Essay on Cyber-plagiarism - 1469 Words

Cyber-plagiarism Its two oclock in the morning, youre just one page into a 10-page term paper thats due at eight oclock. A few years ago, that would have been it: You would have submitted the paper late, if at all, and dealt with the consequences. But this is 2005, and so, in your most desperate hour, you try a desperate ploy. You log on to the Internet, enter term papers into an online search engine, and find your way to www.termpaper.com. There you find a paper that fits the assignment, enter your credit card number, and then wait until the file shows up in your e-mail account. You feel a little ashamed, but, hey, the course was just a distribution requirement, anyway. You put your own name on the title page, print it out,†¦show more content†¦According to Anthony Krier, a research librarian at Franklin Pierce College in Rindge, New Hampshire, and a widely quoted source on Internet plagiarism (he maintains a database of term-paper websites), the number of term-paper sites has swelled from 28 in the beginning of 1997 to 72 today. Does the increase in the number of sites translate into an increase in cheating? Certainly, says Krier. Theres no doubt about it. People have got to realize the problem is not going away until they start taking it seriously. At least one school, Boston University, is. Last year, it became sufficiently worried about online plagiarism that it launched a sting operation, in which a law student posed as an undergraduate in search of a paper on Toni Morrisons Beloved. In October, the university--which has been dogging term-paper mills for 25 years--filed suit against eight of the companies it claims to have snagged in the ruse, charging them with mail and wire fraud, racketeering, and breaking a Massachusetts law against term-paper sales. But B.U. is the exception. Harvard Universitys Thurston Smith, secretary to the administrative board, is serenely confident that Internet plagiarism is not a problem at Harvard. Im sure its going on somewhere, he says. I just have to believe Harvard students would have too much respect for the faculty. Just as sanguine are administrators at Bucknell, Dartmouth, and Yale. Terri Barbuto, secretary of the executiveShow MoreRelatedCyber Crime And The Extent Of How It Is An Ever Growing Issue Within Our Society1959 Words   |  8 PagesChapter 2: Literature review This literature review study will consist of the overview of topics regarding cyber crime and the extent of how it is an ever growing issue within our society. Topics such as Digital forensics which is used to combat cyber crime will be thoroughly discussed. Another topic that is important in this study is Plagiarism. This is a problem that is also on the rise as technology advances, due to the different techniques available of obtaining data. Keylogging will be theRead More The Internet Plagiarism Explosion Essay1443 Words   |  6 PagesA great deal has been published in the media about the explosion of Internet plagiarism among high school and college students. Because the Internet is so young, there have been few studies conducted on the extent of Internet plagiarism. However, existing studies do show that the Internet is an extremely popular tool students use to cheat on written assignments. In any group of students, some will choose the path of academic dishonesty and copy the words or ideas of another person without givingRead MoreThe Problem of Plagiarism Literature Review2696 Words   |  11 PagesThe Problem of Plagiarism: Literature Review Selection Melinda â€Å"Mindy† L. Boucher Lower Columbia College The Problem Students routinely hand in papers in which the writing is so complex and the vocabulary so sophisticated that there is doubt that they were written in the students’ own words. When samples of the writing are typed into a Google search engine, sentences and whole paragraphs are found to be a match. Students are confronted with the plagiarism and given informationRead MoreThe Importance of Ethics Academically and Professionally Essay1261 Words   |  6 Pagesparticular assignment was turned in, they was guilty of plagiarism. Consequently they received a zero on the assignment which resulted in them ultimately failing the class. This incident affected them so badly that they immediately transferred schools. Personally knowing the classmate, when asked why they did it, they responded because they honestly thought they would not get caught. Although all of my professors would stress to everyone about plagiarism, I never understood how exactly they would know theRead MoreCyber Eth ics: Rules for Using the Web Essay1123 Words   |  5 PagesCyber Ethics: Rules for Using the Web We all have heard of ethics. According to Websters II New College Dictionary (1995), ethics is the rules or standards governing the conduct of a person or the members of a profession. As Winn Schwartau (2001) stated ethics is also about understanding how your actions will affect other people. Cyber-ethics is the ethical decisions we make when using the Internet. We are tasked to use the Internet on a daily basis and we task students to use the Internet regularlyRead More Cyber Ethics Essay example1082 Words   |  5 Pages Cyber Ethics: Rules for Using the Web We all have heard of ethics. According to Webster’s II New College Dictionary (1995), ethics is the rules or standards governing the conduct of a person or the members of a profession. As Winn Schwartau (2001) stated â€Å"ethics is also about understanding how your actions will affect other people†. Cyber-ethics is the ethical decisions we make when using the Internet. We are tasked to use the Internet on a daily basis and we task students to use the Internet regularlyRead MoreInternet Plagiarism Is Becoming The Root Of Unethical Behavior Among Students Essay898 Words   |  4 PagesInternet plagiarism is becoming the root of unethical behavior amongst students. Educators are finding themselves having to combat instances of cyber cheating and the many ways it can be done. There are many opposing attitudes toward the way educators are handling the matter in schools. There has been media attention, hearings with school boards, and expulsion of students. Educators are n ow having to create equally savvy tools to try to keep up with the internet and its myriad of ways to cyber cheatRead More Plagiarism in the 21st Century Essay1632 Words   |  7 PagesPlagiarism in the 21st Century The problem of plagiarism has haunted the academic world for centuries. Plagiarism is defined as â€Å"taking ideas, passages, etc from an author and presenting them, unacknowledged, as one’s own†.[1] This problem was limited in the past by the lack of materials available to plagiarize, either in libraries, newspapers, magazines, or in academic files of campus organizations. 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The purpose of this study is to understand 6 different ethical reasons used by student to overcome with plagiarism and with help of these ethical reason, faculties can bring a solution to stop or prevent plagiarism. Where as unethical behavior can also lead to worries in school or colleges, so there is need to correct it so that it has positive impact on organizational ethics

The International Court Of Justice - 2388 Words

INTRODUCTION: International court of justice is a principal judicial organ of United Nations organization and is also known as world court which was established in 1945 by UN charter and began work in 1946. ICJ is successor of permanent court of international justice which was dissolved after the 2nd world war. ICJ is located in The Hague, Netherlands. In judicial settlement, ICJ occupies a prominent position and decides legal issues of general importance. ICJ comprises of fifteen judges who are elected for nine years by the general assembly and the security council, regardless of their nationality. JURISDICTION OF ICJ : According to Article 93 of the UN charter, all members of UN can automatically be the parties to the court. For non-members states, article 93 also provides the right to the parties of the court if they wish to and willing to be bound by the jurisdiction of court. For example, Switzerland used this method to become the party of the court in 1948. The court has jurisdiction over the states when the states accept the jurisdiction of the court. So the court doesn’t have compulsory jurisdiction over the states, since there cannot be a central political authority over the sovereign states. Therefore, no international tribunal can exercise jurisdiction over the sovereign states without their consent. The jurisdiction of ICJ is based upon the consent of the parties. The principle of consensual basis of the jurisdiction of ICJShow MoreRelatedThe International Court Of Justice922 Words   |  4 PagesInternational Court of Justice (ICJ, or the Hague International Court of Justice) established in 1945 is one of the main organs and judicial branch in the United Nation. It legally based on the Statute of International Court of Justice signed in 1945 and Statute of the Permanent Court of International Justice signed in 1920, which are unitary parts of United Nation Chapter. The International Court of Justice is composed of 15 judges elected to nine-year terms of office by receiving an absolute majorityRead MoreHistory And Introduction Of The International Court Of Justice786 Words   |  4 Pages1. History and Introduction to the International Court of Justice The traditional establishment of the ad hoc tribunals formed as a permanent â€Å"Court of Arbitration†, this organ so formed was under the League of Nations which was later replaced by The International Court of Justice after the World War II [1]. The International court of Justice so formed is the principal judicial organ of the U.N. It is the foundation of June, 1945 which holds seat at The Peace Palace, Hague, Netherlands. It beganRead MoreSuperiority of the International Court of Justice Essay2824 Words   |  12 PagesIntroduction The International Court of Justice (ICJ) is an important organ of the United Nations. Actually it is the UNs principal judicial arm used to foster international peace. It was established after the League of the Nation and its judicial organ the Permanent Court of International Justice (PCIJ) were dissolved after the Second World War, in 1946. Its main purpose is to support the UN (which was formed in 1945) in its endeavour in promoting international peace and law . Important to noteRead More The United States Interaction with the International Court of Justice Over Consular Rights: How Our Refusal to Obey Is Impacting Foreign Nationals an5248 Words   |  21 PagesThe United States Interaction with the International Court of Justice Over Consular Rights: How Our Refusal to Obey Is Impacting Foreign Nationals and American Citizens On January 9, 2003, Mexico initiated proceedings before the International Court of Justice against the United States of America concerning the alleged violations of Articles 5 and 36 of the Vienna Convention; basically, claiming that the United States is not honoring the consular rights of foreign nationals within the UnitedRead MoreWhy Is Singapore Contesting the Claim over Pedra Branca with Malaysia? How Has This Issue Affected Relationship Between the Two Countries? How Would It Affect Bilateral Ties Once the Decision Is Announced by the International Courts of Justice in ...2306 Words   |  10 Pagesownership of Pedra Branca. After failing to resolve this problem bilaterally, both Singapore and Malaysia signed a Special Agreement on 6 February 2003, formally notifying the International Court of Justice of their decision to submit the dispute to the Court for arbitration. Written memorials were submitted by both sides to the Court in 2004 before commencing oral proceedings on 6 November 2007. Oral proceedings formally ended on 23 November, initiating the Court’s deliberations over the case. SINGAPORE’SRead MoreEffectiveness of International Law1254 Words   |  6 Pagesfocus on international law being an effective tool for the resolution of international disputes. Timely resolutions and unbiased resolutions are factors that determine effective dispute resolution. The definition and concept of international law, effective aspects of international law, and certain limitations of international law will be discussed in this essay. Furthermore, case studies will be provided to support the argument and to demonstrate the procedures of resolving international disputesRead MoreRough Justice : Battle For Fix The World, One Prosecution At A Time By David Bosco1134 Words   |  5 Pages The book Rough Justice: Battle to Fix the World, One Prosecution at a Time was authored by David Bosco. Basically, the book focuses on the establishment of the international court and how years after its formation the powerful nations do not cooperate with it. Powerful nations such as the United States and Russia do not support the activities of International Criminal Court (ICC) and thus leaving its mandate to the poor African Nations. 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Fast food Free Essays

Fast Food Currently, most of the people depend on fast food which is easily accessible rather than cooking food at home which is a time consuming task. Fast food is the most popular food in America. Does fast food proves to be a healthy option for a daily purpose? Is fast food healthy? Being an argumentative topic this term â€Å"fast food† comes up with many questions. We will write a custom essay sample on Fast food or any similar topic only for you Order Now Fast food is a quick way of filling up your stomach but it is followed by many unknown and known disadvantages. As a peek in the â€Å"Consumers reports on fast food: four big names lose† from the book â€Å"The Norton Field Guide to Writing†, the reporter mentions that † Next time you have a craving for fast food, think twice before slowing down for Burger King, KFC, McDonald’s, or Taco Bell†. The fast food restaurants the reporter mentioned here, are the most famous and renowned places, where the consumer is attracted to eat due to food and low prices. In my opinion there is only one reason why anyone should rely on fast food couple of times and that is time saving. It saves time. But there are many other reasons as surveyed by the reporters for people to be attracted towards fast food. One major reason is the low prices. As also mentioned in the research named â€Å"Fast foods† from the â€Å"Black book† by â€Å"Emanuel Goldman- Alfred L. Simon†, that, â€Å"McDonald’s might not be ready with the problems with its chicken†. But, if we see as a whole the prices of McDonald’s are very low which hides the fact that there have been many issues with the chicken it use. People are attracted to McDonald’s even today for their meals. There are many problems caused due to the regular intake of fast foods. Some serious problems are Obesity, weight gain, type two diabetes, coronary artery disease and PCOD. Obesity is one of the most common and erious problems found in Americans. This problem is a clear and direct result of the lifestyle in America. The habit of substituting meals with the fast food gives a birth to obesity in an individual. In the Journal, â€Å"Fast Food: Unfriendly and Unhealthy’ from â€Å"International Journal of Obesity’, the author S Stender, J Dyerberg, and A Astrup has given the example of a documentary film ‘super-size me’, where the character Mr. Spurlock ate McDonald’s food thrice a day for 30 days and gained 11 kg. This film raises a question that whether fast food poses a special health risk. This is a very mportant question to be answered for all the fast food lovers. The other problems like PCOD and diabetes are a result of fats food intake. The Polycystic ovarian disease found in most of the women these days is caused due to the weight gain. This weight gain is a result of our food habits, like consumption of fast food on a regular basis. Another reason for the increased craving for fast food among the kids is the fast food ads which are made graphically innovative so as to attract the kids. The recent study shown by â€Å"The Washington Post† in their program, â€Å"Trying to Cut Back on Fast Food Ads for kids†Ã¢â‚¬Ëœ mentioned that the obesity in kids of age group 6-11 has gone down because some fast food chains have cut down in their advertising. This statement shows that the advertisements and obesity in kids are directly proportional to each other. This is a strategic advertisement plan for the fast food agencies to make profit. They invest more on advertisements targeting the kids as their main audience and are women. Young women are facing many problems due to the intake of fast foods. In a Journal â€Å"Dieting Behaviors of Young Women Post-College Graduation†, the uthors â€Å"Soliah, LuAnn Walter, Janele Antosh and Deeanna†, had conducted a survey that included questions about the eating habits of women and their psychological affinity for food. The conclusion of the survey was not shocking but very obvious that three groups of women appeared to be at an increased risk of unhealthy eating and poor food selection decisions. The unhealthy food here is the fast food. Fast food is the most selling food worldwide. There are many reasons one cannot avoid the fast food. Good taste is one of the biggest reasons. Low prices are another reason which attracts the consumer. Fast food has become the regular meal of people. Whenever I visit any food chain I can see a bunch of people spending their valuable money on something which could be harmful for their health. The conclusion, henceforth, is very clear that fast food is not healthy in any terms. Fast food consumed results in many problems which are ignored by the fast food consumers. America faces most of the consequences of eating fast food on a regular basis. Some problems are very serious like obesity and diabetes which are a direct result of fast food consumption. It is still not late for the people to put a light on the articles and surveys conducted n the fast food being a disaster and learn a lesson through their results. Fast food industries should be responsible enough to advertise less or make their food healthy instead of cheesy and greasy. An individual should keep a track on their diet decisions rationing them with their daily intake fast food and other diet. The comparison would be very useful for an individual to realize how to make their health and wealth lives longer and strong. How to cite Fast food, Papers Fast Food Free Essays Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. History: The concept of ready-cooked food for sale is closely connected with urban development. We will write a custom essay sample on Fast Food or any similar topic only for you Order Now In ancient Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop.Flatbread and falafel are today ubiquitous in the Middle East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada. In the French-speaking nations of West Africa, roadside stands in and around the larger cities continue to Sell—as they have done for generations—a range of ready-to-eat, char grilled. Meat sticks known locally as brochettes. Market size and major players †¢Dominated by McDonalds having as many as 123 outlets. †¢Domino’s pizza is present in around 274 locations. †¢Pizza hut is also catching up and it has planned to establish 147 outlets at the end of 2009. Subways have established around 145 outlets. †¢Nirula’s is established in Delhi and Northern India.However, it claims to cater 50,000 guests every day. It has future expansion plans for more than 50 outlets every year, for next three years. Major players in fast food †¢McDonalds 132 outlets †¢KFC 72 outlets †¢Pizza hut 147 outlets †¢Dominos Pizza 274 outlets †¢Cafe Coffee Day 833 outlets †¢Barista 200 outlets Fast food contains high amount of †¢Calories †¢Saturated Fat †¢Carbohydrates †¢Sugar †¢Sodium †¢Proteins Why do people eat it? ?Quick and Easy ?Tastes good ?Provides satiety and comfort It’s everywhere Dual Income families ?Work day-away from home ?Shifts in Traditional Food habits ?High income urban dwellers ?Variety of choice of foods ?Home delivery, take-away restaurants, American chains INDIA EMERGING MARKET FOR GLOBAL PLAYERS The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base drastically. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society.The growt h in nuclear families, particularly in urban India has decreased drastically. India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. Major players of fast food in India †¢ Mc Donalds †¢ KFC †¢ Pizza hut †¢ Dominos Pizza †¢ Coffee day †¢ Barista Kentucky Fried Chicken About the Company KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a â€Å"concept† of Yum!Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, Menu itemsKFC’s specialty is fried chicken served in various forms. KFC’s primary product is pressure-fried pieces of chicken made with original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Kentucky Grilled Chicken – This marinated grilled chicken is targeted towards health-conscious customers. It features marinated breasts, thighs, drumsticks,and wings that are coated with the Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the Original Recipe fried chicken. Nutritional value KFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively high levels of trans fat, which increases the risk of heart disease. The Center for Science in the Public Interest (CSPI) filed a court case against KFC, with the aim of making it use other types of oils or make sure customers know about Trans fat content immediately before they buy food. Advertising One of KFC’s latest advertisements is a commercial advertising its â€Å"wicked crunch box meal†.The commercial features a fictional black metal band called â€Å"Hellvetica† performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the â€Å"wicked crunch box meal† and saying â€Å"Oh man that is hot†. In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage. KFC Business Strategy KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated.Some major threats include the changing attitudes of society toward healthier eating habits, KFC has more than 9,800 outlets located in 77 countries. In marketing, KFC restaurants are not restricted from locating within close proximity of other KFC restaurants. There are two alternative strategies for KFC. The first strategy involves keeping PepsiCo beverage division and snack foods division together, and a divestiture of PepsiCo restaurant division; selling Taco Bell, Pizza Hut, and KFC. MC Donald’s About the company:McDonald’s is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. More than 75% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. The strong foundation that he built continues today with McDonald’s vision and the commitment of our talented executives to keep the shine on McDonald’s Arches for years to come. To read more about McDonald’s history, vision and executives, click on their links in the left menu.We drive our business momentum by focusing on what matters most to customers. Our owner/operators, suppliers and employees work together to meet customer needs in uniquely McDonald’s ways. The powerful combination of entrepreneurial spirit and System wide alignment around our Plan to Win enables us to execute the best ideas with both large-scale efficiency and local flair. Products McDonald’s predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items,and desserts. In most markets, McDonald’s offers salads and vegetarian items, wraps and other localized fare. Portugal is the only country with McDonald’s restaurants serving soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). AdvertisingMcDonald’s has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the companyâ€⠄¢s advertising strategy. To date, McDonald’s has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns. PROBLEMS OF INDUSTRY I. Environmental friendly products cost high: Government is legislating laws in order to keep check on the fast food industry and it is emphasizing more on the usage of bio-degradable and environment friendly products. But associated with this issue is the problem that fast food player faces – the cost associated with the environment friendly product. They cost much higher than the normal products that companies uses for packaging or wrapping their products.II. Balance between societal expectation and companies economic Objectives: To balance a society’s expectation regarding environment with the economic burden of protecting the environment. Thus, one can see that one side pushes for higher standards and other side tries to beat the standard back, thereby making it a arm wrestling and mind boggling exercise. Health related issues: obesity I. Studies have shown that a typical fast food has very high density and food with high density causes people to eat more then they usually need. II.Low calories food: Emphasis is now more on low calorie food. In this line McDonald has a plan to introduce all white meat chicken. Mcnuugget is with less fat and fewer calories. Swot analysis of fast food industry Strengths †¢Quick service †¢Affordable †¢AttractionWeakness †¢Different preferences †¢Lack of customization †¢Unhygienic and unhealthy Opportunities †¢Growing nuclear families †¢Growing urban lifestyleThreats †¢Oppositions from various organization †¢Location †¢Ready-to eat †¢Health concerns ANALYSIS ; INTERPRETATION 1. How often do you use fast-food services? . Daily b. Weekly c. Fortnightly d. Monthly 2. Which fast food restaurant would prefer? a. McDonalds b. KFC c. Pizza Hut d. Subway 3. What are the reasons for eating fast food? (You can tick more than 1) a. Appearance of products b. Price of the products c. Flavor of products d. Convenience of the products 4. What else do you buy when purchasing fast food’? a. Carbonated (fizzy) drinks b. Coffee, tea c. Ice cream d. Crushers 5. What time would you normally buy fast food? a. Before 12 pm b. Between 12-3 pm c. Between 6-9 pm d. 10pm or later How to cite Fast Food, Papers Fast Food Free Essays odBradd DentFast Food Nation Questions Introduction America’s fast food industry was founded by self made man who took risk, worked hard, some not even going to collage. Today the industry relies on a low-paid and unskilled workforce, where a handful are able to rise up the corporate ladder, while the vast majority lack fulltime employment, receive no benefits, and end up quitting after a few months. The fast food industry prospered over the last 30 years because minimum wage was lowered, marking was directed at children, federal agencies meant to protect workers and consumers ended up working for the companies, and corporations worked with congress to oppose laws that didn’t help them. We will write a custom essay sample on Fast Food or any similar topic only for you Order Now The â€Å"American world view† is embodied in fast food because it takes advantage of those who don’t know any better. Chapter 1 The element of car based restaurants like the ones started in Southern California encouraged the spread of fast food because they had good food, became successful, and were very popular among young people. Chapter 2 Disney and Kroc were similar because they both used science to sell their products, made up famous mascots to sell products and both focused selling to kids. They were different because Disney founded his company, and Kroc bought his, they sold different products, and Kroc wasn’t involved in politics, while Disney was. Their companies cooperated when McDonald’s agreed to sell Disney toys and Disney agreed to allow McDonald’s in Disneyland. The fast food industry started with billboard ads to attract kids and evolved to adverting every where, from TV, to the internet, to school hallways. They also make the restaurants themselves fun for kids with play places and selling toys so they want to go more, and even as adults bring their own kids. Personally, I don’t think it is ethical to advertise in schools because it fast food is unhealthy and kids should be learning that, not that the burgers at McDonald’s get and A in taste. Chapter 3 Most employees of fast food restaurants ate teenagers because most are willing to work long hours with little pay. Fast food corporations relentlessly stop their workers from unionizing by doing things like integrating workers with information about a possible union with lie detectors, or closing locations with unions and opening new locations near by. Working conditions at fast food restaurants are unsafe. Typical dangers the employees face ate slips, fall, cuts, burns, and robberies. Problems are dealt with by increasing security with cameras or more parking lot lights. If I worked at a fast food restaurant and I injured my self, I might not tell my manager because I could loose my job because they could blame me for the injury. Chapter 4 The advantages of starting your own business is if it is successful, you could get a lot of money, not to mention you are your own boss so no one besides the government tells you how to run your business. The disadvantages are the business could be unsuccessful and you could loose a lot of money. The advantages of working for someone else are you do not have to make too many tough decisions. The disadvantages are you will not make as much money as your boss, and you may not like your boss for whatever reason. Some legal issues that fast food franchises have been involved in are the Coble’s Bill which makes franchises obey the principles other companies follow. The Subway fast food franchise was involved in the SBA which helps restaurants by giving them government funds. Subway got involved and made it so they would get extra money. Chapter 5 Family farms are disappearing because industry farms take all the business and close family farms because they have no one to sell to. there are only a few small potato farms left because industries take up all the land and business. The take-over of agricultural farms effects communities because local farms go out of business and communities become dependent on the corporate farm. Chapter 6 Development and fast food farms take land and effects cattle pastures because there is less land for the cattle to graze. Since most cowboys and ranchers have gone out of business, they have become irreverent in today’s culture. The government set up the Sherman Antitrust Act and a congressional investigation in the meet packing industry to help ranchers. Later, the Reagan administration allowed the top four meat packing firms to merge and they took over the cattle markets. Corporate domination affected family farms by forcing them to work for them or go out of business. Self-reliance is still a viable goal for Americans, but has become very difficult because of big corporations. The fast food industry makes chicken farmers work for them or they would get no business. In farm culture, the land is a tangible connection to the past, meant to be handed down and not sold. To native Americans, the land meant life and prosperity. In traditional Irish culture, the land is a link to past generations and to loose the land meant to fail your relatives. Their concept of land is similar to the American concept. Chapter 7 The demands of the fast food industry changed towns by making is so almost everyone ends up eating fast food because the industries are aloud to put their restaurants wherever they want and advertise as much as they want until the town’s economy runs on the fast food restaurants. Chapter 8 Meatpacking is dangerous because of the machines and rarely cleaned cutting tools. Since a meatpacking manager’s bonus is based in part on injury rate, many injuries go unreported and the worker is either given an easer job to takes time off to recover. Chapter 9 The meat packing and meat processing industry has been a spreader of disease because the animals are not screened well enough or sick workers spreading disease on the animals. After reading about the pathogens in hamburger meat, I am concerned about food poisoning in fast food. E. coli is not common in restaurant food, but is likely to be in hamburger meat. Chapter 10 Many Americans are obese because of lack of information and improper food laws. Fast food probably plays a big part in obesity because it provides unhealthy food to almost every where. Americans are probably more obese than other countries because fast food started here. Fast food companies increase the size of their meals to effect the calorie count look better for the per serving part. This effects American health because it is misguiding and you eat more than you thought you were going to. People in other countries do not want fast food because they have seen its effect on America. Epilogue The free market Schosser talks about leaves workers unprotected with little interference from the government. In the quote, Schosser is referring to the free market. I agree to what Schlosser says on 216. I believe the government needs to work harder to protect both the workers and consumers of fast food. At the end of the Epilogue, the author remedies his criticisms with the fact that it is a persons choice to eat want. Afterword Mad Cow disease is a disease that slowly destroys the brain and can be spread through hamburger meat. It can be controlled by feeding cows grass instead of corn and hormones, and inspecting the meat better. Cattle get infected by it because they stand in the dung of an effected cattle. It is a very serous threat to humans. How to cite Fast Food, Papers

Office of Auditor General

Questions: Question 1 You ,the auditor, attended the inventory count (stocktake ) of your client Smith Equipment and observed the following during the count :1. Warehouse staff counted specific areas of the stock as determined by the warehouse supervisor ;staff members ,including the warehouse supervisor , were allocated their own area to count on their own.2. Several blank sheets of paper were issued to each member of staff doing the counting.3. Staff were instructed to write down the stock description and number counted .4. Staff were told to write the stock quantities in pencil on the sheets to ensure errors can be corrected .5. Any staff that completed a section early were allocated to another area to help out one of the other staff .6.The supervisor collected all sheets at the end of the count to finalise the stock count .Required :Identify the weaknesses in the stocktake procedures above and identify how they could be improved.Question 2You , the auditor , have spent 5 years as an auditor . In this time you have come across numerous errors in performing bank reconciliations . The following are some of these errors:1. An unreconciled item of $340 was on the final bank reconciliation of the client and was deemed by the client to be immaterial.2.Two deposits totalling $4070 relating to accounts receivable were collected on 3July ( 30 June year end) but recorded as cash receipts on 30 June.3.An amount from an associate company of $40,000 was banked 2 days before the end of the year in the clients bank account and then paid back 1 week after the end of the year .4.A cheque for $6,000 was omitted from the outstanding cheque list on the bank reconciliation at 30 June . It cleared the bank on the 14 August .5.A bank transfer of $20,000 was included as a deposit in transit at 30 June in the accounting records.Required :(a) What control should be implemented to reduce the likelihood of each of the above?(b) What is an audit procedure to detect or prevent each of the above? Q uestion 3The following is an extract from a working paper containing the results of the tests of controls in the accounts payable area: Test Result Conclusion Selected a number of supplier invoices and checked that the pricing and discounts have been reviewed and authorized by the purchasing manager . Six out of 50 invoices tested had not been authorized Incorrect discounts were recorded for these invoices. A follow up of the four incorrect invoices did not highlight a pattern or specific reason for the errors. Accepted as the errors in the discounts claimed were immaterial . Required:(a) Identify the key assertion addressed by the test procedure .(b) Provide an explanation as to why the conclusion reached is appropriate or inappropriate.(c) Outline the key control procedure that you believe needs to be performed. Answers: 1. While audit of the balance sheet of the company there are few items those needs to be looked and audited with better applied analytical and substantive procedures of the same. The responsibility of Inventory control lies with the manager of the warehouse of the location. The Manager must ensure that the staff members who are involved in stocktaking must aware of the established procedure which needs to be followed in stock taking. He is responsible for proper co-ordination between the staff member and also have the responsibility to complete the stock audit. However, it is duty of the auditor to visit the stocktaking site to determine the effectiveness of the stock taking. The slow moving inventory in a company. There are many cash dealings which get interrupted due to delay in stock being converted back into cash.The main intension and objective of Stocktaking is as follows:a) To verify the accuracy of stockb) The Stock valuation as stated in the financial statement must be suppo rted by the physical verification of stock.c) To verify the weakness in the control and custody of stock.d) To disclose the possibility of Stock, theft or loss. (Smith 2013)In the given case auditor has attended the stock taking of Smith Equipment and certain discrepancies has been found by them which is described as follows: SI.No. Weakness Improvement Recommendation 1. Only specific areas were counted which was not correct as supervisor may have some personal interest in the same. However, it is duty of the Warehouse manager to check all the area has been covered and no area has been left and physical verification of every item has been done properly 2. Issuance of blank sheet to each member of staff doing the count Instead of Issuing blank sheet to the stocktaking staff stock take scanner should be allocated to stock taker which will be used by them in stock taking along with the stock taking instruction. This brings better internal control and chances of error and loosing blank sheet is also low. 3 Use of pencils allowed The corre3ction scope should ot be given to the stock takers as this might ensure problems in test checking. 4. Staff Were Instructed to Write down the stock description and number counted Instead of giving this type of Instructor stock scanner as stated above should be given to each staff so that there is less chances of error and it will bring more accuracy. However, there is certain more recommendation which helps smith Equipment in better stock undertaking. This is as follows:1) Before starting Stock date all the possible area and the product must be identified.2) Meeting must be held with the staff member who will help in stock taking to ensure that they should know exactly what they have to do and how to do.3) Any Question or confusion of the Staff member must be resolved and any suggestion which helps in better stock taking must be implemented.4) Whenever any discrepancies noticed the same product must be recount for reconfirming the said discrepancies.5) All the staff member engaged in the stock take must be properly guided by the stores manager during stock taking.6) Stock Scanner must be provided to every staff member for better and more accurate stock taking.7) Any obsolete , damaged or expired product which has been noticed during the physical verification must be reported.8) Stores Manager must ensure that the obsolete materia l must be removed from the store and proper recording has been done.9) Physical verification report should be made and it need to be submitted to the external auditor.10) Before submitting the report to the External Auditor report must be discussed internally with the management so that there will be less changes of error. (Jacob october, 2012)2. Control over the bank reconciliation ensures that all the cash transaction has been properly recorded in the books of accounts for a given period of time. Bank reconciliation also ensures the accuracy of the Financial Statement. With the help of bank reconciliation any omission of transaction in the books of accounts can b easily detected irrespective of the reason that where omission is due to fraud or error.However to ensure less changes of error in the Bank reconciliation one should implement the following procedure to reduce the chance of Error. This are described as follows:There must be segregation of duties between the bank reconcili ation between the two departments i.e. between accounts department and payment department. If same person are engaged in same activity then there is more chances of fraud. Bank reconciliation must be done by the person other than clerk who are in charge of transaction such as receipt, billings and account payable. The reconciliation clerk who is engaged in bank reconciliation must ensure that he has collected all the cancelled cheque and it has been properly dealt in accounts.1) Even a small amount of un reconciled items create a doubt in the mind of the auditor regarding the accuracy of accounts and existence of fraud in the company. In the given situation Item of $340 remain un reconciled which are treated by the as immaterial. The client must ensure that from now onwards all the accounting entry should be don on daily basis and all the vouchers should be signed by the Manager for proper control.2) To reduce the chances of incorrect recording of account receivable, client should e nsures that the entire credit voucher must be signed along with the supporting and then entry will be done in accounting system.3) The Company may adopt the policy not to deposit the associate company money in own account in order to reduce complexity.4) The omission of certain items from Bank reconciliation is serious issues. This even creates doubt about the correctness of bank reconciliation. In order to reduce such type of situation, the client may increase the frequency of reconciliation in order to ensure correct reconciliation process.5) Recording of bank transfer as deposit is also an serious issue, this shows that accounting clerk is completely irresponsible and he must be warned that if the same continue, then he may be fired from the company. (Team n.d.)b) Audit procedure to detect and prevent each of the above case is as follows; 1) Auditor should compare the bank cancellation date with bank reconciliation. 2) Bank Confirmation should be taken from each bank with whom th e client transit.3) Balance of client bank reconciliation need to be confirmed with the balance of bank confirmation.4) Minutes of the Board meeting and loan agreement should be reviewed in order to ensure that all the interest bearing deposit has been properly dealt with in the accounts.3. a) Key Assertion Addressed by the Test Procedure is as follows:The assertion of the management in the given case is to prove that whether the discount bills are being passed with proper authorization of the managers and whether the entries recorded are free of defaults. The prices charges by the supplier is being authorized by the orders as approved by the purchase manager and it helps in understanding the materiality of the issues if any that arise in the course of test.The management wants to have a check on these areas to assure that all of these are correct. b) The Conclusion reached by the Client is not appropriate as it lacks control in the organization. Better policy is to identify the rea sons for such mistake that why such error has been occurred whether the error is un-intentional or due to some fraud. With increase in volume of work in the organization, there is more chances that the error will also increase and more unnecessary discount will be given to the customer which results to financial loss of the company. However, if the error is due to billing software used by the company then the company need to talk with the software company regarding up -gradation of the software so that these type of situation can be avoided and if required the company should need to change the current software and purchase billing software of another company. (James n.d.)c) The Key Control procedure that need to be performed by the company is as follows:1) If the company has manual billing system then that need to be computerized.2) Discount for each and every item needs to be properly updated in the system and the same should be properly checked.3) Dual checking of invoice should b e done for some time once the invoice is generated from the system and second at the cash counter by the cash personnel.4) Responsibility should be assigned to each personnel to periodically review the discount percentage which has been updated in the system (General 2015). Bibiliograpy: General, OOA 2015, Office of Auditor General, https://audit.wa.gov.au/reports-and-publications/reports/across-government-benchmarking-audits/timely-payment-invoices/. Jacob, M october, 2012, 'Stocktake of Rgional Research', p. 30. James, 'Substantive Tests of Transcation and balance', p. 60, https://novellaqalive2.mhhe.com/sites/dl/free/0074711709/90089/sample_ch10.pdf. Smith, H 2013, myob.com.au, https://myob.com.au/blog/7-steps-to-a-successful-stock-take/. Team, O, Opentution.com, https://opentuition.com/wp-content/blogs.dir/1/files/group-documents/15/1289882056-E.AuditEvidence.pdf.

The Magna Carta and the Constitution free essay sample

Magna Cartas original version which states that the king should not ignore or violate the traditions, customs or laws and could not take any arbitrary actions against his subjects. l Magna Carta provides for rule of law, ensures fairness tOf3 0T laws, contalns commitment to Oue process 0T law ana gives respect Tor economlc rights. While these rights were the privileges given to barons in England by way of declarations in Magna Carta, the founders of the U. S. drew inspiration from Magna Carta and made these rights applicable to all the citizens of America and became part of the Bill of Rights. Magna Carta is therefore a source for the U. S. Constitution. The Bill of Rights 1791; which representing 10 amendments as part of the 1st amendment to the U. S. Constitutions. Clause 39 of Magna Carta provides that no freeman shall be punished except by lawful Judgment by his peers or by the laws of the land. We will write a custom essay sample on The Magna Carta and the Constitution or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This was to prevent the King to deliver sentences without the authority of law. The U. S. Constitution provides for rule of law by which no person is above the law. In this context both, Magna Carta and the U. S. Constitution are similar. Whereas the Magna Carta was issued by the Monarch, the U. S. Constitution was given by Americans unto themselves. The 14th Amendment to the U. S. Constitution includes the stipulation of due process, this provides for fair trial before depriving any person of his life, liberty or property. The trial is what is meant by due process. Again it must be a fair trial as part of the due process. In The Magna Carta, the due process of law is known by law of the land and legal Judgment of peers. In order to constitute due process, there should be a right to fair and public trial, right to be present at the trial, presence of an impartial Jury, right to be heard as part of ones own defense. Besides, the laws must be in written form, taxes must be for only public purpose, and property can be taken only for public purpose with due compensation. In this way The Magna Carta pales in comparison due to not being as descriptive as the U. S. Constitution for the meaning of due process. Both Magna Carta and the U. S. Constitution require that laws shall be fair and discriminatory. Thus, Magna Carta and the U. S. Constitution share many things in common. Magna Carta of 121 5 was a bold initiative of the then King, without which the U. S. Constitution would have taken still longer time to be what it is today.

DOCTRINE OF LIS PENDEN S Essays - Lis Pendens, Real Property Law

DOCTRINE OF LIS PENDEN S Essays - Lis Pendens, Real Property Law DOCTRINE OF LIS PENDEN S INTRODUCTION The broad principle underlying S. 52 of the Transfer of Property Act is to maintain the status quo unaffected by the act of any party to the litigation pending its determination-even after the dismissal of a suit, a purchaser is subject to lis pendens, if an appeal is afterwards filed-if after the dismissal of a suit and before an appeal is presented, the lis' continues so as to prevent the defendant from transferring the property to the prejudice of the plaintiff . MEANING The term Lis means an action or a suit, Pendens is the present participle of " pendo "meaning continuing or pending. Lis Pendens literally means a pending suit ; and the doctrine of Lis Pendens has been defined as the jurisdiction, power or control which a court acquires over property involved in a suit pending, the continuance of the action ., and until final judgment therein. Exposition of the doctrine indicate that the need for it arise from the very nature of the jurisdiction of Curt and their control over the subject -matter of litigation so that parties litigating before it may not remove any part of the subject matter outside the power of the Court to deal with it and that make the proceedings infructuous . The Supreme Court in its recent decision in T.G. Ashok Kumar v. Govindammal explained the concept in the following terms; 9. Section 52 dealing with lis pendens is relevant and it is extracted below: "Transfer of property pending suit relating thereto.During the pendency in any Court having authority within the limits of India excluding the State of Jammu and Kashmir or established beyond such limits by the Central Government of any suit or proceeding which is not collusive and in which any right of immovable property is directly and specifically in question, the property cannot be transferred or otherwise dealt with by any party to the suit or proceeding so as to affect the rights of any other party thereto under any decree or order which may be made therein, except under the authority of the court and on such terms as it may impose." OBJECT OF THE DOCTRINE The object of S. 52 is to subordinate all derivative interests or all interests derived from parties to a suit by way of transfer of pendente lite to the rights declared by the decree in the suit and to declare that they shall not be capable of being enforced against the rights acquired by the decree-holder. A transferee in such circumstances therefore takes the consequence of the decree which party who made the transfer to him would take as the party to the suit. The principle of lis pendens embodied in Section 52 being a principle of Public Policy, no question of good faith or bona fide arises. Such being the position, the transferee from one of the parties to the suit cannot assert or claim any title or interest adverse to any of the rights and set interests acquired by another party under the decree in suit, the principle of lis pendens prevents anything done by the transferee from operating adversely to the interest declared by the decree. In Jayaram Mudaliar v. Ayyaswami ( AIR 1973 SC 569) this court held that the purpose of Section 52 of the Act is not to defeat any just and equitable claim, but only to subject them to the authority of the court which is dealing with the property to which claims are put forward. This court in Hardev Singh v. Gurmail Singh (2007) 2 SCC 404 held that Section 52 of the Act does not declare a pendente lite transfer by a party to the suit as void or illegal, but only makes the pendente lite purchaser bound by the decision in the pending litigation HISTORY The doctrine is of ancient lineage .Originating in the Civil Law, it seems to have been operative at an early date as the basis of the common law rule by virtue of which the judgment in a real action was regarded as over- reaching any alienation made by the Defendant during its pendency. In the course of the doctrine was adopted

Rule-Making Process Research Paper Example | Topics and Well Written Essays - 1000 words

Rule-Making Process - Research Paper Example The business rulemaking process promotes business effectiveness as well as efficiency. It also aims at promoting innovation, flexibility and technology integration. This is the reason why the public has to strain for the attainment of process objectives as it improves processes which include a process to define, improve and measure the optimization of rulemaking. The above study analyses how the stages involved in the rule-making process are able to afford clientele groups with opportunities to influence the process in their favor. In public administration, the rule-making process involves the executive and independent agencies that create regulations. The legislatures first formulate policy mandates and agencies follow creating detailed regulations. Rule-making process is the means where government regulations are created which include policies on environmental protection, workplace safety, and food safety. To achieve the rule-making process, it is necessary to have a direction on w hich to follow. The first stage includes the design stage. Having a good design which involves legislation is important as it reduced the number of problems that may occur in case the state wants to improve the process in future. This stage involves passing a law and creating a new administrative agency. It also aims at ensuring that the right design is implemented which include determining the process to be improved, forming the management team to work on the process, defining effective roles and responsibilities of every team member and finally identifying the objectives, goals and the expectations of every clientele group involved. The second stage is the releasing of advance notice of the proposed process. This makes it easy in defining the right rules to be implemented to the public. This involves publishing of the initial analysis of the matter for the public to input major issues. Any information regarding the proposed rule is provided to the public and they are advised to re view for any change. The third stage is where the agency publishes the proposed rule by use of the regulatory language in the Federal Register.

Operation Barbarossa Essay Example | Topics and Well Written Essays - 500 words

Operation Barbarossa - Essay Example Role of HUMNIT in the Plan Bodyguard Through Plan Bodyguard, the Allied Forces had acquired a deception plan that could support their invasion of Normandy. The human intelligence was applied in execution of this plan in inducing the Germans to make planned and strategic faulty dispositions before the onset of Operation Anvil and Overload. The human intelligent was important in making the Germans confused, hence causing them to misallocate their resources into territories that encountered little threat of attacks form allied forces. Under the bodyguard, the operations were divided into three distinctive sub-groups, the Zeppelin, Fortitude North and South respectively. Application of Signal Intelligence in execution of Plan Bodyguard Signal intelligence in Plan Bodyguard was vital in masking the Operation Overload. Through signal intelligence, the Allies located strategic bombing sites that helped champion their strategic bombing campaign. The Allied used signal intelligence to acquire stories that they could sell through their acquired diplomatic leaks. In an instance of that magnitude, they announced about the planned Soviet attack backed by the Allied Forces. This intelligence confused the German forces, as this coincided with their dates of attack against the Allied Forces. Balancing secrecy and openness in a democracy In the United States, many challenges have been encountered in balancing secrecy and openness in line with democracy. According to the general US perception, deceit is detestable in all activities.

What Is Morality Essay Example | Topics and Well Written Essays - 1000 words

What Is Morality - Essay Example ring of pension plans or their complete termination; reductions in health care benefits; and wage stagnation in spite of increased productivity† (Feldman, 2007). Indeed, it is through these ethical issues that a redefinition of the essence of business is important. Specifically, it is crucial to ask: (1) is the essence of business purely based on profitability and growth? And (2) should businesses be regarded as moral agents (and therefore be responsible for their actions)? While it is true that profit drives the business as it sustains business operations, it is not the sole determinant of profitability. Unfortunately, most businesses today solely focus on serving one type of stakeholder—their end consumers—that they fail to consider their other publics: employees, society, and the environment. In this regard, the implementation of the aforementioned ways to cut down costs may actually end up costly for the company, as these may lead to: (1) bad publicity affecting product loyalty; (2) lawsuits being filed to address improper employee treatment; and (3) investment withdrawals by image-sensitive shareholders. All of these examples reinforce the notion that ethical business practices can indeed translate to business profitability. However, it must be pointed out that viewing ethicality as a mere tool for profitability remains conceptually ambiguous, especially when attempting to shed light on their stark differences. This is why revisiting the essence of business is significant in order to glean insights on what the business is and how it should act. To begin, it must be made clear that a company is a ‘separate and self-determining’ entity since it is comprised of human beings who are completely capable of controlling the business—through culture creation, strategic business alignments, and operations planning—in order to achieve its goal of profitability. In this regard, any company is said to be free, and is therefore given its rights and

Strategies to Sustain Competitive Advantage

Strategies to Sustain Competitive Advantage Q1: Using an appropriate model, evaluate the business model of a company of your choice, describing how the company differentiates itself from its competitors and sustain competitive advantage. 1. Executive Summary Cummins started off as diesel engine manufacturing company since 1919 and now growing as â€Å"power† leader in the world. Cummins expand network through company- owned distributor, independent distributor and dealer to serve customer globally. In 2009, Cummins reported net income of $428 million in $10.8 billion of sales [1]. Cummins have been diversifying its business to broad range of products from power generation, filtration technology, turbo technology, fuel system, emission controls and air handling [2]. Due to external pressure and growing market in Asia, Cummins recently setup Centre of Excellent in Singapore focus more on Marine and Offshore market. In this post module assignment, competitive strategy will only focus on Cumminss marine and offshore business. In this PMA, the value curve is based on own industry experiences assumption. However, analysis on financial will based overall Cummins business listed in stock market which named â€Å"CMI†. 1.1. Vision Statement â€Å"Making peoples lives better by unleashing the Power of Cummins† [3]. Cummins believe in by developing new technology will lead to better living for the people. 1.2. Mission Statement Cummins mission statement as quoted below [3] â€Å"Motivating people to act like owners working together† â€Å"Exceeding customer expectations by always being first to market the best products† â€Å"Partnering with our customers to make sure that they succeed† â€Å"Demanding that everything we do leads to a cleaner, healthier, safer environment† â€Å"Creating wealth for all stakeholders.† 1.3. Cummins compare with Industrial leader Figure 1 Financial Analysis CMI Vs Industry Leader [4] Figure 1 shows overview financial analysis of Cummins (CMI) compare within industry leader [4]. Cummins rank 35 among 379 diversified machinery industries in industrial goods sector for market capitalisation. Cummins stock values increase more than triple over the past 3 years and promise future growth with its business strategy [4]. 1.4. Ocean Strategy Ocean strategy has been introduced by W.C. Kim and R Mauborge since 2004. Starting then, this strategy is adopted and implemented successfully in various organisations globally. Recently, Malaysias Prime Minister Datuk Seri Najib Razak shared his experience on Ocean Strategy when dealing with increasing crime in the country [5]. He is using Blue Ocean Strategy as management tools in order to promote thinking out of the box. Key successful activities such as leveraged untapped resources when replaced police with soldier doing patrolling around countrys border and conduct training for new police force in the underutilised army facilities. This initiative save a lot of money from government and promote cross functioning role among government agency [5]. The principle of the ocean strategy is treating market as universe. There are two oceans available in the universe named Red Ocean and Blue Ocean. Red Ocean defined as known competition. In this Ocean, product is already well defined and competitors only able to compete with price [6] .Customer expectation on the product almost generic and not much technology can be developing in this area. For diesel engine in marine and offshore market, the competitors for Cummins include Caterpillar, MTU and Mitsubishi. How Cummins can break trough become market leaders? Cummins apply Blue Ocean Strategy when dealing with its business. Blue Ocean Strategy defines as untapped market which no competition and industries that do not exist at this point of time [6]. This in return will resulting higher profit compare with conventional approach. This clearly shows in W.C. Kim and R Mauborge studys on business launches in 108 companies. They summarize revenue and profit impact of business launches shows in Figure 2. In this study, 86% business launches within own boundaries (Red Oceans) and 14% business launches looking for new opportunities (Blue Oceans) [6]. Red Oceans approach focus on existing customer by improving their product and study shows that this resulted 62% on total revenue and 39% on total profit. In contrast, 14% of the businesses launches by creating blue oceans can bring in higher return which about 61% of the total profit [6]. Cummins spend heavily on research and development for past 5 years as shown in Figure 3. In 2010 alone, Cummins invest 414million in new technology development [2]. One of recent Blue Oceans initiatives is setting Marine and Offshore Centre of Excellent in Singapore. This business focus on the â€Å"Packaging† instead of selling conventional type of â€Å"bare diesel engine† like other competitor such as CAT, MTU and Mitsubishi. Figure 4 shows pictorial view on the value added components into bare diesel engine 1.5. Strategy Canvas Figure 5 shows strategy canvas of the marine and offshore diesel engine. X-axis represents critical success factors of the markets competition and Y-axis correspond to values perceived by marine and offshore customer. Marine and offshore is a mature and establish market. Engine makers always compete with price, image, brand, delivery, product performance and service availability. Cummins performs averagely in critical successful factors. However, in order to compete in the competitive market, Cummins break through conventional way by creating new team to focus on product value added specifically for marine and offshore customer. Cummins applied Blue Ocean strategy. Figure 6 shows Red Ocean strategy from others diesel engine maker and Blue Ocean strategy from Cummins. Q2: Using either Porters generic strategies or the Strategy Clock, identify examples of organizations following strategies of differentiation, low cost or low price, and stuck-in-the middle or hybrid. How successful are these strategies. 2. Porters 5 forces generic Strategies â€Å"Using the five forces framework, creative strategists may be able to spot an industry with a good future before this good futureis reflected in the prices of acquisition candidates† Michael Porter [7]. Porters five forces: Threat of New Entrants: Analyse potential new comer to market is important to understand potential future competitors Bargaining Power of Buyers: Buyers is the party that create demand for industry, understand buyers requirement will help to maintain competitive advantages. For example, bargaining power of buyers is high if product is standard. Threat of substitute products or service: Buyers always look for alternative or cheapest way to get products or service. Substitute product can bring the overall industry price lower Bargaining Power of Supplier: Supplier supply raw material or service to manufacturer. Bargaining power of supplier is high when to many buyer and less supplier in the market Rivalry among existing competitors: Current fast moving industry, its important understand the strategy of existing competitors. Example: How competitor gain competitive advantages or product differentiation. Porters 5 Forces allowed the company undertand and analyse own industry struture and futher help the management to decide on companys strategy. According to Porter, organisation is able to gain competitive advantanges by strategies the company using one of the â€Å"Porters Generic Strategies† as shown in Figure 8; 1) Cost Leadership, 2) Differentiation, 3) Focus [8]. 2.1. Cost Leadership Strategies Cost leadership strategies emphasize on low cost in company strategies. Company will offer low per-unit cost product or service to customer that sensitive to price. In order to become low cost provider, company can practise integration strategies (backward, forward and horizontal). There are few factors that will affect the strategies include economies of scale, learning curve, productivity, company structure, relationship with supplier and quality control. Several example organizations that practice this are Wal-Mart (general merchandiser), Air Asia (budget Airline) and Macdonalds (Fast Food) [9]. In this PMA, I will use Air Asia as example to study its business model and look into company successful factor. Air Asia strategy as illustrate in Figure 9, the company mission is to continue to be the markets carrier low cost provider. In order to compete with other aircraft carrier and achieve company vision for â€Å"Lowest cost airline†, Air Asia implement a few strategy to reduce operation cost. Strategy implemented as per below: 2.1.1. Keep operation cost low- NO frills In order to compete in this competitive market, Air Asia able to keep operational cost low by implementing few â€Å"NO†s in the strategy [10]: NO meal: No food or drinks will be provided free in the in-flight service. NO frequent flyer program: NO Membership or rewarding program which commonly used for others airline like Kris flyer for Singapore Airline and Skymiles for Delta airline. NO Seat assignment Ticket: In order to keep administrative cost low NO Entertainment: NO news paper and entertainment system such as movie, games and music. No ticket : Ticketless replaced conventional type printed ticket No waiting lounge: NO lounge provide in the airport 2.1.2. Single air craft fleet In order to streamline the operation, Air Asia phasing out its 14 Boeing B737 in 2010 and replace by only operate single air craft which is A320. Few advantages of using single aircraft as stated below Keep inventory cost low Saving cost in service and maintenance such as keeping same model of spares parts. No duplicated resource due to difference Air Craft experience needed Reduce time and training cost due to only one model. This allowed the company avoid going to through the expensive â€Å"learning curve† process and also may dissatisfied demanding customer. Michael and Nikos study on the organisation learning curves for customer dissatisfaction across airlines. They plotted estimate U-Shaped learning curve as show in Figure 10 and show evident that complaint rates followed U-shaped function of experience Able to increase fuel efficiency and improve productivity 2.1.3. Simplified distribution system Air Asia design simple user friendly system for customer to book and check- in their ticket. Customers are able to check in using own mobile as shown in Figure 11. This ticketless system is able to reduce waiting time for customer queuing to check- in at the airport counter. 2.1.4. Point to point network (≠¤ 4 hrs) All Air Asia flight is running by point to point network within 4 hours radius or less as its business model. This model only carry passenger from point A to point B without any connecting flight. This in order to keep operation cost simple in order to reduce costs [10]. 2.1.5. Optimum Aircraft Utilization Another way to keep operating cost low and maximizes profit, Air Asia increase productivity by optimise flight utilisation. Air Asia is the fastest in the region by achieving 25 minute turnaround time. Air Asia is able to achieve equal or more than 75% for last 5 years on the load factor. Once, Air Asia achieve close to 100% load factor for Bali Perth route. Load factor is defined by AirAsia as â€Å"numbers of passengers as a percentage of number of seats flown† [10]. On top of that, Air Asia applies â€Å"Tier based† system for ticketing which depend on supply and demand. When demand is low, the price is low. When demand is high the ticket price will also go high. This system is efficient especially during low season allowed Air Asia maintain the reasonable high percent load factor, 2.2. Differentiate Strategies Differentiation strategies offer service or product which unique perceived by customer. Differentiation strategies do not guarantee good payback especially current standard product offered in the industry is more than enough to meet customer expectation. There will a risk on implementing this strategy and need to study carefully on customer requirement before implementing. Product value added, extra servicing, products flexibility and better compatibility are some of the features that can create differentiate in the industry. Cost is not an issue in this strategy; hence company can demand higher price if customer strongly attached to offered differentiation features. Typical move in this strategy is product development. Organisations that apply these strategies include Apple (Lifestyle product), Raul Lauren (Apparel) and Maytag (Home appliance) Apple is applying differentiate strategies compare with other competitors in the industry by selling lifestyle product instead of conventional electronic gadget. In first 6 months of 2011, Apple spends 1.2 billion in research and development. This is about 40% increase compare with 2010 [13]. One of the successful examples when Apple launches iPad during 2010 and Steve Jobs defined iPad as â€Å"entirely new category of mobile devices†. Apple sold more than 15 million units worldwide after launching [14]. 2.2.1. Innovative and creativity product Apple is a â€Å"trend leading† company in the market. The company famous in creating innovative products and able to capture a significant market share after launching new products. Apple spends heavily in research and development because the company believe RD are critical for future growth and are able to create competitive advantages 2.2.2. Wide range of software and applications Apple created another successful platform for customer to download software and application. Traditional, example like phone, other competitor just focus on few simple features which only contains game, photography function, movie and some basic feature. By introducing new approach, Apple created â€Å"The App Store†. Now â€Å"The App Store† has more than 350,000 apps available for iPhone, iPad and iPod touch globally. The apps offered wide range of application from games, entertainment, utilities, social networking, music and others. In Jan 2011, Apple announces that more than 10 billion apps have been downloaded . 2.2.3. Apple store Unlike others competitors store which only focus on products price and feature, Apple differentiate by giving customer different shopping experience in the store. Apple design Apples retail store to give the patrons good impression of stylish, clean, fashion and stream-lined. The product like i Phone, iTunes and etc will placing in a place that customer can try out the features and application. 2.2.4. Provide good service and maintenance Apple provides good service respond compare with others competitors like Samsung and Nokia. In Singapore, Apple provides one to one exchange for i Phone if there is defect and still under warranty. This is different from some of the competitors, depend on the level of repair, some will take about 2 to 3 weeks. This will create some issue for some consumer that only has one hand phone. 2.3. Focus Strategies Focus strategies offers product or service to fulfil the requirement for targeted groups of customer in the industry [9]. Focus strategies can be categorized into 2; Focus cost leadership which focus on low cost solution in narrow market and Focus differentiation provide customised product or service to niche market [16]. Market penetration and market development can be use when applying focus strategies [9]. Focus strategies beneficial when competitors are not able to support on unique requirement of certain group of customer. Organisation which pursuing this strategies include IKEA (Furniture), Ferrari (Automotive) and Federal Express (logistic) 2.3.1. Focus Cost Leadership Strategy IKEA is the Swedish global furniture company that applied focus cost leadership strategy in their business strategy. IKEA offering wide range of home furnish product with low price so that many people can afford to purchase. In order to achieve the strategy, IKEA apply below concept: 2.3.1.1. Design and develop base on price In order to keep competitive price, IKEA design and develop product base on price. The price is â€Å"fix† even before the product is launch. The designer will have to work directly with supplier to ensure meeting low cost by optimised productivity, material efficiency and process improvement [17]. 2.3.1.2. Reduce logistic, handling and operating cost In order to reduce logistic, handling and operating cost, IKEA designer always consider flat-pack transportation and self-assembly during design and development phase. Flat-pack furniture is often delivered in multiple sub assemblies together with simple instruction manual and required customer to perform self assembly. This modular concept is able to save transportation, handling and operating cost. For example, assembled furniture tends to be more bulky and is more expensive to store in warehouse and transportation. Besides, that, IKEA is able to save operating cost by reduce one â€Å"Assembly† process in production . 2.3.1.3. Self-Service in IKEA Store In order t keep the operating cost low and reduce the needs of sales assistance, IKEA design the flow of store layout and display the product effectively by using â€Å"actual room† concept. For example, sofa is placed in â€Å"living room† section and bed is placed in â€Å"Bed Room† section. All the furniture is clearly labelled and useful information like dimension is easily located in the display product [17]. 2.3.2. Focus Differentiate strategy Ferrari is applying focus differentiate strategy by develop high performance car within automotive industry. Ferrari focus on high end consumer compare with other automotive competitors like Honda, Toyota or Ford which target more broad customer. Below is the strategy for Ferrari: 2.3.2.1. New Way of Purchase Car Ferrari compete created innovative approach by introduce new way of purchase car â€Å"Premium Ownership Program† to serve its target customer. This program include insurance, maintenance, warranty , Ferrari tailored made driving course and pit stop service which provide the customer â€Å"mind free† after owning and driving Ferrari car [18]. 2.3.2.2. Innovative Technology Ferrari developed own software to meet customer service expectation such as rapid response times, up to date database and personalise customer service. One of the latest features such as, the customer can view the look of the vehicle and change the preference in â€Å"Service configurator system† even in pre-order stage [19]. 2.3.2.3. Best Dealer Ferrari believes choosing the right strategic partner or dealer is the right way to serve the customer. In order to motivate the dealer, Ferrari created prestigious award Podio Awards for supplier or business partner recognition. 2.4. Stuck in the middle or Hybrid Strategies Porter does not recommend â€Å"Stuck in the middle† or Hybrid strategies if the company want to achieve above average performance in the industry. Company must choose either one of the strategy in the Porters Generic strategy. He claimed that it is difficult for a company to strategies the business to produce low cost product but still remain unique perceived by customer [8]. However, Rodney Goon argues on Porters theory and commented some of the company such as Singapore Airline (SIA) are able to success using â€Å"Hybrid strategy†. Figure 12 shows business strategy applied by SIA which plotted by Rodney [21]. Singapore Airline have been awarded 2nd place in World Top Airline in 2010 by Skytrax in Hamburg [22]. Figure 13 shows main operating cost for SIA. Top 3 costs consist of Fuel, Aircraft and People [23]. In order to achieve competitive advantages, SIA apply below approach: 2.4.1. Become Market Leader Differentiation Strategy SIA founded in 1972 started as small airline company and now evolve become the world trend leading company for Airline industry. SIA become market leader by setting trend started since 1970s when introducing headsets, drink and choice of meals in Economy Class. Figure 14 shows overview on SIA trend setting for more than 39 years in the industry. In 1991, SIA introduce satellite- based telephone to enable passenger to call to ground during flying. In 1998, in order to improve the quality and standard of in-flight meal, SIA formed International Culinary Panel which involves renowned chef from all over the world. By doing this, the passengers are able to enjoy world class cuisine even during travelling. In order to improve customer service satisfaction, SIA introduce in-flight entertainment system named Krisworld which include Audio and Video system. Passenger can watch movie, listen to music and playing game during flying. In 2004, SIA reach another milestone by flying world longest non-stop flight from Singapore to New York (Newark). In 2007, SIA flying new Airbus design A380 which is world largest passenger Aircraft from Singapore to Sydney . 2.4.2. Brand â€Å"Singapore Girl† Differentiation Strategy SIA successfully improve its service compare with others competitors by creating unique iconic image for SIAs air stewardess as â€Å"Singapore Girl† and promote â€Å"Youre a great way to fly† started in 1972. This iconic brand is famous of caring, elegant and good looking girl whom will provide good service for the passenger during on board the plane. â€Å"Singapore Girl† has continuously won many awards in Airline and Travel Industry over the years . 2.4.3. Low Cost -Cost Leadership Strategy â€Å"Everything behind The Scenes Is subject To Rigorous Control† quoted by Rodney . SIA spend heavily on the area that customer can be seen as discussed above in order to remain premium in the industry but cutting cost for area that behind the scene in order to remain cost compatible. Total cost for Singapore airline is about 14.2% is the lowest in the market compare with other competitors like American Airline which labor cost is approximately 31% of total operating expense . Other than that, average price per aircraft purchase is less than other airline provider. This is due to SIA is the market leader in trendsetting and always working with aircraft builder like Airbus when there is new product launching. First purchase in world for A380 allowed SIA command a better purchase price. Q3: What are the major advantages and disadvantages of an integrative strategy? 3. Integrative strategy Organisation is able to gain competitive advantages by using integrative strategy. Integrative strategy can be categorized as vertical, backward, forward and horizontal integration. There are advantages and disadvantages when applying each concept and detail discuss as below: 3.1. Vertical Integration Vertical integration is business strategies which expand its business either through gaining control over company that distribute or selling its product (Forward integration) or taking control over company that provide the raw material for finish goods (Backward Integration). Figure 15 illustrate 4 typical stages for value added chain in PC industry (27). Example for Dell or Hewlett Packard, in order to produce a personal computer, assembly components such as chips, microprocessor and disk drive etc is needed from others manufacturing company (Intel/ Micron). Similarly, component parts manufacturing needs raw material like chemical, metal and ceramic to manufacture the component. Kyocera is one of the suppliers for those materials. Backward integration strategy in this case is trying to taking control over components parts manufacturing and raw material supplier. Whereas for forward integration strategy, PC maker try to gains control over the company that selling or distribute the final product such as OfficeMax and ComUSA [27] This company provide platform to reach end user. 3.2. Forward Integration Forward integration strategy involves increase ownership or control over retailers or distributor and illustrates in Figure 16. One of the effective mean of forward integration is through Franchising [9]. Approximate $2 trillion revenue created annually through franchising business every year globally. This equal to 4th largest Gross National Product in the world [28]. Advantages and disadvantages as discuss below: Advantages: Getting understanding customer better One of the companies using forward integration strategy successfully is Dell. Dell founded in 1984 by Michael Dell with one direction â€Å"selling final products to customer directly† [29]. By doing this, company able to reach end user and getting feedback instantly through companys distributor and retailer without filtering. Low development and training cost By introduce franchising; the company are able to reduce development and training cost. Franchisor will provide training, equipment and product to franchisee. This in order to skip the â€Å"trial error† phase for franchisee and able to help franchisee generate profit with less risk. Example companies like Subway, McDonalds and 7-eleven. Provide better services Company can provide better services through its own controlled network and services. Provide lower cost of sales In order to compete in this competitive world, price of the end product is always one of the critical successful factors for the company. Dell is using this strategy to reduce price bypassing third party involvement such as retailers etc. No mark up from other company in the finished goods Disadvantages: Increase bureaucratic cost Expanding business forward which also means that increase bureaucratic cost for whole value- added chain activities. Due to uncertain demand in current market, it will post some risk to the company Increase Inventory Getting control over distributors or retailer, indirectly manufacturer may have to manage whole product cycle inventory include end products. Company may incurred higher inventory cost if wrongly manage 3.3. Backward Integration Manufacturer need supplier provide raw material in order to produce its end products or service. Backward integration allowed company gain control toward supplier as shown in Figure 16. Advantages and disadvantages as discuss below: Advantages: Getting better quality control Company are able to apply standard quality plan throughout the value chain. This is especially important when dealing with sophisticated components such as crankshaft, piston and turbocharger for engine. By improving the quality of this critical component will increase competitive advantages among the rivals Reduce threat from powerful vendors By increasing control over the vendors, it will reduce threat from powerful vendors. Optimized supply chain â€Å"Keeping track of so many suppliers is onerous† says Mark Shimelonis of Xerox [9]. Nowadays, a number of companies following Japanese firms lead in managing the supply chain to ensure uninterrupted supplies and low prices. Lower structure cost Outsourcing is one of the examples of the backward strategy. Outsourcing strategy will able to reduce cost when company engaging third party specialist that performing charging lower than company own operate value-chain activity. Cummins outsource IT support to India Company and panel design to CMR or Auto Maskin to keep the company structure cost lower. Nike outsourcing its manufacturing plant in China due to lower labor cost [27]. Disadvantages: Technology change Technology change is inevitable in current competitive market. But backward vertical integration may lock a company â€Å"way of doing business† and prevent organisation changes due to technology change. One of the examples is when radio manufacturer acquired a manufacturer of vacuum tube in 1950s to reduce production cost. When, transistors replace vacuum tube in 1960s, the competitor rapidly change to latest technology. However for this radio manufacturer company, the management refuse to change and as the result, lost in the competitive advantages and cause business failure. Thus, backward integration can cause serious disadvantages when trying to match rapid technology change [27] Risk of information loss Increase control over the supplier which mean also potentially important information flow to the supplier. For example, Cummins need to provide important parameter and interfacing information in the engine control module to backward supplier like CMR and Auto Maskin in order to joints develop the engine protection panel. Technical drawing will be shared among backward supplier and manufacturer. Potential high cost Less supplier competition will lead to less efficiencies when produce a product. The backward support company will work in the â€Å"comfort zone† and less initiative. The manufacturer is â€Å"forced† to get the input from â€Å"internal supplier† even there will be some others external supplier can produce lower cost .As the result will cause potentially higher production cost . 3.4. Horizontal Integration Horizontal integration refers to company that use â€Å"single industry strategy† and seeking control over competitor in same market. A number of the company apply this concept as growth strategy. Merger and acquisition allowed the company to expand its core business and technical capabi Strategies to Sustain Competitive Advantage Strategies to Sustain Competitive Advantage Q1: Using an appropriate model, evaluate the business model of a company of your choice, describing how the company differentiates itself from its competitors and sustain competitive advantage. 1. Executive Summary Cummins started off as diesel engine manufacturing company since 1919 and now growing as â€Å"power† leader in the world. Cummins expand network through company- owned distributor, independent distributor and dealer to serve customer globally. In 2009, Cummins reported net income of $428 million in $10.8 billion of sales [1]. Cummins have been diversifying its business to broad range of products from power generation, filtration technology, turbo technology, fuel system, emission controls and air handling [2]. Due to external pressure and growing market in Asia, Cummins recently setup Centre of Excellent in Singapore focus more on Marine and Offshore market. In this post module assignment, competitive strategy will only focus on Cumminss marine and offshore business. In this PMA, the value curve is based on own industry experiences assumption. However, analysis on financial will based overall Cummins business listed in stock market which named â€Å"CMI†. 1.1. Vision Statement â€Å"Making peoples lives better by unleashing the Power of Cummins† [3]. Cummins believe in by developing new technology will lead to better living for the people. 1.2. Mission Statement Cummins mission statement as quoted below [3] â€Å"Motivating people to act like owners working together† â€Å"Exceeding customer expectations by always being first to market the best products† â€Å"Partnering with our customers to make sure that they succeed† â€Å"Demanding that everything we do leads to a cleaner, healthier, safer environment† â€Å"Creating wealth for all stakeholders.† 1.3. Cummins compare with Industrial leader Figure 1 Financial Analysis CMI Vs Industry Leader [4] Figure 1 shows overview financial analysis of Cummins (CMI) compare within industry leader [4]. Cummins rank 35 among 379 diversified machinery industries in industrial goods sector for market capitalisation. Cummins stock values increase more than triple over the past 3 years and promise future growth with its business strategy [4]. 1.4. Ocean Strategy Ocean strategy has been introduced by W.C. Kim and R Mauborge since 2004. Starting then, this strategy is adopted and implemented successfully in various organisations globally. Recently, Malaysias Prime Minister Datuk Seri Najib Razak shared his experience on Ocean Strategy when dealing with increasing crime in the country [5]. He is using Blue Ocean Strategy as management tools in order to promote thinking out of the box. Key successful activities such as leveraged untapped resources when replaced police with soldier doing patrolling around countrys border and conduct training for new police force in the underutilised army facilities. This initiative save a lot of money from government and promote cross functioning role among government agency [5]. The principle of the ocean strategy is treating market as universe. There are two oceans available in the universe named Red Ocean and Blue Ocean. Red Ocean defined as known competition. In this Ocean, product is already well defined and competitors only able to compete with price [6] .Customer expectation on the product almost generic and not much technology can be developing in this area. For diesel engine in marine and offshore market, the competitors for Cummins include Caterpillar, MTU and Mitsubishi. How Cummins can break trough become market leaders? Cummins apply Blue Ocean Strategy when dealing with its business. Blue Ocean Strategy defines as untapped market which no competition and industries that do not exist at this point of time [6]. This in return will resulting higher profit compare with conventional approach. This clearly shows in W.C. Kim and R Mauborge studys on business launches in 108 companies. They summarize revenue and profit impact of business launches shows in Figure 2. In this study, 86% business launches within own boundaries (Red Oceans) and 14% business launches looking for new opportunities (Blue Oceans) [6]. Red Oceans approach focus on existing customer by improving their product and study shows that this resulted 62% on total revenue and 39% on total profit. In contrast, 14% of the businesses launches by creating blue oceans can bring in higher return which about 61% of the total profit [6]. Cummins spend heavily on research and development for past 5 years as shown in Figure 3. In 2010 alone, Cummins invest 414million in new technology development [2]. One of recent Blue Oceans initiatives is setting Marine and Offshore Centre of Excellent in Singapore. This business focus on the â€Å"Packaging† instead of selling conventional type of â€Å"bare diesel engine† like other competitor such as CAT, MTU and Mitsubishi. Figure 4 shows pictorial view on the value added components into bare diesel engine 1.5. Strategy Canvas Figure 5 shows strategy canvas of the marine and offshore diesel engine. X-axis represents critical success factors of the markets competition and Y-axis correspond to values perceived by marine and offshore customer. Marine and offshore is a mature and establish market. Engine makers always compete with price, image, brand, delivery, product performance and service availability. Cummins performs averagely in critical successful factors. However, in order to compete in the competitive market, Cummins break through conventional way by creating new team to focus on product value added specifically for marine and offshore customer. Cummins applied Blue Ocean strategy. Figure 6 shows Red Ocean strategy from others diesel engine maker and Blue Ocean strategy from Cummins. Q2: Using either Porters generic strategies or the Strategy Clock, identify examples of organizations following strategies of differentiation, low cost or low price, and stuck-in-the middle or hybrid. How successful are these strategies. 2. Porters 5 forces generic Strategies â€Å"Using the five forces framework, creative strategists may be able to spot an industry with a good future before this good futureis reflected in the prices of acquisition candidates† Michael Porter [7]. Porters five forces: Threat of New Entrants: Analyse potential new comer to market is important to understand potential future competitors Bargaining Power of Buyers: Buyers is the party that create demand for industry, understand buyers requirement will help to maintain competitive advantages. For example, bargaining power of buyers is high if product is standard. Threat of substitute products or service: Buyers always look for alternative or cheapest way to get products or service. Substitute product can bring the overall industry price lower Bargaining Power of Supplier: Supplier supply raw material or service to manufacturer. Bargaining power of supplier is high when to many buyer and less supplier in the market Rivalry among existing competitors: Current fast moving industry, its important understand the strategy of existing competitors. Example: How competitor gain competitive advantages or product differentiation. Porters 5 Forces allowed the company undertand and analyse own industry struture and futher help the management to decide on companys strategy. According to Porter, organisation is able to gain competitive advantanges by strategies the company using one of the â€Å"Porters Generic Strategies† as shown in Figure 8; 1) Cost Leadership, 2) Differentiation, 3) Focus [8]. 2.1. Cost Leadership Strategies Cost leadership strategies emphasize on low cost in company strategies. Company will offer low per-unit cost product or service to customer that sensitive to price. In order to become low cost provider, company can practise integration strategies (backward, forward and horizontal). There are few factors that will affect the strategies include economies of scale, learning curve, productivity, company structure, relationship with supplier and quality control. Several example organizations that practice this are Wal-Mart (general merchandiser), Air Asia (budget Airline) and Macdonalds (Fast Food) [9]. In this PMA, I will use Air Asia as example to study its business model and look into company successful factor. Air Asia strategy as illustrate in Figure 9, the company mission is to continue to be the markets carrier low cost provider. In order to compete with other aircraft carrier and achieve company vision for â€Å"Lowest cost airline†, Air Asia implement a few strategy to reduce operation cost. Strategy implemented as per below: 2.1.1. Keep operation cost low- NO frills In order to compete in this competitive market, Air Asia able to keep operational cost low by implementing few â€Å"NO†s in the strategy [10]: NO meal: No food or drinks will be provided free in the in-flight service. NO frequent flyer program: NO Membership or rewarding program which commonly used for others airline like Kris flyer for Singapore Airline and Skymiles for Delta airline. NO Seat assignment Ticket: In order to keep administrative cost low NO Entertainment: NO news paper and entertainment system such as movie, games and music. No ticket : Ticketless replaced conventional type printed ticket No waiting lounge: NO lounge provide in the airport 2.1.2. Single air craft fleet In order to streamline the operation, Air Asia phasing out its 14 Boeing B737 in 2010 and replace by only operate single air craft which is A320. Few advantages of using single aircraft as stated below Keep inventory cost low Saving cost in service and maintenance such as keeping same model of spares parts. No duplicated resource due to difference Air Craft experience needed Reduce time and training cost due to only one model. This allowed the company avoid going to through the expensive â€Å"learning curve† process and also may dissatisfied demanding customer. Michael and Nikos study on the organisation learning curves for customer dissatisfaction across airlines. They plotted estimate U-Shaped learning curve as show in Figure 10 and show evident that complaint rates followed U-shaped function of experience Able to increase fuel efficiency and improve productivity 2.1.3. Simplified distribution system Air Asia design simple user friendly system for customer to book and check- in their ticket. Customers are able to check in using own mobile as shown in Figure 11. This ticketless system is able to reduce waiting time for customer queuing to check- in at the airport counter. 2.1.4. Point to point network (≠¤ 4 hrs) All Air Asia flight is running by point to point network within 4 hours radius or less as its business model. This model only carry passenger from point A to point B without any connecting flight. This in order to keep operation cost simple in order to reduce costs [10]. 2.1.5. Optimum Aircraft Utilization Another way to keep operating cost low and maximizes profit, Air Asia increase productivity by optimise flight utilisation. Air Asia is the fastest in the region by achieving 25 minute turnaround time. Air Asia is able to achieve equal or more than 75% for last 5 years on the load factor. Once, Air Asia achieve close to 100% load factor for Bali Perth route. Load factor is defined by AirAsia as â€Å"numbers of passengers as a percentage of number of seats flown† [10]. On top of that, Air Asia applies â€Å"Tier based† system for ticketing which depend on supply and demand. When demand is low, the price is low. When demand is high the ticket price will also go high. This system is efficient especially during low season allowed Air Asia maintain the reasonable high percent load factor, 2.2. Differentiate Strategies Differentiation strategies offer service or product which unique perceived by customer. Differentiation strategies do not guarantee good payback especially current standard product offered in the industry is more than enough to meet customer expectation. There will a risk on implementing this strategy and need to study carefully on customer requirement before implementing. Product value added, extra servicing, products flexibility and better compatibility are some of the features that can create differentiate in the industry. Cost is not an issue in this strategy; hence company can demand higher price if customer strongly attached to offered differentiation features. Typical move in this strategy is product development. Organisations that apply these strategies include Apple (Lifestyle product), Raul Lauren (Apparel) and Maytag (Home appliance) Apple is applying differentiate strategies compare with other competitors in the industry by selling lifestyle product instead of conventional electronic gadget. In first 6 months of 2011, Apple spends 1.2 billion in research and development. This is about 40% increase compare with 2010 [13]. One of the successful examples when Apple launches iPad during 2010 and Steve Jobs defined iPad as â€Å"entirely new category of mobile devices†. Apple sold more than 15 million units worldwide after launching [14]. 2.2.1. Innovative and creativity product Apple is a â€Å"trend leading† company in the market. The company famous in creating innovative products and able to capture a significant market share after launching new products. Apple spends heavily in research and development because the company believe RD are critical for future growth and are able to create competitive advantages 2.2.2. Wide range of software and applications Apple created another successful platform for customer to download software and application. Traditional, example like phone, other competitor just focus on few simple features which only contains game, photography function, movie and some basic feature. By introducing new approach, Apple created â€Å"The App Store†. Now â€Å"The App Store† has more than 350,000 apps available for iPhone, iPad and iPod touch globally. The apps offered wide range of application from games, entertainment, utilities, social networking, music and others. In Jan 2011, Apple announces that more than 10 billion apps have been downloaded . 2.2.3. Apple store Unlike others competitors store which only focus on products price and feature, Apple differentiate by giving customer different shopping experience in the store. Apple design Apples retail store to give the patrons good impression of stylish, clean, fashion and stream-lined. The product like i Phone, iTunes and etc will placing in a place that customer can try out the features and application. 2.2.4. Provide good service and maintenance Apple provides good service respond compare with others competitors like Samsung and Nokia. In Singapore, Apple provides one to one exchange for i Phone if there is defect and still under warranty. This is different from some of the competitors, depend on the level of repair, some will take about 2 to 3 weeks. This will create some issue for some consumer that only has one hand phone. 2.3. Focus Strategies Focus strategies offers product or service to fulfil the requirement for targeted groups of customer in the industry [9]. Focus strategies can be categorized into 2; Focus cost leadership which focus on low cost solution in narrow market and Focus differentiation provide customised product or service to niche market [16]. Market penetration and market development can be use when applying focus strategies [9]. Focus strategies beneficial when competitors are not able to support on unique requirement of certain group of customer. Organisation which pursuing this strategies include IKEA (Furniture), Ferrari (Automotive) and Federal Express (logistic) 2.3.1. Focus Cost Leadership Strategy IKEA is the Swedish global furniture company that applied focus cost leadership strategy in their business strategy. IKEA offering wide range of home furnish product with low price so that many people can afford to purchase. In order to achieve the strategy, IKEA apply below concept: 2.3.1.1. Design and develop base on price In order to keep competitive price, IKEA design and develop product base on price. The price is â€Å"fix† even before the product is launch. The designer will have to work directly with supplier to ensure meeting low cost by optimised productivity, material efficiency and process improvement [17]. 2.3.1.2. Reduce logistic, handling and operating cost In order to reduce logistic, handling and operating cost, IKEA designer always consider flat-pack transportation and self-assembly during design and development phase. Flat-pack furniture is often delivered in multiple sub assemblies together with simple instruction manual and required customer to perform self assembly. This modular concept is able to save transportation, handling and operating cost. For example, assembled furniture tends to be more bulky and is more expensive to store in warehouse and transportation. Besides, that, IKEA is able to save operating cost by reduce one â€Å"Assembly† process in production . 2.3.1.3. Self-Service in IKEA Store In order t keep the operating cost low and reduce the needs of sales assistance, IKEA design the flow of store layout and display the product effectively by using â€Å"actual room† concept. For example, sofa is placed in â€Å"living room† section and bed is placed in â€Å"Bed Room† section. All the furniture is clearly labelled and useful information like dimension is easily located in the display product [17]. 2.3.2. Focus Differentiate strategy Ferrari is applying focus differentiate strategy by develop high performance car within automotive industry. Ferrari focus on high end consumer compare with other automotive competitors like Honda, Toyota or Ford which target more broad customer. Below is the strategy for Ferrari: 2.3.2.1. New Way of Purchase Car Ferrari compete created innovative approach by introduce new way of purchase car â€Å"Premium Ownership Program† to serve its target customer. This program include insurance, maintenance, warranty , Ferrari tailored made driving course and pit stop service which provide the customer â€Å"mind free† after owning and driving Ferrari car [18]. 2.3.2.2. Innovative Technology Ferrari developed own software to meet customer service expectation such as rapid response times, up to date database and personalise customer service. One of the latest features such as, the customer can view the look of the vehicle and change the preference in â€Å"Service configurator system† even in pre-order stage [19]. 2.3.2.3. Best Dealer Ferrari believes choosing the right strategic partner or dealer is the right way to serve the customer. In order to motivate the dealer, Ferrari created prestigious award Podio Awards for supplier or business partner recognition. 2.4. Stuck in the middle or Hybrid Strategies Porter does not recommend â€Å"Stuck in the middle† or Hybrid strategies if the company want to achieve above average performance in the industry. Company must choose either one of the strategy in the Porters Generic strategy. He claimed that it is difficult for a company to strategies the business to produce low cost product but still remain unique perceived by customer [8]. However, Rodney Goon argues on Porters theory and commented some of the company such as Singapore Airline (SIA) are able to success using â€Å"Hybrid strategy†. Figure 12 shows business strategy applied by SIA which plotted by Rodney [21]. Singapore Airline have been awarded 2nd place in World Top Airline in 2010 by Skytrax in Hamburg [22]. Figure 13 shows main operating cost for SIA. Top 3 costs consist of Fuel, Aircraft and People [23]. In order to achieve competitive advantages, SIA apply below approach: 2.4.1. Become Market Leader Differentiation Strategy SIA founded in 1972 started as small airline company and now evolve become the world trend leading company for Airline industry. SIA become market leader by setting trend started since 1970s when introducing headsets, drink and choice of meals in Economy Class. Figure 14 shows overview on SIA trend setting for more than 39 years in the industry. In 1991, SIA introduce satellite- based telephone to enable passenger to call to ground during flying. In 1998, in order to improve the quality and standard of in-flight meal, SIA formed International Culinary Panel which involves renowned chef from all over the world. By doing this, the passengers are able to enjoy world class cuisine even during travelling. In order to improve customer service satisfaction, SIA introduce in-flight entertainment system named Krisworld which include Audio and Video system. Passenger can watch movie, listen to music and playing game during flying. In 2004, SIA reach another milestone by flying world longest non-stop flight from Singapore to New York (Newark). In 2007, SIA flying new Airbus design A380 which is world largest passenger Aircraft from Singapore to Sydney . 2.4.2. Brand â€Å"Singapore Girl† Differentiation Strategy SIA successfully improve its service compare with others competitors by creating unique iconic image for SIAs air stewardess as â€Å"Singapore Girl† and promote â€Å"Youre a great way to fly† started in 1972. This iconic brand is famous of caring, elegant and good looking girl whom will provide good service for the passenger during on board the plane. â€Å"Singapore Girl† has continuously won many awards in Airline and Travel Industry over the years . 2.4.3. Low Cost -Cost Leadership Strategy â€Å"Everything behind The Scenes Is subject To Rigorous Control† quoted by Rodney . SIA spend heavily on the area that customer can be seen as discussed above in order to remain premium in the industry but cutting cost for area that behind the scene in order to remain cost compatible. Total cost for Singapore airline is about 14.2% is the lowest in the market compare with other competitors like American Airline which labor cost is approximately 31% of total operating expense . Other than that, average price per aircraft purchase is less than other airline provider. This is due to SIA is the market leader in trendsetting and always working with aircraft builder like Airbus when there is new product launching. First purchase in world for A380 allowed SIA command a better purchase price. Q3: What are the major advantages and disadvantages of an integrative strategy? 3. Integrative strategy Organisation is able to gain competitive advantages by using integrative strategy. Integrative strategy can be categorized as vertical, backward, forward and horizontal integration. There are advantages and disadvantages when applying each concept and detail discuss as below: 3.1. Vertical Integration Vertical integration is business strategies which expand its business either through gaining control over company that distribute or selling its product (Forward integration) or taking control over company that provide the raw material for finish goods (Backward Integration). Figure 15 illustrate 4 typical stages for value added chain in PC industry (27). Example for Dell or Hewlett Packard, in order to produce a personal computer, assembly components such as chips, microprocessor and disk drive etc is needed from others manufacturing company (Intel/ Micron). Similarly, component parts manufacturing needs raw material like chemical, metal and ceramic to manufacture the component. Kyocera is one of the suppliers for those materials. Backward integration strategy in this case is trying to taking control over components parts manufacturing and raw material supplier. Whereas for forward integration strategy, PC maker try to gains control over the company that selling or distribute the final product such as OfficeMax and ComUSA [27] This company provide platform to reach end user. 3.2. Forward Integration Forward integration strategy involves increase ownership or control over retailers or distributor and illustrates in Figure 16. One of the effective mean of forward integration is through Franchising [9]. Approximate $2 trillion revenue created annually through franchising business every year globally. This equal to 4th largest Gross National Product in the world [28]. Advantages and disadvantages as discuss below: Advantages: Getting understanding customer better One of the companies using forward integration strategy successfully is Dell. Dell founded in 1984 by Michael Dell with one direction â€Å"selling final products to customer directly† [29]. By doing this, company able to reach end user and getting feedback instantly through companys distributor and retailer without filtering. Low development and training cost By introduce franchising; the company are able to reduce development and training cost. Franchisor will provide training, equipment and product to franchisee. This in order to skip the â€Å"trial error† phase for franchisee and able to help franchisee generate profit with less risk. Example companies like Subway, McDonalds and 7-eleven. Provide better services Company can provide better services through its own controlled network and services. Provide lower cost of sales In order to compete in this competitive world, price of the end product is always one of the critical successful factors for the company. Dell is using this strategy to reduce price bypassing third party involvement such as retailers etc. No mark up from other company in the finished goods Disadvantages: Increase bureaucratic cost Expanding business forward which also means that increase bureaucratic cost for whole value- added chain activities. Due to uncertain demand in current market, it will post some risk to the company Increase Inventory Getting control over distributors or retailer, indirectly manufacturer may have to manage whole product cycle inventory include end products. Company may incurred higher inventory cost if wrongly manage 3.3. Backward Integration Manufacturer need supplier provide raw material in order to produce its end products or service. Backward integration allowed company gain control toward supplier as shown in Figure 16. Advantages and disadvantages as discuss below: Advantages: Getting better quality control Company are able to apply standard quality plan throughout the value chain. This is especially important when dealing with sophisticated components such as crankshaft, piston and turbocharger for engine. By improving the quality of this critical component will increase competitive advantages among the rivals Reduce threat from powerful vendors By increasing control over the vendors, it will reduce threat from powerful vendors. Optimized supply chain â€Å"Keeping track of so many suppliers is onerous† says Mark Shimelonis of Xerox [9]. Nowadays, a number of companies following Japanese firms lead in managing the supply chain to ensure uninterrupted supplies and low prices. Lower structure cost Outsourcing is one of the examples of the backward strategy. Outsourcing strategy will able to reduce cost when company engaging third party specialist that performing charging lower than company own operate value-chain activity. Cummins outsource IT support to India Company and panel design to CMR or Auto Maskin to keep the company structure cost lower. Nike outsourcing its manufacturing plant in China due to lower labor cost [27]. Disadvantages: Technology change Technology change is inevitable in current competitive market. But backward vertical integration may lock a company â€Å"way of doing business† and prevent organisation changes due to technology change. One of the examples is when radio manufacturer acquired a manufacturer of vacuum tube in 1950s to reduce production cost. When, transistors replace vacuum tube in 1960s, the competitor rapidly change to latest technology. However for this radio manufacturer company, the management refuse to change and as the result, lost in the competitive advantages and cause business failure. Thus, backward integration can cause serious disadvantages when trying to match rapid technology change [27] Risk of information loss Increase control over the supplier which mean also potentially important information flow to the supplier. For example, Cummins need to provide important parameter and interfacing information in the engine control module to backward supplier like CMR and Auto Maskin in order to joints develop the engine protection panel. Technical drawing will be shared among backward supplier and manufacturer. Potential high cost Less supplier competition will lead to less efficiencies when produce a product. The backward support company will work in the â€Å"comfort zone† and less initiative. The manufacturer is â€Å"forced† to get the input from â€Å"internal supplier† even there will be some others external supplier can produce lower cost .As the result will cause potentially higher production cost . 3.4. Horizontal Integration Horizontal integration refers to company that use â€Å"single industry strategy† and seeking control over competitor in same market. A number of the company apply this concept as growth strategy. Merger and acquisition allowed the company to expand its core business and technical capabi