Internet Addicition Essay Example for Free

Internet Addicition Essay Much evidence has been alleged that social pathologies are beginning to surface in cyberspace (i.e., internet addictions). A lot of controversy is surrounding the question, is there proof that the internet is being abused and misused by individuals on an everyday basis and should we consider this to be a major mental health problem? Key Arguments: * Why do people have attachment insecurity and dissociation with their lives to make them choose to be disorganized, and allow a fantasy world to take over resulting in problematic internet abuse. * How information and communication technologies changing our way of interacting with reality. * What are the psychological symptoms involving disturbed relationships with technologies emerging, how some are more affected than others. * How different forms of related dependence behaviours, such as an addiction to social networking, cybersex, online gambling, or web-based role-playing games are affecting our need to be on the internet. * How some games reward achievements and goals making the cyber game goals more important of that than reality goals. * Does social media, such as Facebook, Twitter, Myspace and other forms of cyber communication have detrimental effects related to internet addiction. * Internet Gambling, main reasons for internet addiction, however not just costing their health but impacting finances and crippling family relationships. Critical Analysis Article 1: Reference (2) Researchers have begun to examine the personal and social consequences associated with excessive online involvement. The present study examined college students problematic Internet use (PIU) behaviors Its specific aim was to investigate the links between PIU with both internalizing (depression, social anxiety) and externalizing (substance use and other risky behaviors) problems. Article 2: Reference (4) There are many psychological factors surrounding the present issue of internet addiction, using evidence such as Social Networking Sites (SNS)e.g., facebook , twitter etc, Massive Multiplayer Online games and Internet Gambling as my three key topics. The aim is to provide a clear and concise method about how individuals who consistently spend their time on the internet are having detrimental effects on their physical, social and psychological life. Article 3: Reference (5) There is an increasing need for the provision of both internet addiction prevention and care for any sufferers, psychologist should be weary of the dangers of internet abuse when youth present with anti-social, aggressive behaviours. Socialization in girls may be warped towards online contact and the user may beneï ¬ t from providing alternatives. The aim is to focus on internet-related addictive behaviours and how to include the use of suitable diagnostic tools, a detailed personal interview, a mental health status examination and information regarding the overt behaviours gathered by the surroundings. I want to engage the reader to believe that internet addiction is a real mental health issue, that effects youth all the way to late adolescent, whether it be an addiction though games, gambling, social media etc, there is evidence to say that individuals influenced by this addiction are not progressing in life, because excess use of a cyber world has become a major part of their li ves or taken over their lives. Structure: – Evidence addiction in Video Games (Kuss, Daria J; Griffiths, Mark D. Studies): Main conclusions stemming from this source – Psychological Evidence to Addiction (Griffiths, M Study Gencer, S L Koc, M Study): Main conclusions stemming from this source – Evidence addiction to Social Networking Systems (Kittinger, R., Correia, C J., Irons J G Article): Main conclusions stemming from this source References Bozkurt, H; Coskun, M; Ayaydin, H; Adak, I; Zoroglu, S S (2013). Prevalence and patterns of psychiatric disorders in referred adolescents with Internet addiction. Psychiatry and Clinical Neurosciences. 67(5), pp. 352-359. De, L., Josepth, A. (2013). Problematic Internet Use and Other Risky Behaviours in College Students: An Applicationof Problem-Behaviour Theory. Psychology of Addictive Behaviors, 27(1), pp. 133-141. DOI: 10.1037/a0030823. Gencer, S L Koc, M. (2012) Internet abuse among teenagers and Its relations to internet usage patterns and demographics. Journal of Educational Technology Society. 15(2), pp. 25-36. Griffiths, M. (2010). Internet abuse and Internet addiction in the workplace. Journal of Workplace Learning, 22(7), 2010, pp. 463-472. Kittinger, R., Correia, C J., Irons J G (2012) Relationship Between Facebook Use and Problematic Internet Use Among College Student. Cyberpsychology, Behavior, and Social Networking. 15(6), pp. 324-327. Kuss, D J; Griffiths, M D., In ternet video game addiction: A systematic review of empirical research in the literature. Revue Adolescence. 30(1), 2012, pp. 17-49.

Effect of Foreign Direct Investment in the Retailing Sector

Effect of Foreign Direct Investment in the Retailing Sector The effect of foreign direct investment in the retailing sector  on the economy of Russia Abstract Following the dramatic, although sometime erratic growth of the retail sector in Russia, this paper provides an insight into the growth of this sector of the Russian economy, particularly concentrating upon the impact of foreign direct investment. As part of this process the research studies the potential benefits that are available to the foreign corporation together with the difficulties that making such an investment can experience. It is concluded that, providing Russia maintains a democratic political structure and can eliminate the adverse elements of their current system, such as corporate crime, the country provides an attractive market for retail globalisation, which will continue to benefit the Russian economy. Executive Summary Since the barriers of communism have been eradicated and a capitalist structure introduced, the Russian retail sector has experienced significant growth. As this report shows, much of this has been achieved through the relaxation of the Russian approach to foreign direct investment. From the research conducted for this paper it can be seen that FDI has contributed significantly to the present growth levels being experienced in Russia. Nevertheless, upon analysis of the benefits and disadvantages that face an international retailer wishing to take advantage of this emerging market place, it has been found that there are issues that need to be addressed if the current level of growth is to be sustained in the future. There is little doubt that, with the size of its consumer population and the continuing level of demand for western products, that Russia represents a major new market for the international retailer corporation. As revealed within this paper those who have already established outlets within this market place have already created a competitive advantage for their businesses. The report finds that there are some significant difficulties that still exist, which create a level of reluctance with new entrants. Most of these are based upon the demographic spread of the population, together with the cost of entry that is increased as a result of the current tax and regulatory regime. Similarly, the current domestic retailers are, in some instances, showing reluctance to participate in proposed mergers or takeovers. Whilst this low level of entry from external firms continues, the domestic retailers are also taking advantage of the situation by consolidating their own position within the market. This is being done by way of mergers and also by using the Western concept of retailing and extending their reach and coverage, not only through the main towns and cities, but also throughout the more rural areas. In reality, if they maintain these strategies, it will only serve to further increase the cost of entry to external firms and, from the FDI view, this would further delay their ability to benefit from the available market share. Therefore, we would suggest that two issues be addressed. That, if they wish to be active players in the increasing Russian retail market, the should evaluate whether the cost of immediate entry outweighs the potential loss of future competitive advantage. In respect of the Russian government, it is suggested that there should be consideration given to incorporating a more level of tariffs that is more in line with international standards, thereby increasing the attractiveness of their retail markets to foreign organisations. This is particularly important as they are also competing against other emerging countries and, if they want to benefit from the available investment, like the corporate retailers, they need to consider the advantage of early entry. Table of Contents Abstract Executive Summary Table of Contents List of Tables List of Figures List of Figures Chapter 1: Introduction 1.1 Motivation for the research 1.2. Aims and objectives 1.3 Overview Chapter 2: Literature Review 2.1 Russian change to capitalism 2.2 The Russian Retail Sector 2.3 Foreign Investment in Russia’s Retail sector 2.4 Summary Chapter 2: Methodology 2.1. Research method 2.2. Research material choice 2.3. Research performance Chapter 3: Findings and Analysis 4.1 Russian retail sector 4.2 Foreign Direct Investment 4.3 Problems and benefits to FDI 4.4 Advantages of FDI to Russian Retail Sector Chapter 6: Conclusion Bibliography Books Journals List of Tables Table 2 FDI in emerging countries in Europe Table 3 Russian major retailers. Table 3 FDI levels 2006-2007 Table 4 Potential FDI retail entrants List of Figures Figure 1 Russian retail growth Figure 2 Breakdown of retail sales Figure 3 Russia Hot Drink sales Figure 4 retail sales 2005 Chapter 1: Introduction 1.1 Motivation for the research Since the Russian political environment changed in the early 1990’s from the closed communistic approach to the more open capitalist format, which has allowed for the involvement of external financial institutions and corporations, the country’s economy has undergone a dramatic evolutionary process. As a result of this change, and notwithstanding the severe difficulties experienced in 1998, the Russian economy has achieved a remarkable pattern of growth over the past two decades. Nowhere has this growth factor been more noticeable that in the country’s retail sector, which according to recent research (RNOS 2006) has seen a recent growth of 30.8%, of which the food sector itself accounted for 22%. The same report forecasts a dramatic increase on these figures by the end of 2008, with food sector growth expected to double. However, such a dramatic increase in the rate of growth experience could not have been achieved solely by the privatisation of the internal marketplace. As with the economies of other emerging capitalists markets the Russian retail sector has attracted the attention of international corporate players, who have shown an interest in opening outlets in places like Moscow so that they can gain a significant share of the extremely large Russian consumer market. Many international corporations have already established a presence in this marketplace and other corporations such as the American giant Wal-Mart are seriously discussing projects that help them gain entry to this sector of the Russian economy. 1.2. Aims and objectives The purpose of this paper is to evaluate what effect this FDI[1] by external corporations has had upon the Russian retail sector. In conducting this research the objectives are to: To provide a better understanding of the economic forces that currently operates in the Russian retail sector. To evaluate the benefits and difficulties experienced by foreign corporations that have already established a presence in the Russian retail sector. To provide an indication of the issues that corporation intending to invest in the Russian retail economy will need to consider. To evaluate the impact that FDI has on the Russian Retail market It is intended that this paper will add to the existing literature available on the issues raised and provide an indication of areas whether further research needs to be considered. 1.3 Overview Following on from this introduction a review and evaluation of the current available literature relating to the issues raised will be conducted in chapter two. In chapter three the methodology for our research is explained in detail and this is followed by an analysis and discussion of the findings of that research. Chapter five concludes the paper and includes appropriate recommendations as well as indications of where the authors feel that further research on the subject may be beneficial. Chapter 2: Literature Review Within this literature review it is the intention to provide an understanding of the historical growth of the Russian retail sector economy since the capital free-market approach was adopted. As an integral part of this review will concentrate upon the political structure and how this differs from that of more developed countries, such as the UK and US. Furthermore, this chapter will review research that has previously been conducted in respect of the external organisations that have already began to operate within this sector of the Russian economy, outlining the experiences that they have had working within this relatively new capitalist environment. 2.1 Russian change to capitalism Following the collapse of communism in the late 1980’s, Russia began the slow steps towards building a free market economy, and this has caught the attention of numerous academic writers and observers. Many researchers, such as Dyker (2004), Medvedev (2000) and Gustafon (2001), have commented upon the fact that in the initial stages this free-market development was hampered by the continuing power struggle that was still taking place between the old hardliners and the new democratic factions. However, when Yeltsin defeated the attempted coup in 1992, power was finally wrestled from the central politicians and the process of conversion to capitalism could and did begin (Medevdev 2000, p.11). This forward move to a capitalist structure was reinforced in the same year by the â€Å"de-controlling† of prices (Gustafon 2001, 10). However, like fledgling free market economies, in the early stages of development the transition bought with it some difficulties. One of the major difficulties was the financial problem resulting from falling output. A Dyker (2004, p.5) and Granville and Oppenheimer (2001, p.3), comment in their research, it was expected that the transition would be â€Å"weak†, and they have expressed some surprise that the West â€Å"despite their expertise on communist regimes,† as Granville and Oppenheimer (2001, p.3) comment, were not prepared for this event. Others have also commented upon the levels of dishonesty in those early years. In Vadim Volkov (2002, p.3 and p.10) study of the Russian Mafia and organised crime, he reveals that there was a significant rise in business crime, particularly extortion and protection rackets. Volkov’s research shows that by the end of the 1980’s the reported incidences had exceeded 4,500 per annum and that it continued to grow dramatically during the early part of the 1990’s, reaching a peak of 17,169 cases in 1996 and the state was struggling to control this situation. The only beneficial effect of this racketeering as far as Volkov (2002, p.142) was that it led to a growth of a retail security sector. Russia also experienced a significant financial disaster in 1998, which saw the relatively new stock market index fall to 38 points, a 60% drop on its opening position, during which time the country fell back on it â€Å"familiar trade activities and exported natural resources, together with outside help to survive the crisis (Turnock 2005, p.130). Things began to change when President Putin came to power. Despite the fact that many researchers consider his approach to be the creation of a â€Å"managed democracy† (Terterov 2005, p.3), with observers being particularly critical of the lack of competition during the 2004 elections. Despite this perception, Putin was able to restore some measure of order to the process of transition. It is the general view that most of Putin’s reforms, perhaps with the exception of the variety of legislations that â€Å"restricted companies freedom of [financial] action† (Granville and Oppenheimer 2001, p.218), did contribute to a more positive free-market economy evolution (Dyker 2004; Granville and Oppeheimer 2001 and Turnock 2005). As Hoffman (2003, p.372), a trustworthy retail-banking environment was being built and additionally retailing outlets being released from state ownership into the hands of private owners. Granville and Oppenheimer’s (2001, p.511) produced evidence of this from a survey, which reported that, â€Å"by the end of 1995, 34 per cent of retail pharmacies had become independent juridical entities.† Oleinik (2005, p.214) confirms this position, revealing, â€Å"Roughly 50 percent of State-owned retailers, wholesale enterprises, public catering and transport enterprises were privatised as of July 1994.† In fact, in the early years much of the early change to capitalism was centred on internalised privatisation and restructuring of the various infrastructures, which researchers such as Burawoy (1996) and Turnock (2002) considered being a normal part of the process to be conducted before economic evolution can begin. 2.2 The Russian Retail Sector Whilst Russia has relied heavily upon its traditional manufacturing and natural resources to provide economic growth in the past, with the onset of capitalisation, it has been widely acknowledged within researches (Gufaston 2001 and Medvevev 2000 are two of these), the retail sector began to have an increasing impact. In fact it is held that in Moscow, which accounts for 27% of the country’s retail trade, this and â€Å"the growth of its consumer sector was the main factor in Russias economic turnaround† (Gustafson 2001, p.186). Many writers have studied the retail phenomena in an attempt to provide an understanding of the theory surrounding it, and how groups within the retail arena will react (e.g. Porter 1979, 1980; McGee Thomas 1986; Caves Porter 1977, 1978). Roth and Klein (1999, p.173), produce a general system theory that results in a multiple of outcomes irrespective of the fact that all firms may be subject to the same environment. The retail development in Russia over the past decade or tow certainly follows this theory. The growth of firms has been subjected to the many differing consumer demands, with a historical preference for open market and small store shopping. Similarly the geographical situation is Russia, whit a small number of major towns and cities dispersed over a wide area, has made also affected their growth patterns. Despite the fact that it is generally consider that the authorities approach to the retail sector has been correct (Terterov 2005, p. 28), there are others that argue that â€Å"business found it hard going, burdened as they were not only by taxes and the extortions of corrupt officials but also by the cruel racketeering that kept growing stronger† (Medvedev 2000, p.23). Similarly, others believe that there the development of the consumer sector was poor (Dyker 2004, p.57) and, in comparison with more developed economies, the levels of â€Å"integration were rather low† (Wehrheim 2002, p.19). Furthermore, this is said to have led to a wide variance of standards, with some improving and others not (Medvevev 2000, p.91). Thus it is little wonder that such researchers in the early 2000’s, should consider that â€Å"Russia was not the most successful country in pursuing the shift from plan to market( Wehrheim 2003, p.17). However during the last five years this position has begun to change, with the retail sector now growing at a dramatic rate. In fact its growth position is second only to India. This is being partially attributed to the increase in personal and disposable income (see table 1), GDP and the rise in the currency value. (Newswire Today 2007). This growth is encouraging attention from foreign businesses, who are looking for business or joint-venture opportunities in the Russian retail sector, such as the food industry (Wehrheim 2003, p.136) 2.3 Foreign Investment in Russia’s Retail sector Prior to Gorbachev’s accession to the Russian Presidency, FDI in Russia had been banned since the late 1920’s (Brady 2000, p.185). However, since this ban was lifted, and particularly during the past decade, FDI has become an increasingly important part of Russia’s economic growth (Dyker 2004, p.207), However, FDI interest was slow to begin with. Turnock (2005, p.3) advances the theory that this was due to the fact that â€Å"Whilst FDI and economic growth are linked, it does not necessarily follow that FDI helps in improving the investment climate, it usually requires the climate to be good in the first place.† Similarly, as foreign investors had learnt with other emerging countries, there is no â€Å"pain without Gain (Dyker, 2004, p.20). Nevertheless, once the free-market economy begun to flourish for internal organisations, Western corporation became interested, and this led to an increase in investment from overseas, which rose by â€Å"155 in dollar terms† by the end of 1994 (Brady 2000, p.205). Investors wanted to get a share of the market stock, â€Å"even though they often knew nothing about the companies , a situation encouraged by Russian tycoons (Hoffman 2003, p.207 and p.361). The one incident that did produce an adverse effect to FDI in Russia was the financial crisis of 1998 when, because of the apparent inability of the market â€Å"to restore order in its economy has forced foreign investors to take their money and head for the exit† (Medvedev 2000, p.296) However, once this crisis had been resolved, the flow of FDI continued to grow (see table 2). By the end of 1995 it had reached a position where five percent of the Russian consumer market was in the hands of foreign owners or their subsidiaries (Medvedecv 2000, p.156). Table 2 FDI in emerging countries in Europe Source: Turnock 2005, p.5 The position has also increased dramatically in the years post those in the above table. For example, the CIA Fact book (2007) showed that FDI doubled from $14.6 billion to $30 billion between 2005 and 2006. These figures were building on the back of a $9.4 billion FDI amount in 2004 (Special Report 2005), and there is little sign of this situation slowing down in the foreseeable future. In addition to the taking over of domestic retailers, foreign corporations are also setting up their own within the country, with Ikea, which â€Å"has 50,000 workers and 159 stores in 29 countries making and selling over 10,000 articles around the world and is one of the largest furniture companies† (Turnock 2005, p.237) being one of the most noticeable. 2.4 Summary It would appear from the literature that has been reviewed here that, whilst most academics agreed that Russia’s road to capitalism had a less than favourable start, and was also interrupted by the crisis of 1998, it’s economic growth has now become more stable and, despite the current political disquiet that exists about the country, the current levels of growth and FDI are set to continue for the foreseeable future. Chapter 2: Methodology 2.1. Research method Due to the complexities of the research being undertaken, together with the geographical and time constraints, it was felt that the best method of approach for this research was to use a quantitative approach. In view of the study being conducted, it is felt that this approach a wealth of literature, information that would span a sufficient level of governmental, independent observers and research sources to enable this paper to achieve its objectives. Similarly, such is the breadth of these resources that it is felt they ensure accuracy and ample range for comparative purposes. In the view of the author this approach has provided an adequate research base for purpose of this study. 2.2. Research material choice In terms of the government resources, the relevant data has been selected from various national international and global organisations. Other data in respect of FDI and the retail sector activity within the Russian market place, has been collected and researched using academic publications, together with industry news and press reports, supported by surveys and other technical data. Furthermore, we have used the data available on several corporate bodies that have secured a position within this market sector. 2.3. Research performance Using this data, the first step was to study the movement of the retail sector itself during the past few years, then to outline the events within the foreign direct investment factor, including a brief study of some of the external corporations that have sought to invest in this market place. During this process we have been able to also identify the benefits and disadvantage that such a move might bring to the investing corporation company. From these actions we have then been able to conduct analysis and outline areas for discussion. Chapter 3: Findings and Analysis 4.1 Russian retail sector The Russian retail sector, as previously indicated previously, has seen a period of continued growth since the beginning of this century. According to research carried out by RNCOS (2006), The market in 2004 grew to a value of $193.2 million, which represents a year-on-year performance increase of nearly thirty one percent, making in one of the most attractive retail markets globally. The same report also states that the expectation is for the growth rate to continue to exceed GDP during the course of the following years. Later resources available from the Russian Trade federation (see figure 1), show that this growth is continuing and is anticipated to accelerate in the next three years, with the major concentration on the main cities and towns. Figure 1 Russian retail growth Source http://www.russiantradeny.com/index.php?chapter=rtaction=showid=41 Additionally, the Russian statistics service (Rosstat) have released figures for the first quarter of 2007, which show that in that period alone the grown has been 13.6%, which at $117.456 billion, puts the sector on course to reach $500 billion for the who year. , in Russia, retail sales grew 13.6% YOY to reach the level of 3.043 Trillion Rubles (US$117.456757 Billion) from January to April 2007. However, retail sales grew 13.8% to reach around 814.8 billion rubles (US$31.4504652 Billion) in this April alone. A further report by Kuipers (2006) shows a further breakdown of these sales. From this analysis, it can be seen that, whilst food retail is growing appreciably at 17.6%, the non-feed area is doing even better (see figure 2). Figure 2 Breakdown of retail sales Of these amounts approximately 48% represent retail sales attributed to imported goods. The increases n this area has been brought about partially as a result of recent changes that the Russian authorities have made to various duties and levies. For example, as a recent Euromonitor (2006) study shows, the import duty on â€Å"raw coffee beans was abolished in 2006, with the direct intention of encouraging new players such as Nescafe and Starbucks. The following graph shows the effect that it is estimated this will have on the market for hot drink sales over the next few years. Figure 3 Russia Hot Drink sales There has been a significant growth of retail in the past few years in Russia and, as a result of this, Russia’s 76.3% increase in trade outlets is out-stripping the performance of other Eastern European countries (Czech 0% and Croatia 17%) and Europe as a whole (20%). The generally held view, as voiced by Vitaly Podolskyi, CFO of the Russian retailer Pyaterochka, during an interview with Kuipers (2006), is that by 2010 Russia could well become the largest retail market in Europe. However, in a later interview Vitaly Podolskyi, also stated that it was a difficult sector for domestic retailers, and for foreign entrants who were seeking to establish a profitable business in a reasonable timescale, simply because of the geographic fragmentation of the market place. In this respect his view was that for the foreseeable future, the best route for new entrants would be by mergers and acquisitions. As will be seen later this is a route already being preferred by some of the countries domiciled retail corporations. This view is supported by other research conducted by Kuipers (2006), which confirms that the country’s retail sales are still being generated upon old traditional lines. As can be seen from the following graph (figure 4) (Kuipers 2006), nearly half of all shopping is conducted in open-air markets, with modern trade outlets accounting for only around 20%. and the rest being generated through smaller outlets. Figure 4 retail sales 2005 Much of the reason for the slow pace of change in consumer buying habits is because of the fact that most development in this sector has taken place in the major cities such as Moscow and others mentioned in figure 1 above (see page 20). As mentioned earlier, with such a large geographical area and spread of population involved, it is difficult to impact these methods upon the larger population. However, as the growth rates in these metropolis begin to slow down, so the major retailers are beginning to look for growth further afield (Zeitung 2004), this is currentlu concentrated upon areas where the population is more than one million, but as this development continues, as with economies like the UK, smaller areas of population will no doubt be targeted in the future. As of 2004, as reported in a study conducted by Harri Larentz,, the major retailers within the Russian sector are still predominantly of domestic origin (see Table 3), with only three external competitors at that time. These can generally be broken down into three types of operators. †¢ discounters – developed by Magnit, Pyaterochka, Dixi and Kopeika. They feature a limited assortment (up to 4,500 SKUs), selling space of 250-1,000 m ², and a gross margin of 17-24 per cent. They are normally located in residential areas. †¢ traditional supermarkets – developed by Seventh Continent, Perekriostok, Ramstore, Rewe and, recently, by Auchan, with locations in city centres, along highways and in residential areas. Typically they generate a gross margin of 25-32 per cent and have an assortment of up to 20,000 SKUs. †¢ hypermarkets – developed by Auchan, Metro, Perekriostok, Mosmart, Lenta, Karousel and Seventh Continent – with selling space from 4,000-16,000 m ², 15,000-40,000 SKUs and a gross margin of 13-20 per cent. However, since this report was produced, the chains of Pyaterochka and Perekrestok have been merged to form the largest food retailer in the country by turnover.(X5 Retail Group NV 2007). Table 3 Russian major retailers. Source: Harri Lorentz 2004 From the consumers viewpoint, these new retail formats are having a beneficial effect, and not only in increasing the range of choice, but in the early days they increased the consumers purchasing power by bringing down price increases, although in latter years this has not been maintained (Anon 2005). Although the Russian economy experienced a downturn during the first half of 2005, from 7.6% to 5.6%, the position has improved since then, and the advances being made within the retail sector are driving much of this improvement. 4.2 Foreign Direct Investment As has been previously identified within this research, FDI is continuing to increase within the Russian economy (see table 2, p.16) and the latest figures produced by the Russian Federal state statistics service confirms this position for 2006-2007 (see table 3 below). However, as can be seen from this table. The amount of FDI directed at the retail sector is still a relatively small percentage of the overall investment. Table 3 FDI levels 2006-2007 Nevertheless, although this is the case, some of the balance of FDI is going to manufacturing industries that serve as production and supplier organisations for the retail sector. For example, in 2006 Nestle and their main competitor Kraft â€Å"launched and built† instant coffee production facilities (Eurmonitor 2006), which will no doubt encourage other foreign corporations to make the same move. Food Retailers There are already some international corporations already investing in the retail sector. As was noted in the report by Harri Larentz (2004), Auchan from France, Martloraf and Metro from Germany, Ramstore from Turkey, Spar from the Netherlands and Stockmann from Finland already have a foot in the door. But, apart from Ramstor and Metro, which have around 2 and six stores respec

High Contact Service

High Contact Service Summary of the Reviewed Article High-contact service industries are those in which service employees and customers have close and direct interactions for a prolonged period of time (Chase, 1981). A high-contact environment of services has the characteristics of longer communication time, understanding of communication, and richness of the information exchanged (Kellogg and Chase,1995). In this article, the impact of employee satisfaction on, quality and operational performance in high-contact service industries is investigated. The hypothesized relationships among employee satisfaction, service quality, customer satisfaction, and firm profitability are examined. Employee satisfaction plays a significant role in enhancing the operational performance of organizations in the high-contact service sector. Firm profitability has also a moderate effect on employee satisfaction, which lead to a satisfaction-quality-profit cycle. The reason of conducting this research is that the research in operational management to invest igate the relationships between quality, customer satisfaction and business performance has been conducted (e.g., Heim and Sinha, 2001; Balasubramanian et al., 2003; Nagar and Rajan, 2005), but research on the impact of employee satisfaction on operational performance is relatively scarce. In order to represent the whole service firm, service employees are often the first party and therefore are essential to shaping customers perception of service quality (e.g., Parasuraman et al., 1985; Hartline and Ferrell, 1996). Service employees job is considered as a three-cornered fight, in which the organization and customer are at the two ends, while service employees are caught-in-the-middle among them, Bateson (1985). It is important for service employees to meet the target of productivity performance in the organization and to fulfill customers needs and external quality goals. Hypotheses There are four hypotheses made by the writers of this article with empirical support and theoretical backing of the previous studies that employee satisfaction, service quality, customer satisfaction, and firm profitability have relationships with one another. Hypothesis-1. Employee satisfaction has a positive influence on service quality. Hypothesis-2. Service quality has a positive influence on customer satisfaction. Hypothesis-3. Employee satisfaction has a positive influence on customer satisfaction. Hypothesis-4. Customer satisfaction has a positive influence on firm profitability. Data Collection This study was conducted in Hong Kong. They identify 12 main shopping areas in Hong Kong (e.g., Tsimshatsui and Causeway Bay) and they selected five major shopping centers randomly from each area. They choose small service organizations with only two to five service employees, because employee satisfaction level tends to be more consistent and easier to capture. in small organizations (George and Bettenhausen, 1990). To collect the data, they prepared survey packets, in which one shop-in-charge questionnaire and two service employee questionnaires are included and they choose eight different types of service shops. Results In their results they show that All the four hypothetical relationships were supported at the significance level of p = 0.01. The linkage between employee satisfaction and service quality (Hypothesis 1) is highly significant (P = 0.423, t = 4.778). Supporting hypothesis-2 service quality has a positive influence on customer satisfaction (P = 0.287, t = 3.33). Employee satisfaction has a significant and direct impact on customer satisfaction, H-3, ( P = 0.234, t = 2.77). The relationship between customer satisfaction and firm profitability (Hypothesis 4) is also highly significant (P = 0.270, t = 3.64). Hypothesized model Alternative Models In this study, the writers have also made some alternative models which shows the different relationships among employee satisfaction, service quality, customer satisfaction, and firm profitability. They did this work keeping in view the point of Bentler and Chou (1987), who said that to shed light on the key features of the hypothesized model, the researcher should build a few alternative models in an ideal situation. Critical Review In this article, it is asserted that employee satisfaction is an important determinant of operational performance and is crucial in achieving quality and profitability in the service industry. While in another research paper it is suggested that customer satisfaction has a significant impact on financial performance, findings also suggest that employee satisfaction has no direct impact on financial performance because the relationship between employee satisfaction and financial performance is an indirect one, which is mediated by customer satisfaction(Christina G. Chi *, Dogan Gursoy, 2009). In another study of the relationship between employee loyalty, service quality and firm performance in the service industry, it is argued that employee satisfaction has no direct relationship with customer satisfaction. When there is an employee satisfaction, then employee loyalty is created which has the direct effect on customer satisfaction and employee loyalty is an important determinant of f irm profitability. In the same study it is concluded that a loyal employee has more opportunities to understand and fulfill the specific needs of the customers, leading to a greater impact of employee loyalty on service quality and if there is low contact time between employee and customer, then the relationship between employee loyally and service quality would diminish. Employee loyalty plays a significant role in enhancing the performance of organizations in high-contact service sectors and is used to boost service quality, customer satisfaction and customer loyalty. Workers who are strongly committed to the organization or highly satisfied with their jobs show up at work more often than those with weak commitment and low satisfaction. Employees who are highly satisfied with their jobs and are strongly committed to the organization will avoid withdrawal behaviors, (like absenteeism, lateness), and maintain continued attachment to work (Blau Boal, 1989). An employee who is absent from work intentionally or unintentionally is expressing negative attachment to the organization. In the reviewed article a lot of material is written on the relationships between employee satisfaction, service quality, customer satisfaction and financial performance and it is highly asserted that employee satisfaction is very important and cannot be neglected in any case. But how an employee satisfaction can be gained, it is not emphasized. In another research, some factors are mentioned as antecedents of employee satisfaction. These antecedents are the employee empowerment, Employee training, teamwork, appraisal systems, and employee compensation. When an organization focus on these factors, then employee compensation is automatically created. All employees will become satisfied, when they are given empowerment, training, teamwork, compensation and their efforts are appraised. Formal and informal training could focus on instilling the employees with the thought that service quality involves also transferring positive emotions to customers. The writers of study have found that top management commitment has a positive impact on all the antecedents. And as a result, all these factors have a positive impact on employee satisfaction (Minjoon Jun , Shaohan Cai , Hojung Shin, 2005). Relevant to the Organizational Policies This topic is highly related to our subject that is organizational policies, because while making policies, employee satisfaction cannot be neglected. Oliva and Sterman (2001) unambiguously showed that maximizing throughput that drives employees to working overtime traps service organizations in a vicious cycle of declining service quality, causing severe and permanent financial losses. There is a concept of balanced scorecard, where employee morale and growth, internal business process, customer satisfaction and financial measures are regarded as four balanced quadrants that drive the strategic initiatives of an organization (Kaplan and Norton, 1996). In case of a lack of focus on any of these four perspectives, the entire organization will be thrown out of balance, causing strategic efforts in operations to collapse. As it is concluded that organizational profitability emanates from satisfied employees, so it is suggested that organizations in high-contact service industries should thus focus their efforts on improving employee satisfaction, and only satisfied employees can maintain the service quality and ensure customer satisfaction.

And Then There Were None :: And Then There Were None

And Then There Were None I recently read a mystery book by the name of "And Then There Were None" by Agatha Christie. I read this book because I have read other books by Agatha Christie that were pretty well written. Ten people are invited to an island, called "Indian Island", by letters that were signed by people they had met before. When they got to the island, they found out that their host, U.N.Owen, had not arrived yet. At dinner, they heard a voice, accusing each of them of a murder, which they were all guilty of. After one of them is killed, according to the first verse of a poem that is framed above each of their beds called "Ten Little Indians", they figure out that the murderer is one of them! As more people are killed off, one by one, the group narrows the suspect list down, until only one is left alive but she figured that she would never get off the islan anyway, and she hung herself from the ceiling by putting a noose around her neck and kicking the chair away on which she was standing, but she was not the killer. One of the mysteries to this book was, of course, who killed all of the innocent people. Another mystery was that every time another person was killed a little indian figure would disappear from the edges of a serving plate. One more mystery was that every murder followed, in order, the famous poem "Ten Little Indians", which reads: Ten little Indian boys went out to dine; One chocked his self and then there were nine. Nine Indian boys sat up very late; One overslept himself then there were eight. Eight Indian boys traveling in Devon; One said he'd stay there then there were seven. Seven Indian boys chopping up sticks; One chopped himself in halves then there were six. Six Indian boys playing with a hive; A bumble-bee stung one then there were five. Five Indian boys going in for law; One got in Chancery then there were four. Four Indian boys going out to sea; A red herring swallowed one then there were three. Three Indian boys walking in the zoo;

Playing with the industry leader?s rules is competitive suicide?? If so, why? :: essays research papers

I agree with this statement. When it comes to trying to break into an industry and have a competitive advantage over the rest, the strategy we have to use has to be distinctive. This means we have to come up with a different approach to capture our customers to make them want to use our product rather than product’s from the industry’s leaders. The best competitive position is always to have no competition. To achieve that level, organizations should not be following what the leaders are doing instead they should formulate, implement and deploy a distinctive strategy that changes the rules of the business game in their favor. What wins in business is not in trying to out-muscle competitors, but rather to out-think the competitors by brainpower. For example, there are three major international television networks in the world, CBS, NBC, and ABC. In the last thirty years or so, none of them have managed to get a monopoly of the television industry. However, in the last fifteen years, all three were over-taken by CNN. This is because the three networks were trying to gain competitive advantage by using the same strategies. Only CNN has a distinctive strategy. Instead of standard broadcasting, CNN went cable and satellite. Instead of going with variety programming, CNN went with news. Instead of staying domestic, CNN went global. And because of these very different strategies CNN is one of the major leaders in the television network industry, making about US$8 billion a year. Another similar example would be the airline industry. For the last fifteen years or so, CEOs of many major international airlines openly said how difficult it was to make savings in revenues and profits. Except one airline, whose operation has proven profitable since they start business activities in 1973 - Southwest Airlines of the US. This is more because Southwest is not very conventional in their approach or running an Airline business, Southwest Airlines have a distinctive strategy, Some of their more significant strategies would be using a single aircraft instead of multiple aircraft and forgoing having a reservation system like most major airlines. However even though Southwest’s Strategy is to be as plain and simple without all the frills other major airlines are offering, they are still the major leaders in the Airline Industry This proves that in business; if you are not the leader, never play the game according to the rules that the leader has set.

The Four Contexts of Motivation

Malcolm Knowles’ research in adult motivational learning produced four â€Å"distinct contexts†; Practical, Personal, Experiential, and Idealistic. The Practical context is motivated by a direct desired benefit result received from the learning such as a specific employment position, for financial wisdom and gain, or to apply the learning towards greater competency and confidence in making life decisions in situations anywhere from family to work, or even building that dream house that may have previously thought to be unattainable.The Personal context involves motivation directed by self fulfillment goals to overall better oneself and therein the quality of life. An adult student may for example want to learn in this context to increase self worth. Experiential learning differs from the other contexts in that one draws from real-life and past experiences motivated by a desire for renewal by consolidating with more current and forward ideas with the goal of improving an d refreshing their experience.The final Idealistic context motivation attracts those who just desire to continuously learn for the sake of the ongoing discovery of knowledge and new ideas throughout their lifespan. Learning wine tasting may be a venture for this type of learner. My learning motivation is Experiential. Professionally I have experienced a long career in the Human Resources field and held BA degree positions despite the fact that I did not have one. I do have my PHR but have learned mostly in a hands-on context. I have experienced both successful and unsuccessful situations during my career.I started my college education years ago and have procrastinated about returning for many years. I finally came to the realization that I need that degree and everything it offers in order to become more competent and confident in my business decisions. The unsuccessful situations I have experienced were due to my lack of a solid educational background. When I lacked the educational background to perform some of the tasks I was assigned I became panicked, stressed and found it necessary to be reactive.My motto during those times became ‘‘fake it until you make it! †. That attitude eventually caught up with me and forced me to face what I was missing. It took my losing a couple of positions to overcome the denial I was in. I know that I need this degree to enhance my performance and definitely for organizational development. I am know on a serious mission to complete this goal and believe attending Ashford University will give me the competency, knowledge and confidence I need to be successful resulting in a much happier and less stressful lifestyle.

Aronson,Marc. Witch-hunt: Mysteries of the Salem Witch Trials. NewYork: Simon And Schuster, 2003

In reviewing the book Witch-hunt: Mysteries of the Salem Witch Trials, I found many new and interesting facts about the Salem witch trials. The book gives a detailed account of the accusers, the accused, the judges, and other key players involved in the hysteria that consumed Salem in 1692. Aronson starts out his book not with 1692, but instead with 1688, a year when the four Goodwin children seemed to be possessed by someone or something that was not of this world. The whole of this story is told by Cotton Mather, a well-respected minister of his day. He and his father, Increase Mather would play an important part in the hysteria was to come. He was the one who established the test for accused witches—that is, the ability to recite the Lord’s Prayer perfectly. Ironically, it would be his voice that would stop the hysteria in late 1692. He then compares the hysteria of 1692 to the post-September 11, 2001 hysteria regarding religious fundamentalists. At times, Aronson is a bit preachy, but the narrative moves along, telling vividly of the trials of the accused, and how many recanted their confessions, and even the histrionics of the alleged victims. The story begins with a group of girls practicing some old divination with a West Indian Slave, Tituba. When the experiment goes horribly wrong, the girls begin having spells of illness, and began going into fits. The girls quickly accuse Tituba of bewitching them, and Tituba does not disappoint, confessing to the crime of witchcraft, naming names, if only to save herself. The accusations fly quickly from there, as does the narrative. Aronson moves quickly, telling of the trials and hangings with vivid clarity. One almost feels as though they are in the courtroom, feeling the accusers’ pains, and hearing the plaintiff’s cries of innocence. Aronson also takes us to the jail cells, telling us of witches that recanted to the stenographers charged with taking their confessions. Aronson then talks of the height of the hysteria, when people were being accused at an alarming rate. He does, however, neglect to mention that a total of 20 people were executed, and many more were imprisoned. Aronson ends the Witchcraft trials with a voice of reason. It is the same voice that ended the hysteria 300 years ago. The reason is voiced by people like Cotton Mather, Increase Mather, Thomas Brattle and other esteemed men of the society. He also ties the whole thing together by placing the events in their historical context and giving reasons for the hysteria and for the end of the reign of terror. Overall, he does an excellent job of taking the available resources and turning it into a gripping tale that would take anyone on a wild ride. I personally read this book in two days, I could not put it down. The contemporary comparisons Aronson makes brings the book to relevance to today’s young person while bringing this fascinating historical period to a satisfying, if unsettling conclusion. Overall, I would recommend this book to anyone who wants a better understanding of the Salem Witch Trials and their impact on Massachusetts society. I would also recommend it because after reading it, one gets the sense of what a modern day witch-hunt looks like. Hopefully, by reading about this troubling period in American history, we can avoid repetitions of this type of hysteria in the future.