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External and Industry Environments' Analysis Report for Toyota

A Report for Toyota Motor Corporation TABLE OF CONTENTS             1 Executive Summary                                                        2             2 Introduction                                                                       2             3 Overview                                                                            3             4 Environmental Analysis and Commentary                 4             5 Organisational Analysis and Commentary                 5             6 Gap Analysis and Strategic Alternatives                      7             7 Strategic Options and Choice of Strategies                 8             8 Implementation Plan                                                       10             9 Evaluation Plan                                                                11             10 Recommendations                                                        12             12 Conclusions                                                                    13             13 Reference List                                                                14             Executive Summary             Toyota has become the leader in hybrid cars manufacturing. The Toyota Prius has long been credited as the car which started it all.             Toyota believed in hybrids because of the superiority of the technology to the internal combustion engine. Such technology allows all powertrain improvements in diesel, gas, electric or hydrogen to incorporate into car production. Thus, hybrid powertrain has the most ability to continuously improve (2005).             As an emerged technology, software bugs are not surprising the automotive sector and even in conventional vehicles, system glitches are becoming more common.             In lieu with this, this report aims at providing the Toyota Motor Corporation the strategic alternatives and options available in the market, the environmental and organisational analysis and proposed sample implementation and evaluation plans. Introduction             A typical passenger car has 70 or more tiny but powerful computers on board that control audio systems, air conditioning, brakes, air bags and scores of other tasks. The software for an average car can have more than 35 million lines of code. Hybrid cars need to control separate gas and electric power sources and doses require a 100 times or more the code needed (2005).             Hybrid cars use multiple computers significantly compared to conventional automobiles. The Toyota hybrid cars, which have been in the global automotive industry since 1997 in Japan and 2000 in the US, are using MULTI IDE and C/C++ compiler to develop engine and transmission control software (2005).             However, many analysts and auto executives are continuously questioning the hybrid technology. Yet, still, why does Toyota continue?             Toyota believed in hybrid cars as well as continuous improvement or the kaizen. Things have changed because of competition and Toyota must always seek to improve in order to get better and thus, compete (2005). Overview             Automakers spend $2 billion to $3 billion a year fixing software glitches (2005). In October 2005, Toyota recalled 75, 000 Priuses in the United States due to a number of reports that the cars were inexplicably stalling on the highway ( 2007). Thirty-two percent of auto warranty claims in the United States are because of software or electronic-related issues (2005).             The owners of the cars were asked to take their vehicles to their dealer in order to fix a potential software glitch. “If the gasoline engine stalls, the electric motor in the vehicles will have enough power to allow the driver to pull the vehicle over and away from the traffic”, according to Toyota.             A “programming error” was found in the computer systems of 23, 900 Prius cars sold. The Prius hybrid cars urge a software upgrade in order to fix a few lines of buggy code. Apparently, the computer system of the cars is needed to be reset. After the procedure, hybrid car drivers complained of the reduced mileage ( 2007).             The software update was provided free-of-charge. Such update is intended for 2004 and 2005 Prius models. The US National Highway Traffic safety Administration investigated the incident. There have been no injuries or accidents reported due to potential software problem. However, potential buyers for the Prius made leery of the car (2005).                Environmental Analysis and Commentary             The mission of Toyota is to attract customers for life. Their ambition – to become the most admired sales finance company for all stakeholders. The vision of the company is not to be no. 1 instead to become the most successful and respected car company in the world.             Externally, the Toyota belonged to the transportation equipment industry and its market is the public companies trading. There are a total of 26 competitors for Toyota. The top three are: Ford Motor, general Motors and Honda. These competitors are also offering a wide array of hybrid cars. By this, we can analyse the hybrid system and environment as below: Remote Environment (factors that originated beyond Toyota company’s operating situation) <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Hybrids have complicated technology that is difficult or expensive to fix</li> </ul>      Every car today has packed with complicated electronics and computer chips. Working on a hybrid cars requires a specialized training for the mechanics. Dealership may only have one or two mechanics trained on hybrids      Expenses-wise, hybrid-specific components have extremely long warranties. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Hybrids have technical problems like stalling and sputtering</li> </ul>      Such concern stems from the case of the recalled Priuses. The gasoline would sometimes shut-off at the most unexpected times. The problem was pointed as faulty program logic ( 2007). Industry Environment (factors that affect Toyota company’s prospect) <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Hybrids do not pay for themselves to justify their premium cost</li> </ul>      According to Consumer Reports, it would be difficult to justify the process of purchasing a hybrid car for economic reasons. As the report states, for a five-year ownership period, only the Honda Civic Hybrid and Toyota Prius could save the money.      The higher initial cost and fast depreciation were the reasons that hybrid cars don’t save owners money. However, some vehicles will save enough to pay for extra cost as indicated by the new tax incentives.      Through simply accelerating and braking more gently drivers can save more. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Hybrids do not offer the driving performance needed</li> </ul>      Compared to non-hybrid cars, hybrid powertrains are more fuel-efficient. Such efficiency could mean getting more power out of the same amount of fuel or using a same-sized engine more efficiently while also gaining extra power and quickness.      This can be provided by Honda Accord Hybrid and Toyota Highlander Hybrid only the latter offer more responsive acceleration.      In contrast, the Toyota Highlander Hybrid cannot save as much fuel as they could with smaller gasoline engines unlike Ford Escape Hybrid and Honda Civic Hybrid. These two models offer power that is more adequately for daily use. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Hybrids will not hold a resale value</li> </ul>      Toyota Priuses have high resale value but are not sold on near-new prices as stories claimed. The factors which affect the high value are the unique, hybrid-only vehicle with eye-catching design and Priuses are produced and sold in low volumes. As a used car, the Prius has more in common with the Mini Cooper than a Ford Escape Hybrid SUV in terms of holding such value ( 2007). Operating Environment (factors that influence Toyota company’s competitive situation) <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Hybrids have limited battery pack life</li> </ul>      Hybrid batteries function without ever being fully charged or discharged. A regular gasoline-powered engine assisted by an electric motor run the hybrid vehicles. During braking and idling, the battery is charged by the gas engine.      Toyota and Ford claim fleet use of hybrid vehicles lasting over 100, 000 miles --- Toyota claims over 200, 000 miles for a few vehicles.      Besides, hybrid components including batteries have extremely long warranties. Toyota guarantees 10 years or 100, 000 miles for all hybrid-specific components on their vehicles. Ford and Honda both guarantees hybrid user with 8 years with 800, 000 – 100, 000 miles. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Hybrids do not get the level of mileage promised</li> </ul>      All vehicles could have 15 % fewer miles per gallon than the EPA estimate. At any rate, calculating gas spending based on EPA estimates actually underestimating a wide margin ( 2007).   Organisational Analysis and Commentary             The Toyota company is a public company with $202, 864 million 2007 total sales and 299, 394 employees. Toyota is below industry average in both sales satisfaction and customer satisfaction.  There is a need to focus on plant quality and flexibility. This reflects the unusually high number of product recalls over the past couple of years.              Toyota Motor outsold General Motors in the first quarter of this year. Toyota sold almost eight million cars in the world. Toyota’s stock market value is roughly 30% of the value of all global carmakers combined (2007). The target of selling by 2010 is 10.3 million. The Japanese carmaker is currently expanding production throughout Asia, Europe and US (2006). The Toyota’s organisational ethos had helped in penetrating the #1 position:   Strengths <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> High level of research and development</li> <li class="MsoNormal" style="text-align: justify"> Firmly committed to hybrid powertrains</li> <li class="MsoNormal" style="text-align: justify"> Committed in launching new products and to lean manufacturing and quality</li> <li class="MsoNormal" style="text-align: justify"> Kaizen, jidoka, muda, munuzukuri and genchi genbutsu as key principles</li> <li class="MsoNormal" style="text-align: justify"> A culture of teamwork, respect, challenge and just-in-time</li> <li class="MsoNormal" style="text-align: justify"> Competitive service price-wise to dealers</li> <li class="MsoNormal" style="text-align: justify"> Very focused segmentation, targeting and positioning</li> <li class="MsoNormal" style="text-align: justify"> Diversified product range</li> <li class="MsoNormal" style="text-align: justify"> Consensus management style</li> <li class="MsoNormal" style="text-align: justify"> Constantly re-engineering and redesigning models (2006)</li> </ul>   Weaknesses <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Retail operations</li> </ul> Ø  Selling approach <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Dealerships ( 2006)</li> </ul> Ø  Poorly-designed showrooms ·         Expensive costs investments on car plants ·         High costs of training and retaining labour ·         Time to accommodate ·         Faulty front suspension systems ·         Software/programming glitches ·         Tend to not wanting to admit a problem publicly ·         Stretched management resources or training new hires to understand Toyota Production System (TSP) ·         Difficult defect-tracking procedures Opportunities <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Emphasis on the importance of quality over cost-cutting or pure design</li> <li class="MsoNormal" style="text-align: justify"> Improve customers’ buying experience</li> <li class="MsoNormal" style="text-align: justify"> Utilize the Internet in making attractive offers</li> <li class="MsoNormal" style="text-align: justify"> Explore to be a one-stop shop for customers’ financial requirements</li> <li class="MsoNormal" style="text-align: justify"> Investment in hybrid R&D ( 2006)</li> <li class="MsoNormal" style="text-align: justify"> Revisit quality measures</li> </ul> Threats <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify"> Cars can be replicated by competitors almost immediately</li> <li class="MsoNormal" style="text-align: justify"> Heavy competitions from traditional banks</li> <li class="MsoNormal" style="text-align: justify"> Fluctuating economic and political conditions</li> <li class="MsoNormal" style="text-align: justify"> Exchange rates movements narrow margins</li> <li class="MsoNormal" style="text-align: justify"> Exposure to any movement of raw materials</li> <li class="MsoNormal" style="text-align: justify"> Product recalls </li> <li class="MsoNormal" style="text-align: justify"> Economic disturbances</li> </ul>                 Gap Analysis and Strategic Alternatives             The global automotive sector has a deepened, growing concern regarding the inadequacy of developing and implementing software models. It is necessary for every automaker to produce efficient softwares for hybrid vehicles’ mission-critical systems.  However, the industry has no solid means of blending the disciplines of car manufacturing and software development (2005).             The repetitive process of recalling Toyota hybrid cars with software glitches is an indication that there might be something wrong with the quality control of the products company-wide. Toyota did their own software development in-house and thus, having control over upgrades as a clear advantage ( 2005). Further, the prevailing business operation can be described:                               In lieu with the consistent recalls, the Toyota must: a) focus on software quality, b) have an in-house software assessment task force/department, c) facilitate a specialized training for hybrid cars mechanics, d) maximize control over upgrades, e) if necessary, conduct routinely quarter or mid-year software assessment of newly-installed softwares and f) initiate an industry-wide higher-level software standards.             Toyota hybrid vehicles recalls set a basis for building software standards and elevating software quality through the use of off-the-shell requirements and standardized software implementations as a commodity (2005).   Strategic Options and Choice of Strategies             Since the recalls are identified as software glitches, then the solution must focus on developing software programs that are powertrain-specific. The systems affected are engine control and transmission, body chassis and safety systems and infotainments.  For hybrid cars, applications include: 1) engine management software – to coordinate fuel, spark and other subsystems, to meet the legislative exhaust emissions regulations and to provide greater fuel economy; 2) electronic transmission control software – to monitor engine and car speed and to change engine ratios for an easier and smoother driving experience and 3) diagnostics software – to enable carmakers and engineers to test and correct engine management and transmission systems (2005).             The Toyota Motor Corporation, in order to cope up with the costs of recalls, instead of doing all the researches regarding software development in-house, the company could: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> have an in-house automotive software developers, implementers and assessors,</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> came up with a driver-friendly do-it-yourself manual on automotive software upgrading, if possible,</li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> outsource/hire a company specializing in embedding automotive software and/or even</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> divert in a partnership with an automotive software developing companies that can: overcome severe memory limits, ensure fastest execution and build bug-free applications:</li> </ul> A)   Processors in powertrain application experienced severe memory constraints. The automakers, including Toyota, must avoid buying bigger and more expensive memory parts. The software must add more features with less memory, thus, gaining a competitive advantage in complying with heavy emission requirements. Such software must have small code sizes to allow advanced compilers to shrink an application’s code size. B)   To ensure a faster execution, the software developers must increase complex software algorithms which require more processor speed. The requirements include stringent emissions regulations, advanced cruise control, better fuel-efficiency and anti-knock algorithms among others. C)   Bug-free applications include run-time error detection, mature compilers, MISRA support and automated module testing ( 2005) Implementation Plan             Most Japanese automakers, including Toyota, do their own software development. Japanese always tended to do things on their own. Other automakers like BMW, Mercedes Benz and General Motors do some in-house software development and portion-out the rest of the work (2005).             In effect, the Toyota must admit that the company faces difficulty in addressing recalls. Car manufacturing is the company’s specialty and not software development. So, it is best to have an IT company to do development task and focus on quality of the cars produced.             This could mean an extra cost for the Toyota company since they have to pay rights to use the software ( 2005). More practically, the company would benefit if highly-developed, high-performance automotive softwares will be available. The partnership will be of mutual benefit because softwares can be tested and retested on the hybrid cars. Thus, avoiding the reoccurrence of car recalls due to software breakdowns and the capability of embedded automotive softwares could be maximized since the development is accompanied by actual testing on reliable cars.             Practically, the plan must include the history of partnership, composition and linkages, legal framework and working processes and the process of limited partnership will begin by sourcing and choosing potential business partners, securing partnership requirements/documents, complying with partnership regulations and laying financial concerns including taxes. The key indicators are risk management, output, funding and workforce for both companies. The actual process of development will culminate after the partnership materializes, to illustrate: TOYOTA MOTOR CORPORATION PARTNERSHIP WITH XXX EMBEDDED AUTOMOTIVE SOFTWARE COMPANY What Who When Adopting industry-wide standards Toyota and Company XXX Week 1 Model-based Software development -do- Weeks 2-8 Code-generation Tools and Techniques -do- Weeks 9-16 Automotive Software Architecturing -do- Weeks 16-20 Automotive Software Designing -do- Weeks 21-24 Automotive Software Engineering -do- Weeks 25-28 Quality Assurance, test Strategies, Verification and Compatibility -do- Weeks 29-35 Provisions for Re-testing -do- Following weeks   Evaluation Plan             We can practically say that there will be two evaluation plans: for the partnership and automotive software development. The partnership can be evaluated through needs, outcomes, processes and frameworks: Evaluation Indicator How the Indicator is met Assessment Score Needs (the basis of entering a partnership) ü  Identified gaps ü  Workforce initiatives/demand ü  Specific outcomes that can be delivered ü  The partner is the best placed organisation to deliver the service ü  Service level Agreement           Framework (for working in partnership) ü  A signed SLA ü  Clarity in expectation/outcomes, length of contract/agreed review schedule, where responsibility lies and monitoring requirement ü  A clear work plan ü  Outcomes of the work plan ü  Development of partnerships           Partnership Process (effective maintenance of partnership) ü  Clear demonstration through regular reviews ü  Clear guidance in place ü  Meeting the agreed outcomes and performance ü  Adequate financial management systems in place ü  Meeting the agreed requirements as expressed in code of practice on funding and procurement           Assessing the Internal and External Impact & Outcomes ü  The original partnership objectives are being met ü  Quality of service being delivered as evidence of effective partnership ü  Meeting the wider corporate priorities and community aspirations ü  The cost and resource does not outweigh the benefits ü  Outcomes are promoted and demonstrated to the local community           (Based on: The Partnership Evaluation Tool)               The program should be assessed based on the objectives of adopting industry-wide standards, coding techniques and tools, software architecture, design and engineer and quality control, testing and verifications. The automotive software development program can be evaluated through:                               Recommendations             The abovementioned alternatives, solutions and options are automotive software-specific. Company-wide, the Toyota must also develop clear customer service standards, sustainability strategies and policies-targeted at core products or services. In addition, the preparation of a target-based timeline where performance can be judged and held accountable must be a priority (.).             There should be a progress on external reporting. The company leadership must be vocal and committed. The Toyota can also purport on stakeholder consultations and publication of results. Stakeholders must participate to meet environmental and societal needs related to core business (rady, n.d.). Conclusions             As automobiles become more technologically-advanced, an issue of interest would be the tolerance for the new technology. The hybrid cars performance has been remarkable and predicted by analysts as ‘here to stay’. Currently, the hybrid system was dubbed as the technology of the millennium.             First, the Toyota has to admit that something went really wrong along the process. Software glitches are not a problem solely for the company. It is an industry-wide dilemma that is needed to address immediately. Somehow, it had open opportunities of exploiting the hybrid technology. , Chairman of Embedded Software Standards, believes glitches are of similar features and software quality must be ensured industry-wide (2005).             Second, the Toyota hybrid cars have a pre-existing reputation.  Its presence on the global automotive sector is building intangible brand value. The company has strategized in a long term focus and the Prius is making money for Toyota.             Third, the Toyota has an image that can be easily maintained. Technology can be replicated quickly. General Motors or DaimlerChrysler cal always attempt at counter launching a competing product. The Toyota knows have a counter-relaunch of a more advanced versions and sell more (2005).             Finally, the Toyota company acknowledges shortcomings and work on it privately as much as possible. Such shortcomings are identified and analysed quickly and then communicated with the customers on the basis of time quality.             Quite simply, the Toyota company fosters responsibility and accountability or sustainability aspects in a holistic and principled-approaches ( 2006).

External and Industry Environments' Analysis Report for Toyota

A Report for Toyota Motor Corporation TABLE OF CONTENTS 1 Executive Summary ...

Collaborative Practice within the Organization or the Health Care Institution

Collaborative Practice within the Organization   Introduction               In 1992, The American Nurses Association has set the working definition of collaboration as “a collegial working relationship with another health care provider in the provision of (to supply) patient care” (2004).  This essay is going to tackle the significance of collaborative practice within the organization or the health care institution, among its health care professionals. The succeeding discussions provide its resolution by utilizing the concepts of organizational culture, team building, organizational conflict and its management, and effective communication.    What Is Collaborative Practice?               Collaborative practice is the application of interventions and therapies that require the knowledge, skill, and expertise of multiple health professionals (2004). Collaborative practice and its interventions require critical thinking and decision making. When encountering collaborative interventions, the nurse does not automatically implement the therapy but determine whether it is appropriate for the patient. Every nurse faces an inappropriate or incorrect order at some time. The nurse with a strong knowledge base recognizes the errors and seeks to correct it.               Through collaborative practice, the nurse along with other health care professionals taps the best resources to individualize nursing interventions. During collaboration, the nurse includes the patient, family, and members of the health care team. In addition, the nurse also reviews previous clinical experiences and priorities to select nursing interventions that have the best potential for achieving the expected outcomes. With the contributed experience of every member in collaborative practice, health care interventions and processes become more efficient and experience based.   In order that patients become beneficiaries of optimum health care interventions there is therefore a need for multi-disciplinary collaboration between clinicians and other health care providers. The foundation of this collaboration is education. Clinicians, patients, administrators and politicians need access to the new concepts of pain and its management in order to start realizing this goal (2000).   Shared leadership is a collaborative team process in which team members share key leadership roles (2004). Shared leadership is empowering employees to act autonomously, be decisive at the point-of-service, and create a shared vision aligned with organizational goals. Shared leadership development and autonomously practicing nurses appear to be the equation for success in delivering quality patient outcomes in today's organized health care delivery systems. Employees must develop or refine new behaviors and skills in empowerment, facilitation, negotiation, systems thinking, and accountability on behalf of patients (2002).   Shared leadership is a way to strengthen continuous learning and enhance relationships between leaders/managers, health care staff and patients, which are the foundation upon which the nurses can develop a new type of relationship with management and with each other. This in turn could significantly improve the work environment. There is an emphasis on ‘relationships’ since these relationships can be tenuous at times as both managers and staff members adopt attitudes of contention and competition with each other.   It is clearly recognized that collaboration between health professionals is fundamental to the provision of quality health services, whether the collaboration and consultation may take place via telephone, radio, facsimile or the internet, or in a high level intensive care unit in a tertiary referral centre (2000). This is central to the facilitation of partnerships in health care.   What Is Happening Now?               According to  (2002), customer satisfaction, workforce quality, and of course, the rickety economic conditions are the areas that need to be improved. It is believed that  (2002) account has a bearing on the nursing profession in direct or indirect ways. It may resonate clinical governance, but it is related with collaborative practice. The subsequent paragraphs are about to extract the main point of the essay – the need for a collaborative practice within health institutions.             Hospital Authority (2003) has reported that the Hong Kong Special Administrative Region (HKSAR) government aimed for a budget cut on Hospital Authority. The Hospital Authority (HA) has suffered a tremendous pressure from the government to minimize health care burdens. HA has responded by changing its nursing personnel as a means to cut costs or reduce budgets. Teams that were working productively have been changed overnight. It has been natural to see well-trained and experienced staff resigning or retiring early and has been replaced by technical or unskilled staff with little or no experience at all. Frontline staffs have been stretched to their limits both in terms of numbers and in terms of psychological stress (2004).   According to  (2002), the reason behind is the inability to handle stress and an unsupportive management. To illustrate further, a very experienced Registered Nurse (RN) is being replaced by a health care assistant, who had a minimal nursing training. Unfortunately, HA has not required technical experience to replace operation room nurse. As a result, there is fewer and fewer experienced, trained and skilled staff in a team. This leads to many difficulties in a team working together.             When all team members are relatively inexperienced, it is believed that they are prone to errors. In effect,  (2002) findings can be considered accurate. Being prone to errors further implicates that the hospital is not delivering quality health care services. Aside from that, among the health care providers themselves, low morale and stress emerge as a consequence of work overload especially to existing staff. The existing staff is burdened with heightened responsibilities, cannot communicate pleasantly, and collaborate with fellow colleagues. Adding up all these things, it only becomes a losing situation for everyone.   Organizational Change               Organizations are shaped by their culture, which include assumptions, values, norms, organization members, and their behaviors. They are also shaped by characteristics, which include strategies, technologies, structures, and processes. Where there are people and technologies, there are organizations. There are four key elements that define organization: (a) people and their roles within the organization; (b) the purpose of the organization; (c) the work activities; and (d) a person's working relationship with the organization (2005). Everyday our lives are touched by some element of an organization, whether it is a visit to the doctor, a board meeting, or forming alliances on an uninhabited island. Organizations as structures of action have approaches which focus on the circumstances determining the actions of individuals in organizations. A great deal of organization theory has been criticized for its normative (in this case pro-managerial) bias; for its individualistic analysis of the members of organizations (that is, for being more informed by psychological, than by sociological perspectives); and for embodying an inadequate analysis of how wider relations of power and control in society affect and are affected by organizations (in other words for concentrating mainly on the internal exercise of managerial authority and attempts to subvert it) (1998).             The world that organization theory seeks to analyze and describe has changed in some important ways. Four of the more significant changes are (a) the increasing externalization of the employment relation and the development of the "new employment contract," (b) a change in the size distribution of organizations, with a comparative growth in the proportion of smaller organizations, (c) the increasing influence of external capital markets on organizational governance and decision making, and (d) increasing salary inequality within organizations in the United States, compared both to the past and to other industrialized nations (1997).   When a health care organization is not practicing collaboration, an organizational change is needed. Collaborative practice needs to be the norm within the health care institution. It is suggested that health care institutions have to be one of a task culture and role culture too. The former contemplates on completing the job instead of looking at the ways to do it, which refers to the latter. Task cultures require “speed of reaction”, flexibility, creativity and teamwork, while role culture places a premium on the rules, hierarchy, authority, etc. of the organization (1986, 2006).   The rationale behind undertaking both concepts is because both of which fits in what this essay is proposing – collaborative practice within the health care institution. Health care professionals in collaboration need to recognize each other’s roles (e.g. dietician, physical therapist, surgeon, etc.) because they are armed with specific specialties. They need each other to resolve public health concerns through a group performance, i.e. teamwork, which will be further discussed under the subheading – Team building. Health care professionals should follow the procedure of collaborative practice and focus on achieving their desired end-goals.    Team building               Collaboration requires the efforts of a health care team. A health care team usually consists of a nurse, physician, nurse practitioner, and social worker. Such teams usually operate in a primary care clinic in the inner core of a large city. Like most primary care clinics, its patients are a mix of relatively healthy individuals and the walking wounded ( 2000).   Features of effective teams are cooperative management and mentoring of all members of the care team. Multi-disciplinary health care organizations provide a rich environment for collaborative research, teaching and clinical practice (2000).   Similarly, continuing education opportunities can be provided in support of currently practicing professionals wanting more training in teamwork and collaborative skills. This could take the form of general workshops on the knowledge and skills necessary for effective team-building, as well as more individualized team development and process consultation. In most cases, currently practicing professionals have little background or training in teamwork, yet they are often thrust into situations where they are expected to work as part of a collaborative health care team ( 2000).   Conflict within Team               We cannot expect people to leave their evolved behavior at the door when they enter any environment; gossip, dominance, harassment, and status seeking behaviors permeate organizations and create conflict, intimidation, and jealousy. These behaviors cannot be eliminated, but they can be understood and considered when creating organizational policy. When considering one's position in an organization, it is advantageous to be socially intelligent, which can be thought of as being skilled at social networking, knowing whom to trust, and being able to form powerful relationships. Such can be an element in a health care organization or team.             Consider the differences in the power structure of a health care organization, even in health care teams. In any given health care system, there is a pecking order wherein everyone has a clear place. Each person has a position that may give him or her authority over others, but they must be accountable to those higher in the power structure. In a group therapy environment, all participants are equal. They all have thoughts and experiences to relate, and the intent is to have a situation wherein everyone benefits mutually from the sharing of thoughts and experiences offered by each member (2004). From such a hierarchy alone, it is inevitable that there might be a clash of views that might cause conflicts within a team.    (2001) recognizes a duality of outcome behind conflict wherein, it is either functional or dysfunctional. In essence, that of which brings positive feedbacks such as innovations within the organization in various aspects or improvement of decision-making, and individual or group performances fall under the functional outcome of conflict. On the other end, job stress and dissatisfaction, decreased exchange of verbal/non-verbal interaction, poor job performances, a pronounced opposition to change, organizational members in distrust, and low commitment to the organization are the manifestations of conflict’s dysfunctional outcome ().  This only leads us to the significant idea that conflict is not a concept to be feared, for it is not negative at all times.  It actually contributes to the good of the organization too.              If conflicts occur within teams, it is important that the group resolve it. Managing teams begins with creating a positive team environment in which team members envision and understand what proper conduct includes. Establishing clear, realistic expectations of acceptable behavior provides purpose and direction for instilling and maintaining discipline. If the members of the health care team are involved in making these decisions, they will be even more likely to conform to team standards ( 1996).   Effective communication is the foundation for managing most team problems and conflicts. Negative attitudes related to jealousy, resentment, or distrust may be avoided or minimized through the establishing an effective communication system, which shall be discussed in the next part.   Communication             Communication is a lifelong learning process for the nurse (2004). Nurses make the intimate journey with patients and their families from the miracle of birth to the mystery of death. It is necessary to build therapeutic communications for this journey.             Nurses communicate with other people even under stress: patients, families, and colleagues. Nurses function as patient advocates and as members of interdisciplinary teams in a collaborative practice. They may have different ideas about priorities for care, but they would still collaborate to make the best intervention for a patient.             In addition, within a collaborative practice, nurses must be assertive to ask the right questions and make their voices heard. Being assertive to communicate one’s own needs endures balance in a nurse’s life. Without such balance and communication, the high-stress environment may contribute to burnout and diminish the nurse’s effectiveness.             Despite the complexity of technology and the multiple demands on nurses’ time, it is the intimate moment of connection that is happening in communication that makes all the difference in the quality of care and meaning for the patient and the nurse. Here we see that communication is essential not only between nurses and other health care professionals but also between nurses and their patients.             Nurses interact with many individuals in the course of their profession. Competency in communication helps the nurse maintain effective relationships within the entire sphere of professional practice and helps meet legal, ethical, and clinical standards of care. Failure to effectively communicate causes serious difficulty, increases liability, and threatens professional credibility ( 2004).             In collaborative health care teams, the dimensions of communication most often discussed relate to issues involving personality clashes, role overlap and conflict, and the effective use and sharing of clinically important information. Absent is an examination of underlying problems with communication based on the professional differences among health care providers, including how they acquired particular values over the course of their education and subsequent clinical work experience. These values are related to their orientations both to the patient and toward each other ( 2000).   To summarize, effective teamwork requires good communication. Frustrated team members often express concerns about its quality and extent. As in any relationship between people, the ability to "keep the lines of communication open" in a collaborative health care team is an important indicator of effective teamwork skills.   Conclusion   A collaborative practice among health care providers or professionals should be the institution’s guiding framework.  Health care providers, e.g. physicians, therapists, etc. and health care assistants alike should deliver health care service to their clients hand in hand among each other.  They have to work together as a united team.  Conflicts are inevitable, but these can be fixed through recognition of each other’s status/identities, and of course, effective communication.  Apart from effective communication, there has to be mutuality among them, and eventually trust.  When health care providers trust and consult each other’s views in making decisions to a certain problem, then they are said to be in a collaborative practice.

Collaborative Practice within the Organization or the Health Care Institution

Collaborative Practice within the Organization Introduction In 1992, The American Nurses Association has set the ...

Financial Policy Assignment

<li class="MsoNormal" style="text-align: justify"> 	Investment Decisions. A 	Critical Evaluation of the impact on shareholder wealth of the techniques 	used for the appraisal of capital budgeting projects.</li>   Investment appraisal is a strategic decision-making process for determining how a firm’s management should allocate limited capital resources to long-term investment opportunities. Investment decisions will not be made in isolation from other business decisions and plans; the question of strategic fit arises. Accordingly, investment decisions should be made in the context of the firm’s strategic business plan, with the goal of maximizing the long-term market value of the firm and the realization of its strategic objectives. The investment decision-making process involves identifying, evaluating and implementing long-term investment opportunities which will enhance shareholder wealth and achieve the firm’s objective (Mcmenamin 1999). The costs and benefits of these investment opportunities will be spread out over time. Because the outcome of long-term investment decisions, more so than any other type of business decision, will directly affect the firm’s future and its value, it is vitally important that investment proposals are properly evaluated before they are implemented. The essence of investment is to forego present consumption of resources in order to increase the total amount of resources which can be consumed in the future. The objective of an investment decision is to acquire an asset for less than its value, this way corporate or personal wealth can be increased. Acquiring an asset for at least its value will maintain wealth or value. It would not make good financial sense to acquire an asset for more than its value as wealth would be eroded (Mcmenamin 1999). From the corporate firm’s point of view the financial manager’s objective should be to invest in projects which add to corporate and shareholder value. The problem is that at the outset it is often difficult to determine which assets or projects will be wealth enhancing and which will be wealth reducing. All the more reason people should employ good appraisal techniques and procedures to help us make the right choice. For a wealth-maximizing business enterprise, the most common form of investment is in real corporate assets. Such assets are clearly very important since, for most firms, they represent the largest financial investment and are the key earning assets of the firm. In business, investment decisions are made for many reasons, but although the motives may differ, the techniques used to evaluate them are essentially the same (Mcmenamin 1999). The fundamental benefits of investment decisions are derived in its ability to present numerical evidence as a basis of decision-making.  However, even though there are many types of computing for the appraisal of capital budgeting projects, the firm should consider the method that best define its business and factors affecting the wealth of the shareholder. There are numerous types of computing for the appraisal of capital budgeting projects and these are payback, net present value (NPV), internal rate of return (IRR) and accounting rate of return (ARR). Basically, payback period method is advantageous when a firm tightly adheres to the time value of money concept, that is, the money to be received in the future has higher risks and lower value than the same amount of money on-hand today.  This becomes crucial when a firm is bound to be acquired in which its objective is not to maximize profits rather minimize the time required to recoup investments (say) for a period of two years in which it is also bound to be formally acquired.  Alternatively, its computation ignores time value of money due to the absence of discounting cash inflows to find their present values (Mcmenamin 1999 p. 359) unlike NPV or IRR.  Nonetheless, it is used frequently because it is the most popular and easily understood investment appraisal techniques (p. 357).  Easy it is because it is internally-driven from the view and subjectivity of the firm preventing technical calculations and market research in favor of the “fastest way to recover investment” rule.  .      On the other hand, the key in determining NPV is the discount rate.  Used in capital budgeting, NPV is the most dynamic and widely used method in evaluating long-term projects.  Its major criteria state that “projects that have positive NPVs are worthwhile while those with negative are not”.  But NPVs are not perfect.  Although analytical tools like net present value (NPV) are helpful, the greatest obstacle to minimize the need for working/ physical capital to be able to enhance free cash flows is not guaranteed.  There is some work to do even after computing for NPVs.  By locating inefficiencies and value-adding activities, deferral or elimination of projects that can be a deceptive action (due to savings) can be re-analyzed to locate possible opportunities that are kept untapped (Copeland & Ostrowski, 1993).  NPVs are simply the summation of discounted annual cash flows of a project.  It is derived after the net income of the project is illustrated (e.g. expenses like marketing costs are deducted or non-cash transactions like depreciation expense are brought back to the net income).             Apparently, the calculated IRR shown should not be used to rate mutually exclusive projects, but only to decide whether a single project is worth investing in. With this, we may say that in cases where one project has a higher initial investment than a second mutually exclusive project, the first project may have a lower IRR (expected return), but a higher NPV (increase in shareholders' wealth) and should thus be accepted over the second project (assuming no capital constraints). IRR presumes reinvestment of optimistic cash flows during the project at the same calculated IRR. When optimistic cash flows cannot be put into the project, IRR overstates returns. IRR is most excellent for projects with singular optimistic cash flows at the end of the project stage.  If the computed IRR is larger than the exact reinvestment rate for provisional cash flows, the appraisal will overrate — at times very extensively — the annual equal return from the task. Then again, accounting rate of return (ARR) is the rate used by an organization as a standard expected return on their investment calculation. Basically, ARR gives a quick estimate of a project's worth over its useful life. ARR is derived by finding profits before taxes and interest and its purpose is for comparison. The major drawbacks of ARR are that it uses profit rather than cashflows, and it does not account for the time value of money.   	<li class="MsoNormal"> 	Financing Decisions</li>   Impact of Debt Introduction to Capital Structure Using the financial reports, the level of a firm’s financial risk is assessable which means that the firm can identify if financial resources are able to pay planned or on-going financial commitments or not (Mcmenamin 1999).  In this way, the firm can make decisions and implement strategies according to its financing ability.  This upper hand is worthy not only because it places the firm in a safer stance but more importantly it is able to control one side of the general risk confronting a business (financial side) which relaxes problems emerging from the uncontrollable business/ environmental risks.  With this, the survival of the firm is protected by capital structure (CS) as internal consequences of a firm’s strategy are detected.  Questions such as “Do we have enough money for the project?”, “Is there a need to borrow or issue shares?” and “What is the gearing ratio to be adopted to maximize the potential of the project?”  This facility has also its implications on corporate ability to forecast, exploit and mitigate environmental changes and even apply influence over its gradual evolution.  This can achieve merit by using the resource-based model of above average returns wherein core competencies are matched against the changing environment (Hitt, Hoskisson & Ireland 2003 p. 22).             Using CS as the basis for project planning and implementation, the firm can enjoy the computed future earnings without interference from pending obligations to creditors or shareholders.  This is important for project cash flows to be obtained all throughout its life span because creditors can sue a company when debt contract or shareholders’ expectation are not met.  As an example, in the early years of US operations of News Corporation (the owner of Twentieth Century Fox), its CEO and financial officers faced difficulty to calm its creditors and defer lawsuit that can substantially disrupt its corporate life in the US (Hill, Jones & Galvin 2004 C101).  The company’s debt came from its huge acquisition costs on most American-owned media companies where some are unsuccessful to meet their expected earnings.  This case shows how lack of financial planning can provide a big headache for (expanding) firms.  However, through CS, this highly-owned family company may have give-up some of its control in favor of equity financing.  Thus, it may have prevented the last minute plead and risky confrontations to its creditors.                       In general, debt financing is cheaper than equity financing because it is a tax allowable expense (Mcmenamin 1999 p. 16).  However, it is also more committed (thus, risky) because repaying includes the principal and interest and it is mandatory even if the company results to a loss.  In addition, too much debt can discourage shareholder and their funds from entering the firm’s coffers because ordinary shareholder is only awarded with the profit residual after the creditors are paid (p. 16).  In the contrary, focus on equity financing can be unacceptable (in the case of News Corporation) or not strategic because the firm can loose its identity as it also looses control to major corporate decisions.  When company’s shares are concentrated to one entity on the market, it may also face hostile takeover.  This literally is one way to say that the original company has already perished. The fundamental benefits of CS are derived in its ability to present numerical evidence as a basis of decision-making.  However, even though there are many types of computing for the cost of capital, the firm should consider the method that best define its business and factors affecting its operations.  One is the capital asset pricing model which is criticized by the weighted average cost of capital.  Risk from a venture can also be attached to a single-asset or a portfolio of assets in which the method of getting the associated risk is different.  In addition, there are many ways for common stock valuation (e.g. freezing the complex content of preferred shares and the dynamic interest-bearing in debts).  This various valuation techniques are related to the regularity of the firm to issue dividends.  What if the company does not issue dividends for the current year?  Well, it should use a more challenging platform for arriving at an accurate measure of pricing the stock.  These overlapping techniques can create decision bottlenecks to the management which ultimately suggest the very important role of the underlying CS knowledge.   Impact on Business Organization             One would argue that a firm can certainly avoid debt/ equity dilemma by using its lone profits or retained earnings, thus, serving as a reduction for the need for CS consideration.  However, in most cases, such idea does not hold.  For example, Excite@Home is a daring internet service provider and an internet portal that decided to compete head-to-head with Yahoo! since its existence on 1999 (Hitt, Hoskisson & Ireland 2003).  Two years later, it declared bankruptcy as customers are dissatisfied with the service.  The cause of its downfall is the lack of coherent and clear business plan on how to operate and implement strategies.  Hence, an indication that shareholder and creditor emphasis is disregarded evidenced by lender’s demand for $50M payment on the verge of the corporate failure.  This is a situation where CS is undermined in favor of exploiting the attractiveness of then booming internet/ hi-tech industry.  In effect, the firm did not even get closer to Yahoo! or its profit target which ultimately explain how leveraging ratio should be used to protect the survival of the firm especially when profits is not flowing and financing entities are rigid or hostile.             With regards to specific types of debt and equity financing (as applied in US setting), CS consideration is also useful for the firm to achieve profitability.  Seller financing is a debt facility in which the firm can readily use a certain resource like plant through acquisition under a seller contract (UAEP 2006).  In effect, it can reduce the cost of construction and planning including shortening the time for cash inflows to pursue.  However, the contract can be customized to seller needs in which periodic payments and litigation clauses can impede contingent actions from the buying firm that may arise due to resources problem or lack of synergy.  The withdrawing aspect and ending the contract is tight which brings the acquirer in a risky position.  To avoid this scenario, the acquirer can evaluate other debt financing options such as government programs, commercial banks, mezzanine financing and asset-based lenders.              On other hand, equity financing options can also provide more attractive profitability schemes than debt options.  Initial public offering (IPO) is a financing option in which stocks are sold to investors giving them the right to receive dividends or payback after every profitable period (UAEP 2006).  As observed, IPO does not limit the actions of the firm unlike seller financing but there are cautions in the stability of investor support as especially when they are just “playing” the stock market.  Stocks are easily tradable and gains from the practice are fast.  Similar to debt financing, equity option takes other strategies to prevent sudden loss of internal funding capability due to over-speculation.  As a bottom-line, there are varieties of ways that the firm can manipulate its CS.  It can choose between equity and / or debt financing and also choose between the combinations of different types and strategies involve in the broader genre.     	<li class="MsoNormal"> 	Dividend Decisions</li>   Factors to consider in Dividend Decisions Theoretically, a corporation takes a look at its position and decides what they are going to need for operations, investments, expansions, new equipment, etc. Thus it is a kind of decision whether a company should issue a dividend or reinvest the cash into new or continuing projects. What's left over is potentially available for dividend payments. Sometimes there is nothing left for dividends, but the company wants to reward shareholders anyway so they will issue stock dividends and splits. Occasionally, a company might need an influx of cash and will sell and issue common or preferred stock. Despite the names, preferred stock usually doesn't have any voting capacity and doesn't participate in common stock dividends. What makes it preferred are that they are usually guaranteed a dividend of x amount of dollars per year. They also have priority if the company liquidates. They are treated as creditors instead of owners. A company’s responsibility is to increase shareholder value. Dividends can play an important roll in this regard. A company has to decide what to do with excess cash on its books but there are several options. They could reinvest that money into the company. This could be purchasing new equipment, hiring on new employees, expanding into new regions, etc. They could use the money to acquire another company. They could pay off debt. They could buyback their own shares. Last but not least they could pay out a dividend or increase existing dividends. It all comes down to what is the best way to return value to shareholders. Most new companies do not pay dividends because their best use for cash is to grow their business. On the other hand, many utility companies pay nice dividends due to the fact that it would be difficult to use that money to expand in that type of business. Therefore giving it back to the shareholders so that they may invest it however they may choose to makes more sense. When increasing a dividend a corporation may look at trying to set it at a sustainable level. Decreasing a dividend is usually considered a bad sign and shares tend to decrease in value. One last thing to consider is the tax environment. The lower the capital gains taxes are the more important a dividend becomes to the individual shareholders. In business, dividend decisions are made for many reasons, but although the motives may differ, the techniques used to evaluate them are essentially the same. Growth of global financial markets was further accelerated by improvements in the fundamentals, particularly by more rapid economic growth in the emerging market and matured industrial economies. It was also assisted by economic and structural reforms in the emerging market and transition economies. The portfolio framework has described that when opportunities come, decisions should not be hastily made. Different considerations have to be analyzed.   Effect of Global Financial Crisis to Dividend Decisions In the case of the current financial crisis, businesses should have careful assessment of their dividend decisions to avoid downfall. Shareholders and the company itself should have risks management. The cost of indemnity had restricted management's alternatives in dealing with the hazards faced by the organisation. With regards to the current financial crisis, HSBC of Hong Kong as example identified that one of their foremost problems was that insurers rated them according to business in such a way that a fine run firm that had few losses were required to pay for the claims of poorly run firms within the same industry. With this, the role of risk management appeared. Management began to make out that abridged losses intended reduced cost of risk. If managers reduced losses they could hold them themselves without resorting to indemnity. However, it took some time for industries to settle in management. The delicate inquisitiveness in management is the result of a number of instantaneous drifts. With the current economy, the trade and production has augmented financial and direct investment in unstable up-and-coming markets. With this we may say that risk management has also ensnared consideration as a result of the recurring and well-publicised breakdowns linked with its execution. Regardless of the amplified academic and specialised concentration paid to risk management, common instances still occur when classy investors or firms experience abrupt, unexpected, and devastating losses.             Lantos (2001) stated that corporations should have economic and legal responsibilities to the public at large due to the influence that they bestow upon the public. Novak (1996) enumerated seven economic responsibilities of firms, which are: satisfy customers with goods and services of real value; earn a fair return on the funds entrusted to the corporation by its investors; create new wealth, which helps lift the poor out of poverty as their wages rise; create (and the writer would add, maintain) new jobs; defeat envy through generating upward mobility and giving people the sense that their economic conditions can improve; promote innovation; and diversify the economic interests of citizens so as to prevent the tyranny of the majority. Legal responsibilities, on the other hand, should be to follow the law or the rules that govern firms.             Today, business like HSBC operates in a more complicated, and more regulated, environment. The strategic task, then, is to create a distinctive way ahead, using whatever core competencies and resources at its disposal, against the background and influence of the environment. Through these distinctive capabilities the organisation seeks sustainable competitive advantage. With regards to financial issue, financial evaluation and implementation of dividend decisions can be a demanding exercise. With this, we may conclude that is difficult to foresee what the future holds (e.g. the actual future outcome may be entirely unexpected), i.e. to foresee what the scenarios are, and to assign probabilities to them; and this is true of the general forecasts never mind the implied financial market returns. However, this is an important procedure because it enables the organisation to make decisions that will be advantageous and beneficial to the shareholder of the company. In addition, organisations that are open to change and willing to counter the current financial crisis are generally more successful compare to companies that resist it. On the other hand, corporate leadership in accordance to their of power focuses on the techniques and expertise of efficient organisation, planning, direction, financial planning, credit assessment and control of the operations of a business is really vital. In this ever changing global business environment a company must be competitive and do everything it can to counter any threat from its competitors. Having a good shareholders gives the company some edge in facing competition in the business environment.  In examining issues of companies’ initiatives to counter financial crisis, we may argue that it is integral to any business’ success. We may also wonder how the economy would affect businesses if there is action towards the current crisis we are facing.    References:   Case 10 “News Corporation: entering the US pay TV industry.” (C101) in the textbook: Hill, CWL, Jones, GR & Galvin, P 2004, Strategic management an integrated approach, John Wiley & Sons, Milton, Qld.   Hitt, M, Hoskisson, R & Ireland 2003, Strategic Management: Competitiveness and Globalization, 5th Edition, South Western; Thomson Learning, Singapore.   Lantos, GP 2001, The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, Vol .18, No. 7; pp. 595 – 630.   Mcmenamin, J 1999, Financial management: an introduction, Routledge, London.   Novak, M 1996, Business as a Calling: Work and the Examined Life, New York: The Free Press.   UAEP 2006; Fitzgerald Institute for Entrepreneurial Studies; viewed on 20 February 2009, <www.uakron.edu>

Financial Policy Assignment

Investment Decisions. A Critical Evaluation of the impact on shareholder wealth of the techniques used for the appraisal of cap...