Bullwhip Effects in 7-Eleven Company

The Bullwhip Effect in Supply Chain
The supply chain is a complex group of companies that move goods from raw materials suppliers to finished goods retailers. These companies work together when meeting consumer demand for a product; supply chains allow companies to focus on their specific processes to maintain maximum probability. Unfortunately, supply chains may stumble when market conditions change and consumer demand shifts.
The bullwhip effect on the supply chain occurs when changes in consumer demand causes the companies in a supply chain to order more goods to meet the new demand. The bullwhip effect usually flows up the supply chain, starting with the retailer, wholesaler, distributor, manufacturer and then the raw materials supplier. This effect can be observed through most supply chains across several industries; it occurs because the demand for goods is based on demand forecasts from companies, rather than actual consumer demand.
The bullwhip effect is phenomenon observed in supply chains whereby unpredictable elements introduced by human behaviour in the lower part of the chain become more pronounced the higher up the chain they move. The effect is important because it is frequently the cause of serious inefficiencies that result from ordering too much or too little of a given product as links in the chain overreact to changes further downstream. The bullwhip effect is created by several factors. One is the fact that managers perceive demand differently at different points in the chain and order based on those perceptions. Other difficulties that play a role include ordering processes, price instability due to promotions and other factors, and problems related to intentional exaggeration of demand by customers due to shortages and the resulting cancellations when supply normalizes.
Forecasting Errors
When companies enter new products into the marketplace, they estimate the demand of the good based on current market conditions. Most companies in the supply order more than they can sell, attempting to prevent shortages and lost sales of goods. This "extra" inventory begins to increase or decrease during the normal market fluctuations of supply and demand. When demand increases, the companies closest to the consumer will increase inventory to meet the consumer demand. When the demand falls, the front-end of the supply chain will decrease inventory, amplifying the extra inventory on each company up the supply chain.
Behavioral Causes
One cause of the bullwhip effect is normally driven by management behavior at the front-end companies of the supply chain. Retail management never wants to have a stock-out on a popular good, leading to higher orders from the wholesalers. This eventually squeezes each company in the supply chain and creates decreases in inventory.

Another major behavioral effect is the ordering of too much inventory when consumer demand has fallen for an item. Retailers may have raised their inventory levels to avoid a stock-out but are now met with goods that cannot be sold quickly. This creates overstock of inventory for each supply chain company.

Operational Causes
The main operational cause of the bullwhip effect comes from individual demand forecasts from each company in the supply chain. This causes an increase in demand from companies in the supply chain, but not the actual consumers who will purchase the goods. A lack of communication is also prevalent during operational causes; companies may not supply information up the supply chain regarding current market conditions, causing improper levels of inventory.
Corrective Measures
To properly manage the fluctuations in consumer demand, implementing a point-of sale (POS) system with a just-in-time (JIT) inventory system. This allows each company in the supply chain to process information electronically regarding individual goods. Understanding consumer demand can then be evaluated based on the order information from the POS system and allow managers to order more goods if needed.

Example of Companies : 7-Eleven


Toyota just doing assembly work in factories only 20% of total employment, as well as Boeing's only 35% of the total job. The remaining work to create a subsystem, subassemblies and component done by suppliers and sub-contractors. Even the IT functions of both systems and maintenance is done by companies that are experts in the field of IT hardware and software. Toyota (especially in Japanese) earnestly implement supply chain management such as just in time and to encourage all vendors to meet demand from consumers. Thus today we can say that a car and plane is a result of inter-company collaboration.
They should make the process just in-time delivery
The word collaboration among several parties that reflect relationships deeper and more tightly than coordination. Coordination can be done in determining the schedule of arrival, planning and production decisions, targets and delivery schedules, and reduces the occurrence of lack of products (out of stock). In the supply chain management purpose of coordination is the attempt to stretch out the supply chain. Collaboration among several companies aiming to establish product design, product innovation, the creation of new products and inform each other to determine the forecasting (forecasting) and replenishment. The term CPFR (Collaborative, Planning, Forecasting and replenishment) was developed since 1997 by the organization that put the request in the field of logistics. Implementation of CPFR by the two companies resulted in savings in inventory levels and less out of stock at the Point of Sales (POS).
Examples of CPFR are applied by the giant retailer Wal-Mart with 100 suppliers in 2005 by using RFID technology (Radio Frequency Identification). This is assured by Wal-Mart that suppliers need information on demand at the retailer, price, number of stocks in the stores Wal-Mart in the condition as accurately as possible and in real time position. Wal-Mart also need information capacities suppliers, reserve stock suppliers, and order status.
7-Eleven, Inc. is the world’s largest operator, franchisor and licensor of convenience stores. Its company’s name was changed from The Southland Corporation to 7-Eleven, Inc. after approval by shareholders on April 28, 1999. 7-Eleven is also one of the nation's largest independent gasoline retailers.
Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling milk, bread and eggs as a convenience to customers.
The name 7-Eleven originated in 1946 when the stores were open from 7 a.m. to 11 p.m. Today, offering customers 24-hour convenience, seven days a week is the cornerstone of 7-Eleven's business.
7-Eleven focuses on meeting the needs of convenience oriented customers by providing a broad selection of fresh, high quality products and services at everyday fair prices, speedy transactions and a clean, safe and friendly shopping environment. Each store's selection of about 2,500 different products and services is tailored to meet the needs and preferences of local customers. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access.
Well known for the Big Gulp® fountain soft drink, Big Bite® grill items, the Slurpee® beverage and its fresh-brewed coffee, 7-Eleven’s food service offerings bring consumers a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods.
7-Eleven offers consumers a number of convenient services designed to meet the specific needs of individual neighborhoods, including automated money orders, automatic teller machines, phone cards and, where available, lottery tickets.
7-Eleven, Inc. is the world’s largest convenience retail chain. Based in Dallas, Texas, the company operates, franchises and licenses close to 7,100 stores in the U.S. and Canada. Of the 6,000 stores the company operates and franchises in the United States, more than 4,700 are franchised. 7-Eleven master franchisees, licensees and affiliates operate more than 32,000 7-Eleven and other convenience stores in countries including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Mexico, Singapore, Australia, Philippines, Indonesia, Norway, Sweden and Denmark.
7-eleven in Japan has been doing collaborations with suppliers of bread, so the 10 000 existing stores. Around Japan connected as a result of the server computer to connect with PPIC (Production, Planning and Inventory Control) suppliers. Bread can be made in accordance with market demand so that forecasting become more accurate.
Finally, whoever manages the company's organization in particular need to encourage the creation of a collaboration (derived from the Latin word "co" and "labor", which means to work together or to work together) among the companies that really need each other because they have one purpose, namely to meet the needs and consumer satisfaction . Collaboration with the support of the sharing of information, systems planning and development of new products together, as well as understanding the strengths and weaknesses of each company, will be able to cope with the bullwhip effect is the increased variability and uncertainty of the downstream (retailers) to upstream (supplier of raw materials) . All of the flow of raw materials, from downstream to upstream so it can be controlled (oversee) so be predicted well, except for natural disasters.

Costumer Relationship Management (CRM) of Johnson & Johnson Company

Johnson & Johnson :
Leading maker of health care products for consumers and hospitals
(About CRM on Its Website and Facebook)
Customer Relationship Management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.
Customer Relationship Management (CRM) is a type of management that specifically discusses the theories about the handling of the relationship between the company and its customers with the aim of increasing corporate value in the eyes of its customers.
The main goal of CRM is to improve long-term growth and profitability through a better understanding of the habits (behavior) customers. CRM aims to provide feedback that is more effective and better integration with the return on investment (ROI) in this area.
A CRM system should be able to perform the function:
 Identify the factors that are important to customers.
 Carry the philosophy of customer-oriented (customer centric)
 Adopt a measurement based on the customer's point of view
 Build a process end to end customer service
 Provide excellent customer support
 Dealing with complaints / customer complaints
 Take note of and follow all aspects of sales
 Create a holistic information about information services and sales from customers
Customer relationship management is a corporate-level strategy, which focuses on building and maintaining relationships with customers. Some software packages are available with different approaches to CRM. However, CRM is not technology itself, but it is a holistic approach to organizational philosophy, which emphasizes close relationships with customers. CRM care philosophy of the organization at all levels, including policies and processes, customer service, employee training, marketing, fund management and information systems. CRM system integrates marketing, sales, and customer service from end to end. CRM systems typically provides software and online tools for sales, costumer services, and marketing.
Nowadays, social media sites like Twitter, LinkedIn, and Facebook are amplifying the voice of people in the marketplace and are having profound and far-reaching effects on the ways in which people buy. Customers can now research companies online and then ask for recommendations through social media channels, making their buying decision without contacting the company.
People also use social media to share opinions and experiences on companies, products and services. As social media is not as widely moderated or censored as mainstream media, individuals can say anything they want about a company or brand, positive or negative.
Increasingly, companies are looking to gain access to these conversations and take a part in the dialogue. More than a few systems are now integrating to social networking sites. Social media promoters cite a number of business advantages, such as using online communities as a source of high-quality leads and a vehicle for crowd sourcing solutions to client-support problems. Companies can also leverage client stated habits and preferences to target their sales and marketing communications.
As explanations above, a company that implemented CRM is Johnson & Johnson (J&J).

Johnson & Johnson is the world's largest and most diverse manufacturer of health care products and services for the consumer, pharmaceutical, and medical devices and diagnostics markets. Made up of over 250 operating companies, Johnson & Johnson employs approximately 119,000 men and women in 57 countries and sell products throughout the world.
A way of J&J to implement CRM is by using their web site. We can find it on http://www.jnj.com/connect/?flash=true . On that site, we can find all about J&J Company, begin from it products, its caring, and its company, of course about its employees, careers, investors, news, partners, and contact. For the part of J&J caring, we can find about Company Initiative, Johnson & Johnson is involved with many causes and advertising campaigns that encourage healthy lifestyles and support those people who care for the health of others. In this part includes:
 Helping Moms and Children: An initiative dedicated to helping improve women and children’s health in the developing world.
 The Johnson & Johnson Campaign for Nursing’s Future: This U.S. initiative has championed the nursing profession and helped recruit and retain nurses. Follow Nursing Notes by Johnson & Johnson on Facebook
 Strength for Caring: This is a comprehensive online resource and community developed to help family caregivers care for their loved ones and themselves.
 Safe Kids Worldwide. Children die from accidents more than any other cause. We’re working to put an end to childhood injury and death.
 Because We Care, We Act. This advertising campaign currently running in China celebrates the unsung heroes who dedicate themselves to caring for others.
 Having a Baby Changes Everything. This campaign uses real moms and dads in real situations to celebrate the joys of parenthood.
View these videos on the Johnson & Johnson Health Channel on YouTube: JNJHealth
J&J uses Facebook and creates it page on Facebook. We can find it on page Johnson & Johnson Network. This page is for discussions about Johnson & Johnson. For this page have about 7.799 fans. This page contains wall—that the members can share on the wall, info, photo collections, you tube, links, notes, videos—of Johnson & Johnson Company. While community members can make comments, Johnson & Johnson reserves the right to remove those that are off-topic, abusive or that are spam. Product questions should be put to its companies. According to the page, we can find that this page has high intense, everyday it shares a post for the members. This page is for discussions about Johnson & Johnson and initiatives and projects the company is involved with. While J&J welcome community members to make comments, J&J reserves the right to remove those that are off-topic, abusive or intended to spam. That said, some comments may be forwarded to other people within the Johnson & Johnson Family of Companies for follow-up as appropriate.
This page is not intended as a forum for discussing products made by the Johnson & Johnson operating companies, including the reporting of side effects associated with the use of prescription medicines. As such, postings or comments that contain product discussions may be removed by the moderators of this page. Any questions specific to products made by any Johnson & Johnson company should be directed to the companies that sell them. A list of the products sold by our operating companies is available on the Johnson & Johnson website. http://www.jnj.com/connect/healthcare-products/. This page told us that please keep in mind that Johnson & Johnson and its operating companies work within highly regulated industries. Therefore, comments that pertain to legal matters or regulatory issues may be removed. The comments contained on this site come from members of the public, and do not necessarily reflect the views of Johnson & Johnson Services Inc. Johnson & Johnson Services Inc. does not endorse or approve of their content.
So for products especially we can find them on http://www.jnj.com/connect/healthcare-products/
For example, Johnson & Johnson Network shares about World AIDS Day 2010. “December 1st is World AIDS Day. In recognition of this important day we’ve posted this video to the Youtube Health Channel about our plant in East London, South Africa and our employees’ experiences of living with HIV/AIDS. Check it out below. What does World AIDS Day mean to you? Are you taking action in recognition of World AIDS Day”. Below that post we can find the comments or reserve by members. Visit http://www.facebook.com/pages/Johnson-Johnson-Network/126297030950 for more informations :)
Also in this page has a favourite page, Nursing Notes by Johnson & Johnson—as a J&J company initiative. Nursing Notes is a publication of the Johnson & Johnson Campaign for Nursing's Future. This page is informational and intended to engage with the nursing community. Visit http://www.facebook.com/jnjnursingnotes#!/jnjnursingnotes?v=app_7146470109  This page has about 3,728 people who like this.
The purpose of this page is to provide information to and engage with the nursing community about topics presented in Nursing Notes, a monthly newsletter produced by the Johnson & Johnson Campaign for Nursing's Future. The following content will be considered defamatory and slated for removal from the Nursing Notes Facebook Fan Page:
 Content that is damaging to the image or reputation of Johnson & Johnson, the Campaign or Nursing Notes
 Inaccurate, biased or abusive content, including derogatory statements about medical professionals, including doctors and nurses
 Posts containing profanity
 Comments that include medical advice or information on specific medical products
 Posts that advertise a product or a service
 Spam
 Off topic posts or comments not consistent with our Fan Page
Johnson & Johnson is not responsible for practices of any user on the page. This content is for informational purposes only and is not intended to be a substitute for professional medical advice. All user-generated content will be reviewed and may be removed if considered inappropriate.
Products:
Nursing Notes is a free monthly HTML newsletter produced by the Campaign. To subscribe, go to http://www.discovernursing.com/newsletter.

To contact the Campaign for Nursing's Future, visit https://www.discovernursing.com/contact-us.
Facebook Page:
http://www.facebook.com/jnjnursingnotes
Everyday, this page shares the post and the fans or members reserve it by comments and others. For example, one day a fan share this follows on the wall (names are covered);
CD : Hi everyone..Happy Holidays...I would like some input, opinions, or experiences with my concern. I am a Nursing student. This is my dream. Family is very important to me. I don't have children as of yet, but I am wondering with Nursing especially those working at hospitals are you able to spend time with your children?... Its a constant concern that I have..Thanks for reading & responding to my post..
This is one of the responses:
EGC : I work at UVA in Charlottesville, work a day/night rotating shift and I love it because my manager allows us to pretty much make our schedule around life......it is awesome. If you can figure out a schedule that works for you. Occasionally I have to fine tune my schedule according to my schedule and because there are always shifts to pick up and spots to fill......it is possible to enjoy time with your children and be there when you need to be. ;-))
On these pages, Johnson & Johnson also shares discussions with the members, makes the events, photos memory, shares the job vacations, and of course share its products and services. Like Johnson & Johnson Family of Companies touches more than a billion people’s lives each day through our health care products and services, it corporate giving and the volunteer efforts of it employees. It’s part of the daily rituals people follow to care for themselves and their families. It helps doctors and nurses, cares for patients, heals the sick and restores the joy of good health. And it support non-profit organizations throughout the world in advancing the health and well-being of those in need.
For more than 120 years, the desire of the people in J&J companies to make a difference has inspired every invention, every product, every breakthrough it has brought to human health. This commitment to serving the needs of others is guided by the Johnson & Johnson Credo.
On the website, we can contact Johnson & Johnson Company by the address
Main Office:
One Johnson & Johnson Plaza, New Brunswick, New Jersey 08933
(732) 524-0400
http://www.jnj.com
http://www.jnjbtw.com
http://www.kilmerhouse.com
http://www.youtube.com/jnjhealth
For information regarding the recent voluntary product recall, consumers should go to
www.mcneilproductrecall.com or call 1-888-222-6036 (Monday-Friday 8 a.m. to 8 p.m. Eastern Time)
Last, Johnson & Johnson Company said that: “Thank you for your interest in learning more about our company. We care about your questions and
concerns.”

IT Infrastructure : Hardware and Software (Review Chapter 4)

4.1 IT Infrastructure: Computer Hardware
Businesses require a wide variety of computing equipment, software, and communications capabilities simply to operate and solve basic business problems. Obviously, you need computers, and, as it turns out, a wide variety of computers are available, including desktops, laptops, and handhelds.
You will also need plenty of software. Each computer will require an operating system and a wide range of application software capable of dealing with spreadsheets, documents, and data files.

INFRASTRUCTURE COMPONENTS
Today’s IT infrastructure is composed of five major components: computer hardware, computer software, data management technology, networking and telecommunications technology, and technology services. These components must be coordinated each other.
 Computer Hardware
Computer hardware consists of technology for computer processing, data storage, input, and output.
 Computer Software
Include both systems software and application software. System software manages the resources and activities of the computer. Application software applies the computer to a specific task for and end user, such as processing an order or generating a mailing list.

 Data Management Technology
Data management software organizes, manages, and processes business data concerned with inventory, costumers, and vendors.

 Networking and Telecommunications Technology
Provides data, voice, and video connectivity to employees, costumers, and suppliers.

 Technology Services
Businesses need people to run and manage the other infrastructure components we have just described and to train employees in how to use these technologies for their work.

TYPES OF COMPUTERS
 Personal Computer (PC)
If we’re working alone or with a few other people in a small business, you’ll probably be using a desktop or laptop personal computer.
 Workstation
It which fits on a desktop but has more powerful mathematical and graphics-processing capabilities than PC.
 Server
Server computers are specifically optimized to support a computer network, enabling users to share files, software, peripheral devices (such as printers), or other network resources.
 Mainframe
Is a large-capacity, high-performance computer that can process large amounts of data very rapidly.
 Supercomputer
Is a specially designed and more sophisticated computer that is used for tasks requiring extremely rapid and complex calculations with thousands of variables, millions of measurements, and thousands of equations.
 Grid computing
Involves connecting geographically remote computers into a single network to crate a “virtual supercomputer” by combining the computational power of all computers on grid.

Computer Networks and Client/Server Computing
The use of multiple computer linked by a communications network for processing is called distributed processing. Centralized processing, in wich all processing is accomplished by one large central computer, is much less common.
One widely used form of distributed processing is client/server computing. Client/server computing splits processing between “clients” and serves”. The client is the user point of entry for the required function and is normally a desktop or laptop computer. The user generally interacts directly only with the client portion of the application. The server provides the client with services.
For istance, at the first level a Web server will serve a Web page to a client in response to a request for service. Web server software is responsible for locating and managing stored Web pages. If the client requests access to a corporate system( a product list or price information, for instance), the request is passed along to an application server.

STORAGE, INPUT, AND OUTPUT TECHNOLOGY
In addition to hardware for processing data, we will need technologies for data storage, and input and output. Storage and input and output devices are called peripheral devices beucause they are outside the main computer system unit.

Secondary Storage Technology
The principal storage technologies are:
1. Magnetic Disks: the most widely used storage medium today is the magnetic disk.
2. Optical Discs: these discs use laser technology to store large quantities of data, including sounds and images, in a highly compact form. They are available for both PCs and large computers.
3. Magnetic Tape: some companies still use magnetic tape, an older storage technology that is used for secondary storage of large quantities of data that are needed rapidly but not instantly. It store data sequentially and is relatively slow compared to the speed of other secondary storage media.
4. Storage Networking: large firm are turning to network-based storage technologies to deal with the complexity and cost of mushrooming storage requirement.

Input and Output Devices
Human beings interact with computer system largely through input and output devices. Input devices gather data and convert them into electronic form for use by the computer, whereas output devices display data after they have been processed.

CONTEMPORARY HARDWARE TRENDS
The exploding power of computer hardware and networking technology has dramatically changed how business organize their computing power, putting more of this power on networks. We look at this trends:
1. The emerging mobile digital platform
Mobile digital computing platform have emerged as alternatives to PCs and larger computers. Communication devices such as cell phones,and smartphones such as the iPhone and BlackBerry, have taken on many functions of handheld computers, including transmission of data, surfing the Web, transmitting e-mail and instant messages, displaying digital content, and exchanging data with internal corporate system.
2. Nanotechnology
Nanotechnology uses individual atoms and molecules to create computer chips and other devices that are thousands of times smaller than current technologies permit.
3. Cloud computing
Cloud computing refers to a model of computing in which firms and individuals obtain computing resources and software applications over the internet (also referred to as “the cloud”).
Cloud computing consists of three different types of services:
a. Cloud infrastructure as a services: customers use processing, storage, networking, and other computing resources from cloud service providers to run their information system.
b. Cloud platform as a service: customers use infrastructure and programming tools hosted by the service provider to develop their own applications.
c. Cloud software as a service: customers use software hosted by the vendor.

4. Autonomic computing
Autonomic computing is an industry-wide effort to develop system that can configure themselves, optimize and tune themselves, heal themselves when broken, and protect themselves from outside intruders and self-destruction. Imagine, for instance, a desktop PC that could know it was invaded by a computer virus.
Virtualization and multicore processors
Virtualization presents a set of computing resources(such as computing power or data storage) so that they can all be accessed in ways that are restricted by physical configuration or geographic location.

4.2 IT Infrastructure: Computer Soft Ware


OPERATING SYSTEM SOFTWARE

The system software that manages and controls the computer’s activities is called the operating system. Other system software consists of computer language translation programs that convert programming languages into machine language that can be understood by the computer and utility programs that perform common processing tasks, such as copying, sorting, or computing a square root.


APPLICATION SOFTWARE AND DESKTOP PRODUCTIVITY TOOLS

Today, business have access to an array of tools for developing their application software. This include traditional programming languages, fourth-generation languages, application software packages, and desktop productivity tools; software for developing Internet application; and software for enterprise integration. It is important to know wich software tools and programming languages are appropriate for the work your business wants to accomplish.

SOFTWARE FOR THE WEB: JAVA, AJAX, AND HTML
There are a number of software tools that business use to build Web sites and applications that run on the Web. Java and ajax are used for building applications that run on the Web, and HTML is used for creating Web pages.

Java is operating sytem independent, processor independent, object oriented programming language that has become a leading interactive programming environment for the web.

Ajax us another web development tective web creating interativ on the web technique wb application that prevent all of in this inconvience.

HTML is a page description a language for specipying how graphics, video, text and sound are placed on a web page.

WEB SERVICES

Web services refer to a set of loosely coupled software components that exchange information with each other using universal Web communication standards and languages.


SOFTWARE TRENDS

Today are many more sources for obtaining software and many more capabilities for users to create their own customized software applications. Expanding use of open source software and cloud –based software tools and services exemplify this trend.
Open Source Sofware is developed by a community of programmers around the world, who make their program avaibles to user under one several different licensing schemes.

Cloud- Basd Software Tools and Services Such as Microsoft Word or Adobe.1) Mashups is the resulting software application and Widgets are small software programs that can be added to web pages or place on the desktop to provide additional functionally.

4.3 Managing Hardware And Software Technology

Selection and use of computer hardware and software technology has a profound impact on business performance. The most important issues will be face when in managing hardware and software technology: capacity planning and scalability; determining the total cost of technology assets; determing whether to own and maintain your own hardware, software, and other infrastructure components or lease them from an external technology servie provider; and managing mobile platforms and software localization.

CAPACITY PLANNING AND SCALABILITY

Capacity Planning is the processof predicting when a computer hardware system becomes saturated and Scalability refers the ability of a computer, product, or system to expand to serve a large number of users without breaking down.


TOTAL COST OF OWNERSHIP (TCO) OF TECHNOLOGY ASSETS

TCO model can be used to analyze these direct and indirect costs to help determine the actual cost of owning the specific technology.


USING TECHNOLOGY SERVICE PROVIDERS

Outsourcing The maintenance of their IT infrastructure and development of new systems to external vendors.

Using Cloud Services , firms now have the option of maintaining their own IT infrasturture or using cloud based hardware and software services.

Managing Mobile Platforms, a large firm have many thousand of wireless devices to configure and monitor , similar to a desktop environment.


MANAGING SOFTWARE LOCALIZATION FOR GLOBAL BUSINESS

If you are operating a global company, all of management issues we have just described will be affected by the need to create systeme that can be realistically used by multiple business units different countries.

Strengthen Costumer and Supplier Intimacy : Automotive Industry Five Forces of Competition Model ( Chrysler and Toyota Corporation)

Threat of New Entrants
If we want to decide the strengthen costumer and supplier intimacy, we can use a tool : SWOT Analysis.

The threat of new entrants is very low in the automobile industry. The industry is very mature and it has successfully reached economies of scale. In order to compete in this industry a manufacture must be able to achieve economies of scale. For this to occur, manufacturers must mass-produce the automobiles so that they are affordable to the consumer. Another barrier to entry is that it takes an incredible amount of capital to manufacture the automobiles. It takes an extreme amount of capital not only to be able to manufacture the products but also to keep up with the research and development that is necessary for the innovation requirements. Access to distribution channels is another high barrier to entry. A company must find a dealership to sell their automobiles or have their own dealership. Space in the dealerships lots is very limited making it difficult to have a wider variety of inventory.

Bargaining Power of Suppliers

The bargaining power of suppliers is very low in the automobile industry. There are so many parts that are used to produce an automobile, that it takes many suppliers to accomplish this. When there are many suppliers in an industry, they do not have much power. There are so many suppliers to this industry; manufactures can easily switch to another supplier if it is necessary.

Bargaining Power of Buyers

The bargaining power of the buyers is moderately high. The buyers being consumers purchase almost all of the industries output. The manufacturers depend on them to stay in business. The buyers also are a significant portion of the industries revenue. If they can not keep their buyers happy then they risk losing them to their competitors. The buyers have low switching cost if they are not happy. All the buyer has to do is sell the car they own and purchase a new one. The reasons why the power is not completely high is that the buyers are not large and few in number. The buyers do not have the ability to integrate backwards into the industry. If they want a car then they have to purchase it from a dealership.

Threat of Substitute Products

There are not many substitute products for automobiles. Some of the substitutes are walking, riding bike or taking a train. Substitutes products all depend on the geographic location of the consumer. In some cities such as New York or Chicago, a car is not as necessary. In cities such as those, the subway is the most effective means of transportation. However, in most places a person must have access to an automobile in order to get around.

Intensity of Rivalry among Competitors

Rivalry among the competitors is very strong is this industry. The major competitors are so closely balanced that it increases the rivalry. In order to gain market share in the automobile must gain market share by taking it from their competitors. One of the other reasons there is such high rivalry is that there is a lack of differentiation opportunities. All the companies make cars, trucks or SUV's. The competitors are compared to one another constantly. The price, quality, durability, and many other aspects of different manufacturers are greatly taken into consideration when deciding what type of vehicle to purchase. When the different manufacturers advertise they even compare their products to their competitors. For example, the commercials will focus on areas where the company outperforms its competitors.


DamilerChrysler SWOT Analysis



As the number two auto manufacturer in total revenues DaimlerChrysler has positioned itself as an industry leader, with this come many strengths. The DaimlerChrysler umbrella covers many well-known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep. This means DaimlerChrysler has strong brands that are recognizable in almost every part of the world. Within these brands DaimlerChrysler also has wide variety of automobile products that span all price ranges and model types, from economy cars to luxury models. Brands such as Jeep are recognized worldwide for off-road and SUV vehicles, while Mercedes Benz is one of the highest quality luxury car makers in the industry. DaimlerChrysler is even represented in the realm of ultra luxury with its Maybach brand which competes directly with manufacturers such as Bentley and Rolls Royce.

In the arena of American car makers the Chrysler brand stands out as a leading innovator in vehicle design. Chrysler is well known for category breaking models such as the PT Cruiser and Plymouth Prowler. The Dodge Viper is a vehicle that broke away from the mold of other American sports cars to drive the imagination of car buyers, and increase the connection of style and image with DaimlerChrysler vehicles.

The merger of Chrysler and Daimler Benz which created DaimlerChrysler gave the company a large worldwide presence. This presence is a quality one because DaimlerChrysler is considered to be one of most respected companies worldwide according to a Financial Times survey of world corporate leaders. This presence is further increased by DaimlerChrysler's strategic partnership with Japanese car maker Mitsubishi. This partnership gives DaimlerChrysler presence in the Asian regions which is does not currently enjoy with its current stable of brands. This partnership will not only allow for greater product visibility for DaimlerChrysler in one of the largest automobile markets, but will also allow for sharing of technology between DaimlerChrysler and Mitsubishi.

DaimlerChrysler is currently a leader in hydrogen fuel cell technology. Hydrogen, considered to be the next big breakthrough in automobile engines, has the ability to revolutionize the industry. If or when this is the case DaimlerChrysler's commitment to research and development of the technology will help ensure the company remains on the top of the automotive world.

With all of the strengths that come with being a top auto manufacturer every company must also face weaknesses that can arise from the current business landscape and DaimlerChrysler is not immune to these shortcomings. As the automotive industry continues to move in the direction of globalization it is important for manufacturers to be strongly represented in all large and emerging world markets. Although DaimlerChrysler is well represented in the American and European markets they are not strongly represented in the Asian markets. DaimlerChrysler has no brands of its own that command significant market share in either the Japanese or emerging Chinese markets. DaimlerChrysler's partial stake in Mitsubishi was supposed to be an answer to this problem but current drops in Mitsubishi's market share accompanied by other problems has left DaimlerChrysler's future investments in Mitsubishi uncertain, and more importantly with no strong plan to compete in Asian markets.

Related to the problem of Asian representation is the reality that none of DaimlerChrysler's brands are truly marketable to worldwide consumers. Brands such as Dodge and Chrysler are strong in the US, but have had limited success in other markets. The Mercedes Benz brand is the most recognizable world wide, but as a luxury car maker it is harder to market to a majority of consumers in different markets. The Jeep brand is well known and respected throughout most markets, but its appeal is limited to the specialized group of SUV and off-road buyers.

The growing use of hybrid engines could also cause problems for DaimlerChrysler. There strategy to focus on the entirely new hydrogen technology has left them behind many other major manufacturers in the development of hybrid technology. As other major car companies are preparing to roll out hybrid options for many of there most popular models DaimlerChrysler does not plan to do the same anytime soon. By hitching there wagon to hydrogen power and not trying to capitalize on rising hybrid trends DaimlerChrysler could be missing out.

What has been billed as a merger between America's Chrysler and Germany's Daimler Benz has turned out to be more of an acquisition of Chrysler by Daimler Benz. The result is that most top managers of DaimlerChrysler are from Daimler Benz and many of the leaders of Chrysler choose to leave or retire. Many have speculated this "brain-drain" of Chrysler executives could hurt the innovative reputation of the American brands in DaimlerChrysler's portfolio of manufacturers. Much of the operations of DaimlerChrysler have also been moved to Germany where current wage rates and labor laws have made it hard for DaimlerChrysler to cut costs and bolster its bottom line.

With the evolution and changing environment of the Automotive industry DaimlerChrysler has many opportunities to increase its strengths and fix some weaknesses. With DaimlerChrysler's current shortage of Asian market share there Jeep brand could be a bright spot. With the growing trend of consumerism in China it is currently the fastest growing auto market in the world, and the Chinese desire for all things American could provide DaimlerChrysler with a golden opportunity. In Chinese surveys of the most sought after American brands in China, Jeep is in the top 5. DaimlerChrysler has also recently inked deals to build manufacturing plants for Mercedes Benz in Beijing, China. These recent developments provide DaimlerChrysler with more chances to push its products into a hugely coveted consumer market.

The decision to focus on hydrogen power research and development could also bode well for DaimlerChrysler if the current prices of oil and gas become a future standard. The high prices will help to put more focus and energy into viable fuel alternatives which could push the demand for hydrogen powered vehicles, as well as provide opportunities for government subsidies for continuing advancement of the technology. As a leader in hydrogen power DaimlerChrysler is poised to be a large benefactor of any of these scenarios.

Along with new opportunities come the inevitable threats and opportunity costs associated with any course of action which have the ability to affect DaimlerChrysler.

A current major threat is the shaky alliance between DaimlerChrysler and Mitsubishi. The current downturn of Mitsubishi has left DaimlerChrysler in a very vulnerable condition. If they continue in the partnership and hope Mitsubishi can pull out of its slump DaimlerChrysler could still face the consequences of not finding other ways to bolster presence in Asian markets even is Mitsubishi does right the ship. Even worse if Mitsubishi continues to flounder DaimlerChrysler may have to cut its losses and find itself even further behind other manufacturers in the race to sure up some of the largest auto markets in the world.

Another great threat is due to DaimlerChrysler's decision to put all its eggs into the hydrogen fuel basket. If the current trend of hybrid engines continues to catch on and grow throughout world markets DaimlerChrysler's reluctance to follow suit could cause loss of market share to rivals who offer better hybrid engines in more vehicle models. Even worse, if hydrogen proves not to be a viable energy source in the near future than DaimlerChrysler would not be able to profit from recent heavy investments in the technology and be faced with huge sunk and opportunity costs.

DaimlerChrysler has embarked upon a strategy of becoming a world wide leader in the automobile industry, representing all vehicle types across all world markets. This is summed up by DaimlerChrysler's four-pillar strategy. The four pillars include: Global presence, Strong Brands, Broad product range, and Technology leadership.

DaimlerChrysler, formed by a merger of the American Company Chrysler and the German Daimler Benz in 1998, was instrumental in the achievement of many of these pillars. DaimlerChrysler currently sells products in over 200 countries and manufacturing plants in 17. DaimlerChrysler also has headquarters covering all major geographic regions on every continent except Antarctica. After the merger DaimlerChrysler had ownership of several major car manufacturers with certain geographic presence. Daimler Benz was one of Europe's largest car manufacturers, while Chrysler was a leading American country. This gives DaimlerChrysler a large presence in two of the largest auto markets in the world. They also choose to purchase a 30 percent stake in the Japanese Mitsubishi Motors as a way to penetrate the Japanese markets. These three markets are the largest in the world and gives DaimlerChrysler a strong global presence.

DaimlerChrysler also wished to produce strong brands of automobiles with broad product ranges to be offered in these markets. DaimlerChrysler currently lays claim to passenger vehicle brands such as Chrysler, Dodge, Jeep, Mercedes, Maybach, and Smart. They also have ownership of Freightliner, which is one of the largest commercial truck producers in the world.

These brand names represent all vehicle types currently offered to consumers. From Dodge and Chryslers cars and trucks covering all price ranges and styles to Mercedes' and Maybach's representation in the luxury market. Even specialized vehicles are represented; Jeep is a top producer of off-road and SUV vehicles, while the smaller Smart brand produces economical urban vehicles for sale in Europe and the Freightliner brand gives DaimlerChrysler a strong share of the market in the commercial shipping and transportation.

In the arena of Technology leadership DaimlerChrysler boasts that it is a world leader in the development of hydrogen fuel cell powered automobiles. DaimlerChrysler hopes that its research into the new power technology will result in affordable vehicles powered by the alternative fuel source in the neat future. This Technology has the potential to be the next industry standard for engines and DaimlerChrysler is heavily invested in assuring that if or when it is they will be positioned to offer the best hydrogen engines available. They are also looking in the direction of cleaner, more efficient diesel engines as an alternative to hybrid technology. DaimlerChrysler believes that advances in diesel engines are superior to the improvements made by gas/electric hybrids currently offered by many competitors. DaimlerChrysler that strong research into these alternative power sources will facilitate their desire to be a technological leader in innovation among other companies in the automobile manufacturing industry.

Not all strategies are implemented seamlessly and DaimlerChryser is no exception to this. One of DaimlerChrysler's biggest current problems is its weak market penetration in Asia. While they do have a strategic partnership with Mitsubishi motors it is apparent that Mitsubishi isn't fulfilling the high expectations DaimlerChrysler expected. DaimlerChrysler is already on the right track with its plans to open manufacturing facilities in China, but a more immediate impact might be needed to ensure DaimlerChrysler doesn't fall behind in the region. A more immediate presence could be achieved through another strategic partner, specifically with one of the Korean builders Daewoo or Hyundai. Both companies have successful small car divisions, which are a need for DaimlerChrysler, and more importantly they come with distribution centers throughout the Asian market. Both companies have been recently seeking a large partner which provides an opportunity for DaimlerChrysler. The addition of a new Asian partner to the DaimlerChrysler stable can prove to be a great advantage through the immediate presence DaimlerChrysler could gain presence in the underrepresented Asian market, but it could also turn out to be a drawback. By taking on another acquisition or strategic partner DaimlerChrysler could face the same problems it is currently experiencing with Mitsubishi. By only being partners with another Asian firm DaimlerChrysler would not have ultimate control of the partner firm leaving more of a liability than if DaimlerChrysler opted to simply acquire of the company.

DaimlerChrysler could also hedge its bets on hydrogen engines by investing more in hybrid technology to provide more immediate returns. DaimlerChrysler's resistance to go ahead with full scale implementation of hybrid engines has come from a number of sources, most notably their focus on hydrogen and a belief that other fuels, such as diesel, may hold greater promise than hybrids. DaimlerChrysler believes that hybrid power is only an interim step until the before mentioned technologies are realized. Nevertheless, if DaimlerChrysler's assertions about the future of hydrogen power are incorrect they could face large consequences of not embracing hybrid engines. To fill this gap DaimlerChrysler could purchase plans for hybrid engines to hedge their bets of the upcoming market for more efficient fuels. Many manufacturers have begun licensing their hybrid technologies to other manufacturers, and while this isn't as good as DaimlerChrysler producing there own technology, it will allow them to introduce hybrid engines in there own models quicker and not lose precious market share to rivals. This would be an advantage for DaimlerChrysler because the promises of hydrogen power, while great, are still many years away and the use of hybrid engines and technology is growing exponentially in the present. However, DaimlerChrysler believes that more efficient Diesel technology is the better near-term solution t increase fuel economy. If Daimler were to follow the crowd into hybrid technology they could face a loss of investment in new diesel technologies that may well be a better answer than current hybrid technologies.

Toyota Motor Corporation SWOT Analysis



The Toyota Motor Corporation was incorporated in 1937 and has many strengths being one of the industry leaders in the automotive industry. Toyota has three major brands underneath the company umbrella; Toyota, Lexus, and Scion. By having these three distinct brands, it lets the company reach many sectors of the globe in a choice of vehicle for customers. They produce their vehicles and target specific global regions, such as the Carina E for the European segment (Amherst). Toyota has traditionally also been the leader in Total Quality Management or TQM. The belief that no process could ever be declared perfect, and that therefore there was always room for improvement was introduced by Toyota Sakichi (Financial Times). This brought about the Japanese word, Kaizen meaning continuous improvement (Financial Times). By using the Kaizen theory of continuous improvement, Japan caught up the U.S. auto makers during the 1980's (Financial Times). Toyota has also introduced it's newest hybrid power car, Toyota Pirus, at the 2003 New York Auto Show and hit the dealerships in the fall of 2004 (Toyota). In September of 2003, orders for the new and improved Pirus totaled 17,500 which is five times more then the company target of 3000 (MSNBC). With the price of gasoline and oil ever rising, this is a great market for Toyota to exploit.

Toyota does have some company traits that are portrayed as a weakness in the industry. The brand Toyota is not perceived as many to be prestigious (Amherst). Another perceived weakness is that it is in the top five of sales but not in the top five in dividend payouts or stock performance (Yahoo Finance). This may put up a red flag to investors around the globe that Toyota is not paying dividends as frequent or as efficiently as they should to their shareholder of the company. In Europe, the Lexus brand sold 18,206 vehicles last year compared with 509,720 BMW's. The reason for this is the Lexus brand lacks the diesel V-8 engine (Bloomberg). In certain European countries such as Belgium and Greece, diesels make up 90 percent of BMW sales in part to the tax subsidies the consumer receives (Bloomberg).

The opportunities for the Toyota Motor Company seem to be endless. Today, Toyota has passed the Ford Motor Company to become the world's second largest automaker in the world trailing only GM (Forbes). Toyota has also rounded out it's product line to suit the U.S. market with the redesigned passenger trucks and SUV, but they have also hit the market hard with eco-crazed society with the introduction of the second generation hybrid car, the Prius (Business week). The company is also being pushed in the right direction for opportunity with the strengthening of the Japanese Yen (Bloomberg). With the yen gaining strength and shifts in other world currency, the operating profits dropped during the April-June quarter by fifteen percent or seventy billion yen (Bloomberg). Because of the saving the company acquired in currency shifts, Toyota has extra money on hand to use possibly in R&D to improve on their vehicles or in several other areas causing great opportunities for the company. Toyota has doubled its market share in Europe in the past four years to 5.1 percent due to import restrictions being dropped in the 1990's (Bloomberg). The opening up of imports in the European market is a great opportunity for Toyota because that enables them to put their luxury line of automobiles Lexus, up against the European BMW and Mercedes Benz. Toyota is considering the idea of introducing a beefy three-quarter-ton pickup truck into the U.S. Market (Big News). This model would combat the Ford F-250 and the heavy-duty Chevy Silverado and these two pickups typically sell for more than $30,000 (Big News). If Toyota will decide to enter the heavy-duty truck market now it could be very profitable with construction, where the use of heavy-duty trucks are needed, booming all over the United States.

Threats to the Toyota Motor Company are an everyday occurrence. A major threat to Toyota is the Hyundai motor company. On average, Hyundai usually has thirty more horsepower in their vehicles, and costs around 3000 dollars less than a comparably segmented Toyota vehicle (Amherst). In the luxury line of Lexus, they are still losing ground to BMW in sedan sales and in SUV sales (Business week). Technology increases in cars today is a major driving force in the automobile industry, and if Toyota can't keep up with its other competitors, they could quickly lose market share in sectors they are involved in. The latest trend in the U.S. market is the eco-friendly vehicle that uses less gas and even more use of electronic power (MSNBC). Toyota has introduced the Prius hybrid vehicle, but Honda also is selling a hybrid car right now and Ford, GM and DaimlerChrlsyer have all announced plans for a soon release of their hybrid vehicles (MSNBC). If the Toyota Company can gain market share before the other big three release their hybrid, this won't become much of a threat, but if the Pirus does not fit consumer's needs in the hybrid sector, they will quickly switch and try the other products on the market.

The Toyota Motor Company has a slogan that is plastered across one of its assembly plant; Yoi kangae, yoi shina (Business week). That slogan translates to "Good thinking means good products", and that sums up what Toyota is all about as a company (Business week). There combination of speed and flexibility is world class with the 30 plants they have worldwide with some of them able to produce up to eight models of on the same line (Business week). Toyota also lives by the word Kaizen which translate into continuous improvement (Financial Times). Toyota introduced TQM and Kaizen to the world with the help of Edwards Demming to take the world by surprise and focus on quality and improvement constantly instead of just the bottom line and this focus has helped the Japanese company to become one of the leaders in the auto manufacturing industry (Financial Times).

Toyota, to be as profitable in the future as they are right now needs to keep their focus on the hybrid sector when selling in the U.S. market. Toyota has also launched a joint program with it's suppliers to drastically cut the number of steps it needs to make cars and car parts. Over the past year, the company chopped out 2.6 billion dollars out of its 113 billion dollar manufacturing costs without any plant closure of layoffs (Business week). They are also putting the finishing touches on a plan to create a more flexible manufacturing system. In this new plan, plants Indonesia to Argentina will be designed to make more customized cars that fit the demand in the local markets and Toyota believes that by doing this at their plants the can save 1 billion dollars normally needed to build a new factory (Business week). These are the recommendations that the Toyota Motor Company needs to take into consideration to keep their company moving in the right direction globally.

The advantage that Toyota would have by being the leader in the hybrid car sector is unknown right now. Nobody knows for a certain fact if the "green trend" will be a large factor in the future. In the U.S. market, it appears that having a marketable hybrid car in their line up of automobiles will be a good plan for Toyota in the future. The advantage of producing automobiles customized to a certain market is a good plan to keep a competitive advantage over the competitors in the same geographic region.

The hybrid car market could be a failure in the U.S. market and others in better technology increases before Toyota's Pirus begins to turn profits for the company. If this happens, Toyota could have a huge failure with all of the R&D and advertisement they have put into their new hybrid vehicle. Toyota also has an advantage over their customers today using the TQM model of operations. If the rest of the industry begins to implement this also, and Toyota fails to keep improving, this could prove to become a disadvantage for the company.

Michael Porter Strategy Model

Porter's Generic Strategies


Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, focus, and costumer and supplier intimacy. These strategies are applied at the business unit level. They are called generic strategies because they are not firm or industry dependent.

1. Cost Leadership Strategy
Firms that succeed in cost leadership often have the following internal strengths:
• Access to the capital required to make a significant investment in production assets; this investment represents a barrier to entry that many firms may not overcome.
• Skill in designing products for efficient manufacturing, for example, having a small component count to shorten the assembly process.
• High level of expertise in manufacturing process engineering.
• Efficient distribution channels.
Each generic strategy has its risks, including the low-cost strategy. For example, other firms may be able to lower their costs as well. As technology improves, the competition may be able to leapfrog the production capabilities, thus eliminating the competitive advantage. Additionally, several firms following a focus strategy and targeting various narrow markets may be able to achieve an even lower cost within their segments and as a group gain significant market share.
Description : Use information systems to produce products and services at a lower price than competitors while enhancing quality and level of services. Examples : Wal-Mart and Dell

2. Differentiation Strategy
A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition. Firms that succeed in a differentiation strategy often have the following internal strengths:
• Access to leading scientific research.
• Highly skilled and creative product development team.
• Strong sales team with the ability to successfully communicate the perceived strengths of the product.
• Corporate reputation for quality and innovation.
The risks associated with a differentiation strategy include imitation by competitors and changes in customer tastes. Additionally, various firms pursuing focus strategies may be able to achieve even greater differentiation in their market segments.
Description : Use information systems to differentiate products, and enavle new services and products. Examples : Google, eBay, Apple, Lands’ End
3. Focus Strategy
The focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. A firm using a focus strategy often enjoys a high degree of customer loyalty, and this entrenched loyalty discourages other firms from competing directly.
Firms that succeed in a focus strategy are able to tailor a broad range of product development strengths to a relatively narrow market segment that they know very well.
Some risks of focus strategies include imitation and changes in the target segments. Furthermore, it may be fairly easy for a broad-market cost leader to adapt its product in order to compete directly. Finally, other focusers may be able to carve out sub-segments that they can serve even better.
Description : Use information systems to enable a focused strategy on a single market niche; specialize
4. Strengthen Costumer and Supplier Intimacy


Description : Use the information systems to develop strong ties and loyalty with costumers and suppliers. Example : Toyota Corporation and Amazon.
For this site, I would like to give an example, Toyota Corporation.

A Combination of Generic Strategies
- Stuck in the Middle?
These generic strategies are not necessarily compatible with one another. If a firm attempts to achieve an advantage on all fronts, in this attempt it may achieve no advantage at all. For example, if a firm differentiates itself by supplying very high quality products, it risks undermining that quality if it seeks to become a cost leader. Even if the quality did not suffer, the firm would risk projecting a confusing image. For this reason, Michael Porter argued that to be successful over the long-term, a firm must select only one of these three generic strategies. Otherwise, with more than one single generic strategy the firm will be "stuck in the middle" and will not achieve a competitive advantage.
Porter argued that firms that are able to succeed at multiple strategies often do so by creating separate business units for each strategy. By separating the strategies into different units having different policies and even different cultures, a corporation is less likely to become "stuck in the middle."
However, there exists a viewpoint that a single generic strategy is not always best because within the same product customers often seek multi-dimensional satisfactions such as a combination of quality, style, convenience, and price. There have been cases in which high quality producers faithfully followed a single strategy and then suffered greatly when another firm entered the market with a lower-quality product that better met the overall needs of the customers.
Other Example for Implementation of analysis of Porter's theory on the PT. Ultrajaya Milk Industry & Trading Company Tbk.

1. Aspect of Buyers (Costumer)
Buyer (Consumer) from Ultrajaya Milk products covering all ages from young children, adolescents, and adults. Which is almost in consumption by all ages and Milk Products Ultrajaya can be enjoyed throughout the world.
Corporate Strategy Management:
• Good service so the buyer does not turn to another product
• Items with Price Low-quality and can be reached by all circles
• Promotion
• Gifts / Conducting Competition.
2. Aspect Suppliers
Each production process of a company requires an input in the form of raw materials, labor supplied by the Suppliers. Therefore the company should have a good relationship in the raw material suppliers in order to be fulfilled on time and more flexible payment system.
Corporate Strategy Management:
• Companies must have good relations on the relations
• Companies should be timely in payouts to its suppliers
3. Substitution (Product Differentiation)
Substitution of goods Ultrajaya Milk Products is
• Aqua
• Ice Tee
• Sosro Botol
• MIZONE
• And Others - Other
Manajemen Strategy
• Vendor must Convincing the customer that the product remains soft drinks Milk Ultrajaya No. 1 in the world
• maintain the quality of products and companies so their customers do not turn to another product
4. New Arrivals (New Entry)
Newcomers to the drink Ultrajaya Milk is like MIZONE, Pocari Sweet, and so forth,
Management Strategy:
• The company should have to apply the strategy Suatau Portee namely, Differentiation
• Price products cheaper than the new entrants.
• Loyalty Company To our consumers
5. Competitors
Management Strategy:
• The affordable price
• better quality
• Product Innovation
• Focus on one product that is soft drinks No. 1 in the World.

E-Government and Its Implementation in Indonesia (Ministry of Manpower and Transmigration of The Republic of Indonesia)

E-Government
The World Bank Group defined e-government as:
E-Government refers to the use by government agencies of information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government.
Other definition, Electronic government, or "e-government," is the process of transacting business between the public and government through the use of automated systems and the Internet network, more commonly referred to as the World Wide Web.
The technologies make governments on all levels are using internet technology to deliver information and services to citizens, employees, and business with which they work. E-government refers to the application of the internet and networking technologies to digitally enable government and public sector agencies' relationships with citizens, business, and other arms of government. In addition to improving delivery of government services, e-government can make government operations more efficient and also empower citizens by giving them easier access to information and the ability to network electronically with other citizens.

Governmental entities are constantly looking for new ways to serve their citizens in the most effective possible ways. To do so, on an internal level, highly efficient environments should exist in terms of processing application, project management and execution, performance management and operational evaluation, and more. If we were to consider the government as one entity and the rest of the components of society as another, the ideal interaction method would be to have a gateway of communication that is fully automated and to a large extent self-maintaining. For this purpose, and at the top of all government solutions provided, Net ways has developed an e-government portal framework based on the highest industry standards of usability, flexibility, and scalability.


Implementing an e-government portal with the above entities in mind would provide a multitude of benefits. For government, more efficiency would be provided in addition to better services, less errors, less storage space, revenue generation, job placement, cost reduction, time reduction, reduction of transportation, etc… From the citizen’s perspective the benefits would be less delay time, one-stop-shop, central data, less errors in forms filled, instant alerts and notifications, reduction of on site visits, multiple access channels, ICT awareness, and more. The business and investment community would benefit from easy registration, business opportunities and matching, e-procurement, secure timely payments, and streamlined and faster operations. Government employees would benefit from high information availability, faster communication, knowledge sharing, efficient HR services, e-banking, and more. International organizations would have access to accurate sector statistics, transparent and accountable processes, and better management of fiscal issues. Finally, educational institutions would make use of training and continuing education sessions, research investment, and job opportunities.

E-government implementation in Ministry of Manpower and Transmigration of The Republic of Indonesia

On this site, I would like to tell about one of implemented e-government in Indonesia, Ministry of Manpower and Transmigration of The Republic of Indonesia (Kementrerian Tenaga Kerja dan Transmigrasi Republik Indonesia). An Indonesian citizen can get many information about manpower and transmigration from this government web http://depnakertrans.go.id/



When we opened this web, we can choose the menu bar (available in Indonesian or English), these are include all about kemenakertrans, work unit, research, policy, rights and roles, public services, and so on. This web can be a tool to implement the government arm.
In addition,a citizen also can give his/her opinion about it, the ministry of manpower and transmigration also give contact services, so a citizen can full fill his/her name, email, comment, suggestion, recommendation about ministry.

I think it is a useful tool to make good connection for Indonesian citizen and government, by e-government. But in Indonesia e-government maybe doesn't work properly yet because information system like this can not accessed by poor people, so Indonesia should empower it citizen in order to get higher technology and get higher information from all parties, not only by newspaper, letter, or meet face to face with part government (it is difficult). So, with internet stay at home, open the website, we can look the performance of government by e-government media.

How to Make an Air Asia Online Booking

Nowadays, many steps for making online booking flights ticket, in this site, I give an example, Air Asia.
You should open your web and input the address : http://www.airasia.com/ and the screen is displayed. You can see some menus in the Airasia screen. On the left side you should choose Booking menu, u can make a booking, fill the search flights (include from origin-to destinations, depart, return, guest,child,infant). These data depend on your interest.

For example, I choose from Banda Aceh to Kuala Lumpur, one guest, no child and infant. I choose flights for November, 17 2010 and return in December, 6 2010. After you fill the list, click search, the cost will be displayed, for my example data, I will spend IDR 374.000 and for the return IDR 465.000 for regular, so I will spend IDR 914.000 because to return Banda Aceh, that's IDR 75.000 for airport charges and service.

These are easy example, but all data depend on your interest.In this step, you can manage the booking of yours. For the last step you should choose your spesial need if any, and click box confirmation, click continue and the next screen displayed, you must fill the guest details (title, first name, last name, address, country,handphone number, email, and so on), click next.
After this step, you must fill the personal details, passport details, and flight options,and then pick a seat (hot IDR 75.000 or standard IDR 15.000) click on the plane seat position, click confirm and continue. Click confirmation box of add ons (include Air Asia insure IDR 49.000, Sky Bus IDR 39.600 for go and return, Tune Talk IDR 16.000) if you want, then click continue. Finally, the screen of review and pay (summary of your cost) and payment applied of booking, choose Visa Credit Card or MasterCard, or Direct Debit (for Bank Mandiri and Bank Central Asia). And finally, Gift Vouchers are vouchers given AirAsia party in case of interruption or delay in flights longer than 2 hours. Usually the value of vouchers is not more than Rp. 500.000,- depending on the case at hand. If you have Gift Vouchers do not forget to use before you choose to use other payment methods. Because the voucher would cut the number of bills according to the value stated on the voucher. The validity of this voucher is 3 months.

You can choose one of that alternative, and If payment is made, the travel itinerary AirAsia will be sent to your email address. All you need to do is print it and show it at check it at the airport. You are required to show ID card / driving license / passport when you check in. for direct debit online payment displayed, fill the number, submit the payment and finally you make confirmation and itineray. Finish, you have done the booking Air Asia flight. Now everyone can fly :)

My Behaviors on One Day

1. Good Behavior
a. Make my mother happy (Insyaallah..) ; massaged my mother because she was very tired on her job in the house and also in the office, so I help her to clean house, cooking, wash the dishes, and so on
b. Helping my father to type something and others that he asked me because his job very heap
c. Keep smiling with other people at the college to make their heart happy
d. Attending the study of Al-Qur’an (halaqah) for fulfill knowledge of religion and also to fulfill the belief and god-fearing
e. Do some deed that care the orderliness such I didn’t throw away the rubbish everywhere to keep my environment clean. Because cleanliness is a part of iman (belief)
f. Keep wearing helmet when I went anywhere to keep safety
g. Giving a gift to my close friend to make her heart happy and keep our friendship

2. Bad Behavior
a. I felt so aggrieved when my Dad admonishing and advising me about my mistakes
b. Lying someone by phone ; when he/she asked that my parents at home or not, I lie him/her that my parents out, whereas they still at home
c. Jeering in my heart when I saw unbeautiful woman with dark skin who wear a fire-red dress
d. I neglected the time to make the some homework by watching TV and play the PS, and facebook, so when the examination come, I really confused
e. Spending the money for unimportant thing, like have lunch in the place that has expensive cost whereas after that I went home and have lunch again

Case 11.3 Giving and Spending the United Way

The United Way, which evolved from the local community chests of the 1920s, is a national organization that funnels funding to charities through a payroll deduction system. Ninety percent of all charitable payroll deductions in 1991 were for the United Way, this system however has been criticized as coercive. Bonuses, for example, were offered for archiving 100 percent employee participation. United Way system of spending also came under fire through the actions of William Aramony, president of the United Way from 1970 to 1992. During his tenure, United Way receipts grew from $ 787 million in 1970 to $ 3 billion in 1990.
In August 1992, the United Way board of director, to replace William Aramony at a salary of $ 195.000, with no perks. In September 1994, William Aramony and two other United Ways officers, including the chief financial officer, were indicated by a federal grand jury for conspiracy, mail fraud, and tax fraud. On April 3, 1995, Aramony was found guilty of twenty-five counts of fraud, conspiracy, and money laundering. Two other United Way executives were also convicted. By April 1998, donation levels were still not completely reinstated, but did increase (up 4.7 percent) for the first time since the 1992 Aramony crisis. United Way’s donation fell 11 percent since 1991 while overall charitable giving was up 9 percent. In January 2000, a federal district court judge awarded Mr. Aramony the full value of his deferred compensation plan, or $ 4.2 million. Judge Shira Scheindlin ruled in favor of Mr. Aramony because she said there was no clause for forfeiting the money if Mr. Aramony committed a felony. However, Judge Scheindlin also ruled that united Way could withhold $ 2.02 million of the amount due to cover salary, investigation costs, and interest on those amounts. Many in the nonprofit field say that the shadow of William Aramony looms over the nonprofit world.

Reading 10.1 The Fish Bowl Existence of Government

Pressure

In a government agency, the pressure can be political. For example, in Arizona, public perception about the efficacy of its Child Protective Services resulted in audits and reports and a political battle that saw the agency respond to 355 requests for information from the legislature. One audit report, using the figure of number of cases per case worker, concluded that case workers were overworked, a justification for more founds for the agency from the legislature. However, a follow-up analysis by an outsider found that the initial report included, in that per case number, cases that were actually closed. That initial number was deceptive, whether by accident or choice, and costs the agency credibility. The report was compiled during a period of intense public scrutiny and political pressure. Regardless of how anyone lands on the question of the agency, its efficacy and funding, the etical issue of honesty transcend all; do the numbers depict fairly and accurately the current status of the organization?

The same question was at the heart of all the corporate scandals. The answer was that the numbers had some footnotes, some qualifiers and caveats that were not included in the financial statements, but the numbers were released to the public. The reason is the sane, whether publicly-traded company or government agency : employes felt pressure to make the numbers do what they felt their superiors wanted them to do.

Conflicts

Conflicts from appointments and awards of contracts can develop through close connections between the board numbers and elected officials. For example, one city learned that one of the Business people serving on it citizen’s board for drug education was a partial owner, along with one of the city council members, of a drug education and rehab center that was awerded several citty contracts through the board’s approval. The citizens are often the watchdogs of government actions and when their role becomes intertwined with those who appoint them, that objectivy and supervisory roel is lost. Government agencies must step beyond statutory requirements and focus on vreating a culture of virtue ethics.

Case 9.13 Fast Food Liability

Ashley pelman, Roberta Pelman, Jazlen Bradly, and Israel Bradly brought suit against McDonald’s Corporation and several of its franchisees, alleging that in making and selling their products there have engaged in deception and that this deception has caused them to consume McDonald’s products to such an extent that they have injured their health. Their health problems include being overweight and diabetic. Three of them also have coronary heart disease, high blood pressure, and elevated cholesterol intake.
The following is an excerpt from the district court decision that dismissed the suit brought by the parents of the young people on their behalf.

As noted, the trial court dismissed the suit. However, the appellate court reversed the decision, and the case is now in the discovery and trial stage.

Case 8.14

A former executive assistant to coca-cola’s global brand director, joya Williams was sentenced to eight years in prison for her role in an attempt to sell confidential materials to pepsi. Working with Ibrahim Dimson and Edmund Duhaney, the three hatched a plan to make money by selling the confidential materials. A man named “Dirk” sent a letter to pepsi headquarters in May 2006 offering secrets for sale” included recipes for some coca-cola products and details of future promotions (these now bits were selling $ 15,000) as well as the formula for a new beverage ($75,000)

When Pepsi got the letter, it called coke, coke called the FBI, and the FBI set up a sting operation that included videotaping Ms Williams. Ms Williams was observed on the videotape putting the confidential materials, including bottles of prototype beverages identified by their eight-ounce size and plain white labels,into her personal handbag. Also as part of the sting operation, un undercover FBI agent met the infamous “Dirk” who turned out to the Dimson, on June 16 2006, at atlanta’s Hartsfield-jackson Airport. Dimson handed ober some of the documents and a beverage sample. The documents with the company logo, marked “Classified-Confidential” and “Classified-Highly restricted.” Coke later confirmed that these documents were valid and highly confidential and contained highly classified prop1.5 million. rietary information-in other words, trade secrets. The Undercover agent gave Dimson $30,000 in cash (in $50 and $100 bills) that was in a girl scout cookie box. The undercover agent told Dimson that the cash was a down payment with the remainder to come after the items were authenticated. The two then agreed that there would be more secrets coming for a total price of $ 1.5 million. According to FBiI press releases, Dimson later e-mailed the undercover agent the following.

After leaving , Dimson met in a rental car with Edmund Duhaney, and they drove to Duhaney’s home in a Deatur,Georgia. Call records showed that duhaney was in contact with Dimson and Williams on that day. Following these events, the Undercover agent arranged for a july 5, 2007 metng to transfer documents and$1.5 Million following that meeting, the three were arrested.

When news of the Arrets was made public, pepsi released a statement that included the following .”competition can be fierce, but must also be fair and legal.

William’s sentence in two years longer than prosecutors recommended because the federal judge, j owen Forrester, said, I can’t think of another case in 25 years that there’s been so much obstruction of justice.

The procsecutors indicated that Ms. Williams chose to go trial, a trial that lasted seven days, and that she lied on the stand. “Choices have consequences, and she made those choises Ms Williams testified that she had a habit of just “hording” company documents and e-mails. There was also, however, a recorded tape of her accomplies deciding how to divvy up the money among of three of them. The day after the girl scout cookie box handover, Ms Williams deposited $4000 into her checking account. She testified that the $4000 was a loan from a friend. However the friend did not testify. Duhaney created an account the next day in the name of Noblehouse Group,LLC, with the address used on the account being Duhaney’s Decatur recidence. Bizarrely, William’s residence was destroyed by fire in February 2007 within one hour following her conviction that same day.

Reading 6.1 A Primer on Accounting Issues and Ethics and Earnings Management

When Arthur Levitt was the chairman on his speech at New York University, he spoke about companies and their efforts to use earnings management, a process in which they use accounting rules and financial manipulations to meet the goals or make their earnings seem smooth. Mr. Levitt said that many corporate managers, auditors, and analyst are participants in the game of nods and winks.
Earning management has been business practice for so long, so often, and so many that businesspeople no longer see it as an ethical issue, but an accepted business practice. Fortune magazine has even offered a feature piece on the “how to’s” and the importance of doing it.
It remains an unassailable proposition, based on the financial research, that a firms’ stock price, attains a quality of stability of earnings management. However, the financial issues, in the decision of manage earnings are but one block in the decision tree. In focusing on that one block, firms are losing sight of the impact such activities of employees, employees’ conduct, and also eventually on the company and its shareholders.
Issues on financial reporting and earnings management are at the heart of the market transparency and trust. Understanding the issue of earnings management is very important as begin of study the cases.


The Tactics in Earnings Management
Earnings management consist of action by managers used to increase or decrease current reported earnings so as to create a favorable picture for either short term or long term economic profitability.
Also earnings management consists of activities by managers to meet or exceed earnings projections in order to increase the company’s stock value.
The methods for managing earnings are varied and limited only by managers’ creativity within the fluid of accounting rules. The common physical techniques that have been around since the beginning of the commerce are as follow; (1) write down the inventory, (2) write up inventory product development for profit target (3) record supplies or next year expenses ahead of schedule (4) delay the invoices (5) defer expenditures (6) sell all of excess assets
However, in his New York University speech, chairman Levitt noted five more transactional and sophisticated methods for earnings management, there are (1) large-charge restructuring (2) creative acquisition accounting (3) cookie jar reserves (4) materiality (5) revenue recognition (6) EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization) and Non GAAP (General Accepted Accounting Principles) on financial reporting.

Case 7.3 PwC and the Russian Tax Authorities

PriceWaterhouseCoopers (or known as PwC), on of the United States’ “Big 4” accounting firms, has had a tax practice in Russia since that country changed from communist rule. On of PwC’s clients in Russia was Yukos, a major Russian oil company that is now bankrupt.
Russia’s Federal Tax Service, has filed suit against PwC, alleging that it concealed tax evasion by Yukos for the years 2002-2004. The Tax Service also announced a criminal probe of PwC’s conduct with regard to its tax services for Yukos. Twenty Tax Service agents searched PwC’s offices in Moscow and questioned PwC’s employees about the Yukos account. Yuko’s lost its tax case, and has paid $9.2 million in charges for the nonpayment of taxes. However, Yukos and PwC do have the case on appeal.
Many see the battle between PwC and The Tax Service as a part of the Russian government’s ongoing battle to sell of the assets of Yukos and avoid the surrenders of the company’s assets to investor and creditors who have filed the claims. Some analysts believe that the Russian government is hoping to press PwC into revealing information that would help it take back the Yukos assets.
In PwC is found to have engaged in evasion, it loses its license to do the business in Russia, but if it turns over the information, it is likely to lose its clients in Russia.

Case 4.3.2 (Part Two) Boeing and the Employees Who Brought the Documents with Them

After the scandal of Boeing with Lockheed Martin (explained by my partner, Eka Yulianti), the CEO Philip Condit said that Boeing must and will live by the higher standards of ethical conduct. However, Condit departed abruptly on December 1, 2003. When Condit resigned, analysts, observers, employees, and others took stock of Boeing and had gone wrong. Engineer skills and ethics seemed to lose sway. As the culture of company deteriorated, Boeing missed strategic opportunity and shareholders were in revolt.
Since the time of the management shake-up and all the fallout from the documents and the defense employee recruitment, Boeing has repositioned itself and worked toward a culture change. However, the issues continue to arise. In April 2004, U.S Attorney’s Office expanded its investigation of The Lockheed Martin documents were used on NASA projects. The documents are different and involve different managers, but the pattern of abuse is same.
However, Boeing repositioned itself and refocused on its private jetliners business. As a result, Boeing has performed well. When former CEO Harry Stonecipher returned from retirement to reassume his role following Mr. Condit’s resignation, he told to business press that they are cleaning their company.
In 2005, Mr. Stonecipher was removed as CEO after the internal investigation revealed that he had had an affair with one of company executives. The affair was uncovered by an employee responsible for monitoring e-mails, and Mr. Stonecipher’s e-mails to the executive demonstrated not only an affair but also a poor judgment in the use of company e-mail. He had violated the provision of Boeing’s code of ethics; in conducting its business, integrity must underlie all company relationships, including those with costumers, suppliers, communities, and other employees. Employees will not engage in conduct or activity that may raise questions about company’s honesty, impartiality, reputation or otherwise cause embarrassment to the company.
These cases tell us that what a poor judgment impaired his ability to lead, Mr. Stonecipher. He violated his own judgment, that can’t gives good behavior for other employees.