Modern Indian Religions Research Paper Example | Topics and Well Written Essays - 750 words

Modern Indian Religions - Research Paper Example Ambedkar, emphasizes the role of God in religion and its influence in bringing social changes and hence laying the foundation for an egalitarian society. B.R. Ambedkar, pioneered and demanded for a revolutionary change in the caste system by fighting for equal rights for India's lower classes - known as the untouchables. Post independence he drafted the Indian Constitution and defended the ethnic and religious minorities by advocating their rights and reserving a secure place for them in the society through quotas, ensuring them government jobs and thus laying a foundation of social equality. He inspired the Dalit Buddhism movement in India with a view to eradicate the biased treatment meted out to the social outcasts on the basis of their religion. It led to mass conversions among the lower classes who converted to Buddhism. He spearheaded the first Dalit movement in the Indian state of Maharashtra and launched efforts and programs to eradicate illiteracy among the Dalits, by settin g up newspapers and establishing political parties to support the cause. He also contributed in campaigning for acquiring religious rights for the Dalits and played a key role in lifting the ban which prohibited the Dalits from entering Hindu places of worship. This paper on modern Indian religions discusses the impact and influence of Dalit Buddhism in bridging the gap between the higher castes and the lower castes / the untouchables i.e. the Dalits.... Although Dalit Buddhism was a new religion introduced by Ambedkar the fundamental principles were borrowed and based on Buddha's preaching. According to Ambedkar the Dalits were not Hindus, and hence he embraced Buddhism which is silent on the existence of god. Dalit Buddhism is based on this lack of denial or acknowledgement of the concept of god, since it is perceived as an attempt to rationalize the concept of god. Thus, Buddhism is often described as a theist religion rather than an atheist one. The Tibetans view the Dalai Lama as a reincarnation of Buddha - the god, and in the same vein, the Dalits in India view Ambedkar - their savior as reincarnation of god (Karunyakara, 2002). Dalit Buddhism was founded as a means of liberating the oppressed and socially outcast people in India from the clutches of Hinduism. Buddhism as a religion offers the freedom to the modern Indian society to embrace equality and respond to the challenges posed by a highly hegemonic Hindu - Brahmin socie ty. In a society where casteism is rampant and there is an apparent bias / prejudice against the Dalits, Buddhism offers an opportunity to the Dalits to reconstruct their own cultural world, which reinstates the values, beliefs, and ideals relevant to the Dalits in a Hindu dominated society (Ambedkar, 1980). Impact of religion in building an egalitarian society: Religion plays a key role in social and political aspects in India. Hindu Brahmins assume positions of greater significance in the socio-cultural spheres of life while teh Dalits are treated as outcasts and suffer great injustice across various sectors in the society. Dr. Ambedkar, through the introduction of Dalit Buddhism

Corporate governance Essay Example for Free

Corporate governance Essay Corporate governance is concerned with the structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organization. It has become an increasingly important issue for organizations for three main reasons. The separation of ownership and management control of organizations (which is now the norm except with very small businesses) means that most organizations operate within a hierarchy, or chain, of governance. This chain represents those groups that influence an organization through their involvement in either ownership or management of an organization. Increased accountability to wider stakeholder interests has also come to be increasingly advocated; in particular the argument that corporations need to be more visibly accountable and/or responsive, not only to ‘owners’ and ‘managers’ in the governance chain but to wider social interest Corporate scandals since the late 1990s have increased public debate about how different parties in the governance chain should interact and influence each other. Most notable here is the relationship between shareholders and the boards of businesses, but an equivalent issue in the public sector is the relationship between government or public funding bodies and public sector organizations. As the key purpose of Corporate governance drive the benefit of shareholder of the company all members of corporate governance model responsible and accountable for driving this primary objective. 1.1 Five Golden Rules of Corporate Governance And best corporate governance practice is not simply about a battle between distant, disloyal institutional shareholders and greedy directors but about the ethos of the organization and fulfilling its clearly agreed goals. 5 golden rules of Corporate Governance of successful organization are: 1. Ethics: a clearly ethical basis to the business 2. Align Business Goals: appropriate goals, arrived at through the creation of a suitable stakeholder decision making model 3. Strategic management: an effective strategy process which incorporates stakeholder value 4. Organization: an organization suitably structured to effect good corporate governance 5. Reporting: reporting systems structured to provide transparency and accountability 2 Objectives of study Objective of this case study is to understand and critically examine flaws, failure of Corporate Governance on Satyam Computer’s strategic decisions. Also analyze what are the areas those can be influenced by proper Corporate Governance. This case also helps understanding Governments roles to tackle firms or intervene in firm’s functionality in the interest of internal and external stakeholders. Not only were there failures at the regulatory level, but also at the executive level. With no express code for corporate governance in India, the company failed to follow the industry standard best practices and as a result, collapsed. This study would be useful in identifying the different kind of failures in a family owned business like Satyam and to policy makers in designing and implementing corporate governance frameworks for professionally managed as well as family managed businesses like Satyam. This case also reveals how wrong decisions can damage entire organization and dent the image of company. This case also focuses certain legal issues related to roles and responsibilities of Chairman and other top management including critical role of independent directors of organization. This Case Study focuses laws and gaps in the Indian context. 3 Historical Evolution of the company Satyam was incorporated on June 24, 1987 as a private limited company providing software development and consulting services based out of Hyderabad, Andhra Pradesh. Ramalinga Raju and his brother Rama Raju were the promoters of the company. Before starting Satyam these duo were involved in other businesses like construction and textiles. This company was started with 20 employees 1991, this company went in for IPO where it was oversubscribed by 17 times. Same year it could bag clients like John Deere co which is fortune 500 company. This is the first time it adopted offshoring model. 1993, Satyam formed joint ventures with clients like D B and also with GE. In 1996 Satyam started its on shore offices in US and Japan. And its first development center in New Jersey, 1998. By 1999 it had operations in 30 countries and was assessed SEI CMM Level 5, one of the very few companies to get this accreditation by then. In 2000, Satyam grew by 10000 employees and got listed in NASDAQ ( National Association of Securities Dealers Automated Quotations) in 2001. 2004 Satyam was providing services in 45 countries with employee base of 15000. At that time Company was operating in various verticals with 18 development centers. Company crossed 1Billion revenues by 2006. Satyam’s revenues grew to 2 billion by 2008 with a net income of 417mn. Gained 186 of fortune 500 customers. Sailing in the industry with 46000 employees by March 2008 with operations across 66 countries. By September 2008 it recorded revenue of 28.19Bn. 3.1 Corporate Governance Practice at Satyam To explain the level of commitment and ethics to society it was mentioned by both inside and outside members of Satyam that on the day of Ramalinga Raju father’s cremation he attended shareholders meeting. Company’s ethics and level commitment were stressed in many annual reports. Corporate Governance was driven by its core values Associate Delight Investor Delight Customer Delight Pursuit of Excellence Company stated that† it believes that corporate governance practices provide an important framework to help the board of directors to fulfill its responsibilities† Main duties of the board were to set strategic direction to the company and leading the organization in the right direction there by ensuring long term interest of investor and other stakeholders of the company. Source: Satyam Computer Services, Report on Corporate Governance 2006-07 For independent functioning, the board comprised of both executive and non-executive members. Board also comprised several committees like Investor Grievances committee Compensation Committee Audit Committee The board was governed by code of conduct, which specified that all employees, directors needed to carry out their duties legally, honestly and ethically. It also specified all clauses that avoid any code of conflict etc.., Company’s Whistle Blower policy was also in place. According to experts though sound policies were in place none of the directors were objecting Raju’ s decisions even though they are against the interest of investor. It continued till the time when Raju was planning to acquire Maytas where the biz of Target Company was not aligning to Satyam and also those companies are promoted by Ramalinga Raju’s family members. 3.2 Role and Powers of Independent Directors (clause 49 of SEBI) SEBI had constituted a Committee on Corporate Governance under the chairmanship of N R Narayana Murthy to improve standards of corporate governance in India. SEBI introduced some major amendments based on the report on this committee on 26th August, 2003, in clause 49 of its listing agreement. Applicability of Clause 49 All companies which were required to comply with the requirement of the erstwhile clause 49 i.e. all listed entities having a paid up share capital of Rs 3 crores and above or net worth of Rs 25 crores or more at any time in the history of the entity, are required to comply with the requirement of this clause. This clause does not apply to other listed entities, which are not companies, but body corporates, incorporated under other statutes. Clause 49 will apply to these institutions as long as it does not violate their respective statutes, guidelines or directives. Clause 49 of the SEBI’s listing agreement relates to Independent Directors. Clause 49 Corporate Governance The company agrees to comply with the following provisions: I. Board of Directors (A) Composition of Board (i) The Board of directors of the company shall have an optimum combination of executive22 and non-executive23 directors with not less than fifty percent of the board of directors comprising of non-execu tive directors. (ii) Where the Chairman of the Board is a non-executive director, at least one-third of the Board should comprise of independent directors and in case he is an executive director, at least half of the Board should comprise of independent directors. (iii) For the purpose of the sub-clause (ii), the expression ‘independent director’ shall mean a non-executive director of the company who: a. Apart from receiving director‘s remuneration, does not have any material pecuniary relationships or transactions with the company, its promoters, its directors, its senior management or its holding company, its subsidiaries and associates which may affect independence of the director; b. Is not related to promoters or persons occupying management positions at the board level or at one level below the boardx` c. Has not been an executive of the company in the immediately preceding three financial years; d. Is not a partner or an executive or was not partner or an executive during the preceding three years, of any of the following: 1. The statutory audit firm or the internal audit firm that is associated with the company, and 2. The legal firm(s) and consulting firm(s) that have a material association with the company. e. Is not a material supplier, service provider or customer or a lessor or lessee of the company, which may affect independence of the director; and f. Is not a substantial shareholder of the company i.e. owning two percent or more of the block of voting shares. OTHER DEFINITIONS The Department of Company Affairs (DCA) had appointed a Committee headed by Mr. Naresh Chandra along with the distinct professionals from various fields. Apart from this, the Kumaramangalam Report also has suggestions about Independent Directors. Some definitions on Independent Directors. THE CADBURY REPORT (1992) Apart from their directors‘ fees and shareholdings, they should be independent of management and free from any business or other relationship which could materially interfere with the exercise of their independent judgmentâ€â€". THE KUMARAMANGALAM REPORT (1998) ―Independent directors are those directors who apart from receiving director‘s remuneration do not have any other material pecuniary relationship or transactions with the company, its promoters, its management or its subsidiaries, which in the judgment of the board may affect their independence of judgment THE NARESH CHANDRA REPORT (2003) Apart from receiving director‘s remuneration, does not have any other material pecuniary relationships or transactions with the company, its promoters and senior management.â€â€" It is significant to mention hear that the Naresh Chandra Committee report has opined that the recommendations made by the Kumaramangalam Committee in relation to independent directors are not precise and cannot fulfill the requirement of the independency as compared to the International best-in-class definitions and other pragmatic factors.25 An independent director is characterized by the following principle features: COMPANIES ACT, 1956 INDEPENDENT DIRECTORS Under the Companies Act,1956 the powers and duties of directors has evolved under interpretation of various Sections such as 291, 297, 299, 397, 398, 408, 629A, to name a few which have recognised and upheld directors‘ fiduciary duties to shareholders, to act with due care, skill and good faith. Sections 297 and 299, for example, are intended to eliminate possibility of conflict of interest. Unfortunately, the Act does not envisage a proper remedial regime, providing for rescission of underlying transactions, compensation for corporate and stakeholder losses, disgorgement of ill-gotten gains etc. Theoretically, some of these reliefs can be agitated for before the Company Law Board – but courts are hesitant to pass such drastic orders, in cases of such large, reputed companies ROLE OF INDEPENDENT DIRECTOR TOWARDS SHAREHOLDERS Corporate Governance principles all over and listing requirements assign tasks that have a potential for conflict of interest to independent directors, examples of these are integrity of financial and non-financial reporting, review of related party transactions, nomination of board members and key executives remuneration. The shareholders, especially the minority shareholders, look to independent directors providing transparency in respect of the disclosures in the working of the company as well as providing balance towards resolving conflict areas. In evaluating the board‘s or management decisions in respect of employees, creditors and other suppliers of major service providers, independent directors have a significant role in protecting the stakeholders interests. One of the mandatory requirements of audit committee is to look into the reasons for default in payments to deposit holders, debentures, non-payment of declared dividend and creditors. Further they are required to review the functioning of the ―Whistle Blower mechanismâ€â€" and related party transactions. These, essentially, safeguard the interests of the stakeholders 4 Major strategic decisions and its consequence December 16th 2008, Chairman Ramalinga Raju in a surprise move announced intent to acquire Maytas Properties and Maytas construction companies for a whopping 1.6Bn. While it is evident that these two companies are promoted by Ramalinga Raju’ s family in the industry circles it was not clear why should a IT services company focus on infra and property business. As the decisions was opposed by investors and clear indication of market fluctuation made Ramalinga Raju to revert his decision in 12 hours. Share prices plunges by 55% on concerns about Satyam’s corporate governance. In a surprise move, the World Bank announced on December 23, 2008 that Satyam has been barred from business with World Bank for eight years for providing Bank staff with â€Å"improper benefits† and charged with data theft and bribing the staff. Share prices fell another 14% to the lowest in over 4 years. The lone independent director since 1991, US academician Mangalam Srinivasan, announced resignation followed by the resignation of three more independent directors on December 28 i.e. Vinod K Dham (famously known as father of the Pentium and an ex Intel employee), M Rammohan Rao (Dean of the renowned Indian School of Business) and Krishna Palepu (professor at Harvard Business School)6. At last, on January 7, 2009, B. Ramalinga Raju announced confession of over Rs. 7800 crore financial fraud and he resigned as chairman of Satyam. A week after Satyam founder B Ramalinga Raju’ s scandalous confession, Satyam’s auditors Price Waterhouse finally admitted that its audit report was wrong as it was based on wrong financial statements provided by the Satyam’s management’s On January 22, 2009, Satyam’s CFO Srinivas Vadlamani confessed to having inflated the number of employees by 10,000 Satyam share price have seen sharp decline within hours of the outburst of the incident and further deteriorated after Ramalinga Raju’s confession Source: http://akpinsight-ijcbs.webs.com 5 Implementation of strategic decision On 30th Sep 2008, Satyam reported that it had cash reserves of 1.2Bn and on December 16th company expressed intent of acquiring Maytas Properties and Maytas Constructions for 1.6Bn. While Maytas infra a public listed company operating for two decades Maytas properties s only 6 months old which declared a revenue of 7.37Bn and net profit of 370 mn. On December 16th 2008 Satyam board approved acquisition of Maytas. The cash reserve to be used by Satyam to buy 51% of equity stake in Maytas infra for 1.3Bn USD and for Maytas properties 300 mn USD. Satyam planning to acquire 31% of the holding of the Raju family in Maytas Infra and another 20% through open offer to shareholders. The promoters held 36.64% equity stake in Maytas infra . Satyam planning to pay 475 Rs per Share which was 1.25% less than closing value December 16th and open offer made at 525 rs from the existing Maytas infra shareholders. After approval from board Ramalinga Raju announced this as a strategic move to de-risk core business by bootstrapping a new business vertical. He also called out that this would de-risk the recessional impacts on the current vertical of core business. Announcement however trigger negative reaction from industry, investors and stock markets. Satyam’s stock got severe beating on December 16;.The ADR fell from 12.55 to 5.70 after this announcement . On Bombay Stock Exchange the stock fell from 226 to 158 rs. It went down further to 134 on December 24th 2008. The decision attracted lot of criticism that promoters who has only 8.74% equity stake in the company were being allowed by the board to transfer a considerable amount of money from Satyam to Maytas where Ramalinga Raju’ s family own more stake. Analysts called that this is act of siphon to move cash from Satyam into a place where Raju’ s family has more stake. Experts also called that if board is convinced with the deal then it is their responsibility to inform major investment institutions which is a good sign of proper corporate governance. Valuation of Maytas was not transparent and this was not even informed to investors in advance. Investors called this process as act of misuse of Satyam funds and it’s a nepotism. Registrar of Companies asked Satyam to submit minutes of board meeting for validity and review held on December 16th 2008. However Satyam could not provide minutes of meeting in the said deadline given by RoC. These reactions compelled Satyam to roll back the decision within 12 hours .These accusations lead to few international issues where the long battle between British Virgin Island Based Upaid system and Raju and Satyam CFO. There are three cases breach of contract, forgery filed by filed by UPaid and one disparagement filed by Satyam. On December 23 2008 World Bank announced that it will bar Satyam to take any of its contracts for next 8 years due to improper invoice and benefit to employees. It was reported that Satyam sold its preferential shares to World Bank CIO. Before Maytas controversy got over DSP-Merlynch announced that it is terminating its advisory agreement with Satyam. In its communication it said considering various strategic options it had terminated its advisory agreement also quoted that it was to their understanding that there are accounting irregularities which prompted them above decision. Analysts said that this move compelled Raju to confess as SEBI asked DSP-Merlynch asking why it had to withdraw the agreement. 6 Merits/Flaws of implementation Following are the Governance Flaws noticed in the case of Satyam computer Services Limited 6.1 Unethical Conduct It is evident that founder of the company wanted to make money any which way by avoiding taxes, cooking books , creating false payrolls and pay offs. Shareholders, employees and clients realized steady diet of (A)Satyam. He was not following the spirit behind its name. Along with his brother Rama Raju who is his also managing director of the company disguised all this from company’s board , senior managers and auditors for several years. Confession revealed the fraudulent and unethical behavior of the duo who bagged many awards and rewards for his best corporate governance including prestigious Golden Peacock award. Both CEO and CFO charged for putting self-interests ahead of company’s interests. 6.2 A case of insider trading Both central and state investigation agencies and also audit firms revealed and established that promoters indulged in the nastiest kind of insider trading of company’s shares to raise money for building large land banks. It was established that money raised by Ramalinga Raju and Rama Raju along with his relatives used to buy lands in 330 binami companies. 6.3 Case of False Books and Bogus Accounts The Serious Fraud Investigation Office (SFIO), 23 a multi-disciplinary investigating arm of the Ministry of Corporate Affairs, set up in 2003 with officials from various law enforcement agencies, was asked to investigate the fudging of accounts as admitted by B. Ramalinga Raju. the consent of the board was unanimously accorded after which Raju proposed the merger of MIL and MPL to the shareholders, which came in for stiff resistant, and issue of corporate governance was raised.† A couple of weeks later, Ramalinga Raju dropped a bombshell by sending a letter of admission to SEBI and the board of directors that he had fudged the accounts of Satyam and that the balance sheet as on September 30, 2008 carried an inflated (non-existent) cash and bank balances of Rs 5040 crore, non-existent interest of Rs 376 crore and understated liability of Rs 1230 crore Source: http://www.applied-corporate-governance.com/best-corporate-governance-practice.html 6.4 Lax Board The Satyam Board was composed of ‘chairman-friendly’ directors who failed to question managements strategy and use of leverage in recasting the company; they were also extremely slow to act when it was already clear that the company was in financial distress. The glue that held the board members together was Ramalinga Raju. Each of the board members were there on his personal invitation and (that) made them ineffective. The Board ignored, or failed to act on, critical information related to financial wrongdoings before the company ultimately collapsed. It was only when Ramalinga Raju in the December, 2008 announced a $1.6 billion bid for two Maytas companies i.e. Maytas Infra and Maytas Properties, and while the share market reacted very strongly against the bid and prices plunged by 55 % on concerns about Satyam’s corporate governance, that some of the independent directors came into action by announcing their withdrawal from the Board 6.5 Unconvinced Role of Independent Directors The Satyam episode has brought out the failure of the present corporate governance structure that hinges on the independent directors, who are supposed to bring objectivity to the oversight function of the board and improve its effectiveness. They serve as watchdogs over management, which involves keeping their eyes and ears open at Board deliberations with critical eye raising queries when decisions scent wrong. Stakeholders place high expectations on them but the Satyam’s case reveals such expectations are misplaced. Six of the nine directors on Satyam’s Board were independent directors including US academician Mangalam Srinivasan (the independent director since 1991), Vinod K. Dham (famously known as father of the Pentium and an ex Intel employee), M Rammohan Rao (Dean of Indian School of Business), US Raju (former director of IIT Delhi), T.R. Prasad (former Cabinet Secretary) and Krishna Palepu (professor at Harvard Business School). They were men of standing reputation. To avoid any controversy, the two founder directors did not participate in the decision making process for the reason that the provisions of the Companies Act and SEBI regulations mandate presence of only disinterested directors in board meeting where the agenda of such a nature is discussed. This naturally causes suspicion on the role performed by the independent directors present in that meeting. What concerns everyone is that those independent directors allowed themselves to be party to the mysterious designs of the promoter directors. It is hard to believe that such eminent and experienced personalities could not discover the well-planned massive fraud and manipulations. 6.6 Questionable Role of Audit Firm/Committee The true role of audit committee in prà ©cis is to ensure transparency in the company, that financial disclosures and financial statements provide a correct, sufficient and creditable picture and that, cases of frauds, irregularities, failure of internal control system within the organization, were minimized, which the committee failed to carry out. The timely action on the information supplied by 18 a whistleblower to the chairman and members of the audit committee (an e-mail dated December 18, 2008 by Jose Abraham), could serve as an SOS to the company, but, they chose to keep silent and did not report the matter to the shareholders or the regulatory authorities. The Board members on audit committee who failed to perform their duties alertly be therefore tried out under the provisions of the Securities Contracts (Regulation) Act, 1956 (an unimaginable fine extendable to rupees 25 crore by also including imprisonment for a term, which may extent to 10 years). 6.7 Suspicious Role of Rating Agencies Credit rating agencies have been consistently accused of their lax attitude in assessing issuers and giving misleading ratings without thorough analysis, as has been the case of Enron and now in Satyam, they failed to warn market participants about the deteriorating condition of company. On December 2, 2001, Enron Corporation, the USA’s 7th largest corporation declared bankruptcy when it was rated investment grade by all the credit rating agencies even four days before its bankruptcy. None of the watchdogs barked, including the credit rating agencies, which had greater access to Enron’s books. In the case of Satyam, credit rating agencies have been heavily criticized as regards their role and for the accuracy of their ratings. The rating agencies were allowed to look into company’s books for making assessments but they never investigated the financial condition of Satyam. The rating agencies displayed lack of due diligence in their coverage and assessment of Satyam. They based their analysis on fraudulently prepared and audited financial statements and thereby failed to warn investors about Satyam’s deteriorating condition. 6.8 Questionable Role of Banks The ICAI Probe Panel has hit out at banks for not doing due diligence on Satyam Software Services Ltd before giving it loans. While sanctioning short term loans why not the banks posed any question as to why the company which was supposedly cash rich as per the financial statements was taking loans from them. The Panel wondered why the government put Deepak Parikh on its Board despite his HDFC group being a major creditor to the company. The banks that gave loans to Satyam during 2000-08 despite the company claiming huge surpluses were HDFC Bank (Rs 530 Crore, Citibank (223.87 Crore), Citicorp Finance (Rs222.28 Crore), ICICI Bank (Rs 40 Crore), and BNP Paribas (Rs 20 Crore) totaling Rs 122.161 Crore. 6.9 Fake Audit PricewaterhouseCoopers (PwC)’s audit firm, Price Waterhouse, was in the auditor for Satyam and have been auditing their accounts since 2000-01. The fraudulent role played by the PricewaterhouseCoopers (PwC) in the failure of Satyam matches the role played by Arthur Anderson in the collapse of Enron. S Goplakrishnan and S Talluri, partners of PwC according to the SFIO findings, had admitted they did not come across any case or instance of fraud by the company. However, Ramalinga Raju admission of having fudged the accounts for several years put the role of these statutory auditors on the dock. The SFIO report stated that the statutory auditors instead of using an independent testing mechanism used Satyam’s investigative tools and thereby compromised on reporting standards.

Personal Success Essay -- American Dream Essays Papers

Success   Ã‚  Ã‚  Ã‚  Ã‚  Everyone’s vision of success differs. Wealth, happiness, and fame are all the stereotypical aspirations of the common person’s so-called â€Å"American Dream.† My American dream encompasses more of the first two aspects than anything else. Happiness is the most important; without happiness, wealth and fame are useless. Without happiness, success cannot exist; it is your own personal gauge of accomplishment. If you cannot look at yourself in the mirror and evaluate your own life a success, then why should anyone else consider you successful? Wealth can attribute to happiness. No matter what anyone says, having more material goods makes your standard of living better, which normally is a direct correlate of happiness. It helps you experience the luxurious joys in life that, otherwise, you couldn’t carry out. Fame, to me, isn’t needed but rather acquired through the life of the successful person. A legacy is more honorable than a na tional fame, because after death fame is a more humble characteristic. Changing others lives, after they examined your life in retrospect, makes fame an irreplaceable cog in the machine of success.   Ã‚  Ã‚  Ã‚  Ã‚  Admiration and aspirations of a person can help determine how successful they will be. Role models help blaze a path of success in the minds of their protà ©gà ©. If someone looks up to a person who themselves are successful, they have better odds of being successful themselves. On the other hand, looking up to a failure of a human being, t...

Boeing Internal Analysis

Boeing Internal Analysis Purpose This report discussed the components of internal analysis, competitive advantage, and strategic competitiveness of Boeing Company. This is done by analyzing the tangible & intangible resources, capabilities, and core competencies in order to clarify Boeing’s strengths and weaknesses. Resources Exhibit 1 Tangible| Intangible| Manufacturing plants| Boeing’s digital design software| Composite and metal materials| Dynamic assembly line| Headquarters building| â€Å"Moonshine teams† strategy|Machinery used for lean production| Boeing’s brand name| Financing/ Launch aid from NASA | | Boeing’s newest jet, the 787, is made out of composite plastics and carbon fiber in order to be more efficient and comfortable. The new materials allow the plane to be pressurized at a lower elevation, which results in less jet lag. Also, the cabin humidity can be raised to around 20% because these materials do not corrode like metals. Through the use of lean productions, Boeing significantly reduced the cost of machinery used for manufacturing, along with inventory costs.For financial resources, Boeing received $12 billion from NASA to develop technology. They also received $1 billion in loans from Mitsubishi, Kawasaki, and Fuji for the development of the 787. Furthermore, Boeing had received launch aid from U. S. Government subsidies. Boeing has a reputation as one of the best manufacturers of commercial and military jets. Its strong brand and name represents the position in the aerospace industry. Boeing has encountered some scandals in upper management, however they are trying to restructure its reputation and make a comeback.Capabilities Exhibit 2 Capability| Valuable| Rare| Costly to imitate| Non-substitutable| Dynamic Assembly| Yes| Yes| Yes| Yes| Lean Production| Yes| Yes| Yes| Yes| Composite Materials| Yes| Yes| Yes| Yes| Lean production at Boeing was a very important and effective decision. They were able to de sign equipment that cost amazingly less and was much more efficient than the machines they were using at the time. A router was built for 0. 2% cost of their larger one and a drill machine was built for 5% cost of the previous model.They used a hay loader to put the seats into the planes, rather than using a crane, which reduced production time from twelve hours down to only two hours. Production of landing gear components took 32 moves over 10 months, but with the lean production strategy it only took 3 moves and the time span was reduced to 25 days. Dynamic assembly was an important change at Boeing as well. Before, planes had to be jacked into position at one station, worked on, down-jacked from the station, and moved with a power cart to the next station.This process could take up to two, ten hour shifts. By using a sled that drags the plane two inches per minute, Boeing reduced production time in half. Core Competencies One of Boeing’s core competencies would be utilizin g composite plastics in the manufacturing of their jets. This is valuable because it allows them to build a jet that can travel faster, farther, and with more comfort than on previous jets. It can be considered costly to imitate because when Airbus built a model to compete, the A350, its performance was unable to compare to that of Boeing’s 787.The composite materials are non-substitutable because it is currently the highest grade technology jet manufacturing industry. It is rare because only Boeing and Airbus are in the commercial jet industry, and Airbus’s model cannot compare. Another core competency would be Boeing’s ability to use lean production. This is valuable because it allowed Boeing to free up 1. 3 million square feet of space and sell seven buildings by switching to a â€Å"just-in-time† inventory. Also, they were able to reduce costs of equipment and speed up the manufacturing process drastically.It is socially complex because it uses numero us different strategies to create one finished product. There are no substitutes that compare to lean production as far as time and money savings, and it is rare because Airbus and Boeing are the commercial jet companies to use it. The third core competency is Boeing’s dynamic assembly line. This was a valuable change to Boeing because it reduced assembly time by 50%, or from 22 days down to 11 days. The planes move 80 feet every shift and lights determine the status of the assembly line.Dynamic assembly lines are costly to imitate and rare due to the size of the plant and the components used in order to pull such a large craft throughout the building. The only substitute of a dynamic assembly line is a static assembly line, and the dynamic one performs much more efficiently. Weaknesses * Ineffective top management Boeing was recently faced with the scandals which hurt the reputation of Boeing. The top management recognized the problem and tried to figure it out by effective management strategies. * Outsourcing In 1997, Boeing lost $1. billion against their earnings due to problems with the supply of critical components. They had to halt the production of the 737 and the 747. In 2006, suppliers for Boeing’s 787 fell behind schedule which resulted in a delay of production. Value Chain Analysis The industry value chain is the process from the suppliers of the raw material to the end customers who demand the service of transportation. Boeing found itself in the crucial situation of having lost market share to Airbus. Boeing had to act in response by enhancing customer benefits to recapture an advantage over its competitors.The fundamental idea was an innovative renovation in the supply chain process, which would redefine Boeing’s role as a coordinator and integrator rather than simply the manufacturer. At the heart of the supply chain transformation process was the strategy to outsource more than 70% of the 787’s production. Boeing int roduced new project management techniques by sharing risk with partners. The companies sharing risk transformed the entire 787 program. The risk shared by partners in investing their own capital in the 787 program cut approximately 55% of Boeing’s development cost required for the program, which was $6 billion.Boeing’s outsourcing process has dramatically reduced the manufacturing time from roughly two weeks to as little as three days. Saving such significant time greatly decreases labor and inventory costs for the company as outsourced components reach the assembly site with pre-fitted sub-systems. This approach streamlines and adds efficiencies to the assembly process. (Boeing value chain report, 2010) Competitive Advantage * Works more with both its customers and suppliers to design and build the best aircrafts on the market. R&D departments which are able to design and implement better aircrafts which reduce the costs and make more efficiency. * Flexible work sched ules for the employees. * Boeing’s name and brand bring a strong competitive advantage between Boeing and Airbus. Exhibit 3 Profitability ratios| Boeing| Airbus| Net profit margin| 3. 6%| 0. 3%| Gross profit margin| 18. 02%| 11. 95%| Asset turnover| 1. 1| 0. 55| Return on assets| 6. 16%| 1. 07%| The profitability ratios show that Boeing had a moderate and good profitability compare with other company (such as Airbus).The return of assets of over 6 % shows an overall strong earning power of Boeing’s total assets. Strategic Competitiveness Boeing has implemented outsourcing to build better and more efficient airplanes by using portions of other companies’ knowledge and research with their own. This has helped them produce airplanes at a much lower cost. Boeing's strategy was to develop the 787 at a very low cost. By doing this, Boeing believes it can compete with Airbus' new Super Jumbo project. Boeing focused on medium capacity aircraft which can hold 250 people, whereas Airbus focused on super jumbo jets, which contain 550 people.Overall Boeing has achieved higher quality and efficiency. Boeing pins its hope on a different strategy and does not take the hub-and-spoke concept as a given. The Boeing 787 is the solution for non-stop, point-to-point flights between secondary cities. Conclusion Boeing’s ability to develop lean production, use of composite materials, and dynamic assembly methods are their strengths. Their weaknesses include poor upper management and unreliable outsourcing. In the future, Boeing needs to find higher quality upper management and more reliable suppliers.

Internet Exercises Appendix Chapter 1

INTERNET EXERCISES APPENDIX Chapter 1: Marketing's Role in the Global Economy Internet Exercise: Wal-Mart You can check out the on-line shopping experience of Wal-Mart on the Web by going to www. wal-mart. com and clicking on â€Å"Go Shopping. † For related discussion in the Basic Marketing text, see page 8. Internet Exercise: ONSALE Auction Supersite The ONSALE Auction Supersite features a number of on-line auctions in which different sellers auction off computer, consumer electronics, and other products to buyers. Visit the web site at www. onsale. com and review an open auction for a consumer electronics product.What are the advantages and disadvantages of this market for sellers? For buyers? For related discussion in the Basic Marketing text, see page 17. Internet Exercise: World Trade Organization The World Trade Organization is a very important force behind the global move toward free trade, but sometimes there are still disputes. Go to the WTO web site at www. wto. org and find out how the WTO settles disputes. Do you think that this procedure favors the developed nations, the less-developed nations, or neither? Give your thinking. For related discussion in the Basic Marketing text, see page 22.Chapter 2: Marketing's Role within the Firm or Nonprofit Organization Internet Exercise: L. L. Bean The L. L. Bean web site (www. llbean. com) offers consumers a lot of information, including information about national parks. Do you think that this helps Bean to build relationships with its target customers? For related discussion in the Basic Marketing text, see page 40. Internet Exercise: Lilly Lilly, the pharmaceutical company, makes the effort to be socially responsible. To find out more about Lilly’s corporate citizenship, go to the Lilly home page (www. lilly. om) and click on company information and then click on corporate citizenship. For related discussion in the Basic Marketing text, see page 42. Chapter 3: Focusing Marketing Strategy with Segmentation and Positioning Internet Exercise: McDonald’s McDonald’s has about 22,000 restaurants in 109 countries. Go to its web site, www. mcdonalds. com, and determine what country is its largest market outside the U. S. Do you think it offers more or less opportunity for future growth than the U. S.? For related discussion in the Basic Marketing text, see page 67. Internet Exercise: MarriottCourtyard by Marriott targets business travelers. Visit the Marriott web site, www. marriott. com, and write down what you think are the qualifying and determining dimensions for a businessperson choosing Courtyard over Marriott’s other hotel options. For related discussion in the Basic Marketing text, see page 81. Chapter 4: Evaluating Opportunities in the Changing Marketing Environment Internet Exercise: Tupperware If you were a new marketing manager at Rubbermaid, you might be interested in finding out more about Tupperware, an important competitor in some markets.Wh at type of relevant information could you get by going to the Tupperware web site, (www. tupperware. com)? For related discussion in the Basic Marketing text, see page 101. Internet Exercise: Consumer Reports The Consumer Product Safety Commission sometimes requires auto makers to issue recalls. However, not all consumers learn about the recalls. Go to the Consumer Reports web site (www. consumerreports. com/recalls) and check to see if there has been a recall on a year and model of car or truck that is of interest to you (say, one owned by your family). For related discussion in the Basic Marketing text, see page 110.Chapter 5: Demographic Dimensions of Global Consumer Markets Internet Exercise: CIA’s World Factbook Visit the web site for the CIA’s World Factbook (www. odci. gov/cia/publications/factbook) and compare the profile data for Canada and Australia. How are they similar and how are they different? For related discussion in the Basic Marketing text, see page 133. Internet Exercise: JNCO Revatex grew rapidly when its wide-leg JNCO brand jeans became a hit with teens. Do you think that its web site (www. jnco. com) does a good job appealing to teens? Why? For related discussion in the Basic Marketing text, see page 138.Chapter 6: Behavioral Dimensions of the Consumer Market Internet Exercise: SRI’s VALS Go to the SRI Internet site (http://future. sri. com), click on VALS, and then click on â€Å"direct to the survey† to review the VALS questionnaire. If you wish, complete the short questionnaire on-line. SRI will provide you with your VALS profile. For related discussion in the Basic Marketing text, see page 164. Internet Exercise: GAP To make it easier for consumers to visualize how certain fashions will look together, the GAP’s web site (www. gap. com) has a â€Å"get dressed interactive† feature.Go the GAP web site and check out this feature. Do you think that it makes it easier to evaluate a potential purch ase? For related discussion in the Basic Marketing text, see page 173. Chapter 7: Business and Organizational Customers and Their Buying Behavior Internet Exercise: Computer Discount Warehouse At the Computer Discount Warehouse web site (www. cdw. com) a buyer can easily compare the features and prices of competing products. Click on desktop computers and then on the CDW Compare feature to do a comparison of two â€Å"high end† computers from two different manufacturers.How helpful would this analysis be if you were a computer buyer? For related discussion in the Basic Marketing text, see page 187. Internet Exercise: Thomas Register The Thomas Register has a very comprehensive database of firms at its web site (www. thomasregister. com). Click on search and it will prompt you to register. After you register (it’s free), search by product/service on the keyword welding. How could the information provided by your search help you if you sold a product that was used by fir ms in the welding industry? How could it help you if you were a buyer looking for a supplier of welding products?For related discussion in the Basic Marketing text, see page 199. Chapter 8: Improving Decisions with Marketing Information Internet Exercise: Yahoo Assume that your boss has asked you to do a customer satisfaction survey. As part of a situation analysis, you want to get ideas about what others have done in this area. Go to the web site for the Yahoo search engine (www. yahoo. com). In the dialogue box type â€Å"customer satisfaction survey† (include the quote marks) and click on search. Look at some of the web sites identified. How helpful is this ?How could it be improved? For related discussion in the Basic Marketing text, see page 222. Internet Exercise: Perseus Perseus Development Corporation sells software that allows a user to create on-line questionnaires that can be distributed by e-mail or used on the Internet. To see samples of on-line questions, go to the Perseus web site (www. perseus. com) and then click on Survey Samples. Do you think that it’s more convenient for a consumer to complete a survey on-line or with pencil and paper? For related discussion in the Basic Marketing text, see page 227.Chapter 9: Elements of Product Planning for Goods and Services Internet Exercise: Procter & Gamble Go to the Procter & Gamble web site (www. pg. com) and click on P&G Products. Find out the brand names of the different shampoos that P&G makes. How are the different brands positioned and what target markets do they appeal too? For related discussion in the Basic Marketing text, see page 259. Internet Exercise: FDA The FDA’s web site has a page on the new food label requirements that proclaims â€Å"grocery store aisles have become avenues to greater nutritional knowledge. Go to that page at Internet address (www. fda. gov/opacom/backgrounders/foodlabel/newlabel. html) and review the actual label requirements. Do you use this information in deciding what products to buy? For related discussion in the Basic Marketing text, see page 262. Chapter 10: Product Management and New-Product Development Internet Exercise: WebTV A number of software, hardware, and programming firms are working on products that deliver Internet information via TV. Explore the WebTV web site (www. webtv. com) to find out about one aspect of this idea.Do you think that many people will be interested in quickly adopting WebTV? How does it stack up when you consider the characteristics of an innovation reviewed above? For related discussion in the Basic Marketing text, see page 275. Internet Exercise: Marketing Intelligence Service Marketing Intelligence Service, Ltd. is a U. S. -based firm that tracks new consumer packaged goods–both successes and failures. Go to its web site (ourworld. compuserve. com/homepages/mktgintelsvc) and click on the What’s New button and then review its selections for new product innovations of the year.Do you think that these products offer customers superior value, or are they just me-too imitations? For related discussion in the Basic Marketing text, see page 283. Chapter 11: Place and Development of Channel Systems Internet Exercise: Gateway Gateway is a computer company that uses direct distribution to its customers in the U. S. Go to the Gateway web site (www. gateway. com) and think about how it is organized. Given that Gateway doesn’t use different channels of distribution to reach different types of customers, how does it segment the market?For related discussion in the Basic Marketing text, see page 301. Internet Exercise: Avon Avon sells cosmetics and other products through independent sales representatives (agents) and also though a catalog (both on-line and printed). Review the Avon web site (www. avon. com). Do you think that Avon’s independent sales representatives would view the web site as competing for their customers’ purchases and a source of conflict or would they think that it helps them promote the product and identify new prospects? Explain your thinking. For related discussion in the Basic Marketing text, see page 317.Chapter 12: Distribution Customer Service and Logistics Internet Exercise: Virtual Logistics Directory Large corporations often turn to other firms that specialize in logistics–transportation and warehousing services, consultants, developers of computer systems, and the like–to help implement the physical distribution aspects of their marketing strategies. The web site of the Virtual Logistics Directory (www. logisticdirectory. com) lists many logistics specialists and what they do. Go to the web site and select the Integrated Logistics category.Review the descriptions of some of the firms listed, and then pick one. Explain why a large corporation with a logistics problem might seek its help rather than just trying to tackle the problem internally. For related discussion in th e Basic Marketing text, see page 329. Internet Exercise: North Carolina Ports Authority A firm that is just starting to export to international markets may want help figuring out what shipping services are available. The North Carolina Ports Authority’s web site (www. ncports. com) helps provide such information.Go to the web site, select Port Services, and review the different firms and agencies that might be able to provide you with help if you had to ship a large quantity of furniture to the Middle East. Identify an organization from those listed that you might want to contact first, and indicate why. For related discussion in the Basic Marketing text, see page 334. Chapter 13: Retailers, Wholesalers, and Their Strategy Planning Internet Exercise: INTERSHOP INTERSHOP Communications develops and sells software that companies use to create â€Å"virtual stores† for Internet retailing.For example, it allows a seller to create an on-line catalog that is easy for consume rs to use and it has tools for analyzing sales and keeping track of customers. Go to the firm’s web site (www. intershop. com) and select Products. Review the information provided. (If your computer is equipped to view RealVideo video, you might also want to watch the demo. ) Do you think it would be easier for consumers if all Internet sellers used a common system, such as this one, rather than coming up with many different arrangements? Briefly explain your thinking. For related discussion in the Basic Marketing text, see page 359.Internet Exercise: Fastenal Visit the Fastenal web site (www. fastenal. com). Check out the different aspects of the Fastenal web site. Give examples of ways that the web site is intended to help Fastenal’s customers and suppliers. For related discussion in the Basic Marketing text, see page 370. Chapter 14: Promotion–Introduction to Integrated Marketing Communications Internet Exercise: Sony Sony produces a very wide variety of prod ucts. Does the information available on the web site (www. sony. com) appear to be part of an integrated marketing communications effort? Explain your thinking.For related discussion in the Basic Marketing text, see page 386. Internet Exercise: Campbell’s Soup Visit the Campbell’s Soup web site (www. campbellsoup. com). Does the web site make it easy for you to get information? Does it make you want to spend more time and get more information? Explain your answer. For related discussion in the Basic Marketing text, see page 395. Chapter 15: Personal Selling Internet Exercise: Motivating Tape Company The Motivating Tape Company sells various sales training videos. Go to the firm’s web site at www. achievement. com and then scroll down and select Sales Training.Review the list of sales training videos offered. If a sales manager were going to rely on some of these tapes for training people just moving into a sales career, what key areas of sales training would he have to cover by some other approach? For related discussion in the Basic Marketing text, see page 427. Internet Exercise: Symantec Symantec is the maker of various software products, including ACT! personal management software that is used by many salespeople to organize information about their customers, sales calls, and tasks they need to do. Visit the ACT! web site (www. ymantec. com/act) for information about this product. Give a few specific examples of ways that a salesperson could use ACT! to build better relationships with customers. For related discussion in the Basic Marketing text, see page 431. Chapter 16: Advertising and Sales Promotion Internet Exercise: NarrowCast Media NarrowCast Media is an Internet firm that provides services for firms that want to advertise on the Internet and also for web sites that host Internet advertising. Go to its web site (www. narrowcastmedia. com) and read about NarrowCast Media’s various services.Briefly describe the main benefit s it provides for advertisers and the main benefits it provides for host sites. For related discussion in the Basic Marketing text, see page 455. Internet Exercise: Catalina Marketing Catalina Marketing Corporation is a supplier of in store, electronic scanner activated consumer promotions. Go to the Catalina web site (www. catalinamktg. com) and select Manufacturer Solutions, then review information about its Sampling Programs. Briefly describe, in your own words, how the sampling program works and describe a situation in which a manufacturer might find it useful.For related discussion in the Basic Marketing text, see page 468. Chapter 17: Pricing Objectives and Policies Internet Exercise: International Currency Converter Xenon Laboratories has set up a web site with a system that uses current exchanges rates to convert one country’s currency to another. Go to the web site (www. ausmall. com. au), scroll down to the reference section, and click on International Currency Conv erter. How much is a $100 U. S. worth now in Thai bhats, British pounds, and German marks? How do those number compare with June of 1998 (See Exhibit 17-6)?For related discussion in the Basic Marketing text, see page 486. Internet Exercise: ValuPage Catalina, a firm that specializes in targeted sales promotions, set up an on-line system called â€Å"ValuPage. † Consumers can print out a sheet with a list of discounts that sponsoring supermarkets redeem with â€Å"web bucks†Ã¢â‚¬â€œwhich the consumer can then use for any future purchase at the store. Go to the web site (www. supermarkets. com), enter your zip code, and review the system. Do you think this system will be more or less susceptible to fraud than regular coupons? Explain your thinking.For related discussion in the Basic Marketing text, see page 492. Chapter 18: Price Setting in the Business World Internet Exercise: Sporting Auction Evergreen Information Technology launched an Internet auction site for many d ifferent categories of sporting goods. Go to the auction web site (www. sportingauction. com) and review the activities in two auction categories, one for a sport that is in season and another sport that is not. For example, you might compare snowboarding and golfing. Do you think that season makes a difference in the bidding activity? Explain your thinking.For related discussion in the Basic Marketing text, see page 524. Internet Exercise: Tiffany Tiffany & Co. is widely recognized as one of the world’s premiere jewelers. It commands high prices for what it offers. Go the Tiffany web site (www. tiffany. com) and review the different sections. Do you think that the web site communicates superior customer value to the Tiffany target market? Explain your opinion and point to specific aspects of the web site that support your view. For related discussion in the Basic Marketing text, see page 528. Chapter 19: Implementing and Controlling Marketing Plans: Evolution and RevolutionI nternet Exercise: BaRaN Systems BaRaN Systems Ltd. has developed a software product called SQC for Excel that works with the Microsoft Excel spreadsheet program and makes it easy to do the types of analysis that are useful for quality management. Go to its web site (www. baran-systems. com) and click on the link for SQC for Excel and then at that web page scroll down and look at the â€Å"quick tour† section. What is it about the graphs that makes it easy to see which areas need special attention? For related discussion in the Basic Marketing text, see page 544. Internet Exercise: CopernicusCopernicus: The Marketing Investment Strategy Group has developed a comprehensive procedure, The Copernican Decision Navigator, that its consultants have used as the basis for performing marketing audits for many major corporations. The procedure determines if the firm is using â€Å"best practices† in planning and implementing its strategies. Go the Copernicus web site (www. copern icusmarketing. com), scroll down to the items under â€Å"about Copernicus,† and select the link for Marketing Best Practices. Review what is involved in the Copernicus procedure. What are the advantages of having outside experts do this sort of audit?For related discussion in the Basic Marketing text, see page 562. Chapter 20: Managing Marketing's Link with Other Functional Areas Internet Exercise: Cductive CDuctive offers an on-line service in which the customer selects certain tracts of music and, for a fee, CDuctive will create a custom CD of those selections. Explore the CDuctive web site (www. cductive. com), and then list what you think are the major (1) strengths and (2) weaknesses of its approach. For related discussion in the Basic Marketing text, see page 578. Internet Exercise: ITW ITW, Inc. has a variety of different businesses that produce different products.Go to the ITW web site (www. itwinc. com) and then select the list of other ITW web sites. After you brie fly review the descriptions of ITW’s different web sites, select ITW Brands and study it in more detail. From a cost standpoint, does it make sense to have a unit like ITW Brands? Why or why not? For related discussion in the Basic Marketing text, see page 581. Chapter 21: Developing Innovative Marketing Plans Internet Exercise: Survey of Buying Power The Survey of Buying Power has an on-line site that is available on a pay-for-use basis. However, a sample section is available without charge.Go to the web site (www. sbponline. com) and select Samples and then select Samples of Site97. Look at the Income Trend Report (and others if you wish). How would this information be helpful to a retail chain that is considering a new facility for this sample market? For related discussion in the Basic Marketing text, see page 604. Internet Exercise: Maytag Go to the Maytag web site (www. maytag. com) and review the information about the Neptune line. Do you see any indication that the st rategy for Neptune is changing from what is described in the case that introduces this chapter? Explain your point of view.For related discussion in the Basic Marketing text, see page 614. Chapter 22: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges Internet Exercise: Ikea Ikea is an innovative furniture company that is using its web site to refine its strategy. It has always relied on information technology to keep costs low by tracking sales at individual stores and using the information to control inventory and reduce shipping costs between the factory, distribution centers, and its massive retail stores. Go to the Ikea web site (www. ikea. com). What else does the web site tell you about Ikea’s strategy?Will the web site help Ikea offer superior value? Explain your answer. For related discussion in the Basic Marketing text, see page 629. Internet Exercise: Obvious Implementations Obvious Implementations Corp. is a small consulting and manufacturing firm. Go to its web page (www. obviously. com) and then select How to stop junk mail, e-mail and phone calls. Read through the information and, if you wish, follow some of the links to other sites listed. Should it be easier to avoid mail, e-mail, and calls you don’t want? Explain your thinking. For related discussion in the Basic Marketing text, see page 636.