The Video Game Industry

Abstract This research paper will cover the different aspects of project management in video game development. Focus will also be on discussing and overviewing the project lifecycles as it pertains to game development. There is also interest in seeing within the realm of video game development how the application of knowledge, various skills, tools, and the techniques are used. The will also be focus on examining pre-production, production and post production in the gaming industry. Topics will explore issues pertaining to, but not limited to, stakeholder expectations, timeliness of implementation, and optimization of resources. Additionally, information will be given covering the concepts of meeting the needs of business's vision and mission regarding development and exploring how the identification of and addressing any issues that may arise in game project development.? Introduction The video game industry has been steadily growing for over almost four decades. From Nintendo to Sony, there have been a myriad of games that have been made for the platform over the course of the video game industry. The initial commercial history of video games and the birth of this industry inevitably begins with the US military's computer hardware and networks. At the time, infrastructure was beginning to shift towards facilitating both game development and market consumption. Over the course of almost four decades, many games have been made, but the question is, exactly how are these spectacular pieces of art being made. When people buy video games, their focus is not on the people who actually make the product, or even on the process it takes to create the game that they own. Consumers only see the end product that is distributed and hit store shelves. For most, their energies and focus are on purchasing the product and investing in actual game play. However, the process and ma n power it takes to create a game is an intricate undertaking. It is stated that the intricacy of modern video games requires workers with varied skill sets such as computer engineers and programmers, visual artists, audio engineers, animators, game designers, writers, and quality assurance testers (Weststar, 2015). For starters the biggest component to game development are video game developers (VGDs) (Weststar, 2015). Additionally, these projects can consist of a producer and studios have a range of upper managers and administrative personnel. Weststar stated that with project-based model the outputs of each new game are unique. In turn the environment is complex and uncertain. Coordination among project members is rooted in diffuse and informal power relationships in relation to their roles as it pertains to those that direct the work and those who perform it (Weststar, 2015). Thusly, with the consumer, the process of making video games is a non-factor, largely an unknown, and rarely registers in the thoughts in most people's minds. Many again just see the end product, of which is what is their main motivating factor of going to a retail store and purchasing it. However, there is a select pocket of individuals who are more cognizant of the game development process and they are more greatly invested. For this segment, they faithfully follow their favorite game, or for some developer, and will be a ware the specifics from the announcement of the game and will stay engaged until the game goes gold. This is, going gold, that the game is finished and ready to be put on a disc and distributed. The creation of each video game is a project with a well-defined production cycle of pre-production, production, and post-production phases of which reach require different and various resources (Weststar, 2015). HistoryBefore one can actually delve it the game development process, it is important to have some background understanding on the development of the gaming industry. Nolan Bushnell is credited as the pioneer of the worldwide commercial video game industry. Bushnell was the founder of Atari and is responsible for generations of home and arcade gaming hardware and software including the truly influential game, Pong (Grantham ; Readman, 2006). Arcades games were very popular and peaked in the early 1980s. As time progressed and newer technologies burst onto the market most titles were converted to play on the evolving home technology – home computers and consoles (Grantham ; Readman, 2006). It was also during this time of change and development, many independent develop ers and publishers started to emerge. One of the most noted and widely known, Activision for example, was founded by former Atari developers seeking greater ownership and control over their developments (Grantham ; Readman, 2006). Over time people have come to recognize software games as new and very popular mode of entertainment and an important application of technology. This outlook has become increasingly accepted and by people of all ages. In today's culture, technology is easily accessible and has become more convenient. In turn more and more people like to play games and are also becoming motivated to design their own games. Also, software games are gaining importance because they are not only used for entertainment, but also for serious purposes that can be applicable to different domains such as education, business, and health care (Aleem, Fernando- Capretz, & Ahmed, 2016). Game Development ProcessPre-productionAs with any industry as it relates to project development, within the gaming industry, pre-production is the beginning phase of the life of a game, the project. It is during this phase that developers/project managers determine how long will it take to game to make, the personnel needed, and the budget needed to make the proposed project. During pre-production it is paramount that very specific goals are fleshed out of which will be essential to a successful project. Walfiz, Zackariasson and Wilson pointed out that certain elements are fundamental to projects: commitment to timing, staying within a budget, and producing an output (Zackariasson, Walfisz, & Wilson, 2006). Also, it is important to note that, these fundamentals are developed before the project starts, and thus commit both parties to specific activities/objectives. Drew Liming and Dennis Vilorio states that in the pre-production phase, the lead designers outline a game concept with the help of lead artists and programmers (Liming & Vilorio, 2011). Additionally, it is at this time that the lead designers might select special feature(s), such as an innovative gameplay element, or powerful graphics, that will make the game unique (Liming & Vilorio, 2011). It was also pointed out that when the game finally receives the funding needed, programmers begin building its technological framework (Liming & Vilorio, 2011). Pre-production considerations tends to produce a hierarchy of plans that guide the project and the pre-production phase is instrumental in producing the basis on which to build the game (Zackariasson, Walfisz, & Wilson, 2006). The over-ridding goal of pre-production is essentially to create a game plan that will be the road map in which the player(s) will finish the game. The game plan must include information of the game concept, the unique feature(s), the constraints that affect this concept, and analyzing risk assessment.Risk management is a necessary aspect of game project development. Alem, Carpatz and Ahmed states that the importance of risk management is essential for the efficiency of game development. Thusly this is often the focus for project management (Aleem, Fernando- Capretz, & Ahmed, 2016). Alem, Carpatz and Ahmed also state, that it is with the upmost importance to identify risk factors early in the game development process (Aleem, Fernando- Capretz, & Ahmed, 2016). During game development, the project manager is the game's producer and must bring together management, the technical components, and the appealing aspects to create a successful video game. They also identified two risk factors that must be addressed during this development process: failure of development strategy and absence of the fun factor (Aleem, Fernando- Capretz, ; Ahmed, 2016). Additionally, it is important to realize that in game development, other important risk factors can have an impact such as the development strategy, the fun factor or extent of originality, scheduling, and budgeting. With these, there will always be some level of â€Å"the unknown† when addressing risk factors. Taking time early on to identify risks is paramount as there will always be unforeseen issues in a project. Working to minimize as many issues initially will decrease unadvantageous developments later in the project development/production cycle. Thus, efficient work done during pre-production will work to minimize or even eliminate unforeseen issues. Production Now that the risks, personnel, and assets are identified, for the project, it can now to enter the production phase. Thusly, the completion of the prototype signals the start of the production phase of development (Liming ; Vilorio, 2011). During the production phase the project team can now move forth with focusing on the cusp of the project work. Energies can now finally be channeled towards actual development of the game. It is importance to note that certain aspects of the work can be initiated during pre-production. Thus, there can be at times, some objectives running concurrent and simultaneously with those that are just commencing. Even though the project team is in full stride during this phase, and most of the ideas are being carried out, some new plans can happen that may have an impact and thus alter work. For starters, assets can be added or even removed at this point. Accordingly, with these alterations, it is important that changes are accurately noted and are effectively communicated to the project team, the developer, studio upper management, and the publisher. Making such changes are crucial and essential and must be relayed in a timely manner. It is imperative that during development, the project document continues to remain as a point of reference for the entire project team. As pointed out by Liming and Vilorio, during the production phase, teams of designers, artists, and programmers use the project document as a guide to ensure efficient game creation (Liming ; Vilorio, 2011). When the plan is communicated to the project team, it is the role of the project manager to remain vigilant on keeping the plan up to date. Ensuring that there is sound communication and a streamlined vision/design, will allow the project teams to collaborate to make the most of each other's expertise (Liming & Vilorio, 2011). There is feedback during production that helps the project team revise the document as needed. For instance, feedback might encompass how to improve a game's mechanics, or more so, remove an unfeasible feature (Liming ; Vilorio, 2011). Throughout production, developers continually build improved versions of the game. This allows for the creation of more content that is better looking, more streamlined within a design, and thus is more refined (Liming ; Vilorio, 2011). Liming and Viliorio also went on further to state that the conclusion of the production phase is that the fully playable game includes art, music, and sound effects. This milestone is referred to as â€Å"content complete.† (Liming ; Vilorio, 2011).Post production Production ends when the developer and publisher agree that no more features are needed; thus, no features are added during post-production. Instead, the main goal of this phase is to finalize software quality. The post-production phase starts at least three months before the end-of-project deadline. During post-production the focus is on playing the game to test for errors, called bugs, and on tweaking it to eliminate unwanted elements (Liming ; Vilorio, 2011). Post-production is key for the game develop process as quality assurance and process validation are critical components. The quality assurance staff tests the game by playing it and attempting to do things the development staff never considered (Liming ; Vilorio, 2011). It is during this time that such things as bugs and compatibility issues are fixed. Additionally, work will be done to ensure that all coding is optimized. Process validation plays an important role in assessing game quality. Also, during this phase, the development process as a whole is analyzed. Collection and evaluation of process data from the pre-production phase through to the post-production phase can provide evidence that the overall development process produces a good-quality game. Congruously, analysis can depict either product errors, in-complement coding, or that the final product does not measure up to expectations. It is known, as the game testers find bugs, they document the errors and assign them to a programmer, designer, or artist to be addressed and fixed (Liming ; Vilorio, 2011). Efficiently identifying and correcting issues is essential for the game roll-out deadline. Additionally, the developer may sometime want the game put into consumer hands before official release. Such instances could be in the form of advance releases, or advance copies for select consumer testing and gameplay which is a marketing strategy in gaming. Developers also use beta testing. Beta testing in games is used to gage overall game functionality using external testers or a select segment of identified consumers (Aleem, Fernando- Capretz, ; Ahmed, 2016). Beta testing is a kind of first public release for testing purposes by users. Game publishers often find it effective because bugs are identified by users that were missed during the in-house testing process (Aleem, Fernando- Capretz, ; Ahmed, 2016). Dealing with bugs and tweaks can make postproduction time-consuming. Thus, the process may take as long as production, especially for more complex games that have bigger budgets (Liming ; Vilorio, 2011). Conclusion The video game industry has grown tremendously over the last four decades. From Nintendo to Sony, a plethora of games have been made over the course of the video game industry. Games, the end-products, are the results of the efforts of many. The process of video game development is an intricate undertaking. The production cycle encompasses a myriad of derivatives which adhere to pre-production, production, and post-prediction phases. During the entire production cycle of a game key players such as computer engineers and programmers, visual artists, audio engineers, animators, game designers, writers, and quality assurance testers are involved. The pre-production phase helps lay out the groundwork and plan that will be followed as the game develops. During pre-production specific goals are fleshed out and key fundamental elements to the project are identified. It also during this phase that focus is on working to minimize as many issues initially. This works to decrease unneeded or potentially negatively impacting developments later in the project development/production cycle. During the production phase the project team's main focus is on the actual creation of the game. It is during the production phase that new plans can happen which can have impact and alter work. A project document is used to ensure efficient game development and thus the project manager must ensure that the plan is up to date. Additionally, the project manager will work to ensure that there is sound communication for the entire team. When the game has entered post-production, the focus is on playing the game to test for errors and other unwanted elements. There is a lot of focus on quality assurance. Within the gaming industry, testing can be done both in-house and the use of a select segment of consumer beta testers. Though most consumers only see the end product that is distributed and hit store shelves, there is a lot that has happened to ensure that the they will have a quality game playing experiences. Additionally, there is a select pocket of consumers who are more engaged development process and have a greater apperception for the game development process. Overall there is a great deal that transpires in the development of a game. From stakeholder expectations to timeliness of implementation, a lot of resources have been invested to create that end-product game. Understanding the life of a game through the lens of game development production cycle helps to foster a heightened appreciation for the final pro duct.

Book Review “Thinking, Fast and Slow” Essay

I read the international bestseller â€Å"Thinking, Fast and Slow† of Daniel Kahneman (Winner of the Nobel Prize) over the last 3-4 weeks. I think it is a very interesting book and it is describing very critically the human brain and mind, which gave me many insights into decision-making and errors we are doing automatically without noticing it every day. He is very often talking about â€Å"System 1† and â€Å"System 2†. System 1 is fast; it’s intuitive, associative, metaphorical, automatic, impressionistic, and it can’t be switched off. Its operations involve no sense of intentional control, but it’s the â€Å"secret author of many of the choices and judgments you make† and it’s the hero of Daniel Kahneman’s book Thinking, Fast and Slow. System 2 is slow, deliberate, effortful. Its operations require attention. System 2 takes over, rather unwillingly, when things get difficult. It’s â€Å"the conscious being you call ‘I'†, and one of Kahneman’s main points is that this is a mistake. You’re wrong to identify with System 2, for you are also and equally and profoundly System 1. Kahneman compares System 2 to a supporting character who believes herself to be the lead actor and often has little idea of what’s going on. System 2 is slothful, and tires easily – so it usually accepts what System 1 tells it. It’s often right to do so, because System 1 is for the most part pretty good at what it does; it’s highly sensitive to subtle environmental cues, signs of danger, and so on. It does, however, pay a high price for speed. It loves to simplify, to assume WYSIATI (â€Å"what you see is all there is†), even as it gossips and embroiders and confabulates. It’s hopelessly bad at the kind of statistical thinking often required for good decisions, it jumps wildly to conclusions and it’s subject to a fantastic suite of irrational biases and interference effects (the halo effect, the â€Å"Florida effect†, framing effects, anchoring effects, the confirmation bias, outcome bias, hindsight bias, availability bias, the focusing illusion, and so on). Thousands of experiments have been conducted, right across the broad board of human life, all to the same general effect. We don’t know who we are or what we’re like, we don’t know what we’re really doing and we don’t know why we’re doing it. That’s a System 1 exaggeration, for sure, but there’s more truth in it than you can easily imagine. Judges think they make considered decisions about parole based strictly on the facts of the case. It turns out (to simplify only slightly) that it is their blood-sugar levels really sitting in judgment. We also hugely underestimate the role of chance in life (this is again System 1’s work). Analysis of the performance of fund managers over the longer term proves conclusively that you’d do just as well if you entrusted your financial decisions to a monkey throwing darts at a board. There is a tremendously powerful illusion that sustains managers in their belief their results, when good, are the result of skill; Kahneman explains how the illusion works. The fact remains that â€Å"performance bonuses† are awarded for luck, not skill. They might as well be handed out on the roll of a die: they’re completely unjustified. This may be why some banks now speak of â€Å"retention bonuses† rather than performance bonuses, but the idea that retention bonuses are needed depends on the shared myth of skill, and since the myth is known to be a myth, the system is profoundly dishonest – unless the dart-throwing monkeys are going to be cut in. In an experi ment designed to test the â€Å"anchoring effect†, highly experienced judges were given a description of a shoplifting offence. They were then â€Å"anchored† to different numbers by being asked to roll a pair of dice that had been secretly loaded to produce only two totals – three or nine. Finally, they were asked whether the prison sentence for the shoplifting offence should be greater or fewer, in months, than the total showing on the dice. Normally the judges would have made extremely similar judgments, but those who had just rolled nine proposed an average of eight months while those who had rolled three proposed an average of only five months. All were unaware of the anchoring effect. The same goes for all of us, almost all the time. We think we’re smart; we’re confident we won’t be unconsciously swayed by the high list price of a house. We’re wrong. (Kahneman admits his own inability to counter some of these effects.) We’re also hopelessly subject to the â€Å"focusing illusion†, which can be conveyed in one sentence: â€Å"Nothing in life is as important as you think it is when you’re thinking about it.† Whatever we focus on, it bulges in the heat of our attention until we assume its role in our life as a whole is greater than it is. Daniel Kahneman won a Nobel prize for economics in 2002 and much of his time he’s working together with Amos Tversky. Thinking, Fast and Slow has its roots in their joint work. It is an outstanding book, distinguished by beauty and clarity of detail, precision of presentation and gentleness of manner.

Ethical Fashion Essay

Presessional Academic English Programme 2010 Unconditional What role,if any,does ethics play in the fashion/design industry? Ethical fashion means fashion which takes into consideration the people behind the clothes we wear,as well as the environment. When you buy some clothes, you may not consider twice about where it was originally made,by whom and under what conditions. These days people like fast fashion. Fast fashion means fashion that is fast. In other word, these clothes adapt to the latest trends quickly. It gives people satisfaction using their mentality that they want to bargain.However, we should think how can they be sold with a cheap price. Maybe fast fashion helps to boost fashion industry in a short time but It has a lot of side effects environmentally. (How to write a meaning of ethical fashion is clearly outlined in this site: http://www. fairfashion. info/de/what. html) At first, fast fashion absolutely causes pollution. In a process of manufacture, making cotton ha s an effect on using vast amount of chemicals and water. For example, The Aral Sea has begun to under-go a process of desertification. Growing cotton is one of the main reason of Aral’s loss.In addition, Pesticides have used 54% annually in India which is one of the largest cotton farm. Perilous pesticides associated with the cotton production make a water pollution. Moreover, Child labourers are exposed on the risk of pesticides through participation in cotton production. That is why it is important to keep a slow fashion(opposite of fast fashion)in our life. (Environmental Justice Foundation(n. d. ). Pesticides and Cotton. Retrieved from http://www. ejfoundation. org/page332. html) (Environmental Justice Foundation. (n. d. ). Water and Cotton. Retrieved from http://www. ejfoundation. rg/page334. html) Secondly, fast fashion also damages labor environment. The power of sweatshop still exist everywhere in the world. They have no regard for worker’s rights. It happens n ot only Indian workers but also Latino workers. For instance, Aracely who is immigrant from spain has worked in the sweatshops of Los Angeles. She should know the language but this is a luxury for her. She earns only $80 in week averagely. It can’t be stretched into a living wage. When Aracely and her co-workers asked for time off on Good Friday to attend church, the owner said : â€Å"Does God give you money?If you don’t want to work,just tell me. I will find others. † They look like exactly â€Å"modern slavery†. (Mort. J. (n. d. ). Sweatshop workers speak out. In Ross. A. (Ed. ). (May,1997). No Sweat. ) (Chamberlain. G. (2010) Revealed: Gap,Next and M&S. The guardian. The observer. 8th of August. ) In Conclusion, these reason are enough to explain how many problem fast fashion has. Fast fashion impacts to circumstances and other people who works for fashion industry socially. The fashion industry does not need to be this way. Recently, many companies a re trying to find ways to produce eco-friendly clothes.In addition, shopper called the Green Sumer increases steadily. Although it is to hard that fashion consumers give up to bargain, we also can do a lot by taking more ethical approach. This is a good way to go for fashion industry now and for ever. Presessional Academic English Programme 2010 Unconditional Ethical Fashion A sample of British designer Mark Liu's ‘zero waste fashion. ‘ /Courtesy of Gyeonggi Museum of Modern Art Presessional Academic English Programme 2010 Unconditional Bibliography http://www. fairfashion. info/de/what. html http://www. ethicalfashionforum. com http://www. jfoundation. org/ Environmental Justice Foundation. (n. d. ). Pesticides and Cotton. Retrieved from http://www. ejfoundation. org/page332. html Environmental Justice Foundation. (n. d. ). Water and Cotton. Retrieved from http://www. ejfoundation. org/page334. html Orexca. com. (n. d). The History of the Aral Sea. Retrieved from http:/ /www. orexca. com/aral_sea. shtml Chamberlain. G. (2010) Revealed: Gap,Next and M. The guardian. The observer. 8th of August. Ross. A. (Ed. ). (May,1997). No Sweat. Mort. J. (n. d. ). Sweatshop workers speak out. In Ross. A. (Ed. ). (May,1997). No Sweat.

Case Study Essay Example | Topics and Well Written Essays - 1500 words - 9

Case Study - Essay Example The firm has asked for my advice regarding possible growth strategies other than franchising. In evaluating possible strategies, I evaluate Armellini’s growth objectives; analyze Armellini’s internal strengths and weaknesses and its external opportunities and threats; develop relevant conclusions; and then offer specific recommendations. By definition, a strategy is an action plan to achieve a certain objective. So in order to suggest possible growth strategies, I must understand the firm’s objectives, especially those that have been agreed to between Armellini ownership (Armellini family) and top management (Helen Patterson). The case mentions only three overall business objectives that have been expressly agreed to: These objectives present several problems in fashioning appropriate growth strategies. First, only the third objective definitively addresses Armellini’s business growth; the others may affect the nature and quality of growth, but that is not entirely clear. Next, there are no financial objectives mentioned despite the recent precipitous decline in financial performance. Third, each objective is extremely vague; in order to serve as a guide to action plans, well-developed objectives should be specific, measurable, attainable, realistic and timely (SMART). Finally, these objectives ignore two critical standards for good business objectives: that they aim to create sustainable competitive advantage and build value for business owners. When crafted well, such objectives would reinforce each other, with competitive advantage leading to improved financial performance and value, and improved financial performance providing financial resources to invest in growth opportunities that promote competitive advantage. In light of these problems, in the following analysis I will also consider other growth objectives that would be appropriate to recommend to Armellini along with recommended growth strategies. These other

Feasibility Of Atomic Bombings In Hiroshima And Nagasaki Essay

Feasibility Of Atomic Bombings In Hiroshima And Nagasaki - Essay Example This paper will look at the usage of atomic bombs on Hiroshima and Nagasaki from the perspective in three dimensions and stages, how it impacted the situation in present, near future and longer future. Scenario behind Hiroshima events: There was a built up towards the Hiroshima and Nagasaki bombing event, and it did not happen without a reason or in a fortnight, series of events led to the occurrence of this, and it can be said that the threat was in the atmosphere ever since 1942. Events like Peal Harbor and Mid way Island incident further ignited it and can be termed as the possible reasons towards Hiroshima and Nagasaki events. Short term outcomes: In short term, it lead to the victory of the allies, while the Normandy operation, Pearl Harbor were hall marks of recent days in the Second World War, and a solution was sought. Japan was going all guns and exploiting anything possible and in sight, thereby they had to be controlled. The single event of Pearl Harbor speaks for the type of offensive intentions they possessed. Their actions were indiscriminate on many fronts pertaining to the non military and civilian areas attacks. The consequence of using atomic bomb was total destruction of axis. Leaving them crippled. The atomic bomb was a death blow and a last nail in the coffin, which led to complete surrender in no time. this had a direct impact on the German moral, and their troops surrendered in no time. A warning to Nazis: The atomic bomb on Japan was a clear warning to Germany. If they did not halt their activities, Berlin, Frankfurt, would be the next target. Thereby this action had great repercussions and all to the... Scenario behind Hiroshima events: There was a built up towards the Hiroshima and Nagasaki bombing event, and it did not happen without a reason or in a fortnight, series of events led to the occurrence of this, and it can be said that the threat was in the atmosphere ever since 1942. Events like Pearl Harbor and Mid way Island incident further ignited it and can be termed as the possible reasons towards Hiroshima and Nagasaki events. Short term outcomes: In short term, it leads to the victory of the allies, while the Normandy operation, Pearl Harbor was hall marks of recent days in the Second World War, and a solution was sought. Japan was going all guns and exploiting anything possible and in sight, thereby they had to be controlled. The single event of Pearl Harbor speaks for the type of offensive intentions they possessed. Their actions were indiscriminate on many fronts pertaining to the non-military and civilian areas attacks. The consequence of using the atomic bomb was the total destruction of the axis. Leaving them crippled. The atomic bomb was a death blow and a last nail in the coffin, which led to complete surrender in no time. this had a direct impact on the German morale, and their troops surrendered in no time. A warning to Nazis: The atomic bomb on Japan was a clear warning to Germany. If they did not halt their activities, Berlin, Frankfurt, would be the next target. Thereby this action had great repercussions and all to the positives in terms of the Allies action and strategies.

Energy Independence Psychology Personal Statement

Energy Independence Psychology - Personal Statement Example President Obama’s rhetoric about the green economy and independence from foreign energy producers is just that—rhetoric. Sadly, the President has played politics with this issue, refusing to pursue energy programs at home that would open up domestic sources of oil and gas. This is unfortunate especially because it means America is investing in a phantom â€Å"green† sector of the economy that is nowhere near to be being ready to take on the major demands of those who require energy The truth is that America has more than enough natural gas and oil within its own domestic territory to fuel this country for a long time to come. Those who refuse to recognize this are living with their heads in the sand. They need to wake up and begin to see that we have everything we need within our own country. I for one would like to see more drilling done in Alaska and in the Gulf of Mexico. America must start providing its own energy rather than relying on Arab dictators. Green energy projects across the U.S. are going bust (Paugh). There are a number of psychological reasons why people might endorse Obama’s green economy ideas. There is sometimes an information bias when it comes to politics. People often get caught up in their own world. They only read newspapers which they agree with and will only watch TV shows where the speakers tell them what they want to hear.

Attachment and Their Role in Intergenerational Continuity Essay

Attachment and Their Role in Intergenerational Continuity - Essay Example However, the attachment that humans experience is not utilitarian nor is it driven merely by a drive to satisfy some basic needs. Animal and human attachment process are directly linked to the social aspects of our lives and the constraints of survival in an uncertain environment. Bowlby's Theory of Attachment is of great value in studying the competence of human being in the struggle for survival, which in Darwin's view is possible based on fitness. The current evolutionary thinking considers structures and behavioral systems found in the population contributed to the reproductive success of the bearers in the milieu of evolutionary adapted ness. The biological function of attachment is to provide the conditions that keep proximity between infant and caregiver, which is essential for the infant to survive in a hostile environment. The caregiver-child strategies are aimed at accomplishing three universal goals. The are infant survival and eventual reproduction, economic self-sufficiency, and enculturation (Levine, 1982) The process of natural selection prefers individuals who invest a great deal on childcare and rearing. Thus the parents who devote to protect their offspring from hostile forces around them, like predatory and parasitic animals do so by developing bonds affection between them and their offspring. During early days of growth the young learn to discriminate between the parent that cares for them and other member of their species because parents discriminate between their own offspring and other small ones in the same species and may actually show aggression to young which are not their own. The child develops the filial imprinting and the young in no time learns to recognize their parents and follow them everywhere keeping nearness and close contact with them and shunning all but the close kin. With the development of locomotion, the child becomes an explorer. Nevertheless, its exploration of the environment is a gradual process and in a way an antithetical to attachment. The child does not embark upon a path of exploration suddenly. Initially there are spurts of exploration and return to a security zone (mother). In the interplay between exploration and return to the safety zone the child is trained to achieve a balance in his foray in to the world of danger. One of the most salient roles of the attachment behavior is to intervene in the baby's explorations of the environment and to keep it under leash so that through a slow process the child may gain the confidence to face the world alone. It is amazing that babies also actively cooperate in this process. Children approach their caregivers not only in response to danger but to ascertain their presence, which becomes an anchor for the children to explore securely the environment. Scientists have studied the nature of the attachments and made certain categories. However, these categories may not be considered as exclusive watertight compartments. The patterns of attachment are four: secure attachment, anxious-ambivalent insecure attachment, and anxious-avoidant insecure attachment and disorganized attachment. The four patterns of attachment has great ramification in the study of human behavior and can give important clues to adult behavior later in

Anything related to radioactivity or the nucleus Essay

Anything related to radioactivity or the nucleus - Essay Example An apprehension also exists that the debris from the tsunami, which may be contaminated with radiation, is likely to spread towards the east of Japan and probably may reach the US west coast in about two to three years time. The main threat derives from the fact that radiation can be carried to other parts of the world through air as well as water. Evidence points to the possibility that marine organisms, migrating out of Japan Sea, may be exposed to radiation and these â€Å"might subsequently be harvested by US fishermen† (Buck & Upton p.2). Therefore, scientists suggest that the US authorities should keep monitoring the radiation levels in the seafood so harvested, or being imported from Japan. However, they find solace on the premise that any possible radiation in the sea water will get diluted quickly and will not be â€Å"a problem beyond the coast of Japan† (Buck & Upton p.2). Environmental pollution or contamination is a serious hazard and there is a rising need for creating awareness of this problem among the masses. This article deals with a current issue of highly significant nature and, therefore, is very relevant in the present day. The authors have clearly brought out the problem and its specific impacts on the environment and, therefore, information contained in this article is useful not only for scientists and environmentalists but also for the general public. The article further emphasizes the need for continued monitoring of radiation levels as a response measure to combat contamination. Thus, this article is a significant contribution to the field of environmental studies and can create awareness in the public about the problems radiation can cause to the environment. Buck, H, Eugene & Upton, F, Harold. Effects of Radiation from Fukushima Dai- ichi on the U.S. Marine Environment. Congressional Research Service. 2012. Web. 15 August 2012.

Investment Portfolio Research Paper Example | Topics and Well Written Essays - 2500 words

Investment Portfolio - Research Paper Example It involves providing concise method of communicating the process and objectives amongst all parties involved with the investments and to assign responsibility for implementations. (Winfield R. G. and Curry S. J., 1995.) Once the Investment Policy has been established other factors affecting the investment such as financial and economic conditions, and risk factors will be examined. How to allocate the 100,000 to specific assets will be determined. RiskGrades will be used for optimal allocation. RiskGradeTM measure is an open and transparent benchmark to measure the risk of the world's financial assets. Another optimization criterion to be looked at briefly is the Markowitz co-variance approach. According to Markowitz, (1952), the co-variance matrix can be used to compute portfolio variance. Peter Zangari (1996)'s document on risk metrics assumes that the market is driven by risk factors with observable co-variance. These risk factors which have been incorporated in the analysis include; time series of prices or levels of stocks, currencies (foreign exchange rates), commodities and interest rates. The evaluation of investment performance is very important to any investor. Evaluation goes hand in hand with re-examining the policies and altering the strategies. The constructed portfolio will be monitored throughout the period under review. The reasons why it is performing in a certain way is examined. Policy Statement This is a statement of Investment Policy and investment goals, which establish the investment management procedures. The five basic components of the statement include; Summary of investor circumstances. Investment objectives, time horizon and risk attitudes. Permissible asset classes, constraints and restrictions. The asset allocation decisions. Selection, monitoring and control procedures. For an investor, investment policy depends on circumstances (Winfield, 2005). Institutional investor will be concerned with long-term investments as opposed to an individual investor who will be limited to personal factors such as financial situation, age, family circumstances, and personal preferences to risk. An elderly investor will invest in investments which are short-term though the risks might be high as opposed to a young investor. Diversification comes in for the issue of risks. Diversification is a risk limiting strategy. Since I am a young investor, I would like to diversify my investment and also take a greater amount of risk to enhance the potential earnings on the investment. According to Winfield (2005), as a

Analyze report grading rubric Assignment Example | Topics and Well Written Essays - 750 words

Analyze report grading rubric - Assignment Example Training is important because it helps equip the learners with the correct skills, attitudes and orientations towards work, helping them feel satisfied with their work (Price, 2000). The training is being performed in order to equip the supermarket personnel with the necessary skills of handling supermarket operations which include: customer service skills, inventory skills, managing skills and reporting skills. When the supermarket staff is recruited, they come from different fields which necessitate training in order for them to understand the operations of the supermarket. The problem comes as a result of deficiencies that result from their different training backgrounds. None of these people are trained in supermarket operation except for the top management that have specialized roles. The other people are sourced from around the community and thus may lack essential skills that are necessary in performing the tasks in the supermarket. The content of the training program is divided into four: customer service, inventory handling, managing and reporting. All the staff must go through the four topics exhaustively in order to be termed ready for placement within the supermarket chains. In the content, the staff learns practical and analytical skills which they are expected to use at the supermarket. The content will be delivered by way of direct instructions. In other instances depending on the nature of the topic, the content delivery mode will be experiential. This is true for customer service training as the people need to know how to handle the prospective customers. The program will take 6 months to be considered complete. Within the six months, one month will be assigned for assessment. The training will be conducted to young people between the ages of 20 to 30. This group is specifically considered by the management as appropriate to engage in the operations of the company. The group to be trained has

Summary Essay Example | Topics and Well Written Essays - 250 words - 91

Summary - Essay Example One does not have to complicate issues but rather perceive things as they are and slowly move to understanding the reason why they are as they are. The writer insists on keeping one’s eyes and mind open to diverse modes of reasoning. He explains that even in the darkness or blurriness of fog there seems to be specks of light. He states that in darkness there’s a great deal of light, the same lies for where there’s too much light. As he concludes, the writer describes the secret path to illumination. The writer talks about the ethics of journalism. This regards the type of imagery and language they use in describing events or people. He gave an example of black suspect whom the newspaper presumed guilty and as a result printed a photo that gave him a more sinister look that aimed at showing blacks are criminals. Ethics lay all round, including writing the truth in the newspapers and no amount of captioning can make a visual lie to be true. Disregarding the misrepresented information a lie still remains a lie. In conclusion, it is rather a question of ethical responsibility than just putting the message

Gabriel Oak Essay Example for Free

Gabriel Oak Essay The minor character in the novel, such as the farm labourers and Bathshebas maids, although appearing to be insignificant and unimportant actually have influential and crucial roles to play in the novel. They provide the story with many aspects which help move the plot forward whilst bringing authenticity, humour and personal views to the tale. Undeniably the most important minor character is Liddy, she provides the reader with large amounts of valuable information concerning the personalities of Bathsheba from the conversations they hold. This is mainly due to the close relationship between the two, Liddy being Bathshebas maid. As a result, the characteristics of the latter are shown, not through narration which would be too crude and observable for Hardys style, but through conversations between the two. By using this method Hardy can exercise his trademark subtlety and let the audience come to their own conclusions concerning Bathsheba, that of which Hardy originally intended. A good example of this technique where by using Liddy as a medium in which the characteristics of Bathsheba are fed to the reader is at the beginning of the novel where we first come into contact with Bathshebas excessive vanity. The following quote was from a conversation between the two women on the subject of Oaks proposal: HHHHHHHHHHHHsad A man wanted to once, she said, in a highly experienced voice How nice it must seem! said Liddy, with the fixed features of mental realization. And you wouldnt have him? He wasnt quite good enough for me. Although Liddys main role is to provide the reader with the characteristics of Bathsheba, she has also serves the purpose of moving the plot along. In fact, one of the most essential developments in the story was sparked by a comment from Liddy, the decision to send Boldwood the Valentine card which later lead to his complete psychological breakdown: What fun it would be to send it to the stupid old Boldwood, and how he would wonder! said the irrepressible Liddy. Besides Liddy there are also many other minor characters that play important and influential roles in providing the story with the ingredients that contribute to making the whole book an attractive read. One of the most major roles that they play is their comments on the main characters and actions which take place. This was Hardys method of relaying information that have not been directly covered in the narration to the readers. The mindless chat of the labourers and maids provide us with essential gossip on the actions of the main characters but also they provide the audience their own views on the subject in hand. By giving the reader views from characters in the book, Hardy knew that this would inspire our own thinking upon the subject and they for us to form our own judgements. From those judgements, the majority of the reader will come to the same conclusion, that of which Hardy originally intended. Due to the predictions that the reader will be subconsciously making whilst all this information is relayed to them it creates an air of suspense as one waits to see if their prediction was correct. An example of this can be seen when Gabriel Oak first arrives in Weatherbury and is told about the story of the stealing balif by the rustics: As to shepherd, there, Im sure misess ought to have made ye her baily-such a fitting man fort as you be. This comment by Joseph Poorgrass makes the reader wonder if Bathsheba will indeed employ Oak as her balif. And automatically the audience moves to the question of whether Oak and Bathsheba will actually develop a relationship should Oak work for her. This is Hardys technique of ensuring interest from the audience, by using the comments of the rustics he is able to create curiosity and suspense in the story. Another example of Hardys style of parallels of what is to happen comes from a conversation Liddy and Boldwood hold after the town hears of the death of Troy: My mistress certainly did once say, though not seriously, that she supposed she might marry again at the end of seven years from last year. Reading this remark once again sparks the interest of the readers drawing them to the question: will Bathsheba marry again at the end of the seven years and if so who? Boldwood or Oak? However, despite the subtle intention of drawing attention from the readers the rustics also have a more basic objective of providing the reader of more understanding of the characters and the events. Especially, we learn more detail regarding the past of the main characters which gives us a more comprehensive understanding of the saga as a whole. In addition, from this knowledge more accurate pre conceptions are made and leads back to the point I suggested previously on the topic of drawing interest. We learn that Boldwood has had madness in his family and therefore gain a more perceptive insight into Boldwoods passion and obsession: Oh Coggan, said Troy, as if inspired by a recollection, do you know if insanity has ever appeared in Mr.Boldwoods family? Jan reflected for a moment.

Dimensions of Organisational Misbehaviour

Dimensions of Organisational Misbehaviour Critically discuss the dimensions where organisational misbehaviour is rooted. Use relevant academic references and organisational examples to illustrate. Whilst the subject of organisational behaviour has been widely studied, as a method for improving the performance of organisations and improving the level of managerial control, organisational misbehaviour has received considerably less attention. Indeed, Ambrose et al (2002) argue that there is little agreement around the dominant motives of sabotage; which Ackroyd and Thompson (1999) cite as being the most hostile example of appropriation of work. This makes it somewhat difficult to accurately assess and discuss the dimensions where such misbehaviour is actually rooted, with the majority of the literature focusing on the impacts and manifestations of organisational behaviour, rather than the root causes. In spite of these difficulties, this piece will attempt to uncover the dimensions where organisational behaviour is rooted, through a detailed analysis and interpretation of the literature around organisational misbehaviour. One of the most interesting explanations comes from Spicer and Bohm (2007) who argue that organisational misbehaviour is simply another one of the methods through which workers can resist the hegemony of management. As such, this view of organisational misbehaviour fits it within the general framework of worker resistance, which includes trade unions and civic movements. Indeed, Spicer and Bohm (2007) argue that these forms of resistance only differ in terms of whether they take place inside or outside the workplace, and whether they are conducted inside or outside the organisational and societal norms. As such, one of the dimensions where organisational misbehaviour is rooted is arguably in the fact that managers have such absolute control over workers that workers will naturally tend to look for a way to regain some of this control. Organisational misbehaviour may simply be a method for achieving this for workers whose concerns are not met by unions or civil movements. Boddy (2006) looks at another potential cause: the presence of so called ‘organisational psychopaths’, who are determined to make life difficult and exploit the organisations and corporations which employ them. Their study indicates that organisational psychopaths make up around one per cent of the employable population but, similar to societal psychopaths, are almost undetectable to employers and co workers. As such, they manage to present themselves as being desirable employees, in order to obtain valuable positions within organisations. Their psychopathic nature means that they have no conscience, and hence are willing to lie, charm and manipulate their way through an organisation, in order to pursue their ultimate goals. These may be to obtain power and status, or may simply be to obtain as much wealth as easily as possible. As such, they tend to create the majority of organisational misbehaviour, using tools such as fraud, stock manipulation, theft, lying and other methods. In the worst case, such psychopaths can rise to the top of a major corporation, and hence the entire organisation indulges in misbehaviour designed to benefit itself at the expense of society (Boddy, 2006). Everton et al (2005) provide a different argument, claiming that whilst some employees will simply misbehave, due to circumstances or a lack of morals, the majority of organisational misbehaviour occurs in response to unfair managerial policies. Indeed, their initial case study demonstrates how previously responsible and high performing employees can be turned to organisational misbehaviour, such as the appropriation of time, by poor quality supervision. Their other research also demonstrates how Robinson and Bennett’s (1995) typology of organisational misbehaviour can be used to support a correlation between management styles and fairness, and organisational misbehaviour. Whilst, this study runs into significant difficulties as a result of the difficulties in separating genuine issues, such as illness, from organisational misbehaviour, such as calling in sick. However, it also points out significant variations in rates of theft, turnover and aggression, and indicates that the se variations can largely be explained by the level of fairness displayed by managers, and the amount of organisational justice present in the organisation (Everton et al, 2005). As such, the level of fairness and justice can be seen as a significant dimension where organisational misbehaviour is rooted. Gruys and Sackett (2003) also revealed three further dimensions in which organisational misbehaviour was rooted. The first two of these stemmed from the results of their study into the root causes, and showed that the interpersonal and organisational relationships were a key driver of organisational misbehaviour, as was the task relevance. This indicates that the relationships that employees hold with their co workers, and the organisation as a whole, are key drivers of organisational misbehaviour: if an employee does not get on well with their co workers, they are more likely to let them down by skipping work or other forms of misbehaviour. Also, as was also shown by Everton et al (2005), giving an employee a task which is not relevant to their skills or interests is more likely to increase their level of misbehaviour and discontent. However, one interesting finding which was not part of the actual study was the discovery of general positive correlations between all different types of organisational misbehaviour. This tends to indicate that initial misbehaviour leads to more, potentially more serious, offences. For example, an employee who successfully claims one fake sick day may be encouraged to claim more, and may then move on to other offences such as theft and fraud (Gruys and Sackett, 2003). Another potential dimension comes from the public sector in the UK, where government reforms of the NHS have led to doctors becoming increasingly responsible for the overall management of the hospital. As a result of this role confusion, and workload increase, many doctors have begun to engage in what could be referred to as organisational misbehaviour (Forbes et al, 2004). In particular, this can involve breaches of management expectations, and a move towards getting even, when these breaches occur. However, this type of misbehaviour tended to be strongly dependent on the nature of in individual, with some doctors actively pursuing their management responsibilities, and others merely assuming management roles out of a belief that they must, or that if they did not they would fall under the influence of less capable managers. As such, the ones who reluctantly assumed managerial roles were more likely to poor relationships with hospital managers, as a result of their unwillingness und erstand and fulfil their dual responsibilities (Forbes et al, 2004). This indicates that role confusion can be a contributor to organisational misbehaviour, for certain types of people. Finally, Johnson and Indvik (2001) provide a potentially more mundane dimension along which some transitory organisational misbehaviour, such as incivility and anger, can be rooted. Their data implies that factors such as workplace stress and a dislike of the actual act of working can encourage incivility, and sometimes hostility, towards co workers. Whilst these issues have not been proven to lead to more serious forms of organisational misbehaviour, given that Gruys and Sackett (2003) have shown that misbehaviour tends to breed further misbehaviour, it is clear that even minor forms of misbehaviour such as these need to be addressed or they can spread throughout an organisation. In conclusion, there are a variety of dimensions within which organisational misbehaviour is rooted, some of which are internal to the organisation, and some of which are simply inherent to the particular individual, such as an unwillingness to undertake a certain role, or even organisational psychopathy. In addition, the literature has shown that even minor concerns, such as stress or dislike of work, can lead to initial organisational misbehaviour, and this misbehaviour can then potentially spiral and trigger more serious misbehaviour. As such, it is important for any organisation to do as much as possible to minimise the managerial and organisational factors which create and exacerbate organisational misbehaviour. References Ackroyd, S. and Thompson, P. (1999) Organisational Misbehaviour. London: Sage Publications Ltd. Ambrose, M. L. Seabright, M. A. and Schminkec, M. (2002) Sabotage in the workplace: The role of organizational injustice. Organizational Behavior and Human Decision Processes; Vol. 89, p. 947-965. Boddy, C. R. (2006) The dark side of management decisions: organisational Psychopaths. Management Decision; Vol. 44, Issue 10, p. 1461-1475. Everton, W. J. Jolton, J. A. and Mastrangelo, P. M. (2005) Be nice and fair or else: understanding reasons for employees’ deviant behaviours. Journal of Management Development; Vol. 26, Issue 2, p. 117-131. Forbes, T. Hallier, J. and Kelly, L. (2004) Doctors as managers: investors and reluctants in a dual role. Health Services Management Research; Vol. 17, Issue 3, p. 167-176. Gruys, M. L. and Sackett, P. R. (2003) Investigating the Dimensionality of Counterproductive Work Behaviour. International Journal of Selection and Assessment; Vol. 11, Issue 1, p. 30-42. Johnson, P. R. and Indvik, J. (2001) Rudeness and Work: Impulse over Restraint. Public Personnel Management; Vol. 30, Issue 4, p. 457-465. Robinson, S. and Bennett, R. (1995) A typology of deviant workplace behaviors: a multidimensional scaling study. Academy of Management Journal; Vol. 38, Issue 2, p. 555-72. Spicer, A. and BÃ ¶hm, S. (2007) Moving Management: Theorizing Struggles against the Hegemony of Management. Organization Studies; Vol. 28, Issue 11, p. 1667-1698.

Concepts of leadership | An overview

Concepts of leadership | An overview What is your understanding of leadership? Explain the general concepts of leadership. Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more organized and logical meaning Leadership is a process whereby an individual influences a group of individuals to achieve a common goal. Leaders carry out this process by applying their leadership knowledge and skills. However, we know that we have personality that can influence our actions. If a leader has the desire and willpower, one can become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience. A dedicated leader inspires his workers into higher levels of teamwork, there are certain things that an effective and dedicated leader must be, know, and, do. These do not come naturally, but are acquired through continual work and study. Effective and dedicated leaders are continually working and studying to improve their leadership skills meaning they are not resting on their success. While leadership is learned, the skills and knowledge processed by the leader can be influenced by his or hers attributes or traits, such as beliefs, values, ethics and character. Knowledge and skills contribute directly to the process of leadership, while the other attributes give the leader certain characteristics that make him or her unique meaning skills, knowledge, and attributes make the Leader more effective and de dicated. Factors of Leadership Leader You must have an honest understanding of who you are, what you know, and what you can do. Also, note that it is the followers, not the leader or someone else who determines if the leader is successful. If they do not trust or lack confidence in their leader, then they will be uninspired. To be successful you have to convince your followers, not yourself or your superiors, that you are worthy of being followed. Followers Different people require different styles of leadership. For example, a new hire requires more supervision than an experienced employee. A person who lacks motivation requires a different approach than one with a high degree of motivation. You must know your people! The fundamental starting point is having a good understanding of human nature, such as needs, emotions, and motivation. You must come to know your employees be, know, and do attributes. Communication You lead through two-way communication. Much of it is nonverbal. For instance, when you set the example, that communicates to your people that you would not ask them to perform anything that you would not be willing to do. What and how you communicate either builds or harms the relationship between you and your employees. Situation All situations are different. What you do in one situation will not always work in another. You must use your judgment to decide the best course of action and the leadership style needed for each situation. For example, you may need to confront an employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective. Also note that the situation normally has a greater effect on a leaders action than his or her traits. This is because while traits may have an impressive stability over a period of time, they have little consistency across situations. Leadership Models Structural Framework In an effective leadership situation, the leader is a social architect whose leadership style is analysis and design. While in an ineffective leadership situation, the leader is a petty tyrant whose leadership style is details. Structural Leaders focus on structure, strategy, environment, implementation, experimentation, and adaptation. Human Resource Framework In an effective leadership situation, the leader is a catalyst and servant whose leadership style is support, advocating, and empowerment. while in an ineffective leadership situation, the leader is a pushover, whose leadership style is abdication and fraud. Human Resource Leaders believe in people and communicate that belief; they are visible and accessible; they empower, increase participation, support, share information, and move decision making down into the organization. Political Framework In an effective leadership situation, the leader is an advocate, whose leadership style is coalition and building. While in an ineffective leadership situation, the leader is a hustler, whose leadership style is manipulation. Political leaders clarify what they want and what they can get; they assess the distribution of power and interests; they build linkages to other stakeholders, use persuasion first, then use negotiation and coercion only if necessary. Symbolic Framework In an effective leadership situation, the leader is a prophet, whose leadership style is inspiration. While in an ineffective leadership situation, the leader is a fanatic or fool, whose leadership style is smoke and mirrors. Symbolic leaders view organizations as a stage or theater to play certain roles and give impressions; these leaders use symbols to capture attention; they try to frame experience by providing plausible interpretations of experiences; they discover and communicate a vision. The Two Most Important Keys to Effective Leadership Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization. Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence: Helping employees understand the companys overall business strategy. Helping employees understand how they contribute to achieving key business objectives. Sharing information with employees on both how the company is doing and how an employees own division is doing à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ relative to strategic business objectives. Principles of Leadership Know yourself and seek self-improvement In order to know yourself, you have to understand your be, know, and do, attributes. Seeking self-improvement means continually strengthening your attributes. This can be accomplished through self-study, formal classes, reflection, and interacting with others. Be technically proficient As a leader, you must know your job and have a solid familiarity with your employees tasks. Seek responsibility and take responsibility for your actions Search for ways to guide your organization to new heights. And when things go wrong, they always do sooner or later à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ do not blame others. Analyze the situation, take corrective action, and move on to the next challenge. Make sound and timely decisions Use good problem solving, decision making, and planning tools. Set the example Be a good role model for your employees. They must not only hear what they are expected to do, but also see. Know your people and look out for their well-being Know human nature and the importance of sincerely caring for your workers. Keep your workers informed Know how to communicate with not only them, but also seniors and other key people. Develop a sense of responsibility in your workers Help to develop good character traits that will help them carry out their professional responsibilities. Ensure that tasks are understood, supervised, and accomplished Communication is the key to this responsibility. Train as a team Although many so called leaders call their organization, department, section, etc. a team; they are not really teamsthey are just a group of people doing their jobs. Use the full capabilities of your organization By developing a team spirit, you will be able to employ your organization, department, section, etc. to its fullest capabilities. Attributes of Leadership If you are a leader who can be trusted, then those around you will grow to respect you. BE KNOW DO BE a professional. Examples: Be loyal to the organization, perform selfless service, and take personal responsibility. BE a professional who possess good character traits. Examples: Honesty, competence, candor, commitment, integrity, courage, straightforwardness, imagination. KNOW the four factors of leadership à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ follower, leader, communication, situation. KNOW yourself. Examples: strengths and weakness of your character, knowledge, and skills. KNOW human nature. Examples: Human needs, emotions, and how people respond to stress. KNOW your job. Examples: be proficient and be able to train others in their tasks. KNOW your organization. Examples: where to go for help, its climate and culture, who the unofficial leaders are. DO provide direction. Examples: goal setting, problem solving, decision making, planning. DO implement. Examples: communicating, coordinating, supervising, evaluating. DO motivate. Examples: develop morale and esprit de corps in the organization, train, coach, counsel. The Process of Great Leadership The road to great leadership (Kouzes Posner, 1987) that is common to successful leaders: Challenge the process First, find a process that you believe needs to be improved the most. Inspire a shared vision Next, share your vision in words that can be understood by your followers. Enable others to act Give them the tools and methods to solve the problem. Model the way When the process gets tough, get your hands dirty. A boss tells others what to do, a leader shows that it can be done. Encourage the hearts Share the glory with your followers hearts, while keeping the pains within your own. Great Business Leaders of New Zealand Air NZ chief executive Rob Fyfe Fyfe this year did what his predecessors had failed to do he did the decent thing and apologized for the airlines behavior following the Erebus tragedy. That got the most headlines, but relatively quietly this year the airline has survived the most severe aviation slump in history in profit and in good shape for 2010, with new planes on order and a makeover coming. Ryman Healthcare chief executive Simon Challies Simon Challies has been described by institutional investors as one of the years outstanding performers. He runs the national retirement village chain from Christchurch. Ryman, with a $1 billion market capitalization, last month posted a realized profit of $29 million for the half-year to September 30, up 12 per cent

Denmark Vesey Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Denmark Vesey was an African-American leader of an attempted slave insurrection in 1822. After many years as a slave, he won $1,500 in a lottery. Vesey used this money to purchase his freedom. He used his intelligence, energy, and luck to acquire considerable wealth and influence in South Carolina. All of these factors helped lead to the largest attempted slave revolt in American history. David Robertson’s book Denmark Vesey outlines his life as a slave, to his freedom, to his execution, and the consequences of the aftermath.   Ã‚  Ã‚  Ã‚  Ã‚  South Carolina was one of the only states in which the black slaves and abolitionists outnumbered their oppressors. Denmark Vesey’s slave revolt consisted of over nine-thousand armed slaves, free blacks, and abolitionists, that would have absolutely devastated society in South Carolina for slave owners, and could have quite possibly been a major step towards the abolishment of slavery in the United states. Robertson succeeded in describing the harsh conditions of slaves in pre-civil war Charleston, South Carolina. This book also helped me to understand the distinctions between the different groups. These groups including the black slaves, free blacks, extreme abolitionists, and the pro-slavery communities.   Ã‚  Ã‚  Ã‚  Ã‚  David Robertson’s Denmark Vesey is sub-titled ‘The Buried History of America’s Largest Slave Rebellion and the Man Who Led It.’ This title is extremely appropriate because of the lack of available information regarding the Denmark Vesey rebellion. No one knows the details of the former-slave’s life such as his background, birthplace [â€Å"It is not confirmable whether Vesey was born in Africa or the West Indies.†], place of execution, or physical appearance. Charlestonian officials considered all facts and records of the plans of the revolt to be too dangerous to keep, with the fear of another slave being negatively influenced by them. Nearly all copies of the record of the event, an official report of his trial, and other information were confiscated and burned. The Denmark Vesey revolt is nearly forgotten because of this. Considering the resources that were available to Robertson, Denmark Vesey was well researched, and f actual, without his own opinion showing through too much. For these thoughts he added in his own chapter â€Å"A Personal Conclusion.†... ...ible, even though the book is relatively short. Denmark Vesey gives a good foundation of information on the subject, but is lacking in certain areas.   Ã‚  Ã‚  Ã‚  Ã‚  In spite of its deterioration, the aftermath of the revolt had extensive consequences. Robertson particularized them with references to John Calhoun fortifying South Carolina before the civil war occurred. It also left a scare in the people’s minds, and was another small step towards the abolishment of slavery. Robertson analyzed the aftermath in a variety of aspects, including the effects on the public, and the government.   Ã‚  Ã‚  Ã‚  Ã‚  Denmark Vesey by David Robertson, is an important contribution to American historiography. His â€Å"detective story† is about a forgotten event, which is commonly overlooked when studying American history. It is undeniable that if the Denmark Vesey revolt had taken place, American history would have been changed forever, with ideas about slavery being changed, and the complete destruction of Charleston, South Carolina. David Robertson adequately relayed the event in a way that portrayed Denmark Vesey to be a hero, and a source of pride for African-Americans.

To Kill a Mockingbird, Chapter 20 Analysis :: To Kill a Mockingbird Essays

In chapter 20 of â€Å"To kill a Mockingbird†, Harper Lee wrote about the great divide between black and white people in Maycomb County, and why the public should not judge them too harshly. The Author explains all this through Atticus who is fighting on Tom Robinson’s behalf, that Tom did not rape Mayella Ewell. Atticus tried to persuade the jury beyond reasonable doubt, that Mayella was simply claiming Tom had raped her, to cover up for her wanting to kiss and tempt Tom Robinson (A black man). Atticus explained that Mayella had obviously broken no law, but â€Å"a rigid and time-honoured code of their society† and whoever broke this code would be â€Å"hounded from their midst as unfit to live with† (page.224). Atticus explains that guilt was her motivation, Mayella was just one among thousands that would be ashamed to have any relationship with a black man, other than him being a â€Å"servant†. Mayella simply did not want to be tormented or seen as a â€Å"Negro lover†, so she decides to get rid of the evidence, Tom Robinson’s life. It is also clear, that Atticus believes in Tom Robinson’s innocence with a passion. Atticus is not defending the man just because judge Taylor appointed him, he is defending him out of his own moral principles. Not because he has to, but because he wants to and its what he believes is right. Atticus refers to Tom as a â€Å"quiet, respectable, humble Negro† (page.225). Even though Atticus tries to be on good terms with all people, he has a dislike for people who fall under the category of â€Å"white trash†. However his view on people like this is incredibly different to the stereotypical view, which is shown more by his sister Alexandra. Alexandra, like many others, believes that if people are from a poor family or a family that had a â€Å"bad streak†, then they are not worthy to be friends with people like the Finches. Atticus’ view is completely opposite. He sees people for their qualities and not possessions, people like Bob Ewell, he sees as trash, because of the way he abuses his children and the way he abuses the law. So it is clear why Tom is even respected by Atticus, because he is polite and would never harm another human being unless in the defence of someone. So, in Atticus’ point of view, sentencing Tom Robinson as guilty and to receive the capital punishment, would be similar to killing a mockingbird, something he believes, is a sin.

Inflation and Government Economic Policies Essay

Inflation is described as the process by which prices are continuously rising or the value of money continuously decreases (Consumer Price Index Frequently Asked Questions, 2013). As the definition explains, this is not something that would be desirable for the government or its citizens. For example, Germany during the 1920’s experienced a period of hyperinflation. Germans literally had to carry wheel barrels of money to buy groceries. The price of a loaf of bread rose from around 200 Marks to over 200,000,000,000 Marks. Inflation is measured in several ways including Consumer Price Index, Producer Price Index, Employment Cost Index, Gross Domestic Product Deflator, and several other methods (Consumer Price Index Frequently Asked Questions, 2013). Inflation can be caused when the demand of goods and services cannot be met. Since demand cannot be fulfilled, manufacturers can increase the price of goods, thus causing inflation. Inflation can also be caused when there is too much money in circulation. Money can lose its value if everyone has too much of it. In order to try to control inflation, the government can regulate fiscal policies. Employees’ wages can play a big role in inflation. If everyone is making a lot of money, then prices can increase. Lower incomes actually help governments avoid inflation. Another method of regulating/manipulating inflation is by controlling aggregate demand, the number of goods and services requested at the given price point. Aggregate demand can be altered by either imposing taxes or decreasing and restricting government spending. According to BLS.gov, CPI, or Consumer Price Index, is the means by which we measure change in prices urban consumers pay for goods and services in the market basket. This measures what consumers pay on a daily basis for goods and services. Since 2000, CPI has been increasing. CPI can change due to shifts in population or buying habits of consumers. If the economy is up, people will most likely spend more money, and inversely if the economy is  down, consumers will spend less. New trends in technology or even fads can also change CPI. If consumers are influenced by media on alternatives to goods and services that buy and use, this too causes changes in CPI. CPI directly impacts the economy because it is used to determine the amount of government assisted people can be given such as Medicaid benefits and Social Security Benefits. The graph below shows the changes over time since January 2000 to January 2014 (Consumer Price Index – Chained Consumer Price Index, 2014). CPI from January 2000-January 2014 PPI, or Producer Price Index, measures the changed by which producers sell their products (Producer Price Indexes, n.d.). This measures inflation at the beginning stages, ground level, from the manufacturers’ standpoint. Since 2000, PPI like CPI has also increased. Both of these measurements go hand in hand, as the price the manufacturers’/producers charge for their goods and services increases, the amount consumers are paying for these said items also increases. The difference between the two however can include taxes imposed on both producers and/or consumers alike. PPI can be used to determine at what point prices need to escalate. The following graph shows changes in PPI since 2000 (Producer Price Index-Commodities, 2014). PPI from the Year 2000 to the Year 2014 Consumer Expenditure Survey, CE, is defined by BLS.gov as the â€Å"program consists of two surveys, the Quarterly Interview Survey and the Diary Survey, that provide information on the buying habits of American consumers, including data on their expenditures, income, and consumer unit (families and single consumers) characteristics. The survey data are collected for the Bureau of Labor Statistics by the U.S. Census Bureau†. CE has also been increasing since 2000 to present day. CE is pivotal to government fiscal policies because it is the only measurements that shows us not only the amount of money consumers earn and spend, but also consumers spending habits  and trends that we observe. CE is used by policymakers to study the effects of their policies on economic groups and by the Census Bureau to determine Supplemental Poverty Measurements, Like CPI, new technology greatly impacts CE. In the 1980’s, spending on computers and hardware were not as prominent as they are now. According to BLS.gov, changes in internet services and cellphones were also not as prominent in the 1980’s (The Consumer Expenditure Survey—30 Years as a Continuous Survey, 2010). Increases in income and the amount of money consumers spend change CE. The graph below shows these changes (Consumer Expenditure Survey, 2014). Consumer Expenditure Survey 2000-2012 Throughout the last fourteen years, the different units of measurement use to determine inflation have all increased. As the standard and cost of living increases, and as minimum wage continues to increase, all of these units will also increase. This has helped to prevent inflation and hyperinflation. If the prices of goods increase while the income people are bringing in stays the same, this would lead to inflation. As income decreased in 2008-2009, the CPI, PPI, and CE also decreased. The more money we are circulating, the more producers’ will be able to increase the price of goods and services, and the more consumers are going to pay for them. This cycle will continue to grow exponentially. As I stated earlier, there are different methods and fiscal policies governments can implement to avoid inflation. Like Keynesian economics, some of which are based around limiting and controlling government spending. References Consumer Expenditure Survey. Retrieved August 20, 2014 from http://www.bls.gov/cex/ Consumer Expenditure Survey. Retrieved August 20, 2014 from http://data.bls.gov/pdq/SurveyOutputServlet The Consumer Expenditure Survey—30 Years as a Continuous Survey. Retrieved August 20, 2014 from http://www.bls.gov/cex/ceturnsthirty.htm Consumer Price Index – Chained Consumer Price Index. (August 19, 2014). Retrieved August 19, 2014 from http://data.bls.gov/pdq/SurveyOutputServlet Consumer Price Index Frequently Asked Questions. (August 15, 2013). Retrieved August 19, 2014, from http://www.bls.gov/cpi/cpifaq.htm#Question_1 Producer Price Index-Commodities. (August 19, 2014). Retrieved August 19, 2014 from http://data.bls.gov/pdq/SurveyOutputServlet Producer Price Indexes. Retrieved August 19, 2014 from http://www.bls.gov/ppi/

Democracy In Queensland Essay

Democracy is a form of government wherein the regime that would be formed or was formed in a certain nation is based on vox populi (â€Å"voice of the people†) and or the rule of the majority. Furthermore, in this type of government, the consent of the governed is still based on the majority with an assumption of a free and fair election conducted, on the goal or objective of protecting for the political minorities, fair and just treatment or execution of the law and basic human rights, and political pluralism (Camp, 1841). We can say that the people or individuals electing the government and its government officials, has the power to alter, accept or reject some decisions made by the elected rulers. In the modern-day world of political views, beliefs and principles, the definition of democracy seems vague and for others, it is ambiguous having different meanings depending on the nation having this type of government (Dunn, 2005). The article published Last February 1, 2007 in the editorial section of The New Zealand Herald, which was entitled â€Å"Sometimes, democracy can stink,† talks about Queensland regarding public consultations, government rule and in general, democracy. It was said that Queensland is under a critical situation of having the worst condition when it comes to water shortage during the summer. So the government of Queensland asked the opinion of the majority about a proposed use of recycled water. Since Queensland is a nation under a democratic government, as much we could say that Australians (in Queensland) live in democracy, having a political system wherein they have the power to vote for or choose through their ballots their government and government representatives, therefore, it was a proper action for them to consult the majority first. The problem was that the state premiere announced the cancellation of the said referendum. The people of Queensland or the majority would have to drink or use the recycled water whether they like it or not. Democracy in this aspect was bypassed, but if you would look at the problem or the crisis which Queensland would have to suffer in the future, the decision of the state was just and necessary. The author of the article carefully looks at some instances wherein democracy in a nation sometimes becomes a problem. The author may not be a government official, but it seems that he or she has good political and social background and knowledge. He or she is able to show that with or without democracy, the people of Queensland and its government officials would have to do their own parts and that they have the responsibility in taking steps for the development or progress of their nation. The author sees the action taken by the state or the government officials regarding the issue was just and shows that the ruling class has the capacity for good governance. The action which they took might not have been a democratic one, but it was a lesson regarding a good government. Democracy, lying on the principles such as the sovereignty of the people, government based upon consent of the governed, majority rule, minority rights, guarantee of basic human rights, and the others, lies on a divine fact that within its hearts, is freedom (Thayer, 1919). This freedom is possessed by the individuals, either the rulers or the individuals ruled. This freedom, that they posses should be enough to create ways or implementations that would benefit the majority. I think that democracy is not truly bypassed even without the consent of the majority as long as the rule or law implemented benefits the majority most, and does not cause harm of any form or in any way. In the case of the implementation of the use of recycled water in Queensland, it was a right decision, and that it does not harm the majority but rather help them survive longer. Individuals who are very attached to the â€Å"definition† of democracy or those who are lovers of democracy would see this act of the state of Queensland as preposterous. They would argue that the majority was neglected and that due process was not done. But this is not the case. The government and the government officials of Queensland’s decided or implemented the use of recycled water because they considered and thought of the majority and it was just a fair decision. It does not matter whether the referendum results was a â€Å"yes† or a â€Å"no† from the majority. Through public consultations or the referendum, the government could receive a majority of â€Å"no† or a majority disagreeing with the use of recycled water, but later on as the water crisis worsens, the state would implement it, thus, leading to an inconsistency in the government, decreasing the hope or trust given to the state by its people. Thus, the cancellation of the referendum was justified. If the government of Queensland did not implement the use of recycled water, then Queensland would be approaching its end. It is a situation wherein the people of Queensland do not have a choice. They have the option of drinking or not drinking the recycled water because of certain reasons such as unpalatability, but ultimately, they have to or else, they would die of thirst. The problem was addressed by the government as to ensure the needs and the safety of the majority living in Queensland. The referendum, through the questionnaires, public polls, public interviews and other statistical measures may not be enough to ensure a firm or the best decision that has the most benefit. The government of Queensland, more specifically its officials, had taken great depth in studying the best solution to address both the problems being undertaken and the inhabitants of Queensland. Furthermore, in their government website, the recycled water which was to be given to the majority is wastewater which highly purified and treated to an extent that it reaches the highest quality or standard. They even promote safe, environmentally sustainable, cheap source and enough water supplies through purified recycled water. The recycled water also passes a strict series of processing and guidelines to ensure the safety of the majority and for the progress of the society. The article regarding the democracy in Queensland, ethically shows that sometimes, democracy may not be fulfilled or followed strictly or thoroughly. Socially speaking, the government of Queensland performs its duties under due process for the protection of the political minorities and for the benefit or sake of the majority. A good government has a central role of performing plays or actions that would ensure a progress or development of the country or nation, economically or socially (Slinn, 2004). Furthermore, the referendum might have been cancelled or what the majority has to say might not have been legally considered in the actions that the state has taken, but it does not mean that democracy in Queensland is dead and the majority no longer has the power. It only means that the actions taken shows that the majority was in power and that the action taken was for their benefit, and not for the benefit of the ruling body. In addition to this, the government or the state was also at risk regarding the cancellation of the referendum, because they could be perceived to violate the democracy in Queensland, when in fact, they do not. The democratic law of giving benefit to the majority is the sovereign entity in this issue (Oswald, 1986). The author does not mislead people in stating that democracy sometimes stink. He or she does not generalize democracy to be a burden and he or she does not imply that democracy is a weak type of government. From the title of the article, he or she initially states â€Å"sometimes†, implying that it democracy is not always that bad, but in this case regarding the crisis in Queensland, it was.

Channels of Distribution and Logistics

Chapter 6 Channels of distribution and logistics LEARNING OBJECTIVES By the end of this chapter you will: n n n n omprehend key elements and decisions in distribution channel design be able to evaluate different configurations of channel structure be familiar with recent trends and developments in channels of distribution appreciate the importance of managing the physical flows of products, services and information into, through, and out of the organization to its customers n grasp the meaning and scope of physical distribution and logistics management n be aware of developments and trends in production and manufacturing, particularly the growth of ‘lean manufacturing’ and implications for logistics n recognize the role of Information Technology and marketing in logistics Channels of distribution and logistics 191 INTRODUCTIONThis chapter deals with the ‘place’ element of marketing strategy (i. e. ‘placement’ of goods and services from their res pective providers into the hands of customers). Before we discuss the structure of marketing channels, followed by logistics, it is useful that we look at their emergence and the functions that channels perform. THE CONSUMER WANTS CYCLE The word ‘channel’ has its origins in the word for canal, which for marketing can be interpreted as a route taken by products as they flow from production to points of intermediate and final use. Marketing is a key factor in a continuous cycle that begins and ends with consumer wants. It is the role of he marketer to interpret consumer wants and combine them with empirical market data such as location of consumers, their numbers and preferences, to establish the starting point for manufacture. On completion of manufacture, the finished product is moved to the consumer and the cycle is complete when he or she obtains satisfaction resulting from product ownership. THE PRODUCER–USER GAP Despite the growth of direct marketing (to be d iscussed in Chapter 10) in today’s complex economy, most producers still do not sell directly to final users. Between them and consumers lie marketing intermediaries. A distribution channel bridges the gap between user and producer, and so plays an integral role in the operation of the marketing concept. Relationships among channel members are influenced by the structure of the channel.Marketing channels can be described as sets of interdependent organizations involved in the process of making a product or service available for use or consumption. DEMAND STIMULUS In addition to marketing channels satisfying demand by supplying goods and services in the right location, at the correct quantity and price, they should stimulate demand through promotional activities of retailers, manufacturers and wholesalers. In this way, a marketing channel should be 192 Channels of distribution and logistics viewed not just as a demand satisfier, but as an orchestrated network that creates valu e for consumers through the generation of form, possession, time and place utilities.We start by examining ways in which distribution systems are designed and how channel policy is determined, depending on the degree of market exposure sought by a company. DISTRIBUTION SYSTEM DESIGN The starting point for marketing channel design is the end consumer. Although an understanding of consumer purchasing patterns is essential, there are other factors that influence channel organization: n n n n n There may be a restriction in choice of outlets available to suppliers, e. g. retail outlets may already have been secured by established manufacturers. Channel design will be influenced by the number, size and geographic concentration of consumers.If customers are few in number, but large and geographically concentrated, it may be that direct channels will be suitable. If customers are dispersed, the mechanics of direct channels become increasingly difficult and there will be a need for a large number of intermediaries. Product characteristics affect channel design. Industrial goods manufacturers tend to use direct channels, but there are other factors that influence the decision. Perishable goods, for example, need to be turned over quickly so direct methods are often applied. Non-perishable, non-bulky goods can be handled via indirect channels. Some products are more suited to indirect channels because of environmental characteristics.For example, in some countries shopping is seen very much as being a leisure activity especially for items like clothing and furniture, so much so that companies such as the Swedish company IKEA have made this a central part of their business model. Some organizations have limited discretion over marketing channel choice owing to economic conditions and legal restrictions. In certain of the Eastern European and Baltic countries such as Estonia, Latvia and Uzbekistan there is still restricted choice in terms of the range and scope of retail outlets for marketers. Any channel decision will have long-term implications for the company, e. g. price will be affected depending on the number of levels between the manufacturer and the end user.A decision to change channels is likely be long term so it is important that existing channel structures are constantly reviewed to exploit opportunities. STRATEGIC CHANNEL CHOICES An important consideration when formulating channel policy is the degree of market exposure sought by the company. Choices available include: Channels of distribution and logistics 193 n n n Intensive distribution where products are placed in as many outlets as possible. This is most common when customers purchase goods frequently, e. g. household goods such as detergents or toothpaste. Wide exposure gives customers many opportunities to buy and the image of the outlet is not important.The aim is to achieve maximum coverage. Selective distribution where products are placed in a more limited number of outlets i n defined geographic areas. Instead of widespread exposure, selective distribution seeks to show products in the most promising or profitable outlets, e. g. high-end ‘designer’ clothes. Exclusive distribution where products are placed in one outlet in a specific area. This brings about a stronger partnership between seller and re-seller and results in strong bonds of loyalty. Part of the agreement usually requires the dealer not to carry competing lines, and the result is a more aggressive selling effort by the distributor of the company’s products, e. g. n exclusive franchise to sell a vehicle brand in a specific geographical area, in return for which the franchisee agrees to supply an appropriate after sales service back-up. We can see that there are several key decisions to make when determining the company’s distribution system. Its importance is underlined by the fact that the choice of distribution channel has an effect on all elements of the marketi ng mix and these are long term. TYPES AND CLASSIFICATION OF CHANNELS Marketing channels can be characterized according to the number of channel levels. Each institution that works to bring the product to the point of consumption is included. The number of intermediaries involved in channel operation determines on how many levels it operates.There are four main types of channel level in consumer markets as shown in Figure 6. 1. The first three levels (zero, one and two) are self explanatory. The three level channel includes a ‘jobber’, or merchant Zero level channel manufacturer Consumer One level channel manufacturer Retailer Consumer Two level channel manufacturer Wholesaler Retailer Consumer Three level channel manufacturer FIGURE 6. 1 Wholesaler Jobber Retailer Consumer Channel relationships 194 Channels of distribution and logistics wholesaler who intervenes between the wholesaler and retailer. It is the jobber’s role to buy from wholesalers and sell to small er retailers, who are not usually serviced by larger wholesalers.Within each channel, intermediaries are connected by three types of flow: 1 Physical flow describes movement of goods from raw material that is processed in various stages of manufacture until it reaches the final consumer. In the case of a towel manufacturer raw material is cotton yarn which flows from the grower via transporters to the manufacturer’s warehouses and plants. Title flow is the passage of ownership from one channel institution to another; when manufacturing towels, title to raw materials passes from the supplier to the manufacturer. Ownership of finished towels passes from manufacturer to the wholesaler or retailer and then to the final consumer. Information flow involves the directed flow of influence from activities such as advertising, personal selling, sales promotion and publicity from one member to other members in the system.Manufacturers of towels direct promotion, and information flows to retailers or wholesalers, known as trade promotion. This type of activity may also be directed to end consumers, i. e. ‘end user’ promotion. 2 3 Conventional marketing channels comprise autonomous business units, each performing a defined set of marketing functions. Co-ordination among channel members is through the bargaining process. Membership of the channel is relatively easy, loyalty is low and this type of network tends to be unstable. Members rarely co-operate with each member working independently of others. Decision makers are more concerned with cost and investment relationships at a single stage of the marketing process and tend to be committed to established working practices.Most food grocery products in the European Union are marketed through conventional marketing channels; independent food and grocery producers are responsible for growing, rearing and manufacturing products and brands. These are sold through a series of wholesalers and retailers such as Sainsbury’s, Aldi, Lidl, Tesco or Carrefour each operating as independent businesses in the chain and selling to their own customers. Vertical marketing systems are in contrast to conventional channels where members co-ordinate activities between different levels of the channel to reach a desired target market. The essential feature is that participants acknowledge and desire interdependence, and view it as being in their best longterm interests.For the channel to function as a vertical marketing system, one of the member firms must be acknowledged as the leader; typically the dominant firm, which can be expected to take a significant risk position and usually has the greatest relative power within the channel. An example of a vertical marketing system is that of franchising. The franchiser, usually on the basis of having a powerful brand or perhaps a patent/copyright, for a fee, allows franchisees to produce or distribute the product or service. The franchiser effectively c ontrols the channel, including aspects such as product ingredients, advertising and marketing, pricing, etc. through formal and legally enforceable agreements. Franchising is an example of what are termed contractual vertical marketing systems which we consider again shortly.Corporate vertical marketing is when a company owns two or more traditional levels of the channel. In many economies corporate vertical channels have arisen as a result of a desire for growth on the part of companies through vertical integration. Two types of vertical integration are possible with respect Channels of distribution and logistics 195 to the direction within which the vertical integration moves a company in the supply chain: when a manufacturer buys, say, a retail chain, this is referred to as forward integration with respect to the chain. Backward integration is moving upstream in the supply chain, e. g. when a retailer invests in manufacturing or a manufacturer invests in a raw material source.Alt hough the end result of such movements is a corporate vertical marketing channel, often the stimulus to such movement is less to do with channel economies and efficiencies, and more with control over access to supply or demand, entry into a profitable business or overall scale and operating economies. Much vertical integration activity which took place during the 1990s in many economies resulted in lower overall profitability levels, and in some cases, the demise of companies involved, as companies overextended themselves and/or moved into areas where they had little expertise. Because of this, many companies have now turned their attention towards contractual systems for achieving growth and more control through the vertical marketing system.Many of the large oil companies are examples of corporate vertical marketing. They prospect for oil, extract it, process it, distribute and retail it through their petrol stations. Other companies operate partial corporate vertical marketing sy stems in that they integrate only one way. Zara (the clothing retailer) is integrated vertically backward with manufacturing facilities. Firestone (the tyre manufacturer) on the other hand, is vertically integrated forward owning its own tyre retailers. Many companies formalize their obligations within channel networks by employing legitimate power as a means of control achieved by using contractual agreements.Nearly all transactions between businesses are covered by some form of contract, and as such the contractual agreement determines the marketing roles of each party within the contract. Indeed, the locus of authority usually lies with individual members. The most common form of contractual agreement are franchises and voluntary and co-operative groups. Franchises are where the parent company grants an individual person or relatively small company the right or privilege to do business in a prescribed manner over a certain time period in a specified place. The parent company is r eferred to as the franchiser (or franchisor) and may occupy any position in the channel network. The franchise retailer is termed the franchisee.There are four basic types of franchise system: n n n n Manufacturer/retailer franchise, e. g. service stations where most of the garage petrol stations such as Shell and Esso are franchisees of the large oil exploration and refining companies. Manufacturer/wholesaler franchise: e. g. Coca-Cola sell drinks they manufacture to franchised wholesalers, who in turn bottle and distribute soft drinks to retailers. This type of arrangement is common in the food and drinks markets with many of the large companies franchising part of their manufacturing and or wholesaling activities to others. The wholesaler/retailer franchise. Many retail chains are franchisees of large wholesalers.These wholesalers saw the value of securing a measure of control, and of course a share of the retail profits, from marketing their products and brands. The most notable example is ‘Spar’ which advertises itself as ‘Spar, your 8. 00 till late shop’, and of course all retail members must abide by this promise. The service/sponsor retailer franchise e. g. McDonald’s, Kentucky Fried Chicken, Subway, Car Rental companies like Avis and Hertz and services like DynoRod and Prontaprint. This is the best known and certainly most ubiquitous of franchising arrangements and it has enabled many organizations to rapidly expand their global operations. 196 Channels of distribution and logistics There are different types of franchise arrangement, e. g.McDonald’s insists that franchisees purchase from official suppliers; they provide building and design specifications, help locate finance for franchisees and impose quality standards to which each unit must adhere in order to hold its franchise. Rigorous inspection through ‘secret shoppers’ (explained in Chapter 12) ensures franchise ‘rules’ are being obeyed. Franchises share a set of common features and operating procedures: 1 2 3 4 A franchise essentially sells a nationally, or internationally, recognized trade name, process, or business format to the franchisee. The franchiser normally offers expert advice e. g. location selection, capitalization, operation and marketing. Most franchises operate a central purchasing system at national or international level to enable cost savings to be made at the individual franchise level.The franchise is subject to a contract binding both parties that normally requires the franchisee to pay a franchise fee and royalty fees to the franchiser, but the franchisee owns the business as opposed to being employed. The franchiser often provides initial and continuous training to the franchisee. 5 Contractual vertical marketing systems like franchising have been one of the fastest growing areas of marketing and distribution. Substantial advantages derive from the franchising system. From a system t hat essentially involves two independent parties voluntarily agreeing to contract with each other, advantages accrue to both the franchisee and franchiser. Advantages to the franchisee are: n n n n n n The franchisee gains the benefit of being able to sell a well-known product or service which has been market tested and known to work.The franchisee enjoys access to the knowledge, experience, reputation and image of the franchiser. Because of this the franchisee is able to enter a business much more easily than setting up from scratch. The learning curve is shortened, expensive mistakes can be avoided, and there is less chance of business failure. Although the franchisee has the backing of what is often the large organization of the franchiser, the franchisee is still essentially an independent business with all that this implies for motivation to succeed. The franchisee is often helped by national or international advertising and promotion by the franchiser which would be beyond the means of a small independent business.The franchisee enjoys the use of the franchiser’s trademark, continuous research and development and market information. The franchiser will normally provide a system of management controls such as accountancy, sales and stock control procedures. Advantages to the franchiser are: n Finding and recruiting a network of franchisees enables rapid growth as wider distribution can be achieved with less capital. Channels of distribution and logistics 197 n n n n The individual franchisee is more motivated than a hired manager might be. The franchiser secures captive outlets for products or services, especially in the case of trade name franchising and private labels. Franchise and royalty fees provide a regular stream of income for the franchiser.The terms of the franchise contract normally give the franchiser substantial control over how the franchise is operated and normally the franchiser can terminate a contract should the relationship turn out to be unsatisfactory. The costs of such terminations are likely to be less than if the franchiser was operating a corporate owned facility with staff on the payroll. Normally, terms and restrictions on location and sale of the business by the franchisee ensure that the franchiser is able to maintain territorial exclusivity for its franchisees. There are disadvantages, but the franchise relationship combines the strengths of both small and large scale businesses. The franchisee is the small business person who is able to respond to local market conditions and offer personal services to customers.The franchiser passes on economies of scale in national advertising and bulk purchasing. For a franchise to be successful both parties need to work towards a common goal and avoid conflicts which requires frequent and open communication between partners if the system is to meet changing market conditions while maintaining its integrity. What constitutes the main disadvantages of franchis ing depends from whose perspective we are looking; the franchisee or the franchiser. The main disadvantages of franchising from each perspective are: Disadvantages to franchiser: n The franchiser loses some control over the provision and marketing of the brand. Poor service on the part of the franchisee can result in problems for brand image. Ideas and techniques can be copied even if seemingly well protected by patents and copyright arrangements. n Some proportion of profit has to be foregone. n There may be less commitment and enthusiasm from the franchisee. n Often franchisees lack business skills or experience. Disadvantages to the franchisee: n lack of support from franchiser; n franchiser may go out of business; n lack of flexibility/scope to use initiative; n close control from franchiser. Franchising is not solely confined to consumer products like fast food. It is used for a wide range of products and services in both consumer and industrial markets. Voluntary and co-operat ive groups emerged in the 1930s as a response to competition from chain stores.The scope of co-operative effort has expanded from concentrated buying power to the development of programmes involving centralized consumer advertising and promotion, store location and layout, financing, accounting and a package of support services. 198 Channels of distribution and logistics Generally, wholesale sponsored voluntary groups have been more effective competitors than retail sponsored co-operative groups. Primarily this is because of the difference in channel organization between the two. In the former, a wholesaler can provide strong leadership, because it represents the locus of power within the voluntary system and this is normally supported by a brand name like ‘Spar’.In the latter, power is diffused throughout the retail membership and role specification and allocation of resources are more difficult to accomplish. The principal purpose here is in bulk purchasing. In volunt ary groups, retail members have relinquished some of their autonomy by making themselves highly dependent on specific wholesalers for expertise. In retail co-operative chains, individuals retain more autonomy and this tends to depend much less strongly on the supply unit for assistance and direction. This type of organization is not to be confused with the Co-operative movement that was founded in 1844 by the Rochdale, Lancashire, Society of Equitable Pioneers who were a group of 28 weavers and other workers.As mechanization of the Industrial Revolution pushed more and more skilled workers into poverty, tradesmen banded together to open their own store selling items they could not otherwise afford. Over four months they pooled together ? 28 of capital. They opened their store with a basic selection of dry goods and foodstuffs and quickly moved into higher quality unadulterated produce. They devised the internationally famous Rochdale Principles: 1 2 3 4 5 6 7 open membership; democr atic control (one person, one vote); distribution of surplus in proportion to trade; payment of limited interest on capital; political and religious neutrality; cash trading (no credit); promotion of education.Administered vertical marketing systems (VMS) do not have the formal arrangements of a contractual system or the clarity of power dependence of a corporate system. It is a co-ordinated system of distribution channel organization in which the flow of products from the producer to the end user is controlled by the power and size of one member of the channel system rather than by common ownership or contractual ties. Member organizations acknowledge the existence of dependence and adhere to the leadership of the dominant firm, which may operate at any level in the channel. Large retail organizations like Marks & Spencer typify this system. In administered systems like Marks & Spencer, units can exist with disparate goals, but there is informal collaboration on inclusive goals.Dec ision making occurs by virtue of interaction between channel members in the absence of a formal inclusive structure. However, the locus of authority still remains with individual channel members. As in conventional channels commitment is selforiented and there is a minimum amount of system-wide orientation among the members. As McCammon1 observes: Manufacturing organizations . . . have historically relied on administrative expertise to coordinate reseller marketing efforts. Suppliers with dominant brands have predictably experienced the least difficulty in securing strong trade support, but many manufacturers with Channels of distribution and logistics 199 fringe’ items have been able to elicit reseller co-operation through the use of liberal distribution policies that take the form of attractive discounts, financial assistance, and various types of concessions that protect resellers from one or more of the risks of doing business. An example of a successful administered VMS in is that of the furniture/lifestyle retailer, IKEA who has developed close working relationships with its suppliers. Acting as the channel co-ordinator, IKEA is committed to cost-effective supply and their suppliers benefit from the channel leadership of an effective and marketing-oriented retailer. Administered VMS are one step removed from conventional marketing channels. In an administered system, co-ordination of marketing activities is achieved by the use of programmes developed by one or a limited number of firms.Successful administered systems are conventional channels in which the principles of effective inter-organizational management have been correctly applied. Before we discuss how such marketing channels are co-ordinated, it is important that we discuss their structure. STRUCTURE OF MARKETING CHANNELS The marketing channel has two basic aspects: 1 2 the placement of intermediary types of channel in relation to each other i. e. the order in which they occur; the number of different intermediary levels or stages in the channel i. e. how many different separate types of intermediary are involved, so types of intermediary and number of levels determine the structure of a marketing channel. There are several types of channel structure, dependent on the type of goods.An example of a structure for consumer goods such as food and clothing is shown in Figure 6. 2. This figure is based on three assumptions: 1 2 3 The channel consists of complete organizations. Manufacturers’ agents and selling agents are included with the merchants even though they do not take title to the goods. Physical movement follows exactly the movement of ownership. We must understand the underlying reasons for the emergence of channel structures. Four logical steps can be identified: 1 2 3 4 The efficiency of the process can be increased via an intermediary. Channel intermediaries arise to adjust the discrepancy of assortments through the performance of the sorting processe s.Marketing agencies remain together in channel arrangements to provide the routine of transactions. Channels exist to facilitate deliveries and to avoid inventory stock-outs. 200 Channels of distribution and logistics 1 M 2 M 3 M 4 M 5 M 6 M 7 M 8 M 9 M C W R A R W W A C W W C R W W W C C C R C R C R C R C M = Manufacturer W = Wholesaler A = Agent (sells for manufacturers) R = Retailer C = Consumer FIGURE 6. 2 A typical example of structure for consumer goods Rationale for intermediaries As numbers of transactions increase, the need for intermediaries becomes greater. The marketing channel is a ‘canal’ which contains the physical flow of products.Because of the complex array of intermediaries operating within a channel, which may be involved in one or all aspects of channel function, the channel may also be visualized as a chain-link arrangement where each intermediary unit is effectively a link. Manufacturers are dependent on the effectiveness of their intermediaries if their channels of distribution are to meet their marketing goals. Intermediaries of a channel specialize in more than one function. Their inclusion primarily depends on their superior efficiency in the performance of basic marketing tasks. Such intermediaries, through their experience, specialization, contacts and scale of operation, offer other channel members more than they can achieve on their own. However, this type of specialization leads to some important behavioural concepts. Position and role Each channel member chooses a position or location in the channel. Role’ refers to the functions and degree of performance expected of the firm filling a position. Channel intermediaries perform the distribution function at a lower unit cost than the manufacturer who is the intermediary most distanced from the consumer, and they balance the production efficiencies of the supplier to the purchasing needs of the customer. Another reason is to break down large volumes into smalle r quantities, termed ‘breaking bulk’, e. g. a furniture retailer places an order for 100 tables, but the individual buys only one. When we consider the selling process, the number of intermediaries can reduce the number of transactions Channels of distribution and logistics 201 ontained within the selling process. See Figure 6. 3. Figure 6. 3 shows that there are four manufacturers and ten retailers who buy goods from each manufacturer. Here the number of contact lines amounts to 40 (i. e. 4 10). If all four manufacturers sell to 10 retailers through one intermediary, the number of contacts is reduced to 14 (i. e. 4 10). The number of contacts increases as the number of intermediaries increases, e. g. when the number of wholesalers is increased to 2, contacts will increase from 14 to 28 (i. e. [4 2] [10 2]). Thus, greater numbers of intermediaries result in diminishing returns per contact. (a) Selling directly ManufacturersRetailers 40 contact lines (b) Selling through one wholesaler Manufacturers Wholesaler Retailers 14 contact lines (c) Selling through two wholesalers Manufacturers Wholesalers Retailers 28 contact lines FIGURE 6. 3 The economics of intermediary systems 202 Channels of distribution and logistics Assortment and sorting In addition to increasing the efficiency of transactions, intermediaries smooth the flow of goods and services by creating what economists refer to as ‘possession’, ‘place’ and ‘time’ utilities. This smoothing requires that intermediaries perform a sorting function to overcome the discrepancy that arises between goods produced by manufacturers and goods demanded by the consumer.In addition, intermediaries bring together a range of similar or related items into a large stock, thus facilitating the buying process. A supermarket will buy in thousands of lines to provide shoppers with choice, and a builders’ merchant will provide everything from sand and gravel to light fitt ings that the builder can use. In this way, intermediaries play an important role in facilitating the flow of products from the manufacturer to the consumer. Routine transactions The cost of distribution can be minimized if transactions are routinized. In effect, through routinization, a sequence of marketing agencies is able to hang together in a channel arrangement or structure.A good example is automatic ordering, whereby the cost of placing orders is reduced when retail inventory levels reach the necessary re-order point. Searching Buyers and sellers are often engaged in similar activities within the marketplace. There is a degree of uncertainty if manufacturers are unsure of customer wants and needs, and consumers are not always sure what they will find. In this respect, marketing channels facilitate the searching process in two ways: 1 2 Wholesale and retail institutions are organized by different product groups; for example, fashion, hardware, grocery. Many products are widel y available from wide ranging locations. FLOWS IN MARKETING CHANNELSWhen we discuss marketing flows, there will be times when the word ‘function’ could be used, but here we refer to marketing ‘flows’ in channels as a better method of describing movement. In this way, we can show that various intermediaries that make up a marketing channel are connected by several distinguishable types of flow, summarized in Figure 6. 4, which depicts eight universal flows. The figure shows that physical possession, ownership and promotion are typically forward flows from producer to consumer. Each of these moves is ‘down’ the channel; a manufacturer promotes the product to a wholesaler, who in turn promotes it to a retailer, and so on. Negotiation, financing and risking flows move in both directions, whereas ordering and payment are backward flows.Financing is the most important of these flows; at any one time, when stocks are being held by one member of the ch annel, financing is in operation. When a wholesaler takes ownership and physical Channels of distribution and logistics 203 Physical possession Ownership Promotion Producers Retailers Negotiation Financing Rising Ordering Payment Wholesalers Customers: household and industrial FIGURE 6. 4 Marketing flows in channels Woolly Thinking Under the auspices of the Confederation of British Wool Textiles (CBWT), groups of British wool textile manufacturers exchange information and ideas. The Confederation is organized into distinct groups in the industry with each group representing a particular stage in the manufacturing and processing of wool.For example, there is a group representing ‘Raw Fibre Producers’, another representing ‘Spinners’, another representing ‘Fabric Manufacturers’ and one representing the interests of ‘Dyers and Finishers’. possession of a portion of the output of a manufacturer, the wholesaler is essentially financing the manufacturer. This notion is apparent if the costs of stock are considered. Stock held in stores as dormant stock is ‘dead money’, but if this is freed via a wholesaler, this ‘dead money’ is available for reinvestment. The furniture industry exemplifies the flow. Traditional furniture retailers operating on a sold-order basis do not participate in the backward financing flow.However, ‘warehouse type’ furniture retailers participate in this flow directly, and receive benefits from manufacturers in the form of lower prices and preferential treatment. This backward flow of financing is not solely associated with stockholding, another example being prepayment for merchandise. The problem is that in the event of any downturn in sales the warehouse type retailer with large sums of money tied up in stock is very vulnerable to cash flow and liquidity problems. To underline this, blaming the downturn in the UK housing market in July 2009, the UKâ₠¬â„¢s second largest carpet retailer, Allied Carpets, called in the receiver. 204Channels of distribution and logistics Forward flow of financing is more common. All terms of sale, with the exception of cash on delivery and prepayment, may be viewed as elements of the forward flow of financing. In addition to these flows there is information flow. Typically, information regarding product attributes is passed ‘down’ the channel, often with the dominant channel member having greater influence on this function. Marketing information is passed ‘back’ up the channels. In addition, information flows horizontally, i. e. with intermediaries operating at the same level, such as fibre manufacturers, communicating for mutual benefit.CHANNEL CO-ORDINATION However well designed a marketing channel may be it is important that it is organized and coordinated, otherwise activities and flows will not operate effectively, and the full potential of the system will not be real ized. Emphasis should be placed on understanding behavioural dimensions of inter-organizational relationships, because through such understanding, the manager can organize, manipulate and exploit available resources. The long-term objective of channel management is to achieve, at a reasonable cost, the greatest possible impact at the end user level, so that individual members of the channel can obtain satisfactory returns (e. g. rofits, market share) as compensation for their specific contributions. The behaviour of intermediaries within any given structural arrangement should thus be directed towards achieving high yield performance. Once the marketing management of an organization isolates the market targets to attack, and the products and services which it must supply in order to satisfy needs and wants in those various segments, the question of how best to make products and services available for consumption arises. Figure 6. 5 identifies four major steps that represent the co-o rdination process. The first step is to determine the level of service outputs demanded by end users of the commercial channel system.Service outputs that are among the most significant in distribution are, for example, lot size. Some companies insist on a minimum order level. Under this limit they will not accept the order. In contrast, often smaller companies are unable or unwilling to supply orders over a certain size. A second type of service output is delivery or waiting time, or how long it takes from order to delivery. A third service output relates to market decentralization or spatial convenience, namely, to where the provider will deliver. For example, some suppliers will only deliver locally whereas at the other extreme some will undertake to deliver anywhere in the world. Finally, there is breadth and depth of product or service assortment.This refers to whether or not the provider is able to supply a full range of products and services or only a selected range, i. e. a ‘one -stop shopping’ facility. The second step involves identifying the marketing tasks that need to be carried out in order to achieve the service outputs, and which channel members have the capability to perform the tasks. Management must then determine whether, through the use of channel control strategies, they will be able to control the behaviour of existing channel members or be compelled to integrate channel flow vertically so the required service outputs are provided to end users. Channels of distribution and logistics 205 Step 1 Determine service output levels required by customersStep 2 Analyse the roles which channel members must perform to assure delivery of the required service outputs Step 3 Use economic and other power bases to motivate channel members to carry out their assigned roles Step 4 Devise mechanisms for dealing with conflicts that occur within the channel FIGURE 6. 5 Stages in the channel co-ordination process For example, if a desired level o f service output is that orders must be fulfilled within five working days then the channel and logistics system must be designed to reach this service level. If intermediaries in the channel are unwilling or unable to meet this service output then alternative channel arrangements must be found.Without effective channel management and control there is no guarantee that the desired service outcomes will be achieved, so a major issue in channel management relates to where, and to what extent, marketing flow participation should be assumed to generate the desired service outputs; e. g. if a car buyer needs finance, the manufacturer, the retailer or an outside intermediary should provide it, but lending services must be readily available if the consumer is going to feel comfortable in considering a specific purchase that requires finance. In a situation where no channel intermediary is willing to accept the risk of financing, the initial supplier may have to assume this, i. e. it would prefer to specialize in those flows that it can perform at a comparative advantage.The third step in the co-ordinative process is to determine which strategies should be used to achieve the desired results, irrespective of whether management decides to invest in integrating functions or whether it deals with independent companies. Essentially this is an issue of where and how ‘power’ is applied in the channel. Power is the ability to get somebody to do a task. In the context of a marketing channel it can be defined in terms of how one channel member can exert influence on another channel member. For example, due to their size and purchasing power, many retail multiples in the UK like Marks & Spencer are able to exercise substantial power over their suppliers.Power is the mechanism by which congruent and effective roles become specified, roles become realigned when necessary, and appropriate role performance is enforced. There are several bases of power, which include re ward, coercion and expertise. 206 Channels of distribution and logistics The fourth step involves setting up mechanisms to deal with conflict issues that may arise so that the channel will continue to provide the desired service outputs even if channel members disagree. Very often channel members perform unique roles. Thus, manufacturers specialize in production and national promotions, while retailers specialize in merchandising, distribution and promotion at a local level. This specialization means that channel members become reliant on each other to achieve objectives.There has to be co-operation between channel members, as without it, the task will not be completed. Such co-operation does not always come easy and needs to be cultivated. CHANNEL CONFLICT There is a danger that there will be conflicts of interest and distribution channels will exhibit levels of conflict. For example, suppliers may want to deliver weekly to a retailer, but the retailer wants to hold less stock, so may want daily deliveries. Ideally, channel members should attempt to coordinate their objectives, plans and activities with other intermediaries such that performance of the total distribution system to which they belong is enhanced.Evidence supports the view that such integrated activity throughout the length of the marketing channel is rare and channel participants are not too concerned with transactions that occur between each of the various channel links. Channel intermediaries are more concerned about dealings between channel members immediately adjacent to themselves, from whom they buy, and to whom they sell. Channel intermediaries do not function as component members of a distribution system, but operate independently, making decisions concerning their own methods of operation, functions performed and clients served as well as deciding their own objectives, policies and programmes.Therefore, a marketing channel should be a set of interlocking and mutually dependent elements and it is in the interests of all channel members for there to be a substantial degree of co-operation, but an almost inevitable feature is potential conflict between members which should be taken into account when making channel arrangements. It is possible that healthy competition can lead to conflict and management should seek ways to reduce this conflict. Conflict in distribution channels can occur in different forms as follows: 1 2 Horizontal conflict – is related to competition among similar types of intermediaries at the same level in the channel – e. g. two household textile stores in competition with each another.Intertype conflict – refers to competition among different types of intermediaries at the same level in the channel. This kind of competition has intensified since the advent of ‘scrambled merchandising’ by retailers (where retailers add new product lines that are unrelated to their normal lines of business) e. g. supermarkets hav e added homewares and clothing to their product lines, offering consumers a wider product range and attaining higher margins. Intertype conflict is significant as it reflects a way in which industries remain efficient and respond to changing market conditions. Vertical conflict – refers to competition among different levels in a channel.Such problems can be damaging to existing co-operative relationships e. g. in recent years some of the major car producers have been in conflict with their distributors over matters like pricing and discount policies, stockholding levels and exclusivity agreements. 3 Channels of distribution and logistics 207 Stress and conflict can be in a dormant state; times of change cause existing stress to peak, leading to hostility among channel members. Some conflict is inevitable in channels and may even be positive in that it can prompt needed changes. The earlier example regarding retailers selling manufacturers’ brands at lower prices than m anufacturers wish is an example of vertical conflict.Selling of brands like Levis and Calvin Klein at prices lower than those recommended by manufacturers has given rise to vertical conflict in the channel. Other examples of this type of conflict in the UK recently have been the selling of discounted books and discounted pharmaceutical products by the large retail supermarket groups. Goal incompatibility Channel members appear to share a common goal – maximizing the efficiency and effectiveness of the total system. However, each firm exists as a separate legal entity, each with its own employees, owners and other interested parties who help shape its goals and strategies. Some firms’ goals may be incompatible with the aims and objectives of other channel members.This incompatibility can be a primary cause of stress which will ultimately result in conflict. The distribution of channel profits is a typical example. Each institution will desire the highest possible profit for the whole channel and the natural tendency will be towards co-operation to achieve maximum profit levels. However, each individual firm can be expected to desire the largest obtainable share of total channel profits. The predictable result is conflict over the allocation process. Even if goals are compatible, there may be disagreements about methods employed: all channel members may agree that increases in volume of a product are desirable, but may disagree on the means employed to accomplish it.Wholesalers may desire more shelf space for better positioning of products in retail stores; retailers may feel that more advertising and promotional effort by the manufacturer would accomplish the objective of an increase in sales. The result is conflict over which method to use. Position, role and domain incongruence In a channel consisting of a manufacturer using only wholesalers who sell to retailers, there will be a realignment of the roles and domains of each party. By serving lar ge retailers direct, positions will be re-specified. Changes in position specification, or poorly defined positions, can precipitate conflict among channel members, so the manufacturer must anticipate and understand the expected behaviour of such members. In situations where consensus does not exist, conflict can be expected.Because each role represents a code of conduct defining the channel member’s expected contribution, adequate performance is critical to maintaining harmony within the channel system. Inadequate performance, or failure to behave in the prescribed manner, frustrates attempts by one firm to predict what the other will do and such frustration is a major cause of channel conflict. Conflict may also arise when there is lack of agreement concerning who is the channel leader (termed the ‘channel captain’). If channel members disagree on the domain of firms in the system, there will be conflict and an inability to achieve goals. If domains overlap, an d two or more firms lay claim to the same functions, products or customers, disagreement might lead to hostility.The conflict between car producers and their distributors just described, in part stems from the issue of 208 Channels of distribution and logistics who controls the channel. In the past it has been the car companies who have been channel captains but market and legislative changes have shifted the balance more towards distributors, giving rise to conflict. Communication breakdown Communication breakdowns may cause conflict in two ways: 1 The failure of one firm to pass on vital information to other channel members. A manufacturer wishing to maintain a competitive advantage may decide not to announce a new product until a national distribution programme has been developed.Retailers, on the other hand, need information about new products as soon as possible to prepare their own strategy for the introductory period. Distortion within the message process is called ‘noi se’ that often arises from confused language nuances. When channel members attach different meanings to language and terminology (e. g. if their roles are unclear and confused) stress results and there is potential for conflict. Speculation surrounding the health of Apple boss Steve Jobs caused problems for the company and its distributors. In January 2009 the annual MacWorld conference normally used to announce new products and developments was cancelled.This caused speculation in the trade about whether or not Jobs would continue. The problem was not so much Jobs’ illness bur rather the rumours about it. In July 2009 it was announced that Jobs was making a good recovery from a liver transplant. 2 Communication breakdowns are common in specialist business areas. Noise arises when functional specialists develop terminology that means little to those outside that business environment. Unclear communication with non-specialists can play a part in developing conflict so t he specialist should ensure that communications have been understood. Differing perceptions of reality Different solutions to mutual problems can lead to confliction behaviour.Even when channel members have a strong desire to co-operate and goal agreement exists, conflict can occur when perceptions of the real facts differ. Bare Bellies Update Dear all, further to my e-mail yesterday, I’ve had clarification that a new system for producing bare belly information will be in place. Please note there will no longer be blank bare belly sheets available in departments. Confused? So was this organization’s staff who received this e-mail. The e-mail was from the organization’s publicity department and was sent to all staff. ‘Bare bellies’ is a term used by printers to denote blank sheets to be printed on. The e-mail related to the production of company promotional material. Channels of distribution and logistics 209Each channel member brings to the relation ship different backgrounds and prejudices; facts are likely to be interpreted according to prior experience. All members may agree that the channel is not functioning as effectively as desired; each channel member may perceive a different reason for this lack of effectiveness. Manufacturers may feel that a retailer’s lack of stock is due to failure to maintain adequate safety stock levels and realistic reorder points. The retailer may feel that inventory policies are realistic and that the problem is caused by the manufacturer’s inability to meet scheduled delivery times. Each party is interpreting the situation based upon experience and natural prejudices associated with its own position and role. Ideological differencesSometimes there may be a fundamental ideological conflict in channels which stems from big business and small business perceptions of management, particularly concerning the appropriate level of sales effort. For example, a manufacturer may be so satis fied with the performance of a wholesaler in a given territory that pressure is exerted on the wholesaler to expand the line of products on offer, whereas the wholesaler may be satisfied with allowing the business to continue to run in its present form. In this way, pressures exerted by the manufacturer will lead to stress and conflict in the relationship. If this is an established channel, it is in the interests of everybody to settle the dispute or misunderstanding quickly.There are several methods of resolving conflict, and it is a task of management to seek ways in which to manage it to avoid it becoming dysfunctional and to harness the energies in conflict situations to produce solutions. Depending on which underlying cause is identified, different strategies can be employed in isolation. Another important factor in the resolution of the conflict will be the weight of power of the channel member seeking to resolve the conflict. Problem solving Adopting superordinate goals is a method that refers to goals that are desired by all members caught up in the conflict. Often such goals cannot be achieved by individual channel members, as concerted efforts of all parties are required.Such disputes become more pronounced when the channel is confronted by an external threat, and conflict only dissipates when alternative channel systems emerge. The threat to existing channel members of new channel arrangements for car retailing in the UK has brought about a reduction in conflict between traditional channel members. Car manufacturers and dealers were challenged by the fact that consumers were increasingly purchasing new cars through a variety of new channels including sourcing them from countries where prices might be lower, the growth of ‘car hypermarkets’ where cars are sourced on the ‘grey market’ and through the Internet.The result has been for existing traditional channel members to adopt superordinate goals and this has resulted in a r eduction of conflict between them in an effort to survive. Permanent conflict resolution requires an integration of the needs of both sides to the dispute so they find a common goal without sacrificing their basic economic and ethical principles. The problem is developing a common goal on which all parties agree. 210 Channels of distribution and logistics A solution exists to alleviate communications noise in distribution channels. A more efficient flow of information and communications in channels permits members to find solutions to their conflict based on common objectives. Channel communication efforts should be designed to decrease or avoid conflict, e. g. sing sales representatives to convey information from wholesalers or retailers implies that the manufacturer is trying to encourage the attainment of both individual and common goals; the function of the sales representative in such cases is that of ‘problem solver’. Persuasion This implies that institutions invo lved draw on their leadership potential. If effective channel management is to be achieved, it is often the case that there will be a need to locate an institution or an agency within the system that is willing to assume this role. Channel leadership is the intentional use of power to affect the behaviour of other channel members and cause them to act in a manner that contributes to the maintenance or achievement of a desired level of performance.Often channel control results from channel leadership and like channel power, the level of control achieved by one firm over others in a channel may be issue specific, e. g. while the manufacturer may have control over pricing, retailers may have control over stock levels. Whether or not control can be exerted depends on the power base of each channel member. By its nature, persuasion involves communication between conflicting parties. Emphasis is on influencing behaviour to resolve conflict; the primary intention is to avoid or reduce conf lict concerned with domain or sphere of influence. Persuasion allows members to reach a consensus resulting in agreement without formal bargaining. Some years ago a well-known company launched its own brand of cola. The new brand was eagerly tocked by many leading grocery supermarkets who were persuaded to make space for the new brand on their shelves. Inevitably this meant less shelf space for existing brands including some of the best known cola brands in the world. As if this loss of shelf space was not bad enough, the world’s leading cola brand claimed bitterly that at first glace the new Virgin cola looked remarkably like their own cola brand. They subsequently asked Virgin to withdraw the new brand in its present form and at the same time asked their supermarket customers not to stock it. Needless to say, there were protracted discussions, but after a little time all parties were persuaded to come to a compromise which avoided costly litigation and loss of face.The new cola was altered slightly in appearance, some of the lost shelf space was restored and the new brand gradually made inroads into the market. Bargaining/negotiations The difference between bargaining and persuasion is that in the bargaining process stress continues to exist in the system long after agreement is reached. In negotiation, no attempt is made to fully satisfy a channel member. Instead, the objective is to reach an ‘accommodation’ to stop conflict among members. Such a compromise may resolve the episode, but not necessarily the fundamental stress over which the conflict erupted. If stress continues, it is likely that some issue will cause conflict again at some later date. Compromise is a means by which bargains can be reached in the channel.Each party gives up something it desires to prevent or end conflict. Often compromise is necessary to reach domain consensus where persuasion and negotiation draw on abilities of parties involved to communicate. Channels o f distribution and logistics 211 Politics Politics refers to resolution of conflict involving new organizations in the agreement-reaching process. Mediation involves a third party, usually to secure settlement of a dispute by persuading the parties to continue negotiation or consider recommendations made by the mediator. Mediation involves understanding the conflicting views of parties in such a way that opportunities are perceived that otherwise may have been missed.The fact that solutions are being offered by a mediator, i. e. somebody external to the dispute, can often lead to a settlement if both parties deem the solutions acceptable. Effective mediation keeps the parties together and clarifies facts so the communication process does not break down. While mediation offers solutions to disputes, channel members are not obliged to accept the solutions. In arbitration, however, the solution suggested by the third party is binding upon the conflicting parties. Arbitration can be com pulsory or voluntary, and when it is the former, parties are required by law to submit their dispute to the third party and be bound by the decision.Voluntary arbitration is a similar process whereby parties are bound by the decision, but the dispute is settled voluntarily. The question of relying on law enforcement to settle disputes in distribution is imprecise as it is doubtful whether solutions enforced by law can be applicable to future channel disputes in different circumstances. In purely domestic channel management, these mechanisms are not greatly used because of the inability to find a neutral third party whose decision will be accepted by everybody involved in the dispute. However, arbitration is a normal and accepted part of international channel management and is part of the contractual agreement between the parties in channel activities.For example, if an exporter feels that an overseas agent has not fulfilled the terms of an agreement between him or herself and the pr incipal, but the two parties cannot agree as to the remedies for this, then normally the terms and conditions for instituting an arbitration process are written into the original contract and will be instituted to resolve the problem. Diplomacy Channel diplomacy is the normal method by which inter-organizational relations are conducted, adjusted and managed by ‘ambassadors’, envoys or other persons operating at the boundaries of member organizations. Normally channel members rely on diplomatic procedures, especially in nonintegrated systems. Channel diplomats should be the ‘eyes and ears’ of the firms they work for, and should report anything that may be of interest. Such ‘diplomats’ are commonplace in distribution channels at executive level.In this way, the diplomat’s power base is such that it is obvious to the parties with whom the diplomat will interact. Effective channel management strategies provide for more rational decision maki ng within the channel. THE DYNAMIC NATURE OF CHANNELS Marketing is characterized by constant change, and there is a need for the marketer to adapt to these changes, making marketing channels subject to change and innovation. Channels represent a 212 Channels of distribution and logistics dynamic area of marketing as they are constantly evolving to meet changing customer and market needs which reflect underpinning wider changes and trends in demography and lifestyles. Marketers must be aware of the changing nature of channels and respond to them.An example of recent developments that are indicative of the innovation and changing nature of this area is the growth of multi-channel systems of direct marketing and Internet marketing which are dealt with in Chapter 10. The growth of multi-channels Companies now use a variety of channel arrangements to reach their target customers. Once, companies tended to use only one type of channel configuration in their marketing; now they use several . The use of multi-channel systems can be for a number of reasons: n n n to increase market coverage by reaching new customers; to reduce costs of selling to certain customers where for example such customers require less service than that provided through the company’s normal channels; to achieve a more customized service to particular customers than would be available through the company’s normal channels.In multi-channel marketing, a company might sell to one group of customers using telephone selling and no intermediaries, while another target group may be marketed to through a network of dealers, since these customers require after-sales service and technical advice. Although there are advantages to be gained through using several different channel configurations to different target customers, multi-channels can give rise to increased costs if not controlled. They can also give rise to problems of conflict between different channel members where several channels a re used, particularly where one type of channel member feels that their contractual rights are being infringed. An example is where the marketer uses a system of ‘appointed’ distributors for the company’s products.In return for being granted ‘exclusive’ distribution rights in a particular g