HRM INCIDENT 1 - Should He Be Fired Case Study Example | Topics and Well Written Essays - 500 words

HRM INCIDENT 1 - Should He Be Fired - Case Study Example There are certain situations that an employer needs critically to evaluate before deciding whether to fire or discipline an employee (Paetkau, 2007). Firing an employee means that an employee has to leave his or her job, while disciplining might mean suspending the employee with or without pay or resorting to corrective action based on the offence. Toni Berdit, area supervisor for Quick-Stop, a chain of convenience stores in Washington D.C was on his normal supervisory duty on one of the Sundays in the Center Street Store. According to the company’s policy, when the safe is being emptied, the manager has to be present, and the employee present has to place each $ 1000 in a brown bag and leave it on the floor next to the safe until the manager checks to be sure that the amount is accurate. That day Bill decided to save the supervisor’s time, as he was not there when the safe was being emptied; so he had counted the money before he arrived. The store got busy, and Bill accidentally mistook one of the moneybags for a bag that contained the customer’s groceries while packing, so he put the money in with the groceries. The supervisor arrived later on, and after noticing the money was missing, they began searching. Lucky enough the customer came back and handed the bag of money. Bill had violated the money-count ing procedure, so he was prior to losing his job. He complained to Toni how this would have a bad impact on his family and even promised to be the best store manager they could ever get in case he’s not fired. Toni then called his boss and after his approval, Bill was not fired. I agree with Toni’s decision of not firing Bill. This is because although the company’s policy was to terminate anyone who violated the procedure, it happened once and for the first time. Firing employees is not healthy for an organization because if Bill were fired, the company would have been forced to

Spectrum Brands Essay Example for Free

Spectrum Brands Essay -Remington leader on shaving and personal care products generates global revenue of US$350 million with 8 sales reps assigned to specific retailers. -United/Nu-Gro leaders in the lawn and garden care with sales US$550 million and insect control products with sales US$150 million, target customers who desire comparable products with lower prices than premium-prices. -Distributors offer same services than an internal sales force could and are responsible for the sales in the diverse geographical locations of pet retailer markets. Weaknesses -Spectrum through Rayovac have been able to secure space shelf space in a small number of retailers while competitors gain market share through greater control over distribution channels, retailers, and prices. -The United/Nu-Gro professional division has its own dedicated sales force that creates a lack and dependency on sales reps expertise. -The lawn and garden care, insect control and pet foods industries Spectrum is in have different seasons that the new sales force must balance. Opportunities -The sales force from competitors offers retail discounts and promotional discounts to retailers, distributors and wholesalers creating a competitive advantage that Spectrum may add as value to its new sales force. -A restructured sales force can focus on the sales growth with greater benefits for the company -Room for greater retail presence by offering product discounts and stealing market share from competition if the sales costs are better managed. Threats -That the new sales force would end up doing significant duplication of efforts if sales reps would call same retailers at the same time. -An ineffective selection process of the new sales force could disrupt the growth momentum of Spectrum’s individual brands and the relationships with retailers, wholesalers and customers. Competitors get the benefit. -The sales in the lawn and garden division may be a risk of having a poor season since sales depend on weather conditions. SWOT analysis In general, the current sales force is not efficient as it needs to be. Although the total sales of all divisions are steady, competitors are gaining shelf space through channels of distribution that Spectrum is not able to reach due to the lack of sales focus by its sales force. Inspite of the market share challenge, Spectrum is in a great position to increase the market share by carefully creating a sales force that would increase its market visibility. Market Analysis Battery Market Consumers rely on convenience and quality when purchasing batteries and tend to gravitate towards the brand names. Spectrum’s competitors are Procter Gamble 40% and Energizer battery brand with 40% of the market share. The alkaline battery is expected to dominate the market in 5 years. In Canada, the alkaline battery market is above CAD $300 million. Rayovac holds 20% of the market. It is a household seasonal product and 70% of the sales primary done during and after Christmas. Mass merchandisers, home garden centers and niche electronic stores are used as retailers generate 60% of sales, while 40% of sales are with wholesalers, distributors, especially in Wal-Mart with 40% of shelf space. Shaving and grooming products market. A combination of electronic grooming products and hair care applications with a growth of 3% and expected to continue. It has a sales cycle as gift giving season, shaving and grooming products are in high demand on Christmas, father’s day and mother’s day. Remington merged with Rayovacin2003; Remington (Now Spectrum) has secured 30% in USA and 21% in UK of the market share with global revenue US$350 million in 2003. The major competitors in the shaving market are Norelco (Philips) with rotary shavers and Braun-Gillette (Now Procter Gamble), while in hair care industry are Conair Corporation and Norelco that competes on quality and price. Sales reps have a direct presence in the success of sales since they manage sales directly with small niche retailers like salons, specialty hair and body care. It generates 35% of total sales. Wal-Mart retail generates 40% of sales as a traditional retail channel. Lawn and Garden Market It is driven by the baby boomers population. In North America more than 80% of household’s participants in garden activities generate a US$4 billion industry in sales and a potential annual growth of between 4% and 5%. The insect control products play an important role in this market. When new diseases appeared like West Nile virus and bone diseases, it increases demand for more insect control product raising the market in about 7% to 8% in sales. Scotts and Johnson Son, Inc are the market leaders with products like Ortho and Roundup. United/Nu-Gro company a Canadian subsidiary of United Industries Corporation in USA, is the number 2 company in lawn and garden products with a 23% market share and US$550 million in sales. The key of its success is in offering brand names such as Vigoro, Shultz, and CIL to targeted consumers  who want products at a low price. In the Insect control market, United/Nu-Gro is number 2 with 24% of market share and US$150 million on sales. Mass merchandisers and garden and home centers are the channels used generating 60% of sales in the consumer division. The professional division has its own sales team specialized in professional products for specific customers like golf courses and pest control operators generating 25% and 15% of sales respectively.

Changing roles of women :: essays research papers

Honey, I’m Home   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"Honey, I’m Home† now doesn’t even have a gender orientation to it, but only 30 years ago it referred to the â€Å"bread-winner† (the man of the house) coming home after a long day of work greeting his wife. This idea of male dominance is shown in the text Mirror on America, in the picture where the groom is holding his wife who is drastically smaller than him, showing some sort of dominance a male has over a female (63). It is also shown in the picture where the man looks like he came home from a long day of work and waiting for his wife to serve him dinner (62). Nowadays it’s a little different most women are employed full-time and have to come home to clean and cook for their families. Unfortunately, things are almost exactly the same the if not harder for women because now they not only have to cook and clean, but they also have to work.   Ã‚  Ã‚  Ã‚  Ã‚  Dave Barry, the author of the essay â€Å"The Ugly Truth about Beauty†, in the text Mirror on America believes women are too concerned with the way they look. He implies that women are never satisfied with their look, while all men â€Å"think of themselves as average looking† (35) . Women feel they have to strive to enhance their looks because the image society portrays of â€Å"beauty† is far from the average woman’s features. The author relays this message when he talks about supermodel Cindy Crawford giving out makeup tips:   Ã‚  Ã‚  Ã‚  Ã‚  Cindy had all these middle-aged women applying beauty products to their faces;   Ã‚  Ã‚  Ã‚  Ã‚  she stressed how important it was to apply them in a certain way, using the tips of   Ã‚  Ã‚  Ã‚  Ã‚  their fingers. All the women dutifully did this, even though it was obvious to any   Ã‚  Ã‚  Ã‚  Ã‚  sane observer that, no matter how carefully they applied these products, they   Ã‚  Ã‚  Ã‚  Ã‚  would never look remotely like Cindy Crawford, who is some kind of genetic   Ã‚  Ã‚  Ã‚  Ã‚  mutation. (35) Unfortunately, everyone even me has been affected by society’s view on beauty. I believe my view on â€Å"beauty† is very similar to that of most men. I believe a person’s beauty is easily enhanced by their personality.   Ã‚  Ã‚  Ã‚  Ã‚  The character and personality of a person is determined by their experience, background and childhood. Children are influenced greatly by their surroundings as well as their role models whether they are good or bad role models to have. The insecurities women have about their looks are due to their upbringing.

Product Life Cycle Essay

INTERNATIONAL PRODUCT LIFE CYCLE The international product life cycle is a theoretical model describing how an industry evolves over time and across national borders. This theory also charts the development of a company’s marketing program when competing on both domestic and foreign fronts. International product life cycle concepts combine economic principles, such as market development and economies of scale, with product life cycle marketing and other standard business models. The four primary elements of the international product life cycle theory are: the structure of the demand for the product, manufacturing, international competition and marketing strategy, and the marketing strategy of the company that invented or innovated the product. These elements are categorized depending on the product’s stage in the traditional product life cycle. Introduction, growth, maturity, and decline are the stages of the basic product life cycle. During the introduction stage, the product is new and not completely understood by most consumers. Customers that do understand the product may be willing to pay a higher price for a cutting-edge good or service. Production is dependent on skilled laborers producing in short runs with rapidly changing manufacturing methods. The innovator markets mostly domestically, occasionally branching out to sell the product to consumers in other developed countries. International competition is usually nonexistent during the introduction stage, but during the growth stage competitors in developed markets begin to copy the product and sell domestically. These competitors may also branch out and begin exporting, often starting with the county that initially innovated the product. The growth stage is also marked by an emerging product standard based on mass production. Price wars often begin as the innovator breaks into an increasing amount of developed countries, introducing the product to new and untapped markets. At some point, the product enters the maturity stage of the international product life cycle and even the global marketplace becomes saturated, meaning that almost everyone who would buy the product has bought it, either from the innovating company or one of its competitors. Businesses compete for the rema ining consumers through lowered prices and advanced product features. Production is stable, with a focus on cost-cutting manufacturing methods, so that lowered prices may be passed on to value-conscious consumers. Product innovators must guard both foreign  and domestic markets from international competition, while finally breaking into riskier developing markets in search of new customers. When the product reaches the decline stage, the innovators may move production into these developing countries in an effort to boost sales and keep costs low. During decline, the product may become obsolete in most developed countries, or the price is driven so low that the market becomes close to 100% saturated.

Assignment on Ncc Bank

Assignment on Customer Satisfaction of National Credit & Commerce (NCC) Bank Limited, Bangladesh Company Profile: National Credit and Commerce Bank Ltd. bears a unique history of its own. The organization started its journey in the financial sector of the country as an investment company back in 1985. The aim of the company was to mobilize resources from within and invest them in such way so as to develop country's Industrial and Trade Sector and playing a catalyst role in the formation of capital market as well.Its membership with the browse helped the company to a great extent in this regard. The company operated upto 1992 with 16 branches and thereafter with the permission of the Central Bank converted in to a full fledged private commercial Bank in 1993 with paid up capital of Tk. 39. 00 corore to serve the nation from a broader platform. Since its inception NCC Bank Ltd. has acquired commendable reputation by providing sincere personalized service to its customers in a technolog y based environment.The Bank has set up a new standard in financing in the Industrial, Trade and Foreign exchange business. Its various deposit ; credit products have also attracted the clients-both corporate and individuals who feel comfort in doing business with the Bank. Mission: To mobilize financial resources from within and abroad to contribute to Agriculture's, Industry & Socio-economic development of the country and to play a catalytic role in the formation of capital market.Vision: To become the Bank of choice in serving the Nation as a progressive and Socially Responsible financial institution by bringing credit & commerce together for profit and sustainable growth.Our wide range of merchants include Hotels, Restaurants, Airline and Travel Agents, Shopping Malls, Hospitals, Jewellery Shops, Mobile Phone and Internet Service Providers, Petrol Pumps and many more! Now NCC Bank Visa Credit Cards can also be used at all 142 ATM’s Booth and 600 POS (Point of Sale) of Dut ch-Bangla Bank. Instant Cash Advance: You do not need to carry cash any more if you have a NCC Bank Credit Card. You can withdraw cash up to 50% of your credit limit from any ATM across the country that shows Visa logo. Credit Facilities: NCC Bank Visa Credit Card offers you free Credit facility up to 45 days and minimum of 15 days without any interest (Purchase only). Supplementary Card | | | |NCC bank Visa Credit Card holder can also enjoy spouseCredit Card free of cost for lifetime and issue more Supplementary card. | | | |Reward Programs | | | |As a NCC Bank Visa Credit Card holder, you will accumulate Treasure points for every purchase made by using Visa Credit Card. For every Tk. | |50 and USD 1 spent on your Credit Card, you will earn 1 and 1. 5 Treasure Point accordingly and be closer to redeeming the reward of your | |choice. | | |Flexible Payment Option | | | |With the NCC Bank Visa Credit Card, you have the convenience to pay as little as 5% of your outstanding (or Tk. 50 0, whichever is higher) | |on the Card account every month, thus having the power and flexibility to plan your payments. | | | |Auto-Debit Payment Facility | | | |With the NCC bank Credit Card, you no longer have to stand in long queues for paying your monthly bill. You can pay your monthly bill | |through NCC Bank Account by instruction Auto-Debit. | | |Corporate Visa Credit Card | | | |Corporate is characteristic of individuals acting together; â€Å"a joint identity†; â€Å"the collective mind†; â€Å"the corporate good†. | | | |The new dimension of NCC Bank Visa Credit Card is Corporate Credit Card which has already started to benefit the Corporate Houses. | Objective of Corporate Customers *Fast and Accurate Services *Effective Communication *Attractive Pricing (Annual fee 50% discount on card fee) *Strong Communication *Smiling faces of the Bankers *Good Ambience in the Bank Our Corporate Offer Particular |Small (10-100) |Medium (101-500) |Large (500 above ) | |Card Fee |50% |50% |(Negotiable) | |Rate of Interest |2% |2% |2% | |Cash Withdrawal |2% |2% |2% | |Purchase |2% |2% |2% | |Maximum period of interest free |45 Days |45 Days |50 Days | |Replacement Card Fee |Charges |Charges |Free | |Late Payment Charge |Charges |Charges |Free | |Excess Over Limit Charges |Charges |Charges |Free | |Balance Transfer Facilities | | ||If anyone holds other Bank Credit Card, then NCC Bank will issue a credit card with equivalent limit and will issue a pay order by debiting| |card A/C from balance transfer option for the equivalent amount of total outstanding in order to full settlement and cancellation of other | |Bank A/C. | |Remittance Products | | | | | | |[| | | |p|Special Interest rate on Savings and Term Deposits | | |i| | | |c| | | |]| | | |[| | | |p| | | |i| | | |c| | | |]| | | | | | | |[| | | |p|Wage Earners Welfare Deposit Pension Scheme | | |i| | | |c| | | |]| | | |[| | | |p| | | |i| | | |c| | | |]| | | | | | | |[| | | |p|Loans for Real E state (Land purchase and House construction/renovation) | | |i| | | |c| | | |]| | | [| | | |p| | | |i| | | |c| | | |]| | | | | | | |[| | | |p|Advance against Regular Remittance | | |i| | | |c| | | |]| | | |[| | | |p| | | |i| | | |c| | | |]| | | All Services: |Brokerage House | | | | | | | |[pic][|Member, Dhaka Stock Exchange Ltd. |pic] | | | | | |[pic][|Full Service Depository Participant | |pic] | | |Treasury Service | | | | | | | |[pic][|Primary Dealer of Govt.Approved Securities | |pic] | | | | | | | |Remittance Service | | | | | | | | | | | |[pic][|Correspondence arrangement with more than 330 Financial Institutions all over the World | | |pic] | | | | | | | |[pic][|For Wage Earners Remittance we have Agency arrangement with 12 reputed Exchange Housescovering major Locations of our Expatriates | | |pic] | | |

Emerging Trends in E-Commerce Essay Example

Emerging Trends in E Emerging Trends in E-Commerce Essay Emerging Trends in E-Commerce Essay 1. Micro-payments – Among the most radical alterations in the coming months- not years- is the usage of micro-payment systems from a assortment of fiscal houses. e. g. . Paypal. Visa. WesternUnion. among others. including Bankss. This tendency is facilitated by the W3C working group that approved these protocols and proficient criterions for the interworking. These systems will alter non merely how we carry money but how we value money and believe about purchases. ( See how a purchase of $ 4. 99 feels in a nomadic app shop vs. at Dunkin’ Donuts. ) Payment systems that make it easier to purchase online. coupled with nomadic engineerings will speed up the use of planetary e-commerce applications. 2. Mobile technologies – More people entree the Internet on their Mobile devices than on any other device. We are quickly nearing the clip ( if we are non already at that place ) where designs must be created for the nomadic Web foremost. and for the desktop second. Mobile engineerings facilitate comparing shopping ; with the coming of barcode reader apps and price-comparison databases. a consumer could snarl a saloon codification in Walmart and rapidly cite merchandise reappraisals and monetary values on walmart. com ( or compare monetary values with Walmart rivals ) . Mobile engineerings besides facilitate impulse bargains – particularly with the coming of micro-payments tied to the nomadic device. Just late. Starbucks clients can non merely put an order with their Smartphone. but besides make a purchase. 3. Social media – As Facebook has become the most visited site on the Web. the function of societal media. including Facebook and its local ringers such as Twitter. is progressively of import. Social media sites progressively act as points of entry to e-commerce sites. and frailty versa. as e-commerce sites build evaluation. trueness and referral systems tied to societal media. Group purchasing ( e. g. . Groupon ) is besides deriving mainstream land. with many deal of the day sites viing for an progressively savvy consumer base. but betterments lie in front as the societal facets and user experience are refined. 4. Fulfillment options – I believe that users will desire to hold multiple fulfilments and return options when interacting with a seller: ship to turn to. courier. pick-up in shop. return to hive away. etc. Having many fulfilment options is how clients view their overall client experience. Some companies have made a concern proposition online by being exceeding in service to the on-line channel ( e. g. . Zappos ) . 5. Global handiness – Increasingly. consumers want the handiness to purchase merchandises from foreign sites and have them delivered locally. Thus. currency and imposts will be of turning concern to many on-line retail merchants. Along with this. there will be concerns with local privateness Torahs and limitations on related informations aggregation and storage. 6. Localization – While the tendency is to globalise. what’s frequently more of import is to place. User Centric’s research clearly shows that sites that feel’ local – with proper imagination. linguistic communication. time/date. weights/measures. currency. etc. – resonate far more than sites that seem culturally distant or unfertile. 7. Customizability – Consumers want control. and want to be able to plan the inside informations of the points they purchase. 8. Time-based handiness – Some of the hottest and most successful sites are those that have a time-critical response constituent. Sites like Groupon. Gilt and others capitalize on the perceptual experience of limited-time handiness. Making a sense of urgency thrusts traffic and purchase behaviour.

The Things You Can Learn From Death Records

The Things You Can Learn From Death Records Many people looking for information about their ancestors skip right past the death record, making a beeline for their marriage and birth certificates. Sometimes we already know where and when our ancestor died, and figure its not worth the time and money to track down the death certificate. Another scenario has our ancestor disappearing between one census and the next, but after a half-hearted search, we decide its not worth the effort since we already know most of his other vital facts. Those death records, however, can tell us much more about our ancestor than where and when he died. Death records, including death certificates, obituaries and funeral home records, can include a wealth of information on the deceased, including the names of their parents, siblings, children, and spouse; when and where they were born and/or married; the occupation of the deceased; possible military service; and cause of death. All of these clues can be helpful in telling us more about our ancestor, as well as leading us to new sources of information on his life. Date Place of Birth or Marriage Does the death certificate, obituary or other death record give a date and place of birth? A clue to the spouses maiden name? Information found in death records can often provide the clue you need to locate a birth or marriage record. Names of Family Members Death records are often a good source for names of parents, spouse, children and next of kin. The death certificate will usually list at least the next of kin or the informant (often a family member) who provided the information on the death certificate, while an obituary notice may list numerous family members - both living and deceased. Occupation of the Deceased Whether they were a farmer, an accountant or a coal miner, their choice of occupation probably defined at least a part of who they were as a person. You may choose to just record this in your interesting tidbits folder or, possibly, follow up for further research. Certain occupations, such as railroad workers, may have employment, pension or other occupational records available. Possible Military Service Obituaries, tombstones and, occasionally, death certificates are a good place to look if you suspect that your ancestor may have served in the military. They will often list the military branch and unit, and possibly information on rank and the years in which your ancestor served. With these details, you can then look for further information about your ancestor in military records. Cause of Death An important clue for anyone compiling a medical family history, the cause of death can often be found listed on a death certificate. If you cant find it there, then the funeral home (if still in existence) may be able to provide you with further information. As you go back in time, however, youll begin to find interesting causes of death, such as bad blood (which often meant syphilis) and dropsy, meaning edema or swelling. You may also find clues to newsworthy deaths such as occupational accidents, fires or surgical mishaps, that could lead to additional records. Death records also offer information that may lead to further research avenues. A death certificate, for example, may list the burial place and the funeral home - leading to a search in cemetery or funeral home records. An obituary or funeral notice may mention a church where the funeral service is being held, another source for further research. Since about 1967, most death certificates in the United States list the deceaseds Social Security number, which makes it easy to request a copy of the original application (SS-5) for a Social Security card, full of genealogical details.

Facts About the Whale Shark

Facts About the Whale Shark Whale sharks are gentle giants that live in warm waters and have beautiful markings. Although these are the largest fish in the world, they feed on tiny organisms.   These unique, filter-feeding sharks appeared to evolve about the same time as filter-feeding whales, around 35 to 65 million years ago.   Identification While its name may be deceiving, the whale shark is actually a shark (which is a cartilaginous fish). Whale sharks can grow to 65 feet in length and up to about 75,000 pounds in weight. Females are generally larger than males. Whale sharks have a beautiful coloration pattern on their back and sides. This is formed of light spots and stripes over a dark gray, blue or brown background. Scientists use  these spots to identify individual sharks, which helps them learn more about the species as a whole. The underside of a whale shark is light. Scientists are not sure why whale sharks have this distinctive, complex coloration pattern. The whale shark evolved from bottom-dwelling carpet sharks that have noticeable body markings, so perhaps the sharks markings are simply evolutionary leftovers. Other theories are that the marks help camouflage the shark, help sharks recognize each other or, perhaps most interesting, are used as an adaptation to protect the shark from ultraviolet radiation.   Other identification features include a streamlined body and broad, flat head. These sharks also have small eyes. Although their eyes are each about the size of a golf ball, this is small in comparison to the sharks 60-foot size. Classification Kingdom: AnimaliaPhylum: ChordataClass: ElasmobranchiiOrder: OrectolobiformesFamily: RhincodontidaeGenus: RhincodonSpecies: Typus Rhincodon is translated from the Green as rasp-tooth and Typus means type. Distribution The whale shark is a widespread animal that occurs in warmer temperate and tropical waters. It is found in the pelagic zone in the Atlantic, Pacific, and Indian Oceans. Feeding Whale sharks are migratory animals who appear to move to feeding areas in conjunction with fish and coral spawning activity.   Like  basking sharks, whale sharks filter small organisms out of the water.   Their prey includes plankton, crustaceans, tiny fish, and sometimes larger fish and squid. Basking sharks  move water through their mouths by slowly swimming forward. The whale shark feeds by opening its mouth and sucking in water, which then passes through the gills. Organisms get trapped in small, tooth-like structures called dermal denticles,  and in the pharynx. A whale shark can filter over 1,500 gallons of water an hour. Several whale sharks may be found feeding a productive area. Whale sharks have about 300 rows of tiny teeth, totaling about 27,000 teeth, but they are not thought to play a role in feeding. Reproduction Whale sharks are ovoviviparous and females give birth to live young that are about 2 feet long. Their age at sexual maturity and length of gestation are unknown. Not much is known about breeding or birthing grounds either.  In March 2009, rescuers found a 15-inch long baby whale shark in a coastal area in the Philippines, where it had been caught in a rope. This may mean that the Philippines is a birthing ground for the species. Whale sharks appear to be a long-lived animal. Estimates for the longevity of whale sharks are in the range of 60-150 years. Conservation The whale shark is listed as vulnerable on the IUCN Red List.  Threats include hunting, impacts of diving tourism and overall low abundance. References and Further Information: Associated Press. 2009. Tiny Whale Shark Rescued (Online. MSNBC.com. Accessed April 11, 2009.Martins, Carol and Craig Knickle. 2009. Whale Shark (Online). Florida Museum of Natural History Ichthyology Department. Accessed April 7, 2009.Norman, B. 2000. Rhincodon typus. (Online) 2008 IUCN Red List of Threatened Species. Accessed April 9, 2009.Skomal, G. 2008. The Shark Handbook: The Essential Guide for Understanding the Sharks of the World. Cider Mill Press Book Publishers. 278pp.  Wilson, S.G. and R.A. Martin. 2001. Body markings of the whale shark: vestigial or functional? Western Australian Naturalist. Accessed January 16, 2016.

Understanding the mythology through participation of a Hindu religious Essay

Understanding the mythology through participation of a Hindu religious ritual, The Saraswati Puja - Essay Example Excited with the prospect of being a part of one of the oldest religions in the world, I patiently waited out the days till the day of the Puja arrived. I reached his house and I was informed that the ritual they were celebrating was known as Saraswati Puja. I saw all house members dressed in their ethnic wear, either in white or in yellow. On asking, I was told that both were the colors associated with Goddess Saraswati who was worshipped as the goddess of wisdom. I saw voluptuous amounts of flowers and fruits being put up as offerings in front of a female stone idol that was depicted with four arms and a bird at its feet. People sat on the floor in a semi circular way in front of the idol with a priest sitting in front of it chanting rhymes or what is known as mantras. It seemed a bit difficult to understand in the beginning the significance of conducting such a ritual and seeing all members of the family sitting in front, hands folded and showering flowers on the idol at regular i ntervals. The celebration of the Saraswati Puja Nevertheless, I was asked by my friend to sit along with them and take part in the ritual. I had never really sat on the floor in the posture that they were sitting, which initially made it difficult for me to sit with folded legs. I was told by my friend that in Hinduism, one doesn’t sit in front of Gods with their legs aimed towards them, and that was why they had to fold their legs while offering praises. It was quite radical from what I had seen or heard about in other religions but I realized every religion had their own way of viewing and following things. I was quite impressed by the way I saw everyone being engrossed in the ritual and devoting all of their concentration, in spite of the physical difficulties of sitting cramped on the floor. My friend told me that Hindus believed that Gods would be impressed by the devotion with which followers worshipped them and would shower their blessings on them. I was highly moved w ith the amount of devotion that I was seeing from everyone in the family which made me realize how religious Hindus were. It was also fascinating to see the vast amount of fruits and sweets that were put up on plates but however no one was even touching it. I felt quite compelled to take a few pieces out of it, but was told that since those were put up as offerings, no one would touch it unless the rituals were over and they had been fed upon by the Gods. It sounded very mythological but I was amazed at the different ways in which people ensured of their devotion to Gods. It was also enlightening to know that the idea behind showering Gods and Goddesses with flowers came from the concept that the flowers represented purity, beauty and smell, all of which were considered to be pleasing to the Gods. Hence they always ensured that the freshest of flowers were brought for such rituals. I could also see a lot of incense sticks burning which were giving out a beautiful smell and I realize d how much importance the Hindus gave towards creating a perfect environment for worshipping their Gods, believing that Gods would bless them in seeing their devotion and efforts. It also in way made me realize the spirituality that Hindus possess which was so famous and desired all over the world, and I was at that time involved in such a ritual which was a direct essence of the spirituality of the Hindus. I felt glad that I had been invited to be a part of such rituals and traditions and I could see and understand the culture and religion at such closeness. I felt more and more at ease as time passed through the rituals and I could sense calmness settling inside me. At the

Macroeconomics (inflation) Essay Example | Topics and Well Written Essays - 1500 words

Macroeconomics (inflation) - Essay Example The inference is not necessarily correct: other explanations are equally logical and sufficiently important to be worth serious consideration. Many countries might experience inflation at the same time without international transmission of inflationary forces because they respond in the same way to common causes (Wickens 54). All countries have undergone long-period institutional and structural changes which, although not in themselves inflationary, have made them more vulnerable to inflation. One of these changes is a widespread increase in the resistance to reductions of nominal prices and wages. Another is the growing role of the public sector in most national economies, a development that may increase the vulnerability to inflation in a number of different ways, which are discussed in the appendix to this paper. Another possible cause of a decrease in the dispersion of rates of change in consumer prices and other comprehensive price indexes, such as gross national product deflato rs, is a convergence in the rates of productivity growth of different countries. These comprehensive price indexes tend to diverge from the corresponding national indexes of wholesale prices in degrees related to the growth in a country's productivity. If changes in national wholesale prices continue to be tied together, a convergence of national rates of productivity growth would cause a convergence of changes in their consumer price indexes and GNP deflators (Wickens 51). Gali (2008) underlines that monetary changes may directly release inflationary forces. In the monetary field, the development and expansion of the Eurocurrency market, even if it has not greatly increased the supply of what one chooses to call "money," has increased the supply of liquidity or reduced the demand for it. Similarly, the establishment of special drawing rights has provided a non-national addition to the international reserve assets of the recipient countries without increasing the liabilities of other countries. Other explanations of a decrease in dispersion of inflation rates are also possible. For example, inflation rates may have been generated in many countries at the same time merely because cyclical expansion in a number of important countries coincided to an unusual degree (Gali 77). Although the probability that such similarity of movement in several large countries occurred by sheer coincidence may not be high, it is not so low as to be negligible; such synchron ization has occurred at times in the past when the world economy is widely regarded as having been less integrated than it is now, and it occurred then to a greater extent than in some subsequent periods, as is indicated by the evidence cited in the appendix (Gali 72). As national inflation rates may converge without increased international transmission through market forces, so may such transmission increase without making inflation rates converge. Indeed, an increase in such transmission may even increase the dispersion of some measures of inflation. This may be more than a possibility with regard to dispersion of consumer price in

Legal Framework in Employment Essay Example | Topics and Well Written Essays - 3750 words

Legal Framework in Employment - Essay Example As per common law, an employer has the right to dismiss an employee with prior notification. Terminating an employee without prior notice is a ‘wrongful dismissal’ against which an employee can sue the employer. Unfair dismissal is created by statute law, and it may occur even with proper notification. The Employment Rights Act 1996 has given six potentially fair reasons for terminating an employee. The employer has to ensure that the decision of dismissal, he has made justified and is conducted fairly.Employment Relations Act 1996, section 98 (4), provides details to declare a dismissal fair or unfair. The employer is responsible to justify a fair dismissal and likewise give reasons for unfair dismissal. In any case, if an employer is unable to prove that the dismissal is justified as per the Employment Relations Act 1996, it will be declared as unfair.Not only the law provides support to the employees the employers also have equal defenses to claim the fairness of thei r dismissal decision.In the case [British Leyland (UK) Ltd v Swift, (1981)], the employer’s decision was declared as ‘fair’ by the court of law as the employer justified his decision claiming to terminate an employee due to misconduct.In another case [Iceland Frozen Foods Limited v Jones, (1982)], the employer terminated a night-shift foreman at the warehouse. The employer held the employee responsible because he could not secure the warehouse at night which resulted in slow production.

Ballistic pendulum Lab Report Example | Topics and Well Written Essays - 750 words

Ballistic pendulum - Lab Report Example Therefore, it rises to the maximum height allowed by their original kinetic energy In the experiment, the ball with mass m is fired from the spring gun with an original horizontal velocity v1. At time t= t1 , it collides with the pendulum with the mass M and the corresponding length L, which is originally at rest. At t=t2 the ball is trapped in the interior the pendulum. Moreover, the pendulum is at height h1 and the starts to move at the velocity v2 and swings upward. At t=t3 the ball is brought to halt at a height h2 by force of gravity. Initial velocity of the ball V1 is calculated by the measurement Through application of the Conservation of Energy to the ball-pendulum system amidst the two times t2 and t3, the time t2 is the instant subsequent to the collision and t3 is the instant that the ball pendulum combination stops at its underlying maximum height ( h2) Considering the projectile when there is no pendulum, originally travelling horizontally, the ball has a velocity v1 as it leaves the spring gun. Moreover, when it hits the floor it has travelled horizontal distance x and the vertical distance y. In case it takes time t, the basic emotion equations become x= v1t The pendulum was from the apparatus and the measurement of its mass was recorded using the triple beam balance. Mass of the steel ball was also recorded. The ball was placed in the pendulum’s catcher and the distance from the pivot to the balance of the pendulum and the ball combination was measured and recorded (L). The pendulum was reconnected and the ball was shoot so that it can get trapped by the pendulum for 5 times and the maximum angle was recorded. The angles were used to calculate the initial velocity for each one utilizing provided equations. Pendulum was removed out of the way and the ball was shoot and its landing taken into account. Black mat and the sheet of white paper were taped . The shoots were taken for 5 times in

Health Insurance Portability and Accountability Act's Ethics Essay

Health Insurance Portability and Accountability Act's Ethics - Essay Example A standard electronic device should be used to store all medical information of a person. The deadline for embracing the act was September 23, 2013. The health policy incorporates some ethical issues. These ethical issues include respect for the patient’s health information, confidentiality and honesty. HIPAA law has bought has established responsibilities for health care institutions. The HIPAA law has enhanced the confidentiality of the patients’ medical information. Confidentiality is the state of having something in a strict privacy or secrecy way. This helps to protect patient rights since only the required medical personnel’s can access the information. This is a component of providing quality medical health care. In a recent case, a patient suffering from paranoid schizophrenia got admitted to a mental hospital. The nurses at the hospital wanted to disclose the health information to the family. However, the patients’ physician refused since the patient had not allowed them to do so. The patients’ health rapidly improved, and within a week, he was ready for discharge. The patients’ health condition requires maximum respect. Respect is the condition of esteem. In the case of ongoing treatment, obtaining payments and for healthcare operations, one can share protected health information. Except for insurance reasons in order to receive payments written authorization should be presented any time one requires medical records. Under this condition HIPAA only allows access of minimum necessary information to perform job duties. This enhances respect for patients’ health information. In another case, a staff member in a medical practice disclosed HIV status of the patient. This happened mistakenly after the doctor’s office faxed medical records to the patients’ place of employment rather the new healthcare provider. He thereby disclosed PHI to several other individuals.

Embracing Cash Flow Ratios for predicting financial future Dissertation

Embracing Cash Flow Ratios for predicting financial future - Dissertation Example Acknowledgments I wish to forward my appreciation for the support, guidance, comments to my respected Supervisor, Supervisor’s name here, for his/her dedicated supervision towards this piece of work. Further, I am greatly thankful to the numerous colleagues; and friends whose work greatly facilitate me to comprehend the main theme of this research work. Financial ratios have failed to accurately predict the financial position of companies. Despite their widespread use in the financial world, the constant occurrence of business bankruptcies seriously highlights the inherent weaknesses of these ratios. Beyond any doubt, due to these shortcomings in these ratios, predicting successful or failed businesses have become a necessity; this necessity can be properly filled up if the use of cash flow ratios is adopted as these ratios do not take into account the subjective measures and depreciation. The fundamental difference offered by the cash flow ratios emanates from their cash basi s procedure rather than accrual basis. Cash flows have become a significant part towards performance and position evaluation of a company’s yearly performance. And, in this regard, Rose et al., (2007) contend that the cash flow information facilitates to the users of financial statements in a way to receive the related financial information relating to the source and use of particularly the entire financial resources over a particular time period. And that financial information is classified into the different segments of cash flow ratios statement such as operating, investing and financial activities (Macve, 1997). However, cash flow ratios have not been in use as the other financial ratios such as liquidity, investors, and so on. Thereby, technical and investment fund managers and analysts have been using these measures to determine and evaluate performance and position of companies. Despite their wide spread use for the purpose of evaluation, these financial ratios have be en unable to timely identify the possible presence of shortcomings in the strategic and operational policies of the companies. In this regard, Albrecht (2003) argues that these forms of ratios are inherently affected by the fundamental weaknesses of ‘accrual based accounting.’ Purpose of the study (problems with other ratios)

Health Insurance Portability and Accountability Act's Ethics Essay

Health Insurance Portability and Accountability Act's Ethics - Essay Example A standard electronic device should be used to store all medical information of a person. The deadline for embracing the act was September 23, 2013. The health policy incorporates some ethical issues. These ethical issues include respect for the patient’s health information, confidentiality and honesty. HIPAA law has bought has established responsibilities for health care institutions. The HIPAA law has enhanced the confidentiality of the patients’ medical information. Confidentiality is the state of having something in a strict privacy or secrecy way. This helps to protect patient rights since only the required medical personnel’s can access the information. This is a component of providing quality medical health care. In a recent case, a patient suffering from paranoid schizophrenia got admitted to a mental hospital. The nurses at the hospital wanted to disclose the health information to the family. However, the patients’ physician refused since the patient had not allowed them to do so. The patients’ health rapidly improved, and within a week, he was ready for discharge. The patients’ health condition requires maximum respect. Respect is the condition of esteem. In the case of ongoing treatment, obtaining payments and for healthcare operations, one can share protected health information. Except for insurance reasons in order to receive payments written authorization should be presented any time one requires medical records. Under this condition HIPAA only allows access of minimum necessary information to perform job duties. This enhances respect for patients’ health information. In another case, a staff member in a medical practice disclosed HIV status of the patient. This happened mistakenly after the doctor’s office faxed medical records to the patients’ place of employment rather the new healthcare provider. He thereby disclosed PHI to several other individuals.

3 Questions Essay Example | Topics and Well Written Essays - 750 words

3 Questions - Essay Example They were able to reduce their first class fares around 20-50% while regular coach fares were cut down by around 38% because of this innovative pricing strategy. Airline travels usually varies based on the seasons and the global political atmosphere. Business people and tourists were the main passengers of airliners and hence their numbers may vary based on the political and seasonal (climatic) variations in the world. So the airliners are adjusting their prices based on these variations in seasons. Another pricing strategy most of the airliners using are the bonuses for the more air miles travelled by the passenger using the same airline. This strategy will prompt the passengers to select the same airline for their future traveling needs in order to utilize the bonuses. Overbooking, discount fare traveling and carefully structured traffic management help the American airlines to ensure maximum passengers in every flight. The customers will often look for more options if the airliners are not flexible enough to reduce their prices. Moreover in a globalized environment the competition is immense in airline industry and hence only the cheaper prices ensure maximum passengers on flights. In every industry the pricing decisions and strategies must be decided based on the competition in the market. In a monopolized market the service provider has the complete freedom over fixing the prices of their product or services where as in a competitive market the pricing decisions and strategies may depend on other suppliers and external environments as well. Airline industry is a highly competitive industry because of the excessive number of private and public air passenger carriers. Most of the airliners experience shortage of passengers most of the times and hence pricing strategies are important for the existence of airliners. In some seasons the airliners will experience busy seasons and hence

Introduction to Personality Essay Example for Free

Introduction to Personality Essay Behavior geneticists assess the question of inheriting personality. Are our genes responsible for our creativity, aggressiveness or confidence? Examining personality traits through a genetic focus is an obscure task. Methods employed by behavior geneticists involve epidemiological studies, such as screening family pedigrees, conducting twin heritability studies, and adoption studies. Personality is best described as what makes up a person, their traits and individual differences that make them unique. There has been much research undertaken as to what actually causes a personality to develop whether it is nature (genetically inherited) or by nurture (the environment) research has shown that it is a combination of both. (Walter, shoda, smith 2003) Human society is complex and this presents researchers with difficulties in measurement of the environmental effect and to define exactly what causes personality. Psychologists and behavior geneticists have tried to estimate contributions made by genetics and the environment to individual differences through heritability. See more: how to start an essay Heritability is when research has been carried out to establish the contributions of genetics and the environment to a population sample. This is based on knowing the birth relationship (genetic relatedness), measuring the trait in question and making comparisons between groups with differing levels of genetic relatedness. The amount of variability in a trait or physical measurement within a population is accounted for to show how much has been inherited (genetically) and the percentage remaining is the environmental contribution. Twins were an excellent source of study since their DNA is identical. Before 1970 there was not much recorded information about twins, however there are now larger information sources and larger samples have become available. In Sweden and Finland the central recording of twins raised together and apart also improvements in the interpretation of statistics and technology enabled larger samples to be examined. Findings from heritability studies have shown that personality traits are associated with genetic influence, however this can vary depending on the trait measured, eg neuroticism shows heritability as 30% but measurements of extraversion/introversion show heritability as 50%. Measurements could be inaccurate as variables have to be considered eg environmental factors twins that have been reared apart may have still lived with a family member and could still be brought up in a similar way. The media stories have focused on successful reunions of twins previously separated, twins separated may spend years getting to know each other before they are researched which would be enough time to adapt their personalities. The time separation aspect could mean different things, eg some twins researched had actually spent some years together. (walter, shoda, smith 2003) Twin studies have often used different measures of a person, therefore the results may be unreliable unless the same measurement is taken each time. Other research in families involved examining differences in relatedness between other family members ie siblings, half-siblings, cousins, parents and children. There have also been adoption studies. Research has shown that nature has a proportion of about a third effect on personality, which would infer the larger effect on a personality derives from the environment. There is continual interaction between an organism and its environment from conception throughout life, environments that are both physical and made up with other people. Individual differences psychologists describe environments as ‘dimensions’ ie whether the child has been raised in a controlled or a relaxed environment, the mothers health and well being and the parents relationship. Personalities can change dependant upon the situation that the person is in. The Stanford Prison Experiment is an example of a social experiment where volunteers undertook new roles. Twenty four were selected after various tests to rule out medical, psychological and other tendencies. They were told that the research was to study the psychological effects on prison life, the experiment took place in a mock prison environment within the university. The experiment was cut short because prisoners became demoralized and showed signs of stress, depression and others lost touch with reality. Guards behaved in authoritarian and aggressive way, some became sadistic. The research here showed that social situations have powerful effects on behavior. Researchers have used various forms of evidence that seem to indicate that personality is developed through an interaction between genetics and the environment therefore it would be wise to conclude that only a portion of a persons personality is inherited. Differing situations should be accounted for when comparing the results, to date it has been difficult to define what the exact ratio of heritability – environment is, research has shown heritability to be approximately 30%. References Introduction to Personality: Toward An Integration, Seventh Edition by Walter Mischel, Yuichi Shoda, and Ronald E. Smith. John Wiley Sons; 7th edition 10 Jul 2003

Shadows in Fifth Business :: Fifth Business

Shadows in Fifth Business    Incidences that occur in one's childhood tend to affect them possibly for the rest of the rest of their life.   This applies to the novel Fifth Business and the characters Dunstan Ramsey and Boy Staunton.   Throughout the lives of these characters Dunstan lives in the shadow of Boy due to feelings of guilt and responsibility as a result of one winter evening in the town of Deptford.   As Boy and Dunny grew up together they were each others best friends and also worst enemies, but they were on basically   equal terms in their childish trials of life.   This remained to be true until that winter day in Deptford when Mrs. Dempster was struck with a snowball that was meant for Dunny.   Since that point in time Dunny, being the more caring and excepting of responsibility for other peoples problems, of the two, has not lived up to par with the life of Boy Staunton.   Ever since the snowball accident Dunny has been preoccupied by worrying   over Mary Dempster, and now her son Paul.   At the age of sixteen the small town of Deptford becomes too much for Dunny to handle so he decides to drop out of secondary school and   join the Army.   Dunny needed a change in his life, something to get his mind off Mrs. Dempster and the guilt he felt for her.   Leading up to his departure to the War he never really saw much of Mary, mainly because Mr. Dempster told him to stay away, but also because every time him saw her he couldn't hold back feelings of guilt and remorse.   This troubled Dunny, much more then he would ever let on.   On the other hand, Boy was doing as well as ever, possibly due to the fact that he knew that much of the responsibility of Mary and Paul was securely on the shoulders of Dunny.  Ã‚   Dunny knew this as well but it was too late to do much about it except leave.   While Dunny was away at war, Boy was still finishing school and in the process of stealing Dunny's girl while he was away.   Boy and Dunstan had been competing for Leola all their life up until when Dunny left.   This loss for Dunstan could have been avoided if in fact he had not   accepted responsibility for the snowball incident he wouldn't have had to leave and therefore could have kept Leola.

Graduation Speech: The Important Things in Life -- Graduation Speech,

Well, I am supposed to give a speech, so sit back and enjoy the ride, hopefully it will not be too bumpy. I am sure all of us are really excited by now. You're probably thinking, "Yeah, we are finally out of here. We've survived all four years. It's time to party and move on in life." Yet, we are losing a great deal. We'll lose a lot of great teachers, we are giving up this small caring community, and in return we are moving to larger schools -- where we will be known by number rather than name. And we are splitting up. We are all going our own ways, and many of us will never see each other again. Yeah, we are losing a great deal, but we can't say we haven't gained anything because it just isn't true. We've gained knowledge, experience, responsibility, maturity, integrity and a diploma. These are all very important, but we have gained something much more important than all of these. We have gained a class ... friendship ... a sense of community. Throughout these last four years we have grown so tightly together that we have become one single identity -- the graduating class ...

An eye opener from an article about the black holocaust Essay

Reading Journal Week 2 Alt. Black Holocaust When Dr. Lewis mentioned this alternative reading to do, and warned us that it is very depressing, and basically told us to only read if we desire as much, I kind of took that as a challenge. Being competitive in nature, I always try to step above what people think I can handle. This article of the black holocaust, I will admit made me sort of regret that. I found tears coming out. There were many times I shook my head just thinking, â€Å"talk about the cruelness of humanity†! Those slaves skin may be black but the souls of those white men were much darker. One thing I found absolutely atrocious was the belief that black men had no soul. They would rape there men and women, and while that was morally unacceptable to act towards their fellow white men, it was completely acceptable to rape a black person because they had no soul anyway. If you raped a white woman, you could see the despair in there soul yet when you rape a black woman, all you see is a screaming black woman. To add to that, the fellow white crew of the ship blamed the Africans for the lustful behavior due to their nudity which they forced them to do. They claimed that they have rarely if at all, seen a naked white woman so they blamed the Africans because they saw plenty of them. Another thing that was absolutely sad and devastating was how they forced the blacks to rest. They had a choice to either lay down with less space above them than a person in a coffin or sit on the higher ends which had splinters and blood everywhere. It kind of reminded me of Jesus who supposedly died on the cross and while he was hung there was a nail at his feet he could stand on to relieve the pressure from his arms, but in price had to gravely hurt his feet. For these kinds of actions, I couldn’t blame those Africans for trying to jump ship and let the sharks eat them because what they were dealing with seemed like a fate worse than death. I would’ve attempted the same thing. I understand at this time, morals were different and it was acceptable to treat black skins the way they did, but with my way of thinking now, this was just painful to read. I would’ve had a much easier time reading the other stories but at the same time, I am glad I read this because it really hits me now how badly we treated our slaves in our early days. I read something close to this once called â€Å"The Narrative of Frederick Douglass†. I will definitely add this excerpt to my list of readings that have influenced my feelings on the cruelty of racism and slavery.

Business risk and risk assessment: Apple Essay

I. The Company’s Core Business Processes and Strategic Objectives The Company’s products can be divided into two main categories, personal computers and related products and portable digital music players and related products. Based on the annual report, the â€Å"Company designs, manufactures and markets† (Annual Report 2005 1) many variations of the products mentioned above. The more popular products of the Company include the â€Å"Macintosh line of desktop and notebook computers, the iPod digital music player, the Xserve G5 server and Xserve RAID storage products, a portfolio of consumer and professional software applications, the Mac OS X operating system, the iTunes Music Store, a portfolio of peripherals that support and enhance the Macintosh and iPod product lines, and a variety of other service and support offerings† (1). Design is mainly a concern of the Company’s research and development. Because the Company is in the technology industry, research and development is a crucial component of its operations. It is the manner by which the Company keeps its competitive advantage. In its annual report, the Company admitted that â€Å"the Company’s ability to compete successfully is heavily dependent upon its ability to ensure a continuing and timely flow of competitive products and technology to the marketplace† (14). As a corollary issue to research and development, creation, protection and acquisition of intellectual property rights are also a major concern for the Company. The Company is in possession of several patents and copyrights. On one hand, the Company is concerned with the protection of its patent, copyrights, trademarks and service marks worldwide. In the other, it must protect itself from infringing on others intellectual property rights. The Company does not only rely on its ability to create intellectual property, it also relies on those owned by third parties which are acquired through licensing agreements. Because the Company is engaged in producing technology year after year, the manufacture of the Company’s products may create complications. The Company manufactures personal computers and accessories, iPod digital music players and accessories and a variety of consumer and business software applications. The raw materials for these products are sourced elsewhere. There are certain key components that are sourced from one or limited outside source (Annual Report 2005 14). In 2005 and 2004, the Company experienced delays in relation to one of its products, the PowerPC G5 processors (14). This led to the non-availability of certain Apple products from the market (14). After this incident, the Company announced its intention to shift its Macintosh personal computers from PowerPC G5 and G4 processors to Intel Microprocessors (Apple to use Intel para. 1). This transition is expected to be fully implemented in 2007. The Company’s development of new products requires custom made raw materials that are initially single-sourced until the Company determines the need to develop new sources (Annual Report 2005 14). The manufacture of raw materials and the assembly of some of the Company’s products are made in several foreign countries by third party vendors. The Company’s marketing is done through the Company’s website, company-owned retail stores, direct selling by the Company’s sale force and third party wholesalers, resellers, and value added resellers. The Company’s main markets are usually in the following fields: education, business, creative and consumer market (Annual Report 2005 12). In 2005, the US education industry accounted for more than 12% of the Company’s net sales (12). The Company is not dependent on any single customer for its income. In fact, no single customer of the Company accounted for more than 10% of its sales for three succeeding fiscal years, 2003 to 2005 (12). The Company is divided into four reportable operating segments, America, Europe, Japan, and Retail. It also has an operating segment in Asia-Pacific. The three geographical segments mentioned above do not include retail. The Retail segment operates in the United States, Canada, United Kingdom, and Japan. (3) The Company intends to continue its substantial investment in research and development. The Company’s strategic plan includes the improvement of the Company’s existing products, as well as the development of new ones (7). The Company also believes in the capitalizing in the convergence of digital consumer products (7). This is in keeping with industry trend. For example, both the Company and Microsoft have patents that would improve or create wifi-sharing ability (wireless connectivity) in iPod, iPhone and Zune (Cheng para. 1). Zune, Micosoft’s digital music player, already has a wireless sharing capability which the iPod hopes to emulate. The new patent of the Company may also make it possible for the consumer to directly purchase media from a server through the iPod or iPhone (para 5 and 6). The Company also plans to continue to exploit the perceived advantages of the Company’s products. These advantages are â€Å"innovative industrial design, intuitive ease-of-use, and built-in networking, graphics and multimedia capabilities† (Annual Report 2005 2). Another shift in the Company’s product development is the shift to â€Å"a greener apple.† The Company announced its intention to continue to remove toxic waste from new products and aggressively recycle old products (Jobs). The Company claims that it is leading the industry’s efforts to create more environmentally responsible company and products. The Company plans to create more energy efficient products in the future (para. 29). The Company is not alone in this. Other companies also exerted efforts to show social and environmental awareness. Sometime in 2007, Google released a more energy saving â€Å"black screen† after a study showing that a blacks screen uses less electricity than a white one. As far as its marketing is concerned, the Company plans to expand the distribution of its products. In the past year it has focused on adding on to its direct selling capabilities and the improvement of its sales staff. The Company will continue this style by building more Company-owned store in high traffic locations (Annual Report 2005 8). It also aims to widen its consumer base by targeting first-time computer owners and those people who do not own a Macintosh computer (8). The Company also plans to continue building brand awareness by increasing investment in marketing and advertising as shown by the increase in selling expenses over the years. II. Business Risks Research and development is a major component of the Company’s business risk. It involve a significant amount of the Company’s resources, with research and development expenditures amounting to $534  million, $489  million, and $471  million in 2005, 2004, and 2003, respectively (Annual report 2005 13). The benefits are also contingent on several factors, including the ability of the Company to determine which products or innovations can be successfully developed, manufactured and marketed. There is always the risk of choosing the wrong innovation to focus resources on. The failure to produce marketable products regularly means loss of resources and market standing. Research and development also has a legal risks involved. The Company has admitted that because of the rapid change in technology and the pace by which new patents are being issued, â€Å"it is possible certain components of the Company’s products and business methods may unknowingly infringe existing patents of others† (15). Aside from suits relating to infringement of intellectual property rights, the Company is also facing various suits in relation to its products and a derivative suit filed by its shareholders involving unfair competition and false and misleading proxy statements. In 2006, the Company was placed under scrutiny due to stock option grants, some of which are issued to the Company’s CEO, Steve Jobs, in 1997 and 2001 (Iwata). There were allegations of stockholders that the grant was part of a â€Å"backdating scheme†, a scheme were it is made to appear that the options are transacted at a later date when the shares are valued lower (Apple comes under scrutiny). The investigation showed thousands of backdating grants including two made to CEO Jobs, the second of which did not observe the requirements for validity (Iwata). CEO Jobs was not held accountable for the irregularity of the grant. However, because of the irregularity in the stock options grants issued, the Company restated prior years’ financial statements. Because of these events, the Company admitted in its annual report (2006) the there is further risk of â€Å"litigation, regulatory proceedings and government enforcement actions† (21). The manufacturing of the Company’s products raises some special concerns. As stated above certain key components can only be obtained from a single or limited source (Annual Report 2005 13). Even key components that are not from a single or limited source are sometimes subject to â€Å"availability constraints and pricing pressures† (13). In facts, sometime in 2005 and 2004, the company already experienced delays in acquiring key components which led the Company to change one of the major components of one of its products. The Company admits that the loss of certain suppliers would have an adverse effect on the Company (14). Because of this, there is a risk that the Company will not be able to meet demands for the Company’s products or that the Company will incur delay in the delivery the products ordered by customers. The Company also relies on third parties to supply digital content in its iTunes stores and to develop certain software applications. The failure of third parties to supply digital content does not only affect the performance of iTune stores but also the dominant position of the Company’s digital music player. In the same manner, the failure of software developers to develop programs compatible with the Company’s computer platform due to bigger market for Windows and Linux will adversely affect the demand for the Company’s personal computers. The use of foreign third party vendors in the final assembly of the Company’s portable products and as suppliers of raw materials increases the Company’s risk of being adversely affected by political and economic conditions in these foreign countries. Political upheaval and economic crisis in foreign countries can affect suppliers’ ability to meet the Company’s demand. The Company faces cut throat competition on many of its products. In the advent of personal computers, the Company owns a significant chunk of the market. Over the years, the Company’s market share grew smaller and smaller. In July 2006, the Company’s market share is around 2.2% (Apple market share myth), a significant drop from its original market share. However, percentage figures do not account for the growth in the PC market since its birth in the 1980’s. The decline in the Company’s market share can also be attributed to the growth of numerous generic brands that are much cheaper than the Company’s Mac computers. The proliferation of â€Å"clones† led many companies to lower their prices and profit margin to gain a bigger market share. There is an on going price competition in the PC market, and the Company is striving to be competitive in this area. However, the Company’s business strategy seems to focus less in making cheaper PCs but more on developing products that appeal to its niche market, such as the creative market (Annual Report 2005 2). This strategy of the Company is a business risk because the limited market base makes it more vulnerable to economic factors. Decline in spending ability of one of its niche market can have a greater impact on the company than if it has diverse market. On the other hand, it removes the Company from the competition in market segments that are already saturated with other players. Some analysts believe that part of the upside of the Company’s strategy is that it has refused to compete in a market over which Microsoft already has a monopoly (Apple market share myth). Microsoft has acquired a monopoly in the industry by selling cheap PCs with expensive software or a system called â€Å"exclusive software bundling.† This makes it difficult for other companies to develop operating system’s that are competitive with Microsoft’s. The Company’s strategy in focusing on the improvement of what the consumers perceived as the functional and design advantages of the Macintosh platform opens the Company to the risk mentioned above but it also removes it from the competing in saturated markets. The digital music player market is expected to grow up to 286 million units in 2010 (Guza para.1). The Company’s own product, iPod, continues to dominate the market; however, many competitors are cropping up, challenging the Company’s dominant position. Analyst believes that the Company should not be complacent regarding its dominant position in the business since the digital music player market is young and has only penetrated a small portion of the market in the United States (Siklos). Although many competitors have tried to challenge the Companies and failed, the competition is not giving up. Competitor, Microsoft, came up with Zune, its own brand of digital music player that is compatible with Microsoft’s own on-line music store. Samsung, Sandisk and Creative have came out with products of their own. Software, hardware and on-line companies are working together to address technical difficulties in the initial launch of their own digital music players, and imp roving their services (Wingfield para. 4). There is a risk that the Company’s music related products may follow the road of its personal computers. III. Three Most Significant Financial Statement Accounts The three most significant financial statement accounts for the Company are research and development, inventory, and common stock. Research and development is significant because the Company is engaged in the production and marketing of technology. Not only is research and development expense significantly higher compared to other industry, it is also the cost which enables the Company to continue its existence. In the industry where the Company belongs, obsolescence happens very fast. If the Company fails to innovate, there will come a time that the Company itself will be obsolete since the consumers have switched to the more recently developed products. Many of the Company’s strategic plans are tied up with research and development, such as the plans to improve existing products and the move towards convergence of digital products. The plans of the company to improve and to add innovations to existing products will involve a significant amount of the Company’s resources. The amount of the company’s resources spent in research and development are expensed outright, except for the costs which are incurred after the innovation has been determined to be technologically feasible (Annual Report 2005 68). The failure of the Company to produce technologically feasible products may increase research and development expense, in the same manner that the success of developing technologically feasible products does not necessarily decrease research and development expense. If all the cost for development of the product was incurred before it was determined to be technologically feasible, all cost are expensed outright regardless of feasibility. Based on the Company’s financial statements, capitalization of research and development expense is minimal (77). Inventory is significant for the Company since its operations involved both manufacturing and retail. The Company’s inventory is subject to several business risks already discussed above. In relation to the supplies issue, the Company entered into long-term supply agreements with several companies which bound the Company to these suppliers until 2010. As part of the agreement, the Company is required to make prepayment amounting to $1.25 billion in the second quarter of 2006. (Annual Report 2005 91) Part of the Company’s objectives is to ensure a continuing and timely flow of competitive products and technology to the marketplace. The achievement of this objectives means that the Company’s inventory levels are always sufficient to meet demands for the Company’s products. This would also mean that the Company has successfully managed it inventory during the year. Proper management of inventory would result in a year end inventory level is not too high or to low. The Company’s common stock is significant for the year 2006 because of the discovered irregularities in the issuance of stock option grants issued in 1997 and 2001. These resulted in allegations of fraud and falsification of documents (Wearden para.4). The Company has already investigated the matter, and the result of such investigation has exonerated CEO Steve Jobs of any misconduct. However, restatements of prior years’ financial statements were made, including the common stock and other related accounts (para. 3). This account is not necessarily affected by the Company’s strategic objectives. The stock option grant issue itself affected the performance of the Company’s stock in the market and even raised the issue of possibly delisting from NASDAQ, but which turned out be without bases. IV. Management Assertions The management assertions relevant to research and development expense are completeness, accuracy, cut-off and classification. Completeness is a relevant management assertion because research and development is an expense account, and so, there is a risk that the Company will not include all research and development cost incurred in order to increase the net income for the year. Accuracy is relevant because there is a risk that transactions relating to this account are not recorded properly, resulting in under or over statement of the expense account and, in effect, of net income for the fiscal year. Cut-off is relevant for research and development so that there is proper matching of the expense with the revenue earned during the fiscal year. Failure to record expense in the correct accounting period can also result to over or under statement of the net income for the year. Classification is also a relevant for research and development because there is a risk that the Company will capitalize research and development improperly resulting in the over statement of net income for the year and inflating the Company’s asset even if there are no expected future benefits. Failure to record the amount in the proper account can also mean that there is no matching of income and expense. The management assertions relevant to inventory are existence, valuation and rights. Existence is a relevant management assertion because there is a risk that the Company will record assets that are not there in order to make the financial conditions of the Company look better to investors. The recording of assets that do not exist can also mean failure to record expenses which, in effect, results to overstatement of net income. Valuation is also a relevant because there is a risk that the Company may overstate the value of the asset to improve the financial statement of the Company. In either management assertions, there is a risk of management inflating the asset of the Company usually to improve the stockholders’ equity of the Company. Management assertions as to rights over inventory is also relevant because there is a risk that the Company included in its assets, inventories whose ownership has already passed to another, to improve the financial statements of the Company. The management assertions relevant to common stock are existence and valuation. Existence is a relevant management assertion because there is a risk that the Company records stocks which are not actually subscribed and issued or issues stock for which no consideration was actually received by the Company, also called watered stocks. Valuation is also relevant because there is a risk that the Company will over value the property received in consideration for the stocks issued, particularly if the stock is issued for consideration other than cash, making it appear that the Company is better off than it actually is. Both management assertions can be used by the Company to lure investors to invest in the Company under false pretenses. Although wrong management assertions can be a result of other causes that are not deliberate on the part of management, such as mistakes. The assertions mentioned above are relevant to those accounts because there is the additional risk of deliberate misstatement on the part of management. V. Environmental Risks There is a low inherent, control and detection risk in management assertions of completeness and accuracy of the research and development expense based on the Company’s conservative approach in recording research and development, as well as, the relative simplicity of identifying and recording research and development expense. On the other hand, the management assertion relating to the cut-off of research and development expense is assessed as having high inherent, control and detection risk because of the lack of sufficient data regarding the Companies processes and controls relating to this account. Because the risks mentioned above are assessed at maximum, more substantial test shall be performed to decrease audit risk. There is a high inherent risk in the classification of research and development expense because of the difficulty of determining technological feasibility. The determination of Technological feasibility can be extremely subjective. On the other hand, there is low control and detection risk in the classification of research and development expense because based on the Company’s past practices, the Company is very conservative in capitalizing research and development expenses. The percentage of research and development expense capitalized by the Company is very small compared to the research and development expense incurred every year. It is the Company’s policy to record all development cost incurred before determination of technological feasibility as expense, and the determination of technological feasibility is usually done after a large portion of the cost of development has been incurred so that only a small portion of the cost is actually capitalized and amortized. The inherent, control and detection risk is high for all assertions related to inventory because the operations of the Company is complex and international. The final assemblies of some of the Company’s products which are performed by the Company itself are in different locations outside the United States. There are also final assemblies of the Company products that are performed by third parties in different countries in Asia. The Company also takes advantage of several ways of marketing its products. It uses company-owned stores, direct selling, third party sellers and on-line selling. These make it extremely difficult to keep track of the movement of the inventory and to determine when ownership over the inventory change hands. The inherent risk is assessed as high for the management assertion of existence and valuation of common stock. This is because of the investigation which the Company itself initiated in relation to its stock options grant. The investigation caused the Company to adjust its income from prior years amounting to $84 million. The Company also has stock-based compensation plans consisting of stock options grants and stock purchase plans (Annual Report 2005 88) which calls for complicated computations. The control and detection risk is assessed as low for the management assertion of existence and valuation of common stock because of the Company’s efforts to investigate the matter as soon as the problem arose. It was the Company itself that announced the existence of irregularities in the issuance of its stock options grant. The Company has put in placed control mechanisms to address the matter. Moreover, records of the investigation conducted can help the auditor minimize detection risk.

Culture, Goal-Oriented Communication (Leadership)

Culture, Goal-Oriented Communication (Leadership), and A Fast Growing Organization: the case of Samsung Electronics Hur, Chulboo, Professor Emeritus, Myongji University, Seoul, Korea and Adjunct Professor of Business Management, Yanbian University of Science and Technology, Yianji, Jilin, China Mobile phone 010-9872-7492, e-mail: [email  protected] com and [email  protected] ac. kr Summary In response to the globalization and rapid economic growth of China, the Korean economy has transformed itself.A few Korean firms, spearheaded by Samsung Electronics, have successfully driven the economy, even if the Korean economy has difficulty in the ‘nut cracker’ situation. The success of Samsung Electronics has been attributed to the strategies of ‘selection and concentration,’ ‘successful restructuring following the IMF crisis,’ ‘long-term vision and unprecedented risk-taking strategy,’ ‘speed management,’ ‘world class brain management’ and ‘successful benchmarking of both Japanese and American management,’ among others. But in regard to Samsung’s strategies, cogent questions need to be examined. Associated essay: Pragmatism Over PrincipleFor example, would any Korean firm be able to apply the same strategies as used by Samsung Electronics, and produce the same success? No one could confidently say yes to this question. Samsung Electronics has dramatically achieved a successful transformation between 1987 and 1999. We argue that this is the result of Mr. Lee, Kun Hee (the ex-CEO of Samsung Group)’s strategic learning leadership and its resultant paradigm shift, and that this can be applied to the emergence phenomenon of complexity theory that provides the momentum of evolution of the corporate cultural and/or core competence.The paper explores the dynamic process of this phenomenon. 1 1. Introduction: Korean Economy and Samsung Electronics After three decades of rapid industrial growth, in itself a dramatic transformation from the poverty-stricken agricultural economy of 1961, the Korean industries became exposed to the predicament of borderless competition as well as the threat of the formidable super-speed chaser, the Chinese economy.In the time between Korea’s acceptance as a member of the WTO in 1992 and the IMF Control of the Korean Economy in December 1997, pessimism was high among the Korean leading circles regarding the future of the Korean firms and the economy. Nut Cracker Theory of the Korean Economy (Maekyung Booze Allen & Hamilton Report, July 1997) Japan 10. 22 2. 8845, 4,029, 3. 5696 Korea 1 1 1 1 China 2. 35, 5. 7994, 6. 09, 5. 8399 2000 World Bank estimated GDP ratio in black color 2007 IMF estimated GDP ratio in Red color 2007 US CIA estimated PPP adjusted GDP ratio in blue color 2000 World Bank estimated PPP adjusted GDP ratio in violet color The figures have been corrected in this diagram from the author’s 2004 article But miraculously, the Korean economy has partly escaped the â€Å"nut cracker situation,† thanks to a few large firms spearheaded by Samsung Electronics. For example, three Korean firms were selected in the Fortune 100 companies in 2006. They were Samsung Electronics, LG, and Hyundai Motors. But this year, Samsung Electronics was listed as the only Korean firm with US$92. 26 billion in sales in the Forbes 100. It 2 is ranked 6th among Asian firms, following Toyota, PetroChina, Mitsubishi, UF Financial, and Bank of China.Samsung electronics ranked 3rd in the Info Tech 100, in the 2007 Businessweek scoreboard, following AT&T and Hewlett Packard. Four Chaebol groups were responsible for 48% of the country’s exports, 49% of the Seoul stock market, and 42% of GDP based on sales in 2004. And in 2008,10 major export products from Chaebol groups account for 61. 1% of the nation’s total export (ChoongAng Daily, Feb. , 6, 2008). The Korean Economy Pulled by 4 Chaebol Groups ChoongAng Daily, April 29, 2004 The major Korean firms exhibiting global competitiveness are centered on the following industries: semiconductors/ TFT-LCD, mobile phones, petrochemical roducts, shipbuilding and small- and medium-sized automobiles. Businessweek (July, 2007), in cooperation with the English Interbrand Co. , reported that 3 Korean firms were included in the 100 global top brands value. They are Samsung Electronics, (21 th place); Hyundai 72nd place); and LG Electronics (97th place). Samsung’s brand value increased 4% from the previous year’s 15 billion dollars to 16. 4 billion dollars, but lost one place in ranking. Businessweek reported that Samsung Electronics is 3rd in Asia, after Toyota and Honda.Samsung is superb in LCD and high capacity memory chips, but suffered loss because it failed to enter into the low price cellular phone market in the year 2006. Hyundai Motors attained success by jumping to 72nd position from 2005’s 80th through explicit brand strategies and aggressive strategies in the overseas market, and thus 3 became the 8th global auto maker. LG also ascended 14% by improving brand value of 400 million dollars. USA captu red 1st through 5th places, and registered 52 firms: Germany, 10; France 9, Japan, 8; England 6; Swiss 4; Korea, 3; and Finland, Italy.Sweden, Spain, and Bermuda each listed 1 firm in the 100 brand powers. BusinessWeek July 2007, based on the Interbrand Co. , England Research data. 2007 Businessweek Top 100 Global Brands Scoreboard 2007 2006 Change Brand Name 2007 Coca-Cola Microsoft IBM GE Nokia Toyota Intel Honda Samsung E. Sony Hyundai Brand Value $m 2007 65,324 58,709 57,091 51,569 33,696 32,070 30,954 17,998 16,853 12,907 4,453 Brand Value $m 2006 67,000 56,926 56,201 48,907 30,131 27,941 32,319 17,049 16,169 11,695 4,078 Parent Company Coca-Cola Microsoft IBM GE Nokia Toyota Intel Honda Motor Samsung Sony Hyundai Motor MatsushitaBrand Brand in Rank Rank 1 2 3 4 5 6 7 19 21 25 72 1 2 3 4 6 7 5 19 20 26 75 Country Rank 0 0 0 0 1 1 -2 0 -1 1 3 U. S. U. S. U. S. U. S. FINLAND JAPAN U. S. JAPAN S. KOREA JAPAN S. KOREA 78 77 -1 Panasonic 4,135 3,977 electric Industrial JAPAN 92 97 9 8 92 94 90 0 -3 -8 Lexus LG Nissan 3,354 3,100 3,072 3,070 3,010 3,108 Toyota Motor LG Nissan Motor JAPAN S. KOREA JAPAN Three years earlier in 2004, Businessweek (August 9~16, 2004) listed only Samsung Electronics as the sole Korean firm in the list of 100 global brands, and also placed the firm in 4th place in the global top 5 brands (world ranking was 21st).The Weekly also published a special edition on the Samsung brand (November 29, 2004) and reported that Samsung’s competitive edge came from cost reduction through innovation and world class industrial designers who enabled the firm to capture five world class 4 design prizes in 2004. The firm had also won over 100 design prizes between 2000 and 2004. Samsung Electronics ran her own innovative design institute, and its designers took lectures directly from IDEO, the top class US design company, and from faculty members of a US design school located in Pasadena, California.The number of the firm’s designers increas ed from 170 in 2000 to 480 in 2004, accordingly. In the following table, the 2008 Forbes global 2000 big companies are reclassified according to country. Reflecting unfavorable world trade, there are signs of setback for the firms of traditional trading countries like Korea and Japan in profit ratio, but one can notice an increase in the number of firms in oil exporting countries and BRIC countries. For example, in terms of sales volume, Japan had 87 firms and South Korea had 24 firms in the 2007 Fortune 500, as oppose to France’s 38, Germany’s 37, and Great Britain’s 33 firms. 008 Forbes 100, 500 and 2000 Large Companies* Countries USA France Germany Great Britain Japan China Swiss Canada Spain Italy Netherland Brazil Australia Belgium South Korea Russia Norway Finland Luxemberg Panama 100, 500, 2,000 29, 165, 590 9, 32, 67 9, 26, 59 8, 34, 120 7, 47, 260 5+1, 12+7, 70+39** 5, 11, 37 4, 20, 59 3, 13, 28 3, 10, 37 3, 10, 24 3, 7, 34 2, 12, 50 2, 3, 12 1, 12, 52 1, 9, 29 1, 5, 14 1, 3, 12 1, 1, 8 1, 1, 2 Class I II III 5 Sweden India Taiwan Singapore Ireland Bermuda South Africa Mexico Turkey Austria Greece Saudi Arabia Portugal Denmark Thailand Israel Cayman Islands Czech Republic 0, 10, 29 0. , 48 0, 4, 41 0, 4, 18 0, 4, 10 0, 3, 25 0. 3, 17 0, 3, 16 0, 3, 14 0, 3, 13 0, 3, 12 0, 2, 11 0, 2, 10 0, 2, 9 0, 1, 14 0. 1, 10 0, 1, 4 0, 1, 1 IV 6 Malaysia United Arab Emirates Kuwait Chile Indonesia Iceland Poland Qatar Egypt New Zealand Hungary Parkistan Philippines Peru Columbia Morocco Barain Jordan Liberia Channel Islands 0, 0, 15 0, 0, 11 0, 0, 7 0, 0, 7 0, 0, 5 0, 0, 4 0, 0, 4 0, 0, 4 0, 0, 3 0. 0, 2 0. 0, 2 0, 0, 2 0, 0, 2 0, 0, 2 0, 0, 2 0, 0, 2 0, 0, 2 0, 0, 1 0, 0, 1 0, 0, 1 V *The global 2000 by Forbes. com, April 2, The Forbes 500 and 2000 figures include Forbes 100 and 500 figures respectively. *The Hong Kong figures were added to the Chinese figures. Samsung Electronics has maintained its position as a leader in semiconductors for 12 years after seizing first place in the global memory semiconductor chip sector with the introduction of the first 256-megabyte D RAM chip in 1994. The firm has been the world leader in the 8 hitec products such as D RAM, 28. 7%; S Ram, 33. 3%; Flash Memory, 30. 7%; TFT-LCD, 20. 5%; Display Driver Chips; 20. 5%; Monitor, 15. 2%; digital TV sets, 10. 6%; and Mobile Phones, 14. 3% (2 nd place after Nokia, beating Motolora in 2006). The Group, in total, has 25 world best products.The firm has also been the number one exporter in Korea for 12 years since 1994. In 2004, Samsung Electronics has recorded W110 trillion in accumulated sales and W29 trillion in profits, clearing all the loss accumulated since 1973 when the firm first entered the semiconductor industry. In the entire semiconductor industry, including non-memory chip sectors, the firm is the world's second largest chip producer following Intel, the 7 world leader. The Samsung Group contributes 21% of the nation’s expor ts; 20% of the entire stock market; and in sales volume, 18% of the country’s GDP.As of 2005, Samsung has 23,000 researchers with over 2,400 doctoral degree holders spending an annual research fund of 4. 7 billion dollars. In 2000, Samsung ranked 6th in U. S. A. patent right applications. During 2005 and 2006, Samsung placed 5th. and aspires to be in the top 3 by the year 2007. (Lee, Chae Yoon, 2006) Samsung Electronics’ revenue was over 92. 26 billion dollars last year, but the firm recorded a 10. 3 billion dollar net profit in 2004, the 7th largest position among 9 world 10 billionaire firms. This surprised many Japanese opinion leaders, recalling the imilar phenomenon in 1999-2001, when a spectacular performance of net profit amounted to 120 billion won from semiconductors and mobile phones, at a time when almost all world leaders of semiconductor manufacturers recorded red ink (with the exception of GE, IBM, and Nokia. ) A bad period for chip producers worldwide, m any leading semiconductor manufacturers closed down their production lines. The number of worldwide semiconductor manufacturers has declined from 22 in 1998 to 12 since 2004, including such famous IT leaders like Toshiba, Motorola, and Fujitsu.Samsung Electronics faced some difficulty in mobile phones in 2006, but it improved in 2007, as there were some progress in the mobile communication services. Samsung Electronics agreed to begin 3rd generation WiBro commercial services across the United States on a nationwide basis with the service provider Sprint and Nextel, starting in 2008. WiBro is a wireless high-speed Internet technology that enables the transmission of data anytime, anywhere, even within vehicles moving faster than 100 kilometers (62 miles) per hour or on mountaintops.The connection speed is even faster than a fixed-line Internet connection. In addition, Samsung Electronics has recently announced the development of the 4th generation WiBro technology which is expected t o operate five times faster than the presently available 3rd generation WiBro system. Korea's WiBro technology, also known as mobile WiMAX, is the result of three decades of continuous research. As it was solely developed in Korea, it is potentially far more lucrative than CDMA had been. The project was a product of collaboration between the Samsung Electronic research team and the governmental research lab 8 nder the governmental policy led by Minister Chin, Dae Jae, former President of Samsung Electronics, all under the influence of Samsung corporate culture, exemplified by: â€Å"look for our next lines of business, ten years ahead †¦Ã¢â‚¬  The story of Korea's advance in telecommunications began in the 1970s, when the mechanical national telephone system reached a saturation point. To resolve the problem, the Korean government decided in 1976 to develop Korea's own time division exchange, or TDX, a form of electronic operator. With 1,060 researchers working on the project , Korea became the 10th country in the world to develop her own TDX.At the helm of this project, part of his national development plans, was Park, Jung-hee. President Park, Jung-hee, a self-educated economist, was the nation’s top class expert on the history of Japanese modernization since Meiji Restoration (1869). He laid the ground of the Korean industrial development in 1961, following the Japanese track. He also indirectly influenced the growth of the Korean Chaebuls and their technological development/learning processes. In 1989, the Korean government developed the TDX-10, together with the governmental research intitutes, the researchers in the Chaebol groups, and from the universities.The outcome was a more sophisticated digital operator system, and as a result, Korea could afford to export the technology, although only a half of the parts used in the TDX were locally produced. However, all stages of the TDX-10, from design to software, were devised and produced in Kor ea. Samsung Electronics played a major part in the developmental procecess, but we must also note that Samsung alone started to build up global capabilities of semiconductor manufacturing all by herself as early as 1973. The foundation of Korea's subsequent success in mobile phones was laid in 993, when Korea became the first country in the world to commercialize the code division multiple access technology, or CDMA, conceptually developed in the laboratory level by a small U. S. firm, Qualcomm. Unlike the time division multiple access, or TDMA, system used in Europe, which assigned a specific frequency for each user, CDMA allowed multiple subscribers to a single frequency. The CDMA was adopted by Korea because of low connection error compared to other technology in the Korean situation of high population density, of mountainous areas and multiple concentrations of high rise building blocks. Expectations were high with the hope that the Korean firms would turn huge profits from the Korean’s share of CDMA technology improvement, as countries such as China, India, and Brazil decided to adopt the system. But with Qualcomm demanding high royalty payments on CDMA source technology, its price competitiveness soon eroded. (The Korean firms have paid over 1 trillion won or $1 billion in royalty payments to Qualcomm, the CDMA source technology holder up to date. )Moreover, Europe looked to nurture her own telecommunications companies with the development of the Global System for Mobile Communication, or GSM. The adoption of this updated version of TDMA meant Korean firms were further handicapped because the Korean firms were not able to sell CDMA technology to one of the world's biggest cellular phone markets. In short, Korea found success by copying foreign telecommunications technology in the 1980s; and by the 1990s, Korea was commercializing foreign developed technology but still had a long way to go until technological independence. (ChoongAng Daily Aug. 10, 2006)Future of Samsung Technological Capabilities: In close coordination with Government, Chaebol, and university research instututes, Korea developed a new generation of mobile phone wireless Internet technology. WiBro system, the new technology, is leading the rest of the world by years ahead. It is accepted as one of the standards by the World electronic organizations. Samsung Electronics has made trial-runs with Brazil, Venezuela, Croatia, and Saudi Arabia, and has begun entry into the US market, while telecommunication companies in Japan, Britain, France, and Italy, are showing keen interest in the technology.WiBro shall be the fourth generation technology, if the CDMA technology used today is considered as the third generation. According to the agreement with Sprint, the US partner, Samsung Electronics will provide base stations, handsets, and chipsets. About 100 small- and medium-sized business firms will participate as well. Samsung estimates that the deal will produce 33 t rillion won and create 270,000 new jobs. (ChoongAng Daily Aug. 9, 2006) Samsung Electronics has made successive technological breakthroughs, most recently in the world's first 50-gigabit NAND flash memory chip, employing a new method called the charge trap flash, or CTF.The firm is a world leader today in LCD TV, 10 mobile phone parts, and various memory chips. The CFT technology provides the foundation for entering the tera-bit [1,000-gigabit] age after 2010. Dr. Hwang, Chang-kyu, president in charge of Samsung Electronics R & D Division added that Samsung's semiconductor division was different from its competitors in terms of its dual investment in facilities as well as in research and development. â€Å"This year, we spent 2. 8 trillion won ($2. 9 billion) on semiconductor research and development.For CTF technology, we started to develop it five years ago and created an independent developing team three years ago. We have 30 to 40 of these development teams, so imagine what kin d of developments we can achieve in 5 to 10 years,† he said. He had rosy predictions for the DRAM and graphic DDR DRAM markets, saying they were diversifying and could lead to a supply shortage. â€Å"Even now, Samsung is only able to meet 70 percent of the demand. Prices shall be good until 2009,† he said. â€Å"Samsung currently occupies 50 to 60 percent of the graphic DDR market and will provide 100 percent of the chips for the Nintendo game players,† he added.Samsung Electronics developed the first 256-megabit NAND flash memory in 1999, and ever since, the company has doubled the capacity of its semiconductor on a yearly basis. The industry has even dubbed this phenomenon as â€Å"Hwang's Law,† an allusion to Moore's Law, which states that the processing power of chips will double every 18 months. NAND flash memory chips are mostly used to store data in small devices such as digital cameras and music players. The chip Samsung presented was made using 4 0nano technology; last year, chips were made using 50-nano technology. The difference allows more semiconductors to be produced from each wafer.Forty nanometers is 3,000 times thinner than a human hair. It is expected that the new NANO chip would create new Flash memory chip demand worth $60. 6 billion by the year 2016 when the technology becomes fully commercial in 2008 2. Previous Research works on the Samsung Transformation Samsung Electronic’s evolution from a fledgling company within a developing nation to a powerhouse global leader and technological innovator has attracted much attention from academicians and journalists, and as a result, numerous articles have documented the transformation, mostly from Samsung in-house researchers, journalists, and some 1 Japanese observers and scholars, as well as a few Korean scholars. Senior researcher Chang, SangSoo from Samsung Economic Research Institute (SERI, August, 2005) observed that the Samsung Group has gone through four s tages of growth in an accelerated pace, owing to the superb leadership of the CEO and the inspiring corporate culture in which the upper management work under a shared value system, exemplified by: â€Å"a single mind towards a single goal. † His four growth stages are as follows: 1) Inauguration of the enterprise and foundation of the system between 1938 to late 1950’s: Included in this period were the turmoil and confusion of the Liberation (1945), the Independence (1948), and the Korean War (1950 -1953). Samsung has started the first Japanese-style public new employee recruit examination in Korean history as early as in 1957. (Recruitment of recent college graduates based on general examinations—in effect, an IQ test. ) (2) Growth from a small- and medium-sized firm to one of the large firms in Korea. It had elements of the early stages of a business group.It was the period of General Park, Chung-hee’s Military Coup and the launching of successive five -year economic development plans between late ‘50’s to mid ‘60’s. (3) Ascendance to the Korean top enterprise between late ‘60’s to late ‘80’s. This period includes the 6th Five-Year Economic Development Plan and the 1988 Seoul Olympic Games. (4) Ascendance to the global top Enterprise between late ‘80’s to now. This period started with the transfer of the leadership from the first generation group chairmanship to the second generation group chairmanship, thereby marking â€Å"new management. There were crises, rising from the Korean WTO participation, and turmoil caused by the IMF crisis, as well as the 2002 Korea-Japan World Cup. Chang believes that the quantum leap resulted from the superb human resources management and the overall strategies of the Samsung group. Samsung Electronics, the forerunner of the Samsung group, has gone through a paradigm shift of personnel management in the following ways: 1. 2. Growth s trategy based on mass production and economy of scale centering on seniority pay system until 1996. Survival strategies under IMF crisis–employing a merit system of individually 12 ifferentiated salaries between 1998 and 1999. 3. Core competence based personnel administration of up-grading overseas personnel and team based compensation system adopting profit sharing and stock option programs between 2000 and 2002. 4. Further strengthening of the core competence based personnel administration aiming at solidifying the pool of the global top grade human resources. And the evolution of the human resources management has been reinforced by: (1) The regional expert system for the employees to get on-the-spot training for one year. Over 2800 persons have gone through the program between 1990 and 2004. 2) Through Samsung MBA program since 1995, the firm conferred the master degree to some 460 persons. The program is divided into Socio-MBA and Techno-MBA programs. (3) Under the overs eas genius program, over 100 full scholarship grants were awarded to top 5% level students enrolled in India, China, and Russian top universities since 1995. (4) An in-house semiconductor college was established for 30 graduates with BS degrees, 20 graduates with masters degrees, and 3 graduates with doctoral degrees. (5) An in-house manufacturing technology college was set up for the retraining of 100 overseas engineers. 6) Five to six week courses for the functional expertise educational programs were set up to provide training for some 700 specialists in the fields of finance, planning, procurement, marketing, and personnel administration. Autographic writer Hong, Ha Sang (2005) sketched 16 Samsung top managers, both in Korean and Japanese. He emphasized, similar to the opinions of many Japanese journalists, that the troika leading the Samsung transformation consisted of (1) Chaiman Lee, Kun Hee, (2) a group of professional managers, and (3) the Center for Structural Realignment. Cho, Tu Sup, Professor of Yokohama National University and former Professor of Nagoya University in Japan with Yoon, Chong-sup, his Ph. D. student and a researcher of SERI, wrote a book in Japan titled, â€Å"Samsung strategy to technological capability – technological learning process towards global business,† based on Yoon’s dissertation 13 (2004). Their research is centered on a single business entity, an organic cluster comprised of four Samsung companies. They are: Samsung Electronics, Samsung SDI, Samsung Corning, and Samsung Electricity.And their classification of the technological learning process includes the following four stages: (1) Absorption stage: It took place in the early 1970’s in a declining industry of black and white TVs, tuners, cathodes, tubes, DY and FBT. Samsung relied on a simple assembly line technology of joint venture partners, such as Sanyo, NEC, and Corning. But Samsung also intensified its technological absorption, having i ts engineers attempt to reverse-engineer beyond the level of formal technological cooperation by penetrating into the tacit knowledge behind the explicit knowledge.The firm implemented strategies of producing the parts domestically rather than simply relying on the importation of parts from partner companies. Samsung Electronics also established the vertical integration of the electronic products, even starting to export black and white TV sets to Japan on OEM basis. Depended on the Japanese technology. (2) Emulation stage: It started in the late 70’s as it evolved into color TV set assembly. Samsung had developed some level of maturity in technological capability through reverse-engineering. And as a result, Samsung could take ver some of the decision power of the joint ventures. (3) Improvement stage: It took place in ‘80’s, a rapid growth stage for Samsung technology in the area of large size flat panel TV including large size CPT, CTD, and CRT. Samsung became self-sufficient in designing numerous models and developed mass production technology. The firm could export plants and compete with overseas manufactures of color TV sets with its own R&D division. Samsung diversified its products including the development of an overseas sales network. (4) Innovation stage. The ‘90’s and beyond marks the development of high efinition TV and digital TV. Samsung solely developed TVs of an original concept, such as thin TV sets. Samsung could enjoy the freedom of cross licensing, strategic alliance, and it could export products on her own brand, through her own network of overseas production bases. The book does not deal with semiconductor technology capability building, because Samsung had to build the capability all alone, as no advanced nations were willing to provide assistance in the sensitive area. However, the corporate culture of strategic 14 learning has been preserved and documented. When Korean technological and ducational cap abilities were poorer in comparison to that of advanced nations, Samsung’s intense in-house higher educational system continued to benchmark themselves against the GE in-house educational system, and Lee, Kun Hee’s â€Å"genius management† provided many effective solutions. Professor Kim Shin proposed a strategic model of Samsung in comparison with Toyota Motors. (June, 2003. Japan Korea Association of International Management, Tokyo. ) Samsung Electronics World rank 3rd in IT, Fortune ranking 115th and Financial Times, 67 2002 records th Toyota Motors 3rd in Auto, Fortune ranking 10 h Sales, 40. 5 billion; Net profit 7. 25 bil. (Won) 14. 5% of total South Korean export Sales, 16 billion; Net profit, 1. 4 bil (Yen) Management strength Superior adaptation motivation human to resources, change, high speedy work Positive adaptation to change, Rational management based on strong community spirit JIT inventory management Unique management concept Digital convergence Production mode Production of multiple products in small quantity Production of multiple products in small quantity Japan is in trouble but Toyota is an exception Corporate image Digital best StrategyGlobal HRM, increase the number of the world best products and social Globalization, Concentration on and sustained cost reduction R&D friendliness Chang, Se-Jin (2008) also compares Sony and Samsung, the winners of both analogue electronics and digital electronics centering on strategies and HRM. Journalist/writer Lee, Chae Yoon (2006) compared Samsung and Toyota in a similar manner: He observed that Toyota benchmarked Ford to overcome the adverse productivity rate of 8 to 1 as early as 1935, and again in 1949, and, in that process, Toyota developed what is known as the Toyota Production System, or Just In Time 5 (JIT) and Kanbang system (zero inventory), all contributing to the â€Å"Toyota Way. † He also observed that since 1987, Samsung has benchmarked GE and Toyota in the de velopment of world best products, speedy decision making, and R&D and Market strategies. A senior consultant and an expert on the Korean industry, Midarai Hizami ( ) from the Nomura Research Institute of Japan observed that the strength of the Korean business system reform lies in the efficacy of the Samsung Electronics’ decision making mechanism, which was lacking in the Japanese firms. (2005) He observed that Mr.Lee Kun Hee, in power, was making important decisions, and the system of external board members and board of directors was nominal in the corporate governance. He summarized that the uniqueness of Samsung Electronics was due to (1) the corporate chairman’s unique ability for judgment and leadership, (2) existence of a corporate strategic center called the Center of Structural Realignment, (3) delegation of power to professional managers and their compensation system, and (4) business projects based on strategic marketing viewpoint. Finally Midarai proposed th at the Japanese company reform planners had to be mindful of the Samsung system.A business consultant and Chairman of Japan Debate Association, Kitaoka, Doshiaki (? ), published a book titled â€Å"I am afraid of Samsung† documenting a year long debate series on the threat of Samsung and how the Japanese firms could roll back. He concluded that Mr. Lee Kun Hee was a genius, who had an exceptional gift in both technology and management, and who would concentrate solely on long-range strategic research to command outstanding think tanks and watch dogs called the Strategic Realignment Center and the Samsung Economic Research Institute.He also argued that, with Mr. Lee’s long-range strategic view, swift decision making, and enormous scale of resources allocation, Samsung could have overrun all the world top class giants of the Japanese electronic firms when the IT bubble collapsed in 2002. He felt that the Japanese CEOs were handicapped because they would stay in their po sitions for a relatively short term (2-3 years), while Mr. Lee, Kun Hee could stay in his office for life, thereby able to formulate long-range strategies for Samsung.He argued that the Koreans were so dogged that they were posing a potential threat to the future of the Japanese firms’. 16 Hasekawa, Tanashi ( ), management professor of Kyotokakuen University, contributed an article to Nikkei Business Monthly Magazine and commented that the Samsung quantum jump from Korea’s best to global leader was dependent solely on Mr. Lee Kun Hee’s leadership. (July 11, 2006) He observed that when the global IT bubble collapsed in 2000, Samsung surpassed the poorly performing Japanese electronic firms including Sony, and became a global IT power.In the process, Mr. Lee’s â€Å"New Management† became the leading vehicle of the transformation process. According to Dr. Hasekawa, ex-CEO Lee Kun Hee. lead the Samsung innovation even before the Korean economy was cru shed by the 1997 liquidity crisis, by taking the shareholders seriously, putting emphases on the transparency of management and accounting, personnel management based on ability, and the introduction of an annual salary system. In addition, he observed that the Center for Strategic Realignment, in cooperation with Mr.Lee Kun Hee and the professional managers, played key roles in information gathering, sense-making, and planning in an organic manner to effectively operate the overall business. An example can be found in the merging of the semiconductor and telecommunication business units. The decision to select and concentrate on three major areas, namely electricity-electronics, finance-trading, and service, has provided the basis for the Samsung jump into a position of global power. 3. DiscussionThe points of Chang, Sang Soo’s (SERI, August, 2005) four stages of growth, the jump from the Korean top to the global top based on the superb leadership of ex-CEO Lee Kun Hee and t he superb corporate culture of upper managements’ shared value, exemplified by â€Å"a single mind towards a single goal,† is well understood in a post facto analysis. But his proposal of a superb human resources management, outstanding educational system, and retraining systems can be better understood as an end result of the strategic means rather than as the actual cause of the transformation.After all, most of the leading global firms of Japan, USA, and Korea share similar characteristics with Samsung. Nonetheless, it is possible that Samsung has simply benchmarked itself against these rival companies, surpassing them even, in regards to these specific factors. Although Chang, Sang Soo’s proposal could be understood as a occurrence of novelty, with a serendiptious effect resulting from its organizational development techniques. However, Samsung’s transformation has not been a transient phenomenon. 7 In fact, Kim, Chang and Lee,s comparson of strategei s and HRM is not sufficient to explain the rapid change processes of Samsung. And many writers make a point to emphasize the rapid and timely decisions made by Lee, Kun Hee in regards to the speedy growth process, as well the leadership undeterred by outside inteference. Samsung, at its inception under the leadership of Mr. Lee, Byung Chul (founder and the first CEO of the Group), had been an ardent follower of Japanese Management. Mr.Lee received his education from Waseda University in Japan before WWII, and was famous for his annual â€Å"Tokyo Conceptualization:† He would stay in Tokyo at the beginning of every year in order to learn firsthand the forecasts of the coming year as made by Japanese journalists and economists through TV and mass communication media. He also had a Japanese girl friend in Tokyo. Also, he carefully studied the Japanese government’s new year economic plans and new year strategies for major Japanese corporations.He would personally follow th rough this information with Japanese experts and leading Japanese businessman friends. He, then, would collect necessary books and articles and return to Korea to encourage his top managers to read the material before formulating each year’s strategies and planning for the entire Samsung group. In addition, they also examined the forecasts made by the Korean experts. Mr. Lee, Byung Chul was not only the first generation CEO for Samsung but also one of the pioneers of the contemporary businessmen of Korea.Partly we can state that Samsung Group is an outcome of the Korean government’s modernization effort to transform the economy from one of the world’s poorest agricultural economy to an advanced industrial economy under President Park, Jung Hee between 1961 to 1979. However Samsung had been a forerunner of a small group of successful large corporations who quickly grew to keep pace with the rapid growth of the national economy. It was well known that President Pa rk, Jung Hee, the architect of the Korean economic miracle, had thoroughly studied and became one of the Korean op level experts on the Japanese industrialization history since the Meiji Restoration. But General Park was not particularly favorable towards Samsung from the beginning of May 16, 1961, the date of his military coup d’etat. Rather he was hostile, in the early days of coup, toward all the Chaebol or rich men because of his concept of socialistic and Confucian justice, at the time, reflecting the general sentiment of Korea and the ever critical Korean mass communication. General Park’s economic development policy was greatly influenced by socialistically oriented economist Park, 18Hi Bum, the then dean of Commerce College, Seoul National University, and they agreed to mobilize capital from the rich families including the Chinese restaurant owners in Korea. Furthermore, the Military Government staged a currency reform with disastrous results. The event provide d Mr. Lee, Byung Chul from Samsung Group momentum to stage a personal confrontation with General Park (who then was elected to the Presidency of Korea) in 1963, and persuaded President Park with a plan of industrialization of import substituting, export oriented growth policy, and the normalization with Japan.Lee, Byung Chul contributed an article on the same idea of Korean economic development plan to Hankuk Daily Newspaper in Seoul, then, owned and operated by Deputy Prime Minister of Economy, Chang, Ki Yung. In the earlier phase of Korean industrialization, there was serious debate among the scholars and policy makers of Korea, with forceful arguments that Korea should build agriculture first before industrialization, because Korea had no basis of industrialization at all.These models were available in Taiwan and Denmark. And Denmark educated agricultural economist Yoo, Dal Young and Max Weber economist Choe, Moon Whan, both from SNU, who were in turn personally tutoring Presiden t Park, who would later formulate Saemaul movement to change the Korean farmers’ culture, in the manner of McClelland’s achievement motivation education from Harvard, in order to develop an agricultural economy without much material investment. Since Mr.Lee, Byung Chul and President Park, Jung Hee’s meeting, President Park decided to take Mr. Lee, Byung Chul’s Japanese style of the â€Å"industrialization first policy† with a Weberian push, in addition to his all-out effort on the export oriented industrialization projects and thereby attained the ‘Han River miracle’. But in the process, he delayed the ever mounting public desire for democratization and ended his life tragically in October 24, 1979, with his famous last words, â€Å"spat upon my tomb later. After a few years of trial and effort, President Park’s economic plan was more or less settled around the US educated econometrician Nam, Duk Woo, an engineer oriented burea ucrat Oh, Won Chul, along with the use of the history of Japanese industrialization as the main textbook after normalization with Japan in the mid ‘60’s. Also, his policy line did not deviate much from Samsung’s first CEO Lee, Byung Chul’s 9 original 1963 proposal. Along the same line of thought, Hong, Ha Sang’s (2005) sketching of Samsung’s top professional managers can also be taken as providing the necessary condition for the transformation because all leading OECD global corporations have plenty of top level professional managers similar to Samsung’s â€Å"genius management. But the genius does not automatically yield global management. Anyway, Mr. Lee, Kun Hee, in a way, has adopted American style management on top of his inherited Japanese style management with a Korean color, by recruiting global scale top managers with engineering backgrounds, which is rare in traditional Korean managers unless the founders also have engineeri ng backgrounds.Because of business closely linked to the governmental economic development plan at the same time to deal with every level of governmental Confucian feudalistic heritage, most of the top managers from large corporations have consisted of economists and lawyers to cope with the governmental or pseudo governmental interference and for lobbying purposes. Mr.Lee, Kun Hee maintained groups of lawyers and economists, but he stepped aside from the Korean conventional practice and recruited professional top managers from a combined elite of engineering and business specialties and encouraged them to break away from their traditional conservative bureaucrat nutshells and exhibit their high level entrepreneurship of experimentation including a certain a latitude of failure toleranceNikkei Business weekly magazine, (July 14, 2006) maintained that â€Å"Samsung power originates from passion and solidarity,† and this was the very aspect that was missing in the Japanese firm . It was pointed out in the article that the strength of Samsung human resources management can be found in the strength of regional expert development program to strengthen Samsung marketing in strategic regions such as China and India, as well as in the potential growth markets, like France and Italy.The missing link was not fully described in the article regarding the â€Å"passion and solidarity† behind the superb HRM. The question remains: What makes the top managers and employees deeply moved with this burning passion? A Korean diplomat, who was stationed in Japan for a long time, wrote a very persuasive book in Japanese, contrasting the two different cultures of Korea and Japan: Park, Seun Moo, ‘Sunbi’ (humanity scholar-poet-politician) and ‘Samurai’ (sword man-scholar-politician), 20 Tokai University, Japan (2004).One aspect of contrast can be seen between emotive idealism and cool headed pragmatism. And there are some scholars and businessme n in Korea who can harness the Korean passion and emotive energy into the productive Korean style business management: Lee, Myun-woo, â€Å"Create W theory of Korea, 1969† (as oppose to McGregor’s X theory and Y theory and Okuchi’s Z theory or Americanized Japanese theory) and Lee, Chang-woo, â€Å"Han Management, 1992† (Harness Long suppressed emotion, Han, 1994) Chin, Dae-jae, â€Å"Manage Passion, 2006† The secret also lies in the American style competitive compensation system.In the words of Mr. Lee: â€Å"The incentive system is the greatest invention of the century, turning the tide favorably for capitalism, vis-a-vis socialism† where the top managers’ annual income is roughly several times higher than that of the comparable top managers in Korea, and the system runs down throughout the Samsung system to the very bottom. Cho, Tu Sup and Yoon, Chong Sup’s joint work narrates the learning and maturity process of Samsungâ₠¬â„¢s technological capability. The work is descriptive of the past track, but it is limited in causal analysis.However, the strategy of technological capacity has been the core of the Samsung organizational learning in the age of globalization, â€Å"the first comer takes all. † â€Å"There is no place for the second comers,†-all translated into the catch phrase—increase the number of the world best products. Also, Samsung observers do not fail to mention the golden triangle of Mr. Lee, Kun Hee, the Center for Structural Realignment, and the outstanding abilities of elite top management groups, as the source of the Samsung transformation from the Korea best to the global best.But Japanese observers tend to put more emphasis on the outstanding leadership of ex CEO Lee, Kun Hee. There are at least three books published by a group of Korean journalists and a writer. They are â€Å"Samsung Rising: Why Samsung Electronics is Strong,† (2002, Hankuk Economic Da ily) â€Å"Lee, Kun Hee,† by Hong, Ha Sung (2003, Hankuk Economic Daily), covering the period immediately after the Samsung Spectacular Performance between 1999 – 2002, and a slightly critical autobiography by Kang, Jung Man, titled â€Å"Lee, Kun Hee’s Era,† reflecting increasing criticism of Mr.Lee because of a †no union policy† and a suspected immoral deal in the process regarding his property inheritance for his son, etc. (2005, Personality and Thought) 21 What has Samsung achieved in the process of organizational transformation that made a paradigm shift to facilitate an essential part of the Korean-style management? In other words, what kind of model or models could be applied to explain the transformation processes of Samsung Electronics and Samsung Group? There are at least three models, which can explain the change process of Samsung.These are: Strategy models such as R&D strategy and core competence models. Organizational theory mode ls such as HRM, leadership, learning and culture Knowledge management model But each of these models can only provide a partial explanation of the dynamic processes of organizational transformation within the Samsung Group. Strategy models: R&D strategy and core competence model: There is the effect of equifinality, one of the concepts of General Systems Theory and/or contemporary complexity theory) in most of the successful firms’ strategies and outcomes.All the global leaders have similar strategies in the large framework of aspiration towards global leadership. The question is, how does one attain them. Almost every Chebol group with better technological leadership adopted a similar strategy when South Korea signed the WTO membership in 1992, but only Samsung has reached the goal(s). The simple contrast cannot explain the dynamics behind the quantum leap of Samsung from a developing nation status to the advanced nation status of Sony, Erickson, and Motorola, the establishe d leaders of the industrialized countries.Samsung can be better compared to the NEC case of 1980’s vis-a-vis GTE. C. K Prabalad and Gary Hamel (Harvard Business Review, 1990) observed that top executives will be judged on their ability to identify, cultivate, and exploit core competencies that make growth possible. And Mr. Lee is the right person in that capacity for Samsung. GTE 1980 Sale 1988 Sale $9. 98 billion $16. 48 billion NEC $3. 8 billion $21. 89 billion 22 In 1988, GTE has become a telephone operating company with a position in defense and lighting.GTE has divested Sylvania TV and Telenet and put switching, transmission, and digital PABX into joint ventures. In the same year NEC has emerged as a world leader in semiconductors, consolidated a position in mobile telephones, facsimiles, laptop and mainframe computers. As early as in 1970, NEC communicated her strategic intent of computer and communication convergence (C&C) both internally and externally. The NECâ€℠¢s strategy has been adopted by most South Korean firms as the Government proclaimed in 1983, the 1st year of the Korean Information Age.Samsung Group has concentrated her whole effort towards the strategic intent of â€Å"world best† and â€Å"increase number of world best products. † It’s organizational culture is simplified in this precise catch phrase and readily communicated to every corner of the system. According to the authors Prahalad and Hamet, The most powerful way to prevail in the global competition in the ‘80’s were top executives’ ability to restructure, de-clutter, and de-layer their corporation, but in the ‘90’s on, they will be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible.And this was exactly what Mr. Lee did since the beginning of his chairmanship. Samsung’s successful transformation in the last decade or more can be explained from successful organizational change and innovation model and/or leadership model and/or strategy of core competence building model and/or knowledge management model and more. But it can be enveloped into organizational learning, centering on transformation of organizational culture and cultivation of core competence. Some observers attested that Jack Welch started from restructuring to reform of organizational culture, but Mr.Lee went the other way around because the very unfavorable Korean socio-cultural environment and the 1997 IMF crisis have facilitated the process. Now under Mr. Lee, Kun Hee the leadership of the new Korean management style is a blend of both Japanese and American styles of external labor market and differential compensation and no life long employment, with the element of Silicon Valley’s revolutionary spirit. And it is also actively benchmarked by many Korean firms, as observed by Professor Lee Byung Chul (2002).There are indications that Japan, too, is groping rel uctantly towards a new model. 23 After all, many aspects of the Japanese cultural model can be considered as a reflection of globally small firms in the stage of rapid growth, rather than the uniqueness of the culture. A new approach is recommended to tap â€Å"culture† holistically and longitudinally instead of by simple snapshot of two firms for better causal explanation as practiced by political scientists, communication scientists, and sociologists relying on secondary sources of data too. Samsung leadership under Mr.Lee has gone through a systematic, dynamic, organic and nonlinear process of leadership of strategic or targeted organizational learning centering on core competence building. In the global arena, prevailing firms are mutually inspired by a competitive mutual benchmarking process among the world best firms. And it is observed that, of late, Samsung and Toyota are mutually benchmarking. (Lee, Chae Yun, 2006) Recently, Mr. Lee stated, in the presidential meetin g of Samsung corporations, â€Å"we don’t need top executives who are copying someone else’s ideas and strategies†. As many of our products are in the leading positions in the global market, we lost the target to benchmark or imitate. Samsung must strive towards a unique and differentiated creative management. † â€Å"With negotiation on FTA with U. S. A. for an accelerated domestic market opening and with China making a big stride in the global market, we are faced with both crises and opportunities. We must discover and cultivate a creative management system and creative personnel. † (Hankyung Economic daily, June 28, 2006) As many observers have attested, Samsung Electronic has the elements of GE and Toyota.It is natural that any firm among the global leaders would attempt to benchmark the best practices for the best performing companies. But one should not overlook the fact that there is an organic approach in the Samsung word â€Å"fusion. â⠂¬  Technological capability advancement, strategies of marketing and finance, and the process to convert into market taste of design are simultaneously used to break through the barriers of bureaucracy, or the tyranny of the small business unit, as written by Prabalad and Hamel (1990). Bureaucracy is the greatest invention of the Industrial Revolution.The founding fathers of economics and sociology, Adam Smith and Max Weber, respectively, described the merits in an elaborated manner: specialization and division of labor. How to retain the merits of the system and at the same time reduce the inherent problems of delay and red tape? In 1992, Mr. Lee was awarded the Korean Management Prize 24 of the Year at Korea University by the largest Korean business professor’s academy, The Korean Association of Business Administration. In his acceptance speech, Mr. Lee said in a slow and hesitant voice, â€Å"I was once approached by a Japanese engineer at Kimpo Airport.He said that Sam sung Electronic developed a high quality DRAM no sooner than the time when the Japanese rivaling company announced its own development. Our production was 6 months delayed by Samsung’s inner paperwork. So, for the next time, I assembled every concerned party so that we could announce the next generation chip simultaneously with the world big leaders, and eventually we beat them. † This was exactly the way how the late President Park handled the problems by regularly holding the Blue House Expanded Presidential Export Expansion meetings.Quite a few Japanese specialists on Samsung have observed that Samsung’s strength lies in the fact that Lee, Kun Hee’s term of office is indefinite, allowing him a free hand to delve into long range opportunities and strategic visions, while the Japanese CEO’s term of office lasts only 2-3 years, on average. This reminds us of the similar observations made by American scholars in the ‘70’s and ‘80â €™s. The Japanese CEOs were obligated to satisfy the major shareholders, the bank, whereas the American CEOs had to satisfy shareholders every year.However one should take note of the Samsung golden triangle in terms of its dynamics. Kang, Woo-ran, SERI (2006) conducted a survey to find that the Korean firms with Owner CEO- Professional managers combination out-achieved, as compared with Professional CEO only model or Owner CEO only model between 1986 and 2004. Michael Porter (1996 2004) suggested that the often acclaimed strategy of Japanese management was nothing but operational effectiveness. The Japanese businessman quickly caught up with the American businessman in a relatively short time span, between the 1960’s and 1980’s.In the process, Japanese firms exhibited core competence and accompanying Japanese best practices. They were recaptured by the American scholars in the form of new management theories: Total quality management, 6 sigma management, MIS netwo rk linked inventory-delivery systems, lean management and restructuring, knowledge management, benchmarking, organizational learning, to name a few. So the Japanese firm’s comparative advantages have been shared by many global firms in a slightly differentiated manner. 25 4.Culture, Goal Oriented Communication (Leadership) and A Fast Growing Organization, Samsung Electronics Samsung Electronics’, the centerpiece of the Samsung group, market value was only 420,680 million won in 1987 when ex CEO Lee, Kun Hee assumed the chairmanship. Ten years later in 1997, it was 3,996,909. 66 million won or roughly 950% increase. That is not bad. But from that time on, there has been a steep ascending of the market value of 12,179% increase of 91,671,138. 128 million won in 2007. One would naturally be tempted to ask, â€Å"What happened to the leadership of the first 10 years with ex-chairrman Lee, Kun Hee? Sams u ng Electro nics Market V alu e (1,000w o n) 12 0,00 0,0 00,0 00 10 0 ,00 0,0 00,0 00 80 ,00 0,00 0,0 00 60 ,00 0,00 0,0 00 40 ,00 0,00 0,0 00 20 ,00 0,00 0,0 00 Name 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Name Samsung Electronics Market Value (Unit 1,000 won equals roughly 1 to 1. 30 US Dollars) 1983 63,350,000 1989 1,640,470,000 1984 76,950,000 1990 1,318,439,793 1985 137,500,000 1991 1,328,438,858 1980 41,440,000 1986 308,000,000 1992 1,587,069,540 1987 981 59,500,000 1988 1982 64,400,000 420,680,000 1993 1,020,330,990 1994 6,272,521,240 3,013,541,426 1995 9,052,186,755 2001 44,932,513,615 2006 1996 3,579,480,030 2002 51,542,526,788 2007 1997 3,996,909,660 2003 73,785,248,588 1998 10,918,438,172 2004 73,174,129,278 1999 44,086,251,261 2005 108,281,475,740 2000 25,544,557,299 26 2006 0 101,254,538,541 91,671,138,128 Key Figures Representing Changes in Samsung Group in 20 Years Unit Sales Trillion Won 1987 17 2006 152 Ratio 8. 9 Profit Tax Before 0. 27 14. 2 52 . 8 Market Value 1 140 140Export 9 663 73. 7 Brand Value 100 dollars million None 169 (2007) N/A Number of Employees 10,000 men 16 25 1. 6 Source: Samsung Greoup PA Office Materials, Feb. , 2008. Scanning through the observervations made of Samsung Electronics’ rapid growth, one factor clearly emerges–the ex-CEO Lee, Kun Hee’s leadership as the success factor including his bold and swift large scale investment decisions at key junctures: When there was a debate over DRAM and SRAM, it was Lee, Kun Hee’s decision concerning DRAM, difficult to develop, but with he promise of a greater potential market. And the decision turned out to be a very wise one. When Samsung started to build Kiheung semiconductor lines, it was completed in 6 months while similar lines would take one year and a half in the overseas cases. Chang, Sang Soo (2005) observed that Samsung Group has gone through 4 stages of growth in an accelerated pace based on superb leadership of ex-CEO Le e Kun Hee and superb corporate culture of upper managements’ shared value: â€Å"a single mind towards a single goal. It indicates that Samsung’s global technological capability development has been possible due to the transformation of corporate culture as one of the pillars of Samsung global competence. So the leadership in transforming the Samsung culture and core competence by Lee Kun Hee has created the paradigm shift. 27 To understand Lee Kun Hee’s leadership, the comparison of first and second generation corporate culture is in order. Over the years, Mr. Lee, Byung Chul an ardent Japan learner had shaped Samsung as a rational bureaucratic model under a fragile and protective Korean economy.Korea did not have any capital, so the government obtained good quality loans and grants from the USA, West Germany, Japan, and World economic organizations, and in turn provided loans to selected Korean firms under the condition that the firms use the funds to set up industries within the guideline of the Government Plans. The interest rates were at international level, but the Korean market bank loan rate was several times higher under the high inflation rate, and thus the economic developmental loans were highly covetous in Korea.And this is one of the sources of the blame on the Chaebol and rich families receiving the governmental special favor, or the politician-capitalists corruption suspicion to date. Having neither technological nor managerial capabilities, most Korean firms exploited the cheap labor from the agricultural sector, at the same time attempting to build scale economy as sources of international competition emphasizing quantity in light industry and new and primitive petro-chemical and heavy industry. And Mr. Lee, Kun Hee emphasized quality over quantity in his first statement soon after his chairmanship inauguration.Against such backdrops, Chang, Sang Soo compared the first generation and second generation corporate culture a s follows: Change of Samsung Core Values First Generation Corporate Culture (1938-1987) (1988 – 1993. 3) Second Generation Corporate Culture 1993. 3- to date Second Founding Father’s Doctrine(1993) Dedicate to the human society through the best Founding Father’s Doctrine (1973) Contribute to nation through business Put priority on human resources Seek rationality Samsung Spirit (1984) Creativity High ethical standard Be Number one in the nation Perfectionism Co-prosper anpower, technology and the best services Samsung Spirit (1993) Co-prosper with customers Challenge to the world Create future Core Value (2005) Priority on human resources Aspire to be the best Leader of change Righteous business management 28 Co-prosper Principles of Management (2006) Stick to principles of law and ethics Maintain clean corporate culture Principles of Business Management Respect customers, stockholders and employees Respect environment, safety and health Fulfill social responsib ility as a corporate citizenFrom the chart, we can examine the Samsung aspiration to be the leader of the industrial age in the first generation founding father’s culture of rational bureaucracy, and the transformation of the second founding father’s culture as the leader of the globalization and digital and/or knowledge economy. In a similar vein, reporters from DongA Daily Newspaper depicted the change of corporate culture as follows: Change of Samsung Corporate Culture Past Minimizes Risk Taking New InvestmentPresent Put Emphasis on Taking a New opportunity Failure Decides after a Through Internal Decision Making Down Power Strong Management Management Management Staff Step Aside from the Operational Staff Decision Control size Delegated Decision First recognizing Investigation Culture Staff of Making while Financial System is Retained Conservative Emphasizes Process Rationality in Every Detail DongA Daily Newspaper, June 4, 2004 Image Evaluation Emphasizes Speed Em phasizes the Outcome Mr. Lee, Kun Hee has received thorough CEO training from his father for 21 years before taking over the position.He and his father-in-law, a lawyer and owner of ChoongAng Mass Communication, were ever present at his father’s staff meeting, usually during lunch hours. He could not retire from his office until he personally confirmed that his father was in bed. Mr. Lee, Byung Chul had chosen Mr. Lee Kun 29 Hee, the third son, against the conventional Korean tradition of passing the reins onto the eldest son, because the first son had a grave disagreement with his father. The second son was talented in business, but Mr.Lee Kun Hee was more futuristically oriented, even forcefully starting his own hi-tech venture in the early days when Korean technology was at an infantile stage.. Leadership Styles Compared: Mr. Lee, Kun Hee went through CEO training from his father, but his leadership style is so different from his father, though sharing some similarities. M r. Lee, Byung Chul emphasized the importance of personnel management and human resources, and he also mentioned that 80% of management dealt with the question of how to manage persons.He personally participated in the recruitment process in examination problems and personnel interviews, and at times, personally selected topics for group discussion in the screening process. Mr. Lee, Kun Hee expanded the inner labor market of selection and promotion systems to open system for the external labor market in recruiting outstanding personnel and managers. His father, a strict time keeper, who enjoyed talking, was concerned with every detail of the Business operation. His father practiced regular walks around management and was strict in awarding prizes and punishment for the subordinates.In contrast, Mr. Lee, Kun Hee is a good listener and often repeatedly asked, â€Å"why? why? why? † He rarely came to his office in the company building and mostly delegated his authority to his pro fessional top managers, and confined himself mostly in his electronic fortress called Seungjiwon, modeled after Microsoft CEO Bill Gates’ work place/residence, and developed long range visions of strategies for Samsung, specializing in a comprehensive and long range gatekeeper role. His organizational management has a flavor of human touch. He is a night worker and his sleeping hours are irregular.Although he confined himself in Seungjiwon, he gets instantaneous high qu