Global Financial Corporation Essay

Global Financial Corporation (GF) a subsidiary of Global Equipment Company (GEC) is tasked with handling financing for those customers who wish to purchase GEC heavy equipment. Currently GF only processes 51% of the leases within the â€Å"10 days or less† time frame, with some loans taking up above 41 days. Ms. Rodriguez, the Vice President of GF has been directed to decrease loan processing time to 10 days or less with the current staff she has. The current structure of the analysis and evaluation stage does not maximize staff time effectively and as a consequence creates a bottleneck in the process. We recommend switching to a case manager structure. lLan applications can be processed and completed in approximately 3 days. This would allow for an increase in volume to 255 without adding staff (assuming 60% are remain new applications), which is a 16.9% increase, exceeding the 10% anticipated application increase. Background Global Financial Corporation (GF) a subsidiary of Global Equipment Company (GEC) is tasked with handling financing for those customers who wish to purchase GEC heavy equipment. Due to the expense of the equipment many customers chose to finance the purchase with a lease agreement. Currently these loans are processed at GF Bakersfield location, which employs 14 people. A competitor of GEC has promised processing of financing in â€Å"10 days or less†. Currently GF only processes 51% of the leases within the â€Å"10 days or less† time frame, with some loans taking up above 41 days. Ms. Rodriguez, the Vice President of GF has been directed to decrease loan processing time with the current staff she has. Problems The Bakersfield office is operating at only 86% of capacity utilizing 2990.5 hours of processing time (full capacity 3485 hours). In October they processed 218 applications, 89 were standards and 129 were News. The analysis by region shows that Region 1 is handling the most applications at 78 (52 new, highest number among the different regions), averaging 126.7 hours which, equates to 20.1 days. Region 2 is only handling a total of 66 applications (35 new) with an average processing time of 5.7 days, and Region 3 handling 74 applications (42 new), averaging 8.7 days. The Northeast office handles about 35% more applications with essentially the same staff. Only 51% of the applications are processed within the 10 day or less requirement. Analysis of the Current Processing Steps 1. Analysis and evaluation stage is a single channel, interest rate multi channel, loan terms single channel, and final issuing a multichannel. (Exhibit A)The current structure of the analysis and evaluation stage does not maximize staff time effectively and as a consequence creates a bottleneck in the process. With the single channel structure loan applications are unevenly distributed among teams and create higher idle time for teams with less volume of loan applications to process. Utilization among regions varies greatly between 73% – 95%. The following observation of the current structure was achieved using the MMK model (See exhibit B): * Expected wait time in the system for an application in Region 1 is approximately 37 days, with actual processing time of 14.10 hours. This is where the bottleneck occurs as it takes the evaluation team over 16 days out of the 37 to perform the review of 78 applications. * Expected wait time in the system for an application in Region 2 is approximately 11 days, with an actual processing time of 13.40 hours. Of the three Regions, Region 2 processed the least applications of 66 during the quarter being reviewed. With a utilization rate of 73%, Region 2 experienced the most idle time in the evaluation process. * Expected wait time in the system for an application in Region 3 was approximately 15 days, with an actual processing time of 13.56 hours. With utilization rate of 84%, this Region has the ability to handle an increase in applications. * Each region utilized over ten days of average time in system and showed bottlenecks. 2.  Interest rate stage is a multi channel process and is working effectively. Applications are processed quickly and are usually turned over to the next step within 30 minutes. The utilization rate is consistent at 64%, which means that this staff member can continue to devote only half of his time to this task. 3.  Loan terms stage is a single channel and has similar issues as the analysis and evaluation department. It creates bottleneck and work is unevenly distributed. 4. Final issuing stage is an effective multichannel process with a consistently high utilization percentage. Each application takes less than 4 hours to process and utilizes time consistently at 93% of capacity. Alternatives Redistribute the staff to eliminate the bottlenecks in the process. Automate the input of information into a computer database at the sales level eliminating duplicate entry. * Generic queue would decrease processing time to 9 days. Evaluation will drastically reduce to 2 days of processing, increasing utilization and reducing idle time. Active time in the system will be reduced to 13.72 hours. Change all stages to a multiple, multiphase channel (Exhibit C &D). There would still bottleneck from the evaluation stage. * Case manager would increase active time of application to 18.5 hours; however, significantly reduce queuing time to approximately 3 days. This is assuming there are no teams during the evaluation stage and that the average time would double to 9.5 hours, which may not be the case. Change to multiple channel – assignment – multiphase. (Exhibit E &F) Eliminate bottleneck, service rate of 22.2 per FTE, per quarter. Recommendation We recommend switching to a case manager structure. This would mean that one person will be responsible for the completion of a loan application (Exhibit E). This will provide for most efficient way to minimize idle time and maximize utilization rate. Loan applications can be processed and completed in approximately 3 days. This would allow for an increase in volume to 255 without adding staff (assuming 60% are remain new applications), which is a 16.9% increase, exceeding the 10% anticipated application increase.

Internal vs External Change Agent Essay

One of the example that he did was â€Å"In his early years, he helped GE Plastics explode from a $28 million after-thought into a billion dollar business. (Answer) Promoting personally from the internal organisation will have its positive effects, as they will have known the organisation structure, culture and also the employees’ working attitudes and behaviour towards their job and the organisation. And will have the awareness of what is the current problem of organisation is facing and the cause of it. Which can be shown by Jack Welch decided to quit due to â€Å"frustrated by the organisation’s bureaucracy†¦Ã¢â‚¬  (Answer). This could save the time of finding out of the current practices, culture and procedures of the organisation. And know which of the manager of the organisation can entrust. This provides a morale boast to the front line employee who is suffering from the current situation; a mutual understanding will be form between the employees and the new CEO as they might have worked together before. Knowing the structure of the organisation inside out, will let the new CEO to know which part of the structure is in flaw and require fixing whether it is the corporate between two departments of within the department itself or even the flow of process a project or working procedure. With the time spent in the organisation, the CEO will have known the culture of it like; knowing the time of employee’s lunch hour and tea break sessions. He will be able to make necessary changes to it to boast the productive of the worker. And knowing the employees’ working attitudes caused by the culture, for example a manager picking on every small mistake and carry heavy punishment will cause the employee to work in fear and lower morale which lead to lower productive. With the knowledge of problems that is causing the organisation to function poorly, the internal promoted CEO, he will know who he can entrust to do fix the problem and knowing which products/services that organisation manufactured/provided are with flaws. As an insider of the organisation, the CEO will have known that the weakness of the product and will able to cut off the production and switch the organisation focus on other type of product. Which is something, as a CEO hired from other place, cannot carry such actions. As this is will because chaos will break out in the organisation, as this will give a feeling or message to the employee that they will lose the sense of belonging to the work as they will feel that they don’t have the skill or knowledge to cope with it. As for the promoted CEO from within might have problem to create a revolution for the organisation as he might have a fix mind set of following the currents culture and structure, which will only make the situation more worse as the employee will not able to see any changes in their work regards for better or worse. As CEO is hired from other organisation, this will bring in a different view and will able to bring in other organisation strengths to help improve the current situation of the organisation. The new CEO will not bind down with the relationship of the current staff and thus he will not hesitate to replace the current staff with the more capable new staff. This will give a clear message to the current staff to change their working attitude towards their job. With new top management, this will change the culture of the organisation might have a positive effect as changes is for the good. However, by bringing new culture or replacing with new staff, this might have a side effect on the organisation, as the current staff might felt left out and the suddenly change to culture can create new problem as the current staff might not able to cope with it. An internal leadership will prove a better solution for the organisation that is going for a change. As this shorten the process of understanding the organisation and pointing out problem faster than a CEO hired from other organisation. And also they are more accurately to identifying the correct person with their hearing from others. With the case of Jack Welch, he was able to turn one of the GE’s business from million to billion worth. â€Å"An internal placement could result in multiple inside promotions. † (Sullivan 1999) Since there is an open slot for promotion, as people are moving up, this can serve as a reason for people to show what they can do for the organisation. Thus improve the organisation productive.

Leadership in ethics Essay Example | Topics and Well Written Essays - 250 words

Leadership in ethics - Essay Example The only area where ethics and research goes well is in areas where the people involved are professional and consequently have an obligation while carrying out their activities. This change in genes is known as gene-environment contact and is very critical in leadership determination. There are areas where ethics may go wrong or fail to present the results previously expected in a research and the researchers are forced to lie. One of these areas is in the field of science. The field is quite challenging and this is because of the many processes involved. When these scientists find out that they do not have the ability to go through all the processes they end up presenting fraud information that is a non-ethical activity. The corruption is an identification of a genotype that does not have leadership traits (Neve, 2013). Another area where the ethics may fail in research is in the field of catering. Catering is critical in every society and consequently people get to live better lives. Ethics fails in this environment and this is because some people fail to treat their customers in a noble

CLINIQUE Research Paper Example | Topics and Well Written Essays - 1000 words

CLINIQUE - Research Paper Example This is imperative for effective advertising communicationii. The medium that has been used for the Clinique advert is print medium - Cosmopolitan magazine. Cosmopolitan is a popular magazine for women between the ages of 18 to 45. They mainly feature topics such as self grooming, sex, relationships and celebrity gossip. This is an ideal medium for conveying Cliniques message as Cosmopolitan is widely read by the consumer group that Clinique wants to target. This print media is also suitable for the target audience because women who have busy lifestyles due to work, family or relationships tend to find relief from browsing through magazines in search of solutions to their lifes little problems and issues. It is the time for thinking, and planning. By including an advert in such a magazine, Clinique catches the attention of the thinking reader, hence the long and explanatory copy. In advertising, understanding the need of the target audience is important to position the product and its message.iii The target audience seems to be older women between the age bracket of 30 years and 45 years who are undergoing the aging process and in need of staying young. Since they lead a busy life perhaps working or caring for a busy family, they look for a daily skin care solution which is easy to use yet achieve the desired effect of having "newborn skin, head to toe". Cliniques positioning is to identify Turnaround attributes with the target audiences desire to "improve skin of all types and tones". Since no price is mentioned, the researcher assumes that the product is expensive. Instead, Clinique wants to focus on what women want most out of a daily cream. They want to position their Turnaround cream as the ultimate solution for women who want to keep their skin "healthy looking", make them feel "young" and look "radiant" upon application. The objectives of the campaign are to extend its Turnaround brand, and make Clinique the authority

Low Income Housing in the Kingdom of Saudi Arabia Dissertation

Low Income Housing in the Kingdom of Saudi Arabia - Dissertation Example Objectives 1- To study the theory of post-occupancy evaluation, its emergence, and its importance. 2- Understanding the importance of POE for creating better houses for low income people. 3- To critically evaluate literature about international housing policies and compare them to housing policies in Saudi Arabia. 4- To assess a case study by using the post-occupancy evaluation of the: a- Functional aspect b- Social views c- Technical factors 5- Evaluate building performance taking account the feed back from the residents. Research Questions: To which extend are the users satisfied with current housing design? What is post-occupancy evaluation? Why is it important? How to apply it? How did it emerge? What are the international housing policies, and Saudi housing policies? What are the differences? How to assess a case study by using POE for Functional aspect, Social views and Technical factors? How to evaluate building performance taking account resident's feedback fr om? Research methodology Review literature: Define both the area and the nature of POE that enhances the understanding of the concept, the scope and the process of POE. Setting Aims and objectives. Develop questions. Select research respondents. Implementing the survey. Analyzing the data collected. Structure of the research Chapter 2: Introduction Aims Research question Objectives Methodology Chapter 2: what does POE mean? What is POE ? History and background of POE Uses of POE Process of POE Benefits of POE Chapter 3: International housing policies Housing policies in Saudi Arabia Housing policies in Saudi Arabia for low-income Chapter 4: General information of Saudi Arabia. General information of case study.... Low income housing is a main requirement of many developed and developing countries, conducting necessary studies about it and implementing policies in order to provide economical solutions to provide appropriate housing to millions of poor around the world Different organizations world wide have played an active role in the development of housing models for low income housing some of them which have succeeded in providing appropriate housing to low income people. In recent years the government of Saudi Arabia has started providing houses to needing families so a number of housing projects were built in different parts of the country. And Algazala is one of these projects provided for low income people and in this research Algazala project will be the case study which will be evaluated using POE (Post-occupancy evaluation), by implementing a questionnaire on the residents of Algazala project to identify the advantages and disadvantages of these houses. Algazala which is located in the region of Hael is one of the of many low income housing projects that the government of Saudi Arabia has built for needing people it was built in 2007 and it contains 254 housing units and two schools, two mosqes, a health centre and a community centre . History and Background of Post Occupancy Evaluation From the past few years, the area that gained more attention of business industry experts and researchers is about identifying the ways in which the building attributes affect its users.

Tourism Master Assignment Example | Topics and Well Written Essays - 3000 words

Tourism Master - Assignment Example Like in any other country, heritage tourism in USA is advancing in huge strides for the last one or two decades now, and Government has realised the importance of promoting tourism in rural America, and here, heritage and cultural tourism have been given more importance. Tourism has become today, one of the biggest industries in the world and has proved beneficial in many ways. USA has decided to showcase its immensely rich heritage, mainly of Native Americans, less of immigrants who occupy the whole of America today. Heritage tourism also covers historical conflicts, fight for freedom, wars for freedom, fight for civil rights and the resulting battles that have left inerasable footprints on sand of time. Today's tourism can never exist without preservation, which has become the most pertinent issue all over the planet. USA, a huge country with unlimited possibilities, is today encouraging heritage tourism while carefully preserving its own innumerable heritage sites, mainly that of Native Indians.Eco Tourism and Sustainable Tourism, though almost identical, are not the same. Eco Tourism is more about the nature, its preservation, whereas sustainable tourism is about nature, but about the living beings on the particular land and is of the opinion that tourism should help the locals, while retaining the planet's pristine garb as clean as possible. On 7th October 2003, WITC came out with the Blue print of New Tourism. "The World Travel & Tourism Council (WTTC) today revealed its Blueprint for New Tourism, which issues a call to action for both government and the industry to make several long-term commitments to ensure the prosperity of Travel & Tourism - one of the world's largest industries, responsible for 200m jobs and over 10% of global GDP1". In heritage tours, areas with extreme environmental threat have to be avoided. Sustainable tourism argues that local community should be financially benefited, so that, they take the initiative of preserving the environmental sensitivities and fragile areas of biodiversities. It has to be seen that economic requirement should not override environmental concerns. Proper guidelines have to be formed on how the nature parks and heritage sites and wildlife sanctuaries have to be preserved. American tourism calls for awakening our senses to natural beauty and national heritage. Amazing heritage sites also offer well-planned, thrilling holidays, because for some tourists, unmixed heritage tours could be dull and uneventful. Wildlife has firmly become part of all tourisms including heritage and cultural tourisms. CASE STUDY: TOURISM IN UTAH, ITS HISTORY AND ATTRACTIONS: Utah, one of the prominent states in USA has been chosen for the case study, as this State is perhaps the best State capable of showing the most vivid kaleidoscope of America's heritage. The State is divided into: Mining County, Carbon/Emery County, Salt Lake County, Summit County, Tooele County, Utah County, Central Utah, Eastern Utah, Southern Utah, mainly depending on its vibrant and violent background. http://history.utah.gov/mining_heritage_alliance/miningmap.html Utah has a population density of 21 people per square mile, (increased at the rate of 15% since 1982), and with a developed land increase of 24% between 1982 and 19922 and this has resulted in 30% loss of wetlands since 1780 and it is the home of 38 threatened and endangered species. For outdoor enthusiasts there is no better place than Utah to ski or snowboard, mountain biking or white water rafting, or to visit the legendary Old West, with all its hidden and trapped glories and fables, who, unfortunately

Code switching project Essay Example | Topics and Well Written Essays - 2250 words

Code switching project - Essay Example 3). In this view, the determination of the social motivations for a language alternation becomes important. This paper looks at the social motivations for code switching I terms of the various applications in social, discourse and identity expression situations. This follows an interview analysis that seeks to determine the patterns for code switching, as well as the attitudes evident from such changes. According to Buchholtz and Hall (2005), socio-cultural linguistics arises as an important subject that looks at the broad interdisciplinary area involving the integration of culture, society and language (Nilep 2006, p. 3). The utilization of code switching arises as a key determinant of bilingual and multilingual speakers. The availability of language resources including the knowledge of two or more languages enables different individuals to depict instances of language alternations. Code switching refers to the application of two or more languages between various speakers during a given speech or conversation (Lowi 2005, p. 1). In this case, the concept stands to be essential in such practices involving bilingual or multilingual speakers. This translates to the utilization of code switching as a means for conversation, and as an approach towards the establishment, maintenance and description of existing boundaries due to ethnicity (Fong 2011, p. 23). Additionally, the idea arises as an important tool for symbolizing relevant features of background in speakers. This provides multilingual speakers with an opportunity of expressing their own identities, thus, becoming an effective social process (Lowi 2005, p. 1). In providing for a social context, code switching allows individuals to explore their identities and ethnic backgrounds. This arises due to the various communicative functions depicted with the utilization of code switching (Shin 2010, p.94). The use of code switching becomes essential in ensuring that communication between two or more

Post War Australian Art Essay Example | Topics and Well Written Essays - 1000 words

Post War Australian Art - Essay Example Imants  Tillers' greatest motivation is the production of pieces of artwork that show concerns regarding locality and place while also making evocations of the Australian landscape. Between 1974 and 1975, Imants produced Conversations with the bride. The piece of art typifies the installation media category. The installation provides a notable dialogue between Imants’ painting and Marcel Duchamp’s well-known painting entitled The bride stripped bare by her bachelors, even. Duchamp’s painting is also referred to as The large glass. Imants’ Conversations with the bride is a compilation of at least 112 miniature photographs and paintings (Hart & Tillers 2006, p. 9). These photos and paintings are set on multiple aluminum tripods with every image in the compilation being appropriated from The large glass by Duchamp.In addition, Conversations with the bride also appropriates images of Hans Heysen’s watercolor Summer of 1909, which had a characteristic Australian landscape, consisting particularly of gum and eucalyptus trees. This calls to mind the magnificent forces of nature that is similar to the 19th century Romantic landscapes. The large glass and Summer were painted approximately the same time, and as a consequence, Imants perceives them as equally representative of Australian cultural values (Stephen 2003, p. 16). These art pieces were sympathetic to Imants’ views at the time, especially with regard to Imants’ feelings regarding the element of the fourth dimension, which is also evident in Duchamp’s artwork. Imants researches a lot of sources, collecting necessary documentation vital for the compilation of the images inherent in the Conversations with the bride compilation. Conversations with the bride represent the painter’s post-modern strategy, which encompasses approaches such as intertextuality. Here, Imants’ artistic work elucidates the link between the artwork, the viewer and the ar tist. This relationship is exemplified through the use of layering whereby contemporary and historical references from both literature and art are comingled.  

Chinese americans faceing discrimination in work and trade Essay

Chinese americans faceing discrimination in work and trade - Essay Example The first case was a judicial writ to the Supreme Court of the State of California while the second case was on appeal from the Circuit Court of the United States for that district. The sheriff stated that the petitioner Yick Wo was found guilty by the Police Judges Court, No. 2 of not obeying the ordinances of the board of supervisors of that county and were rightly fined $10 and in case of non-payment, imprisonment for as many days as the fine amount in dollars according to the law. Now, let’s have a look at the ordinances. An order No. 1569 was passed on May 26, 1880, dictating the type of buildings where laundering activities may be carried. Section 1declared it mandatory to have the permission of the board of supervisors to run a laundry, exempting only brick and stone buildings from its preview. Section 2 declared it illegal to construct scaffolding for any purpose other than specified without taking permission from the supervisors. Further Section 3 of the Order provided with a punishment of one thousand dollars or six months jail or both to those found guilty of committing the offence. Another Order was passed on July 28,1880 bearing No. 1587. Sec. 68 of this Order declared it illegal to run laundry business within corporate limits of San Francisco without permission of board of supervisors except in a building made of brick and mortar. It was on record that the petitioner was a Chinese, living in California for the last twenty-two years. He had a license from the board of fire wardens. All concerned departments checked his premises OK. His license had run out on time and had to be renewed, permission of which was denied. There were at that time 320 laundries in the city of San Francisco, out of which 240 belonged to Chinese people. It was found that others were not prosecuted; only Chinese were discriminated to oust them from their dwellings where they were residing for the last many-many years and paying all taxes. This attitude was

Summary of two articles Essay Example | Topics and Well Written Essays - 250 words

Summary of two articles - Essay Example tin also acknowledges the Philippines’ move to draft and enact environmental laws but it is of concern whether the implementation would be successful. The United States affirmed its commitment to environmental conservation with the planned installation of windmills that is more preferable than solar power at the Adirondack Park. In her article â€Å"Will Warmer Soil Be as Fertile†, Lance Frazer (2009) explains the role played by soil in organic matter decomposition. She also explains how heating of the atmosphere hastens plant photosynthesis. Frazer (2009) further discusses studies by Myrna Simpson in a report â€Å"Nature Geoscience† November 2nd 2008 that outlines the anticipated effects of global warming in causing unpredictable patterns of carbon circulation in the environment. A study by the team showed increased microorganisms decomposition activity in warmer conditions that result in high release of CO2 into the atmosphere. Frazer (2009) highlights concerns by Howard Epstein an associate environmentalist on drawing conclusions based on the study. Epstein also questioned sustainability of the findings. Simpson (2008) concludes by pointing out the increased CO2 levels with increased degradation. Frazer recommends more study on soil with a keen interests on the effects of the molecular levels on the

Just Another Lionel Messi Essay Example for Free

Just Another Lionel Messi Essay Standing at just over 5 feet 6 inches tall , and with an age of just 24 , Lionel Messi is touted to be one of the greatest players of all time , maybe even the greatest . Maradonna famously termed him his ‘successor’ , and although Pele finds reasons not to call him the greatest of all time , its probably ‘cause he’d rather not give up his title to someone else. Human nature, you could say,but well,he’s going to have to agree sooner or later. Cristiano Ronaldo has it all. He has the stats, he has the ability, he has the strength. There is no doubt in the fact that Cristiano Ronaldo has been grossly underestimated when it comes to comparisons with Messi. Messi cant head the ball like Ronaldo. Ronaldo can probably do everything that Messi can with his feet. But then what is it that Messi has that attracts every single person to the beautiful game? The fact that he lives for the game. Once he gets the ball , he will not leave it until he has done justice to his ability with the ball. All incredibly skilful players, Ronaldo , Nani , you name them, dive at the first opportunity presented to them . Lionel Messi never dives. If you’re wondering what I mean by ‘dive’, and I’m assuming you probably are , it is the practice of falling to the ground ,pretending to be injured, appealing for a foul, and then ,once the purpose is fulfilled, ending up running around the field without any hint of injury. Lionel Messi hardly ever does it . In fact he never does it . Messi is humble, probably the humblest ‘great’ of all time . After scoring seven goals in the past week, and being on the verge of becoming the all-time highest goalscorer of Barcelona, he still credits the club’s run of success,as well as his , to coach Pep Guardiola. Lionel Messi never dives. He plays fair. And when he does,he makes sure we all know , that he was born to play this game .

Risk Management Group Of Easyjet Tourism Essay

Risk Management Group Of Easyjet Tourism Essay The methodology implemented to identify the risks that face EasyJet was constructed through the use of a SWOT Analysis. Taking into consideration of all the conceivable risks would be an inefficient process, therefore only a few risks of significant nature have been recognised which may affect EasyJet in the foreseeable future. The launch of a new route from Manchester to Palma presents both opportunities and hazards. Conclusive data provided by CAA presents an outcome not anticipated a decline in passenger numbers at Manchester Airport, and a significant drop in the number of airlines flying to this destination. A recent unfolding of a crisis due to poor management at head office, indicates a growing concern in terms of crew shortages. This will have longer term repercussions if the issue is not resolved. The problem might suffice the migration of customer to rival airlines, due to the lack of customer services. A high risk factor for EasyJet lies with the unpredictable and worsening climate of the UK, possibly disrupting air-traffic particularly during the winter season. Given the complete closure of UK airspace during the volcanic eruption, EasyJets total size of the exposure, as a result of disruption is  £5 million. With no current Government plans to invest in new equipment to keep the transport infrastructure open, EasyJet face liability for the costs, given that no insurance policy is available for natural disasters and the Government reluctant to provide some levels of compensation. Contents Introduction  Ã¢â‚¬Ëœ This report has been commissioned for the EasyJet risk management group to identify and critically analyse risks that may face the organisation in the future. It is of significant importance that identified risks may present opportunities for growth, in addition to threats. As per this report, only the most significant risks will be identified, through the use of appropriate models. A detailed analysis shall be provided to aid the management group to associate solutions to the problems. Implementing a formal procedure of risk management ensures the constant assessment of risks that EasyJet is exposed to. Where risks produce outcomes that adversely affect EasyJet, it is crucial that these risks are either eliminated (if possible) or minimised. On the other hand, risks which produce favourable outcomes should be exploited with the intention of adding value to the company and to maintain growth levels; pursuing a, truly European operation thats turning Europe orange (EasyJet, 2010). Modern organisations have recognised the need to adapt quickly to changing business environments and the pace in which change occurs. The purpose of enterprise governance therefore, is to strike a balance between conformance (controlling hazards and threats) and performance (maximising returns and opportunities). A key element of enterprise governance is to provide EasyJet the mechanisms to put into practice corporate decisions that will ensure the success of the company, (IFAC, 2004). Risk Identification  Ã¢â‚¬Ëœ The identification of the appropriate risks that face EasyJet is a continual process. It would therefore be useful to draw up a SWOT analysis (see appendix 1 for definition) as a device which can be used to identify risks. It would be an inefficient and time-consuming process to identify all the conceivable risks facing EasyJet, as a result only the major risks will be analysed. SWOT Analysis Strengths:  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  A leading provider of air-travel for leisure and business customers, connecting convenient airports and destinations across Europe.  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Easily identifiable through a distinctive and leading brand name. Weaknesses:  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Market for domestic travel is highly competitive, with a host of many low-budget airlines operating on similar routes. Competitors include Monarch Airlines, BmiBaby, Ryanair and many other smaller airlines. Opportunities:  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  The possibility of introducing new routes connecting travellers to a wider scope of destinations. Threats:  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  The possible occurrence of natural disasters and/or severe weather changes, which may lead to severe delays and cancelations.  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  A slowdown in economic growth or a period of recession which may lead to a sudden drop in demand for travel. To ensure the consideration of all aspects of risk, the process of identification should be carried out systematically. Therefore two elements of risk identification will be addressed;  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Earnings Growth These risks are addressed with respect to their effect on whether EasyJet is able to achieve its earnings growth targets. The basis for this approach is to analysis speculative risks, in particular business risks.  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Risk Insurance Management This involves the development of contingency plans, and possibly insurance cover for downside risks affecting EasyJet. (Coyle, 2010:29-30) Successful risk management establishes a process whereby, to classify risks into certain sub-categories, in order to identify particular risks which may be of concern to EasyJet. Business and non-business risks are the broad categories which shall be used; both further sub-divided into specific categories to identify specific risks. Business Risks  Ã¢â‚¬Ëœ Product Risk Launch of new route From the nature of EasyJets operations it is inevitable to witness a change in demand for travel, especially during this current tough economic climate. Product risk associates risks which may cause demand for travelling with EasyJet to increase or decline. EasyJet plans to launch a new route from Manchester Airport to Palma, Majorca with its inaugural flight commencing on 12th March 2011. (EasyJet, 2010). The planned launch presents both opportunities and threats in the form of speculative risk. A clear advantage of this particular route is that it provides travellers greater access and choice in terms of departure timing, pricing and location; allowing travellers to meet their particular needs, whether for leisure or business use. The new launch promotes growth within the company through increased ticket sales and hence overall profitability. It also allows the possible expansion of EasyJets fleet and in the long term a strong performance on the stock market. Analysing the situation from a different perspective, it is clear that there are few obstacles that face EasyJet. The planned route faces significant competitive pressures from incumbent airlines currently operating on this route. It has been recognised that the biggest threat challenging EasyJet arise from flights in operation by Monarch Airlines and BmiBaby. Rivalry from interdependent airlines may force prices to fall, benefiting travellers at the expense of damaged profit margins. Furthermore, services provided by incumbents may significantly improve, allowing rivals to monopolise their operations strengthening entry barriers. Further analysis of data provided by the Civil Aviation Authority concerning passenger usage of Manchester Airport (see appendix 2); indicate a decline in terminal passengers. The data illustrates that passenger numbers from years 2005 to 2010 has fallen by approximately 20.1% from 22,061,000 to 17,621,000. Suggestive arguments may indicate poor quality of services provided by MAG plc. Manchester Airports operator. Evidence reported by the Civil Aviation Authority (see appendix 3), provides some justification as to why passenger numbers are falling. The data recorded indicates that on average across the entire period, flights were delayed by 30 60 minutes. This may be of some inconvenience if time is a significant factor for passengers travelling, specifically for those on business use. Taking the analysis further, it is evident that in response to falling passenger numbers, the number of scheduled flights to Palma is also in decline, (see appendix 3). The period 2005 to 2010 saw a fall from 526 to 355 flights to this destination. The data might signify this destination to be non-profitable, or the simple case of survival of the fittest; incumbent airlines driving away new entrants away from this particular route. Such factors may present a high threat and risk for EasyJet. Operational Risk Crewing Issues Operational efficiency is a key aspect to determining the level of profitability for an organisation, especially for EasyJet, stricken by cost-cutting measures to maintain margins. Staff; whether they are crew on-board airlines or crew on the ground at airport terminals, are the key contributors to the successful operation of EasyJet. It has been a tough climate for the airline industry, in terms of operating in a period of economic decline which has led to some redundancies. Yet it is of utmost importance to preserve staff levels in order to maintain certain levels of services. Insight into the operations of EasyJet, indicates that former CEO, Sir Stelios Haji-Ioannou (currently the largest shareholder), challenged the groups right to its name over concern of punctuality, (Jacobs, 2010). It is understood that, due to cost-cutting proposals, EasyJet has more flights scheduled than crews available, (Turner, 2010). With staff shortages becoming an imminent problem; easyJet risk facing further disruptions across some parts of their network. Evidence prescribed through the views of crew members; indicate that the issue lies predominantly with poor management. Conclusive evidence of the operating difficulty EasyJet are currently faced with is the direct result of a lack of processes from head office. In the wake of such problems; Many EasyJet Flight crew are already applying to rival airlinesà ¢Ã¢â€š ¬Ã‚ ¦, à ¢Ã¢â€š ¬Ã‚ ¦ to escape the problem situation with EasyJet, (Turner, 2010). An escalating problem with crews will soon be a key contributor to the lack of motivation and passion for crews towards their respected duties. In effect this may affect levels of customer services; with rival airlines gaining extra custom at the expense of EasyJets mistake. In response, this is in direct violation as per one of the values of the company;  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Passionate: Were ambitious to be the best we can be, (EasyJet, 2010). It is therefore critical to acknowledge the importance of proper management processes for the efficient running of the organisation. Whilst there may be opportunities for growth within the organisation, it is ever more important to manage internal processes efficiently, otherwise risk facing the migration of customers to rival airlines. Non-business Risks  Ã¢â‚¬Ëœ Disaster Risk Adverse weather may cause disruptions to air traffic It is predictable to come across negative events that are beyond the control of EasyJet, severely disrupting operations. This downside risk promotes many threats, in particular to EasyJet. Forecasts published by the Met Office, indicate severe weather warnings in the coming weeks of the month of December, with a high probability of snowfall in areas of the Midlands, South East, and Southern England. It is predicted that, Britain is likely to suffer from more transport delays and icy conditions as forecasters predict the cold snap will continue, (Alford, 2010). The possibility of grounding aircraft in the face of heavy snowfall poses a significant risk to EasyJet. Examination of last years wintery chaos and the financial losses that were sustained by EasyJet and other airlines provides insightful knowledge to draw up contingency plans for the near future to minimise these losses. Airlines were faced with many challenges in December of 2009; in particular, Most of the major UK airports reported delays and cancellations, with EasyJet grounding 7, 314 of its flights, (Siddique, 2009). The recent volcanic eruption in Iceland in April 2010 provided some answers to the likely cost of grounding aircraft. EasyJet reported  £5 million in lost profits each day its aircraft were grounded, resulting in a 5% fall in its share price. Further disruption caused by heavy snowfall in December 2009 and January 2010, wiped another  £25 million off profits, (Williams, 2010). The lack of investment by airport authorities and the Government present further risks in the foreseeable future for EasyJet and its passengers. Inappropriate and shortages of snow clearing equipment imply further disruptions if airport authorities are disinclined to invest. A critical study of this situation indicates, No insurance cover available to protect against this type of event, (Williams, 2010). Future disruptions will cause EasyJet to seek financial support from the Government if liable for compensation claims, or must ensure that liquid funds are available if the cost lies completely with EasyJet. As per the organisations value, it has been identified that there will be no compromises in terms of safety. Given this view, it is advisable that EasyJet take on a risk-averse approach for such events. It is therefore crucial to apply a methodology for assessing the implications of operating aircraft in the face of adverse weather conditions. Application of Scenario Planning ensures that decision-makers are aware of the challenges facing EasyJet and take into consideration of possible future eventualities. Scenario planning allows EasyJet to think through the consequences of unexpected developments in some detail. A more detailed understanding of the unexpected, means that decisions can be taken with a more informed judgement, (Coyle, 2005:68). Risk Map  Ã¢â‚¬Ëœ In view of identifying the appropriate risks, a risk map has been drawn up as a method of risk measurement, to provide an initial judgement to aid management distinguish the more significant risks. Severity/Impact Low Medium Frequency/Probability Low Medium  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Crewing Issues High  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Launch of new route Source: (Coyle, 2005) Following on from the identification of risks, a rational has been proposed for the appropriate positioning of risks in the risk map;  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Adverse weather High Impact, Low frequency. The UK is not prone to catastrophic natural disasters due to its geographic location; therefore there is a low probability of such events occurring. However due to shifting climate patterns in the face of increasing CO2 levels, and the presence of global warming, it is evident that winter months are becoming ever more calamitous. Current indicators displaying the situation of the UK economy, with continuing proposals of further austerity packages from the coalition Government, promote further risks, in the face of delayed or postponed investments in improving the current transport infrastructure to be able to cope with severe weather conditions.  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Crewing Issues Medium impact, Medium probability. There will always come a time where firms face an imminent shortage of staff, whether on a particular day, or a longer period. Such problems will have to be dealt with, given the impact it will have on operations in the longer-term, in terms of efficiency.  Ã¢â‚¬ËœÃ¢â€š ¬Ã‚  Launch of a new route Low impact, High frequency. EasyJet will always need to introduce new routes to further destinations in order to allow growth within the company. Particular routes which may not provide the anticipated profits, will impact the overall profitability of the company, however to a lesser extent. The EasyJet Group with a large diversified portfolio of subsidiaries are able to mitigate certain losses against certain profitable subsidiaries. Conclusion  Ã¢â‚¬Ëœ The environment in which EasyJet operate in, is constantly faced with an increasing pace in which change occurs. The dynamic properties of risk imply that the process of risk management needs a continual application. The risk management group of EasyJet must accept the constant need to re-evaluate the significance of existing risks, and be prepared to look-out for new risks that may provide opportunities as well as threats in the near future. References  Ã¢â‚¬Ëœ Alford, S, (2010), Britain facing more freezing conditions. The Sunday Times, 5 December Civil Aviation Authority, (2010), UK Airport Statistics. Available: http://www.caa.co.uk/default.aspx?catid=80pagetype=88sglid=3. Accessed 17th December 2010. Civil Aviation Authority, (2010), UK Punctuality Statistics. Available: http://www.caa.co.uk/default.aspx?catid=80pagetype=88pageid=12sglid=12. Accessed 17th December 2010. Coyle, B (2005). Risk Awareness and Corporate Governance. 2nd ed. Kent: Institute of Financial Services. EasyJet plc. (2010), About EasyJet. Available: http://corporate.easyjet.com/about-easyjet.asp Accessed: 16th December 2010. EasyJet plc. (2010), EasyJet launches new route from Manchester. Available: http://corporate.easyjet.com/media/latest-news/news-year-2010/25-11-2010-en.aspx Accessed: 16th December 2010. International Federation of Accountants, (2004). Enterprise Governance: Getting the Balance Right. Available: http://web.ifac.org/publications/professional-accountants-in-business-committee/other-publications-1#enterprise-governance-gett. Accessed 19th December 2010. Jacobs, R, (2010). EasyJet faces Crewing Issues. The Financial Times. Available: http://www.ft.com/cms/s/0/d82e4402-9a87-11df-87fd-00144feab49a.html#axzz19PCFejay. Accessed 1 December 2010. Siddique, H, (2009). Icy weather disrupts Christmas Eve getaway. Guardian.co.uk. Available: http://www.guardian.co.uk/uk/2009/dec/24/christmas-eve-travel-disruption?INTCMP=SRCH. Accessed 20th November 2010. Stevenson, W. (2005). Operations management (8th edition), New York: McGraw-Hill/Irwin Turner, B, (2010). EasyJet flights delayed or cancelled as crew unavailable. Finance Markets. Available: http://www.financemarkets.co.uk/2010/07/21/easyjet-flights-delayed-or-cancelled-as-crews-unavailable/. Accessed 1 December 2010. Williams, H, (2010). EasyJet reveals cost of air travel ban. The Independent. Available: http://www.independent.co.uk/travel/news-and-advice/easyjet-reveals-cost-of-air-travel-ban-1948621.html. Accessed 20th November 2010. Appendices  Ã¢â‚¬Ëœ Appendix 1 Defining SWOT Analysis A SWOT analysis is a particularly useful model used to evaluate strengths, weaknesses, opportunities and threats that face EasyJet. Strengths and weaknesses have an internal focus and are typically evaluated by operations people. Threats and opportunities have an external focus and are typically evaluated by marketing people. SWOT is often regarded as the link between organisational strategy and operation strategy. (Stevenson, 2005:43) Appendix 2 2010 17621 8.3 2009 18937 8.6 2008 21317 9.0 2007 21886 9.1 2006 22047 9.4 2005 22061 9.7 Figure : Passenger numbers at Manchester Airport, source: (CAA, 2010) 2010 355 53 2009 449 23 2008 542 26 2007 550 26 2006 629 23 2005 526 43

Role of Institutions in Policy Making

Role of Institutions in Policy Making INTRODUCTION The purpose of this paper is to explore the role of institutions in influencing policy outcomes. First part of the paper provides a brief introduction to the study of institutions in political science. This is followed by description of factors influencing policy outcomes. Final part of the paper looks at the limitations of institutions, which pose additional constraints on policy outcomes. INSTITUTIONS IN POLITICAL SCIENCE The study of institutions is central to the subject matter of political science and, to an even greater extent, public administration. According to Lowndes (1996:181), â€Å"focus upon institutional arrangements for the delivery of public services is generally held to be defining of the sub-discipline of public administration†. March and Olsen (1984) argue that social, political, and economic institutions have recently become larger, more complex and resourceful, and therefore more important to collective life. According to them, attention to political institutions has increased in the literature on legislatures, budgets, public policymaking, local government and political elites. According to Scharpf (1989), much of comparative political science research may be characterised as an attempt to explain and predict the influence of political institutions on the choice of public policy. INFLUENCING POLICY OUTCOMES SETTING NORMS IN DECISION MAKING March and Olsen (1984,1989) see institutions as providing order in political life. Institutions increase capability by reducing comprehensiveness. Institutions express norms of decision-making and behaviour, providing a logic of appropriateness. Rules produce variation and deviation as well as conformity and standardisation. Institutions generally change in an incremental way through responding to environmental signals. AFFECTING POLICY OUTCOMES Institutions are often seen as â€Å"set of factors affecting the interactions between policy actors and hence the greater or lesser capacity of policy-making systems to adopt and implement effective responses to policy problems (Scharpf 2000:764)†. According to Gorges (2001), the European Commission and other EC institutions played a significant role in social policy-making. The European Commission sought to increase both its policy domain and its legitimacy, continually insisting that it would not abdicate its power to initiate policy. Although it is actors that are the proximate causes of policy responses, institutional conditions, to the extent that they are able to influence actor choices, are seen as remote causes. Actors are strongly influenced by the institutional rules to which they owe their existence and by institutional and cultural norms that define the criteria of their success or failure (Scharpf 2000). According to Scharpf (2000:770), â€Å"in sociological ins titutionalism, institutions are defined very broadly so as to include not only externally imposed and sanctioned rules but also unquestioned routines and standard operating procedures and, more important, socially constructed and culturally taken-for-granted worldviews and shared normative notions of appropriateness. In that view, therefore, institutions will define not only what actors can do but also their perceptions and preferences—and thus what they will want to do. Institutions constrain, but do not completely determine, policy choices (Scharpf 1989). Certain policy options are unlikely to be chosen under certain institutional conditions. According to Scharpf (1989), policy choices are simultaneously influenced by at least four sets of factors, institutional, situational, preferential and perceptional. Institutional rules will affect policy by restricting options, constituting actor constellations, regulating their modes of interaction and by structuring the incentives of the participating actors (Scharpf 2000). Institutions are imposing substantive prohibitions to policy outcomes. Countries differ in the range of institutionally permissible policy options and there is an increasing tightness of international legal constraints. For example, the power of governments to determine wages and working time was routinely exercised by most countries but is ruled out in Germany. Moreover, the tight control of capital transfers and the highly discriminatory regulation of credit markets that facilitated the success of macroeconomic full-employment strategies in Sweden until the mid-1980s would now be ruled out by EU directives liberalising capital markets and financial services. The rules of negative integration, in particular European competition law, have become a major constraint on all ec onomic policy options that could be construed as inhibiting or distorting free competition in the markets of EU member states. Institutional rules also define the constellations of actors that may participate in the adoption and implementation of policy responses and their permissible modes of interaction, which could be classified as mutual adjustment, negotiated agreement, voting, or hierarchical direction. Although most policy choices result from multi-actor interactions, some countries whose political institutions approximate the ideal Westminster model have the option of treating any major policy problem in a single- actor constellation. Here, all relevant policy choices are potentially determined by the preferences and perceptions prevailing in a unified action center. Hierarchical direction becomes an institutionally available mode of interaction, as exemplified in Britain, New Zealand, and possibly France. In rational-choice institutionalism, incentives are defined by refere nce to the self-interest of the corporate and collective actors involved in the policy process, for example, governments, political parties, central banks, labor unions, their subunits, or the individuals acting for them. In single-actor systems, the incentives that have the most direct effect on policy choices are constituted by the mechanisms of political accountability. In multi-actor systems, accountability is weakened and policy outcomes are more affected by incentives favoring cooperation or conflict between the veto actors. CRITICAL JUNCTURES AND DEVELOPMENTAL PATHWAYS Ikenberry (1994) characterises political development as involving critical junctures and developmental pathways. According to the first principle, different founding moments of institutional formation send countries along broadly different developmental paths. The second principle suggests that institutions continue to evolve in response to changing environmental conditions and ongoing political maneuvering but in ways that are constrained by past trajectories. According to Thelen (1999), where state-builders faced geopolitical competition early, they were forced into greater concessions to the financiers, merchants, and administrators who financed and staffed the bureaucracy, resulting in patrimonial systems. Where rulers confronted geopolitical pressures later, they found themselves in a quite different world, where developments in education and finance made these side payments unnecessary, resulting in greater bureaucratic autonomy. Over time, some avenues of policy become increas ingly blocked, if not entirely cut off, as decisions at one point in time can restrict future possibilities by sending policy off onto particular tracks (Thelen 1999). DIFFERENT THEORETICAL APPROACHES Although it is generally accepted that challenges to which policy actors may have to respond are influenced by the institutional setting, the dominant strands of current institutionalist theorising, rational-choice institutionalism and sociological institutionalism, differ in their conceptualisation of these influences (Scharpf 2000). LIMITATIONS Institutions have limitations which have a significant effect on policy outcomes. These limitations are focus on structures and efficiency, focus on stability, political manipulation and policy networking. FOCUS ON STRUCTURES AND ECONOMIC EFFICIENCY It has been argued that compliance with structures and practices often becomes more important than its actual efficacy (Lowndes 1996). According to DiMaggio and Powell (1991), it is the demand for similarity of structure and functioning, rather than for increased efficiency, that drives organisational change. According to Thelen (1999), the institutional approach begins with the observation that markets, embedded in political and social institutions, are the creation of governments and politics. The main purpose and effect of institutions are often seen as economising on fraction costs. Lowndes (1996:186) describes institutions as â€Å"efficient organisational frameworks, which arise to solve problems of complex economic exchange†. The critics of the new institutional economics, however, object to the proposal that a universal economic logic determines the choice of institutional systems, regardless of culture and circumstance or power and politics (Lowndes 1996). FOCUS ON STABILITY North (1990) stresses stability rather than efficiency as the economic rationale for institutions, arguing that technically inefficient institutions persist because they contribute to stability and harmony in interaction and because they are deeply embedded in culture and tradition. According to historical institutionalism, institutions do more than channel policy and structure political conflict. Thelen (1999) claims that institutions are socially constructed in the sense that they embody shared cultural understandings of the way the world works. This means that even when policy makers set out to redesign institutions, they are constrained in what they can conceive of by these embedded, cultural constraints. For example, the evolution of Japanese security policy shows how collectively held norms define appropriate conduct, shape actor identities, and influence actor interests, and in doing so, inform how political actors define what they want to accomplish (Thelen 1999). Pearson (20 00) claims that path dependence can be used to explain the analysis of European party systems, labor incorporation in Latin America, the outcome of state-building processes in Europe, and the comparative development of health care systems. According to Thelen (1999), the problem with this approach is that dominant cultural norms emerge out of concrete political conflicts, in which different groups fight over which norms will prevail. Dominant policy paradigms can and do shift at times and organisational fields are often imposed by powerful actors. According to Stinchcombe (1997), it is legitimacy and not automaticity that explains why people follow scripts in the first place. Furthermore, the entrenchments of certain institutional arrangements obstruct an easy reversal of the initial choice (Pearson 2000). The conception of path dependence, in which preceding steps in a particular direction induce further movement in the same direction, is well captured by the idea of increasing returns. In an increasing returns process, the probability of further steps along the same path increases with each move down that path because of the costs associated with exit or change. According to North (1990), institutions induce self-rei nforcing processes that make reversals of course increasingly unattractive over time. This, according to Arthur (1994) leads to unpredictability, inflexibility, nonergodicity and potential path inefficiency. POLITICAL MANIPULATION In politics, institutional constraints are ubiquitous (Pierson 2000). Politics involves struggles over the authority to establish, enforce and change the rules governing social action in a particular territory. According to Gorges (2001), the institutional change could be influenced by material and ideal incentives the policy entrepreneurs provide. Furthermore, change is most likely when there is an increase in the effectiveness of individuals seeking change and a decrease in the blocking power of individuals whose interests are served by the current institutional arrangements. Institutions are not neutral coordinating mechanisms but in fact reflect, and also reproduce and magnify, particular patterns of power distribution in politics (Thelen 1999). Thus, political arrangements and policy feedbacks actively facilitate the organisation and empowerment of certain groups while actively disarticulating and marginalising others. â€Å"Manipulated by utility-maximising politicians and bur eaucrats, institutions degenerate over time. They come to serve the individual, private interests of officials and any conception of the public interest is lost (Lowndes 1996:188)†. Public officials seek to augment their status and material through increases to budgets under their control, and utility-seeking politicians attempt to maximise votes by promising benefits and service enhancements, which results in waste and over-supply of government goods and services (Niskanen 1973). An alternative to the budget-maximising thesis is provided by bureau-shaping theory which accepts that bureaucrats are self-serving, but denies that they pursue a single course of utility-maximising action (Lowndes 1996). In rational-choice institutionalism, institutional rules are understood as external constraints and incentives structuring the purposeful choices of self-interested rational actors (Scharpf 2000). Thus, when certain actors are in a position to impose rules on others, the employment of power may be self-reinforcing (Pierson 2000). Actors may use political authority to generate changes in both formal institutions and various public policies designed to enhance their power. Skocpol (1992) argues that institutional arrangements affect the capabilities of various groups to achieve self-consciousness, organise, and make alliances. For example, the fragmentation of the state, as well as the organisation of party competition along patronage lines, actively mediated against the development of a unified working class that could then spearhead the movement for comprehensive social policies in the United States. Scharpf (2000) does not agree with this notion, arguing that actor preferences have at least two dimensions individual and organisational self-interest on one hand and normative obligations and aspirations on the other. INSTITUTIONS AND THE â€Å"POLICY NETWORKING† The policy network approach is concerned with the institutionalisation of relations between governmental and non-governmental actors (Lowndes 1996). The concern is with actual institutional practices rather than with formal organisational arrangements. Jordan (1990) refers to an institution as an extra-constitutional policy-making arrangement between industries and clientelistic groups. Lowndes (1996) points to the traditionally fragmented structure of British government and the influential role played by interest groups in policy-making. In such environment, â€Å"policy is made not by a unified government machine but by an assortment of actors, governmental and nongovernmental, linked together in more or less formal and coherent networks (Lowndes 1996:190)†. Furthermore, institutions are embedded in networks of other institutions, and it is difficult to change one institution in a matrix because of this embeddedness. According to Lowndes (1996), policy networks routinise rel ationships, promoting continuity and stability. One example is the EU, where the European Commission has often granted access to, and attempted to institutionalise the participation of interest groups as a way of securing legitimacy for its proposals before presenting them to the Council of Ministers (Gorges 2001). The Commission has attempted to sustain and expand the Community political system by providing information to the social partners, forcing them to re-evaluate their interests and priorities, and supporting the development of a Community/Union system of interest intermediation by providing a forum for conflict resolution. The capacity for effective policy responses is affected not only by the quantity and quality but also by the diversity of policy-relevant information and analysis provided by an institutionalised information infrastructure (Scharpf 2000). Policy coordination in Austria, for example, was greatly facilitated by the fact that the government, the political parties, and the social partners relied on the analyses provided by a single economic research institute. In Germany, by contrast, unions and employers maintain separate research institutes, the federal government supports altogether six such institutes, the federal labor administration and the Bundesbank maintain large in-house research capacities, the independent Council of Economic Advisors relies on its own research staff, and the big commercial banks have their own macroeconomic research departments. The downside of the monopoly model is the risks of groupthink, or the failure to pay attention to observations, interpretations, and recommendations that do not conform to the dominant worldview (Scharpf 2000). This was arguably the case in Britain in the early 1970s, when policy makers in the treasury continued to rely on the Keynesian recommendations derived from the single macroeconomic simulation model, even when the economy had ceased to respond as predicted (Scharpf 2000). However, when the analyses of institutionalised information monopolists do fit the problem, they will facilitate effective problem solving in single-actor systems and effective coordination in multiactor systems. The pluralistic model, by contrast, will provide protection against the institutionalisation of error. CONCLUSION The paper has explored the role of institutions in influencing policy outcomes. Institutional conditions, to the extent that they are able to influence actor choices, are seen as remote causes. Institutions influence policy outcomes by setting norms in decision making. Furthermore, institutional rules affect policy by restricting options, constituting actor constellations, regulating their modes of interaction and by structuring the incentives of the participating actors. Although it is generally accepted that challenges to which policy actors may have to respond are influenced by the institutional setting, the dominant strands of current institutionalist theorising, rational-choice institutionalism and sociological institutionalism, differ in their conceptualisation of these influences. Limitations of institutions, such as the focus on structures and economic efficiency, the focus on stability, political manipulation and policy networking, further influence policy outcomes. BIBLIOGRAPHY Arthur W.B. (1989). â€Å"Competing Technologies, Increasing Returns, and lock-in by Historical Events†. Economy Journal, Vol. 99. Ashford, D. E. (1977). â€Å"Political Science and Policy Studies: towards a structural solution†. Policy Studies Journal, Iss.5, pp.570-583. DiMaggio, P and Powell, W. (1991). â€Å"Introduction†, in W. Powell and P DiMaggio The new institutionalism in organizational analysis (eds). University of Chicago Press. Gorges, M.J. (2001). â€Å"The New Institutionalism and the Study of the European Union: The case of the social dialogue†. Western European Politics, Vol.24, Iss.4, pp.152. Ikenberry G.J. (1994). â€Å"History’s Heavy Hand: institutions and the politics of the state†. Conference on The New Institutionalism, University of Maryland. Jordan, G. (1990). â€Å"Policy Community Realism versus New Institutionalist Ambiguit†. Political Studies, Vol.38, pp.470-84. Lowndes, V. (1996). â€Å"Varieties of New Institutionalism: A critical appraisal†. Public Administration, Vol.74, pp.181-197. March, J. and Olsen, J. (1984). â€Å"The New Institutionalism: Organizational factors in political life†. The American Political Science Review, Vol.78, No.3, pp.734-749. March, J. and Olsen, J. (1989). â€Å"Rediscovering Institutions: the organizational basis of politics†. Free Press, New York. Niskanen, W. (1973). â€Å"Bureaucracy: Servant or Master?† Institute for Economic Affairs, London. North, D. (1990). â€Å"Institutions, Institutional Change and Economic Performance†. Cambridge University Press. Pierson, P. (2000). â€Å"Increasing Returns, Path Dependence, and the Study of Politics†. The American Political Science Review, Vol.94, No.2, pp.251-267. Scharpf, F.W. (1989). ‘Decision Rules, Decision Styles and Policy Choices’, Journal of Theoretical Politics,Vol.1, Iss.2, pp.149-176. Scharpf, F.W. (2000). â€Å"Institutions in Comparative Policy Research†. Comparative Political Studies,Vol.33, pp.762-790. Skocpol T. (1979). â€Å"States and Social Revolutions.† Cambridge University Press. Stinchcombe A.L. (1997). â€Å"On the Virtues of the old Institutionalism†. Annu. Rev. Soc. Vol.23 Thelen, K. (1999). â€Å"Historical Institutionalism in Comparative Politics†. Annual Review of Political Science, Vol.2, pp369-404.

guide :: essays research papers fc

A Student Guide to Writing a History Paper The first thing that you may ask is why write papers at all? Writing is an invaluable part of the educational process, because writing forces you to take your knowledge of a subject, and organize it all into a coherent and concise presentation. Furthermore, it forces you to dig deeper and uncover interesting information about a person or event that might otherwise be mentioned during instructional time. There is another practical reason why you should write well. After you graduate, many of those with whom you will have contact in your professional life will judge you and your work based upon your writing. Whatever career path you choose, you will have to write letters, reports, speeches, proposals, etc., that others will read before they ever hear the sound of your voice. These individuals will develop their first and often lasting impression of you based on your writing skills. Writing is a skill and like any skill is fine-tuned through practice. When you write history papers, use this as a guide and it will improve your final product. ________________________________________________________________________ Thesis Statement Before you start writing your paper, develop a carefully constructed thesis. Every paper must have a thesis. Your thesis should be stated clearly in the introduction of the paper so the reader is not left to wonder just what argument you are making. If you cannot say what you want in one or two sentences, then your thesis is probably to broad. The thesis statement does not have to be in the first sentence of your paper (although it can be) but it should appear somewhere on the first page. In the paragraph that contains your thesis, you should also mention the sort of evidence that you are going to use to offer support for the body of your paper, your argument, and how your topic fits into a broader context of history. Body of the Paper Once you have a clear introduction for your paper, you must elaborate on the argument that you are pursuing. Discuss relevant facts, arguments, and counter-arguments and explain why you think your thesis is correct. Early in the paper you should place your topic in its proper historical context. Go back into the history of your topic only so far as that background is relevant to your argument. Also, do not spend too much time on other people's arguments.

Charles Dickens Great Expectations Essay -- Charles Dickens Great Exp

Charles Dickens' Great Expectations Chapter one of the novel Great Expectations opens in a bleak and overgrown churchyard on the eerie marsh country. Here we are introduced to Pip, as a young and naà ¯ve boy, and we discover he is also an orphan, who lives with sister and her husband the blacksmith, in a small village a mile or more from the church. Whilst Pip is in the churchyard, he meets an escaped convict, Magwitch, whom Pip gives food to, and this encounter remains poignant in both their lives, as Pip goes on to receive the opportunity to become a gentleman, from a mysterious benefactor, and he abandons his friends and family for his â€Å"Great Expectations† and his London lifestyle. The desolate choice of setting and location for the start of the novel are relevant to Pip’s unhappy childhood. Dickens uses negative descriptions such as â€Å"bleak place overgrown with nettles† to create a vivid and miserable image in the readers mind. At once it becomes obvious that Pip’s tale is not going to be a joyful or pleasant one- more the reverse, as his surroundings are described with more depressing phrases including â€Å"dark flat wilderness†, to describe the marshes and land beyond the churchyard, and â€Å"distant savage lair†, to emphasise the fierceness of the sea. We get the impression of an isolated, wild and barren marshland, and feel sorry for the poor young boy let out with nobody with him. We are told that Pip never saw his father or his mother, and told also that he childishly derived what they may have looked like from the appearance of their tombstones. Pip evidently felt alone and deserted at this time, as we see him in the churchyard visiting his parent's graves, and looking at the â€Å"five little stone... ...gers that finish off each chapter. The fact that Magwitch is introduced to Pip in the first chapter is appealing for the reader, as this creates curiosity in wanting to know what is going to happen to Pip, and what is to become of Magwitch. The reader is persuaded to read on to find out also whether Pip obeys Magwitch, and how Pip completes his task. Also, because we feel sorry for the poor boy, we are curious to find out the outcome of his life and whether it gets any better. Overall, Chapter one of the novel Great Expectations provides us with sufficient information about Pip to know that he is not going to grow up in a loving and caring environment, as we find out that he is an orphan, who lives with his sister and her husband, in a strict and unloving household, and is let out alone in a deserted churchyard visiting his parents graves one evening.

Plot of Pride and Prejudice :: essays research papers

Mrs. Bennet is anxious to have her five daughters marry into well houses. When a rich single, man Charles Bingley, arrives nearby, she urges her husband to get to know him. The Bennets go to a ball in a town called Meryton, and are introduced to Charles Bingley. Everyone likes him but his friend, Fitzwilliam Darcy is found to be arrogant. Mr. Darcy doesn’t dance with anyone outside his â€Å"group,† and he says that Elizabeth Bennet is attractive, but not enough to tempt him. Mr. Bingley starts to admire Jane Bennet and his love deepens to the extent that Jane’s sisters and Mr. Darcy get concerned. Mr. Darcy is repelled by the family’s lower status and an embarrassing family. Mr. Darcy, however, still becomes interested in Elizabeth’s good-spirited character, and Mr. Bingley’s jealous disapproval do nothing to lessen Mr. Darcy’s interest. Caroline asks Jane to come to Netherfield. On the way there, Jane catches a cold and is forced to stay. Mrs. Bennet loves this information because she will use any means to push her daughter onto Mr. Bingley. Jane’s condition worsens, and Elizabeth goes to Netherfield instead. Her concern for her sister and her intellect interest Mr. Darcy even more, but he is afraid of falling in love with someone who is so much poorer. Mr. Bennet’s estate at Longbourn is supposed to go to Mr. Collins, a clergyman, because Mr. Bennet doesn’t have a son and Mr. Collins is the nearest male relative. Mr. Bennet sends his cousin on a chore to Meryton with his daughters. There they meet George Wickham, a handsome militia officer. At an evening party, Wickham tells Elizabeth his life story. Wickham’s story makes Darcy look arrogant and cruel, and Elizabeth start to have a prejudice against Mr. Darcy from then on. At another ball, Elizabeth resents Wickham’s absence. Later on she is also embarrassed by her family. Mrs. Bennet refuses to stop talking about what a good couple Jane and Mr. Bingley will make. On the other hand, Mary Bennet bores the whole company by trying to play the piano. Mr. Collins, suddenly, proposes to Elizabeth at the ball and she rejects. Mr. Collins doesn’t believe that Elizabeth is intently refusing him, but after Mr. and Mrs. Bennet explain it to him, he seems to understand. The whole Bingley party, all of a sudden, leaves Netherfield to go to London. Caroline Bingley writes to Jane that they don’t mean to return for the whole winter, and she tells her what a good couple Georgiana Darcy and Mr.

Cisco’s Strategy in Recessionary Times Essay

Executive Summary This report is an examination into the strategic management practices used by Cisco Systems, Inc., over the dot com bubble from 1997 to 2000 and an overview of Cisco as a company, and its acquisitions over the past 20 years. The report was created by Alex Quigley, Eoin McCrann and Daniel Ozac, as part of a continuous assessment deliverable as part of BSHCE3, Hons Degree in  computing at the National College of Ireland. It is supported by a PowerPoint presentation of the same name, in the attached appendix. Introduction The report will first review the literature used during the research of the topic and outline the types of information resources used during the reports generation and an overview of these findings. There is an attached overview of Cisco as a company (Appendix A) which outlines how it was founded, and its current market position, and a brief history. Next, we will take a high level overview of their strategy and then identify the key strategic tools used by the company and how they differed at the time from their competitors in this regard. Next we will look in detail at Cisco’s acquisitions over the past 20 years since the company formed, and how this particular strategy was affected by the crash. After this we will look at Cisco’s financials and how their strategy has enabled such large growth. The importance of their strategic choices in developing this financial growth, and finally some of the possible risks associated with the key strategic tools used by the company during this period. Finally, a conclusion and summary of our findings and an appendix for the resource references used during the research, and an appendix of financial information. Literature Review  From the outset the base for all our research started with the case study (Indu, 2010). This gave us a very good overview of the company and how it has, over the past 20 years, faced great triumph in the face of adversity, and bounced back, particularly after difficult times throughout the company’s history In particular during recessionary times such as the dot com crash and the recent global economic downturn. The course notes from BSHCE3 Strategic Management were used to identify the key strategic management tools. Wikipedia was also liberally used to identify and further expand on some of these tools, their founders and also  as a high level overview of Cisco as a company. Other online resources that proved very informative during research were CNN and in particular the money section of the website which maintains detailed information on a large number of companies, and the NASDAQ website which also maintains (as expected) detailed stock and financial information. It’s also worth mentioning that Cisco’s own website is very informative, with detailed financial and organizational structure. Strategic Overview From the case study delivered during class (Indu, 2010) it is clear that Cisco’s goal was to increase market share and maintain a sustained growth. Added to this continued improvement to customer and supplier relations. The company’s current mission statement states that; ‘Cisco’s mission is to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners.’ (Cisco.com) With a strong customer focus at the core of their business, another strategy employed by Cisco is to position themselves close to not only the customer but suppliers too. This closeness and strength of supplier relations allows Cisco to respond quickly to changing customer and in fact market demands and trends. One of the strategic applications to enable growth and innovation was the use of acquisitions. From 1993 to present day Cisco has acquired over 150 companies in a wide range of Information Technology and Networking sectors. This is facilitating gaining and maintaining competitive advantage. However, proving the strength of the management and effective adaptation, Cisco has been able to change their strategy when required and in 2000, after the dot com bubble burst, its highly successful strategy of procurement was abandoned and under the leadership of John Chambers, the  company was able to successfully tighten its purse string, downsize the business and successfully ride out the storm. This leads to another strategy employed by Cisco, and one that has not been helped employee relations, the choice to downsize during periods of economic or market downturn. This retrenchment again shows Cisco’s effective adaptation, but has led to issues with morale among employees. Ciscos core business is networks, communication and information technology. So it is no surprise that in parallel to providing companies with the tools and information systems seen as ‘strategically important’, they themselves view these systems as paramount to the company’s success. Examples of this are the ‘bug alert’ system implemented in 93 and even earlier, the FTP site a database to allow customers and developers improve existing components and systems. One defining factor in all Cisco’s strategic choices has been to stick to the knitting. As Peter Drucker stated; ‘Think through the overall mission of a business, and ask the question: What is our business?’ In Cisco’s case, their business through numerous acquisitions and strategic changes has essentially remained the same. Chambers believed that there are 4 key elements that a company needs in order to survive a recession; 1. Being realistic about the CAUSE of your challenges – don’t just blame a recession, focus internally as well, is there something you’re doing as well? 2. Try to determine the length and intensity of the downturn – then respond appropriately 3. Prepare for the upturn – Survive and thrive, gain market share 4. Expand customer relationships – customers can give insight into when the recession may end And this isn’t always the best strategy, as it does not allow for innovation internally within the organisation. The lack of intrapreneurship has led to poor company ratings in terms of ‘great place to work’ scores. In order for Cisco to get new products or enter into a new market, they generally have to purchase a new company rather than use organic growth or in-house smarts. Their competitors on the other hand employ strategies of organic growth and are less inclined to purchase companies in order to gain entry into different markets. However there have been some key acquisitions that allowed direct competition to Cisco, which will be discussed in more detail in the next section. Cisco through every recession have maintained large assets and cash. They saw it as vital in order to survive. This allowed them to make bold decisions when most companies are cutting back, and also respond immediately when the market begins to pick up again. Something competitors have had difficulty with. Acquisition Timeline As stated previously, Cisco’s core business has been a factor in the type of businesses acquired over the company’s history. From 1993 to 2000, there was a sustained level of acquisition, increasing year on year. During this time Cisco has acquired over 150 companies, most of which were US based. Figure [ 1 ]| However, it’s clear from ‘Figure 1’ above that after the crash in 2000, Cisco drastically decreased acquisitions with only one acquisition in 2001. In the two years previous to this Cisco had acquired an amazing total of 40 companies. And once again in 2008 the company slowed acquisitions to match the downturn in demand for their products. Although not as drastically as 2001. They used these times to focus on new emerging markets, and develop new technologies. Figure [ 2 ]| Most of these businesses were related to the area of Computer Networking, Lan Switching, Gateways and Routers. This is in keeping with Cisco’s strategy of ‘stick to the knitting’. Second to these is the VOIP technology sector. By 2004, Cisco had returned to its acquisition strategy and sustains this level for a number of years. What is interesting is if you map the NASDAQ composite index, which is heavily populated with IT related companies; it almost perfectly matches the acquisition timeline for Cisco, as can be seen  in ‘Figure 3’ below. Figure [ 3 ]| Cisco didn’t just acquire the companies and integrate the management of them into their own structure. For the most part these companies were allowed to continue as individual entities, and keep their existing structure and organisational managers. Competitors Acquisitions Hewlett Packard One of Cisco’s competitors is HP, the computer hardware and software giant. In 2008, HP acquired Colubris Networks. Colubris Networks provide organizations with advanced wireless networking solutions that unify and integrate with existing network infrastructures, as well as security and management systems. This was an attempt by HP to try and take market share of Cisco’s strong hold on network infrastructure, and in this case the wireless LAN market. In 2009, HP purchased 3COM, the digital electronics manufacturer best known for its computer network infrastructure products, for $2.7 billion. This was a huge strategic move from HP to strengthen their position in the market which Cisco has been controlling. HP realized there were large gaps in its product line, mainly network switching, which would take too long to fill organically and needed a quick-fix. HP wanted to take on Cisco in this sector, and 3Com wanted to expand outside of China. This acquisition meant the Introduction of low-cost switches, which was a competitive advantage that Cisco was unable to match. Juniper Networks Another of Cisco’s direct competitors, Juniper networks, a networking equipment manufacturer based in Sunnyvale, California. In contrast, Juniper had no acquisitions between 2006 and 2009, and instead focused all their efforts on internal innovation and organic growth. However in 2010 they acquired Ankeena Networks for $100 million. This was a  move to directly compete against CSICO’s video conferencing market position. Ankeena Networks deliver new media infrastructure technology, and their technology is designed to help service providers deliver a better video experience on both fixed and mobile devices. Also in 2010, Juniper purchased Blackwave Networks in order to support Ankeena networks. Blackwave networks key business is to provide video storage and delivery. Both of these purchases were seen as Juniper bulking-up its video delivery capabilities in order to take on Cisco in this area. Polycom As with Juniper acquisitions in 2010, Polycom’s core business is in the area of video conferencing and in particular Telepresence and supporting infrastructure equipment. Between 2008 and 2010 they did not acquire any companies. In 2011 they acquired HP Visual Collaboration, a network and video management company for $89m. This move was in response to Cisco’s hostile $3.3bln takeover of Tandberg. The purchase was to strengthen Polycom’s position and ensure that they are strong enough to compete with Cisco. Strategic Tools A number of tools exist to assist organisations in developing strategies and insight on what industries and areas their business should focus on. Some of these are outlined below. SWOT Analysis A planning method used to determine the internal factors: strengths, and weaknesses, as well as the external factors: opportunities and threats, facing a project or organisation. The SWOT analysis helps project managers or organisations with the decision-making process. It is especially useful when considering entry into a new market, or when releasing a new product. It can be used to develop a strategy to help distinguish your organisation from your competitors. Porter’s 5 Forces A technique used to determine the intensity of competition within your market. The five forces are: threat of new entrants, threat of substitute products, and bargaining power of suppliers, bargaining power of buyers and the intensity of competitive rivalry. It is used to show the relative attractiveness of a particular market, and as such helps with the decision-making process for project managers and organisations. PEST Market Analysis Tool A tool used to help understand market growth or decline. PEST is an acronym for Political/Legal, Economic, Socio-Cultural, and Technological. Like SWOT and Porter’s 5 Forces, PEST is used to analyse or review a strategy or position at a given time and then help with the decision-making process. Other Other tools include Management by Objectives (MBO), TOWS Matrix, Internal Analysis, Value Chain and BCG Portfolio Model, but for this report we will focus on the three tools above, and how they relate to Ciscos management strategy. Strategic Tools on Cisco SWOT Analysis The SWOT analysis outlines internal strengths and weaknesses and external opportunities and threats. Strengths  In terms of internal strengths, Cisco is in a very good market position for its main core products (networking equipment) and is seen as the market leader in this area. Cisco has number of alliances with major players in the market, including Microsoft and IBM. Cisco also maintains a very strong balance sheet every year, ensuring a large supply of cash is available. Weaknesses Conversely, its main weakness is the high cost of its products, when compared to its competitors (e.g. HP and their low-cost range of network switches). This is not a major problem for Cisco however, as their focus is on reliability and customer satisfaction, not beating prices with competitors. Other weaknesses include the lack of a presence in the consumer market and the lack of innovation. Cisco’s growth and new product line comes from acquisitions rather than internal innovation and organic development. Opportunities Opportunities in the market include cloud computing, smart-grid technology, the home consumer market and the area of video conferencing thanks to its acquisition of Tandberg. Threats  The main external threat to Cisco is the unstable global economy. Chambers was initially very optimistic about the economic recovery; however he has recently toned-down his statements and has admitted that recovery may take longer than initially expected. Other threats include cheaper alternatives and their direct competitors: Hewlett-Packard, Juniper and IBM. Figure [ 4 ]| Porter’s 5 Forces Porter’s 5 Forces model helps to determine the level of a number of factors. Once established, this helps to determine the relative attractiveness of a particular market or sector. Threat of New Entrants: MEDIUM Large enterprises will generally only enter the market by acquiring specialist companies, and small companies will not really be able to compete due to the infrastructure and resources required. Any small, successful start-up will generally be acquisitioned by a larger one. Because of these factors the threat of new entrants into Cisco’s core market (design and manufacture of networking equipment) is medium. Bargaining Power of Suppliers: LOW Cisco generally uses short-term contracts with its suppliers. This allows them to easily adjust their output depending on supply and demand. Cisco also uses a multitude of different suppliers across the globe. Their main focus is on reliability and customer satisfaction rather than competing on price. For these reasons the suppliers have a low level of bargaining power. Bargaining Power of Buyers: HIGH In terms of networking equipment and video conferencing facilities, there are a wide range of suppliers for customers to choose from. These include Hewlett-Packard, Juniper, and Polycom. There are also cheaper alternatives in the market. This gives the customers much more bargaining power. Threat of Substitute Products: LOW Organisations rely on networking equipment such as hubs, switches and routers. They are vital to networks and will not be replaced by substitute products. Therefore the threat to Cisco is low. Intensity of Competitive Rivalry: HIGH The sector is very competitive with HP and Juniper seen as Cisco’s main rivals. Cisco’s entry into the videoconferencing and Telepresence market has increased this rivalry. Cisco is still seen as the market leader. PEST Market Analysis This market analysis used to help understand market growth or decline and help to influence the decision-making process. Political & Legal  Political and legal considerations for Cisco include regulations regarding customer and employee data privacy and security. Given the market they operate in, their products need to adhere to many different standards and certifications. These include ISO, IEEE, IETF, ITU and Wi-Fi Alliance. As Cisco is an international organisation operating in many different countries across the globe, they must be aware of differing national laws and regulations. A major strategy of theirs is the acquisition of other organisations. They must therefore be aware of the laws and regulations governing this process in different countries and continents, e.g. the acquisition of TV software developer NDS had to be approved by the European Commission. Economic The current economic outlook is poor, with low growth and uncertainty about when it will end. There are high unemployment rates across the globe, low inflation rates and increased labour costs. Current rates of interest are also important. These are all factors that Cisco will consider with any new  venture. Socio-Cultural Demographics, language, culture, customs and religion are not really a huge concern for Cisco. One socio-cultural issue that may relate to them is the current trend of technical people leaning more towards open-source software and hardware products. This may have a negative impact on some areas that Cisco operates in, as Cisco IOS is closed-source. However Cisco does work with over 40 open source software projects. Another area that Cisco will consider is the green and renewable energy sectors. Cisco’s recycling and emissions and energy consumption reduction programs have worked well and even resulted in them becoming certified. Cisco is also one of the driving forces behind making purchases from women, veteran and minority-owned companies. Technological Cisco spends nearly $5.3 billion on research and development per year, ensuring that they stay at the cutting-edge of technology. In terms of innovation Cisco generally â€Å"stick to the knitting†, i.e. they stick to their core competencies and acquisition other organisations when moving into new areas. Areas of technological growth include video and teleconferencing, telepresence, unified communication, big-data, cloud computing and smart grid (overlaying a digital network onto the existing electrical network). Figure [ 5 ]| Financial Overview Looking at Cisco’s finances provides and insight into invest psychology. Going back to 1993 (Figure 6) we can see that Cisco had strong earnings growth. Cisco really suffered during the recession in 2001 as they were unable to predict economic downturn and net sales fell by almost 30 per cent. Chambers was forced to write off inventory of $2.2 billion, and 8,500 people were made redundant. Figure [ 6 ]| Reorganisation The reorganisation of its operations after the crisis in 2001 was followed by  strong growth. By looking at the Cisco’s last year’s financial statements (Figure 7) we observe that their bottom line, in other words, Net Income was pretty stable and year over year, has known a continued growth from 2003 onwards, except the last couple of years, starting with 2008 when the net income declined to 2009 and got back pretty much as the same level in 2010 and once again declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding this time the 2010 level. Figure 7| Technology Bubble The orange line on the graph represents earnings per share growth and as we can see since 1993, the average operating earnings growth rate has averaged 24.5% a year. The black line represents the monthly closing stock prices. As we can see at the beginning the earnings in price track each other very closely and then between 1997 and 2000 we observe that Cisco stocks became overpriced which matched the other trends in the technology market during the dotcom bubble. It climaxed on March 10, 2000, with the NASDAQ peaking at 5132.52 in intraday trading before closing at 5048.62. (Jesse Colombo, 2012). We can clearly see how during this period Cisco became disconnected from growth and earnings. The price collapsed as a consequence. However, since 2002 – 2003 Cisco stocks has traded more in line with its operating earnings growth (Appendix A, Earnings Growth). Price Earnings Ratio Although Cisco is trying to ensure a dominant position in all of its markets (and reflected in last quarterly results) their earnings were above expectations. This doesn’t give a clear picture of the potential for continued growth for investors. Price Earnings Ratio demonstrates investor psychology in the (Figure 7). It illustrates value in relation to the company’s earnings and is strictly related their yearly financial statements translated into net income. The higher the price earnings ratio the more the market is willing to pay for the company’s earnings. Conversely, a low P/E may indicate a â€Å"vote of no confidence† by the market or it could mean this is a sleeper that the market has overlooked. Known as value stocks, many investors made their fortunes spotting these â€Å"diamonds in the rough† before the rest of the market discovered their true worth. (Ken Little. 2012). Looking closer at earnings growth rate for the time frame 2003 – 2012, we observe that Cisco is averaging at almost 20 per cent stock growth a year (Figure 8) and since 2003 there was a time when the P/E ratio was much higher. Figure 8| By looking below at the P/E graph (Figure 9) we can see that by Fiscal Year End 2003 was nearly 40, by Fiscal Year End 2004 it dropped to 28 and then by Fiscal Year 2005 again to 21. We can see a continuous drop, in 2012 was just over 10 and currently the P/E ratio is around 12.0 based on the closing price of March 28th 2013. Figure 9| Finances over the Last Decade Looking at Cisco’s financial statements for 2003 – 2013 and the historical stock price trends, we can see that Cisco had an accelerated earnings growth. The graph below (Figure 10) outlines this cyclical nature. Figure 10| They had a growth rate of 89 per cent in 2003, 43 per cent in 2004 but by 2009 there was a 19 per cent decrease. This was during the global economic downturn and reflected in their financial statement. Despite that, it’s clear that the company was very profitable. Their earnings increased 24 per cent and are forecasted to reach 20 per cent by the end of the fiscal year 2013. Financial Observations Below are observations on Cisco’s last Financial Results for Q2 2013 released  February 13, 2013. Cisco reported so far a very strong FY 2013 earnings, maintaining their leadership positions in key areas of IT infrastructure such as Switches and Routers, while the firm’s financial strength in terms of cash flow allow them to catch up and surpass other companies in areas such as Wireless, where it wasn’t initially a market leader. Figure 11| The data above, (Figure 11) illustrates Q2 net sales of $12.098 billion, with an increase of 5% year over year. GAAP net income and GAAP earnings per share, for the second quarter of fiscal 2013, included total tax benefits of approximately $926 million or $0.17 per share (Julie Bort, 2013). Product revenue grew 3% while services revenue grew an impressive 10%. Cash flow from operations was well over $3 billion and the company continues its prodigious free cash flow production, which according to Frank Calderoni the CFO, Cisco: â€Å"Cash is King. It enables us to make bold moves.† Gross margins have been very stable around 62% lately for Cisco, exhibiting the strength of the brand versus its competition. According to the analysts, Cisco’s Services business is a key differentiator between it and its competition, and because the margins are higher on Services than Products, the company’s total gross margin should continue to improve slightly (Tim Travis, 2013). According to John Chambers, Cisco chairman and chief executive officer: â€Å"Cisco delivered earnings per share this quarter and record revenue for the 8th quarter in a row in a challenging economic environment. We continue to drive the innovation, quality and leadership our customers expect, and we remain focused on consistent returns to our shareholders†. Strategic Risks Innovation Momentum According to Forbes magazine Cisco lost its â€Å"innovation momentum† and that’s because they relied more on external acquisitions for new product  development: the reliance on external rather than internal sources of innovation, e.g., the purchase of start-ups with promising products. The problem with this strategy, however, is that it is costly, destructive, and unsustainable. It is costly because the would-be acquirers end up buying start-ups that fail to produce any marketable products. It is destructive because it eventually distances would-be acquirers from their end customers. It is unsustainable because it often ends up fuelling bidding wars, as the owners of these smaller companies demand higher and higher premium to compensate them for the risks they assume. (Panos Mourdoukoutas, 2012) Acquisition Strategy Over the period 1993-2013, Cisco acquired one hundred and fifty six companies. Some of the latest acquisitions are Meraki (2012) operating in the Wired and Wireless Cloud networking market, SolveDirect (2013) operating in the Cloud Services market, Intucell (2013) operating in the Mobile Software market†¦etc. By relaying your company strategy only on acquisition you forget to cultivate innovation and creativity across your own organisation and we believe that Cisco strategy in the long run might bounce back as a failure and affect their core competencies. Core Competencies By definition the core competencies differentiate an organization from its competition. The Core Competencies create a company’s competitive advantage in the marketplace and typically, a core competency refers to a company’s set of skills or experience in some activity, rather than physical or financial assets. If we look at the case study (Indu, 2010) and where Cisco stands today within the IT market, we realise indeed that their resources in terms of reputation, brand, financial assets and products are still strong, but in terms of capabilities and talent which help to sustain innovation as a key differentiator between market leaders and their rivals, they have chosen the wrong path. New Markets There is no doubt that Chambers is a successful CEO. This can be seen in Cisco’s last year’s financial statements but since Cloud computing technology has gone mainstream and greater use of mobile telephony networks. Cisco has been unable to innovate, launch and grow new markets for services or applications. According to Forbes Magazine, Chambers has reorganized the company 3 times – but it has been much like rearranging the deck chairs on the Titanic: â€Å"Lots of confusion, but no improvement in results† (Adam Hartung, 2012). Strategic Vision Another risk to be noted is the â€Å"Where to go vision† – distraction and lack of a long-term vision adopted by Cisco is a major risk for the company. In one of his statements, Chambers said: â€Å"I don’t make my decision on the next quarter or on the next year. I make my decision three or five years out so I do not adjust my strategy based on what’s the spending is going to be next quarter or three quarters.† With instability shown in the financial markets for the last couple of years and the prolonged economic recession along with low consumer confidence there is a disjoint with Chambers strategic statements. Consumer Market Penetration Cisco’s growth has been based on a strategy of acquisitions. The main reason behind this was the penetration or expansion of new market opportunities. Cisco have made several ambitious moves into the markets for enterprise tablets, video conferencing and consumer products. Some of these decisions have been ineffective in competing in these markets. In some cases, due to excessive prices and faster development and deployment cycles of competitors. In today’s competitive tech environment those who are slow in bringing innovation and new products to the market will fail to succeed. An example of reinventing the wheel could be Cisco’s Flip camcorder which they acquired in 2009 from Pure Digital. The product failed and the $590 million investment was lost. Customers’ needs are constantly changing and want their technology suppliers to offer those sophisticated services and equipment. Like other tech giants, Cisco is struggling to adapt to changing market conditions and demand in terms of technology and products. Building Revenue Erik Suppiger, an analyst with JMP Securities in San FranCisco, said Cisco â€Å"did a good job managing costs, and keeping their margins up, but there’s a lot of concern about what they can do to build revenue. Building a cloud and wireless business eats into your traditional product lines. If you have a wireless laptop, you don’t need a desktop computer connected to your office network† (Quentin Hardy, 2013). It seems that Chambers, who has led Cisco for 18 years, is well aware of this problem, in one of the latest interviews he said: â€Å"We’d gotten too fat. And when you get fat, you’re slow in decision-making. It had been so easy to say we’re the best in our industry, we don’t need to change, but that’s exactly how you disappear† (Charlie Rose, 2012). Although Cisco reported Q2 earnings more than Wall Street expected, Chambers warned of â€Å"a challenging economic environment.† Distinction Considering Cisco’s latest acquisitions (Intucell, Jan 2013; Solve Direct, March 2013) in mobile software and cloud services, there are signs of progress. However, it is unclear whether Cisco will succeed before Chambers retires in two to four years. His greatest achievement may be building software and services that are distinct from its existing core competencies and product line. Conclusion After in depth analysis of Cisco’s strategic management practices it is clear the company is not without its faults. People in the business community do not agree with some of the strategic decisions made by chambers and this has in some cases lead to a lack of confidence in the company’s progress. It’s also worth mentioning the workforce have ranked the company low in terms of ‘great place to work’ scores. Acquisitions prevent entrepreneurship, and  the lack of solid competition has meant that it is unclear whether Cisco would be able to cope with less of the market share if another big player offering cheaper products was to gain momentum. However, Cisco is a large company with a huge workforce, a substantial stockpile of cash and assets, strong share price and excellent revenue. So for the time being, Chambers and Cisco, have put their critics in their place. References Jim Duffy. (2009). HP’s 3Com acquisition: An inside look. Available: http://www.networkworld.com/news/2009/111309-hp-3com-haas.html?nwwpkg=hp. Last accessed March 2013. John Dix. (2009). HP puts the net pedal to the metal. Available: https://www.networkworld.com/news/2009/091409-haas.html. Last accessed March 2013. wikipedia. (2013). HP puts the net pedal to the metal. Available: http://en.wikipedia.org/wiki/List_of_acquisitions_by_Hewlett-Packard. Last accessed March 2013. wikipedia. (2013). Juniper Networks. 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In other words stay with the core business. Cisco, since 1984 have done just that. Their popularity grew and they implemented an FTP site to allow customers and developers to access a DB of bug information. By 1990 the company had gone public and had sales in the region of $70m with a net income of almost $14m. They had massive amounts of support centre calls, and supplied routers to the biggest players in the telecom world at the time. By 1992, ‘Fortune’s second fastest growing company in the US, had achieved sales of almost $340m, and had branched out to Europe and beyond. In 1993 they again showed strong customer focus by creating bug tracking systems, to support large corporation who used their products. In 1993 the company completed their first large scale acquisition of Crescendo communications for $95m and the following year New Port solutions for $93m. These were the first in a long list of acquisitions for Cisco and by the mid 90’s the company had a strong brand signature, excellent customer focus and a global footprint. By 1999, the company had revenues of over $12bn. This surge continued and in 2000 market capitalization grossed over $450bn. The company acquired over 40 companies over these 2 years, and demand was so high the production of equipment could not meet the customer demands. Customers began to look elsewhere, and at the same time the cracks in the IT market began to show. Cisco began stock piling, which was not in keeping with their practices, and in the ensuing recession, the company were forced to downsize, with 8500 job losses, and reported loses of almost $2.7bn, a complete reversal of the growth and fortunes up to that time. Figure 12 Figure 12 With John Chambers at the helm, the company drastically slowed down acquisitions, reduced the number of suppliers and resellers and began to steadily grow the company once again, and by 2009 emerged as a pioneer in data management with 75% of the world’s data being managed in some form by the company. One of the few companies to successfully withstand economic slowdown, Cisco, at present sits at number 64 of the fortune 500 list, with total equity of $51bn and 73k+ employees worldwide. Appendix B Earnings Growth Earnings Growth Acquisitions