporting a cause that is highly valued by employees (Madison, Ward & Royalty, 2012). The programs enable the organizations to constantly commit themselves to some shared values that will ensure that their interests are aligned with public good.  Corporate outreach is important since it involves giving back to the community and also comes with public relations benefits (Rochlin, Coutsoukis & Carbone, 2001).It makes it possible to change general relationship between an organization and consumers since the firm is involved in a cause that benefits the community.

Conclusion

The current workplace is wrought with unethical behavior that goes against moral principles set in workplace and professional standards. Businesses have evolved to be more ethical with time, as the society become more open. The 2007- 2008 financial melt-down can largely be attributed to human failures that affected domestic and global capital market. Discrimination relates to diversity in that appreciating diversity will ensure that no discrimination is meted on an individual on the basis of their uniqueness. Corporate outreach and company supported corporate programs should be embraced because they help in improving a company’s public relations.

References

 Bonner, J. M., Greenbaum, R. L., & Mayer, D. M. (2016). My boss is morally disengaged: The role of ethical leadership in explaining the interactive effect of supervisor and employee moral disengagement on employee behaviors. Journal of Business Ethics, 137(4), 731-742.

Askew, O. A., Beisler, J. M., & Keel, J. (2015). Current trends of unethical behavior within organizations. International Journal of Management & Information Systems (Online), 19(3), 107.

Kolk, A. (2016). The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business, 51(1), 23-34.

Kaplan, R. (2014). Who has been regulating whom, business or society? The mid-20th-century institutionalization of ‘corporate responsibility’in the USA. Socio-Economic Review, 13(1), 125-155.

Galbraith, J. (2017). American capitalism: The concept of countervailing power. Routledge.

Salsman, R. M. (2013). The Financial Crisis Was a Failure of Government, Not Free Market. Forbes. Retrieved from: https://www.forbes.com/sites/richardsalsman/2013/09/19/the-financial-crisis-was-a-failure-of-government-not-free-markets/#1fc37eb51c39

Argandoña, A. (2012). Three ethical dimensions of the financial crisis.

Miller, R. T. (2009). Morals in a market bubble. U. Dayton L. Rev., 35, 113.

Crotty, J., & Epstein, G. (2008). Proposals for effectively regulating the US financial system to avoid yet another meltdown (No. 2008-15). Working Paper, University of Massachusetts, Department of Economics.

Ferrell, O. C. (2016). A framework for understanding organizational ethics. In Business ethics: New challenges for business schools and corporate leaders (pp. 15-29). Routledge.

Patrick, H. A., & Kumar, V. R. (2012). Managing workplace diversity: Issues and challenges. Sage Open, 2(2), 2158244012444615.

Rochlin, S., Coutsoukis, P., & Carbone, L. (2001). Measurement demystified: Determining the value of corporate community involvement. The Center for Corporate Citizenship at Boston College: Boston, MA.

Madison, T. F., Ward, S., & Royalty, K. (2012). Corporate social responsibility, organizational commitment, and employer-sponsored volunteerism. International Journal of Business and Social Science, 3(1).

Case5_Genzyme questions

 The business model for Genzyme involves a focus on smaller area or disease towards which it directs its resources for research and development.  The firm focuses of treatment of diseases such as genetic disorders which has seen it perform above other firms (Green, 2012).  For a biotech firm to succeed in the industry, it has to shift from focusing on the biggest areas of diseases and related drugs and specialize in a specific area.

The Orphan Drug Act was a legislation passed by the U.S Congress with aim of assisting the biotechnology firms to attract funds they need in their research and development in the treatment process for a rare disease. It serves as an incentive for firms in this industry to increase their efforts in researching on and developing treatment for rare diseases. The incentive is in form of monopoly for sales over a seven-year period if a firm successfully comes up with such drugs (Green, 2012).

The business model for Relations Investors is defined by the fact that it was an Activist Investment Fund.  Its business model involves a focus on profits by way of equity portfolio of its clients.  The firm targeted other organizations whose asset allocation and corporation governance were not effective with an aim of having an aim of gaining significant influence in their management.  Relational Investors would then be able to have an influence on important decisions made through its representatives as board members (Green, 2012). This influence is evidenced by the resignation of CEOs once Whitworth gained contact with firms by becoming a board member. The RI targeted Genzyme because it saw an opportunity to influence decision on issues relating to quality in the production process.

Termeer should embark on managing Whitworth by offering some of items he demands while not giving into demands that would jeopardize the core mission of the firm. Through this the CEO would be able to manage the various production issues highlighted by Whitworth for the benefit of Genzyme relations with regulators and overall performance. This means that Whitworth would not be allowed to hamper the continued high performance of the firm.

 Reference

Green, K., (2012).Genzyme and relational investors: science and business collide? Darden Business Publishing.

HR and Development

10: Coaching & Performance Management

HR plays a critical role in people’s management as part of the organizational resources. The management incorporates recruitment, employing, coordination and proposal of workers training and development approaches (ASUGtv, 2013). Organizational development is the functions of supporting organizational efficiency by supporting structural, cultural as well as strategic collaboration to respond to the necessities of the evolving business world. Leadership style, reward system, and work structure are the main factors that influence employee’s motivation in the workplace. With proper leadership, the needs of motivation are well accounted. Career management and development play a critical role in developing the focus of the organization and increasing its ability to position itself competitively. Besides, this is beneficial for individuals in career growth. Training is an initiative that assists workers in learning specified skills that leads to improved performance while development is broad and is centered on the growth of workers and future roles. Many people in the world today view diversity regarding race and ethnicity, but diversity is more than this because it also involves gender age and even religion. Thus, HRD helps in facilitating HR is the one that creates changes and encourages it by communicating to the employees. EAPs have intended work based initiatives that provide free and close assessment and short-run counseling and follow-ups to those with work-related or personal issues.

While engaging in coaching conversations my experience was quite unique and fascinating. I found the activity as very useful since effective coaching conversations fosters authoritative employee engagement. Clarity, effective communication and compassion were all present. In that all the objectives of the program were well listed and demonstrated. However, the lack of confidence and commitment when giving feedback might have affected the conversation. In that confidence is essential in motivating the involved workers.

11: Discussion Forum - Team Building

Team building refers to the collective phrase for varying kinds of activities utilized to improve social relationships and describe individual’s responsibilities in the teams. Team building is a necessity for any business that seeks to increase its productivity, motivation, creativity, communication and collaboration. Such aspects are necessary as they assist the organization in meeting the set objectives in general. Even in a new location team building for committed workers within the marketing and operative sectors are needed. In this context, it is only those with the most enhanced skills that will be transferred and laying off the less qualified might raise legal issues. The employees can be sourced from within the company or outside while focusing on a reward system to attract talents from the market. As the HR collaborator and team builder I have learned that successful teams are the ones that consistently focus on the needs of the workers to motivate them. A motivated workforce is associated with high levels of productivity (Pink, 2009). This therefore opposes my prior notion that team building is easy and this can be applied in learning to focus on higher performance.

References

ASUGtv. (2013). How HR Can Be a Business Partner. Retrieved From: https://www.youtube.com/watch?v=9sJINLcGP5k

Pink, D. (2009). The puzzle of Motivation. TED Global. Retrieved from: https://www.ted.com/talks/dan_pink_on_motivation?language=en

Conflict in the News

Article: STARBUCKS AND THE ISSUE OF WHITE SPACE

The New York Times reports that there was a conflict of racial discrimination in the Starbucks when a white employee reported two black men to the police for suspicion of trespassing and causing disruptions on 12 April 2018 (Cobb, 1).  Black people in the place of work face discrimination and prejudice as white people assume that blacks are associated with danger and poverty.  The two men who were arrested were potential customers, and they were waiting for a white business associate, Andrew Yaffe. When black people are in "white space," they face hostile examination and heightened scrutiny, or in other words,   Starbucks conducts racial profiling based on customers' race, ethnicity, disability and more.

  In resolving the conflict, Starbucks used two strategies. First, the two parties negotiated directly, and they arrived into a mutually acceptable agreement.  During the negotiation, they agreed to offer a free college education to the men and to implement changes based on news policies on racial discrimination and fundamental rights. The second strategy of resolving the conflict was ‘racial-bias training’ (Cobb, 1). This  conflict resolving method was  a kind of collaboration  where  the goal of the training was to  create an acceptable solution by making policies  and  learning  the importance of race  and identity and the need of eliminating ‘color blind' and  holding ‘color brave’ (Cobb, 1). The training aimed at supporting equality and equality in the place of work regardless of race and ethnicity.

  The two strategies, that is; negotiation and racial bias training led to positive results in that they combated racial bias by creating a long-term commitment to race issues. Also, the new policies that were implemented led to structural and systematic adjustment since people could use the stores for free (Cobb, 1).  I agree with these results because the negotiation aims to produce positive outcomes and as the two parties discussed the matter, they settled the differences and achieved a positive outcome.

However, I would resolve the conflict differently by using the mediation method.  I would use a mediator who would promote reconciliation without forcing an agreement.  Mediation could also allow both parties to meet with the mediator separately and express the factual issues. Yet, the conflict could have been avoided if the company had already implemented the anti-discrimination policy, if the company could have encouraged diversity by having a diverse workforce,   if the company had an open communication for employees to report racism, and if the company had an anonymous reporting system (Cobb, 1).  It is possible for Starbucks to avoid conflicts by establishing desirable and attractive goals.

 Work cited

Cobb Jelani. STARBUCKS AND THE ISSUE OF WHITE SPACE.  2018. The New York Times. Retrieved from: https://www.newyorker.com/magazine/2018/06/04/starbucks-and-the-issue-of-white-space

Cultural Influences on Business Operation

Country: Japan

 I am unfamiliar with Japan, and it is important to understand its culture before conducting the business. After researching specific culture in Japan, I learn that the country has a multifaceted culture which is rooted in both the traditions and modern society. The first specific culture is based on the Japanese language. I have learned that there are about 124 million speakers of the Japanese language and they tend to copy the Chinese characters such as the use of vocabulary.  Having understood that majority speak the Japanese language, I was interested in understanding more about the business, and I learned that on etiquette and customs, people are expected to have good manners (Alston & Takei, 2005). Japan has a formal business etiquette in a business setting in that a person in the highest ranking gives out a business card. The card is an indication of the beginning of a relationship, a sign of utmost respect and a sign of self-introduction.  The guest is also expected to give out a card to introduce himself respectfully.   In business meetings, an individual should dress in a formal way, wait for the host to show the position to sit, the visitor is not expected not lead the meeting or to be the first in eating or doing related things. The visitor should get involved in the dialogue by taking notes using black of a blue pen.  In business management,   the business owner or the employer should avoid praising a single individual but should recognize all individuals and reward them as a team (Alston & Takei, 2005). Employees also develop a sense of belonging when the manager places the company in a social media profile for friends and families to value the company.  Japan is full of people with a degree and a higher level of education and a higher percentage use internet. Overall, the specific business practices I expect with relation to culture are handshake, business card etiquette, I should have a higher level of education since Japanese deal with high-ranking individuals, I should focus on group orientation, dress formally such as gray suits and participate in meetings (Alston & Takei, 2005).

 If I were to open a business in Japan, the ‘cultural-wise' expectations I expect include; highly educated workforce who would achieve the goal of the business. This is because, university education in Japan is valued and majority of workers are educated.  On the same note, I expect quality leadership, hardworking employees, innovation, high level of expertise and knowledge.  Second, I expect a strong work ethic because the culture focus on group orientation which means that workers are educated and committed as they work as a team thereby creating a sense of responsibility (Alston & Takei, 2005). 

            As well, there are specific cultural items of concern that I would report back to my organizational leadership. The first cultural item of concern is the business card.  It is important for the leadership to know that the card is essential since it contains the title and it acts as a formal introduction. My Organization should be prepared for the special occasion and take care of the business card (Alston & Takei, 2005).  I would also report on matters concerning the dress code where professionals are expected to wear modest clothing such as suit with tie.  It is also important for the leadership to know more about the greetings which involve bowing down the head when greeting senior people. Last, the leadership should be well prepared in attending the meetings. They should be ready to negotiate during decision making (Alston & Takei, 2005).

Reference

Alston, J. P., & Takei, I. (2005). Japanese business culture and practices: A guide to twenty-first century

Japanese business. New York: iUniverse.

HR and Development

Equal employment opportunity (EEO) is a phrase that proposes equal working opportunities to everyone with no biases that is grounded in race, gender, religion, disability, age and so on. On the other hand, affirmative action entails those policies that are objected towards raising the composition of women as well as minority groups within a given firm. Diversity management involves the procedure through which a customized culture is developed that attempts to manage diversity in a given setting on the ground of the existing cultural difference thus enhancing the essence of variety. In this context, it is evident that EEO and affirmative action can never co-exist concurrently. In that EEO does not create seek to favor any aspect or certain individuals as it considers everyone as equal while the affirmative action is discriminative since it only aims to increase opportunities for women and minority groups in the organizations. Thus, EEO and diversity management can exist as they are directly connected since both seek to eliminate or deter any form of discrimination.

Journal

Your name:

Journal Number:

            Real Estate in British Columbia, Canada

This section provides a detailed analysis of the real estate market in British Columbia (B.C), Canada. This incorporates an overview and review of the existing data concerning the real estate market in the state. The objectives are achieved through the application of various marketing theories to establish the actual state of the industry. The report focuses on several methods which include PESTEL analysis, Porter’s Five Forces, SWOT analysis, Marketing Mix, Balanced Score Card and Ansoff Matrix. The primary aim of this report is to establish the viability of the market based on its current situation by highlighting its strengths, faults, and potentials.

PESTEL Analysis

Political Factors

Political factors serve a significant responsibility in the determination of the forces that generally affect real estate investment as well as profitability in BC. The real estate industry has always been so strategic, but it has also evolved in the recent into a well-organized sector. The Canadian government has developed a real estate regulatory intervention authority for the coordination of regulatory efforts at the federal and state levels respectively. Real estate investments have increased in the recent as the industry is ranked among the top leading industries regarding economic influence. The regulation is aimed at collecting taxes from the industry while creating a balance with the country’s economic vision and directions. The political state in BC is not only stable but is one that generally supports investments from local and foreign corporations (Wisemean, 2011). With the presence of favorable policy and the active government participation in supporting investment, the industry has achieved remarkable growth.

Economic Factors

Technology development and modernization have given rise to intense construction in the urban and rural areas. BC is characterized by a state financial state. Due to the stability of the economy, the income rates have grown significantly in the last decade. There is a notable level of increase for middle-class individuals requiring more modernized housing. Thus, it is the rising income earning as well as the rampant urbanization that is responsible for the present real estate success. In fact, it is accounted that in BC real estate account for more than 10 percent of the state’s annual revenue is one of the industries with the fastest development rate (Wisemean, 2011). However, the increasing inflation rates within the sector are gradually affecting the prices which have led to a decreased growth rate between 2010 and 2015. Besides, the stability of the economy additionally facilitates easy financing options which in turn encourages more investments.

Social Factors

Canada is highly reputed for its possession of educated and well-skilled personnel. The aspect is reflected in BC. The diversity level is also high as the aspect that has been fueled by globalization the reason behind the rising demand for modern housing and real estate services. BC does not expect any scarcity of the expert workforce soon based on the increased populace inflow. BC is guided by the individualistic culture which mainly emphasizes on competition and prosperity. From education to the business sectors individuals are governed by the need to prosper since the culture is not restrictive. The government has reserved more funds for rural housing as part of social stabilization (Gill & Williams, 2011).

Technological Factors

Technology is responsible for the increased disruption that is taking place in various industries and the real estate one is not an exception. Real estate is currently more rampant in the urbanized setting but also slowly getting into other environments. In catering for the modern technological needs several technologies such as mold gathering and cement blowing machines are being utilized for efficiency, speedy construction, quality as well cost saving. Also, technology is being used in the industry as a strategic alternative to the development of competitive advantages (Blazek, 2013). In that, the use of electronic platforms in keeping records and information has been useful in tracking stock and maintaining constant communication with suppliers to avoid delays. Also, the success of the industry’s marketing and awareness incentives has been promoted by technology which helps in attracting consumers.

Environmental Factors

The success and benefits of the real estate industry in BC is being enjoyed by many. However, it is worth noting that environmental degradation accompanies the progress by cutting trees, hills excavation, building materials exploitation such as such leading to erosion and agricultural decrease (Marchak, 2011). Thus, the government is focusing on the general minimization of such effects by encouraging the proper use of resources and guarding natural ones such as trees and agriculture which play a critical role in cleaning the air and feeding people respectively St-(Hilaire, Ragan, & Leonard, 2007). The aspect possesses a threat to the industry since the constructions might be halted in the future.

Legal Factors

Every building necessitates registration and approval from the agencies. The process is always an extensive one since it requires clearance from the landowners and assessment from the government to establish the real practicality of such constructions. The companies must adhere to the set laws and practices. Also, the taxation rate has been rising in the recent which affects investment and the profitability of the involved companies. Such factors are the primary determinant of the move that the industry is supposed to utilize.

Porter’s Five Forces

The threat of New Entrants

The actual capital and resources that are needed in setting up a real estate firm are unusually high given that the inventories have to be organized and prepared by the construction developers before beginning. Also, in the industry there is no advance pays from the consumers thus the firm is supposed to fund everything. In this context, new firms in the industry usually experience intense difficulties in their attempt to grab projects particularly the large one since track records are also used in the assessment. In this context, it is only the well-established firms with more resources and a desirable reputation that can take such initiatives in general. In addition, based on the last financial crisis BC is still in the recovery process, and the rise of the real estate constructing and developing firms in the market has further lowered the profitability of the industry (Wisemean, 2011). The industry is mainly focused on the reduction of cost so that their profitability can rise in return. However, the cost of living has affected even the prices of materials thus necessitating the firms to focus on outsourcing most of the inventory which has played a part in cost reduction (Ebner, 2018). Also, the companies also plan on reducing the operating prices about their management offices as well as minimizing the scope of operating which is associated with extraordinary operating expenses. Thus, this is a form of a challenge and impossibility for the new firms as well as the established ones. However, new firms are the ones that face the most difficulties which then implies that entrant threat is minimal.

Bargaining Power of Buyers

The products in the industry such as the construction spaces are average. The switching expenses for the buyers within this industry is particularly very utmost. In that, the consumers in the industry are mainly involved in settling for the consumers with the best record such as the brand image. In this context, since those that offer the least prices are not very skilled or have no favorable reputation in construction the buyers bargaining authority is minimal. Property rates went down during the last financial crisis which created affordability for the buyers and gave then bargaining power an aspect that has changed in the course of the previous few years. Most individuals in the state are not able to afford these properties even though the development companies are unwilling to lower them considering that their operation expense is high and thus the move would lead to losses which will push most of them out of the industry (Hilaire, Ragan, & Leonard, 2007). As the industry is becoming very competitive, the sellers are attempting to entice the buyers through the provision of discounted deals thus the buyer's power is average.

Bargaining Power of Suppliers

In the market that is mainly dominated by well-established company’s supplier's bargaining authority is low. There is minimal to zero switching expense for the companies while acquiring raw materials needed for the development such as cement, paint and so on. Forward integration, therefore, presents minimal threats which offer the involved companies with better switching opportunities. In this context, the suppliers have less authority in influencing the responses of the firms (Mitham, 2017).

Threat of Substitutes

In the real-estate sector, there is no substitute for development and construction since the housing sector depends on it ranging from personal to commercial buildings. With no alternatives, this generally implies that there is no threat.

Intensity of Rivalry

Competition in the industry is intense due to a large number of established and new companies that are currently in operation. All these companies are providing the same products and services which are not differentiable unless several advancements in designs and materials are used which in turn makes the operating expenses higher. With the high number of competitors, profitability has decreased considerably in addition to the current economic state. Thus, it is only the firms that hold top funds and resources reserves that are likely to survive in the instance that this situation is continuous. In this case, it is rather apparent that the rivalry is intense with every company owning a piece in the market that is not very profitable as most would anticipate.

SWOT Analysis

Strengths

The real estate industry in BC is associated with the highest growth rate when compared to other companies. The booming of the industry is mainly influenced by technological growth, globalization which has facilitated the increased inflow of people and modernization. The use of technology, a positive reputation and resources are leading industry’s strength. In that, the industry is characterized by adequate resources in general that sustains its projects over time. The investment that is required in the sector is high, and it is only dominated by the firms that are well equipped regarding funds and resources ranging from the skilled workforce, reliable supplies, and effective management. Technology growth has provided the industry with good infrastructure that in turn supports the development of the industry in general (Blazek, 2013). With the ongoing evolutions, the industry can utilize such strengths in building a more profitable enterprise. Also, the ability to adapt to market and economic changes is an additional strength of the industry. The consistency of the industry well illustrates the aspect in the last few years where despite the financial crisis the sector has not withheld its operations. With the ability to mitigate changes then the productivity of the industry is not affected which is essential in preserving its relevance and profitability.

Weaknesses

Even though the real estate industry represents the fastest growing and important industry today, it is facing some challenges that threaten its wellness and growth. First, the focus of the developers is too narrow as they only focus on housing construction and development. In this, context the market is thin, and the situation even becomes worse due to the presence of a high competitors number in general (Proctor, 2016). The industry needs to be broad and target another different project that will seek to transform the state, in general, leading to developments. In addition, there is low awareness of the value of this industry to the target consumers. Due to the intensifying demand for real estate services the operating companies are driven by the assumption that the sector is well known in the market. However, the norm is inaccurate given that most individuals tend to distance themselves from the services on the ground that the products are expensive and they would not afford. Thus, it is clear that the industry has not invested adequately in creating awareness as well as familiarity with the real estate value and the benefits that the consumers are likely to achieve. Resources scarcity also represent a significant weakness of the industry given that most of the firms are pushed out of business due to the lack of adequate financing.

Opportunities

The ability to diversify into related fields is a significant opportunity. In that, the involved firms have the opportunity to expand into other different areas and explore them to acquire a substantial share. The market in BC is a developing one which means that it has not been exploited fully and it has some viable opportunities that will strategically position the industry. In addition, technology offers a possible chance of the industry’s development in general. Amidst the growing techniques that are likely to be used in the quest for increasing the productivity rate (Proctor, 2016). In that, the utilization of technology offers individuals the opportunity to identify viable markets and new trends that will, in turn, result in development (Blazek, 2013). In addition, these are essential in improving the marketing abilities of the industry in general. In addition, product development is an additional opportunity where the companies are needed to focus on the use of innovation to come up with innovated and well-developed products that will generally appeal to the consumers and meet the modernization needs. In other words, this is a form of differentiation of the product that will enable the industry to develop a strategic and sustainable competitive edge.

Threats

Competition is one of the leading danger towards the development of the real estate sector at the moment. The industry is saturated by companies that incorporate new and established firms. Given that BC does not offer an extensive market when compared to other areas the domination of these companies has resulted in reduced profitability as well as market share for those that are involved. The low market share, therefore, means that the industry might not be able to attain any substantial growth in the recent which has thus resulted in the loss of revenue. In addition, the low level of regulation is a significant threat to the industry given that it is accountable for financial damages as well as the loss of professionalism in doing business. There is lack some standardized protocols in the industry and as the market is expanding these threats the future wellness of the sector which might lead to productivity loss (Proctor, 2016). The economic crisis also presents risks to the industry since when the financial gains are not in balanced state individuals tend to prioritize on other things rather than housing. With the increasing cost, the consumers might neglect such needs due to the necessity to save more and invest in businesses. In that, the market might grow into a price-sensitive sector thus forcing the companies to lower their prices. In addition, the entry of some established or accepted brands in the market is likely to lead to increased switching where the customers will be seeking for their services. Such companies have the potential or eroding the industry have they own not only more resources but also the general ability to be innovative which will lure the customers to their side.

Marketing Mix

The real estate industry in BC is more organized than before. The target consumers hold differentiated need thus unique strategies are necessary for success in the sector. Thus with a compelling marketing mix, the industry’s objectives must be achieved

Price

It is essential for constructions or housing developments to be priced appropriately. In the market, today buyers have been subjected to extensive options, and if the rates are unfavorable, this means that the consumers will be lost. Due to the moderate buyers bargaining authority and the lack of substitutes somewhat high prices guide the industry. The switching cost is high, and this forces the customers to acquire the rates based on the firm’s reputation. The norm might appear as favorable, but it is likely to discourage the consumers in the near future by developing prices sensitivity which will, in turn, encourage the domination of other players.

Product

The product in this context refers to the real estate services. While the success of the firms in the industry mainly relies on the ability to cater to the most consumers, the sector should be ready to create a balance. The industry is primarily involved in the provision is retail and collective services depending on the size of the facilities that are to be provided. The convenience of the services and quality has been useful in retaining a significant market share for the consumers in general.

Promotion

The use of useful marketing options has driven the success of the real estate sector in BC. In that, the industry has been focusing on organized housing as well as promotions on online platforms, advertising, and discounted sales. Online marketing is the preferred marketing option on the ground that it is cost effective and can reach more consumers within the shortest time. Online websites and social media have been an excellent platform where the consumers can directly interact with their preferred firms and inquire about their services.

Placement

In attracting the highest number of consumers to the real estate sector, the industry has been focusing on the right placement of its advertisements and services. In that, most companies have selected some of the most useful sites that hold more users to post their publications such as Facebook. Besides the agencies are set within short distances where the customers are located which allows them to get the services and connect with the companies while reviewing their operations.

Ansoff Matrix Analysis

Market Penetration

Market penetration generally entails the trail to increasing market share in a given market either by increased sales or attracting a new set of customers (Wippel, 2013). The real estate industry is dominated by a single product that has no substitute thus the involved firms are involved in the competition to ensure that they get a substantial share. The real estate competition is intense which has forced companies to forge approaches to address the issues for revenue maximization. In penetrating in the market, the involved firms mainly rely on cost differentiation as the entry approach. However, since cost leadership is likely to lead t losses in economic crisis period diversification is an alternative as it requires similar resources and guides to saving.

Market Development

The aspect of market development involves establishing a new set of buyers for the products (Wippel, 2013). In that, the industry has been targeting middle and upper-class individuals since they have adequate income that enables them to afford the services. However, through market development, the sector should develop customized products targeting the low-income individuals. It is estimated that this populace comprises about 40 percent of the BC populace which will provide a viable market.

Product Development

Product development to the situation where a company that is well established in the market in terms of market share and resources introduces fresh products (Wippel, 2013). The product should be customer centered by adding more value to outdo the contenders. In that, since it is not possible to differentiate products in real estate, it is only through innovation that the companies can upgrade their competitiveness. In that, this is achieved through improved designs and providing other services and discounts.

Diversification

The approach incorporates the development of a new set of products that generally offers complementation to the existing products. As consumers are becoming more sensitive with regard to technology, there is a necessity to innovate the product to fulfill their demands (Blazek, 2013). Even though such products demand higher prices, there is a target set for such products.

Balanced Scorecard

General Objectives

The real estate industry in BC aims at being the most stable industry in dealing with constructions and developments. To achieve the objective it intends to maximize its revenue by owning the most comprehensive market share in general. Thus, through the adoption of technological advances, this will be useful in attracting a new set of consumers. However, with the consistent changes in the market, the adaptability is proving to be a challenge as competition has also intensified.

Financial Objectives

The industry through the existing companies aims at achieving sustainability in terms of financial stability through research and development. The approach will bring about sustainability and standardization in the market. It is anticipated that with an economic crisis the sales will reduce by about 20 percent in the next two years (Tencer, 2018). Thus the industry is focused on stabilizing it's earning in standardizing everything that is likely to be lost.

Consumer Knowledge Perspective

The consumers of the real estate sector are diverse in terms of income and preferences. Thus, the industry is seeking to focus more on innovation which will, in turn, increase its strategic success. The consumer-focused operation is essential for inducing a large market share which will be used for competitive positioning.

Learning Perspectives

Learning perspective is an essential aspect that ensured that all the goals are satisfied. The real estate suffers from the lack of a large skilled workforce with most companies relying on manual labor from cheap laborers. There is a necessity to provide adequate training to the staffs which will ensure that they offer the best towards the projects. The approach leads to quality and effectiveness in general.

Recommendations

It is without a doubt that the real estate industry is one of the well-established sectors across the globe an aspect that is well reflected in BC. It is apparent that the success of the sector is mainly linked to technological advancement, globalization, modernization, political, economic stability and income increase. It is proposed that for the industry to retain its competitiveness and success in the long term, then it should thus focus on the use of technology. Technology has proven its potential, and ability to catalyze development across different industries and the real estate has not been exempted. In this context, the use of technology is useful in increasing efficiency in general. In that technology can best be utilized in reporting as well as keeping records. Technology provides the opportunities for individuals to advance and acquire new skills that seek to guard the profitability of the company. It is through the use of technology that innovation can be embraced leading to efficiency and productivity.

In addition, there is a need for the industry to invest in research and development. R&D has proven to be a practical approach for the stability of different sectors across the globe. Thus the industry should spend as the means of establishing the needs of the consumers as well as seeking to develop different strategies to meet the demands. The market is generally associated with general changes that affect the adaptability of the involved firms. Due to modernization and technology advancement, the needs of the consumers are changing so often that the companies are required to keep up with the changes. With the need for more resources, the ability of any firm to survive in the market is generally determined by its ability to cope with changes. In that, a company can never be successful in the market if it is unable to meet the needs of the consumers. The satisfaction of the consumers leads to the development of a positive reputation which consequently attracts a new set of customers while retaining the existing ones. Therefore R&D will be useful in enabling the company to provide more quality services to the customers. In addition, this will increase the adaptability of the company.

Social media marketing has proven to be one of the most effective strategies for promoting operations in the modern society. Due to the development of technology and internet access millions of people are currently using social media. Thus, this is a potential platform where companies can market their businesses (Blazek, 2013). It is worth noting that unlike the use of online advertisement marketing is cheap and support the aim of the industry to minimize the operating expenses. In this context, it is rather evident that online marketing will allow the companies to reach more consumers within the shortest time. In addition, the companies have the opportunities to interact with their consumers at ease which will enhance customer relationship. The platforms are beneficial since the companies will get to learn about the needs of the customers through their feedbacks. It is also through the responses that the companies can focus on addressing their weaknesses.

More so, awareness and familiarity campaigns interventions are also recommended. Based on the market analysis above, it was determined that most of the consumers in the market are not aware of the value that the real estate industry offers. Most of the consumers hold the assumption that the firms price their products highly which discourages them from buying. Thus through the programs, such assumptions will be eliminated which will enable the consumers to seek to the development services. The industry should diversify its product by targeting a new set of consumers. In that, currently, the industry only focuses on the upper and middle-class individuals. Thus by customizing the services, the low-income earners will join the market as they provide the greatest share as per the current. The combination of this strategies will competitively position the industry thus increasing its earning.

The Prospects for the Future Real Estate Market

Prospects for the real estate industry in BC Canada is very captivating. The future of the industry is excellent given that the highest growth characterizes the industry. Due to the stability of the economy, more and more individuals have begun to recognize the worth of the sector. Modernization is consistently allowing individuals to enjoy the significant benefits that result from real estate services (King, 2018). Thus as technology continues to advance, it has been established that the future of the real estate sector will be more promising. In that, the involved firms will be able to manage the movement of stock, maintain constant communication with the suppliers and consumers as products enhancement. In general, it is rather evident that technology leads to the advancement of the industry (Mitham, 2017). As the consumers are getting adequate awareness of the market in general then they can get to understand the operation of the market then the market will continue to expand.

The market has not be exploited fully, and the future will be more profitable as the companies get to understand the aspects of the thriving market. It is without a doubt that as the market continues to expand so will other investors get into the market thus intensifying the competition on the market. The higher the level of competition the lower the revenue that the firms will be getting from the market (King, 2018). However, a balance will be created on the ground that the companies will be able to expand and explore other markets that have more potential. Also, with the rising cost of the acquisition of resources, it is rather clear that new companies will not survive in the market which will lower the competition rate. The market is only more promising for the companies with adequate sources and funds to support their operations. With the investment in research and development, the companies will be developing.

BC represents one of the most preferred locations for residential and business focus in Canada today. This is how the region has managed to become the favorite investment destination for most individuals (Laanela, 2016). As the population in this region continues to increase so is the demand for modernized housing. The real estate sector will continue to harvest more resources in this market. In addition, the economic stability of the region is a source of hope for the future of the industry. As individuals continue to achieve financial balance so makes their demand for suitable housing. Due to the political and economic stability, it is anticipated that the industry is likely to produce a growth rate of about 20 percent in the next three years. The growth offers more opportunities for the operating companies in general.

References

Blazek, M. (2013). The Impact of Technology on real estate. Greater Chattanooga Association of Realtors. Retrieved from: http://www.gcar.net/news/entry/the-impact-of-technology-on-real-estate

Ebner, D. (2018). B.C.'s new measures aim to temper rising real estate prices. The globe and Mail Inc. Retrieved from: https://www.theglobeandmail.com/news/british-columbia/bc-budget-treading-new-ground-in-hopes-of-cooling-housing-prices/article38045867/

Gill, A. M., & Williams, P. W. (2011). Rethinking resort growth: Understanding evolving governance strategies in Whistler, British Columbia. Journal of Sustainable Tourism, 19(4-5), 629-648.

King, R. (2018). Canadian real estate market outlook 2018. Retrieved From: http://www.moneysense.ca/spend/real-estate/canadian-real-estate-market-outlook-2018/

Laanela, M. (2016). Is Vancouver's real estate market really in free fall? CBS News. Retrieved from: http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-1.3746472

Marchak, P. (2011). Green Gold: The Forest Industry in British Columbia. UBC Press.

Mitham, P. (2017). Tight real estate supply discouraging upward market movement. BIV. Retrieved from: https://biv.com/article/2017/08/tight-real-estate-supply-discouraging-upward-marke

Proctor, J. (2016). Is it time for a crackdown on B.C.'s real estate industry? CBC News. Retrieved From: http://www.cbc.ca/news/canada/british-columbia/real-estate-final-report-vancouver-1.3646493

St-Hilaire, F., Ragan, C. T. S., Leonard, J., & Institute for Research on Public Policy. (2007). A Canadian priorities agenda: Policy choices to improve economic and social well-being. Montreal: Institute for Research on Public Policy = l'Institut de recherche en politiques publiques.

Tencer, D. (2018). Canadian Housing Forecast Revised Down After Sales Hit 5-Year Low. Huffington Post. Retrieved from: https://www.huffingtonpost.ca/2018/03/15/canada-housing-forecast-crea_a_23386637/

Wippel, S. (2013). Regionalizing Oman: Political, economic and social dynamics. Dordrecht: Springer Science+Business Media.

Wisemean, N. (2011). In Search of Canadian Political Culture. UBC Press.

                                                  ENGSTROM                

                        In the past years, Engstrom Auto Mirror plan adopted the use of technology in production. The change was not easy as the organization suffered several problems such as long delays and loose of customers. The then manager could not find the solution for the situation, and so he resigned. A new manager Ron bent was hired to bring an improvement to the organization productivity.

                   The new manager Ron bent had a strong belief in worker incentive programs and he, therefore, wanted to introduce it at Engstrom. According to Beer and Collins (2008) Bent had strong feelings about group incentive plans and suggested that a Scanlon plan was the best for Egstrom given the challenges it had faced before. Scanlon plan states that workers will be responsive to the new ideas because they feel like part of the company extensive program and there is good communication network in the organization (Beer and Collins 2008).

               After the adoption of the Scanlon plan conflicts in the plan eased as most employees had accepted the plan. With the proposal, higher profits, quality products, and employees’ good financial records were achieved. This did not stay long as workers started complaining of distrust in bonus calculation and the question of fairness (Beer and Collins 2008). The workers^’ morale decreased, the sales figure depressed, and poor communication between the workers and management. When Joe joined the managerial team, it was evident that workers were dissatisfied   and when he reviewed the reports and talked to the workers, he suspected stealing had been going on (Beer and Collins 2008).

According to the case study, it is evident that the Engstrom auto mirror plant has organizational problems such as low productivity and poor quality goods which result in its downfall. Despite Ron Bent, the manager, urgent need to make changes, he does not have a solution to these problems.

Beer, M. Collin, E. (2008) Egstrom Auto Mirror Plant: Motivation in Good and Bad Times.Havard Business School.

Professional Development Program Proposal

Executive summary

Some factors are quite essential in improving the performance of Wells Fargo Company. These factors comprise of Emotional intelligence and motivation. Other factors include emotional knowledge as well as social skills and decision making. Building active teams and establishing an effective reward system are some of the other factors that the company needs to consider.

Emotional intelligence is referred to as building blocks that boost motivation. This element should, therefore, be incorporated in the company’s management and human resources. It is essential to improve the quality of work for the entire labor force and the overall management. Having a motivated workforce in the company is necessary for all organizations. Wells Fargo Company should, therefore, look into ways through which they can instill these qualities in their human resources. Also, the company should also focus on recruiting employees who pose these qualities. The traits in a subject comprise of self-perception, leadership, self -actualization, self-regard and emotional self-awareness.

Emotional intelligence, social skills, and decision-making factor are essential in management. The managers, therefore, have to develop these social skills in sensitive information as this will influence their decision-making process. Moreover, it is essential for them to enhance these skills to be able to impact the employees within the organization positively. The company should, therefore, strive to build management that upholds these qualities.

For the company to attain a good performance, it is vital that it develops active teams. The organization should thus seek to build effective teams. All active groups should be made up of suitable, trustworthy leaders as well as professional team members. All of these members ought to have a different set of expertise which when integrated, they will form a solid group. Having balanced responsibilities, efficient communication, mutual teamwork and individual improvement will help in building a competent team within the organization.

The Wells Fargo company should also consider coming up with a reliable and efficient rewarding strategy. This rewarding system will of the essence of the company’s improvement as it will assist in motivating the workforce. In return, this will increase the performance of the employees and thus contribute to the overall organization improvement. Some of the primary rewarding system that the company ought to execute include, use of stock and financial rewards. Stock rewards are the most appropriate system to use in the company’s management while financial rewards will be most effective when used for employees. Basing on the organization's policies and financial capacity, Wells Fargo should structure its rewarding system.

Motivation                                                                                                                          Enthusiastic, emotional building elements are the primary factors responsible for improving the administration’s ability to upgrade the performance of its representatives and also to enhance job satisfaction. The most significant aspects that help to boost employees’ performance and satisfaction include self-respect, passionate mindfulness, and self-realization. All of these enthusiastic elements are essential to the administration, to employees and the organization in general (Waller, 2008). Positive reinforcement is one of the motivation tools which is used to reward employees for good performance. This tool is majorly utilized when an individual excellently performs beyond the company’s expectation. The management can also use this tool when roles are allocated to a team of workers. The administration uses this tool to seek to promote competition amongst team members. For instance, giving employees bonuses for completion of certain roles in the workplace. On the contrary, Negative reinforce motivation tool should be used in the company. This negative reinforcement will involve giving out penalties for not doing their tasks well. The administration can use this tool when workers perform poorly in their day to day tasks. They can also use this motivation tool whenever employees are reluctant to undertake compulsory roles in the job place. Negative reinforcement can also be utilized when workers break the organization’s policies and procedures. A good example is when workers are penalized for reporting late to work (Carson et al, 2016).

Social kills                                                                                                                                  Social skills in emotional intelligence refer to skills that are needed to handle and even influence worker’s emotions efficiently. Therefore, the main ideas of sensitive information could be utilized to improve social skills of the administration. These concepts could also be used to enhance the efficacy of the decision-making process of the management. These skills and concepts are quite significant for the control, the overall company and even for workers as it helps in boosting the performance. Some of the necessary social skills needed in Wells Fargo include persuasion and influencing capabilities, communication, rapport, conflict resolution and teamwork skillfulness. Having leaders who have persuasion and influencing skills will be essential for the company in entirety as it will get things done. The administration may use this skill in their management to persuade directors to efficiently undertake investments and other plans that may benefit the company. Communication, on the other hand, is a crucial element in any management when passing down information to workers. It is, therefore, essential for the administration in Wells Fargo to efficiently communicate to their workers. This will help employees to perform well as they will get the correct information passed onto them on a timely basis thus avoiding mixing up issues when carrying out their daily duties. Additionally, the management ought to develop rapport skills (Carson et al, 2016). This is essential since the administration is expected to create a good rapport with strong bonds and relations with all their employees. This will ensure high performance in the company. Conflicts in a workplace are something that occurs in any organization. Therefore, the management is also required to build up their conflict resolution skills. This will help the company to resolve any issues within the company that may result in a conflict that may lead to poor performance in the company. Having a team that is focused on meeting the goals of the company is quite essential for any organization. Team working skills in the organization will, therefore, enhance the management to work with each other and with their employees efficiently. Team working is thus essential as it will boost the performance of the labor force and control in the organization.

Effective teams                                                                                                                                       It is not easy to establish a competent team in any company. This is because there are so many aspects that need to be put in place.  It is for this reason that the company should consider integrating all of these aspects together to come up with a compelling team. It is therefore vital that the company establishes a clear objective for the team. These objectives must be mutually shared across all team members and the team leaders. Moreover, the entire team must also know these objectives. They ought to have ideas as to how they can positively contribute towards attaining their goals as a team. Suitable leadership aspect is quite crucial for the team’s performance. Leaders of the group must, therefore, possess leadership qualities that build confidence in them and most especially in the entire team (Jaques, 2017). Team members must be able to feel that they are being led by competent leaders who are capable of performing their obligations. These leaders must also be trustworthy hence allowing all team members to have confidence in the kind of leadership offered by their team leaders. Teams’ effectiveness is also highly dependent on the balancing of responsibilities. Every team member has a unique set of skills that allows them to perform better in given tasks as compared to other team members. Just like in any other firm, communication is key to having an effective team. Communication, therefore, should be productive and effective in all ranks within the organization. Communication ought to be clear especially when making tasks allocation and meetings plan productive. Shared collaboration and personal growth are also essential aspects of building effective teams. It is important to note that team members should not only grow as a team, but rather they should also grow as individuals. This increases the strength and success of the team as individuals and the individuals and the entire team is motivated and growing. Wells Fargo should, therefore, put strategies in place so that these traits are enhanced in every team within the organization (Carson et al, 2016). The management should also choose team leaders who can lead effectively. Hence they will be able to identify the strengths of their team and even work extremely hard to make the team stronger. Diversification of team members’ will help in improving the performance of both the individual as well as the team.

Reward system                                                                                                                                an operational reward system in Wells Fargo will help in motivating the team members and in return, it will promote employees’ and organization’s effectiveness. Having a motivated labor force is essential for any firm.  It is important that the company incorporates both the negative and positive reinforcement. However, a firm should pay more attention to positive reinforcement as it does not make workers feel like they are being coaxed to perform (Howard et al, 2016). Instead, this reinforcement makes workers feel appreciated and valued in the organization. The reward system should also focus on both the intrinsic and the extrinsic rewards. Most of the organizations prefer using the extrinsic rewards as they are easy to execute and they cut across different duties, and employees’ skills. The most effective and fundamental reward systems in Wells Fargo are the end of year bonus rewards as well as the gold star systems. The company often uses these two systems in rewarding their employees, and at times they may combine the two based on their financial abilities. However, rules should be put in place to govern what occurrences require the employees to be awarded and also what measure is used to consider an excellent performance. It is therefore crucial that the company invests much in this rewarding system basing on the critical performance indices as it will significantly contribute towards motivation of employees and ultimately resulting in improved performance of the entire company.

References

Waller, A. D. (2008). Perceptions of emotional intelligence preparation and industry expectations for utah state university MBA graduates. Utah State University.

Carson, K. D., Carson, P. P., & Birkenmeier, B. J. (2016). Measuring emotional intelligence:             Development and validation of an instrument. Journal of Behavioral and applied   Management , 2 (1). University of Louisiana at Lafayette.                                                                                     Howard, L. W., Turban, D. B., & Hurley, S. K. (2016). Cooperating teams and competing reward strategies: Incentives for team performance and firm productivity. Journal of Behavioral and Applied Management , 3 (3). Middle Tennesee State University.                                         Jaques, E. (2017). Requisite organization: A total system for effective managerial organization             and managerial leadership for the 21st century . Routledge.