Financial Management in Non Profit Organizations

ITO-YOKADO COMPANY, LTD. M. Edgar Barrett and Christopher D. Buehler Overview The Ito-Yokado Company consisted of three business segments: Superstores and other Retail Operations (lto-Yokado superstores, Daikum discount stores, York Mart, York Benimaru, Robinson's Department Stores, and Oshman's Sporting Goods); Restaurant Operations (Denny's and Famil Restaurants); and Convenience Store Operations (7-Eleven Japan). Ito- Yokado had just acquired struggling Southland Corporation and transitional long-term strategies for Southland would have to be developed.Although diversified, Southland's largest business segment was its Stores Group responsible for operating and franchising of over 7,500 7-Eleven convenience stores. Masanori Takahashi, a senior strategy analyst for Ito-Yokado was considering the possibility that long-term strategies that had been successful in Japan also could be successful in the United States was vastly different than that of Japan; nevertheless, he was confident that through careful and thorough planning, the goal of making Southland profitable could be achieved. Learning Objectives . To acquaint students with the development of a Japanese company and its move into U. S. markets essay writer service review. 2. To acquaint students with elements of â€Å"Japanese management† through Ito-Yokado's â€Å"operation reform project† and to induce them to question the transferability of marketing across national boundaries. 3. To familiarize students with the nature of retailing in Japan buying essay papers online. 4. To show how Southland Corporation became subject to acquisition by Ito-Yokado Company, Ltd. 5. To present the nature of the convenience store industry in the United States.In mid-March 1991, Masanori Takahashi, a senior strategy analyst for Ito-Yokado Company, was preparing to depart for Dallas, Texas. Once there, he would be leading a team of Japanese and American managers responsible for establishing transitional and l ong-term strategies for the Southland Corporation. After nearly an entire year of intense bargaining and negotiation with Southland and its creditors, Ito-Yokado acquired Southland on March 5, 1991. Takahashi began working with Ito-Yokado in 1972 as an assistant manager of one of the company's superstores. He had advanced to the position of regional manager by 1979.In early 1981, Ito-Yokado's Operation Reform Project was conceived and Takahashi was asked to be a member of the team leading the project. During the first few months on the team, Takahashi quickly understood certain crucial aspects of the new project, most notably the use of point-of-sale (POS) systems. Implementation of the project advanced most rapidly in Ito-Yokado’s 7-Eleven Japan subsidiary, so he also had become familiar with the operating environment of convenience stores in Japan. As Takahashi left his Tokyo office, he could not help but feel both excitement and apprehension regarding his new position.He h ad gained confidence while involved with the successful Operation Reform Project at Ito-Yokado's superstores and 7-Eleven Japan convenience stores, but this experience might or might not prove to be useful in respect to Southland. COMPANY BACKGROUND Ito-Yokado's founder, Masatoshi Ito, was born in 1924 and graduated from a commercial high school in Yokohama. He worked briefly at Mitsubishi Heavy Industries before joining Japan's war effort in 1944. After World War II, he worked with his mother and elder brother at the family's 66-square-foot clothing store in Tokyo. 1 The store was incorporated as Kabushiki Kaisha Yokado in 1958.By 1960, Ito was in sole control of the family business. During that same year he made his first visit to the United States. In 1960, Ito visited National Cash Register (NCR) in Dayton, Ohio. While in the United States, Ito was introduced to terms such as â€Å"supermarkets† and â€Å"chain stores† by NCR, which was interested in selling cash r egisters to Japanese retailers. In Japan, retailing was dominated by mom-and-pop stores and a handful of venerable department stores, with few types of retail outlets in between. At this time, Ito began to see the possible role of mass merchandisers in a society becoming â€Å"mass-oriented. Ito soon opened a small chain of superstores in the Tokyo area. These stores carried a large selection of household goods, food, and clothing of generally lesser quality and lower price than either the mom-and-pop or department stores. ‘ By 1965, Ito had opened eight superstores. In the same year, the name of the chain was changed to Ito- Yokado. The Growth of Ito- Yokado as a Superstore Ito's concept for the superstores was centered on having the rough equivalent of several types of retail stores contained within one multistory superstore.The initial stores were located near population centers and railroad stations in the Tokyo areas. ‘ Often, several stores were located in close p roximity in order to achieve â€Å"regional dominance. † The results were high name recognition, reduced distribution costs, and the effective squeezing out of competition. Ito soon realized that social changes in Japan could create new opportunities for his retailing ideas. Younger and more mobile Japanese appeared to be less willing to spend a great deal of time shopping at numerous mom-and-pop stores. Also, the Japanese society was experiencing increased suburbanization.Ito decided to locate stores in suburban prefectures. There were 47 prefectures (provinces) in Japan. One reason for locating stores in suburban areas was the lower cost of real estate. This allowed Ito-Yokado to open larger stores with more parking spaces than competitors located in congested urban areas. Ito continued to use a strategy of â€Å"regional dominance† with these new openings, most of which were concentrated in the greater Kanto district, which consists of the Tokyo metropolitan area an d surrounding cities. By the early 1970s, Ito-Yokado stores were opening at the rate of four or five per year.By the late 1970s, nine or 10 new stores ‘were opened annually. † In early 1987, 101 of 127 Ito- Yokado superstores were located in the greater Kanto district. Ito also adopted a strategy of leasing some properties for new stores. As of the mid-1980s, more than 87 percent of Ito-Yokado's aggregate sales floor space, 10 of the company's 11 distribution centers, and the company headquarters in Tokyo were all leased? Often, property prices were astronomical, or the owners of well-located sites would not part with their property for any price. Constraints on GrowthThe initial success of Ito-Yokado and the other superstores soon resulted in retaliatory action by a powerful competitor: the mom-and-pop store owners. These small retailers were said to â€Å"pull the strings of Liberal Democratic Party politicians at the local level. †8 The action initiated by the small retailers resulted in the 1974 Large Store Restriction Act, which was subsequently strengthened in 1979. The original act restricted the opening of stores with sales areas of more than 1,500 square meters (16,500 square feet). In addition, the act restricted the hours of operation of new and existing large stores.A series of changes in 1979 added restrictions on stores with sales areas greater than 500 square meters (5,500 square feet). A Commerce Coordination Committee was established in each area in order to set policy regarding large-store openings and hours of operation. The committees were effectively controlled by the small retailers. By the early 1980s, Ito-Yokado was opening only four or five new stores annually. † Factors other than the Large Store Restriction Act adversely affected Ito-Yokado. Japanese consumers' real disposable income decreased by a little more than 1 percent during 1980-1981. 0 Japan experienced a general economic downturn in the early 1980s, as did the rest of the world, again serving to limit consumer purchasing power. Net income for Ito- Yokado-which had grown almost 30 percent per year between 1976 and 1981-grew by 9. 7 percent in 1982 and by 0. 9 percent in 1983. 11 The legal restrictions imposed on large stores, when combined with the economic downturn, led to both lower current earnings and a projection of reduced rates of growth in future earnings. Ito-Yokado as a Parent Company During the early 1970s, Ito began pursuing new retailing interests.In 1972, he approached Dallas-based Southland Corporation in an attempt to secure a license to operate 7-Eleven stores in Japan. He was rebuffed. He made a similar attempt in 1973 with the aid of a Japanese trading company, C. Ito and Company, and was successful in obtaining the license. Concurrently, Ito was pursuing another U. S. firm, Denny's Restaurants, in an attempt to obtain rights for opening Denny's Restaurants in Japan. Both subsidiaries, Denny's Japan and 7-Ele ven Japan (originally called York Seven but renamed 7-Eleven Japan in 1978), were established in 1973.The first 7-Eleven and the initial Denny's in Japan were both opened in 1974. Stock for each of the two majority- owned subsidiaries was traded independently on the Tokyo Stock Exchange. Both subsidiaries became profitable around 1977. ITO-YOKADO IN THE 1980s The Ito-Yokado group consisted of three business segments: Superstores and other Retail Operations, Restaurant Operations, and Convenience Store Operations. The Convenience Store Operations segment was made up of 7-Eleven Japan. The Restaurant Operations segment consisted of Denny's and Famil Restaurants.Ito-Yokado super- stores, Daikuma discount stores, two supermarket chains (York Mart and York-Benimaru), Robinson's Department Stores, and Oshman's Sporting Goods Store made up the Super-stores and other Retail Operations segment. Ito-Yokado's financial statements are shown in Exhibits 1 through 3 in separate attachments. SUPER STORES AND OTHER RETAIL OPERATIONS York Mart and York-Benimaru York Mart was a wholly owned subsidiary established in 1975. In 1990, it operated 40 supermarkets located primarily in the Tokyo area.These stores sold mainly fresh foods and packaged goods, and competition was high in this geographic and retail area. Ito- Yokado's Operation Reform Program was implemented by York Mart in 1986 as a means to boost efficiency and profits. By 1990 sales were increasing at 6 percent per year. See Exhibit 3. Is York-Benimaru was a 29-percent-owned affiliate of to-Yokado, and was an independently managed regional supermarket chain. York-Benimaru operated 51 stores as of 1988. The stores were located in the Fukushima prefecture of Koriyama-city in northern Japan. Like York Mart, York-Benimaru operated with a higher profit margin than the supermarket industry as a whole. York-Benimaru's earnings growth rate of 13 percent per year was expected to last into the 1990s, and Ito-Yokado's share of this profit was the major contribution to the â€Å"equity in earnings of affiliates† portion of Ito- Yokado's income statement (see Exhibit 2). Daikuma Daikuma discount stores were consolidated into the Ito-Yokado group in 1986, when Ito-Yokado's ownership of Daikuma increased from 47. 6 percent to 79. 5 percent. † In 1990, Daikuma was one of the largest discount store chains in Japan with 14 stores.Although Daikuma was popular among young Japanese consumers, the discount stores attracted the critical attention of competing small retailers. Because the discount stores were regulated by the Large Store Regulation Act, intensive effort was required to open new stores. Despite these circumstances, and increasing competition, Daikuma opened two discount stores in 1989. Robinson's Department Stores In 1984, the Robinson's Japan Company was established to open Robinson's Department Stores in Japan. The Robinson's name was used under the terms of a license granted by the U.S. sto re of the same name. The Japanese company was wholly owned by Ito-Yokado, and the first Robinson's Department Store in Japan was opened in November 1985 in Kasukabe City of Saitama Prefecture. This was a residential com- munity north of Tokyo and was a rapidly growing area. Although an Ito- Yokado super- store was located nearby, Ito-Yokado's management believed that a niche existed for a slightly more upscale retail store. Ito-Yokado had â€Å"shattered traditional wisdom by opening up a department store in the suburbs, not in the center of Tokyo. 21 The location was expected to serve a population area of more than 600,000 residents and to offer a broad selection of consumer goods at prices higher than superstores yet lower than the downtown Tokyo department stores. ~ Many of the strategies employed by Ito-Yokado in opening its Robinson's Department Store followed similar strategies employed in its superstores. The land was leased (in a suburb). Instead of purchasing goods on a co nsignment basis as most other department stores did, Robinson's managers were made responsible for the outright purchase of goods from suppliers.This allowed Robinson's to purchase goods at a significantly reduced price. Robinson's reported its first profit in fiscal 1989, approximately four years after opening. † In contrast, most Japanese department stores operate approximately 10 years before reporting a profit. The single Robinson's location grossed about ? 28 billion (US$220 million) in fiscal 1989. 24 The second Robinson's Department Store opened in late 1990 in Utsunomiya, about 100 kilometers (60 miles) north of Tokyo. Oshman's Sporting GoodsIto-Yokado licensed the Oshman's Sporting Goods name from the Houston, Texas, parent company in 1985. That year, two stores were opened. One of the stores was located inside the original Robinson's Department Store. RESTAURANT OPERATIONS The Famil Restaurant chain was started in 1979 as an in-store restaurant to serve customers at Ito-Yokado superstores. It had; however, expanded to 251 locations by 1988. 25 The Famil chain did not record its first positive earnings until 1986. In Famil's attempts to expand operations, the company had emphasized its catering business. By 1990, the in-store operations (those located in Ito- Yokado superstores) accounted for 45 percent of Famil's sales, the catering business accounted for 32 percent of sales, and freestanding stores accounted for 23 percent of sales. † Denny's Japan Ito-Yokado opened the initial Denny's (Japan) Restaurant in 1974 with a license from Denny's of La Mirada, California. Ito-Yokado tailored the U. S. family restaurant to the Japanese market, and Denny's Japan became profitable around 1977. By 1981, 100 Denny's Japan restaurants had been established. † and in 1990 there were 320 such restaurants operated by Ito-Yokado. In 1990, Ito-Yokado controlled 51 percent of Denny's Japan stock. In the early 1980s. Ito-Yokado decided that Denny's Jap an should purchase all rights to the Denny's name in Japan. The purchase was made in 1984, and royalty payments to the U. S. parent were thereby discontinued. In fiscal year 1990 (March 1989 to February 1990), Denny's Japan reported a net annual sales increase of 10. 9 percent, as compared with the 4. 9 percent Japanese restaurant industry sales increase for the same period= Exhibits 4 and 5 contain financial statements for Denny's Japan.In 1988, Denny's Japan began using an electronic order-entry system, which allowed managers of individual restaurants to quickly order food sup- plies based on trends in their own restaurants. It also allowed for the periodic updating of menus to reflect new food items. See exhibits 4 and 5. CONVENIENCE STORE OPERATIONS 7-Eleven Japan Since the opening of the first 7-Eleven store in 1974, the chain had grown to more than 4,300 stores located in virtually all parts of Japan by February 1990. 32 At that time, about 300 new stores were being opened ann ually.Ito-Yokado owned approximately 50. 3 percent of 7-Eleven Japan in 1990. Originally, young urban workers represented the primary customer base. As 7-Eleven penetrated the Japanese market, however, almost everyone became a potential customer. In Tokyo, for example, utility bills could be paid at the chain's stores. The 7-Eleven stores were small enough, with an average of only 1,000 square feet, to effectively avoid regulation under the Large Store Regulation Act. This allowed 7- Eleven to compete with the mom-and-pop retailers on the basis of longer hours of operation and lower prices.Faced with this competition, many of the small retailers joined the ranks of 7-Eleven. By converting small retailers to 7-Eleven stores, Ito-Yokado was able to expand rapidly and blanket the country† 7-Eleven Japan pursued a strategy of franchising stores instead of owning them. The franchise commission for 7-Eleven stores was approximately 45 percent of the gross profit of the store (the co mmission was 43 percent for 24-hour stores). Ito-Yokado provided most of the ancillary functions for each store (e. g. , administration, accounting, advertising, and 80 percent of utility costs).In 1987, 92 percent of all 7-Eleven stores in Japan were franchised. † and by 1990, only 2 percent of the 7-Elevens were corporate owned. † Within the Ito-Yokado group, 7-Eleven contributed 6. 8 percent of revenues in 1990. With this relatively small portion of overall corporate revenues, however, 7- Eleven Japan contributed more than 35 percent of the group's profit. Under its licensing agreement, 7-Eleven Japan paid royalties of 0. 6 percent of gross sales to the Southland Corporation. In 1989 and 1990, 7-Eleven Japan paid royalties of about $4. 1 million and $4. million, respectively. The financial statements for 7-Eleven Japan for the years 1986 to 1990 are shown in Exhibits 6 and 7. OPERATION REFORM PROJECT Ito-Yokado implemented the Operation Reform Project in late 1981 in a retail industry environment punctuated by reduced consumer spending and decreasing margins. The goals of the project were to increase efficiency and boost profitability by increasing the inventory turn while avoiding empty store shelves. The plan was originally implemented in the Ito- Yokado Superstores and the 7- Eleven Japan convenience stores.The implementation of the project involved a coordinated effort of catering to rapidly changing consumer preferences while, simultaneously, monitoring merchandise flow more closely. This coordination was accomplished by making individual store managers more responsible for such decisions as what merchandise was to be stocked on store shelves, thus allowing managers to tailor merchandise selection in their individual stores to local preferences. Top Ito-Yokado regional managers held weekly meetings with store managers to monitor the implementation of the project.As late as 1988, these meetings were still held on a weekly basis. † In o rder to avoid depletion of store stocks, Ito-Yokado established an on-line ordering system with vendors. In 1982, the ordering system reached only 400 vendors. By 1988, however, the system linked Ito- Yokado with 1,860 vendors. Point-of-Sale System As implementation of the Operation Reform Project began, Ito-Yokado paid increased attention to the importance of obtaining information regarding the flow of merchandise through individual stores. The tool chosen to accomplish this task was the point-of-sale system.POS system usage was increasing in the United States in the early 1980s, but the systems were used primarily to increase productivity at the cash register. In contrast, Ito- Yokado used similar systems as a part of the project by monitoring specific merchandise flow. As of the late 1980s, many retailers in the United States had begun utilizing POS in similar capacities, and some had begun to use POS to track the purchases of individual consumers. The first use of POS systems in Japan came in 1982, when 7-Eleven Japan began installing them in its stores. By 1986, every 7-Eleven store in Japan was equipped with such a system. The systems available were sophisticated enough to monitor the entire stock of merchandise in a typical convenience store having about 3,000 items. ‘ The systems could monitor the flow of every item of merchandise through the purchase, inventory, sale, and restocking stages. In late 1984, Ito-Yokado decided to install POS systems in the superstores. The sophistication of those systems installed in convenience stores, however, was not adequate to handle the merchandise flow of a superstore, which could stock up to 500,000 items. † New POS systems were developed n a coordinated effort by Ito-Yokado, Nippon Electric, and Nomura Computer Services. The installation of POS systems in the existing superstores was completed in November 1985, with more than 8,000 POS registers installed in 121 stores. † With 138 stores in 1990 , Ito-Yokado had an estimated 9,000 POS registers in the superstores alone. In 1986, after the systems had been installed in all superstores and 7-Elevens, Ito- Yokado accounted for about 70 percent of the POS systems in use in Japan as of 1988; 7-Eleven Japan was the only major convenience store chain in Japan to have installed POS systems. By August 31, 1989, Japan had 119,137 POS scanner-equipped registers in 42,880 stores, making it the country with the most POS systems in use. † The POS systems used by 7-Eleven Japan and Ito-Yokado superstores were upgraded in 1986 to add a new dimension to Ito-Yokado's Operation Reform Project. The upgraded systems allowed for bidirectional communication with the company headquarters. This feature essentially allowed information to flow not only from individual stores to a central location, but also from the central location back to individual stores.By linking the central system to other computer systems, more information than just sale s of retail items could be transmitted. This capability allowed Ito-Yokado to increase the efficiency of deliveries by centralizing some orders. By increasing the total size of orders, Ito-Yokado increased its bargaining position with distributors. One result of this bargaining strength was more frequent deliveries of smaller volume. From 1987 to 1988, deliveries increased from one to three per week for stores in many regions of Japan, notably the Tokyo, Hokkaido, and Kyushu areas.Using the POS systems, 7-Eleven began to offer customers door-to-door parcel delivery in conjunction with Nippon Express. In addition, some POS terminals were being used to issue prepaid telephone credit cards+' Since October 1987, Tokyo-area customers had been able to pay their electric bills at 7-Eleven; since March 1988, they had also been able to pay their gas bills Women traditionally manage household finances in Japan, so these services were designed to attract more women customers to the convenience stores. Results For the Ito-Yokado superstores alone, average days of inventory decreased from 25. in 1982 to 17. 3 in 1987. By 1990, it was estimated to be 13 days. The effect on operating margins and net income for the entire Ito-Yokado Corporation was equally dramatic. In 1982, the company's operating margin stood at 5. 1 percent. It had increased to 8. 1 per- cent by 1987. By 1990, the operating margin had climbed to 10. 5 percent. Net income for the corporation increased from ? 14,662 million in 1982 to ? 34,649 million in 1987, and ? 58,465 million in 1990. 7-Eleven Japan recorded similar increases in operating margins and net income during the same period.In 1982, 7-Eleven Japan's operating margin was 20. 7 percent. It had increased to 34. 6 percent by 1987. Net income from the 7-Eleven operations increased from ? 7,837 million in 1982 to ? 33,000 million in 1987. As of 1990, the Ito-Yokado Corporation was the second largest retailer in Japan, with ? 1,664,390 million of ann ual gross sales. The leading retailer was Daiei, with ? 2,114,909 million of revenues. Ito- Yokado was, however, the most profitable retailer in Japan, with net income of ? 58,465 million. In comparison, Daiei recorded net income of only ? 9,457 million for 1990.Financial statements for Daiei are shown as Exhibits 8 and 9. THE SOUTHLAND CORPORATION The Southland Corporation began in Dallas, Texas, in 1927 when Claude S. Dawley consolidated several small Texas ice companies into the Southland Ice Company. This new company was under the direction of 26-year-old Joe C. Thompson, Sr. Under Thompson's guidance, Southland began to use its retail outlets (curb service docks) to sell products in addition to ice, such as watermelon, milk, bread, eggs, and cigarettes. With the addition of these products, the concept of the convenience store was born.During the Great Depression and the 1940s, Southland's convenience store business added several more products, including gasoline, frozen foods, beauty products, fresh fruit and vegetables, and picnic supplies. Because the store opened at 7 AM and remained open till 11 PM, the store name 7-Eleven was adopted during this time. The 1950s were a period of substantial growth in terms of the number of stores and of 7-Eleven's geographical coverage. The first stores located outside of Texas were opened in Florida in 1954. During the same year, 7-Eleven's operating profit surpassed the $1 million mark for the first time.By 1959, the entire 7-Eleven empire constituted 425 stores in Texas, Louisiana, Florida, and several other East Coast states. John Thompson became president of Southland when his father, Jodie Thompson, died in 1961. During the 1960s, a population migration toward the suburbs and changing lifestyles presented Southland with new growth opportunities. John Thompson lead Southland on the path of expansion, and more than 3,000 stores were opened in the decade. The product line of 7-Eleven also grew during this time to i nclude prepared foods, rental items, and some self-service gasoline pumps.The 1970s were also a period of achievement for Southland. In 1971, the $1 billion sales mark was surpassed. Southland- stock began trading on the New York Stock Exchange in 1972, and the 5,OOOth store was opened in 1974. It was at this time that Masatoshi Ito approached Southland with the prospect of franchising 7-Eleven stores in Japan. During the 1970s and early 1980s, Southland's activities became more diversified. In 1986, the company had four operating groups: the Stores Group, the Dairies Group, the Special Operations Group, and the Gasoline Supply Division.The Stores Group represented the largest of the operating groups in terms of sales through the 1980s. The Stores Group was responsible for the operating and franchising of convenience stores. At the end of 1985, there were 7,519 7-Eleven stores in most of the United States and five provinces of Canada. This group was also responsible for 84 Gristede' s and Charles & Company food stores. 38 Super-7 outlets, and 7-Eleven stores operated under area licensees in the United States, Canada, and several Pacific Rim countries, including Japan.The Dairies Group was one of the nation's largest dairy processors in 1986 and served primarily the Stores Group, although aggressive marketing in the 1980s targeted service to institutional dairy needs. This group operated in all of the United States and parts of Canada. The Special Operations Group consisted of Chief Auto Parts (acquired in 1979); Pate Foods (a snack food company): Reddy Ice (the world's largest ice company); and Tidel Systems (a manufacturer of cash dispensing units and other retailer equipment).The Gasoline Supply Division was formed in 1981 to serve the gasoline requirements of the more than 2,800 7-Eleven stores handling gasoline. This division's history was punctuated by the 1983 acquisition of Cities Service Refining, Marketing, and Transportation businesses (CITGO) from Oc cidental Petroleum. Southland's Recent Activities Southland's dramatic growth and diversification during the 1970s and early 1980s resulted in 7-Eleven having a dominant position in the convenience store industry.Despite this position, circumstances since the mid-1980s had greatly eroded 7-Eleven and Southland's strengths. The oil price collapse of early 1986 was the sharpest drop of crude oil prices in history. The instability of crude oil and wholesale refined products, coupled with CITGO's inventory methods and various write-downs, resulted in only modest income for a previously very profitable company. The volatility of CITGO's financial position greatly affected Southland's earnings. Southland's equity interest in CITGO contributed to a $52 million loss for the entire corporation in 1986.In order to reduce the impact of an unstable crude oil market and the accompanying volatility of CITGO's earnings, South- land entered into a joint venture with Petroleos de Venezuela (PDVSA) i n late 1986. The joint venture with PDVSA had several components. Southland sold a half- interest in CITGO to a subsidiary of PDVSA for $290 million. In addition, PDVSA agreed to both supply CITGO with a minimum of 130,000 barrels of crude oil per day and pro- vide its share of CITGO's working capital requirements. A takeover attempt of Southland occurred in April 1987.Canadian financier Samuel Belzberg approached the Southland board of directors with an offer of $65 per share of common stock. Unwilling to relinquish control of Southland, the Thompson family tendered $77 per share for two-thirds of the outstanding shares in July 1987. The other third of the shares would be purchased at $61 per share (plus $16 per share of new preferred shares) by the would-be private Southland Corporation. Financing for this acquisition came from $2 billion in loans from a group of banks and a $600 million bridge loan from Goldman, Sachs and Salomon Brothers. An additional $1. billion was generated by the issue of subordinated debentures Gunk bonds) in November 1987. This occurred after the stock and junk bond markets crashed in October 1987. Southland's investment bankers had to sell the bonds at a blended rate of almost 17 percent, instead of the anticipated rate of 14. 67 percent. The Thompson family emerged from the buyout owning 71 percent of Southland at a total cost of $4. 9 billion. Paying the High Costs of a Leveraged Buyout After Southland had been taken private through the leveraged buyout (LBO), significant changes occurred in both Southland and 7-Eleven operations.Southland was restructured, with the elimination of two levels of middle managers. During this time, Southland began selling more 7-Eleven stores than it opened in the United States and Canada. Due to the increased number of licensees opening stores overseas, however, the total number of stores worldwide continued to increase. 7-Eleven Japan was primarily responsible for this increase, with the opening o f 340 stores in 1988 and 349 stores in 1989. Southland also divested itself of many large assets in the 1988 to 1990 period (see Exhibit 10).Significant in this group of divestments were the entire Dairy Group, more than 100 7-Eleven stores in the continental United States, Southland's remaining interest in CITGO (sold to PDVSA), and 7-Eleven Hawaii, (purchased by 7-Eleven Japan). In November 1989, 7-Eleven Japan purchased 58 stores and additional properties from Southland. These properties and stores, which were located in Hawaii, were exchanged for $75 million in cash. The 58 convenience stores were organized as 7- Eleven Hawaii, which was established as a subsidiary of 7-Eleven Japan.As of December 31,1990, Southland operated 6,455 7-Eleven convenience stores in the United States and Canada, 187 High's Dairy Stores, and 63 Quick Mart and Super-7 Stores. Southland owned 1,802 properties on which 7-Eleven stores were located. Another 4,643 7-Eleven stores in the United States and C anada were leased. In addition the company possessed 234 store properties held for sale, of which 109 were unimproved. 77 were closed stores! and 48 were excess properties adjoining store locations. Three of Southland's four food-processing facilities were owned (the other was leased).The company owned six properties in the United States on which distribution centers were located. Five of the six distribution centers were company owned. Until December 1990 the company had also owned its corporate headquarters (called City- place) located near downtown Dallas. 59 Financial statements for Southland Corporation are shown in Exhibits 11 and 12. THE PROPOSED PURCHASE OF SOUTHLAND BY ITO-YOKADO The divestments of 1988, 1989, and 1990 constituted attempts by Southland to generate sufficient cash to service the massive debt incurred from the LBO of 1987.By early 1990, however, it was apparent that the cash generated from these divestments and Southland's operations was not sufficient to cov er its interest expense. Some experts estimated that Southland's cash shortfalls would reach $89 million in 1990 and more than $270 million in 1991. 60 Southland's long-term debt still totaled about $3. 7 billion, and interest expense alone in the first three quarters of 1989 was almost $430 million. † In March of 1990, Southland announced that it was seeking â€Å"rescue† by Ito-Yokado. Proposed Acquisition of Southland by Ito- YokadoSouthland had â€Å"looked at possibilities of receiving assistance from other U. S. companies, but decided that†¦ Ito-Yokado was the best potential partner. â€Å"63 The original proposal would have resulted in Ito-Yokado receiving 75 percent ownership of Southland for $400 million. This proportion of Southland would be split between Ito- Yokado and 7- Eleven Japan, with 7- Eleven Japan obtaining two-thirds of the 75 percent share. The deal was contingent on Southland's ability to swap its outstanding publicly traded debt for stock and zero-coupon (non-interest-bearing) bonds.The publicly traded debt amounted to approximately $1. 8 billion. There were five classes of public debt, ranging in type and interest paid. The interest rate of the bonds varied from 13. 5 percent to 18 percent. Ito-Yokado's offer was also contingent on 95 percent of all bond- holders of each public debt issue accepting the swap. Under this original proposal, the Thompson family would retain a 15 percent stake in Southland, and the remaining 10 percent of the company would be held by bondholders.The original proposal had a deadline of June 14, 1990, at which time either Ito- Yokado or Southland could cancel the agreement. Neither party indicated that such action would be taken, even though Southland's bondholders balked at the swap proposal. A bigger problem was facing the two companies: a rapidly approaching interest payment due on June 15, 1990. Southland's failure to pay the $69 million payment would result in Southland having a 30-d ay grace period in which to compensate bond- holders. At the end of the 30-day period, unpaid bondholders could try to force South- land into bankruptcy court. Revisions to the Proposed Buyout Southland did not make its scheduled interest payment that was due on June 15, 1990. Bondholders, meanwhile, had shown little regard for the original deal struck between Ito-Yokado and Southland. Three more revisions of the proposed debt restructuring and terms for the buyout were submitted between mid-June and mid-July 1990. In each revision, either Ito- Yokado's or the Thompson family's stake in Southland was reduced and the share of Southland stock offered to bondholders increased.With each revision came increased bondholder support, yet this support was far short of either the two-thirds majority (as required in Chapter 11 restructuring cases) or the 95 percent acceptance rate dictated by Ito-Yokado, As revisions were submitted, the expiration dates of the debt restructuring and stock purc hase by Ito- Yokado were extended. On July 16, a bondholder filed suit against Southland for failure to pay interest on June 15, because on July 15 Southland's grace period had expired. By September 12, a majority of bondholders had tendered their notes. This majority was still far short, however, of the 95 percent swap requirement dictated by Ito-Yokado. The deadlines were extended to September 25 for both the debt swap offer by Southland and the stock purchase offer by Ito-Yokado. As Southland was apparently headed for involuntary bankruptcy filing under Chapter 11, the proposal again seemed in jeopardy. Acceptance of the Proposed Buyout The deadline for Southland's debt swap offer was again extended. Bondholder approval was finally obtained in late October.Ito-Yokado's offer to buyout Southland was extended to March 15, 1991, pending court approval of the prepackaged bankruptcy dea1. The bankruptcy-court petition for approval of the prepackaged debt restructuring was filed on Oct ober 24,1990. Although Southland did not have sufficient bondholder approval as dictated by Ito-Yokado, the bankruptcy court proceedings were swift. The last few bondholders who held out were placated in January when the Thompsons relinquished warrants for half of their 5 percent stake of Southland's stock. † On February 21, 1991, the U. S. ankruptcy court in Dallas approved the reorganization of Southland.?! At that time, at least 93 per- cent of the holders of each class of debt issued by Southland had approved the reorganization. On March 5, 1991, Ito-Yokado purchased 71 percent of Southland's stock for $430 million. Two-thirds of this stock was purchased by 7-Eleven Japan, and the other third purchased directly by Ito-Yokado. The terms of the accepted debt-restructuring agreement between Southland and its bondholders are shown in Exhibit 13. THE CONVENIENCE STORE INDUSTRY IN THE UNITED STATESThe convenience store industry in the United States changed dramatically during th e decade of the 1980s. The number of convenience stores in the United States, the gross sales of these stores, and the gross margins all increased during this time period. The net income of convenience stores, however, decreased significantly. This outcome was largely the result of the rapid expansion of several chains of convenience stores and the increased number of convenience stores opened by oil companies. Aggregate Measures of the Industry The number of convenience stores grew from about 39,000 in 1982 to more than 70,000 in 1989.From 1985 to 1989, industry sales increased from $51. 4 billion to $67. 7 billion, an increase of 6. 3 percent per year. Gross margins increased from 22. 8 percent in 1985 to 26. 2 percent by 1988. Despite such growth, convenience store operations experienced a decrease in net profit in the late 1980s. The total industry pretax profit peaked in 1986 at $1. 4 billion, fell to $1. 16 billion in 1988, and plummeted to $271 million in 1989. Some trends ar e shown in Exhibit 14. The expansion of convenience stores in the 1980s was led by large convenience store chains and oil companies.In addition to the growth experienced by the Southland Corporation's 7-Eleven, Circle-K, a Phoenix-based convenience store chain, expanded from 1,200 stores in 1980 to 4,700 stores in 1990. The Role of the Oil Companies The impact of oil companies on the convenience store industry had been significant. Virtually all of the major U. S. oil companies began combining convenience store operations with gasoline stations in order to boost profits. In 1984, Exxon opened its first combination convenience store and gas station. By 1989, it had 500.Texaco operated 950Food Marts in the same year. From 1984 to 1989, the number of convenience stores operated by oil companies increased from 16,000 to 30,000. Gasoline sold at a lower margin (about 6 percent in 1984) than nongasoline convenience store products (32 percent in the same year), so the sale of convenience s tore items presented an opportunity for those gas stations with good locations (i. e. , street comers) to increase profits. In order to capitalize on the potential for higher profits in retailing, the major oil companies boosted their marketing expenditures.In 1979, the petroleum industry spent about $2. 2 billion for their marketing efforts. By 1988, these expenditures were almost $5 billion. The convenience stores operated by oil companies were growing in both number and size. In 1986, only about 20 percent of the oil company convenience stores were 1,800 or more square feet in size (the size of about 90 percent of traditional convenience stores). By 1990, however, more than 50 percent of the oil company convenience stores were between 1,800 and 3,000 square feet in size. â€Å"? Merchandise Trends for Convenience StoresBecause of the intensified retailing efforts of oil companies and large convenience store chains, some trends (other than those mentioned previously) evolved. In 1985, gasoline accounted for 35. 4 percent of convenience store sales. By 1989, gasoline accounted for 40 percent of sales. † The gross profit margin for gasoline sales had increased from 7. 3 per- cent to 11. 7 percent more than the same period. â€Å"? Of the 61,000 convenience stores in the United States in 1985,55 percent sold gasoline, and in 1989, 65 percent of 70,200 convenience stores sold gasoline.In 1989, 75 percent of the new convenience stores built were equipped to sell gasoline. † Although gasoline sales and margins became an increasingly significant contributor to convenience store revenues, contributions of revenue from other merchandise stagnated. In 1985, merchandise (other than gasoline) sales for the convenience store industry amounted to $33. 2 billion. In 1,989, sales reached $40. 6 billion. † This increase in merchandise sales, however, was offset by the large number of store openings. In 1985, the average yearly merchandise sales per store was $544,000.This number increased to only $578,000 in 1989. THE SETTING While flying from Japan to the United States, Takahashi reflected on the success that both Ito-Yokado and 7-Eleven Japan had enjoyed over the course of many years. These achievements were the result of long-term strategies that were carefully tailored to the Japanese market. Could these same, or similar, strategies be the foundation for making Southland financially successful again? He realized that the convenience store industry in the United States was vastly different from that of Japan.Nevertheless, he was confident that, through careful and thorough planning, the goal of making Southland profitable could be achieved. -11 pts if late (after 6pm of due date) and additional -5pts for each day thereafter for max late points of -26 pts. Lists the Strengths / Weaknesses/ Opportunities / Threats for the Ito-Yokado Company (total 10 pts) SWOT analysis. Strengths (list and briefly discuss only 3) 1 pt each for tota l of 3 pts. SWOT, defined as the strength, weaknesses, opportunities and threats is an organizational tool used to analyze core competencies of a business.And like most businesses the Ito-Yokado Group consisting of three business segment (superstores and retail operations, restaurants operations, and convenience store operations) is no different. The strategies used to expand its operations Point of sale register, diversified portfolio, name(branding) and strategic location Weaknesses (list and briefly discuss only 2) 1 pt each for total of 2 pts Opportunities (list and briefly discuss only 2) 1 pt each for total of 2 pts The need for new ideas, real estates, the most vulnerable (younger generation) Threats (list and briefly discuss only 3) 1 pt each for total of 3 pts.The threats faced by the Ito-Yokado Group are: competition from mom and pops store, decrease in disposable income and Large Store Restriction Acts. As discussed in the article, the Large Store Restriction Acts influen ce by rival competitors makes it challenging for the organization to cater to its consumer needs. The result is not only deprived customer, but decrease in revenue, as the laws restrict the size of the store, making it impossible to grow different variety in store products.Another threat is consumer income, the limited consumer income, means consumer has limited amount for discretionary spending. And last but not least is the competition from mom and pops stores. These types of small businesses despite their sizes can pose a real threat for large companies such as 7-Eleven, reason being, is the fact that they are better known and rooted within the community. Essay questions to be answered in detail. (18 pts for each question for total of 90 pts) 1.What were some of the primary reasons for Ito-Yokado's remarkable degree of success during the past several decades? Globalization in my opinion was one of the biggest factors in the company success. Today’s market makes fierce comp etition therefore businesses no longer can afford to operate locally. In order for them to be successful, they must join the rest of the world in forming partnership through Joint Ventures, Franchising, Licensing, and Foreign Subsidiaries. While the advantages of globalization exist, it is not without its disadvantages.The transformation of a company from a local organization into a transnational organization is not an easy task mainly because of the various laws, time, efforts, and monetary investment that one must be able to shoulder before taking on such venture. The factors listed include, but are not limited to political stability, relationship between the two countries, licenses fees, market responsiveness, and the cost can determine the successfulness of a business. In addition, the careful planning and leadership ability can also determine whether or not a business can make the transformation successfully.As a leader one of the primary goals is to have a vision that can be c ommunicated down the chain. And as demonstrated by Ito-Yokado, he clearly demonstrated his vision for the company by strategically expanding the company’s operations into three different segment ranging from retail stores, restaurants chain and convenient stores. The result was a diversified portfolio with increase revenue. Another reason of success can be measured by the risk decision made by the company’s leaders. With any operation whether personal or professional, one must be willing to take isk, a risk in which the benefits outweigh the cost. Although the transformation from the Japanese market to the American was uncertain, because of factors such as consumer responsiveness, income, laws and applicable regulations, the decisions to invest into the various markets was worthwhile all because of proper planning and market response. The result was a successful Ito-Yokado group. 2. How did Ito-Yokado’s 7-Eleven Japan differ from Southland's 7-Eleven operations during the 1980s? While the two shares the same name the difference in their operations where obvious.The 7-Eleven in Japan compared to that of Southland differ in their operation that is, the door-to-door parcel delivery by Nippon, the convenience of bill pay for its customers, faster growth opportunities through franchising. Because of the Large Store Restriction Act, the company was limited in growth to expand its physical location; as a result, they resort to a smaller size stores strategically located in suburban areas. This venture was a deliberate marketing strategy used to penetrate the most vulnerable areas (suburbs) and fight off competitions brought on by the moms and pops stores.While the 7-Japan thrive in its operations of smaller stores with over 3000 items with point of sales register, their counterpart was not far behind. Under the leadership of John Thompson, the 7-Eleven in Southland were able to operate convenience stores with expanded products and services includ ing; low cost gasoline, and prepared food. Despite troubles with the oil industry, the 7-Eleven of Southland was able to form a partner with Oil Company such as CITGO and largest ice producer Reddy Ice. The result was a perfect union that brought about increase revenues.The union however, was short lived, as the company profit plummeted and had to file for bankruptcy. 3. What are Ito-Yokado and Z-Eleven Japan getting for their $430 million? 4. What is your prognosis for Southland under Ito-Yokado ownership? Will Ito-Yokado be successful? Based on the article, it is apparent the management and leadership of Ito-Yokado Group are making the right decisions and stirring the company in the right direction. This is evident through it increase franchising of stores and increase revenue. While the Group might be successful in Japan, areful consideration must be given to the market in the United States. As noted in the reading, the Southland Group under the leadership of John Thompson has ha d its share of misfortune mainly because of the oil industry. The fall in oil prices and volatility of the market resulted in loss of profit and buyout. While the venture of acquiring Southland Group, Ito-Yokado, must ensure it does it homework, with proper study of the US market. They must also, realize that the US market is one of capitalism with fierce competition.Unlike Japan, there are no such rules as the Large Store Restriction Act, as long as the proper conditions are met with the right paperwork, a business can expand as necessary. Another determining factor is the need for the product. yes the idea to expand is great! However, is it cost effective or will the company be better off 5. Is 1to-Yokado a global company? Explain your answer. The answer whether Ito-Yokado was a global company would be yes based on the fact that the company operate in more than one country with various subsidiaries.Ito-Yokado, will be consider Multinational Corporation simply because the operation and production of its products and services were done both in the United States and Japan. In addition the trading of its stocks was offered on both the NYSE, and the Japanese trading markets, thereby influencing the economy of both nations. Another important factor is the fact that nowadays, globalization makes it almost impossible for businesses to operate locally. For this reason they must be willing and able to compete on a global stage with numerous   

Alibaba Essay

He and his team have achieved many firsts’ in the area of Chinese Internet Trade. He founded the first internet commercial website in China, and created a 82B marketplace platform to all small and medium-sized enterprises in Asia and around the world. He promoted the â€Å"Trust Pass† plan on the website, which created the world’s first on-line credit platform for companies. Under Jack Ma’s leadership, the Alibaba 82B websites have attracted more than 17 million registered members in 220 countries globally, with daily postings exceeding 35 million, making Alibaba. om the most active Internet market place and 82B community worldwide. Since the inception of the company, more than 400 media have reported about Alibaba and Jack Ma, in dozens of languages. In addition to numerous awards presented to Alibaba. com, Jack Ma was lso selected by the World Economic Forum as one of the 100 Young Global Leaders in 2001; was named Business Leader of 2001 by Asia Commerc e Association of USA; and was featured on the covers of Forbes Magazine, Nikkei Magazine, and Fortune (China) Magazine. In 2004, Jack Ma was honored as one of the â€Å"Top 10 Economic Personas of the Year† by CCTV. In 2005, Fortune Magazine ranked him one of the â€Å"25 Most Powerful Businesspeople in Asia† and this year Business 2. 0 ranked him 1 5th among â€Å"50 Who Matter Now† and Silicon. com ranked him 1 lth among its top 50 â€Å"Agenda Setters 2006. † company, Alibaba. om builds its business success and rapid growth on entrepreneurship, innovation, and service. Says Jack Ma: The company will remain a ‘start-up’ no matter how long it has been in existence. What ever has been stable, I will disrupt that stability. The company needs to continue to innovate and grow. I want the employees to believe that we are a small company, no matter how big we get. I believe we can create a system and culture to perpetuate this culture of entrepreneurial and start-up spirit. To fuel the entrepreneurial and innovative spirit, along with a service attitude, Jack Ma is looking for people with the following characteristics: 1) People with a dream. â€Å"Don’t let your colleagues work for you. They need to work for their dreams! † If people don’t believe in the dream and Join the company purely for money, they won’t stay long (refer to Appendix 2 for Alibaba’s vision, mission, and values). 2) People with shared values. â€Å"The value system is very important at Alibaba. We are crazy for it! In China, we might be the only crazy company who so strongly maintains our value system. People who don’t fit our values cannot survive in the company. † (Alibaba’s six ore values are customer comes first, teamwork and cooperation, embracing change, integrity, passion, and honoring your Job). 3) People with a smile. â€Å"When we hire people, we look for people who are naturally optimistic and happy. In the start-up process we will meet with difficulties and challenges. Optimistic and happy people can better deal with these challenges and succeed. It’s hard to make a happy person unhappy, but it’s even harder to make an unhappy person happy. I am able to tell whether a person is on our staff by their smile. † 4) People who enjoy work and can turn stress and challenges into innovation. Employees must be able to handle pressure and challenges, and turn them into positive energy for innovation, not negative energy for depression. † 5) People who work together. â€Å"We don’t welcome people who think they are smart because they may think they are above others. This industry is so new that it really doesn’t have any real talents. The people who are real talents probably don’t know they are talents. Everyone has tremendous potential. We all use other people’s strengths to overcome our weaknesses We are all ordinary people, but our goals are extraordinary. † While Alibaba seeks people with strong rofessional skills, these characteristics are even more important in deciding whether a person will Join, stay, and enjoy working in the company. 2 Alibaba’s Unique Value Proposition † a Smiling Community with a Dream While Alibaba is clear about what kind of talent they need for business success, the question is: how can the company attract, retain, and engage such talent, especially in the startup stage, when Alibaba had limited resources? The answer is a dream, a dream to make a difference in the way people do business, and a dream to create wealth together. During the start-up stage of Alibaba, Jack Ma often told those nterested in working for Alibaba, not of the great working conditions or the high pay, of what they could earn elsewhere. Alibaba also strives to provide a community, where employees can have fun to work together to pursue their dreams with minimal bureaucracy and politics. Ma recently painted a vivid image of his ideal work environment for his employees as follows: Blue Sky Processes, systems, and decisions need to be open and transparent. There’s nothing that should be hidden from employees. We should be transparent. Solid Ground Everything we do should be honest, ethical and contribute to the welfare of the ociety. The company should be on solid financial ground so employees won’t worry about the financial future of the company. Free-flowing Ocean Talent must be allowed to rotate Jobs across subsidiaries and departments. Green Forest (R Conducive conditions for continued innovation. Harmonious Community Peers with shared values and simple interpersonal relationships. The ultimate objective of such a community is to offer employees a work environment to grow, contribute, and live out their dreams. Bureaucracy, secrecy, and stagnation are all attributes that inhibit employees, and the company must actively seek out these ehaviors and destroy them. Alibaba from the Eyes of Employees To what extent do employees at Alibaba experience what the company intends to offer? Why do they Join the company and how do they feel as employees working there? Our focus group discussion with employees in different functions and levels confirms that Alibaba is indeed a unique company to work with. The following themes and direct quotations capture their experiences and the feeling of working at Alibaba: A leader with charisma and credibility: Jack Ma is the magnet that draws people into the company and provides them with a credible dream. â€Å"When I spoke with Jack Ma, I was impressed with his vision and business model. I had been in the internet business for a while but had not seen a successful model like the one Alibaba is employing. † Tang Zhenrong, International Website Engineering Department, and one year with the company. Although the objectives for each year seem to be very high, somehow we have always managed to accomplish those objectives. With past success, we have built up confidence that we’re able to achieve the objectives no matter what they are. † Lili Li, Sales Research Department, six years with the company. The passion of Alibaba is from within and radiates outward to others. We can see that they truly believe in the company and the culture of Alibaba is built from there, not by programs or processes. † Echo Lu, Director of Organization and People Development. â€Å"The company is true to its values at all levels. When Jack Ma talks to management about hiring, he told us that we must hire people With the same smell. Zhang Yu, Director of Marketing, Taobao. com Changes, challenges, and growth: People grow under tremendous pressure to change and grow. â€Å"The speed of change is three to four times that of other organizations. The objectives are ‘crazy, but when we reach and surpass the targets, we then have a profound sense of accomplishment. With the constant pressure and changes, we’re also forced to evaluate how we do our own Jobs and how we work as a team. Is it sufficient to accomplish the new objectives? Do we need to look at the challenge differently and try different things? † Zhang Yu, Director of Marketing, Taobao. om 4 Communication and transparency â€Å"Jack will meet with all new employees in a group setting, has meetings with management at least quarterly, and bi-annual staff meetings with all employees. On the intranet, there’s a BBS that allows staff to post their thoughts and opinions. Jack often interacts with staff on the BBS in an open and casual way. † Echo Lu, Director of Organization and People Development A company that cares about employees â€Å"During the SARS crisis, because of one suspected case, Alibaba made the decision in one day to have all employees work from home and to pass the required isolation period. As a result of this quick action, we contained any possible outbreak, May. Employees continued to perform Jobs tremendously well at home. We encouraged each other through BBS, phone calls, and e-mails. † Lili L’, Sales Research Department â€Å"The most positive thing to result from the SARS crisis was an enormous amount of pride for employees who went through this crisis together. They built a strong bond through experiencing this event together. It’s still a much talked about event in the company. In fact, some employees have named the day that staff were sent home to contain the outbreak, Alibaba Day, to commemorate the event. The spirit of Alibaba came alive on that day. † Echo Lu, Director of Organization and People Development Leadership and Management Practices that Create the Unique Value Proposition Leadership priority: As CEO, Jack Ma invests most of his time in three areas: vision/ mission/strategy, customers, and employees. By clearly articulating and constantly communicating the vision and mission of the company, he creates the most important foundation in attracting outstanding talent. â€Å"Don’t let your colleague work for you, but work for their dreams! Also, it is important to deeply understand customer needs, not competitor’s actions. Understanding customer needs can help Alibaba develop concrete business plans and focus on realizing its dream. Finally, it is also critical to realistically assess the competencies of employees. It will decide â€Å"how fast,† â€Å"how far†, and â€Å"how’ the company can execute its business strategy and targets in the coming year and next three years. His attentiveness to talent is reflected in two management practices. First, in the monthly senior management meeting, the first question he always asked is â€Å"How is your team doing? † instead of â€Å"How many sales has your team made? † Second, he always spends a lot of time alking around different business units and departments to â€Å"smell† how the people are doing there. If he â€Å"smells† something wrong, he will immediately talk to the unit head to identify problems and improve the situation. As a matter of fact, all senior executives at VP level and above must develop such â€Å"smelling† skills at Alibaba, to make sure that people are being managed properly. Value alignment: Strong shared values are essential in building a harmonious community where people feel comfortable working together and in ensuring that decisions and behaviors are aligned with company direction. Alibaba has gone the extra mile to make sure that people share the same values. When Alibaba hires people, they look for people with th e same â€Å"smell†Ã¢â‚¬ people who are optimistic, happy, team oriented, hard working, and willing to invest their lives to achieve an ideal. When employees Join the company, they attend at least 10 days of orientation, focusing primarily on the company’s vision, mission, and values. When the company assesses the performance of employees, 50% is tied to values and 50% is tied to business results. When employees demonstrate behaviors contrary to company core alues, they are asked to leave no matter how strong their business results are, or very important at Alibaba. People who don’t fit into our values cannot survive in the company. † Stretch opportunities and challenges: While Alibaba offers different training programs for different levels of employees in both technical and management areas, people grow rapidly by achieving â€Å"impossible† targets year after year. Although the objectives for each year seem high and unreasonable, somehow, we have always managed to accomplish those objectives. With past success we have built up the onfidence that we are able to achieve the objectives, no matter what they are,† says Lili Li, of the Sales Research Department. â€Å"At Alibaba I have been stretched and challenged. I have seen myself grow m ore than in my previous Jobs,† says Zhang Yu from Taobao. com. Indeed, Jack Ma believes that all people have potential that can be unleashed in the right environment, allowing them to stretch and challenge themselves. Ma quoted one of his favorite examples, â€Å"Several years ago when I looked at the current COO Li Qi, there was no way he looked like a COO. Nowadays, from all different angles, he really looks like a COO. Talent has tremendous potential to grow. † However, in order for people to grow under challenges, three elements are important. First is teamwork. Alibaba uses teamwork to complement individual strengths and weaknesses to achieve extraordinary goals. Second are the right people, who enjoy challenges and have fun working. Third are line managers who are accountable for personal growth within their teams. Jack Ma remarked that all line managers at Alibaba are entrusted with two scarce resources (capital and talent) to create value for the company. In addition to ensuring good financial returns, they lso need to create value for their talent in terms of their growth and retention. That’s why Jack Ma also walks around the company to â€Å"smell† how people are being managed in different departments, and why he always asks business leaders how their teams are doing in the monthly CEO review. Wealth creation and sharing: All employees of Alibaba receive stock options, and in effect are owners of the organization. At Alibaba, stock options are not a tool for retention but for reward sharing. From five cents per share to five dollars per share in 6 years, many employees have not only shown tremendous pride in the company but also shared the fruits of their collective success for the well-being of both the society and themselves. Transparency and communication: Communication is an important practice within Alibaba that helps maintain a culture of transparency to all employees. Employees have easy access to all executives, including Jack Ma, through the use of email, BBS, and face-to-face meetings (monthly, quarterly or bi-annual staff meetings). Jack Ma sets a high standard for his executives to follow by regularly interacting with employees. â€Å"All decisions are transparent, and people can see how they are made. This transparency is getting somewhat lost as we get bigger, but we’re still given a lot of information when possible. Our trust in the leaders has helped us to overcome this change in transparency. Communication is always good and strong from Sales Research Department. Advice to other CEOs When asked about what advice he would like to offer to other CEOs in China, Jack Ma suggested four: 1) Always believe people are the most important asset, and capital comes second. 2) It is not necessary to find the â€Å"best† talent but the talent that best fits your company. 3) Find and groom the talent inside our company rather than keep searching for talent from outside. The best talent is home-groomed people who fit our company culture. It always takes at least three years before people become fully immersed into our company culture 4) Believe in the potential of talent.

Rammed Earth Essay

Despite Rammed Earths extensive use throughout history, its use is still not so popular within the UK. Reason for this is largely due to architects/ Builders not knowing enough about the material and sticking to the familiar concrete, timber and brick ways that they know, rammed earth can often also be perceived as having cruder finishing and not in keeping with the clean-sharp lined finished which are so often preferred in today’s architecture- Though with the appropriate shuttering clean finishes can be achieved. Building with rammed earth is considered to carry greater risk and uncertainty, the material is yes, more suited to arid climates, but even in arid climates modern method of construction using rammed earth are being continually tried and tested e. g. in Australia. Rammed earth is a perfectly viable and good material to be used within the UK – there is a need to get past the reluctance to use and experiment with it more here – the climate presents a challenge which can be won in innovative ways. [pic] The Use of Rammed Earth within the UK

Teenage Drinking and Driving Research Paper Example | Topics and Well Written Essays - 1250 words

Teenage Drinking and Driving - Research Paper Example A research conducted by CDC in 2008 revealed that, almost 3,500 teenagers who were between the age bracket of 15 and 19 died because of car crashes. Furthermore, 25% of the deceased teens involved in those accidents tested positive to high levels of alcohol count in the blood system (CDC ). Drinking among teenagers is due of immense peer pressure among the concerned age group. Most of the programs aired in the media tend to lure teenagers into drinking since they fail to highlight on the multiple catastrophes of alcohol. It is therefore evident that drunk driving kills’ people, people become used to drunk driving and people often lose control while driving. One of the causes of teen drinking in USA is the individual’s urge to be rebellious. Most of the accidents correlated to drunk driving are because of teenagers’ rebellion. Some other acts of rebellion manifest through teens staying out past curfew or ditching classes. Universally all teens are famous on their rebellious acts of defying authority (Thompson 16). There have been several engagements targeted at advising youths against alcoholism, but the rebellious nature f the youths have overridden the efforts. Teens have a tendency of swanking of how they manage to drink and drive as long as there are no negative consequences suffered. Although society views drunk driving as a serious social epidemic, teenagers view it as a comfortable way of massaging one’s ego thus molding and directing them to the path of defiance. When in adolescence stage, teenagers undergo a period when a chemical substance in the known as dopamine is in its highest activity. Dopamine is responsible for most of the youth desired experiences like pleasure and feel of reward (Sifferlin). Coupled with poor ability to respond to impulse, teenagers end up indulging in undesired behaviors such as driving while drunk, which they view as pleasure. The second cause for the unnecessary phenomenon of drunk driving among teenagers is their reluctance to stop this epidemic. As teenagers, they themselves play a part in the dominance of this social hardship. Teenagers let it happen; they let the river take its cause. Presently, teenagers have a problem of failing to speak out against drunk driving among teenagers. As compared to the previous generations, teenagers of this era tend to maintain silence even when driven by drunk drivers. A further research conducted by Centers for Disease Control and Prevention (CDC) shows that in 2007 alone, almost three out of ten teenagers within the US reported cases of being passengers driven by drunk drivers. Teenagers are exposed to lengthy risks since they are afraid to speak out against drunk driving thus endangering their own lives and the lives of other passengers. Through the actions of teenagers failing to speak up and say NO against teen drunk driving; they are obliquely and inadvertently accommodating the actions committed by the drunk drivers. By acceptin g such social affliction, the teenagers create a dangerous cycle whose epitome is drunk driving among teenagers (Kelli and Traci). Since their peers fail to mention negative remarks against drunk driving, other teenagers tend to assume that driving under the influence of alcohol complies with the social norms set by the society in general. The act of failing to speak against the social affliction is in itself a representation of

Nursing Research Article Example | Topics and Well Written Essays - 500 words

Nursing Research - Article Example There are a number of studies that have been used in the analysis of comfort care in various nursing homes. The author begins by stating that various nursing homes are the source for care amongst various old people in the society. The paper presents an orderly and informed review of the existing literature and theory that gives the basis of the study. The paper is a descriptive and exploratory study that involves different qualitative methods and the semi-structured in-depth interviews with the staff members of a single nursing home. The open ended questions are good given that it gives the respondents an opportunity to explain their ideas. The only weakness at the point is the failure to include other organizations. The structured open ended questions were used in the collection of data. Questions in education, professional experience and intervals were the topical basis by which the respondents provide the end of life care. One of the main strength of the study was that it was audiotape recorded and therefore can be easily traced and tracked. The application of the grounded theory provided a further analysis of the study. The involvement of forty two staff members is a good representation of the entire population. The inclusion of the nurses, administrators and certified nursing assistants, housekeepers and social workers represents various groups of people that are directly impacted by the study. The paper prepared reasonable documents that requested for the respondents acceptance during the study. The entire reason for the study was explained to the respondents. There ethical documents were also prepared and approved before the real study was conducted. The author presents a clear understanding of the concept. The paper shows interlink of the existing literature review and the results. The study also is also precise with regards to the analysis of the data collected from the respondents. With the constant increase in the number of

God of carnage Essay Example | Topics and Well Written Essays - 500 words

God of carnage - Essay Example They would have probably never met each other if not their kids. The thing is on November 3 Ferdinand struck Bruno in the face and knocked out two of his teeth. This was the reason why the families of Vallons and Reilles met later that day at Vallons place to settle the case in a civilized and diplomatic manner. However, step by step the conversation between parents spun out of control and they started pointless argument screaming and swearing at each other by the end of the night. Alain is a well-to-do lawyer and Annette is a housewife who is managing the wealth of their family, as she herself characterizes herself. Michel is a second-rate wholesale dealer and his wife, Veronique is currently endeavors to write a book about Darfur, a war-ridden Sudanese province, and works at a bookshop part-time. The way Michel describes his occupation makes one feel he is a loser, "its never exactly been a bonanza" (Reza 9). Alain anticipates such a characterization by asking Michel arrogantly and without scruple on how successful he is, "Money in that, is there?" (Reza 9). Alain himself is a successful lawyer but, although he behaves quite arrogantly, he is tight-lipped and modest when being asked about his profession. As to his occupation Alains reply is confined to a couple of words, "A lawyer", which only underlines his awareness of being a well-to-do and respected man (Reza 6). However, the only thing Alain seems to care about is his job. Even Michel wife cant help telling him, "I dont understand why you dont seem to care about this", when he doesnt take an active part in bickering about his own son with her (Reza 20). Alains wife, Annette, is a woman who easily loses her temper and the little things of life often make her depressed. When the conversation between the parents went out of control and they failed to find common ground Annettes husband said that he is not

Hurco Essay Example | Topics and Well Written Essays - 750 words

Hurco - Essay Example Hurco Inc. specializes in providing customized automated programs to the metal industry. Their products cover interactive personal computer (PC) based control systems and software to aide their machine tools (â€Å"Investors – Corporate Profile†). On the other hand, as other market players, Hurco also offers sale and aftersale service. It is important to note that where other firms in the IT industry offer products compatible with the tools and machinery used by their customers, Hurco Inc. has a primary product line comprising machinery tools meant for the metal industry, and software as a peripheral product. Their products are meant to enhance productivity and efficiency in the operations of their customers by introducing user-friendly automation. Their core competency comprises specialization in microprocessor technology and software meant for machines tools used in the metal industry. In addition, interactive programmable software patented by Hurco allows users of th eir programs to produce peripheral software that can be either made part of an actual program through blueprints or computer-aided design and ensure speedy production processes without interruption, with maximum efficiency in operations (â€Å"Investors – Corporate Profile†). ... Due to customization available according to customer’s needs, Hurco is able to cater customers all around the globe. However, they have solely focused on the metal parts industry, which makes them a niche player. Hurco’s strengths and weaknesses along with industry attractiveness can be analyzed with the help of Porter’s five forces analysis. It is important to note that Hurco’s product line comprises machine tools that are considered as capital products or goods. The cyclic nature of the industry makes manufacturers in it highly vulnerable to market changes (Hurco Inc. 2). For supplies, Hurco relies on foreign suppliers and also their own subsidiary (Hurco Inc. 24). Presence of a fully-owned subsidiary makes them less susceptible to delays that can be caused by failure of other suppliers to meet the deadline. On the other hand, buyer’s power leaves Hurco vulnerable. It is important to note that the metal tools industry is greatly dependent on econo mic conditions prevailing in the industry. Therefore, limited buyer’s purchasing power also leaves Hurco to reduce its profit margins. Hurco also faces tough competition in the industry of machine tools. There are quite a few major competitors in United States and many in other countries that have better resources and a bigger capacity of utilizing economies of scale, which makes them capable of providing products that are cheaper than Hurco’s (Hurco Inc. 7). A threat of new entrants will always be faced by Hurco, as any other manufacturer. Although Hurco has patented its programs, there are a large number of IT firms that can provide automated solutions to companies using manually operated machines such as the ones provided by Hurco, without any major

Forensic-MT Essay Example | Topics and Well Written Essays - 500 words

Forensic-MT - Essay Example As the U.S. corporate sector reporting is plagued with continuum of frauds and deliberate accounting errors and manipulation and most of these cases are pending in the courts for due decisions. The need for forensic accounting becomes undoubtedly at its peak as accountants and lawyers seek supportive evidence which is rather factual rather than opinion based. The legal proceedings have become lengthy and complex as businesses and transactions are becoming complicated with too much information in terms of the ways they are carried out and information related to them is dispersed and difficult to gather. Forensic accountants or lawyers need to be competent and knowledgeable to identify weaknesses in the reporting system and prepare the factual documentation regarding an issue or a transaction which is being challenged in the court. The role of companies audit committees and external auditors are challenged by plaintiffs including regulatory bodies, stakeholders, creditors and general public in fraud cases. The outcome of this severe criticism was the introduction of the SOX 2002. The SOX requires auditors to carry out their audit engagement responsibilities in accordance to the ‘auditing and related professional standards’ laid out by PCAOB (PCAOB, 2004). Companies hire forensic accountants not only to provide litigation support but also to help them in managing their internal reporting. Auditors are now required to audit management’s assertion on the effective of internal controls over financial reporting (PCAOB, 2007). Information systems are integral part of internal reporting and data should be made accessible to auditors who need to carryout tests to assure the effectiveness of the system and completeness of information managed and generated. Additionally, auditors should acquire written confirmation representation of control

Study of Service Quality Management at Hotel Casino Dissertation

Study of Service Quality Management at Hotel Casino - Dissertation Example Various models of service quality are observed for the criteria of quality assessment that identify the ways of improving the service such as through customer segmentation and targeting for customization of service and promotions, frontline employee and management training and motivation schemes, focusing on the servicescape or implementation of customer relationship management databases and systems that further help to adopt loyalty appreciation schemes. Service quality is of immense importance because high service quality leads to greater customer satisfaction, which in turn increases customer retention that helps to develop a sustainable competitive advantage in the fast growing competitive hotel casinos business. ACKNOWLEDGEMENTS I express my heartfelt gratitude to all those who contributed to the successful completion of this dissertation. Specially, I would like to thank Macau's Landmark Hotel's Casino's Manager, Ms. Choy Man Yee, Casino's Supervisor, and Ms. Choy Siu Wah for t heir cooperation, support and time to provide me with the relevant details needed to accomplish the task effectively. Also, I extend sincere thanks to my course instructor whose guidance helped me to make this dissertation meaningful. I apologize, in advance, for any errors or omissions on my part in the composition of this dissertation. ... Servicescape 34 9. Customer Information 36 10. Conclusions 38 11. Recommendations 39 12. Bibliography 40 13. Appendix 44 List of Figures Figure 1: Service Quality Components†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....8 Figure 2: The SERVQUAL Model in the Hospitality Industry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...12 Figure 3: Quality inconsistencies drawn from various literatures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..15 Figure 4: Service Gap Model†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..16 1. INTRODUCTION 1.1. BACKGROUND AND CONTEXT In the recent years gambling tourism has been the greatest revenue generator for Macau contributing up to more than 50% of its revenue. With the boom in the gaming industry and advent of internationa l casinos in Macau particularly from Las Vegas and Australia, Macau has beaten Las Vegas in terms of revenue generation from the gaming business since 2007. Providing quality service to these customers to beat one’s competitors, in order to achieve customer loyalty has now become the major concern and a topic of hot debate for every casino’s management. The major customers for Macau’s casino businesses are from China and Hong Kong along with other international tourists. With the high rising competition among the casinos, keeping up sustainable profits and revenue, along with a reasonable market share has become a major challenge for the casino management. The only way this seems possible is by shifting from a customer attraction strategy to a more viable, profitable and easier, customer retention strategy. Customer retention i.e. holding on to loyal customers to maintain an influx of a sustainable revenue stream, is possible only by providing quality service th at beats the service offered by the competitors

Thailand Research Paper Example | Topics and Well Written Essays - 3000 words

Thailand - Research Paper Example Poverty level in the country has declined by a big margin. Nevertheless, economic inequality has dramatically increased (Mason 278). The economic progress in the country is evident in the continuous improvement of the non-economic indicators that translate to the well-being, like, life expectancy, infant and maternal mortality rate, and literacy levels. However, the country has not recorded good progress in the education system. It requires reforms in several areas like in the political and corporate governance in order to have a smooth run in economic progress. Introduction Thailand has been among a group of East and Southeast Asia that have formed the center of research because of their outstanding economic performance. She forms part of discussions and is a determinant of economic growth. Just like the other economic pacesetters of Asia, Thailand has employed the common development strategies and their immediate outcomes have not been much different (Brewer and McEwan 123). The co untry has prospered under the globalizing strategy. It lies in the middle-income developing countries in several aspects like; the country was never colonized. This is a unique experience in the states of South East Asia. The country has also been courageous to embark in trade and investment integration with the rest of the world. These interactions in conjunction with macroeconomic policies have steered Thailand towards economic stability. Long-term developments In 1945 at the end of the Second World War Thailand was among the poorest countries in Asia. Its economy remained stagnant for about a century since it had greatly suffered from the war damage. Many economic analysts rated the country as poor. However, in the mid of 1990s, roughly a half a century later, the country replaced all these negative assessments by dramatic economic progresses, following the foot steps of Korea, Taiwan, and Hong Kong. Thailand within a short span achieved a rapid economic growth, macroeconomic sta bility, and a steadily declining poverty rate. These made the country acquire consideration as a champion of sustained development (Chaloemtiarana 79). Thailand’s long-term economic developments have had a unique character of high levels of investment and deep trade with world countries. Thailand has maintained an economic stability for a long time, since it has never recorded a negative growth for the last four decades. Thailand’s economic growth is worth emulation starting with its central bank, which got awards for having the most competent and stable management. The crisis that occurred in 1997 to 1998 reversed the country’s fine economic progress and poverty incidences began rising. The exchange rate collapsed and the financial system was largely bankrupt. The economic damage due to this crisis was substantial. It eroded some of the gains that Thailand had made (Mason 312). Since the start of the crisis, Thailand’s economic recovery was moderate and her real GDP was slightly below the log-term trend rate. However, the main question as at now is; where did this rapid economic growth source from. The growth framework has focus on the determinants of aggregate supply as relevant on the specific periods. The Thailand’s impressive growth lies on the primary growth of capital stock. The domestic and foreign investment grew rapidly, but the growth rate for the foreign investment was more rapid. This foreign investment has played an important role in introducing new technology and development of export market. The quantitative importance of foreign investment in Thailand’s capital stock accumulation is prone to exaggeration. The main factors that have contributed to the Thailand’

What are the effects on developing countries of integration into the Essay

What are the effects on developing countries of integration into the global economy - Essay Example However, there are many challenges experienced with the global integration of the economy. The developing countries are the most affected because of the competition, unequal economic strength, and level of developments. Their level of growth is not same as the first world nations making third world nations lag behind in terms of infrastructure provisions among other things. Hence, developing nations experience stiff competition from the developed nations that has sophisticated equipment and tools of the trade to leverage them. Moreover, the integration of the developing nations into the world economy creates imbalance owing to the nature of industrialization in the first and third world countries. Therefore, developing countries are harmed by the integration of the global economy because they have very little to offer on the global market compared to the developed nations. The rest of the paper will examine the effects of integrating developing countries into the global economy. The integration of third world nations into the global economy has facilitated the flow of capital from the developed or middle economic nations to the developing world countries (CEPAL 2). Today, many third world nations have developed economic trade ties with major drivers of world economies that have seen the flow of capital. Before the integration, developing countries had no option of getting circulating funds because of their insignificance in terms of contribution and share in the global economy (CEPAL 3). Similarly, many developing nations are receiving cash flow in terms of grants, soft loan, and donation, which help in steering development projects. Different oversea agencies such World Bank among others assist the developing nations in overcoming their financial challenges as well as initiating development projects. However, the increased capital flow does not only contribute to

Analysis of the Story Doctor in the House Essay Example for Free

Analysis of the Story Doctor in the House Essay The story to be analyzed is entitled â€Å"Doctor in the house† written by Richard Gordon. He also wrote several novels and screenplays dealing with practice of medicine. The extract is about passing oral and written exams on medicine. The author describes the way how the main character passed his examinations. He considered it to be death. A lot of images can be found in the text. They create atmosphere of a contest, a court, musical playing. The author emphasizes the inevitability of meeting Secretary to hear the sentence In 1952, he left medical practice and took up writing full time. He has an uncredited role as an anesthesiologist in the movie Doctor in the House. The early Doctor novels, set in the fictitious St Swithins, a teaching hospital in London, were initially witty and apparently autobiographical; later books included more sexual innuendo and farce. The novels were very successful in Britain in Penguin paperback during the 1960s and 1970s. Richard Gordon also contributed to Punch magazine and has published books on medicine, gardening, fishing and cricket. The film adaptation of Doctor in the House was released in 1954, two years after the book, while Doctor at Sea came out the following year with Brigitte Bardot. Dirk Bogarde starred as Dr. Simon Sparrow in both. The later spin-off TV series were often written by well-known British comic performers. Doctor in the House begins with the lead protagonist getting into a fictional medical college in London, St. Swithins. He collects a handful of faithful friends, including Grimsdyke, whose main aim to remain an eternal student as his aunt has left a large legacy in his name, for the duration of his course (as the funds will cease once he qualifies, he prefers to fail every examination). The book goes through the trials and tribulations of their college lives-sports, studies, spats with teachers and love affairs. Snippets like using a human skull as an ash-tray and trying to weasel out of tight situations in examinations will strike a chord not only in every doctor and medical student, but also in anyone who has ever attempted an examination! In one of my favourite incidents, Simon (the hero) is asked to check a patient’s eyes with an ophthalmoscope. He says ’’I always intended to find out how this thing worked, but never got around to doing it’’ Further, on checking the patient’s eyes, his comment was that ’’it looked like fishes swimming in an aquarium full of murky water.’’ Luckily for him, he was able to wriggle out of the situation by a simple trick, and eventually passed the examination! The book is full of incidents like that, and will keep you laughing page after page. When I finished the book, I felt a vague disappointment that it was over so soon! There is a little flirting, but nothing that even an adolescent reader’s mother would censor. Hindi films are a lot worse!! So if you havent been exposed to Richard Gordon yet, this is a good time to start. This is the original book in the Doctor in the House series and deals with his medical training. The Doctor books were written as memoirs, a fiction continued by the author and main characters name being the same. In reality, Dr. Richard Gordon Dr. Gordon Ostlere, a highly-qualified surgeon and anaethetist and contemporary of my uncle who was a reknowned anaethestist himself but I didnt know that at the time. Humourous stories of young doctors at medical school. A series of films were based on the Doctor books, and a television series as well. This one was first published in 1952. Product Description Richard Gordons acceptance into St Swithans medical school came as no surprise to anyone, least of all him after all, he had been to public school, played first XV rugby, and his father was, lets face it, a St Swithans man. Surely he was set for life. It was rather a shock then to discover that, once there, he would actually have to work, and quite hard. Fortunately for Richard Gordon, life proved not to be all dissection and textbooks after allThis hilarious hospital comedy is perfect reading for anyone whos ever wondered exactly what medical students get up to in their training. Just dont read it on your way to the doctors! About the Author Richard Gordon is best-known for his hilarious Doctor books and the long-running television series they inspired. Himself a qualified doctor, he worked as an anaesthetist, ships surgeon and then as assistant editor of the British Medical Journal before leaving medical practice in 1952 to take up writing full time. Many of his books are based on these experiences in the medical profession and are all told with the rye wit and candid humour that have become his hallmark.

Inter Professional Practice In Health Nursing Essay

Inter Professional Practice In Health Nursing Essay Inter-professional practice includes benefits that help to improve the provisions of health and social care services. One of these benefits that derive from inter-professional practice is that it increases the number of professions, which means that all aspects of service users who have multiple needs requiring different specialists are taken into consideration rather than neglecting some aspects. E.g. an individual who was a victim of domestic violence and had sustained physical injuries would not only receive treatment for the physical injuries but also receive counselling for their emotional needs so that they are healed holistically. By increasing the number of professions also allows health and social services to be able to deal with complexity. This is because of the different qualifications, skills, knowledge and expertises each professional has which not only reduces workload creating less stress but make difficult tasks achievable. Likewise errors made by some professionals can be quickly identified and rectified by others reducing risks towards patients/users e.g. a physiotherapist may fail to provide treatment to a patient which a nurse can pick up on. Professional roles in relation to health and social care provision entail the responsibilities and duties of a professional towards their patients/users. This includes jobs that they have to perform that fits into the specific professions that they have been qualified to do. E.g. the role of a nurse is to provide care for their patients. Professional principles are the rules and regulations that act as a guideline by defining the boundaries/perimeters of what is inclusive and expected of professionals due to the nature of their work, which in terms of the health and social care provision is to provide patients/users the best quality care/services they need to function properly. It also stresses out the legal requirements these professionals need to have in order for them to carry out practice such as the type of qualifications that they need. These principles are set out by professional bodies within certain organisations to act as a guideline in order to maintain the high standing of the profession. E.g. the Nursing and Midwifery council (NMC) regulates nurses and midwives by having codes of conduct which informs nurses and midwives on how to care for their patients by treating them as individuals, giving equal opportunities regardless of their gender, race etc. Professionals within health and social care services use inter-professional working to improve the quality of care that they provide which in turn enhances patient/users experience as their level of trust increases, restoring their confidence further motivating them into using their health and social care services. For example, if it was just one professional available to care for a patient/user with needs that goes beyond the expertise of their profession, the patient/user wouldnt want to use that service as they feel that the professional is incapable of providing the necessary care that they need. However if they know that other professionals can be involve in their care, they are empowered to use the service and get the help that they need. With the level of trust and confidence patients/users develop in their care services due to inter-professional, this enables professionals to creates alliances with their patients/users as these patients/users know that for the professionals to be collaborating, they are being put at the centre of service provision to ensure that they receive a high standard of care. Taylor (2000) defined reflection as throwing back of thoughts and memories, in cognitive acts such as thinking, contemplation, mediation and any other form of attentive consideration, in order to make sense of them, and to make contextually appropriate changes if they are required. This help us to think critically of situations where we might find ourselves in enabling us to make the changes needed to improve certain aspects of ourselves especially in our professional life as it helps to maintain a high standard of work. Reflection also helps us to pick up on errors and ensure that they do not reoccur e.g. a nurse who might not have used effective communication with one of their patient, such as not letting the patient know that they were about to give them an injection. Through reflection, the nurse would know where they went wrong and make certain that they use effective communication which is informing the patient before carrying out any procedure. In this reflection, Ill be referring to the Marks-Maran Roses Reflective Cycle (1997) to explore and highlight areas within a specific event for me to make any required changes. The cycle consists of an explanation of the event, my thoughts arising from the situation, how it relates to theory and how it can be applied into practice. The inter-professional learning is based on a session which I (a student nurse) took part in with my student peers from different professions consisting of a student; social worker, physiotherapist, radiotherapist, pharmacist and three other student nurses. The session was based on a case study about a girl named Millie, who has Downs Syndrome and also a long term boyfriend and wanted to go on the Contraceptive Pill. We had to debate about whether it was in her best interest to start taking the pills or not. My team had to debate against Millie going on the pill, for this my team and I used different skills such as communication, listening, information gathering and teamwork skills in order to achieve the main aim of the task. I made use of my communication skill by interacting with my student peers within my team and the opposing team to discuss about the evidence gathered and our own view of the situation. Communication involves a reciprocal process of sending and receiving message between two or more persons. Sellman and Snelling (2010). For the other opposing team to hear our side of the debate we had to be clear, precise and concise so that they are able to give feedback to show that they understood our arguments. I made sure I used the right tone of voice by sounding calm and collected in the manner in which I delivered my speech, by keeping the pitch of my voice moderately loud enough for others to hear me without sounding aggressive, even though at some points of the debate the level of my voice was slightly high when some members of the opposing team became hostile by shouting over my team. I felt that this skill was used appropriately and effectively even though there were times were it lacked consistency. This is because I have learnt that communication does not only involve using words, signs, language, tone, speech etc, it also consists of body language e.g. how you face an individual during a conversation. I also noticed that others in my team positioned their body away from the rest of the group which looked like they werent interested or wanted to be part of the team. This has made me more conscious of my body language when communicating with people so that I dont give the wrong impressions. This skill would be beneficial when applied into practice, importantly in inter-professional working as my role of a nurse involves working collaboratively with other professionals to provide care for certain patients e.g. working with dieticians, radiotherapists, radiologists etc. With effective communication, service users are safeguarded and protected against potential risks they may be exposed to by reducing the number of errors that may occur. For instance, a GP might have prescribed the wrong dosage of medication to an individual, the pharmacist is able to pick up on this and get in contact with the GP. Active listening was shown through feedbacks and contributions which also showed my level of understanding and that of my team members, however if going through what the opposing team had said did not make sense we asked them to repeat themselves. In support to this, Hoppe (2006) suggested that reflecting the other persons information, perspective, and feelings is a way to indicate that you hear and understand. This helped lessen the level of confusion through misinterpretations which the opposing team seem to have had a problem with, as a member of their team kept answering their question that was meant for our team or our questions were not being answered. I have learnt that it is important to actively listen to people as it is the key to effective communication in receiving information, which in turn enables individuals to grasp hold of messages immediately rather than allowing the other person involved to keep on repeating themselves delaying response or action. In practice, this skill would help me to understand patients clearly as it will allow me to pick up on underlying issues which may go unnoticed, for this you must listen to the people in your care and respond to their concerns and preferences (UK Nursing and Midwifery Council 2008). This helps to reduce the likelihood of incidents occurring especially in healthcare such as sending a patient home when they tell you that they are unwell and when they do go back home they are found unconscious or dead. Information gathering was used in this session as we were asked to conduct a research about literatures that were against the contraceptive pill and those that supported it. Because information gathering is also known as research which seeks to make known something about a field of practice or activity which is currently unknown to the researcher (Brown and Dowling 1998), so by looking at various sources; journals, books and the Web rather than focusing on one source for information. This allowed my team and I to collect a wide range of information that targeted different areas of the topic, such as the effect of the pill on a Down syndrome woman and her mental capacity in relation to the Mental Capacity Act 2005 which tries to empower and protect vulnerable people who are unable to make their own decisions (UK Department of Health 2005) and it seemed like Millie was not in the position to make rational decisions due to her disability as one of the symptoms of Downs syndrome is the d ifficulty to understand why they have made certain choices. This skill would be useful in the health and social care sector where me as a health practitioner would need to be able to gather information on services users background on past medical histories by knowing how to source them electronically via the computer, folders and even the patients themselves so that me and those involve in the professionals have an idea of how best to provide effective care. Teamwork involves a group of people working together towards an aim, in my group we supported each other by reading out our literatures based on our research such as statistics and government Acts if we thought that they needed help so that we come out stronger in the debate. Because of lack of teamwork the other team seemed to have struggled for their members were left on their own to argue our points without any input from the rest of their team. I think that this skill is one of the attribute a professional need to have when working collaboratively with other professionals; this means professionals helping each other especially in areas that others may lack in knowledge, understanding or unable to cope by themselves. In health, this ensures that patients/users needs are not neglected by making sure that they are at the centre of service provision by everyone working together as a team. With this skill I have learnt that in order for one to become successful in their work, they have to work with others as effective teamwork is being dependent on each team member being able to anticipate the needs of others (Alonso and Dunleavy 2012) for them to successfully achieve their goals. This is because everyone has weaknesses which may pose as an obstacle preventing them from achieving their goals, but with the help of others barriers are minimised as all the people involved work towards the same goal. For example a social worker might seek the assistance of a nurse to identify their needs such as they might need carers, go into a home that caters to their needs due to the patients medical condition(s). Teamwork can be applied in practice by collaborating with others in a professional manner by contributing, showing support to others and having an understanding of what my role and others roles are within the team as a way to reduce misunderstanding and enable us to work efficiently. In terms of reflection, it helps an individual get a broaden outlook on how they have performed, which for a professional enables them to identify where they might have gone wrong within their practice which they can learn from and assist them in becoming a competent professional.