Competing In The Global Arena Essay Example | Topics and Well Written Essays - 4250 words

Competing In The Global Arena - Essay Example Why is Apple holding so much cash Having too much cash in reserve might either mean that the company does not know yet how to allocate it or that they may have some risk concerns about future potential investment. Apple is obviously one of the handful of companies where the fortunes are seen to be intricately tied to the person in charge. The star excellence and the thinker talents linked by professionals Jobs are certainly contributed to the success of the company. So the news of Jobs' cancer surgery might lead to a succession problem and compromise the company's future. Apple achieved a solid performance for the first quarter of 2005 compared to the same quarter 2004 with strong net sales in the Americas segment (+77%) in Europe (+63%) and in Japan (+18%). The Americas segment represents approximately 47% of the company's total net sales. The increase in net sales in the Americas, Europe and Japan was primarily driven by increased demand of the iPod and the consumer-oriented iMAC (Apple Computer, Inc. (AAPL), 2006). Demand for the iBook products were especially high for the Americas, while peripherals and other hardware were more popular in Europe. The retail segment's net sales grew to $561 million as compared to $273 million in the same period in 2004, this represents a remarkable 105% increase. B. Strategic Posture Mission Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services (Environmental Health and Safety Policy Statement, 2006). Apple's Guiding Principles Meet or exceed all applicable environmental, health and safety requirements. Where laws and regulations do not provide adequate controls, Apple will adopt their own standards to protect human health and the environment (Apple and the Environment). Support and promote sound scientific principles and fiscally responsible public policy that enhance environmental quality, health and safety. Advocate the adoption of prudent environmental, health and safety principles and practices by their contractors, vendors and suppliers (Environmental Health and Safety Policy Statement, 2006). Communicate environmental, health and safety policies and programs to Apple employees and stakeholders. Design, manage and operate our facilities to maximize safety, promote energy efficiency and protect the environment. Strive to create products that are safe in their intended use, conserve energy and materials and prevent pollution throughout the product life cycle including design, manufacture, use and end-of-life management (Environmental Health and Safety Policy Statement, 2006). Ensure that all employees are aware of their role and responsibility to fulfill and sustain Apple's environmental, he

Conceptual Analysis 3 Essay Example | Topics and Well Written Essays - 1750 words

Conceptual Analysis 3 - Essay Example Sowa instigates that diagrams are simplified figures that convey intended message in a simple manner without using many words (John, 1984). In his work he describes several diagramming techniques that are very relevant in conveying messages in a simplified manner. There are many diagramming methods including flow charts, entity relationship, data-flow, and object oriented diagrams (John, 1984). This paper will analyze several diagramming techniques. Data-flow technique is a means of representing information or a system regardless of the level involved using symbols that show the flow of data, network of data, data processes and data stores. The main purpose of using data flow technique is to provide a systematic between users and system developers. Using data flow charts has a variety of advantages. The first advantage is that it reduces the amount of words that would have been used in explanation of the intended message. The second advantage is that data flow representation builds a systematic way of disseminating information. It shows the logical sequence of the data being represented. Thirdly, it represents the information in a hierarchical manner, showing every details of a system at any level. Fourthly, it is user friendly in that it allows users to understand the information being represented and gives the user an opportunity for review. They are diagrams used in object oriented models. They help in definition of machines that have a number of states. These machines receive events from external environment and the events drive the machine in rotation from one state to the other. This kind of diagramming technique helps in giving the explicit definition of a machine and its behavior. One feature that makes this technique unique is its ability to generalize states. This ability allows the factoring of common transitions. State models are suitable when describing

170D 20th Century China

170D 20th Century China Alice Locke The use of written language as a tool of communication is the most vital aspect of modern society. Almost everything deals with either our numerical or linguistic system to function, from the binary code running electronic devices to words directing traffic in a busy thoroughfare. Language exists to consistently and conveniently convey thought in an accessible medium. China faced, in the twilight of the Qing Dynasty, a crisis of identity where its people were scattered and divided as to how they were going to adapt their language towards their evolving needs. Jing Tsu, in his article, Chinese Scripts, Codes, and Typewriting Machines, delves into this issue, and elaborates on the struggles faced by intellectuals of the time as they attempted to reconfigure and reconstruct the chinese ideographic system for use in the modern era. Tsu argues that, The script revolution, which was often pushed into the background while bigger political events seized the stage of twentieth-century China, turned out to be the lasting one. It irreversibly augmented the global influence of the Chinese language, thereby opening up a new space for competition and co-option between the alphabetic and ideographic writing systems.1 Though the author then goes on to mention the obsolete nature of the identification of chinese script as ideographic, she maintains the distinction between the Chinese and western systems of writing. The core argument of this article is that while the late nineteenth and early twentieth centuries were a time of extraordinary social and political upheaval, the most lasting impact of this revolution was the alterations made to the Chinese script. The importance of this piece lies in its interpretations of the adaptations that contemporary intellectuals had to create to facilitate the Chinas transition into the modern era. Since antiquity, the Chinese writing system has been considered sacred, a divine writing system devised by the heavens, and for this reason, there had been a long held belief that any attempt to alter it would be sacrilege. In the face of such history, the intellectuals of the late Qing period were determined to produce a method of advancing their nations competency on the global level. Giving a disclaimer, the author chooses to focus neither on the interactions of languages nor the potential appropriations that they made on one another, attributing these assertions to scholarly articles.2 [120]Though these issues are intrinsic to the grand scale, they can be put aside for a more indepth look at a particular movement in history. The logographic text was used as a cultural standard establishing Chinas cultural prestige, but now it was becoming an issue, the complexity of the script made it very difficult for average people to have significant access. This in turn largely contributed t o the low rate of literacy in the population at the time, and more importantly, made writings very difficult to mass produce. Seeing this increasing divide between the current utility of the language and the increasing need for unavailable modes of communication, Chinese script writers put their life on the line to modernize their language, and to adapt it for a modern world focused on the maths and sciences.3 [120] At the onset of this literary revolution, the government was largely still favoring the antiquated system that had been used for centuries, unlike the intellectuals, the government was more concerned with the traditional thoughts of the script being handed down from the heavens, than recognizing a need to ingrain itself into the new world forming around it. Tsu then goes on to note an argument published by the Cambridge University Press, that establishes language as the basic method of argumentation and explanation.4 [121] This argument, presented as another scholarly ar ticle, establishes the basis of language and shows that even though different language system can have the same basis, they might not lead the people to the same ideologies. This illustrates the divide between eastern and western philosophies, not as a vast intellectual difference, but rather as a systematic lack of infrastructure to support varying logics. As a result of China being surpassed in technological and scientific disciplines, Chinese contemporaries looked towards the west for ideas to incorporate into their script revolution. These revolutionaries would incorporate various methods of writing from the west and Japan in order to better prepare the Chinese writing system for use in the modern scientific era. Many of these intellectuals experimented with Isaac Pitmans phonography in order to attempt to create a shorthand method of expressing Chinese while maintaining the general style of the system. Reverend Alexander Gregory created and published a possible version of shorthand Chinese in the Phonetic Journal which influenced and inspired others interested in the area to use his example as a basis for a modern Chinese shorthand.5 [130] The Phonetic Journal was a scholarly collection of works submitted, through this medium, ideas both simple and complicated could be examined and distributed by people throughout the globe. By see ing this example, intellectuals would not only have been given inspiration how to go about the revolution, but also a reminder of how their proposed script could be used to spread knowledge. Indeed, many of the proposed scripts came with an example, something recognizable that was translated into the shorthand that the author was attempting to establish. Tsu describes that each author had various motivations for their attempt at the creation of a simplified Chinese script, missionaries attempted to use it as a tool to better attract converts, intellectuals sought a better method of disseminating information, scientists wanted a better method of noting data, the Chinese people wanted an improvement to their writing system and many believed that shorthand was the best mode of revolution at the time.6 [131] The revolution continued to garner support, and quickly became a global endeavour, with contributions from as far away as Glasgow.7 [131] These publications taken from various scholarly journals were used to demonstrate the scope and nature of the early script revolution. Unfortunately though, the vast majority of the proposed scripts ran into similar problems, in essence they were too complicated and failed to meet the initial expectations of being easier to learn.8 [132] The creator of each script as well as those around him were able to grasp the concept without much effort, as intended, but the further away from himself that the creator got, it became a growingly difficult material to teach. Those that adopted the system early could adapt to the added rules and subtleties, but the systems became too complicated to be useful as shorthand.9 [134] Every language is complicated, with millennia of small changes that have led to vast differences between dialects, Chinese in the north i s a vastly different language than in the south, similar to comparing French and Italian, grammar and pronunciation rules are so different that trying to create a generic system for both languages would be extremely difficult. While both French and Italian use an alphabetical basis for their script, each has its own special characters, along with having pronunciation of similar strings of characters vastly differ, even within their own language. The greatest mistake of these script writers was to attempt to unify the script of the nation without unify the language of the nation. From the start, their approach was doomed to fail as they lacked the vision for scale, they created systems adapted for their personal needs at the time, but were unable to cater to the population as a whole. The failings of these early reformers would grow into a new era of reform in Chinese script. Tsu maintains that the window of opportunity was far too short for these radical shorthand methods to gain popularity and the gradual reform necessary to incorporate such system.10 [135] The debate for the path of the modern language reached the height of debate during these early years of the republic. It still wasnt entirely clear which direction the country was headed linguistically, with some called for a Han Script Revolution,11 [138] among other controversies that set the stage for a leap into typography. Lin Yutang, a chinese writer and pioneer in typography, set out to create a typewriter that would allow him along with millions of others to quickly and efficiently type in the Chinese script.12 [135] Lin is hailed as great writer of this time period, but his contributions towards typography are generally not mentioned, even though his machine served as a basis for many of the multilin gual and chinese-language typewriters.13 [137] The two main forms of script revolution revolved around either alphabetization or the simplifying of stroke order; Lin argued that these two concepts were not mutually exclusive, that both could be sued in conjunction to create a modern Chinese script.14 [138] This ideal published in the Princeton University Press, would serve as Lins basis for creating his system of typography. Lin experimented with and studied various models proposed by other linguists at the time, but he found that they were too complicated for the average person, that while work in theory, they failed in practice as the shorthand revolution had decades ago. Lins goal was to create a system that was accessible to the average user, one that was both aesthetically pleasing, as well as functional in purpose.15 [140] Finally, in 1924, he devised his own system which became the cornerstone of the indexical system for his typewriter.16 [140] These notions and discoveries w ere written in an autobiographical format by Lin later in his life, detailing his endeavors as he sought to create a typographical system accessible to everyday people. For this purpose, Lin created a system of alphabetically locating Chinese words based on stroke order rather than phonetic pronunciations. The first stroke of the character was used as the primary reference point, with each subsequent stroke being used to further narrow the search in a sort of alphabetical manner.This differed greatly from the traditional Reverse Cut which used the final, and usually most visible, stroke to classify characters.In this manner, Lin was able to organize the characters in a manner akin to aa, ab, ac, etc. which allowed him to organize his typewriter in the same fashion.17 [141-2] Lins system dismantled the arguments of alphabetic superiority by creating a system that functioned in a similar way using traditional Chinese characters. By figuring out a new mode of accommodating and assimilating alphabetic languages, Lin fused what he though was the best feature of both languages.18 [142] The keyboard of the machine displayed Chinese radicals and not latin characters which had previously antagonized critics of this format.19 [142] Lin detailed how his typewriter would accept input and then produce a selection of characters that would then be chosen by the author of the piece. He had finally created a method to distribute the Chinese language en masse. Indeed, he succeeded at his original goal in theory, but in practice, Lin faced entirely different problems than his predecessors. The simple fact of the matter was that it cost too much to produce. In order to facilitate the complexity of the machine, Lin was forced to order many specialized parts that increased the overhead cost above what was acceptable, to about $1000 per machine. This led to Lin selling the patent to the Mergenthaler corporation in 1951.20 [143] From this point onward, Lin was uninvolved in the legacy of his typewriter. At this point, Tsu switches from referencing Lins personal memoirs and delves into news reports and articles in magazines such as Scientific American to find information about the legacy of the Lins typewriter in modern computing. The patents made their way to IBM and were processed into what became the sinowriter. This machine was the ideal that Lin was unable to meet, it was an inexpensive typewriter that could easily be accessed, even by peopl e that werent able to understand Chinese themselves.21 [145] The ideal of the script revolution that began over half a century ago had been realized. From this point, the sinowriter would undergo several more upgrades which increased its functionalities, but the basic ideal stayed the same. The Chinese script had finally gained an effective recording technique it could use in the modern era. China gained linguistic independence with the creation of effective writing tools in the twentieth century. The script revolution began in the last days of the Qing Dynasty and continued worldwide throughout the length of the twentieth century. The first reforms were blinded by the notions that the script was inferior to western alphabets and only sought to create a shorthand method to supersede the traditional language. This conflicted with the very nature of Chinese society and faded into unpopularity quickly with the rise of typographic machines. A new struggle emerged with the primary focus being the effective translation of Chinese from a written to a printed text. Lin Yutang successfully overcame this enormous obstacle, before allowing others to refine his his invention into a more practical form. The work and effort of thousands of people worldwide is what allowed the sinowriter to become the first easily mass producible method of scripting the Chinese language. Jing Tsu detai ls the events and circumstances that led to the creation of the sinowriter primarily using scholarly articles from both modernity and contemporary sources. With the exception of Lins personal testimonials, Tsu sticks to using verifiable articles to establish an academic atmosphere for the article. The specifics of the accounts of newer sources might differ from what they were originally, but being scholarly articles, they maintain a high standard for their information. The core of the article dictates Chinas struggle towards finding a writing system befitting its entrance into the global stage.

Ethics Can Make the Difference Essay examples -- Morals Management Job

Ethics Can Make the Difference Ethics are â€Å"rules or standards that govern the conduct of members of a group† (Roland). In every work environment there are a predetermined set of ethical standards the company has put forth for its employees to abide by. But in the technologically fast paced world of today, the lines of what is ethical and unethical blurs easily. While some will argue that any information that is accessible should be able to be read by anyone looking for it, others will argue that just because the information exists on a computer somewhere does not mean it is open territory for all. So how do companies draw the line between what is right and wrong, between who sees what information, and what information should be posted? They create a set of ethical guidelines. Ethical guidelines are the set of ethics a company will publish for its employees informing them of moral standards the company expects them to uphold. Depending upon the type of company and the various departments in the company various ethical standards can be emphasized. In the broadest terms an ethical guideline usually includes standards about integrity, objectiveness, independence, and confidentiality. Integrity refers to being honest about your job and the work that you do (Needles, Powers 30). In the information systems environment this can mean being truthful about information obtained or presented to other employees, managers, and the public. For example, it would be unethical to publish false information about a client or even something such as false financial statements published on the Internet. In the most basic sense, an employee should provide the most factual and supportive information... ...l Accounting. 8th ed. Boston: Houghton Mifflin Company. 2000 McNamara, Carter. Complete Guide to Ethics Management: An Ethics Toolkit for Managers. 12 March 2005 . O’Brien, James. Management Information Systems. 6th ed. Boston: Irwin. 2004 Roland, Craig. Ethics and Computers: Implications for Teaching Art. 14 March 2005 . Smart Pros Editorial Staff. Ethics Experts Say Boeing Did the Right Thing. 14 March 2005 Links to Works Cited: New CIO Brings Financial Integrity to Freddie Mac Panel Says New Jersey Needs an Ethics Overhaul Complete Guide to Ethics Management: An Ethics Toolkit for Managers Ethics and Computers: Implications for Teaching Art Ethics Expert Say Boeing Did the Right Thing

Discrimination against people with HIV at work

Monday morning was the best time of the week for mike for he loved going to work which could not be said for most of his colleagues. Mike had wanted to be a system analyst all his life and though he had been working at Mercury Star for four and a half years. He came into the office with the drive, sense of excitement, enthusiasm and expectation that an 8 year old boy had when his dad took him to get his first bicycle.His daily routine involved; getting into the office at least thirty minutes early so as to have enough time to settle in, review the previous day’s work and establish what would be his workload for the day. The first thing he did was to sit and admire the two beautiful, polished glass trophies which sat on the table on the left side of the room next to the picture of his girlfriend. These trophies were the reward for his hard earned success as he had been the firm’s employee of the year for the last two consecutive years.It was unusual for a 28 year old to have achieved that kind of success in such a short time as mike had already been promoted to a managerial post. Mike was a respected man in his work place and his employees looked up to him and some even pegged him as they guy who will be a Chief Executive Officer by the time he was 35. though he downplayed this remarks he always felt that he had the potential and after wining his second employee of the year award that became his new ambition. Within just four years he had become the one of the best system analysts in the city.Mike had his whole future planned out, how he would propose to his long time girlfriend by the end of the year, he was in the middle of negotiating a mortgage with the local bank and he was paying the last installment on his BMW M9. He even drew up a plan in which he planned to work extra so that he would be able to go into retirement by the age of 40 and set up a system analysis consultancy firm within the city (Geoffrey 23). His position in the office came w ith a health insurance package which until this time Mike had never used it.But on this Monday morning Mike felt different he felt like he was coming up with flu so after he reported to work he took the day off to go and see his doctor which was unusual as Mike rarely got sick. The doctor at first was not able to tell what was wrong with him so he ran some tests. When Mike came to see the doctor late in the afternoon the news that doctor gave him made him feel like his life had just been pulled right from under his feet. The words â€Å"I’m sorry Mike but you are HIV positive† keep ringing in his head.Mike did not even hear what the doctor said for next few minutes as he tried to let the news sink in. The medical cover policy had a condition that when an employee visits the firm’s doctor, he had to furnish the management with a complete report of the doctor’s examination. Mike went back to work after three days and tried to act like nothing had happened. But however much he tried he could not shake off what the doctor had told him he couldn’t and on this particular day he got to work late which had never happened.A soon as got to the office he was informed that the boss wanted to see him. When he got into his office, the boss offered him a sit and for the next fifteen minutes he went on and on how Mike was an excellent employ but what happened after that Mike would never have contemplated. The boss told him that the board had discussed on the medical report and had come to the conclusion to let him go. It was at this point that he truly felt his world come crumble and all his dreams and ambitions came tumbling down. What and end to a brilliant young man’s career. Discrimination against People with HIV at Work A salesman representative is terminated from his job when he was diagnosed as HIV positive. He was about to complete the six months requirement in order to become a regular employee but he was terminated under the dubious excuse of â€Å"grave misconduct†. But the real cause of his termination is his health condition, specifically, being positive on HIV or AIDS. The Acquired Immunodeficiency Syndrome, more commonly known as AIDS, is caused by the HIV or the Human Immunodeficiency Virus. The virus impairs the body’s defenses or immune system and leaves the body vulnerable to various serious and fatal illnesses (â€Å"AIDS and the Workplace†, 1992).People with HIV infection are living like normal people. They are able to perform well in their community and in their workplace environment. But still, discrimination against people with HIV is still prevalent in some areas, especially in the workplace. The United Nations campaigns for the ban of prejudice against peopl e with HIV/AIDS. Secretary General Ban Ki-moon called for worldwide efforts in battling not only the disease but the discrimination that is also widespread (â€Å"Ban urges end to Prejudice against People Living with HIV/AIDS†, 2008).Companies should address issues that are related to HIV/AIDS by enhancing a non-discriminatory workplace environment and by providing education regarding the frequently asked questions on AIDS. For the workplace environment that has an increased risk in blood exchange, the company should apply a control program in order to monitor and regulate the activities in the workplace (â€Å"AIDS and the Workplace†, 1992). People infected with HIV have the capacity to live normally in the society. And as such, we must not deprive the infected people with AIDS to do their tasks and participate and socialize with the other members of the society.

Bidvest Corporate strategy Essay

1. Executive Summary Bidvest is a South Africa-based distribution services and trading business and the largest foodservice business outside North America. The group is active in freight management, outsourced services, industrial and commercial products and services, printing, packaging closures, stationery, office products, corporate travel and automotive retailing. Bidvest is listed on the Johannesburg Stock Exchange, with over 105,000 employees on four continents. http://en.wikipedia.org/wiki/Bidvest_Group .The group is also highly debt-averse – a position it is able to maintain through its ability to generate cash. This assignment firstly provides an introduction into who is Bidvest and provides a broad and critical evaluation of Bidvest strategy. The group used approach that evaluated Bidvest started with highlighting the key success factors of Bidvest. Secondly we used the two competitiveness models, firstly the generic business strategies which are also supported by Porter for possible use in adoption to gain competitive advantage model and Porter’s diamond model. From investor perspective Bidvest shares are very appealing for their stability and or growth and for anyone who is in the market for a job, they will not go wrong with Bidvest. Lastly any small innovative struggling company out there who would like to will like to be on the shoulders of a giant they should not look elsewhere. 2. Introduction The Bidvest Group started as an idea to raise capital to acquire, fix and develop underperforming services business by Brian Joffe. Joffe consolidated what was a highly fragmented support services sector and created the enabling working conditions for people to enjoy their work and flourish. It started with the acquisition of Chipkins Catering Supplies in 1988 Bidvest was founded by Mervyn Chipkin and Brian Joffe in 1988 via an R8 million cash shell (a little over US$1 million in 2011 rands). The shell was a fast-track to a 1989 stock exchange listing. The next acquisition was the purchase of Sea World frozen foods. Bidvest listed on the JSE and its appetite for acquisitions has been insatiable ever since. Since then, Bidvest acquired a range of companies in diverse sectors from hygiene services to sports marketing to logistics to stationery. The group’s international expansion began in 1995 when it acquired 50.1% of Australian Stock exchange listed Manettas. This business was renamed to Bidvest Australia. Bidvest has a small corporate office to give strategic direction, pursue strategic growth opportunities, support divisions, monitor performance, and maintain the entrepreneurial spirit and a red-tape free environment. http://en.wikipedia.org/wiki/Bidvest_Group#Business_model 8 August 2013 Bidvest currently operates four divisions – Bidvest South Africa, Bidvest Foodservice, Bidvest Namibia, and Bidvest Corporate. Its businesses span four continents namely Africa, Europe, Asia, and Australasia. In South Africa Bidvest has a footprint in a variety of about ten industries and focus on food services in the international market. The group is active in freight management, outsourced services, industrial and commercial products and services, printing, packaging closures, stationery, office products, corporate travel and automotive retailing. 3. Bidvest Key Success Factors To critically evaluate Bidvest Corporate Strategy we will highlight some of their key success factors: a) Leadership of original creator Leadership of the original creator, Brian Joffe is one of the key contributors to the success of Bidvest. His dreams are inherited the way Bidvest operates. b) Decentralised corporate management approach Bidvest pursues a decentralized business model where local businesses are autonomous and local management stay close to their businesses, industries and customers. It is people-driven and talent retention is one of its key strategic objectives. Despite its decentralization business model, it has a common culture of information and experience sharing across its divisions. It thrives on locally focused businesses and their empowered manager’s approach and its businesses are often industry leaders. In the South Africa market, the support for local small businesses is a priority. The Bidvest’s corporate centre adds value by identifying opportunities and implementing Bidvest’s decentralised entrepreneurial business model. Bidvest firmly believe in non-interference with individual business expertise/management. Others may think decentralisation is not always a good thing but Bidvest is an international organization with no standardized product/service for global market s. The following are advantages of decentralisation: Distribution of burden of top executive – Decentralisation enables its executives to share his burden with others at lower levels because here authority is delegated. The top executive is relieved of some burden and concentrates his activities to think for the future of the organization. This is definitely applicable to Bidvest Corporate where the Top Management focuses on the company strategy and not get burden down with the day to day management of activities. Increased motivation and morale – The moralities of the employees are increased because of delegation of authority. Decentralisation helps to increase employees’ morale because it involves delegation. The employees are motivated to work. Greater efficiency and output – Decentralisation gives emphasis on care, caution and enthusiastic approach to the work which in turn results in increased efficiency and output. This is possible because it involves delegation of authority and responsibility. Diversification of Activities – Decentralisation helps in diversification of activities. It crests more employment opportunities because new managers are to be entrusted with new assignments. Better Co-ordination – The various operations and activities are coordinated in a decentralised set up. Maintenance of Secrecy – Decentralisation enables to maintain secrecy without much cost and unnecessary trouble. Facilitate effective control and quick decision – Decentralisation enables to measure the work according to standard easily and quickly. This facilitate taking up quick decision. http://www.preservearticles.com/201101143290/decentralization-and-explain-its-advantages-and-disadvantages.html/ 8th August 2013 c) Business acquisition model It is argued that at the time when corporate giants were unbundling to focus on their â€Å"core competencies†, Bidvest took the opposite direction by acquiring different businesses in diverse markets under its fold, albeit with a lean central corporate structure supporting all its divisions. www.moneyweb.co.za/ 8th August 2013 One of the tactics Bidvest applies is to ensure that it owns 100% of almost all its underlying companies and keeping the original entrepreneur in charge of the purchased business/entity. This allows Bidvest to provide business, financing and strategic support to grow these firms’ to levels they could not have achieved on their own. Bidvest is a highly diverse and equally highly focused group – intense focus by managers steeped in their industries, drives Bidvest performance every year. d) Flair for entrepreneurship According to business dictionary, entrepreneurship can be defined as the capacity and willingness to develop, organize and manage a business venture along with any of its risk in order to make a profit. www.businesdictonary.com/ 8th August 2013. Because of the strong entrepreneurial flair in Bidvest, it has been a driving force that has fostered growth in a variety of sectors, creating the Group as we know it today. Clear vision about the way forward has become essential. e) Healthy organizational culture; a diversified product/service offerings Bidvest with its diverse businesses, have the advantage of collective diverse resources, capabilities and alliances, respectively, which it uses to leverage its overall performance as a group. f) Adding value by building a reputation for quality reliability and innovation In a price-sensitive environment the challenge, common to all Bidvest’s businesses, is to add value by building a reputation for quality, reliability and innovation. Market share growth and margin management were fostered by range extension, range differentiation and new product introductions that anticipated the lifestyle needs of the consumer. g) Quality of Bidvest brand The biggest factor that leads to the success of Bidvest is the quality of its brand and slogan ‘Proudly Bidvest’. This brand has penetrated so many industries and as well as the global arena. h) Bidvest’s philosophy is one of transparency, accountability, integrity, excellence and innovation Bidvest is consistently searching for newer and better innovations to satisfy consumer needs. i) Product innovation Sales growth at Bidvest’s is underpinned by organic growth, acquisitions, and product innovation and range extensions. j) Strategic Innovation To capture economies of scale, a centralised sourcing operation was established, Bidvest Procurement Company (BPC). Early experience at BPC was highly encouraging. The new business is centred in Hong Kong and Shanghai, but will ultimately be responsible for procurement across Asia. A new smartphone application was rolled out in Australia, New Zealand and the UK that enables customers to place an order via a handheld device. Close watch is maintained on handheld scanning technology for new business. 4. Corporate and Business strategy Grant (Grant 2011:19) see strategy in two dimensions by making a distinction between corporate strategy and business strategy. He defines corporate strategy as the scope of the firm in relation to the markets and industries in which it competes (where to compete). In this area the firm can make five fundamental strategic choices – diversification, vertical integration, acquisitions, new ventures, and allocation of resources between the different businesses of the company. He further defines business strategy as the function of how the firm competes within a particular industry and market (how to compete) – this is where the firm’s competitive advantage over rivals comes in. The above two strategy dimensions, are usually reflected in most organisations’ organizational structure – where the executive level focus on the scope, where to compete and divisional managers focus on the how to compete within particular industries. (Grant 2011:19). 5. Porter’s Diamond of National Competitive advantage Further to the key success factors above we will also incorporate Porter’s diamond shaped diagram as a basis of a framework to illustrate the determinants of national advantage. The diamond represents the national playing field that the countries establish for their industries. As a system the diamond system, the effect of one point depends on the others and it is a self-reinforcing system. http://www.smartstudentsok.com/porters-diamond-model 8th August 2013 According to Michael Porter on his work on firm-level factors (1986) and clusters of firms (1990) competitive advantage is created and not inherited. His view differs from the traditional economic thinking which focuses comparative advantage. Comparative advantage refers to things like availability of basic factors of production, like cheap labour or energy, or natural resources. On the other hand competitive advantage is created. Sustained industrial growth has hardly ever been built on inherited factors. Sustained industrial growth has been the outcome of interlinked factors and activities. The following are Porter’s four interlinked factors: i. Business / Company strategies, structures and rivalry According to Porter despite all differences and national peculiarities one characteristic shared by competitive economies is that there is sharp competition among national firms. In a static perspective, national champions may enjoy advantages of scale; but the real world is dominated by dynamic conditions, and here it is direct competition that impels firms to work for increases in productivity and innovation; here, anonymous competition often turns into concrete rivalries and feuds, in particular when competitors are spatially concentrated. â€Å"The more localized the rivalry, the more intense. (Porter 1990, 83) This is all the more true, as its effect is to cancel out static locational advantages and compel firms to develop dynamic advantages. Bidvest has achieved this by going global and maintaining the decentralised approach, as well as performing to stretch targets despite economic downturn. Competitive advantage Michael Porter identified two basic sources of competitive advantage – cost advantage and differentiation advantage. A company has cost advantage when it is able to deliver the same product/service benefits as competitors but at a lower cost. On the other hand a company has differentiation advantage when it delivers benefits that exceed those of its competitors’ products. Essentially a competitive advantage enables the company to create superior value for its customers and superior profits for itself. Cost and differentiation advantages are known as potential advantages since they describe the organizations position in the industry as a leader in either cost of differentiation. A competitive advantage is achieved by offering consumers greater value, benefits and service, which justifies premium or higher prices. Porter further recognises four generic business strategies for possible adoption to gain competitive advantage – these strategies relate to (1) scope (the extent to which business’ activities are narrow versus broad and (2) the extent to which a business seeks to differentiate its products. The four strategies are illustrated in Figure 1.1 below. Figure 1.1 – Source of competitive advantage (www.tutor2u.net/ 8 August 2013) Differentiation leadership and cost leadership strategies – seek competitive advantage in a broad range of markets/industries, Differentiation focus and cost focus strategies – applies in a narrow market or industry. Bidvest seeks competitive advantage in a broad range of markets / industries, operates in diverse industries/markets, and targets developing economies, both nationally and internationally. Based on this is it clear to us that Bidvest pursues the differentiation leadership and cost leadership strategies. Bidvest is differentiating itself from their competitors by being strong in their respective markets having sufficient market share to gain. As a group they achieved their growth target irrespective of the prevailing economic downturn. They further need to multi-currency earnings; and sharing of resources and best practices across all businesses in the group. ii. Existence or lack of related and supporting industries Spatial proximity of upstream or downstream industries facilitates the exchange of information and promotes a continuous exchange of ideas and innovations. On the one hand, he points out that even upstream industry should in no case be sheltered from international competition; and he notes on the other hand that when certain upstream industries are lacking, recourse can be had to the supply available in the world market. http://www.meso-nrw.de/toolkit/tools/tools-diamond-2.html 8 August 2013 iii. Analysis of Bidvest international/global business approach The Bidvest global strategy is driven by its foodservice operations and its objective criteria for full entry into any foreign/national market is based on the following three main pillars namely, (1) acceptable levels of infrastructure development, (2) existence of a strong corporate sector and (3) The potential for outsourced services. Bidvest is not fixated on a particular geography. Bidvest argues that it uses its African heritage with a strong focus on respect for diversity, as leverage in its global business approach to appreciate local conditions for its products, services and customers. The following are Bidvest’s uniqueness: a) It is an international organization with no standardized product/service for global markets; b) Does not have centralized business processes for its entities; c) Due to its diverse focus it operates in multiple national markets rather than in a single global space. Bidvest mainly focuses on providing necessities to developing economies and whilst its revenue is earned in multiple currencies, none it of it is denominated in U.S. dollars. It is our view that Bidvest should consider that their earnings be in US dollars in foreign countries. Internationally, foodservice has been the focus and Bidvest has developed globally competitive skills in this area to the extent that one-third of its trading profits are generated from foreign operations. Bidvest does not show specific interest to any geographic region or type of business. Its foodservice offerings and focus on developing economies, takes advantage of the urbanization paths of these economies . It however, remains alert to other support services opportunities on a case by case basis. Bidvest has an impressive international presence which is highlighted in brief as follows: Western Europe, – The Eurozone is facing many challenges which according to Bidvest leadership it is greatly attributed to poor decision making and policy considerations. Despite these challenges Bidvest finds Europe an attractive region for selective investments. Its rationale is that Europe has a well-educated workforce, infrastructure is generally well developed and the population is sizeable. Therefore, policy environment is a critical consideration for Bidvest in its international business strategy. Eastern Europe – Bidvest has recently acquired foodservice operations in Lithuania, Latvia and Estonia creating a platform for further growth in central and Eastern Europe and its entrepreneurship is flourishing in Eastern Europe and a business-friendly environment has developed. www.bidve st.co.za/ 8 August 2013). South America – Bidvest entered this market by the acquisition of a controlling interest in a small Chilean foodservice operation with exciting growth prospects. According to widely published reports at the end of 2011 South America’s largest economy (Brazil) has overtaken the UK as the world’s sixth largest economy and this is an indication of growing momentum in this region that Bidvest can benefit from. Bidvest is set to benefit from this growing economy. Southern African – the creation of Bidvest Namibia and its successful recent listing further enhances its presence in the region. iv. Managing global organisations Managing an international business is different from managing a domestic business for at least four reasons (Hill 2011:65): 1. Countries are different 2. An international business manager faces more complex challenges than a domestic business manager 3. Manager is an international business manager operates within limitations and constraints imposed by government’s intervention in the international trade and investment systems. 4. International business transactions involve multiple currency conversions. In view of the above research shows that Bidvest has found a solid recipe to overcome the above challenges. It is our view that Bidvest’s ability to succeed is its diversity in business locations and rich South African history and make up of national diversity often referred to as rainbow nation. Using Diversification as a strategy Diversification refers to a firm’s strategic choice to enter into other products and/or markets by through internal or external development. Hill describes diversification as a conundrum/challenge or puzzle, because a strategic choice/quest to enter new markets has more potential value destruction yet, it also offers growth options and the potential for expansion and to free itself of the restriction of a single industry (Hill 2011:403). There are basically two broad forms of diversification, first is related diversification which occurs when a company develops beyond its present product and market but remaining in the same sector and use its current capability/strengths and expertise to develop new interests in same sector. Secondly, unrelated diversification occurs when an organisation move its present interests into unrelated markets or products / services. Basic reasons for diversification may be summarised as follows: a. Efficiency gains, in the situation where a company has underutilized resources and competences that it cannot effectively close or sell, it makes business sense to use the resources and competences by diversifying into a new product or service activity. b. Increasing market power, a company can decide to cross-subsidize one business from the surpluses or proceeds earned by another in such a way that its competitors may not be able to. c. Stretching corporate parenting capabilities into markets and products d. Responding to challenging market declines e. Spreading risk Advantages of diversification as a strategic choice in relation to Bidvest: a. Take advantage of existing expertise, knowledge and resources in the company when expanding into new activities. This may result in transfer of skills, such as research and development knowledge and sharing of resources. b. Bidvest does not rely on single market which provides better risk control for their existence. c. Bidvest is doing well is avoiding risk by avoiding the syndrome of having all eggs in one basket d. Control of inputs, leading to continuity and improved quality. e. Control markets by guaranteeing sales and distribution. This can arise through a combination of linkages in the value chain. f. Provide movement away from declining activities Disadvantages of diversification strategy in relation to Bidvest i. Adding bureaucratic complexity. In addition to direct financial costs, there may additional bureaucratic complexities necessitated by the need to coordinate and control core activities with additional activities. ii. Cross subsidizing of loss business may take too long to be turned around while canabalising the revenue stream. iii. May result in slowing growth in its core business due to additional management cost incurred. iv. Losses may be incurred during market consolidation process resulting in some business units being subsidized by other profit making units. v. May result in negative synergies. Negative synergies should be avoided at all times. vi. Diversification through acquisition across national boundaries may result in the organization having to deal with varying intricacies of the political and legal requirements of the different countries where the company is operating. Political and legal requirements and or changes are nasty beasts to contend with mainly because in other countries they can be implemented over night. In a case like this a company like Bidvest may at times face closure where there is political turmoil. vii. Diversification through acquisition may result in failure where there is a mismatch between core competencies or experiences of the acquirer and acquired businesses http://www.scribd.com/doc/12376024/Advantages-and-Disadvantages-of-Diversification 8th August 2013 iv. Factor conditions Governments control provision of roads and airports, electricity, telecommunication infrastructure including cables and wireless; and education and healthcare. Leading to 2010 Soccer World cup South Africa provided a lot of capital infrastructure which is our view Bidvest benefited from. These provisions can in turn help or hinder industries dependent on these infrastructures and utilities for sustainable growth. Further, governments also create laws and regulations which affect the ability of firms to compete nationally and globally. Governments can provide subsidies to farmers as the US government does, or restrict foreign companies from doing business within their borders, as India did to Coca-Cola in the seventies. In South Africa we saw Government stop the involvement of Korea Telecoms in Telkom SA. South African encourages an environment which is conducive to innovation to stimulate growth in industries by skilled resources and technological base. These factors are upgraded / deployed over time to meet the demand. Local disadvantages force innovations and new methods and hence comparative advantage. http://www.franteractive.net/Porter-Diamond.html: 8 March 2013 Here, disadvantages in general factor endowments need not necessarily prove disadvantageous, and they can even stimulate the development of competitiveness. If cheap raw materials or labor are available in abundance, firms will often yield to the temptation to rely solely on these advantages, and even to put them to inefficient uses. Conversely, certain disadvantages (high real estate prices, scarce labor and raw materials) can force firms to behave innovatively. This of course presupposes that positive impulses are generated by the other factors. http://www.smartstudentsok.com/porters-diamond-model: 8 March 2013 v. Demand conditions The more demanding the customers in an economy, the greater the pressure facing firms to constantly improve their competitiveness via innovative products, through high quality, and so on. And the more localized the competition, the more directly firms feel it, and the better their performance has to be. 6. Conclusion on Evaluation Bidvest’s corporate culture and managerial competence are also the envy of many. This was illustrated during a recent restructuring exercise, in which all the new senior appointments were recruited from within the business. Thanks to Bidvest Academy designed to instill the culture of problem solving and implementation. We agree that success behind Bidvest is driven by autonomy, entrepreneurship, decentralised businesses and management. Local teams optimise opportunities in their own markets. It is our view that Bidvest is still under geared and we recommend that they further acquire more companies in the global space for further growth. Secondly, the fact that Bidvest’s earnings are in multi-currency and none of the currencies is dollars we find this as yet another opportunity for Bidvest to pursue for further global growth. Even though the barriers to entry in many of the businesses in which Bidvest operates are low, it has established such dominance and efficiency in operation that it is difficult to challenge. The group is also highly debt-averse. It is because of this position that Bidvesst is able to maintain through its ability to generate cash. The biggest challenges facing Bidvest are the current world economy, regulatory and legislative changes imperatives in the countries where it operates, the fact that technology lifecycle is forever getting shorter and shorter and the emerging economic giants from and in China and India. The challenge we faced in our evaluation of Bidvest is that research does not provide much on the company that operates unique business model like Bidvest. This unique business model can also be regarded key to their success and therefore its strengths. In our evaluation we found that because Bidvest is such a complex company which does not fit into the traditional business model and corporate / business strategy capsule for analysis. It has an organizational structure which is so complex and pursues business on a non-standard approach. It offers diversified products and or services to the market. On the other hand the size of Bidvest classifies it as a conglomerate and may need to be looked. Business analysts are increasingly questioning the size of the operation. Many feel that Bidvest needs to consider shedding some of its bulk in order to realize more value for shareholders. In conclusion Bidvest seems to have a solid corporate governance and integrated financial, social, governance and environmental culture. Even though the barriers to entry in many of the businesses in which Bidvest operates are low, it has established such dominance and efficiency in operation that it is difficult to challenge. Despite challenges being posed by China and India, the fact remains that Bidvest were early starters and a will continue to lead for some time. 7. REFERENCE 1. Robert M Grant. 2010. 7th edition A John Wiley & Sons, Ltd, Publication Contemporary Corporate Strategy: Text and Cases West Sussex, United Kingdom 2. Hill C.W.L. 2012. 7th Edition. Global Business Today, McGraw-Hill Companies, Inc 3. www.bidvest.co.za 2. http://www.businessdictionary.com/definition/decentralization.html/ 8th August 2013 3. http://www.preservearticles.com/201101143290/decentralization-and-explain-its-advantages-and-disadvantages.html/ 8th August 2013 4. http://www.smartstudentsok.com/porters-diamond-model 8th August 2013 5. Bidvest Annual Integrated Report, 2012 6. www.tutor2u.net 7. http://www.meso-nrw.de/toolkit/tools/tools-diamond-2.html 8 August 2013 8. www.moneyweb.co.za 9. http://www.scribd.com/doc/12376024/Advantages-and-Disadvantages-of-Diversification 8th March 2013 10. http://www.franteractive.net/Porter-Diamond.html