Calorie Intake

My calorie intake for the three days isn't appropriate. I documented each item I ate, surprisingly it wasn't as high as I imagined it to be. I thought it would be a lot higher because I don't watch what I eat Eke I should. My calorie intake should be about 2000 and it was around 2869 on day 1. Even though I went over 869 calories each calorie can affect the body. Calories will affect weight, health, and energy levels. If a person eats more than they burn they gain weight. Same If someone burns more than they eat they will lose wait.Just as If someone eats as much as they burn then they eat the weight will remain the same. If someone calorie intakes too low it may cause reduced muscle mass (Calorie Explained). If there are no food energy sources to keep the vital organs functioning it uses the muscle mass for energy, so it will make the person feel sluggish and tired. A high calorie diet puts stress on the body. It can increase the risk of diabetes, heart disease, and length of life. As I mentioned earlier about muscle mass the body mass Index or IBM allows anyone to figure out their body mass according to their weight and height (Merriam Webster).My IBM is 17. 5(Calculate Body Mass index). It is considered underweight, but I am still healthy a small frame runs in my family. However if it wasn't hereditary I would try to find way to boost my IBM to a normal range of 18. 5. B. The DIR for each nutrient over the three days that I record what I ate†¦.. The DIR for carbohydrates was 130, It was being 75 and 300 percent. The DIR for fiber was 25, and was between 75 and 300 percent. Linoleum Acids DIR was 12 and It was less than 75%. To increase my DIR I would try to eat chicken or pizza. Cholesterol was 30 and the percent was less than 75%.TO increase cholesterol DIR I would try and eat more eggs or sausage. Calcium is 1000 and it was between 75 and 300 percent. Sodium was 1500 and less than 75%. To help increase my sodium intake I would try to eat bacon In the morning or cheese as a snack. Copper Is 900 and between 75 and 300 percent. Iron DIR Is 18 and was between 75 and 300%. Magnesium Is 310 and between 75-300%. Selenium Is 55 and less than 75%. To Increase selenium I could eat more whole grains or eat more fish. Zinc is 8 and less than 75%. To help increase zinc I could eat more spinach or prop. Vitamin A is 700 and between 75-300%. 6 is 1. And less than 75%. 812 is 2. 4 is less than 75%. Eating bananas or lean pork would help increase 8†³Ã¢â‚¬Ëœ DIR. Vitamin C Is 75 is less than 75%. I could try to eat more strawberries and oranges to raise Valiant C DIR. Vitamin D Is 25 and between 75 and 300%. Vitamin E Is 15 and between 75 and 300%. Vitamin K Is 90 Is less than 75%. Trying to eat more beans and strawberries to increase DIR of Vitamin K. Foliate is 400 and is between 75 and 300%. Thiamin is 1. 1 and less than 75%. Eating more bread and nuts can increase DIR. Niacin is 14 and less than 75%. I can eat more chicken and peanuts to increase level.Cooling is 425 and is between 75-300%. Potassium is 4700 and over 300%. If your body has to much potassium It can lead to hyperemia. Phosphorus was 700 and over 300%. Too much LLC. Some changes in my diet that I could make would be choosing something more healthy as a substitute for the unhealthy item. Instead of ranch and butter on a bake potato I could pass on that and Just eat the bake potato as is. Also, before I throw mayo. On a slice of bread try to replace it with mustard. My intake of saturated fat was 1 1. 67% which is a little high. Considering it should be around or less than 10% of total calories.If it was much higher than that it would be a concern of mine because trans/saturated fat is considered the worst type of fat by some doctors. This type so fat will raise the â€Å"bad† cholesterol, OLD, and lower the good cholesterol, HAD, in your body. A combination of the two cholesterol being altered can increase many health risk such as heart disease. 2. With that being said I can take steps in the right direction to make more healthy choices and have a healthier life style. I could switch from red meat to strictly sea food. I would eliminate things such as steak from my diet, to lower cholesterol, that would lead too serious of problems.One problem resulting from a lot of red meat in the diet and the level of cholesterol being raised would be heart disease. Another problem with red meat is it is linked to colon cancer (Dry. Sears). A change I could make other than red meat would be to take more vitamins to insure I get the recommended amount for each vitamin. I don't drink a lot of milk so I don't get the vitamin D I should. Taking a vitamin D pill or putting milk would help so later on in life I don't develop osteoporosis or something of that nature. The hardest of changes for me would be not to cook in or eat foods that have been cooked in oil.

End of Life Ethical Issues Essay

In this workshop activity, you are required to investigate and report on ONE ethical principle as it is demonstrated in a case study situation, then review and assess the reports prepared by your fellow students.Read the case studies below and decide which ethical principles are involved in each situation: (a) describe the principle  Principle of Respect for Autonomy The Webster dictionary (2002) defines Autonomy as â€Å"personal rule of the self that is free from both controlling interferences by others and from personal limitations that prevent meaningful choice.† And in keeping with this definition we, as registered nurses, must respect the right for individuals to act intentionally, with understanding, and without controlling influences to their free will. (b) explain how it applies in the case study situation  The difficulties, and moral dilemma’s, that are encountered in making â€Å"end of life† verves â€Å"quality of life† decisions involved in situations like Edward Biltons should always be related to the principal of respect for autonomy, when the patient has competently made their own choices. The ICU nursing staff and Mr Bilton’s parents need to accept and acknowledge that Edward has made his own choices based on his own values and belief systems. As health care professionals that will experience similar situations to this, it is important to not have own morals and beliefs influence our patients’ decisions about their care. In the health care environment, an individuals’ autonomy is applied through obtaining informed consent. It could be argued that he has not formally withdrawn consent for treatment as he is unable to communicate at this stage, but his living will sets out that in the event of an accident he does not wish to be artificially kept alive should he be fully dependent and disabled . Clearly this dependence and disability is evident in the fact that despite he should regain consciousness, he will be severely neurologically impaired. (c) offer your perspective on or resolution of the dilemma. You need to rationalise your perspective using the ethical principles and practices you have researched  With this scenario, other people must afford Edward the respect he deserves, give him the means to exercise his will, and not contradict his previously made decisions pertaining to his autonomy. The principle of respect for autonomy indicates that individuals’ should be allowed to freely make their own decisions in relation to the health care they receive. We grant this freedom of autonomy to our patients when they can give their consent to, or refusal from, treatment whilst in our health care facility and this same respect for their autonomy should be afforded in situations like Edward Biltons. In this situation Edward Bilton has previously and in sound mind made a decision of his future in certain circumstances.

Plantaze

INTERNATIONALIZATION OF SEE-FIRMS Final Group Report Table of content 1 1. 1 1. 2 1. 3 INTRODUCTION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1 Background Description †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1 Research Purpose †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Structure of the Report†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 2 2. 1 2. 2 RESEARCH METHODOLOGY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 Data Collection †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 Data Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 3. 1 3. 2 3. 3 CASE STUDY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Company Description (www. plantaze. com) †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Internationalization Process†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 Internationalization Motives †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 4. 1 4. 2 ANALYSIS AND INTERPRETATION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 Theoretical Background †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 11 Application of the Uppsala Model †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 5 5. 1 5. 2 IMPLICATIONS AND LIMITATIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 Implications of the Study †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 Limitations of the Study †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 6 7 8 CONCLUSION AND FUTURE RESEARCH †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 REFERENCES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 APPENDIX †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 1 Introduction In this chapter the background of the case study will be presented, as well as the purpose of the study will be stated, before an overview of the structure of this report is given. 1. 1 Background Description Today, many companies take the step to establish themselves abroad. The motives for internationalization are many. Perhaps the home market is saturated, presence in a certain country grants access to strategic resources or there are cluster effects to be explored in a specific region.The decision makers of the companies that are becoming international have different experience, are in different situations and consider different motives before taking the step into the international market. (Masum/Fernandez 2008, 2) For the past few decades researchers have been debating over existing theories and developing new theories of international business to explain why and how companies internationalize. Internationalization theories are explaining different internationalization processes, which are taking place when companies expand across national borders.Ranges of internationalization have been discussed in various investigations with the conclusion that the majority of these frameworks fail to explain internationalization behavior of various companies, however, this doesn’t mean that they are not usefu l at all. (Pett 2008, 1) It is inappropriate to approach the internationalization process without formulating a strategy. Without a proper strategy the firm is about to fail in their internationalization. Formulating a strategy also involves deciding hen, how and which markets to enter. There are several market entry modes a firm can choose from, such as exporting, contractual relationships (licensing, franchising), as well as equity or ownership-based international business activities like FDI or collaborative ventures. (Masum/Fernandez 2008, 2) 1. 2 Research Purpose The purpose of this study is to gain a better understanding of the internationalization process of a SEE company, particularly the usefulness of the main theory: the Uppsala Model. 1 1. 3 Structure of the ReportThe report is divided into six major parts: Introduction, Research Methodology, Case Study, Analysis and Interpretation, Implications and Limitations, and our Findings and Conclusion. The introduction part conta ins the background description of the general topic and the research purpose. Followed by the Research Methodology part, where the research method, data collection and data analysis is described. Then the chosen company is presented in particular and their internationalization process and their motives for internationalization are discussed.In the Analysis and Interpretation chapter the theoretical background and to which extend the company followed the theory is presented, along with a broad discussion of the gathered empirical data. There are also some implications and limitations mentioned in the next chapter. In the conclusion there is a brief presentation of the findings as well as possible further research on the topic. 2 2. 1 Research Methodology Data Collection The data collected and used in this analysis has been mainly collected from websites and online databases. This means that the method applied was Desk Research.As depicted by name Desk Research is the research techniq ue that is mainly acquired by sitting at a desk. It involves collecting data from existing resources and, compared to Field Research, is the cheapest and quickest option. Nevertheless, there is always the problem of the validity, objectivity and credibility of the data found. There are basically two types of desk research: Internal Desk Research and External Desk Research. Whereas the former is being used only in corporations or companies that possess an internal database, the latter can be done by anyone.External Desk Research is the actual method that was used when gathering information about the company, about the market and about other countries. 2. 2 Data Analysis First of all, it has been decided to go with the company Plantaze. Afterwards, a huge amount of data about the company’s history, strategy and current situation has been gath2 ered directly from their official website, plantaze. com. Moreover, detailed information about their products and production process has been found here.Additional financial and statistical information was found on the website of the Montenegro Stock Exchange (MNSE), montenegrobreza. com, where the company is listed and traded. Normally, looking and searching for data in online databases is very expensive. Fortunately, there has been access to the WU network, where many online databases are available for the research. ‘Amadeus’, ‘Factiva’ and others have given supplementary data about the company’s foreign subsidiaries for example that were not that clear in the places looked before.Actually, the main difficulty was finding data about the company’s operations abroad. For that reason it was necessary to get in contact with the Plantaze company in order to get more accurate data on their internationalization process. The people were kind enough and shared some very important facts and dates that completed the information pool that was needed. In order to work on the Excel sheets , economic, political and geographical data on the countries in which the Plantaze company is directly or indirectly doing business were needed.For this, the official websites of the specific countries governments and other websites of some important international organization like the World Bank or the CIA World Factbook were used. Before starting to write about the company’s past, present and future situation in the company description, articles from the press about the company and its operations were read. Also a look at various customer reports and trade association reviews about the company were necessary, so that an objective and closer insight to the true image of the analyzed company could be provided.Psychic Distance Psychic distance is defined as factors such as differences in language, culture, political systems, etc. , which disturb the flow of information between the firm and the market. Psychic distance chain refers to economic, geographical and cultural distanc e. (Johanson/Wiedersheim-Paul 1975, 308). Hofstede’s model of cultural dimensions from 1970s as one of the first theories that could be used to explain observed differences between cultures, has become an internationally recognized standard and major resource in cross-cultural studies. The original theory identified four cultural dimensions for distinguishing cultures: †¢ Power distance dimension (PD) focuses on the degree of inequality between people with and without power in society; †¢ Individualism dimension (IDV) refers to strength of interpersonal connections and share of responsibility among people; †¢ Uncertainty Avoidance Index (UAI) measures degree of tolerance towards uncertainty and unknown situations and †¢ Masculinity (MAS) referring to gender differentiations and inequity in society.After some more researches Hofstede added a fifth dimension – long-term orientation (LTO) which relates to how much society values long-term devotion to t raditional values; and in the 2010 a sixth dimension – Indulgence versus restraint defining the attitude of society towards gratification of basic and natural human needs related enjoying life and having fun. (mindtools. com 2012) The following factors were used for this case study: The geographical distance is an important factor to calculate transportation cost from the production facility in Montenegro to the sales markets abroad.The figure was calculated by measuring the air line distance from Podgorica (Montenegrin capital) to the capital of the reference country. It is the most important figure for Plantaze as it is a mainly exporting company. So this factor was overweighed against all the other chosen factors. The cultural distance consists of the above-mentioned dimensions, power distance, uncertainty avoidance, individualism, and masculinity. Regarding to Hofstede the differences of the dimension of country A and the reference country, i. e. Montenegro, are calculate d in a first step.This difference has to be squared and divided by the variance of the whole spectrum of countries. Cultural distance in exporting is important because of the sheer nature of the product. Drinking wine is something that is embed in the national culture, thus making the cultural distance a factor that needs to be taken into consideration. Furthermore for marketing and communication reasons the cultural distance between two countries can make a company change the strategy. 4 It was calculated by using the Kogut and Singh-Formula:When calculating the internationalization process of the company regarding only the subsidiaries and the joint venture the cultural distance variable gains importance. Because entering a market in this way, by greenfield investment, a company has to think and act on a long-term level. The country’s culture can be decisive in whether the own company will be successful or not. The â€Å"wine† distance measures the wine consumption p er capita of a nation compared to Montenegro. This figure is relevant because it would make no sense for a wine producing company to enter a market that scores low.As already mentioned wine consumption is something that is highly linked to the nation’s culture and their drinking habits. That is why this is a relevant figure. To calculate the wine distance, the same formula as above has been used. The economic distance was not taken into account because of the fact, that it is not relevant for this type of industry. To calculate the psychic distance the above mentioned factors have been standardized to numbers between 0 and 1, while 0 stands for Montenegro respectively a country with the same figures than Montenegro and 1 for the country with the highest distance to the reference country.The factors have been weighted according to their importance. In the exporting internationalization process the geographical distance has been weighted with 60%, the cultural and the â€Å"wi ne† distance were weighted with 20% each. In the subsidiary and joint venture internationalization process the geographical distance has also been weighted with 60%, the cultural distance with 40% and the wine distance was not taken into consideration. 5 3 3. 1 Case Study Company Description (www. plantaze. com) ‘13jul-Plantaze’ is a wine-producing company from Montenegro.Its history takes us back more than 100 years, more specifically to 1907 when the Montenegrin wine ‘Vranac’ won its first prize in London. It was but more than 50 years later, when the government of Montenegro decided to invest in the development of agriculture, that the led to the creation of the company Plantaze as we know it today. Between 1964 and 1974, Plantaze expanded the vineyard to 377 ha and the wine cellar capacity to 26. 000 hl. In the 1977-1982 period, the company realized one of its most important projects.Transforming the arid and rocky soil of the ‘Cemovsko†™ field into one of the largest green oasis of the Balkan area is not something to be overlooked. 62 million U. S. dollars cost the creation of the largest vineyard in Europe at that time, covering 2000 ha of orchards and vineyards. The geographical position makes this place so unique. Located at about 30 km from the Adriatic See, on the river Bojana, the ‘Cemovsko’ field has a microclimate of its own, suitable for quality grape production.In 1979 the main processing plant was built near the vineyard. ‘Agrougostitelj’, ‘Agrokom’, ‘Agroekonomski institut’, ‘Uvoz-izvoz’ and ‘Ribnjaci’ merged with Plantaze in 1998. 2005 was the year in which the company established a joint venture with their Italian partners and added the first sparkling wine ‘Val’ to the product range. During the years, they successfully obtained international certificates of quality such as the ISO 9001:2000; HACCAP or the IS O 14000. In 2007, Plantaze invested 2 million euros in the remarkable wine cellar ‘Sipcanik’.Located at 30 meters below the soil, covering about 7000 m2, this completely natural area has the perfect climatic and technological conditions to age over 2 million liters of wine in wooden barrels, oak barriques and bottles. In the last 10 years exports have risen by 530% to 4 million bottles in 2008. The company exports to over 30 countries situated all over the world, from the U. S. A to Canada, to the E. U. countries, Russia, China and Australia. Today, Plantaze still owns and manages Europe’s biggest vineyard at ‘Cemovsko’ field, which stands on 2310 ha and contains three wine cellars with a capacity of 310. 00 hl. They recently announced that the investments made in the period 2003-2009 were over 40 million euros. With an annual production of 22 6 million kilos per year, Plantaze is the biggest producer of wine and table grapes in Montenegro. A quick l ook at their company’s official website will be enough to understand that this company has something special about it. Their mission statement is to produce worldclass quality products with which they can satisfy their loyal customers and gain new ones.It must be added that the company is not just producing and selling wine and grapes. An 85ha peach plantation that averages an annual production of 1. 200 tons is one of their most prized possessions. As of 1957, Plantaze produces and sells about 100 tons of Californian trout. The ‘Mareza’ fish pond covers 6. 000 m2 and is exclusively fed by fresh spring water. The grapevines used are not being bought; they are being grown on a nursery of rootstocks that spreads over 40 ha. Two restaurants complete their portfolio. Mareza’, a restaurant with a capacity of over 400 seats, located 5 km outside of Podgorica and ‘Jezero’, with a capacity of over 300 guests, located along the main road between Podgor ica and Petrovac, on the shore of the beautiful and relaxing Skadar Lake appear in every touristic guide of Montenegro. Coming back to the wine business, we can see that Plantaze offers a great variety of wines. 11 types of red wine and 6 types of white wine are currently in their catalogue. Furthermore, we can find a special rose wine made from red grapes applied in the white wines production. Three types of brandy complete the offer.The Plantaze company is probably one of the most successful brands and businesses in Montenegro. Their incredible attitude towards the environment and their fine attention to detail stands before every product they make. The Plantaze company must be a proud flag-bearer and ambassador of Montenegro because they managed to achieve something that many firms only dream of, and that is to produce traditional goods from your local country and culture at the highest quality possible. For this reason and others, the company Plantaze has been chosen to be analy zed and presented. 3. 2 Internationalization ProcessBecause the company has a history of over 40 years, in which it sold goods on an international level, the need for splitting up the process into more than one period was created. Therefore, the internationalization process was divided into four different phases. 7 These phases are not equal. For example, the first period is twenty years long, whereas the second one is fifteen years long. The reason for this is that the first two periods were slower from the internationalization point of view than the last two. So, in the first period that is between 1964 and 1984, they started selling their products on the Yugoslavian market and in Albania.The argumentation for the fact that Yugoslavia has been added to the internationalization process is actually very easy to follow. Because for the company at stake the cultural distance is of great importance, it was clear that Yugoslavia had to appear on the graph. Although from a political and technical point of view, there was only one single country and one single market, taking the cultural differences into consideration, the situation changes dramatically. The seven entities that are now seven different countries have their own traditions, habits and culture.Therefore, selling products all over the ex-Yugoslavian territory makes the process an international one. Furthermore, if the Uppsala Model is the center point of this presentation, gaining knowledge about different cultures and using it into new markets, like Plantaze did, just proves out argumentation. In the second phase, from 1985 and 2000, numerous other markets were penetrated. Of course, after 1991 and the fall of ex-Yugoslavia, the products sold into these new established countries could officially be called exports. The company entered some Central European countries like the Czech Republic, Slovakia, Poland and Hungary.In the east, Bulgaria was chosen to start exporting to. The first countries from the E uropean Union in 8 which the firm started internationalizing were Italy, France and the U. K. , in which they established a wholly-owned sales subsidiary in London. Russia was the first distant market they choose. In the third period, or between 2001 and 2004, the focus remained on Central and Western Europe. Germany, Austria, the Netherlands, Belgium and Sweden were the next markets they entered. The third period also meant a development of the internationalization process.Some very distant markets such as China and the United States were submitted to the process. The fourth and final phase takes place from 2005 until the present day, in 2012. Norway and Switzerland are the newest addition from the European continent, while Canada and Australia are another two distant markets to which the company started exporting. 3. 3 Internationalization Motives To figure out the motives for the internationalization of Plantaze a quick look at Dunning’s different categories of motives is necessary. Strategic Asset Seeking Resource Seeking Efficiency Seeking Motives for Internationalization Network SeekingMarket Seeking 9 Dunning (2000) explains how market and resource seeking motives have been the two most recognized categories of motives before. These two categories still correspond to most first time internationalization by firms. Overall, efficiency seeking and strategic asset seeking motives increase in significance and are more common as motives for companies already engaged in multinational activity. He also shows that closer relations with customers and durable relations with suppliers were important motives. Furthermore, he suggests that internationalization was more driven by opportunities rather than threats. Hansson/Hedin 2007, 5) Market Seekers: Companies that invest in a particular country or region with the intention to supply goods and services are called market seekers. This category of motives focuses on demand aspects. (Hansson/Hedin 2007, 6) Plant aze’s home market is limited as Montenegro is a small country and so it brings the firm not enough revenues. This fact and also to diversify the customer base of Plantaze to reduce the dependence on the home market are reasons why they decided to go abroad. Resource Seekers: According to Dunning (1993) resource seeking means to invest abroad in order to obtain resources.This could be resources that can be acquired at a lower comparative cost, or simply does not exist at all in the home country. (Hansson/Hedin 2007, 7) Plantaze is not seen as a resource seeking company, as the conditions for producing in Montenegro are unique. Sometimes skills and capabilities are resources that can be used through collaboration with a business partner. Efficiency Seekers: The purpose is to rationalize structures of established investments in order to gain from common governance. Often those benefits come from economies of scale, but also risk diversification.Therefore, efficiency seeking is s een as gaining from the differences of factor 10 endowments, cultures, institutional arrangements, and economic systems etc. (Hansson/Hedin 2007, 7) Economies of scale and scope as well as the increase of sales and profits are issues that an efficiency seeker often focuses on, and so does Plantaze. Another motive for the company to internationalize is that Plantaze might be able to lower the tax burden. Strategic Resource Seekers: Strategic resources are for example patents, knowledge, the skills of employees, and strategic supplies necessary for developing comparative advantages.By focusing on developing strategic resources the company supports its long term strategic objectives. (Hansson/Hedin 2007, 8) Plantaze’s aim is it to create brand awareness in foreign countries and to transmit the positive image of Montenegro by producing a traditional product from the home country and selling it to other countries. Network Seekers: The network orientation reflects to what extent co mpanies participate in alliances, cooperative ventures and other forms of similar social connections. Networks outside the organization can be very important for the companies.Companies intend to nurse, develop and expand their existing networks. (Hansson/Hedin 2007, 9) Developing useful foreign relationships is an important factor for Plantaze. Their partner have knowledge of the local markets and the necessary skills. 4 4. 1 Analysis and Interpretation Theoretical Background The Uppsala Internationalization Model The Uppsala Internationalization model is a model of a firm's choice of market and form of entry when going abroad. It was developed by a number of Swedish researchers, Johanson, Wiedersheim-Paul and Vahlne (1975, 1977). The model was named after the business 11 chool of the Swedish city and based on the process of internationalization of four Swedish manufacturing companies with operations in more than 20 countries. The model assumes that internationalization is a progre ssive process made of several successive stages. The main aspects of internationalization are market knowledge and level of commitment in a particular host country. The major obstacle to international operations is the lack of knowledge about foreign markets and operations, which can be overtaken gradually by actively engaging in such foreign environments (Forsgren, Hogstrom, 2004; Lakomaa, 2009).The Swedish researchers noticed that observed companies had begun to operate abroad in nearby markets and then slowly penetrated markets far away. They entered new markets through export, and after several years of exports the company could establish wholly owned or majority-owned operations. Thus, the process of progressive internationalization is built on four stages that are: sporadic export, export via independent representatives, foreign sales subsidiaries and production and manufacturing units in foreign markets. Source: Forgren and Johanson 1975, 16 12The figure shows that additional market commitment will be made in small steps, both in the market commitment and geographical dimension. The geographical dimension means that firms enter new markets with successively greater psychic distance, defined in terms of factors like language differences, culture and political system, etc. Therefore, companies internationalize by going to those markets they can most easily understand and where the perceived market uncertainty is low. Criticism of the Uppsala Model There were several critics referring to the Uppsala model.Some of them are that the model is too deterministic (Reid, 1983; Turnbull, 1987) or that the model doses not take into account interdependencies between different country markets (Johanson and Mattson, 1986). Studies have shown that the model is not valid for service industries, situations of highly internationalized companies and industries and that the whole internationalization process has speeded up. Firms also tend to enter ‘distant' markets i n terms of psychic distance at an early stage (leap-frogging tendency), because the world has become much more homogenous and that has lead to that psychic distance has decreased. . 2 Application of the Uppsala Model Only by simply looking at the internationalization process that the Plantaze company followed over the years, it is easy to conclude that the firm followed more or less the theory that the Uppsala Model describes. In the beginning, for example, when the firm started selling their products only on the ex-Yugoslavian territory and Albania without having the need of going to distant markets is clearly the kind of behavior that a newly founded enterprise would have in the Uppsala Model.After learning from this experience (because in from the companies point of view, since culture plays an important factor, it learned a great deal from selling on the whole territory of Yugoslavia, where seven different entities and cultures were mashed together under one flag) they could sta rt and wonder off to other countries and cultures. In the second phase of their internationalization process, countries from Eastern Europe were chosen and some small steps to the Western part of Europe were also made. The first important milestone in the company’s history is the opening of their first sales-subsidiary in the United Kingdom.It is called Monteadria and it is located in 13 London. This particular step can be noted as the exception from the rule since the firm ventured off to a distant market directly by establishing a sales-subsidiary and not starting by exporting and then gradually develop. Nevertheless, it is quite difficult for a company that is active on the market to truly and without exceptions follow the Uppsala Model since it does not take into account other important factors such as market attractiveness, market size and others.The globalization and internationalization effect can be seen in every market and in every country. Because of that, because o f the massive inflow of information and data available in a blink of an eye, companies show leapfrogging tendencies and go to more distant markets earlier. The overall psychic distance between countries has decreased. Plantaze took full advantage of the fast moving business world in which they operate. The company grew rapidly and intensified export activities worldwide. As a result, their export figure has increased by more than 550% since 2003. 5. 1 Implications and Limitations Implications of the Study The main implication of the study would surely represent if whether or not managers that handle the company use the Uppsala Model when entering the internationalization process. Just by looking at the export path explained in the Excel sheet above, it is easy to conclude that the firm applied the model. Of course, the fact that the managers specifically used the Uppsala Model or that the pattern used just randomly fits, is something that needs to be analyzed more in detail.In contr ast, when it comes to the path chosen by the company for entering new markets and countries via wholly-owned or partially-owned subsidiaries or joint-venture, the situation changes. The path chosen is not similar to the Uppsala Model. One argument would be that they chose to enter the British market with a subsidiary in London before opening one in Belgrade or Sarajevo. The logical step, according to the Uppsala Model would be to start with establishment of subsidiaries in neighboring countries and afterwards spread out to other, more foreign countries. 14 5. 2 Limitations of the StudyThe main limitation of this study would be that it revolves around the Uppsala Model and thus making its criticism point, the major liability of the study. The model is old and was not updated to the current economic situation. For example, in today’s business world, companies have the tendency to leapfrog some entry modes and to go directly to more physically distant markets. The world today ha s become more homogenous because of the globalization process that has been going on in the last decades and the psychic distance has also decreased. The company described and used in the study, Plantaze, is not the perfect fit to the Uppsala Model.The point that the company posses enough financial resources leads to the fact that consequences of their commitments won’t have a huge impact on their balance sheets. Moreover, the company is not obliged to go abroad to gain new market knowledge and gain experience because today they can call on other sources for additional information and know-how. Universities, government databases and institutions or other companies from the branch can provide this kind of data. Regarding the limitations of the research, the fact that the findings are closely linked to a specific context is underlying.This research has been confined to a few countries in the European Union. This may not be sufficient to generalize our findings in this paper. Ho wever, this paper points out the direction and may act as an indicator how our company internationalized. Thus, we believe that our findings are useful to better understand the driving forces of the internationalization of Plantaze. 6 Conclusion and Future Research The path chosen by the Plantaze company follows to a certain degree the theory of internationalization that the Uppsala Model presents.No one knows for sure if the higher management of the company intentionally acted in this manner or if the match is just a random one. To better understand their internationalization process, in future studies, interviews with the persons responsible and who took the decisions must be conducted. Only then, only with that data, the study can truly show how the company reacted to the internationalization process and how they proceeded. Nevertheless, without having that data available to be 15 used, and only through analyzing ex-post the steps taken in the past, the Uppsala Model provides a p ossible framework for companies to follow.In addition to future research possibilities arising directly from the limitations, it should be recommended that future research may explore longitudinal research design for further contribution to international business in this context. 16 7 References Publications Birn, Robin J. 2001. The Handbook of International Market Research Techniques, London 2001 Hansson, Anders and Hedin, Kim. 2007. Motives for internationalization. Small companies in Swedish incubators and science parks, Uppsala Hofstede, Geert. 2001. Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations.Thousand Oaks, CA: Sage. Johanson, Jan and Wiedersheim-Paul, Finn. 1975. The Internationalization of the Firm – Four Swedish Cases, in: The Journal of Management Studies, 1975, 305-322 Kent, Raymond A. 1993. Marketing Research in Action, New York Kogut, B. and H. Singh. 1988. The Effect of National Culture on the Choice of Entry Mode, in: Journal of International Business Studies, 19(3): 411–432. Masum, Mohibul Islam and Fernandez Alejandra. 2008. Internationalization-Process of SMEs: Strategies and Methods, Vasteras. Pett, Timothy L. 2008.Examining SME Internationalization Motives as an Extension of Competitive Strategy, in: Journal of Business and Entrepreneurship, 2008, 1-13. Internet CIA Factbook n. a. : Hofstede’s Cultural Dimensions. Understanding Workplace Values Around the World http://www. mindtools. com/pages/article/newLDR_66. htm, accessed October 15, 2012. 17 Plantaze www. plantaze. com , accessed October 15, 2012. WHO http://www. who. int/substance_abuse/publications/global_alcohol_report/msbgsruprofiles. pdf, accessed October 15, 2012. Worldbank http://data. worldbank. org/indicator/NY. GDP. PCAP. CD, accessed October 15, 2012. 18 8 Appendix 19

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Should the Death Penalty be Abolished - Essay Example Of late, therefore, advocates of the death penalty are relying on economic arguments to buttress their position that the death penalty is an appropriate and valid punishment by focusing mainly on the issue of deterrence. As the New York Times put it: â€Å"Does Death Penalty Save Lives?† (Liptak, 2007). Likewise, anti-death advocates are steering clear of emotive language and using hard statistics as well but to demonstrate non-deterrence, racial bias, judicial fallibility and the like. Analyzing the two competing positions on the death penalty, this paper’s thesis is that those arguing for capital punishment uses economics as lens of analysis and emphasises deterrence rather than retribution, and those who argue against capital punishment use an economic, legal and sociological frame. Death Penalty Advocates favour economics-based arguments In the fairly recent work of Dezhbakhsh, Rubin and Shepherd, econometrics was used to determine the deterrent effect of the death penalty and it was found that â€Å"the legal change allowing executions beginning in 1977 has been associated with significant reductions in homicide† (page 373). ... d economist, Naci Mocan, who admitted being â€Å"personally opposed† to the death penalty (Liptak, 2007) had found that â€Å"each additional execution decreases homicides by about five, and each additional commutation increases homicides by the same amount, while an additional removal from death row generates one additional murder.† (Mocan and Gittings 453). Death Penalty Opponents use a combination of economics and sociological arguments There is, however, no shortage of critics to the argument that death penalty deters crimes, specifically homicide, and therefore saves lives. According to a paper written by Jeffrey Fagan from the Columbia Law School – Most of the studies fail to account for incarceration rates or life sentences, factors that may drive down crime rates via deterrence or incapacitation; one study that does so finds no effects of execution and a significant effect of prison conditions on crime rates. Another report shows incarceration effects th at dwarf the deterrent effects of execution. Most fail to account for complex social factors such as drug epidemics that are reliable predictors of fluctuations in the murder rate over time. The studies don't look separately at the subset of murders that are eligible for the death penalty, instead lumping all homicides together. Those who are against the death penalty have also provided evidence demonstrating that racial bias has played a big role in execution sentences, with scholars like Zeisel for example demonstrating that the death penalty was administered unequally, discriminating against black offenders and against murderers of white victims. (456). Barry Scheck, who is the co-founder and co-director of the Innocence Project, notes the case of Claude Jones, who could have been saved from the death row

Gun Control Research Paper Example | Topics and Well Written Essays - 1000 words - 6

Gun Control - Research Paper Example Crime rates have gone up drastically due to easy access to all manner of handguns, rifles, and automatic weapons. California has recorded a drastic increase in drug-related crimes, robberies, and rape in the past years due to gun possession. Moreover, gun owners feel they have the right to threaten, control, and mishandle other citizens using their weapons. Thus, is it necessary to illegalize possession of guns in California because they cause unnecessary deaths, more crimes and lawlessness, and increased violence in the society. Misuse of weapons leads to 50% of gun related incidences in the form of crimes and gun related lawlessness. In 2009, robbers, burglars, rapists, and drug criminals had easy access to weapons, leading to gang violence, intimidation, breaking of laws, and controlling the other people (Editorial 3). Citizens lived in fear due to rowdy criminals who can access handguns easily and threaten people’s lives. Massive access to different types of handguns, automatic rifles, and machine guns, has made it hard for police to keep up with combating crime in the state of California. Crimes happening in homes, schools, places, of work and on the streets due to guns increased by the day before enforcement of gun laws. Moreover, some gun owners take advantage of the situation and believe they have the right to end someone’s life, cause harm, and intimidate the person on the slightest provocation. Additionally, once guns are in circulation, they end up in the possession of wrong people w ho do not hesitate to use them on innocent citizens. Furthermore, once in possession of guns, criminals gain power over their victims and can inflict all sorts of harm including rape, and death. This power also has resulted in increased organized crimes as the criminals take advantage that they have guns to protect themselves and kill anyone against them. Nevertheless, misuse of weapons has decreased rapidly

Original topic in Advanced MAcroeconomics Essay

Original topic in Advanced MAcroeconomics - Essay Example The balance of payments is usually in deficit. (Adams, 2002, pp. 53-55) A country’s fiscal policy is the mix of government expenditure and revenue collection mechanism in an economy. Historically, governments collect revenues from taxes and their expenditures include public sector expenditures. (Auerbach, 1997, p. 88) A country’s monetary policy is a combination of activities by the state bank or central bank, the government and other financial institutions to control the demand and supply of money and interest rates in an economy. In a nutshell, the effect of each is dependent on the other and that is what the monetary policy aims to control. (Walsh, 2003, pp. 9-12) This case focuses on primarily on monetary policy. To gain a better understanding of how a monetary policy works, we first need to understand its two components i.e. money supply and interest rates. Money supply is generally divided into M1 and M2. Further classifications may also exist. The divisions are based on liquidity of the funds. M1 funds are the most liquid funds and include cash, very short term securities or securities equivalent to cash. M2 funds include those funds which are slightly less liquid than cash like current account deposits. As the liquidity decreases, the number after M increases. In my opinion interest rate is basically the cost of money. It is also the cost of borrowing or the return on investment. Interest rates have two components. The discount rate which is set by the central bank and is the rate at which the central bank lends to commercial banks. The other component is the market interest rate. I believe it differs because of bank’s spreads and their portfolio of customers. In my opinion, the developed nations have always moved towards a relaxed monetary policy as they promote free trade and trade liberalization. In addition the existing well defined systems in these economies allowed for and

Cohabitation Before Marriage Essay Example for Free

Cohabitation Before Marriage Essay Does living together before marriage help or hurt relationships? This question has plagued couples for the last few decades, as both the numbers of those living together without being married and the rate of divorce has grown. I think living together before marriage can only help people avoid divorce, as they are given the chance to see what it is like to live with either the specific person, or a person for the first time. This also brings up the questions of why divorce rates are up and whether it has anything to do with living together before marriage. I bring certain prejudices about it, believing that living together before marriage does not negatively impact couples’ ability to stay together after marriage, as I have seen it work many times. In the end, I will attempt to make the connection between the two, if there is one, or explain why people think there may be. SOURCES: Hurley, D. (2005, April 19). Divorce Rate: Its Not as High as You Think. The New York Times. Divorce Statistics Collection. Retrieved August 9, 2008, from http://www. divorcereform. org/nyt05. html Knadler, J. (2005, December). Is Five Years the New Forever? Cosmopolitan. Vol. 239, Iss. 6; pg. 149-152. Kramer, E. (2004, October). COHABITATION: JUST A PHASE? Psychology Today. Vol. 37, Iss. 5; pg. 28-29. Whether because of the instinct to procreate, emotional desire, or compulsion to follow social norms, human pair-bonding leads often to marriage. Defined as a social institution, religious sacrament, and personal commitment, marriage continues to evolve, growing to include a more relaxed attitude to divorce and the practice of cohabitation before marriage. Both of these subjects have sparked heated debates, with the issue of cohabitation before marriage being the latest movement in the realm of matrimony. While many opponents of cohabitation before marriage cite a lack of core family and moral values that have sanctified union through marriage for millennia, recent studies have shown that cohabitation before marriage is not only increasing in popularity, but may be beneficial compared to marriage first, as evidenced by the increasing divorce rate among married couples, the decrease of overall marriages, and the ever-changing landscape of marriage throughout history. Marriage between a man and a woman has long been the backbone of social cooperation and society itself. Marriage offered greater economic stability, the opportunity to produce heirs, and was often utilized as a tool to strengthen alliances between groups. Marriage echoed the foundational desire for societal regulations and norms, and like society, marriage continuously evolved, redefining itself and its purpose. From the days ancient Mesopotamia to Greece and Rome, marriage was largely a civic obligation. However, the proliferation of polytheistic religions as ultimate moral authorities transformed marriage into an expression of faith. Until the emergence of modern nation-states, most marriages were conducted under one or another religious regime. Starting with the Protestant Reformation, â€Å"most states took over their dominant religion’s marriage laws; debate has ensued ever since whenever a nation deviates from the still powerful religious rules that sanctify marriage† (Miller, 1999). Despite these dogmatic rules, outlawed actions such as unmarried cohabitation and divorce have become commonplace among couples, and the cause and effects are mixed. According to an analysis of new census figures by The New York Times, married couples, whose numbers have been declining for decades as a proportion of American households, have slipped into a minority in the United States. The American Community Survey, released in October by the Census Bureau, found that â€Å"49. 7 percent, or 55. 2 million, of the nation’s 111. 1 million households in 2005 were made up of married couples — with and without children — just shy of a majority and down from more than 52 percent five years earlier† (Hurley, 2005). This trend shows that less and less heterosexual couples are choosing to get married, instead preferring to cohabitate and have children without marriage. Cohabitation can have many important benefits that marriage cannot, even if it comes with no religious sanctification or government protection. Cohabitation before marriage can be for a variety of reasons. Some couples may use it to see if they can live with the person, while others may do it simply out of convenience, and still others may do it for more practical reasons such as to save money. Susan Sassler, a sociology professor at Ohio State University, interviewed undergraduate and graduate students who had been living with a romantic partner for at least three months and asked them why they decided to move in with their partners. Fewer than a third of interviewees reported discussing their ideas for the future before making the move, and even fewer had mentioned marriage in their discussions with their partners; nearly a fifth specifically stated that they weren’t using cohabitation as a trial for marriage, and the most commonly cited reasons for moving in together were â€Å"saving money, convenience and the need for housing† (Kramer, 2004). This study helps show that cohabitation before marriage is not necessarily anything more than a practical move on the part of the couple. Whether or not the couple gets married seems to be secondary to the mutually beneficial arrangement that can allow many young couples to pursue personal and professional goals more easily with the support system offered by such a thing as marriage, with the freedom offered by being single. In the United States, it is widely believed that one in two marriages will end in divorce, so while many couples live together out of sheer practicality, cohabitation may be a good way to avoid the increasing divorce rate. The rate of divorce today is considered to be roughly 43% by the National Center for Health Statistics but was moved back up to around 50% by the Census Bureau in 2002. Most recently, according to the New York Times, it has been revised downward to just over 40%. (Crouch, 2005) This lower figure could be due to the fact that less people are getting married and choosing instead to cohabitate, but it cannot be denied that less people are getting and staying married than ever before. The proliferation of cohabitation before marriage could be for a great number of reasons, including the increasingly fast pace of society, a more cynical view of traditional morality, or even the more evolved view that couples do not have to sanctify their union through religion or law. Studies on successful cohabitation are difficult to perform, and no concrete statistics such as divorce rates offer clear-cut answers to its ultimate success or failure. However, moving past religious and social dogma that often frowns upon cohabitation before marriage, it would seem to be preferential for young couples to do before getting married, and many have. According to Jessie Knadler of Cosmopolitan Magazine, â€Å"many couples today live together before they marry, roughly 70 percent versus less than 5 percent 40 years ago† (Knadler, 2005). While this number suggests that virtually all couples that marry live together first, it also leads to a pitfall that cohabitating couples must avoid, namely seeing marriage as the next logical step in the relationship. As evidenced in the Sassler study, many of these cohabitating couples are doing it out of practical reasons, sharing money, bank accounts, bills, and such; to move this arrangement into marriage without a strong foundation is a risky mistake that ends in divorce nearly half of the time. The casual acceptance of divorce in today’s society seems to offer couples an easy way out whenever they so choose, unlike a few short decades ago when divorce was considered taboo. Divorce ultimately costs not only the couple, but also society as a whole, in legal fees and wasted court time. While breakups are rarely pleasant, they can prevent many of these personal fights from entering the public arena. The success of any marriage, relationship, or partnership depends on the trust and commitment of those who enter into it. Cohabitation can be a good way to lead to marriage, but it takes work and honesty between both partners. If the partners see a future with each other, marriage is the next logical step. However, if they are living together out of convenience, perhaps marriage is a bad idea. And, while marriage continues to evolve and to some degree evaporate, human relationships will always be too complex and diverse to generalize. REFERENCES Crouch, J. (2005). Divorce Rates. Divorce Reform Page. Americans for Divorce. Retrieved August 9, 2008, from http://www. divorcereform. org/rates. html Hurley, D. (2005, April 19). Divorce Rate: Its Not as High as You Think. The New York Times. Divorce Statistics Collection. Retrieved August 9, 2008, from http://www. divorcereform. org/nyt05. html Knadler, J. (2005, December). Is Five Years the New Forever? Cosmopolitan. Vol. 239, Iss. 6; pg. 149-152. Kramer, E. (2004, October). COHABITATION: JUST A PHASE? Psychology Today. Vol. 37, Iss. 5; pg. 28-29. Miller, M. (1999, March/April). What is Marriage For? : A Conversation with E. J. Graff. UU World Magazine. 37 pars. Retrieved August 9, 2008, from http://www. uua. org/world/0399feat3. html

Trends and the Future of Public Service Essay Example for Free

Trends and the Future of Public Service Essay Introduction Public service organizations are the sectors that always receive considerable attention form the government. Beside their currently lower level of performance compare to private organizations, the attention is given due to governmental responsibilities is fulfilling demands of the people. Recently, the public service sector is evolving, partly due to the influence of a new management system called Outcome Based Management. In this paper, I am discussing the contents and philosophy of the Outcome Based management approach and how it influenced the public service sector in United States. Outcome Based Management II.1.  Ã‚  Ã‚  Ã‚   Emerging Trend Outcome based management (OBM) is the managerial framework that emphasizes more on forward looking activities. This managerial approach focuses on why are things done and what have actually been done. In a simple sentence, the term encourages managing for actual results. The term is often identified with the sentence: â€Å"better planning generates better outcomes†. The managerial framework first gained attention of public organization’s managers because of its commitment toward results. The public service is always known lo lag behind the private sector because of its weak commitment toward real achievements. This is reveled in various sectors of the public sector, including the environmental sector, health sector and even child-care. These sectors required a system that works based on real-hard results, and OBM’s characteristic that put forth alignment between services delivered and actual goal achievements is a dominant catalyst in the adoption of this concept into the public service sector.   II.2.  Ã‚  Ã‚  Ã‚   Elements of OBM There are several elements of OBM. The first is the outcome itself. Outcome is the impact, result or consequences for the organization of related parties. If the outcome of a particular project matched existing corporate objective, then the company have successfully performed the OBM. The second element of OBM is the services given. They are tools to achieve the outcomes determined earlier. The third element is the Key Performance Indicators. The performance indicators function as an analysis tool that determines whether the targeted outcomes are achieved or not. The traditional perspective perceived a company to perform three important activities, which are: planning, budgeting and reporting. According to the OBM perspective however, these activities can be explained further using a chain of detailed process, which includes: Formulation of corporate goals and strategic outcomes Formulation of mission statement and the strategic plan Formulation of budgets, including key performance indicator targets Delivery of services Performance reporting in annual reports Performance assessment Outcome Outcome is simply the reason why corporate activities are performed. There are actually three levels of outcomes, the first is corporate goals. It is the highest level of outcome and the most general one. The second is called strategic outcomes, which relate corporate goals into these parties: the people in general (community), the environment, the economy, the region and governance. Considerations of these factors brought to the finding of strategic outcomes. The third is called agency-level outcomes, which functions are to detail the general outcomes into more specific targets. The formulation of agency-level outcomes is the final step before performing the services Clearly defining corporate outcomes are important element of the OBM application. This is true because the outcome information will be used to direct the organization within its activities. For example, the outcome information is generally used by the corporate management to: trigger corrective actions like identifying problem areas that requires attention; identify best practices; motivate employees and to perform planning and budgeting activities. The outcome objective can also be used by external parties to: perform economic analysis, provide informed commentary, and perform benchmarking. Services   Ã‚  Ã‚  Ã‚  Ã‚   The next step in OBM after properly defining the right goals, strategic level outcomes and agency level outcomes is defining how each unit could contribute to the achievement of organizational goals. OBM stresses on the importance in finding the link between the desired outcome and the services delivered. This is necessary because according to the OBM resource should be allocated to any unit unless it can contribute to the achievement of organizational goals. Alignment between the goals and the service provided is a must because once such an alignment is achieved; the collection of costs and performance data is easier to perform. After defining the specific agendas of each unit of the organization, the next step within OBM is reviewing the service agendas. The common practice in OBM organizations is by developing a service checklist that will enable them to evaluate whether the services delivered are the right ones. Performance Indicators   Ã‚  Ã‚  Ã‚  Ã‚   The third step in the application of OBM is developing performance indicators. The presence of the right performance indicators will allow performances to be measured, evaluated, and improved. The general performance indicators in OBM are divided into two categories, which are: effectiveness indicators and efficiency indicators. The two categories should have at least three characteristics, which are: relevance, appropriateness and fair representative ness. Defining these indicators enables the organization to perform continuous improvement by identifying emerging issues and specify the best services to deal with the issues, and furthermore, improve organizational accountability.   II.3.  Ã‚  Ã‚  Ã‚   Expert’s Opinion about OBM   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The ideal implementation of the OBM concept supposedly generates the following conditions: Encourages information sharing between employees and externally with clients, partners, etc Encourage communication of organizational achievements Easier and more effective reporting activities Increased flexibility and scalability Lead to effective use of available business information for analytical reporting, decision making and forecasting. Improve operational efficiency Increased profitability from relationship with partners and suppliers Drive operating staff toward the achievements of strategic results, etc Taking account of these achievements, the OBM concept is generally benefiting organizations as a whole, particularly the less committed public service organizations. There are however, obstacles that must be faced. In the process of defining outcomes and unit contribution to that outcome, there are individuals and parts of the organization that are reluctant to share data due to fear of inaccuracy or more often, unfavorable interpretation. The second challenge is caused by the tendency of people that have invested in their data collection to be unwilling to share the information due to the loss of credit in the work involved. The third challenge is cost oriented. Some data required to achieve accurate measurement are more expensive than others. The fourth challenge is simply caused by the fear of being judged for something that we cannot control. In many sectors, like the environmental and health sectors, there are often uncontrollable variables that considerably affect the achievements of organizational goals. Including these factors in the evaluation system will be inaccurate and furthermore, most likely become the source of discontent ness among employees.   II.4.  Ã‚  Ã‚  Ã‚   Identification of the Trend   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Organizations and institutions that use OBM concepts generally have specific characteristics within them. The implementation of OBM is similar in various sectors despite the different services offered by the sectors. The implementation can be detected in the form of steps performed to identify goals and linking them to services performed. The amount of resources and time dedicated to each step might differ from one industry to the others depending on the difficulty of performing each step, but the steps that are performed are generally within the same order. For example, in the environmental public services, the amount of resources committed to define the desirable outcome is quite enormous and significantly larger than other sectors; This is due to the difficult nature of defining the suitable environmental targets to be achieved from environmental projects. In health care sector and child care sector on the other hand, identifying what services to perform in order to achieve identified goals are the most difficult step and the one requires most observations. These sectors however, are all performing similar elements of the OBM approach. Implications for the Public Service III.1.  Ã‚   Unique Sector   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Public service is generally known as governmentally-run organizations which all resources are generated from the government and thus, from the public themselves. If we are to study the development of this sector however, it is necessary to reveal how the public service sector is rationally different from the private sector. The most basic difference is the fact that in the private sector, most activities started at the supply side. Technology, for instance, is known as a tremendous catalyst from the supply side of business in the private sector that generates dramatic changes in various industries.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the public service sector on the other hand, the main intervention that leads to change originated from the demand side. Ironically, there are generally little chances to charge the public directly for the services they receive. Governmental taxes are the media that connects the payment between the public and the public sector workers. In addition of becoming a tool of delivering what the public needs, the public sector is also the tool to create a balance in the private sectors’ operations. In the transport and utilities sector for example, where networks grows and the element for natural monopoly is strong, public involvement is required to prevent market failures and the abuse of market positions (Franà §ois, 2003).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the light of this unique structure, we can logically guest that the problem with public service sector is actually the presence of the government as an intermediary party itself. In the private sector, people are working for their customers and they gain payments from them as well. This trade between service and payments happens dynamically and each side can influence the trade. In other words, it is easier for the private sector workers to influence the amount of payment they will receive. In the public sector on the other hand, people are working for the government.   Workers are not in direct trade of service and payments as the private sector. It is harder for them to influence the amount of payment they will receive (Glaeser, 2003).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In discussions of why productivity and efficiency in the public sector is often considered worse than the private sectors, many factors are mentioned, but the condition revealed above is one of the reasons often mentioned. The private sector workers are generally more motivated because in their frame of mind they have a way of influencing their own destiny. The public sector workers on the other hand, are working for different people than the one signing their checks. Knowing that the quality of their work will not influence their salaries, public sector workers are subject to a declining working motivation (Disney, 1998).   III.2.  Ã‚   Challenges   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In addition to the general problem mentioned above, there are also other issues that are parts of the new development of the public service sector in United States. Political leaders indicated the need to recruit the next generation of public sector workers. It is believed that the public service sector environment today has already evolved into phases that are out of the older-generation’s league. The new system of management requires new workers with the ability to learn and adapt to the evolved conditions of the public service sector. Others however, believed that such a change will not be beneficial due to the similar image of the job. Workers at the public service sector are still viewed as a ‘public servant’, a phrase which are highly unpopular in American society. Despite the enhanced system of management, if the government is unable to maintain change this image, the new workers are still going to be the ‘new generation of public servants’, in the sense that they have minimum bargaining power over the services they provide and salaries they receive. Another issue in the public service sector, particularly in the United States is the ageing structure of the public service workers. Statistics indicated that with the reluctance of young people in entering the sector leave only old people within the sector. This will obviously mean a degradation of management quality within the public service sector. Another study indicated that information deficiency is significant problem in managing public services. The information regarding desired outcome are generally owned by the lowest people in the managerial chain, while the strategic decisions are made by the government which has little access to the information (‘Challenges’, 2008). III.3.  Ã‚   Implications of the OBM Approach III.3.1. New Systems   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The application of the OBM approach to the public service sector might address several of the problems mentioned earlier. For example, the lack of motivation could be solved by better focus on actual results and linking organizational objectives directly to services performed. Successful application however, requires adaptation to the steps and elements of the OBM approach.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the public service organization, the desired outcomes can be those specified in the annual budget statements or those identified in legislation and specified by the related authority. For example, the general outcome of a public sector could be: accessible, reliable and safe public transport system, or a fair and independent criminal prosecution service. In the public service organizations, these general outcomes can then be translated into the agency-level outcomes. Furthermore, the use of outcome information in the public service organizations, can internally improve the budget setting process, while externally it can improve agency control, make it easier for other agencies to make contributions to the organization (Hundley, 1991).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the next step, OBM leads the public sector organization to specify agency-level services that are required to achieve the agency-level outcomes. This is generally performed by the making of a service checklist. The service checklist consist of questions like what service are delivered, what outcome are the services addressing, what results are the service addressing. Afterwards, the OBM approach takes the public service organization to developing performance indicators.   For the public service organizations, cost efficiency indicators could be: cost per student graduated, cost per license issued, etc; productivity indicators include: students taught per teacher, cases resolved per officer, etc. Overall, the benefits brought by the new approach include: Greater public transparency Enhanced knowledge in identifying best practices Increased ability in assessing performance against target Increased ability in investigating reasons of failure in meeting specified targets (Hatry, 2003) III.3.2. New Skills Required   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In light of the elements and process demanded by the OBM approach, the new skills required are: Sensitivity to new Information   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   To better perform the first step of the OBM approach, which is defining goals and outcomes, members of the public service organization need to be sensitive of the demands exist in the surrounding environment. This is related to the fact that public sector organizations exist to serve the public rather than to achieve organizational profit. Communicating information The people that are exposed to new information generally come from the lowest structure of the organization. Thus, the organization must design a system and furthermore, the skills to communicate information up to the highest level of management. Linking service activities to established goals Under the OBM approach workers at the public service organization are demanded to constantly see the linkage between the goals, outcome defined agency-level outcome and finally the service performed. This will provide them with clear logical frame of thinking, especially in decision making activities. Reference: ‘Challenges and Trends in Public Administration’. 2008. Retrieved January 2008 from   unpan1.un.org/intradoc/groups/ public/documents/ASPA/UNPAN006965.pdf Disney, R., and Gosling, A. 1998, ‘Does it Pay to Work in the Public Sector?’, Fiscal Studies, 19(4), 347–74. Franà §ois, P. 2003, ‘Not-for-Profit Provision of Public Services’, The Economic Journal, 113(486), C53–61. Glaeser, E. L. 2003. ‘The Governance of Not-for-profit Organizations’. Chicago, IL, University of ChicagoPress. Hatry, H. P., Morley, E., Rossman, S. B. Wholey, J. S. 2003. ‘How Federal Programs Use Outcome Information: Opportunities for Federal Managers’. National Academy of Public Administration Hundley, G. 1991. ‘Public and Private-sector Occupational Pay Structures’, Industrial Relations, 30(3), 417–34.

Supply Chain Management: Boeing And Airbus

Supply Chain Management: Boeing And Airbus I would like to mention a subject relating to aviation industry, especially in leasing aircraft sector. The most important task in this sector is how to order, purchase and lease back aircraft to airlines. But to implement this task, we should know in detail how the aircraft assembly process under the control of aircraft manufacture is. In Vietnam, the aviation market has a great development with the air traffic increasing year by year. In order to meet the high demand, Vietnamese airliners have to add more aircraft to their fleet. They not only purchase aircraft by itself, but also need to lease from aircraft lessors. So that, aircraft lessors have to support airlines to develop their fleet. Beside, leasing aircraft sector is the new one in Vietnam aviation industry. With this purpose, this final paper will provide an overview of the supply chain management practices by Airbus and Boeing in their new products as Airbus A350 XWB (Extra Wide Body) and Boeing B787 Dreamliners and how the both aircraft manufactures apply lean process management. Understanding this process, aircraft lessors will make a suitable decision to purchase aircrafts. On this occasion, I would like to thanks my partners in Boeing Commercial Airplane and Airbus SAS for providing necessary internal documents for reference. I also thanks my colleague in aircraft technical section in my company, Vietnam Aircraft Leasing Company, and technical staff from Vietnam Airlines Corporation for supporting during the data collection. 2. Research Goals and Approach: 2.1 Goals: In this final paper, I would like to provide the some overview for understanding the emerging of supply chain management strategies in the commercial aviation industry. It also shows the longer-term implications of the supply chain management in the aviation industry in the future. 2.2 Approach: To implement a comparative analysis of supply chain management applied by Boeing and Airbus and their lean process management. To focus on two new large development programs in commercial aviation (Boeing 787 Dreamliners and Airbus A350 XWB). To concentrate on the common set of suppliers supporting both programs to develop a sharp compare and contrast perspective, looking at Boeing Airbus from the vantage point of these common suppliers. 3. Literature review: The extensive literature showing that lean supply chain management practices represent a critical source of sustained competitive advantage and containing some factors as following: à ¢Ã¢â€š ¬Ã‚ ¢ Supplier network architecture linked to companys vision strategy. à ¢Ã¢â€š ¬Ã‚ ¢ Early supplier integration into design and development. à ¢Ã¢â€š ¬Ã‚ ¢ Visibility and transparency through open communications. à ¢Ã¢â€š ¬Ã‚ ¢ Long-term, trust-based, mutually-beneficial relationships. à ¢Ã¢â€š ¬Ã‚ ¢ Continuous supplier development process improvement. à ¢Ã¢â€š ¬Ã‚ ¢ New supplier network architectures represent a defining feature of emerging new business models for managing complexity, uncertainty and competition in a globalized market environment. à ¢Ã¢â€š ¬Ã‚ ¢ Access to investment capital, new markets and new sources of innovation. à ¢Ã¢â€š ¬Ã‚ ¢ Greater outsourcing, strategic alliances partnerships, delegation of greater responsibilities to suppliers to minimize risk and transaction costs. à ¢Ã¢â€š ¬Ã‚ ¢ Internet-enabled information technologies and systems radically redefining supplier integration via improved information visibility and information-sharing efficiency gains. à ¢Ã¢â€š ¬Ã‚ ¢ Machine-to-machine data communication system integration globally. à ¢Ã¢â€š ¬Ã‚ ¢ Unprecedented visibility, transparency and accuracy. à ¢Ã¢â€š ¬Ã‚ ¢ Greater flexibility in interconnecting different systems, facilitating both bilateral and multilateral collaboration. 4. Research Design: à ¢Ã¢â€š ¬Ã‚ ¢ To develop baseline data about the individual supplier companies. à ¢Ã¢â€š ¬Ã‚ ¢ To gauge whether and the extent to which they are employing lean practices. à ¢Ã¢â€š ¬Ã‚ ¢ To assess the extent to which the two large customer companies are practicing lean principles in their engagement with the suppliers. à ¢Ã¢â€š ¬Ã‚ ¢ To document the extent to which the two large customer companies have proactively required the suppliers to adopt lean practices. à ¢Ã¢â€š ¬Ã‚ ¢ To develop more deeply into specific topical areas (e.g., role in design development, information/communication links, contract design). à ¢Ã¢â€š ¬Ã‚ ¢ To probe how exactly the two customer companies manage their relationships with these specific suppliers. à ¢Ã¢â€š ¬Ã‚ ¢ Open source information to ensure external validity generalizability. à ¢Ã¢â€š ¬Ã‚ ¢ About the two companies their supply chain management practices. à ¢Ã¢â€š ¬Ã‚ ¢ About the two specific programs. à ¢Ã¢â€š ¬Ã‚ ¢ About the common suppliers. 5. Boeing 787 Program: 5.1 Overview: à ¢Ã¢â€š ¬Ã‚ ¢ Launch Year in 2002 in order to responding to the overwhelming preference of airlines around the world, Boeing Commercial Airplanes new airplane is the Boeing 787 Dreamliner, a super-efficient airplane. An international team of top aerospace companies is developing the airplane, led by Boeing at its Everett, Washington facility near Seattle. à ¢Ã¢â€š ¬Ã‚ ¢ Represents Boeings response to expected demand for an aircraft that would cost less to own, operate and maintain. à ¢Ã¢â€š ¬Ã‚ ¢ Targeted at the middle of the market segment the rapid, direct, point-to-point connections aviation market segment, with capacity of 250 passengers. Unparalleled Performance At the first stage of the program, Boeing tent to launch 03 type of aircraft: 787-3, 787-8, 787-9 but up to now, there are 02 main versions. The 787-8 Dreamliner will carry 210 250 passengers on routes of 7,650 to 8,200 nautical miles (14,200 to 15,200 kilometers), while the 787-9 Dreamliner will carry 250 290 passengers on routes of 8,000 to 8,500 nautical miles (14,800 to 15,750 kilometers). In addition to bringing big-jet ranges to mid-size airplanes, the 787 will provide airlines with unmatched fuel efficiency, resulting in exceptional environmental performance. The airplane will use 20 percent less fuel for comparable missions than todays similarly sized airplane. It will also travel at speeds similar to todays fastest wide bodies, Mach 0.85. Airlines will enjoy more cargo revenue capacity. Passengers will also see improvements with the new airplane, from an interior environment with higher humidity to increased comfort and convenience. Advanced Technology The key to this exceptional performance is a suite of new technologies being developed by Boeing and its international technology development team. 50 percent of the primary structure including the fuselage and wing on the 787 will be made of composite materials. An open architecture will be at the heart of the 787s systems, which will be more simplified than todays airplanes and offer increased functionality. For example, the team is looking at incorporating health-monitoring systems that will allow the airplane to self-monitor and report maintenance requirements to ground-based computer systems. General Electric and Rolls-Royce are the two engine manufacture to develop engines for the new airplane. It is expected that advances in engine technology will contribute as much as 8 percent of the increased efficiency of the new airplane, representing a nearly two-generation jump in technology for the middle of the market. Another improvement in efficiency will come in the way the airplane is designed and built. New technologies and processes are in development to help Boeing and its supplier partners achieve unprecedented levels of performance at every phase of the program. For example, by manufacturing a one-piece fuselage section, we are eliminating 1,500 aluminum sheets and 40,000 50,000 fasteners. Continuing Progress The Boeing board of directors granted authority to offer the airplane for sale in late 2003. Program launch occurred in April 2004 with a record order from All-Nippon Airways. Since that time, 56 customers from six continents of the world have placed orders for 847 airplanes valued at $147 billion, making this the most successful launch of a new commercial airplane in Boeings history. The 787 program opened its final assembly plant in Everett in May 2007. First flight of the 787 Dreamliner occurred in Dec. 2009. The program has signed on more than 40 of the worlds most capable top-tier supplier partners and together finalized the airplanes configuration in September 2005. Boeing has been working with its top tier suppliers since the early detailed design phase of the program and all are connected virtually at 135 sites around the world. Eleven partners from around the world completed facility construction for a total of three million additional square feet to create their major structures and bring the next new airplane to market. 5.2. Specification Model B787-8 B787-9 Engine GEnext or Rolls Royce Trent 1000 GEnext or Rolls Royce Trent 1000 Range 7,650 to 8,200 nautical miles (14,200 to 15,200 kilometers) 8,000 to 8,500 nautical miles (14,800 to 15,750 kilometers) Seat 210 to 250 passengers 250 to 290 passengers Configuration Twin aisle Twin aisle Cross Section 226 inches (574 centimeters) 226 inches (574 centimeters) Wing Span 197 feet (60 meters) 197 feet (60 meters) Length 186 feet (57 meters) 206 feet (63 meters) Height 56 feet (17 meters) 56 feet (17 meters) Cruise Speed Mach 0.85 Mach 0.85 Total Cargo Volume 4,400 cubic feet 5,400 cubic feet Max Takeoff Weight 502,500 lbs (227,930 kilograms) 545,000 lbs (247,208 kg) Program milestones: Authority to offer: late 2003 Program launch: April 2004 Assembly start: 2006 First roll-out ceremony: July 2007 First flight: December 2009 First delivery: Mid Q1/2011 (estimated) 5.3. Program Fact Sheet: The 787 Program covers many areas of interest, from the market, customers, and airplane technology to manufacturing enhancements and an extensive partner team, among others. Here are some interesting facts and figures on a number of these topic areas: Market size: 3,310 units over 20 years (Boeing Market Forecast 2009-2028) Firm orders by customer (up to October 2010 at www.boeing.com) Model Series Orders Deliveries Total B787-8 629 629 B787-9 218 218 B787 Total 847 847 B787 vs. B777 on composites and aluminum (by weight): B787 B777 50 % composites 12 % composites 20 % aluminum 50 % aluminum Material breakout on B787: Composites: 50% Aluminum: 20% Titanium: 15% Steel: 10% Other: 5% Better designe: More fuel efficient: 20 % more fuel efficient than similarly sized airplanes Produces fewer emissions: 20 % fewer than similarly sized airplanes Better cash seat mile costs than peer airplanes: 10 % Better maintenance costs: 30% Generators: Four at 250 kVA (two per engine) Two at 225 kVA (on auxiliary power unit) Hydraulic power: Distributed at: 5,000 pounds per square inch on the 787 3,000 pounds per square inch standard Advantage of the new electric architecture: Extracts as much as 35 percent less power from the engines than traditional pneumatic systems on todays airplanes. US and non-US content on the 787: Roughly 70 percent US Roughly 30 percent non-US. The number of new city pairs the 787 will connect: At least 450 Other special features: à ¢Ã¢â€š ¬Ã‚ ¢ Represents large step towards all-electric-airplane, one in which all systems are run by electricity. à ¢Ã¢â€š ¬Ã‚ ¢ Driven by the belief that power electronics, key to the all-electric airplane, are on a steep curve of performance cost improvement, while pneumatic systems growth has tapped out around 1995. à ¢Ã¢â€š ¬Ã‚ ¢ The traditional bleed air and hydraulic power are replaced with electrically powered compressors and pumps. à ¢Ã¢â€š ¬Ã‚ ¢ Cabin pressurized by electric motors, not by bleed air used by almost every pressurized aircraft. An open architecture centralized computer hosts the avionics and utility functions, rather than dozens of individual buses. à ¢Ã¢â€š ¬Ã‚ ¢ Anti-icing of the wing to be done with electric heat instead of bleed air. à ¢Ã¢â€š ¬Ã‚ ¢ Composites: resist long-term wear and tear, because cracks do not propagate from holes as in aluminum; inspections are made easier; maintenance intervals stretched to 1000 hrs (compared with 500 hrs for 767 or 700 hrs for A330 the two most prominent aircraft 787 aims to replace). à ¢Ã¢â€š ¬Ã‚ ¢ Much more savvy focus on flexible financing arrangements, plus closer attention to passenger comfort, fuel burn and life cycle costs. 6. Airbus A350 XWB Program: 6.1. Overview: Aimed at compete with B787 from Boeing, Airbus has decided to build A350 XWB based on the technologies developed for A380. The Airbus A350 XWB is a long-range, mid-size, wide-body family of airliners currently under development by European aircraft manufacturer Airbus. The A350 will be the first Airbus with both fuselage and wing structures made primarily of carbon fibre-reinforced polymer. The A350 is designed to compete with the Boeing 777 and the Boeing 787. Airbus claims that it will be more fuel-efficient, with up to 8% lower operating cost than the Boeing 787. It is scheduled to enter into airline service during the second half of 2013. The launch customer for the Airbus A350 is Qatar Airways. Development costs are projected to be US$15 billion. Airbus utilises next-generation manufacturing and assembly techniques to make the A350 XWB a more efficient and reliable aircraft. The A350 XWB is equipped with an advanced cockpit and onboard systems optimised for robustness and simplicity, while its advanced wing design makes this aircraft faster and quieter. The A350 XWBs onboard systems are designed for maximum reliability, operability and simplicity. The advanced wing design of the A350 XWB will make it a faster, quieter and more efficient aircraft. Airbus utilises new techniques to optimise the A350 XWBs weight, maintenance and operating costs. The A350 XWBs cockpit features the latest in display technology and integrated modular avionics. 6.2. Specification: Aircraft Dimensions Overall length 198 ft.7.5 in. 219 ft. 5.5 in. 242 ft. 4.7 in. Height 55 ft. 11.3 in. 55 ft. 11.3 in. 55 ft. 11.3 in. Fuselage diameter 19 ft. 58 in. (horiz) 19 ft. 58 in. (horiz) 19 ft. 6 in. (horiz) Wingspan (geometric) 212 ft. 5 in. 212 ft. 5 in. 212 ft. 5 in. Wing area (reference) 4,740 ft2 4,767 ft2 4,767 ft2 Wing sweep (25% chord) 31.9 degrees 31.9 degrees 31.9 degrees Wheelbase 81 ft. 7 in. 94 ft. 1 in. 108 ft. 7 in. Wheel track 34 ft. 9 in. 34 ft. 9 in. 35 ft. 2 in. Basic Operation Data Engines 2 Rolls-Royce Trent XWB 2 Rolls-Royce Trent XWB 2 Rolls-Royce Trent XWB Engine thrust range 75,000 lb. slst. 84,000 lb. slst. 93,000 lb. slst. Typical passenger seating 270 (3-class) 314 (3-class) 350 (3-class) Range (w/max. passengers) 8,300 nm. 8,100 nm. 8,000 nm. Max. operating Mach number (Mmo) 0.89 Mo. 0.89 Mo. 0.89 Mo. Design Weights Maximum ramp weight 548.7 lbs. x 1000 592.8 lbs. x 1000 659.0 lbs. x 1000 Maximum takeoff weight 546.7 lbs. x 1000 590.8 lbs. x 1000 657.0 lbs. x 1000 Maximum landing weight 407.9 lbs. x 1000 451.9 lbs. x 1000 503.8 lbs. x 1000 Maximum zero fuel weight 382.5 lbs. x 1000 423.3 lbs. x 1000 470.6 lbs. x 1000 Maximum fuel capacity 34,082 US gal. 36,460 US gal. 41,215 US gal. Some Design Technical Features: à ¢Ã¢â€š ¬Ã‚ ¢ Cockpit design follows same cockpit layout, characteristics and operating procedures as in the A320 and A330/A340 platforms, providing a number of advantages (e.g., in terms of crew training, crew transition, cross-crew qualification). à ¢Ã¢â€š ¬Ã‚ ¢ Also incorporates new features that benefit from innovation in technologies for displays, flight management navigation systems. à ¢Ã¢â€š ¬Ã‚ ¢ First commercial airplane to adopt EHAs (electrohydrostatic actuators) flight control technologies, a step forward to the all-electric airplane. EHAs are electrically powered but use hydraulic pumps and reservoirs that transform electrical power into hydraulic power. à ¢Ã¢â€š ¬Ã‚ ¢ Advantages: large savings in terms of weight and space (e.g., reduction in the size of pipelines, actuators and other components, power generation equipment, tubing, amount of fluid required), as well as ease of installation. à ¢Ã¢â€š ¬Ã‚ ¢ First commercial aircraft capable of flying with total hydraulic failure, using electricity to operate the flight control surfaces. à ¢Ã¢â€š ¬Ã‚ ¢ Extensive use of composite materials 25% (by weight), compared with 10% in A320 and 30% in A340-500/600. à ¢Ã¢â€š ¬Ã‚ ¢ Use of carbon composites and advanced metallic hybrid materials, along with laser beam welding to eliminate fasteners, reduce weight and provide enhanced fatigue tolerance. à ¢Ã¢â€š ¬Ã‚ ¢ Glare: highly resistant to fatigue, used in construction of panels for upper fuselage. à ¢Ã¢â€š ¬Ã‚ ¢ Aluminum and fiberglass layers of Glare do not allow propagation of cracks. à ¢Ã¢â€š ¬Ã‚ ¢ Glare lighter than conventional materials represents a weight saving of about 500kg. 6.3. Fact Sheet: Firm orders by customer: (up to October 2010 at www.airbus.com) Model Series Orders Deliveries Total A350-800 158 158 A350-900 340 340 A350-1000 75 75 A350 Total 573 573 A350 vs. B787 on material breakout (by weight) A350 B787 Composites: 53% Composites: 50% Aluminum: 19% Aluminum: 20% Titanium: 14% Titanium: 15% Steel: 6% Steel: 10% Other: 8% Other: 5% Airbus internal goal to freeze the design and expects: 10% lower airframe maintenance cost 14% lower empty seat weight than competing aircraft More fuel efficient: Up to 25 % more fuel efficient than similarly sized airplanes Produces fewer emissions: Up to 25% fewer than similarly sized airplanes Better cash seat mile costs than peer airplanes: 15% 7. Supply Chain Management Practices by Airbus and Boeing: à ¢Ã¢â€š ¬Ã‚ ¢ Supplier selection on both programs following a typical competitive bid process during initial plateau phase; selection on best-value basis. à ¢Ã¢â€š ¬Ã‚ ¢ Boeing retains unified list of pre-qualified suppliers/vendors (qualified parts list QPL; qualified vendor list QVL). à ¢Ã¢â€š ¬Ã‚ ¢ Airbus does not yet maintain such a unified list, but moving in same direction. à ¢Ã¢â€š ¬Ã‚ ¢ Both have major suppliers participate early in design and development process. à ¢Ã¢â€š ¬Ã‚ ¢ Both committed to long-term, mutually-beneficial, reliable and stable relationships with key suppliers. à ¢Ã¢â€š ¬Ã‚ ¢ Supplier partnerships typically limited to suppliers that continuously show excellence in performance, demonstrate credible long-term business interest, and back it up with their own development and investment. à ¢Ã¢â€š ¬Ã‚ ¢ Life-of-program fixed-cost contracts, but with some differences. à ¢Ã¢â€š ¬Ã‚ ¢ Electronic links with suppliers via supplier portals (request for quote/proposal; order placement; technical data interchange, such as technical specifications, key characteristics, engineering drawings; exchanging documents; facilitating virtual collaboration with global partnering suppliers in a 3D design software environment). à ¢Ã¢â€š ¬Ã‚ ¢ RFID (Radio Frequency Identification) initiatives: Both Boeing and Airbus have expanded the application of RFID tags for both the B787 and A350 programs; they have worked together to reach for consensus regarding standards for using global RFID technology on commercial airplanes). 8. Major suppliers responsibility is greater: à ¢Ã¢â€š ¬Ã‚ ¢ Important strategic shifts in supply chain management, driven by pressing need to reduce cost and spread development costs. à ¢Ã¢â€š ¬Ã‚ ¢ Both have asked major suppliers in B787 and A350 to absorb non-recurring costs, thus greatly shifting costs and risks to suppliers, but using somewhat different approaches. à ¢Ã¢â€š ¬Ã‚ ¢ Suppliers delegated much more responsibility for design, development and manufacturing through closer collaboration, partnerships and integration across supplier networks. Boeing 787: à ¢Ã¢â€š ¬Ã‚ ¢ Boeing has gone the extra distance with the 787 program retains only about 33%-35% of the total 787 work share à ¢Ã¢â€š ¬Ã‚ ¢ Deliberate effort to reduce parts count to enable snap three-day assembly of the 787 à ¢Ã¢â€š ¬Ã‚ ¢ Suppliers moving up the value chain assuming more of a system integrator role, providing more integrated components and managing their own sub-tier suppliers à ¢Ã¢â€š ¬Ã‚ ¢ This is the first time Boeing has outsourced the entire wing design and manufacturing to external suppliers (risk-sharing partners Fuji Heavy Industries, Ltd.: center wing box; Kawasaki Heavy Industries, Ltd.: main wing fixed trailing edge; Mitsubishi Heavy Industries, Ltd.: wing box) à ¢Ã¢â€š ¬Ã‚ ¢ This is the first time Boeing applied lean manufacturing process in B787 program to improve absence management while merging its short and long-term disability program administration with leave-of-absence offering. Airbus A350: à ¢Ã¢â€š ¬Ã‚ ¢ Airbus, as a multinational consortium prior to July 2001, had already adopted a strategic partnership model with well-defined work-share arrangements. à ¢Ã¢â€š ¬Ã‚ ¢ Airbus has increased its outsourcing in the A350 program, but has still kept in-house core technologies, such as composite technology and wing design. à ¢Ã¢â€š ¬Ã‚ ¢ Airbus also applied lean process technique by getting advice from Porsche (a German car manufacture) in order to reduce production time and avoid delay as happened in A380 program. 9. Worldwide Outsourcing: Both Airbus and Boeing have increased their global outsourcing in Japan, China, India, Middle East, Eastern Europe and Russia (estimated in the future). Why the two aircraft manufacture select these region because of the strong economic growth as well as fast-growing air travel particularly in Asia/Pacific region. Large Asian and Middle Eastern carriers as Singapore Airlines, Emirates, Vietnam Airlines now are the major customers. The variety of offset arrangements have opened up new market opportunities, tied to increased sourcing (e.g., from China). Boeing strategy: long unparalleled dominance in Japanese market strong presence in China. à ¢Ã¢â€š ¬Ã‚ ¢ In Japan: 80% of orders from Japanese airlines from Boeing during last decade; Japanese suppliers (heavies) account for 35% of 787 work-shares. à ¢Ã¢â€š ¬Ã‚ ¢ In China: activities range from subcontracting, joint ventures, technical training and assistance for cooperative programs; visible support from Chinese suppliers (valued at $1.6 billion), supplying essential composite parts and structures for 787 programs. Airbus strategy: relative newcomer to Japan China. à ¢Ã¢â€š ¬Ã‚ ¢ In Japan: facing difficulties in winning orders from Japanese airlines, but has contracted work with Japanese suppliers. à ¢Ã¢â€š ¬Ã‚ ¢ In China: sale activities in China jumped to 219 aircraft in 2005 from 56, overtaking Boeing by delivering 6 more aircraft; committed to doubling procurement from Chinese suppliers to $120 million/year by 2010; announced Tianjin will be site for Airbus first final assembly plant outside Europe. 10. The Emerging Unique Model: Boeing Model: The Boeing 787 experience represents a unique model for the future in supply chain management. à ¢Ã¢â€š ¬Ã‚ ¢ In essence, the Boeing model is about optimizing the total business, not just the supply chain in the traditional sense. Supply chain architecture as an integral part of the entire program extended enterprise architecture. à ¢Ã¢â€š ¬Ã‚ ¢ Main emphasis is on optimizing portfolio of core competencies in entire value stream for mutual benefit. à ¢Ã¢â€š ¬Ã‚ ¢ Lifecycle value creation perspective, not short-term waste elimination or cost minimization for Boeing itself. à ¢Ã¢â€š ¬Ã‚ ¢ Boeing has adopted a bold new innovative system integrator role. This represents a revolutionary departure from the past. à ¢Ã¢â€š ¬Ã‚ ¢ Boeing has asked all suppliers to carry all of the non-recurring costs; in return, gives back to risk-sharing partnering suppliers the intellectual property rights on the components or systems they provide. à ¢Ã¢â€š ¬Ã‚ ¢ Contracts are so designed that if the aircraft does well in the marketplace, the risk-sharing partners derive direct benefits and major partnering suppliers can make design trades within each work package and across company units to find optimal system solutions. à ¢Ã¢â€š ¬Ã‚ ¢ Lower-tier suppliers are not provided IP ownership but are given long-term relationships, where they can benefit from scale economies. à ¢Ã¢â€š ¬Ã‚ ¢ Boeing only provides high-level interface definition; the first-tier (major partnering suppliers) is responsible for the detailed interface definitions designs. à ¢Ã¢â€š ¬Ã‚ ¢ Suppliers work together and Boeing acts as referee in case of conflicts. à ¢Ã¢â€š ¬Ã‚ ¢ Web-enabled information technologies systems a critical enabler. Airbus model: à ¢Ã¢â€š ¬Ã‚ ¢ Airbus is reported to have established risk-sharing partnerships with more than 30 of its major suppliers covering $3.1 billion or 25% of total program non-recurring costs. à ¢Ã¢â€š ¬Ã‚ ¢ These suppliers include Alenia, Eurocopter, Fokker, Gamesa, Labinal, Saab). à ¢Ã¢â€š ¬Ã‚ ¢ However, this needs closer scrutiny, to see what it actually means. Airbus also continues to exercise control over all system and detail engineering interface definitions. à ¢Ã¢â€š ¬Ã‚ ¢ Airbus suppliers work in parallel (bilaterally with Airbus), with limited lateral communications among them. à ¢Ã¢â€š ¬Ã‚ ¢ Unlike Boeing, Airbus has no strong partners for major risk-sharing activities or as contributors to development spending. However, Airbus is currently pursuing new partnering arrangements under its Airbus Power competitiveness Industrial Plan. à ¢Ã¢â€š ¬Ã‚ ¢ Plan proposes radical cost-cutting rationalization measures (cutting 10,000 jobs, closing down or selling specific sites, rearranging workshare allocation). à ¢Ã¢â€š ¬Ã‚ ¢ Investment partners being sought for the Extended Enterprise sites (Nordenham, Germany; Meaulte, France; Filton, UK). à ¢Ã¢â€š ¬Ã‚ ¢ As part of the plan, supplier relationships would also change (Airbus wants partners to commit to long-term cost reductions). Airbus also reducing its supplier base from 3,000 down to 5,000. 11. Conclusion: Aerospace supply chain management will continue to evolve from a transactional or relational business model to one involving risk-sharing and cost-sharing prime-supplier partnerships, alliances closely-knit collaborative relationships. à ¢Ã¢â€š ¬Ã‚ ¢ Where primes (system-integrators) will likely to move closer to a total system integrator lifecycle value provider role. à ¢Ã¢â€š ¬Ã‚ ¢ Major suppliers to assume greater system-integrator role, with greater responsibility for design, development, manufacturing, and after-market lifecycle support. Suppliers, in general, moving from short-term service providers to long-term partners. à ¢Ã¢â€š ¬Ã‚ ¢ Global outsourcing considered as aerospace supply chains and is likely to be a lot more quite internationalized in the future. à ¢Ã¢â€š ¬Ã‚ ¢ Adoption of information technologies enabling network-wide connectivity right down to lower tiers an imperative in the future for coordinating complex set of interdependencies. à ¢Ã¢â€š ¬Ã‚ ¢ Continued consolidation likely in aerospace supplier base to build greater specialization broader system integration skills, and stronger financial backbone to make the necessary investments to enhance core capabilities.