Bancassurance and assurancebank strategie Essay

Bancassurance and assurancebank strategie - Essay Example Hence, an opening up of the markets eventually led the production houses to operate in an environment saturated with stringent competition. The companies worldwide have responded to this change by adapting themselves into newer strategies while designing their financial plans. Many firms have introduced added features in their operations so that they are able to meet more of the people’s demands and thus are able to capture a higher fraction of the market. Since it becomes easier for people to shop or transact under the same roof, this introduced feature is enough to lure them (Staikouras, 2009). One such move that was simultaneously embraced by the insurance as well as the banking sector was that of indulging themselves in each other’s activities. Hence, two new strategies of ‘bancassurance’ and ‘assurancebank’ were introduced in some of the units in the banking and the insurance sectors respectively (Nurullah & Staikouras, 2008). For instance, in Europe, there is the HSBC Bank which has adopted the strategy of ‘bankassurance’ while there is the ING Group which has embraced the other strategy. The strategy of bancassurance implies an embedding of the insurance sector in the activities of the banking sector (Ennew & Waite, 2007). The advantage to the customers in case such a strategy is introduced are, firstly, they are able to transact under a single roof which is time as well as cost-saving, and secondly, the moment that a customer takes some loan, he automatically is entitled to the insurance benefit that accompanies it. Thus, if the loan is meant for some investment and it fails to reap the returns it is expected to yield after a specified time period, then an insurance coverage will help him to forgo the loan and thus the person’s tremor is reduced by a great extent. The HSBC Group adopted the

DMV-Week Three Essay Example | Topics and Well Written Essays - 250 words

DMV-Week Three - Essay Example The five whys will help identify a core problem at the DMV. The first question one might ask is â€Å"Why are the lines so long† - lines being the symptom. The answer to this would probably be â€Å"too many people and not enough staff.† The second logical question would be â€Å"why are there not enough staff to quickly and efficiently address all the patrons?†, to which a DMV apologist might answer â€Å"because there are not enough resources allocated to staffing the DMV.† Finally, a fourth â€Å"why† question will get at a cause of the issue. â€Å"Why are not enough resources allocated to the DMV to allow it to operate properly?† to which the answer may be â€Å"because there is no incentive to improve customer service.† Finally, the question to get at the root cause would probably be â€Å"why is there no incentive to improve customer service?† with the answer being, â€Å"because the DMV has a monopoly on its services.â €  One solution might then be to contract it to outside companies, using wait times as an evaluation tool, or else giving bonuses to DMVs that handle the most patrons the fastest to incentivise short wait times and create artificial

Study of existing Reverse Logistics framework Retail industry

Study of existing Reverse Logistics framework Retail industry Abstract: Reverse Logistics is a very complex and specialized area of any supply chain and it involves handling individual incoming parcels, opening and inspecting products, communicating with internal departments, customers and vendors and then directing products into disposition channels which will provide the highest value. Efficient Reverse Logistics system can transform an increasingly costly and complex returns management process into a competitive advantage. Integration of reverse logistics in specific retail sectors is critical for sustainability. The aim of this project work is to identify and examine the reverse logistics management in the retail industry in order to understand the existing application of reverse logistics and then propose relevant recommendations to improve efficiency in reverse logistics management. After critical analysis of the existing reverse logistics management in the selected retail sectors, potential ways to improve the efficiency of reverse logistics activ ities would be recommended in the selected retail sectors. Chapter 1: Introduction Twenty-years ago, supply chains were busy fine-tuning the logistics of products from raw material to the end customer. Products are obviously still streaming in the direction of the end customer but an increasing flow of products is coming back. This is happening for a whole range of industries, covering electronic goods, pharmaceuticals, beverages and so on. For instance distant sellers like e-tailers have to handle high return rates and many times at no cost for the customer. It is not surprising that the Reverse Logistics Executive Council has announced that US firms have been losing billions of dollars on account of being ill-prepared to deal with reverse flows (Rogers and Tibben-Lembke, 1999). While some actors in the chain have been forced to take products back, others have pro-actively done so, attracted by the value in used products. One way or the other, Reverse Logistics has become a key competence in modern supply chains. Many companies that, previously, did not devote muc h time or energy to the management and understanding of reverse logistics have begun to pay attention. Definition of reverse logistics In 1998 Stock defined reverse logistics as the role of logistics in product returns, source reduction, recycling, materials substitution, reuse of materials, waste disposal and refurbishing, repair, and remanufacturing (1998, p. 20). In a 1998 paper in the Journal of Business Logistics Carter and Ellram adopted a similar definition, calling it the process whereby companies can become more environmentally efficient through recycling, reusing, and reducing the amount of materials used (p. 85). If the focus of logistics is the movement of material from the point of origin toward the point of consumption (Council of Logistics Management 1999), then the focus of reverse logistics should be the movement of material from the point of consumption toward the point of origin. Rogers and Tibben-Lembke in their 1999 article emphasized a clear definition of reverse logistics drawn in essence from the Council of Logistics Managements definition given as follows, The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing or creating value or proper disposal (Rogers and Tibben-Lembke 1999, p. 2) This dissertation focuses on the reverse logistics activities in the retail industry with an analysis framework concerning the cost-benefit, visibility-information flow and efficiency. A reverse logistics flow is more reactive with much less visibility. The figure 1 depicts a typical reverse logistics information flow for the retail channel. For instance, when a consumer returns an item to a retail store, the store collects he items to be sent to a centralized sorting facility. At the time, information about the item and its condition may be entered into retailers information system and forwarded to the processing centre. Figure Reverse logistics in Retail: an epitome of information flow Delineation of reverse logistics definition Since Reverse Logistics is a relatively new research and empirical area, there are other literature terms, like reversed logistics, return logistics and retro logistics or reverse distribution, sometimes referring roughly to the same. In fact, the diversity of definitions with respect to recovery practices is a well-recognized source of misunderstandings both in research as in practice (Melissen and De Ron, 1999) In this dissertation I would like to remark that Reverse Logistics is different from waste management as the latter mainly refers to collecting and processing waste (products for which there is no new use) efficiently and effectively. The crux in this matter is the definition of waste. This is a major issue, as the term has severe legal consequences, for instance, it is often forbidden to import waste. Reverse Logistics concentrates on those streams where there is some value to be recovered and the outcome enters a (new) supply chain. Reverse Logistics also differs from green logistics as that considers environmental aspects to all logistics activities and it has been focused specifically on forward logistic, i.e. from producer to customer (Rodrigue et al., 2001). The prominent environmental issues in logistics are consumption of non-renewable natural resources, air emissions, congestion and road usage, noise pollution, and both hazardous and non-hazardous waste disposal (see Camm, 2 001). Finally, reverse logistics can be seen as part of sustainable development. The latter has been defined by Brundland (1998) in a report to the European Union as to meet the needs of the present without compromising the ability of future generations to meet their own needs. In fact one could regard reverse logistics as the implementation at the company level by making sure that society uses and re-uses both efficiently and effectively all the value which has been put into the products. The border between forward logistics (from raw materials to end user) and reverse logistics (from end user to recovery or to a new user) is not strictly defined as one can wonder about what raw materials are, or who the end user is, in modern supply chains. For instance, used/recovered glass is a substantial input for new production of glass. A holistic view on supply chains combining both forward and reverse logistics is embraced by the closed-loop supply chain concept (Guide and van Wassenhove, 2003). Recovery practices are framed within the supply chain, and the encircling aspect of the process as a whole is therefore stressed: having either 1) a physical (closed-loop): to the original user (see Fleischmann et al., 1997); or 2) a functional (closed-loop): to the original functionality. Thinking in term of closed-loop supply chains emphasizes the importance of coordinating the forward with the reverse streams. Actually, whenever both forward and reverse flows are involved, co-ordin ation has to be minded (see Debo et al., 2003). This happens, either in closed- or open-loops (the latter refers to when neither the original user nor original functionality are in the reverse logistics process). Aim and objectives of the project Reverse Logistics is a very complex and specialized area of any supply chain and it involves handling individual incoming parcels, opening and inspecting products, communicating with internal departments, customers and vendors and then directing products into disposition channels which will provide the highest value. Efficient Reverse Logistics system can transform an increasingly costly and complex returns management process into a competitive advantage. Integration of reverse logistics in specific retail sectors is critical for sustainability. The aim of this project work is to identify and examine the reverse logistics management in the retail industry in order to understand the existing application of reverse logistics and then propose relevant recommendations to improve efficiency in reverse logistics management. In order to achieve this objective the project work would involve Identifying the key retail sectors in which reverse logistics has and will have potential importance Examine the various reverse logistics activities in the selected retail sectors Analyze the effectiveness of reverse logistics management from the perspective of efficiency, profitability and environmental aspects Propose recommendations to improve the efficiency of reverse logistics management Report organization The dissertation consists of five main chapters which is organized as follows Chapter 1 introduces the research topics as well as the main objective of this study. Moreover, this chapter provides some of the background information about reverse logistics. It also provides a brief detail of the research methodology and the organization of the dissertation. Chapter 2 provides the basic knowledge of reverse logistics process together with key success factors and barriers of effective reverse logistics management are introduced. The previous papers are discussed in the literature review section. Chapter 3 discusses the information about research design and data collection method. The section elucidates the research approach and the relevant frameworks to be included in the research conduct. This section discusses about the methodology of how the reverse logistics management is analyzed to address the research questions. Chapter 4 discusses the analysis related to the reverse logistics trends and the effectiveness of reverse logistics management from the holistic perspective of cost, efficiency and environmental aspects. The key drivers and persistent barriers for reverse logistics management for the selected retail companies are discussed. Lastly, chapter 5 concludes the result of the finding and the analysis. The recommendation and the discussion about the future research are discussed. Chapter 2: Literature review Background Retailers constantly focus on strategies to gain competitive advantage and to improve financial performance. In doing so, emphasis is more frequently being placed on logistics, including tactical initiatives such as automatic replenishment programs, real-time information sharing, and advanced demand management techniques designed to improve internal efficiencies (Li 2002; Daugherty, Myers, Autry 1998; Seideman 2002).However, retailers also compete on the basis of effectiveness, striving for increased customer satisfaction. One competitive tactic used to enhance customer satisfaction includes the implementation of liberalized product returns policies. By taking a more consumer friendly approach in their return policies, retailers communicate a higher level of service to patrons, and thereby increase customer satisfaction with ultimate goals of higher sales and profitability (Coopersmith 1990; Krapfel 1988). As a result of return policy liberalization, acceptance of product returns is now commonplace; returns are reported to be as high as 10-15 percent of sales in some retail industries (Rogers Tibben-Lembke 1999), and are thought to be even higher in catalog and internet retailing, with typical return rates of up to 40 percent (Rogers, Lambert, Croxton, Garcia-Dastague 2002). However, the acceptance of returns places stress on the retailers logistics function. Whereas typical logistics activities are engineered to optimize flows from producer to consumer, reverse logistics activities move product, information, and currency in the opposite direction. While significant efforts have been expended in streamlining and optimizing retail logistics activities, the accomplishments associated with these activities do not always directly apply to the reverse logistics process. The forward movement of goods through the supply chain generally results in large receipts of goods at clearly defined in tervals (such as when inventory levels reach critical safety levels, or at pre-specified and scheduled times), with the ultimate sale executed in smaller quantities to end-users. On the other hand, reversed supply chain flows are less predictable, occurring at various times and for various reasons, and thus, the costs of returns handling can be high (Rogers et al. 2002; Stock 1998). One area of concern related to reverse logistics that has been largely ignored by academic research and practicing retailers is the financial implications of reverse logistics activities, especially as related to firm liquidity. When products reverse directions in a supply chain, it can happen quickly and without notice. While effective reverse logistics activities generally result in value reclamation and increased cash inflows, there can be periods where significant unexpected cash outflows occur. This is often due to the time lag between the moment the firm recovers the value from the returned product and the assumption of costs incurred in the reverse logistics process. Therefore, financial management of the reverse logistics process becomes salient, and needs to be a retailer focus on an ongoing basis. Reverse logistics process: A typical reverse chain process is shown in Figure 2. But a distinction should be made between different categories of returns: Commercial Returns Returns for which there is an immediate demand at another market location or segment. Possible causes: customer dissatisfaction, catalogue sales, overstocks etc. Commercial returns occur in the sales phase or shortly after. Repairable Returns Defects and suspect components (modules/parts) from field (exchange) repair activities or products under warranty. Customer is entitled to a replacement product. End-of-use Returns Returned products/components which are not of longer use to the original owner, but for which new customers can be found. Reasons: end-of-season, end-of-lease, trade-in, product replacements etc. End-of-life Returns Items of no remaining use, which are processed due to contractual or legislative obligations. These returns are often collected and processed according to legislative obligations. Recalls Products recalled by the manufacturer due to a condition or defect that could affect its safe operation. Work on a recall is completed at no cost to the product owner. Other types of returns, such as refillable units and reusable carriers, are not included in this study. Figure Reverse logistics process Returned goods often go through the following activities depending on the return type: Product Acquisition Retrieval of the product back from the market. The timing, quantity, quality and composition of returned product need to be managed in close cooperation with other supply chain parties. Collection Logistical activities (such as transportation, consolidation, transhipment and storage) to obtain the products back from the market and transport them to facilities involved in the other stages. Sorting, Testing Disposition The classification (according to quality and composition) of returns and determination stage of the route the product will take in the reverse chain. Market and strategic conditions are taken into account in the disposition decision. Recovery The process of recovering value from the returned product by re-use, repair, refurbishment, recycling or other types of recovery. Redistribution Sales Basically, no value recovery has materialised until the recovered products, component or materials are brought back into a forward supply chain. Review of Past research works: Financial aspects of RL: Raimer (1997) indicated that returns are, and always have been, a fundamental part of retailing. His estimate was that reverse logistics account for between 5 and 6% of total logistics costs in the retail and manufacturing sectors. Daugherty et al. (2001), in a survey of US catalogue companies, reported reverse logistics costs on average to be 9.49% of total logistics costs. Rogers and Tibben-Lembke (1998) identified returns for different industries, with figures being recorded of 50% (magazine publishing), 20-30% (book publishers), 18-35% (catalogue retailers) and 10-12% (electronic distributors). Returns of merchandise bought over the Internet are expected to escalate as online sales grow. Consequently, companies in many sectors are facing a change of customer interface possibilities and subsequent supply chain dynamics (Rowley 2000). Returns are high because customers purchase online items on trial until they can handle them physically. Moreover, in mail order, especially ladies f ashion, return rates of 60% are common (Wheatley 2002). Given this level of returns, it is important to recognise that reverse logistics can have a significant bottom line impact on a company, and the ability to address opportunities may depend ultimately on management perceptions of reverse logistics (Stock 1998, Mason 2002). Autry (2005) argued that managers need to realise that effective handling of reverse logistics transactions can result in economic and strategic benefits. In practice, some companies seem to ignore the significance of reverse logistics to their supply chain, some companies have gradually recognized its importance, whilst others review reverse logistics as a strategic variable. It has been suggested that innovator firms that develop an expertise in reverse logistics activities and recognize them as a set of business processes that add value can potentially generate revenue, improve customer satisfaction, achieve significant cost savings and deliver a competitive edge in their various markets (Stock 1998, Carter and E llram 1998). Given such potential benefits from developing reverse logistics processes, it is important to recognize the existence of barriers that may hinder the implementation of reverse logistics processes. Ravi and Shankar (2005), in a study of the automobile industry, identified 11 barriers to the application of reverse logistics. These include resistance to change, lack of appropriate performance measures, lack of training related to reverse logistics, lack of commitment by top management and lack of strategic planning. Dowlatshahi, S. (2008) in his cost-benefit analysis for reverse logistics management considered and analysed the relevant literature in RL and identified the present state of theory in RL regarding cost-benefit. The research methodology used is exploratory case study approach. The cost-benefit is analysed and evaluated in terms of specific sub-factors associated with it by use of two in-depth case studies. Two companies from different industries engaged in RL operations are considered. The analysis of these case studies resulted in propositions and insights regarding RL operations. Based on these insights, the cost-benefit sub-factors, propositions, and a framework for effective design and implementation of RL operations are provided. This framework determines the appropriate sub-factors and how the return process of products/parts with respect to cost-benefit works. In conclusion, the managerial implications and future research directions were provided. There are several parties involved in the management of the reverse logistics process and the way in which such interfaces are managed is crucial in both environmental and economic terms. As returns management becomes increasingly recognised as an area of supply chain importance, retailers are either developing in-house capabilities or outsourcing the operation to third-party logistics (3PL) providers (Krumwiede and Sheu 2002, Meade and Sarkis 2002, Hughes 2003). These supply chain interfaces occur in a number of different ways. For example, interfaces occur between retailers and manufacturers, between retailers and 3PLs and between end customers and retailers. There are many tensions occurring between these different players in the process. Currently, some companies prefer to build a separate infrastructure in order to facilitate the operation of the reverse logistics process. Other companies want to optimize the utility of their physical network by combining the reverse operation w ith the forward operation. In addition, centralized returns are a related possibility when companies are considering the construction of their physical network. Environmental aspects of RL: Environmentally friendly practices and the need to maintain sustainable development are important aspects in the debate surrounding reverse logistics. By not embracing sustainability, organizations face consequences in terms of increased economic and social liability (Savits 2002). Sustainable development embraces the triple bottom line philosophy of not compromising the future needs of society, the economy and the environment. In many reports on corporate social responsibility, sustainable transport is a significant feature with attempts to cut harmful emissions whilst maintaining economic operations. A driving force behind the search for improvements in sustainable distribution was the document published by the Department of Transport (1998) entitled A new deal for transport: better for everyone. Efficient integration of forward and reverse logistics has a significant part to play in this process. In this drive for sustainable distribution, it is important to recognize that account ing has a role to play. Mention has already been made of Corporate Social Responsibility Reports. There is a danger that traditional models of accounting and finance are actively supporting and encouraging unsustainable organizations and institutions (Gray 2002). Accountants need to be engaged in debates about environmental strategy, the institutional framework (government incentives) needs to support environmentally sound behaviour, and the change agents (such as environmental accounting) need to be embedded within the organization (Larrinaga-Gonzalez and Bebbington 2001). Reverse logistics management: Many tools exist to support the management of the reverse logistics process. The literature identifies mathematical models to support supply and transportation decisions (Du and Hall 1997). Also, the management of inventory can be supported through a range of mathematical models and enterprise resource planning (ERP) information systems (Boykin 2001, Teunter 2002). Hu et al. (2002) put forward a cost-minimisation model for minimising the total operating costs of a multi-time-step, multi-type hazardous waste reverse logistics system. Keeping with the theme of green supply chain management, Sheu et al. (2005) presented an integrated logistics operational model to co-ordinate the cross-functional product logistic flows and used-product reverse logistics flows in a green supply chain. Information communication technology (ICT) plays a significantly growing role in supporting reverse logistics operations and Daugherty et al. (2005) called for resources to be focused on developing informat ion technology. In recent years there have been a number of developments and improvements in dedicated reverse logistics software (De Brito et al. 2002). Developments in satellite tracking systems have also enabled vehicles to navigate better their way through congestion and to monitor and improve fuel consumption. The continuing development of ICT offers opportunities for significant economic and environmental benefits in the reverse logistics process. Drivers of reverse logistics: There are a number of drivers of reverse logistics and many of these actually occur as a result of product and service decisions taken at the design and planning stage of product and service provision. Interestingly, Sciarrotta (2003) illustrates how Philips Consumer Electronics place great emphasis on trying to prevent returns rather than dealing with them later. In the retail sector, however, strategic decisions concerning on-shelf availability together with a liberal returns policy amongst retailers are significant factors in the level of returns. Legislative factors (e.g. WEEE Directive to be implemented June 2006) are also becoming increasingly important, with new legislation focusing on the need to dispose of and recycle products in an environmentally friendly manner. In summary, the literature review has provided an overview of the issues that need to be considered when reflecting upon the management of reverse logistics processes. The significance of reverse logistics processes, in terms of both bottom line performance and environmental impact, has been highlighted in the literature. Also, the need to recognise the drivers of reverse logistics is highlighted together with the requirement to manage the interfaces between different members of the supply chain. Finally, the literature has identified numerous tools that can be used to support the reverse logistics process, and opened up the possibilities for using accounting information in this context to facilitate improved economic performance, supply chain efficiency and sustainability. Determinants of reverse logistics (Ravi et.al, 2005) Economic factors both directly and indirectly (de Brito Dekker, 2003), legislation (de Brito Dekker, 2003), corporate citizenship (de Brito Dekker, 2003; Rogers Tibben-Lembke, 1998) and environmental and green issues (Rogers Tibben-Lembke, 1998) are the four determinants of reverse logistics taken into account in this research. These are briefly described below. Economic factors Economics is seen as the driving force to reverse logistics relating to all the recovery options, where the company receives both direct as well as indirect economic benefits. It is seen that companies continually strive for achieving cost savings in their production processes. If a firm does reverse logistics well, it will make money (Stock, 1998). The recovery of the products for remanufacturing, repair, reconfiguration, and recycling can lead to profitable business opportunities (Andel, 1997). Reverse logistics is now perceived by the organizations as an investment recovery as opposed to simply minimizing the cost of waste management (Saccomano, 1997). A reverse logistics program can bring cost benefits to the companies by emphasizing on resource reduction, adding value from the recovery of products or from reducing the disposal costs. Guide and Wassenhove (2003) give an example of the US firm named ReCellular, which by refurbishing the cell phones, had gained economic advantage. Thus, the economic drivers of reverse logistics lead to direct gains in input materials, cost reduction, value added recovery and also in indirect gains by impeding legislation, market protection by companies, green image for companies and for improvement in customer/supplier relations. Legislation Another important driver for the reverse logistics is legislation. Legislation refers to any jurisdiction that makes it mandatory for the companies to recover its products or accept these back after the end of life of the product. These may include collection and reuse of products at the end of the product life cycle, shift waste management costs to producers, reduce volume of waste generated, and the use of increased recycled materials. For example, the Waste Electrical Electronics Equipment directive encourages a set of criteria for collection, treatment and recovery of waste electrical and electronic equipment and makes producers responsible for financing these activities (WEEE, 2003). There has also been a restriction on the use of hazardous substances in the production processes, which facilitates the dismantling, and recycling of waste electronics. A reverse logistics decision for the EOL computers should ensure that the end-of-life products are retired in a way that is compli ant with existing legislation. Corporate citizenship Another driver for the reverse logistics is the corporate citizenship that concerns a set of values or principles that impels a company or an organization to become responsibly engaged with reverse logistics activities. Reverse logistics activities can lead to increase of corporate image (Carter Ellram, 1998). A good example in this context would be of Paul Farrow, the founder of Walden Paddlers, Inc., whose concern of the velocity at which consumer products travel through the market to the landfill, pushed him to an innovative project of a 100-percent-recyclable kayak (Farrow, Johnson, Larson, 2000). In 1996, Hanna Andersson, a million direct retailer of infants and toddlers clothes developed a program called Hannadowns in which they distributed the childrens gently worn returned clothes to schools, homeless shelters, and other charities (Spence, 1998). Nike, the shoe manufacturer encourages consumers to bring their used shoes to the store where they had purchased them after their usage. They ship these back to Nike plant where these are shredded and made into basketball courts and running tracks. Nike also donates the material to the basketball courts and donates fund for building and maintaining these courts, thus enhancing the value of brand (Rogers Tibben-Lembke, 1998). It is seen from the last two examples that few firms are acting as good corporate citizens by contributing to the good of the community and assisting the people who are probably less fortunate than their typical customers. Environment and green issues Concern for the environment and green issues is also one of the drivers of reverse logistics. The reverse logistics lead to benefits of environment (Byrne Deeb, 1993; Carter Ellram, 1998; Wu Dunn, 1995). Hart (1997) proposes that the principle of the ecological footprint indicates the relevance of greening initiatives for countries. Reverse logistics has led to competitive advantage to companies which proactively incorporate environmental goals into their business practices and strategic plans (Newman Hanna, 1996). Managers are giving increasing importance to the environmental issues (McIntyre, Smith, Henham, Pretlove, 1998). The environmental management has gained increasing interest in the field of supply chain management. Handfield and Nichols (1999) mention greening as a critical future avenue in this area. Murphy, Poist, and Braunschweig (1995) have found that 60% in a group of 133 managers surveyed considered the issue of the environment to be a very important factor and 8 2% of them expected that the importance would increase in the years to come. A green image of producing environmentally friendly products has become an important marketing element, which has stimulated a number of companies to explore options for take-back and recovery of their products (Thierry, 1997). A reverse logistics operations for EOL computers should ensure that the environmental and green issues are taken into account. Summary of literature review: This brief overview of the literature provides a framework for addressing the research questions identified in the study. The literature covers the definition of reverse logistics, the scale of the problem, the bottom line impact and potential barriers, the drivers of reverse logistics, supply chain interfaces, methods suggested in improving the reverse logistics process management and importance of sustainability issues. Chapter 3 Methodology: Research objective: The aim of this project work is to identify and examine the reverse logistics management in the retail industry in order to understand the existing application of reverse logistics and then propose relevant recommendations to improve efficiency

Collegiate Gladiator in the Gauntlet of Education :: Personal Narrative Papers

Collegiate Gladiator in the Gauntlet of Education I felt the presence of early morning dew against my skin as I marched through a grass field on a brisk October day. My classmates exuded enthusiasm; this excursion was reason to escape the confines of our bleak high school. There was abundant conversation with the occasional youthful act of animation, like sprinting downfield or throwing a rock. The world seems just a bit different when a student is taken from a classroom setting into a non-academic one. Opportunity and freedom appear to be ever so present. Perhaps, that was reason for our class being outside during my regularly scheduled English period. In all honesty I was quite skeptical. I have never been a morning person and can be a silent cynic when it comes to group events. I staggered behind the group, hands in pocket, submerged in totally unrelated thought. My teacher led the way stammering uphill and clenching his worn black book, almost appearing as if he was Moses carrying the Ten Commandments up Mount Sinai. After trekking through the endless barren of soccer and lacrosse fields, we came upon the overgrown pathway that led into the woods. Many of us were familiar to this area, coaches often made their teams run through these wild trails. Others seemed puzzled. Stepping into the wild that day we crossed the threshold on many levels: not just escaping into nature but escaping from ordinary thinking. For me, the change in location would also mark a change in philosophy. Some distance I have covered. The start of my journey seems like a lifetime ago. Blinded by innocence and burdened with little responsibility, being eight years old had its perks. Sure I had to attend school, but what exactly was school at that echelon? A day spent singing songs, playing dodge ball, paper macheing cardboard figurines, with the occasional napping and recess break. Almost like summer camp. To my surprise, second grade was far from what I imagined. My year revolved daily lessons on reading and writing... in hopes of achieving basic literacy. With the occasional dip into the kiddy pool of arithmetic, second grade was a year of hard work. I was lucky to have an incredible teacher like Mrs. Perdiz. She pushed me so hard, so hard that at times I disliked her. Music, math, and art took a definite backseat to reading.

Reasons for United States Possible Attack on Iran Essay

The topic on the possibility of United States launching a military attack against Iran has dominated much news for several years since the Bush administration and during which some quarters speculated that such an attack would be ordered before the administration left office. As early as 2005, a number of articles had started revealing the imminent plans by Pentagon to order military operations against Iran. While people and the media may speculate and give their opinions about many aspects of the imminent war, the most important issue to understand is the reasons which may spark the attack. It is therefore the objective of this paper to discuss the reasons why US would engage in a military land war with Iran. 2. 0 The Euro-Based Oil Bourse This is one of the major reasons which revolve around the plan by Tehran government in 2005 and 2006 to start competing with the New York Mercantile Exchange (NYMEX), the largest physical commodity futures exchange in the world based in New York and the London based International Petroleum Exchange (IPE) by using the euro-dominated oil trading mechanism (Clark, 2004). The logic behind this is that by using this mechanism in international oil trades, the euro is going to take dominance and establish a firm ground which will serve to overshadow the strength of the U. S dollar in the global oil market. The U. S government therefore considers this a real threat by Tehran government which warrants intervention to protect the dollar from being toppled off from its long term monopoly in the critical international oil market. It is worth noting that lack of an oil pricing standard that is euro-dominated also referred to oil â€Å"marker† in the oil trading industry is one of the technical challenges facing the euro-based trading system in oil transactions. The oil markers currently in operation today are the U. S dollar dominated which include Norway Brent crude, West Texas Intermediate crude, and the UAE Dubai crude. In the spring of 2003, Iran laid down a requirement that all the transactions for its Asian and European oil exports be conducted using the euro currency though the pricing of oil was still predominantly controlled by the dollar. Following an official announcement in 2004 that Iran had intentions to develop an Iranian oil Bourse, it raised the concerns that a stiff competition would ensue between the Iranian oil bourse and the U. S owned NYME and the IPE (Clark, 2004). The macroeconomic implications of such a development would cause a shift in the international commerce in both Middle East and the European Union which is the largest importer of oil from OPEC producers. Consequently, the financial hegemony enjoyed by the IPE and NYMEX would be greatly challenged and thus the U. S is likely to avoid this through military action. 3. 0 The Ambitious Nuclear Program of Iran The Tehran’s nuclear ambition is another possible reason as to why the U. S may launch a land military attack on Iran. This has been seen from the latest series of sanctions on Iran by the Obama administration which mainly targets the Islamic Revolutionary Guards Corps which is the most powerful social, political and economic institution in Iran. The organization also has a large number of companies and banks and therefore makes it an appropriate target for these sanctions (LANDLER & COOPER, 2010). However, the critical thing to focus on with regard to this issue is whether these sanctions have the capacity to compel Iran to halt its nuclear program. If the history of political and economic sanctions against countries is anything to go by, then Iran may not change its course despite the sanctions and this may lead to war. The reason for the sanctions is to â€Å"contain† Tehran which depicts a link which leads from diplomatic pressure to military action (Nadal, 2010). Tehran views this threat as real considering that its two neighbors to the west and to the east have a large number of U. S troops. 4. 0 Conclusion A possible military action on Iran by the US cannot be overlooked since the reasons surrounding this possibility would also have major effects on the economy and the security of the US. Considering the economic problems facing the US, the attempts by Iran to establish the euro-based oil bourse may seem as an attempt to suppress the dollar in the international oil market. The nuclear program also would threaten the security not only of the US but also of the world if it is not either regulated or completely halted. To aver the nuclear weapons development, Washington ought to try and alter the perceptions of threat harbored by Iran against America. References Clark, W. (2004). The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker. Retrieved August 20, 2010, from http://www. globalresearch. ca/articles/CLA410A. html LANDLER, M. , & COOPER, H. (2010). U. S. Eyes New Sanctions Over Iran Nuclear Program. Retrieved August 20, 2010, from http://www. nytimes. com/2010/02/10/world/middleeast/10sanctions. html? _r=1 Nadal, A. (2010). Sanctions against Iran and the Next War. Retrieved August 20, 2010, from http://www. campaigniran. org/casmii/index. php? q=node/10518

When You Shouldnt Go Global

Running head: VETTING GLOBALIZATION STRATEGIES When You Shouldn’t Go Global; Vetting Globalization Strategies Table of Contents Executive Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 Case Overview †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4 SWOT†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Situation Analysis†¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 STAB Principles †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 Christian Values †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦. 13 Recommendations †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 Executive Summary It has been argued that companies who have experienced some level of failure when trying their hand at cross-border ventures have simply attempted the leap under misguided information. It is argued that such failures are in direct result of inadequately vetting their globalization strategies. We offer an in depth discussion surrounding the globalization issue and the necessary strategies, followed by recommendations we believe could help reduce the prevalence of globalization failures. We open our discussion with a 2008 case study urging the company considering globalization to ask themselves a series of revealing questions. Providing real life examples, we go on to highlight several underlying pressures and challenges often associated with the process of globalization. An analysis of the strengths, weaknesses, opportunities and threats, often associated with a firm who is not prepared for globalization, is performed. The often intimidating global climate and several mixed assumptions surrounding globalization are discussed across a multitude of service industries. We continue by presenting three of Sun Tzu’s principles, as cited in The Art of Business, as we argue ways in which they are instrumental to any successful globalization venture, providing examples of firms who have historically and successfully applied the three principles. Several Christian values and how they are intertwined within the structural framework of a successfully globalized firm mentioned, noting the importance of a functional mission statement and several key characteristics to be explored before attempting the cross-border venture; ensuring global readiness. Finally, we offer several recommendations that we conclude are vital in addressing globalization preparedness, suggesting that with additional research, insight, and after fully vetting the related risks and rewards, the frequency of globalization failures would be significantly reduced. Case Overview Marcus Alexander and Harry Korine (2008), argue that many companies do not take the time to ensure that their globalization strategies were not â€Å"deeply misguided. † Believing that many of these failures could be avoided, Alexander and Korine (2008) recommend the company pondering globalization ask themselves three questions: 1. Are there potential benefits for our company? 2. Do we have the necessary management skills? and 3. Will the costs outweigh the benefits? Among the arguments made by Alexander and Korine is that which encompasses the pressures surrounding the globalization process. Alexander and Korine (2008), argue that companies going global in relation to various marketplace pressures are making serious mistakes, subsequently forced to undo their international investments, often involving the firing of senior management teams. Alexander and Korine (2002), offer up examples of failed strategies such as Dutch financial-services firm ABN Amro, Daimler-Chrysler, and AES – a U. S. based energy firm that despite operating in 29 countries on five continents, struggle to bring added value. The authors relate the struggles of deregulated industries to a â€Å"glocal† problem. That is to say that many â€Å"customer expectations, operating environments, and management practices of a globally standard service can vary greatly depending on location,† in example, citing the standardization of electricity flowing over power grids (Alexander & Korine, 2008, p. 107-109). Every industry has its own challenges with globalization. Issues within the service industry, such as Starbucks, for example, have been that profit margins are equivalent to about half of that which can be expected domestically. In the IT industry the protection of intellectual property rights has caused many companies to simply leave countries like India, while the failed integration of Daimler-Benz and Chrysler is a perfect example of a failed globalization strategy in the manufacturing industry (Alexander & Korine, 2008). In discussing some of the strategies that did work, such as GE, and Renault’s alliance with Nissan, Alexander and Korine caution against focusing on these success stories. Stating that that while many companies are planning rapid expansion, they are underestimating the management challenges. Their final point is that the landscape of players is very different than that of the global landscape of 30 years ago. Today’s successful global behemoths, according to Alexander and Korine (2008), are more diversified â€Å"both in type and international footprint. † Meaning, such companies possess a greater diversity in the types of subsidiaries they own and operating in more countries than ever before. SWOT Analysis – When you Shouldn’t Go Global Strengths Reduced financial, political, currency, and exchange risk- Foreign investment involves all of these risks. By refraining from foreign investment we avoid these risks. Simplicity of operations- Setting up and maintaining foreign investments complicate operations. Refraining from going global keeps operations more simple. Protection of intellectual property- It is very difficult to protect intellectual property in foreign countries. By keeping all activities domestic, one is adding a layer of protection to intellectual property rights. Weaknesses Loss of economies-of-scale and economies-of-scope- This according to Alexander and Korine is what is not being fully realized by going global, and therefore may not be that significant of an issue in many industries. Loss of first-mover advantages- Choosing not to go global may mean making the irrevocable choice to give up the first-mover advantage. This is usually a very small window and a one-time opportunity. Foregoing additional revenue sources- For a company that has no additional potential revenue sources domestically, going global may be the only opportunity to gather additional revenue. Foregoing market growth- For companies wishing to expand market reach, the choice to forego going global will limit their market penetration. Opportunities No financial investment- Refraining from foreign financial investment frees-up those funds for investment in domestic activities. No use of other resources- Refraining from going global frees-up all resources (human, etc. ) for use in domestic activities. Threats Loss of market share to competition- Should one’s competition be successful in going global, they may be able to offer similar products at much lower prices thus forcing you out of the market. The competition may also offer superior products at higher prices, and capture the market, via the use of superior technology. Loss of talent to competition- In many fields, such as high tech and engineering, the worldwide competition for talent is fierce. Failure to go global often means failure to secure talent. Loss of learning opportunities- Since globalization can take the form of joint ventures. There is also the threat of the loss of learning from a joint venture partner that should be considered. Situation Analysis Since the seventh century business have possessed the desire to operate internationally however, those considered truly global, did not start appearing until the past century. With growing stories of globalization successes, follow just as many testaments to failures. Despite the growing number of failed attempts the overwhelming pressure to conduct the ultimate border-less business has become increasingly enticing. Most large companies founded 20 years ago feel battered by numerous external forces pushing them towards globalization. Driving forces such as the removal of political and regulatory barriers to global trading and investment and the ability to conduct business 24 hours a day from anywhere in the world, draw these business behemoths one step closer to customers in emerging economies (Alexander &Korine, p. 106). Deanna Julius (1997), lists in her article titled Globalization and Stakeholder Conflicts; a corporate perspective), three primary, macro-level forces, driving the need for change as; how companies are organized, how goods and services are produced and how they are bought by and delivered to customers. Alexander & Korine (2008), mention that while many of the companies that have rushed to globalization have benefited, or at the very least have not suffered irreparable damage, some are witnessing major fallout from the move. The authors suggest that while companies often fail from misguided global strategies and an unanticipated level of execution, they could have avoided such failure by seriously addressing if potential benefits even exist in going global, if their management possess the necessary skills and the most logical one, will the costs of going global outweigh the benefits? Alexander & Korine (2008), argue that most companies fail to ask themselves these questions due to previously held false assumptions regarding the virtues of globalization and seduction from the stock market. As previously mentioned, deregulated industries such as those who provide water, power, and mail service are among those experiencing global failure. Alexander & Korine (2008), suggest that deregulated industries are operating under the misguided assumptions as well. The greatest assumption being that, going global will save them money, given they will be sharing resources across their international operations. When in reality, the costs to enter the foreign markets end up outweighing the assumed benefits (Alexander & Korine, 2008, p. 107). Managerial fads are suggested to undermine rational behavior from within a company, thus resulting in sloppy thinking that distracts management from more imperative tasks associated with global success. Properly servicing global customers from a national perspective contributes too many failures given, much attention must be afforded to a mix or global and local factors simultaneously. Global manufacturing companies are said to fail due in part to the complexities related to the integration tactics necessary grow and compete better, resulting in costly delays and thus failures (Alexander & Korine, 2008, p. 110). STAB Principles Win All without Fighting – Capturing Your Market without Destroying It The goal of business is to survive and prosper over a long period of time. Sun Tzu, author of The Art of War, described the strategy in achieving this long term prosperity as an offensive one in which a company must take all under Heaven intact, â€Å"Thus your troops are not worn out and your gains will be complete (McNeilly, 1996, p. 11). McNeilly (1996), utilizing Sun Tzu’s principles in his book The Art of Business, adds that, by taking all under heaven intact you will capture your marketplace thus ensuring your company’s survival and prosperity. However, your desired markets must be defined as such and nothing less than commitment in achieving market dominance must be displayed (McNeilly, 1996, p. 1). Application of Sun Tzu’s principle, win all without fighting – capturing your market without destroying it, as cited in McNeilly (1996), has been useful to many of today’s leading companies, including global cement producer, CEMEX. Cemex’s CEO Lorenzo Zambrano has applied Sun Tzu’s technique when expanding his cement company in Mexico and abroad. By the year 2000, CEMEX had become the world’s third largest cement company. In Cemex’s quest for market dominance they switched to a strategy of growth through acquisitions. In the late 1980’s large firms were considering expanding their operations into Cemex’s Mexican territory. Realizing the imminent threat CEMEX decided to unify its Mexican operations by acquiring two of Mexico’s large cement producers, affording CEMEX access to Mexico’s central market and bolstering its exporting capabilities, making CEMEX Mexico’s largest cement producer and a threat not to be competed against. While CEMEX won all without fighting, they gained market dominance in Mexico, later fueling their geographic expansion (Ghemawat, 200, p. 155). Deception and Foreknowledge – Maximizing the Power of Market Information Foreknowledge, as described in Sun Tzu’s third strategic principle, is not projecting what will happen in the future, based on past occurrences or merely conducting a trend analysis. Foreknowledge and maximizing the power of market information is to; gain firsthand knowledge of your competitions strengths and weaknesses, know their capabilities, culture and mindset, and obtain a deeper understanding of who their decision makers are and what their future goals and plans are (McNeilly, 1996, p. 0). As Sun Tzu stated in The Art of War, as cited in McNeilly (1996), regarding foreknowledge â€Å"What is called foreknowledge cannot be elicited from spirits, nor from Gods, nor by analogy with past events, nor from calculations. It must be obtained from men who know the enemy situation. † In order for a company to succeed on a global scale not only do the ins and outs of their competition need to be understood and plotted against, they must also know themselves; their own weaknesses, strengths, people and plans as well as the market in which they will be entering. A corporation lacking this level of foreknowledge should reconsider entering global markets until they better know themselves and their competition. Before Wal-Mart swept our nation, Sam Walton gathered vast amounts of information on his competitors, large and small, before he ever brought competition to their territory. In fact, before Wal-Mart took on then behemoth value retailer Kmart, it was the smaller, local mom and pop retailers that were seized up. Walton learned about the smaller retailers value chains and distribution methods, through foreknowledge, he attacked their weakest points, where they could not afford to compete, in costs and deceptfully defeated them where they did not expect it; in their own small, rural towns. Defeating the smaller retailers gained Wal-Mart the necessary market share to then surround urban Kmart. Wal-Mart, knowing that Kmart’s operating costs was on average 5% higher than theirs attacked Kmart at its cost structure, and won. Kmart was just not able to get under Wal-Mart’s five point advantage in operating costs (McNeilly, 1996 p. 25). In 2009, after waiting for a new government with a more ‘hopeful’ political environment and a well paired partnership with local market-savvy grocery retailer, Bharti, Wal-Mart utilizes foreknowledge and deception to enter India’s market. Historically however, Wal-Mart has been unsuccessful in several global markets such as Japan due to their inability to adapt to local markets and tastes (Consumer Goods, 2009). As McNeilly (1996), notes in summary, you must learn everything you can about your competition, not merely the facts, but you must also learn about its culture, market, mindset and capabilities. Possibly additional foreknowledge in these areas could be of great use to Wal-Mart. Character Based Leadership – Providing Effective Leadership in Turbulent Times Character based leadership is not only desirable but it is an attribute than often separates the globally successful firms from the rest. When a company first tries its business hand and people skills at cross-border trading, most of the times are turbulent ones and without effective and transparent leadership, going global can quickly escalate from intimidating to downright terrifying. When we think of character based leaders, often people like Chrysler’s Lee Iacocca, Steve Jobs (Apple), The Snyder family (In-N-Out burger), Dan Cathy (Chick-Fil-A), Eric Schmidt (Google) and Jim Skinner of McDonalds come to mind, but McNeilly (1996) reminds us that not only are leaders of this caliber unique, they can also be hard to find. It is of no coincidence than that we can more readily recall companies operating under less than character based leadership, faster than those with it. Companies like Nike, BP, Exxon (Valdez Oil spill) and even Carl’s Jr’s current CEO Andy Puzder, come to mind. Sun Tzu stated in The Art of War, as cited within McNeilly (1996), â€Å"The general who in advancing does not seek personal fame, and in withdrawing is not concerned with avoiding punishment, but whose only purpose is to protect the people and promote the best interests of his sovereign, is the precious jewel of the state†¦few such to be had. McNeilly (1996) suggests that leaders of this caliber are desirable given they put the needs of others before theirs, they have strong and well developed characters. Becoming such a leader is not easy and will require much sacrifice to: â€Å"Build your character, not just your image; lead with actions, not just words; Share employee’s trials, not just triumph s, motivate emotionally, not just materially, assign clearly defined missions to all, avoiding mission overlap and confusion and the make your strategy drive your organization; not the reverse† (McNeilly, 1996, p. 119). Jim Skinner, CEO for McDonalds and winner of the 2009 CEO of the Year award is greatly admired and willingly followed by his employees around the world and thus a great example of a character based leader attributing to McDonald’s global successes. Skinner, who began his career with McDonald's in 1971 as a grill cook was named CEO in 2004, at a tumultuous time for the company. Skinner acted quickly to turn the company around and in result between 2004 and 2008 McDonald’s revenues climbed 41. 1 percent in four years, and net income jumped by 81 . 3 percent (Top Executive, 2009). The top nominees for CEO of the year are judged by such criteria as; leadership, integrity, ability to outperform and for their commitment to employees. It was no surprise to those who knew and worked with Jim Skinner that he had excelled in every category. After receiving the award, Skinner acknowledged the support his leadership team, along with the entire McDonald's system, stating â€Å"Together, our franchisees, employees and suppliers make up what we call our three-legged stool, we succeed only when all three legs of that stool are strong, aligned and performing at the highest levels† (Top executive, 2009). In closing, Skinner noted that while the challenges of leadership have grown more complex in the multifaceted business climate, holding fast to fundamental principals will serve today's global business leader well (Top Executive, 2009). The character based leader of today’s successful global firm provides effective leadership in turbulent times, Sun Tzu refers to this as ‘moral influence’ stating in The Art of War, as cited within McNeilly (1996), â€Å"By moral influence I mean that which causes people to be in harmony with their leaders, so that they will accompany them in life and unto death without fear of mortal peril. Skinner possesses moral influence among his employees, an important principle that will undoubtedly advance McDonalds in global markets around the world. Christian Values At the minimum, companies poised for global success, will adopt a mission statement. Ideally, these companies will have a statement of values. One organization that is not on ly global, but transnational – World Vision International has a statement of values that serves as moral compass in decision making and strategic planning. It states that WVI’s values are to â€Å"Bring a Christian, community-based, child-focused HIV and AIDS response, reflecting God’s unconditional love for all people and the affirmation of each individual’s dignity and worth† (World Vision International, 2009, p. 2). It is these types of clear statements of vision that removes the guess work from the Christian Business Praxis model. Additionally, companies need to look at the characteristics of their organization and the values their leadership possesses to determine whether or not the decision to global is in the best interest of the organization. Some examples are: Benevolence- For many organizations benevolence is the primary reason for going global. This was certainly the case of bicycle manufactures and APU alumni ACIRFA, who after going on mission to Africa saw a need for transportation and found a way to meet that need. Stewardship- Stakeholder theory, which seems to dominate most modern business decision making, indicates that it is unethical to go global without first considering the impact on all of your stakeholders. Clearly, one’s shareholders are his or her primary stakeholders. However, one must be mindful of the fact the fact that the organization is also the steward of its employees. And, to that end the organization has a duty to plan responsibly and minimize risk to those employees. As such, it is important for organizations to ensure that they are balancing potential profitability with the potential of not serving some of those under their care. Collaboration- This is a particularly useful skill if an organization is considering joint ventures. If, however, the organization has found that that the leadership of the organization or the organization as a whole is particularly weak in this area this is an indicator that a joint venture is not ideal. Integrity- The challenge associated with integrity (assuming that your organization possesses a great deal of integrity) is that one doesn’t know the off-shore partners and vendors one’s organization will be dealing with. New relationships will need to be established, and with that trust will need to be cultivated. Management skill- For every ounce of management skill it takes to manage domestically it takes a pound to manage off-shore. This is because there is an entirely new set of challenges and risks. There are language barriers in many cases. There are currency fluctuations, political risks, supply chain issues, and a whole host of challenges that one may not have realized existed even with extensive due diligence. Passion- The type of passion we are addressing here is the type associated with buy-in. If all members of the executive management team have not bought-in to the idea of going global it is going to be very difficult to have a great deal of success. Leadership must be passionate about going global. They must be excited, and they must be convinced that this is the future of the organization for global efforts to be successful. Preparation- Preparation is the key to success in going global. It may be fine to start out by simply exporting a few items. However, as demand increases, organizations will find that the need for strategic planning and preparation will also increase. Should a company wish to enter into either a joint venture, licensing agreement or build facilities off-shore, extensive due diligence involving outside consultants will be necessary. Zest- As we have suggested, going global is not for the faint-at-heart. Leaders have to be willing to take risks, and moreover leadership should invigorate others. Going global is not an easy task, great planning and preparation are integral. There will be many challenges and many hurdles and in many cases there will be more reasons to quit than stay the course. Therefore, zest is a prerequisite for going global. Recommendations Before making the decision to go global, heed Alexander and Korine’s advice, and ask three questions of your organization: 1. Are there potential benefits for our company? 2. Do we have the necessary management skills? and 3. Will the costs outweigh the benefits? The answers to those three questions will give the organization a starting point from which to determine if going global is in the best interest of the organization as a whole. Next, ask the operational questions- Is going global necessary for the growth and/or survival of our organization? Is globalization worth the various risks involved? Can effectively and protect our intellectual property in a cost efficient manner? Will the complications surrounding operations be overwhelming? What do we stand to lose if we don’t go global and if we don’t who within our competition will? What possible ramifications exist at the expense of not going global? Are we losing out on a learning opportunity by not going global? Is there unsecured talent out there that we may miss out on by not going global? Then ask the company, how much the above is worth in terms of opportunity cost? If we don’t utilize our time and resources in going global, how then will we allocate said resources to growth? Then ask your company the values questions- Is going global a responsible and ethical management decision? Can we trust that we will find people of integrity in the global economy to do business with and if so, do we possess the necessary passion and zest to be successful at such as risky cross-border venture? In addition, have we well prepared, and will we continue to be, throughout every step of the process? After asking the above questions we recommend conducting a detailed SWAT analysis where all possible risks and rewards involved with going global are fully vetted, then establish that all Christian perspectives are clear and present and finally, if the decision to go global is made, go forward while applying Sun Tzu’s Art of Business principles. In conclusion, Alexander and Korine (2008), suggest that we should not expect the influx of globalization failures to stop or improve any time soon. Making the valid point that, companies in a variety of industries will continue on in their reckless pursuit of global strategies, activists will continue to cause change and disruption and less than character based leaders will stand behind flawed globalization strategies, all the while, customers will always be demanding select attention. While it is undeniable that globalization is a seductively daunting opportunity with promises of increased power and unlimited benefits looming about the mere thought and that while even the best and brightest leaders, heading up the most well prepared companies may eventually succumb to its pressures, make the cross-border transition and possibly fail at it, keep in mind- sometimes to fail is necessary to succeed. References Alexander, M ; Korine, H. (2008). When You Shouldn’t Go Global. In Bartlett, C. A. ; Beamish, P. W. Transnational Management- Text, cases, and readings in cross-border management. 6thed. p. 105-112). New York: McGraw-Hill Irwin. Consumer goods: Wal-Mart cashes in. (2009). Business India Intelligence, 16(12), 3-4. Retrieved from http://search. proquest. com Fraser, R. (2006). Marketplace Christianity: Discovering the kingdom purposes of the marketplace. 2nd ed. Kansas City: MO: New Grid Publishing. Ghemawat, P. (2000). The Globalization of CEMEX. In Bartle tt, C. A. ; Beamish, P. W. Transnational Management-Texts, cases and readings in cross-border management, 6thed. (p. 146-166). New York: McGraw-Hill Irwin. Julius, D. (1997). Globalization and Stakeholder Conflicts: A corporate perspective. International Affairs (Royal Institute of International Affairs 1944-). Globalization and International Relations (Vol. 73, No. 3, p. 453-468). McNeilly, M. (1996). Sun Tzu and the art of business: Six strategic principles for managers. New York: Oxford University Press. World Vision International. (2009). Global hope initiative annual report 2009. Retrieved from http://wvi. org/wvi/wviweb. nsf/0CF6565756AEA942882575590061CEAC/$file/ Hope_Annual_Report_Exec_Summary_2009. pdf 2009 chief executive of the year. (2009). Chief Executive, (242), 68-70. Retrieved from http://search. proquest. com/docview/212098908? accountid=8459