Mexican Immigrants in the United States Essay

Abstract Choosing to focus on the Mexican Immigrant in the United States workplace will help to develop an understanding of how organizational decisions insure the acceptance and inclusion of the group with those of the organization’s in-group creating a unified work environment. Chao and Willaby (2007) theorized that everyone had their own vision of how the world works and acting upon it based on what they have perceived as being true; sometimes the visions of others are difficult to understand or accept, which can cause strife and alienation in the workplace. According to Adu-Febiri (2006) the responsibility of transformational leadership is to raise employee awareness; thus, beginning the journey for an all-inclusive and unified work environment. Mei and Russ (2007) identified that management’s objective should be to help organizational employees to establish a foundation of developing the core and cultural competencies that are critical to developing effective methods for advocating change and cultural blending. The results of this essay and the completion of employee interviews will help to heighten areas of self-actualization and ethnic and linguistic competencies of the author and all cultural groups she will be accountable. Mexican Immigrants in the United States Workplace Introduction Chao and Willaby (2007) advised that everyone had their own vision of how the world works and that everyone performs according to their perception of the right way to live as a part of that world. Greenwood (2007) contends there are differing perceptions of how the world operates creates complex challenges when working to blend differing beliefs toward a unified environment. The following literature review focuses on raising the level of diversity consciousness as it relates to Mexican immigrants in the workplace. Deaux, Reid, Martin, and Bikmen (2006) identified that the Hispanic sociohistorical perspective provided significant information reflecting an independent group that is dedicated to their families and struggling to survive in an environment that often resents them being in the workplace. Parrado and Kandel (2010) contend the Hispanic group is one of the fastest growing minority groups that has magnified the supply of low-skilled workers. The author also identified the group’s struggle with linguistic challenges as being what prevented many from achieving educational needs, which exacerbates the group’s equality in the workplace. Trends in Workplace Diversity Globalization, technology, and increased mobile ability have created diverse ethnic and linguistic challenges felt around the globe. Greenwood (2008) contended that some of the Hispanic group chose to move to the United States in pursuit of a higher quality of life; others made their decisions based on a lower cost of living and others came only to make an income that could be sent back to their homeland to take care of family left behind. Whatever the reason for the influx challenges to achieving unity in the workplace begin at the onset and will become more complex in nature as the number of ethnic and linguistic minorities continue to grow. The qualitative study performed by deCastro, Fujishiro, Sweitzer, and Oliva, (2006) theorized the negative workplace experiences of minority groups were inclusive of linguistic barriers, poor and unsafe working conditions, illegal methods of pay, work related injuries, and, finally, a consistent loss of jobs. Adu-Febiri (2006) theorized that workplace environments require the creation of opportunities for inclusion of all associated with the organization that matriculates all toward a true multicultural identity. Impact of Global Economy deCastro, et al (2006) provided that the impacts of a global economy are far reaching and have served to change the very fabric of cultural beliefs and community structures. The authors explain that many of the in-migrants see the expanding economies as a new and promising dimension of prosperity; while many of the native group believes it to be the portent of doom. For better and worse, everyone will have to learn about and from one another. Rizvi (2009) theorized the impact of a global economy as being realized in everyday activities such as processes at work, cultural interrelationships, capital, information exchanges, food and goods, and ideas. The global economy changed the dynamics of doing business with the enhancement of technology, communication, politics, and immigration. Adu-Febiri’s (2006) contentions of the global environment included the potential for cultural erosion due to a lack of human factor competency. As employment globalization grows so do the challenges for maintaining ethnic cultural norms in a manner that creates workplace inclusion. Chao and Willaby (2007) echoed Adu-Febiri’s thoughts when they asserted the globalization has created the challenge of the hiring of immigrants around the world; the authors maintain, â€Å"†¦has no geographic, political, or cultural bounds† (Chao and Willaby, p. 32, 2007). The authors further identified challenges of minority ethnic and linguistic groups have been to hold onto their cultural and linguistic makeup: Globalization has encouraged many to dress the way the other dresses and eat what the other eats, the result being a cultural homogenization process and the subtle emotions of ethnic cultural shame within groups. Chao and Willaby (2007) explained that reducing and ultimately eliminating the impact of cultural homogenization, the overt and more subtle forms of discrimination, ethnic and linguistic bias requires the expansion of diversity consciousness in the form of implicit cognitive awareness of management and employees. Discrimination Practices Carr-Ruffino (2005) explained that challenges to ensuring discrimination does not exist in the workplace requires a thorough understanding of the context it occurs, which requires high levels of self-awareness and a significant understanding of all ethnic groups in the workplace. Findler, Wind, and Mor Barak (2007) asserted that the ever growing challenge of diversity has worked to create demands that organizations determine and implement methods for effectively coping with workforce diversity. A number of theoretical viewpoints and studies identify common threads that include perceptions of inclusion or exclusion, fairness, social and organizational commitment, job satisfaction, and the overall sense of well-being. Another study performed by Krings and Olivares (2007) questioned the impact of ethnicity, job type, bias, and the commitment to interview discrimination practices from the employer perspective. The study resolved there was a higher potential for bias and discriminatory practices when there was a lack of diversity consciousness. Echautegui-de- Jesus, et al (2006) explained that working alongside an ethnic and gender group the native group perceives as being different from themselves creates challenges arising from imbalanced group powers. The Rubini, Moscatelli, Albarello, and Palmonari (2006) study compared the discriminatory effects of group power and social identification as it relates to linguistic discrimination. The study found higher levels of discriminatory practices were present when in-group participants responded in more positive way to other in-group members than they did with those considered the outside group. Another study completed by Echautegui-de-Jesus, Hughes, Johnston, and Hyun (2006) examined the effects of the employee’s psychological sense of well-being and job satisfaction as it relates to employee performance. Echautegui-de- Jesus, et al (2006) identified that minority groups often perceive themselves as being threatened with the loss of their interpretation of the world; the result being the loss of ability to achieve a sense of belonging, which brings into focus Robinson’s (2008) contention that identifying discriminatory practices often relies on perceptions of contentions of discrimination of the receiver. The need for higher levels of understanding diversity and the relationship between achieving a sense of well-being will be critical to the Hispanic group’s continued growth as a part of a global world. The studies and theoretical viewpoints reviewed provided a deeper insight to potential discriminatory practices arising from the diversification of the workplace. Ruane (2010) elucidated that as globalized employment continues to evolve and grow, talent pools will increase in a way that greatly enhances an organization’s ability to do business anywhere in the world. Taking advantage of the globalized potential requires management and employees raise the bar on diversity consciousness to create a sense of well-being for everyone in the workplace environment. Accommodating Diversity Ruane (2010) identified the need for accommodating diversity in the workplace and that it required training, strategies, and methods for managing diversity that created equality and a sense of well-being for everyone involved with working environment. A critical step toward identifying the level and expanding needs of diversity consciousness requires the identification of attitudes and implemented plans that will maintain and increase the common ground between all related to the workplace. The study performed by Greenwood (2008) stipulated the more a workplace environment diversifies the more difficult it would become for employees to maintain the sense of being a part of a unified work environment, which necessitates high levels of commitment to diversity practices on a consistent basis. Ruane (2010) theorized the importance of willingly and openly creating opportunities of inclusion begins with creating opportunity for shared diversity experiences that will increase diversity consciousness over time. The Nielsen and Fehmidah study (2009) identified the relationship between transformational leadership and the employees’ sense of well-being. Understanding that creating an effective diversity oriented work environment will help to ensure workers’ job satisfaction, inclusiveness, and sense of well-being continues to grow is not difficult; however, establishing strong leadership that is committed to ensuring prior underrepresented groups, such as the Mexican group requires strong diversity skill sets. Nielson and Munir’s (2009) article argued that the multifaceted workforce environment of the United States requires transformational management, laws ensuring equitable equality, and strong diversity training practices: Practices that encompass the perceived challenges of a Hispanic workforce. Most can agree the only way to manage diversity is to plan for it. Effects of Cultures in the Workplace Greenwood (2008) rationalized the world’s workplace environment is consistently changing and with each change comes different cultures, religions, sexual orientations, and ethnic groups; the objective is to welcome and support each group equally so as to create a new unified environment. Robinson (2008) provided that efforts to blend diverse cultures can have both negative and positive effects on operations, interrelationships, productivity, and the future growth of the company. Understanding differences between groups is a critical first step toward understanding how to make diverse cultures work together. The interviewing of three separate organizations helped to provide a better understanding of how both negative and positive effects of differing cultures can affect organizational outcomes. Greenwood (2008) explicated that cultural diversity affected each member of a work group; he also identified that challenges arising from linguistic barriers, differing work ethics, communication misunderstandings, and group power imbalances represented major trials to diversity. de Castro, Fujishiro, Sweitzer, and Oliva (2006) explained that diversity challenges require the commitment of management to ensure the positive effects outweigh the potential negative effects. Each of the three organizations interviewed believed strongly that it is only by creating flexible and inclusive work environments that organizations can reap the benefits of diversity in the workplace. Organizations that have planned for diversity understand that the right employee and management diversity planning and training will open the tap for contributions resulting from the perceptions of a multicultural workforce that is focused on one objective; the health and growth of the organization and the communities being served (Gabe Hooper, Personal Communication, January 20, 2011). Employer Attitudes The three organizations interviewed for the review work in the service delivery areas of healthcare. Each organization is focused on providing care and services to the communities under their care. The three interviewees chosen for the project presented diversity attitudes that were similar in their perceptions of cultural diversity. Each offered a definition of diversity that relates to being anything and everything associated with human life inclusive of the way an individual thinks, feels, dresses, communicates, and behaves. Each considered the value of diversity consciousness as being a critical component to the continued success of the organizations. However, each of the interviewees offered differing perspectives for overcoming culture challenges and the elimination of bias and discriminatory perceptions of all concerned. Some of the differences in perspectives are due to a noted lack of diversity within the organization; some of the differences are due to a lack of prior experience dealing with multicultural groups within the workplace. Appalachian Community Services (ACS) of western North Carolina offers strict protocols for agency professionals and support staff to ensure agency service delivery eliminates the potential for bias, prejudicial and any other discriminatory practices. Gabe Hooper the Program Manager for ACS was open to allowing a review and discussion of agency published agency policies as it relates to diversity initiatives of the organization. The agency policy offers stipulations inclusive of 1) a working environment that promotes dignity and respect, 2) the commitment to diversity and equality, good management practices that make sense, 3) the commitment to monitor and review on an annual basis, and 4) promises to address all forms of misconduct as defined in the organization’s code of ethics manual. After reviewing the agency standards for diversity management Mr. Hooper was asked why the agency did not seem to have a diverse base of employees within the agency. Mr. Hooper explained that ACS was largely a non-profit organization requiring high levels of professional credentialing to even be employed with the agency and that eliminated a number of the minority populace. Another reason provided was the fact the organization was based in rural environment, which does not lend well to the procuring and retaining of high quality and diverse professionals. Mr. Hooper stated, â€Å"The organization holds what comes their way and whether or not it balances diversity initiatives is secondary† (Gabe Hooper, Program Manager, Personal Communication, January 20, 2011). ACS professionals participate with one another and with their communities to create a strong sense of inclusion and well-being; the agency participates and supports community group histories and cultural celebrations. Hooper identified that everything experienced represents a new knowledge and it is brought into the work environment. ACS requires ongoing and consistent training for diversity related challenges that are becoming a part of the changing landscape; however, the organization has been unsuccessful with attracting minority groups to the organization. ACS has and enforces strong diversity protocols that are designed to ensure clients of the agency are not subjected to any forms of bias, prejudicial, or any other discriminatory practices and these same protocols are intended to serve the organization as the workplace culture evolves (Gabe Hooper, Program Manager, Personal Communication, January 20, 2011). Harris Regional Hospital offered by far the most culturally diverse workforce reviewed and diversity was represented at all levels of the organization. Janet Millsaps, Vice President of Human Resources explained the hospital’s objective for being ‘the place to work’ in western North Carolina. To fulfill the hospital’s objective requires the valuing, utilizing, and recognizing the unique potential of everyone working for the hospital. Millsaps explained that every new employee, no matter the position or department, is required to attend diversity-training sessions prior to stepping into their assigned positions and to attend annual seminars as they are presented. Finally, all employees must read and sign an agreement to uphold the organization’s code of ethics, which includes a number of diversity professional conduct requirements. The objective of the hospital is to achieve a 90 percent consumer success rating from each employee that serves that consumer. Diversity consciousness represents the biggest challenge to the hospital and it is taken very seriously. All employees are encouraged to share in community celebrations whether from the perspective of the resident Cherokee, Mexican immigrants, or any other group; employees are expected to share and respect each other’s cultural beliefs as well. Harris Regional takes a great deal of pride in their commitment to all staff members and encourages each one to share and promote ideas and concepts that will serve to unite the hospital with the communities it serves (Janet Millsaps, VP, Personal Communication, February 01, 2011). The third and final interview performed was conducted with the Hospice House Foundation of WNC, Inc. Michele Alderson, President defines the objective of the Hospice House as being to provide the right care, at the right time, in the right place, for the right patient, and on their terms. Alderson explains the development of a diversity-sensitive organization as being a part of the groundwork that is critical to being an accepted help facility in any community. Mrs. Alderson believes overcoming diversity challenges in western North Carolina represents a tougher obstacle than in other areas of the country. The diversity of her workforce is currently limited to three or four multicultural subgroups inclusive of Cherokee, Mexican, African American, and Caucasian groups that outnumber the other organizational groups. Hospice House encourages all of their employees to learn from one another and the clients they serve. Alderson also explained there is no official diversity training program in place to raise the organization’s diversity consciousness; however, the organization does have formal written codes of ethics that include organizational directives for ensuring equal treatment and respect for all employees of Hospice. Contribution of Policies and Procedures Each of the three organizations interviewed offered formal written policies and procedures’ for guiding their respective organizations toward a balanced multicultural environment. ACS enforces their guidelines, encourages their employees to collaborate with the communities being served, and provides continuing diversity education; however, the organization’s management has been unsuccessful with creating opportunities for hiring multicultural staff and professionals due to the rural environment being served. The Hospice House Foundation of WNC has formal policies put into place but those policies do not seem to function as a part of the organization’s processes, nor was there a lot of organizational diversity noted at the time of the interview. The organization does not offer ongoing diversity training to their employees or professional staff members; however, the organization is supportive of community event attendance. Finally, Hospice House does not have any initiatives for creating a balanced multicultural workforce, which would make the environment more difficult for the smaller subgroups as the environment changes. Again, Harris Regional Hospital was the most thorough and impressive organization interviewed as it relates to diversity sensitivity. The hospital’s commitment to diversity and individual needs is readily evident. The hospital’s staff is encouraged to not only acknowledge and respect the needs of one another they are provided critical training to accomplish organizational objectives. All staff is encouraged to share knowledge and to create opportunities for inclusion that brings with it a strong sense of well-being; the employees spoken with confirmed they liked working with the hospital. Real-Life Practices and Recommended Practices Each of the organizations interviewed reflected a level of understanding for the needs of diverse employee populations and the needs of multicultural communities. Each of the professionals interviewed understood the relationship between work place environments and employee satisfaction. Each of the interviewees expressed their organizations had the commitment levels necessary to ensuring employee inclusion and the elimination of power group struggles. Adu-Febiri (2006) revealed that creating shared experiences and maintaining the balance of unity in the workplace as being a significant component to achieving a well-blended work environment. Not one of the organizations has a plan that will help workers overcome linguistic barriers. Rizvi (2009) identified one of the more critical needs of minority groups were programs and training modules designed to help with eliminating linguistic barriers in the work environment. Harris Regional was the only organization that believes they were up to the challenge of globalization and the evolving impacts of ethnicity. ACS and Hospice House of WNC have put the right policies and procedures in place but have not created the initiatives to attract minority groups to the workplace, which also infers the organizational leadership is not in a position to offer transformational skills that would unify all employees (Ruane, 2010). Harris Regional has already experienced challenges arising from perceptions of discrimination and worked to resolve struggles relating to power groups. ACS and Hospice House are relying on the formal policies that were put in place at the time they opened operations, which means the leadership has not had the opportunity to see if what was established works in real-life practice. Robinson (2008) contended that without having experienced diversity the potential for implied segregation will be high as the organizations expand and new groups come seeking employment; both organizations agreed this would be a potential event with their organizations. Harris Regional has been afforded the opportunity to actively recruit multicultural groups; the other two organizations claim they have not had applicants apply for available positions and both agreed they had not pursued any recruiting initiatives. Harris Regional Hospital reflects transformational leadership and they are committed to high levels of minority representation, subgroup retention, staff skill development, and the inclusion of everyone as a unified group, which is in line with the thoughts presented in an article published by Dreachslin (2007). ACS and Hospice Home of WNC have only begun the journey toward achieving objectives of diversity consciousness but both organizations are committed to learning and welcoming the new workplace trends. Myths and Stereotypes of the Mexican Group. Nielson and Munir (2009) recognized that the opening of dialogue in the workplace that addresses cultural myths and stereotyping challenges can be difficult and complex as many do not even realize their part in promulgating myths and stereotyping. Much research inclusive of Nielson and Munir (2009) identify that cultural myths and stereotyping have been a part of the world likely since the beginnings of the human race and that myth and stereotyping is alive and well in the United States. People believe and then attribute that belief by applying it generally. An individual that bites into a bad apple offers the potential for creating myths that all apples are bad rather than taking the time to sort through each one. The Mexican group has not been an exception to stereotyping and myths. Aaracho and Spodek (2007) identified that many have perceived the Mexican American father as being cold, distant and the authoritarian, which often translates into an unwillingness to be an active participant with a community or even with their own children. The stereotype of being a cold, distant, and unforgiving individual can give way to stereotyping that all the male portion of the group is interested in what they might gain in the workplace environment rather than what they can give. The authors, Aaracho and Spodek (2007) also identified that women of the Mexican group are portrayed as being quiet, submissive, and dedicated to their husbands, which creates even further myths and stereotyping as it relates to the potential of the Mexican women’s abilities in the workplace environment. Mulholland (2007) identified challenges arising from the myth that the entire Mexican group was uneducated and thereby, qualified for only the most rudimentary jobs, which represented the jobs no one else wanted. Krings and Olivares (2007) noted there were higher levels of stereotyping when Mexican applicants applied for positions that required linguistic skills. Language, accents, and body language represents the foundation of all cultures and it represents self-identification. Bernstein’s (2007) thoughts provided that Mexican Americans have been made to feel their communication style is incorrect and somehow lacking; the group has been stereotyped by others believing the differences in language integrity means the group is less intelligent. Schwartz, Domenech, Field, Santiago-Rivera, and Arredondo (2010) identified the challenges of minority professionals entering the workforce without sufficient linguistic competency as having attributed to stereotyping and myths of cultural groups. Bernstein (2007) revealed that many of the in-groups were quick to point out the Mexican groups were in the United States to earn monies, send them home to be put toward economic security needs in Mexico, and returning themselves when enough had been earned. Introducing these types of myths and stereotypes creates challenges to the group in the workplace because it gives momentum to even more harmful forms of stereotyping; a minority group entering the workplace environment where myth and stereotyping is present and unchecked will be all but forced to suffer the consequences of belief systems they had nothing to do with creating. Effects of Stereotyping and Cultural Myths The effects of stereotyping and cultural myths can cripple the working environment. McDonald (2010) described the stereotyping and cultural myth challenges to minority groups as being representative of a cycle. First, the stereotypes and myths begin with the unknown and this is often followed by competition between groups; most often, the competition is in the perspective of an in-group rather than the minority group. The next step occurs as conflicts between groups arise and this is followed even deeper rooted and malignant stereotyping and myths. McDonald (2010) contended people learn and apply attributes to what they perceive and this represents only one of less dangerous effects of stereotyping and myth. The Mexican American populace struggles with becoming a part of the mainstream environment, whether in the workplace or at home. Aberson and Gaffney (2009) revealed that the struggles of minority groups can find its root in the forced isolation caused by stereotyping and cultural myths they feel has been made their self-image. The articles presented by Mulholland (2007) and Wolfe, Cohen, Kirchner, Montoya, and Insko (2009) agree that the effects of stereotyping do not stop with the Mexican American adults it is funneled down through children via their parents, which infers the damaging effects continue through the generations of Mexican American group. Bernstein (2007) pronounced that failing to address and education all cultural groups within the workplace will result in deeply seeded divisions between the workforce; between group competition that will cause anger and frustration for all involved, and it will continue growing and expanding until the minority group has been squeezed out of the environment entirely. Exposing and Discrediting Myths and Stereotypes. Carr-Ruffino (2005) provided that exposing and discrediting cultural myths and stereotyping require that everyone be listening and hearing one another. MacDonald (2010) identified that people achieved their understanding by believing their perceptions and that it influenced the way they think and behave thereafter. Individuals helped to realize how important it is to recognize the beginnings and nuances of cultural myths and stereotyping are more likely to change attitudes and behaviors in a way that compliments the whole rather than individual groups. Wolf, et al (2009) provided that a critical step to creating a unified workplace environment required tools and methods that will help everyone to learn to critically interpret different cultures, uncover embedded ideologies, and learn to become socially responsible employees and citizens. Schwartz, et al (2010) articulated the critical need for getting everyone to question the deeper meanings of all cultural groups within the workplace will enhance knowledge that will provide the potential for critical thought; thus, bringing awareness of individual beliefs and value systems that can be blended with others. Sarach and Spodek (2007) revealed the need for organizations to create shared experiences between groups supports acculturation and assimilation processes that are critical to creating a unified environment dedicated not only to the good of the organization but to the good of one another. Transformational leadership is also critical to safeguarding initiatives to expose and discrediting myths and stereotyping. Schwartz, et al (2010) identified that leadership that is positioned to help overcome cultural linguistic challenges such as the Mexican American that can speak English but cannot write it is able to overcome it without being subjected to the stereotyping that hinders self-esteem will help level the playing field between groups. Creating multicultural teams in a workshop that is designated as support groups is another method of bringing differing groups together to achieve a truer and more just understanding of one another. The objective of bringing everyone together in a workshop should be to make certain no one is alienated; it is also not about identifying the one committing a wrong he or she does not even realize as being done or said. The workshop is a great environment for working together to grow cultural awareness, agree on methods and strategies for overcoming the challenges, and unify to eliminate the harmful effects of cultural myths and stereotyping. A workshop is for getting to know one another, learning about differences, and asking questions about perceptions received. Debunking cultural myths and stereotyping requires a long-term commitment from the leadership and all employees of the organization to one another and it begins with implemented learning strategies. Conclusion As previously identified globalization and new technologies have created opportunities for connecting differing cultural groups from all over the world; the Mexican immigrant is no exception. Aberson and Gaffney (2009) identified the Mexican cultural group as being one of the fastest growing cultural groups in the United States. The authors also identified the group is being consistently challenged by some that wish the group to maintain a social stratification level that is far below that of an in-group in the workplace. Chao and Willaby (2007) provided that bringing unknown cultural groups into the work environment can serve to alienate those of the minority groups from those of the in-group; some of the exhibited behaviors have included everything from forced segregation to critically malignant forms of discrimination that can contribute to group elimination. Mei and Russ (2007) identified that the establishment and upholding of organizational policies that have been designed to protect immigran

Growth of Insurance Industry Post Liberalisation

GROWTH OF INSURANCE INDUSTRY – POST LIBERALIZATION INTRODUCTION : The journey of insurance liberalization process in India is now several years old. The first major milestone in this journey has been the passing of Insurance Regulatory and Development Authority Act, 1999. This along with amendments to the Insurance Act 1983, LIC and GIC Acts paves the way for the entry of private players and possibly the privatization of the hitherto public monopolies LIC and GIC. Opening up of insurance to private sector including foreign participation has resulted into various opportunities and challenges. CONCEPT OF INSURANCE : In our daily life, whenever there is uncertainly there is an involvement of risk. The instinct of security against such risk is one of the basic motivating forces for determining human attitudes. As a sequel to this quest for security, the concept of insurance must have been born. The urge to provide insurance or protection against the loss of life and property must have promoted people to make some sort of sacrifice willingly in order to achieve security through collective co-operation. In this sense, the story of insurance is probably as old as the story of mankind. LIFE INSURANCE : n particular provides protection to household against the risk of premature death of its income earning member. Life insurance in modern times also provides protection against other life related risks such as that of longevity (i. e. risk of outliving of source of income) and risk of disabled and sickness (health insurance). The products provide for longevity are pensions and annu ities (insurance against old age). Non-life insurance provides protection against accidents, property damage, theft and other liabilities. Non-life insurance contracts are typically shorter in duration as compared to life insurance contracts. The bundling together of risk coverage and saving is peculiar of life insurance. Life insurance provides both protection and investment. Insurance is a boon to business concerns. Insurance provides short range and long range relief. The short-term relief is aimed at protecting the insured from loss of property and life by distributing the loss amongst large number of persons through the medium of professional risk bearers such as insurers. It enables a businessman to face an unforeseen loss and, therefore, he need not worry about the possible loss. The long-range object being the economic and industrial growth of the country by making an investment of huge funds available with insurers in the organized industry and commerce. GENERAL INSURANCE : Prior to nationalizations of General insurance industry in 1973 the GIC Act was passed in the Parliament in 1971, but it came into effect in 1973. There was 107 General insurance companies including branches of foreign companies operating in the country upon nationalization, these companies were amalgamated and grouped into the following four subsidiaries of GIC such as National Insurance Co. Ltd. , Calcutta; The New India Assurance Co. Ltd. , Mumbai; The Oriental Insurance Co. Ltd. , New Delhi and United India Insurance Co. Ltd. , Chennai and Now delinked. General insurance business in India is broadly divided into fire, marine and miscellaneous GIC apart from directly handling Aviation and Reinsurance business administers the Comprehensive Crop Insurance Scheme, Personal Accident Insurance, Social Security Scheme etc. The GIC and its subsidiaries in keeping with the objective of nationalization to spread the message of insurance far and wide and to provide insurance protection to weaker section of the society are making efforts to design new covers and also to popularize other non-traditional business. LIBERALIZATION OF INSURANCE : The comprehensive regulation of insurance business in India was brought into effect with the enactment of the Insurance Act, 1983. It tried to create a strong and powerful supervision and regulatory authority in the Controller of Insurance with powers to direct, advise, investigate, register and liquidate insurance companies etc. However, consequent upon the nationalization of insurance business, most of the regulatory functions were taken away from the Controller of Insurance and vested in the insurers themselves. The Government of India in 1993 had set up a high powered committee by R. N. Malhotra, former Governor, Reserve Bank of India, to examine the structure of the insurance industry and recommend changes to ake it more efficient and competitive keeping in view the structural changes in other parts of the financial system on the country. Malhotra Committee's Recommendations The committee submitted its report in January 1994 recommending that private insurers be allowed to co-exist along with government companies like LIC and GIC companies. This recommendation had been prompted by several factors such as ne ed for greater deeper insurance coverage in the economy, and a much a greater scale of mobilization of funds from the economy, and a much a greater scale of mobilization of funds from the economy for infrastructural development. Liberalization of the insurance sector is at least partly driven by fiscal necessity of tapping the big reserve of savings in the economy. Committee's recommendations were as follows: †¢ Raising the capital base of LIC and GIC up to Rs. 200 crores, half retained by the government and rest sold to the public at large with suitable reservations for its employees. †¢ Private sector is granted to enter insurance industry with a minimum paid up capital of Rs. 100 crores. †¢ Foreign insurance be allowed to enter by floating an Indian company preferably a joint venture with Indian partners. Steps are initiated to set up a strong and effective insurance regulatory in the form of a statutory autonomous board on the lines of SEBI. †¢ Limited number of private companies to be allowed in the sector. But no firm is allowed in the sector. But no firm is allowed to operate in both lines of insurance (life or non-life). †¢ Tariff Advisory Committee (TAC) is delinked form GIC to function as a separate statuary body under necessary supervision by the insurance regulatory authority. †¢All insurance companies be treated on equal footing and governed by the provisions of insurance Act. No special dispensation is given to government companies. †¢Setting up of a strong and effective regulatory body with independent source for financing before allowing private companies into sector. COMPETITION TO GOVERNMENT SECTOR: Government companies have now to face competition to private sector insurance companies not only in issuing various range of insurance products but also in various aspects in terms of customer service, channels of distribution, effective techniques of selling the products etc. privatization of the insurance sector has opened the doors to innovations in the way business can be transacted. New age insurance companies are embarking on new concepts and more cost effective way of transacting business. The idea is clear to cater to the maximum business at the lest cost. And slowly with time, the age-old norm prevalent with government companies to expand by setting up branches seems getting lost. Among the techniques that seem to catching up fast as an alternative to cater to the rural and social sector insurance is hub and spoke arrangement. These along with the participants of NGOs and Self Help Group (SHGs) have done with most of the selling of the rural and social sector policies. The main challenges is from the commercial banks that have vast network of branches. In this regard, it is important to mention here that LIC has entered into an arrangement with Mangalore based Corporations Bank to leverage their infrastructure for mutual benefit with the insurance monolith acquiring a strategic stake 27 per cent, Corporation Bank has decided to abandon its plans of promoting a life insurance company. The bank will act as a corporate agent for LIC in future and receive commission on policies sold through its branches. LIC with its branch network of close to 2100 offices will allow Corporation Bank to set up extension centers. ATMs or branches with in its premises. Corporation Bank would in turn implement an effective Cash Flow Management System for LIC. IRDA Act, 1999 Preamble of IRDA Act 1999 reads ‘An Act to provide for the establishment of an authority to protect the interests of holders of insurance policies, to regulate, to promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. Section 14 of IRDA Act, lays the duties, powers and functions of the authority. The powers and functions of the authority. The powers and functions of the Authority shall include the following. †¢ Issue to the applicant a certificate of registration, to renew, modify withdraw, suspend or cancel such registration. †¢ To protect the interest of policy holders in all matters concerning nomination of policy, surrender value f policy, insurable interest, settlement of insurance claims, other terms and conditions of contract of insurance. †¢ Specifying requisite qualification and practical training for insurance intermediates and agents. Specifying code of conduct for surveyors and loss assessors. †¢ Promoting efficiency in the conduct of insurance business †¢ Promoting and regulating professional regulators connected with the insurance and reinsurance business. †¢ Specifying the form and manner in which books of accounts will be maintained and statement of accounts rendered by insurers and insurance intermediaries. †¢ Adjudication o f disputes between insurers and intermediates. †¢ Specifying the percentage of life insurance and general and general business to be undertaken by the insurers in rural or social sectors etc. Section 25 provides that Insurance Advisory Committee will be constituted and shall consist of not more than 25 members. Section 26 provides that Authority may in consultation with Insurance Advisory Committee make regulations consists with this Act and the rules made there under to carry the purpose of this Act. Section 29 seeks amendment in certain provisions of Insurance Act, 1938 in the manner as set out in First Schedule. The amendments to the Insurance Act are consequential in order to empower IRDA to effectively regulate, promote, and ensure orderly growth of the Insurance industry. Section 30 & 31seek to amend LIC Act 1956 and GIC Act 1972. IMPACT OF LIBERALIZATION While nationalized insurance companies have done a commendable job in extending volume of the business opening up of insurance sector to private players was a necessity in the context of liberalization of financial sector. If traditional infrastructural and semipublic goods industries such as banking, airlines, telecom, power etc. have significant private sector presence, continuing state monopoly in provision of insurance was indefensible and therefore, the privatization of insurance has been done as discussed earlier. Its impact has to be seen in the form of creating various opportunities and challenges. Opportunities 1. Privatization if Insurance was eliminated the monopolistic business of Life Insurance Corporation of India. It may help to cover the wide range of risk in general insurance and also in life insurance. It helps to introduce new range of products. 2. It would also result in better customer services and help improve the variety and price of insurance products. 3. The entry of new player would speed up the spread of both life and general insurance. It will increase the insurance penetration and measure of density. 4. Entry of private players will ensure the mobilization of funds that can be utilized for the purpose of infrastructure development. 5. Allowing of commercial banks into insurance business will help to mobilization of funds from the rural areas because of the availability of vast branches of the banks. 6. Most important not the least tremendous employment opportunities will be created in the field of insurance which is a burning problem of the presence day today issues. CURRENT SCENARIO : After opening up of insurance in private sector, various leading private companies including joint ventures have entered the fields of insurance both life and non-life business. Tata – AIG, Birla Sun life, HDFC standard life Insurance, Reliance General Insurance, Royal Sundaram Alliance Insurance, Bajaj Auto Alliance, IFFCO Tokio General Insurance, INA Vysya Life Insurance, SBI Life Insurance, Dabur CJU Life Insurance and Max New York Life. SBI Life insurance has launched three products Sanjeevan, Sukhjeevan and Young Sanjeevan so far and it has already sold 320 policies under its plan. CONCLUSION : From the above discussion we can conclude that the entry of private players in insurance business is needful and justifiable in order to enhance the efficiency of operations, achieving greater density and insurance coverage in the country and for a greater mobilization of long term savings for long gestation infrastructure prefects. New players should not be treated as rivalries to government companies, but they can supplement in achieving the objective of growth of insurance business in india. THE GROWTH OF INSURANCE INDUSTRY – POST LIBERALIZATION Prepared by :ashish

Sports Day

Sports Day Sports Day Sport day is took placed in every school every year, seemed like just an ordinary day when all students come and do some activities together, but there are more interesting things when you take a look of sport day deeply. Fun, harmony, friendship between the senior and the junior are able to be seen from that day, Sport day. My duty was to do the equipments. My friends and I had to do try to sew it as quick as possible. One of my friend said we worked like the machine.Many of my friends came to help though it was not on their responsibilities. Finally, we had done. As a result of cooperation, everything can be done successfully. It made me and my friends spend the time with each other more and more. One day before sports day, many of my friends and I worked together until night. I have never gone home late like this before. Although very tired, I concentrated on my work. It made me and friends fun, have much more unity in the class, have the friendship between o ther classes. Releted essay –  An Empty Purse Frightens Away FriendsAnd my impression on this activity is when I saw everybody help each other do their work and in the real sport day that I saw everybody try to do their best. It’s very impressed me. These sport day activities gave me many lessons such as, make me has more patience, make me have to talk to each other before do everything to get the success work, make me have to do the work against time but the work must be in high quality, and the last it’s taught me that although we win or we lose, it’s doesn’t matter if we do our best.There are many people who think that sport day is ridiculous. However, if you don't come and see how superb the sport day is, you will never feel such a great experience like this. Thanks to Triamudomsuksa School for giving me and my friends this wonderful day. I am proud to be a part of this event. I will consider this day as the most memorable day in my life. Sports Day COMPETENCY LEVEL TEST Date: CHEMISTRY Grade:State true or false. The minimum number of carbon atoms in a ketone molecule is two. (1) 5. How does the number of valence electrons vary on moving from left to right in a period? (1) 6. The horizontal rows in a periodic table are called as   (1) 7. Name the property of carbon element responsible for a large number of compounds having carbon. (1) 8. On what basis did Mendeleev arrange the elements in his periodic table? On what basis are they arranged now? (2) 9. Three elements A,B & C have electronic configurations (2,7) ; (2,8,1) & (2,8,7).Which pairs of elements belong to the same group. Which of these is a metal. (2) 10. Five elements A,B, C, D & E have atomic numbers 2,9,11,12 &20. respectively. (i) Which pair of elements are in the same period? (ii) Which of these belong to same period? (2) 11. State two characteristics of homologous series . (2) 12. State any two changes in the properties of I group elements of modern periodic tabl e, if we move downwards. (2) 13. How does metallic character varies in a group and a period? (2) 14. What are structural isomers? Write two structural isomers of butane.

Memo about ap stylebook Essay Example | Topics and Well Written Essays - 250 words - 1

Memo about ap stylebook - Essay Example For example, all distances should be in figures, using ‘5 miles is better than using five miles. Making this change will make the sentence more appealing to the reader unlike when it is in words. There are some words that are treated as two words, yet they seem better when they are written as one. ‘Under way’ appears better and has a good meaning when it is written as one word; ‘underway’. Additionally, using a general term such as ‘partners’ seems to be better and respectable when referring to a married couple. Husbands and wives is provocative and when it is pronounced it sounds as an offence to the one who is saying it and the people who are listening. The terms ‘husbands’ and ‘wives’ should not be used to refer to the same sex couples. The AP Stylebook should consider doing away with the term ‘illegal immigrant’. This is a loaded term and it is the action of migration that is illegal and not the person. The stylebook should instead advice clearly the action of illegal migration, because it is the controversy and not the person that is explained. Homosexuality is another word that brings many debates. The AP Stylebook describes homosexuality as a ‘sexual orientation’. Revising it to a ‘sexual preference’ sounds better because, preference is what someone likes to do while orientation is simply what you are. There is a need to cover social media guidelines in the AP stylebook. With the increase in user generated journalism pieces, the stylebook is supposed to show how they can secure and authenticate photo captions and some video scripts. AP should recognize Skype, Google Hangout, and flash mobs. It is important for them to develop a platform for communication with the people so that they may tell them and answer some questions or any other revisions made to the stylebook. Many people especially traditionalists have disagreed with some controversial changes that have been made in the past. Communicating

Why did so many people emigrate from Ireland to Britain and the USA Essay

Why did so many people emigrate from Ireland to Britain and the USA between 1850 and 1914 - Essay Example However, all such factors shall be discussed later on in the essay as we progress with it. All such emigrants moved along to various regions of the world, with America and Britain being most prominent ones as people believed that going to such counties would enable them to lead a superior lifestyle. Research has shown that somewhere around sixty five million to seventy five million people around the globe come from an Irish decent. These figures themselves speak of the mass scale emigration that took place in the country during the eighteenth and the nineteenth century. What is rather ironic is the fact that America has been home to the largest Irish community abroad. It has been observed from statistics alone that around thirty six million Americans have an Irish background or they claim to have their ancestry from Ireland. What is more shocking however is the fact that this figure of thirty six million people is more than nine times the population of Ireland itself. Research into f acts has shown that one of the main reasons which resulted in such mass scale emigration was the Great Irish Famine. This Famine began in 1846 and went on for a period of six years to 1852 (IRELAND, 1997). Just between 1815 to the Great Famine period, somewhere between eight hundred thousand to a million people left Ireland for settling in North America. It shall also be noted here that the eighteen hundred thousand emigrants who left Ireland between 1845 and 1855, the period that coincided with the pre and post Great Famine period, came from a much economically lower status as compared to those who had moved to the United States of America prior to that period. This reason behind this mass scale movement isn’t much difficult to point out as the harsh conditions brought by the drought were enough motivation in itself for the Irish people to leave the country in search of a better future (DEIGNAN, 2003). This emigration however, was not only limited to the pre and post famine period. This emigration went on till around middle of the nineteenth century as the domestic economy of Ireland failed to perform well after the great and deadly Famine. Other reasons which can be deemed to have contributed to this movement include the shift in methods of farming to tillage based from pasture. Also, the Irish law was designed in a very peculiar manner as it permitted inheriting of the parents’ farms not by all of their sons, but only the eldest. This law was of extremely non-impartial nature and after the famine there already weren’t many opportunities left for the younger sons of a family (BIELENBERG, 2000). Therefore a lot of people also left the country to go somewhere where laws were equal and where their future could have been safe and secure. Major emigration of the Irish people owing to the Great Famine witnessed a rather shocking drop in Ireland’s population. Statistics have shown that the country’s population went on to stand at just forty four hundred thousand in 1911 in comparison to sixty five hundred thousand in 1851 and roughly around ninety hundred in the 1840’s. Other than the Great Famine, there were also various other reason which contributed to the large scale emigration that took place in the country. One of the main reasons was that the demand for agricultural workers had fallen dramatically owing to the rough conditions of the agricultural land post famine. It shall also be mentioned that the wage rates in the United States of America were much higher in comparison to Ireland and that also caused a strong desire in the Irish people to move there and make a healthy livelihood for their families. Another factor which

Esl423 8 reflection journal Essay Example | Topics and Well Written Essays - 500 words

Esl423 8 reflection journal - Essay Example s that lay ahead in the actual working environment while the latter gives us confidence that as teaching techniques evolve with the help of ideas from experts, it has become better adapted to the rapidly changing environment of our classrooms. Inputs from the first module were about the legal, historical and educational foundations of the Structured English Immersion (SEI). America has always been a multicultural nation that it is surprising to learn how relatively new the SEI concept is. This only tells us that there is still so much room for development which educators need to be constantly updated about. It’s good to know that we can always turn to academic internet sources maintained by experts for the needed information, including models and the latest findings in language research. Books (including e-books) and websites dedicated to helping teachers in the profession also abound. For example, there are books that give methods on making basic math easier for kids. With my knowledge from ESL 423, I can slightly modify such methods so that academic English is reinforced while content learning is unaffected, if not improved. Teachers can also make use of multimedia such as PowerPoint presentations and video clips to improve learning (qtd. in Stansbury, 2008). Really, with a little creativity, there are so many resources a teacher could use in this age of information. This makes the job easier and enjoyable for us that I’ve become highly motivated to further develop my skills in ESL instruction in a multilingual/multicultural classroom. This course, no doubt, has enhanced my professional abilities by introducing the standards that teachers are required to follow to ensure quality instructions. I believe this helps teachers greatly to gauge students as well as their own efforts. My students’ failure is also my own failure and with the standards as my guide, I can properly address which areas need improvement, both on my students’ and my part. Also

HCM621-0804A-01 Ethics, Policy, and Law in Health Care Management - Essay - 2

HCM621-0804A-01 Ethics, Policy, and Law in Health Care Management - Phase 1 Discussion Board 2 - Essay Example JCAHO is an independent, nonprofit organization and they carry out quality assessments at 5,000 US hospitals and 6,000 US health care facilities every three years. (AmericanHospital.com, 2008) It would be in the invested owner’s best interest to attain accreditation regardless because any reimbursement from government entities such as Medicare or Medicaid will still require regulation of care. It also gives a certain feeling of trust to know that the hospital has passed stringent rules on healthcare. The for-profit corporation is liable for any fiscal or legal issues, and not an individual. As a for-profit organization, the hospitals best interests are usually managed by board of directors and act in the interest of shareholders (if stocks are issued) or the invested owners. A big advantage of for-profit health care is their ability to respond to the demands of patients and employers. â€Å"†¦a large, nonprofit, staff-model health plan grew rapidly in southern California in the late 1960s and early 1970s as a result of affordable prices, its leaders froze enrollment for several years because of limited capacity. A competitively driven, for-profit, publicly traded organization would have found new capital and expanded its capacity to meet the needs of consumers.† (Hasan, 1996). Taking care of patients in private practice without the risk of influence from a government entity allows doctors and hospital partners design and manage the best quality delivery system they can assemble. Interestingly enough a for-profit hospital can receive Medicare subsidies (with proper accreditation), increasing their ability to profit. But the disadvantage to the for-profit is deeper scrutiny from the public and media for corporate financial scandals. Another disadvantage is that to retain quality medical care (i.e. trained doctors) the total costs are higher. (Woolhandler,

Individual Privacy vs. National Security Research Paper

Individual Privacy vs. National Security - Research Paper Example The importance of individual privacy vs. national security has attracted the interest of researchers from various academic fields. This is a broad research topic that requires to be narrowed down for it to become a manageable research topic (Sole, 2010). Narrowing down the topic to a manageable level was carried out in the first phase of the project. The second phase of the research involved discovering or finding relevant sources of information for the research topic. By an analysis of the research problem, the scope of the research project was established. The analysis of the problem established that the recent terrorist threats have contributed to the debate of personal privacy vs. national security. These findings led to the claim that national security could only be realized with limited flow of information. The research project aimed at establishing whether the proposed antiterrorism measures will compromise individual privacy. This paper therefore, analyzes how enhancing natio nal security has compromised individual privacy. The paper follows directly from the previous work on individual privacy vs. national security. Fighting terrorists are the responsibility of the federal government; however, the government has responsibilities towards its people. For the government to achieve an appropriate balance between the two responsibilities, it needs to consider their long-term implications. The federal government also needs to establish which issue is of considerable importance to the country. The assessment phase of the project proved that invasion of people’s privacy concerned the people more than issue of national security. This did not imply that people were ignorant on the security concerns in the country and about the recent terrorist threats. People have direct interests in individual privacy as compared to their interest on matters of national security. Unlike matters of national security, invasion of personal privacy has direct impacts on the p eople. During the assessment phase of the research project, it was established that the federal government considered national security more valuable than people’s privacy. This implies that the government lacked concerns over long-term implication of invading personal privacy in expense of fighting terrorism. According to the openness, privacy, and national security debate bulletin, the government needs to reconsider its actions (Hardin, 2003). It was established that the government took extreme measures to fight terrorism after the September 11, 2001 attacks. The government, therefore, needed to reconsider its actions by enhancing people’s privacy despite the immediate needs to fight terrorism. This is because the measures taken by the government to fights terrorism had more negativity and less positive impacts. The measure taken by the government was also unrealistic since terrorism cannot be eliminated overnight. The people are more beneficial to the country than n ational security. This is because national security is meant to improve people’s livelihood and, therefore the government should enhance national security according to the interests of the people. Personal privacy is of interest to the people and, therefore invasion of personal privacy should be of interest to the federal government. The American government has a duty to the people as well as the country. The government also has international objectives that the country must achieve. The position

Phase 2 Individual Project Assignment Example | Topics and Well Written Essays - 1500 words

Phase 2 Individual Project - Assignment Example Main Responsibilities of Each Role End User The role of end users especially in information technology (IT) system based development is much vital as they are considered to be the ultimate users of new software on a daily basis. It is the end-users who are aware of the data present in the legacy systems. The primary responsibility of the end-users is to directly interrelate with different computer workstations or terminals in order to effectively conduct their assigned work. The end-users are quite able to differentiate between the formal description and constraints among others for performing their work along with informal practices. Furthermore, they are able to convey relevant valuable information to the users’ representatives relating with the process. In addition, end-users may require participating in the activities concerning Quality Assurance as well. Most importantly, periodically developing functional departments is also viewed to be the other prime responsibilities of the end users (Damodaran, 1996, pp. 363-377). Business Analyst The primary function of the business analysts is to develop means in order to cultivate confidence and respect from both the IT and the business aspects of the organizations. A business analyst is required to understand the stakeholders, employees and customers and their needs ought to be served effectively. Contextually, the most frequent responsibility of the business analysts has been viewed to resolve various problems concerning with the processes and the functions within the organizations while dealing with legacy system development. Furthermore, business analysts are required to combine various functions in order to utilize effective technologies for developing the overall operational procedures. A business analyst is liable to monitor the new IT system after its full implementation (Hernandez, 2012, pp. 1-4). Team Leader The role of a team leader is extremely crucial relating to the aspect of project management . Accordingly, it is necessary that a team leader is flexible in managing his/her team members for successfully completing a project. It has been ascertained that a team leader should perform his or her tasks based on the situations rather than being rigid in following his/her own managing style. Moreover, team leaders should be capable of motivating and encouraging his/her project team. The team leader should be able to control the behavior of his/her project team and support them while performing their respective tasks. The team leader should also be able to promote healthy affiliation among the team members and promote effective communication in order to smoothly achieve the organizational goals. It is worth mentioning that smooth completion of a project largely depends upon the activities that perform by an efficient team leader (Roman, 2011, pp. 1-5). Skills Necessary for the Respective Positions Skills Necessary for End-Users Concerning with end-users skills, high level compet encies and experience are required for adopting as well as exploiting effectual decisions. Moreover, the end-users must possess proper knowledge, know-how and power in order to shape the improvement in accordance with the needs of the organizations. At the same time, the end-users should have the willingness and enthusiasm during the course of the IT development in order to seek

Need to Invent an Appropriate Technique to Extract Hydrogen from Research Paper

Need to Invent an Appropriate Technique to Extract Hydrogen from Non-polluting Sources - Research Paper Example Human activities are increasing the natural levels of those gases, by emitting carbon dioxide from the burning of fossil fuels such as coal, oil, and natural gas; methane and nitrous oxide produced by agricultural activities and changes in the use of land use; and by some industrial gases that do not occur naturally but are long-lived in the atmosphere. Emissions of poisonous gases from vehicles are also constantly polluting the air. In fact, a large proportion of harmful gases in the atmosphere are being emitted from the vehicles. With the development of civilization, the rate of transportation has also increased. Today, most of the vehicles are run by fossil fuels, like petrol, diesel, coal etc. the burning of these fuels emit hazardous gases in the atmosphere and enhances the risk of global warming. In order to protect the Universes from the curse of global warming, the immediate need is to reduce the emission of those gases that are responsible for global warming. In order to red uce the emission level, the prime requirement is to discover alternative sources of energy other than fossil fuel. The vehicles, therefore also need to be run by the energy whose production does not need petrol, diesel or coal. Scientists are experimenting with several alternatives to the traditional source of energy for the vehicles. Fuel cell cars seem to be an appropriate solution to the problem of global warming.   In the last twenty years, scientific knowledge has led to the understanding that anthropogenic, human-made actions were responsible for the changes in global climate. Those changes are a consequence of the emission and accumulation of greenhouse gases on the atmosphere.  

Fiduciary Responsibility Research Paper Example | Topics and Well Written Essays - 750 words

Fiduciary Responsibility - Research Paper Example It reveals how the board can busy themselves with governing its corporate, financial planning by controlling budget values and not the budget members. In addressing the thesis statement of comparing and contrasting Corporate Fiduciary Responsibility and Sarbanes-Oxley Compliance, we will draw attention to the significant of the two concepts. Sarbanes-Oxley Compliance Verse Corporate Fiduciary Responsibility Holt (2008) indicates that the Sarbanes –Oxley is based on the legislative and administrative, whereas corporate fiduciary responsibility, although, based on the statutory, it is established from the equity and is created by judges. According to Kieff and Paredes (2010), the corporate fiduciary responsibility under the state law practices has fluid standards and duties based approach. Whereas Sarbanes –Oxley adopt a rule based approach to corporate governance. According to Hopkins (2011), fiduciary responsibility requires board members of exempt corporate to be objec tive and should act for its excellent and betterment, rather than for their personal benefit. Sarbanes –Oxley indiscriminately imposes significant compliance cost on the corporate due to the inflexible rules that are applied to corporate regardless of the situation. According to Kieff and Paredes (2010), fiduciary relationship arises in the context of complex and constantly evolving long-term arrangements. Thus, do not provide themselves with easy, clear line rules or detailed regulations. However, Sarbanes –Oxley does not involve the complexities of the corporate environment. It deals with setting wide standards and allowing corporate a chance in determining how best to comply with those standards. The occurrence of corporate misconduct provides essential insights about the manner that board members demonstrate compliances with their fiduciary responsibility. Kieff and Paredes (2010) indicate that trustee responsibility is limited in that the fiduciary who agrees to t ake control of plan assets may appoint an investment manager. If the investment manager is appointed, the trustee is not accountable for that the investment manager’s acts. Meanwhile, he or she is not under any obligation to invest or to manage any plan asset that is subject to the management of the investment manager. Moreover, a plan may expressly provide that the trustee is subject to follow the ways of listed party who is not a trustee. According to Kieff and Paredes (2010), a trustee is subject to proper directions of that named fiduciary. Since this duty does not relieve the trustee from determining whether the direction of the named fiduciary is prudent, it does not considerably limit a trustee’s responsibility. In additional, where plan assets are detained by more than one trustee, trustee is only accountable for an act of a trustee own trust. Meanwhile, co trustees may agree to allocate responsibilities, obligations and duties among themselves in case such agr eement is authorized by the trust instrument. According to Kieff and Paredes (2010), a trustee will not be accountable for a loss to the plan arising from the acts of another trustee to whom responsibility has been allocated. However, in the Sarbanes –Oxley the corporate are seeking to reduce the cost of ongoing compliance while maximizing benefits (Holt, 2008). Meanwhile, the act does not authorize corporate to change audit firms periodically, but recommends essential

Global Citizenship Essay Example for Free

Global Citizenship Essay As far as we know, many people throughout the world face different issues such as global warmth, pollution of environment, gap between wealth and poverty, discrimination, suffering of HIV/AIDS and so on. Therefore, more and more people are attracted to join in one community and solve global problems together. Nowadays, many people can be considered as citizens of our planet, or as Global Citizens. The main goal of Global Citizens is to create such conditions and solutions to problems in order to make the world around them a better place. All of them tend to have some specific qualities. I know enough people, who possess them and inspire me more to be a Global Citizen. Initially, I consider myself as a part of Global Community and as a Global Citizen because I try to help people that need it. For me, being a Global Citizen means not only enjoying our rights, but also bearing responsibilities and taking care for surrounding people and environment beyond one’s nation or territory, in order to create a virtuous society in the world. Open-mindedness and willingness to commit good deals are the main qualities, which Global Citizen should have. Every person has different types of personality, some of them can make good teachers, some good creators, other good workers, and so on. Although they have different qualities and abilities, they are part of one community and take some responsibilities for surrounding people for making the world little bit better. Therefore, they can be considered as Global Citizens. They are joined by qualities such as kindness, love to every single person on the world, motivation to hard work, and responsibility for humankind. In addition, Global Citizens should have perseverance because the mission of being responsible for human beings faces many obstacles. Accordingly, Global Citizens should wish to improve lives of others and possess kindness, responsibility, and persistence. Global Citizens are not isolated from the world and think not only about themselves. People start to be such Citizens when they start to commit good deal toward strangers, who need help. No matter if they act alone or in teams, they are still Global Citizens. I have met many people that act as Global citizens. For instance, I know people, who deal with children that have oncologic diseases, or people, who take some activities to decrease the level of HIV/AIDS sufferers, or people that engaged in charity, or other that engaged in special communities, which deal with different issues in society. I, firstly, admire with my grandmother, who have small business, but always take time and money to engage in charity for orphanage. In spite of facts that she is retired and care about her children and grandchildren, she still work hard, has patience, and has desire to help other people, to make their lives better. This example proves that anyone can take even little action toward better humanity’s life and unintentionally become a Global Citizen. I believe, I will follow my grandmother’s example because from my childhood I am kind, responsible and strive to help people. I always wished, nobody should be upset. Therefore, when I saw sad person, I approached to him/her, tried to understand situation and attempted to help. Later on, I become part of different communities such as School Parliament, International Organization â€Å"Dance4Life†, Students’ Community â€Å"Enactus†, and some others. Most of my time I spent in School Parliament, so I will tell more about its activities. This little school organization took responsibilities for almost all events in school and some activities outside it. We regularly took part in charity for orphanage, support disabled people of our school, entertained people that had oncologic diseases, and conducted some events. We helped one family to collect some amount of money to child’s operation by selling some ribbons and conducting few times charity events. It was one of the biggest deals that we did in school time ourselves. After pupil’s operation, his parents thanked us and appreciated our activities. Thus, as studying in high school we started to participate in solving some problems outside of our lives, to help others, to improve surrounding people’s lives and performed as Global Citizens. Thereby, everybody can become a Global Citizen despite age, gender, and region. To be a Global Citizen means to take actions and fulfil some duties in order to improve someone’s life. Global Citizenship should not be focused on scale of an action because helping people starts from little steps, from helping even one unknown person. Therefore, most of people, who are helping others that need a support, can be considered as Global Citizens. The majority of these human beings understand that they somehow may effect on people, who live on the other side of the Earth. Thus, they think broadly and care about surrounding people and nature.

A Strategic Analysis Of Tesco

A Strategic Analysis Of Tesco This report is set out in order to evaluate the marketing strategy adopted by Tesco along with how they gain a competitive position internationally through globalisation. Under the findings of this report the approach which will be evaluated will be related to Porters competitive positioning. This will be used to show how Tesco gain a competitive advantage over their rivals such as Asda using the generic strategy. The five force framework will also be investigated to anaylse the competition it faces and finally how Tesco segments there market, identifying the gaps available to develop. In order to write this report a collection of different sources were used. These sources included books, journal articles, media articles, websites, Tescos annual reports and information from Tescos website. The information gained from these sources helped to discover how Tesco manages to gain the competitive advantage in their industry. It has also helped to focus the importance of successful competitive positioning with models from Porter to establish the position in the minds of the consumer. 1.0 Introduction This report includes a theoretical model which will reflect the practice of Tesco in relation to strategic analysis. It will look at the competitive positioning approach and the models/concepts used by Porter to gain a competitive advantage over Tescos rivals. By doing this it will show what other companies in the industry would need to do in order to take over the competitive advantage that Tesco have. Strategy is based on the long term of a business and is the direction and scope of the organisation. It aims to achieve advantage in a changing environment through its configuration of resources and competences (Johnson et al, 2008). There are generally three different levels of strategies associated with organisations. The top level is known as the corporate level strategy which is alarmed with the overall purpose and extent of the organisation. The second is the business level strategy which looks at particular markets and how to compete successfully in them and the third level is the operational strategies which look at how the organisation delivers successfully (Johnson et al, 2008). 2.0 Findings 2.1 History of Tesco Tesco began when Jack Cohen first opened a market stall in the East end of London in 1919 and since then began trading in 1924. This shows that Tesco has been serving customers in the UK for the best part of a century. Today, they class themselves as much more of a weekly shop as they have introduced new services, products and ways to shop all driven by their Every Little Helps philosophy (Tesco, 2008). In the last decade Tesco has grown their business to become the worlds third largest grocery retailer by determining an excellent level of service wherever they operate. They have a strategy for growth which is based in five parts. These include core UK business, non food, international, retail services and the community (Tesco, 2008). Tescos market share is still growing just short of 7% although that is not as fast as it was. This is because at present the economy is in a recession and so customers are changing their habits (Leahy, 2008). According to the Institute of Grocery Distribution (IGD), the UK food industry group predicts that Tesco will grow at a faster rate than Carrefour in the coming four years. Tescos growth will be spurred by international expansion in markets such as China, the US and India (Hall, 2008). This means that Tesco who are currently the UKs biggest retailer will leapfrog Carrefour by 2012 to become the second largest retailer in the world after Wal ­Mart (Hall, 2008). Within the UK, Tesco employ over 280,000 employees and have over 2,100 stores. Tesco stores have four different formats (See Appendix 1). These are the express stores which sell a range of up to 7000 products with the first express store opening in 1994. The metro store first opened in 1992 bringing the convenience of Tesco to town and city centre locations. The Tesco superstores began in 1970s and in recent years these stores have been introduced to a number of new non ­food ranges such as DVDs and books. Finally the Extra stores have been operating from 1997 and offer the widest range of food and non ­food lines. These products range from electrical equipment to homewares, clothing, health and beauty and seasonal items such as garden furniture. Along with food and non ­food products in different stores, Tesco also offers retailing services (See appendix 2). Tesco Personal Finance (TPF) has the choice of 26 products within their successful market. These range from their savings accounts and credit cards to car and travel insurances. Tescos strategy for growth (see appendix 3) has been well established and consistent which has allowed them to expand into new markets. The rationale for the strategy is to broaden the scope of the business to enable it to deliver strong sustainable long term growth (Tesco Strategy, 2008). 2.2 Competitive Positioning Competitive positioning emphasizes the importance of the environment and provides useful tools for analysing the business in the context of its industry (Campbell et al, 2002 p.298) Competitive positioning is the degree of difference in choice of product or service against the competitor (Lynch, 2003). The competitive positioning approach used by Porter, argues that the position of an organisation is successful if it places itself towards the environment (Campbell, 2002). Positioning within any organisation is achieved through the minds of the consumer and this is what enables businesses to gain a competitive advantage over their rivals (Darling, 2001). A strategic fit is used between an organisation and the environment which again is a way to gain competitive advantage. This is based on Porters Generic Strategy Framework (See appendix 4) (Campbell et al, 2002). 2.3 Identification and application of the models, concepts and theories used in competitive positioning within Tesco 2.3.1 Porters Five Forces The five forces framework (see appendix 5) was developed by Porter and is used in most industries to analyse competition, as it is of value to most organisations providing a useful starting point for strategic analysis (Campbell et al, 2002). Porter suggests that it is the structural characteristics of an industry (the five forces) that determine the relative success or failure of a firm (Jenkins Ambrosini, 2002 p.124). The five forces framework is complex in that different industries could be emerging, maturing or declining and Porter is able to recognise that his competitive strategies would need to vary accordingly (Jenkins Ambrosini, 2002). He believes that competition in an industry is rooted in its underlying economic structure (Jenkins Ambrosini, 2002 p. 29). Johnson et al, 2008 define the five forces as:â‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The threat of entry into an industryâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The threat of substitutes in the industrys products or servicesâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The power of buyers of the industrys products or servicesâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The power of suppliers into the industryâ‚ ¬Ã‚    ·Ã¢â€š ¬Ã‚   The extent of rivalry between competitors in the industry For more information on the five forces see table one. A criticism of the five force framework is that Porter implies all competitors within an industry are equal. However, this is not always true as it could be the size of the industry which is causing the threat. Also the macro ­ environment must be regularly reviewed due to the continuous movement as the five forces cannot be applied in isolation (Campbell et al, 2002). 2.3.2 Application of Porters Five Force Framework in Tesco Porters five force framework is used within Tesco in order to examine the external factors impacting upon their company. In relation to the threat of entry into an industry, Tesco along with rivals such as Asda, Sainsburys and other supermarkets put up extensive barriers to entry within their industry (Research Papers, 2007). An example of what Tesco accomplish within the market of certain products means that a new supermarket would not be able to find a cheap, reliable supplier. This would mean that Tesco has the advantage of buying in bulk giving them economies of scale (321 Books, 2007). The power of the buyer in Tesco can force down the price of products, as if buyers want products they know they can get cheaper in another supermarket it is more than likely that the buyer will move to the other supermarket. This means that supermarkets have a disciplined approach to setting the price of their products. Supermarkets destroying each other over profits are prevented due to the discipline used within Tesco (Research Papers, 2007). Tesco uses the power of the supplier to their own advantage. However, the price of products are demanded by the supplier otherwise the retailer will not be delivered the goods to sell (Research Papers, 2007). This would create poor customer service and a bad relationship with the suppliers. With Tesco being a larger supermarket, it has an advantage over smaller shopkeepers as they can dictate the price they are prepared to pay the supplier, as if they do not agree to this they will lose business in the long run (321 Books, 2007). Tesco has a very high competitive rivalry in food retail with competitors such as Asda, Sainsburys, Morrisons and Waitrose. All these competitors compete on price, products and promotions periodically (321 Books, 2007). The five force analysis is also complemented with another technique know as a SWOT analysis which is used to create synergy. A SWOT analysis of Tesco can be found in appendix 6. In order to gain new sales opportunities the major retailers in the UK such as Tesco must expand their product categories which is causing intense rivalry between the UK supermarkets (Hackney Birtwistle, 2006). There is also rivalry with competitors over the operation of online facilities, although Tesco has been proven to be the most successful in implementing their strategy. Due to this it means Tesco can sustain a competitive advantage. Sustaining a competitive advantage can be gained in three different ways which is shown in appendix 7 (Hackney Birtwistle, 2006). 2.3.3 Porters Generic Strategy Porters generic strategy framework is used to gain a competitive advantage and is the oldest approach based on an outside ­in approach. It is known as this as it examines the environment and then decides how to achieve a strategically desirable position (Campbell et al, 2002). However due to the recession the economy is in at present, the question relating to Porters generic strategy is it possible that Tesco can afford to look into the environment? (McNeilly, 2008) Generic strategies are used to attain above average performances within an industry in order to gain a competitive advantage. The generic strategies contain cost leadership, differentiation, cost focus and differentiation focus and can be found in appendix 4 (De Wit Meyer, 2004). Porter has argued that businesses should not get stuck in the middle so must choose either a differentiation or cost leadership strategy (Campbell et al, 2002). Competitive advantage within the broad segments of an industry include the cost leadership and differentiation strategies whereas the narrow segments of an industry aim to gain a cost advantage and include cost focus and differentiation focus. However, different industries will vary widely meaning the generic strategies must relate to that particular industry (De Wit Meyer, 2004). The Tesco generic strategy which is used will have to be cost leadership unless they can successfully differentiate their line of clothing so that they can begin to charge a premium price (Johnson et al, 2007). A critique of Porters generic strategies by Bowman is that he believes competitive advantage should be more effective within an organisation than its competitors in order to provide customers with want they want or need. Due to this criticism Bowman developed the strategy clock (see appendix 8) (Johnson et al, 2008). Positioning and competitive advantage can be gained using the strategy clock as it makes managers aware of how changing requirements of their markets and choices can be made (Johnson et al, 2008). In relation to the strategy clock developed by Bowman, Tesco adopts the hybrid strategy as it accepts elements of both cost leadership and differentiation (Campbell et al, 2002). A hybrid strategy seeks simultaneously to achieve differentiation and a price lower than that of competitors (Johnson et al, 2008, p.230). However, it could be argued that the price of products used by Tesco should not need to be lowered if differentiation can be achieved. The reason behind this is, Tesco should be able to obtain their prices at least equal to competitors such as Asda and Morrisons if not higher due to them being market leader (Johnson et al, 2008) Johnson et al, 2008 believe that Hybrid strategies can be advantageous for a number of reasons as detailed below: v Tesco is achieving a high standard of market share in the UK. This is due to the grater volumes being achieved over their competitors, meaning their margins could still be superior due to the low ­cost base they have. v Hybrid strategies can be used as an entry strategy in the market where there are established competitors. Tesco adopts this strategy when developing their global strategy. It allows them to target competitors and enter the market in different geographical areas with superior products at low prices. This enables them to get established and gain customer loyalty. 2.4 Identification of market segmentation A market segment is a group of customers who have similar needs that are different from customer needs in other parts of the market (Johnson et al, 2008, p.77). The advantages of market segmentation are shown in appendix 9. Typical bases for segmentation of markets are: v Demographic variables which include difference of age, stages of the family life cycle, gender, income, occupation, education, race and religion. v Geographic variables such as difference by country, region, type of housing/neighbourhood v Psychographic variables which exploit the lifestyle, personality or intelligence differences between people v Behavioural variables such as attitudes to brand loyalty, frequency of use, consumption occasion (Campbell et al, 2002, p.95). Tesco appeal to all customers as the products they sell attracts customers from low incomes to those who are more affluent (McNeilly, 2008). Their product choice is increasing in diversity which ranges from healthy living products, free from products, special healthy kids snacks, organic products and fair ­trade products (Tesco, 2008). This means they segment successfully which is shown in their profits (McNeilly, 2008). For Tesco customer segmentation see appendix 10. Due to segmentation, Tesco have recently identified a few gaps in the market which has enabled them to react to these particular markets before competitors notice them. The first gap they identified was the music download service which will have a major impact on Apples position as it will allow people to legally purchase and download (Beaumont Warman, 2008). Tesco digital is there new venture and plans to play Apple at its own game (Beaumont Warman, 2008). Another area were Tesco has identified a gap in the market is with cheese. The Dairy Farmers of Britain (DFB) have added a range of four different cheeses to their portfolio which they have launched in 650 Tesco stores. These are known as the 1st grade range and include mild, mature, Ploughmans vintage and red Leicester. These cheeses are aimed at a gap in the market between everyday brands and niche offerings (The Grocer, 2008). 2.5 Globalisation According to Lasserre, 2007 Globalisation is the phenomenon of the transition of industries whose competitive structure changes progressively from multinational to global. Industries such as telecommunications, processed food, personal care and retail are in the process of globalisation. It is also associated with consistency of products and practices alongside a high level of co ­ordination and integration of activities in Tesco value chain (Lasserre, 2007). See appendix 11 for this. According to Inkpen Ramaswamy, 2006 p.14 global companies must understand customers from the perspective of both domestic and international standards and must have the ability to learn in multiple locations far from the home base. The models which will be analysed to explain the basis of global strategy are Porters global generic strategies, Yips driver framework and Porters Diamond theory. 2.5.1 Porters global generic strategy When looking at globalisation, Porter adapts his generic strategy framework to global conditions. This model suggests five strategy alternatives what a business can use when operating internationally as shown in appendix 12. These five alternatives are positioned either with the extent to which the business is globalised or by the scope of the competitors within the industry (Campbell et al, 2002). In relation to Porters global strategy he considers that competitive advantage results from the global scope of an organisations activities and the effectiveness with which it coordinates them (Campbell et al, 2002, p.268). He also argues that configuration of value ­adding activities and coordination of value ­adding activities is what global competitive advantage depends upon (Campbell et al, 2002). Tesco has demonstrated that their value ­adding activities of allowing customers to shop for all of their needs under the one roof, has enabled them to gain a global competitive advantage effectively. 2.5.2 Yips Globalisation driver framework Yips Globalisation driver framework develops the concept of total global strategy and is much more useful than Porters global generic strategy framework as it evaluates both the overall degree of globalisation within an industry along with demonstrating the features of an industry which are more or less global naturally (Campbell et al, 2002). Yip also believes that his framework helps identify areas of an industry which are global and aspects of the industry which differ locally. Managers of businesses which are global should create their global strategy on the basis of the analysis made for the globalisation drivers (Campbell et al, 2002). 2.5.3 Porters Diamond Theory Sustainable competitive advantage is needed in any business international strategy. When entering into a foreign market/country a business will be at a disadvantage so must have competitive advantages in order to overcome this issue (Johnson et al, 2008). This can be done as Tesco has been successful in many different markets such as Europe, Asia and the US. For a list of countries which Tesco operate in and the year they first opened in that particular country see Table 2. Porters Diamond theory explains how some businesses such as Tesco have a sustained competitive advantage in their industry when their competitors have not been as successful (Johnson et al, 2008) Tesco have more than ten years experience overseas due to their international strategy which contains six elements. These are to be flexible, act local, maintain focus, use multi ­ formats, develop capability and build brands. This is the reason behind how they are able to sustain a competitive advantage and are the third largest supermarket worldwide (Tesco, 2008). Appendix 14 shows the determinants of national advantages using Porters Diamond theory. 3.0 Conclusion Recommendations From the findings of this report, there is evidence to suggest that Porters strategies are relevant in todays grocery industry in relation to competitive positioning. These strategies which Porter uses relate to all types of industries and they help businesses to gain a competitive advantage as in the case of Tesco. By having these strategies in place it has allowed Tesco to gain this competitive advantage in the UK and overseas making them the third largest grocery retailer in the world. These strategies have been used successfully for over twenty years and will continue to be successful in the future. At present the economy is in a recession, meaning that people are spending less and changing their behaviour and habits when it comes to shopping. However, Tesco try to assure their customers that they are about value so there is no need for them to shop anywhere else. Growth is what Tesco believe in and even though the economy is in a recession they have planned and prepared long ­term to expand and invest in the UK and internationally which will create up to 30,000 jobs. In recent recessions Tesco continued to invest which they believe is one of the best things they have done and will continue to invest during this economic recession. Ref erence s Johnson et al (2008). Exploring Corporate Strategy, eight edition, Essex, Pearson Education Limited Tesco (2008). Tesco PLC [Internet] Available from: http://www.tescoplc.com/ Leahy, T. (2008). Tesco Interim Results, 2008 ­2009: Full Interview [Internet] Available from: http://www.tescoplc.com/plc/ir/pres_results/results/r2008/sirterry_interview090 8/ Hall, J (2008). Tesco to be world number two by 2012 [Internet] Available from: http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/3691672/tesco ­to ­ be ­wor Campbell et al, (2002). Business Strategy: An introduction, Second Edition, Oxford, Elsevier Butterworth ­Heinemenn Lynch, R (2003). Corporate Strategy, third edition, Essex, Pearson Education Limited Darling, J. (2001). Successful competitive positioning: the key for entry into the European consumer market, European Business Review, 13, (4), pp.209 ­ 220 Jenkins Ambrosini (2002). Strategic Management: A multi ­perspective approach, Hampshire, Palgrave Research Papers (2007). Porters Five Forces on Tesco. [Internet] Available from: http://www.oppapers.com/essays/Porters ­5 ­Forces ­Tesco/108949 321 Books (2007). Porters Five Forces at Tesco PLC. [Internet] Available from: http://www.321books.co.uk/catalog/tesco/porters ­five ­forces.htm Hackney Birtwistle (2006). The UK grocery business: towards a sustainable model for virtual markets, International Journal of Retail Distribution Management, 34, (4/5), pp.354 ­368 McNeilly, A (2008). Globalisation and the multinational Lecture Notes [24.11.08] De Wit Meyer (2004). Strategy process, content, context, third edition, London, Thomson Beaumont Warman (2008). Can Tesco topple iTunes? [Internet] Available from: http://www.telegraph.co.uk/scienceandtechnology/3357071/can ­tesco ­ topple ­itunes The Grocer (2008). DFB 1st Grade targets gap in cheese market [Internet] Available from: http://www.thegrocer.co.uk/articles.aspx?page=articlesID=195740 Lassere, P (2007). Global Strategic Management, second edition, Hampshire, Palgrave Inkpen Ramaswamy (2006). Global Strategy, New York, Oxford University Press Inc Morris, T (2004). Tesco: a case study in supermarket excellence, New Zealand, Corolis Research Business Teacher (2008). Tesco Swot Analysis, [Internet] Available from: http://www.businessteacher.org.uk/business ­resources/swot ­analysis ­ database/tesco ­swot ­analysis/ Bib liog rap hic Ref erencing Beaumont Warman (2008). Can Tesco topple iTunes? [Internet] Available from: http://www.telegraph.co.uk/scienceandtechnology/3357071/can ­tesco ­ topple ­itunes Business Teacher (2008). Tesco Swot Analysis, [Internet] Available from: http://www.businessteacher.org.uk/business ­resources/swot ­analysis ­ database/tesco ­swot ­analysis/ Campbell et al, (2002). Business Strategy: An introduction, Second Edition, Oxford, Elsevier Butterworth ­Heinemenn Darling, J. (2001). Successful competitive positioning: the key for entry into the European consumer market, European Business Review, 13, (4), pp.209 ­ 220 De Wit Meyer (2004). Strategy process, content, context, third edition, London, Thomson Hackney Birtwistle (2006). The UK grocery business: towards a sustainable model for virtual markets, International Journal of Retail Distribution Management, 34, (4/5), pp.354 ­368 Hall, J (2008). Tesco to be world number two by 2012 [Internet] Available from: http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/3691672/tesco ­to ­ be ­wor Inkpen Ramaswamy (2006). Global Strategy, New York, Oxford University Press Inc Jenkins Ambrosini (2002). Strategic Management: A multi ­perspective approach, Hampshire, Palgrave Johnson et al (2008). Exploring Corporate Strategy, eight edition, Essex, Pearson Education Limited Lassere, P (2007). Global Strategic Management, second edition, Hampshire, Palgrave Leahy, T. (2008). Tesco Interim Results, 2008 ­2009: Full Interview [Internet] Available from: http://www.tescoplc.com/plc/ir/pres_results/results/r2008/sirterry_interview090 8/ Lynch, R (2003). Corporate Strategy, third edition, Essex, Pearson Education Limited McNeilly, A (2008). Globalisation and the multinational Lecture Notes [24.11.08] Morris, T (2004). Tesco: a case study in supermarket excellence, New Zealand, Corolis Research Research Papers (2007). Porters Five Forces on Tesco. [Internet] Available from: http://www.oppapers.com/essays/Porters ­5 ­Forces ­Tesco/108949 Tesco (2008). Tesco PLC [Internet] Available from: http://www.tescoplc.com/ The Grocer (2008). DFB 1st Grade targets gap in cheese market [Internet] Available from: http://www.thegrocer.co.uk/articles.aspx?page=articlesID=195740 321 Books (2007). Porters Five Forces at Tesco PLC. [Internet] Available from: http://www.321books.co.uk/catalog/tesco/porters ­five ­forces.htm Appendix 4 Competitive Advantage Differentiation Broad Cost Leadership Differentiation Asda Waitrose Tesco Competitive Scope Sainsburys Cost Focus Differentiation Focus MS Delicatessens Narrow The Generic Strategy Framework. De Wit Meyer, 2004 p. 262 Appendix 5 The Five Forces Framework Potential entrants Suppliers Threat of entry Competitive Rivalry Bargaining Power Bargaining Power Buyers Threat of substitutes Substitutes Johnson et al, 2008 p.60 Appendix 6 SWOT analysis of Tesco Strengths: à ¢Ã¢â€š ¬Ã‚ ¢ Tesco within the global market place won retailer of the year award 2008. this can drive advantage towards future growth and sustainability à ¢Ã¢â€š ¬Ã‚ ¢ Although global retail sales are declining, Tesco Group have gained sales of 13% in the UK and 26% growth internationally à ¢Ã¢â€š ¬Ã‚ ¢ As Tesco look to expand they have reserved funds of credit available Weaknesses: à ¢Ã¢â€š ¬Ã‚ ¢ Reduced profit margins can be the case of Tescos position as a price leader in the UK à ¢Ã¢â€š ¬Ã‚ ¢ Tesco Finance profit levels were caused through bad debt, credit card arrears and household insurance claims. à ¢Ã¢â€š ¬Ã‚ ¢ Due to current economy at present, Tesco will suffer due to the cost of living and lower disposable income Opportunities: à ¢Ã¢â€š ¬Ã‚ ¢ Statistics show that economies of scale can be gained through buying power, which is why Tesco are the third largest global grocer à ¢Ã¢â€š ¬Ã‚ ¢ Due to the acquisition in Asia there is opportunity for further growth internationally à ¢Ã¢â€š ¬Ã‚ ¢ Further growth and development will be made with Technology Threats: à ¢Ã¢â€š ¬Ã‚ ¢ The credit crunch has affected the UK and American markets so Tesco will focus on lower priced products à ¢Ã¢â€š ¬Ã‚ ¢ Wal ­Mart who are world leaders put persistent threats of takeover on Tesco à ¢Ã¢â€š ¬Ã‚ ¢ Products areas may need to be evaluated due to changes in consumer buying à ¢Ã¢â€š ¬Ã‚ ¢ profit margins may be affected by the rise in raw materials Business Teacher (2008). Tesco Swot Analysis, [Internet] Available from: http://www.businessteacher.org.uk/business ­resources/swot ­analysis ­ database/tesco ­swot ­analysis/ Appendix 7 Sustaining competitive advantage Price ­Based strategies à ¢Ã¢â€š ¬Ã‚ ¢ Accept reduced margin à ¢Ã¢â€š ¬Ã‚ ¢ Win a price war à ¢Ã¢â€š ¬Ã‚ ¢ Reduce Costs à ¢Ã¢â€š ¬Ã‚ ¢ Focus on specific segments Differentiation à ¢Ã¢â€š ¬Ã‚ ¢ Create difficulties of imitation à ¢Ã¢â€š ¬Ã‚ ¢ Achieve imperfect mobility (of resources/competences) à ¢Ã¢â€š ¬Ã‚ ¢ Reinvest margin Sustaining Competitive Advantage Lock ­in à ¢Ã¢â€š ¬Ã‚ ¢ Achieve size/market dominance à ¢Ã¢â€š ¬Ã‚ ¢ First ­mover advantage à ¢Ã¢â€š ¬Ã‚ ¢ Reinforcement à ¢Ã¢â€š ¬Ã‚ ¢ Rigorous enforcement Johnson et al, 2008. p. 225 Appendix 8 The Strategy Clock: Competitive strategy options High Perceived product/service benefits Low Price 2. Hybrid 3. Differentiation 4. Focused Differentiation 5. 6. 1. No Frills 7. Strategies destined 8. for ultimate failure Low Low High Price Needs/risks 1. No frills Likely to be segment specific 2. Low Price Risk of price war and low margins; need to be cost leader 3. Hybrid Low cost base and reinvestment in low price and differentiation 4. Differentiation a) Without price premium Perceived added value by user, yielding market share benefits b) With price premium Perceive added value sufficient to bear price premium 5. Focused differentiation Perceived added value to a particular segment, warranting price premium 6. Increased price Higher margins if competitors do not follow; risk of losing market share 7. Increased price/ low value Only feasible in monopoly situation 8. Low value/ standard price Loss of market share Appendix 9 Target market selection Differentiation Market Segmentation Tailored marketing mix Opportunities and threats Jobber, 2004 p, 275 Appendix Firm Infrastructure Support Activities Human Resource M