The Business of Facebook

The business model of any organization is very important in helping a business become successful or unsuccessful. They help guide the leaders in the company to reach the goals and purpose of their organization. In recent news, the business model of Backbone has been under a large amount of scrutiny.I will be analyzing the business model of Backbone using the definition of business model from the textbook which states â€Å"A business model defines how an organization interacts with its environment to define a unique strategy, attract the resources and build the abilities required to execute the strategy, and create value for all stakeholders† (Applegate, Austin & Souls, 2009). STRATEGY There are four key dimensions to strategy: market positioning, product positioning, business networking positioning, and boundary positioning.These four dimensions combined help an organization develop a strategy which by definition of the textbook is the series of choices that determine the opp ortunities you pursue and the market potential of those opportunities (Applegate, Austin & Souls, 2009). In order to analyze the business strategy of an organization you must first determine what kind f business it is (Applegate, Austin & Souls, 2009). In E. B.Body's (2012) article â€Å"What is Passbooks Business† she states â€Å"[Backbone] creates a place for people to hang out and upload photos or pithy notes on what they are doing right that second, and then it posts advertising along the side of that status update highway. † Backbone services 845 million members all over the world, excluding China where Backbone has been blocked by the Chinese government. In December of 2011 Backbone averaged a total of 483 million daily active users worldwide (Form S-l, 2012).For a company such as Backbone, marketing position is very important. Market positioning determines the selection of customers that a business decides to serve (Applegate, Austin ; Souls, 2009). One of Pass books ten main principles is â€Å"One World† which states â€Å"The Backbone Service should transcend geographic and national boundaries and be available to everyone in the world (backbone. Com, 2012). Passbooks customer base is two-sided. They have the 845 million individuals that have profiles on the site and then they have the companies that advertise.Considering the fact that Backbone already has 845 million users and there are only seven billion people on the earth, here is not much room for Backbone to grow their consumer base. With China off significant growth in the user base of Backbone is very unlikely (Boyd, 2012). The other side to Passbooks customer base is the companies that purchase advertising on Backbone. Jonathan Blue (2012) states, â€Å"Any business would be foolish not to consider Backbone as an ongoing marketing option. † According to Blue, Passbooks advertising costs are incredibly cheap.For a monthly fee advertisers can run ads and in return t hey receive a report on viewer's impressions and click-through (Blue, 2012). In 2011 Backbone brought in $3. Billion in revenues from advertising alone. This accounts for eighty-five percent of their revenues. Backbone receives revenues from advertisers with many different objectives ranging from long-term brand awareness to stimulating an immediate purchase (Form S-l, 2012). The advertising on Backbone is based on the likes that users have on their accounts.Advertisers can decide what type of audience they think would be interested in their product, then Backbone displays adds on the sides of people's news feeds based on their likes and preferences (Blue, 2012). Product positioning is the choice of products and services hat a company offers. It includes the features of these products and the price at which they will be offered. Backbone offers a variety of product including pages, profiles, ads and sponsored stories and platforms (backbone. Com, 2012). Different sides of their cust omer base use different products that Backbone has to offer.Although the majority of Passbooks revenues come from advertising, they also receive income through other platforms where users purchase virtual and digital goods (Form S-l, 2012). The majority of the payments that Backbone receives from third-party applications come from Zingy, a social network gaming company (Boyd, 012). Business networking is the role that an organization plays and the activities it performs within an extended network of suppliers, producers, distributors and partners. Over the years Backbone has partnered with many different companies in order to offer more to its users and make it become more enticing to use.Backbone has formed partnership with many companies such as Microsoft, Cell Partners, Digital Sky Technologies and more. Boundary positioning is when an organization determines the markets and products that they will not pursue. Backbone has not specified any specific market that it has not decided to pursue. The founder, Mark Seersucker even traveled to China to speak with some of China's top technology executives in hopes of them removing the ban that had been placed on the use of Backbone in China. In 2009 the number of Backbone users in China plummeted from one million to 14,000 due to the ban.While user numbers in China have slightly risen, many users are still blocked from accessing the site (Chaos, 2010). CAPABILITIES Capabilities help a company implement their business strategy while paving the way for future growth. It also helps a business see what resources are necessary in order o successfully execute their strategy (Applegate, Austin, Souls, 2009). In order to service its consumers, Backbone has created an intricate infrastructure, including custom-built servers, racks and UPS units.In an article by Rich Miller, the CEO of Backbone, Mark Seersucker is quoted saying, â€Å"Being able to design more efficient servers†¦ Is a big part of enabling us to build th e features we add† (2011). When Backbone has not released a definite number of servers that it runs off of, it is believed that by 2009 the company was running at least 60,000 servers in its data centers (Miller, 2010). We can conclude that since Backbone has began to design more efficient servers, that they have the resources and technology needed to support their user base.As the number of users increases, Backbone increases the number of servers and data centers so that their consumers can receive the best in class. The Backbone team is also comprised of very well educated people, who have the expertise needed in order to run and continue to improve the operations of Backbone. In my research of the company I did not run into anything that made me believe that the employees of Backbone were not fully qualified and competent in order to run the business. I also believe that the company has strong leadership and is comprised of people who are committed to making Backbone succe ssful.Mark Seersucker is very involved in all aspects of the company. VALUE The majority of Passbooks stockholders are internal stockholders. Mark Seersucker, the CEO and founder of Backbone, owns twenty-four percent of the shares of Backbone. Some of the other leading stockholders include Cell Partners, Digital Sky Technologies, Microsoft, and co-founder Dustin Muscovite as well as many more (Carlson, 2010). Backbone has made recent headlines when GM decided to withdraw TTS $10 million contract with Backbone for advertising (Junk, 2012). This raised a very important question for many investors.Will Backbone be able to attract and retain key customers? The majority of Passbooks revenue is generated through advertising and in their S-l that was filed in January of this year Backbone warns investors that there is a high degree of risk that is involved in investing in Backbone. In order for Backbone to continue generating revenues, it will need to continue selling advertisement. While these revenues from advertising are purchased by business OTOH big and small, the success of Backbone selling advertising relies largely on the individuals that have profiles on Backbone.In their S-l Backbone states â€Å"If we fail to retain existing users or add new users, or if our users decrease their level of engagement with Backbone, our revenue , financial results and business maybe significantly harmed† (2012). One of the biggest marketing factors that Backbone has in selling advertisers is that a company who purchases advertising on Backbone could potentially reach the more than 800 million monthly active users on Backbone. This is also the downfall of advertising on Backbone. If the number of users decreases or people become less active, then that is less people that the advertising is reaching.

Win Snort

Installation of WinSnort Contents Introduction I have been tasked with evaluating the latest WinIDS AIO pack from Winsnort. com to determine whether it would be suitable as the intrusion Detection System (IDS) on the company network. Within this report i will include the details of the trial deployment, give a recommendation and then evaluate the product. What is an IDS? Intrusion in this case is where someone or something as it may be has entered a computer on a network without invitation in attempt to compromise it. Without any systems in place it can be too late before you notice an intruder. his is where an intrusion detection system comes into play. In snort 2. 0 an IDS is described as a high tech burglar alarm. An IDS is configured to monitor access points, hostile activities and known intruders. An IDS can work similarly to an anti-virus where it stores signatures of previous or known intruders, the more secure IDS's have huge databases of these signatures and can detect patte rns activity, traffic, or behaviour it sees in the logs it is monitoring against those signatures to recognize when a close match between a signature and current or recent behaviour occurs. When an IDS detects an intruder or potential risk it can issue an alarm or alert and/or automatically take action. Deployment As said in the introduction there was a certain IDS that we had to deploy and find out certain information about it, for example; ease of installation, administration, usability, effectiveness as an IDS and also if there were additional features available. Usually Snort is installed on a Linux operating system but in this case we are going to install it using a windows operating system. Due to it being installed on windows server 2003 it made the difficulty of installation a lot higher as there is not as much documentation on it. There are a number of steps involved when trying to install Snort. Unlike many systems this IDS has to be installed in separate parts. The main parts include: Installing WinPcap Installing and Configuring Snort Installing Apache Web Server Installing and configuring PHP Configuring WinIDS to run as service Installing and configuring MySQL Installing ADODB Installing and configuring the WinIDS Security Console Creating the WinIDS Security Console Database Tables Configuring the Graphing for the WinIDS Console Securing the WinIDS Security Console Within these parts there is a lot of editing of files through use of opening the main configuration files in WordPad and adapting to our installation. Documentation Recommendation â€Å"Snort is, by far, the gold standard among open source NIDS systems, with over 100,000 users and 3 million downloads to date. Snort signatures are kept up-to-date by its dedicated users and the Snort website has ample documentation including tutorials. It is not, however, easy to use and requires an experienced security IT professional to configure it properly. The fact that it's free makes it the darling of small and medium-sized businesses that cannot afford the fancy GUIs and wizards of commercial network security products. † http://www. enterprisenetworkingplanet. com/netos/article. php/10951_3684306_1 Evaluation References

ACCOUNTING FOR STRATEGIC & MANAGEMENT CONTROL'S [CASE STUDY] Case Study

ACCOUNTING FOR STRATEGIC & MANAGEMENT CONTROL'S [ ] - Case Study Example Strategic management accounting incorporates the concept of strategic management, the elements of management – planning, implementing and controlling, and the use of financial information to aid sustainable decision making (Ramljak & Rogosic, 2012, p. 56). Based on the above definitions of strategic management accounting, after the acquisition of the Boutique Hotel by Ave-Co, the 14 Hotels were divided into three regions headed by regional managers. First, each manager had an autonomous management authority over a region. Therefore, decisions such as price determination were done without prior consultation with the parent company. To some extent, the authority given to the respective regional managers contributed to the decline in financial performance of the Boutique Hotel. The reason is the regional managers, by acting independently, could lose sight of the overall objective of the company (Ma & Tayles, 2009, p. 473-480). Second, every manager should answer to another higher authority. This helps keep the managers interests and actions in line with the overall objectives of the company. The regional managers of Boutique Hotel were acting independently, thus were under no pressure to improve the financial performance of the organization. Therefore, the mentioned reason, partly led to the decline in the financial performance of the organization (Ramljak & Rogosic, 2012, p. 94-97). The two points discussed above were concerned with the control issues in the organization. Next in line are issues concerning the Ave-Co’s finance department. The financial department of the parent company had the dual responsibility of servicing both the parent company and the Hotel. However, there was little interaction between the Hotel managers and the finance department, which inhibited the sharing of financial information. Consequently, effective financial analysis and the implementation

Reflection - Reduced harm tobacco Essay Example | Topics and Well Written Essays - 500 words

Reflection - Reduced harm tobacco - Essay Example Furthermore, the article contextualizes this lieu of the progress of corporate social responsibility and product harm reduction of tobacco companies, or lack thereof. Corporate social responsibility among tobacco companies is very much like a paradox; basically tobacco companies are like giving a poison to their consumers so that they can kill themselves. If we were to apply the logic of corporate social responsibility to the tobacco companies, we are presented with a situation that simply contradicts itself: if a tobacco company becomes a socially responsible corporation, it would be as if they will offer a slower poison to their consumers so that they will not dies as fast as before. The addition of the snus in the tobacco industry may be seen as the slower poison. It is not smoked so that there is a significant reduction in the risks of having diseases that are more likely to be acquired when smoking cigarettes. However as the article has pointed out, even with the existence of this less harmful tobacco product, it is not supported by legislation bodies and no tobacco companies are making an effort to pursue its development or more importantly, reducing the harm in their products. This is the point where corporate social responsibility among tobacco companies hits a dead end. Tobacco companies may be aware of this contradiction and that is why most of them are not making any efforts to reduce the harm in their products. Another contradiction in this situation that the article points out is how governments demonize tobacco companies while providing them a legal status. This is counter-intuitive to corporate social responsibility since it simply does nothing to affect the market demand that is fueling tobacco companies. As a result, there is no motivation for them to develop a less harmful tobacco product since their killer product rakes in the profit, and in the end that is all that matters for them. This article also

PepsiCo's Capital Structure Choices Essay Example | Topics and Well Written Essays - 3500 words

PepsiCo's Capital Structure Choices - Essay Example o is used in the analysis of the financial statements and this helps analyze the protection that the company has available to the creditors (Samuels, Wilkes, & Brayshaw, 1995). A high ratio generally expresses that the business has a high level of risk and this is mainly because the company requires meeting the principal and interest on its own obligation, without any external financing as the creditors are unwilling to finance the company due to the high debt position. A lower ratio shows that the company is more financially stable and is in a better financial position to avail debt in the future. The net debt ratio is a useful tool to bring out the current performance of the company and also helps the investors gain a clear idea of the financial standing of the company. Either too high net debt ratio or too low are both not acceptable. Here a ratio above 1.0 should be avoided as this clearly indicates that the investors have a greater stake in the business (Bull, 2007). However, a ratio that is too low simply implies that the business is too conservative and not realizing its potential. The net debt ratio of the firm is found using: The total debt of a company simply implies the overall combined value of the current liabilities, long term liabilities and the capital liabilities (Chapman, Hopwood, & Shields, 2007). Although in most theories the book value of the debt is considered, in reality, the market value is normally taken into account. The market value of debt is generally more difficult to obtain since most firms do not keep their debts in the form of outstanding trading in the markets. In most cases companies tend to keep the debts in the form of book value (Clayman, Fridson, & Troughton, 2008). It is important to also understand here that use of book value can give mis-leading values as the actual values might be significantly different. Using a book value can have three main mismeasurements. Firstly, it can have an impact on the cross sectional

The Cost of War Essay Example | Topics and Well Written Essays - 500 words

The Cost of War - Essay Example As an economic student, the cost of war does not end in the battlefield but it also affects those who are not involved with the war. The question here is the cost of war and who bear the cost. Is it America, the jihadists or the world? This perspective will enable you to explore the issue from an economist point of view. Global economy is indicated by various parameters. Such parameters are the only tool that we can use to determine the cost of war. Jim: I think Sam is heading in the right direction since the issue of cost of war should be linked with the question of who bears the cost. It is unfortunate that since the end of World War II, most wars have been between America and the so called the Arab world. The Asian continent or the Arab world plays a big role in the world’s economy. Nearly 50% of the global oil comes from the Arabian countries particularly Iran, Iraq, Kuwait and Saudi Arabia that. These countries have either been involved or affected by the war. This proves why global oil prices escalate whenever there is a conflict involving the Arab world and the Western League. Inflated oil prices increases the cost of production since oil is used in various stages of production such as manufacturing and transportation. High oil prices are reflected in consumer products as increase in retail prices. I consider this to be the actual cost of war† Peter: â€Å"your argument is correct however, you are more biased to answering the question of who bear the cost of war instead of the cost of war. Wars happen in reality and therefore analysis needs a realistic focus. The cost of war is the immediate impacts of war that changes the financial status of the parties involved in war. In this case the cost of war will be evaluated from the cost of damages resulting from a conflict and the cost of maintaining combatants in the battlefield or maintaining a frontline†. Simon: â€Å"I think the issue is

DOES UK DISCRIMINATION LAW PREVENT DISCRIMINATION IN THE UK RESTAURANT Essay

DOES UK DISCRIMINATION LAW PREVENT DISCRIMINATION IN THE UK RESTAURANT INDUSTRY extra literature review - Essay Example The study found that discrimination in the workplace is a common risk factor for mental disorders and the authors offer the opinion that provision of job opportunities alone may not be adequate to address the problem. Rather, the health and well being of minority employees can be improved by improving working conditions, challenging discrimination and promoting strategies that support coping behavior. Institutional racism was found to be a factor even in the British Medical Association, where some of its members sued it, for a failure to provide legal support to its minority members.(Pincock, 2004). Institutional racism may in particular, be a factor in the restaurant industry, where general prevailing attitudes of prejudice and racial stereotyping may disadvantage minority people. Discrimination against women exists in almost all industries. Some researchers have found that stereotypes about women and their commitment to their jobs results in unfavorable policies towards them in recruitment and promotion. (Halford et al., 1997; Maddock, 1998; Reskin and Padavic, 1994). Another study found that senior managers are reluctant to employ female employees who are young and married because of the family commitments that are assumed to exist.(Carrier, 1995). Women are not only discriminated against in the workplace, they are also harassed more frequently. Harassment, in general terms, is unwanted conduct affecting the dignity of men and women in the workplace. As per Section 3 of the Race Relations Amendment Act 2000, a person would discriminate against another person if he/she applies a â€Å"provision, criterion or practice† which would put them at a particular disadvantage when compared with people of other races or ethnicities. This in effect would have the effect of violating the dignity of the other person or humiliating them on grounds of their race or ethnicity. The Sex Discrimination Act of

Economic growh & environmental quality (haiti vs california) Essay

Economic growh & environmental quality (haiti vs california) - Essay Example This is because unlike California, Haiti has seen numerous political and environmental shocks that have severely hindered its growth. Nevertheless, economic growth in both California and Haiti comes with negative environmental outcomes comprising water and land pollution, greenhouse gas emissions as well as destruction of ecological landscape. Haiti economic growth largely centers on agriculture given that majority of the island is mountainous. Most of Haiti lush rainforests has been cleared for small-scale farming and charcoal burning, hence leaving only 28.3% of its land mass to be good for arable and commercial farming1. Agriculture accounts for the nation 25% of its GDP production. As a result, two thirds of Haiti labor-force still lives on small-scale subsistence farms which has resulted in economic stagnation, that has made Haiti the poorest nation in the western hemisphere. Hence, the nation has no substantial industrial or manufacturing sector, which then makes 40% of Haitian population to be unemployed even as the average income for most Haitian is less than $200 per year2. Haiti economy is largely driven by informal small-medium enterprises, which accounts for 80% of the nation new jobs. Nonetheless, the textile industry forms the second largest economic activity after arable farming. On the other hand, Californ ia has a GDP per capita income of $60,190 per year with the unemployment level standing at a much lower level of 7.4%3. Secondly, California has a diverse and highly skilled workforce working in different sectors unlike Haiti, and varies from high tech, to retail and service industry, to manufacturing, biotech, entertainment, to agriculture. Thus, before the 2007-2008 financial crises, California experienced per capita GDP growth that surpassed even the United States per-capita GDP expansion. In particular, the state share of the entire California manufacturing output grew from eight to

Church Split During Middle Ages Essay Example for Free

Church Split During Middle Ages Essay Ultimately, the cause of the Great Schism of 1054 was a question of who was the highest authority. The underlying reasons why there was a split, however, developed in earliest beginnings of the Church. In those days the Church was never completely unified, and several of the original organizations, such as the Coptic Orthodox and Oriental Orthodox Churches, which date from ancient times, still exist as separate entities. By far, the largest body of the Church was the one centered in Rome, which from ancient times was made up of two main groups of people, one speaking Latin and one speaking Greek. Latin was the language of the administrative center in Rome. Greek, however, was the original language of much of the New Testament. The linguistic difference was part of a foundation of a split that developed more, and not always for reasons that had anything to do with religious doctrine. Like the Church, the Roman Empire was divided between Latin and Greek areas, and the common understanding of this is skewed. The date we are accustomed to assign to the fall of the Roman Empire was not actually the date of a sudden destruction of a country. In fact, what happened that year was the abdication of the last emperor of the Roman Empire of the West, with authority being reunited in the hands of the emperor of the Roman Empire of the East. And in theory, the Roman Empire continued with what we call the Byzantine Empire today, but what called itself the Empire of the Roman People at the time. For group of people in the East, who considered themselves the rightful administrators of law and Justice, to admit that they had lost control over the West was difficult enough, but in addition to that, the popes were demanding that they acknowledge the spiritual leadership of Rome, with increasing demands for political leadership as well. When Pope Leo Ill crowned Charlemagne Emperor of the West, in 800, it was not a religious issue, but it was a political issue that made the Greeks very upset. From the Greek perspective, Charlemagne and the Pope were usurping the authority of Empress Irene, who was ruling the empire at the time. When Emperor Michael Ill deposed the Patriarch Ignatius of Constantinople in 858, the Pope, Nicholas l, declared the action illegal and acted on his own authority to return Ignatius to his position. This caused further problems, and this time it was within the Church itself. In 1014, the Pope again tried to exert authority over the ishops of the East, interfering in a change they were making to the to the Nicene Creed. Right or wrong, this created more strain. The time of continual, simmering resentment continued, as the Popes continued to try to get the Greek bishops to accept the supreme authority of Rome, and the Greek bishops always tried to avoid doing this. Finally, in 1054, a group of legates excommunicated the Patriarch of Constantinople because he would not take an oath to acknowledge the supremacy of the Pope, and he retaliated by excommunicating them. Church Split During Middle Ages By brandyHK

Media studies comparative Essay Example for Free

Media studies comparative Essay Over the last twenty-five years the television series Doctor Who (and others) have altered massively. Different styles of presenting television shows, the way actors act and the certain way the story flows ultimately means that the new Doctor Who series is shown in a brand new light. This essay sets out to outline and highlight similarities and differences between the old Doctor Who of the 1980s and the brand new series that was recently aired. Many techniques have changed over the years; the new series is a prime comparative example of whats changed, and whats not. Russell T Davis, the writer of Doctor Who has written the story in such a way it reflects current society truths. He wrote Rose Tylers part on par with the Doctors own story; he later said neither was more important than the other. However in The Leisure Hive the author gives the Doctor a much more superior role compared to Romana who isnt that important and doesnt do very much. In the new series Tyler is given a much bigger part, she has more to say and do and is vital for the Doctors plans to succeed. Tyler and Romana also get very different times on the screen. For instance in the Leisure Hive the Doctor and Romana are in the shot. They both have equal space, the doctor is standing and is ready for action, but Romana is sitting down looking casual ready to sit and watch it all. (This is the scene where the space ship goes over their head). As I have already deduced Romana isnt that essential in the Doctors plans and so naturally doesnt spend as much time acting as the Doctor, whilst Tyler, the Doctors close assistant does. Its all down to the fact that society has changed the way we portray and look at women on television. Something else that has also changed is the way Tyler acts. She is a lot more masculine than Romana who can be described as girlie and weak. Tyler wears more casual and unisex clothes like jeans, trainers and a tee shirt while Romana is wearing a much more eccentric dress and heels. Tyler and Romana also contribute very different narrative. Tyler has more to say and do than Romana who is basically a background support actor. Because Tyler is invaluable to the story line she is given much more action than Romana. Most key points and advances in knowledge are made by Tyler, Romana on the other hand does help but she is also a slight hindrance. This is due to her weak attitude and the way she shows herself to the audience. Romana seems to be the person to go with the flow. She comes across to the audience as someone who means well, but is very lazy and doesnt want to be there. This is also something else that makes Tyler seem more genuine and realistic. Over the years people have slowly began to stop speaking in Standard English. They began talking in a much more slangeey way. Romana still speaks in Standard English. She is very posh, and thinks highly of herself, Tyler on the other hand is much more forward chatty and seems down-to-earth the average person youd see in the street. This attracts us in, as Tyler is someone we would like to know, she behaves and acts, as we would like to do ourselves. Many things have happened since the release of The Leisure Hive. Romana was told to act in a certain way and she did. Now we can look back and discuss what has not changed. In some cases they can be very similar, but mostly they act both as they are expected. In general both characters have got the characteristics to be successful assistants. They are brave, heroic and clever these are some of the type of abilities needed which have not changed over the years. Tyler and Romana are the same in the sense that they both want to help, but overall Tyler swings it with the authentic acting, and genuine personality with really makes differences to the viewer and how he or she portrays women now. Many different things have happened, that have affected the way we watch, and portray women in British society. Women are now shown to be leaders, people to stand up and fight for righteousness and oppose evilness, and this follows the typical plot of a drama series (or film), which is why Doctor Who is such a popular and enjoyable series to watch. Richard Callus Media Studies Comparative Textual Analysis Coursework

Advantages And Functions Of Clearing House

Advantages And Functions Of Clearing House In addition to the clearing of city and country checks, principally the former, and the settlement of balances, which may be called the primary clearing house functions, there are others not quite so much in general use but which nevertheless are of great importance. Many clearing house associations exercise a close supervision over their members, through the medium of the clearing house system of examination under the direct supervision of a clearing house examiner. The clearing house examiner supplements the work of Federal and State examiners. The National and State officers are limited in their powers of criticism to actual infringements on the law, and before they can take steps to correct such infringements capital has often become impaired and failure is threatened. Most bank failures are due to the gradual acquirement of undesirable assets over a period of years, and if some authority exists with power to make recommendations of a remedial character, with the further power to enforce such recommendations, if necessary, there is little doubt that many bank failures would be averted. The examinations include, besides a verification of the assets and liability of each bank, so far as is possible, an investigation into the workings of every department and are made as thorough as is practicable. After each examination the examiner prepares a detailed report in duplicate, describing the banks loans, bonds, investments, and other assets, mentioning specially all loans, either direct or indirect, to officers, directors, or employees, or to corporations in which they may be interested. The report also contains a description of conditions found in every department. One of these reports is filed in the vaults of the Clearing House, in the custody of the examiner, and the other is handed to the examined banks president for the use of its directors. The individual directors are then notified that the examination has been made and that a copy of the examiners report has been handed to the president for their use. In this way every director is given an opportunity to see the report, and the examiner, in every instance, insists upon receiving acknowledgment of the receipt of these notices. The detailed report retained by the examiner is not submitted to the Clearing House committee, under whose direct supervision he operates, unless the discovery of unusual conditions makes it necessary. A special report in brief form is prepared in every case and read to the Clearing House committee at meetings called for that purpose. The report is made in letter form, and describes in general terms the character of the examined banks assets, points out all loans, direct or indirect, to officers, directors, or employees, or to corporations in which they may have an interest. It further describes all excessive and important loans, calls attention to any unwarranted conditions, gross irregularities, or dangerous tendencies, should any such exist, and expresses, in a general way, the examiners opinion of each bank as he finds it. The examiners enter into an agreement not to enter the employ of any member or non-member of the association, or any other bank, banking institution, firm, or individual engaged in the business of banking, within a radius of miles, for a period of years after the expiration of services with the association. The Clearing House examiner is a very valuable man to the small bank or new institution. The officers of these banks very often do not have the facilities or experience necessary to pass upon paper which is submitted to them for sale or discount. They are apt to become loaded up with credits which have been rejected by their larger or better informed neighbors and must pay dearly for their lack of knowledge. The bank examiner is in a position to make valuable suggestions which often save failures and liquidations. Towns which are too small to be able to afford the services of a skilled examiner can combine with two or more other cities and thus secure a proper official. A great many associations have rules for the conduct of their members. These rules provide for uniform exchange charges on out-of-town checks, uniform maximum interest rates on balances, regulations regarding hours for business, advertising, etc. Most associations publish a weekly statement of condition of the members, and cooperate in every possible way for the general good of the members of the association and the community in which it is located. There are not enough clearing house associations in America today. Nearly every town and city having three or more banks could probably form one to advantage and the Clearing House Section of the American Bankers Association will be glad to furnish all information desired. Clearing House Services Benefits Some of the key drivers that result in the IATA Clearing House benefits are: 1. Netting Through multi-lateral, multi-currency netting of Members Associates receivables a netting ratio of more than 80% is achieved. This translates into an 80% reduction in the credit risk exposure of Members Associates, significant acceleration in collection of outstanding credit and reduction in the foreign exchange risk exposure. 2. Simplification one window operation Through a single net receipt from the Clearing House or payment to the Clearing House each month, Members Associates settle their accounts with all other participants. Cross-remittances, follow-up for credit collection and delays are eliminated. Members Associates receive full accounting and reconciliation statements. Clearing House provides the robust, cost-effective infrastructure for Members Associates to settle accounts with other airlines, travel partners and service providers to enable Members Associates to focus on providing integrated, quality services to their customers. 3. Clearance calendar The calendar of ICH clearances is notified to Members Associates up to one year in advance. Members Associates can plan their billing, receivables and cash management activities in advance. Clearing House notifies each Member Associate of its net accounts with all other participants and the net payable or receivable amount, in advance. Settlement is assured on the designated ICH dates. Members Associates are able to plan and optimize the usage of their financial resources. 4. Currency Exchange and Bank Transfers Multi-currency transactions are translated into the clearance currencies at the Clearing House Rates of Exchange. After netting, settlement of the net balance is effected by/to the Members Associates concerned through a single payment in the settlement. Members Associates avoid commissions/brokerage on multiple foreign exchange transactions, international bank transfer charges and float losses. 5. Protection on Devaluation of a Debtors Currency For miscellaneous transactions, use of the Clearing House ensures that in the event of a devaluation of a debtors currency the creditor is wholly protected, and any loss of exchange falls on the debtor. The debtors loss will be restricted, however, to the exchange loss on the balance after offset of miscellaneous charges. 6. Credit Control Although membership of the Clearing House implies no credit status whatsoever, Clearing House monitors the payment history of each participant. Where necessary, security deposits are taken to cover future transactions. In the event of a default in settlement by a member or associate of the Clearing House, all other members associates are notified concurrently and at an early date. To ensure continued wide interlining capabilities and efficient customer service, Members Associates tend to pay their Clearing House balance on priority over other bilateral arrangements. The enhanced security and efficiency of settling transactions through the Clearing House enables Members Associates to generate more credit than would otherwise be available to them thereby substantially improving their working capital management. 7. Exchange Controls A number of airlines are subject to stringent exchange control regulations and central bank approval requirements in their country of residence on remittance of hard currency funds. This leads to delays in settlement to interline and travel partners or service providers, resulting in business constraints. Membership of Clearing House greatly reduces the requirements and delays: by reducing the need to only one exchange control application to settle a net balance instead of numerous applications for greater individual sums and on account of the established reputation of the IATA Clearing House for settlement of interline dues. In certain instances, need for exchange control approval is entirely eliminated due to consistent net settlement balances in that Members favor. 8. Inter-clearance with ACH The IATA Clearing House has an inter-clearance agreement with the Airlines Clearing House (ACH) of the US, enabling Members Associates of both clearing houses to settle their respective claims by and against each other. For more than 300 Members Associates of the IATA Clearing House (ICH) and just under 100 members of the ACH, this means that each participant can settle with more than 400 other parties through these Services. http://riskinstitute.ch/135470.htm Institutional Differences Existing derivatives exchanges, SROs and governmental regulatory agencies all have rules intended to achieve the three basic regulatory goals. There are many similarities in the rules of different exchanges, regulatory organizations and agencies across different jurisdictions, but there are also many differences. These differences reflect, in part, differences in the way the markets are organized and operated. One such difference, for example, concerns the relationship between the exchange for equity derivatives and the equity exchange. In some instances, the two exchanges are part of the same organization. In others, the equity derivatives exchange and the equity exchange are entirely separate entities.. Another difference concerns the structure of the clearing house. In some cases, the clearing house is part of the exchange. In others, it is not. And some clearing houses clear for only one exchange while some provide clearing services for more than one exchange. Another fundamental institutional difference lies in the trading method itself. Most derivatives exchanges use open-outcry, but some use electronic trading systems. These differences appear to be so fundamental that there is a natural inclination to believe that a successful market or successful regulation of a market can only be achieved if the proper choice is made in each of these areas. In other words, the differences in organization and trading method appear to be so profound that some believe that a market or its regulators can only be successful if the best organization and trading method is used. Let us look at each of these issues more carefully. Exchange Structure This issue is of particular interest with respect to equity derivatives. There is widespread concern that the existence of a derivatives markets for which equities are the underlying product can lead to increased volatility in the equities market and that this volatility can be function of whether the derivatives exchange is a part of the equities exchange. In this regard , it should be remembered that the fundamental reason for the existence of a derivatives market is price volatility in the underlying market. In a well-functioning derivatives market, price volatility will be the result of changes in the demand for, or supply of, the underlying product. If both markets are working properly, prices in the two markets will move together and the futures and cash prices will converge as the futures contract expires. Large changes in supply or demand conditions, therefore, should cause volatility in both markets regardless of whether the derivatives exchange is part of the exchange on which the underlying instrument is traded. A poorly designed derivatives contract can cause volatility to be higher than it would otherwise be regardless of structural considerations. The key, therefore, to preventing derivatives from increasing volatility lies primarily in ensuring proper contract design and in having adequate protections against manipulati on rather than in separating or combining the derivatives and cash markets. Clearing House Structure There are two issues here. One is whether the clearing house should be a part of the exchange or a separate entity. This distinction itself is not very important. The critical issue is that the clearing house have the authority and commitment to impose and enforce prudential margining and collection standards for all market participants. Experience has shown that both types of structure can function very well. Moreover, it has not revealed that one type is more likely to function better than another. The other structural issue concerns whether a separate clearing house for each exchange (regardless of whether the clearing house is part of the exchange) or a common clearing house for the derivatives and equity exchanges is more likely to be efficient and to promote financial integrity. There are advantages to both arrangements. A common clearing house reduces costs to its members, makes more information about financial risk readily available, and makes it easier for regulators to monitor the entire portfolio of a member. A possible advantage of separate clearing houses (or disadvantage of common clearing) is that the consequences of inadequate margining or other mistakes would have more widespread consequences. There may also be operational disadvantages to common clearing. Margining arrangements for equity and derivatives markets are different as are requirements for marking to market. There is no generally accepted view as to which arrangement is better at ensuring financial int egrity, but there would seem to be little reason for regulators to require common clearing, although they certainly might permit it. The more critical issue is whether the appropriate rules for establishing financial integrity are in place and the proper procedures for monitoring and enforcing compliance with these rules are regularly carried out. Trading Method Most existing derivatives exchanges use the open outcry method in which a trade is executed only when the parties to the trade personally agree to its terms. A few use electronic or screen-based systems in which trades are executed by a computer based upon orders entered by the parties. This difference in trading methods raises the question of whether one system is superior with respect to achieving market and financial integrity and to providing fair treatment of customers. From a regulatory perspective, however, the difference between the two types of trading systems may not be as great as some believe. All modern exchanges, whether screen-based or open outcry, rely on electronics to a large and growing extent. An open outcry system can use electronic technology for such purposes as transmitting orders, recording trades, constructing audit trails, and monitoring compliance. This means that todays open outcry exchanges are able to construct and maintain much more accurate records than was the case previously. As a result, both SROs and governmental regulators can be more effective in monitoring trading activity and in detecting and deterring rule violations. The question of the type of trading system to use is fundamentally a business or economic issue rather than a regulatory issue. Both open outcry and electronic systems can achieve acceptable levels of integrity and fairness. Neither type of system is foolproof. No matter what type of trading method is used, problems can and will occur on occasion. Some people will violate the rules. Unforeseen circumstances will arise. When this happens SROs and other regulators must be prepared to discipline those who violate the rules and to modify systems and rules if necessary. From a regulatory perspective, the most important issue is not the type of trading system. It is to ensure that the exchange has rules which are appropriate for the trading technology used and systems for monitoring and enforcing compliance with the rules. In todays world these systems will necessarily rely heavily upon electronic technology even though the trading system itself may well rely upon open outcry.

New Grub Street as a Microcosm of English Victorian Life Essay

  Ã‚   New Grub Street presents the reader with an accurate and comprehensive picture of late Victorian society, despite the fact that it predominantly focuses only on a small group of literary men and women. At first, one may have difficulty locating Gissing's voice within the narrative. The perspective leaps from character to character, without establishing any clear candidates for the reader's sympathies. Jasper Milvain is ambivalently portrayed, despite the fact that his moral and literary values were anathematic to Gissing. This is but one example of ambiguity in a novel that is filled with confusion and inversions of the 'natural order'. The world of New Grub Street is one where the unscrupulous Jasper Milvain triumphs, the mediocre Whelpdale stumbles upon commercial success, while others such as Edwin Reardon, Alfred Yule, and Harold Biffen undisputedly become casualties in the battle of life. What is Gissing trying to say about Victorian England? (Or is literary life his so le intended subject?) Throughout this chaos of view-points are interwoven the themes of money, class, and sex. Yet it is precisely the ubiquity of these themes, and the prevalent disorder of the world that makes the novel reflective of late Victorian society. Whether or not Gissing intended his novel to be purely a study in the changing literary life of the late nineteenth century, New Grub Street is effectively a microcosm of English life in the closing years of Victoria's reign.    New Grub Street depicts some of the consequences of the structural and compositional changes that were - and had been - taking place in the social and class structures of Victorian England. The increasing size of the middle class1, the reductions in working hours2, an... ... Unwin, London, 1968, p. 154. 5 Gross, John, The Rise and Fall of the Man of Letters: English Literary Life Since 1800, Penguin, Harmondsworth, 1973, p. 220. 6 Altick, p. 61. 7 Gissing, George, New Grub Street, Wordsworth, Hertfordshire, 1996, ch. XXXIV, p. 393. 8 Gross, p. 220. 9 Gissing, ch., XIV, p. 146. 10 Cited in Gross, pp. 220-1. 11 Ibid., p. 221. 12 Gissing, ch. XIV, p. 146. 13 Gross, p. 149. 14 Gissing, ch. XXXV, p. 402. 15 Ibid., p. 400. 16 Ibid., ch. XXXVII, p. 422. 17 Ibid., Introduction. 18 Ibid., ch. VII, p. 74. 19 Ibid., ch. XXXV, p. 401. 20 Ibid. 21 Ibid., ch. XIV, p. 151. 22 Ibid., ch. XXVII, p. 301. 23 Ibid. 24 Ibid., ch. XXXV, p. 403. 25 Fowles, John, The French Lieutenant's Woman, Vintage, London, 1996, p. 445. 26 Ibid., p. 283. 27 Altick, p. 17.      

The Impact of Surveillance Technology on Privacy Essays -- Expository

The Impact of Surveillance Technology on Privacy      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   David Brin in The Transparent Society warns us of the future of privacy that is on the horizon.   With millions of cameras recording our every public move, who should have control of the information: companies and governments or we the citizens?   If we take a look at Brin's vision of our future, his solution to the problem, the role of ICTs and the Kelley Cam at IU, we can come to a conclusion that our privacy is on the line and we as citizens must act soon in order to keep our country's foundational liberties.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Brin's vision of our future included the choice between two lifestyles that were illustrated by two cities.   Both of the cities were based on who had the control of the cameras.   In the first city the cameras were controlled by the authorities.   In this city, Brin argues, we will loose our privacy, independence and liberty which are all valued by Americans.   Eventually, he says, it could eliminate all crime.   The new technology could allow police to solve 100% of crimes, but on the opposite side it will turn the nation into a prison.   In the second city, the cameras are controlled by anyone who wants to use them.   Brin argues that by giving everyone control of the cameras there will be a 'reciprocal transparency' in society.   Meaning that, the once powerless now have power and anyone who wants to collect information on the public must make the same information about their self publicly available.   Tho se that have been watched by someone will now have the ability to watch back.   Brin's vision of city life in the future may be an accurate presentation.   Since our need for information is growing there is no doubt that privacy is eroding.   Ã‚  ... ...d out as silhouettes in the pictures. It was fun to operate and move the camera around, and it see each other walking way down on the ground.   The camera can zoom pretty close in to see faces, and would really be the only strong ability it has to be a threat on our privacy.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The information age has arrived, and Brin has given us a direction to take in order to protect our privacy we have always cherished.   By showing us the options between a government controlled, ?Big Brother? society to a reciprocal transparency society where everyone has access to the cameras, we can take specific actions to go in the direction that is most profitable for our privacy.   The technology will always be there, but everyone must be allowed access to it.   Clearly Brin wants to save our privacy, and the only way to fight back is to be users of the technology ourselves.   

Global Warming: Causes and Effects

Global Warming: Causes and Effects The term â€Å"global warming† is often used synonymously with the term climate change, but the two terms have distinct meanings. Global Warming is a gradual increase in the earth's temperature. Novdia explained that â€Å"global warming refers to the documented historical warming of the Earth's surface, based upon worldwide temperature records that have been maintained by humans since the 1880s† (Global Warming). Global warming is a major crisis in the world today. Three causes of global warming are the greenhouse effect, increase of carbon dioxide emission, and the effects of temperature increase. The greenhouse effect is a primary cause of global warming. It is a gradual rise in temperature in the earth's atmosphere due to the heats absorption from the sun and entrapment of gases, water vapor, carbon dioxide, methane, in the air around the earth. An example of this is a bright sunlight will effectively warm an individual’s car on a cold, clear day by the greenhouse effect. The longer infrared wavelengths radiated by sun-warmed objects do not pass readily through the glass. The trap of this energy warms the interior of the vehicle. The trapping of the hot air so that it cannot rise and lose the energy by convection also plays a major role. Stephen Novdia stated, â€Å"The greenhouse effect was discovered by Joseph Fourier in 1824, first reliably experimented on by John Tyndall in 1858, and first reported quantitatively by Svante Arrhenius in 1896† (Global Warming). Greenhouse effect then becomes a primary cause of global warming. Carbon dioxide (CO2) emissions cause global warming. It is gas in the earth’s atmosphere that came from fossil fuels. Fossil fuels are formed by natural resources and are decomposed from buried dead organisms. A study on Carbon dioxide emissions in a magazine article on May 2009 found the following evidence: â€Å"In the 19th century, scientists realized that gases in the atmosphere cause a â€Å"greenhouse effect† which affects the planet's temperature. [The planet’s temperature will increase dramatically by the gases in the atmosphere absorbing the heat. ] These scientists were interested chiefly in the possibility that a lower level of carbon dioxide gas might explain the ice ages of the distant past. At the turn of the century, Svante Arrhenius calculated that emissions from human industry might someday bring a global warming. Other scientists dismissed his idea as faulty. In 1938, G. S. Callendar argued that the level of carbon dioxide was climbing and raising [the] global temperature, but most scientists found his arguments implausible. It was almost by chance that a few researchers in the 1950s discovered that global warming truly was possible. In the early 1960s, C. D. Keeling measured the level of carbon dioxide in the atmosphere: it was rising fast. Researchers began to take an interest, struggling to understand how the level of carbon dioxide had changed in the past, and how the level was influenced by chemical and biological forces. They found that the gas plays a crucial role in climate change, so that the rising level could gravely affect our future. † (Weart) This magazine article influence Americans to recycle because the article is geared to them. With the CO2 causing the increase in weather, it also causes the increase of the greenhouse effect. The CO2 can affect the climate change and the future of the world if the greenhouse effect increases. Causes of global warming exist and so do the effects. Revkin stated, â€Å"Americans lead in moving to a world where ‘fossil fuels have been largely modified for carbon recycling or replaced by carbon-neutral alternatives. † (Challenges to Both Left and Right on Global Warming) A result of increase of weather are polar ice caps and temperature rising. When the temperature increases, the polar ice caps will melt, causing glaciers to melt as well. Glaciers are made up of fresh frozen water and when they melt into the ocean, which is composed of salt water, the ocean currents will be altered. The result of ocean currents altering will also affect the species that live in the ocean. Some species live in salt water and others live in fresh water, but cannot live in both. The increase of water in the ocean will cause evaporation to increase. The increase of probability and intensity of droughts and heat waves will increase as well. With all the water in the ocean and the weather increasing, it will cause warm water and more hurricanes. Global warming has both causes and effects. It is one of the most major crisis that will affect the world today, yet the most difficult to resolve. If I had a choice, I would make everybody recycle and you use resources. I would also have Americans reduce the Carbon emissions. Even if we stopped emitting greenhouse gases today, the Earth would still be warm by some kind of degree Fahrenheit.

Teenage Curfews Essay

Everyone has a different opinion when discussing the issues of curfews. Councils across Britain have tried to come up with a strategy for young teenagers to remain indoors between specified hours, typically at night. Police forces are trying to impose that teenagers must have a curfew. Teenagers themselves do not get to have a say in the matter. 90% of teenagers already have a curfew that has been imposed by their parents. Although every teenager is different, the local community, the local council and the police believe putting a curfew in place will stop a lot of crime, vandalism, underage smoking, drinking and sex. One of the worries for putting a curfew in place is how will the teenagers react? The police have knuckled down on teenagers. If they see people under the age of eighteen smoking, they have the right to take their cigarettes off them but have to break them up in front of the smoker. If people under the age of eighteen also are caught with alcohol (usually in a crowd) they also have the right to take their bottles but have to pour the alcohol out in front of them, but if there is a couple of youths drinking in the streets they can get lifted or even charged. The two types of curfews are complete curfews and partial curfews. First of all a complete curfew is in place constantly. So, for example, if police find a teenager out on the streets past a certain time they have the right to take them home or even to the cells if they had been causing bother. Secondly, a partial curfew is put in place when there are particular times where anti sociable behavior has taken place, for example when it is a weekend or school holidays and teenagers can be out all day and night with no adult guidance to keep them from starting trouble. Some people believe that a curfew should be put in action because it keeps teenagers of the streets and stops them from behaving antisocially. It is good for parents to know where their children are and for them to know they aren’t out on the streets causing trouble so it can make parents feel more relaxed. 75% of adults would agree that having a curfew in place is to protect their children and keep them out of troub le. A common saying coming from parents is â€Å"A lot of the worst activities teenagers can get involved in happen later at night, so if the teen is in at the time they are given it well help keep them out of trouble.† It’s stereotypical to think all the crime happens late at night but the majority of crime that does happen is at night so

Operations Management in Daimond Manufacturing Essay

Definition Operation Management is the activity of managing the resources which produce and deliver goods and services (Slack et al, 2010). These activities commences from the very initial production stage of information gathering right up to the final stage of consumer consumption of the product. Every organization does operation management even if they do not notice it. All organizations produce goods and/or services and to create goods and/or services, the organization must perform a number of operations which must be effectively and efficiently managed. 1. 2 Role of Operations Management Operations Management is of prime importance in all sectors, cells, functions, units and groups within the organization. An organization is a system and according to the business dictionary, (http://www. businessdictionary. com/definition/system. html) a system is ‘An organized, purposeful structure that consists of interrelated and interdependent elements (components, entities, factors, members, parts etc. ). These elements continually influence one another (directly or indirectly) to maintain their activity and the existence of the system, in order to achieve the goal of the system’. Read more: http://www. usinessdictionary. com/definition/system. html#ixzz2QSyXAP1f . All employees are part of this system and have a common interest in making the consumer to receive goods and/or services in the best way possible. So I will say every manager in every part of the organization is to some extent an operational manager. According to James (2011), the role of operations manag ement is to manage the transformation of an organization’s inputs into finished goods and services using processes. Processes are actually present in all areas of the organization from Human Resource to Finance to Marketing to Procurement etc. 1. The ‘Input – Transformation – Output’ process Resources can either be transforming resources or transformed resources. After the transformation process is complete, transforming resources give rise to transformed resources. According to James (2011), there are 2 main types of transforming resources: * Facility which comprises of land, building, plant and equipment. * Staff which comprises of everyone involved in the operation process. There are 3 main types of transformed resources: * Material. Transformation can be physical (manufacturing), by location (transportation), by storage (warehousing), or by ownership (retail). Information. Transformation can be by property (accountant’s information), by p ossession (market research), by storage (libraries) or by location (telecommunication). * Customer. Transformation can either be physical (plastic surgery), by storage (hotel accommodation), by location (airline transport), by physiological state (hospital), or by psychological state (entertainment). Input Output Input that will be transformed * Material * Information * Customer Input that will transform * People * Facility * Goods * Services Transformation Input Output Input that will be transformed * Material * Information * Customer Input that will transform * People * Facility * Goods * Services Transformation Figure 1: The ‘Input-Transformation-Output’ process 2 Operations Strategy 2. 1 Definition Strategy is defined by Johnson et al, (2008) as ‘the direction and scope of an organization over the long term: ideally, which matches its resources to its changing environment and in particular its markets, customers or clients so as to meet stakeholder expectations. ’ 3. 2 Levels of Strategy Strategy can be viewed from 3 levels which are: The Corporate level: This level looks at the long term position of the company. It answers questions like ‘where will the organization be in 10 years? Or are we going to launch a new product in a new market? ’ The Business level: This level looks at the market and is concerned with the goods and services which the organization has to offer. It answers questions like ‘how do we compete? ’ The Functional level: This level deals with the functional aspect of the organization like finance, marketing, human resource etc. It answers questions like ‘how do we manage our financial resources’. . 3 Operations Strategy Operations strategy is the total pattern of decisions which shape the long-term capabilities of any operation and their contribution to overall strategy, through the reconciliation of market requirements with operations resources (Slack and Lewis, 2011). A 5 step structure has been designed by Hill (2005) so as to design and understand a goo d operation strategy. The steps are as follows: 1. Define Corporate Objectives Here, long term objectives are set-up so as to give the company balance and a good direction. At this stage, Sparkle does environmental scanning and the company also looks at its core competences, core processes and its global objectives. Performance Indicators (KPIs) are also established here so as monitor the accomplishment of these objectives. Top management uses a number of models which includes PESTEL, SWOT and Porter’s 5 forces. See appendix A. 2. Set Marketing Strategies Here Sparkle identifies the market it wants to compete in and then it looks on how to compete in these markets. Ansoff’s matrix is used. | New Product| Existing Product| NewMarket| Diversification| Market Development| Existing Market| Product Development| Market Penetration/ Market Growth| Figure 5: Ansoff Matrix. Source: Kaplan Financial Ltd, 2008. Sparkle uses the market penetration/market growth pathway for now. With time, they will start manufacturing out of the UK thus implementing the market development strategy. It is yet not known if they are thinking of one day starting up the production of a new product. 3. How do we gain competitive advantage? At this stage of Hill’s structure, the organization is to find ways to make its product win other products in the market. For this to happen, the organization must have a base to make its competition and this base is usually one or more of the following performance objectives: speed, quality, cost, dependability and flexibility. See chapter 3. Sparkle uses the above performance objectives to gain competitive advantage but it must be noted that, competitive advantage must: * Be real * Add value (to the consumer) and * Be difficult to imitate. 4. Choose a delivery system Here, the organization has to choose an appropriate delivery system so as to meet up with speed and maybe dependability. In Sparkle, most orders are icked up by the customer but if not, Sparkle uses their vans which have a high level of security for close distances or they post the jewelry for faraway distances. 5. Choose your Infrastructure The company at this phase has to choose all necessary infrastructures that it has to obtain so as to gain an edge over its competitors in the market. Different organizations in different industries wi ll need different types of infrastructures. But in the diamond manufacture industry, the infrastructures are almost the same and can hardly give competitive advantage. 3 Performance Objectives In the present congested and very competitive business environment, companies must do something extra so as to stand out of the crowd. For them to do this, they must react to what customers value and these fall into the following category. They are called performance objectives. 1. Cost 2. Quality 3. Dependability 4. Reliability 5. Speed Sparkle is aware of the tight competition in the diamond market and it takes its performance objectives very seriously so as to gain competitive advantage. Before achieving the above performance objectives, they must achieve the 4 Cs (see appendix B). * Cost. The principle of cost is doing things cheaply. Sparkle changes its processes, its materials and its suppliers every now and then so as to operate on a lower cost scale. They buy rough diamonds directly from the companies who buy them from the mine and sometimes the make orders directly from the mine so as to reduce cost because the more intermediaries there are, the higher the final price. They sometimes buy more rough diamonds than what the actually need so as to gain discount for bulk buying. They automate most of their processes to reduce the number of hours worked by human beings thus reducing total wages. Quality. This involves producing durable high standard error-free goods that consumers perceived to the good. In the fashion business, quality is king because consumers are becoming more conscious of what they wear. One can say that everything in the diamond industry is of good quality so in this kind of high standard industry, quality is not the issue but superb quality. Spark le buys the best of the rough stones which are hand-picked one after the other so that their final product will be of the best quality and they will have very little waste during production. * Dependability. This is doing everything on time so as to keep commitments and promises made to customers. Sparkle has a track record and reputation of never keeping its customers waiting. Customers’ diamonds are always fully processed before the pick-up date. Customers love coming to this organization because they know they can rely on them when it comes to delivery. There was a scandal in March 2008 in Real Diamonds where a couple arrange for their wedding rings costing thousands of pounds to be manufactured but the company was unable to meet up with the due date so the couple had to use different rings for the wedding. Flexibility. This is being able to change what you produce or how you produce it. Sparkle is very flexible in regards to their products because they produce apparently anything requested by the customer. We pride ourselves on being different, you won’t find our jewelry just anywhere, we appreciate that you want something special to you (Source: sparlediamonds. com/abo ut). They manufacture dressing rings, marriage rings, engagement rings, necklaces, earrings, bracelets, bangles and designers jewelry out of diamond. Over the years, they have come up with different diamond designs thought by others as impossible and have now gained a name as being the company that uses diamond to manufacture anything and everything. On the other hand, their production process is flexible too but not very flexible. They change little bits of their production process all the time to cut down cost and to increase the quality of the diamonds but this change is never a big change (process improvement). Figure 5: Different items made out of diamond. Source: * Speed. This can be described as how responsive an organization is to the customers’ demands and complain. It is a measure of the time between a customer’s order or complain to the time when that customer’s order or complain is sorted out fully. Sparkle is very fast in dealing with complains. Any customer who comes to the company with a complaint is not allowed to leave when the matter concerned has not been resolved. Complains made online take a maximum of 2 working days to be dealt with and those by post takes a little more time. Figure 5: Different colors of diamond. Source: 4 Product Design . 1 Definition Product/service design is the process of defining the specification of products and/or services in order for them to fulfill a specific market need (Slack et al, 2009). According to Russell and Taylor (2009), new product designs can provide a competitive edge by bringing new ideas to the market quickly, doing a better job of satisfying customers’ needs, or be ing easier to manufacture, use and repair. Product design is of great importance in any organization because consumers are becoming more and more conscious of the products they consume and their contents. Almost everybody in the organization is involved in product design because bringing in a new product design is not just about the market requirement but it is also about anticipating future demand and this needs imagination and creativity. In coming out with a good product design, market requirements, technical issues, cost, quality, investment information and the target market must be considered and dealt with appropriately. Diamond design ‘step by step’ Various steps are followed when coming out with a good diamond design. 1. Generating Ideas Ideas to bring up a new diamond designs can come from anywhere and comes from everywhere. Some organizations look only within the organization and come up with a diamond design but this approach is very dangerous because it can easily back fire leading to a poor design. Ideas in Sparkle usually come from: * The customers who will use the product. Most at times, the customer comes to the organization with a design in mind. The design team in the organization then sits with the customer and adds ideas to perfect the customer’s request. * The employees who serve the customers. These groups of persons know exactly what customers wants because they are the people who take customers specifications, demands and complaints. They play an important role in the creation of a new design. * Competitors and any new technology. Sparkle sometimes looks at the designs of its competitors like Avi Paz and tries to modify it so as to create something better than theirs. * Research and Development (R&D) Department. One of their major roles in the organization is to look for new possible designs which will entice customers. It is at this stage that the diamond color, size, weight, cut grade, clarity grade, carat weight, laser inscription and shape is decided. Figure 4: Computer simulated diamond designing in progress. Source: www. sparklediamonds. com 2. Product Screening According to Slack et al (2009), not all concepts and ideas generated will be capable of being developed into products and/or services. Each idea generated is taken and examined to see whether or not they are acceptable, feasible and vulnerable. Fig 5 illustrates. Figure 5| Some typical evaluation questions for marketing, operations and finance. | Evaluation Criteria| Marketing| Operations| Finance| Feasibility| Is the market likely to be big enough? | Do we have capabilities to produce it? Do we have access to sufficient finance to develop and launch it? | Acceptability| How much market share could it gain? | How much will we have to reorganize our activities to produce it? | How much financial return will there be on our investment? | Vulnerability| What is the risk of it failing in the market place? | What is the risk of us being able to produce it acceptable? | How much money could we lose if things do not go as planned? | Fi g 5: Slack et al (2009) Some typical evaluation questions for marketing, operations and finance [e-book] p. 89 3. Preliminary Design At this stage, the design is reviewed by the cutters and polishers to see if the can really produce the diamond and any unnecessary complexity in the diamond’s design is eliminated because such complexities can build cost. For example; there are some unnecessary and unnoticed cuts in a diamond’s design but these cuts could split the whole diamond if not done carefully. Because customers will not even notice the additional cuts and even if they do, they will not be willing to pay an addition for it so the cuts are eliminated. Figure 4: Different diamond designs (drawing). Source: Figure 4: Different diamond designs. Source: 4. Final Design After all the above has been done, a prototype is then created out of glass and tested to see if it meets market requirements, technical requirements and the financial limit. Tangible prototypes are created and virtual (computer simulations) model too to properly assess the diamond before production goes any further. Sometimes, customers are called in to see the prototype and give their feedback from which some adjustments may be made on the product’s design. An after acceptance, diamond cutting commences. Figure 5: Prototype diamond made out of fine glass. Source: 5 Process Design 5. 1 Definition Process design is Sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, machines, money) to convert inputs (data, material, parts, etc. ) into outputs. These outputs then serve as inputs for the next stage until a known goal or end result is reached (www. businessdictionary. com). Read more: http://www. businessdictionary. com/definition/process. tml#ixzz2QTQAtoBi When deciding a product design, it is advisable to simultaneously come up with a matching process design. This will entail the flow of the process and Barnes (2008) said that the design of processes is different in all organizations and these designs will be based on the volume and variety of the demand for the product in the market. He further categorized the processes under project, jobbing, batch, line and conti nuous. Types of Processes There are different production processes namely project, jobbing, batch, line and continuous. See Appendix C. Sparkle is in a business of very expensive products which are very small in size so they do jobbing. Customers usually give orders which are produced by the company (make to order). They usually hold little or no fully-processed inventory. The Production Process Diamond ore is sorted by density using X-rays. Before that technology became available, grease belts were used to separate diamonds from the rest of the ore, due to the diamonds’ greater tendency than other minerals to stick to grease. Rough diamonds are then set to be cut as gemstones in the cutting laboratory. A diamond has different cuts and different professional specialize on different cuts. This is the most daunting task of diamond production because a bad cut will cost the company a fortune. Figure 5: Diamond plan before cutting. Source Cutting produces the facets associated with a diamond. The angles of the facets maximize light, giving the diamond its greatest possible luster (dispersion of white light). The cutting process can take as much as 50% of a rough diamond’s weight. Figure 5: Illustration of diamond facets. Source: A number of factors come into play when deciding how a diamond should be cut. X-rays are employed to analyze the stone’s crystallographic structure, its hardness and ability to cleave. The diamond’s flaws are considered, and the cutter decides which to remove and which can remain. Either a hammer or a diamond saw can be used to split the diamond – the hammer is quicker, but the saw is surer. Figure 5: Diamond cutting. Source: A number of institutes in the diamond industry offer courses for diamond cutters, but the bulk and most crucial part of the training for this delicate trade take place during the cutter’s apprenticeship. A diamond may get its final cut from many skilled hands: the diamond marker or designer; the diamond sawyer; the diamond cutter or brute; the cross-worker; and the brillianteer. After the initial cutting, diamonds undergo the polishing stages, usually performed by a technician as the process is a standard one. Polished diamonds are reexamined for flaws, which can be addressed through enhancement techniques or disguised when set in jewelry. Figure 5: Diamond Polishing. Source: Finally, the polished diamonds are sold to individuals, retailers, wholesalers and jewelry shops. Figure 5: Diamond quality check. Source 6 Planning, Control ;amp; Innovation In any good type of project or manufacture to be successful, it must be planned at the very beginning and at the end, it has to be controlled to make sure that the planned processes and cost is not very different from the actual. Businesses must also continuously innovate so as to move line to line with the changing tastes of consumers and to beat numerous designs from competitors. 6. 1 Planning Eur says this about planning â€Å"It lists the phases and encapsulates all the main parameters, standards and requirements of the project in terms of time, cost and quality/performance by setting out the ‘Why’, ‘What’, ‘When’, ‘Who’, ‘Where’, and ‘How’, of the project. † Planning therefore looks at the entire process, product and project but in an imaginary form which has not yet happened but it is wished that it should happen that way. 6. 1. 1 Advantages of Planning 1. It gives direction of what has to be done and how it has to be done. 2. It assigns responsibilities on every person thus answering â€Å"Who does what? 3. A good plan will see problems a project, product or process will encounter before the problem strikes. 4. A plan helps us to manage cost, quality and design side by side with the profit we will want to make on the product. 5. Plans are used to assess how well a product, process, p roject or person has done. 6. 1. 2 Disadvantages of Planning 1. It is usually made up by top management and given to the employees down the management ladder who just follow it. 2. Plans are usually followed to the latter. Even when some changes have to done, it is not because a plan is being followed. 3. Plans are usually just estimates and it has no use in turbulent economic environments as the plan and the actual are usually very different. 6. 2 Control Control involves measuring the actual results against the plan and then taking action to adjust actual performance so that it moves in line with the plan. So in other words, control is only possible when we have a plan. Control has a feedback phase and this involves adjusting the actual to move in line with the plan or reporting differences between actual and budget so that there may be no such discrepancies in the future. 6. 3 Innovation Innovation is defined by the oxford dictionary as â€Å"changing something established by introducing new methods, ideas or products. † Just like there is no control where there is no plan, there is no innovation where there is no control. They all rely on one another. After control has been done, feedback is sent back and improvement or innovation is made. But in the complex business environment operating now, innovation just not just come from within the company but from outside the company like from competitors and especially from the consumers due to the rapid change in customers taste, design and fashion. In the diamond manufacture industry, there are many different innovative ways manufacturing diamonds and Sparkle has had the following innovations: 1. The Supercut design Sparkle has introduced the innovative supercut design into the industry: a patented ideal emerald cut, with more than twice the facets of a traditional Emerald – providing unparalleled brilliance and fire. The culmination of three years of research, the supercut gives extraordinary brilliance and reflection and this innovation gives Sparkle competitive advantage in terms of having good designs with extraordinary glittering. 2. Precision cutting Since 2010, Sparkle has brought in a technology of cutting the diamonds using computer software and this cut is so exact that less than 0. 000002% waste is created from diamond cutting. Waste use to be about 0. 5% during diamond cutting and this innovation has caused drastic cost saving making Sparkle to be more competitive in terms of cost. 3. Sparkle offers a wide range of jewelry manufacturing processes, including design, modeling, prototyping, grooving, setting, finishing and meticulous quality control; all featuring our own fine diamonds, and designed for clients’ to sell under their private labels. . 4 The ‘Planning – Control – Innovation’ Cycle. From the above notes, it can be seen that planning, control and innovation work together. Sparkle’s cycle looks like this. Plan Procurement of unrefined stones. Process the stones into fine diamond. Sell and make a reasonable gain. Actual Procurement of unrefined stones. Process the stones into fine diamond. Sell and make a reasonable gain. Control Looks at the difference between what was planned and what actually happened. External Information Customer specific design New tastes and fashion Design from competitors Market Research (R&D) Feedback and Innovation Plan Procurement of unrefined stones. Process the stones into fine diamond. Sell and make a reasonable gain. Actual Procurement of unrefined stones. Process the stones into fine diamond. Sell and make a reasonable gain. Control Looks at the difference between what was planned and what actually happened. External Information Customer specific design New tastes and fashion Design from competitors Market Research (R&D) Feedback and Innovation Figure 7. The ‘planning-control-innovation’ cycle. 6. Changes happening in the diamond industry. * Researchers are on the verge of bringing in new materials which reflect light better than diamond and these materials are stronger and more durable than diamond. But, they will be far cheaper than diamonds and this is going to be a big problem to diamond manufacturers as the demand for diamond will surely drop. An example is synthetic stones. * In response to growing concern over illic it trade in conflict or â€Å"blood† diamonds, the United Nations General Assembly established the Kimberley Process Certification Scheme in 2003. This scheme is going to make sure of the source of every single diamond so as to ensure that they are from a genuine source. This happening will increase the price of diamond because more than 55% of diamonds are from Africa and the mines there are operated by very cheap labor and sometimes by slaves, women and children. The UN will come in and stop this practice thus increasing the cost of labor, working conditions and ultimately the price for diamonds. 7 Quality Management Quality is one of the performance objectives and it is taken very seriously by all organizations because if achieved, may give them competitive advantage. Some organizations rely on quality more than others and the fashion and health industry takes quality as primary considering the fact that people want to look good and in good health. Quality is a matter of perception so what can be called quality for A might not necessarily be called quality for B. According to Garvin (1984), the attributes in quality for a product are: * Performance * Features * Reliability * Conformance * Durability * Serviceability * Aesthetics * Other perceptions Parasuraman et al. (1985), on the other hand listed 5 attributes in defining what is quality of a service? nd they are: * Reliability – Are we always going to get on time delivery? * Responsiveness – Are the always going to respond quickly to our demands and complaints? * Assurance – Are we assured of their competence? * Empathy – Does the organization feel and understand customers’ needs and concerns? * Tangibles – Is the physical surrounding conducive? 7. 1 Qu ality in the Organization But in relation to Sparkle, the best definition of quality is that as per Slack et al. (2009) â€Å"quality is consistent conformance to customers’ expectation† and I will say and even surpassing those expectations. Sparkle uses total quality management as their quality management technique. They look for means and ways to maintain and continuously improve quality at each stage of the production process. All employees meet once a month to discuss on how to improve the organization’s present performance. Books by Deming, Crosby, Juran, Hill and other total quality management gurus are in the company’s library and research department for employees to read and be motivated to contribute into the organization’s performance. All employees are made to know that quality and customer’s requirements being met comes before any other thing. The organization has a suggestion box where employees can write any inspiring idea that comes in mind and this box is emptied every day and read by the research staff and it is summarized and sent to the manager examine. 7. 2 The Cost of Quality Quality has a cost which is like a double-edged sword meaning that good quality will have a cost and bad quality will also have a cost. 7. 2. 1 The Cost of Good Quality This is also known as the cost of quality assurance. Sparkle has a lot of this cost because they are continuously always trying to get better in quality all over the organization so as to better serve customers’ needs. The cost of quality assurance is further divided into prevention cost and appraisal cost. * Prevention cost is the cost of trying to make everything right on first attempt and some of this cost are: * Sparkle does not give a command for precious stones and wait for the stones to come. They go to the supplier’s premises and pick the stones one after the other and not in groups to ensure the best stones are taken. The supplier charges more for this. * The cost of designing the jewelry in a computer automated system and running several checks with other very expensive bespoke software before the design is confirmed. Sparkle trains its employees every 6 months and buys books to update them on new technologies and to keep their skills up and awake. * All employees are taught a wide variety of skills so that if a certain employee is not available to do a specific thing, there will always be another to do it. * Appraisal cost is concerned with controlling quality and this is achieved by testing the process before the product is manufactured and testing the product before it gets to the customer. Some of these costs are: * The cost incurred in testing all equipment, machines and ensuring staffs are fit and able before any diamond is processed. The cost of checking the diamond after manufacture by employees and with the use of a computer aided personalized software which is very expensive to make sure that the diamonds are flawless. * The time spent in testing the diamonds ensuring the pass all the set of test before and after manufacture. 7. 2. 2 The Cost of Bad Quality All organizations including Sparkle wants to evade this cost because it is very dangerous and it can even bring down the entire organization in a blink of an eye. The cost of bad quality is divied into internal failure cost and external failure cost. Internal failure cost is cost incurred before the product reaches the customer. Some of this cost are: * The cost of scrap. Diamonds are very expens ive so any little scrap of badly shaped diamond is worth a whole lot. So Sparkle makes sure the best quality diamond is procured and diamond cutting should be not less than perfect. * The cost of reshaping ill-shaped diamonds and gluing broken once. * The resources lost in repairing diamonds. Labor, machine time, and electricity are used which should have if the diamonds were made right the first time. External failure cost arises after the product has been received by the customer and some of this cost include: * The cost listening to customer complaints and responding to them. * The cost of replacing a defective diamond which a customer has rejected. This can cause the organization a fortune. * The customer might have to take the company to court and the organization will pay a huge sum if the lost the lawsuit. Some compensation may run to millions of pounds and could bring the organization to its end. * One of the most dangerous costs is that which we don’t see. An example is the lost sale and contribution. When a customer is dissatisfied, he will most at times not want to come back and he will discourage a potential customer who will discourage another customer to come to us. Saying all this, quality should be treated like an egg in the midst of rocks. 8 Supply Chain Management 8. 1 Definition Supply Chain is the management of the interconnection of organizations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services (Slack et al. 2010). A supply chain is a holistic network starting from the sourcing of material, through its transportation to the organization’s premises, to manufacturing, to storage and warehousing and finally to consumers. So it is a whole system and it works as one therefore is one part of the chain is broken, the whole system will fall apart and consumers’ will not be satisfied. 8. 2 Sparkleâ⠂¬â„¢s Supple Chain Stage 1 Sparkle’s supply chain starts from the diamond mines in Africa which produce more than 50% of total diamonds to mines in India, Russia, Canada and Australia. The mines usually dug very deep but the deepest diamond mine runs for about 160km passing through sand, rocks, and gravel to be blasted drilled, crushed and processed. It should be noted that only 20% of diamonds from mines can be polised and used for jewelry; the rest is used for industrial use. The stones picked here are very rough still with no beauty (see figure 10). Stage 2 Companies and independent buyers go to these mines and buy the rough stones from the mine owners and take them to their premises for processing. These stones are then processed to make them a little bit more presentable so that diamond manufacturers can then buy them and further process them into diamonds. Diamonds at this stage looks like that in figure 11. Figure 8: Trapping stones to look for diamonds in an African mine. Source: Figure 9: A typical unprocessed diamond. Source: Figure 10: Unprocessed diamonds directly from the mine. Source Figure 11: Diamonds which have been slightly processed. Source: Stage 3 Sparkle buys the diamonds in fig. 11 and examines them with the use of a computer aided personalized software. After a series of checks, rejected diamonds will be sent back to the suppliers and the good ones will be cut into different shapes so as to give the greatest value. After cutting, the diamond goes through computer aided software to confirm its perfection and after this, it is polished and cleaned. Sparkle will also buy what the diamonds are going to be fitted on because people will scarcely buy a chunk of diamond. Diamonds are usually fitted on rings, pens, earrings, belts and many more (see figure 14). These things are usually bought from top manufacturers with good design and quality and they are usually very expensive. Figure12: Diamond cutting in Sparkle. Source: Figure 13: Diamond polishing in Sparkle Source: Stage 4 After polishing and the diamond have an unblemished shine, shape and color, it is then taken by the customers. Some of the customers ordered just a few and sometimes even just one special diamond while other big customers like jewelry shops order bigger quantities at ones. It is either Sparkle delivers the diamond to the place agreed by the customer or the customer comes to the organization’s site on an agreed date and after a phone call to pick up the diamond. The supply chain ends after the diamond has reached the customer. Figure 14: Finished diamond ready for the customer. Source: Figure 15: Diamonds bought by jewelry shops. Source: The Mine The Cutting Company Polishing Customers Jewelry Shops Manufacturing The Mine The Cutting Company Polishing Customers Jewelry Shops Manufacturing The supply chain of Sparkle is a good and effective. Its success can sometimes be attributed to the information technology they use. They use the Enterprise Resource Planning (ERP) system which brings in data from all sources and this is used to know when suppliers have diamonds and the variouse categories, to know when jewelry shops are running short of iamonds, and many more (all discussed in chapter 9). Figure 16: Sparkle’s Supply Chain 9 Information Systems As seen in chapter 1, â€Å"Operation Management is the activity of managing the resources which produce and deliver goods and services† (Slack et al, 2010). For these activities to be properly managed, it needs the help of automated process and compu ter aided techniques. Information systems are found throughout an organization and if used well reduce costs and can be a source of gaining competitive advantage. 9. 1 Computer Aided Techniques Sparkle uses information systems in many ways in its business. Listed below are some specialized computer aided programs used. 1. They use Computer Aided Process Planning (CAPP) which gives an optimum layout of the cutting steps and their sequence (this is different for different diamonds). There are many diamond cutting machines and they all have different cutting styles and they are operated by specialist in the different cutting sectors. So the CAPP examines a diamond and gives different possible steps on which machine to use first and which not to use so as to minimize waste and give the diamond the best possible cuts so as reflect light in an optimal way. 2. They use Computer Aided Designs (CAD) to design the shape of diamonds on a computer and finished diamonds can actually be seen even before processing starts. If an error is made in the design, it can be corrected but this could have been impossible without CAD. 3. The also use Computer Aided Engineering (CAE) which takes the drawings and designs from the CAD and test them for perfection. Different test are administered and the flawlessness of a diamond can be confirmed even before manufacture. 4. Automated Material Handling (AMH) system is also used. Diamonds are very expensive and so care must be taken at each step. The AMH system improves efficiency in diamond movement, storage and retrieval. 5. The Laser Security System (LSS) is used where diamonds are kept be it rough stones, semi-processed diamonds and fully processed diamonds. Invisible laser rays crisscross the diamonds and it needs a password to be deactivated. Only top managers have the password and the password of each of them is different making it easy to know who accessed the diamond safe. If someone tries to pass through the laser rays, it can kill or paralyze them and the security alarm is automatically triggered and an automated call goes to the nearest police station. . Security Camera Systems (SCS) make use of Closed-Circuit Television (CCTV) at all times to monitor the whole building especially where inventory is held. 7. The Inventory Control System (ICS) gives detail information about each diamond rough, semi-processed or fully processed held in inventory at any point in time. Management must no go into the safe to see what t hey have in stock because the ICS does it all. This system is also used online to make customers see the diamonds, its specification and all other relevant information. Figure 16: The CAD system used to design a blue diamond. Source: Figure 17: The virtual version of the diamond in fig 16. Source: 9. 2 Pros and Cons of Information Technology (IT) IT is a very necessary tool in any organization be it a big or a small one. IT has advantages and disadvantages. They are listed in Appendix D including ‘Why IT cannot replace Human Beings’. 9. 3 Information Systems ‘Information system can be defined as a set of interrelated components that collect, process, store and distribute information to support decision making and control in an organization’ (Laundon & Laundon, 2006). Most organizations use some form of computer-based technology to accumulate, organize and distribute information’ (Ted, 2011) and Sparkle is not an exception. They use a set of interrelated information systems. 9. 3. 1 Transaction Processing System (TPS) This system is used to account for day by day transactions of Sparkle. It records all sales, purchases, expenses, income, tax, bills paid, equipment bough t and all other transactions performed by organization. This system is also used to account for employee’s attendance, absences, pay, overtime, bonuses, remuneration, and all other things concerning the employees. . 3. 2 Supply Chain System (SCS) This system deals with customers and suppliers. It monitors the stock in the jewelry shops so as to know when to give the shops an offer. It monitors the stocks which are demanded more and those demanded less so as to know when to produce. It tracks frequent and valuable customers and grades them into groups so as know how to give discounts. This system also monitors the stock in the cutting companies. It looks at the new stocks and compares price side by side quality so as to know which supplier to order rough diamonds from. 9. 3. 3 Knowledge Management System (KMS) In Sparkle, all manufacturing processes are recorded and stored in the KMS. Any ideas gotten either by inspiration, customer’s requirement, employees’ suggestions or business intelligence are stored in the KMS for future use. Sparkle is said to be very innovative and has this edge over its rivals because of its mastery of the KMS. When a new employees is recruited, he has 2 weeks probation where he is taught how to operate in the organization and how processes function. Before the implementation and use of the KMS, probation was 3 months so this system has greatly reduces learning time. 9. 3. Management Information System (MIS) This system takes all the information from the above systems and summarizes them into financial statements and reports. It is used by management to make decisions on how to run and control the business. 9. 3. 5 Decision Support System (DSS) This system looks like an advance of the MIS. It takes data from all sources (internal and external) and su mmarizes them for top management to make decisions on the long term plans of the organization. Information from this system appears as statements, reports, charts, graphs, ratios, statistics and trend analysis. . 3. 6 Enterprise Resource Planning (ERP) This can be called the overall system. It takes information from all sources of the organization and brings them together in one large database. From there, required information is taken out and implemented or used to make decisions in Sparkle. It should be noted that all other systems deposit their information in ERP. Figure 18: Example of ERP. Source: LSBF MBA Intake 14, SOM Lecture 3, Session 9, Slide 34. 9. 6 Intranet and Extranet Sparkle uses intranets to deal with its employees and management. Staffs all have a particular passcode which the use and your code depends on your position within the company. Some passcodes can access some areas which other codes can’t. They also use extranets to communicate and share information with customers, suppliers, some competitors and the government. This system is more secured and less vulnerable to attacks as compared to the internet. 10 Job Design It is said that the blood stream of any organization is money and I will say the skeleton holding an organization and making it stand up straight is its workforce. An organization manages resources so as to be able to deliver acceptable goods and services to its customers and one of these resources is its workforce. An organization’s workforce is its most valuable and the most complicated of all its resources because unlike other resources, humans have a mind of their own. To be able to deal with human beings, you must know what they like and this is different for different people but these needs though different are similar. In providing this, it motivates the employees and when motivated, they produce better output eventually yielding higher profits, quality and flexibility. 0. 1 Motivation Motivation is the urge to take action to achieve something or to avoid something (BPP, 2010). Motivation can either be intrinsic (wanting to satisfy an internal urge like being happy to be able to help others) or extrinsic (reliant on tangible rewards like money, fame and power). Continues in Appendix E. 10. 2 Empowerment This is the act of delegati ng work to employees making them feel more superior because of the added responsibility and new accountability. This is good motivation for many employees. ‘Job design is about how people carry out their tasks within a process. It defines the way they go about their working lives. It positions the expectations of what is required of them, and it influences their perceptions of how they contribute to the organization. It also defines their activities in relation to their work colleagues and it channels the flows of communication between different parts of the operation. But, of most importance, it helps to develop the culture of the organization – its shared values, beliefs and assumptions’ (Slack, 2009). In designing any job, the following have to be put into consideration. * Safety. Jobs should be design in a way that it will bring no harm to the employee be it physical, psychological, mental or emotional harm. Workers in the mines especially those in Africa are exposed to a lot of risk and still earn less than the minimum wage. The mine owners wanting to make more profits cut down on cost by reducing expenditure on employees’ safety. The employees of Sparkle all have safety equipment like hats and new ideas are being implemented to make the process safer. The organization has also fully insured its entire staff. * Legal and Ethical Issues. Jobs should be design in such a manner that those doing the job will not go against the law or their code of ethics. * Own time. Job design should create time for the employees to catch up on something other than work. For example visiting new places, being with their families or performing other social activities. Employees working in the mines have little of this, but Sparkle’s employees all have right to a paid holiday and taking permission to be out of work if the need arises. * Employee’s Ability. An employee’s ability to do the job or a range of task should be considered before designing the job. For example; only heavy built men carry cargo from the trucks into the warehouse because of their physical ability to carry heavy weight unlike their colleagues. * Wage and Benefits: In designing any job, the wage and benefits to be paid for the job should be considered if not the employee can be over-paid or under-paid for the job. 10. 3 Division of Labor Unlike traditional production approaches that stipulated that one person should know everything in the company so that he can serve any function, Henry Ford came in with the idea that one man should only know one thing and should be an expert in that thing. He suggested that with specializing in a particular function, the whole organization will be specialized and will give the best quality goods and services. So jobs should be broken down into smaller portions and given to different individuals who will specialize and bring forth quality cost-effective products. 10. 3. 1 Advantages of Division of Labor (Slack, 2009) * It is easier to learn. Short and simple tasks are easier to learn compared with long and complex tasks. This will be very advantageous when training new recruits because training will take a shorter time and it will be better mastered. Automating. Short and simple task are easily automated as compared to long and complex task. * Time. More time is spent on one long task compare to time if that task was broken down. This extra time is as a result of picking different tools up and putting them down, looking for equipment, thinking of what to do next etc. 10. 3. 2 Disadvantages of Division of Labor (Slack, 2009) * Monotony. The same small task will be repeated every hour, week, month and year. This will make the job boring and less fulfilling thus resulting to absenteeism, staff turnover and errors. Over-reliance. If one employee is absent, no other will be able to perform his duty and this may bring the whole production process to a halt. * No flexibility. Employees let to do one particular thing over the years turn to lose the skill of being able to learn another thing. So if the production process was to change, many employees will not be able to cope with learning how to perform a new task. * Physical Injury. The repetitive use of one part of your body let’s say arm or wrist will in the long run cause pain to that part. This is known as Repetitive Strain Injury (RSI). Sparkle teaches their employees a wide range of task during their probation but the employees are assigned to do just one thing when they fully start work. Teaching them a wide range of task is to expose them to the processes of the whole organization so that they can contribute ideas in the development of a department or process which does not involve them. Another reason for giving employees holistic training is to make an employee being able to do an absent employee’s work. This tactic was also implemented because the organization did not want an employee to feel indispensable. 0. 4 Job Design Approaches In coming out with a good job designing, the following approaches should be implemented:- 1. Job Simplification: The organization tries to the range of task and their complexities. Polishing diamond use to be a very complex task at Sparkle but with the introduction of DiamondShines TM a specialized software where diamond polishing is programmed with exact details. 2. Job Ro tation: This is periodically interchanging employees performing different task to do the task of the other. Sparkle does a lot of job rotation and this makes the employees’ job more exciting. Job rotation is successful in this organization because they train their employees to perform a number of task but if division of labor was strictly implemented, this approach could have been impossible because employee A will not have a clue of employees B’s task. 3. Job Enlargement: This involves integrating same level tasks to the ones already performed by the employees to make the job more exciting. This is not practiced in Sparkle. 4. Job Enrichment: This involves integrating different level tasks to the ones performed by the employees. The new tasks are usually higher level tasks giving employees more responsibility and decision making power. Sparkle once a week picks an employee randomly and gives him the power of a supervisory manager so as to see the changes and innovations he is going to bring to the organization. Sparkle also makes employees work in small teams and the organization creates a competitive strain amongst the teams. The competition amongst the teams brings a lot of hard work, efficiency and effectiveness.