INDUSTRIAL WORK MEASUREMENT (ERGONOMICS)

Abstract

Lighting, ventilation and noise in work environment affect the productivity of the employees. The science of ergonomics simplifies lifestyle at work in order to improve the efficiency of the employees. Various physical elements of a business working environment has both negative and positive impacts on the comfort, job contentment, health and safety, concentration, and the morale of individuals within it. Work layout, furniture, radiation, lighting, ventilation, equipment design, space, radiation, noise, quality of air, age, noise, building design are some of the physical elements that should be taken into consideration in a working environment. Even though it may sound not important working in dim or overbright light reduces productivity as it strains the employees. Studies have found that low levels of lights, can even cause depression in employees, which is severe.

Noise could also once again be thought of a simple distraction, but can cause defects such as irreversible ear damage. If it impairs communication between employers in the work place noises like high volume alarms could be very dangerous, as miscommunication led to fatal accidents.

Ventilation is one another important aspect. Without adequate ventilation employees are exposed to harmful fumes and dust. This could result in diseases such as cystic fibrosis, which are very severe and patients end up being in a lung transplant list. Ignoring the minute workplace safety rules ends up being disastrous full for their employees. As an example, there has been a lawsuit against a multinational company as the employees were exposed to asbestos without proper ventilation. The minute details can never be ignored. The employees themselves have to make sure that the workplace environment meets up to the standard. If they find even minute details, they have to report it to the supervisor immediately for further actions to be taken. Workers’ union originally founded for reducing long hours of work and for wage inequalities could help employees in their path to justice at workplace environment. Implementing the following controls can control the risk associated with each hazard.

Redesigning the infrastructure to improve the lighting is paramount to any working environment. Soundproof work environments or similar strategies to improve the worker’s quality of environment will improve the productivity. Harmful gases and fumes has to be identified, their risk factors, methods to decrease the harm if exposed. An example of lack of this method was well depicted in Bhopal tragedy, wherein the manufacturing unit harmful gases were released to environment by accident and people were unaware of how to cope with the situation. Even medical knowledge lacked in the situation resulting in numerous fatalities. These scenarios should not be repeated if we have adequate knowledge and methodologies in handling even the minute problem at the work place.

How ergonomic are lighting, ventilation, and noise in work environment? Do they really impact the productivity of an employee?

Ergonomics refers to an applied science which is basically concerned with the designing and arranging of various things that individuals utilizes so that both of them can interact most safely and efficiently. In other words, it is the qualities or parts of something design, which makes them easy to use in their environment. This then implies that workers’ morale is something which is extensively impacted either negatively or positively in ways which are ultimately influenced by the workplace environment (Majekodunmi 2). This then suggest that employees’ working environment typically plays a crucial role in enhancing the productivity and performance of workers. Currently, a large percentage of industries have been noted to be having unsafe working environment, hence making them to be unhealthy too.

Ergonomic = comfort

A working environment with unsafe health facilities, for instance, poorly ventilated design workstations, unsuitable furniture, excessive noise, poor ventilations, poor supervisor support, improper lighting, the absence of personal protective gears, poor communication, poor emergency safety measure, and poor working spaces has the potential of adversely affecting the productivity of workers (Anil et al. 1). Conversely, in such an environment, health employees end up being exposed to occupation ailments such as deafness, heart diseases, suffocation, and ergonomic disorders. Thus, the performance and productivity of health workers will diminish because of the poorly planned working environment since this ultimately impacts their morale. Likewise, this may result to low job satisfaction and poor motivation hence becoming a challenge for the management authority to offer safe working environment for employees to ensure efficiency, good performance, better health status, and improved productivity.

Nevertheless, the relationship which exists between work, working place environment, and health workers is paramount and hence making it to be an integral part of the work they do. This then suggest that the management effort will entail ensuring that an active work environment is focused on the infrastructure of the working environment and on workers’ personal motivation (Carlo et al. 11).

Does lighting really matter in a work place?

Lighting as well as other factors such as ergonomic factors has been noted to induce profound influence on the worker’s health and productivity. Ambient features in a business working environment, for example, temperature, lighting, free air movement, the existence of windows, and so on, implies that these physical elements ultimately influences employees’ job satisfaction, behaviours, attitudes, productivity, and performance. Day-lighting, the illumination of working spaces by natural light so as to provide efficient internal lighting is one of the new watchwords in office design (Anil et al. 2).

Additionally, working in an overbright or dim environment can lead to irritability, headaches and eyestrain hence reducing productivity inevitably. Low levels of office lighting can result to depression, which to some individuals may be severe. This suggest that a working environment which is poorly lighted has the potential of reducing employees’ performance and productivity for those who are forced to work associated with reading may have severe problems with vision (Majekodunmi 5). This may be the cause of eyestrain or fatigue. Although to some workers, more light may be advantageous is assisting them overcome their duties. Despite that, to some, particularly those working in front of computers, excessive lighting systems can make them strain viewing the characters on the screen.

                                    How ergonomic are Ventilation in a work place?

Ventilation is another working element which has a profound impact on the quality of air which workers breathes. With improper ventilation, it implies that such a working environment with poor air quality will induce disastrous effects on the health of workers, especially causing fatigue, headaches, and other respiratory problems, which in return reduces their performance and productivity (Al-Omari & Okasheh 3).  Cleanliness, ventilation, and temperature are the main factors which improve or hinder the quality of air in any working environment. For instance, relatively high temperatures make employees’ efficiency to decrease because of lethargy and tiredness. Lower temperature levels reduce workers’ efficiency because of cooler body heat which results to shivering. Low humidity levels in a working environment have a debilitating impact on employees’ ability to swallow and breathe without discomfort (Anil et al. 2).

On the other hand, this implies that indoor contamination levels resulting from pollutants such as inorganic materials, asbestos, organics, non-ionizing radiations, radon, dust, odours, and so on results to critical discomfort and unwillingness to perform any task. This leads to reduced employee’ morale hence resulting to low job performance and productivity.

How ergonomic are noise in a work place?

Noise is another element of the working environment which has both the negative and positive influence on workers’ productivity. Excessive noise emanating from peoples’ conversations, tools, and other equipment have the potential of preventing workers from concentrating on their work, therefore, reducing their work output. Despite that, it should be noted that people cannot be in the position of achieving their goals in a quiet environment. The reason for that is because to some extent sound generates a health background which motivates workers to execute their tasks effectively. Generally, noise can increase the morale of workers whilst doing their various tasks either negatively or positively (Majekodunmi 2).

Conversely, in case employees working environment is supplied which moderated background sound from certain kind of instrumental music, such a sound will make a worker to be more relaxed in tackling a certain problem arising from a customer who is impatient. Contrary to that, when employees are subjected to a working environment with background sound, which is relatively hard, their communication with customers and amongst themselves will be hindered. This means that disastrous noise in any business organization will be another leading cause of distraction hence resulting to increased job related stress, serious inaccuracies, and decreased productivity. This will in return make note only employees to be contented with their work but also customers to loss trust with such an organization (Anil et al. 2).

What work environment factors should be assessed?

Various environmental factors addressed above should also be related to the relationship which exists between workers, the physical environment, and the tools and equipment that they use while in their various workplaces. As such, by making use of the ergonomic principles in designing, modifying, and maintaining working environments is beneficial in enhancing employing safety both in the short-run and long-run (Majekodunmi 5). Therefore, in evaluating employees’ working environment, it is important to take into consideration to human characteristics, for instance, sex, age, physical stature, experience, and so on. Equally, the manner in which all these characteristics matches with their physical environment should be evaluated so as to make them fit for any task a person can be assigned to.

Moreover, when a person is working in a situation which suits his or her mental and physical abilities, the right fit between him or her and the work task is accomplished. Therefore, it is important to assess the appropriate design of their working environment so as to ensure that it has accommodated a broad category of human traits. Lastly, employees’ working environment should be set in a way that satisfies both their mental and physical requirements. Necessary adjustments to workplaces, in terms of noise reduction, ventilation, and lighting ought to be assessed for the safety and comfort of the workers. The reason for that is because a person has the right to work, learn, and achieve their goals without any adverse health consequences.

Who is responsible for assessing the work environment?

A working environment which is unsafe ultimately affects positively or negatively, the health and safety of the workers regardless of their job status. This then implies that it is the responsibility of each to be mindful of their health and safety in any working environment (Leblebici 10). They should be ready and willing to document any discomfort, pain, illness or injury that they believe results from their working environment.

After recording such information, it is important for them to forward it to their management authority as soon as possible. The reason for that is to enable the concerned authority to take correct or necessary steps which will ensure that their workers are not subjected to any health and safety risks.

It is also the responsibility of the industrial social worker to ensure that they have collaborated with the management authority of any business in ensuring that they have created a working environment which attracts, retains, and motivates its workers. This should be done through responding to their complaints, a rising a result of poor working environment (Anil et al. 3).

HOW TO CONTROL THE PROBLEMS ADRESSED

It is the responsibility of the management authority of any business organization to ensure that provided proper lighting systems in their working places through redesigning their infrastructure. This will enable them to have proper lighting for the comfort and enhance safety of their employees (Al-Omari & Okasheh 3). 

Noise is something which much distractive to any employee performing his or her duty. Therefore, is essential to ensure that it has been controlled to desirable limits through limiting exposure to it as well as using devices such as earmuffs or headphones. The importance of this is to ensure that employees’ ears are protected from any kind of irreversible damages.   

Proper ventilation makes employees to enjoy working in a well aerated environment. As a result of that, it is important for the concerned authority to ensure that they have installed proper ventilation devices so as to guarantee the safety of its workers from ailments such as cystic fibrosis. Similarly, in case poisonous fumes are used, it is essential to apply protective techniques when employees are to be exposed to them

Lastly, the management authority should ensure that they have educated their workers so as to make them aware of the proper medical treatment to administer as well as availing required equipment to use during emergencies, for instance, exposure to neurotoxic gases. 

NEW METHODS TO MANAGE LIGHTING, NOISE, AND VENTILLATION

With the advancement of modern technology as well as the need for reducing operating expenses, industrial social workers and the management authority should intervene through ensuring that cost reduction doesn’t adversely affect the health and safety of workers. For example, workspace decisions ought to be designed in a manner that creates investment in workers’ quality of life (Majekodunmi 6).

The physical working environment ought to be designed in a manner that it has the ability of improving the health of employees regardless of their job status. This should come in the form of quality of open office workspace, proper lights with energy saving lighting systems with moderated temperature, ergonomic furniture, and air conditioning systems, noise protective gears like earmuffs, and so on as to improve the comfort of the workers while at work.

It is recommended that the management authority and all workers should also agitate this through participating in problem solving, monitoring, and information sharing as well as fostering routine communication. This is important in making their working environment a spontaneous, social, and productive (Carlo et al. 2).

Work cited

 Majekodunmi, E. A. THE INFLUENCE OF WORKPLACE ENVIRONMENT ON WORKERS’ WELFARE, PERFORMANCE AND PRODUCTIVITY.  University of Ibadan, 2012.

Anil P. S, Shirsath M, Nasik, M.J & Nashik. The Factors Affecting Employee Work Environment & It’s Relation with Employee Productivity. International Journal of Science and Research (IJSR), 2014.

Carlo B. C, Malabanan E. S, Anne J. R. R, Sarapat, H. A & Buluran, R. N. EFFECTS OF WORK ENVIRONMENT TO THE HEALTH AND PRODUCTIVITY OF

THE WORKERS OF IM DIGITAL PHILIPPINES, INC. LPU-Laguna Journal of Engineering and Computer Studies, 2015.

 Al-Omari K & Okasheh H. The Influence of Work Environment on Job Performance: A Case Study of Engineering Company in Jordan. Department of Architecture, University of Jordan, Amman, 2017.

Leblebici, D. IMPACT OF WORKPLACE QUALITY ON EMPLOYEE’S PRODUCTIVITY:

CASE STUDY OF A BANK IN TURKEY. Okan University, Turkey, 2012.

Service operation

The principles of Agile Manufacturing

Agile manufacturing is a strategy used by organizations in creating competitive advantage and maintaining a competitive edge in the market. Organizations that use agile manufacturing produce high quality products that satisfy the needs and wants of the consumers.  Agile organizations focus on product design, information technology, corporate partners and knowledge culture which all play a significant role in producing high quality products and satisfying consumers (Hormoze, 2001, p. 133).  Due to the ever-changing market, the pillars help the organizations adapt to the changes.  The employees’ intellectual power, the product-development teams, goal setting, flexible management and smooth flow of information play a significant role in creating competitive advantage and maintaining a competitive edge (Hormoze, 2001, p. 133).  The principles of Agile manufacturing are as follows;

Customer prosperity

Customer prosperity is an important principle which means that the agile organizations should manufacture products and services of high value. Even though the World class manufacturers  maintains a strong relationship with customer, customer prosperity in agile manufacturing  means that  products and services produced should add value to the consumers (Maskell , 2001, p. 7). In other words, the organization should have a detailed and a thorough understanding of the customers’ needs and wants, and ensure that the products and services satisfy the consumers. Other point to note is that organization should design products that meet the customer’s requirements and this can be done by using Computer Aided Design where customers, corporate partners and suppliers will co-operate in manufacturing products that will meet the customer needs (Maskell, 2001, p. 7).

People and information

 People and information are an integral part since they provide the organization with skills and knowledge in the product manufacturing, customers’ needs and service requirements. In order to meet the customers’ needs, there should a relationship between customers and organization’s people and this will foster customer awareness (Maskell, 2001, p. 8).  There should also be knowledge-based system where organization will derive product information, product upgrades, analysis and other relevant information needed by authorized users. The company’s information system such as internet will allow the customers to place orders, specify their needs and in turn, the organization will access the information and meet the needs (Maskell, 2001, p. 7).

Co-operation

Co-operation in agile manufacturing is an important principle which means that organization should cooperate with other firms to gain skills and knowledge in order to meet the customer’s needs. There are various ever-changing needs in the competitive market and co-operation will provide organization with a great deal of information based on product design, special skills and more (Maskell, 2001, p. 9).  Information technologies such as internet and multi-lingual system connect the company with other firms where they communicate and help each other in meeting the customers’ needs.

Fitness for change

 Change is inevitable in modern markets and agile manufacturing   should be ready for change in order to meet the customers’ needs. When organization is forced to make changes, it should effectively adapt to the changes and quickly recover from the disruption.  Agile organization should also consider reorganizing the structure and the process should require management skills, effective decision making, highly skilled workforce, effective leadership and trust (Maskell, 2001, p. 10).  In making change, agile organization should make a clear vision, mission and goals of the company. 

By comparison, lean and agile manufacturing focus on increasing sustainability and revenue and creating a competitive position in the market. Maskel asserts that for a company to become an agile manufacturing, it should have already existed as a lean manufacturing.  This creates a comparison in that lean manufacturing focus on customer, cost maximization and just-in-time operations to ensure customers’ needs are met. Similarly, agile manufacturing puts customer first and treat them as individual, focus on product, knowledge culture and more in order to meet the needs of customers and maintain the competitive edge.  However, Maskell states that the difference between   lean and agile manufacturing is that the latter performs role that every organization can control but the former moves beyond this and  performs roles that organization cannot control (Maskell, 2001, p. 8). In other words, agile manufacturing   allows the organization to thrive and prosper in the midst of changing environment and unpredictable change.  Unlike lean manufacturing that focus on cost maximization, price flexibility and higher inventory, agile manufacturing  focus on factors such as unpredictable change and for  this reason,  it focus on low volume  but high quality products and specific products that meet  the different customers’ needs.  Agile manufacturing uses a low inventory for modular construction and product customization. To put it clear, agile manufacturing understands the changing customer demands and it quickly and effectively respond to the demand (Richards, 1993, p. 63).

Observational analysis

Retail operation

            On observational analysis, the main activities in retail operations are based on day-to-day functions and the main objective is to maximize profits and this is achieved through offering high quality products and services to the customers. The retail operation has strategies that help maximize profit and these include understanding the customer-this means that this retail operation targets females as it sells women’s clothing. The retail operation has a strong relationship with its customers and it offers personalized offers, special rewards, discounts and more.  On the transformational processes, the high level of competition and unpredictable change forces the retail operation to have an input-transformation in order implement an output model. This means that in order to meet the different needs and wants of consumers, the retail operation brings resources needed in producing quality products to its customers (Richards, 1993, p. 61).  From the observation, the retail operation makes the transformation process by focusing of functional-level- teams and managers create objectives and understand their responsibility. The retail operation also focuses on operational planning-analysis of human resources.  Finally, on adaptive capacities, the retail operation has a business model adaptation that makes the organization become alert and proactive. For example, the observation helps understand that the  retail operation  has multiplexity which means that there is a cross-functional activities  which foster knowledge sharing  and combinative capabilities thereby increasing the adaptive capacity. Second, it has resource redundancy which increases management attention, innovation and experimentation.  Last, it uses loose coupling which minimizes mistakes and increases knowledge assimilation (Richards, 1993, p. 61).

 Agile Manufacturing principles have great applicability in both the activities that I observed and those I didn’t.  In the observable activities, the principles such as enriching the customers are applicable for the retail operation to meet the needs and wants of the customers.  People and information is also applicable in that the retail operation needs to know more on customer awareness, product upgrades as well as specification (Maskell, 2001, p. 7). The principles are also applicable to the activities which I didn’t see. For instance, I cannot tell whether the retail operation   has partnering firms but the principle is applicable for the business to gain special skills needed in the ever-changing market. The principle of fitness for change is also applicable since organization structure need to be changed to fit the ever-changing needs (Maskell, 2001, p. 8).

Reference

 Hormoze M. Amir. (2001).Agile manufacturing: the next logical step. Benchmarking: An International

Journal, Vol. 8 No. 2, pp. 132-143

Maskell B. (2001). Supply Chain Management: An International Journal, Vol. 6 Issue: 1, pp.5-11,

 Richards W. Chester.   (1996) AGILE MANUFCATURING: BEYONG LEAN? Production and Inventory

Management Journal; Second Quarter; 37, 2; Business Premium Collection pg. 60

Veteran Unemployment

Introduction

The rate of veteran unemployment has been declining with time as many military veterans find jobs in governmental organizations and private firms. The decline can be attributed to a commitment by many companies to hire the veterans especially the young ones leaving the military service. The veterans face challenges while trying to fit into the civilian work environment and corporate managers find it hard to retain these employees due to culture change. The first article shows that unemployment is declining as it is easy to hire veteran employees but retaining them becomes a challenge and many leave their first jobs. The second article explores the declining unemployment among veterans and how they are adjusting to the civilian workforce. The third article described the reducing veteran unemployment and how managers should retain these skills in their organizations.

Article 1

The Wall Street Journal article shows how it is easy to hire military veterans but hard to keep them. After business started accepting the call to employ over a million United States veterans, they are left are struggling with the new challenge of retaining them.  The various initiatives by large firms that have assisted in reducing the unemployment level among young veterans by almost 4.7 percent have not helped these on how to operate civilian or private field (Fuhrmans, 2017). Most of the veterans experience challenges when transiting to civilian careers and normally get into jobs with little returns and experience culture clash in the new working environments.   These individuals also struggle in translating their learned military skills into the business world.  The veterans delay before finding meaningful employment and those entering the job market do not stay for long and employers incur high turnover-costs (Fuhrmans, 2017). 

A major reason the given is that some employers do not understand how they can utilize the skills of these veterans despite their desire to hire them.   Even the high-paying jobs can turn off the veterans who feel that their employers are not taking advantage of the skills they possess.  The military career has taught them to fix problems whenever they see it, but in the corporate world, such opportunities are rarely provided.  Some firms have chosen to adjust their strategies for hiring veterans so as to ease their entry especially those entering civilian jobs for the first time. For instance, J.P Morgan Chase & Co has a pilot project – Pathfinder – whose focus is pairing new recruits with veterans that have more experience to offer guidance through areas where support is needed (Fuhrmans, 2017).  PricewaterhouseCoopers LLP program involves coaching using checklists similar to quality control frameworks, which also train personnel manager on challenges veterans encounter and how to handle them.  This system has helped many veterans to retain their jobs in comparison to just about 20 percent that was previously staying one year or more. Mentoring of veterans and having a strong network will help them not only get quality jobs but also keep such jobs (Fuhrmans, 2017).

Article 2

The article highlights the decline in the rate of unemployment among the veterans and how these individuals adjust to the civilian working environment.   The unemployment levels among veterans who have been in services in the era after 9/11 was 5.8 percent by 2015 in comparison to 1.4 percent in the previous year (Strauss, 2017).  Despite the decrease in the rate of unemployment, the veterans face some challenges as they transit from military services to the civilian job market.  The major reasons the veterans have declined or failed to go after some positions while looking for work are disappointments on salaries and benefits granted, and lack of sufficient education or training to do the work.  While this may surprise other job-seekers, the veterans were used to receiving benefits such as housing and adjusting to such expenses may take them some time (Strauss, 2017).

 In addition, other veterans joined the military services with no college degrees and this may cause problems when evaluating job offers where such qualifications are needed.  However, the experience acquired in military service may not be directly equal to job requirements but can offer skills basically attained during college education. The veterans also normally lack the confidence to sell them during a job interview, since such practices are not needed in military services.  In addition, hiring managers lack an understanding of the experience earned by the veteran in the military and how their skills can be transferred to the corporate world (Strauss, 2017). In a survey, 37 percent of participants felt that their military experience was undervalued by the hiring managers which can be attributed to employers' failure use similar criteria to people with college education.   Among those who found work, majority faced few opportunities for advancement; others felt they did less meaningful jobs in comparison to military jobs and others field overqualified for positions offered.  To be positive about the civilian workforce, the jobs they get have to stir their passions and allow them to advance which requires learning how to networking with mentors and peers.  Employers have to learn how veteran experience can be translated into skills necessary in civilian workforce (Strauss, 2017).

Article 3

The article explores the better ways in which veteran employees can be retained in a company.  According to the author, there are many individuals who are living the military every year with the majority of them looking for meaningful work. The unemployment level has declined over time as many veterans find jobs in governmental organizations and corporate firms partly due to initiatives like Veterans Employment Initiatives and Hiring Our Heroes (Watson et al. 2017).  Many corporate employers have accepted the call to reduce veteran unemployment but despite such efforts, almost half of these employees decline their initial post-military positions each year.  In addition, just about 2 out of 10 will stick to such positions for over two years.  The major reasons veterans give for leaving such positions include meaningless work, not having career advancement, few opportunities for professional development and different work culture.   This means that a major cause of unemployment among veterans is leaving such jobs and difficulties employers' face in retaining the veterans.  The veterans are required to dramatically change in terms of habits, practices, expectations, and terminology since they are used to the corporate language, they may appear less competent and managers may find it hard to connect with them (Watson et al. 2017).

In order to retain the veteran employees, they need to have strategies that address their needs for training, growth, and inclusion. The managers should embark on educating the people involved including leaders, managers and even recruiters about the military culture.  By learning the military culture, they are able to anticipate communication and language gaps and then come up with effective means of reaching common ground (Watson et al. 2017).  They will also learn how to design program for integration and on-boarding that are aimed all veterans.  This also involves assisting veterans in building and sustaining connections with others within an organization and looking for ways to connect daily tasks to the general purpose.  The firms need to effectively integrate veteran employees into corporate life, with the major point being a focus on open and honest communication about the existing gap between civilian culture and military culture.  The workplace should not make veterans under transition feel that they are a burden to the organization and managers having false assumptions about such employees (Watson et al. 2017).

Conclusion

 The declining rate of unemployment among veterans can be attributed increased employment by private firms and governmental organizations. Some employees are unable to find job opportunities immediately to after leaving military service because they lack confidence on how to sell their skills as a civilian workforce. The various initiatives established have enabled most of the veterans to find work in the private sector, but almost half of them do not keep such positions. They find that the private sector has a different working environment which makes their transition process difficult and they opt to leave. The veterans feeling of meaningless roles, undervaluation of their skills by employers, lack of opportunities for advancement in career and culture clash are the major reasons for not keeping their positions.  For managers to retain these employees, they should learn how to utilize veterans' skills in their workplace and provide an environment that encourages employees' growth and development. Closing the language and communication gap among between the veterans and employers should be the focus of hiring organization.

References

Fuhrmans, V., (2017). Hiring Veterans Is Easy. Keeping Them Is Hard. Retrieved from: https://www.wsj.com/articles/the-battle-to-keep-veterans-from-quitting-corporate-jobs-1490702401

Strauss, K., (2017). How veterans adjust to the civilian workforce. Retrieved from: https://www.bloomberg.com/diversity-inclusion/blog/veterans-adjust-civilian-workforce/

Watson, K.W., Perry, M., Ripley, B., Chittum, R., (2017). How Your Company Can Better Retain Employees Who Are Veterans. Retrieved from: https://hbr.org/2017/07/how-your-company-can-better-retain-employees-who-are-veterans

Business Convention Analysis

Contract negotiation is common in the business world, which involves giving and taking so that an agreement can be reached (Ward, 2012). In typical negotiations, all the involved parties must compromise on certain issues so that benefits can be obtained in equal measure. However, it is worth noting that not only business negotiations leads to winning since if an agreement cannot be achieved or when one party is required to sacrifice not only its focus but wellness then the offer can be rejected during the negotiation process (Staff, 2017). To begin with, as a sales manager the business offer that has been proposed is a positive one because it mainly seeks to offer the hotel a more strategic positioning in the market but the possess some risks as well as benefits for the company. In order to meet the objective of maximizing the earnings of the company’s shareholders in terms of revenue certain clauses have to be re-negotiated such as complimentary rooms, food and beverages and additional concessions.

Similar to other companies in the hotel industry, the hotel bosses are interested in expanding their market share for greater revenue gains as well as strategically positioning the company competitively. If some clauses are not re-negotiated then the company will not be acquiring any sort of value from the business (Staff, 2017). To begin with, the group needs to acquire quality and unique services that not only meet their expectations but also considers the set budget based value. Therefore for the preservations of the accommodation, food and meeting facilities to be made adhering to these sets then there is a need to reconsider the clauses. The outcome of the negotiation and agreement as it stands currently is not desirable. The company is not willing to give up its objectives but focused on enhancing its services in general.

The clause that the group will be paying for a specific money set for the food and beverages needs to be reexamined. This is because the group should pay for the products based on consumption since the attendance rate might differ. If the attendance is high then the consumption of food and the needed services is also high which means that higher payment is needed. This will subject the hotel at a greater loss since there is no revenue that will be gained and this might, in turn, affect the quality of the offered services and products. This will automatically affect satisfaction and motivation for both of the involved parties. The reasonable value must be created at all times. The company has certain disadvantages that hinder it from taking the deal without making some adjustments to the stated clauses. Operating expenses is the main disadvantage of the hotel that it seeks to lower throughout its operations in order to ensure that the investors are satisfied. However, the issue of focusing on quality cannot be ignored since the group is more interested in it as well as customer satisfaction (Staff, 2017). It is not easy to build good relationships with the consumers if their expectations and needs are not met fully.

Additional concessions are something that should be reexamined. This is because the company is already provided services that are characterized by affordable cost which means that by offering more discounts then losses might be experienced. The hotel industry has been subjected to intense competition in the most recent years which have thus forced companies to adopt different measures to sustain their competitive positioning while growing both their shares in the industry and revenue (Ward, 2012). The hotel is mainly influenced by cost leadership even though it offers quality and premium products and services. This means that it offers the least prices in the market and it cannot, therefore, afford to operate under further discounts. Since running a hotel is expensive and the set cost for commodities is low if the prices are reduced further, this implies that the company will not be generating any revenue. The group needs quality services and the company needs to enhance its revenue gain so that it can support its operations and sustain business even in challenging times (Ward, 2012). The company, in other words, cannot offer further concessions but the services and food provided are guaranteed to be of the utmost quality.

In other words, the offer can be turned down during the negotiation period if the group does not comprise of such things. This is because despite the fact that the company must guard its market it cannot afford to take losses as being competitive is all about being about to generate adequate revenue in the competitive market. However, if the group is will reexamine the clauses to ensure that their needs are met and the company does not incur losses then the hotel will take the deal. The best time to reject the business is during the negotiation since the company will not have signed the contract that highlights expectations from each group.

References

Staff, P. (2017). Use Integrative Negotiation Strategies to Create Value at the Bargaining Table. Retrieved from https://www.pon.harvard.edu/daily/negotiation-skills-daily/find-more-value-at-the-bargaining-table/

Ward, D. (2012). Contract Negotiation Handbook: Getting the Most Out of Commercial Deals. Hoboken [N.J.: John Wiley & Sons.

Strategic Planning at the Chronicle Gazette

• Introduction

The Chronicle Gazette has a customer circulation of about 225,000 as the publishing leader in the United States (Case, 2016). However, despite the fact that the company has been dominating in the mast for the past few years it has been faced by a drastic decrease in customer base and profits. The decrease is mainly attributed to the rapid prevalence of technology particularly the use of internet which offers the most simplified means of gathering information globally. To most, it is rather saddening that the publishing industry is facing the same changes as experienced by the music industry due to online sites such as YouTube, iTunes and so on. The publishing sector in the United States and globally is going through a rather hard period due to decreased revenues (Case, 2016). For the case of Chronicle Gazette, both its subscription rate and advertising gains have decreased rather rapidly. The rationale behind this trend is because most people are currently engaged in the use of the internet as the main means of accessing news details at ease, fast and free thus creating hesitation for them to make payment on the publishing services.

As per the current situation in the industry, the Chronicles Gazette has consistently dealt with a number of difficulties both, within the external and interior environment which affects the sector’s competitive positions similar to all other firms working within the global scale (Case, 2016). In that, the advancement of technology as mainly affected and altered the public’s behavior and the functioning of individuals especially for those that are attached to news following both in relation to the local and international environments. Thus the main objective of this strategic planning report is to explore the different mitigating strategies that the Chronicle Gazette should adopt in the quest of boosting the newspaper circulation rate while increasing its profits in general. This report will focus on analyzing the newspaper sector in the country by offering information regarding the current state and the probable future. Through this, the company’s management will gain some strategic insights that best offers a description of the current position of the publishing industry and where it is expected to be within the next few years and how sustainability can be acquired (Case, 2016). Also, the report will also be presenting differentiated approaches that can be used by the company for enhanced survival in the new technology environment.

2. 0 State of the Newspaper Publishing Industry Today

2.1    Data on Declining Circulation and Revenue

For the longest time now, different opinions and facts regarding the death of the newspaper industry have been on the rise. However, it is the effort made by the involved companies such as The Chronicle Gazette that seeks to move with the changes that have sustained the industry. The company’s subscription rate dropped by 41 percent along the advertisement earning that decreased by 28 percent (Mitchell, Jurkowitz & Guskin, 2013). As stated by the American Newspaper association the movement of newspaper began to get poorer at the commencement of the 21st century and by 2008 more than 22 percent of the market was no more (Mitchell, Jurkowitz & Guskin, 2013). In regard to the gross revenue, the share has continued to decrease since 1997 on the ground that the advertisers are more interested in internet advertisement based on the associated flexibility, convenience, and zero cost. It is evident that while the newspaper advertisement gains have maintained constant decrease from the time the revenue earned from online advertisement has been rising rather steadily and therefore the advancement of technology is accountable for this loss.

2.2 Status of Newspaper Leaders

Based on the 2009 report given by the New York Times despite the fact that the company’s revenue had risen by about 23.8 percent it is evident that the advertisement gains had decreased by about 25 up to 30.2 percent when equated with those of 2008 (Barthel, 2017). The company in mitigating the risks made the choice on creating more revenue from the internet advertisements display and cost per clicks in addition to relying on different digital platforms.

In addition, from the report offered by the CNN 2016, it is evident that media-based earnings and the operating gains have generally decreased (Chen, 2016). The media industry is one of the leading sectors in economic participation and revenue generation has the highest ability to result in an economic crisis. The data also demonstrates that some of the leading Newspaper companies such as Wall Street Journal (WSJ) have been affected severely which has resulted in the diversification of their services into the internet platform in the quest of improving the advertisement and publishing strategies. This strategy has been an effective one in attracting more news readers and subscriptions. In order to differentiate the operations to fit the digital needs in the modern society, the companies mainly focus on the provision of personalized details to lure certain consumer targets (Chen, 2016). This has also been boosted by the constant enhancement of News articles content and reporting strategies to sustain the acquired loyalty while using convenience and quality as the leading values.

Based on the increasing changes, it is rather evident that the decreasing characteristics of newspaper readership are mainly attributed to the shifting target market likings. In that today, individuals are not only looking for the associated cost but also convenience and flexibility of accessing news are also some critical considerations (Chen, 2016). In fact it is worth noting that publications including newspapers are not mainly intended to reach a certain group of people in the society but the objective is to meet the individual’s informatory needs. As demonstrated by the leading newspaper companies it is not only the newspaper industry which has been affected by this changes but also certain industries such as book publishers and music are experiencing the same challenges as people are more focused on chasing convenience (Chen, 2016).

3.0    Why newspapers are facing declining circulations and revenues

3.1    External assessment

The global economic decline and instability resulted in Newspapers prices decline as the revenue for the participating companies was decreasing rather rapidly. This trend can best be demonstrated by the economic crisis that prevalent in 2008 where the advertising gains had decreased with more than 15 percent where compared to the last year (Chen, 2016).

3.1.1    Economic forces

It is without a doubt that economic factors play part in determining the wellness of any business in different sectors globally (Sridhar et al., 2016). Some of the defining factors in the Newspaper industry include decreased revenue, reduced market share and low circulation. The cost of living in the united states similar to most countries across the globe has increased in the recent years which has resulted in people focusing on settling for the most affordable and basic services. With more Medias such as television, radio, internet and so on being the source of information, the readers find it more convenient to depend on the mediums. In addition, the earned income is only enough to cater for more demanding needs such as education and healthcare as the means of mitigating economic uncertainties (Mitchell, Jurkowitz & Guskin, 2013). In addition supply and newspapers demands are some economic factors that are to be considered given that they not only determine the pricing but also the circulation.

3.1.2    Social, cultural, demographic, and environmental forces

Socio-cultural environments have less to do with the changing trends in the industry and in fact socially individuals are still willing to pay for the services (Chen, 2016). However, social based preferences have changed as individuals are more interested in entertaining stories and for the young generation news can best be accessed from online platforms where entertainment is the highest. Based on recent demographic reports the publications are mainly targeted for individuals of over 50 years given that they are linked with more leisure time and higher connections with reading newspapers on daily basis (Driscoll, 2010). In that the demographics can mainly be divided into those that reads the papers to gain political based insights, knowledge, entertainment and leisure (Barthel, 2017). Socio-cultural factors normally affects the content of the papers as well as the constant research of the needed things to increase circulation including layouts

3.1.3    Political, governmental and legal forces

The political environment mainly plays a huge part in regard to the monitoring of newspaper freedom based on the reported details and trading agreements on national basis. In that based on the set policies then it becomes known on the engagement of the companies in the business world. This is because the reports are to be made within the set guidelines as all operations have to be within the legal provisions.

3.1.4    Technological forces

Technological forces are the leading in regard to their effects on the industry due to the prevalence of the internet and different digital Medias. Living in the contemporary or digital era demands from everyone to integrate with the changes (Chen, 2016). Most of the needed information regarding the universe can be acquired practically from the online platforms. This means that people can conveniently assess information at ease for free. The primary source of revenue for the advertising companies is from advertisement which currently has been subjected to changes due to the rise of internet advertisements. Website and online advertisements have become very popular being the major source of information and thus advertisement revenue acquired from such engines is rising rather rapidly (Barthel, 2017). Most advertisers prefer this digital platforms because of their ability to reach more people within the shortest period for free. In addition, these platforms offers the opportunities for customizing the posts in colorful and preferred options thus enhancing the experience of the readers and building a more digital image.

3.1.5    Competitive forces Porter’s model

New market entrants threats in the Newspaper publishing industry is low to average given that the economies of scale is mainly driven by the market leaders (Grünig & Kühn, 2002). This is because some preferred advertisements brand are only found in the well-known newspapers and never in others. Product differentiation is not applicable in this industry given that news cannot be differentiated but can be created as standard. The primary barrier in getting into the industry is the fact that the needed capital is quite high. In addition, the acquired revenue is low and therefore needs well fueled companies in terms of finances and image.

Customer’s bargaining power is currently high because there are different and more sources where information can be acquired from. In addition, this is a common service which means that the same stories can be acquired from other news publishers (Grünig & Kühn, 2002). Customers have the highest power in the context that they have the capability of forcing products prices to be lowered. Since the switching expenses for them are low companies are forced to settle for standard costs and if the information is not characterized by quality or convenience the customers can move to other providers.

Suppliers bargaining power is average to high because they are highly needed in the provision of important inputs such as ink and papers. The supply sector has a few dominant providers and based on their reliability this helps in the creation of rather strong relationships thus making the switching expenses high. Substitute’s threat is higher because there are different platforms where information can be obtained at ease ranging from the online platforms. The involved cost for shifting to another provider is zero and given that the customers can still read the same information from all other platforms makes this aspect a strong one. Rivalry in the industry is particularly high because since the sector is dominated by a few well-established companies based on the involved risks (Grünig & Kühn, 2002). The companies that operate in the industry are well known and utilizes all their resources in acquiring a more strategic positioning.

4.0    Internal assessment

4.1    Organizational processes and structure

Operational procedures within the company are rather well planned and organized. In that, after the information has been gathering the publication process will mainly incorporate the involvement of different structures such as editing, publishing and so on.

4.2    HR capabilities

The Newspaper Publisher is mainly accountable in regard to different operational processes for the publication within the editorial and operational teams. The publisher is mainly involved in the regulation of the running of the publication process by ensuring there are enough funds for smooth operations (Grünig & Kühn, 2002). On the other hand, the editor in regulating the content to be published in addition, to monitoring budgets and spending in most cases both roles are played by the same person. There is also the management that is involved in controlling publishing and editing activities. Photographers and graphic designers are involved in papers designing and the provision of the needed images for different stories. On the other hand, reporters are assigned the role of gathering news for publication (Grünig & Kühn, 2002).

4.3    Financial Position

The revenue levels for all the involved companies are low which has mainly resulted from the availability of information freely and conveniently from the online platforms. Conventionally news was mainly acquired from selected mediums while newspapers were leading but the trend is long gone.

4.4    Marketing/Sales Capabilities

The current marketing trends have risen mainly relying on advertisement and other entertaining and engaging mediums. The sales rate has dropped as well since people are reading the news online. Based on reports it is evident that the advertising gains have decreased drastically and companies are more focused on online advertisements in the quest for boosting their annual gains. The Chronicle Gazette has created an advertisement platform that seeks to restructure the current investment strategies (Grünig & Kühn, 2002). This means that its sales capabilities are high given that it has already established an authoritative consumer base but technology must be adapted to tap the advertising earnings in the sector since this is the only survival strategy and secure a better future.

4.5    Operational Capabilities

The company’s operational capabilities can best be established by an evaluation of the value chain. Since the company has already established a practical positioning in the market with a high customer’s circulation the company can use the loyalty to strategize its positioning. Accounting on the fact that the company has a reliable logistic system it means that the delivery and distribution of papers can be made more timely. In guaranteeing efficient services the company can mainly rely on online and email deliveries while adhering to quality. Since the company does not offer any online news versions IT capability is needed in funding the operations.

4.6    Our Strengths and Weaknesses as a Publisher

4.6.1 Strengths

The company has created an appealing image in the market which has, in turn, generated loyalty. In addition, the created brand offers it’s an advantage as a well-established and funded company. By offering traditional readership this is a form of products differentiation.

4.6.2 Weaknesses

The company is disadvantageous because it has not yet focused on creating an online newspaper version. Limited funds are also another weakness since the investment to the online platform for the set-up and maintenance is expensive.

5.0    Marketing and selling strategy

From the recent activities that the company has engaged in, it has been able to sell its products by conducting sales within the retail and counter stores which has enabled it to become the newspaper leader in the metropolitan region. Most companies are managing their sales and marketing by integrating online services such as New York Times and Wall Street Journals which has helped in increasing the number of subscribers. This is also involved in the provision of rather appealing headlines and pages layouts to attract more customers. In addition, the companies mainly offer rather customized subscriptions for the clients to settle for what they prefer and eliminated the unneeded content. The discounted subscriptions and free access of up to 20 percent for the WSJ readers have also played part in the success a strategy that Chronicle Gazette can adopt (Barthel, 2017). Online versions are also provided on timely basis day and night which furthers the convenience of the news. Also, the companies are focusing on the customization of their online articles to fit within different demographics (Driscoll, 2010). This is, for instance, the New York Times which has a student version that is not only affordable but highly informative. Such differentiation and diversification measures help in attracting more consumers (Driscoll, 2010).

6.0    Steps the Chronicle Gazette Might Take In Order To Deal With the Challenges

6.1    Short-term steps

Based on the current changes being experienced in the publication industry, Chronicle Gazette should start by creating an online website where the online news version can be accessed. This should involve consuming with an Information Technology profession to settle for the most developed systems (Sridhar et al., 2016). This will help in creating a financial plan that will work to ensure that the company works within its budget limits without affecting other operations. In addition, it should lower thee a number of staffs particularly the elderly ones which will also help in decreasing its operating expenses. Also, it should promote a saving and sales approach while creating discounted services which can be achieved by the introduction of free copies.

6.2    Long-term steps   

In the long-term, the company should focus on restructuring the organization and conducting employee’s evaluation to only retain the most qualified. This should also be followed with a focus on the reduction of the operating expenses with about 10 to 30 percent slowly. Also, services diversification can be crucial in saving the business by investing in graphics such as news videos and increased customization on the online platforms. Innovation is key to the company’s growth.

7.0 Conclusion

It is evident that the publishing industry has experienced a number of changes and challenges due to technology advancement in the recent years. This has led to increased revenue decrease for Chronicle Gazette as the advertisers are shifting the services to the online platforms. To get back the lost market and revenue Information technology investment is a necessity which will help in increasing the company’s survival and sustainability.

References

Barthel, M. (2017). Despite subscription surges for largest U.S. newspapers, circulation and revenue fall for industry overall. Retrieved from http://www.pewresearch.org/fact-tank/2017/06/01/circulation-and-revenue-fall-for-newspaper-industry/

Case. (2016). Case study: Strategic Planning at The Chronicle Gazette

Chen, S. (2016). Newspapers Fold as Readers Defect and Economy Sours. CNN. Retrieved From http://edition.cnn.com/2009/US/03/19/newspaper.decline.layoff/index.html

Driscoll, E. (2010). The Demographics of American Newspapers. Retrieved from https://pjmedia.com/eddriscoll/2010/2/27/the-demographics-of-american-newspapers/

Grünig, R., & Kühn, R. (2002). Process-based Strategic Planning. Berlin, Heidelberg: Springer Berlin Heidelberg.

Mitchell, A., Jurkowitz, M. & Guskin, E. (2013). The Newspaper Industry Overall. Retrieved from http://www.journalism.org/2013/08/07/the-newspaper-industry-overall/

Sridhar, S., Germann, F., Kang, C., & Grewal, R. (2016). Relating online, regional, and national advertising to firm value. Journal of Marketing, 80(4), 39-55.

Walden, A. (2015). Who reads what? And where? Retrieved from https://www.forbes.com/sites/alanwalden/2015/08/26/96/#4bfba3ef5938

            How the Availability of Substitutes Affects Business Strategy

In the contemporary society where every company is striving to strategically position itself in the market to harvest maximum gains, substitution threats negatively affect the competitive ability of the involved firms and the ability to being profitable (Rothaermel, 2016). Substitute’s availability is not favorable to profitability in any industry since consumers can opt for the substitutes especially when the prices are lower and the switching expenses are minimal (Rothaermel, 2016). The presence of close substitutes leads to a highly competitive industry and reduced revenue potential for companies in the business. On the other hand, the absence of substitutes leads to an industry becoming less competitive thus raising profit potential for the involved companies.

For instance, the airline industry is characterized by the high availability of substitutes since there are many travel alternatives such as train, bus and so on (Rothaermel, 2016). In this context, the switching cost is low and the substitute’s offers travel services at lowered prices thus making them favorable which is similar in the apparel and restaurant industries.  However, automobile or the gasoline industry is associated with the least number of substitutes because one has to use it unless they own an electric vehicle which is not so many. This means that the demand for gasoline remains high with less competition thus allowing the involved companies to maximize their profits and improve their competitive positioning in the industry. In other words, the switching cost in the category for getting into electric vehicles is quite high which deters the consumers from going for that option. The lack of close substitute enhances a company’s competitive strategy in the contemporary society by increasing its revenue and responsiveness (Rothaermel, 2016).

Reference

Frank T. Rothaermel. (2016). Strategic Management. McGraw Hill education.

LEADERSHIP SKILLS TRAINING

Introduction

Skills in leading generational diversity assist leaders to unite groups of people with different experiences, values and work attitude towards a common goal.  Leading global diversity requires training on various challenges arising from them and how to be flexible in uniting people to turn their differences into gainful experience.  In a constantly changing environment, leaders should acquire skills on how to improve performance through innovation. Innovation will be achieved if leaders are able to effectively manage knowledge and use if for financial gain.

Leading generational diversity

After undergoing through the training program, the participants are expected to demonstrate the ability to:

• Communicate effectively with others
• Build an effective team
• Mentor others in leadership skills
• Delegate various tasks among different people

The training program on this issue should instill the ability to integrate the various generations by embracing radical changes involving recruitment, benefits and creation of a corporate culture that upholds inclusion and respect for every generation into the workforce (American Management Association, n.d).  The set of skills to include in the training program involves the ability to build teamwork, communicate effectively, mentor others and effectively delegate tasks.   Communication helps in conducting sessions for generation information sharing to help individuals work together while educating one another. Working together is only possible where an effective teamwork through and which allows for mentorship (The Center for Leadership Studies, 2013). Delegation of tasks is necessary to cater for the abilities and skills of people across generations.

Leading global diversity

After undertaking the training program, the participants will be able to:

• Tailor a flexible work initiative
• Adapt to varying situations
• Cultivate flexible workplace culture across board
• Develop a policy that promotes inclusivity at the work place

Leading global teams involves solving various challenges arising from different functional backgrounds and countries which may lead to deterioration of communication and distrust due to misunderstanding (Maddux &Galinsky, 2011). The training program should help the participants to acquire the ability to prevent such vicious diversity from happening and helping the diverse team to produce remarkable performance. The participants should have the ability to create collaboration in the diverse teams, so that to reduce any misunderstanding and power struggle and ensure good productivity. These team members must be flexible enough to embrace others. The participants should be able to tailor a flexible work initiative, ability to adapt to varying situations, ability to cultivate a flexible workplace culture and ability to develop a workplace policy that promotes inclusivity.

Leading innovation

After undertaking the training program, the participants should be able to:

• Understand the basics of innovative thinking
• Cultivate an innovative culture
• Develop organizational practices that support innovation
• Develop a formal innovation plan aimed at achieving the set goal

Since innovation is inherently unpredictable it may lead to more less success and more failure. To handle the innovation issues, leaders should be able to use innovation in enhancing competitive advantage while minimizing risks to the present market advantage. They must learn how organizations with systematic innovations should be managed, leading teams through the innovation process and implementation of the innovation process in the organization. The leaders should posses the ability to improve flexibility and adaptability levels and to eliminate ambiguities and variations in the organization (Doss, 2014).  The participants in the training program will acquire the ability to understand the basics of innovative thinking cultivate an innovative culture, develop organizational practices that support innovation and develop a formal innovation plan aimed at achieving the set goal.  Understanding innovation principles involves recognizing the need for innovation and the problem that is to be solved. Cultivating an innovative culture involves analyzing culture assumptions and identifying what part of the culture to support and what should be changed.  Organizational practices should make the innovation process easier and even adjusting to some particular rules (Legrand &Weiss, 2011).   

Leading knowledge

At the end of the training program, the participants should be able to:

• Recognize value of knowledge,
• Develop a strategy of discovering gathering and sharing knowledge
• Use information technology in knowledge management

The training program will impart knowledge management skills to the participants, since these skills are important in leading people to use knowledge for success in the organization.   Knowledge management is important to a firm because it facilitates the ability to make decision, builds organizational learning culture and stimulates a change in culture and hence, innovation (Quast, 2012).  Training is an important aspect of spreading important knowledge and best practice across the whole organization.  The participants in the training program will learn the ability to recognize value of knowledge, develop a strategy of discovering, gathering and sharing knowledge and use information technology in knowledge management.  Recognizing the knowledge value involve ways of exploiting it for financial gain.  Knowledge management strategy requires involving everybody and turning the knowledge into financial gain.  Use of information technology provides tools necessary in gaining and making the most effective use of knowledge (Info Entrepreneurs, n.d).

Conclusion

Leading generational diversity requires leaders to communicate effectively, build teamwork, and mentor others in leadership and delegation of tasks to relevant people. Leading global diversity requires leaders with skills of solving challenges arising and averting risks. Innovations require effective knowledge management so that innovative ideas aimed at achieving the desired goals. 

References

The Center for Leadership Studies,(2013).Leading Generational Diversity. Retrieved from: http://situational.com/leading-generational-diversity/

American Management Association, (n.d).Leading the Four Generations at Work. Retrieved from: https://www.amanet.org/training/articles/leading-the-four-generations-at-work.aspx

Maddux, W., Galinsky,A.D(2011). Multicultural Experiences: Making the World Creative, Innovative...and Flat. Retrieved from: https://knowledge.insead.edu/innovation/entrepreneurship/multicultural-experiences-making-the-world-creative-innovativeand-flat-2555

NVIDIA CORPORATION

Introduction and Company Background Information

NVIDIA Corporation is an American Company that was incorporated in 1988 and it’s headquartered in Santa Clara, California.  The operations of the company focuses on  Graphics Processing Unit ( GPU),PC graphics and artificial intelligence ( AI) and its services to the customers are provided through cloud architectures , mobile and PC (Bloomberg, 2018) . Its operations are done through Tegra Processor and GPU, which are based on a basic architecture.  The processor from the company has resulted to various platforms addressing Automotive, Professional Visualization, Gaming and Data-center markets.  The GPU products from the company have been created with a target on specialized markets such as designers’ GeForce, DGX and Tesla used by AI data scientists and researchers of big data and GRID for users of visual computing (Bloomberg, 2018).

The top competitors of the company include Intel, AMD, Samsung, Dell and NEC Global.  In 2017, was ranked the smartest firm according to a review published by MIT Technology along a listing of other 50 smartest firms.  The firm has been able to leverage its major capabilities in the field of visual computing to address various opportunities arising in the market.  The firm has continued to be a leader especially in Artificial Intelligence Market with closet rival, Google TPU not presenting direct competition (Bloomberg, 2018).  The firm is also working with various automotive partners in the development of a self-driving and robust ecosystem. Its target has been large automotive manufacturers such as Mercedes and Audi and also has an existing partnership established with Tesla.  In addition, the company’s Drive PX2 is the most innovative and advanced GPU that allows deep learning and computation of complex data in autonomous driving field.  It has been transforming the market for autonomous driving and GPU, and this is positioning the firm as a pioneer in this industry (Bloomberg, 2018).  Though it faces stiff competition from firms such as Tesla, its innovative products have contributed to growth in revenue.

Income statement

The revenue for the firm was recognized in cases of an existing persuasive arrangement of sales arrangement, delivery of the product, fixed prices or there is a reasonable assurance of related receivable collection. The revenue for NVIDIA was $ 5.01 B for 2015 and $ 6.91 B for 2016 which shows that the company had a growth in revenue of $ 1.9, and indication of increase in sales.  In 2016, the growth in sales was mostly experienced in its third quarter, where it surpassed estimates by analysts to grow with almost 54 percent year to year (NVIDIA Corporation, 2017). There was also acceleration in the gaming business that produced $ 1.244 B in revenue, an increase from $761M in the same period in 2014.  The cost of sales for the firm was $2.2B in 2015 and $2.84 B in 2016, which shows an increase of the costs by $ 0.64 B. In 2017, the cost of sales was 41.2 percent of total revenue. The gross profit increased by 1.252 from $ 2.811 in 2015 to $ 4.063 in 2016 (NVIDIA Corporation, 2017).

The operating income in 2016 was $1.934 B and in 2015, it was $ 0.75 B, which indicates an increase of $1.187 B.  The gross profit was 58.8 percent of the revenue in 2016. The net income increased from $ 0.614 B in 2015 to $ 1.666 B in 2016, which indicates an increase of $ 1.052 B for the two year period. The income tax expense recognized in 2016 was $ 239 M, whose calculation involved application of 35 percent as the prevailing rate of Federal Statutory Income tax (NVIDIA Corporation, 2017).  The overall comprehensive income for 2016 was less than the net income by $ 12 Million, which made the net income to decrease in the period.  The comprehensive income for the firm in 2016 consisted of net income and loss on other such income which includes Net Unrealized Gain, Net Realized Gain Reclassification Adjustments and Unrealized Gain Net Change. Others involve Cash-flow hedges like Net Unrealized Gain, Net Unrealized Gain and Unrealized Gain Net Change that were all losses.  The overall comprehensive income was $ 1.654 by the end of 2016.

Revenue for the firm increased by 38 percent in 2016, and the gross margin expansion was by 58.8 percent representing 270 basis points. The gaming business for grew significantly in 2016 and racked in $ 4.1 billion and setting a record. The Artificial Intelligence was a major driver for growth of datacenter business, which had been tripling over the years and in the fourth quarter, its contribution to overall revenue was $ 830 million (NVIDIA Corporation, 2017). The automotive business of the firm accounted for 6 percent of total revenue, and appears to have experienced the first growth among the entire segments of the firm - the growth was 52 percent for year 2016 and 85 percent in 2015 (NVIDIA Corporation, 2017).  NVIDIA is also making significant inroad into the market of data center, which is shown by 6 percent revenue contribution by data center for 2016 and 9 percent in 2015. However, some areas have show declining revenue indicating barrier to growth. Professional visualization, with 15 percent of NVIDIA revenue, had declining revenue due to slow expansion of workstation market. Tegra business also appears to be declining as demand for tablets and smartphones reduces (NVIDIA Corporation, 2017).

Balance Sheet

The total current assets in 2016 were $ 8.536 B and $ 6.053 B in 2015. The long-term assets were $1.305 B in 2016 and $1317 B in 2015. The current liabilities were $1.788 B and $ 2.351 B in 2016 and 2015 respectively. The long term-liabilities were $2.260 B and $ 0. 463 Billion in 2016 and 2015 respectively.  The Work Capital for NVIDIA which is the distinction between the overall short-term assets and Current liabilities were $ 2.483 Billion (NVIDIA Corporation, 2017). The working capital of a firm indicates its efficiency or its financial health since it serves as a sign of NVIDIA ability to cater for the current liabilities.  The total equity for NVIDIA’s shareholders comprised of $ 5.762 Billion and $ 4.469 Billion in 2016 and 2015 respectively.  The company held Treasury stocks of $5.039 Billion in 2016 and $4.469 B in 2015.  The firm’s balance sheet considered all the investments that were highly liquid and that could readily be converted into cash  and be able to originally mature after 3 months or less during purchase as being cash equivalents (NVIDIA Corporation, 2017). As per 2016 and 2015 financial year end, the firm’s cash and equivalents amounted to $ 1.77B and $ 596 M respectively. This also comprised the $ 321 M and $ 43M whose investments were done in funds for money market. The firm also maintained a doubtful account receivable’s allowance, for any estimated loss that would result from customer inability to make their pay (NVIDIA Corporation, 2017). 

Cash flow statements 

Cash flow statements indicates how the various changes in income and balance sheet affect’s a company’s cash or cash equivalents and the analysis is broken down into investing , operating and financing activities. NVIDIA net cash flow was $ 1.672 billion and $ 1.175 billion in 2016 and 2015 respectively.  This indicates an increase in net cash flow of over the two year period by $ 0.497 billion.  The depreciation and amortization was $ 0.187 billion and $0.197 in 2016 and 2015 respectively. The total of deferred income taxes in was $ 0.197 billion and $ 0.134 billion in 2016 and 2015 respectively (NVIDIA Corporation, 2017).  There was also debt discount amortization of $ 0.025 billion and $ 0.029 billion in 2016 ND 2015 respectively.   The net cash flow also comprised of adjustments of $0.011 billion and 0.019 billion in 2016 and 2015 respectively.  The NVIDIA net investing activities’ cash flows were $ 0.793 billion and $ 0.4 billion in 2016 and 2017 respectively (NVIDIA Corporation, 2017). The major investing activities that made  up these cash flows includes marketable securities’ sales that stood at $ 1.546 billion and $ 2.012 billion for 2016 and 2015 respectively, marketable securities proceeds of $ 0.969 billion and $ 1.036 billion in 2016 and 2015 respectively, long-term investments and assets sale of $ 0.007 billion and $ 0.007 billion in 2016 and 2015 respectively (NVIDIA Corporation, 2017). In the two year period, the firm purchased marketable securities at $ 3.134 billion and $ 3.477 billion in 2016 and 2015 respectively, and intangible assets, property and equipments of $0.176 billion and $ 0.086 billion in 2016 and 2015 respectively (NVIDIA Corporation, 2017).  All these comprises of the investing activities undertaken by the firm in the 2 year period.  

 The net cash resulting from operating activities was $ 0.291 and $ - 0.677 billion in 2016 and 2015 respectively. The operating activities in this period include notes’ issuance at $1.988 billion in 2016, common stock repurchases at $ 0.739 billion and $0.587 billion in 2016 and 2017 respectively, convertible notes’ repayment at $ 0.673, payment of dividends at $ 0.261 and $ 0.213 in 2016 and 2015 respectively, a payment of $ 0.009 billion for employee stock plan in 2016, and proceeds of $ 0.12 billion from similar plans in 2015. In addition these, debt issuance costs payments, stock-compensation tax benefit and other minor financing activities formed a part of these cash flows (NVIDIA Corporation, 2017). The was change of $ 1.17 billion in cash over the two year period indicating increase from 2015 to 2016 of all the cash equivalents and cash. The items in net income include sales and interest incomes, gains from marketable securities’ sales, investment sales from which general and administrative expenses, restructuring charges, marketable security losses and investment impairments. The items in operating activities’ total net less working capital changes and non-cash expenses. There is a cash flow gotten from operating activities of the company which is a net of $ 291,000,000 for 2016 but a negative net cash flow of $ 676,000,000 for 2015 (NVIDIA Corporation, 2017). The company sold long-lived assets and investments at   $7,000,000 for both in 2017 and 2016 financial year. The company also bought property and equipment, intangible assets at $176,000,000 and $ 86,000 000 for 2017 and 2016 financial years respectively. Long-lived assets are the assets that have, for a long period of time, been providing economic benefits to a company. Long-term investments are those that have taken long to be disposed. The long terms assets were tangible while the long-term investments were intangible. The major financing activity that increased cash for this company was the notes issuance in 2017 which increased cash to, $1,988, 000,000 (NVIDIA Corporation, 2017). Note issuances is a facility that involves underwriting arrangement found in Eurocurrency market where short-terms notes are placed through banks and is backed by bank’s commitment to any note that the borrower will not be able to sell.

Ratio analysis

Current ratio -           current assets / current liabilities

This current ratio indicates that NVIDIA’s assets were greater than its liabilities, which means that the firm was able to honor its obligations whenever they would come due at that time.  The liquidity of the company improved from 2015 to 2016, as indicated in the increased current assets to current liabilities ratio.

Operating margin

= 14 .91 for 2015 and 27.99 for 2016 (Morningstar, Inc, 2018)

Operating margin indicates how much a firm makes on the sales, before taxes and interests are considered with a high margin showing a good performance.  The operating margin indicates a good performance of NVIDIA, which improved from 2015 to 2016.

Return on assets

= Net Income / {(Beginning + ending total assets)/2}

Return on Assets indicates the profitability of a firm in relation to the total assets, in terms of efficiency of the firm in managing assets in generation of earnings. The NVIDIA ratios indicate that the firm was efficient in converting its financial resources into net income and this efficiency improved from 2015 to 2016. 

Return on investments

= 9.46 for 2015, 23.12 for 2016 (Morningstar, Inc, 2018)

This ratio measures efficiency of a firm in terms of Return on Investment in relation to cost used in investment.  The efficiency of the firm in 2016 was better than in 2016 in terms of returns on the cost used in investment activities of NVIDIA.

Horizontal Analysis

The large difference in the net income between 2015 and 2016 can be attributed to higher costs of goods sold in 2015 in proportion to the cost of sale in 2016. The difference can also be noted in the net income per share between the two years.

NVIDIA Corporation balance sheet NVDA (SEC 10-k, pg. 50)

The firm had sufficient operating current assets to continue with its operations in the two year period. The increment in the operating current assets from $1522 in 2016 $ 3386 in 2017 shows increasing support for business operations

Vertical analysis

The percentage change in net profit margin between 2017 and 2016 indicates an improved profitability if the firm and hence growth.

The positive changes in operating current assets in 2016 shows sufficient net operating working capital and the negative change in 2017 shows insufficient net operating working capital.

Conclusion

NVIDIA analysis shows positive consolidated yearly earnings in 2016 and 2015 financial years, with a constant rise in profitability.  With a net profit margin increment of 11.85 percent over a period of two years, the performance of the firm places it a good place in the market.  The positive growth indicates that the firm is exploiting the various opportunities available to especially in artificial intelligence to expands its market and hence increase sales’ revenue. The increase in operating margin indicates the increased sales of the firm over the years, and the positive return on investment shows improved efficiency of the firm in translating its resources into profitability. Amidst increased competition, the firm is continuing to grow so quickly with no major incidences such as liquidity problems that can hold it back. The firm can be expected to sustain the growth trend in future.

References

Training and Support

Software update by a business or a company can be quite disadvantageous to employees. This is because people are of different nature and hence they welcome changes differently. For instance, some of the employees in an organization may take a longer time to welcome any change within their systems and this may end up affecting their overall performance hence affecting the business performance as well. It is important for employees to have all the necessary training and support as this would enhance the reduction of confusion and chaos among them. For a business to achieve maximum effectiveness, they are required to reduce employees change over and should increase employees’ job satisfaction. Thus they must offer the necessary support to all of their staff upon completion of the implementation of the updating process. This paper will, therefore, present and discuss the importance of training and support after the completion of software implementation. Secondly, the paper will describe methods through which training materials can be delivered to users and will describe ways through which software can be supported once it has been implemented and released.

The success of the information systems update relies completely on the training and support that employees receive at the end of the implementation process. The project manager, as well as the team analysts, must offer high-quality training and support to simplify the transition process by the users.  There are numerous methods through which training materials can be delivered to the users. For instance, each and every employee ought to have a hands-on instructor. These instructors are expected to walk the individual user through the process of undertaking daily tasks and answering questions. Another method involves having a hands-on instructor training in a classroom setting where the instructor is responsible for explaining to the users how the software operates and how they can achieve their day to day tasks. Users in this kind of method are expected to perform the allocated tasks individually in a classroom or lab setting where each and every one of the users has their own computers to practice on what is trained. Seminars are also important methods of training materials as they also enhance group discussions. The instructor, in this case, trains the users on how the software works and the daily performance using a live presentation to deliver the skills. The organization can also use the computer-based training either through CD or web-based self-placed training (Ahmed, 2016). This will allow the end user to accomplish interactive recitations that takes them through the entire process of performing daily tasks. The software is also important as it helps to test their performance and overall understanding. Book based and user guides methods of training are also important training materials as they guide the user through the operation of the system and they end their training by training the end user on how to operate the regular tasks and this is in most cases demonstrated through screenshots. This is quite helpful as the users are able to have their own softcopies as well as hard copies which they can use even in the future (Schonsleben, 2016). The success of implementing a product is solely dependent on the amount of support given to the process. Teaching on the best practice and procedures that would enhance users to deliver the required functionality is essential. However, the training period ought to be reviewed and evaluated so as to assess the progress and the overall objectives of the implementation (Ahmed, 2016).

Whenever there is a slight change in a product, users always requires maximum support. For instance, the employees can be supported on the ground. This is where the company may assign one support staffs on the field to support the employees where he or she will have an accessible area where each and every user can easily access him or her in case there is the need or there is an issue with the product. This will also enable consultations between the support staff and the other users hence improving the overall performance of each and every user within the organization. When all this is done, employees always feel at ease working with this new software and hence there is a positive perspective development by all of the users (Schonsleben, 2016). Having an ongoing support for a successful implementation of the product is very essential. This can be achieved by having a help desk together with the application of any new updates. The business may also choose to offer free webinars or rather user group sessions. The business should, therefore, strive to invest in people more than they do with the software. This is because without the commitment of the users, then the business may not be able to enjoy sustainable success in their implementation process. To sum it up, service delivery relies heavily on the interdependent processes of training and support which plays a major role in deployment, maintenance and in securing the new software updates.

References

Schonsleben. P. (2016. Integral Logistics Management: Operations and Supply Chain Management Within and Across Companies, Fourth Edition. CRC Press.

Ahmed. A. (2016). Software Project Management: A Process-Driven Approach. CRC Press.

Starbucks demand drivers

Consumer decision making process involves various stages and is determined by various factors that they look into. Consumers will decide to buy the brands that best suit them after they have valued every stage.  Need recognition is a major stage for customers in making their decision to buy Starbuck’s products (Calvo & Stanton, 2017).  Starbucks’ coffee brand is among the major brands in the market, and customers will generally relate to the products in their attempt to satisfy their needs.  The unique ambient offered by the firm’s stores makes the consumer to relate the product to high quality. Consumers normally search for information regarding the various products offered by a company and the involvement level and purchase complexity will influence to seek out more information regarding the firm (Calvo & Stanton, 2017). The buyers will look for such information both externally or internally while trying to make decision on the product to buy. This means that the experience the consumers had in the past with the company like customer service, good ambient and even the attractiveness of the product such as coffee aroma in various shops will influence the decision they make.  The external information obtained by consumers comes from the experience of other buyers such as friends and families also play a major role. Starbucks coffee products consumers have  at many times comprised of those who have had a good experience in various shops and  information they have received from experiences of others about quality and improved customer services offered (Team, 2016). The firm believes that these consumers’ makes up a large portion of the customer base and the referrals have been related with increased performance of the company. The increase in the net income of the firm to $983.1 million from $540.7 million has been attributed to customer experience and the good quality of the brand (Wahba, 2016).

 The demand for Starbucks coffee products has barely been affected by the pricing strategy of the firm, which has seen consistent rise in prices over the years.  This shows case of inelastic demand curve for the firm, where its customers buying behavior remains almost the same even when the prices are increased. Normally, an increase in the price of a certain product will lead to reduction in the amount of the product sold, unless there is price elasticity of the product (Calvo & Stanton, 2017). The firm is so well positioned that it can manage any price increment because of its brand-equity and even the power to price its menu which is leading in the industry.  The demand for Starbucks coffee is very inelastic such that higher costs can be passed on to the consumers without affecting their buying behavior.  In this case, the demand for the firm’s product seems to be the brand quality which has ensured that customers remain loyal to it .For instance , a previous market research has shown that the brand value of the firm has improved by 44 percent and buy 2015 the brand was worth almost $26 billion (Team, 2016).  The strength of a company’s brand has shown that products will be less commoditized by consumers, which enables the firm to charge higher prices for the same.  Starbucks customers seems not to be balking at the higher prices charged for the products, which is indicated by comparable U.S sales that are seen to have increased constantly especially in the year 2016 (Wahba, 2016).  The pricing power of the company indicates that a player in the industry that is competitive can increase prices without affecting the demand.  Starbucks outlets are seen as places where people decide to meet, that are between work and homes but not just coffee shops.  The customer buying behavior can be attributed to the convenience of the coffee shops, in the way they acts as landmarks, easily spotted and ubiquitous. In addition, the drink and foods offered while one is waiting for their companions’ acts as the modern town square.  In addition, other services offered in the coffee places, though subtle, such as provision smartphones and laptops charging stations make people stick around and use their gadgets and consuming their drinks and foods (Team, 2016).

 Even though Starbucks has a large customer base that is loyal to its brand, the convenience food and coffee industry has a high level of competition among the various providers of the product. The products offered by the firm are normally up against niche players and other major chains and other small firms that the business has to compete against.  The firm has does not face many substitutes on the surface since the breadth of its product covers major drinks including tea , fruit smoothes in addition to coffee. Moreover, there are techniques of brewing the products and ways of preparation that can influence the decision of the buyers and hence, the ability of the firm to compete (Geereddy, 2013).  While the possibility of a new or existing product disrupting the firm’s loyal customers may appear far-fetched, some products have become so common that the firm had to consider offering them. Firms such as McDonalds are able to offer products that provide options for consumers in the industry.  Moreover, the specialty beverage and gourmet coffee industry appears in various segments. There are some consumers who like to buy these products at coffee houses, restaurants, espresso stands and sports events and inside other establishments that may feature a beverage stand that are independent (Team, 2016).  Even though the industry is big, it continues to growth among the various segments, which provides a lot of choices for the consumers who are likely to base their buying behavior on their preference for places. The demand of the product for various firms is driven by the preferences of customers in terms of the outlets they choose to get their products.

The demand for Starbucks products is driven by consumers who prefer to purchase the products in outlets and shops operated by the firm. This can be proved by the increasing number of stores that a company is opening in different areas as the market grows and the need for its product increases.  The high quality products preferred by consumers present an opportunity for the firm to expand its operations to many places in the market. Moreover the availability of few substitutes means that the firm has an opportunity to expand without facing stiff competition, and charging prices that will ensure profitability (Geereddy, 2013).  However, the firm still faces threats from possible entry of higher quality and innovative substitutes in the market that can reduce its sales and expansion plans. 

References 

Calvo, P. C., & Stanton, J. L. (2017). Principles of marketing.  90-94

Critical Thinking Report: Problem Solving

Issues in a work environment can range from simple to complex problems that may affect the business in quite a negative way. Problems are the daily part of life but solutions are not that easy to get. Many people feel like problems are one-sided and that they are just small issues that can be resolved easily and faster. However, this is not the case. As the problem-solving process is quite long and requires maximum dedication towards defining the problem to analyzing it, generating a possible solution to analyzing these solutions so as to come up with the best solution and ultimately planning on the next course of action.  Therefore, understanding the various issues that result to a problem will be of the essence in helping to identify and correct these issues before they totally affect the business operation.

First, it is important to understand the problem in the workplace and this is what is commonly referred to as problem definition. It is after defining the problem that one is able to know solve the actual problem (Sprankle, & Hubbard, 2009). Failing to meet the expected performance repeatedly by an employee is a major problem in the workplace. This is because the failure of one person to achieve a target may result to pressure to other team members as well. More so, at times it can result in the rendering of other team members’ work useless since they are not acquiring all the support that they need from all team players.

After identifying the problem and understanding the problem, one is able to know go deep into researching what might be the cause of this particular problem. Since the inception of a new system update in the organization, some of the employees have not been able to meet their targets frequently. Currently, the company is receiving losses due to low productivity from employees as there is no longer teamwork in the company. after listening to the workers and also after reading the various emails sent to the human resource manager explaining the reasons as to why these employees failed to meet their targets over the past months, one thing is quite clear, that most of the workers are finding it difficult to cope with the new systems and thus they end up working so slow and are at times forced to manually do the work. This might be the cause of the problem, low productivity by the employees.

There are a number of possible solutions that can be implemented in solving this problem (Sprankle, & Hubbard, 2009). It is important for the company to ensure that the target is mutually agreed upon since forcing a target into the employee may result in them having a poor attitude to the same. The company should offer training sessions and should assign a support staff to help the employees to have a smooth transition from the old system to the new system (Ahmed, 2016). This will ensure that they gain the skills required for the new system. The company should also invest in giving performance bonuses to their employees following their hard work into achieving their targets.

The company has to analyze these solutions so as to be able to come up with the best solution. For instance, some of these solutions require the company to have finances so as to fund the operations. Therefore in coming up with the best solution, the company ought to weigh the benefits that they will acquire investing in these solutions and the loss of not attempting to implement these solutions. The next course of action will involve prior preparation before a system update as this will enhance the company to save up for the future training and continuous support to ensure that all employees meet their targets (Ahmed, 2016). These problem-solving steps are very important in solving this problem and when implemented they can bring great results.

References

Sprankle, M., & Hubbard, J. (2009). Problem solving and programming concepts. Upper Saddle River, N.J: Pearson/Prentice Hall.

Ahmed. A. (2016). Software Project Management: A Process-Driven Approach. CRC Press.