EU economic relation with MERCOSUR Essay

Introduction MERCOSUR (Southern Common Market) was established in 1991 as a customs union and common market between Argentina, Brazil, Paraguay and Uruguay. Chile and Bolivia later joined as associate Mercosur members. Since mid-2000, they have been engaged in negotiations with the EU to establish a free trade area covering both regions. History in the Making On May 28, 2004, EU and MERCOSUR trade representatives convened in Guadalajara, Mexico to continue an ongoing negotiation process. MERCOSUR holds a comparative advantage in a wide range of agricultural produce, which composes more than half of its total exports, while Europe is particularly strong in industrial and capital markets, such as automobiles, telecommunications and banking. Their complementary economies seem ideally suited for engaging in free trade, with each component of the bloc specializing in their specific fields of strength. However, import quotas and tariffs, intended to protect MERCOSUR members’ infant industries as well as high cost European farmers, present mountainous obstacles to the realization of any free trade agreement. At the May 28 summit, both sides tentatively agreed to open their markets to foreign competition. The EU and MERCOSUR have each shown a willingness to make difficult concessions in order to see their negotiations come to fruition. The Border is Closed The European Union’s protectionist agriculture regulations insulate locally grown produce from foreign competition. Cultivatable land, a precious and scarce commodity on the continent, is extraordinarily expensive. Hence the European Parliament instituted subsidies, import quotas and tariffs to keep the region†s relatively inefficient agro-industry afloat by regulating prices on the European market. These policies have effectively kept MERCOSUR products out of the European market as the EU refused to negotiate on opening its markets up to foreign competition by the raising of its quotas and the lowering of its tariffs. However, European negotiations have recently made important concessions aimed at expediting the process. The EU Common Agricultural Policy of 2003, which significantly reduced Europe’s farm subsidies, coupled with an increase in import quotas and a lowering of tariffs, have strengthened MERCOSUR’s confidence in the positive outcome of trade talks. Europe’s reluctant acquiescence to MERCOSUR’s demands is an attempt to pursue a strategy aimed at obtaining greater access to South American markets where European industries and sectors (such as automobile, telecommunication, banking and computer production) have excelled in the past and appear to have an even more prosperous future. Like its European counterpart, MERCOSUR has traditionally been averse to granting greater access to these markets, defending its protectionist policies with an infant industry argument. These industries are too small, it maintains, to compete in the world market, and therefore opening its borders at this time could destroy domestic firms. However, the South American Common Market has recognized the significance of Europe’s offer, and in return, has allowed for ever greater access to its telecommunication and banking industries. Partners in Decay There is a downside to the growing ties between Europe and MERCOSUR. Europe’s courting of MERCOSUR is at best undermining the fabric that binds the fragile G20 together. G20 members fear that the EU-MERCOSUR agreement could provide unfair access to markets, which would be illegal according to the World Trade Organization (WTO) standards. According to these, Most Favored Nation Status (MFN) cannot be reserved for specific countries, but must be shared among all applicable WTO members. According to some G20 members, including China, India, South Africa and Brazil, the European Union’s decision to engage in trade talks with MERCOSUR is a stratagem to undermine the G20, an organization that could potentially cause serious problems for both the EU and the United States. Restructuring the Map An accord between the two giant trading blocs has the potential to upset and shift the balance of power in the global trade arena, not only affecting the G20 but also challenging US economic hegemony in the Western Hemisphere. A â€Å"leading light in the Cairns group of agricultural exporters† and a founding member of the G20, Brazil’s political clout in the international community is growing exponentially. Its ability to command greater respect in political and economic agreements has persuaded the EU to offer greater concessions to MERCOSUR and is forcing the United States to reformulate its position on the Free Trade Area of the Americas (FTAA). There is no doubt that Brazil is using the EU-MERCOSUR trade agreement, and the commercial bonanza it should bring, as a weapon to increase its bargaining power in forthcoming FTAA talks with Washington concerning farm subsidies. The election of two left-leaning presidents in Brazil and Argentina, as well as a shift away from a Western Hemisphere trade pact toward a more amicable courtship with Europe, reflects a fundamental change in Brazilian and Argentine politics as well as in their strategy in dealing with the US. Neither government wants to be considered, as Brazilian President Lula stated during his presidential campaign, an â€Å"annexation† of the United States. In 2004, worries over progress in negotiations deepened as the co-chairmanship of the FTAA rotated to the United States and Brazil. Unfortunately, the inability to compromise by the proposed trading bloc’s two major powers has stalled progress on the realization of such an agreement. It also has persuaded a newly confirmed pessimist MERCOSUR to look across the Atlantic for an opportunity to further its global thrust and self-interests. The United States’s reluctance to discuss any reductions in farm subsidies during recent FTAA trade rounds has hindered the chances of signing a Free Trade Area of the Americas agreement by 2005, the projected year for it to be announced. Meanwhile, Europe has slipped into the foreground, prepared to equal or even replace the United States as the dominant trading power on the South American continent. The United States’s hegemonic status in the Americas is in peril. To maintain a semblance of the status-quo, Washington will have to concede to demands for a slash in farm subsidies if it wishes to reignite the negotiation process, or at least keep it alive, and to maintain itself as the predominant regional superpower, the US will be forced to compromise. The EU-MERCOSUR free trade agreement without a question is a threat to the United States’s dominance in the region. Europe’s belated decision to open its agricultural markets to foreign competition leaves Washington in a precarious position at the negotiating table with its Latin American counterparts. Previously, the EU and the US held the same line regarding agricultural subsidies; both argued that the subject should be addressed at future WTO trade rounds rather than through bilateral trade agreements. If it now wishes to remain competitive with Europe in the South American market, Washington will have to address the issue of the subsidies and import quotas that up to now have plagued many of the Latin American countries. With the EU now retreating from its long held protectionist position, the US can no longer expect to walk away from negotiations with a victory in hand which places Latin America in a dependent position in the FTAA. Scraping Bottom: US-Latin American Relations There is no question that US-Latin America relations are at their lowest point in a generation. Clearly, when it has come to leadership and a strong moral stance regarding US policy initiatives towards Cuba, Venezuela and Haiti, Secretary of State Powell has provided no leadership and certainly no vision. By default, such leadership fell into the hands of Otto Reich and a small band of venomous rightwing ideologies headed by Otto Reich, Roger Noriega and Dan Fisk, who held their places because Powell allowed them to be imposed on him. As a career propagandist and huckster-ideologue, Otto Reich built his professional existence on disseminating public disinformation along with a capacity for extremist politics that have done incalculable damage to the maintenance of a balanced and responsible regional policy. Almost single-handedly, he has bent and distorted US-Latin American relations and has produced a level of odium that cannot be easily recalled in the recent chapters of the bilateral relationship between the two hemispheres. His legacy hardly serves that word, filled as it has been with vulgar rhetoric, meretricious analysis, Rasputin-like conspiracies, and an inability to distinguish responsible behavior from that of a low quality goon. He, together with his fellow alumni from former Senator Helms’s tawdry regional policy-making workshop at the Senate’s foreign relations committee, the State of Department’s Roger Noriega and Dan Fisk, have gone a long way to pollute US hemispheric ties so fundamentally that it will take a generation to undo. From a Caribbean, Andean or South American standpoint, the EU-MERCOSUR pact strengthens their respective chances for a fairer and freer FTAA agreement. The United States can no longer treat its hemispheric partners as subsidiaries of a holding company which it controls now that Europe has presented itself as a viable second option for a binding trade relationship. Living in an era of increasingly free global trade, the EU-MERCOSUR pact could be a refreshing change from a history of largely self-serving and US-dominated agreements. The trade agreement between the European Union and MERCOSUR could come to rival the Free Trade Area of the Americas as a major hemispheric economic force, even if both are achieved. As the United States’s soft power continues to decline in the region, Europe’s global stock looks increasingly more appealing. If the US wishes to maintain its traditional position astride the Western Hemisphere, it must learn from its European counterparts how to stop talking down and start talking to Latin America. Internet References: REDES / Friends of the Earth Uruguay: http://www.redes.org.uy/ L`Observatori de las Transnacionales (LO’T), research group focusing on Spanish TNCs in Latin-America. Contact: David Llistar david.llistar@debtwatch.org Red Mexicana de Accion Frente al Libre Comercio (RMALC): http://www.rmalc.org.mx/ Transnational Institute (TNI): http://www.tni.org/altreg/index.htm Corporate Europe Observatory (CEO): http://www.corporateeurope.org/ Alianza Chilena Por Un Comercio Justo y Responsable (ACJR): http://www.comerciojusto.cl/index.htm Asociacion Latinoamercana de Organizaciones de Promocion (ALOP): http://www.alop.or.cr/

Case Study Formula 1

Q1. What do you need in order to succeed in Formula One? The case studies emphasise that all three racing teams focussed on different strategies. Their strategies changed within the environment and circumstances, but what is overwhelmingly evident is that a team needs all the elements to be in synergy and for focus to be on every aspect of the strategy. As the old adage, ‘A team is only as strong as its weakest link. This means that in order to be successful and to maintain success, you’ve got to get all the elements right, the overall package, the budget, the designer, the engine, the drivers, the organisation and every aspect, from what is deemed most important to the least important, all play an essential part of sustaining a winning team. The strategy employed has to be all encompassing and must definitely not rely on any one aspect only, as this has proven to be short lived, and cannot sustain long-term success. A distinct advantage is for these racing teams to be afore with latest technology and to ensure a good relationship with its sponsors and suppliers especially the engine suppliers, as was evident with the Honda partnership in supplying engines. Another dimension is the attitude, drive and enthusiasm of the team. Their desire to win and the extra effort they put in, not just to rely on a fast car or good driver, but also to have a focussed mindset and good inter-relationships. 2. Why do you think your team were successful during this period? The Ferrari team was successful during this 2000 –2004 due to them changing their mindset from the conventional and adapting to the rapid advancement of technology. Even though they had the money, resources and discipline they lacked the innovation to move forward and keep up with the rest of the world with respect to technology. By recruiting John Bernand the top technical designer and setting up the GTO plant in Guildford gave Ferrari the edge they needed. This plant focused on long term R & D and the Marnello plant concentrated on the current design and activities. Both long term and short term strategies were being fulfilled and a synergy was formed. The death of Enzo Ferrari gave rise to a new management team with a different management style. This created some problems/shift within the organisation but it also gave way to benefits, as the saying goes, â€Å"Change is as good as a holiday†. The new management team was able to amalgamat the human resource plan, marketing plan and financial plan to ensure sustainability of the organisation. They recruited the right people to compliment the business and take their business to new heights. The new team helped Schumacher to world titles. In addition Schumacher’s talent as a driver coupled with his motivating skills provided a base for an excellent performing team. Ferrari’s supply chain was critical for the sustainability of their company. Long-term commercial and technological partnerships were set up with Marlbaro and Shell which maximised the benefits of Ferrari’s investments. These partnerships provided the technical and financial support needed. 3. Why were they unable to sustain this success? One of the key reasons that Ferrari was unable to sustain their success was as a result of complacency. The developers at Ferrari lack the foresight to acknowledge that the design of the product i. e the F1racing car. The strategy that was adopted by Team Ferrari focused primarily on the engine that ran the car, this owing largely to the fact that this was the ideology of it’s chairman Enzo Ferrari, this strategy was entrenched in the technical development team. Ferrari believe that by building better faster engines that their cars would remain unbeatable. This strategy was effective however only for a period of time. Other teams had realised that there were other aspects of the cars design that contributed to it’s performance. As result the strategy of these teams shifted from finding the perfect engine to designing the perfect race car that was aerodynamically efficient, who’s chassis were lighter and therefore sought to find an engine that compliment these new designs, this was achieved with the use of the V12 engines which perfectly. Whilst all of these technological developments were taking place in the F1 arena, Ferrari chose to focus on it’s long term strategy which focused on the development of the V6 turbocharged engine. This essentially meant that their drivers were now competing with cars that no longer held a competitive advantage, in fact the cars were now considered inferior. The fundamental flaw in this instance was that Ferrari had ignored the change in trends in the immediate environment and stuck to what they felt worked. The strategy was to exploits their strengths but neglected the opportunities that presented themselves. They had failed to respond to an immediate threat, thus exposing their weaknesses and allowing themselves to retrogress to the extent that Ferrari was no longer considered a threat. This was further compounded by the problems that were being experienced between Audetto and Laude, Ferrari’s strength was derived somewhat from the relationship between Team Boss and Driver and with Audetto not being able to accomplish this, it impacted on the performance of the team. In addition, the heavy reliance on the driver, meant that the team was left at the mercy of it’s driver, this was evident when Laude was unable to compete for six weeks, this allowed the competition to close in on the lead that Ferrari had established. What this showed was Ferrari’s inability to adapt to a change in circumstances. The strategy that it had employed during this time did not include contingencies. What could they have done to sustain their success further? A key consideration for Team Ferrari should have been the technological advancements that were taking place in terms of the design of the vehicle. It was undoubted that Ferrari had the necessary resources at their disposal to have developed a car that other manufacturers would have envied which in fact they did manage to do. However their strategy should have been innovative to have explored a more integrated approach to the design of the car. They should have exploited the opportunity of forming alliances with key design engineers that specialised in the field of aerodynamics as that was a growing trend in the F1 arena. Management should have been more in tune with the immediate environment and had the foresight to have identified the shifting trends and re-strategized to accommodate the trends thereby ensuring that they remained more competitive. Further, the changes in the management team should have been limited to allow for the team to adapt to the technological changes that were taking place around them. The strategy of Ferrari should have focused on fully utilising its strengths to exploit the opportunities that presented themselves thereby addressing the threats imposed by it’s competitors. 4. Conclusion: In order to have remained competitive or in fact dominant Ferrari should have adopted a more entrepreneurial approach to it’s business and seized the opportunities to be innovative to point of being the benchmark in Formula One racing. The strategy should have been influenced more by the technological environment in which it competed as a opposed to the historical goals of a single individual. It should have sought to make it offerings to the F1 world current and innovative, resourced should have been channelled towards an integrated approach to the manufacture of a Formula One car that was both innovative yet extremely competitive, thus ensuring that Ferrari remain at the forefront of innovation and Formula One racing.

Global Expansion Plan

LETTER OF TRANSMITTAL 22 November 2012 Datuk Steven Sim Chief executive officer and managing director Secret Recipe Cakes and Cafe Sdn Bhd Malaysia Dear Sir, FINAL REPORT SUBMISSION – EXPANSION PLAN TO VIETNAM MARKET Please find attached the reported requested by the Board. This report reveals an insight into the Vietnamese market and explains why this is a potential one to invest in. We hope that the information provided is useful in the decision-making with regard to further development of Secret Recipe in the future.If you need any farther clarification on the report, please do not hesitate to contact me, the team leader, at an email address: [email  protected] nottingham. edu. my Yours sincerely, Nguyen Huynh Bao Ngoc On behalf of the Global Strategy Team Table of Contents 1. Executive summary3 2. Introduction4 3. Methodology5 4. Findings and Discussion6 4. 1. Motives of internationalization6 4. 2. Justification of entering into Vietnam6 5. Conclusion13 6. Recommendation s:14 6. 1. Most appropriate strategy14 6. 2. Entry mode14 6. 3.Appropriate organization structure15 7. References16 1. Executive summary This report critically examines the possibility of Vietnam to be the next stop in Secret Recipe’s global expansion plan. Initially, the report highlights the current great achievements that Secret Recipe has been attaining from its very first internationalized activity. Employing the proper strategy and being favored by consumers all guarantee an auspicious future for the chain. Taking all of these merits, the company consecutively looks for new marketplaces with new resources.Simultaneously, findings have shown that Vietnam is an appealing market because of its potentials in a fast-growing economy and long-term profitability, as well as rich resources. Then, the country risk analysis and the country market and industry opportunities analysis were introduced to evaluate Vietnam’s benefits and drawbacks. The result is that there are ro oms for both of them. Therefore, so as to be successful, recommendations on appropriate entry mode, strategy and organization structure are specified.To be more detailed, the most suitable entry mode is master franchising via a joint venture because it brings about the positively high certainty in operating. As for strategy, it is an international one to ensure consistency in the menu and concept by taking control over the core competencies and leaving other decisions to foreign subsidiaries. Besides, the Worldwide Area Structure is vital in terms of managing the company’s global expansion as it enables local responsiveness and decentralized authority, which both matter for future growth.Finally, the main conclusion is that Vietnam is the right solution for the Board’s decision to expand overseas. Nonetheless, the management should cautiously take into account the recommendations so that Secret Recipe can win. 2. Introduction Secret Recipe has gained its popularity not only in Malaysia but also across the region. The great succeed stemmed from the ambience brought to customers and the high-quality food served at reasonable prices. The number of foreign outlets is now exceeding 40 and is expecting to increase.According to Welch and Luostarinen (1988), internationalization can be described as a process by which the level of involvement in overseas activities of a firm rises. Indeed, adding the number of overseas outlets up to 100 was part of the ambitious global expansion plan. Recently, the company has spent RM60 million to invest in 2 more new markets which are India and Cambodia (TheSundaily. com, 2011). Evangelista (1994) argues that the readiness to fund international activities proves that firms desires to move further.In the past 3 years, the company has witnessed an annual growth rate of 30% (Articlebase. com, 2011). Taking advantage of both the reputation and the growth pace, it is the right time to put one step further and seize the oppor tunities available in a new market to grow even larger. The Global Strategy Team, after doing research on several potential markets within the Asian area, strongly recommends Vietnam. In this report, the motives of internationalization of Secret Recipe will be disclosed, as well as the motives of choosing Vietnam as a new international market will also be revealed.And as for a smooth penetrating process, recommendations relating to the strategy to be implemented, to the entry mode to be executed, and to the organization structure to be formed will be offered. 3. Methodology The information and data given were collected from many government and organization websites, namely Datamonitor, Trading Economics, General Statistics Office of Vietnam, etc. Besides, a proportion of them were also taken from reliable online newspapers such as TheSundaily. com.In addition, knowledge from International Business books and journals was also introduced to help provide a better understanding. Neverth eless, due to the unavailability of official information about Secret Recipe performance, the analysis had to rely entirely on online newspapers and the CEO’s reported interviews. In addition, the focus of the report is mostly on the food sector, not the franchising one. It is due to the well-structured characteristic of the franchising that it promotes a simple way to interpret and analyze.By contrast, food is a subjective topic as it relates to personal opinion, thus there are limits on suggestions. 4. Findings and Discussion 4. 1. Motives of internationalization Secret Recipe is now among the fastest-growing restaurant chains both domestically and regionally. For the last 5 years, the growth rate has been an amazing double-digit figure (TheSundaily, 2011), accompanied by a rapid increase in the number of outlets. Currently, its outlets present in 8 Asian countries including China, Australia and Pakistan.In any market, there is always a positive reaction from the consumers. A proven fact is that Secret Recipe has been awarded with many titles such as â€Å"Best Cheesecake award†, â€Å"Malaysia’s best local restaurant chain†, â€Å"Indonesian's Best Restaurant Award†, â€Å"Singapore's Excellent Food Award†, â€Å"Best Restaurant Award – Philippines Talter†, etc. This is to say, Secret Recipe, after securing its stance in Malaysia, is continuously gaining customer awareness and fame throughout the region. As a result, Secret Recipe’s movement could be best explained using Eclectic paradigm (Dunning, 1980, 1981).Among the 3 advantage factors recognized by the Eclectic paradigm, the Ownership advantage appears to be most relevant to the context of Secret Recipe. As stated above, the company now possesses a valuable intangible asset which is good brand awareness. Besides, stated in the theory, one of the reasons behind the internationalization of a multinational firm is market seeking investment. In this particular case, Secret Recipe is to exploit new market (i. e. Vietnam) because of its prospects of market size and market growth (Dunning and Lundan, 2008) 4. 2. Justification of entering into Vietnam Vietnam risk analysis:Political risks Vietnam is famous for its political stability. This diminishes the insecurity and uncertainty of foreign investors deciding to invest in Vietnam. According to Worldwide Governance Indicators (2011), the Vietnamese political environment remains almost steady in the past 15 years. Figure 1 Source: Worldwide Governance Indicators (2011) Note: Percentile ranks indicate the percentage of countries worldwide that rank lower than the indicated country, so that higher values indicate better governance scores. The line graphs include margins of error shown as dashed lines, corresponding to 90% confidence intervals.Competitive risks Corruption level in Vietnam is reported to be one of the highest in the world. According to Transparency International, 2011’s score was 2. 9, which increased 0. 2 points compared to the year before. Indeed, in comparison to other countries in Southeast Asia such as Malaysia and Thailand, Vietnam’s freedom from corruption index remains low (refer to figure 2). However, the formation of the Vietnam Anti-Corruption Initiative Program 2011 (VACI) supported by World Bank somehow saves the situation. Figure 2. Vietnam’s freedom from Corruption in comparison with Malaysia, Thailand and the World AverageSource: Heritage (2012) Operational risks Suppliers play an important role in deciding the quality. In any market, suppliers are abundant but not all of them can provide what Secret Recipe desires for a good menu. Therefore, an insightful search should be carried out before entering the market. Economic risks The inflation rate of Vietnam fluctuates wildly (refer to figure 3). This issue somehow imposes a concern, as the less wealthy class will be more conscious with eat-out whenever the rate is high, which eventually will negatively impact the foodservice sales. Figure 3 Source: TradingEconomis. om | General Statistics Office of Vietnam Vietnam market and industry opportunities: Market: In the World Bank’s 2011 Annual Report, Vietnam is perceived to reach a middle-income level country soon enough. The Vietnamese foodservice industry grew at a CAGR of 6% from 2005 to 2009. It is estimated that the growth rate would be at a CAGR of 4. 5% from 2010 to 2014 (Datamonitor, 2011). In recent years, the country has also witnessed a steady urbanization, with a rate of 3. 1% in 2010 (ReportLinker, 2012) accompanied by a sharp rise in population, implying an increasing demand for food.The rationale behind this is that as people move to big cities to work, they will have little time to prepare their own meals. Thus, eating out becomes an optimal choice. Also, according to that report by ReportLinker, there has been a surge in the number of households in Vietnamese econo my. Two types of households that contribute the most the industry are single member households and working couples as it fits into their fast-paced lifestyle. Furthermore, Vietnamese population is huge (87. 84 million in 2011) and young. Specifically, in 2010, the group 15-29 (i. e. argeting customer of Secret Recipe) appeared to be significantly larger than others. It is predicted that the group will be expanding in the next ten years, indicating a long-term growth for Secret Recipe in Vietnam food industry. Figure 4. Vietnam population by age and sex in 2010 Figure 5. Vietnam population by age and sex in 2020 Resources: Labor: Secret Recipe can be beneficial from a low-cost and huge workforce. According to General Statistics Office of Vietnam, 57. 2% of Vietnam’s population participated to labor market and 32. 5% of them had undergone or completed a vocational/professional training.It somehow guarantees skilled labor force availability. Raw materials: Basic ingredients are available here in Vietnam. However, only qualified suppliers worth the contracts otherwise they may ruin Secret Recipe’s image. Nonetheless, some of the flavors can be costly as they are imported goods with high prices. An approach to this problem could be buying in bulk and storing them for further process. Location: A number of shopping malls and superior residential areas are being built as a developing plan (Food services in Vietnam, Market Analysis, 2012). Therefore, Secret Recipe can easily reach to its customers.Apparently, however, rental price should be considered consciously. Competition: Porter’s Five Forces model, which consists of five elements, is used to give an overall picture of the food industry in Vietnam. Intensity of rivalry: Medium Currently, in terms of cheese cake, which is a core product of Secret Recipe, there are no direct competitors as none of the existing players emphasize their menu on that. Nonetheless, as for other Vietnamese dishes tha t will be developed later on, Secret Recipe should be aware that they have been being offered by domestic independents for years (Food Service profile, 2012).Their primary advantage is the understanding of the market, customers and their taste, which will take times for Secret Recipe to gain. Threats of new entrants: Medium to High Setting up a food business generally does not require high capital in comparison to other businesses. However, the procedure to ask for permission to do business in Vietnam needs good relationship with the authorities. Undoubtedly, food is a recession-free industry; hence business entities can earn profit eventually setting foot into this industry. Bargaining power of suppliers: LowAs mentioned, in order not to ruin Secret Recipe’s name, only reliable and qualified suppliers selected. Therefore, once the contract is signed between the two parties, it will be a long-term one and thus the switching cost would be relatively high, causing the suppliers ’ bargaining power to be low. Bargaining power of customers: High Vietnamese food consumers are offered with many choices. Currently, there are several cake brands operating in Vietnam such as Paris Baguette, Chewy Junior (Singapore brand), Tour le Jour (Korean brand).Besides, street vendors’ food is plentiful with many different taste and prices to choose from. Consequently, together with a favor in low switching cost, customers can easily go to another restaurant if they want to. Threats of substitutes: High Cakes are not that essential in a person’s daily life. Moreover, food in general in Vietnam is diversified and can be found on any street with a relatively reasonable price, mostly serve local cuisines to their largely native customers especially in big cities like Ho Chi Minh City.Thus, when it comes to hunger, people can choose from a wide range of them. 5. Conclusion To put it in a nutshell, the motives of internationalization of Secret Recipe can be be st enlightened applying Eclectic paradigm, particularly the Ownership advantage. At the moment, the company’s strategy is trying to spread its brand name beyond borders by constantly looking for new international markets and by bravely spending budget on them. Accordingly, one with great potentials would be worth the investment.All the findings and data have proved that Vietnam comes in the first place in the list of promising marketplaces due to its strongly growing economy, low-cost labor, and dynamic food market. Although entering into the country poses obstacles (e. g. intense competition, good authorities relationship) and economic threats (e. g. unstable inflation rate, high corruption rate), choosing the right strategy, the right means of going into it and building a suitable organization structure would foster an effective and efficient managing job. 6. Recommendations: 1. 2. 3. 4. 5. 6. 7. 1.Most appropriate strategy The most suitable strategy to be executed when ent ering Vietnam market is international strategy. There are two reasons for this choice. Firstly, the Secret Recipe’s menu on cheese cakes was originally developed by Malaysian chefs. People come to the restaurant mostly to enjoy the unique fine taste and the ambience there. Therefore, the R;D function should be in the home country so that the uniqueness making the brand name will always be the same. This happens to be parallel with the top management’s viewpoint in which the menu stays unchanged in any market.Secondly, the pressure for local responsiveness is low, not zero. Also, the most crucial characteristic of any organization is the willingness to develop products for foreign markets (Rosson and Ford, 1982). In fact, the success of Secret Recipe in foreign markets has its root in the willingness to include the popular dishes of the local food culture. Furthermore, Vietnamese consumers favor their traditional dishes such as Pho, spring rolls, etc. Thus, being able t o fruitfully offer them in the menu will certainly be an advantage. 1. 2. 3. 4. 5. 6. 7. 1. 7. 2. Entry modeOviatt and McDougall (1994) advise that firms should use †alternative governance structures†, such as franchising, licensing. And together with the analyses about Vietnam risks and industry opportunities, the recommended entry mode for Secret Recipe is establishing a master franchise via a joint venture. The reasons are as follows. First of all, Secret Recipe is in the food industry where the best mean of doing business is franchising. Indeed, the company has achieved its regional prospect thanks to properly implementing that form. In other words, the management is experienced.Moreover, the franchising is now widely perceived and accepted by Vietnamese business entities and the government, making the process easier and less costly. Secondly, Secret Recipe is still on the progress of opening a foreign market, thus what matters the most to the management would be the development costs and risks. As a result, setting up a master franchise will somehow save the management from many problems as it is now the master franchisee’s job to select and train franchisees, select locations, etc. Also, the costs and risks will be shared with the local partner in a joint venture.Thirdly, there is always a need to reduce control challenges and to protect the brand name, as well as to benefit from a local partners’ knowledge of the host country’s competitive conditions, culture, language, political and business systems whenever expanding internationally. In this sense, a joint venture appears to be essential and practical. Besides, due to the complexity of Vietnamese market, a Vietnamese partner would be helpful in negotiating with the authorities, finding suppliers, recruiting personnel, etc. 7. 3. Appropriate organization structureIn terms of global expansion management, the recommendation structure goes to Worldwide Area Structure. The reason is that for farther development, Secret Recipe will obviously expand to other markets in different countries and territories around the world. Sooner or later, the management will have to deal with problems arising from dissimilarities in customers taste, operational issues, etc. Consequently, to save costs and efforts, it is necessary to have a decentralized bureaucracy, which can be built under a Worldwide Area structure.Plus, the structure facilitates local responsiveness, which is relatively crucial to a restaurant chain like Secret Recipe. On the other hand, the structure bears the threat of fragmentation of the organization. Hence, it needs close monitor and periodical review. [Words count: 2,254] 7. References A recipe for success (2011) [Online]. Available at http://top10malaysia. com/home/index. php/trail-blazing-companies/secret-recipe [Accessed 19th October 2012] B. M. Oviatt, P. P. McDougall (1994). ‘Toward a theory of international new ventures’.Jour nal of International Business Studies, 25 (1994), pp. 45–64 Corruption in Vietnam is serious, blatant, rampant (September 2012) [Online]. Available at http://tuoitrenews. vn/cmlink/tuoitrenews/politics/corruption-in-vietnam-is-serious-blatant-rampant-1. 85998 [Accessed 12th November 2012] Dunning, H. J. , ; Lundan, M. S. (2008). Multinational Enterprises and The Global Economy. (2nd Edition). UK: Edward Elgar Publishing Foodservice in Vietnam to 2014 (July 2011) [Online]. Available at http://www. marketresearch. com/Datamonitor-v72/Foodservice-Vietnam-6446347/ Accessed 28th October 2012] F. U. Evangelista (1994). Export performance and its determinants: some empirical evidence from Australian manufacturing firms ,in: S. T. Cavusgil, C. T. Axmin (Eds. ), Advances in international marketing, vol. 6JAI Press, Greenwich, CT (1994), pp. 207–229 General Statistics office of Viet Nam [Online]. Available at http://www. gso. gov. vn/default_en. aspx? tabid=515;idmid=5;ItemID=10 6550 [Accessed 5th November 2012] Hill, C. W. L. (2012), International Business: Competing in the Global Marketplace, (9th ed. McGraw Hill, p434-439. L. S. Welch, R. K. Luostarinen (1988). ‘Internationalization: evolution of a concept’. Journal of General Management, 14 (2) (1988), pp. 34–55 P. J. Rosson, L. D. Ford (1982). ‘Manufacturer–overseas distributor relations and export performance’. Journal of International Business Studies, Fall (1982), pp. 57–72 Secret Recipe to invest RM60m on expansion (December 2011) [Online]. Available at http://www. thesundaily. my/news/243733 [Accessed 21st October 2012] Secret Recipe in Malaysia (July 2011) [Online]. Available at http://www. articlesbase. om/customer-service-articles/secret-recipe-in-malaysia-5066674. html [Accessed 22nd October 2012] Secret Recipe plans more foreign outlets (January 2008) [Online]. 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Mechanical Barriers to Communication Any act by which one person gives to or receives from another person information about that persons needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional; it may involve conventional or unconventional signals, may take linguistic or non-linguistic forms, and may occur through spoken or other modes. Organisations cannot operate without communication. Communication can take various forms but all forms involve the transfer of information from one party to the other. In order for the transfer of information to qualify as communication, the recipient must understand the meaning of the information transferred to them. If the recipient does not understand the meaning of the information conveyed to them, communication has not taken place. Communication is the life source of organisations because organisations involve people. People cannot interact with each other without communication. In the absence of communication, everything would grind to a halt. For example; the workers in an organisation would not know the organisations objectives so they would not strive to achieve the organisations objectives. The workers in an organisation would not know what their roles and responsibilities were, so they would not be able to carry out their daily tasks and duties. The managers would not be able to train their workers reports so the workers would not possess the skills they needed to carry out their jobs. The managers would not be able to inform workers of changes The organisation would not be aware of their competitors activities On the whole people are able to communicate with each other as this is a basic human function. However successful organisations strive not only for communication but effective communication. Interpersonal Communication This is defined as communication between two or more people and involves the transfer of information (or message) from one person to the other(s). The person transferring the information is called the sender or transmitter. The people receiving the message are known as receivers. The transmitter will need to send the information in a format that the receiver(s) will understand. Converting the information into a format that the receivers will understand is known as Encoding. Messages can be encoded into a variety of formats oral, written or visual. After encoding the message is transferred via a medium called a channel, for example a letter, fax, phone call, or e-mail. After transference the information will need to be interpreted by the receiver. This process of interpretation is known as decoding. Finally the receiver will send a message back to the transmitter confirming whether the information sent has been understood. This back check is known as feedback. The communication process involves seven key elements as illustrated in the diagram below. Why you need to get your message across Effective communication is all about conveying your messages to other people clearly and unambiguously. Its also about receiving information that others are sending to you, with as little distortion as possible. Doing this involves effort from both the sender of the message and the receiver. And its a process that can be fraught with error, with messages muddled by the sender, or misinterpreted by the recipient. When this isnt detected, it can cause tremendous confusion, wasted effort and missed opportunity. In fact, communication is only successful when both the sender and the receiver understand the same information as a result of the communication. By successfully getting your message across, you convey your thoughts and ideas effectively. When not successful, the thoughts and ideas that you actually send do not necessarily reflect what you think, causing a communications breakdown and creating roadblocks that stand in the way of your goals both personally and professionally. In a recent survey of recruiters from companies with more than 50,000 employees, communication skills were cited as the single more important decisive factor in choosing managers. The survey, conducted by the University of Pittsburghs Katz Business School, points out that communication skills, including written and oral presentations, as well as an ability to work with others, are the main factor contributing to job success. In spite of the increasing importance placed on communication skills, many individuals continue to struggle, unable to communicate their thoughts and ideas effectively whether in verbal or written format. This inability makes it nearly impossible for them to compete effectively in the workplace, and stands in the way of career progression. Being able to communicate effectively is therefore essential if you want to build a successful career. To do this, you must understand what your message is, what audience you are sending it to, and how it will be perceived. You must also weigh-in the circumstances surrounding your communications, such as situational and cultural context. The Communications Process To be an effective communicator and to get your point across without misunderstanding and confusion, your goal should be to lessen the frequency of problems at each stage of this process, with clear, concise, accurate, well-planned communications. We follow the process through below: Source As the source of the message, you need to be clear about why youre communicating, and what you want to communicate. You also need to be confident that the information youre communicating is useful and accurate. Message The message is the information that you want to communicate. Encoding This is the process of transferring the information you want to communicate into a form that can be sent and correctly decoded at the other end. Your success in encoding depends partly on your ability to convey information clearly and simply, but also on your ability to anticipate and eliminate sources of confusion (for example, cultural issues, mistaken assumptions, and missing information.) A key part of this knows your audience: Failure to understand who you are communicating with will result in delivering messages that are misunderstood. Channel Messages are conveyed through channels, with verbal channels including face-to-face meetings, telephone and videoconferencing; and written channels including letters, emails, memos and reports. Different channels have different strengths and weaknesses. For example, its not particularly effective to give a long list of directions verbally, while youll quickly cause problems if you give someone negative feedback using email. Decoding Just as successful encoding is a skill, so is successful decoding (involving, for example, taking the time to read a message carefully, or listen actively to it.) Just as confusion can arise from errors in encoding, it can also arise from decoding errors. This is particularly the case if the decoder doesnt have enough knowledge to understand the message. Receiver Your message is delivered to individual members of your audience. No doubt, you have in mind the actions or reactions you hope your message will get from this audience. Keep in mind, though, that each of these individuals enters into the communication process with ideas and feelings that will undoubtedly influence their understanding of your message, and their response. To be a successful communicator, you should consider these before delivering your message, and act appropriately. Feedback Your audience will provide you with feedback, as verbal and nonverbal reactions to your communicated message. Pay close attention to this feedback, as it is the only thing that can give you confidence that your audience has understood your message. If you find that there has been a misunderstanding, at least you have the opportunity to send the message a second time. Context The situation in which your message is delivered is the context. This may include the surrounding environment or broader culture (corporate culture, international cultures, and so on). Barriers of Communication 1. Physical barriers Physical barriers in the workplace include: Marked out territories, empires and fiefdoms into which strangers are not allowed Closed office doors, barrier screens, separate areas for people of different status Large working areas or working in one unit that is physically separate from others. Research shows that one of the most important factors in building cohesive teams is proximity. As long as people still have a personal space that they can call their own, nearness to others aids communication because it helps us get to know one another. 2. Perceptual barriers The problem with communicating with others is that we all see the world differently. If we didnt, we would have no need to communicate: something like extrasensory perception would take its place. The following anecdote is a reminder of how our thoughts, assumptions and perceptions shape our own realities: A traveller was walking down a road when he met a man from the next town. Excuse me, he said. I am hoping to stay in the next town tonight. Can you tell me what the townspeople are like? Well, said the townsman, how did you find the people in the last town you visited? Oh, they were an irascible bunch. Kept to themselves. Took me for a fool. Over-charged me for what I got. Gave me very poor service. Well, then, said the townsman, youll find them pretty much the same  here. 3. Emotional barriers One of the chief barriers to open and free communications is the emotional barrier. It is comprised mainly of fear, mistrust and suspicion. The roots of our emotional mistrust of others lie in our childhood and infancy when we were taught to be careful what we said to others. Mind your Ps and Qs; Dont speak until youre spoken to; Children should be seen and not heard. As a result many people hold back from communicating their thoughts and feelings to others. They feel vulnerable. While some caution may be wise in certain relationships, excessive fear of what others might think of us can stunt our development as effective communicators and our ability to form meaningful relationships. 4. Cultural barriers When we join a group and wish to remain in it, sooner or later we need to adopt the behaviour patterns of the group. These are the behaviours that the group accept as signs of belonging. The group rewards such behaviour through acts of recognition, approval and inclusion. In groups which are happy to accept you, and where you are happy to conform, there is a mutuality of interest and a high level of win-win contact. Where, however, there are barriers to your membership of a group, a high level of game-playing replaces good communication. 5. Language barriers Language that describes what we want to say in our terms may present barriers to others who are not familiar with our expressions, buzz-words and jargon. When we couch our communication in such language, it is a way of excluding others. In a global market place the greatest compliment we can pay another person is to talk in their language. One of the more chilling memories of the Cold War was the threat by the Soviet leader Nikita Khruschev saying to the Americans at the United Nations: We will bury you! This was taken to mean a threat of nuclear annihilation. However, a more accurate reading of Khruschevs words would have been: We will overtake you! meaning economic superiority. It was not just the language, but the fear and suspicion that the West had of the Soviet Union that led to the more alarmist and sinister interpretation. 6. Gender barriers There are distinct differences between the speech patterns in a man and those in a woman. A woman speaks between 22,000 and 25,000 words a day whereas a man speaks between 7,000 and 10,000. In childhood, girls speak earlier than boys and at the age of three, have a vocabulary twice that of boys. The reason for this lies in the wiring of a mans and womans brains. When a man talks, his speech is located in the left side of the brain but in no specific area. When a woman talks, the speech is located in both hemispheres and in two specific locations. This means that a man talks in a linear, logical and compartmentalised way, features of left-brain thinking; whereas a woman talks more freely mixing logic and emotion, features of both sides of the brain. It also explains why women talk for much longer than men each day. Removing Barriers at All These Stages To deliver your messages effectively, you must commit to breaking down the barriers that exist within each of these stages of the communication process. Lets begin with the message itself. If your message is too lengthy, disorganized, or contains errors, you can expect the message to be misunderstood and misinterpreted. Use of poor verbal and body language can also confuse the message. Barriers in context tend to stem from senders offering too much information too fast. When in doubt here, less is oftentimes more. It is best to be mindful of the demands on other peoples time, especially in todays ultra-busy society. Once you understand this, you need to work to understand your audiences culture, making sure you can converse and deliver your message to people of different backgrounds and cultures within your own organization, in your country and even abroad. Barrier refers to something non physical that keeps apart or prevents activity, movement so on. à ¢Ã¢â€š ¬Ã‚ ¡ Types of Barriers Physical mechanical barriers Language or Semantic barriers Socio-psychological barriers Organisational barriers Personal barriers 1- Physical Mechanical Barriers Noise It is the disruption or interference in communication process anywhere along the way. à ¢Ã¢â€š ¬Ã‚ ¡ Noise though of varying degree, disturbs or interferes with communication. Whatever that distracts the receivers attention causes communication breakdown. Noise can be physical psychological. Physical distractions or disturbances such as loud speakers, gossip etc., draw the attention of the receiver. à ¢Ã¢â€š ¬Ã‚ ¡ Psychological noise is related to mental disturbances like ego clash, pre occupied thoughts, hang over, anxiety. DISTANCE Long distances between the sender the receivers can also obstruct effective communication TIME Time refers to the reaching of message. If an important message reaches late it is sure to affect communication. INFORMATION OVERLOAD It refers to excessive transmission of information. Much more information than what the receiver can process is transmitted to him/her. The receiver can ·t understand , digest, analyze act upon information overload that is beyond mental capacity. MECHANICAL BARRIERS Outdated machines equipment may produce excessive noise leading to physical barriers in communication. Distraction like background noise, poor lighting., affect the morale of the employees also obstruct effective communication. 2- SEMANTIC OR LANGUAGE BARRIER UNCLEAR MESSAGE Lack of clarity in message makes it badly expressed. poorly chosen empty word , phrases, inadequate vocabulary, failure to clarify implications etc., are some common faults found. FAULTY TRANSLATION The message that every manager receives from his superiors, peers, subordinates must be translated into language suitable for the respective person( for whom the information is destined). SPECIALISTS LANGUAGE It is often found that technical personnel special groups tend to develop a special, peculiar technical language of their own. It hinders their communication with persons not in their specialty, because of the receivers ignorance of that type of language. 3- SOCIO-PSYCHOLOGICAL BARRIERS DIFFERENCES IN PERCEPTION Perceptual barriers may arise due to differences between individuals in the way they perceive, organize understand their environment. DIFFERENCES IN ATTITUDE People differ with regard to attitudes opinions which often interfere with communication. If the message is consistent with our attitudes opinions we receive it favorably. INATTENTION Communication has no impact on those who are unable or unwilling to listen. If people do not pay the required degree of attention to listening understanding the messages they are supposed to receive. PREMATURE EVALUATION Some people form a judgment before receiving the complete message. Such premature evaluation prevents effective communication. à ¢Ã¢â€š ¬Ã‚ ¡ RESISTANCE TO CHANGE when new ideas are being communicated, the listening apparatus may act as a filter in rejecting new ideas. Thus resistance to change is an important obstacle to effective communication. CULTURAL DIFFERENCE Cultural refers to values, beliefs, norms, attitudes perceptions of people of different nations or regions. Symbols, words, colors, gestures, language must be carefully selected when senders of information are dealing with people of different nations regions. 4- ORGANISATIONAL BARRIERS STATUS RELATIONSHIP ONE WAY FLOW ORGANISATION STRUCTURE RULES REGULATIONS 5- PERSONAL BARRIERS ATTITUDE OF SUPERIOR- the attitude of superiors towards communication affects the flow of messages in different directions. LACK OF CONFIDENCE IN SUBORDINATES LACK OF TIME MESSAGE OVERLOAD Barriers to effective Communication (leaky bucket) At each stage in the process encoding, transference, and decoding there is the possibility of interference which may hinder the communication process. This interference is known as noise. Often a comparison is made between communication and a leaky bucket. If you use a leaky bucket to carry water, water will be lost at various points in your journey from the water tap to your destination. It is not possible to stop losing water because the bucket contains holes. The amount of water you will lose will be determined by the number of holes in the bucket, the size of the holes, the route you take to your final destination and length of time it takes you to get to your destination. There may also be other events that occur during your journey which increase the amount of water lost. Similarly when information is transferred from the transmitter to the receiver not all of the information may be received by the receiver because of holes called noise. Each of the noise may be affect the amou nt of information transferred. Just as in a leaky bucket, more holes decrease the amount of water, more noise decreases the amount of correct information received. Language issues and Cultural Differences The receiver(s) may not (fully) understand the language used by the transmitter. This may occur if the transmitters language is foreign to the receiver. There may also be language problems (that the communication process) if the message contains technical information and the receivers is not familiar with the technical terms used. Cultural differences created by an individuals background and experience affect their perception of the world. Such cultural differences may affect the interpretation (decoding) of the message sent. Environmental issues If the environment that the transmitter or receiver are in, is noisy and full of sound, the sounds may prevent the message being fully understood. Background noise is often created by colleagues or machinery. Channel issues If the channel used to transfer the information is poor it may prevent all or some of the information being transferred. Examples include a faulty fax machine, a crackling phone, handwriting that cannot be read or in the case of oral messages incorrect facial gestures. Receivers Attitude and behavior If the receiver(s) is not interested in the message (or unable to give their full attention to decoding) this may reduce the amount of information received or the accuracy of the information transmitted to them. Similarly the receiver(s) may misinterpret the message by jumping to conclusions or reading the message in a manner that suits their own interests/objectives and distort the true meaning of the message. Transmission journey i.e. steps in the message, If the message is complicated or there are lots of steps taken to transfer the message it may affect the accuracy or interpretation. Comparing with the leaky bucket if the leaky bucket has to carry water over a longer distance more water will probably lost than if the journey was shorter. Internal / Organisational Communication This is communication that takes place within (or across) an organisation. In addition to the usual face to face, telephone, fax or mail; modern organisations may use technology to communicate internally. Technology may be used for e-mails or a linked internal communication system such as the intranet which is an internet system designed solely for use by those working for the organisation. External Communications Conversely external communication is communication between the organisation and those outside the organisation. Modern organisations may design technological systems so that they can communicate with customers and undertake e-Commerce. Alternatively they communicate with other businesses through the internet or similar systems and undertake e-Business. Functions of Internal and External Communications Technology has rapidly expanded the types of internal and external communication available to organisations. The diagram illustrates the vast array of internal and external communication available. Combined together internal and external types of communications allow various sectors of the local, national and international community to interact, liaise and conduct business. Formal and Informal Communications Formal communication is defined as communication which occurs through the official organisational channels or is undertaken by an employee to do their job. For example official meetings, letters and a manager asking an employee to carry out a particular task. Conversely informal communication is that which occurs outside the recognised communication networks such as talking in the lunchroom or hallways between employees. Informal communication can be productive or negative. It has the potential to build teams, improve working relationships and generate ideas as employees are in a relaxed environment. Upward and Downward Communications Downward communication is communication created by directors and managers and passed down the hierarchy of workers in the organisation. In traditional organisations this is the preferred method of communication ie Managers decide what the systems, rules and procedures will be and then they pass these down to employees they manage and supervise. Downward Communication can increase efficiency by synchronising organisational procedures and can ensure that everybody is working towards the same overall aims and objectives. Types of downward communication include job descriptions, appraisals/evaluations, organisational policy, and organisational systems. Although there are advantages to downward communication organisations have began to encourage upward communication. This is communication which originates at the lower level of the employment hierarchy and is then communicated up through the line. Organisations encouraging upward communication believe that everybody is capable of generating thoughts and ideas which may help the organisation to progress, particularly when they are working closely in the area that the idea applies to. Upward communication may increase motivation and make employees feel valued and respected whilst enabling managers to understand how employees are feeling. Furthermore if problems occur at they are more likely to be identified earlier by those working closely in the area that they occur. Types of upward communications include suggestion schemes, feedback forums/surveys, grievance procedures and employee-manager discussions. Lateral Communication This is communication that occurs between employees on the same level in the organisation. As this can involve decision making it can create efficiency as employees do not have to wait for managerial approval. On the other hand if the manager is not kept informed or if the manager fails to set boundaries there is potential for conflict. Diagonal Communication This occurs when communication occurs between workers in a different section of the organisation and where one of the workers involved is on a higher level in the organisation. For example in a bank diagonal communication will occur when a department manager in head office converses with a cashier in a branch of the bank based on the high street. TELECOMMUNICATIONS GLOSSARY Term Definition Telecommunication Communication between parties based in different locations by using a cable, telephone, broadcast or a telegraph. Networking Linking to or more computers together so that information and facilities can be shared. Computers in the same room may be linked together or the organisation may decide to link, computers in different parts of the world together. Local Area Network (LAN) Computers linked by a network without the use of telecommunications. Often the computers linked are based in the same location, group of buildings or site. Wide Area Network (WAN)    Computers linked by a network using telecommunications. Often the computers linked are based in different locations. Teleconferencing    Through the use of telecommunication devices such as video link participants based in different locations communicating is known as teleconferencing. Electronic Data Interchange (EDI) Computer networks used to exchange standard business transaction documents between organisations. QUESTION 3 How might a manager use the GRAPEVINE to his or her advantage? First of all the definition of grapevine is that it is the unofficial way that communication takes place within the organization. It is neither supported nor authorized by the organization. It can also be called gossip. As we know many gossips have no factual bases at all; most of them however do. A manager can use grapevine to his or her advantage if it is an organization where people are used to get their information from these sources. And of course it would be a lie to say that most of us dont gossip, or listen to them at least occasionally, especially if it involves us. Bad information spreads a lot faster than good news, so the information gets to employees real fast. It can happen by a word of mouth, or recently more frequently by electronic means. If an organization is based on honesty, these grapevine information can be a lot more accurate than in an organization that is based on an authoritative culture. Usually there is always some truth to it however. Rumours about major lay-offs, plant closings, and the like may be filled with accurate information regarding who will be affected and when it may occur. This truth component is what a manager can use to his or her benefit. Most employees know that if there is any kind of grapevine information circling in the company, whatever its about can be true. If a manager for example wants to influence employees to work harder, or put more effort into it, he or she can simply start a new gossip, or encourage an existing one about lay-offs that might involve their department. Im not saying this is a nice way to do this, but if nothing else works, why not. This is however not the sign of the good manager, because he or she should be able to use other methods of motivation. A good leader needs to be able to exert high level of effort from his or her employees by motivating them in different ways. Another way of looking grapevine information is its usefulness in supplementing formal information channels. It provides a way for employees to communicate their imaginations and inputs to a certain issue. If management is not really doing a good job with communicating with employees about what is going on in an organization, then grapevine can satisfy these natural needs for information. Grapevine is a healthy human desire to communicate. It is the informal communication channel within the organization. Managers have to acknowledge this fact, and try to use it to their own advantage. Managers interested in creating good communication within the organization will use grapevine as a mean to improve it. The real value of grapevine should be to management is that it reveals issues that generate from those whom interested in or effected by it. Managers can also participate in grapevine. They can be filters, who monitor the information and forward to upper management only the valuable and important components. Grapevine usually pops up during times of uncertain times; therefore management has to make sure that it is providing enough information about important issues. The longer the rumour goes around, the hardest it is to control, so management had to intervene quickly if it wants to avoid its damaging effects. The fact is that grapevine is exists within organizations, and they always have a truth component to them. Management therefore can use them to their own benefits, as a compliment to the official and formal channels of information. How to use the Grapevine effectively in business organizations? Grapevine is an informal channel of business communication. It is called so because it stretches throughout the organization in all directions irrespective of the authority levels. The management can use grapevine to supplement the formal channels of communication. Though it carries some degree of error and distortion, efforts can be made to correct it. Ignoring the grapevine is nothing but to ignore a valuable source of communication. The management can eliminate its negative consequences and, at the same time, it can nourish its positive benefits. The managers have to learn to manage and control it. 1. The management can open up all the channels of organizational communication to present the facts positively before the employees and ther

Accountability for Reasonableness for Priority Setting

Accountability for Reasonableness for Priority Setting Essay Accountability for Reasonableness, for priority setting and resource allocation. INTRODUCTION Pakistan as a developing country has very limited health care resources when  considering a huge population of over 170 million. We have very few tertiary care  hospitals and they are providing services to the whole country. Majority of people in  our country are poor and they are unable to afford the expenses of private hospitals,  though private hospitals are also very few. Thousands of doctors are unemployed  and still we have shortage of doctors. Majority of BHU (Basic Health Units) are  closed as majority of doctors belong to urban areas and they don’t want to work in  remote village areas. In all these situations, it is very difficult to maintain health  care throughout country. In this essay, I will take into account four conditions of  accountability for reasonableness for priority setting and resource allocation. I will  take into account these four conditions by Norman Daniels and I will consider a  tertiary care hospital scenario where I did my house job in medicine ward last year. There were majority of patients suffering from chronic liver diseases (CLD). I will  further continue this essay in discussion. DISCUSSION Before discussing the four conditions of accountability for reasonableness, I will  briefly discuss the case scenario. In my medicine ward as I earlier said majority of  patients were of chronic liver diseases (CLD) and it includes Hepatitis B, Hepatitis C  and cirrhosis of liver. Cirrhosis is the end result of hepatocellular injury that leads  to both fibrosis and nodular regeneration throughout the liver. The clinical features  result from hepatic cell dysfunction, portosystemic shunting, and portal  hypertension. Cirrhosis may cause no symptoms for long periods. One of the major  complications is uppergastrointestinal tract bleeding which may occur from varices,  portal hypertensive gastropathy, or gastroduodenal ulcer. Hemorrhage may be  massive, resulting in fatal exsanguinations or enencephalopathy. Esophageal varices  are found in 50 % of patients with cirrhosis. There are several treatment and  management options available for esophageal varices includin g acute resuscitation  as initial management, pharmacologic therapy, balloon tube tamponade, portal  decompressive procedures and emergent endoscopy. Endoscopic techniques are also  used for prevention of Rebleeding. 1. Now, I will discuss my case scenario. In our  hospital there is one associate professor who is trained in doing endoscopy and  Wednesday is fixed for performing endoscopies. Emergent endoscopy is performed  after the patient’s hemodynamic status has been appropriately stabilized (usually  within 2-12 hours). Majority of poor patients come to hospital in end stage liver  diseases. I have taken this case series as it is a perfect example of scarce resources. Many patients faced problems as their endoscopies were not performed on time as  there was only one day fixed in a week. Now I will apply the four conditions of  accountability for reasonableness for priority setting and resource allocation. These  four conditions are publicity condition, relevance condition, revisions and appeals  condition and regulative condition. Accountability for reasonableness makes it  possible to educate all stakeholders about the substance of deliberation about fair  decisions under resource constraints. It facilitates social learning about limits. It  connects decision making in healthcare institutions to broader, more fundamental  democratic deliberative processes. 2. In my case scenario I will apply the four  conditions as follows. The first one is publicity condition. It states that decisions  regarding limits to care and their rationales must be publicly accessible to clinicians,  patients, and citizens in a publicly administered system. When the patients suffer  the complication of esophageal varices, they are informed about the limited capacity  of the ward to arrange endoscopy as it is done on only Wednesdays and surgical  ward have their own burden of patients to be done endoscopies, due to this reason  we were unable to send patients to surgical wards and the patients and their  relatives mostly agrees on this setup and if their was any emergency only then we  take help from surgical ward or send the patients to any other hospital, so the first  condition is fulfilled. In above scenario second condition is also fulfilled which isrelevance condition. It states that the reasons for limit-setting decisions will be  reasonable if it appeals to evidence, reason, and principles that are accepted as  relevant by fair-minded people who are disposed to finding mutually justifiable  terms of cooperation. In my case scenario the decision making is according to the  framework. The rationales w ere reasonable as it is evident that we had limited  facility of endoscopy and it was fairly accepted by patients and their relatives and  also by doctors and other hospital staff. In our setup priority was given to those  patients who needed emergency endoscopy rather than those who requires  endoscopy for diagnostic procedures. The third condition is revisions and appeals  condition. This condition is a very common problem in government hospitals and in  our scenario we request consultants from surgical ward to do emergency endoscopy  if we think patient is serious and he or she may die if the endoscopy is not  performed on time or in other case the other hospital is very far so that it will be late  if we send the patient to other setup and here comes the function of oncall  consultants also, the oncall consultants plays huge role in these emergency  situations. This third condition is a mechanism for challenge and dispute resolution regarding limit setting decisions, including the opportunity for revising decisions in  light of further evidence or arguments. 3. Thus we fulfill the third condition also by  revising our decisions as I explained above. The fourth and last condition is  regulative condition or enforcement. There is either voluntary or public regulation  of the process to ensure that conditions 1-3 are met. This condition is also fulfilled in  our setup as we communicate with the patient and their relatives about our limited  resources. We are able to convince patients in our case scenario. The hospital  leadership is constantly making efforts to meet the conditions of ‘accountability for  reasonableness’. 4. CONCLUSION In this essay I have discussed all four conditions of accountability for  reasonableness, for priority setting and resource allocation. ‘Accountability for  reasonableness’ is a framework that can be used to guide legitimate and fair priority  setting in health care organizations, such as hospitals. In our beloved country  Pakistan we have few government civil hospitals bearing the burden of millions of  population. We try our best to server the humanity. Iam not claiming this system a  perfect one, it needs a lot of improvement and the example is my case scenario in  which we have very limited resources. Government should establish civil hospitals in  small cities also and should increase their budget; they should recruit more doctors  and nurses as we have shortage. They should train doctors with latest equipments  and provide hospitals appropriate medicines. In addition to this all the hospitals  should be provided with computers and also be made online so that a data system  can be established and it can help the patients and also hospitals for future  reference. I will conclude by saying that in such scarce resources, government sector  hospitals are doing excellent job. REFERENCES Current Medical Diagnosis and Treatment 2004. 43rd edition. Norman Daniels. (2000). Accountability for reasonableness. BMJ; 321; 1300-  1301. D K Martin, P A Singer and M Bernstein. (2003). Access to intensive care  unit beds for neurosurgery patients: a qualitative case study. J. Neurol.  Neurosurg. Psychiatry; 74; 1299-1303. Jennifer AH Bell, Sylvia Hyland, Tania DePellegrin, Ross EG Upshur, Mark  Bernstein and Douglas K Martin. (2004). SARS and hospital priority setting:  a qualitative case study and evaluation. BMC Health Services Research, 4:36

Walking through the Woods :: Personal Narrative

So I went home this weekend, and in my neighborhood there is a small pond and all behind it is just woods. I’ve traveled in these woods as a little kid numerous times, with my friend and her father and he would teach us about the different bugs, trees and rocks we encountered along the way. Going back in the woods this past weekend, I was overcome with a feeling of nostalgia. I remember the times we would try to climb the trees, or chase after the grasshoppers or even just walk around and all the fun we used to have. Walking through the woods alone made me miss all the fun times I had as a child. As I child I was carefree, I knew who my friends were and I had no worries about trust and my relationships with others. Growing up, especially in college I’ve began to question my friends, I have a whole lot more stress and things are definitely not as simple as they once used to be.   Ã‚  Ã‚  Ã‚  Ã‚  The woods were the same woods they used to be, not much has changed, but the person walking through them has. I can not even remember the last time I entered the woods behind the pond, but I know one thing for sure that I have grown up so much since then. Walking through the forest I began to think of all the ways I have changed and I realized a few things. Physically, obviously, my appearance has changed, but emotionally I have changed a whole lot more. I have began to lead a more stressful life, with school work, friends and family always a constant thought in my mind. I have learned that I have begun to trust people too easily and then in the end I am always hurt. I have learned that people are not always who they say or portray themselves as. I do not regret all the things that I have learned, I am actually quite grateful for them. Without all these changes I would not have been able to grow into the person I am today.

My Brother Sam Is Dead :: essays research papers

In the novel, My Brother Sam is Dead, the author demonstrates the effects of war on families, on towns, and even on the children. The author makes it clear that war tears up families more than anything else. As a result of families getting ruined, it affects the children of the family, in this case, by making Tim grow up in a short amount of time. War affects towns, too. Soldiers, some from both sides, raid houses and kill people therefore splitting up towns and communities. War has many bad effects, just like Tim’s father said: â€Å"In war the dead pay the debts of the living.†.   Ã‚  Ã‚  Ã‚  Ã‚  War affects families more than anything else. An example of this is when Tim’s mother drinks rum a lot when she finds out that her husband and son are dead or are going to get killed. Once she starts to drink, she does not care about Tim or Sam. So in this case, war caused her to drink and it killed half of her family, both of which ruined the Meeker family. One of war’s worst by-products is ruining families. Even though war affects families the most, there are still other bad effects on children and on towns.   Ã‚  Ã‚  Ã‚  Ã‚  The second bad by-product of war is the effect on children. First, war sometimes kills children’s parents or older siblings, throwing their responsibility on to the younger children’s shoulders. The children will never have a normal life of playing with others because they are too busy taking care of things. In the novel, MBSID, Tim had to grow up fast. The reason for this is that his father got killed and his brother, Sam, got killed. So Tim had to do all of the man work around the tavern.   Ã‚  Ã‚  Ã‚  Ã‚  There is one last main effect from war. It is the effect on towns and communities. It ruins towns and communities by ruining families and children. You can think of it as a link chain: the families and children are the links of the chain, and the town is the whole chain. If one family gets ruined, the link is gone, making it an incomplete chain or town.