General Motors Case Study Essay Essay Example

General Motors Case Study Essay Essay Recently there have been doubts concerning the survival of General Motors. These doubts stem in part from the firm’s unawareness of the automotive industry’s external business environment. This includes the consumer’s view of current events and economic trends. There are also key issues such as the emergence of technology that are related to the automobile industry that are covered by trade publications. [i] Doubts also stem from problems associated with G. M. s internal business environment. These problems likely arose from the firm following the wrong generic strategy. For many years G. M. ’s position of dominance was built by designing cars for different customers by separate divisions. This gave them an extensive brand lineup which it used as its primary weapon in beating back both foreign and domestic rivals. [ii] However, in the 1980s Japanese Korean automobile manufacturers posed a significant problem to G. M. by their successful entry into the ind ustry which eroded their profits. It was at this time that consumers threatened G. M. ’s market share by forcing down prices when these foreign automakers successfully introduced their brands into the U. S. market. [iii] Automobile manufacturing has not been an attractive industry for G. M. in recent years. For a long time G. M. executives had decided to carry many different brands which required them to offer over 60 different models of cars and trucks. There were high productions costs associated with manufacturing and testing these automobiles these costs were passed onto the consumer. One analyst has suggested that G. M. hould have begun planning cutting back on its car divisions in the 1980s, but instead it actually added more brands. When G. M. ’s market share began to decline, it became difficult to continue to design and market cars under several brands. [iv] This left G. M. open to the threat of new entrants in the automobile industry. Another way automobile manufacturing has not been an attractive industry for G. M. in recent years is its l oss in profitability. In 2005 it announced a $10. 6 billion loss, the first in 12 years. In 2006 its net losses decreased to $1. 978 million. In 2007 they increased to $38. 32 million in 2008 they decreased to $30. 86 million. [v] These fluctuations may be due to Wagoner trying to deal with G. M. ’s problems as production capacity is balanced with profitability. There are emerging trends that are changing the entire automobile industry such as globalization;[vi] however, G. M. has been late in jumping on this bandwagon. Another trend is shorter product development cycles which give automobile manufacturers a shorter time to market. [vii] This gave Japanese automobile manufacturers a low entry barrier into the automobile industry in the 1980s. We will write a custom essay sample on General Motors Case Study Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on General Motors Case Study Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on General Motors Case Study Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer There are also shifting roles responsibilities away from original equipment manufacturers to integrators/suppliers. [viii] This may have been another trend that G. M. was not sufficiently aware of causing it to lose market share. By looking at product line positions on strategic group maps, G. M. offers the same breadth of product line at an equivalent price as some of its closest rivals including Toyota, Honda, Nissan. All of these firms compete at both the lower and higher ends of the market along with G. M. [ix] Yet production costs per unit were significantly higher at G. M. ompared to these other automobile manufacturing firms that didn’t carry as many different brands. It was difficult for G. M. to achieve economies of scale because it had to spread these high costs of production over the number of automobiles it produced. [x] Consequently, this left G. M. open to the threat of new entrants in the automobile industry. Since Wagoner took over the firm in 2000, he has tr ied to implement and carry out a series of restructuring plans. The firm has undertaken its most serious efforts of restructuring but it has been very difficult to successfully complete them. Apparently problems grew as a result of mistakes made by G. M. ’s management over the last 30 years and it has taken time for Wagoner to deal with them. One way he has attempted to do this is by cutting back G. M. ’s production capacity[xi] which may have been prevalent in the auto industry at the time. [xii] Moreover, excess capacity often leads to escalating price cutting further eroding the automobile industry’s profits. [xiii] Wagoner’s restructuring plans provided for the four different geographic units to collaborate on designing, manufacturing, and marketing. Key decisions about product development began to be shifted to G. M. ’s headquarters. Efficiencies have been created which are likely to reduce its overall cost structure in the next few years. Through greater integration, G. M. has been able to reorganize product development making it speedier, cheaper, and more effective. Moreover, it has adopted practices perfected by the Japanese to improve the process. There has also been an increase in percentage of parts reused from one generation of G. M. cars to the next. xiv] There are conditions in the internal environment of G. M. that have contributed to its problems. A useful framework for gaining insight into any organization is to view it as a sequential process of value-creating activities. This is useful for understanding the building blocks of competitive advantage. The value of G. M. ’s automobiles is the amount that consumers are willing to pay for them and is measured by its total revenue. Its total revenue is a re flection of the price its automobiles command the quantity it can sell. xv] The firm has not been profitable because its costs of creating and manufacturing automobiles have exceeded its total revenue. One measure that is helpful in understanding a firm’s profitability is its profit margin. It is intended to measure how efficiently it uses its assets and manages its operations. G. M. ’s profit margin from 2006 to 2008 was -0. 95%, -21. 4%, -20. 7% respectively. This tells us that, in an accounting sense, in 2006 it lost about $0. 01 in profit for every dollar in sales it generated. In 2007 2008 it lost about $0. 1 in profit for every dollar in sales it generated. Return on assets from 2006 to 2008 was -3. 07%, -64. 1%, -74. 7% respectively. [xvi] These figures all show that G. M. has been an unhealthy firm. To further show G. M. ’s unhealthiness, its competitive position is strong if it can create value for consumers that exceed the costs of production. One way it can do this is to improve its inbound logistics. This is one of the primary activities of an organization that uses value-creating activities and it contributes to the physical creation of G. M. ’s automobiles. There is an efficient inbound logistics value-creating activity known as just-in-time inventory systems. However, this activity has been epitomized by Toyota—one of G. M. ’s major competitors. This is a system in which parts deliveries arrive at the assembly plant only hours before they are needed. It plays a vital role in fulfilling Toyota’s commitment to fill a buyer’s new car order in just five days. This is in sharp contrast to most competitors in the automobile industry. It is even three times faster than Honda Motors which is considered to be the industry’s most efficient in order follow-through. Toyota achieves such a fast turnaround because all of its suppliers are linked to the company by way of a computer on a virtual assembly line, parts are loaded on trucks in the order in which they will be installed, parts are stacked on trucks in the same place each time to help workers unload them quickly, and deliveries are required to meet a rigid schedule. [xvii] In evaluating how G. M. is performing it is important to take into account its performance from a historical perspective and how it compares with industry norms and key competitors. Short-term solvency, or liquidity, measures provide information about G. M. ’s liquidity. The primary concern is its ability to pay its bills over the short-run without undue stress. The book values and market values of current assets current liabilities are likely to be similar; however, sometimes they can change fairly rapidly, so they may not be a reliable guide to the future. The current ratio for G. M. for 2006, 2007, 2008 is 0. 93, 0. 86, 0. 56 respectively. Since current assets current liabilities are converted to cash over the following 12 months in any given period, the current ratio is a measure of short-term liquidity. From 2006 to 2008, G. M. had $0. 93, $0. 6, $0. 56 in current assets for every $1 in current liabilities respectively. A current ratio less than one would mean that net working capital is negative. This is one indication that G. M. is an unhealthy firm. An apparent low current ratio normally may not be a bad sign for a firm if it had large reserve of untapped borrowing power;[xviii] however, G. M. needed to borrow mone y from the government because it didn’t this reserve. Inventory is often the least liquid current asset. Moreover, book values are also the least reliable as measures of market value of inventory because quality isn’t considered. Some inventory may later turn out to be damaged, obsolete, or lost. To further evaluate liquidity, the quick ratio is computed just like the current ratio, except inventory is omitted. G. M. ’s quick ratio for 2006 to 2008 was 0. 64, 0. 57, 0. 34 respectively. As these years have progressed, inventory has accounted for more and more of G. M. ’s current assets which is often a sign of short-term trouble. The firm may have overestimated sales and overbought or overproduced as a result. This would mean that it may have a substantial portion of its liquidity tied up in slow-moving inventory. [xix] G. M. s long-term solvency ratios are intended to address its long-run ability to meet its obligations. This is also known as its financial leverage. The total debt ratio takes into account all debts of all maturities to all creditors. G. M. ’s total debt ratio for 2006 to 2008 was 1. 03, 1. 25, 1. 95 respectively. This means that it had $1. 03, $1. 25, $1. 95 in debt for every $1 in assets for 2006, 2007, 2008 respectively. Therefore, from 2006 to 2008 for every $1 in debt G. M. was short $0. 03, $0. 25, $0. 95 in equity respectively. G. M. ’s debt-equity ratio from 2006 to 2008 was -4. 45, -5. 00, -2. 05 respectively. Its equity multiplier for these years was -3. 45, -4. 00, -1. 05 respectively. Another measure shows how well G. M. has interest obligations covered. In 2006, for every $1 G. M. owed in interest it could only pay $0. 71. In 2007, for every $1 it owed in interest it was short $2. 15. In 2008 there was no interest reported as paid by G. M. [xx] Asset management, or turnover, measures show the efficiency with which G. M. uses its assets. They describe how efficiently of intensively G. M. uses its assets to generate sales. Its inventory turnover from 2006 to 2008 was 8. 23, 8. 36, 9. 10 respectively. This means that it sold off, or turned over, the entire inventory this many times during each of these years. Moreover, on average, inventory sat 44 days in each of 2006 2007 and 40 days in 2008. [xxi] Part of G. M. ’s restructuring plan is to get its four different geographic units to collaborate with one another on designing, manufacturing, and marketing. Key decisions concerning product development gradually began being made at G. M. ’s headquarters rather that at the various divisions. These changes have created efficiencies which are likely to reduce its overall cost structure in the future. These efforts at greater integration have enabled G. M. to reorganize the product development process and make it speedier, cheaper, and more effective. [xxii] Moreover, as G. M. began to share designs and parts across divisions in order to cut costs, it led to a loss of distinctiveness between the different brands. Moreover, since it offered so many different brands, it was limited in the number of new models it offered in any given year. G. M. ’s image was tarnished because many of its cars looked older. It was also difficult for the firm to make adequate investments to build any of its brands. xxiii] A framework for analyzing G. M. ’s internal and external environment is a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. This approach considers both external and internal factors simultaneously. G. M. ’s Strengths and Weaknesses refer to the internal conditions of the firm—where it excels and where it may be lacking relative to competitors . Its Opportunities and Threats are environmental conditions external to the firm. [xxiv] A strength of G. M. is its early shift in emphasis to bigger sports utility vehicles (SUVs) in the 1980s. This was caused by a change in the automobile industry in which the firm lost smaller-car customers to more nimble and inventive Japanese competitors. The bigger SUVs provided G. M. with ample profits in spite of its inflated cost structure. By the mid-1990s it became the biggest producer of full-size SUVs. It was at this time that G. M. ’s North American operations were very profitable only because of these big vehicles. However, the firm lost a great deal of money on most of its passenger cars. [xxv] One of G. M. ’s weaknesses has been its loss of profitability. This is probably due to the problems that arose over the last 30 years. During this time G. M. was using its resources and capabilities to design cars for different customers by separate divisions. The firms operations had been partnerships of somewhat independent geographic divisions that rarely worked with one another. This focus on an extensive brand lineup prevented G. M. from being more aware of globalization in a timely manner. Consequently, its overseas operations have failed to generate sufficient profits because it has had to respond to stronger competitors that have competed on a more global basis. xxvi] This correlates with its failure to adequately survey it external environment to predict environmental changes and detect changes underway. If G. M. had done this it would have been made aware of critical trends and events before changes developed a discernable pattern. Armed with this knowledge it would have been able to act proactively rather than being forced into reacti ve mode when Japanese automobile manufacturers stole its market share. There have also been product and manufacturing innovations the availability of substitute products. G. M. has been struggling with its response to emerging alternate technologies. It was the first to introduce an electric car in 1998 but it ended up scrapping the model a year later. Then the firm shifted its efforts to developing a new fuel-cell car. In 2008, G. M. began once again to further develop an electric car which it plans to introduce this year. [xxvii] G. M. had been facing threats from the external environment because of the low entry barrier it unwittingly gave to Japanese automobile manufacturers. If the firm had become better knowledgeable about the external business environment it would have been more responsive to it. This would have allowed it to predict environmental changes and detect changes already underway. One way it could have done this is to ask its customers questions about its products and services. This would have given G. M. knowledge of what consumers were looking for next. It would also have alerted G. M. to critical trends and events. Moreover, if executives at G. M. had read trade publications related to the auto industry it would have help them identify key issues. [xxviii] For example, it may have been aware of Japan’s shorter product development cycle giving their manufacturers a shorter time to market. By offering its extensive brand lineup, G. M. had been following a differentiation strategy which does not fit with this SWOT analysis. It is not appropriate because it needed to concentrate its efforts in developing a low-cost strategy. A competitive advantage based on low cost would have appealed to the industry-wide market. This would have included the construction of efficient scale facilities, cost reductions overhead control, avoidance of marginal customer accounts, and cost minimization in the value chain such as R D. [xxix] There are three plausible strategic alternatives that G. M. ’s Board of Directors may consider. The first is to further restructure the four different geographic regions in order to get them to collaborate more closely with one another on designing, manufacturing, and marketing. The firm would become more globalized yet essentially continue to offer an extensive brand lineup. This alternative suggests that more product development decisions be made at G. M. ’s headquarters rather than at the various subsidiaries. An advantage of this alternative is that it is somewhat of a low-cost strategy. Moreover, moving the product development process to the firm’s headquarters may help to continue to make it more efficient, affordable, and effective. A disadvantage of this strategy is that G. M. won’t have the costs savings associated with focusing on a narrower segment of consumers. The second alternative is similar to the first, but the brand lineup would be significantly reduced. An advantage of this strategy is the costs savings associated with focusing on a narrower segment. A disadvantage of this strategy is G. M. would lose some of its customers to other competitors who focus on different segments. The third alternative is for G. M. to move toward greater globalization yet limit the amount of collaboration the various divisions have with one another. The advantage of this strategy is the various divisions can remain somewhat autonomous allowing them to provide for the wants of consumers in its particular region or within its shipping jurisdiction. A disadvantage of this strategy is it will be once again difficult for G. M. to achieve economies of scale. The advantage of all three strategies is the move toward greater globalization. Whatever strategy G. M. decides to implement, it must work toward greater globalization since it has been caught unaware of this trend. By concentrating on globalization it should be able to distribute automobiles to more and more consumers. Beyond that, I believe that the best strategic alternative for G. M. based on its circumstances is the second one. I am recommending this strategy because, in order to compete successfully in the automobile industry, it is important that G. M. reduce its brand lineup. By focusing on a narrower segment of consumers, the firm should be able to eventually experience cost savings. Although it may lose customers to other competitors in the industry, it may eventually make up lost profits by making an effort to develop a focus strategy. In order to implement this strategic alternative, G. M. ’s four different geographic regions must have better access to collaboration. This may include videoconferencing and other forms of electronic communication. This would enable the sharing of ideas concerning, among other things, which brands and models need to be reduced or eliminated and which ones need to be retained. Moreover, all areas of product development would have to be moved to G. M. ’s headquarters. This may also require that the firm expand its capacity in Detroit, MI to accommodate designing, manufacturing, and marketing. This would have to occur after G. M. ’s extensive brand lineup is reduced to those brands believed to be the most profitable. The firm must understand that the plausibility of this recommendation is based on the viability of the brands it decides to retain. It is also based on G. M. ’s continued surveillance of the both the external and internal business environments. Problems may occur if there are significant changes in the industry that it has not been made aware of such as economic instability in a nation that imports G. M. automobiles.

Free Essays on To an Athlete Dying Young

AE Housman Reading this poem I had several different impressions. First reading it in a literal aspect I saw a child who ran races and perhaps won. Even if he didn’t win he was made to feel like a winner. â€Å"And home we bought you shoulder high† (line 4) this says they bought him home proudly but not necessarily that he won. Next something happens to the runner that makes him unable to run, perhaps old age but I think death because of the following lines: Will flock to gaze the strength less dead†(line26) I also think there were key statements throughout to somewhat changed my thought pattern. In line 20 he says, â€Å"and the name died before the man.† This is saying that often as we grow older and began to change people forget all of the things that made us who we are. An example of this would be some older sports figures. Though the man lives own his life may be forgotten by many. I guess you could also compare this to life. We are young and boisterous one day (such as the runner in the beginning) and as time goes on we began to somewhat fall apart as we continue further through the... Free Essays on To an Athlete Dying Young Free Essays on To an Athlete Dying Young AE Housman Reading this poem I had several different impressions. First reading it in a literal aspect I saw a child who ran races and perhaps won. Even if he didn’t win he was made to feel like a winner. â€Å"And home we bought you shoulder high† (line 4) this says they bought him home proudly but not necessarily that he won. Next something happens to the runner that makes him unable to run, perhaps old age but I think death because of the following lines: Will flock to gaze the strength less dead†(line26) I also think there were key statements throughout to somewhat changed my thought pattern. In line 20 he says, â€Å"and the name died before the man.† This is saying that often as we grow older and began to change people forget all of the things that made us who we are. An example of this would be some older sports figures. Though the man lives own his life may be forgotten by many. I guess you could also compare this to life. We are young and boisterous one day (such as the runner in the beginning) and as time goes on we began to somewhat fall apart as we continue further through the...

Viewpoint of Leopold and Schweitzer about Artificial Destruction of Assignment - 3

Viewpoint of Leopold and Schweitzer about Artificial Destruction of Ecosystem Centers - Assignment Example Various ideas about artificial destruction of ecosystem centers on ethics as a tool of human conscience. The moral obligation of man towards the non-living objects and other living organisms has been proposed by two environmental thinkers in a divergent perspective but convergent basis. Leopold is a proponent of land ethic as a critical moral instrument that should guide human actions towards nature. His claim emphasizes the overriding perception of man that land is a property. His analogy of Odysseus killing his maid servants is a comparative scenario of how man treats land. He argues against the human notion that land should be treated as personal property that can be exposed to destruction at will. Instead Leopold explains that man should consider land as part of ecology in which man is also a member (KohaÃŒ k 88). The point is that land serves as the habitat of several other organisms besides man. In that respect, man’s effort to destroy land interferes with the otherwise complex biotic and abiotic system that constitutes nature.Land ethics is used by Leopold to emphasize the need for a moral conscience of man in his relationship with soil. The description of land in this case encompasses water, soil, wildlife and all living and non-living organisms that make up ecosystem. The relationship that exists between man and land is more of symbiotic and property aspect should not be upheld. The land is considered the source of energy through food chain that ends up sustaining man. Leopold argues that the working of the ecosystem is complex and limited knowledge of man which prompt violent attack on nature is not fair. Man is the only organism with conscience and has the obligation to exercise morality in his treatment of nature. In this respect, Leopold champion for responsibility on the side of man in his desires to satisfy societal needs through nature. Other animals and plants may not have the conscience but it is evident that they always pose limited r isk to the same ecosystem that supports them. The history of evolution and biblical assertions of human superiority over nature assigns moral obligation to do the right thing for sustainable existence.

Persuasive Speech-Problem & Solution Design Essay

Persuasive Speech-Problem & Solution Design - Essay Example Marriage is typically defined as the uniting of two people of the age of majority of their own free will and volition. In this way, regardless of culture contractual unions (often referred to as marriage) are recognized by the law of the state in every nation on the face of the planet. Child marriage is a situation where children are subjected to matrimony before they have achieved the legal marriage age. In the Middle East nearly half of Yemeni girls are married before they reach eighteen years of age. In some instances, marriages occur even before the tender age of 8. The law in Yemen set the minimum age at one that is approved for marriage to be 15 years; however, traditional customs more often than not continuously flout this law. 1. This is due in part to the fact that the law was continually interpreted differently by different individuals, the laws was changed in 1999 to allow marriage only after the point in time in which a girl reached the age of puberty. However, the issue with the change in the law meant that many tribal elders interpreted puberty to be as early as the age of 9. In the actual practice, it can be said that the law in Yemen allows women of any age to be able to wed, but it is forbidden to practice sex with them until they achieve the age where it is now considered suitable to do so. 2. The law was later to be raised from the minimum age of marriage to be 18 years after a girl, Nujood Ali, 10 years of age, in April 2008 was able to be granted divorce successfully after being raped under the set circumstances. Much later in 2008, a council for maternal care and childhood established a proposal for the minimum age to be defined at 18 years and was passed as law in April 2009. However, this law was to be dropped the very next day after maneuvers by parliamentarians opposed to it, and negotiations are still ongoing for the legislation to be

Jollibee Case Study Essay Example for Free

Jollibee Case Study Essay 1. Introduction Anil K. Gupta and Vijay Govindarajan argue in their article, â€Å"Knowledge flows and the structure of control within multinational corporations†, that mainly all previous research on strategic control within multinational companies (MNCs) has paid attention to why these choose to go abroad. They instead argue that for successful offshore business, one must understand how communication flows within the different sub-units of the organization. As Jollibee Foods Corporation considers whether they should establish a fourth store in Hong Kong, it faces several challenges. One of the main challenges regards knowledge transfer between its Filipino facilities and the newly established ones abroad. It is therefore relevant to look at the following research question: What consequences does the current â€Å"strategic control over its subsidiaries† have on the knowledge transfer between the Jollibee headquarters on the Philippines and the offshore Jollibee Food plants in Hong Kong? In answering the research question, we will start by explaining the framework of Gupta Govindarajan’s (1991) on different kinds of subsidiaries, with attention paid to knowledge transfer and their related control instruments. Further we will examine what kind of challenges Jollibee Foods Corporation is facing with its expansion to Hong Kong. Finally, the above analysis will provide us with information about the existing opportunities on the Chinese market and will enable us to suggest a reconstruction of the offshore business in Hong Kong to make it more successful. Jollibee meets several tasks in their offshoring project, but due to space limitation there will in this paper only be focus on two selected challenges, the challenges of adjusting to Chinese taste and their management structure. 2. Jollibee Foods Construction and its strategic control over its subsidiary in Hong-Kong Gupta and Govindarajan (1991) proposed that there exists a certain association between different types of subsidiary units and the strategic corporate control of that subsidiary. They defined four ideal types as; Implementor, Global innovator, Integrated Player and Local Innovator, based on the amount of knowledge that flows and the direction of this knowledge, between the subsidiary and the rest of the MNC. Upon Tingzon ´s arrival the main strategy of the offshore business has been â€Å"flag planting†. Flag planting aims at establishing a presence in each market before competitors, and so, emphasizing at implementing customer expectation, influencing taste and building brand (case p. 11). The initial plan in Hong Kong has been to become one of the major players in the market fast. The previous international strategy meant that the subsidiaries in Hong Kong functioned as implementors. An implementor is characterized by a high degree of knowledge inflow from the headquarters but with a low degree of knowledge outflow; hence mainly applying the strategy used in the parent company without any local adaption (Gupta and Govindarajan 1991). Functioning as an implementor has meant that the established Hong Kong stores have not been engaged in any knowledge creation, but simply followed instructions from the Filipino headquarters. Furthermore one can argue that Jollibee’s approach to Hong Kong has been to primarily implement the already existing practices from the Philippines. For example, the menu offered in Hong Kong is almost the same as the Filipino one, knowledge of what to sell has simply been brought in from headquarter (case page. 12) Further evidence arguing for that the Hong Kong subsidiary has been operating like an implementor can be seen in the management transfer of the CEO’s brother-in-law, from the parent company to the Hong Kong subsidiary (case page 12). In addition, the store-level managers were all Filipino while little crew were Chinese and staffing problems consequently grew. To solve the problem the Manila based Franchise Service Manager worked continuously with Hong Kong for more than six months, without success. In 1997 a dispute over discipline between the four Chinese Managers, and the five Filipino Managers, resulted in the Chinese Managers leaving Jollibee with only Filipino crew left (page 12). This points towards the subsidiaries in Hong Kong adapting the characteristic of an implementor, e.g. pure inflow of knowledge from the parent company and little outflow of knowledge from the Hong Kong subsidiary. Furthermore is the overall â€Å"flag planting† strategy of Jollibee very i ndicative of the skewed power balance between Jollibee and its subsidiaries. 3. Organizational Challenges Jollibee experienced the internal challenges of organizational culture clash between its implemented Filipino workers and the Chinese staff. Furthermore the implementation of the international menu was not as successful as expected (case p. 13). The strategy of focusing on Filipino expatriates in new markets, might has helped Jollibee’s entry to the Hong-Kong market, since they already had a distinguished costumer group of Filipinos. But as Tingzon asks in the case â€Å"might we risk boxing ourselves into a Filipino niche that prevents us from growing enough to support operations in each country?† (case p. 11). We found that the expatriate-led strategy have prevented further expansion of the company on the Hong Kong market. This is due to the local knowledge that resides in Chinese workers and managers are not exploited when only employing Filipino managers. As stated above, in the early entry into the Hong Kong market, Jollibee did also employ Chinese managers but due to their sole implementation of inflows from headquarters, clashes arose between the Chinese and the Filipino managers. Furthermore one major challenge to successfully establish a fourth store and gain more market share is to adapt the prevailing menu to the Chinese taste. The main challenge for Jollibee now is how to realize, and best use, the knowledge that resides in Chinese workers. 4. Altering the Strategy for the Hong Kong Subsidiary From the above section we can conclude that there exists several challenges of how the subsidiary in Hong Kong has previously been structured, for example has one of the sub-franchisees tried to suggest changes to the menu. To be able to attract more local costumers he proposed low fat chicken and Chinese tea, as he sensed a demand for these products among the Chinese people (case p. 12). He has tried to implement these changes for several of months but has not yet received a go-ahead from the headquarters. This indicates that Jollibee mainly sees its subsidiaries as implementors, without any outflow of local knowledge to the other subsidiaries. But for Jollibee to succeed in opening a fourth store and increase its market share on the Hong Kong market, reconstruction and adaption to the local market is crucial. The top management saw a high profit potential in Hong Kong, and therefore urged Tingzon to open the fourth store. But as the profit potential is high, the competition in Hong Kong for similar food companies, such as McDonalds, is also very intense. Jollibee Food Construction does not have the competitive advantage of a first mover and is not alone on the market. For example has their main competitor, McDonald’s, both stronger brand recognition in the Hong Kong market and they are stronger financially. Hence Jollibee has to take on a different subsidiary strategy than the â€Å"implementor†, in order to success (Hymer p. 61). With this in mind the strategy of the Hong Kong sub-division can become a successful sub-division if it adapts the characteristics of a local innovator instead of trying to be an implementor, with both low inflow and outflow of knowledge. One main challenge for Jollibee is to attract more local employees and as Gupta and Govindarajan’s proposition 3 states; under norms and administrative rationality will the composition of the top-management for the specific subsidiary consist of mainly locals if the division acts as a local innovator (Gupta and Govindarajan 1991). As an implementor has the possibility for autonomous initiative been low while it as a local innovator exists space to adapt to the local environment, e.g. for Jollibee to take on a more Chinese menu. 5. Conclusion In conclusion, as Jollibee decide whether or not to establish one more store in Hong Kong, they have to look over their strategic control over its subsidiaries. As examined above, the company has mainly viewed their subsidiaries as implementors. We found this international strategy insufficient, and that it hindered them to fully exploit the market potential in Hong Kong. The prevailing challenges for Jollibee now is how to realize and best use the knowledge that resides in Chinese workers. Due to limitations of the paper, it is only a fraction of possible explanations that have been highlighted and these revolve primarily around the importance of increasing the local engagement in the Hong Kong subsidiary, and increase the local innovation towards more local taste. Hence we argue for Jollibee’s subsidiaries in Hong Kong to adapt towards a local innovator role. 6. Bibliography Case: Bartlett, C. A. (2001). Jollibee Foods Corporation (A): International Expansion. Harvard Business School Gupta, A.K.,Govindarajan, V. (1991). Knowledge flows and the structure of control within multinational corporations. Academy of Management, Review 16(4) 768-792 Gupta, A.K., Govindarajan, V. (2000). Knowledge flows within multinational corporations. Strategic Management Journal 21, pp. 473-496. letto-Gilles, G. (2005). â€Å"Hymer ´s seminal work†, in Part III Modern Theories in Transnational Corporations and International Production. Academic Books, Copenhagen Business School. Published by Edward Elgar Publishing, Inc. Schlegelmilch, B., Ambos, B., Chini, T. (2003/4). Are you ready to learn from your offshore affiliates? European Business Forum, 16

War of the Rats Essays -- David L. Robbins Literature Essays

War of the Rats War of the Rats, written by David L. Robbins, and the movie Stalingrad, directed by Joseph Vilsmaier, are two excellent sources to be used in furthering one’s understanding of the second world war and specifically the battle of Stalingrad. Both of these sources cover generally the same material. They both are dramas about the battle of Stalingrad, yet each has their own unique perspective upon the war. These two sources can be used together to increase one’s knowledge on the subject at hand. War of the Rats, a book that has been recently published is basically a war inside of a war. It focuses more on a personal battle of two men then it does on the battle of Stalingrad on a whole. The book has four main characters and is mostly based on these people. Robbins seems more content on telling his drama he is revealing to the reader then giving actual historical accounts on the battle of Stalingrad. Robbins story starts out about the Russians skilled assassin, Army Chief Master Sergeant Visily Zaitsev. Zaitsev is a famed sniper, known for killing the opposing Germans with ease. The Germans realize how dangerous of a weapon Zaitsev is, and counter with their own master sniper, S.S. Colonel Heinz Throvald. Throvald is sent with one mission; kill Zaitsev. Also included in the plot of Robbins’ book are Tania Chernova, Zaitsev’s assistant, and Corporal Nikki Mood, a composite German soldier. Tanis Chernova and Vasily Zaitsev eventually fall in love. The novel eventually ends with the two master snipers, Throvald and Zaitsev, crossing each other’s paths. In somewhat of a cliffhanger, the book finishes off with both Throvald and Zaitsev putting crosshairs on each other’s head. Although it is very entert... ...ery educational. Both are based on factual events. War of the Rats is more about two individual people than the actual war, but still gives a brief overview about the battle of Stalingrad. Stalingrad focuses on the suffering of the German soldiers and probably is more useful than the War of the Rats in the sense that it covers the actual war more. However, both are highly recommended and go hand in hand. One would probably understand the importance of the Second World War on the Eastern Front in world history most if he or she looked into both sources. Works Cited Beschner, M. George, and Alfred S. Friedman. Youth Drug Abuse. Toronto: D.C. Heath, 1980. Dogan, Shamed. â€Å"Legal Drinking Age Should Drop to 18.† High Ground.com. 1997 February 14, 1997 Group Survey of 100 people. â€Å"Should the Legal Drinking Age Be Lowered to Eighteen?† May 25, 2000

An investigation into the characteristics of a filament bulb Essay

I will set the voltage at the certain voltages and I will repeat the experiment twice. This will give me a set of results to compare my originals to. When performing this experiment I must carry out a few safety procedures. I must make sure I do not overpower the bulb as it could break. I must not leave my wires dangling as this is a safety hazard. I must try and work away from other experiments as this will give me more space to work on and minimise hazards to the other experimenters in the room. I would predict that as the voltage goes up so do the readings on the ammeter and voltmeter. There will be a positive strong line on a line graph that would rise rapidly but as the voltage is increased, the curve will flatten out. To make the experiment as fair as possible I will use the same filament bulb and other materials throughout the experiment. Most of the factors however cannot be controlled. This includes the wire resistance which we cannot change or tell if it is bad or good. Temperature will also affect the resistance of the wire very slightly. However slight this is it is still a factor which would determine my results. This can be controlled to a certain extent by performing the experiment all at the same time when the temperature changes will be very slight. Volts Test 1 Test 1 Test 2 Test 3 Ammeter Voltmeter Ammeter Voltmeter.