Project Sponsorship And Decentralization Of Decision Making Assignment

Project Sponsorship And Decentralization Of Decision Making - Assignment Example It creates a condition whereby internal support is recognized, and all the customers have an executive way of communication. The sponsor's and project manager's names are while making project proposals and hence chances of going through are high. Sponsors are very helpful in the launch of projects since they help in making decisions on staffing and priorities in the project. Project sponsors increase the commitment of the managers to the project and hence minimizes the probability of the project failing. The project sponsors help in decision making in projects and hence the managers and the rest of the team will work towards success. Project managers are required to report to project sponsors and therefore managers will encourage communication with other team members so as to have details of all that is taking place. The pressure on the managers leads to the success of the project. Decentralization of decision making is paramount if the executives are willing to empower the project t eam. All the team members must be allowed to participate in decision making. The managers must be willing to help other line managers in areas that they find difficult. There must be shared accountability within the organization. Any faults should be taken as organization failures rather than personal failures. The kind of leadership in the organization should be team leadership rather than a project manager centered leadership. The organization must be willing to share authority and power among project and line managers.

Electric Fan Industry Case Study Example | Topics and Well Written Essays - 250 words

Electric Fan Industry - Case Study Example Unfortunately, a relevant data could not be found and had to use a monthly production by organized sector since 2000 A.D. Anyway, this study will be analyzed to allow the manager to make a decision to choose which method is better in decision making. The methods in question involve regression, and additive and multiplicative. After thorough scrutiny of all the methods, it was concluded that regression model was the most efficient method due to less errors. In order to reach this conclusion, a myriad of analysis tools such as, StatTools 6, MS Solver, were used in the analysis of sample data and results using spreadsheets. The Bhagyanagar Fans Limited Company has been experiencing a reduction in the components supply by many units in the last peak season. So, the association decided to do something about it by hiring Ravi Kumar as a market research executive to come forward with a model that will stop the company from losing money and help them better understand the short term demand pattern. But according to David W. Stockburger, in order to make this forecast, or the info which needs to be predicted, must be obtained from some kind of sample data, then transform this information into the predicted. The young executive, Ravi Kumar, despite his unsuccessful research data, was accepting the challenge to work with the only available data he could find, the monthly production from 2000 A.D., in order to come up with a short term forecast for the next six months as requested by the owner, MR. Tibrewala. Different tools were used in the analysis of the electric fans production such as, MS Excel Solver, and StatTools 6 to determine the best forecasting model where the properties of regression, additive and multiplicative models were discussed. After all of these models were analyzed using the historical data, the trend and the seasonality which had the most impact on the data. The regression model

A pizzeria business plan

A pizzeria business plan Executive Summary This is a business plan for a Pizzeria based on producing a differentiated product in a premium location. The objective is to differentiate the operation from any other restaurant operation based on the concept of superior quality food based on the exclusive use of premium natural ingredients for every element of the product delivered from a conventional cheese and tomato pizza to the unique menu items. At the same time the operation is such that its environmental footprint is minimized and it operates in a manner that maximizes social responsibility in every facet of its operation. Pricing relative to other Pizzerias will be premium, but compared to most of the restaurants in the same quality bracket very competitive. The longer-term plan will involve additional Sofian Eat restaurants on either an owned or franchised basis or a combination of the two. This initial plan is for the pilot operation, which will serve as a model for future openings of Sofian Eat. Essentials to success The planned operation is a restaurant. The underlying keys to successful restaurant operation are good food served in a clean and pleasant atmosphere. These are a ‘given in any successful restaurant, but in themselves are not sufficient to create any great success. â€Å"Positioning is an underleveraged restaurant marketing component. Positioning is the place you hold in the customers or prospects mind relative to the competition (the cheaper choice, the higher quality choice, et cetera). Effective positioning involves incorporation of your Unique Selling Proposition (U.S.P.).†[1] (Quantified Marketing Group, 2010) In Sofian Eat success will depend on creating a unique â€Å"product† based on the publics concern for the environment and the wholesomeness of food. This will be incorporated into a unique ambiance and menu that will provide a dining experience that hopefully customers will enjoy and wish to repeat. An important element in the overall concept is that because Sofian Eats is dedicated to concepts concerning the environment and natural food, which the client is aware of and approve, they will have an underlying â€Å"good feeling† about what they are doing when they enjoy a meal at Sofian Eats. In Principles of Marketing Dr. Philip Kotler uses the fast food industry as an example of marketing being used to sell. â€Å"Shoddy, harmful or unsafe products†, and bemoans the fact that this American approach to restaurant marketing is catching on in Europe.[2] The marketing approach used in this project is unashamedly copied from another American Company, Ben Jerrys Ice Cream that takes a totally opposite approach.[3] While not as successful as McDonalds, Ben Jerrys built a business from a single tiny location to a major company and the founders finally sold the company to Unilever in 2000. 1.0 Terms of Reference 1.1 To 1.2 From These three items are not ordinarily a part of a business plan, and I am not totally clear on what is wanted here. Clearly, I cannot fill in â€Å"to and from†. I suspect that the three items involves only a few words with the possible exception of â€Å"terms of reference†. I will gladly write something for you about this as a revision if you can tell me what it is supposed to do. Thanks. Your writer 1.3 Business Plan (Sofian Eat) The plan is for a pilot restaurant in what is hoped will become a chain or franchise operation in the long term. This plan is based entirely on the pilot project and does not include any discussion of possible future developments or expansion into additional locations. Decisions concerning this will be made based on the success of the pilot project and what is learned by operating what is planned as a unique style of restaurant operation. 1.4 Date handed in The due date of the project is 18 March 2010. 2.0 findings The research findings are based on the work of Kivela, Inbakaran and Reece[4] and Quantified Marketing Group[5], which seem to support each other closely. The consensus is that restaurant marketing is difficult, and to be successful requires very careful research and analysis. A part of the problem is that restaurateurs are just that and not professional marketers. They know how to operate a restaurant but are not ordinarily knowledgeable in modern marketing techniques. This can be considered a positive element as it potentially provides an entrepreneur that is trained in marketing a competitive advantage. The suggestion is that conventional marketing using mass media is not practical while so called neighbourhood marketing is. Invest marketing funds in persuading customers to spend more per check and return more often. 2.1 Market research The questionnaire and research approach were based on the work of Clark and Wood.[6] (Clark Wood, 1999) Their work implies that the quality, range and type of food are key determinants in consumer loyalty. Their work also suggested the nature of the target clientele of the operation. A summary of the finding of the limited sample of 25 street interviews in the target neighborhood is presented below. The questionnaire is included as an appendix. What we see in the market research is a demographic pattern that is almost ideal and emphasis on the quality of the food and variety of menu offerings as criteria for restaurant selection. The emphasis on the mid price range and above is also the target market sought. There was no pattern in the response to favorite restaurant with only one being mentioned twice and the others all individual choices. The most common response to the why is it your favorite centered on the combination of good food and pleasant atmosphere. The only surprise is that five respondents indicated that a personal relationship with the proprietor was an important factor. 2.2 Location 142 Cowan Street, Kensington, London SW1. (This is obviously a fictitious street location) 2.3 Competition The competition broadly defined is any and every restaurant or eating establishment in London, and eventually anywhere a Sofian Eat is opened. What is planned is the creation of a unique â€Å"niche† where the competition will be limited or non-existent. 2.4 Objectives mission statement The Mission of Sofian Eat is threefold: The social mission is to operate the company in a manner that recognizes the role played by businesses in society. It will facilitate this goal by developing original and innovative approaches to improve the quality of life in the areas in which it operates The product mission is to produce the finest quality all natural pizza and innovative new culinary creations. The commitment of the business is to incorporate only wholesome natural ingredients and promote business and culinary practices that respect the earth and the environment. The Economic Mission is to operate the business on a sustainable financial basis of profitable growth and expansion. This will increase the values for stakeholders while it expands opportunities for the development and career growth of the companys employees.[7] 2.5 Business name The business name will be Sofian Eat 2.6 Legal Structure The initial public structure will be a corporate structure created with the longer-term objective of selling shares in a public offering at some point down the road. 2.7 Marketing Plan The marketing plan will be based entirely on product differentiation. Any attempt to create a marketing plan based on price competition in conventional pizza or Italian food is doomed to be at best a â€Å"me too† operation. There is no shortage of pizzerias or ethnic restaurants in London or almost anywhere else. The underlying marketing plan is based almost entirely on differentiating the product and the restaurants in which it is served from the competition in terms of the restaurants dà ©cor and ambiance and the menu. The long term objective is to create a â€Å"brand† that will be difficult to duplicate and will present an immediate â€Å"picture† in the mind of the consumer when they think Sofian Eat. The fact that this operation will have a formal marketing plan is in itself a competitive advantage. A marketing consulting company, Quantified Marketing Group, has an extensive and professional discussion of restaurant marketing tactics. While there is little relevant academic research on restaurant marketing this source is a good substitute. They discuss exactly the topics underlying this project such as branding, positioning, differentiation and segmentation.[8] 2.7.1 Marketing USPs The marketing Unique Selling Propositions will include the concept that everything provided on the menu is created from wholesome natural products and produced and served in a way that is at least environmentally neutral and hopefully environmentally positive. For example, the take out pizza boxes will be made of recycled paper and biodegradable. The layout and ambiance of the restaurant will contribute further to the concept of a USP. A further USP will be menu items that are unusual and unique. For example, Sushi Pizza will be sushi served on a crisp pizza dough â€Å"platter† with individual items arranged artistically on small segments as finger food. Kebab pizza will be thin sliced roasted lamb with fresh vegetable bits and yogurt sauce. While these may not be huge volume items they will help differentiate Sofian Eat from the competition. They also emphasize the wholesome ingredients aspect of the menu. A further differentiation will be the offer of two dining rooms, one for adult dining and one for family dining with children. The ambiance will be different, and the family dining area will offer a special menu for families featuring offering that will particularly appeal to children in addition to the menu offered in the adult section. In his book Marketing Management Philip Kotler emphasizes that a USP can vary from segment to segment, but the key is that it amounts to formulating a benefit, motivation, identification or reason why the audience should think about or investigate the product.[9] 2.7.2 Marketing segmentation Obviously, any restaurant wants to appeal to the widest possible array of potential clients. Sofian Eat is aimed primarily at a relatively young and affluent audience with some refinement of taste. This would encompass singles, families with children from toddler to teens, and some older and middle-aged clients that enjoy dining out. As a pizzeria, pricing would be at the upper end of the scale of pizza restaurants, but not premium priced. If pricing were compared on comparable items, for example a 30-cm. pizza with onion, garlic, mushroom, cheese and tomato sauce the premium would be a pound or two. Conversely, the sushi pizza would be a relatively expensive item compared to most pizza products, and the kebab pizza would be several pounds more than a pizza bolognaise in the typical pizzeria. In an attempt to widen the potential market Sofian Eat would offer a variety of additional menu choices outside of the typical Italian offerings of spaghetti and Lasagna. The wine list would also have an extensive variety of quality offerings appropriately priced. 2.7.3 Product The product is the key to the potential of Sofian Eat. The insistence on pure wholesome ingredients without any chemical contaminants or preservatives is the first requirement for a differentiated product. Cooking over natural wood fires and in wood burning brick ovens is another element. Using these natural products to create innovative menu offerings such as the sushi pizza is another product innovation. Product is the ultimate key to branding and product positioning. It is the objective to convince the customer that food made of wholesome natural ingredients and prepared in an environmentally friendly or at least neutral manner is both better tasting and healthier than the alternatives offered by the competition. â€Å"Positioning is the place you hold in the customers or prospects mind relative to the competition†[10] It is also the key to branding. â€Å"Brand-building is closing the gap between what you promise and what you deliver. A strong brand is one that has alignm ent between the promise and execution.†[11] The product and product quality is the foundation of a successful restaurant brand. 2.7.4 Pricing In spite of the insistence on ingredient quality, the menu model would try to keep food costs to less than 30% of menu item price. It is envisioned that menu prices will be above pizzeria averages, but still modest compared to up-scale restaurants. They would be in keeping with the income of the target market of middle to upper income clientele. 2.7.5 Promotion Restaurant promotion is a complex subject. Initially, it has to be aimed at getting diners through the door and to a table for the first time. This is however the most expensive and least effective forms of promotion. Research has shown that new customer acquisition is 7-10 times as expensive as building sales through increasing frequency, party size and check average. Because Sofian Eat is initially at least a neighborhood restaurant, flyers, local billboards and similar media are more appropriate and hopefully more effective. A sidewalk food sample give away is a tool that has been carefully considered and is deemed worthy of an experimental effort. 2.7.6 Place The initial restaurant will be located in Kensington, London. While Kensington is a high cost and highly competitive area it also has the affluent clientele that Sofian Eat is targeting. It also has relatively high foot traffic and high rent is offset by high visibility. This is closely associated with promotion as discussed above. 2.8 Finance 2.8.1 Sources Initial investment will come from the resources of the founders and a few selected outside investors. As the operation envisioned will be fairly extensive, involve a high rent location, and will probably be cash flow negative for some months at least, substantial initial funds are required. Based on the expected success of the pilot operation in a high visibility neighborhood expansion of additional restaurants emulating the first one is considered as part of the plan. This would require substantial external financing and a public offering to finance this is anticipated. 2.8.2 Cash Flow The companys cash position is based on an equity contribution of  £1,000,000 and borrowings of  £2,000,000 repayable over 10 years starting in year 3. The company is expected to pass the break even point late in its second year of operation and obviously the cash position will deteriorate continuously to this point. It would drop to somewhere in the vicinity of  £100,000 or a bit more prior to the projected passing of the break-even point in the second half of year 2. It should improve to the point where the first payment of  £200,000 on the debt could be handled without problem in year 3. 2.8.3 Profit and Loss accounts The company is projected to loose money in its first two years with the break-even point reach in the second half of year 2. Food cost is projected to drop progressively as volume increases as a result of volume purchasing and lower waste as volume grows. In the model revenues from food and beverage sales are combined, as are their costs. Rent is based on a restaurant of 700 sq. meters with rent of  £1,200 per meter per year or  £70,000 per month,  £840,000 per year. The projected lease is for 10 years with no provision for rent increases in that period. Depreciation is based on the investment of  £1,200,000 in fixtures, dà ©cor and equipment with the depreciation based on the 10-year initial lease with a zero residual value. Selling, general and administrative and other expenses are estimated with more detailed budgeting at a later point. The tax rate is arbitrarily set at 36% over the entire period of the projection. This should prove to be conservative. In fact, in the th ree years included in the projection no tax will be due in the first two years on operating losses and in year 3 any tax due would be more than offset by loss carry forwards. The Personnel cost is based on the Personnel Model included in the financial statements show as appendices. 2.8.4 Balance Sheet The projected balance sheet presented is simplistic. The only current asset is actually cash and some small quantity of inventory. The Liabilities would be accruals of the SGA and operating expense and payroll costs. In the balance sheet model they are show as exactly offsetting current assets other than cash for the sake of simplicity. Effectively, working capital would be the cash position. In practice, the loan might well be taken down in tranches as required. Equity is shown as negative by the end of year 1 and remains negative throughout the three years projected. It would turn positive at some point in year 4 based on the projected income of over  £250,000 in year three and still growing. 2.9 Organization 2.9.1 Structure The organization of a restaurant is fixed in that there is the â€Å"front of the house†, the tables and bar where patrons are served and the â€Å"back of the house† or the kitchen. The Maitre de Hotel or headwaiter that supervises the wait staff and seats patrons runs the â€Å"front of the house†. The kitchen is obviously run by the Chef who in addition to being responsible for the recipes supervises all the actions of the kitchen staff and is responsible for purchasing the ingredients. There is a manager and assistants who are responsible for the overall operation and supervision of the till. The general manager would also be responsible for keeping records and payment of accruals and salaries.[12] 2.9.2 Motivation Virtually every text on restaurant and hotel management stresses the importance of training for the staff. Motivation is a key element in this training process. In a restaurant operation one of the obvious keys is the quality of the chef. He might be compensated on a profit sharing basis that also reflects the relationship of food cost to food revenues. In practice, the service staff is compensated in large part by tips that reflect the quality of their service and their attitudes. Motivation is not usually a problem in this area. For the other members of the staff training, fair treatment and recognition of good performance should provide the level of motivation necessary.[13] 3.0 Conclusion 3.1 Strengths The key elements that are expected to contribute to success are the differentiation of product based on the exclusive use of natural and wholesome ingredients. This combined with a prime location, attractive dà ©cor and the use of separate facilities for patrons with and without children are the elements that make Sofian Eat a unique and attractive dining experience. The underlying approach is to build a marketing plan based on product differentiation. Restaurants all serve food, and basically food is food. It does vary in quality and presentation. Sofian Eat is certainly not the only restaurant to serve premium quality food, but it is hoped that the presentation and menu combined with good value will build a solid business. 3.2 Weaknesses The most serious weaknesses as this plan is being prepared are the world economic situation, the number of strong competitors in the selected location, and the very high cost of the desirable location. The economic situation, which has produced high unemployment in the UK, has impacted the traffic of the restaurant industry as potential patrons close their pocketbooks. This is at odds with the continued premium rents commanded for prime locations. The timing of the opening is possibly the most serious weakness of the plan. 4.0 Evaluation 4.1 Internal The internal elements that are of greatest importance are the ability of the operation to differentiate itself from the many other restaurants in London based on the menu, the quality and presentation of the product, and the ambiance of the operation. It is essential that dining at Sofian Eat is a very special experience. This will result from the ability of the management to produce an operation that is superior in all respects from the opening day. The standard of every facet of the operation must be â€Å"perfection†. While this is obviously unattainable, the deviations from this standard must be few and far between. This will be the element that makes the operation a success in spite of economic difficult or strong competition. 4.2 External The primary external question is the economic situation and the recovery of the United Kingdom economy. There are no other particular external factors that will influence Sofian Eat any differently than they do any other restaurant operation. The economic situation makes the situation difficult for almost any business and starting a new business will be particularly difficult base on it. References Ben Jerrys. (2010). Ben Jerrys Mission. Retrieved March 15, 2010, from http://www.benjerry.com/activism/mission-statement/ Clark, M., Wood, R. (1999). Consumer loyalty in the restaurant industry: A preliminary exploration of the issues. British Food Journal, 101(4), 317-327. Kivela, J., Inbakaran, R., Reece, J. (2000). Consumer research in the restaurant environment. Part 3: analysis, findings and conclusions. International Journal of Contemporary Hospitality Management, 12(1), 13-30. Kotler, P. (1991). Marketing Management (7th ed.). Englewood Cliffs, NJ: Prentice Hall. Kotler, P., Armstrong, G., Wong, V., Saunders, J. (2008). Principles of Marketing. Essex, UK: Pearson Education Ltd. Quantified Marketing Group. (2010). Restaurant Marketing Tactics. Retrieved March 16, 2010, from http://www.quantifiedmarketing.com/learning_center/restaurant-marketing.php

History Of Columbia Broadcasting Company (CBS) :: essays research papers

The Columbia Broadcasting Company or â€Å"CBS† in layman’s terms was founded in 1927 as a radio network under the â€Å"United Independent Broadcasters† name, which was a radio-broadcasting network. The name was changed to CBS in 1928, which was the same year that William S. Paley, the son of a cigar making tycoon, took over control of CBS with his fathers financial support. Paley took over CBS for $400,000 and inherited a network that consisted of 22 affiliates and 16 employees. Although he had little technical knowledge of radio, Paley believed he could only attract advertisers if he delivered large audiences. To fulfill this goal, he decided to give CBS programming to local radio stations for free, as long as they agreed to surrender any part of their schedule to advertiser sponsored CBS network shows. In less than a decade, CBS had blossomed to 114 stations from 22 when Paley took over. Another one of Paley’s gifts was his ability to recognize talent , he quickly signed mega stars such as Bing Crosby, Kate Smith and Morton Downey. But such was the case in those days, those stars were quickly lured away by highly popular rival NBC for more money.   Ã‚  Ã‚  Ã‚  Ã‚  However, all was not lost for the young Paley. What he lost in stars he got back in news coverage. Don’t forget I’m still talking radio here. Paley hired Edward Klauber, a former New York Times editor and Paul White who was a former United Press reporter, they began to build a solid news division at CBS. â€Å"CBS News† really didn’t come together until Klauber hired some guy you probably never heard of by the name of Edward Murrow. Klauber assigned Murrow to London as director of the European talks. In March of 1937, before the start of the Great War, Murrow teamed with William Shirer to report on â€Å"Anschluss†. These reports formed the foundation for what would become â€Å"The CBS World News Roundup† which, during World War II Murrow assembled a great team of reporters commonly referred to as â€Å"Murrow’s Boys† who consisted of Eric Sevareid, Charles Collingwood, Howard Smith, Winston Burdett, Richard Hottelet and Larry LeSueur. Murrow would end up reporting on and airing one of the greatest accounts of his experiences and descriptions of touring the Nazi concentration camps, which we heard in class.   Ã‚  Ã‚  Ã‚  Ã‚  Meanwhile back in the states, by the time that the war had ended, television was starting to get important as the networks looked toward the future and they were eager to get all the stars and ratings they could get their hands on.

Valkyrie Case Study

Valkyrie Lighting is facing a new challenge within its current operations. This challenge comes in the form of expanding and improving its current supply chain management system. In this new implementation, the Valkyrie management team will need to incorporate three vital concepts to achieve success in the highly competitive market of technical lighting. With this new supply chain management focus, Valkyrie will experience many issues that will need to be addressed to minimize the time it takes to get its expanded supply chain up and flowing smoothly. A number of the issues that Valkyrie experiences can be summarized into three main issues that are currently holding up Valkyrie’s success in this new endeavor. The main issues that Valkyrie faces include: product accessibility, limited communications, and current barriers to its global expansion strategy. With this new focus on supply chain management, Valkyrie must decide between implementation of a production line within Sunshine Product’s facility, or establish a legal binding agreement with Sunshine Products to act as their sole supplier. Currently there is a lack of an integrated computer system that prohibits both Valkyrie and Sunshine to adequately respond to each other’s product demand needs. Due to communication being vital to any business’s success, Valkyrie must look to integrate with Sunshine products to improve communications and information sharing to combat inventory issues and spikes in customer demands. Due to increasing competition within the technical lighting industry, Valkyrie has the opportunity to expand its operations throughout two potentially lucrative markets. Valkyrie must analyze the Southeast Asian market and the European market; the two primary global opportunities. Both options have advantages and disadvantages; which Valkyrie must analyze to achieve global success. Our first recommendation is to establish a legal agreement with Sunshine Products to become our sole supplier. The second recommendation is to establish an integrated computer system between Valkyrie and Sunshine. Our final recommendation is to focus on entry into the European market through a third party contractor. These recommendations will allow Valkyrie to maximize its supply chain, effectively communicate between all supply members and expand its market share; while maintaining its core competency of producing aesthetically designed lighting products. Company Overview Valkyrie Lighting is a manufacturing company with operations mainly in North America. The company’s primary focus is the production and delivery of technologically advanced industrial lighting. Valkyrie Lighting operates in a supply chain with many tiers working together to create a product that serve a number of customers. The majority of their parts come from tier-one suppliers, such as Sunshine Products, that are sent to a manufacturing plant in Denver. In this plant, the products are assembled, stored, and delivered to customers who place orders. The tier-one suppliers contract the manufacturing of parts from tier-two suppliers that are located throughout the world; such as Sunshine Products who contracts in Taiwan. Valkyrie Lighting gained market share in the technical lighting industry due to integrating advanced technology which was superior to the competition.       This technology led to the creation of superior products and the abilityto create custom products that serve different customer needs. Valkyrie Lighting also held a competitive edge with the product design and looks that were more desired than that of the competition. This is currently Valkyrie Lighting’s main competitive edge in the industry. Valkyrie Lighting’s operations are based on a push system that follows forecasts which are revised every quarter. This push system has led the company to produce in batch processes. The constant demand from customers for unique designs requires that Valkyrie Lighting create a certain amount of one product, then switch to create another similar product with minor design differences. The type of operations performed at the Denver plant is completed in two stages. The first stage represents a repetitive operation because the core pieces of the product are assembled by workers to complete only the technical assembly. There are eight different basic assemblies that are created and then the product is moved to the second stage. The second stage is considered more intermittent because the basic assembled products are then finished to customer style preferences and is the source of the variety among customers. Once the product has been completed, the product is stored into stock located in the Denver plant and shipped based on customer orders. This operation represents a make-to-stock strategy where the product is produced based from forecasts; which are held as inventory until the customer demands a product. Valkyrie Lighting is in an industry that was highly competitive until a few major companies dominated the majority of the market. The technical lighting industry is a slow-growing market where the order winners are based on superior technology, product variety, and timely delivery. Pricing and customer service are important factors in maintaining the competitive edge along with having advanced technology. The main trend in this market is the moving away from standard designs and being flexible to create a number of products that serve different needs based from the customer. This is important for any company in this industry because the market consist of primarily of large buyers that could have a significant impact on the market share a company possesses. Currently Valkyrie and two other firms control the majority of the market share. The current market that Valkyrie Lighting operates in is the North American market. This is where Valkyrie operates strongly and is the most competitive. Other markets of interest include Europe, Southeast Asia, and Latin America. Each market has its own unique situations and barriers that affect Valkyrie Lighting. Currently, Valkyrie Lighting is taking advantage of the European market by exporting from the USA through a Dutch istributor, but future growth and market power will require manufacturing and distribution in Europe rather than exporting directly from the USA. The Southeast Asian market is difficult because of the strong competition among Asian companies and their ability to provide low costs, a core priority that Valkyrie cannot deliver at this time. The Latin American market is still untouched by Valkyrie Lighting and no long-term operation plans have been developed. Valkyrie Lighting has man y strengths with the current operation model. Their technology is strong enough that they can create a number of superior products and make custom changes to satisfy the customer demands. This is important because the market demands that companies have a wide variety of products to meet customer preferences. Another strength of Valkyrie Lighting is the aesthetics of their products. In the technical lighting industry, products need to be unique and Valkyrie Lighting achieved success by getting their products put into trade shows. This led to a strong following and more business. Another main strength for Valkyrie Lighting and their operation design is the make-to-stock. With customers demanding that companies hold products until orders are placed, Valkyrie Lighting continues to deliver customer satisfaction and is flexible. Despite some of the strengths of the current operations, Valkyrie Lighting’s current operation model contains many disadvantages. One of the biggest disadvantages is that the company is erratic with delivery times. Because the company continues to use a push system and quarterly forecast, they cannot handle on-time delivery for large orders or higher than expected orders from their larger customers. Valkyrie Lighting has tried to offset this problem by using the make-to-stock process, but this leads to the company holding onto large amounts of inventory that is costly to the company and uses space in the Denver plant. Another disadvantage Valkyrie Lighting faces is the lack of a standard line of communication among the different tiers of suppliers. The suppliers use different forecasts and rely on a push-system. Valkyrie Lighting utilizes a forecast that does not anticipate last-minute changes in demand and this leads to erratic delivery times to customers. Valkyrie’s communication technology is not compatible with its suppliers, which leads to a lack of closeness in communication. These issues affect the supply chain with suppliers running out of materials, Valkyrie Lighting not producing enough products, and customers waiting longer to receive orders. The last issue Valkyrie Lighting is faced with is penetrating new markets in different countries. With the lack of solid communication in the supply chain and the inability to deliver just-in-time, Valkyrie Lighting faces issues in setting up operations in Southeast Asia. Because the company does not directly operate in Asia, it cannot compete with the local firms that can provide products at a lower price. In Europe, Valkyrie Lighting understands their current operation is short-term. To continue to grow and expand market share; Valkyrie understands they must consider expansion into the global market. Current Problems: Although the business has been an industry leader and successful in the past, the Valkyrie management team is challenged to improve their supply chain management as they move forward. This project, supply chain management, is a new concept to Valkyrie. Although the management team has little experience in supply chain management, Rob Brown is confident that his team members are up for the challenge as they all have a stake in the survival and prosperity of the business. The team comes together in this project with various expertise and qualifications, which will allow them to face many challenges that are to come. These challenges range from decisions that will ultimately change Valkyrie’s way of doing business, and quite possibly even the entire technical lighting industry. This will require a new way of thinking and managing to remain successful as they move forward. Valkyrie is currently in a highly competitive industry where until recently there were very few major innovations. Valkyrie moved early to gain a competitive advantage. With this shift to improving their supply chain management, Valkyrie must act in the best interest of its stakeholders, which includes: owners, suppliers, manufacturers, vendors, employees, customers and the competition. Valkyrie must be methodical about the procedures it takes as they need to remain true to their core competency of providing superior technically advanced products with an aesthetic design, which is their top advantage over the competition. Before moving forward too quickly, Valkyrie must identify current problems and potential supply chain hindrances to minimize the frequency of false starts, fully utilize its capacities, and maximize productivity to ensure their product is still a viable and desirable choice for its end users. Major goals that Valkyrie seeks to achieve are to provide better delivery times to their customers, maintain well designed aesthetic products, and regain market share that has been lost due to price wars of the industry’s customers. There are three problems that Valkyrie needs to address initially in order to make their supply chain successful. The first problem Valkyrie must address is its current relationship with Sunshine Products. Sunshine plays a significant role in Valkyrie’s success because of its unique technology. Sunshine provides components to Valkyrie, but due to Sunshine’s production planning procedures, Valkyrie is unable to increase order quantities in fear that Sunshine is operating near capacity. Valkyrie and Sunshine’s current relationship is solid, but informal. Brown, as leader of this project, needs to identify that an informal relationship will hinder his attempts to make the supply chain management successful. Brown needs to look for ways to work jointly with Sunshine in hopes of making Sunshine their sole supplier. A sole supplier relationship will help Sunshine with inventory issues, inventory planning and production forecasts. In today’s business world, the internet is a very useful tool and virtually has very few limitations. Currently, Valkyrie and Sunshine do not have a compatible system, which hinders planning, inventories, and production plans. Both businesses plan production based on their inventory and production schedules, and Sunshine operates on a two-month planning horizon. This current system does not provide either company flexibility with production runs and prohibits them from accommodating spikes in product demand. If this is not resolved, the companies may experience the bull-whip effect and implore tactics that will lead to excess inventories. Valkyrie and Sunshine need to share an integrated system which allows visuals on both companies inventory and re-order points. By addressing the first two problems, Valkyrie will enable itself to take on its major competition by streamlining its components and production plans. To remain competitive, Valkyrie must improve lead times and flexibility to meet market demands. In addition, with the demand possibly stretching globally, Valkyrie needs to determine their expansion strategy based on which markets are most lucrative. The two possible markets that are promising to Valkyrie at this time are the European and Southeast Asia markets. By expanding to one or both of these markets, Valkyrie will be able to change its marketing and sales strategy from a push concept to a pull system due to the ability to fill orders upon the ever changing demands of their product. Valkyrie has alternatives to choose from to resolve these three major issues. By solving these issues first, Valkyrie sets itself up for success. Issue 1: Product Accessability To better understand the problem with Sunshine, we will first look at the present situation. Sunshine serves two other customers in non-competing fields other than Valkyrie and its production facility operates near capacity. The informal relationship between Valkyrie and Sunshine is sufficient when the two companies’ managers adhere to their hand-shake commitment and no competitor steps in. As Valkyrie loses ground in the U. S. market to its two major competitors, Valkyrie’s priority level in Sunshine may not remain if demand drops. Once the company engages in overseas production, Sunshine will not be able to manufacture the additional needed components under the current terms and Valkyrie may need to develop new suppliers. It is obvious continuing with the current informal handshake agreement is not an option for Valkyrie and Sunshine in the long run. In addition, as Valkyrie is exploring market expansion, this action will further necessitate an improved supply chain with Sunshine. Two possible solutions are: †¢ Alternative 1: Place a dedicated production line in Sunshine’s production plant. †¢ Alternative 2: Negotiate a formal contract with Sunshine and make it Valkyrie’s sole supplier. Both proposals will be analyzed in terms of feasibility, cost, and benefit in the section below. Alternative 1: Dedicated Production Line Proposal A dedicated production line proposal suggests Valkyrie place a dedicated production line in Sunshine’s facility. The production line will be provided by Sunshine and paid for by Valkyrie, as it will be exclusively used for Valkyrie’s production needs. The benefit of a dedicated production line is Valkyrie will have flexibility in its production planning and a just-in-time system can be implemented. The new line will provide extra capacity to satisfy Valkyrie’s increasing production need. Production equipment will not be a problem for the dedicated production line proposal since Sunshine either has enough room or it could expand its plant. All costs that occur during the setup of the production line will be covered by Valkyrie. The real problem is in the production and management of the dedicated line. Who should be responsible for the new line? How should wages and pricing be determined? If Sunshine were to provide the front line production workers and administration, they may charge a price premium. An agreement with Sunshine will need to be established for Valkryie to ensure the dedicated line in Sunshine’s facility will become the priority. Alternative 2: Formal Contract and sole supplier Proposal Compared to the dedicated production line, a formal contract is simpler and easier to implement. The contract needs to address the concept of sole supplier and the external factory. By creating a formal contractual relationship with Sunshine, Valkyrie guarantees Sunshine will be its sole supplier. In this contract, Sunshine will need to adjust its production planning procedure to make Valkyrie’s demand their first priority. A formal contract also builds up long-term relationship between the two companies rather than the two managers. With a formal contract, Sunshine becomes a guaranteed service provider. The benefit of such a relationship is information sharing, which is vital to the success of supply chain management. With an open information flow system, Sunshine can respond to production changes faster and reduce lead time. Another benefit of contractual agreement is it provides greater incentive for continuous quality improvement, which benefits both Valkyrie and Sunshine. The most important benefit of a formal contract is the elimination of uncertainty, the risk of losing a strategic partner. Recommendation The absence of a formal contract between Valkyrie and Sunshine places a huge risk on Valkyrie’s long-term success. With its unique technology, Sunshine plays a critical role in Valkyrie’s supply chain. It is clear that Valkyrie needs to include Sunshine in order to implement improvements in the supply chain. Considering both proposals’ pros and cons, we determine that a dedicated production line is neither feasible nor cost effective. The formal contract and external factory proposal fit into the supply chain management requirement and is much easier to implement. Thus, the formal contract and external factory proposal is recommended. Issue 2: The Lack of Computer Integration System Communication is the key to any business’s success. Due to Sunshine’s resistance to computer integration, both companies are experiencing communication problems. An integrated system will increase the productivity of the companies’ information systems, order entry and production system. Information Systems Information systems play a prominent role in any company’s supply chain. Valkyrie needs to share data, such as purchase orders, invoices, and payments, along with information about common information and financial records with all chain members. Sharing systems speeds up the flow of materials, payments and information. It allows companies to reduce the effort and cost of processing such transactions, and enables all members of the supply chain to know expected completion dates and availability of the products. Sharing a computer system allows all members to know when demand changes from the forecast. Any problems encountered that affect availability quantity or delivery time of the products allows the chain members to respond to problems and react to meet delivery commitments. Sharing information, analyzing market feedback and trends between chain members is critical to be successful in today’s dynamic global market. Order Entry Many companies and retailers are using Electronic Data Interchange (EDI) and/or Point-Of-Sale (POS) systems because it is very convenient for buyers and sellers. By using EDI, the form of computer-to-computer communication is standardized to share business documents such as invoices, purchase orders, shipping bills and product stocking numbers. This helps both buyers and sellers reduce logistical and labor costs and get products to market faster. For example, when suppliers transmit an advance shipment notice to the company for each inbound shipment, EDI systems can be effectively implemented. This notice provides a purchase order number, vendor identification number, product identification number and carton counts for each item in the shipment. The EDI data flows directly from the suppliers’ computers into companies and retailer’s warehouse management system. With this information, Valkyrie’s distribution center can anticipate inbound volume, prepare for receiving, and schedule the appropriate number of warehouse workers. EDI advanced shipment notification is sent from a shipper to a receiver with detailed information about the contents of the shipment. The process mentioned above also eliminates the need to schedule and stage the shipment later, which saves on labor costs. Through the EDI system, suppliers get paid accurately and on time. Furthermore, EDI can eliminate order batching. Companies typically use large order batching because of the relatively high cost of placing an order. Supply chain partners can reduce ordering cost by using electronic data interchange to transmit information. Lower ordering costs eliminate the need for batch order. Similarly, when the retailers use Point of Sale (POS) systems, the information collected by POS allows both Valkyrie and Sunshine to know the product demand information when making replenishment decisions. In addition, EDI and POS are very helpful to counteract the bullwhip effect of erratic replenishment of orders placed on different levels in the supply chain that have no apparent link to final customer demand, and as a result, manufacturers inventory does not coincide with demand. Production system By integrating the two companies’ computer systems and sharing relevant databases, Valkyrie and Sunshine Product can both benefit with a production system that determines what is needed, how much is needed and when it is needed. From Valkyrie’s standpoint, having its orders completed and shipped to the distribution center on time is the vital to maintain customer satisfaction and market share. From Sunshine’s view point, switching from traditional system-push system to a pull system would be a good strategy because it reduces inventory on production and materials. Thus, it helps Sunshine Product to solve the problem on material shortages or production planning system. The disadvantage of combining two companies’ computer system is that data exchange might create some problems in payment process or information flows between two companies. This computer integration also requires the internal consistency and discipline to ensure the process is integrated and information flows accuracy, otherwise it will create errors that bring problems to both companies in the short-run. Issue 3: The Entry to the Global Market At the core of Valkyrie’s global corporate strategy is the need to make a significant lucrative entry into the global market. Rapid expansion into a segment of the global market will make up for the mature market conditions in North America. Alternative 1: The Southeast Asian Market Southeast Asia is identified as a promising market but this market does not share the need for Valkryie’s unique, aesthetic design element. Valkryie’s technical lead is already being eroded boy Alpha products, leaving only the aesthetic design advantage which is not an order winner in Southeast Asia. Valkyrie has an opportunity to leverage the relationship with Sunshine’s established contract manufacturing in Taiwan. This liaison could transition into an opportunity to pursue moving into the Southeast Asia market. Valkyrie will have to establish its own communication and control systems to monitor their third party. They will need to monitor and evaluate the third party’s level of customer service, the efficiency of their operations and inventory investment. Alternative 2: The European Market. Valkyrie’s main competitive advantage is their design element known to be essential to market success in Europe. By moving into the European market, Valkyrie will be able to get a faster response to new customers, provide better service and increase market share. This solution requires learning about the European market and the European custom rules. Profits will be higher and Valkyrie will not suffer a loss of control which might result in poor market performance as opposed to simply licensing in Europe. This alternative helps overcome high fix cost and high tariff duties. A third party contractor will have a European market awareness of customer’s product needs and will be knowledgeable about the competition. The third party contractor would understand the customer service requirements which vary considerably from northern to southern Europe and will assume the responsibility for providing communications. A third party contractor can be counted on to know their local market’s suppliers capabilities and performance. As these other suppliers are less critical to Valkyrie’s success than Sunshine, they could be substituted if they do not perform to standards. Recommendation Our recommendation is for Valkyrie to establish local production, under Valkyrie’s name, by contracting with a third party to manufacture and distribute in Europe. The justification for choosing the European market is this market will require a unique styling of lighting products which is Valkyrie’s primary competitive advantage and core competency. This design element is essential to Valkyrie’s market success in the European market. The commitment to this strategic plan would negate an entry into the Asian market at this time. The third party contractor will need to be an experienced operator who can handle both the manufacturing and distribution. As Sunshine Products will be contractually bound as a single source supplier, their Taiwan plant will transmit orders electronically to the third party contractor who will work with regional suppliers to provide the remainder of the components. Factors to consider when identifying potential third party contractors will include: the company’s ability to partner with Sunshine Products, the ability to identify regional suppliers to provide the remainder of the component parts and the facility’s proximity to customers. The European single point distribution system will be essentially parallel to the US market. In order to meet product demand and service requirements Valkyrie knows that a single point distribution system and negotiating service contracts with carriers to provide distribution is effective. The company knows from experience at their Denver location that deliveries can be made to most major markets even by surface carriers. CONCLUSION: Valkyrie Lighting is venturing into new but potentially lucrative concepts. This new supply chain management will allow Valkyrie to remain competitive in the highly competitive technical lighting industry. By focusing on members of the supply chain, Valkyrie can utilize its resources to compliment its current strengths in creating better business relationships with its supply chain members. To ensure that Valkyrie succeeds in this new endeavor, there must be a formal contract between Valkyrie and Sunshine to ensure that Valkyrie’s demand will be met. Playing into the success is also the implementation of a integrated computer system between its supply chain members. This allows all members of the supply chain to readily see the inventories that are needed to sustain, while minimizing the bullwhip effect. Finally, Valkyrie must focus on its core competency, by manufacturing products that are preferred for the aesthetic design. This focus is one that suggests that expanding into the European market should be the sole focus at the current time. By following our three recommendations, Valkyrie will improve product accessibility, improve communications within the supply chain and increase market share with expansion into the European market.

Danone Governance Structure Essay

Board of Directors terdiri dari 14 anggota, dengan delapan diantaranya merupakan anggota independen yang dipilih melalui rekomendasi dari Nomination and Compensation Committee. Di dalam Board of Directors termasuk diantaranya Audit Committee, Social Responsibility Committee, dan Nomination and Compensation Committee. Anggota dari Board of Directors per Mei 2012, adalah: †¢Franck Riboud Chairman and Chief Executive Officer of Danone †¢Emmanuel Faber Vice-Chairman of the Board of Directors and Deputy General Manager †¢Bernard Hours Vice-Chairman of the Board of Directors and Deputy General Manager of Danone †¢Bruno Bonnell Chairman of Sorobot SAS †¢Richard Goblet d’Alviella Executive Chairman of Sofina SA †¢Yoshihiro Kawabata Senior Managing Director and Head of International Business Division of Yakult Honsha Co. , Ltd. †¢Jean Laurent Chairman of the Board of Directors of Fonciere des Regions †¢Benoit Potier Chairman and Chief Executive Officer of L’Air Liquide SA †¢Isabelle Seillier Chairman of J. P. Morgan for France †¢Jean-Michel Severino Managing Partner, â€Å"Investisseur and Partenaire Conseil† †¢Jacques Vincent Chairman of Compassionart †¢Jacques-Antoine Granjon Chairman and Chief Executive Officer of vente-privee. com †¢Mouna Sepehri Member of the Executive Committee, Executive Vice-President of RENAULT SAS †¢Virginia A. Stallings Professor of Pediatrics at Children’s Hospital of Philadelphia Secara umum, kami berpendapat bahwa Struktur Corporate Governance dari Danone adalah di bawah rata-rata. Posisi chairman dan CEO telah dijabat oleh Franck Riboud sejak 1996, dan struktur tersebut memberikan kekuatan yang terlalu besar bagi seorang individu. Lima director telah menjabat di Board of Directors selama kurang lebih 12 tahun. Menurut kami, posisi yang hampir permanen dari CEO dan beberapa director dapat menyebabkan hubungan yang nyaman antara mereka dan dapat berakibat pada hilangnya fungsi professional dari board. Misalnya, pada penentuan besaran kompensasi bagi para director sebesar 30% dari nilai saham. Hal tersebut dapat menjadi salah satu pertimbangan dari potential shareholders untuk mengurungkan niatnya menginvestasikan dananya ke Danone.