Personal & Societal Values Essay

When dealing with ethical decisions, it is very important that nurses maintain a nonjudgmental view. Each nurse comes into the career with their own set of personal values and beliefs. These may not coincide with the values and beliefs of patients and their families. Nurses must be aware of the values that patients and families possess in order to reach ethical decisions. Values are a learned trait throughout each individual’s life. Early on, influences come about from family. Over time, one will have experiences and possess influences brought about from society. Values come about from cultural, ethnic and religious backgrounds. These are what affect our relationships with other people. Nurses need to be aware of their personal values. They must be aware of how they perceive life, health, illness, and death (Blais, 2011). This becomes increasingly important during end-of-life care and planning. Nurses need to maintain a biased attitude in order to have an effective working relationship with patients and their families. There will always be encounters with patients who hold different values and beliefs. When it comes to making ethical decisions, nurses need to have a reasonable thinking ability. Emotions and institutional policies should not be the basis of thought. A good decision is one that is made in the best interest of the patient and family. The patient’s well-being is most important. Autonomy of the patient is a factor also. The patient and family need to be allowed to be proactive in medical care decisions. Mutual respect must also be present. Being involved in ethical committees and nursing ethics groups can help nurses become more aware of their own personal values. Ethics committees help to balance reasonable treatment and guidance with the respect and dignity that comes as a right to all patients.

Morality of Management Earnings Essay

The term â€Å"Earnings Management† is a form of â€Å"number smoothing† used by a company’s management to manipulate or influence the company’s earnings to match a pre-determined dollar amount. This is done in an attempt to keep financials stable, as opposed to showing financial fluctuations. When a company appears to be stable it has a greater chance of attracting investors, which in turn demands higher share prices. When a company is able to have higher share prices, the more likely they are to draw new investors. Likewise, a company that has low share prices is often a reflection of a company that is not doing well financially (Investopedia, 2009, para 2). Often, companies perform abusive earnings management practices in an effort to â€Å"make the numbers† (Inevestopedia, 2009, para 4). In order to do this, management may be tempted to â€Å"make up† numbers as a means of drawing investors or to make their company appear financially stro nger than what it actually is. The methods used in earnings management can be varied, and may be done through manipulation of financial numbers or operating procedures (As cited by Gibson, 2013, p. 84). In a study conducted by the National Association of Accountants, a questionnaire was prepared which described 13 observed earnings management situations (As cited by Gibson, 2013, p. 83). Below are five listed generalizations that can be made by the study findings regarding short-term earnings management practices. 1. Respondents of the survey felt that earnings management practices utilizing accounting methods to be less acceptable than methods of operating procedure manipulation (As cited by Gibson, 2013, p. 84). Manipulation of operations can include something as simple as pushing shipping to the last day of the fiscal quarter or asking customers to take early delivery of goods (As cited by Gibson, 2013, p. 85). Another example is when companies make â€Å"Unusually  attractive terms to customers† or â€Å"Deferring necessary expenditures to a subsequent year† (Rosenzweig ; Fischer, 1994, para 5). According to survey responses, practitioners had fewer ethical dilemmas when using operational earnings management tactics compared to those involving accounting methods (Rosenzweig ; Fischer, 1994, para 7). 2. When it came to accounting, survey respondents felt that increasing earnings reports to be less acceptable than the decreasing of earnings reports (As quoted by Gibson, pg. 84). Managers appear to be more comfortable in reducing the overall company profit when reserves show elevated numbers (As cited by Gibson, p. 85). It would seem that management might assume that if their reserve numbers are high, then reducing them to show lessor profitability acceptable. If the money is genuinely there, then what is the harm in reducing the profit amount to meet a designated number? However, when it came to reporting profit increases, managers were hesitant in determining what earnings management methods would be ethical and which would not. 3. Generalization #3 is similar to generalization number two where ethics are concerned. Respondents felt that if earnings management tactics were kept small that it was more acceptable than if the effects were large (As cited by Gibson, p. 84). When manipulations of numbers or operating procedures are kept to smaller changes, managers seem to feel it more justifiable and acceptable. For instance, if management were asked to show an increase of sales by $12,000.00, such manipulations would be more ethical than if asked to increase sales by $120,000.00. Likewise, if production costs were delayed for advertising to meet a quarterly budget it would be more acceptable than if production costs for advertising were delayed to meet the end of year fiscal budget. This also ties in to generalization #4, the time period of the end effect. 4. Time periods play a large part in determining how ethical earnings management practices are. As described above, when asked to alter numbers or operating procedures in an effort to make quarterly forecasts, managers seemed to feel this practice to be more acceptable. When asked to alter numbers or operating procedures for annual reports, however, the line between ethical and questionable is blurred. 47% of respondents to the survey felt that earnings management practices that were made to meet an interim quarterly budget to be ethical, while only 41% felt that such manipulations in order to make an annual budget to be ethically sound (As  cited by Gibson, 2013, p. 85). 5. When asked whether it was acceptable to offer special extended credit terms to customers in an attempt to increase profits, only 43% of survey respondents felt the practice to be ethical. However, when asked if the same end result would be ethical if achieved through ordering overtime to ship as much product as possible at years-end, 74% of respondents felt this manipulation to be ethical (As cited by Gibson, 2013, p. 85). A staggering 80% of survey respondents felt that selling excess assets as a means of realizing a profit to be ethical, while only 16% felt it would be questionable (As cited by Gibson, 2013, p. 85). Short-term earnings management procedures, while questionable, are often legal. The alteration of financial information in an attempt to meet budgets or as a way to show profitability is often alluring and an â€Å"easy† way to draw investors. Managers who use earnings management tactics must take into consideration the impact such actions may have with key stakeholders (As cited by Gibson, 2013, p. 86). When numbers are skewed favorably, it gives stakeholders a false sense of security in their investments. Companies who engage in short-term earnings management practices often set themselves up for losses over time. When numbers are adjusted to make a quarterly or yearly dollar amount, chances are the following quarter will find the company in the negative. Such practices are rarely foolproof and care must be taken when making earnings management practice decisions. Focusing on long-term earnings management practices are ultimately more favorable, but in order to be effective management must remain committed to consistent operational procedures. Forecasting the product needs of customers and looking ahead are key strategies for keeping sales income at a consistent level. Waiting until the last minute to offer customers generous credit terms in an effort to boost end of year or quarterly sales is a short-term answer at best. Looking at the purchase history of customers and integrating theses sales number into future budgets should help alleviate the need to resort to last minute scrambling to make budget targets.

Dance Paper Essay Example | Topics and Well Written Essays - 250 words

Dance Paper - Essay Example Throughout the dance, couples participating ought to embrace each other, hence leaving no space between them. The dance floor ought to be large enough; this is to give room for numerous and vigorous movements involved especially if the dance is fast. Tango dance can involve more than one couple on the dance floor. If there are many couples participating in the dance, this calls for more space. Since body movements of the dance normally depend on the speed of music, this means that anybody can participate. Although most couples that participate in the dance are young and able bodied, older people too can take part in the dance (Paz & Valorie 65). One does not need to be able-bodied to dance this type of genre. Since, the only requirement is that one has a partner to embrace in addition to making small movements on the dance floor depending on the rhythm (â€Å"Tristesse1†). In my opinion, the dance is amusing based on how enjoyable is especially to married couples as well as those in relationships since through it there is mutual

Ice-Cream Making Case Study Example | Topics and Well Written Essays - 3250 words

Ice-Cream Making - Case Study Example First the components are chosen founded on the yearned formulation and the assessment of the recipe from the formulation and the components selected, and then the components are weighed and combined simultaneously to make what is renowned as the "ice-cream mix". Mixing needs fast agitation to incorporate powders, and often high pace blenders are utilised (Wirt, 49). The blend is then pasteurized. Pasteurization is the biological command issue in the scheme, conceived for the decimation of pathogenic bacteria. In supplement to this very significant function, pasteurization furthermore decreases the number of spoilage organisms for example psychrotrophs, and assists to hydrate some of the constituents (proteins, stabilizers). Both batch pasteurizers and relentless (HTST) procedures are utilised (Anderson, 33). Batch pasteurizers lead to more whey protein de-naturation, which some persons seem presents better body to the ice-cream. In batch pasteurization scheme, blending of the correct component allowances is finished in large jacketed vats equipped with some means of heating scheme, generally vapour or warm water. The merchandise is then warmed in the vat to not less than 69 C (155 F) and held for 30 minutes to persuade lawful obligations for pasteurization, essential for the decimation of pathogenic bacteria. ... Various time warmth blends could be used. The heat remedy should be critical sufficient to double-check decimation of pathogens and to decrease the bacterial enumerate to greatest of 100,000 per gram. Following pasteurization, the blend is homogenized via high stresses and then is passed over some kind of heat exchanger (plate or twice or triple tube) for the reason of chilling the blend to refrigerated temperatures (4 C). Batch containers are generally functioned in tandem in order that one is retaining while the other is being prepared. Automatic timers and valves double-check the correct retaining time has been met. Continuous pasteurization (see schematic design drawing for blend here) is generally presented in high warmth short time (HTST) heat exchanger following blending of components in large, insulated feed tank. Some preheating, to 30 to 40 C, is essential for solubilization of the components. The HTST scheme is equipped with heating scheme part, chilling part, as well as regeneration part. Cooling parts of ice-cream blend HTST presses are generally bigger than milk HTST presses. Due to the preheating of the blend, regeneration is lost as well as blend going into the chilling part is still rather warm. Homogenization The blend is furthermore homogenized which types the fat emulsion by shattering down or decreasing the dimensions of the fat globules discovered in milk or elite to less than 1 m. Two stage homogenization is generally favoured for ice-cream blend (Anderson, 34). Clumping or clustering of the fat is decreased thereby making narrower, more quickly whipped mix. Melt-down is furthermore improved. Homogenization presents the following purposes in ice-cream manufacture: Reduces dimensions of fat

Accounting Fraud, Earnings Manipulation, and Creative Accounting Research Paper

Accounting Fraud, Earnings Manipulation, and Creative Accounting - Research Paper Example financial reporting process, and also put into doubt the role played by management, regulators, auditors, and analysts in preventing accounting fraud. Businesses employ deceptive or fraudulent accounting practices such as creative accounting to match the expectations. Accounting fraud refers to an intentional and inappropriate falsification of a company’s accounting records such as the stating of sales revenue and/or expenses. Accounting fraud is geared towards making a company’s financial performance (operating profit) appear better than it is. The motivation for misrepresentation of accounting records hinges on the profit motive and sourcing a favorable financing and dodging debt obligations. Companies commit accounting fraud through activities such as failing to record prepaid expenses or other incidental assets, failing to show certain classifications of current assets and/ or liabilities, or collapsing both short-term and long-term debt into a single amount (Jones 3). Overstatement of sales revenue is one of the techniques employed in committing accounting fraud. Overstatement of sales arises from activities such as channel stuffing and delaying recording of products returned by clients. This is directed at avoiding recognition of those offsets against sales revenue within the current year. Other means by which businesses commit accounting fraud include under-recording expenses such as depreciation expense. In some instances, businesses fail to record the cost of goods sold expenses in order to make gross margins appear higher (Rezaee and Riley 82). Similarly, accounting fraud occurs when a business fails to state asset losses that ordinarily should be identified such as uncollectible accounts receivable or not writing down inventory under the lower of cost or market rule. In addition, a business may fail to record the full amount of liability for an expense. Accounting fraud may also feature abuse of corporate funds and overstating of the co rporate assets (Tirole 300). Creative Accounting Creative accounting (aggressive accounting) details accounting practices that are not necessarily considered illegal, but which are potentially misleading to investors and considered as unethical, regardless of the fact that the strategy is well within the letter of the law (Shah, Butt and Tariq 531). The resultant financial statements do not reflect the â€Å"true and fair† view of the company accounts. For instance, a firm may want to paint a perception that it is financially stronger whereas it has achieved little or no growth at all. Most businesses use creative accounting to enhance desire for stock issued so as to drive up the value of the shares and amass benefits to the business. Examples of creative accounting include off balance sheet financing, overoptimistic revenue recognition or application of overstated nonrecurring items. Motivations for Accounting Fraud The prominent cited motivations for accounting fraud encom pass the urge to meet internal or external earnings expectations. Thus, there is an attempt to conceal an entity’s deteriorating financial condition. In addition, financial fraud is motivated by the need to raise a company’s stock price as well as the urge to bolster a company’s financial performance owing to a pending equity or debt financing. Similarly, accountants engage in financial fraud so as to enhance management compensation based on financial results. The two most common techniques employed in fraudulently misstating the financial statements encompass improper revenue recognition and asset overstatements, primarily by overvaluing the present assets or capitalizing expenses. Other tricks employed in committing financial fraud include understatement of expenses and liabilities,

Paper media going Electronic Essay Example | Topics and Well Written Essays - 500 words

Paper media going Electronic - Essay Example References can be linked to abstracting services, from where abstracts or full texts of cited papers can be obtained, and similar publications can be retrieved based on the original article. Electronic versions of journals are available in advance of printed versions, and in addition users can browse the contents tables of forthcoming issues. Journal issues need not be shipped, thus avoiding delays due to mailing systems. Electronic documents can be accessed from anywhere at any time and by as many simultaneous users as needed (ESO.org, 1998). The customers who subscribe for a news papers or online journals can get access anywhere in the world, thus avoiding carrying it while traveling. It is also a good mode to save paper and is eco-friendly. These innovations have proven to be good for the advancement of scientific community in a more ecological way. While most people recognize the need to save energy and recycle waste it takes much more than just awareness to get them to change their habits on a large scale. It takes a combination of measures of many different kinds, such as technical waste disposal infrastructure, legislation and taxation to get massive behavioral c hanges underway (Bjà ¶rk, 2004). Businesses are currently using what is referred to as information technology strategy to provide them with a competitive edge. Robert Livingston states â€Å"that the use of the web can reduce processing time by one-third.† Electronic publishing would be an excellent timesaving, cost effective solution. Our future is heading in the direction of transforming from print to electronics. Electronics will aid in streamlining production with a limited staff. Therefore the company can expect a reduction in cost, and the ability to deliver multiple sources of information in less amount of time all over the world. Electronic publishing, newspapers and books would be an excellent strategic and business goal. There are a few

Prejudice Assignment Example | Topics and Well Written Essays - 250 words

Prejudice - Assignment Example of political prejudice was against the election of a particular political candidate in the Senate because he believed that that candidate was not suitable for office. He utilized any opportunity he got to campaign against a candidate. Those who listened to his stereotypical arguments against him would discriminate and support his opponent after being convinced of that particular candidates inability to lead. During that particular election, the candidates opponent made it into the senate. It was so relieving for the instigator. The candidate whom he had so much supported for office got into office and the developments of the area he represented in the senate stagnated. It was so disappointing for the people who elected him into office. Before even his term could end, people were already tired of his leadership and they tried to oust him from office but it was not possible. During the following election, the senator was unable to win even in the primary elections. The candidate who had lost in the past elections won in both the primaries and also in the general elections. When he took office as the senator of the area, he was able to change and improve the area to a noticeable point. The instigator was so ashamed of his attitude towards such a great leader and took more interest in his leadership. If only the instigator had not built the belief towards the good senator, probably, was elected into office in the previous term, then, the area would not have suffered bad

Understand the implications of finance as a resource within a business Assignment

Understand the implications of finance as a resource within a business - Assignment Example The estimation of cash requirements of a company and the various decisions related to the ways of generating cash is also sometimes referred to as the financial plan. Financial planning is thus important and helpful in determining the ways through which the companies can generate cash to make the various investment decisions possible for them. Cash budgeting, which is a part of financial planning, helps assess the ways in which available cash should be utilized y the company to achieve its financial objectives. Failure to arrange for adequate finance could lead to problems for the company, and it will not be able to carry on its business activities because of limited funds required for the purpose of implementing its various investment objectives. All these facts suggest that financial plan is critical to any business organization for its future growth and sustainability. Financial information of a company is generally presented through the financial statements prepared by its accountants. The users of financial information of an organisation can either be its external users or the internal users. The internal users or the users within the organisation are mainly the management accountants of the company, who use the financial information present in the financial statements of the company to make various business decisions (Sinha, 2009, p. 21). The managers of the company are also the internal users who are engaged in the activities related to planning and controlling the daily business operations of the organisation (Nikolai, Bazley and Jones, 2009, p. 7). The financial information is utilised by them to make decisions regarding internal operations to be conducted within the organisation. For example, the managers decide on the purchase of new equipment based on the financial information provided to them by the management accountants through the fin ancial

Week 12 Experiential Exercise Essay Example | Topics and Well Written Essays - 250 words

Week 12 Experiential Exercise - Essay Example Because of this the salesperson indicated that they spent a lot of time dealing one-on-one with clients still – something the salesperson indicated is growing rarer and rarer as internet booking becomes a more popular option. They say that their focus on high-end clientele means that they have some insulation against internet-based competition, who are better placed to compete on price than quality of service. Nonetheless, they indicated that developing online tools such as itineraries and so forth have been important elements in staying competitive in the digital age. Other than customer contact, the thing that took up most of this sales person’s average day was spent coordinating with partners that were both in house and out-of-house. They said its incredibly important to be able to understand exactly what you can and cannot offer, and what you can and cannot accommodate, so having personal and professional connections with other parts of the tourism industry is an essential part of a salesperson’s

America & Globalization Essay Example for Free

America Globalization Essay Abstract The purpose of this paper is to explore the idea that American corporations are working with international companies to help boost the economy. The paper focuses on the use of globalization as a primary tool towards accomplishing that goal. The paper also provides the reader with views from both supporters of globalization and opponents as well. The articles used for this paper give very interesting facts as well as views on both sides of the socio-economic table. In U.S Liberal Politics author Deborah White’s article â€Å"Pros and Cons of Free Trade† she discuses globalization in relation to free trade agreements and provides both pros and cons as well as a generalized definition of free trade. Meanwhile, Gary Hufbauer provides a more supporting article on Globalization supplied with studies and debates. As for Chris Isidore’s article, it focuses generally on the recessions from past to present and what trends are different and remain the same when it deals with the progression of the economy. Lastly, Wikipedia’s definition of †Globalization† lays out in detail the history, timeline, business applications, and etc. about the economic reference. In like manner, this paper examines the overall analysis of globalization and how it relates to boosting the economy. America Globalization One of the biggest topics today in America’s current events is the U.S. economy and the need for an economical boost. The U.S. declared the latest recession the biggest since the Great Depression. According to Chris Isidore (2010, p.1), â€Å"The Great Recession started in December 2007 and ended June 2009†. However, this information does nothing for the many Americans out of work, over-debt in their mortgage, and uncertain about their financial future. Nevertheless, seemingly, the American corporations have worked hard to try to find ways to help fellow Americans and boost the economy back to its median. One of the ways big corporations think will help is the use of Globalization. According to Wikipedia (2012, p.1) by definition, â€Å"Globalization refers to the increasingly global relationships of culture, people, and economic activity. It is generally used to refer to economic globalization: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import quotas†. Comparatively, the United Nations Economic and Social Commission have also written that globalization is a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, and services and labor† In contrast, there are just as many people opposed to this idea as those whom support it. Deborah White writes (p.1), â€Å"One angry complaint is that more than three million U.S. jobs with middle-class wages have been outsourced to foreign countries since 1994.† It seems that the biggest obstacle is convincing the middle class that globalization is in fact, a good idea for the economy. Those same opponents believe that free trade has caused more U.S. jobs losses than gains, especially for higher-wage jobs. They also feel that many free trade agreements are bad deals for the U.S. Nevertheless, American corporations in conjunction with government officials are both working with other international companies to help boost our economy. To begin with, American corporations like the idea of boosting the economy through the use of globalization. Henceforth, with treaties like NAFTA (North American Free Trade Agreement) and organizations like NATO (North Atlantic Treaty Organization) America has been at the forefront of the campaign for the removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor. Moreover, as White writes (2012, p.2), â€Å"The purpose of free trade agreements is to allow faster and more business between the two countries/areas, which should benefit both.† Statistics show that globalization does help boost the economy. Gary Clyde Hufbauer writes in his article, â€Å"The Peterson Institute calculates that the US economy is approximately $1 trillion richer each year owing to past globalization—the payoff both from technological innovation and from policy liberalization—and could gain another $500 billion annually from futur e liberalization†. These are the numbers that motivate American Corporations. In addition, globalization helps increase sales and profits for U.S. businesses, which ultimately boost the economy. What the middle class does not understand is that globalizations tactics such free trade help create more jobs within the middle class sector for the long term. White also adds (2012, p.2), â€Å"Removal of costly and delaying trade barriers, such as tariffs, quotas and conditions, inherently leads to easier and swifter trade of consumer goods. The result is an increased volume of U.S. sales.† Globalization also helps to develop and strengthen the economy of the poorest countries as well. Some of the biggest benefits of poor countries through tactics like free trade are creating more industrialized nations and increasing the purchase of their natural resources and/or labor services. Condescendingly, there are just as many opponents to globalization and free trade as there are supporters. Many of those that oppose consists of middle class Americans and the congressman they elect. The biggest problem is a fear of the unknown. Middle class Americans don’t want to wait for the â€Å"long-term†. They want to continue to have the same security of employment as they’ve always had, which is understandable. Nevertheless, they also feel free trade agreements cause a loss in higher paying jobs. This is the basis or platform for the argument of the â€Å"War on the Middle Class†. The argument of free trade and globalization, although provides a soaring boost in corporate profits, individual wages stagnate. This leaves no room for the middle-class to advance. As White explains (2012, p.2), While corporate profits soar, individual wages stagnate, held at least partly in check by the brave new fact of offshoring that millions of Americans jobs can be performed at a fraction of the cost in developing nations near and far. All things considered, the determination of whether globalization is good for the economy will continue to be a debatable issue amongst those of different socio-economic groups. Nevertheless, there is no doubt that globalization has its pros and cons. The ultimate goal and mindset of American Corporations behind implementing globalization is to work with international companies in an effort to boost the economy. Famous investor Warren Buffet once said, â€Å"Someone’s sitting in the shade today because someone planted a tree a long time ago.’ Whether that shade tree is globalization, who knows? The ultimate goal is creating jobs and getting the economy back on course. References Deborah White. (2012) US Liberal Politics Pros and Cons of Free Trade Agreement. Retrieved from http://usliberals.about.com/od/theeconomyjobs/i/FreeTradeAgmts.htm Chris Isidore. (September 2010) Economy Recession officially ended in June 2009. Retrieved from http://money.cnn.com/2010/09/20/news/economy/recession_over/index.htm Gary Hufbauer. (May 2008) Answering the Critics: Why Large American Gains from Globalization Are Plausible. Retrieved from http://www.iie.com/publications/papers/paper.cfm?ResearchID=929 Wikipedia. (March 2012) Globalization Retrieved from http://en.wikipedia.org/wiki/Globalization

Supply chains and distribution in India

Supply chains and distribution in India Abstract Indias FMCG industry has emerged as a distinct sector over the last few decades. Multinationals are seeking to pursue growth opportunities in emerging markets due to increased globalization and competition. India is one such emerging market that not only provides multinational companies with a large customer base but also welcomes western products. Having a presence in India means sourcing, moving and processing up to one billion or more units. In addition, the cost expectations and the larger size of the consumer market will have implications on supply chains. Excellent supply chain strategies for India will involve adopting efficient processes enabling products to smoothly change hands from the supplier to the consumer while adapting to the constraints of cost, infrastructure availability and market size of the economy. Other constraints associated with political, religious or cultural barriers may also need to be considered. The report is divided into two major parts. One deals with the distribution chains prevalent in the urban market while the second part delves into the intricacies of the rural distribution market. We follow the same format for both the parts starting with an introduction into the current trends found in the urban or rural market, then clearing our point with a case study and finally presenting what are the challenges faced by the companies. Supply Chain Management in Urban region- Introduction The FMCG sector is the fourth largest sector in the country and has been growing in folds in the past few decades. The sector has both organized and unorganized players and the number of players in both the segments are on increase, in addition to this there is also an increase in the number of products introduced every year. Since the sector is characterized by the fast movement of goods and services its dependence on effective supply chain is higher than that of any other sector so supply chain management is become one of the most vital functions. Supply chain management in urban sector typically refers to procurement of raw materials, processing them into finished products and distributing them in the urban region till its reaches the end consumer. Every company/ firm in the FMCG sector has its own supply chain models which are similar yet different from one another. Below are two examples of the supply chain models. The supply chain management in urban regions is more to do with choices for instance in logistic a firm can choose to transport the product via railways, roadways, airways or in some case even waterways. An effective supply chain will enable the firm to minimize the cost, maximize returns, match the supply to the demand and ultimately satisfy the customers. An urban supply chain in most cases has clear cut distinction between the inbound supply chain (pertaining to providing raw materials and components), in house supply chain (conversion process), outbound supply chain (distribution of good and services. The profile of the urban consumers plays a crucial role in determining the supply chain because at the end without the consumer there is no point in building up the supply chain model. Strategic decisions like number of outlet the firm would have to distribute its product, the kind of outlet, method to transport the product, places from were the raw material is procured, manufacturi ng method (automated, semi automated or manual) etc are taken keeping the consumer and the utility of the product to the consumer in mind. This is on account that the urban consumers are well informed and there are many competitors fighting for that consumer. The Supply Chain of Dominos Pizza (India) Dominos Pizza in India Dominos Pizza opened its first store in India in 1996. Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master Franchisee Rights for Dominos Pizza for India, Nepal, Sri Lanka and Bangladesh. Prior to Sep 24, 2009, the company was known as Dominos Pizza India Limited and underwent a name change, rest of the terms remaining the same. The promoters of the company are Mr. Shyam S Bhartia, Mr. Hari S Bhartia and Jubilant Enpro Private Ltd. Today Dominos has more than 300 stores in India with more than 9000 employees. According to the India Retail Report 2009, we were the largest Pizza chain in India and the fastest growing multinational fast food chain between 2006-2007 and 2008-2009 in terms of number of stores. Over the years Dominos Pizza has focused on:- Delivering great tasting pizzas Superior Quality Exceptional Customer service Think global and act local Value for money offerings Being a home delivery specialist capable of delivering pizzas within 30 minutes or else FREE Revenue in India 70% of the revenue comes from home deliveries 30% of the revenue comes from OTC sales 30 minute Guarantee Dominos has its unique proposition that they deliver pizza at a customers doorstep within 30 mins of placing the order or they would receive the pizza free. They have positioned themselves as a brand that delivers happiness home (Khushiyon ki Home Delivery) has an emotional benefit which they offer to their customers Dominos Supply Chain Integration Shown below is a high level flow of the supply chain followed by Dominos Pizza, India:- Raw Material Procurement Distribution Logistics Inventory Management Operational Strategy Production Process Quality Initiatives Customer Service R Raw Material Procurement Dominos has 4 commissaries or production kitchens-cum-warehouses (Regional Centralized Facilities) in India Delhi Caters to 54 outlets in NCR region including 33 outlets in Delhi City itself Bangalore Caters to 90+ outlets across south zone Kolkata Caters to 15+ outlets in Kolkata Mumbai Caters to 80+ outlets in Maharashtra including 51 in Mumbai and 15 in Pune Raw materials like Wheat is brought in from Jalandhar and sent to commissaries in refrigerated trucks. Pizza dough is prepared using a proprietary recipe in the commissaries. They are then made into dough balls and sent to retail outlets in refrigerated trucks. Vegetables like tomato, capsicum, baby corn, onion and spices are purchased locally. Cheese is brought in from Karnal, Haryana. Food which is frozen is sent in these trucks at -18 deg Celsius. It uses a hub and spoke model with commissaries as Hub and retail outlets as spokes. Logistics Wheat (Jalandar) Dough Vegetables (Local) Cheese (Karnal) Commissary Refrigerated Trucks Retail Outlets Inventory Management Major inventory consists of perishable items with a very small shelf life. Some of the items are tabulated below:- ITEM SHELF LIFE Dough Ball 3-4 days Seasoning and Toppings 4-5 days Onion, Capsicum , Tomato 5 days Cheese Blend 4-5 days Chicken Meat 2-3 days Cheese Dip 4-5 days Mexican Wrap Base 3-4 days Each store maintains approximately 4 days of inventory since most of the items have a shelf life of around 3-4 days. Inventory is refilled by trucks from the commissary every 4 days. There is a mini cold storage in every outlet. Inventory levels are monitored centrally by POS (point of sales) data using Intura Vision (POS management system) installed in every outlet. Intura Vision is the simplest and most reliable point-of-sale management system available for delivery and quick service restaurant operations. Intura Vision streamlines every aspect of your operation, including order taking, credit card processing, kitchen management, deliveries, inventory, and customer marketing, to make your business more efficient and profitable. There are two POS per outlet. Orders are received in telephonic form also there are in-store orders. Production Process The entire production process is streamlined into three stages:- Dough Table Here the pizza base is prepared. It is rolled out of the dough ball. There are three standard sizes Personal (8 inches), Medium (10 inches) and Large (14 inches). Personal, medium and large serves one, two and four persons respectively. Then cheese blend is applied on the base. The entire process of making a pizza base takes 1-2 minutes. Bake line In this stage toppings and seasonings are applied on the top of the prepared base. The choice of toppings depends upon the pizza ordered. Customers also have the facility to customise their own pizza by choosing their toppings from a variety of toppings available. Toppings can be veg, non-veg or both. Customer can also choose the seasoning they prefer depending upon the spices they would like to have in their pizza. The entire process of make line is 1 minute. Ven The pizza is then ready to be baked in oven. The temperature maintained is 470 Fahrenheit. Oven has a capacity to bake 6-7 pizzas in one slot. The pizza needs to be baked for about 5-6 minutes. The ovens used now-a-days are fully automatic along with a conveyer belt, so that the flow is continuous. In case of production in India, Dominos has a turnout of 1 pizza per minute. This meets the current demand requirement. The constraint here is the oven. They have overcome this by withdrawing the 30 min guarantee during festivals like New Year, Christmas, Diwali and rush-hours. Operations Strategy Dominos follows a hub and spoke distribution network wherein the 4 commissaries are the hubs and the retail outlets are the spokes. The raw material is replenished in the outlets from the hubs every 4 days or when it gets over, whichever is earlier. Vegetables are purchased locally (delayed differentiation). They have incorporated IST (interstore transfer) to cater to sudden spikes in the orders during special occasions wherein inventory falls short. In such cases material from nearby store is transferred to the critical store so that there is no halt in operations. They also have performance based costing for their employees where employees are given incentives depending upon the volume of sales which they achieve. Higher the sales better the incentives. Present status due to mismanaged Supply Chain in India: In India, about 60% of food value is mislaid in the supply chain from the farm to the final consumer. Consumers end up paying approximately 35 percent more than what they could be paying if the supply chain was refined, because of wastage as well as multiple margins in the present supply structure. Comparing with what returns farmers in India get (30%), in the USA the farmers can receive up to 70 percent of the final retail price and wastage levels are as low as 4 to 6 percent. Therefore we can appreciate the benefits that could be generated from implementing those practices and tapping those skills for the supply chain in India. The significance can be understood by the fact that the logistics  cost component in our country is as high as 7 10 percent against the global average of 4 5 percent of the total retail price. Therefore, the margins in the retail sector can be improved by 3 5 percent by just improving the supply chain management. Supply Chain Challenges Urban India Some key reasons of underperformance of supply chain management in urban India 1. Supply chain risk mitigation in an economic downturn: supplier financial risk, volatility in energy, commodity, labor rates and currency exchange, unpredictable economic recoveries. 2. Searching for working capital: FMCG companies will look to reduce inventory and lower operating or carrying costs. Buyers will look to extend payment terms Suppliers will drive to collect receivables more quickly, creating the need for a liquidity buffer such as supply chain financing 3. Shortening the supply chain by making proper use of transportation facility: Companies will need to plan a distribution system that takes care of the realities of domestic transportation infrastructure. Indias supply chains must contend with slow transit networks and inadequate infrastructure. For example, 70 % of Indias seaborne trade is handled by just 2 of the 12 major ports. The Railways is also constrained when it comes to freight movements. Historically, the countrys rail capacity was limited to passenger traffic, and people protested the use of rail for freight movement. Only of late has the government initiated efforts to promote rail shipments. Most commercial shipments in India make their journey aboard a truck. Hiring a carrier meant working with a small trucking company, as the country has no large, national transportation companies. A recent study of the transportation industry found that the majority of carriers had less than five trucks in their fleets. Scheduling deliveries and pickups also can be tricky. At present, most warehouses are located in the heart of Indian cities, and many municipalities prohibit large truck movements during daytime hours. It is possible to negotiate special exemptions in some places, but generally shippers must plan on nighttime movements. Another alternative is to unload large shipments at a cross dock outside the city and move orders to smaller vehicles for delivery. 4). More free-trade agreements and more scrutiny: The entry of foreign players in the retail segment will increase competition even further. More importantly multi-national companies might be having more money at their disposal. Thirdly they will also have access to latest technology and a ready highly efficient model to implement from.   5). Push-pull boundary: Increased competition, and fluctuating demand will make it difficult to identify the points at which the flow of goods switches from being pulled by consumers to being pushed by extractors.. 6). Maintenance of safety stock: Instead of having huge safety stocks at different places, centralized place will have to be used to have even more cash liquidity and lesser availability of godowns. 7) Judicious use of newer technologies and decision making tools: Use of newer technologies such as RFID (Radio Frequency Identification) continue to change the way SCM systems are designed and managed. Until recently, barcodes were the primary means of tracking packages. The advent of cheap, reliable RFID technologies have eliminated the need to physically scan packages in shipment, storage, etc, since packages with the embedded chips can be remotely scanned. 8) Creating a demand-driven supply chain To support a demand-driven supply chain, FMCG companies must deploy performance-oriented supply chain practices, such as continuous monitoring and alert notification. This will give them a clear idea of their total supply network to adapt to changes in demand and adjust based on real-time insight into global operations. A reliable demand plan provides the foundation for sales and ops planning (SOP) which helps FMCG companies better arrange daily operational; more effectively balance supply and demand; and make better decisions that impact both the top and bottom lines. 9) Other problems faced:. Inadequacies in infrastructure such as lack of high quality road networks, power shortages and insufficient storage spaces. The current rise in property prices and rentals may render a few retail business models unviable. The retail industry loses to the tune of US$120 to US$130 million every year in frauds, thefts and employee pilferage, shop lifting, vendor frauds or inaccurate supervision despite using standard and modern security features Multiple taxes at the federal and state level Rural Market Introduction The FMCG sector in the urban areas is becoming quite saturated (though it will continue to dominate in the next 8 10 years) while the penetration in the rural areas are only about 1%. The rural areas have and will continue to make up more than 50% of Indias total households and accounting for more than its current 66% contribution to total FMCG consumption. Rural India has a large consuming class with 41 per cent of Indias middle-class and 58 per cent of the total disposable income. Currently, nearly 34% of the off take of FMCG companies come form rural areas. Companies like HUL, ITC and Colgate have already established good distribution networks in these regions. Other companies would start catering to these regions in near future. Figure 1: Urban and Rural growth rates (Personal Care products) A huge segment of this market is currently flooded with obscure brands that are largely manufactured and distributed by small and medium enterprises. However, with the growing competition in the FMCG business, it has become difficult for SMEs to market their products sustainably. This is mainly due to the solidly established brand images of bigger players and the increasingly sophisticated demands of the urban customer. SMEs also lack the capital investment needed to compete with bigger players. However, with the growing economy, substantial business opportunities for FMCG producers have emerged in the Indian rural sector. The rural FMCG market is growing with a CAGR of 3-4%. In the case of products like soaps, talcum powder, cooking oil, tea, cigarettes and hair oil, the share of rural market crosses 50%. The capital expenditure of urban consumers on FMCG products is Rs. 49,500 crore, while that spent by rural population is over Rs.63,500 crore. This is indicates the growth rate and participation of rural FMCG markets in India. Despite the huge scope for FMCG products in the fast-emerging rural markets, some gray areas need to be worked out before SMEs can establish sustainable businesses: à ¢Ã¢â€š ¬Ã‚ ¢ Rural India does not represent a homogeneous market. The tastes and preferences of the consumers vary from district to district in the country. With changes in the language and dialect, advertising has to be tailored specifically for different target consumers. à ¢Ã¢â€š ¬Ã‚ ¢ Networks are not efficient to tackle the distribution demands. Problems exist in reaching the interiors of the country. Initial expenditures to develop distributor networks are immense, because in Roads and communication networks are not efficient to tackle the distribution demands. à ¢Ã¢â€š ¬Ã‚ ¢ As there is little consumer research regarding the rural markets, companies commit the folly of overestimating the awareness of product usage in the rural market. à ¢Ã¢â€š ¬Ã‚ ¢ The Indian consumer is traditionally price sensitive and more so in the rural parts. Multinational companies that modify portions and packaging to create a greater value proposition have succeeded in targeting the rural consumer. à ¢Ã¢â€š ¬Ã‚ ¢ The rural distributor cannot stock a large variety of products because of credit problems. Also as the retailer plays a vital role in the village in convincing the consumer about the usage of the product, it becomes imperative to provide sufficient information and infrastructure support to stock adequate inventory of goods. Major global brands have included villagers in their distribution channels, not only providing employment but also extending the reach in the rural markets. à ¢Ã¢â€š ¬Ã‚ ¢ While increased penetration of telecommunication has resulted in an increased awareness among villagers, it is still important to understand that a major chunk of rural community is not educated enough to comprehend the technicalities of the product/brand usage. Models for Rural distribution chains Approach 1 : Dedicated Rural Entrepreneur: The Individual is preferred to have a two wheeler and act as the spoke between the super stockiest and the villages in a hub and spoke model. He is expected to know the area well and has sufficient education to run a business. He is recruited to cover the nearby areas as well ( upto a 40KM range). He acts as the point of contact to receive and deliver the goods to the respective stores in his area of service. The analysis says this model works well for products that cost more than 75 per Kilo and the important part is that the company need not worry about the administration part of the operation. Approach 2: Distributor consolidation for urban and rural markets: Here we are to consolidate the urban distributor and the super and sub stockiest into a single group to serve the retail outlets. This entity is supposed to cover the town and the villages nearby. Approach 3: Consolidated Distribution with tele-order booking: Rural tele-density in India is expected to go up in the near future. This would help to remove the role of saleman an facilitate direct communication with the rural retail outlets to the super stockiest. However the drawback is that the company might loose on the relationship with the retail store in the absence of a sales person. Approach 4: Distributor choice based on unutilized reverse logistics potential Another non-traditional form of Collaboration for rural distribution could be to partner with other partner low-margin, high-reach players in rural markets. An example could be that of the dairy industry. The vehicles form the Dairy factories goes empty to the rural areas for collection and comes back with the milk. So it could be used for the transportation of goods from the factory site to the rural areas. Pepsico Distribution Chain Pepsico Indias distribution in rural areas thrives on two major factors :- Third party outsourcing Hub and spoke model in the rural areas. This mechanism is followed in the urban areas as well but in the rural regions the local entrepreneurs from the smaller spokes of the distribution channels. In all its operations the transportation is outsourced to the third parties. However there are some cases in which large distribution centres have their own fleet for transportation of finished products. The major two challenges faced by the company in the Indian context are the insufficient distribution in the rural sector and the inherent market risks. Distribution forms a major part of the companys concerns as it not only accounts to the revenues lost but also the potiential market share. The concern is primarily because of the Physical conditions of the Indian market and also the low purchasing power of the rural customer base this results in the setting p of the distribution centre cost being high. Coupled to that we have the insufficient sales offsetting the set up cost. Another concern is the taste of the rural customer who is more attracted to the local juice store or the fruit stall thereby increasing the competition from the unorganized sector. In case of distribution we have the issue of the size of retail store. The retail outlets in rural areas are more or less Kirana stores and there is near complete absence of the retail chains. So the amount of inventory that can be stocked in the small retail stores is very small. Apart from the distribution channel issues we have the risk of the market conditions. The small shops in the rural areas lack the refrigeration or storage capacities. The inventory is kept to meet the demands for the day and most of it is kept out in the open dues to lack of storage facilities. Thus many a time during the rainy season we can see the closure of these shops and sales of the products getting stalled. Pepsico has implemented the following strategies to overcome these concerns Utilizing the collective efforts of the small scale farmers, land holders and regional government Alliances with other multinationals Promoting entrepreneurship It started with a strategy similar to project Shakti used by the Hindustan Lever, but alliances were with local entrepreneurs and other multinationals. Its started by making the entrepreneur the spoke of its regional distributional network in the rural areas and then went along with Hindustan levers to share its distribution network. This helps the entrepreneur having a larger spectrum of products for distribution and hence a better prospect. The distribution chain of Pepsico India has a fragmented design which can be largely attributed to the lack of transportation infrastructure. And this resulted in the creation of collaborative and entrepreneurial partnership that thrives with symbiotic existence. An example could be that of a supplier who Is willing to lease land holding from other farmers Supply Chain Management in Rural Market- Challenges The following are a few of the challenges that a company faces while managing its supply chain in rural markets. Multiple Tier, Higher Cost and Administration Problem In the first place, the rural supply chain requires a larger number of tiers, compared to the urban one. The long distances to be covered from the manufacturing points to the scattered consuming households cause this situation. At the minimum, the rural supply chain need the village-level shopkeeper, the mandi-level distributor and the wholesale/stockiest in the town. And on top of them are the manufacturers own warehouse and branch office operations in selected centres. Such multiple tiers and scattered outfits push up the cost and make supply chain management a major problem. The scope of manufactures direct outlet such as showrooms or depots is quite limited in the rural market unlike in urban areas. It becomes expensive as well as unmanageable. The dependence of the firm on intermediaries is much greater in rural areas as direct outlets are ruled out. But controlling such a vast network of intermediaries is a difficult task. Control is mostly indirect. And because of these factor s the firm has to be more careful while selecting the supply chain members in rural areas. Non-availability of dealers Another problem is the availability of dealers. Many firms find that there are limited numbers of suitable dealers. Even if the firm is willing to start from scratch and try out rank newcomers, the choice of candidate is really limited. Poor Viability of Retail Outlet Retail sales outlets in the rural market suffer from poor viability. A familiar paradox in rural distribution is that the manufacturer incurs additional expenses on distribution, still the retail outlets find that the business in unremunerative. The scattered nature of market and the multiplicity of tiers in the supply chain use up the additional funds the manufacturer is prepared to part with. And no additional money comes to any of the groups. Moreover, the business volume is not enough to sustain the profitability of all the groups and the retail outlet suffers the most. Inadequate Bank Facilities Supply chain in rural markets is also handicapped due to lack of adequate banking and credit facilities. Rural outlets need banking support for three important purposes. To facilitate remittances to principals and to get fast replenishment of stocks To receive supplies through bank (retiring documents with the bank) To facilitate credit from bank As banking facilities are inadequate in rural areas, rural dealers are handicapped in all these aspects. It is as estimate that there is only one bank branch for every fifth village. Inadequate Credit Facilities Inadequacy of other institutional credit is another constraint. Rural outlets are unable to carry adequate stocks due to lack of credit facilities. They are unable to extend credit to their customers. Thus there is a vicious circle of lack of credit facilities leading to inadequate stocking and loss of business, finally resulting in poor viability of outlets. Lack of Transportation Facilities Many rural areas are not connected by proper transportation facilities. There are a very few villages with railways lines. Atleast 50 percent of the rural roads are poorly surfaced, and many totally destroyed or severely damaged by the monsoons and remain unserviceable. Also the use of bullock carts looks inevitable for many years into the future. In such a scenario distribution of goods via any supply chain is a huge challenge in itself. Lack of Proper Communication Facilities Communication with these villages is difficult and highly expensive. Moreover, 300,000 villages in the country have no access to telephone. This acts as a hindrance to proper supply chain management. Other Challenges Apart from the above there are various other challenges that firms face on day on day basis like. Low literacy rate Difference in languages and Dialects Prevalence of Seasonal Demand Rural policy Caliber of the rural community- they have great acumen but they need intensive training Supply Chain Management in Rural Market- How to tackle the Challenges In order to tackle the problem of supply chain management the following strategies can be implemented. Satellite Supply Chain In this system stockists are appointed in the major towns and feeder towns. They by and large discharge the following functions; (a) Financing (b) warehousing and (c) sub-distribution. Retailers in and around feeder towns get attached to these stockists. The manufacturer supply goods to the stockists either on consignment or on cash/credit basis. Further these stockists deliver the good to the retail market points or satellite markets. Over a period of time some retailers grow in stature and importance. If such retail points also coincide with centres of demand and transportation within the feeder town area, they are elevated to stockists points. If 15-20 retailers were operating as part of the original stockists network, 5 or 6 get elevated over a period of time to stockists. Fresh retail points get established simultaneously out of which some get attached to the original stockists while others to the new one. This process continues as long as the market and consumption level keep expanding and the supply also catches up via such a supply chain. Just like second-generation stockists, set of third generation stockists get established with the passage of time. At any point of time, a certain number or retail points hover round a particular stockist. Hence the system is called Satellite Supply chain distribution. The satellites have their own satellites too. The advantages of this system are Market penetration takes place without manufacturer having to expand his direct stock points. This system can bring in ample rewards in terms of increased sales and lesser distribution costs. Syndicate Supply Chain This solution is essentially for small companies: tie up with leading companies that already has a presence in rural market and distribute products through there supply chains. Relying on Private Village Shops Tie ups with the village private shops are the cheapest and most convenient channels in the rural markets. Supply Chain Management in Rural Market- Opportunities In the present scenario, companies operating in India will have only two options: either