Unilever and Proctor Gamble Essay Sample free essay sample

A Frenchman named Henri Fayol ( 1841-1925 ) . although an applied scientist came up with a theory. He changed the ideas of concern disposal and sculpted a construction of direction that is practiced even now in this twenty-four hours and age by a huge figure of companies worldwide. This theory of his. now normally known as ‘The 14 rules of direction by Fayol’ is traveling to be applied in two mega-organisations such as Uniliver and Proctor A ; Gamble ( P A ; G ) : Proctor A ; Gamble and Unilever are two large transnational corporations that manufacture a big scope of consumer goods such as drinks. nutrient. personal attention merchandises. merchandises for the place. etc. The former is an American transnational corporation while the latter is a Dutch-British transnational corporation. In around 1997. Unilever decided that it was clip to get down populating up to its possible. The new aim to increase focal point and better consequences. unsurprisingly go a precedence. We will write a custom essay sample on Unilever and Proctor Gamble Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Clear way was set and it was agreed about nem con that the company should direct its focal point on specific undertakings and merchandises that mattered. For case. the sale of the chemicals concern in 1997. although considered as a really promising chance. if holding been allowed to stay in the portfolio would hold resulted in a divergence of managerial attending. labor. support. etc. This helped Unilever impart more of its clip and energy into their other merchandises as they didn’t have to worry about the chemical concern any longer. This and other such cases finally lead to a steep growing in the development for Unilever. In the 1990s. Unilever realized that it wasn’t developing and turning really fast – both in footings of net income and size. The head of the many jobs was that they focused a considerable sum of clip and energy on excessively many undertakings. most of which did non necessitate that much attending. Finally. Unilever realized that although th ey had the equal cognition and means to turn on a much faster and larger graduated table. non plenty was done to work the economic system to do a serious and desirable growing jet for them. A serious lacking of enterprise was merely but obvious. Although there was creativeness. there was no 1 to take up the wand and run with the thought. Inaugural doesn’t halt at the thought. What makes it count is when the thought blazes into a world through the flickers of executing. Since the start of the new century. thoughts were executed and the steady growing was inevitable. And to promote this. Unilever invested US $ 1 billion for the twelvemonth 2001 dedicated for the intent of research and development. It besides added an excess US $ 5. 7 billion for the selling of its merchandises. In an inspirational film Remember the Titans ( 2000 ) ; the manager of a high school American-football squad is faced with the undertaking of unifying his participants who are of both races. black and white. At that clip. due to the fortunes sing racism. to even believe of equity between the two antecedently mentioned races as a possibility would be madness. And to add to the coach’s mountain of a state of affairs. he needed credence into his squad as he was an African American. But one line that doesn’t fail to talk to the bosom of the spectator is when Coach Boone. standing on the same land where the Gettysburg Battle was fought. expresses the desire for his squad to develop the espirt de corps by shouting out these words to his squad. â€Å"If we don’t come together on this hallowed land. we excessively will be destroyed! † Equity and esprit de corps travel hand-in-hand. And Unilever. acknowledging that they were one of the most international companies in the universe. ensured that by first settling the fact that each individual was equal to another and cipher was higher than another by race. faith. sex or any other factor. Because without recognizing equity. people can non develop the espirt de corps which requires harmoniousness and integrity among people. Once Unilever had dealt with equality among the employees. it was easy to blend people into different squads and therefore bring forth greater consequences as different positions and positions were added to teamwork with the aid of different backgrounds. huge experiences and diverse civilizations from these employees. A really similar policy was followed and still is followed in P A ; G. P A ; G’s strive for regard to be shown throughout and on every degree of the company hopes to finally see a complete abolition of force. favoritism. subjugation. etc. and therefore finally develop the e sprit de corps for itself in harmoniousness and integrity. Many organisations consider the wage of its employees slightly of a delicate fuss. The existent battle lies in happening the right balance between working hours. benefits. committees and wages that will profit both the company and the employee. However. if this ‘balance’ is met. the opportunities of a company maintaining its employees run enormously high. In the instance of Unilever. they had made a program to maintain their employees every bit long as they perchance could. They started out by first choosing the right people for the occupation. By and large. these were people who showed high potency. Once the individual was selected. a good wage was given to him along with sensible working hours and plentifulness of benefits. This resulted in a steady turnover from the employees and a stableness of forces as employees were happy with their on the job conditions and didn’t feel the demand to happen work in new grazing lands. It was besides of benefit to Unilever as effectivity and overall consequences turned for the better of the organisation. By maintaining its employees. Unilever was really giving them much more experience in their peculiar field of work and besides heightening the opportunities of publicity within the company instead than outside engaging which normally turns out to be a more expensive and drawn-out procedure. P A ; G by and large has the lesser sum of jobs when it comes to wage and stableness of its employees. As the employees are introduced into the company after seminars. development plans and leisure trips to the U. K. and Ireland. a comfort zone is unwittingly built for them. They are besides given particular attending and are made to go to several classs on the debut and operation of P A ; G. Besides a heavy wage. employees are awarded immense inducements and fillips for finishing undertakings. Incentives are given to three classs of productiveness: top performing artists ( those who perform much better than the set mark ) . cardinal subscribers ( those who perform what they were asked ) and those who perform below the mark set for them. The company sets its wage on the same degrees as that of other major worldwide companies but chooses to present high fillips to promote its employees to avoid absenteeism and slack in productiveness. In 2001. Unilever found the demand to split work . after the procurance of top companies such as Bestfoods and Slimfast. These new methods of direction split the focal point from a really general position to a specific manner of direction. A separate section was set up to overlook the proceedings for nutrient and another was set up to make the same for homo and personal attention. Each section had its ain research squad and concern squad. Hence. different marks were set for each section so that each section would endeavor for excellence through a monolithic encouragement to its invention and quicker determination devising. which would ensue in a quickening in the execution of those determinations. Unilever. with its long-run attack to direction and growing. found that it is better for an person to travel from one runing company to another ( within Unilever ) so as to acquire the maximal experience he perchance can and to broaden his position on direction itself. Although this may look to be as a mark of uncertainness and unrest in the short-run. in the long tally this is a policy has proven dramatic consequences as directors return back to the first subdivision as senior directors and company function theoretical accounts. Puting the general good of the company foremost means puting the organisational aim as precedence over the personal end. This doesn’t imply that the personal aims of the employee are to be cr ushed and that they are to make merely as the company orders. What this really means is that even though every employee has his/her ain ground for fall ining the peculiar company. imparting those grounds in such a manner that it is good to the company and to the employee is what is desirable. P A ; G allows its employees to take drawn-out holiday interruptions and work lesser hours a hebdomad but on a status that when the employees are working. there is a 100 % productiveness and effectivity from their portion. Even though it may look as a though P A ; G is losing clip because its employees are working less compared to those in other companies. it is really the solution to their high productiveness rates. When it comes to ‘calling the shots’ . the people in higher places with the greater authorization make the determinations. Authority is the right to give orders and to obtain obeisance. There are chiefly two ways in through which these determinations are taken: centralisation or decentalisation. Most organisations use a mixture of both systems. Centralization is when the determinations are made at the caput of the house. Although considered as parent companies. both Unilever N. V. ( Netherlands ) and Unilever plc. ( U. K. ) operate a batch as a individual entity. A commission of seven members. led by the presidents of both subdivisions in Netherlands and the U. K. are responsible for strategically taking the other smaller subdivisions around the universe. Ever since the 1970s. Unilever had been following such a construction. Although this may look the best manner to travel about doing determinations. it is really a very clip consuming and energy disbursement method. And because of this centralisation. there was a monolithic failure when Unilever wanted to unify with other companies. Ever since 2005. the determination to deconcentrate power has proven to be the right measure frontward. Even though this is a long procedure that can non be done nightlong. and is still in the procedure of being wholly realized. the benefits of this alteration are bearing fruit for Unilever. However. the scalar concatenation is still being respected in Unilever. This means that the higher up the concatenation the individual is. the more authorization and duty is g ranted to him. It besides ensures that every individual still has a foreman to describe to. As famously said by Uncle Ben to the chief character Peter Parker portrayed by Tobey Maguire in the action film Spiderman ( 2001 ) . â€Å"With great power comes great duty! † so does the same apply to direction. If a individual has authorization over another. so he is besides responsible for the development of that subsidiary. Besides if a individual has a foreman. so no 1 else is allowed to give him instructions that change the initial direction given to him by his ain foreman. This means that there must be some kind of integrity in bid when it comes to teaching a individual. A individual can non hold two different higher-ups giving him instructions over one same affair. This will take to heavy contradictions and confusion among the subsidiaries. Decentralization is the sort of order that runs in P A ; G. Employees. unlike those in Unilever are allowed to do certain determinations within their boundaries drawn out to them. They are given much more authorization but besides on their home bases. come a batch more duty. Despite P A ; G being an exceptionally big administration. the communicating that appears to be taking topographic point between directors and employees is surprisingly really informal and societal. Even though formal meetings. are held between a director and his subsidiary. in P A ; G a d ifferent type of communicating is noticed. Here the senior director is allowed to speak to a junior employee anytime he feels like even to the extent that a insouciant tiffin is allowable and frequent. In add-on to that. employees are encouraged to subject suggestions on a quarterly footing to the HR section where so an one-year elaborate feedback is forwarded to the director based on the suggestions and ailments sent in by his employees. Discipline from Employees can non be overlooked. To obey the regulations and ordinances set by the administration requires non merely subjecting subsidiaries but besides good higher-ups at all grades. The same disciplinary guidelines are followed at P A ; G and Unilever. where employees are expected to work with unity. in all honestness and with the extreme regard for their colleges and clients. Recently the criterions of relationships between people both inside and outside the company have been raised. Malpractice. fraud. payoff. etc. of any degree does non have any kind of amusement whatsoever. Before fall ining the company. each and every employee is warned that there are terrible penalties that come with such patterns. Overall. there isn’t much of a difference between both Unilever and P A ; G as both of them run about the same sort of concern. They both trade with so many merchandises and hence drama immense functions in the planetary market when it comes to merchandises like theirs. That is why they have so many similarities when it comes to train and equity. They besides see each other as competition and the competition between the two has surely caused the two to hold some differences in direction manners like the concatenation of bid and order. wage and stableness of its employees. Mentions 1 ) How Procter and Gamble Survived Through Innovation – A Case Study – a knol by Osman Masahudu Gunu. 2011. How Procter and Gamble Survived Through Innovation – A Case Study – a knol by Osman Masahudu Gunu. [ ONLINE ] Available at: hypertext transfer protocol: //knol. Google. com/k/how-procter-and-gamble-survived-through-innovation-a-case-study # . [ Accessed 12 November 2011 ] . 2 ) Unilever planetary company web site. 2011. Unilever planetary company web site. [ ONLINE ] Available at: hypertext transfer protocol: //www. unilever. com/ . [ Accessed 12 November 2011 ] . 3 ) PG. com Home: sustainability. company. trade names. 2011. PG. com Home: sustainability. company. trade names. [ ONLINE ] Available at: hypertext transfer protocol: //www. pg. com/en_US/index. shtml. [ Accessed 12 November 2011 ] . 4 ) 14 Principles of Management of Henri Fayol. . 2011. 14 Principles of Management of Henri Fayol. . [ ONLINE ] Available at: hypertext transfer protocol: / /www. citehr. com/137134-14-principles-management-henri-fayol. hypertext markup language. [ Accessed 12 November 2011 ] . 5 ) National Council Of Educational Research And Training: : Home. 2011. National Council Of Educational Research And Training: : Home. [ ONLINE ] Available at: hypertext transfer protocol: //ncert. nic. in/NCERTS/textbook/textbook. htm? lebs1=2-8. [ Accessed 12 November 2011 ]

NHC The Importance of a Human Resource Manager

NHC The Importance of a Human Resource Manager In a poor community one of the most important things to have is a health facility. Health is wealth as the saying goes, a simple statement but true. A successful career and all the material wealth that comes with it is incomparable to health. But poverty provides barriers for those who are not insured and could not afford to pay the fees of a medical doctor or avail of the health services of a private clinic.Advertising We will write a custom case study sample on NHC: The Importance of a Human Resource Manager specifically for you for only $16.05 $11/page Learn More Thus, in poor places like North Suburbia it is imperative to maintain the Neighborhood health clinic (NHC). However, the NCH is plague with monetary and employee-related problems. There are many solutions that NHC leaders can consider but it can be argued that hiring a competent human resource manager is the most effective solution that can create an immediate positive effect. The Trouble at NHC There was a time when North Suburbia was an attractive place to live. Due to an economic boom in the 1980s, Caucasians, African-Americans, and Hispanics began to replace the American-Indians that used to dominate the region. After a while, and because of significant shifts in the economic climate of the place, African-Americans became the majority. However, this trend did not last for long because high cost of living and expensive housing drove many away and the vacuum left was soon filled in by Hispanics. The only common denominator is that most of the residents are poor regardless of their ethnic background. Poverty easily creates a chain reaction of negative effects. The workload increases but the patients that come to NHC cannot afford to pay the bills. The NHC cannot run on good will and compassion alone. It must have a steady cash flow in order to buy medicines, purchase necessary equipment and pay for the wages of the health workers. Thus, the members of the board and top lea ders of NHC must also divide their time to not only manage the facility but also to raise funds for the health center. But aside from the lack of funds other pressing concerns threatens to shut down the NHC. There is a culture and communication issue. There is a need to have equal representation in terms of ethnic composition of the work force.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More If NHC fails to attract African-American workers then the members of the black community would not be encouraged to use the services of the said facility, thinking that the place is run by Hispanics. If the situation is reversed the same thing will happen to the sentiments of the Spanish-speaking members of North Suburbia, they too will feel uncomfortable in availing the services of the NHC. The most sought after members of the community that should work in the health center are African-A mericans; however, they are some of the most unreliable groups of workers that can be found at NHC. These are undependable workers because they are the byproduct of an environment struggling with a high crime rate, gangs, and drug use. According to one health officer: â€Å"some potential employees also had criminal records, were recovering from problems with substance abuse or had complicated family issues that could potentially interfere with their work schedules† (Denend, 2005, p.65). The situation calls for an expert in human resource management. It is of great importance to upgrade the workforce and the leadership core of NHC, nevertheless, â€Å"despite the tremendous need for training, NHC had been limited in the amount of time and money it devoted to staff development† (Denend, 2005, p.65). There must be continuous training to update the skills of the health workers. At the same time it is also crucial to bring them to a level of maturity and confidence in orde r to minimize the risk of errors. Most Effective Solution At first glance the root cause of the problem is poverty and the lack of funds. But in truth these are social issues that NHC must not focus on. Surely it is important to increase the earning capacity of the members of the community but the main task of NHC is not to stimulate the economic recovery of the said region. At first glance it seems that members of the board must work harder when it comes to fund-raising endeavors. But weighing all the problems there is one action that can address a major portion of the issues. The leaders must put their heads together to attract and hire a competent human resources manager.Advertising We will write a custom case study sample on NHC: The Importance of a Human Resource Manager specifically for you for only $16.05 $11/page Learn More The core problem was echoed by one employee who said, â€Å"There’s no HR here, so everything goes to management† (Denend, 2005, p.66). Imagine the confusion and the burden carried by the officials of NHC when they try to put out fires without solving the root cause of the troubles that they face. They have to realize quickly that even if they raise funds, the money will be wasted on hiring the wrong people and the added cost of errors in the workplace, not to mention work-related violence, can close down the NHC. Members of the board must remember that there is a close connection between employee performance and customer satisfaction (Buttle, 2004). This is the domain of an HR manager. They are able to deal with an assortment of employment problems. The first order of business is to develop the correct strategies in order to hire the right personnel. It is therefore imperative to hire a competent HR manager because the HR department acts like a filter that will sift through the application data, in order to choose the right candidate for the task at hand. It is important to realize that recru itment processes and strategies must be enhanced to adapt to the challenges faced by the community (Buttle, 2004, p.9). The HR manager must learn to use information to be able to predict to a certain degree that an applicant possess the right characteristics suited for the job. A competent HR manager possesses the right qualification to provide the necessary training for the employees. A competent HR manager also understands the ethical issues that are in existence. Therefore, the hiring process as well as the methodologies used for training the employees must be carefully studied so that there would be no complaints from the community. Nevertheless, it is not enough to hire the right people and train them; an effective motivation program must also exist.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More HR managers know the value of motivation and the need for employees to work at the highest levels. They are aware that motivation enables health workers to strive for a higher standard of service excellence (Moynihan Pandey, 2007, p.803). HR managers are trained to develop and maintain a system of monitoring in order to determine the performance of the members of the staff. They know how to detect a significant drop in performance levels and when that occurs a competent HR manager is also capable of raising-up the standards once again. HR managers must work closely with the management team at NHC to pinpoint proven methods of motivation so that it will meet changes in the community and at the same time inspire the workforce (Boella Goss-Turner, 2005, p.42). The members of the board and other managers are focused on the medical aspect of the health center and can easily neglect the needs of the workers. The need to motivate employees is imperative in every form of business but in t he case of NHC it is a matter of life and death. It is not just about profit but the survival of the community. Without a reliable workforce, the health center will be forced to shut down. Motivation is the key but it is not a byproduct of wishful thinking, it is the result of careful planning. It requires specific knowledge and experience on how to manage the human resources aspect of the NHC. Conclusion It is easy to understand why the members of the board focused on raising funds. Without a sustainable source of income the NHC can close down in a year or two. However, a focus on the monetary aspect of the problem will never solve most of the issues because at the core of the problem is the lack of management expertise, especially in the area of human resource management. Even if the said facility has access to money, the current crop of employees are unable to maximize it to help those in need. Tardiness, errors in the workplace and unsatisfactory service easily defeat the purpos e of the NHC. The goal is to help people and therefore aside from the need to purchase medicines and equipment it is imperative to have well-trained and well-motivated health workers doing their job. The most important step is to hire a competent HR manager in order to increase the efficiency of the NHC and reduce its overhead costs so that the funds can be stretched even further to provide service for those who are desperately in need of medical care. References Boella, M. Goss-Turner, S. (2005). Human Resource Management. Oxford: Butterworth-Heinemann. Buttle, F. (2004). Customer Relationship Management. Oxford: Butterworth-Heinemann. Denend, L. (2005). Neighborhood Health Clinic: Serving the Underserved in a Complex Environment. CA: Stanford Graduate School of Business. Moynihan, D. S. Pandey. (2007). Finding Workable Levers Over Work Motivation: Comparing Satisfaction, Job Involvement, and Organizational Commitment. Administration and Society, 39(7), 803-832.

Kingfisher patisseries goes international Essay

Kingfisher patisseries goes international - Essay Example ed offers from Singaporean and Korean food processors because of Patrick’s limited knowledge of those markets as well as ambiguous regulations that governed the import and sale of food products in those countries (Kotler, 2007). This should have served as an example for Patrick and Kingfisher into not entering into markets about which they know little about. This issue raises questions about client-supplier relationships and as shown in the case, all recipients from the suppliers cannot be relied upon to act in good faith or show compliance with local regulations that are in place in the countries in which they operate. Further, Denzo Gato cannot be excused of negligence or ignorance about the local regulations as he is expected to fully comply with the same. Taking all these factors into consideration, the conclusion is that Kingfisher should not have entered into contractual obligations with Denzo Gato. As the case shows, Kingfisher lost out on the contract as well as suffered monetary losses as well. Q2) In my opinion, Denzo Gato was not a good choice for Kingfisher in terms of compatibility. First, Denzo Gato operates in what is known as the â€Å"grey area† between complying with regulations in the letter of the law and the spirit of the law. Denzo Gato does not fully comply with the regulations and operates in between the relevant laws. The case illustrates the fact that Denzo Gato was a large chain that covered the supermarkets as well as four star hotels. However, this means that Kingfisher is not compatible with Denzo Gato in terms of size or scale of operation (Hartman, 1995). The other aspect of incompatibility is because of the technological gap that exists between Kingfisher’s operations and that of Denzo Gato. There is a clear instance of Kingfisher not being technologically compatible with that of Denzo Gato. The case shows the instances where Denzo Gato had to repeatedly ask Kingfisher to upgrade its manufacturing processes and align them

Answering 2 questions Assignment Example | Topics and Well Written Essays - 250 words

Answering 2 questions - Assignment Example My personal contributions will aim at fulfilling some holes in the research topic by bringing in ideas that seek to affirm contentious issues in the topic. I believe that I will be able to offer sufficient support for my claims as well as highlighting the myths and misconceptions surrounding the topic. I think the final choices of peers are valid as they can form the basis for a credible research topic. In relation my selected topic, I have seen many things that may alter my view of the subject. First of all, television commercial are not only based in emotions as I had earlier stated but they are also based on some known facts. They not only appeal to our emotions but some of them are based on things that we cannot do without and as a result, the advertisements are just a matter of conveying the information and not appealing for convince us through emotional approach. I have discovered that logos can also be applied in commercials by stating the logic behind the need to consume some products. According to the definition of research as depicted in the lecture notes, it is about creation of a topic and not just writing on the topic. This means that one must come up with new ideas and strategies that have never been handled conclusively and the debate on them rages on. This is a new insight to me as far as research writing is concerned. I will now focus more on the coming up with new ideas as opposed to the ones already known and proved. By taking this approach, I will be able to write one of the best papers and fill all the knowledge gaps in my research

Emergence Of Neoliberal Development Theory Economics Essay

Emergence Of Neoliberal Development Theory Economics Essay Introduction This essay aims to justify the emergence of neoliberal development theory by analysing the historical, political and economic backgrounds in the second half of the twentieth century and identify the key features of its success. Also, the essay aims to establish the reasons behind the failure of the Keynesian model that was dominant prior to the neoliberal theory. Firstly, it will define development, outline its origins and goals and look back at the history of development to identify major theories prevailing in global economics. Secondly, it will account for the transition from the Keynesianism to neoliberal theory and argue that the main drawback of the former extensive state intervention in economics was the reason behind the rise of the latter. Finally, it will analyse the neoliberal development theory in terms of its strengths and weaknesses and conclude with suggesting perspectives of the theory in the future. What is development? Development presents an elusive concept to define. As the term itself is incredibly broad, the simplest definition of Good Change (Chambers 1997) will not suffice: factors such as time, perspective and focus should be considered to encompass the term (Thomas 2000). Development does not happen overnight, therefore, to understand it we need to look at a series of changes throughout history and the inevitable processes which accompany it. Secondly, understanding of development shifts depending on the vision or perspective of what development aims to achieve (modern society, maximum use of human potential or fixing the faults of progress). Finally, development could be seen as a focused effort to eradicate a problem (i.e. poverty, hunger, AIDS, etc.). Generally, development is summarised as a process of developing countries trying to catch up with developed countries (Kiely 2007). If we look at the current goals in development outlined by the Organisation for Economic Cooperation and Development (OECD), we can see that in developing countries by 2015: Extreme poverty should be reduced by one half. Universal primary education should be ensured and gender disparity in education eliminated. Infant/child mortality should be reduced by two thirds and maternal mortality by three quarters. National strategies for sustainable development should be implemented (OECD 1996). On the surface these goals appear to tackle social problems (quality of life and education) but they are deeply intertwined with both politics and economics. In order to achieve those state leaders need to work along with international organisations whose economic expertise can help to shape needed policies. No matter how noble these aspirations sound, it is the question whether they are realistic enough to implement that we should ask ourselves. It is possible to assess the chances of success better by looking back at the history of development and its former achievements. The modern history of development begins with the end of the Second World War in 1945 when new states emerged and the old international order was reshaped. The key theme in development was expanding the economic growth through industrialisation. The unique position of the USA after the war (minimal losses) facilitated its becoming a super power. Not only did it have an exceptional political influence in the international affairs but it also helped to promote capitalism and democratic values in Europe as well as the developing countries. The USA did this not only through foreign aid and direct investment but creating such international organisations as the UN, the IMF and the World Bank. The Cold War split the world into two camps: capitalist and communist. While the superpowers were trying to win more political influence, they also helped to modernise developing countries by boosting their economies. Of course, it came with a price joining a camp of the donors. The USA supported national liberation of the colonies and promoted development of anti-communist ex-colonies. This period from 1950s to 1970s is also known as the golden age of capitalism. High rates of profit facilitated high rates of capital accumulation and unprecedented economic growth, high productivity, high wages, expanding demand (Kiely 2007). Such growth resulted in full employment, creation of welfare system and a spread of globalisation. However, by the 1970s problems with the system became obvious: states had monopolized important industries (coal, steel) which limited the capacity of economic growth, thus investment was dominated by political not economic reasons. Preston argues that there was an assumption that states have the right to intervene directly in production and distribution (Preston 1996: p. 154-156). This resulted in capital not being allowed to cross borders without government approval, so states could set domestic interest rates, fix the exchange rate, tax and spend as they wanted to secure national economic objectives, moreover, the divide between developed and developing countries remained high (Leys 1996). The decline in profit rates recorded in the developed countries at the end of the 1960s deepened and in the 1970s spread into an open capitalist crisis, characterized by a swing of the whole system into monetary-financial chaos, exploding inequalities, and mass unemployment (Herrera 2006). The Keynesian model The golden age of capitalism was dominated by the Keynesian development model, which maintains that the level of economic activity is determined by the level of aggregate demand (Palley 2004). John Maynard Keynes, the forefather of modern macroeconomics, argued that if markets were depoliticised, completely free from the intervention of governments, it would cause a period of economic depression and financial crisis. In order to prevent such a downfall he suggested that governments should control fiscal and monetary policies. Within this theory unemployment could be explained through weakness in the aggregate demand generation process that capitalist economies are subject to. In the aftermath of the post war period it was this particular model that allowed states to rebuild and boost economies. A weak point, however, was the so-called spending ratchet governments provided additional support for workers during hard times but it was politically difficult to take them away during a booming economy. Therefore, the rate of economic growth slowed down and the risk of inflation rose. This was not the only problem with the Keynesianism. According to Palley (2004) there existed two sub-theories about income distribution: one originating in the USA, the other in the UK. American Keynesians advocated the neoliberal paid what you are worth theory of income distribution, while British Keynesians argue that income distribution depends significantly on institutional factors. Palley then explains it in detail: It meant that not only do a factors relative scarcity and productivity matter, but so too does its bargaining power, which is impacted by institutional arrangements. This explains the significance of trade unions, laws governing minimum wages, employee rights at work, and systems of social protection such as unemployment insurance. Finally, public understandings of the economy also matter, since a public that views the economy through a bargaining power lens will have greater political sympathies for trade unions and institutions of social protection (Palley 2004: 2 ). In essence the two schools differed in their understanding of the factors involved in (simply put) wages and income. For example an American Keynesian, would view an employees bargaining power in wage negotiations as entirely dependent on demand for the employees skills, its relative scarcity and the employers ability to pay. The British view in however would encompass such additional factors as unions (in the case of employment) enforcing collective bargaining or national minimum wage structures. The British view therefore contained a more realistic accounting of income distribution versus a more pure capitalist view. One of the major factors of the transition from the Keynesianism to neoliberalism was the unstable prices for petrol in the OPEC in the 1970s. Another factor is of social nature the USA has promoted individualism that rejected the communist collective economic approach and kindled the debates in favour of free markets not controlled by the government. Combined with the divide between the train of Keynesian thought in the UK and the USA the theory slowly started to be replaced with neoliberalism. What is neoliberal development theory? Like development neoliberalism is a disputed notion. This term could be attributed to describe a theory of International Relations, an ideology, a development theory or economic theory. To avoid confusion we suggest a definition by Harvey: Neoliberalism  is  a  theory  of  political  economic  practices that proposes that human well being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong property rights, free markets and free trade. The role of the state is to create and preserve an institutional framework  appropriate to such practices (Harvey, 2005: 2). Neoliberal development theory has emerged in 1970s with the end of the golden age of capitalism. As the world economy was entering a recession, old strategies ceased to work and neoliberalism claimed to provide tools to overcome the financial crisis. The core of the theory lied in an assumption that bad policies were rooted in extensive governmental intervention in economics. Economic growth could be restored by policies ensuring competitiveness in the world economy. Neoliberal development theory aimed to enhance growth, create free markets, replace the Keynesianism that proved to be weak, and eliminate the intervention of the state in the economy that resulted in poor economic performance in many countries (Harrison, 2005). This approach was adopted by major international organisations such as the IMF and the World Bank which made the transition faster. This theory accumulated popularity as the USSR economic growth began to slow down in the 1980s and with the collapse of the Soviet Union, capitalism had proven to be a superior political-economic system to those that had  been its alternatives (Flew 2012). In order to understand what neoliberalism could offer that the Keynesianism could not Herrera (2006) splits the neoliberal strategies into domestic and international ones. They are both aimed at ensuring that the USA sustains and develops its hegemony. Firstly, at the national level, implementing the government control free economy by: (1) deforming the structure of capital ownership to the benefit of the private sector, (2) reducing public spending for social purposes, and (3) imposing wage austerity as a key priority in fighting inflation. Then, to internationally maintain the dominance of the American dollar with the help of the major international organisations and to promote free trade. This argument is in line with the Washington Consensus development strategies which included fiscal discipline, keeping inflation under control, welcoming foreign trade and investment, reducing the role of the government in general, and promoting new exports (Skidmore and Smith, 2005: 59). As com plementary to these goals, the Consensus also advocated tax reform including cutting marginal tax rates (reducing taxes for the rich), creating a unified and competitive exchange rate, and securing property rights (particularly for foreigners in developing countries) (Todaro and Smith, 2006: 538). During the last 30 years this objective has resulted in the proliferation of neoliberal policies of deregulation, privatisation and marketisation (Cahill 2010). When portraying neoliberalism it is paramount to mention the basic principle of individualism. Neoliberalism implies that at the very heart of the concept lies the uniqueness of an individual that leads to subjective and self-centred preferences. Cahill (2010) argues that neoliberals base the defence of free markets on this: liberty is depicted as a core aim of society in which markets represent spheres of voluntary exchanges between individuals. Based on the assumption that from rational point of view individuals would only engage in an exchange that was beneficial for them, markets allow them to satisfy preferences free from external interference or coercion. This way markets represent an excellent platform for spreading liberty. From the economic point of view free markets, with voluntary exchange at their core, let the preferences of rational self interested utility maximisers to be expressed and satisfied. In this case prices represent markers of such preferences and along with the freedom of choice ensure that resource allocation is subject to the preferences. Such system leads to the claim of neoliberals that are not only moral but efficient means for producing and distributing goods and services. Freed from governmental involvement markets produce better results unlike when being under state control with politicians inevitably choosing one industry over another. It appears that better results could be achieved with a shift from the public to the private sector. Strengths/weaknesses In order to establish if the transition to the neoliberal development theory was successful it is necessary to go back to the goals that the theory proponents wanted to achieve: free trade, economic growth, liberalisation, depoliticising of economics and privatisation. While there is evidence that free trade facilitated economic growth it has been slower than expected and still connected with state intervention: there is a positive correlation between an economys exposure to international trade and the size of its government in the years from the 1960s to the 1990s (Rodrik 1998) and similarly whereas levels of trade and levels of government expenditure are positively correlated, countries in which trade has increased more quickly in recent decades have experienced slower growth in government spending (Garett 2001). At the same time free trade and liberalisation has facilitated the emergence and development of globalisation opening new prospects of integration in the international economics and society. On the other hand, globalisation has its own drawbacks, especially in regards to developing countries they still have to catch up with more advanced states but the competition is a lot higher. Without modern technologies which are too expensive, tight budgets and a lack of mass production capability the developing countries, for example in sub-Saharan Africa, remain behind the western states or BRIC countries. Moreover, they have not achieved political freedom either the international organizations call on national governments to adopt neoliberal economic policies imposed from without while the globalized financial markets dispossess these states of their sovereignty and foreign core capital insinuates itself into the periphery countries capitalist ownership structure (Herrera 2006: 5). Promoting democracy and liberalisation could mask more egoistic than altruistic reasons. Neoliberal reforms concentrate on achieving them at the expense of other important factors of development, such as environmental protection, human rights and most important elimination of global absolute poverty (Todaro and Smith, 2006: 548). Conclusions and considerations Summing up the explanation of the emergence of the neoliberal development theory we argue that although the theory has proven to be flawed, nevertheless, its world domination is justified and it is likely to continue its course in the future. While the Keynesian model was efficient during the post-war period and helped to rebuild the economy, it could not provide the international community with the tools they needed to overcome the financial recession in the 1970s. The state-controlled economics framework could not accept and embrace the free market and privatisation because it would mean losing a substantial part of political influence for the governments. Therefore, neoliberalism was the rational choice to adopt in order to revive the economy. As the major superpower (and after the end of the Cold War the unitary) the USA hegemony started to spread further the IMF, the World Bank and other international institutions promoted the development of neoliberalism in both developed and developing countries. Neoliberals believed that markets are able to manage and distribute capital better than states. For the developing countries it also meant more options for employment by expanding the output of exports. Conversely, the emergence, development and finally establishment of the neoliberal development theory as the dominant one has created a number of issues that are complicated to resolve: the widening gap between the rich and the poor, the slowdown of the economic growth and the recession. Promoting democracy and liberal values often hide states own interest, i.e. the war in Iraq in 2003, recent interventions in Syria and Libya. Although economy has become less state-oriented the goals of multinational corporations do not comprise of reducing poverty and inequality as their primary objective. In order to sustain the neoliberal model, it should be re-developed to provide better social security, lessen inequality and poverty, pay greater attention to human rights and create truly independent and unbiased institutions. Only then the 2015 goals of development could be achieved.

Inner City

1. Financial Ratios— †¢Liquidity Ratio: measure the availability of cash to pay debt. Current Ratio = Current assets/ Current Liabilities 262,515/ 285,030= 0. 92 There is a problem meeting its short term obligations The best way to improve this ratio and better position the business to cover its short-term obligations is to better manage current liabilities (accounts payables).Generate more profit (cash) out of each sale by increasing profit (as long as it is competitive within the industry), reducing costs of goods sold (making the product with less cost or providing services with less costs) or finding efficiencies throughout the operating cycle. †¢Asset Management Ratio: indicate how successfully a company is utilizing its assets to generate revenues. Inventory Turnover= COGS/ Average inventory 1,428,730/ 18,660= 76. 57 Indicate a shortage or inadequate inventory levels, which may lead to a loss in business.Average days to sell the inventory= 365 days/ inventory t urnover ratio 365/ 76. 57= 4. 8 Measure of the number of times inventory is sold or used in a time period (a year). A low turnover rate might point to overstocking, obsolescence, or deficiencies in the product line or marketing effort. On the other hand, a high turnover rate might indicate inadequate inventory levels, which can lead to a loss in business, as the inventory is too low (stock shortages). Receivables Turnover= Sales/ Accounts Receivable 1,784,080/ 242,320= 7. 36 A low ratio implies the company should re-assess its credit policies in order o ensure the timely collection of imparted credit that is not earning interest for the firm. Days Receivable= 365/ Receivables Turnover 365/7. 36= 49. 6= 50 The receivables turnover ratio is used to calculate how well a company is managing their receivables. Total assets turnover= Net Sales Revenue/ Average Total Assets 1,784,080/ 294,565= 6. 06 Measures the efficiency of a Co. use of its assets in generating sales revenue. Companies w ith low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Debt Management Ratio: measure the firm's use of Financial Leverage and ability to avoid financial distress in the long run. The use of debt can improve returns to stockholders in good years and increase their losses in bad years. Debt Ratio= Total Liabilities (Total Debt)/ Total Assets (285,030+ 15,000)/ 294,565= 1. 02 All assets are financed by creditors and some losses are covered by creditors. Indicates the proportion of a company's debt to its total assets. It shows how much the company relies on debt to finance assets. The higher the ratio, the greater the risk associated with the firm's operation.A low debt ratio indicates conservative financing with an opportunity to borrow in the future at no significant risk. †¢Profitability Ratio: represents the % of total sales that Co. retains after incurring the direct costs (variable costs) associated with produc ing the goods sold. Return on Assets= Net Income/ Average Assets 17,610/ 294,565= 5. 98% Indicates that the company is asset heavy. Net Profit Margin= Net Income/ Sales Revenue 17,610/ 1,784,080= 0. 987% A high percentage of each dollar generated by the company in revenue is actual profit Gross Profit Margin= 1,784,080-1,428,730)/ 1,784,080= . 20% Indicates that gross margin isn’t large enough to cover other expenses beyond cost of goods sold. Purpose of margins is to determine the value of incremental sales, and to guide pricing and promotion decision. Understanding and monitoring gross margins can help business owners avoid pricing problems, losing money on sales, and ultimately stay in business. Helps avoid offering prices that are too low or have costs that are too high to ultimately make a profit. 2. Strengths, Weaknesses, Opportunities, and Threats— †¢Strengths: Fast Service/ delivery- supplied paint to contractors within 24 hours, -Steady growth in its mark et, -Competitive price, -Cheap rent/ low overhead costs- gives a competitive advantage, -Cheap employee wages- nonunion organization, -Low production costs- low cost and high quality paint, -Excess capacity †¢Weaknesses: -Unorganized- operating with no management or financial controls, -Lack of consistent and reliable inventory control system, -No customer record (manual count): wastes too much time, -No office space, no billing records, no shipping information -Undesirable ocation and building is in poor condition: old plant, and old equipment (dusty, dirty environment) -No sales personnel, -No computer, no database, -Inexperienced/ unskilled employees, -Lack of delegation and employee empowerment -Narrow product line, -Bad cash flow: insufficient financial resources to fund any changes, -Culture, -Lack of customer confidence: customer perception as a company that negotiates price and unreliable to fill large orders. -Lag between time when they are paying their suppliers and e mployees versus time it takes to collect receivables from customers (30-60 days) †¢Opportunities: Expand product range: go after different segments, -Purchasing a computer to organize data and reduce needless paperwork, -Increase market share by taking large orders, -Hiring professional salesmen to ensure consistent growth and accountants/ consultants to identify problems and solutions: Lower cost of goods sold, lower expenses due to Walsh’s salary, and lower bad debt. †¢Threats: -Market is in slow growth- housing market and overall economy, -High bargaining power of suppliers -High threat of substitutes: larger Co are more reliable Threat of new entrants,low entry barriers in paint manufacturing industry -Rumors that company is in difficult financial straits- unable to pay suppliers and owes a lot for payment on previous taxes, -No audit has been performed= IRS penalties: Wash did not include his income taxes in his income statement; he owes $38,510 in taxes. 3. Re commendations— Within 30 Days: †¢Pay his taxes before he gets audited †¢Collect bad debt from clients †¢Hire personnel to assist in various tasks -Salesmen and accounting managers †¢Grow business and solve current financial problems Within 90 Days: Inner City Paint should keep records of inventory, finances, billing info. -They should invest in a computer and keep all records in a database to automatically calculate changes. †¢Take a cut in high salaries †¢Find and research new suppliers -To be able to provide timely delivery for large orders †¢Minimize COGS Beyond 90 Days: †¢Buy more equipment and trucks †¢Improve management skills and create policies †¢Earn business of larger clients †¢Manage business and growth of the company and to be able to acquire companies in the future that help attaining a larger market share.

Interoffice Memorandum Essay

In recent months, the Roanoke office has had complaints from four clients. Customer satisfaction is declining; this is partly due to low morale among the branch’s employees. It has come to my attention that some of the graphic designers and art directors feel that their ideas are not being taken seriously. All the while, employees are work longer hours without proper compensation. We must give our immediate attention to this situation as Roanoke handles some of our biggest clients. We must also be sure the employees we hire are being treated as part of a team. As an executive team, it is very important to reach out to the Roanoke branch to find out the root of the problem before the entire company is affected. Here is my proposed plan of communication with the branch: †¢ Zachary Sylvan – Speak with Roanoke’s clients to see if they can give any feedback as far as trends they might be seeing in the branch’s operations. †¢ Al Gucciardo – Speak with the Public Relations department employees and get their feedback †¢ Troy Richards – Speak with the marketing department employees for their feedback †¢ Devi Dewdat– Speak with the advertising department employees for their feedback Please put together a report from each person you speak with by July 31, 2014. I will meet with Michelle Garner, the HR director of the Roanoke branch to discuss the issues. We will then hold an executive meeting to discuss the status of the branch and what changes need to be considered. Thank you in advance for all your time. This is a very critical time for the Roanoke branch and the company as a whole. As previously discussed in our last meeting, we need to communicate with the employees at your branch about their concerns due to the longer hours they have been required to work recently. Please provide the payroll statement for the branch for the past 12 months. These will help the executive team analyze how the employees’ time is being managed to see where management might be falling short. This is a very critical time for the Roanoke branch. We must work together to end to the low morale that seems to have taken over the office. With that, please make that getting these statements your top priority today. I will be traveling to the branch on Thursday, July 31 to go over them. Please keep in mind that we will be approaching this situation at all angles and we can discuss some ideas on how to improve employee morale overall at our meeting.