Strategic Analysis Essay Example | Topics and Well Written Essays - 2500 words

Strategic Analysis - Essay Example ectives. With this concern, the major opportunities and threats that are likely to be faced by Zarraffa’s Coffee owing to the prevailing macro environmental factors have also been illustrated in the report. In addition, the discussion of this report will also focused on analyzing the firm’s internal environment including its key resources or competencies that could provide adequate benefits for Zarraffa’s to achieve competitive advantage in the retail coffee and beverages industry. In relation to preparing the report, qualitative methodology has been used. Majority of the information related to the preparation of the report has been gathered from secondary sources such as scholarly articles, governmental report and company website among others. Zarraffa’s is an Australian based coffee retailer and beverage company which was founded by Kenton Campbell in the year 1996. The company is also known as one of the fastest growing franchised coffee retailers acros s the world. Currently, the organization operates around 50 coffee retail franchised stores across the different locations within Australia (Zarraffa’s Coffee, 2013). Macro Environment Analysis The macro environmental factors are the most crucial aspects that highly influence the management as well as operational performances of the organization. In relation to the macro environmental factors of Zarraffa’s, PESTEL model has been utilized with respect to clearly identify the potential opportunities and threats for Zarraffa’s in the Australian market. PESTEL Model Political Factors Political factors can have a major bearing upon a business organization to efficiently coordinate its number of vital operations. These factors can create a positive impact upon an organization’s business in terms of making its operations smoother, however political disturbances and imbalances, unrelenting governmental regulations can also provide obstructions for a business to o perate efficiently within a nation. In relation to Zarraffa’s, the company tends to offer its range of coffee products and beverages in various regions in Australia complying with adequate political guidelines of the nation. The company focuses towards abiding by diverse regulations as well as guiding principles of the governmental institutions in terms of practicing its business operations within Australia. Thus, this factor can be quite crucial for the organization in its endeavor to make internal presence as different nations have diverse business operational guidelines, which are quite crucial for a new business entity to ensure positive political or governmental influence and support. Economic Factors In relation to economic influences, Australia is one of the fastest growing nations in terms of making a stable economic position by increasing its annual Gross Domestic Product (GDP) growth and other macro-economic factors (Australian Trade Commission, 2012). In relation t o the industrial scenario, it is observed that coffee is regarded as the most favored hot drink in the nation. A

Basketball and football Essay Example for Free

Basketball and football Essay In countries throughout the United States, most people enjoy high scoring sports with a great deal of physical contact. In my opinion, both Basketball and American Football are the two most popular sports here that fall under that category. In which as fans we can all appreciate and participate with our own friends and family members. Furthermore, not only can we watch these games at home, but we can be play them back at as well as a healthy alternative. There are a variety of differences and similarities between these two sports. Basketball and American Football can be broken down into three parts that will enable you to know visualize the major points: players, equipment and game style. First of all, there are noticeable differences between these two sports that hold different qualification for each player. In basketball it is necessary for players to use their lower body quickness in order to run down back and forth the basketball court as quickly as possible. In contrast, football players are required to use their upper body strength so that there able to make and take some hard hits during the game as a method of defense against the other team. Also both of these sports hold different physical qualities that are required in order to play the game efficiently. For example, basketball players who play the center position on average weigh roughly around 265 pounds with the physical stature being strong and a bigger player who can clog up the basket area. While in football, the wide receiver position is held by a player averaging in at 200 pounds. They too are built with a strong physique yet can run down the field rapidly as needed. Secondly, both of these sports have different equipment needs. As we know both basketball and football use different kind of balls. Basketball is played with orange shaped ball, as were in football they use a prolate spheroid shape ball. In addition, they both use completely different shoe gear. Seeing that basketball is played indoor on a wooden floor it requires players to use sneakers that come up a bit higher in order to protect the ankles. The sneakers are also designed differently as they are meant to allow them to have a good bounce in them, since that too is an important factor in basketball. On the other hand, football players use cleats since they play outdoors in the grass. They need have a good and secure grip on the ground beneath them in order for effective and optimum playing. The safety gear that both sports’ wear differ as well, in order to better protect and suit their needs. In both sports, they wear mouth guards. But in American Football, they also use helmets and shoulder pads. Finally, it comes down to the differing style of play. Basketball and football have decidedly different styles of play based on the rules. Basketball is viewed as a non-contact sport, in which by the rules that if any physical contact is made by a player it is a violation, resulting in a personal foul. Conversely, football is well known for its physical contact playing style. Knowingly that every play within the game will consist of some sort of tackling, aggressive play and head on collisions. Also basketball is more of a high scoring game than football. Simply because in basketball teams are given 2 or 3 points (depending where you’re shooting from) each time they make the ball in the basket. In contrast, football teams are only granted 6 points for a touchdown and 3 points for a kicked field goal, much more difficult than basketball because of the physical playing style. In conclusion, although their game styles are completely different, both receive numerous amounts truly dedicated fans. Not only just for the love of the sport, but toward particular teams as well as players in the league and coaches. In addition, their equipment provides protection that benefits each player. This protective gear prevents them from most devastating hits that may otherwise end their career with a nasty injury. Athletic players are seen in the eyes of each fan, whether in the stands or back at home, as role models and encouragement to engage in sports. Let face it, every fan wishes to live the life of an athletic player and be able to play its sport under the spotlight that is viewed by millions.

Project Management in SMEs

Project Management in SMEs Introduction To Literature Review: Literature Review is done by knowing a clear definition of SMEs, its role in the Indian economy. Then it is carried out by analyzing the definition of project management and its significance in the SMEs, and next the definition of project and its factors affecting the success of a project was discussed. This chapter also deals with the staffing of a project manager, project team and also about the effective skills required for a project manager to implement successful project management methodologies into an organization. This literature also covered by the critical analysis of effective risk management through Project Management practices in Small and Medium Enterprises in India, here mainly it was discussed about the types of risks that an organization encounters while establishing/choosing a vendor, and ways of analysis this risks through project management techniques. This chapter also explained about the ways of implementing a project management methodology into an SME and effec ts that a SME might face of implementing the project management tools and techniques. Definition Of Smes: SMEs can be defined in different forms due to broad mixture in business. A company is generally distinguished as a small or medium enterprise based on the total number of employees, total turnover and the balance sheet of the company. A company is considered as a small firm if it has 50 employees with an annual turnover of about  £5.6 million and an annual balance sheet of  £2.8 million. On the other hand, a firm is said to be a medium firm when it has a total of 250 employees with a turnover of about  £22.8million and a balance sheet of  £11.4million (company act 1985, Duke Ghosh, 2009). Role Of Smes In Indian Economy: SMEs are most vital part in the sustainable economical growth and participating in a long run of development of industrial sector from the past few years, SMEs are considered as a stepping stone for industrial growth. It has ability to transfer technology and modernization which brings economic success in this modern era. In the development of better and greater economic growth, competition, flexibility and good communication are the required parameters, for this reason SMEs are becoming like of mixture of competitiveness within the economy while providing flexibility and better communication system to the complete industrial structure. (Duke Ghosh, 2009) Recently the dimensions of the SMEs are seems likely to be increasing due to the government promotions and also its encouragement towards the goal of SMEs. The growth of the entrepreneurial sector have been raised from 870,000 businesses in 1981 to nearly 4 million by 2003 by the identification of importance and its development by the government of India. And it stood next to gigantic agricultural sector in providing the employment opportunities (Boulton and Turner, 2005). This SMEs are acting like a job providing engines, which indirectly raising the per capita of the nation economy. Such firms make significant contributions to private sector employment and output, which appears to be increasing overtime (Storey, 1994). The following diagram show the growth and the position of the development of the small industries development as on 2003 according to SIDO Importance Of Smes To The Indian Economy SMEs, however defined, constitute the majority of all enterprises in most of the economies in the world (OCED, 1998). SMEs are not only acting as employment generator but also achieved outstanding credit in Indian economy by satisfying its core objectives and being as a supporting body to the large firms. This is one of the main reasons why the SMEs have gained more attention from the politicians, policy-makers and academics. However, between 1945 and the late 1960s there was little interest in small firms from either the government or academics. According to Mr. Pawan Kumar Bansal, Union Ministry of State for Finance, Bangalore; says that SMEs are playing a vital role in socio-economic policies of Government of India. Foreign earning and imports of foreign capital goods contribution have been developed by the socio economic policies of India (Mr. Pawan Kumar, 2007). â€Å"SMEs were regarded as being poorly managed, badly organised and reliant on outmoded technologies to produce inferior products and services† (Manson and Harrison, 1990). For this reason the Indian government have implemented many more SMEs policies for their development and mainly focused on promoting clusters of small firms and supporting the development of high-tech sector such as IT sectors and BPOs in Bangalore, and this policies have been very successful as a results many of the outsourcing companies from western countries are moving to India (Patrizio B, et. al, 2006). Starting with wide varieties of situations and approach, a huge amount of SMEs policies have been implemented in developing countries like India (Parrilli, 2005). Services have been the fastest-growing sector of the Indian economy over the past decades and helped to accelerate the overall growth rate of the economy, this services have also made Indias integration with the world economy through trade and capital flows (Uma Kapila, 2009). The phenomenal growth and export in the services like IT and BPO have placed India on the global map as one of the major players in the field of knowledge-based services this also helped to improve the performance of the other sectors of the economy in turn helping the overall development. Project Management And Its Significance: This literature says before knowing about the significance of project management in SMEs, it is important to explain the definition of the project management and its approach of implementing a project as follows: Project Management: â€Å"The purpose of project management is to plan, organize and control all activity so that the project is completed as successfully as possible in spite of all the difficulties and risks. This process starts before any resources are committed and must continue until all work is finished. The aim is for the final result to satisfy the objectives of both the project performer and the customer† (Lock, 2006, p. 1) It is known that projects differ from each other in more ways than one. They might differ in their structure, mode of operation, funds allocated or even the strength they comprise of or their criticality to the business (Heldman, 2005). Even though a similar project has been carried out in the past, the projects may differ in one or more aspects such as administrative, physical and commercial or a change in ways of working etc; managing projects is a part of every business and is quintessential for the smooth functioning and success of the project. Project Management includes all necessary activities needed to plan and execute a project (Lock, 2006). The two most important steps involved in going about a project are discussed below: Step 1: To decide what needs to be done before the initiation of a project. The next set of requirements from a project management perspective is to estimate the cost of completing the project and make sure there are necessary funds available to execute the project so as to bring name and revenue to the organization (Burke, 1999). People involved in planning the project need to ensure beforehand that they pick the right people to execute the project and make them aware of the responsibilities assigned to them. Project resources are the key to success in any project and its rarely a one-man team (Heldman, 2005). Therefore, a team that has an open-minded approach towards the project and all other people involved in the project and be prepared to motivate and be motivated throughout the length of the project. This will encourage teamwork and commitment in what they do. One of the key things to ensure higher rates of success in a project is to choose the right mix of people and the right level of management looking for process improvement and thereby providing value added services to customers. This in turn helps organizations improve their efficiency and help them to stay on top of its competitors (Baron, 2005). Every person involved needs to be updated by project leaders and start the chain of communication to ensure adequate buy-in and at the same time commit to managing their expectations from the project. The main aim of communication is to keep everyone updated about any latest developments that take place and keep them engaged (PMBOK, 2004). Provide clear briefs to people involved in the project to obtain commitment on work and deliveries (Baron, 2005). The support of sponsors is very important by making them commit to your approach. (Burke, 1999) Meeting the expectations of the stakeholders, meeting of objectives and requirements, meeting budget, meeting deadlines etc (Jeston and Nelis, 2006). Step 2: We live in a competitive world where every firm attempts to make optimum use of resources and to be better than their competitors. This brings the area of proper planning and execution of the project. The main objective of planning a project well is to schedule and chart out the complete work for the project and then ensure arrangements are in order for work to start and continue as per schedule (Burke, 1999). For a project to be successful and be admired, it should complete on schedule. The project needs a leader who takes the final decision with the consent of all members in his/her team. He/she should portray the courtesy to listen to subordinates even when the opinion is not being considered or implemented (Heldman, 2005). People who carry out the project should be taken into confidence and spoken to regularly. Most importantly, a project should have clarity about its scope, objectives, responsibilities, cost and accountability, scope for improvement should be considered and stockholders should be kept in confidence (PMBOK, 2004). The literature explains that the project management methodologies allow the project manager to allocate and make more work done with less people and time, so it would be beneficial to the SME where it have very fewer people working. And also its make the organisation more effective by implementing more project in lesser time by providing clear control on the projects scope and changes and implementing them more effectively and efficiently. Project management improves the line of decision making; it also increases the quality of a project. SMEs can handle more projects by raising its business (Kerzner, 2003). Definition Of Project And Its Success Factors: Project: A project is a series of activities or tasks that have a specific objective to be completed within a determined specification; have defined start and end dates; usually funded and require resources (Kerzner 2003; Cooke-Davies 2001). When the project is said to be failed it is waste of capital, time and resource, a new lessons /techniques/methodologies have to be learned from the failed projects and the project manager/ project authorities have to continue for the new project. Project management is one of the methodologies which deals the projects in a systematic manner and says the following are the essential factors to be made to complete successfully with a project: Clarity In Project Definition: Project manager has to make himself/herself with a clear idea and definition of the project, but not only he/she but also to his/her project team. He/she have to make sure about the project specifications such as â€Å"what the project is about† its aim, objectives, and its deliverables, etc. For example we can talk about the case studies of some unsuccessful projects due to indistinct objectives and aims which are documented by Gray and Larson (Gray and Larson, 2002). Thus the chances of increasing project success lies in clear and distinct objectives and aims. Project Feasibility: It is one among the factors which talks about the social, economical, political, human, cultural, financial and environmental factors which underpins to the achievement of the project (Fullen, 2005). According to Khatib this factors would produce a good result for a project which undergoes a serious study, specified aim and objective and allocation of time (Khatib, 2003). Consistent feasibility makes a project manager to define himself with a clear and well project aim, time specifications, and allocation of resources. A positive feasibility brings more chances to lead a project success. Planning: â€Å"According to Kerzner project planning; in general, can best be described as the function of selecting the enterprise objectives and establishing the policies, procedures, and programs necessary for achieving them. It can be described as a forecasting the environment and predefined course of action† (Kerzner, 2003 ). According to Kerzner, there are four basic reasons for project planning: Elimination or reduction of uncertainty. Improving the efficiency of the operation. Understanding a better understanding of the objectives. To provide a basis for monitoring and controlling work. (Adapted from Kerzner, 2003) Work Breakdown Structure (Wbs): The important task to be done by the project manger after project planning is dividing the work into manageable tasks. â€Å"The work breakdown structure is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team, to accomplish the project objectives and create the required deliverables† (PMBOK, 2004). The work breakdown structure also explains complete scope of the project. The WBS divides the work into small tasks which are manageable and will have a specific responsible authority will be allocated, it will be in a manner of integratable so that the total work package is the summation of subdivided elements, and it will be as much as easy to be measure in terms of progress like estimating cost, scheduling, monitoring, and controlling (Kerzner, 2003). Involvement Of Project Stakeholders: â€Å"Project stakeholders are the individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion. They may also exert influence over the projects objectives and outcomes† (PMBOK, 2004). Project stakeholders are also a part of the project success, to ensure this success the project team have to identify their requirements, expectations, and their influence on the project. Stakeholders may have various levels of authority/responsibility on the project; they may vary from occasional contributors to full sponsors for the project. â€Å"Stakeholder who ignores this responsibility can have a damaging impact on the project objectives. Likewise, project managers who ignore stakeholders can expect a damaging impact on project outcomes† (PMBOK, 2004). The above figure shows that every individual project is similar to the structure of the earth where in each sector plays an important role here the most interior structure is project manager who forms the base of any project. The project manager forms the integral part of a project management team along with whom he carry on the project. The project manager and the project management team together comprises of a project team where in this team wholly concentrate on the project that is to be taken. These three together works for the satisfaction of the stakeholders interested in the completion of the project it may comprises of the senior management of the company the owners and the clients of the company. Staffing The Project Manager And Project Team: As mention above to my literature the successful project includes; on time delivery, must come across stakeholders expectations, within budget and have to congregate the project deliverables (Cooke-Davies, 2004). Project manager is one who plays a vital role to mix all stuff to formulate the project to a success. â€Å"Project manager is the individual ultimately responsible for managing and leading the project to its successful conclusion† (Paul D, 2005). It is a role that entails a mix of competencies, combining management with leadership and political awareness (Pinto, 2000). Though understanding the role of project manager sounds good, but the upper management always find difficulties in the selection of a correct project manager. â€Å"Project management is said to be successful only if the project manager and his team are totally dedicated to the successful completion of the project. This requires the project team and project manager must have good understanding of the fundamental project requirements† (Kerzner, 2003). For this reason the upper management have to look up/focus at the following skills in the selection process from the individual to appoint him/her as a project manager: (this are requirements demanded by a SME in its advertisement for a facilities planning and development project manager (adapted from The New York Times, January 2, 1972) (source: Kerzner, 2003) Business Management Skills: If project management is itself an organization, as the whole project group will work as a solo unit for the achievement of a common goal, then the project manager is the CEO of this organization. So the organization skills are predominantly important during project development. With strong business management skills, he/she must be able to achieve the most excellent hysterics across teams and in the midst of all project resources of the organisation. â€Å"It requires defining the reporting relationship, responsibilities, line of control, and information needs. A good program plan and a task matrix are useful organisation tools plus clear defined program objectives, open communication channels, good program leadership, and senior management support† (Kerzner, 2003). Leadership Skills: Project manager is the one who has to manage his/her team and make them to follow him/her, has to act as a leader. He/she has to have a clear project leadership and own direction to direct the team members. He/she must be able to solve the conflicts, assistance in problem-solving, as a project leader he/she as to represent his/her team to upper level management. He/she as to motivate the project team members towards common vision. Project manager as a leader has to remain as a inspiration to his/her project team (Kerzner, 2003). Technical Skills: Technical skills is an superlative addition remark for a project manager, if his proficiency applicable to the project, by this he/she can have good thoughts and understanding about the projects and can work out more for his/her profound project objective (Horine 2005; Murch 2001). Now a day this skills achieved a greater importance, without technical skills a project manager cannot understand the present market, updated technology and the environment of the business. With the help of these technical skills one can understand the consequences or technical risks that encounter in the project, for example a software engineer being as a project manager and handling a software development project can easily sort the risks that appear in that project. He/she can make sure of his/her project team with a clear understanding of the foreseen risks that may appear in the project. â€Å"According to Kerzner, 2003 the technical expertise is composed of the following understanding: Technology involved Engineering tools and techniques employed Specified markets, their customers, and requirements Product application Technological trends and evolutions Relationship among supporting technologies People who are part of the technical community† (Source: Kerzner, 2003) Communication Skills: Another important skill set must be posed by the project manager is communication skills. â€Å"Project manager influence people o take action, this requires an ability to communicate in a style appropriate for the individual concerned† (Paul D, 2005). Project manager is the communication channel throughout the project. Project manager is effective means of communication hub between the project team and the end users. Project manager have to act as a communication radio and have to carry the stakeholders expectations towards the project team and have to bring the project to a successful effective end. Moreover, a successful project manager ensures smooth information sharing across teams via instilling a communication-driven environment that allows for efficient spread, user-friendliness and use of information. Conflict Resolution Skills: No project end up successfully without any conflicts, there might be foreseen risks or conflicts between the project team members or conflicts between project team and stakeholders. So this is the main reason that the project manager, the CEO of project management organization has to possess the problem solving skills/conflict resolution skills. Project success lies with how well the project manager solves the problems/conflicts. Soundness of the solution taken by the project manager with a logical and analytical thinking conforms how well the project manager good at reaching the project to a successful end. However these conflicts are beneficial to a project which indirectly increases the competiveness among the team members involved the project (Kerzner, 2003). Project Management Experience: Implementing successful project management lies in the hands of able project manager, so the project manager is responsible character and must possess prior project management experience in general. Project management is body of knowledge which can be learned from the realistic knowledge, but its not a skill which comes by itself. A well qualified project manager will be very much able to implement a successful project management into an organization. Past knowledge makes a manager to overcome all the challenges that he/she face in completing a project by using project management. Other Skills: There are so many other skills such as planning, resource allocation, management support building, and time management skills, etc, which make the project manager to lay his/her path successful in controlling the projects successfully. Not only this but also the entrepreneurial skills and administrative skills are very important in understanding the tactics and implement them in his/her own project and make the project victorious (Kerzner, 2003). A Critical Analysis Of Effective Risk Management Through Project Management Practices In Small And Medium Enterprises In India: Risk: Vose (2008, p. 3) defines the term risk as â€Å"a random event that may possibly occur and, if it did occur, would have a negative impact on the goals of the organization. Thus, a risk is composed of three elements: the scenario; its probability of occurrence; and the size of its impact if it did occur†. Any risk could prove an organisation wrong in its quest to achieve success. Risks can occur in various forms and their impact can vary under a lot of factors. In a high cost business environment that is under fierce competition from companies not just on a national, but also on a global level, the chances of risks arising multiply quickly and heavily (Crouhy et al., 2000). A firm can easily lose its name in the market because they had overlooked a miniscule drawback that their competitors overcame. Therefore, risks not only carry financial implications with them, but also other factors such as brand image, market credibility or loss of market share. To analyse and understand these implications, it is necessary to understand the types of risks and their varying characteristics (Flynn, 2008). Click and Duening (2004) have come up with a list of the various types of risks such as human capital risks, Confidentiality risks, overall project risks, and scope risks, delay risks, estimation risks and dependency risks may occur in the business. In addition to this there might be property (intellectual), legal, value related or unavoidable natural risks that generally exist and arise in a business. Types of risks: Human capital risks This has always been an important part of the business activity. People who work towards organizational goals are the most critical assets of the firm and the project (Beasley et al., 2004). A loss of an employee who was very important to the smooth functioning of a project can be a risky proposition because a new individual joining the project would need time to understand and evaluate a lot of factors contributing to the project. This would invariably lead to loss of productivity, a slump in team morale or even loss of time and money (Flynn, 2008). Project risks – These risks arise because of a lot of other risks contributing to the main risk of a project being delayed or even shelved in certain cases. There have also been instances where proper planning and regulation were absent or goals misunderstood leading to extended timeframes to complete the project thus leading to increased investments of critical resources (Sanchez Canton, 1998). A very good example of project risks can be seen in Government funded public projects or even military developmental projects where public time and money is involved. Confidentiality risk: The second most important risk that may appear in dealing a project is confidentiality risk, it mostly appear due to lack of secrecy. This is especially for the large projects. The information have to be kept confidential, if not the competitors with large team members may understand the work flow/formulae of the project and be able to built the project earlier as before you can. We must be careful especially when we involve contractors or outsiders into the project. Effective project management may help in having a good communication line among the team members, marketing staff, and contractors; this may helps to keep the information confidential (T Kendrick, 2009) Scope risks: This is another type of risk which mostly appears when the project starts to take a shape. This is due to requirement of a new technology, unfamiliar developments of tools or methods, poor testing criteria, inconsistent specification, undefined product definition, and technical complication (T Kendrick, 2009) Delay risks: Delay risk is part of schedule risks and these are after scope risks, these risks mainly appear due to the delay of the essential parts required for a project, it include customs, Paperwork, delivery, and related concerns. This is also due to the delay of information needed, communication gap and misunderstanding among the team members/ project stakeholders, etc. Due this factor the project may delay for some days, months or may be for years (T Kendrick, 2009) Estimating risks: Estimating risk appears mostly in technical projects. Project manager mostly says the typical risks arise in the project is estimating risks. Estimating risks occurs when there are learning curves ( when the quality of estimates of new technology, or new people involvement is not good), judgements (misunderstanding, disintegration of work), and imposed deadlines (forceful deadlines set in advance, when an objective is retained) (T Kendrick, 2009) Dependency risks: Other projects, infrastructure factors, and legal issues are three sub categories of dependency risks. In general large project are sub divided into small projects and mostly these small project will be dependent on the other, unfortunately when one small project is delayed/stopped the other projects which are dependent on it will be delayed. â€Å"Even for the interfaces that were defined in advance, delay was fairly common due to the uncertainty in each project† (T Kendrick, 2009) The above section has detailed the different types of risks that normally exist or co-exist in projects. Their modes of occurrence and the impact they can have on the project and the firm has been explained in brief. The following part would attempt to explain ways that firms, projects and managers involved employ to analyse and manage the same since the occurrence of a risk can pose a threat to the above in terms of time, money or even failure to deliver what has been promised. Analyzing And Managing Risks: Ways to manage risks with limited impact on other resources: Risks are present in abundance in any IT and outsourcing industries because of the processes being tightly interlinked such as business processes, database, or process reengineering. Therefore, it is very important to: Identify risks. Weigh risks for probability of risk occurring. Weigh risks for criticality/impact at your operations. Plan to reduce risk (to zero if appropriate, for example for a safety critical industry) (Sanchez Canton, 1998). A simple way of explaining risk analysis is to take an airplane for example because the traveler, who is the user, has zero tolerance to risks. In similar manner, risk analysis can be carried out for other products and services too. The most important indicative risks are business continuity management risks, information security/data privacy risks and process related risks (Lock, 2001). The need to evaluate and monitor risks involved from an Enterprise Risk Management (ERM) perspective takes higher priority over other means of analysis in the information age of business (Flynn, 2008). It can be seen in the ERM diagram below the different risks across the entire organization that exist or arise and the need for them to be managed effectively (Beasley et al., 2004). An important reason firms should stress on analysing risks is the realization that risks delay chances of sticking to time schedules agreed by project leaders to customers in turn; leading to increased investment of resources in the form of man hours and time (PMBOK, 2004). This causes increase in investment of capital, which is something neither customers nor firms involved like to do. Risks occur at every stage of a project thus increasing stress on carrying out risk analysis and minimize the effects of risks on a given project. It means that risks and errors still occur when thorough analyses of their occurrence have been chalked out and steps have been implemented to minimize the effects they have on a project (Burke, 1999). However, prior knowledge of a risk occurring at a given period in the project enables people involved to counter the risk effectively and minimize or erase the impact it could have had on the project. Before the project could be initiated, assessing risks by knowing in exact what the project intends to do and the reason for it to be outsourced becomes very important. This could include assessing project behaviour under varying market conditions and the expected growth rate it can attain within a given period of time (Dickson, 2003). Risks need to be analyzed in a detailed manner by the top management in order to understand the various options available to conduct a cost-benefit analysis. This understanding and analysis becomes significant in implementing a sound risk management plan. A project taken up poses as a risk in itself to explore opportunities that lie waiting on the other side. Therefore, threats need to be minimized a Project Management in SMEs Project Management in SMEs Introduction To Literature Review: Literature Review is done by knowing a clear definition of SMEs, its role in the Indian economy. Then it is carried out by analyzing the definition of project management and its significance in the SMEs, and next the definition of project and its factors affecting the success of a project was discussed. This chapter also deals with the staffing of a project manager, project team and also about the effective skills required for a project manager to implement successful project management methodologies into an organization. This literature also covered by the critical analysis of effective risk management through Project Management practices in Small and Medium Enterprises in India, here mainly it was discussed about the types of risks that an organization encounters while establishing/choosing a vendor, and ways of analysis this risks through project management techniques. This chapter also explained about the ways of implementing a project management methodology into an SME and effec ts that a SME might face of implementing the project management tools and techniques. Definition Of Smes: SMEs can be defined in different forms due to broad mixture in business. A company is generally distinguished as a small or medium enterprise based on the total number of employees, total turnover and the balance sheet of the company. A company is considered as a small firm if it has 50 employees with an annual turnover of about  £5.6 million and an annual balance sheet of  £2.8 million. On the other hand, a firm is said to be a medium firm when it has a total of 250 employees with a turnover of about  £22.8million and a balance sheet of  £11.4million (company act 1985, Duke Ghosh, 2009). Role Of Smes In Indian Economy: SMEs are most vital part in the sustainable economical growth and participating in a long run of development of industrial sector from the past few years, SMEs are considered as a stepping stone for industrial growth. It has ability to transfer technology and modernization which brings economic success in this modern era. In the development of better and greater economic growth, competition, flexibility and good communication are the required parameters, for this reason SMEs are becoming like of mixture of competitiveness within the economy while providing flexibility and better communication system to the complete industrial structure. (Duke Ghosh, 2009) Recently the dimensions of the SMEs are seems likely to be increasing due to the government promotions and also its encouragement towards the goal of SMEs. The growth of the entrepreneurial sector have been raised from 870,000 businesses in 1981 to nearly 4 million by 2003 by the identification of importance and its development by the government of India. And it stood next to gigantic agricultural sector in providing the employment opportunities (Boulton and Turner, 2005). This SMEs are acting like a job providing engines, which indirectly raising the per capita of the nation economy. Such firms make significant contributions to private sector employment and output, which appears to be increasing overtime (Storey, 1994). The following diagram show the growth and the position of the development of the small industries development as on 2003 according to SIDO Importance Of Smes To The Indian Economy SMEs, however defined, constitute the majority of all enterprises in most of the economies in the world (OCED, 1998). SMEs are not only acting as employment generator but also achieved outstanding credit in Indian economy by satisfying its core objectives and being as a supporting body to the large firms. This is one of the main reasons why the SMEs have gained more attention from the politicians, policy-makers and academics. However, between 1945 and the late 1960s there was little interest in small firms from either the government or academics. According to Mr. Pawan Kumar Bansal, Union Ministry of State for Finance, Bangalore; says that SMEs are playing a vital role in socio-economic policies of Government of India. Foreign earning and imports of foreign capital goods contribution have been developed by the socio economic policies of India (Mr. Pawan Kumar, 2007). â€Å"SMEs were regarded as being poorly managed, badly organised and reliant on outmoded technologies to produce inferior products and services† (Manson and Harrison, 1990). For this reason the Indian government have implemented many more SMEs policies for their development and mainly focused on promoting clusters of small firms and supporting the development of high-tech sector such as IT sectors and BPOs in Bangalore, and this policies have been very successful as a results many of the outsourcing companies from western countries are moving to India (Patrizio B, et. al, 2006). Starting with wide varieties of situations and approach, a huge amount of SMEs policies have been implemented in developing countries like India (Parrilli, 2005). Services have been the fastest-growing sector of the Indian economy over the past decades and helped to accelerate the overall growth rate of the economy, this services have also made Indias integration with the world economy through trade and capital flows (Uma Kapila, 2009). The phenomenal growth and export in the services like IT and BPO have placed India on the global map as one of the major players in the field of knowledge-based services this also helped to improve the performance of the other sectors of the economy in turn helping the overall development. Project Management And Its Significance: This literature says before knowing about the significance of project management in SMEs, it is important to explain the definition of the project management and its approach of implementing a project as follows: Project Management: â€Å"The purpose of project management is to plan, organize and control all activity so that the project is completed as successfully as possible in spite of all the difficulties and risks. This process starts before any resources are committed and must continue until all work is finished. The aim is for the final result to satisfy the objectives of both the project performer and the customer† (Lock, 2006, p. 1) It is known that projects differ from each other in more ways than one. They might differ in their structure, mode of operation, funds allocated or even the strength they comprise of or their criticality to the business (Heldman, 2005). Even though a similar project has been carried out in the past, the projects may differ in one or more aspects such as administrative, physical and commercial or a change in ways of working etc; managing projects is a part of every business and is quintessential for the smooth functioning and success of the project. Project Management includes all necessary activities needed to plan and execute a project (Lock, 2006). The two most important steps involved in going about a project are discussed below: Step 1: To decide what needs to be done before the initiation of a project. The next set of requirements from a project management perspective is to estimate the cost of completing the project and make sure there are necessary funds available to execute the project so as to bring name and revenue to the organization (Burke, 1999). People involved in planning the project need to ensure beforehand that they pick the right people to execute the project and make them aware of the responsibilities assigned to them. Project resources are the key to success in any project and its rarely a one-man team (Heldman, 2005). Therefore, a team that has an open-minded approach towards the project and all other people involved in the project and be prepared to motivate and be motivated throughout the length of the project. This will encourage teamwork and commitment in what they do. One of the key things to ensure higher rates of success in a project is to choose the right mix of people and the right level of management looking for process improvement and thereby providing value added services to customers. This in turn helps organizations improve their efficiency and help them to stay on top of its competitors (Baron, 2005). Every person involved needs to be updated by project leaders and start the chain of communication to ensure adequate buy-in and at the same time commit to managing their expectations from the project. The main aim of communication is to keep everyone updated about any latest developments that take place and keep them engaged (PMBOK, 2004). Provide clear briefs to people involved in the project to obtain commitment on work and deliveries (Baron, 2005). The support of sponsors is very important by making them commit to your approach. (Burke, 1999) Meeting the expectations of the stakeholders, meeting of objectives and requirements, meeting budget, meeting deadlines etc (Jeston and Nelis, 2006). Step 2: We live in a competitive world where every firm attempts to make optimum use of resources and to be better than their competitors. This brings the area of proper planning and execution of the project. The main objective of planning a project well is to schedule and chart out the complete work for the project and then ensure arrangements are in order for work to start and continue as per schedule (Burke, 1999). For a project to be successful and be admired, it should complete on schedule. The project needs a leader who takes the final decision with the consent of all members in his/her team. He/she should portray the courtesy to listen to subordinates even when the opinion is not being considered or implemented (Heldman, 2005). People who carry out the project should be taken into confidence and spoken to regularly. Most importantly, a project should have clarity about its scope, objectives, responsibilities, cost and accountability, scope for improvement should be considered and stockholders should be kept in confidence (PMBOK, 2004). The literature explains that the project management methodologies allow the project manager to allocate and make more work done with less people and time, so it would be beneficial to the SME where it have very fewer people working. And also its make the organisation more effective by implementing more project in lesser time by providing clear control on the projects scope and changes and implementing them more effectively and efficiently. Project management improves the line of decision making; it also increases the quality of a project. SMEs can handle more projects by raising its business (Kerzner, 2003). Definition Of Project And Its Success Factors: Project: A project is a series of activities or tasks that have a specific objective to be completed within a determined specification; have defined start and end dates; usually funded and require resources (Kerzner 2003; Cooke-Davies 2001). When the project is said to be failed it is waste of capital, time and resource, a new lessons /techniques/methodologies have to be learned from the failed projects and the project manager/ project authorities have to continue for the new project. Project management is one of the methodologies which deals the projects in a systematic manner and says the following are the essential factors to be made to complete successfully with a project: Clarity In Project Definition: Project manager has to make himself/herself with a clear idea and definition of the project, but not only he/she but also to his/her project team. He/she have to make sure about the project specifications such as â€Å"what the project is about† its aim, objectives, and its deliverables, etc. For example we can talk about the case studies of some unsuccessful projects due to indistinct objectives and aims which are documented by Gray and Larson (Gray and Larson, 2002). Thus the chances of increasing project success lies in clear and distinct objectives and aims. Project Feasibility: It is one among the factors which talks about the social, economical, political, human, cultural, financial and environmental factors which underpins to the achievement of the project (Fullen, 2005). According to Khatib this factors would produce a good result for a project which undergoes a serious study, specified aim and objective and allocation of time (Khatib, 2003). Consistent feasibility makes a project manager to define himself with a clear and well project aim, time specifications, and allocation of resources. A positive feasibility brings more chances to lead a project success. Planning: â€Å"According to Kerzner project planning; in general, can best be described as the function of selecting the enterprise objectives and establishing the policies, procedures, and programs necessary for achieving them. It can be described as a forecasting the environment and predefined course of action† (Kerzner, 2003 ). According to Kerzner, there are four basic reasons for project planning: Elimination or reduction of uncertainty. Improving the efficiency of the operation. Understanding a better understanding of the objectives. To provide a basis for monitoring and controlling work. (Adapted from Kerzner, 2003) Work Breakdown Structure (Wbs): The important task to be done by the project manger after project planning is dividing the work into manageable tasks. â€Å"The work breakdown structure is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team, to accomplish the project objectives and create the required deliverables† (PMBOK, 2004). The work breakdown structure also explains complete scope of the project. The WBS divides the work into small tasks which are manageable and will have a specific responsible authority will be allocated, it will be in a manner of integratable so that the total work package is the summation of subdivided elements, and it will be as much as easy to be measure in terms of progress like estimating cost, scheduling, monitoring, and controlling (Kerzner, 2003). Involvement Of Project Stakeholders: â€Å"Project stakeholders are the individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion. They may also exert influence over the projects objectives and outcomes† (PMBOK, 2004). Project stakeholders are also a part of the project success, to ensure this success the project team have to identify their requirements, expectations, and their influence on the project. Stakeholders may have various levels of authority/responsibility on the project; they may vary from occasional contributors to full sponsors for the project. â€Å"Stakeholder who ignores this responsibility can have a damaging impact on the project objectives. Likewise, project managers who ignore stakeholders can expect a damaging impact on project outcomes† (PMBOK, 2004). The above figure shows that every individual project is similar to the structure of the earth where in each sector plays an important role here the most interior structure is project manager who forms the base of any project. The project manager forms the integral part of a project management team along with whom he carry on the project. The project manager and the project management team together comprises of a project team where in this team wholly concentrate on the project that is to be taken. These three together works for the satisfaction of the stakeholders interested in the completion of the project it may comprises of the senior management of the company the owners and the clients of the company. Staffing The Project Manager And Project Team: As mention above to my literature the successful project includes; on time delivery, must come across stakeholders expectations, within budget and have to congregate the project deliverables (Cooke-Davies, 2004). Project manager is one who plays a vital role to mix all stuff to formulate the project to a success. â€Å"Project manager is the individual ultimately responsible for managing and leading the project to its successful conclusion† (Paul D, 2005). It is a role that entails a mix of competencies, combining management with leadership and political awareness (Pinto, 2000). Though understanding the role of project manager sounds good, but the upper management always find difficulties in the selection of a correct project manager. â€Å"Project management is said to be successful only if the project manager and his team are totally dedicated to the successful completion of the project. This requires the project team and project manager must have good understanding of the fundamental project requirements† (Kerzner, 2003). For this reason the upper management have to look up/focus at the following skills in the selection process from the individual to appoint him/her as a project manager: (this are requirements demanded by a SME in its advertisement for a facilities planning and development project manager (adapted from The New York Times, January 2, 1972) (source: Kerzner, 2003) Business Management Skills: If project management is itself an organization, as the whole project group will work as a solo unit for the achievement of a common goal, then the project manager is the CEO of this organization. So the organization skills are predominantly important during project development. With strong business management skills, he/she must be able to achieve the most excellent hysterics across teams and in the midst of all project resources of the organisation. â€Å"It requires defining the reporting relationship, responsibilities, line of control, and information needs. A good program plan and a task matrix are useful organisation tools plus clear defined program objectives, open communication channels, good program leadership, and senior management support† (Kerzner, 2003). Leadership Skills: Project manager is the one who has to manage his/her team and make them to follow him/her, has to act as a leader. He/she has to have a clear project leadership and own direction to direct the team members. He/she must be able to solve the conflicts, assistance in problem-solving, as a project leader he/she as to represent his/her team to upper level management. He/she as to motivate the project team members towards common vision. Project manager as a leader has to remain as a inspiration to his/her project team (Kerzner, 2003). Technical Skills: Technical skills is an superlative addition remark for a project manager, if his proficiency applicable to the project, by this he/she can have good thoughts and understanding about the projects and can work out more for his/her profound project objective (Horine 2005; Murch 2001). Now a day this skills achieved a greater importance, without technical skills a project manager cannot understand the present market, updated technology and the environment of the business. With the help of these technical skills one can understand the consequences or technical risks that encounter in the project, for example a software engineer being as a project manager and handling a software development project can easily sort the risks that appear in that project. He/she can make sure of his/her project team with a clear understanding of the foreseen risks that may appear in the project. â€Å"According to Kerzner, 2003 the technical expertise is composed of the following understanding: Technology involved Engineering tools and techniques employed Specified markets, their customers, and requirements Product application Technological trends and evolutions Relationship among supporting technologies People who are part of the technical community† (Source: Kerzner, 2003) Communication Skills: Another important skill set must be posed by the project manager is communication skills. â€Å"Project manager influence people o take action, this requires an ability to communicate in a style appropriate for the individual concerned† (Paul D, 2005). Project manager is the communication channel throughout the project. Project manager is effective means of communication hub between the project team and the end users. Project manager have to act as a communication radio and have to carry the stakeholders expectations towards the project team and have to bring the project to a successful effective end. Moreover, a successful project manager ensures smooth information sharing across teams via instilling a communication-driven environment that allows for efficient spread, user-friendliness and use of information. Conflict Resolution Skills: No project end up successfully without any conflicts, there might be foreseen risks or conflicts between the project team members or conflicts between project team and stakeholders. So this is the main reason that the project manager, the CEO of project management organization has to possess the problem solving skills/conflict resolution skills. Project success lies with how well the project manager solves the problems/conflicts. Soundness of the solution taken by the project manager with a logical and analytical thinking conforms how well the project manager good at reaching the project to a successful end. However these conflicts are beneficial to a project which indirectly increases the competiveness among the team members involved the project (Kerzner, 2003). Project Management Experience: Implementing successful project management lies in the hands of able project manager, so the project manager is responsible character and must possess prior project management experience in general. Project management is body of knowledge which can be learned from the realistic knowledge, but its not a skill which comes by itself. A well qualified project manager will be very much able to implement a successful project management into an organization. Past knowledge makes a manager to overcome all the challenges that he/she face in completing a project by using project management. Other Skills: There are so many other skills such as planning, resource allocation, management support building, and time management skills, etc, which make the project manager to lay his/her path successful in controlling the projects successfully. Not only this but also the entrepreneurial skills and administrative skills are very important in understanding the tactics and implement them in his/her own project and make the project victorious (Kerzner, 2003). A Critical Analysis Of Effective Risk Management Through Project Management Practices In Small And Medium Enterprises In India: Risk: Vose (2008, p. 3) defines the term risk as â€Å"a random event that may possibly occur and, if it did occur, would have a negative impact on the goals of the organization. Thus, a risk is composed of three elements: the scenario; its probability of occurrence; and the size of its impact if it did occur†. Any risk could prove an organisation wrong in its quest to achieve success. Risks can occur in various forms and their impact can vary under a lot of factors. In a high cost business environment that is under fierce competition from companies not just on a national, but also on a global level, the chances of risks arising multiply quickly and heavily (Crouhy et al., 2000). A firm can easily lose its name in the market because they had overlooked a miniscule drawback that their competitors overcame. Therefore, risks not only carry financial implications with them, but also other factors such as brand image, market credibility or loss of market share. To analyse and understand these implications, it is necessary to understand the types of risks and their varying characteristics (Flynn, 2008). Click and Duening (2004) have come up with a list of the various types of risks such as human capital risks, Confidentiality risks, overall project risks, and scope risks, delay risks, estimation risks and dependency risks may occur in the business. In addition to this there might be property (intellectual), legal, value related or unavoidable natural risks that generally exist and arise in a business. Types of risks: Human capital risks This has always been an important part of the business activity. People who work towards organizational goals are the most critical assets of the firm and the project (Beasley et al., 2004). A loss of an employee who was very important to the smooth functioning of a project can be a risky proposition because a new individual joining the project would need time to understand and evaluate a lot of factors contributing to the project. This would invariably lead to loss of productivity, a slump in team morale or even loss of time and money (Flynn, 2008). Project risks – These risks arise because of a lot of other risks contributing to the main risk of a project being delayed or even shelved in certain cases. There have also been instances where proper planning and regulation were absent or goals misunderstood leading to extended timeframes to complete the project thus leading to increased investments of critical resources (Sanchez Canton, 1998). A very good example of project risks can be seen in Government funded public projects or even military developmental projects where public time and money is involved. Confidentiality risk: The second most important risk that may appear in dealing a project is confidentiality risk, it mostly appear due to lack of secrecy. This is especially for the large projects. The information have to be kept confidential, if not the competitors with large team members may understand the work flow/formulae of the project and be able to built the project earlier as before you can. We must be careful especially when we involve contractors or outsiders into the project. Effective project management may help in having a good communication line among the team members, marketing staff, and contractors; this may helps to keep the information confidential (T Kendrick, 2009) Scope risks: This is another type of risk which mostly appears when the project starts to take a shape. This is due to requirement of a new technology, unfamiliar developments of tools or methods, poor testing criteria, inconsistent specification, undefined product definition, and technical complication (T Kendrick, 2009) Delay risks: Delay risk is part of schedule risks and these are after scope risks, these risks mainly appear due to the delay of the essential parts required for a project, it include customs, Paperwork, delivery, and related concerns. This is also due to the delay of information needed, communication gap and misunderstanding among the team members/ project stakeholders, etc. Due this factor the project may delay for some days, months or may be for years (T Kendrick, 2009) Estimating risks: Estimating risk appears mostly in technical projects. Project manager mostly says the typical risks arise in the project is estimating risks. Estimating risks occurs when there are learning curves ( when the quality of estimates of new technology, or new people involvement is not good), judgements (misunderstanding, disintegration of work), and imposed deadlines (forceful deadlines set in advance, when an objective is retained) (T Kendrick, 2009) Dependency risks: Other projects, infrastructure factors, and legal issues are three sub categories of dependency risks. In general large project are sub divided into small projects and mostly these small project will be dependent on the other, unfortunately when one small project is delayed/stopped the other projects which are dependent on it will be delayed. â€Å"Even for the interfaces that were defined in advance, delay was fairly common due to the uncertainty in each project† (T Kendrick, 2009) The above section has detailed the different types of risks that normally exist or co-exist in projects. Their modes of occurrence and the impact they can have on the project and the firm has been explained in brief. The following part would attempt to explain ways that firms, projects and managers involved employ to analyse and manage the same since the occurrence of a risk can pose a threat to the above in terms of time, money or even failure to deliver what has been promised. Analyzing And Managing Risks: Ways to manage risks with limited impact on other resources: Risks are present in abundance in any IT and outsourcing industries because of the processes being tightly interlinked such as business processes, database, or process reengineering. Therefore, it is very important to: Identify risks. Weigh risks for probability of risk occurring. Weigh risks for criticality/impact at your operations. Plan to reduce risk (to zero if appropriate, for example for a safety critical industry) (Sanchez Canton, 1998). A simple way of explaining risk analysis is to take an airplane for example because the traveler, who is the user, has zero tolerance to risks. In similar manner, risk analysis can be carried out for other products and services too. The most important indicative risks are business continuity management risks, information security/data privacy risks and process related risks (Lock, 2001). The need to evaluate and monitor risks involved from an Enterprise Risk Management (ERM) perspective takes higher priority over other means of analysis in the information age of business (Flynn, 2008). It can be seen in the ERM diagram below the different risks across the entire organization that exist or arise and the need for them to be managed effectively (Beasley et al., 2004). An important reason firms should stress on analysing risks is the realization that risks delay chances of sticking to time schedules agreed by project leaders to customers in turn; leading to increased investment of resources in the form of man hours and time (PMBOK, 2004). This causes increase in investment of capital, which is something neither customers nor firms involved like to do. Risks occur at every stage of a project thus increasing stress on carrying out risk analysis and minimize the effects of risks on a given project. It means that risks and errors still occur when thorough analyses of their occurrence have been chalked out and steps have been implemented to minimize the effects they have on a project (Burke, 1999). However, prior knowledge of a risk occurring at a given period in the project enables people involved to counter the risk effectively and minimize or erase the impact it could have had on the project. Before the project could be initiated, assessing risks by knowing in exact what the project intends to do and the reason for it to be outsourced becomes very important. This could include assessing project behaviour under varying market conditions and the expected growth rate it can attain within a given period of time (Dickson, 2003). Risks need to be analyzed in a detailed manner by the top management in order to understand the various options available to conduct a cost-benefit analysis. This understanding and analysis becomes significant in implementing a sound risk management plan. A project taken up poses as a risk in itself to explore opportunities that lie waiting on the other side. Therefore, threats need to be minimized a

Analysis of Cadburys Essay -- Business Management Companies Essays

Analysis of Cadbury's Background to business The Cadbury’s company started manufacturing chocolate in Birmingham in 1824. It was set up by Mr. John Cadbury. In the year 1847 the company changed when John and his brother Benjamin became partners and the company became known as the Cadbury Brothers of Birmingham. A year later the retail side of the business, which was allocated in Bull Street was passed to nephew, Richard Cadbury Barrow. In February 1854 the company received their first Royal warrant as ‘manufacturers of cocoa and chocolate to Queen Victoria. The company still holds the royal warrants of appointment. In 1861 both Richard and George Cadbury took over the business when their father retired. The Cadbury brothers were dissatisfied with the quality of cocoa products that were being produced by manufacturers including their own, for this reason the brothers wished to improve the quality of Cadbury cocoa products as to help the business to survive and prosper. The brother visited to the Van Houten Factory in Holland, after the visited the Cadbury brothers, started using a new processing technique. The Cadbury brothers introduced this new process for pressing cocoa butter from cocoa beans, the process made a more palatable cocoa essence. The company remained in Birmingham for 32 years and by then the factory had become too small for the worker force. The brothers decided that they had to move the factory to larger premises. The source of the quote below is cadburys.co.uk site. "Why should an industrial area be squalid and depressing?" Both brothers asked. "Why should not the industrial worker enjoy country air and occupations without being separated from his work?" "If the country is a good place to live in, why not to work in?" In 1878 the company was move to Bournville. After the death of Richard Cadbury in 1899, the Cadbury business became a private limited company: Cadbury Brothers Limited. George Cadbury became the Chairman of the Company’s new Board. The other directors were Barrow and William A. Cadbury (sons of Richard) and George’s own two sons, Edward and George Cadbury Junior. The Bournville factory site became a 'series of factories within a factory', as everything needed for the business was produced on site, with tin box pressing plants, carton making units, a design studio and pri... ...ain quality to their chocolate. PRICE Cadburys price their products competitively with their competitors. Cadburys products can be found in most local corner shops, Cadburys chocolates are price at the same price as their competitor: Example; Cadbury whole nut would cost 35 pence, while a Mars bar and Galaxy bar could also cost 35 pence. PLACE Cadbury sells anywhere where there is a demand for their products, special if there many customers that want to buy their products. Cadbury would sell their products to shops (business) that deals with beverages and confectionery like (Iceland, Sainsbury, Kwick Save, Tesco, Asda, Safeway) and also in post offices and newsagents and in vending machines. PROMOTION Through Cadburys promotional activities it can be clearly seen that they have been guided by their promotional and marketing objectives of "maximising profit† and also â€Å"to increase the sales†. Achievement of these objectives enables the business to meet the business objectives of being â€Å"Number one product in a given market†. Cadburys Company are the number one seller of chocolate confectionary product on the market, in the Europe and world-wide. Analysis of Cadbury's Essay -- Business Management Companies Essays Analysis of Cadbury's Background to business The Cadbury’s company started manufacturing chocolate in Birmingham in 1824. It was set up by Mr. John Cadbury. In the year 1847 the company changed when John and his brother Benjamin became partners and the company became known as the Cadbury Brothers of Birmingham. A year later the retail side of the business, which was allocated in Bull Street was passed to nephew, Richard Cadbury Barrow. In February 1854 the company received their first Royal warrant as ‘manufacturers of cocoa and chocolate to Queen Victoria. The company still holds the royal warrants of appointment. In 1861 both Richard and George Cadbury took over the business when their father retired. The Cadbury brothers were dissatisfied with the quality of cocoa products that were being produced by manufacturers including their own, for this reason the brothers wished to improve the quality of Cadbury cocoa products as to help the business to survive and prosper. The brother visited to the Van Houten Factory in Holland, after the visited the Cadbury brothers, started using a new processing technique. The Cadbury brothers introduced this new process for pressing cocoa butter from cocoa beans, the process made a more palatable cocoa essence. The company remained in Birmingham for 32 years and by then the factory had become too small for the worker force. The brothers decided that they had to move the factory to larger premises. The source of the quote below is cadburys.co.uk site. "Why should an industrial area be squalid and depressing?" Both brothers asked. "Why should not the industrial worker enjoy country air and occupations without being separated from his work?" "If the country is a good place to live in, why not to work in?" In 1878 the company was move to Bournville. After the death of Richard Cadbury in 1899, the Cadbury business became a private limited company: Cadbury Brothers Limited. George Cadbury became the Chairman of the Company’s new Board. The other directors were Barrow and William A. Cadbury (sons of Richard) and George’s own two sons, Edward and George Cadbury Junior. The Bournville factory site became a 'series of factories within a factory', as everything needed for the business was produced on site, with tin box pressing plants, carton making units, a design studio and pri... ...ain quality to their chocolate. PRICE Cadburys price their products competitively with their competitors. Cadburys products can be found in most local corner shops, Cadburys chocolates are price at the same price as their competitor: Example; Cadbury whole nut would cost 35 pence, while a Mars bar and Galaxy bar could also cost 35 pence. PLACE Cadbury sells anywhere where there is a demand for their products, special if there many customers that want to buy their products. Cadbury would sell their products to shops (business) that deals with beverages and confectionery like (Iceland, Sainsbury, Kwick Save, Tesco, Asda, Safeway) and also in post offices and newsagents and in vending machines. PROMOTION Through Cadburys promotional activities it can be clearly seen that they have been guided by their promotional and marketing objectives of "maximising profit† and also â€Å"to increase the sales†. Achievement of these objectives enables the business to meet the business objectives of being â€Å"Number one product in a given market†. Cadburys Company are the number one seller of chocolate confectionary product on the market, in the Europe and world-wide.

Financing SME Essay

The definition of Small & Medium scale Enterprises (SMEs) varies from country to country. The classification can be based on the firm’s assets, number of employees, or annual turnover along with the loan amount. Central Bank of Sri Lanka defines SMEs as enterprises with less than Rs. 600 million turnover per annum and with a maximum exposure of Rs. 200 million mainly to be classified as a SME for Basel II Capital adequacy calculation and utilization of funds accumulated in the Investment Fund Account in Banks. Whatever the definition, and regardless of the size of the economy, the growth of SMEs throughout the region is crucial to growth of respective economies. Because, SMEs play a critical and important role in providing job opportunities, enhancing the quality of human resources, maximizing the use of local resources, saving foreign exchange, nurturing a culture of entrepreneurship, fostering creativity and opening up new business opportunities etc. Most corporate organizations in Sri Lanka or elsewhere are the establishments started as SMEs in its early stages. Classic examples from our own country may be Nawaloka Group, Access International, Softlogic Group of companies. In most literature, it is mentioned that access to financing has been recognized as a major impediment for many SMEs and its growth, whereas corporate business entities have the advantage over the SMEs in doing so primarily as a result of their formalization. However, according to Juliet Mckee and Kimball Dietrich (2003), most common problems for SMEs are the lack of access to market information and technology, the low quality of human resources and the lack of access to capital. Despite efforts by financial institutions and public-sector bodies to close funding gaps, SMEs continue to experience difficulty in obtaining risk capital. These funding gaps relate to firm size, risk, knowledge, and flexibility. The development literature focus a good deal of attention on issues faced by SMEs in accessing finance. Traditionally, the focus is on obstacles created by financial institutions, mainly by commercial banks or on imperfections in the broader institutional environment. However, SMEs also make decisions about financing and display attitudes that have an important bearing on financing decisions. Therefore, constraints may also appear on the â€Å"demand side† of the financing market. Objective of this article is to discuss the key challenges and issues for bankers pertaining to SME lending, of which, part of them are inherent in SMEs and for others bankers are responsible. 1. Issues of SMEs 1. 1 Lack of financial literacy or weak financial literacy In the literature, lack of financial literacy is designated as informational asymmetries where SMEs typically posses privileged information on their business that cannot be easily accessed or cannot be accessed at all by lenders or outsiders. Reasons for this may vary and also have different perspectives. SMEs are mainly driven by entrepreneurs who have nurtured in their own ways to prospective SMEs. As a result of hard ways of development, they either had no time to devote further education or do not believe in learning. This is evident from the credit applications that are submitted to banks for financing. This eventually leads to low levels of financial literacy among entrepreneurs. Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resource. Though many SME owners are sound in developing business models and working out the profitability of products and services, understanding about the macro picture of the SME’s overall financial standing in terms of profit and loss account, balance sheet and cash flows is week. As a result, they sometimes opt to resort to outsiders or merely depend on themselves in preparation of financial information which may or may not reflect the actual picture of the SMEs. Because of this impediment, banks have no choice, but to depend on collateral for SME financing. At the backdrop cash flow lending is encouraged, financial institutions are struggling to project the SMEs’ sustainable bankability. This is recognized as the main obstacle for banks and financial institutions in financing SMEs. One of the options to counter this impediment is the concept of â€Å"Para accountant†. A Para accountant is an external consultant who uses finance, economics, risk management and technology skills to help organizations prepare and report financial and tax statements according to accounting principles and regulatory requirements. A Para accountant also may review a firm’s internal controls, processes and procedures to ensure that such controls are adequate. A Para accountant may work on a client’s site or remotely. They are not necessarily qualified accountants, however, might be an option. Bankers’ prime objective in this endeavor is to develop reliable sources of information so that they could project the sustainable cash flows of the business. With this objective banks could train their credit appraisal officers as Para Accountants, who will interacts with prospective SMEs and develop a set of financial information while strengthening the banking relationship over a period of time. 1. 2 Entrepreneurs’ knowledge about building a prospective banking relationship A banking relationship is about much more than just selecting a bank to handle a company’s bank accounts. If the relationship is managed well, it can help a company to thrive. SMEs that use more than one bank will need to manage multiple banking relationships. A company will first have a business account (or several) at a retail bank (or banks) for all day-to-day financial transactions. Whether it is retail, SME or corporate, the banks should have a team of business banking advisers on hand, to advise and guide a company. It’s important to ensure continuity— banks usually offer a contact with a designated person and in turn expect to deal with the same person or persons from the company. A good banking relationship depends not only on personal rapport, but also by having a solid understanding of the company and its financial needs. Over time, a banking adviser should build up a good understanding of the company’s preferred ways of doing business and incorporate that into how their banking requirements are handled. There are many advantages having a sound banking relationship for SMEs. The bank is more likely to offer loans and other lines of credit, potentially at preferential rates of interest, if the bank advisers feel there is a good relationship with the company. The bank’s advice can be tailored for the company’s needs and personal style, rather than given generically. In times of crisis, a company having its bank’s support will be crucial. Even if a company is a text-book case of insolvency, strong personal rapport with a company representative means that the bank is more likely to offer leeway if it knows that directors are doing their utmost to keep the company going. Failure to develop a strong relationship, however, means that the SME is likely to miss out on good advice and, crucially, support in times of difficulty. However, unfortunately, many SMEs are not on the right track to understand the importance of having a good banking relationship. Given that no sound financial information are available, at least, SMEs should try to maintain a healthy customer relationship with the financial institution to entice financial needs, especially in difficult periods. It is both Bankers’ and SMEs’ responsibility of developing a prospective banking relationship over a period of time without compromising risk capital. More than the credit facilities, credit plus would be reasonably appropriate to start such a relationship and then move into advanced levels of relationships along with credit facilities. 1. 3 Financial discipline of entrepreneurs As Henry Ford correctly cited, â€Å"Wealth does not come accidently. You have to plan for it. † One’s discipline explains the right behavior and ability to take decisions without emotions. Hence, financial discipline is all about right financial decisions. In order to be financially discipline one should understand concepts of accounting and financial management in SME business. Accounting in general is all about record keeping and developing summary financial reports. Most commonly available financial reports or information are the profit and loss account, balance sheet and the cash flow statement. Unless SMEs keep records of their daily activities, it is difficult to develop financial statements with regard to their businesses. With no financial statements, SMEs will always struggle in making financial decisions. More often, there is no clear distinction between the business finance and the finances of the proprietor. Therefore, it is critical that the lender examines carefully borrower’s all commitments, i. e. , those related directly to the business and those associated with the proprietor’s private life and assets. Lack of Business Planning is a result of weak financial indiscipline in SMEs where investment decisions, working capital decisions, even pricing decisions are based on the entrepreneurs’ values than on facts. The lack of proper financial discipline results in incorrect business decisions, which hampers the sustainability of the SMEs. MacRobert (2002), in his SME manual explains why SME borrowers are different to commercial and corporate borrowers. One of the common reasons is unskilled/ untrained principals. Many SME principals in the Asia-Pacific region are self-starters, often with limited formal education, and minimal training in business management skills. That is not to say that they are incompetent, but that they often lack the capacity to research information on ways to strengthen their businesses, and, indeed, to be aware that such resources even exists. Role of the bankers in this regard is to educate the importance of financial discipline through strong banking relationships. Bankers are one of the key sources, to get SMEs to believe in financial discipline. Bank officers should take the initiatives in this endeavor to educate the SME owners. Role of the Government is also a key imperative in developing required conducive environment through institutional and policy frameworks. Some universities in Sri Lanka have already started dedicated departments to teach courses related entrepreneurship. (Example: University of Sri Jayewardenepura and University of Colombo) and It is important to note that Business studies is part of the GCE A/L curriculum. Recent budget proposals in 2011, 2012 and 2013 has given enough support to encourage SMEs and SME financing and one of the very useful proposals was to direct government banks to set up dedicated SME Branches not only to facilitate SMEs with easy access to finance, but also to educate SME owners and to guide and direct them to right places and people. However, strengthening the institutional framework to develop business development support services is also an imperative. 2. Issues with Banks SMEs are not only critical to the economy, but also to the banks’ profitability. Most diversified banks maintain a substantial percentage of exposure to the SMEs as a strategic investment given the diversity within the SME portfolio itself. It is always profitable, but need to properly evaluate and closely monitor the delinquencies to avoid any credit risks. It is a perception as well as a fact sometimes, that SMEs are always highly risky as explained by many banks. It may be due to several factors including, non availability of financial information, no tax returns, no collateral, one man show, highly sensitive to economic conditions, no proper organizational structure, and many more. These are reasons given to avoid or very conservative underwriting of SME credit proposals. As a result of these reasons, credit policies of financial institutions are based on stringent credit guidelines. 2. Institutional framework with hindering process issues In the case of many developing countries, the above mentioned obstacles to SME financing are exacerbated by institutional and process factors. Most developing countries are still highly concentrated and have uncompetitive banking sectors. This reinforces the tendency to adopt conservative lending policies. Credit policies which mainly cover the credit risk and market risk, endorse a processes which covers many elements to secure exposure, while satisfying the regulator’s requirements. This eventually results in a value driven Credit culture in financial institutions. According to MacDonald and Timothy (2006), management’s credit policy determines how much risk the bank will take and in what form. A bank’s credit culture refers to the fundamental principles that drive lending activity and how management analyzes risk. There can be large differences in their lending philosophy. The three potentially different credit cultures are: values driven, current profit driven, and market share driven. The institutional framework is reflected through the credit policy in this part of the world, the tendency is to inculcate a value driven credit culture, which has the following attributes: Focus is on credit quality with strong risk management systems and controls Primary emphasis is on bank’s soundness and stability and a consistent market presence Underwriting is conservative and significant loan concentrations are not allowed. Typical outcome is lower current profits from loans with fewer loan losses It is evident with lower non- performing ratios prevailing in banks justifies that credit risk is covered with loan risk mitigation factors and discourage granting venture capital to SMEs. Eventually, SMEs need to resort to acceptable securities which hinders them from easy access to finance from financial institutions. 2. 2 Collateral syndrome (Risk avert) Strong value driven credit cultures in financial institutions always tighten the belts in covering credit risk. Unless the financial institutions develop competencies in cash flow based lending, credit officers have no choice but to cover themselves with collateral in risky SME lending. Competencies itself will not drive the business unless the risky lending is rewarded with challenging business targets. Security based lending propositions are gradually becoming unhealthy for economies as it discourages strategically important investment decisions. Government of Sri Lanka recently enacted legislations to ease the pressure on SMEs through amendment of Parate execution where normal civil procedure of debt recovery should be applied for loans below Rs. five million with security of property mortgages. 2. 3 Weak competency in building cash flow based lending propositions Strong value based credit policies encourage security oriented lending and creates knowledge gaps in credit officers. Security oriented lending does not require strict cash flow projections and credit evaluations. Developing cash flow projections is an art and requires overall knowledge about the industry, technology, external factors (external climate) and specific firms (internal climate) along with econometrics modeling to analyze the cash flows. When it comes to large projects, knowledge in project appraisals and risk analysis will help the credit officers to get exposed to project financing. At the backdrop of investor confidence and developing businesses in emerging economies, venturing into risky business propositions is in the agenda of the banking and financial intuitions. Financing SMEs are risky but at the same time profitable, so indeed banks need to develop how best they could mitigate the risk of these ventures. One of the options is to gradually develop a culture of SME financing with confidence through development of competencies in their credit officers. Competency development not only addresses econometric techniques of analyzing and evaluating the credit proposals, but also industry knowledge and exposure, experiences of sick industries and business units, world politics and world economics, knowledge in emerging markets and technologies, behaviors and issues of labor, understanding the entrepreneurship etc. Conclusion Many of the literature examine the issues of financing SMEs world over. However, there are key issues not only from the SMEs point of view, but also from the financial institutions and, government’s point of views. No one can expect the SMEs to nurture in best practices all by themselves. In this regard, the role of financial intuitions is greater, when it comes to inculcate and nurture SMEs in the right directions. The issues for SME financing discussed above are the keys, but there are many others which needs further discussions.

Guide and Examples for Writing a Sociology Abstract

Guide and Examples for Writing a Sociology Abstract If you are a student learning sociology, chances are you will be asked to write an abstract. Sometimes, your teacher or professor may ask you to write an abstract at the beginning of the research process to help you organize your ideas for the research. Other times, the organizers of a conference or editors of an academic journal or book will ask you to write one to serve as a summary of research you have completed and that you intend to share. Lets review exactly what an abstract is and the five steps you need to follow in order to write one. Definition Within sociology, as with other sciences, an abstract is a brief and concise description of a research project that is typically in the range of 200 to 300 words. Sometimes you may be asked to write an abstract at the beginning of a research project and other times, you will be asked to do so after the research is completed. In any case, the abstract serves, in effect, as a sales pitch for your research. Its goal is to pique the interest of the reader such that he or she continues to read the research report that follows the abstract or decides to attend a research presentation you will give about the research. For this reason, an abstract should be written in clear and descriptive language and should avoid the use of acronyms and jargon. Types Depending on at what stage in the research process you write your abstract, it will fall into one of two categories: descriptive or informative. Those written before the research is completed will be descriptive in nature. Descriptive abstracts provide an overview of the purpose, goals, and proposed methods of your study, but do not include discussion of the results or conclusions you might draw from them. Informative abstracts are super-condensed versions of a research paper that provide an overview of the motivations for the research, problem(s) it addresses, approach and methods, the results of the research, and your conclusions and implications of the research. Preparing to Write Before you write an  abstract there are a few important steps you should complete. First, if you are writing an informative abstract, you should write the full research report. It may be tempting to start by writing the abstract because it is short, but in reality, you cant write it until you the report is complete because the abstract should be a condensed version of it. If youve yet to write the report, you probably have not yet completed analyzing your data or thinking through the conclusions and implications. You cant write a research abstract until youve done these things. Another important consideration is the length of the abstract. Whether you are submitting it for publication, to a conference, or to a teacher or professor for a class, you will have been given guidance on how many words the abstract can be. Know your word limit in advance and stick to it. Finally, consider the audience for your abstract. In most cases, people you have never met will read your abstract. Some of them may not have the same expertise in sociology that you have, so its important that you write your abstract in clear language and without jargon. Remember that your abstract is, in effect, a sales pitch for your research, and you want it to make people want to learn more. Step-by-Step Guide Motivation. Begin your abstract by describing what motivated you to conduct the research. Ask yourself what made you pick this topic. Is there a particular social trend or  phenomenon that sparked your interest in doing the project? Was there a gap in existing research that you sought to fill by conducting your own? Was there something, in particular, you set out to prove? Consider these questions and begin your abstract by briefly stating, in one or two sentences, the answers to them.Problem. Next, describe the problem or question to which your research seeks to provide an answer or better understanding. Be specific and explain if this is a general problem or a specific one affecting only certain regions or sections of the population. You should finish describing the problem by stating your hypothesis, or what you expect to find after conducting your research.Approach and methods. Following your description of the problem, you must next explain how your research approaches it, in terms of theoretical framing or general perspective, and which research methods you will use to do the research. Remember, this should be brief, jargon-free, and concise. Results. Next, describe in one or two sentences the results of your research. If you completed a complex research project that led to several results that you discuss in the report, highlight only the most significant or noteworthy in the abstract. You should state whether or not you were able to answer your research questions, and if surprising results were found too. If, as in some cases, your results did not adequately answer your question(s), you should report that as well.Conclusions. Finish your abstract by briefly stating what conclusions you draw from the results and what implications they might hold. Consider whether there are implications for the practices and policies of organizations and/or government bodies that are connected to your research, and whether your results suggest that further research should be done, and why. You should also point out whether the results of your research are generally and/or broadly applicable or whether they are descriptive in nature and fo cused on a particular case or limited population. Example Lets take as an example the abstract that serves as the teaser for a journal article by sociologist Dr. David Pedulla. The article in question, published in American Sociological Review,  is a report on how taking a job below ones skill level or doing part-time work can hurt a persons future career prospects in their chosen field or profession.  The abstract is annotated with bolded numbers that show the steps in the process outlined above. 1. Millions of workers are employed in positions that deviate from the full-time, standard employment relationship or work in jobs that are mismatched with their skills, education, or experience. 2. Yet, little is known about how employers evaluate workers who have experienced these employment arrangements, limiting our knowledge about how part-time work, temporary agency employment, and skills underutilization affect workers labor market opportunities. 3. Drawing on original field and survey experiment data, I examine three questions: (1) What are the consequences of having a nonstandard or mismatched employment history for workers labor market opportunities? (2) Are the effects of nonstandard or mismatched employment histories different for men and women? and (3) What are the mechanisms linking nonstandard or mismatched employment histories to labor market outcomes? 4. The field experiment shows that skills underutilization is as scarring for workers as a year of unemployment, but that there are limited penalties for workers with histories of temporary agency employment. Additionally, although men are penalized for part-time employment histories, women face no penalty for part-time work. The survey experiment reveals that employers perceptions of workers competence and commitment mediate these effects. 5. These findings shed light on the consequences of changing employment relations for the distribution of labor market opportunities in the new economy. Its really that simple.