Thursday, October 31, 2019
The Value of Life Coaching in Uncertain Economic Times Article
The Value of Life Coaching in Uncertain Economic Times - Article Example In fact, everyone tries to maximize his or her benefits at the expense of others since the resources available for the affluent metropolitan lifestyle of the middleclass are scarce and costly. How could one achieve things and conquer life without compromising on lifestyle and personal affluence Once again, the world is facing a financial recess with all its severities and retrogressive effects on the lives of the hard-working people from around the world as it occurred at the time of the Great Depression. Share markets are collapsing. National economies are being bankrupted. The employed looses his/her job on one fine morning and finds nothing for subsistence and survival. How could one still think of a successful career and what could be done for guaranteeing a life with dignity The sophisticated efforts of human resource development that aims to address the complexities life in twenty first century has led to the spawning of innovations such as life coaching. Life coaching enables one to churn one's own life in difficult times with the help of a trained professional as it becomes necessary to 'born again' in order to fight back against the vicissitudes of life in the new millennium. Life coaching not only brings about changes in ones life that could provide him with a place in the class of the fittest that are capable of survival but also empower the trained to sustain such desired changes. Life coaching enhances both physical and mental capabilities and potentials in order to make one competent enough to be successful in all the spheres of life ranging from material to spiritual. Therefore, eminent theorists such as Zeus and Skiffington define life coaching as 'structured and process-driven relationship between a trained professional and an individual to achieve valuable and sustainable changes in life'. Life coaching as a tool of self-realization in this world is designed to assist persons who want to become No.1s at multiple arenas of life such as career, education, relationships, status, health and happiness. It is important to note that life coaching is sought after by professionals and white-collar employees who always seek to go beyond where they are actually placed in and acquire skills that they presently do not have. Significantly, life coaching does not see life in its parts but validates it as something qualitatively and quantitatively greater than its parts. The strength of life coaching lies in the fact that it is a holistic approach towards solving difficult problems in life. One cannot solve the problems s/he encounters at one particular field of life alone since living difficulties are interrelated and interdependent. Therefore, life coaching advocates a combination of techniques and solutions while encountering a particular hardship in life. To be precise, life coac hing is not merely solving one or another problem faced by a person but reforms and renovates a person and redefines his/her existence. One who undergoes such an experience will not be infested by the residues of the 'old' life but will be radiating with the energies of new life. One who gets life coaching could substantially alter his/her abilities, attitudes, values, emotions, and aspirations. Thus, a change from within would lead the person to emancipation and empowerment in the social setting s/he is happened
Tuesday, October 29, 2019
What is the best way to motivate employees to perform better Essay
What is the best way to motivate employees to perform better - Essay Example The other school of thought is that workers are motivated to perform better by internal motivating factors, such as achievement, enjoyment, a sense of competence, and personal loyalty to employees, which are factors that drive employees to work better or harder (intrinsic motivation) (Linder, 1998: p6). What all have in common, however, is that whether external or internal, rewards play an essential role in job satisfaction for the employee. When examining the internal factors that motivate employees, it has been found that the behaviour of employees is linked to attitudes and that the motivation for employees is not solely dependent on money (Lindner, 1998: p7). Internal factors of motivation consist of variables that are directly associated with the work of team members with such dimensions as challenging work environments, autonomy, and responsibility being closely linked with intrinsic motivation of employees. Indeed, interesting work has been identified as one of the most important internal factors of motivation, while having a sense of ownership concerning the work and output also acts as a major motivating factor. There is no clear agreement on where the responsibility for providing these set of motivating factors comes from, however. This is in line with Lindners (1998: p7) idea that these motivating factors differ within the organizational context that the employee works in. Under a ‘rewards’ system, it is clear that it is up to the management to provide motivation for employees. Longenecker (2011: p11) states that managers are responsible for motivating employees to use their talents and energy more willingly by encouraging ownership through maintenance of productive relationships and developing trust with individual employees. Lindner (1998: p) also identifies managers as being responsible for motivating their employees, noting that they should ensure that the work
Sunday, October 27, 2019
Swot And Marketing Analysis Of Philip Morris International Marketing Essay
Swot And Marketing Analysis Of Philip Morris International Marketing Essay SWOT analysis helps one to fine out the strengths, weaknesses, opportunities and threats of an organization or a company. Strength and weakness are internal to organization whereas opportunities and threats are external. Strength and weakness both related to internal environment of organizations but opportunities and threats are the outsiders and can be evaluated using PESTLE analysis. The followings are the Strengths, weaknesses, opportunities and threats of Philip Morris International. Strengths: Strong finance: The Company has a base of strong financial situation. According to its corporate website, its operating income in 2008 was $10,284 million, and its net earnings were 6,890. There was an increase as the same for the year 2007 was $8,894 and 6,038 respectively. Well established Brands: The Company produces famous brands like Marlboro, LM, Chesterfield, Philip Morris, Parliament and Virginia Slims. When the product establishes itself as a brand there is a less need of spending money on its promotion. Strong manpower and employees: The Company boasts of more than 75,000 employees throughout the globe from different culture and ethnicity. With the variety in their workforce there is a variety of ideas and concepts, which can be beneficial for the survival in the global environment. Strong Management team: the company under the chairmanship of Mr. Louis C. Camillieri has a strong and efficient management team. David Bernick , a senior Vice president and General counsel is university of Chicago, law graduate, Andrà © Calantzopoulos , chief operating officer ,Kevin Click, chief information officer and Doug Dean, research and development make the strong management team of the company. Leading Markets: The Company boasts of leading 11 markets out of the top 30 international markets. That is equivalent to occupying 33% of total top market shares. This is one of the strength of the company. These are the basic strengths of the company, a strong financial condition with plummeting profits, well established brand names of the product, skilled, well trained and diverse work force, a strong leading management team and the huge share in top international markets. Weaknesses: As far as a weakness of the company is concerned the litigations seem to be the only weakness. Government policy on the promotion and sale of tobacco related product stops the company from aggressive marketing and promotion of its products. It is the weakness of the company. Opportunity: Increasing tobacco market: Although anti tobacco activists are raising their voices against the production and distribution of tobacco, the tobacco market is still lucrative. It raises billions of pounds as revenue to the government as well as the producers. Advantage of globalization: Globalization offers the company an opportunity to take an advantage of cheap labour cost and cheap production cost offered by third world countries. Factories established in China, Nepal offers the company cheap production of its products hence huge profits. Mergers and collaborations: The Company tied its knot with Altria and it recently announced its partnership with fortune Tobacco Corporation. These kinds of mergers and collaboration offer the company an opportunity to expand its market share. Threats: Anti Tobacco activists: The Company has remained a most controversial company because anti tobacco activists have always criticized the tobacco company for being responsible to the death resulting from smoking. For example, activists in Philippines raised their voices against the merger of fortune Tobacco Corporation with Philip Morris. They have feared this merger can draw more smokers in Philippines. (http://www.abs-cbnnews.com/business/02/25/10/anti-tobacco-group-expects-intensified-marketing-philip-morris-deal 25/03/2010) Government legislations: The governments rule of banning the sales of tobacco related products to people below certain age limits and other rules related to smoking ban on public places can reduce the sales of tobacco. For example research in UK shows that number of smokers has reduced after smoking ban in public places and after the age limit for the sale of tobacco has been set. Public Awareness: People are more aware about the consequences of tobacco consumption because of the advertisement of anti tobacco activists. This has resulted in the reduction of sales in many markets. Strength and weaknesses are considered as internal factors whereas opportunities and threats are considered as External factors. Basically strengths and weaknesses of an organization are related to people, resources, innovation and ideas, marketing, operation and finance, whereas opportunities and threat are associated to the factors that organizations find hard to control sometimes. They are political, economic, social, technological, legal and environmental environment in which the organization exists. Now lets examine the external factors of Philip Morris International. Political environment: (http://www.executivehm.com/media/media-news/infographics/091117-EHM-Smoking.png, on 25th April 2010) The details above show that by the year 2009 there are 44 countries with active smoking ban. The data also shows that more than 1 billion people are protected by smoke free laws. These laws mean reduction of sales for the company. The company can either promote its products in these markets or have their sales restricted by severe laws. For example, they do not allow people below 18 to buy cigarettes in England and Wales. They have increased the age limit from 16 1st of October 2007. Politicians are always trying to seek public favour and by introducing laws like smoking ban and binge drinking ban or increasing tax for products like these they are trying to catch public sentiment. These kind of political activities are although favourable to general public, they are not at all favourable for a company like Philip Morris, whose revenues are based on the sales of its tobacco related products. Economical: There is not much difference to Philip Morris International due to the recession. Its profits did not plummet heavily even though the world was hit by economic downturn. Following table show its financial data. (in millions of dollars except per share data)      2009       2008 % Change Net revenues  $62,080       $63,640       (2.5)% Cost of sales      9,022           9,328        (3.3)  Excise taxes on products   37,045          37,935       (2.3) Gross profit   16,013         16,377       (2.2) Operating income   10,040         10,248       ( 2.0) Net earnings     6,342          6,890      (8.0) Basic earnings per share        3.25            3.32      (2.1) Diluted earnings per share Source: Philip Morris Webpage Sociological: Being criticized as a main contributor of smoking related deaths in the World, Philip Morris International has to do a lot to cope up with the sociological issues. Therefore their social responsibility activities are directed to these five areas of society, extreme poverty and hunger, environmental sustainability and living conditions in rural communities, domestic violence, and disaster relief. The company has spent billions of pounds for charity purpose to restore its tarnished image. Legal: Philip Morris had to suffer heavy loss due to several legal proceeding that it had to go through as people blamed of killing people. It has a history of being sued by people, distributors or companies. For example, 16 wholesalers filed legal action in a federal court in Tennessee claiming that Philip Morriss wholesale leaders program 2003 constitutes price discrimination and attempts to monopolize. (Financial Times of London, 8th July 2003.) To cope up with these kinds of legal issues, the company has its own legal department that deals with all the legal issues associated with the company. Environmental: Environment is a hot topic in present day world. The problem of thinning of ozone layer or the global warming draws the attention of each and every organization. Most of the organizations have designed their social responsibility programme associating themselves with the environmental issues. Philip Morris international too has done the same. They have set up performance goals for their energy use, water use, and waste water discharge, waste to be sent to landfills and waste to be recycled. The following table show their goals. Source: Philip Morris website can be accessed at http://www.pmusa.com/en/cms/Responsibility/Reducing/Reducing_Our_Environmental_Impact/default.aspx, on 26th March 2010. Competitive analysis using Porters 5 Forces model. Michael E. Porter of Harvard Business School developed a framework for the industry analysis and business strategy development. According to him an attractive industry has all the forces he has developed works for the overall profitability of the industry. The five forces of Porter are, Competitive rivalry Threat of substitute products Threat of new entrants Bargaining power of customers Bargaining power of suppliers In case of Philip Morris, he too has competitive rivalry. He occupies 15.6 percent of the total market share. The rest is occupied by his competitors. It is for the same reason, Philip Morris is focussed on promoting new products. To beat its competitors, it has developed a strong social responsibility plan along with modification of its products. The launch of smoke free cigarettes can be considered as a product of competitive rivalry. Threat of substitute products: Philip Morris is quite free from the threat of substitute products. It has always maintained the standard of its products and priced them reasonably. This has lessened the chances of acceptance for the substitute products that are available in the market. Threat of new entrants: Philip Morris is famous for its cigarettes. No one in the world is unaware about Marlboro. It is a reputed brand name in the field of tobacco industry. But a reputed brand gives Philip Morris an advantage. It is almost free from the threat of new entrants. The reason for this is, cigarette smokers have a strong loyalty to their brands. So, although there is a constant arrival of new products, they do not affect the market share of Philip Morris as it has endorsed its product with heavy promotions and established all of its products as a Brand. Bargaining power of the customer: Bargaining power of the customer does not seem to affect the company. The reason behind it is, the perceived value of Philip Morris products is quite high because they are heavily promoted through media. They have a brand image and are free from the bargaining power of the customer. Moreover most of the customers of tobacco trade are loyal to the products they are used to, and are ready to pay whatever amount of money they are asked to pay. So Bargaining power of the customers doesnt seem to affect the company. Bargaining Power of Suppliers: Bargaining power of supplier affects every company. Philip Morris too is affected by it as it follows strict rules concerned with Fair trade. Moreover it has launched special benefit package to its suppliers. It helps the children of its tobacco supplier with education facilities and other general benefits. It is doing this just to reduce the effects of bargaining power of its supplier. Conclusions: Whatever progress the company made is not just a coincidence. The company did not lose much of its profits even in the economic downturn. The reason behind this can be summarised as the proper knowledge of the strength and weaknesses of the company and summoning all pertaining questions related to its external environment. Its commitment to follow all legal requirements of the government, introducing chewable tobacco instead of smoking ones, commitment to environmental conservations and billions of pounds spent on charitable purposes are activities to keep the external environment favourable for the company. Task 2 Phillip Morris and global political change: Any multinational company that has operations throughout the world has to acclimatize themselves with the political scenario of the concerned country. Politics is stable only in few countries that too limited to the few developed countries. Moreover, as Philip Morris is concerned with producing tobacco related products, it is affected by any kind of political change that occurs in the country. By global political change we understand the political changes that occurred in the world. For example, the First World War, when ended in 1919 brought a lot of changes in the world. Similarly the end of Second World War too brought a lot of changes. One of the biggest changes was the start of cold war between the USA and the Soviet Union. The cold war divided the world into two halves, the capitalists and the socialists. Socialists denied the products of capitalist world to enter their countries, whereas the same thing applied to the capitalists world. Philip Morris thus could not expand his business to Russia and other socialist countries until the cold war was about to end. Philip Morris was able to penetrate the Russian market in 1977 when the socialist country was about to accept some change. Similarly, global terrorism has also affected the policy and decision making of the company as tobacco can be smuggled to developed countries where they have higher prices from the least developed or developing countries. It is said that terrorist have sometimes made tobacco as one of the source of funding to backup their activities. Philip Morris thus has set strict restrictions so as it products are not smuggled. Moreover its factories located in different part of the world restrict its products from being smuggled as they have their own identification number on them. Recession that recently occurred in the world can be the after-effects of the political upheavals in the world. Or economic activities and political change have interdependence. So recession in a way can be seen as an effect of wrong political decisions in terms of economic activities. Philip Morris dealt with it quite perfectly. According to statistics, ongoing earnings of Philip Morris rose by 11% as it coaxed solid grains in its food business and continued to find new market for its cigarette. (http://www.thestreet.com/storycomments/10007704/1/philip-morris-ignores-recession.html, on 27th March 2010) Question that present days political leaders are raising is the phenomenon of climate change. Global warming is a big problem and politicians throughout the world are trying to solve it out through joint efforts. All the countries are imposing their own kind of rules and regulations to reduce carbon emission and help in the reduction of global warming. Philip Morris can help in the reduction of carbon emission by investing in third world developing countries for example in the generation of electricity, or other sources of energy which can reduce deforestation and emission of carbon dioxide in the air.
Friday, October 25, 2019
Pride and Prejudice Essay -- English Literature
Pride and Prejudice 1. How do the narrative techniques of ‘showing’ and ‘telling’ work at this point in the novel? 2. How does this passage relate to the themes of the novel as a whole? The first part of the passage is dialogic, in that it contains only conversation between Lydia and Mrs Bennet. Jane Austen, through the use of narrative techniques, gives the reader an in-depth understanding of the story. One of these techniques is ‘showing’, which with the use of dialogue, allows us to gain an understanding of the characters. The characters of Lydia and Mrs Bennet, through the use of dialogue in this passage, are ‘shown’ to be excessively concerned with the expectations of the society in which they live, by being obsessed with the importance of marriage. Lydia is passionate in her manner; this is ‘shown’ to the reader when she talks of getting husbands for her sisters, â€Å"They must all go to Brighton. That is the place to get husbands†. She is pleased with herself and even boastful in her ability of having secured a husband before any of her sisters. She puts him on a pedestal, ‘shown’ by the narrator, with statements such as â€Å"Is he not a charming man?†and â€Å"I am sure my sisters must all envy me†. Austen also ‘shows’ how eager both Lydia and her mother are about securing husbands for her sisters, with the use of this narrative technique of ‘showing’, using phrases such as â€Å"there will be some balls, and I will take care to get good partners for them all†(Lydia) and â€Å"I should like it beyond anything!†(Mrs Bennet). This dialogic form of ‘showing’, allows us to view both characters during their conversation with each other, firmly establishing the characters and views of Mrs Bennet and Lydia. This ‘show... ...&P). Then of course there was Miss King, who had come into a fortune of ten thousand pounds; Wickham ‘had paid her not the smallest attention till her grandfather’s death made her mistress of this fortune’, (Page 121 P&P). His ‘distress of circumstances’ compelled him to seek a fortune, for which he would apparently go to any length to secure. We are encouraged by the use of dialogue and narrative to differentiate between Elizabeth’s personal and emotional integrity, Lydia’s immorality, and Mrs Bennet’s persistence in securing husbands for them all, no matter what it takes. Bibliography  · Pride and Prejudice by Jane Austen  · The Realist Novel – - Part One: Chapter One – The Genre Approach Chapter Two – Reading Pride and Prejudice - Part Two: Realism and Romance Realism and the novel form Jane Austen and the war of ideas
Thursday, October 24, 2019
CEO & CFO Perceptions About AIS Impact on Firm Essay
In the multifaceted, dynamic, corporate global milieu, imminent rifts continue to rattle the arenas of accounting/finance. The personal ambitions of CEO’s and CFO’s outweighed their responsibilities toward shareholders, employees, operations, civic/ethical duties, and the general financial system. CEO’s primarily focused on their own profitability, by increasing margins, meeting shareholder/market expectations, and expanding by any means necessary. Therefore, this lead to CFO’s and other members of top management on the front lines in manipulating margins to promote growth; thereby committing various levels of fraudulent activities, mainly to manipulate poor financial performance. The intertwining of ethical dilemmas and constant conflicts of interest endangered employees, shareholders, customers, and the general public. With the passing of Sarbanes-Oxley (SOX) in 2012, the act demanded, â€Å"that corporate management design and implement internal contro ls over the entire financial reporting process.†(Hall, 2013) In reference to CEO turnover and the appropriateness and effectiveness of a board, board of directors that are, â€Å"dominated by independent directors are more likely to remove a CEO based on poor performance than boards dominated by insiders.†(Dah, Frye, & Hurst 2013) â€Å"During the post-SOX, significant decline in the incidence of CEO turnovers for compliant firms.†(Dah, Frye, & Hurst 2013) Top management have adopted Accounting Information Systems, utilizing information technology and new understandings of physical controls in the workplace, in their effort to comply with SOX, the Committee of Sponsoring Organizations (COSO), and to maintain ethically conscious decisions. A company’s internal controls have been under scrupulous review and are continuously examined to a point where they are in full compliance with SOX. Most of the attention is attributed to two main provisions, organized by the Public Companies Accounting Oversight Board (PCAOB) that dire ctly relate to internal controls. Under section 404, the CEO and CFO of publicly traded companies must personally disclose and certify, quarterly and annually, an adoption of a detailed code of ethics, which includes an effective maintenance of an internal control system. This section also protects whistle-blowers. In addition, section 303 requires that the CEO and CFO must sign off on the financial statements to assure that the reports do not include any material misstatements or omissions. To further protect capital markets, corporate governance, employees, shareholders, the general public, and the auditing profession, the organization’s auditor’s assurance on management’s internal control and ethics policies is required. Top management teams understood the importance of adding IT prowess. Information Technology departments garnered more responsibility after the passing of SOX. Being held as critical importance to internal control functions in an organization, IT departments became responsible for creating, improving, executing, and modifying a series of controls, essential to reduce fraud. Additionally, IT is accountable for accumulating, processing, and storing financial data, which is utilized in financial statements, and creates audit trails for external auditors. A portion of the internal controls implemented in a business exist as IT controls, many of which are based in the computerized environment and usually pertain to financial data. Programs and processes are written and maintained by IT professionals. Fairly new and intuitive processes include automated systems. These programs have reshaped the environment of accounts reporting. They, â€Å"initiate, authorize, record, and report the effects of financial transactions.†(Hall, 2013) Automated accounting is associated with most Enterprise Resource Planning Systems (ERP). ERP systems, â€Å"facilitate the flow of information among all departments in an organization, and manage data sharing with outside systems, such as suppliers, business partners, clients and regulatory agencies.†(Chinn, 2011) Top management are attracted to apply automated systems in order to create an efficient and secure operating and accounting environment. Rudimentary features include the generation and distribution of invoices to customers, which usually follows with high possibility, that payment will be received at a timely manner. This electronic process of invoicing goes hand in hand with receiving wire transfers and, on the opposing cycle, purchases of materials; therefore, in either process, this allows the company to efficiently benefit from increasing cash/credit receipts and the ability to quickly obtain corporate and operating capital. These advanced computerized processes are able to initiate the transfer of a corporation’s assets and are able to automatically incur liabilities, in relation to their corresponding transactions without human interaction. However the many enticing advantages an automated system offers, there is no doubt the, â€Å"inextricable elements of the financial reporting process that SOX considers, and they must be controlled.†(Hall, 2013) Section 302 is in place to circumvent any inconsistencies of internal control in the workplace. Automation of the revenue cycle is typically used to reduce overhead costs, make better credit granting decisions, and better collect outstanding accounts receivable. Along with SOX provisions, the Committee of Sponsoring Organizations framework group IT system controls into two broad categories: Application Controls and General Controls. Subcategories of application controls include input controls, processing controls, and output controls. The General controls include controls over IT governance, infrastructure, network & operating system security, database access, application acquisitions & development, and program changes. â€Å"General controls are needed to support the environment in which application controls function, and both are needed to ensure accurate financial reporting, as well as reduce instances of fraudulent activity.†(Hall 2013) While utilizing the aforementioned controls will greatly reduce risk of financial fraud, there are inherent risks concerning information technology systems. Organizations integrated in a global frame, face an overarching environmental risk involving stability, which primarily concerns IT. The rapid production and ingenuity of increasing computing power, coupled with consistent gains in the growth of technology, have a direct result in an exponentially vibrant information technology atmosphere. This dynamic environment causes constant changes within internal controls in companies. Currently, â€Å"IT is considered one of the main risk factors in organizations, and both lack and excess of such investments can compromise the structure and the operations of the firm.†(Lunardi, Becker, Macada, & Dolci 2010) To keep up with the forward thinking global environment, as well as complying with constant legal and technical changes, IT innately becomes a focus with organizations. Management continues to adapt to new challenges that emerge, in relation to IT. Recently, â€Å"companies have been spending about 50% of all capital investment on IT.†(Lunardi, Becker, Macada, & Dolci 2010) Executives understand that it is impossible to significantly curb IT spending in such a technologically driven world; â€Å"however, they do not want to spend any more than the minimum necessary to deploy and run IT efficiently.†(Lunardi, Becker, Macada, & Dolci 2010) Outsourcing specific IT projects, as well as full ERP (Enterprise Resource Planning) systems, has become more normal throughout the past few years. Over 90% of firms that were sampled in various research projects engage in IT outsourcing. â€Å"Given the pervasiveness of IT outsourcing and the magnitude of IT spending in the economy†(Kobelsky & Robinson, 2010) top management can write-off costs, as well as secure system failures. In case of an unforeseen disturbance, firms can still operate ERP systems in their headquartered location, by creating an off-site ERP system. However, most IT outsourcing does not connect with cost reduction. Most managers, â€Å"indicate that though practitioner research emphasizes ITOS’s (IT outsourcing) cost-reduction benefits gained at the individual project level, outsourcing is associated with higher IT spending, presumably reflecting enhancement of capabilities.†(Kobelsky & Robinson, 2010) Organizations utilize ITOS, in addition to improving in-house IT fraud reduction projects. The continuation of outsourcing affects an increase in IT spending, than for localization. Consistent computing advancements and technological prowess have had positive outcomes in business processes, as well as added new computer support systems. There have been recent instances that cite, â€Å"fraud costs U.S. business more than $400 billion annually.†(Ravisankar, Ravi, Rao, & Bose, 2011) Data mining techniques have been implemented to remedy fraud and increase fraud detection by utilizing approaches that are more data-driven. These methods specifically depend on historical monetary data of both troubled and strong companies, coupled with their respective financial ratios. With the use of objective data mining, companies can solve financial statement inaccuracies and financial problems affecting the business, â€Å"by sifting through the records of fraudulent and healthy companies. Then, they discover knowledge which can be used to predict whether a company at hand will p erpetrate financial accounting fraud in future.†(Ravisankar, Ravi, Rao, & Bose, 2011) Artificial Intelligence systems bring forth a theoretical advantage. They understand when and when not to extract specific statistical facts on the input variables. Nevertheless, new computing power and automated systems could contain unexpected risks that could alter and affect reliability on financial statements. Because of newfound internal control spending, coupled with an increase of information technology in the workplace, companies have been progressively shifting their reporting systems from legacy platforms to a widespread client-server network. The integrated network utilizes new servers and product software, such as industry leaders, Oracle and SAP. Since the passing of SOX and introduction of COSO, Oracle and SAP have been duking it out for majority share of the market. The Systems, Applications, and Products in Data Processing (SAP) is a software ERP, which incorporates a streamline of business function applications. The system offers a, â€Å"real time management an d tracking of sales, productions, finance, accounting and human resources in an enterprise.†(Indika, 2011) Usually, IT systems operate separate processes. Traditionally, each process cycle operates in its own system. SAP differentiates itself by integrating into all business practices and operations. Updates are presented in real time, and pass along through different cycles and departments. The complexity of SAP, â€Å"runs on a fourth generation programming language called Advanced Business Application Programming (ABAP).†(Indika, 2011) Oracle maintains a similar application to the environment. ORDBMS (Oracle DMBS) has been primarily incorporated to be as versatile as SAP, specifically to assist large enterprise settings and manage data in the enterprise. Additionally, it can be useful on a personal level. Oracle DBMS is comprised of data and retrieved by applying SQL (Structured Query Language). The commands set entrance boundaries and protect the users’ data files. It, â€Å"can be embedded in other languages or could be executed directly as scripts.†(Indika, 2011) â€Å"During the initial SAP installation, Oracle can be defined as the database that is going to be used and then the SAP system will issue SQL commands that are compatible with the Oracle DBMS.†(Indika, 2011) There is not a drastic difference in installation time for Oracle or SAP. It also depends on whether the system is slowly introduced to the organization, or if it is launched all at one time. Top management will review an in depth cost and risk analysis, in determining which method of installation is most appropriate. (http://whatiserp.net/wp-content/uploads/2010/09/duration.png) The centralized legacy mainframe environment is tightly controlled and has made management complacent because of the simple fact that it works. The security structures and internal controls found on legacy systems have developed over the past four decades. Program and file access is easily traced and organized. The operating system of mainframe programs deliberately create audit trails and logs, which offer conveniences to external auditors, as well as making it more difficult to commit fraud. Legacy systems incorporate intricate scheduling software, which operate as safeguards. For example, plans are input into the system when appropriate authorization is in effect and in the precise sequence. Additionally, these systems adopt specific controls, which protect the integrity of financial report s and stages in the multiple cycles utilized by a business. Specifically, change controls pre-determinately restricts alterations to production applications. Automated responses appear and instruct employees to provide high level approvals and testing. The mainframe control environment has had time to evolve in decently stable times. However, upon the introduction of SOX and the realization that there were material internal control weaknesses in the workplace, standardization and integrated programming systems were presented to the business world. Over time, more and more companies are making the jump to cross-referencing and streamlined technologies. Because of a limited time lapse regarding the application of new ERP systems, there has not been reliable risk analyses on internal control processing, as there are with legacy systems. Unfortunately, there is an insurmountable need for risk awareness, when incorporating new systems in this day & age. Over-crowded client-server networks can become a problem to configure and monitor appropriately . To cushion the negative associations of risk, physical and internal controls are put into place to monitor systems. Companies may want to place security cameras and physical guards of the servers and related systems during off-hours. When deciding to implement new technology in a firm, or replacing an entire system with more up-to-date specifications, control risks need to be assessed. New risks and internal control weaknesses are often created faster than they can be discovered and regulated. Integrity and security of a firm’s data should be at a top priority. Threats, like viruses and worms are to be kept at bay, with various walls and algorithms. Emerging technologies like Extensible Business Reporting Language (XBRL), Radio Frequency Identification (RFID) tags, the continuation of reporting, subject to repeated external audits & compliance with SOX and COSO, and object-oriented databases remedy discrepancies should protect systems. A firm’s internal audit department are also available in coordinating and evaluating the IT control environment, and should be able to verbally instruct and announce employee centric workshops to increase employee control awareness. Because of issues concerning independence and segregation of duties, the internal audit department will not be able to design code and functionality specifications in the internal control mainframe. However, they are the cheapest and central consultants on how the controls affect operations, and if the specific controls work in detecting fraud. Top management considers the internal audit department an under-utilized resource in perfecting internal controls and information technology controls. Constant balance between CEO’s and CFO’s must be maintained in order to synergize business operations, in accordance with GAAP, SOX, and COSO. Information technology, â€Å"serves as a facilitator, catalyst, motivator, or even an enabler for the convergence of management accounting and financial accounting.†(Taipaleenmaki & Ikaheimo 2012) In order for the SOX initiative to be effective, the information technology function must be in conjuncture with aiding the control environment of a business. Financial reporting has changed over the years, to favor IT processes, which are almost entirely fundamental to the financial reporting practice. Additionally, with the passing of SOX, new responsibilities are imposed upon IT functions, which would usually be ignored, because IT is not necessarily responsible for monitoring internal controls. IT & finance professionals, as well as top management, have had to adopt and learn a whole new set of functions, reporting, and mon itoring. The information technology culture is of dire importance to adhering to new standards and progresses the business environment to innovative and more secure highs. A functioning IT department is crucial for the CEO & CFO to document financial and internal controls. Value is a very subjective term, especially in reference to capital expenditures. Different opinions and different needs will influence how much a firm spends on new technology to facilitate and cooperate with changing standards. Usually, implementing a new system in a business have positive and financial benefits, in the long run. However, â€Å"a new system will often find resistance at the individual level because the users do not perceive any value to them from it.†(Barua, Brooks, Gillon, Hodgkinson, & Kohli, 2010) Positives could include additional time to perform other tasks, and create more efficiency around the organization. However, an overuse of technology could threaten employee’s jobs, as systems become more automated. Individual perception on new installations of systems might be shaky at first, but in the end, whatever is needed to comply with changing standards, is exactly what leaders of organizations will flock toward. CEOs and CFOs understand that integrating proper Accounting Information Systems is integral to society and the business world. Additionally, as per Thomas Piketty, who maintains in his freshly published voluminous, â€Å"Capital in the Twenty-First Century†, CEOs, CFOs, and Super Managers are running massive conglomerates effectively because of IT and AIS. Therefore, IT has given them powers to set exorbitant compensation packages for themselves, by super-humanly maximizing their own productivity and performance. In conjunction, if fraud can be avoided in the bargain, they are awarded super hero status and remuneration, which may summarize their perceptions about AIS , IT, and the dual benefits of SOX and COSO. Bibliography Barua, A., Brooks, L., Gillon, K., Hodgkinson, R., & Kohli, R. (2010). Creating, Capturing andMeasuring Value From IT Investments: Could We Do Better? . Communications of theAssociation for Information Systems, 27, 13-26. Chinn, D. (2011, March 11). What Is Enterprise Resource Planning Systems?. eHow. RetrievedApril 15, 2014, from: http://www.ehow.com/info_8050594_enterpriseresourceplanningsystems.html#ixzz2zS3rm7n5 Dah, M. A., Frye, M. B., & Hurst, M. (2014). Board Changes and CEO Turnover: TheUnanticipated Effects of the Sarbanes-Oxley Act. Journal of Banking & Finance, 41, 97108. Difference Between. (Indika). Difference Between RSS. Retrieved May 5, 2014, fromhttp://www.differencebetween.com/difference-between-sap-and-vs-oracle/ Hall, J. A. (2013). Accounting Information Systems (8th ed.). Cincinnati, Ohio: South-WesternCollege Pub.. Print. Kobelsky, K. W., & Robinson, M. A. (2010). The impact of outsourcing on informationtechnology spending. International Journal of Accounting Information Systems, 11(2),105-119. Lunardi, G. L., Becker, J. L., Macada, A. C., & Dolci, P. C. (2010). The impact of adopting ITgovernance on financial performance: An empirical analysis among Brazilian firms .Journal of Banking & Finance, 15, 66-81. Ravisankar, P., Ravi, V., Rao, G. R., & Bose, I. (2011). Detection of financial statement fraudand feature selection using data mining techniques. Decision Support Systems, 50(2),491-500. Taipaleenmà ¤ki, J., & Ikà ¤heimo, S. (2013). On the convergence of management accounting andfinancial accounting – the role of information technology in accounting change.International Journal of Accounting Information Systems, 14(4), 321-348. Chart Picture: http://whatiserp.net/wp-content/uploads/2010/09/duration.png
Wednesday, October 23, 2019
Globalization of hospitality industry Essay
A service is an activity which has some element of intangibility associated with it, which involves some interaction with customer. The service is unique component in hospitality which is a universal component with the distinct requirements even in New York or New Delhi. The advent of globalization has created new destinations and opportunities to explore. The new business opportunities like outsourcing business to new regions will provide ample opportunities to the services. Every destination has its won distinct characteristics to deal with. The acceptance of your service depends upon the way the organisation responds in creating the native environment. The important aspects that a guest perceives in hospitality industry are the Ambience, the quality of service, the features on offer. An organisation to internationalize needs a series of factors to look into The custom made services, Location preference, the entry norms and the modes of entry. The more the people move to exploit the business opportunities world wide the more will be the need for services. The hotels and the others related leisure services are essentials for these businessmen moving far. The MNC’s has to know the regions where there is greater movement of population and where there is need to establish the hotel services in view of the international client. The establishment importantly should keep an eye on the local requirements without hurting the native custom. The organizations have to touch a right balance with international quality services with local touch to magnify the uniqueness of the service offered. The new regions will enhance the business proportions, increase the profitability, ease the competitive pressure on the group. The entry norms leverage the hotels group to enter a new destination with ease. The common entry norms are acquisition, jointventures, leasing, franchising and management contracts. The modes enable to retain the clientele base of the target company, helps in understanding the consumer base quickly. The above strategies decrease the settling time as it is more like taking forward the same brand with a new look. Thus the hotel groups should concentrate more on developing strong local brand with international standard. The more you adopt to the market the more will be the returns. Reference: Li Wei, Integration and globalization of hotel industry, viewed on Jan 26, 2007 available at http://fld. dlut. edu. cn/TeachAndReasch/TR_disp. asp? id=220
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