Saturday, August 17, 2019
Determination of Factors Contributing to Success Essay
These factors will be uncovered by nalyzing the internal and external factors influencing strategic alliances and the phases through which these alliances evolve. In order to provide this research study with a practical element two case studies within the airline industry have been incorporated, namely the Swissair Qualiflyer Alliance and Star Alliance. These case studies represent a successful and an unsuccessful alliance, which are analyzed on a basis of the provided literature study, in this case the phases through which these evaluation of the case studies numerous supportive results were identified, ontributing toward establishing determinant factors, which emphasize the importance of a successful implementation of the different phases, however limitations affect the reliability of this study, due to the lack of evidence found in various different phases. Keywords: strategic alliances, internal and external factors, strategic alliance phases Introduction In past years a visible increase in the amount of strategic alliances, concerning firms with varying economic objectives, was observed (Das, Teng 2000). Strategic alliances are the ââ¬Å"relatively enduring inter-firm cooperative arrangements, involving flows and inkages that utilize resources and/or governance structures from autonomous organizations, for the Joint accomplishment of individual goals linked to the corporate mission of each sponsoring firmâ⬠(Parkhe 1991, p. ). The amount of strategic alliances has recently doubled, predicting additional raise in the future (Booz, Allen, Hamilton 1997). Especially alliances in the form of non-equity based, which are defined as two or more firms developing a contractual-relationship in order to establish competitive advantage by combining resources and capabilities (Globerman 007), have increased in importance which is visible in non equity alliances accounting for 80 per cent (Hagedoorn 1996). Strategic alliances provide firms with the opportunity to recognize synergies through combining operations, such as in research and development, manufacturing etc (Aaker 1995; Addler 1966). The growth of strategic alliances is related to growing competition and globalization (Das, Teng 2000). This is in alignment with Doz and Hamels (1998) view which states that globalization as well as changes in economic activities is a consequence for the growth in strategic alliances, which is visible in various different industries Hagedoorn 1993). The primary reasons for the growth of the number of alliances is 1) the ability of cost savings in executing operations 2) the ability to access particular markets 3) the reducing of financial and political risk in addition to cheapest labor and production costs (Wheelen, Hungar 2000). A strategic alliance by definition is a hybrid organizational form which Jensen and Meckling (1991) refer to as a network organization. Harbison and Pekar (1998) highlight numerous common characteristics visible within strategic alliances, namely a required commitment of at least ten years, he connection of the partners is based on equity or on shared capabilities, a complementary relationship based on a shared strategy, increasing companiesââ¬â¢ value in the market place, the pressuring of competitors and the willingness of sharing and leveraging core capabilities. Nevertheless, strategic alliances have noticeable high instability rates (Das, Teng 2000); furthermore, according to Kalmbach and Roussel (1999) the failure rates are approximately as high as 70 per cent. Studies conducted by Das and Teng (2000) reportedly state that encountered problems are witnessed in he first two years of two thirds of all alliances. This study is going to provide a more in-depth analysis on the factors that are necessary for determining success in all strategic alliances. Starting with an analysis of strategic alliances based on the as to which extent these factors play a crucial role in the determination of success rate of strategic alliances. In order to incorporate a practical view on the strategic alliances, this study will additionally implement two case studies to the analysis. Conceptual Model [pic] This conceptual model starts the literature study on strategic alliances as a central concept. From this central concept, emphasis is drawn on internal and external factors influencing strategic alliances, as well as on the different phases through which alliance evolve. Additionally, strategic alliances lead to either successful or unsuccessful alliances. Based on the research from Bronder and Pritzl (1992), Hoffmann and Schlosser (2001), Waddock (1989) and Wolhstetter, Smith and Malloy (2005), a framework of seven phases is established. Within these seven phases the most important activities and processes are analyzed, including reasoning behind strategic alliances, potential intensions for forming strategic alliances, partner election, external factors influencing the design of the strategic alliance, negotiation methods, followed by the structuring of the alliance. Furthermore, implementation and management of the strategic alliance is examined. Finally, the last two phases concerning the evaluation of the formation of strategic alliances and the termination of the partnership are discussed. Resulting from this literature study are two outcomes, namely a successful implementation of the phases and an unsuccessful implementation. In order to apply a practical element to this thesis, two case studies ill be analyzed, those of Qualiflyer, which turned out to be an unsuccessful alliance and Star Alliance, which was able to incorporate a success strategic alliance in the airline industry. After analyzing the cases the findings compared to the literature analysis, will hopefully correlate to each other and the determinants that influence more success in alliances can be established. Problem Statement Based on past literature research studys the outcomes of implementing strategic alliances as a change strategy in organizations is unfavorable, especially when looking at the failure rates. Nevertheless, the adoption of strategic alliances is a customary implemented firm strategy (Gulati 1998), as a means of securing their competitive position. Much research is conducted in order to provide more guidance in determining factors that achieve sustainable strategic alliances, therefore in this thesis the main research question is; What factors determine the success of strategic alliances? This research question will be addressed by the help of analyzing and answering these various sub-questions; Why do firms choose strategic alliances as a change process? What are the potential ntentions of a strategic alliance? activities and processes occur in which phase? Preview of the organization of the thesis This report begins by indicating the problem that strategic alliances are a favorable organizational change strategy in the business world today, however the failure rate is extremely high. Secondly, by applying literature analysis the main determinants influencing more success in strategic alliances will be uncovered, which will be coupled to the case study part of the thesis where the determinants will be compared to the specific cases. Finally, the thesis will conclude on the part if the eterminants uncovered in the literature study correlate to the findings in the case study. Methodology and Research Design In this thesis the methodology contained two specific approaches, including a literature study as well as evaluating two case studies. Firstly, the literature analysis was conducted; with as primary focus an in-depth analysis of academic articles. The findings of the literature study are compared to two case studies, those of the Qualiflyer alliance and Star Alliance. These two cases were chosen because they represent the different outcomes an alliance can hold, namely the successful mplementation the alliance strategy at Star Alliance and the unsuccessful outcome of an alliance strategy of the Qualiflyer alliance. In addition, even though these two examples vary substantially in size, which provides difficulty when comparing the two alliances, they both started off at reasonably the same size; therefore this thesis incorporated these two examples anyway. This evaluation will be conducted by means of desk research, exploring the different implementations of this strategy. The time frame of the case studies is from the first phase up until the last phase, through hich they evolved, in order to identify dependent unsuccessful and successful aspects. The significance of implementing case studies in this thesis is relating the findings from the literature analysis to real life cases of both a successful alliances as well as a non-successful alliance. Furthermore, comparing if the determinants of success found in the literature analysis correlate with the factors observed in the cases. Internal versus External factors Influencing Strategic Alliances Our internal tensions perspective framework (Figure 2, Appendices) of strategic alliances comprises three airs of competing forces-namely, cooperation versus competition, rigidity versus flexibility, and short-term versus long-term orientations (Das, Teng 2000). Competition is defined as pursuing oneââ¬â¢s own interest at the expense of others, while cooperation is the pursuit of mutual interests and common benefits in alliances. This tension of cooperation versus competition is most salient in selecting alliance partners, the first of three major stages in the alliance making process, along with structuring and managing an alliance (Das, Teng 1997). In conclusion, the stability and success of trategic alliances will be inversely related to the difference between the cooperation level and the competition level. Rigidity refers to the characteristics of mutual to adapt, unencumbered by rigid arrangements. The dominance of either flexibility or rigidity may change the status quo and trigger the evolution of a new structure, which leads to unsuccessful alliances. Therefore, the stability of strategic alliances will be inversely related to the difference between the rigidity level and the flexibility level. Short-term orientation views strategic alliances as transitional in nature, with a emand for quick and tangible results, whereas long-term orientation regards alliances as at least semi permanent entities, so that more patience and commitment are exercised. A strategy that reflects only one temporal orientation is not compatible with the foundation for a sustainable strategic alliance, in other words the stability of strategic alliances will be inversely related to the difference between the short-term orientation and the long-term orientation. Furthermore, the three internal pairs of contradictory forces are interrelated within an evolving system, resulting in the ollowing propositions, namely that the levels of rigidity and cooperation will be positively related when the partners have a short-term orientation in strategic alliances. However, a negative relatedness at a high level of rigidity, cooperation and rigidity (Das, Teng 2000). will be negatively related when the partners have a long- term orientation in strategic alliances (Das, Teng 2000). According to Das and Teng (2000) the contradictions and tensions in these force-pairs may lead to an overthrow of the status quo namely, the strategic alliance. Strategic alliances can nevertheless e sustained and successful if a careful balance between these competing forces can be maintained. According to Todeva and Knoke (2005) external factors influence alliance formation, due to differing economic condition and organizational frameworks in partnering countries; these can include legal requirements, price controls, distribution channels and contract enforcement. Furthermore, these regulative state activities comprehend the freedom when firms are forming alliances. Moreover, the formation of an alliance necessitates the authorization of national governments. Additionally, of influence to the formation of alliances is the omplicated collection of relations visible with firms, such as business associations, local governments and elite universities. On an industrial note alliances are influenced on an interflrm basis by direct impacts, where the decision on which activities to internalize is based on severity of competition within the industry and the organization of ad hoc product markets, in the challenge for increased market share, the cooperation for specific advantages and the process of internationalization (Todeva, Knoke 2005) . The partner under consideration for the formation of an alliance is in a certain sense an external factor. Firms are susceptible in the case of partnering with a dominant firm (Pennings 1994), due to technical and economic rationales. Thus, technology is a specific part of the process to establishing organizational boundaries as well as intrinsic structures. Of importance to alliances is obtaining research and development advantages, which to certain extent differs across industries on terms of expenses and the sources provided by the government (Todeva, Knoke 2005). Every alliance design commences with negotiations, thereafter the phase of structuring the alliance in which various aspects are aligned, such as he objectives of both parties, organizational structures, functional operations and cultures (Ring, van de Ven 1994). The distinguishing of phases through which strategic alliances evolve plays an essential role in the development toward successful alliances, which according to Bronder and Pritzl (1992) evolves through the three stages, which are categorized as strategic decision, confguration of strategic alliance and partner selection. Where Bronder and Pritzl terminate their research on the establishment of phases other researchers continue in identifying essential phases, for the reason that partner election as final phase represents an incomplete evolution of strategic alliances. With regard to the research conducted by Hoffmann and Schlosser (2001), the identification of strategic alliance phases resulted in a five phase path through which strategic alliances evolve, namely strategic analysis and decision to cooperate, search for a partner, designing the partnership, implementation and management of the partnership and finally termination. When comparing both Bronder and Pritzls (1992) and Hoffman and Schlossers (2001) phases, a comparison is visible in the primary hases of strategic alliances, namely the strategic analysis and decision to cooperate (Hoffmann, Schlosser 2001) which corresponds with the strategic decision phase from Bronder and Pritzl (1992). Furthermore, the partner selection phase is visible in both frameworks on strategic alliance phase. The main difference between the two studies is the more detailed approach from Hoffmann and Schlosser (2001) also distinguishing phases after the partner selection process. Finally, a study building on Waddocks (1989) work, which suggests that strategic alliances progress through hree phases, which are identified as initiation, establishment and maturity, Wohlstetter, Smith and Malloy (2005) consistently debated that the strategic alliances process is organized into three similar phases namely initiation, operations and evaluation. When comparing these views with the earlier stated reasoning on strategic alliance phases merely a fguration is enabled as to which phases from Bronder and Pritzl (1992) and Hoffmann and Schlosser (2001) are in comparison with Wohlstetters et al (2005) view and could be placed within their views, for example the artner selection phase distinguished the above stated views is probably placed within the initiation phase identified by Wohlstetter et al. (2005). In order to provide this thesis with an in-depth view on the phases through which strategic alliances evolve a combination of the three above stated views is implemented. Phase 1: Strategic Decision According to Bronder and Pritzl (1992) a clarification of the firmsââ¬â¢ position is to be analyzed, refer ably because this is identified as the first direction toward alliance formation. Pumpin (1987), states that the evaluation of the actual situation of the firm s identified by exploring its mission, possible values and core competencies. Additionally, the firm identifies the reasoning behind incorporating an alliance strategy. According to Eisenhardt and Schoonhoven (1996), Harrigan (1985), Link and Bauer (1989), Pisano (1991) and Teece (1992) technological change faced by firms is related to the favorability toward flexible organizational forms like alliances. Additionally, Ciborra (1991) and Oster (1992) state that high-tech industries, in which learning and flexibility are key characteristics, will preferably choose alliances, lexibility, firms favorably adopt a merger and acquisition strategy. The flexibility of strategic alliances is suitable as organizational structure due to the fast expiring of new knowledge and the lengthy learning time from partners (Eisenhardt, Schoonhoven, 1996; Hagedoorn 1993). Furthermore, these flexible organizational structures appear more effectively in uncertain environmental situations when adjusting to changes (Lawrence, Lorsch 1967; Pffeffer, Salancik 1978). In continuation of Powells (1996) view, Hagedoorn and Duysters (2002) predict that strategic alliance xperience positively contribute to choosing alliances as instrument for obtaining external innovative capabilities. This view is aligned with that of Kogut et al. (1992) and Gulati (1993) who accentuate the relationship between actual alliance formation and past alliances, however emphasize on a more social basis. Therefore, the formation of strategic alliances is dependent on both strategic as well as social factors. According to Eisenhardt and Schoonhoven (1996), an extension of the resource-based view provides a basis for examining the relationship through which alliances form by means of strategic and social resources. This research study contributed numerous outcomes on strategic alliances to existing literature, namely that increasingly challenging market conditions and Jeopardous organizational strategies result into an increase of alliance formations as an organizational change process. Additionally, of importance to the rate of formation of alliances are managerial characteristics, visible when large, experienced teams were implemented through previous employers, the rates of alliances increased (Eisenhardt, Schoonhoven 1996). In conclusion of their research Eisenhardt and Schoonhoven 1996) state that in cases of either a vulnerable strategic situations or a strong social situation the likelihood of the formation of strategic alliances increase. Phase 2: Initiation Phase The initiation phase is characterized by informal structures and communication channels as the critical issue is the development and understanding of the purpose for strategic alliances (Waddock 1989). According to Hitt et al. 1997), the potential intentions to be realized behind entering into strategic alliances are categorized into three market types 1) namely markets characterized by slow cycle, which adopt trategic alliances for original intentions such as the gaining of access to restricted markets, establishing franchises in a new market and maintaining market stability 2) in markets characterized by a standard cycle amongst the intentions able to be achieved are the gaining of market power and access to complementary resources, over coming trade barriers, gaining knowledge and learning about new business techniques 3) in the final market, the fast cycle, the achievable goals are the speeding up of the entry of new products and services in addition to new markets, maintaining he market leadership position, sharing the risky Research and Development expenses and overcoming uncertainty. Furthermore, several internal conditions drive the initiation phase including, a champion taking responsibility, complementary needs and assets, compatible goals and trust. According to Waddock (1989), the main responsibility of the champion is the guidance of the organization through the initiation phase, especially visible in the process of partner selection. Stated in the initiation phase is essential for identifying needs in addition to the process of partner selection. Complementary needs and assets appear in various different forms, however is one of the main reasons for partnering (Oliver 1990; Robertson 1998). Additionally, the main goal of partnering is achieving compatible goals among the partners, which might not have been achieved otherwise (Austin 2000; Das, Teng 1998; Kanter 1994; Oliver 1990; Robertson 1998; Spillett 1999). Finally, the initiation phase stands no chance without trust, which is mainly established through existing networks (Austin, 2000; Waddock 1989; Waide 1999), within these networks similar interests are the main characteristic. Phase 3: Partner Selection The purpose behind strategic alliance partnering is to initiate and prolong a long- term partnership, which enables more effective competition with others firms which are positioned outside the partnership Carillo 1988; Walker, Poppo 1991). The crucial decision toward the correct partner selection is the primary focus after pursuing this alliance strategy (Hitt, Tyler, Hardee, Park 1995). According to Koot (1988) the selecting of a partner is a complex process however crucial to the success of an alliance. In the partner selection process perspectives of both resource-based and organizational earning provide an explanation as to why certain partners are selected (Barkema, Bell, Pennings 1996). In explanation, firms own certain resource endowments (Barney 1991) however, in order to obtain a competitive position in a specific market supplementary resources are necessary (Hitt, Nixon, Clifford, Coyne 1999), which is the main objective for engaging in strategic alliances. Hitt et al. (2000) argues that of importance to the partner selection process is the firmsââ¬â¢ embeddedness in both emerging markets and developed markets. Furthermore, the access to necessary esources for leveraging as well as the obtaining of capabilities for learning are primary reasons for the selection of partners. Table 1 in the Appendices, state the concluding outcomes on the selection of partners by Hitt et al. (2000), which explains the fundamental elements of the process toward partner selection. Eisenhardt and Schoonhoven (1996) and Dacin and Oliversââ¬â¢ (1997) view state that legitimacy enhancements are an additional intention for establishing alliances, therefore the partner selection process is focused on those providing strong intangible assets, for example strong reputations. According to Bronder and Pritzl (1992) critical to the partner selection process is the establishment of fundamental, strategic and cultural fit. This fundamental fit is achieved if a win-win situation for both parties is established and potential value is increased. The strategic fit is realized when the alliance involves partners with harmony of the business plans. Finally, the cultural fit is an essential success factor for partner selection, which is accomplished after acceptance of cultural differences among the partners. Phase 4: Designing the Partnership Niederkofler (1991) argues that the negotiation process must essentially interpret learly understandable resources and interests of the partners involved, in order for the creation of strategic and organizational fit to be achieved, which will direct the accomplished through open and detailed communication, circumventing hidden agendas of any sort. The consequence of this open communication translates into a coherent attitude of sincerity toward the different partners, which demands trust. In addition to strategic fit, the negotiation process also initiates a solid basis for the enforcement of an operational fit within the partnership, which can be viewed in Figure 1 of the Appendices. An important aspect of the negotiation process is the creation of flexibility, which is increased through contract provisions in addition to developing and prolonging of trust. The process of conquering complexity in operations embarks with the communication of the discovered complexity, followed by a tracking and solving of this difficulty, which results in the avoidance of any operational unalignments. The flexibility within the partnering arrangement, in addition to trust, permits renegotiation processes within the partnership; however a coherent basis must be accomplished (Niederkofler 1991). The success of alliances is highly dependent on a competent and effective alignment, therefore of importance is the designing of the partnership, thus the structure implemented. This structure is in need of a fine constructed collection of strategy, procedures and management views, which can be viewed as the internal alignment (Miles, Snow 1994). In the process of obtaining internal alignment interests as well as environmental aspects must be balanced between the partners, enabling a profitable situation (Douma, Bilderbeek, Idenburg, Looise 2000). Additionally, their framework, Figure 3, Appendices, stress the act that the five features must sufficiently be aligned to prevent failure. One of the features, namely strategic fit, is established when expected advantages and possible risks are weighed against that of the individual interests in the alliance. Various driver of strategic fit can be identified, starting with a shared vision. Further conditions necessary for strategic fit are compatibility of strategies (Brouthers, Brouthers, Wilkinson 1993), strategic importance (Doz 1988), acceptance into the market and mutual dependency. In addition to strategic fit, organizational fit is a ecessity, however due to the differences in many aspects, such as market position, organizational structure and views, management style, this is a complex task. By clarifying these differences an understanding between partners is achieved. Numerous drivers toward organizational fit are identified, namely as stated above the addressing of organizational differences (Doz 1988) furthermore, essential drivers are facilitating strategic and organizational flexibility, minimal complexity to enhance manageability (Killing 1988), efficient management control, enhancing long-term tability by investigating possible strategic conflicts and finally, the achievement of the strategic objective. Of influence, however to lesser extent are the three remaining features in the framework, which are human, operational and cultural fit. Human fit is particularly of importance in alliances processes (Boersma 1999) and according to Lewis (1990) the cultural fit is specifically an issue among employers and employees, which translates to their functioning in for example boardrooms. Finally, operational fit, also relates to the functioning of the alliance and is often susceptible to various ontingencies, therefore must be aligned. Research and Development activities have gradually evolved since the 1980s (Peterson, 1991). Creamer (1976) and Pearce (1989) identified three primary types of Research and Development activities, namely basic purpose is an understanding of the inherent and fundamental scientific development, however disregarding commercial applications. Furthermore, applied research employs knowledge conceived from the basic research to certain dimensions such as technical problems or related commercial technology aspects. In conclusion, basic research generates new facts and theories which are thereafter roven through applied research. These proven facts are generated into products and processes in the development stadium. The intention of development activities is the configuration of applied research contributions into commercially feasible products, processes and technologies Oansen 1995; Jones, Davis 2000). Phase 5: Implementation and Management of the Partnership The role of the management of strategic alliances is valuable for the progression of the alliance toward a successful outcome, however it is complex to manage (Koza, Lewin 2000). An important aspect in serving this complexity is the acquiring of nowledge from past engaging in alliances, which provides meaningful know-how to be leveraged (Kale, Dyer, Singh 2001). The framework of the four Cââ¬â¢s of learning and leveraging alliance know how provides a tool for obtaining valuable knowledge. The four components in the framework are, capture, codify, communicate and create, and coach (Kale, Dyer, Singh 2001), also visible in Figure 4, Appendices. Capture refers to managementsââ¬â¢ role of accessing and obtaining of valuable alliance insights and past experiences. To codify past experiences and practices contributes to the accomplishing of alliance specific needs. In order to have a common thread through the organization on these past knowledge practices, communication is essential in sharing experiences. Additionally, the creation of networks within the alliance facilitates the distribution of these valuable experiences and knowledge. Intrinsically executed coaching and education programs increase the ability to obtain alliance skills. An additional benefit from coaching is the establishment of informal social networks, which provides assistance in key situations. Furthermore, networks are critical to the development of opportunities, the assessing of concepts and obtaining esources in order to construct the new partnership (Aldrich, Zimmer 1986). The incorporation of social networks within a firm improves communication between partners, which in turn results in improved decision making processes (Gulati 1993). Various intentions for the implementation of networks can be identified, one specific is the preserving of advantages (Lorenzoni, Baden- Fuller 1995). According to Madhaven, Koka and Prescott (1998) the initiation of inter-organizational networks is created by exogenous factors, which could include competition background and specific industrial activities. Building on this theory, Gulati et al. (1997) argues that the initiation of these inter-organizational networks is dependent on two aspects, namely exogenous resource dependencies, which achieve motivation of the cooperation and an ââ¬Å"endogenous embeddednessâ⬠dynamic, which in turn familiarizes toward partner selection. According to Stinchcombe (1990), in flows of network information meaningful views are discovered,
Poverty in the Philippines Essay
Divorce in the Philippines is planning to take over Filipino values and culture. Itââ¬â¢s all over the news, the Philippine Congress is now pushing forward the Divorce Bill right after they have put forward the Reproductive Health Bill. This is exactly what I have been worrying about. Just a couple of weeks ago, when I attended our Baptist Convention Meeting here in the Visayas, this issue was brought up. And just as what I have stated, ââ¬Å"RH Bill can also lead to the Divorce Billâ⬠because they have the same proponents. I know lots of Evangelical Christians are pro-RH Bill. But what they donââ¬â¢t know is that the proponents of RH Bill are also the proponents of Divorce Bill. And now that they almost got what they want, they are now preparing for another wave of controversial bill which will open a highway for immorality and degradation of Philippine culture and religious standards and beliefs. Here is a list of the known supporters of RH Bill and Divorce. It is not what God wants. Since I started Biblical studies nothing in the Bible that will tell you that God favored and felt better for divorce. It was only allowed due to the hardheadedness of men. God did not made man and woman to be united and then separated if they got into some problems. If you fear the Lord and his commands, there is no way that you will agree on divorce. This is not what God wants. As simple as it is. Even if some pastor and theologians quantify it as a ââ¬Å"necessary amputationâ⬠as far as I remember what my American Theology professor said, I would say that divorce is divorce, and God hates it. It was only men who wants it, not God. It is not the answer to the growing violence against women and children. Most divorce advocates gives emphasis on the growing children and women abuse. But I really do not see it as a solution for these problems. In fact it extends to the growing problem of immorality and sexually related diseases and problems such as unwanted pregnancies and sexually related diseases. And I believe that you will agree with me that these problems are a threat to women, children and even family. But why? Simply because people were given the so-called choice and chance to change while the fact is, it is where the so-called ââ¬Å"rightsâ⬠is abused. It is where many people make use of the right and abuse it for their own self-centered selfish quest for happiness and will only bring them to the same situation again and again and again. Thatââ¬â¢s why you will see people divorced not just once, nor twice, but multiple times. It gives a wider path to domestic problems. As I mentioned earlier this right has proven to be easily abused. And we are not actually giving people a solution to their problems, but a chance to repeat the same mistakes. Divorce is like a medicineâ⬠¦ but an unrecommended one. For example, there is a an abusive husband who have been divorced by his wife. This husband will then just look for another woman to abuse. While the woman if sheââ¬â¢s the one having some problems, she will just look for another guy and if things will not get well, all she has to do is to apply again for divorce. Ridiculous isnââ¬â¢t it? It is just a picture. It gives a wider path for immorality and marital infidelity. Immorality. I guess this is not so much ââ¬Å"inâ⬠nowadays. Itââ¬â¢s something that most people donââ¬â¢t want to talk about except those that are of the religious sectors and religious people. I hate to say this but the Philippines have a steep moral degradation and that is why most of these divorce proponents put forward for various problems. Did we not learn from the US? Did the stats of violence against women and children dropped by the use of divorce law? We talk much about the positive things that we can get from the divorce law, while the negative effects far out weighs the positive. Hereââ¬â¢s the summary of the advantages of divorce:
Friday, August 16, 2019
Econet Wireless International and the African Telecommunications Industry Essay
Activities to be completed in this presentation: Carry out a SWOT analysis for Econet Wireless International, identifying the key issues that Econet needs to address from the results of your analysis. Undertake an industry analysis of the African Telecommunications market using Porterââ¬â¢s Five Force Model. Using a competitor analysis framework of your choice, analyse the Big Five mobile operators in the African market Econet Wireless International is facing or faced challenges in a number of markets it entered. Identify these challenges and the sources of these challenges. What Marketing strategy options should Econet use at it tries to grow its operations (Justify your options) and what should it do to successfully implement these strategies? Introduction The selection of a growth strategy is ultimately determined by the companyââ¬â¢s strategic goals, core competencies and strategic assets as well as by its target customers, collaborators and the overall economic, technological, socio cultural, regulatory and physical context. An integrative approach of analysing these factors is essential for the development of a successful growth strategy. Overview Econet Wireless International (hereafter to be referred to as EWI) is a Zimbabwean ââ¬âowned international telecommunications group. The result of Dr. Strive Masiyiwaââ¬â¢s vision, Econet began in mobile telephone service in July 1998, after years of legal battles. Thus it began leading the change in the telecommunications terrain. Zimbabwe has issued only 3 mobileà telecommunication licenses to EWI, Orascom-owned Telecel and the government-owned NetOne. SWOT Analysis for Econet Wireless International As a result of the internal and external analysis, our SWOT analysis is as follows: Strengths Growth through international expansion. As EWI expands onto 3 continents in 10 countries, they are able to develop global footprint, thus increasing their capital base and securing their company. Innovative product range. They continuously developed product range, they developed into becoming a full-service communications company offering mobile telephony, traditional landline telephony, Internet services, data streaming services, transactions systems and contract services for other operators. For example, in Zimbabwe alone, they have a number of viable product offerings, namely Buddie, Ecocash, EcoFarmer, EcocashSave, Econet Solar, Econet Broadband and BusinessPartna Contract Lines. Their business model enabled them to offer quality products at competitive prices. They collaborated in the form of consortium partnerships and also joint ventures. For example, it was able to penetrate markets such as Nigeria, Kenya, Botswana, New Zealand, Lesotho, Malawi and Burundi. Their joint venture was with Altech in South Africa. The benefit of this partnership firm was listed in the Johannesburg Stock Exchange thus exposing them to a new source of capital. Their mutually formed company, Newco, would have eventually taken over almost all of Econetââ¬â¢s companys, allowing EWI to backward intergrate with a supplier which in terms of future growth, would enable them to develop an even wider product offering. This alliance would have been mutually beneficial, with Econet getting access to technology products, finance and administrative structures while Altech would get the opportunity to diversify riding on EWIââ¬â¢s mobile network. Multi-branding. EWI used itââ¬â¢s name in countries where it had a controlling stake such as in Nigeria, Lesotho, New Zealand, Malawi and Burundi. In countries where it was the minority shareholder, it operated under different names, namely Mascom ( Botswana), Gulfsat Maghreb SA ( Morocco). Their management structure was such that in each country, the operation was headed by a national, who knew the business climate in that country but the financial aspect was headed by an expatriate from headà office thus maintaining effective control and providing support. This encouraged business relations in those nations as the national heading the operation was able to negotiate deals from a knowledgeable point. Weaknesses Limited capital for operations, thus curtailing their growth, especially in New Zealand and Nigeria as the case study says, the consortium partners resisted a higher stake in Econet, believing they did not have the financial means and/ or resources to invest. In addition, Econet did not have enough money to finance the upgrading of its network and it came under government threat of having its licence revoked, thus they had to borrow $75 million Export-Import Bank. Also, in Kenya, their license was cancelled due to failure by the consortium to fully honour the license fee obligations within the given time frame. They failed to provide a service recovery alternative for the suspended Buddie cards in 2002 in Nigeria. The implication here was that they created low switching costs for their subscriber base, boosting the sales of their competitor. Econet gave their competitors an edge over them in Nigeria, as evidenced by the outcome of their decisions to suspend Buddie cards and also, during their subsequent reintroduction. Both times, MTN gained from these moves. In reintroducing the cards, they were not able to support the resulting call volumes. They had not had the foresight to prepare for this possibility as a result of their reintroduction. Network quality problems resulting from failure to support capacity when the Buddie lines were reintroduced. It was a situation of demand outstripping supply. They had also not expected this outcome as a result of reintroducing the previously popular lines. Itââ¬â¢s strong dependance on their Zimbabwean operations means they weakened their efforts at expansion due to the unfavourable economic climate. They had raised capital via the Zimbabwe Stock Market but could not use it externally due to stringent government controls on the basis of hard currency remittance limitations. Their failure to capitalise on the license in New Zealand meant a loss on their part. Opportunities Their listing on the Zimbabwe Stock Exchange gave them the opportunity to raise more capital. Acquisition of licenses in various countries through consortium partnerships meant they gained a foothold in countries such asà Nigeria, Kenya, Botswana, Morocco, New Zealand, Lesotho, Malawi and Burundi though from a minority position in the consortium. They were able to obtain licenses in various countries. Threats Stringent government controls. Restrictions to remit itââ¬â¢s foreign currencies to finance itââ¬â¢s operations in other countries, e.g. in New Zealand Intense competition, e.g. in New Zealand where the market was duopoly delaying their entry into that market. Low switching costs. In most of their markets, subscribers are multi-networked. As subscribers used a number of networks to maximise on particular network availability and promotions, EWI could not in depend totally on that these subscribers would be faithful. Key Issues Limited capital for operations. They could list on the Stock Exchange to attract investors. They could offer rights issues to existing shareholders, thereby attracting new capital. Network challenges. They need to upgrade their systems. They need to ensure they have enough technological infrastructure, e.g. base stations, to be able to cater for network loads. Collaboration with suppliers. Government regulations and restrictions. They need to form relationships with the host governments. Decision making. Improve their decision approach at corporate level, e.g. their decision to limit the number of days subscribers had access to the network. From the above analysis, the following threats are of high importance and Econet would do well to take notice: Stringent government controls Intense competition Low switching costs Mergers and acquisitions present an attractive and profitable opportunity thus Econet should explore this avenue further. Industry analysis of the ââ¬Å"Big Fiveâ⬠using Porterââ¬â¢s Five Forces model. Threat of new entrants ââ¬â High because: There are strong barriers to entry in terms of obtaining an operational license due to government restrictions, e.g. Zimbabwe, as shown in the case when Masiyiwa argued the case that the Telecel consortium should beà disqualified as they did not meet tender specifications. Restrictive license fees in terms of costs of getting the license such as in Kenya when EWI had their license cancelled after only two months due to failure to meet their obligation in terms of the license fee. A lot of capital is needed to start the business. It is estimated that $14 billion on average is needed as investment in the mobile phone business. Bargaining power of buyers: High because: Low switching costs such as in Nigeria when Econet opted to suspend the sale of its prepaid Buddie cards for 6 months due to quality problems, resulting in them losing subscribers. The buyerââ¬â¢s power is strong in Burundi because they have a population of 7 million people with only 4 mobile subscribers. Bargaining power of suppliers ââ¬â High because: The government controlled operator supplier, Nitel, had strong bargaining power, as evidenced by their holding back to supply Econet with transmission links for more than a year and Econet had no option but to wait. There were few suppliers. Industry rivals ââ¬â High because: Customer base grew rapidly between year 2000 and 2005 Intense competition among players in the mobile industry. Substitutes ââ¬â Low because: Landlines penetration rates were low, for example, in Chad, the rate was on average one landline per 70 people while the mobile phone users expanded between year 2000 and 2005 from 15.6 million to 135 million. The overall rating is high because rivalry is high, threat of new entrants is high, bargaining power of suppliers is high and bargaining power of buyers is high. Competitor Analysis Competitor Key Strengths Key Weaknesses Perceived Strategies Key Segments Millicom First-mover position Market leader status Cost leadership Multi-branded Wide market coverage within South America Less aggressive business approach Easy to attack Low revenues in the big five Mass-marketing Multi-branding Cost leadership Low population markets International markets MTC Innovator High capital base Strong market coverage Market strength through acquisition An aggressive player High rate of economic growth Narrow product range Multi-branding Full market segmentation High population areas MTN Market coverage Market leader Strong capital base Economies of scale Resource utilisation Wide product range No multi-branding Blue ocean Leveraging existing business Growing new markets through acquisitions Research and development High population areas Niche, e.g. Middle Eastern Orascom Strong capital base through conglomeration Multi branding Cost leadership Wide product range Market leader Multi-branding Removed operations in Africa Market development High population Vodacom Strong revenue base Market leader Adequate resources for expansion Investment opportunities Least internationalised Market growth limitations Taking unnecessary risks Joint venture franchising Forward integration Domestic International Table 2 Company Capital/ Revenue (in billions $) Market Coverage (number of countries) Mobile Subscriber Number (in millions) Millicom 1.4 16 13 MTC 3 20 23 MTN 3 21 32 Orascom 2.1 9 41 Vodacom 3 5 27 From the analysis above, the market leaders are MTC, MTN and Orascom in terms of revenue. Millicom and Vodacom take the role of market challengers. In looking at mobile subscriber, Orascom and MTN are the market leaders followed by Vodacom, MTC and Millicom respectively. In terms of market coverage, MTN leads followed by MTC. Millicom is the market challenger. Orascom and Vodacom are nichers as they focus on specific markets. Challenges Legislation Government controls in the form of price controls, barring establishment of private mobile networks Trading policies License to operate Government regulations ââ¬â licensing board Intense competition Duopoly in New Zealand Infrastructure problem Network support Lack of foreign currency Government foreign currency regulations in Zimbabwe Changes in exchange rate Economical meltdown in Zimbabwe Lack of capital Delay in listing on stock exchange Poor quality Buddie cards in Nigeria Product development and testing was poor Marketing Strategy Options Ansoff Matrix Market penetration ââ¬â The organisation tries to grow itââ¬â¢s market share through sales of existing products to the present market, for example Econet Zimbabwe trying to grow its market share from 70% to 80%. They could achieve this through promotions such as offering discounted tariffs. This can be done through ensuring that they have got enough capital to support the reduction of cost on pricing. The company needs to develop budgets to steer ample resources towards promotion and advertising. Product Development ââ¬â Coming up with new or modified products, for example Ecocash has been modified to include an account, that is, EcocashSave. They need to invest in a Research and Development department, tasked to come up with more innovative products. They also to need to emphasize on Total Quality Management to avoid product recalls, for example, in Nigeria where the cards had quality problems. Market development ââ¬â The company seeks for and finds new markets in which to expand, for example they go into a totally new market such as penetrating Canada. They can do this through acquisition of licensing in that country.à Before acquiring the license, they would need carry out market research to ensure that that market is attractive and can be profitable for them. They should also ensure that they have enough capital to successfully implement this marketing strategy. In addition, they need to have the right management and organisational structures. Blue ocean The process of identifying an untapped market in an effort to run away from competition. For example, Econet came up with Econet Solar where they tapped into the solar provision market in an effort to ensure that their customersââ¬â¢ phonesââ¬â¢ battery life did not affect their network accessibility. In these topsy-survy times where clients have become complicated, the only way to survive in business is through eliminating competition through investing in new technology and/ or Research and Development. As a result, they can realise much in terms of profit. We advise Econet to take the Ansoff matrix strategies because it covers the wide scope of marketing strates or options of growth.
Thursday, August 15, 2019
Personal Statement: Who Am I?
Olivia in the dictionary, and you might find; noun, a female given name. From the Latin word olive. But this name doesn't define me. I could also tell you all the things I do; school, yearbook, HOSE President & Treasurer, but those don't define me either. I ask myself simple questions to find out who I really Am I the leader of a crowd, or a background follower? Do I direct groups or do I get directed? Am I the thinker or do I let others think for me? Am I part of the in- rood, or am I an outsider looking in?Who truly am l? To find the answer I look deep inside myself and discovered the truth. I am a uniquely defined Individual. I don't go to parties every weekend nor do I consider myself as weak minded. I am simply neutral in the world. I have friends of both sides of the spectrum and I feel free to talk to whomever I want regardless of what others around me think. I am bossy, and I personally hate people telling me what to do, I am a natural fighter. I fight for what I think Is rig ht, some may call me obelisks, but I keep the respect between adults and myself.The activities I listed above Just show that I am a hardworking-dedicated individual who doesn't quit at the first sign of trouble. I don't let the teacher who constantly looses my homework get me down; I Just work extra hard and redo all the work required of me. I am simply Olivia, and no one can take that away. People may tear me down emotionally but mentally I am stronger than anyone can Imagine. I am the girl defined by no one but her own standards, standards that continue to grow thicker every day.
Wednesday, August 14, 2019
Military Leadership
The American Revolution comprised mainly of land based forces in the form of army battalions. Because of the early creations of ammunition, the armies are the only available units in the war. Since this conflict primarily involved the intention of independence, it was a very brute event for the commanders of both sides. Christian men are the most proliferated individuals in this war. Interestingly, the American Revolution had a great influence on liberal thought throughout Europe (American Revolution, 2006). On the other hand, the American civil war was a major war between the forces of the same constituents of a nation. However, because of the relative differences in ideology, the war became inevitable and eventually came into reality. The military people in the American civil war may be perceived to have a balanced approach towards victory. Because of the relative smaller scope, the commanding forces of the army may have been somehow reluctant to fight their own citizen domains. They were very prone to social trauma considering that they live in the same national domain with just a little misunderstanding of idealism approaches. It would have been very hard for the army to fight for both sides since they belong to a single line of citizenship. The most explicit factor in the procedure of this war was the collaboration of slaves and the fighting units until the end of the event. Emancipated slaves fought in several key battles in the last two years of the war (wikipedia, 2007). The military personnel still has the concentration of American males with religious affiliations of Christian origin. This made the war very traumatic for both parties. On the event of the Indian wars, the army still had the opportunity to disclose its might. Although naval and air forces are not very significant during this period war, the relative intensity on the part of the army still focused on the aproach to dislodge what native americans were fighting for. The concentration of Native American and English lineages was the main component of the war. Men were still the most active participants in the war while some females of both social parties were engaged in post war operations. The relative differences in racial characteristics of both sides was the aggravating factor that lead to various levels of fight setbacks. The armies of both sides were willing to win against each other. As with the whole population of the American army, most Americans viewed the Indians as incorrigible and non-reformable savages. Those closest to the warring factions or who were threaten by it, naturally wanted government protection at any cost (Davis, 1999). For World War I, the overall capacity of the army, the navy and the availability of the air force, has dramatically changed the way war is staged. For the army, it was during this time that the physical participation of units is reduced because of advanced weapons and guns. For the navy, a greater scope of challenges was encountered due the international scope of the war. The naval forces played a great role in weakening the offenses of the enemy before letting the army proceed with the fight. On the other hand, the air force became a significant penetration unit to dislocate the stable forces of the enemy nation by targeting its internal strengths. Men are still the main forces in these three force units. However, women participation was very visible in the form of service units. Health care and rehabilitation are the main tasks for women involved in World War I. The religious affiliations were significant factors in this war because of the global scope of the conflict. References: American Revolution. 2006. Complete History-Aftermath. American Revolution. Retrieved May 21, 2007 from http://www.americanrevolution.com/. Davis, S. 1999. Buffalo Soldiers and Indian Wars. Buffalosoldiers. Retrieved May 21, 2007 from http://www.buffalosoldier.net/. Wikipedia. 2007. American Civi War. Retrieved May 21, 2007 from http://en.wikipedia.org/wiki/American_Civil_War#Military_factors. Ã
Tuesday, August 13, 2019
Critical Thinking Essay Example | Topics and Well Written Essays - 500 words - 12
Critical Thinking - Essay Example It is a normal attitude that human beings have towards different kinds of people and hence the ways in which beggars or a young girl would be observed are different. While psychologically the authorââ¬â¢s comments may seem to be right, logically they do not fit the idea since if an individualââ¬â¢s psychological mind-set allows him to pre-judge a person wrongly, it is nonetheless wrong. This fact has not been discussed in the passage. The author tries to focus on the point that a drunk beggar would be generally more dangerous than a sober teenager girl, in terms of any harm that they might do to others. Negative pre-judgment would actually help people to be careful in this regard. The author has remained consistent in his views but his arguments do not reveal his confidence on the issue, which is complicated in the sense that judging people without knowing much about them can be either right or wrong, and this factor cannot be analysed from before. The author has also mentioned that he cannot answer this point perfectly. Hence as the author says negative pre-judgments are not always wrong, is a statement that has no valid logic to support it. Brandon Bean has considered in his note a very important issue which is experienced by almost all individuals at some point or another. People have a general tendency to pre-judge others, before knowing much in details about the individual. But it is generally believed that al such pre-judgments are bad or negative. Bean has focused his thinking on the fact that this is not true in all cases, stating two main factors. Firstly, that all pre-judgments are not negative, and secondly that, it is not always wrong to have negative pre-judgments. While the author has tried to deliver an argument to focus that negative pre-judgment is not always wrong, rationally this cannot be supported considering that such negative pre-judgment can affect the
Monday, August 12, 2019
Assignment on Project management Essay Example | Topics and Well Written Essays - 1250 words
Assignment on Project management - Essay Example At the same time production and sales team should try to reduce production, marketing and sales cost. In order to reduce Cost, Company can try for new techniques for marketing as well as sales, but while doing so customer reaction to these changes should not be ignored. If any changes are done without analyzing market reaction it may result in crisis. ââ¬Å"Gourmet Direct is a web-based New Zealand company delivering high quality gourmet products to the food industry and the public. The company experienced a crisis of customer confidence and loss of business when it attempted to rationalize its product lines by changing from a pick and mix ordering system to having only a set number of packs available for sale. This change was designed to achieve cost savings through a reduced inventory and reduced distribution expenses, but had a further consequence of reducing product availability and ordering flexibility for customers. Customers immediately expressed their displeasure, and the companyââ¬â¢s sales plunged dramatically in the year that the decision was implemented. With the bulk of the companys sales usually occurring over the Christmas period, December sales almost halved. The following first quarter sales dropped an alarming 76% compared to the same period in the previous yearâ⬠In this case company changed its sales policies from a pick and mix ordering system to having only a set number of packs available for sale in order to reduce inventory and distribution expenses, But due to this changes customers found less options for selection and faced lack of availability of product. This was the actual reason for customer dislikes and they stopped buying, which finally resulted in reduced sales on company side. Clearly this is mistake from companyââ¬â¢s side. Company should not have implemented changes suddenly all over market at the same time.
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