Different Type of Budgeting Technique

Budgeting lies at the foundation of every financial plan. It doesn’t matter if you’re living paycheck to paycheck or earning six-figures a year, you need to know where your money is going if you want to have a handle on your finances. Unlike what you might believe, budgeting isn’t all about restricting what you spend money on and cutting out all the fun in your life. It’s really about understanding how much money you have, where it goes, and then planning how to best allocate those funds. Here’s everything you need to help you create a budget using different approach. a)Incremental Budgeting This is where the current budget and actual figures act as the starting point or base for the new budget. The base is adjusted for forecast changes to, for example, the product mix, sales volume, sales price, expenses and capital expenditure that are expected to occur over the next budget period. It is called incremental budgeting as the approach does not focus on the base, but focuses on the increment (the changes from the base). An example would include increasing last years operating expenses by the rate of inflation to calculate the new budgeted figure. The major disadvantage of this is that the major part of the expense (the base) does not change and in fact is overlooked and not questioned under this approach. For example the base figure may be distorted due to extraordinary events in the previous period which are not expected to reoccur. Thus if this is not taken into account, the budget could be misleading. Advantages of Incremental Budgeting Easy to implement If you are looking for a budget that is very simple to implement, incremental budgeting might be for you. You do not have to send your department managers to any special type of training in order to utilize this budgeting system. It is easy to learn and the process can be completed within a very short period of time. Gradual Change One of the benefits of incremental budgeting is that it allows gradual change for the business. If you value gradual change instead of trying to change everything quickly, this type of budget is ideal. Many times, if your business tries to change too fast, it can become unstable and lose sight of what it does best. There are some other benefit regarding the incremental budgeting: * Flexibility–This type of budgeting is very flexible. You can easily do it from one month to the next. This allows you to see change very quickly when you implement a new policy or budget. * Avoid conflict–Companies with many different departments often run into conflict between departments because of their different budgets. With this method of budgeting, it is easier to keep everyone on the same page and avoid conflicts between departments. * The model operates under a stable and predictable system and any change will be gradual. * Managers can operate their departments on a consistent basis. * Conflicts should be easily avoidable if departments can be seen to be treated similarly. It is Appropriate where there is a large number of cost centres/budgets to calculate and forecasts do not change significantly from one year to the next * Co-ordination between forecasts is easier to achieve. * The impact of change can be seen quickly. Disadvantages of Incremental Budgeting * It assumes that activities and methods of working will continue in the same way. * It allows no proper ince ntive for managers to develop new innovative ideas. * Its normally on an upward trend, hence providing no incentive for managers to reduce costs. It encourages spending up to the budget limits so that future estimates are maintained next year. * The forecast may become out of date and no longer relate to the level of activity or type of work being carried out. * The priority for resource allocation may have changed ever since the prior estimates were originally set. * May perpetuate past inefficiencies. In other words incremental budgeting does not cause serious challenge to the status quo of managers concerned because different methods of achieving performance objectives are not put to test * There may be budgetary slack built into the estimates, which is never reviewed. In other words Managers might have overestimated their requirements in the past in order to obtain a forecast which is easier to work towards, and which will allow them to achieve favorable results. * Does not account for change–This method is based on the idea that expenses will run pretty much as they did before. However, in business, this is rarely the case. There are always variables. * No incentives–Such a simple method of budgeting really does not provide your employees with much reason to be creative. They have no incentive to innovate and come up with new ideas or policies. When a budget allows a little extra room for innovation, you might find that your employees come up with something great. * Use it or lose it–Many employees view this as a â€Å"use it or lose it† system. They know that next year's budget is going to be incrementally based on this year's. Therefore, if they do not spend everything that is allocated to them, they may not have enough money to work with next year. This creates an environment where waste is encouraged. (b)Zero Based Budgeting his method was briefly popular during the 1970s but didn’t quite make it as a widely held practice. Yet in today’s current business set-up, the method is being revived and regarded as the better approach. ZBB starts off with practically nothing on which to base one’s budget assumptions. This stands in contrast to the traditional method, in which managers and supervisors calculate their proje ctions by using the previous year’s budget as their baseline. ZBB as a budget preparation method lost its popularity due to the numerous documentation requirements imposed. Managers and supervisors have to justify every projected cost and its purposes, plus the presentation of one or more alternative courses of action, which should be similarly justified. The procedure doesn’t end there, as every proposed budget and its alternatives have to be measured in terms of productivity and efficiency performance, including the results of cost-to-benefits analyses. Moreover, the manager is also required to present the consequences, in case a majority of the top management members would vote against the proposed cost projection. It’s no wonder that ZBB lost its following in its early years, since the procession of numerous calculations, justifications, analyses and documentation are indeed too tedious for comfort. But that was in the '70s, when computerization was still in its budding stage and personal computers were unheard of. Under the current business set-up, in which research and data analyses are common, all those requirements can be produced in a jiffy, by simply using business intelligence capabilities. Inasmuch as the best budget estimations are those that are closest to the real thing, zero-based rojections may finally come of age by getting the support it needs from today’s data marts and data warehouses. (Charles, 1995) Pros and Cons of Zero-based-budgeting This budget preparation method is actually a spin-off of the budget plans introduced during the 1920s. Due to the excesses and corrupt practices of local public officials, the federal government developed a system of controlling the disbursements of public funds by way of a revised budget plan. The success of this method encouraged other industries to adopt the same system. It was modified through the years, along with certain developments in the methods of accounting for manufacturing costs. However, as businesses grew and flourished, the financial managers and accountants became overly burdened by the processes involved in developing ZBB plans. Too much time and effort were being wasted in collecting, summarizing and analyzing recorded data, only to be set aside for future implementations, which oftentimes did not materialize. Despite this drawback, ZBB was regarded as a sensible approach because of its high degree of efficiency in controlling costs and maximizing productivity. In fact, government sectors and non-profit organizations still make use of the ZBB approach, as it allows each organization to visualize the incoming year’s performance based on present trends and conditions. In summarizing all documentation to support the master budget, redundancies in initiatives and functions become more visible and are thus eliminated. Although no longer popular, some industrial companies still make use of a zero-based budgeting approach on a per-department or per-project basis. This is particularly true if the departments or projects require a greater degree of cost leveling, inasmuch as their outputs do not directly contribute to business profitability Financial managers today are hardly affected by the re-emergence of this budget approach, as their trainings are basically founded on methodologies that make use of research and data analysis. Not only that, the advent of PCs and business intelligence applications and tools makes the preparation of supporting documentation as easy as pie, so to speak. All they have to do is click or double-click on their mouses and the BI financial report writers will simply drill-down, drill-around, and drill-through databases and data warehouses or even from web-based browsers to produce reports that will provide up-to-date information. There is spreadsheet integration and its capability to automate calculations, as well as the intelligent trees, process diagrams, and balance scorecards that can establish hierarchies, workflow mapping and key performance indicators. The drawback that was once attributed to the zero-based budget planning method has become part of its history, but its usefulness fits perfectly with the methodologies of the 21st century. (Cantoria, 2011) (c)Rolling Budget Businesses are increasingly using rolling budgets. Also called continuous budgeting, rolling budgets always involve maintaining a plan for a specified time period in the future. To implement rolling budgets, many advocate leveraging new technological resources, which means software. It must be understood that the technology (e. g. , bolt-on software packages) is not the solution. It is a tool by which and an environment in which management can have the opportunity to develop solution sets. Published surveys of financial officers of the largest industrial companies in the United States, Australia, Holland, Japan, and the United Kingdom show a number of interesting similarities as well as differences in budgeting practices across countries. (1) First, the use of master budgets is very widespread in all of these countries. Another significant finding is that financial managers in many countries distinguish between cost behavior patterns–variable versus fixed costs–for a common reason: They want to prepare more meaningful budgets by building flexibility into the model. How do these facts impact the concept of rolling budgets? Rolling budgets always involve maintaining a plan for a specified time period in the future. This result is achieved by adding a new time period in the future as the current time period that ended is dropped. Large companies, such as Electrolux and General Electric, prepare strategic plans and then integrate annual operating budgets that are divided into four-quarter rolling budgets, and smaller high-tech public companies, such as Keithley Instruments in Solon, Ohio, follow a similar pattern of planning. The annual operating budgets are prepared based upon best estimates of what management expects to occur and wants to achieve during the coming year. Flexibility is built into the process by considering how costs and revenues will change if different levels of activity occur (e. g. flexible budgeting), and each quarter's changes are made to reflect changes in the economic and financial environment–things such as what the competition is doing, how the economy is spending for capital goods, and any planned changes in their product mix (adding or dropping a product line). In short, sound managers operate an entity with one eye always on the horizon, and a well-prepared business plan as reflected in a â€Å"flexible rolling budget† can be one of the financial managers' best tools to assist them in their role of planning and controlling the operations of this company. For publicly traded companies, an earnings forecast â€Å"miss† can have an immediate and devastating impact on share price. And for both public and private companies, effective allocation of resources mandates that the organization have the best possible understanding of what the short-term and long-term future brings. The speed of change in today's economy has generated a trend toward adopting continuous forecasting as part of the planning process. While this type of â€Å"rolling forecast† offers many benefits, organizations often have trouble separating their forecast from and coordinating their forecast with the operational budget. Instead of truly forecasting–which ideally should be a higher-level projection–organizations end up preparing mid-year or even quarterly â€Å"re-budgets,† with all of the associated effort. The result is a budget that takes too much time and effort–not a forecast that provides vision and direction. Advantages of Rolling budget No More Free Ride The result: an always-current financial forecast that reflects not only the company’s most recent monthly results but also any material changes to its business outlook or the economy. In addition, it provides fewer opportunities for account directors to ride the coattails of past performance. Although traditional one-year budgets are still the norm at most companies large and small, many accountants argue that rolling budgets can be a far more useful tool. Unlike static budgets, they encourage managers to react more quickly to changing economic developments or business conditions. They discourage what is too often a fruitless focus on the past (â€Å"Why didn’t we meet our numbers? †) in favor of a realistic focus on the future. And they produce forecasts that, over the near term, are never more than a few months old, even when companies are rolling them forward on a quarterly basis—the more common approach—rather than REL’s monthly basis. Implementing rolling budgets doesn’t necessarily require any fundamental change in the way a company has been doing its budgets—except, of course, it no longer does the job just once a year. However, companies that decide to step up to rolling budgets may want to take advantage of the decision to make a change and consider what else they can do to improve the process. After all, if a company can get everyone on board to make such a fundamental change, a further nudge to make the process more effective and efficient in other ways may be possible, too. (Morrow, 2010) The Problem Of Relevance In the view of many accountants, traditional budgets too often are useless because they are out of date soon after they are assembled. Assuming that much of the decision making that goes into them gets done in the fourth quarter of the prior year, by the end of the following year, traditional budgets reflect thinking and data more than 12 months old. Not surprisingly, such documents tend to get short shrift from front-line managers. In worst-case scenarios, they can even promote behaviors and business decisions that are counterproductive. Consider the real-world example of a Fortune 500 company that has been talking with REL about how it might improve its forecasting to produce better financial results. The company uses a traditional static annual budgeting process in which it sets monthly sales goals for each of its products. If the company misses its sales targets in the first month, product managers will typically push those projected sales into the final quarter of the year. By doing that, corporate management is acting as if the outlook for the full year remains unchanged even though sales were off to a slow start. But if the slow pace continues and product managers begin to realize that their lost sales can’t be made up in the last quarter, they start to budget them out over all of the remaining quarters of the year. Frequently, they wind up running massive discounting programs at the end of each quarter to hit their annual targets. Fortunately, the company can afford such budget maneuvering because it enjoys relatively high margins on its products, but such manipulation isn’t maximizing its return on investment. Acting Rationally The static budget encourages managers to create artificial demand for their products, not end-user demand. In other words, the company stuffs its distribution channel and simply delays future shipments. If the company had a more realistic budget, product managers would be able to act more rationally, eliminating the last-minute forced discounts. Payne, 2010) Not only are static annual budgets restrictive, it turns out that many managers don’t really like them. Most of the clients complain that their current planning process is extremely painful and time-consuming. General manager of the Stanford, Connecticut, office of Parson Group, a national consulting firm focused on finance, accounting and business systems. Assuming the client is operating on a calendar year, everyone runs around feverishly in October and November to do budgeting, and then at the end of the process, they’re happy to get it over with—knowing they don’t have to do it again until the next November. Manage The Information Implementing a rolling budget involves more than going through the annual budgeting process four times a year instead of one. Because the time between budgets has been compressed, management must access and process information more quickly than it was able to do in the past. To do that, line managers must become more involved in the process and the company must embrace technology that will allow it to quickly capture and disseminate the raw data needed for decision making and forecasting. Most organizations today rely on Microsoft Excel spreadsheets to do their budgeting. They work, but they can be laborious, requiring finance managers to piece together input from all the operations managers throughout the organization. The process was slow and exhausting, producing a static and reactive product that was built on data that was typically at least six months old. Today, that company uses a specially designed budget planning, forecasting and analysis software product to do the job. (For a list of such software, see the sidebar â€Å"Software for Budget Planning and Analysis. ) This kind of software makes it easier for managers throughout a company to access, enter and share data on a real-time basis, using the Internet as a communications medium. â€Å"Managers used to spend a lot of time allocating expenses among different segments of the business. Since the new software automates the process, managers can spend more time analyzing the data. (Swaller, 2010) The Big Pi cture For public companies, the benefits of more timely and accurate budgets may ultimately extend beyond operations. Under Wall Street’s close scrutiny, meeting earnings forecasts has become more important than ever. A misstep, even one that’s just a penny per share below expectations, can translate into a sharp stock sell-off and, in the long run, drive up a company’s cost of capital. Theoretically, between rolling budgets and predictive accounting, companies can minimize the controllable factors that cause inaccurate earnings projections, Therefore, they would have fewer actual-to-forecast variations, which in turn would help cut down on stock price volatility. † Although no budgeting technique can predict the future, these techniques allow companies to get much closer to the ideal. The only holdback is the willingness of a company’s managers to use these new technology tools that are now available. Unfortunately, most â€Å"static† annual budget processes fail to provide a clear vision of the enterprise's impending direction. Forecasting allows organizations to close the gap between the overall strategic plan and the detailed operational budget. An ideal planning cycle includes an ongoing forecasting component that flows directly from the overall strategic plan and integrates with the operating budget. The output from this higher-level planning system then directly impacts the outcome of the detail budget. This principle of a continuous/rolling forecast that drives a target-based detail budget is a key financial component of many organizations' highest-level strategic planning process. The â€Å"Strategic Plan† involves many nonfinancial processes (competitive analyses, initiative-focused plans, and the like) and becomes the driver for the rolling forecast. The forecast translates broad-based initiatives into key statistical and operational factors and results. The operating budget, in turn, provides plans and budget-to-actual control functions at the lower levels of the organization (e. g. cost center) Another useful feature of the forecasting system is to visually portray trends of such metrics. For example, a forecast for product revenue might include the historic revenue-per-salesperson ratio and allow a manager to forecast this future rate, in combination with the expected number of salespeople, in order to determine future revenue (see Figure 2 for a parameter-driven forec asting layout). Statistic- or parameter-driven results provide a useful basis for review of the forecast. (Montgomery, 2010) DISADVANTAGES OF ROLLING BUDGET. 1. It is very expensive because of the elaborate set up of the budget department. . The budget might be so reviewed on such a manner that there will be no significance between the budgeted and actual results. The managers may tune budget to actual and it will not serve as a good yardstick 3. It requires account forecast of changes in economics, political, social ecological and business conditions. In practice this changes may not be ascertainable because of lack of statics. Above is the major limitation of rolling budget. 4. It is very expensive and elusive fro small organization. 5. It is cumbersome for data collection except where computer is in use. (d)Activity Based Budgeting Activity based budgeting is an approach to the budgeting process that focuses on identifying the costs of activities that take place in every area of a business or organization, and determining how those activities relate to one another. The data regarding those activities and how they relate to one another is used to establish goals that allow the organization to move forward. By understanding the relationship between all the activities of the organization, it is often possible to create realistic budgets for each department that are more equitable and in the best interests of the company in the long run. The concept of activity based budgeting is different from the process known as cost-based budgeting. Often, the cost-based approach relies on assessing the actual expenditures connecting with a previous budgetary period, and simply adjusting those amounts based on the current rate of inflation, or to account for changes in the amount of revenue generated. By contrast, activity based budgeting is more concerned with what is being done within the organization, how those actions or activities work together, and then allocating funds to each activity based on how much it will cost to successfully complete those activities. Brimson, 1991) Proponents of activity based budgeting see this approach as more realistic, since it involves looking inward at activities and costs rather than basing the budget on outward influences. From this perspective, this strategy is understood to create financial forecasts that are more accurate, and thus prompt the organization to make the most efficient use o f its resources. As a bonus, the analysis of each activity and its contribution to the ongoing success of the organization means that any activities that do not appear to relate to other activities within the organization structure may in fact be unnecessary, and can be eliminated without having an adverse effect on the overall operation. Those who favor a cost-based approach over the use of activity based budgeting note that this approach does not necessarily allow for the possibility of events such as an increase in the cost of raw materials or the need to replace outmoded equipment. According to this line of thinking, the inward focus of the activity based method only accounts for part of the data needed to develop a workable budget. Only when this inward analysis is coupled with consideration of outside factors that could exert some degree of influence during the upcoming budgetary period can the organization hope to draft a budget that is truly practical and likely to meet the needs of the organization over the course of the upcoming period. ( Gietzman, 1992) Disadvantages of Activity-Based Budgeting Complexity The many advantages of activity-based budgeting notwithstanding, this technique remains a comprehensive and time-consuming exercise. The process requires identification of activities, estimation of activity output demands, and estimation of the costs of resources needed to provide the demanded activity output. The budgeting of physical inputs and costs as a function of a planned activity requires the use of an activity-cost hierarchy and making estimates on the consumption by such activities. Activity-based costing bases itself on defining or analyzing the relationship among costs and activities, which might not always be possible. Even otherwise, the contextual information that plays an important role in shaping the results may not always be available or considered. Success of activity-based budgeting depends on a thorough and in-depth understanding of the business processes and an accurate activity analysis. Not all managers remain competent to perform such tasks, and the resultant distortions make the activity an exercise in futility. Resources Among the major disadvantages of activity-based budgeting is its consumption of organizational resources. Spending too much resource on an analytical function such as activity-based budgeting becomes counterproductive. The complexity of the activity-based budgeting exercise means that it takes away considerable organizational resources in the form of managerial time and money. Such resources, if deployed in a core operational activity, would contribute to a much better bottom line. The broad scope of activity-based budgeting invariably necessitates an activity-based budgeting software, as well as training all managers to use the software and learning how to make correct activity analyses, adding to the resource demands. Duplication A major limitation of activity-based budgeting is that it is not a control budget and as such does not replace the department or line-item budget. Activity-based budgeting only provides supplemental information, and it acts as a panacea rather than a tool. It therefore does not eliminate or substitute any process but adds to the administrative functions of an organization. Short-Term Focus Finally, another major activity-based budgeting disadvantage includes its tendency to focus on the immediate and short term and ignore the long term. Activity-based budgeting uses historic data for forecast analysis, which may not always be practical. Focusing on activities that create immediate results might work well in the short term, but might cause long-term damage to an organization. While activity-based budgeting helps the organization if implemented with the correct data, preparing an activity-based budget with distorted data runs the risk of arbitrary budget cuts and creates a dysfunctional organization. (Morrow,1991) Behavior Aspect of Budgeting A main problem involves a variety of behavioral conflicts that are created when the budget is used as a control device. To be effective, the budget must be used by the managers it is designed to help. Thus, it must be acceptable to all levels of management. The behavioral literature on budgeting supports the view that the budget should reflect what is most likely to occur under efficient operating conditions. If a budget is to be used as an effective planning and monitoring device, it should encourage a high level of performance and efficiency, but at the same time, it should be fair and obtainable. If the budget is viewed by managers as unfair, (too optimistic) it may intimidate rather than motivate. One way to gain acceptance is referred to as participative (rather than imposed) budgeting. The idea is to include all levels of management in the budget preparation process. Of course this process must be coordinated by a budget director to ensure that a fair budget is obtained that will help achieve the goals of the total organization. Rahman,2011) Another way to reduce the behavioral bias against budgeting is to recognize the concepts of variation and interdependence when using the budget to evaluate performance. Recall from our discussion of the statistical control concept in that there is variation in all performance and most of this variation is caused by the system , (i. e. , common causes) not the people working in the system. The concept of interdependence refers to the fact that the various segments of a company are part of a system. Inevitably, these segments, or subsyst ems influence each other. Failure to adequately recognize the interdependencies within an organization tends to cause behavioral conflicts and motivate participants to optimize the performance of the various segments (subsystems) rather than to optimize the performance of the overall system. THE ‘BEYOND BUDGETING' MODEL – PRIVATE SECTOR In the private sector, managers are forced to consider current and future opportunities and threats, particularly where rolling monthly forecasts of financial performance operate together with a focus on other non-financial ‘value drivers'. In essence, the ‘beyond budgeting' model entails devolved managerial responsibility where power and responsibility go hand in hand. The view held by proponents of the beyond budgeting model is that the following benefits may accrue as a result of its successful application by management: (Johnson,1995) * It creates and fosters a performance climate based on competitive success. Goals are agreed via reference to external benchmarks as opposed to internally-negotiated fixed targets. Managerial focus shifts from beating other managers for a slice of resources to beating the competition. It motivates people by giving them challenges, responsibilities and clear values as guidelines. Rewards are team-based, in recognition of the fact that no single person can act alone to achieve goals. * It devolves performance responsibilities to operational management who are closer to the ‘action'. This uses the ‘know-how' of individuals and teams interfacing with the customer, which in turn enables a far more rapid adaptation to changing market needs. * It empowers operational managers to act by removing resource constraints. Key ratios are set, rather than detailed line-by-line budgets. For example, gearing and liquidity ratios may be used to show there is enough cash in the bank to meet liabilities. Local access to resources is thus based on agreed parameters rather than line-by-line budget authorisations. This is aimed at speeding up the response to environmental threats and enabling quick exploitation of new opportunities. * It establishes customer-orientated teams that are accountable for profitable customer outcomes. These teams agree resource and service-level requirements with service departments via the establishment of service level agreements. It creates transparent and open information systems throughout the organisation, which should provide fast, open and distributed information to facilitate control at all levels. The IT system is crucial in flexing the key performance indicators as part of the rolling forecast process. THE PUBLIC SECTOR The legal framework of public sector organisations would probably prevent such a system being introduced. As with al l alternatives, the success of a particular process depends on the needs of the individual organisation. The alternative of the beyond budgeting model places considerable emphasis on the need for organisational, managerial and cultural changes in order that it may be successfully applied by organisations. This will present considerable behavioural challenges and individual managers might become overwhelmed by the complexity of decision-making in such an unregulated decision-making environment. In the public sector, the budget process inevitably has considerable influence on organisational processes, and represents the financial expression of policies resulting from politically motivated goals and objectives. Yet the reality of life for many public sector managers is an increased pressure to perform in a resource-constrained environment, while also being subjected to growing competition. In essence, a public sector budget: * establishes the level of income and expenditure * authorises that expenditure, once agreed, out of the planned income * acts as a control on expenditure and income * communicates policies and plans * focuses attention on the future * motivates managers and staff. While these issues may be common with the private sector, a number of issues arise which are specific to the public sector. For example, UK local authorities are prevented by law from borrowing funds for revenue purposes or budgeting for a deficit. If the beyond budgeting model is to allow greater freedom for managers then it will take a considerable change of mindset in the public sector to achieve the flexible agenda envisaged, especially where such flexibility would involve considerable and increased delegation to managers. One wonders therefore, from a behavioural perspective, if such managers are capable of making this change, as it would entail the adoption of a radically different approach. Local authority financial regulations also tend to prevent the transfer of funds from one budget head to another (otherwise known as virement) without compliance with various rules and regulations. These rules (expressed in the financial regulations of public sector organisations) will be consistent with the policies of the organisation and are designed to prevent expenditure on items such as permanent staff where such costs would go beyond the budget year and represent a commitment of future resources. Budgets in the public sector tend to concentrate on planning for one financial year ahead. Attempts are being made by UK central government, through the comprehensive spending review, to place an emphasis on the longer-term. However, considerable difficulties exist within the individual organisations that make up the public sector when creating a budget system that reflects longer-term objectives and goes beyond the annual cycle. It also remains to be seen how the relatively new system of resource accounting in central government will fit into the budgeting framework. Traditional methods of budgeting in the public sector centre on the bid system and incremental budgeting. These approaches focus on changes at the margin and generally reflect acceptance of the budget base from the previous year. This is partly a reflection of the size and complexity of public sector organisations, but also the internal political power of large departments, which protect their positions through their relative strength. Bid systems also minimise conflict, as debate and power struggles are only concerned with the ‘incremental' items. More advanced approaches are represented within financial planning systems, and include such concepts as zero-based budgeting and planned programme budgeting systems with a timeframe greater than one year. Whether the public sector can adapt to the concept of greater flexibility – which lies at the heart of beyond budgeting – remains a matter of ongoing debate. Such an adaptation would require a mindset which not only moves away from control but also requires a reduction in the internal political power of large departments which has been at the heart of public sector budgeting for many years. The desire to generate improved performance – essentially considered the driver for the beyond budgeting model – is present in the public sector evidenced in initiatives such as key performance indicators and ‘best value' plans. But this is not matched by a desire for the flexibility inherent in the model. In terms of beyond budgeting, managers in such organisations are likely to remain constrained by the inability of their organisation to change. Finally, the behavioral conflicts associated with budgeting are reduced by using flexible budgets when evaluating performance Other factors affecting behaviour Dysfunctional behaviour may be caused by the following budgetary problems: †¢ Budget targets that are perceived by employees as too difficult to attain will result in resentment and a feeling of stress. †¢ Budget targets that are perceived by staff as too easy to achieve do not provide a challenge and may lead to a slipshod performance by staff. †¢ Managers may experience a loss of autonomy by being hemmed in by the budget and not having sufficient flexibility to use their own initiative. †¢ Managers may become narrow minded, focusing only on their own department, and create disadvantages for the organisation as a whole. The emphasis on financial goals to the detriment of non-financial goals may havea debilitating effect on the organisation. Budgetary slack or sometimes it is referring to budgetary bias, is a common process where implementer intentionally underestimates revenue or overestimates expenses in the tight budget. Managers may attempt to create budgetary slack in three ways. Managers may deliberately underestimate the production or sales budgets potential. For example, the sales budget for the month of July is RM 1 million. If the manager is able to achieve the target budget then the sales budget for the following month will be increases to RM 1. million. Manager creates budgetary slack by undervalue the budget so that the budget for August will be easier to achieve although they are able to hit the tight budget. Manager may also attempt to achieve slack by cost overestimation. They purposely used more than the budgeted expenditure so that the budget will be increases for the following months. After that they spend less than the budgets to shows that they have improve in their performance. For instance, the cost budget is set to be RM 1 million in January. Then the manager spends RM 1. 2 million in their expenditure so that the cost budget will be increase to RM1. million in February. Subsequently, they spend only RM 1. 1 million i n March which is RM 0. 1 million lesser than February to prove that they have better performance. Moreover, manager may use up all the budgets to pretend that there is no slack in the recent budget. Manager may waste his extra cost budget on non-essential expenses. Let say the cost budget is RM 2 million for March, the manager will try to finish his allowance although he only spend RM1. 8 million. This may cause by the fear of the manager that the future budget will be reduces unless the allowance is fully utilise. Rahman,2011) We see the behavior aspect of budgeting as having particular relevance for knowledge-based companies which are increasingly a feature of a developed economy. Other companies may see specific benefits in such a system, given the rapidly changing environment in which they also operate. These changes will not be introduced without conflict and difficulty due to the challenges faced in introducing change. Such challenges may be beyond the achievement of the publi c sector, due to the expression in the budget of politically-motivated policies and objectives eveloped within a complex legal and financial framework. What we can say, however, is that if we are to see the successful application of the beyond budgeting model in both private and public sectors, then this must be underpinned by a considerable organisational, cultural and managerial change. Otherwise it is doomed to failure. (John, 1995). References * Brimson, J&Fraser, R. (1991), The Key Feature of ABB, 42-43 * Cantoria. c. s, (2011)Walking Through an Example of Creating a Zero-Based Budget * Gietzman, MB,(1992) The Development and Design of An Activity Based Budgeting System, Initial Experience. Johnson, HT. (1988)Activity Based Infromation:A blue Print for World Class Management. 23-30 * Johnson, S. (2005), Beyond Budgeting, Retrieved from, http://www. acca. co. uk/students/acca/exams/p5/technical_articles/2950520 * Lynn, M. P, Madison, R. L,(2004) A closer look at rolling budgets: the challenges associated with an effective implementation of rolling budgets are management challenges, and software technology can only become part of the solution when managers are ready to use it to enhance their decision making * Montgomery,P. 2010) Effective rolling forecasts: Make sure your projections are high-level strategy and not just a Rehash of the operating budget. (Budgeting/Forecasting). * Morrow, M & Connolly,T. (1991)The Emergence of Activity Based Costing. 38-43 * Randy Myer(2001), Budget on a Roll, Retrieved from http://www. journalofaccountancy. com/Issues/2001/Dec/BudgetsOnARoll. htm. * Rahman, K. A. (2011) The Pattern of Behaviour in Response to Budgeting. * Sargent,Charles W. PH. D. (1995), Zero-Base Budgeting  and the library,   http://www. ncbi. nlm. nih. gov/pmc/articles/PMC225295/pdf/mlab00085-0055. pdf

The Federal Hpv Vaccination Programme Health And Social Care Essay

There are a figure of ethical issues that arise in proviso of health care services. Although most of the health care enterprises are meant to assist the targeted population overcome wellness jobs they are meeting, proviso of these services has ever been ridden with ethical contentions. One of the recent health care enterprises that have been surrounded by a batch of contention is Federal HPV Vaccination programme. This programme was meant to inoculate all misss between the age of 12 and 26 to protect them against HPV that causes cervical malignant neoplastic disease and venereal warts. However, there are different ethical issues that arose in the class of execution of the school-based programme. It was argued that the plan was implemented as a consequence of increased advertizement by the pharmaceutical companies about the effectivity of the Gardasil vaccinum while there was no scientific study that backed the effectivity of the vaccinum. This was considered as indefensible response to moral issues because there was no adequate grounds back uping the usage of the vaccinums. However, the authorities still insists that the plan was meant to make good for the targeted population sing that cervical malignant neoplastic disease and venereal warts are going major public wellness concern. This is merely one of the health care initiatives that have led to great public tumult when scrutinized in different ethical positions. Healthcare services are meant to assist the population overcome major wellness jobs they face but at the same clip they attract a batch of contention due to struggle of involvement. In order to understand this job good, this survey will reexamine the Federal HPV Vaccine Programme and the ethical issues that arose as a consequence. The survey will first expression at the Federal HPV Vaccination Programme including its aims. The survey will so reexamine the ethical issues that arose from this programme and analyse one of the jobs through ethical positions. The Federal HPV Vaccination Programme Human Papillomavirus ( HPV ) is a group of viruses that are known to do skin warts, venereal warts and different types of malignant neoplastic diseases. There are different HPV that affects different parts of the organic structure with some of them infecting the venereal countries. Warts that are found on other parts of the organic structure like the custodies are known to be caused by different types of HPV. HPV types 6, 11, and 18 are known to do malignant neoplastic diseases with types 16 and 18 linked to cervical malignant neoplastic diseases while types 6 and 11 are linked to venereal warts ( Winer, Hughes & A ; Feng 2006: 2648 ) . Due to the increased prevalence of venereal warts and cervical caners, there have been concerted attempts aimed at developing a vaccinum to cover with the job. HPV is spread by direct contact or during sexual activities. It is estimated that approximately four out of five people are likely to hold venereal HPV infection at some times in their lives ( Parkin 2006: 3035 ; Australian Government, 2010 ) . This is the chief ground why HPV vaccinums have become of import for misss who are sexually activity. The major job with HPV is that it does non do symptoms that people can see ( Winer, Hughes & A ; Feng 2006: 2649 ) . This means that people can hold HPV and non cognize because there are no apparent symptoms. In 2007, the Australian Federal authorities began one of the most ambitious immunisation programmes. It began funding voluntary plan that made Gardasil available and adult females between the age of 12 and 26 old ages for free within a period of two old ages ( Christian 2006: 12 ) . The authorities besides ensured that there was an on-going inoculation programme that targeted 12 and 13 old ages old in schools. Australian authorities, in concurrence with PBS ( Pharmaceutical Benefits Scheme ) approved the vaccinum for public usage and instantly began a national broad programme for school misss aged 7 to 12 old ages ( Poljak & A ; Gemman 2006: 9 ) . The plan has been run by the local councils but the support is provided by the authorities. However, it is argued that the subsidisation of the vaccinums by the authorities could hold been implemented under political influence. Even the curate stood up and said that the programme would be approved long before it received authorities blessing. In add-on, the authorities outlined that adult females between the age of 18 and 26 old ages could besides have the first dosage for free but they had to petitions it from their general practicians ( Christian 2006: 12 ) . However the programme was scaled down to 12 and 13 old ages misss merely after 2009. In add-on, the authorities had approved Gardasil for inoculation of male childs aged between 9 and 15 o ld ages although the authorities did non supply support for boys inoculation ( Christian 2006: 12 ) . The authorities besides directed that in the procedure of disposal of the vaccinums, general practicians should remind their clients that they should besides go on with the regular pablum vilification ( Parkin 2006: 3042 ) . It besides directed them to promote adult females who received the vaccinums to register with National HPV Register for supervising intent. The National HPV inoculation programme registry is used to roll up informations in order to measure the impact of the HPV inoculation on the rates of cervical caners. It is besides used to measure the success of the programme in coverage and if the contact vaccinum receivers required a supporter dosage ( Poljak & A ; Gemman 2006: 9 ) . The registry is of import in helping the authorities recognize its mark of cut downing the prevalence of venereal warts and cervical malignant neoplastic disease among adult females. Ethical issues Like other healthcare enterprises, there are different ethical issues that arise. In the class of history, there have been medical enterprises, particularly those that involve the mass, which have resulted to ethical jobs ( Zimmerman 2006: 4815 ) . Ethical contentions are likely to ensue every clip there is aggregate disposal of vaccinums to forestall spread of diseases. One of the chief issues that arise in such plans is safety. Although there are laboratory and research studies that confirms that safety of these programmes, issues of safety comes in the class of execution of the programme or long after the programme has been winded up. The chief issue of safety when it comes to disposal of vaccinums is that receivers feel that their safety can non be guaranteed because they have non been involved in preparation of the vaccinums or when there is no adequate informations that supports the safety of the vaccinums ( Shciller & A ; Lowy 2006: 1168 ) . Another job that arises in the clas s of public wellness programmes is the issue of informed consent ( Zimmerman 2006: 4815 ) . Although it may be outlined right from the start that the programme will be voluntary, there are propagandas that arise in the class of the programme that convinces the receivers that they have been forced to have the vaccinums. The other job that may originate after such a programme is the usage of options. In most instances, new vaccinums are introduced in such public programmes but the continued usage of the earlier health care services may be affected. For illustration it has been shown that in instances where HPV vaccinum has been administered, most receivers are likely to predate regular showing for malignant neoplastic disease ( WHO ) . The populace can non merely understand why they have been introduced to a new vaccinum and yet they are requited to go on utilizing the old methods of testing like Pap smear. There were a figure of ethical issues that arose in the class of execution of The Federal HPV Vaccination Programme. The first ethical issue was based on the fact that there was non scientific cogent evidence that backed Gardasil as an effectual vaccinum in bar of HPV ( Zimmerman 2006: 4817 ) . Two of the recent articles that were published by New England Journal of Medicine suggested that the vaccinums against cervical malignant neoplastic diseases was used without adequate grounds to shows that they were effectual in undertaking the disease ( Zimmerman 2006: 4815 ) . The writers of these two articles noted that despite the fact that there has been assuring consequences from clinical tests, there was still no sufficient evident to endorse the effectivity of the vaccinums against cervical malignant neoplastic diseases. There as so many indispensable inquiries that still need to be answered and the populace should be cautious when seeking these vaccinums. A recent study that was released in New York Times showed that these vaccinums have been studied for a short period of clip and long term effects are yet to be established The vaccinums was licensed in 2006 after clinical tests that lasted for more than six old ages but this did non bring forth any grounds to demo their effectivity ( Roden, Ling & A ; Wu 2004: 979 ) . Most of import inquiries that have non been answered sing the vaccinums is the continuance the unsusceptibility will last and whether extinguishing strains of the cancers-causing virus is likely to diminish the degree of bodyaa‚ ¬a„?s natural unsusceptibility to other strains of the same virus. Cervical malignant neoplastic disease normally develops after the persons have been infected with chronic HPV and there is no cogent evidence to demo that vaccinums will protect the organic structure against two strains of the virus that are known to do cervical malignant neoplastic disease ( Shciller & A ; Lowy 200 6: 1169 ) . One of major ethical issues that arise from the programme is that the authorities could be enforcing uneffective vaccinums on the population ( Colgrove 2006: 1390 ) . In most instances, medical programmes like The Federal HPV Vaccination Programme are perceived from a useful position in the sense that they are supposed to assist the population. The result of the programmes like The Federal HPV Vaccination Programme should assist the targeted population wellness wise ( Verweij & A ; Dawson 2004: 3126 ) . With this perceptual experience in head, the chief purpose of execution of The Federal HPV Vaccination Programme was to help Australian misss fight cervical malignant neoplastic diseases and venereal warts. However, the involvement of the authorities could non hold been good informed in visible radiation of the studies published in New England Journal of Medicine that shows deficiency of scientific cogent evidence to endorse disposal of this vaccinum in contending cervical malignant n eoplastic disease. Was Australian authorities justified in the usage of Gardasil to contend prevalence of cervical malignant neoplastic diseases in misss sing that there was no adequate scientific backup to turn out it? This is a inquiry that needs to be interrogated through different ethical positions but the involvement of the parties involved must be taken into consideration. Earlier, it was mentioned that the authorities determination to transport out The Federal HPV Vaccination Programme was influenced by political powers ( Haas 2009: 289 ) . There is all ground to interrogate the determination by the authorities to perpetrate more than $ 160 million of the taxpayeraa‚ ¬a„?s money on a vaccinum that has non been proved effectual. First, this meant that the authorities had to relocate financess from other health care plans into order to fund this programme, which led to less financess available for other critical health care disbursement like on of import herceptin and other bosom medicines. This can be considered as a misplaced precedence that was implemented on land of political influence. Closely tied to this issue is concern about increased advertizement of the vaccinum by pharmaceutical companies ( Yudin 2010: 56 ) ) . For many old ages, the pharmaceutical industry has been criticized for advertisement merchandises that have non yet be en proved. Hungry for immense net incomes, the pharmaceutical industry has been publicizing their merchandises long before they have undergone proper vetting process to declare them suit for human ingestion. This is an ethical issue when one considers the effects that such merchandises may hold on the population. In a nut shell, the pharmaceutical industry can be applauded for puting in R & A ; D to guarantee development of drugs and vaccinums to control lifting instance of malignant neoplastic diseases. However, their influence on the political category may take the authorities to take determination like the one taken by Australian authorities for the involvement of these companies. They understood really good that with the authorities backup of such a programme, there would be increased ingestion of their merchandises interpreting to immense net incomes they are seeking in the market ( Schwartz 2010: 1843 ) . Therefore, there is a likeliness that the determination taken by Austral ia authorities could hold been influenced by the pharmaceutical companies that had carried out extended advertizement on the effectual of Gardasil in contending cervical malignant neoplastic disease. Is it possible that the authorities has fallen quarries to strategies by pharmaceutical companies to publicize their merchandises? Did these companies influence the political category to approve the plan in order to function their ego involvement? These are many others are inquiries that need to be closely interrogated when sing the influence of the political category and the pharmaceutical companies on authorities determination to turn over out The Federal HPV Vaccination Programme. However, it is apparent that the increased advertizement on the effectivity of the vaccinums could hold had major influence on the authorities while implementing this plan. In add-on, there were moral issues that could be explored in visible radiation of The Federal HPV Vaccination Programme. The desire by the authorities to implement the programme could hold been elicited by the demand to protect 1000000s of immature misss in the state who a hazard of cervical malignant neoplastic diseases. In another position, it can be argued that through execution of this programme, the authorities assumed that Australian immature misss are prosecuting in sex, the most common method for transmittal of HPV. Australian parents were bullied into a medical response to one of the most controversial moral issue of sex. This was perceived as another programme by the authorities in its safe sex battle. It is acceptable that immature male childs and misss are prosecuting in sexual at a clip that is non appropriate but this does non vouch the authorities to pump false information about protecting immature people from such disease ( Verweij & A ; Dawson 2004: 3124 ) . The issu e of HPV is closely tied to sexual activities among the immature people and the best manner that can be used to cover with it is through plans that discourage immature misss from prosecuting in sex ( Roden, Ling & A ; Wu 2004: 980 ) . Alternatively of the authorities directing such financess to programmes that will assist kids cover with sexual issues during stripling, the authorities goes on to administrate vaccinums that tells immature people that they have license to prosecute in sex because they are aa‚ ¬Aâ€Å"protectedaa‚ ¬A? . Oppositions of The Federal HPV Vaccination Programme argue that due to increased public trust on the Gardasil vaccinums, there is likeliness of lessening in usage of Pap smear that has been proved effectual in diagnosing of cervical malignant neoplastic disease ( Zimmerman 2006: 4814 ) . Although the Australian authorities has directed medical professions administrating the vaccinums to promote adult females to travel for regular Pap vilification, there is high likeliness that most adult females are likely to abstain from seeking pablum vilification and rely on the vaccinums which has non been proved effectual in combating cervical malignant neoplastic disease. Another ethical issue that arose in the class of the plan is informed consent. This is one of the most of import ethical demands in biomedical programmes where the participants have to be informed of the purpose of the programme and objectives it will accomplish. The Federal HPV Vaccination Programme dealt with immature kids who were non in place to do their ain determination sing their engagement in the programme ( Verweij & A ; Dawson 2004: 3123 ) . Harmonizing to ethical theories, when covering with kids below the age of 18 old ages, parental consent must be sought before the kid participates in such a programme. By implementing The Federal HPV Vaccination Programme without affecting parents in blessing of the programme, the authorities violated one of the basic ethical demands. In this programme, parents should hold been involved in doing the determination whether to implement the programme or non. Although the ultimate purpose of the authorities was to protect immature misss fro m cervical malignant neoplastic disease, this does non vouch the demand to compromise the rules of informed consent and pick. Informed consent and The Federal HPV Vaccination Programme One of the ethical issues that arose from this plan was the issue of informed consent and pick. The issue of informed consent requires that participants in any medical procedure must be informed of their purpose of the procedure and they should give their consent to take part in the programme. This means engagement must non be compulsory. This rule requires that when covering with kids below the age of 18, who can non do their ain determination to take part in such plans, parental consent must be sought ( Verweij & A ; Dawson 2004: 3126 ) . This means that their parents must be informed of the engagement of their kids and give their consent. The Federal HPV Vaccination Programme was intended to cover with the job of cervical malignant neoplastic disease in misss. From a useful position, the programme should hold produced good consequence for those take parting in the programme. It was supposed to cut down the prevalence of cervical malignant neoplastic diseases among adult female in Australian and this was asses through HPV Register. All medical enterprises like The Federal HPV Vaccination Programme are assessed through useful position because they are expected to hold positive consequences to the populace ( Smart & A ; Williams 1973: 62 ) . A programme that produces negative consequences would be considered a liability to the authorities and the participants as good. The taking ethical rule for public wellness programmes is that they should bring forth good results for the mark population. However, this was non the instance in this programme because there were negative effects that were registered after The Federal HPV Vaccination Programme was implemented. In add-on, the useful attack to this issue does non vouch the authorities any right to go against basic rule of informed consent and pick ( Smart & A ; Williams 1973: 62 ) . There were different ways in which the authorities violated this rule. First, it was earlier highlighted that despite public concern, the Prime Minister had already indicated that the plan would be approved. This meant that the authorities was non ready to see any input from the mark population. The execution of the programme should hold involved the mark population and acquire their blessing whether to take part in the plan or non. Although the authorities had earlier indicated that engagement in the programme was voluntary, school based programmes did non adhere to this rule ( Verweij & A ; Dawson 2004: 3125 ) . Out of their artlessness, and possibly without any cognition of the possible consequence of the programme on their wellness, school traveling misss flocked to have the vaccinums. In such instance the authorities should hold called all parents foremost and informed them of the at hand programme so that parents could do their determination whether their kids should have the inoculation or non. If the authorities failed to affect concerned stakeholders, who in this instance were parents, during the blessing of the programme, parental blessing should hold been sought by the clip the programme was being implemented at school degree. In order to cover with this ethical job, the authorities should recognize the importance of the rule of informed consent and the pick of participants ( Verweij & A ; Dawson 2004: 3125 ) . They should esteem the liberty of Australian school misss and seek the consent of their parents before kids receive vaccinums. Although some may reason that the harm has already been done because a figure of kids have already received the vaccinum, this should non be a ground to disregard pertinence of this rule. Sing the negative effects that have already been registered with the vaccinums, the authorities should every bit good halt the vaccinum until its effectives has been proven. This will guarantee that the rights of Australian misss to do informed pick will be respected. Decision Most medical programmes that target the mass are sometimes loaded with many ethical issues. From the basic point of blessing of such plans, pick of participants, enlisting and disposal, these programmes attract different contentions. The Federal HPV Vaccination Programme is one of such programmes that have attracted ethical contentions. From a useful position, this plan was meant to cut down the prevalence of cervical malignant neoplastic diseases among adult females in Australian. However the pick of Gardasil vaccinums remains controversial because there is no scientific information that backs the effectivity of the vaccinums. In add-on, the blessing of the plan was besides controversial because parent involved was non sought at national or school degree, which means the rule of informed consent was violated. Sing the negative consequence of the vaccinums on those who have received it, the authorities should instantly hold the plan until the effectivity of the vaccinums has been app roved. In add-on, authorities should besides affect the populace in the hereafter when doing of import public wellness determinations because they are stakeholders.

Corrections Management. Mermon Correctional Facility Research Paper

Corrections Management. Mermon Correctional Facility - Research Paper Example Personal reflections on the Agency and its Administration Generally, Mermon Correctional Facility is a relatively well managed institution. This is because an incident of a correctional officer getting killed has occurred only once since its establishment. This means that the institution has managed to secure its employees over a long period of time before the occurrence of the unfortunate incident in 2010. This is an eye opener for the management of the correctional facility because it points out that correctional officers are not completely secured. Mermon Correctional Facility also faces a number of challenges that relate to modern correctional facilities. However, it is the responsibility of the institution’s administration to ensure effective management by addressing those challenges using the best approaches. Problems and Issues Mermon Correctional Facility is faced with a number of inherent problems that affect its performance in a number of ways. One major effect of the inherent problems and issues is that the organization is unable to deliver its services in effectively hence falling short of one of its major organizational goals. A correctional facility has a major goal of ensuring that there is effective transformation of offenders from social evils into becoming better persons. Below is a discussion of some of the issues and problems related to Mermon Correctional Facility: 1. Budget concerns This is a serious issue facing the correctional facility because there were concerns from employees of the institution regarding budget reductions. Workers at the correctional facility cite budget reductions as the main cause of the murder incident. This is despite the fact the management of the correctional facility made a response to the claims that budget reductions had nothing to do with the incident. Accordi ng to Phillips and McConnell (2005), budget concerns are among the major component concerns of a changing environment in the management of correctional facilities. Government and private institutions have reduced their spending on correctional facilities in response to tighter economic conditions. The authors also note that correctional facilities are having difficulties hiring adequate staff to manage such facilities. Budget concern is also an issue because it is evident that there was only one member of staff when the murder incident occurred. Marsha Wills was alone at the chapel at the time of the murder incident. She was attacked after the church service and it is believed that the murderer was hiding in the chapel. Mermon Correctional Facility did not have adequate staff to escort convicts during the church session and one of the prisoners was able to hide and make an attack without the knowledge of other employees (Jones & James, 2005). Low staff levels put both the staff and other prisoners at risk. This is because it is very difficult to monitor prisoners as well as manage them in situations of emergency. The aftermath of the murder incident led to other members of staff raising concerns about the low levels of staff. Mermon Correctional Facility is among correctional institutions that are affected by budget cuts hence it is unable to hire adequate staff to manage its numerous tasks. It is for the same reason that the correctional

The proposal of Cheerios Assignment Example | Topics and Well Written Essays - 500 words

The proposal of Cheerios - Assignment Example Cheerios, originally named Cheerioats, is made totally from natural whole grain oats. The marquee cereal brand need not be cooked as it is ready-to-eat. This breakfast cereal has proven medicinal values as it helps to lower cholesterol in the human body. The company claims that three servings of Cheerios taken with low fat diet every day reduce the chances of contracting heart diseases. The crunchy, sumptuous and nourishing snack is thus an ideal first meal of the day for the entire family (Cheerios.com, 2014). Cheerios is manufactured and marketed in more than a dozen luscious varieties. Some of these are Honey Nut Cheerios, Cheerios Protein Cinnamon, Almond, Cheerios Protein Oats & Honey, Banana Cheerios, Chocolate Cheerios, Fruity Cheerios and Yogurt Burst Cheerios. Cheerios believes in the philosophy of fostering the physical and mental faculties of the child. The company has successfully run its ‘Spoonful of Stories’ campaign for a more than decade. In 2013, the brand announced that it will bring the older kids within the ambit of this campaign and provide 8 million books inside Cheerios packets free of cost (Cheerios.com, 2014). Cheerios harnesses the power of social media to spread the message that a healthy breakfast makes a positive, meaningful difference in a child’s life. General Mills has set up online communities that not only help the company enable it achieve its mission but also assist in spreading a positive word-of-mouth for its brands (Generalmills.com, 2014). The company uses online social networks like Facebook, Twitter, YouTube to engage in useful conversations with the customers. The purpose of this communication is to get insights into the consumers mind and uncover new ways in which the community as a whole can benefit. Cheerios also indulges in strategic corporate social responsibility. The brand, in association with the YMCA, organized the Healthy Kids day in April this year (Cheerios.com, 2014). The

Water Supply Jacksonville Florida Essay Example | Topics and Well Written Essays - 250 words

Water Supply Jacksonville Florida - Essay Example In the year 2014, the Florida department of environmental protection performed a detailed assessment of the water system for potential contaminants (Jacksonville Electric Authority, 2014). The potential contaminants are the major grid with 49 sources and the Ponce de Leon grid with three sources. However, further studies on the potential pollutants portrayed a lower to moderate rate of susceptibility. The water in the region is hard water. The question is what is hard water? Affirmatively water can be described as hard water if it contains high levels of minerals that are dissolved. The minerals are such as magnesium and calcium. However, hard water does not pose a health risk, on the contrary, calcium and magnesium is important to human health (Jacksonville Electric Authority, 2014). Most individuals use the magnesium as antacids or common supplements. Hard water may leave spots on utensils; however, this can be removed by use of vinegar. Conclusively the water supply in Florida is safe for the health of the residents. Considerably the hard water in the region does not pose any health implications. Nevertheless, the spots it leaves on utensils can be removed by use of vinegar.

The Parable of the Watchful Servants Term Paper

The Parable of the Watchful Servants - Term Paper Example (c) Do you detect any particular structural pattern? (example: parallelism with other books of the Bible or is you passage a stand-alone passage etc.) (d) Has your passage come through the editorial process? What changes have been made? Explain why possible changes have been made?   (e) What are the theologically important words in your passage? Do these words evoke any other parts of the Bible? Are these words used in a new way by the author of this passage? What does the word or words mean?   (f) What does this passage say about a relationship with God?   What questions might this passage have addressed in the community for which it was originally addressed?   Context The passage which proceeded from the Parable of the Watchful Servant pertains to the Parable of Rich Fool. This verse in Luke 12: 13-21 forewarned believers not to covetous to mundane and material abundance because God is not interested about how much wealth was reaped from this world but how much spiritual we alth one was able to nurture. Didn’t it was clearly pronounced when he asked â€Å"what profit a man if he earns the whole world but loses his own soul (Mark 8:36)?† The parable of the Watchful Servant was also connected to the succeeding paragraph which explicated the need for those enriched to care for those who are deprived as enshrined in Luke 12: 22-29. The verses ask the rich to not just enjoy once abundance in life by eating, party-making and merrying but rather by engaging in a more meaningful act of sharing such abundance to those who are hungry, deprived and impoverished. Such mundane richness is neither the measure of man’s person nor of Christian’s value. Man should transcend the richness reaped from for mundane causes and must rather prepare his soul with values to please God because He will not be fascinated to recognize the possessions generated from the earth which always corrupt the person and his spirit. The biblical text called on the f ollowers to treasure those that could permeate him to enjoy the Kingdom in heaven. Thus, the passage encourages those who earned more to give alms and to share because life is more than the flesh and more than just meat. It’s therefore primordial to â€Å"seek first the Kingdom of God because all things shall be added unto you (Luke 12:31).† The Parable of the Watchful Servant is followed by the verses on The Unfaithful Servant (Luke 12:41-48) and I quote: Then Peter said unto him, Lord, speakest thou this parable unto us, or even to all?  And the Lord said,  who then is that faithful and wise steward, whom his lord shall make ruler over his household, to give them their portion of meat in due season?  43  Blessed is that servant, whom his lord when he cometh shall find so doing.  Of a truth I say unto you, that he will make him ruler over all that he hath.  But and if that servant say in his heart, My lord delayeth his coming; and shall begin to beat the m enservants and maidens, and to eat and drink, and to be drunken;  The lord of that servant will come in a day when he looketh not for him, and at an hour when he is not aware, and will cut  him in sunder, and will appoint him his portion with the unbelievers.  And that servant, which knew his lord's will, and prepared not himself, neither did according to his will, shall be beaten with many stripes.  But he that knew not, and did commit things worthy of stripes, shall be beaten with few stripes. For unto whomsoever much is given, of him shall be much required: and to whom men have committed much, of him they will ask the more (Luke 12:41-48).  Ã‚  

Williamson Ether Synthesis- Preparation of Methyl p-ethylphenyl ether Lab Report

Williamson Ether Synthesis- Preparation of Methyl p-ethylphenyl ether - Lab Report Example At the end of the experiment, methyl p-ethyl phenyl ether was produced and quantitatively identified as the desired product. In conclusion, it was ascertained that all the procedures and reaction conditions employed throughput the reaction were instrumental in influencing the quality and quantity of the resultant ether. Technically, Williamson Synthesis process is one of the effective methods used in the synthesis of ethers. Unlike other ether-synthesis processes, Williamson Synthesis is particularly suited for production of ethers with both symmetrical and unsymmetrical molecular structures (Mayo et al, 322). In chemistry, ethers are important compounds applied in a variety of ways including but not limited to dissolution of organic compounds, and formation of organic linkages. This experiment involves a practical examination of ether synthesis. Williamson ether synthesis is the most widely and simplest method in ether synthesis. Despite its simplicity and wide applicability, this method fails to yield desirable products whenever a parent alcohol is treated with a secondary or tertiary halide. Technically, the limited applicability of Williamson ether synthesis is attributed to the method’s mechanism, which is a typical SN2 reaction. This experiment is an explicit demonstration of SN2 reaction mechanism, especially those requiring phase-transfer catalysts. Use of phase-transfer catalysis is meant to increase favorability of SN2 reaction over E2 elimination, which is a characteristic problem whenever secondary and tertiary alkyl halides are used in ether production (Mayo et al, 322). In this experiment, the desired product is methyl p-ethyl phenyl ether. In the experiment, the reagents were ethyl phenol as a parent alcohol, and methyl iodide as the primary halide. Despite being a primary halide, a phase-transfer catalyst was instrumental in increasing the yield of the desired ether. Chemical

Excercise programs, Personal training, nutrition, Assignment

Excercise programs, Personal training, nutrition, - Assignment Example 20). As the client has expressed that they are a beginning when it comes to weight training, a series of stages have been designed as a means of aiding the client. The first stage of the exercise routine involves machine weights. Specifically, it is recommended that the client implement fully body circuit training three times per week. In terms of repetitions, implementing 10-12 repetitions on each machine at a steady rate is recognized to increase muscle capacity. The following stage of this program will then involve upper body and lower body splits of free weights. Compound exercises with 10-12 repetitions each can then be implemented 4 times per week. The compound exercise split will implement pull-ups, deadlifts, and chest presses will be implemented to target back, arm, chest and core muscles. There will be a one-day rest period and then lower body exercises will be implemented. The lower body exercises will primarily focus on squats with the barbell, but will also involve squat ting without the barbell. Both the lower body and upper body exercises will be implemented 3X each with 10-12 repetitions. The ultimate recognition is that these exercises will create the necessary muscle to reduce body fat and tone. There are a number of areas of consideration that I implement when creating an effective programme for a client. One of the prominent areas of concern is upper-body and lower body alterations. The upper body and lower body split is effective in that it is largely simplistic and does not require clients to consider complex muscle groups in implementation. Another prominent consideration involves resistance training, strength training, hypertrophy, and endurance training. The main consideration in these regards is in terms of repetitions. The implementation of lower repetitions at higher weights results generally in an increase in muscle bulk. This is contrasted with higher

The Requirements For Army Officers Essay Example | Topics and Well Written Essays - 500 words

The Requirements For Army Officers - Essay Example I endeavor to dedicate myself to a life of public service and leadership in the army. To be a successful army officer, one must have strong communication and interpersonal skills. My work and school roles, responsibilities, and activities have honed my communication and interpersonal skills. In high school and college, I served leadership positions, where I served the interests of my groups and community. My work experiences also gave me the opportunity to be a good communicator. As an Internet Sales Associate, I learned how to convince people about our products. Being an army officer also requires â€Å"selling,† specifically selling the importance and urgency of different unit assignments. I also worked as a Certified Nursing Aide. In this job, I was able to interact with different kinds of personalities, people with different and complex needs and interests. I learned how to understand and deal with them so that we can attain our health care objectives. I also worked as an Operating Room Specialist and Production Technician, where verbal and written communic ation skills were critical. As an enlisted soldier, I learned the importance of listening to and following my superiors and learning from formal and informal sources of knowledge and information in the army. These experiences have enhanced my communication and interpersonal skills that are needed to act as an army officer. An army officer entails leadership and responsibility. I want to take an active role in leading an army unit so that we can attain any goal or objective assigned to us. In high school, I developed my leadership skills by becoming the Boys Prefect at the Presbyterian Boys Senior High School in Legon, Ghana. During this time, I enjoyed the ability to exercise discipline on myself and other people. My need for challenging leadership experiences thrived until college.

Accounting Issues Assignment Example | Topics and Well Written Essays - 750 words

Accounting Issues - Assignment Example Retained earnings are the accumulated wealth of earnings not paid as dividends that the company obtained over the years. The cash balance of the company as of December 31, 2012 was $2,800,000. In terms of retained earnings the company had a balance of $31,400,000. Based on the asset distribution of the company it seems as if the company invested its retained earnings in the past in property, plant, and equipment. Common stocks, preferred stocks, and bonds payable are three distinct financial instruments that corporations can utilize to raise money. A common stock can be defined as an equity security that has last claim on residual assets and earnings of a corporation (Tewales, Bradley, Tewales). Common stocks are traded in the open market and its price fluctuates daily. A common stock gives its owner a participation stake in the ownership of a company. Common stocks have voting rights. At the end of the fiscal year shareholders are eligible to receive dividends if the board of direct ors declares them. A preferred stock is a special type of stock that has a claim on a corporation’s earnings, dividends, and assets ahead of common stock, but behind debt (Tewales, et al.). Corporations are mandated to pay dividends to preferred stock holders. If dividends are not paid they become cumulative and must be paid in the next accounting period. Preferred stocks do not have voting rights. A bond is a long term note that corporations sell to the general public. A bond has the obligation of paying its holders an interest payment to be paid on a quarterly, semiannual, or annual basis. The interest rate paid on a bond is known as the coupon rate. The principal of the bond must be repaid to the investor in full upon maturity date. The use of preferred stock is ideal for the company for a variety of reasons. First of all the use of preferred stocks does not dilute the power of the current owners of the company because preferred stocks do not have voting rights. Most impor tantly preferred stocks are accounted for as an equity option. The debt on the balance sheet of the company will not increase by selling preferred stocks. The use of preferred stocks does have a cost as the company will be obligated to pay dividends to the owners of preferred stocks. The capital structure of the company did not include any preferred stocks at the end of 2012. The company has a covenant on its previous debt that requires the firm to maintain a debt ratio below 60%. The total liabilities of the company in 2012 were $48.6 million, while its total assets amounted to $90 million. The debt ratio of the company is 0.54. This ratio is an indicator of the solvency of the company. If the company were to acquire an additional $10 million in debt its debt ratio would increase to 0.65 violating the existing covenant on its debt. The firm would also not quality for a $20 million loan since doing so would increase its debt ratio to 0.76. The use of capital leases is a viable finan cing arrangement that the company can use to acquire equipment and machinery. The debt analysis performed on the company showed that additional debt is a limiting option due to a covenant on its existing debt that requires the firm to maintain a debt ratio below 60%. The use of a capital lease is a very attractive option because the debt on the lease is not reflected on the balance sheet liabilities section, but the asset being leased is considered an asset in the accounting books of the company. The use of a capital lease affects both the income statement and balance sheet of the firm. The balance sheet is affected because the leased equipment must be included in the asset section of the balance sheet under the

Hazing Essay for Law Essay Example for Free

Hazing Essay for Law Essay Hazing is a term that many people are familiar with, but not everyone thinks of it in the same way. Hazing can be defined as any act that endangers the mental or physical health or safety of a student, or that destroys or removes public or private property, for the purpose of initiation, admission into, affiliation with, or as a condition for the continued membership in a group or organization. The issue of hazing can be controversial at times because some feel that it is nothing more than a way for a group to bond, but others fight against all kinds of hazing because of their belief that hazing is a serious threat to those who have to endure it, especially the youths of the world. Hazing is most often associated with fraternities, but it is an issue in many different organizations, including sororities, the military, athletic teams, student clubs (such as marching bands), and in high schools. Those who have never been involved in hazing may wonder why the victim would agree to the often humiliating or dangerous initiation rituals. The most common answer to this question is that they participated because they believed it would give them a sense of belonging, despite the fact that these so-called traditions may harm the participants. Most anti-hazing laws make it clear that it does not matter if a person consented to be subject to hazing because of the pressure they are under at the time and their lack of knowledge about what the process would involve. One of the most common forms of hazing, especially within fraternities and sororities, is the forced consumption of alcohol, often in lethal doses. One such incident involved Chuck Stevens, who was taken from his dorm in New York State, locked in the trunk of a car, and forced to drink a mix of bourbon, wine, and beer. Chuck died as a result of being hazed, and his mother, Eileen, has since founded the Committee to Halt Useless College Killings, or C.H.U.C.K., in memory of her young son. This organization promotes awareness and educational programs, tries to find alternatives to hazing, and works towards stricter anti-hazing laws. Peoples perception of exactly what hazing is often varies form person to person, which makes it hard to separate acceptable traditions from unacceptable traditions. Even people who have witnessed hazing rituals or been a part of a hazing ritual are reluctant to label it hazing because of the stigma associated with the word. Victims of hazing will often not report the incident because they are unsure if what they suffered is classified as hazing and they are afraid of no longer being a part of the group they had worked so hard to join. A study conducted at Alfred University explored the various reasons why anyone would want to participate in a hazing ritual. Nearly half of those surveyed answered because they thought it was fun and exciting, but the majority of those students were only subjected to humiliating hazing. Other reasons include they were scared to refuse, they felt it brought the group closer, they wanted to get out some aggression through fighting, and they were immature when they agreed to the hazing. The study also discovered that many students did not know whether hazing was illegal in their state, and that if there was a law, it made no significant difference in the level of hazing behaviour. Hazing is something that occurs much more than we are aware because most incidents go unreported. Those students who did report hazing also reported both positive and negative consequences of the actions committed by them and by others. A common occurrence among those hazed was depression, which often included anger, and if the hazing was physical, the victim may suffer internal bruising and pain. Not all hazing has such serious penalties, though, and one positive aspect that was reported by students is that they felt they had gained a valuable life experience and had been able to mature. The outcome of hazing is different for each person who goes through it and it all depends on what type of hazing they endure and for what purpose they felt it was worth agreeing to. Aside from hazing taking place in the fraternities and sororities of universities, it is also a dominant problem in schools athletic teams. Nearly 80 percent of student athletes reported being subjected to one or  more hazing behaviours, ranging from shaving their heads to being tied up and paddled, as part of their team initiations. Amazingly, only twelve percent of these students were willing to call what they had gone through hazing. Many rookies, especially males, are also forced to humiliate themselves and others through some kind of sexual abuse or nudity, such as walking around naked while holding another mans genitals. Members of the University of Vermonts hockey team in reportedly carried out this shocking behaviour in October of 1999. Former UVM hockey player Corey LaTulippe, who filed a civil lawsuit against the university, has told the media that he was repeatedly subjected to hazing by other members of the team, and that school officials did nothing to end it. Womens athletic teams also face hazing rituals, but they are more likely to embarrass their rookies, where men are more likely to be involved in extreme hazing, such as beatings or theft. In addition to hazing being a major component of universities and high schools, it is also an issue that the military must deal with constantly. Military hazing can be used to describe anything from a good-natured punch on the stripes when someone is promoted, to Navy chiefs who make a new chief wear a dress, to boot camp activities when superiors or peers try to transform a balky recruit into a trustworthy team player. Hazing is an issue for branches of the military all over the world, including Canada, the United States, and Russia. Hazing in the Russian armed forces can be particularly harsh, considering that many first-year soldiers die at the hands of their grandfathers, or their superiors. In the United States, the public knew nothing about military hazing until 1956, even though it began over a century ago. Just a few short years ago, there was a scandal that rocked the military when videotapes of Marines participating in blood pinnings were released to the media. This initiation ritual involved Marines ramming gold-wing pins into the chests of fellow Marines, which sickened all those who viewed the graphic footage. Despite the many dangers that are associated with hazing, experts warn against eliminating it altogether. Sociologist Jamie Bryshun has said that the traditions often run too deep, and nothing any coach or university administrator says or does can end them. There is fear that if all hazing  is completely forbidden, then the organizations will just take it underground, where it may become even more dangerous. Different groups have tried to come up with alternatives to hazing, such as planning special events as a way for the members to bond with each other. The penalties for participating in hazing are on the rise. Hazing is now illegal in 41 states in the U.S.A., and many are working towards increasing that number. Under Texas law, hazing has been committed if a person engages in hazing, solicits, encourages, directs, aids, or attempts to aid another in engaging in hazing, intentionally, knowingly, or recklessly permits hazing to occur, or has firsthand knowledge that a hazing incident is being planned or has occurred and does not report their knowledge to the proper authorities. Even if the person has agreed to be a part of the hazing activity, it is still classified as hazing and charges could still be filed. Some criminal penalties include: a fine up to $1000 and/or up to 180 days in jail for failing to report hazing, a fine of $1000-$5000 and/or 180 days to one year in jail for being involved in hazing that resulted in serious bodily injury, and a fine of $5000-$10000 and/or one to two years in jail for participating in hazing that resulted in the death of someone. Despite the increase in awareness about the subject of hazing and the tougher anti-hazing laws, it is still a major problem for organizations all over the world. Even though many have died and countless others have been hospitalized, the trend of dangerous hazing has continued to grow, and it will not end until groups such as universities and the military receive a major wake up call. It is up to the leaders of the organizations to ensure that all its members are made to feel safe and no longer pressured to participate in activities that they know could endanger their lives.

Quicksilver Essay Example for Free

Quicksilver Essay Quiksilver purchased Skis Rossignol for $560 million in 2005, but is selling Rossignol in 2008 for $147 million. [1] It owned golf-equipment maker Cleveland Golf up until October 31, 2007, when it sold the company to a Japanese sporting goods company. [2] The companys DC and Hawk brands are also synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach- and water-oriented swimwear brands include Raisins, Radio Fiji and Leilani. The Rossignol, Dynastar, Lange, and LOOK brands are leaders in the alpine ski market, and the Company makes snowboarding equipment under its Rossignol, Dynastar, DC, Roxy, Lib Technologies, Gnu and Bent Metal labels. Quiksilver also carries a line of high-end apparel and accessories under its QuiksilverEdition brand. In the fall of 2008, Quiksilver will introduce its newest brand, Quiksilver Womens, aimed at the 18 to 24-year-old demographic. Quiksilver also supports the worldwide boardriding community through its self-titled foundation launched in 2005. The Quiksilver Foundation works to provide environmental, educational, health and youth-related projects to worthy boardriding communities around the globe. Quiksilver Travel also offers snow and surf travel packages to exotic locations such as Samoa, Peru and Costa Rica. TypePublic (NYSE: ZQK) FoundedAustralia (1970) HeadquartersHuntington Beach, CA, USA Key peopleRobert B. McKnight, CEO Chairman of the Board ProductsApparel, sporting goods Revenue^ $2. 362 billion USD (2006) Net income^ $107. 12 million USD (2006) Employees7,875 Quiksilver Today Quiksilver operates over 600[3] stand-alone stores in major cities across Australia, New Zealand and the Pacific, Europe, North and South America, Asia, and Africa. There are two types of Quiksilver operated stores which are known as either Boardriders Club or Factory stores. Their products are also sold in many other outlets across the world such as the Fells Point Surf Company or the Ron Jon Surf Shop. In addition, the company operates a number of separate Roxy and Quiksilver Youth stores. As of 2008, Quiksilver sponsors around 500 amateur and professional surfers, snowboarders, skiers, and skateboarders. Among them are surfer Kelly Slater and skateboarder Tony Hawk. They also have the naming rights to the Quiksilver Pro surfing tournament for men and Roxy Pro tournament for women in Gold Coast (Australia) and France. [edit]Quiksilver Womens After four decades marketing primarily towards males, Quiksilver developed a line of clothes for women. The collection includes a full range of knits, wovens, dresses, denim, essentials and organic cotton tees. iteLA As part of the introduction of its new collection for women, Quiksilver selected six women to be Visionaries in Residence at Quiksilver’s siteLA, a communal work and exhibition space in the Silver Lake neighborhood of Los Angeles, California. The residency program is a year-long engagement for women working in and across creative cultural fields. Although they have been selected for their independent projects, t hey share a communal workspace and together create public programs and host special events at siteLA.

An Introduction To The Operations Management Concepts Business Essay

An Introduction To The Operations Management Concepts Business Essay Operations Management has been defined by Krajewski, et al. (2007) as the control and direction of the processes of the organization that changes its input materials to products and/or services for its customers. This report will compare how Mercedes-Benz and Honda manage their operations. The comparison might be useful because it would help identify various ways an organisation could be run in order to meet its goals and objectives. The report will give a brief background of the two organizations mentioned above and then would move on to the comparison of their marketing strategies and competitive priorities. Finally, the importance of frameworks such as capacity planning, inventory management, supply chain design, Total quality management and performance measures, would be discussed and how they could be useful in helping an organisation function efficiently and effectively. A) COMPANY BACKGROUND OF MERCEDEZ BENZ [MERCEDEZ-BENZ U.S. INTERNATIONAL, inc. (MBUSI)] and HONDA [HONDA MANUFACTURING OF ALABAMA, LLC. (HMA)]. MERCEDEZ-BENZ (MBUSI) Mercedes-Benz U.S. International, Inc. (http://www.mbusi.com) was established for the main purpose of manufacturing the M-Class. The M-class was such a huge success that they decided in August 2000 to expand the facility not only to manufacture more units of It, but also to include the R and GL-classes to its product list. The expansion not only doubled the plant size but also the labor force. The plant consists of a body shop, paint shop and two assembly shops. MBUSI receives orders from their 135 worldwide markets. MBUSI uses the Just-in-Time (JIT) philosophy which implies that they do not stockpile large amounts of the inventory they use to assemble their cars. HONDA (HMA) HMA (http://www.hondaalabama.com) manufactures the odyssey, ridgeline and pilot models for the world wide market. HMAs investment in Alabama is over $1.4billion with the construction of a new Honda Engineering facility, on-site consolidation center and steel blanking operation. One of their goals is to be able to produce goods with high quality and sell at a reasonable price. HMA can be referred to as a Zero Landfill Facility due to the fact that they are committed to the principle of Reduce, Reuse and Recycle. They have made efforts in curbing energy use during their production processes, and this has earned them an energy star award from the U.S. Environmental Protection Agency (EPA). A.1) OPERATION/TRANSFORMATION PROCESS OF THE ORGANIZATIONS MERCEDEZ-BENZ (MBUSI) The manufacturing process for both models begins in the Body Shop where the components that comprise the metal body are welded together. From the body shop, they are taken to the ultra-clean Paint Shop where the cars are painted. Finally, they end up in the Assembly where it becomes a new Mercedes-Benz M, R, or GL-Class ready for shipping. From beginning to end, these vehicles are created with style, functionality, and quality in mind (http://www.mbusi.com). HONDA (HMA) Honda Manufacturing of Alabama (HMA) has the largest output for Honda light trucks. It has the capacity to create over 300,000 odyssey minivans, pilot sport utility vehicles, Ridgeline pick-up trucks and V-6 engines annually (http://www.hondaalabama.com). A.2) COMPARISON OF THE ORGANISATIONS BASED ON MARKETING STRATEGIES The Ansoff matrix suggests four ways an organisation could develop strategically. The first one which is market penetration deals with going into the market yet further with existing goods, the next one, product development, has to do with developing new products for the existing market, the third which is market development deals with developing new markets and new segments for existing products while the final one which is diversification takes a radical step to create new products for new markets (Wood, 2007). The table below shows the similarities and difference in marketing strategies between MERCEDEZ-BENZ and HONDA. MERCEDEZ-BENZ HONDA PRODUCT DEVELOPMENT MARKET DEVELOPMENT DIVERSIFICATION The marketing strategies mentioned in the table above will be discussed in the following paragraphs. PRODUCT DEVELOPMENT Product Development deals with producing new products or improving existing ones for the existing market. According to Mercedes-Benz (http://www.mbusi.com) and HONDA (http://www.automobiles.honda.com), below are some of the areas they have tried to improve their products. Mercedes (GL-CLASS/C-CLASS) and HONDA (PILOT/INSIGHT HYBRID) would be used as examples. MERCEDES-BENZ (GL-CLASS) HONDA (PILOT) SAFETY -12-Way protection of an 8-air bag protection -Electronic stability program(ESP) -Brake Assist(BAS) -Rollover sensor -Low tire pressure warning system -Active head restraints -Seat belts -Three-Row side curtain airbags with rollover sensor -Vehicle stability assist with traction control -Lower Anchors and Tethers for children(LATCH) Advanced compatibility Engineering(ACE) body structure -Tire pressure monitoring system(TPMS) SEATING/LUGGAGE CAPACITY -Room for 7 adults -collapsible seats for 2ndand 3rdrow, leaving more cargo space. -Room for 8 adults -collapsible seats for 2nd and 3rdrow, leaving more cargo space. 4-WHEEL AIR SUSPENSION 4-wheel air suspension which can raise its height by up to 3. This is useful for off road trips. TOWING CAPACITY -7500-ib towing capacity. -4500-ibs towing capacity. FUEL ECONOMY -Hondas variable cylinder management (VCM), which helps improve fuel economy. C-CLASS INSIGHT HYBRID ENVIRONMENTAL FRIENDLINESS -Blue efficiency technology which is efficient at reducing CO2 emissions Reduced CO2 emission. From the table above, it can be observed that the two organizations have developed their products in various areas which include safety, fuel economy, environmental friendliness etc. product development could be said to be a good marketing strategy because many consumers are drawn towards goods they can derive good value for money from. However, the development of a product might result to an increase in its price. This price change might discourage certain consumers from purchasing it which could have a negative effect on the amount of sales of the product. MARKET DEVELOPMENT Market Development is concerned with creating new markets and segments for existing products. MERCEDEZ-BENZ and HONDA have registered their presence in many parts of the world. With respect to Honda, they have manufacturing companies in America, China, Japan, Europe, Indonesia, and India. When manufacturing automobiles in any region, the needs and values of the consumers over there should be put into consideration. This could help in getting the market to patronize you all the more. For example, according to (http://www.world.honda.com) because the European market is highly Eco-conscious, Honda manufactured and launched the Insight Hybrid and the CR-Z Hybrid in 2009 and 2010 respectively, in Europe. Honda also released the Accord Crosstour model in the African and Middle Eastern markets where the SUV category is widely popular in order to cultivate a new CUV (Cross-over Utility Vehicle) category that offers new added value. Mercedes-Benz also has markets in various parts of the globe which include; Africa, Asia, Australia/Pacific, Europe, North and Central America, South America. Apart from developing new markets in different parts of the world, Mercedes-Benz has also tried to look into new customer segments. According to (http://www.exampleessays.com), they are looking to expand their market base to youths. This is being done by using a more life-style marketing strategy which emphasizes a more fun loving, approachable and energetic side of Mercedes-Benz. This new message was obvious when they sponsored the Elton John concert in New York, and sponsoring of the professional tennis. Market development is a good marketing strategy in that it could help increase sales. However, when organizations enter into new markets without carrying out proper research on its suitability for their products, if it turns out that the market is not favorable enough due to reasons such as low purchasing power of consumers, then that product being introduced might not perform too well in the market. DIVERSIFICATION Diversification is developing entirely new products for a new market. Unlike Mercedes-Benz, Honda is into the production of different goods in different product lines. They manufacture Automobiles, Power sports (motor bikes and ATVs), Jets, Power equipments (Generators, lawnmowers, pumps, snow blowers etc), Honda Marines (Engines used for boats), and Honda Engines for (water pumps, agricultural equipments, forestry equipments, etc). Diversification is a very useful marketing strategy in that it helps expand the market base of the organisation and thereby increase the sales opportunities. However, for various reasons such as availability of substitute goods; strong competitors etc, certain brands might become weak or unprofitable and this could affect the organization negatively. A.3) COMPARISON OF THE ORGANISATIONS BASED ON COMPETITIVE PRIORITIES. MERCEDEZ (MBUSI) HONDA(HMA) CONSISTENT QUALITY VARIETY DELIVERY SPEED LOW-COST OPERATION DEVELOPMENT SPEED ON-TIME DELIVERY VOLUME FLEXIBILTY Some of the competitive priorities will be discussed below. CONSISTENT QUALITY Both Mercedes and Honda have consistent quality as a competitive priority. It may be argued that Consistency is being achieved due to the fact that production of cars is highly automated, and so the chances of error are slimmer. Honda and Mercedes for example have robots they use in their plants. These robots have been programmed to work in a particular which helps ensure consistency. VARIETY Both organizations have a wide range of goods available to customers. Mercedes has the A, B, C, CL, GL, S, SLK, E, R, M etc classes. On the other hand, Honda has different models of vehicles which include Accord coupe, crosstour, sedan, Civic coupe, hybrid sedan, si coupe, odyssey, pilot, Ridge line truck, etc. With this in place, the consumers have an array of choices. DELIVERY SPEED Delivery speed might be argued to be an important competitive priority to organizations because usually, consumers prefer going to places where they can get what they want when they want it. If an organisation can not deliver to its customers as quickly as possible, with time they might loose them. This could be one of the reasons why some companies decide to have branches all over the world just like Mercedes and Honda. The nearer you are to your market, the faster you can deliver. LOW-COST OPERATION Majority of Mercedes vehicles are luxurious and sophisticated. The materials involved in the manufacture of their cars are of higher quality and therefore could relatively cost more. This reflects in the price of the vehicle at the end of the day as Mercedes cars are usually very expensive. On the other hand, Hondas cost of operation might be a little lower because they manufacture vehicles that fall in the small car market; the raw materials used may not be as expensive as that of Mercedes. This is an area Honda and Mercedes differ. B.1) CAPACITY PLANNING AND THE EXPANSIONIST MODEL Capacity planning is employed to ensure that the processes in any given organisation run smoothly without any hitch. It would help identify the bottle necks, and then suggest ways of alleviating them. And also, through demand forecasts, it helps to guide the decision on whether or not to increase their capacity by buying more equipment, putting up more structures etc. There are a couple of tools used in capacity planning, and one of them is the expansionist model. The Expansionist strategy makes a forecast on demand and based on this, decides whether or not to expand capacity. The advantage of the expansionist strategy is that if the forecast is accurate, the chances of sales being lost to insufficient capacity becomes very narrow. However, if the demand does not increase as expected, the investment made in expansion might become a waste. Honda (http://www.world.honda.com) used the expansionist strategy when it forecasted that in 2004 they expected sales to increase by 36% of the previous year in the Asia-Oceania region. This made them increase the annual production capacity in India from 30,000 to 50,000 units. This decision to expand would have helped them reduce the chances of missing out on sales due to capacity insufficiency. B.2) INVENTORY MANAGEMENT AND JUST-IN-TIME (JIT) Inventory management has to do with monitoring the in-flow and out-flows of the goods of an organisation in such a way that they do not have too much in store, and at the same time are able to meet up with their demand. There are different methods of managing inventory in an organisation, and one of it is Just-In-Time (JIT). JIT is a philosophy which states that products should be ordered for and produced only when needed, and that they should not be produced to store away. The advantage of the JIT philosophy is that it produces a lean system which is anti-waste. JIT also helps save on cost such as storage, handling, shrinkage etc. However, if suppliers fail to deliver on the agreed date, fail to deliver materials of acceptable quality and/or deliver materials that require scrap or rework, the organisations processes would be disrupted. Mercedes ( http://www.mbusi.com) uses the JIT philosophy for its operations. In their body shop, they have about one days supply of materials, and on the production line they have about 40 minutes of parts. Their team uses a computerized system whereby if they need more materials, a member of the team pushes a button which sends a signal to the screen on the forklift which will inform the forklift driver on which part is needed for what particular station. They use this system as opposed to stockpiling of parts on the line. It works for them because it helps them to be lean B.3) SUPPLY CHAIN DESIGN AND OFF SHORING Supply chain design has to do with the plan the organization has in place to ensure its supply chain does not hinder it from being competitive in the market. Supply chain design is both relevant to the service and manufacturing industries. In the service industry, it seeks to ensure that the resources needed to provide a service are always available in the right proportion, while in the manufacturing industry, it seeks to ensure that the organization does not have too much nor too little stock in its possession so they could meet up with their competitive priorities. One important aspect of supply chain view is off shoring. Off shoring involves establishing branches of an organization in one or more parts of the world. This could be done for various reasons one of which is to reduce the cost of logistics. However, if there is an over-estimation of the suitability of the intended location for the organization, and after setting up there for a while, they discover the prospects are not as bright as they thought probably due to insufficient power supply, they might have to fold up the organization which might be very costly because they would have invested so much in the project. It is therefore important for organizations to make sure it is absolutely necessary before embarking on an off shore project. Both Mercedes and Honda have off shore branches, and this can be reflected in the number of subsidiaries they have all over the world. One of the reasons why they do this is to be closer to their customers, so they can cut down on delivery cost. B.4) TOTAL QUALITY MANAGEMENT AND 3 PRINCIPLES Total quality management (TQM) is used to ensure that the goods produced and services rendered by an organization are of good quality, and up to standard. The International Standard Organisation (ISO) sets the bar for all organizations. TQM takes into consideration three principles which include; level of customer satisfaction, degree of employee involvement and the rate of continuous improvement. Customer Satisfaction: This has to do with producing goods and rendering services that meet the need and satisfy the desires of the customer. It is important for an organization to satisfy their customers because they are the ones who keep them in business. If your customers are unhappy with your goods or services and they leave, then that organization might fold up in less than no time. Employee Involvement: This has to do with getting the opinion of workers on how to move the organisation forward. It might be argued that involving employees in some decision making processes is essential to the success of that organization because, it makes them feel useful and so they might want to put in their best in what they do. They are allowed to be innovative and to contribute their ideas to the organization which might end up taking the company to heights of greatness. Continuous Improvement: This deals with ensuring organizations processes are always efficient and effective. The competition in the market now a days is so stiff that organizations cannot afford to have a lackadaisical attitude towards the continuous improvement of their processes. If they do that, they would loose their customers to their competitors. It could be said that the application of the 3 principles to an organisation would be helpful for its survival. However, it might be expensive to handle especially when it comes to the continuous improvement bit because it might entail having to train staff on a frequent basis. Mercedes (http://www.mbusi.com) tries to continuously improve their processes by training their staff before and even after they commence work. B.5) PERFORMANCE RESOURCES AND BALANCED SCORE CARD Each organization need some form of benchmark to measure their level of performance. Kaplan and Nortons balanced scorecard could be used for this purpose, and it is discussed below. Financial Measures; this has to do with the measurement of the financial performance of the organisation. It takes into perspective concepts like Operating income, ROI, EBIT etc. Daimler AG, (http://www.daimler.com) the parent company of Mercedes had a net profit of C1.4billion in 2008 while in 2009, they recorded a net loss of C 2.6billion. This loss might be partly because of the economic recession. In 2009, (http://www.world.honda.com) Honda had an operating income of Y189, 643 millions while in 2010, it increased to Y363,775. Looking at these figures, one can tell at a glance their level of financial performance for those years. Customer-Relationship Measure; this deals with how well an organisation treats its customers. It considers issues such as customer satisfaction, customer retention etc. Mercedes is a brand which could be argued to be well known for making their customers happy because they produce cars with class. They try to meet the need of sophistication which their customers have. With the release of the CR-Z hybrid, Honda has also tried to satisfy a segment of its market which is the Environmental-conscious group. Business Process Measure; This tries to assess how well an organistion manages its operations. It includes measures such as Quality, cost etc. Using quality as an example, one could say it is necessary for both Benz and Honda to have it because consumers are willing to buy goods that are worth the value of their money. So if these organizations lack this requirement, very soon they would run out of business. Learning and Growth/Human Resource Measures; This deals with how the employees are treated in the organisation. Some measures for this include employee retention, employee satisfaction, training etc. Mercedes is having problems with staff retention due to the recession. As a result, they are retrenching workers because they want to reduce the amount spent on wages. Honda on the other hand has made efforts in trying to make their staff a bit comfortable. Honda guaranteed a sum of 31.7billion for employee bank loan so that if any of its employees take a loan a falters, that sum would bail them out. C.1) EVALUATION OF THE MIX The concepts in the mix might be argued to be essential to any given organisation. This could be because they each play very important roles in ensuring the operations of an organisation run smoothly. Capacity planning helps ensure they dont loose out on demand due to insufficient capacity. Inventory management ensures they have the right amount of stock at every given point in time. This is necessary because they do not want so much stored up away which could result in an increase in holding cost, and at the same time they want to be able to meet up with demand. Supply chain Design helps to ensure the suppliers do not serve as impediments to the organisation from meeting their competitive priorities. Total quality management and performance resources are in place to ensure that the goods and services being produced are of acceptable standard. Based on the functions of the various frameworks described above, it could be said that all the members of the mix are important to both Mercedes and Honda. C.2) IMPACT OF THE MIX ON COMPETITIVENESS It could be argued that capacity planning, supply chain design and inventory management are necessary for competitiveness. Supply chain design is necessary because you need suppliers whose emphases are; on-time delivery, consistent quality and low prices. This could help organizations meet competitive priorities such as low cost operation, consistent quality, delivery speed, on-time delivery, top quality. Having a good supply chain design would be necessary for Mercedes (MBUSI) because they practice a JIT system which is highly dependent on reliable suppliers in order for it to succeed. Capacity planning helps competitiveness in that it ensures the organisation always has enough products to meet its demand. This is essential because if customers seldom get what they want from an organisation, they might loose confidence in them and thereby stop patronizing them. Capacity planning would be useful to both Mercedes and Honda because theres a need to meet up with the demand for their products in order to build confidence in their customers. Inventory management might also be necessary for competitiveness because for an organization which has low cost operation as its competitive priority, having too much goods in store might not be useful in helping them achieve this goal due to holding cost. Therefore such organisations need to monitor the amount of goods they have in stock at a particular point in time. C.3) IMPACT OF THE MIX ON INNOVATION Performance resources and Total Quality Management could impact innovation. One of the metrics in performance resources which has to do with new product/service development could have an impact on innovation because its a benchmark that emphasizes product improvement. Also, the continuous improvement principle under TQM which states that organizations should try to deliver better goods and services on a constant basis could have an impact on its innovative skills. Mercedes and Honda use this mix. That is why it can be observed that each model of car they release is an improved version of the previous one. C.4) IMPACT OF THE MIX ON SUSTAINABILITY The mix contains important principles which include capacity planning, inventory management, supply chain design, performance resources and Total quality management. If these principles are being applied to both Mercedes and Honda, these organizations would most likely remain in the market for quite a long period of time because the application of the mix gives an operational and competitive edge, and being able to compete in the market is necessary for survival. SUMMARY AND CONCLUSION This report has helped to highlight how important it is for organizations to manage their processes well by applying principles such as TQM, Capacity planning, inventory management etc because then, they will not only meet their competitive priorities, but they will be able to compete effectively against competitors in their target market.