Rpp Rental Power Plants

Rental plants are simple cycle plants and consume marginally more fuel than combined cycle power plants which are normally set up as Pips. Despite the fact that rental contacts are between 3-5 years and not 20 years (as with Pips), rental tariffs are low. When lower tariffs to rental plants are taken into account and a further allowance made for higher fuel costs, the difference is almost equal or marginally higher in case of rental plants. Therefore, it is entirely incorrect to suggest that rental power costs are substantially higher than those of Pips.Other advantages of rental power Rental sponsors have taken a Jump of faith and are investing hundreds of millions of dollars in fast-track development of these rental plants. Sponsors and lenders are uncomfortable that they are being subjected to misplaced, ill-informed media trial sponsored by bad interests who do not want to see power shortages removed on priority and are vocal in their criticism of individuals and companies settin g up rental plants, which have been awarded transparently.Government of Pakistan has no liability to pay for setting up of rental plants, rental plants are paid for electricity delivered to the grid 60 days in arrears, Government of Pakistan takes no responsibility for payment of loans taken by rental sponsors, and rental plants are successfully set up in 6-8 months whereas Pips take 3-4 years. If anyone has better solutions to resolve the power crisis on an urgent basis, they should come forward with concrete proposals for public and private consideration.CONS Impact on fuel demand The rental power plants would increase the Pakistani power sectors furnace oil needs by 29 percent, driving up its import bill and adding to pressure on the rupee and currency reserves. Pakistan requires 35,000 tons a day to feed its thermal power plants and the installation of the Reps will increase demand to 45,000 tons, officials say. The country imports about 80 percent of its oil. It spent $9. 5 bil lion on the import of 10. 6 million tons of petroleum products and 7. 8 million tons of crude oil in the 2008/09 Lully-June) financial year.Impact on net exports Since we import most of our oil needs, and after the implementation of Reps, our demand for oil will increase, this means we will have to import more oil into our country. On a larger scale this act will put a very negative impact on our net exports as more imports will result in greater import-export deficit. Thus, more discomposes More fuel consumption Analysts say that RSI. 80 million a month for generating 51 MM is spent for the Turkish ship producing nuclear power in the port of Karachi.That's mainly because of the later findings that rental power is eating up more fuel than expected, even more than the Independent power producers. This is a bad sign for future rental power projects. Impact on gross domestic product Senior economists, portrayed in May this year, a highly depressing picture of the decline in the product ivity of Pakistanis industrial sector caused mainly by power loading's, asserting that overall loss of industrial production had been as high as RSI 210 billion during 2008 and that accounted for about 2 per cent of the country's Gross Domestic Product (GAP).Other disadvantages Many opponents say the mostly second-hand equipment will be less efficient and that the tariff will rise. They argue that the government would be better off spending money on upgrading and using idle existing capacity. Some opponents also say the option is being supported by corrupt politicians hoping for kickbacks. WHO SAID WHAT ABOUT MY PAPER? The Rental Power Plants would significantly enhance the cost of production which will cake survival of the industry more difficult and create more problems for the fragile economy.Business community said the Government should fully protect the national interests before going for the Reps, as the price of electricity produced by them would reportedly go further up by 3 1-45 percent. Said Mongol, President Islamabad Chamber of Commerce and Industry while chairing a meeting here, said, There is no enough gas available in the country to meet the Reps needs. While no arrangements has been made for transporting of the alternative fuel or furnace oil to the Reps, which could plunge this whole project into ruble and waste precious resources, he added.Economists of eminence like Shad Caved Burk (who later wrote articles in newspapers), Sartor Aziza, DRP Kamala Hussein, Aisha Shahs Pasha, DRP Perez Has and Shad Kara were of a unanimous view, at a seminar that a good wheat crop prevented some damage in the agricultural sector, otherwise the loss to the national economy could have risen as high as RSI 400 billion as rice, sugarcane and cotton production fell although varying in the degree of yield. The textile sector suffered the major damage losing RSI 25 billion that adversely affected Pakistanis exports that clines too value of $1 billion.This scenario ha d an overall adverse impact on the balance of trade, which was badly disturbed in view of imports that mounted beyond precedent, weakening the overall performance of the national economy. After reading all these pros and cons, I have come up to a conclusion that the situation emerging envisions that the people cannot wait for multi-purpose dams for irrigation water and power generation because such projects usually take eight to 10 years to complete. Similarly, coal and furnace oil-fired independent power plants unsure two to three years before they are able to produce electricity.Seen in the background of a colossal industrial and agricultural loss, particularly during the year 2008, the only solution we have right now is to â€Å"quick fix† the gap between demand and supply of electricity and that is by Rental power plants. Even though it might be expensive but I don't see any other way to fulfill rising demand needs. Although the government should work with full priority t o build Pips after filling the gap. And keeping in mind that the demand will keep on exceeding in the coming years.

Advertising Ethics: a Contextual Response Based on Classical Ethical Theory

Advertising Ethics: A Contextual Response Based on Classical Ethical Theory Cornelius B. Pratt E. LincolnJames ABSTRACT. F. P. Bishop argues that the ethical standard for advertising practitioners nmst be utilitarian. Indeed, the utilitarian theory of ethics in decision-making has traditionally been the preference of U. S. advertisingpractitioners. This article, therefore, argues that the U. S. advertising industry's de-emphasisof ;ontological ethics is a reason for its continuing struggle with unfavorable public perceptions of its ethics – and credibility.The perceptions of four scenarios on advertisingethics and the analyses of the openended responses of 174 members of the American Advertising Federation to those scenarios suggest that advertising practitioners need a stricter adherence to deontological ethics than is indicated in this study. Advertising, a traditionally high-profile management function since World War II, perpetuates a paradox. On the one hand, it is common ly touted by business and the academy as a major economic, social and competitive force in post-world war economies. On the other hand, it is, invariably, a bull's-eye for public wrath.Cowton (1992), Crisp (1987), and Litttechild (1982), for example, present evidence on consumer suspicion and antipathy toward and investor concerns about advertising Cornelius B. Pratt is Associate Professor in the Department of Advertising, at Michigan State University. His research has been published in suchjournals as the Journal of Media Planning, Journal of Business Ethics, Public Relations Review, Public RelationsJournal, Public Relations Quarterly, and Journalism Quarterly. E. LincolnJames is Associate Professorand Assistant Chairperson in tke Department of Advertising at Michigan State University.His work has appeared in several scholarlyjournals, including the International Journal of Advertising,Journal of Advertising, Journal of Direct Marketing, Journal of Media Planning, and Weberforschun g und Praxis. ethics. Such antipathy and concerns have a considerable history, having begun earlier in this century (Rogers, 1990). Since a national meeting of the Advertising Federation of America in March 1942, during which it created a 39-point code of ethics for advertising during World War II (The New York Times, 1942), U. S. ublics and regulatory agencies and businesses worldwide have had a consuming interest in ethics. In his widely acclaimed book,The Ethics of Advertising, Bishop (t949) argues that the ethicai standards of advertising should â€Å"meet the practical requirements of society at a given stage of development† (p. 88). Thus he suggests utilitarian, relativistic, not rigid, standards of ethics for the ad industry. In Nevett's (1985) rebuttal to Bishop's (1949) argument, he concluded: â€Å"The ethical case for advertising stands in need of rigorous re-examination† (p. 04). The industry is not oblivious to such a need; existing programs are being reva mped and others are being developed to respond to ethical issues. Indeed, selfregulation for socially responsible conduct has become an attractive option of industry associations as advertising practitioners report that their activities conform to the principles of business conduct, adopted March 2, 1984, by the Board of Directors of the American Advertising Federation (,~a~F)(Chonko et al. , 1987).This article re-examines advertising ethics and argues that the perfunctory adherence of the advertising industry to deontotogical ethics results in a public perception of the industry as more susceptible, on the average, to ethical dilemmas than are most other management functions. So pervasive is this perception that Bergerson (1991-1992), chairman of the Self-Regulation Committee of the AAF, criticized industry efforts that were largely directed at treating the symptoms of the problem rather than Journal of Business Ethics 13: 455–468, 1994.  © 1994 KluwerAcademic Publishers.P rinted in the Netherlands. 456 C. B. Pratt and E. L. James Greyser and Reece's (1971) update of the 1962 HBR study (Greyser, 1962) indicated that while business leaders had a continuing strong respect for the economic role of advertising, advertising standards had slipped in some areas from standards reported in 1962; and, advertising content, particularly its perceived truthfulness, drew major criticisms. More recent research underscores a rising tide of questionable practices and ethical problems among advertising practitioners (Carson et al. 1985; Hunt and Chonko, 1987; Nevett, 1985; Ossip, 1985; Rotzoll and Christians, 1980; Haefner, 1991).Consequently, Bergerson (1991–1992), for example, observes cynicism and indifference among the public toward advertising: â€Å"If the legislators, regulators and the public perceived advertisers to be more committed to legal and high ethical standards, their level of trust wilt rise and their level of unwelcome attention will fallâ₠¬  (p. 22). the problem itself. â€Å"Everyone in the industry should be interested in being a part of the solution,† Bergerson (1991-1992) wrote. The solution is to restore and maintain advertising's credibility† (p. 22). Purposes of study The purposes of this study are twofold. First, it examines AAF members' perceptions of four scenarios on advertising ethics, and analyzes their reasons for perceiving such scenarios as they did. Because members of the AAF — the largest association of advertising practitioners in the United States – operate in the trenches of the U. S. advertising industry, their perceptions could be typical of those in the industry.Based on their comments, the present study argues that deontological ethics be applied more readily to decision-making than is currently the case. Second, this study links practitioners' perceptions to ethical theories. Such a linkage is important because â€Å"(ethical) theories are like windows onto the w orld of moral reasoning. They are meant to provide vantage points from which important ethical decisions can be considered† (Lambeth, 1986, p. 25). The results of this study are, therefore, presented within the specific framework of classical theory: deontology.Theoretical framework: The classical ethical theory ofdeontology Advertising practitioners continually explore ethical systems that will guide their decision-making processes. Lambeth (1986) observes that such a â€Å"system of ethics cannot ignore the classical approaches of deontology and teleology, or the variants of them† (p. 28), and identifies the characteristics of such a system: A system of ethics must be flexible,but not so flexibleas to be a mere rationalization for the personal preferences of those who invoke it.In short, a systemmust have bite and give direction. Its precepts should offer continuity and stability, though not necessarilyinvariant outcomes. Rationale for study The growing literature on the morality of business practices indicates that, aside from greater semitivities to the environment and greater emphasis on a number of socially responsible actions, businesses, for the most part, still face ethical issues that were prevalent in the 1960s. The advertising profession, as business, is no less immune to the unsavory public perceptions of business ethics in general.Almost 30 years ago, while a Harvard Business Review (HBR ) survey of business leaders indicated great respect for and an improvement in the standards of advertising during 10 previous years, there was a greater tendency on the part of the leaders to think that a code of ethical pracnces was more desirable for advertising than it was for their own industries (Greyser, 1962). (p. 28) Kantian ethics, a time-honored classical ethical theory, provides the framework for discussing the implications of self-reported ethics for the advertising industry.Deontology is a duty-based, nonconsequentialist theory of ethic s that asserts that certain, human actions are inherently† right or wrong. (Eighteenth-century German philosopher Immanuel Kant (1724–1804) provided much of the moral reasoning for pure deontology. ) The emphasis is on the doer's actions. For example, it is always wrong to steal, lie or break a promise; it is one's moral duty to Advertising and ClassicalEtflical Theory tell the truth and to keep one's promises – regardless of the consequences.Universalizing an action is one criterion offered by Kant for determining the ethics of a decision or action. Does the decision, action, or advertising message treat people as ends or as means toward an end? Kantian ethics requires that the doer respect the rights, status and dignity of the people with whom she or he interacts. Deontology has a unique appeal to and major implications for the ethics of advertising practitioners. Consequently, the continuing search for clear-cut do's and don'ts is a major focus of a number of advertising departments, agencies, and associations.One worldwide approach to such a search is the adoption of an ethics code whose imperatives, with a deontological bent, require, for example, that â€Å"we will not knowingly create advertisement that contains false or misleading statement or exaggerations, visual or verbal† (American Association, 1990). Such self-regulation by codes of ethics is, therefore, one far-reaching measure the advertising industry has taken to address the everyday ethical questions that it confronts. Such a strategy contradicts Ekehind and Saurman's (1988) argument that such codes may not improve the professionalism of the practice.The rationale for such codes, argue advertising practitioners, is that the industry can distinguish right fi'om wrong. Beyond that, such self-regulation has the advantage of addressing headon some of the unfavorable public perceptions of advertising. The eight-item Advertising Principles of American Business, adopted Mar ch 2, 1984, by the American Advertising Federation Board of Directors, is replete with non-conditional, unequivocal â€Å"shalls† and â€Å"shall nots,† again, indicative of deontological requirements or proscriptions.Similarly, the Standards of Practice of the American Association of Advertising Agencies uses â€Å"musts† and â€Å"will nots† to disapprove unethical conduct among practitioners. These principles and standards satisfy both the principle of unity† and Kant's categorical imperative and reject the notion of situational ethics (Briggs and Bernal, 1992). Thus, theoretically, the advertising practice embraces non-conditional ethical requirements. A number of professional associations that seek self-regulation of advertising in the United States have adopted a number of codes of conduct to 57 which practitioners are expected to adhere, emphasizing, in essence, the importance of deontological ethics. Research questions This study poses three research questions: a What are AAF members' overall perceptions of advertising ethics as oudined in four scenarios on ethics? [] Do such perceptions vary significantly by the type of ethical issue confronted? a What are the implications of the classical theory† of deontology for the self-reported ethics of the sample practitioners?Method Questionnaire development A three-part questionnaire that had six statements on each of four potentially troublesome scenarios on moral issues was designed and pretested for clarity† and face validity on 20 respondents randomty selected from the relevant population. Responses to six statements on eachscenario were anchored on a four-point scale: 1 for â€Å"definitely yes,† 4 for â€Å"definitely no. † Respondents were requested 😠® comment briefly on their responses to the scenarios.The scenarios were developed by reviewing the standards of practice developed by three advertising associations: the 55,000-member AAF, the largest association of advertising professionals whose code of ethics was established in 1965; the American Association of Advertising Agencies, whose code was first adopted in 1924; and the National Advertising Division/ National Advertising Review Board, whose ethics code was created in 1971. The reviews identified issues of greatest ethical concern to the advertising industry.Additionally, the research literature on ethics in marketing and advertising was also examined for insights on formulating the scenarios. Hunt and Chonko (1987), for example, in extending an earlier study by Rotzoll and Christians (1980), identified six 458 C. B. Pratt and E. L. James Data collection major ethical problems from the responses of 269 advertising executives to an open-ended question: â€Å"Would you please briefly describe the aspect of advertising that poses the most difficult ethical or moral problem confronting you in your daily work? † (p. 19).Also, Wood et al. (1988) used 16 vig nettes to examine the ethics of business students and business professionals. Similarly, Bellizzi and Hite (1989), DeConinck and Good (1989), Dubinsky et al. (1991), Fraedrich and Ferrell (1992), and Mason et al. (1990) used scenarios, vignettes and statements to assess respondents' perceptions of ethics. Such hypothetical, ethics-related scenarios provide insights into business ethics, and have been found useful in replicating real-world situations for the purpose of evaluating moral conduct (DeConinck and Good, 1989; Dubinsky et al. 1991; Madden, 1989; Hegarty and Sims, 1979). A single-wave mail survey was used to collect data from the practitioner sample from the fall of 1991 through the winter of 1992. To encourage candid practitioner responses and to obtain an optimal response rate, a hand-typed, individually addressed covering letter, in which respondent's anonymity was assured, accompanied each questionnaire. A business-reply envelope was in each piece of mail. Respondents we re requested not to write any identifying information on the questionnaire. Results [email  protected]'le on respondents SamplingA systematic random sampling procedure was used to select names of AAF clubs and federations from the 1991 roster of the AAF. Following the receipt of notification that club participation in the survey had been approved, we mailed 2,010 copies of the questionnaire to executive directors or secretaries of clubs. Copies were distributed during general meetings of the clubs. Four hundred eighty-one of the 2,010 copies were returned in a single-wave mailing, yielding a 23. 9% response rate. Only 460 (22. 9%)were usable. This low response rate is consistent with those of similar studies (Akaah, 1990; Chonko et aI. 1987; Fritzsche and Becket, 1984; Greyser and Reece, 1971; Hunt et al. , 1984; Myers et al. , 1980; Randall and Gibson, 1990), which reported response rates between 17% and 31%. One hundred seventy-four respondents provided reasons for their respons es to all four scenarios, for an item-response rate of 37. 8%. Because one purpose of this study is to analyze respondents' reasons for their philosophical perceptions, the analyses of responses focus on those respondents who provided such comments. Table I presents a seven-item profile on the 174 respondents. The gender split was almost equal.About 4% of the respondents were 25 years or younger, 29% were between 26 and 34 years old and 34% between 35 and 43 years old. Eight percent and 5. 7% were in the 53-years-to-61-years and the 62years-or-older categories, respectively. Respondents represented each of 25 states in the United States. However, four states – California, Colorado, Illinois, Michigan – each had 10 or more open-ended responses. California, with 44 returns, had the most responses. More than one-half of the respondents had between one and 10 years of full-6me advertising experience, 26% between 11 and 20 years' experience, and 11% between 21 and 30 years' experience.About 1%had more than 40 years' experience. With regard to respondents' institutional affiliations, about 44% worked in an advertising agency or department, 17% in companies or corporations, 3. 4% in nonprofit organizations, and 32% in other organizations. About 35% of the respondents indicated that they were in top-management positions, for example, as owners, presidents, executive vice presidents, vice presidents, and directors. Twenty-six percent were categorized in upper-middle management positions: division heads, supervisors, managers.About 40% were categorized in lower-middle management positions, for example, as account executives, while 3%were categorized as non-management personnel. Advertising and Classical EtkicaI Theory TABLE I A demographic profile on respondents (N = 174), in percentages Gender Female Male States with 10 or more responses California Colorado Illinois Michigan 25. 3 6. 9 5. 7 10. 9 50. 6% 49. 4 459 While 24% of the respondents did not super vise any employees, a majority held supervisory positions. About 63% supervised between one and 10 eraployees, 7% between l l and 20, and about 3% more than 21 employees.Respondents' evaluation of and conmaents o n scenarios Scenario No. h (Giving gifts to a potential client) This scenario focused on a female ad person who gave gifts to a potential client with the intent of receiving assistance from the client in obtaining the latter's account. Slightly more than one-half of the respondents said that the ad person was wrong, t7% reported that she should be fired, 40% would do just what she did, while 56% said that most ad execs would do as she did. About 83% said their firms should address the situation formally in a policy.In this scenario, gift-giving perse was not an issue; however, the intent of that practice is important because one study (Hire and Beltizzi, 1987) indicated that gifts tend to obligate a client to a firm. Some respondents in the present study considered it a bri be. One, for example, wrote: â€Å"Any company I managed had a written policy on such matters. Mary would have been reprimanded orally and in writing. A copy would be placed in personnel file. This would contain a ‘warning. ‘ Next time, fired. † Another: â€Å"If it was an overt bribe it was wrong. If it was really a gift then no problem. A respondent who was blunt about the wrongness of the conduct defended its widespread occurrence in the industry: â€Å"What Mary did was wrong, but it is common practice in a more subtle way. † Perhaps reflecting the percentage of respondents who said that most ad executives would do what the ad person did, a number of respondents pointed out that the situation â€Å"happens quite frequently,† that it is â€Å"common practice,† that â€Å"‘gifts' is a highly ambiguous term,† that it is â€Å"standard in the industry,† that most account executives â€Å"routinely give away whatever they can to get business,† and that â€Å"romancing the client is part of business. Therefore, they think that nor much is wrong with it. In fact, most argued that it depended on the nature of the gift. Age 25 or younger 26–34 35–43 44–52 53–61 62 or older Years in full-time advertising 0 1-10 11-20 21-30 31-40 More than 40 years Work Setting Advertising agency/department Public relations agency/department Non-profit organization Company/corporation Other Management position Top management Upper-middle management Lower-middle management Number of employeessupervised 0 1-10 11-20 21-30 31-40 41-50 5t or higher 24. 1 62. 7 6. 9 2. 9 1. 7 1. 1 0. 6 34. 5 25. 8 39. 7 43. 7% 3. 4 3. 4 17. 2 32. 2 6. 52. 3 25. 9 10. 9 2. 9 1. 1 4. 0 29. 3 33. 9 19. 0 8. 0 5. 7 460 C. B. Pratt and E. L. James TABLE lI Responses to statements on ethics scenarios % yesa Mean u SD Statements on Scenario No. 1 (Giving gifts to a potential client) 1. What Mary- did was wrong. 2. Ma ry should be fired. 3. I would do just what Mary did. 4. Most ad execs would do just what Mary† did. 5. My firm/dept, has a policy, either written or oral, that addresses this situation or practice. 6. Regardless of mr† response to No. 5, it is a good idea for my firm/dept, to have a policy, either written or oral, that addresses the situation or practice.Statements on Scenario No. 2 (Lying about an update on an account) 1. What John did was wrong. 2. John should be fired. 3. I would do just what John did. 4. Most ad execs would do just what John did. 5. My firm/dept, has a policy-, either written or oral, that addresses this situation or practice. 6. Regardless of my response to No. 5, it is a good idea for my finrddept, to have a policy, either written or oral, that addresses the situation or practice. Statements on Scenario No. 3 (Seeking confidential information) 1. What Pete did was wrong. 2. Pete should be fired. 3. I would dojffst what Pete did. . Most ad execs wo uld do just what Pete did. 5. My firm/dept, has a policy, either written or oral, that addresses this situation or practice. 6. Regardless of my response to No. 5, it is a good idea for my firm/dept, to have a policy, either written or oral, that addresses the situation or practice. 63 18 40 47 22 2. 16 3. 35 2. 01 2. 43 3. 28 1. 14 0. 852 0. 961 0. 856 0. 917 59 18 57 78 24 2. 29 3. 43 2. 48 3. 00 3. 23 1. 05 55 17 40 56 31 2. 36 3. 40 2. 01 2. 62 2. 99 1. 18 0. 811 0. 982 0. 939 1. 15 83 1. 68 0. 918 0. 807 1. 03 0. 825 1,05 72 2. 04 1. 05 67 2. 12 1. 01Advertising and Classical Ethical Theoly Table)8 (Continued) %yes ~ Statements on Scenario No. 4 (Using outdated data) Mean b 46 t SD What Sally did was wrong. Sallyshould be fired. I would do just what Sally did. Most ad execs would dojust what Sally did. My firm/dept, has a policy, either written or oral, that addresses this situation or practice. 6. Regardless of my response to No. 5, it is a good idea for my firm/dept, to have a policy, either writtm. ~or oral, that addresses the situation or practice. I. 2. 3. 4. 5. 82 46 11 36 41 t . 62 2. 68 1. 51 2. 26 2. 84 0. 993 1. 07 0. 742 0. 9 t0 1. 12 81 1. 77 0. 39 a Percent responding â€Å"definitely yes† or â€Å"maybe yes. † b On a four-point scale, with 1 = â€Å"definitely yes† and 4 = â€Å"definitely no. † A lower mean score indicates a stronger agreement with a statement. Another, perhaps thinking situationally, asked: â€Å"Is it a pen, a ticket to a concert, or an automobile? † A president of an ad agency said: â€Å"Often, in this business, I encounter prospective clients that have been ‘wined and dined' by their previous agency. Some expert preferential treatment. The prospects that find this offensive and rely mostly on our agency's ethics, expertise and integrity are those we desire.This philosophy has lost us business, slowed our growth . . . . Business ethics unfortunately in the ad business is perceiv ed next to snake oil salesmen! † was wrong substantiated their positions with the following reasons: â€Å"There definitely are times when one must prioritize his/her workload . . . One should not lie to the client but instead talk openly about a schedule of completion and possibly see ifa delay would be acceptable. † D,- â€Å"Schedules for each project~client are developed on approval of estimates. All work is to be done per that schedule, regardless of dollars involved. â€Å"A company should try to meet a ctienCs deadlines no matter the size o f the account. † O n the other hand, some of those who felt nothing wrong had occurred said: ‘[john did tell the t r u t h . . . For John to tell the whole truth is simply suicidal. Agencies are always juggling workloads. † m,- â€Å"What John said was not a definite lie. As long as you do not directly tie about a scenario, don't worry. † m,- ‘[John did what most people would do, then work a li ttle harder to get the other work OUt. † &enario No. 2: (Lying about an update on an account)This scenario was on the failure o f an ad agency staffer to tell a client the truth about the status o f the client's account, which had been set aside temporarily in preference for a newer, higher-hilling account. Fifty-nine percent said that the ad agency staffer was wrong, 18% said that he should be fired, 57% reported that they would do just what he did, while 78% said that most ad execs would do what the staff did. About 72% said their agencies should address the situation in a policy. Some of those who argued that the agency staff â€Å"I see no reason to forfeit future business and, 462 C. B. Pratt and E. L. James herefore, would use whatever means necessary to maintain the relationship. † did. Eighty-one percent said that their agencies should address situation in a policy. Respondents were clearly angered by the ad executive's action. A respondent said: â€Å"This con duct is indefensible. The client paid for both the campaign and the research (I assume) and is entitled to their results. † â€Å"There should be truth in advertising and in all of life's encounters, business or personal. † Another: â€Å"Sally practiced deception in not using those current poll results. The client is bound to find out what sort of results the corporate image has, eventually. Yet another: â€Å"Bad judgment to cover up facts. Corrective measures to improve numbers in future campaigns should be provided to client. † Some arguments made in behalf of the ad executive: †¢ â€Å"They [the numbers] can be used as indicators, but not absolutes. How many people do you know that have participated in TV Nielsen rating surveys and how many programs have the networks cut or kept that you disagree with? † â€Å"What Sally did was not necessarily wrong or right, given the question. Possibly the campaign required more impact, time, etc. Too many v ariables in this situation to judge ethics. † â€Å"Numbers are arbitrary and research is imperfect.One set of ‘bad' numbers is, therefore, inconclusive. † &enario No. 3: (Seeking confidential information) During a social meeting, one ad account executive craftily encouraged another obviously inebriated ad executive who handled the account for a competing brand to divulge confidential business information. Sixty-three percent said that the ad account executive was wrong. Eighteen percent said that he should be fired, and 40% that they would do just what he did, while 47% said that most ad execs would do what the executive did. Sixty-seven percent said the ad agency should address the situation through policy-making.Among all four scenarios, scenario No. 3 had the second-highest disapproval rate among respondents. One respondent made a blunt, succinct comment: â€Å"A definite breach of professional ethics. † Another: â€Å"This is unacceptable as well as u nethical behavior. Once the account exec had identified himself, Pete should have identified himself as well. Pete should be reprimanded for his actions, maybe even fired if it appears as if this same scenario would continue in the future. † Another: â€Å"It was wrong not to identify himself. † Yet another: â€Å"Pete's taking advantage of his ‘counterpart' was opportunistic and immoral. A respondent who saw nothing devious here argued: â€Å"It is a very competitive market. Taking advantage of the competition's weakness or stupidity is a must. † Another argument: â€Å"Corporate espionage is no more or less right or wrong than is political espionage. † †¢ †¢ Comparison of means Scenario No. 4: (Using outdated data) In an agency's report to a client, a female ad executive used outdated data that were favorable to both her ad agency and client, while ignoring new, unfavorable information. Eighty-two percent – the highest among all s cenarios for statement No. – said that the female ad executive was wrong, 46% said that she should be fired, 11% that they would do just what she did, while 36% said that most ad execs would do what she Two analytical procedures were used to compute and compare responses to all four scenarios. First, the percentage response to each statement was computed for comparison of the directions of response patterns. Second, item-by-item statistical differences between 36 possible pairs of responses across all four scenarios were determined. Schefft's (1953) multiplecomparisons were used to determine such differences (Table III).Twenty-five of those 36 pairs and four of the six variable pairs of grand means were significantly different (p ;lt; 0. 05, at least) from each other, indicating respondents' differentiation of their evaluation of the scenarios. Thus, this result indicates Advertising and Classical Ethical Theory TABLE III Comparison of means, grand means (and standard deviati ons') for four scenarios on advertising ethics Scenario One 2. 3; (1. 18) 3. [email  protected] (0. 811) 2. 0P (0. 982) 2. 62~ (0. 939) 2. 99~ Scenario Two 2. 29~ (1. 05) 3. 4Y (0. 807) 2. 48b (1. 03) 3. 00b (0. 825) 3. 23b Scenario Three 2. 1; (1. 14) 3. 35~ (0. 852) 2. 0P (0. 61) 2. 43~ (0. 856) 3. 28b 463 Statement 1. What X did was wrong. 2. X should be fired. 3. I would do just what X did. 4. Most ad execs would do just what X did. 5. My firm/dept, has a policy, either written or oral, on situation or practice. 6. Regardless of my response to No. 5, it is a good idea for my firm/dept, to have a policy, either written or oral, on situation or practice. Grand Mean Scenario Four 1. 62b (0. 993) 2. 68b (1. 07) 1. 5V (0. 742) 2. 26d (0. 910) 2. 84~ (t. I 5) (1. 05) (0. 9! 7) (1. 12) 1. 68~ (0. 918) 2,63~ (0. 406) 2. 04b (1. 05) 2. 58~,b (0. 362) 2. 12b (1. 01) 2. 74c (0. 378) 1. 77~ (0. 39) 2. 52b (0. 401) ~,b. ~ Means with different superscripts on the same row are significantlyà ¢â‚¬  different, by ScheffS's repeated-measures design. Note: Means are on a four-point scale, with 1 for â€Å"definitely yes† and 4 for â€Å"definitely no. † Statements 3 and 4 were reverse-coded as t for â€Å"definitely no† and 4 for â€Å"definitely yes. † A lower mean score, therefore, indicated higher self-reported ethical standards. that the sample practidoners' perceptions of ethics vary significantly by the type o f ethical issue confronted, suggesting perceived differences in the intensity of the application of deontology to the scenarios.Fritzsche (1988) and Fritzsche and Becker (1984) reported similar differences across vignettes, and concluded that marketing managers practiced situational ethics. For three of the four scenarios, respondents tended to agree with the statement that the advertising staff involved in the conduct identified in each of the scenarios took the wrong action. However, they tended not to agree that the staff should b e fired. It was only in scenario No. 4 (using outdated data) that members tended to perceive the conduct as wrong; even so, the mean response to the statement that the staff â€Å"should be fired† was 2. 8, which was significantly different (p < 0. 001) from re- spondents' positions on the firing of the three other practitioners in the other three scenarios. Contextual response An overall evaluation of the respondents' evaluation of the wrongness or rightness of a conduct – the essence of Kantian ethics – indicates that the sample AAF members leave little doubt about their positions on the scenarios outlined in the questionnaire. However, when the evaluations of the statements, taken together, are considered within the context o f classical ethical theory, the members' ethics leaves much to be desired.Four questionnaire statements (items 1, 2, 3 and 6 of Tables II and III) were used as direct measures of deontology: â€Å"was wrong,† â€Å"should be f ired,† â€Å"I would 464 C. B. Pratt and E. L. James do,† and â€Å"regardless of my response. † It must be noted here that, even though deontology does not address explicitly the severity of the punishment for an ethical infraction, the theory is not neutral on punishment. Justice is one of the moral values that deontology considers – even though not always explicitly. In mixed-rule and mixed-act deontology, the consequences of one's actions are considered.In essence, there is a built-in role for consequences. This was why Kant, admittedly vague in some areas, invented moral rules in the first place. Responses to the four deontology-related statements provide four indications of the extent of practitioners' adherence to Kantian ethics. First, the respective percentages (28. 7%, 28%, 40% and 65%) of respondents who reported that the actions of the practitioners cited in the four scenarios were definitely wrong indicate that fewer than one-half applied deon tological theory to three of the four scenarios.Second, that the practitioner should be fired, the ultimate test of ethics (Singer, 1992), had much lower, definite approval rates: 1. 7%, 1. 1%, 3. 4%, and 16. 1%. Third, the response percentages for item 3 (â€Å"I would do just†¦ â€Å") in scenarios one, two, and three indicate that a sizable number of respondents would engage in the questionable behavior outlined in the scenarios. For scenario four, however, 11% said that they would â€Å"definitely† or â€Å"maybe† engage in a behavior that 82% of them reported as wrong.Finally, on item 6, a clear majority indicated an interest in organizational response to the issue raised in each scenario. The response percentages for statements 1, 2, and 3, therefore, indicate that practitioners' evaluations are clearly at odds with tile tenets of deontology and are perhaps more in line with utilitarian and relativistic theories. A further indication of the sample practiti oners' adherence to deontology is provided by those who responded â€Å"definitely yes† or â€Å"maybe yes† to all four measures of deontology in all four scenarios.The results: 10% 10%, 16%, 32% for scenarios 1, 2, 3, and 4, respectively. Such low percentages suggest that a majority of members wavered in applying deontology to the ethical dilemmas with which they were confronted. Bishop (1949) argues that truthtelling (addressed in scenarios 2 and 4) in advertising is â€Å"impossible and the attempt to attain it would reduce advertising to complete ineffectiveness and prevent it from fulfilling its legitimate and necessary function† (to. 88).Yet, the first of AAF's eight-principle code of ethics, albeit stated in general terms, focuses on truthtelting: â€Å"Advertising shall tell the truth, and shall reveal significant facts, the omission of which would mislead the public† (American Advertising Federation, 1984). While AAF members report that their com panies adhere to AAF principles, they report that other ad agencies tend to adhere less strictly to those principles (Chonko et al. , 1987). Adherence to the truth principle is not only evident among AAF members but it has the largest â€Å"my† versus â€Å"other† company difference ([t – 23. 2, p < 0. 01] Chonko et al. , 1987). A number of U. S. corporate executives now realize that if ethical transgressions are not sanctioned by dismissals, they could encourage all kinds of shady dealings and foster the perception that the organization is not really committed to ethics (Singer, 1992). It is plausible that a mix of utilitarian, JudeoChristian, veil-of-ignorance, and golden-mean ethics simultaneously guided the sample practitioners' evaluation of the ethical scenarios used in this stud),. However, the investigation of the application of various ethical theories to decision-making was not a purpose of this study.Empirical studies on ethics (e. g. , Ferrelt and Weaver, 1978; Fritzsche, 1988; Fritzsche and Becker, 1983; Krugman and Ferrell, 1981; Pratt, 1991; Pratt and McLaughlin, 1989) increasingly indicate that ethics among business people is frequently not perceived in absolutist terms, but in relative shades of right and wrong. Fritzsche (1991, 1988) and Jones (1991), for example, report that situational ethics is the overwhelming preference of U. S. managers. Advertising codes of ethics are usually written in precise deontological terms, for example, â€Å"must recognize,† â€Å"will not,† â€Å"shall tell the truth,† â€Å"shall refrain from. Yet, AAF members do not seem to abide by deontology even though â€Å"an enforced, effective code should provide the profession with a degree of stability and consistency in the ethical decision-making of its members† (Beets, 1991, p. 69). It is plausible that the patterns of responses in this present study suggest adherence to utilitarian ethics, which is preferred by advertising agency personnel Advertising and Classical Ethical Theory (Rotzotl and Christians, 1980; Christians et al. , 199 I). On the other hand, utilitarian ethics seeks to maximize the good for all concerned.However, the limitation of this ethical theory is inherent in how the â€Å"good† is determined. Beyond that, the interests of the minority tend to be given short shrift. What, therefore, are the chances that advertising-agency actions will result in the â€Å"greatest happiness for the greatest number†? Also, Nevett (1985) disagrees with Bishop's (1949) suggestion that the ethical standards of advertising be utilitarian because such an approach cannot â€Å"provide advertising people today with guidance on suitable ethical standards for their profession† (e. 04). Rawls (1971) criticizes utilitarianism, noting that it does not take seriously the differences among people; rather, it views as morally just that which has the sum of satisfactions (or tota l utility) for the community. As an alternative to utilitarian thought, Rawls (1971) suggests â€Å"a new moral theory† that will give adequate account to the primacy of justice, understood as the protection of the equal rights of all individuals, over the social good† (Schaefer, 1979, p. 22).To accomplish equal justice in society, therefore, everyone should assume a hypothetical â€Å"original position† – behind a â€Å"veil of ignorance† – which requires that, in evaluating situations, people step from their everyday, status-based traditional roles into an egalitarian position behind a veil. The goal is to develop a conception of justice or of the good from a disinterested, â€Å"equal† perspective. Would a recommendation that practitioners who compromise the ethical standards identified in the scenarios be fired be an illustration of such justice?And would such firing be in an organization's or in a society's best interest? Finally, it is plausible that Judeo-Christian morality – an altruistic, religion-based tradition – is also reflected in respondents' evaluations of the dilemmas in the ethical scenarios. 465 perceived as â€Å"definitely† having such policies for each of the four scenarios (and those who â€Å"definitely† think that having such policies is a good idea) are, respectively, 17. 8 (56. 3), 11. 5 (38. 5), 4. 6 (33. 3) and 15. s (50 0).The large differences between having such policies and thinking that having such policies is a good idea lends credence to the continuing public and practitioner concern over advertising ethics. For advertising agencies, such policies could result in two possibilities: (1) they may encourage agencies to also apply deontology to ethical issues, and (2) they may help agencies initiate an eclectic approach to ethical decision-making – that is, to apply ethical principles that may involve bringing all five commonly used classical theo ries to bear simultaneously on the decision-making process.These five theories, which are not mutually exclusive, fall into one of two broad categories: deontology or teleology. They are (1) Aristotle's golden mean (â€Å"moral virtue is appropriate location between two extremes†); (2) the theoretical framework for this present study, Kant's categorical imperative (â€Å"act on that maxim which you will to become a universal law†); (3) Mill's principle of utility (â€Å"seek the greatest happiness for the greatest number†); (4) Rawls's (1971) veil of ignorance (â€Å"justice emerges when negotiating without social differentiations†); and (5) Judeo-Christian persons as ends (â€Å"love they neighbor as yourself†).Aristotle's theory of the golden mean, a virtuebased ethics, strikes a moral balance between two extremes, one indicating excess, the other deficiency. The mean, in this context, is not a statistical mean but a willingness on the part of th e decision maker to exercise moderation or temperance – a virtue. Such a mean rdates to the individual's particular situation, her or his stay. is, strengths and weaknesses (Chi'istians et aI. , 1991). Utilitarian ethics, a form of teleological ethics, was enunciated by John Smart Mill as that which seeks â€Å"the greatest happiness for the greatest number. To assess the â€Å"greatest good,† a person or organization performs a cost-benefit analysis of an action or decision. If the latter would result in the good of the majority, that is, if its benefits for the â€Å"greatest number† outweigh its costs, then the act is ethically right. Rawls's (197 t) veil of ignorance, a nonconsequen- Conclusion The results presented in this study indicate a strong (perceived) reluctance on the part of the ad agencies to institute policies, either written or oral, that would proscribe unethical conduct. The percentages of respondents whose firms or departments are 466C. B. P ratt and E. L. James tialist theory of justice, governs the assignment of rights and duties and regulates the distribution of social and economic advantages. People, Rawts (197I) argued, â€Å"have an equal right to the most extensive basic liberty compatible with a similar liberty for others† (Rawls, 1971, p. 60). Finally, Judeo-Christian morality is an altruistic tradition that is being popularized in the West as â€Å"the more dramauc term agape – unselfish, otherregarding care and other-directed love, distinct from friendship, charity, benevolence, and other weaker notions† (Christians et al. 1991, p. 20). The interpretation of the results of this present study within the context of Kantian ethics suggests that deontology is clearly not the preference of the sample practitioners. The de-emphasis of deontological ethics among practitioners is likely to engender a laissez faire approach to ethical issues. Dubinsky et al. (1991) suggest a reason for this phenom enon from an overall business perspective: â€Å"Many of the situations business people confront are in a ‘gray' area where the delineation between the right versus the wrong action is not clear† (p. 52). On the other hand, strict deontologicaI ethics could encourage advertising practitioners to understand the precise boundaries of ethical and unethical conduct, as has been found among salespeople (Michaels et at. , 1988). It has been reported that managers who apply deontological ethics under uncertain conditions are least likely to change their decisions even when they perceive the risk of their decisions; those who apply utilitarian ethics are more likely to change their decisions to satisfy financial and/or self-esteem goals (Fraedrich and Ferrell, 1992).And herein lies a crucial value of deontological ethics to advertising: more likely, it will encourage advertisers to adhere to the precepts of ethics, setting aside personal financial and social rewards for the pub lic good. At least 67% of the respondents in the present study suggested that their organizations establish policies on questionable conduct (item 6). Why did such a majority suggest such boundaries on behavior? Why would they prefer that formal company policies restrict questionable behaviors?It is plausible that the sample practitioners place much value on formal policies because of the perceived importance of affirmation on what they consider ethical or unethical. Further, such a formal process may indicate more than a perfunctory commitment of their organizations to ethics. This possibility suggests two key questions on the implications of the results of the present study for policy-making: (1) Where lies the responsibility for shaping advertising agency ethics? (2) And what relevant does deontology have for the training of advertising staffs?In a speech given two dozen years ago by Bill Marsteller, founder of the advertising agency, Marsteller Inc. (a forerunner of Burson-Marst eller, the world's third-largest public relations agency), he said: â€Å"It is not enough [for the advertising student] to simply attain general standards of morality and taste; it is important to be subjected to the deliberate considerations of advertising morality and taste†¦ † (Marsteller, 1972, p. 241). Marsteller sees education in advertising ethics as important as that for the production of creative, charming advertising.Just as the effectiveness of training sessions has been called into question (Feldman and Thompson, 1990; Levin, 1989), their impact has also been demonstrated (e. g. , Feldman and Thompson, 1990; Hanson, 1987; Harris and Guffey, 1991). On balance, however, it behooves ad clubs and various advertising associations to establish programs that, at the minimum, sensitize practitioners to some of the social and professional sequelae of their ethics-related decisions. The results of this limited study justify the adoption of such measures.Caveats Two li mitations of this stud), should be outlined. The first is the old issue of â€Å"self-reported† ethics. Even though measures were taken to discourage the use of socially desirable responses, that possibility cannot be ignored because perceptual distoruon is higher when the dependent variable is as highly sensitive as the subject of ethics (Hunt et al. , 1989; Randall and Fernandes, 1991). The second is the representativeness of the sample, which was drawn from 25 states, for the 50,000member AAF.Because the sample was not randomly selected, it is important that this present study be replicated on a larger, more geographically diverse sample to determine the extent to which its results are consistent with those of such a nationwide study. Advertising and Classical Ethical Theory

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Thank you letter - Essay Example I am quite hesitant in writing this letter, but the urge of admission within me is pushing me ahead to explain my position. I'd like to emphasize here that I've always earned top scores in Mathematics including calculus I, II, III and pre calculus and algebra. I was able to secure an 'A' all through. Similarly English has also been one of my strengths. But, during the test of reading comprehension and quantitative reasoning there was something which prevented me from concentrating well on the subject. I was given two black markers from the testing center. By mistake, I left these markers open during the test and by the end of the second section these markers dried out. When I called for help couple of times, the testing instructor went out of sight for durations ranging from couple of minutes to about ten minutes. As time progressed, I became little tense as there was time constraint for the test, so I had to hurry up, which in all probability appears to have influenced my test score . You can ascertain the fact, if you could take a look at my past grade on those two subjects. So I'll be grateful to your goodself, if you could take a look at my individual score rather than the entire DAT test score. I am willing to sit for a retake DAT as soon as possible to prove my point.

Symbolized and What it Meant to America Essay Example for Free

Symbolized and What it Meant to America Essay Though the negative preconception of the general American public was the widely carried message of newspapers before and during the early days of the said event, this is not what was covered by Colliers article since it was released during the last day of the event already. Therefore, what the article presented as the sentiment of America for the event, in the context of what happened during the supposedly last day of the event, was that of respect and commendation over the behavior of the hundred thousands youths who attended the event. This is exemplified by the same paragraphs in the previous page that Collier used to convey a positive image for the event. If we are to extract the American sentiment over the event from those few that were interviewed for the article, it could be viewed that America was surprised by and approved of the behavior of the participants, which was characterized by astonishing courtesy, order, and harmony. Coming from an explicit expectation of negative behavior from the youth who were going to attend the event, it could have really been such a pleasant surprise to America that the youth was able to rise above all their preconceived notions. However, it would be also reasonable to imagine that along with the positive perception of the American public over the relative success of the event was the concern over what was revealed the prevailing culture of drugs among the youth. With the reports of the event showcasing how drugs adversely affects the health of the youth and even lead to death and how the youth blatantly welcome such practices and even treats it as a culture, there is little argument that the rest of America who are not part of the said generation and culture is worried over the possible results of such a phenomenon in the long run. Thus, basing from Collier’s article, it could be said that America’s perception of the event could have been a mixture of both positive and negative things. Positive in terms of respect over the triumph of the American youth in staging such a peaceful display of unity, and negative in terms of their concern over the impending effect of the youth’s blatant drug practices. However, the respect for the youth and their generation’s culture that has been planted by the event in the hearts and minds of the American people is something that could not be erased for generations to come. A. What the Event Symbolized and What it Meant to America In Collier’s article, what was portrayed as the symbolism of Woodstock for those who participated in it was â€Å"an incredible unification† of people. Woodstock, for the youth who attended it, was the fulfillment of their thrilling expectation of being able to meet strangers who shared their practices, beliefs, and culture. The event was also a fulfillment of the youth’s eagerness to experiment with drugs along with all the other people of their generation. This is based form a paragraph in Colliers article . As for the rest of America who were not there at Woodstock and who were not part of the culture that Woodstock fostered, the event could still have symbolized a positive thing. For them, Woodstock could have been a symbol that though the youth of America have been practicing a culture entirely different from that of the previous generations, that does not mean that the generation was of no good. Woodstock could have well been a symbol that the youth of that day deserved to be respected for being the beautiful people that they are and for the beautiful things that they are able to do, beyond the prejudice that they have been faced with. For America, Woodstock could have meant that where their youth puts their heart into, there would also be peace, harmony, and beauty.

Fonterra Cooporative Group Limited globalization and competitive

Fonterra Cooporative Group Limited globalization and competitive In this report is are discussing about the how the Fonterra Co-operative Group Limited (Fonterra) can gain the competitive advantage in the market and what strategies has been adopted by the Fonterra company through globalization, under the finding of this report it will evaluated the SWOT analysis of Fonterra company ,by using the SWOT analysis how Fonterra can clearly know the companys key business structure and operations, history and products, strength ,weakness ,Opportunity and weakness ,beside that it also discuss about the porter five forces about how Fonterra have adopted the strategies to gain the competitive advantages in global market and how Fonterra compete with the competitor . Beside that this report also discuss about how the Fonterra adopted the total quality management, brand strategies, product repositioning and supply chain in order to sustain it success in long term Some research has been done to write this report. All the research sources are based on book, website, journal articles, and media articles. The information from the sources helped to discover how Fonterra the increase the market share in some market such as using alliances strategies in some high competitive market ,how to repositioning to gain more market share and how their establish the brand into the consumer mindset 1.0 History of Fonterra Company Fonterra Co-operative Group Limited (Fonterra) owned by New Zealand dairy farmers and it representing 96 per cent of all dairy farmers in the country. As we know the Fonterra Co-operative Group Limited was established in year 2001 from the merger of the two largest cooperatives which is New Zealand Dairy Group and Kiwi Co-operative Dairies. (http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/fonterra+at+a+glance/about+us/our+history) through the merging within 2 companies, Fonterra gaining the monopoly control of the New Zealand domestic and export dairy industry. The headquartered of Fonterra the office is in and employs 15,600 people. Beside that Fonterra supplies nearly 40percent of the global whole milk powder (WMP) market (http://www.nbr.co.nz/article/nzx-launches-milkpowder-futures-103322) and with revenue exceeding NZ$16 billion and they become one of the worlds largest dairy companies. The operating profit in year 2009 was was NZ$922 million as comp ares to the year 2008 the operating profit have been increased around NZ$ 324million .and the net income in year 2009 also increased around 73% compared to year 2008 which is NZ$244 million.( http://www.foodista.com/book/MB5XFZ2M/fonterra-co-operative-group-limited-swot-analysis) As we know Fonterra is a supplier of dairy products and dairy ingredients. It principally engages in collection, manufacture and sale of milk and milk derived products. The company supplies value added dairy products to the customers around the world. In addition it also provides dairy ingredients which include, ready-to-serve beverages, butter, ready-to-serve creams, yoghurt, cheese, milk, ice cream, desserts and.  Its ingredients are used to manufacture a wide range of dairy products for markets around the world. We know that Fonterra is a dairy and dairy ingredients supplier. It is mainly engaged in the collection, manufacturing, and milk and dairy derivative product sales. The company offers value-added dairy products to customers worldwide. In addition, it provides dairy ingredients which include ready to drink beverages, butter, ready to serve cream, cheese, milk, yogurt, desserts, pre-proofed frozen pastry, and ice cream.a its ingredients are used in the manufacture of a wide range of milk Products in world markets. Some of the brand of Fonterra product we can easily found in market such as BROWNES, Anlene, FERNLEAF, ANCHOR, SOPROLE and TIP  TOP. (^ Leo Paul Dana, Jason Schoeman (2010). An Entrepreneurial Innovation: Mega Cooperatives. Asia Pacific Journal of Innovation and Entrepreneurship 4 (1): 67-88. http://jbia.jp/jpeg/APJIE4-1.pdf.) 2.0 SWOT Analysis SWOT analysis can essential the sources for top level company data and information .by using the SWOT analysis we can inspects the structure of business and the operation of the company .beside that it also will provides summary analysis of the main source of revenue lines and strategy and also the key competitors and major products and services. The figure 1.0 below is the analysis the SWOT of Fonterra company Strength Have the stable and secures supply of the milk resources in long term even the global demand is outstripping supply because of the uniqueness shareholder relationship within the farmer Due to the Fonterra is merging from 2 large of company of the large company in New Zealand so they pursue growth of the economic scale with the various resources. New Zealand is a higher productivity environmental for daily product. Large number expertise worker within the industry in the company. Weaknesses Due to the relationship of the supply is the vital of company to secure supply of the milk resources. The competitor could be pinch the supplier with the better price. Because of the merge the company the resources and infrastructure are overlapping and got resistance o restructure and relocation the infrastructure and resources Too reliable on climate and ecology .less efficiencies of the productivity compare to competitor. Opportunity They can reduce the barriers of entry in most market. WTO trade negotiations due to the lowest cost suppliers. The can increase the clean green image and value added of nutrition of it product. Threat Some of the country may increase the tariffs to protect the local suppliers. Some of supplying competitor may start to adopt more global Strategy. The legal and media crisis due to some issue. Too rely on exchange rates 2.1 Porters five forces analysis Porters five forces is a one of the strategies which can analysis the existing market and business strategy. By using these strategies Fonterra Company can develop effective strategies to raise your profitability, power, and competitive and understanding the competitive forces in your industry. 2.1.1 New Entrants Due to the de-regulated market structure of New Zealand and them also one of the member of the free trade country. In this way they might attract entrants competitor who are based for export oriented supply and processing .most of the Participants are mostly of the global entrants who preferring the low cost supplier nation with strategy of increasing export share. 2.1.2 Supplier Fonterra having the advantages in cost of items bought from suppliers because the have uniqueness shareholder relationship within the farmer. in the way the can get the lower cost supply and due to the relationship even the global demand outstrips supply of the milk resources they also will get the stable supply in long term. Beside that they also increase the efficiency of production in certain country such as India, china, Poland. For example they expending farm operation to increase production in china due to the current supply of high quality fresh milk cannot keep up with the demand of the current market for more information it can refer to http://www.sharechat.co.nz/article/9e40bb66/fonterra-milking-chinese-demand-expanding-farm-operations.html 2.1.3 Buyer Buyer is plays an important role in the market because they is the one who create the demand in an industry .as we know dairy product is a standardized product .Fonterra are facing the volatile price of the dairy product because of the changes in supply and demand of the product this is because most of the consumer are changing the eating habit beside that due to the floods in the dairy producing country it already affect the global stock. So they introduce a new online sales channel for its dairy commodities which can quickly notice to the price change of the dairy product. (http://www.nutraingredients-usa.com/Product-Categories/Dairy-based-ingredients/Fonterra-develops-online-trading-for-dairy-commodities) 2.1.4 Substitutes Dairy milk is a natural product how ever it also got some substitutes for it product such as soya milk, goat milk and other it will affect the demanding of the milk product in this way it might affect the profit of the Fonterra Company 2.1.5 Internal rivalry As a global company, Fonterra have to compete with the competitor such as Nestle, Kraft and other which are the global operation industry and rapid growth in the share market. Even a Fonterra company is a merge from the 2 large in New Zealand but they also face the threat from the global competitor because they might using the free trade to increasingly global market strategies .Fonterra have been consolidate dairy resources in the industry by being merged into larger and more efficient competitor . 2.2 Total Quality Management (TQM) Because fonterra is daily industry, the hygiene and health of the product should be awareness so that quality of the product are important to them because it might affect the image of the company if some customer was food positioning after taking the companys product .so the internal quality control of the product are plays an important role to build the competitive advantages in the market and also meet the customer satisfaction .Total Quality Management (TQM )system have been introduce to their company. Through the TQM they can increase the ISO accreditation because this is one of the ways for them to control the quality of the product. By this way company will have high confident to their product and also can easily get the trust from the customer as well for example New Zealand dairy giant Fonterra said Wednesday it is 100 percent confident in its milk supplies to a Chinese company under investigation over claims of tainted milk powder. (WELLINGTON, 2010)appendix 1 because of the TQM system they will highly defined the procedure and standards of their product. Beside that they also provided the training to all the staff evens the truck driver they also ensure they are well train and professional driver and meet the industry standard. 2.3 Strategies Repositioning Business repositioning is a critical marketing concept that is often only poorly understood. Most businesses will benefit greatly from some careful thought about strategic repositioning and product repositioning (http://www.m-insights.co.uk/business-repositioning.html) for the Fonterra they are keep on investing in the consumer product division ,new Zealand milk well this is an option or decision from Fonterra .but in this way the core supply competencies of Fonterra will be overlook . We know that Fonterra is a unique export-oriented global cooperation. They have won because of its experience in and knowledge of organizational respect for the dairy industry. In Asian countries, Fonterra has been re-positioning their Anlene product with the new clinically test which is protect bone strength within 4 week if women are drank 2 glass of Anlene hi calcium milk a days which able to reduces the amount of bone loss in post-menopausal after 4 week .thought the research Fonterra company has spent more than us$50 million on bone health research and it has conducted 18 clinical trials relating to bone health. In Indonesia Fonterra have gained the market share risk from 43% to 72% of the high calcium milk adult dairy product category and it become the market leader of the high calcium milk adult dairy product category across Asia and has experienced a 15% increase in growth this financial year 2009 due to the repositioning of the product Fonterras Anlene gets boost in Asia. (http://milk-brand.chikaworldfood.com/T_13248_____fonterra%E2%80%99s-anlene-gets-boost-in-asia.htm) 2.4 Supply Chain The supply chain can be define as the a collection of activities and organizations involved in moving products for example, raw materials from one point such as a manufacturers facility to another such as a customers distribution center. It includes the exchange of both material and associated information flows for example, shipment notices. (http://ops.fhwa.dot.gov/freight/publications/ftat_user_guide/sec5.htm) From the supply chain analysis, Fonterra can how and where the product resources from and how and where their selling end product. We know that Fonterra dairy is owned by the dairy farmers in New Zealand .they got approximately 13,000 milk suppliers and they also one of the shareholder of the company .beside the shareholders milk supply .Fonterra also got other addition milk supplier where from the other country such as dairy America and DFA from the united state, Nestle from the America,Bonlac from Austria and other because Fonterra is a international dairy companies. Fonterra have 80 plants around the world which for processing and manufacturing the resources. Beside that they also got 3 main research and development plants which at Massey (New Zealand), Mexico and Germany. Fonterra is a worlds largest multinational food companies and they have a good global distribution network for distribute the end product to whole world because they have been exported milk out of New Zealand around 20 year ago. They are exported the end product to Asia Middle East, Africa due to the high demand of the dairy product. Due to the production of dairy product is much more then the demand on it country. Fonterra are more widespread to use of rail to shipping their products throughout the country. This will enable us to get more frequent, flexible and reliable shipping options by this way it can give their customers greater confidence that our products can be delivered on time. In order to gain the market share and competitive advantages in the high competitive market .Fonterra are alliances with existing national dairy company in country to expanding dairy market. By using the alliance strategies they can expend dairy market in the country with the minimum cost. For example they have announce that a new joint venture in the United Kingdoms highly-competitive yellow fats market thought the alliances they establishment a new company that to be responsible for distributing and market of the product of ANCHOR brand in the UK country domestic market and developing the new product for the yellow fats market in British Isles and EU respectively. Fonterra mainly have divided the market place into 4 channels due to wide product range the four channels which is foodservice channels which is restaurants, hotels, bakeries. Retail channels such as supermarket, wholesalers, by product channels such as biotechnology, pharmaceuticals and consumer channel which is milk powder, cheese, yogurts and other. Each channel has different demand on the dairy product. (http://www.highbeam.com/doc/1G1-79373875.html) (Chen, I. J., Paulraj, A. (2004): Towards a theory of supply chain management: the constructs and measurements. In: Journal of Operations Management, 22/2: 119-150) 2.5 Branding Strategies By using the branding strategies Fonterra can understand the customer preferences and expectations from the brand beside that it also can make you product different from other product .thought the branding it can build a strong position on the product and make it become more unique ,sustainable and valued place in customer mind . A good brand strategy builds the customer loyalty which customer will continue purchase your product without reflect on the price. Fonterra are dividend their consumer business into three major regions which is Australia and New Zealand, Africa, Asia , Middle East and Latin America and it bring compound annual growth rate around 20% for the last four year By using the branding strategies it bring the growth at 4-5 % per annum in the Asia Middle East and the market price is worth NZD$12.5 billion .by the estimate the consumption of the Fonterra product will continuing raise due to Asia and Middle East are starting focus on their health and wellness. The most successful product brand strategy in the Asia and Middle East is Anlene. As we know the Anlene was create in year 1991 in Asia which are the high calcium milk to maintain the strength of the bone and prevent the osteoporosis, by the successful brand strategies today Anlene has bringing in over $320 million per year which represent almost one-fifth of the total sales revenue in the Asia country .Fonterra have invest around $2-3 million annually on bone health research and looking how to develop new format and formulation of the Anlene product. A research report from the International Osteoporosis Foundation showed that 286 million people in China will suffer from osteoporosis or low bone mass by 2020, and this figure may rise to 533 million by 2050.in this way they have launched the Anlene in china market. Instead of earning money they also conducted over 3 million bone scans in Asia country since 2006 beside that the also educated the consumer the risk of the osteoporosis and how to prevent it. For example they provided a free service to Malaysian consumer about the bone health check and beside that some of the consultant will give the advice on the consumer about what is going on and how to overcome the situation .for more information it can refer to appendix 1 Beside the milk powder of Anlene product, the Anlene Concentrate also have launched in the Asia country to target on different segmentation consumer .to build a good reputation of the Anlene product beside education some knowledge consumer and the boned check service they also hired Michelle Yeoh which is the action movie star in Asia and become spoke person of its product .it this way they manage to sell Anlene with the premium brand with is 30-50% expensive compare to the normal milk. (http://www.fonterra.com/wps/wcm/connect/418dd400440c080d84b29e9906727cef/240610%2B-%2BCEO%2BAndrew%2BFerrier%27s%2Baddress%2Bto%2BSIDE.pdf?MOD=AJPERES) (http://www.agro.uba.ar/agro/agroneg/pdf/strat_manag.pdf) à ¢Ã¢â€š ¬Ã‚ ¢ Ireland, R D, Hoskission, R E Hitt, MA 2009, The management of strategy concepts, 8th edn, South-Western Cengage Learning, USA à ¢Ã¢â€š ¬Ã‚ ¢ Singh, K, Pangarkar, N Heracleous, L 2010, Business strategy in Asia a case book, 3rd edn, Cengage Learning Asia, Singapor 3.0 Recommendation

Main purpose of job design

Main purpose of job design The main purpose of job design is for quality, speed, dependability, flexibility, cost, health and safety. This is the way to achieve greatness in conducting their working style and working techniques. Globalization is claimed that it will help in increasing the economic prosperity and opportunity in the developing the world. Globalization will help the company to gain more profit and a lot of advantages. Not only profit and advantages can be gain, globalization will also have its own disadvantages. Strategy formulations include the materials in making the product, where is the product being manufacture and who is producing the product. This is the strategy to improve the needs and quality for the customer. Borrowing technology from apparel manufacturers is also one of the company strategies. Process of manufacturing the product will also help in maintaining the quality; follow the newest technologies and trend. This will help in saving the cost and fulfil the customer needs. Shoe manufacturing processes and the key factors in the design of products and services for shoes are covered in this assignment. Shoe manufacturing sequence and the system of the manufacturing process will be discussed in detailed. The key factor of designs of shoes product which includes the shoe insole and sole portion and various type of service provided in shoe manufacturing including the after sales services are presented in this assignment. Besides, discussion and elaborating of quality planning and quality control processes in achieving high performance products and services for company. There are some different quality planning for the production and the quality control for New Balance such as applying some ISO quality standard as a prove for the company. ISO 9000 is the series of quality standard which reflecting the importance of quality and reliability. Quality and costing is related to each other, have a good quality product only can make the company financially strong but it also cannot be archived without the help from high technology apparel. The time was a profit for the company; we need high technology machineries to increase the amount of products with greater and stable quality. Last section of this assignment, describe about the profit that the company earned throughout the years since it was taken over by the current chairman, Mr. James S Davis, based on the industrial analysis did by a company called DATAMONITOR and the Factsheet announced by the company itself at financial year 2010. Then we have a topic about the result to the company after the company ventured to new market in Asia, and some about the payback from the investment on technological machineries that the company had spent on. Introduction What is a job design? Job design is the principles and techniques to the humanization of work, improve satisfaction, improve quality and reduce employee problems. It is a process to achieve satisfaction and trust from consumer. What is globalization? Globalization is mean of interaction and integration among the people, companies, and governments of different nations. It is also a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. What is strategy formulation? Strategy formulation is a way of a company plan on its business strategy. Strategy formulation is vital to the well-being of a company or organization. This strategy has effects on the company which will bring benefits. What is the process to meet the customer needs and quality? It is mean by how the shoes are being produced. This process of making the shoes will help to follow the modern trend of making the product and save cost. Furthermore, we have mention clearly about example of quality control of New Balance such as the step of the quality check from raw material until final product. The definition of Total Quality Control (TQC) or Total Quality Management (TQM) was stated clearly here. The machines purchase from New Balance to increase their efficiency and control quality of their shoes. This helps New Balance develop better designs, improve quality, and innovate their process capabilities. To produce a good quality and precision part in a huge number and reduce worker was an aim of all manufacturing field company, but by using handmade work is hard to do so. The only way can do is through high tech machine, by this way not only can come out a quality less reject part, on the other hand together reduce worker and make company earn in good selling and save a lot in labour cost. This will make the company finance to be strong and the enemy of manufacturing field factory was the part that been produce reject and return from their customer, this will make the company lost a lot in the costing. Let us see what technology can help in manufacturing. New Balance Athletic Shoe, Inc. which is a privately held company that founded and based in Massachusetts in USA performance in finance. The company was first setup in 1906 as the manufacturer of arch supports and orthopedic shoes. Now the company is famous as the manufactures for running, hiking, tennis, basketball, cross training shoes, and variety of athletic apparel. The company is being well known as the only shoe manufacturer still based in USA that offering its products in a wide range of width size with high quality of craftsmanship, which generate billion of sales annually. According to the latest factsheet dated 2010, the company is making massive earnings after the business owner taking over and decided to be more focus. The owner also invested lot of money to upgrade the manufacturing plant with newer technology machinery. Until now, the latest record show that there was a total of $2.32 billion USD sales made in the financial year 2009, whereby $1.07 billion USD of annua l sales in USA, $1.65 billion of annual sales worldwide. Discuss the job design and method of work organisation employed by New Balance Corporation for both local and global market to remain competitive. Critically derive the advantages and disadvantages of going global. Job design purpose and objective is for quality, speed, dependability, flexibility, cost, health and safety. Job design is also mean by application of working principles and techniques humanization of work. This is the way of conducting their working style and working techniques. The aim of job design is to make sure and improved the job satisfaction of the company. Improved quality of product is an objective of design. New Balance Corporation is a company that stress on quality. New Balance is an athletic shoes company that mainly focus on performance rather than the outlook and style. The aim of job design is also to raise the productivity levels, challenge and responsibility of ones work. Example is the New Balance shoes come in a wide range of widths and sizes. The quality can be achieve because New Balance Company have their philosophy which is listen, learn and refine. Another method that New Balance Company uses is well-trained workers. The well train workers are train to perform different jobs and tasks. New Balance Company is creative by adapting to new technologies to shoemaking. The company also constantly give training to their employee in teamwork and technical skills so they can work by sharing and helping each other on the task to make sure everything done on time. Dependability is a job design method that New Balance Company stresses on. New Balance Corporation is a company that design and manufacture their product in the United States. Example of dependability is buyer or consumer will look into where the product is manufacture because consumer depend and trust product that are import from countries such as United States, Germany, Japan and others. Reduce employee problem is also one of the main purpose of job design. Job design is an aimed to reduce or overcoming job dissatisfaction and employee bad behaviour arising. Dissatisfaction and employee bad behaviour arising will cause the employee to make mistake. Once the employee make mistake then accident will happen and that will cause health and safety. Running shoes of new balance company is made United States. This is the culture where it produces close to the customers and also allows quick turnarounds on new design and order fulfilment. This is the flexibility of the company to fulfil the desire of customer to purchase the product. One of the method that New Balance Corporation is they refuse to hire superstars to endorse its product and this will also help to cut a lot of cost. Borrowing technology from apparel manufacturers is also one of the company methods. This will help the company to save money and also following the modern trend. Globalisation is claimed that globalization increases the economic prosperity and opportunity in the developing world. There are advantages of globalisation and also disadvantages on going global. Advantages of globalisation Staying in one country is not a good method to remain competitive, so the New Balance Corporation chooses to launch a strategy to distribute all over the globe. To gain more profit is a company aims. Profit can be gain by expand their products to all over the globe. Expand the products to worldwide will be a global marketing advantage. From the global business, New Balance Company can be advertised on the internet and customers can easily view and purchase wherever and whenever they want. Advertising in the internet is a good advantage for the global business. Increased sales are for sure under the advertising in the internet. Under the global marketing, higher profits can be earn and achieve. New knowledge and experience is also an advantage under the internet global marketing. Another advantages going global is jobs been created. Once the company invested in another country, the job opportunity created. Once there are jobs for people, the economy will run smoothly. Wealth can be ob tained under the global marketing and productivity can growth wider. Wealth can be obtained means that human is going to gain money and an easier lifestyle. When going global, business will not only depend on the existing market but it will also have wide scale market. This means that new markets and producing dynamic sales can be obtain easily. The brand can consistency maintains their brand image. When the consistency in brand image is achieved, the brand will became famous and popular. This will also bring to higher sales and profit. Besides that, good ideas will be gain under going global. Good ideas can be gain from any individual in the globe and that can lead to a better design. This will help to identify what consumer needs and wants for their product. Going global will also establish good relationship between countries. After establish good relationship between countries, free trade between countries also increases. Furthermore, the flexibility of corporations to operate ac ross borders increases. This will ensure the company to run their business smoothly and without difficulties. Disadvantages of globalisation Global marketing also have its disadvantages which is the difference of consumer response can be unpredictable. Some of the product might be selling fast and out of stock. Differences of consumer likes will cause the product to pile up and cannot be sold. Product that cannot be sold might go for a very cheap price and that might cause losses to the company. The disadvantage on internet marketing is when their product is promoted in the internet; they will have to compete with different type of brand and product development. Besides that, the disadvantages also include differences in consumer patterns such as needs and wants that is influence by their regional. Differences in legal concerns may also create conflict to the home market. Language barrier is a disadvantage on going global because different countries have their own languages and they might not understand English. There are also additional costs to set a website on the internet. Besides that, advertising and maintaining the website will also cost another sum of money. Another disadvantage on going global is the company will faces a lot of challenges and competitive environment. The company will face challenges from other brand that offer cheaper and quality product. Cultural problems are also a disadvantage for the globalization. This will endanger the age old cultures which have been followed religiously all over the world. There are many countries which would never agree when it comes to culture or religion. The influence of local cultures and tradition will slowly start to wear down when the migration become easy. Globalization will also increase the spread of diseases. Disease can be spread because of the increase in flow people. This will cause human to vulnerable to health issues. Conclusion is there are advantages and disadvantages of going global. Done by: Lai Kiat Xiang Observe the strategy formulation and processes to continuously improve to meet the customer needs, and quality at lower cost. Shoe is a type of footwear that protects and supports the foot. Running shoes or athletic shoes is different from the ordinary shoes. The rubber on athletic shoes helps to cushion the hard surfaces when running. The construction of athletic shoes is important in order to prevent injuries and giving a good balancing and support while running. Running shoes can be divided into two main sections which is upper covers the top of the foot and the sole. The two main sections can be divided into three which is insole, midsole and outsole. The process of the running shoe is starting at the front on the upper part is feather line. This is where the edge is form. The edge is form where the toe guard tip meets the bottom of the shoe. A single piece of material that gives shape to a shoe and forms the toe box is call a vamp. The vamp has an attachments some sort of a throat which it contains the eyestay and lacing section. Under the lacing section is the tongue. The tongue protects the foot from direct contact with the laces. Reinforcements are attached to the vamp along the sides of the shoe. There are two types of reinforcements. First, it is the saddle. The saddle is when it is sewn on the outside of the back of the reinforcements. The second type of the reinforcements is called an arch bandage where if it is sewn on the inside. Collar is a part where it is further towards the back of the shoe. Collar usually has an Achilles tendon protector at the top back of the shoe. The foxing shapes the rear end of the shoe and underneath there is a plastic cup which it is use to support the heel. The plastic cup which supports the heel is called the heel counter. Figure 1 Figure 1 above is showing how shoe is made. The first step as we can see from the diagram above is involving the die cutting. The shoe parts are cut in a cookie cutter fashion. The pieces that are cut will form the upper part of the shoe. The pieces will be stitched or cemented together and the upper part will be form. After the pieces were cemented, the upper will looks like a round hat rather than a shoe. This extra material is called the lasting margin. After that, lace holes will be punched out. After that, a last which is a plastic mould is use to fit the upper before the upper is cement with the insole board. The upper has to heat before fit on to a last. It is then both the upper and insole board is press together to get bond. Midsole and outsole is then cemented on to the upper. Before midsole and outsole is cemented to the upper, both of the outsole and midsole will have to be align and bond together. When the cement is cool, the shoe is removed from the last. The midsole is designed to absorb the shock and the wedge is designed to supports the heel. The insole which is arch support is located inside the shoe. Below is a sample of a completed running shoe. One of the strategies to improve to meet the customer needs and quality is by manufacturing some of its product in America. When the product is manufacture in America, trust of buyers will increase. The trust of buyers increase because America product is a trusted product compare to other countries. Example is whenever a product is being manufacture in China, consumer and buyers will think twice before purchasing the product. Besides that, New Balance has their own strategy formulation on their product which is their own technical innovations. The technical innovation is such as a blend of gels inserts, heel counters and a greater selection of sizes. Some people might have a larger foot and New Balance Company is producing a greater selection size of shoes. Quality control is one of the strategies by the New Balance Company. New Balance Company is producing a good quality of shoes because of the ingredients and materials in making their shoes. The ingredient is such as gel, air or plastic on making the midsoles. The inner side of the midsole is often made of firm material such as polyurethane (PU), ethylene vinyl acetate (EVA) or combination of them. This material is use in order to prevent overpronation of the foot. Polyurethane is used in the heel area and a very thin layer of ethylene vinyl acetate is used in the insole. Besides that, New Balance Company also uses investing in other countries as their strategy to get their customer needs. Once the company invest in that country, the customer will get the product easily and the goods dont have to be import from America. This will also cut the cost on the product. Borrowing technology from apparel manufacturers is also one of the company strategies to cut cost and still following the modern trend. Done by: Lai Kiat Xiang 3. Critically observe the shoe manufacturing processes and examines the key factors in the designs of products and services. In their manufacturing process line, its not only about manpower but also with the robotic machines. It is why New Balance also brings in the new technology from apparel manufacturers and spends $100,000 for every see-and- sews machines which able to produce a pair of shoes in 24minute compare with 3 hours use if in China and get high productivity with efficiency speed. Shoe manufacturing sequence Design for shoe sole n upper and provide material detail Create shoe sole mould to make exclusive sole and insole. Make a sample or prototype for testing. Have implemented on the product. Final products come out. Start production for shoe sole and insole. Cutting, sewing, lasting and finishing Quality control and delivery order. How to satisfy customizations on shoe manufacturing with systematically? A. Satisfaction fitting impact Materials: The Main reason should concern for good quality shoe is the shoe material. The relationship between suppliers and manufacturers must be good and both must be able to solve problems together and suppliers must fast react on the specific material orders. B1. Outlook customization The customization of shoes may include the upper material colours and outlook designs. If a manufacturing systems have a high capability to satisfy aesthetic customization that allow buyer choose their shoes colours, it must be a great set of coloured materials or the material can be dye the upper portion. B2. Shoe accessories Shoe accessories such as bows, decoration or any particular lace may add into the shoes to add to the standard station. C1. The materials are needed to satisfy transpiration or thermal request with much kind of different materials. C2. Due to various types of materials, technical could needs for particular stitching technique different by the standard way for the leather. It may needs a flexible stitching station which able to adapt to different typology. C3. If the insole production system have the capability to satisfy shock absorption of the production customization of the sole, it may needs more complex and right technique to realize a various set of shock absorption. State of the art technology is used to identify the right shape of human feet to custom orthotic foot bed. A typical scan of human leg will be tested and this let the manufacturer able to make the most comfortable orthotic insole. After inspected, cleaned, dressed and polished, heel socks, laces and the brand label will be added, then the QC (quality checked) will be approved and the shoes will be packed and ready to sell. After sales services also available from some shoes company. Method for doing an orthopaedic shoe lift Split the sole in half, add the material build up to your specified height, taper off correctly at the front, and then reattach the bottom of your sole. This method ensures an aesthetically pleasing look as well as being very comfortable and unnoticeable. Add a shoe lift and build up to the full length of the sole. This is the correct way to do it and all of shoe lifts are done this way unless specified otherwise. Why need a build up of the sole, but not just use an insole Insoles are bad for foot when used for this purpose and can cause problems in back. The correct and safe way is to have a build up. How high of a shoe lift can build? There is corrected leg length discrepancies for patients as high as 6 inches and are not limited to that. Any shoe can add shoe lift? Any shoe with a full length concrete sole will take to a shoe lift nicely, and shoe manufacturer work with running shoes, dress shoes, work and hiking boots, and golf shoes too. Charge for shoe lifts? Cost starts at $39.99 for a half inch and an additional $14.99 for every quarter inch thereafter. There are additional charges for harder to split soles like the ones in boots and golf shoes. Done by: Wong Yng Chung 4. Discuss and elaborate the necessity of quality planning and quality control processes in achieving high performance products and services for the company. Quality control for New Balance can be: Dimensions of sole and insole Dimensions of various shoe size Colour, pattern and designs Material of the shoe Elasticity/durability of the shoe Life time of the shoe Quality check from professional Remain the shoes quality for different production line Reliability of shoes box packaging for delivery. Solid, long term partnership with trustable suppliers. Ensuring in-store safety and quality New technology to improve the effectiveness and quality of production. Total Quality Control (TQC) or Total Quality Management (TQM) refers to quality control beyond the sustaining of quality. These two concepts may lead to continual increases in quality. Dr. Kaoru Ishikawa, recipient of many awards, including the Deming Prize, Total Quality Control as a system of inventing and implementing quality technologies into various departments of a company engineering, production, sales and service all this is purposely for satisfying customers. He stated that viewed chronologically, TQC is only the first stage of Companywide Quality Control (CWQC). CWQC incorporates quality function deployment (QFD), where as TQC does not. QFD is a design procedure that introduces quality control in product development. It is a formal mechanism that guarantees the comment of the customer is heard throughout all the phases of manufacturing a product or providing a service. As Dale Besterfield stated in his book Quality Control, the deliverance of a quality product or service requires the responsible integration of all the firms departments such as marketing, product engineering, purchasing, manufacturing engineering, manufacturing, and inspection and testing, packaging and shipping, and customer service. TQC is far more than sustaining quality, as it may include control systems, employee relations and organizational behaviour, statistical process control, and Japanese management techniques. Quality control techniques and standards, affecting almost all aspects of business, have now been adopted at national and international levels. The Malcolm Baldrige National Quality Award exemplifies the former. President Ronald Reagan signed the Malcolm Baldrige National Quality Improvement Act on 20th of August 1987. The act was the culmination of a national campaign to improve the quality of goods and services in the United States. The award represents the highest level of recognition that an American company can receive. On an international level, the ISO 9000 series of quality standards was first published in 1987. These standards reflect the importance of quality and reliability as critical factors for achieving and maintaining worldwide competitive advantage. Another example is the international environment management standard, ISO 14001. Companies worldwide use this standard as a blueprint to develop and refine internal environmental management systems. New Balance purchased 70units see-and- sew machines in 1 short and set up on machine shops to grind the 30 templates need for a typical shoe. Each set of templates took about 1 week, but they manage to make their workers to produce a pair of shoes in 24minute compare with 3 hours use if in China and get high productivity with efficient speed. High salary paid for their workers such as well-trained employees are able to make $14 an hour. All of these well-trained employees can be perform well and they are performing half a dozen different jobs and switching task every few minute. The efficiency of the manufacturing has been increase. Every person of them able to operate computerised sewing equipment and automated stitches that of 20 peoples work. New balance corporate also remain competitive at home by introduce new technologies to shoe making creatively. Constantly training is also provided for their employees either in teamwork or technical skills to improve their employees quality. Firstly, employees start with 22hours of classroom training on teamwork and get constant training on the factory floor. Then they will work in teams of five or six, sharing task and helping one another until make sure everything get done. In this teamwork function, many ideals about improvement of process will be come from shop floor workers. In their manufacturing process line, its not only about manpower but also with the robotic machines. They also bring in the new technology from apparel manufacturers and spend $100,000 for every see-and- sew machines. The most impressive part is they purchased 70units in 1 time and set up on machine shops to grind the 30 templates need for a typical shoe. Each set of templates took about 1 week, but they manage to make their workers to produce a pair of shoes in 24minute compare with 3 hours use if in China. Labour cost per shoe is $4 hour in Maine compare to $1.30 in China, it is a range of $2.70 for every shoe which is 4percent more from the selling price of $70. But good salary paid is worth-able when they get high productivity with efficient speed. Investment time on the manufacturing process helps New Balance develop better designs, improve quality, and innovate their process capabilities. By the way, if it outsourced all of its production then this would cause the company to suffer lost financially. Done by: Wong Yng Chung 5. Carefully observe how the reduced-quality product would affect the company financially. Discuss the financial analysis to justify the use of technology in the shoe manufacturing operation. For a company the quality of product is very important to convince customer to trust and buy their product, it totally affect companies financial once the product that produce rejected and returned. The cost of transport will be charge to company for the return part. Besides that, normally reject part will cause line down if the part very urgent to support to the end customer, means that the cost will to be charge to our company account due to our reject part. When the reject part was returned, company have to arrange manpower to rework for the part and extra costing will be count for the rework base on how many hours needed to complete the reject batch. If unfortunately the reject bath cannot rework it have to be scrap, means that extra issue cost will be needed for the raw material besides that production have to be rearrange to rebuild for the reject quantity. Once reject part was found internally, the machine have to be stop and realignment or resetting to make sure come out part will be in good quality. On the other hand, some time it will take one or half day to refitting or resetting regarding to the reject defect, This will cause no output for the day and fail the shipment for that day. Delay shipment also will cause penalty by quantity not enough for the customer. To come out a quality product for new balance, a modular manufacturing (teamwork) system were introduced. With this system it come out a better quality control and more efficient production, this system was improved with associates trained on more than one job in the factory, which meant a more varied days work and tighter quality control for the product. For the year 1991, production only can run around 2000 3000 pairs of shoes in a week and steadily increased to 4771 pairs of shoes per week by 1993 and continued increased to 7403 pairs of shoes by year 1996 and to 9787 pairs of shoes by 1998. The factory and finally broke the one million pair of shoes per year barrier in 2003. [11] To produce big amount quantity and quality of shoes in a day, we need help from the technology and impossible to produce big amount and precision part by human. For example by using the inversion type rubber shoe-mould finalizing machine, it was a professional shoe making equipment which integrates the vulcanization, stitching and finalizing all process can be done by it and was fully function of automatic program control can save a lot of labour cost. Besides that it was a control by hydraulic pressure system it can keep constant the temperature, deflate, draw pattern and also control time automatically. The adoption of the mechanical connecting bar structure was to ensure no split of mould and degumming phenomenon during the vulcanizing process. Because of the machine is inversion type, the shoes surface can be kept clean, high quality jackboot and other military shoes also can be produce by it. This is the advantage of the technology and help company to save lots of labour cost an d produce quality product and some of the process is impossible can be reach by human being.[12] Besides that in the shoes mould technology with a precision mould it can produce two pair of shoes in a short cycle time compare with a handmade, presently of new moulding technology which can reduce of the cycle time and increase in a number of cavities from two to four, this had been shown that the production efficiency has been improved with the help of the new improved shoes mould design for longer mould life and better quality parts, besides that by improved the cooling system of the mould gate and separate core inserts it used to improve ventilation, reduced thickness of the part without any compromise on quality. By this new technology it allow the significant cost saving intelligence, process innovation, increase productivity, the preventive maintenance qualit