A Look At Three Types Of Price Searchers Economics Essay

A Look At Three Types Of Price Searchers Economics Essay A monopoly is a firm producing a commodity for which there is no close substitute. There are usually some forms of barriers of entry. It is difficult to define a pure monopoly as close substitutes are difficult to define. For example, there are no close substitutes for cigarettes, but there are many substitutes for Marlboro. 1.1 Characteristics à ¢Ã¢â€š ¬Ã‚ ¢ Features (a) Only one seller. (b) Restricted entry by barriers. (c) Market information is not free and perfect. à ¢Ã¢â€š ¬Ã‚ ¢ Barriers to entry (a) Legal barriers create legal monopolies. (i) Public franchise: exclusive right to run a business, e.g. TVB. (ii) Government licence: exclusive right to entry into a business, e.g. taxi licence. (iii) Patent: exclusive right to use an invention, e.g. right to produce a drug. (b) Natural barriers create natural monopolies. (i) The average cost falls over a large volume of output before it rises. LRAC would be lower if an industry were under monopoly than if it was shared between two or more competitors. (ii) Control the supply of an essential raw material, e.g. most diamond mines in the world are controlled by De Beers Ltd. (iii) Economies of scale: The large fixed cost of production requires a large output to pull down the average cost, e.g. electricity generated by China Light Power Ltd. 1.2 Output And Price Decisions Definition A single-price monopoly is one that charges the same price for every unit of output it sells. The monopoly must decide how much to produce and what price to charge. It is a price-searcher. Definition A price searcher is a seller with sufficient market power to set its price by adjusting supply. Since there is only one firm in the industry, the demand curve of the firm is also the demand curve of the industry, and the seller faces a downward sloping demand curve. Table 1 illustrates the demand function of a petrol station. The marginal revenue is less than and falls faster than the price charged. The price is also equal to average revenue (AR). Table 1: Demand and marginal revenue Price (P, $/Litre) Quantity Demanded (Q) Total Revenue (TR = P x Q, $) Marginal Revenue (MR = ΆTR = ΆQ) ($/Extra Litre) 18 0 0 16 1 16 16 14 2 28 12 12 3 36 8 10 4 40 4 The monopoly maximises its profit by producing the level of output to MR = MC. Given the total cost as in Table 2, we can find that the best output level to maximise profit is at three litres, where both MC and MR are equal. The price charged is $12. Table 2: Demand and marginal cost Price (P, $/Litre) Quantity Demanded (Q) Total Revenue (TR=P x Q, $) Marginal revenue (MR = ΆTR / ΆQ, $/Extra Litre) Total Cost (TC, $) Marginal Cost ($/Extra Liter) 18 0 0 15 16 1 16 16 18 3 14 2 28 12 22 4 12 3 36 8 30 8 10 4 40 4 41 11 Graphically, the same conclusion can be derived in Figure 1. Figure 1 A monopolys output and price The price is determined by demand curve corresponding to the equilibrium quantity at which the MR equals to MC. The profit or loss is again determined by the ATC with reference to the quantity sold and the price charged. Owing to barriers to entry, economic profits will not be eliminated away in the long run. The only difference between short-run and long-run equilibrium is that in the long run, the firm will produce where MR = LRMC. 1.3 Single-price Monopoly Versus Perfect Competition A monopoly and perfect competition are two completely different market structures leading to different price and output decisions. We can summarise their differences as follows: Perfect Competition Monopoly à ¢Ã¢â€š ¬Ã‚ ¢ Price-taker à ¢Ã¢â€š ¬Ã‚ ¢ Monopoly influences its price à ¢Ã¢â€š ¬Ã‚ ¢ Produce where MR = MC à ¢Ã¢â€š ¬Ã‚ ¢ Produce where MR = MC à ¢Ã¢â€š ¬Ã‚ ¢ P = MR = MC à ¢Ã¢â€š ¬Ã‚ ¢ P > MC; P > MR à ¢Ã¢â€š ¬Ã‚ ¢ No barriers to entry à ¢Ã¢â€š ¬Ã‚ ¢ Restricts output, charges a higher price In terms of output, a monopoly is always accused of restricting output in order to push the price above the marginal cost. This is known as allocative inefficiency, leading to loss in social welfare. In Figure 2, PM and QM are the price and output decisions of a monopoly, which are less than the corresponding output and price decisions in perfect competition. We can see that the PC and PM for perfect competition are set at P = AR = MR = MC. Figure 2 Price and output decisions in a monopoly and in perfect competition Similarly, the output level is reduced from QC to QM, which will hurt both consumers and producers in terms of loss in consumer surplus and producer surplus. The sum of such loss is known as deadweight loss. Definition A deadweight loss is a loss to society that cannot be recovered. Figure 3 Inefficiency of a monopoly In Figure 3, some of the losses of consumers have been captured by the producer as monopoly gain. However, there is still deadweight loss as illustrated by the area of the triangle. In this respect, a monopoly reduces the potential gain to society in term of social welfare. 1.4 Shortcomings Of A Monopoly A monopoly has the following shortcomings: à ¢Ã¢â€š ¬Ã‚ ¢ Higher price and lower output than under perfect competition in both short run and long run. à ¢Ã¢â€š ¬Ã‚ ¢ Possibility of higher cost due to lack of competition. à ¢Ã¢â€š ¬Ã‚ ¢ Unequal distribution of income as income concentrates on monopolies. à ¢Ã¢â€š ¬Ã‚ ¢ Lack of incentive in invention and innovation. 1.5 Advantages Of A Monopoly A monopoly has the following advantages: à ¢Ã¢â€š ¬Ã‚ ¢ Economies of scale. à ¢Ã¢â€š ¬Ã‚ ¢ Possibility of lower cost curve due to more research and development and more incentives. à ¢Ã¢â€š ¬Ã‚ ¢ I nnovation and new products. 2. Monopolistic Competition The second type of price-searcher is monopolistic competition. Definition Monopolistic competition consists of features of perfect competition and monopoly. A firm in such a market structure is also referred to as open market price-searcher as it is not protected by barriers. 2.1 Characteristics à ¢Ã¢â€š ¬Ã‚ ¢ Large number of sellers (a) Each firm has a small market share. (b) This implies independence of firms. à ¢Ã¢â€š ¬Ã‚ ¢ Freedom of entry à ¢Ã¢â€š ¬Ã‚ ¢ Product differentiation Each firm has some market power over its loyal customer. à ¢Ã¢â€š ¬Ã‚ ¢ Each sellers product is a close substitute for many other sellers products (a) Products are made slightly different from others, i.e. differentiation. Definition In differentiation, products are made slightly different from others by brand, packaging, sales location and services. (b) Non-price competition is common. 2.2 Demand Curve Because of product differentiation, a firm can raise its price without losing all its customers. Therefore, the demand curve is downward sloping because a price rise results in the loss of some, but not all customers. The demand curve is relatively elastic because of substitutes from other firms. However, the actual elasticity depends on the degree of product differentiation. Generally, the less differentiated the product is, the more elastic the demand will be, and vice versa. 2.3 Price And Output Determination 2.3.1 Short run A firm in monopolistic competition faces a downward sloping demand curve. The marginal revenue (MR) curve of the firm in monopolistic competition is downward sloping. The profit is maximised where marginal revenue equals marginal cost. The profit-maximising output level is determined by the intersection of MR and MC curves. The profit-maximising price is determined by the demand curve. The firm can make a normal profit, an economic profit or a loss, depending on the difference between the price and the average total cost. Since each firm is small and has market power, no single firm can effectively influence what other firms do. If one firm changes its price, this action has no effect on the actions of the other firms. Figure 4 Monopolistic competition in the short run 2.3.2 Long run Economic profits in the short run will attract new entrants. When new firms enter, they share the market demand. The existing firms demand curve shifts inwards, representing less demand. This process continues until all economic profits are exhausted. When only normal profits remain, there is no incentive for new entrants. In Figure 5, the price and quantity are $140 and 60 units respectively. As the price is just equal to ATC, there is no economic profit. Figure 5 Monopolistic competition in the long run The long-run equilibrium will be a position where the downward sloping demand curve is tangent to the LRAC curve. However, the demand curve will never be tangent to the bottom of LRAC because it is downward sloping. The profit-maximising output is 60 units and price is $140. The firm in monopolistic competition has excess capacity as it does not produce at the optimum level of output where the LRAC is the lowest. Figure 6 Excess capacity in monopolistic competition 2.4 Shortcomings Monopolistic competition has the following disadvantages: à ¢Ã¢â€š ¬Ã‚ ¢ Owing to monopoly power, long-run equilibrium brings a higher price and lower output than perfect competition. à ¢Ã¢â€š ¬Ã‚ ¢ Owing to downward sloping demand curve, the firms demand curve will never be tangent to the bottom of the LRAC curve, implying that it will not produce at the least-cost point. Therefore, product differentiation in monopolistic competition creates excess capacity (i.e. creates inefficiency). à ¢Ã¢â€š ¬Ã‚ ¢ Less scope for economies of scale as share among many sellers. à ¢Ã¢â€š ¬Ã‚ ¢ Lack of economic profits in the long run for research and development. 2.5 Advantages Monopolistic competition has the following advantages: à ¢Ã¢â€š ¬Ã‚ ¢ Demand curve is highly elastic due to the large number of substitutes. à ¢Ã¢â€š ¬Ã‚ ¢ Diversity of products is available. (However, it has been argued that the cost of diversity is excess capacity which is a type of inefficiency.) à ¢Ã¢â€š ¬Ã‚ ¢ Greater freedom of entry when compared with monopoly. à ¢Ã¢â€š ¬Ã‚ ¢ Absence of economic profits in the long run helps to keep prices down for consumers. 3. Oligopoly Definition An oligopoly occurs when only a few firms share a large proportion of the industry. 3.1 Characteristics à ¢Ã¢â€š ¬Ã‚ ¢ Few number of sellers Competition among a few, e.g. two to 20. à ¢Ã¢â€š ¬Ã‚ ¢ Products may be identical or differentiated à ¢Ã¢â€š ¬Ã‚ ¢ Barriers to entry Entry may be relatively difficult or impossible (e.g. petroleum). à ¢Ã¢â€š ¬Ã‚ ¢ Interdependence of firms Oligopolists react to the pricing policy of rivals. The outcome is that there is no single generally accepted theory of oligopoly. Firms may react differently and unpredictably. A firms policy will depend on how it thinks its competitors will react to its move and the consequence depends on how its competitors really react. 3.2 Collusion And Competition The interdependence of firms in an oligopoly drives firms into one of the following two incompatible policies: à ¢Ã¢â€š ¬Ã‚ ¢ Collusive oligopoly: Oligopolists have formal or tacit agreement to limit competition among themselves to reduce uncertainty. For example, they may set output quotas, fix prices and limit product promotion. The typical collusive oligopoly is a cartel price leadership. à ¢Ã¢â€š ¬Ã‚ ¢ Non-collusive oligopoly: There is no formal agreement among oligopolists. Firms compete for bigger shares of industry profits. 3.3 Collusive Oligopoly A typical collusive oligopoly has these features: à ¢Ã¢â€š ¬Ã‚ ¢ Cartel Firms acts like a monopoly to maximise industry profits. (a) Cartel by non-price competition: Market price is set by joint profit maximisation and each firm observes that price. However, they compete for customers in the form of non-price competition. (b) Cartel by quotas: Another way is to set the price by joint profit maximisation. Each firm observes that price, but each firm will take its share or quota of the total quantity demanded at the controlled price. Thus, both cases require adherence to the price-setting by joint profit-maximisation among oligopolists. The only difference is whether the quantity demanded at the controlled price is competed among the firms in the form of non-price competition or is divided among themselves in the form of quotas. à ¢Ã¢â€š ¬Ã‚ ¢ Price leadership The demand curve of price leader represents the market share of the leader. The leader first maximises its profits at the point where leaders MC = MR. The corresponding price of leaders demand curve becomes the market price which every other firm has to follow. The leader supplies at its equilibrium quantity and the followers supply the rest representing the difference between market demand and leaders supply. 3.4 Kinked Demand Curve Model There are many theories to explain different kinds of phenomena in oligopoly. One such theory, the kinked demand curve, is put forward by Paul M. Sweezy to explain the price rigidity or sticky price in an oligopoly industry. Assumptions: à ¢Ã¢â€š ¬Ã‚ ¢ If a firm raises its price, others will not follow. Thus, the demand curve will be more elastic in this range. à ¢Ã¢â€š ¬Ã‚ ¢ If a firm cuts its price, so will the other firms. The demand curve in this range will be less elastic. These assumptions result in the kinked demand curve. In Figure 7, because the demand curve has kinked, the MR has broken as is illustrated by the gap between a and b on the graph. And the output and price would be the same even though the MC rises due to the same level by the equality of MR and MC. Thus, the price will be sticky when the cost increases within a certain range. Figure 7 The kinked demand curve 3.5 Shortcomings An oligopoly has the following disadvantages: à ¢Ã¢â€š ¬Ã‚ ¢ Shares all the same disadvantages of monopoly, as discussed earlier in this chapter. à ¢Ã¢â€š ¬Ã‚ ¢ Less scope for economies of scale than monopoly. à ¢Ã¢â€š ¬Ã‚ ¢ More extensive advertising than monopoly, e.g. non-price competition. 3.6 Advantages An oligopoly has the following advantages: à ¢Ã¢â€š ¬Ã‚ ¢ Economic profits: returns for research and development. à ¢Ã¢â€š ¬Ã‚ ¢ Incentive for innovation: for capturing larger market share. à ¢Ã¢â€š ¬Ã‚ ¢ Greater choice: non-price competition through product differentiation. 4. FACTOR MARKET For the production of goods and services, a firm has to acquire factors of production. The markets for factors of production are similar to those of the product market, as they can be categorised into perfect or imperfect markets. The demand for a factor of production is dependent upon the demand of goods that use the factor. Hence, the demand for factors of production is a derived demand. Definition Derived demand is demand for a productive resource that results from the demand for the goods and services produced by the resource. Figure 8 Illustration of the factor and product markets Factor payment is the income for the owner of the factor of production for use of the factor over a period of time. The factor income for labour, land, capital and entrepreneurship are wages, rent, interest and normal profit respectively. In a perfectly competitive factor market, the factor payment is determined by the forces of demand and supply. Figure 9 Demand and supply in the factor market 5. MARGINAL PRODUCTIVITY THEORY This theory explains that the demand for a factor depends on the marginal revenue product (MRP) of the factor. Definition Marginal revenue product (MRP) is the additional sales revenue resulting from employing an additional worker. Marginal product (MP) is the extra output produced by the additional worker. The MP curve is downward sloping because of the law of diminishing returns. MRP = MP (factor) x MR (goods) The MRP curve is downward sloping from left to right. It is identical in shape to the MP curve because MR (i.e. price of a good) is constant under perfect competition in the product market. Figure 10 Marginal product for labour and marginal revenue product 6. DEMAND FOR A FACTOR Marginal cost (MC) is the extra cost of employing an additional unit of factor of production. In a perfectly competitive factor market, a firms MC graph for a factor is horizontal because the firm is facing a perfectly elastic supply of the factor. Therefore, MC = Price of the factor (i.e. MC of labour = Wages) 6.1 Profit Maximisation The firm maximises profits when: Marginal cost of hiring an extra unit of labour = Marginal revenue from the labours output to the firm In equilibrium, MC (labour) / Wages (factor price) = MRP Hence, the firms demand curve for labour is identical to its MRP curve. Figure 11 Demand for labour The market demand curve for labour is the sum of quantities of labour demanded by all firms at each wage rate. Chapter Review à ¢Ã¢â€š ¬Ã‚ ¢ A monopoly is a price-searcher who is a seller with sufficient market power to set his price by adjusting supply. à ¢Ã¢â€š ¬Ã‚ ¢ The monopoly maximises its profit by producing the level of output to MR = MC. à ¢Ã¢â€š ¬Ã‚ ¢ A monopoly restricts output in order to push price above the marginal cost. Such allocative inefficiency leads to a loss in social welfare. à ¢Ã¢â€š ¬Ã‚ ¢ Because of product differentiation, a firm in monopolistic competition can raise its price without losing all its customers. à ¢Ã¢â€š ¬Ã‚ ¢ The firm in monopolistic competition has excess capacity as it does not produce at the optimum level of output where the LRAC is the lowest. à ¢Ã¢â€š ¬Ã‚ ¢ Due to the interdependence of firms, oligopolists react to the pricing policy of their rivals. à ¢Ã¢â€š ¬Ã‚ ¢ The kinked demand curve explains that the price will be sticky when the cost increases within a certain range. à ¢Ã¢â€š ¬Ã‚ ¢ A firm will maximise profits when the marginal cost of hiring an extra unit of labour = the marginal revenue from the labours output to the firm What You Need To Know à ¢Ã¢â€š ¬Ã‚ ¢ Monopoly: A firm producing a commodity for which there is no close substitute. à ¢Ã¢â€š ¬Ã‚ ¢ Deadweight loss: Loss to society that cannot be recovered. à ¢Ã¢â€š ¬Ã‚ ¢ Single-price monopoly: Monopoly that charges the same price for every unit of output it sells. à ¢Ã¢â€š ¬Ã‚ ¢ Monopolistic competition: This market structure consists of features of perfect competition and monopoly. à ¢Ã¢â€š ¬Ã‚ ¢ Differentiation: Products are made slightly different from others by brand, packaging, sales location and services. à ¢Ã¢â€š ¬Ã‚ ¢ Oligopoly: Only a few firms share a large proportion of the industry. à ¢Ã¢â€š ¬Ã‚ ¢ Derived demand: Demand for a productive resource that results from the demand for the goods and services produced by the resource. Work Them Out 1. Which of the following is NOT a characteristic of a monopoly? A The monopolist faces an inelastic demand for its product B There is only one seller in the market C Barriers of entry exist D The monopolist can influence the price 2. Which of the following statements is NOT true? A As an oligopolist responds to competitors actions, it can be considered a perfectly competitive firm. B Products in an oligopoly may be differentiated. C A cartel is like a monopolist with power to maximise industry profit. D Oligopoly is a market structure favourable to collusion. 3. The characteristic of a monopoly is A its large scale of production B the existence of barriers to entry C the huge initial investment D the necessity for a large market 4. A natural monopoly exists when A a franchise is granted to a firm B economies of scale are necessary C a firm can prevent the entry of competitors D a firm specialises in natural resources extraction 5. The monopolist can make economic profits because A entry is prevented B it charges a high product price C it has low promotion costs D it has a large market share 6. Economic profits earned by a monopolist are most likely due to A barriers of entry B an unexpected rise in the price of its product C good luck D the rate of return allowed by the government 7. Which of the following is NOT a feature of oligopoly? A Only a few firms dominate the industry. B There are no barriers to entry into the industry. C The product may be either homogeneous or differentiated. D Firms in an oligopoly face downward-sloping demand curves. 8. Which of the following is NOT a characteristic of monopolistic competition? A A single price exists for similar goods. B Only normal profit exists in the long run. C Products are differentiated. D Excess capacity exists in the long run. 9. Which of the following statements is NOT true? A There are numerous sellers in perfect competition. B Products are differentiated in monopolistic competition. C Firms in perfect competition maximise profits. D Information is perfect in monopolistic competition. 10. What is the likely market structure of coffee shops in Hong Kong? A Monopoly B Oligopoly C Monopolistic competition D Perfect competition SHORT QUESTIONS What factor(s) enable(s) a monopoly to earn economic profits in the long run? Why do perfectly competitive firms maximise their profits by producing so that their marginal cost equals the price, but monopolists maximise their profits by setting a price that is greater than marginal costs? What are the characteristics of a market that allows a monopolist to successfully price discriminate between groups? Explain how a firm in an oligopoly can differentiate its product. ESSAY QUESTIONS 1. Peters Toy Factory, a single-price monopoly, has the following demand schedule and total cost for luxury toys: Quantity (Toys) Price ($/Toy) Total Cost ($) 0 10 1 1 8 3 2 6 7 3 4 13 4 2 21 5 0 31 Calculate Peters total revenue schedule. Calculate Peters marginal revenue schedule. Calculate Peters profit-maximising levels of : (i) output (ii) price (iii) marginal cost (iv) marginal revenue (v) profit 2. Mr Ma started a recycling business in Hong Kong this month. He employs students to sort and collect bottles, paying 10 cents for each bottle collected. The students can sort the following number of bottles in an hour. Number Of Students Number Of Bottles 1 200 2 450 3 750 4 1,150 5 1,450 6 1,700 7 1,900 8 2,050 9 2,150 (a) Why does the students marginal product decline? (b) If all other firms pay the students $25 an hour to collect bottles, how many students will Mr Ma hire? If the fee for each collected bottle rises to 12.5 cents and the students wages increases to $37.50 an hour, (c) Calculate and show the changes to the students marginal revenue product in a table. (d) How many students will Mr Ma hire?

Strategic Human Resource Management in Cadbury Schweppes

Strategic Human Resource Management in Cadbury Schweppes 1.1 Introduction The strategic management of an organizations human resource has been recognized as one of the keys to business success. This particular strategy generally involved the optimization of the employees potentials mainly through training and performance assessment. This organizational strategy has been integrated in several businesses mainly to improve profitability, establish stronger customer relations as well as achieve considerable business expansion. Strategic human resource management (SHRM) has indeed been applied to fulfill various important business goals and plans. Hence, major companies including Cadbury Schweppes, have been developing and applying various means on how to strategically manage one of their essential assets. Cadbury Schweppes is one of the major global players in the food manufacturing sector, specifically confectionery and beverage products. About two hundred countries worldwide are enjoying the companys world-renowned quality products and brands. The company has been able to expand successfully in different foreign countries mainly through its dedication to quality production as well as effective management and marketing practices. In order to progress further, the company still aims to continue on producing quality brands and products, meeting the needs of its shareholders and operating towards optimum performance. Cadbury Schweppes knows that its achievement to operate globally is attributable to its workforce. Thus, the company has been employing different strategies in order to strategically improve its human resources towards continuous global success. This study then analyzes how the company applies strategic human resource management it its operations. In particular, focus was centered on the assessment of the companys strategies for maximizing the potentials, assessing the performance and enhancing the skills of its workforce. This research was conducted mainly to determine the relation of Cadbury Schweppes global success to its SHRM practices. 1.2 The Research Background Strategic human resource management (SHRM) was actually derived from the conventional HR concepts. Due to the growing pressures in business, particularly in the need to become more competitive and innovative, organizations and human resource departments see it necessary to reconsider existing HR practices. The application of the new concept involves the modification of HR policies, provision of training programs, development of performance measurement systems as well as the promotion of the employees overall well-being. In turn, the changes in the HR practice then allowed companies to overcome some of the major hurdles in the business sector. Cadbury Schweppes is among the major companies operating in the world. Aside from multiple branches in several foreign countries, the product lines of the company as well as its market have continuously grown over the years. Along with its global growth and success, the company has constantly upgraded its SHRM efforts as well. The researcher then aims to determine how these HR strategies had contributed to the companys global achievement. Investigating on this HR topic can stress the connection between workforce and business efficiency. As effective employees have long been considered as essential to good business operations, identifying how the strategic management of human resource can contribute to greater success will then be of benefit to many other companies. The researcher then attempted to achieve this objective by using some of Cadbury Schweppes HR staff for information. Using a survey as the research instrument, the data obtained were then analyzed to develop the findings. 1.3 Research Value Considering the increasing competitiveness in the business sector, organizations are in need of maximizing its resources in order to operate successfully. One of these important resources is the organizational workforce. By means of determining the different approaches related to strategic human resource management, workforce issues encountered by other companies may be resolved. In addition, companies intending to operate of expand on the global level may achieve this goal by assessing and improving their human resource strategies. This research may also be of value to employees as this could encourage business companies in general to give due value to their workforce so as to achieve better business outcomes. This investigative study could also contribute to the human resource sector particularly by increasing awareness on SHRM and the new approaches other companies could apply. Clients or consumers may also benefit from this study as the increased awareness on SHRM approaches can likely enhance both production and service provision of other companies. 1.4 Research Aims and Objectives This study aims to determine the role of strategic human resource management in the achievement of Cadbury Schweppes global growth and success. Below are the specific objectives of this research study: To determine the role if strategic human resource management in shaping the development processes of Cadbury Schweppes To analyze the performance assessment, training and potential-maximizing strategies of the global company To identify and analyze the human resource strategies of the company that allowed it to operate globally To relate various human resource management theories to the identified strategies of the company 1.5 The Research Outline The entire study is divided into five chapters. The first chapter presents the background of the study, the objectives, research problems and its significance. In the second chapter, literatures and published documents pertaining to strategic human resource management and the strategies applied by Cadbury Schweppes are discussed. The research methodology used for this study is discussed in chapter three. Specifically, this chapter focuses on the description of the participants, sampling technique and the research instruments utilized in the process. In chapter 4, the results of the survey are presented. Literatures supporting the findings of the study are also integrated in the discussion section of the chapter. Finally, the fifth chapter summarizes the findings of the research; significant conclusions as well as appropriate recommendations are also included in the final chapter. Chapter II: LITERATURE REVIEW 2.1 A Brief Historical Background of Cadbury Schweppes Cadbury Schweppes is actually a company established by a merger involving two of the greatest companies in UK. Jacob Schweppe was the one behind the perfection of the carbonated mineral water manufactured in Switzerland in 1783. On the other hand, John Cadbury established the now world-renowned chocolate manufacturing company in 1824. Over the years, both companies have operated successfully and became household brand names in the British region. It was not until 1969 when these two manufacturing giants decided to merge. Through organic program and acquisition, both companies were able to expand the business worldwide (Cadbury Schweppes 2006a). As two big companies joined into one, the new company developed and implemented several business strategies that led to its success. For instance, during the middle part of the 1980s, Cadbury Schweppes decided to center its attention on its international brand confectionery and beverages. Through this strategy, the company was able to strengthen its key brand names and even led to the purchase of some other major food brands such as Motts, Canada Dry, Trebor, Bassett, Dr. Pepper and Seven Up as well as Hawaiian Punch. The acquisition of other popular brands of the company continued up to the new millennium. In 2000 for example, Cadbury Schweppes acquired the Snapple and Hollywood and even took the second spot in the French soft drink sector when it acquired Orangina. In 2002, the company placed number two in chewing gum production by acquiring Dandy, a Danish chewing gum brand and became the number one company in confectionery at the global level. For $4.2 billion, the company also a nnounced its acquisition of yet another major brand called Adams (Cadbury Schweppes 2006a). 2.1.1 A Brief History and Importance of SHRM Strategic human resource management is considered as the extension of HRM. While HRM is focused on the theoretical concepts, SHRM is centered on how these theoretical foundations should be implemented. The concept of SHRM was actually brought about by the growing pressures of change. Organizations started to realize that changes in the conventional human resource activities must be carried out. This change would help much organization overcome new issues and challenges related to the human resource concept. In turn, human resource agencies and departments have been active in encouraging HR managers to develop means of applying strategy to the HR function (Niehaus 1995). This then gave rise to what is now called SHRM. Strategic Human Resource Management (SHRM) is a strategic approach that helps in managing employee relations. This HR concept emphasizes that leveraging peoples capabilities is critical to achieving sustainable competitive advantage. SHRM is actually applied by means of a distinctive set of integrated employment policies, programs and practices. Considering the increasing competition in the working sector, it is important that the employees are equipped with the abilities so as to assist their organization in overcoming such challenge (Bratton Gold 2003). SHRM gives emphasis on the integration of learning and organization. This means that the conception of learning must be considered by the organization as a purposeful business process (Ruona Roth 2000). Walton (1999) noted that SHRM is made of the introduction, elimination, modification and directional procedures and responsibilities where all employees are armed with the knowledge, skills and competencies necessary for them to pe rform various organizational tasks effectively. Through SHRM processes, employees are able to learn how they can improve their skills and enrich their knowledge, which are very useful in their overall work output. The efficiency of the employees will naturally lead to greater productivity and higher levels of customer satisfaction as well as loyalty. The application of SHRM is also essential for the personal and professional development of the employees, which in turn makes them more confident and committed in their work. The ultimate outcome of SHRM is the attainment of a strong and sustainable competitive advantage out of the companys workforce. For companies, generating competitive advantages out of their workforces is an important key in becoming globally competitive (McWilliams, Van Fleet Wright 2001). Schuler, Dowling and De Cieri (1993) noted that in order to successfully compete in the global market, human resources must be deployed effectively. 2.1.2 A Brief History of Human Resource Strategy of Cadbury Schweppes plc and its impact on the company The human resource strategy of Cadbury Schweppes originated from the company main operation purpose which is to work together to produce brands that others would love. In particular, the company developed a goal related to corporate social responsibility (CSR) in order to achieve this. This goal would direct the company to become socially responsible not only to their consumers but to the people working for it as well. As this goal covers the workforce sector, Cadbury Schweppes develops human resource strategies that are patterned CSR and ethical practices. In fact, one of the essential factors the company uses in its business operations is ethical behavior as well as the establishment of close relations with its stakeholders. The company generally believes that ethical business practices and respect for human rights are core foundation on how the company works and deals with people; the company also claims that good ethics works well with good business, resulting to long term succes s (The Times 100 2006). These core values then became the main influence for the companys human resource strategies. The HR strategies of the company are also influenced by the Quaker values which promote social reform, justice and equality. Thus, from the beginning of its operations, the company has always treated its employees with respect; the company also cares for the welfare of its staff. This explains why the company included sport facilities, parks and housing opportunities for its employees. It is also part of the companys human resource strategy to inculcate its ethical business culture to its employees by ensuring that all staff members understand the values and behavior the company expects from them; this has been achieved through the companys à ¢Ã¢â€š ¬Ã…“Our Business Principlesà ¢Ã¢â€š ¬? statement. The good practice of Cadbury Schweppes was even recognized in 2003 by the Management Today magazine where it was voted as one of the most admirable companies for fulfilling it environmental and community responsibility. During the same year, the company also placed second for the Food and Drink sector in the Business in the Community per cent club index for doing its social responsibilities (The Times 100 2006). 2.2 Human Resource Strategies of Cadbury Schweppes Over the years, the company has implemented several means to manage its human resources strategically. These strategies include those that maximize potentials, train employees, manage HR risks and assess performance. 2.2.1 Maximizing Potentials One of the key personnel of Cadbury Schweppes is its managers. Thus, in order to optimize their skills, the company applied various strategic programs. One of which is its Building Strategic Capabilities (BSC) program that was developed in 1998. This program course was applied in order to maximize the potentials of the companys managers. The program is made up of three important elements. One is that the program course involved the study of real strategic issues rather than hypothetical cases; this made the course content more applicable to actual business problems the managers would encounter. Another important element of this program course was that the process of strategic decision-making is studied from goal-setting to performance-monitoring. This element of the program aims to enhance the managers strategic language, in order for them to be equipped with the necessary processes and standards for effective strategy implementation. Finally, this program is also made up of an eleme nt, which exposes managers to practical or hands-on training. This element is conducted by letting the program participants interact with the members of the top management. For the past five years since this potential-maximizing program has been implemented, Cadbury Schweppes BSC program is still used as the main approach for executive development (Morley Hepplewhite 2004). The company has continuously developed programs and strategies that would optimize the skills of its staff. For example, in 2005, Cadbury Schweppes pursued its People Strategy through its Building Commercial Capabilities program. This strategy is a group learning and development activity which is implemented to ensure that the full potential of all employees are realized. The program aims to develop the participants marketing and sales expertise as well as their commercial decision-making skills; this is done by studying the standard Cadbury Schweppes marketing and selling technique. A total of 1,000 managers have participated in this program (Cadbury Schweppes 2006b). 2.2.2 Training Training is an important aspect of the companys SHRM strategy. Aside from ensuring that all employees have equal access to the companys training opportunities, Cadbury Schweppes also develops training programs that improve the competency of its workforce. For this year, the company developed Passion for People, a people management training program. This aims to teach the standard approach used for managing people; it is also the goal of this program to refresh such management approach among current employees (Cadbury Schweppes 2006b). Bob Stack, Cadbury Schweppes Chief Human Resources Officer, also explained that this program is also conducted for the purpose of improving the drive performance skills of the managers. Furthermore, it is the objective of this training program to instill among employees the values and behavior that make up the companys culture (Cadbury Schweppes 2006c). The company does not only provide training opportunities to the new employees but also offer regular updates of the existing staff members. This strategy is also applicable in cases when one of its employees becomes disabled. When this happens, Cadbury Schweppes sees to it that an alternative job is offered. Moreover, re-training efforts are also provided to the employee if necessary (Cadbury Schweppes 2006b). 2.2.3 Risk Management In order to support the SHRM strategies of Cadbury Schweppes, the company include appropriate HR policies particularly in the recruitment, selection and hiring of employees. Other common work issues are also covered by the companys HR regulations. Through these strategic policies, the company is able to maintain its standards and meet desired business outcomes. Patterned after its ethical business practices, the companys policies promote equal employment opportunities within its global businesses. Thus, Cadbury Schweppes is a company committed to selecting employees based on their abilities and potentials; it is part of the companys SHRM strategy to optimize the talents and experience the employees have and help them realize their other capabilities. The company believes that by shaping its HR policies with this ethical commitment, the business will not only employ people of talent but it will also help is establishing a good image in the communities where it operates (International Labor Organization 2002). In recruiting and selecting employees, it is Cadbury Schweppes aim to hire the best people for the position it offers and use methods that are free from bias and discrimination. For employee selection, the company ensures that necessary criteria including skills, knowledge, qualifications and experience of the applicants are clearly defined. Psychometric testing, assessment techniques ad other selection methods should also be non-discriminatory. It must be clearly described why the applicant was selected; for this, records for employee selection decisions are kept and stored. The advertisements of the company for the job positions it is offering should also be patterned after the equal employment aspect. In particular, the company must ensure that the advertisements present enough opportunities that most people can apply for. Moreover, these advertisements must reach even underrepresented communities and groups (International Labor Organization 2002). In order to improve its selectio n process, the company had also recently used an online system for its testing procedures. An electronic version of its psychometric tests has been installed so as to make this vital phase of selection faster and more efficient (Graduate Recruiter 2006). The risks involved in human resource management are also controlled by Cadbury Schweppes through relevant policies. For instance, the company follows a compensation structure which is not influenced by the employees color, race, ethnic origin, gender, marital status, religion, disability or age. The career development of the employees is also dependent solely on their merits and abilities. The access of the employees to training is also covered by the companys policies. Specifically, regardless of the employees race or origin, all employees of Cadbury Schweppes have equal access to training. Moreover, if certain employees are in need of educational or skill support, the company provides them with the necessary training; this would allow them to progress equally with other employees (International Labor Organization 2002). Fairness and equality are also part of the companys policies used for handling work issues, grievance matters and discipline. When such issues arise, the company ensures that the situations are assessed fairly and on the same basis as with similar cases. For bullying and harassment, the company also requires all its business units to develop clear guidelines that would help manage these human resource problems. These ensure that the employees are aware on how to report and address these matters. The development and use of these guidelines also help these issues from happening (International Labor Organization 2002). Aside from preventing HR-related risks through policies, the company also develops helpful programs that would promote the well-being of the employees. For example, the company conducts education programs for the employees health and nutrition; whole-family health management schemes are also implemented. In order to support these programs, the company also provides nutrition-oriented on-site cafeterias. Medical facilities are also made available in the company to meet the employees basic safety and health requirements. Aside from the employees physical well-being, their mental health is also cared for; this is done through the provision of counseling services. This aims to assist the employees in handling personal and work-related issues (Cadbury Schweppes 2006b). 2.2.4 Performance Assessment The SHRM application of the company also involves the assessment or measurement of the performance of its employees. Specifically, the company uses a two-part performance measurement system. The line manager is the one in charge of assessing the individual performance of the employee every half and end of the year. Clearly developed performance objectives are used for the evaluation. The line manager presides a formal meeting with the employee to be assessed; during this time, the set objectives set at the beginning of the year is documented by the line manager and signed by the employee (Cadbury Schweppes 2006d). The utilization of a performance measurement system at Cadbury Schweppes allowed the company to fulfill its goal of giving due value on its employees development, growth and performance management. Through this system, the company is able to recognize and reward the employees who have displayed exemplary performance and gave much contribution to the companys success. Having a designed system allowed the company to apply a consistent approach for appraising the employees performance, even for those working in other international offices. This approach is composed of tools that facilitate the employees career development and personal growth; Reward programs are also included. These programs generally help in motivating the employees to contribute more for attaining business success (Cadbury Schweppes 2006e). The managers of the company are also assessed using this system. Specifically, the company makes use behavioral factors that support its global leadership needs, which include accountability, adaptability, aggressiveness, forward-thinking capability, motivation, collaboration, teamwork and company values. A separate assessment process is also used by the company in order to evaluate other potentials of its managers; this enables the company to identify other roles its managers could perform. Due rewards are also provided to the individual based on the outcome of his or her performance appraisal (Cadbury Schweppes 2006d). Aside from the individual performance of the employees and managers, the overall performance of the business in relation to the people it serves is also assessed. For this, Cadbury Schweppes uses the climate survey tool that has the ability to identify the relation between overall business performance and employee engagement. This tool was initially used for the companys 10,000 global managers in 2004 and then applied too all employees the following year (Cadbury Schweppes 2006d). 2.3 Impact of the companys HR strategies The use of multiple strategies related to SHRM application has generally been beneficial for Cadbury Schweppes. The performance measurement system of the company for example, motivated the employees to work their best. This finding was further stressed when a study finding showed that almost 90% of the companys global employees are proud to be employed by Cadbury Schweppes. The survey conducted by the company also showed that the employees are highly committed and engaged to good work performance. The commitment of the employees represents the employees attachment to the company while engagement indicates the level of effort the employees are willing to give for the company; they key factors have been directly related to the surveys key areas. The findings clearly showed that Cadbury Schweppes succeeds globally through its employees engagement and commitment, which were brought about by its HR strategies. The outcome of the survey was further stressed by the employee turnover records of the company. As of 2003, the turnover rate was at low level of 2.5% at an annual basis; executive population has also dropped minimally from 180 to 165 in 2003 to 2004. The number of women working in the company on the other hand had increased from 11% in 2003 to 13% in 2004. Despite the promising outcome of the survey, the company sees it necessary to continuously improve the level of engagement employees have for good performance (Cadbury Schweppes 2006e). The performance appraisal system also made the employees more aware of what the company expects from them; this strategy also encouraged the employees to constantly seek ways on how their performance can be improved. The utilization of the performance system has also been helpful for the company as it becomes more knowledgeable with the operation areas that need improvements (Cadbury Schweppes 2006d). In general, having a performance appraisal system in the companys SHRM strategy helped it to become proactive in maintaining its good business practices and in developing ways on how to be a better company. The training and programs of the company has also been showing positive outcomes. Its communication-related programs for example, have been able to enhance the employees communication and engagement level. These skill developments in turn, enabled the company to accomplish several collective bargaining agreements. The SHRM efforts of the company also encourage share ownership among the employees. Specifically, the HR strategy of Cadbury Schweppes made its all-employee share plan arrangements accessible to its employees in UK, US, Spain, New Zealand, Mexico, Portugal, Netherlands, Germany, Australia, France and Ireland. This achievement helped in bringing the companys global employees together (Cadbury Schweppes 2006b). The use of ethical practices in the recruitment and selection of the companys employees has also been of benefit especially in ensuring the high standard performance of the staff. Improving the means of recruiting through information technology systems has also helped the company in short listing the best applicants. Since this development has improved the speed of the of the recruitment process, the company has more time to assess job-related exercises. The improved psychometric test allows Cadbury Schweppes to gain information that emphasize the candidates distinct abilities (Graduate Recruiter 2006). Chapter III: RESEARCH METHODOLOGY 3.1 Introduction Strategic human resource management has been recognized by various companies as an important factor for achieving business success. Cadbury Schweppes is among those major companies who have long been applying various human resource strategies to achieve good business outcomes. This research was then conducted with aim of identifying the role of SHRM in the achievement of global success using the case of Cadbury Schweppes in UK. In order to achieve this research aim, the researcher used the descriptive method of research. A total of 30 respondents from the companys human resource department were selected in random. The survey questionnaire, structure in Likert-format, served as the main research instrument for this study. In addition to primary information, the researcher also used books, journals and other literatures as sources of secondary data. By means of weighted mean computation and the Likert scale, the results of the survey were then analyzed; relevant literatures were used t o discuss these results. 3.2 Data Requirement In order to achieve the objectives of this research, the researcher would need data that would describe the role of SHRM to the global growth and success of Cadbury Schweppes. For this, the researcher would have to contact people who are knowledgeable of the HR strategies developed and implemented by the company; people who are aware of how these strategies had impacted Cadbury Schweppes would also be helpful in answering the needs of this study. Thus, the researcher saw it appropriate to use some of the human resource staff from the company. Considering their participation and experience with these HR strategies, they would be able to provide the data required of this study. 3.3 Research Design In this research, the descriptive method was utilized. The purpose of employing the descriptive method is to describe the nature of a condition, as it takes place during the time of the study and to explore the cause or causes of a particular condition. The researcher opted to use this kind of research considering the desire to acquire first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study. According to Creswell (1994), the descriptive method of research is to gather information about the present existing condition. This research method is advantageous for the researcher due to its flexibility; this method can use either qualitative or quantitative data or both, giving the researcher greater options in selecting the instrument for data-gathering. The aim of the research is to determine the role strategic human resource management in the global growth of Cadbury Schweppes; the descriptive method was then appropriate for this research since this method is used for gathering prevailing conditions. The research used human resource management employees as respondents from Cadbury Schweppes based in UK in order to gather relevant data; the descriptive method was then appropriate as this allowed the identification of the similarities and differences of the respondents answers. 3.3.1 Research Philosophy In order to carry out the research, the researcher ensured that a certain research philosophy framework is followed throughout the process. In particular, as this study will make use of human participants for data collection, ethical considerations were taken into account. This is in line with the researchers aim of carrying out the entire process ethically. Among the significant ethical issues that need attention include consent, confidentiality and data protection. Gaining Consent Securing permission and gaining the consent of the participants for this study is an important ethical consideration. In order to do so, the researcher relayed the aims of the research clearly to all participants. Each participant was asked to accomplish a consent form, stating in detail all the activities involved as well as the purpose of the study. The reasons why the human resource staff of the company was selected as participants were also stated so as to enable the selected participants to connect the aims of the research with that of the participant qualifications. In the consent form, the researcher also discussed in detail all the treatments or procedures to be done in the process. The possible risks that may be part of the research were also discussed with the participants in orde Strategic Human Resource Management in Cadbury Schweppes Strategic Human Resource Management in Cadbury Schweppes 1.1 Introduction The strategic management of an organizations human resource has been recognized as one of the keys to business success. This particular strategy generally involved the optimization of the employees potentials mainly through training and performance assessment. This organizational strategy has been integrated in several businesses mainly to improve profitability, establish stronger customer relations as well as achieve considerable business expansion. Strategic human resource management (SHRM) has indeed been applied to fulfill various important business goals and plans. Hence, major companies including Cadbury Schweppes, have been developing and applying various means on how to strategically manage one of their essential assets. Cadbury Schweppes is one of the major global players in the food manufacturing sector, specifically confectionery and beverage products. About two hundred countries worldwide are enjoying the companys world-renowned quality products and brands. The company has been able to expand successfully in different foreign countries mainly through its dedication to quality production as well as effective management and marketing practices. In order to progress further, the company still aims to continue on producing quality brands and products, meeting the needs of its shareholders and operating towards optimum performance. Cadbury Schweppes knows that its achievement to operate globally is attributable to its workforce. Thus, the company has been employing different strategies in order to strategically improve its human resources towards continuous global success. This study then analyzes how the company applies strategic human resource management it its operations. In particular, focus was centered on the assessment of the companys strategies for maximizing the potentials, assessing the performance and enhancing the skills of its workforce. This research was conducted mainly to determine the relation of Cadbury Schweppes global success to its SHRM practices. 1.2 The Research Background Strategic human resource management (SHRM) was actually derived from the conventional HR concepts. Due to the growing pressures in business, particularly in the need to become more competitive and innovative, organizations and human resource departments see it necessary to reconsider existing HR practices. The application of the new concept involves the modification of HR policies, provision of training programs, development of performance measurement systems as well as the promotion of the employees overall well-being. In turn, the changes in the HR practice then allowed companies to overcome some of the major hurdles in the business sector. Cadbury Schweppes is among the major companies operating in the world. Aside from multiple branches in several foreign countries, the product lines of the company as well as its market have continuously grown over the years. Along with its global growth and success, the company has constantly upgraded its SHRM efforts as well. The researcher then aims to determine how these HR strategies had contributed to the companys global achievement. Investigating on this HR topic can stress the connection between workforce and business efficiency. As effective employees have long been considered as essential to good business operations, identifying how the strategic management of human resource can contribute to greater success will then be of benefit to many other companies. The researcher then attempted to achieve this objective by using some of Cadbury Schweppes HR staff for information. Using a survey as the research instrument, the data obtained were then analyzed to develop the findings. 1.3 Research Value Considering the increasing competitiveness in the business sector, organizations are in need of maximizing its resources in order to operate successfully. One of these important resources is the organizational workforce. By means of determining the different approaches related to strategic human resource management, workforce issues encountered by other companies may be resolved. In addition, companies intending to operate of expand on the global level may achieve this goal by assessing and improving their human resource strategies. This research may also be of value to employees as this could encourage business companies in general to give due value to their workforce so as to achieve better business outcomes. This investigative study could also contribute to the human resource sector particularly by increasing awareness on SHRM and the new approaches other companies could apply. Clients or consumers may also benefit from this study as the increased awareness on SHRM approaches can likely enhance both production and service provision of other companies. 1.4 Research Aims and Objectives This study aims to determine the role of strategic human resource management in the achievement of Cadbury Schweppes global growth and success. Below are the specific objectives of this research study: To determine the role if strategic human resource management in shaping the development processes of Cadbury Schweppes To analyze the performance assessment, training and potential-maximizing strategies of the global company To identify and analyze the human resource strategies of the company that allowed it to operate globally To relate various human resource management theories to the identified strategies of the company 1.5 The Research Outline The entire study is divided into five chapters. The first chapter presents the background of the study, the objectives, research problems and its significance. In the second chapter, literatures and published documents pertaining to strategic human resource management and the strategies applied by Cadbury Schweppes are discussed. The research methodology used for this study is discussed in chapter three. Specifically, this chapter focuses on the description of the participants, sampling technique and the research instruments utilized in the process. In chapter 4, the results of the survey are presented. Literatures supporting the findings of the study are also integrated in the discussion section of the chapter. Finally, the fifth chapter summarizes the findings of the research; significant conclusions as well as appropriate recommendations are also included in the final chapter. Chapter II: LITERATURE REVIEW 2.1 A Brief Historical Background of Cadbury Schweppes Cadbury Schweppes is actually a company established by a merger involving two of the greatest companies in UK. Jacob Schweppe was the one behind the perfection of the carbonated mineral water manufactured in Switzerland in 1783. On the other hand, John Cadbury established the now world-renowned chocolate manufacturing company in 1824. Over the years, both companies have operated successfully and became household brand names in the British region. It was not until 1969 when these two manufacturing giants decided to merge. Through organic program and acquisition, both companies were able to expand the business worldwide (Cadbury Schweppes 2006a). As two big companies joined into one, the new company developed and implemented several business strategies that led to its success. For instance, during the middle part of the 1980s, Cadbury Schweppes decided to center its attention on its international brand confectionery and beverages. Through this strategy, the company was able to strengthen its key brand names and even led to the purchase of some other major food brands such as Motts, Canada Dry, Trebor, Bassett, Dr. Pepper and Seven Up as well as Hawaiian Punch. The acquisition of other popular brands of the company continued up to the new millennium. In 2000 for example, Cadbury Schweppes acquired the Snapple and Hollywood and even took the second spot in the French soft drink sector when it acquired Orangina. In 2002, the company placed number two in chewing gum production by acquiring Dandy, a Danish chewing gum brand and became the number one company in confectionery at the global level. For $4.2 billion, the company also a nnounced its acquisition of yet another major brand called Adams (Cadbury Schweppes 2006a). 2.1.1 A Brief History and Importance of SHRM Strategic human resource management is considered as the extension of HRM. While HRM is focused on the theoretical concepts, SHRM is centered on how these theoretical foundations should be implemented. The concept of SHRM was actually brought about by the growing pressures of change. Organizations started to realize that changes in the conventional human resource activities must be carried out. This change would help much organization overcome new issues and challenges related to the human resource concept. In turn, human resource agencies and departments have been active in encouraging HR managers to develop means of applying strategy to the HR function (Niehaus 1995). This then gave rise to what is now called SHRM. Strategic Human Resource Management (SHRM) is a strategic approach that helps in managing employee relations. This HR concept emphasizes that leveraging peoples capabilities is critical to achieving sustainable competitive advantage. SHRM is actually applied by means of a distinctive set of integrated employment policies, programs and practices. Considering the increasing competition in the working sector, it is important that the employees are equipped with the abilities so as to assist their organization in overcoming such challenge (Bratton Gold 2003). SHRM gives emphasis on the integration of learning and organization. This means that the conception of learning must be considered by the organization as a purposeful business process (Ruona Roth 2000). Walton (1999) noted that SHRM is made of the introduction, elimination, modification and directional procedures and responsibilities where all employees are armed with the knowledge, skills and competencies necessary for them to pe rform various organizational tasks effectively. Through SHRM processes, employees are able to learn how they can improve their skills and enrich their knowledge, which are very useful in their overall work output. The efficiency of the employees will naturally lead to greater productivity and higher levels of customer satisfaction as well as loyalty. The application of SHRM is also essential for the personal and professional development of the employees, which in turn makes them more confident and committed in their work. The ultimate outcome of SHRM is the attainment of a strong and sustainable competitive advantage out of the companys workforce. For companies, generating competitive advantages out of their workforces is an important key in becoming globally competitive (McWilliams, Van Fleet Wright 2001). Schuler, Dowling and De Cieri (1993) noted that in order to successfully compete in the global market, human resources must be deployed effectively. 2.1.2 A Brief History of Human Resource Strategy of Cadbury Schweppes plc and its impact on the company The human resource strategy of Cadbury Schweppes originated from the company main operation purpose which is to work together to produce brands that others would love. In particular, the company developed a goal related to corporate social responsibility (CSR) in order to achieve this. This goal would direct the company to become socially responsible not only to their consumers but to the people working for it as well. As this goal covers the workforce sector, Cadbury Schweppes develops human resource strategies that are patterned CSR and ethical practices. In fact, one of the essential factors the company uses in its business operations is ethical behavior as well as the establishment of close relations with its stakeholders. The company generally believes that ethical business practices and respect for human rights are core foundation on how the company works and deals with people; the company also claims that good ethics works well with good business, resulting to long term succes s (The Times 100 2006). These core values then became the main influence for the companys human resource strategies. The HR strategies of the company are also influenced by the Quaker values which promote social reform, justice and equality. Thus, from the beginning of its operations, the company has always treated its employees with respect; the company also cares for the welfare of its staff. This explains why the company included sport facilities, parks and housing opportunities for its employees. It is also part of the companys human resource strategy to inculcate its ethical business culture to its employees by ensuring that all staff members understand the values and behavior the company expects from them; this has been achieved through the companys à ¢Ã¢â€š ¬Ã…“Our Business Principlesà ¢Ã¢â€š ¬? statement. The good practice of Cadbury Schweppes was even recognized in 2003 by the Management Today magazine where it was voted as one of the most admirable companies for fulfilling it environmental and community responsibility. During the same year, the company also placed second for the Food and Drink sector in the Business in the Community per cent club index for doing its social responsibilities (The Times 100 2006). 2.2 Human Resource Strategies of Cadbury Schweppes Over the years, the company has implemented several means to manage its human resources strategically. These strategies include those that maximize potentials, train employees, manage HR risks and assess performance. 2.2.1 Maximizing Potentials One of the key personnel of Cadbury Schweppes is its managers. Thus, in order to optimize their skills, the company applied various strategic programs. One of which is its Building Strategic Capabilities (BSC) program that was developed in 1998. This program course was applied in order to maximize the potentials of the companys managers. The program is made up of three important elements. One is that the program course involved the study of real strategic issues rather than hypothetical cases; this made the course content more applicable to actual business problems the managers would encounter. Another important element of this program course was that the process of strategic decision-making is studied from goal-setting to performance-monitoring. This element of the program aims to enhance the managers strategic language, in order for them to be equipped with the necessary processes and standards for effective strategy implementation. Finally, this program is also made up of an eleme nt, which exposes managers to practical or hands-on training. This element is conducted by letting the program participants interact with the members of the top management. For the past five years since this potential-maximizing program has been implemented, Cadbury Schweppes BSC program is still used as the main approach for executive development (Morley Hepplewhite 2004). The company has continuously developed programs and strategies that would optimize the skills of its staff. For example, in 2005, Cadbury Schweppes pursued its People Strategy through its Building Commercial Capabilities program. This strategy is a group learning and development activity which is implemented to ensure that the full potential of all employees are realized. The program aims to develop the participants marketing and sales expertise as well as their commercial decision-making skills; this is done by studying the standard Cadbury Schweppes marketing and selling technique. A total of 1,000 managers have participated in this program (Cadbury Schweppes 2006b). 2.2.2 Training Training is an important aspect of the companys SHRM strategy. Aside from ensuring that all employees have equal access to the companys training opportunities, Cadbury Schweppes also develops training programs that improve the competency of its workforce. For this year, the company developed Passion for People, a people management training program. This aims to teach the standard approach used for managing people; it is also the goal of this program to refresh such management approach among current employees (Cadbury Schweppes 2006b). Bob Stack, Cadbury Schweppes Chief Human Resources Officer, also explained that this program is also conducted for the purpose of improving the drive performance skills of the managers. Furthermore, it is the objective of this training program to instill among employees the values and behavior that make up the companys culture (Cadbury Schweppes 2006c). The company does not only provide training opportunities to the new employees but also offer regular updates of the existing staff members. This strategy is also applicable in cases when one of its employees becomes disabled. When this happens, Cadbury Schweppes sees to it that an alternative job is offered. Moreover, re-training efforts are also provided to the employee if necessary (Cadbury Schweppes 2006b). 2.2.3 Risk Management In order to support the SHRM strategies of Cadbury Schweppes, the company include appropriate HR policies particularly in the recruitment, selection and hiring of employees. Other common work issues are also covered by the companys HR regulations. Through these strategic policies, the company is able to maintain its standards and meet desired business outcomes. Patterned after its ethical business practices, the companys policies promote equal employment opportunities within its global businesses. Thus, Cadbury Schweppes is a company committed to selecting employees based on their abilities and potentials; it is part of the companys SHRM strategy to optimize the talents and experience the employees have and help them realize their other capabilities. The company believes that by shaping its HR policies with this ethical commitment, the business will not only employ people of talent but it will also help is establishing a good image in the communities where it operates (International Labor Organization 2002). In recruiting and selecting employees, it is Cadbury Schweppes aim to hire the best people for the position it offers and use methods that are free from bias and discrimination. For employee selection, the company ensures that necessary criteria including skills, knowledge, qualifications and experience of the applicants are clearly defined. Psychometric testing, assessment techniques ad other selection methods should also be non-discriminatory. It must be clearly described why the applicant was selected; for this, records for employee selection decisions are kept and stored. The advertisements of the company for the job positions it is offering should also be patterned after the equal employment aspect. In particular, the company must ensure that the advertisements present enough opportunities that most people can apply for. Moreover, these advertisements must reach even underrepresented communities and groups (International Labor Organization 2002). In order to improve its selectio n process, the company had also recently used an online system for its testing procedures. An electronic version of its psychometric tests has been installed so as to make this vital phase of selection faster and more efficient (Graduate Recruiter 2006). The risks involved in human resource management are also controlled by Cadbury Schweppes through relevant policies. For instance, the company follows a compensation structure which is not influenced by the employees color, race, ethnic origin, gender, marital status, religion, disability or age. The career development of the employees is also dependent solely on their merits and abilities. The access of the employees to training is also covered by the companys policies. Specifically, regardless of the employees race or origin, all employees of Cadbury Schweppes have equal access to training. Moreover, if certain employees are in need of educational or skill support, the company provides them with the necessary training; this would allow them to progress equally with other employees (International Labor Organization 2002). Fairness and equality are also part of the companys policies used for handling work issues, grievance matters and discipline. When such issues arise, the company ensures that the situations are assessed fairly and on the same basis as with similar cases. For bullying and harassment, the company also requires all its business units to develop clear guidelines that would help manage these human resource problems. These ensure that the employees are aware on how to report and address these matters. The development and use of these guidelines also help these issues from happening (International Labor Organization 2002). Aside from preventing HR-related risks through policies, the company also develops helpful programs that would promote the well-being of the employees. For example, the company conducts education programs for the employees health and nutrition; whole-family health management schemes are also implemented. In order to support these programs, the company also provides nutrition-oriented on-site cafeterias. Medical facilities are also made available in the company to meet the employees basic safety and health requirements. Aside from the employees physical well-being, their mental health is also cared for; this is done through the provision of counseling services. This aims to assist the employees in handling personal and work-related issues (Cadbury Schweppes 2006b). 2.2.4 Performance Assessment The SHRM application of the company also involves the assessment or measurement of the performance of its employees. Specifically, the company uses a two-part performance measurement system. The line manager is the one in charge of assessing the individual performance of the employee every half and end of the year. Clearly developed performance objectives are used for the evaluation. The line manager presides a formal meeting with the employee to be assessed; during this time, the set objectives set at the beginning of the year is documented by the line manager and signed by the employee (Cadbury Schweppes 2006d). The utilization of a performance measurement system at Cadbury Schweppes allowed the company to fulfill its goal of giving due value on its employees development, growth and performance management. Through this system, the company is able to recognize and reward the employees who have displayed exemplary performance and gave much contribution to the companys success. Having a designed system allowed the company to apply a consistent approach for appraising the employees performance, even for those working in other international offices. This approach is composed of tools that facilitate the employees career development and personal growth; Reward programs are also included. These programs generally help in motivating the employees to contribute more for attaining business success (Cadbury Schweppes 2006e). The managers of the company are also assessed using this system. Specifically, the company makes use behavioral factors that support its global leadership needs, which include accountability, adaptability, aggressiveness, forward-thinking capability, motivation, collaboration, teamwork and company values. A separate assessment process is also used by the company in order to evaluate other potentials of its managers; this enables the company to identify other roles its managers could perform. Due rewards are also provided to the individual based on the outcome of his or her performance appraisal (Cadbury Schweppes 2006d). Aside from the individual performance of the employees and managers, the overall performance of the business in relation to the people it serves is also assessed. For this, Cadbury Schweppes uses the climate survey tool that has the ability to identify the relation between overall business performance and employee engagement. This tool was initially used for the companys 10,000 global managers in 2004 and then applied too all employees the following year (Cadbury Schweppes 2006d). 2.3 Impact of the companys HR strategies The use of multiple strategies related to SHRM application has generally been beneficial for Cadbury Schweppes. The performance measurement system of the company for example, motivated the employees to work their best. This finding was further stressed when a study finding showed that almost 90% of the companys global employees are proud to be employed by Cadbury Schweppes. The survey conducted by the company also showed that the employees are highly committed and engaged to good work performance. The commitment of the employees represents the employees attachment to the company while engagement indicates the level of effort the employees are willing to give for the company; they key factors have been directly related to the surveys key areas. The findings clearly showed that Cadbury Schweppes succeeds globally through its employees engagement and commitment, which were brought about by its HR strategies. The outcome of the survey was further stressed by the employee turnover records of the company. As of 2003, the turnover rate was at low level of 2.5% at an annual basis; executive population has also dropped minimally from 180 to 165 in 2003 to 2004. The number of women working in the company on the other hand had increased from 11% in 2003 to 13% in 2004. Despite the promising outcome of the survey, the company sees it necessary to continuously improve the level of engagement employees have for good performance (Cadbury Schweppes 2006e). The performance appraisal system also made the employees more aware of what the company expects from them; this strategy also encouraged the employees to constantly seek ways on how their performance can be improved. The utilization of the performance system has also been helpful for the company as it becomes more knowledgeable with the operation areas that need improvements (Cadbury Schweppes 2006d). In general, having a performance appraisal system in the companys SHRM strategy helped it to become proactive in maintaining its good business practices and in developing ways on how to be a better company. The training and programs of the company has also been showing positive outcomes. Its communication-related programs for example, have been able to enhance the employees communication and engagement level. These skill developments in turn, enabled the company to accomplish several collective bargaining agreements. The SHRM efforts of the company also encourage share ownership among the employees. Specifically, the HR strategy of Cadbury Schweppes made its all-employee share plan arrangements accessible to its employees in UK, US, Spain, New Zealand, Mexico, Portugal, Netherlands, Germany, Australia, France and Ireland. This achievement helped in bringing the companys global employees together (Cadbury Schweppes 2006b). The use of ethical practices in the recruitment and selection of the companys employees has also been of benefit especially in ensuring the high standard performance of the staff. Improving the means of recruiting through information technology systems has also helped the company in short listing the best applicants. Since this development has improved the speed of the of the recruitment process, the company has more time to assess job-related exercises. The improved psychometric test allows Cadbury Schweppes to gain information that emphasize the candidates distinct abilities (Graduate Recruiter 2006). Chapter III: RESEARCH METHODOLOGY 3.1 Introduction Strategic human resource management has been recognized by various companies as an important factor for achieving business success. Cadbury Schweppes is among those major companies who have long been applying various human resource strategies to achieve good business outcomes. This research was then conducted with aim of identifying the role of SHRM in the achievement of global success using the case of Cadbury Schweppes in UK. In order to achieve this research aim, the researcher used the descriptive method of research. A total of 30 respondents from the companys human resource department were selected in random. The survey questionnaire, structure in Likert-format, served as the main research instrument for this study. In addition to primary information, the researcher also used books, journals and other literatures as sources of secondary data. By means of weighted mean computation and the Likert scale, the results of the survey were then analyzed; relevant literatures were used t o discuss these results. 3.2 Data Requirement In order to achieve the objectives of this research, the researcher would need data that would describe the role of SHRM to the global growth and success of Cadbury Schweppes. For this, the researcher would have to contact people who are knowledgeable of the HR strategies developed and implemented by the company; people who are aware of how these strategies had impacted Cadbury Schweppes would also be helpful in answering the needs of this study. Thus, the researcher saw it appropriate to use some of the human resource staff from the company. Considering their participation and experience with these HR strategies, they would be able to provide the data required of this study. 3.3 Research Design In this research, the descriptive method was utilized. The purpose of employing the descriptive method is to describe the nature of a condition, as it takes place during the time of the study and to explore the cause or causes of a particular condition. The researcher opted to use this kind of research considering the desire to acquire first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study. According to Creswell (1994), the descriptive method of research is to gather information about the present existing condition. This research method is advantageous for the researcher due to its flexibility; this method can use either qualitative or quantitative data or both, giving the researcher greater options in selecting the instrument for data-gathering. The aim of the research is to determine the role strategic human resource management in the global growth of Cadbury Schweppes; the descriptive method was then appropriate for this research since this method is used for gathering prevailing conditions. The research used human resource management employees as respondents from Cadbury Schweppes based in UK in order to gather relevant data; the descriptive method was then appropriate as this allowed the identification of the similarities and differences of the respondents answers. 3.3.1 Research Philosophy In order to carry out the research, the researcher ensured that a certain research philosophy framework is followed throughout the process. In particular, as this study will make use of human participants for data collection, ethical considerations were taken into account. This is in line with the researchers aim of carrying out the entire process ethically. Among the significant ethical issues that need attention include consent, confidentiality and data protection. Gaining Consent Securing permission and gaining the consent of the participants for this study is an important ethical consideration. In order to do so, the researcher relayed the aims of the research clearly to all participants. Each participant was asked to accomplish a consent form, stating in detail all the activities involved as well as the purpose of the study. The reasons why the human resource staff of the company was selected as participants were also stated so as to enable the selected participants to connect the aims of the research with that of the participant qualifications. In the consent form, the researcher also discussed in detail all the treatments or procedures to be done in the process. The possible risks that may be part of the research were also discussed with the participants in orde

Abbey Road Essays -- essays research papers

â€Å"Abbey Road† By The Beatles Abbey Road is heralded as one of the greatest rock ‘n roll albums ever. It grinds with hard rock and sways with soft guitar. The variety of the tracks provides something for everyone. It was created in 1969 at the famous Abbey Road studios. George Martin and Geoff Emerick, who had produced many other Beatles’ albums, contributed to this work. This album is one of the more famous albums of the Beatles, who are one of the most popular bands ever. Almost every piece of this album, even the cover, is art works in themselves. The album begins with the hard-rocker â€Å"Come Together†. The song is a perfect example of John Lennon’s rock influence in the Beatles. â€Å"Come Together† is a song that’s popularity has been revived due to its appearances in many commercials. Its trademark chorus, â€Å"Come together right now over me†, is known just about everywhere. Ringo’s heavy drums and John’s deep poetic lyrics drive the song, while Paul’s voice and George’s sharp guitar contribute to the body of this song. John Lennon was well known for his creative lyrics. His mind provided lyrics for such insightful songs such as â€Å"Across the Universe† and â€Å"A Day in the Life†. The third track is â€Å"Maxwell’s Silver Hammer†. This song is a humorous tune about a boy who enjoys attacking people with a silver hammer. It is a playful piano jingle that reflects on Paul’s influence on the album. Paul McCartney’s songs usually presented the lighter, more friendly side of the Beatles. Pau...

Comparing Poor Mans Pudding, Bartleby, Ministers Black Veil, or Masqu

Lack of Epiphany in Poor Man's Pudding, Bartleby, Minister's Black Veil, or Masque of the Red Death In the Melville stories, "Poor Man's Pudding and Rich Man's Crumbs" and "Bartleby, the Scrivener", the narrators go through what appear to be life-changing experiences. Hawthorne offers a similar outline in "The Minister's Black Veil" as does Poe in "Masque of the Red Death". Yet, at the conclusion of each of these stories, there is no evidence to suggest that the narrator is affected by the differences (and perhaps similarities) of their lives and those less fortunate.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In "Poor Man's Pudding and Rich Man's Crumbs" The narrator has the opportunity to absorb, as much as an "outsider" can, the heartache and trials of the lower class. While he cannot deny the experience of being in the Coulters home as thought provoking-- that appears to be all it is for him. "But the instinct of the poor is wiser than we think". He does not totally align himself with the upper class in the second part of the story but he will not refuse the benefits and privileges of wealth. He may be inwardly affected by the gluttony and callousness of the rich and the sympathetic circumstances of the poor, but any inward conversion is not exemplified in his outward behavior. ..Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed".Here, I believe, the reader is the one who is changed by the narrator's experiences an d the lack of change on the part of the narrator is upsetting to the reader. The reader is able to go with the narrator through both situations, but unlike the narrator, the reader is able to sympathize with th... ...ected by the differences (and perhaps similarities) of their lives and those less fortunate. They stand at the crossroad that would define their character and their future course of action. Some choose ambivalence, some choose to see and turn away, others may even convince themselves that they are actually better than they used to be. But without acting on any internal change these people have failed to convince the reader that they have been redeemed. Their inability or unwillingness to extend themselves to the cause of brotherhood and human kindness is their testament. The reader has no pity for these men, but unlike them the reader can internalize the lessons of their experiences and effect change in their own lives. Their failure to act is their greatest folly, but the reader can rise above these characters, recognizing their failure and take a different path. Comparing Poor Man's Pudding, Bartleby, Minister's Black Veil, or Masqu Lack of Epiphany in Poor Man's Pudding, Bartleby, Minister's Black Veil, or Masque of the Red Death In the Melville stories, "Poor Man's Pudding and Rich Man's Crumbs" and "Bartleby, the Scrivener", the narrators go through what appear to be life-changing experiences. Hawthorne offers a similar outline in "The Minister's Black Veil" as does Poe in "Masque of the Red Death". Yet, at the conclusion of each of these stories, there is no evidence to suggest that the narrator is affected by the differences (and perhaps similarities) of their lives and those less fortunate.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In "Poor Man's Pudding and Rich Man's Crumbs" The narrator has the opportunity to absorb, as much as an "outsider" can, the heartache and trials of the lower class. While he cannot deny the experience of being in the Coulters home as thought provoking-- that appears to be all it is for him. "But the instinct of the poor is wiser than we think". He does not totally align himself with the upper class in the second part of the story but he will not refuse the benefits and privileges of wealth. He may be inwardly affected by the gluttony and callousness of the rich and the sympathetic circumstances of the poor, but any inward conversion is not exemplified in his outward behavior. ..Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed".Here, I believe, the reader is the one who is changed by the narrator's experiences an d the lack of change on the part of the narrator is upsetting to the reader. The reader is able to go with the narrator through both situations, but unlike the narrator, the reader is able to sympathize with th... ...ected by the differences (and perhaps similarities) of their lives and those less fortunate. They stand at the crossroad that would define their character and their future course of action. Some choose ambivalence, some choose to see and turn away, others may even convince themselves that they are actually better than they used to be. But without acting on any internal change these people have failed to convince the reader that they have been redeemed. Their inability or unwillingness to extend themselves to the cause of brotherhood and human kindness is their testament. The reader has no pity for these men, but unlike them the reader can internalize the lessons of their experiences and effect change in their own lives. Their failure to act is their greatest folly, but the reader can rise above these characters, recognizing their failure and take a different path.

Computing project using Microsoft Access Essay

One of the administrative tasks in a hospital is to keep a record of loans to patients of equipment such as wheelchairs and crutches. The patients borrowing the equipment may still be in hospital or they may have been discharged. Records have to be kept of what equipment has been borrowed, by whom and when, and also if any equipment is not available because it is being repaired. You have been asked to create a computer application to replace the present manual one to record the necessary details to enable greater control to be kept and so cut down on loss and wastage. Design For this project, I am going to use Microsoft Access. The table below shows my design tasks list for the hospital patient and equipment database. Task Number Object Task Description 1 Patient Table Design the Patient table and the properties of its attributes 2 Equipment Table Design the Equipment table and the properties of its attributes 3 Equipment Status Table Design the Equpstat table for the Equipment Form Drop-down box 4 Patient Titles Table Design the Titles table for the Patient Form Drop-down box 6 Equipment Report. Design a Report to show current equipment status 7 Equipment Return Letter Design a report, in the style of a letter, which is sent to patients who have overdue equipment. 8 Patient Entry Form Design a form to provide a â€Å"front end† for the patient entry table 9 Equipment Booking Form Design a form to book equipment out to patients 10 Main Menu Form Design a form which can execute the other forms and records 11 Autoexec Macro Design a Macro that executes automatically on database open and opens the main menu 12 Security Implement some kind of security into the database. Design of Equipment Loaning System There are several types of equipment, ranging from wheelchairs to neck collars, and each type of equipment is available in different sizes, there are also several of each type and size of equipment. When deciding how to input and store the equipment into my database, I decided that their was two potential paths that I could follow: to place the equipment into my database with one record for each type and size of equipment, and having a â€Å"number in stock† field to represent multiples of equipment types with the same size. The second way of representing the data would be to let each individual piece of equipment have its own record. I elected to take the second route, although it would take more space, it would mean that if an item was damaged in someway, a note of the problem could be made in a â€Å"notes† field in the items record. The second problem I discovered was coming up with a way of having a code for each individual piece of equipment. Again, I found two main ways of doing this: An auto number system, or a system which would allow a user to determine what the equipment is just by looking at the code. I felt that the second way would be a better way of doing this, so I devised a system that fulfils this requirement (shown below). Item Codes Code Explanation WC Wheelchair CR Crutch EC Elbow Crutch NC Neck Collar -J Junior Size -S Small Size -M Medium Size -L Large Size -A Adult Size To get the individual items code, you simply add a number onto the end of the code. E. g. Junior Wheelchair number 1 would be WC-J1. Using this system, new pieces of equipment can be added with ease, whereas with an auto number system, it would mess up the order of the numbers. Equipment Booking Form Design Security This database holds confidential information about patients, and should therefore be kept secure from illegitimate access, both physically and electronically. As stated in the data protection act, it would be the hospitals responsibility to keep the data secure. I have employed a basic password protection system into the database, with only one user, as I feel that a multi user password system with different levels of access for each user would be inappropriate in this instance because the only users would be the desk staff, and occasionally the administrator for backup purposes. To provide security on an electronic level, I would recommend making sure there is an appropriate firewall system installed if the terminal the database is running on is connected to any network external to the hospital. I would also recommend a weekly backup to a removable media, kept in a fireproof safe, with back copies kept for as long as possible, in case the system is infected with an undetected Trojan. On a physical level, I would recommend that rooms where terminals have access to the database are kept locked. Implementation Task Number Object Screen Dumps from Access 1. Design View of Patient Form 13 Patient Form Data View of Patient Form 14 Main Menu Form Design View of Main Menu Form 15 Main Menu Form Data View of Main Menu Form 16 Main Menu Form Show Visual Basic Code used 17 Autoexec Macro Screen Dump of Autoexec Macro Patient Table Equipment Table Equipment Status Table Patient Titles Table Entity Relationship Diagram Equipment Report Customer Letter Report Equipment Form Patient Form Main Menu Form Main Menu (Vb Code) For the main menu, I decided to incorporate a clock, as it provides a purpose (to tell the time), and also looks good on the form. Equipment Form (Vb Code) For the equipment booking form, I used two visual basic sub forms; the first sets the return date and the out date when the â€Å"loan out† button is pressed, and the second sets the return date and the out date to zero when the combo box which controls the status of the item is changed. I used this last bit of code because it saves the user having to delete the date manually when the equipment is returned from loan, but it has the downside of having to set the status before pressing the â€Å"loan out† button, otherwise it undoes this action.

Aristotle Virtue Theory Essay

Aristotle’s Virtue theory is based on Teleology and the Golden Mean. He says that to be virtuous that we need to act with excellence. He believed that everything on this earth has its own virtue, meaning that if it performs the way it’s supposed to by its nature then it is virtuous. He asserted that every event had four causes or four factors that work on it and to bring it into being; 1) Material Cause- the â€Å"stuff the thing is made of. 2) Efficient Cause- the force that has brought it into being. 3) Formal cause- the shape or idea (the Form) of the thing. 4) Final cause- the purpose of the thing. Virtue is not just for humans; it means that everything that exists has a purpose. The Golden Mean-is an action or feeling that corresponds to a particular situation at the right time, in the right way, in the right amount, and for the right reason. Not too much, not too little, everything in moderation. It is what is â€Å"Good for man† where a human can excel, what a human is meant to do and where a human will find happiness. He determined that if we are able to choose the proper response to every situation in life then we are morally good. It is all about the reasonably thought  out decisions we make and the action we take after we have made them. The virtuous person finds and choses the one that is intermediate. These are human concerns that are constant and remain the same concerns throughout the ages. Since we are human beings and capable of rational decision making we can be prone to go toward one extreme or the other, we must beware of our own short comings. It is only through habitually practicing to try to make the right decisions that we can aspire to become virtuous. It is not our response to a single situation but how we respond as a general rule. We need to be consistent in our actions. Aristotle realized that this is something that doesn’t come overnight but that it takes time to mold ourselves. How we find out what the mean is in every situation is through reason, the more times we have done it and acted correctly the better we can build the habit of responding appropriately. He specifies that there are some acts that are just wrong by themselves, i. e. stealing, lying and murdering, and cannot be done in the right amount. There are also acts that cannot be done too often such as justice. You can never be â€Å"too just†. It takes a lifetime of training and commitment we are not inherently born this way. It is not enough that you just act on your intentions but you need to succeed in order to be virtuous. Once you have succeeded in living a virtuous life then as a virtuous person your future actions will be generally virtuous because you developed virtuous habits. There are three dispositions to every situation: two vices, one on either side of virtue which in the middle. Aristotle advises us to keep trying until we get it right. Some extremes are closer to the middle than others. If you don’t know which one to choose, stay away from the extreme that is more opposed to the mean than the other extreme. We each have our own ideals and failings but our responses to a situation need to remain flexible and a virtuous response will reveal itself. The appropriate way to handle the situation will fall within a range that is recognized by other virtuous people. He believed that there could be a perfectly virtuous person. He also believed that if you are virtuous in one respect but fail terribly in another then you have lost out completely. If you deviate only slightly you are still a virtuous person, a person who is good at being human and at realizing the human potential. His thoughts on courage were that if you had too little courage you were a coward and that if you had too much courage you could be fool hardy, rush in and make rash decisions. He felt that there was nothing wrong with enjoying pleasure, but if you overdid it you are intemperate. If you are not capable of enjoying pleasure at all then you are unimpressionable. The virtue is to know in what amount to enjoy your pleasure, which would be temperance. The key is to enjoy in moderation. His opinion on spending money was that if you spend too much you are prodigal and spend too little  you’re a miser, just the right amount at the right time on the right people for the right reason makes you liberal. It is also possible to overestimate your honor, and become vain or underestimate it and become humble. He described proper pride as the virtuous way to estimate yourself and your accomplishments. There is nothing wrong with feeling angry but you need to be even tempered. Being hot tempered is 1 / 2 a vice but so is also being meek. Let your anger be in proportion to the offense against you. Truthfulness is a virtue but his idea of a deficiency of truthfulness is irony â€Å"mock modesty†Ã‚  (downplaying the situation), the excess of truthfulness, bragging. It is all about assessing the situation and acting accordingly, don’t underplay the truth but don’t overplay the truth either. The sole reason for designing the development of virtuous character was that Aristotle felt that being virtuous makes you happy. Happiness is what is good for a man. A good life means a happy life, but a good person also means a moral person. We can be happy only if we are good. Our highest goal, our purpose as a human being, is to live well, be happy, and to do well. He also warned that if  we rely too much on pleasures that one day they won’t give us the thrill they used to. What is good for us can’t be something that harms us and over indulgence in too many pleasures can be harmful. The requirement of true happiness is that it must be stand the test of time. Something that no one can take away from us and that is not harmful but beneficial that would be our good reasoning and contemplation. The ultimate happy life is that of the life of a thinker. He did not believe in an afterlife or a god that watches over humanity. He states that the soul is the  Ã¢â‚¬Å"form† of a human and the body is the â€Å"matter†, but since form cannot exist separately from matter when the body dies the soul ceases to exist. Happiness is only for the living and must be achieved in the here and now for a person to have fulfilled their purpose. One of the weaknesses of Virtue Ethics is that Aristotle was talking about the ruling class. If there is to be equality for all then there needs to be a moral theory that everyone follows regardless of whom they are. The laws need to be reasonable and clear. Virtues were also too vague and weren’t helpful in solving problems. When you have two virtuous  people that disagree how can you tell which one is correct. How is it decided which one is more virtuous than the other? With a clear set of morals and laws the problem is much easier resolved. Also why can’t humans have more than one purpose? There are many people that are equally good at several different things. Look at the musician that is equally good at playing the guitar and singing. Which purpose are they supposed to choose? Aristotle’s Virtue theory is basically based on the fact that everything has a purpose and as humans our happiness is determined by the choices that we make. We should always strive to achieve our purpose whatever that may be and during that struggle hopefully we will achieve happiness. His theory may have some weaknesses but some of the ideas are supportable in my opinion. You need to use your logic to make informed decisions. Practice making the right choices, this practice will eventually turn into a habit. Make decisions that don’t cause harm to yourself or others. Lastly everything in moderation is a good rule to live by. This I believe will go a long way in helping human beings to achieve happiness. POWERED BY TCPDF (WWW. TCPDF. ORG).