Psy 240 the Nature-Nurture Issue Essay

The Nature-Nurture Issue The nature versus nurture perspectives have been have been argued for centuries. The pro-nature perspective follows the theory that genetics and biological inheritance determine behavior, internal forces or stimuli; the pro-nurture perspective follows the belief or theory that experience and environment determine behavior, external forces or external stimuli. The psychology field known as biopsychology researches the aspects of both perspectives using critical thinking and research practices to determine the effects of both of these perspectives on human behavior; the control groups used in experimentation can be human or non-human subjects of a similar species. (Pinel. (2009)). The flaw in attempting to determine what degree of behavior is attributed to nature and what degree is attributed to nurture is that both of these perspectives play a role in how and why a behavior is exhibited. Some of the behaviors which individuals exhibit can be linked to animal or primal instinct, these are behaviors based on nature; however, we must consider that the primal fears we have as children such as fear of the dark, often no longer exhibited in the individual as an adult. This change in the behavior can be attributed to experience over time, the nurture perspective agrees with experience’s influence in behavior. (Pinel. (2009)). The brain is the central focus of the study of biopsychology, and researchers have determined that the brain’s functions are responsible for human behavior; research has determined the neuroplasticity theory of the brain changing based on both genetics and experience. The neuroplasticity of the human brain can be used as an example of why it is important to consider how much of behavior is based on genetics and how much is based on environment; however, it would be difficult if not impossible to determine what portion of behavior is nature or nurture because both effect behavior based on the neuroplasticity theory There are genetic factors that can affect behavior; however, experience and nurturing can assist in controlling some behaviors based on learning or the xpectations set for an individual. This idea makes sense that both genetics (nature) and environment (nurture) play important roles in behavior, the behavior of an individual may change over the course of a lifetime. (Pinel. (2009)). Reference Pinel, J. P. J. (2009). Biopsychology. Boston, MA: Pearson.

Marketing Mistakes and Successes

ELEVENTH EDITION MARKETING MISTAKES AND SUCCESSES 30TH ANNIVERSARY Robert F. Hartley Cleveland State University JOHN WILEY & SONS, INC. VICE PRESIDENT & PUBLISHER EXECUTIVE EDITOR ASSISTANT EDITOR PRODUCTION MANAGER PRODUCTION ASSISTANT EXECUTIVE MARKETING MANAGER ASSISTANT MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR SENIOR DESIGNER SENIOR MEDIA EDITOR George Hoffman Lise Johnson Carissa DoshiDorothy Sinclair Matt Winslow Amy Scholz Carly DeCandia Alana Filipovich Jeof Vita Arthur Medina Allison Morris This book was set in 10/12 New Caledonia by Aptara ®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Copyright  © 2009, 2006, 2004, 2001, 1998, 1995, 1992, 1989, 1986, 1981, 1976 John Wiley & Sons, Inc. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www. copyright. com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc. 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www. wiley. com/go/permissions. To order books or for customer service please, call 1-800-CALL WILEY (225-5945). Library of Congress Cataloging in Publication Data Hartley, Robert F. , 1927Marketing mistakes and successes/Robert F. Hartley. —11th ed. p. cm. Includes index. ISBN 978-0-470-16981-0 (pbk. ) 1. Marketing—United States—Case studies. I. Title. HF5415. 1. H37 2009 658. 800973—dc22 2008040282 ISBN-13 978- 0-470-16981-0 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 PREFACEWelcome to the 30th anniversary of Marketing Mistakes and Successes with this 11th edition. Who would have thought that interest in mistakes would be so enduring? Many of you are past users, a few even for decades. I hope you will find this new edition a worthy successor to earlier editions. I think this may even be my best book. The new Google and Starbucks cases should arouse keen student interest, and may even inspire another generation of entrepreneurs. A fair number of the older cases have faced significant changes in the last few years, for better or for worse, and these we have captured to add to learning insights.After so many years of investigating mistakes, and more recently successes also, it might seem a challenge to keep these new editions fresh and interesting. The joy of the chase has made this an intriguing endeavor through the decades. Still, it is always difficult to abandon interesti ng cases that have stimulated student discussions and provoked useful insights, but newer case possibilities are ever contesting for inclusion. Examples of good and bad handling of problems and opportunities are forever emerging. But sometimes we bring back an oldie, and with updating, gain a new perspective.For new users, I hope the book will meet your full expectations and be an effective instructional tool. Although case books abound, you and your students may find this somewhat unique and very readable, a book that can help transform dry and rather remote concepts into practical reality, and lead to lively class discussions, and even debates. In the gentle environment of the classroom, students can hone their analytical skills and also their persuasive skills—not selling products but selling their ideas—and defend them against critical scrutiny. This is great practice for the arena of business to come.NEW TO THIS EDITION In contrast to the early editions, which exa mined only notable mistakes, and based on your favorable comments about recent editions, I have again included some well-known successes. While mistakes provide valuable learning insights, we can also learn from successes and find nuggets by comparing the unsuccessful with the successful. With the addition of Google and Starbucks, we have moved Entrepreneurial Adventures up to the front of the book. We have continued Marketing Wars, which many of you recommended, and reinstated Comebacks of firms iii iv †¢ Preface ising from adversity. I have also brought back Ethical Mistakes, because I believe that organizations more than ever need to be responsive to society’s best interests. Altogether, this 11th edition brings seven new cases to replace seven that were deleted from the previous edition. Some of the cases are so current we continued updating until the manuscript left for the production process. We have tried to keep all cases as current as possible by using Postscrip ts, Later Developments, and Updates. A number of you have asked that I identify which cases would be appropriate for the traditional overage of topics as organized in typical marketing texts. With most cases it is not possible to truly compartmentalize the mistake or success to merely one topic. The patterns of success or failure tend to be more pervasive. Still, I think you will find the following classification of cases by subject matter to be helpful. I thank those of you who made this and other suggestions. Classification of Cases by Major Marketing Topics Topics Most Relevant Cases Marketing Research and Consumer Analysis Coca-Cola, Disney, McDonald’s, Google, Starbucks ProductStarbucks, Nike, Coke/Pepsi, McDonald’s, Maytag, Dell, Hewlett-Packard, Newell Rubbermaid, DaimlerChrysler, Kmart/Sears, Harley-Davidson, Boeing/Airbus, Merck, Boston Beer, Firestone/Ford, Southwest, MetLife, Borden, United Way, Vanguard, Continental, Euro Disney Distribution Nike, Coke/Peps i, Newell Rubbermaid, Harley-Davidson, Vanguard, Starbucks, Kmart/Sears, Hewlett-Packard, Dell Promotion Nike, Coke/Pepsi, Maytag, Vanguard, Merck, Boston Beer, Kmart/Sears, Harley-Davidson, Borden, MetLife, HewlettPackard, Southwest Air, Google, Starbucks PriceContinental, Southwest, Vanguard, Starbucks, Boston Beer, Dell, Euro Disney, Newell Rubbermaid, Boeing/Airbus, McDonald’s Non-product Google, United Way, Disney, Southwest, Continental International Euro Disney, Boeing/Airbus, Harley-Davidson, Maytag, DaimlerChrysler, Firestone/Ford, Dell, Hewlett-Packard, Nike, Coke/Pepsi, Starbucks, McDonald’s Customer Relations Newell Rubbermaid, Vanguard, Maytag, Harley, Merck, Firestone/Ford, Starbucks, United Way, Nike, MetLife Social and Ethical Starbucks, Merck, Firestone/Ford, United Way, MetLife Outsourcing Boeing/Airbus, Maytag, Nike, DellPreface †¢ v TARGETED COURSES As a supplemental text, this book can be used in a variety of undergraduate and graduate courses . These range from introduction to marketing/marketing principles to courses in marketing management and strategic marketing. It can also be used as a text in international marketing courses. Retailing, entrepreneurship, and ethics courses could use a number of these cases and their learning insights. It can certainly be used in training programs and even appeal to nonprofessionals who are looking for a good read about well-known firms and personalities. TEACHING AIDSAs in previous editions, you will find a plethora of teaching aids and discussion material within and at the end of each chapter. Some of these will be common to several cases, and illustrate that certain successful and unsuccessful practices are not unique. Information Boxes and Issue Boxes are included in each chapter to highlight relevant concepts and issues, or related information, and we are even testing Profile Boxes. Learning insights help students see how certain practices—both errors and successes cross company lines and are prone to be either traps for the unwary or success modes.Discussion Questions and Hands-On Exercises encourage and stimulate student involvement. A recent pedagogical feature is the Team Debate Exercise, in which formal issues and options can be debated for each case. New in some cases are Devil’s Advocate exercises in which students can argue against a proposed course of action to test its merits. A new pedagogical feature, based on a reviewer’s recommendation, appears at the end of the Analysis section: students are asked to make their own analysis, draw their own conclusions, and defend them, thereby having an opportunity to stretch themselves.In some cases where there is considerable updating, a new feature invites students to Assess the Latest Developments. Invitation to Research suggestions allow students to take the case a step further, to investigate what has happened since the case was written, both to the company and even to some of the individuals involved. In the final chapter, the various learning insights are summarized and classified into general conclusions. An Instructor’s Manual written by the author accompanies the text to provide suggestions and considerations for the pedagogical material within and at he ends of chapters. ACKNOWLEDGMENTS It seems fitting to acknowledge everyone who has provided encouragement, information, advice, and constructive criticism through the years since the first edition of these Mistakes books. I hope you all are well and successful, and I truly appreciate your contributions. I apologize if I have missed anybody, and vi †¢ Preface would be grateful to know such so we can rectify this in future editions. I welcome updates to present affiliations. Michael Pearson, Loyola University, New Orleans; Beverlee Anderson, University of Cincinnati; Y. H. Furuhashi, Notre Dame; W.Jack Duncan, University of AlabamaBirmingham; Mike Farley, Del Mar College; Joseph W. Leona rd, Miami University (OH); Abbas Nadim, University of New Haven; William O’Donnell, University of Phoenix; Howard Smith, University of New Mexico; James Wolter, University of Michigan, Flint; Vernon R. Stauble, California State Polytechnic University; Donna Giertz, Parkland College; Don Hantula, St. Joseph’s University; Milton Alexander, Auburn University; James F. Cashman, University of Alabama; Douglas Wozniak, Ferris State University; Greg Bach, Bismark State College; Glenna Dod, Wesleyan College; Anthony McGann, University of Wyoming; Robert D.Nale, Coastal Carolina University; Robert H. Votaw, Amber University; Don Fagan, Daniel Webster University; Andrew J. Deile, Mercer University; Samuel Hazen, Tarleton State University; Michael B. McCormick, Jacksonville State University; Neil K. Friedman, Queens College; Lawrence Aronhime, John Hopkins University; Joseph Marrocco, Boston University; Morgan Milner, Eastern Michigan University; Souha Ezzedeen, Pennsylvania Stat e University, Harrisburg; Regina Hughes, University of Texas; Karen Stewart, Stockton College; Francy Milner, University of Colorado; Greg M.Allenby, Ohio State University; Annette Fortia, Old Westbury; Bruce Ryan, Loyola; Jennifer Barr, Stockton College; Dale Van Cantfort, Piedmont University; Larry Goldstein, Iona University; Duane Prokop, Gannon University; Jeff Stoltman, Wayne State University; Nevena Koukova, Lehigh University; Matthew R. Hartley, University of California, Berkeley; Cindy Claycomb, Wichita State University; Pola Gupta, Wright State University; Joan Lindsey-Mullikin, Babson College. Also: Barnett Helzberg, Jr. f the Shirley and Barnett Helzberg Foundation, and my colleagues from Cleveland State University: Ram Rao, Sanford Jacobs, Andrew Gross and Benoy Joseph. From Wiley: Judith Joseph, Kimberly Mortimer, Carissa Marker. Robert F. Hartley, Professor Emeritus College of Business Administration Cleveland State University Cleveland, Ohio R. [email  protected] ED U ABOUT THE AUTHOR Bob Hartley is Professor Emeritus at Cleveland State University’s College of Business Administration. There he taught a variety of undergraduate and graduate courses in management, marketing, and ethics.Prior to that he taught at the University of Minnesota and George Washington University. His MBA and Ph. D. are from the University of Minnesota, with a BBA from Drake University. Before coming into academia, he spent thirteen years in retailing with the predecessor of Kmart (S. S. Kresge), JCPenney, and Dayton-Hudson and its Target subsidiary. He held positions in store management, central buying, and merchandise management. His first textbook, Marketing: Management and Social Change, was published in 1972. It was ahead of its time in introducing social and environmental issues to the study of marketing.Other books, Marketing Fundamentals, Retailing, Sales Management, and Marketing Research, followed. In 1976 the first Marketing Mistakes book was published and brought a new approach to case studies, making them student-friendly and more relevant to career enhancement than existing books. In 1983, Management Mistakes was published. These books are now in the eleventh and ninth editions, respectively, and have been widely translated. In 1992 Professor Hartley wrote Business Ethics: Violations of the Public Trust. Business Ethics Mistakes and Successes was published in 2005. He is listed in Who’s Who in America, and Who’s Who in the World. ii This page intentionally left blank CONTENTS Preface About the Author Chapter 1 Introduction PART I ENTREPRENEURIAL ADVENTURES Chapter 2 Chapter 3 Chapter 4 Google: An Entrepreneurial Juggernaut Starbucks: A Paragon of Growth and Employee Benefits Finds Storms Boston Beer: Is Greater Growth Possible? 29 46 PART II MARKETING WARS 61 Chapter 5 Chapter 6 Chapter 7 Cola Wars: Coca-Cola vs. Pepsi PC Wars: Hewlett-Packard vs. Dell Airliner Wars: Boeing vs. Airbus; and Recent Outsourcing Woes 63 86 PART III COMEBACKS Chapter 8 Chapter 9 Chapter 10 McDonald’s: Rebirth Through ModerationHarley-Davidson: Creating An Enduring Mystique Continental Airlines: Salvaging From the Ashes PART IV MARKETING MANAGEMENT MISTAKES Chapter 11 Chapter 12 Borden: Letting Brands Wither United Way: A Nonprofit Tries to Cope with Image Destruction DaimlerChrysler: A Merger Made in Hades Newell’s Acquisition of Rubbermaid Becomes an Albatross Euro Disney: Bungling a Successful Format Maytag: An Incredible Sales Promotion in England; and Outsourcing Kmart and Sears: A Hedge Fund Manager’s Challenge Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 iii vii 1 9 11 103 127 129 147 161 175 177 190 203 220 233 251 67 ix x †¢ Contents PART V NOTABLE MARKETING SUCCESSES 281 Chapter 18 Chapter 19 Chapter 20 Southwest Airlines: Success Is Finally Contested Nike: A Powerhouse Brand Vanguard: Is Advertising Really Needed? 283 302 319 PART VI ETHICAL MISTAKES Chapter 21 Chapte r 22 Chapter 23 Merck’s Vioxx: Catastrophe and Other Problems MetLife: Deceptive Sales Practices Ford Explorers with Firestone Tires: A Killer Scenario Ill Handled 335 351 Conclusions: What We Can Learn 380 Chapter 24 Index 333 365 400 CHAPTER ONE Introduction A t this writing, Marketing Mistakes has passed its thirtieth anniversary. Who would have thought?The first edition, back in 1976, was 147 pages and included such long-forgotten cases as Korvette, W. T. Grant, Edsel, Corfam, Gilbert, and the Midi. In this eleventh edition, seven cases from the tenth edition have been dropped, and seven added, several of these being modified from earlier editions. Other cases have been updated, and in some instances reclassified. Two exciting new entrepreneurial cases, Google and Starbucks, are introduced, and the entire Entrepreneurial Adventures moved to the front of the book as Part I. I think your students will find these cases particularly interesting and even inspiring.The popular â€Å"Marketing Wars† is again included, this time as Part II, and it follows major competitors in their furious struggles. Two new parts have been added from older editions: Part III Comebacks, and Part VI Ethical Mistakes. In response to your feedback, the section on notable successes has been continued. Some cases are as recent as today’s headlines; several still have not come to complete resolution. A few older cases have been continued or brought back. For example, Borden last appeared in the ninth edition, but some of you thought the learning insights were important enough to reintroduce the case.We continue to seek what can be learned—insights that are transferable to other firms, other times, other situations. What key factors brought monumental mistakes to some firms and resounding successes for others? Through such evaluations and studies of contrasts, we may learn to improve batting averages in the intriguing, ever-challenging art of decision making. We will encounter organizational life cycles, with an organization growing and prospering, then failing (just as humans do), but occasionally resurging. Success rarely lasts forever, but even the most serious mistakes can be (but are not always) overcome.As in previous editions, a variety of firms, industries, mistakes, and successes are presented. You will be familiar with most of the organizations, although probably not with the details of their situations. We are always on the lookout for cases that can bring out certain points or caveats in the art of marketing decision making, and that give a balanced view of the spectrum of marketing problems. The goal is to present examples that provide 1 2 †¢ Chapter 1: Introduction somewhat different learning experiences, where at least some aspect of the mistake or success is unique. Still, we see similar mistakes occurring time and again.From the prevalence of such mistakes, we have to wonder how much decision making has really progr essed over the decades. The challenge is still there to improve it, and with it marketing efficiency and career advancement. Let us then consider what learning insights we can gain, with the benefit of hindsight, from examining these examples of successful and unsuccessful marketing practices. LEARNING INSIGHTS Analyzing Mistakes In looking at sick companies, or even healthy ones that have experienced difficulties with certain parts of their operations, it is tempting to be overly critical. It is easy to criticize with the benefit of hindsight.Mistakes are inevitable, given the present state of decision making and the dynamic environment facing organizations. Mistakes can be categorized as errors of omission and of commission. Mistakes of omission are those in which no action was taken and the status quo was contentedly embraced amid a changing environment. Such errors, often characteristic of conservative or stodgy management, are not as obvious as the other category of mistakes. T hey seldom involve tumultuous upheaval; rather, the company’s competitive position slowly erodes, until management finally realizes that mistakes having monumental impact have been allowed to happen.The firm’s fortunes often never regain their former luster. Mistakes of commission are more spectacular. They involve hasty decisions often based on faulty research, poor planning, misdirected execution, and the like. Although the costs of eroding competitive position due to errors of omission are difficult to calculate precisely, the costs of errors of commission are often fully evident. For example, with Euro Disney, in 1993 alone the loss was $960 million from a poorly planned venture; it improved in 1994 with only a $366 million loss.With Maytag’s overseas Hoover Division, the costs of an incredibly bungled sales promotion were more than $300 million, and still counting. Then there was the monumental acquisition of Chrysler by Germany’s Daimler, maker of p roud Mercedes, for $36 billion in 1998. After nine tumultuous years, Daimler gave up and sold Chrysler to a private equity firm in 2007 for only $7. 4 billion. Although they may make mistakes, organizations with sharp managements follow certain patterns when confronting difficult situations: 1. Looming problems or present mistakes are quickly recognized. 2.The causes of the problem(s) are carefully determined. 3. Alternative corrective actions are evaluated in view of the company’s resources and constraints. 4. Corrective action is prompt. Sometimes this requires a ruthless axing of the product, the division, or whatever is at fault. Learning Insights †¢ 3 5. Mistakes provide learning experiences. The same mistakes are not repeated, and future operations are consequently strengthened. Slowness to recognize emerging problems leads us to think that management is incompetent or that controls have not been established to provide prompt feedback at strategic control points.Fo r example, a declining competitive position in one or a few geographical areas should be a red flag that something is amiss. To wait months before investigating or taking action may mean a permanent loss of business. Admittedly, signals sometimes get mixed, and complete information may be lacking, but procrastination is not easily defended. Just as problems should be quickly recognized, the causes of these problems— the â€Å"why† of the unexpected results—must be determined as quickly as possible. It is premature, and rash, to take action before knowing where the problems really lie.Returning to the previous example, the loss of competitive position in one or a few markets may reflect circumstances beyond the firm’s immediate control, such as an aggressive new competitor who is drastically cutting prices to â€Å"buy sales. † In this situation, all competing firms will likely lose market share, and little can be done except to stay as competitive as possible with prices and servicing. However, closer investigation may reveal that the erosion of business was due to unreliable deliveries, poor quality control, noncompetitive prices, or incompetent sales staff.With the cause(s) of the problem defined, various alternatives for dealing with it should be identified and evaluated. This may require further research, such as obtaining feedback from customers and from field personnel. Finally, the decision to correct the situation should be made as objectively as possible. If drastic action is needed, there usually is little rationale for delaying. Serious problems do not go away by themselves: They tend to fester and become worse. Finally, some learning experience should result from the misadventure. A vice president of one successful firm told me,I try to give my subordinates as much decision-making experience as possible. Perhaps I err on the side of delegating too much. In any case, I expect some mistakes to be made, some decision s that were not for the best. I don’t come down too hard usually. This is part of the learning experience. But God help them if they make the same mistake again. There has been no learning experience, and I question their competence for higher executive positions. Analyzing Successes Successes deserve as much analysis as mistakes, although admittedly the urgency is less than with an emerging problem that requires quick remedial action.Any analysis of success should seek answers to at least the following questions: Why Were Such Actions Successful? †¢ Was it because of the nature of the environment, and if so, how? †¢ Was it because of particular research, and if so, what and how? 4 †¢ Chapter 1: Introduction †¢ Was it because of particular engineering and/or production efforts, and if so, can these be adapted to other operations? †¢ Was it because of any particular element of the strategy—such as service, promotional activities, or distribution methods—and if so, how, and is it transferable to other operations? Was it because of the specific elements of the strategy meshing well together, and if so, how was this achieved? Was the Situation Unique and Unlikely to Be Encountered Again? †¢ If the situation was not unique, how can these successful techniques be used in the future and defended against competition? ORGANIZATION OF THIS BOOK In this eleventh edition we have modified the classification of cases somewhat from earlier editions. As mentioned before, Part I, Entrepreneurial Adventures, describes and analyzes well-known recent endeavors.In Part II, Marketing Wars, we examine the actions and countermoves of archrivals in hotly competitive arenas. Part III, Comebacks, studies three firms that faced adversity, and came back better than ever. In Part IV, Marketing Management Mistakes, we delve into seven firms guilty of a variety of mistakes that offer great learning insights. Part V, Notable Marketing Success es, offers paragons of successful marketing strategies and operations. Finally, in Part VI, Ethical Mistakes, we examine three firms whose mistakes had major ethical and legal consequences.Let us briefly describe the cases that follow. Entrepreneurial Adventures Google is arguably the most outstanding successful new enterprise ever. It was founded by Sergey Brin and Larry Page who dropped out of Stanford’s Ph. D program to do so. With its search engine, it raised advertising to a new level: targeted advertising. In so doing, it spawned a host of millionaires from its rising stock prices and stock options and made its two founders some of the richest Americans, just under Bill Gates and Warren Buffett. How did they do it?Starbucks is also a rapidly growing new firm—not as much as Google, but still great—and a credit to founder Howard Schultz’s vision of transforming a prosaic product, coffee, into a gourmet coffee house experience at luxury prices. Boston Beer burst on the microbrewery scene with Samuel Adams beers, higher priced even than most imports. Notwithstanding this—or maybe because of it—Boston Beer became the largest microbrewer. It proved that a small entrepreneur can compete successfully against the giants in the industry, and do this on a national scale. Marketing WarsPepsi and Coca-Cola for decades competed worldwide. Usually Coca-Cola won out, but it could never let its guard down; however, it recently did so in Europe. Now a Organization of this Book †¢ 5 trend toward noncarbonated beverages along with Pepsi’s non-drink diversifications is swinging the momentum to Pepsi. But Coca-Cola is trying hard to recover. Dell long dominated the PC market with lowest-prices, direct-to-consumer marketing. Hewlett-Packard, the world’s second biggest computer maker, chose Carly Fiorina, a charismatic visionary, to be its CEO, and she engineered a merger with Compaq.But growth in profitability did no t follow, and early in 2005, the board fired Fiorina. Mark Hurd, an operational person, replaced her, and brought the company to PC dominance. But Michael Dell is fighting back. Boeing long dominated the worldwide commercial aircraft market, with the European Airbus only a minor player. A series of Boeing blunders, however, coupled with an aggressive Airbus, brought market shares close to parity. Both firms are now introducing strikingly new planes, but are finding problems with their outsourcing key components to foreign suppliers.Comebacks McDonald’s had long dominated the fast food restaurant market. Then it began to falter, and hungry competitors made inroads into its competitive position. As it fought to regain its momentum, it explored diversifications and ever more store openings, while profitability plummeted. Recently, it found a new formula for profitable growth. In the early 1960s, Harley-Davidson dominated a static motorcycle industry. Suddenly, Honda burst on the scene and Harley’s market share dropped from 70 percent to 5 percent in only a few years.It took Harley nearly three decades to revive, but now it has created a mystique for its heavy motorcycles and gained new customers. And its Rallies are something else again. The comeback of Continental Airlines from extreme adversity and devastated employee morale to become one of the best airlines in the country is an achievement of no small moment. New CEO Gordon Bethune brought marketing and human relations skills to one of the most rapid turnarounds ever, overcoming a decade of raucous adversarial labor relations and a reputation in the pits.Marketing Management Mistakes Borden, with its enduring symbol of Elsie the Cow, was the country’s largest producer of dairy products. On an acquisitions binge in the 1980s, it became a diversified food processor and marketer—and a $7 billion company. But Borden allowed consumer acceptance of its many brands to wither through unrea listic pricing, ineffective advertising, and an unwieldy organization. United Way of America is a nonprofit organization. The man who led it to become the nation’s largest charity perceived himself as virtually beyond authority.Exorbitant spending, favoritism, conflicts of interest—these went without criticism until investigative reporters from the Washington Post publicized the scandalous conduct. With its public image plummeting, contributions nationwide drastically declined. The real concern was whether United Way could ever regain its former luster. 6 †¢ Chapter 1: Introduction The merger of Chrysler with Daimler, the huge German firm that makes Mercedes, was supposed to be a merger of equals. But Chrysler’s management quickly found otherwise, and the top Chrysler executives were soon replaced by executives from Germany.Assimilation and coordination problems plagued the merger for years. Nine years later, Daimler sold Chrysler to a private equity firm f or tens of billions of dollars less than it paid. Newell, a consumer-products firm, successfully geared its operations to meet the demands of giant retailers, particularly Wal-Mart, whereas Rubbermaid had in recent years been unable to meet those stringent requirements. In 1999, Newell acquired Rubbermaid, confident of turning its operation around, only to find that Rubbermaid’s problems were not easily corrected and that they negatively impacted Newell’s fortunes as well.What do you do now? In April 1992, just outside Paris, Disney opened its first theme part in Europe. It had high expectations and supreme self-confidence (critics later called it arrogance). The earlier Disney parks in California, Florida, and more recently Japan were all spectacular successes. But rosy expectations became a delusion as marketing miscues finally showed Disney that Europeans, and particularly the French, were not carbon copies of visitors elsewhere. The problems of Maytag’s Hoov er subsidiary in the United Kingdom almost defy reason.The subsidiary planned a promotional campaign so generous that the company was overwhelmed with takers; it could neither supply the products nor grant the prizes. In a miscue of multimillion-dollar consequences, Maytag had to foot the bill while trying to appease irate customers. What can we learn from Maytag’s travails? Two faltering retail chains, Kmart and Sears, merged under the auspices of a hedge fund manager, Edward Lampert. Whether two weaklings could become one strong operation to compete with the likes of Wal-Mart and Target was uncertain, though investors bid both stocks up to extravagant levels in anticipation.The rosy expectations collapsed as we moved into a recession in 2007 and 2008. Notable Marketing Successes Southwest Airlines found a strategic window of opportunity as the lowest cost and lowest price carrier between certain cities. And how it milked this opportunity! Now it threatened major airlines in many of their domestic routes. However, by 2008, competitors were beginning to counter Southwest’s price advantage. Nike and Reebok were major competitors in the athletic footwear and apparel market. Nike was overtaken by Reebok in the late 1980s, but then Nike surged far ahead, never to be threatened again.What is the secret of Nike’s increasing dominance? Vanguard has become the largest mutual fund company, charging past Fidelity. Vanguard’s strategy is to downplay marketing, shunning the heavy advertising and overhead of its competitors. It provides investors with better returns through far lower expense ratios and relies mostly on word of mouth and unpaid publicity to General Wrap-Up †¢ 7 gain new customers, while old customers continue to pour in money. Is Vanguard vulnerable to aggressive new competitors? Ethical MistakesMerck, the pharmaceutical giant, learned that its blockbuster arthritis drug, Vioxx, doubled the risk of a heart attack or stroke. Over five years and $500 million in advertising, it had 20 million users in the United States at the time it recalled the drug September 30, 2004. Critics and tort lawyers assailed the company for waiting so long to recall this drug, since some research studies as early as five years before had raised questions about the safety of Vioxx. What can we learn from Merck’s handling of its great profit-making drug now discredited?The huge insurance firm MetLife, whether through loose controls or tacit approval, permitted an agent to use deceptive selling tactics on a grand scale, in the process enriching himself and the company. Investigations by several state attorneys general brought a crisis situation to the firm that it was slow to react to. Eventually, fines and lawsuits totaled almost $2 billion. Product safety lapses that result in injuries and even loss of life are among the worst abuses any company can confront. Worse, however, is when such risks are allowed to continue fo r years.Ford Explorers equipped with Firestone tires were involved in more than 200 deaths from tire failures and vehicle rollovers. After news of the accidents began surfacing, Ford and Firestone each blamed the other for the deaths. Eventually, inept crisis management brought a host of lawsuits resulting in massive recalls and billions in damages. GENERAL WRAP-UP Where possible, the text depicts major personalities involved in these cases. Imagine yourself in their positions, confronting the problems and facing choices at their points of crisis or just-recognized opportunities.What would you have done differently, and why? We invite you to participate in the discussion questions, the handson exercises, the debates appearing at the ends of chapters, and the occasional devil’s advocate invitation (a devil’s advocate is one who argues an opposing viewpoint for the sake of testing the decision). There are also discussion questions for the various boxes within chapters. W hile doing these activities, you may feel the excitement and challenge of decision making under conditions of uncertainty. Perhaps you may even become a fast-track executive and make better decisions.QUESTIONS 1. Do you agree that it is impossible for a firm to avoid mistakes? Why or why not? 2. How can a firm speed up its awareness of emerging problems so that it can take corrective action? Be as specific as you can. 8 †¢ Chapter 1: Introduction 3. Large firms tend to err on the side of conservatism and are slower to take corrective action than smaller ones. Why do you suppose this is? 4. Which is likely to be more costly to a firm, errors of omission or errors of commission? Why? 5. So often we see the successful firm eventually losing its pattern of success.Why is success not more enduring? PART ONE E N T REPREN E U R I A L A D V EN T UR E S This page intentionally left blank CHAPTER TWO Google—An Entrepreneurial Juggernaut I n 1998 Sergey Brin and Larry Page dropped out of the Ph. D program at Stanford to start Google in a friend’s garage. Along the way, they discovered a powerful marketing tool that would revolutionize advertising. Six years later, on August 19, 2004, they took this Internet search and advertising firm public at a price of $85 a share. One year after the initial public offering (IPO), Google stock closed at $280.By 2007, the stock had gone over $700, and lots of people had become very rich. But this was to cause some serious concerns for the firm. Brain Drain Craig Silverstein, a fellow Stanford Ph. D student, was the first hire of Page and Brin. He helped them move their equipment out of Page’s dorm room and into a place with more space and, more importantly, a garage. In early 1999, five months later, the enterprise had grown enough to move into offices on University Avenue in downtown Palo Alto. The firm’s fortunes continued to improve, and Craig became director of technology in charge of product develo pment.Before many years, Craig realized he had become very rich indeed. From the beginning, Google gave its employees stock options in lieu of competitive salaries that in those days it could ill afford. These options gave employees the right to purchase a given number of shares of stock at a certain price, called a vested price, some years in the future. Even before going public in 2004, it had granted two big batches of such options. A 2002 grant that was priced at 30 cents a share vested in 2006. Another, priced at $4 a share in 2003, also vested in 2006.In May 2008, another round of options would be exercisable at $35, far more costly than the 30 cent option, but the way the stock was going up since the IPO, this higher price was of little consequence. By 2007, Craig was worth well over $100 million in Google stock and was becoming richer with every passing day. He knew that some 700 of his associates were worth at least $5 million, and he knew that many of them were talking abo ut quitting, with some wanting to start their own businesses. He knew that Bismarck Lepe, for example, who began working 11 12 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut or Google in 2003, had left the firm immediately after his four-year options vested in 2007. He now had a few million dollars that would help him start his own firm—2 million in only four years, wow! Craig couldn’t help pondering whether he should do the same. After all, how many hundreds of millions does one man need? But he did not really see himself as an entrepreneur. At his young age, about the same age as Sergey and Larry, he was not ready to retire to some South Sea island and count coconuts. So he stayed, caught up in the challenge of solving tough problems with other smart Googlers. Making the brain drain all the more tempting for many of these employees was Google’s hiring of the brightest young people, the very ones most likely to become entrepreneurs, if given the chance. Their ambitions fed on the great example of Google, as well as a plethora of smaller enterprises in this hotbed of innovation that was Silicone Valley with its great research universities such as Stanford. SERGEY BRIN AND LARRY PAGE AND THE START OF GOOGLE In 1998 when the venture that was to be Google was only an idea, Sergey and Larry were both 25 years old and were doctoral students at Stanford.Sergey was a math whiz, having completed his undergraduate degree at 19, and aced all ten of the required doctoral exams on his first try, and teamed easily with professors doing research. His parents’ backgrounds were rich in science and technology. His mother was a scientist at NASA’s Goddard Space Flight Center. His father, Michael, taught math at the University of Maryland. Sergey was born in Moscow, but he and his family left the Soviet Union when he was six, fleeing anti-Semitism and seeking greater opportunity for themselves and their children.Larry Page grew up in Michigan, also the son of a professor whose Ph. D was computer science, and who taught at Michigan State University where Larry’s mother also taught computer programming. He followed in the footsteps of his father and brother by going to the University of Michigan where he studied computer engineering, receiving his undergraduate degree in 1995. At first he had felt uneasy about being one of the select few to be admitted to Stanford’s elite Ph. D program. In those early days, these sons of esteemed professors were focused on pursuing their Ph. Ds, not on getting rich. In their families, nothing trumped the value of a great education. Neither of them had the slightest idea just how soon their heartfelt commitment to academia would be tested. †2 The Beginning In the mid-1990s, the Internet was just emerging. Millions of people were logging on and communicating through email. But researchers grew frustrated with the clutter of Web sites. Searching it for relev ant information often resulted in an abundance of completely meaningless data. Search engines began to organize the Internet, and thus Yahoo and AltaVista among others were born. But they still left a lot to be 1 2Examples can be found in Quentin Hardy, â€Å"Close to the Vest,† Forbes, July 2, 2007, pp. 40–42. David A. Vise, The Google Story, New York: Delacorte, 2005, p. 31. Sergey Brin and Larry Page and the Start of Google †¢ 13 desired. The answer to more relevant research seemed to be a better use of links, such as a highlighted word or phrase. In 1996, Page and Brin teamed up to work on downloading and analyzing Web links. In the process they developed a ranking system for searching the Internet that yielded prioritized results based on relevance to the object of the search, and useful answers could be found swiftly.In 1997, they made the search engine available to students, faculty, and administrators on the Stanford campus, and popularity grew by word of mouth. As the database and number of users burgeoned, more computers were needed. In these early days, Brin and Page were able to scrounge around for unused computers and string together inexpensive PCs. By July 1998, they had an index of 24 million pages, with more coming. But their growth was stymied by lack of capital. They decided to take a leave of absence from the Ph. D program and start their own firm.This way they could develop a business of their own that would fit their search engine. If it was as good as they thought, and with Internet use growing so rapidly, growth could be virtually unlimited. Rather than selling out to some existing firm, wouldn’t they be better off keeping control? Still, by August they had run out of cash and badly needed an â€Å"angel. † One of their professors suggested they meet his friend, Andy Bechtolsheim, a legendary investor in a string of successful start-ups. After listening to their presentation, he said, â€Å"This is the single best idea I’ve heard in years.I want to be part of this,† and he left them a check for $100,000 made out to Google Inc. 3 It took them two weeks before they could formally incorporate the company, Google Inc. , and then open their first bank account. The check sustained the two entrepreneurs at first, and in fall 1998 they moved their computers from a dorm room into a garage and several rooms of a house. They also hired a friend, Craig Silverstein (mentioned earlier), as their first employee. After five months they outgrew the garage and moved into offices in downtown Palo Alto, barely a mile from the Stanford campus.By now, their search engine was handling 100,000 queries a day, all this through word of mouth, emails, and instant messages. But they were again running out of money, despite the now $1 million in funding that they had collected from Bechtolsheim and other early investors, and through borrowing on their credit cards. But it was clear that with upwar d of 500,000 searches per day toward the end of the year, they needed much more money. In the boomtown climate of Silicon Valley in early 1999, a public stock offering was one option, even though Google had no profits.But Brin and Page resisted this option, not wanting to reveal their trade secrets and lose some control. Efforts to license their search technology to other firms wishing to use it for research, found few takers. Eventually they went the venture capital route. But Brin and Page insisted on keeping control of Google’s destiny and remain majority owners, or it was no deal. On June 7, 1999, less than one year after they left Stanford, they issued a press release announcing that two venture capital firms, Kleiner Perkins and Sequoia Capital, were investing $25 million in Google.On the Stanford campus and around Palo Alto, amazement reigned at the enormity of the sum seemingly without the two giving anything up in return. â€Å"The announcement included details of t he funding as well as additional information about Google, its impressive list of investors, and its growth 3 Vise, p. 48. 14 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut rate of 50 percent per month. All this put the company in the global limelight, giving it the opportunity to grow further through free media publicity. †4 But Google still had not earned any appreciable revenue to upport its heady growth, and no plan for this was revealed in the press release. THE EARLY GROWTH YEARS By the end of 1999, Google was averaging 7 million searches per day, but its revenue from licensing remained small. If the business could not be reasonably profitable, they could hardly maintain their vision of vast information available to users without charge. With licensing its search technology to businesses proving to be such a limited revenue source, they finally were forced to consider allowing advertisers access to their multitude of users.Brin and Page could see a relati onship between their search engine and the television networks: those offered entertainment and news for free, while charging millions for the advertising. But the two shuddered at the flashy banner ads that littered the Internet. Still, they belatedly recognized that advertising was where vast sums were being spent, not in licensing, Creating a Different Advertising Model They wanted to avoid the clutter of almost out-of-control, irrelevant ads, and they developed strict standards for size and type of ads.They separated the free search results from the ads, which they would label â€Å"Sponsored Links. † These â€Å"Links,† because of their relevance to the search, would be clicked on more often than if they were labeled simply â€Å"Ads. † They decided to display the links in a clearly marked box above the free search results. The ads would be brief and look identical, with just a headline, a short description, and a link to a web page. But these would be targ eted ads, offering a major advantage for advertisers confronted with the huge wastage of advertising reaching uninterested audiences.At first Google sold this advertising to large businesses that could afford expensive ad campaigns, but it soon found substantial market potential in letting smaller advertisers easily sign up online with a credit card, and their ads could then be running within minutes. This gave Google an edge over similar providers unable to offer such fast service, and also minimized its own costs of selling advertising. Shortly after turning to its advertising model, Brin and Page had another innovative idea—they would rank ads based on relevance.And relevance would be determined by how often ads were clicked on by computer users. This would provide valuable feedback to advertisers and influence the selling and pricing of ads. CHARGING AHEAD When the Internet stock price bubble burst in 2000, it ravaged the former highflying entrepreneurial firms of Silicon e Valley with major layoffs and bankruptcies. But Google stood poised at the nadir of its great growth to come and was one of 4 Vise, p. 69. Charging Ahead †¢ 15 the few firms able to hire outstanding software engineers and mathematicians, many holding worthless stock options.This pool of talent stimulated Google’s growth as it moved to a large headquarters in Mountain View, named the Googleplex, forty minutes south of San Francisco. There Brin and Page developed a work environment practically unprecedented. See the following Information Box for some examples of this culture that was designed to cultivate strong loyalty and job satisfaction and to foster a creative, playful environment where Google’s employees, mostly young and single, would be willing to spend their waking hours. By early 2001, Google was recording 100 million searches per day.It was also entering the dictionary as a verb, as for example, to â€Å"google each other before dates. † Now larg e firms, such as Wal-Mart, the world’s biggest retailer, and Acura, a major automobile manufacturer, joined the entourage of firms advertising their wares on Google. What was the secret behind the rapid growth of Google’s advertising program? As we saw before, Google came up with an unique approach to advertising, an INFORMATION BOX WORK CLIMATE AT GOOGLE Employees worked long hours but were treated like family. There was even a gourmet chef, with free meals, healthy drinks and snacks.The chef took pride in providing better meals than found in area restaurants. Given the international mix of employees, the menu was varied to cater to all tastes: Southwestern, classic Italian, French, African, Asian, Indian, etc. The Wall Street Journal sent a reporter out to investigate. â€Å"Where else but the Plex can you zip around on a bicycle and choose from multicultural comfort food, American regional food, small plates, entrees made with five ingredients or less, and dishes b ased on raw materials supplied from within 150 miles of Mountain View?Many employees eat three meals a day at the Plex’s 17 food venues, open any time day or night. . . . We were told that Messrs. Brin and Page chow down with the troops. † (Raymond Sokolov, â€Å"Googling Lunch,† Wall Street Journal, December 1–2, 2007, pp. W1 and W5. ) Also furnished were such conveniences as on-site laundry, hair styling, dental and medical care, a car wash, day care, fitness facilities with personal trainers, and a professional masseuse. Brightly colored medicine balls, lava lamps, assorted gadgets and sports equipment gave the appearance of a college campus.Chartered buses had internet access so that commuters to San Francisco could use their laptops. Social events and entertainment were Friday afternoon and evening features. As a spur for creativity, a policy was set that software engineers spend at least 20 percent of their time, or one day a week, working on whateve r projects interested them. Do you see any downside to these workplace amenities? Would these influence your choosing to work for Google despite less money? Would some of these be appropriate to other firms? If so, what kind of firms? 16 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut pproach that most advertisers previously could only dream of: i. e. , Targeted Text Ads. The unobtrusive ads are seen only by potential customers who are searching for information on that specific topic. In one swell swoop this advertising virtually eliminates the great waste of most mass media advertising that is viewed by a vast audience who have no interest whatever in the product being advertised despite millions and hundreds of millions of dollars being spent. For an example of the waste of such untargeted ads, consider an airline spending $1 million or more on a TV ad campaign that gains only 100 new first-class customers as a result. Furthermore, in Google-placed ads no intrusive banners compete for attention. The text ads (links) and websites are read carefully by users or potential users, and these often find the ads as valuable as the actual search results. A New CEO In early January 2001, at the urging of its venture capitalists, Larry and Sergey reluctantly consented to hire a chief executive officer to run operations. Eric Schmidt was highly recommended by one of the venture capitalists. He not only had entrepreneurial experience as founder of Sun Microsystems, and CEO of Novell, but also academic credentials—a Ph.D in computer science from the University of California at Berkeley, and a degree in electrical engineering from Princeton. Then there was research experience at Xerox Palo Alto Research Center and Bell Labs. At 46, he was a seasoned tech executive and brought a needed mature balance to this organization of young people. Besides, he was willing to invest $1 million of his own money to buy preferred stock in Google, this at a time when the company was running short of cash again. (It would soon never again run short of cash. ) Google entered into pacts with Yahoo, AOL, EarthLink, and Ask Jeeves.This gave it relationships with most of the biggest Internet properties. By the end of 2002, Google and its venture capitalists could see that the search engine was going to be a huge financial success. For the year, it had recorded $440 million in sales and an amazing $100 million in profits. Virtually all of these profits came from people clicking on the text ads that were on the right side of search results pages at Google. com and the pages of its partners and affiliates. But the world did not realize the extent of this profitability since Google was still a private company.This silence about the profitability of the online search and advertising business model undoubtedly kept other firms, especially Microsoft and Yahoo, from investing in or developing search engines of their own—until Google had an almost insur mountable head start. The advertising industry was being transformed as well, as billions of dollars of advertising was being shifted from television, radio, newspapers, and magazines to the Internet. But the time was nearing for Google to go public, and with this full disclosure would shock the investment community and make Google stock the darling of investors and employees alike. Example cited in Seth Godin, â€Å"Your Product, Your Customer,† Forbes, May 7, 2007, p. 52. Going Public †¢ 17 GOING PUBLIC Finally in early 2004, Larry and Sergey reluctantly started the process of taking Google public. In truth, their decision was practically dictated by federal rules that required public disclosure of financial results by companies with a substantial amount of assets and shareholders, and Google had exceeded these limits with many of the company employees having been given stock in the then-private firm. This move would enable them to convert their holdings to cash.The ve nture capitalists who had supplied the early crucial funds would also benefit from the liquidity that going public would provide. For most entrepreneurs, taking their new firm public was the ultimate goal since the IPO (initial public offering) would often make them instant millionaires. But for Brin and Page, the reality of being billionaires was not all that appealing. They both lived relatively modestly, loved the privacy, and cared little for the accumulation of wealth and the accoutrements of wealth—such as grand homes, planes, and yachts to attest to their success.The company was debt free, self-funded, had plenty of cash, and had no need to sell stock to the public to raise money. They were not sure they wanted the immense publicity and what it would entail and affect the freedoms they had enjoyed, and that of their families. For example, would they need bodyguards? How about the paparazzi? And their employees who would become instant millionaires, how would this affec t their intensity and focus? And would they even stay with Google, or go out on their own? (We know that many left to start their own enterprises. In early 2004, the employees were quietly told that the company was going to file a public offering. And thousands of Google employees, spouses, and interested others began an eight-month guessing game of how much the company and themselves would be worth. The eight months proved to be a stressful time for almost all concerned, but probably most of all for Brin and Page. Their reluctance to disclose much before the public auction did not endear them to the media. Then an ill-advised Playboy interview did not go well and even triggered a SEC investigation.To make matters worse, the stock market was tanking as world oil prices spiked, and many analysts were warning of a global recession. Also, the Athens Olympics were starting amid great fears of terrorism. Google and its bankers realized that the initial price range of $108–$135 wou ld probably not be acceptable to the market at this time, and on August 19, Google finally went public at $85 a share. By the end of the first day, the stock had reached nearly $100. By the next day it was $108. It reached $200 in November and kept climbing from there.Forbes, in its listing of the 400 Richest Americans cited Brin and Page’s wealth at $4 billion each at the end of 2004, due to the success of the IPO. Then in 2006, â€Å"The Google Guys crack the top 10 of the Forbes 400, each now worth $18. 5 billion. † This placed them as the fifth richest Americans, in the company of Bill Gates and Warren Buffett, ahead of Michael Dell of Dell Computer, and way ahead of Donald Trump. And they were both only 34. 6 6 Forbes, Forbes 400 The Richest People in America, October 8, 2007, p. 78. 18 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut AFTER THE IPOAfter the IPO, the pace of innovation at Google got into high gear. New products and innovations were be ing spawned and made available to millions of customers around the world. Google became the darling of the media; no other firm or individual got the press coverage of Google. The fact that it was now a public company with its financial performance readily available—and as such now well covered by financial analysts who did not cover private firms—made its promising results and potential very visible. It expanded the lead in its core search and advertising business in the United States and much of the world.And with its new cash horde, it eagerly branched out into new areas, even such far out visions as a Green renewable-energy program to find ways to generate electricity more cheaply than by burning coal. 7 Not surprising, the growth of Google was being compared with that of Microsoft two decades earlier. Google was also becoming a major competitor of Microsoft, not in PCs, but in a later phase of technology that was surpassing the earlier technology, this time by the power of the Internet revolution. But perhaps the real competition was in recruiting and retaining the brightest technology minds in the world.But more about this later. For now, let us compare this early growth of Google with Microsoft in the Information Box beginning on page 19. Google’s Poaching of Talent As the business burgeoned in the spring and summer of 2005, Google added more than 700 employees in just three months. The total headcount now was 4,183, nearly double the total the previous year. Google was hiring Ph. Ds from the top universities across the country, and even trespassing on Microsoft’s own neighborhood, at the University of Washington.It opened a facility in a Seattle suburb just down the road from Microsoft’s Redmond plant, and now it was easy for their engineers and scientists to move over to Google. They didn’t even have to move to a new city or change their commute. In these days, Microsoft was viewed as a mature business. It no longer had the sex appeal that Google had grasped. Microsoft was struggling to keep its best people, even offering more money and perks. But the amazing growth and potential of Google brought the lure of great riches as stock options became valuable.As mentioned before, not the least of the perks that Google offered were the free restaurants and other amenities at its Googleplex headquarters in the Silicone Valley 40 minutes south of San Francisco. The increasing poaching of talent climaxed with Dr. Kai-Fu Lee, a highly regarded scientist, who wanted to leave Microsoft to become president of Google China. Microsoft began an all-out legal assault alleging that Google improperly sought to induce Lee to violate the terms of his employment contract with Microsoft. A temporary triumph over Google raised the specter of litigation for any senior Microsoft employee who left for Google.The wide publicity served to illustrate how seriously Microsoft regarded the threat posed by its smaller ri val. 8 7 Rebecca Smith and Kevin J. Delaney, â€Å"Google’s Electricity Initiative,† Wall Street Journal, November 28, 2007, p. A16. 8 Vise, p. 274. Analysis †¢ 19 ANALYSIS Here we have seen perhaps the greatest growth ever of a new enterprise. In the exuberance of this growth, investors bid up its stock market price to make the company more valuable than such long-established firms as Coca-Cola, Hewlett-Packard, Time Warner, AT&T, Boeing, Disney, McDonald’s, and General Motors and Ford.INFORMATION BOX COMPARISON OF MICROSOFT AND GOOGLE Table 2. 1 Comparison of Microsoft and Google Growth in Revenues from Their Beginnings Microsoft Beginning Went Public Years from Beginning 1975 1986 11 years Revenues (millions) 1986 1987 1988 1989 1990 1991 1992 Google Y/Y Growth $ 1996 2004 8 years 40. 7% 75. 1 70. 1 36. 0 47. 3 55. 8 49. 7 197 346 591 831 1,183 1,843 2,759 1996 28,365 32,187 36,835 39,735 44,282 Y/Y Growth $ 409% 233. 9 117. 5 92. 5 72. 8 9. 400 2002 200 3 2004 2005 2006 Revenues (millions) 13. 5 14. 4 7. 9 11. 4 439 1,466 3,189 6,138 10,605Source: Calculated from company annual reports. Commentary: The much faster start of Google is mind-boggling. The experts thought Microsoft was the model of the most successful entrepreneurial start ever. Bill Gates did not rush to take his venture public, waiting 11 years to do so, at which time revenues were almost $200 million. Google on the other hand delayed only six years before going public, but its revenues were already over $3 billion. As we can see, the year-to-year growth rate also strongly favored Google, with around a hundred percent growth since 2004. The two years before going public showed growth over 400 percent and 200 percent each year. ) The comparison between a young growth company and a mature Microsoft is clearly evident. (continues) 20 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut COMPARISON OF MICROSOFT AND GOOGLE (continued) Table 2. 2 Comparison of Micr osoft and Google Net Income from Their B

Cooperative learning Change of Leadership for Differentiated Education

Concerted larning refers to work done by pupil squads bring forthing a merchandise of some kind ( such as a set of job solutions, a research lab or undertaking study, or the design of a merchandise or a procedure ) , under conditions that satisfy five standards: ( 1 ) positive mutuality, ( 2 ) single answerability, ( 3 ) face to confront interaction for at least portion of the work, ( 4 ) appropriate usage of interpersonal accomplishments, and ( 5 ) regular self-assessment of squad operation. Extensive research has shown that comparative to traditional single and competitory manners of direction, decently implemented concerted larning leads to greater acquisition and superior development of communicating and teamwork accomplishments ( e.g. leading, undertaking direction, and struggle declaration accomplishments ) . Gregory ( 2008 ) The technique has been used with considerable success in all scientific subjects, including chemical science. The benefits of concerted acquisition are non automatic, nevertheless, and if amiss implemented, the method can make considerable troubles for teachers, most notably dysfunctional squads and pupil opposition or ill will to group work. This paper offers a figure of suggestions for organizing squads, fulfilling the five specifying standards of concerted acquisition, and minimising the jobs. Harmonizing to Gregory ( 2008 ) Teachers who have ne'er used the attack are advised to travel into it bit by bit instead than trying a all-out execution on their first attempt, and to increase the degree of execution in subsequent class offerings. To an increasing extent, they should see the larning benefits promised by the research, and as their expertness and assurance in implementing the method continue to turn, pupil ratings of the squad experience should better at the same time. Most si gnificantly, instructors who are successful in utilizing concerted acquisition in their categories will hold the satisfaction of cognizing that they have significantly helped fix their pupils for their professional callings. There are several grounds why concerted acquisition plants every bit good as it does. The thought that pupils learn more by making something active than by merely watching and listening has long been known to both cognitive psychologists and effectual instructors and concerted acquisition is by its nature an active method. Beyond that, cooperation enhances larning in several ways. Weak pupils working separately are likely to give up when they get stuck ; working hand in glove, they keep traveling. Strong pupils faced with the undertaking of explicating and clear uping stuff to weaker pupils frequently find spreads in their ain apprehension and make full them in. Students working entirely may be given to detain finishing assignments or jump them wholly, but when they know that others are numbering on them, they are motivated to make the work in a timely mode. The proved benefits of concerted acquisition notwithstanding, instructors who attempt it often encounter opposition and sometimes unfastened ill will from the pupils. Bright pupils complain about Begin held back by their slower teammates ; weak or unassertive pupils complain about being discounted or ignored in group Sessionss ; and bitternesss build when some squad members fail to draw their weight. Knowing and patient teachers find ways to cover with these jobs, but others become demoralized and revert to the traditional teacher-centered instructional paradigm, which is a loss both for them and for their pupils. Gregory ( 2008 ) However I believe concerted acquisition is more than merely inquiring pupil to acquire in a group and work on an assignment together. Most research workers and practicians of concerted larning emphasis that it is a formal instructional theoretical account in which instructors carefully design lessons and activities that are suited for usage by squads. These squads are little, stable, and heterogenous, and have been adequately prepared for working together. When utilizing squads in the schoolroom, I see faculty as holding to direct their attending to six different countries: climate-setting ; squad formation ; teambuilding ; concerted accomplishments development ; lesson design ; and classroom direction.Climate SettingWhile many of my pupils are enthused about the chance to larn with and from their equals, it is non uncommon for me to meet pupils who are loath to take part in any kind of group activities. So, how does one take a category of pupils whose feelings about concerted acquis ition scope from love through indifference to downright ill will and turn them into a community of scholars? The first ( but by no means the merely ) measure is to work on making a category clime that encourages cooperation. My suggestions include: aˆ? Communicate clear outlooks to pupils about Cooperative acquisition on the first twenty-four hours of category. I recommend that you inform pupils that you plan to utilize concerted acquisition, why you use it, and what it means to them. Will they be graded on category engagement? What happens if they come to category unprepared? It ‘s peculiarly of import to allow pupils cognize about your policies on group classs. It ‘s besides a good thought to admit that some people would prefer to work entirely, and to indicate out the activities and assignments they ‘ll be working on independently.aˆ? Problem SetsStudents complete some or most of their prep assignments in squads. The squads are encouraged to include merely the names of existent participants on the solution set that they manus in. The pupils are ab initio disinclined to go forth anyone ‘s name away, but finally they get tired of allowing nonparticipants ( â€Å" hitchhikers, † in concert ed acquisition idiom ) acquire good classs for work they did n't make and get down to exclude names, at which point many hitchhikers-unhappy about acquiring nothings on assignments-start cooperating. The squad gets a class for the assignment, but finally the public presentation of each squad member should be assessed and the consequences used to set the mean squad prep class individually for each squad member. In decision there are many route blocks that may happen throughout the journey to cooperative acquisition. Not all pupils take their duties earnestly plenty. Many feel that their slack will be picked up by the others in the group. Some pupils may be excessively strong of leaders and smother the parts of the other members of the squad. Conflict is a natural byproduct of cooperation. When pupils are asked to work together, it is with the purpose that they will each supply a differing position and or sentiment. When differing sentiments are joined together to make one merchandise, struggle is certain to originate. Conflict can be a really healthy springboard to larning. When pupils dialogue and debate their sentiments they might reenforce their thoughts or disregard them. The ability to listen and be flexible to new positions is perfectly indispensable to the success of a group. Delegating functions may besides assist to ease the instability of attempt. The pupils who do n't lend adequate attempt should foremost be encouraged by their groups. If this proves unsuccessful, the teacher should step in and mediate. It is perfectly unjust to penalize a group for the ineffectualness of one member. Students should make everything possible to stay a concerted and cohesive unit, but if all efforts fail they should be allowed a opportunity to reconstruct a new unit. It should besides ne'er be the duty of the strongest member of the squad to transport the others. Teachers can non presume that all group struggles should be resolved entirely. Classroom mold of effectual group work and role-playing of struggle state of affairss should be directed by the instructor. However many old ages of research and legion surveies can non be denied concerted acquisition is an effectual method for understanding and retaining information. Industry experts can non be ignored when they province that being able to work efficaciously in a squad is an imperative accomplishment. Concerted acquisition is non a replacing for the schoolroom instructor. It is intended to complement the direct direction by doing pupils to be confident minds and active scholars.

Jerusalem History Movie Review Example | Topics and Well Written Essays - 750 words

Jerusalem History - Movie Review Example Jerusalem has got a start some 6000 years ago and proclaimed that the Mount Moriah will connect them to their God. Villages and then a city slowly developed around the mountain. In about 1000BC, King David conquered and made up Jerusalem as the capital for the tribes of Israel. He also brought a belief in new god and then his son, King Solomon built a great temple on the Holy Mountain. 3000 years later, the mountain is hidden under a platform made of stone 'The Temple Mount'. However the Temple was destroyed long years ago, the Jews from all over the world still gather near reminisce of the wall. The wall has got the name 'The Western Wall'. It's said that the God's presence is particularly strong there in the walls. Papers of messages to the god were packed between the stones by the believers. Jews tells that they can hear the voice of God on touching that stones. They strongly believe that the stones are standing there hearing prayers of mankind for thousands of years. Al-Aqsa Mosque in Jerusalem is considered the third-holiest city in Islam. Directly above the western walls, stands a magnificent Islamic triumph, 'The Dome of rock' which was completed when the Muslims were vowed to reform it. Islam proclaims that this was the place where Prophet Mohammed was send to heaven to speak with Allah. Muslims comes to this Dome of Rock can be seen crying because of their strong belief and prayers. About 400 yards away is the 'Church of the Holy Sepulchre', which is very important to Christians. The church was built in 1149 and some say that it's the location of Jesus. Inside the church lies the holy rock of Golgotha. Christians believe that this rock is from the hill where Jesus was crucified. Christians are saying that by seeing and touching that place they can strengthen their faith. With all these religious, cultural and historical claims of the city, Jerusalem is crowded with believers of all these religions even though they are fighting for it. I am concluding the documentation with a verse from the Bible "As the mountains surround Jerusalem, so the LORD surrounds His people from this time forth and forever." ( Ps 125:2 -The Bible) for the peaceful life of Everyone.Documentary Feedback This video should be able to provide information regarding significance of Jerusalem to Jews, Christians and Muslims from the depth of its history. Each of them has their own religious evidences and pilgrim homes and historical bases as stated in the above paragraphs. The selected documentary video has provided almost same religious and historical outlook to the three religions stating a reign that has given birth to the construction of pilgrim homes as well as belief in the respective religion. I recommend this video for getting the viewer an overall brief view on the history of the Jerusalem as well as its equally alienated significance to Judaism, Christianity and Islam. I am happy to bring before you some quotes I just referred. 1. "Without Jerusalem, the land of Israel is as a body without a soul."(Elhanan Leib Lewinsky; Hebrew writer and Zionist leader) 2. "Every

Business Employment Law Essay Example | Topics and Well Written Essays - 2000 words

Business Employment Law - Essay Example As it appears, all other employees apart from Mark agreed to work overtime. In his submission, Mark indicated that he was not under any contractual obligation to work overtime. This infuriated Rebecca who decided to take the matter to the manager. However, it is also indicated that there was always bad blood between the two employees, and this seemed to be an opportunity to settle the scores. The dismissal of mark from the work is unacceptable and therefore he has the right of appeal. While the law provides the employers with the prerogative to dismiss employees for gross misconduct and without warning, the case of Mark is different. Firstly, the company should have let the employees know of the staff shortage. Secondly, such employees ought to have been requested to offer themselves for overtime work to compensate for losses incurred due to such shortage of employees. As it stands, the request to have Mark work beyond his normal hours appears to be an ambush. In addition to that, th e manner in which the information was passed to him is also wanting. It is vital to note that employees just like employers, have their personal rights1. On that material day for instance, Mark had an appointment with his girlfriend. He made such arrangement because he had not been informed of any changes by his boss. Therefore, it seems that the company suffers from lack of good communication and relationship with the employees. Thirdly, the dismissal is unjustified based on the fact that when Mark was employed, he signed a contract that indicated the time that he was to be in the job. His decision however mean it may seem to be was justified. There was no prior complaint that he failed to provide quality work because of incompetent or any other factor. It therefore seems that he was a dedicated person who understood his rights well. It seems that the management failed to conduct its independent investigations to ascertain the allegations2. Relying on the information provided to th em by a fellow employee was wrong since there could have been other reasons which could have prompted Mark to take the decision he did. Even if this was a gross misconduct according to the management, law requires that investigation is carried out. For instance, it is indicated that Rebecca and Mark had a malfunctioned relationship which affected their communication. It is therefore possible that this was a malicious act meant to punish Mark by dismissing him. She may have passed communication to other employees about the overtime work and failed to let Mark know in advance. The management therefore was in contravention of the statutes guiding dismissal. There are various unfair grounds through which one may be dismissed. They include lack of good reason, being asked for flexible hours and also if one refuse to work overtime. From the case, it is outright that the firm did not have objective grounds to dismiss Mark. He was dismissed immediately even though he was innocent. He had a right to choose either to work or not. Employees have their flexible time which they may choose to offer or not. Depending on prior communication with the company, employees may choose to comply or refuse. From the above mentioned facts, it seems that Mark is entitled to make a claim of unfair dismissal and get remedies. The law gives him the right to make such a claim through a trade union3. Some of the methods that would be used to address this issue may include mediation and

Open Ended, Must Be Related to Deserts Research Paper

Open Ended, Must Be Related to Deserts - Research Paper Example Though the Death Valley reaches 134Â °F, under fair weather the Mojave Desert appears to boast off its sparing potential to allow some two hundred indigenous species of plant to thrive upon its creamy vastness, alluding that somewhere, somehow, beauty and hope toward conducive livelihood still exist. With salt flats and metal deposits, one essentially wonders how this might bring industriousness out of probable inhabitants yet seeing the way history has shaped this form of land, it amply seems more rewarding to preserve the features of classical worth which the concerned multitude are aware of. Given the seldom opportunity to explore the Mojave Desert, I would definitely run into the trees and the rest of the thriving nature around, not minding how less diverse they have often been. To bask in the beating sun in the day and feel the heart of the desert in the manner by which its collective substance responds to rays and rays of energy should prove quite worthwhile. Knowing that it i s this side of the world and nature that is rarely visited by leisure or feel-good tripping moments, people must be pondering of an advantage to acquire from the contemplative scenario of the Mojave Desert by night. In my case at least, there could be anticipating a point of pure meditation, if not bliss, sitting outside a humble tent or simply holding breath to give way to a unique sensibility and connection with the sound of certain exotic creatures lurking nearby. By Sylvia Plath’s creative description of its truth, vivid and figurative alike, in the poem ‘Sleep in the Mojave Desert’, she expresses ‘I think of the lizards airing their tongues - In the crevice of an extremely small shadow – And the toad guarding his heart’s droplet – The desert is white as a blind man’s eye, Comfortless as salt. Snake and bird doze behind the old masks of fury.’ Consequently, one recognizes the desert’s wild life that is rather mo re sensitive and reserved than aggressive. It might just be in this occasion that the Mojave Desert reveals its sentimental value before it transforms to another kind of freedom at daybreak. Imagining myself lying on such a spot of expanse to experience a special respiration away from the urban community within this setting, I could picture an atmosphere filled with throbbing as if the desert possesses a spiritual force inviting a desert or every remainder of loneliness in me to join its contained solace then grasp further an understanding of its treasure or capacity for comfort and salvation despite the strangeness of immensity attached with it. The Mojave Desert is never silent though it will never communicate in terms of the human language yet it certainly speaks from the soft spot channeled through the sound, smell, and touch made by the breathing ground, the peculiar bushes, and other plants with all the living reptilian creatures in its keeping. For both events whether sunup o r sunset, it occurs that my physical presence in this desert would amount to a profound engagement with the earth in the purest of natural state, undisturbed by any trace of mankind. While the chief indicators of the desert as in the Joshua-tree and the Desert Spanish Bayonet, a narrow-leafed yucca show the Mojave Desert’s generosity in maintaining their prominence, such splendor I think is in every way a privilege to be part of especially as it radiates

Producer Theory & Existence of equilibrium Assignment

Producer Theory & Existence of equilibrium - Assignment Example There are J producers in an economy. For a producer j, yj represents combination of the quantities of all inputs and outputs. Yj is the set of input and outputs that are technically feasible for the producer j. Without any production in the economy the feasibility condition would imply that the aggregate consumption (input-output) is not larger than the aggregate endowment. If there is production, then the total resources allocated for consumption increase depending on net outputs of corresponding goods. In Arrow-Debreu model the producer’s want ‘profit maximization’ meaning that the input-output combination selected by a firm on a given a price should be such that no other input-output combination gives more profit. We have assumed here that the prices are fixed and firms choose inputs-outputs so as to maximize profit limiting itself to technically feasible combination i.e. yj ? Yj. There are other assumptions that need to be considered for example the one that i s often called the ‘free disposal’ assumption which is- the firm can add any amount of input without reducing output or if we look at it from the cost minimizing concept then it means to add input which can be disposed of at zero cost. If we â€Å"let p be an original price called by the Walrasian Auctioneer and let yj(p) the associated profit maximizing response.

How would have Robert Moses reacted to the economic development Essay

How would have Robert Moses reacted to the economic development imperative - Essay Example â€Å"Governance of the city political system involves a complex set of functions around three broad themes: democratic accountability, the delivery of public goods and services and the maintenance of civil harmony.† (Berg 1) The book by Berg talks about the New York City’s economic development in great depth. According to Berg the city’s political environment depends on the elected leaders and their policies. The policies should result in the formation of a sound system that provides goods and services to its residents. Lastly, there should be conflict management in the economy to maintain law and order; all these form the pillars for a political system of a city. Reading this book and comparing the thoughts of the writer with the greatest builder of the New York City gives us an interesting analysis. Robert Moses was responsible for most of the public activities in the New York City in his era. Moses built bridges, expressways, parkways, and housing schemes and expanded the major universities. In his opinion infrastructure was very important for the development of the city and he worked a great deal for the economic development of the New York City by development its infrastructure. He would have reacted to the manufacturing decline by building more cost effective plants rather than take this as a changing economic scenario.

Reading Research Literature # 1 Assignment Example | Topics and Well Written Essays - 500 words

Reading Research Literature # 1 - Assignment Example Journal of General Internal Medicine, 28(3), 436-443. doi:10.1007/s11606-012-2234-y http://search.ebscohost.com.proxy.chamberlain.edu:8080/login.aspx?direct=true&db=rzh&AN=2012018670&site=ehost-live The purpose of this research is to carry out an examination of hospital discharge processes such as patient education for patients with acute myocardial infarction and identify which discharge processes may be useful in performance in medical facilities for hospitals AMI care. The research used qualitative study of US hospitals based on RSMR reports by CMS. Hospitals used ranked in top and bottom 5 % in consecutive two years as reported by RSMR. The method used was deviant case sampling. Data was collected using interviews and ground theory approach through visits to the 14 sites to the hospitals. The focus of the study was on hospitals that ranked in the top 5% and bottom 5% of RSMR. The hospitals chosen could be able to perform percutaneous intervention. The hospitals sample used was based on socioeconomic status, geographical and RSMR status. The sample was adequate for the research design because results could be deduced form it. Results showed that there were distinct differences in discharge processes between high and low performers in hospitals. Such results were only finalized due to the sample used. Ancheta, I. B. (2006). A retrospective pilot study. Dimensions of Critical Care Nursing, 25(5), 228-233. http://search.ebscohost.com.proxy.chamberlain.edu:8080/login.aspx?direct=true&db=rzh&AN=2009297932&site=ehost-live A pilot study was conducted under authority from HIPPA. 300 clinics records of patients were used in the investigation of the study. Data collected was demographic such as age, ethnic background, and marital status. The focus of the study was on the patients records that met the criteria of diagnosis of chronic stable CHF secondary to decreased systolic left ventricular dysfunction EF of less

Roles, Responsibilities and Relationships in Lifelong Learning Essay Example for Free

Roles, Responsibilities and Relationships in Lifelong Learning Essay a) As Gravells (2012, pp.19) states, the legislation, regulatory requirements and codes of practice relevant to a teacher in the lifelong learning sector will â€Å"differ depending upon the context and environment in which you teach†. For example, different organisations and employers are likely to have differing policies and guidelines, such as dress-code, time-keeping, equalities, regulating the role of the teacher. When teaching accredited courses it is necessary to be aware of the requirements of external bodies, such as Ofsted, which may inspect provision, as well as awarding and funding bodies, such as an FE College, which will require evidence to assure the quality of qualifications and courses and course attendance. There is various legislation and codes of practice relevant to the role of the teacher. Generic examples relevant to my role as a trade union tutor are listed in the table below: There will also be legislation and codes of practice relating specifically to the subject area being taught, type and age range of students, and environment. Thus, the Children Act (2004) will be relevant to those teaching learners under 18 years. I have listed in the table below some of the legislation and codes of contact relevant to my role as a trade union tutor: Health Safety (Display Screen Equipment) Regulations (1992)| Information Technology Codes of Practice| Trade Union Labour Relations (Consolidation) Act (1992)| ACAS Code of Practice: time off for trade union duties and activities| Legislation, codes of practice and regulations can change over time, and from organisation to organisation, and course to course. It is therefore important to check these regularly and ensure that, as a teacher, your knowledge and skills are up to date. b) â€Å"boundary n., pl. –ries. 1. Something that indicates the farthest limit, as of an area; border† Sinclair, J.M. et al, 1994, pp.187. Thus, boundaries both help to both define and limit our role as teachers; they are core to recognising our own areas of responsibility and expertise, and to recognising and respecting those of other professionals with whom we may work. The boundary between the role of the teacher and the specialist is seldom clear. Therefore, to more clearly understand where appropriate boundaries lay, it is important to understand the role of the teacher. These can be broadly outlined by the teaching cycle, which consists of five processes: identify needs, plan and design, deliver/facilitate, assess and evaluate. As a teacher I may encounter barrier in each of these aspects of the teaching/learning cycle, and I may need to seek the assistance or guidance of other professionals. For example, if IT equipment is required to deliver, then it is the responsibility of the IT Officer to set this up. Similarly, at times it is necessary to invite a specialist, such as a lawyer, to provide briefings on particular areas such as legislation or to consult with them in the development of course materials. As a trade union tutor I regularly work alongside colleagues in a variety of professional roles, including: lawyers and legal advisors, dyslexia and learning support services, trade union officials, technicians and IT support, Human Resources managers, college administrators and other tutors. As a teacher it is important to engage with other professional roles in a confident, respectful and professional manner, and to recognise and continually assess when aspects of my role can be more effectively dealt with by another trained professional. And again, as Gravells (2012, pp.16) says, â€Å"If you are ever in doubt about the boundaries of your role, always ask someone else† c) â€Å"The IfL Code of Practice states: Members shall take reasonable care to ensure the safety and welfare of learners and comply with relevant statutory provisions†. (ibid., pp. 51) Having identified barriers to learning, it is then important to identify the correct services to which learners may be referred. These points of referral can be simply separated into internal and external support services. Internal services are generally those provided by the education provider or organisation. Thus, many FE colleges have student support services which might include counselling, financial support, learning support etc. Trade unions may provide less internal services for learners, but there is generally an Education Officer or department, which can provide support to learners, and sometimes bursaries, and there is usually an IT department which can provide technical support and assistance. Many unions also have Learning Organisers, who can provide specialist advice and referral, and access to Union Learning Fund (ULF) resources. In addition, full-time union officials can assist learners in negotiating time off and financial and other assistance from their employers, and will work with them to develop an Individual Learning Plan (ILP). External support services generally refers to specialist organisations can refer to organisations such as Samaritans, Lesbian Gay Switchboard, NHS Direct, which provide specialist support and advice on specific issues which may affect learners. Within trade union education, external support services may also include referring learners, with their consent, to their employer. Many employers can provide financial and other assistance with learning, and offer support for staff with dyslexia and those for whom English is a second language. There are also other organisations, such as NIACE and the Workers Education Association (WEA) which provide additional training courses. d) â€Å"A good first impression will help establish a positive working relationship with your students.†, states Gravells (2012, pp. 10), â€Å"The way you dress, act, respond to questions, offer support†, all of these factors and more will place a part in setting the boundaries and establishing appropriate behaviours amongst learners. As a teacher it is vital to set a positive example, and to facilitate learners in establishing ground rules for behaviour during lessons, such as arriving on time, keeping phones on silent and listening respectfully to others. Learners’ involvement in establishing the acceptable standards of behaviour is key to gaining their buy-in, and thus in maintaining and regulating behaviour on an ongoing basis. Establishing routines in the learning context can be helpful, and it is necessary to constantly monitor, review and evaluate the behaviours within the lesson at all stages of the teaching/learning cycle, and to encourage and engage with feedback from learners regarding their experiences. In each situation it is necessary to determine appropriate actions; if unacceptable behaviour is repeated by one or more individuals, it may be necessary to address this with learners on a one-to-one basis in order to identify and, hopefully, to address the causes of any problems or issues. Bibliography Gravells, A (2012) Preparing to Teach in the Lifelong Learning Sector – The New Award, 5th Edition, London: Sage. Lefrancois, G.R. (2000) Psychology for Teaching, 10th Edition, Wadsworth. Sinclair, J.M. et al (1995) Collins English Dictionary Updated Edition, Harper Collins.

Zara Organizational Structure

Zara Organizational Structure Structure relates to a skeletal framework of activities and processes in an organisation and specifies the roles of these in achieving goals and objectives of the organisation. According to (Mullins, 2009), a good structure is highly important due to the fact that decisions on structure are primary strategic decisions which can make or break an organisation. One important aspect of a good structure is the human element. Organisation structure should be designed so as to encourage employees and increase the morale and job satisfaction of organisation members which will result to overall organisation efficiency. (Mullins, 2006) describes nine basic considerations in the design of organisation structure. The fundamental step is to define organisational objectives to enable further analysis and comparisons of other forms of structure. Clarification of objectives A clear definition of objectives is vital to provide a framework for the design of structure of an organisation. Organisation objectives provide fundamental schemes for division of labour and creation of group units and sub units. Clearly stated aims and objectives will assist in decisions on the strategy and structural dimension to employ to achieve organisational objectives. Task and element functions Certain functions must be performed in order to produce a good or service, from the development of the good or service to finance of resources used in the complete processing. These functions are referred to as the task functions. The results of the task functions must be coordinated to ensure the efficient achievement of total objectives of the organisation. Element functions refer to vital parts of the management process and are supportive of the task functions such as human resources and public relations. Division of work An organisation needs to accomplish an overall task of allocating many different activities to groups of people or individuals to achieve its objectives. The division of work and grouping together of individuals should be organised according to a basic criterion to establish a coherent link between the activities involved. The division of work and linkage of activities occur in various ways such as specialisation, use of similar resources or common expertise of organisation members as the most commonly used basis for grouping activities. Others include division by product or service, division by location, division by nature of the work performed, division according to common time scales such as shift working, division according to staff employed such as allocation of work based on experience and so on. Centralisation and decentralisation The extent of centralisation or decentralisation refers to the point of critical decision making in an organisation which reflects patterns of authority in a structure. In centralised structures decision making authority is within the power of top management while decentralised structures, decision making authority is delegated (Rollinson, 2005). The arguments in favour of centralisation in an organisation entail the easier implementation of a common policy, easier coordination and management control, preventing sub-units from becoming too independent, over-head cost reduction and faster decision making because of the smaller number of people involved. In contrary, arguments for decentralisation include decisions being made at a point closer to operational levels, increased responsiveness to local circumstances, improved level of personal customer service, more flexible structure, control is distributed more evenly which provides opportunity for development for those lower down, and encouraging effect on motivation and morale of staff. Basically, decentralisation tends to be easier to implement in the private sector organisations than public sector ones where procedures and protocols are the order of the day. Decentralisation being a more flexible approach provides support for employee participation and empowerment at all levels which increases innovation and improves technology while centralisation ensures professionalism in all activities by maintaining effective coordination and overall control of the organisations activities as a whole. A mix of both such as being global and local, practically being decentralised with a central control and authority should produce an organisational advantage. A vivid illustration of decentralisation is the Zara fashion enterprise (cited in Mullins, 2009, p.596), where the company derived its success from integration of design, production, logistics and sales within companies globally rather than separating and outsourcing this different business elements unlike its contemporaries in the fashion industry, while still keeping control of all major operations in Spain. The company rejected rigid organisational structures in favour of a more flexible approach which comes from a highly integrated, fast and efficient form of communication between its global network of outlets and central hub of operations in Spain. The industry average time for introducing a design into the shops is six to nine months; Zara achieves this task in three to four weeks. What is peculiar here is that Zara only makes what is selling at the moment, store assistants and managers constantly get information about what is selling and how quickly it leaves the racks implyin g that local managers have a strong influence on their stores success and thus the company overall. On the other hand, an illustration of centralisation is that of Nissan Motor Company (cited in Certo and Certo, 2006, p.123), a successful global automobile manufacturing company where the new CEO ordered calls for the elimination of 30 per cent of production capacity in Japan due to recent financial difficulties. The CEOs plan is to help reduce expenses as well as close offices in New York and Washington with a view to centralise company operations in Japan to enhance success. Principles of organisation The ten principles of organisation include principles of the objective, specialisation, co-ordination, authority, responsibility, definition, correspondence, span of control, balance and principle of continuity. Span of control This refers to number of subordinates who report directly to a particular manager or supervisor. Span of control is larger at lower levels of the organisation where responsibility is concerned more with the performance of specific tasks. If span of control is too wide, supervising too many subordinates effectively becomes difficult and stressful for managers as well as planning and development, training and control. Narrow span of control may lead to low morale and initiative of subordinates due to close supervision level, and also increase administrative costs. Chain of command This refers to the number of different levels in the structure of the organisation, the chain of hierarchical command. Every employee must know there position within the organisation structure. The combination of chain of command and span of control determines the overall pyramid shape of the organisation and whether the hierarchical structure is flat or tall. Flat hierarchical structure depict a broader span of control and few levels of authority while tall structure depicts narrower spans of control and more levels of authority. There is no ideal hierarchical structure but it is best to have a balance of both. An illustration is Mc Donalds fast-food restaurants (cited in Certo and Certo, 2006, p.236). Mc Donalds decided to reorganise its global senior management team as a reaction to its recent poor financial performance. This involved creating two geographic areas of responsibility. The new positions focuses on managing operations in the Americas while the other in Europe, Asia and the Pacific. The new structure evolved with a view to create clearer lines of responsibility and more focus on the companys financial performance within the territories. The new organisation hierarchy was also aimed at helping the company make business decisions more quickly. Formal organisational relationships This refers to individual authority relationships arising from defined patterns of responsibility in an organisation. This are identified as; line relationships where there is a direct relationship between subordinate and supervisor; functional relationships between people in advisory positions, and line managers and their supervisors; staff relationships are usually personal assistants who exercise only representative authority. Line and staff organisation This provides a means of making full use of specialists while maintaining the concept of line authority. Project team and matrix organisation A project team refers to a separate unit set up temporarily for a particular project which is disbanded when the duration elapses while matrix organisation involves functional departments specialising in numerous activities. In conclusion, the overall effectiveness of the organisation will be influenced both by a healthy structural design, and by the behaviour of people who work within the structure. There are numerous variables and factors which influence the soundest structure. Nothing like a perfect organisation exists but it is crucial to establish a framework of order and system through which organisation activities can be planned, organised, directed and controlled. Since structure divides up the organisation into different parts and specifies what roles these will play in achieving specific aims and objectives, it also provides for control and coordination of the parts to achieve this goals. Basically, the essence of structure is the division of work among organisation members, the coordination of activities and various jobs which are inter-related. References Certo S.C and Certo S.T. (2006) Modern Management. 10th edn. Prentice Hall Mullins, L.J. (2009) Management and Organisational Behaviour. 8th edn. Financial Time Press Rollinson, D. (2005) Organisational Behaviour and Analysis: An Integrated Approach. 3rd edn. Financial Times/ Prentice Hall