Research Korner

Research Proposal on Change Management

Research Proposal on Change Management Change management is a structured approach to shifting and transitioning individuals, teams and companies from the current, initial state to a desired future state.  It is normally a top-down change process.  As with every plan to embark on major changes, it is wise to begin with a systematic analysis about leadership styles and group dynamics.  Organizational Change Management aligns groups’ expectations, communicates, integrates teams and manages people training.  It makes use of performance metrics, such as financial results, operational efficiency, leadership commitment, communication effectiveness, and the perceived need for change to design appropriate strategies, in order to avoid change failures or solve trouble change projects.  (Wikipedia) According to an article on Team Technology on Change Management, there are five basic principles which should be kept in mind: 1.    Different people react differently to change 2.    Everyone has fundamental needs that have to be met 3.    Change often involves a loss, and people go through the "loss curve" 4.    Expectations need to be managed realistically 5.    Fears have to be dealt with Here are some tips to apply the above principles when managing change: ·         Give people information - be open and honest about the facts, but don't give overoptimistic speculation. I.e. meet their openness needs, but in a way that does not set unrealistic expectation. ·         For large groups, produce a communication strategy that ensures information is disseminated efficiently and comprehensively to everyone (don't let the grapevine take over). I.e.: tell everyone at the same time. However, follow this up with individual interviews to produce a personal strategy for dealing with the change. This helps to recognize and deal appropriately with the INDIVIDUAL REACTION to change. ·         Give people choices to make, and be honest about the possible consequences of those choices. I.e. meet their CONTROL and INCLUSION needs ·         Give people time, to express their views, and support their decision making, providing coaching, counseling or information as appropriate, to help them through the LOSS CURVE ·         Where the change involves a loss, identifies what will or might replace that loss - loss is easier to cope with if there is something to replace it. This will help assuage potential FEARS. ·         Where it is possible to do so, give individuals opportunity to express their concerns and provide reassurances - also to help assuage potential FEARS. ·         Keep observing good management practice, such as making time for informal discussion and feedback (even though the pressure might seem that it is reasonable to let such things slip - during difficult change such practices are even more important).  (Team Technology)  Organizational change can be defined by the following (Changing Minds): <ul type="disc" style="margin-bottom: 0in"> 	<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 	 	 	The Change Imperative: 	no organization can ignore it. 	<ul type="circle" style="margin-bottom: 0in"> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		Historical change- the bottom line is that change is eminent.  		Technology and science continue to revolutionize our work.  Global 		economy and politics affect businesses, making it important to change.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		The Red Queen effect- this is a term used by biologists to describe the 		evolutionary necessity to evolve faster than one’s competitors.  In a 		highly competitive advantage, being first counts, coming in second you 		get to pick at the crumbs.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		The Reengineering trap- The term ‘reengineering’ was used as a loose 		cover for serious cutbacks and restructuring in which there was only a 		noticeable focus on the short-term.  Change does not mean firing one’s 		employees as they are the lifeblood of the organization.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		Competitive advantage- change is a competitive advantage.  The ability 		to change means survival.</li> 	</ul> 	</li> 	<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 	 	 	The psychology of change: 	starts from the very beginning.  Manage the initial announcement to change 	by thinking about the effects it will have and stage the communication in a 	way to have the impact and effect you desire.</li> </ul> o    Initial concerns: The threat to deep systems. o    Initial reactions: Negative or positive? o    The Kübler-Ross grief cycle: The emotional cycle on given bad news. §  Shock stage: Initial paralysis at hearing the bad news. §  Denial stage: Trying to avoid the inevitable. §  Anger stage: Frustrated outpouring of bottled-up emotion. §  Bargaining stage: Seeking in vain for a way out. §  Depression stage: Final realization of the inevitable. §  Testing stage: Seeking realistic solutions. §  Acceptance stage: Finally finding the way forward. o    The positive change cycle: Even good news has its ups and downs. o    Resistance to change: When people push back against the change. §  Rationale for resistance: What people tell themselves. §  The resistance zoo: the animals and their styles of resistance. §  Signs of resistance: spotting subtle signals of dissent. §  How to cause resistance: there are many ways! o    Strong and weak commitment: After an agreement, commitment may vary.   <ul type="disc" style="margin-bottom: 0in"> 	<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 	 	 	The Kübler-Ross grief cycle: 	The emotional cycle on given bad news.  These stages are useful to 	understand and facilitate change.</li> </ul> o    Shock stage*: Initial paralysis at hearing the bad news. o    Denial stage: Trying to avoid the inevitable. o    Anger stage: Frustrated outpouring of bottled-up emotion. o    Bargaining stage: Seeking in vain for a way out. o    Depression stage: Final realization of the inevitable. o    Testing stage*: Seeking realistic solutions. o    Acceptance stage: Finally finding the way forward.   <ul type="disc" style="margin-bottom: 0in"> 	<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 	 	 	Lewin's freeze phases: 	Unfreeze, transition, refreeze are stages of change according to a 	psychologist Kurt Lewin and which are still the basis of many approaches 	today.</li> </ul>   <ul type="disc" style="margin-bottom: 0in"> 	<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 	 	 	Resistance to change: 	When people push back against the change.  Resistance comes in many forms- 	active or passive, overt or covert, individual or organized, aggressive or 	timid.</li> </ul> <ul type="disc" style="margin-bottom: 0in"> 	<ul type="circle" style="margin-bottom: 0in"> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		 		Rationale for resistance: 		What people tell themselves.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		 		The nature of opposition: 		knowing your 'enemies' in change.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		 		The resistance zoo: 		the animals and their styles of resistance.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		 		Signs of resistance: 		spotting subtle signals of dissent.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		 		Dealing with resistance: 		a range of methods may be used.</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		 		How to cause resistance: 		there are many ways!</li> 		<li class="MsoNormal" style="line-height: 200%; margin-bottom: 1.5pt"> 		 		 		Responding to unexpected resistance: 		When faced with pushback, what do you do?</li> 	</ul> </ul> References: Change Management.  Wikipedia.  Retrieved 17 May, 2011 from http://en.wikipedia.org/wiki/Change_management Change Management.  Changing Minds.org  (n.b)  Retrieved 17 May, 2011 from  http://changingminds.org/disciplines/change_management/change_management.htm Five Basic Principles, and How to Apply Them.  (n.b.)  Team Technology.  Retrieved 17 May, 2011 from http://www.teamtechnology.co.uk/changemanagement.html

Research Proposal on Change Management

R esearch Proposal on Change Management Change management is a structured approach to shifting and transitioning individuals, teams a...

ECONOMIC ARGUMENTS LABOUR HOUSING FACILITIES SINCE 1997

ECONOMIC ARGUMENTS LABOUR HOUSING FACILITIES SINCE 1997   INTRODUCTION             This is a report outlining the different arguments for and in opposition to the Labour Housing Policies since 1997. The topic will be presented as follows: 1. a background of the New Labour Policy; 2. the arguments in connection with the development of the New Labour Housing Policy since 1997. This paper will also provide illustration that would best illustrate the arguments. The graphics may be the own creation of the author or come from the references. A conclusion will end the report, evaluating the arguments and presenting the side taken by the author.   BACKGROUND             According to Stewart (2005), the current political system seeks to promote a sustainable ‘social contract’ between citizens and the State, public, private and voluntary organizations in delivering community-based changed. According to Wells (2004), ‘what counts is what works’ and ‘what works and why’ have been the important elements of the New Labour approach to government and in particular to the implementation of large social and economic development programmes. The New Labour, since the time it has been branded as the New Labour, the ways to modernization was its main concern.     Several problems of disrepair and the need for extensive improvement and modernization. According to Cowan and Marsh (n.d.), an early move for the government was to make available £800 million in capital receipts for re-investment in the council stock over the period of 1997-99. This was followed by an increase in planned spending for housing for the period 1999-2002 £3.9 billion. ARGUMENTS There are number of people in the United Kingdom that has been putting emphasis on the policies of the New Labour. There are those who claims that the there was no improvement as to the way the government has been answering to the call of new housing policy. However there are those who would affirm to the current housing policies. Nevertheless, the need to amend or revise the housing policy has been the subject matter for the majority of authorities. According to Conway, that there is an inherent tension in housing policy between long-term and short-term objectives. The housing stock is fixed asset lasting decades and often centuries. Housing investment depends upon a high level of capital expenditure with a commitment from public and private expenditure. Housing policy is focused on the development of the public sector, catering for those who needed assistance to obtain a decent home. This is derived from the belief that the public sector would break the link between low income and poor housing. The housing stock is considered as fixed asset because of the need of the people to have a house, thus the government implements policies in order to meet the demand of its constituents.   The tremendous housing demand in the United Kingdom is due to its housing policy and on how it is done.  A property owner would make his property available for occupation or renting, several aspiring tenants would line up and the clamor for houses will make the price of the rented house go up (see illustration after this paragraph). This is due to the fact in the law of supply and demand, increase in demand and decrease in supply, increases the amount. There was a clamor to the housing which are available for rent because of there are series of report that there has been a shortage for housing for the poor and because of long-tern tenure of the occupants with the rented house. The illustration provides an overview on how the above-mentioned factors are a cycle in pulling up the price of the house. Thus, it can be inferred that the New Labour Housing Policy is not that good in enforcing its policy as the housing facilities has a poor grade on its development. EXPLANATION: The price P of the housing product is determined by a balance between production at each price (supply S) and the desire of the people purchasing power at each price (demand D). This graph depicts that an increase in demand from D1 to D2 along with the consequent price increase and quantity rented of the houses. According to Mc Lennan (1995), once a price was triggered, United Kingdom house prices tended to accelerate for a year or two with a frenzy of purchase and trading activity. Prices peaked as interest rate increases induced mortgage rationing and as deposits fell because mortgage rates were sticky.             According to the Monetary Policy in 2004, it was identified that the lack of supply as a major cause of high house prices and concluded that between 70,000 and 120,000 additional private sector properties are requires annually. What is needed is the right mix of housing, meaning more social and affordable properties, to allow those who think that owning their own home is just a dream, to make it a reality. Thus, it can be inferred that the policy of the New Labour has never met the demands of the public as regards to its housing facilities. t is a proof to the fact that the New Labour policy may be that intensive but it lack proper implementation. According to Smith and Griffiths, (1997), the policy objectives of the housing policy may be easy to construct but it is much more difficult to actually achieve them. In practice, some of the objectives may with one another. For example, an effort to create or maintain communities may not coincide with an effort to allocate rehousing based on priority needs, because priority of its constituents has been changing from time to time and majority of the constituents has been turning into a working-class group. Thus, maintaining communities may not be able to be accomplished because of the differences of the priority needs of the member of the society. The government must be able to see it that its goal to achieve has applicability into the real essence of the policy.             In 2006 the government’s own publication Housing Statisitcs has reported that two hundred and thirty houses (239) council houses was built, which a sign of a big rise from the one hundred ninety two (192) council houses built in 2001-2002. From this point of view, it can be inferred that the government may have been accomplishing its goal. However, such accomplishment is not that significant to the growing demands of the society. The council houses may have been expanded  by the government but it was not enough to answer the increase on the need of the people to be sheltered.             According to Chartist (2007),  the government’s mistake has been to focus on short-term interventions rather than long term investment – and their interventions have been primarily about assisting certain types of key workers, mainly teachers and NHS staff to access the market by giving them interest free loans or grants, rather than actually increasing supply. These interventions have further inflated market prices, assisting some key workers to leapfrog over other. Several authorities have also pointed out the said government mistake. Such mistake is attributed to the fact that the government has not primarily giving much priority to its housing policy thus; its implementation is not treated to be responsive to the actual need of the society. The focus on the short-term interventions, as perceived by this author, may provide solution to the present problem of the housing aspect of the country however, it is not as productive for the future. The government must likewise study on the factors that will be attributed to future problems of the housing program of the government. The government must see to is that it is preprared on answering the current and future housing problems.   CONCLUSION             The aforementioned arguments posed by the author came from several numbers of authorities. As the author researched on these arguments it has found out that majority of the people does not approve of the development of the implementation of the housing policy. Ironic, to say, that the United Kingdom as perceived by other states to be one of the progressive in term of economy but lacks focus into one of the main factor that has been affecting its economy.             As mentioned, the housing projects of the government plays a vital role into the economy because of the number of profit that it may gain thru the allocation of such houses to its constituents. However, because of its poor implementation of its housing polices there has been no positive to its economy. The only effect is that because the housing units are not enough to meet the demands of the people because of insufficient supply of houses then the price will go up.             The author highly suggests that the government must refurbish its objectives with regard to its housing policy.  It must also have an strict implementation of its housing policies so that goals will be met effectively.      BIBLIOGRAPHY: Conway, J., 2000, Housing Policy, Gildredge, Eastbourne, England. Cowan D., & Marsh, A., Two Steps Forward: Housing Policy Into the New Millennium, The Policy Press, United Kingdom. Mc Lennan, D,. 1995, Housing to 2001: Can Britain Do Better?, Housing Policy Debate. Stewart, J. 2005, A Review of UK Housing Policy: ideology and Public Health, School of Health and Social Care, United Kingdom. Wells P., 2004, New Labour and Evidence Based Policy Making, Centre for Regional Economic and Social Research, United Kingdom.   ELECTRONIC RESOURCES: Labor’s housing policy failure; Monetary Policy Committee; viewed once; available at <http://www.conservatives.com/tile.do?def=news.story.page&obj_id=93376>, 13/05/08. Doing Mrs. Thatcher proud; Chartist; viewed once; available at <http://www.chartist.org.uk/articles/britpol/may05bowie.htm>, 14/05/08.

ECONOMIC ARGUMENTS LABOUR HOUSING FACILITIES SINCE 1997

ECONOMIC ARGUMENTS LABOUR HOUSING FACILITIES SINCE 1997 INTRODUCTION This is a report outlining the different argumen...

Commercial Applications of Company Law in Malaysia

Commercial Applications of Company Law in Malaysia Question 1             The advantages and disadvantages for Mal and Lisa on their plan the conduct the Smallco Graphics through a company will be dependent on the Malaysian Companies Act 1965, the law regarding the incorporation of a company in Malaysia (Incorporation of Company in Malaysia 2005).  Thus, it is important to take note that the Company law in Malaysia is based on the English company law, and also influenced by the Companies’ law of Australia (Furtado and Kazi n.d.).             The primary advantage for Mal and Lisa is that they will be able to acquire funds in easy manner by exchange of share ownership or loan from a financial institution. This is important because, one of their primary problems is the financial aspect (Radient 2008). Aside from that, it will also offer limited liability for the shareholders (Stokes and Wilson 2006) because they are protected by law, thus the liabilities o the members of the company will only be limited to the capital which they contributed to the company, therefore their personal assets will not be affected (Radient 2008). Therefore, the personal assets of Mal and Lisa will be protected. Aside from that, the existence of the company will not be threatened by death or even personal bankruptcy of one owner (Stokes and Wilson 2006); therefore, the Smallco Graphics can continue its operation in the future (Bendrey, et al. 1996).             On the other hand, the advantages is the fact that it will be more time-consuming and expensive to set up (Stokes and Wilson 2006) because a Private Limited Company is subject to more rules and regulations and must always abide by the rules and fulfill the different terms set by the Companies Commission of Malaysia. Aside from that the company must also pay corporate tax, and hire qualified Auditors to audit, complete and maintain financial statement, thus the financial condition of the company must be transparent to the general public. Above all, there are different costs to be considered such as authorized capital, professional fees, filing charges, the printing of the company’s Memorandum of Associate and Articles of Association, shares certificates and company’s seal (Radient 2008). Question 2             Limited liability is a condition under which a partner or shareholder of a business secures himself from bearing a loss that is greater than the amount he has invested in a company or partnership with the limited liability. Thus, if the business experience loss, the maximum a shareholder can suffer, is that he or she may lose his entire original investment, and the loss cannot be extended to his or her personal assets. Furthermore, if the assets of the company are not sufficient to discharge all of its liabilities, the creditors cannot claim the remaining part of their receivables from the personal assets of the shareholder (Taqī Us̲mānī 2002, 103). It was mentioned that the liabilities of the members in a company are only limited to the local shares that s contributed to the capital of the company. Thus, personal assets are not affected in spite of what happens to the company (Radient 2008).             In the case of Smallco, regarding their transaction with the ComCo, Lisa and Mal will not be personally liable, because the limited liability create a valuable right to default on obligations to the creditors (Fabozzi and Peterson 2003, 606). The said situation will not be the same under partnership because general partnerships do not offer liability protection. As a result, Lisa and Mal will be personally liable and responsible for all the business debts and the creditor can collect a partnership debt from any partner, regardless of which partner incurred. On the other hand, a written partnership agreement can apportion liability among partners, how it won’t absolve individual of personal liability (Mancuso 2008, 48).             On the other hand, regarding the responsibility of the company towards the landlord and the bank, it is important to consider the fact that there is always an exception to the rule. There are some cases where in directors and shareholders are being required to pay money owned by their company. Like in the situation of the Smallco, when a bank or other lender lends money to a small company, especially those newly formed one, it often require principal shareholders to agree to repay the loan from their personal assets, if the company fail to do so. Therefore, Lisa and Mal are personally responsible and liable to the landlord and the Bank (Mancuso 2008, 49). Question 3             Based on the different factors which are associated to the lost of Subco, it can be said that all of these are connected to breach of duty of care, skill and diligence by the directors of the company. First is that the executive appointed by the board to manage the project were not familiar and does not have experience in the said project. As a general rule, a director must have at least, rudimentary understanding regarding the business, thus, must be familiar with the fundamentals of the business, where in the business is engaged (Tomasic, Bottomley and McQueen 2002, 371). Therefore the issue about the food contamination scares which affected Big Bakers and loss due to failure to ensure, which is considered as a common business practice, can be considered as unreliability of the Director. In connection to the performance of the appointed executive, it is important to consider that it is the responsibility of the directorial management to monitor the performance of other executive. It does not require a detailed inspection of day-to-day activities, but a general monitoring of corporate affairs and policies. It is important to take note that director is not an ornament, but a vital component of corporate governance (Tomasic, Bottomley and McQueen 2002, 371). In addition, the executive exaggerated the sales figures in his monthly report in order to cover his fault. It is important to consider that director must act honestly and in good faith in the interests of the company (Salim 2009).  Therefore, the director may not shut their eyes to a corporate misconduct and then claim that because they did not see the misconduct, they did not have a duty to look (Tomasic, Bottomley and McQueen 2002); therefore, the issue about monitoring is always an important factor. On the other hand, the decision of the Director and the boars regarding renegotiation of the leases on a number of key supermarket sites, the Director forgot the fact that her right and duty of deciding where the company’s interests lie and how they are to be served may be concerned with different important and vital practical consideration and judgment (Tomasic, Bottomley and McQueen 2002). Question 4             Tommy Tang as the Director of Subco forgot that corporate boards have two major fiduciary duties: duty of loyalty and duty of care. The duty of loyalty means that the directors should act in the interests of the company, and not in their own interests, while the duty of care requires the directors to try to make good decisions (ADBInstitute 2009). The law duty of care focuses on the things and factors which the Directors owe to the corporation and its stockholders by inclusion of a clear and unambiguous provision in the certificate of the incorporation, while the duty of loyalty focus on good faith (Mathias, et al. 2000). In case of failure in fiduciary duties in proper manner, the shareholders can resort to different actions including petitioning for the dismissal of directors and auditors or even the injunction of illegal acts of the Directors and filing derivative suits or class action suits for damage done to the company or even the shareholder (ADBInstitute 2009). This is connected to the duties, responsibilities, care, skill and diligence of the Directors, which primarily focus on the role of the Director in maintaining good governance inside the organization. Tang enables to pursue his selfish acts by means of insider trading. According to Bursa Malaysia Securities Behad, insider trading is the purchase or sale of a company’s securities affected by or on behalf of a person with knowledge of relevant but non-public material information regarding company. The insider is in a position to make massive gains by the process of selling or buying securities before information that might affect price of the security of the company (Mohammad Hussin, Mohd Herwan Sukri; 2008). This has been done by him by buying the share of the family members at 85% and then selling it to the Listco at a price that is higher than what he gave to the family. As a result, he will earn something out of the information which he accidentally heard from Mr. Fearless and Mr. Goff. The main problem here is that the said information was considered as confidential, and he failed to inform the family member regarding the said information, therefore, making them believes that he’s doing what’s good for them.     Question 5             Duty of loyalty or the duty to act in good faith in the interest of the company is considered as an important factor that must be followed by directors in order to ensure their effectiveness and relativity. Based on the case of Subco towards its lending of RM20 million to its wholly owned subsidiary, Food Products Sdn Bhd., it can be said that there is breach of duty by the directory of the company.  The duty of good faith pertains on the duty of the directors to focus on the different factors which can affect their performance, through the different decisions and plans that they are implementing.             In the case of Listco, it can be said that the director and the entire board exhibited breach of duty to act in good faith. Primarily, it is important to consider that in order for a director to act in good faith, it is important for them to decide with accordance to the benefit of all the shareholders who are involved. Directors are in a position of trust within a company, thus they are required to act in their best (Duties & Reponsibilities 2009). If we are going to look at the problem, it can be said that the director and the board are no practicing any plan which is against the duty of good faith, this is because all of them were consulted about the recommendation for Food Products. However, if we are going to look at the situation in-depth, we will see that the director and the boards are not being fair and equal with all the shareholders. This is because of the fact that the recommendation will help Food Products Sdn. Bhd. to develop new products which will enable them to gain more profit for Listco, which is somewhat reasonable because Listco holds 73% of majority of the entire ordinary shares in Subco. The question lies on the part Tang Family, who holds the remaining ordinary share. The company will use part of its budget or finance in order to be used by Food Products, without any interests and benefits. It will be unfair for the Tang Family. It is important to consider that the position of the director on the company property which includes money, assets and other important information is equivalent to that of trustees. Therefore, the directors should not allow their personal interests and their duty to the company to conflict (Duties & Reponsibilities 2009). The said situation will be different if Listco will be able to release funds, with no interests for Food Products, because they will gain the greater benefits. Question 6             Regarding the issue of improper use of information, it can be said that there are different issues that must be considered. First, it is important to consider the decision of Frank Fearless regarding the recommendation of Gary Goff, regarding the proposal of online grocery. The problem lies on the fact that, for some reason Frank Fearless has been waiting for the right time to fire Gary Goff, as a result, he didn’t care to listen to the recommendation of Gary Goff, which in the end, and he proved that he was right regarding his proposed online grocery. However, Garry Goff is still guilty of the law rule taking corporate property information and opportunities. The Companies Act requires directors to act honestly and use reasonable diligence in the discharge of their duties all times. Furthermore, it also prohibits the improper use of information that is obtained by virtue of their position as a director to obtain, directly or indirectly, an advantage for themselves or for others, or to cause harm to the company (David n.d.). This is also connected to the misappropriation rule that is build on the underlying law conflict rule and provides that the directors must not take corporate, property, information or opportunities without the permission of the company (Mugambwa, Amankwah and Haynes 2007). Therefore, because of the fact that Gary used the information and knowledge which he have acquired during his experience in the online grocery project of the company, as well as his usage of contact list and apply it to Interco Berhad and it had affected the company in a way, it can be said that the company improperly used information that belong to the company. The least thing that the company and the Companies Act can be done for Gary Goff is for him not to be involved in the management of a company for a period of 5 years of each other may also be disqualified for a similar period by order of the court (David n.d.). Question 7             As a director, Phil Peters play two important roles: agent and a trustee who controls the assets of the company (Directors' Duties, Responsibilities and Rights 2009). Therefore it is important for him to exercise judgment in decision-making. Unfortunately, he failed to do so, which resulted to the loss of Tang Supermarket. There are different options which can be done by the company towards Phil Peters, first, is that they can force him to pay for whole or part of the money, which he lent to the company. This will enable the company to regain the money. The decision whether to fire him will be decide later. On the other hand, the company can fire him after hearing his side, and after knowing that he had breached his duty of care. This will result to two lost. First are the loss of the money which he had lent to the company and the loss of an employee, skills, talents and abilities.             On the other hand, the Registrars of Companies or ROC will focus on the Companies where in persons who have been convicted of the said offences which include failure to discharge duties as a directors under the said act may not be involved in the management of a company for a period of five years thereafter, without leave from the court (David n.d.). In that case, Phil Peters will be unemployed for 5 years due to his negligence because, the said aspect will affect this reputation, and it will be hard to gain directorial position in the future. Question 8             I do not agree that section 181 of the Companies Act 1985 is just a remedy for small and privately owned companies. This is because it provides for a statutory remedy against oppression. It focus on the personal rights of the member fairly and enables a member to make an application to court for appropriate orders where the member is oppressed, prejudice or unfairly discriminated against or his interest disregarded which focus on unfairness to the concern of the shareholder. The reason why it is applicable for Rufus Tang is because section 181 is favored by more people because it gives more varieties of remedies (Leong Ho 2005, 126).               In the case of Subco, together with Rufus Tang and the rest of the Tang Family, it can be said that there is an ongoing oppression because the directors of the company is focusing only on the interests and concerns of Listco. Thus, section 180 encompasses autocratic conduct by the board, the appropriation of business, property or corporate opportunity at the expense of the company or its minority shareholders, unjustifiable failure to pay dividends and even the neglect of duty of care skill and diligence of the director (Leong Ho 2005, 126).             There are also different remedies at common law that are capable of being brought by a shareholder: personal action, representative action and derivative action. In the situation of Rufus Tang, he can take the representative action, because his family is involved. He will take action on behalf of the Tang family in order to seek remedy against infringement of their collective personal rights (Leong Ho 2005). Question 9             As the Managing Director, Jenny Johnson is the Chairman of the Executive Board and chief and considered as the principal representative of the fund (Horsefield, De Vries and Gold 1981). Thus, it can be said that she has the final says with accordance to the licensing agreement with the Sales Concept Sdn Bhd. However, it is important to consider that when Barry Boon meets Wanda West, he was considered as apparent authority, a principal can be bound by unauthorized acts of an agent who appears to have authority to act (Meiners, Ringleb and Edwards 2006).  Thus, it can be said that the possible positive impact of direct marketing system for the company, is the primary thing which motivate him to transact with the Sales Concept Sdn Bhd. without asking the Managing Director. The question lies on the validity of the said transaction. Thus, the indoor management rule can be applied or the rule which seek to protect the company against outsiders which is considered as opposite with the Constructive Notice, which protect outsiders against the company (Singh 2008, 230). According to the said rule, the transactions happened between Subco and Salec Concept Sdn Bhd. was invalid because indoor management rule applied when the board of a company had exceeded the limits on its own authority to exercise the powers of the company under the constitution, regardless if the limits were substantive or procedural (Grifiths 2005). Therefore, it can be said that the situation will be different if the one who transact with Wanda West was the head of the marketing department, because he or she has the background regarding the said department, and he or he has the authority. Bibliography ADBInstitute. 2009. http://www.adbi.org/book/2005/02/02/884.corporate.governance. asia/evaluation.of.shareholders.rights.and.effectiveness.of.boards.of.directors/ (accessed April 21, 2009). Bendrey, Mike, Roger Hussey, Colston West, Jill Hussey, and Jill Collis. Accounting and Finance in Business. Cengage Learning EMEA, 1996. David, Patricia. "Malaysia: Overview of Recent Corporate Governance Reforms." Global Corporate Governance. http://www.globalcorporategovernance.com/n_ap/299_ 305.htm (accessed April 21, 2009). "Directors' Duties, Responsibilities and Rights." Grant Thorthon. 2009. http://www.gt.co .za/Publications/Effective-directors-guide/directors_duties.asp (accessed April 21, 2009). "Duties & Reponsibilities." MyLawyer. 2009. https://mylawyer.securecl ient.co.uk/ml/ index.cfm?event=base:article&node=A76058B0D76092#link8 (accessed April 21, 2009). Fabozzi, Frank, and Pamela Peterson. Financial Management and Analysi. John Wiley and Sons, 2003. Furtado, Sophia, and Ashraf U Kazi. "A Study of Company Law in Malaysia, An Islamic and Common Law Country in Comparison with the Company Law in China, The Fastest Growing Economy of Asia." Faculty Student Global Conferences on Research & Training. http://www.facultystudentconference.org/fs_main_fra me_1_home/fs_main_frame_home_7_presentation_on_line/02_2_MalaysiaCompanyLawComparedChina_Ashraf.ppt (accessed April 21, 2009). Grifiths, Andrew. Contracting with Companies. Hart Publishing, 2005. Horsefield, John Keith, Margaret Garritsen De Vries, and Joseph Gold. The International Monetary Fund: 1945 - 1965: Twenty Years of International Monetary Cooperation. International Monetary Fund, 1981. "Incorporation of Company in Malaysia." Helplinelaw.com. 2005. http://www.helplinelaw.com/law/malaysia/company%20law/incorporation.php (accessed April 21, 2009). Leong Ho, Khai. Reforming Corporate Governance in Southeast Asia: Economics, Politics and Regulations. Institute of Southeast Asian Studies, 2005. Mancuso, Anthony. LLC or Corporation?: How to Choose the Right Form for Your Business. Nolo, 2008. Mathias, John, Matthew Neumeier, Timothy Burns, and Jerry Burgdoerfer. Directors and Officers Liability: Prevention, Insurance and Indemnification. Law Journal Press, 2000. Meiners, Roger, Al Ringleb, and Frances Edwards. The Legal Environment of Business. Cengage Learning, 2006. Mohammad Hussin, Mohd Herwan Sukri;. "Insider Traiding From Malaysian Law and Islamic Law Perspective." Azmi Law. 2008. http://www.azmilaw.com/A rticle/Article_10_&_11/Article_10_Insider_Trading-Islamic_Law_view_00102077_.pdf (accessed April 21, 2009). Mugambwa, J T, H A Amankwah, and C E P Haynes. Commercial and Business Orgnanizations Law in Papua New Guinea. Routledge, 2007. Radient. Types of Business Establishments in Malaysia - Advantages; Disadvantages. October 5, 2008. http://www.radiniz.com/blog/?p=312 (accessed April 21, 2009). Salim, Mohammad Rizal. "Company Law Reform in Malaysia: The Role and Duties of Directors." Selected Works. 2009. http://works.bepress.com/cgi/viewcont ent.cgi?article=1027&context=mohammad_rizal_salim (accessed April 21, 2009). Singh, Kunvar Bharat. "Doctrine of 'Indoor Management' and Exeptions to this Rule." Legal Service. April 8, 2008. http://www.legalserviceindia.com/article/l203-Indoor-Management.html (accessed April 8, 2009). Stokes, David, and Nicholas Wilson. Small Business Management and Enterpreneurship. Cengage Learning EMEA, 2006. Taqī Us̲mānī, Muhammad. An Introduction to Islamic Finance. BRILL, 2002. Tomasic, Roman, Stephen Bottomley, and Rob McQueen. Corporation Law in Australia. Federation Press, 2002.

Commercial Applications of Company Law in Malaysia

Commercial Applications of Company Law in Malaysia Question 1 The advantages and disadvantages for Mal and Lisa on their ...

Case Study Analysis of Nike

Case Study Analysis of Nike               Originally known as Blue Ribbon Sports, Nike, Inc refers to a major publicly traded sportswear and equipment supplier based in Beaverton, Oregon, USA. Nike was founded in January 1964 by track athlete Philip Knight and his coach Bill Bowerman. It officially became Nike in 1978s and it was during that time that various organizational changes internally happened for the purpose of aligning with the external requirements. A very competitive organization, Nike is a global brand with its Swoosh as the most recognizable logo. Gaining a valuable coverage is critical especially because of the fact that Nike makes a very lean organization, and a virtual chart organization makes it easy for the company to bring together functions, processes and activities. In this report, Nike’s organizational nature and dynamics will be explored. Several organizational changes that occurred in response to environmental changes will be also discussed. As a virtual organization, Nike shared core competencies and resources for the purpose of better responding to emerging opportunities. Virtual organizations like Nike utilize the virtual structure or modular network to outsource manufacturing. The company owns no manufacturing facilities and is keen in moving production when the needs arise. Nike had dispersed members that is linked using advanced technology. Nike believed that through modules or networks a strong mechanism of horizontal linkage greater cross-functional coordination could be achieved. Other organizational structure could not provide Nike the flexibility. Vertical structures could show only the functionality of Nike’s networks hence only formal relationships while horizontal structures would not be advisable since few rules are permitted. This would be impossible for Nike where functions are geographically-dispersed. Though both can tap efficiency and learning, Nike had its own idea of improving the flow of information from Oregon to other units globally.             In a virtual organization, the core business activities are reduced in scope, leaving other entities to focus on some of key business functions (Heneman and Greenberger, 2002). Nonetheless, the core business functions can still be diverse or limited like that of Nike. Nike’s organizational core structure is tied with marketing and design, with much of the rest being outsourced. Hatch and Cunliffe (2006) suggested that it is natural for virtual organizations to outsource wherein networks of people whose connections take place primarily or entirely via electronic media is the basic level of interaction. What sets Nike apart from its competitors is the fact that it does not invest on buildings and facilities. The company manufactures whenever they can produce high quality products at the lowest possible cost. Further, Nike has a strong research and development foundation with evolving and innovative product range as evidence. Nike, however, is dependent on profits on footwear market which could be exacerbated by volatile retail sector and price sensitivity.             Nike is considered as the largest and most profitable show manufacturer in the world. Nike’s success relies on the network structure that Nike founder and CEO Philip Knight created, allowing the company to produce and market shoes. Basically, the virtual organizational architecture that would allow Nike to focus on some functions such as design and leave others like manufacturing to keep costs low and to give the company greater flexibility. By far, the largest function of Nike Oregon is the design function responsible for pioneering innovations in shoe design while the rest of the major functions are scattered in Southeast Asian suppliers like China and Malaysia. Strategic alliances are important aspects of Nike production particularly since 99 million pairs of shoes manufactured annually are made through such.               Moreover, the network structure provides Nike two important advantages: quick responding to changes in sports shoe fashion and low cost. Nike makes use of a global IT system that can literally change the instruction it gives each of the suppliers in real time (Jones and George, 2003, p. 232). As such, within a matter of short period its foreign manufacturers are producing new kinds of shoes. Nike’s cost are also low because of Southeast Asian labor are a fraction of that of its US counterparts. With Nike’s ability to outsource and use foreign manufacturers keep the headquarter’s structure flat and flexible. This relatively inexpensive functional structure to organize its activities enabled Nike to obtain talent and resources worldwide.               Although the virtual structure provides high flexibility for Nike to be responsive to market trends and changes, Nike is hindered by the loss of hands-on control of several functions and employees. Considerably a hollow organization, Nike has a weakened organizational culture and employee loyalty. Inherent risks are also evident including relationship management and contract partner failure and/or business exit. True enough, Nike is faced with minimal tasks environment but with international environment that is otherwise conflict-laden and competition-pressured. While in the internal environment Nike is considered as a technological innovator; technological capabilities also make a standout within the athletic shoes industry.             Globalization, as such, not only requires Nike to globalize its communication technology but also contributes to ever-fiercing competition thus the continued product innovations (Frenkel, 2001). Stonehouse et al (2004) notes that continuous product development is considered necessary because Knight believes that there is a seven-year brand cycle within the athletic footwear industry. Nike combated the perils of globalization through embracing a continuous business model without sacrificing the core design of its products. Pal (2008, p. 265) describes Nike’s business model that transformed into a network-centric organization using information technology to better equip coordination among its more than 800 partners in over 52 countries.             Technology has created a fierce competition within the industry and it is the only way to innovation. Luo (2001, p. 227) maintains that Nike monitors the industry for changing trends and often leads it in product innovation. Public is increasingly becoming aware of new technological improvements in footwear as well hence increasing stability, support, comfort and performance are at the core of Nike’s research and design. Nike adapts to rapidly changing environment through the use of technology. Likewise, Nike also capitalizes on healthier lifestyles of the people although the industry in general is in its mature stage of the industry life cycle. Further, major threats for Nike are government regulation especially those that attacks the corporate social responsibilities (CSR) and ethicality of Nike, and also economic downturns and changes in shoe fashion. All these makes high end shoes like Nike an unaffordable luxury good.             Moreover, Nike faces tough competition with Reebok and Adidas with the former focusing on quality and not quantity and strategizing for increased international sales. Possibility of new entrants, nonetheless, is not significantly high and established companies could easily venture into an athletic footwear line. These companies, however, might be trendy but must be guarded with the demands of the athlete. Nike is an organization that had long-term contracts with professional and collegiate athletes then running expensive television and magazine advertisements. Aside from contracting agreement with individual teams, Nike settles agreements with the entire sports league which enables the company to enter and market itself in growing industries using existing industrial leaders and popular sports.                Going back to CSR, Nike had faced dilemmas of unethical treatment of its labor force hence in the manufacturing aspect whereby sweatshops make most of the production units. Virtual organizations adhere into environment uncertainties that require buffering, boundary spanning, strategic alliances and co-opting, and Nike understands this very well. However, various unethical criticisms necessitated Knight to rethink its organization. Heal (2008, p. 168) points out the responsibilities of a Western company outsourcing to a poor country. Frenkel (2001) termed the process as the international contracting wherein a buyer-driven commodity chain is apparent. In such an arrangement, the lead firm, in our case Nike, is a brand name merchandiser in a developed country. Nike orchestrates the procurement, manufacture and marketing of athletic shoe products manufactured in developing countries. Because Nike is propositioned at moderate to high uncertainty and is an unstructured organization, it is easy for Nike to fall prey of the changes in the environment. What made Nike to proactively respond to its global environment was the pressure anti-Nike activists are imposing the organization (Wokuch, 2001). The problem of poverty wages and working under extreme pressure for long hours prevail. Nike institutionalized itself by becoming more responsive when cases of labor rights violations in specific suppliers are brought to its attention to improve the conditions of the worker in supplier factories. This is normative considering that Nike is being pressured by cultural expectations (DiMaggio and Powell, 1983). Using Myron Chartier’s change management model known as change by rational problem solving, Nike felt the need and decided to do something about it. Nike tried at defining the problem and discovered that wages are not only the central of these criticisms but also health and safety laws, and laws guaranteeing human rights. This prompted Nike to take unprecedented step of listing all of its subcontractors and admitting that it was unable to ensure that they all comply with its labor standards. Disclosure was attempted through cooperative monitoring. Nike then searched for promising solutions and applied one or more promising solutions to the need. What Nike did was to bring together the industry through setting up standards and communicating such through a code. Nike sought at disclosing its supply chain while also investing in and improving communities where productions are in existence. Those suppliers that are not in favor of the new agreement are quickly replaced, as a way of symbolizing that Nike is serious with its endeavors. Since this will be fairly ineffective if Nike will do it alone, the role of Fair Labor Association (FLA) to conduct unannounced audits for five percent of the supply chain annually, amounting to at least 40 independent audits of Nike factories. Non-compliance with the requirements of FLA means dropping out of such factory. On a broader scale, Nike encouraged the industry to embrace and agree on common standards because of the fact that Western sports organizations can have different and potentially conflicting standards. Coercibly, Nike is pressured to conform to various rules and laws imposed by different states worldwide.              This was mirrored in Nike’s Code of Conduct, setting standards for partnerships by seeking contractors who are committed to best practices and continuous improvement in areas of employing management practices that respects the rights of all employees, minimizing impact on the environment, providing a safe and healthy workplace, promoting the health and well-being of all employees. Core standards hence are forced labor, child labor, compensation, benefits, hours of work/overtime, environment, health and safety and documentation and inspection (Hartman, Arnold and Wokutch, pp. 145-146). This is a process wherein Nike determines, and continued doing so, whether the problem is solved satisfactorily. In particular, SHAPE that stands for Safety, Health, Attitude of Management, People Investment & Environment was conducted. SHAPE is performed also for a new production factory that desires to establish a relationship with Nike. To say, there is no need for Nike to repeat the problem solving cycle since the problem had been solved from a supplier-centric point of view. All in all, Nike as a virtual organization had cultivated various unethical practices unintentionally which had driven Nike to rethink its organization and how Knight conducts his business. Nike received and was attacked by various labor activists and advocacy groups because of its direct involvement with sweatshops particularly in Asian countries. Knight responded to such condemnations by means of introducing codes and programmes that will bind Nike and its suppliers to uphold fair labor practices.  References DiMaggio, Paul J., and Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organization fields. American Sociological Review, 48: 147-60. Frenkel, S. J. (2001). Globalization, athletic footwear commodity chains and employment relations in China. Organization Studies, 22(4): 531-562. Hartman, L. P., Arnold, D. G. & Wokutch, R. E. (2003). Rising above sweatshops: innovative approaches to global labor challenges. Greenwood Publishing Press. Hatch, M. J. & Cunliffe, A. L. (2006). Organization Theory: Modern, Symbolic, and Postmodern Perspectives. Oxford: Oxford University Press. Heal, G. (2008). When principles pay: corporate social responsibility and the bottom line. Columbia University Press. Heneman, R. L. & Greenberger, D. B. (2002). Human resource management in virtual organizations. International Associated Press. Jones, G. R. & George, J. M. (2003). Essentials of Contemporary Management. McGraw Hill Professionals. Luo, Y. (2001). How to enter China: choices and lessons. US: University of Michigan Press. Pal, N. (2008). From Strategy to Execution: Turning Accelerated Global Change Into Opportunity. Springer. Nike Watch. Retrieved on 22 July 2009, from http://www.oxfam.org.au. Stonehouse, G., Campbell, D., Hamil, J. & Purdie, T. (2004). Global and Transnational Business: Strategy and Management. New York: John Wiley and Sons. Wokuch, R. E. (2001). Nike and Its Critic: Beginning a Dialogue. Organization and Environment, 14(2): 207-237.

Case Study Analysis of Nike

Case Study Analysis of Nike Originally known as Blue Ribbon Sports, Nike, Inc refers to a major publicly traded sports...