External and Internal Analysis Essay

This report will provide an analysis of Bayonne Packaging, Inc and its involvement in the paper packaging industry. The three most important issues facing this company are analyzed which include (i) how can Bayonne strengthen communication among departments and improve overall company culture, (ii) how will Bayonne be able to develop or improve their computerized scheduling system (iii) given Bayonne’s poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines. In addition to analysis of these current issues, alternative solutions have been developed for each. The alternative that holds the strongest presence is for Bayonne to instill a strong corporate culture and ultimately strengthen communication that will allow for the company to excel in its key performance measures of cost, quality, dependability and speed. Introduction Bayonne Packaging, Inc. is currently involved in the paper packaging industry. Currently a 43 million dollar company, Bayonne has grown from 1982 when sales were just 10 million. Bayonne differentiates themselves in being  a â€Å"specialty packaging† paper converter that produces customized, complex-design packaging that is used by industrial customers for promotional materials, software, luxury beverages, and gift food and candy. By diversifying into new markets Bayonne applied its strength in innovative and difficult packaging design and their ability to fold and glue complex blanks. The main issues facing the company are the following: (i) how can Bayonne strengthen communication among departments and improve overall company culture, (ii) how will Bayonne be able to develop or improve their computerized scheduling system (iii) given Bayonne’s poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines. I t is thus crucial to fully analyze these issues more fully and examine the factors that have contributed to each in order for Bayonne to gain competitive advantage. Analysis of Bayonne’s Issues 800  I. How can Bayonne strengthen communication among departments and improve overall company culture? Bayonne’s most stressful month of October has caused delivery, cost, and quality to tank. Consequently, Bayonne has not been able to execute their strategy (see section 2.1) well and excel in key performance measures. This is due to lack of communication and coordination between the quality control, sales management, Fold and Glue, and composition departments. There are several factors that contribute to the communication issue at Bayonne. Among other weaknesses of the company such as building a reputation for late delivery and complaints from customers about quality of products (see section 2.3), communication is one of the strongest. Bayonne seems to be failing in the ten essential managerial tasks of the strategy execution process. Moreover, the lack of communication is reflected in their inability to staff the organization (see section 2.5a) as no proper training is realized and departments are working as silos rather than one unified organization. In addition, lack of communication is also causing for Bayonne to build on their organizational capabilities in specialized packaging and scheduling (see section 2.5b). Bayonne has not been able to develop a strong management team that can assess which value chain activities, for example, should be performed internally and which ones should be outsourced (see section 2.5c). The fact that orders were late more  than 20% of the time in October is reflective of poor communication in the company and lack of delivery in key performance indicators (see section 2.1c). Bayonne is losing customers because of communication problems and lack of internal leadership (see section 2.5j). The work climate (see section 2.5i) has become bitter and there is no sign of a strong corporate culture, cohesiveness or collaboration, which is ultimately causing for a large misunderstanding and negative assumptions between departments. II. How will Bayonne be able to develop or improve their computerized scheduling system? Bayonne’s computerized scheduling system is viewed as useless as it reflects inaccurate information and assumptions about orders. This is causing for company personnel to not do their strategic roles as proficiently as possible and instead the individual departments are making their own decisions (see section 2.5g). Employees are questioning whether or not the scheduling system presents to be practical. The schedule that is generated twice a week by the computerized scheduling system may be a leading cause for Bayonne not being able to live up to their vision, mission, and objectives (see section 2.1A). The composition department is particularly concerned because as manager, Sean Quinn explains; between rush orders and ganging the orders to keep the machines running, he cannot afford time-wise to do what the printout says. Essentially, the schedule indicates to employees that they have an order that they have never seen or still have an order that is finished and got shipped. Inaccuracy may be the leading cause of Bayonne not being able to sustain a competitive approach in terms of their business and functional strategies. For example, one of Bayonne’s business strategies is the importance of determining priority of orders by computing critical ratios (see section 2.1B). In addition, this system has become a weakness to the company (see section 2.3) and is also leading to customer value proposition and the company’s cost structure to weaken, especially in secondary activities of the Bayonne’s value chain (see section 2.4, Product R&D, Technology and Systems Development) Not only is the this system causing workers to ignore printouts and raise frustration, it is causing for a lot of time wasted that could be used toward producing higher volumes of products at a level of good quality for customers. III. Given Bayonne’s poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines? Since Bayonne’s highest volume month is October, the company has not been able to match capacity to its demand requirements also leading for insufficient allocation of resource that contribute to strategy execution (see section 2.5d). Evidence from the computation of machine effectiveness (see financial analysis page) indicates that the Heidelberg presses are operating at 100.29% capacity, essentially making Bayonne’s printing activity the bottleneck of the process. Consequently, this does not give the ability for Bayonne to focus on its core capability of specialized packaging (see section 2.5b) nor deliver on their key performance measures (see section 2.1). In addition, poor use of capacity utilization is also reflected in Bayonne’s decrease in producing good quality products. Producing quality products is essential in keeping customers loyal to the company and is a key success factor in this industry (see section 1.5). The Heidelberg press is slowing down subsequent activities since it can only produce a limited amount of pieces per month, which causes for limiting the inputs that are available for the Die-cut centre. Bayonne’s main resource is their wide range of machines that are supposed to be operating at efficient levels (see section 2.2). These machines are valuable because they contribute to the effectiveness of the company’s strategy. However, with the use of adequate capacity being questioned may be the leading cause of poor delivery performance, which is ultimately the reason that Bayonne occurred a loss in their most stressful month. Discussion of alternative solutions to the issues I. How can Bayonne strengthen communication among departments and improve overall company culture? A solution to this issue would be for Bayonne to reassess their current strategy and instill a strong corporate culture that will bring employees together (see section 2.5i). Bayonne can build on what they already have in place such as the daily production meetings. This is the only chance where employees across all departments come together face-to-face to discuss issues. Instilling a strong corporate culture has its pro’s and cons. The  main advantage is that it can create a strategy supportive organizational structure that Bayonne is currently lacking off (see section 2.5c). Another advantage is that it will also allow for internal leadership to be strengthened. Having a strong leader will set the tone and ensure everyone is working as a team. When communication is improved, Bayonne will be able to delivery on time because the departments will be working collaboratively rather than separately. The only negative to instilling a strong corporate culture is that it wont work unless employees embody the culture and take it seriously and understand that it contributes to Bayonne’s key performance indicators of cost, quality, speed and dependability. II. How will Bayonne be able to develop or improve their computerized scheduling system? An alternative solution to this issue would be for Bayonne to gain adherence to the computerized system by fixing the data that is leading to inaccuracies and introduce a pre-work order jacket. Currently, the work order jacket lists the routing, standard setup and run times, special instructions and ship-to information (see section 2.4, Distribution). If management at Bayonne work toward gaining employee loyalty to this system and introducing a pre-work order jacket based on prioritization where a report would be sent to each department before they begin working on orders and when the prior departments finishes the order, the next department would be aware of what orders are on the way within the next few days –would contribute to proper strategy execution. However, there are some pros and cons to this issue. An advantage of introducing a pre-work order jacket and gaining loyalty of the computerized system would lead to more efficient operating levels at the facility. This will lead to decreased delays, increased quality and better time management. It would enable company personnel to do their strategic roles more proficiently as well; something that Bayonne is not currently acting upon (see section 2.5g). A con with this alternative would be the possibility of initial confusion of how exactly the new system would work. Also, some employees may simply be resistant to adhering to the computerized scheduling system even if it were to be fixed or question whether or not it would be practical enough to sustain high volumes. III. Given Bayonne’s poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines? A solution in improving capacity utilization would be to make more use of the International Royal and Queen machines. Currently these machines are operating at nearly 50% capacity utilization. Since these are the fastest machines, placing important orders to them would generate higher volumes. Advantages in making these machines the main use would contribute to Bayonne excelling in their key performance indicator of speed (see section 2.1C) and improvement in functional and business strategies (see section 2.1B). The machines are only operating at 44.49% capacity utilization, which means that Bayonne is lacking in improving operational efficiencies that could drive down costs. These machines produce the most pieces at the highest speed so making use of them would be highly beneficial. The main disadvantage of this proposed alternative i s that the volume may affect profit margins of the company –a concern of president Dave Rand (see section 2.4). In addition, these machines are complex and difficult to set up which could interfere with allocation of proper time management. This may result to poorer quality – causing for Bayonne main strength in innovative package design to be diminished. Recommendation According to my analysis, Bayonne must focus on strengthening communication within the company. Bayonne has to instill a strong corporate culture and develop on internal leadership within the company. This will lead to happier more productive employees and will allow for Bayonne to build upon their organizational capabilities. In turn, strong communication will lead synchronization among the departments and employees will work as a team rather than as silos. A strong corporate culture and excellent communication will eliminate misunderstanding and frustration among departments that has been causing for Bayonne to develop a track record for late deliveries and poor quality. Ultimately, communication will be the key in Bayonne’s ability to execute their strategy and excel in key performance measures that are crucial to the profitability in the company. Financial Analysis Overall, Net profit margin has been declining which indicates that the company has depleting cash reserves and may have difficulty paying liabilities. Gross profit margin for Bayonne is declining which may indicate that fewer funds may be available for operating expenses. Due to limited financial data in the case, other profitability ratios (i.e. operating profit margin, net profit margin, return on equity, liquidity ratios (current ratio, working capital), and leverage ratios (total debt-to-asset, debt-to-equity) have not been able to be computed. It is apparent that the Heidelberg press machine is operating at full capacity and is the bottleneck of the process. This is causing for scheduled hours to go overtime. High-speed machines such as the international royal and the international queen (only being used 44.96%) are not being fully utilized to an efficient manner, which may be the cause in late delivery and poor quality. APPENDIX 1. EXTERNAL ASSESSMENT 1.1 – PESTEL Analysis Political: n/a Environmental: severe weather conditions may have a substantial effect on this industry if these conditions were to cause a delay in the transportation process of the package Something like a power outage or blackout could interrupt the flow of the packaging process, which in turn will have an effect on sales and the customer. Sociocultural: Customers to the paper packaging industry seeking to make a greater impact with promotional materials reflects the rapid growth of this industry. Fast-paced society – want things delivered on time with no delays.(not being able to keep up rush-orders may affect sales). Technological: advanced  technology may cause industry profits to decline or no longer be needed (e.g. migration of software sales and distribution from CDs to the internet) Economic: if cost of materials (such as glue or paint) used to do the packaging were to rise; orders from customers may decline (important to stay strategically priced). Legal: not complying with FDA r equirements (about coatings, adhesives, and liners) could have an effect of business within this industry. Overall, the macroeconomic environment of the paper packaging industry presents a few challenges. Despite limited information given in the case on external knowledge of this industry – it seems that this industry has experienced booming growth. This industry may be challenged when it comes to diversifying into new markets if the dot-come bubble continues to burst and migration of software sales and distribution form CDs to internet were to increase. In order to survive, companies within the paper packaging company have to diversify into emerging markets and constantly innovate in design of the package or product. 1.2 – Porter’s 5F Analysis: there is no sufficient information about rivals within this industry in the case that can be applied to this framework. 1.3 – Driving Forces  Regulatory influences and government policy changes Requirements set by the food and drug administration (FDA) can have an impact on costs, operational efficiencies and health and safety concerns if companies within the industry do not comply with the regulations. Product and marketing innovation Additional customer market segments have become available to this industry because of the explosive growth of software packaging and promotional material. Both these driving forces have strategic implications for competing companies in the paper packaging industry. For example, if companies within this industry do not comply with specific industry requirements then they will  not be able to run their business or go into financial debt. Also, it is important that this industry to diversify into emerging markets in order to compete competitively. 1.4- Strategic Group Map: no sufficient data in the case to cover this framework since the case does not talk about competitors. 1.5 – KSF’S  Developing collaborative relationships with customers, who are closer to the end consumer Working closely with industrial customers for companies in this industry is crucial as it has an impact on sales for the company and eventually for the industrial customer. Excelling in global supply chain management Excelling in operational performance It is important to keep track of costs going in and out of the company. For example, if cost of goods sold (COGS) takes up a high percentage of the company’s sales may indicate that the company is not performing efficiently or not earning enough revenue to comfortably run the business. Effectively managing the delivery of products while keeping costs minimized It is important for companies in this industry to develop a track record for constant on-time delivery as this will reflect in the customer being loyal to the company which will drive sales. 1.6 Industry Outlook: overall this industry is conductive of good profitability since many industrial customers need their products to be packaged properly in order to be sellable. It is therefore important to excel in cost, quality, speed, and dependability at a competitive level for companies within this industry. 2. INTERNAL ANALYSIS 2.1 How well is Bayonne’s present strategy working– The present strategy at Bayonne is to out-compete rivals and prioritize in four key performance measures, which are quality, cost, speed, and dependability. This is mainly more of an operations strategy seeing as this company is the producer of the product that the customer sells. It is important for Bayonne to deliver on quality packaging, constantly innovate all while minimizing costs and producing high volume to remain competitive. A) Vision mission and objectives: Vision: although there is not enough sufficient data that states Bayonne’s vision; it can be assumed that based on what is given in the case, Bayonne’s vision might be along the lines of becoming the number one industry leader in specialty packaging by providing the best customer satisfaction, quality and product innovation. Mission: based on what is given in the case, Bayonne’s mission could be being committed to providing innovative solutions to difficult package design while excelling in cost, quality, and delivery. Objectives: financial objectives at Bayonne are to keep costs down as much as possible, while still delivering on quality. Strategically, Bayonne aims to excel in their key performance measure of dependability, cost, quality and speed that’s embedded in their strategy. Overall, they strive in being operationally efficient. B) Bayonne’s Competitive Approach Business Strategies: Working closely with customers to ensure satisfaction and approval in the design on the package Building on competitive advantage by providing additional finishing to the package as a courtesy to the customer. Also tapping into new markets and products such as promotional material Importance of determining priority of orders by computing critical ratios (e.g. lower than 2 indicates concern for the job) Expediting the most important orders in hopes of sustaining customer’s loyalty to the company. Functional Strategies: Ensuring quality is met by checking two pieces every hour and conducting a final inspection Ensuring that the work-order jacket travels with the job at each department Ensuring that if a full delivery cannot be made then at least getting partials out is important When orders need to be completed quickly, then this is done by â€Å"ganging† them up whenever possible. Sales  management department is focused on pricing aggressively to the market in order to sustain volumes. C) Key Performance Indicators Strategic: how Bayonne is doing in terms of their key performance measures Financial/Machine Effectiveness -Quality: quality control reports indicate that 6% of products were found defective due to glue problems, leading to an increase in customer rejects of shipped products. Finishing department has problems in including all pieces of the product. -Cost: cost of goods sold has increased, net sales have decreased from previous years, which has caused Bayonne incurring a loss in 2011. -Speed: there is a lower overall speed of delivery to customers. Machines are not being fully utilized since employees are not given the opportunity to assess which orders to run on what machine. A lot of orders that are expedited causes for a breakup to occur in production leading to extra set up time for the machines. -Dependability: Not doing well. Customers are aware of Bayonne’s inconsistency of delivering packages on time. This is reflective in the company’s worst month; October – where 20% orders were late. – Financially, Bayonne understands that there is a tradeoff in keeping costs down, getting good quality and hitting delivery promises. The ultimate goal is to perform financially well in all three. – Bayonne’s declining net profit margin may be indicative that cash reserves are depleting and they may have difficulty paying liabilities. – Gross profit margins have also declined possibly indicating that raw material costs have increased and manufacturing costs have gone up. – In calculating machine effectiveness, it is indicative that in the print department the Heidelberg press is the slowest of machines, which is creating a bottleneck in the process where capacity utilization is 100.29%. 2.2 – VRIN Resource: Wide Range of Machines operating at efficient levels. Capability: Specialized Packaging (includes innovative, difficult packaging design, and finishing touches) Is it Valuable? The machines pass the valuable test because they contribute to the  effectiveness of Bayonne’s strategy. The International Royal and International Queen are Bayonne’s most important machines that contribute to gaining operational efficiencies and added value to the customers because they operate at a high speed. Bayonne’s specialized packaging capability is very valuable and highly contributes to the effectiveness of their strategy (especially in the quality area). Since this capability is competitively valuable, Bayonne passes this test. Is it Rare? Since these are generic machines, this resource is not rare. It therefore does not pass the test since other packaging companies can invest in the same machines as long as they have the financial stability to do so. Not a lot of companies may take the time to closely work with customers in special and complex packaging design. Also adding personal finishing touches is not something a lot of other paper packaging companies take the time to do. Bayonne therefore passes the rare test. Is it Inimitable? The machines are imitable; therefore this resource does not pass the inimitable test since other companies can purchase the same machines to produce the same quality packaging. There is no uniqueness to them. Capabilities in specialized packaging design is something that other companies can copy as it is not competitively superior to potential rival companies. Bayonne does not pass the inimitable test. Is it Non-Substitutable Although Bayonne may have an efficiency advantage with their machines, it does not pass this test since potential rivals can copy the same machines and produce equally good products at lower costs by locating their plants in countries where wage rates are relatively low. Potential paper packaging industry rivals may also offer specialized packaging capabilities. This means industrial customers can pick and choose with which paper packager to partner with. Therefore, Bayonne does not pass this test. Overall, this framework presents strategic implications to Bayonne indicating that their resources and capabilities are not ones that contribute to Bayonne having a competitive advantage that is sustainable. The company’s  resources of machines and specialized packaging capabilities present to be competitive assets to the company and are central to Bayonne’s strategy. However, by not passing the last two tests of this analysis is indicative that Bayonne may be prone to imitative attempts and efforts from potential rivals. 2.3– SWOT Analysis  Strengths – Working closely with customers – Aggressively entering into new markets – Innovative and difficult package design – Ability to fold and glue complex blanks – Ability to price aggressively – Well managed scheduling in Composition department in terms of being rarely out of stock and re-stocking quickly. – Use of High-speed machines help keep volumes high – Consistent performance from Maintenance team in running inspections and fixing something right away if it breaks down. Weaknesses – Complaints from customers about quality (concentrated in Fold&Glue) leading to defective products – Developing a bad reputation for late delivery time, which is also causing customers to lose trust in the company – Mismanagement and communication problems between departments inevitably causing orders to run late (threats coming from heads of other departments, no synchronization) – Computerized scheduling system appears useless as it conflicts with time management of rush orders – Some machines run slow despite being fast to set up (e.g. Staudes) – Data reported through the shop floor computer terminals is inaccurate Opportunities – Diversifying into emerging markets and taking on new types of customers. – Prospective money to be made in Manhattan in terms of promotional material which can lead to gaining more customers Threats – Possibility of receiving safety concerns for not complying with FDA requirements leading to overall increased costs. 2.4 – Value Chain Analysis: are the company’s cost structure and customer value proposition competitive? Primary activities: Supply chain management: from the limited information provided in the case, there is not much that can be said about Bayonne’s supply chain management. The most relevant fact is that Bayonne’s supplier is International Paper that helps keep the composition department stocked with the necessary materials that are used to make the products. In terms of costs in this area, according to Bayonne’s income statement – the Cost of Goods Sold (COGS) significantly increased from 83.2% in September 2011 to 90.7% in October 2011. Since October is also the month in which Bayonne occurred a loss of $365,694 is indicative that the company is not performing well on the cost performing measure. Operations: Bayonne places high value in executing their operations strategy since they are responsible for producing the product itself at their facilities. The goal is to keep margins low while getting the volume. The flow of order through the production department is a system relevant to Bayonne executing their strategy. Quality assurance activities are performed at Bayonne where there are two inspectors on each shift covering the Composition, sheet, print and Die-cut, Fold&Glue, and Finishing departments as well as inspecting the shipping dock. The inspectors check the machines every hour during the production run and a final inspection is performed before the product gets shipped out. Distribution: In order to keep track of the products that Bayonne produces, heavy reliance is held in their â€Å"Work Order Jacket.† For example, before shipping the finished product to the industrial customer, quality control managers check the product against proof in the work order jacket. The jacket lists routing, standard setup and run times, special instructions, and ship-to-information. It also held the customers signed proof along with samples signed by operators, supervisors, and QC at each le vel. Distributing finished products to customers on time is highly important to Bayonne not losing customers; however data shows that in the month of October 2011, they were late more than 20% of the time causing customers to lose trust and expedite orders. Sales and Marketing: although there is not enough information to indicate what Bayonne’s costs, activities, and assets related to sales force efforts are – the products that Bayonne produces directly  impact the end customer. For example, industrial customers who place large orders with Bayonne and pay a high price per piece; place high expectations that Bayonne deliver the product on time in correspondence to say, a promotional campaign that they are launching on a specific date. Its seems that sales management at Bayonne is not developing a good track record for on time delivery because of miscommunication going on between the departments. Also, sales management places high relevance on pricing aggressively to the market, which may conflict with profit margins of the company. Service: Bayonne provides all necessary services such as design assistance and final delivery of the package. It is important for the company to gain customer approval when developing artwork a nd package design as it directly affects profitability. This is why the sales force at Bayonne works closely with the customers showing that the company respects the important decisions that they make since these customers are the ones that make the product sell to end consumers. Profit Margin: President Dave Rand complains about margins, but not about volume. Secondary Activities Product R&D, Technology, and Systems Development: Bayonne’s strength is in innovative and difficult package design and their ability to fold and glue complex blanks. In order to remain innovative and keep volumes high; the company uses high-speed machines such as the International Royal and International Queen. Bayonne also uses a computerized scheduling system, which add up the standard set up and run hours for every order released to the plant and schedules order by priority. However, the use of the computerized scheduling system is having a negative effect in terms of order processing. Human Resources Management: Since Bayonne is mainly a family run business, there are no real HR practices in place. Employees essentially work on a â€Å"do what it takes† system and there are no training procedures. General administration: n/a 2.5- Ten Managerial Tasks of the Strategy Execution Process a) Staffing the Organization Bayonne Packaging began as family business and later grew into a larger organization. However, the lack of cross-functional communication may be indicative that no proper training is realized as the departments work as silos rather than one unified organization. Bayonne recognizes the importance of good upper management seeing as the old VP of operations was fired and replaced by John Milliken who has a background in general manufacturing and seems to exhibit traits of a valuable and talented employee. Since Bayonne incurred a loss in 2011; this may reflect on the fact that management is weak, and employees may not be valued as important assets that tie directly to strategy execution and gaining of competitive advantage. b) Building on Organizational Capabilities Bayonne’s ability to manage people to gain competitive advantage is lacking. Through internal development, Bayonne can build on their scheduling capability. Since each department works in a separate manner, there is no synchronization, which interferes with orders being successfully completed. Second, Bayonne’s capabilities in specialized packaging can also be improved through internal development by having managers at the company set an objective to develop this capability and organize activity around it. Bayonne is able to differentiate themselves by possessing strength in innovation and difficult packaging design (i.e. working closely with customers in the design and adding personal touches in the finishing department) but lack of collaboration and communication in the company have resulted in operational deficiencies. c) Creating a Strategy -Supportive Organizational Structure Bayonne is not properly organizing work efforts in a strategy supportive fashion. In order to excel in the key performance measures of cost, quality, speed and dependability embedded in their strategy – they may have to reassess operational activities. A strong management team has to be built within the company in order to assess which value chain activities, for example, should be performed internally and which ones should be outsourced. Currently at Bayonne their organizational structure is not aligning with their strategy; in part due to communication problems. Also, there seems to be no delegating of authority or facilitation of necessary collaboration and coordination with external partners and strategic allies. d) Allocating Sufficient Resources to Strategic Execution Bayonne is not operating as cost-effectively as possible. Although sales  management may be pricing aggressively to customers by offering a high price per piece – this indirectly affects profit margins at the company. Bayonne is not using their resources (i.e. their machines) in an efficient manner. e) Instituting policies and procedures that drive strategy execution activities There are currently no policies in place at Bayonne, which may hinder good strategy execution. The work climate is not one that facilitates good strategy execution; employees are unnecessarily being yelled at, and pressured to run orders in short notice of receiving them. Bayonne’s procedure for preventing or finding defects is signing off the first good piece the operator runs and then recording it in the Work Order Jacket. However, this shows a degree of carelessness in ensuring good quality as often there is a possibility for more than only one piece being defective. Excelling in cost, quality, speed, and dependability is being compromised by lack of communication and coordination among employees when they disagree on acceptable partials and make up their own â€Å"rule of thumb† that is not in sync with the goals of other departments. f) Adopting best practice and business processes that drive strategy execution activities Bayonne has not adopted any benchmarking methods that would help in implementing best practices. The only common practice at Bayonne is in recognizing revenue when its billed the customer, and billing when the product is shipped. In October 2011, Bayonne was late with their deliveries more than 20% of the time, compared to 2009 with only 5%. This is affecting Bayonne’s ability to excel in the dependability aspect of their strategy; also since customers are aware of this and consequently ‘move up’ their orders g) Installing info and operating systems that enable company personnel to do their strategic roles proficiently The computerized scheduling system at Bayonne is weakening their organizational capabilities. Many employees find the scheduling system to be useless, as the printouts do not accurately reflect what has been finished and what needs to be started. Lack of accuracy and timely information about daily operations does not allow for managers to gauge how well the company is executing their strategy. h) Tying rewards and incentives directly to the achievement of strategic and financial targets There is currently no reward system in place at Bayonne. This causes for lack of motivation and engagement among staff. Employees are neglected and not encouraged for their hard work as  managers are only focusing on expediting orders by getting them authorized by Dave Rand. i) Instilling a corporate culture that promotes good strategy and execution There is no corporate culture in place at Bayonne. The work environment is not strong or positive. Miscommunication leads to misunderstanding among employees and even screaming. Managers are not properly guiding employees in the right direction o f how to do things right and doing the right thing – instead they are focused on their own goals in mind. For example, Wascov only focused on pricing aggressively to the market and expediting orders causing for other departments to rush orders and compromise quality which leads to the upset customers) No commonly held convictions in place of how the company’s business is to be conducted – instead, departments make up their own separate rules leading to incisiveness across the board. j) Exercising the internal leadership needed to propel strategy implementation forward There is no strong internal leadership in place at Bayonne resulting in lack of synergy between the departments. This is why new VP of Operations; Milliken has been put in place. He seems to be staying on top of what is happening by touring the factory and asking relevant questions to department managers in aim of propelling strategy implementation forward. Neil Rand (Dave Rand’s uncle) is not exhibiting traits of a proper executive for Bayonne. Although he does whatever it takes to eliminate work order delays, he does this by randomly showing up and neglecting other important orders. This leads to requests for earlier finishing dates and inevitably leading to an increase in late orders. 2.6 – Strategic Issues 1.How can Bayonne strengthen communication among departments and improve overall company culture? Miscommunication seems to be occurring across different departments, which may be the cause of the increase in late deliveries in October. Lack of company culture may also be the cause in synergy and good energy within the company. 2.How will Bayonne be able to develop or improve their computerized scheduling system? This current system is causing for many inaccuracies, which leads to orders to be expedited. Lack of proper data that the system is generating is causing for unnecessary frustration among employees and quality is being compromised. 3.Given Bayonne’s poor delivery performance, how can operational efficiencies be  improved in terms of capacity utilization of the machines? It seems that the Heidelberg press machine is the bottleneck of the process as it is operating at full capacity, but it is unable to cope with variability in customer orders. Some machines are not be ing fully utilized which affects Bayonne’s performance measures in speed and dependability

No Taxation Without Repesentation

Explain the meaning of the revolutionary slogan ‘no taxation without representation’. How did that express the core values of the new American political culture? Under American Revolution we understand politic developments in British colonies in North America in 1775-1783, which ended up creating the United States. They were caused by the unwillingness of the colonies to obey to the interests of the metropolis. The slogan that best expressed the cause of the revolution was ‘No taxation without representation’. It was widely used as a main complaint to royalty and colonial administration during the American Revolution.The slogan originated in the 50 – 60 years of the XVIII century, when British colonists in America began to realize that in spite of their large number and business activities, which are taxed, they have no representation in the Parliament and cannot exercise their rights guaranteed by the Bill of Rights, adopted in 1689. Let’s loo k a little bit closer to the history. In the 1760s British Parliament for the first time started a massive taxation of Americans, violating the fundamental bourgeois legal precept – no taxation without representation.Residents of the province were used to and wanted to continue to pay only the taxes that have been approved by their own elected representatives in local assemblies. Britain took, in addition, a law forbidding Americans to move to the vacant land. This law affected rich landowners, whose entrepreneurial appetites were dramatically reduced; and also small and poor farmers, who had been taken away a cherished dream of their own land. It was followed by political repression: restrictions on freedom of religion, the abolition of jury trials, the privacy of home and property, entry of the British troops in North America.Many of these decrees and laws came from the monarch, but in contrast to earlier times the freedom and rights of Americans have been actively suppress ed and limited also by the British Parliament. Since the 1760s Britain actually began to rule in North America as an absolute monarchy, trying to impose conditions inherent in feudal society. Americans cherish for more than a half century bourgeois social order, were shocked by their attempt to create a new absolutism. The 1760-1770-ies were characterized by the democratization of the political consciousness of Americans and American political culture.An ideological revolution was developing in America, that prepared and made possible a half decade later, the political revolution. Democratization touched a political practice in North America also. Previously unknown forms of political action of the people were developing: mass gatherings, meetings, rallies. Thus was formed the immediate or direct democracy, that started to compete with representative democracy. All sorts of amateur political organizations were created; the most prominent among them was the â€Å"Sons of Libertyâ₠¬ .The most prominent representative of the moderate stage and course of the anti-colonial movement was James Otis. He was most famously associated with the phrase, â€Å"taxation without representation is tyranny†. In the 1760s he became a political oracle of American patriots. In 1761 in the Supreme Court of Massachusetts, Otis condemned the English decree, empowers customs colonies search procedure without judicial authorization of any dwelling to retrieve contraband. Otis argued that the famous English Bill of Rights and Habeas Corpus Act, which guaranteed inviolability of the person, property and housing, equally apply to Americans.No law or decree can be accepted that contradicts these basic acts which Otis after Blackstone called the Constitution. Otis turned the English Constitution and natural law in two main pillars to protect the interests of Americans. Demonstrating brilliant erudition and perseverance, he drew from the English constitution provisions that guaran tee citizens the security of property, and the right to representative government and trial by jury, and freedom of religion, and many other rights, which were based on liberal bourgeois world order.Otis has worked hard to prove the importance of the struggle for representation of North American provinces in Parliament. But his tenacity has not conceived a significant impact on his compatriots. Common sense told patriots, that a small group of colonial deputies in parliament cannot change its policy. Samuel Adams, who was established in the late 1760-1770's at the leading position in the patriotic movement of Massachusetts, states that the colonies cannot be fully represented in Parliament and that their representation at Westminster will turn against provinces itself.That would legitimize parliamentary tyranny for North America, and that therefore, a struggle of patriots for seats in the English legislature leads them astray. American political culture contains a number of core ide als, values and standards that define the relationship between citizens and government, and citizens to one another. Different societies view politics differently, and have different approaches to the view of society. In America, the views of society are liberty, equality, democracy, and individualism.Liberty as right to be free; equality as equality of opportunity; democracy as elected officials from the people; and individualism as the individual's rights are valued above those of the state (government). The American system creates in people a confidence that each and every person have to play by the same rules, and the role of the government is to protect these rules; confidence in the will of the people to support enterprise and entrepreneurship, to persistent work anywhere. And even if at some point people are unsuccessful, they will be making efforts to achieve success again and again.

Political issues Research Paper Example | Topics and Well Written Essays - 1500 words

Political issues - Research Paper Example On the other hand, the UK has its monarch acting as the head of state; however, supreme authority is not vested unto the monarch because there is a separate head of the government elected by the people who exercise political powers. Just like in the US, these leaders espouse a set of laws found in the constitution (Storey, 87). This paper discusses the different between government systems of the US and the UK, as well as other countries referring to three articles. 1. Szilagyi, Ilona Maria. "Presidential versus parliamentary systems." AARMS Vol. 8, No. 2 (2009): 307–314. Notably, the founding fathers who wrote the US constitution had the British political system to draw on; however, they avoided any form of concentrated power that resembled the monarchy because it is one of the chief things that they rebelled against. Nonetheless, there are a few similarities between the two political systems. Both the British and the US forms of government have a head of state, upper and lowe r house, and a court system. The two have constitutions that depict the rules for government as well as the rights their people have. Both political systems are democratic in nature; there are firm checks and balances in place to inhibit the power of any one branch. Both governments can be put in place and can be removed from power depending on the will of the people. The president in the US political system is the legitimate head of state elected as part of the Electoral College (Watts, 312). United Kingdom have the King or Queen as the legitimate head of state while the prime minister handles political matters and is the legitimate head of government. Officially, UK’s head of state signs off any act of parliament and delivers the Speech from the throne written by the prime minister. In most modern governments, the monarch plays the part of a ceremonial figurehead thus it is atypical for members of the royal family to directly get in the way of the country’s political process. The upper house in the US is the Senate while the UK has the House of Lords. Each state under the US system of governance, despite the size, has two senate members. Before, the governor of the state used to appoint senators but these days they get to be elected by the people to serve 6-year terms. The House of Lords is quite different. They are not elected by the people. In addition, the House of Lords appoint 792 members basing on inheritance, or their title in the Church of England (Harris, 231). They are never elected and cannot be removed from office by popular vote. Nonetheless, they serve the same purpose as the US senate (Szilagyi, 310). They debate, discuss and vote on legislation passed by the lower house in the legislative branch. The British House of Commons and the US House of Representative draw on a lot of similarities. Each house comprises representative elected by the people. Control of the lower house is given to the party that carries the most number of s eats. Under the UK system of governance, the party with majority members produces the prime minister who is then the party leader becomes the Speaker of the House. Elections are also different in the two forms of government. The prime minister under the parliamentary system can go to the crown and ask to dissolve the parliament at any given point. Thereafter, an election would follow. An election would also be eminent if the Prime Minster lost the confidence of the house. 2. Mcquire,

How two major supermarkets in the Australian market carry out their Assignment

How two major supermarkets in the Australian market carry out their business - Assignment Example This research establishes an inter-association between all picture images, content, and loyalty components. The outcomes of the research demonstrate the way store picture influences feelings more straight from store environment, service, producing and after sales service more so than the sight and expediency. This outcome promotes past researchers like Willkie and Olson et al. on the way feelings have a straight firm effect on store loyalty and reassure the proposed theory if a customer holds an optimistic feeling towards the supermarket; they are probable to be faithful. However, this study contrasts the research by Yoo and Macinnis that accounts for just supermarket site to have a straight impact on the general store feelings. Alain d’Astous and Melanie Levesque’s research, â€Å"A Scale for Measuring Store Personality†, develops the urgency to conceptualize the notion that every store has its personal new personality and establishes a technique in which it wou ld be assessed to access its psychometric features. Five sizes were established that are applied in the breakdown of this research of Coles vs. Woolworths. The sizes are marked complexity, firmness, genuineness, keenness, and unpleasantness. The research attains its outcomes through establishing a prosperous personality scale for supermarkets to aid with marketers’ breakdown of customers’ views on the grounds of their emotional sequences.  

Compare and contrast California's 2011 Statewide Redistricting Process Essay

Compare and contrast California's 2011 Statewide Redistricting Process with the one done in 2001. Will the new process live up t - Essay Example Would 2011 redistricting when appropriately done help to ensure that every voter is equally represented unlike previous redistricting of 2001? This paper thus compares the 2011 and 2001 redistricting of California State. Introduction As compared to 2001 redistricting the 2011 redistricting disagreements appears to start again in California (Rosen). This has been sparked by the recently redistricting reform proposals that were offered by Governor of California state, Democratic legislators as well as lobby groups and ordinary citizens. Throughout their proposals, these legislatures and activists embrace that redistricting should be done by an independent commission. According to researches, this observations redistricting by 2011 would result to be one of the best ever experienced California. This would be because the opportunity the process would allow citizens to decide democratically the mapping of their administration through the independent commission elected by their leaders bas ed on the authority vested to them (Maviglio 38). These commissions are as established by the people and the federal government. For instance: Advisory Commission: establishes suggestions which are handed over to legislative. These suggestions can be adopted or rejected by the legislature. The advisory commission is practiced in Vermont as well as in Maine. Primary commissions: this team has the independent mandate to formulate and implement redistricting projections. States that practice this type of arrangement are New Jersey, Ohio, Colorado, Pennsylvania, Arizona, Alaska, Arkansas, Washington, and California (Cressman 6). Backup Commissions: convenes only when the legislature has failed to enact redistricting program. In such events, this commission has the capacity of drawing new district boundaries. This type of commission is active in Connecticut Illinois, Oklahoma, Texas and Mississippi. Thomas of Brookings Institute observes that after every ten as stipulated by the governme nt of the United States, a census is conducted in the all States which is used to readjust population figures throughout the country (Statewide Database). These established population figures would then applied to determine redistricting which is the re-drawing of state legislative district and Congressional leadership. Evaluations indicate that immediately the census outcomes have been released, states would be commissioned to carry out the redistricting activities. In considerable number of states the activities of redistricting are led by the state governor and legislature. In California boundaries determine administrative lines of Board of Equalization districts and Assembly. Currently, the California State Legislature draws those lines themselves. However, due to politicization this has resulted to decreased number of persons turning out for census as well as redistricting (Bickerstaff 45). For instance, Thomas of Brookings Institute (Maviglio 43) intimated that some Congressio nal Districts are systematically crafted inkblots. In such districts, voters might be made to think that they choose elected officials, however it’s the elected leaders who choose them. However, the legislative redistricting, carried out by an independent commission comprising partisan appointees, would be less egregious. This arrangement has received consent from political scientists who agree that an independent co

Industrial Assignment Example | Topics and Well Written Essays - 3000 words

Industrial - Assignment Example The root level meaning of culture is to nurture and cultivate. Values and beliefs to certain extent cannot be differentiated since they are internal to an individual. Beliefs and values are most integral component within an individual that governs their overall behaviour. Values basically includes analyzing what is wrong or right and staying truthful to others. This factor greatly influences attitude and behaviour of a person. There are certain common values for business such as community involvement, innovation and fairness. Beliefs and values are in-built within an individual and this drives their overall culture. Values can also be incorporated by getting influenced by a social group. Every individual possesses a set of values and beliefs which one follows for life-long. Organizational culture, values and beliefs play a significant role in terms of building a corporate image. Culture clearly reflects the execution of business operations in an organization (Boxall and Purcell, 2003 ). Organizational value helps to structure set of behaviours which is shared amongst all team members. This aspect distinguishes one organization from others. Values not only enhance commercial value but even enable workforce importance in a firm. For instance, some companies are focused on achieving high performance standards and some are aligned with developing a participative work culture. Hence values are different in both these organizations and this creates different corporate images. This can be observed in real world scenario where some firms are regarded as high performance workplace and some companies are denoted as following appropriate work culture in terms of employee motivation or level of job satisfaction. An organization’s importance is totally dependent on its set of values and beliefs. For example, a firm can be inclined towards seeking high revenue margins whereas another firm might be closely knitted with achieving higher level of

Servant Leadership for Minorities Research Paper

Servant Leadership for Minorities - Research Paper Example Diversity has two dimensions that are primary and secondary. There are some aspects of an individual’s personality that cannot be changed. Besides, such aspects of the human personality are mostly obvious and known to the people because of their being visible and easily discernable. Such aspects of diversity are called primary dimensions and they include within their ambit, attributes like age, race, gender, ethnicity, physical abilities and disabilities and sexual orientation. A gross stereotyping of the people based on their primary dimensions can cause tremendous hurt and does have the potential to give way to a conflict. Secondary dimensions are the aspects of human personality over which individuals have some control. People mostly do have the power to alter the secondary dimensions of their existence. Besides, secondary dimensions are the aspects of human personality, which they can conceal or reveal as per their convenience. Secondary dimensions usually consist of attributes like work background, economic status, marital status, functional specialty, job level, religious beliefs, thinking style, geographic location, parental status, education, communication style etc. Diverse leadership teams always accrue multiple benefits to organizations. Recognition of and acceptance of diversity by the leadership in any organization improve organizational performance. Once people get assured that their diversity is acceptable and normal, they tend to spend less time in reacting to unlawful or perceived discrimination. ... Such aspects of diversity are called primary dimensions and they include within their ambit, attributes like age, race, gender, ethnicity, physical abilities and disabilities and sexual orientation. A gross stereotyping of the people based on their primary dimensions can cause tremendous hurt and does have the potential to give way to a conflict. Secondary dimensions are the aspects of human personality over which individuals have some control. People mostly do have the power to alter the secondary dimensions of their existence and are usually less sensitive about them. Besides, secondary dimensions are the aspects of human personality, which they can conceal or reveal as per their convenience. Secondary dimensions usually consist of attributes like work background, economic status, marital status, functional specialty, job level, religious beliefs, thinking style, geographic location, parental status, education, communication style etc. (Loden & Rosener 25).Diverse leadership teams always accrue multiple benefits to organizations. Recognition of and acceptance of diversity by the leadership in any organization improves organizational performance. Once people get assured that their diversity is acceptable and normal, they tend to spend less time in reacting to or worrying about unlawful or perceived discrimination and harass ment (Parrillo 27). Acceptance of diversity enhances people's self-esteem and leads to better work place relations. A leadership sensitive to the diversity of the employees serving in an organization encourages people to bring out the best in them. This leads to a positive and favorable self-image. Acceptance and proper management of diversity tremendously improves the problem solving abilities of

Telecommunication in healthcare Speech or Presentation

Telecommunication in healthcare - Speech or Presentation Example Another area which has been evolving over the course of years and decades is the healthcare industry. Healthcare has constantly evolved with the times, from poor and dangerous practices to safer, more effective procedures. From the old days of blood letting and body humors, to CT scans and brain surgery, healthcare has come a long way, and continues to evolve in order to aid mankind in staying healthy, relieving pain, and generally living longer. The goal of this paper is to examine and assess the marriage of these two topics; telecommunications in the healthcare setting. It aims to discuss its current state, benefits and set backs, as well as to try and predict where it will be in the next 5 years. It aims to do so by laying the topic out as such: 1. What is telecommunication? 2. Telecommunication technology used in the hospital setting 3. Advantages and disadvantages of telecommunication in healthcare 4. Significance of telecommunication in the healthcare setting 5. Where will heal thcare telecommunications be in 5 years What is telecommunication? Telecommunication, according to dictionary.com, is â€Å"the transmission of information. . . usually over great distances, in the form of electronic signals..†. This gives us a guide as to how to look at the technology that will be discussed in this portion of the paper. There are many forms of this technology available in the market today. The basic form of this technology is of course the telephone. There are many types of telephones that use different types of connections in order to communicate such as the regular public switch telephone network, internet protocol or IP phones, and mobile carrier phones. This is most likely the first thing that would come to mind when thinking about telecommunication, however, this is but a small part of the technology. Other examples are chat and email. These on the other hand are text-related forms of telecommunication. These provide a great way to send out information quickly if incase there is no time to spend on the phone and if details are needed to be sent over that require visual support. You can also consider fax as a form of telecommunication as you are still sending over information electronically; it’s just turned into a hard copy once it is received. One other form of telecommunication, which people normally do not think of, is the public announcement system. It still fits into our description of sending over information electronically. The great thing about telecommunications is that it is flexible, it evolves in conjunction to our needs and it improves greatly over the course of a relatively short period of time. This means that it is effective in most settings and is able to provide multiple options for connectivity. Telecommunication technology used in the hospital setting The healthcare industry has slowly grown and evolved throughout time and so have the technologies that they used. As they made an effort to solve more prob lems, their need to communicate, share information and collaborate also grew and changed. Gone are the days of regular landline calls and pagers. The healthcare industry now uses great technology and equipment in order to have better communication, record keeping, and collaboration. Aside from the average technology such as IP phones, email, chat, fax and the PA system, the healthcare industry also has other tools up its sleeve. One of them is video conferencing. There is one kind that is specially

Usability of a Business Statistics and Research Course in the Field of Essay

Usability of a Business Statistics and Research Course in the Field of Information Technology Project Management - Essay Example hnology management involves analysis of business design, supervision of teams, preparation of project plans, designing databases and developing reports, the scope of business statistics and research involves principles of data collection, research design, and statistical analysis. The two professions therefore shares data management and communication of results as a common sub field. Sharma explains that developments in information technology have widened its scope to include applications that were previously undertaken by statisticians. He however identifies the technology to facilitate the analytical processes rather than being the basis of analysis (Sharma, p. 8). Business statistics and research, therefore, is used in developing designs for data collection and determination of appropriate type of analysis that is required for a data set. Information technology then validates and implements the designs for analysis (Sharma, p. 3, 8). Business statistics and research would therefore be applied in information technology project management by using it to develop a research and analysis framework that is then implemented by information technology project management

Information Management Essay Example | Topics and Well Written Essays - 1000 words

Information Management - Essay Example There are basically 10 principles that ensure Information Management is done effectively and successfully. These 10 principles make Information Management easy and the organization experiences much better results if they follow these. The 10 principles are: Organizations have very complex environments in which it is necessary to implement concrete solutions. There are a lot of challenges when planning and implementing information management projects. All these challenges have to be over taken. When these complexities arise project teams often try to find easy and simple solutions, which is wrong. In reality complexity cannot be avoided and the easiest way to solve it is to find new approaches to information management that recognize and manage this complexity. Information management systems are only successful if they are actually used by staff, and it is not sufficient to simply focus on installing the software centrally. In practice, most information management systems need the active participation of staff throughout the organization. Meaning that adoption by staff to the information system is essential. Information management projects must always be designed so that they deliver tangible and visible benefits. This means that mostly information management projects are very valuable but when asked it can be difficult to show the return on investment. For example, improving the information accessible to call center staff can have a very observable and tangible impact on customer service. Business Needs should be given importance Some organizations try to prioritize projects according to the technology to be deployed meaning that if newer technology is being used the project is given the highest priority; this is not a meaningful approach. Instead of using this method projects should be prioritize according to how they address the business needs. Move step by step There is no single project that wills solve all the information management problems of an organization. In reality, anyone who tries to design the complete information management solution will be trapped in 'analysis paralysis' that is the inability to get out of the planning process. Hence journey of a thousand steps should be taken that is small changes should be made in the information management practices that eventually result in the perfect process later. Strong Leadership If an organization wants effective information management they need to concentrate on organizational and cultural changes. Strong leadership can only achieve these objectives. Hence effective and successful information management is a result of strong leadership. Avoid Risks While providing solutions for complex issues of any organizations as we discussed in the 1st principle it is very necessary to study all the risks involved. All the solutions that are provided have risks involved while implementing them. Identifying those risks and avoiding them using risk management is necessary and quite achievable. Extensive Communication Effective

Psychological Impact of Socio-Political Factors Essay Example for Free

Psychological Impact of Socio-Political Factors Essay A society is composed of distinct cultures which identifies itself from others. The cultures of societies are distinct and peoples lives are usually patterned from prevalent traditions, practices and beliefs within that culture. Culture could be held responsible in the upbringing of an individual. People continuously conform on the dynamic culture of the society as they adhere on the norms, practices and values. Culture is an ever-changing feature of a society and incessantly develops and redefines attributes based on lifestyles and conditions. It is influenced by various factors that create sustained tight cultures. This will further result on the variations in cultures of a global society. We attribute cultural differences in its historical and ecological context. Socio- political factors also influenced our culture. These factors influence psychological appendages of an individual. As world trade and globalization are greatly emphasized, interaction across culture is increased and cultural diversity becomes a hindrance to fully achieve its objectives. Socio-political factors are in many forms and are inherently embedded in culture. These factors play significant role in molding the identity of a particular society. Socio-political factors are founded based on our beliefs and values and our behavioral tendencies and they were accustomed in our daily lives (Schneider, 2004). Stereotyping There were so many social groups in every country and it makes that particular nation a diverse geographic area. We could easily picture a collage of the various social groups but we could fail to include the real identities and configurations of these social groups (Stangor Schaller, 1996). We may generate a statement on the perception of the characteristics and utilized it to describe the whole group. For example, Germans are hot-tempered and African Americans are rowdy. This process of thought depicts the conventional definition of stereotypes in social psychology, in which stereotypes are regarded as the main picture portraying the totality or the representation of a particular group of individuals. Stereotyping could also exist in the minds of the persons who are being stereotyped (Stangor Schaller, 1996). Stereotyping is a type of socio-political factor where we categorized people based on our beliefs. Perception plays a large part in the social context. Stereotyping is how we perceive people as established by a particular circumstance. In the course of time, stereotypes are considered synonymous to certain constructs that is ordained in the study of stereotypes. Stereotypes are considered as products of categorization, labels, schemas- these constructs tend to overlap each other for they were closely related (Schneider, 2004). Stereotypes is a result of our behavior towards others, it also affect our behavioral patterns toward different kinds of people. There is a substantial participation of group members in fostering stereotyping in people. Shared experiences suggested that stereotypes grew impliedly when members of a particular group perceived a certain category on the other group of individuals (Schneider, 2004). We think in-groups and out-groups as natural phenomena and we perceive them differently. Categorization of groups evolved into stereotyping. Stereotyping could render negative implications, this includes depriving opportunities to the persons being stereotyped based solely on the biased belief of the one assessing them. Stereotyping could be an individual problem and shall consider that it is not a shared knowledge, but when the perception was common in all members of the community; its effects become more noxious because it affects the whole society in the same way (Stangor Schaller, 1996). Stereotyping, therefore, could be looked at two perspectives. It could exist in the persons mind, as representations of a persons beliefs and values. It could also be viewed as a piece of societys social fabric, a part of a larger scale of commonly shared perception of social groups (Stangor Schaller, 1996). It becomes a question if the existence of social reality is individualized or dwell as a shared understanding. The particular distinction between the two lies mainly in the assumed relevance of this common knowledge and its importance and impacts on the lives of each individual within the social group (Stangor Schaller, 1996). Racism Stereotyping could evolve into other socio-political factors that may render detrimental effects. Racism can be widely utilized in everyday life. The concept of racism is negatively burdened, injected with political and moral descriptions. Therefore, claiming someone to be a racist is considered as inappropriate and even immoral. The definition is inclined for connoting political abuse. The definition also offers significance in the field of academics and raise political and moral argumentation (Miles Brown, 2003). Racism is the generalized body of information, real or imaginary, pertaining to a person or group of individual that render benefits or gain on the racist and expense on the one being judged (Memmi et al. , 1999). Racism is the mistreatment of people based on their race. We all belong in a particular race, human race. This resulted from the inequality in the social structures and configurations. It is also a product of inequitable and unequal stratification of economic, political and social means (Sherover-Marcuse, 2000). Racism is defined improperly. There is no established definition for racism, if we would think philosophically, if racism is defined as morally and politically undesirable. There must be a shared understanding on why it is unacceptable. the definition could not established a concrete criteria on whether an account is racist or not. Utilizing the existing definition, we could be all racists. If the broad definition will be adhered, then it impliedly says that American people are all racists (Miles Brown, 2003). Sometimes the description on the person being discriminated is inaccurate and they were being judged based on their color and cultural identity. Thus, it result to social empowerment of the racists and the judgments were passed into concurrent society that affects everyone (Sherover-Marcuse, 2000). Sexism Another socio-political factor that becomes a major dilemma in the society is the concept of sexism. Sexism directs us in the delving into gender studies, but it is a critical issue for it deals with a lot of aspects of gender inequality. Sexism is the inherent belief of the superiority of a particular sex over the other and therefore claims the right to be dominant in society (Curry, 1995). This will lead us in perceiving that in conventional society male is dominant over the female specie. This is evident in our history books and even in the holy scriptures of religions. Most of the messages were addressed to males. The dominance of males connotes the inferiority of females and the deprivation of prerogatives and rights enjoyed by the other sex. Many uprisings of the women sectors have been accounted in history in attempt in obtaining liberation and equality in treatment and opportunities. For example, the acquisition of suffrage is a pivotal event in womens history and the ability to participate in major economic and political activity was celebrated by women in the society. Although there are claims that sexism no longer exists in our society. We could say that it is impliedly manifested through various of means. There were still claims in mistreatment in the workplace and females were not given equal opportunities. Mass media greatly contributes in reinforcing the concept of sexism through the portrayals of women in ads and programs depicting the traditional concept of women as inferior, weak, dependent and as home providers. There is a lack of portrayal of the emerging female specie- dynamic, strong and nurturing. Psychological Impact These socio-political factors have an undeniable psychological impact to a culturally diverse individual. Each person was raised in a society with inherent culture established that distinguished the group of individuals to other group of individuals. Every one of us is composed of layers of cultural learning ascribed or acquired that make up the totality of our individuality. These layers of cultural teachings were acquired through various influences. Every individual was shaped ethnicity, race, religion, education, profession, organization and parents. These attributes are the primary factors that affect the formation of the individuality of a person. Ones gender, peers, family and origin are also vital in redefining the ones cultural identity (Gardenswartz Rowe, 1998). Because we acquired our cultural teachings in different sources we are programmed differently and were reared heterogeneously. Therefore our individual differences make us culturally diverse. The socio-political factors aforementioned could be well-explained and examined under the specific branch of psychology- Evolutionary Psychology. This new branch of psychology is focused on establishing explanations on mental and psychological traits of individuals. There is a growing symbiotic and significant relationship between environmental and social psychology. Evolutionary theory is slowly infiltrate social psychology researchers. Evolutionary psychology examines new frontiers with specialty, like the socio-political factors mentioned above (Perilloux Webster, 2008). It was argued that these factors shaped a persons psychological mechanisms. It was stated that the concept of self do not exist but it was layers of psychological mechanisms (Perilloux Webster, 2008). These socio-political factors discussed above are somehow interconnected with each other. Stereotyping could render significant psychological impacts in the upbringing of an individual. They may obtain wrong information about persons they stereotyped. For stereotypical roles, though shared by a lot of people could not be regarded as true. Stereotyping will reflect implicit behavioral comments like that there are roles more appropriate for men and women. This will create a general perception that some roles are only intended for a particular sex and that the other could not offer strong decisions and capabilities in participating in these certain fields (Swim et al. , 2001). This also indicates that men are better in male-dominated fields (Swim et al. , 2001). Due to the stereotypical roles and attributes being tagged to persons, they were undermined of their capabilities and capacities. It will also say that women are inferior and passive (Swim et al. , 2001), which is untrue about women nowadays. More women are participating in the fields dominated by male before and show exemplary performance in doing tasks. But the greatest implication would be an animosity for women (Swim et al. , 2001). Because of stereotyping, people will create an attitude towards the stereotyped individual.

Progression of Morality Essay Example for Free

Progression of Morality Essay Throughout the centuries, morality has guided the beliefs and actions of families as well as societies. It has brought them together but it has also torn them apart. These beliefs continue to be a dominant force throughout many societies, affecting everything from what people wear to how they behave. The progression of morality has been a powerful basis for societies. The spectrum of greater access to the ideas and customs of different cultures, because of technology mass media and entertainment, especially television, has resulted in a diverse cultural blending. As cultural ideas move with people among cultures, some beliefs seem to have a greater effect than others. Blending of Morality In the 21st century, ideas from the West have been one of the dominant forces in shaping cultures in many parts of the world. The United States domination of the worldwide mass media has influenced different cultures significantly, leaving behind a legacy of western customs and ideas. The English language is also spoken globally, mainly because of Europe’s history of colonization in the Americas, Asia, and Africa. It has emerged as one of the premier international languages. English is the most common language used on the Internet and is responsible, in part, for the emergence of a dynamic global culture. Western business suits are standard uniforms among many people. McDonald’s hamburgers and Coca-Cola soft drinks can be purchased in many countries around the world. Many Disney characters are now commonly recognized because of Human World Views: HUM 360 Walt Disney theme park locations in Paris, Tokyo, and Hong Kong. These examples of common dress, food, and entertainment all originate from America and are incorporated into other cultures. Western influence has also affected ways of thinking as well in many cultures with the expansion of materialism. This American mindset of placing high value on acquiring material possessions seems to have been adopted by many people of different cultures. Conflicts of Morality There have also been many historical conflicts among people of different racial, national, linguistic, or cultural groups. Some ethnic or religious groups have had moral issues that reach back for decades and, in some, for centuries. Examples of such conflicts would be â€Å"the troubles† between Catholics and Protestants in Northern Ireland (McKittrick McVea, 2002) and the hostilities between Palestinians and Jews in the Middle East. People caught in these conflicts, that have been characterized by terrible violence, sometimes suffered torture or massacres of their whole towns or villages. An exemplification of such extreme immoral behavior is the violence imposed on the Kurds, a nomadic group in southwest Asia. For decades, Kurds have wanted their own separate country. But because their traditional lands cross the borders of three nations, it’s been an unsettling issue (McDowall, 2004). The Turks have responded to the Kurdish nationalism by forbidding Kurds to speak their native language. The Iranians have also persecuted the Kurds, attacking them over religious issues. In the late 1980’s, the Iraqis used chemical weapons on the Kurds, known as the Halabja Massacre or Bloody Friday , killing around 5,000 people (Esteri, 2012). Throughout history and present day, morality has played an important role in bringing people together. It has also, at times, driven them apart. Morality guides the beliefs and behaviors of its members. Whatever emotions it prompts, morality remains one of the most powerful influential forces on mankind in the world. ?

Effects of Modernity on the City

Effects of Modernity on the City Cities in the modern age have fast been experiencing the notion of modernity. In this essay, I will examine how Cities experience it modernity different ways and their consequent relationships. Modernity is the cultural experience of contemporary city life and the associated cultural valorisation and celebration of innovation and novelty. It can occur through economic development as cities progress financially; also, it can be imported from other nations and cities that are perceived as ‘modern’. However, the limited criteria as to what is classed as ‘modernity’ will also be challenged as well as the predictions for the future of cities and modernity. Cities allow and help achieve modernity primarily through being prime hotspots for economic development. Within a city environment a range of different functions exist, all of which combine to increase the economic and political stronghold of a particular city. Economic development is seen as a key means to reaching a perceived ‘modernity’, closely associated with the west. Until recently, focus was not concerned with Cities but rather international and national policies but World Bank indicatives in the 90s that saw ‘cities as engines of economic growth with the importance of stretching the urban development imagination’ changes this viewpoint. Large Cities were now looked upon as the functioning core of national economies. For instance, city development strategies (CDS) had the common objective of incorporating the diverse concerns of citizens, businesses and governance, which meant that the needs of globalizing sectors and the needs of the poorest citizen s were satisfied. This can be seen in the case study of Johannesburg where the unevenness of development between white and black people was very high. Post-apartheid still saw the city being fragmented and divided with local governance, which were still racist and prejudiced. For instance, one fifth of the city’s population were living in informal settlement while more than 10 % of the city’s population had to make do without access to most basic services. This meant that a city wide perspective was vital, schemes emphasised on the provision of of infrastructure both within townships and also to support new connections between segregated townships and economic opportunities in the central city. Overall, the scheme was effective, although a number of factors undermined its efficiency. It has helped contribute Johannesburg into the world city realm with many people benefitting and flourishing with a strong sense of culture and community. This shows that schemes to enhanc e the economic growth of cities go hand in hand with modernity since Johannesburg is significant better relatively than before. However, for increased effectiveness more schemes must focus on on the ‘ordinary city’ and their various specifics and complexities. Cities also supposedly reach a higher stage of ‘modernity’ after embracing other cultures, identities and values. For example New York, which is symbolised as the most powerful city in the world and the most popular international symbol of urban modernity, was dependent on borrowings from other places. Lewis Mumford stated that ;one would not do justice to the American tradition in architecture if one neglected the part played in our own development by forces originating outside our country’. Some of the influences notes were cleans forms of Japanese design, the importation of the veranda from India and the heavy European beaux-arts influence on American architectural design. The many different styles which made New York iconic and distinctive and which was an icon of the west can mostly be originated from elsewhere. The ‘iconic’ west was also seen as a yardstick and ideal for modernity in many different cities. This was the case in Brazil where local narratives about the ambition to become modern were inextricably bound up with the framing as coming from outside. Cities using other ideas demonstrates the interconnectability of modernity and despite differences in values, a heavyweight type of modernity may be favoured. This is also normally the primary view of elites such as decision makers, businessperson and generally those with authority as ‘the importation of modern styles from other places in Brazil (London, Paris, and Buenos Aires) was as a source of delight and a marker of achievement of the elite’. Although this may have exterior motives such as attracting visitors, tourists and workers that will directly and indirectly help an economy. Although this is a two-way relationship as ‘Latin America also had considerable impact on Europe in terms of the development of the competing modern architecture of the international style’. This shows that modernity is also subject to constant changes and is no t dependent on any country but rather a wide range. The definition as to what is recognized as a modern city is challenged. Some writers have suggested that the urban West with its institutions, buildings and entertainment is the ideal and anything which doesn’t share characteristics of a similar nature is seen as ’primitive’ and ‘backward’ and in needed of reformation. Current meanings of the term modern have been largely defined by early twentieth-century Western scholars. To be crude, modernity could be understood as simply the Wests self-characterisation of itself in opposition to others and elsewheres that are imagined to be not modern, an opposition that was strongly reinforced through the mundane practices of colonisation (King 2004: 71). Although in recent urban studies, the consensus points towards the notion that Modernity is complex and encompassing of a variety of contemporary cities. Cities are places where a collection of people assemble and engage in economic and social relations in man y different ways and links which leads to unique cultural meaning developing. ‘Cities everywhere perform this function of facilitating circulation, assemblage and interaction of enabling diverse forms of modernity to be imagined and practised’. For the supposed idea of western modernity to exist, it has to be counter posed with other societies that are deemed backward and more traditional. As ‘The city has performed an important function in theorising modernity: it has coalesced and helped to make visible a certain range of self-descriptions for the West’. Park 1967: 33) ‘To the city then, rationality, thought, distanciated social relations; to the ‘primitive, intimacy, feeling, sentiment, instinct and the absence of reason’. However, the key argument is that cities, which contrast this perspective, still have aspects of ‘modernity’ as they are constantly changing and becoming different in varieties of ways. The relationship between cities and modernity in the future is unlikely to remain constant. With the population of urban cities expected to double by 2030, increasing by an extra 2 billion inhabitants, structural changes are of great importance. Subsequently policy makers and practitioners are focusing on much stronger development interventions without increasing inequality. This could have an impact on modernity as cities now have increased funds and resources that are much more aligned to specific needs to compete. Secondly, with globalisation growing in importance day by day, modernity has become even more important. The world is becoming urban and cities are becoming integrated into globalisation, which means that it is vital that cities are to the needs of various stakeholders that are interested. For instance, globalisation has led to city management strategies focusing on efficiency and effectiveness to encourage inward investment from transnational companies, bilateral and mu ltilateral aid agencies as well as individuals. In addition, business clusters are becoming of increased importance, as proximity is valued highly so again these are focused on in City Development Strategies (CDS). Thirdly, the primitive is becoming more embodied into ideas of modernity because despite great scientific strides, tradition is becoming increasingly emphasised. It is vital that a variety of modernities can co-exist in a harmonising way and not necessarily contrary to each other. To conclude modernity is an ongoing process where anyone and everyone can be in. A city can still in its realms despite being completely abstracts to another city in ‘modernity’. A limited scope in terms of perception of it denotes that cities are all ordinary. They diverse, dynamic and complex arenas of political, social and economic life. Cities are also developing constantly due to economic developments that helps to develop modernity and change; despite limitations various schemes and initiatives are really making significant changes to development and modernity. The borrowed aspects of modernity from other nations also supports this idea, modernity is dynamic and cities all rely on each other for inspiration. The future is also uncertain, with many changes occurring, modernity may be heightened tremendously, with cities possibly becoming places of unique, distinct and pleasant realms.

Tom Sawyer :: English Literature Essays

Tom Sawyer Growing up in a small community can be hard, I won’t be the only on to tell you that, but living in one in the 1800’s was tougher. This is especially true when there’s a murdering robber who wants revenge lurking about. But it’s got its good qualities too, I mean, there’s the picnics and the adventures and everybody knows everybody so no ones threatening anybody with their strange presence. This is why The Adventures of Tom Sawyer by Mark Twain display such a realistic life; it portrays both the Good and Evil in a little society. There’s Evil in a small town? Isn’t that impossible? Amazingly enough, no, it’s not. A prime example of it comes straight from the book in the character Injun Joe. When we first meet Injun Joe, he’s taking part in the despicable crime of grave robbing. That’s bad enough, but he adds on to his sins with a more heinous act; murder. If you still don’t believe that’s Evil, then maybe his last two extensions are. He starts with a bout of robbery and tallies it all up with a threat to an old woman named Widow Douglas. So you see there is such a thing as iniquity in a place like Tom’s home town. But like I said, you also have some good no matter where you go, and this is especially true in the book, too. If you still want to find me at fault, just ask Huck Finn, he’d back me up anytime. See, poor Huck, though unwanted by the city adults, was worshipped by all the local boys and cherished by a few elders here and there. But there was no elder more loving towards him than Widow Douglas, especially after he saved her from Injun Joe’s wrath. She bestowed upon him the kindest, most generous gift she could think of, and that was the right to call her Mother. You can’t disagree with me now, if a drunkard’s son can become the child of a respected family, then there’s got to be some humanity in the town, too. That’s all just a story though, right? Nothing like that happens in real life, does it? I beg to differ, and after I support my claim, you probably will, too? It’s right here in the town I grew up in, all of it. Our community’s Evil struck when I was little, a mad drunk stormed through a bar and shot and killed three people.

Hammurabi :: Essays Papers

Hammurabi Of the many law codes surviving from the ancient Middle East, perhaps the most famous is the Code of Hammurabi, sixth King of the Amorite Dynasty of Old Babylon. Today, the code, engraved in stone takes on a unique form as a piece of art. However, decoded it is clear that this stone was obeyed and served as a sort of political propaganda. The noted stone found in 1901 by French archeologists, now rests in the Paris Louvre where it is preserved from moisture and natural decomposition. The raw material consists of an 8 ft. tall block of black basalt engraved with cuneiform. It clearly intended to be observed in public. The immense size of this rock was a sign of strength and authority and its dark coloration an ominous warning. At the top is a depiction of Hammurabi receiving the code from Shamash the sun god or god of justice. In this picture the two men are the same size, which symbolizes Hammurabi’s power being equal to that of the gods. Below this is a prologue praising Hammurbai’s wisdom and power. To further its legitimacy the law code was in those days regarded as subject for prayer, though the prayers here are chiefly cursings of whoever shall neglect or destroy the law. The content of the code regulates in clear and definite strokes the organization of society and the harsh punishment for crimes. For example, the witness who testifies falsely is to be slain. Indeed, more serious crimes were punishable with death. If a man builds a house poorly, and it falls and kills the owner, the builder is to be slain. If the owner’s son is killed, the builder’s son is slain. The idea of â€Å"eye for an eye, tooth for a tooth† could not be debated.

Phantom Warriors :: essays research papers

Title: Phantom Warriors ,book 1 Author: Garry A.Linderer Main characters: many LRRP’s LRP’s and Ranger nits in Vietnam   Ã‚  Ã‚  Ã‚  Ã‚  Summary: The book I read was about LRRP’s (long range reconnaissance patrol) , LRP’s (long range patrols) , and Ranger units in Vietnam. The book told stories of several different types of operations in the units most challenging times. The job of a unit of this type was to infiltrate a designated RA( recon area) stealth like as possible with a four to seven man team (sometimes larger). Once on the ground a team would set up an OP ( observation post) and would always try and remain undetected. Because of the small number of size an LRP would always avoid contact with the enemy but , the book proved to me that when confrontation was inevitable the special forces units proved themselves a truly deadly force. I would say at least ninety percent of the time LRP’s would find themselves out numbered in a confrontation. If at all possible they would try and escape but sometimes fighting your way out was the only way. The LRRP Detactchment, 1st Brigade, 101st Airborne Division had a problem like this. Staff Sergeant Papy Lynch and his team where patrolling a high activity area when there team was abutted by fifteen or twenty Viet Cong. Off the bat three men went down two seriously injured and the other shot in the head. There six man team was then a three man team. The two men at camp where busy fending off the invaders while one man that was off doing his â€Å"business† was finding his way back. He too was cought up in the unexpected fire and went down. Staff Sergeant Lynch called in the coordinates and after the ammo and grenades where almost out , air support showed up. Most of the VC where killed or ran away in fear of â€Å"Death from Above†. This was one of the most heroic stories in the book.   Ã‚  Ã‚  Ã‚  Ã‚  Weaknesses: This was a good book. I couldn’t find many weaknesses at all . The one thing I did notice was the similarity in each of the stories. It seamed liked the same thing would happen in a row. The team would usually end up running from a force of

Electronic Payment System

UNIT – 3 Electronic Payment System Contents †¢ What is E-payment? †¢ Types of E-payment Systems †¢ Digital Token-based Electronic Payment Systems †¢ Smart Cards & Electronic Payment Systems †¢ Credit Card-based Electronic Payment Systems †¢ Risk & Electronic Payment Systems †¢ Designing Electronic Payment System What is E-payment ? †¢ E-payment systems is the mechanism of transferring money over the Internet and technology used in this transfer is called as EFT. EFT defined as â€Å" any transfer of fund initiated through an e-terminal, telephonic instrument, or computer or magnetic tape to order, instruct or authorize a financial institution to debit or credit an account. It is mostly used for Business to business (B2B) commerce where companies doing business together tend to use electronic data interchange (EDI) system to send each other bills and notices of payment. E-Payment †¢ Information online offline $Products/services Adva ntages of E-Payment †¢ †¢ †¢ Increase payment efficiency – Reduce transaction costs – Enable trade in goods and services of very low value Increase convenience of making payments – Payment can be made swiftly and remotely using various devices Can be used for – e-commerce / e-Trade – For other purposes like paying bills, taxes, etc MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 1Categories of EFT Banking and financial payments * Large-scale or wholesale payment * Small scale or retail payment * Home banking Retailing payments * Credit cards * Debit cards On-line electronic commerce payments * Token-based payment system ~ Electronic cash ~ Electronic checks ~ Smart cards or debit cards * Credit card-based payment systems ~ Encrypted credit cards ~ Third-party authorization numbers Main factors when selecting e-payment method †¢ Availability (bank system, laws and regulations) †¢ The consideration of size and type of business, type of a target group of consumers, types of products and services. The ability to provide security against fraudulent activity †¢ Being cost effective for low value transaction fees †¢ Being protective of the privacy of the users †¢ Easy to use, and being convenient for purchasing on the web based e-business Token-based E-Payment Systems Electronic tokens are the new financial instruments which are in the form of electronic cash/money or checks.Electronic tokens are same as cash that is backed by bank. They are of three types: 1. Cash or real-time ( e-cash) 2. Debit or Prepaid (smart cards, e-purses) 3. Credit or Postpaid (credit/debit cards, e-checks) E-cash Electronic cash is a consumer-oriented electronic payment. Though it replaces the cash but still cash is quite dominant form of payment for three reasons: 1. Lack of trust in banking system 2.Inefficient clearing and settlement of non-cash transaction 3. Negativ e real interest rates paid on bank deposit Advantages of cash over credit cards †¢ It is negotiable †¢ Cash is a legal tender †¢ Cash is a bearer instrument †¢ It need require bank account to operate †¢ No risk on the part of acceptor that the medium of exchange may not be good MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 2Properties of e-cash E-cash must have following four properties: Monetary values: Interoperability Retrievability Security E-cash in Action †¢ E-cash based on cryptographic systems called â€Å"digital signature† †¢ †¢ †¢ This method involves pair of two numeric keys (very large number or integer) that work in tandem (cycle): one for encoding and another for decoding. Message encoded with one numeric key can only be decoded with other numeric key and none other. The encoding key is kept private while the decoding key is made public. E-checks †¢ E-checks are a nother form of electronic tokens. †¢ †¢ A new electronic version of paper check. E-check is an instruction to a financial institution to pay a given amount of money to the payee. It is a specially formatted email message sent over the Internet. It contains as the same information as on paper based check. Check service providers PayByCheck (http://www. paybycheck. com) CyberSource (http://cybersource. com) Transaction Payment Sequence in E-check system Payer Transfer e-check Payee Deposit e-check Forward e-check for payer authentication Bank Accounting Server MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof.Vanita Joshi, SOM, SIMS, Indore 3 Transaction Payment Sequence in E-check system †¢ Buyer must register with third party account server using electronic check. †¢ On receiving the check, the seller presents it to accounting server for verification and payment. †¢ The accounting system verifies the digital signature on the check. †¢ Proper ly signed and endorsed checks can be electronically exchanged between financial institutions through electronic clearing house. Advantages of E-Check †¢ They work in the same way as traditional checks. †¢ E-checks are suited for micro payments. Eliminate the need for expensive process reengineering and taking advantage of the banking industry. †¢ Financial risk is assumed by accounting server. †¢ E-checks create a float through third-party accounting server. They make money out of buyers and sellers transaction by providing deposit account. Difference b/w EFT and E-check †¢ In E-Cheque, electronic versions of the cheque are issued, received & processed. So, payee issues an E-Cheque for each payment. †¢ In EFT transfer automatic withdrawals are made for monthly bills or other fixed payments; no cheques are issued.Smart cards †¢ A smart card is a plastic card with an embedded microchip containing information about you. †¢ A smart card can store about 100 times the amount of information that a magnetic strip plastic card can store. †¢ A smart card contains private user information, such as financial facts, private encryption keys, account information, credit card numbers, health insurance information, etc. †¢ So far not successful in U. S. , but popular in Europe, Germany, Singapore and Japan to pay for public phone call, transportation.Mondex Smart Card †¢ Holds and dispenses electronic cash (Smart-card based, stored-value card) †¢ Developed by MasterCard International †¢ Requires specific card reader, called Mondex terminal, for merchant or customer to use card over Internet †¢ Supports micropayments and works both online and off-line at stores or over the telephone †¢ Secret chip-to-chip transfer protocol †¢ Loaded through ATM – ATM does not know transfer protocol; connects with secure device at bank MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi , SOM, SIMS, Indore Mondex Smart Card Processing Mondex Smart Card †¢ Disadvantages – Card carries real cash in electronic form, creating the possibility of theft – No deferred (overdue) payment as with credit cards – cash is dispensed immediately Types of Smart cards Smart cards are basically of two types: 1. Relationship-based Smart Cards 2. Electronic Purses and Debit Cards Relationship-based Smart Cards It is the enhancement of existing card services that offer customers far better options like: 1. Access to multiple accounts (debit, credit, e-cash) on one card. 2.Offer various functions ( cash access, bill payment, balance inquiry, fund transfer) 3. Multiple access options at multiple location using multiple access device (ATM, PC, PDA or screenphone etc) Electronic Purses and Debit Cards Electronic Purses or E- wallet are the smart cards embedded with programmable microchip that store sum of money instead of cash. Once a purse is loaded with money it require card reader vending machine which verifies its authenticity . Then after amount is deducted from balance. It shows the remaining balance on the card hence eliminate the small bill in busy stores.E-wallets when depleted can be recharged with money . MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 5 Credit cards-based e-payment system Credit Cards †¢ A credit card is a small plastic card issued to users dealing in e-commerce. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. †¢ A credit card is different to a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant.Credit cards-based e-payment system Customers who purchase any goods send their credit card details to the service provider involved and the credit card organization will handle thi s payment. Online credit card payment has following categories: 1. Payment using plain credit card details 2. Payments using encrypted credit card details 3. Payment using third-party verification Entities involved in Credit card Transaction Consumer (Buyer or Card holder) Merchant (Seller) Card Issuer (Consumers’ Bank) Acquirer or Principal (Merchant’s Bank) Card Association (Visa, Master Card etc) Third party processor How an Online Credit Transaction WorksEncryption and Credit cards Encryption process starts when credit card information is entered into a browser and sent securely over network between buyer to seller. Encryption process includes following steps: 1. Customer presents his credit card information securely to merchant. 2. Merchant validates the authenticity of card holder 3. Merchant relays this information to its bank or on-line card processor. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 6 4. The bank r elays the information to customer’s bank for authorization approval 5.The customer’s bank returns the credit card , charge authentication and authorization to the merchant Processing Payment with Encrypted Third-party authorization and Credit cards In third party processing, consumer register with third party on the internet to verify emicrotransaction. The companies providing third party payment service on internet are: ( First Virtual) †¢ http://www. fv. com †¢ http://www. openmarket. com †¢ http://www. 2checkout. com/ †¢ http://www. paypal. com/ Payment can be made by credit card via clearing house.Online Third-Party Processor (OTPPs) has following steps for buying information online. 1. Consumer registers for an OTPP a/c that is backed by credit card. 2. To purchase customer request merchant by her OTPP account no. 3. Merchant then contact the OTPP payment server with customer’s account no. 4. OTPP payment server verifies the customerâ₠¬â„¢s account no. for vender (merchant) & checks for sufficient funds. 5. OTPP server send a message to buyer that can be responded back by buyer as ; yes/agree; No/disagree; fraud. 6.If OTPP gets ‘Yes’ from customer, merchant is informed & then customer is allowed to download material. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 7 Online Payment Processing using a Third-party Processor Risk in using Credit cards †¢ Customer uses a stolen card or account number to fraudulently purchase goods or service online. †¢ Many people who will be on the Internet have not even had their first Web experience. †¢ Hackers find the ways into an e-commerce merchant’s payment processing system and then issue credits to hacker card account numbers. Many users are also likely to be younger and have less access to credit and debit cards †¢ Many purchases they make will be micropayments. †¢ Credit cards canno t be used for large sums of B2B transactions †¢ Customer falsely claims that he or she did not receive a shipment Limitations of Online Credit Card Payment Systems †¢ Security – neither merchant nor consumer can be fully authenticated. †¢ Cost – for merchants, around 3. 5% of purchase price plus transaction fee of 2030 cents per transaction. †¢ People living in rural areas don’t have same access to computers and Internet that others do. Social equity – many people do not have access to credit cards (young and old age), disabled, individuals who are not computer savvy and individuals who cannot afford cards ( poor credit risk). Designing Electronic Payment Systems Following criteria should be satisfied while designing any new E-payment System: 1. Privacy 6. Pricing 2. Security 7. Standards 3. Intuitive Interface 4. Database Integration 5. Brokers MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Ind ore 8 Electronic Payment System UNIT – 3 Electronic Payment System Contents †¢ What is E-payment? †¢ Types of E-payment Systems †¢ Digital Token-based Electronic Payment Systems †¢ Smart Cards & Electronic Payment Systems †¢ Credit Card-based Electronic Payment Systems †¢ Risk & Electronic Payment Systems †¢ Designing Electronic Payment System What is E-payment ? †¢ E-payment systems is the mechanism of transferring money over the Internet and technology used in this transfer is called as EFT. EFT defined as â€Å" any transfer of fund initiated through an e-terminal, telephonic instrument, or computer or magnetic tape to order, instruct or authorize a financial institution to debit or credit an account. It is mostly used for Business to business (B2B) commerce where companies doing business together tend to use electronic data interchange (EDI) system to send each other bills and notices of payment. E-Payment †¢ Information online offline $Products/services Adva ntages of E-Payment †¢ †¢ †¢ Increase payment efficiency – Reduce transaction costs – Enable trade in goods and services of very low value Increase convenience of making payments – Payment can be made swiftly and remotely using various devices Can be used for – e-commerce / e-Trade – For other purposes like paying bills, taxes, etc MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 1Categories of EFT Banking and financial payments * Large-scale or wholesale payment * Small scale or retail payment * Home banking Retailing payments * Credit cards * Debit cards On-line electronic commerce payments * Token-based payment system ~ Electronic cash ~ Electronic checks ~ Smart cards or debit cards * Credit card-based payment systems ~ Encrypted credit cards ~ Third-party authorization numbers Main factors when selecting e-payment method †¢ Availability (bank system, laws and regulations) †¢ The consideration of size and type of business, type of a target group of consumers, types of products and services. The ability to provide security against fraudulent activity †¢ Being cost effective for low value transaction fees †¢ Being protective of the privacy of the users †¢ Easy to use, and being convenient for purchasing on the web based e-business Token-based E-Payment Systems Electronic tokens are the new financial instruments which are in the form of electronic cash/money or checks.Electronic tokens are same as cash that is backed by bank. They are of three types: 1. Cash or real-time ( e-cash) 2. Debit or Prepaid (smart cards, e-purses) 3. Credit or Postpaid (credit/debit cards, e-checks) E-cash Electronic cash is a consumer-oriented electronic payment. Though it replaces the cash but still cash is quite dominant form of payment for three reasons: 1. Lack of trust in banking system 2.Inefficient clearing and settlement of non-cash transaction 3. Negativ e real interest rates paid on bank deposit Advantages of cash over credit cards †¢ It is negotiable †¢ Cash is a legal tender †¢ Cash is a bearer instrument †¢ It need require bank account to operate †¢ No risk on the part of acceptor that the medium of exchange may not be good MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 2Properties of e-cash E-cash must have following four properties: Monetary values: Interoperability Retrievability Security E-cash in Action †¢ E-cash based on cryptographic systems called â€Å"digital signature† †¢ †¢ †¢ This method involves pair of two numeric keys (very large number or integer) that work in tandem (cycle): one for encoding and another for decoding. Message encoded with one numeric key can only be decoded with other numeric key and none other. The encoding key is kept private while the decoding key is made public. E-checks †¢ E-checks are a nother form of electronic tokens. †¢ †¢ A new electronic version of paper check. E-check is an instruction to a financial institution to pay a given amount of money to the payee. It is a specially formatted email message sent over the Internet. It contains as the same information as on paper based check. Check service providers PayByCheck (http://www. paybycheck. com) CyberSource (http://cybersource. com) Transaction Payment Sequence in E-check system Payer Transfer e-check Payee Deposit e-check Forward e-check for payer authentication Bank Accounting Server MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof.Vanita Joshi, SOM, SIMS, Indore 3 Transaction Payment Sequence in E-check system †¢ Buyer must register with third party account server using electronic check. †¢ On receiving the check, the seller presents it to accounting server for verification and payment. †¢ The accounting system verifies the digital signature on the check. †¢ Proper ly signed and endorsed checks can be electronically exchanged between financial institutions through electronic clearing house. Advantages of E-Check †¢ They work in the same way as traditional checks. †¢ E-checks are suited for micro payments. Eliminate the need for expensive process reengineering and taking advantage of the banking industry. †¢ Financial risk is assumed by accounting server. †¢ E-checks create a float through third-party accounting server. They make money out of buyers and sellers transaction by providing deposit account. Difference b/w EFT and E-check †¢ In E-Cheque, electronic versions of the cheque are issued, received & processed. So, payee issues an E-Cheque for each payment. †¢ In EFT transfer automatic withdrawals are made for monthly bills or other fixed payments; no cheques are issued.Smart cards †¢ A smart card is a plastic card with an embedded microchip containing information about you. †¢ A smart card can store about 100 times the amount of information that a magnetic strip plastic card can store. †¢ A smart card contains private user information, such as financial facts, private encryption keys, account information, credit card numbers, health insurance information, etc. †¢ So far not successful in U. S. , but popular in Europe, Germany, Singapore and Japan to pay for public phone call, transportation.Mondex Smart Card †¢ Holds and dispenses electronic cash (Smart-card based, stored-value card) †¢ Developed by MasterCard International †¢ Requires specific card reader, called Mondex terminal, for merchant or customer to use card over Internet †¢ Supports micropayments and works both online and off-line at stores or over the telephone †¢ Secret chip-to-chip transfer protocol †¢ Loaded through ATM – ATM does not know transfer protocol; connects with secure device at bank MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi , SOM, SIMS, Indore Mondex Smart Card Processing Mondex Smart Card †¢ Disadvantages – Card carries real cash in electronic form, creating the possibility of theft – No deferred (overdue) payment as with credit cards – cash is dispensed immediately Types of Smart cards Smart cards are basically of two types: 1. Relationship-based Smart Cards 2. Electronic Purses and Debit Cards Relationship-based Smart Cards It is the enhancement of existing card services that offer customers far better options like: 1. Access to multiple accounts (debit, credit, e-cash) on one card. 2.Offer various functions ( cash access, bill payment, balance inquiry, fund transfer) 3. Multiple access options at multiple location using multiple access device (ATM, PC, PDA or screenphone etc) Electronic Purses and Debit Cards Electronic Purses or E- wallet are the smart cards embedded with programmable microchip that store sum of money instead of cash. Once a purse is loaded with money it require card reader vending machine which verifies its authenticity . Then after amount is deducted from balance. It shows the remaining balance on the card hence eliminate the small bill in busy stores.E-wallets when depleted can be recharged with money . MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 5 Credit cards-based e-payment system Credit Cards †¢ A credit card is a small plastic card issued to users dealing in e-commerce. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. †¢ A credit card is different to a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant.Credit cards-based e-payment system Customers who purchase any goods send their credit card details to the service provider involved and the credit card organization will handle thi s payment. Online credit card payment has following categories: 1. Payment using plain credit card details 2. Payments using encrypted credit card details 3. Payment using third-party verification Entities involved in Credit card Transaction Consumer (Buyer or Card holder) Merchant (Seller) Card Issuer (Consumers’ Bank) Acquirer or Principal (Merchant’s Bank) Card Association (Visa, Master Card etc) Third party processor How an Online Credit Transaction WorksEncryption and Credit cards Encryption process starts when credit card information is entered into a browser and sent securely over network between buyer to seller. Encryption process includes following steps: 1. Customer presents his credit card information securely to merchant. 2. Merchant validates the authenticity of card holder 3. Merchant relays this information to its bank or on-line card processor. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 6 4. The bank r elays the information to customer’s bank for authorization approval 5.The customer’s bank returns the credit card , charge authentication and authorization to the merchant Processing Payment with Encrypted Third-party authorization and Credit cards In third party processing, consumer register with third party on the internet to verify emicrotransaction. The companies providing third party payment service on internet are: ( First Virtual) †¢ http://www. fv. com †¢ http://www. openmarket. com †¢ http://www. 2checkout. com/ †¢ http://www. paypal. com/ Payment can be made by credit card via clearing house.Online Third-Party Processor (OTPPs) has following steps for buying information online. 1. Consumer registers for an OTPP a/c that is backed by credit card. 2. To purchase customer request merchant by her OTPP account no. 3. Merchant then contact the OTPP payment server with customer’s account no. 4. OTPP payment server verifies the customerâ₠¬â„¢s account no. for vender (merchant) & checks for sufficient funds. 5. OTPP server send a message to buyer that can be responded back by buyer as ; yes/agree; No/disagree; fraud. 6.If OTPP gets ‘Yes’ from customer, merchant is informed & then customer is allowed to download material. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 7 Online Payment Processing using a Third-party Processor Risk in using Credit cards †¢ Customer uses a stolen card or account number to fraudulently purchase goods or service online. †¢ Many people who will be on the Internet have not even had their first Web experience. †¢ Hackers find the ways into an e-commerce merchant’s payment processing system and then issue credits to hacker card account numbers. Many users are also likely to be younger and have less access to credit and debit cards †¢ Many purchases they make will be micropayments. †¢ Credit cards canno t be used for large sums of B2B transactions †¢ Customer falsely claims that he or she did not receive a shipment Limitations of Online Credit Card Payment Systems †¢ Security – neither merchant nor consumer can be fully authenticated. †¢ Cost – for merchants, around 3. 5% of purchase price plus transaction fee of 2030 cents per transaction. †¢ People living in rural areas don’t have same access to computers and Internet that others do. Social equity – many people do not have access to credit cards (young and old age), disabled, individuals who are not computer savvy and individuals who cannot afford cards ( poor credit risk). Designing Electronic Payment Systems Following criteria should be satisfied while designing any new E-payment System: 1. Privacy 6. Pricing 2. Security 7. Standards 3. Intuitive Interface 4. Database Integration 5. Brokers MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Ind ore 8