The Emergence Of Enterprise Resource Planning Systems Information Technology Essay

The Emergence Of Enterprise Resource Planning Systems Information Technology Essay Many organizations have initiated Enterprise Resource Planning systems, using such packages as SAP, Peoplesoft and Oracle. The ERP market is one of the fastest growing in the software industry. In a research conducted by APICS, 34.5% of the companies with revenues over $1 billion planned to purchase or upgrade in ERP system. This research is relevant to indicate that the ERP market may reach $ 1 trillion by the year 2010 (Umble et al., 2005). Enterprise resource planning systems are a major investment. Companies have invested hundreds of millions of dollars in ERP software. Its implementation promotes a variety of business justifications which include replacement of numerous legacy systems, reduction in cycle time from order to delivery, and reduction in operating costs. Also, the on-line, real-time operational data that ERP systems enable managers to make better decisions and improve responsiveness to customer needs (Gyampah, 2004). There is evidence that organizations are satisfied with ERP. Based upon a sample of 117 firms in 17 countries, the Conference Board reports that 34% of the organizations were satisfied with ERP, 58% were somewhat satisfied, 7% were somewhat unsatisfied, and only 1% were unsatisfied (Al-Mashari, M., Zairi, M., 2009). Organizations have a business justification for implementing ERP systems. The business benefits of ERP include improved accessibility of information, real time access to data across the organization, improved cycle time for orders, decreased financial closing time, reduced operating costs, and lowered inventory levels. In addition ERP systems provide an opportunity to re-align business processes with best practices and to integrate enterprise-wide information supporting financial, human resources, manufacturing, sales and marketing functions. Evolution of ERP It was in the Sixties that the concept of resource planning was first introduced by software packages that dealt with inventory control capability. Material Requirements Planning (MRP) systems were later introduced in 1970s and these contained a master production schedule and a bill of materials file with list of materials needed to produce each item. MRP systems were enhanced by adding tools for sales planning, customer order processing and capacity planning that provided input production scheduling, known as closed loop MRP. In the 1980s, MRPII systems incorporated financial accounting system along with manufacturing and materials management systems. MRPII led to an integrated business system that was used to create a database of material and capacity requirements for production and this system then translated these requirements into financial information. By 1990s ERP systems provided seamless integration of all information flows in the company- Financial Accounting, Human Resources, Supply Chain Management and Customer Information (Rondeau Litteral, 2001). Challenges of ERP System ERP system projects involve considerable time and cost not only in terms of investment but also for realization of benefits from their implementation. Research by Standish Group illustrates that 90% of ERP projects are late over budget. Meta Group survey data, based on 63 companies, showed that average implementation cost of ERP was $ 10.6 million and took 23 months to complete (K. Siau, 2004). A successful implementation of ERP requires a multi-stage approach (Jones M. and Price L., 2004), and the benefits of ERP may not occur until later stages. Jones et al., propose three stages: the project phase, the shakedown phase, and onward and upward phase. ERP software is introduced during project phase and is implemented into firms operations during shakedown phase. It is not until onward and upward phase, during which ERP modules are successfully integrated with operations, that the organization can achieve actual business results, such as inventory reduction (Motwani et al., 2002). However, Spathis et al. identify four phases for implementation of the same. The phases are: a planning phase, a re-engineering phase, a design phase, and a configuration and testing phase (Spathis et al., 2003). They indicate that re-engineering business practices around the ERP software is critical to successful implementation. In their stage analysis, Rondeau et al. (2001) suggest benefits of ERP occur when ERP modules are implemented successfully and when organizations can use the ERP foundation to add advance modules such as customer relationship management. A company has to make sure that its ERP investment fetches increased profitability. The key challenge is not in managing technology, but in managing people. An ERP system changes the way people work, and for the system to be effective, the change must be dramatic. It promotes efficient business processes with the requirement of fewer people than before ERP implementation or up-gradation. This implies that some employees will be asked either to change their day-to-day activities or their services would no longer be needed. Managing human behavior aspects of organizational change also known as organizational change management (OCM) cannot be underestimated in importance of this part of the implementation process. One of the keys to managing OCM is to realize that people tend to defy changes associated with their work related activities. If the ERP implementation is a project that is being forced on the employees, then they will instinctively resist it. However, if it is viewed as a chance to make the company more efficient and effective by improving business process, and consequently these process improvements will make the company more profitable and ensure job security to employees, then there is a greater likelihood that the employees will wholeheartedly support the implementation efforts. The best way to improve a business process is to delegate the task to develop process improvement ideas to people who are most familiar with the process using their experience and creativity. Sometimes, a company is not ready for ERP. In many cases, ERP implementation difficulties result when management does not fully understand its current business processes and cannot make implementation decisions in time . In order to obtain benefits from an ERP system resulting in reduction of costs needs an organization to streamline its business processes. However, if a company is not prepared to change its business process es, it will find a large bill for software and consulting fees with no improvement in organizational performance. ERP packages imply, by their design, a way of doing business, and they require users to follow that way of doing business. Some of business operations, and some segments of its operations, may not match the constraints inherent in ERP. Therefore, it is imperative for a business to analyze its business strategy, organization, culture and operations before choosing an ERP approach. Review of Literature Companies implement Enterprise Resource Planning (ERP) systems in order to achieve better responsiveness to the needs of customers through real-time information provided by the system, to link customers and suppliers into a complete supply chain, to provide high degree of cross functional integration, to reduce the costs and to provide the foundation for effective e-commerce (Vollmann et al., 2005). The pressure to survive in the new world order and align with the new paradigm for organizational success, namely, speed, flexibility, integration and innovation, further drives organizations towards adopting integrative software approaches like ERP. It is also a well known fact that information technology affects the organization structure (Bhattacherjee, 2000). Hence, ERP implementation would impact the structure, but this impact has not been elaborately investigated. It is often supposed that IT creates a flatter structure (Stevens, 1998). The flat structure speeds up decision-making p rocess, shortens lines of communication and aids in savings (Klein, 2001). ERP implementation benefits are not realized quickly as expected and the process is lengthy and expensive (Siau, 2004). Many organizations world over and particularly in the fast developing countries are traditional hierarchies and managing changes in structure offering challenges. As ERP implementation is an enterprise wide venture of change.It is important to understand how to manage impact on the organization structure. Two research objectives were central to this research project. ERP implementation influences the structure of the organization. Management of the change to the new structure. This paper is an attempt to examine the ERP implementation experience in a company. It drew on Organization Theory and Change Management theory to understand the transition between structures and to provide the explanations (Amoako-Gyampah, 2004). ERP represents a comprehensive software approach and information technology effects on the organization structure (Kurup, 2004) and ERP implementation success involves change management of techniques, the change management theory (Paton and McCalman, 2004) prove useful in explaining the outcomes of the case study . IT and Organization Structure The organization structure defines how the tasks are to be allocated, who reports to whom and the formal coordinating mechanisms and interaction patters that will be followed (Robbin, 1990). Organization structure has three components: Complexity, Formalization and Centralization. These components are described below and impact of IT on these components is expressed and applied to case analysis to aid in investigation of the influence of ERP on organization structure. Complexity Complexity refers to the degree of differentiation that exists within an organization. This includes the degree of specialization or division of labour, the number of levels in the organizations hierarchy, and the extent to which the organizations units are dispersed geographically (Klein, 2001). With introduction of this component of organization structure, it is possible to have wider span of control with more knowledgeable and empowered employees. Companies with IT can reduce the middle management layers and widen span of control and thereby flatten the organization structure. However, removing layers might create new challenges. New mechanisms for coordination might be needed or new process of governance might be necessary. According to the model proposed by Klein (2001), IT results in wider spans of control, fewer levels, fewer people, easier collaboration and communication. In other words, IT lowers the complexity. Formalization Formalization refers to the degree to which an organization relies on rules and procedures to direct behavior of employees. Evidence exists to indicate that developing detailed guidelines of appropriate operating procedures enhances coordination and is suitable in a stable environment (Martin, 2009). Formalization, however, is negatively associated with adoption and implementation of innovation in organizations (Ahadi, 2004) and hence it is negatively related to the ERP implementation because it tends to boast deleterious effects on the work attitudes. Centralization The decisional control in organization could be centralized or decentralized. In traditional hierarchies the decisional control is usually centralized. Research indicates that IT tends to make the decisional control more decentralized with no commensurate loss of control by the top management (Robbin, 1990). It is possible that the centralization component is related to the size of middle management although there are conflicting findings. IT results in a decrease in the size of the middle management workforce in organizations with centralized decision authority and with an increase in the number of middle managers in organizations where the authority is decentralized. Change Management The change management when linked to ERP implementation has been more focused on process change (Davison, 2002). The other type of change namely organizational restructuring provides specifics related to moving from one structure to another. The objective of restructuring is based on the companys long-range plan and the intention is to set up a structure that enables a company to be ready for new activities. However, changing an organizations structure can be difficult and successful restructuring depends on three conditions: sound planning, effective leadership and organizational commitment (Witzel, 2002). To examine organizational change in a traditional hierarchical organization, consideration is given to: Human element and informal organization. Necessity of strong management actions and inspirational vision. Sustainability of an initiative. None of available models considers all the three aspects. Informal Organization INPUT Strategy Formal OUTPUT Resources, Organization Individual Environment team, Performance Managing Change Transformation Process Figure -1 In traditional organizations, manager had to solve problems by directly communicating with the employees and was related to power and values. However, in ERP implementation much of the learning process comes from hands on use under normal operating conditions after the implementation period is over. Thus power is then transfered to individuals who are able to operate the ERP system better and utilize Work People the system resources efficiently (Aladwani, 2009). ERP affect on nature of work and training is an important part of change management practices. ERP requires users to understand that they are no longer working in isolation, and whatever they do now impacts someone else. This can create resistance that comes from a fear of the unknown and from the need of stability. There are two fundamental sources of resistance to innovations like ERP: perceived Risk and Habit. The habit of keeping the routine practices prevalent in hierarchies has to be tackled using appropriate strategies. Spathis and Constantinides (2003) have proposed a planned change model and this model assumes that change can be defined and moved in a planned way. Unlike other planning models, the four phases suggested in this model are linear and irreversible. This model satisfies the requirement of well-controlled change and strong management actions. Four phases that have been suggested are: Exploration, Planning, Action and Integration. Implementation of ERP Information technology leads to a tremendous impact on productivity of both manufacturing and service organizations. Companies have implemented systems such as enterprise resource planning (ERP), MRP, EDI, over time for improving their productivity. ERP systems have received attention lately due to more effective decision-making capability. Many companies are implementing ERP as a means to reducing operating costs, increasing productivity and improving customer services (Martin, 2009; Pliskin and Zarotski, 2000). ERP system can cripple a company, if not implemented properly. There are horror stories concerning implementations gone astray (Laughlin, 1999; Bancroft et al., 1998). Implementing ERP system successfully calls for strong leadership, a clear implementation plan, and a constant watch on the budget (Wagle, 2008). From a project managers point of view, most important consideration is a clear implementation plan and a strategy, that should evolve through systematic consideration of companys requirements and its ability to manage changes called for under new circumstances. Some of the factors to be considered seriously at planning stage are: Information needs at the operational and managerial level for various functional areas. Feasibility of ERP system integration with the existing information systems Schedule for adaptation of the new system. An organization requires development of an implementation strategy. Such a strategy, will determine how the related changes can be successfully absorbed at various parts of the organization. It has been found that the organizations that had no SAP implementation strategic plan performed poorly compared to those who had a plan. ERP implementation from countries around the world demonstrates that success is essentially conditional on adequately managing complex context of the implementation, which necessitates change management across various key areas related to business processes, IT structure, and management systems (Al-Mashari and Zairi, 2009). This highlights practical issues associated with the implementation of ERP systems. For successful implementation three basic requirements are to be met: a clear business objective, comprehension of the nature of changes and understanding of the project risk. Strong leadership and constant watch on budget are the two other, yet equally significant requirements, as stressed by Wagle (2008). For an effective implementation of ERP system, particularly SAP R/3, an organization must take a holistic view of the process (Al-Mashari and Zairi, 2009). Various issues at strategic, managerial, and operational levels should be addressed in order to achieve optimum outcomes from an ERP system. For a successful outcome an organization must establish competencies in four core areas: Change Strategy development and deployment, Enterprise-wide Project Management, BPR integration with IT, and technical aspects of ERP installation. These competencies will enable managers to effectively manage changes and direct the organization to desired goals (see Fig.2). Fig. 2. Core competencies in effective implementation of ERP (adopted from Al-Mashari and Zairi 2009). Change management Strategy Changes in an organization are brought about through implementation of strategies. Kuruppuarachchi et al. (2002) examined the success (and failure) factors and implementation methodologies that contribute to change management strategy formulation in organizations. Fig. 3 presents a framework of the change management process, incorporating change agents and strategic considerations at various stages of ERP implementation, when viewed from an IT project implementation point of view. Meyers et al. (2009) analyzed about 130 research papers to find out factors influencing the implementation of new technologies for improved operational efficiencies. They classified implementation success factors as buyers characteristics, seller characteristics, buyer-seller interface, and environment. These factors are listed below: Human resources: greater education and training among personnel; positive motivation, attitudes, and commitment toward the innovation. Structure: an adaptive and flexible structure; strong communications mechanism and net work across structural boundaries. Decision processes: broad strategic, as opposed to narrowly and earlier involvement of technical goals; greater and earlier involvement of the operational workforce; top management support and commitment and the presence of a champion; cooperation among units; slow, gradual radical incorporation of the innovation. Technology fit: familiarity with the new technology and availability of relevant skills within the organization. Higher level of technical capabilities of the seller. Strong communications skills of the seller. Expertise in project management of the seller. Constructive cooperation between buyer and seller in implementation. Knowledge transfer: the buyer is involved in leaning, diagnosing, and shaping usage patterns of the buyer. Intensive networking within and across industries leading to greater exposure to innovations. Fig.3. Change management considerations (Source: Kuruppuarachchi et al., 2002). Case Study -I Pantaloon: ERP in Retail More than eight years after it forayed into the retail business, Pantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market. Store operations have never been as important to retailers as they were then. Successful retailers are those who know that the battle for customers is only won at the frontline, which in the case of a retail chain is at its stores. Pantaloon was regularly opening stores in metros and there was an urgent need for a reliable enterprise wide application to help run its business effectively. The basic need was to have a robust transaction management system and an enterprise wide platform to run the operations, says Rakesh Biyani, Director, Pantaloon. The Solution The company was looking for a solution that would bring all its businesses and processes together. After a comprehensive evaluation of different options and software companies, the management at Pantaloon decided to go in for SAP. Some of the qualities of SAP retail solutions are that it supports product development, which includes ideation, trend analysis, and collaboration with partners in the supply chain; sourcing and procurement, which involves working with manufacturers to fulfill order according to strategic merchandising plans and optimize cost, quality, and speed-variables that must be weighted differently as business needs, buying plans, and market demand patterns change; managing the supply chain, which involves handling the logistics of moving finished good from the source into stores and overseeing global trade and procurement requirements; selling goods across a variety of channels to customers, which requires marketing and brand management; managing mark-downs and capt uring customer reactions, analyzing data, and using it to optimize the next phase of the design process. In a Nutshell Aim To deploy a robust transaction management system and an enterprise wide platform to run its operations. Solution SAP retail solution Implemented by SAP team with the help of Novasoft, Singapore Number of users Around 1,200 Time taken About six months Cost of implementation A $ 10 million Implementation The implementation was outsourced to a third party. The implementation was done by the SAP team with help of Novasoft which is based at Singapore, says Core Team Member. This project was headed by Pantaloons Chief Information Technology Officer, Chinar Deshpande. Some people from Pantaloon assisted in the project and twenty four qualified people worked on the SAP implementation. Three Phases SAP implementation in Pantaloon was not a single phase process. The project was divided into three phases. The first phase of implementation involved blueprinting of existing processes and mapping them to the desired state. In this phase, the entire project team worked on current processes within Pantaloon Retail. The various existing processes were thoroughly analyzed and drafted. This blueprint was later used in the formation of new states of the solution. Since the SAP would combine all the processes, each and every one of these had to be evaluated. In the second phase, the SAP platform was developed with the help of Novasofts template which was predefined by SAP after evaluation of Pantaloons needs and expertise in retail solutions. The last phase in this project was for stores to switch over to the new system and for current data to be ported. Before the SAP implementation, all the data was unorganized. This data had to be migrated to the new SAP application. The project was flagged off on 15th June 2005 and took about six months to finish. It went live at the head office on 1st January 2006. The Pantaloon Retail stores used SAP from 1st January 2006 to 30th June 2006. Benefits and Challenges The key challenges in this project were not in the implementation. Rather, the difficulties were faced during the data migration and in managing the interim period when the project was underway for about six months. Migrating unorganized data to an organized format was a challenging task. SAP General Ledger gives Pantaloon a higher level of transparency into individual operations and helps it continually drive productivity improvements across the enterprise. For example, Pantaloon can now automatically split accounting line items per document for each company profit center. These transactions are handled by the software,and the company no longer needs to make period adjustments to balance sheet and profit and loss statements. With the document splitting tool, Pantaloon now has a real-time, complete picture of its accounts receivables and payables across all operational levels, which has enabled it to reduce receivables by up to 10%. In addition, it is now able to close the monthly books 20% faster, due to tight integration between financials and controlling components and real-time reconciliation capabilities. The application is currently being used by around 1,200 employees across the organization. For maintaining this implementation and its related applications, Pantaloon has an in-house team and it has outsourced ABAP resources. ERP system relied greatly on this in-house team for training its employees (at every level) and extracting benefits from ERP. The system runs on a HP Superdome server on HP UNIX 11 and the database is from Oracle. The cost of this project was about $ 10 million. Future projects After the successful implementation of SAP for its retail chain, Pantaloon plans to go ahead with IT projects such as implementation of WMS with RFID, Customer Intelligence and CRM. Inventory and Promotions Optimization are being pursued. Case Study II Ace Designers Ltd. ERP reduces manufacturing costs by 20% for Industrial Equipment manufacturer Overview Since 1987, Ace Designers Limited, Indias manufacturer of CNC lathes and auto lathes, has been exporting machines around the world, including Brazil, Germany, United Kingdom and the United States. With growth, their largely manual systems started breaking down. They had no centralized purchasing department and means of sharing information, so company groups were paying different amounts for the same parts from the same vendor. Delivery dates were missed because of a lack of inventory control, and top management had little visibility to manufacturing process. The Challenge Ace needed a complete information system built around an ERP solution that would help manage every aspect of their manufacturing process-from purchasing and inventory to manufacturing, planning and preparing for ISO certification. The Solution Ace commissioned a comprehensive survey of the ERP market and Intuitive was selected for four major reasons: A 100 percent Microsoft platform, an easy-to-use graphical interface, excellent support, and scalable open architecture features that permitted the addition of users at any time. The consultants who evaluated Intuitive ERP and its competitors for ACE Designers concluded: Intuitive ERP is easy to install, interface, customize and maintain. It can be integrated seamlessly into any manufacturing environment and has a good scheduling flexibility and versatile options. It also has a definite ISO 9000 facilitation orientation. Ace Designers Results Ace started module wise implementation of Intuitive ERP in four phases, which were completed in four months. Intuitive ERPs graphical interface and integration with Microsoft Office and Access made it easy for Aces staff, which prior to this had virtually no computer experience, to learn and use the new system. And using Microsoft SQL Server as the database engine delivered speed and robustness necessary for their mission critical applications. Hence, employees support was a crucial factor that added to achievement of success in ERP implementation in the organization. We transformed the company from a practically nil computer culture to a total computerized system, said V. Chandra, General Manager of Ace. The learning curve for Intuitive ERP is reduced to well below that of other manufacturing systems because of graphical and interactive flow charts and complete context sensitive online help. Implementing Intuitive ERP led to dramatic improvements in every operational area: Managers now have the most current inventory and costing models available to them at all times, and they can set competitive pricing that ensures profitability. They are able to monitor online status of work orders for components, sub-assemblies and final assemblies. Improved Planning: With the previous manual planning system, it was difficult to coordinate customer requirements and design changes with production and assembly functions to meet the manufacturing schedule. Now there is seamless coordination between all departments while significantly reducing planning headcount. Prior to Intuitive ERP, there had been virtually no inventory management at Ace; information on non-moving or slow-moving items and stock values was not available. With new tools in place, manufacturing inventory has been reduced by 20 percent. With reports such as Purchase Price Variance, there is visibility of the cost of every purchased item. This has resulted in better price negotiation with suppliers resulting in a 20 percent price reduction. Intuitive ERP provides accurate data for making manufacturing decisions through reports that include online machine utilization, online work order status monitoring, online WIP components costing, online WIP sub-assembly costing and online labor utilization. Case Study III ERP Implementation Failure at HP Stanford engineers Bill Hewlett and David Packard started HP in California in 1938 as an electronic instruments company. Its first product was a resistance-capacity audio oscillator, an electronic instrument used to test sound equipment. During the 1940s, HPs products rapidly gained acceptance among engineers and scientists. HPs growth was aided by heavy purchases made by US government during the Second World War. In the 1980s, HP emerged as a major player in the computer industry, offering a full range of computers from desktop machines to powerful minicomputers. This decade saw the development of successful products like the Inkjet and LaserJet printers. HP introduced its first personal computer (PC) in 1981, followed by an electronic mail system in1982. This was first major wide-area commercial network that was based on a minicomputer. HP introduced its HP 9000 computer with 32-bit super chip. HP became leader in workstations with the purchase of market leader, Apollo Computers, in 1989. In August 2004, HP announced that its revenues for the third quarter and it was identified that its Enterprise Servers and Storage (ESS) segment had gone down by 5% (amounting $ 3.4 billion) as compared to the same quarter the previous year. The company attributed this revenue shortfall mainly to the problems faced because of migration to a centralized ERP system at one of its North American divisions. The total financial impact of the failure including backlogs and lost revenue was pegged at $ 16

Oliver Twist Essay -- Essays Papers

Oliver Twist A Criticism of Society or a Biography With all of the symbolism and moral issues represented in Oliver Twist, all seem to come from real events from the life of its author, Charles Dickens. The novel’s protagonist, Oliver, is a good person at heart surrounded by the filth of the London streets, filth that Dickens himself was forced to deal with in his everyday life. It’s probable that the reason Oliver Twist contains so much fear and agony is because it’s a reflection of occurrences in Charles Dickens' past. Oliver Twist also brought to light the evils of social injustice and the victims of it. During his childhood, Charles Dickens suffered much abuse from his parents. This abuse is often expressed in his novel. For example, while suffering from starvation and malnutrition for a long period of time, Oliver was chosen by the other boys at the orphanage to request more gruel at dinner one night. After making this simple request, the master (at the orphanage) aimed a blow at Oliver's head with a ladle and placed him confinement. As noted by Patricia Marks in her article on Dickens, â€Å"childhood experience and suffering had emerged as a significant new topic in romantic poetry, and Dickens was personally impelled towards it by memories of his own pre-teenage years when, with the rest of his family in prison and himself alone, he was thrown into manual labour.† Dickens was even quoted as saying, â€Å"I might easily have been, for any care that was taken of... Oliver Twist Essay -- Essays Papers Oliver Twist A Criticism of Society or a Biography With all of the symbolism and moral issues represented in Oliver Twist, all seem to come from real events from the life of its author, Charles Dickens. The novel’s protagonist, Oliver, is a good person at heart surrounded by the filth of the London streets, filth that Dickens himself was forced to deal with in his everyday life. It’s probable that the reason Oliver Twist contains so much fear and agony is because it’s a reflection of occurrences in Charles Dickens' past. Oliver Twist also brought to light the evils of social injustice and the victims of it. During his childhood, Charles Dickens suffered much abuse from his parents. This abuse is often expressed in his novel. For example, while suffering from starvation and malnutrition for a long period of time, Oliver was chosen by the other boys at the orphanage to request more gruel at dinner one night. After making this simple request, the master (at the orphanage) aimed a blow at Oliver's head with a ladle and placed him confinement. As noted by Patricia Marks in her article on Dickens, â€Å"childhood experience and suffering had emerged as a significant new topic in romantic poetry, and Dickens was personally impelled towards it by memories of his own pre-teenage years when, with the rest of his family in prison and himself alone, he was thrown into manual labour.† Dickens was even quoted as saying, â€Å"I might easily have been, for any care that was taken of...

Florida Panther Essay -- Florida Panther Restoration

As the deer fed at the marsh's edge, it's tail flickering as it nibbled tender and ripe green growth. Then the nervous animal pauses in it's feeding and lifted its head to listen. Whatever hint of danger the deer had sensed was ignored once the threat could not be located. It stamped a forefoot, lowered its head and began to eat once more, this deer had failed to detect a Florida panther that was downwind (going into the wind) crouched low in the underbrush. Amber eyes however, estimated the distance between himself and the deer. Then at the right moment attacked the deer, with bounds at over twenty feet at a time the panther exploded out of the underbrush pouncing on the deer and forcing it to the ground. Within fifteen seconds that panther stood breathing heavily over his unfortunate victim of life and death. This scene has been going on for many years, the battle of predator and prey, but know the new predators are humans almost virtually wiping out the entire population leav ing only an estimated 30 - 50 Florida panthers left. Should the environmental leaders of Florida protect the Florida panther? The people of Florida think so, and that is why they named it their state animal. This panther is one of about thirty subspecies of Felis concolor. The subspecies, coryi is one of the rarest and most endangered animals in the world. Panthers, also called pumas, cougars, screamers, and mountain lions, once ranged from the southern end of South America into Canada. In appearance the Florida panther is similar to other panthers, however this rare subspecies has several distinct characteristics such as, white flecks on the shoulders, a cowlick on the back (a cowlick is a tuft of hair that cannot easily be flattened) and a crook in the tail. This is formed by the last three bones in the tail, that is bent forming the stump on the end. Panthers have an average length of six to nine feet from the nose to the tip of tail, stand up to twenty-eight inches in height, and weigh from fifty to one hundred-thirty pound s. These panthers are solitary and territorial animals and seldomly live together except for mating season. Following an approximate 90 day gestation period the females are more sedentary once the usual two to three kittens are born, but more than one kitten rarely survives and that is another reason for the low panther count. Flor... ...eestablish this subspecies' old and unoccupied range areas. These goals were assisted in 1983 when the Florida Legislature established the Florida Panther Technical Advisory Council. The commission is firmly committed to take all necessary actions within their given authority to assure recovery for the Florida panther. The panthers are still going to need broad public support and active cooperation among all management. â€Å"Civilization is the main threat to the survival of the Florida panther†¦Ã¢â‚¬ , and so it will be until we learn how to respect these species that occupied the land we take before us. A land that was not ours to take and land we truly do need as bad for survival as these creatures. Works Cited: 1. Alden, Peter, Rich Cech, and Gil Nelson. 1998. National Audubon Society Field Guide to Florida. New York: Knopf. 2. Brown, Larry W. 1997. Mammals of Florida. Miami, Florida: Windward Publishing. 3. Land, Darrell, and Sharon K. Taylor. 1998. Florida Panther Genetic Restoration and Management. Florida Game and Fresh Water Fish Commission. 4. Taylor, Sharon K. 1997. Florida Panther Biomedical Investigations. Florida Game and Fresh Water Fish Commission.

Will Rogers Essay -- essays research papers

Will Rogers Not many people remember Will Rogers, but in the 1930's he was the most well known man in America -- more popular than Shirley Temple. He was a simple cowpoke who entertained people with his rope tricks and sly political observations. He also wrote a widely-read newspaper column and appeared on the raido every week. I supose he is alot like Bill Cosby is today: beloved for his down-to-earth style of humor. But that "aww, shucks" attitude hid a brilliant mind. Furthermore, Will Rogers was more than just a comedian; he was a man of character. Throughout his life, he exhibited the qualities of humility, fairness, generosity, and loyalty witch make him a real American hero. Will was born in Oklahoma and proud of it. The son of a rancher, he was a one quarter Cherokee and never missed an opportunity to brag about his Native American heritage. "My ancestors didn't come on the Mayflower," he used to joke, "but they met the boat." Will stayed true to his Cherokee roots; he went to an Indian school and had many Indian friends. Later he became active in Native-American issues and was a major spokesman for Native-American rights in the U.S. Above all,though, Will was a "regular guy." His shy grin, easy manner, and total absence of sham endeared to Americans of all backgrounds. He had no pretensions, and his pleasures were simple: he liked to ride horses, rope cattle, and read the papers. In fact he often said, "I only know wha...

Hofstede’s Cultural Dimensions 3 Countries

Hofstede’s Dimensions of Culture: An overview of Venezuela, Belgium and Japan International Business ADM 3155 Table of Contents Introduction to Hofstede’s Dimensions of Culture3 Individualism3 Masculinity3 Power Distance4 Uncertainty Avoidance4 Conclusion5 VENEZUELA5 Introduction to Venezuela6 Individualism6 Masculinity7 Power Distance7 Uncertainty Avoidance8 Conclusion8 BELGIUM11 Introduction to Belgium11 Individualism12 Masculinity12 Power Distance13 Uncertainty Avoidance14 Conclusion14 JAPAN16 Introduction to Japan16 Individualism16 Masculinity17 Power Distance18Uncertainty Avoidance18 Conclusion19 Conclusion to Hofstede’s Dimensions of Culture20 References23 Hofstede’s Dimensions of Culture Introduction to Hofstede’s Dimensions of Culture In 1984, Geert Hofstede published a book called Culture’s Consequences. In this book, he divides cultures into four basic categories. These categories are individualism, masculinity, dower distance and u ncertainty avoidance. Hofstede assigns different cultures a number on a scale between 1 and 100 for each category depending on how their culture corresponds to the description.By analyzing how a country fits into each section a person can get a better understanding of how a culture operates in their daily lives and also in their business. Individualism Individualism refers to how people within a culture interact with one another. Knowing how people work with one another will help you to understand how they will work with you in a business setting. High individualism will display characteristics like importance of employees’ personal life, emotional independence from the company, calculative involvement and more importance attached to freedom and challenge in their jobs (Hofstede).People with high individualism prefer individual decisions as opposed to group decisions. Society encourages individuals to show their own initiative which relates to them finding smaller companies m ore attractive. High individualism can be seen as a more selfish and self-serving way of living (Nasierowski). This is very important when conducting business in a different culture. If you are looking for innovators, new ideas, and self-motivated people, who will contribute more than just labour to your company you should look for a country with high individualism.When conducting business in a high individualism society it is important to recognize individual achievements and reward people on an individual basis. Recognising individual differences and ideas is important as well as giving individual praise and recognition. This will keep employees satisfied and motivated. Individual workers want to chance to excel and they tend to look after themselves and their own needs and advancement and are not concerned with â€Å"stepping on others to get ahead†. Masculinity This dimension is not looking at gender roles specifically, but at the characteristics generally associated with masculinity and femininity.Masculinity is referring to aggressiveness, the desire for power, wealth and achievement. A country with a high masculinity will show traits including admiration for the strong, importance placed on earnings, recognition, advancement and challenge, employees attracted to larger organizations and higher job stress. They also find it acceptable for the company to interfere with their private life. This can be an advantage if you are looking for highly motivated individuals (Hofstede). High masculinity is good for doing business because these employees will be competitive, aggressive and driven for success.They are willing to make sacrifices in their personal lives to achieve success in their business. When working in this type of environment people are more willing to work over-time. You can easily get results from your employees by throwing money and power at them. These employees are not as concerned with ethics or the environment as they are with economi c growth (Nasierowski). Power Distance Inequality is the main issue that power distance addresses. Power distance measures how a culture, group or organization views themselves and each other in terms of authority and value.In a county with a high power distance value is placed on obedience to the person who is seen as in charge. Children obey parents, students obey teachers, employees obey employers, etc. , without question. There is a large amount of fear associated with high power distance and those seen as â€Å"lower† or â€Å"less important† show resentment towards those higher than them and also show distrust to one another. In business, employees do not have input into the company and simply follow orders. Employees are viewed as unmotivated and unhappy with their jobs (Hofstede). Uncertainty AvoidanceUncertainty avoidance is a fear of the unknown. If a culture has high uncertainty avoidance then they are looking to escape any type of difference or change that would occur in their lifestyle, job, culture, government, etc. Characteristics typical of high uncertainty avoidance include a fear of failure, higher job stress, frequent worry about the future and less achievement motivation. Loyalty to ones employer and a tendency to stay with that same employer are also characteristics. This could be viewed as a very positive or negative quality depending on your type of business (Nasierowski).In a business that requires controls and regulations, for example a factory. You would prefer a country with high uncertainty avoidance because you know that they will not try to change any of the products you are producing. They will be more likely to continue following the exact rules, regulations and policy that you have placed in front of them. In business, you will not have to worry about any radical changes or interference. If you want anything new it will have to be introduced slowly and carefully with clear direction. However, you know that once an idea is taken on it will not be tampered with.Conclusion As the world continues to â€Å"shrink†, we begin to experience more globalization and must interact more frequently with other cultures. Through Hofstede’s dimensions we can gain a greater understanding of how to integrate our business with other countries. Being able to understand a country’s culture and how it is different from your own is vital to success in international business. We can decide where would be the best place to do business and how to make it more successful. Before entering a new market the culture and values inside and outside the workplace need to be understood.Almost all businesses are to some degree impacted by globalisation and therefore having knowledge of other countries and other cultures is vital. In this paper we will address three countries from different culture groupings: Japan, from the Independent block, Belgium, from the Latin European block, and Venezuela from the Lat in American block. These blocks are clusters of countries that share common aspects of culture; including geographic location, language, and history. For example, the Latin European block includes not only Belgium but France, Italy, Portugal and Spain. Nasierowski). By explaining how these three countries fall into Hofstede’s dimensions we will be able to help you understand some of the advantages and disadvantages of doing business with these cultures (Nasierowski). Advantages include being able to understand what will motivate your employees and business partners and how to communicate properly in different business settings. For example, depending on what country you were in, Hofstede’s dimensions of culture will help you to know the best way to communicate changes to your business partners and employees.VENEZUELA Introduction to Venezuela Venezuela is a Latin country that occupies most of the northern coast of South America on the Caribbean Sea. The rest of Venezue la is surrounded by Brazil, Colombia, and Guyana. Venezuela has a population over 27 million, which could be considered relatively small compared to other countries with thinking in terms of expanding business markets. The capital city is Caracas which has a population of over 3 million. After gaining independence from Spain in 1821, Venezuela continued to go through a period of unstable dictators.In the early 1900’s it became a major exporter of oil. The oil wealth contributed to the large gap between the countries extremely wealthy and extremely poor. Venezuela’s current President is Left wing Socialist Hugo Chavez who promised to even the gap between the rich and the poor. He is dedicated to loosing Venezuela’s dependence on the U. S. for oil exportation and is therefore trying to strengthen his oil shipping business with China. This could be attributed to his close friendship with Dictator Fidel Castro of Cuba. (â€Å"http://www. state. ov†) When revi ewing the country of Venezuela within Hofstede’s dimensions of culture we find that it falls into extremes with both very high scores and one very low score. (Hofstede) Individualism In contrast to the rest of the scores Venezuela has received in Hofstede’s rankings, in this dimension they are only a 12 out of 100. This means a very low individualism in this culture. Low individualism means that they are group oriented people. They are concerned about how decisions will affect everyone in the group. They have in-groups and out-groups and think of people in terms of how they fit into such groups (Hofstede).It is important when doing business to realize that they will be concerned with the training and physical conditions the organization provides. They have a moral involvement with the company and they place a great deal of emphasis on duty, expertness and prestige as life goals. This type of mind set is called collectivism. If you are doing business with a group of peo ple with high collectivism, you must understand that they are looking at the age of a person. Age is an indicator of knowledge and experience. Collectivists want to do business with people who have been around for a while and know them as a group.They do not like outsiders; you must earn your way into their trust and fit into their group the same way they want to fit in to their own group. For doing business with this group of people you must first learn to belong. You as an outsider will not be able to tell them anything or get them to follow you unless you first belong. The same can be considered when marketing or advertising to these countries as they will only want purchase things that will fit into their already preconceived ideas of life and work. Masculinity At 73 out of 100, Venezuela once again has a high ranking.This means that it tends to be a male dominated society and power structure. This can cause the female population to become more competitive and assertive; however , they are still not on the same level as the male population. Masculinity also means that they are looking for earnings, recognition, advancement and challenge (Hofstede). This would be important to keep in mind when doing business with a Venezuelan company or employees because it can help you identify how to appeal to them to get better work or dealings from them.You can recognize that they are looking for larger corporations and organizations and they are attracted to wealth and success. For countries with high masculinity you can easily motivate your employees with money and success. They are looking to own fancy material objects and have the latest technology and accessories. If you want your employees to do something or achieve something all you have to do is entice them with prestige and power. If you are having a business meeting, take them to an expensive restaurant, ear your best designer suit and pick them up in a flashy car. Power Distance This is Venezuela's highest ran king dimension with 81 out of 100. This is an indication of a high level of inequality of power and wealth which is accepted by the culture as a whole. Hofstede states that Venezuela is in the top 5 in the â€Å"employees afraid† category. This means that Venezuelans show a clear distinction between â€Å"boss† and â€Å"employee†. The boss makes all the rules and the employees follow. A Venezuelan employee would not offer their opinion or any ideas to management.They would not ask questions or for clarification of their job either. The large power distance means that people are concerned with getting favour by saying â€Å"yes† to whatever the boss says (Hofstede). This means that when you are doing business with them you must always remember that if they are looking at you as being the one â€Å"in power† they will not contradict you or tell you if they do not understand anything that you are telling them about how your business is going to be co nducted. They will not offer any suggestions.It also means that if they consider themselves to be the ones in power they are not looking for you to disagree with them or ask them any questions. They are also not looking for any suggestions or ideas either. They are only looking for a â€Å"yes sir†. There is also a large wage difference between the top employees and the labourers. Uncertainty Avoidance Venezuela scores 76 out of 100 on the Uncertainty Avoidance Index. This indicates a high level of uncertainty avoidance. As we have discussed earlier, high uncertainty avoidance indicates a resistance to change and new ideas.There are three indicators for uncertainty avoidance, rule orientation, employment stability and stress (Hofstede). Venezuela being a country with a long history of dictatorship and having a large gap between the rich and the poor can easily fit these three indicators and therefore explain the high uncertainty avoidance. People are used to having on leader and being forced to follow their rules. They are very concerned with their employment because there are not a lot of good jobs to be found. Stress can mean many different things and have many different triggers.For a citizen it could be fear of punishment for rebellion and for an employee, a fear of losing one’s job. When thinking about doing business with Venezuela, you would have to take into account that their high uncertainty avoidance would mean that your employees or business partner are looking for rules and regulations to follow. They want stability and are looking for a routine. They do not like change or progression in their jobs. They are not risk takers in business and would need reassurance. ConclusionWhen viewing the country of Venezuela through Hofstede's dimensions of culture, you can get a better understanding of how decisions are made in this culture and how you can create more profitable business dealings within this country or with companies from this coun try. For Venezuelan’s we see that there is a high power distance which means you should appeal to those who are in power if you are looking to create a business deal or if you are looking to make a change. It will also help you to know that you would have to accommodate your employees who would not be willing to contradict you or ask questions.You must also remember that no one appreciates change or is willing to initiate it, which can be very difficult to deal with in today’s ever changing society. Large corporations are more appealing to Venezuelans, as is money, power and appreciation, but Venezuelans live within groups and therefore are concerned about what is best for all those involved in their group. With these things in mind you would be able to create a successful business relationship as long as you are willing to show understanding for the differences in our shrinking world.Other things that need to be taken into account are the political factors. For Venezu ela this is a negative factor as the government has control over everything in this country. The banking process is very complex and so is the purchasing system. You require identification and verification for all purchases. The government is very concerned about citizens investing their money in other countries and would therefore be very involved in any business associations with companies in Venezuela.Your business would have to have some sort of gain for the country as well as your own profits (â€Å"BBC News†). Another indication of the possible difficulties in doing business in Venezuela is that of the ranking given to this country from the World Bank, International Finance Corporation. Each year they show the results from a series of questions they ask of each country for things like getting a permit, property rights, etc. ; all things that would be considered when starting a business in that country. With these results they rank the countries in order.Venezuela is ver y close to the bottom of the list, which means that obtaining permits, business rights, starting a business, paying taxes, and dealing outside of the borders are all more difficult compared to other countries. The official ranking is 177 out of 183 countries (â€Å"Doing Business: Measuring Business Regulations†). This is all an example of Porter’s Diamond which is a theory that helps you look at a country and see certain factors that affect business. Porter discusses how business has several different factors and government is a specific element that can make a difference at any one of the four points in the diamond.The four areas include: firm, strategy and structure; demand conditions; related and supporting industries; factor conditions (Nasierwoski). This country shows an example of how government is heavily involved in the firm, strategy and structure as well as the related and supporting industries. In fact, you could suggest that government is a factor in the e ntire diamond. This is why it is so difficult to do business in Venezuela. Not only is government involved in everything but it is a very strict and controlling government. BELGIUM Introduction to BelgiumBelgium is a small country surrounded by France, Germany, The Netherlands and Luxembourg. Located in one of the world’s most advanced continents and industrialised regions, Belgium is an important international trading partner and a powerful force in the world of international business. Belgium relies heavily on both imports and exports to fuel its growing economy. It was one of the founding countries of the European Union and the North Atlantic Treaty Organisation. The country also belongs to the Organisation for Economic Cooperation and Development.Currently it has the 9th largest GDP in Europe (World Bank) and its per capita GDP ranks among the worlds highest. The country is also home to Europe’s second largest port, importing and exporting goods internationally, in 2010 exports made up 261 billion dollars. The country has a large industrial sector which includes; steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobile, electronics, and machinery fabrication. (â€Å"Belgium Europe†) It is one of the most densely populated countries in the world with a population of over 10,400,000. â€Å"Belgium Facts†)Belgium has three official languages; Dutch, French and German although English is widely spoken. The country grants more new citizenships than any other country besides Canada. (â€Å"Eupedia's Belgium Guide†)Belgium is one of the most economically and technologically advanced countries in the world and has very high standards of living. They were one of the first countries to legalise gay marriage and the first county to issue electronic passports. The country is number the one chocolate exporter in the world and ninety percent of raw diamonds are negotiated and distributed in Belgium.The country also has the highest proportion of female ministers in the world and the smallest salary gap between males and females in the EU. (â€Å"Eupedia's Belgium Guide†) This small but powerful country continues to grow and expand its international reach. Individualism Belgium’s second highest dimension is individualism with a score of 80 which means that they put a strong emphasis on the individual rather than the group. There is a large focus on individual achievement, initiative and success. When doing business in Belgium it’s important to treat everyone as an individual who has their own ideas and personality.Individualism is something to be celebrated and standing out is important. Therefore, when working with this type of society, it is important to recognise individual achievements and give rewards and recognition to employees on an individual basis. Recognition and rewards are good ways to motivate employees. In this society personal time and personal freedom are highly valued and therefore it is important to give employees their space and freedom to work. It is important not to monitor employee’s work too closely as this can be interpreted negatively, and employees expect to have the freedom to work independently.Work life and personal life are two different and separate things and privacy in both are respected. High individualism is reflected on the emphasis of ‘I’ as opposed to ‘We’. Individuals look out for themselves and their immediate family and therefore look out for ways to better themselves and advance themselves and their immediate family. It is common to pursue individual goals and self advancement at the expense of others. When making decision people think about how the decision will affect them and do not always think of what is better for others.Employees will often change jobs and job loyalty is not very high. When working in this society it is important not to depend on others or on group s and to work on your own. Promotion and ranking often depend on individual performance and not on seniority. (â€Å"Individualism,†) (Hofstede) Masculinity Belgium’s lowest cultural dimension is Masculinity, at 49 putting it in twenty-second place. Belgium is almost right in the middle so therefore they don’t have any extremes towards masculinity or femininity. The country falls in the middle and value both femininity and masculinity equally.It is important to have both these traits. As a leader it is important to display the traits associate with both a masculine and a feminine work ethic in order to fit in and be accepted. A culture that is more masculine tends to focus more on advancement and earning whereas a culture that is more feminine tends to focus more on a friendly atmosphere and position security. Because Belgium is almost in the middle its important when conducting business to maintain both masculine and feminine characteristic and not bend toward extremes.Realise that although advancement, earnings and money are important it is also important in the Belgium business setting to have cooperation, security and a good work environment. High masculine societies prefer large businesses and high feminine societies prefer small busyness therefore the idea business size for Belgium’s is somewhere in the middle. Big enough to be competitive and aggressive, yet small enough to have a nurturing stable environment for the employees. In the Belgium society there is less of a distinction between genders and gender roles.Therefore when conducting business do not assume that someone has certain responsibilities or has a certain roles due to their gender. Support and friendliness are just as important as brilliance and performance in Belgium. To be successfully in business dealings with Belgium remember to display a mix both feminine and masculine qualities and to treat both genders as equally important. (Hofstede) Power Distance Belgi um’s third highest dimension is power distance. Belgium has a power distance of 60 which means that to some degree it is thought that power is not distributed evenly.Although Belgium has a higher power distance they do not have a really high power distance so people respect authority but are not always afraid to ask questions to superiors. Although there is some two way communication, it tends to be more one way communication. A high power distance means that decision making is more centralised and roles and responsibilities are more clearly defined. Organisations have more bureaucracy and larger pay difference exist between jobs and positions. In Belgian businesses there exists a more vertical organisational structure and more vertical communication.In an organisation with a vertical structure there tends to be more rules and policies and it is important to be aware of these rules and policies when conducting business in the country. Information and communication move upward and downward throughout the ranks. It is important when doing business to give clear and precis directions to insure that everyone understands because they might not be comfortable asking for clarification. The relationship between the member of the top of the hierarchy and the bottom of the hierarchy are limited and very professional.Relationships within organisations are more distant. Therefore in business it is important to know the different levels of jobs and who makes the decisions. Depending on what position you hold you will answer to others who hold higher positions of authority and make most of the rules and decisions. It is important to show respect to those in higher positions. If you are on a lower level you may be restricted to certain information. Problems are usually blamed on the people who work in lower positions. (â€Å"Power Distance Index. â€Å")(Hofstede) Uncertainty AvoidanceThe countries highest dimension is uncertainty avoidance, with a 94 which mean tha t Belgium as a society not mot like taking risks. This high level also indicates the country’s low tolerance for uncertainty. Belgium’s very high level of uncertainty avoidance affects how they do business and must be considered and understood before conducting business with a Belgium company or with someone from Belgium. If you think you can change a Belgian businesses way of thinking or doing something in a short period of time you will not be successful.One of the main aspects is that they like to avoid risk and stay away from uncertain and risky situations, including foreigners and foreign ways of doing business. Having things well planned out and prepared in advanced and having things clearly explained is important. Resistance to change is high and therefore changes must be slowly introduced. Laws of the workplace as well as all other laws tend to be carefully followed so it is very important to understand and abide by Belgium laws when doing business in Belgium. They rely heavily on rules, laws and regulation in order to avoid risky situations.When doing business in Belgium it is important to know your facts and be very organised. Belgians will move towards stable low risk investments and avoid unstable high risk investments. Unstructured and uncertain situations are avoided. Because they fear the unknown, foreigners and new ideas are regarded warily and foreigners who want to conduct business with the country must be careful. Because of the fear of the unknown employees are often stressed and anxious, if it is possible to reduce stress and anxiety you will be a lot more successful.Changing jobs is done less frequently and therefore employee turnover is much smaller and employee loyalty is much higher. (Hofstede) Conclusion When doing business in this country foreigners have to take the cultural dimensions of Belgium into careful consideration of they want to be successful. According to The International Finance Corporation 2011 economy ran kings, Belgium is in 28th place out of 183 countries. The countries are raked on various variables, such as permits and taxes, that look at the ease of doing business in the country.Belgium’s reasonably low score indicated that it is possible to enter the market without too many difficulties. Therefore it is a country that should be given much consideration when looking at foreign markets. Before conducting business with any foreign business it is important to look at the cultural differences and how these differences impact business. In order to understand the culture and values of a society it can be usefully to look at the country’s history and past. Belgium has some similar cultural dimensions to Canada and they are used to working with foreigners and different ways of doing business.Because of this Belgium tends to be fairly open and understanding of other cultural differences. However, in order to be successful and gain the trust and acceptance of local workers a nd businesses it is vital to understand the countries cultural dimensions and how to act inside and outside the boardroom. The biggest disadvantage to working with or in Belgium is their extremely high uncertainty avoidance. The Belgium’s avoid risk and unknown situations in order to protect themselves and their country. If there is anything new or risky it has to be introduced very carefully and slowly, the Belgians would never change overnight.This does not mean however that they are narrow minded or unwilling to change. If you are well prepare, respectful and follow the rules of the country and company you can be very successful in the Belgium market. JAPAN Introduction to Japan Japan is an island surrounded by Russia, China, and Korea. Japan has a population of 127. 08 million, this is a fairly large number considering Japan is only an island, as the population gets bigger the island stays the same size, creating a deficiency of land. The capital city of Japan is Tokyo. ( â€Å"U. S.Department of State†) After the second world war ended Japan started to prosper in their business doings, in 1956 they joined the United Nations, 70 percent of Japan's workforce is in services while the remainder 30 percent are in agricultural and industry. The agricultural good that they produce include rice, vegetables, fruit, milk, meat, and fish, they also export some of these items. The official language of Japan is Japanese, while their business language is English . The Japanese have a parliamentary government and a constitutional monarch. (â€Å"U. S.Department of State†) Japan has a free market economy, it is currently the third largest in the world, its economy is highly competitive and efficient in international trade. Productivity is low in agriculture, distribution, and services. Since Japan has few natural resources trading helps them to earn foreign exchange needed to purchase raw materials for its economy. (â€Å"U. S. Department of Stateâ⠂¬ ) Individualism When doing business with Japan it is important to remember that they have very low individualism and high collectivism. Japan does not believe in individual freedom or rights, it is all about the group and what is best for the group.When doing business with Japan, you must never address a single individual as the company, you must address the entire group. When working in Japan, your work becomes your life and whenever your work needs you must put everything else on hold. Japanese emphasize teamwork and loyalty, groups/colleagues learn to trust and work together at a young age. When entering the Japan market you must first be accepted by the group, once you have the groups support you will be able to trust them to your company good and they will be willing to work long hours for you if provide them with what they need.When working for a company in Japan, the likely-hood of you being promoted is based on your seniority in the company, someone who has been there lo nger than you is more likely to get the promotion, even if you are more qualified for the job. Masculinity During the IBM study for Hofstede's five dimensions Japan ranked number one out of all the countries for the highest masculinity, not only is the country masculine but the citizens are as well. It is unacceptable for a woman to wear pants in a business setting, the men find it extremely offensive. The women must either wear skirts or dresses when in a business environment.Men are the masculine ones of the society, during business discussions when things are not going as planned it is normal for individuals to become aggressive in order to get things completed. The women are the ones to calm the men down and provide comfort for them. Women who are in more qualifying jobs are very assertive, just so that they can be seen as equal to their male co-workers. The management structure of a business is built on rules and order among individuals, there is a hierarchy of power in Japan s ociety and in business'. An employee at the bottom of the ierarchy has no right to talk to someone higher up or even suggest ideas that they feel will benefit their company. It is the employees’ job to do what is told of them and to never question their employer. In Japan, one must sacrifice everything for their work, that includes family and social life, the term â€Å"karoshi† is Japanese for dying because one is overworked. Since the population in Japan is so large, the men and women learn to become competitive and have placed a high importance on achievements, if children were to do poorly in school it would be a disgrace to their family. Power DistanceJapan's power distance is a little higher than average. When doing business with them one must watch out for a few things. When working in Japan, for a Japanese company, it is unacceptable for an employee to talk to their superior with disrespect or talk to someone higher up in the working chain about their current m anager, doing such a thing is considered disgraceful and could cause you to lose your job. In Canada it is common for an employee to comment and try to make their company better, where in Japan if an employee were to make such a comment their employment with said company would be terminated.The employees are dependent on their managers, to tell them what to do and how to do it, it is not their responsibility to think for themselves, that is the job for their superiors. Finding a job in Japan could be difficult for people who are migrating to the country and do not already have a job lined up for them. Japan has a caste system in place, once you are born into a caste it is not very likely that you will move away from it, this being said, the occupation that your father has would be the occupation that you will take over.There is a large income difference in Japan, it is easy to tell what class you belong to. Business cards are very important for the Japanese, when going on business m eetings you should always have about 100 business cards on hand for a one week business trip. Having a double sided business card is very important, make sure that one side of the card is in Japanese and the other side is in English. When giving your business card to others you must hold it in both hands, with the Japanese side facing upwards, also, make sure to bow while passing on your business card.Never forget to pick up the business card and put them in your case, if you forget one of the business cards it is like a slap in the face for the other individual. You will have to bring a small notebook to write notes in and never write on the business cards, it is another sign of disrespect. (â€Å"Venture Japan†) Uncertainty Avoidance Hofstede gave Japan a score 92/100 for uncertainty avoidance, it is Japans most prominent cultural characteristic. Citizens do not like change so they tend to stay with the same company for the rest of their lives, staying loyal to their employ er.Individuals are willing to work if they are provided with job security in return. It is important to remember that Japan does not take well to foreign companies that they do not know, coming into their country and starting a business there. You must first gain the citizens trust and acceptance if you want to do well with your business venture. With uncertainty avoidance comes anxiety. Japanese individuals put up with a lot of anxiety about their work and colleagues. â€Å"In Japan there is the outlet of getting drunk along with colleagues after working hours.During these parties, men release their pent-up aggression, even towards their superiors; but the next day business continues as usual. Such drinking bouts represent one of the major institutionalized places and times for anxiety release† (Hofstede, 118) An important thing to remember is that if you want to work in Japan it is accepted to drink in the office after working hours, during the day it is unacceptable to rel ieve your aggression towards your superiors but it is accepted during â€Å"such drinking bouts†.In Japan it is common for others to ask straight forward questions like â€Å"how much do you make? † and â€Å"how big is your house? † such questions are asked so that they are able to assess what position of the hierarchy you at. Conclusion When viewing Japan through Hofstede's dimensions, you get a better understanding of how they do business based on cultural differences. Japan has a high masculinity, and low individualism, this is beneficial for companies seeking loyalty, and who wish to get tasks done on a timely basis. There are many advantages with doing business with Japan, when you gain heir trust and confidence then they will always be loyal to you and assist with what they can. They will get work done when asked and on time, as long as they are provided with instructions they will do the work to the best of their ability. Only a few disadvantages exist w ith doing business with Japan, a reason why someone would not want to do business with them would be that they consider work to be very important, you would not be able to be sarcastic with them or even try to discuss ways to better the company if you are positioned slightly lower than them on the hierarchical business poll.In the end, if you are doing business with Japan you will always be able to count on them, making Japan an excellent country to do business with. Another factor of doing business in Japan is based on the study that The World Bank does each year that addresses the ease of doing business within a country. Japan has a score of 18/183, they have a relatively low score which indicated that doing business with them would be easy and have benefits in the long run, such as obtaining permits, business rights, starting a business, paying taxes, and dealing outside of the borders is very easy for foreign companies to do in Japan.Japan ranked second as the most technological ly powerful economy in the world, after the U. S.. Technology innovation is very important for a countries development, having a company in Japan helps that company because of all the technology advancements that they make, helping them become first in a market and having an advantage above everyone else. Conclusion to Hofstede’s Dimensions of Culture As the saying goes â€Å"our world is shrinking†. This means many different opportunities for businesses to grow and expand.It offers more opportunities to people for competition, access to new goods and services, new technology and knowledge. Everyday our world continues to gain new inventions and ideas. However, with this progress also comes a great responsibility. It is the responsibility of each individual to make sure that they have a respect and understanding for this new accessible world. Another saying is â€Å"knowledge is power†, in the world of business this is very true. In the world of globalization th is is even truer.The more knowledge you have about the customs and beliefs of a certain culture, the more successful your dealings with them will be. Geert Hofstede understood this thought and through his research we are able to gain a better understanding of many different cultures and how when we apply them to the business world we can become more successful. In this paper we reviewed three different cultures from three different areas of the world. Although, we did find many differences in the history, background and specifics of the cultures, we also found some similarities in the behaviours of the people who live in these different cultures.Through these observations we are able to understand that when doing business in Venezuela, if you want to be successful you must look and act as though you already are successful because the country has a high masculinity which means they value money, power and success. We also know that to succeed you must be ready to deal with the difficu lties and interference of the government. Venezuelans are collectivists and so they look out for one another inside their perceived groups however this also means that you must appeal to the group when marketing or dealing with them.They also have a high power distance and so they will not disagree with the boss nor will they let you know if they don’t understand. All of these differences are not necessarily bad things but they can make it more difficult to do business with this country. The important thing to remember is that if you know these things about them then you can work around these obstacles to achieve success. Japan is a very masculine country, making them more aggressive which helps to increase efficiency among employees which benefits the company that they work for.Japan also has high uncertainty avoidance, with high uncertainty avoidance employees do not take change very well, Japan has been doing business the same since World War II ended, some would see this as a bad thing but in reality it is very good, this is helpful because it provides a more secure environment and no one is afraid of what they already know. When doing business in Belgium it is important to keep in mind their high cultural dimensions and how this affects doing business.Their highest dimension is uncertainty avoidance flowed by individualism, therefore, it is important to introduce new ideas slowly and celebrate individuality. Although there are differences that must be considered if you do your research Belgium can be a warm and welcoming environment to do business in and to expand your international reach. We have presented in out paper three very different countries from different sides of the world. But which one is best to do business with? Venezuela, although it is the cheapest market to enter, has a very high rating on the WBI and is extremely difficult to enter and presents many obstacles.Also, as we have discussed earlier in this paper Hofstede’s dime nsions of culture outline the differences and difficulties that one would encounter when dealing with the work force in Venezuela. Japan, although the highest ranking on the WBI, has a very different culture and very different language when comparing it to Canada and therefore would present many different challenges also outlined in the paper according to Hofstede’s dimensions. Belgium is therefore our best choice when considering internationalising into a broader market.Its ranking is close to Japan, well above Venezuela however, it is also a lot similar in culture, demographics and attitudes to Canada. One of Belgium’s official languages is French, which is also a benefit to Canadian business people. However, Belgium would be definitely a smaller market expansion according to population size. References About Belgium. â€Å"Eupedia's Belgium Guide. Eupedia, 2010. Web. 21 Oct 2011. ;lt;http://www. eupedia. com/belgium/trivia. shtml;gt;. â€Å"Ease of Doing Business in Venezeula, RB. † Doing Business: Measuring Business Regulations. The World Bank, 2011. Web. 19 Nov 2011. ;lt;http://www. oingbusiness. org/data/exploreeconomies/venezuela/;gt;. â€Å"Economy. †Ã‚  Belgium Europe. Travel Document Systems, Inc. , 2011. Web. 7 Nov 2011. ;lt;http://www. traveldocs. com/be/economy. htm;gt;. â€Å"Facts about Belgium. †Ã‚  Belgium Facts. Greenwich2000. ltd. uk, 2011. Web. 20 Oct 2011. ;lt;http://wwp. greenwichmeanti me. com/time-zone/eu rope/european-union/belgium/facts/ ;gt;. â€Å"Interesting Facts Hofstede, Geert. â€Å"Itim International. † http://www. geert-hofstede. com. Itim International, n. d. Web. 19 Oct 2011. ;lt;http://www. geert-hofstede. com/hofstede_venezuela. shtml;gt;. Hofstede, Geert. Culture's Consequences. 1st.Beverly Hills, CA: SAGE Publications Inc. , 1984. Print. Page 153, 158, 166 Hofstede, Geert. Culture's Consequences. 1st. Beverly Hills, CA: SAGE Publications Inc. , 1984. Print. Page 189, 200, 205, 207 Hofstede, Geert. Culture's Consequences. 1st. Beverly Hills, CA: SAGE Publications Inc. , 1984. Print. Page 65, 77, 92 Hofstede, Geert. Culture's Consequences. 1st. Beverly Hills, CA: SAGE Publications Inc. , 1984. Print. Page 110, 122, 132, 133 Hofstede, Geert. Culture's Conswquences. 2end. California: Sage Publications, 2001. Print. Hofstede, Geert. Cultures and organizations : software of the mind. 1st ed.New York: McGraw-Hill, 1991. Print. â€Å"Individualism. †Ã‚  KwintEssentials. N. p. , 2009. Web. 7 Nov 2011. <http://www. kwintessential. co. uk/intercultural/individualism. html>. â€Å"International Business Center. † Geert Hofstedeâ„ ¢ Cultural Dimensions. Geert Hofstede – itim , 2009. Web. 20 Nov 2011. <http://www. geert-hofstede. com/hofstede_japan. shtml> â€Å"Japan. † . InternationalBusinessCenter. org , 2008. Web. 20 Nov 2011. <http://www. cyborlink. com/besite/japan. htm>. â€Å"Japanese business etiquette. † Venture Japan. Venture Japan LLC, 2009. Web. 20 Nov 2011. <http://www. venturejapan. com/japanese-business-etiquette. tm>. Nasieroswki, Wojciech. â€Å"Communication is the Key. † International Business. University of New Brunswick. Tilley Hall, Fredericton. 24Oct2011. Lecture. Nasierwoski, Wojciech. â€Å"International Competitiveness. † International Business. University of New Brunswick. Tilley Hall, Fredericton. Lecture. â€Å"Power Distance Index. â€Å"Kwintessential. N. p. , 2009. Web. 7 Nov 2011. <http://www. kwintessential. co. uk/intercultural/power-distance- index. html>. â€Å"The Challenges of Doing Business in Venezuela. † BBC News. (2011): n. page. Web. 19 Nov. 2011. <http://www. bbc. co. uk/news/world-us-canada-15486080>. U. S. Department of State. † http://www. state. gov. U. S. Government, n. d. Web. 19 Oct 2011. ;lt;http://www. state. gov/r/pa/ei/bgn/35766. htm;gt;. â€Å"U. S. Department of State. † U. S. De partment of State. Bureau of East Asian and Pacific Affairs, 23/08/2011. Web. 20 Nov 2011. ;lt;http://www. state. gov/r/pa/ei/bgn/4142. htm;gt;. World Bank, . â€Å"Economy Statistics > European countries by GDP per capita > GDP Per Capita (most recent) by country. â€Å"NationMast N. p. , 2010. Web. 20 Oct 2011. ;lt;http://www. nationmaster. com/gr aph/eco_eur_cou_by_gdp_per_cap_gdp_per_cap-european-countr ies-gdp-per-capita;gt;.

L’oreal Tahiland Essay

L’Oreal is a beauty and cosmetic global company and is vastly spread company all over the world. The company is large sized as it is a Multi-National Company (MNC).L’Oreal offered a number of cosmetic products and beauty services through its fourteen brands they had in 2000, segmented on the basis of price and target markets. Some of the brands were Biotherm which exclusively offered skin care products Kerastase offered only hair care products PCI offered only fragrances and ancillary products Helena Rubinstein & Lancà ´me offered skin care as well as make-up products L’Oreal Paris covered hair colours, skin care, make-up and hair care products. L’Oreal Professional offered services such as hair colouring and hair care treatment Maybelline was exclusively used for make-up products Garnier only dealt with hair colours. L’Oreal offered their expertise in the service of women and men worldwide,  meeting the diversity of their beauty desires with a number of brands which targeted different markets accordingly. Biotherm, PCI, Lancà ´me covered the very high end market, L’Oreal Paris and L’Oreal Professional covered the high end and Maybelline and Garnier covered mostly mass market. L’Oreal Thailand had been performing poor after Asian crisis and was facing a decline in market share, low sales and profitability. Chris Martins, was appointed as a Managing Director in order to help increase the profitably, sales and market share of L’Oreal in Thailand. L’Oreal Thailand had two different local agents which were Slampar and Thailor. Slampar was the oldest one which had a joint venture with a local conglomerate. Due to the high import duties on luxury products Slampar manufactured some Lancà ´me products locally and imported the rest of the line. ANALYSIS CURRENT SITUATION Chris Martins, the new managing director was appointed to create a truly ‘L’Orealized’ company which upholds the long term values and deliver healthy profitable growth. The Asian crisis had negatively affected the market share, sales and profitability of L’Oreal Thailand. Thailand with a population of 63 million had the beauty market of Bt 26.6 billion. Thailand had faced a retail revolution as foreign retailers had entered the market and dominated all sectors. This had increased the level of competition and professionalism for L’Oreal Thailand as well as local companies. L’Oreal had two entities in Thailand, Siampar and Thailor which were later merged to form a single multi-division entity L’Oreal Thailand Ltd. But even after the merger the two companies did not talk to each other and had odds with each other. They also lacked media support due to which some of their brands not even known in the market. The current goal of the company is to solve their issues and further professionalize and stimulate their teams so as to survive in the Thai market. Internal Environment Strengths L’Oreal’s two major brands L’Oreal Professional and Kerasotes are market leaders and had an excellent image among top professional salons. Chris  Martin, who is a well experienced person in the L’Oreal industry, has been well utilized by the company in Thailand during the Asian crisis. From this we get to know that those who work sincerely with complete dedication & talent are given a chance to make use of it. The new managing directorr knows the seriousness of the issues faced by the company and is ready to implement changes in the organisation. The new MD is willing to work on the issue as a team rather than a self-centered approach. For a company’s success, working as a team will overcome any barriers. The company is able to identify the type of consumer’s whereby they can improve the quality of their business by concentrating on the type of consumers. L’Oreal in Thailand operated three divisions-luxury divisions, consumer division, professional division . This decentralized approach to handle respective responsibilities is a good characteristic whereby these three divisions can analyze their own areas and find the key areas to work on. Weaknesses L’Oreal Thailand is facing high turnover and is losing staff as the staff doesn’t see any future of the company. The staffs are just considered to be mechanical employees. The company is not considered about their well-being. Thus experienced employees are lost, young people are to be hired that lack in maturity and motivation. They are not able to catch up with the budget and are facing financial problems due to limited sales. The working environment in the organistaton is not inspiring and motivating for the employees as well as the reward system is out of touch with the market. They lack media support as they do not have enough funds to advertise their brands.Thus there was no clear positioning of the brand in the minds of Thai consumers. The organisation is much leaner and less bureaucratic than the international competitors.This company did not have a good tie up with the Thai government that were more protective about the local companies. A company can thrive only in a well-coordinated and cooperative environment. Martin noticed that there was bitter rivalry among most of the retail sectors. The business was restricted to beauty products only. The company had to think out of the box in order to compete with the counter brands L’Oreal, Paris management turns out to be self-oriented and not concerned about the well-being of the organization. They are not willing to spend beyond the assigned budget. Turnover is highest in the support functions as there is no HR Director at present. This is solely due to the narrow hiring criteria. External Environment Opportunities L’Oreal Thailand has the opportunity to come up in the market as it has a number of good quality brands which lack awareness among consumers due to less advertising They could use direct sales for make-up and skin care products instead of retail sales as this would help them to have direct interaction with their customers and know about their needs. L’Oreal can make specialised products specifically for Asian women so as to target the women’s in the Thai market and increase sales. L’Oreal can expand their business to non-beauty products also to increase their bar of business in comparison to the other leading brands. Beauty products can also be focused on men apart from women, thereby increasing a chance of rise in market. Online marketing should be put to best use to ease the customer needs and provide a niche solution in this technology driven generation. Threats L’Oreal Thailand has a lot of intensive competition in the beauty market due to the entrance of many strong foreign companies. One of the major threats would be the government regulations which could turn out to be deadly to shut down the business as the government tends to be more protective about their local companies. When similar products are introduced in market by different companies, consumers tend to choose the product with minimal price to satisfy their needs. The involvement of local companies in marketing of cosmetics can be a threat to the mass-cosmetic marketing. STRATERGIC CHOICE Methods of Pursuing Strategy External Environment Analysis: Analysing & Studying the current market situation : – Current competitors in the market (Existing companies and new foreign companies) – Finding out the Current Trends in the market – The Current Pays based on the market condition – Identifying the customer needs, what is being sold in the market and the products having high demand in the market. Internal Environment Analysis Analysing the Internal Environment: – Improving the working Environment of the employees i.e. creating a positive office ambience in which the employees feel enlightened to work – Providing deserving remuneration for the employees based on their expertise – Coordination within departments – Meeting the Working Capital Requirements – JUST IN TIME strategy can be applied for the production process – The HR Manager should be broad minded and should recruit new staffs and assign their position in the organisation based on their area of expertise and only skilled workers should be selected. – Motivation of the employees by the Top Management. FOUNDATIONS FOR COMPETITIVE STRATEGY (Marketing Strategy) Promoting their products with the help of media Specifically advertisements in televisions through which a large number of people can be reached over a vast geographical area. Various Sales Promotion methods can be used: – Price Reduction(Discount) Quantity gift, Providing free samples, Product combinations, Sampling, Personal selling. – Promoting products based on the customer needs (selected products having demand in the current market and excluding other products that are least preferred by the customers) STRATERGIC GAP External Environment As there were multiple foreign retailers and industries making their way in Thailand, the market share by L’Oreal was slowly and steadily declining by the entry of similar products in market. In order to increase the market share and revenue for the company, the managers should: Study about the  competitor’s strategy for sales and try to study the consumption of their products by different age groups. This can help them gain an additional advantage over other competitors. Internal Environment 1. L’Oreal has different departments but there was very little or no communication between the departments. So there is a need to improve the inter-department communication so the information can be reached throughout all the organization and they can work efficiently. This can be done by: a) Team Building activities for the employees b) Holding events like dinner or party so the employees can know each other. 2. The organization also faced the problem of the employees leaving their job. The main point here is that the employees didn’t have a satisfying work environment and adding to that the un-satisfying wages. This problem can be solved by the following; a) They should offer employees some incentives or bonus for extra time, extra paid leaves in case of better performance. 3. The company also faced the problem of slow generating revenue. This was happening due to various factors. a) They were selling their products only through 2 types of retail outlets. This was not helping them to make the products in everyone’s reach. b)The company was issuing invoices to the retailers but receiving the payments only when the products were sold. These issues can be solved by: †¢ Selling the products through more retail stores which help increase the sales. †¢ Collect the payments immediately while distributing the products to the retailers. Marketing Strategy The problem in marketing department was that it didn’t have the sufficient funds for promoting more about their products. The solution for this problem is that: †¢ Reduce their operating expenditure by introducing JUST IN TIME strategy. This will reduce the cost for storing the raw materials and as a result, the company can have a better margin over each product they sell. IMPLEMENTATION PLAN Development of alternative strategies enables to select the most apt strategy through proper evaluation of the success rate of each strategy. To make the selection of strategic process more effective, team members should have a clear understanding about the strategic goals thereby reducing uncertainties in decision making. Implementation of the pricing strategy, customer service and product development will definitely improve the firm’s performance. For the successful implementation of strategy there should be integration among the strategy implementation team and functionality between the various departments within the organization. If the corporate culture within the internal environment copes up with the rapid changes of external environment, the performance of the organization increases. Quality of communications plays a major role in the selection of strategy process. High quality communications within the organization can improve the firm’s market performance. Concerning the distribution of products, organisational and tactical planning needs to be done by selling of products through multiple retail stores in attractive ways by: improving the ambience introducing new products through a trial including beneficial offers or discount rates to stay competitive introducing raffle draws to allure customers JUST IN TIME strategy will reduce the storage cost of raw materials and as a result, the company can have a better margin over each product they sell. It is important for an organization to be well aware of the software potentials to improve the organizations efficiency. Employee empowerment in an organization can be done by: providing necessary skills to the employees providing them authority to take up right decisions required for their job providing adequate information and resources to do their job rewarding the employees for their hard work building confidence in them Human resource management can improve the organizational performance by: Introduction of leadership training programs and enhancing the skills and capabilities of the employees mentoring by the senior employees to give deep insight to the kind of work they are doing promoting positive attitudes and increasing motivation and job satisfaction increasing budget scales to allow experimentation within the company in order to take risks to meet the rapid changes of the external environment Allotting responsibilities to the employees so that they can make full use of their capabilities. These are the ways to improve the relationship of the employees within the company, thus producing highly committed employees in the development of the company. CONCLUSIONS AND RECOMMENDATIONS In conclusion, L’Oreal is still the market leader in the cosmetic industry of Thailand because it is providing quality products to its customers. They need to pay more attention to the relationships within the organization and between Tailor and Siampar as this will help them achieve their goals in the future. . Last but not least, well skills of managing conflicts, politics, controlling of power and the structured decision-making approaches within the organization structure and culture will assist L’Oreal Thailand to tackle with the challenges and come with a positive financial performance in order to remain the leader of cosmetics industry in Thailand. We would like to recommend the following to L’Oreal Thailand, firstly that each department should have a different decision making processes. Secondly the Managers should and need to learn from their mistakes as this will help them gain new information from their past failures. Thirdly they need to avoid the conflicts within the organization, the company should implement matrix organization to run the organization by listening more different ideas and respect the voice of colleagues, so the problem solving can be more flexible and objective. Next the company should find out the current trends in the market and try to differentiate their product in order to face competitions. Finally the managers need to motivate the employees if they want the best from all of them.