APPLICATION OF PARAMETRIC PROGRAMMING TO TRANSPORTATION PROBLEM

August 18, 2017

Transportation problem model applied in establishing the optimal program for distributing products from one point to the other. It is further defined as a type of linear programming problem that may be solved using the mathematical simplex technique known as transportation method.  Transportation problem may be used in general assignments, transportation problems, distribution problems and scheduling problems (Vidale, 2009). Total transportation cost represents the objective function in the transportation problem. The program has constraints which are determined by demand and supply of the products destinations. The literature review focuses on improving understanding on various types of transportation problems explained using mathematical models, and application of parametric programming. The following are some of the problems to be discussed in the literature as explained by different scholars; delivery problems, truck loading problems, vehicle routing problem, bus scheduling problem, inventory routing problem (RBP), air traffic flow management, and cash transportation vehicle problem among others.

There has been tremendous modeling of operations research problems as generalized transportation problem (GTP) which is a function of  linear programming that involves application of parametric programming. Operator theory has been developed and utilized in calculating parametric programming. Araro, (2002) developed the operator theory for application of parametric programming to linear programming problem with a single or multiple functions. Arsham, (2007) outlines that,  the main objectives of transportation problems are minimization of shipping cost of goods from one destination to the other; and to maximize profit of the shipping units of goods to various destinations. In solving transportation problems to achieve optimal solutions, the following methods may be utilized; Vogel’s approximation method, least-cost method, and the Northwest-Corner method (Vidale, 2009).

Multi-criteria decision making is appropriate approach for finding optimal solutions in a complicated organizational environment. The multi objective nature is faced with various limitations due to hierarchical structures and imprecise parameters which makes it difficult to arrive at the best solution. An optimal solution in the transportation sector is measured through cost reduction while achieving high efficiency and delivery of quality services. Operator theory has been applied to solve transportation problems.

Concept of Parametric Programming

Parametric programming is a mathematical concept involving application of single and multiple functions. It is also defined as a mathematical programming used in performing optimization problems, where values are dependent on one or several parameters. Pandian, & Natarajan, (2010) classifies Parametric programming into different sub-classes, which are based on nature of F(X,O) and g(x, o); and presence of integers in the optimization problem. The sub-classes are as follows; multiparametric programming problem has more than one parameter; (multi) parametric mixed-integer programming problem contains integer variables. Parametric programming outlines the impact of change of values of the coefficients contained in the objective function of arriving at an optimal solution. Application of parametric programming helps in studying system behavioral change of system when subjected to various parameters within the set limits (Hoffmannn, & Wieland (2007). Also it helps in setting parameters to achieve an optimal solution and to prevent interference of the optimal solution structure.  Once the parametric program has been set up, the values or the parameters can be changed any time without altering the whole structure. The program operates using assigned values. These parametric programs can be incorporated in both normal and sub-programs.

Mathematical models for Transportation Problem and Parametric Programming

A Transportation Problem consisting of Uncertain Costs and Irregular Supplies

Transportation problem is regarded as an optimization problem. In uncertain random model, random variables are represented by supplies while uncertain variables are represented by costs and the demands. Lev, (2012) proposed on the operator theory of providing solutions to the current transportation problems. The mean cost approximation method was later proposed by Rachev, & Olkin, (2003) to be utilized in solving the model. During the same period, the efficient decomposition and linearization methods were proposed by Klingman, & Russel, (2000) for use in solving stochastic transportation problem.

It was discovered that there was no reliable investigated data for estimating a probability distribution in most cases, as it was difficult to acquire statistical reliable data of the parameters. Some of the parameters that were being investigated were unit costs of transportation in transportation problem. Rachev, & Olkin, (2003) founded the uncertain programming, which is currently used in solving uncertain problems. According to Klingman, & Russel, (2000), a transportation model that was characterized with uncertain costs and demands as well as uncertain programming model for establishing and using fixed charge transportation problem. According to Balas & Ivanescu, (2007) Solid transportation model enables supplier to predict the capacities to be distributed based on previous year’s production capacity regardless of uncertainty of costs of transportation and demands. It was suggested that supplier capacities of the supply should not be regarded as uncertain variables but rather should be expressed as random variables.

Standard simplex algorithm involves establishment of three slack variables for the first, second, and third constraints as well as 2 surplus variables for constraints 4 and 5. In this case the outlined inequalities are converted in to equalities. In addition, there is introduction of artificial variables to be utilized as basic variables for the set out constraints 4 and 5. According to Pandian, & Natarajan, (2010) an optimal solution is arrived through phase I and phase II. In arriving at a feasible solution, supply should exceed total demand. In case of total supply is equal to total demand, if any feasible solution must meet the inequality constraints as equalities. According to Finke, & Medova-Dempster (2011) a “dummy sink” may be created if supply is greater than demand, focused at minimizing the difference between the total supply and total demand. Rachev, & Olkin, (2003) assumed that every transportation problem is accompanied by a similar total demand and supply, resulting to emergence of standard form of the transportation problem. In case of oversupply an inventory-holding cost for units may be established in regard to goods that have not been shipped out. A balanced transportation problem emerges when total demand exceeds total supply, resulting to creation of a dummy source.

Problem Description

Mathematical models are formulated using probability theories in collaboration with uncertainty theories. The models are constructed using expected values and constraints functions (Held, Wolfe & Crowder (2007). Expected values are obtained from the objective function and confidence levels. The main goal of the problem is to formulate a transportation plan aimed at achieving minimum cost of transportation. It may be illustrated as follows; assuming there are m resources, n representing destinations in a transportation problem. Assuming cij to represent costs of unit transportation amounts from sources i to destinations j and xij the capacities transported from sources I to destinations j, i=1,2, m, j=1,2, n, respectively. Demands of destinations and capacity sources can be expressed as aj and bj, i=1,2, m, j= 1,2. n. the mathematical transportation problem can be expressed as follows;

Min ∑mi=1 ∑nj=1 CijXij

In current times, transportation programming need to be undertaken before the start of the activity, ass there may be emergence of various uncertainties such as traffic and bad weather. From the above mathematical model, cij and bj are referred as independent uncertain variables, while ai represent random variables, i=1,2, m,j=1,2, n

Transportation Problem with Mixed Constraints

Standard transportation model consists of mixed constraints which are equality and inequality constraints. It has only one additional origin and destination. Hoffmannn, & Wieland (2007) is of the view that a transportation problem aims at arriving at the most optimal way of responding to demand and demand points by utilizing capacities in the supply points. F.H Clarke (2000) outlined that transportation problem is focused towards ensuring cost minimization in shipping of goods from one point to another and to ensure the shipping locations operates within their capacities. Williams, (2000) argues that transportation problems have mixed constraints and there is no specific method of finding the best solution. The More-for-Less (MFL) paradox in TP is achieved at the point when large quantities of goods are shipped for less total cost, while maintaining the transportation costs as non-negative. One of the algorithms of solving TP with mixed constraints is heuristic algorithm. Pandian (2007) elaborated on new various new methods of solving TP with mixed constraints. Manager may take advantage of MFL solution to ship more goods at less cost.

Formulation of Transportation Problem with Mixed Constraints

Assuming that M is the sources of supplies and n is the various goods destinations. Assuming that cij is the cost of transporting a single unit of the good from source point i to the next destination denoted as j.  Assuming that ai is the quantity of goods present at source i. let bi represent the quantity to be supplied at destination j. hence it be expressed as follows; aj≥ 0 and bj≥ 0 for all i and j. the transportation problem with mixed constraints is expressed as follows;

Minimize Z= ∑Mi-1 nj=1 cij

Xij ≥ 0

This is a linear programming problem equation (LPP) containing m × n variable as well as m+ n constraints. Solving LPP is difficult to solve analytically if it’s large, but it’s easy to same using computer programming. Transportation problem characterized by equality constraints have equal constraints.

Use of modified VAM algorithm method for finding optimal solution

Adlakha, Kowalski, (2001) proposed the following steps are used in providing the best solution in solving transportation problem which consists of mixed constraints. The first step is to subtracting the two lowest units of the transportation cost to obtain the difference.  Step two involves establishing and working on the column or row that presents the greatest opportunity cost or difference. Also in finding the best solution for the problem, the problem should first be converted into LPP, and then be solved by use of simplex algorithm method in conjunction with computer programming (Rudin, 2003). Both hand calculation and computer programming should be utilized for verification purposes but the most recommended method is the computer programming as it accurate saves time, energy and is easy to apply.

Fuzzy Transportation Problem

Funny set theory may be used in solving the uncertainty of unit cost of transportation, supply and demand model. This fuzzy transportation problem (FTP) may be solved through application of parametric programming technique which is used in line with the Bellman-Zadeh criterion. Guddat, Guerra & Jongen, (2014) proposed that an optimal solution of solving the transportation problem may be achieved by use of fuzzy coefficients and an algorithm. Other methods proposed for solving transportation problem under fuzziness was the use of parametric approach. Other authors proposed Zadeh’s extension principle. Liu and Kao further proposed two fuzzy transportation problems one characterized by equality constraints while the other was characterized by inequality constraints.

Fuzzy zero point method was proposed in establishing an optimal solution in solving transportation problems, which involves assumption of transportation cost and demand which are then generalized as trapezoidal fuzzy numbers. Transportation problem may also be solved using interactive method. According to Gupta, Khanna, Puri, (2009) multi-objective programming problems may be solved using a two phase max-min fuzzy compromise approach for solving multi-programming problems which are utilized together with fuzzy coefficients. Parametric programming technique is used as the basis of using existing methods to solving the multi objective linear programming problems. In this case parametric programming techniques are converted into classical equivalent problem, interactive approaches, and goal programming technique (Nugent, Nollman & Rumi, 2006).

Developing an Optimal Solution

In order to achieve an optimal solution in solving transportation problems, all unused cells should be evaluated to establish whether a shift is positive in relation to reducing the total cost. If the shift is established as advantageous, the same process is repeated. Then the after evaluation of all cells and undertaking of all shifts, the transportation problem is solved. Cells may be evaluated using the stepping stone method, where unused cells are referred to as “water” while used cells are referred to as “stones” (Faigle, Kern & Still, 2002). VAM initial solution method has been seen to utilize the stepping stone method. There are alternate optimal solutions that are arrived at in evaluating of empty cells which are seen to yield the same cost as the existing allocation (Rudin, 2003). In case where the cells are optimally assigned, management must undertake an immediate decision of changing the non-transportation cost factors in coming up with a final shipping schedule.

Degeneracy

Degeneracy is a situation that emerges in transportation problem where the number of columns plus the number of rows minus one (m+n-1) exceed the number of filled cells. Degeneracy situation is either realized at the period of initial allocation or at the application of stepping stone method in arriving at an optimal solution. When degeneracy is established, adjustments need to be made in the matrix such as inserting of values in the empty cells to assist in evaluating the achieved solution (Williams, 2000).

In conclusion, use of parametric application to solving transportation problems facilitates achievement of efficiency and effectiveness in the transportation sector. Various methods should be utilized in arriving at optimal solution in solving transportation problems such as use of computer programming, simplex algorithms method, VAM method, Zadel extension principle, least-cost method, and the Northwest-Corner method. Managers may further consider use of transportation problem with maximization as a criterion. Mathematical models are useful in arriving at an optimal solution.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Adlakha, V., Kowalski, K. (2001). A heuristic Method for More-for-less in Distribution related

problems. International journal of mathematical Education in science and technology, 32, pp. 61-71.

Araro, S. (2002). A Paradox in an Indefinite quadratic transportation problem with mixed

constraints. International journal of management and systems, 18(3). Pp. 301-318.

Arsham, H. (2007). Postoptimality analyses of the transportation problem. Journal of the

operational research society, 43, pp. 121-139.

Balas, E., & Ivanescu, P. (2007). On the Generalized Transportation Problem. Management

Science, 11(1), pp. 188-202.

Faigle U., Kern W., & Still G. (2002). Algorithmic principles of mathematical programming,

Kluwer, Dor-drecht, 4, pp. 23-34.

Finke, G & Medova-Dempster. (2011). Approximation approach to combinational optimization problems. Research Report. Technical University of Nova Scotia.

F.H Clarke. (2000). Optimization and Nonsmooth Analysis. Wiley, New York, pp. 73-82.

Gupta, A., Khanna, S., Puri, M., (2009). Paradoxial situationa in transportation problems.

Journal of operations research. 34, pp. 37-49.

Guddat J., Guerra F. & Jongen H. (2014). Parametric Optimization: singularities, pathfollowing and jumps, Teuber and John Wiley, Chichester, pg. 67-73.

Hoffmannn, F., & Wieland w. (2007). The variation of the spectrum of a normal matrix. Duke

Mathematical Journal 20, pp. 127-130.

Klingman, D., & Russel, R. (2000). The Transportation problem with mixed constraints.

Operational Research Quartely. 25(3), 447-455.

Lev, B. (2012). A non iterative algorithm for tridiagonal transportation problems and its

generalization. Journal of operations research society of America, 20, pp. 109-125.

  1. Held, P. Wolfe and P. Crowder. (2007). Validation of sungradient of the spectrum of a

normal matrix. Duke Mathematical Journal, 20, pp. 37-49.

Nugent .C .E, Nollman T & Rumi. (2006). An experimental comparison of Techniques for the

Assignment of Facilities to Location. Operations research, pp. 150-173

Pandian, P., Natarajan, G. (2010). An optimal more-for-less solution to fuzzy transportation

problems with mixed constraints. Applied mathematical sciences, 4, pp. 1405-1415.

Pandian, P., Natarajan, G. (2010). A new approach for solving transportation problems with

mixed constraints. Journal of physical sciences, 14, pp. 53-61.

Rudin, W. (2003). Principles of Mathematical Analysis, 3rd edition, McGraw hill, pp. 45-57.

Rachev, S., & Olkin, L. (2003). Mass transportation Problems with Capacity Constraints.

Journal of Applied Probability, 36(2), 433-445.

Vidale, M. (2009). A Graphical Solution of the Transportation Problem. Operations Research,

4(2), pp. 193-203.

Williams, A. (2000). A Treatment of Transportation Problem with Decomposition. Journal of

Applied Mathematics. Pp. 35-48.

Poetry Explication

August 17, 2017

Poets use their poetry prowess to pass across a message that can only be deciphered when there is thorough explication of the poem. A person who is unable to explicate the poem may not be able to get the actual meaning and intent of the poem and this may make him not get the message of the said poem in the expected manner. Aspects of explication include identifying the persona, the tone of the persona, the message being passed across among other issues. An explication of this poem looks at the actual story being told by the poem, the personas in the poem, defines difficult words used in the poem, the figurative language used and the rhyme scheme of the poem.

The Naming of Parts by Henry Reed is a poem that tells the story of what the recruits go through in their training or in the battle field. The story being postulated here is of the drilling and the monotonous life of soldiers that is experienced on a daily basis. It is used to give the image of what soldiers go through in their daily lives since they have to receive commands from their seniors and obey them to the latter irrespective of what they may feel is right or wrong. The carefully chosen words of this poem all point to a well thought out process of what goes on in the normal life of a soldier who is forced by circumstances to behave more or less like a zombie since there is nothing that he can do on his own without taking commands from above.

There are two personas in this poem. One of the instructor who gives orders on what should be done while the second persona is that of the recruits who are to take the orders the way they are given without questioning. The voice of the instructor is the one that at appears at the first lines of each stanza while that of the recruit appears from the middle part of each stanza to the end of each stanza. An example can be given using the first stanza where the command of the instructor can be seen from the first line to the forth line. The instructor’s commanding voice can be seen thus:

“Today we are naming of parts;

yesterday; we had daily cleaning.

And tomorrow morning, ….. (Reed,n.d)

What can be seen here is that the instructor is merely barking orders to the recruits. The recruits’ voice can be heard from the fourth line of the first stanza. The recruits repeat what the instructor says:

“But today we have naming of part;

Japonica, glistens like coral. (Reed, n.d)

The difficult words used in this poem include sling swivel, which means the metal loops on the gun barrel on which the strap that is used to hold the gun are affixed; piling swivel which refers to the cap that is to be found towards the end of the barrel. Breech refers to the part of the gun that is found near the bore. Japonica is a word used to show that whatever that is being talked about has its origins in Japan. The use of these difficult words is simply meant to show the various parts of the gun which the reader may not be aware of. Since the poem is about guns, the vocabulary used must be in tandem with all things that are related to guns.

Among the figurative language used in this poem include personification, allusion, compare and contrast and repetition. Each figurative language has some significance which is attached to it. Looking at personification, the poet says “branches hold in their gardens their silent (Reed, n.d).” It should be seen that branches of trees do not hold onto anything since they do not have hands. However, the personification is meant to show that branches of the trees do not move in a manner to make noise that would attract the enemy. That is why they are said to be holding onto each other. Another example of personification is “Blossoms use their finger” (Reed, n.d) We know very well that blossoms do not have fingers bust what is being referred to here is that the blossoms try to come together since they are weak for them not to be destroyed. Allusion can be seen when then poet says “Japonica, connected back to Japan, gun Parts”  (Reed, n.d)Then allusion here is that Japan played a significant role in the Second World War and that is why there is an allusion of Japan in this poem. It is what played a significant role in the world crisis that gave birth to this war. That is why there is this term Japonica being used in reference to Japan.

Comparison and contrast is used in this poem when the poet tries to make a comparison between bees and birds; and at the same time contrasts them with the lives of the soldiers. He says that the bees and birds are free to move as they want and they can roam from one point to another without any form of restrictions. The same does not happen to the soldiers who are stuck in a rut. They have to keep on hearing the same thing every day as they are supposed to go through drills every day. Repetition is used severally in the poem. Examples of repetition include “today, today’ (Reed, n.d); and “which in your case you have not got… which in your case you have not got” (Reed, n.d). Another repetition is seen where the poet says “they call it easing the Spring…they call it easing the Spring” (Reed, n.d).What this repetition is meant to show is the emphasis that the poet is trying to put across so that the reader can see the point that is being emphasized.

When it comes to the meter, it can be seen that this poem is a free style poem which has no meter. The starting and the ending is not uniform and perhaps this is deliberately meant to show that this is the type of life that soldiers would wish to lead. This element of them being drilled such they carry out most of their activities like zombies irritates them to an extent that they would like to get some freedom like other people.

Looking at the title of the poem, one is able to see that the main task that is carried in this poem is the naming of parts and nothing else. It, therefore, means that the poet has not digressed for his topic but rather, he has stuck to the title of his poem. The language used is simple and straight forward. It is not sarcastic or colloquial such that it is not understandable. That is not the case in this poem. It is straight forward and direct to the point.

 

Reference

Reed, H. (n.d) Naming of The Parts

 

 

 

 

 

A Case Study on Bone Tissue Structure and Repair and Muscle

August 16, 2017

 

 

 

 

 

 

Case Study

Student’s Name

Institution Affiliation

 

 

 

 

 

 

 

 

 

 

Case Study

Question One

An example of a way that bones are categorized is by their shape. In what ways would you classify the fractured bones in the hand of Alice?

The fractured bone was on the left side of the hands of Alice. The fractured bone was humerus. This kind of bone is classified as a long bone. The other type of bone that may have been damaged is the occipital bone that is usually being categorized as a flat bone (Bones & Rossiter, 2016). Lastly, the other bone found on the arm the lumbar vertebral body is categorized as an irregular bone.

Question Two

The body of Mrs. Smith has a fractured vertebra. What kind of the bone tissue is composed of the majority of the vertebral body? Elaborate the function and structure of this kind of bone

The outside part of the body is composed of a fractured vertebra. The purposes of the vertebral body are to offer support to the mass of the body as well as shock absorption that may be otherwise dangerous to the other part of the body more so, the spinal cord (Bones & Rossiter, 2016).

Question Three

Within days after a fracture, a “soft callus” of fibrocartilage forms. What fibers are found in this type of cartilage? Identify the cells required for fibrocartilaginous callus formation and list their functions.

 

Collagen fibers are located in the fibrocartilage. However, this cartilage contains chondroblast and fibroblast that do exist in the constitution of soft callus of the fibrocartilage (Bones & Rossiter, 2016). Nevertheless, the fibroblasts build up the fibrocartilage to start rejecting or neglecting the bone, while the other cartilage which is chondroblast build up a new ossification regions for chondrocytes (Bones & Rossiter, 2016).

Duchenne Muscular Dystrophy

The other name of Duchenne muscular dystrophy is called Pseudohypertrophic muscular dystrophy. This type of disease is an inherited one whose signs and symptoms is composed of quick progressive weakness in muscles (Emery, Muntoni, & Quinlivan, 2015). This weakness starts in the pelvis and legs and gradually infect the whole body.

This kind of disease is associated with boys. The issue is this particular gene known as the dystrophin gene is known to lead to a flaw in a single protein or dystrophin that is essential in the fibers of the muscle. Most people who are affected acquire symptoms such as difficulty in rising, jumping, running, and walking on the floor at the age between one to three years (Emery, Muntoni, & Quinlivan, 2015). Besides, these individuals cannot move as fast or a longer distance as other people and would usually fall down.

However, symptoms associated with this disease include mental retardation, fatigue, skeletal disfigurement in the back and chest, and deformities muscle that includes contractures of the legs and heels and pseudohypertrophy of the muscle of the calf (Emery, Muntoni, & Quinlivan, 2015). The patients of this disease are not able to walk by the age of eight and eleven and would shorten their life expectancy because of the severity of the infection.

The diagnosis of this disease is performed by a physician by a method of a test of physical evaluation diagnosis. During the test, the medical practitioner has a review of the parental histories and other physical factors (Emery, Muntoni, & Quinlivan, 2015). When the infection is identified, the patient would be put under medication through physical therapy and other painkillers to suppress the symptoms. The disease has no cure and the patient has to live with it for the rest of their lives.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Bones, A. M., & Rossiter, J. T. (2016). The myrosinase‐glucosinolate system, its   organisation and biochemistry. Physiologia Plantarum, 97(1), 194-208.

Emery, A. E., Muntoni, F., & Quinlivan, R. C. (2015). Duchenne muscular dystrophy.       OUP Oxford.

 

 

 

 

 

 

 

MANAGEMENT AND ORGANIZATION BEHAVIOR

August 16, 2017

Introduction

Whereas there are divergent views on the subject of leadership and management, the unanimous agreement among leadership experts like Myatt (2013) is that the interaction between managers/leaders and their subjects cannot exist in a vacuum. To fill this void, several management concepts have been postulated over the years ranging from Contingency Theory and Systems Theory, to others such as Trait theory as well as Theory X and Theory Y. for example, Theory X and Y deals with how leaders perceive their employees’ motivation to work, and how this perception determines how such managers apply power and authority at the workplace. For instance, managers who support theory X believe that workers are naturally unmotivated and hate their jobs. Thus, such managers prefer an authoritarian style of leadership as they believe workers must be pushed to perform.  As we shall see later in the essay, Amazon’s employees are monitored very closely and strictly because their leaders believe they must be pushed to achieve results. On the other hand, managers who support theory Y believe that workers are happy, self-motivated and creative, and that such employees enjoy greater responsibility. Such types of managers allow workers to work freely without interference.

According to Miles (2012), each of these leadership philosophies are applicable under unique set of circumstances and cannot therefore be contrasted against one another. Instead, the focus should be on using the relevant facets of each to design a better overall management philosophy that is relevant in the highly dynamic society we live in.

 

One such attempt at understanding organizations and how people within them interact with each other was postulated by Morgan (1997), in his portrayal of organizations as political systems. In this regard, the Author posits that the levels and nature of political activities in organizations are determined by the kind of political rule that exists therein (Evans, Hassard & Hyde 2013). Using Morgan’s model, this paper argues that Amazon is founded upon the political typology of management. Amazon.com, the largest E-commerce company is headquartered in the United States. Consequently, the analysis is based on an article published in the New York Times that offers an insight of what it means to be an employee at Amazon. Based on the personal anecdotes given by past and present workers at the firm, the essay will confirm the existence of all the six varieties of political rule as discussed in the subsequent paragraphs.

 

Autocracy

This refers to a situation where an individual or a small group of people within an organization hold absolute power (Grey 1999). This is made possible by the fact that the individual or group controls all the critical resources, holds considerable ownership rights, or is favored by the organization’s traditions. Morgan’s view on the autocratic model is supported by other authors like Vellnagel (2013 p.5) who argues that autocratic or authoritarian leaders are known to employ the ‘use of charisma’ as well as other personal privileges. He adds that Autocratic leaders view their positions as divine and therefore beyond reproach. As can be noted from the article on Amazon, there are certain incidences that point to an autocratic leadership model. For example, the company reportedly fires workers who fail to adapt to the company’s corporate philosophy every year in what they term “purposeful Darwinism.” These lay-offs are ruthless as they target even those who suffer medical afflictions without giving them time to recover (Kantor & Steitfeld 2015).

 

Similarly, autocracy manifests itself in the fact that the founder, Jeff Bezos, still runs the company and dictates the management philosophy despite being a huge publicly traded company worth $250 billion. Based on one account from a former employee, Bezos enforces his “Articles of Faith” philosophy ruthlessly as he considers them a moral benchmark against which everything is to be measured. Moreover, the company’s leadership exercise tight control on the flow of information by authorizing only a few senior managers to speak to the media meaning there is little room for freedom of expression with people outside the company. Perhaps the most conspicuous evidence of autocracy was witnessed from the incident where workers packing boxes were made to work in 100 degree heat without air conditioning and this continued even as some of them passed out. The situation only improved when the story received media coverage. In the last paragraph of the article, it is apparent that Amazon notifies its candidates during job interviews that they either fit the profile or they don’t (Kantor & Steitfeld 2015). In other words, they have to embrace the Amazon way or leave, a pointer to the blatant autocracy.

 

Bureaucracy

As noted by (Merz 2013 p.3) while discussing Max Weber’s theory of bureaucracy, the bureaucratic organization of activities is the hallmark of modernity, a view reiterated by Morgan when he posits that bureaucracies are based upon rational principles. In addition, bureaucracy refers to the leadership exercised through based upon a set of written words with little room for flexibility. Just like autocracy, bureaucracy is manifested in the management of Amazon based on some of the existing guidelines for employees. The first indication of bureaucracy is seen in the fact that the flow of information is extremely controlled with only a handful of senior management staff authorized to speak on behalf of the company meaning one has to follows a lot of formalities to get any information about the company. Moreover, Amazon’s bureaucracy can be seen in the ‘leadership principles’ drafted by the founder which dictates how employees should act. Whereas other technology-based companies allow some element of flexibility in their workplace, Amazon drills its rules to both existing and potential workers meaning there is little room for flexibility.

 

Another area where bureaucracy is evident comes from the company’s performance improvement plan-a program aimed at putting non-productive workers on notice by administering close supervision to their daily tasks (Kantor & Steitfeld 2015). Whereas this is a valuable tool for monitoring or increasing productivity, the model used at Amazon is rather inflexible as workers are punished indiscriminately without taking time to determine the causes of reduced productivity. As can be noted from the accounts of various workers who have fallen victim to the program, failure to meet set targets is most caused by unavoidable circumstances such as ill health (Kantor & Steitfeld 2015). Whereas the company is aware of this glitch in their program, it is apparent that senior management has shown little willingness to adjust their performance management policies to consider these factors.

 

Technocracy

In this regard, Morgan posits that authority is exercised through application of knowledge, power of experts, as well as the capacity to generate solutions for common challenges. Other experts like Olson (2015) concur with this view arguing that leadership under technocracy is appointed based on specialized knowledge or expertise. Based on the Amazon corporate philosophy, this is perhaps the most conspicuous mode of political rule. For instance, the company’s founder relies on data-driven type of management. In this regard, Jeff Bezos has extreme confidence in the power of metrics, and this philosophy was influenced by his earlier stint at D. E. Shaw in the early 90s whereby the use of algorithms disrupted what was being used by Wall Street at the time. In addition, the application of technocracy to generate solutions can be seen in the company’s policy that requires all workers to exhibit “ownership” my mastering every aspect of their business. Amazon’s employees are to explore issues deeply and come up with creative knowledge-based solutions that will help solve customers’ problems (Kantor & Steitfeld 2015).

 

One example of this can be seen as the company is leveraging its technological edge to come up with new innovative ways to deliver to their customer i.e. package delivery by drone and automated resupply of toilet paper. These ideas are all generated by the company’s employees as part of what is expected of them. Based on the account of other workers, Amazon has been rather fast in responding to changes which everybody else in the workplace is just beginning to experience. As summarized by a former personnel officer at the company, data allows the company to continuously monitor individual performance. In this regard, most of the past and present employees at Amazon unanimously agree that the company has the technological edge and represents where others would like to be in the future.

 

Co-determination

This refers to a type of political rule that involves opposing parties that come together to jointly manage projects that are of mutual interests (Grey 1999). In this regard, each party draws upon a specified power base. Whereas the senior authority or power at Amazon remains largely centralized, there are components of the organization, especially at the lower levels, where the concept of co-determination is evident as can be seen from the accounts of the past and present employees. For example, the Anytime Feedback Tool is a widget that exists in the company directory with the objective of making it possible for workers to interact with the management team about the progress, or lack thereof of their colleagues (Kantor & Steitfeld 2015). While these tools can be used by a section of employees to settle personal scores with their colleagues, it is also a valuable tool as it creates two centers of authority in the workplace. Essentially, the employees from opposing teams can decide to unite to execute projects of mutual interests as opposed to having a go at one another.

 

Direct democracy

In this mode of political rule, everyone within the organization has the right to participate in making decisions at any one given time regardless of their title or job designation (Morgan 1997). More importantly, Kane and Patapan (2012) believe this type of political rule encourages workers to take initiative and self-organize as opposed to waiting for instructions on even trivial matters. As can be noted from the example of Amazon, there are several instances that demonstrate the existence of direct democracy. For example, it is Amazon’s policy to allow workers of all cadres to tear into each other’s ideas during meetings without fear of victimization because the company’s founder is a strong believer that this free exchange between workers breeds creativity (Kantor & Steitfeld 2015). As noted by experts, direct democracy is critical in technology based companies because strict and conservative atmosphere stifles creativity.

 

Thus, Amazon allows even the junior workers to make major contributions as can be seen from the company’s development of the delivery-by-drone concept which it made public in the year 2013. Essentially, this project was reportedly a brainchild of one of the lower cadre engineers called Daniel Buchmueller (Kantor & Steitfeld 2015). Another example of direct democracy at Amazon can be seen from the company’s use of the Anytime Feedback Tool. Whereas employees whose details are sent to the management team may not be aware of who recommended or criticized their work ethic, it offers every single employee an opportunity to speak their minds about issues or people freely. This tool may also be handy in giving candid feedback about the work environment or conditions to the management.

 

As mentioned earlier, Amazon employs a form of meritocracy that involves the competition of workers’ ideas and the best of these win. During this time, workers are encouraged to challenge one another freely. This fosters the feeling of fairness as the workers believe anyone of them has a chance to advance since promotions and other forms of rewards are given on the basis of merit with no favoritism. More importantly, employees are accorded the opportunity to defend their colleagues if they feel such workers are being reprimanded unfairly. As can be noted from the article, the various line supervisors are given time to prepare their case which they can then use to defend members of their teams that are just about to get laid off (Kantor & Steitfeld 2015).

 

Conclusion

This essay sought to demonstrate that Amazon, through its founder Jeff Bezos employs the various mode of political rule in running the world’s largest E-commence business. My analysis was based on an article carried in the New York Times detailing the experiences of both past and present workers at the company. Consequently it emerged that Amazon uses Autocracy, bureaucracy, co-determination, technocracy as well as direct democracy in various facets of the organization. With regard to autocracy, it is apparent that the company’s employees are forbidden from speaking to the media apart from a select few. This show just how closely Amazon controls information coming out of the company.

 

Similarly, the workers’ confessions in the article suggest some level of bureaucracy in the management cycles. For example, the company has certain rules, some of which are obviously counterproductive going by the high number of people leaving the company. However, it is clear that the company is unwilling to change these rules even in the face of these massive turnovers. Besides bureaucracy, there are traces of co-determination at the company as can be seen from the company’s policy that makes it possible for workers to work mutually towards their common interests rather than continue to work at cross purposes.

 

The most conspicuous mode of political rule used at Amazon is technocracy and this is evident in several scenarios. For example, all Amazon employees are expected to master the intricate details of their work as well as the organization as the founder believes the knowledge enables them to solve customers’ problems better. More importantly, the company relies on performance metrics to determine the fate of their employees meaning data forms a big part of the operational philosophy. Overall, Amazon’s believes is hiring and training the very best as they believe only those with specialized knowledge have the capacity to steer the company to the direction intended by the owner and founder.

 

 

 

 

Reference list

Myatt, M 2013 October 24, “8 Ways to spot great leadership”, Forbes. Available at https://www.forbes.com/sites/mikemyatt/2013/10/24/8-ways-to-spot-great-leadership/#47658cbc4c6c

Miles, JA 2012, Management and organization theory: a jossey-bass reader, John Wiley & Sons: New Jersey.

Evans, E, Hassard, J and Hyde, P 2013, Critical Leadership: leader-follower dynamics in a public organization”, Routledge: New York.

Vellnagel, CC 2013, Leadership across high- and low-context cultures, GRIN Verlag: Munich.

Merz, F 2013, Max weber ́s theory of bureaucracy and its negative consequences, GRIN Verlag: Munich.

Kantor, J & Streitfeld, D 2015 August 15, “Inside Amazon: wrestling big ideas in a bruising workplace”, New York Times. Available at https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html?_r=0

Olson, RG 2015, Scientism and technocracy in the twentieth century: the legacy of scientific management, Lexington Books: Maryland

Kane, J & Patapan, H 2012, The democratic leader: how democracy defines, empowers and limits its leaders, OUP: Oxford

Grey, C 1999, ‘We Are All Managers Now’; ‘We Always Were’: On the Development and Demise of Management’, Journal of Management Studies. Vol. 36, (5), 561–585.

 

Marketing Management in Cultural organisations

August 16, 2017

Cultural organizations preserve the national and international heritage and are thus indispensable elements of the society. Nevertheless, the institutions face the danger of demise due to a fading market influence that is compounded by customer ignorance or disinterest in cultural consumption. Cultural institutions are also under-resourced making it more difficult to adopt sufficiently efficient marketing strategies to attract a significant customer base for their products. While community support, government subsidies, and donor funding contribute to the revenue of these institutions, these sources are not adequate to guarantee the perpetuity of the organizations. Cultural heritage centres, therefore, should adopt marketing strategies that promote their content and boost their visibility in the market. The organizations already offer such services as education for high learning institutions to boost their earned revenue. Harnessing the potential of the dynamic market is imperative for continued service of the cultural organizations. The exploitation of the market share includes approaches ranging form mixed service provision to the adoption of digital advertising technology to reach more consumers. While these approaches are not exhaustive of the mainstream marketing strategies, they represent the most fundamental initial steps for cultural marketing managers to revamp their competitiveness against other rivals particularly from the creative arts.

 

 

 

 

 

Introduction

Archaeological sites, galleries, performing arts institutions, museums, and exhibition centres in both private and public domains have had to contend with mounting pressure to revamp business efficacy and customer satisfaction. The suggested solutions for the survival of such entities include the processes of managerialisation and privatisation inter alia. This occurs amidst concerns of such critical organizational requirements as accountability, production oversight, and financial management in an unpredictably dynamic business environment. The phenomenon of the financial crisis has compounded the conflicts and rendered challenging the survival of arts institutions. In such a context, the actual nature of these institutions rises to the debate concerning the organizational services (contents and public interaction) that depend on the availability of resources and management. The debates form the basis of a sustainable platform for the discourse between diverse and occasionally conflicting perspectives in arts management. The patterns and potential consequences of diverse changes transpiring in management are necessary for such debates. Moreover, a concentration on global comparison or advancement is necessary with the idea of bringing distinct viewpoints from different disciplines on the engrossing yet underrepresented area of heritage management. Most importantly, the management of marketing processes in the arts is an issue of contemporary focus owing to the fragile industry nature and business environment dynamics. This report focuses on marketing management strategies in cultural organizations under the arts industry to illuminate the challenges and solutions to existing problems as well as make recommendations for future practices that could enhance institutional perpetuity.

 

 

Overview of Cultural Organizations

Cultural organizations stand unprecedented primacy in the history of societies due to their role in preserving national and international heritage. While the national importance of a vast majority of other organizations is based on their contribution to economic growth, the significance of cultural organizations stems from its intrinsic value that researchers assert to be a fundamental component of community development, quality of life, and cohesiveness (Ciccarelli & Copp 2001; McCarthy, Ondaatje, Zakaras & Brooks 2005; Putnam & Feldstein 2003). These factors are elementary to economic development thus underscoring the position of cultural organizations in the society.

The role of cultural heritage organizations differs fundamentally from that of creative organizations whose archetypal mission is oriented principally towards presenting and fostering quality artworks. In contrast, the explicit purpose of cultural heritage organizations is built on the expressive forms of different kinds to propel instrumental objectives including youth empowerment and education, delivery of human service, community rejuvenation, and economic advancement. These objectives hold for all types of cultural organizations (McCarthy, Ondaatje, Zakaras & Brooks 2005). This argument is buttressed by the mission statements of different cultural organizations that converge towards offering human service. For instance, Art Share Los Angeles’s mission is to serve the people of Los Angeles by serving the language and literacy needs of the youth among other approaches to human empowerment (Rosenstein 2006). Most notably, cultural organizations serve the purpose of preserving native culture in the society and promoting the integration of migrants in new territories by exposing them to indigenous practices.

Cultural organizations are usually small in size because they do not run branches or focus immensely on expansion. Although a majority of these organizations receive funding from governments, they rely primarily on revenues generated locally on a non-profit basis. The organizations generate earned income from such activities as classes offered at language schools for instance. Private financiers comprising of foundations, corporations, and independent individuals may also make contributions to cater for the budget of cultural organizations. Statistics reveal that cultural organizations affiliated to Hispanic and Black/African American ethnicities are financially vulnerable than their Asian/Pacific Islander-affiliated counterparts (Rosenstein 2006). Rosenstein (2006, p. 16) expressed that the former organizations often end their fiscal years with a negative balance. Churches, small businesses, and public agencies are the primary structuring mechanisms that sustain cultural heritage organizations in the community. Since cultural organizations are operated essentially by communities, they do not have robust leadership structures and may usually extract oversight from selected members of the community. However, contemporary practices have seen the rise of professionalism in these organizations with experts serving different roles such as organizing the chronological order of historical material or tracing the roots of cultural elements.

Challenges Facing Cultural Heritage Organizations

The concerns for the rejuvenations and sustenance of cultural heritage organizations are arguably vital and valid in the light of the significance of continued diversity of humanity across generations. The majority of people often perceive the activities of cultural heritage as elementarily informal, extemporaneous practices that occur in public arenas and private homes to be shared and passed to successive generations as part of quotidian existence including work, devotion, and play. The notion of cultural heritage activities as purposeful and motivated compromises their authenticity and underlies the widespread lack of enthusiasm in such activities in contemporary society (Rosenstein 2006).

Nevertheless, engagement in cultural heritage is usually self-conscious especially when communities are subjected to change or the pressure of forces such as state-sponsored civil strife, migration, technological advancements, and economic shifts. These forces induce subtle anomalies in the society and underscore the necessity of cultural organizations as custodians of distinct culture and promoters of preservation and publishing of diversity. It is thus vital for policymakers particularly in developing countries to comprehend the structured components of cultural heritage to allocate a fair share of available resources to promote strategies for addressing the problems that afflict the respective communities represented by cultural organizations. Cultural sector leaders in the previous decade have conceived a framework of cultural citizenship anchored on the notion that cultural institutions are entrenched in social life and necessary for promoting national identity. The model fosters the construction of cultural sector elements that are internationally focused and actively involved in advocacy, the contribution of expression, and creativity in the facets of public life (Cameron 2004).

The concern about the under-resourced state of cultural organizations is not a transient fuss among scholars but rightly one that deserves attention due to the impact on the cultural sector, community life, and policymaking (Hall 2000). Like other corporate organizations, cultural institutions are informed regarding mainstream marketing theories. Over decades, the institutions have gained adeptness in the utilization of marketing techniques and tools (Kolb 2005, p. vii). Nevertheless, they have not embraced the marketing notion that indicates marketing is not based on skills and tools solely but particularly on establishing a relationship between the corporation and the public. Sadly, though, certain cultural heritage centres opine that the proposed approach counters their mission. This belief was affordable for cultural organizations in the past since they were bulwarked against the iron-fisted marketplace realities by public subsidies. The subsequent reduction of subsidies however exposed cultural organizations to the inevitable realization that they needed to familiarize with dynamics of marketing to attract an increasingly hard-to-find audience.

In spite of the seemingly bleak future of cultural organizations arising from resource inadequacy and unconscious public ignorance a different scenario exists that could rescue these institutions from their imminent demise. Nevertheless, the opportunity is one that has to be exploited incessantly through marketing. The respective scenario is manifested in societal changes that have given rise to a new type of cultural heritage customer (Lee 2012). Consumers of culture do not owe allegiance to any specific form of art let alone the art in general. The consumers are in pursuit of cultural experience although such has to be entertaining. Furthermore, the bombardment of cultural organizations with media messages necessitates new and different ways of promotion.

Lee (2012, p. 231) noted that a new class of cultural consumers is growing that is focused on translation, editing, and dissemination of overseas heritage products to increase accessibility. Cultural organizations are however reluctant to translate their content, and this is aggravated by the lack of resources to facilitate the expansion efforts asserting that the lack of copyright authority among other issues would constitute the crime of piracy (Lee 2011). As such, cultural content has remained in the art organizations without allowing foreigners the opportunity to exploit the products and pass them to generations of migrators for instance that intend to integrate into the respective cultural communities. This poses a risk of cultural breakdown as people strangers blend cultural practices randomly and tend to forget the national heritage. This is a further threat to the concept of international identity.

According to Kolb (2005, p. 1), the original purpose of museums was to educate and give pleasure. However, evolving contemporary obligations of museums include the provision of opportunities for spiritual uplift. The attempt to combine the three purposes has afforded a new place for museums in the public space (Schuster, P. –K., 2004). Nevertheless, concerns rage that cultural organizations lack the effectiveness of combining their purposes and respond to market dynamics. For instance, how does a museum combine the three purposes and still satisfy purists whose focus rests on the arts? Cultural corporations have failed to respond to the upcoming needs of the public without compromising the aesthetics of cultural heritage. Consequently, these critical institutions stand as ceremonial monuments that are visited for example by students occasionally rather than hubs of public concentration in pursuit of entertainment, education, and cultural transmission. In fact, individuals, particularly the youth cram concerts of modern music and other creative arts opining that such forums are more entertaining and insightful than the cultural heritage. This scenario highlights the sheer public ignorance that thrives on the reluctance or incompetence of cultural organizations to market classical national and international heritage.

Problem Analysis

Cultural organizations require support as opposed to severe criticism for the failures that suffocate their operations because the organizations serve humanity in general rather than an isolated group of people. The real problem is not that cultural centres have failed entirely to fulfill their mandate. To the contrary, the organizations are only challenged to improve efficiency and competence. In fact, these institutions have played a significant role in marketing their content and reveal its criticality thus warranting empowerment. In their groundbreaking work informing the arts, Mowka, Dawson, and Prieve (1980) suggested that the tools used for marketing in other for-profit and non-profit organizations could be applied to cultural marketing.

Unlike other corporate firms, cultural organizations need not modify existing cultural heritage by adding customization features for instance as these would distort the original information portrayed by the item. The cultural organizations instead have established repositories and thus concentrate on reaching the target audience. The organizational managers hold exhibitions to market their products, and this move has been significant in attracting indigenous populations and scholars alike. A supportive effort for the exhibitions is visible in the work of curators who prepare the content and elaborate their programs. Forthwith, marketing personnel act as consultants to guide distinct audiences to their target cultural heritage (Mejón, Fransi & Johansson 2004). Some curators have even published books drawing on the content of their organizations to explicate various historical developments concerning different cultures and their interaction. An example of such work is Casta Paintings: Images of Race in Eighteenth-Century Mexico by Ilona. This work has sold the cultural heritage of ancient Mexico particularly in higher learning institutions and created demand for more information relating to Mexican history. In effect, cultural centres hosting Mexican culture have a significant customer base as scholars and amateurs yearn to learn the published cultural components first-hand.

Culture heritage organizations also make efforts in advertising their content especially when they plan to host special events such as exhibitions. On the other hand, the organizations may advertise to target certain audience such as tourists or delegates and other attendees of conferences in major cities. In this manner, cultural institutions harness the power public advertisement by raising individual curiosity concerning new adventures and in the process might also attract enthusiasts including scholars who make purposeful tours to learn about international heritage. Rightly so, advertising is both a classic and modern marketing strategy that incorporates the use of billboards, newspapers, and television among other mainstream media to reach the public (Kotler & Keller 2009). The majority of cultural organizations have adopted classical adverting to reach their audience, and the initial efforts were successful although there is a need to shift to modern techniques to counter competition.

In the midst of the threats posed by other organizations offering services that draw on culture such as music concerts, cultural institutions have to prioritize their objectives in the light of the market environment. Establishing healthy customer relationship is vital through achievable objectives that once implemented create lasting impressions and attract more culture consumers (Mejón, Fransi & Johansson 2004). As non-profit corporations, cultural institutions increase their visibility by retaining high-quality services. This is rarely a challenge for these institutions as long as the originality of the cultural heritage they host is retained and published. Cultural organizations should thus maintain their advertisement programs to reach their audience. Moreover, marketing managers do well to revamp the quality of exhibitions by for instance increasing marketing consultants to guide clients and customers on their preferred cultural adventures. Nevertheless, cultural organisations should adopt different strategies to cope with the dynamics of the market and increasing competition.

Marketing Management Strategies for Cultural Organizations

Marketing managers could adopt complementary approaches to boost existing practices of content marketing in cultural institutions. The strategies are common in modern marketing theories that insist on customer satisfaction and organizational reputation. Two of the major strategies that cultural heritage centre managers can use to market their products are discussed here featuring two examples from cultural organizations; one in the US and the other in Asia.

A cultural organization secures high chances of operation if it operates on an explicit mission statement to which they stick in implementing their marketing strategies. With a mission statement in place, the organization should combine the mix marketing methods including packaging and promotion among others to attract and retain a new audience (Kotler & Keller 2009). The organization further identifies and capitalizes on all market gaps in which service provision does not violate its objectives. Potential gaps include the aforementioned spiritual uplifting that attracts audiences inclined to other attributes beyond the arts. In essence, the organization packages its cultural product and presents it to the audience in a way that proves entertaining to rival competitors that feature modern arts. Moreover, cultural organizations can collaborate in exhibitions that foster healthy competition. Collaboration elicits community support and attracts new audiences to consume foreign cultures where are appealing in their presentation.

The J. Paul Getty Museum in Los Angeles has demonstrated the potential in exploiting the market niche. The group drew on the recommendations of focus groups to differentiate their marketing. The outcome was more information on walls such that art’s fans could enjoy their experience. Computers were installed to provide additional information for visitors seeking education. Further, the group introduced laminated cards with challenging questions to help viewers engage deeply with their experience. What is more, comfortable chairs replaced hard benches to host viewers that wanted to ponder over their experience. With these modifications, the museum would attract amateurs and turn them into enthusiasts thus increasing the customer base. In fact, besides educating, the group’s mission statement indicates that its purpose is to delight and inspire (Kolb 2005).

The second marketing strategy for cultural organizations involves digital translation of distribution of cultural products to attract people from diverse cultures. While this strategy contends significantly with challenges of copyright authority, relevant case studies attest to the efficiency of the approach to marketing in the light of attracting consumers with diverse backgrounds (Lee 2011). The anime (Japanese animations) and manga (Japanese comics) industries have tested the efficacy of digital translation and distribution. The cultural contents are scanned, translated and distributed over the internet for sharing with fans that use the translation languages. Cultural organizations make several landmark achievements by translating original content. Firstly, the effort dramatically broadens the repository of free cultural repertory on the online platform. Secondly, they constitute a secular feature of cultural consumption. Thirdly they foster the bottom-up globalization of culture and obscure the chasm between consumption and production. Finally, the efforts transcend the industry’s overseas business in both reach and speed (Lee 2012).

The digital approach is a remarkable technique that experts recommend to boost marketing efficiency of existing mechanisms. The classic advertising modes have subjugated to the speed and coverage of internet technology as the latter is easily accessible across space and time as well as entertaining to explore through simple electronic gadgets that supplant the monotony of mainstream media including newspapers and the television (Durmaz & Efendioglu 2016). Digital advertising is particularly useful in attracting the youth who constitute a significant proportion of the new cultural consumer.

 

Recommendations

Cultural organizations would be prudent to pursue the following steps to revamp their marketing practices:

  • Revise and institute a clear mission statement to govern the extent and limits of their efforts
  • Blend their original services with upcoming trends in fashion and creativity to enrich their products with entertainment features
  • Collaborate in exhibitions to foster competition and attract new audiences to engrossing elements of foreign cultures
  • Adopt digital advertising technology to improve the speed and coverage of their marketing efforts
  • Finally, cultural organizations should establish organizational websites from which cultural consumers should explore new products and features.

Conclusion

Cultural organizations are critical institutions that safeguard national and international heritage to facilitate sharing of culture across generations as well as cultural interaction. The institutions are important components of integration and national integration through their provision of education concerning cultural practices and their illumination of history in unfolding events of the contemporary societies. Nevertheless, the cultural events face critical challenges of marketing their content particularly with the looming threats of competition from more vibrant sectors of the arts industry that introduce increasingly varying products to suit customer needs. Moreover, cultural organizations are under-resourced thus threatening their administration and subsequent survival. These challenges are compounded by an unconscious ignorance of the public and a lack of interest in popular culture. The difficulties against which cultural organizations contend underscore the imperative of efforts to bolster marketing strategies of cultural content. While these institutions provide services to learning institutions and advertise their products quite often, there is need to respond to the market dynamics by adopting new strategies to marketing. Some of the viable marketing strategies include blending of products, institutional collaboration, and adoption of digital marketing practices. These strategies will secure new audiences for cultural organizations in both domestic and overseas markets.

 

 

 

 

 

 

 

 

 

 

 

 

Bibliography

Cameron, B., 2004. Cultural Citizenship. New York: Theater Communications Group.

Ciccarelli, M. & Copp, S., 2001. Culture Builds Communities: The Power of the Arts to Strengthen Neighborhoods. Washington, DC: Partners for Livable Communities.

Durmaz, Y. & Efendioglu, I. H., 2016. “Travel from traditional marketing to digital marketing”, Global Journal of Management and Business Research: E Marketing, 16(2), 1-7.

Hall, J. R., 2000. “Cultural meanings and cultural structures in historical explanation”, History and Theory, 39(3), 331-347.

Katzew, I., 2005. Casta Paintings: Images of Race in Eighteenth-Century Mexico. Yale University Press, New Haven.

Kolb, B. M., 2005. Marketing for Cultural Organisations: New Strategies for Attracting Audiences to Classical Music, Dance, Museums, Theatre & Opera. Andover: Cengage Learning EMEA.

Kotler, P. & Keller, K. L., 2009. Marketing Management, 13th ed. Upper Saddle River, NJ: Pearson.

Lee, H. -K. 2011. “Participatory Media Fandom: A Case Study of Anime Fansubbing”, Media, Culture & Society, 33, 8, 1131-1147.

Lee, H. -K., 2012. “Cultural consumers as ‘new cultural intermediaries’: Manga scanlators”, Arts Marketing: An International Journal, 2(2), 231-143. Viewed 10 March 2017 from <http://www.kcl.ac.uk/artshums/depts/cmci/index.aspx&gt;

McCarthy, K., Ondaatje, E. H., Zakaras, L. & Brooks, A., 2005. Gifts of the Muse: Reframing the Debate about the Benefits of the Arts. Santa Monica, CA: RAND.

Mejón, J., Fransi, E., & Johansson, A., 2004. “Marketing management in cultural organizations: A case study of Catalan museums”, International Journal of Arts Management, 6(2), 11-22. Viewed 10 March 2017 from <http://www.jstor.org/stable/41064816&gt;

Mowka, M. P., Dawson, W. M. & Prieve, E. A., 1980. Marketing the Arts. New York: Praeger.

Putnam, R. & Feldstein, L., 2003. Better Together: Restoring the American Community. New York: Simon and Shuster.

Rosenstein, C., 2006. Cultural Heritage Organizations: Nonprofits That Support Traditional, Ethnic, Folk, and Noncommercial Popular Culture. Washington, D.C.: The Urban Institute. Viewed 10 March 2017 from <http://www.urban.org/sites/default/files/publication/42976/411286-Cultural-Heritage-Organizations.PDF&gt;

Schuster, P. –K., 2004. “Declaration on the importance and value of universal museums: The treasures of world culture in the public museum”, ICOM News, (1), 4-5.

Art and Architecture of latin america

August 16, 2017

What are some common architectural forms in churches and cathedrals in New Spain and Peru Between 1600-1700? 

Some of the common architectural forms of cathedrals and churches in New Spain and Peru Between 1600-1700 were Baroque and Renaissance. Renaissance architectural style was used to construct several churches and cathedrals across Peru and other Spanish colony. Spain developed this style following its introduction by Italy. In this type of architectural style, watermarks and ornaments were used to provide the structures with the desired architectural lines. The architectural lines were made using chisel and painted with silver. Cathedral of Lima is an example of renaissance architectural style that was constructed between 1600 and 1700.  Baroque architectural style was predominant in Spain.

It was characterized curved lines and heavy ornamentation. Cornices, pilasters and columns are some of the elements that were highly decorated in this architectural style. Cathedral of Cuszo and Cathedral of Lima are some of the buildings that were constructed of baroque architectural style between 16th and 18th centuries.

Which elements are used in which places and types of structures and why?

Ramada and espanada are the types of structures that were present in both Peru and Spain between 16th and 18th centuries. Espanada is a Spanish word which refers to a ball-gable. This kind of architecture style consisted of arch bays in which the bells for the church were lodged. Ramada is an architectural style derived from the Spanish word Rama, which refers to a branch. Between 1600 and 1700, there were sparse cases of tremor in both Peru and Spain therefore locally available materials were used to construct this style of architecture.

Ramada structure was predominantly used in the roofing of the churches and cathedrals in Europe during the stated time. Straws or leather straps were used tie the upper corner of the triangular shaped small diameter branches. In some cases, these branches were reinforced by other branches to allow the branches remain at a perpendicular position. Baked clay tile or woven straws were used to overly the branches to form a finished roof system. Walls constructed with limited weight were used to support the ramada roof structure. The foundations for these walls were made up of lime mortar and stone. However, during the period between 1600 and 1800, clay roofing styles were not used in the ramada structures because they were affected by heat.

The espanada structures were sometimes placed on the peripheral walls or convent walls. They were constructed using lime mortar and bricks. However, these materials were used predominantly in northern Peru. In the southern part of Peru, carved stone blocks were used to construct the espanada structures during the colonial period. It is important to note that both ramada and espanada structures were popular because they were made of readily available local materials.

Are there any particular styles which stand out and can you describe their characteristics?

Rococo and Churrigueresque baroque are some of the architectural styles which also stood out acting as replacement of the baroque and renaissance architectural styles. Rococo was used by Spain to construct cathedrals and churches with balconies which are non-rounded. It was also used to reduce use of ornaments in the structures. The columns and cornices in this kind of architectural style became less twisted.

Churrigueresque baroque was developed by Jose de Churriguera, a Spanish architect. It was aimed at encouraging use of whimsical and complicated ornaments in the structures of cathedrals and churches in both Spain and Peru during the colonial period.

 

 

 

 

 

 

 

 

 

 

 

 

 

Work Cited

Donahue-Wallace, Kelly. Art and Architecture of Viceregal Latin America, 1521-1821. UNM Press, 2008.

 

EXECUTIVE POWER IN THE UNITED KINGDOM

August 16, 2017

Role and Functions of Political Parties in British Democracy

The political parties constituting the British government have the task of ensuring there is a democratic governing by the Prime Minister. The Prime Minister is the elect Head of state of the United Kingdom. The formation of many political parties aims to promote democracy and respond to the society’s needs, values and beliefs. The greater the number of political parties, the better the process of governing since each party has to respond to the needs, wants of a particular group of people in the society, and enhances democracy.  The process of conducting the election is mostly fair, and therefore the people can choose a leader that will effectively represent their demands in the parliament (Allen & Cochrane, 2010).

Political parties have many obligations to fulfill to facilitate democracy in the British government. They have the task of informing the public concerning the political candidates vying for a legislative seat and evaluating whether the visions and the missions of an individual candidate align with those that the party has set. This is to ensure that the demands of the public are well catered for and that candidates are not vying for a seat for their advantage. The parties play a role in selecting the political leaders to take vie for legislative seats up to the lowest level instead of the task being left at the hands of the party leader. The parties have their manifesto presented to the public in advance before an election takes place to explain what the political party candidates will do in case they take up the government as compared to the country having independent candidates vying for political seats (Bornschier, 2010).

The political parties also introduce new political candidates to the public. These new candidates may be planning to vie for a political seat in the next coming election, and hence they become conversant with the people of the political party. Political parties also take part in the formulation of governing policies of Britain through the party members who are elected into political seats. Members of the parliament who also represented their parties actively take part in the formulation of new policies hence making the political parties be involved in making of laws. Political parties inform the overall public about important issues affecting the nation. The proceedings of the House of Commons are televised, and therefore the people can easily have access to arguments that are being presented making the governance democratic. If Britain were a one-party state, the proceedings would be hidden since there would be no party to challenge the policies passed by the government. In this way, the public can have access to first-hand information concerning issues affecting the nation and also make a judgment. In case the Britain was a one-party nation, then the public could not have access to live proceedings, and the information that was to be presented might be altered. The parties play as watchdogs to ensure that the ruling government also follows the 2001 manifesto that governs the leadership of the elected government. During the five-year term, the public closely watches the activities of the government to notice if there is a failure on its side. In case there is a failure, then the opposition parties with the help of the public can make the ruling party to surrender the Presidency. Parties also play a role in informing the importance of laws formulated in the parliament proceedings. This happens through rallies that political parties conduct to educate the public of the pros and cons of passing certain laws in the constitution. If the laws or bills were to be passed by a majority vote of the public, then the public can wait and vote with an informed decision. In case Britain was a one-party nation, then bills would be passed without the consultation or knowledge of the public (Costello, 2013).

The party organization is not driven by its wants but mostly the demands of the public. A party’s re-election mainly depends on the public vote and therefore for the party to remain in power, it must fulfill the demands of the electorate. Britain has three major parties, which are Labour, Conservative, and Liberal parties. These parties have had a large membership since their formation and have been in the governance of Britain for decades now as they represent the demands of many British residents. The political parties facilitate peace by ensuring that people on the losing side of an election and understand defeat amicably by making sure that they political party gives hope for a win in the next election. The makes the people remain calm and avoid violent activities. Even after an individual leader loses an election in Britain, the public is assured of being involved in governance through other candidates who have won the election in the party. This enables the public to continue airing their views effectively through the few elected members. The availability of many parties in the United Kingdom makes it easier for people to support any party of their will instead of being forced to support an individual party that does not fully satisfy their needs if it was a one-party nation (Gauja, 2011).

To What Extent is Politics only about Power?

Politics is mostly about power and is defined by political theorists like Robert A. Dahl as the ability to exercise power over others. Other theorists went further to explain that politics has the power to shape political agendas as well as having the ability to control the distribution of resources. Politicians eyeing for a particular seat have the vision of having the power to control how events happen in the political proceedings of the country. Politics can be viewed as a way of controlling people by making the laws and politics, which affect them. The definition of a ruling can exercise power his or her subjects.

To some extent, it can be assumed that politics is about having power over the people that one is leading. The one in the leadership has powers that have been vested in him or her to conduct duties that are of importance to the people. Such a scenario brings the sense of control on the person that is having a particular political power. The politician oversees how the resources allocated to him, or she will be distributed and used. The leader has total power to oversee how all the resources are used and what budget is to be put in place. On the other hand, a leader has an obligation to explain and account how the resources allocated were used and the projects that have been completed. The political leader is answerable to a committee that audits how resources allocated to leaders of some areas are used. Political leaders are the elected people with the power to convince the public of why they should be elected as leaders. The leaders should be able to convince the people they plan to rule effectively. If elected, then this means that they have been given the mandate to rule. They then begin exercise powers given by the law to them by the laws of the constitution. In a democratic government, the powers vested in a person are limited and should not adversely affect the subjects (Hazan & Rahat, 2010).

In another view, leaders have the authority to advocate for the issues that they view may be of positive impact to the society. The political leaders can bring up issues in public to campaign for the passing of bills that they deem may be of importance to the public. These bills have to pass some stages before being passed as laws that are functional in the nation. Although the political leaders do not have full power to debate bills and pass them to laws immediately, the public can have their say and object or support the passing of the bills. The objections can be conducted through filing a case in the court to object the bills (Jones & MacLeod, 2004).

A political leader has the power to attend international and other local meetings to discuss and sign deals that he or she may deem to be of importance to the people. For example, presidents, as well as other political leaders, may decide to travel outside the nation to sign contracts with other presidents of other nations. These contracts must be having a positive impact on the country as well as the people. If the political leader is found to be involved in activities that have an adverse impact on the nation or the people, then his or her ruling can be terminated through a legal procedure.

Looking at the national perspective, the prime minister being the leader of a nation has the power to give orders to the military forces of the country, such as directing them to war. A prime minister or president has the authority to command military to go into war or withdraw from it. To this point, it can be argued that politics is all about the power which it gives to the person who wins an election. At the same time, the leader of the nation can only command the military to act if only the command is reasonable and of national importance and not one that will affect the nation negatively. On the other hand, the leader of the nation also enjoys the power of impunity as they cannot be taken to court unless they are overthrown or resign.

The leader of a country has the responsibility of maintaining peace in the nation through the powers vested in the elect head of the country. He has the power to command the armed forces to engage in peace-keeping missions for the advantage of the nation at large. Concurrently, the head of the nation has the power of sustaining the economic state of the nation and preventing inflation in the country. These powers are consigned to the head of the nation by the passed and the functioning constitution. For a successful political career, one has to have the power to have control. Having power can be convincing for one to rule over his or her subjects. With power, a leader can convince the subjects he or she rules over. The power of the leader must be used wisely or else, he or she may be deemed to be oppressive. Leaders are people with money. Money is considered as a source of power by most people, and it is for this reason that many rich people want to attain political seats to maintain their status quo and continue being powerful. It is this money power that has some influence in the election of political leaders to their political position. For example, businesspeople who have had successful business careers are venturing into politics. From the judgment of turnout of events, it is likely that the process of politics is associated with power.

When an elite and a powerful person vies for a particular seat, it is probably because he or she wants to actively take part in shaping the political agendas as well as represent other people with the same ideologies. This particular person tries to advocate for laws that will favor him or her and as well as other people in the society like him. These laws may not fully favor him but may be advantageous to some degree. From the above analysis, it can be effectively concluded that politics is about power to the extent of fifty percent. This is because although a leader is vested with powers by the constitution, his actions are limited to some extent in a democratic government. Each action that is undertaken by a political leader has some reaction that may make the leader’s time in that seat longer or even terminate the leadership period within the shortest serving period. Being a leader can be viewed as being entrusted with power, but once elected the actions of the leader must accompany the requirements of the law (Power & Frandji, 2010).

Is Devolution more A Problem than a Solution to the Management of Territorial Politics in the United Kingdom?

The United Kingdom comprises four countries, which include England, Scotland, Wales and Northern Ireland. Evaluating economically and politically, if the governance of these states were devolved, each country would sustain itself and deal with the issues that affect it. The leaders of each country would hence concentrate more on the developments and project of their corresponding governments in comparisons to when the governance is centralized. As well known, devolution of any government has its positive and negative impacts. Devolution of the United Kingdom’s government will be more solving as well as problematic to some extent. The resources of the nation will be distributed to the lowest levels of government and hence every resource properly managed and accounted for as compared to when the head of the nation was responsible for the allocation of resources to every region in the United Kingdom (Power & Frandji, 2010).

The head of the nation will have been lifted some weight of having to oversee every matter of national interest. The regional leaders will have to be responsible for the resources allocated to them and will have to give an account of how and when certain resources were used. Lifting the head of the state who is the Prime Minister will allow time for him to concentrate on issues of the national matter. The issues concerning the regional government will be dealt with at the regional level. Devolution will allow solving of issues that may be affecting a certain region and not affecting another. For example, infrastructure issues may affect a certain region while another is having a problem of insecurity and poor housing. The devolution will henceforth allow each region to deal with these factors affecting them separately and independently (Webb, 2002).

Devolution will also allow for proper utilization, monitoring and tracking of how national resources allocated to a region like finance will be used. The public will have the knowledge of how much their region was assigned, how it was used and the projects that are eligible for the resource funding. The regional leaders after being vested with the power and duty to oversee the utilization of resources will be more advantageous to them, and hence they will have an obligation to fulfill to their people instead of having to be in the parliament debating bills. Independence will also be another advantage, as each region will feel more independent than in the old ways when the ruling national head of state is overseeing every action of each region. This will be an advantage to each region as they will be able to utilize whatever they have without the national government interfering. The natural resources of every region will be used, and much of its profits will be given to the particular region before being given to the nation. England can do better without the other countries and hence decentralizing the governance could lead to the countries having a sense of independence and indulging in matters that affect them positively and building their nation.

Devolution will enable each territory address the issues affecting the people. This will give way for the public to be involved in governance actively to a certain higher degree than before. Although each region will not have the power to make their laws, the discussions of bills at the regional level will facilitate proper examination of issues at the regional level before being brought to the national level. The security of the nation will be higher as each region will have its security. This will be a beef up of security of the nation. The public can report cases of insecurity to the regional government as well as solve law-issues at this particular level. On the contrary, on matters of security, there also may be inter-region insecurity or may be a certain region may feel to be less developed and favored than another which will be a matter of national concern (Yuval-Davis, Anthias, & Kofman, 2005).

Asides the advantages, some problems also accrue this devolution process. The cost of forming devolved governments is high together with the cost of running them. This cost will constitute each county having to be given security, healthcare facilities, infrastructure and many more factors to be put into a discussion. Apart from the cost accrued in the formation of the regional governments, the national government will be tasked with the duty of having to keenly monitor the actions of each region which will also make the cost higher as compared to when the government was centralized. A sense of belonging will as well be lowered as compared to the time before devolution even though the regions will not be completely detached from the national government. The people of a certain region will have a higher sense of belonging to the particular region in comparison to when the public had belonging to the national government. The United Kingdom has colossal regions being, England, Scotland, and Wales. Each of these states campaigns to have its governance. One political head of state cannot be given the mandate of having to look after all these large regions. From the evaluation of factors above, it is clear that devolution will be more problem solving. Each territory has the ability to run its affairs effectively and peacefully run its political tasks without the interference from the other. Besides the devolution being problem solving, the inhabitants of the United Kingdom are of the view that the governance is devolved (Ólafsson, 2006).

To What Extent is Social Class still the Principal Determinant of Voting Behavior in British Elections?

The British society constitutes different social classes such as the low class, middle class and upper class. For years these parties have dominantly determined the British electoral process with the members being elected as leaders of political seats which is a trend seen to decreasing recently. From the political analysis view, the British electoral process is not interfered by the social class in any way, but traditionally, it is well known that social class has always been a factor affecting the electoral process. Traditionally, the working class has been seen to mostly vote for socialist parties that will look deep into their demands such as the Labour party while the middle and upper class votes for the conservative party. From this point, it can be concluded that the voting process is highly affected by the social class since each party relies on votes from a particular class (Ólafsson, 2006).

In Britain, some people do not belong to any particular party and hence vote only to support the party with the ideologies, which matter to them most. These people also affect the national electoral process in an unpredictable way. This proves that these people do not vote to base their decision on the current class to which they belong nor basing their decision by a political party. Previous results of elections in Britain have always been predictable. The results of the 1992 and 1997 election proved that the electoral process is still highly affected by the social class. The political parties mostly constitute people of a certain class; the Labour party is mainly made up of the rich class while the conservative party is made up of the upper and the middle class. The Labour party won the elections of the above stated years. This proves that the social class (Yuval-Davis, Anthias, & Kofman, 2005) determines social class to a higher degree.

The political organizations which are the three most popular have always been on the frontline on political matters. These parties have ideologies that mostly welcome a particular social class while another does not. These political parties have been determining who does and who does not take up a particular political seat. For a long time now, the electoral process has been determined by the social class in which people belong although this trend is at a decreasing rate as most people do not vote for anyone by political party attachment. The trend of the social class determining the electoral process has been affected by other factors such as gender, age, religion, ethnicity and many more factors making the electoral process unpredictable by class than the time before. From the above observation, it can be concluded that the electoral process of Britain is only affected by the social class to an extent of forty percent.  Social class has been becoming less and less a determinant in the Britain’s election. With time other factors will become major determining factors and even make many political parties formed by social class withdraw from the political arena of the Great Britain. This has been proven by the elections that have taken place in the recent years (Costello, 2013).

 

Why is Europe Such a Problematic issue in British Politics?

Britain is a member of European Union; this means that the actions and the operations of the British government are to some degree affected by the organization. In the organization, many members of the European Union depend on Britain economically, for trade as well as the population of the union. This makes it harder for Britain to run its errands efficiently either politically or economically. The Union allows for immigration between the member countries, which makes it hard for the British government to determine its political stand effectively due to the influence of immigrants who can get into Britain and take part in political decisions. These links of Britain and other nation’s actively taking part in political decision making has led to Britain being in a dilemma whether to leave the Union or not (Costello, 2013).

There have been debates by the European Union to set up rules that will enable Britain benefit from the organization apart from it being a benefiting factor to other members of the Union. For a country in an international organization, the political acts of it are to some extent limited to the rules and regulations set by the Union, which is why Britain cannot make an informed political decision without the influence of other European Union members. The membership of Britain in the European Union can be viewed as partial and that it is just in the process of trying to leave the union. Britain views the other members of the Union as liabilities, and it is also a primary responsibility to abide by the discriminating rules of the European Union.  These rules affect the political organization of a country such as how it conducts its affairs, such as providing social services to its citizens as well as how it spends on its military. The actions of the nation must be by those set by the European Union or at least be analyzed and evaluated by the other members of the European Union. Britain, which makes up a constitution of Europe has to follow the set rules and regulations. However, the British people voted overwhelmingly in 2016 to leave the European Union and with the process of leaving set to end in a few years. Another factor that makes Europe problematic issue on the political issues of Britain is that it oversees every action that Britain undertakes in the governance of the people of this nation. The nation has to act accordingly in order not to be caught breaking the rules that were set to be followed by every member of the European member (Gauja, 2011).

References

Allen, J., & Cochrane, A. (2010). Assemblages of State Power: Topological Shifts in the Organization of Government and Politics. Antipode42(5), 1071-1089. doi:10.1111/j.1467-8330.2010.00794.x

Bornschier, S. (2010). The New Cultural Divide and the Two-Dimensional Political Space in Western Europe. West European Politics33(3), 419-444. doi:10.1080/01402381003654387

Costello, R. (2013). The Strain of Representation: How Parties Represent Diverse Voters in Western and Eastern Europe. Parliaments, Estates and Representation33(2), 207-209. doi:10.1080/02606755.2013.845355

Gauja, A. (2011). Democracy within Parties: Candidate Selection Methods and their Political Consequences. Parliamentary Affairs65(2), 478-484. doi:10.1093/pa/gsr029

Hazan, R. Y., & Rahat, G. (2010). Candidate Selection, Political Parties, and Democracy. Democracy within Parties, 165-178. doi:10.1093/acprof:oso/9780199572540.003.0010

Jones, M., & MacLeod, G. (2004). Regional spaces, spaces of regionalism: territory, insurgent politics and the English question. Transactions of the Institute of British Geographers29(4), 433-452. doi:10.1111/j.0020-2754.2004.00140.x

Power, S., & Frandji, D. (2010). Education markets, the new politics of recognition and the increasing fatalism towards inequality. Journal of Education Policy25(3), 385-396. doi:10.1080/02680930903576404

Webb, P. (2002). Political Parties in Britain. Political Parties in Advanced Industrial Democracies, 16-45. doi:10.1093/0199240566.003.0002

Yuval-Davis, N., Anthias, F., & Kofman, E. (2005). Secure borders and safe haven and the gendered politics of belonging: Beyond social cohesion. Ethnic and Racial Studies28(3), 513-535. doi:10.1080/0141987042000337867

Ólafsson, S. (2006). Increasing Inequality in Iceland: The role of Politics and Markets in an International Comparative Perspective. Icelandic Review of Politics & Administration2(2), 129. doi:10.13177/irpa.a.2006.2.2.1

 

 

 

 

SHOPPING LIMITED

August 16, 2017

Executive Summary

Shopping limited store generated a loss of £8,000 which would change to a profit of £25,000 after closing the restaurant. Closing the restaurant would boost Shopping Limited’s profitability but would affect its image. The factors that would affect MIS implementation and design include technological, environmental, and organizational factors. Controlling and planning budget within Shopping limited would include establishing production, inventory and establishing financial goals

Question One

marginal costing statements of all departments remaining in operation

Furnishing Kitchenware Restaurant Menswear Toys Store
£000 £000 £000 £000 £000 £001
Sales 560 980 410 430 680 3060
Variable cost
Purchases for sale 400 680 325 229 560 2194
Opening stock 255 63 25.5 27 197 567.5
Departmental expenses 21 10 16.5 5 20 72.5
Sales promotion costs 14 2 0 1 20 37
Closing stock 263 53 25 25.5 229.5 596
Total variable cost 427 702 342 236.5 567.5 2275
Contribution 133 278 68 193.5 112.5 785
Less
Fixed overheads
Non-management wages 75 45 101 65 95 381
Other costs 412
Profit 58 233 -33 128.5 17.5 -8

Marginal costing statements of the closure of the Restaurant Department

Furnishing Kitchenware Menswear Toys Store
£000 £000 £000 £000 £000
Sales 560 980 430 680 2650
Variable cost
Purchases for sale 400 680 229 560 1869
Opening stock 255 63 27 197 542
Departmental expenses 21 10 5 20 56
Sales promotion costs 14 2 1 20 37
Closing stock 263 53 25.5 229.5 571
Total variable cost 427 702 236.5 567.5 1933
Contribution 133 278 193.5 112.5 717
Less
Fixed overheads
Non-management wages 75 45 65 95 280
Other costs 412
Profit 58 233 128.5 17.5 25

Question Two

Financial implication of closing the Restaurant

The restaurant business is contributing £68,000 to the store, but its overall profitability is -£33, without considering other fixed costs. When the restaurant is in operation, store generated an overall loss of -£8,000, but after its closure, the store would overcome its losses and generate £25,000 in income. This means that closing the restaurant would improve the financial performance of the store. The store would be able to generate more income because of increased control over the departmental expenses related to both management and non-management staff. Other financial implications that the store face includes possible cost of retrenching the staff and additional income that would be generated from the sales of assets attached to the restaurant. As such, even though closing the restaurant would be a cost saving strategy and will improve the profitability of the Shopping Limited store.

Non-financial implication of closing the Restaurant

The hotel recipe is well known in the town. This helps to attract publicity for the Shopping Limited in the city. The closure of the restaurant would reduce this publicity. Instead, the regular guests at the hotel would consider Shopping limited as having sustainability issues, which would affect their purchasing of other goods sold by store departments (Bebbington, Unerman, and O’Dwyer, 2014).

Claude, who is the current restaurant manager has earned huge reputation from around the world following his win in potatoes sculpt competition. The closure of the restaurant would render his position obsolete, and thus he would have to be retrenched or moved to another department. This would affect the reputation that Shopping Limited has gained and reduced the sales that have result from this reputation.

Closing the restaurant would lead to retrenchment of workers attached to the restaurant department. This would demotivate the employees from other departments who would develop job insecurity. Job security is important in providing motivation to the employees. The closure of the restaurant would thus demotivate and discourage the remaining employees, which would affect the overall performance of the Shopping limited store. The community does not like businesses that retrench their employees because it is an indication that they are not making sufficient profit.

Shopping would have to deal with the restaurant to change the remaining workers and management. If the workers from the restaurant will be moved to another deportment, they would show resistance to change, because they are not used to working in other departments. Potential customers would not like to be associated with this business where employees are not fully dedicated to serving them.

Question Three

Problems That Samantha Would Need to Address

Samantha is currently in her final year pursuing a degree in management control. She does not have adequate experience in the management accounting. This creates a challenge given that she will be required to prepare and analyze the financial information for the Shopping Limited. Prior experience is important in executing the role duties of preparing the financial reports that are aimed at making divisions in the store (Otley and Emmanuel, 2013).

Shopping Limited does not keep well-structured financial information. The store does not have previous management accounting information. Samantha would be the first person to collect this type of information of the store. This will be tedious for her. She will be required to ensure she has gathered sufficient financial information that would help the executive management of the store make an informed decision.

There is a need for coordination among the store managers to ensure seamless strategies and decisions adoption. Samantha will be acting as a liaising person with other managers by providing support on all aspects of finances. The cases study shows that Samantha often argues with other colleagues such as Albert, who they do not agree on many things. This would create a challenge for Samantha in trying to coordinate the financial information and decisions within the Shopping department.

The top management of the Shopping Limited comprises of old directors. Their age limits their understanding of complex financial information and analysis and makes a sound division. Samantha would be faced with a challenge of ensuring that she has provided sufficient information to the top management, yet the information is simplified enough for them to understand.

The management accounting role includes making projections about the financial performance of the Shopping Limited. This would require her to analyze the historical financial information of the store and provide advice on how to prevent challenges facing the business now. For example, she would have to advise the directors to close the restaurant because it is operating at a loss or provide more capital to expand its operations as suggested by Claude.

Samantha would be required to ensure Shopping limited has adapted to the changes in the business environment. This store prides itself in maintaining the customers’ relationships, and standard of service relates to a bygone era. This limits the ability of, the restaurant to attract young and middle-class customers who are key to the growth of any business. It is within her responsibility as a management accountant to ensure that the hotel adopts suitable financial strategies that will help to tap into this market.

Other challenges that Samantha would face include establishing the cost of providing service, making solid decisions concerning profit planning, establishing the cost behavior and the way in which profit will change with changes in sales volume, and there might be a challenge in effectively dealing with revenue prospects and ascertaining the cost benefit approach. She would also have challenges in ensuring timely delivery of the products by reporting and recording by the store and establishing the; product customer profitability.

Major factors that would influence design and implementation of Management Information System

  1. Organizational Factors

The management support, organizational resources, and organizational size would affect the design of the MIS. Management support is important in MIS implementation and design, where their viewers would be required. The management support helps to motivate other employees and provide require information, commitment, and motivation in the design and implementation of the MIS. The organizational resources including human capital, intellectual capital, financial resources, and other resources will facilitate communication of the structure and purpose of the MIS (Bebbington, Unerman, and O’Dwyer, 2014).

  1. Technological Factors

The technological factors include cost effectiveness, perceived benefits, usefulness, and richness. The effective implementation and design of the MIS will depend on its perceived benefits and usefulness that it will provide to the Shopping Limited. The usefulness is determined by the cost saving that it will bring and efficiency that to will bring.

  1. Environmental Factors

The environmental factors would include competitive intensity and external pressure. The pressure from other organizations and required information by agencies and authorities would affect the MIS design.

Question Four

Setting Up of Budgetary Control and Planning

Budgetary planning refers to the process of preparing the budget within the firm. As management account at the Shopping Limited budgetary planning is vital for the store. This process will involve establishing goals, identifying the alternatives, and gathering the information about them before selecting the best alternative that would suit the store. The final step would involve implementing the chosen decision. In budget planning, one needs to ensure planning is quantified and financed properly and can control the allocation of the resources and performance. As management accountant in the Shopping Limited setting up the budgetary planning and control, the system would include long range and strategic plan and sales budget. Sales budget would include making realistic forecast using such methods as sales force opinions, statistical methods, market research, and mathematical models. On addition, setting up the budget control would include developing production budget and inventory budget. The production budget is expressed in quantitative terms with the duties of the production manager including work-in-progress budget and analysis of the plant utilization.

Store and Behavioral Problems

Some of the behavioral challenges one may face as management accountant include unwillingness on the side of employees and management to support the implementation of the plan. Given that Shopping Limited is a family business, where family members head departments, they may create resistance in supporting and coordinating especially when it comes to financing. This may lead to mistrust that may lead cause underutilization of the objective (Otley and Emmanuel, 2013). For budgetary control to be effective, there would be a need for clear duties and responsibility structure. There should be routines for data reporting, analysis, and collection. There should be time variances and when they are adverse action should be taken to get back to favorable.

Conclusion

Management accounting is important in the efficient running of the organization. Samantha would play a key role in helping Shopping limited reverse the current loss and would help in making strategic decisions based on the implementation of effective data collection and analysis system.

 

 

References List

Bebbington, J., Unerman, J., and O’Dwyer, B. (Eds.). 2014. Sustainability accounting and accountability. Routledge.

Otley, D., and Emmanuel, K. M. C. 2013. Readings in accounting for management control. Springer.

 

TESTING THE CAPITAL ASSET PRICING MODEL USING GENERAL ELECTRIC (GE) STOCKS

August 16, 2017

Table of Contents

Executive Summary. 3

1.0 Introduction 4

2.0 Literature Review on the Concept of Capital Asset Pricing Model(CAPM) 5

2.1 Theoretical Literature. 5

2.2 Empirical Literature. 6

2.3 Summary and Conclusion on the Literature Review.. 6

3.0 Empirical Analysis of the Capital Asset Pricing Model (CAPM) 7

3.1 CAPM Model Design. 7

3.2 Regression Analysis 8

3.3 Summary of the Ordinary Least Squares (OLS) Regression Analysis Outcome. 9

3.4 Comparison of the Estimated Beta and Published Stock Beta for General Electric. 10

3.5 Evaluation on Reliability of the Ordinary Least Squares CAPM Regression Model 10

4.0 Summary and Conclusion. 10

References 12

 

 

 

 

 

 

 

 

 

Executive Summary

The main objective of this report is to evaluate and test the reliability of the capital asset pricing model (CAM) in estimating the relevant stocks’ expected return and its beta coefficient. The study uses ordinary least squares (OLS) regression analysis to build and estimate a model for the General Electric (GE) stocks’ required rate of return based on the capital asset pricing model (CAPM). The regression analysis outcome finds that the model’s intercept (average risk free rate of return) is -1.96% while the stocks’ beta coefficient is 1.0117. In addition, the model’s coefficient of determination (adjusted R2) is equal to 99.02%. On the basis of the regression analysis results, this report finds that the capital asset pricing model (CAPM) can be reliably used in estimating the stocks’ required rate of return due to the model’s high adjusted R2. Finally, the report concludes and acknowledges that since the published beta coefficient for General Electric (GE) is equal to 1.01, the implication is that the estimated capital asset pricing model (CAPM) also seems to provide reliable estimates for the stocks’ beta coefficient.

 

 

 

 

 

 

 

 

 

 

1.0 Introduction

The capital asset pricing model (CAPM) is an investment finance model, which describes the relationship between the expected return of an asset and the relevant systematic risk profile of any asset stock security (Brealey 2013). According to Clark (2014), capital asset pricing model (CAPM) is generally used to determine the value of any asset stock security by taking into consideration the risk free rate of return (return on the 3-month U.S. Treasury Bill) and the market risk premium. The implication is that through the use of capital asset pricing model, investment and financial analysts can determine the extent to which investors will be compensated for the time value of money as well as in assuming the greater inherent risk associated with investment in risky asset securities.

The main objective of this paper is test the reliability of the capital asset pricing model by estimating the risk free rate of return, the asset stock beta for General Electric (GE) stocks and the market risk premium for investors who wish to invest in the stated General Electric (GE) stocks. Therefore, this report will seek to evaluate whether the capital asset pricing model (CAPM) provides accurate and reliable estimates of the asset stocks’ required rate of return, risk free rate of return, and the relevant stocks’ beta coefficient. This research question is important in assessing and evaluating on whether the capital asset pricing model (CAPM) can be reliably used to estimate any asset stock security’s required rate of return.

This test on reliability of the capital asset pricing model (CAPM) in estimating the required rate of return for any asset stock security will be undertaken using the monthly adjusted historical prices for General Electric (GE) stocks, S&P 500 stock security and the U.S. 3-months Treasury bill for the five (5) year period 1st January 2012 to 31st December 2016.

 

2.0 Literature Review on the Concept of Capital Asset Pricing Model (CAPM)

2.1 Theoretical Literature

According to Brealey (2013), capital asset pricing model (CAPM) is an investment finance model, which provides a description of the relationship between the systematic risk and the expected return of an asset stock security. The implication is that given the risk free rate of return on the U.S. Treasury bill (Rf) and the market risk premium (Rm – Rf), investment analysts can estimate the required rate of return on any asset stock security given the stock beta coefficient for the stated asset stock security.

Cadman (2014) contends that the capital asset pricing model (CAPM) can be estimated based on the following model formulation.

Re = Rf + β [Rm – Rf] where;

Re = required rate of return on asset stock security

Rm = return on the market security portfolio (S&P 500)

Rf = Return on the risk free asset (U.S. 3-month Treasury bill)

β = Asset stock security beta.

On the basis of the above model formulation, the expected required rate of return on any asset stock security is basically a component of the risk free rate of return and the market risk premium (Schroeder 2014). The implication is that the capital asset pricing model (CAPM) provides an insight on the extent to which investors will need to be compensated for the time value of money effect as a result of investing their funds over a long-term period of time. Clark (2014) contends that the rate of return on the risk free asset generally provides an estimate of the return to investors that compensates them for the effect on time value of money from their investment funds.

On the other hand, the second component of the capital asset pricing model (CAPM) generally measures the risk premium, which compensates investors with higher expected return for assuming greater risk on the asset stock security. The implication is that the decision by investors to invest their funds in the risky but high return asset stock security instead of investing their funds in the U.S. Treasury bill can only be justified by the high market risk premium return. According to Brealey (2013), the market risk premium return is generally over and above the return on the risk free rate.

2.2 Empirical Literature

In his empirical study on the application of capital asset pricing model (CAPM) on the Chinese stock market, Zheng (2013) finds using multivariate test approach that the capital asset pricing model (CAPM) can be reliably used in estimating the expected required rate of return for any asset stock security listed in the stated stock exchange.  In this case, Zheng (2013) finds that the null hypothesis, which stated that the market stock proxy is on the mean-variance frontier, is rejected.

In addition, Petros (2010) finds that there is a strong linear relationship between the required rate of return for the asset stock securities listed on the Zimbabwe Stock Exchange and the relevant stock beta. The study by Petros (2013) sought to estimate the capital asset pricing model (CAPM) based on the asset stock securities listed at the Zimbabwe Stock Exchange for the period 1st January 2003 to 31st December 2008 using time series and cross-sectional data analysis approach.

2.3 Summary and Conclusion on the Literature Review

On the basis of theoretical and empirical literature review related to the capital asset pricing model (CAPM), this paper concludes that the stated model provides a reliable estimate of the required rate of return on any asset stock security. In addition, according to various theoretical literature, the capital asset pricing model (CAPM) generally provides a useful insight on the extent to which investors should be compensated for the time value of money effect as well as for assuming greater inherent risk associated with investing their funds in a risky asset security as opposed to investing their funds in the risk free U.S. Treasury bill. Therefore, based on the literature review, the capital asset pricing model (CAPM) generally estimates the asset stock security’s required rate of return by incorporating the risk free rate of return and the market risk premium return.

3.0 Empirical Analysis of the Capital Asset Pricing Model (CAPM)

3.1 CAPM Model Design

This section of the report will undertake a test of the capital asset pricing model (CAPM) using ordinary least squares (OLS) regression technique. The regression analysis on the capital asset pricing model (CAPM) will be undertaken using the adjusted monthly historical prices for the General Electric (GE) stocks, S&P 500 market portfolio and the U.S. Treasury bill security. Specifically, the following model formulation will be used to estimate the capital asset pricing model (CAPM) for the General Electric (GE) asset stock security.

[Re – Rf] = Rf + β [Rm – Rf] where;

Re = required rate of return on asset stock security

Rm = return on the market security portfolio (S&P 500)

Rf = Return on the risk free asset (U.S. 3-month Treasury bill)

β = Asset stock security beta.

The implication in this case is that the monthly stock return on the General Electric (GE) asset stock will be adjusted for the risk free rate of return unlike in the previous empirical case studies where the expected return on the risky asset security was not adjusted for changes in the risk free rate of return.

The expected return on the General Electric (GE) asset stock security, S&P 500 market portfolio and the U.S. 3-months Treasury bill will be computed based on the following log return model formulation;

Re = Ln (Pt-1/Pt) where;

Re = monthly return on the General Electric (GE) asset stock.

Pt = monthly adjusted stock prices for General Electric (GE), S&P 500 and U.S. 3-months TB in current period t.

Pt-1 = monthly adjusted stock prices for General Electric (GE), S&P 500 and U.S. 3-months TB in previous period t-1.

3.2 Regression Analysis

The ordinary least squares (OLS) regression will be undertaken based on the stated model formulation [Re – Rf] = Rf + β [Rm – Rf] where the component {Re – Rf} will represent the dependent variable for the model while the component {Rm – Rf} will represent the independent explanatory variable for the model. The intercept for the ordinary least squares (OLS) regression model will represent the risk free rate of return while the slope for the stated regression model will represent the General Electric(GE) stocks’ beta coefficient. Reliability of the capital asset pricing model (CAPM) in estimating the stock’s required rate of return will be measured by the model’s coefficient of determination (Adjusted R2) such that a coefficient of determination that is greater than 0.5 will indicate a statistically strong relationship between the stock’s required rate of return and the market risk premium.

 

3.3 Summary of the Ordinary Least Squares (OLS) Regression Analysis Outcome

The following table provides a summary of the ordinary least squares (OLS) regression analysis outcome to estimate the capital asset pricing model (CAPM) for the General Electric (GE) stocks.

Table 1: Summary of the Ordinary Least Squares (OLS) Regression Outcome

Statistics  
Intercept (α) -0.0196
Slope (β) 1.0117
Adjusted R2 0.9902
ρ-value (Intercept) 0.0174
ρ-value (Slope) 3.2889E-60
F-value 5,978.49

 

On the basis of the above regression analysis results, the following capital asset pricing model (CAPM) can be derived;

[Re – Rf] = -0.0196 + 1.0117 [Rm – Rf]

Therefore, based on the above capital asset pricing model (CAPM) formulation, the average risk free rate of return (return on the 3-month U.S. Treasury bill) is determined as -1.96%. In addition, based on the capital asset pricing model, the General Electric (GE) stock’s beta coefficient is estimated and determined as (β = 1.0117).

 

 

 

3.4 Comparison of the Estimated Beta and the Published Stock Beta for General Electric

Table 2: Estimated Beta and Published Stock Beta for General Electric (GE)

Source of Beta Value of Beta (β)
Ordinary Least Squares (OLS) beta estimate 1.0117
Published beta (Yahoo Finance 2017) 1.01

 

The above table depicts that the estimated beta for General Electric (GE) seems to be fairly similar to the published stock beta for General Electric (GE) based on the stock profile information derived from Yahoo Finance (2017). This information provides evidence that the capital asset pricing model (CAPM) is likely to provide reliable estimates of the stocks’ required rate of return and the relevant stocks’ beta coefficient.

3.5 Evaluation on Reliability of the Ordinary Least Squares CAPM Regression Model

The fact that the ordinary least squares (OLS) regression model’s coefficient of determination (adjusted R2) is 0.9902 implies that 99.02% of fluctuations in the expected return for General Electric (GE) stocks can be explained by movements in the market risk premium. Therefore, this report concludes and acknowledges that the stated capital asset pricing model (CAPM) is expected to provide reliable estimates of the stock’s required rate of return and its beta coefficient.

4.0 Summary and Conclusion

On the basis of the regression analysis results, this paper finds that the estimated average risk free rate of return on the U.S. 3-months Treasury bill is -1.96% while the estimated beta coefficient for the General Electric (GE) stock security is 1.0117. The implication is that the estimated beta coefficient for General Electric (GE) asset stock security is relatively volatile compared to the beta coefficient for the market stock portfolio, S&P 500. In addition, this report finds that the coefficient of determination (adjusted R2) for the derived capital asset pricing model is 99.02%. This implies that the stated capital asset pricing model can be reliably used in estimating the required rate of return and the stock’s beta coefficient for any stock asset security.

Therefore, with respect to the research question for the study, this report concludes and acknowledges that the capital asset pricing model (CAPM) provides a reliable approach and technique for estimating the stocks’ required rate of return and the stocks’ beta coefficient. Finally, the results and conclusions in this study seem to compare favorably with other academic theoretical literature especially with respect to the reliability of the capital asset pricing model (CAPM) in valuing company’s stocks and in estimating the relevant stocks’ required rate of return.

 

 

 

 

 

 

 

 

 

 

 

 

References

Brealey, R 2013, Principles of corporate finance, McGraw Hill, London.

Cadman, T 2014, ‘Climate finance in age of uncertainty, Journal of Finance’, vol. 4, no. 3, pp. 351-356.

Clark, GL 2014, ‘Information, knowledge and investments in offshore markets’, Journal of Sustainable Finance and Investments, vol. 4, no. 4, pp. 299-320.

Petros, J 2013, ‘An empirical investigation of the capital asset pricing model: studying stocks on the Zimbabwe Stock Exchange’, Journal of Finance and Accountancy, vol. 3, no. 1, pp. 1-17.

Schroeder, M 2014, ‘Financial effects of corporate social responsibility’, Journal of Sustainable Finance and Investments, vol. 4, no. 4, pp. 337-350.

Yahoo Finance 2017, General Electric (GE). [online] Available from: <https://uk.finance.yahoo.com>%5BAccessedon 15th March 2017].

Zheng, R 2013, ‘An empirical study of CAPM in Chinese Stock Market’, Journal of Financial Economics, vol. 2, no. 1, pp. 1-24.

 

 

 

 

 

The hazard and potential risks associated with the physical hazard of Slaughterhouse Workers

August 16, 2017

Abstract

Many workers are at a high danger of being affected by the different types of hazards resulting from the exposure of microorganism in the slaughterhouse. Some of the hazards include noise, chemical reaction and exposure to dangerous gasses among others. The hazard and potential risks will not only harm the workers, but it will make the industry to compensate them for their health treatment. This review focuses on dealing with the physical hazard which faces the employees of the slaughterhouse. There are specific emerging hazards, and potential risks which have been pointed out at the slaughterhouse hence necessary measures should be taken to control the risks. The hazard and potential risks associated with the physical hazard of slaughterhouse workers needs to be addressed in a sophisticated manner to come up with the necessary steps to control the hazards and manage the potential risks. Apart from the hazard and possible risks the slaughterhouse workers faces stress, which is associated with the working environmental of the slaughterhouse. This situation has made it possible for the slaughterhouse to be categorized as the most dangerous working place in many industries. The primary objective of this review is to showcase the hazard and potential risks associated with the physical hazard of slaughterhouse workers and what necessary control measures can be taken, to ensure that the risks are well managed, and the worker’s health have been improved.

Keywords: Hazard, potential risks, slaughterhouse, workers, health treatment, control measures.

 

 

 

 

Introduction

A slaughterhouse is a dangerous place where workers are congested, and it can result to hazard and potential risks, which can be harmful to the workers. For the past few years, many slaughterhouses have been employing more workers so as to increase their goals which result in affecting the health of the workers. Laws and regulations, which are supposed to govern the workers, have failed to ensure their safety, by protecting the workers against the hazard and risk their facing in the slaughterhouses. The workers’ rights end up being neglected which can cause them to suffer about the risks evolving in the slaughterhouse. Many slaughterhouse workers are foreigners and people living in low-income societies where the rate of survival is high. Many workers hired to work in the slaughterhouses are not fully qualified, and they do not have certificates to prove that they are fit to work in the industries (Bustillo-Lecompte & Mehrvar, 2015). This is due to the high demand of more workers so as to improve the rate of the industry. Most workers end up being afraid to report any cases concerning their health safety and injuries since they fear to be fired or deported. Therefore, this issue causes more slaughterhouse workers to suffer due to the hazard and potential risks imposed to them in the industries. The slaughterhouses are stuffed with many machines which are operated by manual labor in different levels for the final production. Workers are trained to handle the different types of machines used for different processes. In some situation, different workers slaughter the animals while another sort out the different cuts of meat. These workers are aware of the dangers imposed on them by the nature of the slaughterhouse work since the tools used are dangerous and can cause injuries and accidents to the workers.

Many injuries and accidents experienced in slaughterhouses cannot be prevented. Some of the problems encountered by the workers include the speed at which the workers slaughter the animals. Animals killed and the process can end up causing injuries to workers in the slaughterhouse. In industries where the workload is high, more animals are killed which end up increasing the risk of injuries to the workers. Workers state that, if the speed of slaughtering animals is high, there is no time to sharpen their tools such as knives which end up being blunt and causing injuries and harm. Long working hours end up increasing the risk of injuries in the slaughterhouse. Workers suffer chronic pains on their backs, hands and arms which end up causing stress. More hazard injuries caused by the slaughterhouse hazards end up not being reported to the authorities since workers are afraid to report this type of cases which might cause them to lose their jobs (Reis et al., 2016). In recent years, authorities fail to report on injuries resulting from hazard and potential risks in the slaughterhouses since the workers do not report such cases. Most workers end up enduring working for long hours and continuous pain to be able to live above their poverty level and provide a decent life for their families.

Evaluation and control of hazards

For any slaughterhouse to reduce the risks and hazards affecting their workers, necessary measures should be taken in the industries. These measures need to be evaluated so as to come up with a good control system. The system safety discipline consists of guidelines which are used by managers to control the hazards and potential risks identified in the slaughterhouses. The main aim of the System Safety is to provide the necessary prevention of any hazards and risks in the industries. Accidents and injuries can be avoided by implementing the System safety in the slaughterhouses. The System Safety can also be used to control any dangerous hazards so as to achieve a free-hazard working environment in the industries. A hazard is a situation that can cause any harm to human health. A Risk is any situation which can pose a danger, loss or harm to people.

This system is used to provide a continuous procedure which will provide effective decisions in evaluating the different types of hazards affecting the slaughterhouse workers. Workers have a right to be protected from injuries and accidents caused by hazard features in any slaughterhouse. The system can also provide a good approach to achieving an effective system safety which can be used in controlling the hazards and risk encountered in slaughterhouses (Bahr, 2014). Management of hazards and potential risks in the industries can help a manager identify and know which type of risks can cause real harm, injuries and accidents to workers. Right measures taken in a slaughterhouse can control and minimize risks from taking place. A good example is ensuring that all floors are well cleaned so as to avoid workers from slipping and falling. Hazards and risks can be controlled by simple guidelines from the people in charge of any slaughterhouse so as to avoid accidents and injuries.

Practices that can control hazards

The best practices that can assist and ensure that hazards and risks are controlled include three main stages. These stages focus on dealing with any risks and hazards identified in the industries so as to ensure the rights and safety of the workers are protected. The three main stages which ensure that there is effective risk management include, identification, assessment, and control of risks (Buncic, 2014). These three stages end up creating the necessary measures which are to be used in controlling and preventing the hazards and risks from occurring in the slaughterhouses. The stages also showcase the description of the problems related to hazards and risks and how they are analyzed so as to find the necessary measures or precautions so as to prevent them (Buncic, 2014).

Risk Identification

Before offering any evaluation on controlling of the risks and hazards involved in the slaughterhouse, necessary hazard and risk identification process should be carried out. The Hazard identification involves the process of examining the slaughterhouse for any hazards which could affect the workers. Some of the hazards found in the slaughterhouses include harmful gasses such as carbon dioxide which is released from the decomposing animal manure, ammonia and frayed electric wires. The identification of hazards tends to lead to potential identification risks which must be examined. Factors that contribute to risks should be identified so as to eradicate or prevent them as soon as possible. The hazards and risks identified can be identified through their level of consequence. In this stage, the risks and hazards are categorized depending on which type they are and what damages can they cause to the slaughterhouse, and what factors contributed to the risks and hazards. What necessary measures and control can be taken to ensure that the hazards and risks are controlled? This stage of identification deals with all these features.

Risk Assessment

Before conducting the risk assessment, the slaughterhouse should first conduct an analysis of the risks present in the workplace. The risks analysis focuses on whether the hazards will occur and what will happen when it does occur. Risk assessments involve evaluation of any injury or accident occurring in the slaughterhouse. The risk assessment displays the relentlessness of any injury or accident that has occurred in the slaughterhouse resulting from the hazards. The risk assessments also deal with combining the information from the risk analysis and acquiring the most effective strategies in decision making. An assessment of the risks recommends if a hazard event has ever occurred in any slaughterhouse (Nguyen-Viet, 2016). The slaughterhouse is then examined so as to make sure that the past hazard event won’t occur again in the near future. Workers can also be questioned so as to know the dangers of the hazards and how to control them. The slaughterhouses should be inspected and assessed to ensure that they are free from hazards and safe for the workers. In case a Hazard has been identified, necessary actions should be taken to eradicate the issue. The tools and equipment used in the slaughterhouse should also be assessed and examined to ensure that they are safe and cannot cause any hazards.

Risk control

This stage deals with the control of any hazards or risks encountered by workers in the slaughterhouse or work place. Necessary actions are taken so as to control or eradicate the hazards or risks in the workplace. Some of the actions required may include eradication of the hazards so as to stop causing any more damages in the plant. Under this stage, effective decision making should be applied so as to come up with the best strategies that will deal with the hazards. The risk control should include an incorporation of devices which are safe and development of procedures or training that may result in a sufficient decision, which solves the hazards and risks in the work plantation. The control measures should include the right information or data of the slaughterhouse and how often do the hazards occur. Next would be a developed plan which assesses the current risks and hazards of the plant which in the end will be taken necessary measures to control the issue. A good plan comprises of actions to be taken in dealing with the hazards and risks. Improvements should be done in the working plant, and an effective solution should be administered to the workers (Ninios et al., 2014).

Safety disciplines that handle human factors

Humans are mainly responsible for any necessary safety measures applied in any slaughterhouse or working plant. Individuals who are managers in the slaughterhouses are knowledgeable and well trained in administering the workers. However, the changing technology has enabled a well effective science foundation which can assess the human performance through training and development. Improvement of human performance can help improve the goals of any slaughterhouse; hence necessary safety regulations should be adhered to so as to ensure that the workers’ rights are well catered for. The slaughterhouses should ensure that they provide safety systems to their workers so as to reduce cases involving hazards and risks in the working plant.

Human factors and Human errors

The nature of the system at hand determines the type of factors that would impact the safety of the environment. For this reason, it is essential to note the factors that are dependent of the system at hand for the purpose of easy management of the risks (Stanton, 2013). Human errors have highly contributed to the accidents and injuries involved in the slaughterhouses. Reduction of human errors can improve human safety measures and productivity in any working place. Top managers of any working plants such as the slaughterhouses need advice on how to implement guides and rules and what can be done to prevent errors from occurring, which can cause accidents (Dekker, 2014). New approaches are identified which will help managers apply the Human Reliability Assessment in dealing with human errors. Human Reliability Assessment is in charge of providing and analyzing human roles which can lead to any error in any working plant. This assessment will help eradicate human errors in the working plants in the near future.

Conclusion

In conclusion, the hazard and potential risks associated with the physical hazard of slaughterhouse can end up affecting and causing injury or accidents to the workers. The workers need to be protected against any harmful hazards and any potential risks which are bound to happen in a slaughterhouse. The system safety principles are guidelines to managers so as to provide an effective working plant which is free from hazards and risks to their employees. There are specific stages which are risk development, risk assessment and risk control which helps managers to deal with hazards and any form of injuries in a slaughterhouse.

 

 

 

References

Bahr, N. J. (2014). System safety engineering and risk assessment: a practical approach. CRC Press.

Buncic, S. (2014). Public Health Hazards: B. Control of Biological Meat‐Borne Hazards. Meat Inspection and Control in the Slaughterhouse, 334-353.

Bustillo-Lecompte, C. F., & Mehrvar, M. (2015). Slaughterhouse wastewater characteristics, treatment, and management in the meat processing industry: A review on trends and advances. Journal of environmental management161, 287-302.

Dekker, S. (2014). The field guide to understanding’human error’. Ashgate Publishing, Ltd..

Nguyen-Viet, H. (2016). Risk assessment for food safety management in developing countries.

Ninios, T., Korkeala, H., & Fredriksson-Ahomaa, M. (Eds.). (2014). Meat inspection and control in the slaughterhouse. John Wiley & Sons.

Reis, D., Moro, A., Ramos, E., & Reis, P. (2016). Upper Limbs Exposure to Biomechanical Overload: Occupational Risk Assessment in a Poultry Slaughterhouse. In Advances in Physical Ergonomics and Human Factors (pp. 275-282). Springer International Publishing.

Stanton, N., Salmon, P. M., & Rafferty, L. A. (2013). Human factors methods: a practical guide for engineering and design. Ashgate Publishing,