Assignment of Business Management

Student ID

Department

University

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Question 1

Choose a U.S. company, and research its international presence. Explain reasons why this

company expanded into the global market.

I have selected Nestle’ which is US company. Its business expanded all over the world. Nestle is

one of the oldest multinational company providing biggest nutrition and food to almost more

than 80 countries. Nestle was concerned with a wide range of acquisition in last year. In order to

increase the expanded business in form of geographical scale it is important to develop market.

Nestle tries to take opportunities and going to generate the more profit for business (Anon,

2013). Nestle is going to invest in new market in different countries because, it has a potential to

be strong and develop an attractive market. Nestle develops confidence of doing well among

societies because country population based on technology and economical growth. Rapid change

in technology increase efficiency of an organization. Nestle identifies long term strategies that

quickly expand and get market opportunities which is possible to get market success. In order to

take advantages from market it is important to hire local managers and other staff to develop

understanding of market as well as also determine dynamic culture (Barney, J. 1991). Nestle

strategies and strategic management linked with each other because managers from respective

countries change culture due to dynamic change in market.

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Question 2

Why would a country eliminate trade restrictions and encourage free trade? Using the

European Union as an example, identify key changes that took place to encourage free

trade.

Free trade allows US companies to global market and innovation to increase special constancy.

Americans produce new technology and improve education to choose verity of trade strategies.

The economic growth based on benefits and peaceful society who develop new technology as

well as beneficial for economy. Americans experience for suffering new technology which create

challenge for production of different methods. American provides protection and creates

opportunities in faster growing economies. Economic growth is particularly important tool to

eliminate the budget deficit condition through investment in all over the world (Boyer, K. K.,

Swink, M.., Rosenzweig, E. D. 2005). European Union provides a free zone to member countries

which increase trade volume within members’ countries. There is no restriction of trade and

barriers addressed reduction in tariffs. It creates a market opportunity as well as provides

boundaries related to restriction and increase standards within a European zone. The European

commission generates competitive bilateral free trade agreement with members which increase

economic stability as well as considering building a multilateral discussion beyond the marker to

achieve the WTO (Cohen, W. and Levinthal, D. 1990).

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Question 3

What are barriers that businesses need to overcome in foreign countries? What are

alternatives that businesses can utilize to prevail over these barriers?

Business is a large size which compete global market in order to get reality and take

opportunities which an organization seeks to overseas market essential for long time period.

Success of business based on opportunities and companies often find method to increase sale for

future growth. At the beginning of new market it is important to control the market situation

because it provides basics barriers for business. Two common business barriers that foreign

countries faces while trading with each other are negotiation about environment as well as

cultural issues (Dornier, P et all, 1998). It involves in cultural shocks and increase national

spending through month of new area with business personals. Business barriers sometimes

encourage foreign trade as nestle knows ideology of country in which they are working and

trading. It is not a single conduct to trap the understandings and business silent partners to

increase relationship with stakeholders. The Nestle is a leading company in market need to

reduce barriers in trade and produce specific and general solution for issues related to

opportunities. One of the largest businesses is based on foreign currencies and business intended

to increase profit margin in order to increase crucial understanding about foreign exchange

factors (Ferdows, K. and de Meyer, A. 1990).

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Question 4

What are ethical considerations a business would need to evaluate before making a profit

in a foreign country?

Ethical issues recognize judgment and behavior that affect contextual factors. The business code

of ethics consist on organizational factors that affect ethical decision based on group of people

policies, procedures and codes of conducts that affect overall business culture. Codes of conduct

based on policies, procedures and specific mechanism which spell out moral expectation about

international organization. Ethical codes are based on norms, values and beliefs which generally

proposed senior executives in a firm which firmly affect market position (Hayes, R et all, 2005).

Codes of conduct are a formal statement related to policies, procedures and enforcement for a

specific mechanism. Organizational codes based on written ethics which stated in norms and

beliefs of an organization. The norms and beliefs generally produced the senior executive firms.

The process is used to determine the norms and beliefs throughout the firm within organization.

An example of code is “Employees that will not accepted for personal association which

monitors $25 in total form of business. Nestle has specific ethical issues based on ethical conduct

of business. An effective business develops culture of organization and display commitment for

different ideas with written codes and behaviors in a formal code effectively (Hayes, R.H. and

Wheelwright, S.C,1984).

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Question 5

What is management? Provide an example or scenario to describe how you, as a manager,

would use each function to reach your organization’s goals.

Management is a process of dealing with things or people, or to manage them effectively.

Management helps organization to carry out its current operations and help them to carry out

task or control task in future as well as to manage the current situation. The Manager needs to

carry out decisions that will have a positive impact on the organization. The manager has to carry

out various decisions very carefully, the decision may include hiring the appropriate person in

organization to maintain the public image of the organization (Hickey, Nader & Williams, 2011).

In order to reach the goal of the organization, I will first of all develop a clear vision for the

organization and communicate it to all individuals. Then I will ensure that the resources required

to complete the task are available to all employees in the organization. I will provide a reward

system in order to encourage and motivate employees to work efficiently. As monetary as well as

non- monetary rewards play a vital role in this regard. I will ensure a healthy and friendly

atmosphere in the organization in order to ensure an open communication process among

employees and managers. As the employees play a vital role in accomplishing the goal of an

organization (Johnson, G., Scholes, K. and Whittington, R. 2005).

Question 6

Imagine you are speaking to a group of employees. Which communication barriers do you

need to be concerned with and address in order to effectively communicate your message?

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Provide some examples.

I will start the speech with a story, a quotation, a joke or some question as it helps to make the

audience attentive and it helps to develop some interest in the topic. As this is an effective

method to maintain the attention of employees towards me. Sometime manager asks the

employees for the feedback or ask questions in order to know that whether his speech was

effective or not. According to a survey, the non-verbal communication is 55% effective, survey

words are 7% effective, and the voice is 38% effective. Therefore, in order to communicate

effectively the communicator must keep all these things in his mind so that he is able to make an

effective presentation that is understandable to his audience (Anderson, C. M., & Martin, M. M,

1995).

The difference in culture, barrier can occur due to wrong choice of medium, a physical

environmental barrier, semantic barriers, a psychological barrier, barrier due to various

perception are some of the barriers of effective communication. Normally I face the cultural

barrier due to diversity in the organization. know a days diversity is a common issue in most of

the organization as the globalization has reduced the barriers among different countries. It is not

an easy task to communicate effectively with employees that belongs to different backgrounds

and mindset (Blickle, G., Habasch, A., & Senft, W. 1998).

Question 7

The secret to being a successful manager is to use good communication skills that create a

positive image. What are three leadership styles? Give examples of each. Select a

leadership style you feel comfortable with as an employee and explain why.

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Managers that are so smart might be but if they are not good communicators, then they are not

able to manage the organizational activities effectively.In an organization the managers that are

good communicators and are able to express their feeling get rapid promotion then the other

mangers. Similarly, in an organization the employees that are good communicators and are able

to express their feeling get rapid promotion than the other employees (Salob.M & greenslade.S,

2005)

Leadership is an ability to inspire the other person in a way that he will follow the leader. There

are six main leadership styles, but here we will discuss three of them. Firstly the democratic

leadership style is an effective method as it involves employees in decision making by taking

their suggestions. I will use this method as employees stay motivated toward the goal of the

organization as they are involved in the decision making process.

The second is the coercive leadership style in which the leader does not take any suggestion, but

himself makes all decisions and communicate to employees. The third is the visionary leadership

style in which the employees are motivated by the leaders as leader provide them with feedback.

In order to improve their performance and leader adjust their employees in the vision of the

organization (Bernthal.P & wellins.R.S, 2004).

Question 8

What are the four categories of business planning? Explain each of them. How does the

level of management fit into the preferred process of planning?

A business plan used to take actions during the operations of business and performance

evaluation with promotion strategies. There are four categories of business planning in Nestle.
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Business overview

The plan used to develop a structure and introduce owners and members of management with

qualified compensation. The company develop mission and vision statement which joint together

and have target market to compete the products offered. The success of business based on

location, system, revenue and production capacity, human resource, risk management and

succession plan (Wernerfelt, B. 1984).

Market analysis

A business plan needs to complete the description and promote environment with regulatory

business strategies. The suppliers provide strength, weakness, opportunities and threats for

company to analyze market strategy.

Marketing

The information need to found the business plan which allows to develop indented services with

market sales promotion. It covers all activities which address to positioned the market program

and tie into market mix strategies (Clifford Jr., D. K, 1973).

Finance

Financial information related to business strategies based on plan budgeting and forecasting to

control accounting activities in business. the potential business elements plan together work and

required to complete the task successfully.

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Question 9

Identify and describe the five strategies that contribute to a successful small business? How

does each strategy provide for successful results?

In order to run a successful small business, there are various strategies that a manager can adopt

to make it business successful but here we will discuss five of them. Firstly, the owner should

make a clear vision and mission for his business as the vision and mission help employees to

concentrate on their target and provide them direction at each step. Secondly, planning of the

organizational activity, planning plays a very important role in making the business successful

(Clifford Jr, D. K. and Cavanagh, R.E, 1985). The involvement of employees in the planning

process plays a vital role, as they are motivated toward their responsibilities. Thirdly,

communication process that should be effective, so that the employees are clear about their job

expectation of managers and duties. There are different modes of communications like letters,

email, memos, telephone, etc. These are the modes of communications that known as channels of

communication. The communication channel should select with care as it affects the efficiency

of the message that needs to communicate. Fourthly, the culture of the organization that consists

of the norm, values of believes of the employees. The culture of organization is a unique

prospect of the organization. Therefore, the owner tries to maintain the culture of the

organization as it is the identity of the organization. Fifthly, project management process, in

which the owner manages the activities of the organization by prioritizing the different projects

(Duhaime, I. M).

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Question 10

What are the four types of corporations? What makes each corporation different? What

are advantages and disadvantages to the most common form of corporation?

There are four types of business corporations that are generally Corporation, C corporations, S

corporations & Limited liability companies. The general corporation based on legal separate

entity which is owned by shareholders. It is possible for stakeholders to define the personal

limited liability which unlimited all number of shareholders. C-corporation measures the

similarity with general legal organization which has specific amount of shareholders which is not

less than 30 and not more than 50 (Flamholtz, E. G., 1987). This has specific advantages and

disadvantages in which it provides fewer stakeholders with specific amount of opportunities to

raise capital. S-corporation has a separate tax requirement which is separated from general and

C-corporation. In S corporation the profit and loss of stakeholders which are reported on a single

tax return and mitigate double taxation system to find the general corporations. General

Corporation maximizes the number of shareholders and can issue stock at one in class. Limited

Liability Corporation have similar corporation as others however, it is generally less stakeholders

than other organizational structures (Gabarro, J. J, 1987). The main advantages of General

Corporation are to protect the personal liability and limited the time spam for transferring

ownership. The disadvantages are to include the tax and regulate the legal requirement of

business. Pay double taxes.

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Question 11

Many people would like to have their own business. If you were to start your own small

business, why would you take on this venture?

Normally people want to have their own business as they do not want to work under any boss.

First of the economic view of the industry is carried out in which you tried to enter in order to

know the profit margin and the ease of entry in the industry. The owner of the small business is

the sole owner of the business so the efforts he made will give him the result. As he is the sole

owner of the profit, earn from the organization that is the main reason that attracts me to start my

own business. According to a survey, 63% of the young people are interested in starting their

own business (Gilmour, S., 1981).

This kind of business is becoming so famous as it has normal startup cost, it is relatively simple,

and easily manageable. Although it also increases the responsibility of the loss as the owner has

to bear the whole loss. In order to deal with the loss, some money is kept in reserve in order to

deal with the losses. The business owner might have no separate entity, but he is responsible for

all the debts of his business. That is the main reasons that I will start a new small business

(Govindarajan, V. J., 1989).

Question 12

What are the four types of business ownership? Describe each of them.

There are different types of business ownership I have discussed just four types here below. Sole

proprietorship is a business in which only single owner run business. Owner of sole

proprietorship held personally responsible to all liabilities and paid credit from pocket as well.
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Partnership is other type of business strategy in which an organization work with more than 5

and less than 10 members (owners). They all are personally liable to pay credit from business as

well as from personal property. Limited liability organization has not more than 50 owners but,

it’s a registered organization in which only business is personally held liable for promotion. The

main advantages of General Corporation are to protect the personal liability and limited the time

spam for transferring ownership (Griener, L. E, 1972). The disadvantages are to include the tax

and regulate the legal requirement of business. Pay double taxes. Corporation is also a type of

ownership in which no one is personally held liable for paying debts. Shareholders are owners of

business and manager manages business. Directors are working on bases of shareholders. In case

of corporation people pay double tax (Gupta, A and Govindarajan, V. J., 1987).

Question 13

What are the generally accepted accounting principles (GAAPs)? Why do we need

GAAPs? What is the purpose and goal for this practice? What is the challenge of using this

practice?

GAAPS is the generally accepted accounting principles is a guideline, standard or the principles

that help different companies manage their financial records. It is a method to simply write down

all the financial records of the organization and these standards are authoritative. GAAP involve

the balance sheet, help to recognize revenues, measurement of shares. As it provides the

complete information about the financial condition of any organization so the investor see the

financial statement of the organization before investing in the organization (White, R. E. 1986).

Organizations follows these standards in order to ensure the stakeholders that the financial

information about the organization available is quite reliable. In the USA, the exchange

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commission and the security commission ask companies to follow GAAP as a standard to

maintain their financial statements. An Organization that follows these standards increases their

credibility in front of their stakeholders. GAAP is mostly used by US companies, but the

companies face challenges as the GAAP provide with a guideline in order to maintain their

financial statement. As it is not a set of a fixed rule, but provide a list of objectives therefore it is

sometimes do not seem effective. The use of GAAP in small business is also a challenge now-a-

days. With the improvement in financial methods, improved method is available and companies

move toward them and it is the challenge for US companies to move toward the new method

(Simon, H.A. 1955).

Question 14

All financial statements are important. Which one out of the three do you feel is the most

beneficial? Defend your answer.

Main financial which are compulsory for all business organizations are income statement,

balance sheet and cash flow statement. These statements help to manage business successfully

and help in future. Financial statements usually present the financial health and give a specific

entity. It is also develop a critical business which comes from accurate financial statements.

Financial statements not only record the accounting activities as well as satisfying the purpose of

external reporting which satisfy individuals who want to work for business (Jaques, E., 1989).

Financial statements offer the essential business which eliminate the business financial activities

and provide special period of business used in term of month or quarter. The statement not only

used by companies but also develops flow of information related to business which provide flow

of business and external users also used for investment. Financial investors comprise the

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investors with specific statement of assess in order to take logical decisions. The groups of

people use financial statements and decide how capital working issues increase debt and provide

security to them. Government analyzes the accurate financial strength in case of tax paid (A. H.

Russell, 1970).

Question 15

Managers rely on financial ratio analysis when making decisions. What are the four key

ratios? What information does each provide?

Financial ratios are important tool to manage the finance. It helps in decision making process for

future. Four key ratios are

 Liquidity ratios

 Efficiency ratios

 Debt assessment ratios

 Interest coverage ratio

Liquidity ratio

It is used to calculate the available cash of an organization against its outstanding debt. This ratio

measures the ability of organization to pay debt in long run and indicate the low risk of default

by strong liquidity ratio (Bower, J. L. (1982).

Efficiency ratio

Efficiency ratio used to measure how well an organization increase and manage income and

expenses. It is accountable to monitor the receivables and payables of an organization.

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Debt assessment ratio

Liquidity ratio measure how much an organization has cash that are available in term of cash or

marketable securities. It is used against debt and this ratio used to measure the short term debt

paying ability. A high risk of business indicates that company has default risk in future (C.S.

Clark and S.E. Krentz,, 2004).

Interest coverage ratio

It is used to consider the interest coverage ratio and earning can make its fluctuate interest

expenses day by day and particularly indicate future protection of earning from interest.

Question 16

What are the three types of accountants and the service each type of accountant provides?

Who would be the user of each type?

There are three types of accountant that are as following management accountant, government

accountant and public accountant. The management accountant is the accountant that works in an

organization and maintain the financial statement of the organization. As the financial statement

of the organization help organization to present their financial condition. They maintain the

financial documents that include balance sheet of the organization and the tax forms. As the

potential investors require these documents in order to make their decision regarding investment

(D. Abell, 1970).

The public accountant provides their various services to different non-profit organizations,

corporations, individuals, in order to maintain their financial statements. They maintain the

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financial documents that include balance sheet of the organization and the tax forms.The third is

the government accountants that work in government agencies and maintain and record their

financial documents. They also government to audit the private organization and the individuals

as government taxation department and the regulations doubted their activities. These accountant

can be hired by the local, federal or state government in order to maintain their records. As the

primary responsibility of the accountant in the government sector is to maintain their financial

statements of the fund of public that is used by government (Foss, N. J. 2009).

Question 17

An investor has many choices that need to be made before investing his/her money. Identify

five strategies that need to be reviewed before an investor can reach his/her personal goals.

Discuss the advantages and disadvantage to each strategy.

There are following strategies as

1. Net present value

The difference between outflow of cash and inflow of cash flow is knows as present value. It is

discounted for investment and used to analyze the profitability of company as well as project

(Hoskisson, R., Hitt, M., Ireland, R., & Harrison, J, 2011). It is calculated as

Advantages

 It is a direct method to determine project

 It is used to measure the principal amount

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Disadvantage

 NPV used to measure the size of project

2. Internal rate of return

This is a discounting method which develop the cash flow of company at equal to price of

security. It’s used to considering the different factors for various performance appraisal methods.

Advantages

 It shows original amount of project

Disadvantages

 It’s a mutually exclusive project

 Can’t determine the negative or positive project values (Meyer, A. D. 1991).

3. Payback period

The length of time is required to determine the cost of project and invested in specific amount of

investment. Formula is as

Payback period = Cost of project / Annual Cash inflows

Advantages

 Determine the cost of project

Disadvantages

 It doesn’t determine the cash flow of project

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 4. Discounted payback period

The process of project used to determine the profitability and analyze the number of years within

specific company to get s specific breakeven point.

Advantages

 Measure the cash flow period of project

Disadvantages

It is measure the contribution of project for utilization of shareholder’s wealth

5. Accounting rate of return

The return used to give the expected return based on investment projects and profit also divided

into initial investments which allows protecting the investors as well (S. M. Baroum and J. H.

Patterson J. H, 1996).

Advantages

 Information based on requirement of business

 Method use for business

Disadvantages

 Don’t determine time value of money

Question 18

What are the two types of networks that are specific to the user? How are these types of

networking advantageous for both the business and the end user?

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There are two types of network that are LAN and WAN. LAN is the most used network as it

involves as it helps to connect the personal computers and workstation in a company and

factories. The LAN network has a limited access as it can run in a school or office or in a

specific building. Fiber optics, printer, computers can also be connected by using the LAN

network. The LAN can help an organization to centralize their data information center that can

access to all computers in the organization. LAN help the different computers attach to a server

to share the software that is present in the server. Different data larger might be, can be share

effectively, and is available to all users that are present in the building. These data sharing may

also involve the data present in the CD ROM can also be shared among different computers

within the range of LAN network (Day, G.S. 1994).

The other is the WAN network is not limited to a specific office, or building rather it has a

larger axcess. It can share things round the world, in order to connect parts of WAN external

links of communication like satellite, microwave, fiber optics or telecommunication can be used

(Day, G.S. 2006).

Question 19

What is “cloud computing,” and what are the benefits cloud computing offers to the source

and subscriber?

Cloud computing is a term used to involve the delivering services over the specific internet and

these services are also divided into basic categories these are LaaS, PaaS and SaaS. Cloud

computing is a model used to access the demand with reliable resources which quickly
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provisioned and released the consumer involvement in decision making process (Bonoma, T.V.

and Johnston, W.J. 1978). Customers only pay different resources and develop software which

abstraction may get advantages of cloud computing. Cloud computing is a process used to

metaphor the internet services as well as based on device used from internet services. Cloud

computing is a grid type of computer process in which cycle’s process used to develop a specific

network and solve problems which provide initiatives along with machines. It provides largest

web services with public cloud providers which proprietary network, which creates private

services as a result of a virtual information process (Dant, R.P. and Brown, J.R, 2008).

Question 20

Diversification is a means to reduce risk. What are two funds that will provide the investor

good diversification at a low cost?

In order to reduce the risk a management technique of diversification is used that involves a vast

variety of investments by making a portfolio. As various kinds of investments includes an

investment on average profit, a high return on investment and a lower risk investment. This helps

the individual by lowering the risk of heavy loss in their business as portfolio help organization

to maintain their loss. As it helps to neutralize the bad performance of some of the investor by

the performance of the best investors. An Investor can get the benefit of the portfolio only if his

securities are not correlated (Schendel, D. & Hofer, C. W. 1979).

There are two funds one are the mutual funds and the other is the hedge funds that enable

investor good diversification at lower cost. The mutual funds is a fund collected from different

investors for the purpose of investing in bonds, securities, money market instruments, stock, etc.

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the money managers normally manage the money in this fund. Whereas the hedge funds are

funds collected from different investors for the purpose of investing in securities and

instruments. It is managed by the professionals and it is different from the mutual funds as hedge

funds are mostly invested in liquid assets.

Question 21

What are the benefits for companies that use promotions? What are the tools used to

promote consumer products? Explain each promotional tool.

Sale promotion is an important tool in companies because marketing is an important

advertisement tool to increase sales as well as develop market value. Long term business

strategies develops perception of customers with a specific product which provide worth of

business and convey the values based on price reduction with specific quality (Alam, I.2002).

Marketing segmentation, technological development and information and communication

process has created different ways for promotion. Now a day business creates blogs, search

engines to develop an optimal campaign which helps to promote the special production strategies

(Abrahamsson, M. and Wandel, S. 1998). Traditional tool used for marketing promotion

products and services. Public relationship management is influencing the optimal relationship

and useful for brand value which generate the positive stories and external shareholders along

with customer loyalty programs. It helps to enhance the industry credibility wihin organization.

Promotional tools are

 Personal selling

 Advertisement through internet and media

 Promotional mix

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  Publicity through pamphlets

 Words of mouths

Question 22

What are the elements that influence consumers’ decision-making? Provide an example of

a product that influences senior men or women? Support your answer.

There are five steps that affect that affect the decision making process of the customer. Firstly

the need recognition, that is the difference between the present state and the ideal state of the

person. Marketing plays a vital role in recognizing a person the need for the product. The second

step is the gathering of the necessary information that involves getting the information regarding

the different packages, and bundles of the required product available in the market The third step

is the alternatives available in the market. The Consumer will specify the feature, he wants to

have on the product and also specify feature that he do not want in a product (Anderson, E. and

Jap, S.D. 2005).

Brands plays a vital role in this regard and customer will try to buy a product of a trusted and

reliable brand. Fourth step involves the final purchase of the desired product, it also involves two

things that are when to buy the product and from where it should bought. The fifth is the

evaluation of the purchase product that is the post purchase behavior of customers. As older

clients are free from their various responsibilities so they are involved in various adventoueous

activities. Therefore, most of the traveling agencies and the retail shop concentrate on old clients

(Anderson, J.C., Kumar, N. and Narus, J.A. 2007).

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Question 23

What are the four different categories of consumer products? How could you promote each

category and motivate consumer interests?

Customers products are based on individual consumption goods that individual purchase for

consumption. There are following categories of consumer products

Fast moving

Fast moving products are commonly used products which used on everyday bases. Products need

to develop large scale but, don’t need too much promotion. For example facial tissue, sandwich,

food items having different categories. These items are typically constituted the shopping with

general mechanism as retail store (Anderson, J.C., Thomson, J.B. and Wynstra, F. 2000).

Durable

Customer’s durable goods purchased from long term uses and dishwashers and oven microwaves

which fall under the durable categories. There are items that generally purchased in low volume

or sometimes one in a life. The cost normally based on fast moving objectives and quality prices

points which durable evidences and retail store increase performance. For example, refrigerator

Soft goods

Soft goods are like the durable goods which slightly anticipate the length uses. Customers are

durable are more solid that formally pillow the sheets and towels. These items purchased long

term benefits with effective stores and designate the soft goods (Andersson, D. and Pruth, M.

2006).

Services

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Services are provided to customers not in market but also in people for expertise. For example,

services include training and lawn care etc. these play key role in purchasing consistency

deliveries.

Question 24

How do distributors add value by utilizing different types of utility? What are the different

types of utility and the benefits they provide to the consumer?

There are four different types of utilities that are time, place, possession and forum. The time

utility ensures the availability of the product to the customer when they desire the product. The

demand of the customers may vary with the weather, vocations and their desires. The demand for

the soft drinks increases in the summer seasons. Secondly, the place utility as costumer purchase

the products from the stores that are convenient for them and are near. Therefore, the

organizations that need more interaction with customers like retail stores, hospitals etc are mostly

located at the commercial areas in order to attract more and more customers (Aspen Institute,

(2009).

The possession utility is the freedom the purchaser enjoy after buying a product and getting its

possession. The forum utility is the value that the customer get after looking at the finish

product, as it provide the customer with a valuable product.The desire of the customer plays a

vital role in this regard. It may involve the internal desire to use a product if you have already

used the product and you want to try it again. The other is the external source that is if any friend

or family member use it and consumer also want its purchase. Therefore the right decision of

increasing the production of a particular product at a specific time plays a vital role (Ballantyne,

D. and Varey, R.J. 2006).

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Question 25

One of the responsibilities of an operations manager is to improve processes used to

produce products. Identify some ways operations management utilizes technology to

improve processes. Provide examples to support your answer.

Operations management is a business function which is responsible for managing and

coordinating different resources needed to develop services and products. In every organization

business operation is an important factor in organization. It helps to make decisions within

organization and impact of major cost of production it’s delivered in revenue (Ballantyne, D.

Varey, R.J. 2008). It is manufacturing retail or services which IT, financing and logical

transactions in different sectors. The effective system determines the success and various

components which interact with customers. The main objective of successful management is to

determine the ability of different resources within disciplines and relevant principles with

specific background within organization. It manages different solutions with evaluation in term

of final assessment and actual consequences with effective organization (Blois, K. and Ramírez,

R. 2006).

Question 26

What is an event that forced American businesses to focus on quality? What are two

methods American businesses use to improve the quality of their products and services?

Describe the methods.

Malcom Baldrige national quality award is the award given annually by Jason. It is given to

private, public or non- profit organizations that have performed excellently by maintaining their

25
performance and the quality of their product or services national institute of standard and

technology manage this award.there are six eligible categories that are provided these rewards

and almost 18 awards are given annually (J. Velury, (1996).

The two methods used to improve the quality of the product are the six sigma methd and the

other is total quality management. The latest and most efficient method used by the organizations

know a days is the six sigma method that reduce the error up to 99.9999% and it helps to reduce

the cost of the products.the six sigma method is developed in 1986 by Motorola and know used

in various industries. It helps to improve the quality of the products or services and it also helps

to improve the profit of the organization.

the other is the TQM approach that helps to improve the performance of the organization and its

quality. It brings about continouus improvement in the organization that helps to meet the

expectations of the customers. As the demand of customers changes continuously so the

continued improvement help to attract more and more customers by improving quality

(Mintzberg, H. and Quinn, J.B, 1991).

Question 27

It is very important that companies hire the right people for jobs. What is the process for

hiring a person in order to fill a specific position? Explain the steps in the process.

In order to improve the performance of the organization, it is necessary that the company hire the

right person at the right place at the right time. If the person does not fit the The hiring process

consists of various steps, firstly the organization makes a free space or vacany in order to hire the

new individuals. Then the organization makes a job description in order to make a successful

26
hiring. It may also help to make the questions for interview. In this t5he duty and responsibilities

of the new employees are clearly identified. Then the position advertises in the various media

that can be newspaper, internet, etc.The purpose behind this to attract a pool of applicants so that

company is able to hire the best candidate .

Then the organization decides about the committee that will carry out the selection process and

conduct the interviews. The committee consist of diverse individuals in order to avoid any

nepotism or favor. Then the applicants and reviewed and are short listed for the interview. Then

the interview is conducted that can be individual or panel interviews. After the interviews the test

conducted that may include the medical test, IQ test etc. then the committee finalizes the

applicants that are most appropriate for the specific job (S. Karapetrovic, D. Rajamani and W.

Willborn, (1997).

Question 28

What are some human resource challenges? How would a good human resources

department meet these challenges?

Human resource faces different challenges within organization in 21st century. HR is a basic

element of an organization need training and retention within organization. Talent management

is used to determine HR process and hire employees within organization. Human resource

management is a process used to anticipate the retention of people with greater challenges.

Leadership is a pool indicates HR concern and challenges with growth expand, developing

leaders which are probable to develop HR structure of an organization (Philips.J.J, 2003).

Development of leadership based on retention of employees which indicates poor managers’

leadership as a reason for leaving jobs. Employees wants to activate the leadership roles within

27
decision making process and it is necessary for business promotion to manage employees and

retain potential employees within organization. Main components of leadership development is

 Diversity management

 Managing challenges

 Retain pool of talent within organization by providing incentives

 Motivate employees

 Trained employees

 Reduce conflict among employees within organizations

 Take proactive plans rather than action on change

 Resisters for change reduce potential, motivate towards change (Slack, N., Chambers, S.

and Johnston R. 2004)

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