An Exploration on How Climatic Alteration Has Affected the Economy of the United States
The impact of climatic alteration varies considerably across the US due to the size of the nation, economies, different topographies, and ecosystems. The implications of the climatic alteration will likely put immense strains on public financial plans more especially the cost of maintaining road and rail networks and increasing replacements. Depending on the climatic alteration, economic losses translate into lost tax revenues, and federal officials have raised taxes in the United States to help sustain safety and sufficient provision of goods and services.
One of the most noteworthy impacts of climatic alterations in the US may be related to water supply (Inslee, 2016). The continued economic, as well as population growth, has exacerbated existing and future stresses placed on supplies. Substantially, the nature of climatic alterations all over the nation make the net effects of worldwide warming on the agricultural sectors doubtful. Financial impacts on the agricultural sector vary by region particularly areas where precipitation levels are likely to remain stable. Ideally, warmer temperatures result in augmented threats of severe drought by increasing the pace of evaporation.
This dissertation explores how climatic alteration has affected the economy of the United States and the impacts caused include water scarcity, wildfires, energy, and infrastructure stress, flooding, and Hurricane intensity. Moreover, the rise in sea levels, temperatures, the occurrence of extreme precipitation conditions alternated with periods of elongated droughts will also be the centerpiece of discussions in this context.
The study presents projections of climatic effects on the US, by means of information obtained from existing data and modeling exercises that fall into one of the two quantification designs. Policy makers are pursuing clarifications to help in avoiding the worst implications of climatic alteration while transitioning the country to a green energy compliance system. On the other hand, the U.S global change study program lately released a wide-ranging report describing some of the major impacts of climatic alteration.
Climatic Alteration Economics
Dissertation Objectives
To identify the economic effects of climatic alteration that occurs all over the country
To classify the economic impacts and how they are strewn across regions and within the economic landscape and society
To determine the adverse climatic alterations and the most affected sectors that supply crucial goods and services to society
To determine how Climatic alteration impacts will place vast strains on public sector budgets and how their occurrence dictates EPA’s priorities and financial situations.
Dissertation Contents
1 – Introduction
Background information on the Study
Problem statement of the study
Purpose of the Study
Dissertation objectives
Study questions and statement of hypothesis
Statement of hypothesis
Significance of the Study
Limitation of the study
2 – Review of the Literature
Introduction to literature review
Review of the principles and concepts
Climatic theories
Anthropogenic worldwide warming theory (AGW)
The Bio-thermostat theory
Cloud formation and Albedo theory
Human-related forcing besides greenhouse gases
Planetary oscillation theory
Solar Variability
Economic theories
Adam Smith and the invisible hand of capitalists
Karl Marx and the exploitation theory
The Keynesian concept of government intervention in the economy
Review of the empirical literature
Summary of the literature and the emerging issues
3 – Study Methodology
Introduction to study design and methodology
Areas of study
Study design
Targeted climatic zones
Targeted economic zones
sample areas of concern and sampling mechanisms
Data collection methods
Data collection procedure
Framework for data analysis and presentation
4 – General Overview
Scope of the results
Data analysis criteria
Findings/results
Statewide Findings
Overall economic findings
Alternative representation of data
5 – Results Interpretation, Recommendations and Conclusions
Interpretations of the results
Recommendations
Conclusions
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Investment appraisal is normally undertaken by a company before committing to any form of high-level capital spending. The appraisal has two main features including the assessment of the level of returns expected that could be earned from the investment made and an estimate of the future benefits and costs in the span of the project (Ross et al. 2010). In this regard, long-term forecasting is important for estimates of future benefits and costs especially in the purchase of the non-current asset. There are several techniques for investment appraisal, but the two most basic include the payback and return on capital employed (ROCE).
ROCE follows the same principle with the accounting rate of returns as they both relate the investment and the accounting profits (Lumby & Jones 2001). It is computed by getting the percentage of average pre-tax annual profits to the initial capital costs. The method has the advantages of simplicity, especially in the computation. This is because it gives a percentage that indicates the rate of return expected from an investment that is familiar to the management. Also, the technique can be easily linked to other accounting measures (Lumby& Jones 2001). However, the method has disadvantages in that it cannot account for project life, the timing of cash flows and mostly varies depending on policies of accounting employed. Additionally, the method ignores working capital and fails to measure the absolute gain attained while it still lack definitive signal for investment (Watson & Head 2010).
Examples
The ROCE technique is quite popular in the assessment of the business performance after the investments are completed (Haka 2006). This technique is widely used as a measure of the business performance as well as to measure the performance of the management (Lumby & Jones 2001). It is most commonly used in the privately owned businesses as it depicts an increase of wealth for the owner. Also, it can be applied in the expression of the financial goals of a business (Watson & Head 2010). Both independent and mutually exclusive projects can employ the ROCE technique. For example, if a project needs an investment of $800,000 and earns cash inflows of 100, 200, 400, 400, 300,300, 200 and 150 in terms of thousand dollars in a span of seven years.
In addition the assets will be sold at $100,000 at the end of the seven years. The ROCE for this project will be 18.75%. The decision rule as to accept the project or not is determined by looking at the expected ROCE and the hurdle rate from the management. If the expected ROCE is more than the target rate, then the project is accepted (Haka 2006). The popularity of this techniques has however been declining most probably due to the inflation rates that have led to higher interests rates making the decision-making process difficult. In this case, the method is best suited for short-term business approaches (Haka 2006).
Investment Appraisal Techniques
Payback period, by definition, is the rough estimate of the time taken to recoup the investments made in a project (Lefley 1996). This technique has two variants: discounted and simple payback periods. The periods are calculated by computing the quotient of initial investment divided by annual cash flow (Lefley 1996). This investment appraisal method has the advantages of simplicity and can use the cash flows and not the accounting profits. This is because the profits in the company cannot be sent and are subjective (Watson & Head 2010). Also, cash is used as the dividends have to be paid. For instance, an expenditure of $2million to get cash inflows of $500,000 per year for some seven years can be assessed using payback. The estimated period will be 4 years and the cumulative cash flow would change over the years. The decision rule in using payback is that the objects that pay up to the specified target payback should be accepted (Wambach 2000). Also, the fastest paying option is always considered.
Also, payback has proven to be very useful in some conditions such as in the improvement of the investment conditions and adaptation to the rapidly changing technology (Lefley 1996). Additionally, the technique maximizes the liquidity, increases company growth while still minimizing the risk.
Comparison of the Two Methods
Despite the numerous advantages, the payback method also has some limitations (Wambach 2000). It does not take into consideration the returns that occur after the period and also disregards the cash flow timings although this can be done by the discounted payback period. In the same regard, it does not provide a definitive investment signal making the method subjective (Lefley 1996). Lastly, the payback method does not take into account the profitability of the project.
The best of the methods in this case would be the payback. This is especially because of the cash flows involved in the projects. The method puts into consideration the time as well as the value for money. Payback is also invaluable especially in the world of unlimited resources and the information provided is understandable (Lefley 1996). ROCE and payback period are both classical techniques in investment appraisal (Wambach 2000). Industries are divided among the two methods although it is possible to utilize both although the non-finance managers prefer to use ROCE (Ross et al. 2010). In this regard, two decisions could be made. For instance, a project could be accepted if the ROCE is below 13% and it can payback within four years (Watson & Head 2010).
Conclusion
The forecasts are important for any business before embankment of any project. Although the investment appraisal may but produce accurate results, it would be important to use as many techniques to avoid losses. Spending on too much on current assets is unrealistic, and the forecasts need to be very careful in order for the best possible value to be gotten. Although several methods for the investment appraisal exist, the return on capital employed and payback remains the most popular one especially with the managers with low skills on finances.
References
Lefley, F 1996, ‘The payback method of investment appraisal: a review and synthesis’, International Journal of Production Economics, 44(3), 207-224.
Wambach, A 2000, ‘Payback criterion, hurdle rates and the gain of waiting’, International Review of Financial Analysis, 9(3), 247-258.
Lumby, S, & Jones, C 2001, Fundamentals of investment appraisal, Cengage Learning Business Press.
Haka, S F 2006,‘A review of the literature on capital budgeting and investment appraisal: past, present, and future musings’ ,Handbooks of Management Accounting Research, 2, 697-728.
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Digital Branding – The Impact of Digitization on the Branding Process: Economic Opportunities and Risks
Digital Branding – The emergence of digital economies and markets has necessitated companies to rethink how they influence and create consumer impressions. Even today, consumers are still brand thinking is still exist just as in the traditional days. However, today, the competition is much stiff and the market much complex. Brands have to depend on social media to engage their consumers, sell their products and also create a following. Today, a brand is seen as a competitive edge of reference, a guarantee to consumers for long term sustainability and security, and dedication to delivering emotional, functional and economic benefits. Such a definition only increases obligations for business to perform, keep innovating while simultaneously keeping cost down. Overall, branding is just a way to justify the price, the quality, functionality, and the product appeals.
To achieve this, companies, even the biggest of them all must depend on digital channels to establish responsive engagement programs for communicating their justifications. However, for the process to be effective, they must understand the consumer because contemporary branding must adopt a consumer centric approach. More importantly, branding is about creating an exceptional experience and lasting impressions in the minds of consumers. Basically, a firm must be able to command attention of consumers with each new product, invention or development. Companies such as Apple who are the global leaders in sale of electronics are able to command such attentions. They have been able to establish themselves as an authority in the field of electronics. Essentially, this is the goal of every small or large corporations. Each company wants to have a dominating factor that differentiates themselves from competitors. This is why there is so much potential in digital branding. They have no boundaries when it comes to engaging consumers.
Dissertation Research Questions
How can digital branding contribute to SME’s growth, development and capacity to compete in today’s markets?
What inputs and factors determine successful digital branding?
Which process of digital branding holds merits in garnering more opportunities and eliminating risks?
What is the best way to increase conversation rates to more sales, better visibility and consumer engagement?
How to make digital branding data actionable?
Digital Branding Marketing Dissertation
Dissertation Contents
1 – Introduction
Problem Statement
Research Questions and Hypotheses
Research Questions
Hypotheses
Significance and Purposes of Dissertation
Methodology
Dissertation Structure
Limitation of Study
Definition
2 – Literature Review
Historical Review: Evolution of the Branding Process
Branding before the 1970s
Branding in the 1970s and 1980s
Branding in the 1990s and 21st century
Theoretical Review: Theories of Digital Branding
Customer Based Brand Equity Theory
Applying the Customer Based Brand Equity Theory
Empirical Literature
Dynamics of Digital Branding in an Interactive and Participative Business Environment
Digital Content and Online Presence
Digital Communication Model
Digital Customer Experience
Digital Branding Communication Tools
Content Branding
Social Media Branding
Brand Identity, Image, Trust, Loyalty, Reputation, Equity in Digital Era
Brand Identity
Brand Image
Brand Trust and Reputation
Brand Loyalty
Collaborative Branding
Corporate Branding
Consumer Behavior in Digital Marketing
Consumer Behavior and Behavioral Biases
Innovation in Digital Marketing – Brand Leveraging and Brand Building
The Red Bull’s Brand Leveraging Strategy
Innovative Brand Building
Content Integration – User and Firm Generated Content
User Generated Content (UGC)
Firm Generated Content (FGC)
Digital Branding Story Telling and Consumer Engagement
Storytelling in a Branding Perspective
Storytelling on Social Media Platforms
Brand Reputation Management – Organizational Rejoinders to Negative Brand Stories
Online Reputation Management
Monitoring – Analyzing – Influencing
Digital Branding Implication on Offline Brand Management
3 – The Ultimate Digital Process – Case Studies of Digital Market Leaders
Uber Digitalization Process
Amazon Digitalization Process
American Express Digitalization Process
Airbnb Digitalization Process
Tesla Digitalization Process
4 – Findings and Analysis: Economic Opportunities and Risks in Digital Branding
Statistics – Visual and Informatics
Data Tables, Figures, and Statistics
Confirmatory Analysis
Exploratory Analysis
Descriptive Analysis – Demographics, Quotations, Data Paraphrasing
Economic Opportunities in Digital Markets
Opportunities in Growth
Opportunities in Product Development
Opportunities in Service Improvement
Opportunities in Diversification
Opportunities in Lead Generation – Cross Sell, Upselling, and Retaining
Increase in Operational Efficiency
Finances – Higher Profits, Less Costs, Pricing, Underwriting
Brand Extension
Risks in Digital Markets
Risks in Reputation Management
Risks in Competition – b2b Engagement
Risks in Content Integration and Channel Conflict
Financial Risks – Budgets, Lower Revenue, Price Volatility
Cybercrime
Obsolete Models, Strategies or Products/Services
Inaction and Lower Retention
Distribution Challenges
5 – Discussion
Compare Findings to Theories
Brand Reputation
Brand Image
Brand Identity
Answering the Research Questions
Answering the Hypothesis
Practical Implications of Dissertation
Pedagogical Implications of Study
Future Areas of Research
Creating an Action Plan for Digital Markets
6 – Recommendations
Choosing a Brand Personality
Winning Strategies in Digital Markets
DRIP Framework
Blue Ocean Strategy
Literacy in Digital Branding
Creating Responsive Digital Platforms
Creating Digital Content
Integrating Digital Platforms
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Human Resource Planning and Management. The firm’s position in the particular industry that it operates determines whether the profitability of the firm can be defined to be above or below the average profitability in the entire industry. Making the profit level of any particular company be above the industry average is a long-term goal of any particular company regardless of the industry in which it operates. To gain long-term above-average profitability level, two types of competitive advantages can help the company rise to such levels.
The first one is either cost management or differentiation. When any firm can keep the cost as low as possible, it will be in a position to charge less and have a broad market base, a factor which is important in improving the long-term profitability levels. The course that is taken by any particular company depends on the leadership focus on either of the two kinds of competitive advantage. The two kinds of competitive advantages lead to four generic strategies that are aimed at ensuring the profitability of the organization rises above average in the long-term. Such includes the broad cost leadership, focused cost leadership, broad differentiation, and focused differentiation. The four Porter’s generic business strategies regarding the business focus affect the human resource planning management of any particular organization in some factors, including in the selection process, screening, training, and compensation among many other factors affecting human resource planning in any specific organization.
Leadership of any organization can decide to focus on any of the two factors of competitiveness depending on the environment in which they are operating as well as their goals. As noted by Pfeffer (2007), any of the generic competitive generic styles that are adopted in any particular organization have and influence on the staffing models adopted by the organization. A choice of one particular style will best fit one staff modeling, which may not be suitable for a different strategy. For example, a choice of one style can result in what Pfeffer (2007) describes as “…disengagement and diminished productivity is the pervasive and growing conflict between work and family…” (117). The style adopted, therefore, influences all the stages of the human resource planning from the selection to retention. The reason is that each style of leadership requires a different pool of employees regarding their qualifications, motivations as well as focus as described by Heneman, Judge, and Kammeyer-Mueller (2015).
Humphrey, Morgeson, and Mannor (2009) describe an organization to comprise of physical, financial and human capital. The three compositions are affected by the leadership choices and focus that are made by any particular organization. Mainly, the generic competitive strategy adopted by different organizations depend and what can be described as “workforce quality” as well as the “workforce quantity” (Heneman, Judge, and Kammeyer-Mueller, 2015). The staffing strategy of an organization focuses on HR planning, recruitment, and selection, employment as well as retention of the employees. An organization that mainly focuses on the reduction of the cost will first of all look at the staffing strategy that will cost the organization the least amount of resources. Therefore, apart from just focusing on the operational cost of the organization, broad cost leadership strategy will include in cost of hiring and retention in the costs of the organization. Given that the staff pool of the organization has a major impact on the total cost of the organization, a broad cost leadership will pay attention to the total cost that goes to its human resource department.
Staffing strategies and staffing models of an organization have impacts on market share, environmental sustainability, deployment, customers’ satisfaction among many other determinants of profitability. Specifically, in the development of the organization’s staffing strategy and models, the leadership pays attention to the effects of these factors on the two kinds of competitiveness which are cost as well as differentiation (Terpstra and Rozell, 1997). For example, broad differentiation business strategy won’t pay much attention to compensation of the employees. This strategy will mainly focus on the quality that the employees bring to the organization without paying much attention to their pay demands. However, the broad cost leadership strategy will focus more on the pay demands of the employees and therefore go for the cheapest means through which they can achieve their objectives. The similarity between the two strategies is that the focus on a wide area as opposed to the focus strategy.
The focused cost leadership and the focused differentiation leadership have some unique characteristics that affect the human resource planning strategies that are adopted by an organization. Rather than focusing on the entire industry, this two generic business strategies pays attention to specific segments of the industry and then pay attention to either cost or differentiation in these particular segments. The main idea as noted by Humphrey, Morgeson, and Mannor (2009) is therefore that these two styles of leadership focus on a narrow competitive scope as compared to the “broad-based” leadership styles. Whether the leadership style in the particular segment focuses on cost or differentiation affects the staffing strategies and models just the same way the broad-based leadership affects this factors, but in a narrow scope for this case.
The cost focus strategy seeks to gains cost advantage in a particular segment of the industry. Therefore, in its staffing strategy, the management and the human resource department will look at the cheapest means to compose its employee’s pool. The screening and the selection process will mainly focus on employees that can help the organization reach its cost limits. Also, the training process of the employees will mainly focus on methods of reducing the cost of operations in the organization. Under this strategy, the organization will be willing to retain a small number of employees that will help in the reduction of the total cost that is incurred by the organization.
Human Resource Planning
On the other hand, differentiation focus will seek to achieve differentiation in a particular segment of the industry. The differentiation focus, therefore, tries to make the products of the company look different from those of the competitors and therefore gain market advantage. Differentiation is an important factor in profitability, and therefore any particular organization must pay attention to it. According to Cole et al. (2004), the level at which the organization achieves product differentiation depends on the pool of employees that they have. Therefore, just as it is with the cost focus, the differentiation focus will also influence the staffing strategies and staffing models that are adopted by an organization. The organization will pay much attention to the “quality” of the employees that will help it in achieving the differentiation target rather cost. Since product differentiation can help an organization keep the prices higher but maintain the customers base, the organization using this strategy will therefore not pay much attention to the cost of establishing this strategy.
Human Resource Planning Strategy
The strategy that any business chooses to adopt has far-reaching effects the entire planning process of the organization. More specifically, the cost focus or differentiation focus of any organization will determine the steps and the processes that will be adopted in the human resource planning process. Human resources planning is defined by Clardy (2008) as the process of adjusting the flow of workers in any organization, both in and out of the firm. The goals of the organization will specifically affect the process of human resource planning as well as the aspects that the planning process pays attention to. The role of the human resources planning for this case will ensure that the organization has a workers pool that will help it achieve the kind of competitive advantage that it has chosen to focus on. The planning process will pay attention to the skills that it requires the employees to have, both today and in the future to achieve the competitive advantage that it requires.
The role of human resource planning is ensuring that the organization has the right number of employees as well as employees that have the right skills to drive the agenda of the organization. As defined by Heneman, Judge, and Kammeyer-Mueller (2015), human resource planning aims at ensuring that the right number of employees are at the right place, at the right time and capable of effectively and efficiently delivering the needs of the organization. It ensures that the organization achieves its objectives through having the right composition of employees. Therefore, human resources planning is essential for any particular organization. The process is greatly affected by the strategy that the organization decides to pursue. This includes all the processes of human resource planning ranging from the screening and selection to the retention stage. Whether an organization chooses to focus on cost or differentiation will affect the whole process of human resource planning, staffing planning, and diversity planning.
When an organization decides to pursue the low-cost strategy, the human resource planning will mainly focus or ensure the organization has the right pool of employees that will help the organization keep its costs as low as possible. Under the low-cost strategy, the firm is trying to take advantage of the prices and therefore have to focus on reducing the prices since this will help them in keeping the prices as low as possible. The main objective of this case is to earn a larger market share through specializing in reducing the prices of the goods and services that the organization offers. This is only possible is the human resource planning will be effective in ensuring that the organization a pool of workers that first understands the goal of the organization and secondly have the right skills to pursue this goal. For the cases of the organizations that focus on differentiation, the human resource planning process must understand that the employees in the organization are a key part of achieving the competitive advantage and differentiation that requires. Therefore, the human resources planning for the case of a firm that chooses to specialize in differentiation will focus on accessing the organization with the right pool of employees that will make the products and the services of the organization look different as compared to other competitors in the market.
Succession Planning
Succession management is important as the workers in the organization need to have certain competencies and skills that will help an organization in achieving its objectives. The human resource planning focuses on the succession management by ensuring that the organization gets the right pull of workers depending on whether the organization focuses on lowing the cost or making its products and services look different when compared to the services that are offered by their competitors. The human resources management for this particular case focuses on training and job security as well as employees’ loyalty, depending on their focus (Clardy, 2008).
The staff planning process of any particular organization is also affected by the strategy that is adopted by the organization. What the organization decides to pay attention to will affect all stages of the planning process. Heneman, Judge, and Kammeyer-Mueller (2015) define staff planning as the process of ensuring that the organization has the right skills at its disposal. Just as human resources planning, staff planning seeks to ensure that the organization has the right number of employees and at the right time and employees possess the required skills to fulfill the objectives of the organization. The staff planning takes into consideration both the internal and external factors and therefore is important in ensuring that the organization achieves its objectives. The recruitment and selection process in staffing and human resources planning deals with discovering the manpower requirement of the organization depending on what the organization wants to achieve. For this case, the selection and recruitment stage in the human resources and staffing process will pay much focus on cost for the low-cost strategy and differentiation abilities focus on the differentiation focus. The staffing planning will focus on attracting a large pool of workers so that it can have the liberty to select the best from the pool.
As explained by MacKenzie, Klaas, and McClendon (2012), the organizations that focus on low cost will focus less on the selection and recruitment process. The organization will try as much as possible to keep the recruitment budget as low as possible. The recruitment processes will mainly use the mouth to mouth and online application to try and reduce the cost of recruitment and selection. However, when the organization decides to focus on differentiation as its tool of differentiation, the recruitment and the selection process will pay attention to different factors. The process will focus on employees that have a large pool of skills and competencies, a factor that is essential in ensuring that the products and services of the organization are slightly different from those of the competitors.
Diversity planning is also important in an organization. The diversity planning focuses on ensuring that the organization has the right mix employees. The process is vital in ensuring that the organization achieves its current and future objectives. Diversity planning will pay attention to the composition of the workforces on numerous factors including the skills mix, sustainability as well as flexibility of the workforce. The diversity palling process is directly affected by the focus of the organization. Whether the firm decides to either focus on cost or differentiation will affect the mix of the employees that the organization would like to have (Highhouse, 1997). For example, for an organization that chooses to focus on differentiation, it would wish to have a more diversified workforce as compared to an organization that pays attention to cost. The low-cost strategy will focus on a mix that that lowers the cost while the differentiation strategy will focus on developing a diverse workforce that will ensure that the organization achieves either perceived or real differentiation.
Under Porter’s generic business strategies, the firm chooses either to focus on cost or focus on differentiation. Also, the firm chooses whether to focus on the entire market or a specific section of the market. The focus of the organization has major influences on the human resource planning management and staffing policies that are adopted by the organization. More specifically, whether an organization decides to focus on a particular segment of the market or the entire market affects that assessment processes as well as the reliability and validity of the assessment process.
Broad differentiation leadership target a large market area and aims at gaining market advantage through differentiation across the entire industry. The strategy concentrates on one or more criteria in the market, and the strategy is always related to creating a premium price in the market. The differentiation strategy is about creating a premium price and then convincing the customers on why they should prefer such products as compared to the products of the other producers, through their prices may be low. This focus will affect the selections process as well as the reliability and validity of the selection assessment processes (Heneman, Judge, and Kammeyer-Mueller, 2015). The selection assessment process for this case will focus on creating differentiation in a large area, and therefore the selection process will mainly focus on skills and competencies that will enable the organization achieves this objective. The differentiation criteria that can be used include superior products, branding, wide distribution channels as well as constant promotion, specifically focusing on a larger area for the case of broad differentiation leadership.
HRM Dissertation Topics
Under the differentiation focus, the organization divides the market into segments and decides to focus on one segment of the market. Therefore, for this case, the organization would both pick a small area in the market or a single product and then decide to focus on that area or product. The choice of the company will influence the selection assessment methods that will be applied by the firm. The organization will focus on the segment since they have seen an opportunity in the provision of goods and services in such an area and believes focusing on differentiation on the region will help the organization achieve competitive advantage. The difference between the broad differentiation and focus differentiation leadership is the target market, with the broad differentiation focusing on a large market while the focus differentiation pays attention to a segment of the market. Such specialization will have an impact on the employees’ assessments methods in the selection process (Clardy, 2008). The methods are mainly affected by what the methods decide to concentrate on. The concentration of the particular selection assessment methods will dictate how valid or reliable the methods used are.
As noted by Highhouse (1997), the organization is in fierce wars of getting the most talented workers from the labor market. They invest large sums of money with the aim of getting the best employees from the available pool of employees in the labor market. The strategies used include job advertisements and recruiting strategies. This is due to managers understanding that the pool of employees is essential to achieving the objectives of the organization. On this note, depending on the strategy of the organization, the organization will select a selection assessment that they feel is best for identifying employees that best fit what they are looking for. Numerous selection methods can be used by an organization depending on whether the organization has decided to focus on a larger market or specialize in a single segment of the industry. For organizations that mainly focus on differentiation, formal assessment methods are used. This is because the firms are keen on getting the right pool of employees that will push the agenda of the firm forward.
The specialization that the firm chooses to focus on regarding differentiation affects the job analysis in the selection process. There are procedures as noted by MacKenzie, Klaas, and McClendon (2012) that are used in the development of the selection criteria. The procedures are affected by the size of the market that the organization decides to focus on. The competencies and skill that each strategy looks for are different, a factor that affects the selection assessment procedures. One of the most used assessment methods is the Cognitive Ability Tests. The methods mainly focus on measuring the mental ability of the prospective employees.
Other criteria measured under the test includes the reasoning ability, reading comprehension as well as mathematical abilities. The cognitive selection assessment criteria have been used as a predictor of the job performance of the employees. For the case of this test, the broad differentiation leadership will focus on employees with higher mental abilities that can help the organization achieve competitiveness through differentiation in a larger segment of the market. On the other hand, as observed by Heneman, Judge, and Kammeyer-Mueller (2015), the focus differentiation leadership style will focus on abilities that will help the organization focus on a particular segment of the market. Whether the organization focuses on the larger area or a segment of the market will also affect the applicability of this selection assessment method. The broad differentiation strategy mainly relies on this selection criteria since it focuses on the ability of the employees to deliver the competitive criteria of the organization. The reasoning, mathematical and verbal abilities of the employee are essential for this strategy.
Other selection test Personality Tests, Biographical Data test, Integrity Tests, Structured Interviews, and Job Knowledge Tests. The job knowledge test is another selection test that is influenced by the strategy that is used by any particular firm. This selection assessment method measures the knowledge area that is required for a person to perform a certain job effectively. For this case, the broad differentiation technique will be paying attention to employees that can deliver differentiated products focusing on a large area.
For the case of focus selection assessment methods, it will pay much focus on the ability of the employees to focus on a given section of the market. The reliability and validity of this selection criteria are also affected by the strategy that the organization seeks to pursue. This criterion is mainly used by firms that seek to focus on a given region (Kulik, Roberson, and Perry, 2007). The firms under this test look for the best employees that know the particular segment. Therefore, this method is more valid and reliable under the focus differentiation leadership as opposed to broad differentiation leadership. When used under the broad differentiation leadership, the test focuses on employees who know a bigger segment of the market, which the firms seek to sell the differentiated products and services. Therefore, as shown by the analysis of the cognitive selection assessment and the job knowledge test, the focus of the organization regarding differentiation significantly influences the selection assessment methods as well as the reliability and validity of the methods.
References
Clardy, A. (2008). The strategic role of human resource development in managing core competencies. Human Resource Planning Development International, 11(2), 183-197.
Cole, M., Field, H., Giles, W., & Harris, S. (2004). Job type and recruiters’ inferences of applicant personality drawn from resume biodata: Their relationships with hiring recommendations. International Journal of Selection and Assessment, 12(4), 363-367.
Heneman III, H., Judge, T., & Kammeyer-Mueller, J. (2015). Staffing Organizations (8th Edition). Middleton, WI: Mendota House/McGraw-Hill.
Highhouse, S. (1997). Understanding and improving job-finalist choice: The relevance of behavioral decision research. Human Resource Planning Management Review, 7(4), 449-470.
Humphrey, S., Morgeson, F., & Mannor, M. (2009). Developing a theory of the strategic core of teams: A role composition model of team performance. Journal of Applied Psychology, 94(1), 48-61.
Kulik, C., Roberson, L., & Perry, E. (2007). The multiple-category problem: Category activation and inhibition in the hiring process. Academy of Management Review, 32(2), 529-548.
MacKenzie, Jr., W., Klaas, B., & McClendon, J. (2012). Information use in counter-offer decisions: An examination of factors that influence management counter-offer decisions. Journal of Labor Research, 33, 370-387.
Pfeffer, J. (2007). Human Resource Planning from an organizational behavior perspective: Some paradoxes explained. Journal of Economic Perspectives, 21(4), 115-134.
Terpstra, D., & Rozell, E. (1997). Why some potentially effective staffing practices are seldom used. Public Personnel Management, 26(4), 483-495.
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MBA Operations Management students will learn that in business there are always individuals that are responsible for the managerial and supervisory activities. For a business to operate in the most efficient and conducive manner, the mode of operation needs to be advanced and even overseen by someone else. The research described these individuals as managers. The core objective of all the business or organizations is always to maximize profit. For these to take places, all the operations of the firm need to be correctly managed. Each business is managed through various business functions in which each function is responsible for managing a certain aspect of the business and as I had said earlier the core objective of all businesses is to provide the correct and appropriate requirement to the customers by offering goods and services (Stevenson & Hojati, 2007). The president or the CEO of a company is faced with a daily marketing, operational, financial and information tasks. Marketing is a sector responsible for the generation of customer demand, sales and understanding customer’s wants and needs. Finance is responsible for the management of capital investments, the flow of cash and current assets. The information sector, on the other hand, is in charge of the constant stream of information in and out of business. The operating divisions are responsible for the management of the goods and services (Chase, Aquilano & Jacobs, 1998).
Importance of MBA Operations Management
Therefore it is imperative for the manager to equally distribute the available resources in the business so has to ensure all the sectors are covered. Some of the cited sources will agree with my line of thought if I argue out that all the areas of management are to be treated evenly since they depend on each other. However, in this essay, we are going to discuss a lot about operational control answering all the questions in short subtopics. The essay will begin with the introduction to the body and finally to the conclusion.
Describe the Role of Operations Management in the Firm and How This Role Can Lead To Competitive Advantage and Profitability
Operating management by definition refers to act of administering business practices to establish a high level of efficiency in business (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). The method involves the conversion of labor and other factors of production into goods and services that are efficient enough to raise a maximum profit. An MBA Operations Management team has the duty to identify which of the factors of production best suits the company. They also work under a close surveillance and ensures that the cost of production is achieved once the products have been sold. Modern researchers refer to the task of being an operating manager as one of the hardest and the primary duty of an organization. Despite having other sectors, operation management forms the main reason why a business was created. It involves a lot of functions such as planning, coordination of activities, organizing and planning all the resources as they are channeled to goods and services as the end product.
A few scholars also argue that being that operating management has a management function; it, therefore, means that it can also be involved in managing equipment’s, people and technologies that are needed in the production process (Chase, Aquilano & Jacobs, 1998). Operation management includes two very core aspects or rather two terms that need to be wee understood before engaging into being an enterprise manager. The two terms are the supply chain management and the logistics both of which will be covered in the MBA Operations Management module.
MBA Operations Management student will learn that the two terms act as the foundation for the business management and to out compete other competitors; one is expected to understand what exactly is meant by the terms. Take for example following the trends of supply and chain management globally; this will enable the team to strategies accordingly thus meeting the customers demand. While in logistics, it is critical to understand the use of resources in a cost effective way since there has been a trend where the resources are scarce, and the demand of the customers is skyrocketed (Cases & Case, 2004).
Often writers and employers confuse the skill required for efficient operation management and those that are needed in the logistics and supply chain management (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). One of the abilities that would be much appreciated is the consummate organizational skills. The completed organizational skills enhance efficiency and drive the productivity to another level as well. One must be able to understand the operations and coordination of activities in the firm to show effectiveness. However, operational management is a broad spectrum sector in a business and when well managed can lead to a lot of advantages to the firm. The scopes of executive management include decision making. Decision making involves making decisions on what type and kind of goods to be produced and with quick decision-making process the entire production process will be efficient and fast thus creating a lot of profits (Stevenson & Hojati, 2007).
Adding on the objective of the operation system, a complete operational objective must aim at a competitive advantage (Krajewski, Ritzman & Malhotra, 1999). A business or an organization is considered to have a competitive edge when its profitability is greater than the average profitability of the other competing companies of the same set of customers – This will be explained in the MBA Operations Management module. This can be achieved by emphasizing on specific areas of operation with the intent of meeting the client’s request. A good operating management should be able to perform the following; adaptability advantage, reliability advantage, and service delivery advantage. Through these, the company can make significant profits and become more efficient as expected.
Discuss Systems To Take Advantage Of Capital, Location, And Labor Differences So That Profits Are Maximized. MBA Operations Management
MBA Operations Management students will appreciate that the core objective of every organization is to make a profit and to minimize the cost of production. However, in the market as per the general information, we get that some specific companies often perform better than others (Stevenson & Hojati, 2007). This happens due to the difference in various points of concentration, especially during the production process. Companies differ in labor, capital, and their locations and this can lead to an advantage of a particular company against another. This variance in the factors of production is the reason why we have a best-performing company and another one that performs poorly. Therefore, every company has invested in specific systems that will fully exploit the potential of these factors of production thus favoring them. Operation management also plays a very general role of logistics during the system establishment (Chase, Aquilano & Jacobs, 1998).
Research covered in the MBA Operations Management module indicates that many successful companies apply the system of specialization of labor to help to maximize their profits (Cases & Case, 2004). Employees often have strengths and weaknesses, and those that are encouraged to yours their strengths are more loyal and engaged. Remember specialization does not only apply in the case of employees, but it also uses to material resources.
MBA Operations Management
The best thing about specialization is that the workers get to choose what they love to do according to their ability and natural aptitude and this gives them the opportunity to perfect those skills thus saving a lot of production time. This prevents the delays that are created by the continuous shifting of workers from one point to another. Through this specialization, a company can make good use of his laborers thus increasing the profit levels. Labor specialization system works hand in hand with the division of labor in a company (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). This will ensure that the duties are only performed according to the line of interest. Material specialization will mean that a particular material will be developed and adapted for a specific use.
On a regional basis, each region will produce the products that they are best suited. This can be applied to both locational and capital systems – This will become apparent on the MBA Operations Management module. A combination of material specialization and human specialization can lead to a maximized efficiency (Stevenson & Hojati, 2007). Capital systems can also be used to ensure that there is adequate and abundant production in the firm.
Through the use of capital goods, it will enable the producers to produce more efficiently and surplus output. The company’s capital should be invested in short term avenues that can translate excess profits within the shortest time, in this way we will be able to out compete effectively in the market. Priority is also another factor that needs to be considered especially when distributing capital in the business. Activities that have a real history on profit maximization are to be considered the first. On location of the company and its effects to profit maximization is also important as well. Location of the company should be based on specialization and distribution of raw materials (Chase, Aquilano & Jacobs, 1998). The movement of raw materials to the company should be profitable, and the same applies to consumer’s accessibility to the firm. In other words, the location of the company should be close to the market as well as the raw materials thus reducing unnecessary cost.
Outline how planning the operations system takes place and how international considerations are integrated into planning
As discovered in the MBA Operations Management module, planning can be defined as the process of analyzing, researching, anticipating and influencing change in society (Wacker, 1998). Various pieces of literature indicate that before an action is executed, it is important to draw a plan to avoid things falling apart as it was not planned. Therefore it is very healthy to plan for activities in a business environment before their execution. Planning is a role that is left for the managers and the executives to perform in a healthy business climate. Moreover, many other activities are incorporated in planning. A strategic planning of the operation can communicate what the institution is striving to become and it also maps the necessary step that is needed to get to the target. In the past, the operational plans of a company used to take an entire ten years but today companies even plan year by year (Fitzsimmons, Fitzsimmons & Bordoloi, 2008).
MBA Operations Management graduates state that planning is a procedures activity that involves gradual processes for the plans to be approved and exhibited appropriately. First, the vision of the organization needs to be stated and used as guidance during planning (Krajewski, Ritzman & Malhotra, 1999). The vision statement is approximately two to three sentences that spell out the intentions of the company; it shows how far the organization is willing to strive and reach. It is important to understand the organization right before the vision is created. At this point is important to create the image within the international standards that doesn’t violate any business law of operation. The next step in planning is to write the mission statement – This has been covered in the MBA Operations Management module through the year. Mission statement unlike the vision statement, explains what the organization exists and the path it will take to achieve its vision. Business wise, the mission statement is usually shorter than the mission statement.
A similar process is used in the construction of the mission statement. However, in the mission statement is where many people display false information. This is common with the organizations that deal with illegal products. The third process in planning is to perform a gap analysis. Gap analysis involves the comparison between the current operational situation and the vision of the company. This stage requires a lot of innovativeness and future oriented individuals. This is because there is need to compare the current situation and what the business hopes to be (Cases & Case, 2004). This process is much involving as it requires a collection of data and information outside the firm. The gaps that need to be examined include financial differences, customer relation, market share and internal systems.
Formulation of goals is the fourth step in the planning process. The goal can either be short term or long term. In many occasions, they are always referred to as SMART goal (Chase, Aquilano & Jacobs, 1998). The goals need to be implemented right from the managerial level to the employee level. Lastly, monitoring the progress of the plans. The goals should be followed in every quarter of the business year. This is usually done by inquiring from those who are responsible in such areas. The above processes are inclusive of other minor steps that are also of importance in the process of planning. The international laws are always considered when an organization is planning. Ethical consideration at an international level, morals, and other core values are also applicable (Stevenson & Hojati, 2007). During the operational planning, another important thing is the consideration of the international laws that govern all the business activities in the globe.
Describe some of the quantitative tools and techniques of Operations Management and how these are applied to formulate solutions to business problems.
In an organization, managers and the CEO always rely on their experiences in making decisions. However, in some situations, they would like to know what exactly the number saying is (Schmenner & Swink, 1998). In such circumstances, there is need to use quantitative methods especially when it involves an era of big data. The method, therefore, has been used by several operational analyzed to provide evidence that can guide in managerial, distribution, marketing, and personal decisions. The method also helps the executive team to predict what is expected to happen in future. This does not mean that the qualitative methods are point blanks, but they are also preferred in an individual situation. The manager is supposed to convert the inputs that are inclusive of the factors of productions into outputs (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). The quantitative techniques and tool include regression analysis, linear programming, factor analysis, data mining and descriptive data analysis.
Descriptive Data Analysis
This process involves the use of pie charts, maps, graphs, frequency tables, histograms, control charts, run charts and Ishikawa diagrams. They are used to analyze mainly the descriptive data in the production process. Research indicates that this can be achieved by entering the data into software like EXEL, STATA, SPSS and other software used for the analysis (Cases & Case, 2004). This method can be used to identify the problems realized in the business and attended to accordingly.
Regression Analysis
This is a traditional method that is mainly used by economists and the operational analysis; regression involves the use of complex statistical equations that help to predict the future output and maybe find out the cause of the past problem. This can significantly benefit the business. The products of the regression equation are known as the predictors or the dependent variables. Research indicates that economists and businesses have used the regression formula to estimate effects of advertisement expenses in companies (Chase, Aquilano & Jacobs, 1998). Though the utilization of this method, we can determine the correlation between two products in the business.
Linear Programming
All organizations and companies are faced with the problem of scarce resources. This usually calls for a selective allocation of resources, and this often gives the manager a little bit of challenge. Linear programming, a conventional technique of management analysis and operational research (Schmenner & Swink, 1998). This is a mathematical program that helps us determine how to achieve optimum outcomes. It is also indicated that it can help in manufacturing and transport analysis.
Factors Analysis
This method is used to survey data and group statistical data accordingly. It explores all the avenues to find out the correlations and relationships (Krajewski, Ritzman & Malhotra, 1999). For example, the method can be used by market researchers to analyzed data on consumer’s consumption habits. This will then help the organization with the product knowledge as they will be able to determine what quantity they should produce.
Data Mining
Research indicates that this method has grown over the years. It is used to analyze a large amount of data. This has been used by big business like the Amazon to monitor consumer’s behavior.
Discuss business situations for which tools of Operations Management can be applied.
According to recent scholars, operation management involves directing and managing the physical and technical functions of an organization (Cases & Case, 2004). The skills and tools are used in the development, manufacturing, and production processed in the operation sector. The tools are used in the below-explained processes and will be covered off in the MBA Operations Management module:
Project Management
Project management is a common factor in both large and small companies, and it often takes a lot of time to plan. From the accessing the supplies and delegating the employees to all the shipment cost and all the activities involved in the manufacturing of the products. The project management tools can be used in an organization to strategically plan creates a budget, salaries, overhead costs and every detailed information about the business. The spreadsheet can be used to manage all the activities and track areas not covered (Stevenson & Hojati, 2007).
Quality Control and Inspection
Assessment of the products is a significant activity in the manufacturing process. Assessment is important because it will enable the business to track whether it has met its goals or not. Additionally, assessment should form part of the regular management process to ensure the project is completed (Wacker, 1998). Literature shows that it is always healthy to criticize the outcome and even establishes other realistic expectations.
Equipment Maintenance Policy
Depreciation is expected in any business and therefore maintained is expected as well. The equipment should, therefore, be regularly checked to ensure they are still in a position to function effectively. For example in a vehicle company, the cars are expected to be continuously serviced when the time arrives (Chase, Aquilano & Jacobs, 1998). Computers and hardware needed to be checked for virus and cleaned to ensure a stable functionality. The maintenance calendars can be created by the operation tools and equipment.
Product Scheduling
This is also another instance in which the tools can be effectively applied. Manufacturing companies complete their product arrangements to get them from the product establishment to the respective point of sales to the consumers. This can be done using plan long range projects. The process is usually effective especially when the company is dealing with a significant number of customers (Cases & Case, 2004).
Explain how control of operations must respond to changes in the international economy.
Today’s economy is far much different from the economy of the olden days (Krajewski, Ritzman & Malhotra, 1999). The globally economy changes gradually day by day and these calls for a relatively positive response from every organization that is associated with the international trade. In a business environment, it is the duty of the managing director responsible for the operation to ensure that the company adapts to the changing global economy. From the financial perspective, organizations are intentioned at making high profits, and therefore it should vary its price with the world’s market price. Through this method, it will be able to secure a large section of the consumers (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). In other words, the operation must respond effectively to the change in prices of goods and services.
Control of process must also meet the consumer’s demand on an international scale. The quantity and quality of good should meet the customer’s demand. The service team must ensure that they manipulate the consumers into buying their products without going into loss. This can be done by forming business merges and also ensuring that a lot of awareness is created (Stevenson & Hojati, 2007). The company should also be in a position of responding to the technological changes in the international market. Recruiting young and innovative minds to handle the technological shifts in the organization. This can also be advanced through training the worker on how to cope up with the constant changes in the body.
Conclusion
MBA Operations Management students will learn and appreciate that operation management forms the center of many organizations has it is characterized by several functions including planning, staffing, and production. Through the correct exhibition of duties, it can lead to the creation of a lot of profits. Through specialization, excellent location and use of capital goods, an organization can make a lot of benefits depending on the available resources. However, for this to occur appropriate operational tools such as linear programming should be used to predict the future outcomes in the organization. Such tools are always essential in project management and even in quality assessment.
References
Cases, T., & Case, F. (2004). MBA Operations Management.
Chase, R. B., Aquilano, N. J., & Jacobs, F. R. (1998). Production and operations management. Irwin/McGraw-Hill,
Fitzsimmons, J. A., Fitzsimmons, M. J., & Bordoloi, S. (2008). Service management: Operations, strategy, and information technology (p. 4). New York, NY: McGraw-Hill.
Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (1999). MBA Operations management. Singapore: Addison-Wesley.
Schmenner, R. W., & Swink, M. L. (1998). On theory in operations management. Journal of operations management, 17(1), 97-113.
Stevenson, W. J., & Hojati, M. (2007). MBA Operations Management (Vol. 8). Boston: McGraw-Hill/Irwin.
Wacker, J. G. (1998). A definition of theory: research guidelines for different theory-building research methods in operations management. Journal of operations management, 16(4), 361-385.
Recommended Reading For MBA Operations Management Students
Operations Management for MBAs by Jack R Meredith and Scott M Shafer
Handbook of Decision Analysis (Wiley Handbooks in Operations Research and Management Science) by Gregory S. Parnell PhD and Terry Bresnick MBA
Operations and Supply Chain Management for MBAs by Jack R. Meredith and Scott M. Shafer
Operations Management by Prof Nigel Slack and Prof Alistair Brandon-Jones
I hope you enjoyed reading this post on MBA Operations Management. There are many other titles available in the business management and MBA dissertation collection that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
