Monday, March 30, 2020
Nestle Group free essay sample
On Nestle International Ltd MGT: 141 Principal of management Prepared For: Afrins farid Assistant Professor Faculty, Business Administration Prepaid By: Km Iftakharul huq| 12310527| Nusrat jahan| 12310305| Estiaq hasan| 12310312| Israt sharmin| 12310217| Farzana sultana| 12310219| Rakib hasan| 12310532| University of Information Technology amp; Science (UITS) Contents December, 12, 2012 To, Afrins farid Assistant Professor Faculty, Business Administration University Of Information Technology amp; Science Subject: Submission of a report. Dear Madam, With due regards and respect we state that we are very thankful to you as you assigned us this report on ââ¬Ëââ¬â¢Management in Nestle International Ltdââ¬â¢Ã¢â¬â¢. it is a great opportunity for us to acquire the theoretical amp; practical knowledge about five functions of management in Nestle International Ltd which is a reputed multinational organization . we have tried our best to gather what we believe to be The most complete information available. Sincerely THE MANAGER 2. History Nestle the worlds largest food group, not only in terms of its sales but also in terms of its product range and its geographical presence: Nestle covers nearly every field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. We will write a custom essay sample on Nestle Group or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page We are also a major producer of pet food. In most of these product groups and in most markets, Nestle is the leader or at least a strong number two. We are a very focused Company, with more than 94 percent of the sales coming from the food and beverage sector. Nestle is present around the globe, on all continents, with around 230,000 people working in more in an 84 countries with 466 factories and with sales representatives in at least another 70 countries. Many of our brand names are familiar to you: Nescafe, Nido, Maggi, Polo, Smartest, Milo, Perrier, Friskies, KitKat, Crunchâ⬠¦. Some of our products have broken records: 3,000 cups of Nescafe are consumed every second. and KitKat merited an entry in the Guinness Book of World Records as the worlds best-selling chocolate bar with 418 KitKat fingers eaten every second around the world! Nestle management provided their employees functionally with good environment, they also influences their employees various facilities like Healthy Salaries, increments. We are acquired more experience to research and analysis this report, that help us future job performance. We create this by Microsoft office 2007. Finally, we thanked those people who are help through valuable information of as. Also thanks our honorable Teacher Afrins farid for her guideline 2. 1Background of the Report: Management is a phenomenon. It is a very popular and widely used term. All organization are involved in management because it helps and directs the various efforts towards a definite purpose. We are student of BBA program, our principal of management Afrins Farid Assigned as to prepare a report on ââ¬â¢Management in Nestle International Ltdââ¬â¢Ã¢â¬â¢. We have made a survey for required information in Nestle official site in net. We have selected our topics as ââ¬â¢Management in Nestle International Ltdââ¬â¢Ã¢â¬â¢. We have prepared our report on December 07, 2012 which will be submitted by December 12, 2012. . 1. 2Objective: The report aims to provide information on suggest more valuable information a report on ââ¬ËManagement on Nestle International Ltdââ¬â¢. The objective of Nestle is to gain more market share and become the global market leader in the Food and Nutrition industry. The company has to experience a hardship in order to sustain that position especially to stay ahead of Cadbur y. It is because that Cadbury is being acquired by Kraft food which is the world leader in the chocolate business. Nestles business objective, and that of management and employees at all levels, is to manufacture and market the Companyââ¬â¢s products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, business partners and the large number of national economies in which Nestle operates; 1. 2 Management. Objectives: The report aims to provide 3Primary employee motivated effected by the Nestle International Ltd though information on suggest more valuable information to how the 1. 2. 1Scope of the study: There is a certain boundary to cover this report. Our particular report only covers on how the ââ¬ËManagement on Nestle International Ltdââ¬â¢. we mainly focus five function of business amp; managerial skills. 1. 2. 2. Limitation of the study: We are lucky enough to get change to prepare a report on ââ¬ËManagement on Nestle International Ltdââ¬â¢. We tried heart amp; soul to purpose a well-informed a report. But unfortunates we faced some difficultiesââ¬â¢ when preparing this report. We tried to overcome the difficulties. In spite of trying our level best some difficulties that hamper our schedule report work. The employee of regional office of Bangladesh was too busy of their work. For this, they did not sufficient time to fulfill our queries and some of them neglected us to support. 1. 2. 3. Difficulty in collecting data: Many employers of the organization were not well known about all information that we asked them. Many of them also hesitated to answer the questions. These things humped the information collection. 1. INTRODUCTION Nestle with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestle and is today the worlds leading nutrition, health and wellnessà Company. Sales for 2007 were CHF 107. 6 ban, with a net profit of CHFà 10. 6 bn. We employ around 276à 050 people and have factories or operations in almost every country in the world. The Companys strategy is guided by several fundamental principles. Nestles existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. The Nestle Addresses navigation at the top of this page will give you access to Nestle offices and websites around the world. We demonstrate through our way of doing business in all the countries where we are present a deep understanding of the local nature of nutrition, health and wellness; we know that there is no one single product for everyone our products are tailored to suit tastes and habits wherever you are. 1. 1Nestle at a glance: Nestle S. A. Industry Food processing Founded Anglo-Swiss Condensed Milk Company (1866) Ferine Lactee Henri Nestle (1867) Nestle and Anglo-Swiss Condensed Milk Company (1905) Founder(s) Henri Nestle, Charles Page, George Page * Henri Nestle endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird * protecting her young, became the Companys logo and a symbol of the Companys care * and attitude to life-long nutrition. The Nestle nest represents the nourishment, security and sense of family that are so essential to life. * Headquarters Vevey, Switzerland * Area served Worldwide * Key people Peter Brabeck-Letmathe (Chairman) Paul Bulcke (CEO) * Products Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods) * Revenue CHF 83. 64à billion (2011) * Operating income CHF 12. 53à billion (2011) * Profit CHF 9. 487à billion (2011) * Total assets CHF 114. 09à billion (2011) * Total equity CHF 58. 27à billion (2011) * Employees 328,000 (2012) * Website www. nestle. com 1. 1. 2 KEY DATES 1866| à | Foundation of Anglo-Swiss Condensed Milk Co. | 1867| à | Henry Nestles Infant cereal developed| 1905| à | Nestle and Anglo Swiss Condensed Milk Co. new name after merger)| 1929| à | Merger with Peter, Cailler, Kohler Chocolats Suisses S. A. | 1934| à | Launch of Milo| 1938| à | Launch of Nescafe| 1947| à | Nestle Alimentana S. A. (New name after merger with Maggi)| 1948| à | Launch of Nestea and Nesquik| 1969| à | Vittel (initially equity interest only)| 1971| à | Merger with Ursina-Franck| 1973| à | Stouffer (with Lean Cuisine)| 1974| à | LOreal (associate)| 1977| à | Nestle S. A. (new company name)| | à | Alcon (2002: partial IPO)| | | | 1981| à | Galderma (joint venture with Lââ¬â¢Oreal)| 1985| à | Carnation (with Coffee Mate and Friskies)| 986| à | Creation of Nestle Nespresso S. A. | 1988| à | Buitoni-Perugina, Rowntree (with Kit Kat)| 1990| à | Cereal Partners Worldwide (joint venture with General Mills)| 1991| à | Beverage Partners Worldwide (joint venture with Coca-Cola)| 1992| à | Perrier (with Poland Spring)| 1993| à | Creation of Nestle Sources Internationals (2002: Nestle Waters)| 1997| à | Creation of Nutrition Strategic Business Division (2006: Nestle Nutrition)| 1998| à | San Pellegrino and Spillers Pet foods| | à | Launch of Nestle Pure Life | 2000| à | Power Bar| 2001| à | Ralston Purina| 2002| à | Scholler and Chef America| à | Dairy Partners Americas (joint venture with Fonterra)| à | à | Laboratories inneov (joint venture with Lââ¬â¢Oreal)| 2003| à | Move pick and Dreyers| 2005| à | Wagner, Proteika and Musashi| 2006| à | Acquisition of Uncle Tobyââ¬â¢s and Jenny Craig. Creation of Foodservices Strategic Business Division| à | à | Lactalis Nestle Produits Frais (associate)| | à | Jenny Craig, Uncle Tobyââ¬â¢s and Delta Ice Cream| 2007| à | Acquisition of Novartis Medical Nutrition, Gerber and Henniez. | à | à | Re-launch of Foodservices as Nestle Professional. | à | à | Partnership with luxury chocolate maker Pierre Marcolini. 1. 1. 3 Vision Beyond sound nutrition, the future of foods will increasingly be driven by science. Nestle scientists are looking ahead to the foods of the future. Nestleà Ramp;Dà is translating nutrition and food science in two ways: * From consumer needs into research priorities * From emerging science into consumer benefits, and services. The vision of Nestleà Ramp;Dà is long term. 1. 1. 4 Mission At Nestle, we believe that research can help us to make better food, so t hat people live better life. Good food is the primary source of good health, so we are trying to make good food. To provide fresh and pure products to the customers, we introduced (SHE) Safety, Health and environment policy to protect health of our employs and keep clean our surrounding environment. 3. Senior Management: The executive board, a distinct entity from the board of directors, includes: * Peter Brabeck-Letmathe, Chairman of the Board of Directors, Nestle S. A. * Paul Buckle, Chief Executive Officer, Nestle S. A. * Werner Bauer, Executive Vice President, Nestle S. A. , Chief Technology Officer, Head of Innovation, Technology, Research amp; Development * Friz van Dijk, Executive Vice President, Nestle S. A. Asia, Oceania, Africa, Middle East * Chris Johnson, Executive Vice President, Nestle S. A. United States of America, Canada, Latin America, Caribbean * Jose Lopez, Executive Vice President, Nestle S. A. Operations, GLOBE * John J. Harris, Executive Vice President, Nestle S. A. Chairman amp; CEO of Nestle Waters * Nandu Nandkishore, Executive Vice President, Nestle S. A. CEO of Nestle Nutrition * James Singh, Executive Vice President, Nestle S. A. Finance and Control, Legal, IP, Tax, Global Nestle Business Services * Laurent Freixe, Executive Vice President, Nestle S. A. Europe * Petraea Heynike, Executive Vice President, Nestle S. A. Strategic Business Units, Marketing, Sales and Nespresso * Marc Caira, Deputy Executive Vice President, Nestle S. A. Head of Nestle Professional Strategic Business Division * Jean-Marc Duvoisin, Deputy Executive Vice President Nestle S. A. Head of Human Resources and Centre Administration * David P. Frick, Senior Vice President and ex officio Member of the Executive Board Brazil headquarters in Brooklin Novo, Sao Paulo According to a 2006 global survey of online consumers by the Reputation Institute, Nestle has a reputation score of 70. 4 on a scale of 1ââ¬â100. . 1. Management of Nestle Management of Nestle believes in an open door policy and highly discourages bureaucracy in the operational process. The Organization offers an international and multicultural working climate which is conducive to creativity, innovation and the development of personality, and which gives new employees responsibility at an early stage of their career, and opportunities of fast development of high performers. Nestle is a human company where people are the most important asset and where they can develop their personality and skills to their own and their families satisfaction. Nestle offers a competitive compensation package and social benefits in line with Nestles commitment to high standards. In addition, the organization offers progressive development through on-going training throughout your career. Training possibilities are available to all staff. Nestle recently introduced e-learning in Bangladesh, a web-based programmed for self development. When joining Nestle, your training is not over it is only just the beginning Management is defined as the process of setting and achieving goals through the execution of 5 basic management functions that utilize human, financial and material resources. Efficiently means using resources optimally / best possible use * Effectively means getting the things done/making right decision and implementation 4. PLANNING Planning of Nestle: Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc. ) and generating plans for action. * Decision Making and the Planning Process Strategic goals Strategic plans Tactical goals Operational goals Operational plans The organizationââ¬â¢s mission The Environmental Context â⬠¢ Purpose â⬠¢ Premises â⬠¢ Values â⬠¢ Directions Tactical plans Kinds of organization plan * Strategic Plans * A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals. The plans are set by and for top management. * Tactical Plans * A plan aimed at achieving the tactical goals set by and for middle management. * Operational Plans * Plans that have a short-term focus. These plans are set by and for lower-level managers. 4. 1. 1 Time frame for planning * The Time Dimension of Planning * Is based on the principle of commitment. Planning must provide sufficient time to fulfill the managerial commitments involved. Long-range Plans * Cover present and future strategic issues; normally extend beyond five years in the future. * Intermediate Plans * Usually cover from 1 to 5 years and parallel tactical plans. * Are the principal focuses of organizational planning efforts. * Short-range Plans * Have a time frame of one year or less. * include action plans and reaction (contingency) plan 4. 1. 2Planning Staff * P lanning staff personnel gather information, coordinate planning activities, and take a broader view than individual managers. * Planning Task Force * Created when the organization wants special circumstance addressed. * Board of Directors * Establishes corporate mission and strategy. May engage in strategic planning * Chief Executive Officer * Usually serves as president or chair of the board of directors. Has a major role in the planning process and implements the strategy 4. 1. 3. B arrier to goal setting and planning: 4. 1. 4Policies and strategies in the planning process * They give mid and lower-level managers a good idea of the future plans for each department in an organization. * A framework is created whereby plans and decisions are made. Mid and lower-level management may add their own plans to the businesss strategies.. Organizing: (Implementation)pattern of relationships among workers, making optimum use of the resources required to enable the successful carrying out of plans. Nestle has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who was the former Nestle CEO. There are 14 members of the Board of Directors. Full details of each member and the committees that they operate within can be found in our Board of Directors section. The day to day management of the Nestle business is taken care of by our Executive Board members. The 13 designated Board Members manage diverse parts of the global business and a full curriculum vital of each member can be found in the Executive Board section. In addition to how our managers carry out their work as leaders, Nestle pragmatically implements The following organizational principles: â⬠¢ Being as decentralized as possible to optimally respond to the needs of consumers, within the framework defined by our fundamental policies, strategic directions and operational efficiencies â⬠¢ Ensuring collaboration of all Nestle businesses and compliance with Nestle principles, policies And standards (Nestle in the Market approach) Building and maintaining a structure which assures operational speed, with a strong focus on results and removing unnecessary obstacles. â⬠¢ Establishing flat and flexible organizations with minimal levels of management and broad spans of control, which also enable people development. â⬠¢ Setting a shared vision and common goals to lever age the strength of people and organizational alignment. â⬠¢ Defining clear levels of responsibility. Teamwork does not affect the managerââ¬â¢s duty towards his/her people and business results . A team must always have a leader who assumes full responsibility 4. 2. 1. A Mutual commitment: Living up to the Nestle Management and Leadership Principles is a commitment and a responsibility for everyone in our Company. To be effective, engaging and inspiring, all Nestle people must ââ¬Å"walk the talkâ⬠and lead by example in their daily work; in this context, actions speak louder than words. Therefore, at Nestle, in addition to professional skills ââ¬â and regardless of origin, nationality, religion, race, gender, sexual orientation and age ââ¬â the capacity and willingness to live up to these principles are the key criteriaââ¬â¢s for progressing within the organization 5. Staffing: Job analysis, recruitment and hiring for appropriate jobs. Staffing involves: -Manpower planning -Recruitment selection amp; placement -training amp; development 5. 1. Training: Process of altering employee behavior amp; attitudes in a way that increases the probability of goal attainment * The most common topics covered in cultural training include: Social| history | Politics| Business| customs| Economics| | | | | Training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizationalà settings. It has been known by several names, includingà employee development,à human resource development, andà learning and development. Major types of cross-cultural training programs Environmental Briefings Cultural Orientation Language Training Cultural Assimilators Sensitivity Training Field Experience Orientation amp; Training Programs at Nestle Formal Orientation Local Training International Training Literacy Training Nestle Apprenticeship Program International Training Nestleââ¬â¢s success in growing local companies in each country has been highly influenced by the functioning of its international Training Centre, Switzerland. International Training: Classes are carefully composed to include people with a range of geographic and functional backgrounds. Typically a class contains 15ââ¬â20 nationalities. The Centre delivers some 70 courses. Attended by about 1700 managers each year from over 80 countries. Only 25% of the teaching is done by outside professionals, as the primary faculty is the Nestle senior management. Its providing services for over 30 years. Managers from around the world to learn from senior Nestle managers and from each other. Country managers decide who attends which course. The programs can be broadly divided into two groups: 1. Management courses 2. Executive courses Training and trainer around the world: Local 1. DMBP: Distribution Management Best Practice. Trainer: Anirban Basu, Nestle India. 2. FMBP: Field Management Best Practice. Trainer: Ziaul Hafiz, Nestle Bangladesh. 3. DMBP plus: Distribution Management Best Practice. Trainer: Anirban Basu, Nestle India. Managing Partner: Good to Better. Trainer: Anirban Basu, Nestle India. International 1. SDS: SAR (South Asian Region) Distributor Solution (Distribution Management System), Chennai, India, 2009. 5. 2Findings amp; Recommendation Nestle said that from the factory floor to the top management, training at Nestle is continuous. And because it is mainly given by Nestle people, it is always relevant to your professional life. Approach is unique in many ways: * It reflects the companys decentralized nature. Whichever country you are working in, you will be given the knowledge and tools you need to respond to local needs * It encourages you to broaden your horizons, by working with people from many different countries and cultures in the course of your career For international assignment Preliminary Visits Preliminary trip of host country Accept or reject the assignment based on experience Language Training Host country language skills and adjustment: improves expatriateââ¬â¢s effectiveness and negotiating ability, info of host country, social support * Role of English language Knowledge of corporate language: a common company language ââ¬âEnglish Practical Assistance Adaptation to new environment, assist in relocation 6. Leading/directing: Determining what needs to be done in a situation and getting people to do it. Nestle managers at all levels are more with leading and inspiring people to add value to the Company and society rather than with exercising formal authority. This ca lls for a high personal commitment of each employee and a common mindset geared towards results. In an increasingly dynamic world, leaders face Significant challenges and opportunities. These stem from shifts to new social patterns and unprecedented worldwide competition. Achieving ongoing success requires that each Nestle leader understands the context and capitalizes on it, as described in the following principles: Lead to win â⬠¢ Has built credibility as a result of coherent action, leadership and achievement. â⬠¢ Is able to think from different perspectives and to create a climate of innovation. This implies openness to risk and the possibility of making mistakes, but also the willingness to correct and learn from them. â⬠¢ Believes in the importance of alignment and management of expectations. Has broad interests, a good general Education, responsible behavior as well as a balanced lifestyle. Manage for results â⬠¢ Embraces personal commitment and courage in execution. This includes the capacity and the willingness to take initiatives and risks while maintaining composure under pressure. â⬠¢ Values proactive cooperation in order to create sy nergies at local, regional and global levels. â⬠¢ Embraces change and is able to implement it and manage its consequences. â⬠¢ Believes in achieving business objectives rooted in compliance and sustainable practices. Grow talent and teams Has a passion for building and sustaining an environment where people have a sense of personal commitment to their work and give their best to promote our Companyââ¬â¢s success. â⬠¢ Cares for and develops the leaders of tomorrow through addressing all areas that Allow them to progress in their work and to expand their capabilities. â⬠¢ Understands the importance of continuous learning and improvement, as well as sharing knowledge and ideas freely with others. â⬠¢ Is committed to giving and receiving honest, accurate and timely feedback, including performance evaluation, in a climate of mutual respect . Believes in the importance of building diverse teams, and promotes the advantages of gender balance. Compete and connect exte rnally â⬠¢ Constantly looks for ways to satisfy our consumers and customers while attracting new ones in unique and compelling ways. â⬠¢ Displays curiosity and open-mindedness as well as a high level of interest in other cultures and lifestyles. â⬠¢ Believes in openness and dialogue with outside stakeholders about future trends in society, technology, consumer habits, and business opportunities. Understands the external impact of our operations and, as a result, proactively seeks to engage and partner with the community, authorities, shareholders and other stakeholders. Strategic leadership To force the businesses to become more efficent To crete a regional manufacturing network To integrate the company ââ¬Ës business on a global scale 7. Controlling/monitoring: * Types of Controls 1. Areas of Control 1. Physical resourcesââ¬âinventory management, quality control, and equipment control. 2. Human resourcesââ¬âselection and placement, training and development, p erformance appraisal, and compensation. . Information resourcesââ¬âsales and marketing forecasts, environmental analysis, public relations, production scheduling, and economic forecasting. 4. Financial resourcesââ¬âmanaging capital funds and cash flow, collection and payment of debts. Strategic control Structural control Operations control Financial control * The Purpose of Control 2. Control is one of the four basic management functions. The control function, in turn, has four basic purposes. Adapt to environmental change Limit the accumulation of error Control helps the organization Cope with organizational complexity Minimize costs Steps of controlling process: Establish standards Measure performance Compare performance against standards Maintain the status quo Correct the deviation Change standards Determine need for corrective action 2 1 4 3 Checking progress against plans. 1. The regulation of organizational activities so that some targeted element of performance remains within acceptable limits. 2. Provides organizations with indications of how well they are performing in relation to their goals. 3. Control provides a mechanism for adjusting performance to keep organizations moving in the right direction. Basic roles Category Role Example Interpersonal Figure head Leader Liaison Representing the org. Motivating employees Coordinating activities Informational Monitor Disseminator Spokesperson Scanning industry reports Sending memos Making speech Decisional Entrepreneur Disturbance handler Resource allocator Negotiator Developing new ideas Resolving conflict Examining budgets Pursuing agreements * Interpersonal: roles that involve coordination and interaction with employees. * Informational: roles that involve handling, sharing, and analyzing information. * Decisional: roles that require decision-making. 8. Management skills: * Political: used to build a power base and establish connections. * Conceptual: used to analyze complex situations. A conceptual skill is the ability to imagine the integration and coordination of the parts of an organization ââ¬â all its processes and systems. A manager needs conceptual skills to see how factors are interrelated, to understand the impact of any action on the other aspects of the organization and to plan long range. * Interpersonal: used to communicate, motivate, mentor and delegate. * Diagnostic: ability to visualize most appropriate response to a situation. Technical: Expertise in ones particular functional area. Technical skills are the knowledge of and ability to use the processes, practices, techniques or tools of a specialty responsibility area. E. g. accountants, engineers, salespersons, etc. Implementation of policies and strategies * All policies and strategies must be discussed with all managerial personnel and staff. * Managers must understand where and how they can implement their policies and strategies. * A plan of action must be devised for each department. * Policies and strategies must be reviewed regularly. Contingency plans must be devised in case the environment changes. * Assessments of progress ought to be carried out regularly by top-level managers. * A good environment and team spirit is required within the business. * The missions, objectives, strengths and weaknesses of each department must be analyzed to determine their roles in achieving the businesss mission. * The forecasting method develops a reliable picture of the businesss future environment. * A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives. . Levels of management Most organizations have three management levels: first-level, middle-level, and top-level managers. [These managers are classified in a hierarchy of authority, and p erform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles. 9. 1. Top-level managers Consists of board of directors, president, vice-president, CEOs, etc. They are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public. According to Lawrence S. Kleiman, the following skills are needed at the top managerial level * Broadened understanding of how: competition, world economies, politics, and social trends effect organizational effectiveness. The role of the top management can be summarized as follows * Top management lays down the objectives and broad policies of the enterprise. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. * It prepares strategic plans amp; policies for the enterprise. * It appoints the executive for middle level i. e. departmental managers. * It controls amp; coordinates the activities of all the departments. * It is also responsible for maintaining a contact with the ou tside world. * It provides guidance and direction. * The top management is also responsible towards the shareholders for the performance of the enterprise. 9. 1. 1Middle-level managers Consist of general managers, branch managers and department managers. They are accountable to the top management for their departments function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the companys policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance. Some of their functions are as follows: * Designing and implementing effective group and intergroup work and information systems. Defining and monitoring group-level performance indicators. * Diagnosing and resolving problems within and among work groups. * Designing and implementing reward systems supporting cooperative behavior. 9. 1. 2. First-level managers Consist of supervisors, section leads, foremen, etc. They focus on controlling and directing. They usually have the responsibility of assigning empl oyees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, suggestions, and up channeling employee problems, etc. First-level managers are role models for employees that provide: * Basic supervision. * Motivation. * Career planning. * Performance feedback. Factors that influence a manager to fit in one of the style: * The task that is being undertaken * The traditions of the organization * The type of Labor Force * The size of the group * The personality of the Leader * Personalities * Time 10. The Nestle factories are operating in the region of: 1. Africa 2. America 3. Asia 4. Europe 5. Oceania Being a company dedicated to food from the beginning, Nestle remains ensitive to culinary and eating habits, and responds to specific nutritional problems, whilst also setting and matching new trends such as growing out-of-home consumption and caring about the wellbeing of its consumers. * Zone Asia, Oceania and Africa gt; 6. 6% organic growth, strong performance in most emerging markets gt; Japan continued to suffer deflation but achieved positive RIG, With good performances in Soluble coffee and Chocol ate gt; China slow due to product exchange in Dairy, but on improving trend gt; South Asia, Africa and Middle East amongst the highlights 0. 1Nestle Focus in Bangladesh Nestle is the worlds leading Nutrition, Health and Wellness Company. In Bangladesh we have Maggi noodles and soups, breakfast cereal, Nescafe, coffee mate, baby food, milk and a seasoning. However, worldwide we have more than 10000 products in different variants. As of today, we employ over 276,000 people across more than 500 state-of-the-art facilities around the world. But it was never our ambition to be the biggest at what we do it was our ambition to be the best. That sums up what we mean by Nestle Focus. It means we also appreciate that size and success are nothing without the finer details such as genuine care for our consumers, a commitment to our people and a wider sense of responsibility towards our customers, suppliers and our communities. When you work for us, youll see the difference that makes at every stage. It will mean becoming part of an organization which can offer you subsidiary of Nestle S. A. whatever you want from your career. Nestle Bangladesh Limited started its first commercial production in Bangladesh in 1994. In 1998. Nestle S. A. ook over the remaining 40% share from our local partner when Nestle Bangladesh became a fully owned Nestle Bangladeshs vision is to be recognized as the most successful food and drink Company in Bangladesh, generating sustainable, profitable growth and continuously improving results to the benefit of shareholders and employees. Our factory is situated at Sripur, 55 km north of Dhaka, the factory produces instant noodles, cereals and r epacks milks, soups, beverages and infant nutrition products. Today Nestle Bangladesh Ltd. is a strongly positioned organization. The Company will continue to grow through our policy of constant innovation and renovation, concentrating on our core competencies and our commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh. In Bangladesh, Nestle started its operation in 1994 and its factory is situated in Sreepur, Gazipur. Nestle Bangladesh directly employs more than 650 people and more than 1000 people are employed by suppliers and distributors in connection to Nestle. Our products in Bangladesh are Nido, Nescafe, Maggi noodles and soup, breakfast Cereals, Coffee-Mate, Nestea, Nesfruta ,Nesfrappe and many more. Nestle is present around the globe, on all continents, with around 230,000 people working in more in an 84 countries with 466 factories and with sales representatives in at least another 70 countries. Nestle is the worlds largest food group, not only in terms of its sales but also in terms of its product range and its geographical presence. Nestle covers nearly every field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestle is a focused company, with more than 94 percent of the sales coming from the food and beverage sector. Did you know 3,000 cups of Nescafe are consumed every second? KitKat merited an entry in the Guinness Book of World Records as the worlds best-selling chocolate bar with 418 KitKat fingers eaten every second around the world! 10. 2 Selected awards, certifications and rankings * In May 2006, Nestleââ¬â¢s executive board decided to adapt the existing Nestle management systems to full conformity with the international standards ISO 14001 (Environmental Management Systems) and OHSAS 18001 (Occupational Health and Safety Management Systems), and to certify all Nestle factories against these standards by 2010. In the meanwhile a lot of the Nestle factories have obtained these certifications. For instance, Nestleââ¬â¢s three factories in Japan (Himeji factory: Hyogo Prefecture, Shimada factory: Shizuoka Prefecture and Kasumigaura factory: Ibaraki Prefecture) have each obtained ISO standard certifications: ISO14001, ISO 22000 (Food Safety Management Systems) and OHSAS 18001 as of the end of December, 2008. * In 2009, Nestle Waters earned a sixth LEED certification. The certification was given by the U. S. Green Building Councils Leadership in Energy and Environmental Design which the company become its first recipient. It highlights the environmentally conscious elements of the facility which enables them to receive the certification. * Nestle Purina received in 2010 the Malcolm Balding National Quality Award for their excellence in the areas of leadership, customer and market focus, strategic planning, process management, measurement, analysis and knowledge management, workforce focus and results * In September 2011, Nestle occupied 19th position in the Universalââ¬â¢s global ranking of Best Employers Worldwide. According to a survey by Universal Communications Nestle was in 2011 the best employer to work for in Switzerland. Based on independent research by the Corporate Research Foundation Institute, Nestle (South Africa) has been certified in 2011 as a Best Employer in South Africa. * Nestle USA has been recognized by Business Week magazine as one of the Best Places to Launch a Career. Business Week ranked Nestle USA #25 on their annual list of the best companies for new college graduates to launch their careers. * For the twelfth consecutive year, Fortune Magazine included in 2011 Nestle in their list of The 10 Most Admired Companies in the World. Nestle won in 2011 the Stockholm Industry Water Award for its leadership and performance to improve water management in its internal operations and throughout its supply chain. * The International Union of Food Science and Technology (IUFoST) honored Nestle in 2010 with the Global Food Industry Award. * In May 2011, Nestle won the 27th World Environment Center (WEC) Gold Medal award for its commitment to environmental sustainability. * In 2011, Nestle Malaysia won an award of the Association of Chartered Certified Accountants for their Sustainability Reporting. On 19 April 2012, The Great Place to Workà ® Institute Canada mentioned Nestle Canada Inc. as one of the 50 Best Large and Multinational Workplaces in Canada (with more than 1,000 employees working in Canada and/or worldwide). * In April 2012, Nestle obtained an A+ r ating from the Global Reporting Initiative (GRI) for their global annual report on Creating Shared Value. To reach A+ the company provided new data in their annual report on a number of criteria such as human rights, diversity and gender, climate change, biodiversity and corruption. Nestle was the first food and Beverage Company to achieve an A+ rating from the GRI for a global sustainability report. * On 21 May 2012, Gartner published their annual Supply Chain Top 25, a list with global supply chain leaders. Nestle ranks 18th in the list. Address: Nestle Bangladesh Ltd. Address: Gulshan Tower, Plot # 31, Road # 53, Gulshan North C/A City:Dhaka Location:Gulshan Phone:+880-2-9882759 Ext-255 Category: Milk Products Produce: For tetra Ltd 9, Prince Street P. O. Box-92032 Oakland, Newlands Nestle consumer service Post box no-11037, Uttra,Dhaka Care line number: 01730637853 0800217777 e-mail:concumer. [emailprotected] nestle. com
Saturday, March 7, 2020
Free Essays on The Fall Of The Black Panther Party
The Black Panther Party was one that started as a result of the struggle that African Americans faced from day one in America. With a militant hand the Black Panther Party wanted to uplift African Americans and bring about revolutionary socialism and equality for all oppressed minorities. Following in the steps of Malcolm X, the Black Panther Party also sought to bring about positive social services, and to take Malcolm Xââ¬â¢s goals for African Americanââ¬â¢s to new heights. With these theories and the manpower of a unified oppressed group, the uprising of the Black Panther Party was a steady, powerful, and productive organization for advancements in the African American community .Their were various events that lead to the downfall of the party. Some of these events included the militancy of the group in their efforts to achieve equality ,the rallies that incited the minds of their followers, the protest for the use of firearms as well as the use of firearms, and the arres t of the Defense Minister of the Panthers, Henry Newton. The group pushed forward to achieve their goals of equality, against a system that wanted to smother there voices. Though the uprising of the Black Panther Party was short lived, they manage to bring hundreds of thousand of backs and other minorities, as well as some whites together in a struggle for unity across colors. In the eyes of political figures this type of power in the hands of the Black Panther Party was seen as unhealthy for the nation. The FBI quickly developed plans and strategies to break down the party. The use of firearms was both a symbol for African Americans and white police officers. To blacks, the gun was a reminder that they had the right to defend themselves against the aggressive acts of police officers, and that they were on equal footing with the police because their bodies were not bullet proof. The possession of the guns gave African Americanââ¬â¢s a since of presence. The police h... Free Essays on The Fall Of The Black Panther Party Free Essays on The Fall Of The Black Panther Party The Black Panther Party was one that started as a result of the struggle that African Americans faced from day one in America. With a militant hand the Black Panther Party wanted to uplift African Americans and bring about revolutionary socialism and equality for all oppressed minorities. Following in the steps of Malcolm X, the Black Panther Party also sought to bring about positive social services, and to take Malcolm Xââ¬â¢s goals for African Americanââ¬â¢s to new heights. With these theories and the manpower of a unified oppressed group, the uprising of the Black Panther Party was a steady, powerful, and productive organization for advancements in the African American community .Their were various events that lead to the downfall of the party. Some of these events included the militancy of the group in their efforts to achieve equality ,the rallies that incited the minds of their followers, the protest for the use of firearms as well as the use of firearms, and the arres t of the Defense Minister of the Panthers, Henry Newton. The group pushed forward to achieve their goals of equality, against a system that wanted to smother there voices. Though the uprising of the Black Panther Party was short lived, they manage to bring hundreds of thousand of backs and other minorities, as well as some whites together in a struggle for unity across colors. In the eyes of political figures this type of power in the hands of the Black Panther Party was seen as unhealthy for the nation. The FBI quickly developed plans and strategies to break down the party. The use of firearms was both a symbol for African Americans and white police officers. To blacks, the gun was a reminder that they had the right to defend themselves against the aggressive acts of police officers, and that they were on equal footing with the police because their bodies were not bullet proof. The possession of the guns gave African Americanââ¬â¢s a since of presence. The police h...
Thursday, February 20, 2020
Social Support Group for People with Diabetes Research Paper
Social Support Group for People with Diabetes - Research Paper Example The role of social support in the health care profession is well accepted and has been shown to provide a certain degree of assistance in terms of alleviation of a number of illnesses and diseases (Sieloff, Frey, & King, 2007). However, there are also still a number of pathological fields that have yet to explore the efficacy of social support in terms of alleviations of symptoms and general recovery. Along these lines, this paper explores the hypothesis, ââ¬Å"A social support group for people with diabetes will increase their medication compliance,â⬠within the boundaries of relevant concepts, particularly social support. A total of eight articles are reviewed in this paper, offering insights on the population and sample, background literature, and significance of earlier studies made in support of the mid-range theory of social support. Some of these articles cover the theory of social support and its perceived effects on people with diabetes, while others focus on a more ge neral application of the theory on other diseases and medical conditions. The conceptual definitions of social support in nursing researches are largely the same, varying only in terms of the degree of intimacy that researchers agree upon. Operational definitions of social support, however, differ depending on the focus and the extent of the study. Different populations were used in the studies investigating the effects of the existence of a social support group. Since the particular hypothesis herein focuses on people with diabetes, the population utilized for a majority of the researches included in this review involves diabetic patients Social support: Review of Related Literature In a study by Patterson and Brewer (2009), social support was defined as ââ¬Å"the informational, instrumental / practical, emotional, and affirmational resources that people can receive from othersâ⬠(p. 178). Operationally, social support was measured in terms of the amount of ââ¬Å"information , aid, strategy, or resource that helps the parent to cope with the stressors and challenges associated with parenting an adolescent with diabetesâ⬠(p. 179). In this study, the population considered were parents of children with diabetes and the sample consisted of nine parents (six mothers and 3 fathers) of children with Type 1 diabetes. The study explicitly mentions reference to theories of support (p. 179) and it supports the existing theory by showing that parents are necessary social support for adolescents with diabetes. In the second study reviewed, Goz, et al (2005) defined social support as ââ¬Å"the assistance and protection given to others, especially to individuals.â⬠Presence of social support was measured in terms of the presence of family, including parents, spouse, offspring, siblings and grandparents; friends; and, a significant other, in the form of boy/girlfriend, relative, neighbor, and doctor using a pre-piloted survey questionnaire delivered to the participants (Goz, et al, 2005). The population for the study consisted of patients with Type 2 diabetes while sample group consisted of ââ¬Å"66 type 2 diabetes patients being followed up in the Diabetes Polyclinic of Kocaeli State Hospital in the Marmara
Tuesday, February 4, 2020
Decision-making and Information Politics Essay Example | Topics and Well Written Essays - 1000 words
Decision-making and Information Politics - Essay Example Responsibility refers to the concept of being accountable for every action an officer undertakes, while authority refers to the ability of an officer to influence the behavior of individuals. Empowerment in relation to governance means the authority an officer has towards acting on the decision made. Communication is the exchange of ideas or information pertaining to the policy or decision that has been made. For IT governance to achieve success, the authorities concerned must show the values of transparency, appropriate representation and support (Birrell, 2012). Transparency refers to availing information on the process itself, and this includes on how the decisions are made, and who are the individuals who make the decisions. Appropriate representation denotes the representation of people who might be affected by the decisions made, while support refers to the ability of an organization to mobilize the support of its IT governance structure. The organization should seek the support of every one interested with its affairs, and this includes its employees, and members of the public. The IT governance has a structure component, which provides an answer to what is governed, and who governs it. My university of study has a centralized IT governance model divided into four sections (Brisebois, Boyd and Shadid, 2010) , The first level of the governance structure is the strategic level, and it comprises of the senior most executives of the business entity. The main focus of governance at this level is to align the education strategies of the university, with its information technology strategy. At this stage, the committee creates the vision of the vision of the university, and how information technology will help it achieve its vision (Weill and Ross, 2004). The second level of the IT governance structure is the executive level. This stage
Monday, January 27, 2020
Green Roofs in Malaysia
Green Roofs in Malaysia In Malaysia, green roofs are considered as a fairly new concept although the concept offers many benefits. Green roofs promotes amenity and aesthetic benefits, environmental benefits, and economic benefits. The principal aim of this research is to improve the quality of green roof systems in Malaysia by develop design guidelines for green roof systems. This research will identify the performance benefits of green roof, the current phenomenon of green roof as well as their obstacles to adopt green roof systems. Mixed method of qualitative and quantitative approach will be applied in this research. The review of the literature will be conducted to gather information about green roof in order to identify the benefits of green roof systems. Survey will be conducted among three target populations, namely developers, architects and landscape architects who work in the Malaysian construction industry. Individuals for the sample group will be selected because as providers of green roofs, the ir views and actions have a direct influence on green roof development. The categorization of the building professionals will enable easy identification of any disparity in views between them. Besides that, the case studies also one of the vital steps to achieve the objective of this research. The Case Studies will combine different methods to compile an understanding of design guidelines for green roof systems. Case study methods involve an in-depth, longitudinal examination of a single instance or event. They provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results. This research is attempted to develop design guidelines for green roof systems in Malaysia. The findings from this research will open new avenues and fields for future researchers and academicians to carry out extensive researches on the topics concerned. INTRODUCTION The green roof is a system that used growing medium and vegetation on the top of the building roof (Cresswell, 2007). The vegetation is planted in a layer of soil or growing medium as the top layer of the roof. The water membrane system is positioned between growing medium and roof deck to carry away access water and also have a filter system to make sure that the plants have a sufficient water supply during dryer day (Long et al., 2006, Piper, 2003). Green roofs have been increasingly popular in Germany, United Stated of America and Europe (Koonce, 2010) not just because of the aesthetic value, but also for improving environment (Li et al., 2010). As discussed by (Castleton et al., 2010) the roof of a building can be partially or completely covered with a layer of vegetation. Many expert confirm that green roof can be classified into two types of systems which are intensive and extensive (Long et al., 2006, Molineux et al., 2009, Cresswell, 2007, Castleton et al., 2010). Intensive s ystems is more like a roof garden supporting large tree and shrubs, but require deep substrates and regular maintenance. Therefore, it is generally heavy and requires a specific support from the building (Molineux et al., 2009, Cresswell, 2007). The extensive system is opposite of intensive systems which have a thin substrate layer with low level planting, typically sedum or lawn, and can be very lightweight in structure (Castleton et al., 2010). Instead of lightweight, these roofs require little or no additional structural support from the building, less expensive, low maintenance, and designed for limited human access. Plants selected for extensive system are usually have a shallow root system, good regenerative abilities, resistance to direct solar radiation, harsh winds or heavy rainfall, and ground cover species on slopes up to 30% (Long et al., 2006, Cresswell, 2007). There are many potential benefits of green roofs. These may be considered to fall into three main categories, Amenity and Aesthetic Benefits, Environmental Benefits, and Economic Benefits, although there is a great deal of crossover between categories. Amenity Aesthetic Benefitsinclude leisure and open space, visual aesthetic value, health and therapeutic value, and food production. Environmental Benefits include ecological and wildlife value, water management, air quality, sound absorption, and reducing the urban heat island effect. Economic Benefitsinclude increased roof life, building insulation and energy efficiency, and green building assessment and public relations. These benefits operate at a range of scales. Some will only operate if relatively large numbers of green roofs are implemented in any particular area and their benefits will only be apparent at the larger neighborhood or city scale. Others will operate directly on an individual building (Michael and Thomas, 2003, V ancouver, 2009). Therefore, it is important to adopt green roof as it gives many benefits to reduce the environmental impact. The purpose of this research is to develop design guidelines for green roof system in Malaysia. RESEARCH STATEMENT The phenomenon of global warming or climate change has led to many environmental issues including higher atmospheric temperatures, intensive precipitation, increase greenhouse gaseous emission and of course increase indoor discomfort condition (Asmat Ismail et al., 2010). Some scientists believe that changes are part of natural variability (Radhi, 2009) while others point to human activity (Oh and Chua, 2010, Nordell, 2003) as the cause of increasing atmospheric concentrations of greenhouse gases (GHGs) and the key driver of climate change. As the Carbon dioxide (CO2) in atmosphere increases, the ability of earth surface to reradiate heat to the atmosphere is lessen. Carbon dioxide acts as a blanket over the surface and keeps the earth warmer than it would otherwise be. The warmer climate outside will also affect the indoor temperature of building. When the outdoor air temperature increases, building will experience indoor discomfort. The demand for mechanical ventilation will be cri tical and eventually lead to higher energy consumption in building (Asmat Ismail et al., 2010). The heavy reliance on air conditioning typically increases energy use, increased emission of CO2, increase other GHGs to power the system (Calm, 2002) and also adding to negative impacts of global warming (Wilkinson et al., 2007). Therefore, it is vital important to reduce the energy consumption in building by reducing the usage of air conditioning system where the air conditioning systems release the carbon into the air which has been identified as the element that insulates planet and one of the major contributor in global warming. Buildings are important contributors to the ever-increasing carbon emission and its impact on global warming (Kui, 4 october 2010; The Star, May 2009). Buildings last longer, and over that lifetime they play a part in contributing to the destruction of the environment. Over its life cycle, a building uses many resources and is the source of much pollution emissions (Yoon, 2009). In Malaysia, commercial and residential building use up 48% of the electricity generated (Li, 2009). During the UN Climate Change Conference in December 2009, Prime Minister Datuk Seri Najib Razak made very clear Malaysias commitment to the green cause, pledging to cut up to 40 per cent of Malaysias carbon emission intensity in terms of GDP by the year 2020 from year 2005 levels (Singh and Ping, 2010, Fernandez, 2010). Therefore, one way to reduce the impact of global warming and improve urban environmental quality is by adopting the green roof technologies (Williams et al., 2010). However, the question arise s, why Malaysian construction industry must adopt the green roof technology? It is because most of the heat 75% enters from roof compare to 25% from wall. Besides that, the roof is exposed most for the longest period to solar radiation where heat radiated from the sun is absorbed by the roof surface and the ceiling absorbs the radiated heat (Lu, 2009). Apart from that, the green roof technology is able to reduce the energy consumption and can improve the internal comfort during the spring and summer seasons (Fioretti et al., 2010, Michael and Thomas, 2003, Lawlor et al., 2006). Furthermore, green roof lead to lower energy bills, and provide a carbon sink in urban areas, along with many other diverse ecological advantages (Sihau, 2009). Thus, in order to reduce the amount of heat entering through the roofs, such buildings must be adopted with green roof technology. In Asia, the use of green roofs has arisen in Japan, Singapore, Hong Kong and China. Although the idea of green roofs in Asia is new, these countries are active in developing, practicing and conducting research on green roofs, particularly in Singapore (Wan et al, 2010). According to Wong (2005) roofs present 21%-26% of urban areas and this can provide a unique opportunity to improve the environment if green roofs are used. In urban areas such as Kuala Lumpur, there are a lot of opportunities to implement green roofs in the development because of rapid expansion in these areas. By having a green roof, the areas taken from nature to be developed are made to come alive again. Green roofs in Malaysia are considered as a fairly new though lots of benefits are offered. However, in country that has similar climate with Malaysia such as Singapore have grown remarkable on green roof. Compare to Singapore, Malaysia are far behind in terms of research done, policies, technology and practice in this area (Govindaraju et al., 2005, Chandran et al., 2009). Malaysia still remains many potential obstacles to their more widespread adoption. This obstacles include a lack of standards, high costs when green roof installers are inexperienced, few demonstration examples to inspire and give confidence to developers considering a green roof and a lack of relevant and reliable research to provide confidence in the economic and environmental benefits of green roofs (Williams et al., 2010) (Williams et al, 2010; Sihau 2009; Michael Thomas, 2003). Besides that, Malaysia has a very different climate to the temperature regions of the northern hemisphere where green roofs are more common. Relying on northern hemisphere research, experience and technology is problematic, due to significant differences in rainfall, temperature, available substrates and suitable vegetation (Wilkinson, 2009). This may introduce unacceptable levels of risk and unnecessary expense to development projects consid ering green roofs. Since Singapore is advance in developing green roof system, therefore Malaysia should put Singapore as an example to move towards green roof system. This research examines green roofs in Malaysia, the status of the industry and discusses information gaps requiring research. Therefore, it is important to overcome the obstacles by adopting green roof technology in Malaysia in order to get the benefits offers from the technology. In recent years, green roofs are becoming more and more popular in the world and have also attracted much attention in Malaysia. However, when people consider applying green roof systems, they often find it difficult to understand the technical requirements, design an effective system and evaluate their performance. Unlike other countries that are very advance in green roof technologies such as Germany and Japan, they have their own guidelines for green roof system (Hui, 2010). A brief discussion with Ishamuddin Mazlan from Ministry of Energy, Green Technology and Water (KeTTHA) indicates that there are no design guidelines for green roof systems in Malaysia. In German, the German Landscape Research, Development and Construction Society (FLL) has been working on standards for green roof technology for 25 years. Their ââ¬ËGuideline for the Planning, Execution and Upkeep of Green-Roof Sites (FLL-guidelines) reflects the latest developments in German acknowledged state-of-the-art tec hnology (Philippi, 2005). Over 800 green roofs can be found in Germany alone, a leader in building codes and incentives for green roof installation. In Asia, Japan has become a center for green roof technology. Its capital, Tokyo, is the first city to mandate building vegetation must constitute 20 percent of all new construction (Wark, 2003). Their guidelines are very useful to implement green roof but they should not be copied directly without adapting and considering the local conditions of Malaysia. Therefore, there is an urgent need to develop local design guidelines for green roof systems in Malaysia. THEORETICAL FRAMEWORK There were various research has been conducted in the field of green roof systems and the quantity seems to increase over the years since environmental issues become more concerning worldwide. The research that has been done in the field of green roof can be grouped into seven which are research on storm water management, research on materials, research on opportunities and barrier, research on environment, research on energy and building, research on perceptions, and research on guidelines. The research that has been done in storm water management for instance by Berghage et al (2009) conducted a research on Green Roofs for Stormwater Runoff Control. The findings of the paper indicate that the green roofs are capable of removing 50% of the annual rainfall volume from a roof through retention and evapotranspiration. Rainfall not retained by green roofs is detained, effectively increasing the time to peak, and slowing peak flows for a watershed. Whereas Berndtsson et al (2009) conduct ed a research on Runoff water quality from intensive and extensive vegetated roofs. This study investigated influence on runoff water quality from two full scale vegetated roofs (an intensive from Japan and an extensive from Sweden). Results show that both extensive and intensive vegetated roofs are a sink of nitrate nitrogen and ammonium nitrogen with similar performance. The intensive vegetated roof is also a sink of total nitrogen in contrast to the extensive roof. While Hardin and Wanielista (2007) has done research on a water quality assesment of a green roof stormwater treatment systems. The results of this work show that the use of green roof stormwater treatment systems for the improvement of stormwater quality is a promising treatment option. The total suspended solids results show that green roofs had a lower concentration and smaller standard deviation than the control chambers. Besides, Emilsson et al (2007) has done a research on Effect of using conventional and control led release fertiliser on nutrient runoff from various vegetated roof systems. The findings of the paper indicate that Conventional fertilisers caused high nutrient concentrations in the runoff water. Concentrations decreased during the duration of the experiment but at the end of the experiment they were still higher than after fertilisation with CRF. Conventional fertiliser also increased the total nutrient runoff. Research on materials for instance has been done by Molineux et al (2009) on Characterising alternative recycled waste materials for use as green roof growing media in the U.K. This study have shown that the alternative substrates perform as well if not better, than the widely used crushed red brick as growing media, in terms of plant growth and material characterisations.. They are also similar in price to the red brick substrate (Shireminerals, pers. comm.) and are already commercially available. While Cresswell (2007) has done a research on Characterisation of Mineral Wastes, Resources and Processing technologies. The findings indicate that Aerated concrete is a material that is suitable for use as a light weight green roof substrate. It has the appropriate density and water absorption. Research that has been conducted on opportunities and barrier for instance by Williams et al (2010) on Green roofs for a wide brown land: Opportunities and barriers for rooftop greening in Australia. This paper examines green roofs in Australia, discusses the challenges to increasing their use and the major information gaps that need to be researched to progress the industry in Australia. While Wilkinson and Reed (2010) compile a unique building database incorporating information about 536 commercial buildings and evaluate the potential suitability of each building to undergo a green roof retrofit. A relatively small proportion of roofs are found to be suitable, partly a result of local climate conditions and rainfall patterns, and the physical property stock. On a purely physical assessment, only a very small proportion of central business district (CBD) stock is found to be suited. These buildings are most likely to be in low secondary locations, ungraded or B grade buildings, priv ately owned, concrete framed and not overshadowed by adjoining properties. Besides, compile a unique building database incorporating information about 536 commercial buildings and evaluate the potential suitability of each building to undergo a green roof retrofit. A relatively small proportion of roofs are found to be suitable, partly a result of local climate conditions and rainfall patterns, and the physical property stock. On a purely physical assessment, only a very small proportion of CBD stock is found to be suited. These buildings are most likely to be in low secondary locations, ungraded or B grade buildings, privately owned, concrete framed and not overshadowed by adjoining properties. Besides, Rowe and Getter (2006) conducted research on The Role of Extensive Green Roofs in Sustainable Development. This paper is a review of current knowledge regarding the benefits of green roofs, plant selection and culture, and barriers to their acceptance in the United States. Because o f building weight restrictions and costs, shallow-substrate extensive roofs are much more common than deeper intensive roofs. Therefore, the focus of this review is primarily on extensive green roofs. Research on environment for instance has been done by Renterghemand Botteldooren (2011) on In-situ measurements of sound propagating over extensive green roofs. In this study, in-situ measurements of sound propagation over flat, extensive green roofs were presented in 5 case studies. These involved situations with either a single diffraction or double diffraction over green roofs. Measurements show that green roofs may lead to consistent and significant sound reduction at locations where only diffracted sound waves arrive. Among the single diffraction cases, acoustic green roof improvements exceeding 10 dB were found, over a wide frequency range. While Li et al (2010) study on Effect of green roof on ambient CO2 concentration. The study systematically investigates the effect of green roofs on the ambient CO2 concentration using field measurements, chamber experiments and numerical simulations. Plants can reduce the CO2 concentration in the environment by absorbing CO2 in the daytime. In a typical sunny day in summer in Hong Kong, the CO2 absorption rate of a plant in the daytime is much greater than the CO2 emission rate at night. The extent of the green roof effect is related to the condition of the plants, the position of the green roof and the ambient airflow condition. In a sunny day, a green roof may lower the CO2 concentration in the nearby region as much as 2%. On the other hand, Carter and Keeler (2008) conducted research on Life-cycle cost-benefit analysis of extensive vegetated roof systems. This study uses data collected from an experimental green roof plot to develop a benefit cost analysis (BCA) for the life cycle of extensive (thin layer) green roof systems in an urban watershed. The results from this analysis are compared with a traditional roofing scenario. The net present value (NPV) of this type of green roof currently ranges from 10% to 14% more expensive than its conventional counterpart. A reduction of 20% in green roof construction cost wo uld make the social NPV of the practice less than traditional roof NPV. Besides, Jones and Alexandri (2008) studied on Temperature decreases in an urban canyon due to green walls and green roofs in diverse climates. From this quantitative research, it has been shown that there is an important potential of lowering urban temperatures when the building envelope is covered with vegetation. Air temperature decreases at roof level can reach up to 26.0 1C maximum and 12.8 1C day-time average (Riyadh), while inside the canyon decreases reach up to 11.3 1C maximum and 9.1 1C daytime average, again for hot and arid Riyadh. It can be concluded that the hotter and drier a climate is, the greater the effect of vegetation on urban temperatures. Research on energy and building that has been done by Chang et al (2011) on Optimal Design for Water Conservation and Energy Savings Using Green Roofs in a Green Building under Mixed Uncertainties. The study identifies the optimal green roof area that keeps within the cost of a conventional home over a specific life time, such as 50 years. Research findings show that as the reliability level associated with the chance constraint was decreased, the upper bound of the green roof area did not vary much for either shingle or metal roofs. The lower bound was found to decrease in the same situation, however, due to the higher minimum cost of the cistern in relation to the greater volume of expected rainfall, forcing the required green roof area to decrease. While Fioretti et al (2010) investigate Green roof energy and water related performance in the Mediterranean climate. The investigation performed within the specific climatic context of the Mediterranean region. Full-scale experimental results are provided from two case studies, located in north-west and central Italy, consisting in two fully monitored green roofs on top of public buildings. The attenuation of solar radiation through the vegetation layer is evaluated as well as the thermal insulation performance of the green roof structure. The daily heat flow through the roof surface is quantified showing that the green roof outperforms the reference roof, therefore reducing the daily energy demand. As for water management, it is confirmed that green roofs significantly mitigate storm water runoff generation even in a Mediterranean climate in terms of runoff volume reduction, peak attenuation and increase of concentration time, although reduced performance could be observed during high precipitation periods. Besides, Castleton et al (2010) conducted a research on Green roofs; building energy savings and the potential for retrofit. This paper reviews the current literature and highlights the situations in which th e greatest building energy savings can be made. Older buildings with poor existing insulation are deemed to benefit most from a green roof as current building regulations require such high levels of insulation that green roofs are seen to hardly affect annual building energy consumption. As over half of the existing UK building stock was built before any roof insulation was required, it is older buildings that will benefit most from green roofs. The case for retrofitting existing buildings is therefore reviewed and it is found there is strong potential for green roof retrofit in the UK. Research on perception has been done by Wan Zuriea et al (2010) on Perception towards green roof in Malaysia. Results from interviews showed that the respondents perceived green roofs benefits are that they provide leisure and operational space, visual amenities value and health and therapeutic value and environment and economic advantages. From the field observation study, it was found that there is a good potential for green roof as it promotes a range of benefits that can solve the problem of ecological steps, limitation of space, greenery balance, global warming, aesthetics and lost of wildlife habitat that occur in many urban areas. While House (2009) conducted research on North Texas Stakeholders: Perceptions of Extensive Green Roofs. The findings of the paper indicate thatstakeholders perceived extensive green roofs as being appropriate for use in North Texas. Concerns were raised regarding plant selection, weight requirements, initial cost, city codes, and aesthetics. Develop ers and city officials indicated their concern for the performance of green roofs in the extremes of the North Texas climate, while architects and landscape architects spoke of the multitude of benefits and appropriateness for this region. Overall, perceptions of extensive green roofs were favorable, but a lack of adequate research and concerns over cost issues were frequently cited as barriers to implementation. However, in this paper, researcher tends to focus on design guidelines of green roof system.Ãâà There is no similar thorough research which has been done by any other researcher in Malaysia regarding on design guideline of green roof systems. Malaysia still do not have the design guidelines for green roof system based on the preliminary interview that has been done with Encik Ishamuddin bin Mazlan from the Ministry of Energy, Green Technology and Water (KeTTHA). For instance, Hui (2010) has develop technical guidelines for green roof systems in Hong Kong. This paper describes the major findings of a research to develop technical guidelines for green roof systems in Hong Kong. The current knowledge and latest trends of green roof technology in the world have been studied. Useful information and experience were examined for assessing the potential benefits and key design factors. By investigating the system components and practical considerations of typical green roof projects in Hong Kong and other countries, key information is established for preparing the technical guidelines. Based on the review of the previous related to the research, there seems no study that has been done on design guideline for green roof systems in Malaysia and this will be an interesting topic for researcher in this Master research. Therefore, there is a gap that has been left for researcher to fill in and to contribute to the existing body of knowledge. AIM AND OBJECTIVE Generally, this research seeks to have an understanding and knowledge on green roof systems. This study aims to improve the quality of green roof systems in Malaysia by develop design guidelines for green roof systems. In order to achieve the aims above, three (3) correlative objectives are outlined as follows: To identify the operational performance benefits of green roof technology To explore the obstacle to adopt green roof technology To develop design guidelines for green roof systems in Malaysia RESEARCH QUESTIONS Research questions are framed as a guide to fulfil the research objectives. This research is expected to produce design guidelines that make best use of the potential of green roof. Having decided that, the following research questions are addressed and framed: Research question for objective 1 What are the effect of the green roof to the environment How green roof can reduce energy consumption in buildings How importance of using green roof technology in buildings Research question for objective 2 What are the barriers in adopting green roof systems in Malaysia How do this barrier effect the adoption of green roof in Malaysia Research question for objective 3 What are the factor need to be considered in designing the green roof systems RESEARCH METHOD The methodology in conducting is three different stages as follows: a) Literature Search Review Literature search will conducted to gather information about green roof in order to identify the benefits of green roof systems. The sources and information from journals, articles, books and internet are then fully analyzed and studied to gain better understanding on green roof technology. b) Survey Survey will be conducted among three target populations, namely developers, architects and landscape architects who work in the Malaysian construction industry. Set of questionnaires will be distributed to explore the obstacles to adopt green roof technology in Malaysia by comparison of answers to the same set of questions. The analysis of data from the questionnaires responses may provide data from which tables of obstacles can be produced. c) Case Study The Case Studies combine different methods to compile an understanding of modular green roof systems. Case study methods involve an in-depth, longitudinal examination of a single instance or event: a case. They provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results. As a result the researcher may gain a sharpened understanding of why the instance happened as it did, and what might become important to look at more extensively in future research. RESEARCH SCOPE AND LIMITATION The target group of this research consisting of developers, architects, and landscape architects in the peninsular of Malaysia excluding Sabah and Sarawak who work in the Malaysian construction industry. Individuals for the sample group will be selected because as providers of green roofs, their views and actions have a direct influence on green roof development. The categorization of the building professionals will enable easy identification of any disparity in views between them. SIGNIFICANCE OF THE RESEARCH This research is expected to identify the performance benefits of green roof systems in order for green roof to be utilized in Malaysian buildings. Besides that, this research will identify the obstacles to adopt green roof and develop recommendation to overcome this obstacles. Furthermore, this study will add to the body of knowledge that green roof systems can enhance the environment of the urban area, reduce energy use in buildings, and help to reduce effect of global warming especially in urban area in Malaysia. On top of that, this research hopes to give a better understanding and way to adopt green roof systems in Malaysian buildings. At the end of this research, it will develop new design guidelines for sustainable green roof systems in Malaysia. Aim Research Statement Objectives Research Questions Research Method To improve the quality of green roof systems in Malaysia by develop design guidelines for green roof systems. Global warming or climate change OB1: To identify operational performance benefits of green roof technology RQ1.1: What are the effects of the green roof to the environment RQ1.2: How green roof can reduce energy consumption in buildings RQ1.3: How importance of using green roof technology in buildings Literature review Obstacles in adoption green roof systems OB2: To explore the obstacles to adopt green roof technology RQ2.1: What are the barriers in adopting green roof systems in Malaysia RQ2.2: How do this barrier effect the adoption of green roof technology in Malaysia Questionnaire Survey Design Guidelines OB3: To develop design guidelines for green roof systems in Malaysia RQ3.1: What are the factor need to be considered in designing the green roof systems Case Study
Sunday, January 19, 2020
Decision Making at the Top: The All Star Essay
Sunru Yong prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright à © 2008 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. M I C H A E L B E E R S U N R U Y O N G TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial Emma Richardson squinted at the TerraCog GPS (Global Positioning System) prototype in her hand. She zoomed in until the display showed a clearer satellite photo of the lake 200 feet in front of her and into which her Labrador had already happily bounded. Most weekends, Richardson made the hike to the lake to clear her mind and, on occasion, to test new GPS models from her employer, TerraCog, Inc. Unfortunately, with the ââ¬Å"Project Aerialâ⬠launch meeting scheduled for the next day, it was difficult to enjoy this particular hike. Emma wondered how to get all parties to reach an agreement on the price point for Aerial. TerraCog had started losing share to a competitor, Posthaste, and it was imperative to get the new product to market. Arriving at the lake, Richardson gave in to the urge to check her phone and grimaced as she noticed two new voicemails. The first message was from Allenà Roth, the director of design & development (see Exhibits 1 and 2 for an organizational chart and brief biographies of key managers): ââ¬Å"Emma, itââ¬â¢s Allen. Listen, Tony and I have been over these cost numbers on Aerial. We cut all that we could and we ended up with only a 7% or 8% reduction to cost. Unfortunately, I donââ¬â¢t think this will get us to the price point that Sales is looking for. But I donââ¬â¢t need to remind you that we gave Sales the features and functionality they wanted in Aerial, so Iââ¬â¢m not going back now to ask my team to do the impossible. Weââ¬â¢ll hash it out tomorrow, but I figured it best you hear it from me.â⬠The second message was from her boss, Richard Fiero, the company president: ââ¬Å"Emma, I wanted to check on Aerial. I heard grumbling from Ed and the sales team on Friday. They seemed frustrated with Tony Barrenââ¬â¢s production team. Make sure Production has its act together. Tony should know heââ¬â¢s on thin ice after the recent production fiasco on that sonar project-heââ¬â¢s got to succeed on Aerial. We need to have Aerial on shelves at the start of Q3. Some board members are worried, so Aerial will be near the top of the agenda at the board meeting next month.â⬠2184 A P R I L 1 1 , 2 0 0 8 For the exclusive use of B. Shi This document is authorized for use only by Bixi Shi in Organizational Behavior- Fall 2014 taught by Elaine Wong University of California ââ¬â Riverside from October 2014 to December 2014. 2184 | TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial 2 BRIEFCASES | HARVARD BUSINESS SCHOOL Neither message was encouraging. The Aerial meeting the next day, involvingà the sales, design & development, and production departments, was now guaranteed to be contentious. It was March 2008-only two months since Richardson had been promoted to executive vice president. Fiero had tasked her with moving TerraCog toward greater operational alignment and increasing cross-departmental cooperation. Richardson had already been tested by both inventory problems and quality issues, which had led to significant tension between the U.S. headquarters in Chicago and the production team in Shenzhen, China. Now, disagreement over the proposed price point for Aerial threatened to derail the launch of the prototype in her hand. Company and Industry History TerraCog was a privately held company specializing in high-quality Global Positioning System (GPS) and fishing sonar equipment. Founded in 1977, TerraCog got its start manufacturing high-end sonar equipment for serious sport fishermen and boaters. In the late 1990s, the company had introduced its first GPS products, marketed specifically to hunters, hikers, and campers. Management believed that it was the companyââ¬â¢s skill at translating retailer and user feedback into exceptional product design and functionality that fueled the growth of its GPS business. Through attentive channel management and, as Fiero put it, ââ¬Å"a deep understanding of what specialty retailers needed,â⬠TerraCog had developed strong relationships with its key accounts. Fiero also believed that TerraCogââ¬â¢s grasp of its consumersââ¬â¢ preferences and usage had given it an edge over GPS manufacturers whose core business was in automotive applications. The firm had built its GPS line for the serious outdoor enthusiastsââ¬â¢ market, and the products had won plaudits for durability and value-added features like the integrated compass and barometric altimeter. Moreover, industry reports indicated that the TerraCog GPS outperformed competing products on navigation. TerraCogââ¬â¢s proprietary firmware-a custom computer program embedded into hardware that ââ¬Å"ranâ⬠functions-optimized the GPS chipsetââ¬â¢s Wide Area Augmentation Systemà capability, which provided more precise navigation. The company was not always first to market. In fact, TerraCog had found it was free to lag in technological innovation with little risk because, when the company finally introduced new products, they surpassed those of competitors in addressing customer needs. Customer word-of-mouth recommendations had given TerraCog strong momentum with its handheld GPS. In early 2007, TerraCog prepared to enter new, underserved GPS sub-markets, including cycling and fitness applications. ââ¬Å"Google Earthâ⠢ for your GPSâ⬠At the Summer 2006 Outdoor Retailer Show-the biggest trade show for vendors of outdoor goods-a competitor, Posthaste, had unveiled a GPS prototype called ââ¬Å"BirdsIâ⬠that displayed satellite imagery. The imagery was not live, but rather static satellite photographs that had been ââ¬Å"stitchedâ⬠into a single view. This was a marked improvement on the simple, vector-based graphics used by the rest of the industry (see Exhibit 3 for a comparison). This did not impress the TerraCog team. The imagery was crisp and had a certain visual appeal, but TerraCogââ¬â¢s research showed that BirdsI technology did not offer substantive performance improvement over the standard maps in TerraCogââ¬â¢s GPS system. Furthermore, the TerraCog team was convinced that Posthasteââ¬â¢s receiver lagged TerraCogââ¬â¢s product in both accuracy and reception quality. While the TerraCog team dismissed the Posthaste concept, a number of key buyers and product reviewers found it an exciting innovation. One magazine reviewer observed, ââ¬Å"Imagine having For the exclusive use of B. Shi This document is authorized for use only by Bixi Shi in Organizational Behavior- Fall 2014 taught by Elaine Wong University of California ââ¬â Riverside from October 2014 to December 2014. TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial | 2184 HARVARD BUSINESS SCHOOL | BRIEFCASES 3 Google Earthâ⠢ built into your GPS-itââ¬â¢s much more compelling to look at an actual satellite image than to have yellow for land, blue blobs for water, and grey squiggles for roads.â⬠Based on the buzz, TerraCogââ¬â¢s executives debated whether to upgrade to satellite imagery. However, they realized that adding the feature to the existing GPS platform required upgrades to processor speed and memory, as well as new firmware. After some deliberation, the company dropped the idea as a non-essential fad. TerraCogââ¬â¢s management remained confident that the companyââ¬â¢s core customers were discerning purchasers who would value durability and performance over dressed-up graphics. In October 2006, with much fanfare, Posthaste introduced BirdsI as ââ¬Å"the only handheld GPS with satellite imagery.â⬠BirdsI had an exclusive launch at two major national outdoor retailers, both of which were key accounts for TerraCog. Within two months, TerraCogââ¬â¢s sales representatives in the field reported impressive sell-through rates for BirdsI nationwide. While the productââ¬â¢s success surprised TerraCog, management attributed it to the ebullience of the holiday shopping season. The TerraCog team was confident that the popularity of BirdsI wouldnââ¬â¢t last. Project Aerial However, by spring 2007 TerraCogââ¬â¢s sales reps were noticing increasing customer demand for a GPS with satellite imagery like BirdsI. Ed Pryor, vice-president of sales, began pressing for a reversal of the decision not to develop the product. ââ¬Å"Itââ¬â¢s embarrassing to have no answers for our retailers when they ask for our version of this,â⬠he said. ââ¬Å"Look at it from our perspective. Weââ¬â¢ve changed the compensation plan for the whole Sales team-including me-so we take a real hit if we donââ¬â¢t reach our sales targets. Customers now want something different, and I canââ¬â¢t tell my reps we have noà plans to develop the product they need to hit those targets.â⬠In response to these repeated requests, TerraCogââ¬â¢s president, Richard Fiero, changed his mind on satellite imagery, if only to satisfy the ââ¬Å"gadgetâ⬠appeal of such an innovation. The initiative was dubbed Project Aerial. In order to speed development and avoid the costs of new moldings and major reconfiguration, the team decided to redesign within the existing GPS platform. Shortly after making the decision to proceed with Aerial, Fiero and Pryor met with Allen Roth, director of design & development. Roth brought his key managers to the meeting: Cory Wu, who oversaw software and firmware, and Alice Gorga, who managed hardware design. RICHARD FIERO: Allen, weââ¬â¢re obviously in a hurry to get to market. But we donââ¬â¢t want something slapped together ââ¬â letââ¬â¢s make sure we get this product completely right the first time. Our reputation for quality is paramount. ALLEN ROTH: Understood. Are we including all the same features that we have in our current GPS line? ED PRYOR: Yes. We plan to offer Aerial at approximately a $50 retail premium to the current top- of-the-line GPS, so itââ¬â¢s important to maintain the same high-end functionality. ALLEN ROTH: What about speed? Satellite imagery requires a lot of processing power, so without some serious juicing, Aerial might run slower than youââ¬â¢d like. ED PRYOR: I think weââ¬â¢ll be okay there, Allen. Our consumers are tech-savvy-they know thereââ¬â¢s an inherent trade-off to get more sophisticated graphics. As the meeting ended, Roth indicated that they would have to do some careful planning to keep costs as low as possible, but he was sure the product design could be completed by yearââ¬â¢s end. At that point, they could hand it off to production to develop detailed cost estimates, which would allow theà sales team, in consultation with finance, to determine pricing and develop a go-to-market plan. For the exclusive use of B. Shi This document is authorized for use only by Bixi Shi in Organizational Behavior- Fall 2014 taught by Elaine Wong University of California ââ¬â Riverside from October 2014 to December 2014. 2184 | TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial 4 BRIEFCASES | HARVARD BUSINESS SCHOOL Given the manufacturing lead-time, TerraCog expected to get Aerial to stores by the 2008 holiday season (see Exhibit 4 for timeline of events). The product development team members did not greet the Aerial decision with enthusiasm. First, they felt that a redesign of the total platform-including firmware, external case, internal components, and TFT (thin-film transistor) display-was feasible if management could extend time to market by six more months; the resulting product would be superior and the project would be more stimulating technically to the team members. Second, they had several other ideas for new products that they believed would position TerraCog to capitalize on growth in cycling and fitness GPS applications, and Project Aerial was forcing them to put aside these more exciting projects. Finally, with company co-founder Harold Whistler preparing for retirement, Roth was eager to prove his readiness to be the next VP of design & development. The Aerial project impeded his building of a product line he could truly call his own. Aerial Pre-Launch Meeting As promised, the design team completed Aerial by the end of 2007. Late in January 2008, the production team received the design specifications ità needed to establish production methods, conduct a pilot run, and estimate costs. As the new executive vice president, Emma Richardson was tasked with overseeing the product launch. She scheduled a launch meeting in early March with sales, production, and design & development. In the past, Fiero and Whistler had been very involved in new products and tended to make quick decisions. TerraCogââ¬â¢s growth forced Fiero to take a step back from the launch process, while Whistler had cut back to part-time hours. There were many more employees involved in Aerial than in past product launches, and Richardson worried that the size of the group might threaten the focus and thwart decision making. She needed to finalize decisions on costs, pricing, and initial production volume. At the start of the pre-launch meeting on March 7, Richardson looked down the table, seeing Ed Pryor, Allen Roth, production director Tony Barren, Cory Wu representing software and firmware, and Alice Gorga representing hardware. Richardson opened the meeting by asking Barren to present his cost estimates. Barren looked around grimly and did not mince words: ââ¬Å"This thingââ¬â¢s expensive to build. It looks the same, but Aerialââ¬â¢s got higher-end components and itââ¬â¢s more complex to manufacture.â⬠He gave a high-level overview of product-cost breakdown and concluded by saying, ââ¬Å"Iââ¬â¢ll be blunt. Youââ¬â¢re going to have to sell this product for a lot more than you thought. If anything, we have been too aggressive in our cost estimate. We canââ¬â¢t lower it beyond what Iââ¬â¢ve presented.â⬠ED PRYOR: I know you think your estimates are sound, but that isnââ¬â¢t going to help us. With these numbers, we would have to sell Aerial for $550 to maintain our margin. Weââ¬â¢d be two years late to market with a price point $100 over BirdsI. CORY WU: Tony, those cost estimates are surprisingly high. We tweaked the firmware without overhauling it, so itââ¬â¢s basically the same components. It doesnââ¬â¢t seem justified that the costs should come out as you say. ALICE GORGA: Iââ¬â¢m not sure, Cory. Those costs look realistic, given how myà team upgraded the hardware. Sales probably just needs to reconsider how to position this thing. I think ââ¬â ED PRYOR: Wait, are we here to talk about positioning or pricing? Fiero and I already figured out how weââ¬â¢ll position the product, so letââ¬â¢s just get the pricing straightened out. For the exclusive use of B. Shi This document is authorized for use only by Bixi Shi in Organizational Behavior- Fall 2014 taught by Elaine Wong University of California ââ¬â Riverside from October 2014 to December 2014. TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial | 2184 HARVARD BUSINESS SCHOOL | BRIEFCASES 5 TONY BARREN: Well, we donââ¬â¢t perform miracles. The cost wonââ¬â¢t change, and Iââ¬â¢m not going to cut corners in production. I had my head handed to me the last time we had quality issues. ED PRYOR: Allen, your designers must be able to tweak something, right? Hate to say it, but maybe you guys need to go back to the drawing board and figure out how to solve this problem. ALLEN ROTH: Ed, weââ¬â¢re well into a couple of other projects now. Frankly, I donââ¬â¢t think this is Salesââ¬â¢ call to make. We already put other projects on hold for Aerial, and weââ¬â¢ve given you what you requested. The discussion continued, but it became clear the group was at an impasse. Richardson suggested ending the meeting: ââ¬Å"Why donââ¬â¢t we wrap it up for now and meet again next week? In the meantime Tony and the Design team should look for opportunities to cut these costs.â⬠As the meeting adjourned, Pryor announced to the room, ââ¬Å"If we canââ¬â¢t lower these costs and fix the finances on Aerial, I canââ¬â¢t sell it. I wonââ¬â¢t try.â⬠Resumption of Aerial Pre-Launch Meeting One Week Later Roth and Barren had spent much of the intervening week reviewing the cost estimates. When the team re-gathered on March 14, the participants seated themselves around the conference table (see Exhibit 5 for a seating chart). Becky Timmons, the CFO, was in attendance. At the last minute, Harold Whistler also decided to join the meeting. As Emma Richardson passed out copies of the new cost estimates, she explained that Roth and Barren had agreed to make minor changes to the Aerial prototype, and that they now felt it could be produced for approximately 8% less than the prior weekââ¬â¢s estimate. On this basis, the Aerial could be priced at $475, about $100 more than the current full-featured TerraCog GPS. A long silence followed, then Cory Wu spoke up. ââ¬Å"Eight percent-thatââ¬â¢s all? I donââ¬â¢t understand it. Iââ¬â¢d like to know where the differences lie between our costs and PostHasteââ¬â¢s on BirdsI. Thereââ¬â¢s got to be room for more cuts.â⬠Barren snorted derisively. ââ¬Å"You canââ¬â¢t wish away the costs,â⬠he said. ââ¬Å"Weââ¬â¢ve cut what we can. Last time we got pressured into being too aggressive on cost estimates and then we got burned when the price of plastic went through the roof. Iââ¬â¢m not making that mistake again.â⬠Allen Roth concurred, pointing to the drivers of the cost increase: ââ¬Å"Incorporating the satellite imagery requires five times as much memory as our standard graphics. That increases cost-but if you cut it, you undermine Aerialââ¬â¢s value proposition. Then we also did some reconfiguration internally, and that increases the labor required to put one of these together.â⬠He paused, surveying the frustrated faces around him. ââ¬Å"I donââ¬â¢t like the situation any more than the rest of you do, but weââ¬â¢ve got to be realistic. Look at the numbers in front of you-thereââ¬â¢s nothing we can do to further reduce costs.â⬠As everyone scrutinized the new cost estimates, the meeting broke into several conversations. Ed Pryor and Richardson huddled together, while Allen Roth and Tony Barren carried on a conversation with Harold Whistler. After several minutes, Richardson realized she needed to get the discussion back on track. She addressed the entire group, saying, ââ¬Å"We have the estimates, so we just have to set a price that makes sense for the company. What do you think, Ed?â⬠ED PRYOR: We have to consider the selling price of the Aerial relative to competition. Posthaste is selling at around $250 to dealers, which means they retail for around $400. Garmin just announced For the exclusive use of B. Shi This document is authorized for use only by Bixi Shi in Organizational Behavior- Fall 2014 taught by Elaine Wong University of California ââ¬â Riverside from October 2014 to December 2014. 2184 | TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial 6 BRIEFCASES | HARVARD BUSINESS SCHOOL their satellite-image version, which will hit shelves at somewhere around $395 MSRP. You all are talking about $475 retail, and thatââ¬â¢s too high. We have to be in the ball park with our list price or weââ¬â¢ll be shut out of the game. EMMA RICHARDSON: What should list price be? ED PRYOR: $425 tops-but we should be lower than that if we are going to be aggressive at recapturing lost share. Letââ¬â¢s not kid ourselves. The way weââ¬â¢re trending, same-store sales will be down 10% this year. And this is with the GPS handheld market growing. HAROLD WHISTLER: What if we relax our margin requirements for once? BECKY TIMMONS: Absolutely not. Weââ¬â¢re cutting it close already. HAROLD WHISTLER: Okay, then how about a redesign? Letââ¬â¢s go to market with what we have, and Iââ¬â¢ll have my team take another look at possible changes that we can incorporate later. ALLEN ROTH: Iââ¬â¢m afraid thatââ¬â¢s wishful thinking, Harold. Given the product requirements the sales team called for, the cost is as low as it will get. CORY WU: I donââ¬â¢t know about that. The changes we made to meet salesââ¬â¢ requirements were not enormous. Why would they contribute to such a large increase in projected labor costs? TONY BARREN: Cory, you and Harold can run the numbers for yourself. Then youââ¬â¢ll see that these high costs are real. BECKY TIMMONS: Iââ¬â¢d still feel more comfortable if we could price it at $500 retail. With fuel costs still rising, the cost to get these here from Shenzhen will only increase, and we run the risk of our margins really getting squeezed. ED PRYOR: Becky, you donââ¬â¢t understand how competitive this market is! Even at $475, why would anyone give us shelf space? We are late to market and weââ¬â¢d be pricing at a substantial premium. And is the product superior enough to justify that premium? Iââ¬â¢ve been trying out our prototypes and Iââ¬â¢m concerned about the speed. The update speed is terrible, and switching between functions is just ââ¬â ALLEN ROTH: Come on, donââ¬â¢t start talking speed now. We were clear from the start that we would trade some speed to get new functionality and features. ED PRYOR: Well, my sales managers are going to be fuming. Fiero told themà Aerial would be available at $400, and now you are talking about a minimum of $75 more than that. I still want to see Cory or Harold take a crack at reducing unit cost. Emma Richardson took a deep breath. The company needed a ââ¬Å"go/no-goâ⬠decision on the existing Aerial, and whether to do so at a competitive price in the hope that costs might be cut in the future, or at a high price. She wondered fleetingly what the consequences might be if the company abandoned Aerial altogether. As things stood, the arguments and finger-pointing were bound to continue, and the group would never come to a decision on its own.
Subscribe to:
Posts (Atom)