Archive for April, 2016

Are Preemptive Attacks and Virtual Warfare the Right Answers to Terrorism and Violent Extremism?

April 29, 2016

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Are Preemptive Attacks and Virtual Warfare the Right Answers to Terrorism and Violent Extremism?

Introduction

Ever since the 9/11 terror attacks that left America and the entire world devastated at what terrorism is capable of, there have been ‘interesting’ developments on how to respond to such acts of violence. Virtual warfare and preemptive attacks are part and parcel of responses from the offended countries in a bid to curtail the aggressors.  According to (BBC), a preemptive strikes is “military action taken by a country in response to a threat from another country—the purpose of it is to stop the threatening country carrying out its threat.” Virtual warfare is defined by (Rao and Balas-Timar) as a form of software based warfare that seeks to compensate for human incompetence and eliminate errors.

Due to the effects of globalization in the very advancing forms of technology, the world super powers have turned to virtual monopoly as a form of protecting what is theirs. Interestingly, several scholars such as (D. V. Rao) and (Maggs) argue that the 9/11 terrorist attacks brought about a completely different and advanced template into the game of world wars. In what has now become commonly referred as the ‘age of terror,’ it is now common for super powers to send preemptive warnings through methods such as the infamous anthrax attacks, spying drones, as well as high tech navigation. This paper will explore the use of the new methods of warfare in relation to whether or not they are the solution to terrorism and violent extremism.

Body

Yes, Preemptive Attacks and Virtual Warfare are the Right Answers

The use of new and advanced technology, as well as questionable forms of warfare was long used before the 9/11 terrorist attacks. Historical examples of preemptive war fares work best to justify the current use of preemptive force. Wherever the threat is eminent, history documents that a swift and steady action must be used to quickly eliminate the threat before it can become a real danger.  A good example is that of the 6 day War of 1967 between Israel and Egypt(BBC). As a result of Egypt passing out a policy of hostility towards Israel and putting its military forces on maximum alert among other actions, Israel responded by military force in the end appearing as the aggressors. Furthermore, Egypt teamed up with other Arab states and began mobilizing troops on the Israeli borders swiftly occupying the Sinai Peninsula, west of Gaza strip. This move was indicative of efforts by these Arabic allies to swiftly occupy Israel. This is a real definition of preemptive attack and in this case it is clearly the right answer to a situation that was potentially going to become violent extremism perpetrated by the Israelites on the Egyptians(Ashkenazi).

The Soviet Union was one of the most ruthless and formidable powers and continues even in present day after decapitation. In response to having such a formidable and ruthless power in existence, there was a need for countries to protect their own interest by not looking weak in the eyes of the Soviet Union. During the period of the cold war, super powers such as the USA, dealt with the threat of nuclear weapons by passing out the policy of ‘mutual assured destruction’ (Maggs). By forming this policy, the US ensured that she protected her own interest and protected the motherland from any threats by the Soviet Union. This was simple due to the fact that the leaders of the Soviet Union were very aware of America’s nuclear strength and therefore, were not going to log a fight with a super power that was known for its formidable nuclear strength.

Stemming from the fact that the United States had the power, ability and capacity to unleash a disastrous nuclear annihilation, the Soviet Union was kept at bay. Passing the ‘mutual assured destruction’ policy, best served the interest of not only America but also world peace until such a time when the cold war ended and the Soviet Union dissolved without any destruction.

The current wars in the Middle East might be seen and taken as an unjust move by America (preying on the weak). However, this continuous war that started after the September 11 attacks, as well as America’s homeland security programs, are none other than preemptive war tactics by the country to protect her own. In this case, America’s use of preemptive military force is largely supported by Grotius (Grotius and Whewell) in the book Grotius on the Rights of War and Peace: An Abridged Translation where he says “it be lawful to kill him who is preparing to kill, yet he acts more laudably who would rather be killed than kill.”

In the modern world, there is a serious uprising on what is commonly referred as the war on terror, weapons of mass destruction, as well as attack on global terrorism. After the end of the cold war, there was a proposed policy for international development, world peace that was going to allow for a spread of globalization on a clean slate. Sadly, this was not so as America was soon violated and her homeland security intruded on by the 9/11 terrorist attacks. As a result, the continuous war in Afghanistan which is described as the war on terror continuous being a struggle between Islam and the West.

In order to fully answer the question of whetherpreemptive attacks and virtual warfare are the right answers to terrorism and violent extremism, it becomes imperative to understand what terrorism is and what it entails. In his book, (Wilkinson) describes terrorism as an act of terror that is instilled by one nation towards another or others. Therefore, it is no secret that governments are working tirelessly towards combating terrorism. It is scary to note that some of the technics used by individual government to combat terrorism end up becoming dangerous to people that they are meant to protect.

The war on terrorism can be taken as the war on the rise of Islamic fundamentalism. This is basically a war against the alarming increase of Islamism in Iran and outside the Iranian borders. This is a changed platform of cultural conflict. Terrorism attacks are propelled by a desire by Islamic insurgence to force the entire world to accept their culture, way of life and beliefs. According to Islamic insurgence, anyone who does not see things the way that they do is an enemy and thus they must be destroyed. This is a violation of the human rights as stated by the United Nations (Donnelly). The West does not oppress those at the bottom of the food chain by denying them of their basic human rights. This is the exact opposite of how things are done under extreme Islamic leadership. Therefore, it is important to understand and take note of the fact that the war on terrorism is not propelled by the urge to use weapons, but by a desire to fight for the basic human rights.

Ensuring that everyone understands their basic human rights and where they stand in as far as gender, race and opportunities are concerned. The war on inequality and unjust laws that are passed by oppressive leadership in Islamic extremist led countries is an effort made by the leaders of the West to try and ascertain that the minorities are able to have a say no matter how small it might be.

Virtual war fare is attributed to globalization through the rapid advancement of technology that has seen the world become a global village overnight. It is no longer necessary for military operation to be carried out on physical geographic battlefields. The use of virtual warfare has arguable shortened and cut out the need to ‘travel for war.’ Virtual war fares are taking over the traditional definition of war(Boyle). The International Humanitarian Law (IHL) has been violated time and over again by the use of drones in the battlefield. Interestingly, (Boyle) and other scholars have pointed out that virtual warfare can be simple defined as asymmetrical warfare. When compared to the periods of the Cold War between the USA and USSR, the USA is back at an advantaged angle again. Whereas, during the Cold War, USSR was no match for the USA on the ground of nuclear weaponry, in present day virtual warfare, the Middle East is no match for America’s drones and high tech navigation system. The use of virtual warfare has seemingly changed what known as the traditional definition of war, warfare, and war tactics. This is clearly expressed by (Kahn) when he says “the revolution of military affairs has normalized into steady, incremental advances and accuracy, information, and artificial intelligence. These incremental changes have led us to a place that no longer looks like war.”

No, Preemptive Attacks and Virtual Warfare are not the Right Answers

In as much as it is justifiable for a country to protect her own, this can also become a violation of the same human rights that are meant to be protected as stipulated by the U.N. (Donnelly). There are a lot of other scholars that have already addressed the question of preemptive attacks and how they can possible lead to unwanted and unjustifiable counter terrorist actions. In the example of the Egyptians and other Arabic nations moving in on Israel, Israel responded swiftly but in the end came out as the aggressor while trying to protect her own interest.

In his article, (Maggs) argues that article 51 of the U.N. Charter states that “nothing in the present Charter shall impair the inherent right of individual or collective self-defense if an armed attack occurs against the member of the United nations, until the Security Council has taken measures necessary to maintain international peace and security.” This opens room for discussion where it can be argued that Article 51 is against preemptive attacks and only gives the go ahead for the offended nation to respond but only as an act of self-defense after an armed attack. From the initial definition of preemptive attacks, it is clear that preemptive strikes occur before any actual armed strike is perform by the aggressor.  In the end, if this text from Article 51 is taken into consideration, preemptive attacks and virtual warfare only put a country at the disadvantaged corner as they only achieve to make it appear on the wrong whilst the initial intension will be to block the threat before it actually strikes.

Virtual warfare goes against everything that the IHL stands for. It violates human rights and favors those that have the ability, resources, as well as know how to handle the war. This makes virtual warfare to be unfair and unjust on all grounds. Furthermore, virtual warfare comes across as too harsh and steep a response to terrorism and violent extremism given that it prys on the information of those at the bottom of the food chain who have no say or control on the direction of terrorism and extremism.

Conclusion

This paper has explored the definitions of preemptive attacks and virtual warfare. It has also explored examples and case studies around the face of preemptive attacks, as well as virtual warfare. Interestingly, the use of drones continuous increasing, and countries that are using cyber technology and drones are also steadily increasing. Furthermore, this essay explored the avenues of IHL and how it is violated through the continuous use of virtual warfare. Conversely, the paper has drawn into light several interesting points that advocate against the use of virtual warfare and preemptive attacks. In essence, this essay has looked at some of the costs associated with preemptive attacks and virtual warfare, and concludes that the consequences are always too extreme. The implementation of virtual warfare in the battlefield is meant to provide unprecedented information such as warfare tactics, and plans of the opposing side. However, this is not always the case and this essay has pointed out that the adverse results that are obtained as a result of this type of war are not unpleasant not only for the defending side, but also for the attacking side and the rest of the world. However, the actions of terrorism and violent extremism always display little or no humanity. It therefore safely justifies the use of preemptive attacks and virtual warfare as such extreme responses are the way forward when it comes to responding to a people who seem to lack humanity.

 

 

 

 

 

References

 

Ashkenazi, Eli. “Hamas Defeated IDF in Virtual Warfare during Gaza Conflict, Study Shows.” Haaretz (2013). < http://www. haaretz. com/news/diplomacy-defense/hamas-defeated-idf-in-virtual-warfareduring-gaza-conflict-study-shows. premium-1.491677>.

BBC. “Pre-emptive strikes.” BBC 2014. Document. <http://www.bbc.co.uk/ethics/war/just/preemptive.shtml&gt;.

Boyle, Michael J. “The Costs and Consequences of Drone Warfare.” International Affairs 89.1 (2013): 1-29. Document.

Donnelly, Jack. Universal Human Rights in Theory and Practice. Cornell University Press, 2013. Book.

Grotius, Hugo and William Whewell. Grotius on the Rights of War and Peace: An Abridged Translation. New Jersey: The LawBook Exchange, Ltd, 2011. Book.

Kahn, Paul W. “Imagining Warfare.” European Journal of International Law 241 (2013): 199-200. Article.

Maggs, Gregory E. “How the United States Might Justify a Preemptive Strike on a Rogue Nation’s Nuclear Weapon Development Facilities Under the U.N. Charter.” GW Law Faculty Publications & Other Works (2007): 35. Document. <http://scholarship.law.gwu.edu/cgi/viewcontent.cgi?article=1822&context=faculty_publications&gt;.

Rao, D. Vijay. “Modelling Environmental Factors and Effects in Virtual Warfare Simulators Using a Multi Agent Paradigm.” International Journal of Artificial Intelligence 9.12 (2012): 172-185.

Rao, Vijay D. and Dana Balas-Timar. “A Neuro-Fuzzy Hybridization Approach to Model the Pilot Agent in Air Warfare Simulation Systems.” Journal of Battlefield Technology 17.1 (2014): 23.

Wilkinson, Paul. Terrorism versus Democracy: The Liberal State Response. Taylor & Francis, 2011. Book.

 

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Security Plan and Recommendation Memo

April 29, 2016

To:

Chief Information Officer

From:

[Your Name]

Date:

24 April, 2016

Re:

Security Plan Recommendations

The document shows a security plan that will be implemented to ensure that the data in the system and the systems themselves are secure from any unauthorized access that may affect the confidentiality, privacy and the integrity of the data that is stored in the systems. It also offers a good backup plan management process that will ensure that other than just backup the physical files the data that is stored in the systems is backed up in real time hence reducing the chances of data loss in case of any event that may compromise the data and the systems.

The document then provides a list of various technologies that will be implemented to ensure that the network is secure from harmful data and systems and unauthorized access and hence reducing the chances of compromise of then network. It also gives various measures including password management system, data backup processes and systems and also intrusion detection systems.

 

 

 

Security Strategy to be implemented

The security strategy that will be implemented will be aimed at improving the current security standards of the company and to help deal with the various short comings that have been identified in the Risk assessment that was carried out. There are different aspects of security that will be covered in the security plan so as to ensure that both the physical and the data security of the systems are ensured.

The executive management of the company will be responsible in ensuring that all the aspects of the security strategy are implemented including the various policies that have been set to ensure the security of the systems and the physical security of the backup disks. The executive management team will include the senior management of the organization, CIO and Business and functional managers within the organization.

The company will develop a data owner matrix that will be used to define the people who are responsible for the various types of data that will be stored in the systems. This will help in ensuring that the problem of non-repudiation is solved by ensuring that during the various audits that will be carried out, questionable activities on the data can be assessed and the people responsible identified. All IT assets will then be well documented and issued to specific people who can then be monitored and followed up in case there is any issue with the assets.

The information in the system shall be classified into either public or private or confidential information so as to ensure that different levels of security measures are implemented at each type of the information and hence offering appropriate level of privacy that will be required for each type of information. Public information will be available to everyone either within the organization or outside the organization, private information will be internal information that is only available to specific people within the organization while confidential information will be highly guarded information that will be available to a few people within the organization (Kim & Solomon, 2010).

Identity and access management will be carried out to  ensure that before people are allowed to access the data stored in the system and the various physical data files locations, they are accurately authenticated before the authorization is issued to them. People who are authorized to access the data centers where the physical backup files are stored will be biometrically authenticated before they can be allowed access to these locations. In accessing the various databases, users will be issued with passwords that will be changing every 20 days to ensure that the authentication process is accurate and effective (Sharman, 2011).

The other aspect that will be handled is authorization. This allows users to be given authority to access various functionalities, data and locations within the systems. This ensures that before people can access data and systems they are allowed and given the necessary authentication details. It will also help in ensuring that before various systems can access the data they are given authorizations to access the systems. The various access rights that will be created will then be entered into the system so as to ensure that the rules of authorization created can be used to authenticate and assign the various privileges are assigned based on the responsibilities of the various resources.

In various instances where remote access of the various hardware and software items is required, secure, authenticated, centrally managed and permitted methods will be used. This will help in ensuring that as the remote access processes are being implemented to access the various offsite data centers, locations where the systems have been implemented and the various hardware locations, secure methods that cannot be compromised are used. When accessing sensitive data, the data will not be stored locally so as to ensure that the confidentiality and integrity of this data is maintained.

The other aspect of security that will be focused on is network security. The connection between the various hardware and software applications that are owned by the company with the outside environment will have to be secure so as to ensure that no damage is caused by attacks or access from unauthorized users. This will be achieved by implementing firewalls and various network filtering technology so as to ensure that no harmful materials access the network (Vacca, 2013).

A monitoring plan will also be implemented to ensure that there is constant monitoring of all the systems and the hardware applications to ensure that any security incidences that may arise are identified and rectified to reduce their impact on the IT systems. The monitoring plan will also offer a chance for the security management team to identify various arising issues that they may have to deal with as the systems grow and as more users are added into the system. This will be very useful in ensuring that any security vulnerabilities are identified as soon as possible (Kleidermacher & Kleidermacher, 2012).

The other aspect that will be well defined is backup and recovery process. From time to time, which will be defined in the backup and recovery plan, all data in the system will be backed up so as to provide information that will be used to recover the system in case of any compromise by helping return the system and data back to its original state. The backup process will ensure that all the data and the various files are adequately and systematically backed up. The records of all the data that is backed up and to where it is backed up should be maintained so as to ensure that it is easy to trace the data and recover the systems. Regular tests will be carried out to ensure that the backup process is well implemented and is going to work when need be.

In security the various locations where backup files are stored, physical security measures will be implemented to ensure that these locations are well secure. Areas with sensitive information will be restricted to many people and only people who are responsible for the various activities in the data centers will be allowed access. Various other physical security measures will be implemented including alarms and surveillance systems to detect unauthorized access, equipment control to ensure that all IT hardware equipment are safe. Various other physical security measures will also be implemented to ensure that the physical data files are secure.

Security Technologies

In the achievement of the various IT security strategies that will be required in achieving the set standards of IT security, various technologies will be used to achieve this and various changes in the network structure so as to achieve high network security.

In the protection of the network, firewalls will be implemented in the networks to filter out harmful materials that may enter the network and which may compromise the system. The other network technology that will be used in ensuring that the whole network is well protected, network sniffers and intrusion detection systems will also be implemented so as to ensure that any unauthorized systems and any other harmful materials that may enter the network without authorized are detected before they cause any harm into the network and especially to the systems and data in the system (Singh, 2011).

Surveillance cameras and alarms will be used to achieve physical security of the offsite locations where data files which are used to backup data are stored. They will help in monitoring the activities that take place in these locations and notifying the relevant people responsible for the security of the places in case there is intrusion by unauthorized people. This will help in ensuring that the physical security of the data centers is ensured and also help in taking corrective measures to prevent future attacks for this areas.

To achieve the backup requirements of the data centers, modern data centers that will be used to store backup data will be created. Modern servers which can do not require disks to backup data will be used to backup data. These will also ensure that there is the automation of the backup process and hence ensure that the various human inefficiencies that lead to ineffective data backup are reduced and ensure that the timelines for backing up data are reduced and hence ensuring that the chances of losing data are reduced.

The other technology that will be used to ensure that high security standards are maintained is the use of secure channels of communication including VPNs which will ensure that the various systems that are integrated use virtual private networks to communicate hence protecting access of the data that is being carried in these channels from unauthorized access and hence protecting the integrity and confidentiality of the data.

Encryption will be used to ensure that all the data that is carried through the various networks and that is stored in the databases is protected using secure and private keys hence ensuring that the only people and systems that can access the data are the ones who possess the key that was used to encrypt the data. This ensures that only limited people and systems who are authorized are the only ones can access the data in these systems. This also ensures that in case the data is accessed by unauthorized users, they cannot be able to use the data to cause any harm as it is not in the language which can be understood (Raney, 2012).

Password management systems will be very useful in the management of the security of the data and systems. Most users do not use strong passwords and take long time to change their passwords hence affecting the strength of these passwords. This means that they have to either be reminded or policies created to ensure that this is changed. To ensure that such situations are avoided, password management system will be implemented to manage the passwords that are issued to the users and ensure that these passwords meet the set policies and they are often changed to ensure they offer effective

References

Kim, D. Solomon, M. G.  (2010). Fundamentals of Information Systems Security. Burlington: Jones & Bartlett Publishers.

Kleidermacher, D.  Kleidermacher, M.  (2012). Embedded Systems Security: Practical Methods for Safe and Secure Software and Systems Development. Philadelphia: Elsevier.

Mjølsnes, S. F. (2015). Technology and Practice of Passwords: International Conference on Passwords, PASSWORDS’14, Trondheim, Norway, December 8-10, 2014, Revised Selected Paper. Berlin: Springer.

Raney, M. J. (2012). Encryption. Indianapolis: Dog Ear Publishing.

Sharman, R. (2011). Digital Identity and Access Management: Technologies and Frameworks: Technologies and Frameworks. Pennsylvania: IGI Global.

Singh, B. (2011). Network Security and Management. New Dehli: PHI Learning Pvt. Ltd.

Vacca, J. R. (2013). Network and System Security. Philadelphia: Elsevier.

 

 

 

 

blog

April 26, 2016

 

 

 

 

 

 

Blog.

Name:

Institution:

 

 

 

 

 

 

 

 

 

The United States is founded on a democracy that was developed over many years right from the founders of the nation. It is worth noting that the whole idea of democracy originated from ancient civilizations in both the Greek and the Roman empires, these two empires felt a need for a government that fully represented the people thus fostering practices that would lead to democracy. This kind of civilization was spread to the world through the activities of explorers, colonialists and early Christian missionaries.  The events of the protestant reformation was another factor that also led to the foundation of democracy as it motivated free thinking people who questioned the administration of the Catholic church. Philosophers argued out on the need for equality and the encouragement of individual freedom. These factors alongside the general feel that the British empire was unfair in its rule in America led to a series of American revolts. The founding fathers of America thus settled on a federal government that ruled over the fifty American states, a capital district alongside other territories outside the United States boundaries (Upshur& Burr, 1868).

The government, having been formed in1789, has it components clearly lined out in the constitution. The government is federal thus sharing exemplifying the share of power between the national government and the state governments. There are powers that the federal government have which the state governments do not have, power sharing between the two governments has, over the years raised conflict among to state officials and political scientists who have never agreed on which government should possess more powers than the other. According to the United States constitution, the federal government is divided into three branches; the legislative, the executive and the judicial branch. The legislative branch is entitled with making laws , the executive carries out the laws while the judicial branch evaluates laws.

The legislative branch of the US comprises of the congress which bicameral thus made up of two houses, the House of Representatives and the senate. The House of Representatives is made of membership apportioned to each and every state depending on the census report, it is currently made up of 435 members. There are qualifications for membership in this house even though they are less than those for the senate. This house is tasked with passing of legislations that affect the whole country. The powers of this house also provides for the opportunity to impeach state officials who are further tried by the senate after their impeachment.

The senate is the other house that makes up the United States Congress; its membership is obtained from the states with each state producing two senators. Unlike the House of Representatives, the membership to the senate is not subject to the population in the states. It is tasked with providing consent ion to treaties and the confirmation of the appointment of key government officials. Qualifications for membership include being members of the states that they would like to represent during the elections. The senators are legally bounded to serve for a staggered term of six years .

The legislative branch of the federal government has powers to collect taxes, declare war, and discipline the military among other powers. One of its core roles is in the provision of an oversight role in the federal government, it advices the president on nominations for state positions and the signing of treaties. The congress also conducts impeachments and trials failed state officials, the House of Representative impeaches them while the senate is responsible for trying them.

The President of the United States is the head of the executive branch of the federal government. The president is always elected alongside his or her running mate who eventually becomes the Vice President. Constitutionally the President of the United States is also the commander in chief of the military and is also the head of the federal government. He has powers to sign into law bills passed by the congress. The Vice President having been elected as the presidential running mate during election can act in the capacity of the president in the event the president dies.

The judiciary is the third branch of the federal government, it is responsible in ensuring laws are applied in the country. It presides over legal cases offering judgment which are not only to be used as case laws but are also meant to explain laws in cases where they are not clearly understood. The supreme court of the United States is the highest court in the country which is mandated with the authorization of formation of other courts in the country.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Criticism of my colleague’s blog

Every worker goes to work with an aim of getting wages that are able to help him or her sustain him or herself.  No one is always interested in working in a place where they are likely to receive low wages. It is worth noting that low wages in this case would mean wages that are able to fulfill one’s needs.  There has been a decline in the purchasing power in the United States which means that a larger extent American low wage workers have to work for longer hours in order to be able to afford certain commodities. This is however, in contrary with the fact that the US has achieved greater levels of labor productivity that should make it easier for workers to enjoy substantial wages.   The Democratic presidential, Hillary Clinton, has been campaigning promising a change in economic policies, one of them being the raising of wages to $15/hour. This is targeting the middle class American Citizens who have been receiving low wages.

The American economy is currently suffering from lack of aggregate demand, a fact that my colleague does not seem to recognize in his blog. Related to increasing the minimum wage, Hillary Clinton is promising to help middle class citizens manage the rising cost of goods and services by reducing their taxes in order to increase their purchasing power.

My colleague only focuses on insinuating that hardworking Americans are the only ones entitled to wage increase and therefore not all middle class citizens should benefit from this. It is however worth noting that the spiral effect of increasing the minimum wage would psychologically make ‘’lazy’’ Americans get motivated and work hard.

This economic policy by Hillary Clinton will in the long run increase the purchasing power of citizens thus raising the aggregate demand. An increase in the aggregate demand has positive impacts in the economy of the country as it encourages production. An increase in production not only benefits established business but also motivates investors. This leads to establishment of new businesses that are meant to create more job opportunities, the federal government is able to benefit from this as the taxation of this businesses earns revenue to the government. My colleague’s blog fails to address the fact that the benefits of raising the minimum wage is not only limited to middle class citizens but to all Americans including the wealthy ones.

 

 

 

 

References

Upshur, A. & Burr, C. (1868). The Federal government. New York: Van Evrie, Horton & Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

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Leading managing Developing people

April 22, 2016

Task 2

Executive Summary

There are several issues that are important to note from an organizational point of view in the present generation. In the following report some of the issues that are important from the point of view of the organization are analyzed through a series of blog posts and a reflective account. The issues that are faced by the modern day organization or the issues that are important from the point of view of an organization of modern day are analyzed with particular reference to BlueScope steel. In the first blog the challenges that are faced by a modern day organization are discussed. The challenges are discussed in the light of BlueScope steel. This is followed by a definition of leader and a reflective account of experience with a leader at BlueScope steel. Reflective account of an example of a transformational leader is provided in the third blog. The things that I have learnt through interaction with leaders are also described. The next blog focuses on the differences between manager and leader as described by kotter and provides a reflective account of learning from those differences. Managerial effectiveness and the parameters of the same is the subject of next blog by Boytazis. The issue of whether these concepts apply in the current generation is also analyzed. The next part describes a reflective account of my learning from these blog posts that would be applicable in my life.


LMDP MAR16 DF1.3

  1. The company, where I am currently present is facing a number of challenges. However, if one has to identify a particular one; then that would surely be globalization. Prior to globalization, the market share enjoyed by the company was pretty good. The company was able to command the prices and the profit. However, globalization has thrown open a number of challenges:
  • In line with the fact that there was entry of cheap products from the Chinese manufacturers, the company had to reduce the price of the products that were manufactured by the company so that it would be able to retain the market share. None the less, reduction of price came with reduction of profit as the company has found is difficult to reduce the manufacturing costs.
  • Due to globalization and the entry of other products the numbers of choices that are available to the customers have increased. Thus, the company needs to give to the customer some added features or benefits in order to retain them. However, the additional costs of these features cannot be transferred to the customers in light of the competition.
  •  Limited social media presence and limited use of social media as a marketing tool has distanced the company from youth who finds it difficult to connect with the company.
  1. Along with the challenges listed above, some of the other challenges are: The Company is facing high rates of employee turnover and employee motivation is low at the company. It is difficult to attract the right talent who would be able to turn things around. A general apathy of the top management to the challenges being faced by the company can be listed as another major challenge.
  2. If the challenges that were described above are not effectively addressed, then there is a fear of losing market share and profitability for the company. This can lead the company to bankruptcy if effective actions are not taken at the earliest.

LMDP MAR16 DF2.1

  1. In simple definition of the term, leader is a person who leads people. The leader is expected to lead his followers in a defined direction that is mutually beneficial. He or she is expected to think about the well being of their followers and is one who keeps the benefits and interests of their followers ahead of his or her own interests (Schein, 2010). In short, the leader cares for his followers and ensures that they are able to achieve organizational vision; while at the same time working towards their individual development (Schein, 2010). Responsibility is a quality that comes associated with leadership.
  2. Along with the definition of leader just given; according to me, a leader is a person who has a transformational effect on any one who comes in contact with him. In this respect, I feel that leadership comes from within and people are born as a leader. The leader should be ready to guide the followers and shield them from any harm that might come in their way. I feel that it is also important for the leader to delegate responsibilities and have trust upon his followers even after they fail in one or two attempts.
  3. There are several persons with whom I had to work while I was at the company BlueScope steel. Amongst them, I feel that the sales manager demonstrated true leadership skills and actually excelled in his role. He was always leading from the front and catered to any problems that people under him faced. He always looked after our well being as we were under his command and was always there to protect us in case we failed at certain jobs. However, he always encouraged us to try while he watched all the activities from behind and chipped in timely advice or appreciation at appropriate times. As compared to the sales manager I feel no one else was an example of effective leader but could be described as effective manager. Thus as per definition of the term leader and my understanding of the same, the sales manager can be referred to as a leader. In fact the sales manager had qualities by which he could also be referred to as a transformational leader.

Recommendation

In respect of developing leadership capabilities it is recommended that the people who are selected in the top management or any other leadership position should be of diverse background. It is also required that they should be provided with adequate training and in this regards it is required that the person for the leadership position should be selected after careful examination.

References

Schein, E. H. (2010). Organizational culture and leadership. NY: John Wiley & Sons.

LMDP MAR16 DF2.3

  1. In case of BlueScope steel, I feel that CEO was a transformational leader. He knew all the bits and pieces of the business and market environment. He would like to interact with people at the grass root level in the organization. He had a powerful vision of the organization and knew how to articulate the same. He used to communicate the vision, with workers; even those at the grass root levels, each and every time he had the opportunity to interact with them. There was a particular spirit that he brought in these communications which left listeners spellbound. He was also efficient enough to point out the benefits that people would achieve if the vision is successfully implemented. He did not refer to people as employees rather he referred to them as partners who would together contribute in achieving the vision.
  2. Transformation leaders have a powerful vision by which they can motivate the followers and are caring to the needs and requirements of the followers. They have the power to engage people so that the vision is achieved. They are visionaries who have a power to transform people who they come in contact with. Thus as per the definition of qualities of a transformational leader the CEO can be referred to as a transformational leader.
  3. By studying the CEO of BlueScope steel from close quarters and upon reflecting on the definition of the term leadership, I have learnt that to be an effective leader; I have to understand people and fight for their concerns and benefits. I have come to understand that merely being given a leadership position or bossing around my followers would not make me a leader. In order to be a leader I have to lead them, take care of them and protect them as well as trust them and their abilities so that they automatically start respecting me and look forward to me as a leader (Prive, 2012). I feel that I also need to have a strong vision and be able to communicate this vision to my followers and make them adhere to the same. A leader is required to have a strong vision as he or she is expected to be someone who will lead the organization from front. Without a vision or direction the organization would just sail like a rudderless ship and would fail to make the leap from ordinary to extraordinary.

References:

Prive, T. (2012). Top 10 qualities that make a great leader. Retrieved from http://www.forbes.com/sites/tanyaprive/2012/12/19/top-10-qualities-that-make-a-great-leader/#218e37713564

LMDP MAR16 DF3.1

  1. Kotter says that people often confuse between the terms management and leadership although these are very different from each other. Management is defined by Kotter as a set of processes that are designed to keep the organization functioning as of today and to hit the numbers of the quarter. Ratcliffe states that management is all about planning, staffing, budgeting, measuring performance and clarifying jobs when things do not go according to plan (Ratcliffe, 2013). Leadership, on the other hand means aligning people to the vision of organization through communication, motivation and inspiration.
  2. According to Kotter’s point of view leaders are visionary people while the task of managers is to plan and manage the everyday activities of the firm so as to achieve short term goals. In fact, I feel that leadership and management are interlinked with each other. The long term vision that is set by the leader is actually broken down to short term goals and the task of the manager is to guide people and resources to help in achieving short term goals that would help in achieving the long term vision going into the future.
  3. In line with the statement of Kotter and the view that has been advocated by him, I feel that in order to be an effective leader I should have that visionary capability. I should be something of a visionary who can dream about the future and be successful in communicating the vision to employees and other internal stakeholders of the organization. As a manager I should have the capability to break down the long term vision into short term goals that are achievable. I should then plan, motivate, arrange and dedicate the resources that are available at my disposal for achieving those goals. If the goals are not achieved then it would be my responsibility to address the same.

References

Ratcliffe, R. (2013). What’s the difference between leadership and management? Retrieved from http://www.theguardian.com/careers/difference-between-leadership-management

LMDP MAR16 DF3.2

  1. Many researchers have tried to find the competencies that relate to managerial effectiveness. In this regards Boyatzis identified twelve different variables which are related to competency of the manager. Boyatzis felt that if competence or performance of managers is thought of as dependent variable then change in any one of these independent variables can have an impact on the same. After the publication of the list of variables there were other researchers who tried to expand on the work of Boyatzis and take it further into the future. However, regarding the applicability of these variables in today’s time it is important to take note of the fact that there is no generic competence model that is applicable to all the industries. There are several reasons for the same. For instance it is important to consider the fact that competency based model are based on behaviors rather than being based on accomplishments. It is also important to note that Competencies are defined in broad ambiguous terms and the interpretations of the terms are subjective. These differences and points make sense as being subjective the interpretation of competencies can change according to the evaluation of the interpreter. There is no universal definition of competency that fits in all environment and all roles. It is also important to take note that if a person may be very competent but fails to deliver results then his competency would be of no use to the organization.
  2. Along with the identification of competencies required to be displayed by the manager, the competency that a manager would require to display is likely to change based on the sector or industry that he is involved in. There are certain basic competencies that are required to be displayed by the managers and these competencies are common to mangers in general. In addition to these competencies the managers in certain specific industries need to demonstrate additional competencies which might be required to tackle the particular requirements of his industry or sector (Rubin & Dierdorff, 2009). However, it is important to note that competencies are actually abstract categories of behavior. A manager might have a set of competencies but if these set fails to bring any accomplishments on the job then they are of no used to the company.

Reference:

Rubin, R. S., & Dierdorff, E. C. (2009). How relevant is the MBA? Assessing the alignment of required curricula and required managerial competencies. Academy of Management Learning & Education8(2), 208-224.


Reflective part

Doing the blog entries over the course of several weeks, I have gained several key insights into the working of the companies. I would in the course of following pages address the following thesis statement

“To understand and reflect upon the challenges being faced by modern day organizations in general and BlueScope steel in particular and the understanding that I have gained by studying those.”

With particular reference to BlueScope steel and due to my experience in the company I have come to understand the workings of companies in general and the challenges that are faced by the company.  Firstly, I have come to understand that a company faces several challenges in light of globalization. As seen in the case of BlueScope steel, the company enjoyed a good share of market prior to globalization. However, following globalization there are several challenges that have been faced by companies in general (Hirst, Thompson & Bromley, 2015).

Similarly, BlueScope steel has also faced challenges. These challenges and the way in which BlueScope has dealt with the same have given me fresh insights in the process of tackling the challenges that are faced by the companies in the current era. In respect of challenges related to globalization there was entry of cheap products in the market and this has posed great competition for the products that are manufactured by the company (Beck, 2015). This resulted in the fact that the company faced steep reduction in profit. This was due to the fact that in order to cope with the reduced price offered by the Chinese companies, the company had to reduce prices and this has resulted in reduction of profit for the company (Hitt, Ireland & Hoskisson, 2012). However, through observing this challenge, I have come to understand that the way to compete in the face of global competition and global challenges is to aim for improvement of quality and reduction in cost of production. This would result in reduction in output price and thereby increase in profit.

I have also come to understand and appreciate the fact that in responding to the challenges of globalization, and the renewed focus on building relationship with customers, it is required for the companies in the current era to build upon and use alternate channels of marketing and relationship building with customers’ namely by the use of social media. Through an understanding of the challenges of globalization that are being faced by the companies and the high rates of employee turnover that is coming up as a challenge of globalization; it is important to embark on motivation. In line with globalization it is important to note that the most important asset for the organization is the employees of the organization (Bhagwati, 2007). Thus it is important to keep the employees motivated so that they are able to become the competitive advantage of the company and provide the requisite benefits in terms of goods and service.

In respect of the challenges that are being faced by BlueScope steel or for that matter any company in particular, it is important to reduce the wastage and improve quality of production so that the cost of manufacturing is reduced and at the same time there is improvement in profit margins. It is important to improve motivation of employees so as to increase retention and reduce employee turnover.

By reflecting upon the task of understanding the definition of leadership in general leadership case and with particular reference to the case of BlueScope steel; it is understood that the role and task of leader in case of a company is of the most supreme. The leader is required to care for the followers of the company and is responsible for ensuring that the employees of the organization are able to achieve the goals of the organization (Bolden, & Gosling, 2006). It is important to understand in case of present organization that is BlueScope steel or any other organization for that matter that it is the leader who is responsible for having a vision of the organization (Kouzes & Posner, 2006). After having a vision of the organization the leader is required to guide the employees of the organization towards achieving the slated vision.

In line with the understanding that I have gained through observing the sales manager of the company I have gained an understanding of the attributes that is required to be an effective leader and have come to appreciate the fact that in order to become an effective leader it is required for the leader to hold a definite vision of the future and be able to motivate the employees of the company towards that vision. It is important for the leader to be able to lead the followers so that they are able to achieve the slated vision and he is responsible for protecting the employees of the organization in the event of an apparent crisis that falls upon them (Northouse, 2015). I have come to appreciate the fact that a leader is someone who trusts the ability of followers or the employees of the organization and guides them from behind. He is someone who enables the employees of the company to take charge while he is there to always guide them from behind and watch their actions from far while they strive to achieve the slated vision.

The leader is one who helps the employees achieve the vision of the organization. The vision in this case is stated by the leader himself. The leader does not accomplish the tasks on behalf of the employees but motivates the employees to achieve the goals or visions that are defined by the leader. He is one who ensures that employees are themselves benefitted while they try to achieve the vision of the leader. However, he is one who stands all time behind the employees, takes responsibility for the failure and trusts them and their ability despite failures on their part.

Upon reflection of my experiences in BlueScope steel, I have also come to understand the role of and the definition of a transformational leader in an organization. I have understood that in order to become a transformational leader I need to be able to understand people and their problems. I understood the need to communicate with people. There is a need to talk with the people, be able to communicate the vision with them and make them understand the benefit that lies for them upon achieving that vision (Piccolo & Colquitt, 2006).

In order to become a leader he or she needs to have a strong vision, a vision that would enable him to think beyond the obvious and lead the organization through times of difficulty (Bass, & Riggio, 2006). I have come to understand and appreciate that a leader is one who is required to guide and show the direction to the organization. Upon understanding and reflecting on views of Kotter, I have come to understand that a leader is different from a manager. Unlike a manager whose sole job is to manage the people leader leads the organization towards next leap (Kotter, 2008). Manager is required to plan, staff and budget, measure and clarify things in cases where things do not go according to plans. In short the manager is someone who walks along a defined path, a path that is defined and set according to the board guidelines set by the leader. Thus the role of a leader in case of an organization is defines and is different from the role and task that is performed by manager. Leader is a visionary person who has strong vision about the future and he tries to align the people of the organization with that vision that the leader has about the organization (Kotterman, 2006).

In line with the differences in between a leader and a manager, I feel that leadership capabilities are something that cannot be taught to people. However, I feel that management capabilities can be taught to the people. Upon reflection about the differences in between a leader and a manager, I feel that although leadership capabilities cannot be taught, the person with leadership capabilities can be made to develop the same over a course of time. In case of a manager it is the goal to try and achieve the objective of the organization as is obtained through breakdown of organizational goal and objective. Upon not being able to achieve the objective, then the manager tries to take corrective actions in order to achieve the same.

After studying Boyatzis, I had an understanding that there were certain attributes which helped in determining the competency of a manager. Boytazis developed a list of such attributes. However, upon application of the theory developed by Boytazis in real life scenario, especially in case of BlueScope steel; I understood that there is lot of difference in between theory and practice. There were several researchers who tried to expand on the work of Boytazis and tried to define their own set of variables or attributes. However, upon looking into and examining the case of BlueScope steel, I have come to understand that theory does not apply in practice and it is impossible to have a good theoretical definition of attributes that are required to be an effective manager who is effective and delivers in terms of performance. I have come to reflect upon the fact that the models which are based on competency are actually based on understanding of behavior. However, these models are not based on accomplishments. There is also problem with definitions of competencies that are used in the model (Dreyfus, 2008).

I have come to reflect upon the fact that whether or not depends on the evaluator who is actually evaluating the person. Thus, according to this point of view there is no universal definition of competency or a quantitative measure so as to measure the same. The measure of competence is qualitative and subjective to the viewpoint of the observer. While observing in case of BlueScope Steel, I have come to reflect that theoretical knowledge and practical application differs a lot. In reference to the case of BlueScope steel, I have come to reflect upon the fact that a person might have all the attributes that are defined to be possessed to be parts of a competent leader but might not be deliver on the grounds of performance and thus the presence of these attributes in the person is actually of no use.

For instance in case of BlueScope steel I came across several sales person who were competent as per the bookish definition of terms. However, when it came to deliver on the grounds of sales results they failed in a miserable manner. The behavior of those sales person proved to me that the theories in this regards in general and in case of Boytazis in particular; does in hold true in real life.

Upon reflecting on the case of managers in general and those of BlueScope steel in particular, there was another important insight which I could gain. I understood that the attributes which are used for defining competency in any sector are different from the set of attributes defining competency in another sector. Thus a person who is competent in one sector might not be competent in another sector. A competency as a concept is quiet abstract in nature and unless the same has an bearing on accomplishments in practical life, the same would bear no fruit or no bearings in real life.

Thus, as stated in the above pages and through the course of several blog posts, and my stint at BlueScope steel I have come to understand and reflect upon several important things. I have come to understand the challenges that are associated with globalization in case of a company. I have come to reflect upon the characteristics of a leader and the characteristics of a manager. I have understood that a leader is different from a manager. I have come to reflect upon the fact that theoretical knowledge is different from practical knowledge and thus the competencies or attributes of a manager as defined in theory is different from in real practice. In fact I feel that it is difficult to define the competency of a manager based the presence or absence of an attribute.

However, I feel that in case of an organization it is very important to have a leader who has a distinctive vision and has the ability to lead the employees of the organization towards achieving of that vision. After completion of the task I have come to understand many things that are required in the organization but are not found in the theories or literature. I have come to reflect upon the characteristics of a leader and that of a transformational leader and that of a manager as well. Upon reflection about the differences between a leader and a manager, I have come to understand the attributes that would make me achieve success in either of the roles and to reflect upon the things or attributes which I need to develop.

References

Bass, B. M., & Riggio, R. E. (2006). Transformational leadership. NY: Psychology Press.

Beck, U. (2015). What is globalization. NY: John Wiley & Sons.

Bhagwati, J. (2007). In defense of globalization: With a new afterword. London: Oxford University Press.

Bolden, R., & Gosling, J. (2006). Leadership competencies: time to change the tune?. Leadership2(2), 147-163.

Dreyfus, C. R. (2008). Identifying competencies that predict effectiveness of R&D managers. Journal of Management Development27(1), 76-91.

Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.

Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. NJ: Cengage Learning.

Kotter, J. P. (2008). Force for change: How leadership differs from management. NY: Simon and Schuster.

Kotterman, J. (2006). Leadership versus management: what’s the difference?. The Journal for Quality and Participation29(2), 13.

Kouzes, J. M., & Posner, B. Z. (2006). The leadership challenge (Vol. 3). NY: John Wiley & Sons.

Northouse, P. G. (2015). Leadership: Theory and practice. NY: Sage publications.

Piccolo, R. F., & Colquitt, J. A. (2006). Transformational leadership and job behaviors: The mediating role of core job characteristics. Academy of Management journal49(2), 327-340.

essay- sustained writing

April 21, 2016

Sustained Writing

 

Name:

 

Institution Affiliated:

 

 

 

 

 

 

 

 

 

 

Table of Contents

Introduction. 2

Background: Theories. 3

Corporate Governance. 3

Agency Theory. 5

The Stakeholder theory. 5

Values and Work Environment 7

Identity and Behaviour 7

Collective Identity. 8

Conclusion. 9

Reference List 10

 

 

 

 

 

 

 

 

 

 

 

Introduction

Strikes A symptom of Ailing Industry: Study is an article written on 20th September 2015 by Pav Suy in the Khmer Times. The article captures the emergence of union action or strikes as a key element of failed labour and industrial relations. In the article the author looks at strike within Cambodia. He uses the Cambodian strikes to highlight how strikes have shifted from being part of a vibrant labour or industrial environment to an indicator of “ineffective industrial relations and human resource processes” (Suy, 2015). The author paints a sad picture of the cost implications of union action in Cambodia. He posits that strikes cost “Cambodia about $200 million per year in lost exports” (Suy, 2015). Using the Cambodian case study, this study will seek to understand the implications and causes of union action through elaborate business theories.

Background: Theories

Union action has over the years been rife due to the enhanced democratic space and poor industrial relations. Most of the strikes can be linked to the latter which also acts as a theory that helps us understand union actions insightfully. Corporate governance is one theory that tries to offer insight into the union actions. The corporate governance theories point out to relations, mechanisms and processes by which organizations are managed run. Much of the union actions are thus anchored in the inefficiencies within the management and control processes in an organization. Another theory that presents itself in the analysis of union action is values and identity. Values and identity try to extrapolate how organizational perspectives play a role in determining the prevalence of union actions within an organization. Identity on the other land tries to posit a correlation between identity at individual and collective level in influencing the frequency of union actions.

 

Corporate Governance

Corporations or organizations have become dominant and pivotal institutions. This is shown with the dynamics that characterize corporations in industries in terms of capabilities, sizes and influences.  The governance of these corporates has had a profound impact on various aspects of the social landscape as well as economies. Many organizations continue to wield disproportionate power and influence that have an impact on the lives of various parties-management, employees and other external stakeholders. In light of the Cambodian textile and footwear industry worker strikes, corporates can be said to have failed to establish structured resolution mechanisms to restore order and meet the adequate welfare of workers while at the same time adding value to stockholders.

It is also prudent to understand that corporate governance manifests itself in the running of labour unions globally. Many unions have systems just like business organizations have governance structures, relations and processes by which corporations are directed and controlled. Unions have mechanisms that act on practices, policies, and decisions touching on their stakeholders (workers). In most unions, corporate governance ensures that the interests of the union are aligned to the interests of the workers.

Just like the corporates in the Cambodian textile and footwear industry, unions have been said to have failures and inefficiencies in their governance. Many of the unions’ top brass management are focussed on vested interests which are not aligned to their members’ demands. Through the inefficiencies witnessed through corporate governance, union heads have become strong political heads that can easily wreak havoc and paralyze industrial functions when they want to.  With many of the unions operating on uncontrolled and unregulated environment, much of the organizations within industries such as the Cambodian textile industry will continue to suffer and yield much. All these dynamics are captured by the various corporate governance approaches.

Agency Theory

Under agency theory, the relationship between the principals (shareholders) and agents (management and company executive) is looked into. Under this theory the stakeholders who are notably the owners of the company hire the agents to perform the work for them.  The shareholders or principals entrust the running of the organizations with the agents. The agents are legally mandated to work for the principals through creation of policy, strategies and structures of organizational running. In many scenarios a problem arises where the agent looks into his own self-interest or rather develops opportunistic behaviour which falls short of the principals aspirations.  Through this opportunistic behaviour, the agents may create inefficiencies such as failing to improve the welfare of employees and other pertinent players. This precipitates union actions which ultimately affects the principals’ reputation and also stock value.

In the Cambodian case, the management of the textile and footwear industries failed to capture the concerns of the employees through structured talks with their representatives. Due to this, workers initiated union action which saw the industrial paralysis that affected the running of the aforementioned industry.  Agency theory can be said to also affect the running of unions. The union management as agents fail to act in due diligence by committing to pursue strikes in order to garner new members without consideration of the industrial dynamics. Many shareholders or union members are sometimes forced into actions brought by the desire of the union management to pursue personal interests.

The Stakeholder theory

The theory focuses on any team or individual who can impact or is impacted on by the attainment of the organizational objectives.  The management of the corporates have a network of relationships that they serve this includes employees, suppliers and business partners.  The relationship, in this case, with employees affects the running of the organizations and its profitability within an industry. The employees are thus important elements within the corporate structure. The Cambodian crisis posits the failed relationships pre-empted by adamant unions and high-headed managements. This results to union action which if unchecked brings about industrial paralysis which ends up affecting other stakeholders such as the government agencies, suppliers and business partners. Unions seem to understand the impact of industrial paralysis and thus use it to push for demands however surreal they might be.

Values and Identity

Values are essential in any organization as they establish guidelines surrounding business conduct. Values are static and are not subject to organizational changes. Values are essential in establishing the relations within an industry between various players. This is factual as values provide a framework of how various parties ought to treat one another. For instance, the management ought to treat the workers or the subordinates well. Issues such as remuneration, worker welfare, appraisals, and promotions are some of the issues that constitute conduct (Barrett, 2014, P.41). . The values are also established to precursors of a conducive working environment which often than not is one of the reasons cited whenever union actions are undertaken. Pav Suy denotes this in his article that late payments continue to be one of the negative conditions that make it hard for labourers within the textile and footwear industry to work effectively hence the strikes.

Identity, on the other hand, is defined as the basic cognitive system that humans create distinctions from others individually and collectively. Many organizations and individuals display unique traits, communication, symbolism and behaviour to establish how they want to be perceived. Communication is depicted through direct speech, introducing and divulging of culture, vision, and strategies (Letza, et al., 2008). Symbolism, on the other hand, focuses on the visual representation such as flags, logos, emblems or even colours (Jones & Volpe, 2010, P. 432). Lastly, behaviour is depicted through the conduct of an organization or individual towards the surrounding elements or environment.

Values and Work Environment

Strikes a symptom of Ailing Industry: Study shows a critical correlation between upholding of values and worker satisfaction. The Cambodian textile and footwear industry has endured many strikes due to the breakdown of values within the organizations within the industry (Baker & Anderson, 2010). Many of the managers within the aforementioned industries have ignored organizational values in the pursuit of profits and instituting control within their respective organizations.

The breakdown of values is further manifested in the labour unions that are cited by Pav Suy (2015) to be not overly focussed on the values. Many are not keen to support the workers agenda devoid of vested interests. A number of unions have been highlighted for trying to compete against one another in their quest for more membership. The budding unions are said to be “opportunistic and chase the demands of workers through strikes” (Suy 2015).

Identity and Behaviour

Many of the Cambodian worker unions are founded on the mutual need to push the worker agenda. The unions are created with the worker in mind and are strengthened by the unity cemented by mutual concerns and comradeship expressed by workers. With unions as their platforms of expression, much of their conduct and beliefs gravitate upon what unions hold as values and objectives. Workers express similar behaviours due to the shared concerns and agenda in their engagement with other agents or players in the industrial relations (Bainbridge, 2008).

Collective Identity

In any organization, workers are encouraged to identify with the organizational goals and values. Being main cogs of a firm or organization makes labourers chief cogs within the organizational context. Hatch and Schultz (2004, P. 91), however, notes that workers identify more with their union representatives as compared to the management. The union representatives pay a pivotal role in shaping a worker’s identity through availing welfare and pertinent information which ensures feel protected and have their interests well taken care of.  Many unions enhance the collective identity through constant communication and visibility among their members (Thomsen, 2005). Publishing of periodicals, use of social media et cetera is one of the avenues that unions are currently using to connect and interact with their members. It is through this interaction and discourses that worker identity is enhanced. It is the collective identity that enables Cambodian workers to stand in solidarity, as captured by Suy (2015), whenever their representatives are dismissed unfairly from work.  It is one of the common forces behind strikes in the Cambodian textile and footwear industry. Virtually all triggers of the strikes are precipitated by the collective identity which makes work express their dissatisfaction with “discrimination or dismissal of union representatives by employers” (Suy, 2015).

At the organizational level, to stem out worker agitation and possible union actions, there is need to forge organizational identity. The management in organizations ought to ensure workers understand and appreciate the various facets that make their organizations unique and enviable. The employees ought to understand who they are in relation to an organization. The identification theory cites that for organizational identity has three components (1) “feelings of solidarity with the organization” (2) shared traits (3) behavioural and attitudinal support of the organization (Witting, 2006, P.1). To enhance the identity, there is a need for the employees to have insightful knowledge of the company from its ethics to its financial standing. With the right knowledge and constant communication with the management, relations can be built and inefficiencies reduced between the two parties (Ahrens & Khalifa, 2013). If many Cambodian industries were to enhance organizational identity, union actions can be constrained or reduced.

Conclusion

Strikes A symptom of Ailing Industry: Study by Pav Suy in the Khmer Times captures the industrial relation inefficiencies within the Cambodian textile and footwear industries. These inefficiencies as highlighted are prompted by various elements which in the paper are dissected using theory of corporate governance and principles of values and identity. Values and identity are also explored to dissect the issue of rampant strikes. The values are observed and instituted in the work environment. Identity, on the other hand, is founded on behaviour and collective identity. Many unions in Cambodia are successful in their union actions due to the solidarity shared by workers. Cambodian organizations as aforementioned can counter this through enhancement of organizational identity. Organizational identity if effected well can reduce inefficiencies ensuring that disputes are handled internally devoid of drastic actions.

Corporate governance, on the other hand, through its varied approaches looks into the processes, mechanisms and structures that are integral in the organizational running. Many organizations continue to wield disproportionate power and influence that have an impact on the lives of various parties-management, employees and other external stakeholders. In light of the Cambodian textile and footwear industry worker strikes, corporates can be said to have failed to establish structured resolution mechanisms to restore order and meet the adequate welfare of workers while at the same time adding value to stockholders. All these dynamics are captured by the various corporate governance approaches- agency and stakeholder theories. Under agency theory, the relationship between the principals (shareholders) and agents (management and company executive) is looked into. Stakeholder theory, on the other hand, focuses on any team or individual who can impact or is impacted on by the attainment of the organizational objectives.

 

 

 

 

 

 

 

 

 

 

 

Bibliography

Ahrens, T. & Khalifa, R., 2013. Researching the lived experience of corporate governance. Qualitative Research in Accounting & Management, 10(1), pp. 4-30.

Barrett, R. 2014. The values-driven organization: Unleashing human potential for performance and profit.

Bainbridge, S., 2008. The New Corporate Governance in Theory and Practice. Oxford: Oxford University Press.

Baker, H. K. & Anderson, R., 2010. Corporate Governance: A Synthesis of Theory, Research, and Practice. New York: John Wiley & Sons.

 

Harcourt, M., & Wood, G. E. 2004. Trade unions and democracy: Strategies and perspectives. Manchester: Manchester University Press.

Hatch, M. J., & Schultz, M. 2004. Organizational identity: A reader. Oxford: Oxford University Press.

Jones, C., & Volpe, E. H. 2010. Organizational identification: Extending our understanding of social identities through social networks. Journal of Organizational Behavior32(3), 413-434. doi:10.1002/job.694

Letza, S., Kirkbride, J., Sun, X. & Smallman, C., 2008. Corporate Governance Theorising: Limits, Critics and Alternatives. International Journal of Law and Management, 50(1), pp. 17–32.

 

Suy, P. 2015, September 20. Strikes a Symptom of Ailing Industry: Study. Khmer Times. Retrieved from http://www.khmertimeskh.com/news/15955/strikes-a-symptom-of-ailing-industry–study/

Thomsen, S., 2005. Corporate Governance as a determinant of Corporate Values. The International Journal of Business in Society, 5(4), pp. 10-27.

Wiitting, M. 2006. Relations between organizational identity, identification and organizational objectives: An empirical study in municipalities. Afstudeerartikel voor de opleiding Toegepaste Communicatiewetenschap, 1-20.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial management, financial risk & cash flow

April 21, 2016
Reg No. Assumed Exchange rates for DJF (Part I of assignment)  
62 £Sterling $US € Euro Rand  
157 112 148 11.1
Cost break down of “Temporary works and site overheads”: Skilled Labour Unskilled Labour Local Material Plant (USA) Component Equipment
Skilled Labour DJF 306,000,000 306,000,000 0 0 0                                  –                              –            785,214,000
Unskilled Labour DJF 1,989,000,000 1,989,000,000 982,500,000 7,860,000,000 6,877,500,000          3,917,424,000          525,340,800            440,199,360
Local Material DJF 306,000,000 306,000,000 642,600,000 2,754,000,000 3,488,400,000          1,830,124,800          321,900,000            209,790,000
Plant (USA) $ 1,815,600             203,347,200 150,000,000 1,425,000,000 1,312,500,000              498,400,000          160,950,000              44,955,000
Component (France)                 2,958,000             437,784,000 112,500,000 281,250,000 506,250,000                74,760,000          257,520,000 0
Subtotal 3,242,131,200 112,500,000 675,000,000 1,012,500,000              358,848,000          164,169,000 0
Cost breakdown for supervisory and managerial staff 114,750,000 1,262,250,000 459,000,000              457,531,200 0 0
Supervisory  Staff £ 30,600,000          4,804,200,000 2,114,850,000 14,257,500,000 13,656,150,000          7,137,088,000      1,429,879,800        1,480,158,360
Subtotal          4,804,200,000
Cost breakdown for Construction of Quay and Jetties
Skilled Labour DJF 982,500,000 982,500,000 Cost breakdown for Construction of Rail Links
Unskilled Labour DJF 7,860,000,000 7,860,000,000 Skilled Labour DJF 642,600,000 642,600,000 Supervisory Skilled Unskilled Local Plant from Components from France Equipment from
Local Material DJF 6,877,500,000 6,877,500,000 Unskilled Labour DJF 2,754,000,000 2,754,000,000 Staff Labour Labour Materials USA South Africa
Plant (USA) $ 34,977,000          3,917,424,000 Local Material DJF 3,488,400,000 3,488,400,000 £ Sterling D Dalasi D Dalasi D Dalasi $ Dollars € Euros R South Africa
Equipment (Sout Africa) R 70,740,000             785,214,000 Plant (USA) $ 16,340,400.00          1,830,124,800 1 Temporary works and site overheads. DJF 306,000,000 DJF 1,989,000,000 DJF 306,000,000 $1,815,600 € 2,958,000
Subtotal 20,422,638,000 Component (France)                3,549,600              525,340,800 2 Costs of supervisory and managerial staff £30,600,000
Equipment (SA) R 39,657,600              440,199,360 3 Construction of Quay and Jetties DJF 982,500,000 DJF 7,860,000,000 DJF 6,877,500,000 $34,977,000 R 70,740,000
Subtotal 9,680,664,960 4 Construction of Rail Links DJF 642,600,000 DJF 2,754,000,000 DJF 3,488,400,000 $16,340,400.00 € 3,549,600 R 39,657,600
Cost breakdown for Construction of Roads 5 Construction of Roads DJF 150,000,000 DJF 1,425,000,000 DJF 1,312,500,000 $4,450,000.00 € 2,175,000 R 18,900,000
Skilled Labour DJF 150,000,000 150,000,000 Cost breakdown for Landscaping 6 Warehouses DJF 112,500,000 DJF 281,250,000 DJF 506,250,000 $667,500.00 € 1,087,500 R 4,050,000
Unskilled Labour DJF 1,425,000,000 1,425,000,000 Skilled Labour DJF 114,750,000 114,750,000 7 Storm Culverts and River Diversions DJF 112,500,000 DJF 675,000,000 DJF 1,012,500,000 $3,204,000.00 € 1,740,000
Local Material DJF 1,312,500,000 1,312,500,000 Unskilled Labour DJF 1,262,250,000 1,262,250,000 8 Landscaping DJF 114,750,000 DJF 1,262,250,000 DJF 459,000,000 $4,085,100.00 € 1,109,250
Plant (USA) $ 4,450,000.00             498,400,000 Local Material DJF 459,000,000 459,000,000
Component (France)                 2,175,000             321,900,000 Plant (USA) $ 4,085,100.00              457,531,200
Equipment (SA) R 18,900,000             209,790,000 Component (France)                1,109,250              164,169,000
Subtotal 3,917,590,000 Subtotal 2,457,700,200
Cost breakdown for Warehouses A summary of the project tender sum
Skilled Labour DJF 112,500,000 112,500,000 Temporary works and site overheads 3,242,131,200
Unskilled Labour DJF 281,250,000 281,250,000 Costs of supervisory and managerial staff          4,804,200,000
Local Material DJF 506,250,000 506,250,000 Costs of skilled labour 2,114,850,000
Plant (USA) $ 667,500.00                74,760,000 Costs of unskilled labour 14,257,500,000
Component (France)                 1,087,500             160,950,000 Costs of construction plant          7,137,088,000
Equipment (SA) R 4,050,000                44,955,000 Costs of local material 13,656,150,000
Subtotal 1,180,665,000 Costs of imported component          1,429,879,800
Costs of imported equipment          1,480,158,360
Cost breakdown for Storm Culverts and River Diversions Contingencies          5,774,634,883
Skilled Labour DJF 112,500,000 112,500,000 Head office overheads          2,406,097,868
Unskilled Labour DJF 675,000,000 675,000,000 Profit margin        12,030,489,340
Local Material DJF 1,012,500,000 1,012,500,000 Total of Tender Sum 68,333,179,451
Plant (USA) $ 3,204,000.00             358,848,000
Component (France)                 1,740,000             257,520,000 Cost breakdown for other expenditures
Subtotal 2,416,368,000 Contingency (12%)        5,774,634,883
Head office overheads (5%)        2,406,097,868
Profit margin (25%)      12,030,489,340
Subtotal      20,211,222,091
Item Currency Amount Assumed Exchange rates for DJF
Total Tender Sum DJF 69,237,347,078 (Part I of assignment)
Total 69,237,347,078 £Sterling $US € Euro Rand
157 112 148 11.1
Project Period 2 years (24 Months)
Stages of Settlement
Expected monthly Settlement (DJF)                       2,884,889,462 Stage Item % Contract Amount (DJF)
Stage1  (31/12/2015) Mobilization Settlement 20%                                                  13,847,469,416
Work Completion Settlement per Month                       1,730,933,677 Stage2 (31/01/2016 – 31/08/2017) Interim Settlement 50%                                                  34,618,673,539
Stage3 (31/09/2017 – 31/11/2017) Final Settlement 30%                                                  20,771,204,123
Half contract sum amount                    34,618,673,539 Total Settlement 100%                                                  69,237,347,078
Rrequired Period to achieve 50% of Contract Sum = 20 months                              34,618,673,539
Project Cash Flow:
Mobilization activities Stage 1
2015
Month 01Dec2015
Settlement                              13,847,469,416
 Interim Settlement Stage 2
Jan-16
Month Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Settlement          1,730,933,677                       1,730,933,677                                1,730,933,677                    1,730,933,677                            1,730,933,677                                    1,730,933,677
Month Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Settlement          1,730,933,677                       1,730,933,677                                1,730,933,677                    1,730,933,677                            1,730,933,677                                    1,730,933,677
Interim Settlement Stage 2 & 3
Jan-17
Month Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
Settlement          1,730,933,677                       1,730,933,677                                1,730,933,677                    1,730,933,677                            1,730,933,677                                    1,730,933,677
Month Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Settlement          1,730,933,677                       1,730,933,677                                5,192,801,031                    5,192,801,031                            5,192,801,031                                    5,192,801,031
Preparation Expenses for Cash flow
Item Advanced Settlement% (Dec-2015)
Temporary works and site overheads 50%                    1,621,065,600
Costs of supervisory and managerial staff 20%                        960,840,000
Costs of skilled labour 10%                        211,485,000
Subtotal                    2,793,390,600
Head office overheads 5%                        139,669,530
Total Expenditure                    2,933,060,130
CASH FLOW
2016
TOTALS
Temporary works and site overheads                    1,621,065,600
Costs of supervisory and managerial staff                    3,843,360,000 1621065600
Costs of skilled labour                    1,903,365,000
Costs of unskilled labour                  14,257,500,000
Costs of construction plant                    7,137,088,000
Costs of local material                  13,656,150,000
Costs of imported component                    1,429,879,800
Costs of imported equipment                    1,480,158,360
Item   1-Jan 1-Feb 1-Mar 1-Apr
Temporary works and site overheads                             67,544,400                                      67,544,400                          67,544,400                                  67,544,400
Costs of supervisory and managerial staff                          160,140,000                                    160,140,000                        160,140,000                               160,140,000
Costs of skilled labour                             79,306,875                                      79,306,875                          79,306,875                                  79,306,875
Costs of unskilled labour                          594,062,500                                    594,062,500                        594,062,500                               594,062,500
Costs of construction plant                          297,378,667                                    297,378,667                        297,378,667                               297,378,667
Costs of local material                          569,006,250                                    569,006,250                        569,006,250                               569,006,250
Costs of imported component                             59,578,325                                      59,578,325                          59,578,325                                  59,578,325
Costs of imported equipment                             61,673,265                                      61,673,265                          61,673,265                                  61,673,265
Subtotal                       1,888,690,282                                1,888,690,282                    1,888,690,282                            1,888,690,282
Head office overheads (5%)                             94,434,514                                      94,434,514                          94,434,514                                  94,434,514
Total Expenditure                       1,983,124,796                                1,983,124,796                    1,983,124,796                            1,983,124,796
Item   1-May 1-Jun 1-Jul 1-Aug
Temporary works and site overheads                             67,544,400                                      67,544,400                          67,544,400                                  67,544,400
Costs of supervisory and managerial staff                          160,140,000                                    160,140,000                        160,140,000                               160,140,000
Costs of skilled labour                             79,306,875                                      79,306,875                          79,306,875                                  79,306,875
Costs of unskilled labour                          594,062,500                                    594,062,500                        594,062,500                               594,062,500
Costs of construction plant                          297,378,667                                    297,378,667                        297,378,667                               297,378,667
Costs of local material                          569,006,250                                    569,006,250                        569,006,250                               569,006,250
Costs of imported component                             59,578,325                                      59,578,325                          59,578,325                                  59,578,325
Costs of imported equipment                             61,673,265                                      61,673,265                          61,673,265                                  61,673,265
Subtotal                       1,888,690,282                                1,888,690,282                    1,888,690,282                            1,888,690,282
Head office overheads (5%)                             94,434,514                                      94,434,514                          94,434,514                                  94,434,514
Total Expenditure                       1,983,124,796                                1,983,124,796                    1,983,124,796                            1,983,124,796
Item   1-Sep 1-Oct 1-Nov 1-Dec
Temporary works and site overheads                             67,544,400                                      67,544,400                          67,544,400                                  67,544,400
Costs of supervisory and managerial staff                          160,140,000                                    160,140,000                        160,140,000                               160,140,000
Costs of skilled labour                             79,306,875                                      79,306,875                          79,306,875                                  79,306,875
Costs of unskilled labour                          594,062,500                                    594,062,500                        594,062,500                               594,062,500
Costs of construction plant                          297,378,667                                    297,378,667                        297,378,667                               297,378,667
Costs of local material                          569,006,250                                    569,006,250                        569,006,250                               569,006,250
Costs of imported component                             59,578,325                                      59,578,325                          59,578,325                                  59,578,325
Costs of imported equipment                             61,673,265                                      61,673,265                          61,673,265                                  61,673,265
Subtotal                       1,888,690,282                                1,888,690,282                    1,888,690,282                            1,888,690,282
Head office overheads (5%)                             94,434,514                                      94,434,514                          94,434,514                                  94,434,514
Total Expenditure                       1,983,124,796                                1,983,124,796                    1,983,124,796                            1,983,124,796
CASH FLOW
2017
Item   1-Jan 1-Feb 1-Mar 1-Apr
Temporary works and site overheads                             67,544,400                                      67,544,400                          67,544,400                                  67,544,400
Costs of supervisory and managerial staff                          160,140,000                                    160,140,000                        160,140,000                               160,140,000
Costs of skilled labour                             79,306,875                                      79,306,875                          79,306,875                                  79,306,875
Costs of unskilled labour                          594,062,500                                    594,062,500                        594,062,500                               594,062,500
Costs of construction plant                          297,378,667                                    297,378,667                        297,378,667                               297,378,667
Costs of local material                          569,006,250                                    569,006,250                        569,006,250                               569,006,250
Costs of imported component                             59,578,325                                      59,578,325                          59,578,325                                  59,578,325
Costs of imported equipment                             61,673,265                                      61,673,265                          61,673,265                                  61,673,265
Subtotal                       1,888,690,282                                1,888,690,282                    1,888,690,282                            1,888,690,282
Head office overheads (5%)                             94,434,514                                      94,434,514                          94,434,514                                  94,434,514
Total Expenditure                       1,983,124,796                                1,983,124,796                    1,983,124,796                            1,983,124,796
Item   1-May 1-Jun 1-Jul 1-Aug
Temporary works and site overheads                             67,544,400                                      67,544,400                          67,544,400                                  67,544,400
Costs of supervisory and managerial staff                          160,140,000                                    160,140,000                        160,140,000                               160,140,000
Costs of skilled labour                             79,306,875                                      79,306,875                          79,306,875                                  79,306,875
Costs of unskilled labour                          594,062,500                                    594,062,500                        594,062,500                               594,062,500
Costs of construction plant                          297,378,667                                    297,378,667                        297,378,667                               297,378,667
Costs of local material                          569,006,250                                    569,006,250                        569,006,250                               569,006,250
Costs of imported component                             59,578,325                                      59,578,325                          59,578,325                                  59,578,325
Costs of imported equipment                             61,673,265                                      61,673,265                          61,673,265                                  61,673,265
Subtotal                       1,888,690,282                                1,888,690,282                    1,888,690,282                            1,888,690,282
Head office overheads (5%)                             94,434,514                                      94,434,514                          94,434,514                                  94,434,514
Total Expenditure                       1,983,124,796                                1,983,124,796                    1,983,124,796                            1,983,124,796
Item   1-Sep 1-Oct 1-Nov 1-Dec Jan-18
Temporary works and site overheads                             67,544,400                                      67,544,400                          67,544,400                                  67,544,400                                          67,544,400
Costs of supervisory and managerial staff                          160,140,000                                    160,140,000                        160,140,000                               160,140,000                                        160,140,000
Costs of skilled labour                             79,306,875                                      79,306,875                          79,306,875                                  79,306,875                                          79,306,875
Costs of unskilled labour                          594,062,500                                    594,062,500                        594,062,500                               594,062,500                                        594,062,500
Costs of construction plant                          297,378,667                                    297,378,667                        297,378,667                               297,378,667                                        297,378,667
Costs of local material                          569,006,250                                    569,006,250                        569,006,250                               569,006,250                                        569,006,250
Costs of imported component                             59,578,325                                      59,578,325                          59,578,325                                  59,578,325                                          59,578,325
Costs of imported equipment                             61,673,265                                      61,673,265                          61,673,265                                  61,673,265                                          61,673,265
Subtotal                       1,888,690,282                                1,888,690,282                    1,888,690,282                            1,888,690,282                                    1,888,690,282
Head office overheads (5%)                             94,434,514                                      94,434,514                          94,434,514                                  94,434,514                                          94,434,514
Total Expenditure                       1,983,124,796                                1,983,124,796                    1,983,124,796                            1,983,124,796                                    1,983,124,796
Cash flow schedule:
Cash Flow Dec-15 Year-2016
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash in hand      10,914,409,286      10,662,218,167      10,410,027,048       10,157,835,929        9,905,644,810        9,653,453,692        9,401,262,573         9,149,071,454         8,896,880,335        8,644,689,216        8,392,498,098          8,140,306,979
Income
Mobilization       13,847,469,416
Interim Payment         1,730,933,677         1,730,933,677         1,730,933,677         1,730,933,677        1,730,933,677        1,730,933,677        1,730,933,677         1,730,933,677         1,730,933,677        1,730,933,677        1,730,933,677          1,730,933,677
Final Payment
Total income       13,847,469,416      12,645,342,963      12,393,151,844      12,140,960,725       11,888,769,606      11,636,578,487      11,384,387,369      11,132,196,250       10,880,005,131      10,627,814,012      10,375,622,893      10,123,431,775          9,871,240,656
Expenditure  
Temporary works and site overheads          1,621,065,600              67,544,400              67,544,400              67,544,400               67,544,400              67,544,400              67,544,400              67,544,400               67,544,400              67,544,400              67,544,400              67,544,400                67,544,400
Costs of supervisory and managerial staff             960,840,000            160,140,000            160,140,000            160,140,000            160,140,000           160,140,000            160,140,000           160,140,000            160,140,000            160,140,000            160,140,000            160,140,000             160,140,000
Costs of skilled labour             211,485,000              79,306,875              79,306,875              79,306,875               79,306,875              79,306,875              79,306,875              79,306,875               79,306,875              79,306,875              79,306,875              79,306,875                79,306,875
Costs of unskilled labour            594,062,500            594,062,500            594,062,500            594,062,500           594,062,500            594,062,500           594,062,500            594,062,500            594,062,500            594,062,500            594,062,500             594,062,500
Costs of construction plant            297,378,667            297,378,667            297,378,667            297,378,667           297,378,667            297,378,667           297,378,667            297,378,667            297,378,667            297,378,667            297,378,667             297,378,667
Costs of local material            569,006,250            569,006,250            569,006,250            569,006,250           569,006,250            569,006,250           569,006,250            569,006,250            569,006,250            569,006,250            569,006,250             569,006,250
Costs of imported component              59,578,325              59,578,325              59,578,325               59,578,325              59,578,325              59,578,325              59,578,325               59,578,325              59,578,325              59,578,325              59,578,325                59,578,325
Costs of imported equipment              61,673,265              61,673,265              61,673,265               61,673,265              61,673,265              61,673,265              61,673,265               61,673,265              61,673,265              61,673,265              61,673,265                61,673,265
Subtotal          2,793,390,600         1,888,690,282         1,888,690,282         1,888,690,282         1,888,690,282        1,888,690,282        1,888,690,282        1,888,690,282         1,888,690,282         1,888,690,282        1,888,690,282        1,888,690,282          1,888,690,282
Head office overheads (5%)             139,669,530              94,434,514              94,434,514              94,434,514               94,434,514              94,434,514              94,434,514              94,434,514               94,434,514              94,434,514              94,434,514              94,434,514                94,434,514
Total Expenditure          2,933,060,130         1,983,124,796         1,983,124,796         1,983,124,796         1,983,124,796        1,983,124,796        1,983,124,796        1,983,124,796         1,983,124,796         1,983,124,796        1,983,124,796        1,983,124,796          1,983,124,796
Cumulative Cash Flow       10,914,409,286      10,662,218,167      10,410,027,048      10,157,835,929         9,905,644,810        9,653,453,692        9,401,262,573        9,149,071,454         8,896,880,335         8,644,689,216        8,392,498,098        8,140,306,979          7,888,115,860
Cash Flow Year-2017 TOTAL
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 18-Jan
Cash in hand          7,888,115,860         7,635,924,741         7,383,733,622         7,131,542,504         6,879,351,385        6,627,160,266        6,374,969,147        6,122,778,028         5,870,586,910         9,080,263,145      12,289,939,380      15,499,615,615        18,709,291,850
Income
Mobilization       13,847,469,416
Interim Payment          1,730,933,677         1,730,933,677         1,730,933,677         1,730,933,677         1,730,933,677        1,730,933,677        1,730,933,677        1,730,933,677       34,618,673,539
Final Payment         5,192,801,031         5,192,801,031        5,192,801,031 5192801031 5192801031       20,771,204,123
Total income          9,619,049,537         9,366,858,418         9,114,667,299         8,862,476,181         8,610,285,062        8,358,093,943        8,105,902,824        7,853,711,705       11,063,387,940      14,273,064,176      17,482,740,411      20,692,416,646        23,902,092,881       69,237,347,078
Expenditure
Temporary works and site overheads               67,544,400              67,544,400              67,544,400              67,544,400               67,544,400              67,544,400              67,544,400              67,544,400               67,544,400              67,544,400              67,544,400              67,544,400                67,544,400         3,242,131,200
Costs of supervisory and managerial staff             160,140,000            160,140,000            160,140,000            160,140,000            160,140,000           160,140,000            160,140,000           160,140,000            160,140,000            160,140,000            160,140,000            160,140,000             160,140,000         4,804,200,000
Costs of skilled labour               79,306,875              79,306,875              79,306,875              79,306,875               79,306,875              79,306,875              79,306,875              79,306,875               79,306,875              79,306,875              79,306,875              79,306,875                79,306,875         2,114,850,000
Costs of unskilled labour             594,062,500            594,062,500            594,062,500            594,062,500            594,062,500           594,062,500            594,062,500           594,062,500            594,062,500            594,062,500            594,062,500            594,062,500             594,062,500       14,257,500,000
Costs of construction plant             297,378,667            297,378,667            297,378,667            297,378,667            297,378,667           297,378,667            297,378,667           297,378,667            297,378,667            297,378,667            297,378,667            297,378,667             297,378,667         7,137,088,000
Costs of local material             569,006,250            569,006,250            569,006,250            569,006,250            569,006,250           569,006,250            569,006,250           569,006,250            569,006,250            569,006,250            569,006,250            569,006,250             569,006,250       13,656,150,000
Costs of imported component               59,578,325              59,578,325              59,578,325              59,578,325               59,578,325              59,578,325              59,578,325              59,578,325               59,578,325              59,578,325              59,578,325              59,578,325                59,578,325         1,429,879,800
Costs of imported equipment               61,673,265              61,673,265              61,673,265              61,673,265               61,673,265              61,673,265              61,673,265              61,673,265               61,673,265              61,673,265              61,673,265              61,673,265                61,673,265         1,480,158,360
Subtotal          1,888,690,282         1,888,690,282         1,888,690,282         1,888,690,282         1,888,690,282        1,888,690,282        1,888,690,282        1,888,690,282         1,888,690,282         1,888,690,282        1,888,690,282        1,888,690,282          1,888,690,282       48,121,957,360
Head office overheads (5%)               94,434,514              94,434,514 94434514.08              94,434,514               94,434,514              94,434,514              94,434,514              94,434,514               94,434,514              94,434,514              94,434,514              94,434,514                94,434,514         2,406,097,868
Total Expenditure          1,983,124,796         1,983,124,796         1,983,124,796         1,983,124,796         1,983,124,796        1,983,124,796        1,983,124,796        1,983,124,796         1,983,124,796         1,983,124,796        1,983,124,796        1,983,124,796          1,983,124,796       50,528,055,228
Cumulative Cash Flow          7,635,924,741         7,383,733,622         7,131,542,504         6,879,351,385         6,627,160,266        6,374,969,147        6,122,778,028        5,870,586,910         9,080,263,145      12,289,939,380      15,499,615,615      18,709,291,850        21,918,968,085       18,709,291,850
The profit received by the contractor at the end of the project (DJF)      21,918,968,085
Pretax Profit Margin                      32
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18
2015-2018 10,914,409,286 10,662,218,167 10,410,027,048 10,157,835,929 9,905,644,810 9,653,453,692 9,401,262,573 9,149,071,454 8,896,880,335 8,644,689,216 8,392,498,098 8,140,306,979 7,888,115,860 7,635,924,741 7,383,733,622 7,131,542,504 6,879,351,385 6,627,160,266 6,374,969,147 6,122,778,028 5,870,586,910 9,080,263,145 12,289,939,380 15,499,615,615 18,709,291,850 18,709,291,850
Reg No. Exchange rates for DJF (Part II of assignment)  
62 £Sterling $US € Euro ZARand
170 121 160 12.1
Cost break down of “Temporary works and site overheads”:
Skilled Labour DJF 306,000,000 306,000,000 Skilled Labour Unskilled Labour Local Material Plant (USA) Component Equipment
Unskilled Labour DJF 1,989,000,000 1,989,000,000 0 0 0                                             –                              –          855,954,000
Local Material DJF 306,000,000 306,000,000 982,500,000 7,860,000,000 6,877,500,000                      4,232,217,000          567,936,000          479,856,960
Plant (USA) $ 1,815,600                219,687,600 642,600,000 2,754,000,000 3,488,400,000                      1,977,188,400          348,000,000          228,690,000
Component (France)                    2,958,000                473,280,000 150,000,000 1,425,000,000 1,312,500,000                         538,450,000          174,000,000            49,005,000
Subtotal 3,293,967,600 112,500,000 281,250,000 506,250,000                            80,767,500          278,400,000 0
Cost breakdown for supervisory and managerial staff 112,500,000 675,000,000 1,012,500,000                         387,684,000          177,480,000 0
Supervisory  Staff £ 30,600,000            5,202,000,000 114,750,000 1,262,250,000 459,000,000                         494,297,100 0 0
Subtotal            5,202,000,000 2,114,850,000 14,257,500,000 13,656,150,000                      7,710,604,000      1,545,816,000      1,613,505,960
Cost breakdown for Construction of Roads Cost breakdown for Construction of Quay and Jetties
Skilled Labour DJF 150,000,000 150,000,000 Skilled Labour DJF 982,500,000 982,500,000
Unskilled Labour DJF 1,425,000,000 1,425,000,000 Unskilled Labour DJF 7,860,000,000 7,860,000,000
Local Material DJF 1,312,500,000 1,312,500,000 Local Material DJF 6,877,500,000 6,877,500,000
Plant (USA) $ 4,450,000.00                538,450,000 Plant (USA) $ 34,977,000                      4,232,217,000
Component (France)                    2,175,000                348,000,000 Equipment (Sout Africa) R 70,740,000                         855,954,000
Equipment (SA) R 18,900,000                228,690,000 Subtotal 20,808,171,000
Subtotal 4,002,640,000
Cost breakdown for Construction of Rail Links
Cost breakdown for Warehouses Skilled Labour DJF 642,600,000 642,600,000
Skilled Labour DJF 112,500,000 112,500,000 Unskilled Labour DJF 2,754,000,000 2,754,000,000
Unskilled Labour DJF 281,250,000 281,250,000 Local Material DJF 3,488,400,000 3,488,400,000
Local Material DJF 506,250,000 506,250,000 Plant (USA) $ 16,340,400.00                      1,977,188,400
Plant (USA) $ 667,500.00                  80,767,500 Component (France)                3,549,600                         567,936,000
Component (France)                    1,087,500                174,000,000 Equipment (SA) R 39,657,600                         479,856,960
Equipment (SA) R 4,050,000                  49,005,000 Subtotal 9,909,981,360
Subtotal 1,203,772,500
Cost breakdown for Storm Culverts and River Diversions
Skilled Labour DJF 112,500,000 112,500,000 Cost breakdown for Landscaping
Unskilled Labour DJF 675,000,000 675,000,000 Skilled Labour DJF 114,750,000 114,750,000
Local Material DJF 1,012,500,000 1,012,500,000 Unskilled Labour DJF 1,262,250,000 1,262,250,000
Plant (USA) $ 3,204,000.00                387,684,000 Local Material DJF 459,000,000 459,000,000
Component (France)                    1,740,000                278,400,000 Plant (USA) $ 4,085,100.00                         494,297,100
Subtotal 2,466,084,000 Component (France)                1,109,250                         177,480,000
Subtotal 2,507,777,100
A summary of the project tender sum
Temporary works and site overheads 3,293,967,600
Costs of supervisory and managerial staff        5,202,000,000
Costs of skilled labour 2,114,850,000
Costs of unskilled labour 14,257,500,000
Costs of construction plant        7,710,604,000
Costs of local material 13,656,150,000
Costs of imported component        1,545,816,000
Costs of imported equipment        1,613,505,960
Subtotal of Tender Sum     49,394,393,560
Cost escalation (4.5%)        2,222,747,710
Subtotal costs after inflation (from revised cash flow)      59,706,245,601
Head office overheads (5%)        2,985,312,280
Total Tender Sum      62,691,557,881
Revision of Cash Flow Schedule
List of Hypothesis Uncertainties
Inflation per annum Interest Rates Cost escalation (contract sum) Time overrun
% % % Weeks
10.7 5.5 6.8 -5
Payment Stage(inclusive interest rate)
Stage Item % Contract Amount (DJF) FOR FEBRUARY 2018, THE COST IS FOR ONE WEEK
Stage1  (01/01/2014) Mobilization 20%                13,847,469,416
Stage2 (31/01/2014 – 31/09/2015) Interim Payment 50%                34,618,673,539
Stage3 (31/10/2015 – 31/01/2016) Final Payment 30%                20,771,204,123
Total Payment 100%                69,237,347,078
Project Cash Flow:
Year 2016  Mobilization Activities -Stage 1
Month Jan-16
Payment       13,847,469,416
Year 2016 Interim Payment – Stage 2
Month Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16
Payment         1,730,933,677                 1,730,933,677           1,730,933,677       1,730,933,677      1,730,933,677        1,730,933,677
Month Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Payment         1,730,933,677                 1,730,933,677           1,730,933,677       1,730,933,677      1,730,933,677
Year 2017  Interim Payment + Final Payment – Stage 2 + Stage 3
Month Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
Payment         1,730,933,677                 1,730,933,677           1,730,933,677       1,730,933,677      1,730,933,677        1,730,933,677
Month Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Payment         1,730,933,677                 1,730,933,677           1,730,933,677       5,192,801,031      5,192,801,031        5,192,801,031
Year 2018  Final Payment – Stage 3
Month Jan-18 Feb-18 FOR FEBRUARY 2018, THE COST IS FOR ONE WEEK
Payment         5,192,801,031           1,298,200,257.71
Expenditure on prepartion stage Cash Flow
Item Advanced Payment% Amount (DJF)
Temporary works and site overheads 50%           1,646,983,800
Costs of supervisory and managerial staff 20%           1,040,400,000
Costs of skilled labour 10%               211,485,000
Subtotal           2,898,868,800
Project cash flow – Expenditure over Construction stage
Cash flow – 2016
Item 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun
Temporary works and site overheads                 1,646,983,800                 68,624,325             68,624,325            68,624,325              68,624,325              68,624,325
Costs of supervisory and managerial staff                 1,040,400,000               173,400,000           173,400,000          173,400,000            173,400,000           173,400,000
Costs of skilled labour                     211,485,000                 79,306,875             79,306,875            79,306,875              79,306,875              79,306,875
Costs of unskilled labour               594,062,500           594,062,500          594,062,500            594,062,500           594,062,500
Costs of construction plant               321,275,167           321,275,167          321,275,167            321,275,167           321,275,167
Costs of local material               569,006,250           569,006,250          569,006,250            569,006,250           569,006,250
Costs of imported component                 64,409,000             64,409,000            64,409,000              64,409,000              64,409,000
Costs of imported equipment                 67,229,415             67,229,415            67,229,415              67,229,415              67,229,415
Subtotal                 2,898,868,800           1,937,313,532       1,937,313,532      1,937,313,532        1,937,313,532        1,937,313,532
Item 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec
Temporary works and site overheads                       68,624,325                 68,624,325             68,624,325            68,624,325              68,624,325              68,624,325
Costs of supervisory and managerial staff                     173,400,000               173,400,000           173,400,000          173,400,000            173,400,000           173,400,000
Costs of skilled labour                       79,306,875                 79,306,875             79,306,875            79,306,875              79,306,875              79,306,875
Costs of unskilled labour                     594,062,500               594,062,500           594,062,500          594,062,500            594,062,500           594,062,500
Costs of construction plant                     321,275,167               321,275,167           321,275,167          321,275,167            321,275,167           321,275,167
Costs of local material                     569,006,250               569,006,250           569,006,250          569,006,250            569,006,250           569,006,250
Costs of imported component                       64,409,000                 64,409,000             64,409,000            64,409,000              64,409,000              64,409,000
Costs of imported equipment                       67,229,415                 67,229,415             67,229,415            67,229,415              67,229,415              67,229,415
Subtotal                 1,937,313,532           1,937,313,532       1,937,313,532      1,937,313,532        1,937,313,532        1,937,313,532
Cash flow – 2017
Item 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun
Temporary works and site overheads                       68,624,325                 68,624,325             68,624,325            68,624,325              68,624,325              68,624,325
Costs of supervisory and managerial staff                     173,400,000               173,400,000           173,400,000          173,400,000            173,400,000           173,400,000
Costs of skilled labour                       79,306,875                 79,306,875             79,306,875            79,306,875              79,306,875              79,306,875
Costs of unskilled labour                     594,062,500               594,062,500           594,062,500          594,062,500            594,062,500           594,062,500
Costs of construction plant                     321,275,167               321,275,167           321,275,167          321,275,167            321,275,167           321,275,167
Costs of local material                     569,006,250               569,006,250           569,006,250          569,006,250            569,006,250           569,006,250
Costs of imported component                       64,409,000                 64,409,000             64,409,000            64,409,000              64,409,000              64,409,000
Costs of imported equipment                       67,229,415                 67,229,415             67,229,415            67,229,415              67,229,415              67,229,415
Subtotal                 1,937,313,532           1,937,313,532       1,937,313,532      1,937,313,532        1,937,313,532        1,937,313,532
Item 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec
Temporary works and site overheads                       68,624,325                 68,624,325             68,624,325            68,624,325              68,624,325              68,624,325
Costs of supervisory and managerial staff                     173,400,000               173,400,000           173,400,000          173,400,000            173,400,000           173,400,000
Costs of skilled labour                       79,306,875                 79,306,875             79,306,875            79,306,875              79,306,875              79,306,875
Costs of unskilled labour                     594,062,500               594,062,500           594,062,500          594,062,500            594,062,500           594,062,500
Costs of construction plant                     321,275,167               321,275,167           321,275,167          321,275,167            321,275,167           321,275,167
Costs of local material                     569,006,250               569,006,250           569,006,250          569,006,250            569,006,250           569,006,250
Costs of imported component                       64,409,000                 64,409,000             64,409,000            64,409,000              64,409,000              64,409,000
Costs of imported equipment                       67,229,415                 67,229,415             67,229,415            67,229,415              67,229,415              67,229,415
Subtotal                 1,937,313,532           1,937,313,532       1,937,313,532      1,937,313,532        1,937,313,532        1,937,313,532
Cash flow – 2018
Item 1-Jan 1-Feb Total
Temporary works and site overheads                       68,624,325                 17,156,081       3,242,499,356
Costs of supervisory and managerial staff                     173,400,000                 43,350,000       5,071,950,000
Costs of skilled labour                       79,306,875                 19,826,719       2,055,369,844
Costs of unskilled labour                     594,062,500               118,319,075     13,781,756,575
Costs of construction plant                     321,275,167                 80,318,792       7,469,647,625
Costs of local material                     569,006,250               142,251,563     13,229,395,313
Costs of imported component                       64,409,000                 16,102,250       1,497,509,250
Costs of imported equipment                       67,229,415                 16,807,354       1,563,083,899
Subtotal                 1,937,313,532               454,131,833     47,911,211,861
Cash flow schedule:
Cash Flow Year-2016
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash in hand                            8,363,848,601                       6,430,079,409         4,496,310,217               2,562,541,025                         628,771,833 –                1,304,997,358 –        3,238,766,550 –      5,172,535,742 –                 7,106,304,934 –       9,040,074,126 –     10,973,843,317
Income
Mobilization                        13,847,469,416
Interim Payment                            1,730,933,677                       1,730,933,677         1,730,933,677               1,730,933,677                     1,730,933,677                  1,730,933,677          1,730,933,677         1,730,933,677                    1,730,933,677         1,730,933,677          1,730,933,677
Final Payment
Total income                        13,847,469,416                          10,094,782,278                       8,161,013,086         6,227,243,894               4,293,474,702                     2,359,705,510                      425,936,319 –        1,507,832,873 –      3,441,602,065 –                 5,375,371,257 –       7,309,140,449 –       9,242,909,640
Expenditure  
Temporary works and site overheads                           1,646,983,800                                  68,624,325                             68,624,325               68,624,325                    68,624,325                           68,624,325                        68,624,325                68,624,325              68,624,325                         68,624,325               68,624,325               68,624,325
Costs of supervisory and managerial staff                           1,040,400,000                                173,400,000                          173,400,000             173,400,000                  173,400,000                         173,400,000                      173,400,000             173,400,000            173,400,000                       173,400,000             173,400,000             173,400,000
Costs of skilled labour                              211,485,000                                  79,306,875                             79,306,875               79,306,875                    79,306,875                           79,306,875                        79,306,875                79,306,875              79,306,875                         79,306,875               79,306,875               79,306,875
Costs of unskilled labour                                594,062,500                          594,062,500             594,062,500                  594,062,500                         594,062,500                      594,062,500             594,062,500            594,062,500                       594,062,500             594,062,500             594,062,500
Costs of construction plant                                321,275,167                          321,275,167             321,275,167                  321,275,167                         321,275,167                      321,275,167             321,275,167            321,275,167                       321,275,167             321,275,167             321,275,167
Costs of local material                                569,006,250                          569,006,250             569,006,250                  569,006,250                         569,006,250                      569,006,250             569,006,250            569,006,250                       569,006,250             569,006,250             569,006,250
Costs of imported component                                  64,409,000                             64,409,000               64,409,000                    64,409,000                           64,409,000                        64,409,000                64,409,000              64,409,000                         64,409,000               64,409,000               64,409,000
Costs of imported equipment                                  67,229,415                             67,229,415               67,229,415                    67,229,415                           67,229,415                        67,229,415                67,229,415              67,229,415                         67,229,415               67,229,415               67,229,415
Subtotal                           2,898,868,800                            1,937,313,532                       1,937,313,532         1,937,313,532               1,937,313,532                     1,937,313,532                  1,937,313,532          1,937,313,532         1,937,313,532                    1,937,313,532         1,937,313,532          1,937,313,532
Cost escalation (6.8%)                              197,123,078                                131,737,320                          131,737,320             131,737,320                  131,737,320                         131,737,320                      131,737,320             131,737,320            131,737,320                       131,737,320             131,737,320             131,737,320
Subtotal                           3,095,991,878                            2,069,050,852                       2,069,050,852         2,069,050,852               2,069,050,852                     2,069,050,852                  2,069,050,852          2,069,050,852         2,069,050,852                    2,069,050,852         2,069,050,852          2,069,050,852
Subtotal cost after inflation(10.7%)                           3,427,263,009                            2,290,439,293                       2,290,439,293         2,290,439,293               2,290,439,293                     2,290,439,293                  2,290,439,293          2,290,439,293         2,290,439,293                    2,290,439,293         2,290,439,293          2,290,439,293
Head office overheads (5%)                              171,363,150                                114,521,965                          114,521,965             114,521,965                  114,521,965                         114,521,965                      114,521,965             114,521,965            114,521,965                       114,521,965             114,521,965             114,521,965
Interest rates(5.5%)                           1,884,994,655                            1,259,741,611                       1,259,741,611         1,259,741,611               1,259,741,611                     1,259,741,611                  1,259,741,611          1,259,741,611         1,259,741,611                    1,259,741,611         1,259,741,611          1,259,741,611
Total Expenditure                           5,483,620,815                            3,664,702,869                       3,664,702,869         3,664,702,869               3,664,702,869                     3,664,702,869                  3,664,702,869          3,664,702,869         3,664,702,869                    3,664,702,869         3,664,702,869          3,664,702,869
Cumulative Cash Flow                           8,363,848,601                            6,430,079,409                       4,496,310,217         2,562,541,025                  628,771,833 –                   1,304,997,358 –                3,238,766,550 –        5,172,535,742 –      7,106,304,934 –                 9,040,074,126 –     10,973,843,317 –     12,907,612,509
Cash flow schedule:
Cash Flow Year-2017
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash in hand –                      12,907,612,509 –                        15,233,504,908 –                  17,559,397,307 –     19,885,289,705 –          22,211,182,104 –                 24,537,074,503 –              26,862,966,902 –     29,188,859,300 –    31,514,751,699 –               33,840,644,098 –     32,704,669,143 –     31,568,694,188
Income
Mobilization
Interim Payment                           1,730,933,677                            1,730,933,677                       1,730,933,677         1,730,933,677               1,730,933,677                     1,730,933,677                  1,730,933,677          1,730,933,677         1,730,933,677
Final Payment                    5,192,801,031         5,192,801,031          5,192,801,031
Total income –                      11,176,678,832 –                        13,502,571,231 –                  15,828,463,630 –     18,154,356,028 –          20,480,248,427 –                 22,806,140,826 –              25,132,033,225 –     27,457,925,623 –    29,783,818,022 –               28,647,843,067 –     27,511,868,112 –     26,375,893,157
Expenditure
Temporary works and site overheads                                68,624,325                                  68,624,325                             68,624,325               68,624,325                    68,624,325                           68,624,325                        68,624,325                68,624,325              68,624,325                         68,624,325               68,624,325               68,624,325
Costs of supervisory and managerial staff                              173,400,000                                173,400,000                          173,400,000             173,400,000                  173,400,000                         173,400,000                      173,400,000             173,400,000            173,400,000                       173,400,000             173,400,000             173,400,000
Costs of skilled labour                                79,306,875                                  79,306,875                             79,306,875               79,306,875                    79,306,875                           79,306,875                        79,306,875                79,306,875              79,306,875                         79,306,875               79,306,875               79,306,875
Costs of unskilled labour                              594,062,500                                594,062,500                          594,062,500             594,062,500                  594,062,500                         594,062,500                      594,062,500             594,062,500            594,062,500                       594,062,500             594,062,500             594,062,500
Costs of construction plant                              321,275,167                                321,275,167                          321,275,167             321,275,167                  321,275,167                         321,275,167                      321,275,167             321,275,167            321,275,167                       321,275,167             321,275,167             321,275,167
Costs of local material                              569,006,250                                569,006,250                          569,006,250             569,006,250                  569,006,250                         569,006,250                      569,006,250             569,006,250            569,006,250                       569,006,250             569,006,250             569,006,250
Costs of imported component                                64,409,000                                  64,409,000                             64,409,000               64,409,000                    64,409,000                           64,409,000                        64,409,000                64,409,000              64,409,000                         64,409,000               64,409,000               64,409,000
Costs of imported equipment                                67,229,415                                  67,229,415                             67,229,415               67,229,415                    67,229,415                           67,229,415                        67,229,415                67,229,415              67,229,415                         67,229,415               67,229,415               67,229,415
Subtotal                           1,937,313,532                            1,937,313,532                       1,937,313,532         1,937,313,532               1,937,313,532                     1,937,313,532                  1,937,313,532          1,937,313,532         1,937,313,532                    1,937,313,532         1,937,313,532          1,937,313,532
Cost escalation (6.8%)                              131,737,320                                131,737,320                          131,737,320             131,737,320                  131,737,320                         131,737,320                      131,737,320             131,737,320            131,737,320                       131,737,320             131,737,320             131,737,320
Subtotal                           2,069,050,852                            2,069,050,852                       2,069,050,852         2,069,050,852               2,069,050,852                     2,069,050,852                  2,069,050,852          2,069,050,852         2,069,050,852                    2,069,050,852         2,069,050,852          2,069,050,852
Subtotal cost after inflation(10.7%)                           2,535,516,297                            2,535,516,297                       2,535,516,297         2,535,516,297               2,535,516,297                     2,535,516,297                  2,535,516,297          2,535,516,297         2,535,516,297                    2,535,516,297         2,535,516,297          2,535,516,297
Head office overheads (5%)                              126,775,815                                126,775,815                          126,775,815             126,775,815                  126,775,815                         126,775,815                      126,775,815             126,775,815            126,775,815                       126,775,815             126,775,815             126,775,815
Interest rates(5.5%)                           1,394,533,964                            1,394,533,964                       1,394,533,964         1,394,533,964               1,394,533,964                     1,394,533,964                  1,394,533,964          1,394,533,964         1,394,533,964                    1,394,533,964         1,394,533,964          1,394,533,964
Total Expenditure                           4,056,826,076                            4,056,826,076                       4,056,826,076         4,056,826,076               4,056,826,076                     4,056,826,076                  4,056,826,076          4,056,826,076         4,056,826,076                    4,056,826,076         4,056,826,076          4,056,826,076
Cumulative Cash Flow –                      15,233,504,908 –                        17,559,397,307 –                  19,885,289,705 –     22,211,182,104 –          24,537,074,503 –                 26,862,966,902 –              29,188,859,300 –     31,514,751,699 –    33,840,644,098 –               32,704,669,143 –     31,568,694,188 –     30,432,719,232
Cash flow schedule:
Cash Flow Year-2018 Year-2018 Total
Jan Feb
Cash in hand –                      30,432,719,232                     (7,608,179,808.11)
Income
Mobilization                     13,847,469,416
Interim Payment                     34,618,673,539
Final Payment 5192801031                            1,298,200,258                     16,876,603,350
Total income –                        6,309,979,550 –                          6,309,979,550                     65,342,746,305
Expenditure
Temporary works and site overheads 68624325                                  17,156,081                       3,242,499,356
Costs of supervisory and managerial staff 173400000                                  43,350,000                       5,071,950,000
Costs of skilled labour 79306875                                  19,826,719                       2,055,369,844
Costs of unskilled labour 594062500                                118,319,075                     13,781,756,575
Costs of construction plant 321275166.7                                  80,318,792                       7,469,647,625
Costs of local material 569006250                                142,251,563                     13,229,395,313
Costs of imported component 64409000                                  16,102,250                       1,497,509,250
Costs of imported equipment 67229415                                  16,807,354                       1,563,083,899
Subtotal                          1,937,313,532                               454,131,833                    47,911,211,861
Cost escalation (6.8%)                              131,737,320                                  30,880,965                       3,257,962,407
Subtotal                           2,069,050,852                                485,012,798                     50,684,161,470
Subtotal cost after inflation(10.7%)                           2,806,816,541                                657,954,802                     59,706,245,601
Interest rates(5.5%)                           1,137,977,969                                266,757,039                       2,985,312,280
Head office overheads (5%)                              140,340,827                                  32,897,740                     95,434,874,860
Total Expenditure                           4,085,135,337                                957,609,580 –                  30,092,128,555
Cumulative Cash Flow –                      10,395,114,887 –                          7,267,589,131
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18
2014-2015-2016 8,363,848,601 6,430,079,409 4,496,310,217 2,562,541,025 628,771,833 -1,304,997,358 -3,238,766,550 -5,172,535,742 -7,106,304,934 -9,040,074,126 -10,973,843,317 -12,907,612,509 -15,233,504,908 -17,559,397,307 -19,885,289,705 -22,211,182,104 -24,537,074,503 -26,862,966,902 -29,188,859,300 -31,514,751,699 -33,840,644,098 -32,704,669,143 -31,568,694,188 -30,432,719,232 -7267589131 -10395114887

 

Canadian Social History

April 20, 2016

The Canadian labor movement went through several stages during its development in order for it to be accepted by the political sector of the economy. Workers finally had their say in the economy, and the union membership became critical in the information provision during the unions’ development. The author’s work was focused on the evolution of the labor unions within Canada by evaluating the political contributions towards achieving the objective and the role played by the external unions in strengthening the movements.This paper analyzes the different aspects of Eugene’s work in the Canadian labor movement by critically analyzing the paper.

Throughout his work, the author tries to create the sense of the importance of having a stable union by highlighting the importance of the unions in fighting for the welfare of the laborers. He considers the roles played by other external unions in stabilizing the Canadian union as well as looking at the different unions formed by the small working groups within Canada. He brings out the aspect that all the good things that were expected by the workers could not be achieved on a safer way, but through struggles and support from other people.

The article addresses the historical questions of why the labor unions were important as well as how the labor unions especially in Canada came to being during the early 1800s to early 1900s among the workers. The source brings the picture of importance of combining efforts in realizing the strength of a union. The fact that all the small working groups were forming their own labor unions provided the room for weakening the major unions. The work also creates the picture of the role that external similar ideological unions can play in strengthening the unions in a broader perspective. It creates the responsibility of a legislative union constitution to guide the movement actions as well as create the mind of responsibility to the members and the protection to be awarded to all adherents for their actions.

Social history has been expressed in the author’s work through evaluation of the different aspects of organizational structure and the composition of the different units of unions within the country and the external States. The Canadian union structure is addressed through the reality indication of the leaders and the members, and the procedure for the formation was stipulated in the constitutions. It indicated the composition, the members of the union as well as showing the variation of the structure throughout the increase in popularity. In addition, it stipulated the rules and change in members by the years. It indicates the structural challenges of the unions, which showed the life span of the unions with some having short life span due to the poor structuring. The composition of different unions indicates the variation in the strength of the unions with only a large composition proving to be strong in fighting for their members. The influence of the international unions in Canada changed the structure of the Canadian unions through shifting of the structural control to the central State control (Eugene 17). The challenge resulted in the formation of different branches within the country with different organizational structures, but centrally controlled. The legislation process created the room for the amendment of the laws, development, and working principles for composition and protection.

In the important parts of his arguments, the author first focuses on the different composition of the unions due to the effect of the international involvement. The British involvement in the Canadian unions brought changes, which the author indicates in the writings. He also brought forward the compositional variation on the unions by other different countries and group involvement. In the composition of the unions, the author looks at the impressions the new composition brought to the unions, the challenges as well as the problems they created to members.

Secondly, the author brings the argument on the economic situation of the county during the revolution of labor unions. This has been shown by the writer’s indication of the economic relations and the unions’ movement actions on the development of the industrial sectors. The author shows the effirts of the working groups from small scale to the large scale working groups. He indicates the variations in the economic position of the country before and after the stable union movements.

Thirdly, the author brings into account the argument for the revival of the trade and the labor unions from all aspects of the local and national level. The room was created for skilled and unskilled labor with no disparity in the formation. The protection of the organizational groups was provided, which was a win for the organizations. The revival ensured new legislations with the provision of the new looking conditions of work, ensuring the revival of the already failing unions (Eugene 18). Despite the revival aspects, the author indicates that some of the unions ended up collapsing during the revival period. The actions also led to the unity of some different unions from different countries. Despite the benefits of these unions, the rivalry began between them, which was as a result of the reduction in the resources that could be used to run the organization. Some minor differences in ideological understanding of some aspects of the unions’ actions also brought the challenges.

Fourthly, the author brings out the argument on the aims of the movements as well as the methods used by the organizations. He argues that the aims were the guiding principles for the unions during the fight for the union achievements. He creates the tension in the minds of the workers and the union leaders especially concerning the aspects that were critical for the movement’s success. He gives the guidelines for the new coming unions to ensure a systematic follower of the methods and aims in order to achieve the objective of the unions (Eugene 9).

The author majorly uses primary sources of information in bringing out his arguments. Though he suggests further readings for the readers, he does not sufficiently provide enough reading materials within the context to provide proper argument on his ideas. The sources are majorly from the experience attained during his work and stay as well as political position arguments. Despite the reduced use of secondary sources, he expresses confidence in his arguments with facts being brought out. His work is more of the initial publication on his concept of argument, which indicates the aspects of his primary thinking and findings.

The author successfully supports his arguments through the provision of the related articles towards his actions. However, the author does not provide secondary sources, which shows the originality of his work. This is an indication of anobserved and correctly maintained arguments from experience. The argument of the author convinces me especially on the way he supports his arguments on the issues he brings forward from the primary source aspects. The fact that he provides further readings is an indication of the surety with his work, which convinces me further on his argumentative support of the issues brought forward.

The information provided is well structured, managed and valid to support and drive away all the doubts that can be raised concerning the article. The source only raises question of the chronological arrangement of events as individual actions and findings can be mismatched. However, the author organizes them in a way that they show chronological order. I support fully all the arguments adequately since they are well defended. There can never be any perfect provision of the information, but a good percentage of perfection is possible, indicating the reality of the information provided. The author provides a big percentage of clarity and support of the arguments, qualifying it to be a reliable and well-structured source that calls for full support.

The paper has indicated some aspects of the evolution of the unions and the challenges, which were critical for the development of the unions in attaining their objectives. From the discussion, all the arguments brought forward by the writer have been exhaustively discussed, and the argument clearly shows the justifications. The understanding of the Canadian process of the union by the author was the driving force for letting out the information of the unions’ actions and activities within Canada. All the process practiced and brought forward by the writer should provide the readers with the urge to create and make all the relations achievable.

 

 

 

 

 

 

Works cited

Eugene, A, Forsey. “The Canadian Labour Movement 1812-1902.” The Canadian Historical Association 27 (1974): 1-20.

 

 

Book Review: The Canadian labour movement, 1812-1902

April 20, 2016

The Canadian labour movement, 1812-1902 is a book written by Forsey, Eugene Alfred and published in the Canadian Historical Association in 1974. The document majorly looks at the changes in the Canadian labor movement from 1812 to 1902. The author shows the different changes that have occurred to the unions since their establishment to the current unions that exist in Canada (3-5). The paper tries to answer questions such as; what are the major changes that occurred through the years from 1812 to 1902 to the Canadian labor unions?  Other questions that are answered by the paper include:

  • What were the main functions of the American federation of labor.
  • What were the major aims of the labor unions?
  • What were the methods that were used by the labor o?
  • What exactly were the outcomes of the labor unions during that period of time?

The paper aims at giving the history of the labor unions in detail, the unions that were formed during this time, the people who were involved in these unions, why the unions were formed and the role that the unions played among the employees between 1812 and 1902 (Forsey 3-6).

The paper shows that during this time, the employees had their own types of structures. They formed the unions for different reasons. The unions fought for their rights, ensured that there were good working conditions and ensured that the employees were paid well by their employers (Forsey 11-16). Looking at the history of the labor unions in Canada, the paper has managed to show how the unions evolved, the achievements and the downfalls that they had as well as their roles and the different methods that they used to ensure that their aim is achieved.

The author has divided the paper into different parts to help in supporting his argument in a logical manner. The author talks of the early unions in Canada that existed about 160 years ago under the Canadian Labor History (Forsey 3). During that time there were many unions that were formed by different employees with different skills such as the tailor’s societies. Other smaller unions that existed include the masons, bricklayers, carpenters and even the shoemakers union (3). These unions were however, short-lived. There were unions that lasted for so long that they even exist in the present century.

After talking about the early unions, the author looks at the international unions. It is during the rise of the international unions that the Canadian Unionism Center moved to the central part of Canada (4). Some of the small early unions merged to form the international unions. Of all the international unions that existed, the most important unions were the locomotive engineers, the typos coopers, Crispin’s and the cigar makers. One of the largest and most influential unions was the Toronto assembly (5). It was the reason for starting the first national central body.

The author also looks at the Canadian labor union. This was the national central body which was organized in 1873, during a time that the unions in the country were about 100 (5). The first union however had delegates from only fourteen of the unions. The union was hit by the economic conditioned of Canada during that time. However, some of the unions survived including the branches of the international unions.

The most spectacular feature which is the knights of labor is also discussed in this paper. This was a holy and noble order that was founded in the United States in 1869 and had district assemblies in that country and the other countries such as Australia Britain, Ireland and even the New Zealand (7-10). The knights were the ones responsible for the organization of the men and women who were unskilled and the small town workers. The knights were also the ones who were responsible for coming up with the first Winnipeg and the Montreal trades as well as the labor councils (9-10). It was also responsible for the second central labor union in the nation. Another part was the labor council and the trade unions. The central organizations were revived with the fresh burst of the organizing activities. The local and the central bodies started calling themselves the labor and trade councils. The author documents the changes that took place within the labor unions during the years leading up to 1902 (11).

The paper does not exclude the federal unions that existed during that time. The author notes that federal unions spread into Canada because of different reasons (12). One reason is because the American industry was moving into Canada. The American workers could work across the line if the Canadian workers could not organize themselves. The threat of the dual unions is also a reason why it was a rival.

After giving the history of the labor unions, the author looks at the aims of the unions during the period 1812 to 1902 (6-15).  The main reason according to the article was for the employees to get more of what they needed. First, they needed more money and as a result formed the unions to demand higher payments. Secondly, they needed more leisure and more time for themselves and their families. The unions fought for the employees and ensured that there was collective bargaining, overtime, extra pay and the higher rates (12-13). Lastly the author looks at the methods that were used by the unions to achieve their aims and the achievements that the unions had.

It can be deduced that the author has used different sources of information to deliver his message. First, he uses different articles on the history of Canada. This article contains the social economic as well as political changes where the labor sector is involved. Using this type of information, he gives a detailed account of what happened over the years from 1812 to 1902. Past research papers have also been used to come up with this paper.  There are several research papers such as Canada investigates industrialism that have been used by the writer to support the main argument of the development of the labor unions over time. Books were also used in this study, especially those that have been written on the Canadian history of the labor unions. Socialism books were also used as sources to support the main arguments. This is because labor force is part of socialism.   There were articles that were written by the unions as well as the reports that were written by different people on the Canadian unions over the years. Reviews such as the Canadian historical reviews were also used to support the main historical facts about the labor unions revolution since 1882 to 1902. All the resources that the writer used were very relevant and they effectively supported the main arguments of the article.

The author supports his argument adequately. Just before he gives the aims of the unions and the methods that the unions used to achieve their aim in Canada, he gives the history of the unions in a step by step manner. Through the history, the author shows how the unions moved from simple unions among the workers to the international unions. He highlights the unions that survived to the present unions, the challenges they faced and how they pulled through.

The author argues effectively because of the credible sources and information that he presents. Thus, the information is presented in a logic manner. The detailed information given by the writer convinces the audience that the topic was well researched as the main argument is well presented.

In conclusion, it is worth to note that for this book, the author presents a clear aspect of life in duration of 160 years. The sources used are credible considering the time that they were published and the way he has extracted the information from those sources. The questions that the document raises however, are the questions like, how did the unions solve the problems that they encountered? What were the negative outcomes of the employees getting into the trade unions?  Why did some of unions not reach the current century? Therefore, this is a document that is well researched and presented. The writer uses relevant and up-to-date sources to support his main arguments. Despite the questions that arise, the document is convincing.

 

 

 

 

 

 

Work Cited

Forsey, Eugene Alfred. The Canadian labour movement, 1812-1902. Canadian Historical Association, 1974.

 

Discussion topics

April 19, 2016

Discussion 5

There are different kinds of funding sources that are reviewed in chapters seven and eight of my course text. I have considered the types of funding sources the development organizations discussed in this chapter’s use. There are various funding sources for both profit and also non-profit making organizations at both convectional and also non-convectional levels. Convectional sources are the one that exists mostly and the ones that are donor based while non- conventional sources are the ones that are inclusive of alternative fundraising for organizations. The two types of funding sources particularly occur in non-profit making organizations.  Debt and also equity finance are used as funding sources of profit making organizations. Debt is inclusive of loans and overdrafts that are meant to be repaid. In equity financing, the investors take a stake in a certain firm that entitles them to shares in the rewards or risks of the organization. Loan financing is flexible form of funding that is quicker and also easier to secure than grant funding.

Funding is essential in implementing desired programs of an organization. Funding affects the implementation of a program either in a positive or a negative manner depending on the effectiveness or efficiency of the funding process.

Funding determines the areas that need to be upgraded, strengthened and also modified. It also facilitates distinct modes that better fulfill the requirements of the clients of the organization. Efficient funding processes assist an organization in adapting to new environments, changing technology and also shift in the external variables so as to efficiently use the funds available. Funding an organization identifies whether goals and also objectives that were originally established have been achieved together with the expected effects and also impacts.

There are mechanisms that have been put in place to evaluate the way implementation of programs progresses in an organization that aligns with the overall goals. There are several mechanisms such as economic impact, impact evaluation, analytical evaluation, operative evaluation, traditional evaluation and also personnel evaluation. Through these mechanisms too funders determine whether the programs implemented to align with the overall goals.

Reference

Missoni, E., &Alesani, D. (2013). Management of international institutions and NGOs:

Frameworks, practices and challenges. New York, NY: Routledge.eference

Skoll World Forum. (2014a). Embracing complexity—Effectively evaluating both models and

adaptive initiatives [Video file]. Retrieved on 6th April 2016

fromhttp://skollworldforum.org/session/skoll-world-forum-2014/lunch-grabgopanelsessions-delegate-led-discussions-or-informal-networking-2/embracing-complexity-effectively-evaluating-models-adaptive-initiatives/?play=embracing-complexity-effectively-evaluating-models-adaptive-initiatives#videos

Discussion 8

NGOs foster organization models cross-cultural leadership. It involves cross-cultural leadership in its planning and evaluation. It can be said to be inclusive through investing in leadership development regardless of the beliefs that leaders are born or made. The company also creates a culture of collaboration by rewarding individual success by developing leaders working as a team to bring other workers up and into the circle of leadership. As a result of globalization, the company develops communication skills by countering the communication skills that vary according to regions of location. The company HR also has ways of being human and also rewarding emotional intelligence.

The overall mission of NGOs needs the organization practice a cross-cultural leadership. The company in the process is trying to develop relevant skills in developing managerial effectiveness through time management, prioritization, decision making, strategic thinking and also getting up to speed with the job. The HR advocate on inspiring or motivating employees for their job satisfaction and a smart working. There are also mentoring and coaching programs for the development of employees. The company looks forward at managing internal stakeholders and also politics by providing managerial support in relationships, politics and organizational picture.

References

Gentry, W., Eckert, R., Stawiski, S.,& Zhao, S. (2014). The Challenges Leaders Face Around the World: More Similar Than Different [White paper]. Greensboro, NC: Center for Creative

Leadership. Retrieved 6th April 2016 from

http://www.ccl.org/leadership/pdf/research/ChallengesLeadersFace.pdf

Discussion 11

The most critical things that I have studied from the course are inclusive of external environment impacts on the emergence of particular types of transformational leadership. I have learned of ways of developing conceptual models and the extant literature on the environment and how transformational leadership in international organizations was used. Through the course I have learned the significance of leaders working with their juniors in recognizing the required change, designing visions to guide the change through inspiration and also modes of executing changes in tandem that consists of committed members of the group. In line with the course, I have come to realize the reasons why organizations need transformational leaders.

Out of the course, there are ways that I will implement the ideas I have learned concerning transformational leadership in international organizations after I leave the course. I will be much-oriented ion the greater good on transformational leadership.  It is as a result of how most scholars and also employees assume that transformational leader’s changes are always positive and that they are always good. I will emphasize on the good when teaching the young and also when leading in organizations. Though at this perception there is an exclusion of those leaders that worsened situations in the world.

My perception to solve global problems has changed after learning the challenges of international organizations. A significant way of looking at transformational leaders is by judging by changes made and whether they improved the organization on worsened its situation. Transformational change does not always mean that the organization will necessarily prosper. In some situations, the transformational efforts lead to the destruction of those taking up the call. In most situations they make things better and at times they can make things worse.

Reference

Avolio, B. J., & Yammarino, F. J. (Eds.). (2013). Transformational and charismatic leadership:

The road ahead. Emerald Group Publishing.

International Business Strategy for Brighton Mobile TV

April 12, 2016

Introduction

Brighton Mobile TV is involved in the manufacturing of TV sets that are installed in the cars and boats in the market of United Kingdom. However, with the augmenting competition, the organization has witnessed the business going down. The organization has not really achieved the economies of scale and hence does not enjoy a cost advantage in the market place. Taking this into consideration, the augmenting competition is becoming even a bigger challenge for Brighton. International business is a field that helps an organization in foraying into the international markets. The entry in these host countries can be done with the help of direct means such as organic growth, mergers, joint ventures etc or the entry form could be indirect in the form of exporting the products to the host countries. The international business activities may assist the organization to sell the products to the global consumers thereby gaining a high market share.

This research work will focus on understanding the reasons for the internationalization of Brighton bearing in mind the differences between the domestic and international business activities. This research work will also focus on recommending an emerging market to Brighton where the organization can establish its business activities. Lastly, the research work will seek to create a FDI strategy for the organization that may assist it to foray in the emerging market by highlighting the challenges that it is most likely to face in the near future.

During the course of this research work, the researcher will focus on secondary researcher. Hence, the relevant facts, figures and information to support the research work will be derived from the academic books, journals, magazines and newspapers etc.

 

International business activities for Brighton

As already mentioned, Brighton is not performing very well because of the heightened competition in the UK markets. Hence, following are some of the reasons because of which Brighton should enter into the field of international business. Firstly, the organization will be in a position to diversify its risk. This implies that the organization will be selling its products to the consumers of the host countries as well and hence the falling demand in the home country may not have a devastating effect on Brighton. If the organization only operates in the home country then regularly falling demand may even lead to a business failure and hence an international business strategy is recommended to the organization. Secondly, the organization will be able to create a better brand image in the global markets and hence the benefit of a global brand image may assist it to overpower the competing brands in the home country also. According to Azad (2009), it has been seen in the past that the organizations that operates in the global markets also enjoy an edge over the competing brands in the home country. This is mainly because they are able to create a better trust factor and are considered as experts in their field. The same reason may also drive Brighton to enter in the host countries.

Thirdly, by entering into the host country, Brighton will be in a position to maximize its number of customers, sales and profits (Mooij, 2003). At present, the organization is only operating in UK and hence entering the emerging markets may prove to be highly beneficial for Brighton during the turbulent times. Fourthly, the international business activities may also help the organization to gain the benefits of economies of scale. This is mainly because by operating in the host countries, the organization will also increase its production activities and hence it may provide the organization with the benefits of economies of scale. This, in turn, will enable the organization to become a cost leader in the market and give the price benefit to the customers as well. Lastly, another reason for entering the host countries and undertaking the international business activities is gaining a sustained growth (Aaker, 2000). Since the organization will be able to enhance on its business performance by starting its operations in the international markets, it will be in a better position to sustain its growth for a long time.

The main difference between the domestic marketing and international marketing for Brighton is the transformed business environment. The organization is already operating in the market of UK and is well aware of the entire business scenario, consumers, competition etc. However, in the host countries, each and every element of the business is new. Hence, it may become difficult for the organization to operate. The only manner in which these differences between the domestic and host countries can be tackled effectively is by adopting an adaptation approach. This is a business strategy under which the organization can make changes to its existing business strategies in reference to product, price, place and promotion as per the tastes and preferences of the consumers of the host countries. For instance, when McDonald’s entered the Indian market in the year 1996, it was not really aware of the Indian consumers and their needs. The organization introduced its famous beef burger in India. However, the consumers agitated against this decision because the Indian religion does not allow the people to eat beef products. Hence, the consumers boycotted McDonald’s. In the year 1997, the organization conducted a detailed research on the Indian consumers and found that approximately 60 percent of the Indian consumers are vegetarian (Blythe & Megics, 2010). Taking this into consideration, the organization introduced an entirely new menu for the consumers that had all the vegetarian products. This influenced the consumers to purchase products from McDonald’s and today it is one of the very dominant brands in the Indian fast food industry. This is a classic example of adaptation under which a multinational organization changed its entire product strategy to suit to the needs of the Indian consumers.

Recommended market for Brighton Mobile TV

It is a very evident fact that numerous emerging markets may provide an invaluable opportunity to Brighton to establish its business opportunity. According to Baker (2000), usually it has been seen that the multinational organizations first eye the developing countries as their business resources can be utilized in a better manner in these countries. This implies that the multinational organizations may not enter the developed country because of the already existing high competition in these countries. Similarly, the under developed countries may not provide a high market potential to the multinational companies in the form of consumer demand and purchasing power (Thorpe, 2012). Hence, numerous multinational companies have preferred the developing countries as they offer a high growth to the companies and enable them to reap the benefit of international business activities. Following is the 12 C’s analysis of six developing countries that will throw light on their market potential –

12Cs Framework

India Japan Africa Brazil China Russia
Country Developing economy Strong economy Political instability Growing economy Booming economy Growing economy
Consumption Large readership  107m Large readership 91% Growth in paid-for newspaper readership Growth in paid-for newspaper readership Research required Research required
Concentration Low high Low Research required Medium
Channels Research required Research required Research required Research required Research required Research required
Capacity to pay for GDP $4.1 trillion 9% change; GDP is $5.07 trillion; 11% decline in press advertising in Asia GDP low depending on country GDP $2.023 trillion; .02% GPD high

$4.9 trillion; 9.8% change

GDP

$1.477 trillion; 4% change)

Currency Rupee Yen Various Real Yuan Ruble
Contractual agreements Research required Strong Research required Research required Risk of copy-cats IP will be an issue
Choices
Culture-buyer behaviour Medium; language & cultural differences High; high-context society High; language differences Low; Language a barrier yet modernised High;

Fastest growth in M&E industry

Low
Caveats
Sales potential

Size of market

107m Pop. 127m

115m (91%)

Pop. 680m Pop. 193m Pop. 1.3b Pop. 141m
Essential the product is (5% of market) (5% or readership) (1% of population) (5% of population) (1% of population) (5% of population)
Sales $2.5b $5.25 $3.4b $4.8b $6.5b $3.5b
Competition Low High Low Medium High Medium

*The highest growth will be in M&E market in Asia-Pacific

** Japan currently has 3% of readership market

Sales potential: when calculating sales potential the following have been taken into account: price of product; amount of money spent on promotion; essential the product is to users; overall size of market; competition

 

Short-term opportunities: Japan ‘s highest readership will provide an attractive market, and its advanced economy; the easiest route to market; however vast cultural differences pose a challenge that needs to be addressed first.

 

Long-term opportunities: China, Asia and foreign markets that involve substantial product enhancements (language) and new distribution networks, opportunities for scale of economies and new manufacturing base for CA; localise manufacturing

 

Source: IMF report, 2014

 

Market attractiveness –

Low           Company strength        High
Japan$1.8b

Invest for growth

USA
$16b
UK
$9.4b

Invest for growth

Manage selectively

 

 

 

Vietnam
$6b

Invest for growth

China $6.5b
Brazil $4.8b
 

 

 

 

Manage selectively

 

 

 

Harvest/

withdraw

Russia $3.5b

 

 

 

 

Manage selectively

India $4.5b

 

 

 

 

Manage selectively

 

 

 

 

 

Harvest/withdraw

Current markets:

Europe is stronger than America; Nordic Countries, Switzerland, Portugal all have avid readers similar to Japan showing potential for further growth; although print advertising is declining in Easter and Western Europe (19%, 26%) and USA 20%  new opportunities may exist for digital media

 

Source: Azad, 2011

 

 

Taking the above figures into consideration, it can be very well said that India is one of the most suitable markets for Brighton at present. It is a much known fact that India is considered as one of the fastest developing economy of the world. Following is detailed PEST analysis of the Indian markets that will further throw light on its attractiveness for Brighton –

Political and legal factors – The present BJP government in India is highly in favor of FDI. Prime Minister Narendra Modi is very much inclined towards the growth of the manufacturing sector and hence there are not many political or legal restrictions on the manufacturing companies (Sharma, 2014). Such organizations can easily enter the Indian markets and start their business operations. However, the high taxation rates and a 33 percent tax may prove to be a little hurdle for Brighton

Economic factors – India is a fast developing economy that is growing at a rate of 9 percent and as per the government, this growth rate will be maintained for the next 2 – 3 years as well (Sharma, 2014). The per capita income and the purchasing power of the consumers are also quite high and hence Brighton might easily its product in India. According to a Nielson report (2013), the consumer confidence index is also very high for the Indian market

Socio cultural factors – India has favorable demographics that may provide the organization with a valid opportunity to expand in the market (Solis, 2011). The consumer demand for such leisure products is very high and they are highly inclined towards making a purchase decision from the multinational brands (Assael, 2002). Also, the consumers of India are considered as ‘innovators’ or ‘experimenters’ which is a positive sign for the company. This implies that the consumers are very much inclined towards experimenting with the new brands that enter the Indian market. It should also be mentioned here that the country of origin effect may have a positive impact on the consumer behavior in India (Azad, 2011). This implies that the Brighton is a brand from United Kingdom which is known as a developed country. Hence, the consumers in India may be highly inclined towards making their purchase decisions from Brighton as they will perceive the organization in positive lights.

Technological factors – India is considered as a technologically advanced country. All the basic technologies that are required in the manufacturing sector are easily available in India and hence this will not create any hurdles for the organization (Caywood, 2012).

Taking the PEST analysis into consideration, it can be very well said that India is one of the most suitable markets for Brighton to enter and start the business operations.

Challenges for Brighton in India

It should be mentioned here that Brighton may face several challenges in the Indian markets as well. Some of these challenges are –

Firstly, the organization has to understand the complex consumer behavior of the India consumers (Needham, 2012). In the last few years, different trends have been seen in the Indian consumers. Till 2006, it was seen that the Indian consumers are very price conscious and wants to purchase their products from an organization that offers at a low price (Sharma, 2014). However, in the last few years, it has been observed that the consumers are highly materialistic in their approach and focus on making their purchase decisions from well renowned brands even if they are available at high prices (Sharma, 2014). Going forward, understanding the consumers and their behavior might prove to be a daunting task for the organization.

Secondly, the heightened competition in India may also prove to be a big challenge for Brighton in India (Procter, 2000). It should be noted that Brighton is not performing well in UK because of the high competition and the organization may face a similar situation in India as well. In the past, it has been seen that the domestic competition in India may also undertake negative marketing strategies or flanking attacks on the multinational companies to spoil their brand image (Kotler, 2012). Although this is considered as unethical but it is a big trend in India (Crane & Matten, 2007). Therefore, this may also prove to be a big challenge for the organization. Hence, to overcome such a situation, the organization should have sound strategic management.

Thirdly, the relevance of the marketing strategies is very high in the Indian markets (Fill, 2002). This is mainly because the marketing strategies may enable a new organization to reach out to the target audience, spread awareness about their products and services, persuade them to make a purchase decision and remind about the products and services repeatedly (Ellwood, 2002). However, understanding the kind of marketing strategies in India in reference to the promotional strategies, segmentation, targeting, positioning strategies etc is a difficult task for Brighton (Slater, Hult, and Olson, 2010)

Lastly, the dynamic marketing environment may also pose a big challenge for the organization in the Indian markets. As studied during the course of this research work, the political, social, economic and technological factors are very much in favor of Brighton (Frost, 2015). However, these forces may quickly change in the short term as well and then it may create problems for Brighton. Hence, a regular marketing research is required to make sure that a regular track is kept on the marketing environment (Randall, 2001).

FDI strategy for Brighton

Foreign direct investment strategy is the process through which a multinational organization invests in the host countries. For Brighton, it is highly recommended that the organization should enter into a joint venture with an Indian organization such as the Future group, Tata, Reliance etc. Joint venture is a long term agreement between two companies under which the legal entity of both the companies survives and they agree to share the profits and losses that arise out of the agreement. In the last few years, the trend of joint venture has been very successful in the Indian markets. Multinational organizations such as Starbucks, Tesco and many others have invested in the Indian markets through the route of a joint venture. Hence, this format has proved to be highly effective.

The main benefit of Brighton by entering in a joint venture in India is associated with the comprehension of the technical knowhow of the Indian markets (Baker, 2010). This implies that the Indian markets are quite complex and hence understanding many elements of operations in India is quite a daunting task. However, if a big organization is in a joint venture with Brighton then it might become easier for the organization to comprehend the Indian markets and the manner in which the business strategies are to be undertaken. For instance, the local partner of Brighton can provide knowledge about the locations through which the selling of the products can be done or it may assist the organization in shaping the entire supply chain network for the smooth flow of the products.

Also, by entering into a joint venture, Brighton will not have to invest a huge amount of money in starting its business activities in the Indian markets. This is mainly because the cost will be divided between both the partners in the joint venture. This will reduce the risk of operations in India and may provide high sustainability to the organization. Lastly, a joint venture agreement may also assist the organization in getting a relief in the taxation systems. As already mentioned, the multinational companies have to pay 33 percent taxes to the government on their revenues. Also, the Indian legal system follows a double taxation system which is very hard for the multinational organizations to bear. However, by entering into a joint venture, such restrictions can be easily waived off. Hence, investing in the Indian market and entering through a joint venture with a local partner may prove to be highly beneficial for Brighton.

 

Conclusion

From the above discussion, it is very much evident that international business is one of the highly crucial fields for the organizations today. The domestic markets may get highly competitive or may get saturated and hence foraying in the host countries may assist an organization in gaining a sustained growth (Czinkota and Ronkainen, 2002). The same strategy has been recommended to Brighton during the course of this research work. It was found that India is one of the emerging markets that may provide an invaluable opportunity to the organization to expand. However, there are several challenges in the form of complex consumers, marketing environment, competition and many more that Brighton may face in India (Mooij, 2003). Taking this into consideration, it is highly recommended that the organization should enter into a joint venture with an Indian organization such as the Future group, Tata, Reliance etc. In the last few years, the trend of joint venture has been very successful in the Indian markets (Cornelissen, 2004). Multinational organizations have invested in the Indian markets through the route of a joint venture. Hence, this format has proved to be highly effective. Therefore, the same can be followed by Brighton as well to make sure that it is successful in its international business activities.

 

 

 

 

References

Aaker, D. (2000). Brand leadership, The Free Press

Assael, H. (2002). Consumer Behaviour and Marketing Action, 4th Edition, USA: PWS-Kent

Azad, P. (2009). Retail Management, APH Publishing Corp

Azad, P. (2011). Marketing Management, APH Publishing Corp, New Delhi

Baker, M. (2000). Marketing Management and Strategy, 3rd edition, Macmillan Business.

Blythe, J. (2001). Essentials of Marketing, 2nd edition, Prentice Hall

Blythe, J. & Megicks, P. (2010).  Marketing Planning: Strategy, Environment and Context. Harlow: Pearson Education Limited

Baker, M.J. (2010). Marketing: Philosophy or Function? In M.J.Baker & M.Saren (Eds.). Marketing Theory: A Student Text 2nd Ed. (3-25). London: Sage Publications Ltd.

Caywood, C. L. (2012). The handbook of strategic public relations and integrated communications, 2nd edition, McGraw-Hill
Cornelissen, J. (2004). Corporate Communications. Theory and Practice, Sage.
Crane, A. & Matten, D. (2007). Business Ethics: A European Perspective (second edition), Oxford University Press.
Czinkota and Ronkainen. (2002). International Marketing, Thomson South-Western

Ellwood, I. (2002). The Essential Brand book, Kogan Page Limited

Fill, C. (2002) Marketing Communications, Contexts, strategies and applications, Prentice Hall

IMF report. (2014). GDP growth rates of the world retrieved from http://www.imf.com

Mooij. D. (2003). Global Marketing and Advertising, Understanding Global Paradoxes, Sage

Nielson report, (2013). Global consumer confidence index, Neilson

Frost, S. (2015). What elements must be taken into consideration when developing the communication policy designed for European market?. Houston Chronicle

Needham, D. (2012). Business for Higher Awards. Oxford, England: Heinemann.

Kotler, P. (2012). Marketing Management. Pearson Education. p. 25.

 

Mooij. D. (2003). Global Marketing and Advertising, Understanding Global Paradoxes, Sage

Proctor, T. (2000). Essentials of Marketing research, UK: Financial Times-Prentice Hall

Randall, G. (2001). Principles of Marketing, 2nd edition, Thomson Learning

Sharma, S. (2014). A comparative analysis between different economies, The marketing masterminds journal

Solis, B. (2011). Engage!: The Complete Guide for Brands and Businesses to Build, Cultivate, and Measure Success in the New Web, John Wiley & Sons, Inc. pp. 201–202.

 

Slater, S., Hult, G. and Olson, E. (2010). Factors influencing the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness. Industrial Marketing Management, 39(4), pp.551-559.

Thorpe, P. (2012). Expansion strategies for multinational companies, Harvard Business Review