Bdo Benchmarking Assignment Essay Example for Free

Bdo Benchmarking Assignment Essay When considered in general terms Turnbull described it as: â€Å"All influences affecting the institution processes, including those for appointing the controllers and/or regulators involved in organising the production and sale of good and services†¦.. it includes all types of firms whether or not they are incorporated under civil law. † (Turnbull, 2002:181) Factoring in all other definitions, in its simplest terms it can be defined as the â€Å"exercise of power over corporate entities† (Clarke, 2004). It is not the same as the management and the running of the company, it is concerned with how the Board of Directors, who are the governing body of a company, supervise management, because it is they who are responsible for holding the management of a company accountable and ensuring the company is being ran in a way which is favourable towards the shareholders and other stakeholders. It is the Directors’ responsibility to develop strategy and policies for the ompany and to determine the direction the management should take the business in and the Directors have overall responsibility for the performance of the company (Tricker, 2012). While the phrase ‘corporate governance’ wasn’t coined until the 1960’s and not commonly used until the 1980’s, it has really been in a gradual process of evolution since the 16th century and joint venture trading. One of the major developments in world economies which brought the need for corporate governance to the fore was the introduction of limited liability companies in the 19th century. What this meant was when companies were incorporated they became a separate legal entity, separate from their shareholders and with similar legal rights to buy, sell and transfer shares and assets, to employ people and to sue and be sued in the name of the company. This meant the liability for any company debts lay with the shareholders and not the management or the company. Add to this the fact that because of the introduction of the stock market, shares could be easily bought and sold, meaning the shareholders could be vast in numbers and have a large geographical spread. Due to the fact that all corporate entitites need to governed, the implications of this were that the management (executive control) and the shareholders (owners) were often separated (Tricker, 2012). Situations such as these, are where corporate governance is deemed to be most necessary because there is a root assumption, that members of management who do not own the company are likely to be more reckless with someone else’s money, i. e. the company’s, than they would be with their own money (Having Their Cake, 2013). This is known as the agency dilemma, which will be expanded upon later. Electing a Board of Directors who have the interest of the shareholders at the forefront of their mind, allows members to indirectly oversee the actions undertaken by the management, in order to ensure that as agents of the shareholders, the management is performing in line with the best interests of the corporation (Lashgari, 2004). 1. 2. Selection of a Case Company However, as Turnbull pointed out in ‘Corporate Governance: Its scope, concerns and theories’ (2002), having a restriction of only publicly traded corporations in studies of corporate governance, limits the validity of any onclusions drawn about the most efficient arrangements for corporate institutions with regards to good governance practices and the effect they have on a company’s performance. As Jensen said in 1993: â€Å"Privately held entities could provide the most form of enterprise. † (Jensen, 1993, cited in Turnbull, 2002). It was with this in mind that I chose BDO LLP UK (BDO), which is an incorporated partnership company in the UK, which is owned and ran by its members/partners. It is a company which offers financial accounting, audit, tax and business consultancy services (BDO LLP UK website, 2013). . 3. About the UK Financial Accounting and Audit Sector With the ever increasing focus on corporate governance for companies across the World, not just in the UK, audit firms such as BDO, KPMG and Deloitte are becoming more important because it is there job to ensure that companies are adhering to regulations laid out in the UK Corporate Governance Code (2010, revised in 2012). It should naturally follow that audit companies will have extremely good corporate governance practices put in place, however, this is not necessarily the case. Since 2000 there have been a number of high profile scandals within the International Corporate Financial Accounting industry, for example, Enron were found to be inflating revenues and hiding debts and there was also the Bernard Madoff â€Å"Ponzi Scheme†, where the real scandal was that the robbing of millions of pounds worth of people’s money, escaped the attention of auditors and regulators. ). Due to such scandals, many national regulators implemented new corporate governance requirements to improve standards (Mitchell Van der Zahn, 2009). In the UK new regulations with regards specifically to audit companies were also introduced, targeted directly at a certain group of companies. As of January 2010, 95% of the auditing work in the UK was being carried out by 8 firms, BDO being one of them. It was deemed that such companies had built upon their reputation to gain dominance in the UK market and the Financial Reporting Council (FRC) felt it was in the Public’s interest for these companies to be transparent and in order to maintain public trust be exemplars of best corporate governance practice. This led to the introduction of the Audit Firm Governance Code (2010) by the Institute of Chartered Accountants in England and Wales (ICAEW), which drew from aspects of the 2010 UK Code and established principles such as the appointment of independent non-executives within the governance structure of their company. While such rules did not apply outside of the targeted companies, it was the hope of the ICAEW that it would provide a benchmark of good governance for other companies to follow (ICAEW website, 2013). With such a bold statement being made about the importance of corporate governance in this field of work, it seemed to me to be an obvious choice to choose one of the 8 companies on the ICAEW’s list for my case-study. 1. 4. About BDO LLP UK As detailed earlier BDO LLP UK is an incorporated partnership company in the UK, which is owned and ran by its members/partners and it provides financial accounting, audit, tax and business consultancy services. It is the 6th largest accountancy firm in the UK and is a member of the BDO International Network, which itself is the 5th largest accounting organisation in the World. In an attempt to break into the top 4 big firms in the UK, BDO LLP UK completed a merger with PKF, a rival firm, in April 2013 (Keynote, 2013). After researching BDO LLP UK, it became very clear that corporate governance was of the upmost importance to the company. Not only did it have specific areas on its website dedicated to corporate governance and corporate social responsibility but it also had a number of relevant publications regarding corporate governance. One article for example, ‘Making Internal Audit Relevant’, discussed the high quality of corporate governance in the UK found by studies carried out by the FRC, it went on to say that this was underpinned by the UK Corporate Governance Code and that it was vital in maintaining the attractiveness of the UK market, to encourage new investment (BDO LLP UK website, 2013). My research also found that BDO had carried out a joint study with the Quoted Companies Alliance, which considered the introduction of a mandatory corporate governance code for small and mid-capital audit companies in the UK. Just as a point of fact, this was a proposition that 92% of such companies agreed with. One of the major indications that BDO think corporate governance is vital to the success of a company is that they produce an annual transparency report, which has an appendix of a statement of compliance with the Audit Firm Governance Code (2010). They have also went to great lengths to create a summary report in 2012 for businesses which they audit, detailing any changes to corporate governance regulations and focusing on leadership and effectiveness, reporting, risk, audit, remuneration and investor relations (Corporate Governance for TMT Businesses, 2012). It seems to be an interesting idea to look at a company who places so much emphasis on good corporate governance, not only for itself but also the companies it works for, to see if they do comply completely with the codes and if they are in fact â€Å"exemplars† of good practice. . Theories of Corporate Governance There are various theories and philosophies with regards to corporate governance, all of which, as a collective, have laid a foundation for the development of different corporate governance systems around the world (Lashgari, 2004). This paper will look at a number of these theories and how they relate to BDO, in order to gain a better understanding of th e governance standards at BDO. 2. 1. Agency Theory In the 1930’s, Berle and Means published ‘The Modern Corporation and Private Property’, it provided the first debate about the agency dilemma and set a basis for agency theory. They suggested that where ownership is separated from management or is widely dispersed, it becomes difficult for owners to have an effective check on the autonomy of corporate managers. The agency dilemma was further refined in the 1970’s, when theories were brought to the fore suggesting agents (managers) are likely to be self-interested and will serve their own interest before those of the principle (owners). Such theories also suggested that in order to counter this problem companies have to incur agency costs, for example, to create incentives to align the interest of the agent with the company and the cost of monitoring the conduct of agents. Many other theorists have a problem with agency theory because it does not even attempt to explore the possibility managers are not self-interested and opportunistic. However, they cannot deny that it has een very influential in developing market-based governance mechanisms and board-based governance mechanisms. Due to BDO being an incorporated partnership and their shares not being publicly traded, we will only look at the board-based mechanisms (Having Their Cake, 2013). Agency theory has caused internal reform of boards, there has been an increase in executive share options schemes, meaning that managers are being offered equity in the company they will manage, in order to â€Å"align their interest† (Having Their Cake, 2013). Agency theory has also led to the introduction of independent non-executive directors onto Boards of Directors, in order to ensure the actions of the management are being sufficiently monitored by the board themselves and role of boards have been greatly elaborated, they are becoming more involved with the setting of objectives of companies and monitoring of any actions taken by management and stricter provisions have been put in place to ensure the separation of the roles of chairmen and chief executive (Cadbury Committee, 1999). When applying agency theory to BDO, it is easy to see that there is a situation of agency and principle, with the fact that there are 193 partners in the firm and only 5 partners who are part of the Leadership Team (LT- management) which is responsible for the overall management of the company and is chaired by the Managing Partner. It is also noticeable from their 2012 ‘Transparency Report’ that all members of the LT have been partners in the company for a number of years, with currently the shortest term being 12 years. This could be considered good governance by BDO because in an effort to avoid the agency dilemma, they ensure their management team is made up of partners, whose interest is already aligned with the interests of the business. The transparency report also states that BDO have a Partner Council (equivalent to a Board of Directors) which is independent from the LT and responsible for the overall governance, in particular the oversight and accountability of the LT. They are also responsible for choosing members of the LT and for electing independent non-executive directors, for which there are 2 at BDO. These independent non-executive directors sit on the LT and report to the partner council of any issues of compliance with governance, policies and procedures, for which they are responsible for providing information on to the LT. The Partner Council is chaired by the Senior Partner who performs a client facing role and is responsible for managing all decisions. He also attends LT meetings in a non-executive capacity to facilitate his oversight role of the governance of the company (Transparency Report, 2012). As we can see the management team is subject to a lot of oversight and monitoring by the Partner Council and the roles of the Senior Partner and Managing Partner are completely separate, this is all a way of ensuring the company has a high standard of governance and to also ensure the management is acting in the best interest of the all the owners. BDO goes to a big effort in organising their governance structure in order to avoid the problems arising from the agency dilemma. 2. 2. Resource Dependence Theory This theory originated from studies performed by Pfeffer and Salancik (1978), they suggest that board members and non-executive directors can provide a firm with a vital set of resources. Non-executive directors are appointed with the expectation that they will support the organisation with its problems and to be a source of expertise which executives can draw upon for skills and advice and they can also be a source of contacts and information which they have gained through their past experience (Having Their Cake, 2013). At different stages in the life-cycle of companies, they have very different needs from their non-executive directors. To young entrepreneurial companies, non-executive directors can be a cheap source of legal, financial or operation management skills, while publicly listed companies are in need of network connections such directors can provide, for example, sources of finance. They can also provide the benefit of attaching a good reputation to their company. Mature businesses, with which we are most concerned because BDO falls into that category, can use non-executive directors for their relevant market or managerial experience and from the consumer confidence which can be gained from that person’s good reputation being affiliated to their company (Having Their Cake, 2013). Applying this theory to the independent non-executive directors of BDO, we can clearly see from the Transparency Report (2012) that both have experience of past non-executive director roles and both bring their own experience in a relevant field, Lesley MacDonagh with a high level of experience of law and business management which she gained from being a Managing Partner at Law firm Lovells and Lord David Currie having experience of business management from eing a Dean of Cass Business School and a past Chairman of OFCOM and he also has sound knowledge of the legal system from being a member of the House of Lords. This places them perfectly for their positions of overseeing the governance of and business management of BDO. 2. 3. Stewardship Theory This theory, which originated from the works of Donaldson (1990), suggests that directors can have motives which are ‘pro-organizational’ and counters the assumption by agency theorists that management aims are based in self-in terest and are not aligned with those of the shareholders. Donaldson even goes as far as to suggest that negative investor assumptions of the management will have the opposite effect to what was intended and can actually weaken the leadership of a company by weakening the management’s authority when splitting the decision making power between the board and the management. Donaldson also put forward the theory that inside managers and directors have possibly spent their lives working for the company they govern and because of this not only have a strong understanding of how the company is ran, therefore are able to make superior decisions, but also they will have naturally built a strong affiliation and personal investment in the success of the company. He also points out that decisions made by a board of outsiders could be of a lower quality because they would not be in a position to fully understand the company because they would not have access to the same informal knowledge sources and would lack any information which could inform them of the contextual nature of any business situations. All this in turn could lead to low firm performance (Nicholson and Kiel, 2007). As was stated earlier, BDO has a LT which is made up of partners who have been working for the company in a particular field and have been a partner for a number of years. The field they are responsible for as part of the LT is relevant to the field they have been previously working in, for example the Head of Audit and Tax, Paul Eagland has been a Tax Partner for 17 years. This ensures that any decisions that are being made are informed with the necessary knowledge to make the correct decision for the company. Also, as has been stated previously working for the company has long has built a strong affiliation to the company and its success. With regards to the non-executive director element of the board, it is made up of both independent members who come from outside the company (such as mentioned previously) and Directors such as the Senior Partner who has been with the company for a number of years, this allows for any gaps in the knowledge of the directors to be covered because there is an overlap between the meetings of the LT and the Partner Council when the Senior Partner sits in on LT meetings as an affiliated non-executive director. This ensures that the company is practicing good governance and that the board cannot be misled by the management as to how the company is being ran and if the interests of the other Partners are being looked after (Transparency Report, 2012). 2. 4. Stakeholder Theory Freeman (1980’s) put forward a whole new idea in terms of corporate governance theories, he argued that it should not simply be just the shareholders’ or partners’ interests which should be considered when making business decisions, he suggested that companies should be ran with the interests of all stakeholders in mind. Other stakeholders include employees, who have invested their time and skills in the company and have an invested interest in the company’s success, in order for them to ensure job security. This, Freeman classes as a direct interest in the success of the company, other direct stakeholders include customers and suppliers. What Freeman classed as having an indirect interest in the performance of the company includes the community as a whole and the environment (Having Their Cake, 2013). There is a major problem with this theory, which is that it is hard to operationalize because it is difficult to decide the weight that should be given to different stakeholders but accepting this difficulty, some theorists have suggested that while ultimately they are accountable to the shareholders, they must take into account the interests of other stakeholders when making decisions. This demand for ‘stakeholder value’ is legitimised through a number of examples, take globalisation; the spread of business and corporations across the world has led to environmental damage, an increase in corporate corruption and excessive executive pay has been, for example with RBS, to come hand-in-hand with company downsizing which has a direct impact on employees. In the name of good corporate governance, the increase in the value of stakeholder interests has led to an increase in business ethic codes and heightened corporate practice visibility and corporate reports of social responsibility and environmental matters (Having Their Cake, 2013). According to BDO’s website and their Transparency Report (2012), the company takes the interests of various stakeholders into account when making decisions about how the business is run, in a number of different ways, through policies and procedures: * Ethical Requirements The company has a Professional Services Manual and an Audit Manual, which contain rules relating to ethical conduct of employees, management and Partners. It is easily accessible on the company intranet and is supplemented with training and is designed to comply with International and UK Ethics Standards. The Partners and staff sign annual declarations as to their compliance to the code and the company has an Ethics Partner who is tasked with providing guidance as to correct ethics and also with maintaining compliance. * Client Relationships BDO has 5 core values which all partners and staff are committed to, they are; honesty and integrity, taking personal responsibility, mutual support and strong and personal client relationships. To aid in these values and to help deliver a quality service to clients, the company has robust client and engagement procedures. They carry out risk assessments on every potential client, before signing a contract and this helps to ensure that not only is the company secure but also that they provide the client with the sufficient standard and amount of staff they are in need of. The HR department also has clear policies and procedures when it comes to recruitment in training, to ensure the company has a sufficient number of staff who are competent and meet the required ethical standards, all in the name of providing a quality service to clients. * Employee Relationships BDO have an inclusive culture when it comes to recruitment and training and development, it provides every staff member with the same opportunities to progress regardless of differences. They have strong policies and procedures regarding regular reviews, which are performed bi-annually. They also seek to adopt the most relevant recruitment selection tools, in order to ensure the fit and quality of those joining the company. They also provide employees with ‘learning maps’ and ‘career and performance wheels’, which helps with career development and ensures promotions only occur when the staff member is ready. This all aids in the success of the company. * Corporate Social Responsibility BDO actively support and develop the local community, they have an established network of over 20 champions in the UK, tasked with â€Å"stimulating local ideas and initiatives† to help developing the community. They have a Community Volunteering Policy, allowing employees to take 6 days a year to volunteer, and they are not restricted to volunteer at certain organisations. It can be whatever is important to them. BDO ensure the negative impact their business has on the environment is minimised and have an Environmental Policy which can be accessed at the follow address: http://www. bdo. uk. com/about-us/corporate-social-responsibility/environment. Considering this, it could be said that with regards to ‘stakeholder value’ BDO practices good corporate governance. . BDO Governance in Practice 3. 1. Transparency Report Due to the EU’s 8th Directive on transparency reporting being adopted, in April 2008 the Professional Oversight Board published the Statutory Auditors (Transparency) Instrument (2008), requiring auditors of companies with a public interest to publish annual transparency reports. It also detailed requirements that such reports must meet, including systems of q uality control, independence practices and procedures and information about the company, i. e. he structure and the management. The BDO Transparency Report (2012) is available at: http://static. bdo. uk. com/assets/documents/2012/09/Transparency_Report_for_the_52_weeks_ended_29_June_2012. pdf . Transparency reports are used to demonstrate the quality of audit processes and practices of a company and are also used to encourage a high level of confidence and trust from stakeholders and the business community. BDO also provided a statement of compliance with the Audit Firm Governance Code (2010), which can be seen in Appendix A. The transparency includes details of the Governance Structure of the UK Firm, including the management and implementation of independent non-executive directors, the values of the company, the Internal Quality Control System, the Risk Management Control System and details the policies and procedures regarding independence, whistleblowing, professional development and partner remuneration. 3. 2. Statement of Compliance with the Audit Firm Governance Code One of the most important aspects of the Transparency Report is the Statement of Compliance with the Audit Firm Governance Code. Some of the key aspects of which include compliance with: * the owner accountability principle- the Partnership Council reviews decisions made by the Leadership Team, the management * the management principle- strategic and operational leadership is provided by the LT * the professionalism principle- the whole firm is committed to quality work and professional judgement and values. The firm’s management and the Head of Risk and Quality reinforce the appropriate ‘tone at the top’, instilling professional and ethical values in the firm. BDO employees are expected to comply with an internal code of conduct * the Involvement of independent non-executives principle- BDO appointed Independent Non-Executives in July 2008, comply with the same independence requirements as our partners and employees and they have sufficient experience and expertise to command the respect of the partners * the Compliance Principle- BDO have policies and procedures to ensure they comply with professional standards and applicable legal and regulatory requirements * the whistleblowing policy- all actions arising out of incidents of whistleblowing, are reported to the Head of Risk and Quality who will make an annual report the Internal Reporting Principle- LT, Partnership Council, Audit Committee and Risk Committee are supplied with information in a timely manner and in a form and of a quality which enables them to discharge their duties * the Financial Statements Principle- BDO publish annual audited financial statements in accordance with UK GAAP While BDO provide a very clear statement about how compliant they are with regards to the Audit Firm Governance Code, we must look at the FRC’s ‘BDO LLP- Audit Quality Inspection, 2013’ which considered the corporate governance compliance of BDO in order to get a true understanding of their standard of corporate governance compliance. 3. 3. FRC Annual Review of BDO The FRC found that in most areas there were appropriate policies and procedures in place for its size and client base and they found that all the statements that were made in the Transparency Report were consistent with their understanding of BDO’s policies and procedures of the firm. However, when the FRC reviewed the audits BDO carried out themselves on other companies, they found that a number of governance codes were not being adhered to: * Firstly, they were not always providing a high standard of quality auditing, failing to challenge explanations and inputs from managers, they did not always report the disclosure deficiencies which were identified to the Audit Committee and there was a lack of adequate communication with the Audit Committee with regards to inaccurate information, which led to safeguards that had been put in place not being properly assessed. Secondly, the FRC found that the audits were not always being reviewed thoroughly enough and audit quality issues and omissions in reports were not being identified. * Thirdly, BDO were found to not have complied fully with ethical standards in a number of different ways; * The business plan inferred that fees should be set lower if non-audit fees are likely to be earned, this goes against their own required ethical standards and their own * Performance evaluation criteria including the cross-selling of non-audit services * The list of entities which partners held shares and could generate a conflict of interests was not up to date. A more robust set of procedures was suggested to ensure that this list was kept up to date in future Lastly, the Internal Quality Review was not of a high enough standard, it did not provide a sufficient level of detail and clarity of explanations of significant findings. 4. Conclusion We can see that BDO go to great lengths to try and ensure that they are fully compliant with corporate governance codes and regulations, not only with their policies and procedures a nd the way the company is managed but also with governance structure of the company and the values and focus of the aims and objectives of the company. They also have a strong focus on transparency and ethics within in their business and this is linked to their value of providing great customer client relationships with professionalism, honesty and integrity. They also go to great lengths to aid the companies with which they work, in complying with corporate governance codes, again this is all in the name of developing excellent quality and trustworthy client relationships, in order to maintain and improve the success of their business. However, as we can see from the FRC review, there are gaps in their governance compliance, in particular with internal reporting and ethical standards, but it will have to be seen in the coming years of reviews if the increase in transparency and an even greater focus on corporate governance will lead to BDO closing such gaps. 5. Bibliography * BDO LLP UK, ‘Transparency Report’, 2012, Available Online at: http://static. do. uk. com/assets/documents/2012/09/Transparency_Report_for_the_52_weeks_ended_29_June_2012. pdf [Accessed 02 May 2013]. * BDO LLP UK Website, 2013, ‘About Us’, Available Online at: http://www. bdo. uk. com/about-us/corporate-social-responsibility/environment [Acc essed 02 May 2013]. * BDO LLP UK, 2012, ‘Corporate Governance for TMT Businesses’, Available Online at: http://static. bdo. uk. com/assets/documents/2012/03/Corporate_Governance_for_TMT_Businesses. pdf [Accessed 02 May 2013]. * Crump, R. , May 2012, ‘Mid-cap market calls for mandatory governance code’, Financial Director Website, Available Online at: http://www. financialdirector. co. k/financial-director/news/2180374/mid-cap-market-calls-mandatory-governance-code [Accessed 02 May 2013]. * Financial Reporting Council, 2013, ‘BDO LLP: Audit Quality Inspection’, FRC Website, Available Online at: http://www. frc. org. uk/Our-Work/Publications/Audit-Quality-Review/Public-Report-BDO-LLP. aspx [Accessed 02 May 2013]. * ICAEW, 2013, ‘The Audit Firm Governance Code’, ICAEW Website, Available Online at: http://www. icaew. com/en/technical/corporate-governance/audit-firm-governance-code [Accessed 02 May 2013]. * Keynote, 2013, ‘Account ancy Marketing Report’, Available Online at: https://www. keynote. co. uk/market-intelligence/view/product/10674/accountancy? edium=download [Accessed 02 May 2013]. * Dr Lashgari, M. , 2004, ‘Corporate Governance: Theory and Practice’, The Journal of American Academy of Business, Cambridge, Available Online at: http://tharcisio. com. br/arquivos/textos/13200724. pdf [Accessed 02 May 2013]. * Mitchell Van der Zahn, J-L. W. , 2008, ‘Special Issue on: Financial Reporting, Transparency and Corporate Governance: Issues in Volatile International Markets’, International Journal of Accounting, Auditing and Performance Evaluation, Vol. 7, Nos 1/2, pp: 61-93, Available Online at: http://www. inderscience. com/info/ingeneral/cfp. php? id=962 [Accessed 02 May 2013]. * Roberts, J. ‘The Theories behind Corporate Governance’, Having Their Cake website, Available Online at: http://www. havingtheircake. com/content/1_Ideas%20that%20shape%20the%20world/fa ct%20and%20opinion/The%20theories%20behind%20corporate%20governance. lnk [Accessed 02 May 2013]. * Turnbull, S. , 2002, ‘Corporate Governance: Its scope, concerns and theories’, Corporate Governance: An International Review, Volume 5, Issue 4, Available Online at: http://onlinelibrary. wiley. com/doi/10. 1111/1467-8683. 00061/pdf [Accessed 02 May 2013]. * Tricker, R. I. , 2012, ‘Corporate Governance: Principles, Policies and Practices’, Oxford University Press: London, (2012). *

Impact of Technology on Childhood

Impact of Technology on Childhood In this essay the various stages of technology impact on childhood will be discussed and how more and more children influenced and affected by media such as TVs, video games to the internet, and computers. Todays globe has been initiated by technology into the early childhood daily activities or education programs, thus you can find computers, internet, TVs and other technology components at any school ,household ,internet cafe or electronic play ground. Technology has the dark side effect on youth and children more than adults .For instance social behaviour disorder, child and youth obesity and health issues. However some parents believe that technologies are good for their children to learn faster and affect significantly on their education performance and it is essential in todays world. Consequently the negative sides of technology impact on childhood should be acknowledged and addressed regularly to the children through education providers programs and of course by contribution of the parents. To begin with that child obesity can be caused by over use of technology tools. Generally from beginning of childhood, most kids are able to get access to computer specially computer games at home. According to Donald (1999) 70% of households with children have TV based video games; however desktop based computers are not the only tools that children involved with. Laptop, I-Phone, PSP or handheld games are available to kids especially to middle school children. Technology use has modified noticeably in the past years, for instance any imaginable video games, online games where the children can interact with other kids and playing the same game at the same time consequently the hours per day that children are involved with technology are higher than the amount of time that they put in to completing their homework. Apparently youthful individuals are different significantly in their interest, some kids contributing in physical activities and sports, others playing video games are their main interest. Physical activity is required to the physical and mental healthiness of young people, and of course their self confident. Generally it has been shown in too many studies and researches that childhood are increasingly affected by their desire for peers acceptance which means children do most of their physical activity in groups rather than by their own. In fact spending time with groups which are supportive and active is one of the main inspirations to the kids to be active. Despite some people have their own point of views regarding reasons that affect younger generation physical activities, for instance some believe that genetics is the cause, some consider that its parents responsibility. In addition physical activity can be reduced after school hours as more kids interact and involve with video games, therefore they have less time for physical activity and sport. According to some researches that video games and PCs cause more deep focus and unhealthy postures in kids than doing homework or watching TV .In fact the risk of physical and visual disorders and obesity in those kids are greater than other kids who spent less time using technology. The other effect of the technology on childhood is the way how children response and react to other kids and their parents in the areas of understanding and good manners or valuing the respect of other individual. Generally these days mostly parents are busy with work and other life commitment during a week, so they have less time to spent time interact and communicating with their children fully, as result of that any kind of technology such as computer, internet and specially video games will replace guardians role because at least it would be safer for kids to stay inside house play video games rather to spent time outside and playing in neighbourhood with other kids. Furthermore, harmful social impact of technology, isolation that happened to some kids who grown these days and regularly using computer and video games is the other dark side of technology .In fact there is relation between regular computer use and poor social participation and sadness which can be warning bell to t he parents that any kind of technology may keeps their children away from them and reduce their parental interaction with them. Retail sales of video games came to $ 9.9 billion according to the annual U.S retail sales in 2004. In addition another surveys includes 70% of household with kids between 2 to 17 years old have access to internet and 68% have video games according to Woodrad Gridina (2000).Consequently when kids involve playing video games and especially violent one therefore politeness and empathy would replace by aggregation towards guardians, their parent or other kids at school thus they intent to upset or frighten others within school or community and often involves violent behaviour or aggressive actions. Admittedly we belong to an increasingly technology base community and children need to be informed, addressed and prepared so they can perform in a work environment and in a world where computers are basic tools of everyday life. Technology has positive impact on children development and educational performance such as communicational, ease of access of information and career benefits. For instance children do not just have to learn about other peoples backgrounds and values in a textbook, instead they can use the technology at hand, such as a computer and internet. This can help children to recognise the differences between cultures and resolve cultural conflict with others kids from different background that they may study together and work with later on; in addition technology improves the way children communicate with guardians and within community by technology tools such as instant messaging, chatting room and discussion board through internet. Furthermore, children who have access to technology specially computer with supporting activity more likely improve their imagination skills, structural knowledge and long-lasting memory, depends of what sort of information and computer exercise offered to the them and how often children able to work with computers in regular basis. Generally the main role of technology, especially computers at the primary level of childhood are significant as it can improve childrens mathematical abilities, creativity and critical thinking. Basically in todays world, technology and computer has significant impact and influences on people life, Consequently the kids who get appropriate and necessary training of the technology and computer will able to overcome difficult task that they have been given through school an continuously through their life to compare to the children who has less access to this resources or belonging to the lower level of society. Based on the information, it is clear that the high use of technology by children has a negative effect on their physical and mental well being. Child obesity in relation with technology is very high, and is an obvious cause of health problems in children. Also childrens social behaviour is negative impacted with high interaction of technology, they are encouraged to replicate violent behaviour and become self isolated. The negative impact of technology and computer use in early childhood development should be recognised by the education providers and parents so they can address them regularly to the early childhood programs to reduce issues which children can develop.

Factors of Soil Aggregation Essay -- Agriculture Agricultural essays

Factors of Soil Aggregation There are many features that characterize a soil. One such feature is aggregates. There are many different types of aggregates, such as platy, prismatic, granule, blocky, angular, and more. There are several different factors which influence the formation of these aggregates. Hans Jenny, in his book Factors of Soil Formation (1941), recognizes five factors which influence soil formation: climate, biota, topography, parent material, and time. This paper will explore each of these factors in order to gain a better understanding as to what influences aggregate formation and strength. Before exploring aggregate formation and strength, the word "aggregate" must be clearly defined. Singer and Munns (1996) define aggregate as a word synonymous to "ped" which refers to "a group of primary particles held together by various soil-stabilizing agents" (pg. 28) and "are described according to their shape, size, stability, and east with which we can see them in the soil" (pg. 28). There are six main types of aggregate shape: granular, subangular blocky, angular blocky, prismatic, columnar, and platy (Singer and Munns, 1996). Aggregates of different shapes form under different conditions, however, the basic elements that cause aggregate formation remain the same. Now that "aggregate" has been defined, the discussion of formational factors may begin. The formation of aggregates begins at the smallest level, with tiny particles of less than five micrometers called colloids (Singer and Munns, 1996). At this size, electrostatic bonding and hydrogen bonding hold particles together (Black, 1968). This causes several effects. First, the amount of clay present becomes important, since most electrostatic and inter... ...arides that are effective binding compounds. Fungal hyphae on cast surfaces can physically enmesh and stabilize casts, but stabilization is most strongly promoted by drying, which brings the organic and mineral compounds into close association, promoting clay-polyvalent cation-organic matter linkages" (pg. 1743). The factors which influence soil formation, and consequently aggregates, are complexly linked. Each factor interacts, influences, and in turn is dependent upon each other factor. Through this amazingly intricate relationship, several factors are recognized as more influential in aggregate formation. To fully list all possible elements which work to form a single aggregate would take many years, and many volumes of books to complete. This paper has hopefully provided insight into several of the most important factors that influence aggregate formation.

George Wallace :: essays papers

George Wallace Former Gov. George C. Wallace of Alabama, who built his political career on segregation and spent a tormented retirement arguing that he was not a racist in his heart, died Sunday night at Jackson Hospital in Montgomery. He was 79 and lived in Montgomery, Ala. Wallace died of respiratory and cardiac arrest at 9:49 p.m., said Dana Beyerly, a spokeswoman for Jackson Hospital in Montgomery. Wallace had been in declining health since being shot in his 1972 presidential campaign by a 21-year-old drifter named Arthur Bremer. Wallace, a Democrat who was a longtime champion of states' rights, dominated his own state for almost a generation. But his wish was to be remembered as a man who might have been president and whose campaigns for that office in 1968, 1972 and 1976 established political trends that have dominated American politics for the last quarter of the 20th century. He believed that his underdog campaigns made it possible for two other Southerners, Jimmy Carter and Bill Clinton, to be taken seriously as presidential candidates. He also argued ceaselessly that his theme of middle-class empowerment was borrowed by Richard Nixon in 1968 and then grabbed by another Californian, Ronald Reagan, as the spine of his triumphant populist conservatism. In interviews later in his life, Wallace was always less keen to talk about his other major role in Southern history. After being elected to his first term as governor in 1962, he became the foil for the huge protests that the Rev. Dr. Martin Luther King Jr. used to destroy segregation in public accommodations in 1963 and to secure voting rights for blacks in 1965. As a young man, Wallace came boiling out of the sun-stricken, Rebel-haunted reaches of southeast Alabama to win the governorship on his second try. He became the only Alabamian ever sworn in for four terms as governor, winning elections in 1962, 1970, 1974 and 1982. He retired at the end of his last term in January 1987. So great was his sway over Alabama that by the time he had been in office only two years, other candidates literally begged him for permission to put his slogan, "Stand Up for Alabama," on their billboards. Sens. John Sparkman and Lister Hill, New Deal veterans who were powers in Washington and the national Democratic Party, feared to contradict him in public when he vowed to plunge the state into unrelenting confrontation with the federal government over the integration of schools, buses, restrooms and public places in Alabama. It was a power built entirely on his promise to Alabama's white voting

Freedom of Speech and Expression and Responsibility -- Argumentative P

Freedom of Speech and Responsibility       No matter how fervently someone believes in the justice of his cause, suppression of the free exchange of ideas is failure at best or downright wrong. The power or might behind an idea does not make the idea right. Many powerful people throughout history have been wrong. Few people, if any, would judge "Mr. Smith Goes to Washington" to be subversive or wrong. In 1939 Ambassador Kennedy was so caught up in the fears of the times that he was willing to use the power of his money to protect the world against a film. When people are caught up in the movements of their time, all people must be extra zealous to guard and encourage freedom of expression. Otherwise, a mob mentality reigns, and people rush to do things that are not thought out and often regretted later.    The founders of our country knew from experience how important free expression of ideas is. Many of them, along with popular demand, insisted that the Constitution immediately be amended by the Bill of Rights. The first article of the Bill of Rights guarantees freedom of expression:    Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.    Without freedom of expression, no people are truly free. Sometimes a person will hide repression by telling people under his authority that they are free to believe anything they want--they just can't voice their beliefs. They are free to think anything, but aren't allowed to say what is on their minds.    What are some examples of this men... ...19. "House Passes Free Speech Exception."   7 Feb. 1998.   <http://www.scimitar.com/revolution/express/flag.html>   (17 March 1998). LaMarche Gara.   "Hate Speech Should Not Be Outlawed."   Civil Liberties: Opposing Viewpoints. Ed.   Charles P. Cozic.   San Diego:   Greenhaven Press, 1994.   90-95. Otto, Jean.   "Freedom of Expression Should Not Be Restricted."   Civil Liberties: Opposing Viewpoints. Ed.   Charles P. Cozic.   San Diego:   Greenhaven Press, 1994.   79-84. Rupke, Roxanne.   "Zeeland students to recommend T-shirt rules."   Herald Sentinel.   25 March 1998:   A1, A5. Showers, Robert H.   "Pornography Sould Be Prohibited."   Civil Liberties: Opposing Viewpoints. Ed.   Charles P. Cozic.   San Diego:   Greenhaven Press, 1994.   96-102. "T-shirt ban: Pepsi shirt gets him in trouble on Coke Day at Greenbrier High."   Herald Sentinel.   26 March 1998:   A1.

Marketing Strategy of Dabur Vatika Hair Oil

1. INTRODUCTION [pic] Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. For the past 125 years, we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. Through our comprehensive range of products, we touch the lives of all consumers, in all age groups, across all social boundaries.And this legacy has helped us develop a bond of trust with our consumers. That guarantees you the best in all products carrying the Dabur name. 1. 1 Dabur India Ltd. – Corporate Profile- Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of US$1 Billion (over Rs 5,000 Crore) & Market Capitalisation of US$4 Billion (Rs 20,000 Crore). Building on a legacy of quality and experience of over 127 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company.Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities — Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, real for fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods.The company has a wide distribution network, covering over 2. 8 million retail outlets with a high penetration in both urban and rural markets. Dabur's products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe . Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over 30% of the total turnover. The 125-year-old company, promoted by the Burman family, had started operations in 1884 as an Ayurvedic medicines company.From its humble beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-owned consumer goods companies with the largest herbal and natural product portfolio in the world. Overall, Dabur has successfully transformed itself from being a family-run business to become a professionally managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others and to always set new standards in corporate governance & innovation. 1. 2. Dabur At-a-Glance | |Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of | |success is based on ded ication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and | |stakeholders. The results of our policies and initiatives speak for themselves. |Leading consumer goods company in India with a turnover of   Rs. 5,283 Crore (FY12),2 major strategic business units (SBU) – Consumer | |Care Business and International Business Division (IBD),2 Subsidiary Group companies – Dabur International and NewU and several step | |down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care | |(Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. | |(USA). 7 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries. Wide and deep market | |penetration with  50 C agents, more than 5000 distributors and over | |1. 3 Million retail outlets all over India | |Consumer Care Business addresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal | |Care, Health Care, Home Care  . |1. 4 Master brands | |Dabur – Ayurvedic healthcare products | |Vatika – Premium hair care |Hajmola  Ã¢â‚¬â€œ Tasty digestives | |Real – Fruit juices & beverages | |Fem – Fairness bleaches & skin care products | |12 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Real, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola, | |Dabur Honey, Glucose, Fem and Odonil. Strategic positioning of Honey as food product, leading to market leadership (over 75%) in | |branded honey market. Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.Vatika has been the | |fastest growing hair care brand in the Middle East. Hajmola tablets in command with 60% market share of digestive tablets category. | |About 2. 5 crore Hajmola tablets are consumed in India every day. Leader in herbal digestives with 90% market share . Consumer Health | |Division (CHD) offers a range of  classical Ayurvedic medicines  and Ayurvedic OTC products that deliver the age-old benefits of | |Ayurveda in modern ready-to-use formats Has more than 300 products sold through prescriptions as well as over the counter.Division | |also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of | |students. | | | | | |International Business Division (IBD) caters to the health and personal care needs of customers across different international | |markets, spanning Nepal, Bangladesh, the Middle East, North & West Africa, EU and the US  with its brands Dabur & Vatika   | |1. Core Values | |Vision- â€Å"Dedicated to the health and well being of every household† | |Principles-Ownership-This is our company. We accept personal responsibility, and accountability to meet business needs. | |Passion for winning-We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to | |be the best at doing what matters most. |People Development-People are our most important asset. We add value through result driven training, and we encourage & reward | |excellence. | |Consumer Focus-We have superior understanding of consumer needs and develop products to fulfill them better. | |Team Work-We work together on the principle of mutual trust & transparency in a boundary-less organization. We are intellectually | |honest in advocating proposals, including recognizing risks. |Innovation-Continuous innovation in products & processes is the basis of our success. | |Integrity-We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners| |and with each other. | 1. 1. 6 Strategic Intent-We intend to significantly accelerate profitable growth. To do this, we will: †¢ Focus on growing o ur core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology. Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science. †¢ Provide our consumers with innovative products within easy reach. †¢ Build a platform to enable Dabur to become a global Ayurvedic leader. †¢ Be a professionally managed employer of choice, attracting, developing and retaining quality personnel. †¢ Be responsible citizens with a commitment to environmental protection. Provide superior returns, relative to our peer group, to our shareholders 7. Company History | | |[pic] | |   | |   | |   |    | |   | |   | |   | |   | |   | |   | |   | |   | | | |1884 | |   | |Birth of Dabur | | | |1896 | | | |Setting up a manufacturing plant | | | |Early 1900s | | | |Ayurvedic medicines | | | |1919 | | | |Establishment of research laboratories | | | |1920 | | | |Expands further | | | |1936 | | | |Dabur India (Dr. S. K. Burman) Pvt. Ltd. | | |1972 | | | |Shift to Delhi | | | |1979 | | | |Sahibabad factory / Dabur Research & Development Centre (DRDC) | | | |1986 | | | |Public Limited Company | | | |1992 | | | |Joint venture with Agrolimen of Spain | | | |1993 | | | |Cancer treatment | | | |1994 | | | |Public issues | | | |1995 | | | |Joint Ventures | | | |1996 | | |3 separate divisions | | | |1997 | | | |Foods Division / Project STARS | | | |1998 | | | |Professionals to manage the Company | | | |2000 | | | |Turnover of Rs. ,000 crores | | | |2003 | | | |Dabur demerges Pharma Business | | | |2005 | | | |Dabur acquires Balsara | | | |2005 | | | |Dabur announces Bonus after 12 years | | | |2006 | | | |Dabur crosses $2 Bin market Cap, adopts US GAAP | | | |2006 | | |Approves FCCB/GDR/ADR up to $200 million | | | |2007 | | | |Celebrating 10 years of Real | | | |2007 | | | |Foray into organised retail | | | |2007 | | | |Dabur Foods Merged With Dabur India | | | |2008   | | | |Acquires Fem Care Pharma | | | |2009   | | | |Dabur Red Toothpaste joins ‘Billion Rupee Brand' club | | | |2010   | | | |Dabur makes its first overseas acquisition | | | |2011   | | | |Dabur enters professional skin care market | | | |2011 | | |Dabur India acquires 30-Plus from Ajanta Pharma | | | |2012   | | | |Dabur crosses Billion-Dollar Turnover Mark | | | | | | | | | | | 1. 8 Founder and Leaders |Founding Thoughts â€Å"What is that life worth which cannot bring comfort to others† | |The doorstep ‘Daktar' The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician tucked away in | |Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With m issionary zeal and | |fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and | |plague.Soon the news of his medicines traveled, and he came to be known as the trusted ‘Daktar' or Doctor who came up with effective | |cures. And that is how his venture Dabur got its name – derived from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur | |in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. | |S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small | |Calcutta house, to a household name that at once evokes trust and reliability. | |1. 9. Milestones- Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status| |in the industry.The Company has come a long way in popularizing and making easily available a whole range of products based on the | |traditional science of Ayurveda. And Dabur has set very high standards in developing products and processes that meet stringent quality| |norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to | |follow†¦ Milestones To Success. | 1. 10. Company Details Dabur Group With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently.Given the vast range of products, sourcing, production and marketing have been divested to the group companies that conduct their operations independently: [pic][pic][pic]  [pic] [pic][pic] Dabur Worldwide |[pic] | |Dabur's mission of popularizing a natural lifestyle transcends national boundaries. Today, there is growing global awareness on alternative | |medicine, nature-based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularizing this | |alternative way of life, marketing its products in more than 60 countries all over the world.Over the years, Dabur's overseas business has | |successfully transformed from being a small operation into a multi-location business spreading through the Middle East, North Africa, West Africa| |and South Asia. | |Our Products Worldwide- We have spread ourselves wide and deep to be close to our overseas consumers. Our overseas product portfolio is | |tailor-made to suit the needs and aspirations of our growing consumer base in the international markets. Offices and representatives in Europe, | |UK, America and Africa . A special herbal health care and personal care range successfully selling in markets ranging from the Middle East, Far | |East, North Africa and Europe.Inroads into several European and American markets that have good potential due to resurgence of the | |back-to- nature movement. Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict international quality benchmarks, to | |Europe, Latin America, Africa, and other Asian countries. Export of food and textile grade natural gums, extracted from traditional plant | |sources. Partnerships & Production- Strategic partnerships with leading multinational food and health care companies to introduce innovations in | |products and services. Six modern manufacturing facilities spread across South Asia, Middle East and Africa to optimise production by utilising | |local resources and the most modern technology available. | |1. 11.Manufacturing Facilities in India- | |[pic] | | | | | | | | | | | |1. 12 CEO OF DABUR- | |[pic] | | | |Mr.Sunil Duggal took over as the Chief Executive Officer of Dabur India Limited in June 2002, holding reins of the organization he joined in | |1995. Mr Duggal started his career as a management trainee in Wimco Limited in 1981 after getting his E ngineering Degree (Electrical & | |Electronics) from BITS, Pilani, and Business Management from IIM, Calcutta. His stint at Wimco continued till 1994, with a break in between when | |he joined Bennett Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foods as GM, | | | |Sales Operation.In 1995, he joined the Dabur family as General Manager (Sales & Marketing) of the Family Products Division with products like | |Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This Division spearheaded the spectacular growth recorded by Dabur in this period. | |Vatika was also launched during this period and is now the Company's second biggest brand. With his dynamic spirit and leadership abilities, he | |soon became Vice-President and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal was appointed Director Sales and Marketing of | |Dabur India Limited. And in 2002, he became the CEO of the Company – a professional with valuable experience to steer the company ahead in its | |growth plans. | |Spanning a career of over 20 years, Mr.Sunil Duggal has travelled widely across India and handled diverse portfolios that have helped him | |understand the dynamics of FMCG businesses and market trends. He is well versed in the intricacies of India's regional diversities and consumer | |needs. Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his official responsibilities, Mr. Duggal likes to | |spend time at home with his family and an occasional round of golf. | |1. 13. Corporate Governance- Good corporate governance and transparency in actions of the management is a key to a strong bond of trust with the | |Company’s stakeholders. Dabur understands the importance of good governance and has constantly avoided an arbitrary decision-making process.Our | |initiatives towards this end include: -Professionalization of the board | |Lean and active Board (reduced from 16 to 10 members) | |Less number of p romoters on the Board | |More professionals and independent Directors for better management | |Governed through Board committees for Audit, Remuneration, Shareholder Grievances, Compensation and NominationsMeets all Corporate Governance | |Code requirements of SEBI | |1. 14. Corporate Citizenship- When our Founder Dr. S. K. Burman first established Dabur, he had a vision that saw beyond the profit motive. In his| |words, â€Å"What is that life worth which cannot bring comfort to others? † This ideal of a humane and equitable society led to initiatives taken to | |give back some part of what Dabur has gained from the community.Our major initiatives in the Social sector include: Establishment of the | |Sustainable Development Society, or Sundesh, in 1993 – a non-profit organization to promote research and welfare activities in rural areas; | |Promoting health and hygiene amongst the underprivileged through the Chunni Lal Medical Trust; and Organizing the Plant for Life programme for | |schoolchildren – to create environmental awareness amongst young minds. Our commitment to Environment- Ancient wisdom of conservation- From times| |immemorial, Indian sages and men of wisdom have understood and appreciated the value of nature and its conservation. Our ancestors recognized | |that if we grabbed from nature beyond what was healthy, it would lead to all round degradation, and even the extinction of humanity. That is why | |nature was sanctified and worshipped in the form of gods and goddesses. | | | | | | | | | | | | | | | | | | |1. 15 Dabur upholds the tradition | |Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision of Dabur would never have been fulfilled. And that is the| |reason for our unfailing commitment to ecological conservation and regeneration.We would like to follow the principles of our ancient texts, | |which say: â€Å"Dehi me dadami te† – â€Å"you give me, and I give yo u†. | | | | | | | |1. 16 Back to Nature | | | |Rare herbs and medicinal plants are our most valuable resource, from which all our products are derived.Due to overexploitation of these | |resources and unsustainable practices, these plants and herbs are fast reaching the point of extinction. In view of this critical situation, | |Dabur has initiated some significant programmes for ecological regeneration and protection of endangered plant species. | | | | | | | |1. 17 Plants for Life | | | |We have set up the â€Å"Plants for Life† project in the mountainous regions of the Himalayas.Under the project, a high-tech greenhouse facility has | |been set up for developing saplings of rare and endangered medicinal plants. Fully computer-controlled and monitored, this greenhouse maintains | |the highly critical environmental parameters required for their survival. We are also developing quality saplings of more than 20 herbs, 8 of | |them endangered, through micro propag ation. In addition, satellite nurseries spread across mountain villages and contract cultivation of | |medicinal herbs helps in maintaining the ecological balance. These measures have also helped provide local cultivators the scientific knowledge | |for harvesting herbs and a steady source of income.So that they are not forced to exploit the environment to earn a livelihood. | | | | | | | |1. 18 Living a Green Heritage | | | |These are significant steps that can contribute to a better world for coming generations. To whom we would like to bequeath a world not bereft of| |nature. But full of flowering and fruit bearing trees, animals, birds and humans living in good health and complete harmony. |IT Initiatives | |At Dabur India Limited, knowledge and technology are key resources which have helped the Company achieve higher levels of excellence and | |efficiency. Towards this overall goal of technology-driven performance, Dabur is utilizing Information Technology in a big way. Thi s will help in| |integrating a vast distribution system spread all over India and across the world. It will also cut down costs and increase profitability. | |Our major IT Initiatives-Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April 2006 for all business units. | |Implementation of a country wide new WAN Infrastructure for running centralized ERP system. Setting up of new Data Centre at KCO Head Office. |Extension of Reach System to distributors for capturing Secondary Sales Data. Roll out of IT services to new plants and CFAs. | |Future Challenges-Forward Integration of SAP with Distributors and Stockists. Backward Integration of SAP with Suppliers. Implementation of new | |POS system at Stockist point and integration with SAP-ERP. Implementation of SAP HR and payroll. SAP Roll-out to DNPL and other new businesses. | | | | | |1. 20 Sustainability Report- | |At Dabur, environment and nature is the lifeline of our business.With a portfolio of Ay urveda and nature-based products, conservation of nature | |& natural resources is deep rooted in our organizational DNA, and in every aspect of our ever-growing business. We, at Dabur, have not merely | |incorporated the concept of sustainability into the core of our business but have, in fact, expanded it to encompass our aspirations and | |responsibilities to the society and to the environment. It is this concept that inspires us to optimize our business performance to tackle the | |new and growing challenges of environment and technology. It is a concept on which we aspire to build an organization that will continue to | |increase value for all our stakeholders for generations to come, hrough intensive focus on Conservation of Energy and Technology Absorption, | |along with Health, Safety and Environment Protection. | |1. 21. Conservation of Energy- | |Dabur has been undertaking a host of energy conservation measures. Successful implementation of various energy conservation pro jects have | |resulted in a 13. 8% reduction in the Company’s energy bill in the 2008-09 fiscal alone. What was noteworthy was the fact that this reduction has | |come despite an 8-9% volume increase in manufacturing, and an average 11. 7% increase in cost of key input fuels .The host of measures – key among| |them being use of bio-fuels in boilers, generation of biogas and installation of energy efficient equipment – helped lower the cost of | |production, besides reduce effluent and improve hygiene conditions & productivity. | |[pic] | |1. 22. Technology Absorption | |Dabur has also made continuous efforts towards technology absorption and innovation, which have contributed towards preserving natural resources. | |These efforts include: Minimum use of water in process by pre-concentration of herbal extract and reduction in concentration time.Uniform | |heating in VTDs by hot water as against steam earlier, resulting in 30% reduction in bulk wastage by using n on-stick coating and formulation | |change. Improvement in water treatment plant through introduction of RO (Reverse Osmosis) system for DM water, reutilization of waste water from | |pump seal cooling and RO reject waste-water management. Introduction of water efficient CIP system with recycling of water in fruit juice | |manufacturing. Development of in-house technology to convert fruit waste into organic manure by using the culture Lactobacilus burchi. The | |Company has achieved a host of significant benefits in terms of product improvement, cost reduction, product development, import substitution, | |cleaner environment and waste disposal, amongst others. | | |1. 23. Health Safety & Environmental Review | |Renewing the commitment to Health Safety and Environment, Dabur has formulated a policy focusing on People, Technology and Facilities. A | |dedicated â€Å"Safety Management Team† has also been put in place to work towards the prevention of untoward incidents at the c orporate and unit | |level, besides educate & motivate employees on various aspects of Health, Safety and Environment. The Company is also continuously monitoring its| |waste in adherence with the pollution control norms.In pursuance of its commitment towards the society, efforts have also been initiated to | |conserve and maintain the ground water level. The efforts include implementation of rainwater harvesting, which has delivered encouraging results| |and has put the company on the path to becoming a Water-Positive Corporation. Dabur also initiated a Carbon Foot Print Study at the unit level | |with an aim to become a carbon positive Company in years to come. At Dabur, we are committed to sustainable development throughout our diverse | |operations. And, we will strive to translate the good intentions into concrete and lasting results, contributing to the ultimate good of the | |society. | | | | | | | | | | | | |   | 1. 24. PRODUCT LINE Foods: †¢ Real †¢ Real A ctiv †¢ Hommade †¢ Lemoneez †¢ Capsico Health Care: ? Baby Care †¢ Dabur Lal Tail †¢ Dabur Baby Olive Oil †¢ Dabur Janma Ghunti ? Health Supplements †¢ Dabur Chyawanprash †¢ Dabur Glucose D ? Digestives †¢ Hajmola Yumstick †¢ Hajmola Mast Masala †¢ Anardana †¢ Hajmola Hajmola Candy Fun2 †¢ Hajmola Candy †¢ Pudin Hara (Liquid and Pearls) †¢ Pudin Hara G †¢ Dabur Hingoli ? Natural Cures †¢ Shilajit Gold †¢ Nature Care †¢ Sat Isabgol †¢ Shilajit †¢ Ring Ring †¢ Itch Care †¢ Backaid †¢ Shankha Pushpi †¢ Dabur Balm †¢ Sarbyna Strong Personal Care: ? Hair Care Oil †¢ Amla Hair Oil †¢ Amla Lite Hair Oil †¢ Vatika Hair Oil †¢ Anmol Sarson Amla ? Hair Care Shampoo †¢ Anmol Silky Black Shampoo †¢ Vatika Henna Conditioning Shampoo †¢ Vatika AntiDandruff Shampoo †¢ Anmol Natural Shine Shampoo Oral Care: †¢ Dabur Red Gel â € ¢ Dabur Red Toothpaste †¢ Babool Toothpaste †¢ Dabur Lal Dant Manjan †¢ Dabur Binaca Toothbrush Skin Care †¢ Gulabari Vatika Fairness Face Pack Ayurvedic Specialties †¢ Ayurveda †¢ Ayurveda Vikas 1. 25 Rural and urban potential Rural-urban profile OVERVIEW OF FMCG SECTOR IN INDIA- The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13. 1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 14. billion in 2008 to US$ 33. 4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer ‘upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.India is one of the largest emerging markets, with a population of over one billion. India is middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 145 million in 2007 one of the largest economies in the world in terms of purchasing power and has a strong -08 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG ma rket was estimated at around US$ 14. 5 billion in 2007-08. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. |Urban |Rural | |Population 2007-08 (mn household) |53 |145 | |Population 2009-10 (mn household) |69 |153 | |% Distribution (2007-08) |28 |72 | |Market (Towns/Villages) |3,768 |627,000 | |Universe of Outlets (mn) |1 |3. 3 | Source: Statistical Outline of India (2008-09), NCAERAn average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. [pic] 1. 26 Product Profile- Overview of VATIKA The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika has come to be amo ngst the company’s highest selling brands. It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in 2000, by Vatika Anti-Dandruff Shampoo.In 2003, brand sales crossed Rs. 1,000 million. From the company’s perspective, Vatika is expected to continue to drive its growth in the years to come. With its innovative offerings, the brand aims to become a frontrunner in the market for hair care and skin care products. Vatika is a comparatively young brand but is already acknowledged for the qualitatively influential and pioneering role that it has played in the evolution of the categories it has had a presence in. Currently, the total annual sales of Vatika products are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a 6. 4% market share in the coconut hair oil category (Source: ACNielsen ORG-MARG, 2007).Vatika has not just been successful in garnering a premium image but, today, stands as the preferred and trusted brand of 11. 1 million users (Sou rce: IRS Household Data). STP Analysis of Vatika hair oil Segmentation vatika Hair Oil was launched at an almost 100% premium to the market leader. This meant that the segment of the market that dabur wanted to cater to was the premium segment which valued nourishment of the hair above the price and it tried to attend to that segment which was not price sensitive. Targeting This was in line with its proposition and overall brand strategy of a premium up-market product targeted for individual needs as opposed to the collectivist culture of the category. It targeted the high-income urban category of hair oil users.Since the product was expensive it could mainly cater to the urban market as opposed to the rural market where consumers are highly price sensitive. Being positioned as having amla, henna and lemon extracts, the product was targeted towards the young, contemporary, educated, multi-faceted, achievement-driven and confident women who were positioned as the Vatika Woman. Positi oning ‘Total hair Care’ brand: The product innovation was fed by the vital consumer insight that many women in contemporary India are worried about hair problems caused by urban pollution, frequent change of diet due to geographical mobility and other factors. Beset by modern-day hair problems, they are far more inclined to rely on homegrown remedies.By offering hair oil that combined the benefits of natural products in a single pack, Vatika created a niche for itself as the ‘total hair care’ brand. â€Å"Natural† offering: Vatika is a brand that espouses traditional wisdom about health in a modern format. It believes that nature has perennial answers to day-to-day health issues, particularly when it comes to hair care and skin care. In a world where modern living causes untold stress the Vatika brand holds out the promise of providing natural ingredients that rejuvenate and safeguard the human body in an extraordinary way. This concept is put to wor k through contemporary, modern products, offered by Vatika.The Vatika woman: The Vatika woman is young, contemporary, educated, multi-faceted, achievement-driven and confident. It is in the Vatika brand that she sees a true reflection of her own personal ideals. Through creation of the concept of Vatika woman, it has tried to carve out a new positioning in the minds of the new age woman. MARKETING MIX OF VATIKA HAIR OIL Vatika Hair Oil has made a huge impact with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil. The mix shall be analyzed as followed: †¢ Product †¢ Price †¢ Place †¢ Promotion Product |Price |Promotion |Place | |Product Variety |List Price |Advertising & Promotion |Channels | |Quality |Discount |Public Relations |Location | |Design |Financing Schemes |Sponsorships |Inventory | |Features |Credit Terms |Internet Marketing | | |Brand Names | | | | |Services | | | | 1. 27.PRODUCT: Brand Name: Vatika in Hindi means ‘garden’. The brand attempts to live up to the promises – beauty and nature – that are associated with its very name. Starting with these associations Vatika has assiduously built a brand that delivers on all these values through its various product offerings, the mother brand being Vatika Hair Oil. Innovative product offering: Vatika Hair Oil is coconut hair oil with special ingredients adding value to the product. While coconut oil has been regularly used by Indian women as a basic hair nutrient, a combination of herbs and natural products such as henna, amla and lemon have been used for special hair needs.Coconut hair oil provides nourishment to the hair, while henna along with other herbs coat the hair and protect it from oxidation, thereby maintaining its natural colour. Amla strengthens hair roots and helps maintain their natural hea lth and thickness. Lemon with its astringent action controls sebum flow and helps in prevention of dandruff. Apart from henna, amla and lemon, it also contains other natural ingredients like brahmi, neem, bahera, kapurkachari, harar, and ugdha and sugandhit dravyas. Packaging: The qualities of Vatika products, ascribed to the brand by hundreds of thousands of satisfied consumers, have been further underlined by its attractive packaging.In a category dominated by blue packs as analogous of pure coconut oils, Vatika broke the norm with its white and green bottle with a mushroom cap. The green-and-white colors, used in its packaging, reflect the brands’ natural ancestry and give it a premium look. These also help Vatika stand out in the cluttered environment of Indian retail. Available in: Bottles 75 ml, 150 ml, 300 ml Flip cans 150 ml, 300 ml Flip cans were introduced for the winter season. Quality: Vatika products contain natural ingredients that have been blended together thr ough scientific processes at Dabur’s in-house research laboratories. Dabur Research Foundation has more than 100 scientists working together to make superior quality products that match international standards. PRICE/QUALITY MATRIX Price> |High |Middle |Low | |Quality | | | | |v | | | | |High |Luxury Segment |Ideal For Penetration |Premiere Offering | | |VATIKA | | | |Middle |Overpriced |Average |Real Bargain | |Low |Make The Sale and Run |Unhappy Customers |Cheap Goods | PLACE Vatika products including Vatika Hair Oil are sold in 38 countries through more than 15 lakh retail outlets and 5,000 distributors who service the entire country through a wide marketing network. [pic] Dabur’s distribution network extends beyond India in the following countries as well: Distribution Network †¢ Central, North & South America †¢ Australia †¢ Asia †¢ Middle East †¢ North & South Africa †¢ East & West Europe 1. 28 Promotion Vatika – the key focus brand of the company – has always been well supported.The company realized early that, from the perspective of brand building, it was vital to invest in this brand. Vatika Hair Oil’s first promotion: It focused on the key benefit – beautiful hair without hair problems – that came about as a result of the extra nourishment through the value addition of henna, alma and lemon-derived additives. Creating conceptual awareness: In the initial phase of the communication, the marketing objective was to create conceptual awareness about the new product – the goodness of coconut oil enriched with natural herbs. Vatika was firmly established as the leader in the new category of value-added hair oils and its promotion campaign was so successful that the product segment itself came to be identified with Vatika.In 1997, the company created a new promotion campaign, which reinforced the obvious fact that most coconut oil brands were, not equipped to combat the e ffects of pollution, hard water and chemicals – the major causes of hair ailments and hair deterioration. STP Analysis of DABUR CHYAWANPRASH Segmentation Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under the category of health supplements. The segments that it considers are growing kids, competitive youth, ever-busy housewives and the aged. For the growing kids: In today's competitive environment, the children are under high pressure to excel. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient.For ever-busy housewives: The ‘homemaker' needs to be fit in order to shoulder all responsibilities. For the aged: Old age weakens a person physically and mentally. After segmenting the population into these categories it aims to keep them fit and healthy. TARGETING Traditionally, chyawanprash was supposed to be a health supplement for the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and kids. This it is trying to achieve through its promotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in today’s demanding lifestyle.Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him, meets his moment of truth when outperformed by a young Chyawanprash user, thus reaching out to kids. His final conversion from a non-user to a Chyawanprash user connects with the Youth. These two ads complement each other and connect very well with the targeted consumers. POSITIONING â€Å"Andar se strong†: Dabur chyawanprash has the tag line â€Å"Andar se strong† By using a natural language instead of scientific language it is able to connect with the consumers and is able to achieve a better positioning in the minds of the Indian health conscious consume r. A category like Chyawanprash for instance needs to understand that in employing the category language it loses any chance of expressing its own benefit distinctively.Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. The brand conveys this health conscious holistic view of the product. Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection, processing and quality control of right herbs along with scientific and clinical studies – makes DCP a trustworthy offering for consumers. Consumers view DCP as a product by a trusted brand and therefore do not need to think twice before making a purchasing decision. 1. 29 MARKETING MIX FOR DABUR VATIKA HAIR OIL AND DABUR CHYAWANPRASH [pic] | | | | | | | | 1. 30. MARKETING MIX OF DABUR CHY AWANPRASH Dabur Chyawanprash is the market leader in the chyawanprash segment and has achieved this with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as followed: †¢ Product †¢ Price †¢ Place †¢ Promotion Product |Price |Promotion |Place | |Product Variety |List Price |Advertising & Promotion |Channels | |Quality |Discount |Public Relations |Location | |Design |Financing Schemes |Sponsorships |Inventory | |Features |Credit Terms |Internet Marketing | | |Brand Names | | | | |Services | | | | Product Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent.In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essential ly a health supplement. Known as the â€Å"elixir of life†, Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immune-stimulant. Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. It is these properties that make Dabur Chyawanprash a preferred choice for its users.Ingredients of Dabur Chyawanprash †¢ Vishwast Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts. †¢ Special Vishwast fortified with additional health beneficial herbs like   Keshar, Akarkara etc. Available in: Dabur Chyawanprash is available in three sizes to cater to the needs of different types of people. 1. One kilogram pack 2. 500 gram pack 3. 250 gram pack PRICE The pricing o f Dabur chyawanprash is very competitive. Dabur chyawanprash uses second-degree price discrimination i. e. more the quantity, lower the price. 1kg Rs. 175. 00 500gms Rs. 100. 00 250gms Rs. 55. 00 PRICE/QUALITY MATRIX Price> |High |Middle |Low | |Quality | | | | |v | | | | |High |Luxury Segment |Ideal For Penetration |Premiere Offering | | | |DABUR CHYAWANPRASH | | |Middle |Overpriced |Average |Real Bargain | |Low |Make The Sale and Run |Unhappy Customers |Cheap Goods |PLACE- Dabur has a very wide distribution of its products through 1. 6 million retail outlets and 50 C & F agents all over India who distribute products to the retailers. A distribution of C & F agents and manufacturing locations is given below. Dabur’s distribution network extends beyond India in the following countries as well: 1. 31. COMPETITOR ANALYSIS OF VATIKA The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin, Emami, Bajaj, Marico, HLL, which together with Dabur have about 64% of India's domestic market. Dabur is one of India's largest players in the hair oil segment and the fourth largest producer of FMCG. It was established in 1884, and had grown o a business level in 2003 of about 650 million dollars per year. Dabur Hair Oils have a market share of 19%. We have tried to analyse the competition for Dabur in the Hair Care segment as follows:[pic] Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category. The pleasantly perfumed hair oil has its main market in the Hindi belt and also has significant presence in eastern and western India. Its share is 6% of the total hair oil market. Emami has existence in hair oil market through Himani Navratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market.Bajaj has two flagship oil brands – Bajaj Brahmi Amla and Bajaj Almond Drops — currently have a value sha re of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Overall it has a market share of 4% in hair oil market. Marico’s Parachute is premium edible grade oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute's primary targets have been women of all age. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector.It has a market share of 28%. HLL has two products, Clinic plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3% share in hair oil market. COMPETITOR ANALYSIS OF CHYAWANPRASH The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu and Him ani, which together with Dabur have about 85% of India's domestic market. Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows: [pic] Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector w

Organizational Development Essay

1. What are the significant differences between action research, appreciative inquiry, future search and whole systems intervention? Under which conditions are each MOST appropriate? According to the definition, action research is a procedure which is connected with carrying out practical knowledge. Action research has a goal of combining such components as action and reflection, theory and practice, in order to obtain certain results in the situation of change. This approach is the most appropriate when companies face changes which do not require major actions. Appreciative inquiry primarily deals with explaining people the benefits of the process, discussing its main positive features, focusing on positive experience. It includes looking for answers to the questions regarding the potential of the organization can be realized to the fullest. Generally, it is a method which deals with affirmative action and visions of the possible solutions of various problems. This approach is the most appropriate for organizations which face change in major areas of their activity. Future search is a planned type of visioning process which has a goal of creating a vision of the future. To some extent, it consists of a new way of involving groups of shareholders in strategic planning for companies in which they own stock. Future search applies different methods to make shareholders explore past and future, as well as identify the goals for the future. It’s the most appropriate for situations when the company has to change strategic objects. Whole system intervention stands for actions taken in order to achieve the changes not in the certain divisions of organizations but in the whole system. This approach is the most efficient in situations when organizations face changes in their general strategy, and want to expand into new markets. 2. Compare and contrast the differences between traditional action research methodologies and appreciative inquiry. Under which circumstances are each MORE appropriate. The main difference between traditional action research and appreciative inquiry is that they have different methodic. In traditional action research, the approach includes isolating the problem from the system, investigating it, and offering a solution. This approach works for smaller organizations and situations when change which organizations are facing does not touch upon strategic problems. Appreciative inquiry approach is more complicated. According to it, it’s necessary to identify the main benefits of the process, all of its advantages, and focus on them. All of the negative sides of the problem have to be neglected for a while. There has to be research made on all the success stories, and actions carried out according to that positive experience. A software developer is experiencing an increasing number of customer complaints and a general trend toward lower sales. Describe three reasons executives in this organization might be slow to realize that a problem exists or to identify the main cause(s) of these symptoms. Give one example from your past experience when something like this occurred and how it was handled. In your opinion, was this handled correctly? How should it have been handled? The main reasons of customer complaints which the managers of the company do not notice are the following: –Â  The need to improve the quality of software because it is not up to date anymore. The company has to make sure all of the requirements which customers have are satisfied by the quality of the products which are being produced. – The need to improve the skills of the employees. The employees have not been trained according to the requirements of the modern software field, therefore they do not offer the high level of service which customers need. Therefore, employees have to go through training programs. – The need to enter new markets, for example networking design where there are fewer competitors. The company needs to expand its activity to different markets because computer software market is too narrow for it. One of the situations which I was witnessing was the restructure of the bank. As more money was invested into it, it could expand its activity to a larger number of operations, and new departments had to be formed in order to make the most efficient structure. However, the new structure turned out inefficient, and management started considering the problem of lower revenues. In order to achieve the best results, the management had to apply appreciative inquiry approach according to which all the leaders of teams had to remember all of the mot successful situations in their teams’ activities. The vision of new departments’ objectives had to be carried out according to the previous successful experience which teams had before. According to the future vision of the departments, all the tasks had to be chosen for employees. In my opinion, the approach of appreciative inquiry would be the most efficient in such a case.