Ukraine Turmoil Essay

May 2014 In today's world, it seems like there is â€Å"bad† news everywhere in the world. Ukraine is one location where they have been having turmoil. Recently, Ukraine has had some complications with intergovernmental protesters, sometimes it led to death. These protestors are trying to have their voices heard regarding President Victor Hancock rejection to the agreement with the European union in November 2013; it was said that there were stronger ties with Russia, The protestors were outraged because they wanted to Integrate with Europe. Some protestors believed thatHancock was striving for power and wasn't serving the interests of his people. Hancock actually signed into law ten interposes laws that the Parliament of Ukraine created. This will take away freedom of speech; affect the non-governmental organizations, as well as many others. This seems to make sense when you look at the history of the Ukraine. For centuries, there have battles over Ukrainian position between East and West. In the 17th century, Eastern Ukraine was under Russia imperial rule. In the west there were shifting control of European powers, such as Poland and the Castro-HungarianEmpire. This might help explain why the west is more likely to choose â€Å"Western- leaning politicians† (Contact) and is more Ukraine-speaking with a Catholic influence; whereas, the east is more Russian-speaking and Orthodox. Throughout the earlier years, Ukraine has been overtaken by competing powers and a division was being made. The division was amongst the peoples' beliefs and views; some saw the rule of the Russia imperial and Soviet union was a good thing, while others believed it was a tragedy. In the 16 the and 17th century it seemed that Poland had some control, but not after a war betweenDastard of Russia and the Polish-Lithuanian Commonwealth. In the asses, Soviet leader Joseph Stalin led millions to their deaths through starvation. In order for him to repopulate the east, he brough t In large numbers of Russians and soviet citizens, who spoke no Ukrainian and had no ties to the region. Looking at a map, it seems like there is a natural divide between the south/east and the north/west, which are known as the steppes, where the southern and eastern portions are more farming land and the northern and westerns are more forests.The protests In the Ukraine have created uproar for the country and have turned Into much more than what was expected. It seemed to start out about Europe, but now It seems more like â€Å"protests over democracy and the end of corruption† (Contact). Many people want the corruption to end and a new president to be assigned. There is also a political division between the older and younger generations. The European Union said that becoming a member could be worth billions of euros, which would help their economy. The E also wants to help clean up the damages (BBS) on democracy and human rights.

Bottom of the Pyramid

The quest for the fortune at the bottom of the pyramid: potential and challenges Dennis A. Pitta The University of Baltimore, Baltimore, Maryland, USA, and Rodrigo Guesalaga and Pablo Marshall ? Ponti? cia Universidad Catolica de Chile, Santiago, Chile Abstract Purpose – The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be pro? table and help alleviate poverty by attending low-income consumers. Design/methodology/approach – The literature on BOP was reviewed and some key elements of the BOP approach were proposed and examined.Findings – There is no agreement in the literature about the potential bene? ts of the BOP approach for both private companies and low-income consumers. However, further research on characterizing the BOP segment and ? nding the appropriate business model for attending the BOP can provide some answers to this issue. Practical implications – The article provides some guidelines to managers as to how they need to adapt their marketing strategies to sell to the BOP market, and what type of partnerships they need to build in order to succeed.Originality/value – The article presents a thorough analysis of the key elements involved in the BOP initiative: companies’ motivations, characterization of the BOP consumers, and the business model to attend the BOP. Keywords Private sector organizations, Emerging markets, Consumers, Poverty, Disadvantaged groups Paper type Research paper underpin the concept, and refutes its basic premises. Instead of a market of untapped potential, this literature stream sees a ? nancial desert that BOP principles may harm more than help. The BOP may be a less a source of signi? cant pro? ts than a source of serious losses.Karnani’s analysis posits that the poor may want the same products as the rich do but by virtue of being poor, they cannot afford them. The poor spend most of their income on food, cl othing, and fuel. For the poor, the mathematics are clear: buying a branded product reduces the funds they must devote to survival. In contrast, Karnani suggests that raising income will alleviate their poverty, provide cost effective products to other consumers, and allow the formerly poor to consume more. Raising their incomes may require that they become producers with stable jobs and wages. Both viewpoints concentrate on the poor but draw different onclusions about how to alleviate their poverty. The two positions also differ in the nature and proper role of industry and government. In light of the differences, the argument would bene? t from empirical data that tests the underlying premises of each viewpoint. Verifying the premises would allow further logical analysis of implications and applications of the concept. In fact, the need for clari? cation is recognized. In the next section, the authors provide some foundations for the most traditional and still dominant approach to market, i. e. the focus on the â€Å"top of the pyramid† (TOP).The rest of the article focuses on the â€Å"bottom of the pyramid† (BOP); it explores Prahalad’s proposition and the opposing viewpoint, reviews key aspects of the BOP initiative – companies’ motivation; the BOP business model; the role of micro? nance; and the key participants – and proposes some implications and challenges for marketing theory and practice, and ? nally some implications for marketers. An executive summary for managers and executive readers can be found at the end of this issue. Introduction The bottom of the pyramid (BOP) approach to earning corporate pro? ts has gained considerable attention in the arketing literature. It has awakened managers to the potential of serving an unserved market and alleviating the level of global poverty while still earning a pro? t. However, the BOP proposition, while clear, appealing, and enlightening has not been accepted in a n unquali? ed manner. One branch of the BOP literature puts forth the elements of the BOP proposition and supports its ? ndings with numerous case studies (Prahalad, 2004). Those studies portray the poor as motivated by similar desires as the rich. They want quality products and any company that can supply those products at he right price will gain their business. Some of the case studies show the strategies for reducing the effective price of products through packaging and developing lower cost sizes. Prahalad and others describe the untapped potential of the BOP, and list strategies that companies may use to tap that potential. An opposing branch of the literature (Karnani, 2007a; Martinez and Carbonell, 2007) analyzes the nature of the BOP market, the applicability of the case studies that The current issue and full text archive of this journal is available at www. emeraldinsight. com/0736-3761. htm Journal of Consumer Marketing 5/7 (2008) 393– 401 q Emerald Group Publishi ng Limited [ISSN 0736-3761] [DOI 10. 1108/07363760810915608] 393 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 The â€Å"top of the pyramid† customers, and labeled them as Platinum or Gold. In contrast, those with lower to very low LCV’s earn the value labels, Iron and Lead. They point out that a single Gold or Platinum customer may have a Lifetime Customer Value, many times higher than that of someone in the Iron or Lead tier. Speci? ally, one Platinum customer may be worth more than â€Å"tons† of those labeled as Lead. Conceptually, identifying value and potential pro? t deriving from the top of the pyramid is straightforward and represents traditional organization goals. Companies can use standard market segmentation and product differentiation to satisfy these tiers. Dealing with these customers requires profess ionalism, but the normal market research processes, product development, channels of distribution, promotion, and credit functions should result in success. Thus, Zeithaml and her coauthors showed companies how to use their tried and trusted arketing approaches to maximize effectiveness and pro? tability. The key is to serve those customers most likely to generate pro? ts instead of losses. The justi? cation is clear: companies have limited resources and should concentrate their efforts where the returns will be the highest. They demonstrated the value at the top of the pyramid (TOP) and shared strategies for serving those customers while discouraging or even â€Å"? ring† the lower, money-losing tiers. For pro? t seeking companies, the customer pyramid approach is appropriate and allows them the best chances to survive in typically competitive markets.Not surprisingly, the â€Å"top of the pyramid† (TOP) approach is at the heart of Western business practice. Tradition ally, businesses require a set of four conditions to operate successfully in a market segment. The segment must be identi? able, measurable, substantial, and accessible. In Western economies, business and communication infrastructures are developed suf? ciently to meet all of the criteria for most segments. Arguably, while all four conditions are important, the substantial and accessible elements are the more important. For a pro? t-making ? rm, the segment must be large enough to generate pro? s. If that condition is satis? ed, it is critical that consumers in the segment be reachable by communications media to receive promotional messages. In addition, they must be physically accessible to distribution alternatives. From a pro? t perspective, companies concentrate on those areas in which they can be effective, namely segments that meet all four requirements. Serving the TOP inevitably means a focus on pro? ts instead of revenues, and pro? ts are central to Western business. In pra ctice, over time, numerous Western companies have ceded market share or entire markets to others when the pro? ts eclined. One prime example is the computer memory chip market. Memory chips were once produced exclusively in the US and Europe. As Asian competitors entered the market, they cut prices at the expense of pro? ts. Their goal was to make chips; the US ? rms wanted to make pro? ts. Consequently, US ? rms abandoned the marketplace and searched for targets that were more pro? table. European and US companies still make chips. Their dominance of the microprocessor markets is the result of the strategic quest for pro? tability. However, European or US players do not dominate the huge market for memory chips.To be accurate, the US companies’ actions are not driven solely by the desire to earn pro? ts. Their organization, corporate culture, and internal processes require economies of scale, which demand exploiting the richest target markets. In many cases, successful compa nies have evolved into ef? cient machines whose foundation is high structural cost. Thus targeting the most lucrative segments is vital for continued success. Pro? t, in its simplest form, is the surplus of revenue over costs. If companies can drive costs low enough, it is conceivable that prices might be low enough for the poor to fford and high enough to generate a pro? t. However, earning a pro? t with such customers today takes enormous effort. More important, companies that exist today may be unable to drive costs low enough to succeed. In fact, costs are only one part of the equation. The underlying problem is that companies are ill equipped to serve the poorest customers. They don’t really know what the poor want and don’t know what bene? ts they seek in products and services. In addition, companies may not know what mix of product bene? ts, price, quality, promotion, and distribution works best for this segment.However, the focus on pro? ts has led to success. Recognizing the importance of pro? ts, Zeithaml and her colleagues have worked on the customer pyramid concept (Zeithaml et al. , 2001). Without using the term, they focused explicitly on the â€Å"top of the pyramid,† those consumers with the highest lifetime customer value (LCV). By dividing the customer pyramid into four sections called customer pro? tability tiers, they identi? ed the â€Å"best,† most pro? table The â€Å"bottom of the pyramid† approach Prahalad’s proposition In the book The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Pro? ts, C.K. Prahalad (2004), provided that initial conceptualization that had been missing in marketing thought. His book succeeded in planting the perception that consumers with low levels of income could be pro? table customers. He painted a picture of the double bottom line: social goals combined with the business objective, pro? t (Harjula, 2005). Coincidently, he appealed to the best motives among those at the top of the pyramid. By citing examples of successful attempts to empower the poor and share in global wealth, he kindled the imagination of those who want the world to be a better place. This is an ppealing proposition: â€Å"low-income markets present a prodigious opportunity for the world’s wealthiest companies – to seek their fortunes and bring prosperity to the aspiring poor† (Prahalad and Hart, 2002). Prahalad’s proposition is an invitation to company executives, politicians, managers of non-pro? t organizations, and ordinary citizens, to view poverty as something that might be alleviated rather than inevitable. He presents a wellreasoned conceptual view – supported with case study data – of how companies might mine pro? ts from the lowest economic strata (Hart, 2005; Prahalad, 2004). Much of the reatment centers on the nature and scope of pro? ts and the collective wealth of consumers at the bottom of the pyramid (B OP). The main thesis of Prahalad’s work rests on the idea that the potential growth for many multinational (MNC) and medium sized companies does not rest on the small highincome market in the developing world. Instead, its source is the mass low-income people that are joining the market for the ? rst time. This idea goes against the following 394 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo MarshallVolume 25  · Number 7  · 2008  · 393 –401 assumptions, which, according to Prahalad, most MNC’s make: it is not pro? table for them to attend the BOP due to their high cost structure; the low-income segment cannot afford the products and services they sell; and only developed markets value innovation and will pay for new technology. These arguments imply that governments and nongovernmental organizations (NGO’s) should take care of the low-income segment. According to Pra halad, marketers who believe that the BOP is a valuable unserved market also believe that even the poor can be good customers.Despite their low level of income, they are discerning consumers who want value and are well aware of the value brands favored by more af? uent consumers. This school of thought recognizes the obstacle that low income creates. It postulates that if companies take the correct steps and devote suf? cient resources to satisfying the needs of the BOP, they can overcome barriers to consumption. This view rests on Prahalad’s calculations of the immense size of the global BOP, in his view, a $1. 3 trillion dollar market. Prahalad recognizes that serving the low-income sector requires a commercial strategy in response to the needs of hose people; to succeed, other players have to get involved – mainly local and central government, ? nancial institutions, and NGOs. He proposes four key elements to thrive in the low-income market: 1 creating buying power; 2 shaping aspirations through product innovation and consumer education; 3 improving access through better distribution and communication systems; and 4 tailoring local solutions. opportunities and poverty eradication through pro? ts may set unrealistic expectations for business executives (McFalls, 2007). Second, the traditional timelines for achieving social goods versus pro? s differ (Harjula, 2005). Businesses may use a ? ve-year horizon as their benchmark for returns. In contrast, social goals like reducing smoking and other unhealthy lifestyle behaviors may take generations. Thus, rather than viewing the poor primarily as consumers, this group suggest a focus on this segment as producers, i. e. potential entrepreneurs that can improve their economic situation by increasing their income level. Companies must be willing to invest time, resources and training to insure that the producers create products with some barriers to entry and a reasonable level of productivity.They need to do so to avoid the trap of producing commodities that are easy to duplicate and, thereby, keep the poor, poor. Otherwise, alleviating poverty becomes very unlikely. Reconciling the two opposing viewpoints It is clear from the previous discussion that ? ndings in the literature about the nature, scope, and value of the BOP proposition are mixed. More research is needed on this topic to gain an accurate view of the presence and extent of opportunities at the bottom of the pyramid. The following sections examine some key elements of the BOP initiative that have been, acknowledged in the literature; speci? ally, the ? rms’ motivations to attend the BOP market, the characterization of the BOP consumers, and the BOP business model. The latter element focuses on three major issues: the role of micro? nance, the importance of establishing alliances among different actors (e. g. for-pro? t ? rms, NGOs, governments), and how for-pro? t companies need to adapt their marketing mix to attend the BOP pro? tably. The opposing viewpoint The second literature thread emerged years later in the discussion and represents a thoughtful attempt to verify the bottom of the pyramid (BOP) concept.It questions the ease with which companies may tap the BOP and whether pro? ts exist there at all (Karnani, 2007a). First, this group dismisses the published calculations about the size of the BOP and its wealth. They describe the economic size of the BOP as considerably smaller than Prahalad’s estimate and cite the inherent subsistence problem: the poor spend 80 percent of their income on food, clothing, and fuel. There is hardly anything left to spend after that (Karnani, 2007b). Second, they argue that it is very unlikely that companies will be able to attend the BOP market pro? tably.In fact, the costs of serving this segment can be very high. BOP customers are usually much dispersed geographically; they are very heterogeneous, which reduces the opportunities for obtainin g signi? cant economies of scale; and their individual transactions usually represent a low amount of money. In addition, consumers at the BOP are very price sensitive, which, again, makes pro? tability a dif? cult goal to achieve. Those factors show that the ideal that both pro? ts and social good can result from serving the BOP is questionable. First, each goal has different motivations, demands, and echanisms to satisfy and they can be contradictory. The differences between business realities and development imperatives are not easy to reconcile. Some recent case study work suggests that the early language around the inclusive capitalism idea that emphasizes unlimited business Firms’ motivation to attend the BOP market A comprehensive examination of the BOP approach requires ?rst an understanding of why for-pro? t companies engage in such an initiative. The literature suggests two main motivations that companies have to attend the BOP market: 1 they can convert this segmen t’s purchasing power into ro? ts; and 2 they can bring prosperity to the poor, and thus alleviate poverty. ? For example, in the 1970s, Nestle was able to contribute to social progress while developing a competitive advantage and making pro? ts in Moga, a district in India. With the purpose ? of establishing local and diverse sources of milk, Nestle built many refrigerated diaries and then sent its trucks to collect product while providing ? nancing, nutritional supplements, and assistance and training to the farmers. With this action, ? Nestle increased its milk production and the suppliers’ roductivity, improved the quality of the product and ? processes, and increased the penetration of other Nestle products in the region. In turn, farmers raised their standard ? of living; Nestle was able to pay higher prices, and farmers were then able to obtain credit. A second case illustrates how a focus on the BOP can be an important strategic goal, with two dimensions: pro? t ability and corporate social responsibility. Masisa is a leading company in the production and trade of wood boards for furniture and interior architecture in Latin America. It has 395The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 established the goal of generating 15 percent of the revenues from inclusive businesses, i. e. the bottom of the pyramid, before 2012. Under their de? nition, inclusive businesses must be pro? table, and socially/environmentally responsible. They expect to help improve the standard of living for low-income people by facilitating their participation in the value chain as suppliers, distributors, or other element of the hannel, and by providing them with access to products and services that can help them improve their socio-economic condition. cooperatively owned items like a television, a telephone, an electric g enerator, medical services, or even something to help make products for sale. Managing that sum for the common good presents a major dilemma: community welfare versus individual choice. People in the BOP would need a high sense of community involvement and consumer education to make responsible choices. A non-pro? t community action organization or a socially conscious business would be very helpful in marshalling cooperation.However, too many of the poor make poor choices like spending money on tobacco instead of food for their children. Even if this optimistic level of potential purchasing power exists, harnessing it for pro? t will be extremely dif? cult. One further concern questions this premise. Traditionally, serving the poor was the role of charities, not for pro? t, and other non-governmental organizations. Much of the excitement that the BOP proposition has generated stems from the inclusion of pro? t making companies in the process. The thought is that pro? t will be a po werful goad toward achieving success.Pro? t is clearly an incentive but beyond the cases cited in Prahalad’s work, there is little proof that companies can make the shift. More empirical data would aid the process of developing purchasing power. Purchasing power and pro? tability Karnani (2007a) notes that BOP concept rests on a fuzzy de? nition of the target market. It is dif? cult to ? nd an article in the BOP literature that does not cite the now popular ?gure: four billion. Four billion originally referred to those people who primarily live in developing countries and whose annual per capital income is under US$1,500 per annum.Some of the literature takes as an article of faith that the BOP exists and earns that level of income. The perception is that individually the consumers are poor but together they represent massive purchasing power. However, authors de? ne the BOP income level using several standards, which obscures its true nature. For example, Hammond et al. (200 7) consider the bottom of the pyramid as composed of people with per capita incomes below $3,000 in local purchasing power. Prahalad (2004) states that there are more than four billion people with per capita income below $2 per day at purchasing power parity (PPP) rates ($750 per year).This is a signi? cant reduction in previous estimates: four billion people with per capita income below $1,500 per year ($4 per day) (Prahalad and Hart, 2002), or four billion people with per capita income below $2,000 per year ($6 per day) (Prahalad and Hammond, 2002). Other contemporary sources like the World Bank estimated the number at 2. 7 billion, in 2001. However, other researchers characterize the World Bank projection as an overestimation, with some experts estimating the poor at 600 million (The Economist, 2004). The differences range from four billion to 600 million, a large enough gap to cause oncern. The three reported income levels range from $2-6 per day. The $2 per day criterion is con sistent with previous literature in development economics. It is important to understand that how to alleviate poverty depends on the de? nition of poverty. Using the $2 per day ? gure presents different challenges than the higher levels: people who earn less than $2 per day have very different needs and priorities than people who earn $4-6 per day. Adopting the higher poverty line obscures these differences (Karnani, 2007b) and overestimates the potential at the BOP.In principle, it is clear that collectively the mass of poor customers do hold wealth. However, an additional problem is that they do not hold it in the right concentrations. If one considers a hypothetical example, the nature of the wealth at the BOP may become a bit clearer. If a village of 1,000 adults earns an average of US$750 per year (the $2 per day ? gure), the gross earnings of the village are signi? cant. However, the question becomes how much remains after satisfying the necessities. Even if an impressive 10 percent of income remains per household, that translates into $0. 0 per day. It is dif? cult to perceive how such small sums might generate pro? ts. Collectively, the village may have $200 per day in â€Å"disposable income. † That might translate into community- Poverty alleviation and prosperity to the poor From a social responsibility perspective, there are distinct differences between a market-based approach to poverty reduction and approaches that are more traditional. Traditional approaches often focus on the very poor, proceeding from the assumption that they are unable to help themselves and thus need charity or public assistance.In contrast, a market-based approach starts from the recognition that being poor does not eliminate commerce and market processes: virtually all poor households trade cash or labor to meet a signi? cant part of their basic needs. The latter approach is the one for-pro? t companies have embraced to pursue the BOP initiative. The argument regar ding poverty is that the poor face undeveloped distribution outlets and must pay monopoly prices for the goods they desire. In addition, they are unable to afford the standard quantities and qualities of products offered to richer consumers. This is consistent withHammond et al. (2007), who describe people at the BOP as having signi? cant unmet needs, and being dependent on informal or subsistence livelihoods. They are vulnerable, poorly integrated to the formal economy, and impacted by a BOP penalty under which they pay higher prices for basic goods and services than wealthier consumers. Successful attempts to bring quality products to the poor at affordable prices would overcome the high price of poor distribution (Martinez and Carbonell, 2007). In that sense, it would increase their purchasing power by bringing previously unaffordable goods within their budgets.However, the $2 per day income limit is a signi? cant obstacle and may make this goal impossible to attain. There is som e hope in alleviating poverty but it is more in line with Karnani’s vision of the poor as producers who are able to boost their income suf? ciently to rise above the bottom of the BOP. The very recent example of ITC Limited outlined the distribution based economic problems faced by poor farmers in India. There are many factors that affect the ? ow of goods and services in and out of rural areas, and thus reduce the rural population’s income and quality of life 96 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 (Vachani and Smith, 2008). While the major source of problems was the poor transportation infrastructure, other factors operate to keep disadvantaged groups like poor Indian farmers in poverty. Buyers bully them into accepting â€Å"buyers’ prices. † Moreover, farmers are ignorant of their rights and the m arket value of their crops. In addition, they pay monopoly prices for the items they need.These factors act to keep them at a disadvantage and unable to earn the proper income from their efforts. By addressing farmers’ lack of information about the current value of their crops, the best seed to use for high yields, proper farming practice, and alternative outlets for their crops, ITC increased their welfare. To accomplish this, ITC set up a parallel distribution system, which led to increases in farmers’ income and consumption. The effort started at the grassroots with ITC hiring agents already in the ? eld and rewarding them for improvements in farmer welfare and consumption.The company placed computers with satellite based internet connections in each village and taught farmers to use them to assess current crop pricing. ITC guaranteed to match or exceed the prices offered by others. In addition, ITC provided products farmers needed like seed at a discount from the e xisting retailers. There was signi? cant â€Å"missionary† education aimed at allaying the farmer’s fears of exploitation. After a few farmers tried the system, more of them signed on. The result was increased income, higher satisfaction, more independence, and lower cost to purchase supplies.The example is encouraging and demonstrates the commitment and stamina organizations need to operate at the BOP. ITC set up a private distribution network that was more closely associated with a cooperative than the typical channel. Farmers and grassroots agents who knew their needs very well cooperated to operate the channel and share in its economic bene? ts. In essence, ITC adopted Karnani’s model of buying from BOP producers to raise their level of income developing them into pro? table customers. Can companies really generate pro? ts and alleviate poverty at the BOP? This example seems to show that they can.It also shows the extent to which companies will have to re-en gineer their approaches and operations to succeed. There is some data on the changes in the size of the BOP that aid in forecasting the future. Chen and Ravallion (2007) report a decline in the proportion of people living under the poverty line in the developing world over the period 19812004. That represents a reduction of about 0. 8 percent points per year over the period. Separate from the numbers, the question remains, â€Å"Who are BOP customers? † Current demographic labels such as â€Å"blue-collar’ or working-class,† fail to capture the extreme level of poverty.As marketers gain more experience with the BOP, it is possible that other useful differentiations may emerge based on speci? c variables, such as behavioral or psychographic. The global distribution of BOP customers adds another factor to consider: culture. The cultures of Latin America, Asia, and Africa differ widely. It is logical that differences in culture will affect future attempts to unders tand the needs of the BOP segments. In general, D’Andrea et al. (2004) ? nd that consumers at the BOP spend a higher portion of their income on consumer goods (50 to 75 percent), as compared to wealthier segments (around 35 percent).These authors also ? nd that, due to their limited and unstable cash ? ow, lowincome consumers tend to shop daily and spend small amounts of money each time. Then too, they are reluctant to buy in places that are located far away from their homes. The ? ndings show that â€Å"stay at home† mothers make most of the purchases and family spending decisions; by doing this, they ful? ll roles as wife, mother, and household manager. Companies currently devote resources to listening to the voice of the customer and are con? dent in their efforts with currently serviced segments. A change of focus to the BOP ill require new techniques, and freedom from â€Å"accepted knowledge. † The BOP is so radically different that companies will have to ignore what they know as â€Å"truths† that may not apply anymore. Faulty new product development eradicates the potential for pro? t and unfamiliar product development (NPD) territory increases the risks of failure. Firms can increase their NPD success rates by integrating consumers into the process as boundary spanning team members instead of mere respondents to surveys. Thus, product development will bene? t from the input of customers at the lowest levels of income (Pitta and Franzak, 1997).However, that initiative will be supremely different from current successes. A good example of how companies, NGOs, governments, and other institutions can collaborate in this aspect is the formation of BOP learning laboratories (McFalls, 2007). The laboratories were designed to investigate the complex factors that interact at the BOP as well as opportunities for both sustainable and human development. More initiatives like this one are needed, as well as research on the characteristic s of the BOP consumers. Characterization of BOP consumers A fundamental requirement to attend the BOP market uccessfully is to know deeply the characteristics of the people in this segment. Some academic studies and reports from NGOs have contributed re? ning the understanding of the BOP: how many they are, where they are located, what their income level is, and what some of their characteristics in terms of needs and habits are. According to Hammond et al. (2007), the BOP is concentrated in four regional areas: Africa, Asia, Eastern Europe and Latin America and the Caribbean. 12. 3 percent of the BOP lives in Africa, 72. 2 percent in Asia, 6. 4 percent in Eastern Europe and the remaining 9. 1 percent lives in LatinAmerica and the Caribbean. Rural areas dominate most BOP markets in Africa and Asia while urban areas dominate most in Eastern Europe and Latin America and the Caribbean. Estimates of the size of the BOP in US dollars or buying power approximate $1. 3 trillion. The Asia m arket has a buying power of $742 billion, Latin America market is $229 billion, the Eastern Europe market $135 billion and Africa $120. The BOP business model In spite of the opposing viewpoints in the literature regarding the extent to which there is a business opportunity at the BOP, there is agreement that serving the low-income sector ro? tably requires a different business model (Chesbrough et al. , 2006; Prahalad and Hart, 2002). Prahalad and Hart (2002) state â€Å"doing business with the world’s four billion poorest people – two thirds of the world’s population – will require radical innovations in technology and business models†. Moreover, the market at the BOP requires a 397 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 combination of low cost, good quality, sustainability, and pro? ability (P rahalad and Hart, 2002). As a result, for-pro? t ? rms need to understand how the BOP segment differs from upper tiers, and adapt the marketing approach to meet the characteristics of consumers at the bottom. Prahalad’s concentration on the bottom of the pyramid requires a sea change in a company’s approach to business. Attempts to reap pro? ts from the BOP using current marketing techniques will fail. Failure will result because the products are too expensive or complicated, are not available in small enough quantities or sizes, or are simply not what the poor want. The BOP is not low hanging fruit.It is a market with potential, and achieving that potential will require costly effort and innovative strategies (Seelos and Mair, 2007). Even with a completely new management approach, evidence suggests that pro? ts at the bottom of the pyramid may be elusive (Karnani, 2007a). The literature suggest that the three most critical aspects in developing a new business model to serve the BOP are the access to credit, the establishment of alliances, and the adaptation of the marketing mix. The following subsections address these issues. still in its early stage in countries like Brazil, Mexico, and Argentina.Most of the banks that have participated in micro? nance are large commercial banks in search of new and attractive markets. The main reasons for commercial banks to attend the BOP have been: . the strong competition among large banks; . the evidence by NGOs supporting the BOP initiative; . the social responsibility dimension; . the opportunity to diversify their business operation; and . the possibility of working together with other institutions, like NGOs and governments. According to Westley (2007), by the end of 2005, there were 30 commercial banks in Latin America oriented to the microentrepreneurs.The establishment of alliances There is recognition that serving the BOP requires the involvement of multiple players, including private companies, go vernments, nongovernmental organizations (NGOs), ?nancial institutions, and other organizations – e. g. communities – (Prahalad and Hart, 2002). By infusing the pro? t motive into value creation, the hope is that private companies will take the leading role in serving the BOP and, thus, the purpose of alleviating poverty will more likely succeed. Prahalad and Hart (2002) suggest that, among private companies, multinational corporations (MNC) with extensive ? ancial resources are in the best position to lead the process of selling to the poor. However, MNC’s have built-in weaknesses that limit their potential for success with these consumers. They are simply too large, too rigid and too far from the customer to be effective. Instead of the top down approach that MNC’s represent (McFalls, 2007; Harjula, 2005), a bottom up process is necessary (Karnani, 2007a). Changing perspectives from top down to bottom up is so complicated that if MNC’s are to be involved, they may have to create ? exible subsidiaries free from the corporate structure, processes, culture, and assumptions.ITC has succeeded using that model and has done so at the grassroots level. Therefore, more research is needed to ? nd out under which circumstances MNC’s or other types of private company should lead the BOP initiative. This line of reasoning is consistent with D’Andrea et al. (2004) who, in the context of retailing in Latin America, suggest that smallscale independent supermarkets and traditional stores are more likely to reach emerging consumers than MNC’s. Likewise, NGOs have been critical in the development of the business model infrastructure in several successful cases of for-pro? t ? rms serving the BOP.For-pro? ts have created sustainability for the technology used (Chesbrough et al. , 2006); NGO’s, understand people’s needs. In addition, NGO’s are closer to people at the BOP, and are better prepared to educ ate them. For example, in Uganda, Africa, the NGO Infectious Disease Institute in Kampala collaborated with P? zer by educating people about the causes of AIDS, and how to prevent and combat it. This facilitated P? zer’s initiative to provide these people access to drugs that combat HIV/AIDS (Chesbrough et al. , 2006). Lastly, the public sector has an important role in developing the BOP proposition.The focus is changing from traditional governmental assistance delivery, to different ways of creating a sustainable environment for aiding the BOP. For example, Micro? nance Microloans are well known and originally seemed like the answer to self-suf? ciency. The concept that a poor consumer could gain a small loan and become a producer contributing to family income and independence is tantalizing. There is evidence that microloans have succeeded in aiding the bottom of the pyramid. There is also evidence that many of the would-be entrepreneurs failed to capitalize on such credit. They got deeper into debt (Karnani, 2007a).Some authors point out that the entrepreneurial skill that can lead to success is rare. Most individuals would rather have a guaranteed income rather than assume the risk that entrepreneurship entails. This adds to the argument that if businesses can create jobs and boost the poor’s income, then consumption will follow. Those businesses may not be able to obtain outside ? nancing. The BOP segments are not able to generate suf? cient pro? ts to justify a high cost of capital. To reduce the cost of capital, perhaps collaboration with funding sources like the World Bank or other NGO will be necessary.With ?nancial aid, companies trying for the BOP market may be able to succeed. The creation of buying power is one of the key elements that allow low-income segments to reach product and services. Formal commercial credit has been unavailable to this market and the cost of accessing and getting ? nancial services in the informal ? nancial market is enormous. Since the pioneering initiative of Grameen Bank, in the mid of the 1970’s, several ? nancial institutions have been very successful in offering ? nancial services to low-income people who were not traditionally served by the formal bank system.Programs for microcredit have characteristics that are speci? c and different from those of the traditional banking sectors. These differences include property and corporate governance of the institutions, characteristics of the consumers, the technology used to manage credit, and the characteristics of the product and service. The growth of the microcredit market has been heterogeneous across countries. For example, in Latin America, the micro? nance industry has had a signi? cant ? growth in countries like Peru, Bolivia and El Salvador but it is 398 The quest for the fortune at the bottom of the pyramidJournal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2 008  · 393 –401 the provision of funding and training to entrepreneurs is a way governments can support consumers and producers at the BOP. Another example is engineering supportive tax structures that promote private sector investment in BOP initiatives. distribution makes the poor poorer. Today, with escalating global fuel costs adding to the cost of transportation, the poor face an increasingly rigorous future. The lack of infrastructure serving rural areas also increases prices.For example, in Chile, consumer goods prices in the remote North and South of the country are 20-25 percent higher than the more highly populated central zone of Santiago and Valparaiso (Ferreira and Litch? eld, 1999). The idea of closeness in distribution channels for consumers at the BOP is very important. This means, for example, having stores that are both geographically close and affectively close. In other words, emotional proximity is also very important. A good example is Banco Estado, a stateowned commercial bank, which consumers consider the â€Å"closest† to the BOP segment.The reasons are its extensive distribution, its perception of being adaptive to people’s needs, its ? exibility, and its position as affectively close. In the context of retailing, D’Andrea et al. (2004) show that the development of personal relationships with the stores’ personnel has a positive effect on consumers’ self-esteem and well-being. Pricing for the bottom of the pyramid is, of course, also very critical. The challenge here is twofold. On the one hand, there is the issue of affordability: prices need to be affordable to BOP consumers. Ramaswamy and Schiphorst (2000) emonstrate the challenges in companies trying to serve the poor. In order to achieve affordability, they must reduce the costs of production and simplify the products. On the other hand, ? exibility in payments is also very important. Providing options of how and when low-income consume rs can pay for their products and services constitutes both a challenge and a source of competitive advantage to private companies. To do this, private companies may need the assistance of commercial banks and NGOs as key partners. Some marketing theorists (Karnani, 2007b) view the BOP as a collection of producers rather than consumers.Therefore, innovative payment models, which allow BOP consumers to pay using a marketing exchange model would increase their ability to pay for the things they consume. The ? Nestle milk agricultural exchange model cited above comes to ? mind. In that model, Nestle actually paid farmers for their milk at attractive prices. They could use the money to buy seed at equally attractive prices. It is a small step to consider a more traditional barter system. As long as the barter system offered fair pricing it would present a win-win situation that would help sustain the arrangement. The marketing mixIt is no surprise that serving different market segments may require different marketing mixes. Therefore, for-pro? t ? rms need to understand how the BOP segment differs from upper tiers, and adapt the marketing approach to meet the characteristics of these consumers. Since affordability is at the heart of serving the BOP, product modi? cation will help lower the price and improve affordability. The parallel strategy, reducing product size works in higher customer tiers but has limited usefulness at the lowest levels. In India, unit-use reduced size cachets of shampoo do promote consumption but are not the answer.The higher cost of packaging erodes pro? ts, and the resulting discarded packaging adds to pollution. The problem remains that the customer still has to allocate scarce income to the shampoo. One answer is to create a bare-bones product with fewer product features that the poor can afford. One example, Nirma detergent made in India, highlights a â€Å"poorer† product that is affordable. A single entrepreneur created Nirma to compete with Hindustan Lever’s market leading detergent, Surf. Surf gained market share because it is an excellent product. It has numerous additives that make it effective yet gentle to humans.Its cost was signi? cant. In fact, Nirma does not contain many of the ingredients and safeguards of its rival. It works but can cause blisters on the skin (Ahmad and Mead, 2004). Despite its harshness, the poor embraced it because they could afford it. The implication is that â€Å"research must also seek to adapt foreign solutions to local needs† (Prahalad and Hart, 2002). Evidence shows that consumers at the BOP care about branded products, because leading brands are a guarantee of product quality, which is particularly important to this segment because â€Å"the ? ancial loss from an underperforming product is greater for people with limited incomes† (D’Andrea et al. , 2004, p. 6). However, emerging consumers are not very loyal to speci? c brand names, altho ugh they do not experiment with unknown brands. In practice, they switch among a few known brands (D’Andrea et al. , 2004). D’Andrea and colleagues also argue that low-income consumers prefer products in small sizes, even if the perunit cost is higher, because of their income and space constraints. Moreover, too many varieties of products can harm emerging consumers’ purchasing experience. They may eel tempted to buy things they don’t need or can’t afford, which can produce a feeling of inferiority or frustration (D’Andrea et al. , 2004). Marketers also need to revisit distribution channels also to attend the BOP market effectively. Vachani and Smith’s (2008) recent work dealing with inclusive distribution has merit as a model for success. In essence, their examples infused a social action philosophy into a business model. One of their focal companies, ITC, demonstrated the vision necessary to discern pro? ts in the future and the det ermination to invest in a new distribution channel as a in-win proposition. Undoubtedly, the high cost of Conclusions and challenges for marketing theory and practice While the picture is not completely clear, the bottom of the pyramid may offer opportunities to create value for both the poor and companies. Early promises of a fortune seem to have been overstated. The degree of wealth present among the poor is much lower than ? rst reported. In addition, that wealth is too fragmented to be tapped under the current business models. It now appears that the basic concept overestimates the role that BOP consumers can play in contributing to company pro? ts.There is still no agreement in the literature about how bene? cial selling to the BOP can be for private companies, or for alleviating poverty. However, there are several elements of the BOP proposition that have been identi? ed as critical to 399 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Den nis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 succeed. First, an accurate characterization of the low-income sector – both as consumers and as producers – is required to understand their needs, perceptions, and behavior, which in urn will help companies to design a better business approach. Second, it is important to recognize that serving the BOP market requires a different business model, one incorporating access to microcredit, the establishment of alliances of collaboration among different types of institutions, and the adaptation of the marketing mix. â€Å"Until companies better understand the needs of emerging consumers and adapt their business models to serve them more ef? ciently and effectively, their growth will be limited† (D’Andrea et al. , 2004, p. 3). It is well known that BOP markets involve managing ubstantial challenges in technical and economic infrastructure, education, ? nanc ial resources, and cultural differences. As participants from the economic sectors progress, a number of questions need to be addressed. Gardetti (2005) articulated them clearly. They include: â€Å"How can a company turn its strategy at the BOP into a competitive advantage? What kind of business model will work? How can it build trust in the informal economy? What kind of education do business schools need? How does new technology integrate? How can we develop the educational/ social infrastructure? Moreover, from the viewpoint of egulatory and policy formulation, if entering the markets at the base of the pyramid is a sound choice for both development and business, what does it take to turn this into a reality? † Scholarly research, as well as practitioners’ participation in BOP initiatives, can provide some answers to clarify the true nature and scope of the fortune at the bottom of the pyramid. example in India showed its value in distribution and in customer relat ionship management. It will be equally valuable in research, product development, pricing, and promotion. Fourth, pricing is of paramount importance in serving the oor. In a for-pro? t enterprise, consumers must pay for the cost of serving them. Microcredit is one potential solution. It may be a limited solution, useful only to consumers with the skills necessary to manage it. However, innovative exchange models may offer even those without ? nancial management skills a chance to improve their condition. Fifth, given the economies of the BOP, it is likely that if pro? ts come, they will come later rather than sooner. Organizations need to choose a long-term involvement in order to avoid disappointment and a ? nancially ruinous midterm decision to exit.Finally, marketers should understand that some products are simply not suited for the poorest of the poor. Some products of dubious value to this segment, like Armani handbags, or even cheap counterfeits, will have no place at the BOP. More importantly, some products and services related to health care will always be simply too expensive. Altruistic surgeons may care for uniquely disadvantaged patients by donating their time but they are only one part of a surgical team. Even if the hospital and every member of the team donate facilities, their time, and the resources to save a atient, that model is not sustainable as a for-pro? t venture. Similarly, the cost of a ten-day supply of a life-saving antibiotic cannot be reduced realistically using the â€Å"smaller package size† option. The implication would be either reduced daily doses or fewer full strength doses. Both are likely to breed drug resistant organisms and thereby threaten the life of the patient and society. To remedy this situation, other players like governments and NGO’s will be important. Many marketers must realize that collaborating with them is important. To be effective, the collaboration must be proactive.Marketers wishing to ser ve the BOP, who recognize the importance of alliances with others, should seek out relationships with both government and NGO’s. Early and persistent outreach will be valuable in alerting all of the players to each other’s strengths and in creating an accurate picture of the challenges. Politically, coalitions of organizations with different fundamental objectives are prone to misunderstanding. Often their terminology is similar but the meaning is different. Alternatively, their objectives may be so totally different that they are fundamentally foreign to one another.If the goal is poverty eradication at a pro? t, all the players must collaborate. The goal may be so dif? cult and achieving effective teamwork is essential. Implications for marketers In general, if pro? t-seeking companies plan to serve the BOP, numerous factors will have to change. First, marketers will have to approach the BOP in a novel manner different from any they used in their prior successes. The BOP is mostly unknown territory. They may have to reinvent themselves or create divisions with substantial independence. If the old segmentation rules that worked at the TOP no longer apply, either will the product development, sales, pricing, distribution policies, and management. In addition, the pro? t objectives and revenue goals will have to be changed. Those who are not prepared to address the sea change in marketing approach should avoid entering this market. Second, simply modifying products and selling them is a path to failure. Success will depend on knowing the BOP intimately. Currently the BOP is terra incognita in terms of segments and their needs. To succeed, marketers must be able to differentiate different income segments and their value. Within the various BOP de? itions, there are three apparent segments, â€Å"under $2 per day†, â€Å"$4 per day†, and â€Å"$6 per day†. The needs and incomes of the segments seem to differ enough to indicate t hat they be treated differently. Marketers need to know which ones to serve and how to serve those successfully. Third, in order to understand the voice of the BOP consumer, companies need grass roots sources of intelligence. Collaborating effectively with agents â€Å"on the ground† who have direct contact with relevant BOP segments is vital. Moreover, companies must train those agents to seek ? information that will help serve those customers.The Nestle References Ahmad, P. S. and Mead, J. (2004), Hindustan Lever Limited and Project Sting , Darden Business Publishing, Charlottesville, VA. Chen, S. and Ravaillon, M. (2007), â€Å"Absolute poverty measures for the developing world, 1981-2004†, Policy Research Working Paper 4211, World Bank, April. Chesbrough, H. , Ahern, S. , Finn, M. and Guerraz, S. (2006), â€Å"Business models for technology in the developing world: the role of non-governmental organizations†, California Management Review, Vol. 48 No. 3, Spri ng, pp. 47-62. 400 The quest for the fortune at the bottom of the pyramid Journal of Consumer MarketingDennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 D’Andrea, G. , Stengel, E. A. and Goebel-Krstelj, A. (2004), â€Å"Six truths about emerging-market consumers†, Strategy and Business, Vol. 34, pp. 2-12. (The) Economist (2004), 13 March, p. 84. Ferreira, F. G. H. and Litch? eld, J. A. (1999), â€Å"Calm after the storms: income distribution in Chile, 1987-1994†, World Bank Economic Review, Vol. 13 No. 3, pp. 509-38. Gardetti, M. A. (2005), â€Å"A base of the pyramid approach in Argentina†, Greener Management International, Vol. 51, pp. 65-77. Hammond, A. L. , Krammer, W.J. , Katz, R. S. , Tran, J. T. and Walker, C. (2007), The Next 4 Billion. Market Size and Business Strategy at the Base of the Pyramid, World Resource Institute, International Finance Corporation. Harjula, L. (2005), â€Å"Tensi ons between venture capitalists’ and business-social entrepreneurs’ goals: will bottom-of-the pyramid strategies offer a solution? †, Greener Management International, Vol. 51, pp. 79-87. Hart, S. L. (2005), Inclusive Capitalism: The Unlimited Business Opportunities in Solving the World’s Most Dif? cult Problems, Wharton School Publishing, Upper Saddle River, NJ. Karnani, A. 2007a), â€Å"The mirage of marketing to the bottom of the pyramid: how the private sector can help alleviate poverty†, California Management Review, Summer, Vol. 49 No. 4, pp. 90-111. Karnani, A. (2007b), â€Å"Misfortune at the bottom of the pyramid†, Greener Management International, pp. 99-110. Martinez, J. L. and Carbonell, M. (2007), â€Å"Value at the bottom of the pyramid†, Business Strategy Review, Autumn, pp. 50-5. McFalls, R. (2007), â€Å"Testing the limits of ‘inclusive capitalism’: a case study of the South Africa HP iCommunity†, T he Journal of Corporate Citizenship, Vol. 28, Summer, pp. 85-98. Pitta, D. A. and Franzak, F. 1997), â€Å"Boundary spanning product development in consumer markets: learning organization insights†, Journal of Product & Brand Management, Vol. 6 No. 4, pp. 235-49. Prahalad, C. K. (2004), The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Pro? ts, Wharton School Publishing, Upper Saddle River, NJ. Prahalad, C. K. and Hammond, A. (2002), â€Å"Serving the world’s poor pro? tably†, Harvard Business Review, Vol. 80 No. 9, pp. 48-57. Prahalad, C. K. and Hart, S. L. (2002), â€Å"The fortune at the bottom of the pyramid†, Strategy and Business, Vol. 26, January, pp. 54-67. Ramaswamy, E. A. and Schiphorst, F.B. (2000), â€Å"Human resource management, trade unions and empowerment: two cases from India†, The International Journal of Human Resource Management, Vol. 11 No. 4, pp. 664-80. Seelos, C. and Mair, J. (2007), â€Å"Pro? table bus iness models and market creation in the context of deep poverty: a strategic view†, Academy of Management Perspectives, November, pp. 49-63. Vachani, S. and Smith, N. C. (2008), â€Å"Socially responsible distribution: distribution strategies for reaching the bottom of the pyramid†, California Management Review, Vol. 50 No. 2, Winter, pp. 52-84. Westley (2007), Commercial Banks in Micro? nance: BestPractices and Guidelines for Project Design, Monitoring, and Evaluation, IADB, MSM – 138. Zeithaml, V. A. , Rust, R. T. and Lemon, K. (2001), â€Å"The customer pyramid: creating and serving pro? table customers†, California Management Review, Vol. 43 No. 4, Summer, pp. 118-34. Further reading Anderson, S. N. (1994), â€Å"Unions/management create collaborative culture†, Communication World, Vol. 4 No. 1. Corresponding author Dennis A. Pitta can be contacted at: [email  protected] edu To purchase reprints of this article please e-mail: [email  protect ed] com Or visit our web site for further details: www. emeraldinsight. com/reprints 401

Points of Concern in the Company’s Evaluation Form Essay

The evaluation form currently being used by the company has many points of concern. First, it takes a look at the personal characteristics of the employee such as friendliness and attitude towards work. These criteria must be taken into account, however, results / accomplishments of the employee must be considered. It must be noted that assessing characteristics of the person in relation to the job may not be very credible since the rater can be very subjective. The fact that the manager discontinued the evaluation to give it a thought is a proof that the manager has little confidence that the evaluation process is credible and acceptable to all. It must also be noted that the engineer himself is not confident about the process, claiming that no one is qualified to evaluate him since he is the only trained engineer in the company. Value of Common sets of Evaluation Criteria Having a common set of evaluation forms for all employees can post problems especially when employees compare the results of their performance evaluation. It is best to set realistic targets first and then come the appraisal period; these will be checked if they were accomplished excellently. The form can be common but the measures will be varied based on the position of the employee and the function. On the other hand, using common sets of evaluation criteria also have advantages. First, it would be easy for the managers and employees to understand since evaluation forms are similar across positions or functions. Second, come promotion or lateral employee transfer, raters in the evaluation procedure won’t have any difficulty in going through the process since nothing has changed even if employees delivered varying results. For employees, even if they adjust themselves with the demands of the new job (lateral transfer or promotion), what is expected of them has not changed as stipulated in the evaluation forms. What Should be Evaluated? Given the company’s evaluation form, the Balanced Scorecard developed by Kaplan and Norton can be adopted. The Balanced Scorecard takes into account all perspectives that contribute to the accomplishment of the job. â€Å"The Balanced Scorecard translates mission and strategy into objectives and measures organized into four perspectives: Financial, Customer, Business Process and Learning and Growth. † (Kaplan and Norton). The Financial perspective is the ultimate indicator of whether the strategies being implemented contribute to the achievement of the company’s objectives and goals. This can be measured through percentage in savings, return on investment, actual sales versus sales target, etc. For the Customer Perspective, â€Å"the core outcome measures include customer satisfaction, customer retention, customer acquisition, customer share, etc. † In the Business Process Perspective, results are being taken into account. The measures should answer the question: What processes / transactions should the employee be good at? These processes include everyday transactions of the employee. The measures under this perspective should have a direct impact on how the company takes care of the customers. For example, a Marketing Associate must be good at conceptualizing and delivering good marketing programs. The Learning and Growth Perspective focuses on the development and competencies of the employee. Competencies such as attitude towards work, teamwork, integrity, timeliness, etc can be taken into account. For some companies, they require employees to submit reviews of prescribed books, articles and movies to build a culture of learning within the organization. The four perspectives developed by Kaplan and Norton are inter-related and must all contribute to the achievement of the Financial objectives. The relationship can be two-pronged, which means a focus on one perspective will have a significant effect on the other perspectives. Ideally, when the organization takes care of the people and make them equipped with the necessary skills (Learning and Growth), they will excel in the workplace and can do their jobs well (Business Process). If they can do the job well, customers will be delighted because quality products and services are delivered to them (Customer). If customers are delighted, they will be loyal to the company’s products and services, thus, will translate to revenues or profit. Involving Other Raters in the Appraisal Process Aside from the Balanced Scorecard, the company can also use the 360 degree feedback. Involving different persons in the evaluation process or multi-rater feedback is beneficial for developmental purposes (Madigan, 1999). The ratee can have an idea on the different things that he has to improve on. As Madigan (1999) quoted Mark Edwards, co-author of the book 360 Degree Feedback: The Powerful New Model for Employee Assessment & Performance Improvement, â€Å"Single-source feedback is not very credible to managers and employees. When people get feedback from a boss, they often just don’t believe it. Whereas, if they get the same feedback — saying the same thing — from multiple sources, they believe it. † Drawbacks of Involving Other Raters in the Appraisal Process However, multi-rater feedback or 360 degree feedback has not been validated as a tool for performance appraisal. This is especially when the raters are not consistent on what they say about the ratee. Survey fatigue can also be a factor (Madigan, 1999). Employees may find exhausting to rate a lot of their colleagues in their company. Also, raters have a natural tendency to become subjective in the appraisal process. -Edwards, as again quoted by Madigan (1999) said that his favorite use of the 360 degree feedback is for talent assessment and promotions as the method gives the management an overview of who will succeed in the organization. As Madigan (1999) says, â€Å"Legal concerns can arise when a 360-degree instrument, valid only for development purposes, is used for performance appraisal. The Center for Creative Leadership, a nonprofit, educational organization, sells 360-degree instruments, but they are not for appraisal (due in part to the group’s policy of dealing only with leadership development). Dalton explains, â€Å"Anytime you are going to use something that calls itself a test, or a measurement tool, it has to be validated to show that the score means something and that what you are going to use it for is an appropriate purpose. If someone takes you to court, your validation strategy has to be such that you can say, ‘Yes, your honor, we have validated this tool, and it is perfectly acceptable for me to give Carol a 20 percent raise and Maxine a 5 percent raise based on what we understand about this test. ’ Our instruments have not been validated for appraisal purposes, and so we tell people when we sell them, that, in essence, if they use them that way, they will be in court alone. † Errors in the Appraisal Process that are Caused by Bias Also, it must be noted that performance appraisal methods are affected by several factors that can disrupt the whole process thus, neglecting the true purpose of the Performance Evaluation System. In organizations where managers or superiors usually rate employees, de Koning (2004) says that they are usually subjective in evaluating employees especially when the evaluation rating is linked to a performance bonus or an increase in pay. De Koning (2004) even noted that in one organization surveyed by Gallup, employees refer to the performance appraisal as â€Å"the form you need to give out to give a person a raise. † With this culture in the organization, managers will be pressured to control the performance appraisal to give everyone a raise. In some cases, this control can even be used by the rater to deliberately disqualify a ratee from a raise, especially when they are not in good terms. For the employees’ side, they would tend to currying favors for their superiors rather than focusing on excellently performing their respective business processes. There is also the HALO effect. This is when one performance criteria influences the rating in another. For example, if an employee is often absent, other factors will be lower than normal. Citing of critical incidents are also factors for biased because these may be isolated cases only. Consistency in these incidents must be established so that appraisal results would be credible. A culture of feedback must also be developed so that members of the organization will take the performance appraisal process seriously. In many organizations, the HR units usually send notices reminding everyone to beat the deadline for submission of results of performance appraisal. This is an indicator that the organization crams about the process and not interested to it. Whenever this scenario happens, both raters and ratees would always hustle the ratings just to submit on time, thus to receive a raise. Timing is also a factor. Performance Appraisal periods must not coincide with other company projects, events or busy period of the year so that the employees’ attention will be focused on the process. If employees are busy delivering business results, they might not have enough time to do the appraisal process and thus, cramming about it just to beat the deadline. Performance appraisal must be given time such that the employees’ exemplary results and points for development can be properly highlighted. Other Performance Appraisal Techniques There are a lot of performance appraisal methods that can be adopted by the company. Methods include the Critical Incident Method where the rater lists down incidents that had an impact to the performance of the employee. The Weighted Checklist is a list of effective and ineffective behavior on the job. Essay Evaluations are narratives prepared by the rater about the performance of the employee. However, this method is highly dependent on the ability of the rater to articulate his thoughts into writing. Another technique is the Management by Objectives (MBO) method. In this method, the managers set objectives for the employee. MBO focuses on what is accomplished rather than how it is accomplished (Ngo, D. , 2009). It must be noted that the Critical Incident Method and Essay evaluations tend to be subjective and focus on the behavior or competencies while the Weighted Checklist and the Management by Objectives measure results. Results look at the expected outputs of the job while competencies are sets of skills, behavior and knowledge that drive the delivery of outputs. However, these methods may work for if fit for the type of organization (e. g. MNC, NGO, GO, etc. ) As stated in wikipedia. org, there is also the Behaviorally Anchored Rating Scales that are used to report performance. It is an appraisal method that seeks to combine the benefits of narratives, critical incidents, and quantified ratings by securing a quantified scale with specific narrative examples of good or poor performance (wikipedia. org). How to Improve the Evaluation Form The company can evaluate the above methods and study which is the most appropriate and acceptable to the employees and management. Company culture and practices must be taken into account when adopting a particular method. The company must also take into account that their strategies must be linked with the appraisal method. However, every company can adopt a generic method that has three phases. Phase 1 is setting of expectations. Usually, management set these expectations during Strategic Planning Sessions where it stipulates what should be delivered within a given period. Phase 2 is monitoring. Delivery of results must be monitored so that appropriate interventions can be implemented to drive the results. The last phase is the evaluation and follow through. This is the evaluation proper and when next steps are identified for the development of the employee. To determine the appropriate evaluation form, the question of what is expected by management must be answered. If management expectations focus on competencies such as customer orientation, decision-making, teamwork, etc. Whatever the case is, the above techniques can be used. For the case of the engineer, the Balanced Scorecard can be used since it can integrate both results and the competencies. A balanced weight for both will add credibility to the appraisal process. The weight can be based on what is more important for the company, results or competencies? Whatever the case is, results of evaluation must be justified or can be explained well by the rater. Also, appraisal must be about performance and not the importance of the job. Usually, organizations benchmark with others regarding their performance management systems. Also, HR Consultants can be hired to help the organization improve the appraisal system. It is suggested that the company do an organizational diagnosis first. An organizational diagnosis will give the company the necessary data that will improve the performance management system. After the organizational diagnosis, they should develop a framework that will link the performance appraisal rewards. It must be noted that linking performance with rewards will make employees more motivated in their job. After this, the company can develop their system. As stated above, planning sessions must be done to communicate to the employees their key result areas (KRAs). Once KRAs are identified, a per division or department meeting must be done to identify how these KRAs will be measured. For example, it is a KRA of a manager to send his or her subordinates to training. This can be measured by the number of employees sent. A 100% attendance of subordinates can be the â€Å"outstanding† while 50-99% is â€Å"satisfactory. † This must be done to all positions. Once the employee knows how exactly he or she will be measured, he or she can easily determine if the job is being done well or not. Doing these steps can make the evaluation process in the company more credible and objective to employees. References: De Koning, G. M. J. 2004. Evaluating employee performance (part 1). Retrieved June 14, 2009, from (http://www. whatmakesagoodleader. com/Employee Performance-Evaluation. html) Kaplan, R. and Norton, D. 1996. Translating strategy into action: the balanced scorecard. Harvard Business School Press. Boston, Massachusetts. Madigan, C. O. 1999. Full-circle feedback. Retrieved June 13, 2009, from (http://businessfinancemag. com/career-hr). Ngo, Davi. (2009). Performance appraisal methods. Retrieved June 13, 2009, from (http://www. humanresources. hrvinet. com/performance-appraisal-methods/). Wikepedia. org. Behaviorally anchored rating scales. Retrieved June 13, 2009, from (http://en. wikipedia. org/wiki/Behaviorally_anchored_rating_scales).

Graffiti Art Essay Example | Topics and Well Written Essays - 1250 words

Graffiti Art - Essay Example The new investigation technique is cracking down on gangs using GIS.As graffiti become the signature move for gangs, the police department is coming up with plans to take help of this illegal act for their positive purpose of busting the gang members. Each gang maintains its unique attributes. The weapons, their purpose and their future plans, can be calculated by these paintings in the streets. The GIS system is a combination of spreadsheets and Excel documents, which allocates graffiti locations and works to help mark the range of territory of the gangs. This system efficiently helped to trace ‘F-stones’, one of the reputed gang of the country. The book â€Å"Wallbangin’: graffiti and gangs in L.A’ written by Susan A. Phillips, begins with a short story of graffiti. The art started as a form of cultural and artistic combination at art. Everyone used to adore the beauty on streets but soon the evil side of US population took it as mean to symbolize their gangs and its activities. Susan enlightens the reader about how the habitat, ethics and culture of gangs affects the way they create graffiti. The book â€Å"Wallbangin’: graffiti and gangs in L.A’ written by Susan A. Phillips, begins with a short story of graffiti. The art started as a form of cultural and artistic combination at art. Everyone used to adore the beauty on streets but soon the evil side of US population took it as mean to symbolize their gangs and its activities. Susan enlightens the reader about how the habitat affects the way they create graffiti. ... Everyone used to adore the beauty on streets but soon the evil side of US population took it as mean to symbolize their gangs and its activities. Susan enlightens the reader about how the habitat, ethics and culture of gangs affects the way they create graffiti. They used it for impolite communication with the antagonistic gangs and also as a mean to create warning signals for the civilians or the security agencies. Los Angeles, as being a populated city serves as a home for many of these gangs marked by their graffiti art. The author of the book â€Å"the graffiti subculture: youth, masculinity, and identity in London and New York’, by Nancy Macdonald, addresses the topic ‘graffiti’ with a rather socialist and psychological approach. The greed for fame, authority and power rules the mind of every man who seeks for some kind of evil. The young blood involved in the acts more often. Researchers have observed that most of the wall paintings near to colleges and uni versities seem to advertise some of the nick names of the students or expressing some emotions that are hard to express. Graffiti became a lucky medium for students until the legal or illegal debate began. Also the writer expresses grief concern for graffiti leading to masculinity, which can also be a crime. In the book ‘legal guide for the visual artist†, author Crawford educates the people about the concern of growing number of ‘graffiti’ artists throughout the world, and especially in US urban center. The US government has criminalized the graffiti art-work and any person found guilty of thrashing a person’s property is held responsible and abducted. Under the law, graffiti is termed as engraving, painting, layering, drawing upon or

Employee telecommuting is good for companies because it helps to Essay

Employee telecommuting is good for companies because it helps to conserve energy, protects the environment (because there are le - Essay Example Telecommuting, e-commuting or Working from Home (WFH) is a new concept in the marketplace. â€Å"Telecommuting is the act of working at a remote location, usually at home, rather than traveling to and from an office. Telecommuters typically telecommute one to three days a week and commute to the office for the balance of the time† (Boyd, 1996: para.1). In this new work arrangement, the employees use telecommunication technology to commute with their work place. What enabled telecommuting was the invention of portable computers and wireless-based networks. Such devices make it possible for anyone to work anywhere seamlessly without the need to plug into an electric outlet for power or cabled internet connection. The benefits of this new use of technology are huge. With telecommuting, organizations have reported up to 30% reduction in overhead expenses when they schedule their employees telecommuting days appropriately. They have consequently reduced their office space requireme nts and rents by requiring the telecommuting employees to share desks and other resources and facilities in the company offices (Boyd,1996). Now, anyone can work from any wireless hotspot place such as cafes and airport lounges (Clark, n.d.).Moreover, the convenience for employees and the benefits of telecommuting to the entire society are immense. Telecommuting is more economical not only for organizations but also for employees who save a lot of money on transportation allowances, clothing and food spent on lunch or snacks outside the home. Companies not only save on rent, by getting smaller offices, but also on electric and water utilities, having less people reporting for work. Taking away the time commuting to and from the office adds up to time available for actual work. This is appreciated more in areas where traffic can be very congested, with employees spending hours idle in their cars instead of doing tasks on the job. Telecommuters are more flexible in scheduling their ac tual work time during their most effective periods and around the other demands in their lives, rendering them to be more productive in the long run (Boyd, 1996). Working from home enables employees to spend more time with their families and schedule work around their duties such as attending parent meetings in their children’s schools or simply helping them out with their homework. Single parents and especially single mothers find it very hard to work in conventional working places due to unavailability of child care while they are at work. With telecommuting they find it much easier to give time to their families and work at the same time (Managing Telework: Options for Managing the Virtual Workforce, 1998). Because the possibility of merging work and home duties is most likely for telecommuters, self-discipline and organizational competencies need to take the upper hand. Telecommuting serves as insurance that work is continued in the comfort of one’s home. There can be several factors for work stoppage caused by external events – bad weather, medical emergencies, etc. Even if an employee relocates for personal reasons, he can still maintain employment by working where he is and submitting work online. When the employee is sick with minor illnesses, they can still do work from home without risking the health of their colleagues at work. Other occurrences such as

The Rapid Growth of The Body Shop Brand Essay Example | Topics and Well Written Essays - 1250 words

The Rapid Growth of The Body Shop Brand - Essay Example The Body Shop (TBS) brand was in a top position in the market in 1980s and also in the beginning of 1990s. During this period the company was having a high growth rate because of the popularity of the brand name. This question is divided into parts for analysis purpose. First part deals with the reasons for the rapid growth of the Body Shop Brand in the entire 1970s and early 1980s. The second part explains the reasons for the fall in the brand image during the last quarter of 1990s and early 2000s. Reasons for the growth: There were different reasons behind the brand attaining the top position in the industry as well as for achieving a high growth rate in the early years of its inception. These reasons explained below:- a. Environment friendliness and Social Commitment: The company followed a policy namely â€Å"care for environment† which ensured that the products and the day to day business activities of the company do not affect the environment in a negative manner. Furthe r the company was more socially committed. It participated in so many charitable activities as well as social welfare programs. It also sponsored several charity programs aimed to benefit the society. Roddick, the founder of The Body Shop brand, changed some corporate practices which were not friendly with the environment and made it environment friendly. The company established an alliance with Friends of Earth (FOE), which is a network of environmental organization worldwide. The company opposed the practice of testing of cosmetics in animals and campaigns were conducted against this practice. TBS practiced Community Trade, from which the society is benefited as the company bought ingredients of the products from the communities by giving reasonable price. All these resulted in the TBS brand becoming popular in the market and thereby achieving a higher growth rate.

The International Covenant On Civil And Political Rights Essay

The International Covenant On Civil And Political Rights - Essay Example With regard to the exercise of the cultural rights protected under article 27 [of the International Covenant on Civil and Political Rights], the Committee observes that culture manifests itself in many forms, including a particular way of life associated with the use of land resources, especially in the case of indigenous peoples. Discuss whether Article 27 of the International Covenant on Civil and Political Rights, to which New Zealand is a signatory, is effective in protecting the right of MAORI to enjoy Maori culture in New Zealand. Article 27 of the International Covenant on Civil and Political Rights gives to the Maori culture the right to engage in fishing activities and it reiterates its obligations to ensure that these rights are recognized. The Fisheries Settlement has achieved this to a large extent in as much as it gave them the right to revenue through quota together with Maori participation in the Sealords deal in what may be called as the modern day embodiment of Maori claims to the commercial fishery. In this way, Maori exercises effective control in a company through their shareholding and their representatives on the Board of Directors and has placed them in an unprecedented position to expand their presence in the market through the acquisition of further quota and fishing assets as well as through diversification in international catching processing and marketing. Its implementation is ensured and protected by the Treaty of Waitangi Fisheries Commission and its companies as well as individual tribes. Apart from this, the Fisheries settlement has come a long way in protecting non-commercial fishing i.e. for customary food gathering and a successful attempt has been made to recognize the special relationship between Maori and places of importance for customary food gathering. It may be noted that the right of minorities under Article 27 is not unlimited. They are subject to reasonable regulation provided these measures have a reasonable and ob jective justification and are consistent with the other provision of the Covenant and most importantly do not result in a denial of right. In Re Mahuika V New Zealand, it was held by one of the committee members that as far as in relation to Article 27 of the Covenant, an overall settlement of fisheries claims is found to be compatible to Article 27 provided that the conditions of effective consultation and securing the sustainability of culturally significant forms of Maori fishing are met. The Human Rights Committee was of the view that there is no breach of any article of the Covenant. In pursuance of the protection of the rights of the Maoris under Article 27 of the Covenant, the State has ensured that through a tedious and complex process of consultation with the various Maori groups it has attempted to secure broad Maori support to a nationwide settlement and regulation of fishing activities. It was only when there was substantial Maori support that the Settlement was enacted. It would not be out of place to mention that the consultation process gave special attention to the cultural and religious significance of fishing for the Maori inter alia to securing the possibility of Maori individuals and communities to engage themselves in non-commercial fishing activities. In this way, the State has taken necessary steps to ensure that the Fisheries Settlement and its enactment through legislation including the Quota Management System are in line with article 27.

Personality Description Paper Essay Example | Topics and Well Written Essays - 750 words

Personality Description Paper - Essay Example Personality, hence, has an impact on future success in the school and the workplace. This student is conscientious and analytical, but sensitive to the emotions and needs of others, and he works best with people who are creative, logical, and empathic, which has implications for being a transformational leader with contingency framework values. Some of the defining traits of this student are conscientiousness and analytical thinking. As a non-native speaker, it is important to work extra hard in completing assignments and doing school work. According to the temperament graph and feedback from others, the student is dedicated in self-improvement. He shows conscientiousness in enhancing the skills and knowledge needed to complete academic tasks. Furthermore, this student shows persistence in going beyond mediocrity. The Johari window information reveals a strong similarity between what people see and the hidden area of this student, especially regarding determination. This student believes that hard work pays, and his friends and classmates see that he is a hard working student and team member. The blind self shows that these friends think that sometimes, this student is underestimating his growth. They say that he is pushing himself too hard at times and being too critical of his achievements. These sentiments give an idea to this student that he must be a perfectionist to some extent because of high expectations of his own skills. The hidden area in the Johari window is believed to be extroversion. His classmates think that he is an extrovert because of his efforts in socializing with others and being sensitive to their emotions. In reality, this student sees himself as more of an introvert. The MBTI or Myers-Briggs Type Indicator supports this personal assessment, where this student finds solitude in thinking and working alone. Nevertheless, when needed to work in groups, he is willing to adapt and to become a leader or

None Essay Example | Topics and Well Written Essays - 250 words

None - Essay Example The Church, normally respected by the Americans, considers that when imitating evil spirits, people take over demonic disposition and destroy their appearance that was given to them by God. Such behavior contradicts Christian foundations; however the Americans never cease being true believers. Also there are usually acts of â€Å"petty vandalism† which the Church also does not approve of – children break glasses, burn trees, etc. Though in the 1920s the scouts called to introduce the practice of â€Å"trick or treat† instead, sometimes people still like to commit something they would not usually do in their normal life. Respectable businessmen are likely to turn over garbage bins, stewardesses (mainly on domestic flights) dress up like a witches or fairies, teachers have no less fun than their students. It is really an unusual tradition – to wear a mask and play a role quite opposite to what one is in the society. Both children and grown-ups enjoy themselves and have fun meeting November in the costumes of witches and vampires, throwing eggs, taking part in the â€Å"best costume† competitions, and eating pumpkin dishes. It reveals the Americans being in need of throwing away from time to time their â€Å"normal† social roles and taking up something quite uncommon. It would be incorrect to state that the Americans are the only nation incorporating both pagan and Christian traditions into their culture. However, in order to answer this question it is important to have a look at how the feast of Halloween reflects the peculiarities of American mind and culture on the whole, and at what it reveals about the Americans. There is no other feast that would be as dear to each American’s heart as Halloween is. To my mind, it is based upon the national tendency to enjoy trick effects and shows. It should also be mentioned that celebrating Halloween is a part of American death-denying culture pointed out by Mitford, as it teaches –

Open vs Closed Systems Essay Example for Free

Open vs Closed Systems Essay The state of Kansas defines OSS (Open Sourced Software) as software for which the source code is freely and publicly available, though the specific licensing agreements vary as to what one is allowed to do with that code. The book defines open source operating systems as those made available in source-code format rather than binary code. Closed source is exactly the opposite. Closed source is proprietary software that is only made available in binary code which is very difficult to reverse engineer. Open-source code is exactly what the programmer developed including all of the comments and notes. Open-source is most commonly confused with free software although the difference is very miniscule however strongly opposed. When all of these ideas are put together we can understand that as an end user with open sourced OS’ we have the ability to see all of the code and modify most of the OS if we have the necessary skills to do so. Whereas with closed source we can only see the code after it has been compiled into binary, or machine code, and only make changes that the programmers allow us to make within the OS. Open Sourced OS When we talk about open-sourced OS’ usually people think of UNIX or Linux. These are great examples of what open- source is. If a user wanted to download a version of Linux to install on his computer he could, and the open source would not cost him a thing. What he may end up paying for is support. Or if he is an experienced developer himself he can do what open-sourced software was originally intended to and make changes to the source himself. This is the biggest difference between open and closed source OS. With open source the individual has the freedom to make absolutely any change he deems necessary to the OS. Imagine being able to change the way Windows works. If you somehow figured out that the Windows OS would always crash when you have exactly 6 explorer windows open what would you do? Well if Windows was an open-source OS you could fix it and compile it. Then you could send the fixed version to the author so it could be updated and distributed to everyone else. That is the beauty of open-sourced OS’. Some can argue that because there are so many more eyes on the open-source systems that it makes them more secure. Closed Source OS Closed-source operating systems are the extreme opposite of open-source. The only form of closed source you can get is binary, which means you’ll have to do some very heavy hex reverse engineering in order to be able to actually understand the code. Closed source OS’ like Microsoft cost hundreds of dollars to buy, and if there’s issues with the latest version, you are forced to wait until Microsoft developers release an update that may fix your issue and yet break another one of your applications. Users are at the mercy of Microsoft at all times. You can make recommendations and complaints about Windows not behaving in a matter that suits your needs, but you can’t do very much more. GNU Public Licenses GNU (GNU Not UNIX) General Public licenses are licenses used for distributing free software. The idea of â€Å"copyright† was flipped around and introduced as â€Å"copyleft† by the FSF (Free Software Foundation). The purpose of â€Å"copylefting† was to do exactly the opposite of copyrighting. Instead of locking the software down and using the full extent of the law against anyone attempting to copy the copyrighted software; a GNU GPL forces the authors to allow anyone to copy and modify the code. The best example of how the GNU GPLs are used is the Linux operating system. Using GNUs UNIX compatible tools, Linus Torvalds created a UNIX like kernel and invited all developers around the world to modify his code and submit it back to him. Using the open source method Linus was able to complete the Linus OS much faster than anyone anticipated. Even though GNU had begun to be developed before Linux, the use of the internet and GNU GPLs allowed Linux to be completed before GNU was. Microsoft Licensing Due to the fact that Microsoft Windows was created to be a closed-source OS, users are forced to pay for a license before being able to download the binary file and install the software. Microsoft licensing copyrights the software and prevents anyone not appointed by Microsoft from viewing and modifying the source code. The advantage of Microsoft licenses is that when vulnerabilities or bugs are found, the end user doesn’t have to worry about figuring out how to fix it. Microsoft developers package the fixes and notify the end user’s OS when they are available for download. For an end user with no programming experience, the Microsoft Licensing scheme is a perfect scenario. Of course it costs a nice chunk of change, but for some people ignorance is bliss. The obvious disadvantage to this licensing structure is the complete opposite. The end users are completely powerless to fix known vulnerabilities and bugs. Microsoft has been able to blow past the competitors because of the availability of Volume licensing and software assurance policies. The biggest customer any software company can have is the government. When Microsoft started offering proprietary software that was easily deployable in any environment, the government and most other large companies were enticed into buying into the Microsoft Licensing closed source idea. Conclusion As a rule of thumb a person should never completely close any door even after seeing what’s inside and turning the other way. In one hand open-source OS’ can be extremely useful because they are easily modified and tailored to ones need. Along with the fact that there seems to always be someone interested in helping with code and the development of useful software. Most of the time, these programmers are not getting paid and are mostly just looking for a challenge. And on the other hand when money isn’t an issue and the knowledge of code is an issue, one can easily find themselves completely absorbed in the closed source way of life. Is either one better than the other? Maybe in some scenarios, but neither can nor should be considered a failure of societies way of thinking.

How To Reduce Drug Trafficking In The US Criminology Essay

How To Reduce Drug Trafficking In The US Criminology Essay I would like to say that this paper shows the point of view of total drug ban supporters, provides a history of drug policies pursued by the United States, and puts forward arguments against the softer (less restrictive) policies, commonly referred to as legalization of drugs, while as a main argument against the last is considered negative global experience with such permitted by law psychoactive substances such as alcohol and tobacco. Also the paper was written with an aim to show how funds that are used to fight drug trafficking would be better used if we would channel the funds to preventive and rehabilitation programs which should alleviate the need for illegal drugs in the United States. In the end of the paper we conclude that only strong public policy, intended to reduce harm through the prevention of drug abuse can achieve successes. Recent trends in the U.S. policy towards the consumption of psychoactive substances are discussed in the context of the history of drug policy in the country. Restrictive policy in this area serves as a deterrent consumption of such substances, and helps reduce social problems and costs associated with them. Legalization or decriminalization of drugs could mitigate some of the legal consequences of their use, but the growth of their use would lead to harmful consequences. Recent discussions on how to achieve success in solving problems related to drug use in the U.S. are concentrated around the two opposing models of politics. Proponents of one of these concepts, generally known as the prohibition, support the expansion of measures to ban them, as well as implementation of curative and preventive programs. Proponents of the opposite point of view, defined as the legalization, insisting on the abolition of restrictive policies on drugs and psychotropic substances, at the same time seeking methods to reduce the harmful consequences associated with their non-medical use. Knowledge of the history of drug policy in the United States would consider the subject of debate and the positions of its members in a more complete and objective context. Lets discuss historical context of the problem that will help us to plunge into the problem of this paper with more details. Musto (1987) demonstrated that the history of modern politics, aimed at the prohibition of drugs, has its roots in the XIX century, when the pharmaceutical industry has begun to develop and produce powerful and addictive substances. One of them was heroin, which in the United States first went on sale in 1898. These substances are sold as the most common items, along with a popular new drink Coca-Cola, which was part of the cocaine. At that time, doctors freely gave to their patients prescriptions for drugs that cause addiction. So, a fairly large group of people with dependence on psychoactive substances designated for medical purposes, or drug addicts on the prescription was formed. Drugs such as cocaine, originally used for medical prescriptions were legal. Drug use quickly spread among the population, gaining compulsive character, accompanied by illegal act ivities in order to maintain a non-medical use and continuing despite the obvious negative health and social consequences. Dupont and Voth (1995) stated that this period of chaotic sale and use of addictive substances ended in the first two decades of the XX century, when a new social contract embodied in the Act on the Control of Food and Drug Administration was adopted in 1906. This Act provided compulsory indication of drugs composition. Harrison Drug Act banned the drugs trade was adopted somewhat later in 1914. Volstead Act, together with the Eighteenth amendment was added to the Constitution of the United States in 1919, banned the selling of alcohol. In the United States, these laws were part of a broader movement for reform, which also called for granting voting rights to women. In accordance with this new social contract addictive drugs became inaccessible, except cases when they were appointed by doctors, and even then they were used exclusively for the treatment of diseases which will not include a painful addiction to these substances. In 1933, an alcohol was excluded from the list of strictly controlled or banned substances. In 1937, marijuana was added to the list of banned substances because of the sudden increase in the number of its users. This epidemic of drug abuse started in the last decade of the XIX century with morphine and heroin and ended in the first decade of the twentieth century with a sharp rise in cocaine consumption. According to Horgan (1993), it is necessary to mention that Social Contract that restricts the use of psychoactive substances, has brought considerable benefits to the country, nearly putting an end to the epidemic of drug abuse. During the first two-thirds of the twentieth century, the U.S. laws on the control of drug trafficking provides a model for similar legislation in many countries. In the period from 1920 to 1965 in the United States sharply reduced addictive consumption of psychoactive substances, which at the end of the XIX century were used freely and uncontrollably. Analyzing historical facts we could say that solid and steady success of this policy against psychoactive substance abuse lulled our vigilance. Social and political figures in the United States have forgotten the tragic consequences of the widespread use of psychoactive substances. An old epidemic of drug abuse in the country left in the memory of the little amount of the U.S. citizens to 1960. The majority of American population knows about drug abuse tragedy except by hearsay. Strict prohibition of psychoactive substances, except alcohol, was widely recognized until drugs were not included in the range of the rising youth culture as one of the key elements of a new lifestyle. Marijuana, hallucinogens and cocaine received widely used definition of minimally addictive or light drugs. Exactly they focused on itself calls for legalization, which justify unsubstantiated allegations, that these drugs are no worse than alcohol and tobacco. Nowadays serious problems of the past (and present) time related both to the deteriorating health problems and the development of psychoactive substances addiction, which are a consequence of cocaine and marijuana use are known. Extensive data research on the harmful effects of many drugs substances indicate how society has been misled in the 1960s. These effects include: development of drug addiction, traffic injuries, illnesses, suicides, and adverse effects of psychoactive substances on the human organism. In the next part of this paper it is necessary to return to the contemporary reality and I would like to begin this section with Barack Obamas words quoting taking from his appeal to the Congress of the United States. According to 2010 National Strategy we know that the 2010 National Drug Control Strategy was developed by ONDCP with input from Federal, State, and local partners. It provides a collaborative and balanced approach that emphasizes community-based prevention, integration of evidence-based treatment into the healthcare system, innovations in the criminal justice system, and international partnerships to disrupt drug trafficking organizations. Basing on this fact Barack Obama said that: I am committed to restoring balance in our efforts to combat the drug problems that plague our communities. Drug use endangers the health and safety of every American, depletes financial and human resources, and deadens the spirit of many of our communities. While I am proud of the new direc tion described here, a well-crafted strategy is only as successful as its implementation. To succeed, we will need to rely on the hard work, dedication, and perseverance of every concerned American. Discussing the National Drug Control Strategy we see that it emphasizes cooperative and balanced approach with emphasis on preventive work in the region, the integration of evidence-based treatment in general health care system, innovations in the criminal justice system to break the cycle of addiction and crime, and creating international partnerships to stop the activities of transnational organizations involved in drug trafficking. The 2010 National Drug Control Strategy was developed on the base of public discussions and necessary documents in this area. Director of National Drug Control Policy has met with police and doctors, representatives of organizations involved in treatment of drug addicts and people recovering from treatment, elected officials and officers from correctional establishments, scholars and groups of parents, religious leaders and others. The consultation process identified a number of important topics that link the drug problem with the main political priorities of the administration, including the economy, healthcare reform, youth development, public safety, military, veterans issues and international relations. Adopted drug control strategy allows funds that are used to fight drug trafficking implement in directions of preventive and rehabilitation programs which should alleviate the need for illegal drugs in the United States. In acknowledgement of these words I would like to show real facts taken from the FY 2011 Budget Summary and according to it we see: The Presidents Fiscal Year (FY) 2011 National Drug Control Budget requests $15.5 billion to reduce drug use and its consequences in the United States. This represents an increase of $521.1 million (3.5 percent) over the FY 2010 enacted level of $15.0 billion. These resources are categorized around five major functions: (1) Substance Abuse Prevention, (2) Substance Abuse Treatment, (3) Domestic Law Enforcement, (4) Interdiction, and (5) International Support. The 2010 National Drug Control Strategy sets the five-year goal of reducing drug use and its consequences. This Strategy is going to: reduce drug use among youth by 15 percent; reduce drug use among young adults by 10 percent; reduce the number of chronic drug users by 15 percent; reduce mortality drug use by 15 percent, and reduce the incidence of driving under the influence of drugs at 10 percent. In addition, the strategy outlines three significant problems with drug addiction, which the administration will focus this year: the abuse of prescription drugs, driving under the influence of drugs and drug prevention. Abuse of prescription drugs in the U.S. is the fastest-growing narcotic problem, which in recent years has resulted in significant overdose. Driving under the influence of drugs poses a threat to public safety, as evidenced by a recent survey on the roads, found that every sixth driver in the evenings at the weekend gave a positive test result for drugs in the organism. Prevention of drug abuse before its appearance is the best way to protect Americas youth from drugs. In addressing each of these problems, the strategy provides scientifically based, evidence-and a combined approach. Elements of the new strategy also includes a concerted effort on how to make it possible to restore to every American who is suffering from drug addiction through an expanding network of community centers to combat drug addiction and develop new drugs and treatments confirmed this dependence. Further support of work of law enforcement authorities, criminal justice system, suppression of drug trafficking and drug production in the country, work with partners on reduction of the global drug trade, and innovative public programs, such as the courts about the drugs, play a major role in reduction of drugs consumption and its consequences in America. Thus, taking into account above discussed information it is possible to conclude that the ongoing drug policy reduces the level of their consumption and makes its consequences less severe. On my opinion, the United States chose the right way for healthy nation and basing on fact that harm reduction is a pragmatic approach to minimize the harmful consequences for the individual and the community associated with drug use, it is understandable that countrys policy and adopted National Drug Control Strategy is also the right direction of development. For the end of the paper I would like to say that I strongly believe in the efficiency of discussed policy and it will lead our nation to success and prosperity.