Workplace Drug AbuseAmber, an administrative assistant began well, however, started to embrace bizarre and conflicting conduct. Her work was kept up truly well, yet she started arriving late and falling sick frequently, particularly appropriate around the time she got paid. She started borrowing money from others and failing to pay back later. Soon, she began demonstrating an irritability on the telephone with clients. She was caught one-day sniffing white powder which happened to be a cocaine. When confronted she stopped coming to work, leaving a gap in the organisation for a considerable length of time before a substitution could be found. Specialists trust the business’ activities weren’t right, holding up too long to defy Amber, and concentrating on allegations as opposed to scrutinizing conduct straightforwardly identified with work, for example, delay and impoliteness to customers. They likewise bring up that Amber ought to have been sent in for a medical test before being through and through blamed for utilizing cocaine, opening up the open door for recovery rather than a separated tie.Malden Mills CaseIn some cases, making the best decision could easily compare to benefits, an exercise that Malden Mills adapted firsthand. At the point when the industrial facility torched in 1995 only two weeks previously Christmas, production came to a halt and representatives expected they’d be out of work until the point that the processing plant was reconstructed. Yet, CEO Aaron Feuerstein expanded the representatives 90 days at full pay, and also 180 days with benefits at a cost of $25 million to Malden Mills. After the processing plant was modified and the greater part of the uprooted specialists were rehired, collaboration and profitability achieved another high with 40% more business, 95% client and representative maintenance. The creation incremented from 130,000 to 200,000 yards for each week. In any case, from that point forward, Malden Mills has been to liquidation court three times, with a significant part of the obligation fixing to the remake of the industrial facility. Feuerstein made representatives cheerful, certainly, yet business students should examine this case to consider whether striking humanitarian activities will satisfy at last.When Starbucks had to shut outletsIn 2008, Starbucks declared that they would close 600 US stores. Till that point, Starbucks stores had included new contributions, including wi-fi and music available to be purchased, yet begun to lose its warm “neighbourhood store” feeling for a chain store persona. Harvard Business Review brings up that in this circumstance, “Starbucks is a mass brand endeavouring to charge an exceptional cost for an affair that is not any more extraordinary.” Meaning, so as to keep up, Starbucks would either need to chop costs or cut down on stores to reestablish its image selectiveness. HBR’s contextual investigation imparts three issues to the development of Starbucks: estranging early adopters, excessively wide of an interest, and shallow development through new stores and items. Harvard prescribes that Starbucks ought to have remained private, developing at a controlled pace to keep up its status as a top-notch mark.Smaller business and bigger profit shareBig business is appealing, with immense benefits for a few. However, there’s something to be said in regards to an independent company as well, with bringing down hazard and the potential for innovativeness. Darren Robbins of Big D Custom Screen Printing in Austin, TX discovered achievement in his business by seeking after clients with orders both substantial and little. Although Big D began catering just for big requests, the shop sat idle in between until another big order request was received. Through viable booking and transparent pricing, the shop was able to fill in dead occasions with smaller orders. Big D found a benefit in a market share that other nearby screen printers weren’t clamouring to fill. Experts are of the opinion that this was a brilliant methodology, enabling Big D to spread out hazard in their business and offer modified items. Be that as it may, no less than one individual is reproachful of the offering, calling attention to that the speciality has little upside potential, and may hurt the organization’s productivity.Finding the rightful SuccessorFamily Business run by relying on the heir apparent. The companies do not have to go through the ordeal of finding a deserving candidate who would run the institution successfully. However, the situation was different for Carlson companies who did not have any successor to take over the reins. The senior management tried to look both internally and externally for a potential successor. They ultimately found an internal candidate who would work well with the family but also offered plenty of experience as an executive in different industries. According to Beverly Behan of Hay’s Group, Carlson should be commended for not only making the right decision in not hiring the heir apparent but for handling the job search in a calm, effective way.Loss of Knowledge and ExperienceAnother vital retirement issue is one with the loss of experience and information. With the retirement the employees leave the workplace, taking years of expertise and ability all along with them. But American Express found a way to retain these experience and knowledge through their pilot program. AMEX created a team of workers transformation group that would allow retiring members to step by step provide up some of their day to day responsibilities. In return, the person would spend some of this time mentoring and educating classes to successors. This resulted in a phased retirement, permitting personnel to leave steadily and revel in extra time whilst nevertheless taking part in a component of their preceding salary, and regular benefits. This additionally meant that some personnel stayed a year or more previous traditional retirement age. AMEX believes this software is a success, allowing senior personnel to experience their final years of work in a decreased capacity, as properly as educating the current group of workers for future success.Strategic AD SpendingAdvertising can cost a chunk of money to any organisation and the financial conditions might not be conducive to undertake such a huge ad expenditure every time. But forgoing ad spending in favour of better profits can be a mistake. Experts say that in a slump, one of the high-quality things you can do is adopt or enlarge your marketing approach to appeal to customers. During a recession, this is particularly true, as there would be a surge in cutting back on the ad spending by many organizations, make your voice even extra outstanding to customers. After seven years of boom, increasing from 30 to 300 locations, Firehouse Subs’ boom fizzled, and organization leaders realized they had to come up with a solution. So they returned local advertising fees collected from franchisees, not to put in their pockets, but to take hold of their own local marketing. Consequently, sales fell, even more, revealing that this was not an appropriate strategy at the time. Firehouse reclaimed their local marketing fee, and then gave franchisees the option to take part in a new marketing campaign, requiring them to pay double for local marketing, but in return, becoming part of an $8 million advertising campaign poised for success. Experts commend Firehouse for having the courage to ask franchisees for more money where it was needed, even when times were tough.Tylenol’s 1982 ScandalIn 1982, seven people in Chicago died after taking Tylenol due to an unknown suspect lacing the capsules with cyanide after the products reached the shelves. In the immediate aftermath, Tylenol’s commanding 37% market share dropped to just 7% nationwide, despite the problem being contained to the Chicago area. Tylenol was not responsible for the tampering of the product, but to maintain the product’s reputation, Johnson & Johnson pulled all of the Tylenol from the shelves, absorbing a loss of more than $100 million dollars. Tylenol was successfully reintroduced with tamper-resistant packaging, discounts, and sales presentations to the medical community. The brand survived due to swift action and effective public relations from Johnson & Johnson.Smaller Player takes over the biggerIt’s tough to be the little player, especially when one of the huge players will become your direct competitor. But at Hangers Cleaners, an offbeat photo and suitable consumer carrier helped them pull via when P&G opened eco-friendly dry cleaners in the same town. Hangers differentiated itself thru van shipping service, humorous t-shirts and hangers, as properly as social networking. The agency additionally spent time connecting with the community with the aid of partnering with nearby groups and charities. Instead of out-pricing or out-spending P&G, Hangers embraced its personality and adopted a lifestyle of notable service that customers discovered value in. As a result, Hangers has experienced a surge in its growth whilst different local dry cleaners have witnessed flat or declining revenues.Partnership leads to Market ExpansionTo support new growth, businesses got to expand past their initial client base which is a usually daunting task for little businesses. However, partnering with another successful market player will facilitate businesses to reach a brand new level. Diagnostic Hybrids, specializing in medical nosology, did simply that, partnering with Quidel, a market leader in speedy diagnostic tests. This partnership allowed Diagnostic Hybrids to get a bigger market presence, as well as take advantage of higher analysis and development resources. Although Diagnostic Hybrids was acquired by Quidel, key components of the organization like the same company president and operation as a separate subsidiary remained with them.Tesco’s Korean VentureTesco’s Korean venture can be a perfect case study of creating a market share internationally. The organization made some well strategic moves in their Korean expansion, most relatively partnering with Samsung, the main Korean conglomerate, and embracing the Korean way of life by operating shops as nearby agencies and neighbourhood centres. Tesco additionally made a smart move by way of employing almost a hundred per cent Koreans on staff, with solely 4 British employees out of 23,000. Reports indicate that Tesco’s well-planned method has gained over customers in Seoul, with 25% of Koreans signed up for loyalty cards and income in the billions, discovering success in “crack[ing] the Asian tiger,” where competitors such as Carrefour and Wal-Mart have failed.Triumph in an International MarketTriumph, a British Bike manufacturer gradually faded out of prominence in their home market three decades ago. However, it gained a new life internationally. In 2010, Triumph sold just 7,562 bikes in the UK, but 50,000 worldwide, indicating that an international activity paid off for the company. Triumph’s famous manufacturing facility in Warwickshire closed up shop in 1983, but the Indian factory remained, and these days it has become very popular. The agency struggles to meet demand in India, with a six-month ready list and a new factory being built. India’s middle-income group has embraced the car as a low-cost commodity, even giving them as dowries in weddings. The success of Triumph in India can be another example splendid case study.Background check for job candidatesBackground assessments are a difficulty faced by many companies, as sensitive statistics is now extra public than ever. OfficeDrop was no exception, as the corporation scans paper into digital files, along with personal medical history and minister sermons, most of which require a trustworthy person who can take care of documents discreetly.Many third-party companies provide quick, superficial checks, however, Prasad Thammineni, the proprietor of OfficeDrop was not satisfied, he needed more accurate statistics. He found a company that would allow researchers to delve into a number of different sources and perform a more comprehensive search. There was a opposition from other business owners pointing out that alternative to using Google to perform a historical check, he should have requested their enterprise network who they were using. They also endorsed that he take advantage of free resources, which include on-line searches and checking out social media websites to learn more about job candidates.Proper Utilization of the Human ResourcesWhen Gamal Aziz took the reins of the MGM Grand Hotel & Casino in his hands, he notice that there is a miscommunication between the hotel employees and whatever is going on at the hotel. He found a easy way to fill this gap by engaging the hotel staffs in quick huddles before their shifts to give a brief overview of the days itinerary so that staff could offer more to guests, improving customer loyalty, return visits, and spending. This made considerable returns on the Hotel’s revenue. Experts laud Aziz for differentiating the MGM grand with top quality service from the employees.Twitter and the Creme BruleeMarketing is the key whether one owns a billion dollar enterprise or a setting spring rolls in a chinese van. One can spends a chunk of fortune in doing that but it won’t yield much return until it is done in an effective way. Curtis Kimball, the man in the back of the Creme Brulee Cart, put Twitter to work for him amassing heaps of followers and growing his commercial enterprise by allowing people to follow the cart online. Curtis developed a personal relationships with his followers by asking for their advice of flavours to cart location. Perhaps the most incredible part of this story is the fact that Kimball has no advertising finances (Twitter is a free service), but enjoys an distinctly popular popularity and excessive scores on Yelp.Excessive Variety leads to a Revenue lossHickory Farms started out out with holiday gift baskets including sausage, ham, and cheese at one point had an presenting of 2,500 special products, sprawling the employer and resulting in a loss of favor with customers. Recognizing this issue, Hickory Farms streamlined itself, slashing their range of merchandise from 2,500 to 300 with more modern visuals, descriptions, and other features, such as less packaging and extra recycled content. The organization also overhauled their website, making it easier to save online. All of this streamlining resulted in a charge reduction of 13% that Hickory Farms used to be capable to skip on to their customers. Brand strategist Jennifer Woodbery believes that this was a smart move, making the most of Hickory Farms’ trusted name and image with an effective rebranding of offerings.Maintaining Good Employees ConsistentlyIt often happens that once your best employee is longer the same after promotion. Such was the case for cat shelter Paws Need Families where Della, a cleaner became an assistant manager and was soon promoted to be a manager. She started arriving late, letting applications sit, and slipped on inoculations, all serious offenses. Instead of confronting Della directly, meetings were held, and an assistant manager was hired to compensate for Della’s shortcomings. Ultimately, Della never cleaned up her act, and was fired. Ken Blanchard, co-author of The One Minute Manager believes this situation may want to have been avoided with short meetings and a review or feedback system, with the help of these we can become aware of troubles earlier than they become actual problems.Crisis ManagementIn 2009, Maclaren issued a recall for every stroller it had sold in the US for a decade, which was around 1 million units. The strollers were recalled so that a cover could be mounted to stop amputation of a baby’s fingers, which ought to show up if the toddler were to be in the stroller in the incorrect spot. As a luxury brand, this incident proved to be detrimental even even though it was a case of misuse of the product and not a manufacturing defect. Experts are of the view that Maclaren did take the correct step in the aftermath of the recall, asking for a fast track recall from the Consumer Product Safety Commission, and soon as it started spreading through the press, saving face and in addition embracing a mission of toddler safety.Dealing with late paying clientsWe all hope that clients will pay on time, however, the reality is that most corporations have to deal with lateness at some point or another. How you deal with it can make all the difference, and this case study displays a smart strategy. When a client wrote to check in on the development of work, a web developer answered that she was once hesitant to work quickly for that consumer because she was once nonetheless ready on repayments for month-old work. This right away attracted the attention of the client, who contacted her and located that their cheques were not getting delivered to the proper address. The hassle was solved almost instantaneously, implementing leverage and beneficial positive behavior. However, it was once risky, and the client criticized her for not sharing a warning earlier than coming to a difficult point.Supply Chain DisruptionIn 2000, a fire at the Philips microchip plant affected telephone manufacturers Nokia And Ericsson. The groups reacted in extraordinary ways, and ultimately, Ericsson did no longer do well, quitting the mobile smartphone commercial enterprise and permitting Nokia to win over the European market. While Ericsson had tied up all of its key elements in a single source and decided to wait till the hassle got over, Nokia worked to snatch up spare chips from different plants and suppliers, they also re-engineered some of their telephones to adapt to one-of-a-kind chips from new suppliers. It’s no longer difficult to imagine what was the outcome. Nokia stayed trucking along, whilst Ericsson suffered from months of lost production and sales, permitting the market to be dominated with the aid of Nokia. This incident and fallout is a classic lesson in supply chain risk management.

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Workplace Drug AbuseAmber, an administrative assistant began well, however, started to embrace bizarre and conflicting conduct. Her work was kept up truly well, yet she started arriving late and falling sick frequently, particularly appropriate around the time she got paid. She started borrowing money from others and failing to pay back later. Soon, she began demonstrating an irritability on the telephone with clients. She was caught one-day sniffing white powder which happened to be a cocaine. When confronted she stopped coming to work, leaving a gap in the organisation for a considerable length of time before a substitution could be found. Specialists trust the business’ activities weren’t right, holding up too long to defy Amber, and concentrating on allegations as opposed to scrutinizing conduct straightforwardly identified with work, for example, delay and impoliteness to customers. They likewise bring up that Amber ought to have been sent in for a medical test before being through and through blamed for utilizing cocaine, opening up the open door for recovery rather than a separated tie.Malden Mills CaseIn some cases, making the best decision could easily compare to benefits, an exercise that Malden Mills adapted firsthand. At the point when the industrial facility torched in 1995 only two weeks previously Christmas, production came to a halt and representatives expected they’d be out of work until the point that the processing plant was reconstructed. Yet, CEO Aaron Feuerstein expanded the representatives 90 days at full pay, and also 180 days with benefits at a cost of $25 million to Malden Mills. After the processing plant was modified and the greater part of the uprooted specialists were rehired, collaboration and profitability achieved another high with 40% more business, 95% client and representative maintenance. The creation incremented from 130,000 to 200,000 yards for each week. In any case, from that point forward, Malden Mills has been to liquidation court three times, with a significant part of the obligation fixing to the remake of the industrial facility. Feuerstein made representatives cheerful, certainly, yet business students should examine this case to consider whether striking humanitarian activities will satisfy at last.When Starbucks had to shut outletsIn 2008, Starbucks declared that they would close 600 US stores. Till that point, Starbucks stores had included new contributions, including wi-fi and music available to be purchased, yet begun to lose its warm “neighbourhood store” feeling for a chain store persona. Harvard Business Review brings up that in this circumstance, “Starbucks is a mass brand endeavouring to charge an exceptional cost for an affair that is not any more extraordinary.” Meaning, so as to keep up, Starbucks would either need to chop costs or cut down on stores to reestablish its image selectiveness. HBR’s contextual investigation imparts three issues to the development of Starbucks: estranging early adopters, excessively wide of an interest, and shallow development through new stores and items. Harvard prescribes that Starbucks ought to have remained private, developing at a controlled pace to keep up its status as a top-notch mark.Smaller business and bigger profit shareBig business is appealing, with immense benefits for a few. However, there’s something to be said in regards to an independent company as well, with bringing down hazard and the potential for innovativeness. Darren Robbins of Big D Custom Screen Printing in Austin, TX discovered achievement in his business by seeking after clients with orders both substantial and little. Although Big D began catering just for big requests, the shop sat idle in between until another big order request was received. Through viable booking and transparent pricing, the shop was able to fill in dead occasions with smaller orders. Big D found a benefit in a market share that other nearby screen printers weren’t clamouring to fill. Experts are of the opinion that this was a brilliant methodology, enabling Big D to spread out hazard in their business and offer modified items. Be that as it may, no less than one individual is reproachful of the offering, calling attention to that the speciality has little upside potential, and may hurt the organization’s productivity.Finding the rightful SuccessorFamily Business run by relying on the heir apparent. The companies do not have to go through the ordeal of finding a deserving candidate who would run the institution successfully. However, the situation was different for Carlson companies who did not have any successor to take over the reins. The senior management tried to look both internally and externally for a potential successor. They ultimately found an internal candidate who would work well with the family but also offered plenty of experience as an executive in different industries. According to Beverly Behan of Hay’s Group, Carlson should be commended for not only making the right decision in not hiring the heir apparent but for handling the job search in a calm, effective way.Loss of Knowledge and ExperienceAnother vital retirement issue is one with the loss of experience and information. With the retirement the employees leave the workplace, taking years of expertise and ability all along with them. But American Express found a way to retain these experience and knowledge through their pilot program. AMEX created a team of workers transformation group that would allow retiring members to step by step provide up some of their day to day responsibilities. In return, the person would spend some of this time mentoring and educating classes to successors. This resulted in a phased retirement, permitting personnel to leave steadily and revel in extra time whilst nevertheless taking part in a component of their preceding salary, and regular benefits. This additionally meant that some personnel stayed a year or more previous traditional retirement age. AMEX believes this software is a success, allowing senior personnel to experience their final years of work in a decreased capacity, as properly as educating the current group of workers for future success.Strategic AD SpendingAdvertising can cost a chunk of money to any organisation and the financial conditions might not be conducive to undertake such a huge ad expenditure every time. But forgoing ad spending in favour of better profits can be a mistake. Experts say that in a slump, one of the high-quality things you can do is adopt or enlarge your marketing approach to appeal to customers. During a recession, this is particularly true, as there would be a surge in cutting back on the ad spending by many organizations, make your voice even extra outstanding to customers. After seven years of boom, increasing from 30 to 300 locations, Firehouse Subs’ boom fizzled, and organization leaders realized they had to come up with a solution. So they returned local advertising fees collected from franchisees, not to put in their pockets, but to take hold of their own local marketing. Consequently, sales fell, even more, revealing that this was not an appropriate strategy at the time. Firehouse reclaimed their local marketing fee, and then gave franchisees the option to take part in a new marketing campaign, requiring them to pay double for local marketing, but in return, becoming part of an $8 million advertising campaign poised for success. Experts commend Firehouse for having the courage to ask franchisees for more money where it was needed, even when times were tough.Tylenol’s 1982 ScandalIn 1982, seven people in Chicago died after taking Tylenol due to an unknown suspect lacing the capsules with cyanide after the products reached the shelves. In the immediate aftermath, Tylenol’s commanding 37% market share dropped to just 7% nationwide, despite the problem being contained to the Chicago area. Tylenol was not responsible for the tampering of the product, but to maintain the product’s reputation, Johnson & Johnson pulled all of the Tylenol from the shelves, absorbing a loss of more than $100 million dollars. Tylenol was successfully reintroduced with tamper-resistant packaging, discounts, and sales presentations to the medical community. The brand survived due to swift action and effective public relations from Johnson & Johnson.Smaller Player takes over the biggerIt’s tough to be the little player, especially when one of the huge players will become your direct competitor. But at Hangers Cleaners, an offbeat photo and suitable consumer carrier helped them pull via when P&G opened eco-friendly dry cleaners in the same town. Hangers differentiated itself thru van shipping service, humorous t-shirts and hangers, as properly as social networking. The agency additionally spent time connecting with the community with the aid of partnering with nearby groups and charities. Instead of out-pricing or out-spending P&G, Hangers embraced its personality and adopted a lifestyle of notable service that customers discovered value in. As a result, Hangers has experienced a surge in its growth whilst different local dry cleaners have witnessed flat or declining revenues.Partnership leads to Market ExpansionTo support new growth, businesses got to expand past their initial client base which is a usually daunting task for little businesses. However, partnering with another successful market player will facilitate businesses to reach a brand new level. Diagnostic Hybrids, specializing in medical nosology, did simply that, partnering with Quidel, a market leader in speedy diagnostic tests. This partnership allowed Diagnostic Hybrids to get a bigger market presence, as well as take advantage of higher analysis and development resources. Although Diagnostic Hybrids was acquired by Quidel, key components of the organization like the same company president and operation as a separate subsidiary remained with them.Tesco’s Korean VentureTesco’s Korean venture can be a perfect case study of creating a market share internationally. The organization made some well strategic moves in their Korean expansion, most relatively partnering with Samsung, the main Korean conglomerate, and embracing the Korean way of life by operating shops as nearby agencies and neighbourhood centres. Tesco additionally made a smart move by way of employing almost a hundred per cent Koreans on staff, with solely 4 British employees out of 23,000. Reports indicate that Tesco’s well-planned method has gained over customers in Seoul, with 25% of Koreans signed up for loyalty cards and income in the billions, discovering success in “crack[ing] the Asian tiger,” where competitors such as Carrefour and Wal-Mart have failed.Triumph in an International MarketTriumph, a British Bike manufacturer gradually faded out of prominence in their home market three decades ago. However, it gained a new life internationally. In 2010, Triumph sold just 7,562 bikes in the UK, but 50,000 worldwide, indicating that an international activity paid off for the company. Triumph’s famous manufacturing facility in Warwickshire closed up shop in 1983, but the Indian factory remained, and these days it has become very popular. The agency struggles to meet demand in India, with a six-month ready list and a new factory being built. India’s middle-income group has embraced the car as a low-cost commodity, even giving them as dowries in weddings. The success of Triumph in India can be another example splendid case study.Background check for job candidatesBackground assessments are a difficulty faced by many companies, as sensitive statistics is now extra public than ever. OfficeDrop was no exception, as the corporation scans paper into digital files, along with personal medical history and minister sermons, most of which require a trustworthy person who can take care of documents discreetly.Many third-party companies provide quick, superficial checks, however, Prasad Thammineni, the proprietor of OfficeDrop was not satisfied, he needed more accurate statistics. He found a company that would allow researchers to delve into a number of different sources and perform a more comprehensive search. There was a opposition from other business owners pointing out that alternative to using Google to perform a historical check, he should have requested their enterprise network who they were using. They also endorsed that he take advantage of free resources, which include on-line searches and checking out social media websites to learn more about job candidates.Proper Utilization of the Human ResourcesWhen Gamal Aziz took the reins of the MGM Grand Hotel & Casino in his hands, he notice that there is a miscommunication between the hotel employees and whatever is going on at the hotel. He found a easy way to fill this gap by engaging the hotel staffs in quick huddles before their shifts to give a brief overview of the days itinerary so that staff could offer more to guests, improving customer loyalty, return visits, and spending. This made considerable returns on the Hotel’s revenue. Experts laud Aziz for differentiating the MGM grand with top quality service from the employees.Twitter and the Creme BruleeMarketing is the key whether one owns a billion dollar enterprise or a setting spring rolls in a chinese van. One can spends a chunk of fortune in doing that but it won’t yield much return until it is done in an effective way. Curtis Kimball, the man in the back of the Creme Brulee Cart, put Twitter to work for him amassing heaps of followers and growing his commercial enterprise by allowing people to follow the cart online. Curtis developed a personal relationships with his followers by asking for their advice of flavours to cart location. Perhaps the most incredible part of this story is the fact that Kimball has no advertising finances (Twitter is a free service), but enjoys an distinctly popular popularity and excessive scores on Yelp.Excessive Variety leads to a Revenue lossHickory Farms started out out with holiday gift baskets including sausage, ham, and cheese at one point had an presenting of 2,500 special products, sprawling the employer and resulting in a loss of favor with customers. Recognizing this issue, Hickory Farms streamlined itself, slashing their range of merchandise from 2,500 to 300 with more modern visuals, descriptions, and other features, such as less packaging and extra recycled content. The organization also overhauled their website, making it easier to save online. All of this streamlining resulted in a charge reduction of 13% that Hickory Farms used to be capable to skip on to their customers. Brand strategist Jennifer Woodbery believes that this was a smart move, making the most of Hickory Farms’ trusted name and image with an effective rebranding of offerings.Maintaining Good Employees ConsistentlyIt often happens that once your best employee is longer the same after promotion. Such was the case for cat shelter Paws Need Families where Della, a cleaner became an assistant manager and was soon promoted to be a manager. She started arriving late, letting applications sit, and slipped on inoculations, all serious offenses. Instead of confronting Della directly, meetings were held, and an assistant manager was hired to compensate for Della’s shortcomings. Ultimately, Della never cleaned up her act, and was fired. Ken Blanchard, co-author of The One Minute Manager believes this situation may want to have been avoided with short meetings and a review or feedback system, with the help of these we can become aware of troubles earlier than they become actual problems.Crisis ManagementIn 2009, Maclaren issued a recall for every stroller it had sold in the US for a decade, which was around 1 million units. The strollers were recalled so that a cover could be mounted to stop amputation of a baby’s fingers, which ought to show up if the toddler were to be in the stroller in the incorrect spot. As a luxury brand, this incident proved to be detrimental even even though it was a case of misuse of the product and not a manufacturing defect. Experts are of the view that Maclaren did take the correct step in the aftermath of the recall, asking for a fast track recall from the Consumer Product Safety Commission, and soon as it started spreading through the press, saving face and in addition embracing a mission of toddler safety.Dealing with late paying clientsWe all hope that clients will pay on time, however, the reality is that most corporations have to deal with lateness at some point or another. How you deal with it can make all the difference, and this case study displays a smart strategy. When a client wrote to check in on the development of work, a web developer answered that she was once hesitant to work quickly for that consumer because she was once nonetheless ready on repayments for month-old work. This right away attracted the attention of the client, who contacted her and located that their cheques were not getting delivered to the proper address. The hassle was solved almost instantaneously, implementing leverage and beneficial positive behavior. However, it was once risky, and the client criticized her for not sharing a warning earlier than coming to a difficult point.Supply Chain DisruptionIn 2000, a fire at the Philips microchip plant affected telephone manufacturers Nokia And Ericsson. The groups reacted in extraordinary ways, and ultimately, Ericsson did no longer do well, quitting the mobile smartphone commercial enterprise and permitting Nokia to win over the European market. While Ericsson had tied up all of its key elements in a single source and decided to wait till the hassle got over, Nokia worked to snatch up spare chips from different plants and suppliers, they also re-engineered some of their telephones to adapt to one-of-a-kind chips from new suppliers. It’s no longer difficult to imagine what was the outcome. Nokia stayed trucking along, whilst Ericsson suffered from months of lost production and sales, permitting the market to be dominated with the aid of Nokia. This incident and fallout is a classic lesson in supply chain risk management.

FOR MBA +1 more

by Mohit Jain

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4849 Views 4 years ago

The fast and dramatic changes in information technology specially in last one decade has given new concept of marketing in which buyer and seller do not see each other face to face nor see the goods physically; the whole transaction is carried out with the help of ‘on line’ communication. The entire deal is carried out with the help of computer – telecommunication and net working with associated hardware.In the e – commerce internet provides information about goods and services “It is” a way of conducting imaging and executing business transactions and services through elec­tronic media and networking in computers and communication network, websites, e-mail are resorted.Customers know about goods and services sitting at home. The manufacturers, distributors, suppliers and services providers let the consumers know about their products quality, price, size, color etc. through multi-colored catalogues on website. The consumers can ‘surface various web sites and compare their relative prices, quality characteristic, features etc.These details can be obtained from suppliers around the globe. The websites are available beside for goods for direct selling, context selling, financial and other services such as hospitals, education, training, advertise­ments, property, entertainment, product demonstrations, bill payment, exchange and all other ser­vices which one can think of.The types of selling through the use of internet and other electronic devices can be of following types:Business to Business (B2B):This implies selling by one business manufactures to other business manufactures, trade, wholesaler or retailer. In India as yet most of the e-commerce is B2B. The number of companies like TELCO, IBM, C1TI BANK, BHEL, ESSAR, TVS, MARUTI, BAJAJ, and many others are doing B2B. In 1998 out of total e-commerce of us$ 210 billion us$ 100 billion was accounted for B2B.Business to Consumer (C2B):When business sells to customers/consumers it is called B2C and is most important from our point of view. The products include items sold in departmental stores, chemist shops, grocery stores, books, stationery, clothes, vegetables, fruits and what not. As yet in India such sales are only of US$ 100 billion but are expected to go up to US$ 900 billion by 2005 i.e. the growth of 9000 percent. Many service sectors are adopting this mode.Consumer to Consumer (C2C):Under this system when some consumer want to dispose off his old items, he can take the help of selling through internet. But this type of e-commerce is not very common at least in India and the business is negligible.Business to Government (B2G):Business house or on individual business has to file income tax and sales tax returns and various types of other returns. As yet this requires filing of return in respective office and apply for approval in concerned office. But now many countries allow this type of activity through e-mail/e-commerce. However, as yet this is not being done in India.Government to Consumer (G2C):In order to provide facilities to public and speed up information and records government in many cases provide record of information, through this system; sale of documents, passport forms, copies of returns etc are supplied through e-mail. The main features of e-commerce is that one does not physically feel an item nor sees it and places order on the basis of information supplied through website or in response to consumers inquiry, as yet e-commerce has last preference for daily consumption items.It is largely limited to durable goods like computers, TV’s, automobiles, books, travel reservation. In case of service it is becoming popular for banking and share purchases. The growth of E-commerce is restricted as given in Table 20.1Key players in e-commerce are consumers and sellers.E-mail net work:E-commerce requires visit of website, selection of products, select a payment mode, realization of money (which is done before dispatch) and dispatch of goods.The process may be depicted as under:Visit of website:Selection of a productSelection of payment modeCredit cardE-bankingVP/courier (who collects the payment at the time of delivery, but this is discouraged.Placement of order through e-mailRealization of money.Dispatch to the customer can be on line or through courier.In order that consumer may visit particular website, sellers have to advertise about their website so that consumer may visit the website. The consumer decides which websites have to be visited and after getting the information from various sites he makes a choice and decides which one should be purchased. He then places an order intimating the mode of payment which is generally through credit card or e-banking and advise the bank where he has credit card to debit the amount to his account.After the seller realizes the amount for the goods order he dispatches the goods. In most of the cases whole process takes couple of minutes and goods reaches the consumer within half an hour to one hour if he is a local consumer, it is claimed so by sellers. In India in this business Rediff(dot)com is most popular and sells products worth Rs. 1340 million every month.Advantage to Consumers:The consumer has number of advantages and convenience and therefore the system is becoming popular.Consumer has wider choice not from his town or country but also round the globe unless there are import restrictions.Customized or personalized product and service. For instance if some lady wants a bra of exact size, her size can be measured through internet and stored and she will be supplied bra of her requirement.In case of purchase, one is not required to go from store to store to see the products to collect their details, prices etc. Sitting at home he gets all the required information and that too very fast without spending much time.There is absolute flexibility of time, place and distance is no hurdle; one can open the site any time day or night to get details, there is no problem of shops/stores opening/closing hours. Website can be opened any time. In physical sales place and distance is also a problem which is no problem in e-commerce because one can see sites all over the world without moving out of the house.Goods are available at cheaper price because there are lot of economies of space, rent, interest to the seller Further, he manages with much lesser number of outlets and cost of marketing is reduced. Part of these savings is passed on to consumer and therefore, he gets the products cheaper than from conventional shops/departmental stores, grocers etc.It helps to globalize retail trading. One can buy things without geographical boundaries.It eliminates with the system of distributors, authorized dealers and retailers, the manufac­turer can deal with large territory with one store.The inventory is reduced, and so the cost of carrying goods and distribution cost.Exports to final consumers is possible through e-commerce, not only-just sales but procure­ment, accounts, logistics product development and other related services are also possible through e-commerceThe net enables suppliers to introduce and promote new markets and new products to meet the needs of individual buyers.Long distance, travelling and delays, pollution all are avoided because one has not to travel to the shop.Consumer is better informed about products, price etc and therefore can make better choice.Suppliers, competitors and customers come under one roof through internet websites and massive exhibition of various items is possible.Disadvantages:The biggest disadvantage of e-commerce is that one is not able to see and feel the product.Since consumers are not able to feel and touch the products and therefore business is on trust and as yet business is largely limited to travel, automobiles, PC’s, services, books and CD’s entertain­ment. As yet sales of apparel, food products is largely small percentage of total e-business. For instance in 1999 the maximum ownership of internet was 50 percent in USA, in other countries it varied between 1.8 percent to 45 percent (Table 20.2) But gradually this disadvantage is being reduced but still there is large percentage of population which does not own internet.There is a big problem in on-line payment. It is with regard to time and legality of order to complete the transaction. As yet satisfactory system of payment has not been developed by banks and financial institutions in large number of countries.The electronic signatures acceptance has been legalized by large number of countries but still many more have to take steps in this direction. Further, there are great chances of fraud in-spite of all the precautions.The. e-commerce requires large investment to build a brand image on internet which is esti­mated around us$ 100 million or around Rs. 500 crores which can be invested only by big players. Thus small suppliers cannot get business through internet.The market is restricted to high income and educated population who own and know the use of internet. Thus in poor, illiterate or less educated countries it has limited access.Sometimes there could be flood of orders for any particular product which makes problem of timely supply to consumer. In 2000 there was YK2, problem and customers had to wait to get product of their choice.Consumer has number of problems. He has to search internet/websites information on internet, make the purchase domain and the payment. There are difficulties in searching, surfing, browsing and wandering around the internet which costs both time and money.Privacy of consumer is adversely affected specially in the matter of accounts; he is required to tell his credit card number to supplier or e-banker.E-commerce is good for branded products like automobiles, electronic goods, computers, electrical goods, branded garments, branded food products, music, books etc. If middle class or lower middle class want to buy non branded products which are generally cheaper, they cannot be bought through e-commerce.

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by Mohit Jain

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Financial Management is a related aspect of finance function. In the present business administration financial management is an important branch. Nobody will think over about-business activity without finance implication.Financial management includes adoption of general management principles for financial implementation. The following may be said as the related aspects of financial management raising of funds, using of these funds profitably, planning of future activities, controlling of present implementations and future developments with the help of financial accounting, cost accounting, budgeting and statistics.It acts as guidance where more opportunities for investment is available. Financial management is useful as a tool for allotment of resources to various projects depending on their importance and repayment capacity.James Van Morne defines Financial Management as follows:“Planning is an inextricable dimension of financial management. The term financial management connotes that funds flows are directed according to some plan”. Financial managements can be said a good guide for allotment of future resources of an organisation.Preparing and implementation of some plans can be said as financial management. In other words, collection of funds and their effective utilisation for efficient running of and organization is called financial management. Financial management has influence on all activities of an organisation. Hence it can be said as an important one.Its main responsibility is to complete the finance function successfully. It also has relations with other business functions. All business decisions also have financial implications. According to Raymond Chambers, Management of finance function is the financial management’.However, financial management shall not be considered as the profit extracting device. If finance is properly utilised through plans, they lead to profits. Besides, without profits there won’t be finance generation. All these are facts. But this is not complete.The implication of financial management is not only attaining efficiency and getting profits but also maximising the value of the firm. It facilitates to protect the interests of various classes of people related to the firm.Hence, managing a firm for profit maximisation is not the meaning for financial management. Financial management is applicable to all kinds of organisations. According to Raymond Chambers, ‘the word financial management is applicable to all kinds of firms irrespective of their objectives’.Aims of Financial Management:The aims of financial management should be useful to the firm’s proprietors, managers, employees and consumers. For this purpose the only way is maximisation of firm’s value.The following aspects have place in maximising firm’s value:Rise in profits:If the firm wants to maximise its value, it should’ increase its profits and revenues. For this purpose increase of sales volume or other activities can be taken up. It is the general feature of any firm to increase profits by proper utilisation of all opportunities and plans.Theoretically, firm gets maximum profits if it is under equilibrium. At that stage the average cost is minimal and the marginal cost and the marginal revenues are equal. Here, we can’t say the sales because there must be suitable market for the increased sales. Further, the above costs must also be controlled.Reduction in cost:Capital and equity funds are utilised for production. So all types of steps should be taken to reduce firm’s cost of capital.Sources of funds:It should be decided by keeping in view the value of the firm to collect funds through issue of shares or debentures.Reduce risks:There won’t be profits without risk. But for this reason if more risk is taken, it may become danger to the existence of the firm. Hence risk should be reduced to minimum level.Long run value:It should be the feature of financial management to increase the long-run value of the firm. To earn more profits in short time, some firms may do the activities like releasing of low quality goods, neglecting the interests of consumers and employees.These trials may give good results in the short run. But for increasing the value of the firm in the long run, avoiding; such activities are more essential.Scope and functions of Financial Management:The scope of financial management includes three groups. First – relating to finance and cash, second – rising of fund and their administration, third – along with the activities of rising funds, these are part and parcel of total management, Isra Salomon felt that in view of funds utilisation third group has wider scope.It can be said that all activities done by a finance officer are under the purview of financial management. But the activities of these officers change from firm to firm, it become difficult to say the scope of finance. Financial management plays two main roles, one – participating in funds utilisation and controlling productivity, two – Identifying the requirements of funds and selecting the sources for those funds. Liquidity, profitability and management are the functions of financial management. Let us know very briefly about them.1. Liquidity:Liquidity can be ascertained through the three important considerations.i) Forecasting of cash flow:Cash inflows and outflows should be equalized for the purpose of liquidity.ii) Rising of funds:Finance manager should try to identify the requirements and increase of funds.iii) Managing the flow of internal funds:Liquidity at higher degree can be maintained by keeping accounts in many banks. Then there will be no need to depend on external loans.2. Profitability:While ascertaining the profitability the following aspects should be taken into consideration:1) Cost of control:For the purpose of controlling costs, various activities of the firm should be analyzed through proper cost accounting system,ii) Pricing:Pricing policy has great importance in deciding sales level in company’s marketing. Pricing policy should be evolved in such a way that the image of the firm should not be affected.iii) Forecasting of future profits:Often estimated profits should be ascertained and assessed to strengthen the firm and to ascertain the profit levels.iv) Measuring the cost of capital:Each fund source has different cost of capital. As the profit of the firm is directly related to cost of capital, each cost of capital should be measured.3. Management:It is the duty of the financial manager to keep the sources of the assets in maintaining the business. Asset management plays an important role in financial management. Besides, the financial manager should see that the required sources are available for smooth running of the firm without any interruptions.A business may fail without financial failures. Financial failures also lead to business failure. Because of this peculiar condition the responsibility of financial management increased. It can be divided into the management of long run funds and short run funds.Long run management of funds relates to the development and extensive plans. Short run management of funds relates to the total business cycle activities. It is also the responsibility of financial management to co­ordinate different activities in the business. Thus, for the success of any firm or organization financial management is said to be a must.

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by Mohit Jain

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3641 Views 4 years ago