What Are The Most Lasting Effect On American Government

1. What are the legacies of the Marshall Court? Which decision do you think has had the most lasting effect on American Government? The Marshall Court has left numerous legacies in place in order to help establish this great nation. Chief Justice Marshall was a man that had many impacts on our Government from strengthening the authority of the Supreme Court in Marbury v. Madison, which gave the courts judicial review, to Gibbons v. Ogden, which gave the national government undeniable power over interstate commerce by ruling a New York steamboat monopoly invalid. There were many other cases as well that were important to the government’s growth; such as Fletcher v. Peck that made it where a state law can never overthrow anything that came against the Federal Constitution. Chief Justice Marshall presided over many cases and ruled over such cases in a way that he felt would benefit the ever growing American nation. Through it all he helped establish three legacies; helping to make the federal government supreme over all things that would control the economy, he also helped to open the pathway where thereâ₠¬â„¢s an increased federal part to be played in economic growth, and finally in an effort to further any and all new industrial capitalist economy, he helped to make permanent protection for corporations and private businesses so that the states couldn’t interfere. These legacies helped to establish a better American nation in more ways that we can know. A key part of all of thisShow MoreRelatedThe Great Depression Of The 1930s Essay1689 Words   |  7 Pagescrash. The Global Crisis on the other hand, was a more recent recession caused by sub-prime mortgages and mortgage backed securities, that didn’t have as much of a lasting effect as it did on having a spreading effect on other economies. 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Human Resource Planning and Staffing Samples †MyAssignmenthelp.com

Question: Discuss about the Human Resource Planning and Staffing. Answer: Background Information The process of determining the future employment requirements and the availability of the working employees and others externally hired to meet the requirements and executing the businesses strategies in an organization is called workforce planning (Chiba, 2017). This is the basis of staffing in many organizations, even in Cherns, since it aids in identifying and addressing the unforeseen challenges in the company when executing business strategies. The five steps in the process of workforce planning include the following: Identification of the strategies Explaining firms philosophies and decisions on staffing. Analyzing of the workforce. Developing and implementing action plans. These help address any gaps between labor supply and demand forecasts. The strategies should go hand in hand with the philosophies of the firms talents. They will include recruiting, compensation, retention, management of succession, training as well as development Monitoring, evaluating and revising of the action plans. The first three steps have been extensively discussed and we will only discuss the last two steps. Overview of Forecasting The ideal business forecasting demands that an organization should identify its key operational factors (Teigen, 2015). This operational factors includes the forecasting of information to compile complete and accurate data in real time. The above steps will improve Cherns ability to make forecast that are accurate about the needs of the staff. According to (Ravazzolo, 2015), the time line for forecasting any business activity will be most essential in the organization and will depend on whether the industry that organization operates is either predictable having a relatively stable environment of between five to ten years forecasting period or has an unstable, dynamic environment of 6 to 12 months period of forecasting. For Cherns its period of forecasting lies within a range of 3 years. These forecast are just dynamic estimates hence should always be revisited and an update done regularly (Chiba, 2017). Since these forecasts are sometimes uncertain, Cherns should develop estimates as ranges that will provide low, probable and high estimates as well as recalculating the estimates as adjustments can happen anytime within the business environment as well as the expectation or the assumption of the firm can change. The specifics of forecasting A firm should be able to predict its labor supply and demand and also locate any reliable, standard sources of information both inside and outside the firm to predict the business operations. Some of the business operation forecasts will include rates of interest, currency exchange rates, competitors, seasonal operations and many others. Forecasting Labor Demand When doing this forecast it is essential to look at the minimal and the optimal levels of staffing to analyze the demand for labor. The demand for labor at Cherns will depend on the forecasted business activity and the needs of the business, that depend on the strategies of the business (Belhaj, 2013). The needs of any business will include the following: achieving the levels of staffing that will help generate a certain amount of revenue at a certain time interval, increasing this levels of staffing to enhance a growth strategy, decreasing this levels of staffing when restructuring the firm or obtaining new skilled talents essential in the creation of new products or services (Ferreira, 2016). Some of the ways that help forecast demand for labor include scatter plots, ratio analysis, trend analysis, and ROI analysis. Forecasting Labor Supply To ensure strategic and good staffing then a firm will have to be keen on their markets for labor. This is crucial for Cherns so as to maintain its competitiveness in the market. During formulation of business strategies then a firm will have to acquire adequate information on the quality and number of employees required in that organization (Apichatibutarapong, 2015). So it will be vital for any company even Cherns to have an appropriate estimate of the available talents for its topmost positions before even coming up with strategies that depend on its talents. In order to forecast the accurate labor supply, Cherns should be able to combine its current levels of staffing and the anticipated gains or losses. This will help give an estimate of the target position for a given time point (Apichatibutarapong, 2015). The losses or gains anticipated in the firm will be looked upon by identifying the data on previous operations, and estimations of future adjustments. All these estimates are affected by the firms internal and external labor market which includes people not working for the firm. To forecast the firms internal labor market, the organization will need to estimate the levels of competency and the employees number at the end of the period of forecasting (Ahokas, 2016). Additionally, it will need to forecast the talent resources, minus the anticipated losses from the employees at the start of the period of forecasting. These losses are as a result of factors such as demotions, promotions, retirements, transfers, and resignations. Any gains that are anticipated will be added. The gains may be from the promotions, transfers among others (Rachid Belhaj, 2013). Various methods are available to help forecast the internal labor market and this include employee surveys, talent inventories, replacement charts as well as the judgments from management. I have made a well description of one very vital method called the transition analysis in this paper. Transitional Analysis Transition analysis refers to a method that is applied to scrutinize the labor markets and predict the internal supply of labor. This technique is quite simple and also very effective in making analysis of the internal markets of labor in an organization. This is very essential, not only in planning of the workforce but also in answering of the questions posed by recruits about the paths of promotions and the promotion likelihood (Chiba, 2017). It also helps predict the employees currently working and are likely to be employed at some point in different positions. Nevertheless, this analysis is best for a limited number of jobs for easy interpretation. The below matrix I have developed will help Cherns to see its predicted employees for the next year. Resolving of the gaps in the labor supply To address efficiently the existing gap between the required number of employees and the current number of employees, the company will be required to design an action plan. This action plan will address efficiently the forecasted surplus or shortage of employees (Ahokas, 2016). In addition, understanding whether a surplus or shortage of applicants is as a result of temporary factors or just a reflected trend likely to go on is also vital since different strategies in staffing are essential. As clearly shown in the transition matrix, Cherns have excess employees. One essential solution to this will be transferring employees to new locations that the company has planned within its five years (Belhaj, 2013). Most of those employees should be transferred to the fifteen stores that this firm plans to open every year. This transfer will enhance increased revenues. These will lower the costs of staffing since new few employees will be required to fill these stores. Additionally, Cherns will also be able to retain its skilled talents contributing to the companys growth. Nonetheless, if this does not happen then Cherns does not have other solutions at its hands whether these surpluses are permanent or temporary. Temporary Surpluses of Employees This happens when a company faces a temporary slowdown. If this occurs each and every time, then the company will need to employ some temporary workers that it can easily retrench when the business operations are slow (Ahokas, 2016). This will help the permanent employees and provide them with job security. Another options are doing layoffs but this should be temporary and need to last for periods more than 6 months to be economical since there will be additional costs of rehiring and retraining. Permanent Surpluses of Employees In this case Cherns should consider implementing permanent laying off of employees, no employing of employees to feel the vacated positions, implement early incentives on retirement, and other methods. These methods could cost the firm. Early retirement of some employees will cause the firm to lose the skilled employees. Layoffs will hurt the workforce as well as damage the firms reputation (Chiba, 2017). Some of the unfilled positions will make the organization departments understaffed. Action plans will be essential to address this surplus and should involve reassigning of employees, steering employees away from the jobs in that position. However, Cherns is also facing high deficit in the full-time sales associate positions, that should be well assessed to maintain the firms competiveness. On the matrix above, Cherns will need to employ at least sixty employees to reach its goal of employing a hundred and forty full-time employees. Also, it needs to have at least 1778 applicants in order to recruit employees to overcome the deficit (Belhaj, 2013). The calculation was based on the previous recruiting data. To determine this number then it is essential to look at the previous yields in staffing as well as the yields in hiring. Based on the above the following chart was developed: Based on the attached documents it can be clearly shown that this shortage is likely to be temporary (Belhaj, 2013). This is because the employment changes anticipated to occur between now and ten years at the current state which this principal store is located almost corresponds the employment changes of the entire nation. When assessing this shortage. It is vital that hiring in this case is reduced since it costs the organization more money. Furthermore, expensive recruiting methods like using of search firms or lowering the standards will not always work in this method. The expensive methods of recruiting employees will always drain the budget of recruiting and not even realize the goal in recruiting (Statistics Norway, 2016). Nonetheless, other methods can still be used to realize the 140 target number of employees. This will include offering of new incentives on hiring such as bonuses on the sign-on as well as bonuses on retention. Persistent Talent Shortage Based on the findings and the conditions above, a shortage of employees may occur and even last for a longer period as per the preferences of consumers (Ahokas, 2016). For Cherns to maintain its competiveness capability in the market then it needs to decrease its demand for the talents and increase its technology innovation and also redesign jobs so that different people with the required talents are only required (Bjrnstad, 2010). Cherns may also increase its supply of the required qualifications since this is more practical and faster. Conclusion I hope that this paper has the required information as per the Cherns staffing needs and its planning in the work force. I am optimistic that this information will be essential in forecasting your business activities. Similarly, it will inform you on the demand and supply for the employees inside and outside the environment of your business. I also hope that all the assessments of any gaps are also efficient in the assessment of your businesses. Recommendations Cherns should continuously and systematically identify the talents of each candidate. Secondly, the company should also build the capacity of its current program. Also it is of utmost significance for the organization to put into consideration succession management, and to treat it as a progressive process. Finally, there is need for the company to ensure that it assesses the competencies of each applicant so as to come up with suiting training programs. References Apichatibutarapong, S. (2015). Business Forecasting Technique on Mobile Devices by Using R - Programming. Suan Sunandha: Faculty of Sciences and Technology, Suan Sunandha Rajabhat University, . Francesco Ravazzolo, a. L. (2015). Forecasting GDP with global components. This time is different. Norway: Norwegian Business School. Karl Halvor Teigen, a. S. (2015). Forecasting forecasts: The trend effect. Judgment and Decision Making, 416428. Jussi Ahokas, J. H. (2016). Forecasting Demand for Labour and Skills with an AGE-model in Finland. Finland: Government Institute for Economic Research. Rachid Belhaj, a. M. (2013). A Markov Model for Human Resources Supply Forecast Dividing the HR System into Subgroups. Journal of Service Science and Management, 211-217 . Kris Johnson Ferreira, B. H.-L. (2016). Analytics for an Online Retailer: Demand Forecasting and Price Optimization. Harvard: Harvard Business Schoo. Roger Bjrnstad, M. L. (2010). Demand and supply of labor by education towards 2030 . OsloKongsvinger. Statistics Norway. (2016). Education-specific labour force and demand in Norway in times of transition. Oslo - Kongsvinger: Statistics Norway. Tomoaki Chiba, H. H. (2017). Time-Varying Transition Probability Matrix Estimation and Its Application to Brand Share Analysis. Plos One.

Balanced Scorecard Case free essay sample

o Read and analyze Case 3, The Coors Case Balanced Scorecard, at the Institute of Management Accountants Web Link located in Week Threes learning materials. In your Learning Team, answer the six questions at the end of the case: o Link the Coors vision statement to Coorss key business strategies or six planks. Are there any gaps? o Link the Coors Operation and Technology (OT) department vision statement to the OT strategies or supply chain guiding principles. Are there any gaps? o Provide possible explanations for the performance gaps identified by Coors benchmarking analysis. o Answer the frequently asked question (FAQs) already raised by employees about the Coors BSC project. o Considering the prior gap and benchmarking analyses, design specific performance measures with benchmarked targets, where feasible, and reporting frequency to create an operational and acceptable BSC for Coors. o Perform an economic value-added (EVA) analysis to assess its potential as a BSC financial performance measure for Coors. We will write a custom essay sample on Balanced Scorecard Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page o Write a paper in which you incorporate your findings from the case questions and address the following: o What were the companys objectives in implementing the Balanced Scorecard? What problems was the company trying to address? o Describe the implementation plan and process. How was implementation affected by the company characteristics such as culture, competitive environment, management style, or capabilities? Identify at least three company characteristics that affect the plan. o What issues were encountered? How is the company addressing implementation difficulties or concerns? o Do you think the company will be successful? What changes might you make to improve on the companys actions or intended actions? Suggest at least three recommendations to management. o Format your paper according to APA standards.

Impact of plastics on the environment

Impact of plastics on the environment Many people are exposed to dangers associated with plastic production every day. Wastes resulting from plastics products find their way into water bodies where they act as transport means for microorganisms which end up in marine habitats such as seas causing infections to organisms living in water.Advertising We will write a custom essay sample on Impact of plastics on the environment specifically for you for only $16.05 $11/page Learn More When plastic degrades, it produces plastic dust which causes pollution to aquatic animals. In addition, this dust causes contamination of human consumer goods especially food products posing a great threat to human health. Aquatic animals that feed on fish may mistake plastics for jellyfish and consume them and this may lead to death of such animals. In other cases, plastics that have been disposed in landfills may cause leaching of chemicals which end up in water bodies causing contamination (Uciha, 2010, p. 1). Imprope r disposal of plastics may have physical impacts on birds where they entangle them to death. The entangled birds may as well be deposited in water bodies alongside the plastics during which they may chock the fish. Impact of mercury on the environment Mercury is one of the most important life threatening chemicals to humans. Mercury exists in many products especially scientific ones. When released through degradation, it is referred to as methylmercury and finds its way into water bodies from where it is ingested by man (Uciha, 2010, p. 1). It has adverse effects such as reducing the capability of the human immune system and affecting the normal functioning of human enzymes, genes and the nervous system. Animals that feed on fish are also affected in a similar manner. However, mercury resulting from broken thermometers is not as much toxic although it may cause gingivitis to those who inhale it. Impact of natural gas and oil production on the environment Extraction of oil produces t oxic substances that may be lethal to aquatic life. Humans may also suffer cardiovascular problems due to such toxic substances. Pathways of photosynthesis may as well be blocked especially where dynamite is being used for extraction, leading to low production of food (Uciha, 2010, p. 1). Reference List Uciha, A. (2010). Environmental impact. Web.Advertising Looking for essay on environmental studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More

Philosophy paper option Essay Example | Topics and Well Written Essays - 2000 words

Philosophy paper option - Essay Example However, this philosophy has been dynamic from century to century, as scholars from different backgrounds tackle the philosophical commentaries in other rational approaches. Chan explains that it is simple and easy to change with the ethical philosophies in line with the system of development and abandonment of legalism. Confucianism led to absorption of many challenges emanating from doctrines of Buddhism (Rahula, 1974). As a result, the intellectual life dominated and formed Neo-Confucianism. In the â€Å"source book in Chinese philosophy† book there is an attempt to make people in the west understand the culture of Asian people as well as their philosophy. This book explains more on the Chinese philosophy as written by great scholars in the Chinese era. This enables the author to bring a balance between the ancient, modern as well as medieval times. In addition to this, he explains about the different kinds of periods that existed in Chinese history with examples of Taoism, Confucianism and also Buddhism (Chan, 1969). Most of the history regarding Chinese philosophy had features of cultural as well as intellectual developments. Philosophy of Change There exist several ties between the mentioned origins command in the Chinese philosophy and the countries aboard. ... Moral cultivation depended fully on neo-Confucianism of which was keystone in milestones of progression. The characters of wealthy, powerful and authoritative human compares identically with the heavens reach from earths. The brilliance of the sun can well demonstrate the effectiveness of such a man feared by both the living people of the history of China’s philosophy as well as the modern neo-Confucianism and communism in regards to philosophical contexts (Chan, 1969). The relationship between modern philosophy by western philosophy and Chinese, India, Persia and other European countries is very Socratic. This is because most philosophers dealt with the supernatural and mythological underlying of concepts. They also involved metaphysics where they believed fire and water were infinite and boundless in touch and feel. This give them a green right to compose materials on the ways of nature and its relation to supernatural testimonials by time lapse (Nishida, 1992). With the ris e scholars, the ethical structures and seriousness to enlighten or rather straighten the spiritual life and internal righteousness to mould up the external uprightness. Change has come upon in the diverse understanding of philosophy in that philosophers and people all round believed the heaven to be high while the earth to be low. Therefore, they give them a credit of honorable place and humble states in the both places according to ones ethical uprightness. Tranquility was held with constancy as strengthening phenomenon of transformation of earth creatures. These were well classified according to good fortunes and bad fortunes to the natives where good fortunes originated from the heavens while bad fortunes originated from bad and evil people who

International business Essay Example | Topics and Well Written Essays - 500 words - 2

International business - Essay Example nalysis will seek to draw a level of definition to each and state the ways and means by which they are both separate yet at the same time intricately related. With relation to international business, this is an activity that takes place on what can be understood as a micro level. In this sense, key players within the private sector engage in exchange of goods and services which directly mirror the same process that occurs on a national and/or domestic level. In this way, one can understand that role that individuals, managers and other shareholders hold within this level of transaction as being the most important; with the roles of politicians only being tangential or secondary as long as no barriers to exchange exist (Buckley 2009, p. 330). With relation to the term international trade, this encompasses the activities that have previously been discussed within the preceding paragraph detailing international business activities. For this reason, the international trade definition is something of a catch all definition which all of the activities of international business and the tangential and related aspects thereof are included. Moreover, when one discusses the term international trade, there is a level of emphasis that must necessarily placed on the role that politicians play with regards to regulating the flow of trade between two or more countries (Rasche 2012, p. 681). Although this same type of regulation is exhibited within international business, the term international trade necessarily implies a more macro view of the system as opposed to one that is purely focused upon a more micro approach. The fact of the matter remains that trade and international business are in effect two sides of the same coin. Regardless of the level of differentiation that can ultimately be discerned, the true differentiation that is most recognizable is the involvement of the key players within the process. Due to the more macro view of international trade, the level

Various Aspects Of Integrated Logistics Economics Essay

Various Aspects Of Integrated Logistics Economics Essay A New Zealand entrepreneur is planning to launch a business in Western Europe; Japan; China and CIS/Eastern Europe and they have appointed you as a consultant to advice on opportunities and challenges facing firms seeking to perform logistics activities in the above mentioned countries. (Your answer should not exceed 1500 words) Global Logistics Opportunities and Challenges Western Europe consists of United Kingdom, Netherlands, Belgium, Luxembourg, France, Germany, Italy, Ireland, Denmark, Norway, Sweden, Finland, Austria, Switzerland, Portugal, Spain, Greece, Malta and microstates of Vatican City, San Marino, Monaco, Andorra and Liechtenstein. Western Europe is considered as major contributor of the European economy. Its determining characteristics are common currency, tax equalization, political homogenization and standards homogenization. Logistically speaking Western European markets offer a great opportunity for exploiting economies of the scale and size in moving goods throughout the Europe opting from a number of transportation modes. European transport networks have grown because of deregulation of transportation; shipments, optimal route and plan scheduling, and the development of national services. The number of long-distance transports has grown significantly with the largest share of freight transports as road transports. The preferred mode s of transportation in the area are roads and rails, closely followed by sea freight. In addition, the Chunnel links the UK with the rest of Europe reducing the transportation cost to a great extent. Figure 1: Logistics Hubs in Western Europe Source: (DHL Discover Logistics, n.d.-a) The logistics systems in Western Europe are characterized more by political change associated with EU enlargement than by geographic features. In Western Europe transport, storage, packaging and administrative jobs are becoming noticeably more efficient due to uniform regulations. The transport networks are very well developed but average shipping distances have grown principally in the wake of the European Unions enlargement. Outsourcing activities are increasingly affecting logistics in Western Europe because companies no longer consider logistics to be a core business. Instead, larger distribution networks are developing at a rapid pace. Global firms prefer vertical integration and go for direct marketing and distribution in order to reduce inventory and total logistics costs. The changes in the logistics sector have generated challenges of increased efficiency in shipping, packaging and labelling. Here, the reduction of customs processing plays a critical role. In addition, techn ological improvements throughout Europe are almost uniform and not just clustered in individual countries. As a result, order processing, inventory management, warehousing and IT technology are being further centralized. In nutshell, the competitive situation in Western Europe is intense as compared to the rest of Europe. Japan Japan has evolved into an economic powerhouse of Asia and created a highly developed logistics system in spite of challenging geographic conditions. On one hand, such a system is necessary to offset the Japanese islands lack of raw materials. On the other hand, it is the foundation for expanding the positive growth of the export nation. The countrys main manufacturing and therefore, logistics hub lies in a triangle around the cities of Tokyo, Nagoya and Osaka on the island of Honshu. Air transport, in particular, plays an important role here. The most important means of freight transport in Japan are road transports and coastal shipping. Almost ninety percent of the transport is carried by trucks. The role of rail transports is almost non-existent. But this could change in the years ahead. A portion of sea freight has been shifted to air transport in recent years. As a result of this shift, international air transports on trans-Pacific routes have climbed tremendously. Compared with other industrial countries, Japans distribution system is very complex and inefficient leading to high distribution costs. Most aspects of goods distribution in Figure 2: Logistics Hubs in Japan Source: (DHL Discover Logistics, n.d.-b) Japan is tightly regulated by the government. Joint distribution is typical; competitors who make deliveries to the same businesses tend to use joint delivery capacities and trucks. The logistics market in Japan is opening up to international service providers which are already successfully competing against Japanese companies in areas such as storage, distribution and complex contract logistics. The major logistics challenge is traffic congestion in metropolitan areas around the industrial hub. Just-in-time systems require small and frequent shipments to meet customer requirements. The distribution system in Japanese market is characterised by non-store channels, carrying least inventory. It is helpful in introducing new products through mail order, catalogue sales, and tele-shopping. Shared distribution system is common among competitors. Uniform palletization is used to avoid complicacy in operations. China Chinas logistics market is opening up gradually to the outside world. Logistics enterprises are reorganizing and integrating in the competitive environment. It is more and more obvious that state owned, private owned and foreign funded enterprises are surviving and thriving in the competitive markets. With the increasing demand of logistics, the logistics service for enterprises is changing from low value fundamental services to the high value added services. Logistics infrastructure, integrated logistics, traffic and transportation, and delivery services provide huge investment opportunities. However, the related risks must be put into account, and firms should be cautious when choosing investment projects. Figure 3: Logistics Hubs in China Source: (DHL Discover Logistics, n.d.-c) In some parts of China, due to advancement in technology, the road network now approaches Western standards. Modern freeways have been built in the Pearl River delta as well as in Shanghai and Beijing. Parts of this network extend far into the countrys interior but the standards and quality of the road drops as we move away from the cities particularly in the areas located away from the metropolitan areas. As a result of the underdeveloped infrastructure outside the metropolitan areas, logistics costs are high in an international context. In comparison to other means of transport, the rail network is almost inappropriate for logistics operations due to poorly built rail lines. For example, a container takes five days to journey by train from Hong Kong to Shanghai (DHL Discover Logistics, n.d.-c). A transport by ship takes about the same amount of time, but is much cheaper. Rail transports play a major role only in the shipment of bulk cargo like coal or iron ore. As a result, rail tr ansports are not particularly attractive to international companies for general logistics operations. The key challenges for the Chinese logistics industry are: Poor infrastructure: insufficient integration of transport networks, information technology (IT), warehousing and distribution facilities. Regulation: exist at different tiers, imposed by national, regional and local authorities and often differ from city to city, hindering the creation of national networks. Bureaucracy and Culture: companies need to build links with political agents at various levels. Moreover, it is difficult to repatriate profits back to home country. Poor training: in logistics sector and the manufacturing and retailing sectors, both at a practical level, i.e., IT, transportation and warehouse as well as at a higher strategic level. Information and communications technology: lack of IT standards and poor systems integration and equipment. At a very basic level, there is no consistent supply of energy. Undeveloped domestic industry: logistics sector is fragmented and dominated by commoditized and low quality transport and warehousing, unable to meet the growing supply chain demands for industrial and commercial enterprises. High transport costs: almost 50% more than Japan, Europe and North America, mainly due to high tolls on roads. Logistics costs (including warehousing, distribution, inventory holding, order processing, etc.) are estimated to be two to three times the normal. Poor warehousing and storage: high losses, damage and deterioration of stock, especially in the perishables sector. Regional imbalance: of goods flows from the developed east of the country to the more undeveloped west leading to higher costs for haulage companies which are then passed on to their clients. Domestic trade barriers: besides lowered trade barriers such as tariffs and quotas for international shipments, there are still problems such as unofficial border tolls from an inland manufacturing location to a port city or vice versa. Commonwealth of Independent States (CIS) and Eastern Europe Four out of fifteen former Soviet Republics belong to CIS are in Europe: Russia, Ukraine, Belarus, and Moldova. Eastern Europe is made up of Poland, Czechoslovakia, Hungary, Romania, Bulgaria, Serbia, Croatia, Slovenia, Bosnia, Macedonia, Albania, and the Baltic states of Lithuania, Latvia, and Estonia. The countries of Eastern Europe occupy a strategically central position on the continent and are located at Western Europes interface with Russia. As a result of the European Unions enlargement to the east, they are increasingly serving as a bridge. As a result, many manufacturing companies have moved their production facilities to Eastern Europe for cost reasons. Logistics service providers entered either following these companies or to exploit the new markets by carrying out mergers or acquisitions. The opportunities for the companies interested in entering these markets vary significantly from country to country. Although, these countries have relatively well developed transport ne tworks but they do not meet western European standards. Despite the rapid growth of road transports, railroads remain the dominant means of transport. Figure 4: Logistics Hubs in Eastern Europe Source: (DHL Discover Logistics, n.d.-d) The Eastern European logistics market is characterized by wide regional differences. While the Czech Republic, Slovakia, Slovenia, Hungary and Poland have made major strides, Romania, Bulgaria and Croatia are trailing far behind. The infrastructure is in even worse shape farther to the east. The road-based freight transports have limited ability to meet the demands of European industry in a cost effective manner. The causes of these limitations include traffic jams, the limited potential for expanding network capacity, rising energy costs and growing intermodal competition from railways. Eastern European harbours, particularly the major sea ports in Poland, perform a significant amount of trans-shipping and are being increasingly expanded. The European Unions enlargement and the increasing transport volumes have resulted in intensified storage and distribution activities in the countries of Central and Eastern Europe. One of the major challenges is to overcome the barriers that exist between Eastern and Western Europe, including the transport infrastructure. Further, they would like you to advice them on several strategies available to them to enter the above mentioned markets. Discuss all available strategies and give your specific recommendations. (Your answer should not exceed 1500 words) Foreign Market Entry Strategies Foreign market entry strategies are mainly categorized into: Indirect exporting Direct exporting Manufacturing strategies Cooperative strategies Risk and Control in Market Entry Control Risk Risk Indirect Exporting Piggybacking Trading Companies Export Management Companies Domestic Purchasing Cooperative Strategies Joint Ventures Strategic Alliances Direct Exporting Distributors Agents Direct Marketing Franchising Management Contracts Manufacturing Own Subsidiary Acquisition AssemblyFigure 1: Foreign Market Entry Strategies Source: (Doole Lowe, 2001, p.249) Indirect Exporting Piggybacking An established international distribution network of one manufacturer may be used to carry the products of a second company without such a network. The second manufacturer is said to be piggybacking on the first in these cases. The first company has an established reputation and contacts in an international environment. It handles the logistics and administration costs of exporting for the second manufacturer. Piggybacking can offer many advantages to firms; such as cheaper and quick access to new markets, an established knowledge base of the foreign markets and economies of scale with regards to administration, shipping, marketing and distribution. Piggybacking may lead to unsatisfactory marketing arrangements such as lack of strategic fit, providing technical support, and after sales services for buyers potentially leading to disagreement. This method of exporting too is not ideal for building a long-term foreign market presence. Trading Companies A trading company trades on its own account. It performs many functions as; buying and selling as a merchant, handling goods on consignment, or it may act as a commission house for some buyers. Trading companies match sellers with buyers and manage all the supportive functions such as export arrangements, paperwork, transportation, and legislative requirements. Firms initially choose this mode, because of TCs extensive contacts, experience, operations and long-term commercial relationships in many different trading regions in the world. After some experience in the international market, exporting firms want more control over decision making, so TCs are not their long-term partners. Export Management Companies Export Management Companies are specialist companies that act as export department for a number of companies. They provide companies with access to foreign buyers, take orders from those foreign buyers, purchase finished products, and handle the transporting and distribution of the goods in the foreign market. Their core competency is in export logistics and deals with the necessary documentation and extensive knowledge of purchasing practices and government regulations in the foreign markets. This is a less risky and fast penetration strategy suitable for new entrants in the international market in the short-term. Disadvantages of EMCs include; export strategy conflict among both parties, lack of manufacturers control over foreign market decisions and market knowledge. Due to expertise in exporting, the EMC has complete control over all foreign market decisions. In addition, EMC may even export products that are in direct competition with each other. Therefore, manufacturers need to devote resources to monitoring the performance of an EMC and invest in managing the business relationship. As the manufacturers revenue from exporting increases, moving away from the EMC or eliminating EMCs from the business may prove harmful due to lack of foreign buyer contacts or market knowledge or because of contractual agreements. Domestic Purchasing Domestic purchasing is a method of market entry which involves the least company involvement. This export method often involves an unsolicited purchase request from a foreign commercial buyer. The company may not even have considered the export potential of their products until approached from the foreign buyer. In general, companies can use this method to sell off excess stock with the least inconvenience. It generates a relatively low level of revenue and the company is completely dependent on the foreign buyer. The company gains limited knowledge of the international markets, as it has no direct contact with them. The foreign buyer often picks up the goods at the factory gates and proceeds to transport the goods, market them, and distribute them in one or more overseas market. Direct Exporting Distributors Export distributors differ from agents in that they take ownership and responsibility for the goods. Distributors usually take limited rights for the sales and servicing of a particular territory where they represent the manufacturer in all respects. The capital investment can be particularly high for a firm exporting goods requiring specialist handling. Due to this large investment both parties undertake to maintain a long-term relationship. Agents Export agents are usually individuals or firms operating in a foreign market, contracted by the firm, and paid a commission to obtain orders for the product. After entering into a contractual agreement, sales targets are usually agreed with agents by the firms. Agents are usually contracted to carry non-direct competing products therefore providing a lower exposure to risk. Although agents are the cheapest and quickest form of market entry, the long-term profitability is moderate to low with a short payback period. Agents can be beneficial to the company in that they have local market knowledge, established relationships and provide adequate feedback regarding further product or market development strategies. Agents do not owner goods which limits their motivation to improve performance. They can take the form of brokers, manufacturers representatives, managing agents and compradors performing specific functions (Cateora Graham, 2002). Direct Marketing Using database marketing tools such as mail order, telemarketing, media marketing, direct mail and the internet can be a useful technique to expand a firms customer base abroad. Usually, this market entry method is very useful when there are high barriers to entry exist in a foreign market or where markets have insufficient or underdeveloped distribution systems. Success using direct marketing can only be obtained if the standard product/service is customized to meet the personal needs of the target market in different markets. Issues of product promotion and privacy needed to be addressed when engaging in telemarketing, direct mail or Internet commerce. Franchising In franchising, the firm grants the legal right to use branding, trademarks and products, and transfers the method of operation to a third party (the franchisee) in return for a franchise fee. Franchising is less risky and less costly due to the nature of the agreement. The franchisee provides the local market knowledge, capital, time and resources needed to develop the franchise. The two types of franchise agreement used by franchising firms are that of a master franchise and licensing. A master franchise often operates a multi-unit franchising agreement or it may take the form of a trading company whereas in licensing the franchiser uses the property, trademark and intellectual rights for a royalty or fee. Management Contracts Management contracts usually involve selling the skills, expertise and knowledge of firms in an international context. The contracts undertaken are usually those for installing management operating and control systems and the training of local staff to take over when the contractors are finished (Doole Lowe, 2001). Manufacturing Strategies Own Subsidiary This form of market entry requires the maximum commitment in terms of management and resources and offers the fullest means of participating in a market. Before investing huge capital, the firm must evaluate the pros and cons of the business as the cost of withdrawing from the market would be significant. Although sole ownership provides high level of control, the firm may not only incur the costs if withdrawal is eminent but also the companys reputation can be damaged both in the foreign and domestic market. The advantage is of avoiding communication and conflict of interest problems which may occur through other methods like acquisitions and joint ventures. Acquisition Acquisition occurs where an organization develops its resources and competences by taking over another organization. It is a faster entry strategy in new product or market areas. A firm may acquire cost efficiencies, immediate access to a trained labour force, recognized brands, existing customer and supplier contacts, an immediate source of revenue and an established distribution network or otherwise as a result of acquisition. In return, the acquiring company may have to make certain sacrifices. Assembly Assembly involves establishing plants in foreign markets simply to assemble components manufactured in the domestic market by the firm. This method of market entry is attractive for certain companies when they see that the importation of components is subject to lower tariff barriers than assembled goods which eventually decrease their costs. Moreover, it can be more advantageous if the finished product is large and transportation costs are high. The domestic plant in addition, can focus on development and production skills and investment, hence, profiting from economies of scale. Assembly firms also take advantage of lower wage costs and government incentives. Cooperative Strategies Joint Ventures Joint venture (JV) is a market entry option in which the exporter and a domestic company in the target country join together to form a new incorporated company. Both parties provide equity and resources to the JV and share in the management, profits and losses. The JV should be limited to the life of a particular project. This option is popular in countries where there are restrictions on foreign ownership, e.g. China. Its advantages include; acquisition of competencies or skills not available in-house, risk sharing of a large project with other firms, faster market entry/penetration and payback, and avoiding technical trade barriers. Its disadvantages are; divided management control, difficult to recover capital invested, disagreement on new export markets, and different views of partners on expected benefits. Strategic Alliances Strategic alliances are a wide range of cooperative partnerships and joint ventures which unite to follow a set of important, agreed goals while in some way remaining independent subsequent to the formation of an alliance. The partners share both the benefits of the alliance and control over the performance of assigned tasks during the life of the alliance. The partners contribute on a regular basis in one or more key strategic areas, for example, technology or products. Strategic alliances are usually formed in three areas technology, manufacturing and marketing. The main reason behind strategic alliances is competition. Other reasons include; the reduction of risk, the attainment of economies of scale and complementary assets such as a brand name and government procurement. Firms, which employ strategic alliances, have the advantage of simultaneously penetrating several of their key markets. Specific Recommendations The decision of, which foreign market to enter, depends on firms external as well as internal factors and foreign countrys market conditions. The strategy to be adopted should be based on firms short and long-term corporate objectives. Initially, the firm should choose among direct or indirect exporting leading to cooperative and then manufacturing strategies. If exporting is a long-term goal of the firm, then indirect exporting methods may not prove to be the wisest strategic choice. In long-run, the firm has to trade off among costs and control over the decision making. Explain why it is usually more difficult for a firm to provide the same level of customer service in its international markets that it provides in its domestic markets. Under what circumstances may an organization actually be able to provide better customer service to international markets than to domestic markets? (Your answer should not exceed 1250 words) Customer Service When a firm becomes extensively involved in international business, logistics is seen as a critical part of the strategic planning process and a deterministic factor of customer service level. The complexity of the international business environment, including different business customs, inadequate/inappropriate transportation infrastructure, restrictive regulatory frameworks, and different levels of logistics services, presents barriers that make operations in foreign countries far more complicated and less controllable than in domestic markets. Generally, existing or emerging barriers result in longer order cycle times, higher logistics costs, and greater customer dissatisfaction. The customer service level chosen for use internationally is based on expectations encountered in each market. These expectations are dependent on past performance, product desirability; customer sophistication, and the competitive status of the firm and industry. Therefore, additional logistics costs are required to support operations which may be so important that, if not handled properly, they may offset any potential cost savings from using inexpensive labor and other resources in foreign countries. The need for cost-service trade-off analysis becomes inevitable for the managers in such an indifferent situation. Under these circumstances, logistics barriers obviously make it difficult for firms to gain a competitive advantage from their international operations. Table 1 summarizes the firms major external factors affecting its logistic performance (and therefore, customer service) at domestic and global level. It also depicts how difficult it becomes for the firms to provide same level of customer service at international level. Another major external (and therefore, uncontrollable) factor which has made international logistics more vulnerable and complex is security risks after 9/11 terrorist attacks. As a result security clearance procedures have lengthened and transit times of shipments have extended. Insurance rates for cross-border shipments have also climbed. Some factors internal (and therefore, controllable) to the firm, for example, centralized logistics activities, do not make the customer service work best, as it can be under local control in foreign market. Financial aspects such as working capital, inventory, capital investments in buildings and equipments, and accommodation of merchandise are also difficult to manage in the cas e of international operations. The managerial capability of logistics management in deciding optimal cost-service mix plays a major role in determining the customer level. Table 1: External Factors Affecting Customer Service Level Factors Domestic Conditions Global Conditions Culture Homogeneous Heterogeneous Currency Uniform Different currency and exchange rates Economy Stable and uniform May be variable and unpredictable Government Stable May be unstable Labor Skilled workers available Skilled workers may be hard to find Language Generally a single language Different languages and dialects Marketing Many media, few restrictions May be fewer media and more restrictions Transport Several competitive modes May be inadequate Source: (Marilyn Gale, 2006) In order to establish an efficient logistics system to support international operations, especially customer service, a firm should be able to evaluate when and where logistics barriers may disrupt materials flows in the distribution channel. The identification of barriers is important in designing an effective international operations network. A better understanding of those barriers enables a firm to take actions to reduce or avoid them so that it can improve its competitive position in international markets. The firms entering in the international market should obtain as much as possible information about the business conditions and operating expenses of potential markets. As the customer service levels and hence the cost incurred, vary between countries, the firm must examine the service requirements of customers in each foreign market. A flexible and responsive global customer service strategy is based on inventory policy and control procedures, packaging and containerization, sourcing raw materials, managing export shipments and terms of trade. International logistics is characterized by inventory points at more levels between suppliers and customers making it much complicated than at domestic level, leading to longer transportation times. Depending on the length of transit time and more inventory volume needed to cover the resultant delays, the firm can develop inventory policies and control procedures most appropriate for each market area. Another component of customer service is the products physical condition (must be in right condition). Packaging and containerization are important for product handling, climate effects, potential pilferage, communication and language differences, freight rates, and customs duties when a product moves across the borders. The quality of a product is determined by the quality of its raw materials. International sourcing may enable a firm to optimize products quality at lowest possible cost. The services of many facilitator organizations involved in international logistics activities are continuously utilized by almost all of the firms operating internationally. These organizations include export distributors, customs-house brokers, international freight forwarders, trading companies, and non-vessel-operating common carriers (NVOCC). These organizations are highly professionalized in performing their functions and operate at economies of the scale. A firm involved in exporting for the first time would likely utilize the services of a facilitator organization. There are a number of shipment modes/terms, each one of them having its own pros and cons. These terms of trade/shipment used in international logistics are Ex-Works, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU and DDP. Terms of shipment have a major impact on a firms logistics performance as each of them yields a different cost of shipment and value to the customer. Finally, integrated logistics management (ILM) is the ultimate strategy to deal with the international customers efficiently. ILM integrates all the logistics activities; facility location and network design, information management, transportation management, inventory management, warehousing management, material handling, and packaging into a single activity or process of logistics directed towards servicing the customer effectively and at the lowest total cost of all the functional activities taken together. The methodology of integrated logistics conforms to the logistics objectives; getting the right item to the right customer, in the right quantity, in the right condition, at the right place, at the right time and at the right cost. Customer service level of a firm is the representation of managerial capability of its management team. A firms executive management is likely to use any or a combination of some or all of the above mentioned customer service strategies to deliver value