Introduction

It is in the 21st century that the business community is facing the stiffest competition in spite of the transformative advent of technology. Even though globalization has created many opportunities that allow companies to expand to other regions, it has presented the challenge of stiff competition since firms are no longer barred from seeking to operate from other countries. To withstand the unique challenge, companies have to keep checking their external and internal environment, assess their strategies, and other impactful factors. In light of this atmosphere, it is imperative to assess the internal and external environment of JPMorgan Chase while offering relevant recommendationsn ways to address the changing situation.

 Impact Mission, Vision, And Primary Stakeholders On Its Overall Success

The success trend that has been witnessed at JP Morgan Chase bank over the years is attributable to the company’s mission, vision, and primary stakeholders, specifically the employees and customers. According to Kotter (2012), a company’s mission and vision usually set a specific culture which is subsequently embraced by employees. If such a culture is strong, it not only improves the business performance but also motivates the workers while making them loyal. Consequently, the workers serve customers satisfactorily, thus elevating the brand image of a company. Interestingly, the above claims have been manifested in the case of JP Morgan Chase bank. The company’s vision statement is "At JPMorgan Chase, we want to be the best financial services company in the world. Because of our great heritage and excellent platform, we believe this is within our reach" and it its mission statement is “to be the best financial services company in the world”.

(JP Morgan, 2013). To achieve such a high standard and to help the business grow tremendously, the company has motivated employees to work excellently.

In fact, the company’s ecent growth and success trends would not be possible without its strong mission, vision, and primary stakeholders, especially the employees and customers. For instance, the company was ranked first among the companies that embraced diversity in the US (Pramuk, 2016). Additionally, JP Morgan (JPM bank) has been reporting an exponential increase of profitability and revenue as evidenced by the 2016 annual report that showed the company’s net revenue increased from $93 million in 2015 to $95, 668 in 2016; the loan book grew to $894, 765 from $837 million in 2015 and more customers continued to deposit at the bank (“Annual Report”, 2016). In essence, the overall success at JPM bank is due to a motivating vision and mission which ignite the passion for customer care among the employees whose prowess and commitment usually culminate in customer satisfaction and loyalty.

Five forces of competition

Notwithstanding the tremendous success and incredible resilience the JPM bank has demonstrated in years, it faces the inevitable five forces of competition.

Supplier power

The industry in which JPM bank operates is shaped by the low supplier power in almost every area. The corporation ensures costs and efficiencies in the process of supply.  Low supplier power increases profit  and this is achieved through   educating buyers  on the product,  ensuring availability of  substitutes and  creating  low forward  integration. The management creates a strong supply chain which makes the company to survive and strive in the competitive markets. The flow of services is done by implementing a systems approach which provides the framework on business requirements. The company ensures effective internal operation and quality customer services.

Buyer’s power

Nonetheless, it is different with buyer power as there many options from which customers can choose. Additionally, the buyers’ power often manifests when they decide not to borrow loans or deposit at the JPM bank. Also, buyers can negotiate the interests for their deposit without much resistance from the bank. Furthermore, the switching costs for most buyers are so low that they can opt for other competitors without any hurdle. Consequently, the bank’s profit margins drop as evidenced in 2015 when the bank decided to increase the deposit rate to the clients whom it deemed as influential and whom it feared could opt for competitors (Krouse, Trichur, and Ensign, 2015). Due to competition, JPM bank’s buyers have immense power.

Threat of Rivalry

Besides, the buyer power threat, JPM Bank faces the threat of stiff competition from major banks include the HSBC, Barclays, Bank of America (BAC), and CitiGroup. Due to their infrastructure, customer loyalty, and brand image, the four banks usually limit the dominance of JPM bank not just in the US but also elsewhere. For instance, as of 2015, JPM bank’s market share was 13.34% compared to 10.12% for BAC and 9.86% and 8.72% for Wells Fargo and Citibank respectively (Cox, 2015).  In essence, the threat of rivalry makes it somewhat hard for JPM bank to achieve either oligopoly or monopoly.

Threat of substitution

While the banking industry was thought to be immune from substitutes, the advancement of technology has proved otherwise. JPM bank faces substitute services such as Paypal, Apple Pay, peer-to-peer lenders advanced by companies such as Lending.com and Prosper.com, and the availability of prepaid debit cards by different companies. A case in point entails Paypal which apparently has more clients than 20 US banks, yet it is not a bank itself (King, 2012). As a result of these substitutes, JPM bank has lost the opportunity to expand its operations especially the online customers.  Even though the threat of substitute in banking industry has increased but JPM  has  found a  unique position  by creating  small business spending and digital wallet services.

 Threat of new entrants

The threat of new entrant has not affected the corporation since new entrants are obstructed by the high capital, financial services and government regulations. To operate on the same level as JPM bank, a substantial amount of financial capital, years of brand image, and loyal clientele are needed.  Due to these cumbersome entry requirements, JPM bank enjoys a sense of dominance and this success is evidenced by the rising number of customers. Between 2014 and 2016, JPM bank reported the highest number of customers in the industry, and the trend may continue with the introduction of other services (“Annual Report,” 2016). In short, the tedious entry process works to the advantage of the bank.

SWOT analysis for JP Morgan bank

While there may be other SWOT related factors, the oners mentioned in the table are the most crucial. For instance, strong brand image, loyal employees, innovation, and reliable distribution network form the backbone of JPM bank. Similarly, the opportunity for online customers is due to the advancement of the internet; the credit market is also expanding due to globalization while diversification is inevitable as competition rises. Then, cyber security issues, mergers, and substitutes are the most impactful threats at the moment. Also, over-dependence of the US market and the instability of the mortgage markets affect JPM bank’s progress.

Strategy to address the SWOT analysis

In light of the SWOT analysis highlighted above, it is imperative for the JPM bank to craft a strategy that will address its weaknesses, mitigate the threats, utilize its strength, and seize the current opportunities.  Such a strategy ought to target every area of operation to ensure that unnecessary inefficiencies are eliminated. Specifically, JPM’s strategy ought to target the following areas: innovation, customer satisfaction, smaller banks, and IT security. In the innovation, JPM bank should increase its spending on the Research and Development (R&D) department. Additionally, the company should link innovationnew packages for online clients to mitigate the threat of PayPal and Apple as well as other new entrants. Then, the company needs to hire the best IT specialist to address the threat of cyber security since such an occurrence would sabotage and jeopardize the objectives of the company.  In essence, this strategy is meant to tacitly address the threats and weaknesses while capitalizing on opportunities and strengths of JPM bank

Various levels and types of strategies

While the current environment does not appear to be friendly to JPM bank, the company could still maximize competitiveness and profitability through the application of various levels and types of strategies. The first strategy which JPM bank has to utilize is the functional approach which considers the human resource, R&D, and marketing for its corporate objectives. Specifically, JPM bank needs to ensure that the R&D department is focused on the external and internal factors that may inhibit the company’s goals. Additionally, it is imperative for the department to create products that target other markets such as the online customers after which vigorous marketing is essential.

Business level strategy

Furthermore, JPM bank needs to improve on its business level strategyo ensure that other competitors do not capitalize on its weaknesses. Typically, the business strategy focuses on three crucial areas: setting specific goals for performance; monitoring the competitors’ actions; evaluating the actions and decisions necessary for the attainment and maintenance of competitive advantage (Kotter, 2012). In this case, JPM bank needs to recognize companies such as PayPal and Apple as serious competitors whose actions deserve close monitoring and precise response. In conjunction with this approach, JPM bank needs to ensure that its operational level strategy is effective. Specifically, the bank has to use its resources such as experienced workers, financial muscles, and reliable distribution network to achieve its objectives. The company should use business-level strategy in creating the business goals, competitive advantage, minimizing cost and controlling expenses.   Under business-level strategy, the company should focus on;

Cost leadership

 The company should   implement unique set of actions which are related with the production of quality goods and services with low prices. To be a cost leader, the business should focus on minimizing cost, create production control and ensure efficient facilities.  Cost leadership will maintain profitability by developing substitutes, creating barriers for   new entrants and avoiding the price war (Kotter, 2012).

 Differentiation

The company should apply the differentiation strategy and ensure unique features, customer’s services and more. The Company should show commitment and high performance in order to maintain the competitive edge (Kotter, 2012). To ensure differentiation, the company should adapt to the changes, implement new technologies and   implement core competencies in the production of quality products.

Corporate-level strategy

The company should apply corporate-level strategy and in this case, it should focus on uniting   business units.  For example, the company may focus on portfolio management and conduct diversification and acquisitions. The main purpose of corporate-level strategies is to expand the business in global level and become globally efficient. In addition, corporate-level strategy will assist the company in creating standardized products and develop innovations internationally. The company should   think on how to accomplish the long-term goals.  In this case, it is important for the company to focus on knowledge of competitors, company structure and business segmentation (Kotter, 2012). Under corporate-level strategy, the company focuses on the following;

 Market expansion and penetration

The rising number of players in the industry implies that competition is inevitable, meaning that profit margins may decline. To prevent this occurrence, JPM bank ought to expand to other regions such as Asia. According to Kinkyo, Matsubayashi, and Hamori (2013), Asia offers a lucrative opportunity for the players in the banking industry due to the infrastructure needed in the continent as in the case of Japan. The same opportunity has been reported in Africa, where foreign participation has increased exponentially in the recent years (Gekonge, 2014). Such opportunities would result in improved competitiveness and maximized profitability by JPM bank while easing the burden of over-relying on the US market. It is important for the company to expand internationally and compete internationally in order to enjoy high profitability.   The latter will be achieved through gaining new opportunities and understanding the global customers.

Acquisitions and diversification

 The company should focus on investing in different areas in order to minimize the risk and achieve financial goals.  This is an effective way of avoiding downturns   and survive lengthy decline. The company will also build stability and avoid company risks. 

Also, JPM bank has to consider acquiring other companies that pose a serious threat to its operations. One target that JPM bank should target as part of its acquisition is Paypal due to the high number of customers the company commands coupled with the magnitude of a threat it poses. Currently, PayPal acts as a platform of substitutes, thus weakening the competitiveness and profitability of JPM bank. Besides PayPal, JPM bank needs to target other companies since acquisitions have been found to neutralize competition while boosting the chance of oligopoly (Geiger, 2010). All the above strategies would ensure that the weaknesses and threats identified earlier are addressed effectively, thus improving the competitiveness of JPM bank while assuring it of increased profitability.

Communication plan

To effectively communicate to its various stakeholders, JPM bank requires a communication plan. In communicating with different stakeholders, JPM bank ought to change some methods of communication. For instance, the company ought to use memos when communicating with its workers on issues to do with the strategies mentioned above. A case in point includes acquisitions, diversification, or expansion, where the company should not use the internet due to the hacking issues, which may affect the process; currently the company utilizes the emails and internet for most of its communications.  Such a communication ought to come from the top management to avoid any misunderstandings.

Conversely, communication with the government needs a different approach; official letters would suffice. Typically, companies have to notify government agencies when a decision on mergers and acquisitions is made. Again, using the internet is not recommendable, but letters would ensure the information reaches the intended department without an intrusion on privacy. The person responsible for the task depends on the responsibilities assigned, but the top management is typically mandated with the duty.

Contrastingly, all communications pertaining to customers ought to happen through the mainstream media since such as method would give the company the much-needed publicity. It is improper for the employees to learn about the company’s plans through the media but that is the only appropriate medium for the customers. In essence, JPM bank needs to utilize official letter as the medium for communication with some stakeholders, specifically the government, but use internal mechanisms such as memo when communicating to employees and the media to the customers.

Corporate governance mechanisms

Since the banking industry is prone to unethical practices such as insider trading, the JPM bank has strived to employ different corporate governance mechanisms to control the managerial actions. Currently, JPM bank utilizes the collaborative and multi-stakeholder (MSM) governance mechanisms in controlling the managerial actions. Typically, the collaborative governance mechanism entails constant communication between an entity and the government as well as the community it serves while the MSM gathers the relevant stakeholders to ensure dialogue and decision-making work to address any issue affecting the industry.  The MSM is perfectly employed at JPM bank as evidenced by the annual assessment of all the managers by the Board including the quality of information flow in the company. The MSM mechanism has, for instance, enabled the company’s board to access the management at any time and report anything that may appear to contradict the company values (“Corporate Governance Principles,” 2016).  As a result, managers have to adhere to the stipulated ethical standards and rules both by the government and the company.

Similarly, the collaborative mechanism is applied at JPM bank as seen in the collaboration with the relevant stakeholders including the government, community, and employees to safeguard the privacy and confidentiality of all the customers and other personnel. Additionally, the Board reviews the Chairman’s and CEO’s performance each year while working with the employees in crucial decision-making initiatives (“Corporate Governance Principles,” 2016).  Such mechanisms, if maintained, could have significantly positive impact on the company since corporate governance mechanisms usually help firms to achieve the much-needed value-addition (Nikoskelainen & Wright, 2007). As a result of embracing these mechanisms, JPM bank has managed to overcome many hurdles in an industry that is often prone to financial scandals.

 Effectiveness of leadership

For a long time, the leadership at JPM bank has been effective as evidenced by the success trends witnessed in years. According to Humphrey (2014), effective leadership is characterized by strong personality traits, emotional intelligence, high skills, and unmatched competencies. These qualities have been manifested at JPM bank in years as seen in the quality of the employees it hires, the level of motivation among the workers, and the loyalty of its customers. Subsequently, the company has remained at the top of others in the industry for a long time.

However, it is imperative for the leadership at JPM Bank to focus on the major factors that help in the business sustainability. While the company has been resilient amidst stiff competition, the level of innovation, coupled with the emerging trends among buyers, requires a different approach from the one JPM bank has maintained in the past. Specifically, the firm needs to have a leader with unmatched skills and focus on sustainability to address the new challenges in this era. Metcalf and Benn (2013) asserted that a sustainability-oriented leader demonstrates unique abilities to predict complexities and engaging workers to adapt and have “the emotional intelligence to adaptively engage with their emotions associated with complex problem solving” (p.369). Unless such a leader is installed at JPM bank, the competition and ever-changing consumer trends may have a negative impact on the company.

Ethical corporate citizen and its impact

Considering the sensitivity of the financial industry, JPM bank has strived to uphold the ethical values of the industry. For instance, the company has a strict code of ethics tackling almost all areas of operation. The financial officers and other employees are expected to always maintain ethical conduct while complying with all the legal requirements “even when it not the easy thing” (“Code of Conduct,” 2017, para.1). The company proved its commitment to this code by dismissing some employees in both the US and UK who had cheated about the accountancy results (De Graaf, 2015). Consequently, such actions help the company’s bottom-line by portraying it as an organization with a high level of integrity.

Nonetheless, the company does not fully embrace these values, particularly when it is operating in other regions, and this trend may have an adverse impact on its bottom-line. A case in point entails the scandal that was exposed in 2016, where the company tacitly hired employees who parents had political influence in China as a way of winning business opportunities; in the aftermath of the revelations, the company opted for a $264 million settlement (Protess & Stevenson, 2016). Subsequently, the company suffered not only financial implications but also reputational crises, meaning its bottom-line was inevitably and severely affected.

Conclusion

In summary, JPM bank has remained successful in years, but that success and dominance will be affected by innovation, competition, and substitutes unless specific strategies and measures are implemented promptly and effectively. In leadership, the company needs a sustainable-oriented leader with the ability to predict complexities and prepare for the same accordingly by motivating employees to act proactively. Secondly, the company has to be fully committed to the ethical governance code to avoid a repeat of the scandal exposed in China. Lastly, JPM bank ought to employ diversification, acquisitions, and market development to counter the rising competition. Once these recommendations are implemented, JPM bank may remain dominant for another century.

References

Cox, J. (2015, April 15). 5 biggest banks now own almost half the industry. Retrieved from http://www.cnbc.com/2015/04/15/5-biggest-banks-now-own-almost-half-the-industry.html

De Graaf, M. (2015, October 23). Goldman Sachs and JPMorgan grads fired for CHEATING on basic math test | Daily Mail. Retrieved from http://www.dailymail.co.uk/news/article-3285807/Dozens-junior-bankers-Goldman-Sachs-JPMorgan-laid-CHEATING-basic-math-test.html

Geiger, F. (2010). Horizontal acquisitions, merger rents, and non-price competition – a case study from the machinery industry. Mergers & Acquisitions in the Machinery Industry, 11(2), 81-111.

Gekonge, C. O. (2014). Emerging business opportunities in Africa: Market entry, competitive strategy, and the promotion of foreign direct investments (p. 138). New York: IGI Global.

Humphrey, R. H. (2014). Effective leadership: Theory, cases, and applications (pp. 31,117). Los Angeles: Sage.

JPMorgan Chase & Co. (2016). Corporate Governance Principles. Retrieved from https://www.jpmorganchase.com/corporate/About-JPMC/ab-corporate-governance-principles.htm

JPMorgan Chase & Co. (2016, December). Annual Report and Proxy. Retrieved from https://www.jpmorganchase.com/corporate/investor-relations/annual-report-proxy.htm

King, B. (2012). Branch today, gone tomorrow: The case for the death of branch banking. Singapore: Marshall Cavendish.

Kinkyo, T., Matsubayashi, Y., & Hamori, S. (2014). Financial Globalization and Regionalism in East Asia (1st ed., p. 121). London: Routledge.

Kotter, J. P. (2012). Corporate culture and performance. Boston, MA: Harvard Business Press.

Krouse, S., Trichur, R., & Ensign, R. (2015, December 28). J.P. Morgan to Increase Deposit Rates for Some Big Clients in January. WSJ [NY]. Retrieved from https://www.wsj.com/articles/j-p-morgan-to-increase-deposit-rates-for-some-big-clients-in-january-1451330440

Metcalf, L., & Benn, S. (2013). Leadership for Sustainability: An Evolution of Leadership Ability. Journal of Business Ethics, 112(3), 369-384.

Nikoskelainen, E., & Wright, M. (2007). The impact of corporate governance mechanisms on value increase in leveraged buyouts. Journal of Corporate Finance, 13(4), 511-537.

Pramuk, J. (2016, April 26). JPMorgan Chase named top US company for diversity. Retrieved from http://www.cnbc.com/2016/04/25/jpmorgan-chase-named-top-us-company-for-diversity.html

International and local businesses

International business is a business process where goods and services and other commercial activities are carried out across multiple countries. International business creates globalization which promotes an interdependent and integrated economy. It encompasses various activities such as exchange of goods and services, resources intellectual properties, assets and more (Newlands & Hooper, 6). Other important point to note is that international business requires a strategic management in order to achieve performance objectives. In addition, international business requires entrepreneurship which encompasses opportunities and innovative ideas. On the other hand, local business is a process where business activities are carried out in local area. Local business has increased growth through online visibility and physical locations. An important point on local business is that it requires a tax registration certificate and other regulations (Newlands & Hooper, 6). The point is international business differs from local business in various ways. In international business, skills and knowledge based on new markets are needed. In addition, laws and regulations, marketing strategies, customers’ behaviors and other related issues have to be considered. In preparing to enter in international market, it is important to note that business operations will be impacted by the new culture. In other words, cultures makes international business to differ from local business in that in order to succeed in business practices, an organization must learn about the culture and how to associate with people (Newlands & Hooper, 7). Cultural factors are a major thing that makes difference in that people in different nations have different perception when it comes to business practices. Language is also a barrier to business and organization needs to develop mutual acquaintances in order to avoid uncertainly.

 The major thing that creates the difference on how international and local business operates is the activities performed.  Note that local business focus on local practices while international business does not only focus on business practices but also conditions and laws   in the host countries. The other factor that makes international business look different is commercial environments. This means that countries in which the organization is running its operation have different commercial environment in terms of development (Newlands & Hooper, 8). The latter affects internal business in that some countries are industrialized and have good infrastructure while others are developing. The development countries will provide effective transport and communications, financial system, and more. However, developing countries lack effective systems for business operations and organization will be forced to offer the same services offered in own county. Technology also makes the difference in that there are countries with advanced technology and skilled workforce while others   lack the ability to use the technology (Newlands & Hooper, 10). Thus, foreign markets need different technology to meet customers’ needs.  Other factor that makes the difference is the level of competition, in foreign markets, organization will experience a dynamic and complex competition and a strategic tool such as the Porters 5 forces is required to evaluate whether the organization will be able to compete.  International marketing also requires market intelligence in terms of market strategy, market structure and competitors. Even though local business requires business strategies, it does not focus on competition but its concentrate on customer base, innovation and long-term plan (Newlands & Hooper, 10). Unlike local business, international business needs to adhere to the  legal system to avoid long term effects on business. In advertising goods and services, international business is required to find the appropriate media to reach all customers in different nations.

Work cited

Newlands, David J, and Hooper J. Mark. The Global Business Handbook: The Eight Dimensions of

International Management. London: Routledge, 2016. Internet resource.

The response of Wells Fargo bank to the scandal

             In response to the scandal, Wells Fargo took the following actions and remedies. First,   the company employed the PricewaterhouseCoopers (a consulting from) to conduct the data analysis on unauthorized accounts. After review, the consulting found that unauthorized deposit accounts and credit card accounts were 1.5million and 565,000 respectively (Mims, 2017).  For this reason, the refund amount for unauthorized accounts was  $2.6 million, 5,300 employees who violated the sales policy were fired, the top management bonus was reduced by $32million, the organization minimized cross-sell metrics and maximized customer services through establishing branch-level incentives.  The responses led to significant changes in that, stocks options which costs $47 was cancelled, sales goals were cancelled and  a corporate-wide enterprise was established to ensure transparency in sales practice (Mims, 2017). In 2014, the bank ensured that ethical performance is maintained while offering incentives compensations. On compensation system, product and sales goals as well as individual product sales were completely eliminated and new system was established where product, feedback and performance were used to determine the employees’ performance. To avoid unauthorized accounts, verification procedures and training were established (Mims, 2017). 

Recommendation

 To address the problem and avoid such a scandal, Well Fargo should adhere to regulations and guidance. It is the role of Federal Regulators to ensure transparency in financial institution by monitoring compensations plans (Mims, 2017). In addition, Well Fargo should also be responsible in monitoring the compensation plans and polices by ensuring that the process adheres to Interagency Guidance and aligns with sound banking practices. Even though the bank had a ‘proposed the rule’, Federal Regulators should establish tougher rules which will control the sales practice (Mims, 2017). Well Fargo should also develop compensation strategies to avoid excessive risks. Since incentive-based compensation is contributing to risks, board of directors in Well Fargo should focus on recordkeeping and documentation. Rather than focusing on uniform rules, Well Fargo should promote board oversight (Mims, 2017).

 Reference

Mims H. Justin. (2017). The Wells Fargo Scandal and Efforts to Reform Incentive-Based Compensation in

Financial Institutions. NORTH CAROLINA BANKING INSTITUTE, Volume 21 | Issue 1/21

Retrieved from: http://scholarship.law.unc.edu/cgi/viewcontent.cgi?article=1445&context=ncbi

Reduce Fear and Increase Trust

Introduction

Most organizations today are built around dictatorial command and management systems which reflects a rather deep mistrust of workers commitment and capability (Hamel 3). These systems tend to over-assert authorizations as a mode of forcing employees to comply. This is the primary reason as to why most organizations are full of anxious workers who are undecided to make decisions, think critically or even trust their self-based judgments. The adaptability, innovation, and high workers participation in an organization can only thrive in an environment that encourages high trust and a low fear operational culture (Hamel 3). It is in such surroundings, information is highly shared, argumentative opinions are freely articulated and taking risks is highly encouraged. Operating in an environment that is full of mistrust and fear paralyzes and discourages performance and growth and should, therefore, be sent out of the future management systems (Beal 7). Uncertainty and fear are damaging in regard to innovation and workers participation and management should focus on building trust in order to encourage growth and high production to secure organizations success in the future. ‘’Reduce fear and increase trust’’ is a feasible management moonshot that results in improved performance and encourages innovation.

Trust in the workplace is the primary necessity to achieving the wellbeing of the workers and increasing organizational performance (Beal 8). In order to generate a high performing working culture, organizational managers are anticipated to contemplate of themselves as coaches rather than submission officers. In the last century and more so in the last few years the general role of managers has been altered histrionically. In more often than ever research has consistently proven that in order to stimulate the best performance in individuals, managers should not develop a culture that is dominated by fear. A work culture that is grounded on fear destroys the morale of the most specialized workers and ensures that those workers with the opportunity to improve never attain their comprehensive potential (Beal 7). Most of the working cultures that are ruled by fear are not intentional but the outcomes and the signs are obvious and should be taken into account in trying to change the environment.

Fear workplace culture is more likely to evolve in those organizations that have authoritative hierarchical structures. In that, commands are derived from the top to the low-level employees and if the sanctions are not adhered to, disciplinary measures are certain (Paludi, Paludi, and DeSouza 8). Fear discourages participation and increased innovation since employees are afraid that their ideas and contributions might be judged as disobedience. In addition, fear constrains learning, skills development and performance but it is only the management that can modify such cultures. Trust is only developed when participation is encouraged. In that encouraging participation in decision making and operations creates a sense of fulfillment and inspiration to perform better. In an authoritarian leadership fear then manifests since the workers are not permitted to participate in decision making or raising any form of the opinion (Hurley 17). In such an environment team integration is minimal if it exists. In that, the communication from the control and management systems tends to be patronizing and aggressive which creates repetitive work that is particularly boring with little to zero opportunities for growth. The state of the oppressive management approach prevents the learning of fresh procedures and production strategies (Hurley 17).

A workplace culture that encourages fear in its staffs is certain to experience diverse issues. The fear of vengeance for the committed mistakes forces workers to be reluctant to take any form of risk that leads to reduced creativity and production (Hurley 18). With the increased heightened sensation of individual-based security, employees are bound to lose their worries for their teams or the general success of the company and instead they concentrate more of guarding themselves against any disciplinary measure. Low morale and inspiration to perform better unavoidably lead to absenteeism and their free time in addition to high turnover rate. It is immoral to ignore the fact that a culture that is dominated by fear is particularly more expensive to the organization than beneficial (Hurley 21). In that with a high rate of turn over based on the fact that the employees feel less appreciated and dissatisfied with the roles that they serve the company will be forced to spend more on recruitment and training new employees.

Fear normally arises based on the anxiety that is acquired from having distinct uncertainties in regard to the anticipated outcomes and the best way to overcome it is through promoting trust (Reina and Reina 14). When employees are assured that they will not be disciplined because they undertook measures that they believe will benefit the company positively are always willing to undertake different risks. In addition, they will be willing to participate and raise any concerns that are believed to be of negative force towards the wellness of the company. A delegation of tasks is necessary but the workers should also be permitted to perform their roles without any fear (Beal 9). In an open and honest work organization, workers will be willing to speak and share their ideas thus their loyalty to the company will increase as well as their skills and knowledge.

Reducing fear and increasing trust in the workplace is highly beneficial. Managers are in most cases in a dilemma since their workload is high and thus, if they fail to delegate to the workers then operations will fail (Reina and Reina 15). The success of any organization is fully dependent on the performance of the employees and thus their contributions and needs can never be ignored. Thus when delegation is turned to the workers who are filled with fear and mistrust, then the resulting failure will fall on the mangers. Thus, managers are continuously searching for the staffs that they can trust. A trustworthy staff is highly likely to be retained when others are discharged and creating a reputation based on dependability is valuable for professional growth and stability. Trust is the general basis for any valuable relationship amid the staffs and the organization. If employees trust one another they are likely to enjoy working collaboratively and maintain honest communications (Reina and Reina 16). Building trust involves ensuring that one is dependable which cannot be achieved in the presence of fear.

One of the primary benefits of creating and augmenting trust in the organization is that individuals in such settings are likely to feel actually encouraged and enthused to their best every day. Trust level is particularly placed on the trial when the management system is an authoritarian one. Trust is perceived to be a critical section in managing individuals and creating a high performing company (Reina 32). This is the foundation on which all the relationships are developed. In instances that workers feel not trusted to perform their roles appropriately, they become hesitant to conduct or initiate anything that is not approved. This hinders the potential of being creative and focused (Reina 32). On the other hand, when the staffs acquire the sensation that they are fully trusted and that the managers hold the belief that they are bound to do the right things they are likely to conduct things above expectations that deserves the trust and more. Gone are the days when managers and the entire control system’s efficiency was measured by their potential to sanction and ensure compliance. The working place today necessitates different measures that are not only aimed at achieving organizational success but also to create efficiency and employees satisfaction. Without a well-integrated workforce them success will only remain to be a vision that is never to be achieved (Reina 32). There is a growing necessity to build desirable relationships among workers and managers.

Every corporation depends on relationships in order to build sustainable success which is either internal or external based. All these relationships are dependent on trust and the feeling should work in both directions (Beal 11). In that, it is essential for the workers to feel trusted and also the control and command systems must also trust them. Workers desire to trust as well as believe in their managers. This creates the belief that the command and management system is focused on the wellness of the workers. The workforce is the greatest resource that any organization owns and should, therefore, be guarded at all cost. The employees might have been employed based on their abilities but the determining factor to high success is fueled by their attitudes. The more that the management system does in order to create hope and increase trust among workers the more inspired they become leading to high performance (Beal 9).

While reducing fear and increasing trust in the organization quality, performance and skills are augmented (Reina and Reina 17). Skills, knowledge, and innovativeness are some of the aspects that can only grow in an environment that encourages positive relationships and discourages fear. In that, the intention of reducing fear while augmenting trust is to allow employs to fully participate in the organization as well as work towards the success of the company. This cannot be built in a culture that only encourages delegation without creating opportunities for the staffs to respond and contribute to decision making by expressing their thoughts (Hurley 27). In a working environment that is full of trust communication flow is quite high which tends to eliminate any confusion regarding tasks and encourages all the workers to consistently strive to build their skills and act critically for the wellness of the company (Reina 32).

In conclusion, it is apparent that reducing fear and increasing trust as one of the management moonshots is a critically important component that determines the success of the organization. Firms whose workers trust the management tend to own a more participative workforce with increased efficiency. With fear, it is not possible for innovation to grow since the workforce focuses on guarding itself against any disciplinary measure rather than concentrating on the growth of the organization. Organizations that have actually lost the trust of their workers are unlikely to obtain success. It is common for the loss of trust to occur particularly in periods of economic changes but the management should at all times strive for the wellness of their employees which equals to organizational success.

Work Cited

Beal, Danna. The Extraordinary Workplace: Replacing Fear with Trust and Compassion. Boulder, CO: Sentient Publications, 2010. Print.

Gary, Hamel. Moon Shots for Management. 2009. Harvard Business Review.

Hurley, Robert F. The Decision to Trust: How Leaders Create High-Trust Organizations. San Francisco, CA: Jossey-Bass, 2012. Print.

Paludi, Michele A, Carmen A. Paludi, and Eros DeSouza. Praeger Handbook on Understanding and Preventing Workplace Discrimination. Santa Barbara, Calif: Praeger, 2011. Print.

Reina, Dennis S, and Michelle L. Reina. Trust and Betrayal in the Workplace: Building Effective Relationships in Your Organization. , 2015. Internet resource.

Reina, Dennis S. Rebuilding Trust in the Workplace. Readhowyouwant.com Ltd, 2011. Print.

Case of Corruption: Odebrecht Corruption Problem Car Wash

Company Overview

Odebrecht is an international corporation of Brazilian foundation established in 1944 by Norberto Odebrecht[1]. The company has a consistent commitment to satisfying the needs of its consumers, generating maximized earning for its shareholders, supporting developments in the communities in which it conducts business and assisting its members to attain full potential. The company is principally active in the fields of construction, industry, engineering, infrastructure and engineering services both for the public and private sector[2]. The company is also engaged in petrochemical, oil, gas, transport, real estate and agro-industrial businesses across the globe. The company utilizes a decentralized business model that has helped it throughout in increasing its market presence and revenue generation. The decentralized model is mainly grounded on investing in different servicing industry both in the private and public sectors[3]. With the company’s operational presence in Brazil and twenty-four other countries, it is guided by a diversified business operation and a decentralized business structure.

Odebrecht is involved in businesses that relate to engineering, innovative solution, construction, infrastructure development and energy based projects that serves personal consumers and communities in general[4]. Odebrecht revenue is accounted to add up to 45.8 billion dollars with more than 11 percent of the revenue being acquired outside its home country Brazil based on a 2015 report. The company occupies the fifth position in regard to size within the private sector in Brazil[5]. Its 73rd anniversary was marked this year with its presence increasing across the globe with a 20 percent revenue increment for the past fifteen years across the globe[6]. However, the company exports its products and services to more than sixty countries around the globe which demonstrates its high presence.

Odebrecht Company has not acquired its success without facing intense competition from well-established firms in the provision of construction and infrastructure development and management services mainly for highway and other diverse transportation schemes. The primary competitors in the case are Rooney Holdings, The Hubbard Group, and Community Asphalt Corporation[7]. These competitors are well established in the global context and the success has mainly been fueled by their financial stability, profitability and market share. Competition is particularly high in the contracting, building and construction management globally based on the increasing need for better infrastructures and the presence of well-equipped and highly reputed organizations such as Odebrecht.

Odebrecht is undyingly dedicated to satisfying of clients and maximizing revenue for the shareholders including the employees and investors[8]. The company mainly supports technology as well as innovation that is aimed at obtaining sustainable growth. The primary objective is to ensure that individual’s lives are improved by developing sustainable solution via contract, construction, and infrastructural management. The company’s strategic vision revolves around becoming the global leader in sustainable construction and infrastructural services. The company’s values are mainly grounded on the needs of the consumers, community, and shareholders. In that, it acknowledges that employees are its most valuable assets and without them, the company’s operations can never be fulfilled. In addition, the company also recognizes the needs for quality, convenience, and sustainability by the communities and consumers in which it works for. The company is fully committed in socially responsible activities that are targeted at enhancing life’s quality in general. Its mission is organized in a manner that seeks to create unity in regard to thoughts and actions consistency among those that are involved in its extensive range of industries, nations and cultural diversity in which the company operates. This assists the firm to comprehensively and successfully meet the requirements of its consumers, increase worth for the shareholders, invest back the achieved outcomes and develop from distinct fronts in the quest of generating wealth for all the involved. Odebrecht is additionally committed to pursuing an accountable and transparent management[9]. All such practices are well included in the conduct code which offers guidance in regard to internal and outside relations and performances.

Odebrecht Company is guided by Odebrecht Entrepreneurial Technology (TEO) which is a customized principle set, ideas as well as criteria asserting education and operations which offers a moral, ethical and conceptual foundation for any actions that are performed by Odebrecht company members[10]. These principles recognize the likelihood in all human individuals such as their general will to act, their abilities and need to develop and the desire to outweigh the previous outcomes. This also adheres to an organized delegation procedure one that is grounded on partnership and trust amid team members and leaders. TEO is claimed to be the company’s culture basis which is utilized in guiding the actions of every individual in different business within the company’s operations, nations and diverse cultural settings in which the company is engaged[11]. This approach ensures that the company is well situated and focused on fulfilling its consumers’ needs in general.

Operations that are strongly based on ethics, transparency, and integrity is the company’s commitment as it believes that these values are essential in enabling the business to produce authoritative results. The company has a documented and approved compliance policy that works to enhance positive conducts. Besides the fact that the company apologized for the colluding with unacceptable practices that were uncovered by the carwash scandal, the company has assumed its commitments to transform the company has developed a tangible obedience measures which have been applied since the beginning of the year and therefore, shows that corruption can never be accepted[12]. This compliance policy is the instrument that is aimed at ensuring that the company acts in an ethical, translucent and trustworthy manner.

The company’s corporate social responsibility (CSR) approach is sustainability. In that, the company seeks to provide quality and sustainable services that will, in turn, improve the general life of its consumers and the communities that it operates in. This implies that the company is focused on sustainable development that will, in turn, improve the lives of those that surrounds and ensure that the needs of its consumers are satisfied, its reputation is preserved and earning is maximized. When choosing projects the company settles of those that create high value and promotes sustainable growth[13]. The company is currently undertaking an environmental responsibility initiative that involves encouraging and practically using natural resources cautiously. For instance, in Angola, the company has focused on winning the hearts of the consumers by investing in street cleaning and improvement which created a positive PR in the market which has earned it more construction projects in the region[14]. The firm is also involved in promoting social development by supporting education and these investments are focused on reinforcing communities with activities that are bound to increase wealth and encourage stability. Odebrecht encourages both tutors and students to focus on innovative solutions that will, in turn, facilitate sustainable development in regard to architecture, engineering, and infrastructure. The primary goal of pursuing these initiatives is to earn trust and show that it is a company that is focused on sustainability, transparency, and accountability rather than earning. Since the company has been involved in some destructive scandals the company is seeking to win the trust of its consumers in general as well as communities in which it operates.

Ethical Situation and Consequences

For an extensive period, Latin America’s construction company Odebrecht has engaged in developing some of the area’s most vital infrastructure developments. However, it 2016, the company become well recognized for additional exceptional since it was involved in one of the topmost corruption scandals in history. In 2016 the company signed got into one of the highest leniency deal alongside Swiss and America after confessing to engaging in corruption and agreed to settle a 2.6 billion dollars fine[15]. This is considered to be the highest sum of this kind in history. Brazilian construction gigantic Odebrecht signed the leading anti-corruption agreement in the economic history in December 2016 with regulatory authorities from three distinct continents after a two year period of consistent investigations that resulted in the sentencing of its CEO and 76 other authoritative figures in the company.

The company’s 77 executives had agreed to plea bargains with the Brazilian authorities and all their statements of the confessions made public[16]. The revelations created authoritative political and socio-economic consequences across Latin America. Odebrecht is categorized as the region’s giant construction corporation and it is one of the highest contributors to the economy. Odebrecht is one of the corporations that has been caught in the Brazilian Corruption Investigation where many firms confessed of paying bribes to distinct officials for contracts exchange. The company’s CEO was arrested in June 2015 along 76 other executives and in 2016 they signed an agreement where they agreed to make revelations for the committed crimes in exchange for reduced prison sentences[17]. Odebrecht officials confessed to giving bribes in order to acquire contracts in Brazil and in different parts of the globe. The firm is also seeking to settle corruption cases with different governmental authorities so that it can be permitted to tender for further infrastructural projects.

Odebrecht admitted to making payments worth 788 million dollars bribes particularly to government officials in eleven different countries that include 9 based in Latin America[18]. The corruption scandal was a violation of Foreign corrupt practices law since the company particularly generated millions in engaging in corrupts deals. The company executives engaged in deceptive and unprofessional practices which violate ethics in general. Through the deceptive practices, the construction firm has become a global giant for decades through the use of bribery as well as corruptive conducts to acquire close to a hundred major development projects in over twelve different nations thus generating illegally acquired revenue of close to 3.3 billion dollars. The violation mainly occurred through the use of bribes to major politicians by supporting their campaigns and other initiatives in order to acquire development based projects.

The violation led to the destruction of major political career for those that have been funded illegally by the company. In addition, the executives who were 77 in the inclusion of the chief executive were sentenced to 19 years and less after getting into a bargaining plea that sort to lower the sentences making confessions of the committed crimes so that all those that are accountable can be charged for their misconducts[19]. Committing such crimes did not only affect the company’s reputation across the globe but also affected employment and some of the well-developed careers especially in the Dominican Republic and Brazil. For instance, Dilma Rousseff was forced to reassign from the president left wing role as she was one of the casualties involved in encouraging bribes[20]. In addition, the company has lost many deals in distinct countries as most of them are still investigating of any misconduct that the company might have played part in. In this case, the company has been affected economically based on the loss of potential to participate in business due to the loss of trust.

The company’s reputation has particularly been destroyed despite the fact that those that were involved were charged for their crimes. In spite of the company playing part in apologizing for engaging in the unacceptable practices communities in the affected areas believes that it cannot be trusted as it only acted to maximize its own earnings without accounting for the wellness of the community[21]. Further being one of the largest corporations in the region in terms of growth, financial stability and revenue contribution the economy has been impacted rather negatively as the loss of opportunities has resulted in minimal contributions. It cannot be ignored that the company is mainly focused on creating sustainable growth but the fact that it ignored its transparency, accountability and ethical beliefs has contributed to its fall. The violation affected all its contributions as it will be required to put higher efforts in achieving it back.

The discovery of the violation that included the use of deceptive and unprofessional practices such as bribery has affected the company financially as well as its image. The company has for the longest period been recognized for its sustainable growth contribution across the globe as well as being a consumer-centric company. However, after the discovery of the violation by the public the trust and the positive public relation that it had created was ruined with most individuals demonstrating against its practices. The information has traveled across the globe and to most it deceptive acts demonstrates that it is not committed to creating wellness in general. In addition, most of the countries in which the company operates have limited it from acquiring any fresh projects or even continuing with the ones that it had stated stating that it has violated the Foreign Corrupt Law and the cases should be settled first[22]. In this context, the firm has destroyed its potential, in general, to participate in expanding its investment and finances in general. The company financial stability has been affected since its revenue generation has lowered drastically. Further, its operating expenses have heightened since it is currently engaging in Public relation activities and marketing that are objected at rebuilding the lost image and creating trust among the consumers and foreign nations. Having affected its major markets such as America and Swiss it is apparent that its business opportunities are minimal and it will require more time and resources to recover.

Analysis and Recommendations

In the globalized economy today, consumers categorize companies to greater standards based on the practices[23]. Consumers are currently in search of more than only the material items or even quality services when selecting a firm that they can work with. Nine in every ten clients anticipate that companies should not just generate profit but also conduct their operations in an accountable manner in regard to addressing environmental and social matters. Recognizing the significance of social responsibility to the consumers, in general, most firms are currently focused on practicing extensive sets of CSR[24]. Odebrecht is centered on sustainability as its primary CSR strategy[25]. This strategy’s goal is to build better relationships with the community while improving their lives by centering on growth.

The deceptive practice that was facilitated by Odebrecht executives destroyed the image of the company and pressured it to act upon. The company apologized to the public, all the affected nations as well as communities for the deceptive practices that had been going on for years. In response, the company approved a compliance policy that seeks to govern internal as well as external practices and guide individual’s behaviors. This was created in order to fulfill its commitment to the Brazilian, Swiss and American governments. In my opinion, the action that the company took in response to the violation that had occurred is adequate because it showed much concern by participating in ensuring that all those that were held accountable for different crimes were charged irrespective of their position. In addition, the compliance policy is essential in ensuring that such practices are not encouraged in the future as it might destroy the reputation and performance of the company in general[26].

Odebrecht Company’s internal ethics compliance program failed to notice the violations since the deceptive acts occurred with the knowledge and support of the major executives. This is because the violation was detected after the Brazilian probe that resulted in many firms of revealing that they participated in bribery activities in order to acquire contracts rather than trying to acquire them in an ethical, professional and procedural manner. This occurred despite the fact that the internal compliance highlighted that the firm is responsible for maintaining quality, sustainability as well as transparency in all its operations as a company that is focused on sustainable development. The policy highlights that all the members are mainly responsible for ensuring that they conduct professional, trustworthy and transparent operations. Since the company is centered on improving the quality of existence for everyone in the communities that it operates in, it is apparent that the practices with the knowledge of the firm as the executives were in full support of the bribery. In addition, the deceptive practices were aimed at increasing the financial gains for the firm rather than focusing on the wellness of those that are involved[27].

The corporation’s CSR plan in the case of the occurrence of the corruption scandal was not connected with its business. This is because while the CSR of the company is particularly focused on the generation of high sustainable value all the business operations were focused on higher financial earnings. Odebrecht did not only focus on maximizing the shareholder’s earning but also ignored its sustainability plan. While assisting in getting solutions to matters regarding construction and infrastructural development helps the company to realize the actual sustainable movement communities. Sustainability business strategy involves the involuntary promise that holds that the success of the organization and the wellness of the society are directly connected and the long run interests of the company can best be achieved by improving the existence of its consumers and the environments in which it operates[28].

Odebrecht’s CSR plans are relevant to the firm’s business model which is a decentralized one[29]. In that, since the business model is grounded on operating in diverse sectors it is its obligation to assist the society in developing and living more enhanced lives. In that, the company operates globally in markets that are characterized by differing cultures, needs and developments and since these communities offer markets for its services and a favorable environment to operate it is only ethical to support them in addressing their needs. In that, the company is focused on enhancing the lives of those that surround it to create wellness which is relevant to its business model which seeks to attract consumers from different markets. In this context, the community’s needs such as those related to conserving the environment should be addressed critically. This is because the general success of any company is determined by the health of the community that it operates in. This implies that if environmental measures are not taken then the health of the consumers can be affected and the spending will be switched to the health needs rather than development[30].

The company’s CSR sustainable goals are helpful but also sensibly attainable because the company has the resources to ensure that they are achieved. The company’s CSR objective is to ensure that its business conduct is performed in an ethical manner. This includes accounting for the economic, communal and environmental outcome of their activities as well as make consideration of human rights. For the company, this is achieved in several ways which involves working in collaboration with the communities while making investments that seeks to develop the community in general. In that, the sustainable development approach is based on the objective of improving the lives of those that are affected and for the communities that provide good markets for the company to operate in[31]. This goal can be achieved reasonably based on the model that the company utilizes.

The company’s CSR sustainability strategy was not adequately detailed and thorough because it failed to assert and also prevent the occurrence of the violation. In that, the sustainability strategy is one that was vague and briefly structured. In that, the company mainly focused on the maximization of the shareholder’s value rather than concentrating on the needs of the consumers and its development plans. If the strategy was detailed enough then it should have created a balance amid the issues and particularly focus on both its financial needs and the promise that it can make to the consumers. In that, the company failed to honor its sustainable promises and particularly choose to optimize its earnings. In this context, the company should have relied on a well-organized plan that seeks to heighten its own gains while upholding the needs of the community[32].

Unethical behaviors are bound to place in the organizations which might include stealing or briberies to acquire more valuable contracts like Odebrecht did. Unethical conducts are bound to harm the credibility of companies causing them to lose their consumers and finances. However, there are various alternatives that Odebrecht should have applied in order to prevent such a violation. To begin with, the firm should have created a conduct code that offered its workers and managers the overview of the kind of behaviors and practices that are acceptable. This code should highlight the kind of behaviors that should be followed and the measures that are to be utilized if the code is violated by any employee. Odebrecht corruption case makes it clear that the compliance policy was not descriptive enough as those that were involved in the unprofessional and deceptive practices are major executives. In that, the compliance code seems to have only been applicable to the subordinate’s workers while the executives would violate the code without any disciplinary measure. As the executives, they should have led as the example to offer directions to the rest on how they should have behaved[33]. The firm should also have prevented the event by reinforcing the consequences of unethical behaviors. In that, every worker should be held accountable for acting in an unacceptable manner[34]. The most suitable approach was to focus on developing an inclusive approach that does not segregate workers based on their positions.

Recommendations

In order for Odebrecht to improve its ethics compliance, it is proposed that it should create an include conduct code, reinforce consequences and hire based on values. This implies that the company should develop a more firm conduct code that will not segregate disciplinary measures based on the positions of the workers. In that, every employee is supposed to adhere to the set practices and any violation should be addressed accordingly. In order to make the strategy effective, the employees should be informed consistently in regard to the acceptable practices and behave as well as the measures to be applied in case the code is violated. In that, the consequences of any violation should be reinforced to ensure those that act in unacceptable ways are held responsible for their behaviors. The company should also create reward and appraisal programs that will seek to appreciate those that act ethically. Loyal employees are unlikely to behave in unethical ways and thus appreciating them in often basis can deter violations[35]. This can best be applied to employees hired based on their values rather than relationships.

Odebrecht can implement the recommendations by creating an accommodative environment and by engaging the employees in policymaking. It is much easier to ensure that all the employees are involved to avoid any form of resistant. The recommendations can be communicated to the workers by holding often meeting where the employees are also given the opportunity to respond to the raised thoughts and allow them to understand and accept them. In that employees need to feel that they are cared for and that their opinions count. This can also help in creating trust and better relationships. Managers should be in-charge of communicating and implementing the changes based on their control authority. These strategies can help in discouraging violations that particularly involves deceptive actions by encouraging ethical behaviors and transparency[36]. The company can create platforms where employees can raise their concerns while the company can be monitoring individual’s practices to ensure that they comply.

References

Casey, Nicholas and Zarate Andrea. 2017. Corruption Scandals with Brazilian Roots Cascade across Latin America. Retrieved from https://www.nytimes.com/2017/02/13/world/americas/peru-colombia-venezuela-brazil-odebrecht-scandal.html

Cooper, Anderson. 2017. Brazil's "Operation Car Wash" involves billions in bribes, scores of politicians. Retrieved from https://www.cbsnews.com/news/brazil-operation-car-wash-involves-billions-in-bribes-scores-of-politicians/

Cuvilceva, Marina. 2012. The importance and significance of Corporate Social Responsibility Reporting. Munich: GRIN Verlag GmbH. http://nbn-resolving.de/urn:nbn:de:101:1-201212205304.

Gallas, Daniel. 2017. Brazil's Odebrecht corruption scandal. Retrieved from http://www.bbc.co.uk/news/business-39194395

Horch Dan. 2015. Brazil Arrests Head of Odebrecht in Petrobras Scandal. Retrieved from https://www.nytimes.com/2015/06/20/business/international/brazil-arrests-head-ofodebrecht-in-petrobras-scandal.html

Milone, Pierluigi, Flaminia Ventura, and Jingzhong Ye. 2015. Constructing a new framework for rural development. Emerald.

Odebrecht. 2017. Odebrecht Annual report. Retrieve from http://www.fundacaoodebrecht.org.br/Midias/en/Publicacoes/Relatorios-Anuais/

Padgett, Tim. 2017. Brazil’s car wash scandals reveals country soaked in corruption. Retrieved from https://www.bloomberg.com/news/articles/2017-05-25/brazil-s-car-wash-scandal-reveals-a-country-soaked-in-corruption

Rubenfeld, Samuel & Kiernan Paul. 2016. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Retrieved from https://www.wsj.com/articles/odebrecht-to-pay-2-6-billion-to-settle-bribery-claims-1482325309

Sawyer, Donald. "Population and sustainable consumption in Brazil." Livros (2015): 225-254.

Simpson, Justine, and John R. Taylor. 2013. Corporate governance, ethics, and CSR. London: Kogan Page.

Spitzeck, Heiko, Claudio Boechat, and Sérgio França Leão. "Sustainability as a driver for innovation–towards a model of corporate social entrepreneurship at Odebrecht in Brazil." Corporate Governance 13, no. 5 (2013): 613-625.

Stevenson Alexandra and Sreeharsha Vinod. 2016. Secret Unit Helped Brazilian Company Bribe Government Officials. Retrieved from https://www.nytimes.com/2016/12/21/business/dealbook/odebrecht-brazil-company-bribe-kickback-braskem.html

Swanson, Diane L., and Dann G. Fisher. 2011. toward assessing business ethics education. Charlotte, N.C.: Information Age Pub.

Wilhelm Rang, Timo. 2010. The strategic importance of corporate social responsibility: competitive advantage or contemporary trend? Magdeburg: GRIN.

[1] Odebrecht. 2017. Odebrecht company overview. Retrieved from https://www.odebrecht.com/en/home

[2] Odebrecht. 2017. Odebrecht Annual report. Retrieve from http://www.fundacaoodebrecht.org.br/Midias/en/Publicacoes/Relatorios-Anuais/

[3]   Odebrecht. 2017. Odebrecht company overview. Retrieved from https://www.odebrecht.com/en/home

[4] Odebrecht. 2017. Odebrecht company overview. Retrieved from https://www.odebrecht.com/en/home

[5] Casey, Nicholas and Zarate Andrea. 2017. Corruption Scandals With Brazilian Roots Cascade Across Latin America. Retrieved from https://www.nytimes.com/2017/02/13/world/americas/peru-colombia-venezuela-brazil-odebrecht-scandal.html

[6] Gallas, Daniel. 2017. Brazil's Odebrecht corruption scandal. Retrieved from http://www.bbc.co.uk/news/business-39194395

[7] Cooper, Anderson. 2017. Brazil's "Operation Car Wash" involves billions in bribes, scores of politicians. Retrieved from https://www.cbsnews.com/news/brazil-operation-car-wash-involves-billions-in-bribes-scores-of-politicians/

[8] Cooper, Anderson. 2017. Brazil's "Operation Car Wash" involves billions in bribes, scores of politicians. Retrieved from https://www.cbsnews.com/news/brazil-operation-car-wash-involves-billions-in-bribes-scores-of-politicians/

[9] Casey, Nicholas and Zarate Andrea. 2017. Corruption Scandals With Brazilian Roots Cascade Across Latin America. Retrieved from https://www.nytimes.com/2017/02/13/world/americas/peru-colombia-venezuela-brazil-odebrecht-scandal.html

[10] Gallas, Daniel. 2017. Brazil's Odebrecht corruption scandal. Retrieved from http://www.bbc.co.uk/news/business-39194395

[12] Gallas, Daniel. 2017. Brazil's Odebrecht corruption scandal. Retrieved from http://www.bbc.co.uk/news/business-39194395

[13] Cooper, Anderson. 2017. Brazil's "Operation Car Wash" involves billions in bribes, scores of politicians. Retrieved from https://www.cbsnews.com/news/brazil-operation-car-wash-involves-billions-in-bribes-scores-of-politicians/

[14] Horch Dan. 2015. Brazil Arrests Head of Odebrecht in Petrobras Scandal. Retrieved from https://www.nytimes.com/2015/06/20/business/international/brazil-arrests-head-ofodebrecht-in-petrobras-scandal.html

[15] Horch Dan. 2015. Brazil Arrests Head of Odebrecht in Petrobras Scandal. Retrieved from https://www.nytimes.com/2015/06/20/business/international/brazil-arrests-head-ofodebrecht-in-petrobras-scandal.html

[16] Stevenson Alexandra and Sreeharsha Vinod. 2016. Secret Unit Helped Brazilian Company Bribe Government Officials. Retrieved from https://www.nytimes.com/2016/12/21/business/dealbook/odebrecht-brazil-company-bribe-kickback-braskem.html

[17] Padgett, Tim. 2017. Brazil’s car wash scandals reveals country soaked in corruption. Retrieved from https://www.bloomberg.com/news/articles/2017-05-25/brazil-s-car-wash-scandal-reveals-a-country-soaked-in-corruption

[18] Horch Dan. 2015. Brazil Arrests Head of Odebrecht in Petrobras Scandal. Retrieved from https://www.nytimes.com/2015/06/20/business/international/brazil-arrests-head-ofodebrecht-in-petrobras-scandal.html

[19] Padgett, Tim. 2017. Brazil’s car wash scandals reveals country soaked in corruption. Retrieved from https://www.bloomberg.com/news/articles/2017-05-25/brazil-s-car-wash-scandal-reveals-a-country-soaked-in-corruption

[20] Padgett, Tim. 2017. Brazil’s car wash scandals reveals country soaked in corruption. Retrieved from https://www.bloomberg.com/news/articles/2017-05-25/brazil-s-car-wash-scandal-reveals-a-country-soaked-in-corruption

[21] Rubenfeld, Samuel & Kiernan Paul. 2016. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Retrieved from https://www.wsj.com/articles/odebrecht-to-pay-2-6-billion-to-settle-bribery-claims-1482325309

[22] Horch Dan. 2015. Brazil Arrests Head of Odebrecht in Petrobras Scandal. Retrieved from https://www.nytimes.com/2015/06/20/business/international/brazil-arrests-head-ofodebrecht-in-petrobras-scandal.html

[23] Swanson, Diane L., and Dann G. Fisher. 2011. Toward assessing business ethics education. Charlotte, N.C.: Information Age Pub.

[24] Rubenfeld, Samuel & Kiernan Paul. 2016. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Retrieved from https://www.wsj.com/articles/odebrecht-to-pay-2-6-billion-to-settle-bribery-claims-1482325309

[25] Padgett, Tim. 2017. Brazil’s car wash scandals reveals country soaked in corruption. Retrieved from https://www.bloomberg.com/news/articles/2017-05-25/brazil-s-car-wash-scandal-reveals-a-country-soaked-in-corruption

[26] Spitzeck, Heiko, Claudio Boechat, and Sérgio França Leão. "Sustainability as a driver for innovation–towards a model of corporate social entrepreneurship at Odebrecht in Brazil." Corporate Governance 13, no. 5 (2013): 613-625.

[27] Spitzeck, Heiko, Claudio Boechat, and Sérgio França Leão. "Sustainability as a driver for innovation–towards a model of corporate social entrepreneurship at Odebrecht in Brazil." Corporate Governance 13, no. 5 (2013): 613-625.

[28] Swanson, Diane L., and Dann G. Fisher. 2011. Toward assessing business ethics education. Charlotte, N.C.: Information Age Pub.

[29] Rubenfeld, Samuel & Kiernan Paul. 2016. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Brazil’s Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case. Retrieved from https://www.wsj.com/articles/odebrecht-to-pay-2-6-billion-to-settle-bribery-claims-1482325309

[30] Sawyer, Donald. "Population and sustainable consumption in Brazil." Livros (2015): 225-254

[31] Milone, Pierluigi, Flaminia Ventura, and Jingzhong Ye. 2015. Constructing a new framework for rural development. Emerald.

[32] Wilhelm Rang, Timo. 2010. The strategic importance of corporate social responsibility: competitive advantage or contemporary trend? Magdeburg: GRIN.

[33] Cuvilceva, Marina. 2012. The importance and significance of Corporate Social Responsibility Reporting. Munich: GRIN Verlag GmbH

[34] Milone, Pierluigi, Flaminia Ventura, and Jingzhong Ye. 2015. Constructing a new framework for rural development. Emerald.

[35] Simpson, Justine, and John R. Taylor. 2013. Corporate governance, ethics, and CSR. London: Kogan Page.

[36] Cuvilceva, Marina. 2012. The importance and significance of Corporate Social Responsibility Reporting. Munich: GRIN Verlag GmbH

Strategy and globalization

Abstract

When a cooperation expands into a foreign country, there a number of problems that it is likely to encounter such as contrast in culture. Culture includes differences in language, religion, population and social standards. The more a cooperation knows about the mode of approach, the more likely they are to achieve success in foreign geographical market. In the past research has been carried out on how to handle new emerging markets as well as the specific way of dealing with launching of products for the first time in foreign market. The authors who carried out this research include Geert Hofstede and Hollensen (2007) among others.

1

I am consultant for a food and beverage Cooperation that is interested in expanding its market in India. One of the strategies that I have put in place to ensure that the food and beverage company becomes a success on entry into the Indian market is culture considerations that the products should meet in order to launch successfully in the foreign market. I have looked at culture and divided them into preferences, language, regional practices and behavioral patterns to help in the modification process.

Language

Language can act as a barrier if not handled correctly and needs to be translated to mean exactly what it was meant to mean without any distortions. Indians speak both English and Hindi therefore I should translate and advertise in both languages. In rural areas where English is not spoken and understood by many, the advertisements can be in form of pictures and less of English words as compared to areas where English is well spoken by the majority. This approach will surpass language by enabling both visual and language understanding (Hofstede, 2000)  

Preference

Another modification that I should make is based on preference. What do the people of India prefer when it comes to food and beverages? Are most of them vegetarians or do they love meat and vegetables in equal measure? If the answers to these questions are positive, quick adjustment should be made accordingly. For example in India, beef is viewed as forbidden therefore, it is wise to put in place changes that will accommodate more regional and vegetarian  type of food and beverages ( Hofstede, 2000).

Regional practices

They can be brought into existence by a group that speaks a different language from the citizens creating different practices in culture .In India, difference in regional practices can be brought about by the modern and conservative societies. Modern Indians can consume any food and beverage as long as it has been well presented and cooked to them. Conservative Indians are more likely to be inclined towards more traditional foods such as vegetables .Therefore, when marketing, I should consider regional practices. Locations where conservatives are likely to be more, the marketing strategy should be geared toward vegetables and more locally Indian food and vice versa. Hofstede, 2000)

Behavioral patterns and age

Behavioral patterns and age shapes and influence cultures of the world. I can use behavior and age to strategize and know personality of the population. Before marketing food and beverages cooperation in India begins, I need to decide whether the society is a liberal society or a collective society where a group has the most command on buying food and beverages. Hofstede, 2000)

2

Expatriates should first understand the language of the country they are in, in this case, India. It will make communication easier and enable cross-cultural communication with other Indian employees. Learning the language gives the basis for the interpretation of body language among other face to face none verbal cues associated with the language .Communication gives direction to the functions performed at an organization. For the food and beverage company to be successful in India I need to come up with efficient and effective external and internal communication systems. Expatriates should also consider code of conduct and good ethics. They should avoid bribery, sexual abusive language and harassment of the locals. This will help in creating a conducive atmosphere for conducting business thus increasing productivity. Good ethics creates a level playing field for doing business that enable the company to succeed. (Wankel, & Malleck, 2012)

Human resource policies can be integrated with the local polices. The most fundamental step to integration that I should encourage, is treating everyone equally. The managers should be treated equally and not favored based on the cooperation‘s country. The mentality of ‘us against them’ can be disadvantageous to the company as people who feel discriminated against may not give their best. Equality will help in fighting xenophobia and give other nationals a chance to sit at the board and give a different perspective of the host country to other board members. Where human polices cannot be integrated, training programs can be conducted to suit the workforce of the cooperation. Training programs help to strengthen and build new talents that will see productivity increase. The exchange of knowledge and good company practices will be cost effective and help me in reducing the expenses associated with the process of hiring. Local policies that allow the cooperation to grow within the foreign country together with the employee, I should adopt and execute them strategically. This will help the cooperation to grow in the foreign country and gain success (Iles, 2013).

3

Recommendations

Blending with the local culture is an important aspect of gaining mileage in the Indian communities but I should handle it with a lot of care. I must not completely act like the locals’ but should be flexible enough to cater to the needs of the local market without any hindrance. When a company acts global it sends a message that they are seasonal business people hence creating a unique atmosphere that allows locals to engage in .I should indulge with the foreign market based on the quality of the product I offer more than the effort I put to be assimilated into the community. In any society, quality   surpass any language barrier. The best approach for a food and beverage company to succeed in India is through franchising. Franchising will be less costly and will easily adopt into the environment with less expatriates. Franchising will peak easily compared to starting the business a fresh (Trompenaars, & Hampden-Turner, 2012).

Conclusion

Culture of any foreign market can be concurred by understanding their language, preferences, behavioral patterns and age. By understanding the culture, the product can easily be sold to the market and gain traction with time. Expatriates should practice equality and good ethics that will give the cooperation good public relations image.

References

Browaeys, M.-J., & Price, R. (2015). Understanding cross-cultural management. Harlow, England.

Hofstede, G. H. (2000). Culture's consequences: International differences in work-related values. Beverly Hills, Cal. [u.a.: Sage Publ.

Iles, P. (2013). International human resource management: A cross-cultural and comparative approach. London: Chartered Inst. of Personnel and Development.

Trompenaars, A., & Hampden-Turner, C. (2012). Riding the waves of culture: Understanding diversity in global business. London: Nicholas Brealey.

Wankel, C., & Malleck, S. K. (2012). Ethical models and applications of globalization: Cultural, socio-political and economic perspectives. Hershey, PA: Information Science Reference.

Discussion board post

 It is important for organizational members to understand the leadership style which the leaders are using. Leadership style is a process where leaders cause social influence and assists employees in achieving goals (Pride, Hughes & Kapoor, 2010).  Note that in using specific styles, the role of a leader is to evaluate the complexities affection the organization and influencing members in changing goals. Leadership style has a big impact on organization’s performance.  In addition, leadership style improves employees’ performance such as increasing commitment, improving competency and maximizing performance. Given  that leadership style ensures that leaders develops a  voluntary participation and employs  unique ways of  improving performance, it is   important for employee to understand the specific style. This is because, by recognizing the style employees develop positive perceptions which guides toward satisfaction, positive behaviors and higher performance (Pride, Hughes & Kapoor, 2010).

            For example, when employees recognize that a leader is using transactional style, they will improve performance on order to receive the reward and avoid punishment.  In addition, when employees recognize transformational style, they will strive to act in a positive way, adhere to morality and ethics, and solve problems and work hard to achieve the goals and vision for the befit of the organization (Pride, Hughes & Kapoor, 2010). Thus, effective leaders should offer guidance to the employees by setting clear standards related to a particular style in order to improve performance. Note that organization face challenges such as poor innovation, poor performance and lack of profitability. The root cause of the challenges is failure of leaders to implement strategic intervention based on core values in particular styles of leadership (Pride, Hughes & Kapoor, 2010). Note that employee performance is influenced by styles and behaviors.  Since employees work in different department within organization, it is important for them to recognize the style e as well as different traits in order to improve performance.  For example in autocratic style, employee will understand that   they have responsibility and accountability to adhere to the rules made by leaders. In participative style, employees will understand that they have a role in making decisions and share opinions. Through an open communication and interaction, employees develop a sense of belonging, satisfaction, creativity and performance (Pride, Hughes & Kapoor, 2010).

Reference

Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2010). Business. Australia: SouthWestern/Cengage Learning.

Memorandum

To: 

From: Assistant Manager, Travel

Date: 

Subject:  Information on the selection of the best city for new office location

The selection Committee for new regional office site has carried out a research on the best cities that the new regional office should be located. The committee has provided various proposed sites for locating the new office. The expectation among the members is that significant commercial air traffic between our headquarters and the new regional location.

It is expected that trips per year between the cities will be over 1200 and over fifty percent of the tickets include the advanced purchases and the rest includes the immediate travel.  The majority part of the data should be for the direct flights since most of the personnel are expected to travel over the week days.  The high travel volume expected will provide an opportunity for better negotiation on fare plan with the willing air carriers serving the city and Houston city. Since the negotiation is expected in future, the focus currently is the city with better conditions for travelling.  Understanding the cities providing the best conditions for the travel will be important for coordination of activities between the head office and the new office and this is important for the business.

 The best cities that have been suggested for the new office includes Melbourne – Florida,  City of Flagstaff – Arizona and City of Columbus in Ohio. The cities are given as suggestion but with more information about the travelling conditions, the best option can be located. The travel conditions are used as a criterion for the selection of the best city to locate the new offices

Entry Strategy and Structure for Walmart to Expand To Vietnam

Executive Summary

There are several entry strategies that companies should utilize when expanding to fresh emerging markets such as strategic alliances, acquisition, joint ventures, franchising, licensing and so on. However, for Walmart when expanding abroad should assess whether the foreign Vietnam market where it intends to move to has the potential to grow. This report is mainly aimed at conducting a thorough evaluation of the suitable entry strategy and organizational structure for Walmart Corporation to get into the retailing market in Vietnam.  

The report proposes that for Walmart’s expansion into Vietnam Joint venture and Joint marketing are the most suitable legal entry strategy along with a functional organizational structure which is all objected at creating a strategic positioning for the company. The report concluded that joint venture and functional structures of Vietnam are the most effective based on the high influence of government, economic and competitive influences in the market. Walmart’s entry strategies in foreign markets are mainly influenced by economic and governmental regulation. In that, the company tends to perform better in markets where governmental regulations are accommodative to its growth. More so, strategic marketing and operation, availability and availability of resources are the primary driving factors of the company’s decision when getting into fresh markets. The firm mainly expands its retailing operations in the markets characterized by high revenue potential and produces consistent retailing demand. From the analysis, it was concluded that the promotion of foreign investments by the government in Vietnam is an essential force that Walmart will consider while engaging in a joint venture.

Walmart being the retailing leader in the globe needs to retain its competitive advantage by expanding into other markets which are less exploited such as Vietnam. Since the company has already positioned itself as the cost leading leader it should extend this value to the Vietnam market. However, based on the intense competition in the market from the local and foreign firms it has been proposed that Walmart should also use diversification as its differentiation approach to attract more potential consumers. The target consumers being low to middle-class individuals demonstrates the need to be both different and strategic. In that, these consumers are highly sensitive to prices and quality and thus, the firm will focus on affordability, quality, and convenience as its primary values to entice its consumers. The retailing market is currently experiencing rapid growth, particularly in the emerging markets since most of the well-established retailing firms are seeking for more enhanced strategic positioning and stability. In this context, it is apparent that Walmart should strategically expand into Vietnam to capture the untapped market to fight against the increasing competition and retain their competitive position.

The report recommends the integration of a joint venture and Functional organizational structure to being the most potential approaches as compared to a joint venture. This strategic structures will mainly seek to generate an extensive market for the firm to affirm its position in the global environment. Join venture was particularly recommended as the suitable entry strategy into Vietnam over joint marketing based on its benefits. In that Walmart has no practical experience in Vietnam and thus focusing on joint venture will seek to create long-run inclusive benefits. In that rather than focusing on marketing operations ventures which will be for a short while the company can utilize joint ventures to strategically situate itself in the market. This strategy will not only offer the firm with adequate skills to operate in the market but it will be essential in mitigating the existing risks. This is because Walmart is focused on operating under minimal expenses and with the uncertainties in a new market this can be particularly hard for the company. This means that operating under joint venture will offer more operating resources, lead to increased revenue generation and high marketing ability which will be creating awareness and familiarity uniformly.

It cannot be denied that Walmart will need to invest more with respect to marketing but joint marketing will only seek to create awareness of the existence of the company without mitigating financial risks. Under the joint venture, Walmart will adequately divide its resources while supporting low expenses goal. In that in order for the affordability value to be achieved then the company need to operate under low expenses which cannot be achieved under joint marketing. The functional business structure was selected for this expansion because it is appropriate for small businesses or for those that are focused on a single product specialty. Since Walmart will be operating is a stable market then the functional structure will be effective. The specialty groups for Walmart will include Marketing, operations, account, IT and Purchasing and sales departments. This structure is essential in creating efficiency as well as focusing competitive positioning. This is because the operations will be conducted on departmental basis and staffs will be allocated based on their skills to avoid inconveniences and encourage innovation. Joint venture and functional organizational structures are the recommended entries for Walmart’s expansion into Vietnam electronic specialty market which will all seek to strategically position the company in the market.

Economic analysis

The Tap island corn farmers were operating in a perfect competition market structure before Mega Company got into the corn industry. Perfect competition refers to a market structure with many small sellers who are competing against one another such that the action of one firm does not have considerable power in the market. In this market, the firms sell identical products and consumer preference does not exist, while firms can freely enter and exit the market (Gottheil, 2013). The Tap Island market is made of farmers cum sellers with identical type of corn which means that the buyers in this market do not have different choices of the product and hence, cannot develop preference. Moreover, the sellers compete fiercely as they try to market undifferentiated product in the market which brings the prices low.

When Mega Company enters the market and buys the corn from the farmers for packaging and then reselling, the market structure changes completely to a monopoly. In monopoly structure, the market has a single firm with control over the whole market so that it has the highest degree of market power. In addition, the firm is the only one selling the product which means that consumers have no alternative. The monopolistic firm has the power to increase the market prices of the product so as to earn more profits. A monopolistic firm sets the market prices and dominates the market so that there is not competition (Gottheil, 2013). By buying all the corns from the farmers and processing it to sell in the market, it starts to increase the prices in the market as seen by the Tapese.

Reference

Gottheil, F. (2013). Principles of macroeconomics. Nelson Education.

Appreciative Inquiry

            Case Assignment

            Scenario 1

In this scenario, the banking institution is trailing money since the banking has engaged in high lending activities but the debtors have not been able to repay but the back is not certain on the reason behind this occurrence. The bank is therefore required to come up with an effective and practicable solution sooner to fix this debt repayment concern or else it will be pushed out of business. With this in mind, it is apparent that the bank is limited by time and for this reason, it is not recommendable for the institution to use appreciative inquiry strategy rather the team should utilize a more conventional organizational development strategy.

Based on the background resources in regard to App recitative Inquiry Approach (AI), I learned that this approach is characterized by distinct benefits but does not work best when it is required to quickly resolve issues due to time limitation. According to Bushe (2011), AI does not cost effective as it requires more time to intervene and resolve issues when equated to other forms of strategies.  In addition, AI is not an appropriate tool to utilize while trying to identify solutions to a specific issue (Whitney & Trosten-Bloom, 2010). In that, the bank is in need of resolving the existing financial issue that has been fueled by the lack of debt payments. The problem is, therefore, clear even though the root cause of the lack of repayment by the debtors is uncertain which makes AI as an inappropriate approach.

The bank should, therefore, adopt a traditional approach to establish the primary cause of the monetary losses based on debts and try to solve the organizational problem using a more straightforward approach that will require less time. This will ensure that the bank does not also fall into such a scenario in the future that involves money and profits loss. The use of a traditional approach is based on the identification of the issue, causes evaluation, potential solutions analysis and action organization (Bushe, 2011). This is the exact approach that the bank needs in resolving the problem speedily and to begin remedial actions in order to end the wave of revenue losses (Whitney & Trosten-Bloom, 2010).

Scenario 2

In this scenario, there is a screenplay team that has been working collaboratively for a decade and despite them having enjoyed high ratings the last two years have been difficult for everyone based on the declining rating. Based on the poor relationships and the lack of collaboration among the team members it is apparent that a solution is needed to resolve the issue and focus on the high rating. In this case, since the issue is particularly known the team can utilize Appreciative Inquiry Approach in solving this issue. This is because unlike the traditional development model that focuses on identifying the existing issue AI will be utilized on settling for the best solution since the issue is well known. AI is additional essential because it encourages positive revolution in order for transformation to prevail (Tricia, 2010). This approach mainly inspires enthusiasm and vigor something that seems to be lacking among the team members (Gohil & Deshpande, 2014). The team needs to be encouraged to focus on change by working collaboratively as before in order to increase the performance and productivity of the team which will, in turn, leads to a better rating.

One of the primary belief of AI is that the resources and information that is required in renewing the working organization, selves and society are within (Tricia, 2010). This differs from the traditional approach which depends on professional knowledge to recommend as well as create solutions (Tricia, 2010). What the screenplay team needs is not a solution that will only lead to higher rating but also the inspirations of working collaboratively to achieve high.  Without the cooperation, it is apparent that even if a solution to the rating problem is developed there will be no motivation or enthusiasm to achieve high and to work collaboratively in dealing with such issues in the future. This team needs a long run solution which favors AI rather than the traditional one. AI is grounded on the notion that individuals have a choice in regard to how they view the surrounding and act against the existing issues (Gohil & Deshpande, 2014).

Scenario 3

In this scenario, a social networking company is characterized by financial stability based on the money acquired from investors and is headed by experienced and highly motivated employees. However, despite the stability of the business in the few months that management team has led company they all feel that not all is well and they have the potential to work better. I do believe that the team can utilize AI to ensure that the strengths held by the team are used in building their success and improve these competencies even more. This is because AI is very effective for team building that involves collaboration and the cooperation which the team needs (Whitney & Trosten-Bloom, 2010). In addition, by definition, AI is grounded on the notion that any organization is bound to grow in any given direction in which those that are involved choose, concentrate and guide their attention (Whitney & Trosten-Bloom, 2010).

Since the company has financial stability and the team is comprised of members who are highly experienced, knowledgeable and motivated it is clear that all they need is a clear direction to focus on for the success of the firm. In this context, all that is required is the capability, enthusiasm and the energy to move in the same direction by combining their strengths. In this context, it is apparent that AI is the most suitable approach which is focused on transformation and developing the existing strengths rather than faults. The traditional approach is not appropriate for the scenario because there is no problem in the organization rather a strategic direction is needed so that the existing competencies can be focused on success (Gohil & Deshpande, 2014). The team is required to work collaboratively and in order to sustain their motivation and energy, I believe that AI is the most appropriate approach.

Scenario 4

In this scenario, the team believes that the created vision by AI consultant is unfeasible and in my opinion, the thing that went wrong is that the focused on AI implementation rather than trying to establish the actual issues. In that, the consultant went ahead to develop a vision without examining any existing issues.  The consultant should have begun by establishing the existing issue along with the team’s competencies and weaknesses. After this, he should have focused on evaluating several solutions that would solve the issue, plan for an action implementation and then create a feasible solution through the solution.

 In that, it would have been better if the consultation began by trying to establish what they needed to achieve and why they believed that it was important for them (Whitney & Trosten-Bloom, 2010). From AI principles it is important to note that the consultation should begin by trying to discover which involves highlighting the positive competences of the team (Gohil & Deshpande, 2014). This is followed by envisioning and reflection of what should be achieved then designing what is desired based on the identified competencies and then developing an action plan to be utilized (Gohil & Deshpande, 2014). In this context, the consultant failed to consider the primary competences of the team when he developed the vision that appeared to be unrealistic.

References

Bushe, G. R. (2011). Appreciative inquiry: Theory and critique. The Routledge companion to organizational change, 87-103.

Gohil, S., & Deshpande, P. (2014). A framework to map a practice as organization development. Procedia Economics and Finance, 11, 218-229.

Tricia K. (2010). A Positive Approach to Change: The Role of Appreciative Inquiry in Library and Information Organizations. Australian Academic & Research Libraries, 41:3, 163-177, DOI: 10.1080/00048623.2010.10721461

Whitney, D. D., & Trosten-Bloom, A. (2010). The power of appreciative inquiry: A practical guide to positive change. Berrett-Koehler Publishers.

SLP Appreciative Inquiry

            Question 1

I once worked with a team that functioned quite well in general based on several positive but also negative aspects. To begin with, the primary positive aspect of the team is that everyone participated actively and desirably during developments or meetings which inspired and motivated everyone to strive even high. In that in cases where some issues arose everyone actively provided creative solutions and a proper channel was particularly utilized that was very inclusive. The group was more focused on outcomes and the set goal rather than the general work that was being achieved. This involved having a concise plan in regard to how each of these goals would be achieved and the role that each individual would play. Everyone should contribute more definitely which helps in balancing the existing diversity with the support of everyone (Bannister, Wickenheiser, Keegan, 2014). For instance, one time that the team performed well was when the members were involved in a crisis since the person who had been keeping records had failed to maintain records leading to financial losses and some members were willing to exit. However, the members through discussions agreed to dismiss those that were involved to encourage trust. In addition, conflicts would be solved without biases in order to discourage low motivation and misunderstandings.

In my opinion, I do believe that these stories can work in AI approach in developing a suitable plan to improve the general performance of a team. In that AI is centered on creating a more focused motivation, energy, and enthusiasm among teams. While working collaboratively conflicts can never be avoided and thus AI can be utilized to create a plan that the members can focus on in achieving success for the long run (Bannister, Wickenheiser, Keegan, 2014). This approach utilizes the competences of the team to create an action plan thus encouraging high performance. Effective teams are able to sustain consistent communication Susan L. (Bannister, Wickenheiser, Keegan, 2014).

Question 2

The efficiency and performance of a team are tested based on the production and transformations that the team creates rather than the amount of work that it performs. It is not the amount of work that mainly counts rather it is the general production or the outcome that matters (Fifolt & Lander, 2013). If the outcome is positive and that matches with the goals of this team then it can be said to be effective. On the other hand, the best performance is the one that seeks to improve the positioning of the team by ensuring that the set objectives are achieved (Gohil & Deshpande, 2014). In this success, every member should have made a share and the success should be an inclusive one.  If the issues that affect the team are not known or are from diverse sources and a quick solution is required for sustainability and success than a traditional development model can be useful in the establishment of the existing issues and also try to propose means through the performance of the team can be improved. This is because the model is mainly essential in identifying problems their primary causes and the most suitable solution (Gohil & Deshpande, 2014). In this context after the problem has been established and suitable solutions proposed this then implies that the team will be motivated to achieve even high. Traditional models are more appropriate for such teams based on the need for cost, time efficiency and the limitation of time (Gohil & Deshpande, 2014). In other words, the problems are minor but they need an immediate solution so that the performance of the team can be upheld (Fifolt & Lander, 2013).

Question 3

It is apparent that both AI and traditional development model are essential in creating positive transformation within teams by ensuring high performance as well as efficiency. However, in my opinion for this team, I do believe that a Traditional Organizational Development Model would be more suitable for the team. In that, the issues are particularly minor but the sources of such issues are not well known which in general implies that the issues, the team’s competences, and weaknesses should be established prior to developing visions and the most suitable action plan (Gohil & Deshpande, 2014). In that most teams normally fail because they are not objective and that they are not focused on a single direction (Gohil & Deshpande, 2014). Appreciative Inquiry model is not suitable for this team because it requires more time and is more suitable where the issue is certainly known. In addition, it cannot be forgotten that the consultation might be expensive which is not convenient for small and not fully recognized teams (Fifolt & Lander, 2013). If my team was to find a consultant it would mainly focus on a traditional development consultant. This is because all that the team would require is to establish all that it wants to accomplish and design strategies that would position it in better achievements (Fifolt & Lander, 2013). In addition, the method is appropriate for the long run benefits and is more efficient in regard to time and cost (Bannister, Wickenheiser, Keegan, 2014).

References

Fifolt, M., & Lander, L. (2013). Cultivating Change Using Appreciative Inquiry. New Directions for Student Services, 2013(143), 19-30. doi:10.1002/ss.20056

Gohil, S., & Deshpande, P. (2014). A framework to map a practice as organization development. Procedia Economics and Finance, 11, 218-229.

Susan L. Bannister, Hayley M. Wickenheiser, David A. Keegan. (2014). Key Elements of Highly Effective Teams. Retrieved from http://pediatrics.aappublications.org/content/133/2/184

The Importance of Goal Setting"   Please respond to the following:

1. Provide one (1) specific scenario of an employee using goal-setting to increase work motivation and task performance, reduce stress, and improve the accuracy of performance evaluation. 

Setting goals is significant for increasing work enthusiasm, and task performance, hence leading to reduction in stress thus increasing accuracy and performance evaluation. Setting goals is consequently linked to a higher business performance which reduce stress. Goals provide guidelines, responsible for improving the quality of work, thus relieving stress.    

"How to Form and Manage Teams"   Please respond to the following:

2. Watch the video from Karl McDonnell, CEO of Strayer University, titled “What behaviors do you look for when building your teams?” Discuss what you believe are the most critical things to consider when forming a team. Describe how this may or may not be different from what you thought prior to your readings and watching this video. Give an example of a time when you were on a team that was either well-formed or poorly-formed and give two to three (2-3) reasons as to why you feel this way.

When forming a team consider the following, tolerance, track record, and curiosity. This is same to what I thought, tolerant people are curios, hence offering their best in a team. I was once in a disorganized team, which achieved nothing, due to intolerance, making everybody to give up.