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Corporate Strategies of Emirates Airlines

Question 1

Organization: Emirates Airlines

Corporate Strategies of Emirates Airlines

Value-Creating Strategy

A value-creating strategy is one in which the business looks to push out its rivals by picking up more piece of the overall industry. These methodologies try to increase the value of the business’ items and administrations by misusing economies of extension – the assets and capacities of the business that can be imparted over the whole association to diminish expenses and expand effectiveness. A key thought behind worth making method is expansion: offering more items to more purchasers inside the business sector trying to command all of a piece of the general piece of the overall industry (O’Connell, 2011).

Value-Neutral Strategy

A business can employ a value-neutral strategy isn’t such a great amount of concerned with apportioning assets and labor as it is with securing its present place inside the business. Generally, esteem nonpartisan method helps shore up the business’ operations plan. Launching administrative oversight, making cooperative energy between offices, attempting to diminish hazard and securing an enduring money stream are worth unbiased methodologies.

Business Strategies

Coordinate Unit Activities

A common business-level strategy is the coordination of all individual unit exercises found in a business. Unit exercises may be broken around office, areas of the division and individual employment positions. The coordination of these gatherings or people typically falls on a director or manager. The chief is in charge of getting representatives in agreement and centering these people on fulfilling objectives or destinations. Directors or chiefs might likewise be in charge of dispensing assets among a few distinctive exercises.

Utilize Human Resources

Companies must be able use the accessible human assets in their organization and the general economy. Just about everything organizations need some type of human work to fulfill business objectives and destinations. Organizations create a business-level technique to guarantee the association has enough representatives to deliver a particular yield of products or administrations. This business-level methodology is additionally in charge of guaranteeing the right kind of human work is procured for business operations. This regularly incorporates an investigation to figure out whether gifted or incompetent work is required to finish business capacities.

Functional Strategies

A practical technique is one that manages the assignment and exercises of a certain business territory. Managers and directors make up specific guidelines and rules for representatives to take after. Every office works by these rules, with all offices cooperating to accomplish the general organization objectives. Normal regions where an organization may execute a practical technique incorporate the generation, fund, or the innovative work divisions. A hierarchical method might likewise be practical. Creation division techniques frequently fall under the “make versus purchase” examination. Every item or product offering is explored by holders and directors, who use particular tenets to settle on this choice. The practical method helps direct how to choose the best option for new or existing items. For instance, the system may include exploring accessible materials, taking a gander at the work ability in the current market, and assessing the expenses for outsourcing the item for creation purposes. The result prompts an educated choice on how an organization will continue with item creation.

An organization’s account office ordinarily settles on choices on capital structure. The capital structure incorporates a mix of obligation and value trusts to back huge business operations. A useful technique gives direction on the most proficient method to audit operational pay and choose what part ought to be reinvested into the organization. From here, money workers then look to changed subsidizing alternatives to reserve the shortage in real money from operations. Selecting the least cost of capital from the mix of subsidizing choices is commonly the objective of a practical system.

Question B:

Performance Assessment for the Flying Staff in the Airlines Industry

Parts of the flying staff in the carrier part complete the absolute most paramount undertakings of their individual associations. Whilst the fruitful operations of an aerial shuttle is without a doubt reliant upon the joined exertions of workers on the ground and circulating everywhere, the flying group have the central obligation of really transporting hierarchical customers and making their encounters, fulfilling, agreeable and charming. The efficiencies, capacities and state of mind of parts of the flying group are indispensably essential for client fulfillment and client maintenance. Inefficiencies and deficiencies on their part can prompt client disappointment, with weighty unfriendly comes about on organization picture, deals and gainfulness.

Upgrading the execution of the flight group is in this manner a real target of all proficient and well run aerial transports. Most such aerial shuttles give careful consideration to the choice of their flying staff and create expand and specific preparing projects for their expert and self-improvement. Execution evaluations of such workers are done routinely and empower hierarchical administrations to find out diverse features of the identities, abilities and mentality of flying staff. Such execution evaluations structure the premise for advancements, work reallocations and compensation increments. Fittingly arranged and led execution evaluations can hence absolutely build the certainty and inspiration of air transport staff and improve their execution and benefit.

Question C

Job Knowledge Tests

Job knowledge tests, now and then alluded to as accomplishment or dominance tests, regularly comprise of inquiries intended to evaluate specialized or proficient ability in particular information ranges. Work learning tests assess what an individual knows at the time of taking the test. Dissimilar to cognitive capacity tests, there is no endeavor to survey the candidate’s learning potential. At the end of the day, a vocation information test can be utilized to illuminate executives what a candidate at present knows, yet not whether the individual can be depended on to ace new material in an opportune way. Work information tests are not proper when candidates will be prepared after choice in the discriminating learning zones required for the employment.

Work information tests are utilized as a part of circumstances where candidates should as of now have an assortment of scholarly data before being contracted. They are especially helpful for occupations obliging particular or specialized information that must be obtained over a broadened time of time. Illustrations of occupation information tests incorporate tests of essential bookkeeping standards, machine programming, budgetary administration, and learning of agreement law. Work information tests are frequently built on the premise of an examination of the errands that make up the employment. While the most common arrangement for work information test is a different decision inquiry position, different organizations incorporate composed papers and fill-in-the-clear inquiries.

Authorizing exams, org confirmation, and/or proficient affirmation projects are additionally work information tests. Licensure and certificate are both sorts of credentialing – the methodology of giving an assignment that shows fitness in a subject or zone. Licensure is more prohibitive than accreditation and normally alludes to the required Governmental prerequisite important to practice in a specific calling or occupation. A passing score on work information test is commonly a center necessity to acquire an expert permit. Licensure suggests practice and title insurance. This implies just people who hold a permit are allowed to practice and utilize a specific title. For instance, to provide legal counsel, a graduate school graduate must seek induction into a state bar affiliation that obliges doing the certified lawyer’s exam licensure examination. Certificate is generally an intentional methodology organized inside a nongovernmental or single Governmental organization in which people are perceived for cutting edge learning and expertise. Similarly as with licensure, confirmation commonly obliges a passing score on an occupation information exam.

The requirement for print administration suppliers and organization supervisors to increase a strong handle of what’s going ahead inside their organizations has never been more prominent. The blend of savage cost rivalry, wide swings in deals levels, and the increment in media channels, the continuous digitization of creation work processes, and the capital-escalated nature of the printing business has lifted the essentialness of evaluating business execution. In a quick moving and focused environment, PSPS just can’t bear the cost of for business working results to be an astonishment.

Question D

While PSPS are experts at measuring generation proficiency, the business side of operations is frequently dismissed. Directing a business appraisal can be an essential instrument for measuring business execution and distinguishing regions of potential development. It’s not difficult to lose course and concentrate on regular operations, yet not taking the time to give your business an examination can put your association’s future in hazard. Leading a business evaluation assesses the wellbeing of zones that are key for development and change (Nyarko, 2010).

An alternate component hoisting the significance of surveying business operations is the need to stretch item and administration offerings. Developing new income streams that improve the estimation of print is the new mantra for the realistic correspondences industry. Firms of all sizes are looking to extend the auxiliary administrations that encompass print and the new interchanges channels that supplement it. The administrations that organizations add to improve income (e.g., promoting, getting done with, mailing, new correspondence channels) are truly differed, yet the accomplishment of any new administration development is manufactured in the beginning arranging and appraisal stages, before any ventures are made.

A Disk evaluation test helps target initiative abilities. The letters stand for predominance, intuitive, unfaltering quality and wary. The profile shows whether a worker lives up to expectations with individuals by attempting to shape their surroundings through orders, impact individuals by influence, chip in with others to accomplish things or work faithfully because of circumstances to get undertakings finished. The profile cases to help businesses construct gainful groups, upgrade deals and client benefit via preparing workers to better comprehend clients and support in representative recruitment, maintenance and preparing.

Reference

Nyarko, Y. (2010). The United Arab Emirates: Some Lessons in Economic Development (No. 2010, 11). Working paper//World Institute for Development Economics Research.

O’Connell, J. F. (2011). The rise of the Arabian Gulf carriers: An insight into the business model of Emirates Airline. Journal of Air Transport Management,17(6), 339-346.

Corporate Strategy in Wal-Mart

Corporate Strategy in Wal-Mart

Name

Institution

Concentration

Apple Inc is a corporation that uses the CONCENTRATION corporate level strategy in its production of personal computers, tablet computers and music equipment. Its main offices are located in Cupertino, California. Apple Inc mainly produces products aimed at a particular market niche, as can be appreciated from the pricing of their products; most of the target customers are those who prefer exclusive, high end and expensive products. Further the unique nature of its products and distribution system targets a given group. All of its products utilize unique platforms, including the Ipod, which is configured in a manner that ensures exclusivity in its usage. The, uniqueness of the products it provides, as well as the fact that in its short history there has never been a departure from its set of products is a clear demonstration of the concentration strategy.

Growth

Wal-Mart Stores is a retail corporation that runs a chain of discount warehouse and departmental stores in over 15 countries, with its headquarters in Bentonville Arkansas. Essentially, it has a chain of more than 8500 stores which are operated under almost 55 different trade names. Wal-Mart Stores therefore, uses the GROWTH corporate level strategy, concentrating on not just geographic expansion, but also product development. This strategy is clearly evident from the fact that Wal-Mart has grown from 1 store to the more than 8500 indicated above. Further, the differentiation in the number of products it offers also serves to highlight the application of the growth strategy in earnest (Dess, Lumpkin, & Taylor, 2004).

Integration

Warner Brothers, is a media industry company concerned with the production of motion pictures, and has its headquarters in Burbank California. The company utilizes the INTEGRATION strategy, and specifically, the vertical integration approach, not only in its production of the motion pictures, but also when it comes to distribution. The company actually owns half of the television network CW, through which it is then able to distribute motion pictures it has produced; a good example being the Smallville series. This shows vertical integration, as it has opted to undertake activities that would have otherwise been provided by other business channels, more so distribution (forward integration).

Diversification

Essar Group, is a multinational corporation that has its headquarters in Mumbai India, the group essentially diversifies into a number of varied products, ranging from steel, energy, communications, construction, power and logistics amongst others. The company uses the DIVERSIFICATION strategy, as evidenced by the fact that not only did the company start off as a construction company but it has grown into a conglomerate, with interests in numerous other unrelated industries. Seemingly, this strategy of expanding into previously unrelated fields is still ongoing, implying a corporate level strategy of expanding into products that in no way relate to their already existing products, a theme which is in line with the diversification strategy.

Investment Reduction

Iberdrola, is a multinational company based in Bilbao Spain, that concentrates on the provision of electric utilities. Due to a number of problems in its recent history, the company has resorted to adopting the INVESTMENT REDUCTION strategy. The strategy to reduce investment to about €3.5 billion per year, until 2014, was mainly aimed at providing and releasing funds for usage in the growth and expansion of the company in areas such as networks, renewables and other liberalized activities, which may assist in the growth aforementioned. The company therefore, has adopted an investment reduction strategy in order to facilitate growth in other areas (Gerry, Scholes, & Whittington, 2008).

References

Dess, G., Lumpkin, G., Taylor, M. (2004). Strategic Management: Creating CompetitiveAdvantages. McGraw-Hill College.

Gerry, J., Scholes, K., & Whittington, R. (2008). Exploring Corporate Strategy. Financial Times,Prentice Hall.

Corporate Strategy McDonalds in Chinese Market

MCDONALD’S IN CHINESE MARKET

Name

Class

Professor

University

City, State

Date

Corporate Strategy: McDonald’s in Chinese Market

Introduction

McDonald’s is the best and largest centralized international company today. The company was started in San Bernardino California, in 1940 by two brothers Mac McDonald and Dick. McDonald’s specializes in supplying fast foods like French fries, hamburgers and many other consumable products. Currently McDonald’s operates in 121 countries worldwide and has 30,000 restaurants. For McDonald’s to invest and market its products in foreign countries, it employs three primary methods: company owned restaurants, franchising and joint ventures (DAVIS, 2000).

In China, McDonald’s is located in Beijing and other major cities and towns. McDonald’s was first opened in Beijing, which is termed as a localization or adaptation of American cities. McDonald’s opened in 1992 with approximately 700 seats and 29 cash registers serving 40,000 customers within the first few days of operation. The opening of McDonald’s restaurant in China became an instant attraction for the domestic tourists who flocked the premises and enjoyed the American culture. After opening the restaurant in Beijing, a series of restaurants spread in city of Beijing and by the end of 1996, 29 outlets were already opened all over the city. In China, Beijing has the largest market for McDonald’s that the company can capitalize on to open more outlets countrywide since the company has plans to open over 600 outlets in China by the end of 19th Century (ALON & WELSH, 2001).

The introduction of McDonald’s in China was at first greeted with a negative attitude, but later the political system accepted the idea of eating in a foreign restaurant. In fact during the National Day in China in 1993, the government organized a dinner at McDonald’s restaurant located at Wangfujing Street. Unfortunately, the largest McDonald’s in Beijing was demolished to paved way for the construction of the Oriental Plaza. The management of McDonald’s has introduced franchising method to help in the introduction of new styles of eating in the unfamiliar markets. This method has helped so many locals in China to eat from McDonald’s, which is a foreign restaurant, without fear.

The residents of Beijing see McDonald’s as a symbol of America and value it as a way of modernizing the country and the Chinese society. The success of McDonald’s products is the high standard procedures used by the staff in food production, its current executive methods and its scientific recipes (REES & POLLACK, 2004). McDonald’s is known as a large company in the American market and many youths prefer working at McDonald’s before moving from their country to go and look for work in other states or countries. McDonald’s gives the youth adequate experience that is crucial when they later seek jobs with other companies.

The introduction and incorporation of McDonald’s restaurant in the Chinese market has boosted the economy of the country because of the high sales of their products to both the domestic tourists and the international tourists visiting the country. The restaurant has high quality foods that attract many repeat customers to eat there hence is gains competitive advantage in the Chinese market (BERGSTROM, 2012).

Market and Customer

The market scope is defined as the target consumers who are interested in the products being offered by an organization. The market is defined by the total populations, which are triggered by factors such as increase in a product price and government policies. To understand the market scope of MacDonald’s, the marketing segment needs to have an understanding of the customers to satisfy their needs by offering a marketing mix that could be satisfactory to the consumers. These could be done by identifying the market segment, the distribution channels to access the target market and the resources needed to reach the market scope as MacDonald’s restaurants needs a large market size in order to have enough customers. The market scope is made of customers of different cultural differences and the customers’ behavior is affected by beliefs, custom and values (Anna, 2006).

Product

McDonald is the second largest fast food chain in China. The company has placed adaptive measures to cater for the Chinese clients’ preferences. The menu has been localized based on chicken and a few products derived from beef (Ritzer, 2009). McDonald’s offers different types of chicken sandwiches, chicken wings, fish sandwich and McNuggets. McDonald’s carry ice cream cones, the McFlurry, pineapple pies and sundaes. Their breakfast menu consists of a ham, an egg, cheese sandwich and pancakes. McDonald’s also offers soft drinks in McExpress stores and ice cream desserts, which could be delivered to the clients at a small fee. The introduction of McDonald’s McCafe in stores offers coffee, special drinks such as lattes, and sweets for the growing number of coffee customers.

Technology

Technology has played a major role in McDonald’s food stores and restaurants in the modernization of their restaurants. This is evident in the strategy to evolve their menus and their customers experience to the new nutrition- based products. McDonald’s Corporation has revolutionized the use of technology in restaurants in a bid to increase sales in terms of the speed in serving customers (Svetlana, 2008). McDonald’s has installed plasma and wireless internet platforms for free thus incorporating modern professionalism to satisfy its customers’ requirements. In addition, McDonald’s provides laptops outlets and video games kiosks to its customers making its stores a hang out place for its demographic market. The use of technological innovation has shortened the time spent on payment, processing and the preparation of McDonald’s products.

Geographic Area

McDonald’s Corporation is based upon a geographic structure that keeps major markets while expanding into emerging markets. The penetration strategy of McDonald’s restaurants in China has been enhanced with the issue of the development license, which has led to the expansion, and the creation of opportunities for the local enterprise in the Chinese market. The first McDonald’s restaurant opened in China was established in the South City of Shenzed in Beijing (Watson, 2006). Despite its late entrance to the Chinese market, it enjoys an advantage being one of the famous brands in the food industry leading to its wide expansion. Presently, McDonald’s has established its stores in over 1,100 locations in Beijing.

McDonald’s Stakeholders

Customers

At McDonald’s, the customers are treated with equality and democracy. Regardless of status or any other criterion, a customer at McDonald’s will be treated with a lot of friendliness and warmth in the restaurant. Customers therefore, patronize McDonald’s to experience moments of equality. In the Chinese restaurants, banquets are very competitive and customers try to outdo one another by ordering for the most expensive food which, in turn, causes the person sitting next to lose face. The competition banquets competition compels customers to rent private room so that they do not experience such embracement (COOMBS, 2013).

At McDonald’s, there are such occurrences since the menu is limited, there are standardized foods and the customers receive items that are of equal quality. Therefore, for people who have less money but need good meals, McDonald’s is the best alternative. The foods offered at McDonald’s offers the customers all the nutritional constituents a needed for a healthy life including water, fat, starch, protein, sugar and vitamins (BERGSTROM, 2012). Therefore, when a customer decides to spend money on a single meal at McDonald’s, he is guaranteed enough nutrition at least for half a day.

Employees

Most of the employees at McDonald’s are the youth. People prefer to work at McDonald’s because it prepares workers to be able to work in any position and from any other company. For example, the Canadian youths look for employment at McDonald’s restaurants before they seek employment elsewhere to broaden their skills. Each employee at McDonald’s plays a major role to ensure the productivity of the company. Employees work as a team and enjoy numerous benefits of being part of the McDonald’s big happy family (RITZIER, 2010). There are picnics offered to the employees that significantly motivate the employees to form lasting friendships.

Employees have the freedom to choose the time they feel is best for them to work. The restaurant ensures that employees work under very safe conditions including catering for their health and security. The employees receive promotions and motivations regularly so that they perform their duties appropriately (RITZIER, 2010). The benefits the employees get at McDonald’s include:

Group insurance plan where the Employees and their families are entitled to health and life insurance plan.

Profit Sharing where the employees get good share of profits of the company and McDonald’s is the greatest profit sharer in the whole world.

Matching Donation Programs where any charitable donation an employee’s gives is compensated by McDonald’s.

The positions at McDonald’s are categorized as follows:

i) The Second Assistant Manager whose roles are to train, motivate and coach the employees.

ii) The First Assistant Manager ensures aspects like: recruitment of new staffs, scheduling the staffs’ activities and managing all the equipment used in the restaurant.

iii) Other functions executed by the managers include performing field operation services, training the employees, developing the employees, human resource management, marketing and supply chain management.

The Suppliers

McDonald’s relies on independent suppliers who can efficiently deliver products by maintaining the company’s standards and specifications. One of the main suppliers of McDonald’s is the Bama Foods which supplies McDonald’s mainly with pineapples, apples and bean curd pies. The other supplier of McDonald’s is the McKey Food Services Ltd which is majorly based at the Shenez city. The Chinese Livestock Company also provides McDonald’s with meat. The suppliers of McDonald’s have outstanding appeal because there are no other suppliers who can meet McDonald’s high quality standard requirements.

Economics Trends of McDonald’s

The numerous branches of the McDonald’s always experience hardships whenever the economies of various countries experience inflation. Exchange rates also have effects on McDonald’s economy. McDonald’s being a business entity usually faces a lot of economic variables in its macro environment. McDonald’s should be well acquainted with the global supply changes and appreciate how the frequent currencies changes because the company sources most its products from the international markets. It is therefore evident that any change in currency and especially the dollar will affect the cost of purchasing McDonald’s products.

McDonald’s faces governmental regulations on taxes in all the nations where it operates branches. The countries have different scales of taxation which makes it rather tricky for the company to allocate funds effectively and this pose a great challenge to the company’s economy. The company also pays a certain percentage of revenue to the mother company in the U.S. The economic conditions of a country also have an impact on the business. Whenever the company tries to price products a bit higher than other foods, people will buy the cheaper foods as the consumers will prefer what they can afford. This is another challenge to McDonald’s as it must strive to capture as many customers as possible. The effect is that the company might end up making great loses. If the economy of a country is good, the consumption of the company’s products would increase regardless of the food pricing.

The Political trend of McDonald’s

The Government policies on the regulations of fast foods have great effects on McDonald’s operations. The main justification why the Chinese government is regulating the fast food markets is to promote the nation’s health by avoiding issues like the cardiovascular diseases, high cholesterol level foods and even obesity. These health issues are basically experienced by the young generations. The government also ensures that only recognized fast food restaurants get the license to carry out the business. McDonald’s needed to create good rapport with the government so as to succeed in the business. When employing the staff, the company must ensure that the employees are hired, compensated and trained according to the stipulated laws of the nation.

The Social Trends of McDonald’s

McDonald’s is taking into consideration the changes in lifestyle of China which is as the result of the development of the economy. The customers are able financially and can eat in very expensive outlets, but despite this fact, customers expect to be served with quality services. McDonald’s is working towards providing the best quality services to the customers and to therefore enjoy the market advantage against other restaurants. The best services given by McDonald’s that makes it different from others restaurants derive from the cutting edge technology. McDonald’s offers several convenient services for the customers including credit card payments, wireless internets, cozy and ambient relaxing points and refreshments.

McDonald’s has also tried to offer menus that favor different cultural beliefs; for example, the Hindu people don’t take meat therefore the company has a menu that favors the Hindus; the Muslims don’t take pork products therefore the company offers an alternative menu for the Muslims. The Chinese also have menus that favor their culture; the Asians like rice while Americans have preference for big sized menus (STOJIC & PFAJFAR 2010). McDonald’s should continue doing more market research and establish what the customers eat as far as culture is concerned.

The Technological Trend of McDonald’s

Technology is not a major macro environment factor in a fast food restaurant. Nevertheless, the company should do a deeper market research to know the new trends that will help in managing its operations. The main technological trends that the company should look into are the supply chain trends so that they supply their products to the customers in the most current technology. The payment systems should also be of modern technology, and the customers should also be able to access the restaurant through the internet (STOJIC & PFAJFAR 2010). The technological methods can be good cost savers both for the customers and the company.

McDonald’s Global Trend

In the first quarter, the leading fast food restaurant in the world had a marginally higher income which was at $ 1.27bn, but the global sales later on fell by 1%. The company says that the drop was due to the harsh winters in the U.S and the Europe. McDonald’s is also facing great pressure from its competitors. The Yum Brands which is the owner of the Pizza Hut, Taco Bell and the Kentucky Fried Chicken is posing a great challenge to McDonald’s as it is rising very fast. The Burger Kings have also redesigned their products in a more appealing way posing another great challenge to McDonald’s (OVERSEAS MISSIONARY FELLOWSHIP, 2008). Following the disappointing third quarter, McDonald’s is trying to make up for the fall so as to get a better response to the continuing financial crisis that is faced globally.

The major focus of McDonald’s for the year 2013 has been to improve its menu and develop innovative products that are very profitable. The company is also working towards producing products that are less time consuming like the chicken bacon and onion sandwich (OVERSEAS MISSIONARY FELLOWSHIP, 2008). Even though McDonald’s is trying to globalize its products, it is vastly experiencing great resistance from different cultures, for example, Japan resisted McDonald’s foods saying that the food caused obesity.

McDonald’s Regulatory Trends

McDonald’s company has taken strong measures to ensure that the business is conducted in a very ethical way and that the business activities comply with the rule of law. The commitment to attain the rules derives from McDonald’s core values. McDonald’s employees have the responsibility to abide by each value including the values of honesty and respect. The commitments are clearly spelt in the company’s Standards of Business Conduct that guide employees to conduct themselves in an ethical fashion (OVERSEAS MISSIONARY FELLOWSHIP, 2008). All the employees of McDonald’s must read McDonald’s Standard of Business conduct and accept to abide by the set rules. McDonald’s organizes a number of workshops and seminars to train the employees on the standards, laws, regulations, and policies that govern the company. All the employees of McDonald’s must obey the Foreign Corrupt Practices Act (FCPA). The (FCPA) act generally strives towards ensuring that politicians or political parties do not use their powers to manipulate or exploit businesses.

The act also ensures that giving bribe to any government official, private businesses, or individuals is prohibited. The employees of McDonald’s must certify yearly that they agree with the FCPA and their local act. The global compliance office of McDonald’s regularly monitors the company’s policies so as to prohibit unethical acts like bribery, money laundering and the chances of conducting business with terrorists (BARNEY & HESTERLY, 2012). This monitoring process is directed by the United States Patriot Act, the FCPA and the Executive order which is 13224. McDonald’s is also required to adhere to the general laws of business operation set by the Chinese government.

Uncertainties of McDonald’s restaurant in China

McDonald’s China faces several challenges despite having a strong brand in the industry. Some of the uncertainties are the pressure derived from the competitors, the government control and political risks, the market cultural differences, an increased labor cost, and the inherent inefficiency in the supply chain.

Competitors

The major competitors to McDonald’s are the Kentucky Fried Chicken and other Yum Brands. This is due to the late entry of McDonald’s in the Chinese market, its strategic decisions, and the localization of the products offered in China by the competitor Kentucky Fried Chicken. McDonald’s faces a major problem from its competitors through its weak copyright issue. Being a globally known brand McDonald’s facing the challenge of the imitation of its product and logo design (Chan, 2009). McDonald’s has the least market share in comparison to its competitors which leads to wrong customer’s perception about the available products and services. This is due to the food quality, diversification and maintenance of lower prices on the products by competitors like Kentucky Fried Chicken in comparison to those of McDonald’s.

Government Policy and Legal Factors

China is faced with the challenge of corruption in the political and legal system that has been catalyzed by lack of transparency in its judicial structure, which does not have binding precedential value. Foreign companies, therefore, do not receive adequate legal and political representation in China. Land ownership is not transparent inevitable, as the government owns the land. The business operation of McDonald’s faces numerous challenges since it entails large amounts of property transaction and privatization of land does not exist (Brown & Ganguly, 2008).

Cultural differences

The diverse Chinese consumption habits are based upon the different cultural beliefs. These consumption habits dictate the taste preferences of the people in towns like Beijing. The cultural food practice determines which foods qualities are accepted by the people. Some cultures in China castigate the consumption of fast foods leading to poor sales of these foods in such regions. McDonald’s Corporation operates a few stores in China as compared to Kentucky Fried Chicken owing to the culture barrier. Kentucky Fried Chicken adapted their products to fit the cultural expectations of the local people before McDonald’s discovered the strategy. McDonald’s has consequently conducted several market researches and initiated strategies to ensure that its fast foods are consistent with the local cultural beliefs. Tailoring the fast foods to fit the local taste and to obey the local cultural beliefs is the only sure strategy for McDonald’s to maintain its undisputed fast food leadership in China (Rein, 2012).

High labor cost and food price inflation

The Chines government’s decision on labor and the one-child policy have caused a decline in the labor pool. The decrease in population in China has increased the labor cost (Scharping, 2000). The cost of living has become expensive hence the wages that McDonald’s pays its employees have also increased. McDonald’s Corporation is faced with the challenge of the rising expectation of customers who want to pay less for products. Such customers perceive the fast foods offered to be of low quality just like their counterparts in America. The price of food has increased affecting the fast food chain in China. The high global commodity prices have broadened the inflation rate and threatened economic growth. Due to this situation, McDonald’s and other food stores have escalated the food prices leading to customers’ frustration. Despite China having the largest population in the world, its food supply chain relies on the small food producers. The big difference between the producers and consumers of fast foods In China calls for mass production that has made McDonald’s to face numerous challenges in managing its supplies (Schütte & Ciarlante, 2010).

Uncertainties Description

Competitors The major competitors of McDonald’s are the Wendy’s, Burger King, Subway, Pizza hut, KFC and the local fast foods. The competition is heightened by strategic decisions, and the localization of the products offered to in China by McDonald’s competitors. McDonald’s has the least market share as compared to its competitors, a situation that creates wrong customer’s perception about its product and services.

Government Policy and Legal Factors

Corruption in the political and legal system has been catalyzed by lack of transparency in China’s judicial structure, which does not have binding precedential values. Foreign companies therefore do not receive legal and political fairness. The operation of McDonald’s business endures numerous challenges as it is involved in large amount of property transaction and privatization of land does not exist.

Cultural difference The Chinese consumption habits differ from the American consumption in various respects. Various Chinese cultures have their unique consumption habits that explain the differences in their taste preference. McDonald’s Corporation operates a few stores in China as compared to Kentucky Fried Chicken. This is factual because the company tailors its products to fit the local taste as dictated by the local cultural beliefs. The reengineered strategy by Kentucky Fried Chicken is a product of several researches that have also motivated McDonald’s to come up with products that fit the local needs of the Chinese market and to appreciate the consumer habits of the Chinese people.

High labor cost and food price inflation

The Chines government’s decisions on the labor and the one-child policy have caused a decline in the labor pool. The increasing labor costs have ultimately raised the cost of living. The price of food has increased and affected the fast food chain in China. The high global commodity prices have broadened the inflation rate and threatened economic growth.

Basic Trends and Uncertainty

These are the factors that McDonald’s considered when examining China as an appropriate location for starting its business. These are also the appropriate approaches for highlighting the general business environment to help in managing the coming opportunities and threats. The potential changes in the environment are determined through analyzing the economic, environmental, political and regulatory, cultural, social conditions as well as technological issues to ensure that the business operates effectively. These trends are analyzed below in detail in relation to the Chinese market.

Economic

The growth of the economy in any environment or country has significant ramifications on the activities of small marketing enterprises (SMEs). The exchange rate, employment levels, banking policies, interest rates, inflation rates, Gross net product (GNP) trends, Gross domestic product (GDP) per head, fiscal and monetary policies, availability of raw materials and energy are some of the factors considered in economy analysis. The growth trend of GDP per capita of China in the 19th century provided a concord GNP indicator and highlighted that the country had sustained a continuous rapid growth in terms of GDP per person. This gives an indication that each person in the country is creating more value to the society leading in the high purchasing power of customers (Mathews & Lü, 2001).

Sometimes businesses are slowed down by economic development trends like higher prices of property and high rates of inflation though the situation of the economy seems to be good. Recent news of businesses in the Chinese market show that consumer price index went up by 6.1 percent from a percentage of 6.5. Food prices rose up by more than 13 percent; this is the most sensitive part in the government’s budget. The overall economy in the Chinese market with respect to McDonald’s restaurant has slowed down for three successive quarters but McDonald’s in Beijing have endeavored to reduce inflation and slow growth.

The interest rates have been increased for last five years by the people’s Bank of China and the Central Bank of China (BERGSTROM, 2012). The reserve requirement for commercial banks has increased nine times hence banks have reduced the lending limits on basic needs like food to control consumer and property prices. Turbulence in the economy is very significant since it can affect the shift of demands of segments in the Chinese market. For example, the world’s economy was recently shaken by forces emerging from citizens having less disposable income, issues with credit crunch, less gross demand of products and wild unemployment in nearly all the major economies.

High interest rates and inflations have also affected the major geographic markets of McDonald’s hence leading to decreased sales and increased costs of running the business. McDonald’s and many other businesses experience the aftershocks caused by a lagging economy. Reasonable prices of McDonald’s menu ad a wide range of foods have been adopted following the appreciation of the fact that economic turbulence are ever enduring (DAVIS, 2000).

Political

Legal issues, formal and informal rules which govern the company and government regulations are part of the political conditions in the Chinese business environment. Research shows that political conditions are the most turbulent forces in any business environment. The Chinese government has attached great significance in the past one decade focusing on the development of e-commerce. These steps that promote e-commerce include the summaries of the Middle/Long term Science and Technology Development Plans of government of China, the growth of the Development of Information Industry Plans in the Eleventh Five-year and Long term Plan in vision 2020 in the ministry of information industry.

The Chinese legal structure for e-commerce is in its promising phase in terms of the legal structure governing the Chinese people (DAVIS, 2000). However, the system has been experiencing some problems in its current stage. There is no sufficient knowledge in the Chinese government for drafting issue pertaining to e-commerce legislation like rights to intellectual property, security in transactions carried out in the country, protection of property and taxation of products in the country. All these laws help the government to earn some income from the transactions taken by the business people internationally and locally.

The Chinese government is drafting some laws supporting the critical areas like the rights of consumers, privacy in business sector and acknowledgment of digital signatures and validation of contracts in the electronic world. The Chinese legal system is developing slowly to meet the demands of the e-commerce sector (REES & POLLACK, 2004). McDonald’s is therefore, compelled to adjust its operations due to the Political shifts in China.

McDonald’s is developing ways to ensure that political changes in China will not directly affects its business in future, but it will remain stable in the midst of any political storm. This has been made effective by having partnership with Sinopec, which is the largest oil operator in China. The rapid growth of the Chinese population has really encouraged McDonald’s to open more restaurants in the country (DAVIS, 2000).

Social

The society needs to be analyzed keenly to understand the cultural and social environment in the world of business. Changes in demographics like movements, age distribution and population growth are significant because they have some effects on the cultural values and changes in social trends such as social behaviors and growth of the family (REES & POLLACK, 2004). Several other social factors that abound include environmental issues, immigration/emigrants, consumer lifestyles, religion, demography and education. As the Chinese economy grows, the growing population will require the use of the internet that McDonald’s has capitalized on to promote its sales.

China’s online shopping had a turnover of $80billion in 2010 and this is growing year in year out. 420 million Internet users in China spend approximately a billion, dollars every day on internet use, and around 15 million did purchase of goods online. Since the purchase of goods online is effective the Boston Consulting Group is predicting an increase of such by the year 2020. This will be easy because the e-commerce has changed the thought of consumers of goods in China about shopping online.

People are being warned about online, shopping since it has cheating and fake goods and this is a draw back to business world although the genuine business men try to ensure that the online products are quality. The Chinese business requires face to face transactions in order to build trust to the consumer, which is related to Hofstede’s notion of individualism-collectivism.

 Technology

Factors influencing technology include new mechanisms of purchasing, development of new products, new working methods, new mechanisms of distribution and new production technology. The largest technological problem affecting the development of the Chinese B2C industry is the lack of secure and stable online payment systems. According to research, the online payment system is affected by the Chinese consumer’s favorite for high Uncertainty Avoidance Index (UAI

Corporation as a Pathological Institution

Corporation as a Pathological Institution

Author

Institution

Introduction

Social responsibility has been one of the most controversial topics in the modern society. It underlines an ethical theory that any entity, whether it is an individual or organization, has a duty and responsibility of acting for the benefit of the society at large. This duty aims at maintaining a balance between the ecosystem and the economy (Brubaker, 1995). In most cases, however, social responsibility is examined within the confines of corporations, where they are required to embrace and pursue its social responsibilities rather that solely focusing on profit maximization. This notion would undoubtedly result in the creation of businesses that have a positive relationship with the community or society within which they carry out their operations (Brubaker, 1995). Needless to say, there exists a tradeoff between the economic development or pursuits of an organization in terms of material gain and the environmental or societal welfare. It is worth noting that social responsibility revolves around the sustenance of a clear balance or equilibrium between these two aspects (Maxwell et al, 2000). Business entities may undertake passive social responsibility where they desist from engaging in activities that are socially harmful, or undertake active social responsibility through carrying out activities that have a direct effect on the advancement of social goals (Brubaker, 1995). Business entities in the contemporary human society have the fundamental or primary aim of maximizing profits. This may be done through reduction of the costs of operation of increasing their sales (Maxwell et al, 2000). In most cases, business entities resort to the former option, where they resort to reducing the cost of operations through shortcuts. It is worth noting that most of these shortcuts are detrimental to the society. Pursuing of economic growth usually involves neglecting social responsibility (Maxwell et al, 2000). This explains why organizations in the contemporary society have been finding ways of going round the laid out legal structures in an effort to maximize their income or profitability at the expense of social responsibility or the environment and the society at large. This is the main theme in Joel Bakan’s book “The Corporation: The Pathological Pursuit of Profit and Power”.

According to Bakan, corporations are established to make money or profits irrespective of the results affecting their own industry, world, managers or even labor force. This means that corporations are psychopathic, having acquired rights that were previously the preserve of human beings. As pathological or psychopathic institutions, corporations are known to knowingly and deliberately undertake actions that are destructive without any regard to their victims. Bakan determines that these legal constructs and economic institutions are fundamentally and essentially unbalanced with their existence being exclusively aimed at preserving their self-interests irrespective of the consequences of their activities. Bakan notes that these legal constructs were previously not so pervasive, influential or crucial. They previously only subscribed to proprietorships and partnerships, with the partners or owners being liable for any harmful activities pertaining to the companies, be they financial losses or even destructive tendencies to other individuals. This, however, has changed through enhancement of corporate power, in which case corporations manipulate the moderation controls of the government resulting in a reduction in the regulations that constrain their actions. In addition, they have been at the forefront in encouraging the incorporation of free-market answer to every problem that crops up. Bakan notes that the creation of a corporation was predicated on the notion of limited liability, all in an effort to protect investors especially from the middle class. The main reason for its popularity was that it allowed the investors to escape the failures of their companies unscathed, something that undermined personal moral responsibility that had for centuries been prevalent in the commercial world. The limited liability with which corporations came allowed investors to be recklessly unconcerned about the fortunes of their companies. In essence, the surrender of governments to public relations juggernauts and lobbyists has unleashed psychopathic tendencies and behaviors of corporations, something that would eventually hurt them.

Bakan starts his analysis of the corporation in the 18th century England. He brings an analysis of South Sea Company and how it started selling stocks hand over fist. These stocks were sold for a shady or unclear trading proposition in countries that had no likelihood of granting trading rights. The sale was done with company directors that had little knowledge pertaining to the countries where the trading was to be undertaken, and with whom the company had not established any contacts (Galiani et al, 2005). It, therefore, came as no surprise that the company surprised thereby destroying homes, families and lives. This resulted in the enactment of the Bubble Act, which criminalized the creation of a company or entity that took the form of a corporation or that issued transferable stocks devoid of legal authority.

However, this changed with industrialization which necessitated capital investments for enormous enterprises leading to the repealing of the Bubble Act. In essence, government control was lessened so as to enhance corporate growth. This was complemented with limited shareholder liability, as well as relaxation of constraints imposed on acquisitions and mergers all in an effort to encourage mass investment (Cespa & Giancinta, 2007). The resultant corporations were not products of government grants anymore, rather they were independent and free beings. The only difference between corporations and human beings is that corporations were entities representing accumulated, organized capital, unlike human beings who mainly represented personal capital (Cespa & Giancinta, 2007).

The corporation, however, has all the rights of a human being. This, combined with its nature as a pooled wealth, gave it powers of socialized means of production, in which case it rose above any other form of labor and capital. In addition, its operations were only geared towards benefiting its managers and shareholders. The power of collective capital over individual or personal capital is confirmed through assigning the rights of private property to collective or combined private property.

Bakan outlines the fact that in the first few decades of the 20th century, the United States government had an immense role to play in shaping the independent and free corporate entities emerging at that time. Some corporations were immensely concerned about their customers. Bakan, for example, examines Henry Ford who, at one time, decided to cancel the dividends of shareholders through reduction of the prices so as to divert the money to the consumers. However, his generous techniques were challenged by John Dodge who had earmarked the dividends for starting a business of his own (Galiani et al, 2005). He, therefore, took Ford to court after the later cancelled the dividend. The judge affirmed Dodge’s claims stating that irrespective of the goodness of his intentions, he had no right to divert such money to customers. This marked the beginning of a culture where corporations were required by law to act in the profit of shareholders’ best interests rather than for the general good. In essence, corporate investment on human rights, welfare, human health and environment was seen as illegal if it was not for the best financial interests of the shareholders (Cespa & Giancinta, 2007).

On the same note, he states that the United States courted big corporations in an effort to optimize on the profits with which they came. Soon other nations followed suit competing with each other and seeking the influx of capital investment and jobs with which corporate growth comes. This resulted in the introduction of the GATT (General Agreement on Tariffs and Trade) in 1948 and WTO (World Trade Organization) in 1993, thanks to competition in international business. These trade agreements and organizations resulted in the relaxation and removal of business regulations across borders so as to expedite, as well as attract international business. Eventually, corporations whose responsibility only rested on their shareholders rather than the general welfare carried their disregard for public welfare and safety to the global stage.

While underlining the growth of the corporations, Bakan examines the change in the power structure between the state or government and the corporations. Initially, governments were in control of corporations. This, however, has changed over the years, with the growth of corporate powers. The growth and international expansion of corporate power in the 80s and 90s resulted in the evolution of varied institutions at the international level that significantly eroded the nation state’s powers. He draws the example of the World Trade Organization (WTO), which he states has evolved into a corporate influenced, secretive, as well as powerful overseer of the mandate of the government to protect the environment and citizens from corporate harms. Bakan stresses the fact that over its considerably short life, the World Trade Organization has evolved into a considerable fetter on the capacity of nations to defend their citizens against misdeeds of corporations. He further stresses the point that corporate are now governing the society even more than elected and democratic governments do this underlines a situation where democracy has been thwarted with governments, which are the representatives and protectors of their citizens, being relegated to a subordinate level to the corporations demands (Bakan, 2004).

In examining the corporation as an externalizing machine that wrecks havoc at the environment, health and income of individuals with impunity, Bakan brings in the notion of corporations utilizing cost-benefit analysis in making decisions pertaining to the safety measures that they have to take. Their psychopathic nature means that they are singularly self-interested, bearing no capacity to have any genuine concern for other entities in any context. In its psychopathic personality, corporations are programmed in such a way that they exploit other entities for profit (Bakan, 2004). They come with a built-in compulsion or impulse to externalize costs, thereby dissipating any concern pertaining to human safety or the environment in instances where they face their common denominator, which is profit. In this regard, he cites the example of a lady who had another car slamming into her 1979 Chevrolet Malibu as she stopped at a red light (Bakan, 2004). This resulted in the explosion of her fuel tank with the car being engulfed in a fire that burnt her children. In essence, she resorted to a legal battle with General Motors claiming that they had exhibited negligence in designing the fuel tank as it had been too close to the rear bumper with no appropriate brace separating it from the rear. However, General Motors, through its engineer, stated that the maintenance of the current fuel tank was considerably less costly than coming up with a tank that could not explode (Bakan, 2004). The company calculated the cost pertaining to paying off the victims and compared it to the cost that would be incurred in improving the design, a comparison that showed that the later was cheaper than the former (Bakan, 2004). It was considerably less costly to pay off the deceased’s families in lawsuits than making improvements to protect human life through placing the gas tanks at a safer place.

This was the same case for General Electric, which prefers to finance clean-ups and pay fines in instances where it is caught flaunting the environmental laws instead of complying with public health and environmental requirements. He comes up with a list of apparent infringements by the General Electric in 20th Century’s last decade. These infringements include weighty issues such as illegal oversea sale of weapons, severe and repeated defilement of waterways and land, as well as responsibility for airline disasters. He uses these examples to underline the fact that for corporations like these, compliance with the rule of law has to be evaluated through the lens of costs and benefits. More often than not, shareholders gain more profits through risking human life through engaging in fraud, defiling lakes and streams, rather than complying with the laws.

However, as much as Bakan raises pertinent issues pertaining to the responsibilities of corporations, it is worth noting that his examination of “Corporations” is a bit warped. This term is not used broadly to discuss all the legally incorporated business entities, which would, in fact, include NGOs, small businesses, philanthropic entities, non-profit entities, as well as state-owned enterprises. Instead, he uses the term only with reference to large Anglo-American publicly traded businesses (Bakan, 2004). Questions arise as to the reason for his exclusion of these entities. In his arguments, he singled out these corporations calling them institutionally psychopathic and underlining suffering of infirmity as they have the sole mandate of being self-interested. However, questions arise as to whether small businesses are any less self-interested and greedy than the large ones. In fact, he does not consider the fact that every person and entity is self-interested including the middle class propagandists. The only difference between these large Anglo-American publicly traded corporations is the fact that they make up the fundamental engines of growth, not to mention the fact that they make up the foci of technological and social change, as well as the key driving force behind modernity and internationalism.

On the same note, it is imperative that one examines the composition of these corporations. As Bakan acknowledges, the ownership of their shares is broadly spread to the public (Bakan, 2004). Bakan loathes the fact that the common people have become shareholders in large corporations. It is noteworthy that a large number of the corporations are under the ownership of widely-held mutual funds, small investors, as well as pension funds from workers. In essence, these corporations are owned by common individuals as they are genuinely companies of janitors, managers, workers and engineers. This means that the workers, in their tens of millions, would to stand to lose the most in case the taxes and regulations stifle profitability and development in these enterprises. On the same note, the profitability of the corporations is founded on the actions of millions of the customers, who by their own regard purchase the items on sale from the corporations.

In addition, as much as the book presents the two sides of the argument pertaining to the appropriateness of a limited liability corporation as a form or type of business association, Bakan tries to sway the reader to the view or perspective that limited liability, as well as separation of control and ownership gives the corporation the green light to operate without accountability and with impunity. On the same note, he seems to imply that the existence of limited liability corporations is predicated on the existence of the state, without which they cannot exist. In addition, he underlines the notion that contemporary limited liability prompted the rise of the modern corporation to prominence (Galiani et al, 2005). Of course, it is extremely true that the corporation would not exist in the absence of a state, just as is the case that statutory laws would be nonexistent without the state. However, it would be improper to create the notion that there would be lawlessness in case the state was not there, especially considering the fact that there have been numerous episodes in history where order and peace prevailed in spite of the inexistence of strong authority (Galiani et al, 2005). This makes the notion that the corporation would not exists without a statutory grant suspicious. Of course, there exists no way of ascertaining whether corporations, in their contemporary nature, would exist. However, it is worth noting that alternative forms would undoubtedly exist just as they have existed throughout the history. Corporations come with two fundamental characteristics or features. They have limited liability and are separate entities that have the capacity to operate or carry out their duties separately from their shareholders (Khanna, 2004). As much as limited liability may be seen as having been granted by the state, liability has practically always been limited by the shareholders’ wealth. Scholars note that bankruptcy laws, regardless of their draconian nature, cannot take more than the debtors’ existing assets. In addition, laws pertaining to partnerships that have been in existence right from the ancient times, as well as the law of trusts whose existence can be traced back to the Anglo-American system of 16th century underlined the notion that there would be entities that operate or carry out their activities with a personality that is separate from that of their owners (Khanna, 2004).

In addition, Bakan uses the varied examples to not only point out the pursuit of self interest among corporations, but also to underline the notion that a corporation’s profitability has an inverse relationship with its corporate social responsibility (Bakan, 2004). This is why corporations must sacrifice the environment, human health and other aspects if they have to attain some element of profitability. However, this is not necessarily the case especially considering that research has shown that corporate social responsibility has a positive impact on the profitability of a corporation (Khanna, 2004). In fact, scholars state that there is a mutual or symbiotic relationship between the profitability of a corporation and its corporate social responsibility. While the socially responsible activities of a corporation would endear itself to the people thereby increasing its profitability, the profitability would enhance its sustainability in the long-term and allow it to finance, sponsor or take part in socially responsible activities.

References

Bakan, J. (2004). The corporation: The pathological pursuit of profit and power. New York: Free Press.

Brubaker, E (1995). Property Rights in the Defense of Nature. Toronto: Earthscan Publications Limited

Cespa, G & Giancinta, C. (2007). Corporate Social Responsibility and Managerial Entrenchment. Journal of Economics & Management Strategy. 16: 741- 771.

Galiani, S., Gertler, P.J & Schargrodsky, E (2005). Water for Life: The Impact of the Privatization of Water Services on Child Mortality. Journal of Political Economy 83.

Khanna, V.S (2004). Politics and Corporate Crime Legislation. Regulation 30.

Maxwell, John W., Thomas P. L., & Steven C. H. (2000). “Self -Regulation and Social Welfare: The Political Economy of Corporate Environmentalism. Journal of Law and Economics . 43: 583-618.

CORRECTION UNIT 3, inmates working under various fields

CORRECTION UNIT 3, inmates working under various fields

Name

Institution

Several private industries provide employment for inmates who are still in incarceration. Various correctional institutions have an arrangement with private establishments to offer job opportunities to inmates with the aim of assisting them to reform. Indeed, this is a risky job but there are pros associated with such opportunities. Such jobs are community related works that may include clearing of bushes, painting public places such as schools, and making general repairs within public areas.

One of the pros associated with inmates working under various fields is that the offenders are able to earn on an hourly basis. In turn, this provides the inmates a legit source of money to cater for their needs. Inmates are expected to meet their financial obligations such as court-ordered fines and child support. Subsequently, having a job is a vital source of funds to sustain these needs. Other than the money, inmates are also able to source practical skills within the various places of work. In turn, the inmates are able to utilize these skills upon their release from prison. Additionally, providing the inmates with work offers them a chance to redeem themselves and have a feeling of appreciation and belonging (Skapinker, 2012).

Employing prisoners has key advantages, but at the same time has demerits. Some people feel that employing prisoners and paying them wages similar to the payments made to honest people that are not in incarceration is unfair. Additionally, cases may occur whereby the prisoners extend their hideous acts to the places of work, for example, stealing. Nonetheless, these programs have proven to work and provided chances for prisoners to reform. The Work In Lieu of Jail Program is an example of a program under implementation in Washington County (Sherriff’s office Washington County, N.D.). This is a successful weekend program that provides prisoners with a meaningful way of spending the weekend. In addition, the program has been a success because of the funds contributed towards its course from the inmates’ earnings.

References

Sherriff’s office Washington County, (n.d.). Inmate Work Programs. Retrieved on April 9 2013 from >http://www.co.washington.or.us/Sheriff/Jail/JailPrograms/inmate-work-programs.cfm<

Skapinker, M., (2012). The pros and cons of employing prisoners. Financial Times. Retrieved on April 9 2013 from >http://www.ft.com/cms/s/0/507ec196-fbf9-11e1-aef9-00144feabdc0.html#axzz2PxOTA0ap<

Correctional Casework and Counseling

Correctional Casework and Counseling

Name:

Institution:

Correctional Casework and Counseling

After a long life in prison it becomes difficult to adjust to the normal ways of the society or simply to just fit in. due to the challenges that inmates face after prison, it has become essential over the years to embrace the need for correctional casework and counseling. However, even with the excessive casework and counseling after prison, inmates or prisoners still faces a hard time enjoying all the opportunities that are ready available in the society. Some of these privileges that can be denied to people after they have been regarded as criminals or inmates are; inaccessibility of some basic needs such as health care, employment opportunities and lack of social life. Therefore, I strongly support that casework and counseling should also include the right to treatment just like that they used to enjoy while still in custody.

The right to treatment dictates that every person has the right to accept or refuse treatment that is offered. It also goes further to indicate that one is not bound to accept any physical or mental examination. Medical practitioners are also required to inform any patient about their medical treatment, a valid consent is also highly recognized legally. The act that supports this right: Treatment order under section of Health Act 1984 goes further to state that all persons have the right to receive quality and health care. To ensure all persons is able to receive quality health care, they also have to have preferences as patients as well as have the families or a third persons care as stated in the NHS guidelines.

After a long time in custody, inmates may not have the ability to enjoy all the privileges that come with the right to treatment right. Therefore, there is need to assist them by making it possible for them to have this right by providing free health care and necessary correctional counseling similar to prisoners. The need to provide them with the right to treatment is also necessary because they also do have challenges of housing, employment and even proper nutrition.

Reference

Hasner, R. D., Mire, S. M., & Braddock, A. (2011). Correctional counseling. Upper SaddleRiver, NJ: Prentice Hall

Correctional officers eligibility criteria

Correctional officers’ eligibility criteria

Name

Institution

Correctional officers’ eligibility criteria

There are strict rules in the hiring of correctional officers both in federal and state prisons; the main reason of these is based on the fact that the working conditions of the officers are quite stressful and hazardous. In addition, the correction officers have a law enforcement responsibility outside the institutions they are working for. Due to the difference in level of working conditions and responsibility of correctional officers in federal prisons there is a higher hiring age limit of 22 to 37while that of the state prison is 18 to 37. Though the two types of correction officers retire at the same time, at the age of 57, the law is quite strict on the entry age (Common wealth of Virginia).

The main reason behind the difference in the hiring age of the correctional officers is brought about by the additional responsibilities of federal prison officers. Federal prisons are in most cases managed by the government and quite congested. They also act as the sole mentor for the prisoners as well as assist in rehabilitation and maintaining jail security. It is essential to maintain age limits but I strongly feel that setting the age limits to 2 or 18 for correctional guards is quite low. This is because all the correctional guards or officers require sufficient amount of knowledge and skill to effectively perform their duties and the ages of below 23 cannot have these sufficient skills. The officers should be at least 25 to ensure that they hold basic high school education as well as have enough time dealing for after school responsibilities such as independence, responsibility, tolerance and so on (Joad, 2013). Before practicing as correctional officers, there should be enough time for training on criminal laws, security issues and rehabilitation and all these cannot be sufficiently attained at the age of 22.

Rather than the age qualification to qualify for the position they must also hold a bachelors degree for a recognized college with a specialization on a Criminal justice related course. However, most institutions also accept a Bachelors degree on any concentration from a credited college if the person also has at least two years experience in a related field.

Response to Discussion boards

I do support Tamara Douglass argument that correctional officers should be bid by higher age limits especially if they are to perform in federal prisons. It is true that at the age of 18, they cannot have gained the necessary expertise required for the position. However, I do not agree that at the age of 20 the correctional officer is set to take up the duties fully. At the age of 20 the correctional officer should still work under the supervision or assistance of a senior officer in the prison corridors. A 20 year old officer cannot be effective in acting as a sole mentor to the hundreds of prisoners in the prisons today as well as have the ability to monitor all security concerns in the prison.

The post by John Coleman is quite brief but factual. I do appreciate his argument that correctional officers are the sole mentors in the prisons and therefore they should have sufficient training, knowledge and skills before taking up the job. Though Coleman exaggerates that they can only gained the required skills at a minimum age of 27, his arguments are quite realistic and applicable to both federal and state prisons.

References

Common wealth of Virginia. Retrieved from:https://jobs.agencies.virginia.gov/applicants/jsp/shared/position/JobDetails_css.jsp

Davenport, D. (2001). State of Arizona Office of the Auditor General Performance Audit:Arizona Department of Corrections. Sunset Factors

Tracy, S. J. (2004). The construction of correctional officers: Layers of emotionality behind bars.Qualitative Inquiry

Joad, G. (2013) The health care crisis in the US Prison System: International Committee of theFourth International. Retrieved from HYPERLINK “https://www.wsws.org/en/articles/2013/02/20/prisf20.html” https://www.wsws.org/en/articles/2013/02/20/prisf20.html

Statewide Human Resource Management. (2012) State of Connecticut Correction OfficerSelection Process. Statewide The Department of Administrative Services

CORRECTIONAL SERVICE OF CANADA

CORRECTIONAL SERVICE OF CANADA

Name:

Institution:

Course:

Tutor:

Date:

Abstract

The Ashley case turned out to be an outspoken case on inhumane treatment of Canadian mental case inmates after she committed suicide in one of the confinements in attempts to attract attention to the institution’s management. She threw a crab to a mails courier while at 14 years of age and was imprisoned for five years with multiple relocation of charges, which saw her serve her sentences at different institutions in the country.

Discussion

The investigation into the case revealed that in the five years of her imprisonment, she suffered multiple violations to human rights, which included physical abuse, forced medical injections, having duct tape, hooded as well as physical harassment through being sprayed with pepper. As Moore reports, Ashley chocked to death while in prison after the seniors instructed the wardens on duty not to help her. Nevertheless, when investigations commenced on the cause of the inmate’s death, the report shows how the institution avoided accepting the facts of its negligence in handling inmates and this reveals the inhuman spirit dominating the penal system in Canada. The influence of the system comes in even during investigations where initial efforts to investigate the matter are halted prematurely on arguments of controversies and interference. The lawyers of the institutions in many instances motioned the blocking of exhibits presented before the court revealing Ashley speaking. However, this case is not in isolation as the recent past has seen a number of such cases being investigated in the country. This was confirmed by a report by Mr Saper who pointed out to grievous inadequacies over the entire penal system dealing with mental health cases of inmates. He argues that the systems cultivate lawlessness as well as disregard to rights of inmates. For instance, Julie Bilotta is said to have given birth in 2002 in a prison after the prison wardens failed to heed to her call on labor. This in brief reveals how corrupt the system of justice in Canada perpetrates violations to human rights under the coverage of purporting to instill justice and corrective measures within the nation (Moore, 2013).

The mental health functioning in the Canadian prisons is poorly acknowledged as shown by the physical conditions in which the inmates are confined. For instance, deprivation of necessities, isolation from fellow inmates as well as the physical separation from close relations and family are not appropriate conditions to have the mentally ill inmates subjected to. Besides, the prison facilities are often overcrowded, stressful, violent, unpredictable, restrictive and in instances very noisy, conditions that would worsen the cases of mental illnesses for the inmates. Moreover, some of the facilities are reportedly out of service and fails to have appropriate facilities to respond in therapy of such mental cases. It is also shown from the case of Ashley that the prison staff, who are expected to be professional fail in delivery of service to the inmates and create about conflicts of interest. Such conflicting objectives create dilemmas such as treatment versus security, patients versus inmates, control versus assistance as well as hospital versus prison, which are all basic tenets to be taken care of for the sake of effectiveness in handling inmates for correctional purposes (Sapers, 2011).

The foregoing discussion shows inadequacies with the CSC (Correctional Service of Canada) to handle the ever-increasing cases of mentally ill inmates confined within the state’s prison facilities. Through the system shows increased efforts towards reforming the correctional service in Canada, the cases shown above reveals high need to have the reforms for effectiveness and efficiency. Besides, reports show increased number of such cases of suicide of inmates with mental illnesses in the recent past (Perkel, 2013). For instance, the case of Ashley as have been in discussions over a long period shows that there are conflicts of interests between the management and the service delivery towards inmates. Ashley’s death occurred amidst her appeals for help from the prison wardens but who had received an instruction not to attend to her. It should be understood that responding to mental illness needs for inmates is a technical process, which requires special skills and physical facilities. Julie Bilotta’s case shows that the system fails to have appropriate mechanisms to attend to such emergencies, which are expected within confinements of inmates. The wardens on duty overlooked Bilotta’s calls on labor and this shows the increased conflict of interest between human rights as well as corrective systems. It is the responsibility of the prison system to ensure safety and security to inmates, regardless of their physical conditions. Security and safety in this case implies shield against physical torture or mistreatment by the authorities in the prison as well as assurance on matters of health and good living conditions. This insinuates the incorporation of human rights in corrective system in Canada as represented by CSC (Correctional Service of Canada) is poor and as such would need to be addressed. Besides, prisoners are equal human beings and are therefore entitled to such rights as security, food, housing, health, legal aid/representation as well as rights to interactions with other people (though to some restrictions as deemed right by authorities) (“Prisoner’s Rights”,nd).

Women form the most misunderstood and neglected segment in systems of justice and according to the relational psychology as applied in psychologists, women’s offending behavior may result from violations of their rights (Covington, 1998). The case of Ashley’s death reveals offending behavior by the inmate towards the warden, which would be explained through the rational. This therefore is evidence that the CSC has not taken the rational into account while handling the women inmates especially the mentally ill ones.

Recommendations

Effective management of social vices from mental illnesses requires early detection and intervention through such means as medical care right from the society and not necessarily through incarceration. Nevertheless, the inter-sectoral disciplinary agencies and organizations within the justice system need a national strategy, which would coordinate such efforts towards confinement of mentally ill inmates. The strategy would ensure integrity in coordination as well as integration of services accorded to such inmates. The country needs to address such issues that result to stress and in the event raises levels of vulnerability of persons to criminal justice system. This means that a national system to address cases of vulnerability such as drugs and substance use, social marginalization and exclusion among other factors is necessary to aid in management of prison and such correction facilities in the nation.

References

Covington S. S., (1998). Women in Prison: Approaches in the Treatment of Our Most Invisible Population. Women and Therapy Journal, 21(1): 141-155

Moore D., (2013). Ashley Smith case: Time to end ‘the ugly spirit of our penal system’ Retrieved from http://www.theglobeandmail.com/globe-debate/ashley-smith-case-time-to-end-the-ugly-spirit-of-our-penal-system/article7354170/

“Prisoner’s Rights”,(nd). Prisoner’s Rights. Retrieved from HYPERLINK “http://nolegalfrontiers.org/general-information/prisoners-rights?lang=en” http://nolegalfrontiers.org/general-information/prisoners-rights?lang=en

Perkel C., (2013). Ashley Smith inquest: Gaps persist in managing mentally ill prisoners. Retrieved from HYPERLINK “http://www.ctvnews.ca/canada/ashley-smith-inquest-gaps-persist-in-managing-mentally-ill-prisoners-1.1499019” http://www.ctvnews.ca/canada/ashley-smith-inquest-gaps-persist-in-managing-mentally-ill-prisoners-1.1499019

Sapers H., (2011). Mental Health and Corrections. . Retrieved from http://www.oci-bec.gc.ca/cnt/comm/pdf/presentations/presentations20120318-eng.pdf

Corrections Past and Present

Corrections: Past and Present

Name

Institution

Corrections: Past and Present

Punishment in the form of prison sentences, form an integral part of the current United States justice system. The previous system within which the prisons were used to house individuals unable to pay fines, or awaiting trial, if it had been allowed to exist to date, would no doubt have led to a situation in which there was not only overcrowding, but also numerous injustices to those accused of minor crimes (Fellner, 2006). Housing individuals even for very small crimes would serve to perpetuate the labeling theory and serve as an injustice a huge majority. More so considering that concepts such as innocent until proven guilty, which play an integral role in contemporary society would be massively abused, more so if those awaiting trial were held in the same place as those who have been tried and found guilty (Barnes, 1921). The prison system also provides an opportunity through which rehabilitation, and rehabilitative services can easily be offered. Sticking to the old system would not only have brought about a situation in which the prison systems were easily open to undue abuse and easily distorted the main reason behind the concept of denying an individual, or one found to be guilty their rights to freedom. Conversely, the existence of the current systems of incarceration serve two aspects of justice that the old system as it was, definitely would not accomplish: the prison sentences act as deterrents to future criminals, as well as serve to remove the dangerous criminal elements from society, and preventing any further participation in crimes, by the individuals identified to have been culprits (Langan & Levin, 2002). The system as currently exists, also provides an opportunity for the correctional approaches and any rehabilitation engagements to be applied uniformly to the incarcerated individuals.

References

Barnes, H. (1921). The Historical Origin of the Prison System in America. Journal of theAmerican Institute of Criminal Law and Criminology 12(1), 35-60.

Fellner, J. (2006, November 30). U.S. Addiction to Incarceration Puts 2.3 Million in Prison.Human Rights Watch. Retrieved from HYPERLINK “http://www.hrw.org/en/news/2006/11/30/us” http://www.hrw.org/en/news/2006/11/30/usaddiction-incarceration-puts-23-million-prison

Langan, A., & Levin, D., (2002). Recidivism of Prisoners Released in 1994. Bureau of JusticeStatistics.

Responses

Demond J. Lemieux

Demond raises valid arguments that the existence of prison sentences is the only sure way of ensuring justice. Indeed, although the prison sentences meted out to the criminals are usually in order to punish them for their wrongdoing, these sentences also usually serve as deterrents to any such future behavior. While it does follow the principle of retributive justice, it does fall in line with what the justice system mainly aims to accomplish, if due to anything; the simple fact that it removes the criminal elements from society preventing any further engagement in criminal activities as already stated above. Indeed Lemieux’s claim that some rehabilitative programs do not work is very valid, as a huge majority of such programs are hinged on the ability of the perpetrator to seize the initiative and genuinely want to change, a question that is more often than not unsuccessfully pursued.

Christine Morgan

Christine Morgan’s arguments are very succinct and aptly capture the importance of the prison system as it currently is. The current arrangement has served to eliminate the unnecessary use of excessive punishments such as the death penalty, and made punishment proportionate to crimes committed. Morgan also highlights the important role of deterrence that the system plays, not to mention the level of retribution it offers, especially to those who are affected by the crimes committed. She also seems to agree with the main concept of incapacitation, in the sense that prison terms as they currently exist, deny perpetrators the opportunity to commit further similar crimes, as would otherwise be possible in the past, following the payment of fines as would previously be required by law. I therefore, agree with a majority of the arguments posted by Christine Morgan.

Corrections Trend Evaluation

Corrections Trend Evaluation

Name

Institution

Corrections Trend Evaluation

Introduction

Correctional facilities have been part of the judicial system in many countries for a long time. Their continued existence is a product of the important functions the play in the judicial system. These includes ways that have been defined in law for dealing with criminals and offenders as retribution for their actions and to enable rehabilitation so that they are fit for integration back into the community by the end of the recommended period. Correctional facilities are used in the rehabilitation of individuals who have been caught and tried for breaking a law. The main aim of correctional facilities is to protect the members of the public from dangerous and potentially dangerous criminals who are a menace to the society. It then deals with the offenders to prepare them from re-entry into the society once they have served their time. Institutional corrections facilities are prisons where offenders and criminals are sent, away from the community, for incarceration so as to correct their behavior. They ensure the offenders cannot harm the community by putting them away, usually for the duration of their sentence or until they get paroled, when they are allowed back if they have demonstrated change from their previous behavior. Community based corrections are as a result of these and involve the rehabilitation of the offender within the society. They include options such as probation, community service and fines. In this system, it is hoped that the dominant values express concern for the victim, offender, community and agency (Sieh, 2006). The society has a crucial role to play in the successful and complete rehabilitation of an offender and their eventual integration into the society. This paper seeks to identify the evolution of institutional and community based corrections including expected future trends, as well as issues facing them. Alternate correction systems are also considered as they are an essential aspect of future correctional system that should be integrated in the judicial system.

Institutional and Community based Corrections

The concept of using institutions such as jails and prisons as correctional facilities for offenders became popular in the nineteenth century. Societies, both past and present, that are viewed as barbarous typically maintain inhumane prisons in which inmates have few civil rights (Whitehead, Dodson & Edwards, 2012). During the early times, the main use of these facilities was to detain and control individuals who were disturbing peace. Cells were used to accommodate those detained. However, the needs of the detainee were not taken care of while within the cell. The cells were not well taken care of, and those detained did not get proper care and food (Siegel, 2010). The detainees were released through pardon. During this period, the jails were indiscriminate, and men, women and children were all placed in the same jails. The conditions were still not up to par and those inhabiting these jails were not accorded proper care. As a result of these, there were constant pressures to improve the conditions in the jails and provide proper cells for offenders. An example is the Pennsylvania legislature in 1790 which called for the renovation of the prison system (Siegel, 2010). The result of the law was the rise of modern prisons and penitentiary that served the purpose of housing offenders and criminals. The initial prisons were used to contain prisoners in solitary cells and harsh punishment and silence were used to rehabilitate them. However, the current trend in prisons involves the use of physical and hard labor as part of the rehabilitation process as well as advocating for the rights of prisoners. Prisoners are involved in production of goods and working in the prisons at low wages. In addition, they incorporate information technology in the protection, supervision, time management and collection of biometric data from the prisoners (Siegel, 2010). They assist in easing the procedures and making them more accurate and efficient. Prisoners are housed under better conditions and provided with uniforms and other utilities that they require. Release of the prisoners is dependent on the duration of their sentence, parole and pardon. As the most popular correction system during the late 19th and 20th century, prisons have become quite overcrowded hence compromising their effectiveness in keeping prisoners safe and rehabilitating them.

The federal government and the state continuously experience exponential growth in the prison population yet resources are diminishing as a result creation of alternative form of punishment both prior to and after incarceration is becoming a necessity rather than an alternative (Bandy & Steen, 2007). To addressed the issues that have been brought about as a result of overcrowding in prisons such as reduced supervision as the ratio of prison wardens to prisoners is high, the has arisen a need to explore other correction options within the justice system. Community based corrections are a form of alternative correction systems that have become popular in the recent past. They provide lighter sentences for offenders who have not committed serious crimes under the supervision from officers in the justice system such as parole officers and police officers. Most of these are first time offenders or those who have been given parole from prison as a result of good behavior or other such attributes. Community based corrections come in the form of probations, halfway houses, community services, house arrest, day reporting centers and fines. These are the most common present day trends in community based corrections.

The current issues facing prisons include budget cuts, overcrowding and prisoners’ medical needs especially mental health. With the recent budget cuts for prisons, there are fewer funds for their management. This affects the conditions of the prisons as expenditure adjustments have to be made to accommodate the new budget allocations. As the prisons are already facing pressure concerning the conditions and civil rights of the prisoners, lower funds will make the situation worse. Overcrowding is also a substantial problem as it compromises the safety of the prisoners and the public as well due to the high numbers of prisoners. Prison administrators are not added as required when the number of prisoners increase and hence it is hard to control them and, therefore, more likely for incidents like prisoners escaping to occur. Another key issue is that of medical health among prisoners. In some cases, prisoners with mental issues are put in the same area as the rest of them thereby posing a risk to the prisoners. Mentally unstable prisoners are likely to commit heinous crimes even within the prison walls as they are not in full control of their actions. These issues are likely to continue into the future if not addressed thereby causing major problems within the community and prisons themselves. Prison administrators are also faced with many issues as a result of changes and conditions in the prisons. They include reduced training capacity when dealing with prisoners as well as high ratios of prisoners to prison wardens. It hinders them from effectively carrying out their work as they may not have the right training to deal with certain issues. Training on the current changes in the system and ensuring adequately trained officers are some of the ways in which the issue can be tackled within the prison system.

The use of alternate correctional systems within the judicial system has become a developing trend over the last few years. They include community based corrections that allow the rehabilitation of a prisoner outside the prison. This will contribute to the reduction in overcrowding in the prisons and provide an opportunity for behavioral reforms in individuals with the help of the community. Such alternate corrections will require the use of more supervisors in order to make sure that the affected persons adhere to the regulations set for their community based corrections. “Unemployment, broken families, lack of housing, alcohol and drug abuse, histories of psychological problems and mental illness, domestic violence are realities that are likely to be found in most offenders’ lives” (United Nations, 2006). When these are addressed, some individuals who have been led to commit crimes as a result of the above are likely to become law abiding community members. Alternative correction methods are some of the ways through which issues in prisons can be addressed.

Conclusion

Institutional based correction systems are closely being analyzed to determine whether they are the only adequate ways of dealing with offenders. Due to the current issues of overcrowding which have compromised the safety of the prisoners and the public in general, other alternative systems such as community based corrections are being explored as a way of dealing with offenders of less serious crimes. Community based corrections include half way houses, community service, rehabilitation centers and probations under the supervision of an officer to ensure no conditions set are violated. They allow the judicial system to relieve the pressure of prisons by only sending in those offenders who pose a threat to the community hence reducing overcrowding. More alternative corrections system should be explored to provide opportunities for effectively handling offenders within the judicial systems.

References

Bandy, Rachel & Steen, Sara (2007). When the Policy becomes the Problem: Criminal Justice in the New Millennium. Punishment & Society, 9(1), 5–26.

Siegel, L.J. (2010). Introduction to Criminal Justice. Belmont, C.A: Cengage Learning.

Sieh, E.W. (2006). Community Corrections and Human Dignity. Sudbury, M.A.: Jones & Bartlett Learning.

United Nations. Custodial and Non-custodial Measures: alternatives to Incarceration. Vienna: United Nations.

Whitehead, J.T., Dodson, K.D. & Edwards, B.D. (2012). Corrections: Exploring Crime, Punishment and Justice in America. Waltham, M.A.: Elsevier Inc.