Recommendations to Furniture Works on creating a global structure

Recommendations to Furniture Works on creating a global structure Multinational Companies A Multinational Company is defined as an enterprise which is operating in several countries but managed from one home country  [1]  . They have their headquarters in one country but operate on different countries known as host country. Numerous examples of these organizations are Ford, General Motors, Dell, Microsoft, Google, Siemens etc. There are obvious benefits for companies to expand their business to other countries. Few of them are cost advantages such as cheap labor, reduce transport and distribution cost, constant supplies of raw materials, and avoid any trade barriers  [2]  . Companies which do business overseas face many challenges. Cultural challenge is one among them. As we have seen from experience companies which tend to do more research and spend time and effort to study and understand the cultural differences is more successful than the companies which dont do their homework. Let us take an example where Mr. X wants to expand his Pizza business from United States to India. The cultural difference between India and U.S is a huge obstacle which needs to be studied by Hofstede cultural dimensional model. Cost structures, eating habits, trade barriers are few important variables which needs to be studied before setting up an franchise. One must try to differentiate what are the major differences between U.S and Indian culture? How these differences are going to affect the business? What are the measures need to be taken to avoid these risks? What kind of work ethic do Indian employees follow? Is it different from U.S? In U.S they follow very competitive work ethic which means profitability comes first. Mr. X shouldnt expect the same level of work ethic from Indian employees. He needs to be patient for the business to grow and yield profits. Next he must work on his brand. In U.S branding and creating a image to a company makes many loyal customers which he needs to work on with the new Indian market which will take time and effort and he should choose his advertisement carefully for Indian culture. Also Indians prefer traditional food so Mr. X should work on how he can market his fast food into the market  [3]  . The CEO, Furniture Works, South London. U.K REPORT ON RECOMMENDATION AND REFLECTIONS FOR FURNITURE WORKS TO EXPAND ITS PRODUCTION ABROAD GLOBALY: This report is for Furniture Works, South London, which is proposed to start Internet Sales. The company plans to establish its production function abroad. Initially it is working and conducting business in UK locally but there are future prospects for global expansion plans. As a Management consultant, my functions involve examining and analyzing alternative organizational and communication system the main idea behind this move is to develop a Virtual ORGANIZATION. With reference to the above all discussion and my evaluation here are my recommendation for effective Global structure for Furniture Works. Licensing- My first recommendation in phase of establishing business across the world for furniture works must get Revocable written formal or implied agreement by an authority or proprietor from the host country according to their Law. Joint Venture- My second recommendation for Furniture Works is to establish a Joint Venture with the local firms in the host country through this Furniture Works can formed to achieve its objectives of a partnership like temporary and permanent arrangement between two or more firms for its business success. Consortia-My Third recommendation for Furniture Works is Consortia its a Japans Term which means Cross ownership Agreement between Firms. For firms such as Furniture Works who want to expand their business internationally, it is inevitable for them to face the cultural challenge. Further I recommend following Business Strategies for Furniture Works: Globalization Strategy- organization like furniture Works should go through the process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. Multi domestic Strategy- Another powerful strategy for Multinational Company like Furniture work is multi domestic Strategy. This means production of business within local community. Production, supply, Research and development and marketing are established nationally where business is done. After the business is moulded and developed locally innovation comes into picture which means there is decentralization which being outsourced locally  [4]  . Global Challenges- till now the Furniture Work is managing its business in U.K. for going to start business and getting expansion as Virtual Organization the Furniture Works should be ready to face Global Challenges like: Complexity and differentiation with different cultures and nations. For making better business environment sometimes big organization have to be ready for integration with local organization at host country. While establishing business links with different countries the Furniture Works should transfer its knowledge to local employees at host country. Finally I am recommending to the Management of Furniture Works how to Coordinate with its new companies worldwide. Global Teams- Furniture Works have to depend on teams working at international boundaries for the improvement of the business. In Multinational organizations such teams at the board level, product-development, and multi-cultural teams from various functions responsible for the global alignment of functional business processes. Headquarters Planning- Being an International Company the Furniture Works Headquarters must be in London, Which is its homeland country. Expanded Coordination Roles- Furniture Works should creating a supportive and enabling environment for the implementation its products selling in all those companies around the world. Bureaucratic Organization- Very large organizations which are well structured and well defined may be termed as bureaucratic organization. The main elements of such as organization is standard use of protocols and procedure to perform a particular task and high degree of control to make sure any particular task is performed to the standards  [5]  . There are two types of bureaucratic organization which are as follows, Standard bureaucracy : These type of company normally do standard routine work where large technical staffs led by mid level managers led by senior management. Professional bureaucracy: This type of company also does standard work but relies on efficient performance and complex in nature where the company hierarchy has only few mid-level managers. Flat Organization: Flat organization tends to have few level of hierarchy which means chain of control is short. This makes high level of employee involvement in decision making which increases team morale and spirit. This structure can be successful only in small organization. Boundary less Organization: This type of organization is of contemporary approach as they cant be defined or limited to or draws lines or boundary which is why the name boundary less organization came. Flexible and unstructured approach seems to be successful and many companies have started this approach after Jack Welch of GE coined this term.

Market Study of Berger Paints Bangladesh Limited

Market Study of Berger Paints Bangladesh Limited 1.1 Problem Background Bangladesh paint market is experiencing a good growth of 8-10% per annum consistently in the late 90s and early years of this century mainly because of a boom in real estate development[1]. Besides, this trend in growth of demand is likely to persist or may even witness an upswing in the future as the country moves from rural base to urban base project (Real estate). There is a huge possibility that paint industry will further thrive because only 39% of the target market are currently using paint and others are progressing to get into the trend of using paint instead of the traditional way of whitening their dear houses. According to the cement manufacturers of Bangladesh, the cement market is also growing at around 4% p.a., which correlates quite well with our paint market growth data. The limited growth up to now in industrialization and per capita income in Bangladesh has restricted the size of the paint market, which is currently at around Tk.755-800 crores (1.5-1.6 crores gallon s)[2]. However a good number of local paint manufacturing companies (40 organized and at least 50 more in the informal sector) have been operating in this small market. Quite a few of these companies are producing paints of internationally acceptable quality and very importantly, the installed single shift production capacity of the local paint companies is double the present local market demand. Berger, the market leader in the Bangladesh paint market, is one of the oldest names in the global paint industry. It has its origin in the year of 1706 and from then on the company is operating with strong adherence to quality and social responsibility. Initially, Lewis Berger, a German national, founded dye pigment making business in England. Lewis Berger Sons Limited grew rapidly  with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies uniform. Production of dyes pigments evolved into production of paints coatings, which till today, remains the core business of Berger. Today, Berger offers all kinds of painting solutions in decorative, industrial or marine segment for both decorative and protective purpose. Based on the secondary literature survey, experts opinions and consumers requirements, the broad and the specific Objectives of the research have been set-â€Å"Market Study of Paint Industry in Bangladesh†. This objective can be met by following the study methodology described in the forthcoming chapter. 1. 2 Origin of the Study As a partial requirement for the completion of the MBA program, internship program is a vital part which opens the door to gather the practical knowledge in relation with the theoretical knowledge. MBA program at University of Dhaka requires a 3 months long internship program. As an intern, I was placed in Unitrend Limited- Affiliated with McCann Worldwide. I worked for 3 months in the Unitrend Limited (Brand Division), under the supervision of Jahidul Islam, Senior Brand Executive of Unitrend Limited. As an intern of the department I was asked to assist the Brand section (Berger pints Bangladesh Limited). After consultation with my supervisor, my faculty advisor at University of Dhaka, Dr. Serajul Hoque (Professor, Department of Marketing), I decided to explore â€Å"Market Study of Berger Paints Bangladesh limited (BPBL)†. 1. 3 Objectives Based on the secondary literature survey, experts opinions and consumers requirements, the broad and the specific Objectives of the research have been set. 1.3.1 Broad Objective Market Study of Berger Paints Bangladesh Limited (BPBL). 1.3.2 Specific Objectives i. To analyze market trends market shares of BPBL ii. To Analyze competitor behavior and performance iii. To determine current satisfaction level of BPBL iv. To find out whether current products of Berger Paints Bangladesh Limited meet consumer expectations or not. v. To identify the reference group (Painters, Architectures,) influence of the customers in choosing specific brand. vi. To find out the market potential for existing products (e.g. market size, growth, changing sales trends) vii. To Assess the potential for new products that are not provided by the current paint manufacturers ( in term of New product Development) viii. To forecast new user for existing products 1.4 Approaches to the Problem 1.4.1 Theoretical Framework A pull demand is created when demand is created in the market and is the most beneficial. To implement such a strategy we have to first assess the needs of the market, judging the perception of customers and contractors and finding out new locations and convert them into new dealers so that there is more availability of the product in the market.Assessing competitor market and developing a strategy to kill or overcome competition is the second part of the report. Opening new dealers in the market will take care of this. Expanding the dealer network helps in market penetration.All the effort will be a waste if there is no demand from the end consumer of goods. Painters, contractors, advertisements, friends and family influence the end customer. So the end customer generates the main demand and Berger Paints must analyze customer satisfaction over time. A Job Satisfaction Data Form How did you know regarding the services being rendered by Home Decor? TV†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Press†¦Ã¢â‚¬ ¦..Friends †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Word of Mouth †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Others†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ We would like to have your comments on the following job details 1. Shade: Very Satisfied †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Satisfied †¦Ã¢â‚¬ ¦.. Not Satisfied†¦..†¦ 2. Design: Very Satisfied †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Satisfied †¦Ã¢â‚¬ ¦.. Not Satisfied †¦Ã¢â‚¬ ¦. 3. Workmanship of Painters: Excellent †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Good†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Average†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Poor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4. Service by Color Consultants: Excellent †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Good†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Average†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Poor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5.Overall Service by Home Decor: Excellent†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Good†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Average†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Poor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6. Will you refer Home Decor to anybody in near future? Yes†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. No †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7. Completion done according to the time schedule: Yes†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. No †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 1.4.2 Analytical Model: 1.4.3 Research Questions Hypotheses: A structured questionnaire has been used to collect data. Multiple choice questions and dichotomous questions have been used to develop structured questionnaire. H0: There is no association between customer satisfaction (DV) and factors influencing customer satisfaction (IV). H1: There is an association between customer satisfaction (DV) and factors influencing customer satisfaction (IV). 1.5 Problem Definition Management Decision Problem 1. Is the Current satisfaction level of Berger Pints Bangladesh Limited satisfactory? Marketing Research Problem 1. To determine the factors those affect the customer satisfaction level of Berger Paints Bangladesh Limited. 1.6 Problem Variables 1. Dependent Variable To determine customer satisfaction level of Berger Paints Bangladesh limited. 2. Independent Variables Price Availability Variation in paint Variation in Shade Attractive Packet Packet Size Longibility Discoloration Swelling Powdering Thinner Requirement 1.7 Research Timeline: Activities Time (Week) 1-2 3-4 5 6 7-8 9 10 11-12 Preliminary Preparation Selection Training of Fieldwork Data Collection Data Analysis Draft Report Preparation Rerport Presentation Final Report Preparation 1.8 Limitations The study aims to explore analyze market study of Berger Paints Bangladesh Limited and find out if there is any scope for its improvement. In doing so, I have encountered the following problems: The Large sample size could detect the problems more accurately. I was unable to dedicate sufficient time to make an in-depth on such an important issue. It is quite difficult to write about an organization within 3(three) months. Heavy workload at office was one of the main barriers of this study and additional time for doing the survey could hardly be extracted. Another limitation of this report is Enterprises policy of not disclosing some data and information for obvious reason. 2.0: Literature Review The annual report of some of the leading paint companies of Bangladesh including Berger Bangladesh Ltd., Asian Paints Ltd., Elite Paints, Sagor Chemicals Company Bangladesh Ltd., etc. were studied along with whatever reports that were available. However, a good number of them were back dated and were of little use in view of the fast changing market position. Apart from the literature so far consulted, the initial phase of the methodology began with the review of relevant literature on the issues indicated under the â€Å"Top-down† and â€Å"Bottom-up† approaches as well as aspects under â€Å"Projection†, assimilation of relevant data available in the secondary sources, and then conducting a desk research. 2.1 Literature in the official website of Berger Paints Bangladesh Ltd With a view to bolstering consumer satisfaction, Berger Paints Bangladesh Limited has introduced â€Å"Berger Home Dà ©cor† on June 15, 2002 through which one can get an array of services pertaining to painting. Berger Home Decor offers two-stage services: 1. Free Service 2. Paid Service Berger Home Dà ©cor is currently offering wide range of services to its prospects and existing consumers embracing: Technical advice on surface preparation and application guideline.  · Paint selection.  · Dealer selection.  · Painter/ Contractor selection and  · Color scheme. 2.1.1 Literature on the Fundamentals of Berger India Illusions which formed a basis for BPBL Illusions †¦.†¦Report on BPIL Attachment on Illusions Syed Tanzim Rezwan, Assistant Product Manager, BPBL  · What is Illusions? An illusion is basically mentioned as ‘Designers solution/finish. It is more related to the application procedure than product. Regular products are applied with some specialized tools and in some cases with some specialized chemicals to get the desired design. As it is more related to the application procedure, Illusions is offered as a full painting solution rather than a product and that is why it is more like offering a service than a product.  · Objectives of launching Illusions The objectives are: Enhancing the brand image of Berger Value addition to the existing painting service  · Area of usage Illusions is basically a design finish. So it is more appropriate for the interior walls. Plastered walls or wooden surfaces are the preferred surfaces for Illusions use. One has to remember however, that Illusions is more like a designer finish than a protective one. So areas with exposure to high heat or water are not prescribed for Illusions use.  · Distribution Strategy The way Illusions is offered: Berger India is using their Home Dà ©cor facilities to offer Illusions in different cities. Their basic idea is to offer the painting solution through the existing panel of painters they have for different cities. 2.1.2 Literature on the Illusions Procedure as a service flow, developed in Berger India and which formed a basis for the service flow of Illusions in BPBL with some modifications; literature on client generation for Illusions through promotions by Berger India Modus Operandi Satellite Operations: BPHD/Illusions Berger India Illusions procedure as according to Berger India:  § On receipt of enquiry the Customer Support Manager will visit the site and complete finalization of the design/area of application/shades and fill into the job estimate page of the customer fact file  § The final estimate from the customer fact file is to be filled in and given to the customer.  § On customer agreeing to the job, 100% collection by means of a single current dated cheque is to be taken from the customer and a painting schedule has to be developed for the job. The cheque details and the painting schedule have to be filled into the customer fact file in relevant pages.  § On realization of the cheque, the materials for the job may be purchased from the dealer as deposited by the depot manager. Material will be issued by the dealer only against the order. Dealer on delivery of the material to the site has then to raise a bill on Berger Paints Home Dà ©cor for the material supplied and submit it along with a copy of the Material Requisitions form.  § Tools required for the job are to be signed out to the painter who has been allocated the job.  § A ‘Before photograph is to be taken of the site and on completion of the job. An ‘After photograph is also to be taken for each of the areas where Illusions designs has been applied.  § On completion of the job, the completion certificate has to be signed by the customer and following this, the warranty certificate has to be handed over to the customer along with a ‘Friendship ka faida reference booklet. Lead Generation: All of the below mentioned modes of promoting Illusions will be followed in varying mixes depenmding on the efficiency of the individual methods.  § Referrals: 10% of the job value will be paid to the referring party as referral commission Dealer Contractor Architect Interior Decorator 2.2 Literature on Asian Paints entering Bangladesh paint market -Asian Paints starts operations in Bangladesh 04 September 2002 Asian Paints, Indias largest paint company, has begun its operations in Bangladesh. The entry into Bangladesh marks Asian Paints 11th joint venture in international markets and its largest green-field venture in overseas markets. The inauguration of the operations of Asian Paints (Bangladesh) Ltd was done by Bangladesh Minister of Industries M K Anwar and Asian Paints (India) Ltd vice-chairman and managing director Ashwin Dani. M Rahman, executive chairman, Board of Investment, Bangladesh, and M L Tripathi, High Commissioner of India to Bangladesh, were the other distinguished dignitaries at the inauguration. Said Dani: The opportunities that the Bangladesh market provides for Asian Paints are immense. The experience that we have gained from operating in three out of six countries in the SAARC [South Asian Association for Regional Cooperation] region has armed us with excellent expertise to operate in this region. We would like to provide value for money and the complete range of products for the Bangladeshi consumer. He further said that low per-capita consumption of paints, vast potential to upgrade the market, limited product range, increased urbanisation and consistent GDP growth of around 5-6 per cent have been some of the reasons for Asian Paints entering into this market. Moreover, this venture will help the company consolidate its position in the SAARC region. Asian Paints (Bangladesh) Ltd is a joint venture between Asian Paints (India) Ltd, Indias largest paint company, and Confidence Cement Ltd, one of the largest cement producers in Bangladesh. Asian Paints will hold 51 per cent stake in the company, while 49 per cent will be held by Confidence Cement. A fully-integrated paint manufacturing unit has been set up and is situated in the Ghazipur district, north of Dhaka, which will service the entire Bangladesh paint market. Asian Paints will introduce the Apcolite range of products, which is its premium quality range in international markets, and the Decora range, which is its international brand for economy products. Under the Apcolite and Decora brands, many product segments will be covered in the initial phase. Asian Paints will enter into segments like interior wall finishes, the exterior segment, enamels and the wood finish segment through the above-mentioned brand names. The company will immediately introduce the concept of multiple shade choice to the Bangladeshi consumer in most of its emulsion paints. The launch of multiple shades in its Apcolite range of emulsions will provide to the Bangladesh consumer, for the first time, a wide choice of colors that was not previously offered by any paint company. The total Bangladesh paint market is estimated to be over 30,000 MT, valued at around INR 2200 million (US $45 million). The market is growing by around 5-7 per cent. The GDP growth for the country has been consistently around 5 per cent and the per-capita paint consumption is around 250 gms. The market, thus, provides high potential for growth as well as an opportunity for paint manufacturers to upgrade and expand the market. 2.3 Literature on Aqua Paints Architects Awards -Four to receive Ice Today Aqua Paints Award Shawkat Marcel Khan Four interior designers will be awarded the Ice Today-Aqua Paints Award 2007 for their works on interior design. The names of the winners will be announced during the award-giving ceremony which will be held at the Radisson Water Garden Hotel in the city on July 14. The award will be given for innovation, creativity and outstanding achievements in interior design in Bangladesh, said the organizers at a briefing, held at a city hotel on Thursday. ‘The grand prize will not be given as the jury comprising Mustafa Ameen, Nahas Ahmed Khalil and Kazi Golam Nasir did not find any design suitable for the award, said the executive editor of the monthly magazine Ice Today, Ziaul Karim.‘Each winner will receive the Commendation Award valued at Tk 25,000, a crest and a Nokia set, he added. A total of 27 designs were submitted in ‘Residential and Non Residential categories. The jury short-listed the entries to eleven designs in the first phase. Then, they visited each sites and narrowed down to four designs taking three from Non Residential category. 2.4 Literature on Home Dà ©cor Coverage and Painters In total there are Home Dà ©cor outlets in Bangladesh in total. However, apart from the specific regions where these outlets are situated, consultants and painters also travel to nearby areas and thus affectively cover a wider area as shown in Fig 2.2. The following tables and s are information gathered and organized by BPBL: Table 2.1: Painters and Contractors of Home Dà ©cor in Bangladesh Depot Contractor Painter Dhaka 15 38 Chittagong 5 14 Sylhet 3 7 Comilla 2 5 Khulna 3 8 Bogra 1 2 Rajshahi 1 2 National Total 30 76 The following tables and s are information gathered and organized by BPBL: 3.0: Methodology The methodology upon which the team undertook the assignment comprises of top-down and bottom-up approaches effected by literature review, secondary data analysis and desk research, and by conducting surveys, which after consultation with the experts yielded a pragmatic Market Analysis preceded by an overall industry situation, competitor analysis and customer analysis. 3.1 Nature of Research and Sources of Information The conclusive research design adopted is descriptive in nature. The sources of data were both primary and secondary. It involved collection of data about the characteristics of the paint market, competitors and different supply chain members. Secondary information was gathered from websites, newspaper articles, journals and annual reports of different paint companies. The design of collecting primary data from customers (end users) follows the following section. 3.2 Sample Design The sample design consists of defining the target population, determination of sample size and sampling method. 3.2.1 Target Population To collect data from customers (users) the target population is defined to be the households of Bangladesh. The country was considered to be composed of three economic zones (High, Medium and Low) on the basis of economic activities as follows: Zone 1: (High) : Dhaka, Chittagong and Sylhet Divisions Zone 2: (Medium) : Barisal and Khulna Divisions Zone 3: (Low) : Rajshahi Division. [Source: Statistical year book of Bangladesh Bureau of Statistics, 2007] As the use of paint is very much related with rate of urbanization, the divisional cities of Zone 1 were selected. However, another divisional city was selected randomly from the Zone 2 to make the sample more representative to the entire population and it turned to be Khulna city. The sole division of Zone 3 could be taken into consideration too, but after consultation with the experts, it was omitted from the sampling plan for better utilization of the resources available to the Research Team. 3.2.2 Sample Size For determination of sample size, the Research Team tried to adopt various sampling techniques. But as the ratio of house owners (who are the end users of paint) is too small to the entire population of Bangladesh, the sample size becomes very small. So, after discussion with experts and the appointing authority, the sample size per city is determined to be 100. So the total sample size of this study is 400 (100X4). The distribution of the samples are furnished in table 3.1. Table 3.1: Sample distribution Dhaka Chittagong Khulna Sylhet Total End users 80 80 85 85 320 Dealers/Retailers 10 10 5 5 30 Painters 5 5 5 5 20 Architect/Developer 5 5 5 5 30 Total 100 100 100 100 400 3.2.3 Sampling Method Systematic sampling method was adopted for selecting samples. Households were considered sampling units and owner of the household was considered sampling elements. The holding list of City Corporation was used as the sampling frame. The frame was divided by the number of samples required to determine the sampling intervals. Then the first sample was selected from the first sampling interval following simple random sampling and then the rest of the samples were selected from subsequent sampling intervals as usual. If a household was found ineligible then the next adjacent household was considered the sampling unit. For conducting the surveys on the channel members, samples were selected based on judgment. The fieldwork was carried out during the period of May 28 to June 10, 2009. 3.3 Instrument and Scale for Data Collection Structured Questionnaire was used as the instrument of data collection. Five sets of questionnaire were used for customers, dealers, retailers, painters and developers respectively (Provided in the Appendix Section). Questions set in the questionnaire were worded with simplest form possible. Rank order scale and 5 point Likert scale were used in these questionnaires. In each questionnaire, at least one question was set as an open ended question to reveal the thoughts of the respondents regarding paint industry of Bangladesh. After preparation of the questionnaires, they were pretested using a small size of sample taken from Dhaka city. The reliability of the questionnaires was judged from the result of pretest. Coefficient alpha was used as a measure of internal consistency check for the questionnaires. 3.4 Field Survey Field Survey procedure was used to collect data from the primary source. The bases covered include customers (end users), dealers, retailers, painters and architect/developers. Furthermore, a panel of experts was consulted including experts in Chemical Engineering, Civil Engineering, Architecture, Marketing, Economics and Supply Chain Management. A brief list of the expert pool is provided in the appendix A. The purpose, information coverage and other requirements of the study were further reviewed and finalized after consultation by the Research Team with the Unitrend management. Obviously the study was national in nature and the sample size was large enough to be representative of different segments. The steps involved in conducting survey were including sampling design process, questionnaire preparation, fieldwork, and data preparation and analysis. 3.5 Fieldwork and Supervision The fieldworkers were trained thoroughly for carrying out the surveys effectively. The training included as to how to select respondents, introduce themselves to the respondents, ask questions, provide reinforcements to the respondents, record the responses etc. Fieldworkers were students of Department of Marketing from the Faculty of Business Studies of University of Dhaka. A member of the Research Team supervised the fieldwork. He monitored the activities of the investigators very closely, provided them support and motivation, and in some cases, took part in the field investigation. 4.1 Berger Paints Bangladesh Limited: An Overview Berger, the market leader in the Bangladesh paint market, is one of the oldest names in the global paint industry. It has its origin in the year of 1706 and from then on the company is operating with strong adherence to quality and social responsibility. Initially, Lewis Berger, a German national, founded dye pigment making business in England. Lewis Berger Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies uniform. Production of dyes pigments evolved into production of paints coatings, which till today, remains the core business of Berger. Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to be precise in 1950. In Bangladesh the major milestones of Berger Paints are given below: 1950 Started operation in Bangladesh by importing Paint from Berger UK 1970 Establishment of Chittagong Factory 1980 Named as Berger Paints (BD) Ltd. from Jenson Nicholson (JN) 1991 BMRE in Chittagong Factory 1995 Establishment of Double Tight Can Manufacturing Plant 1999 Establishment of Most Modern Sate-of-the-Art Paint Production Plant 2002 Construction of own building for the Corporate Office in Dhaka 2004 Establishment of Powder Coating Plant * Owns Corporate Office located in Dhaka * 2 Factories at Dhaka and Chittagong * 7 strategically located Sales Offices throughout the whole country. * A wide distribution channel reaches the whole country with a network of more than 1500 dealers 4.2 Vision and Mission of BPBL Berger emphasize highly on the ethical commitment to produce benchmark quality product. 4.2.1 Vision â€Å"We shall remain as the benchmark in the Paint industry by being an innovative and technology driven Company consistently delivering world-class products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.† 4.2.2 Mission â€Å"We shall increase our turnover by 100% in the next five years. We shall remain socially committed ethical Company.† 4.3 Area of Operation Berger Paints operates in three broad segments of the paint industry. 4.3.1 Decorative Paint * The objective is to beautify the surfaces with protection from corrosion and erosion * This business category mainly targets household segment offered to the consumers through a dealer network constituting major revenue earning business area of BPBL. * Products fulfill the aesthetic value of the consumers. 4.3.2 Industrial * Tailor made products to cater to the specific needs of customers. * Products give protection to the surfaces in extreme situations like severe hazardous environment, high temperature, movement of heavy materials and machinery etc. * Direct marketing approach is being used to promote the Industrial Coatings * Main customer groups: Garments Factories, Chemical Plants, Fertilizer Manufacturing Plants, Consumer Durable Manufacturing Plants etc. 4.3.3 Marine * Products are being offered mainly through direct marketing approach. * Dock Yards, Bangladesh Navy, Passenger Ships are the main user groups. * Market is mostly concentrated in Dhaka and Chittagong. 4.4 Manpower Structure It is consisted of more than 300 employees of whom about 160 are general workers and the rest are White Collar employees. These employees are working in different factories and depots of the company. The positional hierarchy of the company is as follows: 1. Managing Director 2. Director 3. General Manager (Executive -1) 4. Executive -2 5. Senior Manager 6. Manager 7. Assistant Manager 8. Officer (i, ii, iii, iv) / Management Trainee 4.5 SWOT Analysis The SWOT Analysis of Berger Paints is presented below: Strengths * Corporate image as pioneer in paint industry and one of the leading paint companies of the world * Wide distribution network * Rich experience on Bangladesh Paint Market * Presence in all major segments of the market * Strong financial base Weaknesses * Insignificant presence in the international satellite channels * Perceived as premium priced company at semi-urban and rural market * Higher dependence on large dealers * Consumers knowledge gap about paints painting system Opportunities * Growing market * Utilization of positive corporate * image for corporate diversification * To popularize economy products at remote market Threats * Fierce competition in the Bangladesh market * Credit-driven market * Strong command of few dealers in the market through sub-dealer * Unethical and corrupt practices by the local companies * Low priced imported products are entering due to trade liberalization 5.1 Existing Situation The paint market of Bangladesh comprises primarily with urban consumers as the rate of construction and decoration in urban areas is very high compared to that of the semi urban and rural areas. The mix of consumers in paint market encompasses with 80% urban consumers along with 12% semi urban as well as 8% rural consumers ( 5.1). The demand in the market can be categorized into 4 broader segments based on use Decorative, Industrial, Marine and Automotive paints. Decorative products are the used in households for beautification of buildings and interiors. This is the biggest among all segments. Industrial products have mainly two types of uses industrial raw materials and protective or maintenance. But in spite of the dual use, the segment is only 8% of the total demand. Demand for marine products are only 5% and for automotive paints, it is even lesser, only 3%. A detail of the product demand is endowed in 5.2. Decorative produ

Violence Chain :: Essays Papers

Violence Chain â€Å"Oh, hi Ahmed, how was the amusement park? Did you have fun?† he asked. â€Å"Yes I did,† I said with a surprising face; how could he ask me this question, when he just hit his son in front of me. Parent’s violence used to be normal in the United Arab Emirates. Parents used violence to teach their children. However, some parents still think that violence is the best way to teach children. These parents make the violence chain goes from one generation to another without stopping. Most of the children, who have been beaten up by their parents, suffer from many problems like they don’t having the ability to make friends, they lie, they fight, they drop of school, and much more. Parents who use violence don’t note that beating their children is the reason behind these problems; however, they continue beating them thinking that that will solve their children problems, which doesn’t, yet it makes them worse and worse. Once I had watched parent violence in front of my eyes, while it happened to one of my friends. He has been my friend for more than 4 years. We studied in the same school and we attended the same classes for these 4 years, so we were a real good friend. However, my story started in a beautiful weekend with not much homework. I and my friend decided to go to an amusement park near my house. This amusement park was considered as the biggest park in my country, so it has a lot of games. We usually go their from time to time, because there is nothing much going on in my city. Once we were there, we started to ride all games, and there were a lot. We were lucky that day because the park wasn’t crowded, so we didn’t have to wait in long lines. Riding games and enjoying the atmosphere took us the whole day, unfortunately we’ve forgotten about the time, when we should have been home at eleven pm. We forgot and returned at midnight. I didn’t think that it was a big deal, but when I looked at my friend face he was so worried and scared. I didn’t know why, so ask him â€Å"What’s wrong? Why do you look so worried?† But he didn’t answer he just said â€Å"Nothing, nothing wrong. Let’s just go back home,† so I just walked back with him to his home silently.

Nuclear Power Essay -- Energy

Nuclear power is a technology that has enormous benefits for humankind. As the demand for energy is only continuing to grow, it has become important to develop energy technology that has good yield and minimal negative side effects. After the harnessing of the atom for use in nuclear weapons, the knowledge of how to exploit the atom became incorporated in nuclear power plants (Corradini 1). These use uranium fuel in a process that releases tremendous amounts of energy to be captured, but also that creates minimal waste and other byproducts. Despite these, the benefits of nuclear energy outweigh any disadvantages, as seen by its high energy output, reliability, and minimal environmental impact when compared to energy sources such as fossil fuels. Due in large part to its high energy output, nuclear power is a feasible and practical technology for meeting the world’s energy needs. For example, global energy demand has been continually increasing, with a 66% growth between 1980 and 2007; this demand is expected to increase by 40% by 2030 (World-Nuclear.org). As a testament to nuclear power’s utility as an energy source, it currently provides a large amount of global electricity: nuclear power met 20% of the global demand of electricity as of 2008 (Abu-Khader). This power generation is spread across 30 countries and is a result of 436 nuclear power plants (Adamantiades). The 20% figure also represents the United States’ dependence on nuclear power for generating its electricity. France, however, has a drastically higher dependence on this type of energy source due to its economic practicality, relying on it to meet 80% of its electricity demand (Mufson). Other countries like France include: Lithuania, Slovakia, and Belgium... ...r. 2012. Adamantiades, A., and I. Kessides. "Nuclear Power for Sustainable Development: Current Status and Future Prospects." Energy Policy (2009). ScienceDirect. Web. 12 Apr. 2012. Connor, Steve. "Nuclear Power? Yes Please..." The Independent. The Independent, 23 Feb. 2009. Web. 2 Apr. 2012. Corradini, Michael. "Nuclear Energy." World Book Student. Web. 12 Apr. 2012. Mufson, Steven. "Nuclear Power Primed for Comeback." The Washington Post. The Washington Post, 8 Oct. 2007. Web. 3 Apr. 2012. Niiler, Eric. "Is Thorium the Future of Nuclear Power?" MSNBC.com. MSNBC, 07 Oct. 2011. Web. 04 May 2012. Reiss, Spencer. "Face It. Nukes Are the Most Climate-Friendly Industrial-Scale Form of Energy." Wired Magazine. Condà © Naste, 19 May 2008. Web. 3 Apr. 2012. "World Energy Needs and Nuclear Power." World-Nuclear.org. World Nuclear Association, Dec. 2011. Web. 5 Apr. 2012. Nuclear Power Essay -- Energy Nuclear power is a technology that has enormous benefits for humankind. As the demand for energy is only continuing to grow, it has become important to develop energy technology that has good yield and minimal negative side effects. After the harnessing of the atom for use in nuclear weapons, the knowledge of how to exploit the atom became incorporated in nuclear power plants (Corradini 1). These use uranium fuel in a process that releases tremendous amounts of energy to be captured, but also that creates minimal waste and other byproducts. Despite these, the benefits of nuclear energy outweigh any disadvantages, as seen by its high energy output, reliability, and minimal environmental impact when compared to energy sources such as fossil fuels. Due in large part to its high energy output, nuclear power is a feasible and practical technology for meeting the world’s energy needs. For example, global energy demand has been continually increasing, with a 66% growth between 1980 and 2007; this demand is expected to increase by 40% by 2030 (World-Nuclear.org). As a testament to nuclear power’s utility as an energy source, it currently provides a large amount of global electricity: nuclear power met 20% of the global demand of electricity as of 2008 (Abu-Khader). This power generation is spread across 30 countries and is a result of 436 nuclear power plants (Adamantiades). The 20% figure also represents the United States’ dependence on nuclear power for generating its electricity. France, however, has a drastically higher dependence on this type of energy source due to its economic practicality, relying on it to meet 80% of its electricity demand (Mufson). Other countries like France include: Lithuania, Slovakia, and Belgium... ...r. 2012. Adamantiades, A., and I. Kessides. "Nuclear Power for Sustainable Development: Current Status and Future Prospects." Energy Policy (2009). ScienceDirect. Web. 12 Apr. 2012. Connor, Steve. "Nuclear Power? Yes Please..." The Independent. The Independent, 23 Feb. 2009. Web. 2 Apr. 2012. Corradini, Michael. "Nuclear Energy." World Book Student. Web. 12 Apr. 2012. Mufson, Steven. "Nuclear Power Primed for Comeback." The Washington Post. The Washington Post, 8 Oct. 2007. Web. 3 Apr. 2012. Niiler, Eric. "Is Thorium the Future of Nuclear Power?" MSNBC.com. MSNBC, 07 Oct. 2011. Web. 04 May 2012. Reiss, Spencer. "Face It. Nukes Are the Most Climate-Friendly Industrial-Scale Form of Energy." Wired Magazine. Condà © Naste, 19 May 2008. Web. 3 Apr. 2012. "World Energy Needs and Nuclear Power." World-Nuclear.org. World Nuclear Association, Dec. 2011. Web. 5 Apr. 2012.

Advertising Essays -- essays research papers

ADVERTISING: RIGHT OR WRONG   Ã‚  Ã‚  Ã‚  Ã‚  The largest money-making industry in the United States today is advertising. During events such as the Super Bowl, companies pay large sums of money in return for thirty seconds of air time. Advertising is the act of promoting a product by informing the public of the products worth. Whether it be television, radio, or newspapers, companies must find a distinct name and phrase that one can associate with their product; nonetheless, people often take offense to these names and phrases. People claim that often times these product names promote racial stereotypes and racial disunity. While some people may take offense to the name of the product as well as the way companies go about selling their product, the First Amendment undermines these offenses by allowing all Americans to have the right to freedom of expression. Companies do not, however, have the right to choose any name or phrase for their product. Various government agencies set strict limits on what can and what cann! ot be done by the advertising industries. By realizing that advertising is the practice of one’s First Amendment right, as well as knowing the rules for advertising, one can conclude that advertising does not promote racial disunity or racism.   Ã‚  Ã‚  Ã‚  Ã‚  The purpose of the First Amendment is to allow American’s the freedom to express how they feel; therefore, advertising is simply a practice of this right. If groups do not lik... Advertising Essays -- essays research papers ADVERTISING: RIGHT OR WRONG   Ã‚  Ã‚  Ã‚  Ã‚  The largest money-making industry in the United States today is advertising. During events such as the Super Bowl, companies pay large sums of money in return for thirty seconds of air time. Advertising is the act of promoting a product by informing the public of the products worth. Whether it be television, radio, or newspapers, companies must find a distinct name and phrase that one can associate with their product; nonetheless, people often take offense to these names and phrases. People claim that often times these product names promote racial stereotypes and racial disunity. While some people may take offense to the name of the product as well as the way companies go about selling their product, the First Amendment undermines these offenses by allowing all Americans to have the right to freedom of expression. Companies do not, however, have the right to choose any name or phrase for their product. Various government agencies set strict limits on what can and what cann! ot be done by the advertising industries. By realizing that advertising is the practice of one’s First Amendment right, as well as knowing the rules for advertising, one can conclude that advertising does not promote racial disunity or racism.   Ã‚  Ã‚  Ã‚  Ã‚  The purpose of the First Amendment is to allow American’s the freedom to express how they feel; therefore, advertising is simply a practice of this right. If groups do not lik...

Analyse the Political Implications of Concentrated Media Ownership and Control Essay

The media is primarily used to disseminate information. It is a platform for communication between the people and those who hold authority. In today’s world the media has an immense role in the functioning of society and has the ability to reach a mass audience through technologies such as print, Internet, television, film and radio. There has been increasing concern over the growing concentration of media ownership as well as how this increased media control influences and shapes democracy. Concentrated media ownership refers to the number of individuals or corporations who control an increasing share in the mass media market, which at present is very few. For example, eleven out of twelve major Australian Newspapers are owned by Rupert Murdoch’s News Corporation or John Fairfax Holdings (Independent Australia, 2011). Society has seen media moguls, such as Rupert Murdoch, dominate cross-media ownership with companies in print, television, film etc. The media and politics are closely intertwined and with an increase in concentrated media ownership and control, issues such as political bias; the trivialisation and sensationalism of political issues in the pursuit of profits; and the decreasing amout of editorial diversity and expression, have become issues of concern for the consumers of this mass media. Street describes bias as â€Å"the idea that the practices of journalists and editors result in articles and programmes that favour one view of the world over another, providing sustenance for one set of interests while undermining an alternative† (Street, 2011). Bias is a large issue within all media, and authorities enforce a myriad of regulations and restrictions on media corporations to try and eliminate it. With an increase in media concentration, and the power that the media yields, eliminating political bias within the media has become an important issue. Since most of the media institutions are owned by corporations, such as Rupert Murdoch’s News Corporation, the most common assumption is that the media as a whole may be influenced by its owners. For instance, there are times when the owners’ decision may affect the kind of information that media would disclose to the public. Wagner makes the point that â€Å"the news media distribute much of the information we receive about the world around us. Thousands of politicians, policy researchers and opinion makers wish to transmit information to the public at large. The news media serve as intermediaries in this information market, selecting to transmit a fraction of the millions of potential messages to an audience† (Wagner, 1997). For example, Rupert Murdoch’s Fox News channel was been criticised for its right-tilted news coverage. Murdoch has always been seen to favour the conservative side of politics and the Fox News channel has been seen to show preference toward the Republican Government in America. Fox Founder and president Rodger Ailes was a republican political operative in Washington. He helped with The Nixon and Reagan campaigns as well as the elder Bush’s media strategy for his presidentiary campaign in 1988 (Ackerman, 2001). David Asman, The Fox News Channel’s daytime anchor was known for his association with the right- wing Wall Street Journal. Another anchor for Fox News, Tony Snow, was a conservative columnist and also the chief speechwriter for the first bush administration (Ackerman, 2001). The Fox News Channel also hosted employees and presenters such as Eric Breindel, John Moody and Bill O’Reilly, all of whom were known for their conservative, right wing views (Ackerman, 2001). Rupert Murdock stated, â€Å" â€Å"I challenge anybody to show me an example of bias in Fox News Channel. (Ackerman, 2001) However, looking at the individuals that were in charge of disseminating the news at Fox, it is hard to believe that none of the political stories covered by Fox did not favour the more conservative side of American politics. Media conglomerates, such as News Corporation, have the ability to sway public opinion and with the increasing control they have access to, it is naive to think that they would not use this power to influence and sway public opinion to fit with their own agendas and ideologies. The size of the enormous media firms of today exceeds the size of the largest firms fifteen years ago by a factor of ten. (McChesney, 1999). With this increase in the size of the major media corporations also comes the increased pursuit of profits by these firms. Sometimes, this pursuit of profit can be to the detriment of information and in turn democracy. Corporations look for stories that will attract and entertain readers and viewers, sometimes neglecting stories that hold high information content and reflect political policies and agendas. McChesney refers to this need to aximise profits when he states â€Å"With the tremendous pressure to attract audiences but to keep costs down and not take chances, the standard route of the media giants is to turn to the tried and true formulas of sex and violence, always attention getters† (McChesney, 1999, p34). With the increased emphasis on profit maximisation and the commercialisation of news media, there is a risk that consumers of news media will cease to have access to information regarding smaller issues in society such as local political policy/s and other more localised issues. Because these issues are small and aren’t seen as revenue earners, or important issues, they may be sacrificed to make way for big stories and scandals. In other words, profit and revenue may become more important, in the eyes of media conglomerates, than information. The pure size of the media and its influence over information has huge impacts on democracy and politics. Meier (2011) sites Giddens in his work. Giddens talks about the trivializing of political issues and personas and states â€Å" The media†¦ have a double relation to democracy. On the one hand †¦ the emergence of a global information society is a powerful democratising force. Yet, television, and the other media, tend to destroy the very public space of dialogue they open up, through relentless trivializing, and personalizing of political issues. Moreover, the growth of giant multinational media corporations means that unelected business tycoons can hold enormous power† (p 298). In essence, Giddens is stating that while news media and media corporations may broadcast political issues and policies, these views are somewhat destroyed with the constant emphasis on the politicians themselves. Because of this a great deal of emphasis is taken away from the real political issues. An example of this is the constant criticism of Julia Gillard and her lifestyle. For example, she is an unmarried woman; her partner is a hairdresser. There is also constant evaluation of her hairstyle, wardrobe, her figure and her voice. Gillard is constantly known for stabbing Kevin Rudd in the back. She has also been portrayed as untrustworthy as well as a liar. Instead of the media evaluating and critiquing her policies and looking critically at her as a leader, we see the media sensationalising the above trivial issues instead of concentrating on what she is doing for the country politically. As Media concentration and control increases, diversity of expression decreases. In all healthy democracies, a wide range of assorted opinions are offered, and media offer a large variety of different positions, values and biases. No individual is obliged to accept any particular position or argument, but they are encouraged to have put their own views and criticisms forward. The core problem that comes with media concentration is that it diminishes ideological diversity within the media system. Studies have been conducted that show that although there may be more media outlets, there is not necessarily more information or diversity in media. â€Å"Rather than the new platforms leading to a diversity of voices, voices are in fact being snuffed out†¦ An analysis of independent media showed that 96 per cent of stories simply came from recycling stories found in the mainstream press. However, The study also showed that the mainstream press was producing 73 percent less information than 10 years ago† (independent Australia, 2011). Curran states that â€Å"they can use their financial power to drive new entrants out of the marketplace by launching expensive promotional campaigns, offering discounts to advertisers or buying up key creative personnel† (Curran, 2005) Because of the increased power of media corporations, they have the ability to eliminate their competition and therefore decrease the amount of diversity available to the consumer. Robert W. McChesney outlines in his book Corporate Media and the Threat to Democracy that there are three factors that allow democracy to work at its best. The first is â€Å" it helps when there are not significant disparities in economic wealth and property ownership across the society† (1997, p5). The second requires there to be â€Å" a sense of community and a notion that an individuals well- being is determined to no small extent by the community’s well-being† (1997, p5). Finally McChesney states â€Å"democracy requires that there be an effective system of political communication† (1997, p5). Media concentration and control works to the detriment of each of these factors. Firstly the multi billion dollar media corporations, do not represent economic equality within the society, in fact they help to make the gap between the working classes and authority increase. Media concentration disputes McChesney’s second factor as media moguls and corporations have become increasingly focused on the pursuit of large profits and personal gain, and are not heavily influenced around society’s wellbeing. Finally, an effective system of political communication should be based around diversity of news coverage and diversity of political issues, both locally and nationally, large and small. However, with the increasing size of corporations the diversity of expression has steadily decreased. Australia has one of the highest media concentrations in the free world. With the increasing control held by mass media conglomerates various political issues arise such as political bias; the trivialisation and sensationalism of political issues in the pursuit of profits; and the decreasing amount of editorial diversity and expression. The above issues threaten democracy and the media must be regulated and controlled before it threatens how the political system in Australia functions. Governments need to manage media moguls, such as Rupert Murdock before they gain too much power, and control, over political issues and coverage. The key to a democratic society is freedom of information, positive political debate and communication. These key functions of a democratic society are being threatened by concentrated mass media and the increasing control held by these corporations.

HRM Compensation

Definition:Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.Compensation is based on:Market research about the worth of similar jobs in the marketplace, employee contributions and accomplishments, the availability of employees with like skills in the marketplace, the desire of the employer to attract and retain a particular employee for the value they are perceived to add to the employment relationship, andThe profitability of the company or the funds available in a non-profit or public sector setting, and thus, the ability of an employer to pay market-rate compensation. Compensation also includes payments such as bounces, profit sharing, over time pay, recognition rewards and checks, and sales commission. Compensation can also include non-monetary perks such as a company-paid car, stock options in certain instances, company-paid housing, and other non-monetary, but taxable, income it ems.ADVANTAGES OF COMPENSATION & BENEFITSA well designed compensation and benefits plan helps to attract, motivate and retain talent in your firm (which is myWear). A well designed compensation & benefits plan will benefit your boutique in the following ways. 1. Job satisfaction: Your employees would be happy with their jobs and would love to work for you if they get fair rewards in exchange of their services. 2. Motivation: We all have different kinds of needs. Some of us want money so they work for the company which gives them higher pay. Some value achievement more than money, they would associate themselves with firms which offer greater chances of promotion, learning and development.A compensation plan that hits workers’ needs is more likely to motivate them to act in the desired way. 3. Low Absenteeism: Why would anyone want to skip the day and watch not-so-favorite TV program at home, if they enjoy the office environment and are happy with their salaries and get what t hey need and want? 4. Low Turnover: Would your employees want to work for any other boutique if you offer them fair rewards. Rewards which they thought they deserved?Advantage to Your Employees: 1. Peace of Mind: your offering of several types of insurances to your workers relieves them from certain fears. Your workers as a result now work with relaxed mind. 2. Increases self-confidence: Every human being wants his/her efforts to get acknowledgment. Employees gain more and more confidence in them and in their abilities if they receive just rewards. As a result, their performance level shoot up. Types of Compensation:This includes:Direct financial compensation consisting of pay received in the form of wages, salaries, bonuses and commissions provided at regular and consistent intervals Indirect financial compensation including all financial rewards that are not included in direct compensation and understood to form part of the social contract between the employer and employee such as benefits, leaves, retirement plans, education, and employee services Non-financial compensation referring to topics such as career development and advancement opportunities, opportunities for recognition, as well as work environment and conditions Examples of Financial vs Non-Financial CompensationCompensation can also be categorized as:Base Compensation Variable Compensation Supplementary Compensation Base Compensation and BenefitsBase Compensation is one type of Compensation. It refers to the basic salaries and wages given to he employees. It is normally constant at a given amount irrespective of the difference in work performance. Factors influencing Base Compensation and Benefits One factor that influences Base Compensation is demand and supply of labor in the market. Labor union pressure is also another factor influencing Base Compensation. This is because unions always try their best to fight for their members’ rights. Nature of job as determined by the job description , each employee deserves a different compensation package.Size of the organization and its ability to pay its employees. Product market compensation is yet another factor influencing Base Compensation. Psychological and social factors like employee satisfaction and security. Salaries paid by similar firms are also a factor affecting Base Compensation. Government policies on wage determination Cost of living of the employees. When the employees’ cost of living is very high then they need a higher compensation benefit. Increase in productivity of labor Firms in general; whether competing firms or not.Variable Compensation and BenefitsThis type of compensation as by its name is variable. It means that one gets compensation as per the work done. If one does a remarkable job then he or she deserves a higher compensation package than one whose work is of poor quality. Supplementary Compensation and Benefits Supplementary Compensation is compensation given by an employer when he or she wishes to. It is not compulsory or a routine once one is given the compensation that one will be awarded another time. In this type of Compensation the employer has a right to add, deduct or even withdraw the benefits when he or she wishes to.Compensation AdministrationThe Compensation Administration Department is charged with the task of developing and maintaining a comprehensive compensation and classification system in order to support the mission of the Division of Human Resources.The Compensation Administration Department’s responsibilities include: Developing compensation programs, policies, and procedures to meet the needs of the University administrators as they attract, retain, motivate, develop, and organize their diverse workforce. Ensuring compliance with federal and state compensation laws, statutes, and regulations, Balancing the need for internal equity while recognizing the desire to be market competitive.Evaluating positions consistently and classifying t hem into appropriate job titles ensuring that they are internally equitable, while recognizing the need to be market competitive. Developing and maintaining the classification and compensation structures. Some of the services provided by the Compensation Administration Department include: Providing compensation related information, tools and training to HR Liaisons and University Administrators.Conducting salary surveys and gathering market data to assist University Administrators in making informed salary decisions. Advising HR Liaisons and University Administrators in compensation matters; including establishment of new positions, promotions, transfers, demotions, reorganizations and salary increases. Providing current position descriptions to administrative and staff employees. Providing departments with Organizational Charts. Assisting in departmental re-organizations.Job Evaluation ProcessThis process refers to all components of the university's formal pay program. The staff em ployee's pay at Case results from the following: A. How are jobs evaluated? The job evaluation process established the relative value of jobs throughout the university. There are two steps involved in this process: 1. Job Analysis and Job Description – Using a â€Å"job profile,† the content of each job is analyzed to identify key duties, responsibilities, and qualification necessary to perform the job.Written job descriptions are then prepared to contain this information. 2. Job Evaluation – A computer assisted job evaluation plan, measuring 17 dimensions of nonexempt work and 28 dimensions of exempt work, is used to evaluate the relative worth of staff positions. This evaluation process focuses on valuing the content of each position in terms of a series of well-defined compensable factors.The factors for clerical, service, technical, and administrative support positions include:a. Knowledge: Minimum required level of specialized training, education, and previ ous related work experience.b. Skill: The manual and physical skills required to perform the duties of the position.c. Work Complexity: The degree and amount of judgment, initiative and ingenuity involved in accomplishing work.d. Contact with Others: The extent to which the work entails dealing with others in the course of one's regular duties, including the frequency and nature of contacts and the likely results of such contacts.e. Property Protection and Use: The extent to which the position has responsibility for university property, including funds, vehicles and confidential information.f. Work Leadership: The responsibility for directing, instructing and training personnel; and for planning controlling and assigning work.g. Working Environment: The physical conditions encountered during a typical work day. Conditions such as heat, cold, dirt, fumes, hazards, etc. are considered.h. Student Relations: The responsibility for dealing with students, including the nature and frequenc y of contacts. The factors for professional, administrative, and managerial positions include responsibility for:i. Programs, Projects or Operations: The level in the organization, scope of activities performed, parameters of authority, complexity or nature of responsibilities, and the minimum credentials required to perform the job upon hire.j. Supervision: The number and variety of employees supervised.k. Employee Relations: Promoting and maintaining satisfactory human relations, morale and effectiveness or subordinates.l. External Contacts: Personally dealing with individuals or organizations outside the university.m. Internal Contacts: Personally dealing with individuals within the university, but outside the direct line of authority of the position, to coordinate activities and task accomplishment.n. Investigation or Fact Finding: Activities undertaken to identify facts, and develop ideas, designs or processes.o. Scheduling, Planning and Forecasting: The complexity, variety and nature of the activities involved in determining and carrying out plans and reports.p. Establishing Objectives, Policies, Standards, Procedures, and Practices: The degree of authority to establish standards, and the scope, nature and complexity or these standards.q. Effects of Decisions: Making decisions and commitments which impact the university's resources.r. Student Relations: Personally dealing with students from routine exchanges of information to more complex activities such as counseling. At the conclusion of the job evaluation process, the compensable factors are weighted. A numerical total is then derived and each position is assigned a salary grade which has a salary range A salary range consists of a: MINIMUM: The lowest wage paid to a new employee with limited or no experience in this specific position. MIDPOINT: The â€Å"market† (or average) wage paid to one who is fully qualified. MAXIMUM: The highest wage paid for jobs in the salary grade.Each salary range h as different jobs, e.g. Clerk and Grounds Worker, because they have the same relative value as determined by job evaluation. Salary ranges (link to lastest Salary Structures for Staff) intentionally overlap from one grade to another. Fully qualified incumbents in a lower salary grade may be at the high end of their salary range, while the salary of a less experienced employee in a higher salary grade may be near the minimum of the range. It is thus possible that the salary of an experienced incumbent in a lower rated position will be the same as or more than the salary of an inexperienced incumbent in a higher rates position.B. How do we establish competitive salaries? Salary surveys are conducted annually and analyzed to establish and maintain competitive pay levels with all the markets in which the university competes and recruits, as summarized in the following exhibit. SURVEY SOURCES Employee GroupMarket Salary Surveys A. Exempt1. Department Head and Above National Customized su rveys with data form selected private research universities2. Below Department Head Regional Customized surveys with data from selected private research universities3. Entry Level Local Local surveys for service employees and salary data from the College Placement Association B. NonexemptAll Jobs LocalLocal surveys of selected manufacturing and service employers (banks, insurance, health care, etc.) Specialized surveys as needed for specific jobs, e.g. plumbers, radiation technicians, etc. This market data is correlated with the job evaluation results and salary ranges are established. These ranges are then periodically reviewed and adjusted to reflect changes in the marketplace. C. How are salaries determined? Starting salaries of new hires are normally placed within the first quartile of the salary range but occasionally may go up to the range midpoint to accommodate special recruiting needs. Salary progression in the range occurs over time, based on the salary budget and employee performance. Subsequent to employment, salaries normally change as a result of a promotion, an annual merit increase or an adjustment to maintain equity.Executive compensationExecutive compensation (also executive pay), is composed of the financial compensation and other non-financial awards received by an executive of a firm. It is typically a mixture of salary, bonuses, shares of and/or call options on the company stock, benefits, and perquisites, ideally configured to take into account government regulations, tax law, the desires of the organization and the executive, and rewards for performance.The three decades starting with the 1980s, saw a dramatic rise in executive pay relative to that of an average worker's wage in the United States,and to a lesser extent in a number of other countries. Observers differ as to whether this rise is a natural and beneficial result of competition for scarce business talent that can add greatly to stockholder value in large companies, or a soci ally harmful phenomenon brought about by social and political changes that have given executives greater control over their own pay. Executive pay is an important part of corporate governance, and is often determined by a company's board of directors.Executive compensation is not only a consideration close to the pocket book of CFOs but also a topic of increasing importance to managements and boards. As major economies show signs of recovering from the 2008 recession, compensation can become more decisive to retaining and motivating critical senior executive talent. But, executive compensation also continues to be scrutinized by major investors, proxy advisory firms and increasingly regulators – given the losses incurred by shareholders over the last couple of years.Thus, companies will have to critically review their existing compensation plans and how they adapt these plans for a changing economy. CFOs can play a critical role in framing the financial impacts of compensatio n plans and influencing the public perception of these plans. This CFO Insights article lays forth some critical considerations for CFOs. Executive Compensation: Components and Trends Executive compensation generally consists of a mix of four components: Annual base salary Annual incentive or bonus plan generally tied to short-term performance measures Long-term incentives consisting of a mix of restricted stock, stock options and other long-term performance plans tied to total shareholder return or financial performance Benefits plan.Compensation and The Role Of CFOWith the changes in the environment around the structure of executive compensation, companies are likely to adopt much more transparent compensation processes. We expect CFOs may play a more active role in implementing these processes, especially in four critical areas: 1. Pay for performance: CFOs can help shape pay for performance structures by getting to know shareholders’ expectations through their interaction s with analysts and major investors. This helps ensure that the company’s performance metrics reflect those expectations when shaping short- and long-term compensation plans. CFOs are also instrumental in shaping business-unit compensation and ensuring unit-level performance metrics are rigorously set and support the achievement of overall company financial metrics.2. Financial discipline: It’s important for CFOs to focus on what is affordable, albeit striking a balance with what is competitive. CFOs, even while struggling with the budget and trying to project out earnings for the next two or three years, should establish acceptable limits on compensation in terms of its dilutive effect on earnings. At the business unit level, CFOs can also establish better financial discipline and controls. They are especially capable of identifying how units may structure budgets that coax the best possible performance out of business unit leaders.3. Risk and internal controls: As ex ecutive compensation plans are key to attracting, retaining and motivating talent, CFOs should establish a rigorous process to understand how incentives influence employee behavior, how those behaviors aggravate risk and what steps or controls should be put in place to minimize the risk. Some examples include proper selection of incentive metrics, stress testing potential payouts under various performance scenarios and implementing additional internal controls, as needed to minimize the risky behavior. 4. Bridging the information gap: Aside from managing risk, CFOs could spend considerable time with both the audit and compensation committees to bridge the potential knowledge gap on compensation and financial performance.One example is how to best treat unusual or non-recurring items when calculating incentives. The audit committee is likely to have an in-depth understanding of these items, whereas the compensation committee more fully understands the impact such adjustments may have on incentive plans. The CFO can help link the two committees in helping decide which adjustments, if any, should be made for incentive plan purposes.