Business Report of Lenovo Essay Example for Free

Business Report of Lenovo Essay Introduction Lenovo was found in 1984 in Beijing and it is the world’s second-largest PC vendor. According to the last official statistic, Lenovo consolidated turnover of 146.6 billion Yuan and Lenovo employs nearly 40,000 people. Lenovo is a well-known national brand in China and Lenovo is serving customers in more than 160 countries. In order to expand overseas business and access to world-class brand, Lenovo carried out an acquisition of the former IBM Personal Computing Division in 2005. IBM was founded in 1911 in the United States and it is the largest information technology and business solutions company in the world, currently has more than 30 million employees in the world, with operations in over 160 countries and regions. The problems experienced by Lenovo concerns the construction of cross-cultural teams. Most of the merger and acquisition fail in the post-merger cultural integration. Lenovo set up work teams for designing the future of IBM and developing the new view after acquisition. The results had been shown it uneasy and can lead to the failure of the Lenovo’s acquisition strategy. At the beginning of the acquisition, cultural differences had not been enough anticipated in the acquisition process. And Lenovo wants to remedy the problem as soon as possible to make IBM acquisition profitable in the next strategy. The report part of the business plan Summary This report is intended to identify, describe and propose some solutions to Lenovo to solve the problems about teams and groups in the acquisition of the IBM. This report will describe problems associated with team building, provides some possible solutions and evaluates each of these. And, this report will describe the impact of cultural differences on the establishment of work groups. Actually, Lenovo had taken some measures, but it with little success. According to the current state of Lenovo, this report will give some suggestions and solutions to overcome or avoid the conflict caused by cultural differences and set up effective cross-cultural teams. Especially, these solutions are based on literature on the issue. It concludes that it is necessary for the company to establish effective and appropriate measures to eliminate the barriers in cross-cultural teams, as absence of this may threaten the company’s long-term development. To overcome the problem, Lenovo should take the follow action for IBM survival: * Obtain the core values between Chinese employees and American employees through an internal survey. * Design an international training program for all the employees and especially for managers. * Incorporate both corporate cultures of Lenovo and IBM to create a new corporate culture. * Every cross-culture team should organise monthly meeting or weekly meeting to evaluate the progress of communications and work. * Organise some internally non-working activities to create more opportunities for the communication among employees with different cultural context. * Set up the special teams to deal with the problem caused by cultural difference in every cross-cultural team. Introduction This section of business plan will introduce the problems caused by cultural differences in cross-cultural teams and give some suggestions to overcome the problems. In the acquisition of IBM, Lenovo accepted more than 10,000 employees and it also means that Lenovo accepted a very different culture. Lenovo is not only facing the differences between western and eastern culture, but also Lenovo facing the problems of how to integrate the teams with different organisationally cultural context. In this report, the recommendations to overcome the problems in cross-cultural teams and groups are based on the literature on team building and cross-cultural team management. Body At the beginning of the acquisition of IBM, Lenovo had taken some measures. For example, in order to both sides can communicate better, the new Lenovo use the international common language English as the official language of the company. But cultural integration is a long-term process, which requires companies to devote their time and patience and the communication, compromise between both of high level, and staff in the acquisition. It must not be too hasty. Base on the fact of Lenovo, there are three aspects should be noticed and improved. Firstly, IBM has a long history and IBM has very high brand awareness. In addition to the brand, employees can get the respect for personal values ​​and a comfortable working environment can be provided for employees by the human resources services and the improvement of the system. In contrast, Lenovo has a big gap no matter the position in IT industry and the strength of themselves. If some team members uphold the cultural superiority or group superiority that their own cultural value system better than those members from other cultures or groups, their behavior maybe resulting in the failure of team building because they will be possible to take hate and boycott from other members, even lead to conflict. Because the conflicts caused by cultural differences between team members and individual differences under thus influence, analysis and identification of cultural differences is necessary. Secondly, communication is the process of exchange and transmission of information among people or groups. Because of the multi-cultural background, language and non-language barrier, people lack of understanding of each others political, economic, legal, social and cultural environment, and the understanding of the customs, values, etc. are different. They are often based on their own perspective to make an analysis and judgment on each others information, and thus the misunderstanding and conflict are often obtained. Because of these, design a multi-cultural training and hold a monthly meeting or weekly meeting is necessary. Thirdly, a company has an acquisition of another company means an integration of two different corporate cultures. When the employees of a cross-cultural group are conscious of the different of personal cultural awareness with others, it will be cause the group lost their purpose. Based on the possibility, establish a common business concept and corporate culture is a good solution to this problem. Establish a new joint management concept and a strong culture based on the environmental requirements and the principle of the companys strategic development, so that reducing cultural conflict and that each employee’s thinking and behavior can combine with the companys operations and purpose. Adopting these recommendations and the actions in summary can make internal and external combination of the teams more closely, establish a good reputation in the international market and enhance multinational cultural adaptability. This is the ultimate goal of why Lenovo needs solve the cross-cultural issues of teams and group in the acquisition of IBM. (1077 words) Section 2 1. What the literature says â€Å"teams and groups† The importance of teams and groups for an organisation In modern society, one person’s power, information and resources are limited. Most time people need cooperate with others no matter working or others as Handy (1993) said â€Å"On average, managers spend 50% of their working day in one sort of group or other. Senior managers can spend 80%†. Although there is no clear and single definition of a teams and groups, there is a basic limited definition by Bennett (1991) â€Å"a collection of two or more people who possess a common purpose†. The formation of an organisation groups in order to achieve the purpose of work more efficiently. An organisation can produce some different kinds of groups, for example: formal and informal, LOCO, HICO, teams, etc. An organisation needs to be aware of their differences and use them as efficiently as possible. There are a lot satisfying reasons why an organisation should create work groups. For example, organising effective groups can have some uses for the distribution of work, the management and control of work, problem-solving and decision-making, information processing, information and idea collection, testing and ratifying decisions, co-ordination and liaison, increased commitment and involvement, negotiation and conflict resolution, inquest or inquiry into the past. (Handy, 1993) No matter what kind of a group there is a bottom line is â€Å"A strong group is †¦ usually more powerful than a strong individual and can have a considerable effect on organizational policy and practice.†(Thomson, 2002) This literature review will pay attention on teams mainly. In a team, everyone plays different role and they have specific function and they working with an important principle â€Å"voluntarily co-ordinate their work in order to achieve group objectives†(Bennett, 1991). Building a team People hope they can define their identity through their membership of certain groups like people belong to local political and pressure groups, for example, because they experience a shared set of values with the other people in the group which reinforces their own values. But, according to Thomson (1997), one reason why people belong to group is â€Å"social needs†. As Thomson Mabey said â€Å"some †¦ groups will be family or friendship groups, which are formed to meet a diverse range of needs such as affection, security, support, belonging or identity. Some may be committees, where members usually represent different interest groups who come together to discuss their differing perspectives on matters of interest†, people should build a team for the work that is highly complex problems, need for consensus decisions and there is uncertainty when a broad range of competences are required. A company is a big group of a lot of people working together, so the managers are responsible to build effective teams or workgroups. After collecting more individual talents, building a team has the ability to use the talents on a united effort and success is very important (Woodcock, 1979). Consequently, the managers should know how to effectively build a team. In general, the managers must have the knowledge about the five development stages (forming, storming, norming, performing and mourning) in a team or workgroup and they should have an appropriate leading method for themselves (Thomson Mabey, 1994). Of course, this is not enough for managing a team. The managers need realise everyone’s advantages and dis advantages in the team and especially the differences of their culture context. Teams and cross-cultural context In modern society, business environment developed quickly international. Different cultural members mixed in a team so that the team has powerful ability to solve complex problem. But, individuals from different cultural context must show a different behavior and values in the team. This is because the peoples cognition, thinking, needs, values, code of conduct, customs, etc. are formed in the years of life, work and education. The individual differences caused by cultural differences led to the conflict of the team in the cross-cultural context (Sun, 2012). So, how to make a cross-cultural team working effective is the main responsibility of managers. In a cross-cultural team, there is an important factor is a clear understanding of every one culture and values, and a process of acculturation. The acculturation process is a mutual exchange of cultural pattern (Olie, 1995). Related to the case of Lenovo, the best recommendation for acculturation is integration. It different with one culture dominate the others, integration is a process of acculturation (Nahavandi Malekzadeh, 1995). Interest for Lenovo In the case of Lenovo, Chinese and American must accept each other for working effectively. But the main problem in the cross-cultural groups is communication. The managers of Lenovo must make everyone in the group understands and adapt to the different culture with some training or actions. And more important is design a politic cooperatively cultural pattern. 2. What does the literature say about different cultural contexts and its influence on teams and groups What are culture and its importance According to Hofstede(2003), culture is â€Å"the collective programming of the mind which distinguishes the members of one group or category of people from another†. It related to a group. With a large-scale research study of IBM branches around the world by Geert Hofstede, the culture is considered a compositive project. Geert Hofstede creates a new way to describe culture through five variables: power distance, individualism, masculinity/femininity, uncertainty avoidance and long-term orientation. All theories have limitations. Although this method created by Geert Hofstede is not absolutely right, it does not affect the theory of Hofstede can analyse one country’s culture as a valuable tool. Contract with the case of Lenovo, the most important effect by culture is â€Å"Currently only 25% of international mergers and acquisitions in Europe are successful. The price of failure is high. Cultural misunderstanding lead to loss of face, loss of money and, in extreme case, even loss of life† (Gibson cited in Naysmith, 2006). If managers do not pay enough attention on the culture, it possibly can cause the failure of the acquisition of IBM. Organisational culture Culture is not only exists in the countries, but also culture exists in any organisation constituted by people. Based on Handy (1993) said, â€Å"The role organisation will succeed as long as it can operate in a stable environment†. A steady cultural environment is necessary for an organization get success. At the same time, organisational culture is manageable and it can affects the approach of management, the accepted goals and customer of the society determine and influence that what managers strive for and the rule observed by managers (Stewart cited in Naysmith, 2006). So, the organisation also based on the cultural context of the country. The organisational culture can also measured by the five variables created by Hofstede.(Geert Hofstede, 2001) Influence of culture on â€Å"teams and groups† If a company formed by people comes from different cultural country, this company will own a special energy. It is a competitive advantage from a cross-cultural context. But, exerting the competitive advantage effectively is the most important challenge for the cross-cultural group. Because in a cross-cultural group the members have different working purpose and processes will be revealed. (Maznevski Peterson, 1997) The effectiveness of work group will be decreased by the ethnocentrism, stereotypes, different expectations and difference in values. And these negative emotions will produce the anxiety and misunderstanding in-group, even diminishing the workers dedication to the company and destroying the group ardor. Interenst for Lenovo Cross-border mergers and acquisitions not only include the corporate cultural differences of both sides, but also include the cultural differences between the countries of the two sides. Organise some activities or cultural training to make more opportunities for every understanding different culture can eliminate the negative affects effectively. 3. Conclusion This literature review introduces some keys briefly for understanding teams and groups in a cross-cultural context. Firstly, teams and groups are particular important for an organisation. But there are some problems should be solved in a cross-cultural group. The managers is not only should know everyone’s skill and talent, but also they should know their difference caused by different cultural context. And some actions can make a good communication between each other for understanding the differences are necessary. Secondly, based on enough knowledge to understand the importance of culture, the managers should eliminate the negative affects of cross-cultural context through some activities or training. And the most important is creating an appropriate organisational culture. It can give the cross-cultural group an approach, so the cross-cultural group can exerts the competitive advantages completely. Bibliography Bennett, R., (1991), Organisational Behavior, London: ME/Pitman, pp.145, 154. Geert Hofstede, (2001), Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations, Second Edition, Thousand Oaks CA: Sage Publications Geert Hofstede, (2003), Cultures and Organisations, Intercultural Cooperation and Its Importance for Survival, Soft ware of the Mind, London: Profile Books Ltd. Handy, C, (1993), Understanding Organisations (4th ed.), London: Penguin, pp.150-2. Maznevski, M. Peterson, M.F., (1997), Societal Values, Social Interpretation, and Multinational Teams. In C. Skromme Granrose S. Oskamp (Eds.), Cross-Cultural Work Groups, pp. 61-89, London: Sage Publications Ltd. Nahavandi, A. Malekzadeh, A.R., (1995), Acculturation in mergers and acquisitions, In Jackson (Ed.), Cross-Cultural Management, pp. 328-341, Oxford: Butterworth-Heinemann Ltd. Olie, R., (1995), Culture and integration problem in international mergers and acquisitions, In T. Jackson (Ed.), Cross-Cultural Management, pp. 308-325, Oxford: Butterworth-Heinemann Ltd. Sun Ziwen, (2012, April 13), Case analysis of the cultural integration in cross-border mergers and acquisitions of Chinese enterprises, Peoples Forum, 356(2), 7. Thomson, R., (2002), Managing people (3rd ed.), Oxford: Butterworth-Heinemann, pp.92, 95. Thomson, R. Mabey, C., (1994), Developing Human Resources, Oxford: Butterworth-Heinemann in association with the Institute of Management, pp.177. Woodcock, M., (1979), Team Development Manual, Aldershot: Gower Press Teakfield Limited, pp.177.

Fair Trade Coffee Starbucks Marketing Essay

Fair Trade Coffee Starbucks Marketing Essay Fair trade is a structured social movement that applies marketing approach whose goals and objectives is to help producers and farmers in developing countries get better trading deals for their produce and thus produce sustainably. The social movement campaigns for better pay, higher prices, better social and environment standards to the farmers in developing countries (Valkila Nygren, 2010, p. 321; Weber, 2007, p. 112). The main target is mainly on exports that are delivered to developed countries from developing countries where minerals, farm produce are targeted. Farm produce such as; cotton, fresh fruit, cocoa, coffee, chocolate, sugar, wine, honey, bananas, tea, and flowers where producers benefit from free trade movements (Davis, 2008, p. 22). Fair trade ensures responsible coffee production and trading in terms of product quality, economic accountability, social responsibility, and environmental leadership. Fair Trade Certified coffee has ensured that small scale farmers remain empowered while they are organized in cooperatives to invest in and develop their farms and society, look after the environment and equip themselves with business proficiency that will help them compete in a global setting (Valkila, Nygren, 2010, p. 324; Davis, 2008, p. 23). Thesis Statement In view of the fact that Starbucks were seen as exploitative due to their unfair handling of small scale producers of coffee in third world countries e.g. Ethiopia; this paper tackles fair trade movement and mainly focuses on fair trade coffee practices with respect to Starbucks Company. Fair trade Governance systems related to global production and trade have come under intense criticism from broad coalition of social movements which have been branded as distorted and lack justice (McDonald, 2007, p. 794; Fridell, 2009, p. 87). The social movements have tried to mobilize societies to end exploitation by firms that buy the products from farmers and campaigned for poverty eradication procedures and social justice. The coffee industry has been most hit where farmer and workers in the farms continue to survive and work in terribly poor conditions and adverse poverty levels. The social movements through Fair Trade Systems have enabled the stakeholders especially the companies that trade in coffee to be accountable to the society that produces the coffee. As cited in FINE 2001 by Weber, 2007 p.109 Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to and securing the rights of, marginalized producers and workers- especially in the South. This means that any company willing to trade globally must act responsibly and ensure sustainable development in the developing countries and see to it that the lives and conditions of living of the marginalized in the trading society are improved. An example of coffee injustice is the Nicaraguan case where coffee is a major export accounting of 30% of the total export in income; on the other hand poverty levels among the workers and farmers remain very high (Valkila, Nygren, 2010, p. 324; Weber, 2007, p. 110). The farmers are faced with low, undeserved, unstable prices coupled with inadequate infrastructure, rampant insecurity, poor housing, and sanitation, poor health services access, poor social structure, and poor educational provisions (Weber, 2007, p. 110; McDonald, 2007, p. 793; Reed, 2002, p.226). Even those workers on large scale farms complain mainly on harassment and poor pay from their employers. In the developed countries where the coffee is traded the persons enjoy huge profits from the coffee that has been bought at low prices in developing countries. Minimizing this disparity is the role of Fair Trade systems. They tend to instill discipline and justice in the global coffee market especially for small scale farmers that are in democratic cooperatives. The bargain for fair price for the producer and better living conditions and other social benefits are pushed for by the free trade organizations. Free Trade coffee is certified by the Fair-trade Labeling Organizations international (FLO). Weber, 2007, p. 112 in his article Fair Trade Coffee Enthusiasts Should Confront Reality indicates that free trade organizations linked to coffee have fairly achieved improved living standards for farmers but the system remain unsuccessful in delinking promotional material and the real situation on the ground, excessive supply and marginalization of the producers and groups that are economically disadvantaged. Starbucks and CAFÉ The success of Starbucks which is a global coffeehouse chain with its headquarters in Seattle Washington can be linked to the trade of coffee from developing countries. With over 12440 stores in 37 countries and 145,000 baristas (employees) the company boasts of $7.8 billion net revenue and a yearly profit of $564 million in 2006 (Davis, 2008, p. 21; Valkila, Nygren, 2010, p. 325). It has remained at sustainable growth and can boast of serving 40 million customers globally. Since its inception in 1971 it has expanded year in year out with many joints being set up to serve high quality coffee (Davis, 2008, p. 21; Fridell, 2009, p. 86; Starbucks, 2004 para.3). Its success can be traced with the collapse of the International Coffee Agreement in 1989 where prices started declining and Starbucks maximized on the low prices with its growth at 5% annually since 1991 (Anonymous, 2003, p.22; Davis, 2008, p. 23; Fridell, 2009, p. 87).Despite this tremendous growth of the company workers in the company and farmers in the producing countries continued their outcry of poor prices and poor living conditions (McDonald, 2007, p. 794; Fridell, 2009, p. 88). The middlemen have also participated in fleecing the farmers who buy the coffee at reduced prices and resell at higher prices. Starbucks on its part never did anything at the time. Public outcry from the farmers in producing countries and workers was not enough to reverse the situation at the time. The establishment of the Coffee and Farmer Equity (CAFE) standards also seemed to be unfavorable to farmers in that only an approximate 30% met the Starbucks standards of the CAFÉ guidelines (Starbucks, 2004 para.4; Reed, 2002, p.224). This meant that the benefits trickled down to other sources other than those producing the coffee. In addition the standards were vague to implement and just acted as a blinding of the farmers. The CAFÉ has sets of product quality, economic accountability, social responsibility, and environmental leadership for farmers to qualify. For the product quality they must meet the green preparation and cup quality (Starbucks, 2004 para.6; Fridell, 2009, p. 89). For economic accountability they must demonstrate financial transparency, equity of financial rewards, and be financially viable. Social responsibility is graded in wages and benefits, freedom of association, working hours, child labor discrimination and forced labor avoidance, access to housing, education, health services, and work safe practices. The environmental guidelines include; protecting water and soil resources, biodiversity conservation, managing the environment and monitoring, waste management, effective energy use, and water conservation (Starbucks, 2004 para.7; McDonald, 2007, p. 795). Other companies such as; Nestle, Procter Gamble, Kraft, and Sarah Lee also contributed to the misery of farmers by buying coffee way below the production costs (Davis, 2008, p. 21; Reed, 2002, p.221). Farmers remained exploited without fair trade that will ensure the fair treatment from the companies dealing with coffee and other farm produce. Fair trade has given hopes to farmers and producers and societies in the producing regions of mutual benefits for their efforts to produce any cash crop (Reed, 2002, p.224; Fridell, 2009, p. 85). Starbucks and the CSR strategy According to Fridell, 2009 p. 87 in the article The Co-Operative and the Corporation: Competing Visions of the Future of Fair Trade major coffee companies have over the past few years started dealing in fair trade coffee that is integrated with their programs of Cooperate Social Responsibilities (CSR). The standards given by the FLO to the south have also not been applied in the north and regulations such as (a guaranteed price and social premiums, advanced partial payments, licensing fees and long-term commitments have been at times evaded in the north. Fair trade is mission driven while CSR is money driven; this explains the need for fair trade since it will help achieve society needs while still aiming at better trading terms. While CSR represents a shareholders move toward ethical business fair trade yearns for a stakeholders approach that benefits all stakeholders. CSR are seen as personal driven objectives that pursue business goals which is referred to as self regulatory while free trade aims at a integrated approach that is highly domineering to improve the well being of the stakeholders. During the start of the millennium only 1-2% of Starbucks coffee was from free trade, the company adjusted to a passive way of supporting free trade then but has currently changed. Starbucks has become successful in the coffee industry buying 1% of the worlds green beans and approximate 10% specialty green market coffee beans. Its acceptance to free trade was necessitated by immense pressure by the US/ Guatemalan Labor Education Project (US/LEAP) for the companies to put into operation a code of conduct for the Southern coffee producers (Fridell, 2009, p. 81; Valkila, Nygren, 2010, p. 326). The company was still passive to accent to the agreement but after a sequence of protest globally they agreed. This commitment would not be compared to its huge sales that it was enjoying at this time and thus selling FLO certified products would ensure the benefits went back to peasant farmers. But Starbucks was reluctant to such moves and as Fridell, 2009, p. 82 quotes When it comes to support for fair trade, Starbucks commitment is limited to the minimum needed to keep public criticism at bay. Starbucks management saw more importance in concentrating on its CSR rather than engaging in free trade; but the CSR was mainly done to improve its brand image as an alternative of benefiting society (McDonald, 2007, p. 797; Davis, 2008, p. 27). They have developed an atmosphere of a trendy cafà © where customers can hang around and read thus portraying a local community. This atmosphere has necessitated concentration to interior design, customer service, and public relations that make the customers feel at home at the expense of producers, workers and farmers (Fridell, 2009, p. 82; Valkila, Nygren, 2010, p. 327). The most awful bit is that this image has been widely accepted world over. Further it has invested in CSR that tend to neutralize negative publicity from neo-liberal reforms. The CSR build in on the self regulatory approaches that are effective in sustaining the brand image prominence in the market and building of the shareholders and stakeholders trust. The company aims to employ cheap labor such as prisoners who require low wages and fewer benefits and are dispensable at any time with minimal consequences while they hide in CSR (Fridell, 2009, p. 84; McDonald, 2007, p. 797). Comparing the wages of the Starbucks employees, services workers are paid very minimal wages while the management is among the highly paid in North America. Starbucks has the lowest employee turnover rate in the fast food industry which is a strategy embedded in the CSR and the brand image (Fridell, 2009, p. 85). Despite better benefits such as; basic medical, dental, and vision coverage, short-term counseling and basic mental health and dependency treatment than other service industries Starbuck employees are remunerated with low wages thus many opt out in less than one year. Other benefits the employees enjoy include a free pound of coffee per week free beverages while working, and financial assistance that is based on payroll deductions for emergencies which are all gimmicks of boosting a corporate image that ensure profitability at the expense of the workers. The 2000 case between Canadian Auto Workers, Local 3000 (CAW 3000) and Starbucks bring into the spotlight the commitment of the company to its employees since CAW 3000 tried to negotiated for a third phase of increased wages for workers while Starbucks still maintains it is an anti-union employer; the commitment to fair trade proves otherwise in view of the above fact (Davis, 2008, p. 25). Starbucks in 2002 imported 1.8 million pounds shade grown coffee that was certified by Conservation International (CI); 1.7 million pounds certified coffee and 1.1 million pounds of fair trade coffee this was a very small proportion i.e. 1 to 2% of fair trade (Fridell, 2009, p. 87; Davis, 2008, p. 24). Working with CI is a major cover up to fair trade since CI is mainly involved in conservation of trees in areas where they are extinct but they have no clear social role. Also CI cannot be ethically cleared since it works with other major environment destroyers globally such as; McDonalds, Chiquita, Mobil Foundation and Exxon; therefore it can be not be trusted as a corporate identity of fair trade (Davis, 2008, p. 27). It is clear that Starbucks have relied on the CSR for a successful implementation of its profits strategies. This method may however be risky for the sustained growth of the business (Fridell, 2009, p. 91; Davis, 2008, p. 28). Disadvantages and advantages Despite fair trade call there are issues that revolve around it that must be ironed out. Firstly include identifying the culprits of the process. Fair trade organizations may be blaming organizations who only work on profits as exploiting the society but the companies may be profiting through legal means. They may then blame corporations of breaking free trade agreements while they have used stretched resources to survive (Topik, 2010, p. 146; Fridell, 2009, p. 89). The participation of successful firms in transforming society may work but major issues such as a large gap divide may shift the advantage to the producer, therefore the producers expect more from firms which is unfair. Also a major concern on what signifies a living wage is a problem as firms make sales to improve the living income of the producers; in this case fair trade cannot guarantee anything to farmers (Weber, 2007, p. 109; Davis, 2008, p. 27). Fair trade is pegged on cooperatives of producers and thus the individual producer may be left out; the cooperatives mediate the prices and thus the producers only get what is quoted by the contracts. The prices quoted must meet or surpass fair trade limits with a deduction of the expenses incurred by the organization. The organization eliminates intermediaries and thus costs of sorting, processing and exporting may surpass the expected prices before payments to farmers. These costs may be so high to make fair trade markets be unreasonable (Weber, 2007, p. 111; Fridell, 2009, p. 88). Hired laborers are also believed to receive minimal wages somehow, since the fair trade agreements dont apply to those hired. The fair trade has also adequacies of trying to control the markets by establishing minimum prices; this however doesnt work since most fair trade certified produces trade only a fraction of their produce. This translates that farmers are never induced to grow more coffee in a bid to earn more from the dominant prices. This creates an imbalance between supply and demand and as Weber, 2007, p. 112 reports it has go on for more than 10 years. This was so grave that in 2002 FLO had to temporarily close out new members. Excess certified coffee in the market does not lead to dumping but rather increases barriers to entry and consequently increased producer competition for the limited contracts. And this can lead to exclusion of marginalized farmers that are purportedly supported by fair trade (Weber, 2007, p. 112; Davis, 2008, p. 26). With increased quality standards in the market FLO resulted to charging more to producer organizations this increases expenses and creates barriers to the market; this locks out young organizations that have no funds. Also they need extra funds to pay for inspections and other expenses thus the fair trade objective is not achieved since marginalized farmers are locked out (Weber, 2007, p. 113; Davis, 2008, p. 27). The main aims and objectives of fair trade are to bring change to the lives of the producers and workers that suffer in the farms, but the bad implementation has made the farmers be left out of the benefits (Fridell, 2009, p. 89). With good implementation fair trade can be expressed in its benefits to the society where there will be no exploitation of the farmers. There will be better living conditions, improved well being, and better working conditions for the workers (Valkila, Nygren, 2010, p. 326; Weber, 2007, p. 114). The benefits that come with fair trade are yet to bear fruit especially when markets are not regulated properly and farmers become marginalized. Conclusion Starbucks being the leading coffee server in the world has a mandate to transform the lives of peasant farmers who live from hand to mouth by sharing the huge profits they make annually. They can contribute to the welfare of the producers and workers through providing better prices, adequate infrastructure, security, better housing and sanitation, better health services access and better educational provisions in the producing areas to ensure sustained growth. In conclusion Fair trade certified coffee has brought about reforms to the society in certain areas but in other areas it still remains an elusive dream due to the management of the organizations that govern coffee. Standards of transparency and accountability should be established at all levels so that the coffee produced by farmers can contribute to their social well being rather than making huge profits in developing countries leaving the producers fleeced.

Reflection On The Management Of Care

Reflection On The Management Of Care This essay will present a reflective journal describing the different care requirements of patients from three different client groups undergoing surgery. I will describe the care of one of the client groups and subsequently compare and contrast the differences in their needs. This reflection will explore the strategies and skills for management used in the delivery of care to these individuals and demonstrate the team-working skills necessary for an effective working relationship in the clinical setting. I will show an appreciation and understanding of how to identify measures to protect and support wounds to provide optimum conditions for healing associated with current evidence-based practice. The modified version of Driscolls (2000) reflective framework will be used. The descriptive part of the journal can be found in Appendix1.These three client group will include the following: baby George 1 year old child., Helen 35 year old female and Damian 70 year old male. All names of the three clients groups mentioned are anonymous to maintain patient confidentiality (HPC, 2008) SO WHAT During the process of care to the above client groups I shared the teams desire to realise the best possible outcome for all of the patients. Interdisciplinary patient care requires common values, a common vision, and an understanding of teamwork with the ultimate goal of serving three difference clients group with wisdom (Ray, 1998).I also wanted to demonstrate recognition of the needs for Helen, Damian and George, and believe that they should be regarded as valued human beings who deserve the best care. Kumar and Hutton (1998) states that the responsibility of the theatre personnel lies in maintaining the safety comfort and welfare of the patient from the time he arrives in the theatre until the time he departs. In theatre environment one of my role was to act as Helen, Damian and George advocate through their journey thus ensuring that their dignity and rights was in the forefront of preoperative care (Wicker and ONeil 2006). Damian, George and Helen were of different age and had different surgery, according to their needs, their right to dignity, privacy and respect remained the same and the high standard of care delivered reflected that. In this situation George and other clients group privacy and dignity perioperative always been maintained and a warm blanket has be used to cover the child and other clients group until surgery commences (Woodhead et al. 2005). As a student ODP, I was responsible for the delivery of high standard of care for three different clients groups. The Health Professions Council (2008) states that registered practitioners must be able to work, where appropriate, in partnership with other professionals, support staff, client users and their relatives and carers. Whilst Helen was on the table I checked consent, wrist band and surgical side with the scrub practitioner, the surgeon and the rest of the team to ensure that right patient is presented for the correct procedure that all details and information are available, and that preoperative preparation is complete (Torrance and Serginson 1999). An agreed preoperative WHO checklist has been done by one of my colleagues to introduced ourselves and discuss our client so that we have a shared understanding of the patient condition and the operative challenge (or that it may be a straightforward procedure with no anticipated problems) (Wilson and Walker 2009). Evidence based practice has become an important part of the quality required within the peri-operative environment. All theatre practitioners are required to keep their professional practice up to date and there is also an increasing expectation for the practitioner to develop research based practice and to keep informed with regards to relevant research findings (Hind and Wicker 2000).The knowledge and skills were very important aspects for effective working relationship in the theatre to maintain safety environment individually for each of the discussed group. Health professionals should strive to ensure quality and safety for those in our care (RCN, 2003). For Helen and Damian I ensured the temperature was 22C and made sure that the warming device (Bear hugger) was placed over the top of their body to maintain and monitor their body temperature. Because of the potential morbidity associated with hypothermia and hyperthermia, it is important to monitor body temperature and to institute measures to maintain temperature as close to normal as possible (Townsend et al. 2004). However carried for George, I adjusted room temperature to 25C and warming device was also applied. Children have a higher surface area to body weight ratio compared with adults, and so they lose heat more rapidly. Neonates and preterm babies are particularly susceptible to hypothermia (Bingham et al. 2008). Torrance and Serginson (1999) state that the theatre practitioner needs to be aware of and monitor safety with regard to: safety transfer and positioning of the patient, pressure relief, skin preparation, asepsis, diathermy, swabs, needles and instruments. Transfer of and positioning Helen, Damian and George for the orthopedic surgery onto the operating table was carried out by the theatre team with extreme care and with regard for any previous injuries or limitations of joint movement (Torrance Serginson 1999). We were aware about the implications of inadequate movement in the above clients. Injuries can range from transient aches and pains and minor skin abrasions to paralysis and even loss of life (Beckett, 2010).Pressure reliving gels was provided to protected Helen and others clients aligned with pressure ulcers caused by long-term procedures. Unrelieved pressure on a specific area of the body will affect the blood supply to the skin and underlying tissues causing that area to become damaged (Hampton and Collins 2004). Equipment was selected appropriate to the age and individual requirements of each client. George compared with others groups of client required appropriately sized equipment which was used of all times, e.g.: diathermy plates, arm boards, specific pediatric table attachments for positioning (Woodhead et al. 2005). I made sure that sterile field consisting the scrub team, trolleys and the draped patient was maintained. Packets were opened and sterile items passed to the scrub practitioner in a manner that did not compromise the sterile field. As I was circulating I noticed that asepsis (or aseptic technique) was important and it involved all the practical measures taken to avoid ingress microbes to a susceptible site (such as instrumentation, theatre ventilation, and non touch technique), or to kill or remove them from that site (such as skin antisepsis and wound cleansing) (Quick and Thomas 2000). Aseptic technique was used during all invasive procedures for Helen, Damian and George in preventing surgical site infection from microbial contamination. During all groups of client operations the scrub practitioner used non-touch technique by passing sharp instruments such as blades or sutures on receiver so that the operating surgeon may lift them as opposed to passing by hand (Pirie, 2010). Instruments were placed in the neutral zone by the scrub person and then picked up by the surgeon or the assistant, and vice versa (Gruendemann and Magnum 2001). Once Helens operation was completed, I handed the necessary wound dressings to the scrub nurse. This also forms a part of the circulating role. It is therefore important that the scrub person or surgeon ensures that the correct dressings were requested to optimise wound healing. Bentley (2004) suggests that effective wound management and use of appropriate dressings should be based on an understanding of the healing process. Wound healing consists of four phases that overlap; these are inflammatory, destructive, proliferation and maturation (Nazarko, 2002). The steps in the wound repair process include inflammation around the site of injury, angiogenesis and the development of granulation tissue, repair of the connective tissue and epithelium and ultimately remodelling that leads to a healed wound (Gunnewitch and Dunford 2004). The roles of surgical dressings are primarily to stem bleeding, absorb exudates and provide mechanical and bacterial protection for the newly formed tissues (Aindow and Butcher 2005). As Dealey (1994) highlights, the surgeon is responsible for inflicting the wound, although the bulk of the responsibility for ensuring that the wound heals without complications falls with the nurse. Lay-Flurrie (2004) urges that theatre practitioner should have a good knowledge of the dressing properties characteristics and an idea of what is to be achieved. The use of an inappropriate dressing may result in damage to the friable and delicate tissue underneath (Lay-Flurrie, 2004). During this surgery I also learnt that the needs of each individual clients wound at any particular time after the surgery need to be prioritized as it may differ while it progresses through the healing process. The hospital where I was on placement used two main types of dressings for postoperative wound management, these fall under the following categories, fabrics and films. (Aindow and Butcher 2005).The wound dressing used for Helens right shoulder arthroscopy was Mepore (fabric) for a dry small incision compared with Damians total hip replacement; the surgeon used Opsite (film) for larger incision. Mepore incorporates pads to absorb the exudates produced by newly formed wounds. However while they form an effective barrier when dry, they can facilitate bacterial ingress when wet (Aindow and Butcher 2005).Opsite provides a barrier which prevents the contamination of the wound with extrinsic bacteria, including MRSA. As the wound is visible, dressing removal is unnecessary to inspe ct the wound. This further minimizes trauma and the risk of accidental wound contamination (Aindow and Butcher 2005). Ennis and Meneses (2000) state that, many chronic wounds such as pressure ulcers, take months and sometimes years to heal, becoming stuck in the inflammatory and proliferate phase of wound healing. Additional measures to reduce the risk of infection should be taken; these include avoiding unnecessary exposure of the joint implant for Damians surgery. Therefore it should not be removed from packaging until required. Extensive handling of the implant should be avoided (Eppley, 1999, citied by Radford et al.2004). DOH (2003) state that, wound care has a large impact on the total drug budget and it is important that limited resources are used wisely and effectively. The primary purpose of wound cleansing is to remove organic and inorganic debris before the application of a wound dressing, thus maintaining an optimum environment at the wound site of healing (Morrison and Wilkie 2004).Blunt (2001) agrees that wounds should be cleaned to remove foreign bodies, such as debris, excess exudates, necrotic tissue or slough all of which could become a focus for infection. NOW WHAT While working as a member of the multidisciplinary team, the importance and value of teamwork has become apparent to me throughout my training and I have learnt how good communication, skills and working together ensures effective patient care for the three different client groups undergoing surgery. I have been able to establish and maintain a safe working place by improved confidence which has led to an improvement in my competence. I believe that I have become a valued member of the theatre team by anticipated with the scrub team by passing appropriate instruments, sutures and wounds dressing to protected Helen and other clients from the infection and covered to maintain them dignity. It also demonstrated my ability to explore and critically analyze own responsibilities in the following area identify measures to protect and support wounds to provide optimum conditions for healing. The experience described enabled me to reflect deeper on my ability to support different groups of patients and as a result my commitment to achieve the best patient outcome. References: 1. Aindow, D.Butcher M. (2005) Tissue vability supplement. The British Journal of Nursing, 14 (19), p. 2. Beckett,A,E.(2010)Are we doing enough to prevent patient injury caused by positioning for surgery?[Online].Available at: http://findarticles.com/p/articles/mi_m0748/is_1_20/ai_n48711688 [Accessed: 11 March 2010]. 3. Bingham, R. Lloyd-Thomas, A. Sury, M. (2008) Hatch Sumners Textbook of paediatric anaesthesia. 3rd Edition .Oxford: Oxford University Press. 4. Blunt J. (2001) Wound cleansing :Ritualistic or research-based practise ? Nursing Standard, 16 (1), p.33-36. 5. Department Of Health (2003).Supplementary prescribing by nurses and pharmacists within the NHS in England. [Online]. Available at: http://www.doh.gov.uk [Accessed: 19 February 2010]. 6. Driscoll, J. (2000) Practising clinical supervision. Edinburgh: Balliere Tindall 7. Ennis, W. Meneses, P. (2000)Wound healing at the local level: The stunned wound. [Online]. Available at: http://www.ncbi.nlm.nih.gov/pubmed/10732639 [Accessed: 18 February 2010]. 8. Gruendemann, B. Mangum, S. (2001) Infection prevention in surgical settings. Philadelphia: W.B Saunders. 9. Gunnewicht, B. and Dunford, C.  (2004)  Fundamental aspects of tissue viability nursing. Wiltshire:HA Healthcare. 10. Health Professions Council (2008) Operating Department Practitioners. Standards of proficiency. London: HPC. 11. Health Professions Council (2008) Standards of conduct ,performance and ethics.[Online].Available at: http://docs.google.com/www.hpc-uk.org/assets/documents/July2008.pdf+Standards+Of+Conduct+,Performance+and+Ethics.[Accessed:01 March 2010]. 12. Hind, M., Wicker, P. (2000) Principles of perioperative practice. London: Churchill Livingstone. 13. Lay-Flurrie (2004)Wound management to encourage granulation and epithelialisation. Professional Nurse, 19 (11), p.26-28. 15. Meltzer, B. (2001) A guide to patient positioning. [Online]. Available at: 16. Morison, L, G. Wilkie, O, K. (2004) Chronic wound care:a problem-based learning approach.London: Mosby. 17. Nazarko, L. (2002) Nursing in care homes. 2nd ed. Oxford: Blackwell Science. 18. Pirie, S. (2010) Introduction to instruments. [Online].Available at: http://findarticles.com/p/articles/mi_m0748/is_1_20/ai_n48711689/. [Accessed: 1 march 2010]. 19. Quick, C.Thomas, P. (2000) Principles of Surgical Management. Oxford: Oxford University Press. 20. Radford, M. County,B. Oakley, M. (2004) Advancing Perioperative Practice. Cheltenham: Nelson Thornes Ltd. 21. Ray, M, D. (1998) Shared borders: achieving the goals of interdisciplinary patient care. American Journal of Health-System Pharmacy, vol. 55, issue 13, p.1369-1374 AJHP [Online].Available at: http://www.ajhp.org/cgi/content/abstract /55/13/1369 [Accessed: 6 March 2010] 22. Royal College of Nursing (2003) Clinical Governance:an RCN resource quide.London:RCN. 23. Scott, E.Earl, C.Leaper, D.Massey, M.Mewburn, J.Williams, N (1999) Understanding perioperative nursing. Nursing Standard, 13(49), p.49-54. 24. Torrance, C .Serginson, E. (1999) Surgical Nursing.12th Edition. London: Harcourt Brace and Company Limited. 25. Townsend, M, D. Beauchamp, D .Evers, M. Mattox, K. (2004) Sabiston textbook of surgery.the biological basis of modern surgical practice.17th Edition. Philadelphia: Elsevier Saunders 2004. 26. Wicker, P. ONeil, J. (2006) Caring for the perioperative patient. Oxford: Blackwell Publishing. 27. Wilson, I. Walker, I. (2009) The WHO Surgical Safety Checklist: the evidence. The Association for Perioperative Practice,19 (10), p.362-364. APPENDIX 1 WHAT During my placement in the orthopaedic theatre, I took the role of the circulating person for the first operation on the list that day. Helen (pseudonym) was 35 years old woman, and was having right shoulder arthroscopic surgery. Before Helen arrived in the theatre, I took great care to ensure the operating room had been cleaned and had all the equipment and instrumentation for the procedure available. I adjusted the temperature in the theatre to 22 c and humidity between 40-50% .Next I helped the scrub nurse with gowning and gloving. I followed aseptic technique and opened relevant sterile packs, pouring lotions and I did the first swab, instrument and needle count with the scrub person so it was recorded on the board. When Helen arrived into the operating room on a trolley, I made sure there were enough members of staff to safely transfer the patient from the trolley onto the operating table using a pat slide ensuring that the patients dignity was maintained. The anaesthetist took responsibility for the patients head, neck and airway, and co-ordinated the team as the patient was turned. Helen was placed in the left lateral position with her arm placed in traction for better access to the shoulder joint. Before the transfer I ensured that the doors were closed and patient was not exposed unnecessarily and during the positioning of Helen my role included a final check, to make sure that patient was appropriately covered and ensured pressure reliving gels were placed under her left shoulder, buttock and heel. Whilst Helen was being transferred from the trolley onto the operating table adequate padding was provided and body alignment was maintained. She was secured with a strap and the lower arm adjacent to the head. I checked the patient consent, patients wrist band and surgical side with the scrub practitioner the surgeon and the rest of the team. The WHO checklist was read out loudly by one of my colleagues to identify any problems and concerns from anaesthetic and surgical side (blood loss, ASA grade).Additionally, a pneumatic compression system (flowtron boots) was employed prophylactically against deep vein thrombosis, the diathermy plate electrode was attached and bear hugger a patient warming device was positioned. When draping was completed I adjusted the light and assisted with connecting the monitoring equipment, and positioning the diathermy machine and suction tubing around the operating table so that they did not compromise the sterile field .I ensured that electrical cables were secured. I completed the patient care plan, and filled out the pathology form for the specimen ensuring that the form bore the patients label containing details of the patients name, address, date of birth, NHS number and patient number. During the surgery I anticipated the needs of the surgical team, especially carrying out the instructions given by the scrub person. I counted needles, blades, and instruments and compared the count with the board.One of the theatre practitioners measured and informed the surgeon and anaesthetist about blood and fluid loss recording it on the board. Under the direction of the scrub practitioners I collected the specimens into the specimen containers, labelled with the patients label which included the name of the specimen which was confirmed with the surgeon. I did the final count of the swabs, needles and blades and instruments then handed the surgeon the necessary wound dressing. Once the wound was appropriately dressed all team helped to remove the patient drapes and transfer her to the supine (position lying on the back) on the trolley. Using a blanket I covered the patient. I signed the operations register with the scrub practitioner at the end of the operation. When Helen had gone to the recovery, I started to clean and prepare the theatre for the next case.

Federalists and Anti-Federalists Essay -- History Historical Politics

The Constitution, when first introduced, set the stage for much controversy in the United States. The two major parties in this battle were the Federalists and the Anti-Federalists. The Federalists, such as James Madison, were in favor of ratifying the Constitution. On the other hand, the Anti-Federalists, such as Patrick Henry and Richard Henry Lee, were against ratification. Each party has their own beliefs on why or why not this document should or should not be passed. These beliefs are displayed in the following articles: Patrick Henry's "Virginia Should Reject the Constitution," Richard Henry Lee's "The Constitution Will Encourage Aristocracy," James Madison's "Federalist Paper No. 10," and "The Letters to Brutus." In these documents, many aspects of the Constitution, good and bad, are discussed. Although the Federalists and Anti-Federalists had very conflicting views, many common principals are discussed throughout their essays. The preservation of liberty and the effec ts of human nature are two aspects of these similarities. Although the similarities exist, they represent and support either the views of the Federalists or the Anti-Federalists. Patrick Henry makes his views very clear in his Letter. He is obviously against ratifying the Constitution. His main argument's consists of the sovereignty of the states, the system of checks and balances and the senate, the leaning towards a monarchy, and absolute power. Henry thinks that the uniting of all the states under one government would take away the sovereignty of the states. He states that, "Here is a resolution as radical as that which separated us from Great Britain. It is radical in this transition; our rights and privileges are endangered, and the sove... ...he other hand, Madison discusses the topic of liberty in that it is what fuels factions. He says that removing liberty is one of the only ways to destroy a faction. He proceeds to state that this is not probable, and that factions can not be destroyed, but we must control their consequences in order to have a stable government. Madison believes that the Constitution preserves man's liberty by fairly representing them in a central government. All of the topics discussed in these essays are very relevant to their respective causes. They are all backed up with valid information and examples. These essay's were written by very respectable men and show much insight on the subject of whether or not the Constitution should be ratified. The Federalists and Anti-Federalists had very opposing views, but used some of the same topics to support their point of views.

The Career of Lance Armstrong :: essays research papers

It’s a year since we bid farewell to a legend the ultimate cycling champion. He is a cyclist who has overcome all the challenges life has thrown his way and still continues to do so. Lance Armstrong known around the world for what he has achieved and overcome. Armstrong’s name has become synonymous with the unique yellow jersey of the punishing Tour De France. It is the life and story of a true legend. Armstrong is just a man like any one of us a man who had dreams as a child of becoming someone famous his dream was to win the tour de France at twenty –four he was well on his way to becoming a top cyclist then in October 1996 he was diagnosed with stage four testicular cancer it seemed as if this time he was fighting a losing battle however Armstrong has possessed an epic sense of determination he dismissed the medical odds on that day his life changed forever this was a battle that would demand all hi energy this was a battle he was determined not to lose this determination helped him to develop into the world class cyclist he became he himself acknowledged the irony that â€Å"cancer was the best thing that ever happened to me’’ Just sixteen months after been discharged from hospital he entered the Tour De France the most grueling of all human endurance tests and won it in the fastest ever time who would have believed that a man on the verge of death would rise to become a champion of this stature Armstrong will admit even though he has won seven tour De France tittles his closet and most intense race was his one against cancer this race had the steepest hills, the sharpest turns and the slipperiest roads. It was a race in which he came face to face with death, and he won. Sunday the 24th July 2005 brought an end to his illustrious career. It was the day he wrapped up his 7th Tour De France victory, the day he retired and a day that will be remembered for many years to come. Since overcoming cancer he became the name that dominates the sport of cycling. Lance Armstrong revitalized cycling and the Tour de France, he turned cycling into a world-class sport and the Tour de France into a mega media event. I am sure that we were all in awe of this amazing mans courage and his wonderful achievements beyond all odds.

Alicia Moore (Pink) Essay -- Biography Singer Pink Essays

Alicia Moore (Pink) Alicia Moore, or Pink as she is better known, has become a music sensation around the United States. My reason for choosing her as a topic is the fact that she was born and raised in Doylestown, Pennsylvania my hometown. Doylestown is about an hour northeast of Philadelphia, and it’s easy to take note of anyone famous who comes out of D-Town, as it is called, because it is not the largest of areas. Pink went to the rival high school of mine, Central Bucks High School West, and I actually know a few people who knew her as Alicia Moore through various activities. Pink had a very rough childhood. She wanted to leave her house and envisioned a better life for herself when she was growing up. "I was screwed up, lost and unhappy," she said of her childhood. Her parents were fighting all the time and eventually divorced when Pink was only eight years old. She had little interest in school, got kicked of the house by her mother when she was 15, and went to live with her father and then dropped out of C.B. West her junior year. She claims she never even had any friends her own age. "My best friend was an 85-year-old woman who lived across the street," she said. Despite a difficult childhood, she always felt music was going to be her life. "I always knew I wanted to sing. I would tell my first grade teachers, 'Homework? What? I'm a rock star!' Seriously, I had it in my mind and that's why I fought with my parents so much because I was 30 by the time I was 10. I was ready to go, like, 'Come on. Put me onstage. Where's Star Search? What's going on?' An d it couldn't happen fast enough." After dropping out, Pink worked in places like Pizza Hut, McDonalds and Wendy's, but she was never on time and basically, hated tak... ...t happened all over again." Pink’s individuality is really shown throughout her life, from the desire to be a musician from a young age, to her comments on the other music icons of her age and gender. Pink’s music is unique and no two songs seem to sound the same. She’s a girl that knows what she wants and I think this will aid in her staying atop the charts for a long time. It’s seems very impressive and almost a claim to fame for my hometown, that Alicia Moore, Pink, a Doylestown native, has made such a large impact on the world of music. Works Cited: MSN Web Page, http://ninemsn.com.au/entertainment/music/pink.asp The Billboard Music Web Page, http://www.billboard.com The Detroit Free Press Web Page, http://www.freep.com/entertainment/music/pink30_20011130.htm The MTV Web Page, http://www.mtv.com/bands/p/pink/news_feature_112101/index2.jhtml

Barilla Spa Case Study

Barilla SpA (Barilla), is an Italian largest pasta manufacturer in the world manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has been facing huge variability in demand which is straining the manufacturing and distribution network of the company. This fluctuation in demand, are forcing the CDCs to maintain a higher level of inventory. The proposed new system, Just-In-Time Distribution (JITD), is the solution suggested to resolve the demand fluctuation issues and lower costs.This new process would move forecasting and shipment allocation responsibilities to Barilla rather than allowing each distributor/retailer place the order amounts separately. This approach has both internal and external complications as there is much resistance from both within the company and from the suppliers and distributors. Implementing the JITD is a good idea for a number of reasons.This will streamline the information flow, reduce uncertainty in demand , reduce t he lead time, and decrease both finished and raw material inventory, thus making the system efficient and reducing the overall cost. A good plan would be for Barilla to start by running a pilot test within its own depot then with 1 or 2 distributors and  use the results of the test regarding the cost savings and improvement in supply chain efficiency to convince other distributors about how beneficiary will be to all by implementing JITD.ISSUE IDENTIFICATIONImmediate issue:The main issue in this case is the fluctuating demand imposed on Barilla’s manufacturing and distribution system. Once this is brought under control, many other problems will be solved. These following are some of the causes of this fluctuating demand that must be addressed: Demand fluctuations (Bullwhip effect)Cost of having to hold high inventory in order to meet distributor’s order Transportation costBarilla’s sales strategy relied heavily on the use of promotions Long Lead timeCustomer s ervice.Higher overall warehouse and transportation costsSales Representatives Incentives based on the amount of the products that they sold to the distributorsISSUE IDENTIFICATION & ROOT CAUSE Demand fluctuations (Bullwhip effect)As the 1980s progressed, Barilla has been facing huge variability in demand essentially affecting dry products, such extreme demand fluctuation strained the manufacturing and distribution network of the company (see Exhibit 12) Cost of having to hold high inventoryThis fluctuation in demand and the difficulty of the manufacturing process to deal with fast-track orders are forcing the CDCs to maintain a higher level of inventory in order to meet distributor’s order. â€Å" A distributor warehouse held a two- week supply of Barilla dry products in inventory†. (see Exhibit 13) Reduce the number of SkusTransportation costThe greater number of trucks that it required in periods of high demand increased its Transportation costs. Barilla’s sal es strategy relied heavily on the use of promotions In the form of price, transportation and volume discountsLong Lead timeBarilla supplied its distributors between 8 and 14 days after it received their orders, the average lead-time being 10 days. Customer service Barilla has no visibility when it comes to plan and forecast in order to meet the customer demand. Higher overall warehouse and transportation costsThe fluctuation demand may lead to overtime shifts in order to meet the demand, higher inventory of raw materials and frequent capacity adjustments, as well as higher transportation costs which all increase the overall cost of the product. Sales Representatives Incentives based on the amount of the products that they sold to the distributors. This was causing problems as the sales reps would try and push more products during the promotional period to get a bonus and were not able to sell as much during non-promotional periods.ALTERNATIVES AND OPTIONThe proposed new system, Just -In-Time Distribution (JITD), is one solution I suggest to resolve the demand fluctuation issues and lower costs. PROS:1- Resolve the demand fluctuation that often lead to the bullwhip effect. 2- Offer additional service to the customer at no extra cost 3- Increase supply chain visibility and there by fewer stock outs 4- Reduce forecasting errors5- Lower cost of capital tied up in inventory 6- Improve customer service 7- Improve the information flow, 8- Reduce the lead time 9- Decrease both finished and raw material inventory, thus making the system efficient and reducing the overall cost. CONS:1- Heavy Investment in information technology in order to implement the JITD program 2- The internal resistance to the JITD system, comes from the  production, sales and marketing divisions and the top management. The production division is concerned about the lack of a sophisticated forecasting system in order to properly use the data received from the distributors in an efficient way. The sales representatives are concerned about their compensation, they will lose their incentives, because the sale will be predictable or flat and their responsibilities will be minimized under the new mode of operation.The top management will be concerned about the added responsibility of predicting demand on Barilla without any guarantee of cost reduction. 3- The external resistance comes from the distributors and retailers. They will be concerned about the loss of control in deciding their inventory levels. The JITD system gives more power to Barilla which may be looked on with doubt by some distributors who are not sure about the long term intentions of Barilla.These distributors expressed concerns about becoming too tight to Barilla and fearful of losing control by giving Barilla the power to push products into their warehouse just so they Barilla can reduce its costs. 4- Difficulty to run trade promotions with JITD which may push the customer to switch to another brand. 5- Custo mer need to improve their equipment ( computer, bar-code, scanner..) 6- Customer will have to share their sales data with Barilla on a daily basis in order to insure replenishment 7- Loss of control in deciding their inventory levelsRECOMMENDATIONS1- Eliminate or reduce the promotional discounts to customers because it leads to demand accumulation and a release during the promotion period. 2- Volume discounts to distributors should be reduced or eliminated for the same reasons highlighted above. 3- Barilla should also move to a new compensation for sales representatives, they should be rewarded on company performance not on their own. Their responsibilities and relationships should be closer to distributors and retailer in order to improve and insure Barilla’s customers satisfaction. 4- The distributors will have to be offered collaboration incentives in order to keep them on board 5- Keep the assessment period the same but stagger the end dates for these periods over sales r epresentatives to smooth out demand fluctuations.IMPLEMENTATIONHow to effectively implement JITD at Barilla? And When?1- Start by running a test pilot within its own depot then with few distributors and use the results to convince the internal and external resistance on how the new program will reduce dramatically their cost. and improve supply chain efficiency. 1- Collaborative Planning: Barilla and the distributors can work as a team and plan on different issues. 2- Manage the demand: Barilla should not only forecast demand but also should try to shape and influence it by marketing using surveys to determine the needs and expectations of the consumers and designing products to satisfy them.3- Gather information from point of sale: This model has been successfully implemented in Wal-Mart’s distribution system. However Barilla will have to improve its relationship with retailer and that will involve a costly investment as the retailer doesn’t have the computer to commu nicate the information to Barilla.MONITOR AND CONTROLThe JITD system has the potential to substantial reduce costs if it is implemented correctly. In order to do so Barilla should begin implementing JITD within its own Depots and expand with pilot projects with the Distributors. Therefore mentioned analysis discussed a variety of methods by which to make such implementation more viable than it was in the past. However, such a list is in no way conclusive. Ideas such as reducing the number of SKUs and rearranging distribution channels should also be explored in the long term as they can also result in substantial cost savings. Barilla should be able to monitor and control the partnership with its distributors by measuring their performance, these are the following list of inclusions that may be used for this purpose: