Foreign Market Servicing Strategies of Lidl

Foreign Market Servicing Strategies of Lidl Lidl is one of the leading global discounter and owns round about 9000 stores in Germany and all over Europe. Lidl has beaten its main competitor Aldi. Aldi is already successful in the United States. The latest history of the company Lidl was clouded by the observation scandal in 2008. This scandal damaged their image. In the matter of the important topic Corporate Social Responsibility Lidl started a project called ECO2LOGISCH. This project is about building stores that are energy-efficient and sustainable. In addition the company sells Fair-trade products. The food retail industry in Germany had a moderate growth in the past but the forecast for the industry looks good. The category of supermarkets, hypermarkets and discounters has the highest market share in the food retail industry. The buyer and supplier power is moderate as well as threats of new entrants and substitutes are moderate. The rivalry in the industry is very strong. The US food retail industry in comparison to the German one has a strong growth and the forecast is not less significant. The category of supermarkets, hypermarkets and discounters has a major market share of 80.2 %. With a Gross Domestic Product of $ 14.2 trillion in 2009 the Unites States are the second largest economy after the European Union. There is a very high diversification of income and thereby a problem of poverty occurs in the United States. With predominating Strengths and Opportunities after the SWOT analysis, the United States satisfy all requirements to become the new market Lidl should expand to. Lidl has ownership, location and internalization advantages and thereby Foreign Direct Invest is the best mode of entry. Given that Aldi used Greenfield investment successfully to enter the US market in 1776 and Lidl did use the same strategy to expand to the European markets, Greenfield investment is the appropriate strategy to enter the new market in the United States successfully. Introduction In times of globalization and international expansion Lidl, who is one of the leading global discounter, should think about an expansion overseas. The following report should discuss if the United States are the right country to expand to and which mode of entry Lidl should use for the expansion. In the first steps the company Lidl itself will be analysed with a closer look at the Corporate Social Responsibility. After that the German food retail industry will be examined. Porters Five Forces Model will be used for this. The next step is to analyse the food retail industry in the United States. For this the industry itself will be investigated and the PEST analysis will give a closer look at the United States. The SWOT analysis will demonstrate the Strengths, Weaknesses, Opportunities and Threats for Lidl by entering the US market. Afterwards the mode of entry will be discussed and the conclusion will give a final answer to the question, if the United States are the right country to expand to. The company Lidl Company overview Lidl is a German discount chain and is part of the Schwarz Beteiligungs GmbH (Holding company). The Schwarz group also owns the consumer markets Kaufland, KaufMarkt, Concord and Handelshof. The history of Lidl can be traced back to the beginning of 1930. At this point in time Josef Schwarz got general partner of the Sà ¼dfrà ¼chte Großhandlung Lidl Co. He restructured it to a wholesale business which was then destroyed in 1944. After ten years the business was rebuilt and in 1972 the headquarter was relocated to Neckersulm. After the dead of Josef Schwarz in 1977 his son Dieter Schwarz assumes full responsibility for the business. Dieter Schwarz bought the naming rights from Ludwig Lidl and from this point on the success started. Lidl first expanded in the region of Neckersulm and then to the whole republic. After the success in Germany, Lidl started to expand internationally. Lidl now owns round about 9000 stores all over Europe and thereby has more stores than its main compet itor Aldi (Langer, 2004; Wikipedia Lidl, 2011). Corporate Social Responsibility Due to the fact that Lidl is not a public company, it is very hard to find any information about Lidl itself. In the history of Lidl it was always the case that Lidl did not want to show any information about the company. For this reason Lidl got the nickname Geheimniskrà ¤mer (mystery monger) (Langer, 2004). In spring 2008 Lidl got involved in a big scandal in Germany. Lidl was accused to observe their employees. This scandal damaged the image of Lidl. Lidl Germany has apologized for this incident and has assured that they will promote immediate moves to prevent any of these incidents to happen again (Byrne, Skilly, 2008). After this incident, Lidl reformed the conditions of employment. A new project is called ECO2LOGISCH. This is a new store generation. The stores will be energy-efficient and sustainable. For example the new stores will be 100% heated using the waste heat from the refrigerated sections. Lidl plans that from 2010 on all Lidl-stores should be build ECO2LOGISCH. With this project Lidl is the first food retailer in Germany who sets sustainable building services engineering as a standard (Lidl: ECO2LOGISCH, 2010). In addition Lidl sells Fair-trade products and has some social projects like a football club for kids. The food retail industry in Germany The food retail industry includes the sales of food and beverages. In Germany the category Hypermarkets, Supermarkets and Discounters has the highest market share of 47.6% (see Appendix 1). In 2009 the industry had a growth of 2.3 % and a value of $ 234.8 billion. In the past the growth was moderate with an average of 2.1 % (see Appendix 2). The forecast for the industry looks good. The growth should be steady and in 2014 the industry will have an expected value of  § 265.5 billion (Datamonitor (a), 2010, p. 10). With the help of the Porters Five Forces Model the food retail industry will be analysed in the following. In the analysis the buyers will be the end-consumer and the suppliers will be food manufacturers, farmers, and agricultural co-operatives. The players in this analysis will be supermarkets, hypermarkets and discounters. Buyer power There is one important change in the consumers behaviour to which the retailers have to respond to. Nowadays the importance of health gets bigger and bigger. The convenience food becomes less important and consumers are more interested in fresh and healthy food. Another important fact is the price. Because there is a wide range of large retailers in Germany the consumer faces no switching costs and thereby the retailers have to have an attractive price scheme. All in all the buyer power is moderate (Datamonitor (a), 2010, p. 15). Supplier power The big German retailers often have a large range of suppliers. With this strategy the retailers ensure stability. They avoid possible delays in deliveries and price fluctuations. In addition to that some large retailers have started to sell own brand products. These two facts weaken the supplier power in the German food retail industry. Overall supplier power is moderate (Datamonitor (a), 2010, p. 17). New entrants It is not easy for new entrants to enter the market because of the aggressive marketing and pricing schemes of the large retailers in the industry. Nevertheless there are low entry and exit costs in the food retail industry and the changes in consumers behaviour gives new entrants a possible niche to enter the market successfully. Besides the low growths rate makes the industry not that attractive to new entrants. In conclusion the threat of new entrants is moderate (Datamonitor (a), 2010, p.18). Substitutes The only real substitute to the food retail is the food service represented by fast foods restaurants, sit-down restaurants and delivery services. But for consumers the food service is more a complement than a substitute. A more direct substitute are individuals and families who cultivate their own food. This is no longer used nowadays but in the long term possible because of the changes in the consumers behaviour and the threat of economically and politically instability. The threat of substitutes is therefore weak (Datamonitor (a), 2010, p.19). Rivalry There exists a high competition in the food retail industry. Main reasons for this are the not existing switching costs for the consumers. The similarity in the basic products of the large retailers pushes them into a competitive pricing scheme. This leads the price wars. These are encouraged by the consumers who are now comparing more and more. They have a look on special offers and the lowest price. The German food retail industry has a lot of competitors. Therefore in a conclusion rivalry is strong in this industry (Datamonitor (a), 2010, p. 20). The United States for expansion Since Lidl already expanded to whole Europe it is time to think overseas. Aldi, one of the main competitors, expanded successfully to the United States in 1976. Lidl already beat Aldi in Germany and Europe. Lidl has more stores all over Europe and has overtaken Aldi in the rankings. So the existence of Aldi in the US food retail market is no real threat for Lidl. The food retail industry in the United States The US food retail industry in comparison to the German has a strong growth. The total revenues in 2009 had a value of $ 859.1 billion and the average growth rate in the years from 2005 to 2009 was 5.3% (see Appendix 3). The forecast is not less significant. By the end of 2014 the US food retail industry will have an expected value of $1,043.1 billion (Datamonitor (b), 2010, p. 10). In the US the category Hypermarkets, Supermarkets and Discounters has the highest market share of 80.2 % (see Appendix 4). Worldwide the market share of the US food retail industry is 19.8 % billion (Datamonitor (b), 2010, p. 11). All these facts make the US food retail industry attractive for Lidl to expand to. To have a closer look at the real attractiveness of the US market for expansion a PEST analysis of the United States will be proceeded in the following. PEST analysis of the United States In this section the political, economical, social and technological environment of the United States will be analysed. Overall the United States are one of the strongest powers worldwide since more than 50 years. Politically the United States have a strong position. In 2009 the democrat Barack Obama displaced the republican George W. Bush. Barack Obama was inheriting a poisoned chalice because of the financial situation and the great debates about the military operations in the Iraq and Afghanistan. Nevertheless the US has a great global influence and a strong democratic setup (Datamonitor (c), 2010). With a Gross Domestic Product (GDP) of $ 14.12 trillion the United States were the second largest economy in the world in 2009 after the European Union (CIA The World Factbook, 2010). In the years before the 11th of September 2001, the United States had an economical boom, after that date the growth slowed down and they felt into a recession. The congress passed bills to stimulate the financial market in 2008 and 2009. Because of this the public dept in the United States increased from 39.7 % in 2008 to 52.9 % of the GDP in 2009 (Datamonitor (c), 2010). The United States are facing a rapidly aging population. This can lead to a decreasing economic growth and thereby to rising tax rates and shortages in labour. The US have a very high diversity in the distribution of income. The Gini index was 45 in 2007 (CIA The world fact book, 2010). 1 per cent of the population belongs to the upper class and in 2009 these people owned 37.1 per cent of the entire property of the United States (Wikipedia Vereinigte Staaten, 2010). However, the United States have a remarkable education system and Barack Obama passed a new health service reform in 2010 (Datamonitor (c), 2010). On the technological front, the United States are a world leader in adapting and applying technology and innovations and they will stay in the position in the near future. But there will be a threat of competition in this sector because of the continuing process of for example China (Datamonitor (c), 2010). SWOT analysis of the company Lidl The SWOT analysis brings together the analysis of the environment and the company. It identifies the Strengths, Weaknesses, Opportunities and Threats. SWOT is the basis for the strategy development of a company. The main facts of the Strengths, Weaknesses, Opportunities and Threats will be discussed in the following. The whole SWOT analysis is provided in Appendix 5. Lidl has a high market share in the fast growing market segment of the food retailers. It has become a global player due to the fact that Lidl expanded successfully to Europe and owns round about 9000 stores. After the success in Europe there are no more obstacles for an expansion to the United States. Another important Strengths is the very good pricing which attracts many consumers. The main Weakness of Lidl is the damaged image because of the observation scandal and the discussion about minimum wages, which affects nearly every discounter. Additionally the low customer loyalty represents another main Weakness. This is an issue because of the low switching costs for the consumers because of the high competition in the food retail sector. An Opportunity is that the category of supermarkets and discounters has a markets share of 80.2% in the food retail sector in the United States. Another Opportunity is the existing poverty in the Unites States. Poor people are more interested in low pricing products. The main Threats are the competitors on the US food retail market. There is Wal-mart, who now starts to open smaller stores like in the store model of Lidl and there is Aldi, the main competitor in Germany. Aldi is a Threat and an Opportunity. Lidl already beat Aldi in the German and European market and Aldi was successful on the US market by using the same discounter model like Lidl. But Aldi entered the US market in the 70s and is now integrated and accepted from the US consumers. This is a challenge for Lidl. In a conclusion the Strengths and Opportunities predominate and Lidl should start the expansion to the United States. Choosing the mode of entry to enter the US market After decided that the United States are a good market to expand to, it is now time to think about the mode of entry. There are various modes of entry: Exporting International Licensing International Franchising Specialized modes (e.g. contract manufacturing, management contracts) Foreign Direct Investment (Greenfield investment, Acquisition strategy, Joint Venture). Dunnings Eclectic Theory gives a good framework to decide which mode is the right one for the company and the market it wants to expand to. Dunning developed three conditions which a firm should be satisfying. Ownership advantage: The firm has to have some special advantages to compete with the foreign companies. For example a good brand name, special technology, know-how or a unique product. In this case exporting would be the mode of entry. Location advantage: It has to be more benefiting to expand to a foreign market rather than expand in the home market. For example lower labour costs. If the ownership advantage and the location advantage apply contractual arrangements like licensing, franchising or alliances are the best modes of entry. Internalization advantage: There has to be a higher profitability by controlling the activities on the foreign market on their own rather than recruit a local company to provide all the important services. For example lower exchange rate risks. In the case that all three conditions are satisfied Foreign Direct Investment would be the best mode of entry (Griffin, Pustay, 2010, p. 196). Lidl as a retailer has the ownership advantages like a bargaining power in purchasing and a special supply chain. Another fact is that exporting would be no alternative for Lidl because a retailer sells products it buys from suppliers. It would be meaningless to export the products again. There are location advantages as well. The German food retail market is concentrated with a high level of competition. Hence there is not much space for further expansion. The market in the United States is a big market and offers enough space to expand to. Even though there are some main competitors. The entry and exit costs are low. For a retailer franchising harbours some dangers. For example it is difficult to legally protect the innovations a retailer is making. Franchising has indeed lower costs but the firm has also a lower level of control. Internalization advantages occur when company-specific advantages cannot be achieved on the foreign market via franchising or similar cooperation forms. This is given because of the facts mentioned before (Borgstrà ¶m, Hertz, Nyberg, n.d.). In summary Lidl satisfies all three conditions and for this reason Foreign Direct Investment is the best mode of entry for Lidl. Now Lidl has the choice between Greenfield investment, joint venture or acquisition. By having a closer look at Lidls past expansion in Europe and the mode of entry Aldi chose in 1776, Greenfield investment is the best solution for Lidl. The company also entered the new markets in Europe via Greenfield investment and Aldi did the same in the United States and it was successful for both. Conclusion The food retail market in the United States offers a good opportunity to expand to. The market has a strong growth and the PEST and SWOT analysis acknowledge the choice of the United States for a new market for expansion. As a conclusion to Dunnings theory, Foreign Direct investment and more precisely Greenfield investment is the best mode of entry. Exporting, Licensing and Franchising do not offer Lidl a good business. These modes of entry are not appropriate for a retailer and in addition Lidl would lose parts of their revenues. Due to the fact that Lidl is not willing to disclose any internal information, Acquisition or a Joint Venture do not represent a possible choice, even though both possibilities have low fixed costs. Furthermore the companies could be competitors on another market and no company wants to share information with a potential competitor. Greenfield investment is the best solution for a successful expansion to the food retail market in the United States. Appendix Appendix 1: Germany food retail industry by categories: % share, by value, 2009à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.13 Appendix 2: Germany food retail industry value: $ billion, 2005-09à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..13 Appendix 3: United States food retail industry value: $ billion, 2005-09à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦14 Appendix 4: United States food retail industry by categories: % share, by value, 2009à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..14 Appendix 5: SWOT analysis of the company Lidlà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦15 Appendix 1: Germany food retail industry by categories: % share, by value, 2009 Source: Datamonitor (a), 2010. Appendix 2: Germany food retail industry value: $ billion, 2005-09 Source: Datamonitor (a), 2010. Appendix 3: United States food retail industry value: $ billion, 2005-09 Source: Datamonitor (b), 2010. Appendix 4: United States food retail industry by categories: % share, by value, 2009 Source: Datamonitor (b), 2010. Appendix 5: SWOT analysis of the company Lidl Strengths Weaknesses High market share in a fast growing segement (discounter) Global player Very good pricing (always offers the lowest price on the market) Very good store locations (near housing areas, good transport connections, good parking facilities) Fast reaction to changes in the market conditions (flexibility is very important in a high competition sector) Damaged image (oberservation scandal and dicussions about minimum wages) Dependence on discouter model Low customer loyalty Exit from the Norway market because of low success Changing consumer behaviour (healthy living) Opportunities Threats After successful expansion all over Europe its time for overseas expansion Significant market for supermarkets and discounters in the US Expansion of the product range (more healthy food) Poverty problem in the US leads to higher demand of low pricing products Aldi already had a great success on the US market (same discounter model) Only focus on low princing products Existing competitors in the US food retail market (Wal-Mart, Aldi) Limited success of food retailer Tesco after entering the US market in 2007 Source: Self made with the help of: Bord Bia, 2008; Jiroutek, n.d.

Racism, Prejudice, Fear and Silence :: Sociology Racism Prejudice Essays

Fear and Silence There are some experiences that have such an impact they change your life forever. The tragedy that occurred on September 11th was certainly one of those. After the bombing, my mom and brother forbade my grandmother to leave the house because of all the discrimination against Muslims. We were scared for her because she wears a scarf. Then the question of how she would attend my brother's wedding became an issue. My brother asked her to take off her scarf during the wedding. I don't blame him for asking because he had good intentions, but I still feel that he should have let her decide for herself. My grandmother, who lived in Iran for many years, is a very simple, but intelligent woman who has her principles. "Take off my scarf? Are you crazy?" was her response. My grandmother has been wearing her scarf since she was a child when the Shah ruled in Iran. The Shah forbade anyone to wear a scarf and would order his police to take them away. It was very difficult for her to go out because of that. To think, she has been through so much and still managed not to take off her scarf - at least until now. The wedding was marvelous. The band played, people danced and happiness set the stage for the momentous day. Everyone seemed to be having a good time, except one miserable old woman. She sat at the far end of the room with no scarf to cover her short hair, no sense of pride, and not a drop of happiness in her. She was hiding in a place where no one could have eye contact with her. Her expression revealed her discontent. It looked like her heart was shattered into many pieces. She was cajoled into doing this, and even though I had not participated in persuading her, I still regret not having done something. With this incident in my mind, I recently visited the mosque with my family. As I peered out the window of the car I saw police cars. I was told they were there to protect the mosque from harm, and a strange feeling came over me. I knew why the police were needed, but the thought of people trying to harm us because some lunatic and his whole crew of idiots were Muslim made me furious. Racism, Prejudice, Fear and Silence :: Sociology Racism Prejudice Essays Fear and Silence There are some experiences that have such an impact they change your life forever. The tragedy that occurred on September 11th was certainly one of those. After the bombing, my mom and brother forbade my grandmother to leave the house because of all the discrimination against Muslims. We were scared for her because she wears a scarf. Then the question of how she would attend my brother's wedding became an issue. My brother asked her to take off her scarf during the wedding. I don't blame him for asking because he had good intentions, but I still feel that he should have let her decide for herself. My grandmother, who lived in Iran for many years, is a very simple, but intelligent woman who has her principles. "Take off my scarf? Are you crazy?" was her response. My grandmother has been wearing her scarf since she was a child when the Shah ruled in Iran. The Shah forbade anyone to wear a scarf and would order his police to take them away. It was very difficult for her to go out because of that. To think, she has been through so much and still managed not to take off her scarf - at least until now. The wedding was marvelous. The band played, people danced and happiness set the stage for the momentous day. Everyone seemed to be having a good time, except one miserable old woman. She sat at the far end of the room with no scarf to cover her short hair, no sense of pride, and not a drop of happiness in her. She was hiding in a place where no one could have eye contact with her. Her expression revealed her discontent. It looked like her heart was shattered into many pieces. She was cajoled into doing this, and even though I had not participated in persuading her, I still regret not having done something. With this incident in my mind, I recently visited the mosque with my family. As I peered out the window of the car I saw police cars. I was told they were there to protect the mosque from harm, and a strange feeling came over me. I knew why the police were needed, but the thought of people trying to harm us because some lunatic and his whole crew of idiots were Muslim made me furious.

The Rocking Horse Winner and The Lottery Essay -- Literary Analysis

In both â€Å"The Rocking Horse Winner† by D.H. Lawrence and â€Å"The Lottery† by Shirley Jackson, the authors take critical aim at two staples of mainstream values, materialism and tradition respectively. Both authors approach these themes through several different literary devices such as personification and symbolism; however, it is the authors' use of characterization that most develop their themes. We'll be taking a look at the parallel passages in the stories that advance their themes particularly when those passages involve both of the authors' subtle character descriptions, and why this method of character development is so powerful in conveying the authors' messages. The only story in which an author employed personalization is â€Å"The Rocking Horse Winner,† and did so to profound effect. The whisperings of the house is the first indicator the reader has that the protagonist family's materialism is not merely an interesting trait (as evidenced by the description of the family's feeling of superiority in their community) but will be the focus of the story's theme and plot as well. Lawrence pays special care to make sure that the sinister mood generated by constant and ever-present whispers, and the potential to enhance the theme, does not go to waste. By assigning the whispers to specific locations and objects, having inanimate objects notice them, and having the whispers respond to events in the story (especially the introduction of Paul's â‚ ¤5000 winnings), Lawrence highlights the critical nature of his short story with regards to materialism. It is the author's portrayal of Paul, however, that most promotes the theme throughout the story. Paul's most striking trait is his obsession that, although is an obvious correlate to his... ...ose traits for the purpose of making us moral people. The reader is also asked to look beneath the veneer of civilized behavior that typically surrounds them and wonder at the possibility of such an atrocity being committed by one's neighbors in the name of tradition and community. Both of these short stories are excellent examples of works with masterfully expressed themes that leave a lasting impression on the reader. In particular, the impact of these two stories stems from the two authors' insightful choices about character description, as well as their use of literary device. Although both themes are, themselves, important, without each authors' decision to communicate their characters' traits in a subtle manner that restricted the accessibility of information to the reader, they might not have ended up being studied in literature classes today.

Andersen’s Case Auditing and Assurance Services

Arthur Andersen was one of the five biggest accounting firms in United States. Arthur Andersen is specific example about the most recent business collapse, which is considered profound in American business history. The firm, practicing in more than 80 countries with thousands of employees, now lost its reputation as an audit and accounting firm. There are many different thoughts and judgments about the case when Arthur Anderson failed its tasks to detect fraudulent financial activities on Enron and several different companies.The Enron Company filed bankruptcy in December of 2001. Being well known as a big energy company which headquarters is located in Houston, the bankruptcy of the company drew lots off attentions from business world. Questions were asked and lots of financial misstatements were revealed and Arthur Andersen – Enron’s external auditing and accounting firm in Houston, was involved. Stephens (2002) stated, Arthur Andersen who were responsible for managin g Enron’s audits, had illegally destroyed paper and electronic documents related to their representation of Enron (p. 4). The case soon went to the jury. Louwers et al. (2011) reported the instructions hinged on the wording of statue that makes it a crime to knowingly use intimidation or physical force, threaten, or corruptly persuade other person. According to Oxford Dictionaries online, corrupt means having or showing a willingness to act dishonestly in return for money or personal gain. In this case, the word â€Å"corrupt† was not applied appropriately to the actions of Anderson. There was no evidence to prove that there is a person who is corrupt persuader.Who was the one that acted dishonestly? The court also needs to identify the personal gain that a corrupt persuader can gain from having such action. The court could not find the answers to this issue, which means the decision is attached to the firm’s fate – Arthur Andersen. Research by Stephens ( 2002) states that to clarify the instruction of Judge Harmon about â€Å"corruptly†, the prosecution describes the illegal conduct of four corrupt persuaders: Duncan, Temple, Thomas Bauer, and Michael Odom.After a few days, the jury was not required to unanimously agree on the single corrupt persuader’s identity (Stephens, 2002). As Louwers et al. (2011) stated that the issues that overturned the Andersen verdict were based on faulty jury instructions, not on whether Andersen was in fact guilty or innocent. It was not Andersen who violated the law; it is individuals of the company who did. Hoxter (2005) argued that the instructions were faulty because they did not require proof that Andersen officials knew they were doing something wrong.The ruling destroying the documents was not a crime. There must be a person with authority who sent out the instructions for Arthur Andersen employees to do so. As Stephens (2002) restated from the interviews with reporters after the v erdict, four jurors identified Temple as that person. It is appropriated for the Supreme Court to overturn the lower court’s decision because Judge Harmon used the word â€Å"promptly† with different meaning from the dictionary, which is â€Å"improper purpose†, such as intent to subvert or undermine the fact finding ability of an official proceeding.The lower court failed in identifying the specific person who is corruptive persuader. According to Duska (2005), Arthur Anderson, a venerable firm, at one time, prided itself in its role as auditor since it fulfilled an important public function. As auditors, Andersen’s employees should have had clear minds to make sure that the financial statements that they audit are really what were going on in the company. However, big money that was made in the consulting means the responsibilities that auditors have to face is heavier.The SEC and the department of Justice should’ve tried to targeted specific ind ividuals who had engaged in acts because it seems not fair for the rest of the firm. According to Cunningham (2005), â€Å"It is a shame that the actions of a few individuals at Andersen caused 28,000 employees in the U. S. to lose their jobs† (p. 6). Indeed, putting the complete firm out of business for the unethical actions of a couple of individuals was the real sin. Andersen’s conviction was overturned does not mean that its employees acted in ethical manner.McNamee and Palmeri (2002) provided information about Arthur Anderson’s cleaning-up mission when the Enron case started to topple. From Anderson’s internal document, Enron team was also busy amending four key memos to correct the record of its review of Enron’s convolute and conflicted partnership deals (McNamee and Palmeri, 2002). Moreover, David Duncan overruled the concerns on at least four occasions, siding instead with Enron on controversial accounting that helps to hide debt amount an d brought up the earnings.That is not all, there are also evidences said that Duncan’s team wrote memos which are falsely stated that PSG partners had signed off on Enron’s inventive bookkeeping. Nancy Temple is the attorney for Arthur Andersen. She is the one who should clearly know about all the regulations and should not be the one who acted unethically. According to McNamee and Palmer (2002), memos from Nancy Temple to David Duncan were found which can considered the main key in the conviction of Duncan about shredding the documents. It is more for Nancy Temple who is more responsible for the Andersen saga.The class action lawsuit against Andersen also has another name which include other entities name in there because those entities also had involved in Enron’s case. These entities helped Enron to cover up because by helping them they make more profit. From Arthur Andersen’s case, entities and accounting firms in business world should learn lessons f or their own goods. If the employees notice of any concerning about the legality of any records, they should contact the legal department right away. There is nothing wrong disposing of business papers that are not needed.It is illegal only when retention is required by law or regulation according to Stephens (2002). Reference Page Hoxter, C. J. (2005). Arthur Andersen Conviction Overturned. Caribbean Business, 33(25), 8. Duska, R. (2005). The Good Auditor – Skeptic or Wealth Accumulator? Ethical Lessons Learned from the Arthur Andersen Debacle. Journal Of Business Ethics, 57(1), 17-29. doi:10. 1007/s10551-004-3818-1 Stephens, D. O. (2002). Lies, Corruption, and Document Destruction. Information Management Journal, 36(5), 23. McNamee, M. , Borrus, A. , & Palmeri, C. (2002). OUT OF CONTROL AT ANDERSEN.Businessweek, (3777), 32-33. Cunningham, C. (2005, July-August). Ruing Andersen's demise and the loss of audit competition. Financial Executive, 21(6), 6. Retrieved from http://g o. galegroup. com. glbvv001. enmu. edu/ps/i. do? id=GALE%7CA134300985=2. 1=nm_a_enmu=r=EAIM=w In Oxford Dictionaries online. Retrieved from http://oxforddictionaries. com/us/definition/american_english/corrupt? q=corrupt Louwers, T. J. , Ramsay, R. J. , Sinason, D. H, Strawser, J. R, & Thinodeau, J. C. (2011). Auditing & Assurance Services (5th, ed. ). NY: McGraw-Hill Irwin.

Ford and Toyota Case Study Essay

1. Which schools of management thought are illustrated in this case? When Ford was founded in 1903, Henry Ford followed the classical management thought to a â€Å"T† (no pun intended!) They made one car in one color. The classical management thought believes there is â€Å"one best way† to do things to accomplish a goal. Ford wanted to produce cars quickly to meet with demands, so at that time the classical management thought made perfect sense. Another part of the classical management thought is that managers constantly look for ways to improve the process of doing things. Ford then moved onto both quantitative and systems school of management though. They wanted to improve the ways they were using to design cars. Ford began using computers to help them more effectively achieve their goals of designing cars that would please their customers. Also, Ford wanted to meet and exceed any demands their customers may have thrown at them. This illustrates the systems school of management thought. Toyota demonstrated the contingency school of management thought. By studying Ford’s process and recognizing the need for and capability of improvement, they are being creative, learning from the past, and accepting diverse opinions and methods for doing things. Finally, both Toyota and Ford clearly demonstrated the quality school of management thought. Both companies focus a lot of efforts on quality as it is perceived by customers. In order to keep their customers happy, the companies listen to what said customers want. 2. Customers’ perception of quality includes performance, reliability, durability, serviceability, and aesthetics. What else do car customers want? Add to the perception of quality and create a list of the most-desired quality characteristics in a car Adding to what the book says is the perception of quality, car customers seem to want or are interested in consistent safety features, fuel economy, comfort, price, handling, environmental impact, and possible maintenance costs.

Charlotte Bronte’s Aspects Of The Gothic

Charlotte Brontes Aspects Of The Gothic In †Jane Eyre†, Charlotte Bronte places her narrator and central character in the middle of dramatic events. One of these is at the start of the novel when Jane is trapped in the Red Room and the next is when she attends Thornfield Hall to work as a governess. Charlotte Bronte uses certain features of gothic literature to create a tense atmosphere for the reader. Jane Eyre is sent to live with her unfeeling aunt and abusive cousins, after her parents sadly passed away. Jane Eyre leads a very unhappy life as the people whom she grows up with do not treat her like family and blame her for any trouble. Now, Jane Eyre is locked in the Red-Room after an incident with her cousin, for which she takes the blame. As the years pass and Jane grows into a young woman, she is sent to Thornfield to work as a governess and, in the passage, is being shown around the estate. In the Red Room and at Thornfield hall, Bronte establishes a typical gloomy, gothic setting to create suspense and terror. Charlotte Bronte uses powerfully gothic descriptions of objects especially in the Red -Room. The name seems more important because of the alliteration and the fact that the room is identified as ‘red’ makes the reader feel that it is perhaps dangerous. The colour is often associated with blood and death, both of which create fear for the reader. We are told by the narrator that â€Å"The red-room was a square chamber, very seldom slept in, I might say never†. The use of the word †chamber† makes it sound much larger and grander and perhaps more uninviting than a regular room. The fact that the room is hardly ever slept in suggests that it is abandoned by all human company and creates a tense mood for the reader raising several questions about its safety. Bronte, therefore, uses colour to reflect the turmoil of emotions such as rage, fear and frustration which Jane is now experiencing. The objects which Charlotte Bronte describes in the Red Roo m create a typical gothic environment. We are told that the room is decorated very darkly. ‘The chairs were of darkly polished old mahogany’, which suggests that the furniture in the room is sombre, old and heavy. Colours associated with the gothic are generally darker shades, and the Red Room purposely creates images in the reader’s mind of gloomy objects to create a depressing atmosphere. When the writer describes the bed as â€Å"glar(ing) white† and the â€Å"snowy Marseilles counterpane†, this creates a contrast to the surrounding redness of the rest of the room. â€Å"Glared white† uses personification to describe the bedding as antagonistic to Jane as if it is watching her. This creates more torment for the reader. Even though the colour white might seem a much more optimistic colour than red, here it is used to create negative thoughts. The â€Å"snowy white counterpane† presents the bed as being icy cold, like death. When Jane looks in this mirror she sees a â€Å"half imp, half fairy† staring back at her. This introduces an element of the supernatural and suggests that Jane believes evil forces within the room may have possessed her and are reflected in the glass. Charlotte Bronte plays here on the superstitious fears of the reader. The fact that Jane Eyre is trapped in the red-room where her uncle died is terrifying enough but the idea that the room might have the power to drive Jane mad plays on our deepest anxieties. Death is a prominent feature of the gothic and Bronte uses the dead uncle and the possibility that he haunts the room to intensify the atmosphere. When Jane looks in this mirror is the most disturbing moment in the description of the red-room. Horror and fascination are created for Jane at this moment. The description of her †white face† and †glittering eyes of fear† show that Jane appears like a ghost to herself, the word †glittering† hinting a t madness.

Case Study of the Navy Marine Corps Intranet project (NMCI) project Essay

Case Study of the Navy Marine Corps Intranet project (NMCI) project Management - Essay Example The case study analysis of the NMCI project shows that if the above measures are not put in place, there are likely chances of the project failing to meet its set goals and objectives. Introduction The term project is used to describe a set of linked activities or it can be precisely defined as a onetime activity with a well defined set of desired results (Hellriegel 2001). Some of the major features of a project include a definite start and finish, a time frame for completion, uniqueness as well as involvement of people on a temporary basis. Thus, for any project to be a success, project management plays a pivotal role in the implementation of the whole project. Against this background, this case study based essay seeks to critically analyse the project management practices and outcomes in the Navy Marine Corps Intranet (NMCI) project being executed by Electronic Data Systems (EDS). The essay is divided into three phases and it will be structured as follows: Phase one deals with a p reliminary scope statement, phase two deals with presentation of an analysis, critique and recommendations regarding the project management areas of estimating, quality and communication as they apply to NMCI’s performance and the third phase will deal with presentation of an analysis, critique and recommendations regarding the project management areas of risk management, scheduling and budgeting and project execution as they apply to the case of NMCI. An assessment of whether the project was a success from the stakeholders’ perspective will be given at the end of the essay. Phase 1 The Preliminary Project Scope Statement is a framework or guideline that spells the main ideas and decisions to be made in the project and can be constantly reviewed to ensure compliance with the project goals set (Yeates & Cadle 1996). It documents all the requirements of the project as well as the boundaries within which the project will be implemented whereby there is a common understand ing between the project management team and the stakeholders involved. Thus, â€Å"the preliminary Project Scope Statement defines the project and establishes what must be accomplished at a high level,† (Elyse, PMP & CPHIMS 2006). The project objective in this case of NMCI is to build a single and seamless network. Against this background, EDS has managed to get a contract worth up to $9 billion to supply the US Navy and Marine Corps with a single, seamless network. Indeed, this is seen as the biggest government contract in the US. The other objective is that The Navy contract is being regarded as a pilot project for the way the military as a whole will run its IT in the future. In other words, this project seeks to create a situation whereby the Navy will be given the autonomy to manage its affairs with regards to its information and technology (IT) needs in the future. The project requirements include IT infrastructure in the form of computers, hardware as well as software that is required in executing this project. The project boundary is limited to EDS, the contractors, NMCI and the government of the US which is also a sponsor of the project. The project also assumes that EDS systems are intended to be fully operational by June 2003 which entails that the Navy will be ruled by the PC business in the years to come. Within the scope of this project, the major constraint likely to be encountered is related to cultural factors in the