Management

July 24, 2017

Definition of the project goals

Production: The project program seeks to produce 10000 rubber components that suit the supplier’s requirements.

Project scope statement

This project called production of rubber components aims at producing 10,000 rubber components for Poly Products Incorporated. The company has received the Invitation for Suggestion for the built-up of 10,000 rubber products. The goal of the project is to form an accurate plan of operations and manufacturing of the rubber components.

The production project has two activities that have the following scope.

The project seeks to produce 10000 rubber components that must meet the supplier’s requirements. The supplier’s requirements are that the project should be done within 18 months,

Setup:  the quality control program should be acceptable between the two contracting parties, the vendors selected to supply project materials must be licensed for a continuous supply. There will be a flexible material selection conferred to the contractor if he utilizes technology in material testing at all levels. And finally, the project will be based on firm-fixed pricing method that will also see the contractor develop own work breakdown structure upon final approval by the client.

Objectives of the project

  • To create a plan to manufacture 10,0000 rubber elements
  • To study the probable plan that can effect on completion of the manufacturing process of the production project.
  • To increase the ability to manufacture the 10,000 rubber components that relates to the time and cost allocated.

 

Work breakdown structure

According to Snyder, (2013) the practicality of a work breakdown structure is greatly influenced by the production and procurement contractors. Consequently, the cost analysis factor is greatly dependable on the decision these agencies make out of the process. Additionally, a work breakdown structure defines the tasks and milestones that need to be achieved so that the project can meet the deliverables. Thus the structure gives a foundation that project planning, allocation, and tasking of resources are done in a given manner. The following shows how tasks will be broken down into subtasks and later work packages.

Source; Kheder, (2014)

In the above diagram the projects, in this case, will be; project 1; support with tasks such as project office and functional support. The Second project will be pre production that will involve tasks such as research and development and qualification. The third project will be a production with tasks such as setup and production.

Project schedule

 

 

 

 

 

 

 

 

 

 

 

Program Rubber components production
Task Project 1: Support

TASK 1: Project office

TASK 2: Functional support

Project 2: Preproduction

TASK 1: Research & Development

TASK 2: Qualification

Project 3: Production

TASK 1: Setup

TASK 2: Production

Percentage Complete 0%
Prominence Not in progress
Day happening To be confirmed
Day to be finalized To be established
Actual close date To be considered
Task assignment Project Manager,  Project Team
Priority Performance standard for grade 7 employees

Duration is 18 months

Each production should require four months

Rubber components should be manufactured according to client’s specifications.

Milestones  
Notes  

 

 

 

 

 

 

 

 

References

Heldman, K. (2015). PMP project management professional exam deluxe study guide: updated for the 2015 Exam. John Wiley & Sons.

Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kheder, M. (2014). Project Scope Management (Streaming video).  https://www.youtube.com/watch?v=7wvk9DZEgtw  ProjectLibre. (n.d.)

Rose, K. H. (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition. Project management journal44(3).

Snyder, C. S. (2013). A project manager’s book of forms: A companion to the PMBOK guide (2nd ed.). Indianapolis, IN Wiley Publishing

 

 

Social Cognitive Theory

July 21, 2017

The purpose of the study was to determine the relationship of coping style with wellbeing of adolescent prisoners. This was after the reviewed literature revealed that incarcerated adolescents represent a vulnerable group to severe psychological distress. While the adolescents are most likely victims of home violence at young ages while others abuse drugs and alcohol, they suffer from isolation, bullying, and boredom during incarceration. It is notable that some prisoners only experience high levels of distress during their first weeks in prison and later cope with prison life while others maintain significant distress levels resulting to high risks of suicides, depression and anxiety, and self-harm. The study was carried on 133 male adolescent prisoners to determine the effect of coping theories (Brown & Ireland, 2006). According to coping theories, Sharma (2016) argues that distress is moderated by a person’s behavioral and cognitive efforts to reduce the impact of stressors.

The study reported that there were significant decreases in depression and anxiety six weeks after incarceration. It was also reported that as people stay in prisons, emotion coping decreases while detachment coping increases as a result of significant decreases in depression and anxiety. Prisoners who change from emotion to detachment coping have lower distress levels and this is helpful in the context of the initial incarceration period. It was also reported that newly imprisoned adolescents can modify their coping style and this suits specific environmental demands. This theory is applicable to determine how to help prisoners adapt to prison environment or to change prison environment to reduce distress levels. This is because high rates of re-offending are linked to inappropriate coping responses. In addition, prisoners experiencing long-term emotional suppression leads to deleterious effects on psychological and physical health (Brown & Ireland, 2006).

 

 

References

Brown, S. L., & Ireland, C. A. (2006). Coping style and distress in newly incarcerated male adolescents. Journal of Adolescent Health, 38(6), 656-661.

Sharma, M. (2016). Theoretical foundations of health education and health promotion. Burlington, MA: Jones & Bartlett Learning.

 

 

 

Management science

July 21, 2017

Question 1: Minimax, Laplace Maxmax

There are three possible decisions.

  1. Setting up a plant at Cliff’s end.
  2. Setting up a plant at Manston.
  3. Setting up a plant at Birchington.

Payoffs

Using the output information for each plant, the variable costs and fixed costs were forecasted, as shown in table 2. Since profitability in economics is derived as the difference between total costs and variable costs (Varian & Repcheck, 2010), the fixed costs were amortized over the period of five years, and were then included in the total cost. This total cost was then subtracted from the revenue in table 1 to get the profit, which has been used as the payoff in table 3.

Table 1: Revenue

Revenue (kg) 2018 2019 2020 2021 2022
Cliffs end 100000 108000 116640 125971 136049
Manston 120000 129600 139968 151165 163259
Birchington 140000 147000 154350 162068 170171

 

Table 2: Costs

Fixed cost (Total fixed cost/5)
2018 2019 2020 2021 2022
Cliffs end  £                     30,000.00  £    30,000.00  £    30,000.00  £    30,000.00  £    30,000.00
Manston  £                     34,000.00  £    34,000.00  £    34,000.00  £    34,000.00  £    34,000.00
Birchington  £                     37,000.00  £    37,000.00  £    37,000.00  £    37,000.00  £    37,000.00
Variable cost (kg) (variable costs * number of forecasted units)
2018 2019 2020 2021 2022
Cliffs end  £                           48,000  £          51,840  £          55,987  £          60,466  £          65,303
Manston  £                           54,000  £          58,320  £          62,986  £          68,024  £          73,466
Birchington  £                           60,200  £          63,210  £          66,371  £          69,689  £          73,173

 

Table 3: Payoffs

=Revenue-fixed costs-variable costs 2018 2019 2020 2021 2022
Cliffs end  £                           22,000  £          26,160  £          30,653  £          35,505  £          40,745
Manston  £                           32,000  £          37,280  £          42,982  £          49,141  £          55,792
Birchington  £                           42,800  £          46,790  £          50,980  £          55,378  £          59,997

 

The question assumes that the different states of nature have the same probability of occurrence (0.3). Consequently, the La Place score is £46,960.5 as shown in table 4 below.

The formula is = 0.3* Payoff of each action

Cliffs end  £                       29,040.0  £      33,069.0  £      37,384.4  £      42,007.3  £      46,960.5
Manston  £                       22,440.0  £      25,221.0  £      28,188.6  £      31,355.8  £      34,736.9
Birchington  £                       21,552.0  £      23,957.7  £      26,509.2  £      29,215.7  £      32,087.4

 

Maxmax

=£59,997. This is the highest payoff, as illustrated in table 3.

Maximin

=£42,800. Of all of the payoffs in the different states of nature, this figure is the biggest among the smallest, as shown in table 3.

Question 2: Weighted factor scores

Machines IC Weight 0.2 RC Weight 0.4 EM Weight 0.1 EO Weight 0.2 EI Weight 0.1 Total weighted Score
Score /10 WS Score /10 WS Score /10 WS Score /10 WS Score /10 WS
Gaggia  8 1.6 6 2.4 7 0.7 8 1.6 9 0.9 7.2
Macchina Cioccolato Bosch 7 1.4 9 3.6 8 0.8 8 1.6 8 0.8 8.2
Schokoladen Maschine Callebaut 6 1.2 8 3.2 8 0.8 9 1.8 8 0.8 7.8

Key:

IC = initial cost

RC =Running cost

EM = Ease of maintenance

EO = Ease of operation

EI = Ease of repair

The weights have been assigned up to a limit of 1 (or 100% if converted into percentage). Since Macchina Cioccolato Bosch has the highest weighted score, it is the best machine to use.

Question 3: Linear programme

  1. Chocolate
Ingredient for chocolate Cost per tonne Minimum per tonne Cost per tonne Units per tonne
cocoa butter  $                               3,180 10%  $                         318 0.1
cocoa liquor  $                               3,200 10%  $                         320 0.1
Emulsifier  $                               1,200 1%  $                            12 0.01
Lactose  $                               0.002 50%  $                      0.001 0.5
Sugar  $                                  600 12%  $                            72 0.12
Total  $                         722 0.83

 

Variables

Amount of cocoa butter used = X1

Amount of cocoa liquor used =X2

Amount of emulsifier used= X3

Amount of lactose used = X4

Amount of sugar used = X5

Constraints

Units

0.1X1+0.1X2+0.1X3+0.5X4+0.12X5 ≥0.83 tonnes

Costs

$318 X1+$320 X2+$12 X3+$0.001 X4+ $72X5 ≥ $722

Minimise = 0.1X1+0.1X2+0.1X3+0.5X4+0.12X5

Because these are the minimum acceptable requirements for 1 tonne (1kg) of chocolate, and they are not negotiable since the machine produces batches of 1000kg of chocolate.

Restrictions

X1>0

X2>0

X3>0

X4>0

X5>0

  1. Filings
Filings Minimum portion of the filing Units per 200 litres
Sugar 88% 176
Gelatine 10% 20
Passion fruit essence 2% 4

 

Variables

X1 = Cost of sugar from supplier X

X2 = Cost of gelatine from supplier X

X3= Cost of passion fruit essence from supplier X

Y1 = Cost of sugar from supplier Y

Y2 = Cost of gelatine from supplier Y

Y3= Cost of passion fruit essence from supplier Y

Objective = Minimise X1+X2+X3+Y1+Y2+Y3

Constraints

= 174XY1+20XY2+4XY3 ≥200 units of input

=X1*0.8 + X2*0.2 + X3*0 + Y1*0.9 + Y2*0.05 + Y3*0.05 ≤ £2.45

Since passion essence only contributes up to 5% to the filing, yet increases the unit cost from supplier Y by £46 more than the assumed 2% cost of the passion essence (minimum 2% * the total cost – cost of sugar), reducing the demand for Supplier Y’s product to 5% would reduce the costs drastically, in the model presented below.

=X123*0.95+Y123*0.5.

 

Reference

Varian, H. R., & Repcheck, J. (2010). Intermediate microeconomics: a modern approach (Vol. 6). New York: WW N

 

Site Fixed cost for 5 years Variable cost per Kg Selling price
Cliffs End 150000 0.48 1
Manston 170000 0.45
Birchington 185000 0.43
Forecasts (tonnes)
2018 2019 2020 2021 2022
100 108 117 126 136
120 130 140 151 163
140 147 154 162 170
Weight 0.2 0.4 0.1 0.2 0.1 1 #N/A
Machines Initial cost Weight 0.2 Running cost Weight 0.4 Ease of maintenance Weight 0.1 Ease of operation Weight 0.2 Ease of installation Weight 0.1
Score Total weighted score Total weighted score Total weighted score Total weighted score Total weighted score
Gaggia 8 1.6 6 2.4 7 0.7 8 1.6 9 0.9 7.2
Macchina Cioccolato Bosch 7 1.4 9 3.6 8 0.8 8 1.6 8 0.8 8.2
Schokoladen Maschine Callebaut 6 1.2 8 3.2 8 0.8 9 1.8 8 0.8 7.8
4.2 9.2 2.3 5 2.5
1
cocoa butter  $3,180 10%  $318 318000 0.1 100
cocoa liquor  $3,200 10%  $320 320000 0.1 100
emulsifier  $1,200 2%  $24 24000 0.02 20
lactose  $0.002 55%  $0.001 1 0.55 550
sugar  $600 12%  $72 72000 0.12 120
 $734 0.89
X1
X2 X1 0 X2 0 X3 0 X4 0 X5 0
X3 Minimum amount 100 100 20 550 120
X4
X5 Cost  $318  $320  $24  $0.001  $72
Constraints 0.1 0.02 0.55 0.12
0 <= 1000
 $- <= 722
Minimise

 

Transition To Adulthood Interview Project

July 20, 2017

Transition To Adulthood Interview Project

Ashley believes holding a job that enables a person to support themselves is necessary to adulthood, but more important than that is being old enough to make one’s own decisions. This action is similar to what the other two respondents said. Sydney claimed it was most important to be financially stable, while autonomy and mental maturity were also milestones. Morgan placed all the significance of being an adult on financial independence. While my classmates were mostly in agreement that adults are defined primarily on financial self-sufficiency, my own definition emphasized age and mental capacity. Most of the people supported the financial independence because adults choose what to acquire without or minimal interference from other people. However, my definition of mental capacity and age is supported from the articles provided because adults interact from different environment and do gain experience on how to interact and associate with the people developing their mental capacity due to their existence in the world.

Even though I have never been able to afford my own place, I believe I have been an adult for several years. I have lived with family, friends, and my girlfriend, all the time considering myself as an adult. I have known many people who cannot make decisions for themselves and break down when life throws them a curve ball because they always carry out consultation and require guidance before making decisions. I still consider them adults, even though they act like children because these characters are associated to children who are not sure of what they want. There is a transition into adulthood that some people start and finish earlier than others.these transmission is influenced by many factors.  It is primarily physical (being fully physically developed in my early twenties made me feel like an adult), but it is also the mental, emotional, and financial development of a person that makes them a fully-grown individual. These developments go hand in hand with the evolution into adulthood because I had to physically grow where by body parts increased, the mental development is the thinking capacity and reasoning opportunity I acquired through the growth. The emotional growth is the feelings that develop into adulthood like love, being happy, angry, and sad. Lastly, the financial development is being able to earn or have income that is completely mine and none can dictate me on what to do with it. This development is increased because an adult get involved in many activities that earns him or her income.

I developed my beliefs on adulthood by my own journey, as well as observing others, but Ashley’s parents taught her what it means to be an adult. Sydney did not learn directly from her parents, but she learned by observing her parents and more recently observing her peers. Morgan learned from her parents and society in general, particularly through the media, the defining characteristics of a grown-up. Everyone learns things differently, and is impacted at different levels by common sources. These explanations illustrate how learning takes place. Some learn by observation while others are taught directly by the people in their surroundings. Additionally, the environment dictates how learning and development takes place. Thus, it makes sense that we all had different understandings of adulthood, just as we have all had different transitions into adulthood.

One’s family is possibly the biggest influence on when and how a person transitions from childhood into maturity takes place. Ashley’s parents provide her food, clothes, and shelter. These actions enables her to focus on school work for as long as she want until she can graduate and get a job that sufficiently pays for her independence. Her parents took out student loans in her name to pay for college fees, which is very different from my experience of getting a job, paying a portion of rent, and taking out my own student loans. This situation could be the determining factor in why Ashley feels she’s not yet an adult. This reason is because Sydney is still pampered and does not feel obligated to take care of some responsibilities that are being performed by her parents. Sydney has a job, but her parents still pay for her tuition and rent. Morgan’s parents pay for everything, but she works part-time so she can give them back some of the money they spend.

Other than the physical transition, parents and children each decide when the other transitions into adulthood start. Ashley’s mother moved out of her parents’ house as soon as she could after high school. Ashley’s father moved out at twenty-six, but he continued to help his mom financially. Both of Ashley’s parents started working in their teens and are very supportive of Ashley going to college, so she doesn’t have to struggle like they did. Ashley is much closer to her parents than we are with our parents, even though her dad is somewhat close with his mom.

Sydney’s parents both moved out after high school, and her dad put himself through college while working full-time. They are both very happy and supportive of their daughter because they were “thrown into [adulthood].” She’s much closer to her parents than they were to their parents at Ashley’s age. The resentment they had has since subsided and Ashley’s parents now have good relationships with their parents.

The environment at which a person live also determine the growt of that person, for instance, Morgan’s father was abandoned at sixteen and forced to fend for himself. Her mom moved out at nineteen. They both are happy and supportive that Morgan is going to college and depending on them financially. They worked to make sure she was not “forced” into adulthood like they were. Her relationship with her parents is “fantastic.” She is much closer with her parents than they are with their parents.

My parents both moved out when they were teens, but they didn’t want me to go through the same rough transition. Nevertheless, at nineteen I chose to move to Florida and live with my grandmother, under the pretense that she and the rest of my family here would be supportive of me finishing my education. However, my family in Florida wants me to get a full-time job, or two if I have to, so I can live on my own. I was forced to move out of my grandmother’s house years ago and finish college on my own. Even though I say “on my own” I am still not able to afford rent independently. This has caused me to place less significance on financial independence in my definition of being an adult. My mother is my best friend so we are much closer than she is with her parents.

Methodological Reflection

I am under the opinion that people who were supported by their parents through college would be closer to their parents than people who were “forced” or “thrown into” adulthood. I started to probe more with each round of interviewing. Instead of just asking, “What kind of financial support do you get from your family, if any?” I probed deeper into whether the respondent had a job, student loans, or wanted more financial support from family. It was difficult not to probe with leading questions. I had a hard time refraining from putting words in the respondent’s mouths when trying to get them to elaborate.

Language Development and Teaching Oral Language

July 12, 2017

Contingency Tables and Odds In Excel

July 12, 2017

Best practices in logistic regression tends to describe the logistic regression in the concise as well as the simple way that tends to go give individuals the clarity that they require to offer without additional weight of high-level texts and longer. The practice involves a super primer on various aspects of statistics as well as research design that is masked logistic regression (Osborne, 2015).

The study involves the analyzing two variables that include “general health” and “drink soda”. It also looks at the association between the variables with an aim of testing if there is a connection between “general health” and “drink soda,” hypothesizing that one’s highest level of education may have an impact on one’s income. Explicitly, the really interested in evaluating the impact of soda on the general health of individuals. I the study identifies “general health” as the independent variable and “drink soda” as the dependent variable.


References

Osborne, J. W. (2015).  What is rotating in exploratory factor analysis? Practical Assessment, Research, and Evaluation, 20(2), 1-7.

Osborne, J. W., & Waters, E.  (2002).  Four assumptions of multiple regression that researchers should always test.  Practical Assessment, Research, and Evaluation, 8(2).  [Available online at http://pareonline.net/getvn.asp?v=8&n=2.

Is Bitcoin the Future of Cash Transfer?

July 10, 2017

Introduction

Bitcoin was introduced to the cryptocurrency market in the year 2009 (Burks 244). The currency has gained popularity due to a widespread acceptance by merchants and other consumers. However, there are issues surrounding its ability to be used into the long-term future due to uncertainties regarding its continued adoption and regulation.

This paper seeks to determine the origin of the currency, the usage of the currency, its reliability and sustainability in the future. The paper hypothesizes that there is value in the use of Bitcoins and that in the future, the value to consumers and investors will keep increasing.

This History Bitcoin and Rise in Popularity

Bitcoin is a cryptocurrency and is one of the many cryptocurrencies that have been introduced to the market. A cryptocurrency is a form of currency that is digital in nature in the sense that it uses bits as a store of value. Just like other digital currencies, more Bitcoin currencies are created by members who already have the currency. The members determine the value of the currency through their mining efforts.

The currency was introduced by Satoshi Nakamoto in the years 2009 (Naidoo 8). Nakamoto used the block chain technology to help create and manage the creation and use of the currency. The fault tolerant registry technology is used to ensure that transactions can be traced with time to guarantee the security of the value of currency.

 

 

Bitcoins Block Chain Technology

The users of Bitcoin are rewarded through mining. Mining is basically updating the transactions of members into the block chain system. The rewards come in the form of block rewards and transaction fees. The block rewards include the allocation of Bitcoins. However, the block rewards decrease by a half for every 210,000 of coins that are minted (Neilson et. al. 12). As the value keeps decreasing with time users will seek to become rewarded by a waiver of fees used to do transactions.

The currency system is generally reliable but is affected by occasional hackings when bugs are identified. For instance, a bug was detected 3 years ago led to users creating 184 million Bitcoins (Burks 245). However, the reliability of the system was noted and improvements were made to restore value and also ensure that similar hackings will not be experienced in the future.

Between the years 2011 and 2012, there was a widespread acceptance of the use of the currency for making payments. This was catalyzed by the formation of the Bitcoin foundation to standardize the operations of the system. As a result, 1,000 merchants accepted the use of Bitcoin as a form of payment (Redshaw 46).

The years between 2013 and 2017 experienced a sharp increase in the number of users and value of the currency. Between 2013 and 2015 there was an increase in the regulatory bodies such as the Financial Crimes and Enforcement Network of the USA. Consequently, 160,000 merchants and other institutions such as universities accepted the use of the cryptocurrency as a means of making payments (Naidoo 9). The value of the currency spiked from 450 dollars to a maximum of 2,500 to 3,000 in the year 2017. The table below summarizes the historical value that investors of the cryptocurrency have enjoyed over time.

Table of Historical Trends in Value Of Bitcoin

  End of year value (In dollars)
2009 0
2010 0.003
2011 2
2012 13
2013 266
2014 630
2015 504
2016 780
2017 (Current mid-year value) 2500

 

Advantages and Disadvantages of the Currency

Advantages

One of the main advantages of the use of the currency is its enhanced features that guarantee security and the ability to make anonymous payments. The personal details of users such as their address are not attached to the transactions and this enables them to make payments without being scrutinized (Redshaw 47).

The other advantage is that there are no third parties to transactions hence major savings can be made. For instance, the government is not involved hence the gains from increased value cannot be taxed. The use of peer to peer transaction eliminates the use of banks to make payments hence costs of making transfers are minimized.

The other advantage is the convenience of making payments from anywhere (Burks 246). As long as there is internet, a person can make payments from any region. This means that there is no need to go to banks to make payments for goods. Consequently, this will save the user time which can be spent doing other things.

Disadvantages

One of the main disadvantages of the use of the currency is the fact that not many stores accept the use of the Bitcoin. The currency is at its infant stage and the number of users is much fewer as compared to those of national currency. This means that a person who wishes to purchase goods will only obtain goods from the few available outlets that accept the currency (Neilson et. al. 13).

The other disadvantage is the possibility of losing currency. The use of the digital wallet is susceptible to the capacity of the computer to avoid crashing. If a computer crashes, then cryptocurrency data can be lost. This can lead to huge losses for people who have made high value investments in the currency.

Finally, the use of the currency makes people susceptible to variability in prices (Naidoo 10). The prices keep increasing and decreasing with time. People who buy property at a high price are forced to accept lower prices in order to make sales. Another aspect of variability is the constant deflation which is a disadvantage to people who do not own the currency.

Value of Bitcoin to the Average Consumer

The average consumer of the Bitcoin will benefit from the use of the currency from the conveniences the currency provides as opposed to using normal currency. The other value is in the increase in price of the currency. The cryptocurrency is designed in such a way that it will not decrease in selling price.

There is a limit of 21 million coins that can be mined and the fact that more merchants will keep on accepting the use of the currency means that future demand will increase (Burks 247). Following the laws of demand and supply, it is acceptable that the price will increase due to the increasing capacity to trade the currency with much more ease.

The value of the currency will also increase from the savings made from lower transaction costs. The users of the currency do not have to use intermediaries to make payments. This is because payments can be made directly between one user and another. The payments cost only a few pennies as opposed to high costs which banks and other financial institutions charge those people who either transmit money or make payments for goods and services.

The other convenience is the ease of trading. The conventional platform for trading requires people to physically access payment services in order to make payments. However, those who use the currency can transmit money as long as they have a reliable internet connection (neilsan et. al. 15).

Regulatory Issues surrounding the use of Bitcoins

The other issue with the use of the currency is whether it can be classified as a legal tender or not. Bitcoins are legal tender when they are only sold for a national currency. National governments face the difficulty of determining the point at which the transactions can be considered to be taxable.

There have been conflicting perspectives to the points at which the currency can be taxed in the USA (Naidoo 11). However, the national regulatory body in the country insists that when the currencies are transferred to national currencies, there is a need to file for taxation. The same applies to sending of currency.

In this regard people are required to register with the Money Services Bureau in order to legally perform their transactions. However, there are other transmitters of the currency who hold that sending Bitcoins should not be charged because it is a peer to peer transaction (Burks 248).

The other issues with the use of the currency concerns the securities and exchange commissions. The point at which a disclosure for undertaking the activities that should be reported to the commission is not clearly defined. Case in point is a scenario where an administrator for a website for Bitcoins in the USA was arrested for transferring coins to a user in exchange for a part ownership of the website (Twain 151). As this is not an ordinary transaction, the case could not be determined in a court of law.

The consequence is that there is grey area in the determination of whether people who perform these transactions are liable to register with the Securities Exchange Commissions of their countries or to continue operating with the perspective that they should not be governed by the capital market authorities (Naidoo 11).

In addition, the inability of central authorities to trace transactions is virtually impossible. This is because people who deal with this form of currency are not required to reveal their identities for them to perform transactions. In as much as the national authority might wish to enforce regulations, illegal activities will still be conducted as long as cryptocurrencies remain in use.

What I Have Learned

From the research, I learnt about the Bitcoins and the rationale behind their existence. I now understand that Bitcoins are cryptocurrencies that have value, just like national currencies. However, the main difference between the currencies and national currencies is the fact that they are not physical currencies as opposed to other forms of currencies that are tangible. The other difference is that their value has a mathematical basis as opposed to national currencies which are backed on physical commodities such as gold.

The other thing that I learnt is the fact that the currencies have many advantages that are not available to conventional currencies. Bitcoins give users the ability to make payments without having to reveal their details (Burks 248). This can enable people to make their financial history anonymous. Another advantage is the fact that people can save money through sending money directly to other people without the use of intermediaries.

Another lesson I leant is the fact that using Bitcoins have disadvantages too (Redshw 49). The main disadvantage arises from the uncertainties that surround their use. As at the moment, there is no central authority to scrutinize the activities behind the use of the currency. The safety of the currency is pegged on the capacity of users to verify transactions and the block chain technology. With these mechanisms in place, there has never been a guarantee to safety of assets held in this currency as historical occurrences show that the system can be hacked.

Another lesson I learnt is the valuation of the currency. The change in value over time is different from that of national currencies. National currencies are susceptible to the policies that governments take. For instance, governments can decide to increase money leading to devaluation of currency. This leads to a decrease in value over time. However, with these of Bitcoins, there is no fear of devaluation. As a matter of fact, the value of the currency will keep on increasing with time as the currency approaches a maximum limit of 21 million Bitcoins (Naidoo 11).

Conclusion

The findings of the research show that the currency has grown over time. The number of merchants that accept the use of the currency has increased constantly since its inception in the year 2009. Similarly, the value of the currency has increased steadily over time despite the fact that it has been fluctuating in short-term periods.

From the findings, it is clear that the future of the currency looks bright. Bitcoin uses a defined protocol in determining its value and more people will continue accepting its use. The value of the currency will continue to grow as the organization keeps improving technologies that seek to close the loopholes that enable hackers to commit frauds.

The use of the currency is set to be simplified. As at the moment, there are difficulties in obtaining the currency. For instance, a person who purchases the Bitcoins over the internet will have to wait for periods that can even reach two weeks. These waiting times will reduce as a result of improvements in the technologies that promote trading in the currency.

Another possible occurrence in the future is an increase in regulation of the currency. National governments will design more rules to govern the use of Bitcoins. The result will be a perceived reduction in the risks that are associated with the use of the currency. This will increase the acceptance of the use of the currency.

Finally, from the analysis of the historical value of the currency, it is clear that future value will still continue increasing. However, the increase is uncertain. It might be high as in the initial periods but could reduce due competition from other cryptocurrencies. The consensus is that the value will keep increasing.

The findings of this research mostly show that the Bitcoin is on the rise. The demand of the currency is set to keep increasing as its maximum amount of 21 million nears. The historical value of the currency supports the idea of constant growth. \the findings therefore support the hypothesis that there is value in Bitcoins and the value will keep increasing in the future.

 

 

 

 

 

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Works Cited

Burks, Christopher. “Bitcoin: Breaking Bad Or Breaking Barriers?.” NCJL & Tech.

On. 18 (2017): 244-409.

Naidoo, Prinesha. “Bitcoin: revolutionary currency, or pixie dust?.” Personal Finance

Newsletter 2017.434 (2017): 8-11.

Neilson, David, Sukhvinder Hara, and Ian Mitchell. “Bitcoin forensics: a

tutorial.” International Conference on Global Security, Safety, and Sustainability.  (Pg 12- 26) Springer, Cham, 2017.

Redshaw, Tom. “Bitcoin beyond ambivalence: Popular rationalization and Feenberg’s

technical politics.” Thesis Eleven 138.1 (2017): 46-64.

Twain, Mark. “5 Counting Bitcoin.” What Algorithms Want: Imagination in the Age of

Computing (2017): 151.

 

 

 

 

 

 

 

Link 1

https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=18+N.C.+J.L.+%26+Tech.+On.+244&srctype=smi&srcid=3B15&key=a30639ddc5baeb4b884c68f17125c210

Link 2

https://journals.co.za/content/journal/10520/EJC-5c8ed07ab

Link 3

 

Link 4

http://journals.sagepub.com/doi/abs/10.1177/0725513616689390

Link 5

https://books.google.co.ke/books?hl=en&lr=&id=TwJHDgAAQBAJ&oi=fnd&pg=PA151&dq=Twain,+Mark.+%225+Counting+Bitcoin.%22+What+Algorithms+Want:+Imagination+in+the+Age+of++Computing+(2017):+151.&ots=a3uQBiy6dg&sig=TThGk24nrQ3TlHsvad2OS5MEX2c&redir_esc=y#v=onepage&q&f=false

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ENTREPRENEURSHIP HEALTH ASSESSMENT

July 7, 2017

Introduction

The overall corporate health of an organization is important in enhancing the entrepreneurial activity of a company (Morris, Kuratko & Covin, 2011 Pg. 34). The corporate health of an organization is usually measured by determining the entrepreneurial intensity of an organization and the climate of entrepreneurship.  The purpose of this report is to assess the corporate entrepreneurial performance of an Australian high-tech medical equipment manufacturer company called ABC Company.  The company has been developing and exporting various products for the last 15 years. This paper will assess the corporate entrepreneurial performance of Australian ABC Company.

THEORETICAL CONCEPT

The state of entrepreneurial health in an organization is determined by a number of factors such as the entrepreneurship intensity (EI) and the climate for corporate entrepreneurship (Kessler & Bailey, 2007 Pg. 65). The concept of EI is measured using various dimensions that include the level of innovativeness, pro-activeness and risk taking. The corporate environment determines the corporate health of an organization based on the level of innovativeness it enhances. The climate for corporate entrepreneurship varies conceptually with the entrepreneurship intensity in that it refers to the overall corporate environment that enhances entrepreneurial activities such as innovation and availability of resources. The EI emphasizes on the number of times a company engages in entrepreneurial activities and the degree of entrepreneurial activities.

RESERCH METHODOLOGY

The data collection methods used in the study was the survey method. The survey method used a close-ended questionnaire that involved the use of the Likert questions scale (Brace, 2008 Pg. 76). The Likert scale consisted of a linear scale with varying degrees of acceptance. The linear scale ranged from the numbers 1-5 with 1 representing strongly agree response, 2 represented agree response, 3 represented neutral choice or uncertainty, 4 represented the disagreement option while the number 5 represented the strongly disagree option. The scale showed varying degrees of acceptance or rejection of a choice.  The Likert scales are used to capture data that cannot be measured by other instruments (Brace, 2008 Pg. 76). Surveys are validated instruments because they reflect the actual responses of the respondents and can be referred to validate a research.

The research involved the selection of a sample from the whole population. The population was the entire fraternity of the ABC pharmaceutical Company in Australia that had a total of 250 people. A sample was chosen from the population to enable the easy examination of the population views. A sample enables the researcher to save time and have an in-depth analysis of the variables. The sample chosen for the research included both males and females. The males were ten while the females were five for the CECI survey. In the EI survey, the respondents consisted of one CEO and five managers. The total respondents in EI survey were six.

 

DATA ANALYSIS AND DISCUSSION

The statistical techniques used in the analysis of data included the average and standard deviation. The average measures the most typical data that is obtained in the research. The standard deviation measures the variation of each variable from the mean (Zahra, Neubaum & Hayton, 2016 Pg. 67). A widely variable data may not be reliable in research.

Degree of entrepreneurship

Innovation average score 1.8+2.8+2.2+1.8/4=2.15
Proactiveness average score 1.7+2.5+2.0+2.5/4=2.175
Risk-taking average score 1.8+2.3+3.2+3.3/4=2.65
Total average of the degree of entrepreneurship scores 2.15+2.175+2.65=2.325

 

Frequency of entrepreneurship

Average Product frequency 3+3+3+3+3+6/6=3.5
Average Service frequency 0+0+0+0+0+3/6=0.5
Average Process frequency 0+0+0+0+0+3/6=0.5
Total average frequency of entrepreneurship score 3.5+0.5+0.5/3=1.5

 

Competitive aggressiveness scores

Average product competitive score 2.3+1.8/2=2.05
Average service competitive score 1.5+1.5/2=1.5
Average process competitive score 1.5+1.5/2=1.5
Total average aggressiveness score 2.05+1.5+1.5=1.64

 

Entrepreneurship Intensity

The entrepreneur intensity is measured using two dimensions that include the degree of entrepreneurship and the frequency of entrepreneurship. Other factors can be included such as autonomy and competitive aggressiveness (Gartner, 2004 Pg. 54). The average entrepreneurship score was calculated by finding the average score among the three EI dimensions (degree of entrepreneurship, frequency of entrepreneurship and competitive aggressiveness). The average EI score was 2.325+1.5+1.64/3=1.82

A strong Entrepreneurship Intensity score should show a strong positive correlation between the degree of entrepreneurship and the frequency of entrepreneurship (Sefalafala, 2012 Pg. 129). This is important because in some instances the degree of entrepreneurship may be high while on the contrary the frequency of entrepreneurship is low (Burns, 2013 Pg. 72). In such circumstances, the Entrepreneurship Intensity score is usually low. A correlation score between the two variables (degree of entrepreneurship and frequency of entrepreneurship) was calculated (Sharma, 2005 Pg. 29).

 Correlation results

Degree of entrepreneurship means                             Frequency of entrepreneurship means

Degree of entrepreneurship means Frequency of entrepreneurship means
2.15 3.5
2.175 0.5
2.65 0.5

 

Correlation results

  Column 1 Column 2
Column 1 1
Column 2 -0.53793 1

 

The correlation between the degree of entrepreneurship and the frequency of entrepreneurship is negatively correlated. The negative correlation showed that as the degree of entrepreneurship increased, the frequency of entrepreneurship decreased. The results were inconsistent with the high score of Entrepreneurial intensity that showed the respondents agreed that the company performed well in the EI parameters (Idowu, Capaldi & Das Gupta, 2013 Pg. 10).

Entrepreneurship grid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High        Continuous/incremental                                                        Revolutionary

 

Frequency of

Entrepreneurship                             Dynamic

(Number of events

 

 

 

Periodic/incremental                                                                              Periodic/Discontinuous

 

Low

Low              Degree of entrepreneurship                          High

(Risk-taking, innovativeness,   proactiveness)

 

Part B

Indices for CECI

The average score for the management support was (1.5+1.0+1.7+1.6+1.0+2.7+1.5+1.3+2.1+1.9+1.5+1.2+2.3+1.0+1.1+2.2+1.0/19)=1.4.

The average score for the work discretion component of corporate entrepreneurship assessment was (2.1+2.5+2.5+3.4+3.9+1.8+2.8+1.9+2.1+1.7/10)=2.47.

The average score for the rewards/reinforcements was (4.2+1.9+4.1+4.5+4.7+4.3/6=3.95 or approximately 4.0

The average score for the time availability component of corporate entrepreneurship assessment was (2.2+1.4+1.3+4.3+4.5+2.3/6=2.66 or 3.0

The average score for the component of organizational boundaries was (2.1+1.0+3.3+3.3+3.8+4.7+4.1/7)= 3.18

        The average score for the specific climate variables was (1.8+2.0+1.5+1.3+1.1+3.2+2.8+1.3+5+4.2+4.5+1.7+4.8+4.9+2.2+4.4+4.3+5+5+5+1.5+4.6+1.7+5+1.3+4.5+1.6+5+1.0+2.8/30=3.16

Correlations of the variables using their means

Management support Work discretion Rewards/reinforcements Time reliability Organizational boundaries Specific climate variables
1.4 2.47 4.0 3.0 3.18 3.16

 

(A)

Management support 1.4
Work discretion 2.47
Rewards/reinforcements 4.0

 

(B)

Time reliability 3.0
Organizational boundaries 3.18
Specific climate variables 3.16

 

 

Correlation results

1.4 3.0
2.47 3.18
4.0 3.16

 

  Column 1 Column 2
Column 1 1
Column 2 0.74722 1

 

The correlation between the two classes of variables was 0.7472.

Analysis of the different categories

Several questions deviate significantly from the mean. The questions had a standard deviation of 0.7 and above.

First category

Management support for corporate entrepreneurship

The management support for the corporate entrepreneurship focuses on the willingness of the top management to promote and facilitate entrepreneurial behavior in the organizations.  The management support measures the willingness of the top management to provide financial resources to facilitate projects even if some of them may fail (Burns, 2008 Pg. 78). The average score for the management support was 1.4. The score can be interpreted using the Likert scale to show that the respondents strongly agreed that the organization’s management supported the entrepreneurial activities in the ABC Company. Supporting the entrepreneurial activity is important in boosting the organizational performance.

Questions with a high standard deviation

The questions in the first category that had a high standard deviation of 0.7 and above were questions 6, 10 and 13 as shown in the attached sheet. The questions had a standard deviation of 0.8, 0.7 and 0.8 respectively. The large standard deviations showed that the results varied significantly from the mean. The significant variance from the mean can result from the widely varied opinions by the respondents regarding the particular questions. The variations can result if some of the respondents did not understand the questions asked properly.  The position and the level of experience among the respondents could also be an important factor that determined the variations in the responses.  The wide variations can lead to the reduced reliability of the scores.

Second category

Work Discretion

The average score for the work discretion component of corporate entrepreneurship assessment was (2.1+2.5+2.5+3.4+3.9+1.8+2.8+1.9+2.1+1.7/10)=2.47. The score showed that most respondents agreed that the ABC company top level management was committed to tolerate failure and provide effective decision-making latitude. The score also indicated that the management of the company was committed to provide freedom from the excessive oversight. The attitude contributes to the positive growth of entrepreneurial activity in the companies (Burns, 2013 Pg. 76).

Questions that deviated significantly from the mean (below and above)

The questions that deviated significantly from the mean score were questions 20, 26 and 28. The questions had a standard deviation of 0.7 each. The questions focused more on the personal experiences in the workplace that can have a wide range of variations. Personal experiences vary widely among different people and could be the reason for the large standard deviation of the questions.

Third category

Rewards/Reinforcements

The average score for the rewards/reinforcements was 4.0. The results show that the respondents disagreed that the company uses reward systems to encourage entrepreneurial activity in the company. The rewards/reinforcement category measures the understanding of the extent that managers reinforce the innovative or entrepreneurial behavior by linking the achievement and performance to the rewards. Generally research has largely supported the idea that rewards improve performance in an organization through motivation of the employees (McFadzean, O’Loughlin & Shaw, 2005 Pg. 65). Rewards encourage competition in the workplace thus boosting organizational performance.  The company does not reinforce the performance of the employees by rewarding them. The process can lead to the reduction in the performance of the employees.

Questions that deviated significantly from the mean (below and above)

The questions that deviated significantly from the mean were questions 30 and 31 with a standard deviation of 0.7 each. The large deviation could have come from widespread views of the workers regarding the reinforcement issue.

Fourth category

Time availability

The average score for the time availability component of corporate entrepreneurship assessment was 3.0. The score showed that the respondents were undecided about the response. The time availability component is used to measure the perception of the extent that the employees are able to pursue the innovative practices in support for the long-term and short-term goals (Boone, Kurtz & Qualman, 2011 Pg. 76). Time availability is important to enhance innovation that leads to the growth of the organizations.  If the employees have enough time, they can think about the problems and goals of an organization easily. The results show that the employees are not aware of whether or not they find free time to engage in other activities (Hornsby, Kuratko & Zahra, 2002 Pg. 12). Innovation that boosts performance can be compromised by the lack of enough time. Research needs more time and organizations should enhance the creation of free time.

Questions that deviated significantly from the mean (below and above)

The questions that had the greatest standard deviation in this category were questions 36, and 41 that had a standard deviation of 0.7 and 1.1 respectively. As in the previous cases, the large variations in responses came from the widespread opinions of the respondents in the questions asked.

Fifth category

Organizational boundaries

The average score for the component of organizational boundaries was 3.18. The score indicated that most respondents were not certain whether the organization boundaries that exist in their organization. The organizational boundaries component of corporate entrepreneurship is concerned with the organizational structure and the administrative mechanisms that are used to evaluate the ideas that are chosen and implemented. The organizational boundary component evaluates the extent that the employees perceive the existence of flexible organizational boundaries that can enhance entrepreneurial activity by facilitating the information flow between the internal and the external environments.  The innovative outcomes results from the treatment of innovation as a purposeful and structured process (Duane Ireland, Kuratko & Morris, 2006 Pg. 65). To achieve the organizational goals of innovation, uncertainty should be kept at the minimum level.  The organizational boundaries enhance the effective use of the resources that enhance innovation. The results of the analysis show that the company does not use the available resources effectively to enhance productivity through the innovation process.

Questions that deviated significantly from the mean (below and above)

The questions that showed increased deviation from the mean are questions 42, 44, 45, and 46. The questions had a standard deviation of 0.7, 1.2, 1.2, and 0.9 respectively.  The variations occurred due to the varied responses from the respondents.

Sixth category

Specific Climate Variables 

        The average score for the specific climate variables was 3.16. The score showed that many respondents were not sure whether the organization had effective measures that could create an innovative environment in the workplace. The results show that the corporate culture does not promote innovation and creativity.  The internal environment has much influence on the benefits and perceived costs that are associated with taking a personal risk and devoting time to the unproven approaches (Gibb, 2011 Pg. 21). The company is lacking an appropriate internal environment that encourages entrepreneurial activities.

Questions that deviated significantly from the mean (below and above)

The questions that deviated significantly from the mean are questions 49 (S.D 0.8), 50 (S.D 0.7), 54 (S.D 1.1), 55 (S.D 0.8), 58 (S.D 0.7), 60 (S.D 0.7), 63 (S.D 0.7), 71 (S.D 0.8), and 78 (S.D.1.1). The increased deviations in the questions were due to the varying opinions of the questions based on individual experiences that differ considerably.

CONCLUSION

The overall assessment of the entrepreneurial performance of the ABC Company showed that the company has high entrepreneurial intensity and a good climate for the corporate entrepreneurship. The main findings of the study showed that the company had a high entrepreneurship Intensity of 1.82. The results were measured by determining the average score for each dimension that affect the entrepreneurial Intensity (degree of entrepreneurship, frequency of entrepreneurship and the competitive aggressiveness). The EI depends much on the degree of entrepreneurship and the frequency of entrepreneurship. The correlation showed a negative correlation of -0.53793. The results of the corporate entrepreneurship assessment did not show good results because the respondents showed positive ratings on two categories (Management support for corporate entrepreneurship and Work Discretion). The other results indicated uncertainty or disagreement with various dimensions of corporate entrepreneurship assessment. The entrepreneurial health of the company needs more improvements.

 

 

 

 

 

 

References

Boone, L., Kurtz, D. and Qualman, E. (2011). Contemporary issues in business. 1st ed. Hoboken, NJ: Wiley Custom Learning Solutions.

Brace, I. (2008). Design of a Questionnaire: how to plan and write survey document for the effective market research. London, Kogan Page.

Burns, P. (2008). The Corporate entrepreneurship: The entrepreneurial organization. Basingstoke, Palgrave Macmillan.

Burns, P. (2013). Entrepreneurship in Corporatse: strategy in Big organizations. Houndmills, Basingstoke, Palgrave Macmillan. http://www.myilibrary.com?id=977525.

Duane Ireland, R., Kuratko, D. and Morris, M. (2006). An audit for the corporate entrepreneurship: innovation at various levels: part I. Journal of Business Strategy, 27(1), pp.10-17.

Gartner, W. B. (2004). Handbook of entrepreneurship dynamics: the business creation process. Thousand Oaks, Calif, Sage Publications.

Gibb, A. (2011). Concepts into practice: meeting the challenge of development of entrepreneurship educators around an innovative paradigm. International Journal of Entrepreneurial Behavior & Research, 17(2), pp.146-165.

Hornsby, J., Kuratko, D. and Zahra, S. (2002). Middle managers’ perception of the internal environment for corporate entrepreneurship: assessing a measurement scale. Journal of Business Venturing, 17(3), pp.253-273.

Idowu, S., Capaldi, N., Zu, L. and Das Gupta, A. (2013). Encyclopedia of corporate social responsibility. Berlin: Springer.

Kessler, E. H., & Bailey, J. R. (2007). Handbook of managerial and organizational wisdom. London, SAGE.

McFadzean, E., O’Loughlin, A. and Shaw, E., 2005. Corporate innovation and entrepreneurship part 1: the missing link. European journal of innovation management, 8(3), pp.350-372.

Morris, M. H., Kuratko, D. F., & Covin, J. G. (2011). Corporate entrepreneurship and innovation: development of entrepreneurial activities within organizations. Mason, OH, South-Western Cengage Learning.

Sefalafala, M. R. (2012). Investigating EI  and capability among the exporting firms of South Africa.

Sharma, A. K. (2005). Text book of regression and  correlation New Delhi, Discovery Publishing House.

Zahra, S. A., Neubaum, D. O., & Hayton, J. C. (2016). Handbook of corporate entrepreneurship research. Cheltenham, Gloucestershire, Edward Elgar Publishing.

 

 

 

 

CORPORATE VENTURE

July 7, 2017

Executive Summary

While basing on the theoretical concepts of corporate entrepreneurship and the company analysis of Atlassian, the present work creates a corporate venture plan for the company. Even though the company’s industry seems competitive, it offers attractive opportunities which it can utilize to increase its product portfolio. In addition, the plan is expected to take advantage of its established presence in the market and of its customer base, consequently creating competitive superiority. It is important to highlight that in the present hyperglobal competitive markets, corporate entrepreneurship is inevitable for firms to remain competitive and viable.

Table of Contents

Introduction 4

Theoretical concepts 4

Corporate venture plan 7

Conclusion 13

References 14

 

Corporate Venture

Introduction

In any firm, there are different types of plans, including staffing plans, sales plans and marketing plans, among others. Plans, according to Wadhw Phelps and Kotha (2016) can either be strategic or operational. In addition, they can also be a long or short term. Irrespective of their area, different plans have the drive of providing direction and organization for the accomplishment of any organization in a fast evolving, hypercompetitive global market. A business plan for a corporate venture is a text that describes all the applicable peripheral and internal elements that are involved in the launch of a corporate entrepreneurial venture. As pointed out by Light (2015) it involves an incorporation of several practical plans, which address long and short termed decisions. In this regard, the present work provides a corporate venture plan for Atlassian.

Atlassian is an enterprise software plans involved in the development of produces for software developers among other corporate individuals (Bass, 2016). It is well recognized for its subject in tracking application, Jira and for its functional team. It is worth mentioning that despite its popularity in project management and chat apps including HipChat, the company doesn’t run on sales quotas and end-of quarter discount. As a matter of fact, the company lacks a sales team. Originally an incongruity in the IT and ICT world, the company has gradually been labelled as a beacon for other business that are depending on the world of mouth to create huge market shares.

The way in which technology firms sell their software has been altered drastically in the past decades. The accessibility of open source replacements has made conventional brands and upcoming contestants in the game to provide more free trials and online promotion among other products. The move has, however worked to the advantage of the company since in 2015, it announced a sale of $320 million. In addition, in the same year, it made its initial public offering on the NASDAQ stock exchange that placed its market capitalization at $4.47 billion (Bass 2016).

Theoretical concepts

Different scholars have conventionally comprised the ground in order for firms to preserve and achieve competitive superiority, they should develop a justifiable competitive advantage (Wagner and Hollenbeck 2014). The cogency of the concept that competitive superiority is sustainable started to be examined towards the close of the previous century as the twofold forces of technological change and globalization amplified antagonism and eroded bases, in some cases long recognized one, for competitive advantage. As pointed out by Christensen (2013) individuals started to regard innovation as a characteristic feature of effective management practices and the ground that competitive superiority must be transformed substituted the ground that sustainable advantage is justifiable. The necessity for restitutions made many scholars and managers to deliberate how the entrepreneurial courses must be ratified in reputable organizations with the aim of achieving and preserving competitive advantage. Ultimately, the birth of Corporate Entrepreneurship.

According to Barrett and Weinstein (2015) corporate entrepreneurship purposes to reinstate established organizations, hence facilitates their survival and cheapness by using various innovation-based initiatives. Over the past decade, the latter’s scope has significantly stretched out. Some of the early authors often adopted abstruse sights of the sphere of corporate entrepreneurship in a way that what was considered entrepreneurial about the occurrence under study was either not explicitly defined or was not differentiated from other occurrences which were frequently related to innovation within organizations (Barrett & Weinstein, 2015). The insights of Burgers and Covin (2016) added the needed lucidity to the matter of corporate entrepreneurship sphere by backing that the latter should be viewed as including two sets of occurrences which include cooperate venturing that entails the creation or rather the birth of new businesses within current organization and strategic renewal that entails the transformation of organizations through the renewal of key ideas and concepts on which they are built upon. Corporate entrepreneurship was later on defined as the process where individuals in relation to an existing organization create a new organization or instigate renewal or innovation within the organization. Synonymous with the latter view, Dess et al (2003) claimed that corporate entrepreneurship entails both strategic renewal and corporate venturing but also recognized the concept of innovation, that is the introduction of an original idea or invention into a commercially serviceable form, which is not only new to the market but also has the capability of changing the competitive environment and the company.

The most current conceptualizations of corporate entrepreneurship have further extended its sphere. Several scholars suggest two categories of occurrences that represent the sphere of corporate entrepreneurship, including corporate venturing and strategic entrepreneurship (Morris, Kuratko & Covin, 2010). While corporate venturing refers to the similar new business phenomena that was mentioned in previous typologies, strategic entrepreneurship category of the latter refers to a range of concepts of the specific phenomena which include strategic renewal and according to Oakey (2015), Schumpeterian disruptive innovation among others. Furthermore, as pointed out by Morris, Kuratko and Covin (2010), strategic entrepreneurship under the corporate entrepreneurship construct both acknowledges the Schumpeterian disruptive innovation and the procreative that creates new businesses, which can be a characteristic in break-through innovation where companies struggle in the execution of new prospects when faced with improbabilities in different ways. To be specific, the strategic entrepreneurship class of the corporate entrepreneurship comprises a various initiatives that do not essentially include the addition of new businesses to the corporation. The well-known forms of strategic entrepreneurship, which include organizational rejuvenation among others, entail innovation, which is imperative for competitive advantage.

As the conceptualizations of the corporate entrepreneurship domain have increased throughout the years, as pointed out by Morris, Kuratko and Covin (2010), concern in related phenomena has paralleled the conjectural developments of the latter. The concepts include corporate venture capital and entrepreneurial orientation. Corporate venture capital as pointed out by Morris, Kuratko and Covin (2010), are used in financing internal entrepreneurial activities, however, they are more commonly used when one wants to get an equity interest in or ownership in a new venture that originates externally. Entrepreneurial orientation on the other hand drives specific acts of the corporate entrepreneurship and is commonly abstracted as either the simultaneous display of behaviors that reflect risk taking innovativeness and proactiveness or rather as the sphere of activity which entails the dimension of innovativeness, proactiveness, independence and competitive fierceness. Jointly, the previous annotations on the extensive scope of corporate entrepreneurship and its associated singularities suggest that the latter area is of scholarly inquiry which welcomes new insights from diverse standpoints on the matter of how established organizations might respond best to entrepreneurial necessities they face and the various opportunities that they are confronted with. It is nonetheless important to highlight that according to Morris, Kuratko and Covin (2010), corporate entrepreneurship could be a major source of competitive superiority.

Corporate venture plan

The opportunity

As highlighted by Digital Technologies (2017), Australia has a growing, multi-faceted computerized economy that has an e-prepared government, enterprises and purchasers and a proficient and inventive ICT R&D area. The demand for digital technologies and the creation of opportunities, including cyber security and data centres within the country is driven by its need for efficiency in service provision and the need for economic transition. Evidently, the company has succeeded in some of the ICT and IT domains. Nonetheless, with the present hyperglobal competition, the need for corporate venturing is inevitable. As the information technology space is overwhelmed by cloud revolution among other aspects, big players are pouring dollars in billions to not only increase their scale but also their attractiveness in the cloud space. For instance, in the financial year 2Q17, Oracle dedicated more than $1 billion in the construction of data centers (Shields, 2016).

As pointed out by Snir (2015) the next big prospect is focused on opening the public cloud infrastructure for organizations that are locked out of this phenomenon and who are missing out on the clear benefits of the infrastructure as a services model such as better economics, agility, leverage of resources and a pay per use model. The advantages of being able to penetrate into public cloud are well known. The application are numerous: among them is cloud bursting which helps companies that require more resources than what is available in small data centers. One important thing to note is for one to be successful during the early stages of investment in data centers, they have to acquire experience and expertise in the domain. According to the scholar, for companies that are partnering with big players in the IT sectors, characterized by a good track record, acquire a competitive advantage (Snir, 2015).

Exit strategy

Various customers acquire a majority of data centers as support activities. The acquirer herein will be required to divest non-core activities including retaining primary businesses such as cloud computing among others. Exit scenarios for the company and its shareholders include; regional subsidiary of data centers on a long term basis and merger with similar diversified service portfolio

Competition

Data center market place in Australia is dominated by Equinix Australia data centers where more than 700 companies reside in its colocation amenities while taking advantage of the digital ecosystems to foster their growth and create value. The facility hosts a growing electronic payment industries including network providers and banking. In addition, emerging services including online gaming while capitalizing on the interconnectedness deliver superior services and therefore the competition is expected to be stiff. Nonetheless, basing on its well established brand name and satisfied customers, the company can effectively compete with the latter.

Revenue model

The company will possess an expanded and distinguished twofold revenue model basing on its business activities that are vertically integrated. It will generate revenue via commission from the sale of its products.

Entry strategy

The company will endeavor into the data center domain through creating its own data center through increased capital expenditures. The company will therefore come second in line after Equinix.

Proposal

The company possesses a distinctive presence in the market and positioning owing to its vertically diversified business undertakings. In addition, it operates in one of the fastest emerging sectors. For it to reduce the market risk, the company will begin with, its customer base, which, according to Bass (2016), is largely promising,

For the company, in order to get a huge market share and improve its brand equity, it will entirely focus on growth capital. Consequently, this creates a striking investment prospect for the potential investors to fully take advantage of the opportunity by investing in a differentiated business model having an enormous national and international presence. Bass (2016) reported that the company wants to be highlighted in the USA stock exchange. Generally, the company will utilize the external capital funding for the creation of data centers.

Investment scenarios

  1. Invest fully in the plan with $3million in a 2 phased approach.

Product strategy and description

The strategy will base upon the creation of customized and standardized data centres for the assorted client base across the division. The specified formation of value-based products and platforms, forms the final goal. The company’s projected and forthcoming product collection will base on the mentioned strategies

Service Selection Description
Data center The company will construct cloud for the players in the present markets while taking caution not to break basic requirements including security, consistency and compliance. It will engage in innovation within established market places by supporting virtualized and cloud environments. It will also provide better-quality storage performance, scalability and palpable cost saving to its consumer base while replacing the initially used storage racks.

 

Competitive standing (SWOT)

The analysis of the company shows that one of their core strengths is that their products are highly configurable having a rest API that enables customers to use it with other products. Another strength entails their model of business that includes open sources and low pricing of the product. The company’s marketplace plan is also a chief success since individuals are able to see extreme downloads of paid plugins. In addition since a variety of companies are releasing plugins for JIRA, the company’s consumer base is expected to grow and consequently its revenue. Their products also sale on their own due to their quality and brand name. One of the company’s major weaknesses, however includes the fact that there is no vision for the future. For the past decade, the company has been doing the same set of products. It also has limited funds since for instance, big players like IBM are creating value for their monies due to the creation of hyperscale data centers that require investment in billions of dollars. Nonetheless, the markets offer opportunities such as internationalization, online partner sales, expandability. Threats include copying from competitor firms among others.

The company however has the opportunity of integrating more collaboration tools basing on the fact that they possess an efficient tech talent and a textbook subject management background. Nonetheless, basing on the fact that many companies are coming up with complete stories and that their breadth of products is very less, the company is under a threat. In addition, the biggest challenge of the company would be innovating at scale.

Small, flexibles start-ups according to the scholar usually pride themselves on being the disruptors to the bigger, more established disrupted.  With the company boasting of more than 30 thousand customers, technologists claim that it could easily coast on previous success and rely on having those organizations locked in for now. The big question however is, how do one innovate a company having more than 2000 workers? The company in the previous year spent $58 million on research and development. In addition, it increased its product portfolio by buying and building what it needs. It has also acquired tools as mentioned before like HipChat among others. Bigger purchases are on credit cards which highlights its potential of paying for acquisitions with stock among the benefits of an IPO. Generally, from the looks of things, the company, in the coming decades, is expected to register a positive growth.

Growth strategy

To create a sustainable advantage, we have to base on the company’s competitive superiority and create a plan to make them workable in the imminent or rather convert them into newer advantages

  • Unique services: in Australia, the company forms on of the top players in the IT sectors offering services for companies such as Microsoft among others.
  • Established brand: most of the customers relate to the brand due to their high quality and dependable services
  • Lack of a sales team: this implies that the company can direct the revenues to other development sectors
  • Highly competent team: the company selects the best staff while basing on qualification who are highly innovative

Barriers to entry

The creation of value based proposition. The cost benefit is expected to reduce with time, thus investing further in the creation of a unique and win-win relation with customers will offer barriers to new entrants.

Market Study

Integrated cost synergies centric data center

According to Cisco, on a global perspective, hyperscale data centers are expected to grow by the year 2020. They are expected to account for 50 percent of all the data centers. In short, they should amount to 84 and 86 percent of the public cloud server installed base and public cloud workloads respectively, which highlights why software companies are directing billions-dollar investment in the sector.

Design and development plan

Product’s design

Just as mentioned, the product is expected to replace the use of office space by providing cloud computing services to its users. The data centers are also expected to offer information on different aspects to consumers which can easily be assessed anywhere. The company’s services are expected to upsurge their scale and attractiveness in the cloud space and consequently generate huge revenue.

Marketing strategy

Since the latter relies on free trails and advertisement on websites basing on the fact that it lacks a sales team, the latter two will function as the marketing strategy. Herein, the customers are provided with the opportunity to enjoy the services freely within limited time. The company can target its customer base since they are easily reachable and expand gradually.

Development budget

When it comes to data centers, the dilemma includes leasing or buying a new data center. Nonetheless, since the company should have complete control over operating environment including access among others, it will construct its own data center. Cumulatively, mechanical, network connection, power, data center staffing for a 10 cabinet room includes $900,000 notwithstanding the maintenance fee which are approximately 5 percent per annum of the initial construction cost. The latter, according to the company’s customer base is small. The company needs to have at least 10 of such facilities. While basing the company’s last year’s budget where $58 million was dedicated towards innovation, funding the project would present a little strain on the budget. Nonetheless, prior to the construction of the data centres, the company should lease properties on a short term basis, while attracting the consumers of its new services. The response from the customer will determine whether the project should be considered as long term and therefore the need to acquire its own premises.

Operation plan management                                                                                                              The creation of the data centers prompts the need for an establishment of a new department where a manager will monitor the staff, oversee the on-site maintenance and equipment optimization.

Financials

The increase in revenue for the company will be as highlighted

Revenue and growth statistics (2017-2020)

 

 

 

 

Conclusion

As evident, even though the company seems to be performing well aspects such as competition and saturation in the near future make the corporate venture inevitable. The well laid plan highlights how the company can take advantage of the presenting market opportunity to increase its revenue, diversify its product portfolio and ultimately expand. One important thing however to consider is while its initial plan did not require a sales team, the latter might require one since as evident, its competition is stiff. In addition, most organizations need to be told on the benefits of data centers as opposed to the conventional method and therefore, the present work recommends that the organization designs a sales team for the plan.

 

 

 

 

 

 

 

 

 

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Benchmark Assignment—Laws and Regulations in Health Care

July 6, 2017

Healthcare Laws

  • Examples of significant acts in existence – AVA and HIPPA
  • ACA- Affordable Care Act (2010) was designed to avail equitable healthcare services for all.
  • HIPAA- Health Insurance Portability and Accountability Act (1996)
  • HIPAA enables people to pay for healthcare using their insurance card anywhere.
  • Regulations are always developed to enhance the existing laws, e.g, HIPAA Privacy Rule

Accreditation & Regulatory Agencies

  • What is accreditation? – approval that standards have been met.
  • What is regulation? – a set of rules that govern the practice
  • The role of these bodies is;
  • To ensure safe delivery of healthcare services
  • To ensure quality healthcare services are delivered to all.
  • These agencies have been quite effective in their roles.

Examples of Agencies

  • State Department of Health and Human Service (DHSS)
  • This is a regulatory agency that requires;
    • Mandatory accreditation
    • DHSS licensure
  • Joint Commission on Accreditation of Health Care Organizations (JCAHO)
  • This is an accreditation agency that doesn’t require mandatory accreditation.
  • It however bars facilities that are not accredited from receiving state & federal health monies (Medicaid, Medicare)

Organizational Healthcare Policies

  • Legal and regulatory requirements determine organization healthcare policies.
  • Policies change from time to time to fit to the regulations given.
  • Effective communication is very important in new policies development
  • Adopting new policies might also require changing systems, thus making the organizations a bit unstable.
  • The privacy rule- one example of a regulation that led to changes in organizational policies

Regulatory Issues

  • New CMS’s regulations have greatly affected healthcare industry
  • Medicare’s Electronic Prescribing (eRX) Incentive Program- professionals who don’t comply are penalized.
  • Physician Quality Reporting System (PQRS) physicians who don’t comply are penalized
  • Value-Based Payment Modifier Program- professionals who don’t comply are penalized.
  • Privacy Rule- all health service providers must change their information sharing policies to comply.

New Trends

  • Some of the trends in health care include;
    • Personal tracking devices
    • Patient-centered care
    • Increased demand for data
    • Data security
  • These trends will potentially reduce the expenses on health care and increase efficiency in health care service delivery.

 

 

References