Internal and external data Essay

The Bowmer and Kirkland human reasources department will collect and use external labour market information for planning in the business. Unemployment statistics : The current labour market figures show that in the east midlands current unemployment is only 4.1%, this means Bowmer and Kirkland may have difficulty finding people to employ as so many already have a job. As the higher the unemployment rate the more people there will be for Bowmer and Kirkland to employ.The unemployment rate of the east midlands is 1% lower than that of the whole UK. In Derbyshire alone the unemployment rates are paticually low and numbers are still falling. Although rates are low, GDP per head still lags behind the UK and European averages, skill levels and productivity in manufacturing are also below average. 31.6% of people working in east midlands have no qualifications compared with 28.9% of England, so when Bowmer and Kirkland need to emply someone it will alot of the time also include the costs of training them up. So in conclusion the unemployment rates in the east midlands could cause a problem when it comes to Bowmer and Kirkland recruiting staff. For a start there are only 4.1% people avaliable to work, and they have got appreciate that not all that 4.1% will have the knowlage and skills recuired to work at Bowmer and Kirkland. This will result in costing Bowmer and Kirkland alot of time and money, mainly on training. One way of getting round the low unemployment rates would be to take staff they already have and train them up for hiarachy positions. Although this will leave another problem of having to find someone to fill their origional position, so they cant win really. Employment and Unemployment in the construction industry : In the last few years turnover has gone up and the ammount of people employed has remained static. The avaliability of contructors in the labour market is a problem to Bowmer and Kirkland as there are not alot of qualified workers out there so most of there employees have the standard ammount of GCSE’s and A-levels. However Bowmer and Kirkland can train people up. The business’ in the local area that Bowmer and Kirkland are compeating for for the same employees are, Thorntons, Denby pottery, Rolls royce, these are the major compaines in this area, but construction companies down to Birmingham also cause competition for workers. Internal information The Bowmer and Kirkland human reasources team will also collect and use Internal staffing information for planning in the business. Labour turnover : Bowmer and Kirkland measure Labour turnover because they believe it is important to know how many people they need in the business. This also allows them to be able to compare their figures to other industrys and see how they match up. From the figures they have 20% of people have left the company this year, the main few reasons people are leaving are to branch out and move on, some are only probation periods and dont have their contract renuied, and some could have been sacked or made redundant. Although saying that some of them sometimes come back to the company depending on why they left. If someone is wanting to leave they have to hand in a 4 week or week notice and have the exit interview. Bowmer and Kirkland do this so they can see if there is a trend in why people are leaving, then they may be able to do something about it. For example †¦ most of the leavers may be from one department, and it may narrow down to the fact they are all finding better paid jobs elsewhere, so then Bowmer and Kirkland can sort out that problem. Bowmer and Kirkland however see this as a good thing as this means they can bring in new people/staff and they will bring in new ideas to the company. Bowmer and Kirkland on average employ 20 – 25 new starters each month, the majority of them have minimum qualifications and 10% are usually apprentices, however Bowmer and Kirkland will train them up. Sickness and Accident rates : Bowmer and Kirkland dont compare their Sickness and Accident rates against the national average. However they compare it internally within the company. They have weekly reports to monitor staff absences and the health and safety department monitor all their staff accidents. Of course if someone is found to be having an unusual ammount of absences they will have to have words with them and see the reason behind this as it would not be good for the company. Age, Skills and Training : Bowmer and Kirkland look at their demographic trends. Within the company 92 % of their employees are male and only 8 % female, this is purly because of the concept of he industry, it is more appealing to the male population. Also new training scemes are being used more in Bowmer and Kirkland now so the older generation is being left behind slightly, for example†¦ Modern apprentaships.

Performance Management in Non-Profit Organizations Essay

Non-Profit organizations are trusted to address some the most challenging issues affecting society: ending violence in inner-city communities, educating disadvantaged children, diminishing health disparities and empowering disfranchised populations to bring about change are just a few of these very difficult tasks non-profits take on. Considering the importance of that work and the pivotal role these organizations play in alleviating the burden of those issues to society, it is fair to say that non-profits are held against high expectations and consequently need to show stellar performance to live up to the magnitude of the scope of the work they were trusted upon. It is also fair to say that their performance will not only affect their bottom lines, but also the welfare of the communities they serve. Public and nonprofit organizations significantly affect, and have great potential to improve, the lives of citizens and communities in such areas as public safety, transportation, parks and recreation, economic development, education, housing, public health, environmental management, space exploration, social services, and more. In each of these areas there is interest, and sometimes very great interest, in ensuring that public and nonprofit organizations perform well and help society to move forward. (Berman, 2005) Looking at nonprofits from that viewpoint and understanding the impact their performance has on society, one would think that these organizations are usually driven by results and have efficient performance management systems in place. The truth is that it is not the case, non-profits are known to be mission-driven and the notion of performance-based management is somewhat new to most of those organizations. Non-profit organizations are of increasing importance in modern economies, not only as providers of goods and services but also as employers (Speckbecker, 2003). Moreover, there seems to be a growing awareness that nonprofits need management just as for-profit organizations do. As Speckbecker says: â€Å"Twenty years ago, management was a dirty word for those involved in nonprofit organizations† (Speckbecker, 2003). It meant business, and nonprofits prided themselves on being free of the taint of commercialism and above such sordid considerations as the bottom line. Now most of them have learned that nonprofits need management even more than business does, precisely because they lack the discipline of the bottom line.† (Speckbecker, 2003). In the business world, market forces serve as feedback mechanisms. Companies that perform well are rewarded by customers and investors; underperformers are penalized. Performance is relatively easy to quantify through quarterly earnings, ROI, customer loyalty scores, and the like. Moreover, such metrics can be calibrated and compared, ensuring that the companies producing the best results will attract capital and talent. Managers are encouraged to invest in the people, systems, and infrastructure needed to continue delivering superior performance. And internal feedback mechanisms, from up-to-the-minute operating data to performance reviews, keep everyone focused on critical activities and goals. In the nonprofit world, missions, not markets, are the primary magnets attracting essential resources, from donors inspired by organizations’ audacious goals; from board members, who not only volunteer their time and expertise but also often serve as major funders; and from employees, who accept modest paychecks to do work they care passionately about. (Bradach, 2005) There are many opportunities for performance improvement in the Non-profit field and there are many organizations that have successfully used performance measurement methods. This paper looks at some areas in which improvement has often been recognized and sought in recent years in order to better serving external stakeholders’ needs, improving organizational effectiveness and using resources efficiently, improving project management, and increasing productivity through people. Modern performance improvements efforts often raise the bar in these areas, and managers are increasingly expected to be familiar with the strategies and standards that they involve. These areas offer important opportunities for increasing performance and productivity. When it comes to performance management in nonprofit, the first issue that comes to play is how to define performance. When dealing with a segment whose products are not tangible, how can one define the effectiveness of that kind of work? At the same time, the expectations being placed on these organizations to show results by their staff members, their boards, and public and private donors are rising. Nonprofit leaders are put in a difficult position where they need to demonstrate accountability and quantify the goals they want to achieve. For that reason, most of them have resorted to a set of commonly used performance measures to ensure they are being much more explicit about the results they intend to deliver and the strategies they’ll apply to achieve them. This paper will discuss some of the performance measures used in the non-profit sector. Performance Measurement Performance measurement is the activity of documenting the activities and accomplishments of programs. (Thomas J. Tierney and Nan Stone, 2005). The performance of a nonprofit can be measured by quantifying outcomes and outputs that have been achieved through the services they deliver. For example, by showing how well students in a certain school district are doing with standard testing scores, reduction in communicable disease rates and how many inmates were connected with housing and jobs after discharge. It is about measuring what programs are really achieving and letting people know how resources are being translated into results. Performance measurement systems provide considerable detail about programs. It can be argued that performance measurement by itself does not constitute performance improvement; it is an information-gathering strategy. However, the purposes to which this information is put are clearly associated with improving performance (Berry, 2003). Coming from the point of view that performance is in the eye of the beholder and again revisiting the issue that nonprofits deal with issues that may not be tangible and are hard to quantify, the first question one can ask is who is watching non-profits to make sure they are doing a good job? Moreover, what qualifies as a good job for an organization such as AIDS Action? A cure for AIDS has not been found yet; does it mean that organization failed? Understanding what performance for nonprofits is may not be as clear cut and straight forward as it is for for-profits. After all, we are not looking at how many pairs of shoes have been sold or how many new branches of a bank have been closed. We are looking at quality of life indicators and those are much harder to measure. The most fundamental decision a nonprofit can make is to define the results it must deliver in order to be successful. That process entails translating the organization’s mission into goals that are simultaneously compelling enough to attract ongoing support from stakeholders and specific enough to inform resource allocations. (Thomas J. Tierney and Nan Stone, 2005) Most traditional management accounting systems are based on financial results and their practical relevance for performance management in for profit organizations is obvious. However, the concept of profit as defined as a way to measure results is not valid for nonprofit organizations. Clearly, this does not exclude that nonprofit organizations generate profits in the sense that they generate a cash surplus. For example, a hospital or a theater may calculate the surplus of specific â€Å"products† (a specific operation or a play at the theater) or the surplus during a particular period. (Speckbacher, 2003). However, the main difference is that even though these non-profits had a surplus, their focus is still their mission. They didn’t make decisions based on how they could make more money; they made decisions based on what was better for their programs. The fundamental difference between profitable and non-profit organizations when it comes to financial decision making is that for the latter the mission is still the focus. The past several decades have seen unprecedented growth in the scope and complexity of relationships between government and nonprofit organizations. These relationships have been more fruitful than many critics had feared and more problematic than many advocates had hoped. In the recent years, governments have increasingly relied on non-profits to address issues on a community-level. Non-profits deal with a wide array of issues and for each of these topics; these particular non-profits are experts on that subject. The government has acknowledged that expertise and also the fact that those organizations are usually community-based and more in tune with the particular needs of those communities or interest groups. As government’s dependence on nonprofits for public services, usually through contracts and grants, has increased, government officials have steadily increased their accountability demands for nonprofits, especially through greater regulation and performance-based contracting (Behn, 2001). Expectations for information and greater transparency in programmatic and financial operations are also on the rise at both the state and federal levels. In addition, many leading associations representing nonprofit organizations have called for greater levels of self-regulation, including better governance procedures (Maryland Association of Nonprofits, 2009; Panel on the Nonprofit Sector, 2007). A very common concept that derived from this relationship between government and nonprofits is performance based contracting. This paper will review that concept and outline a few additional approaches Non-Profits can use to measure performance. Performance Contracting Performance Contracting became very popular in the mid-90s with the â€Å"reinventing government† movement. New public management (NPM) practices generated a spike in the interest level from the government in doing business with non-profits. And due to this increased interest, all the ideas and concepts that concerned improving the performance of public services transcended to the non-profit arena. Moreover, this movement and the related NPM encouraged policy makers to adopt more market-based strategies for addressing public problems, such as contracting with private nonprofit and for-profit agencies (Lynn, 1998). In addition, the welfare reform legislation of 1996 created the Transitional Assistance for Needy Families (TANF) program, replacing the long-standing Aid to Dependent Families and Children (AFDC) program (Berman, 2005). A central component of the new TANF program was performance-based contracts to encourage service providers to place individuals in permanent employment quickly (Berman, 2005). These contracts were also part of a broader strategy embodied by TANF to reduce the role of cash assistance in helping low-income individuals; social services delivered extensively by nonprofit and for-profit agencies through performance contracts were designed to help individuals who might have previously relied on cash assistance to obtain employment and/or learn new skills to prepare themselves for the labor market (Berman, 2005). Non-profit organizations greatly benefited from these new trends in New Public Management which allowed them to conquer a bigger space in the public arena, as they had increased visibility and more access to resources. Under the core principles of that movement, communities had to be empowered to address their own problems and the federal government trusted non-profits to implement high-level projects, as pointed out before. Consequently, governments become increasingly dependent on such organizations to tackle some of the more critical issues in society. And due to the fact these issues, such as welfare, violence prevention and land preservation are of high interest to the government officials’ constituents; accountability came in to play. These performance-based contracts are being executed with tax dollars and the government officials need to be accountable to their voters on how these resources are being allocated and what results those programs are bringing. What it comes down to is that Non-Profits are in charge of executing what elected officials promise their constituents. Therefore, the need to enter contracts with a clear expectation of how the budget will support programs and goals and how those monies will translate into improvements to that community or segment. Non-Profits greatly benefit from this relationship with government. From both the point of view of business development, since their contract revenue has significantly increased with the grants and contracts received from the federal government. And from the point of view of implementing performance management activities, since this new way of conducting business paved the way for the introduction of valuable concepts related to performance management in non-profits. In Summary, new public management brought a new set of ideas and principles that were embraced by nonprofits and changed some of their paradigm with regards to their own definition of success and they relationship with their mission. Performance started to be evaluated by directly connecting program budget to goals and outcomes to understand the impact of those contracts had on addressing the issues at hand. Over time, performance contracting spread to a wide variety of service fields in the United States and elsewhere. New York City, for instance, has restructured hundreds of millions of dollars of contracts with social and health agencies as performance contracts. Some state governments have â€Å"privatized† at least some of their child welfare services by shifting public services provided by state or county staff to performance-based contracts with nonprofits, with the goal of improving the efficiency and effectiveness of child welfare services (Courtney, 2000). The same has been done by the Health Resource Service Administration (HRSA) and Substance Abuse Mental Health Administration (SMAHSA), in the past five years when they increased substantially the funding available to communities to address major public health epidemics, such as HIV and Heroine/Crack use, that the government alone wouldn’t be able to tackle. Due to the magnitude of these contracts and the threat these issues pose to society, the issue of performance has been addressed tirelessly and governments pressured nonprofits to come up with a set of measures to account for their performance and their ability to fulfill the terms of those contracts. The benefits and disadvantages of performance contracts have been extensively discussed in recent years. Within the performance management strategy movement, other strategies have been employed that strive to be more nonprofit-centric. These strategies include benchmarking, logic models, balanced scorecards, and social return on investment (SROI). All of these strategies have been used to measure performance in non-profit organizations in recent years and can illustrate examples of how organizations are applying management concepts to their operations. (Heinrich and Marschke, 2008). The Performance management contracts introduced nonprofits to these concepts and in result they became better able to manage their own performance as a whole, and not only when it relates to these contracts. (Heinrich and Marschke, 2008). All these concepts will be discussed in this paper. Benchmarking Benchmarking involves identifying excellence and using it as a standard by which to measure performance. Benchmarking entails an effort to compare a specific nonprofit organization (or set of agencies) with other comparable organizations. It has its roots in the for-profit management world where companies are often compared on various measures, including profitability. The attraction of benchmarking is that it offers nonprofits a mechanism for them to assay their organizations, including administrative costs, the efficiency of their fund-raising operations, and number of members in comparison with other organizations with similar missions and profiles. Outcome evaluation is also very complicated, so benchmarking offers a strategy for program improvement and greater accountability, even in the absence of specific outcome data that are often lacking for many nonprofit programs (Kara D. Rutowski, Jeffery K. Guiler and Kurt E. Schimmel, 2007). Looking again at the issue that the product delivered by nonprofits may not be so easily measured and quantifiable as services and products in the for-profit industry, it is harder for nonprofits to assess their own performance looking at standard reports. For instance, let’s look at an HIV Testing Program whose goals are to promote HIV testing and raise awareness of risk factors. Hypothetically, let’s consider that such program tested 1000 people during a given year and only 4 were positive. How will they measure their performance based on those numbers? That can be quite difficult to determine if a 4% seropositivity rate is an indicator for success or failure. However, using the benchmarking approach this program can compare itself to how it did as it relates to other programs serving similar populations and obtaining similar results. According to HIVqual (HIVqual.org), an organization that specializes in providing benchmarking for different clinical indicators for HIV treatment, despite seeming low that 4% rate is well above the national average. The National average according to the HIVQual Project is about 1%. In this case an apparent low performance indicator, 4%, turned out to be an excellent outcome. Without access to that kind of information that program manager would not know how well he was doing and whether or not his program was being successful. Undeniably benchmarking tends to be most helpful with easy to obtain information, such as number of administrators, membership levels, and the amount of donations. However, the health care industry utilizes it a little more comprehensively, especially when looking at health outcomes of a particular community and health disparities data. The field of Public Health has also embraced that strategy for community-wide data evaluation, such as rates of violence and STD transmission, and used it to compare how effectively neighborhoods have addressed such problems. Also, the Boston Public Health Commission compares individual program data with city-wide data to determine how well a program is performing in comparison to others. Benchmarking is an attainable way to measure performance, as non-profits are comparing their outcomes to national and local averages they can have a clear idea of where they rank and where they need to improve. However, that approach can only be utilized if such data exists. As mentioned before, in the health care industry this method is widely used and there are plenty of data available on clinical outcomes. Different types of benchmarking may be undertaken, depending upon what the organization hopes to achieve (Rutowski, Guiler & Schimmel, 2007). Industry benchmarking, or functional benchmarking, is the measurement of several aspects of the company’s operations and a comparison of these across an industry. Competitive benchmarking is used to compare an organization with its competitors. Process or generic benchmarking is used to compare similar procedures at different companies. There has been relatively little research exploring benchmarking in nonprofit organizations outside of the healthcare industry (Rutowski, Guiler & Schimmel, 2007). Hopefully, nonprofits will follow the trend set by healthcare and employ this strategy as a performance measurement technique more efficiently in the upcoming years. Balanced Scorecards Another performance management strategy commonly utilized by nonprofits is the balanced scorecard developed by Robert Kaplan in 2002. The balanced scorecard is intended to counter the criticism from within the nonprofit sector that the application of certain types of performance management strategies borrowed from the for-profit sector do not sufficiently account for the social mission and values of many nonprofits (Berman, 2005). Kaplan describes the innovation of the balanced scorecard as follows: â€Å"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation.† (Kaplan, 2002) The balanced scorecard is a strategic-planning tool that seeks to integrate financial, programmatic, operational, and mission-related objectives, so a nonprofit agency can strive to create a more efficient and effective organization while at the same time remaining faithful to its mission. (Berman, 2005). The balanced scorecard does involve a significant investment by a nonprofit organization because of its substantial data requirements and the need for extensive consultation among the different stakeholders of a nonprofit, including the board, staff, clients, community members, and funders. As a result, the balanced scorecard tends to be embraced by larger nonprofit and public organizations eager to drive substantial change in their operations. The balanced scorecard is also particularly worthwhile for organizations that seek to rethink or improve their relationship with their users, such as parents in a family-service agency or patients in the case of a hospital. In this sense, the balanced scorecard reflects the enhanced primacy placed on responsiveness to customers in all types of organizations (Berman, 2005). However, despite its holistic approach to organizational strategy, the balanced scorecard tends to focus on measurable indicators of costs and program utilization and thus is not widely used to consider the citizenship and community-building role of nonprofits although it potentially could be used to address these issues. (Berman, 2005) Also, the measurement of program impact through the balanced scorecard approach remains challenging given the difficulty of obtaining relevant outcome data because of the expense and the long-term effects of many nonprofit programs. (Berman, 2005) Balance score cards are a viable alternative for nonprofit organizations. In this system, one takes a look at various elements affecting performance and not a single isolated measure. Due to the fact that non-profits are very in tune with their mission, and are constantly focusing on trying to allocate their limited resources efficiently in order to achieve their goals, this system works very effectively as it provides these organizations with this bigger-picture view they much need. The balanced scorecard system has a multiple focus on several perspectives, including financial performance, and that will give nonprofits the tools they need to make decisions regarding where moneys will be invested in comparison with performance analysis of different programs. For a nonprofit organization, profit is not a determining goal of strategy; but no margin, no mission. Therefore, they need to be able to put their money where they can see results. The other issue to be considered with this approach is stakeholder involvement. In this case, the balanced scorecard provides a comprehensive framework that will help association directors and managers better define strategies, track performance, and provide data to show their various stakeholder groups how well they are performing in terms of mission value and outcomes. It helps as far as celebrating their successes and selling their message to others. Well-rounded and well-presented results will make those organizations look more appealing and that could potentially attract endowments, additional contracts and positive publicity. Logic Models Another performance management approach that is widely used by nonprofits is a logic model. As a matter of fact, many public and private funders now require nonprofit grant and contract applicants to develop a logic model as part of their grant application. Logic Models have become a standard performance measure for contracts due to the fact that they focus on process and outcomes. Logic models force nonprofits to map the entire â€Å"production process† for their programs, from the initial inputs such as staff and resources to the long term outcomes. For funders, logic models offer an opportunity to hold nonprofits accountable for the implementation of their programs. Thus, funders could sanction a nonprofit that fell short of its intended service deliver model after a contract or grant was awarded (Berman, 2005). For Nonprofits, logic models allow them to select which outcomes they want to achieve, so they can focus their efforts on achieving these particular goals. These goals are not chosen randomly, this consists of a â€Å"logic† process, from a cause-consequence frame of reference; therefore, these goals are very achievable and these organizations are very likely to succeed. Logic models have certainly caught the attention of nonprofits nationwide. Arguably their greatest value is on the â€Å"front-end† of service implementation. Ideally, the process of creating a logic model should engage a broad spectrum of a nonprofit agency’s staff and volunteers in thinking about impact and outcomes (Berman, 2005). This level of involvement helps them refine their strategies and win the support of agency stakeholders. By having everyone on board, these agencies will be more likely to achieve program goals. Logic models as a strategy to drive better outcomes and help funders select the most effective agencies for funding remains quite problematic. Furthermore, logic models tend to focus on programmatic performance and generally do not engage the agency in thinking about governance or citizen–agency relationships. (Berman, 2005) SROI – Social Return on Investment Another performance strategy designed for nonprofits that also take into account their difficulties in evaluating programs and defining success is the Social Return on Investment (SROI). This strategy was pioneered by Jed Emerson and colleagues at the Roberts Foundation in San Francisco who envisioned SROI as a vehicle for assessing the social value of nonprofit programs. Too often, nonprofit programs, especially social service programs, are evaluated quite narrowly and thus may not appear to demonstrate significant value for the community (Berman, 2005). Topics, such as quality of life, positive decision making, civic pride and affinity for diversity, for instance, are very hard to measure. One can measure how many people attended a benefit to raise autism awareness, but how can we measure how the lives of those who attended were impacted by their participation? Bearing that challenge in mind, SROI is designed to overcome this problem through a more inclusive approach to thinking about costs and benefits that consider the savings to society of nonprofit services. For example, a person’s employment because of job training and placement by a nonprofit would produce long-term benefits for society that should be considered when evaluating the impact of a nonprofit program (Tuan, 2008). This type of argument may be a hard one to make. There is the counter-argument whether or not current citizens are paying for current services. There is also the counter-argument that tax dollars should be directly benefiting tax payers, and projects such as school renovations may sound more appealing than investing on something that people will see results in the long run. Similar to other performance management initiatives, SROI focuses on programmatic impact rather than governance (Tuan, 2008). SROI is also quite complicated in practice so its adoption within the nonprofit sector has been quite limited, although the conceptual framework employed in SROI has encouraged funders and nonprofits to approach social impact more inclusively and to be rigorous and data-driven in thinking about costs and benefits. SROI has also spawned other efforts to think broadly about the social value of nonprofits (Tuan, 2008). In times where government and the country in general faces a dreadful budget crises making decisions from where to cut from such an abstract idea may be not the best way to measure performance as it relates to results from financial investments. This approach is probably the one that makes more sense from a long-term perspective. However, many non-profits can not afford that kind of thinking and need to have more tangible data to account for their performance. The idea of social impact can and should be used for lobbying and for getting buy-in from constituents; however, resting on that strategy to justify resource allocation and to measure results may be a risky decision to make. Conclusion: Overall, the varied performance management strategies commonly used by nonprofit organizations tend to minimize attention to internal management and governance as well as the external relations in favor of a focus on impact and the relevant costs and benefits (Berman, 2005). As previously discussed, the biggest issue faced by non-profits is the fact that their product may not be as easily defined as the services and goods are in the for profit world. The issue of the market inclination and how people are responding to their services is also another important one to be kept in mind. Non-profits are not dictated by their consumers’ behaviors, but by the environment as a whole. The definition of success in the nonprofit world is very complex and can be looked at from different angles as explained through the strategies above. Non-profits have increasingly tried to incorporate performance management strategies to its practices. And although the management of these organizations may be a little more in tune with those principles, we can not forget that those concepts may not be as evident to their staff. For many of the direct line staff, it is very hard to evidence the impact of performance management on management decisions and service improvements. Managers may be aware of the value of performance measurement in influencing decisions and improving services, but sometimes the communication with staff tend to be broad and disappointingly vague. As non-profits utilize these concepts to run their operations, they need to understand that front line staff needs to be equally aware of how the organization is performing and how that affects them. There is a presumed linkage to budget decisions, although promised in theory, is often difficult to detect in practice. Many non-profits have been good about disseminating those ideas among their managers, but that may not have been equally successful in getting their staff on board. In conclusion, performance management in nonprofit is a very broad topic that can be viewed from many different perspectives. The need to become more accountable to results has forced many of these organizations to adopt performance management systems. There are a few commonly used systems as explained in this paper, they each have their strengths and their weakness and it is up to each nonprofit manager to decide which one suits them best. This is a very new field, however, that has emerged with New Public Management and become more prominent in the 90s. There is a lot of room for new theories and approaches to be developed, and I am sure in the near future we will be hearing more innovative concepts coming into play. Regardless from which angle you look at predominance for nonprofit organizations, there will always be the issue of hard-to-define products and goals. And there will always be the cultural issues within those organizations where staff may not be as in tune as managers are of the needs to define success and measure performance. People join non-profits because they have affinity with their missions and the idea that they have to achieve goals and quotas may not be as tangible to them as their desire to help others. BIBLIOGRAPHY: 1. Bradach, Jeffrey (2005). Non-Profit Effectiveness. Washington, DC: Brookings Institution Press. 2. L., Thomas, J. Tierney, and Nan Stone (2006). â€Å"Delivering on the promise of nonprofits.† Harvard Business Review. 3. Lencioni, Pat. â€Å"Nonprofits vs. For-Profits: Mission and Performance.† Business Week Online 6 May 2009. General Reference Center Gold. Web. 1 May 2010. 4. Berry, J.M. (2003). A voice for nonprofits. Washington, DC: Brookings Institution Press. 5. Behn, R.D. (2001): Rethinking democratic accountability. Washington, DC: Brookings Institution Press. 6. Behn, R.D., & Kant, P.A. (1999). Strategies for avoiding the pitfalls of performance contracting. Public Productivity & Management Review, 22, 470-489 7. Blalock, A.B., & Barnow, B.S. (2004). Is the new obsession with performance management masking the truth about social programs? In D. W. Forsythe (Ed.), Quicker, better, cheaper? Managing performance in American government (pp. 485-519). Albany, NY: Rockefeller Institute Press. 8. Bovaird, T., & Downe, J. (2009). Innovation in public engagement and co-production of services. Meta-evaluation of the local government modernization agenda-White policy paper. 9. Emerson, J., Wachowicz, J., & Chun, S. (2000). Social return on investment: Exploring aspects of value creation in the nonprofit sector. San Francisco: The Roberts Foundation. Retrieved December 6, 2009 10. Lynn, L.E., Jr. (1998). The new public management: How to transform a theme into a legacy. Public Administration Review, 58, 231-237. 11. Lyons, M. (in press). Australia: A continuing love affair with the new public management. In S. Phillips & S. R. Smith (Eds.), Governance and regulation in the third sector. London: Routledge. 12. Marris, P., & Rein, M. (1982). D ilemmas of social reform: Poverty and community action in the United States. Chicago: University of Chicago Press. 13. Marshall, T.H. (1964). Class, citizenship, and social development: Essays. New York: Doubleday. 14. Berman, Evan M. Productivity in Public and Nonprofit Organizations. Armonk, NY, USA: M.E. Sharpe, Inc., 2005. p 15. 15. Tuan, M.T. (2008). Measuring and/or estimating social value creation: Insights into eight integrated cost approaches. Seattle, WA: Bill & Melinda Gates Foundation. Retrieved December 11, 2009. 16. Speckbacher, Gerhard. The Economics of Performance Management in Nonprofit Organizations. Nonprofit Management & Leadership; Spring2003, Vol. 13 Issue 3, p267, 15p 17. Ammons, David N., and William C. Rivenbark. â€Å"Factors influencing the use of performance data to improve municipal services: Evidence from the North Carolina benchmarking project.† Public Administration Review 68.2 (2008): 304+. General Reference Center Gold. Web. 3 May 2010 18. Kara D. Rutowski, Jeffery K. Guiler and Kurt E. Schimmel. Benchmarking organizational commitment across nonprofit human services organizations in Pennsylvania. School of Business, Robert Morris University, Pittsburgh, Pennsylvania, USA, 2007. 19. Courtney, M.E. (2000). Managed care and child welfare services: What are the issues? Children and Youth Services Review, 22(2), 87-91. 20. Kaplan, R.S. (2002). The balanced scorecard and nonprofit organizations. Boston: Harvard Business School.

Juvenile Crime Statistics Paper Essay

The Federal Bureau of Investigation tracks four offenses murder, forcible rape, robbery, and aggravated assault in its Violent Crime Index. The juvenile arrest rate for each of these offenses has been declining steadily since the mid-1990s. The murder rate fell 70% from its 1993 peak through 2001 (Snyder, 2003). Statistics: Research has shown that crimes committed by juveniles are more likely to be cleared by law enforcement than crimes committed by adults. The clearance data in the Crime in the United States series show that the proportion of violent crimes attributed to juveniles by law enforcement has declined in recent years. The proportion of violent crimes cleared by juvenile arrests grew from about 9% in the late 1980s to 14% in 1994 and then declined to 12% in 2001. (Snyder 2003). Cleared Proportions: The juvenile proportion of cleared forcible rapes peaked in 1995 and then fell, with the 2001 proportion still above the levels of the late 1980s. The juvenile proportion of robbery clearances also peaked in 1995 at 20% and fell substantially by 2001 to 14%, but was still above the levels of the late 1980s at 10%. The juvenile proportion of aggravated assault clearances was at 12% in 2001 and was slightly below its peak of 13% in 1994. This was still substantially above the levels of the late 1980s. The proportion of Property Crime Index offenses cleared by juvenile arrests in 2001 was below all but 2 years in the 1980s and 1990s. (Snyder 2003) Drug Offenses: The text highlights an overall increase in the rate of drug offenses as well as simple assaults amount juveniles. After review of arrest statistics, the finding were that law enforcement agencies made an estimated 202,500 arrests of young people for drug abuse violations in 2001. Of those 202,500 arrests a drug abuse violation is seen to be the most serious. There was a decline in juvenile arrests for murder between 1992 and 2001. During this time period there were a large number of increases as well though. Statistics showed 51% motor vehicle theft and 40 % burglary. There was also a major increase in juvenile arrests for drug abuse violations at a 121%. (Snyder 2003). Simple assault increased between the early 1980s and the late 1990s which was more than 150% between 1983 and 1997. This rate fell 7% between 1997 and 2001. Arrests of Females: Arrests of females for various offenses are increasing more than the arrests of males, and the overall juvenile arrest rate for simple assault in 2001 remained near its all-time high. (Snyder 2003). Of the juvenile arrests reported in 2001 females accounted for 23% of those arrests for aggravated assault and 32% of juvenile arrests for other assaults. Females also appeared to be the leading sex in regards to runaway violations. Females were involved in 59% of all arrests for running away from home. Arrests for curfew and loitering law violations were reported at 31% for female juveniles. Females accounted for 23% of juvenile arrests for aggravated assault and 32% of juvenile arrests for other assaults (i.e., simple assaults and intimidations) in 2001. Females were involved in 59% of all arrests for running away from home and 31% of arrests for curfew and loitering law violations. (Snyder 2003) Violent Arrests of the Races: The text points out that the disparity in violent crime arrest rates for black juveniles and white juveniles declined substantially between 1980 and 2001. In 2001 the juvenile population was comprised of 78% white, 17% black, 4% Asian/Pacific Islander, and 1% American Indian. Violent crime statistics  showed that 55% involved white youth, 43% involved black youth, 1% involved Asian youth, and 1% involved American Indian youth. The results for property crime arrests were 68% white youth, 28% black youth, 2% Asian youth, and 1% American Indian youth. Between 1980 through 2001 black-to-white disparity in juvenile arrest rates for violent crimes show a decrease. The black juvenile Violent Crime Index arrest rate was 6.3 times the white rate in 1980 and in 2001; the rate disparity had declined to 3.6. The reduction in arrest rate were primarily due to the decline in black-to-white arrest disparities for robbery, which was greater than the decline for aggravated assault. Conclusion The outlook for the juvenile crime rate is uncertain as there are many factors which will affect those final numbers. One thing is for certain and that is that the population is projected to grow throughout the county at a rapid pace. The number of juveniles age 11 through 17; the ages of juveniles responsible for 99% of juvenile arrests will increase in the next decade. This will ultimately cause a spike in juvenile offenses and arrest numbers. References: Snyder, H. (December 2003). U.S. Department of Justice. Office of Justice Programs. Office of Juvenile Justice and Delinquency Prevention. Juvenile Justice Bulletin. Juvenile Arrests 2001. Retrieved July 24, 2008, from http://www.ncjrs.org/pdffiles1/ojjdp/201370.pdf

Ethical concepts management Case Study Example | Topics and Well Written Essays - 1750 words

Ethical concepts management - Case Study Example To find out the important management concepts, I carried out an oral interview from a manager to develop an insight into the critical aspects of corporate managerial assignments. This is a report of the oral interview of Mr. Olivia Akani, the founder and chief executive officer of Customs mobile catering company. This interview was undertaken on 5th November 2013 in the office of this Iconic entrepreneur who opened a closed door on a new approach towards service to humanity. This interview was based on business ethical dilemmas which is an aspect of management and is an emerging serious issue in the society. This topic was obtained from the chapter three on the nature of ethics from the given text. Theoretical concepts in this chapter and the case of coming across a person being mugged and pondering over helping will act as the guiding tool in the interview and conclusions. Introduction Ethics is a generally acceptable unwritten way of doing things which is consistent with the social order of any organization. The code of conduct is always defined by that given organization’s cultural beliefs (Trevino, Linda and Katherine 36). This cuts across various communities, corporate world, governments and individual behavior. In this case, an interview was conducted with the chief executive officer as the interviewee and the focus was on how to inculcate the concept of ethics within employees and ways of solving a situation of ethical dilemma like in the case study referred to in the text chapter. Management requires requisite critical analysis ability and in-depth assessment of consequences of any action. Managers may always find themselves in ethical dilemma either directly or through their juniors (Ko?ster 65). Top manager like a Chief executive officer is always bound to make difficult decisions that demands win-win outcome with an ethical concern. In an effort to make profit, there is always the code of ethics practiced by any organization that need to be ad hered to every time in the course of production process (Garsten and Tor 125). This interview would serve as the basis of further analytical concepts of ethical dilemmas in management process. Summary of questions and corresponding responses from the interview Question Response The industry the company belong The company falls within the competitive food, beverages and events catering services industry Management levels in the company The company is headed by CEO, top brass managers, middle managers and supervisors in that order. The management position held Chief executive officer of the company Daily work and overall job description Being the CEO, the daily work entails overseeing the activities going on in the company through reports received from top management team and individual observation. The job description in this case can summarily be defined is act as the overall custodian of all management activities that are meant to propel the organization to greater heights. Persona l management approaches and skills Participatory decision making is the best as it incorporate the diverse ideas of various stakeholders to the company hence ensuring that the decision made serves the interest of the company and its stakeholders in equal measure. Sound interpersonal communication skills are the best tools to apply in success focused management. Personal values and traits that helps in managing the organization Being a strict adherent to the company’s laws, regulations and codes of ethics is one trait that can has brought the company to where it is today. These values can be transmitted to other managers and the non-managerial employees through being a role model which has worked in the company. Interest in details is also a critical tool that has helped in exhaustive resolution of a challenges

Business plan for a startup business Assignment

Business plan for a startup business - Assignment Example tomized computers and repair service in the next three years of operation by offering customers the latitude to customize the specification and performance of their computers at a low cost with an after sales support of highly competent technicians. Computer Savers is a computer assembly and repair business intended to cater to small business owners as well as home PC users. It is engage in the selling of computer parts and software and is also engaged in the customization, upgrade, repair, virus removal and hard disk data recovery of computers. The company intends to create a niche in the computer retail and service industry by providing customized computers as well as providing repair service at a significantly lower cost than competition. Computer Savers offers customized computers and repair service to its customers. To enable Computer Savers to offer customized computers to its customers, it will sell computer parts for ease, convenience and easy availability of the necessary hardware to assemble a computer. It will also sell licensed softwares to make the assembled computers usable after leaving the outlet. The repair service component of Computer Savers will complement the computer customization business by offering repair service after the computer’s warranty coverage has elapsed. It will work in synergy with the computer customization business as the skills needed in the repair component of the business can also be used in the assembly of computers. Computer Savers will make a niche in the computer retail and service industry by offering computer products and services that is significantly lower than the competition. It will cater to the specific segment of a market where end users prefer to customize the specification of their computers. Computer Savers will also offer an after sales support through its repair business component. Combining these elements of offering customized computers at a lower price with an after sales support will make

The Body Shop Marketing Plan In Hull Assignment

The Body Shop Marketing Plan In Hull - Assignment Example Since it is a socially committed company, Body shop gives more priority to environmental protection and human right protection. Hull is one of the most heavily populated cities in England. It has a large tradition and heritage. Moreover, Hull is one of the heavily industrialized cities in England. The per capita income of people of Hull city is more than that of other people in England. Body shop has better business potentials in Hull city, especially in the coming spring season. This report discusses the marketing strategies suitable for body shop to exploit the market potentials of Hull city in the coming spring season. Background Corporate social responsibility and sustainable development are some of the popular business terms in the modern world. These terms got popularity because of the increasing awareness of the people about the protection of environment and the consequences of injudicious exploitation of natural resources. Corporates in the past heavily exploited the natural resources and hence the environment is facing huge problems now. Modern generation believe that it is the duty of the corporate companies to give something back to the communities in which they operate and to the environmental protection. ... d.). The Body Shop is the leader in cosmetic industry at present. Founded at Brighton, UK, in 1976, Body shop has expanded its wings to continents such as America, Asia and Europe. Hull is an important British market for the body shop. Hull is a city with immense heritage and people in this city give more importance to the protection of their beauty. The demand for cosmetic products is high in Hull compared to other cities in England. As in the case of many other businesses, cosmetic business depends heavily on seasonal changes. March, April and May (spring) are months with pleasant climate in Hull. During spring, people got out quite frequently and engage in so many activities including beauty care activities. With the help of suitable marketing activities, Body Shop can increase its sales in Hull city during the coming season. This paper analyses the marketing strategies required to position The Body Shop and its products during the spring in Hull. Environment analysis External and internal environments are equally important for a company like body shop to formulate effective marketing strategies. External environment has to be analysed at the macro and micro levels to get more insights into the effectiveness of the marketing strategies of Body shop. External Environment Robens (2007) pointed out that â€Å"Mergers and acquisitions are two common and prevailing means for company growth in today’s business world. They represent options that aim at a very high degree of integration, as opposed to cooperative agreements and joint ventures† (p.12). â€Å"On March 17, 2006, Body Shop announced that it had agreed to be taken over by L’Oreal in a ?652 million (US$ 1.14 billion) deal. L’Oreal offered 300 pence a

Fine Foods Essay Example | Topics and Well Written Essays - 750 words

Fine Foods - Essay Example Advertisements are placed on websites and local media and some are displayed through a company intranet. One of the best things about their policy is that they try to hire from within the company. That means that employees are familiar with the operations and the culture. However, if a company becomes to reliant on this method of hiring they will find that they rarely have new blood or ideas. It is important not to over-prioritize internal hiring as it can lead to redundant thinking and tiredness. Kudler’s training program is substantial. One of the best things about it is the 60 day buddy period which allows new employees to be supervised and gently acculturated to the company. However, 60 days is a long time to have a buddy and surely that â€Å"buddy’s† productivity will be reduced if he spends all his time with the new employee. If too many employees are hired at once, too many buddies will be spending all their time training. It’s important to keep this in mind. All payroll data is outsourced by Kudler. In some respects this is a good idea because it frees up HR resources in the company and saves a certain amount on personnel and the data system. However, one possible drawback of this method is the security of the employees data. By outsourcing the system to another company it is possible that confidentiality might be breached. No one wants that. A thread that runs through all these aspects of Kudler’s human resource management is a culture of respect for the employees. Management is a complex art. It involves a lot of angles relating to competition, performance and commitment. It also has a lot to do with competition. Kudler is hardly the only fine foods company in town and they must constantly be monitoring their competition to see how they are performing. Their prices and services change depending on the successes and failures of the competition. Training and

Corporate Governance in Public Limited Companies in the UK Coursework

Corporate Governance in Public Limited Companies in the UK - Coursework Example The paper tells that in the past years, the increment in freedom has become eminent, in all aspects of business activities thereby creating more opportunities for entrepreneurs. There has been international market development, especially for UK based companies. Cross-borders business relationships have increased dramatically. The UK has also generated a lot of developments. The businesses have clearly indicated that they have the knowledge and the strength to explore new ventures abroad and also in the UK, and have thus helped increase the affluence. The business community wants to show that their enterprises are ready to shoulder this increased responsibly. Many business ventures have realized that by creating good relationships with the stakeholders, there would be more business opportunities that will come up. There should be mutual trust between a company and the public in order to have improved competitiveness and ultimately higher and better living standards of the people. Ensu ring that the business community is trustworthy can be done and achieved by improving relationships between the stakeholders, from the top management to the lowest shareholder. The corporate governance system in the UK has been very effective. Regulations that have been established have assisted enterprises in conducting relations between the stakeholders in companies. It was a firm belief among the UK business community that in order to obtain acceptable results, internal governance and supervision within the enterprises should be increased immensely. There was a lot at stake, and it was important that the initiative came from the business community itself and that it pointed out methods to alleviate the confidence of the stakeholders involved and that the public had the right to demand from enterprises.

Explore the presentation of and possible difference between addiction Coursework

Explore the presentation of and possible difference between addiction and obsession in Winterson's 'Oranges are not the only fru - Coursework Example Christina Rossetti and Jeanette Winterson are two great writers who bought out the deep desires for women through their literary works. Christina Rossetti was one of the renowned female poets of the Victorian times, who explored the forbidden territory through her work. Rossetti was born in 1830. She was one of the earliest women writers to express the unquenchable feeling of search in her poems. She put desires and mistakes of mankind in common to both men and women in an era where spiritualism as well as passion was reserved only for the male gender. Her poems were perhaps the first to claim women had more needs apart from being the heartthrob of a brave man and mother of many. One other writer who explored the world of women in a way no one else did before is Jeanette Winterson. â€Å"Oranges are not the only fruit† is more or less Jeanette Winterson’s autobiography. She expresses the confusion of modern day women on realising her own self and the rules religion forc es her to follow. If Christina Rossetti’s poems are a mirror of the past century, Jeanette Winterson’s prose works are an exploration into the modern day woman’s position. However, there were a hundred years in the middle during when women evolved slowly through a harsh path. â€Å"A Streetcar Named Desire† written by Tennessee Williams with Blanche Dubois as the female protagonist is by far the best portrayal of women in that era in. Blanche, the heroine of the play is a person who explores her sexuality boldly with numerous people. She tries to protect herself from her own desires for the sake of maintaining sanity and social respect. The play portrays the dilemma of women in the transition era. Christina Rossetti published "Goblin Market and Other Poems" in 1862. Elizabeth Barrett Browning, one of the most prominent female poets of the Victorian era had died the previous year. Rossetti was looked upon as her natural successor partly due to her good fam ily background and its associations with numerous artists and writers. She started writing at a very young age and her first works got published when she was just 31. Rossetti explored the banned with her words in an era where women faced very strict confinements. Her poems were perhaps the first to claim women had more needs apart from being the heartthrob of a brave man and mother of many. Jeanette Winterson was bought up in a Pentecostal Evangelical family. She wrote her book in 1985 when the women writers were busy creating Harlequin romances. Readers bombarded by the Mills and Boon novels saw "Oranges are not the only fruit" as a fresh work done by a genius writer. She represents the confusion of modern day women on realising their own self and the rules religion forces them to follow. Rossetti’s works are known for beautiful rhyming and simile usage. Assonance and alliteration in certain verses of â€Å"Goblin Market† like â€Å"hoary roaring sea† and th e picture it creates in our minds with vivid descriptions are wonderful. In the passage where the goblins smear Lizzie with fruit all over her body, she places her rhyming lines ‘distance’ and ‘resistance’ nearly nine lines apart. But, it still sounds perfect. Making the rebellious heroine like Lizzie and Lara ready to try the banned emerge victorious is a rare thing to find in the early 19th century literature. Plays like â€Å"A streetcar named desire†

Microsoft Company Analysis Assignment Example | Topics and Well Written Essays - 6250 words

Microsoft Company Analysis - Assignment Example The Company also designs and sells hardware, and delivers online advertising to the customers. The Company operates in five segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division (OSD), Microsoft Business Division (MBD), and Entertainment and Devices Division (EDD). The Company’s products include operating systems for personal computers (PCs), servers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games, and online advertising. It also designs and sells hardware, including the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 accessories, and Microsoft PC hardware products. In July 2012, the Company purchased Edgewater Fullscopes Process Industries 2 (PI2) software and intellectual property. In July 2012, Comcast Corp. acquir ed the Companys 50% stake in MSNBC.com. In October 2012, it acquired PhoneFactor Inc. On July 18, 2012, it acquired Yammer, Inc. (Reuters). Another key acquisition made in 2011 is Skype, Ciao, and Videosurf. On the other hand, apart from these, the company is also very active in the emerging cloud computing business, with cloud-based software and services being the core components of the cloud solution. Usage payments together with advertising are the key sources of revenues for its cloud business. These cloud offerings include Bing, Xbox Live, Windows Live, Microsoft Office 365, Microsoft Dynamics CRM, and Azure. These services are offered either individually or as part of solution suites. In all the company is present in more than 100 countries and basically has a planet-wide business, in concert with its key competitors.  

Job search plan Research Paper Example | Topics and Well Written Essays - 2000 words

Job search plan - Research Paper Example Consequently, the formation forms a crucial source of natural gas reservoirs. Thus natural gas extracted from these reservoirs would be used as a source of energy. Marcellus Shale, like other fossil fuel formations such as oil and coal, was essentially formed through decomposition of remains of plants and animals over a long spell of time. Natural gas could be formed through two processes which include the following: Thermogenic formation. This process refers to the formation of natural gas as a result of temperature and pressure changes in the Earth’s crust resulting in compression effects on the overlying debris. Consequently, Marcellus Shale formation was as a result of a thermogenic formation process. Thus, the shale is a geological formation that was formed as a result of accumulation of sediments in the sea. Consequently, organic matter (such as the remains of plants and animals) was compressed at extremely high pressures for a long time. This process resulted in the formation of thermogenic methane. The organic particles decomposed were covered in mud and other sediments. Consequently, the debris exerted pressure on the underlying organic matter. This cycle was carried on for long spells of time amounting to millions of years. Thus, with time, more and more sediments and debris was piled on the organic matter beneath the materials. This, in turn, continued to exert increased pressure on the organic matter. As a result, the organic matter was compressed. Consequently, the compression resulting from the overlying debris broke down the organic matter. This process was also aided by the exi stence of extremely high temperatures beneath the Earth’s crust (Victor, and Jaffe 26). Since the crust’s temperature increase with depth, at shallow deposits with low temperature, more oil was produced as opposed to natural gas. However, at deep deposits with extremely high

Preparing to Teach in the Lifelong Learning Sector- Assessments Essay Example for Free

Preparing to Teach in the Lifelong Learning Sector- Assessments Essay Role, responsabilities and boundaries of teacher in the teaching/ training cycle. The key aspects of current legislative requirements and codes of practice relevant to your subject and the type of organisation within which you would like to work. Expalin how you could promote inclusion, equality and diversity with your current / future learners. Identify other points of referral available to meet the potential needs of learners. Explain the ways in which you would establish ground rules with your learners, and which underpin behaviour and respect for others. Explain ways to embed elements of functional skills in your specialist area. Explain the need for keeping records and describe the types of records you would maintain. State the different assessment methods available and explain the ones you would use for your subject area, including reference to initial assessment. State the types of assessment records you would complete and explain why. Produce a learning programme/scheme of work in your subject area, for a minimum of six sessions (the length of each session is to be agreed between yourself and your tutor). Produce session plan(s) (these can be from the scheme of work or different) for a minimum of 30 minutes. Deliver the micro-teaching practice session(s), demonstrating a selection of teaching and learning approaches to engage and motivate learners. You need to communicate appropriately and effectively with learners. You must not deliver the same planned session more than once (total 30 minutes of delivery). Explain and justify the reasons behind your choice of teaching and learning approaches and use of resources for one of your delivered sessions. Obtain feedback from your peers and tutor/observer, and complete a self evaluation to refelct and evaluate the effectiveness of your own teaching. Give feedback to your peers regarding their delivery. (Peer feedback is applicable to micr-teach sessions only). Complete a reflective learning journal after each assessment task completed and/ or session attended throughout the PTLLS programme. At the end of the programme, complete a summative profile and action plan.

Systems development life cycle.

Systems development life cycle. SYSTEMS DEVELOPMENT LIFE CYCLE. Business Dilemma There is no potential issue as unique employee identification is important to any business that wants to provide security to its organization and its employees, thus is also convenient. The issue here is that tracking employee hours worked based on their last name is not suitable as employees might have similar last names. Therefore might be convenient for it to be based on their employee identification as the identification card will have a unique pin number for each employee. The issue here is that the employees should be given options regarding discretion for working hours since some of the employees might not have the necessary to work 8 hours due to some reason that should be made known at the beginning of employment. The main potential issue here is that there shouldnt be a standard rate and that double time and time and a half rates should be taken into consideration. Managers should be scheduled to work morning and evening shifts. In other words they should be their throughout the day to oversee the running smoothly of the business. Also, when unseen circumstances arise managers are there to offer support, help and make the necessary decisions. The issue here is that employees might have to attend to unforeseen circumstances so therefore the 8 hours of working time might be a lot for some of the employees because emergencies can occur at any given moment. Server s should be allowed to work all three shifts as it will provide them with options. There is no issue here as managers are in charge of who to hire and therefore should also be allowed to delete and change employees from the system. MAKING BUSINESS DECISION 1 1. ADVANTAGES AND DISADVANTAGES OF USING AN EMPLOYEE TO BUILD A CUSTOM SYSTEM. ADVANTAGES An employee building the custom system will be cheaper than it being purchased. It will be easier for employees to use and understand as it is build by one of their own colleagues. There will be less time for training. (Explain) DISADVANTAGES It will take valuable business time for the employee to build the custom system. The business might have to hire a professional to look at the new system hence will be costly for the business. The new system might be prone to error which will contribute to the expense of the business as they will have to refer to professional help. ADVANTAGES COTS allow for just purchasing of the components and putting it together which will be cheap for the business instead of developing a new system. It will include a description of the software functions; hence will be documented to good commercial standards as it will give the names of the resources needed to run the software. Decreases the development time for new products. The components will be readily available, comprehensive functionality and therefore potentially frequent upgrades. DISADVANTAGES The initial cost of purchasing the COTS components might be costly for the business. The components would be limited to only certain functionalities. It might cause potential unreliability. There might also be difficulty in the integration procedures. The older employees will have competency issues because they will have to learn to adjust to the new system as education will become a primary focus. There will be resistance to change by the older employees as a new system might cause insecurity of jobs. Therefore, to ensure a smooth transition training must be offered to the older employees and also ensuring that jobs are not at risk. MAKING BUSINESS DECISION 2 From reviewing the employees testimony, it is most obvious that the payroll system is functioned manually beginning from their payroll manager John Tahoe who collect the timesheets, calculates regular , overtime and holiday hours and then sends it for approval by the manager. Finally he adds the staff members commissions. From John the payments are sent to Mary Jane the tax manager for the coffee shop. Her task is to calculate city, state and federal taxes; she has to correct the incorrect check amounts issued, employees who have gone pass their sick and vacation time must be tracked by her and lastly she has to generate checks for the salaried employees. Ted Whitetaker is the store manager for the coffee shop. He is the person who signs off on all the time sheets, he checks the staff members schedule so as to validate the times on the employees timesheets, tracks vacation and sick time, thus when employees go pass the sick and vacation time when quitting he will sign a form detailin g that they have to pay back all negative vacation or sick time. Adding on, the payroll department must be finding it very time consuming and error prone when most if not all of their tasks are done manually. Firstly, the payroll manager John Tahoe is in need of a system that automatically tracks sick and vacation time and also a system that calculates regular, overtime and holiday hours that will validate the time sheet. If a new system is to be implemented than it would have to be very capable in that it is easy to use and understand. I think it would be wise to put in place a system that calculates working hours on a timesheet that is done by employees and in that they can clock in and clock it when work is done. Hence, at the end of the day John just has to check with the system. The issue here is that the employees are honest in when they clock in and clock out. Mary Jane the tax manager needs a system that automatically determines taxes and does quarterly tax filing statements, performs audits and allows for employees to perform direct deposits. The main issue here is that even if a system can automatically calculate the taxes at the end of the day it is dependent on the input of the payroll department so as to determine the right tax amount. Thus, the payroll department will have to be very thorough in their input in that it is accurate. A question that should be asked is if there is a system that performs quarterly tax auditing automatically. Additionally the input will still have to be done manually so consistency and accuracy is vital. In the case of the direct deposits, the business can just directly deposit the employees salary straight to their bank accounts but some of the employees might prefer receiving their salary from their managers on their pay day which can become an issue for the coffee shop. Lastly, Ted Whitetaker the store manager requires a system that calculates commissions, handles sales forecast and what if analysis on staff commissions rates and also a system that could design promotions for their best customers, repeat customer and customers who have never used their coffee club cards before. The main issue here is a system handling sales forecast in the sense that it is accurate and gives attainable methods of forecasting. A question that should be asked in this scenario is if there is such a system that could design promotions for customers so as to increase sales. Ted I assume will have to do this without using a system; he may have to do some research to find ways in which he can do promotions that will attract customers such as advertising. In conclusion, the three employees list of requirements for systems they want seem reasonable in that there are systems that can help them with the work but some of their need will just have to be done manually. Furthermore even with systems that could make their jobs easier, the system itself will be dependent on the input of the employees and while introducing a new system an issue that should be considered is the cost the business will have to pay in relation to time and money. Employees in the payroll department need to be accurate and precise with the data that is input into the system so as to get the best reliable and relevant information that is needed and must get the best training possible so as to use the new payroll system if implemented. APPLY YOUR KNOWLEDGE To involve all relevant stakeholders i.e. 1 from the Management, 1 representative from the IT department and a representative from the user. It is vital to get the system implemented with input from all perspective, mostly the users. This, system specification, is the most important aspect of system implementation. Risk Management can just implement the system without getting feedback and approval from users and other representatives in the company. It is important to interact with users in all stages of implementation, design, testing and ‘go-live. ENTERPRISE ARCHITECTURES BUSINESS DILEMMA The difficulty in determining the rate of return of components in the enterprise architecture is that components are sometimes not used in the business until circumstances arise when they have to be used. Especially in a small coffee shop where components are used when serving customers are said to fetch a high rate of return on investment but during an emergency then items such as a fire extinguisher can be useful and thus will have a high rate of return as it prevented destruction to the business. For example, coffee cups when purchased are used to serve customers can be said to have a return on investment for the business, thus when not in use can cause a low rate of return on investment for the business. Therefore it is difficult to determine rate of return on investments as it will depend on the structure of the business and when components are in use. Also, damaged components will bring a low rate of investment or no rate of investment at all and components that are always in use will bring a high rate of return on investment. To determine the cost vs. benefit of the proposed dishwasher, keyboard and mouse, the business will have to look at costs such as how much these three components are, will it need regular maintenance (dishwasher), whether the components are a necessity to the business or not. The benefits can be determined by how much the business will make out of this components, how long it will last the business, the rate of return on the investment of this three components, the ease of use, training is easy to dictate to employees on how to use the tree components and finally if it makes work easier and faster. MAKING BUSINESS DECISIONS 1 BENEFITS OF DEPLOYING A NEW, UNPROVEN TECHNOLOGY This will increase revenue for the coffee shop. Broadway Cafà © can have a general rule of space occupation that the customer has to buy a product. Most customers are technology savvy and they need access to internet from time to time throughout the day. It can increase productivity in that customers will be attracted to the coffee shop especially since it will offer customers the chance to access the internet from their shop via a power line. There will be advancement in communicating such as in emails, thus messages can be received instantly. CONS OF DEPLOYING A NEW AND UNPROVEN TECHNOLOGY Introducing a new system maybe costly for the business to implement, and especially in this case an unproven technology. The management team will have to perform a cost and benefit analysis and whether introducing a new technology will be an advantage or not. Regular maintenance may have to be performed which can be costly to the business. Setting up of a new technology might be time consuming for the business and thus might result in unexpected costs. Based on my findings I wouldnt implement BPL. The reason being is that it is dependent on power lines that can cause interference for other users. Also, a small coffee shop doesnt really need an internet access since it will be very costly to the business. Furthermore, BPL might not have a competitive advantage as there are other technologies that can perform better and faster than BPL. MAKING BUSINESS DECISION 2 Some of the strategies that can be used to backup a computer in case of data loss are: To make regular data security backups of data used in the business and to have it kept away safe in a remote place. Make a backup of the hard disk if a new software is being installed hence it will ensure business to get back on track in case the hard disk fails or is corrupted. All transaction and records should be well documented and kept in a safe remote place. The first third party utility that could be used is called Norton Ghost 15 Symantec New PC Backup win 7/Vista/XP. Features Protects the PCs application, settings, folders and files. It has advanced backup and recovery. Provides powerful protection such as offsite backups and Symantec. Offers incremental backups and enhanced compression that help reduce the amount of required storage, thus helps keep everything safe. It works well with most storage devices including external hard drives, networked drives and recordable and rewriteable CDs and DVDs. The price of this is in US dollars cost $29.95 converted to Fiji dollars is $53.95 excluding transportation costs to ship it from the US to Fiji. (http://www.metasearch.com/www2search.cgi?p=third+party+utilities+that+perform+backup%2Crestore+and+ghostingl=20s=o) Another third party utility is Norton Ghost 15 Backup win 7/ XP/Vista. Features It creates full system and file backups. Recovers system and data even when computer cannot be restarted. Enables convenient, secure offsite backups. Lets you decide what is backed up and when to customize backups based on how you use the computer. The cost of purchasing Norton Ghost 15 Backup is USD 25.98 (FJD $46.19). The exchange rate used for this conversion is 0.555. The cost of purchasing this software in US dollars is $25.98 and so when converted to Fiji dollars will accumulate to $46.19. (http://www.metasearch.com/www2search.cgi?p=third+party+utilities+that+perform+backup%2Crestore+and+ghostingl=20s=o) The final third party utility that can be used is the New Norton Ghost 15 Symantec, Backup Restore, and X/Vista/7. Features It has multiple storage options that offer backup to almost any media. Backups your file to network attached storage devices. It has a full system backup thats back up everything on a hard drive. Incremental and differential backups. Backups only files that have changed. In US dollars the utility would cost $25.95 and so in Fiji dollars would be $46.13. These charges are without the transportation and other costs included in getting it to Fiji. (http://www.metasearch.com/www2search.cgi?p=third+party+utilities+that+perform+backup%2Crestore+and+ghostingl=20s=o)

Strategic Management At UNIQLO

Strategic Management At UNIQLO Today, UNIQLO is described as the apparel giant Gap, Inc.s counterpart based on the 4, 000% share price increase, making UNIQLO as Japans third largest clothing retailer. However, it is not always victory for UNIQLO; the subsidiary also has its own share of downturns especially on its international expansion. For instance, expansion programmes in the United Kingdom (UK) saw a tumultuous stumble in profits, forcing Fast Retailing to shut down 16 of the 21 UNIQLO stores opened, because of competition. Most recently, three UNIQLO stores in New Jersey were also closed because of economic slumps. Despite these facts, UNIQLO maintains the spirit and still believed that the brand has only but way forward. How UNIQLO will going to do such is central to this paper, focusing on the companys strategic management. External, industry and competitor analysis as well as the internal environment will be addressed. Political factors have direct impact on business conducts and operations. Decisions made by the affects the decision-making of retailers and could come in the form of policy or legislation. In Hong Kong, the one country, two systems is the prevalent governance philosophy which endows the special administrative region with a high degree of autonomy and its capitalist economic system. Within a capitalistic and free market-oriented economy, retail companies make the majority of microeconomic decisions but they have to conform to specific agreements. Mainland and HK Closer Partnership Economic Arrangement (CEPA) and the US-China Textile Memorandum of Understanding are two examples of this. The former provides UNIQLO with a tariff-free treatment, stating that products which have no existing CEPA rules of origin will enjoy tariff-free treatment upon applications by local manufacturers. The latter could provide UNIQLO with an opportunity for an annual growth of 8-17% in 21 categories of Chi nese textiles and clothing exports to the US. Labor and customary regulations as well as code of conducts are also complied into including China Social Compliance 9000 and US and EU quotas (RSCA 2006; Doshi 2006). Economic Analysis Domestically and globally, businesses are also being affected by economic factors whereby a strong economy indicates positive results and weak economy signifies the opposite, affecting both businesses and consumers. Hong Kongs gross domestic product is estimated at US$206.7bn with the service sector that contributes 90% of the total GDP. The region is also named as the worlds eleventh largest trading entity. Almost 50% of the total population is employed full-time and the unemployment rate has a continuous average decline by 4.1%, making disposition of income a possibility, a lower cost of living that is (Monthly Digest 2008). Spending is generally devoted for food, housing, healthcare, transportation, amusement, services and apparel. People nowadays are very particular with investing in quality clothing thereby resume spending with premium apparel finds (Doshi 2006). Realising this, the price and quality characteristics of UNIQLO has a strategic fit; UNIQLO makes people look fashion able and confident in world-class clothes at a reasonable price through the company-wide integration of the Specialty Store Retailer of Private Label Apparel (SPA) model, a low-cost but effective operation model. Social Analysis Demography or the population characteristics may determine buying patterns and that understanding demographic changes within a particular region or place facilitates determining whether products and services would appeal to customers as well as the number of potential customers (Barney and Hesterly 2006, p. 35). Hong Kong has a total of 6, 985, 300 population based on 2008 estimate and is continuously growing due to immigrant influx from Mainland. According to Doshi, people in HK and elsewhere have a growing interest in private labels. Consumers aspired for having private levels on everyday garments. Casual wear from HK which is known for good design and quality has a positive image on global consumers. Nevertheless, international brands are concentrated in high-end consumers while domestic brands are for low-end consumers (Doshi, 2006). In taking advantage of the wealth of the demography, UNIQLO makes effort on providing high-quality merchandise and generating values to the society by taxes. Further, UNIQLO is a company that is committed in creating positive reputation as manifested in its vision and mission, styles of management, ways of doing business and requirements to employees. Technological Analysis Technological innovations are a priority for the apparel retailing industry but it will remain as labor intensive as it is today. Boosting the industrys productivity, increased in automation has been the recent trend but it is limited on specific functions, to which mostly require human intervention such as sewing and making patterns. Although there are computerised sewing machines that increase the productivity and reduce training time. Further, the uses of computer system software intended for the industry will be on making rough sketches, printing detailed designs and storing of information for easy retrieval. The customer orientation of UNIQLO was basically construed from its website in which customers can give feedbacks by email and discussion board. Hong Productivity Council made a report disclosing that the apparel industry could make sense of information technology (IT) if utilise for order processing, costing analysis, order tracking, material management, reporting and conne ctivity (2004). Industry Analysis Porters Five Forces Analysis A) Threat of Entry Barney and Hesterly (2006, p. 43) point out that new entrants are the firms which have either recently begun operations or those that threaten to begin operations within an industry soon. Notably, the apparel industry is a buyer-driven industry where producers are considering buyers decision-making especially when brand names enter the picture. These buyer-centric industries have low barriers to entry mainly because of intense competition. Utilising brands as a market power source; however, this is a challenge for every clothing company. In the clothing business, mass customisation has seen to be the most effective strategy. Putting strategises into action remains to be in resilience today (Culpan 2002). Therefore, the focus must be on minimising the costs without sacrificing quality and to do this, managerial know how is a must in order to understand interactions with suppliers and consumers, to facilitate creativity and innovation and to maintain mobility in adapting to new market demands (Kincade, Regan and Gibson 2007). Building brand awareness and consumer loyalty is a costly endeavor since it involves advertising needed not only to promote the brand but also on sustaining awareness and loyalty. Strengthening brand names also requires that there are quick response programs to increase revenues and manage risks. One of UNIQLOs major resources is its brand name, which is now synonymous with comfortable, high quality and cheap clothing merchandises. Although brand awareness outside the home country is a challenge, it is of intangible value to UNIQLO as a business asset. Brands are valuable and rare and reputable brands are acquired through the impressions one has of the company, and its products or services. Since a brand name is built overtime it becomes costly to imitate thereby providing a sustainable competitive advantage in the apparel industry (Groucutt, Lydley and Forsyth 2004, p. 285). B) Threat of Rivalry Either in home or host countries, apparels, accessories and merchandise will always have a competitor which usually fluctuates in size. The modern market trends for the apparel industry are globalisation and intensified competition, increasing price and lower profit margin pressures, small quantity with high complexity orders, shorter lead times, multiple location operation, changing customer requirements and liberalisation on textile and clothing quota that creates new market dynamics. Being responsive to these market trends shifts the focus of the apparel industry for more extensive product development and improvements at the least possible cost. Such condition forces companies to divert on product differentiation because of high switching cost. In an industry where products are deemed to be equal, the key sources of differentiation are brand image, reputation and prior existence (Byoungho 2004b). For UNIQLO, the products themselves are an important source of competitive edge. UNIQ LO strives at developing products of high quality, in various collections to enable the company to reach the highest possible number of customers. As such, the rivals would be endangered when it comes to introducing innovative products. UNIQLO is positioned in the fashion capitals of the world for the purpose of taking advantage of the new information about fashion trends. UNIQLOs ability to quickly adapt to trends and new markets has helped them develop product differentiation, something that is key to the companys success in the apparel industry. According to Tokle (1990), product differentiation is what separates the top competitors from the rest, but it something that is not costly to imitate. This is why their product differentiation is only a temporary competitive advantage. Competitive advantage could be achieved once the organisation learns to manage its capabilities that the end consumers could appreciate and competitors would find difficulties imitating (Porter 1985; Roney 2004). C) Threat of Substitutes Casual wear is very particular with loose-fit, comfortable and relaxed fit. Athletic or active wear was perceived to be the closest substitute to casual wear as manifested by the booming athletic wear industry. Typically worn as casual fashion clothing, active attires could provide deterrence in the industry. Moreover, the blurring demarcation on the casual clothing family could be also seen as an opportunity for substitutes. Specialised stores offer semi-casual, smart casual and business casual lines. Semi-casual clothes are less presentational than informal but are not as loose as casual dresses. Smart casual purports conservative looks but with harmony on colors, fabrics, shoes and accessories. Business casual, on the other hand, varies in definition but the common element is the collar. Realising this, the bottomline now is the price. Moreover, based on the SPA business model, all the necessary functions at UNIQLO falls under a single umbrella especially the inbound logistics and the production. UNIQLO is an example of a cut-make-trim company in which in which the company purchase the fabric and retain ownership of the raw materials and work-in-process, and so making it hard for rivals to imitate or produce substitutes for UNQILO brands. D) Threat of Suppliers The prices and availability of commonly used fabrics such as cotton, blends, synthetics and wools might fluctuate significantly due to its dependence on demand, crop yields, weather, supply conditions, transportation costs, government regulations and economic condition among others (Byoungho 2004a). Quota is the major factor that affects the demand and supply of textile and fabrics. Even though the sale of raw materials is standardised, independent contractors, raw material suppliers, importers and apparel manufacturing firms could not isolate themselves from such scenario because of the prospective unsteadiness in the supply chain (Chetty 1999). As well, because of forward vertical integration, coupled with the low barrier to entry, suppliers could easily become rivals. In becoming threat of entry, suppliers could be also become a competitor to already established apparel manufacturers. In addition, contractors is also one of the threats when the demand of the labor increases, it wi ll cause labor costs price inflation. Laszlo (2008) stress that there are five main parts of the apparel value chain including raw material supply, provision of components; production networks; export channels and marketing networks at the retail level. Through the process, UNIQLO has an ownership on production and thereby a complete control on the supplies procurement. UNIQLO insources its production and handles the majority of the operational details. Sourcing is a go-to in the apparel industry but it is not rare although it can add value to UNIQLO. E) Threat of Buyers Reaching more and diverse consuming group, the apparel industry is both a stable and unstable industry. Stable because quality price and quality products are the main element and unstable because there are many factors that affect both price and quality. In the point of consumption, for instance, there are middle men such as the retail stores that offer an array of brands. In purchasing manufactured apparel, retail stores could have influence on making significant requirements and demands on their purchase, affecting prices. Though quality is inherent, prices would not be reasonable at all, and alternative clothing is readily available. This explains why apparel manufacturing companies are setting up their own stand along stores which will cater to their own produce. Important is that apparel stores must not fall dependent on s specific class of customer. Buyers are increasingly appearing to prefer above standard apparel with a much lower cost, making apparel less differentiated. Whe n selling directly to consumers, buyers would incur a significant portion of their dispensable cash. Same goes with retail store, they purchase apparel at the least possible final cost, but adds up to prices of apparel. UNIQLO is involve in selling to the customers through specialty store marketing, with a minimalist strategy of pile em high, sell em cheap concept that is. In addition, the unbranded fashion or the no-logo concept was perceived to be the main reasons for peoples warm attention (Williamson 2007; Parrish, Cassill and Oxenham 2006). Competitor Analysis Local Competitors 1) Bossini There are three competitors for UNIQLO: Bossini, Giordano and Muji. Bossini International Holdings Limited is an apparel brand owner, retailer and franchiser nestled in Hong Kong. From its onset in 1987, Bossini continued to grow both domestically and internationally. Today, the global distribution network is comprised of 551 directly managed and franchised outlets in Mainland, 322 export franchised outlets, 178 directly managed outlets in Hong Kong, Taiwan, Singapore and Malaysia and 1, 051 outlets in 20 countries. Taking pride on its Bossini brand that is comfortable, easy to mix-and-match, colorful and energetic like the Family-Fit brand, Bossini was able to cater to various consumer requirements in a value for money fashion (Bossini Annual Report 2006/2007). The strength of the brand and the people was drawn from the seven practices: face reality, keep it simple, act with the speed of light, set stretch goals, drive quality, create and sustain a learning organisation and keep the A, nurture the B and discard the C. Through this set of practices, Bossini puts emphasis on quality, efficiency and profitability as a source of competitive edge. The company is also continuously building brand awareness by means of innovative cross-regional marketing activities. In enhancing its supply chain, Bossini shorten the product cycle from design to store and will continue to build string ties with them in a proactive manner. Building up an IT system is a strategy meant to drive future growth and profitability. Though the company deals with closure of unsuccessful outlets whenever necessary to divert their attention to areas which needs a closer concentration and with participating in broad campaigns and dual-branding to promote the products and to expa nd market reach, Bossini is more focused on its four core markets. 2) Giordano Established in 1981, Giordano is one among the popular and established casual apparel retailer in Asia Pacific Region which employs about 11, 000 staff with over 1, 895 shops operating in 30 territories worldwide. From its restructuring from 1986, the company prepared for international expansion, which was made possible by the initial success in Hong Kong, Mainland and neighboring countries such as Taiwan and Singapore. Known as the most successful homegrown retail stores, Giordano is a pioneering company that participated in drafting of code of practice in the retailing scene and introduced innovations such as the total shopping experience where customers are greeted individually in the doorstops and bade goodbye unto when leaving the store. Envisioning itself in making people feel good while looking great, the companys main strategy is its For the People philosophy wherein quality, knowledge, innovation, service and simplicity are at the core. As an apparel of choice, Giordano is also committed in providing simplicity of design, quality workmanship, attentive customer service and value-for-money, allowing the company to strongly build its own loyal following (Giordano 2008). Though the four brands Giordano Ladies, Giordano Concepts, Giordano and Giordano Junior are constantly profitable, the weakness is that Giordano has a limited range of products and that consumers may grew tired of the existing concepts. 3) Muji Ryohin Keikaku, better known as Muji, is an outgrowth from The Seiyu, Ltd. In becoming a separate brand, Muji develops range of apparel, household goods and food that takes pride on being functional, simple and of high quality. Literally means no brand, the over 700 Muji products observes the philosophy of simplicity. Primarily purporting an individualistic and diversified lifestyle, Muji follows three processes that is said to be the reason for proving good quality products at lower prices. These are selection of materials, streamlining processes and simplification of packaging. The companys emphasis on preventing materials wastage and improvement of essential product quality as well as time and labor optimisation are the key in achieving operational effectiveness and efficiency. The selection of materials is a very important stage for Muji where suitable raw materials are the main concern. Bulk buying is a strategy wherein quality is the indispensable criterion, underpinning the possibility of producing high quality, low prices products. Thereby, the weakness is on changes in demand and supply of raw materials. Standards at manufacturing stages are also under close scrutiny in order to eliminate waste and reduce cost. When it comes to packaging, Muji sticks to the simplicity philosophy, bearing only product related information and the price tag (Ryohin Keikaku Co., Ltd.). International Competitors 4) Gap Gap, Inc. and United Colors of Benetton are the two international competitors for UNIQLO. Gap, Inc. has been officially incorporated in 1988 as a global specialty and outlet store which offers casual apparel, accessories and personal care products. Gap, Banana Republic, Old Navy and Piperlime are the four primary brands. As a way of building the value of the brands, Gap is very fastidious with brand development, ensuring that value will be integrated from product design to distribution onto marketing, merchandising and shopping environments. The strong point of Gap is its continuous commitment in enhancing the brand; in fact, Gap has an intensive portfolio of brands covering classically styled, high quality, casual apparel at moderate prices for virtually all ages. However, the weakness is on inventory turnover. Emphasising style, quality and good value, Gap embraces a shopper friendly environment where store facades vary depending on selling season, size and location of the store. J ust like UNIQLO, Gap is never threatened of closing under-performing stores and expanding and remodeling existing stores (Gap Annual Report 2006). 5) Benetton A global clothing brand which is based in Treviso, Italy, the name Benetton originated from the Benetton family who founded the company in 1965. Now in existence in over 120 countries, Benetton started with only 5 stores in 1979 which were bounded to reach 800 stores today. The 5, 500 network of contemporary stores worldwide are the reason for generating a total turnover of 2 billion euro. Fashion apparel is the core business wherein quality, style and passion through the brands such as United Color of Benetton, Sisley, Playlife and Killer Loop are the main concerns. Mixing energy, colors and practicality, Benetton offers a portfolio of products for men, women and kids. The strength is in its innovation and IT integration in producing 160 million garments annually. At Benetton, superior product quality is achieved through committing every stage of the production process with innovation and creativity. The weakness is on the tendency for incoherent diversification (Benetton website 20 08). Common to all the competitors of UNIQLO, either domestic or international, is the international expansion strategy known as the judo strategy or the conscious decision to move rapidly into new markets where there is uncontested ground.(Hilburt-Davis 2002), and providing the best value of money based on distinct brands. Product differentiation, low cost production and gateway market penetration like UK and the Mainland are other strategies that these competitors pursue, in the same way like UNQILO is doing. It is important that brands must conform to the needs of the customers of varying age structures and preferences and producing brands where value was mounted from the very first step. Quality and customer service are the main concerns, followed by style or design and functionality. Brand development and building brand awareness as well as the overall look of the establishment are also the priorities. Common also to Bossini and Gap is the closure of unproductive stores/outlets while Benetton takes pride in its IT integration in production. Bossini also engages in dual-branding in terms of marketing. Since it is also common to all of these competitors to conceptualised product portfolio, the weaknesses are on incoherence in diversifying the products, apart from inventory turnover and focusing on core markets. Typically, when these scenarios happen production will be affected and it would not be advisable for those companies which are into bulk buying especially that the styles are immediately paced out. For UNIQLO, the weaknesses of the domestic and global competitors could be reaped off as new strategies and the strengths could be manipulated as new advantages. The UNIQLO could be upgraded in opening flagships stores in every gateway market so as to equally diversify brands and gateway locations, catering to all forms of demographics. For UNIQLO, product mix and shopping spree would be plausible especially if it will come in bolder shades, with better quality and cheaper prices, but are manufactured based on forecasted demands. To take advantage of the opportunities that competitors impose, UNIQLO must also open its horizon into new product trends including the silver market and the plus-size market as part of the brand concepts. Although all of the competing companies including UNQILO are into casual, everyday wear, what will set UNQILO apart from them is the potential of easy care clothing where fabrics are very fluid and/or wrinkle free. Internal Analysis SWOT Analysis 1) Strengths UNIQLO was deemed successful because of its commitment in divergence which supports the individuality of each family member as well as those with fashion-forward and edgy people. These products are of expected high quality because of the effective global materials procurement. Given this, UNIQLOs products are designed parallel with the customer requirements and worldwide markets trends. Voice of the Consumer (VOC) is one of the key in building the most effective brands. For UNIQLO, however, this is not enough, it should be joined with direct engagement in value chain process and doing it through a low-cost, quality-driven manner. In the post production stage, it is also important for UNQILO to obtain effective distribution management and inventory control. UNIQLO is an expert in store development thereby efficient store operation in addition. 2) Weaknesses Japan and Fast Retailing are devoted in simple, functional clothing with minimalist clothing details rather than cutting edge, extravagant clothing. This is the mark of UNIQLO, but could also be its major weakness in penetrating fashion-oriented places such as London, Paris and New York whereby fashion element of UNIQLO products are very limited. Another weakness is that UNIQLO belongs to a multi-layer distribution structured industry; distribution digestibility is hard, leading to clogging in distribution inventory. UNIQLO is also originally designed for low-end consumers and that they will face a head-to-head competition with all kinds of market such as high end, high street, ethical consumers and cut-price shoppers when operating abroad. In some places, profitability is largely determined by the opportunities of retail season like back-to-school and holidays. In both cases, UNIQLO must already acquire the necessary managerial and operational competences prior to establishing a pre sence in these places; but in the case that UNIQLO would not be able to tap on being responsive enough to these threats; this will impact the business results. 3) Opportunities Belonging to an industry where fashion and apparel market trends are unending, UNIQLO is operating in a global business where companies direction and business activities are always expanding. Globalisation provides the apparel industry with grater simultaneity with the help of technology, facilitating the exchange of information with speedier level. Because of interdependence, free trade zone has also seen as profitable because fashion, textile and apparel markets became borderless. While also making larger profits, UNIQLO could invest in social influence or its corporate social responsibility. Whats left for UNQILO is to grab the opportunity of a faster information and knowledge transfer from these locations through a full force IT integration including the customers. The teenager market is also another opportunity the UNIQLO could exploit since this group is very meticulous in value shopping and they have preferences of where to shop and how to shop. 4) Threats Changes in economic conditions, changes in consumption trends and intense competition are just three of the treats that UNQILO, and all other apparel firms, is currently facing. Foreign currency affects the business conduct of UNIQLO because of the locational position of the operations. Johnson and Scholes (2002) relate that strategic positioning is an imperative in realising the strategic capabilities of organisations. UNIQLO has a geographically dispersed operation: fashion designers are in Tokyo, New York and Paris, garnering first hand information in fashion trends; manufacturing departments are in China where cheap labors reside; headquarter is still in Japan which takes responsibility in strategic decision making. Labor and materials could fluctuate depending in the performance of yen comparable to US dollars. In events that the economy of either one of the mentioned locations drifts, UNIQLOs operation will be shaken. In addition, the apparel industry where UNIQLO plays as a ma jor player is contaminated with customers influences where the possibility of switching brands is always a possibility. Conclusion Described as the equivalent of Gap, UNIQLO is increasingly becoming known in the global apparel industry. UNIQLO continued to be a brand of preference because of the quality, simplicity, functionality and cheaper prices of the merchandises. Although UNIQLO is politically influenced by CEPA and US-China memorandum, UNQILO invests only on opportunities that are profitable, advantageous and will purport the continuous geographic expansion of the company. UNIQLO has an advantage when it comes to individual spending basically because clothing is a basic need. While at it, however, UNIQLO must not ignore the social aspects of doing business which is to provide people empowerment when it comes to giving to the government through tax. The company is also committed in enhancing customer service through acquiring the VOC. Entering the apparel market is relatively easy; however, new entrants must face the challenges of building brand awareness and coping with the emergences of new trends. There are at least five major rivals for UNIQLO Bossini, Giordano, Muji, Gap and Benetton. All these rivals are involved in continuous product differentiation since, depending on the fashion trends, substitutes could instantly emerge. Because of the SPA model, UNIQLOs processes are inherently rare; sense of ownership in process responsibilities is the key. The pile em high, sell em cheap concept, as well, is an attribute unique to UNIQLO. In sum, the prevalent strategy at UNIQLO is the continuous domestic and global expansion and low cost production and management, achieved through continuous strengthening of the already reputable brand, ownership of processes, obtaining the VOC, sound distribution and inventory control and efficient store operations. To evaluate, the current strategies of UNIQLO are providing the business with immense profitability and growth. However, UNIQLO already has a record of mistake in focusing more and prioritising international expansions; thus hurting the reputation of the company specially in terms of managerial capacity, expertise and competence. There remains the fact that the products lag behind the quality of the products generated from the fashion centers of the worldwide considering that designers are already in that places. A fact also is that UNIQLO has an immature experience curve in aspects of global market penetration. Shutting down of 16 of the 20 stores in the UK in 2001 and 3 stores in New Jersey are clear-cut evidences of the incompetence on the side of UNIQLO. Global integration proved to be futile especially because UNIQLO is easily shaken up by global economic changes. UNIQLO admits that the closure of the New Jersey stores is because of the recent recessions and investment drifts in the US. In the UK, stores faced closure because of the failure to recognise the consumer preferences of Britons, which are very different with that of Asians and Japanese per se. There are two recommendations for UNIQLO: Asian market integration and establishment on an online shopping site. The first centers the idea that UNIQLO is an Asian product and must be initially offered to Asian consumers. The appreciation of Asian consumers, though they also vary depending on individual cultures, would be much higher compared to that of the Westerners. There are several fashion or brand oriented countries in Asia that UNIQLO has yet to discover such as the Philippines, for instance. Filipinos consider clothing as a staple and the apparel industry in the country is a booming industry. Nonetheless, Filipinos have the invest in quality perception where quality is the primary concern and price is secondary; but if there are products that combine these two features, it will be much appreciated. In addition, export costs would be limited. Online retailing is a proven successful endeavor. Different types of markets and industries are growing because of globalization and the introduction of new information technologies, as well as the pioneer which is the Internet. The key requirements are now centered in quality, speed-to-market, flexibility, innovation, networks, customer service and customization. Internet advertising or sometimes called, as web advertising is a type of advertising in which a person can co Strategic Management at UNIQLO Strategic Management at UNIQLO Introduction Dubbed as Japans retail success story in the new millennium, UNIQLO is a 100% consolidated subsidiary of Fast Retailing Co. Ltd, a Japanese retail holding company. UNIQLO formed the portmanteau for à ¢Ã¢â€š ¬Ã‹Å"unique and à ¢Ã¢â€š ¬Ã‹Å"clothing as am emblem of creativity and individuality of Japanese apparel industry. UNIQLO offers fashionable and high quality clothing at reasonable prices, and was seized as an opportunity to establish a brand position domestically and internationally, combining all the facets of the business from product design to final sales and the operation of the 790 stores around the globe. Primarily offing for a highly brand conscious consumer group, UNIQLO envisions itself as a leading global casual wear company targeting high sales and profitability growth. For UNIQLO, such aim could materialise based on the established strategies such as low cost management, cheapest manufacture and marketing schedules and prioritising customer requirements. Today, UNIQLO is described as the apparel giant Gap, Inc.s counterpart based on the 4, 000% share price increase, making UNIQLO as Japans third largest clothing retailer. However, it is not always victory for UNIQLO; the subsidiary also has its own share of downturns especially on its international expansion. For instance, expansion programmes in the United Kingdom (UK) saw a tumultuous stumble in profits, forcing Fast Retailing to shut down 16 of the 21 UNIQLO stores opened, because of competition. Most recently, three UNIQLO stores in New Jersey were also closed because of economic slumps. Despite these facts, UNIQLO maintains the spirit and still believed that the brand has only but way forward. How UNIQLO will going to do such is central to this paper, focusing on the companys strategic management. External, industry and competitor analysis as well as the internal environment will be addressed. External Analysis Political Analysis Political factors have direct impact on business conducts and operations. Decisions made by the affects the decision-making of retailers and could come in the form of policy or legislation. In Hong Kong, the à ¢Ã¢â€š ¬Ã‹Å"one country, two systems is the prevalent governance philosophy which endows the special administrative region with a high degree of autonomy and its capitalist economic system. Within a capitalistic and free market-oriented economy, retail companies make the majority of microeconomic decisions but they have to conform to specific agreements. Mainland and HK Closer Partnership Economic Arrangement (CEPA) and the US-China Textile Memorandum of Understanding are two examples of this. The former provides UNIQLO with a tariff-free treatment, stating that products which have no existing CEPA rules of origin will enjoy tariff-free treatment upon applications by local manufacturers. The latter could provide UNIQLO with an opportunity for an annual growth of 8-17% in 21 c ategories of Chinese textiles and clothing exports to the US. Labor and customary regulations as well as code of conducts are also complied into including China Social Compliance 9000 and US and EU quotas (RSCA 2006; Doshi 2006). Economic Analysis Domestically and globally, businesses are also being affected by economic factors whereby a strong economy indicates positive results and weak economy signifies the opposite, affecting both businesses and consumers. Hong Kongs gross domestic product is estimated at US$206.7bn with the service sector that contributes 90% of the total GDP. The region is also named as the worlds eleventh largest trading entity. Almost 50% of the total population is employed full-time and the unemployment rate has a continuous average decline by 4.1%, making disposition of income a possibility, a lower cost of living that is (Monthly Digest 2008). Spending is generally devoted for food, housing, healthcare, transportation, amusement, services and apparel. People nowadays are very particular with à ¢Ã¢â€š ¬Ã‹Å"investing in quality clothing thereby resume spending with premium apparel finds (Doshi 2006). Realising this, the price and quality characteristics of UNIQLO has a strategic fit; UNIQLO makes peo ple look fashionable and confident in world-class clothes at a reasonable price through the company-wide integration of the Specialty Store Retailer of Private Label Apparel (SPA) model, a low-cost but effective operation model. Social Analysis Demography or the population characteristics may determine buying patterns and that understanding demographic changes within a particular region or place facilitates determining whether products and services would appeal to customers as well as the number of potential customers (Barney and Hesterly 2006, p. 35). Hong Kong has a total of 6, 985, 300 population based on 2008 estimate and is continuously growing due to immigrant influx from Mainland. According to Doshi, people in HK and elsewhere have a growing interest in private labels. Consumers aspired for having private levels on everyday garments. Casual wear from HK which is known for good design and quality has a positive image on global consumers. Nevertheless, international brands are concentrated in high-end consumers while domestic brands are for low-end consumers (Doshi, 2006). In taking advantage of the wealth of the demography, UNIQLO makes effort on providing high-quality merchandise and generating values to the society by taxes. Further, UNIQLO is a company that is committed in creating positive reputation as manifested in its vision and mission, styles of management, ways of doing business and requirements to employees. Technological Analysis Technological innovations are a priority for the apparel retailing industry but it will remain as labor intensive as it is today. Boosting the industrys productivity, increased in automation has been the recent trend but it is limited on specific functions, to which mostly require human intervention such as sewing and making patterns. Although there are computerised sewing machines that increase the productivity and reduce training time. Further, the uses of computer system software intended for the industry will be on making rough sketches, printing detailed designs and storing of information for easy retrieval. The customer orientation of UNIQLO was basically construed from its website in which customers can give feedbacks by email and discussion board. Hong Productivity Council made a report disclosing that the apparel industry could make sense of information technology (IT) if utilise for order processing, costing analysis, order tracking, material management, reporting and conn ectivity (2004). Industry Analysis Porters Five Forces Analysis A) Threat of Entry Barney and Hesterly (2006, p. 43) point out that new entrants are the firms which have either recently begun operations or those that threaten to begin operations within an industry soon. Notably, the apparel industry is a buyer-driven industry where producers are considering buyers decision-making especially when brand names enter the picture. These buyer-centric industries have low barriers to entry mainly because of intense competition. Utilising brands as a market power source; however, this is a challenge for every clothing company. In the clothing business, mass customisation has seen to be the most effective strategy. Putting strategises into action remains to be in resilience today (Culpan 2002). Therefore, the focus must be on minimising the costs without sacrificing quality and to do this, managerial know how is a must in order to understand interactions with suppliers and consumers, to facilitate creativity and innovation and to maintain mobility in adapting to new market demands (Kincade, Regan and Gibson 2007). Building brand awareness and consumer loyalty is a costly endeavor since it involves advertising needed not only to promote the brand but also on sustaining awareness and loyalty. Strengthening brand names also requires that there are à ¢Ã¢â€š ¬Ã‹Å"quick response programs to increase revenues and manage risks. One of UNIQLOs major resources is its brand name, which is now synonymous with comfortable, high quality and cheap clothing merchandises. Although brand awareness outside the home country is a challenge, it is of intangible value to UNIQLO as a business asset. Brands are valuable and rare and reputable brands are acquired through the impressions one has of the company, and its products or services. Since a brand name is built overtime it becomes costly to imitate thereby providing a sustainable competitive advantage in the apparel industry (Groucutt, Lydley and Forsyth 2004, p. 285). B) Threat of Rivalry Either in home or host countries, apparels, accessories and merchandise will always have a competitor which usually fluctuates in size. The modern market trends for the apparel industry are globalisation and intensified competition, increasing price and lower profit margin pressures, small quantity with high complexity orders, shorter lead times, multiple location operation, changing customer requirements and liberalisation on textile and clothing quota that creates new market dynamics. Being responsive to these market trends shifts the focus of the apparel industry for more extensive product development and improvements at the least possible cost. Such condition forces companies to divert on product differentiation because of high switching cost. In an industry where products are deemed to be à ¢Ã¢â€š ¬Ã‹Å"equal, the key sources of differentiation are brand image, reputation and prior existence (Byoungho 2004b). For UNIQLO, the products themselves are an important source of compet itive edge. UNIQLO strives at developing products of high quality, in various collections to enable the company to reach the highest possible number of customers. As such, the rivals would be endangered when it comes to introducing innovative products. UNIQLO is positioned in the fashion capitals of the world for the purpose of taking advantage of the new information about fashion trends. UNIQLOs ability to quickly adapt to trends and new markets has helped them develop product differentiation, something that is key to the companys success in the apparel industry. According to Tokle (1990), product differentiation is what separates the top competitors from the rest, but it something that is not costly to imitate. This is why their product differentiation is only a temporary competitive advantage. Competitive advantage could be achieved once the organisation learns to manage its capabilities that the end consumers could appreciate and competitors would find difficulties imitating (Po rter 1985; Roney 2004). C) Threat of Substitutes Casual wear is very particular with loose-fit, comfortable and relaxed fit. Athletic or active wear was perceived to be the closest substitute to casual wear as manifested by the booming athletic wear industry. Typically worn as casual fashion clothing, active attires could provide deterrence in the industry. Moreover, the blurring demarcation on the casual clothing family could be also seen as an opportunity for substitutes. Specialised stores offer semi-casual, smart casual and business casual lines. Semi-casual clothes are less presentational than informal but are not as loose as casual dresses. Smart casual purports conservative looks but with harmony on colors, fabrics, shoes and accessories. Business casual, on the other hand, varies in definition but the common element is the collar. Realising this, the bottomline now is the price. Moreover, based on the SPA business model, all the necessary functions at UNIQLO falls under a single umbrella especially the inbound logistics an d the production. UNIQLO is an example of a cut-make-trim company in which in which the company purchase the fabric and retain ownership of the raw materials and work-in-process, and so making it hard for rivals to imitate or produce substitutes for UNQILO brands. D) Threat of Suppliers The prices and availability of commonly used fabrics such as cotton, blends, synthetics and wools might fluctuate significantly due to its dependence on demand, crop yields, weather, supply conditions, transportation costs, government regulations and economic condition among others (Byoungho 2004a). Quota is the major factor that affects the demand and supply of textile and fabrics. Even though the sale of raw materials is standardised, independent contractors, raw material suppliers, importers and apparel manufacturing firms could not isolate themselves from such scenario because of the prospective unsteadiness in the supply chain (Chetty 1999). As well, because of forward vertical integration, coupled with the low barrier to entry, suppliers could easily become rivals. In becoming threat of entry, suppliers could be also become a competitor to already established apparel manufacturers. In addition, contractors is also one of the threats when the demand of the labor increases, it w ill cause labor costs price inflation. Laszlo (2008) stress that there are five main parts of the apparel value chain including raw material supply, provision of components; production networks; export channels and marketing networks at the retail level. Through the process, UNIQLO has an ownership on production and thereby a complete control on the supplies procurement. UNIQLO insources its production and handles the majority of the operational details. Sourcing is a go-to in the apparel industry but it is not rare although it can add value to UNIQLO. E) Threat of Buyers Reaching more and diverse consuming group, the apparel industry is both a stable and unstable industry. Stable because quality price and quality products are the main element and unstable because there are many factors that affect both price and quality. In the point of consumption, for instance, there are à ¢Ã¢â€š ¬Ã‹Å"middle men such as the retail stores that offer an array of brands. In purchasing manufactured apparel, retail stores could have influence on making significant requirements and demands on their purchase, affecting prices. Though quality is inherent, prices would not be reasonable at all, and alternative clothing is readily available. This explains why apparel manufacturing companies are setting up their own stand along stores which will cater to their own produce. Important is that apparel stores must not fall dependent on s specific class of customer. Buyers are increasingly appearing to prefer above standard apparel with a much lower cost, making apparel less dif ferentiated. When selling directly to consumers, buyers would incur a significant portion of their dispensable cash. Same goes with retail store, they purchase apparel at the least possible final cost, but adds up to prices of apparel. UNIQLO is involve in selling to the customers through specialty store marketing, with a minimalist strategy of pile em high, sell em cheap concept that is. In addition, the unbranded fashion or the no-logo concept was perceived to be the main reasons for peoples warm attention (Williamson 2007; Parrish, Cassill and Oxenham 2006). Competitor Analysis Local Competitors 1) Bossini There are three competitors for UNIQLO: Bossini, Giordano and Muji. Bossini International Holdings Limited is an apparel brand owner, retailer and franchiser nestled in Hong Kong. From its onset in 1987, Bossini continued to grow both domestically and internationally. Today, the global distribution network is comprised of 551 directly managed and franchised outlets in Mainland, 322 export franchised outlets, 178 directly managed outlets in Hong Kong, Taiwan, Singapore and Malaysia and 1, 051 outlets in 20 countries. Taking pride on its Bossini brand that is comfortable, easy to mix-and-match, colorful and energetic like the à ¢Ã¢â€š ¬Ã‹Å"Family-Fit brand, Bossini was able to cater to various consumer requirements in a value for money fashion (Bossini Annual Report 2006/2007). The strength of the brand and the people was drawn from the seven practices: face reality, keep it simple, act with the speed of light, set stretch goals, drive quality, create and sustain a learning organisation and keep the A, nurture the B and discard the C. Through this set of practices, Bossini puts emphasis on quality, efficiency and profitability as a source of competitive edge. The company is also continuously building brand awareness by means of innovative cross-regional marketing activities. In enhancing its supply chain, Bossini shorten the product cycle from design to store and will continue to build string ties with them in a proactive manner. Building up an IT system is a strategy meant to drive future growth and profitability. Though the company deals with closure of unsuccessful outlets whenever necessary to divert their attention to areas which needs a closer concentration and with participating in broad campaigns and dual-branding to promote the products and to exp and market reach, Bossini is more focused on its four core markets. 2) Giordano Established in 1981, Giordano is one among the popular and established casual apparel retailer in Asia Pacific Region which employs about 11, 000 staff with over 1, 895 shops operating in 30 territories worldwide. From its restructuring from 1986, the company prepared for international expansion, which was made possible by the initial success in Hong Kong, Mainland and neighboring countries such as Taiwan and Singapore. Known as the most successful homegrown retail stores, Giordano is a pioneering company that participated in drafting of code of practice in the retailing scene and introduced innovations such as the total shopping experience where customers are greeted individually in the doorstops and bade goodbye unto when leaving the store. Envisioning itself in making people feel good while looking great, the companys main strategy is its à ¢Ã¢â€š ¬Ã‹Å"For the People philosophy wherein quality, knowledge, innovation, service and simplicity are at the core. As an apparel of choice, Giordano is also committed in providing simplicity of design, quality workmanship, attentive customer service and value-for-money, allowing the company to strongly build its own loyal following (Giordano 2008). Though the four brands Giordano Ladies, Giordano Concepts, Giordano and Giordano Junior are constantly profitable, the weakness is that Giordano has a limited range of products and that consumers may grew tired of the existing concepts. 3) Muji Ryohin Keikaku, better known as Muji, is an outgrowth from The Seiyu, Ltd. In becoming a separate brand, Muji develops range of apparel, household goods and food that takes pride on being functional, simple and of high quality. Literally means à ¢Ã¢â€š ¬Ã‹Å"no brand, the over 700 Muji products observes the philosophy of simplicity. Primarily purporting an individualistic and diversified lifestyle, Muji follows three processes that is said to be the reason for proving good quality products at lower prices. These are selection of materials, streamlining processes and simplification of packaging. The companys emphasis on preventing materials wastage and improvement of essential product quality as well as time and labor optimisation are the key in achieving operational effectiveness and efficiency. The selection of materials is a very important stage for Muji where suitable raw materials are the main concern. Bulk buying is a strategy wherein quality is the indispensable criterion, underpinning the possibility of producing high quality, low prices products. Thereby, the weakness is on changes in demand and supply of raw materials. Standards at manufacturing stages are also under close scrutiny in order to eliminate waste and reduce cost. When it comes to packaging, Muji sticks to the simplicity philosophy, bearing only product related information and the price tag (Ryohin Keikaku Co., Ltd.). International Competitors 4) Gap Gap, Inc. and United Colors of Benetton are the two international competitors for UNIQLO. Gap, Inc. has been officially incorporated in 1988 as a global specialty and outlet store which offers casual apparel, accessories and personal care products. Gap, Banana Republic, Old Navy and Piperlime are the four primary brands. As a way of building the value of the brands, Gap is very fastidious with brand development, ensuring that value will be integrated from product design to distribution onto marketing, merchandising and shopping environments. The strong point of Gap is its continuous commitment in enhancing the brand; in fact, Gap has an intensive portfolio of brands covering classically styled, high quality, casual apparel at moderate prices for virtually all ages. However, the weakness is on inventory turnover. Emphasising style, quality and good value, Gap embraces a shopper friendly environment where store facades vary depending on selling season, size and location of the store. Just like UNIQLO, Gap is never threatened of closing under-performing stores and expanding and remodeling existing stores (Gap Annual Report 2006). 5) Benetton A global clothing brand which is based in Treviso, Italy, the name Benetton originated from the Benetton family who founded the company in 1965. Now in existence in over 120 countries, Benetton started with only 5 stores in 1979 which were bounded to reach 800 stores today. The 5, 500 network of contemporary stores worldwide are the reason for generating a total turnover of 2 billion euro. Fashion apparel is the core business wherein quality, style and passion through the brands such as United Color of Benetton, Sisley, Playlife and Killer Loop are the main concerns. Mixing energy, colors and practicality, Benetton offers a portfolio of products for men, women and kids. The strength is in its innovation and IT integration in producing 160 million garments annually. At Benetton, superior product quality is achieved through committing every stage of the production process with innovation and creativity. The weakness is on the tendency for incoherent diversification (Benetton website 2 008). Common to all the competitors of UNIQLO, either domestic or international, is the international expansion strategy known as the judo strategy or the conscious decision to move rapidly into new markets where there is uncontested ground.(Hilburt-Davis 2002), and providing the best value of money based on distinct brands. Product differentiation, low cost production and gateway market penetration like UK and the Mainland are other strategies that these competitors pursue, in the same way like UNQILO is doing. It is important that brands must conform to the needs of the customers of varying age structures and preferences and producing brands where value was mounted from the very first step. Quality and customer service are the main concerns, followed by style or design and functionality. Brand development and building brand awareness as well as the overall look of the establishment are also the priorities. Common also to Bossini and Gap is the closure of unproductive stores/outlets whil e Benetton takes pride in its IT integration in production. Bossini also engages in dual-branding in terms of marketing. Since it is also common to all of these competitors to conceptualised product portfolio, the weaknesses are on incoherence in diversifying the products, apart from inventory turnover and focusing on core markets. Typically, when these scenarios happen production will be affected and it would not be advisable for those companies which are into bulk buying especially that the styles are immediately paced out. For UNIQLO, the weaknesses of the domestic and global competitors could be reaped off as new strategies and the strengths could be manipulated as new advantages. The UNIQLO could be upgraded in opening flagships stores in every gateway market so as to equally diversify brands and gateway locations, catering to all forms of demographics. For UNIQLO, product mix and shopping spree would be plausible especially if it will come in bolder shades, with better quality and cheaper prices, but are manufactured based on forecasted demands. To take advantage of the opportunities that competitors impose, UNIQLO must also open its horizon into new product trends including the silver market and the plus-size market as part of the brand concepts. Although all of the competing companies including UNQILO are into casual, everyday wear, what will set UNQILO apart from them is the potential of easy care clothing where fabrics are very fluid and/or wrinkle free. Internal Analysis SWOT Analysis 1) Strengths UNIQLO was deemed successful because of its commitment in divergence which supports the individuality of each family member as well as those with fashion-forward and edgy people. These products are of expected high quality because of the effective global materials procurement. Given this, UNIQLOs products are designed parallel with the customer requirements and worldwide markets trends. Voice of the Consumer (VOC) is one of the key in building the most effective brands. For UNIQLO, however, this is not enough, it should be joined with direct engagement in value chain process and doing it through a low-cost, quality-driven manner. In the post production stage, it is also important for UNQILO to obtain effective distribution management and inventory control. UNIQLO is an expert in store development thereby efficient store operation in addition. 2) Weaknesses Japan and Fast Retailing are devoted in simple, functional clothing with minimalist clothing details rather than cutting edge, extravagant clothing. This is the mark of UNIQLO, but could also be its major weakness in penetrating fashion-oriented places such as London, Paris and New York whereby fashion element of UNIQLO products are very limited. Another weakness is that UNIQLO belongs to a multi-layer distribution structured industry; distribution digestibility is hard, leading to clogging in distribution inventory. UNIQLO is also originally designed for low-end consumers and that they will face a head-to-head competition with all kinds of market such as high end, high street, ethical consumers and cut-price shoppers when operating abroad. In some places, profitability is largely determined by the opportunities of retail season like back-to-school and holidays. In both cases, UNIQLO must already acquire the necessary managerial and operational competences prior to establishing a pr esence in these places; but in the case that UNIQLO would not be able to tap on being responsive enough to these threats; this will impact the business results. 3) Opportunities Belonging to an industry where fashion and apparel market trends are unending, UNIQLO is operating in a global business where companies direction and business activities are always expanding. Globalisation provides the apparel industry with grater simultaneity with the help of technology, facilitating the exchange of information with speedier level. Because of interdependence, free trade zone has also seen as profitable because fashion, textile and apparel markets became borderless. While also making larger profits, UNIQLO could invest in social influence or its corporate social responsibility. Whats left for UNQILO is to grab the opportunity of a faster information and knowledge transfer from these locations through a full force IT integration including the customers. The teenager market is also another opportunity the UNIQLO could exploit since this group is very meticulous in value shopping and they have preferences of where to shop and how to shop. 4) Threats Changes in economic conditions, changes in consumption trends and intense competition are just three of the treats that UNQILO, and all other apparel firms, is currently facing. Foreign currency affects the business conduct of UNIQLO because of the locational position of the operations. Johnson and Scholes (2002) relate that strategic positioning is an imperative in realising the strategic capabilities of organisations. UNIQLO has a geographically dispersed operation: fashion designers are in Tokyo, New York and Paris, garnering first hand information in fashion trends; manufacturing departments are in China where cheap labors reside; headquarter is still in Japan which takes responsibility in strategic decision making. Labor and materials could fluctuate depending in the performance of yen comparable to US dollars. In events that the economy of either one of the mentioned locations drifts, UNIQLOs operation will be shaken. In addition, the apparel industry where UNIQLO plays as a m ajor player is contaminated with customers influences where the possibility of switching brands is always a possibility. Conclusion Described as the equivalent of Gap, UNIQLO is increasingly becoming known in the global apparel industry. UNIQLO continued to be a brand of preference because of the quality, simplicity, functionality and cheaper prices of the merchandises. Although UNIQLO is politically influenced by CEPA and US-China memorandum, UNQILO invests only on opportunities that are profitable, advantageous and will purport the continuous geographic expansion of the company. UNIQLO has an advantage when it comes to individual spending basically because clothing is a basic need. While at it, however, UNIQLO must not ignore the social aspects of doing business which is to provide people empowerment when it comes to giving to the government through tax. The company is also committed in enhancing customer service through acquiring the VOC. Entering the apparel market is relatively easy; however, new entrants must face the challenges of building brand awareness and coping with the emergences of new trends. There are at least five major rivals for UNIQLO Bossini, Giordano, Muji, Gap and Benetton. All these rivals are involved in continuous product differentiation since, depending on the fashion trends, substitutes could instantly emerge. Because of the SPA model, UNIQLOs processes are inherently rare; sense of ownership in process responsibilities is the key. The pile em high, sell em cheap concept, as well, is an attribute unique to UNIQLO. In sum, the prevalent strategy at UNIQLO is the continuous domestic and global expansion and low cost production and management, achieved through continuous strengthening of the already reputable brand, ownership of processes, obtaining the VOC, sound distribution and inventory control and efficient store operations. To evaluate, the current strategies of UNIQLO are providing the business with immense profitability and growth. However, UNIQLO already has a record of mistake in focusing more and prioritising international expansions; thus hurting the reputation of the company specially in terms of managerial capacity, expertise and competence. There remains the fact that the products lag behind the quality of the products generated from the fashion centers of the worldwide considering that designers are already in that places. A fact also is that UNIQLO has an immature experience curve in aspects of global market penetration. Shutting down of 16 of the 20 stores in the UK in 2001 and 3 stores in New Jersey are clear-cut evidences of the incompetence on the side of UNIQLO. Global integration proved to be futile especially because UNIQLO is easily shaken up by global economic changes. UNIQLO admits that the closure of the New Jersey stores is because of the recent recessions and investment drifts i n the US. In the UK, stores faced closure because of the failure to recognise the consumer preferences of Britons, which are very different with that of Asians and Japanese per se. There are two recommendations for UNIQLO: Asian market integration and establishment on an online shopping site. The first centers the idea that UNIQLO is an Asian product and must be initially offered to Asian consumers. The appreciation of Asian consumers, though they also vary depending on individual cultures, would be much higher compared to that of the Wester