International Hotel Management

1. Executive Summary

            The managing director at Taj Hotel Krishna Kumar is expected to make a verdict on whether a promotion choice made earlier should be reassessed. In order for the organization to achieve supreme service quality level that fits within the international principles within the company’s Indian based branch.  The managing director had initiated fresh personnel performance management methods at the organization. In this regard, the board was obligated to make decisions on whether the company’s administrators deserved elevations to higher positions for better operations and to facilitate international growth and efficiency. This created a conflict amid the managing director and the company’s COO who requested that the decision by the board should be inverted. In this context, given that the COO is an esteemed official Kumar is torn amid respecting the choice by the board or embracing the suggestion to reconsider the decision for the betterment of the company.

2. Brief Overview of Key Case Facts

            The international company Taj operated for several financial years without dignified procedures for assessing, enhancing and tracking employees conduct and operations. In order to facilitate its growth in the international market, it became a necessity for the company to enhance services delivery (Delong & Vijayaraghavan, 2002). This was the case because the organization is mainly focused on creating consumer satisfaction by delivering quality at meeting preferences and demands of its diverse consumers. Being a consumer-centric organization the managing director established the need for performance evaluation which would help in the identification of training and promotion needs. The HRM department, therefore, implemented a fresh performance model that was more focused on services and operations development (Delong & Vijayaraghavan, 2002).

            To begin with, despite the fact that the model was introduced in the quest of delivering fair performance review on every staff in the organization, it was expected to identify development opportunities (Delong & Vijayaraghavan, 2002). In this, context employees would be involved in training as well as promotions as a mode of supporting better and higher development and productivity. This is a strategy that created more clearness something that worried the executives. In that, the model was not only associated with benefits given that there were several costs in return given that the culture would be altered to fit into the fresh demands. In addition, given that the company was characterized by more staffs than required this meant that based on performance some staffs would get into voluntary exit something that was not easy for the administrators given that its values would be affected. Most of them stated that the system worked against its strong value on employee’s contributions and role (Delong & Vijayaraghavan, 2002). The company had created good relationships with the workforce and even went further to re-accommodate those that had retired to the Indian chain to maintain this relationship and such moves would destroy its image, performance as well as revenue.

3. Identification of the Case Problem or Central Issue

            Given that the organization has introduced a performance evaluation model that seeks to promote skills development and employee’s promotion the central issue seems to revolve around whether the current strategies for appraisal and managers promotions are operative and reliable. In addition, the company is more focused on delivering superior services to all its consumer's something that cannot be achieved without an operative and motivated workforce. This became its major focus given that the violent growth under Kerkar guidance led to quality deterioration which in turn affected consumer satisfaction and revenue generation (Delong & Vijayaraghavan, 2002). Despite the rising concerns that the system will destroy relationships amid staffs and the administration, the company is already overstaffed which hinders its revenue generation growth and leads to high costs of operations. With it revenue status it is apparent that the company cannot afford to accommodate more staffs despite the fact that its salary rate is quite low when being equated with the average rates in the hotel industry (Delong & Vijayaraghavan, 2002).

            In the quest of achieving quality in India and increasing its revenue generation, it became apparent that the fresh manager’s evaluation model required more modifications to retain a desirable image and performance. Besides the fact that managers were not willing to alternate the new system lacked expertise guidance. In that, the model was mainly seeking to create better evaluation grounds and to award those that were performing better with promotions but failed to acknowledge the fact that other systems were required to support and enhance their skills. The system was not implemented professionally which implies that the underlining threats were not highlighted to establish how best it should have been implemented to overcome the resistance and performance hurdles. The system created more threats given that the expectations from the company’s consumers would not be met in accordance (Delong & Vijayaraghavan, 2002).

4. Discussion of 2-3 Alternative Solutions to Resolve the Problem

The company’s main concerns lie on quality and performance assessment. In that, the company should first ensure that the performance evaluation model is implemented with the guidance of an expert. In that, it should note the benefits and the disadvantages in order to make a more informed decision. In addition, it is worth noting that the ratio amid employees and staffs should be balanced given that overstaffing leads to high operating expenses thus affecting the general revenue generation of the company. Achieving international standards demands transparent and accurate decisions from the company (Feng Stocklin & Wang, 2015). In this context, a balance should be created amongst the capability to achieving transformation, employee’s association’s value and familiarity.

In addition, the board’s decision should be inverted given that the company is more focused on internal promotions, training, and skills enhancement for a healthier attitude. In addition, the promotion strategy is mainly guided by personal interests rather than the capability of the managers to relate well with the workers and operational responsibilities. The company should, therefore, focus on performance evaluation that seeks to establish development and training opportunities. This will be essential in supporting its quality goal given that the employees will be highly skilled in the operations rather than focusing on promotions (Feng Stocklin & Wang, 2015).

5. Selection of the Preferred Solution and Explanation of How It Solves the Problem

            It is apparent that the Taj Hotel is a consumer and employee centered organization. In this case, in order to improve its quality status, it should not be focusing on promotions given that is objective revolves around improving performance and productivity to fit into its consumer’s demands. The best solution which is both effective and feasible is to implement a performance system with the guidance of an expert. The system should not only be objected at evaluating the general performance of the staffs but should identify training opportunities that will protect the company’s image as well as increase the performance of all its staff. In this context, providing training to the staff will provide more expansion opportunities by creating a quality product that is grounded in the consumers’ needs in general (Enz, 2010). In turn, quality will be achieved along with consumers and workers satisfaction which is equivalent to efficiency.

References

Enz, C. A. (2010). Hospitality strategic management: Concepts and cases. Hoboken, N.J: John    Wiley & Sons.

Feng, J., Stocklin, S., & Wang, W. (2015). Educational strategies for the next generation leaders in hotel management. Hershey Publishing.

Thomas J. Delong & Vijayaraghavan, V. (2002). Taj Hotel Group. Havard School Business         Publishing. Pp. 1- 11. Pdf.

Table of Contents

Walmart Risk and Opportunity Analysis using Porter’s Five Model 1

Walmart Position in the Industry. 1

Walmart Porter’s Five Forces Analysis. 2

Rivalry among the Operating Firms. 2

Substitute’s Threats. 3

Walmart’s Suppliers Bargaining Power. 4

Buyer’s Bargaining Power 5

New Entrants Threats. 5

Technology Trends and Government Influences. 6

Strategy Implications and Recommendations. 6

Conclusion. 7

References. 7

Corporate policy on fostering creative thinking

Apple Inc.

Apple Inc. is a multinational firm headquarters in California, United States and operates in the technology industry. The firm’s operations include designing, developing and selling different products including computers software, consumer electronics and online services.  There is a constant need for the firm to remain creative in the products it provides in a market that is highly dynamic in terms of innovation. A corporate culture that enhances creative thinking is necessary for the production and technical teams to whom this policy is targeted. The individuals and team working in this section need to operate in a culture that motivates their innovative capabilities for the firm to remain competitive.

 Creative thinking forms the basis of innovation and it is important in meeting the different challenges experienced in a corporate environment that is rapidly changing.  Research has shown that creativity is a very important feature of any firm that wants to be a leader in the future. Even though Apple has been identified as being among the best creative organization, there is a need to retain and improve this area so that the firm can have a competitive edge over its rivals in the market. Creativity means originality and innovation which suggests the ability t o identify problems and devising ways of analyzing, thinking and coming up with solutions to such problems (Xenikou, 2012). There is a need to have a culture that encourages creative thinking so that to make an organization more innovative. Such a culture should transcend the traditional rules, ideas, methods and interpretations and creating meaningful methods of encouraging originality and hence, avoiding the status quo.

The culture should also move the focus away from the notion that leaders in the organization are the only one expected to be creative in problem-solving and shifting it to team approach. Research has shown that people are most creative when their minds are idle and these minds require downtime so as to induce imaginative innovation (Xenikou, 2012). Apple Inc. needs a workplace that is value driven and which will ensure that the organization has more focus on value. This is possible if the culture embraced throughout the organization encourages creative thinking. Apple corporate policy on creative thinking will therefore, encourage employees to feel that their ideas are valued and their thoughts towards solving any problems are respected. The policy is to be developed through activities whose aim is to contribute towards the general corporate culture.

Establishing and communicating values in the organization

The mission and vision of Apple Inc. will include the need to respect the ideas and thoughts of all the teams in the organization so as to encourage them to think differently about solving any problems may arise. Conventional wisdom holds that organizations have to focus on achieving efficiency, management control and even predictability (In Day, 2014). This will be possible when the every employee especially the technical teams feel that their ideas are recognized and taken into consideration at the team level and by the management. The values will ensure that members of team feel that they can take risks without fear of failing. Being fluid and able to embrace uncertainty can only thrive where there is freedom to think and perform tasks outside the normal control procedures. The established values should also encourage creativity at the personal level. Every team is made up people whose ideas and approach to challenges are different the culture should encourage level of individualism that enhances personal creativity (In Mumford & In Hemlin, 2017).

Communication entails being open with the employees so that their concerns are addressed so that the everyday operations do not overwhelm them especially with issues regarding the organizational culture. Where communication is encouraged, a person is able speak up about themselves and their ideas which may be necessary to overcome the current or emerging problems (In Day, 2014). This is especially true for the technical individuals who may have different talents in a team and the morale for these people is boosted if they are provided with an environment to air their ideas.  Values of an organization form the core a culture and suggest the guidelines on mindset and behaviors for achieving the set vision. When these values are fully communicated to employees, they will have a picture of how they are regarded highly especially in providing new ideas and hence innovation.

Investing on people

An organization will establish a coherent culture if it has the right people that share the core values and have the willingness to embrace the established values. In the regard, Apple Inc. needs to have recruitment policy that ensures that the right individuals are recruited for the right roles in the organization. The organization should therefore, be fanatical about recruiting individuals who are most talented and the best suited for the required corporate culture. It is important to have employees who are cultural fit and who will are willing to work on their creativity both as individuals and in teams so as to set the stage for a creative thinking in the organization (Leigh, A2012). People are known to stick to these cultures that they like and bring on individuals who are the appropriate culture careers will reinforce the desired culture in the organization (Leigh, A2012).

Creating a narrative

For Apple to structure a culture, a movement is needed that will emphasize the need for individual and teamwork creativity in the organization. The power of a narrative is that it establishes a unique story and unearthing this story into a narrative in an informal manner so as to have a culture that is aesthetically oriented in the organization.  This means that the elements of the said narrative will be powerful if they are recognized, wrought and retold as major part of the existing organizational culture (Boncheck, 2016). A corporate narrative for Apple will have to be strategic so that it is maintained and communicated to all the individuals and teams in the organization. A narrative is important for building a corporate culture through ensuring that employee engagement is enhanced. It tells where the organization is presently and where it is expected to be in the future (Boncheck, 2016). Amidst increasing competition in the IT industry, Apple has to build a creative culture that specifies where the organization is and where it intends to be in terms of performance.

Creation of informal group space

 This activity involve creating an environment that is intentionally engineered to allow members of the organization to associate informally like running into each other the whole day in  unplanned ways. This means that employees are placed in open environment instead of separate operation rooms that are closed. This suggests an open architecture which normally is more conducive for collaborations which is important in creation of supportive culture in the organization (Xenikou, 2012). Space, both architecture and geographical has a way of impact established values and even behaviors of all people at the workplace.  This is necessary in Apple where operations may be varying such as designing and production and there is a need to build a culture of creation, controlling, collaboration and competing and personal level.

To encourage creative thinking, there is need for a competitive environment but on that is controlled at a certain level through collaboration. Whereas individualism may be necessary for creative thinking, collaboration ensures that boundaries are put in place to avoid collusion and hence, encourage collaboration.  Space for informal group ensure there is room for interaction, sharing of ideas and support at the team level across all the departments in the organization (Xenikou, 2012).

Facilitating a creative work environment

Motivation for creative thinking is found mostly in individuals but the social environment in which they operate also affects creativity. An environment that is positive results to an atmosphere that encourages flourishing of creativity and a negative will squash such efforts. In this sense, Apple Inc. needs an environment that is positive so as to ensure successful adoption of the established corporate culture. Procedures are also put in place to ensure the growth of a culture that encourages a creative thinking among the employees.

Diversifying the teams

Diversity enhances creativity and hence, innovation at the work place since various cultural experiences not only brings benefits to creativity at the individual level but also at the team level. The relation between creativity and diversity is stronger where an organizational culture encourages higher engagement levels. Diverse groups’ results to better solutions since there is a variety of insights, perspective and even learning styles which speed up the process of problem solving (Williams, 2016). In addition, a diverse team has greater chances of coming up with groundbreaking ideas due to the different ways available for approaching a problem or issue. As innovation is constantly changing in the technological environment,

Apple Inc. needs the best ideas but not just the solution offered by a specific group of individuals. Hence, everybody is equipped to come up with innovations or ideas that are essential to the success of the company in the technological world. Hence, the composition of the employees in every team in the organization should be diversified to include people of different talents and capabilities and this will go a long way in encouraging creative thinking. Moreover, diversity increases the chances of creativity and problem-solving approaches that are team-lead and this results to a general improved productivity and hence performance of the entire organization (Williams, 2016). Apple will have to embark on hiring on hiring individuals that have varying experiences, backgrounds, education and even qualification.

Increasing play time

 It has been mentioned that most innovations comes about when peoples mind are not engaged in daily routines and this supports the need to let loose , relax and play. The leisure time is important in activating a default networking mode in the brain so that it can see any problem from a new perspective. It also gives room for trying new things that have the potential for reshaping an approach to the problem and hence, comes up with new solutions.  Activities that make people feel positive at the workplace may make them eager to spend time working when needed in busy periods (Goodman & Dingli, 2017).  Positivity is important in creative thinking since it helps in meditative techniques about issues that may need to be addressed in the organization. Apple Inc. has to provide ample time for people in the various sections to rewind and relax and hence encourage positive thinking.

Rewarding creativity

 Intrinsic motivation which comes with working on a specific task because of its interesting nature has a very strong link to personal creativity. This motivation mostly stems from a person’s curiosity and the challenge if the tasks they have to accomplish. However, the motivation should not be extrinsic especially if it is based on monetary rewards since it normally has detrimental impact on creativity (Goodman & Dingli, 2017). When a person does something for monetary benefit, they are likely to attribute this to that fact instead of an inner value such as the need for growth. As such, rewarding creative thing by Apple Inc. should focus largely on intrinsic motivation of an individual or a team. For a positive work environment, some rewards and incentives for creativity can go a long way to motivate the involved individuals. A good way that may be applicable for Apple Inc. is to an environment where flexibility is valued. For instance, breaking away from normal routines may result to increased productivity of new ideas from employees upon being unyoked from them. A good way to reward risk takers is to a solid feedback since it is human for individuals to want recognition for their hard work in coming up with groundbreaking innovations.

References

In Day, D. V. (2014). The Oxford handbook of leadership and organizations.767-771

In Mumford, M. D., & In Hemlin, S. (2017). Handbook of research on leadership and creativity.141-142

Leigh, A. (2012). The Essentials of Management: Everything you need to succeed as a new manager.

Boncheck, M., (2016).How to Build a Strategic Narrative. Retrieved from:https://hbr.org/2016/03/how-to-build-a-strategic-narrative

Xenikou, A. (2012). Group Dynamics and Organizational Culture. Palgrave Macmillan. 9-14

Goodman, M., & Dingli, S. M. (2017). Creativity and Strategic Innovation Management: Directions for Future Value in Changing Times. Taylor & Francis.

Williams, C.,(2016). MGMT. Cengage Learning

Table of Contents

Executive Summary. 2

Introduction. 3

Opportunity Factors and Trends. 4

Economic Market Opportunity and Potential Growth: 4

Threat Factors and Trends. 9

Major Contributing Threat Factors: Political, Economic, Social, Technology and Environmental 9

Opportunity and Threat Factors/Trends. 15

Recommendations. 16

Conclusion. 17

References. 18

Question 1

Distinct industries hold differing returns over a given period. In this context, there are some industries that perform better at short run periods but are unfortunate performers in long run operations. The value of any business is usually evaluated with the utilization of capital, developments, and incomes (Daidj, 2015). The industries that tend to better perform in the medium to the long run periods are energy, monetary, servicing and utility businesses (Daidj, 2015). The medium to the long run terms is those that range amid one and five years. This implies that the industries tend not to perform quite well in reference to profitability in relation to other sectors but based on formulated earnings they are the best performance in the long run. Media, business and buyer servicing industries are the ones that perform poorly in the medium to long run operating periods (Daidj, 2015). This is because more effort and investment is required in advertising.

Question 2

Today, some industries are associated with higher profits when compared to others. In that, this is the industries that have demonstrated increased revenues while constantly sustaining their values (Lussier, 2008). The industrial materials and energy sectors are among the industries associated with high profits given that in the recent the earning has increased from 2.50 percent up to 11 percent within a period of only five years (Daidj, 2015). However, these industries are the poor performers in regard to either medium, short or even the long run but tend to sustain and improve their earnings (Lussier, 2008). This is mainly because the industries normally share monopolistic markets.

Question 3

The industries that I would recommend are the servicing and business industries. In that, the industries are not only associated with higher profits in the short and long run period but they require less operating capital with lesser financial risks. In addition, the industries have higher chances of growth as compared to others (Daidj, 2015).

Topic 2

Question 1

Higher profits are acquired from the utilization of product distinctions or cost leading techniques. Corporations that normally perform higher when equated to others companies that are within the identical industry are those that are associated with differentiated products which tend to provide variety thus generating loyalty (Lussier, 2008). In addition, these are the companies that have established a better mode to be operative under lower cost while maximizing profits. In order for the companies that hold poor performance to do well, they are required to have authoritative leadership with well-designed long run approaches. For instance despite the fact that the brewing industry is characterized by high competition the companies offer a variety which leads to low expenses and higher profits (Lee & Carter, 2012). These corporations hold authoritative strategies in the quest of achieving high performing objectives.

Question 2

For corporations that operate within the same sector, some forces that would illustrate the distinctions in regard to performance, in the long run, are authoritative and oriented leadership, well-established strategies, diversification as well as technological resources (Lee & Carter, 2012). These factors are essential given that they provide objective missions that create competitive advantages. In addition, companies should always ensure that real needs are accomplished based on the partialities of their consumers which changes gradually.

Question 3

The industry that I recommend is the business servicing sector. For the purposes of creating a meaningful project, the most suitable company would be Amazon which is in the electronic commerce sector (Lee & Carter, 2012). The company is an American created company has ventured well in the international sector based on its provision of wide products range as well as quality (Lee & Carter, 2012). This has helped the company to acquire increased loyalty from its consumers given that it is focused on accomplishing actual needs that are based on separate consumer’s inclinations.

References

Daidj, N. (2015). Developing strategic business models and competitive advantage in the digital sector. Hershey Print.

Lee, K., & Carter, S. (2012). Global marketing management: Changes, new challenges, and strategies. Oxford: Oxford University Press.

Lussier, R. N. (2008). Management fundamentals: Concepts, applications, skill development. Mason, OH: South-Western/Cengage Learning.

Discussion

             An effective project schedule has the following characteristics. First, a project plan has a scope-this involves the work to be done in the project. Stakeholders in the project set goals and tasks, and implements set of processes. Second is resource- a project schedule defines the resources or materials to be used to start the scope. Third is time- this measures the project milestone and lifecycle of project completion (Young, 2013). Fourth is quality- this involves the implementation of quality policy in project management in order to produce the desires results.  Project directors ensure a high level of quality through setting quality standards. The last characteristic is risk- a plan schedule must identify possible risk which might occur and how the risk will be managed (Young, 2013). In project management, there are scheduling techniques which are used to control project schedules. These techniques are also used in my organization. The first technique is Gantt chart-this technique is used to track and report the progress. Managers use this technique to estimate the duration for project completion and it becomes easy to view the progress and set deadlines (Young, 2013).  Other technique is PERT charts-managers use this technique to view the uncertainty and prevent them by setting an affective time to be used.  Other technique is the critical path method –this allows managers to add time for project completion (Young, 2013).

 From my school experience, a project management situation is based on a real life project of investigating the cultural diversity which was presented by different cultural group in the community. This real life project was supported by information management which helped the team members make wise decision and achieve their goals using the available time and resources (Lester, 2013). Information was managed by creating an information management plan which identified the actions and responsibilities, and maintained control. The plan was a document which involved information requirement, methods of collection, analysis, reporting, technology, internal controls and more. In the project control, the information management plan was an effective method since it provided a program lifecycle where people and tools were involved (Lester, 2013).  

  EVMS was successfully used by the ‘United State Defense Department’. Managers in this department used EVM in 1967 for programme tracking (Budd & Budd, 2010). Managers were able to predict the future of the project and measure the performance by using an integrated system. The organization was successful in this project since managers were able to measure the performance and progress for the purpose of improving the process, setting responsibilities, identifying problems and ensuring quality management levels. Since this period, many organizations use EVMS for project control system and management project performance (Budd & Budd, 2010).

In my organization, leaders are defined by traits like dominance, self-assurance, enthusiasm, commitment, positive attitude, decisiveness, accountability and inspiration (Linzey & Pierce, 2015). The attributes which I believe are important are commitment, accountability and inspiration. Leaders who are committed to work and promises motivate the team members toward increasing performance and producing quality work. Leaders who show accountability ensure that things are moving smoothly through identifying problems, solving and setting policies and procedures (Linzey & Pierce, 2015). Finally, leaders who are inspiring motivate the team members to set clear goals, increase morale and work hard to achieve the vision and mission.

Reference

Budd, C. I., & Budd, C. S. (2010). A practical guide to earned value project management.

Vienna, VA: Management Concepts.

Lester, A. (2013). Project Management, Planning and Control. Elsevier Science.

Young, T. L. (2013). Successful project management. Kogan Page Publishers.

Linzey, J. F., & Pierce, D. (2015). Moral leadership: The 9 leadership traits. Wipf and Stock

Publishers.

Workplace Retaliation as related to filing or being a witness in an EEO charge, complaint, investigation, or lawsuit (Federal jurisdiction)

Introduction

Most individuals understand that there are active laws that guard employees against any form of discernment and harassment. However, most do not understand that the same laws guard employees against retaliation. This, therefore, implies that an employer cannot punish the workforce for filling harassment or discernment complaints or even for partaking in workplace examinations. In this case, the punishment does not generally refer to demotion or firing but it is an incorporation of other undesirable employment actions that involves being denied a transfer or pay increase or promotion to a more deserving position to being excluded from mentoring and training openings. Work place retaliation takes place when an employer penalizes an employee for involvement in lawfully guarded activities[1]. Retaliation, in this case, might incorporate activities that are undesirable to the employees such as salary decrease, shift and tasks relocation, dismissal as well as a demotion. However, retaliation can additionally be more restrained. The federal law guard’s staffs from retaliation when they file complaints which are either internal or external to bodies such as Equal Employment Opportunity Commission (EEOC) in regard to discernment and harassment regardless of whether the claim has no valid foundation given that it was filed in good belief[2]. Over the last decade, EEOC has conveyed that workplace retaliation is the utmost common issue that is supposed by federal staffs as well as the most shared discrimination in all the federal cases.

Thesis Statement

Workplace retaliation does not refer to operating in a hostile workplace or harassment but it mainly involves the undesirable punishment subjected to an employee after filing a legally guarded complaint or participating in workplace assessments. As workers are becoming more aware through training and education in regard to their rights, it is essential for employers to adopt suitable practices that lower the likelihood of facing retaliation complaints.

Road Map

This paper will seek to analyze workplace retaliation as related to filing or being a witness in an EEO charge, complaint, investigation, or lawsuit (Federal jurisdiction). In that based on the recent reports that retaliation is the prime base of workplace retaliation, there is a need to assess how retaliation occurs, its establishment as well as strategies that organizations and employees can partake towards acquiring protection against retaliation. In addition, the report will evaluate on what qualifies for retaliation, whether the complaint certainly matters, the laws guarding retaliation and finally make probable solutions and recommendations.

Background

Workplace retaliation litigations are growing rapidly thus becoming a common occurrence and particularly costly for employers. When a complaint is filed by a staff in regard to harassment or discernment in the workplace, it becomes commanding that the employer has to take some serious consideration by treating the complaint with unique care[3]. In that, if the action course utilized is perceived to be oriented at punishing an individual for their complaint in any manner the organization might be subjected to a costly lawsuit[4]. Given that discernment of harassment is prohibited by laws that guards employees discrimination of any kind is an unethical and yet costly response[5]. Based on EEOC’s recent reports it is apparent that close to half of all the cases that are filed yearly covers retaliation cases with approximately 42 percent of the discrimination conclusions being grounded on retaliation. In fact, the general number of all the discrimination findings that are grounded on retaliation claims have outweighed other forms of discrimination.

Precisely, retaliation is the most commonly purported discrimination base within the federal division since 2008. Retaliation cases qualify as any intense action that an organization applies to a worker on due to the fact that they filed an objection regarding discernment or harassment. The intense of undesirable actions might incorporate actions such as dismissal, offering untrue or negative assessments, demotion, pay reduction or duties reallocation. The guard in contradiction of retaliation is not only applicable to those that filed the objections but applies to everyone who decides to take part from the investigations that developed from the objection[6]. This, therefore, implies that the workers interrogated in regard to the objection cannot be discerned for their participation in the inquiry.

Today more than before employees have well-guarded against any form of discernment a subject that raises concerns given that it affects productivity in addition to the incurred cost by the employer. Based on the existing retaliation cases statistics, it is apparent that most employers are unknowingly trapped by the unintended retaliation against respective workers. The frustrating thing for most employers is that despite the fact that the actual discernment or harassment objection has not valuable base or it is fictitious the employer remains on the nail if they decide on taking actions that are perceived to be retaliatory[7]. In this context, it becomes apparent that punishing actions should never be applied to a worker on the ground that their complaint was baseless of forged because the truth of the objection never matters. Work place retaliation holds some intense consequences for the employer and therefore, rather than focusing on the worker that filed the objection organizations are required to punish the retaliator.

Argument

To most workplace retaliation involves harassing workers or subjecting them to a hostile working surrounding as punishment after filing an objection which is legally guarded or in participating in retaliation investigation. However, workplace retaliation involves any discriminatory or undesirable punishment by the employer to the respective employees for participating in legally guarded actions. Given that the adverse actions by the employer would hinder a reasonable individual in the discrimination situation to make an actual complaint, this is categorized as illegal retaliation. In other words, retaliation is a form of discriminatory punishment subjected to an employee for the attempt to guard their privileges. Even if the objection turns to be baseless the law also guards workers who participate in EEOC assessments or those that act as witnesses during the EEOC litigation. In addition, other laws such as ADEA protects all another kind of whistleblowers as well such as those that objects unsafe working places. It is worth noting that some, state laws also forbids employers retaliation against their workers[8].

Every retaliation action does not necessarily imply that the employee’s job is at risk. In that retaliation can originate as a form of unanticipated or prejudiced performance evaluations, intense management of all the employee's activities or even an immediate exclusion from employees teams in regard to training or project accomplishment. Despite the fact that employers are permitted to discipline their workers in spite of filing an objection or not, it benefits particularly after being careful in regard to how the employees involved in the legal objections are disciplined. In that after the employee has filed an objection then months later acquire undesirable performance evaluations, even if the evaluation was not connected with the complaint, frequently the worker will interpret the evaluation as retaliation. In accordance, any form of disciplinary action subjected by the employer that is bound to negatively impact an employee after the objection should involve proper documentation of the foundation of this disciplinary actions. Otherwise, without the presence of reliable evidence in contradiction, the legal team will automatically suspect the timing amid the objection and the subjected punishment[9].

Workplace retaliation is complex and particularly demanding for the organization. However, given that retaliation is classified as the prime base in regard to workplace discrimination an occurrence that might ruin the general capability of an organization it can be prevented. Surprisingly, workplace retaliation prevention is particularly easy which does not necessitate many finances, time or even effort. To begin with, it is essential to develop a regulatory policy that prohibits discrimination or retaliation. This policy should adequately describe retaliation, the resulting consequences, and reporting procedures. Also, it is beneficial to take the raised complaints seriously and accurately by applying a thorough investigation. In this context, employers are required to focus on the retaliator, not the complainer. Complaints should be preserved as confidential and the associated reports stored safely for further references.  Employees should be made to understand that filing complaints do not affect their jobs given that it is a form of protecting the organization from adverse consequences. It is imperative that the process is well documented in case of any legal proceedings. This means that there should be a process that seeks to keep documentations and reports from the actual complaint, via the whole investigation as well as the general conclusion.

Retaliation is the most common supposed basis of discernment within the federal area and the most shared discernment within the filed cases. Retaliation particularly occupies 42 percent of all the discrimination cases within the federal sector. The EECO policies forbid actions that are intended to punish employees or those that are applying for emphasizing their privileges to attaining liberation from any kind of discrimination that incorporates harassment. Emphasizing these kinds of EEO privileges is commonly referred to as protected activity which can occupy different forms[10]. For instance, it is particularly unacceptable legally to retaliate against workers for being a witness or filing objections in an EEO case, investigation, lawsuit or even an objection. In addition, those that intervene in the quest of guarding other employees are also guarded by the EEO laws[11]. In that, one should never be retaliated for participating in an interrogation in regard to a supposed harassment. In addition, communicating in regard to discrimination is protected for instance when a worker is involved in investigating about salary details in order to unveil probably discriminatory salaries. 

Employees can file a qualifying retaliation complaint in situations where the resist sexual advances aimed to result in favorable impacts. In this context, if the worker is discriminated against on the ground that they resisted the advances then the complaint is probable and particularly costly for the employer[12]. Partaking in the complaint investigation procedure is also guarded against being retaliated under any situation.

However, the engagement in EEO operations does not protect any worker from acquiring discipline charges if their actions violate the organization’s laws. In this case, employers are permitted to discipline or even dismiss the employees given that they are driven by non-retaliatory and non-discerning motives that would result in direct disciplinary consequences based on the ground that they acted contrary to the company’s laws. However, the laws do not permit the employer to apply any action in responding to EEO’s operations which would, in turn, discourage other individuals from participating in the activity or even making similar objections in the future if discernment is subjected. In this case, the organizations are restricted from acting in a discouraging manner given that witnesses are well protected and voluntary participation is encouraged. For instance, depending on the provided facts retaliation can be approved if the employer acts on the basis of EEO’s activities in regard, transferring the worker to a less deserving position, engaging in physical or verbal aggression, threatening their participation, increasing scrutiny, offering non-factual performance evaluation that negatively affects the worker’s performance and career and creating a rather challenging workplace for the employees[13]. This might include punishing the complainant for filing an objection in regard to the desecration of EEO laws by intentionally modifying the worker’s tasks and working schedules in order to create a conflict with their personal or family responsibilities[14].

Retaliation is among the most sensitive discriminatory subjects such as sexual orientation that are not adequately incorporated within most organizations discriminatory policies. It is worth noting that retaliation can directly affect the general capability of the organization similar to all other discriminations. Based on findings most workplaces discriminations are particularly fueled by retaliation. In that, the employer’s tend to acquire frustration on the ground that the workers have acted against their wishes thus placing the company at risk with the law. However, it is worth acknowledging that given that both parties are affected by the issue retaliation is preventable with the engagement of probable policies that clearly describes and outlines procedures for handling such cases. Retaliation is even worse if it has resulted in dismissal or demotion because in this case the privileges of the worker are contradicted.

As workers are becoming more aware through training and education in regard to their rights, it is essential for employers to adopt suitable practices that lower the likelihood of facing retaliation complaints. Previously, retaliation claims by employees used to be deemed as a common occurrence that the company can evade easily. However, this is not the case for any of the claims that are filed in regard to harassment and discernment. Today, retaliation cases often frontier and acts as the central investigation point in litigation processes and there are actually more challenging for any organization to cross through. Anti-retaliation guidelines are universal in the main employment laws. One of the usual endowment is offered by ADEA which particularly prohibits any form of discrimination on the ground of age and therefore, prohibits any punishment against those that participate in the investigation as a witness, complainant or played an assistive role[15].

In the interpretation of the primary risks that are involved with the type of claims, it is vital for the workers to comprehend the general nature as well as special issues that are associated with retaliation objections. The most suitable practices for lowering the likelihood of employers ending in the wrong position based on the objections can also be lowered. For instance, the recent Statistics offered by EEOC demonstrate the dramatic increase in the rate of retaliation cases filed by complainants with Federal organizations. For the paramount time ever, in 2011 the rate of the retaliation filed cases in relation to EEOC outweighed the general charges that were raised in regard to discrimination on the basis of religion, age, disability and so on[16]. A clear observation at the increasing retaliation cases it is apparent that the charges are increasing rather rapidly with time. There has been an established distinction in regard to how courts handle retaliation cases on the ground that they form the ground for discrimination in general. This can be proved by the recent conclusions by federal courts that are eager to offer summarized evaluation in regard to discrimination but does not offer conclusive evaluations of retaliation charges.

The sudden increase and commonness of retaliation claims are justifiable. In that, the workplace today comprises of smart and well-equipped workers in regard to knowledge. In addition, social media sites and the internet additionally provides increased contact with data in regard to workers privileges in the employment sector. More so, retaliation claims are in most cases easier to argue when equated to the complex nature of other forms of harassment and discrimination which necessitates demonstrating the targets of the employer to be discriminative. Contrary, retaliation charges can primarily be grounded on objective subjects that are fueled by sequential intentions. Employers can effectively handle retaliation cases today by having an applicable mindset[17]. For instance, most companies today conduct training in regard to discrimination but fail to incorporate retaliation guidelines and description. Every company is required to be responsible in regard to preventing the occurrence of any discrimination given that the consequences of failure are fatal.

Conclusion

In summing up, it is apparent that retaliation cases have been on the rise recently as the base of other kinds of discrimination. For several years now, EEOC has reported that retaliation cases outweigh those that are related to discrimination based on age, gender, race or sexuality. Retaliation is complex for the employer and particularly expensive. In this context, employers are required to create adequate written regulations that incorporate all the specific against retaliation. In addition, they should also make publication and apply the policies in a steady and reasonable manner. Employers should be mindful of the common caution for documentation. There is probably no other sector within the employment laws that are well served by the internal document as proof that the retaliation assertions protection. Having properly documented organizational strategies and decisions in regard to prohibiting retaliation can in most cases be utilized to dismiss the claims legally. From statistics, the current rise of retaliation cases is mainly fueled by the fact that employees understand their privileges quite well and the fact that the claims are guarded legally. There is, therefore, a necessity to prevent the occurrence by protecting the organization while upholding the rights of all the employees despite their objections.

References

Brake, Deborah L. "Retaliation in an EEO World," Indiana Law Journal: Vol. 89: Iss. 1, Article 7. (2014). Retrieved from http://www.repository.law.indiana.edu/ilj/vol89/iss1/7

Brake, Deborah L. "Retaliation in the EEO Office." (2014).

BUCKLEY, JOHN F. I. V. Equal Employment Opportunity Compliance Guide: 2017 Edition. S.l.: WOLTERS KLUWER LAW & BUS, 2016. Print.

Cooney, Lisa. "Understanding and Preventing Workplace Retaliation." Massachusetts Law Review 2015 (2016): 2014.

EEOC. Retaliation- Making It Personal. 2017. Retrieved from https://www.eeoc.gov/laws/types/retaliation_considerations.cfm

Ford, Karen E, Kerry E. Notestine, and Richard N. Hill. Fundamentals of Employment Law. Chicago, Ill: Tort and Insurance Practice, American Bar Association, 2000. Print.

Gallus, Jessica A., Jennifer A. Bunk, Russell A. Matthews, Janet L. Barnes-Farrell, and Vicki J. Magley. "An eye for an eye? Exploring the relationship between workplace incivility experiences and perpetration." Journal of Occupational Health Psychology 19, no. 2 (2014): 143.

Miles Angela, Fleming Marka, McKinney Arlise P. Retaliation: legal ramifications and practical implications of discriminatory acts in the workplace", Equality, Diversity and Inclusion: An International Journal, Vol. 29 Issue: 7, pp.694-710. (2010). Retrieved from https://doi.org/10.1108/02610151011074416

Mills, Judge Michael P. "EEOC v. Resource Employment Solutions, LLC." (2016).

Mitchell Marie S. & Ambrose Maureen L. Abusive Supervision and Workplace Deviance and the Moderating Effects of Negative Reciprocity Beliefs. Journal of Applied Psychology the Vol. 92, No. 4. (2007). 1159–1168 American Psychological Association. 

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

Secunda, Paul M. Retaliation and Whistleblowers. Austin: Wolters Kluwer Law & Business, 2009. Print.

Shilling, Dana. Complete Guide to Human Resources and the Law. , 2015. Print.

Solano, Frank & Kleiner, Brian H. “Understand and preventing workplace retaliation, Management Research News, Vol 26 Issue 2/3/4. (2003). Retrieved From http://www.pmlaw-us.com/area/retaliation/

U.S Equal Employment Opportunity Commission. Facts about Retaliation. (2017). Retrieved from https://www.eeoc.gov/laws/types/retaliation.cfm

[1] EEOC. Retaliation- Making It Personal. PP. 1-1. 2017.

[2] Solano, Frank & Kleiner, Brian H. “Understand and preventing workplace retaliation, Management Research News, Vol 26 Issue 2/3/4. (2003).

[3] Secunda, Paul M. Retaliation and Whistleblowers. Austin: Wolters Kluwer Law & Business, 2009. Print.

[4] U.S Equal Employment Opportunity Commission. Facts about Retaliation. PP. 1-1. (2017).

[5] Shilling, Dana. Complete Guide to Human Resources and the Law. , 2015

[6] Brake, Deborah L. "Retaliation in an EEO World," Indiana Law Journal: Vol. 89: Iss. 1, Article 7. (2014).

[7] Ford, Karen E, Kerry E. Notestine, and Richard N. Hill. Fundamentals of Employment Law. Chicago, Ill: Tort and Insurance Practice, American Bar Association, 2000.

[8] BUCKLEY, JOHN F. I. V. Equal Employment Opportunity Compliance Guide: 2017 Edition. S.l.: WOLTERS KLUWER LAW & BUS, 2016.

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

[10] Miles Angela, Fleming Marka & McKinney Arlise P. Retaliation: legal ramifications and practical implications of discriminatory acts in the workplace", Equality, Diversity and InclusionVol. 29 Issue: 7, pp.694-710. (2010)

[11] Gallus, Jessica A., Jennifer A. Bunk, Russell A. Matthews, Janet L. Barnes-Farrell, and Vicki J. Magley. "An eye for an eye? Exploring the relationship between workplace incivility experiences and perpetration." 19, no. 2 (2014).

[12] Gallus, Jessica A., Jennifer A. Bunk, Russell A. Matthews, Janet L. Barnes-Farrell, and Vicki J. Magley. "An eye for an eye? Exploring the relationship between workplace incivility experiences and perpetration." 19, no. 2 (2014).

[13] Brake, Deborah L. "Retaliation in the EEO Office." (2014).

[14] Brake, Deborah L. "Retaliation in the EEO Office." (2014).

[15] Mills, Judge Michael P. "EEOC v. Resource Employment Solutions, LLC." (2016).

[16] Cooney, Lisa. "Understanding and Preventing Workplace Retaliation." Massachusetts Law Review 2015 (2016): 2014.

[17] Cooney, Lisa. "Understanding and Preventing Workplace Retaliation." Massachusetts Law Review 2015 (2016): 2014.

Wal-mart overview and organizational structure

Wal-Mart is a multinational firm that is headquartered in Arkansas United States and its operation involves wholesale, retailing and also other units in different formats globally. Its operations comprises of 3 segments; Wal-Mart United States, Sam’s Club and Wal-Mart International. Wal-Mart US operations consist of concept based on mass merchant across United States and these operations are carried out under Wal-Mart brands and also through digital retail.  Wal-Mart International comprises of the firm’s operations in areas outside US including different retail websites. This segment consists of different formats which are separated into wholesale, retail and other. The organizational structure of Wal-Mart shapes the operations and business activities of the company and places limits on how the firm responds to the environment. The structure also determines how the various human activities are integrated with resource utilization and business operations in the entire organization. A resilient spirit by the company’s human resources partially depends on the perception that is supported through a common organizational culture. 

The company’s organizational structure is hierarchical functional and this describes the two major features on which the structure definition is based.  The hierarchy aspect relates to the vertical alignment of authority and command in the entire organization where, for instance, apart from the CEO, all employees are under a superior. The leadership placed by this structure aims at integration of the different values of the founder into the culture so as to improve workers morale and achieving positive inference on the bottom line. Due to the sheer large size of the company, the hierarchical structure is deemed necessary especially in the decision making process.  With many employees working across the many branches globally, the leadership deems this the best structure for the organization so as to ensure efficient and effective management of the large pool of human resources. In this structure, directives coming from the management at the top are placed under the middle managers who ensure their implementation by the lower ranking employees in the firm.

 In addition, the function based aspect if the organizational structure consists of employees’ groups that fulfill various functions allocated to them. For instance, the firm has Human Resource Management function being a department for that particular function. Other departments include the marketing and information technology sections that carry out the related functions which are just part of the many departments that are function-based in the organization. The major impact of the hierarchical organizational structure that is also functional is the ability of management to easily influence the whole firm.  The hierarchical organizational structure involves a clear definition of the role of employees in an organization and the nature of their tasks and relations with others is given. This kind of structure is usually tall and there is narrow control spans and this gets wider as one move down the structure (Hirschey & Bentzen, 2016). The structure is fit for organizations with a wide global reach given the complexity, dynamism and high integration of the world economy which has necessitated the need for redesigning firms critically. Organizational structure relates to the organizational culture of the firm that is in turn determines the behavior and human activities that are aimed at receiving the best outcomes of the business operations in the market. In the allocation of resources, a managerial control is established through the organizational structure to ensure that the intended purpose for these resources is achieved (Brickley, Zimmerman, Simon, & Smith, 2015).

Agency problem

 A major agency problem that has existed in Wal-Mart involves the need for improved employees and the need for employees to maximize value. On one hand, the company has previously made a decision with an aim of boosting the employees’ pay so that to meet the minimum wage as outlined by federal authorities after being under pressure from unions and groups of employees in the firm. On the other hand is a case where the shareholders feel that executive compensation at the firm is dealt with in isolation of major performance indicators. For the company’s workers, the decision to raise their pay resulted from various strikes from a group such as Our Wal-Mart on a shopping day that is busiest for the firm’s calendar. The argument was that majority of the workers were living in poverty forcing them to depend on food stamps for survival. This did not augur well with investors expectations and they reacted to the announcement negatively and this saw the company’ shares fall by 3.21 percent. The reaction can be attributed to the projection that change would cost as much as $ 1 billion and thereby wiping out 20 cents per share of earnings in the financial year. For Wal-Mart executives, shareholders felt that they continued receiving unreasonable pay while the performance of the company’s share declined previously.  This means that even when the performance of the firm is down, the executives continued to earn compensation that was not based on the performance metrics and essentially behaving like a private firm that is not held accountable by outside shareholders.

The decline in the performance of the firm could not be reflected in the formulas for setting compensation appropriately. This creates an agency problem where the executives are viewed to be rigging the entire process for their benefit and without considering the interest of the shareholders who are the owners of the firm. The management of the company is viewed as working against the interest of shareholders through their actions.  The agent problem arises from actions that lead to an environment that does not align the interest of the principal to that of the agent (Waschik, Fisher& Prentice, 2010). In general, the responsibility is on the principal to develop incentives that that ensures that his agent acts accordance to interest of the principal. A common perception on the contract of the employee is to relate the compensation of an employee to that of the set measurements for performance (Waschik, Fisher& Prentice, 2010).  The shareholders in this case may feel that the interest of the executives and employees are not aligned with interest of the organizations they own. Yet in many instances, the principal can only   check the agents’ acts imperfectly meaning that agents can decide to advance their interest rather than those of the principal.

In this scenario, the shareholders can advance their interest by monitoring the executive actions while at the same time, ensuring that the interests of employees are not undermined for the sake of profit maximization. This would ensure that the firm does not get into conflict with regulatory authorities due to poor compensation of its employees.   The solution for the agency problem created by salary increment for employees is to have an incentive plan that less costly and which aligns the interest of shareholders to those of workers. This can easily be done by tying the compensation of the employee to company’s performance or a given metric of productivity or success of the company (Van Essen, Otten & Carberry, 2015). In order to solve the problem caused by unchecked executive compensation is to tie the performance of the company in terms of financial well-being. This may involve offering stock options to executives as long as the process is legal and appropriate by disclosing it to the relevant regulatory authorities. Stock options have been successful and effective in solving compensation related agency problem in the past and can help in increasing the overall value of the company (Van Essen et. al 2015).  

The agency problem arises once a principal decides to delegate actions to the agent without having information on the possible behavior of the agent.  The agents carry out actions that do not serve the interest of the principal which means that the outcome will be very undesirable in relation to the expectations of the principal.  The shareholder, as the principal, aims at maximizing the profits of the organization and hence expects the management to run the organization in way that this will be achieved in the short-run and long-run (Van Essen et. al 2015). The agency cost prevents the shareholder from knowing the efforts of the management and to what extent the contract is being fulfilled. The agency problem can result to market failure since the agent may pursue own interests at the expense of those of the principal. The business may be run in a way that is inefficient and hence leading to failure on the part of the principal to achieve the intended outcome (Waschik et. al 2010).  To reduce such failures, there is a need for a solution to be found for the problem and thereby ensuring that principals interests are achieved.

Job dimension and design

 The job design of Wal-Mart is based on the organizational structure of the firm which is hierarchical in nature. This structure simplifies to specify distinct characteristics of features of a job since a clear authority line, communication lines and command lines are established throughout the organization. The job dimension of the firm aims at achieving the intended outcomes across the organization and in all the branches or stores locally and globally. Job dimension and design has a big impact on the morale of the employees, their job satisfaction, motivation, commitment to the organization and even turn over (DuBrin, 2012). The dimension of the job is skill variety which refers to the extent to which a certain job needs a variety of separate activities in performing the tasks (DuBrin, 2012). This involves utilizing various talents and skills of an individual to improve performance and hence achieve the expected outcome.  The dimension is informed by the worker-oriented and work oriented analysis of the job for the various positions in the company.  The analyses provide a good way for the firm to obtained perceptual, interpersonal and cognitive skills or abilities especially for the managerial jobs, and the method is applied through a Work Profiling System for such jobs. The human resource management function is tasked with carrying out the tasks related to defining job description.  The Job design for Wal-Mart, as the largest global retailer, involves defined criteria including position, duties, functions, performance standards, job knowledge and factors.  

The job design involves a wide range of job description but the essential features and attributes that are desired include the whole job description.  The job design is essential since the company has many stores and platforms in which business operations are carried out and which requires a variety of skills. This fits the nature of the company since its location in many parts of the international market requires specific skills for specific areas and tasks.  It is also essential for standardizing operations in stores, achieving economies of scale in different functions such as marketing, merchandizing and distribution. The store managers control the operations and thereby ensuring standards are maintained at the same level. An effective job design is one that out together various tasks, identifies them and placing the skilled individual that is best suited use a variety of skills in performance especially at the superior levels. Walmart store managers require such skills so as to drive up performance (Stanford, 2015). To improve on the job design, the company should focus on job specialization, enlargement and enrichment by grouping the various jobs by function.  Job specialization involves grouping different jobs into components and allocating them to individuals such they utilize their skills and improve on them through repetitive tasks. Breaking down tasks and allowing repetition of the same tasks minimizes jobs skills requirements, cost and effort involved in staffing (DuBrin, 2012).  Job enlargement involves expanding various tasks to add variety where employees are slowly given more tasks as they gain experience. Eventually, job enlargement teaches new skills for multiple tasks by the employees (DuBrin, 2012).   Job enrichment involves allowing workers more control over the tasks they are performing since employees who have authority over their tasks become more efficient and improve their general performance (DuBrin, 2012)..

Compensation package

The compensation package implemented by Wal-Mart is based on the need for cost minimization so as to provide low priced products to customers. The minimal wages have come under much criticism due to inadequacy in providing enough support for the needs of employees. However, the company has considered increasing the compensation packages offered to its employees. The compensation package for the company includes a plan for purchase of associate stock and contributions of 401(k) up to 6 percent of the salary both with company much. The package also includes associate discounts and a plan for Comprehensive Health Insurance. The package is aimed at maintain high motivation for the employees and the benefits address the goal of human resource function that it to retain its employees.

In addition, the package also involves the education and training programs for the employees for the purpose of personal growth and career development. The management aims by offer this package supporting employees by providing reasonable compensation at all the levels in the corporation.  However, the compensation plan and package fails provide enough financial support to cover the rising cost of human needs as their cost increases in the market. This is despite the fact that the firm counts on minimizing costs so as to lower product prices. For the package to be effective, it has to include the same standards of compensation for all the workers especially by use of performance standards. This will motivate the employees to work more, improve the firm’s earnings and hence sustaining their compensation.

Reference

Brickley, J. A., Zimmerman, J. L., Simon, W. E., & Smith, C. W. (2015). Managerial economics and organizational architecture.

Hirschey, M., & Bentzen, E. (2016). Managerial economics.701

DuBrin, A. J. (2012). Essentials of management. Mason, Ohio: South-Western/Thomson Learning. 256-258

Stanford, N. (2015). The Economist guide to organisation design: Creating high performance and adaptable enterprises.

Waschik, R., Fisher, T., & Prentice, D. (2010). Managerial economics: a strategic approach. Routledge.15-17

Van Essen, M., Otten, J., & Carberry, E. J. (2015). Assessing managerial power theory: A meta-analytic approach to understanding the determinants of CEO compensation. Journal of Management, 41(1), 164-202.

Strategy Management of Wal-Mart and Nordstrom

Outline

Table of content

Mission statement

Wal-Mart: “Saving people money so they can live better.”

Nordstrom: “to provide outstanding services every day, one customer at a time”

Price Points & Positioning

Wal-Mart

• food retailers
• Low price point
• Selection/variety
• Poorer consumers shop regularly
• Local competitors and international competitors
• High volume
• Customer satisfaction

Nordstrom

• Fashion merchandise
• Quality services and higher price point
• Multi-channel
• Inventory management system-customer experience, digital capabilities
• Attracts wealthy customers whose average income is more than $100,000

Generic competitive strategy

Wal-Mart

• Cost leadership
• Selling point: low prices
• Low operating costs
• Efficiency operations
• High sales volume

Nordstrom

• Differentiation strategy-services, selection and quality, shoes accessories
• Latest fashions and great quality
• Multichannel
• Technological innovations
• Switching costs-online shipping, online inventory, price matching
• Information system
• E-commerce channel

Long-term Strategies for Growth and Sustainability

Wal-Mart

• IT investment
• Low prices and high convenience
• Technological improvement
• International expansion

Nordstrom

• Multichannel presence
• Online presence
• Superior customer services

Reference:

Mission statement

            Wal-Mart states that “saving people money so they can live better” (Whitaker, 2010).  The company ensures that customers save money and makes a difference in their life by accessing quality products at low prices. The board, management and employees are highly committed to ensure quality products at reasonable prices. In addition, the company helps the community live a better life through protecting the environment and following the environmental ethics. The company also values the health and safety of associates and communities; it ensures safety laws, policies and ethics in conducting operations. In order to achieve the mission, the company works for maximum efficiency through building a strong cooperation with manufacturers. Through cooperation, it improves efficiency in logistics and through the application of merchandise mix; the company is able to offer customers low prices (Whitaker, 2010).

 The mission statement of the Nordstrom Corporation is “to provide outstanding services every day, one customer at a time” (Spector & McCarthy, 2012). The founder of the company, John Nordstrom states that customers should be valued and offered the best services. The company puts much focus on product differentiation to achieve its mission of offering customer quality services and products, selection and fair prices. To achieve the mission, managers play an important role in motivating and empowering employees to show trustee, integrity, honest, and kind (Spector & McCarthy, 2012).

Price Points & Positioning

   It concentrates on providing high value products and services at low prices.  In addition, the company focus on key brands and cost control and this strategy creates customer impression and maintains the competitive edge in the market. Wal-Mart uses the strategy of cost leadership and this increases competitive advantages by ensuring that services and products are offered at the lowest prices. In the competitive market, Wal-Mart is the leading company in offering low prices.  It has main goals of proving its customers with quality products at low prices and achieving high profitability and return in investment (Clifton, Simmons & Ahmad, 2003). To achieve this, the company has effective operational management such as opening new stores in new regions and establishing new distribution. In Wal-Mart, customers are satisfied with the structure of the stores since there are clean, brands are relevant and it is easy to navigate. In addition, customers have a great experience by providing them with faster checkouts and services. Customers are provided with a great experience as they can now access online grocery where they can purchases variety of products (Clifton, Simmons & Ahmad, 2003). According to Pew survey in 2005, workers who earn less than $20,000 shop regularly than workers who earn $50,000. The company has a unique culture which values employees and focus on raising wages and training.  There is a strong relationship with employees and the company creates a culture where employees are motivated and allows them to develop a sense of belonging. For example, employees are known as ‘associates’ and the associates are connected with customers. The culture forms a family-orientated business and a customer-centric team (Clifton, Simmons & Ahmad, 2003).  Associates are highly engaged and this increases customer satisfaction by ensuring that customer get prices at a lower cost.

A big difference is seen when it comes to price and values since Nordstrom Company focus on offering quality product and services at higher prices. Nordstrom does not deal with competitors by offering low prices but it concentrates on customer services. It uses the omnichannel which ensures that customer in different locations can access all products they need (Spector & McCarthy, 2012).The company mainly focuses on premium prices and quality services.  For example, while customers are shopping in retail stores, employees offer services such as warming up cars. There is a strong relationship with employees. The latter are allowed making personal decision when it comes on customer interactions. The company has a unique culture where employees are provided with flexibility and other necessary resources needed in achieving the mission (Spector & McCarthy, 2012). Employees receive payment with respect to sales commission. However, they get commission compensation and share revenue. In addition, there is a strong relationship with customers where they are offered with quality services which meet satisfaction.

Generic competitive strategy

Wal-Mart uses the cost leadership as the generic strategy and this strategy is important as it helps the company offer goods and services at low prices (Hill & Jones, 2009). Price reductions are the main price point and technologies such IT promotes the cost reduction by ensuring efficient operations. Wal-Mart is able to deal with completive threats through offering low prices, low cost of distribution and efficient networks. In addition, the company has the ability to offer services like online purchases and store pick-up on sales channel. Having established international presence, it is expanding the scales which will lead to high sales volume and high revenue. People have different choice and some may opt to buy from bricks and mortals while others on online stores (Hill & Jones, 2009). Therefore, Wal-Mart and Nordstorm have different strategies to ensure that customers are satisfied on both retail stores and online stores. For example, Wal-Mart offers cheap prices to attract retail store customers and loyalty programs to attract online consumers (Hill & Jones, 2009).

 Nordstrom Company uses the differentiation strategy where it provides high end products and quality services. The company offers great customer services while competing with larger corporations in the world. It has the capability of reaching worldwide customers and ensures that all customers access quality products and services and that their expectations are met (Hill, Schilling & Jones, 2016). It believes that success is achieved through offering quality services, variety of selection, higher performance and fair price. These are achieved through hard work than other competitive companies. The company also believes that their goals are not to attain profits but to help other people achieve their goals. It has a strong culture where customers are valued and develops a sense of belonging the company has many customers with different preferences. To offer high-touch experience, technology is applied to ensure that customers access quality products at a fast and convenient way (Hill, Schilling & Jones, 2016. The company noticed that there is an evolving customer demands and to satisfy the demand, it ensures flexibility, productivity and IT. Nordstrom offers excellent services to satisfy the need for customer who purchase retail stores and alternative strategies to meet the needs of online consumers. In online stores, the company has mobile apps with visual search where customers can scan images and view the products. In bricks- and mortals, Nordstrom offers great services and develops outlet business which allows the company to reach millennial customers (Hill, Schilling & Jones, 2016).

Long-term Strategies for Growth and Sustainability

            To achieve growth and sustainability, Wal-Mart concentrates on meeting the demand of the evolving customer base through price and experience- where new ways to make customer delight are needed. In other words, it focuses on redefining ways in which customers will access products such as improving locations. In addition, the company focuses on managing capital, improving the performance through combining price, stock and merchants’ skills, increasing investment and maintaining the low prices in locations worldwide (HUSAIN, 2014). The cost leadership strategies enhance growth and sustainability in that it becomes highly competitive in market, thus establishing markets where it offers variety of product to different customers. The company has a growth opportunity due to its cost advantage and supply chain management. These will assist the business in expanding in geographic areas where it will offer services and increase revenue. However, political factor may affect growth and sustainability due to political instability and rules and regulation (HUSAIN, 2014).  In addition, economic factors such as high inflation will affect the due to high prices of products and services.

In future, Nordstrom will generate sustainable growth accompanied by high sales volume and market share, high workforce and high revenue. This is because; it is focusing on store expansion to compete with the evolving industries.  By 2020, the company wants to achieve $20 billion growth, and this will be achieved through advancing technology, improving supply chain, implementing cost saving initiatives and digital network (Spector & McCarthy, 2012). With these technologies, the growth will be sustainable.  The company does not concentrate on financial markets, real estate markets or high profit but its main concern is on customer service. All the same, profit is important but customer service is the first priority. Nordstrom has implemented new technology on brick-and-mortar and new functionality in marketplace. Customer is given great experiences where they can now access point-of-sale devices and full-line stores (Spector & McCarthy, 2012). In addition, customers have great online experience through the use of fit ratings, free shipping and mobile application. However, growth and sustainability in Nordstrom will be affected by government factors such as political instability, labor law and trade restrictions.

Reference

Hill, C. W. L., & Jones, G. R. (2009). Essentials of strategic management. Mason, OH: South-

Western/Cengage Learning.

Hill W.L. Charles., Schilling A. Mellisa & Jones R. Gareth. (2016). Strategic Management: Theory: An

Integrated Approach. Cengage Learning

Spector, R., & McCarthy, P. D. (2012). The Nordstrom way to customer service excellence: The handbook

for becoming the"Nordstrom" of your industry. Hoboken, N.J: Wiley.

Whitaker, K. (2010). Principles of software development leadership: Applying project management

principles to Agile software development. Boston, MA: Course Technology.

Clifton, R., Simmons, J., & Ahmad, S. (2003). Brands and branding. London: Profile Books.

HUSAIN, S. E. H. B. A. (2014). EMOTIONAL INTELLIGENCE FOR EMERGING LEADERS AND

ENTREPRENEURS - ILLUSTRATING THE FORTUNE GIANTS. S.l.: PARTRIDGE PUBLISHING.

A Business Plan and Expected Life Cycle

Executive Summary

Modern Tech is a starting up organization that will operate within the American local market.  The company will be specializing in the sales and repair of home-based electronics which will particularly entail entertainment products which as CD/USB players, TV, and Home theatre music systems. The company will be targeting individuals who place significant importance in their entertainment equipment as well as possess high-end and quality electronics which presents cost proficiency with repair rather than being replaced in general. For instance given that most electronics, particularly in the entertainment sector, are usually characterized by reduced prices most individuals find it easier, convenient and cost effective to purchase fresh products than attempting to repair the ones that exist. Based on the high starting and operating cost of an electronic corporation, the firm will initially operate locally to low the cost. The electronic market is highly competitive and saturated and therefore, this plan will be useful for a strategic venture.

Company’s Description

Modern Tech is intended to be a cost and differentiation front-runner in the home-based entertainment electronics sales and repair. This will enable the corporation to ultimately offer TV and Satellite servicing, installation and new electronics sales which will make the corporation to be a local leader in inclusive electronic products and services. The company will be registered under sole proprietorship to ensure that it has comprehensive control of all its operations.

Mission Statement

The prime mission of Modern Tech is to offer superior, all-inclusive and convenient entertainment electronics and household electronics repair at the least price. The most significant feature of this business revolves around reliance. In that, the objective of the company is to acquire an ample consumer fulfillment in regard to strong relationships, openness, discovery, superiority and reliable achievement. Consumer satisfaction is the priority of the company given that it is centered on ensuring that their needs are fulfilled completely. The company will consistently search for fresh ways to exceed the consumer’s expectation while offering the services at the most affordable prices. Home-based entertainment electronics are usually costly to purchase and repair which leaves most of the users disappointed. The company will be changing this status and creating a different attitude based on its quality, unique, convenient and affordable services and products.

Major Success Forces

In the electronic sales and repair sector today, a company can best formulate its consumer base slowly based on the responses acquired from every consumer and mainly through engaging in well-situated marketing strategies. In this context, Modern Tech major success forces are several which will help in building an extensive and strong base. This will include, high superiority services and products, adequate and professional appearances at any given time that seeks to build better relationships with the consumers, well-informed technicians that are consumer objected, approachable and will ensure that they offer comprehensive explanations of the intricate business nature and their responsibility. In addition, it is vital to preserve active managerial evaluation and assessment of cost, services, and operation in ensuring that they offer the least costs at the quality (Andreas, 2011).

Organizational Structure

The company is in its starting up level, where so much effort is required in the development of a reputable image that will be able to accommodate the changing consumer needs. In this context, an appropriate organization structure will be a necessity. A functional organizational Structure will, therefore, be applied in running the company (Gido, Clements, & Baker, 2017). In the functional structure departments divisions are conducted on the basis of similar tasks functions. In that, the organization will be grouping members based on their responsibilities and purposes (Gartner & Bellamy, 2009). In short, the functional structure will involve dividing the firm into distinct units on the basis of functions as advertising, exploration, management, procurement, product development and technicians.

The use of the functional structure was selected given that it permits high specialization degree for all the involved staffs and developments can be measured at ease (Gartner & Bellamy, 2009. In addition, the structure is capable of creating major barriers, particularly where there are distinct functions thus causing inefficiency due to products or targets variety. It is, therefore, suitable for Modern Tech Company given that it provides products that are within a single line. In addition, the structure is suitable given that the company is particularly small and will result in increased concentration, high control and efficiency (Gartner & Bellamy, 2009.

One major functional organization benefit is that it results in specialty. Every unit usually operates as a unique by running distinct roles (Gido, Clements, & Baker, 2017). In this context, staffs concentrate mainly on their designed functions thus developing unique knowledge and expertise as they progress. As their expertise develop the units and the company in general benefits from this knowledge and experience (Gido, Clements, & Baker, 2017). In addition, throughput and efficiency are increased. Any staff within the professional units operates different functions with increased speed, convenience, and efficiency which tends to expand productivity. Understanding different roles adequately allow employees to operate with much confidence with lower mistakes since the operations are clear (Gido, Clements, & Baker, 2017). This creates reliability, improves on superiority and consumer satisfaction.  However, given the complexity of managing the structure a strong management that seeks to promote teamwork and productive relationships will be required.

Influence of the Founder(s)

Modern Tech Company will be possessed and managed by Anderson Stevens, who is a retired criminal justice investigator in America with two master’s degree in criminality justice and electrical engineering from California University. In addition, he is a certified electoral and electronics electrician with different company brands where as he has worked for several years with the justice department. In running and developing the business he will collaborate with his son who holds vast experience in regard to electronics sales and marketing.

Management Style

Management is the most important part of business given that it does not only determine operations but also the outcomes (Glynn & Woodside, 2012). For a starting up business in a highly competitive sector, there is a need to focus on strategic operation and reliable in the quest of developing consumer’s trust. The company is a consumer centric one and therefore, it must focus on the needs, demands, and preferences of the target consumers. The company will apply a participative managerial style which is popularly referred to as democratic leadership.  This style was mainly selected because it calls for the input of all the employees within the corporation in decision making. All the staffs in the company are offered with appropriate data in regard to the firm’s problems and the probable solutions which are discussed collaboratively and the desire of the majorities normally determines the most probable action for the corporation to adopt (Glynn & Woodside, 2012). Democratic leadership is usually slower in regard to settling for suitable decisions but in this case the most suitable given that the corporation cannot afford to make mistakes in the starting levels (Glynn & Woodside, 2012).

Participative managerial style holds several advantages that are likely to benefit Modern Tech Company. To begin with, it results in acceptance (Mahagaonkar, 2010). The staffs under this leadership are willing and ready to embrace the decisions and strategies because they feel accounted. This results in lowering the level of resistance in general for any new operations which lead to speedy application of fresh thoughts. In addition, it leads to increased motivation because the staffs that are given the opportunity to play part in running the organization acquires a personal sensation of success liability (Mahagaonkar, 2010). Due to the opportunity to engage in making decisions the motivation is retained at high levels as a form of appreciation.

Creativity and retention are also enhanced. In that, when, the employees are encouraged to offer their opinions in regard to the firm’s issues there are variety of thoughts to be acquired (Mahagaonkar, 2010). Operating in the electronics sector necessitates innovativeness in fulfilling the changing technology based consumers preferences and thus a participative leadership authorizes staffs to utilize their imagination in creating more productive and efficient working procedures. With high morale and satisfaction comes low employee turnover and the retention benefit contributes to career development as well as organizational growth by encouraging participation for the general, success of the firm which ultimately lowers the working costs and time (Mahagaonkar, 2010). Also, the company will work to ensuring that everyone gets a recognition because high participation is vital in ensuring that growth is enhanced given that the lack of good recognition results in the loss of morale, reduced performance and inferior services which might destroy the goal of creating better relationships (Martínez-López, 2014).

How Management Will Align Organizational and Management Goals

            In aligning organizational with management goals the company will first ensure that feedback and responses are constant. In that, the provision of continuous feedback works in ensuring high performance given that this response act in boosting the existing relationships (Martínez-López, 2014). Second, the company will allocate duties in an appropriate manner. In that understanding, the respective roles eliminate any form of conflict and confusion which is essential for tracking goals and ensures that performance is well accommodated (Martínez-López, 2014).

How Management Will Align Organizational and Employee Goals

Employees might not always sense personal motivation to the achievements of the firm’s objectives such as expanding sales, markets or focusing on quality. However, they can be motivated to embrace them and participate by aligning the company’s goals with their own (Mathur, 2010). To begin with, this can be achieved by ensuring that the company makes their needs to be a priority in order to create a sense of belonging and security which will have a positive impact on morale, preservation, and inspiration. Next, the company will focus on explaining the benefits associated with the organizational objectives in the long term. This will not exclude communicating success and issues to ensure that the morale is not affected which might affect both productivity and financial generation. In addition, the company will personalize rewards, incentives, and welfares in managing performance. In addition, some resources will mainly be devoted to social responsibility. Employees owning the belief that they work for the better community cause are characterized by high satisfaction sense in regard to their operations (Mathur, 2010).

SWOT Analysis

Strengths

Modern Tech is characterized by several strengths which will be useful in ensuring that it achieves success. The strengths include high barriers to entry into the electronic sector, limited starting up threats, strong and knowledgeable management, and low competition for cost leading companies and the ability to find more consumers. In that in the market that is associated with fewer risks, any company will operate under fewer threats (Sam & Makor, 2011).

Weaknesses   

The corporation has limited starting up capital which might affect operations. The electronic market does not only necessitate much capital but also financial stability (Sam & Makor, 2011). In addition, the transportation expenses are also quite high which might affect affordability of products. There will be limited pricing changes given that lowering extensively might affect the generation of revenue.

Opportunities   

The ability to expand to a wider market is a major opportunity given that after acquiring stability the company will gain the capability to adopting flexibility. The other opportunity lies in the capability to extend products and services to the electronic sector to incorporate inclusiveness (Walker, 2011).

Threats

The electronic industry is characterized by high competition due to the existence of established corporation that has acquired significant consumer segments (Walker, 2011). The company will, therefore, necessitate more marketing to inform the public of its services which will ultimately add to its operating cost. The other threat is the change of regulation which might affect sales. Consumer preferences are also changing consistently.

Expected Life Cycle

Similar to a human's existence cycle every business goes via development stages (Gido, Clements & Baker, 2017). The seven major stages that the business will undergo will begin with seed stage. This is the level where the business exists as just a thought which denotes a fresh business birth. Within this state, the company will be necessitated to outweigh acceptance challenges to pursue its market. This stage is focused on matching the existing opportunities with the company’s skills, capabilities, and knowledge while accounting for suppliers and any regulation.

Startup Stage

This is the second level where the birth of the company has occurred and therefore exists as an illegal one (Gido, Clements & Baker, 2017). The financial estimation will be done prior to the business initiation and the focus of these level is to account for the company’s profit needs, consumer demands and market operations. The main objective will be to establish a consumer base and an adequate presence within the sector while assessing and controlling cash use. Money sources will be from owner, family, consumers, donations, and friends.

Growth Stage

Given that the business is already out of the nurturing stage and the consumers and profits will be increasing along with some rising issues and venturing opportunities this stage will be focusing on running the company in a more strategic approach with the capability to handle increasing consumers and sales (Gido, Clements & Baker, 2017). This stage involves operating under increasing issues which shows that effective administration is necessary.

Establishment Stage

The development of sales can be categorized as manageable and therefore the issues surrounding demands, marketing and competition should be accounted adequately. The focus of this stage is in production and development and therefore, competing in established markets necessitates firm operating strategies in collaboration with subcontracting and mechanization in the quest of enhancing productivity (Glynn & Woodside, 2012).

Expansion Stage

This level is characterized by a unique development into fresh distribution and operating markets. There are more difficulties within this stage because market expansion is extensive and necessitates more efforts (Glynn & Woodside, 2012). The objective of the company within this stage will be to enlarge its services and products to other markets and the existing ones while developing its consumer base.

Decline Stage

Due to socio-economic transformations, market situations and economic decline sales and revenue production can be lowered which might lead to the end of the new firm (Glynn & Woodside, 2012). The company will mainly focus on establishing fresh chances as well as business ventures while reducing costs in order to retain its financial stability.

Exit Stage

When the business is unable to sustain its operations the resulting solution is to close down and thus an exit approach is required (Glynn & Woodside, 2012). This cannot be performed without performing adequate valuation. The focus will be to generate appropriate valuation by assessing its resources, challenges as well as opportunities which will translate into a transition plan. The company will exit by merging and acquisition by another larger corporation to sustain its value if it is unable to operate.

References

Andreas, F. (2011). A simple path to sustainability: Green business strategies for small and medium-sized businesses. Santa Barbara, Calif: Praeger.

Frankl, P., & Rubik, F. (2000). Life Cycle Assessment in Industry and Business: Adoption Patterns, Applications and Implications. Berlin, Heidelberg: Springer Berlin Heidelberg.

Gartner, W. B., & Bellamy, M. G. (2009). Creating the enterprise. Mason, OH: Thomson South-Western.

Gido, J., Clements, J. P., & Baker, R. (2017). Successful project management. Cengage Learning.

Glynn, M. S., & Woodside, A. G. (2012). Business-to-business marketing management: Strategies, cases and solutions. Bingley, UK: Emerald Group Pub.

Mahagaonkar, P. (2010). Money and ideas: Four studies on finance, innovation and the business life cycle. New York: Springer.

Martínez-López, F. J. (2014). Handbook of Strategic e-Business Management. (Handbook of strategic e-business management.) Berlin, Heidelberg: Imprint: Springer.

Mathur, U. C. (2010). Global business strategies: Text and cases. New Delhi: I K international.

Sam, S., & Makor, J. (2011). Strategic Internet Business Management - An Assessment of Internet Business Growth Strategies: Empirical Evidence from listed SMEs in Denmark. Munich: GRIN Verlag GmbH.

Walker, A. (2011). Organizational behaviour in construction. Chichester, West Sussex, UK: Wiley-Blackwell.

EXPANSION STRATEGY AND ESTABLISHING REORDER POINT

Case 1: Bell Computer Company
Compute the expected value for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of maximizing the expected profit?

Expected profit for medium- scale project= $1000 X 30.2654

                                                                = $302654

Expected profit for large- scale project = $1000 X68.3130

                                                              = $683130

With regard to this computations, is should be realized that the more risk averse executives hedge the company’s profitability through making several small-scale investments. Thus, in the process of expanding its economic activities in the emerging market, the company will be forced to forge limited distributional of its new computer products or entering into operational alliances with other companies in the industry (Anderson et al., 2013). Likewise, this indicates that it will be hard to estimate whether such an investment will truly reverse the right to gain or lose in the market.

On the other hand, in venturing into a large-scale project, it is absolutely critical for the management authority of the company to compute the expected profit as well as weight it against the potential risks to be associated with such a project before financing it. By computing the expected net income assists in clarifying the big picture, particularly when such a project whose profitability margin can vary widely under different scenarios (I.S.R, 2013).

Conversely, the demand for the company’s new computer products will be found to be relatively higher during the first few years but in case the initial consumers discover that such a product is unsatisfactory, will definitely decline to lower level thereafter.  Equally, high opening demand may show the possibility of sustained high volume in their market. In case the demand for new computer products is relatively higher and the company does not have the potential of expanding within few years of establishment, it is important to introduce a more competitive product into the market (Anderson et al., 2013). In the process of venturing into such a project, it means that the management authority of the company should ensure that they have lived with it regardless of the size of the market. The main reason for this consideration is because in case the company opts to venture into a small scale project, it means that the management authority will not have the opportunity of expanding the project when the general demand is higher during the initial period.  Therefore, with a large scale project, the company will have the opportunity of maintaining its operations as to point of making a tidy profit on the low volume even if demand might be low during the introductory period (I.S.R, 2013).

Nevertheless, in case the market might be large, with a large scale project the management will have the capacity of pushing the business into the newer period of profitability. The development department, especially the project manager will be able to push and expand such a large-scale project to the extent of exploiting the initial major product developments realized from the project for years to come (Tavana, 2013).

Compute the variation for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of minimizing the risk or uncertainty? 

Profit variation = expected profit for large- scale project- expected profit for medium- scale                                  project

                        = $683130 - $302654

                        = $380476

Considering the variation in profit for either of the two alternatives, it means that the possibilities for cash inflow or out-flow during its initial stage range through a whole spectrum. Equally, this will largely depend on the number of partially or independent variables which are subjected to changes which influence i.e. economic climate, demand, cost, technological advancement, and so on.

In this case, it is; therefore, clear that the range of variability of cash flows to rise or fall can be computed readily from the knowledge of the key indicators and the uncertainties surrounding them. Thus, by making systematic and sound strategic decisions under uncertainty requires that the management authority to formulate an approach which has the potential of avoiding any risks in the market (I.S.R, 2013).  What will follow is the framework which assists in evaluating the level of uncertainty or risks which will be surrounding strategic investment decisions before deciding to finance any project. This indicates that there exists no solid market research which has the capacity of forecasting consumer demand for the company’s product (Tavana, 2013).  

The incremental investment of the large scale investment is the one which will offer useful information that will enable the firm to be privileged in expanding its economic activities in the near future. In other words, the management authority will be forced to confront several uncertainties concerning demand, technology, and the relations which exist between all the resources to be used in manufacturing new computer products (Anderson et al., 2013). 

In such a case, it implies that the management authority of the company will be given the capacity of identifying any opportunity in a low-uncertainty business environment which has can be developed or established within the prevailing market structure.  Because of that, this shows that the best level that the management authority will adapt is the one which will assist them in creating value through innovations in their product and enhancing improvement of the business systems without necessarily changing the industry (Tavana, 2013).  

Case 2: Kyle Bits and Bytes

What should be the re-order point? How many HP laser printers should he have in stock when he re-orders from the manufacturer?

Re-order point = {average daily utilization rate X the lead time (in days)}

                        = (200/7) X 7

                        = 200 units

First, re-order point is regarded as being the inventory unit the business has on hand which assists in triggering the purchase of the determined amount of the replenished inventory (Lall & Sahai, 2008). For that reason, in case the supplier fulfillment and the purchasing process works as planned, it means that the re-order point must lead to the replenishment inventory arriving once the last stock is used up or sold. The end result of this is to ensure that there is no interruption in fulfillment and production activities while decreasing the amount of HP laser printers on hand (Toomey, 2000).

In addition, it should be noted that the re-order point for the HP laser printer can vary depending on the every item of inventory. The main reason for that is because every HP laser printer will have different rate of usage in any business organization. This, therefore, will require different amount of replenishing time of the HP laser printers once the orders have been made (Lall & Sahai, 2008).

This then indicates that in case the inventory balance of the HP laser printer declines, Kyle Bits and Bytes will have to place an order. The newer units, therefore, have to arrive seven days or one week later once the last on hand HP laser printers have been used up. Contrary to that, although this only depends on the average usage, the truth is that the demand may increase or decrease below the average level (Toomey, 2000). This suggests that there might be some stock left when the replenishment order arrives. This has the capacity of reducing the risks that the company will have experienced as a result of stock-out situation.

References

Anderson, M. A., Anderson, E., & Parker, G. (2013). Operations Management For Dummies. Hoboken: Wiley.

Lall, M., & Sahai, S. (2008). Entrepreneurship. New Delhi, India: Excel Books.

Tavana, M. (2013). Management theories and strategic practices for decision making. Hershey, PA: Information Science Reference.

Toomey, J. W. (2000). Inventory management: Principles, concepts and techniques. Boston [u.a.: Kluwer Academic Publishers.

Advanced Program Management

Question 1

Throughout the approximation and planning procedure, effort and duration are established in relation to the premeditated jobs. Effort refers to the general work amount units that are necessitated in the completion of a specified job (Hill, 2011). Effort in this context might also be described as the necessary labor in terms of time and resources. So that task duration can be determined, the necessary effort for the job completion must be established. On the other hand, duration refers to the general period that is necessitated in the execution of a specified job. In that duration is measured in terms of days, weeks or even hours, months, years and so on (Hill, 2011). Duration is designed after determining tasks to be performed, those to perform them and availability of performers. Have the projection of efforts then comes duration design. This means that duration and effort are closely related given that the projection of one leads to the formulation of the other (Hill, 2011). They are all objected at ensuring that specified jobs are completed and they contribute to smooth projects flow.

Question 2

Rapid and effective changes are occurring in the sector of project management due to business expectations, demands, necessities and practices changes. Agile is a project management trend that is centered on creating continuous improvement, increase elasticity and enhance superiority (Crowder & Friess, 2014). Agile can be useful in increasing business productivity and driving operations towards innovativeness.  In that, most corporations are today utilizing agile in the development of services and products which promote innovativeness. This trend does not only seek to differentiate business operations but it is objected at improving quality an aspect that is vital in acquiring success in the business world today. Agile Project Management is highly centered several methods such as lean and scrum which are mainly grounded on communication, elasticity, individuals and produces (Cobb, 2011). In this context, it is clear that the trend can be essential in influencing high and quality performance.

References

Cobb, C. G. (2011). Making sense of agile project management: Balancing control and agility. Hoboken, NJ: Wiley.

Crowder, J. A., & Friess, S. (2014). Agile project management: Managing for success. Springer.

Hill, P. R., & International Software Benchmarking Standards Group. (2011). Practical software project estimation: A toolkit for estimating software development effort & duration. New York: McGraw-Hill.