Research Korner

Bench Marketing

USA World Bank, UWB, is an international major bank, with branches across the country as well as in several locations worldwide. The company has a large consumer base including small business organizations. UWB has been so far successful in its ventures and has already positioned itself in the market.             Being an international major bank with a reputation, UWB has an opportunity to further expand its market through different strategies. To address this issue, every year, like most companies do, UWB launches a new product to increase its market share. The new product needs to be profitable and something that will excite customers and an advantage to every sector of the market. During the past years, the products that the company had launched were just marginally successful and the board members of the company are demanding for some winning products. The most significant challenge now is to launch and develop new product that will definitely be successful and profitable for the company. However, there are some problems that hinder the company to overcome this challenge. The focus of this paper is to identify these problems and to identify business practices such as benchmarking that seems to be the solution to the problems base on other existing companies today to determine the usefulness of such practices. The paper aims to present the importance of benchmarking and how it can help a business firm such as UWB.             USA World Bank, for the past years, has not been very successful with its launched products. The past several initiatives of the New Product Development President have been only marginally successful. This year, the new product development team is obliged and pressured by the board of directors to launch and develop a winning product to be able for the company to achieve its goal of further increasing its market share. The team president initiated the Instant Reward Card, a card which is basically a credit card where customers can earn rewards from their purchases with the card and is comparable with a business credit card with discounted interest rates.   In the scenario, it was mentioned that the idea was formulated based on what the bank presidents and personal bakers hears. As stated in the scenario, ‘bank presidents and the personal bankers have their ears to the ground’. This is one of the problems of UWB, having no system or standards of gathering ideas in product development. With the instant reward card, the team had based the idea on hearsay. They initiated the idea and proposed it without establishing clear understanding if that is the product that the customers really needed and wanted.   Aside from that, the company has no standard methodology used when conducting research. Research is a very necessary tool for the company to establish facts especially when creating new products. According to American Marketing Association, marketing research is the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services (SBA, 2006). Research gives a company a view on the potential of the product to be developed based on the potential market, the size of the market, or the marketing strategy to be used to effectively promote the product. Market research will also identify trends that affect sales and profitability. Although, the new product development team conducted research to determine the potential of the product, the team has not clearly understood the methodology used and how reliable the research is.   Moreover, UWB also does not have external perspective on opportunities for the product. For example, they did not study other banks or the competitors if these banks already have a product that can be compared to the instant reward card. If other banks have it already, they should have been study on how the product is doing in the market, the benefits it gives the customers, its disadvantages and how the product has been profitable so far to the banks who has that product. By doing that, UWB can be able to add value to its instant reward card, making it more attractive to the customers. This technique to measure an organization against other organization and identify opportunities and approaches to improve is called benchmarking (Crow, 1999). Benchmarking is the process of identifying, understanding, and adapting outstanding practices from organizations anywhere in the world to help a company improve its performance (TBE, 2006). As noted above, it is a tool to improve, and any business process can be improved and benchmarked, including new product development. Benchmarking is basically comparison of a company’s practices with other companies, not necessarily within an industry but also with other industry. For example, Ford Motor Co. as part of its Ford 2000 strategy to reduce production cost, studies and observed operations not only of rival auto manufacturers such as GM and Toyota but also other companies which show excellence like GE, McDonald’s, and Xerox to find best practices currently practiced for each particular operation that are applicable to Ford (Penman, 1999). Ford Motor’s benchmarking is a continuous process and one of its key implementation is the “American Keiretsu”. As the name implies, Keiretsu is first modeled by Toyota (Kotabe, 1998) and currently being practiced by GE, Microsoft and others. With American Keiretsu, suppliers become involved in the design and development of products (Penman, 1999). Another company who uses benchmarking is IBM. By 1993, IBM experienced straight decline in revenues brought about by change in the marketplace because of its creation of new products such as PCs that had lower profit margin than some of the firm’s traditional offerings (PDBPR, 2002). This event has led IBM to make analysis and benchmarking of some of the best practices in market planning and product development. IBM found out a suit of practices, from within the company and outside the company which offered the best opportunity for IBM to move forward (PDBPR, 2002). Practices such as structured process; team based management; asynchronous development and business tiers; and customer $APPEALS which is a psychographic method developed by Peter Marks to understand what motivates customers to buy a product (PDBPR, 2002), helped IBM established new approach to product development. Because of benchmarking, IBM became committed to develop only those that had the best chance to win the market and say no to other opportunities. The problems of UWB can be solved by using the approaches made by the companies mentioned above. They can consider observing other companies in the bank industry and in other industries to determine the best practices in launching a new product such as the methodologies used in formulating new ideas and the effective methodologies used in determining the market, its size and other factors that can affect the profitability of the product. After observation and studying of other companies, UWB can now formulate its own standard. Moreover, they should also observe within UWB itself. In the scenario it was stated that the VP for marketing development had successful relationship with one of the market segment of the company. The VP might have some best practices that should also be benchmarked and considered to be adapted by the team in creating and developing new products. References: Crow, Kenneth (1999), Benchmarking Product Development,             DRM Associates Online             <http://www.npd-solutions.com/bmpd.html> Kotabe, Masaaki et al (1998) Ford Motor Company and Die Development,             University of Texas at Austin Graduate School of Business Penman, Bob (1999) Ford Motor Company, Management of International Operations MGMT 222 Product Development Best Practices Report (2002), IBM’s Journey Back  to Profitability; Integrated Product Development Plays Key Role, online < http://www.roundtable.com/PDBPR/IBM.html> The Benchmarking Exchange online date retrieved: March 24, 2006             <http://www.benchnet.com/wib.htm>             United States Small Business Administration, Marketing Research,             Online Date Retrieved: March 24, 2006             <http://www.sba.gov/starting_business/marketing/research.html>

Bench Marketing

USA World Bank, UWB, is an international major bank, with branches across the country as well as in several locations worldwide. The compa...

Effective Purchasing Performance

Effective Purchasing Performance Introduction In an organization, the department needs to outline the essential elements just to perform effectively according to their functions. Usually the managers are the person who ensures the performance of their departments. Every area in an organization comprises with unique characteristics to support the overall performance of the organization. Purchasing One of the important processes in an organization is the purchasing department. In this area, the manager and the staff should work together to organize all of the necessary information and materials. Every organization are proposed to have their unique way in managing the purchasing department to ensure that all the allocated budget are not wasted and utilized according to its purpose. Because of the influence of globalization, the businesses are forced to move in targeting the higher value in transaction and administration. In this case, the businesses formulated an effective purchasing management. The effective purchasing management does not only centers in its core function but also strategically focus in adding competitive advantage for the organization. Through applying the best practices, the operations in the purchasing department can be competitively managed. Managers and staffs who handle the purchasing function recognize the importance of their role can support the ongoing operation of the department and experience its significant contribution in the business performance (SSM, 2009). Effective Purchasing Management Strategies The purchasing management can be effective through the use of the system that provides the quality materials and other necessities for the business in a timely and cost-effective manner. At first, it is important to hire the people that can function according to their roles and responsibilities. Efficient and cost effective purchasing operations’ depends entirely on the well-trained people. These people are expected to facilitate the communication and shows accountability in their duties. On the other hand, the budget that is used in purchasing functions is required, but should be not excessive. Through the balance management in the purchasing department, there is an assurance that practices involved meets the criteria without sacrificing the quality and timeliness. It is an advantage for the organization to use the advanced technologies in purchasing that promises convenience because it allows the efficient processes as a strategic response in time, costs, recording, and others. The operations included in the warehousing is also part of the purchasing management and can be effective if there is an assurance that all the purchases and deliveries are administered in a level that can satisfy the time and inventory area. All the activities involved in the warehousing operations are recorded and accounted in order to control the purchasing processes. The process in contracting is also important in purchasing for it is the manner of monitoring and evaluating the services received from the external entities. The processes in contracting analyses the goods and services that play significant role in meeting the quality. Usually the contracting practices involve the negotiation processes such as including the bidders and evaluate the contract according to the best attribute of goods and services at justifiable costs (RESC, 2009). Advantages and Disadvantages In a simple form of explanation, the purchasing is about buying the right goods, at the right time, at the right price, with the right quantity, and of the right quality. This is the fundamental requirement of the purchasing department, but because of the great numbers of competing sellers or bidders, the management cannot measure the best among the masses of vendors and suppliers. In adopting the effective purchasing strategies, the organization can easily manage this area and adds value in their competitive advantage. It is an advantage in the organization if the purchasing management is proactive and adds value to the organization, improves communication with the suppliers and other potential suppliers, and has a better understanding in the marketplace. On the other side, there are no real disadvantages if the people and the process are aligned according to the objectives of the department, as well as to the organization. However, time and budget invested in the process might be the critical elements that should be monitored because it has tendencies to deliver the drawbacks instead of benefits (Barclays, 2005). Conclusion The effective purchasing management lies in the present situation of the organization and the influence from the past management. Through recognizing the weaknesses and threats in the purchasing management, the people can have the idea on the things or areas that should be emphasize in order to meet the new set objectives. The continuous practice of the purchasing management can polish the said areas and be an effective department in the organization. References: Barclays, (2005) Effective Purchasing, Chartered Management Institute [Online] Available at: http://www.barclays.com/latitudeclub/pdf/pdf_146_effective_purchasing.pdf [Accessed 29 July 2010]. RESC, (2009) Purchasing and Contract Management, RESC Reviews Protocols [Online] Available at: http://www.window.state.tx.us/tspr/resc/9purchasing.pdf [Accessed 29 July 2010]. SSM, (2009) Effective Purchasing Management, Spotts, Stevens and McCoy, Inc. (SSM) [Online] Available at: http://www.ssmgroup.org/upload/Effective%20Purchasing%20Management.pdf [Accessed 29 July 2010].

Effective Purchasing Performance

Effective Purchasing Performance Introduction In an organization, the department needs to outline the essential elements just to perf...

Assignment Essay Instructions on Globalization

Students are required to submit a formal academic essay answering the following question. . Globalization is perhaps easier to appreciate in lay terms than it is to define academically. Explain, with suitable examples, why achieving a complete definition of globalization is so difficult. Guidance: This question is a way of helping you to begin to explore the subject. You can think about the early lecture material, in terms of drivers to globalization, and different understandings of globalization from economic, political, business and lay perspectives. You can do this, for example by finding, and comparing and contrasting published definitions and set this in the context of your own experience of the phenomenon. The essay will be assessed based on the following criteria, 1 A well thought-out argument that is a clear and coherent response to the question. 2 A very good understanding of the subject matter that is displayed in the essay and critically deployed to make the argument. 3 A well structured and planned argument that displays balance and leads the reader through a clear introduction, core and conclusion. 4 A well written, fluent and persuasive style. 5 A well researched bibliography that makes good use of appropriate of sources. 6 A properly presented formal style with correct annotation for sources (footnotes or Harvard style). Thank you again for your help with my essay, you would be proud to know on your last subject you received a B Grade.

Assignment Essay Instructions on Globalization

Students are required to submit a formal academic essay answering the following question. . Globalization is perhaps easier to appreciate...

International Organizational Behaviour

Introduction Culture is the basis for the vast majority of human thought and behavior, along with whatever is produced from these. Culture distinguishes and helps to define the human, just as the wings of the bird or the fins of the fish serve to separate and distinguish these animals. Whereas for other members of the animal world adaptations or adjustments to the physical environment are, for the most part, the result of biological adaptation and inherited physical characteristics, adaptation for humans goes well beyond their biological inheritance. Humans create, learn, and use culture to respond to environment, control it, and even change it. Culture represents that unique ability of the species to gain significant control over aspects of the natural environment and even their own biology, within which the cultural capacity is grounded. Culture is used by people to create the socio cultural environment, to which they must also adjust or adapt. This socio cultural environment can overlie the natural environment (Banks, 1996). Culture exists in the natural environment, creates the socio cultural environment, and is also used to adapt to both those environments. It is used by humans as the mitigating factor between themselves and the environment, to respond to the limitations or problems imposed by the environment that directly affect their survival. No other animal has this capability, and no other animal has created culture (Ali, 2003).    Regardless of where they may be located, all humans have culture. This means that at least on one level, all humans are basically the same not necessarily equal but similar in that they all create and use culture for the same basic purpose. At the same time that culture can be used to characterize humans as a group distinct from other animals, it is also used to differentiate between groups of humans. Because culture represents the primary means by which people live and adjust to the problems and conditions of their environments, it also represents the end result of choices made by them from among all the alternatives that are available to solve their problems, given the particular circumstances in which they find, or create for, themselves. In the context of adapting to particular environments, culture is inextricably tied to change. Within all cultures there must be some provision for coping with new conditions or problems that arise in the natural and socio cultural environments, both of which are always in a state of flux. The ability to change is an essential process if a culture and the people who share it are to survive. Human groups unable to meet the challenges of new circumstances are not likely to survive, nor will their cultures (Darder, 1995). Change has always been an aspect of human culture, but now it means very different things than it did in the past: in the kinds of changes experienced, the circumstances by which change is made necessary, and its scale. In the earlier periods of human history change was not always as apparent as it may be today. But as culture developed, and as humans increasingly affected the physical and socio cultural environments through their activities and accomplishments, change became much more extensive and occurred with greater frequency (Davis et al., 2004). Human culture is deemed as unitary amongst countries and certain individuals. The paper wants to know if the extent that people can assume that cultures are unified and homogenous simply because they coexist within politically determined national boundaries. The paper will also determine what implications this has for the use of national cultural frameworks to understand organizational behavior.     Discussion   Human cultures being unified and homogenous Human culture is a complicated mixture of interactions of various causal mechanisms. Some features may be explicable with relatively simple assumptions. Other features are not so easily explicable because they are more culturally or environmentally sensitive. Human cultures also are historical entities, changing over time, but they also carry with them vestiges of their past. For these reasons, it is plausible to suggest that the mechanisms by which cultural change occurs may be analogous to biological processes (Dean, 2000). Transmission of information occurs, whether it be encoded in genes or ideas. Thus, another resource that biology offers is a theoretical structure from which to build analogous models for cultural change and stasis. The analogical strategy acknowledges from the outset that the relation between the two domains is one of similarity, not identity, so that such an investigation illuminates the differences between biological and cultural processes, as well as the similarities. Because human beings are both just another species and a particularly highly developed one, an isolationist stance of scientific division of labor is unwarranted. No doubt the sophistication of human cultural capacity is impressive and requires special attention a task the social sciences like anthropology, sociology, and psychology fulfill (Allen & Skelton, 1999).   Indeed, issues such as the evolution of social intelligence, language, nonverbal communication, and human social institutions, or the ecology of human behavior, call for interdisciplinary interaction. Each of the features involved has some parallels in other organisms, but the combination and degree of exaggeration of these features indicates that the ways in which humans are unique are crucial to the explanations of their behavior. Thus far, interdisciplinary cooperation is the exception. Mutual ignorance, at worst and analogical transfer of biological concepts, at best, still dominates the situation (Edgar & Klein, 2002). Attempts to explore human cultural phenomena that transgress the boundary of a single social or biological discipline are rare. Thus, recent evolutionary theory from sociobiology and population genetics attracted attention because of their various claims to answer questions relating to the development of human culture, social behavior, the development of social institutions, and their transformation. Within the social sciences, such attempts reflect a minority position at best and passionate rejection at worst. Apart from anthropology and psychology, there are only a few sociologists who seriously consider human biological design to play a constitutive role in the current designs of human societies. The idea of a single, unified culture encompassing the whole world has a long and relatively undocumented history. An inventory of the various historical dreams, visions and speculations about a global culture would have to include at least those of: the imperial projects of the ancient world empires such as China or Rome; the great proselytizing world religions and the communities of faith established around them (Maasen et al., 1997).   The utopian global visions of early socialists such as Saint-Simon; the various movements dedicated to establishing world peace; the ideas, beginning in the nineteenth century, of enthusiasts for artificial international languages such as Esperanto; and many more.  These ideas clearly differ from each other in all sorts of ways. But two things unite all these visions. First that they all approached the idea of a single global culture with enthusiasm, and second that none of them came anywhere near to seeing it achieved (Hutcheon, 1999). The ideas of a global culture in the air today-in the intellectual and critical discourses of the past are different. They are not, in the main, visionary or utopian ideas.  Rather they are speculations that arise in response to processes that people can actually see occurring around them. These processes, which are generally referred to collectively as globalization, seem to be tying all-nations, communities, individuals-closer together. It is in the context of globalization, then that current discussions of an emergent global culture assume a different significance from earlier speculations. It is not only that the current social, economic and technological context makes a global culture in some senses more plausibly attainable-a concrete possibility rather than a mere dream. It is also that this very sense of imminence brings with it anxieties, uncertainties and suspicions. Talk of a global culture today is just as likely, probably more likely, to focus on its dystopian aspect, to construct it as a threat rather than a promise. To grasp its close relation to the processes of globalization and to distinguish it from earlier traditions of thought, this part shall refer in what follows to the idea of a globalised rather than global culture. A globalised culture refers specifically to the way in which people, integrating the general signs of an increasing interdependence that characterizes the globalization process with other critical positions and assumptions, have constructed a pessimistic master scenario (Boyd & Richerson, 2005). The unification of human culture is an old and persistent practice that hasn’t gained its goals due to the differences in culture and the factors in the environment. A unified human culture will be good to reduce or eliminate discrimination and racism but it cannot easily happen due to political boundaries.   Culture and Politically determined national boundaries Cultural studies have been a sustained effort to transform the object of studies in the humanities. For example, in English departments, cultural studies has challenged the predominance of the governing categories of literary studies in the interest of producing readings of all texts of culture and inquiring into the reproduction of subjectivities. Pressure has been placed on disciplinary boundaries and the methods that police these boundaries, and modes of interpretation and critique have been developed that bring. In addition, the lines between high culture and mass culture have been relativized, making it possible to address texts in terms of their social effectivity rather than their inherent literary, philosophical, or other values (Longman, Pinxten, & Verstraete, 2004). Cultural studies, is the result of the combination of the introduction of theory and the politicization of theory enabled by these social and institutional changes. However, the postmodern assault on master narratives theory has responded to the discrediting of both structuralism and Marxism in a conservative political environment by redefining the term politics to mean the resistance of the individual subject to modes of domination located in the discursive and disciplinary forms that constitute the subject. This has opened up the possibility of a new line of development for cultural studies (Giroux, 2000).   The one in which the local supplants the global as the framework of analysis and description or one in which re description replaces explanation as the purpose of theoretical investigations. Given that cultural studies are constituted by opposing theoretical discourses that, taken separately, are both necessary but limited, some kind of conceptual transformation or epistemological break is clearly needed. Postmodern cultural studies views subjectivities as the effects of local experiences, and it sees them as the result of individualized constructive processes that escape social determination. The argument that economic and cultural processes have interpenetrated one another to the point where the distinction itself is no longer useful therefore supports another argument that, on the surface, seems quite different but actually shares the same logic of indeterminacy that the production of subjectivity is an exclusively cultural matter, which cannot really be explained but only described in a sympathetic and affirmative manner (Hands & Siapera, 2004). Cultural studies must deal with this challenge to reconstruct civil society, in particular the contending public spheres in which cultural practices are channeled and evaluated. The very fact of the emergence of cultural studies is implicated in this new conjuncture. Cultural studies pretend to account for this process of disarticulation and re articulation from every possible perspective and according to an ornnivalorizing transdisciplinarity, nevertheless remaining as the privileged site of deterritorialization. Cultural studies, of course, takes interest in the crises of national identities unleashed by globalization processes throughout the world and according to new paths of influence, but the asymmetry of what traditionally has been characterized as imperialism continues to inflect these new but still unequal paths of influence between center and periphery (Carter, Donald & Squires, 1995).   Cultural studies, as it has been institutionalized, may have been born in England under the impulse to valorize and legitimize popular culture but political solidarity with the working class has been displaced, especially in the United States, as the focus of interest has shifted to the mass media, consumer capitalism, and identity politics. Today this latter image of cultural studies is quickly disseminating itself around the world like the Cocacolization of yesteryear. The only difference is that cultural studies is extending its global reach according to a marginocentric logic, that is, extracting academic value from all that can be taken to be marginal hence the fad of making use of such labels and phrases as marginality, in the margins, crossing borders, and so on in the titles of many books and essays in cultural studies. Modern politics and the culture industries have produced something worse than a phantasmatic public sphere: a culture against the people (Dienst & Schwarz, 1996). The cultural field has not offered any effective forms of resistance, especially if we focus on literary works that say nothing to illiterate or barely literate masses or television programs aimed at markets and not people. There is little regard for the ways in which cultural processes are inextricably part of the power relations that structure the symbols, identities, and meanings that shape dominant institutions such as education, the arts, and the media. Nor is there the slightest attempt to theorize how the political character of culture might make possible a healthy and ongoing engagement with all forms of pedagogical practice and the institutionally sanctioned authority that gives them legitimacy (Katz, 2000).  Culture can be unified by the use of politically determined national boundaries but it cannot stop culture from adapting newer ideas from outside forces. It cannot prevent the mingling of ideas and opinions on issues that relates to culture. The national boundaries cannot prevent the spread of ideas that relates to culture especially if there is some sort of human interaction that happens between different cultures. Such kind of interaction usually happens in an organization.   Organizational behavior The direction of behavior of the organization as a whole, and of each of its components, depends on the template or charter and the decider subsystem of the organization. These are the sources of purposes and goals toward which organizational behavior is directed. To act properly as components of the organization, individual members and groups must be guided by motives that are based on the organization's purposes and goals. What are far more important, from a behavioral perspective, are habits (Ingram, 1995). Much of the day-to-day behavior is controlled by habits. This means that one does not have to consciously think about his/her behaviour it comes almost automatically. Driving is a common example of behavior that is largely under the control of habits. These habits have to be learned but, once acquired; one can carry out the required behaviors almost without thinking about them. It is not uncommon, for example, for someone to arrive at work having little recollection of the actual journey. Nevertheless they have arrived without incident. The behaviours of stopping at traffic lights on red, turning at certain landmarks, etc. have been so well learned that they happen almost automatically. They have become habitual. Habits are, of course, very useful. Having to think about how one is going to behave takes time and effort because thinking is costly (Tracy, 1994).    For behaviors that are routine it is highly efficient to have them controlled by habits. As has been mentioned, it appears that attitudes only influence a small part of behaviour. Research suggests that the situations in which attitudes do predict behavior is when the behaviour is novel. People are then likely to consult their attitudes, to decide how they ought to behave. Repeat behaviours, on the other hand, are likely to become habitual. At an organizational level it is perhaps worth noting that customer habits are particularly important for organizations that rely on repeat business. Habits that lead people to return to the same record store or supermarket, for example, may be very profitable for the organization concerned (Cox & Makin, 2004).  To achieve a better understanding of organizational behavior (OB), one must study organizational misbehavior as well. Organizational misbehavior (OMB) is defined as acts in the workplace that are done intentionally and constitute a violation of rules pertaining to such behaviors. Traditional Organizational behavior models emphasize normatively desirable behaviors under constructs such as satisfaction, attachment, motivation, commitment, leadership, development, redesign, and enrichment and neglect issues such as indifference, undermining, jealousy, abuse, exploitation, insults, manipulation, lying, betrayal of trust, malice, misinformation, pilferage, harassment, conspiracy, sabotage, and so forth. Even less blatant manifestations of misbehavior, such as white lies, arm twisting, incivility, and buck passing are almost ignored. There is no compelling evidence, however, that the former type of constructs better describe the complex realities in work organizations (Barrett, et al., 2002).   The intention to misbehave and the decision as to which form of misbehavior one will engaged in is assumed to be influenced by two independent, yet possibly intertwined, forces: an instrumental force reflecting beliefs about personal interests, and a normative force reflecting internalized organizational expectations. These two forces are a function of one or more antecedents acting collectively or separately at varied organizational levels individual, task/position, group, and organization. In other words, OMB comes with a hefty price tag and these costs determine, to a large extent, the type, timing, and scope of the intervention to be used by management. The integrative model of OMB posits four key points of intervention along the OMB process through which the organization may act to lower the probability of OMB occurring thus minimizing costs and other negative consequences. These four action levers differ with respect to their focus and, hence, call for different kinds of interventions. One important implication derived from this perspective is that one should think of OMB management not as a linear, but as an iterative process. Furthermore, the organization may apply a preventive strategy or responsive strategy (Vardi & Weitz, 2004).  The key issue is to what extent the intervention succeeds in lowering the level and frequency of the misbehavior. In other words, do the interventions succeed in altering the behavioral patterns of its target population so that the frequency and severity of OMB are decreased? To cope with OMB, one must be familiar with the dynamics of this phenomenon. That is, management needs to understand why employees intend to misbehave or be aware of different processes, in varied levels and settings that lead certain individuals to engage in specific forms of OMB. Management should also be aware of the forces that influence the intention to misbehave, and what possible expressions and costs are to be expected. However, one must keep in mind that there are possible beneficial as well as adverse consequences of the interventions designed to control these behaviors (Gibb & Williams, 1993). Organizational behavior and misbehavior can be affected by factors in the environment. Organizational behavior can also be changed by culture.   Organizational behavior and culture Organizational behavior is essentially concerned with what people do in organizations. Since the subject matter is behavior, it ought to lend itself to a scientific approach. But it is necessary to keep in mind that when people are brought together in organizations, they behave differently. To hold this idea in sharp focus it is useful to keep the basic psychological process in mind perception, emotion, and action. In organizations, people see the world differently than they do as individuals; they experience peculiar feelings, and act or behave in strange ways (Moingeon & Soenen, 2002). Organizational behavior is a rather nebulous field of study, and it is silly to consider it as if it had a specific intellectual jurisdiction. It can be described as romantic in the sense that its principles are difficult to define in scientific terms, and its boundaries are indistinct. The distinctive feature of organizational behavior is that it focuses on human behavior, a commodity which can be observed, measured, and objectively analyzed. But it is important to keep in mind that it is about structural observation of behavior. Although the constructs are sometimes difficult to delineate in the literature, researchers and theorists tend to reserve the term culture to refer to deep-seated, perhaps even preconscious beliefs and assumptions, which are shared by most or all members of an organization and work to exert influence on the corporate climate through the establishment of values and norms (Fine, 1995).   In other words, corporate culture is seen to lie behind climate. Climate is nearer the observable reality of the workplace than is culture, and unlike culture, climate tends to be local and group-specific and is very much influenced by a project leader's style. Corporate culture is viewed more as an organizational-level factor than a product of interpersonal relations. Yet, at their very core, these powerful shared meanings that drive workers' and managers' thoughts, motivation, and behaviors are constructed and perpetuated in the interpersonal arena. Corporate leaders can and do play a major role in establishing central themes and the ways that “things are done around here. The different realities experienced by different cultural groups point to the significance of the level of analysis in my definition of multicultural organizations (Schneider & Smith, 2004). Most of the work on diversity in organizations focuses on the interpersonal level. That focus is apparent in several different approaches. Some perspectives begin their analyses at the interpersonal level, broadly defining diversity in terms of individual differences. Even though the definition of diversity includes groups that could be defined as cultural categories, for example, gays and lesbians or the differently-abled, they are defined more narrowly, as individuals who have a particular lifestyle or physical impairment. Other approaches use cultural examples in defining and discussing diversity, but do not continue to work at the cultural level in analyzing organizational behavior and culture. All of these approaches to cultural diversity focus primarily on interpersonal interaction; the proponents of these approaches advise organizations and their employees to work to ensure that individuals become more sensitive to the interaction styles of others (London, 2001).   Focusing on the cultural level of analysis does not preclude developing interpersonal sensitivity; in fact, such sensitivity is critical in helping employees begin the process of transforming organizations. It does, direct the attention to the cultural influences that shape both individual and group behavior, and to the ways in which organizations are culturally created (Paulus & Nijstad, 2003). Working with culture as the unit of analysis also provides a way to construct a theoretical perspective on organizations and organizing that can accommodate a multicultural work force Certain cultural artifacts typical of an organization, such as a very informal work environment associated with open-space offices, may very well be at the heart of the organizational identity experienced by its members (Kelly, J & Kelly, L 1998). Organizational behavior is affected by culture because the way one acts in an organization can be due to the culture and traditions. The effect of culture in organizations can be used to understand further the relationship between a unified culture and a politically chosen boundary,   Conclusion The unification of human culture is an old and persistent practice that hasn’t gained its goals due to the differences in culture and the factors in the environment.  A unified human culture will be good to reduce or eliminate discrimination and racism but it cannot easily happen due to political boundaries. Political boundaries can cause more dissection than unity because people tend to protect their boundary than engage in sharing of cultures. Culture can be unified by the use of politically determined national boundaries but it cannot stop culture from adapting newer ideas from outside forces. Such kind of interaction usually happens in an organization. Organizational behavior and misbehavior can be affected by factors in the environment. An environment with high standards of morality may mean a better organizational behavior. An environment with less focus on morals may mean more occurrences of misbehavior. Organizational behavior can also be changed by culture.   References Ali, S. (2003). Mixed-race, post-race: Gender, new ethnicities,      and cultural practices. New York: Berg.   Allen, T. & Skelton, T. (Eds.). (1999). Culture and global      change. London:  Routledge.   Barrett, F., Fry, R., Seiling, J. & Whitney, D. (Eds.). (2002). Appreciative inquiry and organizational transformation: Reports from the field. Westport, CT: Quorum.   Banks, M. (1996). Ethnicity: Anthropological constructions.      London: Routledge.   Boyd, R. & Richerson, P.J. (2005). The origin and evolution of      cultures. New York: Oxford University Press.   Carter, E., Donald, J. & Squires, J. (Eds.). (1995). Cultural remix: Theories of politics and the popular. London: Lawrence & Wishart.   Cox, C. & Makin, P. (2004). Changing behaviour at work: A      practical guide. New York: Routledge.   Darder, A. (Eds.). (1995). Culture and difference: Critical perspectives on the bicultural experience in the United States.  Westport, CT:  Bergin & Garvey.   Davis, G.V., Delrez, M., Ledent, B. & Marsden, P.H. (2004). Towards a transcultural future: Literature and society in a post-colonial world. Amsterdam: Rodopi.   Dean, J. (Eds.). (2000). Cultural studies and political theory.      Ithaca, NY: Cornell University Press.   Dienst, R. & Schwarz, H. (Eds.). (1996). Reading the shape of      the world: Toward an international cultural studies.      Boulder, CO:  Westview Press.     Edgar, B. & Klein, R.G. (2002). The dawn of human culture. New      York: Wiley.   Fine, M.G. (1995). Building successful multicultural organizations: Challenges and opportunities. Westport, CT: Quorum Books.   Gibb, J.R. & Williams, L.C. (1993). The congruence of people and organizations: Healing dysfunction from the inside out. Westport, CT: Quorum Books.   Giroux, H.A. (2000). Impure acts: The practical politics of      cultural studies. New York: Routledge.   Hands, J. & Siapera, E. (Eds.). (2004). At the interface: Continuity and transformation in culture and politics. Amsterdam: Rodopi.   Hutcheon, P. (1999). Building character and culture. Westport,      CT: Praeger.   Ingram, L.C. (1995). The study of organizations: Positions,      persons, and patterns. Westport, CT: Praeger.   Katz, A. (2000). Postmodernism and the politics of culture.      Boulder, CO: Westview Press.   Kelly, J. & Kelly, L. (1998).  An existential-systems approach      to managing organizations. Westport, CT: Quorum Books.   London, M. (2001). How people evaluate others in organizations.      Mahwah, NJ:  Lawrence Erlbaum Associates.   Longman, C., Pinxten, R., & Verstraete, G. (Eds.). (2004). Culture and politics: Identity and conflict in a multicultural world. New York: Berghahn Books.   Maasen, S., Mitchell, S.D., Richerson, P.J. & Weingart, P. (Eds.). (1997). Human by nature: Between biology and the social sciences. Mahwah, NJ: Lawrence Erlbaum Associates.   Moingeon, B. & Soenen, G. (Eds.). (2002). Corporate and organizational identities: Integrating strategy, marketing, communication, and organizational perspectives. London: Routledge.   Paulus, P.B. & Nijstad, B.A. (Eds.). (2003). Group creativity:      Innovation through collaboration. New York: Oxford      University Press.   Schneider, B. & Smith, D.B. (Eds.). (2004). Personality and      organizations. Mahwah, NJ: Lawrence Erlbaum Associates.     Tracy, L. (1994). Leading the living organization: Growth      strategies for management. Westport, CT: Quorum Books.   Vardi, Y. & Weitz, E. (2004).  Misbehavior in organizations: Theory, research, and management.  Mahwah, NJ: Lawrence Erlbaum Associates.

International Organizational Behaviour

Introduction Culture is the basis for the vast majority of human thought and behavior, along with whatever is produced from these. Cult...

British Airways - Airline Innovation

OBJECTIVES As a person with knowledge of innovations, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this issue and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it. By delving into this project paper, the author intends to have better insights into how innovations are thought up, formulated and then imparted down into the subsidiaries of the company or organization. The author hopes to have an in-depth understanding as to how the innovations of companies enable them to compete effectively and profitably in this era of internationalization where competition is extremely intense. In order to reinforce the learning objectives, two key focal issues were focussed upon i.e. innovation and diversity. Innovation was discussed with regard to organizational renewal and change where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.      EXECUTIVE BRIEF This essay utilized British Airways and Emirates Airlines as the model airline companies to review their present innovations and how they dealt with critical situations. From the analysis, key trends in the innovations were then identified, how they worked and their effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these innovative strategies with regard to their suitability to critical situations, during which the internal capabilities of these innovations in relation to the strategy being followed by the airline companies was determined also. An overall analysis of the performance and effectiveness of the innovations of both companies was also conducted to assess and compare the capabilities of these innovative strategies with those of others. Gaps in the innovations and environment were then identified. Finally, several choices of strategies to improve the innovations of British Airways and Emirates Airlines as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.       INTRODUCTION Innovations can be defined as the creative policies and tasks that lead to the efficient and effective functioning of the organization or company. Innovations are necessary to satisfy a firm's customers, employees, and management. Typically, innovations focus on the careful management of the processes involved in the production and distribution of products and services (Amsden, 2001). More often than not, small companies and organizations don't really have the capabilities to implement innovations. Instead, these companies engage in activities that various schools of management typically associate with innovations. These activities include the development of creative products, production and distribution. However, innovations deal with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with innovations. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, innovations include the analysis and management of internal processes. British Airways from the UK, and Emirates airlines from the UAE will be the model business entities that will be used in this research based on their history in innovations. OVERVIEW OF BRITISH AIRWAYS British Airways aims for sustainable growth as a broad market leader in the airline industry as well as for segment leadership. In both cases, the services of British Airways will play a crucial part. The company is able to establish its broad leadership usually by acquiring other strong airline companies and their services, which are then combined into a new, larger company (Bartlett et al. 1989).  Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various services of British Airways. This practically results in economies of scale that is able to create a distribution network for both the local and international terminals of the company. If a market is already in the control of other airline companies, British Airways devotes its attention towards the development of a premium segment with its various airline services (Hobday, 1995).             The mission of British Airways is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company's profitability. The strategy to achieve this involves four elements: <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Striving in order to reach a leading position in attractive markets </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Focusing on securing a competitive share of the airline market segments. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Working in order to improve the company's efficiency and cut costs in operations. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Continuous growth through selective acquisitions for as long as they are able to create shareholder value. </li> OVERVIEW OF EMIRATES AIRLINES Emirates Airlines has four main objectives: A)   Remain one of the top companies in the airline industry. Being on top of its industry enables Emirates Airlines to command the respect and confidence of its clients. Thus, the company is able to expand its operations through the acquisition of other airline companies. B)   Gain more profit than other international airline companies. The raw materials that are being laid down in the airline services used by Emirates Airlines are able to meet high quality standards. As a result, the company is able to earn more profit as against other airline companies (Cyhn, 2002). C)   Build the best airline portfolio, with Emirates Airlines as the international brand of flagship; and D)   Maintaining its independence. Being an independent company allows to Emirates Airlines to continue its tradition of excellence in both its products and services by setting new trends and standards. In order to achieve these objectives, Emirates Airlines implements a strategy of promoting a combination of local and international airline services, but maintaining Emirates Airlines as the flagship brand. The company also aims for broader positions as well as either the top or secondary positions in any airline market. Any of these positions would be enough for Emirates Airlines to deliver a high level in terms of production, marketing and distribution. Moreover, these positions create a platform from which the company can promote their premium airline services and other specialties. And with a continued focus on the structures of the costs, the above mentioned objectives should undoubtedly be reached (Hill, 2002). Innovation Profit Chain Analysis 1) Environmental / Internal Beginning in 1995, British Airways started including smart-phones and handheld computers into the list of their airline services. These were equipped with a Personal Information Management (PIM) software and other note-taking applications (Arora et al. 2001).  A range of additional features including high resolution colored screens and wireless capabilities ensured that there's a mobile product designed to meet the needs of clients anywhere in the world. On the part of Emirates Airlines, segmentation is a key factor especially in airline markets where a broad leadership position has yet to be fully developed (Gronroos, 1994). In these markets Emirates Airlines strives for strong positions especially in the import and specialty segments.           Good examples here include Emirates Airlines's leading position in the airline industry in the UAE as well as the recently established airline markets within the capital city of Abu Dhabi.  In both examples, Emirates Airlines shows its desire to establish autonomous growth through expansion through the distribution networks as well as growth through acquisitions. 2) Endowments The innovations of British Airways focus more on the management and access of information rather the creation of irrelevant airline services. For this reason, British Airways has developed a unique set of guiding principles - simplicity, cost-efficiency and effectiveness. Total commitment to these principles makes the airline services of British Airways very user-friendly to its customers (Doz et al. 2001). Emirates Airlines was able to achieve a broad market leadership through various acquisition deals over the years. The company also exerts efforts to communicate with their customers in every local culture about their airline services and their impressions. And this is no easy thing because their regular clients and customers have different tastes in terms of airline service preferences. This critical information gathered by Emirates Airlines paves the way for them to make the right decision regarding the appropriate innovations to pursue. 3) Nature of Innovation The innovations of Emirates Airlines are focused mainly on driving the growth of its airline services and improving the company's financial performance. These innovations have also helped secure significant acquisitions and partnerships. And more importantly, these innovations have led to the release of the potentials of the company's employees, thus building a quality performance- based culture. The innovations of Emirates Airlines are practically reinforced by the local employees themselves. These moves certainly allow the company to improve even more without the costs of introducing new technologies. These efforts have resulted in increased financial gains for the company and have allowed the establishment of distribution networks for its airline services. On the other hand, British Airways' innovations in the airline industry changed for the better at the start of the new millennium and began pursuing airline service differentiation. True enough, the differentiated airline services of British Airways were able to satisfy the needs of customers through a sustainable competitive advantage. This allowed British Airways to desensitize the prices of their airline services and instead focused on the values that generated not only a comparatively higher price but also a better margin (Bjorkman et al. 1997). 4) Competencies <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> British Airways has airline services that boast of a very powerful retail. This includes a reputation for value of money, convenience and a wide variety of airline services.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> British Airways has grown significantly over the years, and has experienced global expansion.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> British Airways' main competence lies on the use of information technology (IT) to fully support its international logistics system. Therefore, the company can see how their individual airline services perform within the United Kingdom, or even at other countries at a glance. IT also supports the company's efficient procurement (Christensen, 1997).</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines is able to deliver good customer care, as the limited amount of work would mean plenty of time to devote to customers.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines' lead consultants have established a strong reputation within the market.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines can afford to change direction quickly if its management finds that the company's innovations are not effective.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines has little deficits and overheads. Therefore the company can offer good value to customers on a consistent basis.</li> </ul> 5) Profits / Competitive Advantages Because of British Airways' successful implementation of its innovations, the following profits and benefits were achieved over the years: ·         Financial Stability Financial stability is crucial especially in the pursuit of research and development activities. In the airline industry, it is important to remain updated with the latest technological developments to be able to stay competitive in the market. ·         Excellent Service Performance and Price The designing of the best airline services comes as a result of well-funded research and development activities. The strong performance of airline services in the market could also be linked to their cost-effectiveness. However, British Airways has to be aware of the positioning in terms of process so as to maintain satisfactory profits margin and remain competitive in the market. ·         Effective Distribution of Airline Services High airline service awareness among the buyers has created the need for aggressive marketing, and access to strong distribution channels is critical for the introduction of new airline services (Best, 2001). Because of Emirates Airlines' successful implementation of its innovations, the following profits and benefits were achieved over the years: ·         Economies of Scale and Scope in manufacturing and research and development arising from its numerous facilities situated in the United Arab Emirates and other countries worldwide.     ·         Unique Quality Airline Technology Emirates Airlines' commitment to research & development activities has always been one of its top strategies to remain competitive in the market.         ·         Differentiated Airline Services Through the production and marketing of differentiated airline services originating from their research and development activities, Emirates Airlines is able to create its own firm-specific advantages. The continuous pursuit of research and development processes enables Emirates Airlines to produce a steady stream of originally differentiated products which makes it difficult for competitors to find substitutes. Because of this differentiated approach, Emirates Airlines is able to market their airline services worldwide, which enables them in turn to maximize the returns on research and development expenditures (Baumol, 2002). FINANCIAL COMPARISON In the fiscal year of 2003, British Airways was able to experience a significant progress in several key metrics because of their innovations. The inventory was reduced from $55 million to $23 million and inventory turns rose from 12 to 26. The cost of revenues, excluding the benefit from previous special charges and the applicable portion of the amortization of intangible assets, decreased from 72.3% of revenues to 67.8% of revenues. British Airways has been showing steady signs of growth and progress for a couple of years now. This consistent progress can be attributed to the change in strategic directions and innovations that was implemented several years ago and is still being further structured up to now. Basically, the critical element of the strategy was that British Airways started looking at things from the perspectives of the clients and the customers. British Airways is committed on its efforts to continuously develop original innovations that generate a high appeal to the general public due to its quality and cost effectiveness. Over the years, the company has been able to build a substantial base meant to boost the company's designing and manufacturing capabilities. This enables the company to bring to airline markets truly original and more importantly significant innovations that are reasonably priced. The research and development team of British Airways also plays a crucial role in the achievement of this feat. The company also believes that making a positive impact in the society through their quality innovations is the very essence of being a dependable airline company. On the part of Emirates Airlines, the combination of innovations in sales and marketing, as well as in research and development significantly reduced general and administrative expenses from $ 435 million to $339 million, while at the same time improving on the pace of innovation. Emirates Airlines' total revenue has approximately grown from $1 million in fiscal year 1995 to $ 871. 9 million in fiscal year 2003. Its excellent airline service is the main product of the company and is considered as its most important asset. Emirates Airlines belongs to the top-international airline company circles in the world, as proven by its average growth of nearly 8% in revenue volumes in the last ten years. Emirates Airlines already has a premium status in all its markets. Its airline service is practically the main profit provider of the company in the broad markets. Also, because of its market strength, Emirates Airlines has already obtained significant profitable segments on its own. RECOMMENDATIONS A tie-up or merger with various local airline companies offers tremendous benefits in terms of access to the company's innovative strategies, infrastructure and even its resources. However, British Airways and Emirates Airlines must not lose sight of their core competencies while pursuing these tie-ups. Otherwise, the image of both companies might be put in jeopardy. Meanwhile, the collaboration of British Airways and Emirates Airlines with their major competitors can be seen as a ridiculous move at first.  However, upon close examination, this move could pave the way for both companies to increase even more their market shares and revenues and improve their innovations (Dunning, 1993). The bottom line is both sides would be able significantly gain financially and strategically in such an alliance. Their strengths in airline service development combined with the financial capabilities and innovations of their competitors can transform them suddenly into an unbeatable force to reckon with. One possible setback, however, is the differences in the cultures of the airline companies involved. Another possible setback could be whether any of British Airways and Emirates Airlines' competitors has the need to form alliances. In terms of appropriateness, all three options are able to directly address the current issues mentioned. However, the question remains whether British Airways and Emirates Airlines could be able to implement any of these options, and whether these options can be acceptable to the key stakeholders. Any merger or alliances may also involve the sharing of expertise. Both British Airways and Emirates Airlines have traditionally relied on the inside-out approach. It is important to note that any merger transactions would have many implications on the company's values and culture as well as the resources (Kim, 1997). The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, British Airways and Emirates Airlines will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned strategic options. REFERENCES Amsden, A. 2001. The Rise of "The Rest": Challenges to the West from Late-Industrializing Economies. New York: Oxford University Press.  Arora, A., Fosfuri, A. and Gambardella, A. 2001. Markets for Technology: The Economics of Innovation and Corporate Strategy. Cambridge, MA: The MIT Press. Bartlett, C.A. and Ghoshal, S. 1989. Managing Across Borders: The Transnational Solution. Boston: Harvard Business School Press.  Baumol, W. 2002. The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism. Princeton, NJ: Princeton University Press.  Bjorkman, I. and Forsgren, M. 1997. The Nature of the International Firm. Copenhagen Business School Press.  Best, M. 2001. The New Competitive Advantage: The Renewal of American Industry. New York: Oxford University Press.  Christensen, C. 1997. The Innovator's Dilemma: When New technologies Cause Great Companies to Fail. Cambridge, MA: Harvard Business School Press.  Cyhn, J.W. 2002. Technology Transfer and International production: The Development of the Electronic Industry in Korea. Cheltenham, UK: Edward Elgar.  Doz, Y., Santos, J. and Williamson, P. 2001. From Global to Metanational: How Companies Win in the Knowledge Economy. Boston, MA: Harvard Business School Press.  Dunning, J. 1993. Multinational Enterprises and the Global Economy. Addison-Wesley.  Grönroos, C. 1994, From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing, Management Decision, 32 (2), Hill, C. 2002. International Business: Competing in the Global Marketplace. Boston, MA: McGraw-Hill Irwin.  Hobday, M. 1995. Innovation in East Asia. St Martins Press.  Kim, L.S. 1997. Imitation to Innovation: The Dynamics of Korea's Technological Learning. Harvard Business School Press.  www.britishairways.com Retrieved June 27, 2006 www.emirates.com Retrieved June 27, 2006

British Airways - Airline Innovation

OBJECTIVES As a person with knowledge of innovations, the author has always brought up to his superiors the viability ...