The uk housing sector

The uk housing sector Introduction The UK housing sector has been under the shadow of ‘Credit Crunch since June 2007, which initiated from United States and began to cover the globe. Not only the construction industry, but all the other industries including textiles etc. were affected due to this. The housing sector was flourishing day by day as more projects where introduced and the log books were filled till next couple of month, until June 2007, the credit crunch began to expand its feathers, after which the whole streamlines began to draw down. The unwanted result for UK housing sector appeared in the form of; 20 30 % of house prices fell from its maximum level, from 2007 onwards Mortgages are not approved as frequently as it was done before and only 50% are approved and new home are not built as frequently as were done before 2007. Goodhart and Hofmann (2008) explain that the mortgage rates are directly dependant on the banks which has a strong impact on the price of the houses. Due to Financial Recession an alarming situation arose resulting in change of different policies within an organization in order to survive. The Large House Builder, plc is a large UK national house builder which has taken necessary steps to counteract the ‘Credit Crunch by maintaining a balance between its cost and its expenditure. This it has done by cutting down its costs, selling the portion of land which it purchased so that it could be sold at a reason able price when required and by repositioning itself into social housing sector. Appleyard (2006) states that the UKs housing sector is going through a change. The current recession has enabled the housing sector to change. This change is usually in the form of merging one firm into another so that both benefit from each others experience and expertise. The company board of Large House Builders, plc has therefore decided to attain the services of Small Firm Ltd which is a small, regional housing developer in the South East of England. This report will address the key change management issues which would take place when there is mergence of Small Housing Builders Ltd into Large Housing Builders plc in regard to its organizational structure and culture. The second part will be the further analysis of this mergence in the form of preparation of a change management plan for the first two years. LARGE HOUSE BUILDER plc The UK national house builder or the Large Housing Builder (LHB) plc has major contribution in UK for the last decade (Appleyard, 2006). The company has a regional structure with offices throughout different locations of the country. This regional structure is managed by a regional manager who is responsible to answer to the central management board concerning his tasks which mainly include the profit /loss, purchasing of land and all the procedures involved in achieving it and the development and marketing of the site. A recent research done by The Future Shape of the Sector Commission (2006) indicates that in 2006, Large House Builders were successful to build 25,000 houses. But due to the recession in 2007, this figure is said to decrease drastically. The research further suggests that to safeguard the market from adverse effects of credit crunch, Large firms started to merge with Small firms in order to benefit itself along with the other firm. The Large House builder plc, being a big organization has the capability to stabilize it in a number of ways. The current Recession has limited the space for the large housing builders to expand further. The only way suggested is by mergence, which can be done by having strong internal and external relationships within and outside the company. This will result in maximum output and the number one priority to satisfy the customer is hence achieved (The Future Shape of the Sector Commission, 2006) ORGANIZATIONAL STRUCTURE Greenberg (1996) emphasizes that organization structure should be such that it should clearly elaborate the arrangement between the single and assembly of people corresponding to the assigned duties, abilities and power with a certain organization. Although it is not possible to see the organizational structure physically but it can be presented in the form of a chart known as â€Å"organization chart† which elaborates the layout of the parties involved in the organization. Such organization chart can be seen for Large House Builders (Appendix B). The organization structure of Large Housing Builders is a complex one as many parties are involved in this firm. In fact there are as many as 20 sub-parties working at a time for a single project. They can be from designing team to finished project, transportation and logistics of construction materials to finance department, from IT department to Estimation works etc. From this fact it can be seen that it is quite difficult to structure the organization on one single page. In order to define the goals, the relevant part of the organization is magnified yet there is a deep inter-relation between different parties of the company which hurdles the way. As stated earlier, the firm is making its best for the survival in the current Credit Crunch. Although the top management is giving more importance to work hard in order to achieve prosperity which it has seen in the form of positive development yet the entire struggle is ending in vain as the current financial crisis is not permitting to prosper. The management of the firm feels like climbing a huge mountain when it comes to paying the salaries to the staff in the current credit crunch. According to Lu (2009, CL) the structure of the company is the correct usage of the potential facilities and the capacity that a company has. There can be three ways in which the project can be integrated into the firm: Functional Structure In this type of structure, much emphasize is given to functional part. Projects are located in functional units such as human resources, finance and marketing where as the projects located in function which has dominant role with relevant staff being seconded from other functions for duration of the project. The disadvantage is this structure is that all groups are more focused towards functional manager. Matrix Structure The Matrix structure is the one which has both the functional manager as well as the project manager. The members of the project have to report to both the functional as well as the project managers. There are three types of matrix structures according to their strengths; a. Functional Matrix Structure In this the functional managers are more dominant than the project managers. This type of matrix system is also called â€Å"Weak Matrix† system and is mostly suitable for large Firms. b. Balanced Matrix Structure In this type the project managers and the functional managers share equal power amongst them. This type of matrix structure is also called a â€Å"Perfect Matrix†. c. Project Matrix Structure In this type of structure, project managers are more dominant over the functional managers. This type of matrix structure is also called â€Å"Strong Matrix† and is mostly suitable for small firms. Project Structure In this type, the projects are self-contained structural units with each unit having its own staff members and resources. From the above mentioned type of matrix structures, the Large House Builders is having the â€Å"Functional Matrix Structure†(Fig.1). The firm was having a boom in construction as it produced about 25,000 houses in 2006. With the initiation of Recession Period in 2007, the firm started to stabilize its self by cutting down its costs. The firms performance was good when considering each project separately but on a broader perspective, there was less or poor coordination between different projects as the structure of the firm was based on some prototype or typical functions. Thus this structure permitted Large House Builders to enhance their accuracy level by keeping themselves gentle and adjustable with the members of the different projects. In the functional matrix structure, the staff members report to the functional manager as well as the project manager as stated by Lu (2009, CL). This sometimes took a shape of minor clashes between different parties and thus halting and making delay in the project. By analyzing the firm, it was seen that the structure of the company changes as the project progresses. These changes were not massive in nature; in fact some minor changes were taking place. When the bidding phase starts, the firm was showing a firm functional type of structure. As the project initiated, the Functional Structure branched out into two parts. When talking about individual project, Project Structure was mostly dominant and the overall structure of the firm was found to be Matrix rather than Functional. Finally at the completion of the project, Matrix Structure was found which influenced both the Projects as well as the firm itself. As stated earlier, that the company has regional managers which are controlled by the management board thus indicate that it is a â€Å"divisionalized organization† as whole of the structure of company is well organized. The characteristics of divisionalized organization are stated below; The management board directs the divisional members who further authorize the regional members to take control of the profit/loss, land acquisition and marketing. This type of arrange corresponds to the â€Å"middle line† part of the organization. This can be considered as the backbone of an organization where key decisions are taken Lu (2009). The firm has â€Å"limited vertical decentralization† of authority as regional managers are in charge of their region and the company is very much dependant on them. The regional managers are in focus of their jobs perspective and have only one goal of â€Å"Standardization of outputs† and thus producing quality houses in favor of the customers. ORGANIZATIONAL CULTURE According to Schein (2004) culture is an in-depth knowledge of assumptions, faiths and values that the members of the organization take as granted. However, it is difficult to describe it and can simply be regarded as the charm or the identity of the organization. Organizational culture has got both the formal as well as the informal components (Lu, 2009cl). Formal elements like aims and objectives were apparent as all the necessary steps were taken to strengthen the firm not only in its own field but other forms of construction as well. Whereas the informal components such as racism, religious symbolism etc. some what were not in line with the latest policies of the company. The board management took a notice of these moral values which were creating problem and hindrance in the achievement of the firms goals. According to Handy (1993) there can be four types of cultures as stated below; Power Culture In power culture, whole of the control is concentrated to very few individuals. This usually have a family type culture and is suitable for small to medium sized firms where the reaction to the current market trend is very instant. Role Culture In role culture the roles are assigned on the basis of functions. These functions are allocated to different member to do the job. Such a setup is usually in large firms. Achievement Culture Achievement culture is very much based on results and outcomes. Examples can be such firms in with much research and development activities take place. Support Culture In this type of culture, much importance is given to an individual person within the organization. Example can be such as within a design team only importance given to Architect. From the above discuss, Large House Builders plc were found to have â€Å"ROLE† culture because each member fully focused on the role given by the top management. The staff members with not encouraged to do such task which was not stated in their role statement. As all the managerial bodies were assigned their role statements, the junior managers tried to prove their mettle by giving more in the current credit crunch whereas the senior management was try to stabilize the firm in its own way which resulted in some unsettlement between the organization. ORGANIZATIONAL STRETEGY Hersey et.al (1969) defines a strategy as the setting and arrangement of the tasks which an organization wants to achieve. There is a long debate as to whether the strategy is set first or the structure of the organization is set first. But for a successful completion of the desired aim, strategy and structure are always in line with each other Lu (2009,Cl). The high standard of the firm was due to the fact that the management board was quite aware of the strength and weaknesses of their company. Every step taken was towards the stabilization of the business. The management board of Large House Builders was seeing the current credit crunch but was unaware that this could give a real tough time to them. So a meeting was called in which certain points were drawn down, the main theme was that the Banks were unable to give the money to the clients which in return resulted in a complete stop to construction of some time. According to Lu and Sexton (2006) the firm in the phase of innovation can be either explorative or exploitative which counts on the Structure capital, Human capital and relationship capital When seeing Large House Builder plc under the generic company level strategies illustrated by Miles and Snow (1978), the company was found to be â€Å"ANALYZERS†. The company was doing well and was very stable before the credit crunch in 2007. This can be judged by the performance of the company in 2006 as the company produced 25,000 houses indicating that it has very well organized structure and they are very bothered about their efficiency, performance and reputation. Thus they were having good expertise in their field of work with good amount of resources available for their expansion and establishment. Being analyzers, the company will expand their business in the same field i.e. construction of houses which may be on a larger or smaller scale but the basic aim will be stabilization, reputation and good performance. SMALL HOUSE BUILDERS: The Small Firm Ltd is a regional housing developer was has its operations in the South East of England. The firm is a family owned organization in which all the top management is from the same family indicating that the culture of the firm will be a family culture. The key members will have strong belief and good understanding between them. The Small Firm Ltd is completely customer oriented. High priority given to customers is very essential to thrust forward in business. Customer satisfaction is the key to success for the firm. The Small Firm Ltd produced 1,000 social housing units in 2006 which is the clear indication of well established link with public and private authorities. The close link between different authorities is very beneficial as such types of strategies are helpful when there is a limited space and time to stabilize. ORGANIZATIONAL STRUCTURE The Small Firm Ltd has highly motivated and trustworthy top management whose total emphasize is on customer satisfaction. The firm has produced 1,000 housing units in 2006 for different housing associations and local authorities. This indicates that the firm has strong ties with its customers and all of them have good understanding amongst them. As previously stated, the organizational structures can be Functional, matrix or project structures Lu (2009). From them above discussion it is quite obvious that the firm has â€Å"Project Matrix Structure† which is also called strong matrix due to the reason that in this matrix type, Project Manager has the authority to influence its staff and workers. The workers have to answer to the Project Manager for their work which is the case in Small Firm Ltd due to the strong tie between the Project Manager and the workers. The role of the Functional Manager in firm is independent to the Project Manager as the Functional manager focuses more on the technical side and the resources allocation. The resources and cost allocation is quite tough job when it comes to a complex project. According to Lu (2009), there may be a conflict developed between the Project Manager and the Functional Manager due to the resource allocation. The firm posses a â€Å"machine organization† due to the following reasons as indicated by Lu (2009): The firm is much focused on technostructureso that it competes the market and its competent. The firm shows limited horizontal decentralization as the members of the board share more ideas with the project manager and less with functional managers although both manager types are important for its success. The labor of the firm is hard working and always motivated to do the tasks which contribute to the betterment of the country and the firm. There is a strong communication and co-ordination grip between the labor and the project manager and thus show standardization of work process. ORGANIZATIONAL CULTURE Deal and Kennedy (1982) explained that to check whether an organization is successful or not, study its culture. The Small Firm Ltd has a family culture which means that level of trust and motivation is very high. From the types of cultures explained by Handy (1993), the Small Firm Ltd is having a â€Å"POWER† culture (fig. 4), the reason of power that the total concentration of the power and authority will be on a single person who will be the leader. Small firm ltd is having an informal type of structure which indicated the strong influence of the leader (family member) the staff members including managers. The firm can easily cope with any external discrepancies that may arise during a tenure time of any project. Thus making it self stabilize creates less problems and such firm can easily cope with financial crunch. ORGANIZATIONAL STRATEGY Structure and Strategy should always be inline with each other (Lu, 2009). Thus this type of strategy can be found in Small Firm Ltd as the firm can easily cope with financial crisis. From the types of strategies stated by Miles Snow (1978) the Small Firm Ltd was found to have â€Å"DEFENDER† type of strategy. The Small Firm ltd is very market based firm, close study of market and new trends in market is very beneficial for the company as it helps to change the short comings and thus increase the profit. The strong relation between the top management and the departmental management is in strong observation between the leader which is very beneficial to enhance the chances of survival in the time of difficulty. CURRENT SITUATION The management board of Large House Builder plc has decided to merge with Small Firm Ltd in order to stabilize itself in the ongoing credit crunch period (Appendix 1). This is not the only aim; in fact other things are also taken into consideration like Large House Builder plc is trying to adopt the expertise of social housing as well so that if there is a slump in the construction of large houses, the company can mingle with the social housing sector. So there is a need of change between two companies which can easily be brought into practice by implementing a change management plan. CHANGE MANAGEMENT According to Lu (2009, LP2) change is an important fact of life and the key success is to manage it successfully. A successful manager is the one who doesnt allow change to happen on its own, in fact he make proper plans and strategies to implement change. Change doesnt take place at once rather it can take place many months and even years for the different parties involved in change to settle down and know each other. Such a situation of change management has risen up between the Large House Builders plc and the Small Firm plc. Both the companies are opposite to each other in the since that both have different organizational structures, cultures and strategies but the common thing between them is that the both are in the construction business and especially in house building. Both companies will have the following Organizational issues; Structural issues The large house builders have functional matrix structure and the small firm ltd has a project matrix structure. The small firm will have to work really hard to come with the structure of the large house builders. The large house builders have a very well organized formal structure where as the small firm has an informal structure. Cultural issues The Large house builder has a Role culture in which every manager has a certain role assigned on which he is only answerable for his work to the top management whereas the small firm has power culture in which whole power is concentrated on the leader or single person. Such issues may produce a clash between two parties. Strategic issues The Large House Builders have adopted the analyzers strategy where they are keen to expand their company according to given marketing conditions and respond to market changes. On the other hand, Small firm adopts defenders strategy in which they do the job in their own field of expertise saving themselves fro outside threats because of having family culture. Such issues may cause a hurdle towards success between the two companies. To cope up with such difficulties a two year change management plan will be setup so that the process of integrating two companies of different culture, structure and strategy can run smoothly. TWO YEARS CHANGE MANAGEMENT PLAN To bring about change in the organization, necessary two change management plan is to be setup for the proper implication of roles and jobs of the two different teams i.e. the Large House Builder plc and the Small Firm ltd. Lewins (1947) three stage change management plan for the individuals of the organization can be setup as: Unfreeze Change Re-freeze Kottars (1996) eight stages change management plan will be used to implement a successful change in the organization. The eight stage plan is: Establishing a sense of urgency Creating the guiding coalition Developing a vision and strategy Communication the change vision Empowering broad-based action Generating short-term wins Consolidation gains and producing more change Anchoring new approaches in the culture The two change management approaches will be integrated in such a way that a proper setup over a period of two years will be established which will enhance the companys performance. FIRST YEAR The first year of the mergence of Small Firm ltd into the Large House Builders plc will be very crucial as many objections and discrepancies are likely to be encountered. Though the anticipated outcomes of the mergence is likely to generate a lot of benefit to both the companies yet the initial few months are regarded as very sensitive for the Small Firm Ltd. The change management plan is broken down in Quarters of a year and possible planned workout is analyzed as follows: FIRST QUARTER (Q1): During the first quarter of the first year the Small Firm Ltd will be in the learning stage and would be considering ways to overcome the barriers which would resist their way towards the change. According to Greenberg (1996), an organization can encounter with two different types of barriers in change. Organizational Barriers to Change Individual Barriers to Change 1. ORGANIZATIONAL BARRIERS TO CHANGE Sometimes terms and conditions are such set in an organization which barriers a change to take place (Katz and Kahn, 1978). Following are the organizational barriers to change in the view of Greenberg (1996): a) Structural inertia The Small Firm Ltd and the Large House Builders plc significantly differ with respect to the organization structure they have worked in before. The Small firm ltd will learn to adopt the divisional structure of the large house builders by mixing their manager with the divisional managers of large house builders. b) Work group inertia The large house builders and the small firm have their own ways to complete the assigned task. A task is not just completed as it a part of the job in fact, it is because the person learn from his social values to complete a certain task as assigned Greenberg (1996). So to tackle the pressure of completion of task at both ends is different which needs to be considered when assigning tasks. c) Threats to existing balance of power This issue is very important when it comes to change within two organizations as the managing power of both firms is entirely different from each other. For example the Large builders have a management board and a CEO who is in charge of making key decisions whereas in Small firm there is a single power or a leader who takes key decisions. After mergence, a conflict would be raised up during the designation and allotment of powers within the organization. d) Previously unsuccessful change efforts. Both the firms are quite familiar with the fact that change management theories recently adopted by firms havent proved to be successful yet both are willing to stabilize themselves with firm motivation and hard work. 2. INDIVIDUAL BARRIERS TO CHANGE The Small firm being in the initial stage of mergence will be facing great difficulty to cope with the individual barriers to change. According to a research done by Nadler (1987), there are many factors that hurdle the way of people towards a change. These factors are: a) Economic insecurity A very important point which comes into ones mind during a change at any level of work is that whether my job is secured? Am I getting the right salary? Such issues when taken into consideration during a change in such a time of Credit crunch may alter the minds of the employees of not only the Large builders but in fact the small firm ltd also. The reason being that both the firms are going to re-locate and re-assign the tasks to the individuals which my interrupt the desired performance of members. b) Fear of unknown While following the same routine of work as followed by the staff for quite a long time, the staff felt secured that they had a good level of understanding developed between other staff members and managers. Merging with someone you havent worked with before will set up a fear of unknown and everyone will be in a state that something can go wrong any time Greenberg (1996). c) Threats to social relationship Due to a change the members of the firm feel un-relaxed and insecure as they had good relation ships with the members they were previously working with. Due to this a lack of communication would be developed which would resist the fluency of work. d) Habit By doing a similar kind of work for past many years develops a natural phenomenon for an individual and the person becomes habitual to it. Any alteration in form of a change/new job, can result in mental dissatisfaction resulting is low performance. e) Failure to recognize need for change In situations where the individuals of the organization are unable to understand the necessity of change can result in a complete disaster. To overcome this, necessary steps such as awareness campaigns are run to establish a level of understanding among the workers so that they are well aware of the advantages of change. During the First Quarter (Q1) of the first year, the Small firm Ltd will be coping up with the initial difficulties of settlement in the organization. With the further enhancement of the Two year change management plan, there would not be any discrepancy left within both the organizations after mergence.

Treatise on Happiness by St. Thomas Aquinas Essay -- Treatise on Happi

In the history of the western world, few men have made a greater impact on humanity’s learning that Thomas of Aquino. Having written dozens of different publications, including his famous Summa Theologià ¦, on subjects varying from the angels to philosophy; from law to theology, Thomas has secured himself a permanent place in academic history. Although never writing directly on the subject, Thomas also influenced the field of ethics, especially through his â€Å"Treatise on Happiness,† which are found within his Summa. In these treatises, Thomas details the nature of happiness, and how happiness is obtained. In the field of ethics, this work is important because it embraces the Aristotelian ideal how a happy person is just, or ethical. Thomas embraces the ideas of Aristotle throughout his work, and goes on to comment on, and Christianize many of Aristotle’s original ideas, including how happiness affects our senses and faculties. One of the most interesting dev elopments in the â€Å"Treatises on Happiness† is the combination of the concepts of Aristotelian happiness, found in Nicomachean Ethics, and Augustinian idea that happiness is not available in this life. In this essay, I will highlight the importance of Thomas’ â€Å"Treatise on Happiness,† and recognize its importance in the context of philosophers who preceded Thomas, namely Aristotle. Before proceeding, it is important to recognize how Thomas defines happiness, and how this is contrasted with those philosophers who predated him. Aristotle wrote extensively on happiness in his Nicomachean Ethics, and argued that: â€Å"happiness is an exercise of the vital faculties in accordance with perfect virtue or excellence,† . In this, Aristotle means that happiness is the use of man’s reason, will... ... be used to practically move towards happiness. Works Cited Aristotle. Nicomachean Ethics, Translated by F.H. Peters, M.A. 5th ed. London: Kegan, Paul, Trench, Truebner & Co., 1893. Accessed November 22, 2014. http://oll.libertyfund.org/title/903. Challoner, Richard., ed. The Douay-Rheims Bible. Douay: Kellah, 1750. Accessed November 22, 2014. http://www.drbo.org/ DeYoung, Rebecca Konyndyk, Colleen McCluskey, and Christian Van Dyke. Aquinas’s Ethics. Notre Dame: University of Notre Dame Press, 2009. Plato. The Republic, Translated by B. Jowett, M.A. 3rd ed. Oxford: Clarendon Press, 1888. Accessed November 22, 2014. http://oll.libertyfund.org/title/598. Thomas. Summa Theologià ¦, Translated by Fathers of the English Dominican Province. New York: Benziger Bros., 1947. Accessed November 22, 2014. http://dhspriory.org/thomas/summa/index.html.

Who is to blame Essay -- essays research papers

Who Is To Blame? â€Å"Frankenstein†, one of the key texts in modern literature, was written by Mary Shelley in 1818 when she was only 21. The novel was first published anonymously, and the author was only later revealed to be Shelley. When she republished the book in 1831, with changes to the story, Shelley had finally answered the question she had been asked several times: how could such a young girl write about such horrible things? Her answer describes her literary sources, as well as a disturbing dream that was the kernel of inspiration for the story. â€Å"Frankenstein† is a tale about a man named Victor Frankenstein who creates life out of ‘raw materials’. As the story unfolds, the creature comes to life and ends up, out of revenge, killing several members of Frankenstein’s family. Although ...

Adidas Internal Analysis Essay

1. Introduction Competition and competitive markets are common in every industry. Especially since Globalization is influencing our economy, companies need to stay competitive in order to survive against new rising competitors, which are basically rooted in the Middle East Asia. Analyzing own strengths and weaknesses and capturing new opportunities or avoiding threats, are one of the most important factors for reaching this goal. This paper is dealing with the German apparel â€Å"Adidas†, which is one of the world’s largest manufacturers for sportswear and sport utilities. But why are they one of the leading global players in this certain industry? There are some key factors, which influenced their worldwide success. A part of different departments, e.g. : research and development, human resources and in-and outbound logistics, which are working together in a fluent way, elements like customer relationship management and brand recognition are the main drivers for capturing new custome rs and the retention of regular customers. The intention of this dissertation will be, to explain Adidas’ internal strategies and the construction of their individual competitive advantage. One important basis for this competitive advantage is the â€Å"resource based view modelâ€Å".The resource-based view as a basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable intangible and tangible resources at the firm’s disposal. (Crook, T. R., et. al., 2008). In this scientific paper, I will conduct an internal organizational analysis of the firm. I will figure out how and why Adidas is one of the most important companies in its industry and will identify their success. 2. General Information and Organizational Structure The Adidas AG (Adidas Group) is a German multinational corporation, which designs and produces sportswear, accessories and sport utilities. The company is based in Herzogenaurach, Bavaria, Germany. The corporation basically consists of three companies, â€Å"Adidas†, the brand itself, â€Å"Reebok  sportswear† and â€Å"Tailor-made-Adidas Golf Company†. Reebok is a subsidiary of Adidas since 2005 and also a manufacturer of athletic shoes, clothing and accessories. â€Å"Tailor-made-Adidas Golf Company† designs and markets all products which are related to Golf. The Adidas group is the largest sportswear producer in Germany and Europe and the second manufacturer in the world, right behind â€Å"Nike†. The company was founded in 1924 as the â€Å"Gebrà ¼der Dassler Schuhfabrik†, but was officially registered in 1949 by Adolf Dassler, after the split of â€Å"Gebrà ¼der Dassler Schuhfabrik† between him and his older brother Rudolf. On e of the most important competitors of Adidas was and still is, â€Å"Puma†, which was established by his brother Rudolf Dassler in 1949. The structure of the organization is very well defined. There are different functional departments such as marketing, production, R&D, customer services, operations, distribution, and human resource with clearly defined jobs at all levels. The vision of the Adidas Group is to be the leader in the sportswear industry, with sub-brands built upon a passion for sports and a sporting lifestyle. In order to achieve the goal a profound understanding of the consumer and customer is essential. To satisfy the needs of the customers it is essential to build a strong customer relationship in order to understand their buying behavior (AdidasGroup, 2013). Adidas ´revenue in 2012 was listed at 14.488 billion euros and profit was listed at 1185 million euros. In 2010, Adidas worked with 1,236 independent factories, in 69 countries. 69% of these factories where located in Asia and the rest in Europe and the U.S. 27% of the Asian factories are based in China. In 2006 the sales of Adidas ´ in the A sian regions and in the emerging countries (South Korea, Romania, Russia, Croatia, and Brazil etc.) increased up to 147,8%. (Annual Report 2012, 2013) 3. Resource Based View 3.1. Tangible/Intangible Criteria In every business are many types of resources and assets. Some resources are clearly visible and tangible and others may not. The Resource Based View is a device to assess the amount of tangible and intangible resources, in order to capture possible capabilities with the goal, to build a sustain competitive advantage. The device is differentiating between intangible and tangible resources. Intangible resources are skills, services, corporate  reputation or knowledge a firm can provide. The collective knowledge of a firm’s workforce represents a tremendous resource. Intangible assets are difficult to quantify in financial terms and often impossible to sell. Education and experience are the main drivers for the knowledge of a corporate workforce, and grows within the structure of a particular industry. Tangible resources are known as raw materials, products or workforce. Corporations that are committed in primary resource extraction have holdings of very tangible goods or reso urces and often own the land outright on which their resources are located or manufactured (Freiling, J., 2001). Furthermore, but less a tangible resource, the corporation owns the rights to the coal, oil or any other raw material, that is located on public land. In both cases, the resource is a physical reality, more or less tangible and the value of which can be financially determined by observing the going market value of a certain good. Regarding â€Å"Adidas†, as one of the most important global players in their industry, it is also possible to distinguish their resources. Adidas is holding more than 50.000 employees, all over the world into their workforce. CNC machines are used in the assembly line for the mass production of shoes, which is more or less their cash cow and keeps them successful. The Research and Development departments are equipped with CAM. Software’s for creating cutting edge designs. The main manufactories are located in Vietnam and China and the bases for the organization are based in Portland, Oregon (U.S) and in Herzogenrauch, Bavaria (Germany) (Adidas Group, 2013). Patents, partnerships, sponsorships and cooperation’s with universities are intangible assets, which Adidas owns. 3.2. Capabilities Especially in times where raw materials and resources are gaining more and more value, companies need to use their assets and resources in the most efficient way, in order to stay competitive. These opportunities are called â€Å"capabilities†. Capabilities can be described as organizationally embedded non-transferable firm-specific resources. (Crook, T. R., et. al., 2008). Capabilities can be divided into distinctive and threshold capabilities. On the one hand, Threshold capabilities or resources are fulfilling the general criteria a firm has to provide, in order to survive on the market. Regarding our example of Adidas, the threshold criteria for their certain industry are  buildings, land, workforce, several departments and outsourced manufactories. But on the other hand, there are distinctive capabilities, which should not just keep the company alive, but deliver a competitive advantage. (Porter, M.E.1980). Also known as core capabilities, distinctive capabilities are the talents and unique elements that are embedded within the organization. These essential characteristics are considered highly preferred, since they provide the business with what it needs to be competitive in the marketplace and also provides the firm a competitive advantage. Therefore distinctive capabilities are generating the core competencies of an organization and are the key driving forces for a company to achieve its competitive advantages. Adidas utilizes its key resources and capabilities to create value and performance excellence. Distinctive capabilities that Adidas holds are e.g., Special R & D departments and correlations (universities), sponsorship agreements (FIFA/ NBA) , diversified operations, network and portfolio, good reputation as mid-priced brand in the industry, distribution network and strategic innovation. (AdidasGroup, 2013). 3.3. Value Chain Analysis Understanding what a particular business or firm is all about, it is necessary to analyze the specific activities the company is going through in their daily work process. The competitive advantage is build up on added values the enterprise is giving their products. Michael Porter ´s â€Å"Value Chain† is modeling a chain of different activities, companies are performing in order to deliver and provide valuable products or services. Porter is differentiating between primary activities and supporting activities. Primary activities are more or less focusing on generating profit margin and to exceed the cost structure of particular products. These activities are mainly enabled by supporting activities, which are industry-specific (Daft, L.R., 1983). By sourcing the activities, process flows can be mapped and can be used to isolate specific activities, in order to decrease the cost structure. Focusing back on Adidas, the company is separating their activities as following; in-/ and outbound logistics, operations, marketing and sales and services as primary activities. Supporting activities in their  key industry are; procurement, research and development and human resource management. Value chain analysis examines business’ units and examines how products pass through the chain, in order from inbound logistics to service, market & sales and other sections. The information provided shows where in the chain products are slowed or altered from the intended design or its usage. 4. Competitive Advantage One of the most important goals of Adidas has been, to develop a strong competitive advantage, in order to stay successful and survive against the large number heavyweight competitors. The industry, in which Adidas interacts, is characterized by a set of many specific features. The extreme rivalry between Adidas and its competitors, Nike, Puma or New Balance is higher than ever before. Nevertheless, most of these brands outsourced their production and re-defined themselves as brands or marketing organizations. Despite the fact that Adidas currently ranks right behind Nike in the segment of sports shoes and sportswear market, Adidas still has been a successful business enterprise right from the beginning of their establishment by Dassler in 1945. The encouragement and application of a spirit of constant and updated technological innovation and excellence has resulted in generating such a powerful competitive advantage for Adidas that its market opponents find it hard to beat. The high performance, market orientation, technological development and brand promise, created the expected value for customers. Especially the company’s policy and corporate culture, that includes providing their customers with the necessary technological applications, in order to meet and satisfy the full needs of their end-consumer. (Kumar, V. & Reinartz W. 2012). Ultimately, this translates to tailor-made performance products for individual customers. Tailor-made is concentrating on especial product line and a particular market segment. Therefore technological superiority of its products is the primary factor of market penetration for Adidas. Nevertheless, an intense and targeted marketing mix and strategy is the second most important key driver of success. An important fact and promotional tool for products has been, to integrate celebrities and professional sport idols into their  marketing mix. This strategy seemed to be very successful and generated a steady source of profit and sales. Consumers appreciated and enjoyed the emotional experience, to share the same daily products with their idols or people, who are influencing them. Furthermore, Adidas is following the main rules of Customer relationship management. Feedback from regular customers and surveys about particular products or advertisements created a high level of customer invo lvement and loyalty, what turned out to be the most effective strategy. These methods and tools helped Adidas to develop and build a long-term profitable customer relationship. 5. Conclusion 5.1. SWOT / TOWS During the economic crisis in year 2009, many companies and enterprises suffered turnover, profit and had to restructure their business. Many different factors were key drivers for this crisis, but not successfully adapted strategies regarding supply and demand. Consultants, who are analyzing and advising enterprises, implement different methods and tools, in order to improve the client’s business. One of these powerful tools is the SWOT- Analysis. But what is SWOT? How should companies or consultants use this tool, in order to succeed? And the most important question is, is Adidas using or ever used this methods, if yes how did they? SWOT is expecting from its users to examine, internal strengths and weaknesses of their business and to summarize external opportunities and threats, in order to develop new strategies for improvement. (Bà ¶hm, A., 2008). After developing these ideas, the proper implementation of them is important as well as the examination itself. The TOWS-matr ix ore the TOWS-analysis involves the same basic process of listing strengths, weaknesses, opportunities and threats like the SWOT analysis is claiming from its users. But furthermore the TOWS analysis is a tool that enables managers to take advantage of opportunities and minimize threats by exploiting strengths and overcoming weaknesses. In case of Adidas the strengths are mainly, their strong brand value as one of the most successful brand, a strong and proven marketing strategy, networks and strong franchising, their leading position in the industry as one of the largest player in the industry, diversified  operations in different parts of the world and the most important strength is their competitive pricing. But the enterprise has also some weaknesses. Some of the weaknesses Adidas might has to struggle with are the bad performance of Reebok in non US markets, stiff competition and similar big brands which means customers have high brand switching, high cost structure and the dependency on sport industry/athletes/sponsorships (Borowski, A. 2011). External factors are including the threats and opportunities. Increasing prices for raw materials, forged product-imitation and the tough competition in the sector with Puma and Nike are the key threats, which could menace Adidas (AdidasGroup, 2013). It is possible to use strengths to avoid threats and to capture opportunities, with the help of the TOWS-matrix. Therefore strategies, which Adidas could use in order to capture opportunities and avoid threats could be, to use diversified operations in different parts of the world and strong brand recognition for sponsorships in growing markets and the well-considered usage of celebrities (not just for advertisement, also for opening private sport academies). To minimize internal weaknesses by capturing opportunities, the enterprise should keep their focus on their strong and proven marketing strategy, networking and their strong franchising, in order to stay competitve and build close long-term customer relationships (Borowski, A. 2011). A part of that, the acquisition of competitors could decrease cost structure and rivalry within the industry and safe their status quo for the future. 6. Bibliography â€Å"Adidas, Deutsche Telekom, Infineon: German Equity Preview†. Bloomberg L.P. 16 January 2008. Retrieved on 15th of March from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ah3ZhaeNWMdM&refer=germany AdidasGroup, (2013) Retrieved on 18th of March from http://www.adidas-group.com â€Å"Annual Report 2012†. Adidas. Retrieved on 10th March 2013 from http://www.adidas-group.com/en/investorrelations/financial_data/default.aspx Barney, J.B., (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management. Texas: A&M University. Borowski, A. (2011). Adidas Marketing Strategy – An Overview. Norderstedt: GRIN Verlag Bà ¶hm, A., (2008).The SWOT Analysis. Mà ¼nchen: GRIN Verlag. Crook, T. R., et. al., (2008). Strategic resources and performance: A meta-analysis. Strategic Management Journal. UK: John Wiley & Sons, Ltd. Daft, L.R., (1983). Organizational Theory and Designs, St. Paul: West Pub. Co. Freiling, J., (2001). Resource-based View und à ¶konomische Theorie: Grundlagen und Positionierung des Resourcenansatzes. Heidelberg: Deutscher Università ¤ts-Verlag. Kumar, V. & Reinartz W. (2012). Customer Relationship Management – Concept, Strategy, and Tools. Berlin/Heidelberg: Springer Verlag. Nickels, W. G., McHugh, J. M., and McHugh, S. M. (2012). Understanding Business (10th edition). UK: McGraw-Hill Education. Porter, M.E. (1980). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press. Satya Sekhar, G.V., (2009). Business Policy and Strategic Management. New Delhi: I K International Publishing House Pvt. Ltd

Walton Hi Tech industries Ltd: Overview of the Organization Structure

The purpose of this report is to provide an overview of the organization structure, and the goals and objectives of the chosen company and see how that structure plays a part in the formulation of strategies which aid to achieve those goals and objectives.1.1 IntroductionThe organization that has been chosen for this report is Walton Hi Tech industries Ltd( Walton HIL). Walton is a Bangladeshi manufacturing industry that specializes in the production of smartphones, home appliances, LED television sets, Generators, microwave ovens, refrigerators, cooking utilities, air conditioners, Dvd players, and motorcycles for the local Bangladeshi market, as well as the south Asian market. The company has a strong research and development division and the latest manufacturing techniques and equipment for which, the products are of a high quality, but also at a very competitive price point.1.2 Organization goals and objectives of WaltonThe ultimate goal of Walton HIL Ltd is to take its place amo ng the top consumer electronics, Automobile, and home appliance industries in the world by 2015. Previously, it had been thought that consumer products made in Bangladesh cannot be of a quality that is good. Walton has made tremendous efforts to make sure that this type of a perception could be scrapped from the minds of people, thereby giving them confidence in their products. The  following are the objectives of Walton HIL Ltd:To push the boundaries of innovation and to shape the future- foster creativity to turn people’s imaginations into reality and envision technologies that are one step further. To enhance the company value and open up new business opportunities- Walton strives to build a strong brand name image both in the local market and the International market. The profitable growth that it sustains makes the company a prime investment for shareholders.Empowering the people in the organization to achieve world class performance- Walton considers its people as the core of the organization and its competitive advantage. Respect towards the employees and open communication ensures that they give their best efforts and work hard to achieve excellence. To enter into the U.S and E.U market by 2015- Walton aims to expand its reach into the U.S and E.U markets by creating international brands that get a maximum price in those markets. 1.3 Organization structure of Walton:From the information I gathered from the website of the company, it is evident that Walton has a product based organization structure. The Company’s efforts are centered around its main products, and extending their reach to other markets abroad. Employees from departments like Sales, Marketing, Finance, operations, and so on, report to the vice president supervising the production of a specific product. For example, the finance, operation, marketing, and sales departments reporting to the vice president handling the production of Motorcycles.All the vice presidents handling the operations of each product line will report directly to the CEO of the company. This type of organization structure has some advantages, as well as some disadvantages. The Advantages are: More focus on products and customers- the focus on products and customers ensures that quality products are made, which deliver satisfaction to the customers It is easier to evaluate the performance of the product.Product responsiveness to market changes from time to time. So it is possible to know whether the product has been successful in the market or not. There is less of a burden on the CEO, to make operating decisions. The disadvantages of this type of structure are:There may be limitations on the economies of scale achieved as, companies with such an organization structure may not have yet expanded to other major potential international markets such as, Europe and America. There tends to be multiple product groups. So it may be difficult to choose between those groups. Conflicts can ari se between the product groups and the corporate objectives.1.4 How the Organization structure of Walton helps to formulate strategiesFormulating corporate strategies for a company requires analyzing the industry or environmental conditions in which the company operates. Assessing the strengths, weaknesses, opportunities, and threats of a company is also important. The proper analysis of these factors will greatly determine whether the strategies formulated will be successful or not. The product based organization structure of Walton means that greater emphasis is given on the products of the company, and customer satisfaction.So therefore, the structure will tend to fuel the need for more research and development and analysis which will give the company a competitive advantage over its rivals. In order to do so, a company has to either differentiate its products from the competition and set a premium price justifying the ‘uniqueness’ of the products, or offer products a t a low and attractive price that still meets the quality standards. Walton primarily aims to offer products at a reasonable price point that are of a high quality.So the tendency to put the customer’s needs and requirements at a top priority helps the company design and manufacture products that not only has high demand in the local market, but also maintains a high amount of export value in foreign countries. A SWOT analysis of Walton can illustrate the competitive advantages or disadvantages that are present within the company, and furthermore examine how the objectives can be achieved.The strengths of the company are: Walton is the only company in Bangladesh that diversifies production in multiple industries. Other local competitors of Walton only concentrate production on mainly smartphones and mobile phones. Walton has achieved various stringent quality standards certificates, which puts the company above the competition in terms of quality control.The Smartphonesmanufa ctured by Walton carry a price that is very competitive and at the same time offers a wealth of features. So they can compete quite well with even some of the biggest players in the mobile phone industry, just because of the price point. Walton has the latest machines and testing equipment in its production plant, including 3D printers, which allows rapid prototype models to be made. The weaknesses of Walton are:There may be too many products for the company to manufacture. While Walton manufactures the latest LED television sets, they are also producing the old CRT television sets which basically is almost phased out, and in not much demand. Walton may be a bit too late in considering to step into the pc market as, it is already saturated with lots of chinese pc makers and other premium pc manufacturers which may prove to be quite some tough competition to deal with. The opportunities of Walton are:Walton has a clear chance and opportunity to enter into the E.U and U.S markets by 2 015. Those are very potential markets for Walton which can increase their export revenue by a mile. If Walton can shift production from motorcycles to cars, it could open up yet another huge potential market for the company. An entry level smartphone can be manufactured by the company to increase the sales of the Walton Primo brand.The following are the threats of Walton:Increasing pressure from other competitors, particularly the Indian motorbike manufacturers like Bajaj, and Hero Honda, who are leading the motorbike industry. Walton still hasn’t built up a brand image for their LED television sets. So consumers may tend to purchase a regular LED TV from another renowned brand like Samsung, instead of the smart TV sets of Walton at a cheaper price. Chinese smartphone maker Huawei has started to supply their windows powered handsets in collaboration with Rangs in Bangladesh. They could eventually capture a significant market share in Bangladesh before Walton. So Huawei is a t hreat to Walton.From the SWOT analysis that has been carried out, it is evident that achieving the objectives of the company is not so simple as it seems. While Walton has already created a brand value among its customers, they still have a long way to go. If they can enter the E.U and U.S market, the company will have a great chance to solidify their brand image and strengthen the company name. As mentioned earlier, Walton has a product based organizational structure. Now in this type of structure, the vice presidents all report to the CEO.And since the vice presidents co-ordinate the operation of the departments such as accounts, finance, HR, and so on, these departments work smoothly, as there is no delay in decision making. The burden of decision making to the CEO is thus lessened. The Product based structure is all about the products of the company. so therefore the performance of the product in the market is quite important. The structure will force the company to undergo rese arch and development into the latest products, so that the company can increase their profits. In terms of expansion into other potential markets of the company, the product structure keeps the company performing at their level best to improve upon the current line of products, and come up with new products.The threats, and weaknesses of the company may play a part in creating a barrier to achieving some of the objectives of the company. For example, if Walton wants to expand into the E.U and U.S market, they have to export their smartphones. In this case, one question that would come into play is, how saturated is the E.U and U.S markets with chinese handset manufacturers? This question will help the company take into account the competition it will be facing and market the product accordingly so it has an edge over the competition. So the threats and weaknesses create a barrier, but the structure helps to formulate the strategies in such a way that the barriers can be overcome.1.5 Recommendation:The organization structure of Walton helps to bring out new products through research, and helps to formulate strategies to achieve goals and objectives. One of the objectives of the company states that by 2015 it will expand into the U.S and E.U markets. After expanding into those markets, the product based organization structure may hold the company back. So then there may be a need for a change in organization structure of Walton as, the company will have to ship products to different geographic regions. So a geographical/regional organization structure might be more suitable for  Walton at that point. A geographical organization structure means that the regional department/headquarters is situated in each region. So all the operations can be carried out locally in that region.1.6 Conclusion:Walton’s organization structure fuels its need for better research into products. Walton has a bright future ahead, with the visions planned. The company has plans to expand into other markets such as the computer market. Not only that, Walton also envisions supplying the local market with their own motorcycles, and therefore attempt to curb the imports of motorcycles to Bangladesh. The company is doing its best to make sure its future plans are successful and indeed come out as one one of the top electronics company among the world in the year 2015.

Analysis of Tetrahydrocannabinol

THC is a substance that has been around in civilizations around the world for many, many years. The discovery of THC occurred after discovering that morphine attached to receptors in the brain which caused an individual to feel high, chemists in the 40’s and 50’s found that there were specific receptors for THC in the brain and how there is a natural chemical in our body that is similar to THC. It wasn’t until 1963 that two scientists named Mechoulam and Yehiel Gaoni isolated, and first synthesized THC. In the world’s history, THC has had a long journey. The first discoveries of it being used were in hemp ropes, and burial clothes made by the Chinese in 10,000 BC. In the middle Ages, Cannabis was grown abundantly throughout Cairo and was never successfully banned due to its use being reinforced by the Koran. When France invaded Napoleon attempted to further the ban on the drug, but people started to spread the word of the wonderful effects it can bring. In the 1900’s the drug was outlawed because a man named Harry J. Anslinger had a personal problem with the drug and in 1937 it was finally banned for good by the Federal Bureau of Narcotics. (The Role of Chemistry in History, History of THC) THC (Merck index number of 9283) is naturally found in a liquid state which is commonly unknown because when it is in the crystal on the plant that is because it is mixed in with other cannabinoids and varieties of terpenes. (Chemical Ecology of Cannabis, David W. Pate) Due to the IUPAC name of THC, tetrahydro-6,6,9-trimethyl-3-pentyl-6-dibenzo[?,d]pyran-1-ol, and the structural formula of THC. I believe that THC is actually in the alcohol family of Organic chemistry with the Molecular formula of C21H30O2. The lethal dosage of THC has only been tested in labs with rats, but it can be calculated to reveal how much THC would need to be smoked to be considered a lethal dosage to human beings. The LD50 in male rats is 1270 mg/kg, and 730 mg/kg in female rats when taken orally in sesame oil, and 42 mg/kg among both genders when inhaled. Cannabis Chemistry, Erowid) These statistics, when applied to humans, means that for a human being to overdose on THC, they would have to smoke 15,000 lbs of marijuana in under 14 minutes. Due to the low level of risk from THC, it is used mainly in the world of medicine to help with many types of problems that can commonly be brought by Cancer, and AIDS. One medical issue that THC is used to help with is arthritis, which has mainly become popular in Britain. The larger area of medicine that THC is actually prescribed for is Complications that come with chemotherapy and AIDS Wasting Syndrome. In both cases, it is used to reduce pain, and damper the suffering in an individual. But, it is also used to counteract the appetite loss, and nausea that comes with chemotherapy. AIDS Wasting Syndrome is where an AIDS patient begins to give up hope, and loses their appetite. Which is where, once again, THC comes into play reconnecting that relationship with food. There are many other uses for medical marijuana such as Glaucoma, Multiple Sclerosis, Depression, Movement Disorders, Parkinson’s disease, dystonia, chronic pain, diabetes, Addiction, asthma, brain injury/stroke, crohn’s disease, ulcerative depression, mental illness, epilepsy, fibromyalgia, high blood pressure/hypertension, migraine, Nail Patella Syndrome, Schizophrenia, Alzheimer’s Disease, and Tourette’s syndrome, but not enough research have been done on these topics to be able to argue the beneficial use of THC as a cure. Some common reactions that a human can have to THC in marijuana from either smoking too much, or being allergic can include depression, anxiety, fatigue, short-term memory loss, dizziness, nausea, tempered coordination, palpitations are experienced as generalized discomfort, and ill-being. Also, acute anxiety or panic attacks from a feeling of loss of self, or loosing of one’s mind. (Acute Effects of Marijuana, NCMDA) Many studies were done that tried to look at the link between juvenile crimes, and the users of marijuana. A few societal issues that were found to be most commonly linked include Truancy, low self-esteem, delinquent behavior (Stealing, vandalism, fare dodging), having delinquent friends, hanging out on streets in boredom, and other behavioral/mental health issues(those in special education programs/schools tend to use more) (The global youth network, Drug trends) Some short term psychological effects of THC can include distorted sense of time, paranoia, magical or â€Å"random† thinking, short-term memory loss, anxiety, and depression. It also blocks certain receptors in your brain that can cause your brain to be unsure whether it can achieve certain tasks or not which can lead to the paranoia, and uncertainty in someone under the influence of THC. (WedMD) When you grow a Cannabis plant, THC seems to be more abundant in that plant when grown in a drier climate. In 1975 two scientists, Latta and Eaton, ran a study that showed when a Cannabis plant is put under more stress in the growing conditions, such as the lack of soil moisture available and competition with neighboring plants, increased the production of delta-9-THC. (Chemical Ecology of Cannabis, David W. Pate) After conducting many hours of research on this topic, I believe that THC is actually a better substance for you than many others out there. It has never caused a single death, and is greatly beneficial to medical treatments of the chronically ill.

Drug Discovery .. (Translation Of Science Into Medicines) Essay

Drug Discovery .. (Translation Of Science Into Medicines) - Essay Example any drug development studies failing to enter clinical practice after spending billions of dollars during their development, the scientific community is taking steps to create a more focused, effective and less expensive methods to develop new drugs (Tho & Graham, 2006). The probability of developing such drugs is becoming increasingly common with advancements in cellular and molecular biology. The field of translational studies involves the use of these latest techniques in drug development prior to their entry in to the clinical trial phase. These techniques help to provide a comprehensive view of the disease, identify molecular targets and then to develop specific drugs that would act against these targets. These lead compounds can be selected from a vast array of chemicals using screening techniques such as chemical library screening. Other techniques used in translational studies are microarray technique which is used to study the expression of genes and the use of genetically e ngineered humanized mouse which is useful in studying the biological responses to drugs in vivo. In addition, toxicology studies reveal potential drug toxicities to major organs such as the liver and the heart. More recent development include the use of computer simulation tools that are helpful in predicting the systemic exposure of the drug within the human body, pharmacokinetic and pharmacodynamics studies to determine the efficacy of the drugs developed, and the development of biomarkers prior to clinical testing of the drug which could help in understanding disease progression and its prognosis (Yu, 2011). The major challenge posed by translational research is integration of data obtained from these various technologies and using them appropriately to determine the effectiveness of clinical studies (Tho & Graham, 2006). 1. Tho, L. M. & Graham, K. (2006) Translational Research- A Multidisciplinary Approach. Annals Academy of Medicine. [Online] 35 (6), 441-442. Available from