Home Brewing for the Beginner Essay Example for Free

Home Brewing for the Beginner Essay Specific Purpose: To inform my audience about the process of Brewing Beer at Home Central Idea: Millions of people drink beer everyday but are oblivious to the brewing process and the ease of making their own. Introduction: Knowledge is Power, Availability, Style, Main Points Main Points: I. Preparation II. Brewing III. Fermentation and Bottling Conclusion: Main Points, Taste Preference, Advanced Techniques (Cheap) An introduction to the Home Brewing process. Today I will be informing you about the fascinating process of brewing beer that millions of individuals enjoy as a hobby as well as a profession all over the world. Brewing beer has become big business for companies like Anheuser Busch and Yuengling. The days of prohibition are over and knowledge is power so being informed is the first step to beginning any hobby. Aside from rare common problems that all brewers experience, this hobby is completely legal, inexpensive, simple, and tastes great! 5 Gallon batches typically range between 20 and 25 dollars, so it’s light on the wallet. As your skills develop, you can create recipes which will produce beers custom designed to your particular tastes and preferences. The main points I will be covering are preparation, brewing, and lastly Fermentation and bottling. Preparation is key to brewing since this will be the phase that determines the quality and clarity of the beer that you brew. In this phase you will be selecting the ingredients, assembling and sanitizing the equipment. When picking out ingredients you can get all the assistance you need from a local brew shop, online, and books such as clone brew that have detailed recipes and instructions to make your favorite beer. Only 4 ingredients are required to make beer ; malted barley (grains), hops, yeast, and water. At this stage in the process, all the equipment you need is a brew pot, fermenting bucket, airlock, and a long-handed spoon. It’s extremely necessary to sanitize all you equipment with an acid based cleaner at this point to prevent contamination. Once you’ve completed your preparation it’s time to start the boil of the ingredients. Almost all home brew recipe s make 5 gallons of beer but you will only have to boil 2.5. The remaining amount of fresh water gets added later. Your specific recipe will tell you how long to steep your grains or how much malt extract to use. The boil usually takes an hour to complete and the hops are usually added towards the end of the boil. After you have boiled your ingredients you now have what is called wort. The first thing you have to do after the boil is set the brewpot containing the wort in a sink or cooler filled with ice. You want the wort cooled down to 70 degrees Fahrenheit as soon as you can. Chilling the wort rapidly is beneficial because it reduces risk of contamination, improve clarity, and so the yeast can start the next phase once it is added. A wort chiller is a copper coil that was designed to help with this task specifically. After the wort has been chilled below 70 degrees it is time to move the beer into a fermentation bucket adapted with a top that features an airlock. Enough fresh water is then added to the wort so that the specific gravity matches the initial gravity value your recipe calls for. Sprinkle the yeast packet on the top and seal the lid on top of the fermenter. That’s it! Over the next 24 hours your wort should begin the fermentation process and over the course of the next week it will ferment. Fermentation will be apparent when the airlock is bubbling. After the fermentation is complete, it is time to bottle the brew. A local brew shop can help you with the supplies needed for this and the procedure to ensure carbonation takes place over the next 3-4 weeks. After the waiting period is over its ready to drink! Today I informed you on the preparation, brewing, and the fermentation of making beer. Making beer is a truly rewarding and exciting hobby! Most people who drink beer havent got the chance to try the many styles that beer has to offer. If you are serious about brewing I would suggest going to a local specialty store and trying out some stouts, pale ales, and porters. You may be surprised to find one that hits the pallet just right. Taking your bottles to club meetings, entering them in competitions, and asking your local homebrew retailer to taste and comment are all good ways to have your beers evaluated. Happy Brewing!

Objectives For An E Business Strategy

Objectives For An E Business Strategy Investigation, critical analysis and formulation of e-business strategy for Under Study who manufacture, maintain, service and support scientific machinery and accessories.   (Jump to) Task A To generate research and formulate an e-business strategy for the company by means of applying five analytical tools in strategic management. Task B Discuss the challenges of adoption of e-business and evaluate the critical success factors for e-business in relation to the company Task C Critically review the process analysis in relation to operations with a view to improving performance. Executive Summary (Synopsis) The aim of the project is to investigate the current state of the company with a view to investment. The intention is to identify and set objectives for an e-business strategy. The company under study has a workforce with over 150 years of experience in manufacturing, maintaining, service and support of scientific machinery and accessories. It is part of a larger group of five privately owned companies. The company aspires to expand its operations into new countries and produce innovative products with exceptional quality however it currently operates with dated and obsolete equipment with no long term business to business agreements, minimal profit margins and no e-business strategy. The report will review a process analysis of the company in relation to expanding its operations into a new country with a view to improving performance. The first part of this report applies five analytical tools in strategic management concluding with an evaluation of a proposed approach. The second part of this report details the challenges of e-business adoption ending with an evaluation of the critical success factors. The third part of this report is a critical review of the process analysis. Task A The objective of this task is to formulate a suitable E-business strategy for the company. Competition has always been central to the agenda of companies. Strategic planning has now become widely accepted as the important task of charting a long term direction for a company. Strategies offer a frame work for understanding position and the underlying forces of competition (M Porter). Reviewing Information Systems (IS) and Information Technology (IT) are used in business to add value and achieve objectives (McKay and Marshall, 2004). Identifying internal and external forces is essential to understanding and defining strategic goals and objectives. The rate of change in both internal and external environments of manufacturing firms is increasing, which necessitates that increased attention be paid to strategic planning and strategy formulation. The approach for this task will mirror that suggested by McKay and Marshal who recommended that internal and external analysis can create an e-v ision. An appropriate devised e-business strategy can then be proposed. McFarlans Strategic Grid In 1993 McFarlan and McKenney provided a strategic grid to examine the strategic role of information technology. The tool is useful in balance decision making. Analysing and understanding the companys information technology and information systems will be vital in terms of how the company does its business currently and how its business model or e-business strategy is formulated for the future. Factory: High operational impact, low strategic impact, this quadrant is about operational improvements that affect large portions of the firm, and are aimed at improving performance or decreasing cost. Turnaround: low operational impact, high strategic impact. This quadrant is about exploiting new technologies to provide strategic opportunities. Strategic: High operational impact, high strategic impact. IT organisations that have most projects in this quadrant understand that IT can both improve core operations of the firm while simultaneously generating strategic options. Application of Model. Figure 1.0 Illustrates the companys position in the McFlaranss strategic grid as strategic quadrant. The company has identified that information technology and information systems are an important part of their future. This has been identified by the companys desire for an e-business strategy. If the company utilised IS IT more then the business will perform more efficiently and potentially gain a competitive advantage. Future investment in IT IS is a necessity for the companys growth. It can not be ignored that the company is positioned close to the turnaround quadrant but on analysis the company has identified its needs for growth thus strategic planning is of higher importance. Pest Analysis When analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organizations supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization (Tsiakkiros, 2002). Kotler (1998) claims that the PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organisational unit. The PEST analysis headings are a framework for reviewing a situation, and can also, like SWOT analysis, and PorterHYPERLINK http://www.businessballs.com/portersfiveforcesofcompetition.htmHYPERLINK http://www.businessballs.com/portersfiveforcesofcompetition.htms Five Forces model, be used to review a strategy or position, direction of a company, a marketing proposition or a proposal. As PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis, a SWOT analysis Strengths, Weaknesses, Opportunities, and Threats is based broadly on half internal and half external factors. PEST ensures that companys performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST is useful when a company decides to enter its business operations into new markets and new countries. The use of PEST, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment. The results can be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000). Application of Model (P)olitical Factors The company opening in new countries must consider political factors such as regulations and legalities; for example an e-business may not be eligible to trade or have premises in a new territory. Chinese regulations for example have limited Googles search engine, excluding Googles You Tube. In March 2010 China banned Googles search engine only to lift the ban a day after. The company must monitor the new Countrys policies or regulations to ensure the way it conducts business is politically acceptable and thus not limiting any future strategies or goals. Ensuring the selected country has a stable political environment will aid company stability. Many countries have restrictive polices which are designed to protect local manufactures from larger organisations. Such policies often hinder foreign companies from entering into these markets. The company should form a strategic alliance with a local company to circumvent any limitations in opening in a new country. (E)conomic Factors The industry is in growth, this is indicated by the company wishing to expand and develop an e-business strategy. Funding in new countrys can be affected by monetary and fiscal rates. Changing inflation rates and currency fluctuation can determine the profitability of the company. A depressed economy will generally be a luxury which results in a number of organisations going out of business, it can provide opportunities for some (Robinson and et al., 1978; Thompson, 2002). If the company is restricted by political issues this would be considered if an alliance was required to set up operations in a new country. A depressed economy could also give an advantage on labour due to high unemployment. Energy availability and cost will require analysing for suitability in the new country. This could affect the e-business strategy in a negative or positive way. (S)ocio Cultural Factors Recruitment in a new country will have to consider technology limitations due to education. Higher educational standards will raise the probability of technology advancement thus having a competitive edge. Consumers attitudes towards online transactions may negatively influence the e-business strategy however if the new country is emerging as an online leader due to political influences such as investing in IT then this could gain a competitive advantage. Cultural attitudes towards e-business across the globe may affect the company objectives. (T)echnological Factors Safer online transactions will aid online communication thus improving business to business communications and orders. Internet accessibility can determine whether the companys e-business strategy will work. Some locations may have limited services or none at all. This can also be a competitive advantage if the area is in development or an internet provider is expanding. Technology advances could potentially aid the company in being more efficient and lean. Becoming a lean world class business will aid the company in being financially competitive. Government investment in technology and research will aid growth. SWOT Analysis SWOT has an extensive history as a model of strategic and marketing analysis. It has featured in strategy books since 1972. SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats in a project or in a business venture. It involves identifying the internal and external factors that are favourable and unfavourable to achieve that objective. The technique is credited to Albert Humphrey It advocates say that it can be used to gauge the degree of fit between the organisations strategies and its environment, and to suggest ways in which the organisation can profit from strengths and opportunities and shield itself against weaknesses and threats (Adams, 2005). The tool is relatively simple to use but its impact if used academically could be influential in a new business strategy. A weakness is that SWOT, having been conceived in simpler times means it does not cope very well with some of the subtler aspects of modern strategic theory, such as trade-offs (De Witt and Meyer, 1998). Strengths: characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: are characteristics that place the firm at a disadvantage relative to others. Opportunities: external chances to make greater sales or profits in the environment. Threats: external elements in the environment that could cause difficulty for the business. Application of Tool The tool has been applied to the company to establish the strengths, weaknesses, opportunities and threats. (S)trengths 150 Years workforce experience. Good company name. High quality production and service. Constantly lowering costs to compete. Informative website Desire to grow the business into new territory. Competent workforce Strategic growth into new country / territory Supply directly to customer After sales service Privately owned International customer base Service and support is world wide (W)eaknesses Limited resources. Website is designed for marketing, no transactions. Limited investment. Bricks and mortar organisation no web transactions Skills shortage or little innovation. Weak marketing with no e-commerce or e- business strategy. Dated processing of supply chain management, lack of information technology and information systems. Profit margins are set to compete for business Still using some dated equipment (O)pportunities Competition is unwilling to take on less important projects. Mergers or strategic alliances in new country IS and IT improvements for competitive advantage enhancing a professional company image. Website sales developing market. International market LTA (long term agreements) with suppliers and customers. Educated general manager. Logistics / transportation. Diversification Up to date technology manufacturing. Potential to open new site. Development of new technology, processes and materials. Faster manufacturing with less power (competitive pricing) Environmental leader Unsaturated market IT director with 20 years experience in e-business (T)hreats Language barriers in potential new country Competitive rivalry in global market for larger contracts. Fluctuation in global monetary policy fiscal/interest rates could leave the company exposed (supply chain). Cheap labour abroad. Fierce competition from larger companies. Possibility of a competitor developing new technology. Porters Five Forces Model of Competition The Porters Five Forces model is a simple tool that supports strategic understanding where power lies in a business situation. It also helps to understand both the strength of a firms current competitive position, and the strength of a position a company is looking to move into. Despite the fact that the Five Force framework focuses on business concerns rather than public policy, it also emphasizes extended competition for value rather than just competition among existing rivals, and the simpleness of its application inspired numerous companies as well as business schools to adopt its use (Wheelen and Hunger, 1998). The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organizations behaviour in a competitive market. These include the following: The rivalry between existing sellers in the market. The power exerted by the customers in the market. The impact of the suppliers on the sellers. The potential threat of new sellers entering the market. The threat of substitute products becoming available in the market. Understanding the nature of each of these forces gives organizations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998). Application of Tool Rivalry Amongst Existing Firms Strong amount of rivalry within the companys chosen products/industry. Rivalry is evident by the presence of larger businesses in the same industry. Competitive pricing indicates fierce competition. Bargaining Power of Buyers Buyers can approach the company and the competition (larger companies) thus creating competition and fierce pricing strategies. Long term agreements are essential to long term stability. The company accepting minimal profit demonstrates the bargaining power of buyers. The company doesnt hold a niche product thus the cost of a buyer switching supply will be minimal. Bargaining Power of Suppliers Suppliers could strategically integrate forward for example assemble the product and sell direct to customer. The World Wide Web (www.) reduces the possibility of suppliers rates being overpriced and uncompetitive. The company can access the www to research suppliers and costs to ensure the right price is being paid thus forcing the supplier to have less bargaining power. If the cost of switching supplier is high e.g. switching from one component supplier to another though there is no evidence of this to the company, it shouldnt be overlooked. Threat of New Entrants The high set up costs and technology reduce the risk of new entrants. This is indicated by larger organisations as competition. The desire to develop the business into a new country indicates that competition is minimal. Competitors could retaliate when made aware of the company establishing itself in a new country. Threat of Substitute Products The threat of a substitute product is high. The company are manufacturing dated products. New technology could eliminate the need for the dated product thus ending the majority of the companys revenue. The threat of the customer not needing the dated part, designed out of the end product. There is no evidence to support the threat but choosing to ignore it could be costly. McKinsey 7S Model The McKinsey 7S model was developed in the late 1970s and named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry (Pascale Athos, 1981; Peters Waterman, 1982). The 7-S model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole, so that the organisations problems may be diagnosed and a strategy may be developed and implemented. The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an organisations ability to change. The Seven-Ss is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make the organisations successful, or not: Strategy plan of action Structure dictates way the company operates and performs (Waterman, 1980) Systems user friendly as possible (Lynch, 2005) Style important in the performance of strategy (Martins and Terblanche 2003) Skill to maintain competitive edge in technology advancement Staff people make a business successful Shared values common goals working together to achieve them Application of Tool Strategy The company has a desire for growth by entering in to a new country and establishing an e-business strategy. Realisation of companys business strategy and the groups corporate goals requires substantial capital investment in the near future. Structure The structure of the company often dictates the way it operates and performs (waterman et al 1980). No formal alliances. Privately owned. Systems Customer satisfaction the website offers a feedback mechanism Local area network provides administration a range of functional applications. The wider area network enables access to email and the World Wide Web. The company utilises computer aided design (CAD) and has a new stock control system which will drive forward control and the desire for efficiency. Style The company prides itself on quality of products and services satisfying customers has a grate deal of focus. Over engineering a product to achieve superior quality may hinder effectiveness to compete in pricing. Utilising a competitive prising strategy to establish sales. Skill Over 150 years experience. Develops machinery from design to manufacturing with the use of computer aided design (CAD). Educated and enthusiastic general manager Appears to be a lack of creativity/innovation amongst the companys workforce. In house training offered to customers in all aspects of machinery and instrumentation demonstrates a high skill level. Staff New general manager has ethicised the need for a flexible work force and working environment. A new recruitment policy has been recognized as a driver for development. Shared values Service support contracts with emphasis on creating quality products and services. Good relationships with a number of organisations, sector manufacturers and developers. E- Business Strategy Objectives Strategy is designed to transform the firm from the present position to the new position described by objectives, subject to constraints of the capabilities or the potential (Ansoff, 1965). The author recommends the following objectives for the companys e-business strategy supported by the data provided from the analytical tools used; SWOT, Porters Five Forces, Mckinseys 7S, PEST and McFarlans Strategic Grid. To innovate new technology and efficiency through strategic investment, employee motivation and empowerment. Increase efficiency and effectiveness e-procurement Increase revenue from global markets Establish an long term agreement (LTA) E-Business Strategy Evaluation and Alignment with Business Objectives To remain competitive in todays global economy, the company must decide what methods, processes, and technologies will best optimize their operations. They have to weigh the company analysis and take action quickly in this ultra-competitive environment. Innovations and faster product development can also often create a barrier for potential new entrants (Porter, 2004) .The Companys dependence on obsolete products and lack of innovation has been analysed as a threat in Mckinseys 7S analysis and SWOT. The workforce has a wealth of over 150 years experience yet the business relays on obsolete components as its main revenue. It is essential to form strategic alliances with suitable organisations across the globe. Collaboration between the businesses will form the foundation for the development of new products. To aid the process of managing the change the author would recommend a well chosen project management technique or tool be applied especially in the planning stage. A suitable tool would be Critical Path Analysis which was originally created to benefit large defence projects. Two models, SWOT and Mckinseys 7S identified a lack of creativity/innovation amongst the companys workforce. It is important for the organisation to instil confidence among the employees about their future in the organisation and future career growth as an incentive for hard work (Purcell and Boxal, 2003) Emphasis is needed on hiring the best staff, providing them with rigorous training and mentoring support, and pushing personnel to their limits to achieve professional excellence. Creating professional excellence will gain competitive advantage over competitors. Empowered employees become more proactive with ideas and solutions. To overcome pockets of reluctance to change, the companys vision for change must provide an atmosphere of communication where concerns about transformation are not seen negatively but rather welcomed. Achieving empowerment and employee motivation requires continuous articulation and communication of reporting results and monitoring each individuals contribut ion and accountability to the overall companys objective. Leading others to think innovatively and promoting the continual discovery of new solutions and technologies is essential for the company to achieve its goal. Motivation is the art of getting people to do what you want them to do because they want to do it (Dwight Eisenhower) In order to maximise efficiencies across the supply chain the company needs to invest in information technology and information systems, the SWOT analysis has identified efficiency gains in e-procurement. IS and IT efficiencies will offer a competitive advantage also enhancing professionalism of the company and its overall image thus being more attractive to potential customers. Information systems and information technology are used in business to add value and achieve objectives (McKay and Marshall, 2004) The data from SWOT and PEST indicate the companys weakness of not utilising e-commerce thus missing an opportunity. The analysis demonstrates that the website is non transactional and therefore does not generate revenue from new or existing customers. To achieve an increase in revenue from global markets the company must form an e-commerce facility on its already established website. Search engine optimisation and key word density will ensure the company websites place on the World Wide Web. A recommendation would be for an external company to monitor the company website and scan competitors sites, frequently reporting results. Recruiting a specialist company would guarantee the site is in the top 10 results for the companys sector. Engaging in e-commerce will positively reduce risk of falling behind the competition. To address complexities of change, each component must be aligned, along with the enabling technology, (Statoils Data Quality Manager; Hesterbrink, 1999). Product suitab ility will need to be established during the planning stage. The company needs to be cable of adapting its business to thrive in this ever-changing world of e-business. In order to recoup costly investments in new production technologies the company needs to be assured that there will be income in the future to pay for the investment, as a way of reducing the risk in the investment decision. Establishing positive relationships and service are extremely important in winning business. It would be clear with an LTA (long term agreement) that customer is committed to the company. The technology advanced product would be key to a successful business to business (B2B) relationship. The company vision shows the company is committed to delivering to the customer a high quality product, on time and at a competitive price which in its self and with the SWOT analysis shows the need to invest. Securing long term agreements will create a competitive advantage. Task B The objective of this task is to discuss the challenges of adoption of e-business and evaluate the critical success factors (CFSs) for e-business in relation to the company. Critical success factors are the essential areas of activity that must be performed well if you are to achieve the objectives. The concept was developed by D. Ronald 1961 and refined by John F Rockart 1981. The company faces various challenges in implementing e-business. Critical success factors can typically be identified for each individual objective. Financial implications The initial test is financing the change process. The company has previously restricted investment due to the unavailability of resources and the absence of commercial awareness of innovation. Positive changes have been put into operation to overcome the obstacles such as employing an enthusiastic, educated general manager and a IT director with over 20 years experience. Initial costs of implementing e-business are: Preparation or project management and communicating the strategy Consultancy fees for Information systems and Information technology Recruitment is costly when advertising for specialists Equipment and software installation including maintenance / service costs Reorganisation of business to ensure world class lean principles are applied Human implications Implementing an e-business strategy will raise numerous issues within the workforce and business. Essential training will need time allocating. The company will have to capacity plan the impact on the business. Training the workforce to operate the new equipment / tools Creation of new procedures is time consuming Support, emotional and stress often employees dislike change If an alliance is formed will both sites be utilised potential redundancies A formal approach for managing change, beginning with the leadership team and then engaging key stakeholders and leaders should be developed early and adapted often as change moves through the organization the leaders themselves must embrace the new approaches first, both to challenge and to motivate the rest of the organisation. They must speak with one voice and model the desired behaviors. Data Protection Security is a prime concern for the successful adoption of e-business (Chaffey, 2007). Data utilized by the company requires safeguarding against: Fire Fraud or theft Failures in the system data recovery and backups on or off site Electronic espionage Customer information Strategic Alliances Firstly a suitable company needs to be identified for its qualities and business presence. The alliance company will need to compliment the company regards to vision and objectives. Organisational differences will need aligning for example one company may have a strong environmental stance when the other chooses to ignore the issues thus causing friction and possibly undermining already implemented procedures. Once the organisations have formed realignment or restructuring will need to be completed for example in lean world class manufacturing both sites would not require a human resource executive. The alliance formed must be mutually beneficial to both sides thus creating harmony between the two businesses. Long Term Agreements It would be clear with an LTA (long term agreement) that the customer is committed to the company. Developing innovative technology would be required to approach potential new and old customers with the objective of securing an LTA. The technology advanced product or products would be key to a successful business to business (B2B) relationship and long term agreement. The company vision and the acknowledgment of a required investment demonstrates the company is committed to delivering to the customer a technology advanced high quality product, on time and at a competitive price which in its self and with the SWOT analysis shows the need to invest. Securing long term agreements will create a competitive advantage and a secure future. Worldwide Business Worldwide trading is a competitive market with numerous challenges. E-business will encounter cultural variances which will need to be overcome if the implementation is to be fully successful. Operating in a worldwide market will create a fiercely competitive environment. The United Kingdom is known for technology development but not mass production. Technology development is suggested to be skills related. Mass production is suggested to be low cost labour operating with proven processes if a suitable product is developed then a consideration must be applied for outsourcing production to a low cost labour facility which will allow the company to compete in the worldwide market. Technology Small and medium sized businesses are often reluctant to develop into e-business due to resource. The company will have to commit to resourcing the e-business strategy. Implementation of the software will be challenging, adapting the workforce to an automated business process will be difficult. Employees are often reluctant to change. A transformational management style would be beneficial in impleme

Business analysis of General Electric

Business analysis of General Electric In the history of technology in the united scales, the history of General Electric company constitutes a significant part. The growth of General Electronics (GE) from a mere home laboratory of Thomas Edison to one of the largest companies from simple early applications to complex 21st century high tech wizardry, has been quite outstanding. the company has also merged with other companies, broading its scope , moving from technology to services, consisting of total 11 main operating gates : GE Advanced with high-performance, fused quartz and ceramics which are used by a good number of industries, silicon-based products. One of worlds leading appliance manufacturers, GE Consumer and Industrial is a preeminent global maker of lighting products for consumer, commercial, and industrial customers. Besides, these functions, GE Commercial and Industrial also supplies systems, services and integrated industrial equipment. The energy industry is served by GE Energy, a prominent supplier among its field. P1. Background to Change Major changes in General Electric: The economic problems of GE can be deciphered through its managerial reshuffling. General Electronic experienced a far reaching change when John F. (Jacx) Welch Jr. became the chairman and CEO in 1981. Welch intended to give power to the subordinates i.e. the periphery of the company by invalidating the hierarchy of the management, assigning divisions according to the per formative skills, which he followed from predecessor Reginald Jones time. GE bought 338 business and product lines for $11.1 billion and sold 252 for $5.9 billion over the next few years. Jones wanted GE to be top ranked in all the fields of operation. During this period, in 1943, General Electric Credit Corporation, another of GEs operations was formed. And as it expanded into other markets like real estate, leasing and selling of heavy industrial goods, insurance and inventories its assets doubled to $16 billion between 1979 and 1984. Also, the leasing operations protected the parent company from heavy taxes. It w as done by leasing of the credit corporation on the equipments developed by GE which suffered accelerated depreciation. Forces for change: Controlling bureaucracy: Welchs signature concept was to spark productivity and save the company from eminent threats. Wales took care of both internal and external problems. He sorted out internal problems such as between functions eg-that between sales and manufacturing and external problems like GE and its suppliers and customers. Welch incited any kind of barrier was bad for the company. Information travels easily in an open, boundary less organization. There is a nothing to hinder the continuous flow of decisions, people, ideas etc. the century-old systems of resided hierarchy and bloated bureaucracy in Ge near got rid of because this Boundary less behavior. Welsh spent two decades reforming the bureaucratic procedures of GE, because he thought anything that hindered the free flow of ideas and learning was destructive. Lack of sharing information: Because there was a communication gap between the lower and top management, the goals were not clear to them. So they needed to change and adapt so that everyone could be aware of the goals and objectives of the company. Mobilizing the workforce/winning competitive advantage: GE had to change and adapt itself to the changes around and compete properly and not lag behind. And when this change happens throughout is required to minimize the disturbances associated. For expanding the business: In order to expand his business to suit the competitive market, Welsh globalizes , many were not doing well, so Jack first handled the problems playing weaker domestic sector (i.e. the hardware phase: restructuring, delivering, downsizing etc. ) After solving the hardware problems, Welch concentrated on making GE global. Advancement of Technology: Change is a must to adapt to the growing technological market. Internet initiative was used by Welch. Welch recommended every process to be digitized, as a part of GEs e-Initiative. In making the company diligent and agile this step was much instrumental. P2. GE organizational structure is combination of top-down bottom up structure. Corporate Executive Office Chairman CEO Corporate staff Finance Business R D Human Legal Development Resource GE aircraft GE transp- GE industrial GE Plastics GE Appliance GE supplies Engines orttion systems GE Power GE Medical GE Lighting GE specialty NBC GE Capital Systems Systems Materials GE Capital 26 Business organized into 5 segments Consumer Mid-market Specialized Specialty Equipment Services Financing Financing Insurance Management Advantages of Bureaucratic structure organization: Functional economics of scale Minimum duplication of personnel equipment. Enhanced communication centralized decision making Disadvantages of Bureaucratic organization Submit conflicts with organizational goals. Obsessive concern with rules and regulations. Lack of employee discretion to deal with problems. P3. Mechanistic Organizational structure: Qualities such as high complexity, formality and centralization mark the Mechanistic structures. These structures are well suited for repetitive functions and actions. They react to unpredicted events relatively slow and are highly depended on planned behaviors. Mechanistic Organizational Structure Mechanistic Organizational Performance AlignmentStructure Control-oriented IT Alignment Performance Control-oriented IT Advantages: High specialization Rigid departmentalization High formalization Disadvantages: Narrow span of control Flow of information is not free Centralized Organic Organizational structure: Organic structures emphasis on parallel relations rather than vertical ones and are relatively resilient and adoptable. It is influenced by skills and knowledge rather than status-related authorities, the focus is not on commands but on data sharing and responsibilities are rendered flexible not based on terms of reference. Organic Organizational structure Mechanistic Organizational Performance AlignmentStructure Coordinatio-oriented IT Alignment Performance Control-oriented IT Advantages: Open communication network Empowered employee Wide span of control Cross hierarchical team Free flow of information Disadvantages: Low formalization Minimal formal rules Little direct supervision. .Organizational transformation (Centralized -decentralized) The key to success is innovation. And centralization and decentralization-two structural dimensions of the firm affect this innovation. The degree is to which decision-making authority is kept at top levels of management is known as centralization. And the degree to which -decision-making authority is pushed down to lower levels of the firm is known as decentralization. There is a dispute regarding which is better among the two. There can be two types of centralization and decentralization -geographical and the hierarchy among the employees. In the case of the geographical centralization, an organization can have just one headquarter and vice versa in the case of decentralization. The other type would be when the authority and decision making sessions are involved. The centralization or decentralization of an organization depends on factors such as type of industry etc. In the case of centralized organization, the hierarchy is strictly maintained and power is held by the top executiv es and the headquarters. In decentralized organizations, the power all including various outlets and lower level managers. Tesco, the super market chain, where each store has a manager who take important decisions regarding the store, and is responsible to the regional manager is an example of decentralized organization Recommendation: The firm should have a Communication consultant who will help to assess the situation. This in turn will help the business to be as productive as possible. The communication assessment helps to figure out the faults through an external source and tries to solve them and provide better business structure and design. P4. Features of radical Changes Merger Acquisition: During the early 1980s Factory automation became a major activity. Calma and Intersil were acquired by GE and were essential to this program. To manufacture and market Hitachis industrial robots in the United States, GE also entered into an agreement with the Japanese, company. In order to robotize its locomotive plant in Eric, Pennsylvanian, and GE spent $300 million by itself. GEs aircraft engine business also participated in an air-force plant-modernization program two years later. The controversial B-1B bomber engines were also manufactured by GE. Restructuring: The six sigma was adopted by GE in the late 1990s under Welchs leadership, a Motorola, Inc. and Alliged Signal Inc pioneered quality control and improvement initiative. Costs were cut by reducing errors or defects through this program. The six sigma was claimed to yield $1 billion in annual saving by 1998. Restructuring continued within the company including a $2.3 billion charge in late 1997, which led to the closure of redundant facilities to shift to cheaper labour market production. Reconfiguring the business portfolio: Welch wanted GE to be identified as a broadly diversified corporation. Buthe was also aware that GEs business portfolio should at first focus on a limited number of sectors which will be potentially attractive for growth and profitability. In his initial says, Welch confessed about his interest in dealing with the top companies in the global market. He highlighted GEs resources on its best opportunities: the consumer electronic business, mining interests ( notably Utah International), small household appliances division, semiconductors, and radio stations were sold off by Welch. And GE acquired small companies. the bigger ones includes RCA, NBC, Kidder Peabody, CGR etc. GE made over a hundred acquisitions with financial services being the largest sector acquired. Charging the structure: One major factor which contributed to the transformed product-market face of GE and the consequent increase in growth was the changes in the business portfolio. Along with it, revitalizing the management systems and management style was required to generate ambition. This also led to a changed structure of GE. Several layers of management and large numbers of administrative positions were eliminated under Welchs supervision of special importance is the disbanding of GEs sectors, which resulted in the direct reporting by 13 business leaders to the CEO. The CEOs office expanded to include a corporate Executive council to facilitate GEs senior corporate officers and business level chiefs. Changing management systems and processes: A more flexible and responsive corporation resulted from the changes in GEs structure. GEs highly developed management systems were also required to be changed, specially the much popular strategic planning system. A less formal and more personal process substituted the staff-led, document driven process though the framework of an annual planning cycle was retained. Modify human resource management: The development of management talent contributed GEs long-term development and performance. Welch retained GEs well-developed management appraisal system and development. He thought that greater flourishing of managerial talent could be achieved by vesting managers with greater profit and loss responsibility early in their career. And better incentives were required to encourage risk taking and higher levels of performance aspiration. The bonus system was redesigned to reach into the middle of middle management. There were stark discrimination on the bonuses. Corporate Initiative: Periodic new corporate initiative as mechanisms to drive particular aspects of companywide performance was used by Welch. About every two year Welch would announce a major new initiative designed to energize the company and drive its performance in a particular direction, while strategic planning, financial control and human resource management provided the basic systems for managing GE. This initiative would be absorbed into the ongoing management systems of GE over time. Work out: The no-holds-barred discussion sessions that Welch held with different managers groups at GEs Management Development Institute at crotonville, New York, gave birth to the idea of GEs work-out process. Because work-out has a practical and an intellectual goal, it could achieve fundamental changes in management the riddance of several bad hobbits during all this twice being the objective. The second objective is intellectual, which puts the leaders of all businessing front of 100 or so, if their people, to let them know what they think. This is done 8-10 times a year. They will get to know more, about their business- feelings, opinions, resentments etc. Its about re-defining the leader-subordinate relationship. This helps form all kinds of dynamics, source go and hide, and others emerge successful. The Boundary less Organization: Though Welch reacted strongly to GEs is depicted as a conglomerate, it did GE good, for the utilization of its products and geographical diversity for the betterment of performance led to GEs growth and expansion. Globalization: GEs global responsibilities included exploiting international growth opportunities and the advantages of global reach. This was done through exploiting increased learning opportunities and global that affected particular countries could be handled properly because of global diversity. Also the advantages of such downturns were well-used. Six Sigma: This program dominated corporate initiative and primary driver of organizational change and performance movement during 1998 to 2000. Soul transferring cultural initiative- such was it called by Welch. Motorola inspired the methodology of measuring , analyzing, defining, improving and thus controlling every process that lead to the customer so that the defects reduced to 3.4 per million. P5. Evaluation of the Change Merger and acquisition: Several importance purchases were made by GE in the year 1986, including the $ 6.4 billion purchase of the Radio Corporation of America (RCA), the largest for the company till that date. Interestingly, GE in 1919 had helped to found the company. GE/s broadcasting business was brought into full force by RCAs National Broadcasting company (NBC) , the leading television network. This RCA GE match was considered beneficial by the company though both the companies were heavily involved into consumer electronics. This success had been possible because GE had been shifting into service and high technology from manufacturing compared to the50 percent 6 year before almost 80 percent of GEs earnings came from services and high technology, after the merger. GEs labs made RCAs famous David Saran off Research Centre quite redundant and divested itself of it. RCAs television manufacturing business was sold to a French company Thomson in 1987. Thomsons medical diagnostics b usiness was taken up by GE instead. And to complete 130 European acquisitions, GE spent $ 30 billion during the 1990s. Restructuring:- e-business was chosen by GE for further growth of the company in 1999. GE cautiously reacted to the Interact explosion in the 1990s. Though it was thought that the Honeywell deal would serve as a capstone for Welchs much admired leadership it ended sourly. Because of the11th hour negotiations between the European regulator and GE executives were broken down, the European commission had to block the deal on antitrust grounds on 2001. Restructing: The Headquarters and the interiors of the business experienced further elimantions. Decisions were taken by the operating units which could have four layers in the hierarchy. Welch was named Neutron Jack for his administrative costs and ruthless attacks on bureaucracy. It was so severe, that many people had to leave. Human Resource modification: Because of the restricting, fewer people were left, and the 10 to 15 percent bonus was substituted by 30 to 40 percent bonus. Also, much wider range of managerial and technical employees received stock options instead of just the top echelon of management. The number of stock options receiving employees increased to 22,000 by the end of 1995, from a 400 in early 1980s and Welch said the stock compensation which was based on total GE performance salary or bonus associated with the performance of individual business or unit then. This enables a harmonious relationship between the interests of the individual, the company, and the share owner behind the powerful on company results. Workout: the interaction between people will create the scope for rewarding and more fulfilling jobs for it is when they meet and talk, opportunities broaden. The quality of work life too is bound to improve. Work out concentrated on eliminating bureaucratic practices, at first but with time it evolved to the analysis and redesigning of complex cross-functional processes-involving customers, suppliers and Ge employees. Sig Sigma: It became an unprecendents fervor across an unprecendentant broad front at GE. 100000 people were trained in sciences and methodology in four years, GE reported by 2001,- six sigma was their way of working, speaking a common language of DMOS (defects per million opportunities), Needs Assessment Maps, CTQS (critical to quality) , FMEAs (Failure, mode effect analysis) etc. GE gained as lot in performance and it moved the rank from reduced waste and lower operating costs to improved, financial management and faster customer service. P6. Model of Planned change: The action research model, contemporary adaptations to the action research model, and Lewins change are the three theories which tells about the process of planned change in the organization. It showcases the four basic principles that is to be carried out by the practitioners and organization members. It can be drawn into a diagram, a flowchart , depicting the series of actions and its consequences-events from entering and contracting, to planning and working out the change, to evaluating and institutionalizing change. It is not a simple linear flowchart, but is constructed of overlaps and cycles among the activities. Unfreez, change, freez: Infreez, change, freez (or Refreez) is a three stage theory of change designed by Kurte Lewin . Though the three stages can be complicate it is not required , for it works fine even when simple. But the simplicity has been criticized. And though it has been change considerably since 1947, it is still relevant. This model has helped the formation of many others model as well. The three stages, i.e. unfreezing, change and Freezing are explained in the following paragraphs:- Stage 1. Unfreezing:- The first stage is the most important and should be understood very well. It creates the ground for the change. It creates awareness about the change and prepares the organization for it. Making it come out of the comfort zone. Under Welch this first stage contributing the organization, using lessens, delaying the organization etc. He actually merged and used acquisition, using the six sigma to bring about this change Stage -2- Change-or Transition Kurt Lewin knows that change is a process, not event and called it transition. This journey also involves our reaction to the change. In the second stage the changes actually occur. He used merger and acquisition changing management system and process to help the change happen. This involved restructuring, reengineering and changing the HR to bring out the best within. He also made use of devices like work out globalization, boundary less organization, and six sigma. Stage 3. Freezing It is variably called the Refreezing. It is about stabilizing the situation after the changes. It is about making people aware and comfortable about the new norms, routines. It can be time consuming. GE achieved huge success through this method and was ranked 10 in the SFORTUNE 500 magazine. P7. Implementation Procedure Communication Communication is the most important and required process to let the employees know about the consequences of not adopting to the change and the benefits that the post change time will reap. Objectives, coverage, timing, costs; individual and organizational implications and change methods should be communicated. Educated and Training Education and Training is required to teach the employees who may not have the desired environmental, functional, financial, organizational, technical, strategic and behavioral knowledge or skills. Participation and Involvement Participation of the concerned people is absolutely necessary right from the beginning. This also helps to generate a sense of responsibility, ownership. Facilitation and Support Skilled facilitators implement the change initiatives. Proposals and issues since resolution of conflict team building and development of a conducive change climate are surfaced through them. Negotiation Some valuable things are needed to be exchanged for reducing the resistence among the employees, so the change agent has to negotiate. This is particularly interesting in the case of resistance from powerful employees. Tongue battle, supportive facilitator and cognitive Reasoned are the three styles of Negotiation. Implicit and Explicit: Direct threats or force is applied on those who strongly resist lent this method works only in a crisis situation, otherwise it is quite redundant. Contingency plan for GE A contingency plan can be made when eligible CEO candidates who cannot be fully located or trained by the hand once deadline, and through this Welch could extend the tenure. The person can be employed as an unofficial consultant, even though the government mandated retirement age is reached by 2011. The company would be benefited with adequate breathing room. The chances of the creation of dangerous powerful acumms during the change or transition from old tonew CEO can also be avoided.

The Civil Rights Movement and the Kerner Commission Essay -- Civil Rig

The civil rights movement was a period of time when blacks attempted to gain their constitutional rights of which they were being deprived. The movement has occurred from the 1950's to the present, with programs like Affirmative Action. Many were upset with the way the civil rights movement was being carried out in the 1960's. As a result, someone assassinated the leader of the movement, Dr. Martin Luther King Jr. Many blacks were infuriated at this death so there were serious riots in almost 100 cities. President Johnson then appointed a committee called The Kerner Commission to study the civil rights movement. They concluded the following: "We are moving toward two societies-one white and one black, separate and unequal." There is some truth to the Kerner Commission report, but on the whole the civil rights movement has been a success because blacks are better off now than they were before it began. The Kerner Commission report has some truth when it comes to blacks and politics, but overall the movement was a success because blacks have achieved more politically than before they began. Before the movement, blacks had almost no political power due to laws designed to prevent blacks from voting, like poll taxes, literacy tests and the Grandfather Clause. Also when some blacks went to vote, people simply wouldn't let them register. Due to lack of voting ability, no blacks were elected into office and therefore, blacks had no say in the government. Also, blacks were not allowed to serve on juries, yet they were almost always found guilty in court, even if the evidence was clearly against them. For example, years ago a boy in Georgia broke into a school to steal an ice cream. While he should have gotten a few hours of community service, he got three years in jail just because he was black. A truth to the Kerner Commission report that occurs today is that blacks are not being represented in Congress proportionally. While 12% of U.S. citizens are black, there is only one black in the Senate out of a hundred seats. This is a failure because blacks should be proportionally represented because it is their right to have a sufficient say in government. However, the civil rights movement was more of a success because blacks got the vote. The 24th amendment outlawed the Poll tax, the Civil Rights Act of 1964 protects the rights of al... ... a chance to show that they were equal to whites. It is a success because blacks got a better education and didn't feel inferior. A second social success was integration in all public places. This came about from the Civil Rights Act of 1964, which was made after the government witnessed Dr. Martin Luther King Jr.'s silent protests. They also realized how unfair segregation by color was. Some examples of silent protests would be when blacks would "sit-in" at an all white restaurant, all day long just to protest segregation's injustice to blacks. They also boycotted and marched. The integration in public places helped the blacks and was a success because it got them equal rights which was one of their major goals. As stated above, there are a few truths to the Kerner Commission report today, but the successes of the civil rights movement outweigh the failures. Blacks are better off because they have achieved political power, received equal opportunity, better pay and better jobs in the workforce and have ended segregation. Things can only get better for the blacks now, and maybe they can turn some of the small failures of the civil rights movement into successes.

Catherines Inner Self in Henry Jamess Washington Square :: Henry James Washington Square

Catherine's Inner Self in Henry James's Washington Square Much is said of the internal reality of the characters in Henry James's novel Washington Square. It is seen as a "psychological novel" where most of the action takes place in the minds of the characters. In an essay titled, "Washington Square: A Study in the Growth of an Inner Self," James W. Gargano addresses the internal reality of the character Catherine Sloper. Within the essay, Gargano argues that "James anatomizes the process by which Catherine's active, secret existence transforms her into an imaginative woman" (129). Although a few of his premises seem far-fetched, I agree with the major arguments of his critique. Most of his examples support his thesis well. Early in the essay Gargano states that, "in James's fiction, naivete may wear the look of an empty mind, but it is often the ideal preparation for receiving life fully and impressionably" (130). Gargano then tells us that Catherine will feel more intensely because she has not known strong emotions before. According to him, "her ingenuousness is the key to her genuineness and her sense of seeing, feeling, and judging life for the first time" (130). I feel this is a key element in understanding Catherine. Gargano also brings out how well James "traces [Catherine's] developing insight" (131) into her own nature. He refers to the part in the novel where James writes, "She watched herself as she would have watched another person, and wondered what she would do" (qtd. in Gargano 131). Then Gargano adds, "it is hard to write off as dull a young woman with such a vivid 'contact' with her own development" and Gargano also felt that "James intended the dullness to be ascribed to the bright people around her who never even glimpse her hidden abysses" (131). This is an interesting viewpoint, which, when applied to the novel, adds a deeper perception of the characters. Some of Gargano's other premises were not as insightful for me. For example, I had trouble with what Gargano called Catherine's "transcendentalizing imagination" that causes her to create "beautiful figments" of Townsend that possess her and become the "paramount value of her life, and other attachments, no matter how strong, must somehow accommodate themselves to it." (132). This contention tends to belittle Catherine's intelligence as well as her grasp of reality. I also disagreed with one of Gargano's conclusions that, "loss is the real goal for which James's central characters are secretly striving, that they engage life only to see that it falls below their lofty expectations and that mastery and transcendence are gained by renunciation" (135).

Organizing Relationships Traditional and Emerging Perspectives on Workplace Relationships Essay

Business ethics               One of the issues that have raised concerns in business nowadays is the relationship between senior employees, and the junior employees of the opposite sex. For years, senior employees such as managers and directors have been accused of sexually or emotionally abusing the junior employees working under them. Some are even accused of threatening to dismiss the employees who decline their request for sexual favors from them. Though this may be seen as sexual harassment, the case might be something different from that. Simply because the relationship is between senior and a junior employee, it may not be right to rush to a conclusion that the boss is sexually or emotionally exploiting their subject. It may be a relationship that has developed naturally due to the level of intimacy of the two employees of the opposite gender.            The controversial nature of this issue is clearly portrayed in the mail online article of November 13th, 2013. The article explains that the report of a study carried out by business week has shown that most of these relationships between employees have nothing to do with harassment. During the survey, it was found out that most of the people working in the offices would be up to a sexual relationship with someone from their office if they got the chance. Of the 2500 respondents interviewed during the survey, 85 percent said it was right for employees within the company to be allowed to have sexual relationships. Some even confessed of sexually admiring their coworkers. After all this, why does the Human Resource department discourage intimate relationships between their employees of opposite gender? The answer is that they conclude that one of the parties in the relationship is sexually harassed, especially if one of the parties is the boss of the other.                Some people may accuse me of supporting the behavior of the bosses to engage in sexual relationships with their colleagues. But if we consider some working conditions in some organizations, we see that the relations originate absolutely from intimacy and not harassment. Consider the case of a male manager, who works with a lady as the personal secretary. It is very possible for the two to engage in an affair due to the intimacy created by the working conditions. The two attend meetings together, go for lunch together, spend time together in the office, sometimes they go together to attend meetings far from their place of work, and many other closely spent times. From all these close relation, is it not against the laws of nature for something more than boss-secretary relationship to happen? Ironically, when a relationship develops between the manager and his secretary, the manager will be accused of sexually harassing the secretary! In my opinion, the boss wo uld be emotionally harassing the secretary if he chose to ignore the feelings that develop after been together almost all the time.               It may also be arguable that boss-subject relationships may adversely affect the performance of the employees. Employees may be reluctant in their work simply because the boss, who is supposed to supervise their work, can not condemn them because of the existing bond. This may be the idea behind the fight by the human resource department against sexual relationships at the workplace. However, this may not always be the case. This relationship may boost the performance of an employee who will always be trying to be the best to impress the boss. The article workplace relationships on Wikipedia explain of a theory, Workplace Relationship Quality and information Experiences, which originated from a study conducted by Patricia Sias. The theory states the most productive employees are the ones with high access to information about their workplace. It is obvious that the employees with a relationship more than the ordinary workplace relationship have a higher access to business information. I may, therefore, be right to say that the boss-subject relationships can play an important part in boosting the productivity of the employees. The article further describes relationships at the workplace as â€Å"workplace romance†. It explains that though these relationships may not make the workplace so comfortable for other employees; it plays a very important part in the working of the parties involved in the affair. It increases performance due to high motivation and overall job satisfaction.               Even though some senior employees in some business organization sexually exploit their junior colleagues, let us not mistake every relationship for sexual exploitation or harassment. It is good to appreciate that these bosses and their subjects are just ordinary people and what makes their difference is only the working position and titles. When there is a relationship between two junior employees of opposite gender, this is taken to be an ordinary love relationship. Why then do we have to treat the seniors differently? Aren’t they the same as the juniors? What marks the difference is only job level. It is, therefore, necessary to analyze the situation before concluding that a boss is sexually harassing a junior workmate. References Sias, P. M. (2009). Organizing relationships traditional and emerging perspectives on workplace relationships. Los Angeles: SAGE. (https://www.goodreads.com/user/new?remember=true) Sias, P. M. (2008). Organizing Relationships Traditional and Emerging Perspectives on Workplace Relationships.. Thousand Oaks: SAGE Publications. (http://www.amazon.com/Organizing-Relationships-Traditional-Perspectives-Workplace/dp/1412957974) Source document

Case Study: Swatch and the Global Watch Industry Essay

Introduction The Swatch Group had many early on successes due to repositioning strategies and a boost from acquisitions. On the surface, the Swatch Group was the world’s leading manufacturer of watches in the late 1990’s. They had 14 percent of the world market share and it appeared that gross sales and net profits were on the rise; however, under the covers, it was a much different story. Swatch was facing a myriad of issues that needed to be resolved in order for success to prevail. Management issues were plaguing Swatch; multiple key figures stepped down from the board in the mid 1990’s citing the CEO’s inability to listen to his staff. In addition to the management issues, Swatch was also facing fierce competition in many market spaces, including the largest consumer base space, the United States. In addition to lack of market penetration in the United States, Swatch had too many products, which equally distracted buyers and sellers. Lastly, manufacturing costs continued to soar in Switzerland, the Swatch Group’s home base. Other competitors were quickly cutting their costs by moving manufacturing overseas. The Swatch Group was at a crossroad; the strategy that had worked so well in the early 1990’s was no longer viable – the question now was what to do about it? Management Issues and Potential Resolutions Although Swatch faced many issues, internal dissension can be the quickest death of a company. Hayek needs to ensure the people chosen to replace the board member’s who stepped down are able to handle his leadership style. Equally as important as selecting a high-performing executive team, Hayek need’s to realize that traditional organizational principles of functional hierarchies will inevitably lead to rifts in management. This is a social issue that Hayek needs to address. If ex-board members continue to bad mouth Swatch it could have an impact on sales. To address this issue, Hayek needs to improve his leadership style and management model to actively involve his staff. As an employee, even an executive employee, being flat out told what you have to do all the time is often the ingredient for an unhealthy work environment, especially when trying to implement change. However, when  employees are involved in making a decision it is often easier to put into action th e decision that was made. There is sometimes a higher acceptance of the decision when it comes from the ground up and there is a higher probability that the decision will be executed efficiently. The outcome of such a change will inevitably be positive. When Hayek has more then one person getting together trying to solve a problem, he will have an increased chance at a better solution then if he were trying to solve it himself. The employees bring a lot to the meeting room with them. For instance, they may have â€Å"inside information† about why production is faltering. By creating a high-performing executive team that works as a cohesive unit versus â€Å"he has to be the big boss alone, and can never share opinions† unit, the Swatch Group should begin to see an improvement in the softer issues, such as employee satisfaction, higher executive employee retention, and a more open communication model. Competitive and Product Mix Issues and Potential Resolutions The Swatch group as a whole had an unparalleled ability to provide consumers with a wide range of products in all market segments. They could provide hi-tech watches that functioned as ski passes, fashion watches such as the Swatch, or an exquisite diamond studded precious metal watch – Swatch provided products at all extremes. However, certain product lines were more successful then others. The Swatch watch in particular was struggling to gain market share in the United States and elsewhere for several reasons including fickle consumer behavior and a product line that was daunting to consumers and resellers. The Swatch product was quickly loosing its competitive edge against other players such as Fossil, Guess, Timex and Seiko. Resellers were dropping like flies and consumers felt like Swatch had saturated the market with too many products. Worse of all, consumer perception was that Swatch was a fad. Swift decisions need to be made to reverse this before the brand becomes part of a MTV or VH1 â€Å"I love the 90’s† television show. Luckily, most of the decisions to be made regarding product mix have very little impact socially and ethically. Omega (part of the Swatch Group portfolio of brands), was facing a similar demise in the early 1990’s and successfully repositioned itself and became a major profit driver for the group. It achieved this by carefully selecting its marketing programs and drastically trimming its product line from 2,500 to 130. This strategy needs to be applied to Swatch, which focuses on the basic and middle-priced market. This is supported by the fact that the number of resellers dropped from 3,000 in the early 1990’s to 1,200 in 1998. Swatch needs to apply a SWOT analysis and determine which product lines are successful in this market space and drop the remaining products. In addition, the Swatch Group needs to look at their consumer base and determine if it would be profitable to launch a new product line that captures past consumers who have now progressed to the next stage of their lives and are desiring a more expensive and sophisticated watch. A marketing campaign needs to be chosen that helps attract new consumers in the basic and middle price market focusing on the smaller number of brands and a separate campaign should be created that focuses on keeping their existing customer base. These campaigns should be replicated to other countries to ensure the Swatch brand remains visible. Neither of these resolutions will be easy to implement; however, if done successfully Swatch will decrease their production costs because there are fewer product lines and increase their sales based on marketing campaigns to two separate groups: new customers and existing customers. Manufacturing Issues and Potential Resolutions Driven by high demand, offshore manufacturing centers are appearing throughout the world. Many of the Swatch Group’s competitors have switched their manufacturing to centers overseas and decreased their fixed costs, which resulted in an increase in profit. The Swatch Group had always remained committed to its home base, partly because their home base possessed centuries of expertise in watch making and partly because a timepiece cannot be stamped with â€Å"Swiss Made† unless at least 50% of Swiss manufactured products by value are present in the  timepiece. Although the mix of factors raising the possibility of outsourcing varies from company to company, there are a few themes that the Swatch Group needs to explore regarding the pressures to outsource. The Swatch Group needs to recognize that general concerns regarding cost and quality are the main drivers for outsourcing. In addition, outsourcing can turn a fixed cost into a variable cost, which will significantly help a company with varying volumes. Although most businesses can benefit hugely through outsourcing or manufacturing in another country, the Swatch Group needs to determine if it will be successful and profitable for them. Outsourcing a portion of their value chain is not a quick-fix response to production costs or performance lags. Additionally, the choices for outsourcing locations are many, they are not all equal, differing in several critical areas. Selecting the right option requires balancing factors such as cultural affinity, geopolitical risk, cost, and resource availability. To help narrow their focus in their analysis, initially, the Swatch Group should look to India for their outsource location. India has a large talent pool of skilled, experienced watch workers. These workers have hands-on experience supporting Titan industries. Titan is continuing to grow as a company and the pace of resource expansion is dramatically improving in keeping up with current as well as future technologies. Additionally, the Swatch Group should center their outsourcing attention to the assembly portion of the value added chain. This will ensure that 50% of the manufactured parts are still completed in Switzerland. The design, marketing, and most of manufacturing of the watches still remain where the expertise is located. The assembly of a watch is an extremely repeatable and easily controllable task, which will increase the success for outsourcing. Outsourcing assembly to India will have many positive effects for the Swatch Group. Cost reduction remains the primary objective of outsourcing; the Swatch Group will have the ability to provide a good at a lower cost and should be able to make the assembly cost more predictable and controlled. Ethically and socially, outsourcing has a caused many individuals and  increase in job insecurity. Lower labor standards in other countries are forcing many companies to outsource much of their manufacturing. This is especially unsettling for individuals who lack the skills to make themselves difficult to replace, such as in manufacturing. If the Swatch Group decides to outsource assembly, there will be no easy way to redeploy the assembly workers. They can setup a redeployment pool for those resources and try to redeploy them elsewhere in the company. However, if this is not possible, a business decision will have to be made to lay those workers off. The utmost sensitivity will be required as it is possible that generations of families have worked for the Swatch Group. The Swatch Group will need to carefully balance the outsourcing cost reduction possibilities with the social ramifications that may exist. Conclusion There are many issues facing the Swatch Group and there is no right way to solve any of the issues. Each issue comes laden with ethical and social consequences that will also impact the company. The Swatch Group will need to take steps to ensure that international integration does not cause domestic social disintegration. Regardless of how the issues are resolve, the greatest challenge is going to be finding the right balance between markets and societies. References Swatch and the Global Watch Industry