Current Events in Business Research Essay Example for Free

Current Events in Business Research Essay INTRODUCTION There are six basic stages to the research process. Stage 1 is clarifying the research question. This would be the process in identifying the problem that is prompting the research. Stage 2 is proposing research, which would be the act of identifying the resources necessary to do the research. The third stage is designing the research project, or deciding which method to use to gather the information. Stage 4 involves data collection and preparation, which is gathering the data and making it ready to be evaluated. Stage 5 would be the data analysis and interpretation stage. Stage 5 is defining what the data is saying about the problem. The final stage, stage 6 is reporting the results. This is breaking down the interpretation into a presentation that shows the meaning of the data collected. (Cooper Schindler, 2014) This is the process used by Paramount Pictures recently when it was in contract negotiations with the DVD rental company, Redbox. THE DILEMMA As the major Hollywood studios took sides for and against Redbox, Paramount Pictures was staying neutral. The studio had signed a first-of-its-kind trial deal guaranteeing that its titles will be available from the fast-growing $1-a-night DVD rental company through the end of the year. During that time, Paramount would study the effect of Redbox rentals on its total home-entertainment revenue, examining whether there is any decrease in the sales of its DVDs at stores that house Redbox kiosks. Under the terms of the agreement, Paramount would have the option at the end of the year to trigger a five-year deal with Redbox similar to ones recently struck with  competitors Sony Pictures and Lionsgate. The estimated value of the agreement was $575 million. Redbox President Mitch Lowe agreed because Paramount movies performed better at the box office that year. A Paramount agreement would give the studio a share of rental revenue, meaning it could earn more than $575 million if its movies prove popular. Sony and Lionsgate are selling their discs wholesale to Redbox. Though it doesnt have a formal deal with the company, Walt Disney Studios allows its wholesalers to sell discs to Redbox as well. (Fritz, 2009) There has been a lot of debate in the industry about the impact Redbox is having and will have, and we felt the best way to make a decision is by getting the information, said Paramount Vice Chairman Rob Moore. Then we can make an informed decision based on what we will have learned over the next four months. Guaranteed access to Paramount’s movies was important for Redbox. The studio released two of that summers biggest movies, Transformers: Revenge of the Fallen and Star Trek.(Fritz, 2009) A movie that plays well in the theaters tends to do well when it is available to rent. Rental revenue could also provide a much-needed boost to the bottom line of Paramount. Lowe said he was confident that providing detailed data to Paramount would help resolve the heated disputes in Hollywood about his companys effect on the entertainment business. Lowe has previously said his companys research found that DVD sales dropped less than 1% in stores that installed a Redbox kiosk. Many studios do their own analysis that we know is not as reliable and is aimed at coming to the answer they want to hear, he said. We find that when we can form a relationship with a studio and share real data, it results in a positive step forward. Moore said he hadnt reached any definitive conclusions as to what steps he would take if the data showed that Redbox rentals do in fact reduce overall revenue. So, the dilemma that Paramount has is whether or not partnering with Redbox will reduce its sales income more than it will increase its rental revenue. THE PROCESS Paramount and Redbox did the research to determine whether or not rentals available the same day to buy decreased the sales revenue any more or less than those studios who decided to wait 28 days to make them available. Despite some content executives recently having touted the benefits of a  28-day window for DVD titles, Coinstar Inc.’s CEO Paul Davis said the companys own research showed Redbox Automated Retail LLC kiosks have a minimal impact on DVD sales. We did a major study, a little over a year ago, with a major studio and a major retailer and we found that the impact on new product sales as a result of our $1-a-night being out there, day and date, was less than 1%, Redbox worked closely with Paramount, and they did a lot of testing as well, and the fact that they decided to go with day and date (of release) I think speaks volumes.(James, 2010) CONCLUSION After reviewing the data collected by themselves and Redbox in 2009, Paramount Pictures made their decision. In June, 2010, Paramount exercised its option to extend its revenue-sharing license agreement with Redbox, which gives Redbox access to Paramount’s newly released DVDs and Blu-ray titles on the same day they are released in the sell-through market. Paramount’s extended agreement with Redbox runs until the end of 2014, though the studio will had the option to terminate the agreement early at the end of 2011. (James, 2010) As a result of the research, Davis thought that studios that have the 28-day window might opt to tweak their Redbox agreements to get certain DVD titles out for rental sooner. Especially as more and more data gets out there and as the studios that have opted for the 28-day window, as they have a year or so to look at the data, see how its impacted their new product sales it could move that we get some titles earlier, he said.(James, 2010) The process that Paramount and Redbox used, and the data they collected, could prove to be useful data to the other studios as to whether or not they should wait the 28 days. Reference Cooper, D. R., Schindler, P. S. (2014). Business Research Methods (12th ed.). New York, NY: The McGraw-Hill Companies, Inc.. Fritz, B. (2009, Aug 26). COMPANY TOWN; paramount to give redbox a spin. Los Angeles Times Retrieved from http://search.proquest.com/docview/422289074?accountid=458 James, S. B. (2010). Impact of day-and-date redbox rentals on DVD sales less than 1%. SNL Kagan Media Communications Report, Retrieved from http://search.proquest.com/docview/869743836?accountid=458

Impact of Globalization on International Conflicts

Impact of Globalization on International Conflicts Introduction Globalization is a process that relies upon strategies internationally with the aim of expanding business operations on the face of the world. This is with the help of global communications, which have been made possible due to advancements in technology, developments in the political front, socioeconomic, and the environment. Another definition to globalization is cross-border interactions being intensified and countries depending on one another. This definition shades light on how the international system has changed. Relationships have changed in individual states due to depending on one another and whatever events are ongoing outside their boundaries are more likely to have an impact within their territories. In this paper, we shall look at the conflicts and how different nations are embracing globalization to help root out these conflicts, (Holm and SÃ ¸rensen, 1995).[1] Global change is a rapid process and it is hard to keep track of the new and many developments. Nevertheless, trends are observable and they all add up to globalization. Currently, there is a contradiction in globalization being in full force and the global governance processes that are in existence have insufficient power, the scope and an authority, which ensures that a certain direction is followed, as well as regulations that all lead to beneficial results for all parties involved. Thus, more often than not, globalization does not offer equal effects and it is disruptive. New challenges also have rose in institutions (the public ones), which become less autonomous and are weak in their support. The process of globalization is turbulent, as analysts have found out. In addition, it may be touted as representing a rational economy, however, there is a dark side to it. Critics have always brought out the side of globalization that runs soley on economic power. In addition, it favors the western cultures and their corporations, which puts a lot of communities and jobs at risk. Rich countries have an exploitative nature; they harness cheap labor from countries that are poorer. This creates threats to the environment and does not uphold the principles of democracy and/or social stability. This is through plunging political institutions of the nation into unavoidable forces of change in the economy. Moreover, quite a volume of essays highlight that globalization is uneven, (Holm and SÃ ¸rensen, 1995). This can be analyzed in terms of its processes as well as its effects. It results in concentrations and deprivations which, on average, encompass a well defined structure of power. Globalization creates conflicts, which, on one end, focus on cultural issues as well as identity, and on the other, the issues are primarily economic. From historical archives, social change can be closely associated with the ever-rising levels of conflict. Sorokin did a study, which explored this, largely, (1937: 409-475). His study encompassed twelve countries and it showed to what extent what he refers to as social strife was at its greatest in eras when a certain society was involved in a change that was significant (for example, religion). Such a moment of change is transitional and it cannot pass by without it being muddled in conflicts of values and interests. There is also the paradox of reflectivity. Analysts say that increased reflectivity comes from effects of rapid changes. These changes emanate from societies from all over the world. These rapid changes in turn contribute to incidences of conflict. There is also the effect of globalization in terms of identity. Basically, globalization seeks to homogenize people but it is also a fact that it increases social heterogeneity as an awareness. There are quite a number of groups whose identity rests upon race and ethnicity, religion, and language. These groups have used media in a global sense to voice their discontent. At the end of cold war, ethnic revival was unleashed. It goes without saying that cold war was a conflict [2]among states and it propagated the primal need for a national identity in a worldwide society. During the 1990s, this notion was weakened by globalization. It was less effective in ensuring that people complied or being able to integrate a society nationwide. This means that minorities are better off in reasserting their identity in reference to cultural forces of hegemony. These minorities therefore identify the state as not being a reliable promoter and protector of their interests (which are domestic in natu re). They see the state as collaborating more with external forces (Scholte, 1997). Therefore, in the 1990s, we can argue that conflict is not primarily found between and among states, but rather, the state and its groups. In this case, we can comfortably say that globalization has helped root out conflicts between states but resulted in creating conflicts within the state itself. In the economic world, globalization compels businesses to embrace diverse strategies in relation to the new trend of ideas so as to bring on average the rights and interests of a person and the entire community. This makes the businesses have a competitive front in the world. This also gives business leaders, management, and labor a significant change. This is through accepting the contribution of workers and that of the government so that company strategies and policies are developed and implemented. In this case, globalization has reduced conflicts. It enables companies from different countries to share ideas, transact business together, make dealerships, et al. however, it should be noted that some companies may decide to undertake competition. Either way, it is healthy. Businesses will be motivated to embrace new ideas, strategies, and policies. The reduction of risks can be done through diversification. Companies will be involved with financial institutions internationally and thus making partnerships with businesses locally and with other nations. The process of globalization also increases the dire need for knowledge on the differences of culture between countries as well as the culture of the corporate world. Employers from time to time send their experts to other countries so that they can build subsidiaries and/or support the ones that are already in existence, (Beaverstock, 2012). For a successful subsidiary, language skills are fundamental, so are the influences of the sub culture, the styles of communications of which they are different, societal behaviors. This points out to the fact that in terms of economy, globalization does not create a conflict, it deals away with any conflict that is present. In the economic front, there is what Schumpeter refers to as ‘creative destruction’, (1942: 84). Firms are catapulted into innovation because of competition; surely, a firm cannot just look at its competitors embracing new ideas while it is just stagnant. Innovation here involves both products and the process of production. On the other hand, industries and regions can undergo destruction or marginalization. This is because competitors may become more innovative in a certain area and take lead. In an economy, that has become globalized, national boundaries and distances have diminished, (Ake, 1995: 26). This is because the many obstacles have been done away with thus ensuring market access. Cost of transaction has been reduced significantly as well as the time [3]and distance being compressed and this refers to the international transactions. Several changes have been brought about by globalization. They include trade dynamics, flow of capital, and technology transfer. Markets and production present in different countries have made these countries depend on one another. International competition, as said earlier, is increasing in intensity and in turn increases the strategic interactions across the border. This further makes the various business enterprises to organize and structure themselves into transnational networks. Globalization is characterized by increasing interdependence on various levels. For example, foreign direct investment goes hand in hand with technology t ransfer and the knowhow. It also includes the flow of capital, which is in form of international loans, equity, profit repatriation, et al. this facilitates the export of goods and services from countries that are investing. In this case, also, globalization has brought countries together to a united economic front. The aim is to develop interdependent business across different countries. It is due to globalization that we have trade blocs, (Sorensen, 2004). Members in the same block undertake transactions as it were within their national boundaries. However, we can note that the countries outside this trade bloc suffer from what is called trade diversion. This country will not be able to get the benefits the countries within the bloc are getting. It is from this trade ties that conflicts arise. A country may feel sidelined and thus any ties to the countries in the trade bloc may be severed. Conclusion Globalization by definition is a process, which relies on international strategies while aiming to expand businesses globally. The goal of globalization in this case is to give organizations an upper hand in competition through lowering costs, increased number of products as well as services and customers. Globalization has an hand in conflict creation as well as conflict resolution. In the economic arena, globalization has unified various economies and countries. International trade is now a possibility and countries depend on one another. Cross border costs when conducting trade have been lifted and transport and communication between countries conducting trade have been improved. Borrowing of ideas for implementation in other countries has also resulted because of globalization. New businesses have been started in other countries and this is because there are set policies and strategies. In addition, for businesses to be global, knowledge and language skills come in handy to under standing a foreign market and knowing the consumer needs. Globalization also enhances cultural diversity. People from different ethnic groups, big and small, have a worldwide audience for their cultural values and beliefs. Lastly, international trade may be facilitated by globalization, however, due to the emergence of trade blocs, some countries are left out. This is trade diversion and it may create a conflict between countries in a trade bloc and those without. This means, therefore, that globalization increases and reduces conflicts in the international system at the same time. However, the larger part it plays is to reduce conflicts or resolve them. Reference List Ake, C. 1995. The new world order: a view from Africa. In Holm, Hans-Henrik and SÃ ¸rensen, Georg Eds., Whose World Order: Uneven Globalization and the End of the Cold War, Boulder: West view. Beaverstock, J. V. (2012). Highly skilles international labour migration and worldcities:expatriates, executives and entrepreneurs. In B. Derruder, M. Hoyler, P. J. Taylor, F.Witlox, International Handbook of Globalisation and World cities (pp. 240-249). Cheltenham, Uk: Edward Elgar Publication Ltd. Scholte, Jan Aart. 1997. constructions of collective identity in a time of globalisation.http://nexxus.com.cwru.edu/amjdc/papers/76. Schumpeter, Joseph. 1942. Capitalism, socialism and democracy. New York: Harper. Sorensen, G. (2004).The transformation of the state – beyond the myth of retreat;Palgrave Macmillan. Sorokin, P.A. 1937. Social and cultural dynamics, vol III, fluctuations of social relationships, war and revolution. New York: America Books Co. Holm, Hans-Henrik and Georg SÃ ¸rensen. 1995. Introduction: what has changed. In Holm and SÃ ¸rensen, Whose World Order: Uneven Globalization and the End of the Cold War. Boulder: West view. [1] Holm, Hans-Henrik and Georg SÃ ¸rensen. 1995. Introduction: what has changed. In Holm and SÃ ¸rensen, Whose World Order: Uneven Globalization and the End of the Cold War. Boulder: West view. [2] Sorokin, P.A. 1937. Social and cultural dynamics, Vol. III, fluctuations of social relationships, war and revolution. New York: America Books Co. Scholte, Jan Aart. 1997. Constructions of collective identity in a time of globalization.http://nexxus.com.cwru.edu/amjdc/papers/76. [3] Sorensen, G. (2004).The transformation of the state – beyond the myth of retreat;Palgrave Macmillan

Effect Of Work Stress In Maruti Suzuki Commerce Essay

Effect Of Work Stress In Maruti Suzuki Commerce Essay Introduction to Maruti Suzuki Ltd. Maruti Suzuki India Ltd. is a leading manufacturer automobile company in India. It was established in December 1983 with the mission to motorise India. Maruti was Collaboration Company between Suzuki Motors Corporation, Japan and Government of India. Maruti is one of the largest compact car manufacturing companies in the world so till 2012. In terms of production, Maruti is the largest subsidiary of Suzuki Motor Corporation and the company has produced over 15 million vehicles since the roll out of its first vehicle on 14th December, 1983. In the employment sector, Maruti has more than 75000 employees and its manufacturing facilities are located at two locations in India in Gurgaon and Manesae, both south of New Delhi. Maruti Suzuki is the only Indian company to cross the 10 million sales mark since its origin. In 2011-12, the company sold over 1.13 million vehicles including 1, 27,379 units of exports.(Marutisuzuki 2012) Marutis Philosophy   Marutis uses its Green Philosophy in the stems of Three Rs: Reduce, Recycle and Reuse policy in its plants, so that there is a minimal stress on natural resources. The company has launched a number of initiatives under its Three Rs umbrella to make the plants more efficient in terms of resource usage. It is also certified with ISO 14001:1996 for its Environment Management System programme and uses the principle of Smaller, fewer lighter, shorter and neater for its operations. Problems in Maruti Company: According to workers who are employed at Maruti Suzuki, highly stressful working hours have been a major concern for the stress of the employees who are working in the Maruti Suzuki. According to the workers, the stressful working hours leads the works to prolonged impasse. Excessive of work load and stringent time management is the major cause of the stress for the workers. There are several reasons for the cause of the work stress for the employees. In the several reasons the major seven reasons for the work stress are,(Cherry 2012, Sengupta 2012) 7 Reason for Work Stress Differences in salary pay No allowance Job insecurity Lack of promotion prospects Under-promotion or over-promotion Unclear or unfair performance evaluation systems Being over-skilled or under-skilled for the job Differences in Salary Pay The first reason for the work stress for the employees is mainly due to the difference in the salary pay. Mostly about 70% of the employees are contract based employees and they paid very less salary when compared to the other workers who are working in the same grade as conformed workers. No allowance Since most of the employees are contract based employees the company has not provide them with any allowance. Hence they didnt get any allowance from the government as well from the company. Job insecurity As contract based employment there is no security for the employees for their job. They can be fired at any moment. This is also a reason for the employees for their stress. Lack of promotion prospects As a contract based employee, there is no promotion prospects for them. Employees need to do the work what the work is assigned for them. This is also a reason for the employees for their stress. Under-promotion or over-promotion Since there is no proper evaluation system or performance appraisal system for the promotion, Employees are promoted in a basis of their influence to the managers. This leads to other workers for the stress in their working. Unclear or unfair performance evaluation systems As said before there is no proper evaluation system for the performance. And this leads to unclear promotion to the employees. So it leads to stress for the workers. Being over-skilled or under-skilled for the job As most of the employees are contract based employees, and hence the position what they are working being an irrelevant position. For example an employee who Mechanical Engineering and working in the finance department. So most of the employees are being like under skilled or over skilled for the jobs, so this also leads to stress for the employees in their working.(Sengupta 2012) Maslows Hierarchy of Needs Maslows hierarchy of needs is a theory proposed by Abraham Maslow in his paper A Theory of Human Motivation in the year 1943. Maslow mainly used the terms like Physiological needs, Safety, Belongingness and Love, Esteem and Self Actualization needs to describe his human motivation theory. http://upload.wikimedia.org/wikipedia/commons/thumb/6/60/Maslow%27s_Hierarchy_of_Needs.svg/450px-Maslow%27s_Hierarchy_of_Needs.svg.png Hierarchy Maslows hierarchy of needs can be explained with the help of a pyramid. The most fundamental level of needs is specified at the bottom and at the top needs for self-actualization. Maslow explains the pyramid with four layers and he called them as Deficiency needs or D-Needs. The four layers are Esteem, Friendship and love, Security and Physical needs. He also explains that the most fundamental needs may not be the physical needs. Maslow also use the term Meta motivation in order to motivate the people. He also explains that human mind have the ability for parallel processing and thus by motivating the people also they can achieve their hierarchal needs. Thus Maslow acknowledged the likelihood that the different levels of motivation could occur at any time in the human mind, but he focused on identifying the basic types of motivation and the order in which they should be met.(Cherry 2012) Physiological needs Physiological needs are the physical requirements for human survival. If any of these requirements ate not obtained then the human mind wont function properly and this leads to ultimate failure. Therefore food, shelter, love and respect are some of the basic physiological needs that a human normally expects to be with him.(Cherry 2012) Safety needs The safety needs in the sense job security, secure environment, procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, etc..(Cherry 2012) Safety and Security needs include: Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts Love and belonging After physiological and safety needs the next basic need for a human is the love and belongings. This need is especially strong in childhood and this can be obtained by friendship, family and others love towards him. Maslow explains that humans need to feel a sense of belonging that they are accepted in their social group. For example small social group like family in which they are being accepted and they are recognised in the group.(Cherry 2012) Esteem All humans have a need have a feel that they need to be recognised in the society and they need to have their own respect. The fame or glory will not help anyone to get their respect they need to have their own self-esteem in order to be respected. Maslow states that while he originally thought the needs of humans had strict guidelines, the hierarchies are interrelated rather than sharply separated. This means that esteem and the subsequent levels are not strictly separated; instead, the levels are closely related.(Cherry 2012) Self-actualization What a man can be, he must be. This quotation explains the need for self-actualization. Maslow explains that everyone should have their own self-actualization in order to become the most that one can be. For example women may think that she needs to be the best mother for her children than any other mother. In understand this level of need, the person must needs to achieve the previous needs and also should be master in them.(Cherry 2012) Self-transcendence Self-transcendence refers to when a person seeks to further the boundaries of their ideal self, to experience an intimacy beyond ones self. Cloninger later incorporated self-transcendence as a spiritual dimension of personality in the Temperament and Character Inventory.(Cherry 2012) F. W. Taylors Scientific Management Theory F. W. Taylor was an American mechanical engineer completed his degree in Mechanical Engineering from Stevens Institute of Technology in 1883. He is well known as the father of scientific management. Taylors Contribution to Scientific Management F.W. Taylor has written the famous book called Principles of Scientific Management in which he mainly imposes three principles, they are First: To explain through simple illustration. Second: To convince the reader through systematic management, rather than explaining some unusual contents. Third: To prove that the management skills are true science. And also he explains that the fundamental principles of scientific management which can be applied for all human activities. For example a simple co-operation between the individuals in the company can raise the production value of the business. And also he convince the readers be simple illustration by correctly applying all his principles.(Taylor 1911) Taylor has defined scientific management as follows: Scientific management is concerned with knowing exactly what you want men to do and then see in that they do it in the best and cheapest way.(Taylor 1911) Principles of Scientific Management The principles of Scientific Management are: 1. Replacing rule of thumb with science. 2. Obtaining harmony in group action rather than discord. 3. Co-operation rather than chaotic individualism. 4. Increase in production and productivity instead of restricted production. 5. Development of workers by providing training. Result of Work Stress As a result of the work stress two major problems occurred in the Maruti. Low Production No Co-operation between the employer and employee Low Production Due to work stress for the employees, their hundred percent inputs for the work were not able to obtain and as a result it leads to less production. Most of the assembly line workers had much stressful work continuously and they are not paid for their work they intently produced less production. As these are the reasons for the less production. No Co-operation between the employer and employee Due to the improper management there was no proper co-operation between the employers and the employees. As the company has not followed any hierarchy structure and most of the employees are contract based employees there was no proper relationship between the employer and the employees. This is also a reason for less production. There two are the major cause as a result of the work stress for the employees in the Maruti Suzuki. Basic Need of the Workers By studying the two major theories, Maslows hierarchy of needs and F. W. Taylors Scientific Management we can suggest some solutions for the problems of the employees in the Maruti Suzuki. According to the two theories basic needs for the employees are (Taylor 1911, Cherry 2012) Permanent Job Proper Work Timing Promotion Transport Facilities Permanent job As about 70% of the employees in the Maruti Suzuki are contract based employees and they dont have the job security is also one of the reasons for the work stress for the employees. And the work stress leads to less production for the company. According to Maslows hierarchy of needs when we provide the employees with the basic needs of what they need they fell secure for working for the company. They get motivated automatically and they fell much secure and automatically reduce the work stress. As a result of less work stress, the employees may give their much effort for the production and hence the production can be increased considerably. Proper Work time Since most of the employees are contract based employees and hence they dont have the proper work timing schedule. And so it leads them to work for more hours. This is also a reason for the work stress for the employees. According to the Maslows hierarchy of needs and F. W. Taylors Scientific Management providing the employees with their basic needs and make them esteem will increase the confidence level for the employees. As a result of the providing proper work time their stress for the working hours will reduce and hence the production can be increased considerably. Promotion As most of the employees in the company are contract based employees and they dont have the promotion prospective. Since working continuously, without any promotion, or incentive makes many employees to feel stress about their work. According to Maslows hierarchy of needs and F. W. Taylors Scientific Management if we make the employees to feel much secure about the work what they do and provide the employees with the hierarchy for the promotion will make them to feel much secure and their work stress will be reduced considerably. And hence the production will be increased automatically. Transport Facilities Since most of the large scale sector industries are located at remote locations, transport facilities to the company being a very complex issues for many employees in the company. According to Maslows theory, proving the employees with their need many reduce the stress for the employee and as a result the production can be increased considerably. So providing transport facilities from the employees from the company to the city center during the shift end and the beginning may reduce the complexity for the transportation to the employees. Implementation By studying the theories of Maslows hierarchy of needs and F. W. Taylors Scientific Management and the problems of the Maruti Suzuki, we can implement some solutions for the problems of the Maruti Suzuki based on the two theories.(Taylor. 2007, Taylor 1911, Cherry 2012) Implement Hierarchy structure for promotion and work allocation. As there was no proper management structure for the company for the promotion and other perspectives if we implement the Maslows hierarchy structure for the employment as the low level workers being in the bottom followed by the supervisors and managers and in the top level there being the management. By implementing Maslows hierarchy structure, the work load can be allocated and hence each worker will equal amount of works. Implement Proper Work Timing with three different shifts. According to Maslows hierarchy of needs providing the employees with their basic physiological needs the workers will fell much secure to work in the company. According to the theory implementing proper work timing with three different shifts which may reduce the workers to work for ling hours and hence their basic physiological needs get satisfied and the employees feel much secure in working for the company. Provide bus services in line with shift timings According to Maslows theory, providing the employees with their physiological needs may reduce the stress of the employees, According to which providing bus services to the employees in line with shift timing may reduce the stress in transportation to the employees. As most of the large scale industries are located in remote locations, so transportation being one of the major stressful tasks for the employees to make in time for the companies. By providing bus services may reduce their stress in transportation. Create a labor welfare committee to promote good relations between the management and the workers According to F. W. Taylors Scientific Management providing proper training to the employer and employees can create a three sixty degree relationship between them. According to Taylors theory creating a labour welfare committee provide a good relationship between the management and workers. Conclusion After studying the problems of the Maruti Suzuki and the theories of Maslows hierarchy of needs and F. W. Taylors Scientific Management the problems of the Maruti Suzuki have been solved by implementing the solutions to the problem from the theories of Maslows hierarchy of needs and F. W. Taylors Scientific Management. The major problem of the employees being the work stress have been solved by the Maslows hierarchal theory and the major problem for the management being the less production which have been solved by implementing F. W. Taylors Scientific Management theory.

The Study of Personality and Time Perception Essay -- Psychology

There have been many studies in the past which have investigated the effect of personality on our mental abilities. For instance Hannon et al. (1995) conducted research into the effect of extraversion and introversion on long term and short term forthcoming memory. Results show extroverts came up with less errors in comparison to introverts in regards to short and long term memory. In this present study we aim to investigate the effects of extraversion and introversion on time perception. With the directional hypothesis suggesting there will be a negative correlation between extraversion and time perception, it is later noted that this isn't the case, resulting in the hypothesis being rejected. It would be safe to say that further research into personality and time perception is required. Introduction: The study of personality and time perception is a captivating strong point for psychology, as it proves just how important psychology is in understanding the human mind. Despite the infinite attributions of these topics a lot of research has been carried out into these areas. The personality has had its fair share of attention in the world of Psychology world, and Hans Eysenck is definitely someone who has made contributions to what we know when understanding the personality. Eysenck came up with a theory for the personality, in which he used factor analysis to structure his beliefs.His theory is made of up of three core personality dimensions: Psychoticism, Neuroticism and Extraversion (Eysenck, 1970; Eynsenck and Eysenck, 1985, cited in Martin, Carlson, Buskist, 2009). These bipolar factors all have their opposites. Where Psychoticism is the opposite to self control, Extraversion is the opposite to Introversion, and Neurot... ...ing, and they had to stay silent at all times. When a participant thought the time was up they would have to then raise their hand, one of the timekeepers would then come over and give them a little tap on their shoulder, and note down the time it took them to raise their hand (each timekeeper was assigned to a section of the class, for monitoring purposes). If participants got to 6 minutes without raising their hand the experimenter would stop the study. After this the experimenter sat all the participants down and got them to look back at the questionnaires. Works Cited Burger, J. (2000) Personality (Fifth Edition) London: Wandsworth Martin, G. Neil, Carlson, Neil R., Buskist, W. (2010). Psychology (4th Edition). Harlow: Pearson Pervin, L., Cervone, D., John, O. (2005) Personality theory ans Research (Ninth Edition) Hoboken, N.J: John Wiley & Sons

Virtuosity in Othello :: Literary Analysis, Shakespeare,

The character Desdemona in William Shakespeare’s play Othello holds on to her dignified behavior until the very end, when her life is taken by her jealous husband, is indicative not only of her chaste mind, but also of her virtuous fortitude. Women of that time were largely seen mostly one of two extremes – either virtuous or licentious. Desdemona’s strength as a virtuous woman are clearly illustrated in two pivotal scenes in Shakespeare’s play: in her poise when confronted with her husband’s collapse of his gentlemanly facade; and in the dignified way she faces her own demise head-on, feeble on affirmations, yet overflowing with grace. In Act 4, Scene 2, Desdemona proves herself as a lady in her discussion with the evil Iago, who, unbeknownst to her, is the cause of her chagrin. Although she bewails that Othello has called her a whore, she herself does not stoop to insults. Proudly, she declares, â€Å"Unkindness may do much† and, in a moment of disturbing foreshadowing, states â€Å"And his unkindness may defeat my life† (IV.ii. 164-65). Though virtuous to a fault, she remains dignified and affirms, â€Å"I cannot even say ‘whore.’ / It does abhor me now I speak the word; / To do the act that might the addition earn / Not the world’s mass of vanity could make me† (166-69). During the tragic conclusion of the play, in Act 5 scene 2, Othello suffocates his adored Desdemona in the erroneous belief of her infidelity. She nevertheless departs with dignity. She does not wail but instead she merely states: â€Å"O, falsely, falsely murdered!† (130). One is left to wonder if she is referring to herself or to Cassio; regardless, these words are simply matter-of-fact and are not the emotion-driven cries one would normally expect from a person facing her own execution. Through her dying breath, Desdemona states clearly, â€Å"A guiltless death I die† (136). Her mistress Emilia, obviously overcome with emotion, pleads to Desdemona to name the killer, crying, â€Å"Help! Help, ho! Help! O lady, speak again!† (134) and â€Å"O, who hath done this deed?† (137). With a quiet composure on her deathbed, Desdemona cryptically tells Emilia, â€Å"Nobody—I myself. Farewell† (138). Was she a self-loving character who had the ability to love others unconditionally? Or was she a fool who accepted her worldly fate in the belief that, by doing so, she was being righteous? Othello appears to be more of a weak character to succumb to misguided vanity and jealousy than Desdemona in meeting her own end with dignity.

Psychology Essays -- Wundt, Descartes, Watson

Psychology is the investigation of the mind and how it processes and directs our thoughts, actions and conceptions. However, in 1879 Wilhelm Wundt opened the first psychology laboratory at the University of Leipzig in Germany. Nevertheless, the origins of psychology go all the way back thousands of years starting with the early Greeks. This foundation is closely connected to biology and philosophy; and especially the subfields of physiology which is the study of the roles of living things and epistemology, which is the study of comprehension and how we understand what we have learned. The connection to physiology and epistemology is often viewed as psychology, which is the hybrid offspring of those two fields of investigation. It was not until the later part of the 19th century that psychology would emerge as a science. Rene Descartes, a famous French philosopher, contributed a major work to the development of psychology. Descartes presented his theory of dualism as a response to the body and mind conflict between scholars (Schultz & Schultz, 2008). According to Descartes, humans are made up of two dimensions: body and mind. Before the body mind concept, it was believed that humans thought with their souls (Wozniak, 1995). Descartes also believed that humans had tendencies of a mechanism but are different from animals because of the ability to think and reason. His perception of humans led to the theory of dualism. The dualism theory contended that the humans mind is a separate function form the body. However, the mind and soul work in unison in the brain, through the pineal gland to create human behavior. The mind was considered to develop and use innate ideas and derived ideas. Essentially, Descartes ca me to the conclusion tha... ...nd getting the information when necessary. A significant thought is information processing, which takes place in a sequence of steps. The information processing theorist’s method of learning is primarily by way of the study of memory. Presently, because of the hybrid heritage, psychology is not thought over as one of the social sciences such as sociology, economic science, government science, and cultural anthropology. Psychology is viewed as an ally to the natural sciences such as biology, chemistry, laws of nature, and mathematics (Thornton, 2009). Psychology is also seen as humanities, which are philosophy, human speeches, music and art. Most psychologists join forces on research and other conceptions with intellectuals and scientists in distinctive fields. This adds to the diversity of interests, which can be seen in the modern psychology department. Psychology Essays -- Wundt, Descartes, Watson Psychology is the investigation of the mind and how it processes and directs our thoughts, actions and conceptions. However, in 1879 Wilhelm Wundt opened the first psychology laboratory at the University of Leipzig in Germany. Nevertheless, the origins of psychology go all the way back thousands of years starting with the early Greeks. This foundation is closely connected to biology and philosophy; and especially the subfields of physiology which is the study of the roles of living things and epistemology, which is the study of comprehension and how we understand what we have learned. The connection to physiology and epistemology is often viewed as psychology, which is the hybrid offspring of those two fields of investigation. It was not until the later part of the 19th century that psychology would emerge as a science. Rene Descartes, a famous French philosopher, contributed a major work to the development of psychology. Descartes presented his theory of dualism as a response to the body and mind conflict between scholars (Schultz & Schultz, 2008). According to Descartes, humans are made up of two dimensions: body and mind. Before the body mind concept, it was believed that humans thought with their souls (Wozniak, 1995). Descartes also believed that humans had tendencies of a mechanism but are different from animals because of the ability to think and reason. His perception of humans led to the theory of dualism. The dualism theory contended that the humans mind is a separate function form the body. However, the mind and soul work in unison in the brain, through the pineal gland to create human behavior. The mind was considered to develop and use innate ideas and derived ideas. Essentially, Descartes ca me to the conclusion tha... ...nd getting the information when necessary. A significant thought is information processing, which takes place in a sequence of steps. The information processing theorist’s method of learning is primarily by way of the study of memory. Presently, because of the hybrid heritage, psychology is not thought over as one of the social sciences such as sociology, economic science, government science, and cultural anthropology. Psychology is viewed as an ally to the natural sciences such as biology, chemistry, laws of nature, and mathematics (Thornton, 2009). Psychology is also seen as humanities, which are philosophy, human speeches, music and art. Most psychologists join forces on research and other conceptions with intellectuals and scientists in distinctive fields. This adds to the diversity of interests, which can be seen in the modern psychology department.

Cisco’s Strategy in Recessionary Times Essay

Executive Summary This report is an examination into the strategic management practices used by Cisco Systems, Inc., over the dot com bubble from 1997 to 2000 and an overview of Cisco as a company, and its acquisitions over the past 20 years. The report was created by Alex Quigley, Eoin McCrann and Daniel Ozac, as part of a continuous assessment deliverable as part of BSHCE3, Hons Degree in  computing at the National College of Ireland. It is supported by a PowerPoint presentation of the same name, in the attached appendix. Introduction The report will first review the literature used during the research of the topic and outline the types of information resources used during the reports generation and an overview of these findings. There is an attached overview of Cisco as a company (Appendix A) which outlines how it was founded, and its current market position, and a brief history. Next, we will take a high level overview of their strategy and then identify the key strategic tools used by the company and how they differed at the time from their competitors in this regard. Next we will look in detail at Cisco’s acquisitions over the past 20 years since the company formed, and how this particular strategy was affected by the crash. After this we will look at Cisco’s financials and how their strategy has enabled such large growth. The importance of their strategic choices in developing this financial growth, and finally some of the possible risks associated with the key strategic tools used by the company during this period. Finally, a conclusion and summary of our findings and an appendix for the resource references used during the research, and an appendix of financial information. Literature Review  From the outset the base for all our research started with the case study (Indu, 2010). This gave us a very good overview of the company and how it has, over the past 20 years, faced great triumph in the face of adversity, and bounced back, particularly after difficult times throughout the company’s history In particular during recessionary times such as the dot com crash and the recent global economic downturn. The course notes from BSHCE3 Strategic Management were used to identify the key strategic management tools. Wikipedia was also liberally used to identify and further expand on some of these tools, their founders and also  as a high level overview of Cisco as a company. Other online resources that proved very informative during research were CNN and in particular the money section of the website which maintains detailed information on a large number of companies, and the NASDAQ website which also maintains (as expected) detailed stock and financial information. It’s also worth mentioning that Cisco’s own website is very informative, with detailed financial and organizational structure. Strategic Overview From the case study delivered during class (Indu, 2010) it is clear that Cisco’s goal was to increase market share and maintain a sustained growth. Added to this continued improvement to customer and supplier relations. The company’s current mission statement states that; ‘Cisco’s mission is to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners.’ (Cisco.com) With a strong customer focus at the core of their business, another strategy employed by Cisco is to position themselves close to not only the customer but suppliers too. This closeness and strength of supplier relations allows Cisco to respond quickly to changing customer and in fact market demands and trends. One of the strategic applications to enable growth and innovation was the use of acquisitions. From 1993 to present day Cisco has acquired over 150 companies in a wide range of Information Technology and Networking sectors. This is facilitating gaining and maintaining competitive advantage. However, proving the strength of the management and effective adaptation, Cisco has been able to change their strategy when required and in 2000, after the dot com bubble burst, its highly successful strategy of procurement was abandoned and under the leadership of John Chambers, the  company was able to successfully tighten its purse string, downsize the business and successfully ride out the storm. This leads to another strategy employed by Cisco, and one that has not been helped employee relations, the choice to downsize during periods of economic or market downturn. This retrenchment again shows Cisco’s effective adaptation, but has led to issues with morale among employees. Ciscos core business is networks, communication and information technology. So it is no surprise that in parallel to providing companies with the tools and information systems seen as ‘strategically important’, they themselves view these systems as paramount to the company’s success. Examples of this are the ‘bug alert’ system implemented in 93 and even earlier, the FTP site a database to allow customers and developers improve existing components and systems. One defining factor in all Cisco’s strategic choices has been to stick to the knitting. As Peter Drucker stated; ‘Think through the overall mission of a business, and ask the question: What is our business?’ In Cisco’s case, their business through numerous acquisitions and strategic changes has essentially remained the same. Chambers believed that there are 4 key elements that a company needs in order to survive a recession; 1. Being realistic about the CAUSE of your challenges – don’t just blame a recession, focus internally as well, is there something you’re doing as well? 2. Try to determine the length and intensity of the downturn – then respond appropriately 3. Prepare for the upturn – Survive and thrive, gain market share 4. Expand customer relationships – customers can give insight into when the recession may end And this isn’t always the best strategy, as it does not allow for innovation internally within the organisation. The lack of intrapreneurship has led to poor company ratings in terms of ‘great place to work’ scores. In order for Cisco to get new products or enter into a new market, they generally have to purchase a new company rather than use organic growth or in-house smarts. Their competitors on the other hand employ strategies of organic growth and are less inclined to purchase companies in order to gain entry into different markets. However there have been some key acquisitions that allowed direct competition to Cisco, which will be discussed in more detail in the next section. Cisco through every recession have maintained large assets and cash. They saw it as vital in order to survive. This allowed them to make bold decisions when most companies are cutting back, and also respond immediately when the market begins to pick up again. Something competitors have had difficulty with. Acquisition Timeline As stated previously, Cisco’s core business has been a factor in the type of businesses acquired over the company’s history. From 1993 to 2000, there was a sustained level of acquisition, increasing year on year. During this time Cisco has acquired over 150 companies, most of which were US based. Figure [ 1 ]| However, it’s clear from ‘Figure 1’ above that after the crash in 2000, Cisco drastically decreased acquisitions with only one acquisition in 2001. In the two years previous to this Cisco had acquired an amazing total of 40 companies. And once again in 2008 the company slowed acquisitions to match the downturn in demand for their products. Although not as drastically as 2001. They used these times to focus on new emerging markets, and develop new technologies. Figure [ 2 ]| Most of these businesses were related to the area of Computer Networking, Lan Switching, Gateways and Routers. This is in keeping with Cisco’s strategy of ‘stick to the knitting’. Second to these is the VOIP technology sector. By 2004, Cisco had returned to its acquisition strategy and sustains this level for a number of years. What is interesting is if you map the NASDAQ composite index, which is heavily populated with IT related companies; it almost perfectly matches the acquisition timeline for Cisco, as can be seen  in ‘Figure 3’ below. Figure [ 3 ]| Cisco didn’t just acquire the companies and integrate the management of them into their own structure. For the most part these companies were allowed to continue as individual entities, and keep their existing structure and organisational managers. Competitors Acquisitions Hewlett Packard One of Cisco’s competitors is HP, the computer hardware and software giant. In 2008, HP acquired Colubris Networks. Colubris Networks provide organizations with advanced wireless networking solutions that unify and integrate with existing network infrastructures, as well as security and management systems. This was an attempt by HP to try and take market share of Cisco’s strong hold on network infrastructure, and in this case the wireless LAN market. In 2009, HP purchased 3COM, the digital electronics manufacturer best known for its computer network infrastructure products, for $2.7 billion. This was a huge strategic move from HP to strengthen their position in the market which Cisco has been controlling. HP realized there were large gaps in its product line, mainly network switching, which would take too long to fill organically and needed a quick-fix. HP wanted to take on Cisco in this sector, and 3Com wanted to expand outside of China. This acquisition meant the Introduction of low-cost switches, which was a competitive advantage that Cisco was unable to match. Juniper Networks Another of Cisco’s direct competitors, Juniper networks, a networking equipment manufacturer based in Sunnyvale, California. In contrast, Juniper had no acquisitions between 2006 and 2009, and instead focused all their efforts on internal innovation and organic growth. However in 2010 they acquired Ankeena Networks for $100 million. This was a  move to directly compete against CSICO’s video conferencing market position. Ankeena Networks deliver new media infrastructure technology, and their technology is designed to help service providers deliver a better video experience on both fixed and mobile devices. Also in 2010, Juniper purchased Blackwave Networks in order to support Ankeena networks. Blackwave networks key business is to provide video storage and delivery. Both of these purchases were seen as Juniper bulking-up its video delivery capabilities in order to take on Cisco in this area. Polycom As with Juniper acquisitions in 2010, Polycom’s core business is in the area of video conferencing and in particular Telepresence and supporting infrastructure equipment. Between 2008 and 2010 they did not acquire any companies. In 2011 they acquired HP Visual Collaboration, a network and video management company for $89m. This move was in response to Cisco’s hostile $3.3bln takeover of Tandberg. The purchase was to strengthen Polycom’s position and ensure that they are strong enough to compete with Cisco. Strategic Tools A number of tools exist to assist organisations in developing strategies and insight on what industries and areas their business should focus on. Some of these are outlined below. SWOT Analysis A planning method used to determine the internal factors: strengths, and weaknesses, as well as the external factors: opportunities and threats, facing a project or organisation. The SWOT analysis helps project managers or organisations with the decision-making process. It is especially useful when considering entry into a new market, or when releasing a new product. It can be used to develop a strategy to help distinguish your organisation from your competitors. Porter’s 5 Forces A technique used to determine the intensity of competition within your market. The five forces are: threat of new entrants, threat of substitute products, and bargaining power of suppliers, bargaining power of buyers and the intensity of competitive rivalry. It is used to show the relative attractiveness of a particular market, and as such helps with the decision-making process for project managers and organisations. PEST Market Analysis Tool A tool used to help understand market growth or decline. PEST is an acronym for Political/Legal, Economic, Socio-Cultural, and Technological. Like SWOT and Porter’s 5 Forces, PEST is used to analyse or review a strategy or position at a given time and then help with the decision-making process. Other Other tools include Management by Objectives (MBO), TOWS Matrix, Internal Analysis, Value Chain and BCG Portfolio Model, but for this report we will focus on the three tools above, and how they relate to Ciscos management strategy. Strategic Tools on Cisco SWOT Analysis The SWOT analysis outlines internal strengths and weaknesses and external opportunities and threats. Strengths  In terms of internal strengths, Cisco is in a very good market position for its main core products (networking equipment) and is seen as the market leader in this area. Cisco has number of alliances with major players in the market, including Microsoft and IBM. Cisco also maintains a very strong balance sheet every year, ensuring a large supply of cash is available. Weaknesses Conversely, its main weakness is the high cost of its products, when compared to its competitors (e.g. HP and their low-cost range of network switches). This is not a major problem for Cisco however, as their focus is on reliability and customer satisfaction, not beating prices with competitors. Other weaknesses include the lack of a presence in the consumer market and the lack of innovation. Cisco’s growth and new product line comes from acquisitions rather than internal innovation and organic development. Opportunities Opportunities in the market include cloud computing, smart-grid technology, the home consumer market and the area of video conferencing thanks to its acquisition of Tandberg. Threats  The main external threat to Cisco is the unstable global economy. Chambers was initially very optimistic about the economic recovery; however he has recently toned-down his statements and has admitted that recovery may take longer than initially expected. Other threats include cheaper alternatives and their direct competitors: Hewlett-Packard, Juniper and IBM. Figure [ 4 ]| Porter’s 5 Forces Porter’s 5 Forces model helps to determine the level of a number of factors. Once established, this helps to determine the relative attractiveness of a particular market or sector. Threat of New Entrants: MEDIUM Large enterprises will generally only enter the market by acquiring specialist companies, and small companies will not really be able to compete due to the infrastructure and resources required. Any small, successful start-up will generally be acquisitioned by a larger one. Because of these factors the threat of new entrants into Cisco’s core market (design and manufacture of networking equipment) is medium. Bargaining Power of Suppliers: LOW Cisco generally uses short-term contracts with its suppliers. This allows them to easily adjust their output depending on supply and demand. Cisco also uses a multitude of different suppliers across the globe. Their main focus is on reliability and customer satisfaction rather than competing on price. For these reasons the suppliers have a low level of bargaining power. Bargaining Power of Buyers: HIGH In terms of networking equipment and video conferencing facilities, there are a wide range of suppliers for customers to choose from. These include Hewlett-Packard, Juniper, and Polycom. There are also cheaper alternatives in the market. This gives the customers much more bargaining power. Threat of Substitute Products: LOW Organisations rely on networking equipment such as hubs, switches and routers. They are vital to networks and will not be replaced by substitute products. Therefore the threat to Cisco is low. Intensity of Competitive Rivalry: HIGH The sector is very competitive with HP and Juniper seen as Cisco’s main rivals. Cisco’s entry into the videoconferencing and Telepresence market has increased this rivalry. Cisco is still seen as the market leader. PEST Market Analysis This market analysis used to help understand market growth or decline and help to influence the decision-making process. Political & Legal  Political and legal considerations for Cisco include regulations regarding customer and employee data privacy and security. Given the market they operate in, their products need to adhere to many different standards and certifications. These include ISO, IEEE, IETF, ITU and Wi-Fi Alliance. As Cisco is an international organisation operating in many different countries across the globe, they must be aware of differing national laws and regulations. A major strategy of theirs is the acquisition of other organisations. They must therefore be aware of the laws and regulations governing this process in different countries and continents, e.g. the acquisition of TV software developer NDS had to be approved by the European Commission. Economic The current economic outlook is poor, with low growth and uncertainty about when it will end. There are high unemployment rates across the globe, low inflation rates and increased labour costs. Current rates of interest are also important. These are all factors that Cisco will consider with any new  venture. Socio-Cultural Demographics, language, culture, customs and religion are not really a huge concern for Cisco. One socio-cultural issue that may relate to them is the current trend of technical people leaning more towards open-source software and hardware products. This may have a negative impact on some areas that Cisco operates in, as Cisco IOS is closed-source. However Cisco does work with over 40 open source software projects. Another area that Cisco will consider is the green and renewable energy sectors. Cisco’s recycling and emissions and energy consumption reduction programs have worked well and even resulted in them becoming certified. Cisco is also one of the driving forces behind making purchases from women, veteran and minority-owned companies. Technological Cisco spends nearly $5.3 billion on research and development per year, ensuring that they stay at the cutting-edge of technology. In terms of innovation Cisco generally â€Å"stick to the knitting†, i.e. they stick to their core competencies and acquisition other organisations when moving into new areas. Areas of technological growth include video and teleconferencing, telepresence, unified communication, big-data, cloud computing and smart grid (overlaying a digital network onto the existing electrical network). Figure [ 5 ]| Financial Overview Looking at Cisco’s finances provides and insight into invest psychology. Going back to 1993 (Figure 6) we can see that Cisco had strong earnings growth. Cisco really suffered during the recession in 2001 as they were unable to predict economic downturn and net sales fell by almost 30 per cent. Chambers was forced to write off inventory of $2.2 billion, and 8,500 people were made redundant. Figure [ 6 ]| Reorganisation The reorganisation of its operations after the crisis in 2001 was followed by  strong growth. By looking at the Cisco’s last year’s financial statements (Figure 7) we observe that their bottom line, in other words, Net Income was pretty stable and year over year, has known a continued growth from 2003 onwards, except the last couple of years, starting with 2008 when the net income declined to 2009 and got back pretty much as the same level in 2010 and once again declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding this time the 2010 level. Figure 7| Technology Bubble The orange line on the graph represents earnings per share growth and as we can see since 1993, the average operating earnings growth rate has averaged 24.5% a year. The black line represents the monthly closing stock prices. As we can see at the beginning the earnings in price track each other very closely and then between 1997 and 2000 we observe that Cisco stocks became overpriced which matched the other trends in the technology market during the dotcom bubble. It climaxed on March 10, 2000, with the NASDAQ peaking at 5132.52 in intraday trading before closing at 5048.62. (Jesse Colombo, 2012). We can clearly see how during this period Cisco became disconnected from growth and earnings. The price collapsed as a consequence. However, since 2002 – 2003 Cisco stocks has traded more in line with its operating earnings growth (Appendix A, Earnings Growth). Price Earnings Ratio Although Cisco is trying to ensure a dominant position in all of its markets (and reflected in last quarterly results) their earnings were above expectations. This doesn’t give a clear picture of the potential for continued growth for investors. Price Earnings Ratio demonstrates investor psychology in the (Figure 7). It illustrates value in relation to the company’s earnings and is strictly related their yearly financial statements translated into net income. The higher the price earnings ratio the more the market is willing to pay for the company’s earnings. Conversely, a low P/E may indicate a â€Å"vote of no confidence† by the market or it could mean this is a sleeper that the market has overlooked. Known as value stocks, many investors made their fortunes spotting these â€Å"diamonds in the rough† before the rest of the market discovered their true worth. (Ken Little. 2012). Looking closer at earnings growth rate for the time frame 2003 – 2012, we observe that Cisco is averaging at almost 20 per cent stock growth a year (Figure 8) and since 2003 there was a time when the P/E ratio was much higher. Figure 8| By looking below at the P/E graph (Figure 9) we can see that by Fiscal Year End 2003 was nearly 40, by Fiscal Year End 2004 it dropped to 28 and then by Fiscal Year 2005 again to 21. We can see a continuous drop, in 2012 was just over 10 and currently the P/E ratio is around 12.0 based on the closing price of March 28th 2013. Figure 9| Finances over the Last Decade Looking at Cisco’s financial statements for 2003 – 2013 and the historical stock price trends, we can see that Cisco had an accelerated earnings growth. The graph below (Figure 10) outlines this cyclical nature. Figure 10| They had a growth rate of 89 per cent in 2003, 43 per cent in 2004 but by 2009 there was a 19 per cent decrease. This was during the global economic downturn and reflected in their financial statement. Despite that, it’s clear that the company was very profitable. Their earnings increased 24 per cent and are forecasted to reach 20 per cent by the end of the fiscal year 2013. Financial Observations Below are observations on Cisco’s last Financial Results for Q2 2013 released  February 13, 2013. Cisco reported so far a very strong FY 2013 earnings, maintaining their leadership positions in key areas of IT infrastructure such as Switches and Routers, while the firm’s financial strength in terms of cash flow allow them to catch up and surpass other companies in areas such as Wireless, where it wasn’t initially a market leader. Figure 11| The data above, (Figure 11) illustrates Q2 net sales of $12.098 billion, with an increase of 5% year over year. GAAP net income and GAAP earnings per share, for the second quarter of fiscal 2013, included total tax benefits of approximately $926 million or $0.17 per share (Julie Bort, 2013). Product revenue grew 3% while services revenue grew an impressive 10%. Cash flow from operations was well over $3 billion and the company continues its prodigious free cash flow production, which according to Frank Calderoni the CFO, Cisco: â€Å"Cash is King. It enables us to make bold moves.† Gross margins have been very stable around 62% lately for Cisco, exhibiting the strength of the brand versus its competition. According to the analysts, Cisco’s Services business is a key differentiator between it and its competition, and because the margins are higher on Services than Products, the company’s total gross margin should continue to improve slightly (Tim Travis, 2013). According to John Chambers, Cisco chairman and chief executive officer: â€Å"Cisco delivered earnings per share this quarter and record revenue for the 8th quarter in a row in a challenging economic environment. We continue to drive the innovation, quality and leadership our customers expect, and we remain focused on consistent returns to our shareholders†. Strategic Risks Innovation Momentum According to Forbes magazine Cisco lost its â€Å"innovation momentum† and that’s because they relied more on external acquisitions for new product  development: the reliance on external rather than internal sources of innovation, e.g., the purchase of start-ups with promising products. The problem with this strategy, however, is that it is costly, destructive, and unsustainable. It is costly because the would-be acquirers end up buying start-ups that fail to produce any marketable products. It is destructive because it eventually distances would-be acquirers from their end customers. It is unsustainable because it often ends up fuelling bidding wars, as the owners of these smaller companies demand higher and higher premium to compensate them for the risks they assume. (Panos Mourdoukoutas, 2012) Acquisition Strategy Over the period 1993-2013, Cisco acquired one hundred and fifty six companies. Some of the latest acquisitions are Meraki (2012) operating in the Wired and Wireless Cloud networking market, SolveDirect (2013) operating in the Cloud Services market, Intucell (2013) operating in the Mobile Software market†¦etc. By relaying your company strategy only on acquisition you forget to cultivate innovation and creativity across your own organisation and we believe that Cisco strategy in the long run might bounce back as a failure and affect their core competencies. Core Competencies By definition the core competencies differentiate an organization from its competition. The Core Competencies create a company’s competitive advantage in the marketplace and typically, a core competency refers to a company’s set of skills or experience in some activity, rather than physical or financial assets. If we look at the case study (Indu, 2010) and where Cisco stands today within the IT market, we realise indeed that their resources in terms of reputation, brand, financial assets and products are still strong, but in terms of capabilities and talent which help to sustain innovation as a key differentiator between market leaders and their rivals, they have chosen the wrong path. New Markets There is no doubt that Chambers is a successful CEO. This can be seen in Cisco’s last year’s financial statements but since Cloud computing technology has gone mainstream and greater use of mobile telephony networks. Cisco has been unable to innovate, launch and grow new markets for services or applications. According to Forbes Magazine, Chambers has reorganized the company 3 times – but it has been much like rearranging the deck chairs on the Titanic: â€Å"Lots of confusion, but no improvement in results† (Adam Hartung, 2012). Strategic Vision Another risk to be noted is the â€Å"Where to go vision† – distraction and lack of a long-term vision adopted by Cisco is a major risk for the company. In one of his statements, Chambers said: â€Å"I don’t make my decision on the next quarter or on the next year. I make my decision three or five years out so I do not adjust my strategy based on what’s the spending is going to be next quarter or three quarters.† With instability shown in the financial markets for the last couple of years and the prolonged economic recession along with low consumer confidence there is a disjoint with Chambers strategic statements. Consumer Market Penetration Cisco’s growth has been based on a strategy of acquisitions. The main reason behind this was the penetration or expansion of new market opportunities. Cisco have made several ambitious moves into the markets for enterprise tablets, video conferencing and consumer products. Some of these decisions have been ineffective in competing in these markets. In some cases, due to excessive prices and faster development and deployment cycles of competitors. In today’s competitive tech environment those who are slow in bringing innovation and new products to the market will fail to succeed. An example of reinventing the wheel could be Cisco’s Flip camcorder which they acquired in 2009 from Pure Digital. The product failed and the $590 million investment was lost. Customers’ needs are constantly changing and want their technology suppliers to offer those sophisticated services and equipment. Like other tech giants, Cisco is struggling to adapt to changing market conditions and demand in terms of technology and products. Building Revenue Erik Suppiger, an analyst with JMP Securities in San FranCisco, said Cisco â€Å"did a good job managing costs, and keeping their margins up, but there’s a lot of concern about what they can do to build revenue. Building a cloud and wireless business eats into your traditional product lines. If you have a wireless laptop, you don’t need a desktop computer connected to your office network† (Quentin Hardy, 2013). It seems that Chambers, who has led Cisco for 18 years, is well aware of this problem, in one of the latest interviews he said: â€Å"We’d gotten too fat. And when you get fat, you’re slow in decision-making. It had been so easy to say we’re the best in our industry, we don’t need to change, but that’s exactly how you disappear† (Charlie Rose, 2012). Although Cisco reported Q2 earnings more than Wall Street expected, Chambers warned of â€Å"a challenging economic environment.† Distinction Considering Cisco’s latest acquisitions (Intucell, Jan 2013; Solve Direct, March 2013) in mobile software and cloud services, there are signs of progress. However, it is unclear whether Cisco will succeed before Chambers retires in two to four years. His greatest achievement may be building software and services that are distinct from its existing core competencies and product line. Conclusion After in depth analysis of Cisco’s strategic management practices it is clear the company is not without its faults. People in the business community do not agree with some of the strategic decisions made by chambers and this has in some cases lead to a lack of confidence in the company’s progress. It’s also worth mentioning the workforce have ranked the company low in terms of ‘great place to work’ scores. 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In other words stay with the core business. Cisco, since 1984 have done just that. Their popularity grew and they implemented an FTP site to allow customers and developers to access a DB of bug information. By 1990 the company had gone public and had sales in the region of $70m with a net income of almost $14m. They had massive amounts of support centre calls, and supplied routers to the biggest players in the telecom world at the time. By 1992, ‘Fortune’s second fastest growing company in the US, had achieved sales of almost $340m, and had branched out to Europe and beyond. In 1993 they again showed strong customer focus by creating bug tracking systems, to support large corporation who used their products. In 1993 the company completed their first large scale acquisition of Crescendo communications for $95m and the following year New Port solutions for $93m. These were the first in a long list of acquisitions for Cisco and by the mid 90’s the company had a strong brand signature, excellent customer focus and a global footprint. By 1999, the company had revenues of over $12bn. This surge continued and in 2000 market capitalization grossed over $450bn. The company acquired over 40 companies over these 2 years, and demand was so high the production of equipment could not meet the customer demands. Customers began to look elsewhere, and at the same time the cracks in the IT market began to show. Cisco began stock piling, which was not in keeping with their practices, and in the ensuing recession, the company were forced to downsize, with 8500 job losses, and reported loses of almost $2.7bn, a complete reversal of the growth and fortunes up to that time. Figure 12 Figure 12 With John Chambers at the helm, the company drastically slowed down acquisitions, reduced the number of suppliers and resellers and began to steadily grow the company once again, and by 2009 emerged as a pioneer in data management with 75% of the world’s data being managed in some form by the company. One of the few companies to successfully withstand economic slowdown, Cisco, at present sits at number 64 of the fortune 500 list, with total equity of $51bn and 73k+ employees worldwide. Appendix B Earnings Growth Earnings Growth Acquisitions