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Case Study about Charles Well
Case Study about Charles Well
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Part 1- Value Chain Analysis
Michael Porter is the one of the first authors to use the term value- chain analysis in one of his books. Value chain analysis describes the activities an organization performs and links them with the competitive position of the organization. Value chain analysis describes all of the activities around and within an organization, and relates these activities to an analysis of the competitive strength of the firm. As it follows, this analysis evaluates which value each specific activity adds to the services and products of the organization. Economists developed this ideology upon the insight that a firm is more than a random combination of equipment, machinery, money and people. Only if organizations arrange these elements into, systematic activates and systems it will be feasible to create products and services for which the consumers will be willing to pay a certain price. Porter points out that the ability of a firm to perform certain activities and manage the associations between these activities is a competitive advantage source (Strategic management).
Porter distinguishes between support activities and primary activities. The primary activities distinguished by Porter are those, which are directly involved in the delivery or creation of a service or product. One can place these primary activities under five main groups. These are the inbound logistics, outbound logistics, operations, service, marketing and sales. Support activities are linked to each one of these primary activities, which help to enhance their efficiency and effectiveness. There are four different areas of support activities. These include technology development, procurement, human resource management and infrastructure. Under infrastructure are systems for finance, planning, information management, quality, and many more (Strategic management).
Value chain analysis is an essential tool for the organization to work out how they can create the greatest possible value for its customers. In business, consumers pay to take raw inputs, and to add and increase the value to them by changing them into something of greater value to other people. It is easier to see this in manufacturing, in which case the manufacturer increases value by taking raw material of little use to the final user and converting it to products or services that buyers are enthusiastic to give money for, like converting wood pulp into paper. However, this ideology is just as essential as in service industries, where individuals make use of inputs of knowledge, time, systems, and equipment to make services of actual worth to the customers. To analyze the specific activities through which organizations create competitive advantage, it is essential to model or to arrange the organization as a chain of activities that create value. As already mentioned, Michael Porter identified a set of interrelated generic activities ordinary to a broad range of businesses. The resulting model is the value chain (Strategic management).
Services
Organizations realize a profit depending on their ability to manage the associations between all the activities in the organization. This is to mean that an organization can only deliver products and services, which customers are willing to pay more than the total of the costs of the sum of activities in the value chain. These linkages are essential for corporate success. These linkages occur between the flows of goods and services, information and processes and systems for adjusting activities. As it follows, the linkages are about seamless information flow and cooperation between the activities in the present in the value chain. In most industries, it is unusual that a single organization is responsible for all activities from design of the product to production to final assembly of products to deliverance of complete merchandise and services to the ultimate consumer. In most cases, organizations are elements of a supply chain or a value system (Strategic management. The value chain).
Margin
Michael Porter introduced a generic chain model that is composed of a series of activities common to a wide variety of firms. Porter, therefore, came up with primary and support activities. The purpose of these activities is to offer consumers a degree of value that is more than the cost of the activities, therefore, resulting in a profit margin. The primary value activities include inbound logistics, operations, outbound logistics, sales, marketing, and service. In regards to the inbound logistics, the warehousing and receiving of raw materials and their distribution to manufacturers activities are required. Operations in this case refer to the processes of changing inputs into finished services and products. Outbound logistics, on the other hand, deals with the distribution and warehousing of finished goods. Sales and marketing is involved with the identification of the needs of customers and the generation of sales. Service in this case is concerned with the support of customers after the organization sells and distributes the services and products to consumers (Strategic management. The value chain).
The infrastructure of the organization supports the primary, which is composed of the organizational structure, company culture and control systems. Another activity that supports the main activities is the human resource management, which is composed of employee hiring, recruiting, training, compensation and development. Technology development is also another support activity, which includes such activities as integration of activities that support activities for creating value. Procurement is the last support activity that involves purchasing of inputs like supplies, materials, and equipment. The profit or margin of the firm, therefore, depends on it effectiveness in performing these activities effectively and efficiently, so that the amount that the consumer is willing to pay for the finished goods and services exceeds the cost of the production activities in the value chain (Strategic management. The value chain).
Part 2- Key Challenges Faced in Human Resource and Operations
Operational challenges are those challenges that include all of the step- to- step details which control how exactly various elements in the supply chain functions. One of the most common operational challenges is coming up with a manufacturing and production schedule that is well organized. A schedule for production affects numerous other variables and, therefore, must be designed carefully to fit appropriately into the whole picture. Other operational challenges and decisions include things like the process for planning daily activities and filling orders with all the activities involved in the supply chain. The shrinking world gives organizations numerous opportunities and benefits for business, but these are not without extending the scope of the organization’s logistic responsibilities. The days for depending on brokers to finish their end of the bargain managing a single facility are gone. Now organizations must act proactively in their efforts to put together the best possible circumstances for operations that are successful. This means addressing all of the issues and challenges that come with a supply chain that has numerous elements scattered all over the place (How a shrinking world).
Charles Wells Ltd has for a long time combined years of pub retailing and brewing with genuine spirit of enterprise and innovation. The organization has evolved to become an essential market leader in both industries and many have recognized the organization for its assimilation of change to remain competitive, yet retaining independence, by both consumers and trade alike. However, despite its success, numerous challenges, and especially those that have to do with operations have affected its excellence and competitive advantage. Other minor challenges with regards to human resource have also affected the effectiveness of the company in the market (About Charles Wells).
One of the main operational challenges that the Charles Wells has to do with the marketing and sales force of the company. The national sales force of Charles Wells Company has been selling services and products into the purchasing departments of a number of customers like major wholesalers and grocery stores. With this operational activity, a challenge arose. The challenge concerned with the fact that the national sales force had to ensure an increase and an improvement in the existing national distribution coverage and, therefore, the sales of all of its international brands by getting them in the front line of as many customers as possible. The strategy the company thought of using to deal with this challenge was to hire or recruit young staff that were fresh out of colleges and universities and to turn them into sales forces that were effective. Based at home, these sales forces would have to be mobile. They would also need to have the ability to communicate easily and work remotely hand- in- hand with the regional managers and the head office (Charles Wells’ adopts teleworking solution for mobile sales force).
The company came up with a solution. The solution was working from home; the sales force used PCs with modem Internet connection supplemented by fixed broadband Internet. They were also able to come by a CRM system that had some details of the customers. The database technology was extremely useful as it enabled the replication to the tablet PCs of the representatives so they could operate independently with the most current customer information and data available. To support this process, each member of the sales force was given a multifunction device that had several functions in one machine. The members could, therefore, print, scan and copy from one compact device, thus, reducing the impacts of technology within the home office and reducing the total space used, and most essentially print in either mono or color. This solution offered the company a number of benefits. The project to address this challenge was successful, as a result, of the close collaboration between network support, developers, users and sales management. As a result, the project is producing results, with numerous new listings. The results of the project are key elements to the success of the solution. This project is an excellent example of how IT and mobile technology strategies can be of use to numerous businesses such as Charles Wells Ltd in solving its technological and operational challenges (Charles Wells’ adopts teleworking solution for mobile sales force).
Part 3- Summary and Conclusion
Organizations have for a long time made use of the value chain framework for organizational strategic planning. The value chain framework indicates that the value chain of a firm is useful in understanding and identifying critical aspects to attain competitive strengths and key competencies in the marketplace. The model also shows how the value chain activities are connected together to ultimately establish the value for the customer. The five main activities and four support activities create a system that is interdependent that is tied together by linkages. Therefore, analysis of the value chain has to break down the main activities of the organization according to the activities stipulated in the framework, and assesses the potential for increasing value through the means of differentiation or cost advantage. Finally, it is essential to determine strategies that put their focus on those activities that would make it feasible for the corporation to achieve competitive advantage, which it can sustain.
The value chains of numerous organizations have gone through many modifications in the earlier years, as a result, of inventions, innovations and advancements in technology enabling change at an increasingly rapid pace in the environment of business. As we have seen in the case study, these rapidly changing technological environments in business have caused numerous challenges for the Charles Wells Ltd, which had to change its approach to sales and marketing by recruiting new sales forces, which were later trained using new technologies. The integration of mobile technology into the new marketing and sales tactics enabled the company to solve its challenges and turn its sales around to become more profitable. The company made came up with the solutions to its problems after breaking down the main activities of the organization according to those stipulated in the framework, and after assessing its potential for increasing value through the means of differentiation and cost advantage. As a result, the corporation was able to come up with solutions and strategies that focus on the wanting activities, and which upon improvement would enable the company attain competitive advantage.
References
About Charles Wells. Charles Wells Pub Company. Retrieved from http://www.charleswells.co.uk/home/about
Charles Wells’ adopts teleworking solution for mobile sales force. Together. Retrieved from http://www.brother.co.uk/display.cfm?id=124129&isAdmin=1
How a shrinking world creates new logistics challenges. Solusource. Retrieved from http://www.solusource.com/tominfo/WhitePapers/Shrinking%20World%20Creates%20Logistics%20Challenges.pdf
Strategic management. The value chain. QuickMBA. Knowledge to Power Your Business. Retrieved from http://www.quickmba.com/strategy/value-chain/
Strategic management. Value chain. NetMBA. Business Knowledge Center. Retrieved from http://www.netmba.com/strategy/value-chain/
movie Flying Cheap
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Flying Cheap
There is a growing increase of people using planes. The advent of technology has made the world a global village, as a result, many people are moving between and among continents for business, diplomatic, leisure and finding homes. In order to manage all this many travels, more reliable, fast and efficient systems of travelling are the most sought. The airline industry is the sole assistant for this necessity.
People will always like to experience a more fast, comfortable and reliable transport means. Overall, air transport has been cited as the most secure means of travelling between and among continents on the globe. It has rare accidents and the travelling conditions are a lot comfortable compare to other means of travelling between continents.
While travelling, everybody always wants to reach his destination fast without being bogged down by the airline. However, perhaps a question that flight passengers fail to ask is themselves is whether the value they expect to get from flight companies is mutually exclusive from safety. This argument is perhaps what set up investigators from Frontline to search and find out. In this movie, the investigators are motivated by the air crash that happened in February 2009, where flight 3407 was involved.
Following this crash, we have witnessed many changes in the industry; with passengers have a wide range of choices of flights with varying prices. The liberation of the industry has brought so many changes that are being enjoyed by passengers. Despite all this, flight companies are very boastful that the industry is the sole monopoly of safety with regards to travelling within and without.
This documentary aims at explaining the concept that while at times flight passengers have the impression that they have trained, experienced and smart pilots, the concept can sometimes be wrong. The reality is that sometimes, the passengers do have a cockpit filled with captains that have been deprived of sleep for a long time, some are purely undertrained and most hearting is that they are underpaid.
This film tries to search and explain some of the mysteries around an accident that happened in February 2009 involving the famous continental flight 3407. On this occasion, the crashing commuter flight claimed the lives of a massive 50 people with one of them victims having been on the ground.
As brought out in this film, the major cause of the accident is said to have been errors of the pilot and the first officer in charge. This film looks a bit horrifying. Some of the staff that has worked for Colgan Company are explaining their versions of experience while working at Colgan, something that makes this film quite thrilling. After this incident, the airline industry took a different turn. The industry developed a new pattern of working. One of the changes is that like Colgan, other small airline operating companies have had to rebrand. Lacking the means to train pilots to run large aeroplanes but still enjoy the competitive advantage, the airlines can use such names as continental on their brands. This is usually done with the aim of luring customer to come and enjoy the comfort and luxury of travelling in large planes while keeping their flight expenses low
There has still been some airline accidents since 2002 according to the documentary. Most of them if not all, have the accidents have been a result of mistakes by pilots. The N.T.S.B found that out of the six accidents that had occurred since then, four of them wear caused be pilot errors. As a matter of fact one pilot who had been working for Colgan earlier explains how his particular day in flying was, he says, “a lot of short routes, a lot of takeoffs, a lot of landings, and going in and out of bad weather, being down low” (Genzlinger 6).
When pilots work for long hours without ample rest, it is tiring and thus fatigue can be a major cause of lapses that can results into fatal errors. Pilots working for Colgan have had horrendous experiences. It is therefore no hard to say that most of the accidents that have involved Colgan were human errors caused by administrative issues in the company. Genzlinger says, “a lot of short routes, a lot of takeoffs, a lot of landings, and going in and out of bad weather, being down low” (7)
Underpayment is cited as one of the main challenges that were experienced by crew members in this documentary. In flight 3407, the first officer had actually to fly in from Seattle through Memphis in order to begin his working day. The concept of having low payments affected many of the crew workers; they were mostly forced to commute long distances to work. Renting a hotel was not an option because the remuneration was not enough. Alternatively, they were made to find some little rest in apartments that partner pilots would rent. The main shortcoming here was that they were very congested and this would not guarantee them ample sleep or rest to manage the next flight schedule.
This film may seem frightening for passengers that fly regularly. This is because there are no traces of hope that the situation will be corrected soonest. You may not be notified of any changes by flight companies. What may be hard to tell is that the next time you are boarding a plane, you may not actually tell if the crew members are undertrained, are having conducive working conditions, or they are a just a bunch of tired pilots struggling to make their living in the air.
Frontline’s investigators revealed that major airlines hard a share of the blame in all this accidents that happened after 2009. The airlines had targeted to remain relevant in the airline field by reducing their flight costs. This is what made them to allow small companies like Colgan to use some of their brand names. Passengers would therefore opt to use the flights due to reduced costs, and the repercussion was; increaser flights due to an upward rise in the number of flight customers in this small planes.
The increased flights were actually the main cause of fatigue to pilots. Perhaps the need to minimize on costs makes the companies to underpay their crew members.
It is good to appreciate that this documentary was a turn around to the flight industry. The president had to sign some legislations; “President Obama signed The Airline Safety and Federal Aviation Administration Extension Act of 2010 into law,” (Rentz 2) which have brought about major improvements in the industry to boost passenger and crew safety in the aviation field. Qualifications for pilots have been streamlined and the particular training accompanying such has been improved as well.
There still more changes being proposed into this industry and in future we hope to enjoy comfortable flying experiences at reduced costs. The industry is also going to attract lucrative pays for pilots and crew members. Accidents are things that can be avoided, except for natural impediments, human errors can be rectified. Thanks to legislations and the professionalism with which the matters are being handled.
Works cited
Genzlinger Neil. “Up in the Air, With Frayed Safety Nets.” 2010. Web. 10 February 2014. < http://www.nytimes.com/2010/02/09/arts/television/09cheap.html?_r=0>
Rentz Catherine. “ HYPERLINK “http://investigativereportingworkshop.org/blogs/shop-notes/posts/2011/nov/29/pbs-will-re-air-flying-cheap-tonight/” PBS will re-air ‘Flying Cheap’ tonight.” 2011. Web. 10 February 2014 < http://investigativereportingworkshop.org/blogs/shop-notes/posts/2011/nov/29/pbs-will-re-air-flying-cheap-tonight/ >
Washington Denzel. “Flying Cheap.” 2012. Web Feb 10, 2014 < http://video.pbs.org/video/1412744270/>
Moral ethics
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Moral ethics
Aristotle was a Greek scholar who contributed immensely to the fields of ethics, philosophy, biology, and botany. He was a firm believer in teleology. Teleology is a term that describes that states that each object has a final purpose or cause or goal or true ending. Therefore, for one to achieve their good they must attain the function. Human beings are the supreme rulers of the world, and what distinguishes us from the rest of the world is the ability to reason and act on reason. Aristotle uses the term eudaimonia to describe the state human beings achieve for experiencing a good life. Aristotle’s virtue ethics is based primarily on people and their traits rather than the actions (Van Hooft, 2014). Hence, morality has to do with “how should I be?” instead of “what should I do?”. The paper will analyze scenarios in business where Aristotelian principles can apply. It is a case of how someone should behave which is extrapolated in their actions.
Virtue ethics are essential in elaborating on many ethical problems in the business world. Virtue and moral features provide wisdom critical for analyzing specific traits. Aristotle states that every art as well as every pursuit and action aims to do good. Human beings are persistently in search of moral values and appropriate conduct (Garcia-Ruiz & Carlos). Aristotle admits that leading a truthful and virtuous life is not easy but also highlights that people can learn to do good if they are taught. An individual who lives well and does good deeds must be virtuous and knowledgeable. Aristotle categorized all the virtues into four cardinal groups namely courage, justice, practical wisdom, and temperance.
Ethics are applied in the business world either, voluntarily or involuntarily. Virtue ethics provide organizations with the moral foundation for them to operate. Consequently, all business interests and events should promote rather than undermine human life. People and entities should strive to achieve good in along with others. A virtuous business should be selfless. This means that it should consider the well-being of its employees, employers, environment, customers, and community. If this can be done, one can say they have achieved eudemonia.
Take, for example, a situation an executive attends a highly confidential meeting where the board is discussing investment matters that are to boost the company. The company notes that its profits are decreasing hence the need to reach out to new and old investors. The executive reveals this information to a hedge fund firm. The manager uses this information to make millions from the company in one night. The actions of the manager contradict Aristotle’s virtue ethics that define that every action should aim to do good for both the society and person to co-exist. According to this theory, the virtues should be moral (Bessie & Michael). The good can only be assessed when it appeases all the parties involved.
According to virtue ethics, the actions of the manager were indecent, selfish, and inappropriate. Would a virtuous person leak confidential information? The answer is no. The executive’s actions lacked appropriate integrity. The executive is dishonest to his company when he leaks key information about his company. He also broke the trust of his directors and employees. Fairness. He only revealed the information to his friend and not to the rest of the investors who became disadvantaged. One can say that he used the information for his gain. He also lacked self-control otherwise he would not have leaked the information. The intentional and calculative objective of practical wisdom in the virtue framework cannot be stressed enough.
The spirit of teamwork in a business entity is based on trust. Aristotle’s principles have been on the rise in the field of business management (Dierksmeier, 2009). The subordinates firmly believe that their superiors make decisions on behalf of the business in good faith. In this foundation, the subordinates trust that any action that is required of them seeks a goal that is beneficial to all. In this arrangement, the juniors understand that those in management occupy such positions courtesy of some qualities that they possess or certain criteria that they met. Such a process is thought to be rigorous enough so that those who finally get recruited are indeed fit to hold the offices. Therefore, it’s not in bad faith that others occupy managerial positions while others do not. The juniors hope that the superiors will have the same understanding that their subordinates understand the reason why they are not in management and what is expected of them thereof. In this common understanding, there is no mistrust as the superiors are expected not to exploit the juniors while the juniors are expected not to undermine their seniors. However, the application of Aristotle’s principle of action aimed in good faith seems to be the main fabric behind this teamwork.
Besides employees, other stakeholders have an interest in the business. Such stakeholders include investors, customers, suppliers, and shareholders. The integral part of modern business ethics involves a discussion about stakeholders. It is imperative to note that stakeholders such as investors and shareholders do not take part in the day-to-day running of the business. It’s at this point that the incorporation of Aristotelian ethical principles is of importance enjoining the board of management to act in good faith and the interest of the stakeholders (Wijnberg, 2000). The implications of this approach include the cultivation of trust among the stakeholders, which enables the business to run efficiently. Avoidance of public wrangles that sometimes culminate in court cases will also attract more investors and even partnerships. Such a business is expected to flourish and even outmaneuver other competitors in the field.
The goal of any business is to make a profit. This is true from the ownership of the business through the ranks up to the subordinates. Even the stakeholders that do not have a monetary interest in the business, they aim to profit somehow from the business entity. The customers seek to obtain affordable and efficient goods and services, the employees aim at earning a salary for their livelihood, the community in which the business is established looks forward to benefiting through corporate philanthropy and the authorities aspire to earn taxes through transactions that the business entity engages in. Aristotle disputes the “profit motive” which refers to the pursuit of income regardless of customer satisfaction (Boatright, 2019). Predictably, such pursuit of selfish interest is likely to lead to failure of the business. This is because it promotes mistrust among the stakeholders. Any action by any player in the business is seen to be selfish and therefore is not expected to be executed in good faith. The application of Aristotelian ethical principles in this scenario will certainly promote the common interests of every player. This is an act of good faith since one pursues a self-interest while being mindful that others also have a goal to achieve. All the stakeholders will, therefore, accommodate and further each other’s interests, while promoting coexistence.
Virtue ethics explores the possibility of business entities embracing the idea that human beings are born with inherent dignity. This idea implies that each employee has a potential that can be exploited for the common good of the business. However, this could also require empowerment, encouragement, and enhancement by providing the employees with opportunities to explore their capabilities. The scalar chain of command is the formal line of authority and responsibility within an organization. It’s essential in an organization to prevent double subordination. It ensures that decisions are carried out by the top management and executory roles are left to the subordinates. Any communication follows an established chain whereby a subordinate only communicates with his immediate superior. This has ensured the efficient and smooth running of businesses. It’s due to the merits of the utility of command that many argue against the incorporation of Aristotelian ethical principles in the chain of authority. However, the amalgamation of virtue ethics and the dignitary capability will ensure that this approach is not misused (Bertland, 2009). Abuse of this approach will impact negatively on the business. Unchecked authority on the employees may be exploited by some to promote selfish interests with the knowledge that they are not accountable to anyone. However, it’s acceptable that the subordinates have some capabilities that the management lacks. They need to be trained on ethical code even as they’re given authority to exploit their capabilities.
The goals of many businesses do not include their moral obligation to the welfare of the community. This concept, referred to as corporate philanthropy ” is of great significance and a worthy discussion since the community may not benefit from the business directly, hence is prone to be overlooked. It’s the reason why companies release toxic waste products to the environment, regardless of the potential hazardous effects on the health of the occupants of the surrounding. It is even more outrageous when such companies liaise with agencies that are tasked with ensuring that the environment is not polluted to cover up such acts. Ironically, such agencies become accomplices to crimes that they are mandated to fight and protect the citizens. It’s due to such that advocacy is made to incorporate the virtue ethics on the role of the business to the community. Business ethics enjoin management to fulfill the societal mandate (Pies, 2018). Through this approach, businesses will support various community programs including, social welfare, supporting educational programs for the needy families, employing some members from the community, and ensuring their practices do not negatively affect the society.
Disagreement is thought to be an integral part of any business entity. It is due to this understanding that many businesses come up with conflict resolution measures for foreseeable disagreements. The anticipation of failure of such mechanisms informs the decision to also put in place dissolution procedures and liquidated damages. Application of business virtue ethics in conflict resolution may lead to the smooth running of the business when disagreements arise. Virtue ethics advocate for resolution based on the factual and normative facts (Hartman, 2008). This strategy is based on the assumption that the warring parties will negotiate in good faith and with a genuine goal towards reconciliation. Each party will understand the motivation of the other party that led to the conflict. The spirit of forgiveness as a basis for reconciliation will be upheld. Failure of the reconciliatory process will not be interpreted as a culmination of ill will motives but rather an outcome among the potential outcomes.
Aristotelian principles have been applied in other sectors in society. Application in business is expected to result in the efficient running of the business. Virtue ethics itself is based on the assumption that any action is in good faith and has a goal or true ending. Therefore, the incorporation of these ideas in business is also based on being mindful of other’s interests in any action executed. This is the foundation upon which the enactment of these ideas is envisioned to be based upon.
References
Bertland, A. Virtue Ethics in Business and the Capabilities Approach. J Bus Ethics 84, 25–32 (2009). https://doi.org/10.1007/s10551-008-9686-3
Besser, Lorraine L., and Michael Slote, eds. The Routledge companion to virtue ethics. Routledge, 2015.
Boatright, John R. “Aristotle meets Wallstreet: The case for virtual ethics in business, vol 5 no. 2, 1995 pp.353-359.Accessed 15th Oct. 2019.
Dierksmeier, C., Pirson, M. Oikonomia Versus Chrematistike: Learning from Aristotle About the Future Orientation of Business Management. J Bus Ethics 88, 417–430 (2009). https://doi.org/10.1007/s10551-009-
Garcia-Ruiz, Pablo, and Carlos Rodriguez-Lluesma. “Consumption practices: A virtue ethics approach.” Business Ethics Quarterly 24.4 (2014): 509-531.
Hartman, Edwin M. “Reconciliation in Business Ethics: Some Advice from Aristotle.” Business Ethics Quarterly, vol. 18, no. 2, 2008, pp. 253–265. JSTOR, www.jstor.org/stable/27673231. Accessed 15 Oct. 2020.
Pies, I., Beckmann, M. & Hielscher, S. Value Creation, Management Competencies, and Global Corporate Citizenship: An Ordonomic Approach to Business Ethics in the Age of Globalization. J Bus Ethics 94, 265–278 (2010). https://doi.org/10.1007/s10551-009-0263-1
Van Hooft, Stan. Understanding virtue ethics. Routledge, 2014.
Wijnberg, N.M. Normative Stakeholder Theory and Aristotle: The Link Between Ethics and Politics. Journal of Business Ethics 25, 329–342 (2000). https://doi.org/10.1023/A:1006086226794