Database Application at Amazon

A database consists of logically related data stored in a single repository, normally within a computer. The components of a database are columns, rows, tables, and keys. They are the building block of any relational database, and understanding their functions helps an organization to manage its data.Advertising We will write a custom essay sample on Database Application at Amazon specifically for you for only $16.05 $11/page Learn More Columns are single characteristics or facts about an entity within a database. Employee’s name, department number, customer’s name, and product price are examples of columns. A row contains data of one or more columns according to the design of a database; it describes a single instance of an entity. Columns and rows are contained in a table, making it necessary to group data logically. For instance, you can have a customers table that store customers’ details. Tables can be linked together by keys. A table can consist of a primary key, a foreign key, or both. A primary key is a field that uniquely identifies each row; and a foreign key is a key in one table that must match a primary key value in another table in order to establish a relationship or a link between two tables (Coronel, 2000). Amazon has been able to embrace the use of databases in order to manage its organizational records hence meeting its corporate objective. The company offers its customers a wide range of products, including music, toys, electronics, software, books, and clothes. These products are sold through the company’s website (Amazon.com) and managed by relational databases such as Amazon RDS (Vogels, 2009). Amazon’s database enables it to take online orders, manage supply, and coordinate many e-mails. The company records customer details in a table having columns such as names and phone numbers. Each row in a table contains individual customer records. Another table containing product de tails enable the company’s database to link product and customer tables through keys. When a customer selects a product, the product number identifies the item in the product table, thus enabling the company to manage product details with much ease. There are several data management issues that can be encountered by Amazon. First, the company’s database may run out of space because many people are now registering in e-market places.Advertising Looking for essay on computer science? Let's see if we can help you! Get your first paper with 15% OFF Learn More The increase in number of products may lead to little or no storage capacity. Second, handling many transactions tends to lower the operation of a database. This may lead to orders taking longer than normal. Third, data stored in the database can be hacked or destroyed by viruses. Besides, private information about users or customers can be leaked, leading to loss of privacy. References Coronel, R. (2000 ). Database Systems: Design, Implementation, and Management. (4th Ed.). Cambridge: Thomson Course Technology. Vogels, W. (2009). â€Å"Expanding the Cloud: The Amazon Realtional Database Service (RDS).† All Things Distributed. Retrieved from https://www.allthingsdistributed.com/2009/10/amazon_relational_database_service.html This essay on Database Application at Amazon was written and submitted by user Hayes Ramirez to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Strategic Planning Theories Essays

Strategic Planning Theories Essays Strategic Planning Theories Paper Strategic Planning Theories Paper Essay Topic: Citizen Kane DBA 822 Seminars in Strategy and International Business Strategic Planning Theories A Literature Review By; Benjamin J. Shuford III 8/24/10 Introduction: Strategic planning is a broad concept that has been introduced into the main stream practices of today’s corporations. Strategic planning can be defined as an organization’s process of defining goals, direction, and decision making processes that effect the allocation of resources that include capital and people. The term â€Å"strategy† is derived from the Greek word of â€Å"strategos,† which means literally, â€Å"general of the army. (Hart, 1965). The Greek tribes of ancient civilizations would elect a strategos to head their regiments during battles. These political rulers would follow the strategic advice from the council members about managing troops to win battles. From its early military roots on winning battles to becoming a pattern of purposes and policies that define a company and its busines s, strategic planning has become the primary focus of today’s diverse organizations. There are many theories that are used to describe how organizations view the strategic planning process. These processes are framed as models that are consistently being revised to fit the needs of an organization. This literature review will focus on some of these models and the theorists who developed them. This literature review will review theories from Igor Ansoff, Henry Mintzberg, Michael Porter, and Kenichi Ohmae. The purpose will be to gain a better understanding of how these theories shape organizational performance. An analysis will be conducted to evaluate the practice of and the future direction of these theories. The choice to review these four theorists over all of the others is because of their legacy and robust contributions to the field of strategic management. Ansoff was one of the earliest writers on strategy as a management discipline, and laid strong foundations for several later writers to build upon, including Michael Porter, Gary Hamel and C K Prahalad. He invented the modern approach to strategy and his work pulled together various ideas and disparate strands of thought, giving a new coherence and discipline to the concept he described as strategic planning. A debate between Ansoff and Henry Mintzberg over their differing views of strategy was reflected in print over many years, particularly in the Harvard Business Review. Ansoff has often been criticized by Mintzberg, who disliked the idea of strategy being built from planning which is supported by analytical techniques. This criticism was based on the belief that Ansoffs reliance on planning suffered from three fallacies: that events can be predicted, that strategic thinking can be separated from operational management, and that hard data, analysis and techniques can produce novel strategies. The strategic planning/management theories of Porter and Ohmae were derived from both Ansoff and Mentzberg. Ansoff was the originator of the strategic management concept, and was responsible for establishing strategic planning as a management activity. The Strategic Planning Process: Because of high competitive business environments, organizations must engage in strategic planning processes that clearly define and state the objectives of the organization. They must assess both external and internal factors to develop and implement a strategy to stay competitive. They need to evaluate the process and make needed adjustments to stay on track. In their search for sources of sustainable competitive advantage, researchers have come to realize that business performance depends not only on the formulation and successful implementation of a given strategy but also on the process by which competitive positions are created or maintained. Mintzberg was one of the first to point out that the realized strategy of an organization can strongly differ from the intended strategy and that the extent to which an intended strategy can be realized is closely related to the strategic process that exist within the organization (Mintzberg, 1987). In his early work, he identified three main types of strategy processes: planning, entrepreneurial and learning-by-experience. He described planning as a philosophical approach when he classifies strategic business thinking in ten schools of thought, which he describes in their historical and ideological context. Early theorist, such as Igor Ansoff, focused on the analytical aspects of strategy formation. The first three schools in Mintzberg’s taxonomy are therefore prescriptive and focus on how strategy ought to be formulated. One of the major premises of the prescriptive schools if the performance claim, which states that the more an organization engages in systematic strategic planning, the more likely it will result in above average returns. The prescriptive schools have been influential in the discourse of strategy formulation, but have failed to explain the process of strategy execution (Mintzberg, 1990). Mintzbergs School of Strategic Thought (Mintzberg and Lampel, 1990). | | | | | | | | School| Category| Foundation| | | | Design| Prescriptive| Engineering| | | | Planning| Prescriptive| Systems Theory| | | | Positioning| Prescriptive| Economics| | | | Entrepreneurial| Descriptive| Economics| | | | Cognitive| Descriptive| Psychology| | | | Learning| Descriptive| Psychology| | | | Power| Descriptive| Political Science| | | | Cultural| Descriptive| Anthropology| | | | Environmental| Descriptive| Biology| | | | Configuration| Both| History| | | | | | | | | | The Design school defines strategy formation as a process of conception. It began during the late 1950s and mid-1960s. This school puts emphasis on an appraisal of external environment and the internal situation using the classic SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Also shaping strategy formulation are the values of the organization’s management and an assessment of the organization’s social responsibilities (Selznick, 1957). The Planning school identified strategy formation as a formal process. It emerged in the mid 1960. It has resulted in a plethora of strategic planning models. The underlying foundation of all of these models is straightforward: divide the SWOT model into neatly delineated steps. Step1 – Set objectives – Establish and qualify goals or objective of the organization. Step 2- External Audits – Assess the external environment, using the SWOT analysis, and create a set of forecasts about the future. Step 3 – Internal audits – Typically this process is assisted by checklists and tables of topic to consider. Step 4 – Strategy evaluation – Organizations can use a variety of techniques ranging from return on nvestment (ROI), to risk analysis, to calculating shareholder value. Step 5 – Strategy implementation – This step creates a very detailed and formalized action plan. Objectives, strategies, budgets, and programs are all brought together into a master plan. The Positioning School defines strategy formation as an analytical process. This school began in the 1980s and was popular due to the notion of competitive strategy frameworks that were identified as five forces on an organization’s environment by Michael Porter. The significance of this school is that it emphasized the importance of strategies to any given industry. The Entrepreneurial school looks at strategy formation as a visionary process. This school of thought developed in the 1990s and using vision as a central starting point. Vision establishes the broad sense of direction while preserving flexibility to adapt to changing conditions. One of the advocates of the entrepreneurial school is Peter Drucker, who identifies entrepreneurship with management itself: â€Å"Central to business enterprise is†¦ the entrepreneurial act, an act of economic risk taking. And business enterprise is an entrepreneurial institution† (Drucker, 1970). The Cognitive school defined strategy formation as a mental process and started in the early 1990s. This school focuses on the mind of the strategist, drawing from the field of cognitive psychology. There is a large body of research that suggests that individuals encounter a variety of problems in making decisions that influence many situations in the management process because they are difficult to change and form once implemented. Individuals who practice this school find that they each have different cognitive styles that can distort decision making processes. The Learning school defines strategy formation as an emergent process. It started in the mid 1990s and follows the perspective that people within an organization learn how to use the organization’s abilities to change and adapt in a positive manner in order to respond to a changing environment (Quinn, 1980). This school is less concerned with the actual strategy that was formulated than with what it took to get a strategy implemented. The Power school, which began in the late 1980s, defines strategy formation as a process of negotiation and is based on the notion that the influence of power from the external environment will affect any organization, and in many cases politics will infuse an organization. This school views strategy as a political process that focuses on alliance building, empire building, budgeting, expertise, insurgency, counterinsurgency, lording, rival camps, whistle-blowing, and line versus staff. The importance of this school is that it has identified the political process as a reality that must be acknowledged and managed but that is not the sole means for making strategies within an organization. The Cultural school defines strategy formation as a collective process. The cultural school began in the early 1990s and can be thought of as a system of shared values, beliefs, and meanings held by staff members that distinguish the organization from other organizations. The dimensions making up this school include teamwork, honesty, control, decision making processes, rewards, and conflict. The Environmental school started in the mid-1990s and defines strategy formation as a reactive process. It views the forces operating outside the organization as active, while the organization itself merely reacts to these outside forces. The primary contribution of this school is that it attempts to bring the overall view of strategy formation into balance. This school emphasizes that the outside environment, the leadership, and the organization itself are actually responsible for strategy making. The Configuration school defines strategy formation as a process of transformation. This school began in the mid-1990s and attempts to integrate strategy by showing how different dimensions of an organization band together under particular conditions to define states, models, or ideas types. The premise of this school is that periods of stability and transformation can best be understood as life cycles of an organization. The key to strategic management is to recognize the need for transformation and manage the process of change without having a negative impact on the organization. Later developments in strategic management literature moved away from the prescriptive approach modeled on quantitative exact sciences and their inherent presumptions of a controlled world. The descriptive schools of thought are inspired on the qualitative social and cultural sciences and study what businesses actually did to be successful for other organizations to learn from their approaches. The descriptive schools move from a focus on a-priori strategic planning to a-posteriori dynamic strategy formulation and execution. For practitioners, the prescriptive schools of thought are very attractive. However, the descriptive schools are somewhat problematic to practitioners of strategic management because they do not provide straightforward recipes for success. The question raised by Mintzberg’s taxonomy of strategic thought and other similar taxonomies is how average practitioners can determine what strategy they should employ (Sokol, 1992). Fuller (1996) suggests that traditional strategic planning is under fire. Strategic planning in the classical model was developed in an era when the external environment was relatively simple, stable, and predictable, and when the behavior of a firm was viewed as being cybernetic. Strategic plans were primarily used as a control mechanism to reduce uncertainty and risk and to allocate power. They were internally focused because many of the company’s transactions were internal. As a result of slow or negligible environmental change, managers were able to consider their strategic options once a year through a process that is detached from the ordinary workings of the company. Consequently, the plans that are produced are used in litigation between a corporation and its business units, or among business units, for control of the decision-making processes. Hamel and Prahalad (1995) ask why it is that in so many companies strategic planning departments are being disbanded or dramatically downsized. This change in emphasis was driven by thinkers such as Hammer and Champy (1993) with their concept â€Å"business process re-engineering†. Hamel and Prahalad (1995) continue to make the claim that the problem is not with strategy but with the particular notion of strategy that predominates in most companies. What is being rejected is not strategy itself, but strategy setting as a pedantic planning ritual on one hand or as a speculative and open-ended investment commitment on the other. The academic scholars of the Planning School had determined a formal process for strategic planning and, in 1985; a study by Ginter (1985) was undertaken in the UK to determine whether this academic model had practical applicability. The 4,000 members of the Planning Executive Institute were asked a range of questions to provide a forum for assessing the perceptions of planning and strategic managers in practice. In excess of 1,000 members responded, and the researchers concluded that the model was a good framework for the way strategic planning takes place in the corporate environment. The Ginter (1985) paper described the strategic process as containing eight elements: (1) Vision and mission; (2) Objective setting; (3) External environmental scanning; (4) Internal environmental scanning; (5) Strategic alternatives (crafting strategy); (6) Strategy selection; (7) Implementation; and (8) Control. These elements are found consistently in the literature and taught in university business schools and undergraduate programs Thompson and Strickland (1998), Hill and Jones (1998), Stahl and Grigsby (1992). Viljoen (1994), and Hubbard (1996), all propound similar models in their educational texts. The central message of the Planning School is â€Å"formal procedure, formal training, formal analysis, lots of numbers† (Mintzberg, 1998). Many corporations adopted formal strategic planning as the fundamental driving concept for their business. Differentiation strategy When using a differentiation strategy, a company focuses effort on providing a unique Product or service, setting their offerings apart from competitors. Product differentiation fulfills a customer need and involves uniquely tailoring the product or service to the customer. This strategy allows organizations to charge a premium price to capture market share. The differentiation strategy is effectively implemented when the business provides unique or superior value to the customer through product quality, features, or after-sale support and service. Firms following a differentiation strategy can charge a higher price for their products based on the product characteristics, the delivery system, the quality of service, or the distribution channels. The quality may be real or perceived, based on fashion, brand name, or image. The differentiation strategy appeals to a sophisticated or knowledgeable consumer interested in a unique quality product or service and willing to pay a higher price for these non-standardized products. Customers value the differentiated products more than they value low costs. Our research identified three tactics which were significantly related to organizational performance in the companies we surveyed following the differentiation strategy. These critical practices included: 1. Innovation in marketing technology and methods. 2. Fostering innovation and creativity. 3. Focus on building high market share. Cost leadership strategy Porter’s generic strategy of cost leadership focuses on gaining competitive advantage by having the lowest costs and cost structure in the industry. In order to achieve a low-cost advantage, an organization must have a low-cost leadership mindset, low-cost manufacturing with rapid distribution and replenishment, and a workforce committed to the low-cost strategy. The organization must be willing to discontinue any activities in which they do not have a cost advantage and may outsource activities to other organizations that have a cost advantage. There are many ways to achieve cost leadership such as mass production, mass distribution, economies of scale, technology, product design, input cost, capacity utilization of resources, and access to raw materials. Cost leaders work to have the lowest product or service unit costs and can withstand competition with their lower cost structure. Cost leaders may take a number of cost saving actions, including building efficient scale facilities, tightly controlling overhead and production costs, and monitoring costs to build their relatively standardized products that offer features acceptable to many customers at the lowest competitive price. But the tactic that proved to be most critical to this strategy is the minimization of distribution costs. Focus strategy In a focus generic strategy, a firm targets a specific, often narrow, segment of the market. The firm can choose to concentrate on a select customer group (youths or senior citizens, for example), product range, segment of a market (professional craft persons versus do-it-yourselfers), geographical areas (East coast versus West coast), or service line. For example, many European firms focus solely on the European market. Focus also is based on adopting a narrow competitive scope within an industry that large firms may have overlooked. The focus strategy aims at growing market share through operating in a narrow market or niche segment more effectively than larger competitors. A successful focus strategy depends upon an industry segment large enough to have good growth potential but small enough not to be important to other major competitors. Focusing allows the firm to direct its resources to certain value chain activities to build its advantage. An organization may also choose a combination strategy by mixing one of the generic strategies of low-cost or differentiation with the focus strategy. For example, a firm may choose to have a focus differentiation strategy or a focus/cost leadership strategy. Based on our research, four tactics appear to be critical for organizations attempting a focus/low cost strategy: 1. Providing outstanding customer service. 2. Improving operational efficiency. 3. Controlling the quality of products or services. 4. Extensive training of front-line personnel. Focus/differentiation Another combination focus strategy is a focus/differentiation strategy where the organization has a unique quality product offered to a targeted market segment or niche. The significantly important tactics include: * Producing specialty products and services. * Producing products or services for high price market segments. In addition to generic strategies, Porter (1985) developed several other modular concepts. The five forces model is shown in Figure 2. Porter (1980) suggested that the task facing managers is to analyze competitive forces in an industry’s environment. He claimed that only five forces needed consideration. Porter (1980) argued that the stronger the manifestation of each of the forces, the more limited the ability of established companies to raise prices and to earn greater profits. This is pure Modernist, Neo-economic thinking. The simplifying and â€Å"blinding† role of externalities in economics, blinds Porter (1980) who is unable to postulate the role of government, or de-regulation, in his five factor, positioning model at the very time he was proselytizing the case of the US Airline industry under severe conditions of Reaganite, ideological deregulation of that industry (Kouzmin, 2007). Porter (1997) preaches that many of these intangible forces are measurable and that, in addition, there is a â€Å"chain of causality that runs from competitive environment to position to activities to employee skills and organization†. This causal argument is further pursued with Porter’s (1985) concepts of the value chain (see Figure 3). The value chain analysis is based on the simple linear idea that every activity performed in an organization will add some value to the final products or services produced. The final product is simply the aggregate of values contributed. The 3Cs model of Kenichi Ohmae Ohmae (1982) has much to discuss about competitive position, particularly the competitive positioning of successful Japanese companies. It is his view that the theories abounding in economic and economic policy circles concerning the importance of position have not been the drivers of Japanese success. He believes that strategy is not about beating the competition but about satisfying customer needs. Still further, Deming (1986) expounds a fundamental concept when exhorting his audience to consider the concept of competition. It is his argument that people must learn to cooperate with others and to compete with themselves. In the context of strategy, the ideas of Ohmae and Deming, regarding the importance of customers is most important. Concepts of competition and market share are of little use to the business principal and as a consequence there is very little that the philosophies of the Positioning School can add to their strategy knowledge base. As with Ohmae’s Japanese corporations, competitive advantage is driven by the ability to serve the needs of customers better. The 3Cs Model is a strategic look at the factors needed for success. The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a business strategy, three main players must be taken into account: 1. The Corporation 2. The Customer 3. The Competitors Only by integrating these three C’s (Corporation, Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. Ohmae refers to these key factors as the three C’s or strategic triangle. Hito-Kane-Mono A favorite phrase of Japanese business planners is hito-kane-mono, standing for people, money and things. They believe that streamlined corporate management is achieved when these three critical resources are in balance without surplus or waste. For example: Cash over and beyond what competent people can intelligently expend is wasted. Of the three critical resources, funds should be allocated last. The corporation should firstly allocate management talent, based on the available mono (things): plant, machinery, technology, process know-how and functional strength. Once these hito (people) have developed creative and imaginative ideas to capture the business’s upward potential, the kane (money) should be given to the specific ideas and programs generated by the individual managers. The Ansoff Growth Matrix Strategy Tool Igor Ansoff (1965) was the originator of the strategic management concept, and was responsible for establishing strategic planning as a management activity in its own right. His landmark book, Corporate Strategy (1965), was the first text to concentrate entirely on strategy, and although the ideas outlined are complex, it remains one of the classics of management literature. Ansoff was one of the earliest writers on strategy as a management discipline, and laid strong foundations for several later writers to build upon, including Michael Porter, Gary Hamel and C K Prahalad. He invented the modern approach to strategy and his work pulled together various ideas and disparate strands of thought, giving a new coherence and discipline to the concept he described as strategic planning. During the 1970s and 1980s, this concept shaped more ideas about management as other writers took up Ansoffs ideas, such as core competence or sticking to the knitting. A debate between Ansoff and Henry Mintzberg over their differing views of strategy was reflected in print over many years, particularly in the Harvard Business Review. Ansoff has often been criticized by Mintzberg, who disliked the idea of strategy being built from planning which is supported by analytical techniques. This criticism was based on the belief that Ansoffs reliance on planning suffered from three fallacies: that events can be predicted, that strategic thinking can be separated from operational management, and that hard data, analysis and techniques can produce novel strategies. Ansoff argued that within a companys activities there should be an element of core capability, an idea later adopted and expanded by Hamel and Prahalad. To establish a link between past and future corporate activities (the first time such an approach was undertaken) The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy. This Ansoff Matrix considers the existing and new markets as well as the existing and new products and services as a potential for business growth and development. Ansoff identified four key strategy components that interact with each other causing various effects on both new and existing products and markets. Figure four below is followed with a brief description of each component of the matrix. The Ansoff Growth Matrix Grid Source: (Proctor, 1997, p. 146). Market penetration Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives: Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling Secure dominance of growth markets Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors Increase usage by existing customers – for example by introducing loyalty schemes a market penetration marketing strategy is very much about â€Å"business as usual†. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. Market development Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including: New geographical markets; for example exporting the product to a new country New product dimensions or packaging: for example New distribution channels Different pricing policies to attract different customers or create new market segments Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. Diversification Diversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. Future Direction of Strategic Planning Strategic planning has come a long since its humble earlier works that were defined in the early 1960s. Many of these earlier concepts are still valid today or are reflected in the basic assumptions being used by leaders in our ever diverse organizations. Today, the goal of the organization is to achieve a competitive advantage by positioning itself in such a way that it has the ability to succeed all competition by enhancing performance. Competitive advantage is a concept that business organizations will continue to strive for. Michael Porter has been credited with introducing the five forces concept into business strategies. His theory has served as a back board for IO Theory (industrial Organization) theory. The traditional Bain/Mason paradigm of industrial organization offered strategic management a systematic model for assessing competition within an industry and was never really inducted into business policy by top decision makers. Many economists today have learned that introducing business policies into strategic planning and managing the economic impact of this union offers a positive influence on how organizations match up against each other on a microeconomic scale (Porter, 1981). From an IO economic perspective, mobility barriers or market positions are critical sources of competitive advantages that lead to superior performance. Organizational economics is more concerned with devising appropriate governance mechanisms or contracts to help reduce transaction or agency costs. The RBV (Resource Based View) of the firm has refocused the field of strategic management on all internal characteristics and views firms these characteristics as the source of competitive advantage. These characteristics have been identified as operational efficiencies, mergers, acquisitions, level of diversification, types of diversification, organizational structures, team management style, human resources management, and the manipulation of the political and social influences intruding upon the market that impacts organizations (Teece, 1982). The resource based view of the firm will be continue to be of significant importance to any organization because it provides leaders with specific tools needed to sustain a competitive position in a market place by providing management needed insights into examining the resource attributes and the their relationships towards other related variables in the market place as a means to gain the edge in the dynamic market (Barney, 2001). Conclusion Strategic planning has developed into a vital practice that must be approached with careful consideration to allow for through investigation into how an organization is structured. From both an internal and external perspective, managers need to recognize the need to evaluate value, mission, core competencies, history, and past, current, and future situations in order to gain and sustain competitive advantage in a market place. The need to identify strengths, weaknesses, opportunities, and threats, has been addressed as a main basic goal that must be used by leaders to empower the organization. Various models and theorists have been identified and explained as a means to gain a better understanding on how to define strategic planning. Since the 1960s, there have been many different points of view concerning the strategic planning concept. Various schools of thought have been developed by infamous theorists who have engraved a foot print into the development of modern corporate practices. Many of these concepts have paved the way for common approaches utilized by corporations as building blocks for surviving in such dynamic and competitive environments. Many of the strategies that are in use today are variations from the past and will continue to be adopted and manipulated to fit the needs of leaders seeking to find solutions to new and emerging issues that are relevant and applicable to the real business needs of organizations. Leaders today will need to continue finding new ways to plan for the future and adjust to the pace of environmental change with confidence, knowledge, skill, and ability. References Ansoff, H. I. (1965). An Analytic Approach to Business Policy for Growth and Expansion. McGraw-Hill, New York, NY. Barney, J. B. (1991). â€Å"Firm resources and sustained competitive advantage†, Journal of Management, Vol. 17 No. 1, pp. 99-120. Deming, W. E. (1986). Quality, Productivity and Competitive Position. MIT Press, Cambridge, MA. Drucker, P. (1970), Technology Management and Society, Harper Collins Books, NY. Fuller, M. (1996), â€Å"Strategic planning in an era of total competition†, Planning Review, Vol. 24 No. 3, pp. 22-7. Ginter, M. (1985). Planners’ Perceptions of the Strategic Management Process Journal of Management Studies, Vol. 22 No. 6, pp. 581-96. Hammer, M. and Champy, J. (1993). Re-engineering the Corporation: A Manifesto for a Business Revolution, Harper, New York, NY. Hamel, G. and Prahalad, K. (1995), â€Å"Thinking differently†, Business Quarterly, Vol. 59 No. 4, pp. 22-35. Hart, L. (1965). The Memoirs of Captain Hill. Volume 1 and II. Gassell, London, 1965. Hill, L. and Jones, R. (1998), Strategic Management Theory: An Integrated Approach, Houghton Mifflin, Boston, MA. Hubbard, G. and Taylor, G. (1996), Practical Australian Strategy, Prentice-Hall, Sydney. Kouzmin, A. (2007). â€Å"Economic rationalism, risk and institutional vulnerability†, Risk Decision and Policy, Vol. 1 No. 2, pp. 229-57. Mintzberg, H. (1987). The Strategy Concept 1: Five Ps for strategy. California Management Review, Vol. 30, pp. 11-24. Mintzberg, H. (1990). Strategy Formation: Schools of Thought. Perspectives on Strategic Management, J. W. Fredrickson. Frand Rapids, Philadelphia, Harper Business: 105-236. Mintzberg, H. and Lampel, J. 1998), Strategy Safari: A Guided Tour through the Wilds of Strategic Management, Prentice-Hall, New York, NY. Mintzberg, H. (1998). Five Ps For Strategy: The Strategy Process. Revised European Ed. Prentice Hall, New Jersey. Ohmae, K. (1982). The Mind of the Strategist: The Art of Japanese Business, McGraw-Hill, New York, NY. Porter, M. E. (1979), â€Å"How competitive forces shape strategy†, Harvard Business Review, March-April, pp. 137-45. Porter, M. E. (1980), Competitive Strategy, Techniques for Analyzing Industries and Competitors, Free Press, New York, NY. Porter, M. E. (1985), Competitive Advantage, Creating and Sustaining Superior Performance, Free Press, New York, NY. Porter, M. E. (1991), â€Å"Toward a dynamic theory of strategy†, Strategic Management Journal, Vol. 12, Winter, pp. 95-117. Porter, M. E. (1997), â€Å"Response to letters to the editor†, Harvard Business Review, March-April, pp. 162-3. Proctor, T. (1997). A Conceptual Synergy Model of Strategy Formulation for Manufactoring. Quarterly Journal of Operations and Production Management. Vol. 24, ISS: 9. pp. 140-149. Quinn, B. (1980). Strategies for Change: Logical Incrementalism, Home, IL: Irwin. Sokol, R. (1992). Simplifying Strategic Planning. Management Decision. Vol. 30 No7. Pp. 11- 17. Teece, J. (1982). Towards an Economic Theory of the Multi-Product Firm. Journal of Economic Behavior and Organization 3, pp. 39-63. Viljoen, J. (1994), Strategic Management – Planning and Implementing Successful Corporate Strategies, Longman, Melbourne. Viljoen, J. and Dann, S. (2000), Strategic Management – Planning and Implementing Successful Corporate Strategies, Longman, Melbourne.

International Macro Post Essay Example | Topics and Well Written Essays - 500 words

International Macro Post - Essay Example It highlights how the aftermath has made GDP growth rates tumbled while the inflows of foreign unswerving investments have dried out. The article also explores the failures of the government for decades during the dictatorial regime. The country has to establish conventional macroeconomics to guide in managing economic growth and economic development instead focusing on GDP and neglecting other economic concerns such as inflation, unemployment and externalities. In their final submission, the article highlights possibility of hope for the’ New country’. Despite the challenges that the country has gone through in the last three decades leading to massive capital flight. The article underscores the need to review the economy while at the same time impose sound economic policies i.e. monetary and fiscal policies that would reclaim the country’s lost balance of payment (BOP) and country’s currency reserves. They retaliate the fact that Egypt as a country still can create a favorable environment for economic growth and entrepreneurial change. One key issue that the article explores according to my understanding is the link between civil war or the revolutions and their impact on macroeconomic policies and objectives such as economic growth of the country. It is essential to analyze the impact through domestic investment. The capital stock of any given country epitomize its accumulated stock of machineries, firms that are there in the country at any point in time, and this are what adds to productive power in the economy. If capital stock rises so will economic growth at its all-time high. According to neo-classical economists capital stock, originates from investment and depreciation. Egyptian revolution affected capital stock in two ways. First it reduced the existing stock of capital since during the period of revolution roads, ports and factories were destroyed. Secondly, the level of capital stock is affected by investment that must

Social Web Research Paper Example | Topics and Well Written Essays - 2250 words - 1

Social Web - Research Paper Example †. A question comes to mind, what is social networking meant for? Its purpose is to enable people for creating a virtual social network to exchange ideas and thoughts with class mates, old friends, lost friends, relatives, and new friends. Social networking sites have advantages as well as disadvantages later to be discussed. The factors impacting on the society are interrelated to each other. The severity of the impact of these sites may vary from severity level 1 to severity level 3. Social networking sites facilitate people to create a public or private profile to share it with a group of people within an isolated system. Likewise, these ‘web based’ services offer opportunities to create a new relation. The first social network site was launched in 1997 that was named as SixDegrees.com. Since then, these sites offered innovation in relationship performances, impression management, privacy management, online and offline status of friends. However, study shows tha t there is no research on cultural disparity (VitkauskaitÄâ€", 2011). Social Networking Sites Statistics Over 700 billion minutes are spent by each user on ‘Facebook’ per month. More than 500 million active users are registered on face book. 50% of massive 500 million contributes to the log of active users on to ‘Facebook’ in every single day.... ite ‘www.facebook.com’ statistics also includes the activity of users is â€Å"above 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each month. The Global Reach is in more than 70 translations available on the site About 70% of Facebook users are outside the United States and Over 300,000 users helped translate the site through the translations application. Moreover, Fig 1.1, 1.2 and 1.3 illustrated below, demonstrate the participation of genders, privacy and beliefs and behavioral tracking on ‘Facebook’. Fig 1.1(Retreived from (Hoy & Milne, 2010) Fig 1.2(Retreived from (Hoy & Milne, 2010) Fig 1.3(Retreived from (Hoy & Milne, 2010) These figures are incomparable to other social networking sites such as twitter has 175 million registered users and 95 million tweets are written each day (Roberts, 2011). Positive Impact of Social Networking Sites (SNS) Social networking sites (SNS) facilitate users to creat e new relationships. Continuous communication online strengthens relationships and gives opportunities for creative expressions in a collaborative way. The social networking sites provide free photo storage, blogging, games, invitations for participating friends and various services. The social networking sites provide common interest between people and proffer revelation to innovative ideas publishing around the globe and provide freedom of expression. Those people who have stammering problem while speaking can express their emotions and feeling to share with others in full confidence. Social networking sites also contributed people to make crucial decisions in their life. 60 million Americans are facilitated by the Internet for making one of the most crucial life decisions ("The Strength of Internet Ties,

Managerial Finance and Financial Markets Essay Example | Topics and Well Written Essays - 1500 words - 1

Managerial Finance and Financial Markets - Essay Example commercial property can be used as an alternative investment during periods of high inflation, which is possible because of its low correlations with bonds and stocks. More so, the inclusion of commercial property in the portfolio will offer regular streams of income, for example in form of rent, which can be adjusted periodically thus shielding the investor from the effect of high inflation. The force behind commercial estate returns, from macroeconomics viewpoint, is different from that of equity and bonds. In this view, commercial property is an ideal source of portfolio diversification. Furthermore, the commercial property is in itself diversified, hence its performance is very unique. Commercial property can be used to diversify unsystematic risk, but not systematic risk. The reason why it is difficult to diversify systematic risk is because it influences a large number of assets (Case, 2014). The diversification, in this case, depends on risk-adjusted returns, the investor’s horizon and correlations (as shown in Table 1). Some of the types of diversification that can be generated from commercial property include that between private and public real estate, between bonds and equity, by property type, by investment strategy, within domestic market (geographically), and between domestic and foreign market. International diversification, whereby investors venture into international real estates, is a potential means of reducing risk as it offers very low return correlations. For example, by investing internationally, investors achieve low performance fluctuations, in a manner that cannot be achieved locally (Hudson-Wilson, Fabozzi & Gordon, 2003). Commercial property, relative to other asset classes, has been historically known to offer higher returns. However, in the long term, although commercial property is expected to generate a lower return compared to public equities, it is expected to perform better than bonds. Even though this relationship has

Subjective Well-being Concept: Strengths and Weaknesses

Subjective Well-being Concept: Strengths and Weaknesses Subjective wellbeing: A critical discussion of its strengths and weaknesses Subjective Wellbeing is a new science and has to do with how people see their lives in terms of personal satisfaction (Diener, Suh, and Oishi, 2005, pg. 1). It can be affected by moods, illness, positive and negative emotions, economic status, and many other factors. The concept of Subjective Wellbeing has been around for a long time; however it has only been in recent years that researchers have studied and tested it. All those involved admit that it is not the final word and more research needs to be conducted (Frank, 2005, pgs. 69-79). Subjective Wellbeing has strengths, but there are also limitations. Subjective Wellbeing studies are important and valuable in that they provide us with a deeper understanding of human nature and they give us information that will assist us in improving the quality of life for others. Much progress has been made in researching the area of subjective wellbeing, but most of the current literature in this field indicates there are limitations. One of the strengths of Subjective Wellbeing is its usefulness in improving the quality of life. Emmons and McCullough (2003) conducted a study on the effects of gratitude on wellbeing. Participants were randomly assigned conditions. They were asked to meditate once a week or once a day for 2-3 weeks on what in their life they can be grateful for. They claim the results of this study were significant in their positive impact on wellbeing. They had to admit that they did not know how long the results would last (pg. 386). Subjective Wellbeing studies are usually administered as questionnaires and can give us a good indication as to quality of life for individuals providing the term â€Å"wellbeing† is clearly defined (Muldoon, Barger, Flory, and Manuck, 2003, pp. 542-545). Any abstract study of this nature must have clear definitions of key terms such as â€Å"wellbeing†, yet not necessarily a highly defined term as most people instinctively know what makes their lives better or happy. On the other hand, there are some scientists that are critical of the notion that most people know instinctively what gives them a sense of wellbeing. These critics claim that wellbeing can mean different things to different people. There are critics who do not believe that people necessarily have the ability to make an accurate assessment of their own wellbeing. The argument has been presented that people can become quite adaptable to less than favorable circumstances and conditions and will answer the qu estionnaire in a manner that is not completely honest. They may have become used to lowered living conditions and therefore would regard themselves inaccurately as having greater satisfaction than what they would normally report. Critics of this subjective study also have a problem with the lack of objective reference points. They believe it makes it difficult to compare people’s assessments of their own wellbeing (Van Bruggen, 2001, pg. 10-12). When reviewing the answers to the questionnaires it would appear that there is a common thread in the way people respond to them. This allows us to believe many of the same things give people a sense of wellbeing, yet when the answers are examined more closely idiosyncrasies are revealed. When investigated in depth it appears there are differences in what determines wellbeing for each individual. It would be important to ask the right questions. This would require an understanding of what constitutes wellbeing. The question arises as to what human goals or needs are the building blocks for Subjective Wellbeing. If we want to understand what makes for wellbeing we must determine universal goals and needs. These goals and needs are supposed to represent the components of Subjective Wellbeing. If these goals and needs are fulfilled, then it is believed that the individual will score high on subjective wellbeing. If this is true then those needs and goals must be identified. It is not on ly the achievement of those goals and needs that contributes to wellbeing, but also the way they are achieved. Within the context of goals and needs are many questions, such as if there is greater satisfaction through them being met through personal achievement or luck (Van Bruggen, 2001, pg. 10-12). One question researchers have regarding these Subjective Wellbeing studies is if a person’s sense of wellbeing is consistent and stable. Critics of Subjective Wellbeing question the study participants’ truthfulness and reliability. It has been determined that the respondents’ mood when taking the questionnaire can bring about an inaccurate outcome (Muldoon, Barger, Flory, and Manuck, 2003, pgs. 542-545). In a study conducted to determine the affect of mood on Subjective Wellbeing, Robinson (2000) states: Although laboratory studies can highlight the effects of mood  on processing and judgment, they cannot tell us about how  people evaluate their daily lives. By measuring naturally occurring  life events, mood states, and cognitive WB, the present investigation  sought to fill this gap. In particular, the primary purpose  of these studies was to understand the relation between daily  experiences and cognitive WB. The results of cross-sectional  and longitudinal designs reveal that the relation between life  events and cognitive WB is entirely mediated by mood states. Mood states appear to serve both reactive and prospective  functions, and are therefore the key to cognitive WB change (page 10). Another factor to be considered in Subjective Wellbeing studies is that of personality traits. Certain personality traits can influence the outcome of the questionnaire skewing the results. Chan, Ungvari, Shek, and Leung (2003) conducted a study to determine the quality of life of Chinese patients with schizophrenia. Their study was longitudinally based and they report this was the strength of their research. They claim this longitudinal design provided for greater accuracy because it regulated â€Å"influence of personal characteristics on dependent variables† (page 3). One of the limitations of their study is that the sample size was too small and they lacked a matched control group (page 3). In considering personality traits affecting the outcome of Subjective Wellbeing studies the question of IQ has been explored. Researchers led by Professor Ian Deary at the Edinburgh University in Scotland conducted a study where they recruited 500 volunteers who agreed to have their IQ’s tested. The participants had their IQ’s tested at the age of 11 years old and then at the age of 80 years old. The results of this test were that there was no correlation between their IQ’s and overall life satisfaction. What the researchers did find was that health played a factor in life satisfaction but not the intelligence level of the individual. Oftentimes a higher IQ causes the individual to place more demands and higher expectations on themselves. This can set the individual up for disappointment and therefore lower Subjective Wellbeing scores (Deary, et. al. 2005, pgs. 141-142.) An interesting model was created that did not address life satisfaction directly but nevertheless had an impact on Subjective Wellbeing. This model was developed to determine emotional-social intelligence (ESI) and was called the Bar-On model. This model measured behavior and performance and it proved to be consistent over time and highly accurate across cultures. Although the Bar-On model was not used specifically for measuring Subjective Wellbeing its results were very important and gave scientists information that can be applied in this area. What this model revealed were the areas in an individual that could use improvement in order to enhance overall life satisfaction. This model’s strength is its usefulness in many different areas and that it is highly teachable. It could be very useful in schools, for example. As with other models, longitudinal studies are required to obtain greater understanding and also acquire more accurate outcomes (Bar-On, R, 2005, pg. 20). Frank (2005) states the methods used to measure Subjective Wellbeing oftentimes do a fairly good job of monitoring the experiences we have that we are consciously aware of but there are limitations. One of the limitations is that there may be other things that are more important to us than those experiences we are cognitively aware of. He gives the following example: Suppose we lived in parallel universes and in one of those universes you earned $100,000 a year and in the other one you earned $200,000 a year. Suppose the individual would feel equally happy in either universe. Then consider that the people who lived in the wealthier universe would be inclined to spend more money on keeping a cleaner environment resulting in a longer and happier life for everyone. Frank states it is obvious that people would be better off living in the richer universe. His point is that there may be other things that are more important to us that we are not consciously aware of at this time; therefore the results of Subjective Wellbeing measures may not be accurate (pgs. 69-79). As we can see there are limitations to Subjective Wellbeing as a measure for life satisfaction, yet it has enough strength that it is still an important and useful emerging science. References Bar-On, R. (2005). The Bar-On model of emotional-social intelligence (ESI).  Issues in Emotional Intelligence, (1)4, pp. 1-28. In P. Fernà ¡ndez-Berrocal and  N. Extremera (Guest Editors), Special Issue on Emotional Intelligence.  Psicothema, 17. Chan, G.W.L.; Ungvari G.S.;, Shek, D.T.L.; Leung, J.P. (2003).  Impact of deinstitutionalisation on the quality of life of Chinese patients with  schizophrenia: A longitudinal pilot study. Hong Kong J Psychiatry, 13(4), pp. 2-5. Deary, A.; Gow, A.; Whiteman, M.; Pattie, M.; Whalley, L.; and Starr, J. (Jul 2005).  Lifetime intellectual function and satisfaction with life in old age:  longitudinal cohort study. BMJ. 331, pp. 141–142. Diener, E.; Suh, E.; and Oishi, S. Recent Findings on Subjective Well-Being (2005,  pg. 1). Retrieved August 1, 2005 from  http://www.psych.uiuc.edu/~ediener/hottopic/paper1.html Emmons, R.A. and McCullough, M.E. (2003). Counting blessings versus burdens:  An experimental investigation of gratitude and subjective wellbeing in daily life.  Journal of Personality and Social Psychology, Vol. 84, No. 2, pp. 377-389. Frank, R.H. (Spring, 2004). How not to buy happiness. Daedalus. Vol. 133, Issue 2,  pp. 69-79. Muldoon, M.F.; Barger, S.D.; Flory, J.D.; Manuck, S.B. (14 Feb. 1998). What are  quality of life measurements measuring? BMJ, 316, pp. 542-545. Robinson, M.D. (2000). The reactive and prospective functions of mood:  Its role in linking daily experiences and cognitive well-being. Cognition and Emotion,  14(2), pp. 145-176. Van Bruggen, A.C. (2001). Individual production of social well-being: an  exploratory study. pp. 1-16. Retrieved August 1, 2005 from  http://dissertations.ub.rug.nl

A Character Sketch Of Joe Gargery :: essays research papers

A Character Sketch of Joe Gargery Joe Gargery might not be the smartest or wisest of Dickens' characters, but he is definitely one of the kindest and most humane. Although Miss Havisham gets much attention for being different, I think that you will soon be convinced that Joe, however simple he may be, is definitely a unique character. It is my opinion that Dickens made an effort to raise the readers respect for Joe by the sharp contrast between him and his wife. Three qualities belonging to Joe are his affectionate nature, pride, and his perseverance. When Joe asks Mrs. Gargery to marry him, he especially insists that she bring her young orphaned brother, Pip, to live with them. Joe never reminds Pip of this fact, except when telling Pip how much he thinks of him. Mrs. Gargery, on the other hand, is constantly reminding Pip to be thankful of her "raising him by hand". At one point, Pip decides he will teach Joe to read. Although Joe has no real aspiration for this, he humors Pip and lets the boy instruct him. As mentioned before, Mrs. Gargery is a very cruel person. One would think living with her would drive even a saint to kill. Even so, Joe never says a harsh word about his wife and treats her with the utmost respect. Pip's decision to go to London has a greater impact than most readers think. Not only was Joe losing a set of hands around the forge, but he was also saying farewell to a boy who must have been like a son to him. Joe knew that once Pip left they would never have the same relationship. It was clear to Joe that this was Pip's dream, so not once did he question the decision Pip had made. When Pip is asked to come to Miss Havisham's and "play", Mrs. Gargery and Pumblechook are driven crazy wondering what gift she will give Pip for his service. Joe, on the other hand, pays no attention to their high hopes. His pride is also evident when he turns down the money Jaggers offers him for Pip's indentures. It is not that Joe couldn't use the money, after all he is losing Pip's help in the forge and his wife is bedridden. Joe proves to be a man of great perseverance. He manages to run a smithy, be married to a wife with a temper that makes a rabid dog seem tame, and

Johnson & Johnson Global Business Environment

Johnson & Johnson: Successfully Strategizing for the Changing Global Business Environment I. Introduction Johnson & Johnson is the world's largest healthcare company. Founded in the United States in 1886, the company has been profitable for 75 straight years and currently operates 250 subsidiary companies in 57 countries. Its products fall into three segments: pharmaceuticals, with 39% of total sales; medical devices and diagnostics, with 36%; and consumer products, with 25%. Additionally, the company employs 119,200 people worldwide and sells its products in 175 countries.A truly global corporation, Johnson & Johnson has securely positioned itself to overcome the challenges its ever-changing business environment poses, as well as take advantage of the opportunities presented. With a focus primarily on Johnson & Johnson’s pharmaceutical segment, this paper seeks to explore the complex multinational environment within which the company operates as well as the opportunities and threats that the environment poses. Next, the paper will analyze Johnson & Johnson's current positioning, describing its value-chain and competitive positioning.The paper will close by evaluating how Johnson & Johnson both can seize these opportunities to realize the goals of the company. II. Analyzing the Environment In industries as competitive as pharmaceutical, medical devices and consumer goods, analyzing the environment is vital for being able to make sound strategic decisions. Since Johnson & Johnson strives to anticipate the external factors that affect its international business environment, as well as adapt to those changes, it is important that it understands the environment in which it is operating.The two sets of external forces that face the company are competitive and contextual. A. Competitive Environments – Five Forces Model Michael Porter’s five forces model provides a way of analyzing Johnson & Johnson’s competitive environment. Due to a lack of available information about the bargaining power of suppliers as it applies to Johnson & Johnson, this paper will address the four other forces: the threat of new entrants, the threat of substitutes, the bargaining power of customers, and the rivalry among industry competitors. 1. The Threat of New Entrants – High Barriers to EntryThe threat of new entrants is not of particular concern to Johnson & Johnson. Barriers to entry, especially in the industries of pharmaceuticals and medical devices, are extremely high if not unsurpassable. The world’s top pharmaceutical companies have extensive manufacturing capabilities, distribution systems, and economies of scale that have been built up over decades and would be virtually impossible for a new entrant to replicate. These top firms also have patents that protect their current products, as well as established research pipelines that ensure the continual development of new products.Also, they have strong brand names and la rge marketing budgets with which to defend them. Finally, the exceptionally high capital requirements for founding a pharmaceutical company and the sharp retaliation that new entrants could expect from the established competitors render the threat of new entrants very low. The medical device industry has similarly high barriers to entry. While entering the consumer goods market is easier, relatively, the vast number of competitors makes this industry very competitive, thus a strong brand name is vital for standing out.As the world’s most respected company according to Barron Magazine, new entrants to the consumer goods market do not pose a threat to Johnson & Johnson. 2. The Threat of Substitutes – The Rise of Generics The threat of substitutes is much more problematic than that of new entrants, especially in the pharmaceutical segment. The Food and Drug Administration (FDA) requires that generic drugs be bioequivalent to their brand name counterparts, making them seri ous substitutes. Once a patent expires, generic manufacturers are quick to reverse-engineer the formerly proprietary drugs and sell generic versions at a fraction of the cost.Virtually all the top pharmaceutical companies, Johnson & Johnson included, face an influx of upcoming patent expirations. The impending loss of sales when generic versions of the drugs inevitably become available is a serious threat to the profitability of many players in the industry. For example, Risperdal, a drug for schizophrenia made by a subsidiary of Johnson & Johnson’s called Janssen-Cilag, was a significant source of profits, with sales that totaled $3. 5 billion in 2005 and surged 21% percent in the first quarter of 2006, to $1. 2 billion.However, when the patent for Risperdal expired in December of 2007 and became available in generic form in October of 2008, the company’s revenue from pharmaceutical sales stagnated. In fact, in July of 2007, Johnson & Johnson announced plans to elimin ate up to 4,800 jobs, citing patent expirations as the main motivation to trim the workforce and thus save money. If the company does not prepare for the difficult transition between enjoying market exclusivity and losing that security as those patents expire, it will face more negative consequences. 3. The Bargaining Power of Buyers – Influence of GenericsIn the pharmaceutical industry, buyers include patients, medical doctors who prescribe drugs, pharmacists, hospital boards, insurance companies, and other health authorities. The bargaining power of patients goes hand in hand with the threat of substitutes. When drugs are patent-protected, pharmaceutical companies enjoy a monopoly where they can set prices to include high profit margins. Since there are few to no substitutes for their products during this time, customers have little choice but to pay these prices, especially if their lives depend on the drugs.However, once cheaper, generic versions of the drugs become avail able, buyers gain more power. Patients’ switching costs, an important element in determining the bargaining power of buyers, are fairly low, and price-sensitive buyers will likely switch to generic versions once available. Johnson & Johnson’s main tool in combating this problem is its strong brand name. Many customers have more trust in brand name products and are willing to pay extra for this perceived security. The other groups within buyers of pharmaceutical products, while fragmented, have more power than patients.Within the American healthcare system, insurance companies and health maintenance companies (HMOs) have considerable bargaining power, as they decide which drugs to endorse and provide. Since they have an interest in lowering costs, they exert a strong downward pressure on drug prices, partly due to the threat of the availability of generics. European governments’ national healthcare systems have a similarly high level of power, if not higher due t o strict price controls. Thus, pharmaceutical companies have a need to establish successful relationships with these groups and market towards them heavily. 4.The Degree of Rivalry – Fierce and Changing Competition Competition in the pharmaceutical industry is intense and growing in intensity. While the numerous competitors remain fairly fragmented, mergers and acquisitions have increased rivalry, as the top firms’ areas of expertise began to overlap. Rivalry is especially intense in saturated markets, such as the pain reliever segment, in which Johnson & Johnson competes with its products Tylenol and Motrin. In growing markets, innovation is a key driver of competition since pharmaceutical companies depend on â€Å"blockbuster† drugs for a large proportion of their revenue.With only one out of every 10,000 discovered drugs approved to be sold, stakes are high to find the cash cow drugs that recuperate the increasingly high costs of development. Since â€Å"me too† drugs are not as profitable, innovation drives the race to be first-to-market. While the main competitors in the pharmaceutical industry are concentrated in the United States, Europe, and Japan, an increasing number of players – especially generic drug manufacturers – are appearing in developing countries, such as China and India. These companies are driving the shift in the industry toward becoming more commoditized.Also, numerous biotech upstarts, which are smaller, more agile, and have lower overhead costs than their conglomerate competitors, are growing in power and taking market share. As the dynamics of the industry change, the established companies will find themselves facing stiff competition from all sides. B. Contextual Environment – PEST Analysis A PEST (Political, Economic, Social, and Technological) analysis is a useful tool for understanding the larger environment within which the company operates. Companies can use this tool to identify a multitude of important aspects of their environments that may impact their businesses. . Political Environment – Changing Politics and Policies First, the politics on local, regional, national, or international scales can exert strong forces on businesses. Since Johnson & Johnson operates worldwide, it must keep track of the political developments that may affect its business. For example, in the Czech Republic, health care is the subject of a major political debate. Changes in the healthcare system may affect to whom Johnson & Johnson needs to market, and with whom it needs to negotiate if the company wants its products covered by the Czech healthcare system.Also, Johnson & Johnson should be aware that the Czech Republic has a weak Parliament that will change in 2010’s elections. The company needs to anticipate which policies may shift under the new government. Finally, Johnson & Johnson should be aware that the Czech Republic will serve as president of the Council of the European Union for the first six months of 2009. This is the best time for the Johnson & Johnson branch located in the Czech Republic to lobby for any policy changes regarding the company’s interests and the business environment. 2.Economic Environment – The Crisis and the Euro The economic climate is also important for Johnson & Johnson to analyze in order to predict when its business may face challenges, as well as when it can seize an opportunity for growth. Operating in the European Union and larger European community means that Johnson & Johnson has felt the effects of the current economic crisis. Aware of the crisis, the company has been able to plan for its impact, and fortunately, the effects on Johnson & Johnson have not been severe, as medical products remain necessities even in periods of economic downturn.In respect to the Johnson & Johnson branch in the Czech Republic, the economic environment is one that quickly transitioned from a communist, plan ned economy to the free market. Though the Czech Republic has embraced free market principles since the fall of the Soviet Union, it is important that Johnson & Johnson recognize that this change was relatively recent, and certain aspects of working in the Czech Republic may still be affected by this history. Finally, discussions surrounding the use of the euro and the benefits and disadvantages of a common currency are debates that Johnson & Johnson should be aware of in this time period.While Slovakia adopted the euro in January 2009, the Czech Republic has kept its own currency. A switch to the euro in the Czech Republic could have a wide range of effects, some positive and some negative, and Johnson & Johnson should understand the implications for its business if that change occurs in the Czech Republic. For example, adopting the euro would make transactions with other countries more convenient, and Johnson & Johnson should be prepared for a possible increase in transactions or the speed in which transactions take place in order to take advantage of the opportunities this change could provide.It should also be ready for the numerous practical difficulties with tasks such as accounting that may occur with a change in currency. Keeping these economic scenarios in mind is the kind of forward-thinking that is crucial to Johnson & Johnson's success. 3. Social Environment – Aging Population and Public Health Problems There are two major social changes on the horizon that will both affect Johnson & Johnson as well as provide tremendous opportunities. The first is the aging population.The gigantic baby boomer generation, consisting of those born between 1946 and 1964, has had a huge social and economic impact on the world since its birth. This trend will continue as the generation is beginning to enter old age. The influx of senior citizens will create huge demands throughout all realms of medical care. Johnson & Johnson can expect to see increased sales ac ross all three of its segments – pharmaceuticals, medical devices and diagnostics, and consumer goods – in the coming decades, and must plan production accordingly to be able to meet the needs of this huge generation as they enter their most medically-dependent years.Additionally, in order to cater to the aging population, Johnson & Johnson is pioneering developments in preventative medicine as well as less invasive surgery techniques. Another major social change affecting Johnson & Johnson is the phenomenon of surging rates of various health problems, especially in developed societies but spreading worldwide, from obesity and diabetes to cancer and mental disorders. Though highly problematic for society, companies in medicine-related industries such as Johnson & Johnson are finding themselves with an increasing number of people to treat and cure.As a company that invests heavily in research and development, Johnson & Johnson has the opportunity to lead the way in find ing ways to address these serious public health issues. 4. Technological Environment – Promising New Fields As many pharmaceutical drug markets become saturated and the blockbuster drug strategy becomes obsolete due to the major changes occurring in the industry, innovation and breakthrough medical technologies are essential for finding blue oceans in which to compete.Predictive medicine, which entails predicting diseases based on genetics and preventing them, and personalized medicine, which involves managing a patient’s health based on his or her individual characteristics as opposed to following the more traditional â€Å"standards of care† model, are growing fields into which Johnson & Johnson can expand. The company’s strong emphasis on research and development and its leadership in the medical devices and diagnostics segment put it in an excellent position to become a frontrunner in making new discoveries in these promising new technological fields. C. Determining Threats and Opportunities 1.Threats – The Uneducated Consumer and Mergers and Acquisitions One of the biggest threats facing a company like Johnson & Johnson is the uneducated consumer. Especially within the consumer products and pharmaceuticals markets, with the increasing availability and lower cost of generic products, a key component of continued competitiveness is the discerning consumer who has preferences when it comes to treatment options. Johnson & Johnson must continually work hard to make sure that people are aware of its products and the quality that it ensures through effective branding and promotional practices, as well as consumer education.Patent expirations are also a constant concern for Johnson & Johnson as proprietary information is an integral part of sustained revenue streams. Mergers and acquisitions (M) present both potential opportunities and threats for Johnson & Johnson. The company has pursued M that have served to expand the compan y’s resources and help penetrate new and diverse markets. For example, Johnson & Johnson recently acquired Mentor Corporation in order to expand its operations in to the aesthetic and reconstructive medicine market.Also, an important new medical product called the Fibrin Pad was developed with the cooperation of three Johnson & Johnson-owned subsidiaries. These are just a couple examples of how Johnson & Johnson is able to both grow and innovate through M. On the other hand, M between other companies in the healthcare industry have the potential to upset Johnson & Johnson’s value chain and competitive advantages. Johnson & Johnson must pay close attention to the actions of rival companies in order to maintain its market-leader positions and barriers to entry against competitors. 2.Opportunities – Research, Synergies, Emerging Markets, and the Aging Population Johnson & Johnson’s greatest opportunity is found in its heavy investment in research and develop ment. This is especially important for its medical devices and diagnostics and pharmaceutical divisions. It is necessary for the company to be on the leading technological edge when it comes to medical devices to ensure that it can offer the most accurate and up-to-date machines available. As for the pharmaceutical sector, patent expiration and generic drugs demand constant innovation and addition to Johnson & Johnson’s pipeline of products for sustained success.Strong pipelines in its pharmaceutical and medical devices sectors are a major source of confidence in the company’s long-term success. With eight new late-stage compounds in the pharmaceutical sector and the introduction of several new products to new markets in the medical devices sector, Johnson & Johnson seems to be advancing its pipeline quite progressively. It also strives to be a consistently innovative company, and around 40% of its current products have been developed within the last 3-4 years. In 2008 , Johnson & Johnson spent $7. billion on research and development. The reinvestment of 11% of sales in to R, versus the industry average of 3%, demonstrates a source of competitive advantage for the company. Synergies between product branches are yet another source of opportunities for Johnson & Johnson. Through the well-coordinated efforts of its pharmaceutical and consumer products divisions, Johnson & Johnson was able to make the formerly prescribed drug Zyrtec available as an over-the-counter drug, which came to be the company’s most successful product launch in 2008.This is yet another example of how the company is able to pool its resources in order to find ways to fulfill both the needs of both its customers and stakeholders. Other opportunities for Johnson & Johnson are present in emerging markets such as Brazil, Russia, India and China. Its products are currently available to only 25% of the world’s population. However, through its decentralized management app roach and the adjustment of its products and strategies to match local needs and preferences, Johnson & Johnson is reaching an ever-increasing consumer base.One method Johnson & Johnson has been able to reach a broader consumer base through is the de-featuring of products, such simplified blood-glucose meters, which allows for access to lower-income customers and dampens the parasitic effect of cheap substitutes. One final opportunity exists in the demographic trend towards an ageing population. People are living longer, and because of this, new types of medical needs are arising all the time. Many types of medical treatments and surgeries are being developed and becoming more commonplace, such as hip replacements and plastic surgery.Patients want to be able to fix their ailments and expect a quick and uncomplicated recovery afterwards. It is up to Johnson & Johnson to develop and provide the best possible equipment and supplies to do this and fulfill the company promise of customer success. III. Establishing European and Global Opportunities A. Expansion into New Markets – Developing Countries Despite the many challenges of working in both the European and global business environments, it is clear that these environments also allow Johnson & Johnson to strengthen and continue to grow its business.With income and living standards on the rise in many European countries such as Turkey and the Czech Republic, where sales have already increased, and across the globe in developing countries like China and India, Johnson & Johnson has many opportunities to sell its products in new markets or expand more in markets it has previously penetrated. In order to take advantage of the broadening market field, Johnson & Johnson has begun to offer products that will appeal to people in less affluent nations. Its objective is clear: make products that are affordable for most of the world.To do this, Johnson & Johnson has created de-featured versions of products that can be sold at a lower price, thus becoming accessible to more patients. B. Domestic Market Defense – Competition and Mistakes While Johnson & Johnson expands to serve more customers in new markets, it must also maintain its secure position domestically. Though the consumer segment only accounts for only 25% of its total sales, the company realizes that keeping up its reputation and remaining a household name will help it as it moves into foreign markets. To put it simply, Johnson & Johnson must remain synonymous with quality, safe products.Next, Johnson & Johnson must be ready to compete with an even greater number of competitors, such as Pfizer, Merck, Novartis and Eli Lilly. Despite being the world's largest healthcare company, it still faces competition and has run into problems when it has attained the market lead, grown too confident in its product, and then lost the lead. Because Johnson & Johnson has twice lost its lead with one particular product, a heart stent, it now seems aware of this problem in its business strategy and therefore will be prepared for similar situations as it continue to penetrate new markets.IV. Analyzing Johnson & Johnson’s Current Position A. Value Chain Analysis – Synergies, Cost Reductions, and Relationships A value chain analysis of Johnson & Johnson reveals several key sources of value generation. Johnson & Johnson consists of 250 companies that operate in 57 countries worldwide. The widespread nature of its operations and decentralized management practices allow for a high degree of local autonomy and adaptation. This makes Johnson & Johnson very efficient in discovering and reacting to changing consumer demands across the globe.Also, the convergence of knowledge and information from branches across the globe gives the corporation a great advantage in the development of new products and technologies. Flexibility and detailed, location-specific knowledge coupled with heavy investments in technology, most n otably IT, are the main production-based value drivers of the corporation. They allow for timely, adaptive responses to changing needs and the ability to achieve first leader power in emerging markets. Johnson & Johnson is making progress in finding ways to reduce costs.Standardization initiatives in its pharmaceutical sector enabled the company to streamline operations and cut costs by $1. 6 billion in 2008. Cost savings are also created by means of acquisitions. For example, Johnson & Johnson’s acquisition of Pfizer Consumer Healthcare is expected to generate up to $600 billion in â€Å"cost synergies† by unifying the efforts of the two companies. Johnson & Johnson also emphasizes the importance of relationships with both its consumers and employees in its company credo.A talented and dependable workforce is important for innovation and efficiency in operations for any corporation. The company demonstrates its desire for employee welfare with healthcare services and carefully developed online resources. With an employee turnover ratio of less than 5%, Johnson & Johnson demonstrates that it is capable of attracting and retaining the right kind of people to help it remain successful. B. Competitive Positioning – Differentiation and Resource Allocation As stated in the annual report, Johnson & Johnson is a company focused on broad-based human healthcare.It offers a plethora of products throughout its pharmaceutical, medical devices and diagnostics, and consumer products divisions. These products are made in response to both local and global consumer demands, representing solutions for many different customer segments. These factors are evidence that Johnson & Johnson has chosen the competitive strategy of differentiation. Using this strategy affords Johnson & Johnson a sense of prestige and quality and this is evident in its pricing practices.However, the company does use competitive pricing strategies and is continually trying to find ways to lower costs without sacrificing quality or reputation. Johnson & Johnson is constantly seeking to expand its product portfolio across all divisions and spends large amounts of money in R&D to that end. A Johnson & Johnson representative said, â€Å"Be the first, be the best. † This is the most effective way for the company to enter new markets and secure a strong position by being the first to offer the right products in the right locations in a time efficient manner.Johnson & Johnson’s ability to perform these actions successfully is due to the sprawling nature of its subsidiaries and the amount of resources dedicated towards making sure that they all work with each other and share information. Johnson & Johnson holds a very strong competitive position versus other corporations due to the amount of its resources and depth of its operations. It is able to maintain its position as market leader in several product categories, as well as penetrate emerging markets, be cause of its ability to adapt quickly and intelligently.The company must remain vigilant, however, as complacency can result in loss of market share. V. Assessing Effectiveness and Conclusion In today’s fast-paced business environment, any firm needs to consistently reevaluate its strategic positioning, but in industries as competitive as the ones in which Johnson & Johnson competes, continual evaluation is vital for long-term success. By any quantitative measures, Johnson & Johnson is a very successful company, and the fact that it has earned a profit for 75 straight years suggests that there is a definite plan for long-term success.The company’s famous credo, known as â€Å"Our Credo† and written by former chairman Robert W. Johnson in 1943, may have a role in this success. The credo outlines Johnson & Johnson’s responsibilities to its customers, employees, communities, and finally its stockholders. It also establishes the principles that guide the comp any, from making high quality products and recognizing employees’ merit to protecting the environment and experimenting with new ideas. Johnson & Johnson’s credo has endured, unchanged, for over 65 years. While it does not explicitly state long term goals, the principles within it express the company’s intrinsic values.According to the company’s website, â€Å"Our Credo is more than just a moral compass. We believe it’s a recipe for business success. The fact that the Johnson  & Johnson is one of only a handful of companies that have flourished through more than a century of change is proof of that. † Johnson & Johnson has indeed flourished. It consistently tops the corporate reputation charts and is a role model for social responsibility. Moreover, the company is clearly prepared for the many challenges its ever-changing international business environment poses.Due to its strategic positioning and eye on the future, Johnson & Johnson will likely survive another century. REFERENCES Academic Visit to Johnson & Johnson, Prague, Czech Republic. â€Å"2008 Annual Report. † Johnson & Johnson Gassman, Oliver, Gerrit Reepmeyer and Maximilian von Zedtwitz. â€Å"Leading Pharmaceutical Innovation. † Springer â€Å"The Global Pharmaceutical Industry. † Duke University â€Å"Mental health drug market tapped out? † CNNMoney. com â€Å"Our Credo Values. † Johnson & Johnson. â€Å"Patent Expirations Behind J&J Cuts, C&T Looks Closer at Patents. † Cosmetics and Toiletries

Biography of Michelle Obama, U.S. First Lady

Biography of Michelle Obama, U.S. First Lady Michelle Obama  (born January 17, 1964) was the first African-American first lady and the wife of Barack Obama, the 44th president of the United States and the first African-American to serve as president. She is also a lawyer, the former vice president of community and external affairs at the University of Chicago Medical Center, and a philanthropist. Fast Facts: Michelle Obama Known For: First Lady of the United States, wife to 44th President Barack ObamaBorn: January 17, 1964 in Chicago, IllinoisParents:  Marian Shields and Fraser C. Robinson IIIEducation: Princeton University (BA in sociology), Harvard Law School (JD)Published Works: BecomingSpouse: Barack Obama (m. October 3, 1992)Children: Malia (born in 1998) and Natasha (known as Sasha, born in 2001) Early Life Michelle Obama (nee Michelle LaVaughn Robinson) was born on January 17, 1964, in Chicago, Illinois, the second of two children of Chicagoans Marian Shields and Fraser C. Robinson III. She describes her parents as important early role models in her life, whom she proudly identifies as working class. Her father, a city pump operator and Democratic precinct captain, worked and lived with multiple sclerosis; his limp and crutches did not affect his abilities as the family breadwinner. Michelles mother stayed home with her children until they reached high school. The family lived in a one-bedroom apartment on the top floor of a brick bungalow on Chicagos south side. The living room- converted with a divider down the middle- served as Michelles bedroom. Michelle and her older brother Craig, now an Ivy League basketball coach at Brown University, grew up hearing the story of their maternal grandfather. A carpenter who was denied union membership due to race, Craig was shut out of the citys top construction jobs. Yet the children were taught they could succeed despite any prejudices they might encounter over race and color. Both children were bright and skipped second grade. Michelle entered a gifted program in sixth grade. From their parents, who had never attended college, Michelle and her brother learned that achievement and hard work were key. Education Michelle attended Whitney M. Young Magnet High School in Chicagos West Loop, graduating in 1981. Although she was discouraged from applying to Princeton by high school advisors who felt her scores werent adequate, she was accepted and graduated from the college with honors and a bachelors degree in sociology and a minor in African-American studies. She was one of very few black students attending Princeton at the time, and the experience made her acutely aware of the issues of race. After graduation, she applied to Harvard Law School and once again faced bias as college counselors tried to talk her out of her decision. Despite their doubts, she matriculated and excelled, obtaining her J.D. in 1985. Professor David B. Wilkins remembers Michelle as forthright: She always stated her position clearly and decisively. Career in Corporate Law After graduating from Harvard Law School, Michelle joined the law firm of Sidley Austin as an associate specializing in marketing and intellectual property. In 1988, a summer intern who was two years older than she by the name of Barack Obama came to work at the firm, and Michelle was assigned as his mentor. They married in 1992 and later had two daughters, Malia (born in 1998) and Natasha, known as Sasha (born in 2001). In 1991, the death of her father from complications related to MS caused Michelle to re-evaluate her life; she subsequently decided to leave corporate law to work in the public sector. Career in Public Sector Michelle first served as assistant to Chicago Mayor Richard M. Daly; later she became assistant commissioner of planning and development. In 1993 she founded Public Allies Chicago, which provided young adults with leadership training for public service careers. As executive director, she headed up a nonprofit named by President Bill Clinton as a model AmeriCorps program. In 1996, she joined the University of Chicago as Associate Dean of Student Services and established its first community service program. In 2002, she was named the University of Chicago Hospitals executive director of community and external affairs. Balancing Career, Family, and Politics Following her husbands election to the U.S. Senate in November 2004, Michelle was appointed Vice President of Community and External Affairs at the University of Chicago Medical Center in May 2005. Despite Baracks dual roles in Washington, D.C., and Chicago, Michelle did not consider resigning from her position and moving to the nations capital. Only after Barack announced his presidential campaign did she adjust her work schedule; in May 2007 she cut her hours by 80 percent to accommodate the needs of the family during his candidacy. Although she resists the labels feminist and liberal, Michelle Obama is widely recognized as outspoken and strong-willed. She has juggled career and family as a working mother, and her positions indicate progressive ideas on the roles of women and men in society. First Lady Michelles husband Barack was elected U.S. president in November 2007. During her first term as first lady, Michelle spearheaded the Lets Move! program, a concerted effort intended to reduce childhood obesity. Although it has been difficult to gauge the success of the program overall, her efforts led to the passage of the Healthy, Hunger-Free Kids Act in 2010, which allowed the U.S. Department of Agriculture to set new nutritional standards for all food sold in schools for the first time in more than 30 years. During Barack Obamas second term, Michelle focused on the Reach Higher Initiative, which aimed to help students identify future careers and enable them to complete coursework past high school- whether its at a professional training program, a community college, or a four-year college or university.  That initiative continues, with a focus on school counselor training, raising awareness about college access tools, and social media outreach and flagship events such as College Signing Day. Post-White House Since the Obamas left the White House in January 2016, Michelle worked on and published her memoir Becoming, published in November 2018. She has also worked on the Global Girls Alliance, an education project intended to help provide tens of millions of adolescent girls worldwide who were not given a chance to finish high school; Global Girls is an outgrowth of Let Girls Learn, which she started in 2015 and left with the White House. She has actively supported the Chicago-based Obama Foundation charity, and been a spokesperson for When We All Vote, to increase voter registration. Sources: Obama, Michelle. 2018. Becoming. New York: Crown, 2018.Saulny, Susan. Michelle Obama Thrives in Campaign Trenches. New York Times, 14 February 2008.Bennetts, Leslie. First Lady in Waiting. VanityFair.com, 27 December 2007.Gewertz, Catherine. Michelle Obamas Reach Higher Initiative Merges With the Common Application. Education Week Blog High School Beyond, 27 September 2018.  Ross Johnson, Steven. Gauging the public health value of Michelle Obamas Lets Move campaign. Modern Healthcare, 23 August 2016.Rossi, Rosalind. The woman behind Obama. Chicago Sun-Times, 22 January 2008.Slevin, Peter. Michelle Obama: A Life. New York: Vintage Books, 2015.Michelle Obama’s vacation is over. Now she’s claiming her own spotlight. The Washington Post, 11 October 2018.

A biography on Albert Einstein

A biography on Albert Einstein Of all the scientists to emerge from the nineteenth and twentieth centuries there is onewhose name is known by almost all living people. While most of these do not understandthis man's work, everyone knows that its impact on the world of science is astonishing. Yes,many have heard of Albert Einstein's General Theory of relativity, but few know about theintriguing life that led this scientist to discover what some have called, 'The greatest singleachievement of human thought.'Einstein was born in Ulm, Germany on March 14, 1874. Before his first birthday, his familyhad moved to Munich where young Albert's father, Hermann Einstein, and uncle set up asmall electro-chemical business. He was fortunate to have an excellent family with which heheld a strong relationship. Albert's mother, Pauline Einstein, had an intense passion formusic and literature, and it was she that first introduced her son to the violin in which hefound much joy and relaxation.English: Albert Einstein Franà §ais : po rtrait d'Al...Also, he was very close with his younger sister, Maja, andthey could often be found in the lakes that were scattered about the countryside nearMunich.As a child, Einstein's sense of curiosity had already begun to stir. A favorite toy of his washis father's compass, and he often marvelled at his uncle's explanations of algebra. Althoughyoung Albert was intrigued by certain mysteries of science, he was considered a slowlearner. His failure to become fluent in German until the age of nine even led some teachersto believe he was disabled.Einstein's post-basic education began at the Luitpold Gymnasium when he was ten. It washere that he first encountered the German spirit through the school's strict disciplinarypolicy. His disapproval of this method of teaching led to his reputation as a rebel.

Business Report Essay Example | Topics and Well Written Essays - 500 words - 1

Business Report - Essay Example Faster or afterwards all society regardless of culture, language or nationality arrives at the final stage of political and social development. This implies the entire society will be unified to co-exist with harmony, though prior to this they ought to undergo fierce engagement in terms good and evil, which aligns with premises put forth by Karl Marx and Chinese whom they proved through applying them in their lives. Second met account contends societies emerge in terms of following a linear progression to result to a singular end. Societies irrespective of culture or creed ought to progress from original structures whereby respective groups comprise the basic units towards modernized societies, hence prompting atomized people turning sovereign units. Consequently, all these are assumed to be cogent besides their intentions being to vote with the objective coming up with concrete decisions. Due to their rationality once they vote, end up ensuring sound governance besides harmony in their full existence. Eventually, electoral democracies will be the only political system for all countries and people with a free market to make them all rich. Those who endorse democracy with the mission of spreading it all around the world are as good and evil for those who do not hold elections. The effects of socialism in China as by the met narrative is that there was wide spread poverty in the country even in the period where Li was growing up. China was a struggling poor agricultural economy and businesses were doing fairly badly. The people were so poor and his family lived on food stamps and rationed portions of meat. The effects of electoral democracy often accompanied by capitalism are dismal performance of elected governments and civil strife especially in developing countries. China’s organizational system serves as a model for Human Resource Management and development as it is unbiased and efficient. It has divisions into state owned