Corporate Social Responsibility
Examination of the CSR Strategy
The most verified economic advantage of operation corporate social responsibility (CSR) strategies is connected to areas such as operational cost savings, branding, company status and human resource (Tzu 17). This paper therefore will be looking at what an operational CSR approach involves via investigating the strategy’s usefulness at Hewlett-Packard (HP). The Corporation’s plan looks at the worldwide social and environmental issues utilizing their portfolio and skill in dealing with difficult problems. Such consist of enhancing the ease of access and quality of education, improving energy productivity and also ensuring healthcare is progressively easy to get, inexpensive and available. The corporation undertakes such problems all-inclusively, going further than disjointed as well as quick fixes solutions. These facets prove that HP has been working on a useful CSR approach that has witnessed the corporation being rated amongst the topmost Fortune 500 corporations. This paper, as a result, will be founded on the thesis that ‘Hewlett-Packard has an effective CSR strategy.’
Effective CSR Strategy
An operative strategy ought to hold a social drive that is business centered. Majority of CSR approaches in numerous corporations overlook the basics of a corporate like its operation. HP’s strategy is, as a result, useful due to the fact that it is convincing as well as apparent, whereas backing an inclusive corporation’s strategy. Hewlett-Packard (HP) in the corporate approach emphasizes on turning the company into the topmost IT Corporation globally. The corporation’s aim is apparent as well as motivating to their worker. HP has in the same way created three self-reliant approaches incorporating capital plan, efficiency to accomplish their purposes as well as targeted development. The company’s CSR efforts back their usual business roles like production, marketing as well as sales to name but a few. Many other corporations, nevertheless, are not sure which objectives they ought to create or approaches to undertake (Wheeland 1).
Operational strategy ought to have an intense effort whereby a corporation looks at a particular goal every time. Backing most social problems all together fails to accomplish success on their CSR strategy. HP, nevertheless, has shown guidance in their approach by concentrating on their efforts on a particular social problem dealing with communal difficulties through education, healthcare as well as entrepreneurship. The firm brings into line this social problem to their in-house and exterior means. In 2011, for instance, nearly 1.2 million individuals merited from the Hewlett-Packard (HP) entrepreneurs learning initiative (HP LIFE), which let the people reach technology and also real teaching. The same year, about 744,000 workers from HP offered to serve the communities worldwide at the cost of $26 million US dollars.
Uniting with professionals is in the same way an imperative facet of an operational CSR strategy. Leadership, in addition, requires building a great echelon of integrity. This can be ably undertaken through relations with professionals in social matters and NGOs. The corporation utilizes their wide portfolio, professionalism as well as technology to hunt for the means of administering particular globe’s social difficulties and associates together with states, corporations, social businesspersons, NGOs, scholars and selfless leaders to aid in mounting accessible, viable solutions to CSR. HP has united with numerous shareholders in their solid efforts to encourage viability. The company’s efforts have been shown via numerous accomplishments the firm has reached via such associations (Hur 7).
HP has a incessant venture with the ‘Business of a Better World’ (BSR) to improve the supply chains’ working situations, certainly focusing on those situated in China. In 2007, for instance, HP in association with China Training Institute as well as BSR improved the ‘Focused Improvement Supplier Initiative’ (FISI). This project provides 40 top-levels distributors to HP with the assets as well as tools focused on improving CSR management in their amenities (Hur7). Moreover enhancing the working situations, the program as well emphasizes on teaching the people in administrative positions as well as employees. The venture incorporates their social evolution worth into their general whereas their managerial exercises as well as ethics push their economic merits in the advancement of their social or environmental situations.
The above debate backs the thesis that ‘HP has an effective CSR strategy’. Numerous ways via which the corporation’s CSR strategy works are a complete evidence of its usefulness. The company controls the global social as well as environmental problems and difficulties via their portfolio and expertise in dealing with challenging issues for instance encouraging quality learning, guaranteeing the cost-effectiveness or easy reach of exceptional healthcare whereas improving energy productivity. HP deals with these problems in a general way, away from the simple conventional solutions.
Wheeland, Matthew. “HP CSR Report Highlights Helping Customers Solve Green Challenges.” Greenbiz.com News. 10 May 2011. Web. 15 Nov. 2013.
Tzu, Sun. “Building your CSR Business Strategy.” CSR Management Journal, 1.1(2011):13-24.
- “Social Innovation.” Global Citizenship Report 1.1(2011):146-156.
Hur, Eileen. “Hewlett-Packard’s Global CITIZENSHIP Program Social and Environmental Responsibility (SER) Program: The Model of CSR Alliance with Profit, the Corporation’s Ultimate Goal.”CSR Management Journal 1.1(2012):1-16.
From a wide-ranging viewpoint, cultural dimensions allude to psychological scope, or value concepts that are sometimes used to expound a certain culture. On the subject of international corporations, majority of the individuals hired are from different backgrounds as well as cultures. In most situations, this fundamental idea of change is termed as an exceptional resource for majority of the corporations. This is founded on the idea that it acts as an exceptional base for encouraging modernization. Nevertheless, there are circumstances where short of suitable data as well as comprehension of different cultures these modifications lead to problems more than it results to triumph. In essence, it is thus crucial to have a simple comprehension of variances in cultures so as to enhance accessible labor as well as lessen skirmishes. Diverse nations have numerous cultures concerning work and business in general. This research will be concentrating on disparities amongst Germans and Japanese concerning their culture towards work. Moreover, the study will as well focus on creating practical endorsements for international companies that are characterized of German and Japanese workers to be precise.
In line with Basabe et al. (20), the simple idea of diverse cultures is not wholly based on the ideas that they are casually unique from one another; however slightly vary from certain and conservative conducts. This is founded on the idea that every culture has its peculiar way of reasoning as well as exploring factors, its specific values, principles as well as different liking towards diverse features concerning work. For example, in Japan, a Japanese man and his household are regarded from the viewpoint of the organization they work for and the position they hold with regard to social status. Additionally, this is with prospects that a Japanese man might have concerning the company they work for. With regard to the study and research results, the success of entrepreneurial economies in areas for instance the United States and Europe is well-thought-out to have substituted the notion of social casting via work. Nevertheless, this is not the situation in Japan whereby entrepreneurs are not freely treasured; reasonably they are seen as peculiar or out of place.
Business cards deliberated as imperative with any respect to Japanese corporate as well as social gathering. It is termed as one of the main features that an entrepreneur ought to bear in mind when making transactions in Japan. Japanese corporate culture is dominated by the idea of lifetime working. For example, in the circumstance of being hired by a conglomerate, a young individual who has completed school, particularly tertiary education, has the notion that by the time he will have pensioned off, he will still be employed by the company. In some instances, this is the situation with small business ventures. For many years, an exceptional link has been developed amongst the members of a specified company. This is looked up as one of the distinctive features of businesses in Japan.
So as to better comprehend cultural patterns of Japan, an individual ought to consider the idea of homogeneity. There have been debates that Japan is not a homogenous nation in any aspect. On the other hand, the cultural myth of homogeneity is a part of publics and thus is an essential cultural idea. Founded on the idea that Japan is an island, it has no margins with other nations. This is one of the essential factors that have guaranteed there had been less foreign impact on the nation up to the early 1850s from the early BC. This in turn has played great purpose in making the history of Japan. In essence, all individuals share same belief; this is founded on little impact from the western nations. Additionally, assumed that it is a heavily crowded area, there is ease in sharing of data and thoughts. Japan’s homogeneity improves people’s interaction without dialect. It is said that being monolingual as well as monoracial makes room from Japanese to understand what the other is saying with less words.
In relation to Hofstede (8-10), dimensions of culture are apparent as an industry tool that is internationally recognized and is used in the gauging of cultural diversities. Frequently used dimension are Geert Hofstede’s cultural scopes. It acceptance was improved by the idea that it includes cultural information gathered from 70 diverse nations concerning IBM workers. This information were further improved with information collated from learners as well as pilots from commercial airline in 23 nations, civil service administrators in 14 nations as well as influential individuals from 19 nations. From his study Geert (70-80) created five features of cultural dimensions. This incorporates; Power distance; Individualism–Collectivism; Masculinity–Femininity; Uncertainty avoidance; and Long-term or short-term orientation.
About power distance; it includes the level to which members of an assumed culture with failrly less authority are in pact with the notion that authority is distributed inequitably. This is in precise to the idea that there is a great implication amongst individuals who have authority and those who do not hold ample power. From the overall viewpoint, the measurement apparently highlights disparity, putting into account that such a view is known from below, as well as not pushed from above (Hofstede 45). For instance, there is a high authority disparity in Japan, but this is not the situation in Germany.
With reference to individualism versus collectivism, this link includes the level to which diverse people are combined into groups or not. The fundamental theory of individualism is central in the western nations as well as other established countries. In addition, collectivism is leading in eastern nations and nations are still growing. In this incident, Japan is well-thought-out to be in a central position, but German is considered to be amongst the best, particularly to this measurement. Essentially, individualism is prevailing in Germany. In the working setting, precisely in individualistic cultures, the manager-worker relation is based on the terms of agreements, as well as appointing and confirmation of policies is based on expertise and laws. Conversely, in communist cultures, the employer-worker relation is seen from a moral viewpoint for instance family link, promotion and confirmation of policies as well as taking into account the authority of workers in groups (Triandis 100).
Individualism and collectivism have been connected with direct as well as indirect methods of interaction. In essence, the level in which presenters reveals the drive via open verbal communication. With respect to direct style, connected to individualism, the needs and goals on the side of the presenter are come to life in verbal message. When it comes to indirect style, which is connected to collectivism, the needs and intents of the presenter are not clear in the verbal message.
On the subject of masculinity versus femininity, this connection is not largely concentrated on gender purposes as the chief factor, but quite it is founded on other features for instance triumph, caring, accomplishment, modesty, completeness as well as confidence. This is particularly to the perception of culture. Achievement and assertiveness are regarded as biggest in men whereas modesty and inclusiveness are more dominant in women. In Japan their culture is based on the fundamental idea that man is the leader of a household, in regard to the point that masculinity is high in males than in females. For example, majority of the individuals who make policies in bigger corporations in Japan are chiefly men, women on the side o not concentrate on their careers, but quite on raising their kids as well as caring for their households. In contrast, founded on the hierarchical structure of Germans, masculinity is regarded as reasonable. This can be chiefly accredited to their culture that is more concerned on individualism.
As much as vagueness averting is considered, it is the measurement that it is concentrated on a presumed community’s approval of indecision and vagueness. Cultures, where the level of vagueness is high, they attempt their best to lessen the possibility of instance that cannot be expounded with suitable details. This is typically accomplished via firm regulations and guidelines that have been initiated. This is in addition to security and wellbeing actions and clear mind to ethical or religious faith, particularly regarding the perception of complete truth. One of the chief facets of cultures who lean to this dimension are the point that they are motivated by inner nervous energy as well as their nature is more expressive as compared to other cultures (Markus, H.R. & Kitayama 226-228). A feature that alludes to a vagueness tolerant culture is that they are more tolerant to diverse views and also they are thoughtful and cold. This is one of the measurements that are dominant in both German and Japan. For example, dependability as well as constancy is seen as certainly essential to and integral in German attributes. On top of this, members of the German culture have a great weakness to shun vagueness. In essence, Germans create necessary structures as well as regulations in order to spur confidence in coping with each other.
Pertaining to long term or short term orientation, it seems to be a dimension that concentrates on the chief subject of virtue. Long term cultures treasure caution as well as strength of mind; in contrary, short term cultures respect traditional mores, the achievement of social duties and guarding individual’s integrity. Japan is regarded to be a long term focused on culture, whereas German is perceived in terms of being a short term concerned with country.
Continuing from the defined dimensions above, it is fairly clear that there is a huge disparity among German and Japan customs. For example, in majority of German corporations, staff members are guided by numerous regulations, processes, laws and practices. These are a number of fundamental features that impact the German business persons to have a taste for written pacts and settlements. The fundamental feature of the arrangements and written contract is that they are typically obligatory and are used on a systematic basis. Germans have firm fines concerning breach of agreements, and this is what separates them from other cultures.
Researchers Charles Hampden-Turner and Fons Trompenaars have a more or less the same plan to dimensions of culture regarding what Hofstede has projected. They have grouped national cultures into six diverse facets. A number of them are similar to those of Hofstede, whereas others are distinctive to a certain extent (Cross, Bacon, and Morris 65). They incorporate a number of things: individualism–communitarianism; universalism–particularism; specificity–diffusion; inner direction–outer direction; achieved status–ascribed status; sequential time or synchronous time.
When it comes to universalism–particularism, worldwide cultures focus on regulations, guidelines as well as generalities; in contrary, particularistic cultures consider exclusions, exclusive circumstances, as well as responsibility established by relations. Universalist cultures, for example the one usual Germans, would not think an individual to confess that they were driving at a reasonably low speed than the real speed they were driving at. Conversely, in particularist cultures, for instance Japan, there is a possibility that an individual would concede to driving at a particular spend irrespective of whether it was slow or fast.
In connection with the relation individualism–communitarianism, this seems to be a dimension that is alleged to be similar as that put forward by Hofstede, with a relevant focus on self-accomplishment or the fulfilment of aims and intentions in a certain group of people.
In point of fact, specificity–diffusion dimension alludes to the level to which individual concentrates on the fundamentals or the entire, the direct or the framework. Specificity focuses on distinct purposes, while drawn-out cultures take in less variance amongst private and public worlds. In Ilyas Halil’s story No One to Yell At, the Turkish executive operational in Montreal fails to understand why a Christian worker sulks when they are released to get two Turkish coffees for him and a customer.
To the extent that achieved status–ascribed status relation is concerned, achievement cultures critic an individual certainly on their individual accomplishment, as well as the question that is asked is “What did you study?” Ascription cultures critic an individual particularly on their kinship, birth and relationships; the question that is mainly asked is “Where did you study?”
With reference to inner direction–outer direction correlation, it concentrates on the matter of whether an individual is inspired by inner desire as well as a sense of right and wrong, or by the situation or power of others. In essence, the question comes up that makes an individual either seek control and change their personal surrounding or adjust and move with it. As a result, for example, there is a view that boxing ensued from inner directed cultures, whereas judo came from an outer-directed setting (Cross, Bacon, and Morris 70).
In chronological time or synchronous time link, the last alludes to an arrow, whereas the second deals with a circle. In connection with sequential time, it is based on the theory that ‘time is money’. Then again, synchronous time is founded on the theory that ‘timing is everything’.
Schwartz (50) differentiates cultures on the foundation of autonomy and embedded dimensions. In autonomous cultures, peoples are seen as independent, controlled entities. They are inspired to develop and clear their personal preferences, status, thoughts as well as ability and to grow their personal comprehension as well as discrepancy facets. This might be accomplished via the quest of person’s thoughts as well as balanced directions autonomously. This is designated as intellectual autonomy. In addition, a quest of positive exposures for a person is known as an effective autonomy. On the other hand, the significance of life for peoples living in cultures of embeds is developed via social relation, through associating with a group of individual, participating in collective lifestyle, as well as driving towards combined objectives (Schwartz 50-60).
Embedded cultures place weight on protecting the status quo as well as safety measures that may interfere with in-group harmony or the traditional directive. Nations that succeed in embed; perform poorly in intellectual as well as effective autonomy. Other dimensions that Schwartz has considered incorporate the following: Hierarchy: it looks at the central point of the importance of hierarchical links in society and political system. Hierarchy is different to egalitarianism as egalitarianism points at the standard of Universalism and parity of rights of individuals.
Harmony concentrates on the significance of the competence, especially to relationships, evasion of change and conflict, while mastery places weight on self-assertion and achievement as strong principles. It is fairly apparent that a number of Schwartz’s dimensions can be connected hypothetically to Hofstede’s one-dimensional discrepancy between individualism and collectivism. A positive association exists between the level of urbanization and Hofstede’s individualism and Trompenaars’ egalitarianism (Singelis et al 255-260). In contrary, the connection between urbanization and power distance is negative. However, there is no link between this feature as well as the principles of intellectual and affective autonomy. Urbanization, which is connected to industrialization, with the development of the market, with modernization and with greater problems of social life, acts as a great influence of instrumental individualism. Fundamental facets of individualism are individual independence and uniqueness. The typical features of the Protestant work morals, which in earlier eras characterized modern and capitalism communities, are these days more characteristic of mutual communities with improved hierarchical reserve (Singelis et al 261). Moreover, this is as well in agreement with the better presence of competitive approaches in growing, collectivist and hierarchical nations for instance Japan.
It is relatively apparent that the subject of cultural dimensions is essential in any company, especially, as much as international companies are in the context. This in go, will make sure that there is parity in the company as well as sturdy relations between the workers despite their cultural background. In examining the dimension of individualism-collectivism, it is the main cultural variable that undertakes a crucial role concerning the long term development. Nevertheless, this fails to give to difference of opinion that other cultural variables have a comparative essential impact on presumed elements of economic conduct as well as economic performance (Smith & Bond 50-90). The attraction with these other cultural dimensions is that they have less impact on long term development. Therefore, so as to produce the excellent results, a corporation ought not to concentrate on forthcoming or categorizing the exceptional culture. Additionally, the corporation ought to as well consider that ranking cultures would not produce useful outcomes that can be useful to a firm. Classifying cultures is as well in a way an attempt to make reforms, particularly as for cultures in diverse nations, which is not the situation in an international corporation. The goal of comprehending diverse cultural dimensions is to create parity among societies as well as yield excellent results. This is channeled by the point that cultures are profoundly rooted on history and to alter them would take a long duration. Being acquainted with the impacts of culture on economic outcomes ought to suave the growth of improved interaction as well as discussion across culture instead of turning cultures against one another.
Basabe, Nekane, Páez, Valencia, González, Rimé, & Diener, Eric. Cultural dimensions, socio-economic development, climate and emotional hedonic level. Cognition and Emotion, 2002, Vol 16, pp103-126. Print.
Cross, Bacon, & Morris. The relational interdependent self-construal and relationships. Journal of Personality and Social Psychology, 2000 Vol. (78), pp (791-808). Print.
Hofstede, Geert. Culture’s Consequences: Comparing Values, Behaviors, and Organizations Across Nations. 2nd edition. Sage Publications. 2001. Print.
Markus, & Kitayama. Culture and the Self: Implications for cognition, emotion and motivation. Psychological Review, 1991 vol 98, pp 224-53. Print.
Schwartz, Shalom. “Beyond Individualism/Collectivism: New Cultural Dimensions of Values” Sage Publications. 1994. Print.
Singelis, Triandis, Bhawuk, & Gelfand. Horizontal and vertical dimensions of individualism and collectivism: a theoretical and measurement refinement. Cross-cultural Research, 1995 vol 29, pp 240-275. Print.
Smith,., & Bond. Social psychology across cultures. (2nd. ed.). London: Prentice Hall. 1998. Print.
Triandis. Individualism and collectivism. Boulder:Westview Press. 1995. Print
Crisis Communications and the Effect on Brand Reputation
Roughly, each day, organizations, government corporations and people come across situations they consider as crises. However, a large number of these incidences are mere routine annoyances; they do not meet the criteria of crises. More appropriately, such situations can be perceived as inevitable challenges or problems that are normal to any person or organization. However, an actual crisis is a rare experience. Nevertheless, crises do arise frequently to organizations, government institutions and individuals.
During crises times, unlike mere problem or incidence, concerns will flow from different circles with interested parties making calls that seek to understand what is taking place within an organization. In some cases, crises also threaten the actual existence of those affected. Unlike the day to day incidences and occurrences with insignificant effects on an organization, crises often have irreversible impact as such, it is important that the best mechanisms be employed to respond to the challenges. Crises can also have a negative impact on an organization causing members to be uncomfortable thus leading to decreased productivity (Griese, 2002).
In all manner of crises from societal crises like accidents, civil disorders and crimes to common business crises like negative coverage by media, litigation and customer boycotts, crisis communication plays an important role in addressing problems that cannot be underrated. Griese (2002) observed communication during and after a crises is important especially in relation to reputation restoration within an organization. The approach government organizations and corporations employ in communication during such incidences is of great importance as the kind of information they pass.
Communication with the public is of great importance during a crisis to maintain the reputation of a band. In modern days, the opinion the public has about the brand is not influenced by what one says but how they say it. Apologies and/or information is received and accepted today by the public in social media differently when compared to past traditional communication strategies.
Communication during Crisis
According to Timothy Coombs, crises act as a threat a company’s reputation. During such incidences, both product and organization brand/reputation is vulnerable to damage. Crisis affects how clients and stakeholders interact with the company. Coombs and Holladay in their works of 2005 made the observation that post-crisis communication plays an important role in repairing prevalent reputation damage. The field of crisis communication also has several case studies that attempt to explain how response strategies either lead to destruction or repair of corporations or organizations.
Coombs (2007) argued crisis management calls for “evidence-based crisis communication guidance” (p.163). Evidence that s based on guidance is supposed to be supported with scientific evidence, which should employ empirical research opposed to individualistic preferences as well as intuitive experiences. SCCT (The Situational Crisis Communication Theory) facilitates creation of frameworks that are based on facts, as such, seeking optimization to safeguard the brand or reputation as it is provided for in after-crisis communication.
While attempting to explain how an organization is able to restore normalcy in its brand, Fearn-Banks (2010) identifies a couple of steps that aid in serving to enhance communication after a crisis. The first step is upholding crisis communication whenever an organization is undergoing a crisis. At no point stop enlightening stakeholders on what is taking place within an organization or what is expected from them. The second step is development of a service or product that has the capability of promoting the brand, making sure communication plays a significant role in updating stakeholders and the consumers. While rebranding might serve as the ideal strategy for arising crises, leadership is supposed to be careful when it comes to the communication technique used in publicizing a new brand since it is at transitional stage that most organizations crash.
Fearn-Banks although argues that the third step which is reexamination of social commitments like corporate responsibility has too little to do with crisis communication, communication between and amongst stakeholders determines how successes an organization is in terms of responding to such issues. An organization in hopes of promoting its brand after crisis is supposed to use crisis communication skills in order to enlighten the society of the intentions it has in relation to activities of public relation before their position is communication from other quarters that are unreliable. The last step involves making a public announcement to the public on enhanced productivity and performance as well as revival from the crisis. Such approach is aimed at calling clients back and other stakeholders who might have lost their confidence in the said organization (Fearn-Banks, 2010).
During the Yuhan-Kimberly crises in 2005, the company’s salvation was the result of appropriate and speedy crisis communication mechanisms. The company’s management kep communication going with explanations that were timely regarding what was taking place within the organization and how it planned to overcome the difficulties. The recovery of the company’s market share was facilitated within the shortest time by communication. By 2005, February, the ‘wet wipes market share recorded 50%… and dropped to 21% two months later; however, it recovered after that and recorded 30% in June and 40% in October’ (Fearn-Banks, 2010,p.242). The observation made by the author was that 2008 annual market share was over 46%. General evaluation posited Yuhan-Kimberly’s communication program during the period of the crisis received high level of trust from spectators and stakeholders due to the concerns it expressed regarding consumers.
Though the reputation of the company was in part damaged as a result of the crisis, consumer confidence was recovered within a short duration. The unswerving and prompt response synonymous with crisis communication and reputation building program an organization employs plays a major role in quick recovery. Though the longstanding reputation of the company contributed to its recovery, this might not have been achieved without use of communication approach. Between 2004 and 2006, the company slipped from position four to six within Korea’s Management Association’s Most Respected Companies list. However, the focus of the company on image rebuilding through sharing its strategies and experiences wisely with the public to overcome crisis, the company was able to recover to the fourth position by 2006 and in 2008, it advanced to third position, a position that it maintained in the 2009 listing (Fearn-Banks, 2010).
When the crisis began in the company, the management acted swiftly by appointing its representative from whose office all the relevant communication with spectators and external stakeholders were carried out. The representative has the duty of understanding and knowing the progress of the company to overcome the crisis and followed selective communication of information to the public. He used different kinds of media including radio, magazines, newspapers, social media and telephones to promote the company while also responding to public concerns. He created great confidence among people regarding the products of the company and helped customers to see indestructibility of the company. Fearn-Banks (2010) observed that at the time of crisis, a company adopts some novel crisis prevention measures that also communicate to stakeholders thus helping a company become better and prepared to better deal with similar future crises. The prompt communication and action during crisis facilitates minimization of negative opinion that can cause long term effects on an organization.
Efficient Crises Communication
While attempting to understand the effectiveness of communication during crisis, Valackiene (2010) posited primary steps in effective communication in times of crisis are not multifaceted, though they call for work to be carried out in advance to reduce the extent of possible damage that emanates from the crisis and also redeems the institutions or organizations reputation.
Bernstein (2004) in his works on communication crisis implemented ten steps relevant in crisis communications. He posited the first 7 steps should be taken prior to emergence of any kind of crises. The first step is selection of crisis communication team which should ideally be led by a CEO and other executives at the top in an organization. Identification of representatives is the second step in which the potential of a person is determined from their previous performance. Step three encompassed spokesman training so that they can be equipped on how they will redeem the reputation and brand of the organization after and during crises. The fourth is establishing notification systems through which internal and external stakeholders interact. Identification of stakeholders both external and internal as well as disaster anticipation are the 6th and 5th steps respectively. Step seven is preparation for what will be said and the representative is supposed to develop some holding statements though full statements must wait till the outbreak of the crisis (Bernstein, 2014). These 7 steps are supposed to be ready before the crisis emerges since it might prove too late to prepare for all the steps once the crisis begins.
During the eight step, an individual should evaluate the crisis situation and in the 9th step, they should identify key messages they intend to share with stakeholders and the public. In the 9th step, focus should be addressing the crisis while at the same time seeking to promote the brand or organization. The last step is referred to as ‘riding out the storm’, and involves looking objectively at stakeholders reactions and responding accordingly without risking the reputation of the company (Bernstein, 2004). Valackiene (2010) argues that the final step demands keen observation of the trends: “Decide if another communication to those stakeholders is likely to change their impression for the better. Decide if another communication to those stakeholders could make the situation worse” (Valackiene, 2010, p. 104).
Tylenol Poisoning Case
The Tylenol poisoning case of 1982 provides the ideal crisis communication case. Tylenol capsules became impure after contamination with cyanide leading to the deaths of 7 people. The market share of the company dropped drastically from thirty seven percent to a mere seven percent. The crisis communication involved saving both lives and the reputation of the company. Some immediate actions involved putting a stop to all adverts as well as recalling over 31 million Tylenol bottle throughout the country. A team was also formed with the role of looking into consumer concerns while saving Tylenol. The team was responsible for holding press conferences and making live satellite feed in the attempt of responding to the situation.
The crisis communication approach the company used involved assuming responsibility for the crisis as well as giving assurance to the public regarding safety by recalling all capsules. Reintroduction of Tylenol was followed by discounted prices, unique and new ads as well as triple seal aimed at resisting all kinds of tempering and media presentations thus making sure the product was more renowned (prbookgroup, 2009).
How to Communicate
There were varied questions asked from different quarters during the crisis. Stakeholders in the organization wanted to know what was taking place, what triggered it and the implications as well as the kind of solution there was. Internal members of the organization like the management and employees wanted to know their fate while the government was concerned about the people, the revenues as well as implications of the crisis; the desire of external observers was to know if there was hope for the organization due to the crisis. This implies during a crisis, majority of people are interested in knowing what happens for either shared or personal interests. Beckwith noted at this juncture, crisis communication is extremely important as it determines whether the reputation of the brand or the organization is jeopardized or not. The representative is supposed to be careful regarding what they say and how they say it carries a lot of weight (Beckwith, 2006).
Beckwith (2006) also made the observation times of crisis are not easy. When something bad happens and the stakeholders of the organization are not happy with it, whatever that might be, one is supposed to face reality and approach the situation head on. One way of facing the problem is by confronting the fears one has, speaking about the issues to interested parties as well as answering any relevant questions before the crisis is leaked out through wrong media. The author argues that:
“What you say is important, but so is how you say it…. Your face should reflect the gravity of the situation. If you’re tired because of the strain caused by the crisis, it’s okay to show that: At the same time, you want to appear strong and confident so you inspire faith in your organization as well as your words” (Beckwith, 2006, p. 142).
The author felt majority of situations can benefit from compassion and confidence attitudes: The compassion is supposed to be in respect of victims and opposite views while confidence should be related to doing the appropriate thing regardless of the crisis extent.
The endeavor of maintaining organizational credibility is one f the strategies for crisis communication and brand of the product is to “share what you know when you know it” (Beckwith, 2006, p.143). When an individual is faced with hostile situation with protestors, advocates and victims , emphasizing with them is important. One is supposed to put themselves in their show in order to understand their pain, argument, feelings and predicaments regarding the entire scenario. It is by understanding their perspectives and opinion that one is able to address such interests and concerns. Failure to address what is wrong therefore can leave them more confused and concerned. “When your organization is being painted as the bad guy—whether rightly or wrongly—you are automatically in the worst position: You are guilty until proven innocent” (Beckwith, 2006, p. 143). In such a position, one is supposed to use all non-verbal and verbal clues to show empathy and at the same time, pass the point home. The point one intend to pass is supposed to emanate from strategies set for addressing the crisis. Initially, before information was gathered about the issue, one was supposed to indicate they were aware of the situation and disturbed by it thus they are investigating it and are interested in sharing what they find once they uncover it.
With the current technological advancement, one is supposed to be careful in order to ensure they have control over the information shared. Failing in addressing issues and keeping those interested in the dark often triggers presumptions and rumors which can easily be shared via social media and which affect the reputation of the organization. Regardless of the nature of crisis, communication plays a crucial role in damage control, lack of distorting messages and accuracy aid in crises communication and they preserve or redeem the reputation of the brand in question. If for instance wrong information leaks through social media, it spreads to millions of people within an hour as such, communication experts in an organization are supposed to do their best in order to control information leaving the company in such occasions. One can use media like blogs, twitter, Facebook, radio, internet and television in sending the appropriate message to stakeholders in order to counter possible negative implications of information distorted (Beckwith, 2006).
It is also of great importance for management to make sure there is no internal information leakage. The objective can easily be realized through emphasizing to all staff members that information regarding crisis is serious as such, sharing the same with friends is not secure since the information can leak to the press and lead to downfall of the company or brand (Beckwith, 2006).
While crisis are not common, they do occur once in a while in government corporations, organizations as well as individuals. The major challenge during crises is brand reputation which can be greatly jeopardized. Once an organization fail to address the issue in time, especially through communicating with stakeholders, the damage caused by such an occurrence is irreversible and at times, it leads to downfall of the organization. As such, crisis communication is crucial in such instances as it relates to having an understanding of what one will say, when they say and more importantly, how they will say it. A communication team that is led by management of the corporation or organization and with representatives who are talented is supposed to assume the responsibility of keeping the public well informed, showing concern and empathy while at the same time safeguarding the organizational image as well as brand reputation.
Beckwith, S. (2006). Publicity for Nonprofits: Generating Media Exposure That Leads to Awareness, Growth, and Contributions. Washington D.C: Kaplan Publishing.
Bernstein, J. (2004). The 10 Steps of Crisis Communications. Crisis Response, prevention, planning and, Training, 106. Retrieved from http://www.bernsteincrisismanagement.com/docs/ the _10_ steps_ of_crisis_communications
Coombs, W., & Holladay, S. (2005). ‘Exploratory study of stakeholder emotions: Affect and crisis,’ in N.M. Ashkanasy, W.J. Zerbe and C.E.J. Hartel (eds.), Research on Emotion in Organizations: Volume 1: The Effect of Affect in Organizational Settings. New York: Elsevier, pp. 271 – 288.
Fearn-Banks, K. (2010). Crisis Communications: A Casebook Approach. London: Routledge.
Griese, N. (2002). How to Manage Organizational Communication during Crisis. New York, NY: Anvil Publishers, Inc.
Prbookgroup. (2009).Crisis communication: Case Study: Tylenol Poisonings. Retrieved from http://crisiscomm.wordpress.com/2009/04/13/case-study-tylenol-poisonings/
Turney, M. (2004). Six Steps to Preparing a Rudimentary Crisis Communication Plan, 29.
Valackiene, A. (2010). Efficient Corporate Communication: Decisions in Crisis Management. Inzinerine Ekonomika-Engineering Economics, 21(1), pp. 99‐110.
Back to Your Roots
It is believable that in the past, Jack and Belinda have made some significant decisions that have lead to success of their venture Back to your Roots, a hairdressing salon. As they make plans for expansion, among the important decisions they have to make is the kind of legal structure the business is going to take (Mitchellette 125). Their structure presently has been a partnership. Their concern is on whether to carry on with that structure or set up a limited company. The decision made by these two will have a great impact on their taxable amount, amount of paperwork, ability of raising money as well as personal liability they are going to have towards the business. This report discusses their options and recommends the most ideal form of structure. In the second section, the paper will discuss contractual terms they are supposed to include while constructing contracts for employment.
Partnership refers to an implied or express agreement by 2 or more individuals to begin a common business with the purpose of making profits (Mann and Barry 572). All the partners contribute capital, skills, property or labor in varying forms in accordance to the agreement. Additionally, they expect to share profits as well as losses and deductions that arise as a result of operations. However, it does not make payment of annual income tax. Simply, it passes the losses and profits through to its partners all of whom are required to include their share of the business loss or income in their tax return.
As there is no employer who can withhold the income taxes, each partner is supposed to put aside enough money to make tax payment on their annual profits share. This implies partners must approximate the tax amount they are obligated to pay for the year as well as pay HM Revenue and Customs. Partners are also supposed to pay taxes whether the business makes a profit or not (HRMC 1).
Partnerships have an advantage in that setting them up is relatively easy and they can run for as long as partners have common understanding regarding management. Everyone has their own responsibilities according to the agreement. Raising capital is also solely the partners’ duty. However, when it comes to general partnerships, all partners are liable for their decisions, business debts and actions. This implies their properties can easily be easily in instances when the business defaults on debts. In cases of a limited partnership, some of the partners have limited liability. This means they are not liable to business debts. The 1907 Limited Partnership Act mandates that in a limited partnership, one partner is supposed to assume full liability for the venture. The 2000 Limited Liability Act defined limited liability partnerships limit all partners’ liabilities (Miller 554).
In laws of the land, limited companies have special status. These kinds of businesses are incorporated which implies they have their unique identity which is different from that of the owners. As such, they can be sued or sue or own property in their individual right (Scott 122). Ownership of a limited company is categorized in equal parts known as shares. Because limited companies have their identity, the owners cannot in anyway be held personally responsible for the debts. This means their property cannot be taken in the event their business defaults on debts.
Unlike partnerships, owners in a limited company are not required to be involved in day to day operations of the business. This implies they can enlist additional assistance from outsiders when they are in need of raising capital. The company pays tax which is a fixed percentage of profits made. Owners who get paid a salary by the business have the obligation of paying income tax (Carysforth and Neild 130).
RECOMMENDATION TO JACK AND BELINDA
Jack and Belinda, in the past ran Back to your Roots as a partnership. Their management has been successful which means the business has thrived such they have considered expanding the business, employing more staff and possibly opening salons in other locations. While the partnership has worked for them, I recommend they change their current set up to limited company.
With a limited company, they will not be involved actively in running the business. If the business expands and opens new salons in different locations, their workload is going to increase considerably. For people used to managing small premises, they will come across difficulties running the expanded business. On top of this, forming a limited company is going to ensure they raise additional capital from outside investors. For instance, they will have the option of seeking loans and using the business as collateral. Even when they default, they will not risk their personal property being taken away (Merrills and Fisher 402). Additionally, to finance an expansion, they can also enlist the business in London Stock Exchange.
With a limited company, they are going to have an identity that is separate from their business. This implies personal actions will not have any impact on the business and that business decisions are not going to have any influence on their personal lives. Their procedure for tax payment will be far less burdensome compared to how it currently is. The business will continue to exist though one of them might make the decision to leave the business. This in turn gives Back to your Roots additional security than when it is a partnership.
Contractual Terms in Employee Agreements
Validity of employment contract is not dependent on its form; it can either be oral or written. However, the 1996 Employment Rights Act mandates an employer is supposed to provide to employees a written stamen of particulars in a span of 2 months after starting a job. Therefore, it is recommendable for Jack and Belinda to come up with an agreement for employees as they seek to recruit more staff and expand. The key terms to be included in the agreement are as follows:
- The employees name and other important personal information that pertains to him/her
- The date the employee started his/her employment
- The date the employee commenced their job. This is applicable when the employee is moved to a different capacity in a demotion or promotion or when they are re-employed after redundancy or unfair dismissal
- The employee title and brief description of the job they are doing
- Length of the contract if the company is not offering employment on permanent basis.
- The salary amount, compensation, bonus structure and other privileges
- Holiday entitlement as well as the amount payable during holidays
- Number of hours the employees is supposed to work and compensation in the event the hours are exceeded or the fine if hours are violated
- Type of leaves permitted and payment during such periods
- Pension rights
- Areas the employee is supposed to work. All employees working outside the country are supposed to be furnished with details of their work conditions and the work they will be undertaking (Middlemiss 36)
- The notice length the employer is supposed to issue the employee before their dismissal. It is supposed to specify the duration an employee is supposed to notify the employer about their discontinuation of employment
- The duties and rights of both employee and employer
- Behavioral expectations of the employee
- Disciplinary actions to be followed when a code gets broken. This is supposed to include grievance procedure for employee so they ensure they are treated in a just and reasonable manner when a dispute arises (Persson 410).
As Jack and Belinda seek to expand their salon business, the most important decision they can make is the kind of legal structure the business is going to take. Currently, the structure has been one of partnership. This has brought success which has encouraged them to consider critically, the possibility of expanding their premise and establishing new salons in other regions. However, for the business to continue thriving, they need to establish a limited company. This is going to reduce their workload as well as give them an identity that is separate from their business. It is also going to enable them seek capital from external sources. Most importantly, it is going to give their salon better security in case one of them makes the decision to abandon the venture.
Carysforth, Carol, and Mike Neild. Intermediate Business. Oxford: Heinemann, 2000. Print.
Clifford, Denis, and Ralph E. Warner. Form a Partnership: The Complete Legal Guide. Berkeley, CA: Nolo, 2012. Print.
HM Revenue and Customs. “Tax returns for partners and partnerships”. HMRC, n.d. Web. 15 Nov. 2013. <http://www.hmrc.gov.uk/sa/parts-partners.htm>
Mann, Richard A, and Barry S. Roberts. Essentials of Business Law and the Legal Environment. Mason, OH: South-Western Cengage Learning, 2013. Print.
Merrills, Jonathan, and Jonathan Fisher. Pharmacy Law and Practice: Fourth Edition. Burlington: Elsevier Science, 2013. Print.
Middlemiss, Sam. “The Psychological Contract and Implied Contractual Terms.” International Journal of Law and Management53.1 (2011): 32-50.
Miller, Roger. Business Law Today: The Essentials, 10th ed. Mason, OH: South-Western Cengage Learning, 2013. Print.
Mitchellette, Ronald J. Entrepreneurial Decision Making: A Must-Read for Every Aspiring Entrepreneur. Philadelphia, PA: Xlibris, 2008. Print.
Persson, Anders J. “The Contract of Employment – Ethical Dimensions.” Journal of Business Ethics 66.4 (2006): 407-15.
Scott, Peter. Accounting for Business: An Integrated Print and Online Solution. Oxford: Oxford University Press, 2012. Print.
XYZ Remote Access Policy
This XYZ remote access policy is designed and written specifically for XYZ Healthcare Provider.
The XYZ remote access policy is designed and written with the main objective of describing the standards for people who use or connect to XYZ Healthcare Provider’s network from any host. These regulations and standards have been designed so as to minimize possible risks and damages that XYZ may incur as a result of unauthorized utilization of the enterprise services. Such potential risks and damages may include the destruction of important internal systems, loss of confidential and sensitive information as well as intellectual property and even a dent on public image, among other things.
XYZ remote access policy affects all persons that may connect or use the XYZ network including the company personnel, contractors, suppliers, agents, patients and vendors or any other individual or groups of people. In addition, the policy also applies to remote access connections that perform varied tasks on behalf of the XYZ company including sending or reading emails and scanning through intranet web resources.
XYZ remote access policy will cover remote access implementations which will include ISDN, VPN, SSH, DSL, cable modems, dial-in modems, frame relay, cable modems and any other channels that can connect remotely, with the exception of those that connect through web interfaces.
- There will be strict control of the secure remote access and this will be enforced by using a single password verification system combined with private keys with complex pass-phrases.
- All the people who access the XYZ remote connection including the staff, contractors, patients, agents and vendors will be prohibited from sharing their login details with any other persons, including their family members.
- The company will explain and help each member of staff, contractor, patient, agent and vendor who has access to the remote connections, either through company or privately-owned computers or workstations that are connected to XYZ internal network, should not be connected to any other network simultaneously.
- The company will prohibit all members of staff, contractors, patients, agents and vendors with remote access concessions who possess company or privately owned computers or workstations that can be connected remotely to XYZ internal network from sharing these hardware with anyone.
- XYZ will further require that frame relay meet minimum verification preconditions of DLCI standards.
- Prerequisite authentication processes of CHAP must be met by all the routers for ISDN lines that are specifically built for access to the XYZ network.
- It is compulsory for every remote hosts that can connect to XYZ’s internal network via remote access technologies to use updated antivirus software in addition to operating system security patches.
- Each person affected by this policy will be given a detailed report on how implementation and enforcement will take place. Training will also be carried out beginning next week at department level to provide knowledge on how to fulfill these regulations. Policy review will take place every three months.
Given that this policy is new and has never been implemented by the institution before, it is expected that employees may have difficulty adhering to certain regulations especially those appertaining to sharing login details or hardware with family members. However, violations of any regulation will be punishable and persons found to be in violation will be suspended or denied remote access privileges.
Risks of using Public Internet for Remote Access
- Private networks can be risky in terms of spreading viruses and worms because they do not guarantee full protection of remote devices from configuration and software vulnerabilities.
- Exposure to worms and malware may compromise the company’s system resulting in illegal access of the remote access connections. This may lead to the introduction of malicious codes into the organization network (Ballad et al., 2011).
- Access of the network by outsiders may be used for wrongful purposes such as obtaining private information that may enhance susceptibility to phishing attacks and ultimately, loss of information, data or money if organizations are required to pay ransom by hackers (Gregory, 2010).
Need for Remote Access Policy
- The policy ensures that each staff is aware of where, when and how to use the company’s internet and don’ts accompanied by this concession.
- Reduces or eliminates altogether exposure of the organization’s network to worms, viruses and malware from external devices.
- It enhances accountability of internet usage in the organization (Eckel, 2006).
- It ensures that the resources of the company are used for organizational needs and not personal gains (Shoemaker & Conklin, 2012).
- It stipulates actions to be taken in case employees violate the codes of ethics on internet usage.
Ballad, B., Ballad, T., & Banks, E. K. (2011). Access control, authentication, and public key infrastructure. Sudbury, MA: Jones & Bartlett Learning.
Eckel, E. (2006, July 19). The importance of a remote access policy. Tech Republic. Retrieved 11 November 2013 from http://www.techrepublic.com/article/the-importance-of-a-remote-access-policy/
Gregory, P. (2010). CISSP guide to security essentials. Boston, MA: Course Technology.
Shoemaker, D., & Conklin, W. A. (2012). Cybersecurity: The essential body of knowledge. Boston, MA: Course Technology Cengage Learning.
Information security, is very important as it helps to prevent unauthorized access or use and affects every organization including affected medium-sized enterprises. The essence of information data systems cannot be understated and they should thus be secured at all times so as to maintain their resilience and credibility regardless of challenges they face.
An electronic document security system has to be enforced together with new technologies so as to prevent leakage of important customer information from business information systems. As the management, we need to have in place open channels of creating awareness and enhance management support systems that can enhance the overall security of our medium-size online business. Creating awareness can help in reducing fraud and abuse of computing infrastructure hence increase return on investment for the business (Wright, Freedman & Liu, 2008, p. 3). By implementing the electronic document security, we will be able to control confidentiality of information sent to customers or third parties (Smallwood, 2012, p. 10).
Lack of such technologies would cost our enterprise through different illegal means and also result in loss of potential and willing investors. As the management of our medium-size online business, we have to introduce mechanisms and document security systems for preventing data loss and leakage of confidential information to our competitors. By doing this, we will not only protect our company from the dangers and high potential costs of cybercrimes, but also improve our credibility with our customers and partners.
Networks usually perform different roles, and they can be differentiated in terms of their structure, purpose, activities and results.Therefore, network activity is a technique that can be used to depict differences between activities in a particular operation or project.Some of the distinct network activities may include enforcement of relative delays, preferential caching of data, and placing limitations on the effect of administrative utilities on production work. The amount of incoming traffic flow through a firewall is usually used to monitor the differences between network activities. Anomalies in internet packet flow is used to differentiate between the different network activities and malicious activity are usually detected easily because they tend to send excessive traffic hence exhausting the legitimate resources and often targets unused addresses in the network.
Malicious network activity examples may include malicious spams, scanners, worms, and backscatters. Scanners are malicious network activities that come from a single source and usually target the same port in different machines or even different ports on one machine on the network. These will generate excess flow of Internet packet and can also be differentiated by examining the Internet packet size to show whether or not it deviates from the normal. Additionally, scanners can also be differentiated by observing the sources and destinations of the packets. While normal Internet activity possesses different source and destination addresses, the malicious and suspicious Internet activity can share similar source and destination addresses.
The signature-based approach is also used to differentiate these activities by comparing threat signatures to observed events and this helps in identifying particular differences. Malicious network activity can be distinctly identified as they usually originate from the website servers while trying to leave the network through established firewalls. These network activities infiltrate through the firewall and flow into website servers and may also leave the website servers in the nature or form of malicious activity. Compared to normal activity, malicious or suspicious activity flow is much lower.
Traynor, McDaniel, and La Porta identified two new Denial of Service (DoS) threats in cellular services for data. They exploit the link setup and destruction procedures in different networks which implement the General Packet Radio Service (GPRS) by utilizing low traffics on average terms.The first loophole entails the attack of logical channels instead of raw theoretical bandwidth, and this leads to reduction of the amount of traffic necessary to deny service (Traynor, McDaniel, & La Porta, (n.d), p. 311). Thus type of attack exhausts resources and prevents access of service temporarily and can be achieved by sending numerous text messages to a particular network sector consistently so as to ensure that the Temporary Block Flow (TBF) timers expire, resulting in denial of the network from reclamation of its logical resources.
The second loophole or susceptibility is caused by the inefficiency in accessing protocols by cellular data networks and the Internet. The denial of service (DoS) vulnerability happens as a result of similarities in the flow of network treatment, where uniform treatment of all flows regardless of size or duration shows the lack of flexibility of the cellular data network. Any slight changes in the conditions of the system can make it vulnerable to such attacks and because of its rigid design, the subsystems implement assumptions appropriate for one sub-set of traffic on every other traffic. For instance, an attack can occur when such assumptions cause the system to automatically amplify a single incoming packet to a series of expensive delay-inducing setup operations. Similarly changes in system conditions can lead to failure of execution of commands in the system. This ultimately makes the system susceptible to attacks and breakdowns.
By exchanging information between foreign and home base stations systems can authenticate or verify the details of any supplementary characteristics allocated, such as special data services (King, 1995, p. 109).Rogue base or corrupt stations imitate the legitimate base stations so as to confuse the subscribers who are legitimately trying to access services (Burmester, 2006, p. 83).Snarfing involves obtaining large documents from computer programmers without the permission of the author and it usually happens when one uses illegal means such as hacking to access the information of the other programmers.
However, eavesdropping is considered to be legal if used for the general good of the public. An example of this is the interception of the communication of terrorist groups planning an attack on innocent people or even helping in tracking stolen goods. Generally, the security goals of GSM are enhancing confidentiality and anonymity on the radio path. It also aims at preventing fraud by creating strong authentication codes and its ultimate goal is to prevent compromise of security amongst competitors with ill intentions. SMS framework is a platform where people can exchange encrypted and digitally signed text messages. Public key cryptography is usually used in this case to secure communication between private parties.
Burmester, M., Yasinsac, A., & International Workshop on Secure Mobile Ad-hoc Networks and Sensors, MADNES 2005. (2006). Secure mobile ad-hoc networks and sensors: First international workshop, MADNES 2005, Singapore, September 20-22, 2005
King, G. A. (1995). Understanding and designing computer networks. Oxford: Newness.
Smallwood, R. F. (2012). Safeguarding critical e-documents: Implementing a program for securing confidential information assets. New Jersey: John Wiey & Sons.
Traynor, P., McDaniel, P., & La Porta, T. (n.d). On attack causality in internet-connected cellular networks. USENIX Association, 16th USENIX Security Symposium. Retrieved from: https://www.usenix.org/legacy/event/sec07/tech/full_papers/traynor/traynor.pdf
Wright, C., Freedman, B., & Liu, D. (2008). The IT regulatory and standards compliance handbook: How to survive an information systems audit and assessments. Burlington, MA: Syngress Publishers.
Email and Instant Messaging
Email and Instant Messaging Proposal
Email and Instant Messaging (IM) have become essential components of the Information Technology (IT) infrastructure and companies today use these for purposes of communicating and collaborating with different stakeholders. Such technologies have been key enhancers of teamwork activities and collaboration amongst different people in firms because they facilitate communication through sharing of vital information and raising of pertinent questions. Ultimately, organizations need to use information systems such as emails and instant messaging for beneficial activities that can ad value to the firm.
IT has evolved into a key business and organizational strategy, unlike in the old times when it was treated in isolation. Lucas (2005) further reiterates this point by stating that IT should be perceived as “…. a way to help design an organization. Technology can supplement or substitute for traditional approaches to organization design”. Companies today are therefore faced with the tough decision of how to source for IT services and with this regard they can choose to outsource, insource or subcontract email and instant messaging. Fix, an IT manufacturing company (publicly traded marketplace/IPO), is currently facing the challenge of whether or not to retain the existing email and instant messaging systems or switch to other viable alternatives. The main objective of the company is to deliver quality information to all work groups/virtual teams/users/staff in both the global arena and co-located teams using a credible digital means. By carrying out the strategic evaluation of the email and instant messaging, Fix aims to catalyze communication system for the manufacturing processes. Fix must enhance its creativity and innovativeness so as to be more competitive within the marketplace as well as strengthen its organizational core competencies. The company has three alternatives to consider and these include retention of the current system, outsourcing services from other providers, and contracting IT services to a third party. After careful evaluation of the alternatives, Fix settled on contracting the management of the systems to a third party is selected as its most viable hence best alternative.
The Need or Problem
Currently, Fix channels a lot of resources towards maintaining its email and instant messaging systems. Some of the huge costs incurred include the resources spent on hiring IT staff, maintaining the mail server, and investing in upgrades or maintenance costs which add up to high costs that could be diverted to other core areas or even saved up.
The Fix management team also realized that their core business and competency lies in manufacturing activities as opposed to the email and instant messaging.
In addition, Fix also faces a number of serious security threats and scalability challenges. The company lacks the expertise and resources to monitor its systems on a 24 hour basis and neutralize any potential security threats. Other organizations that specialize in these areas are more capable of handling these challenges because they are placed to monitor email traffic and have higher capacity to handle increased traffic and provide viable network contingencies.
Fix should focus on its core competencies in the manufacturing sector and outsource the email and instant messaging services to a capable and competent third party. The third party will provide the email and instant messaging applications through the cloud technology. This alternative is considered the best because it allows Fix to exercise a lot of flexibility in terms of handling traffic fluctuations and enhances the ease of access to the applications by stakeholders in different locations, using any devices, and at the time of their own convenience. The vendor is thus responsible for adjusting the capacity of the services according to the demand, and hence can increase capacity with increasing traffic. By outsourcing, Fix will easily transfer “server and patch management, system availability, and end-user support headaches” to a trusted third party expert who can offer better and more effective services(Pearlson & Saunders, 2013). Fix, on the other hand, will be able to concentrate more on its core business.
The chosen vendor has vast experience in this particular industry and has amassed sophisticated expertise and knowledge hence is capable of providing quality service to Fix. Having achieved economies of scale, the vendor will be able to pass on cost saving services and techniques to its clients, Fix included.
The recommendation to select a third party vendor was based on the premise that Fix relies heavily on email and instant messaging to carry out most of its businesses. However, the ever changing trends in technology necessitate the need for the company to delegate and offload any extraneous functions to capable and competent third parties that can readily avail required services. This will allow Fix to focus on its main business and core competencies in the manufacturing sector.
Despite its potential benefits, outsourcing any services or applications can pose potential risks in Fix Manufacturing Company. The managerial team at the company must thus ensure that the regulatory factors regarding governance and control are clearly spelled out to vendors that are hired to provide cloud services for e-mail and instant messaging on behalf of the company. McCray (2008) explains that companies can effectively work with vendors by ensuring that before the outsourcing company begins working, it is properly introduced and an efficient sustainable plan for change is instituted as well as high level of performance standards are set in place to ensure success up to the last phase. Some of the end results of a successful or effective outsourcing contract will be depicted by excellent performance of the applications, growth of infrastructure, cost effectiveness and sustainability. Djavanshir (2005) lists the following five concerns that companies should beware of when outsourcing information systems:
- Lack of clarity regarding post-contract processes – the outsourcing procedures must be well known by everyone involved in implementing the program
- Poor support offered by client services companies – sometimes the implementation process may stall if it lacks support from the managerial team and leaders of client company especially if these persons are charged with overseeing the outsourcing process
- Poor comprehension of the contract– poor understanding of the contract can cause problems especially if parties involved fail to comprehend the terms, parameters and limitations of the contract
- Loss of knowledgeable and skilled workers or acquisition of less knowledgeable workers – this can cause uncertainty in outsourcing with regard to human resources and staffing
- Lack of necessary skills by the client company – where a company lacks outsourcing experience and necessary training on governing outsourcing, it may end up with a poor program
One of the dangers and major concerns of outsourcing e-mail services is keeping control of the whole process including filtering what goes in and comes out. The outsourcing company is in charge of choosing the location that will be most optimal and functional hence must ensure at the transferred e-mail data are in a centralized location (Baker, 2008). The option for outsourcing the e-mail means that the service will be provided via cloud and this approach may become an obstacle in the exchange of data, and hence may have adverse effects in varied departments of Fix. According to Baroudi (2012), “the use of cloud computing to run email and instant messaging, VoIP, and cell phones may create security problems for the e-mail applications” (par. 6).
Nevertheless these potential risks and challenges are outweighed by the foregoing advantages of outsourcing these services. In order to reap all the benefits of outsourcing, it is recommended that Fix contracts the services of AliComp outsourcing solutions. AliComp outsourcing offers a variety of outsourcing services that have been specifically designed to cut costs and improve services in the IT sector as depicted in Table 1 (AliComp.com, 2013).
Table 1: AliComp Outsourcing Benefits
|Services and Reliability||· Services mainframe, open system, business continuity
· Provides a robust framework for information systems
· Excellent network design
· Reliable maintenance services
|Hardware & Cloud Services Architecture||· Supported by Linux/390
· IBM Mainframe Processors
· IBM “A” Data Center
· Type II Certified SSAE-16 Standards
· Reinforced network environment
· Services to IT structure cloud computing for applications
|Cloud Security||· Cloud security controls to deter, prevent, correct, and detect threats
· Provide identity management
· Physical and personnel security
· Availability of cloud with secure access to data and applications
· Applications security using testing and acceptance procedures
· Privacy access to application with the used of masked access to data
|Network Cloud Characteristics||· Network framework supported by private line connections with Optical Carrier (OC-192) transmission rates on Synchronous Optical Networking (SONET)
· Infrastructure at Service
· On-demand self-service for computing time, network connectivity and storage
· Broad network access for thin and thick client platforms
· Resource pooling with dynamic resources
· Rapid elasticity for quick up scaling
· Measured service to control and optimize resource
Retain Data Center and its Ownership
Alternatively, Fix has the option of retaining the existing in-house systems. The main advantage of retaining in-house systems is that Fix will be assured of maintaining confidentiality and protecting its trade secrets. If the company chooses to retain its own data center containing the email and instant messaging systems, it will avoid the potential risks of third party intrusion which may lead to leakage of its information to benefit of its competitors. In case the interest of protecting an organization’s intellectual property (IP), proprietary information (PI) and classified data is critical, and then in-house services are the best alternative. However, these concerns may not apply to Fix because the vendor that has been chosen has been found to provide highly secure services. This is because AliComp treats client information with confidentiality and integrity, hence being highly commended for the company. Table 2 offers a summary of the advantages and drawbacks that a company like Fix will face by choosing to retain the data center and ownership of its applications.
Table 2: Retaining the Data Center and Ownership
|Retain the data center and ownership||BENEFIT||DRAWBACK|
|Server room build out investment w/o redundancy backup location||· Secure facility to install high value electronics in environmentally controlled high performance center locations||· Very expensive|
|Thin-client architecture investment||· Increased security and reduced administrative costs||· Requires expensive backend server equipment|
|Physical security system||· Protects IP, PI, and classified data from being compromised||· Can be costly|
|Argonite fire suppression/ protection system||· Protects the high value electronics equipment w/o damaging it as water systems do||· Evacuation must take place immediately upon release of gas|
|Fiber optic cabling||· Allows for higher bandwidth and increased network performance||· Higher installation costs|
Risks and Solutions
The main risk of information theft was identified and this may result in loss of trade and competitive secrets. However, this risk was mitigated by the advanced technological platform provided by the highly competent services of AliComp, which according to the company and client testimonials have never been breached The messages transmitted through the systems are also encrypted. This thus assures the company of protection of all its company secrets.
Consequences of the Recommended Solution
By contracting the email and instant messaging systems to AliComp, Fix will be forced to shut down the existing data center. Additionally, the IT infrastructure components of the existing data center will also have to be disposed of and the IT staff might also be redeployed within the organization. These employees may also be released to seek other jobs outside the company in case there are no positions for them within the company.
In order to enhance its experience with the outsourcing company, Fix has to upgrade its existing network equipment before implementing the recommended solution. Apart from replacing of routers and network cables, the company will need to change client interfaces. It will also have to train the users of the system on ways of coping and handling the new system more effectively.
For the company to implement the solution effectively, it has to undertake several project-related activities. It is important for the organization to consolidate its finances, purchase the necessary equipment, employ highly skilled and qualified technicians that can facilitate the installation process, and also come up with a schedule for executing the project. This necessitates recruitment of a project manager to oversee the execution of the project.
The project has to be implemented in viable stages and the first stage must entail seeking information from all the stakeholders that will be affected by the program and changes. The vendor may therefore have to establish and submit a necessity test for requirements. Pilot testing can be carried out to a small part of the organization so as to determine the viability of the solutions offered by the vendor. Once the users are satisfied with the solution, the vendor cam proceed to effect it into the entire organization. This can be done in intervals or phases. The program must also be well monitored and evaluated to enhance its effectiveness and gauge how well it fulfills the requirements that were identified at the onset of the project.
Email and Instant Messaging are pertinent as support systems for the function of Fix as a company. Nevertheless, the resources required to maintain the system are too high and the company also has to hire workers to maintain the server, software, hardware, and the infrastructure. This increases operational costs for Fix Company and reduces its profitability and performance. This necessitates outsourcing of Email and IM functions from a third party to allow the company to focus on its core business function. This will enhance flexibility and effectiveness of access of email and IM applications the company that will provide the services will use cloud connectivity.
AliComp Outsourcing Company. (2013, August). Fully managed IT solutions. Retrieved November 7, 2013, from http://alicomp.com
Baker, P. (2008, 8 August). The pros and cons of outsourcing enterprise emails. Retrieved from http://www.cioupdate.com/trends/article.php/3764216/The-Pros-and-Cons-of-Outsourcing-Enterprise-Emails.htm
Baroudi, C. (2012). Email security: Big risk to organizations and individuals. Retrieved
Djavanshir, G. R. (2005). 2005. IEEE Computer Society, 32-37.
Lucas Jr., H. (2005) Information technology – strategic decision making for managers. John
McCray, B. (2008, March 3). The top 10 problems with outsourcing implementation. Retrieved November 7, 2013, from TPI.net: http://www.tpi.net
Pearlson, K., & Saunders, C. S. (2013). Managing and using information systems: A strategic approach. Hoboken, NJ: John Wiley & Sons.
Amazon: The Kindle and its e-book platform
Technology is an invisible engine that has led to both new inventions and transformation of the publishing industry.Kindle and e-book platforms are major sustainable innovations within the publishing markets that are utilized by Amazon and are expected to conquer the publishing sector. Kindle touchpad and eBook platform are likely to get better with time hence their sustainability as innovative technologies. The eBook fixed layout portions formats and specs are some of the distinctive features of these innovations and they do not have encrypted formats. They are technologies designed to print books which may transition into digital aspects. Amazon’s Kindle format is likely to be sustained in order to create readable screens using modern technology.
Both innovations of Kindle and eBook platforms facilitate access of digital Amazon books and different technologies were built to sustain their existence. Kindle eBook entails utilization of e-ink screens which closely imitates the look of papers and typically does not reflect sunlight. Neither does it use power when displaying selected pages. Instead, it only utilizes adjustable power when downloading Amazon books or when the reader turns from one page to another. Sustainability of the technology applied in the Kindle touchpad is based on the fact that reading devices are energy efficient and user friendly because they are easy on the eye, especially in cases of longer reading schedules. Improved touchpads and e-book platforms have enhanced its sustainability even further and innovation has ventured into models designed primarily as models working as tablets and eBook readers making this platform even more significant.
The innovations adopted by most of Amazon’s profitable customers has been very rapid. This is likely to be the vital source of publishing value to Amazon because the virtual entity literally controls the entire eBook business and technology revolution. Innovations that have been carried out recently may have disruptive impact on the industry and this is because the innovations adopted by Kindle and its eBook platform will be swiftly adoptable by the publishing industry’s potential clients, especially the most profitable customers. The disruptive innovators will be driven up into the publishing present context once the innovation is on track and targeting potential customers. The innovation will have dire effects on publishing market segment that posses the lowest form of profitability.
Launching of the Kindle will directly address the valuable clientele of the industry who are Amazon’s heavy consumers that purchase mainstream books. These are the clients that make the industry profitable and instead of considering their needs, innovations will create complexities. It will reflect on the disruptive innovations that start by addressing unprofitably within the industry. The innovations will revalue the preexisting market and its customers causing disruption.
The acts of Amazon releasing Kindle innovation can be compared to the PowerBooks iteration and this makes it a disruptive innovation. Disruption is based on impacts of technology on industry model. Disruptive measures will occur because tech-oriented online retail perspective of the publishing industry will not get a lead in the eBooks. The innovation will fail publishers because their expertise and skills during formatting transitions will be disrupted within the digital context, forcing the industry to reduce sustainable innovation investments.
The Christian Empire
The start of the worshipping of the Christian emperor was marked by the period during which Constantine took power. Emperors believed in their accountability to God due to the religious strength that was manifested by their followers. Thus, they had the responsibility of upholding orthodox. However, the decisions regarding matters of policy were not made by the royal leaders but bishops. The emperor was charged with the duty of policy implementation, eradication of deviation, and maintenance of religious harmony. His duty was to ensure that God was worshipped in his kingdom. The Church on the other hand, was mandated to handle issues of constituents of proper orthodox and policies.
When Diocletian came into power, he found the kingdom in a desperate situation having been weakened by 50 years of war, epidemics and raids. Devastation and suffering caught up with the people. Many peasants had tied themselves to the soil in the name of local masters in order to be safe. Various sections of the empire’s trade and farming sectors were already in ruins. The currency was significantly losing value with each passing day. The empire was under stiff pressure and reforms were urgently needed in the armed forces. Even though the problems and suffering of the people was clearly evident to Diocletian, the way of obtaining solutions had been severely damaged. This led him to concentrate on three major areas; security, formation of a more competent government and the defense of the emperor against insurgency and killings. Diocletian was committed and managed to double the size of the army which he further split into two groups. He assigned each of the groups its own commander general. Through splitting the government into two sub-divisions with a spate administration, he was able to form an efficient government. However, both divisions answered to the Roman Emperor.
Constantine campaigned for the tolerance of Christianity because when he set out for an important battle which appeared to him in a dream, he was told that he would triumph with the help of a particular sign. He never much about Christianity at first but later became a convert. He named Constantinople as the capital of the kingdom, as required of a large Empire like the one he ruled. He assisted the church financially and saw the building of more basilicas. He also introduced tax exemptions on some clergy, appointed Christians to high offices and granted land for the construction of churches and other properties.
Diocletian succeeded in bringing peace and order within the kingdom. In fact, he helped instill hope in many. However, his reign was hit yet again by another disaster when his economic policies refused to flourish. In order to contain the mess, he imposed death sentence on people who opposed his decrees on prices. Despite this, many still went on to violate the decrees until his government halted the imposition. During his time, he successfully managed to become the ruler of the Western and Eastern divisions of the Roman Empire.
Based on the Emperor’s official proclamation of Christianity, the church earned a significant facelift since worshippers were allowed to freely exercise their faith. This resulted into monasticism, a spiritual way of life that entails renouncing earthly commitments for full dedication to religious work. Monastic life holds a significant purpose in several Christian churches especially the Roman Catholic Church.
The four saints referred to as the Latin fathers were Jerome, Ambrose, Augustine and Saint Gregory. They are also known as the Doctors of the Church. As researchers, tutors and interpreters of God’s word, the Fathers primarily signify the Church of Christ on earth.
The early conversion of many people especially from Germany to Christianity was to some extent mainly influenced by the reputation of the Christian Roman Empire amongst Europeans who were non-Christians. Majority of the Germans who had migrated there adopted Christianity and the orthodox beliefs that were strongly outlined by the Catholic Church in their doctrines. The steady conversion of Germans to Christianity was at times voluntary mainly among those who had links to the Roman Empire. However, many including even those who resided outside the kingdom began converting to Christianity. Others held on and only converted when their tribes settled in the empire.
In the fourth century, Christianity was rapidly growing and the entire Bryzantine Empire had become a Christian kingdom. It became one of the first empires in the world to be formed on the doctrines of the church. However, many people were motivated by paganism in the first period of the Empire. When Christianity became well formulated, the Church leadership was mandated to five patriarchs. After the much popularized division, the Eastern Orthodox Church became independent from the Western church, which was the Roman Catholic Church. This led to the relocation of the center of power to Moscow. The church in Byzantine Empire was largely dominated by the state with its leader positioned in East Justinian. When the kingdom began collapsing, the state’s command over the church came to a halt. During the reign of Ottoman sultans, the power was conferred onto the leaders of Constantinople who were also accorded political influence over their church members.
Computer Games in School
Information Communications Technology has gone through incredible progress and expansion for a number of years because of progression and improvement. Consequently, tutors, scholars, policy makers even learners are expecting complete incorporation of PCs into the school core curriculum. Utilization of PCs in learning institutions is thought to spur learners in taking part in video games also. So as to get rid of the likelihood of learners taking part in more play than learning, decision makers as well as academics are looking for methods of including computer games in school so as for students to get entertained and learn simultaneously.
Games have been leisure for people for a long duration. This is chiefly because they are entertaining therefore, a preferred manner of utilizing their free and pastime whereas taking part in dynamic competition. With technology improvement, these games can now be enjoyed utilizing PCs with young kids joining school using more than 50% of their time on a PC playing video games. Accordingly, their school time is impacted which is portrayed in their marks and performance on physical accomplishments in school. Tutors and researchers are thus looking for means of incorporating these computer games in school core curriculum so as to make sure that learners play while learning.
Effects of Computer Games on Players
Computer games in school can affect the actors who are chiefly learners either constructively or destructively. Positive impacts incorporate action computer games in school improving the player’s visual-spatial abilities, educational video games educating the player’s special and particular skills as well as know-how and pro-social games amassing player’s comprehension whereas reducing their rate of hostility and anger. On the contrary, negative impacts comprise of amplified hostility, anger, conducts as well as thoughts, deteriorating school performance, impacting attention capabilities and addiction founded on a contrast on the amount of time used playing and learning or reading (Sara, Katelyn, Craig & Douglas, 2012, p.647).
So as to make sure student’s life does not impact their learning, it is wise to include computer games in school set of courses. Certain schools have by this time attempted utilizing these games in providing correspondence as well as investigational studies. The tutors have confirmed that the gaming exposure surges student’s performance in the course of visual chores as they enhance their response times as well as target localization. In addition, spatial attention as well as mental health enhances as a learner uses time undertaking PC games (Sara, Katelyn, Craig & Douglas, 2012, p.650).
These games can be assimilated in teaching biology, mathematics and reading skills. Canon, a company in U.S uses video games in training copier experts while Volvo educates car salespersons utilizing an online PC game. This in addition shows that computer games are essential in educating and growing reasoning and physical abilities amongst young learners as well as even utilized by adults in the working zones. Computer games for instance Bronkie the Bronchiasaurus were valued as helpful and endorsed for individuals looking forward to enhance self-care, know-how as well as educational performance for asthmatic kids (Sara, Katelyn, Craig & Douglas, 2012, p.652).
Leonard Annetta asserted that, Discover Babylon, a video game created by students from University of California holds correct scientific and historic data. Therefore, it can substitute learning by involving students in deciphering historical and scientific difficulties whereas growing their comprehension abilities. By networking with a PC whereas playing video games, learners get and enhance their reasoning abilities, mental capabilities, building of vibrant models useful in real world, improve their problem-resolving abilities as well as assess how trustworthy or credible source of data is prior to distributing it (Leonard, 2008, p.230).
Ben Williamson on the other hand asserts that, even though computer games in school is usable in education industry, there is no experimental evidence that students can academically merit from their assimilation in the school core curriculum (Ben, 2009, p.10). He conversely says that, video games are creators of know-how, authentic exercises, persuasive, as well as agents of media literacy and utilization of big ideas. Therefore, computer games in school should be included in schools for helpful as well as proficient provision of education whereas learners develop and improve their mental and reasoning abilities so as to turn into dependable and trustworthy adherents of the community (Ben, 2009, p.16).
This article utilized journal sources so as to concentrate on how PC games can be effectively included in the classroom by tutors so as to make sure learning is provided well and capably. The three articles talked about how technology development and improvement surged utilization of computer games in school could spur learners to take part more in learning as they play.
Get more information at EssaysExperts.net
Ben, W. (2009). Computer Games, Schools, and Young People, Futurelab Research and Development Programme.
Leonard, A. (2008).Video Games in Education: Why They Should be Used, Theory into Practice Journal, 47(1): 229-239.
Sara, P., Katelyn, M., Craig, A., & Douglas, G. (2012). Children, Adolescents and the Media: Video Games; Good, Bad, or Other? Iowa University, Department of Psychology, Elsevier.
RIM Blackberry: Porter’s Five Forces
The competitive force amongst the players in the mobile phone sector is strong. The market has in the meantime been divided, with smartphones being one area in the sector that has rejoiced in imperative development and productivity. A number of years ago, it was assumed that, as smartphones are a blend of diverse technologies, no single company had the capability in each of the technologies to just control the market. In this period, Research in Motion (RIM), the firm that makes the Blackberry variety of phones was turning out to be progressively key competitor in the sector. Actually, it was in numerous means the industry trailblazer. Nevertheless, things have changed with Apple’s iPhone and Samsung’s variety of smartphones (including, most recently, Samsung S4 and Galaxy Note 3) controlling the sector.
In this paper, we go on to explore Blackberry’s markets projections founded on Porter’s five forces. These alludes to competitive forces in the market, what makes an industry smart when it comes to productivity; supplier strength, buyer power, threat of substitutes, barriers to entry as well as competitive rivalry.
Porter’s Five Forces
The Bargaining Power of Suppliers
Blackberry’s market share weakened with time. Therefore, the bargaining power of suppliers in this incident has improved. In contrast, its rivals (for instance Samsung and Apple), having progressively controlled the market, have obtained greater bargaining power regarding their suppliers (than the opposite). Apple and Samsung have huge commodity orders comprising of more suppliers in the market.
In feedback, the corporation is eyeing to rationalize its procedures and supply chain by working with suppliers and distributors. The point here is to focus market attempts towards the zones with huge development projections.
The Bargaining Power of Buyers
The buyer’s bargaining power is discreetly high. This is because carriers (for example Verizon and Telus) “tend to buy in massive volume to provide for their subscriber base” (Kumar et al. 4). The moment commodity demand weakens, as it the circumstance of Blackberry, the sellers rejoice in marvelous purchasing power control over the firm (RIM, in this situation). In simple terms, the market has turns out to be extremely competitive, providing clients extra preferences and as a result, the capability to demand better prices reductions. In other nations, state rule brings about competition blockades for carriers. This is the situation in the Canadian market (Palmer & Sharp 3). On the other hand, clients still have the space as well as competence to pick their favorite commodities. This stability of forces is shown in the size as well as worth of orders that a specific telecom carrier books with the market providers (Blackberry, in this case).
Rationalization procedures cited above incorporate lessening the sum of administration layers as well as workers. This procedure of reorganizing administrative plan and also reducing in-house procedures will aid the firm turn into more regionally alert to the demands of clients. this may make Blackberry commodities as well as services more striking to a larger number of market clients and as a result get greater bargaining power over its rivals.
The Threat of New Entrants
A new entrant with the competence to make a “well-differentiated and innovative product can steal market share from existing competitors” (Kumar et al. 4). Gratefully, even though, in the mobile communication sector, threat of new entrants is restrained. Probable new entrants encounter the difficulties of having to hold vast capital. These “high capital necessities make it hard for new entrants to make profits up to when they build a loyal clientele base and create their brand” (Kumar et al. 4). New entrants encounter another risk, due to the short commodity life cycle in the mobile communication business. In simple terms, competitors have to grow incessantly. The corporations previously in the market have a merit in this situation. They have fairly adequate capital foundations to cater for reservations as well as new market developments. Actually, since they have by now created business as well as all they demand is to develop and enlarge market share, they can find money to invest in data mining tools to aid them comprehend clients’ buying conducts as well as get ahead with future reforms. These are essential components of competitive advantage. New entrants, yet in hunt for acknowledgement in the market, mainly find it challenging to cope with the persistent development that such a vibrant market needs. Similar to Apple’s iPhone and Samsung’s android phones, Blackberry has created a just share of brand loyalty, and also “associated switching costs for consumers” (Kumar et al. 3). All these bring about blockades to the goals of probable new entrants.
Blackberry, as a competitor at present in the market, has particular merits over probable new entrants. The firm is a well-known great worldwide corporation with a huge physical asset foundation at its disposal. This incorporates 16,500 workers; an assessment 80 million subscriber base; around 10 manufacturing bases; and also “a network of 565 wireless carriers across the world that offers Blackberry services” (Standard & Poor 3). The firm provides numerous commodities as well as services; a number of generations of Tablets and Smartphones; Blackberry Enterprise Services; a range of add-on applications (which clients can buy at ease on the firm’s website; numerous generations of software; as well as customer support and many others. therefore, the corporation has a varied produce blend, which lets them to size a wide variety of client markets. The firm as well has an excellent status. It has the “ability to provide security for client’s personal information” (Kumar et al. 6).
RIM has a fairly steady capital foundation for development as well as new commodity growth. Over the past few years, Blackberry has gone through a reduction in profits. In addition, plans show this development is expected to stay the same. Gratefully, even though the company has become stable as well as sustained its market capitalization at $7.74 billion because of a flat-line share value. In 2012, the corporation accrued net revenue of about $1.16 billion. This implies that Blackberry still has adequate resources, and also enhanced backing from capital market groups (S&P 2).
The Threat of Substitutes
Different the question of new entrants, the threat of substitutes deals with the competitors existing in the market. In simple words, the question here is about the prospects of a competitor with a fairly competitive market share entering to control the market. In the mobile communications field, the threats of substitutes are extraordinary. In the current times, for instances, we have witnessed Samsung surpass Apple in the smart phone sector. Numerous fields can offer an escape route for an individual firm to substitute the other from its position. For instance, as stated by Kumar et al. (5), Motorola is at this time creating wristwatch with that same capabilities as smartphone. This has the ability to put out of place handheld smartphones in the market. Besides substitutes, there are probable unruly other technologies in the mobile market. Competitors in the market can face reduced working margins. In relation to Research (2012), the regular price of a tablet in 2011 was $423. Predictions indicate that prices will reduce to around $300 by end of 2013. When a market turns out to be flooded with substitutes (as is the case in the tablet market), it limits revenue margins and restricts the accessible capital necessary for development and improvement of new commodities.
The high threat of substitutes in the mobile communication business is made up of both probable dangers as well as merits to Blackberry. It all relies on how the corporation opts to react to the vibrant market. For instance, blackberry was one of the topmost smartphone in the market, with the brand’s control saturating the private client market. Nevertheless, Apple and Samsung joining the market in 2007 have in the meantime replaced it. These two turned into speedy traditional occurrences. Therefore, RIM’s market share as well as share cost weakened, with its stakeholders going through great losses (Levi 1-5).
On the other hand, there are numerous extents of competition. Blackberry still has certain authority in which it holds significant merit over its rivals. The Blackberry smartphones, for instance has a distinctive keypad. In addition, it has a BBM messaging system. The PIN encryption technology that the Blackberry smartphone messaging system utilizes makes it hard for an individual to capture the consumer’s messages. It has an unmatched security technology that has been challenging for the rivals to copy. As a result, Blackberry is the favorite Smartphone for corporate experts as well as government officials. Having impact over these two market sections offers Blackberry a great certification. This technological resource is chief to Blackberry’s smartphone competitive advantage. Nevertheless, the rivals might just come with improved security.
The Rivalry among Competitors
The competitiveness between market players in the mobile communication sector is as well intense. For instance, Apple and Samsung alone have over 50% of the smartphone market. In the same way, other competitors (incorporating Blackberry) are focusing on how to increase their market share. Owing to huge prices of production at the first phases of the life-cycle of a mobile produce, “competitors fiercely pursue speed-to-market production” (Kumar et al. 4) with the goal to make most of their products’ sales (before they become outdate, because of a dynamic mobile/smart phone market) and so, improve revenue margins. In addition, the more competitors pile up, the more market share thin, interpreting into lessened profits and few monetary assets for new product improvement.
In this paper, we have briefly explored the RIM/Blackberry’s market projections founded on Porter’s five forces of competition; buyer bargaining power, supplier bargaining power, threat of new entrants, the threat of substitutes as well as competitive rivalry. Similar to several other corporations, RIM/Blackberry fairs below par in some of these areas (suppliers and bargaining power) and impartially in others. For instance, it is factual that Apple and Samsung have from this time surpassed Blackberry in smartphone market. Consequently, Blackberry has lost certain power in case of buyers as well as suppliers bargaining power. Nevertheless, the firm still has the prospective to substitute the market players (Apple and Samsung), if not in the market hence in other means (such as technology). Blackberry’s status private data protection has aided the firm sustain significant consumer loyalty. At this moment, RIM/Blackberry ought not to be surpassed by new entrants like Apple and Samsung did. It ought to utilize its assets as well as capital base and also market exposure inventively to rise to top ranks in the market.
Kumar, Aswin, Woods, Candice, Budolig, Girgio, Segars, Lucas & Nathoo, Qasim.
BlackBerry, RIM: Case Synopsis, Jerry Sheppard, March 20, 2013. Web 15 November 2013
Levi, Carmi. The Year RIM Fell To Earth, December 29, 2011. Web, 15 November 2013
Palmer, Randall & Sharp, Alastair. Canada steps in to stimulate wireless competition,
Yahoo News, March 7, 2013. Web, 15 November 2013
Standard & Poor’s. Research in Motion, Net Advantage,2013. Web, 15 November 2013
Antitrust Practices and Market Power
Why Was The Firms Investigated for Antitrust Behavior?
Antitrust laws are established to make sure that there is rational rivalry as well as moral corporation exercises in the market. Microsoft Company was alerted on what to do as well as probed for certain misconducts. In an effort to control the market, they fixed extremely low costs to detriment their rivals who were joining the market. Pulling down their prices and purchasing off the new rivals and at times purchasing their specialists, was an apparent sign of trying to get unlawful control in the market at the cost of other imminent corporations (Areeda, & Turner, 1998). Microsoft moreover reduced their offers, and at some juncture they were informed to have rigged bids to surpass their rivals. Such behavior merited an inquiry; as such exercises would deter the development of future businesspersons, as a result deterring economic development of a country.
The Costs (Pecuniary and Nonpecunary) Associated With the Antitrust Behavior
Diverse sets of individual experience numerous prices on the event of antitrust comportments. These groups are the clients, rivals and the corporation engaged in antitrust conduct. When a control is developed in the market, the key clients are swindled for the goods and services available. The rivals as well get upset as they cannot strive in the market fruitfully as their competitive merit is abridged by a mischievous corporation. This disrupts the economy, therefore a complete loss to a country or a whole region. The corporation that takes part in the antitrust deeds as well goes through great losses when indicted. They experience penalties that may end up taking the organization down as well as it may cost the corporation’s status (Hylton, 2003).
Specific Antitrust Act (Sherman Act, Clayton Act) Under Which the Violation was Investigated
Sherman Antitrust Act
This is a competition antitrust law that has been approved by the congress in the USA in 1890. This law was voted for to exclude activities that were deliberated to deter competition in the market to guard just trade in the free economy. The aim of this rule was to defend the client from designs, which are destined to increase cost with the intention of private corporations gaining profits at the cost of their clients. The rule is as well intended to check all other deeds that may cause domination in the market, which is detrimental to rivalry.
Clayton Antitrust Act
This act of antitrust law was voted for in 1914 to avert domination of the market. The supporters of this act were not pleased at how corporations that controlled the market had the habit to upset clients by vending commodities at extremely high rates whereas providing low quality of commodities as well as services (Fugate, & Simowitz, 1996). This act tries to ban such deeds as domination, trusts, as well as cartels that are not in any way evident to the client’s merit.
Real World Examples Where This May be the Case
The problems of control or supremacy of the market is a collective exercise. When there is a prediction that the costs of commodities may hike, certain corporations opt to flock products, only to make them available to the market at high costs. Come corporations as well upset the future opponents either by purchasing their ideas, or lower their charges to irritate fresh businesspersons entering the market.
Areeda, P., & Turner, D. F. (1998). Antitrust law. Boston: Little, Brown.
Fugate, W. L., & Simowitz, L. H. (1996). Foreign commerce and the antitrust laws. Austin: Wolters Kluwer Law & Business.
Hylton, K. N. (2003). Antitrust law: Economic theory and common law. New York: Cambridge University Press.
Northrop Grumman Corporation
1.0 Organization History and Vision
Northrop Grumman Corporation, which is in the US is a key manufacturing company specializing in defense, commercial aerospace, information technology products and services as well as electronics. It was incorporated in January, 16th 2011 and its headquarters is in Los Angeles (Reuters, 2013. It was first created in 1939 under the name Northrop Aircraft, Inc., but in 1958, it was renamed to Corporation. The company, in 1994 changed its name to Northrop Grumman Corporation after acquisition of Grumman Corporation. Most of company operations are with the United States government, more specifically, the Department of Defense and Intelligence Community. Also, it conducts business with foreign governments as well as domestic and international customers (Amir, 2013). The visualization of the company is to be the most trusted technologies and systems supplies that guarantee sanctuary and liberty of the nation as well as that of cronies. As a leader in the field, the Corporation will continue defining the future of defense (Northrop Grumman, 2013).
2.0 Organizational Strengths and Weaknesses
2.1 Strategically Diversified Portfolio of Products and Revenue Sources
For the company, this is a major strength since reduced revenue from one section can be compensated easily by revenue from other sections; as such the liquidity position of the company is stable (Clawson, 2013). The company has 4 business segments which include electronic systems, aerospace systems, information systems and technical services. Manned and unmanned aircrafts, spacecraft, microelectronics and high laser systems are provided in the business segment. Intelligence systems, information services and systems as well as defense systems are provided in the information segment. Airspace management systems, communication systems, marine, navigation systems, air borne fire control radars and electronics as well as defense systems fall in the electronics segment. The last section which is technical services provides reconstitution, maintenance, logistics and training services. The last section is also the distinctive strength. A product portfolio that is diversified does not just offer market forces that are unfavorable through dispersal of business risks but makes it possible for the company to enjoy opportunities available across varying industries. In the same manner, diversification widens the revenue streams of the company (Knecht, 2014). Revenues from the 4 segments are also balanced adequately. These revenue flows are balanced and they reduce business risks and make it possible for the company to explore opportunities in existing and new markets.
2.2 Realignment of Business Segments
Realignment plays a significant role in the company as it substantially enhances the use of resources as well as improved customer support. The company has realigned it segments successfully in the last couple of years. For instance, in 2009, it changed the organizational structure through cutting down on its operating segments from 7 to 5. In the same duration, it also realigned part of its technical and logistics support programs. Also, it equally transferred its assets from electronic and information systems segments to technical services segment (Space Daily, 2013). The effort of realignment is seen as distinctive strength since it significantly strengthens the core competencies of the company in aircraft and electronic maintenance, repair and overhaul, training and simulation as well as life cycle simulation services. The efforts of reorganizations have also equally enhanced the alignment of the firm with core customers while improving the ability to win new business and program opportunities. Further, it has enhanced the cost competitiveness and overall performance of the company.
2.3 Heavy Dependence on a single customer for a Significant Portion of Business
The company is largely reliant on United States government for revenues. It supplies either directly or through subcontractors to American government as well as a couple of agencies. The revenues it gets from government include sales of foreign military accounts for over 90% of the total revenue. For instance, in 2009, 2010 and 201, it accounted for over 90.3%, 90.3% and 90.5% of the total revenues respectively. In the same manner, there was no single service or product offered by Northrop that contributed over 10% of the revenue over the same duration. The overreliance on government has proven to be a risk as it exposes the company to various regulations as well as congressional and defense approvals. What is more, there is also the risk that government might terminate contracts as a result of unforeseen circumstances. The business can also get exposed to material liability which can adversely affect its capacity to effectively compete with others. The organization also can minimize weakness through production of products that are tailor made for other agencies and private entities. For instance, given the reputation within the security sector, it can design electronic security systems as well as provide support solutions to the private security firms found throughout the US. In the same manner, it can use its abilities in the maintenance and manufacturing of aircraft to manufacture aircrafts, other parts as well as provide maintenance services to companies like Boeing.
2.4 Understanding of its Medical, Pension and Life Benefits
The company provides life, medical and pension benefits to employees. A large number of the retired and current employees of the company are covered under pension benefit and post-retirement plan. During the 2011 fiscal year, the pension forecasted obligation was standing at $ 24,129 million yet, fair value of the assets planned was just $ 21,340 million a representation of a deficit (Underfunding) of $24, 129 million, yet the planned fair value assets was only $21, 340 million a representation of a deficit (Underfunding) of $2,789 million. In that same year, the medical benefit and forecasted life obligation amounted to $ 1,289 million. The cost and medical expenses of pension linked to Northrop’s retirement benefit plans were based on numerous assumptions on the part of the company which included discount rates for future projection of rates and payments of return on the assets. The costs are likely to increase as a result of weak performance of financial markets reduction interest rates and investment decisions failing to achieve sufficient returns (The Brookings Institution, 2012). The obligations of underfunded pension are a weakness since the company is forced into remitting regular contributions of cash to the United States pension plan so it can bridge the gap existing between assets and obligations as the result of placing pressure on the liquidity position of the company. The most ideal way of minimizing the weakness is through freeing of benefit plans for current as well as retired employees. Under the approach, employees are not going to earn beyond a given date and this will stop growth of new obligations (Geisel, 2013).
3.0 Opportunities and Threats
3.1 A Robust Backlog of orders
The dimension that is within the general environment is referred as economic dimension. Its focus is on aspects of economic system with direct impact on the business segments of the company. This includes purchasing patterns, consumers’ purchasing powers and spending patterns. In this dimension, the specific force is increase in aerospace and defense spending. The total backlog for the company includes funded and unfunded backlog. Northrop’s total backlog for fiscal year 2011 was worth $ 39,515 million out of which fifty nine percent was expected to get converted to sales in the year 2012. U.S government orders inclusive of those made by foreign governments accounted for 87 percent of 2011 backlog. Such a backlog of strong orders provided the company with an opportunity since it indicated the services and products of the company are in high demand within the market. In the same manner, the company is also assured of stable revenues growth which can further enhance its position in the market.
3.2 Optimistic Outlook in the World’s Defense and Aerospace Sector
This comes from international and economic dimensions. The world’s aerospace and defense sectors, in the last couple of years have witnessed vigorous growth. Equally, the sector is projected to register steady growth in years ahead in terms of sales. The precise forces are increase in military spending, , international air traffic improvements and expansion of operations of commercial airlines especially after recession. It is projected that such forces will drive the growth of defense and aerospace sectors. According to Market Watch (2013), the aerospace and defense sector is expected, by 2015 to be worth $1,204.2 billion which is a representation of cumulative yearly growth rate of 2 percent from 2012 to 2015. This provides an opportunity for the company as it is among major players in contracting defense especially military aircrafts, information systems, surface ships, electronic systems and submarines. In the same line, the positive outlook offers growth for the company in the medium term and short term.
3.3 Highly Competitive Market
This is a threat that arises from the technological and international dimension of general environment. The major force is competitors. Northrop competes internationally across different sectors. Likewise, technological advancement has contributed to stiff competition with all players in the defense and aerospace attempting to come out as the best taking into consideration the field is technology intensive. The company also faces competition from international and domestic players such as Raytheon, BAE Systems, Lockheed Martin and Boeing. Some competitors have advanced their manufacturing, engineering and marketing capabilities as compared to those of Northrop. On top of this, the current consolidation of the world’s aerospace, defense and space industries has led to increased competition as well as reduced principal contractor numbers (SEC, 2013). The competition therefore is stiff for the company and it can affect the operations and revenue streams of the company negatively. With a large number of competitors aiming for the same contracts by governments, it is likely the revenues will decline.
3.4 Risk Arising from Fixed-Price Contractual Obligations
This stems from economic dimension of specific force and general environment of unexpected changes in price especially changes of raw materials rates like steel. A significant percentage of Northrop contracts with the United States government fall under fixed price contracts. These contacts have a specific scope of work for a fixed payment amount. For instance, in 2011, fixed contracts price accounted for 41 percent of the annual company revenues (SEC, 2013). Particularly, these contracts for work development are characterized by uncertainty and high risk. As such, cost estimates to complete the phase of development are far variable. Businesses are threatened due to failure in meeting contract deadline and this can result to additional company costs. This might also negatively impact the operation of the company due to extra costs.
4.1 Capitalizing on the Opportunities
With the company’s reputation as the most excellent repositories of sophisticated aerospace, information technologies and electronics on the globe, it can capitalize on opportunities that are offered by the universal environment. The company is supposed to make sure it puts into place enough capacity to clear backlogs as well as win customer confidence. Additionally, the contracts should be completed in time in order to ensure the company does not incur additional costs. Secondly, with optimistic outlook in aerospace and defense sector, the company is supposed to enhance its efforts in marketing and reach out to customers both internationally and domestically. This will make it possible for the company to capture a major share of revenues from the expansion of the sector while at the same time reducing the overdependence on government contracts.
4.2 Neutralizing the Threats
As noted already, the main threats Northrop faces are related to fixed price contracts and broader competition. The company has the ability to neutralize competition threat by leveraging on the competitive advantages it enjoys in the market. For instance, the company enjoys contractual relationship with the United States governm
In any organization, workers behaviors are influenced by the management and leadership styles. Motivation is a crucial endeavor, particularly in the attempt of improving employee performance. The desire of a company to achieve its objectives and goals can be manifested in the management and leadership styles applied to influence workers in performing their responsibilities and duties accordingly. In any organization, workers are the most valuable asset since they are key to realization of desired objectives and goals set by the organization. Consequently, it is wise to invest in human resources through varying dimensions in order to ensure each employee performs as desired. The business world has increasingly become sophisticated with competition from various aggressive companies. Motivation, for decades has been viewed as the most imperative discipline that is worth paying attention to and in the event it fails to be exemplified in an organization, there are high chances that various predicaments will arise. This paper provides highlights of Toyota Corporation’s strategy for employee motivation in the attempt to recover from its quandary which was the result of previous performance failure.
In recent times, customers raised incredibly numerous complaints regarding Toyota automobiles mechanical breakdown. As a result, the company was forced into recalling close to 10 million cars globally. According to Press (2013), the error was the result of failure on the part of the employees to perform their responsibilities and duties as expected due to lack of motivational strategies that would push them into good performance as well as organization behavior influence. Despite this fact, employees cannot be blamed as it is likely the problem arose from factors that go beyond their power which includes factors affecting overall behavior within the company. Some of these factors include inadequate job training, inappropriate decisions and actions on the senior managers part, use of inputs that were faulty to carry out various processes, lack of proper rewards and proper motivation strategies implementation which influenced employee behavior. Consequently, the predicament of the company is due to poor decision making amongst employees, improper motivation techniques and failure by management in upholding good culture with the aim of influencing desired behaviors among employees. Indeed, this has obliged the company into employing various motivation strategies in the bid to mobilize employees and develop good behavior so employees can make appropriate decisions regarding specific critical processes as well as equipping them with important knowledge in improvement of performance.
According to Marksberry (2012), the corporation is the largest in the world dealing with automobile manufacture and it is based in Toyota, Japan. Kiichiro Toyota in Aichi, Japan was founded in 1933 by the organization. Today, the company has close to 400,000 employees situated in branches throughout various cities across the globe. The company takes pride in having produced more than three hundred million cars since it was incepted into the business world. Its products range has seen it through numerous successful profits and ventures over the years with quantity and quality being the company slogan. It operates with numerous nonautomotive companies across the globe a fact that makes it serve as the largest conglomerate throughout the globe. Liker and Ogden (2011) explain that through the years, the company has experienced turbulent times in operations which range from experiencing high losses as a result of natural calamities like tsunami and major earth tremors etc to major financial crises which have led the company into emergency borrowing in the bid to finance operations. According to Liker and Ogden (2011), recently, the company was hit by financial crisis in aftermath of engineering failure that saw the company experience the hugest loss ever since it was incepted. A meticulous of management procedures and processes of the business were carried out and the company was able to find a loop in employee motivation by varying management, forcing the company to crack down on such strategies as a way of recovering from its worst ever performance in history.
The endeavors of the company to review its processes of motivation as a measure to improving good behaviors and performance will have a positive influence on its effectiveness and avoid such horrible incidents. Beaudan (2012) explains the company looks forward to encouraging behaviors that are favorable among employees and persistence in excellent performance through recognition and rewards as significant motivation for employees. It is a fact the company experienced shock that emanated from rapid growth that was unbelievably immense with varied accrued benefits concealing crucial information regarding its production procedures but realized too late since the products were available and already made throughout the world. Therefore, the strategy will discourage these incidents and make managers aware of faults before it is too late..
The company, according to Beaudan (2012) has embarked on training extravaganza as the most important step towards motivating employees and promoting good behavior as well as making sure workers are equipped with relevant knowledge needed to deal with a variety of processes. Therefore, the training is going to furnish the employees within the organization with knowledge and skills worth handling various arising challenges, motivating them to identify confidently unusual changes as well as act accordingly in order to avoid misfortunes. According to French (2011), practices of good hiring are important as part of motivational endeavors as they encourage good employee behavior and this is translated to absorption of competent and quality personnel with skills that are relevant and the effectiveness of tackling complex and emerging situations in an organization. This is significant to any company since poor recruitment strategies demotivate other hardworking workers and their morale for performing great in a consistent manner. According to Press (2013), the strategy of retention adopted by the company will make it possible to recognize highly skilled and reliable personnel in terms of mastering the legacy of the company as well as upholding critical mission status.
On top of this, the organization also seeks to improve the process of performance management in the bid of appraising the performance of employees as a crucial motivation agenda. Liker and Ogden (2011) explicate that this significantly affects the behavior of employees regarding their response to negative information while making it easy for the company to flourish profitably. Indeed, there are situations which are similar in a couple of organizations that battle with performance improvement by investing in various motivation strategies for change of behavior. According to Marksberry (2012), a large number of organizations have already realized the essential nature of motivating employees as the measure to persistently encourage good performance through application of strategies that are necessary and worth taking in order to enhance the potency and skills of employees. This has the impact of influencing them to act and behave responsibly in various situations thus ensuring employees made excellent decisions regarding various processes and procedures that don’t jeopardize the reputation of the organization.
The topic on leadership in relation to this situation of motivation heavily relies on various leadership approaches towards employee mobilization to improve performance and behave in a responsible manner. According to French (2011), good styles of leadership encourage positive behavior among employees while at the same time rallying their support in quest for realization of organizational objectives and goals in the long run. Employee motivation affects future trends in Toyota Corporation through encouraging the workforce company to seek perfection in terms of good performance and handling of various situations confidently and effectively.
To conclude, this paper has highlighted importance of employee motivation of Toyota as an important step in shielding it from prior financial crisis triggered by mechanical error that cost the company huge losses. Through motivation, it is possible for the company to mend the hole that caused the company to become vulnerable a situation that was so devastating and it will inspire the personnel to be good managers in terms of accountability and decision-making. Consequently, this will play a major role in helping the company scale the height of success as well as avoid making similar errors that could jeopardize the reputation and brand of the organization. In turn, this is going to influence the company in respect to its strive for excellence.
DHS Annual Performance Plan
In the U.S, all agencies of the government are required to submit financial records and statements annually as a way of complying with The Government Performance and Results Act of 19931. The expenditures of the government projects and programs that are executed every financial year are summarized by these financial records and statements. Among the government agencies that are required to submit their yearly expenditures and budgets is the Department of Homeland Security or the DHS.
The focus of this paper is on the Annual Performance Plan of DHS. It examines the report of the progress of different sectors of DHS. Nevertheless, for analysis purposes, the concentration of the paper will be on the Federal Emergency Management Agency (FEMA). This lies within the DHS. FEMA’s reports of two consecutive years will be compared and analyzed in this paper.
DHS reports on FEMA
Among the similarities of this and last year’s reports by FEMA are the planned and ongoing projects. Nevertheless, the report of FEMA for this year’s projects presents more comprehensive details than the last year’s report. Additionally, this year’s budget is higher than last year’s budget. A comprehensive reporting method has also been adopted by DHS in different sectors. Each sector has an independent budget. Office of Inspector General: Department of Homeland Security. Annual Performance Plan for Fiscal Year 2013. (2013), 1
During the past years, there were general reports submitted by DHS for all sectors. The reports did not consider differences and dynamism of the sectors. For instance, the report of DHS this year provides a summarized budget, the objectives as well as the descriptions of the projects that different sectors will execute this year. All programs were classified in the report of last year. Last year, the report adapted a general format which did not consider the involved sectors. As such, analyzing the report by evaluating each sector at a time is difficult because it uses a general classification. Nevertheless, it should be noted that even with these differences the programs and projects carried out or planned by different sectors have increased in this year’s DHS report.
Reasons for the Differences
Predicting the future expenses is hard for the Federal Emergency Management Agency because it deals with dynamic processes. Emergency/disaster management entails the use of past experiences in developing means of preventing fatalities in the future. This causes a variation in the reports that DHS presented in the two years that have been analyzed. For instance, the DHS report of this year includes the program that will establish recovery and disaster offices. This is due to the fact that FEMA noticed that avenues are required to assist individuals who disasters affect even after they have recovered. FEMA realized the essence of having this aspect incorporated in the federal programs following different emergency response events. These are some of the new developments that cause differences between the presented annual reports of DHS.
2 Office of Inspector General: Department of Homeland Security. Annual Performance Plan for Fiscal Year 2013. (2013), 6
There are also other differences that can be observed in the annual reports of FEMA in regards to its budgeted expenditure. This is attributable to reasons. For instance, DHS opted to audit financial records of each sector independently this year.
Therefore, extra expenses were incurred while paying the auditors. Actually, several projects that are new in the report presented this year entail the audit processes that FEMA should carry out. The need for modern disaster management and response methods combined with the involved dynamics are some of the observable differences. For example FEMA noticed that damaged property should be reconstructed or repaired during an emergency.
Office of Inspector General: Department of Homeland Security. “Annual Performance Plan for Fiscal Year.” 2013.