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A Case Study of the Australian General ECE Sector
Attaining Advocacy: A Case Study of the Australian General ECE Sector
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Contents
TOC o “1-3” h z u 1. Introduction PAGEREF _Toc73536663 h 21.1 Background of the Study PAGEREF _Toc73536664 h 21.2 Problem Statement and Description PAGEREF _Toc73536665 h 31.3 Research Questions PAGEREF _Toc73536666 h 42. Methodology PAGEREF _Toc73536667 h 43. Results and Findings PAGEREF _Toc73536668 h 53.1 Legislation and Legal Framework for ECE in Australia PAGEREF _Toc73536669 h 53.2 The Role of Teachers in ECE Leadership PAGEREF _Toc73536670 h 73.3 Stability in the Role of Teachers as Leaders PAGEREF _Toc73536671 h 84. Discussion PAGEREF _Toc73536672 h 85. Conclusions and Recommendations PAGEREF _Toc73536673 h 9References PAGEREF _Toc73536674 h 11
1. Introduction1.1 Background of the StudyProfessional educators are among the most important and critical pillars within the early childhood sector because of their role in leadership. Waniganayake et al. (2012) identify a leader as an individual in a capacity to influence others and their decisions in a certain field. As such, childhood education professionals play the leadership role and expected to advocate on issues of relating to leadership and the welfare of the main stakeholders in early childhood education. Scholars agree that professional ECE teachers have the difficult role of bridging the gap, in terms of knowledge and professionalism, between individuals actively involved in early childhood leaning including parents and community leaders (Alameen, Male, & Palaiologou, 2015). For example, parents and older siblings, neighbors, and community leaders directly influence the development of ECE learners, employing mentorship roles and their own experiences as well as skills to make sure that these young learners successfully begin the learning process without issues. Yet, even with this important role, important people such as parents, community leaders, or older siblings do not automatically become leaders due to their involvement in enabling a sound learning environment and guidance roles. Bøe & Hognestad (2017) found that ECE professionals are leaders in every definition of the word because of how they weather the challenges of their environment and understand the relevance of collaborating and pooling resources with others to yield variant policies that benefit ECE learners as well as a better education system. The knowledge of their role as ECE professionals makes them leaders adding on to their skills and experiences in other major areas including openness to challenges, flexibility organization, and patience (Fairchild, 2019). ECE requires a lot of flexibility in both the methodology applied in keeping up with the demands of the sector as well as in leadership. ECE professionals embrace the diversity linked to ECE and are demanded by their environment as leaders to be able to communicate effectively with other stakeholders such as colleagues, learners, community leaders, and parents to ensure the best outcome for ECE learners. In this paper, a case study research approach is taken to improve the leadership practice in ECE. Specifically, the paper will look at the problem, through the eyes of ECE institutions, provide an evaluation, and later offer a critical reflection based on evidence gathered on changes in the practice that would lead to better leadership outcomes. Overall, the changing role of the teaching and learning processes in ECE requires fresh strategies in leadership that not only facilitate learning but also improves on professional leadership as a critical process.
1.2 Problem Statement and DescriptionGlobally, a majority of industries have a proper definition of leadership and what that function entails. The definition of leadership and of a leader is very clear in almost every level of interaction for such industries. In ECE, this definition has not always been clear (Ho, 2012). The blurry description of leadership is a major issue in ensuring that the industry develops in line with others in different or similar contexts in education or elsewhere. The description of who a professional leader in the field of ECE is and who is expected, by industry standards, to advocate on issues of professionalism requires a lot of research and for more players to participate in shaping the ensuing debate. In looking at the extant body of research and theory on ECE leadership, Denee & Thornton (2017) found gaps that may impact on the welfare of learners in the teaching and learning process sin ECE. Haslip & Gullo (2018) defines professional ECE leadership in terms of educators who move on to become leaders. Educators in ECE are seen as people who show competency based on their knowledge, experiences, skills, and personality attributes, and are also capable of passing these crucial personality traits on to other professionals in a manner consistent to the role of a leader to motivate others towards meeting objectives and goals for ECE learners. According to Muijs et al. (2004), ECE teachers also double up as leaders because they not only possess skills and expertise in critical areas in ECE education, but also understand the learning needs of children, their development and processes required for learning, know the importance of working with families because the latter is a diverse learning environment, and also have management roles in supervising other members of staff. It is also noted by Heikka & Waniganayake (2011) that , ECE leaders, in this case the teachers, understand the learning system and can create policies that positively influence better quality of service available to students, their families, and the general community. As seen in these assertions, the basic definition of a leader in ECE is very weak. It lacks the proper mechanism to support exact roles and functions that leadership entails. It points to experience and skills as the only qualification, showing a lack of a framework for reference that the Australian ECE can be founded on. On a fundamental level, the basic principle in the Australian ECE looks at leadership and a leader as an individual who correctly evaluates how others in the field, such as preschool teachers, define and understand early care and the entire system, reflects frequently to examine changes in diverse knowledge areas, and regulates how this understanding and knowledge is continuously developed to expand and enhance learner outcomes. It can be concluded that this description of leadership is inadequate and a hindrance to attaining professional advocacy in the ECE sector (Hujala, 2013). Existing research fails to provide a correct description of leadership in an environment where the main stakeholder, young children, are unable to shape policies even though they are the main recipients of a bad or good structure. The current should contribute to covering this gap and to provide a proper definition of professional leadership and how it can be used to advocate for professionalism issues.
1.3 Research QuestionsIn order to give direction to this research proposal, the following research questions will be used:
Who is a professional leader in the field of ECE?
Who should advocate on issues of professionalism in the Australian ECE field?
What is the impact of leadership to the field of ECE?
2. MethodologyThis paper will use a case study approach on a qualitative data source platform. Observations and literature will be used to study real cases in Australia involving areas where leadership in ECE are explored. The case study will be based on past literature and examples from secondary sources. A descriptive standpoint will be taken where cases will be described with the purpose of gaining an understanding of leadership ECE phenomenon. Data collection will be qualitative and descriptive. By using secondary data, the problem will be analyzed in depth through observing what other scholars found about the particular subject. The method is appropriate for the research questions and the objectives of this research study. To obtain a detailed overview of the evolution and contemporary status of ECE in Australia, numerous documents will be reviewed. This will include legislation, policy documents, and frameworks. Document review will precede the key respondent interviews and will serve as the basis for the development of interview protocols. Every document will be reviewed for its salience to the research questions and key data from every document will be summarized. So as to collect the most recent information on the status of ECE systems in Australia, key respondent interviews will be conducted with major stakeholders. Because this analysis is a first in terms of a comprehensive examination of the ECE framework in Australia, there is a need to include an assorted set of respondents. In a qualitative approach, guiding of the sample selection will be a commitment that will see the inclusion of diverse voices to ensure that even a relatively small sample will be able to capture contrasting views and disconfirming evidence where applicable. For the case studies, senior ministry personnel will be interviewed, including representatives from the education ministry, children social services, and any other relevant government sector concerned with policy formulation on ECE. In addition, there will be an interview scheduled for the national minister for ECE. Additionally, representatives from the Australian ECE community will also be interviewed, not forgetting individuals from the Indigenous communities who have a lot of information relating to a common man’s perspective of ECE. Finally, there will be an inclusion from scholars and various representative bodies of literature.
With the aim of producing a revealing and accurate narration of leadership and advocacy on ECE in Australia, a systematic process will be used to analyze collected data. Because the data is qualitative in nature, different strategies will be applied to each data set and then a process of integrating the key lessons will follow. The qualitative data will be summarized into notes that will then be reviewed for practice and policy trends as well as the inclusion of real cases from the field. Data will be integrated to distinguish key divergent or convergent themes relevant to leadership in ECE and advocacy. These will be expanded as the analysis continues. Primary source documents will be consulted to find out what researchers analyzed in the past. Once key themes are substantiated and identified, a results and findings section will be prepared for further analysis. The report will then move to the discussion phase for further integration of the findings to the study topic and questions.
3. Results and Findings3.1 Legislation and Legal Framework for ECE in AustraliaPreschool has truly been imagined as a social and learning climate, and has a more drawn out history of activity and access in child care evaluations. In certain states and domains, preschools created as a component of educational systems, while in others they have been worked by local gatherings. Young learners have regularly gone to preschool on a sessional (brief hours and not generally for a five-day week) premise in the early years school. Administration strategy and subsidizing for preschools is situated inside state and domain branches of instruction. Strategy detailing in Australia is intently attached to majority rule measures (Douglass, 2019). For the most part, strategy is proposed by government serves and bantered by the more extensive local area, commonly through organized surveys under the protection of government. It is the job of government divisions to figure and give guidance to the clergyman and government on arrangement. This incorporates the creation of effect proclamations and spending suggestions. Following government support, strategy changes require parliamentary endorsement to become law.
Over the last few years, the Australian Education Council has developed and begun the implementation of a nationally consistent regulatory framework tasked with provision and licensing of ECE services, referred to as the National Quality Framework (NQF) (Tayler, Peachey, & Healey, 2018). The NQF is a significant reform that is intended at creating jointly governed and a uniform national approach in the regulation and quality assessments of all sanctioned ECE services. Essentially, the NQF assumes the early learning framework that offers uniform conditions for education/preschool and care/child care services across the country (Tayler, Peachey, & Healey, 2018). Upon application, the system replaced prevailing quality assurance and separate licensing processes across Australia. As such, the NQF is applicable to every approved ECE services for children. The aim of this system is to create efficiency and consistency for service providers and teachers operating across the different states and territories in Australia.
In recent years, key legislations have marked a new era for ECE in Australia. For example, the National Quality Standard (NQS), a national benchmark for the provision of quality services across seven areas, including an approved learning framework that guides the development of quality early childhood programs, providing a national curriculum for children in early education (Tayler, Peachey, & Healey, 2018). There was also an emergence of the Education and Care Services National Law and the Education and Care Services National Regulations, a national system for the regulation and enforcement of the NQS (Tayler, Peachey, & Healey, 2018). Additionally, Australia has introduced an evaluation and quality assessment rating structure that aims at determining the performance of individuals in the areas set out by the NQS (Tayler, Peachey, & Healey, 2018). Additionally, the Australian Children’s Education and Care Quality Authority (ACECQA), a national body, with federal, state, and territory governance arrangements, was created as a part of the legislative measures to bring leadership to the ECE sector in Australia (Tayler, Peachey, & Healey, 2018). ACECQA is responsible for managing the implementation and administration of other national systems.
3.2 The Role of Teachers in ECE LeadershipThe ECE teacher is a leader on a number of fronts (Heikka, 2014). In the Australian ECE sector, findings indicate that educators are also communicators. A significant part of the teaching and learning process is the communication aspect. For the educator, there are several expectations relating to the words used in teaching, the tone of voice, the mannerisms, all types of facial expressions and the body language (Kivunja, 2015). These are all aspects of communication that are done with children, thus needing a lot of care and skills. The teacher is also a facilitator as oppose to the traditional perspective of a didactic teacher. The ECE professional, in this case the teacher, does not simply pass information or knowledge to young learners but also supports them to be independent learners. Effective facilitators, according to Klevering & McNae (2018), set up an environment, plan programmes that suit individual learning needs and reflect on practice. The role of a facilitator is creating learning opportunities for ECE learners, through pointing out teachings attained in daily actions, events, and activities. The role of the teacher, across Australia, and in the ECE structure is to bridge the educational theory with best practice.
Based on the current ECE system, the part of the ECE educator as a researcher and implementer of current practices is getting increasingly more underlined across all education levels. Being an analyst is something other than gathering information and composing research papers. From the data analyzed and collected, it is true that Australian teachers in general have a role beyond teaching that incudes researching on best practices and employing the same to ensure positive learner outcomes (Tayler, Peachey, & Healey, 2018). It is tied in with utilizing perception and reflection to educate young learners. As the opinions of the children or guardians and their responses are put into the learning program, then the teacher is using research and utilizing it to inform practice (Strehmel, 2016). Essentially, in the event that they have issues addressing difficulties that emerge corresponding to children with extra requirements, partnering with guardians, or how to make a comprehensive system for a given setting leads one to specialists including books, articles and policies before implementing change. This also is research. Lastly, as an expert in the ECE, teachers are in an ideal situation to assist further the national insight regarding working with young ones; children development, improvement, instructional methods (pedagogy) and their overall learning.
3.3 Stability in the Role of Teachers as LeadersECE teachers have to address many cultural, educational and social challenges. This is because the changing nature of society, families, or childhood leads to a change in the work of ECE teachers. In Australia for example, the data collected indicates that several pedagogical and regulatory reforms have been implemented to develop ECE practice. As a result of the many professional demands and reforms created, teachers’ role as leaders in their initial and continuing capacity plays an essential role in increasing competence and effectiveness of policies. The Australian ECE system requires ECE teachers to fulfil a number of requirements. Due to the growing demands for professionalism, ECE teachers also need adequate leadership skills (Thornton et al., 2009). The data points to a need for the leadership to be constant and embedded in several aspects of the role played by ECE teachers. Therefore, ECE teachers take on roles including that of a leader and coordinators of not just the education system but also the curriculum work and double up as supporters of professional development for their colleagues. The role of ECE teachers in Australia has stabilized over the years t also include advocacy and that of facilitators in the creation of pedagogical improvements in the group of children they teach as well as the ECE centre level.
4. DiscussionTo explain the ECE system in Australia, the foregoing research point to the need to understand and implement the distributed leadership theory. From the findings, Haslip & Gullo (2018) found that every leader in a given learning environment must have the opportunity and the autonomy to not only define policies but also make independent decisions in areas of responsibilities touching on teaching and learning. The autonomy stated in the distributed leadership theory is key to the attainment of objectives in empowering ECE teachers as leaders and providing the opportunity to work with independence in decision making (Miller & Cable, 2010). In the distributed leadership approach, leadership is described in terms of its applicability and context. In the confines of distributed leadership approach, Heikka (2014) defines the leadership concept as a social and situated process intended to meet the key features of learning situations, followers, as well as leaders.
It follows that every ECE team member has equal opportunity to be a leader and to practice leadership, backed by the full support of others and taking responsibility of policies and directions, such as the legislative measures mentioned above relating to the entire ECE scene (Liu & Hallinger, 2018; Waniganayake et al., 2012). In the distributed theory approach, ECE leaders are likely to base decisions out of personal values to respond to different situations regarding the teaching and learning processes. Owing to the autonomy that the distributed leadership style suggests, a high chance of using personal values is present and this would influence the educational leadership approach taken as noted by Radinger (2014). For instance, the values of an ECE teacher and leader on a matter that touches on beliefs and faith are likely to direct leadership actions or decisions on a side biased to their position in the teaching and learning process. According to Heikka & Waniganayake (2011), every leader unconsciously, and sometimes deliberately, applies personal value to determine suitable leadership policies or actions. Consequently, personal values are an integral part of the distributed leadership theory, a major strategy applied in the Australian ECE sector today.
5. Conclusions and RecommendationsTo conclude, this paper has used a case study research approach to improve the leadership practice in ECE. Specifically, the paper will look at the problem, through the eyes of ECE institutions, provide an evaluation, and later offer a critical reflection based on evidence gathered on changes in the practice that would lead to better leadership outcomes. Professional educators are among the most important and critical pillars within the early childhood sector because of their role in leadership. As such, childhood education professionals play the leadership role and expected to advocate on issues of relating to leadership and the welfare of the main stakeholders in early childhood education. The discussion finds that an agreement amongst scholars on the point that professional ECE teachers have the difficult role of bridging the gap, in terms of knowledge and professionalism, between individuals actively involved in early childhood leaning including parents and community leaders. Parents and older siblings, neighbors, and community leaders directly influence the development of ECE learners, employing mentorship roles and their own experiences as well as skills to make sure that these young learners successfully begin the learning process without issues, yet do not automatically become leaders due to their involvement in enabling a sound learning environment and guidance roles. ECE professionals are leaders in every definition of the word because of how they weather the challenges of their environment and understand the relevance of collaborating and pooling resources with others to yield variant policies that benefit ECE learners as well as a better education system. The knowledge of their role as ECE professionals makes them leaders adding on to their skills and experiences in other major areas including openness to challenges, flexibility organization, and patience. Overall, the changing role of the teaching and learning processes in ECE requires fresh strategies in leadership that not only facilitate learning but also improves on professional leadership as a critical process.
The following recommendations are suggested. That, first, the Australian curriculum corrects the clear lack of an independent leadership structure despite the field of ECE being a self-regulating entity in the larger education sector. A major leadership issue in ECE remains to be that leaders are dependent on the structures and frameworks applied in other areas of education. In ECE, classroom teachers for example, are confined to using the curriculums and leadership approach provided for the overall education sector. From the Australian ECE sector case study, it is evident that the integration of ECE to the general education curriculum is important in preparing young learners for the future. However, the integration of these systems in terms of preschool and primary curriculum only serves to limit just how well ECE leaders, in this case professionals in the learning environment, can effectively formulate and implement policies and decisions. Another major problem identified is that ECE leadership in Australia suffers from a lack of and a poor definition of functions and roles. It is recommended that the entire system redefines the leadership role of ECE teachers and professionals in a way that incorporates recent changes to the ECE scene, the changing roles of teachers, the impact of leadership on the teaching and learning processes, and other issues including management that constitute effective leadership.
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A Case Study Of Businnes Law
A Case Study Of Businnes Law
Introduction
Betty Dukes the respondent together with other women have come up with a title 7 employment inequity case against Wal-Mart Stores who is the petitioner in this case. The District Court of U.S.A California north qualified a course of action comprising of of all women working at any of the stores belonging to Wal-Mart from the 26th December of 1998 who might have been of would be subjected to the purportedly biased policies and norms of Wal-Mart. The lawsuit purported that the women’s employer indulged in company wide sexual biases by remunerating men more than women, thus promoting less women to prestigious management positions and enhancing male workers a bit fast. The case dubbed Wal-Mart v. Dukes as a course of action managed to reach the supreme court, which did hear verbal arguments on the 29th of March. The main question therefore that was before in the hands of the supreme court was if Betty Dukes together with her female counterparts at Wal-Mart could go ahead as a group to come forward with discriminatory sentiments against their employer Wal-Mart.
Analysis
To me the U.S Supreme Court was divided. Despite the fact that the high court never gave a ruling on the case advantages, the rather misinformed decision shelters women who worked at Wal-Mart from tackling America’s biggest private employer as a unified group across the nation forcing each woman to personally file her sentiments or rather in shrink, action groups CITATION Kar09 l 1033 (Fisk, 2009). The supreme court ignored more that forty years of reputable jurisprudence and relentlessly constrained the chances of the workers to brawl discrimination as a class action unit. More importantly, the court enormously conservative judgement gave a lot of focus to the sheer incidence of a corporate anti-discrimination framework, despite the fact that the framework seemed not to have been adhered to. The court’s decision seems to give a dark future indication to further workers class action cases and a promising future for employers to go ahead using highly prejudiced remuneration and sex discrimination activities.
The company alleges that since the company is wide, the process of making decisions by managers is also spread that it cannot be held liable. But then we know that I corporations where the surroundings are unfavorable to women is purposefully perpetuated in all areas from daunting women from making applications to departmental positions like hardwares, sporting materials to attending meetings, the truth that store managers have the powers just indicates their discrimination.
What should be critical for me is not just the injustice done to the several employers, but the spirit of Wal-Mart and the corporate powers behind their case, this factor in the commerce chamber, limiting the chances of women that affected by these policies to come together as a unit and push forward a unified fight in court. In case Wal-Mart emerges victorious in this case, it will clip the voices of women working in it that they would not be able to alter their remunerations or disparities in promotions, lawsuits that will also come after it regarding discrimination within areas of work, violations of trust, protection of consumers and civil rights will be seriously affected, pushing away case brought up by big groups of persons against huge corporate companies (Fisk, 2009).
Action classes particularly those that bring together huge numbers of workers witnessing back remunerations, are a vital organ for holding corporations answerable for widespread discriminations, particularly when the damage caused to a single person, like Betty is significant compared to the larger image of discrimination. Most companies want it for people to fight individual fights such as that of David and Goliath. From such fights wide patterns of companies injustices would remain under the carpet due to the fact that discoveries by legal teams would be minimal and corporate wide statistical proof might be inadmissible in court. Even in the event that the company lost many cases dealing with individual subjects, solutions would be primarily negligible. Adding to this, the Supreme Court understands from previous cases that the legal profession would be hesitant from pursuing such legal undertakings due to the fact that possible benefits are minimal and also the expenses of litigating against huge companies are high. Owing to these reasons, class actions are vital tools to Americans and the world at large in pursuing justice. The ruling indeed was against the Civil Rights Act of the year 1964 it was unfair to not only the women who were working at Wal-Mart but also for all the men and minority groups across the nation. It would affect many cases that would follow.
Conclusion
The supreme court decision clearly undermined the rights of women and class actions. In order for class actions to function as organs for pursuing justice and preventing company misbehavior, the defendant must have been compelled to honor the financial consequences intrinsic in compensating the real figure of persons who have been affected, with no regard to the number.
Reference
BIBLIOGRAPHY Fisk, K. G. (2009). Wal-Mart Wins Request in Bias Case Washington Post.
Kraft Foods Supply Chain problems (Cash flow) and Approaches used to solve the issue
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Kraft Foods Supply Chain problems (Cash flow) and Approaches used to solve the issue
Introduction
Kraft Foods Incorporation is involved in operations that are in the beverage and food industry. Its headquarters are located in Chicago, America, and it is the second largest such industry ( HYPERLINK “http://www.amazon.co.uk/Rebecca-Vickers/e/B001K8CMO8/ref=ntt_athr_dp_pel_1” Vickers, 2005. 3). The company has subsidiaries in over 70 countries, worldwide. There is a total of 98000 employees also, its products can be found in almost all the continents including Africa. The two Major subsidiaries of Kraft Foods are Kraft Foods North America Inc, and Kraft Foods International Inc. Kraft Foods is involved in marketing and packaging various retail food products. The latter varies from cheese products, confectionery, processed meats, juices and coffee, among others. The products are extremely useful to many consumers as they are found in categories such as Convenient Meals, Cheese, Snacks, and Beverages. Kraft Foods makes use of multiple distribution channels in order to distribute its products.
Kraft Foods also sell key brands that are popular with consumers such as Oreo, Maxwell house, Jacob’s and Post, among others. Kraft Foods seeks to ensure that consumers are provided with products that make their lives more healthy than usual. They seek to make available to consumers premium products, quick meals and snacks, which promote wellness, as well as health. In order to supply its products, Kraft Foods makes use of channels of distribution such as depots, cold storage facilities and satellite warehouses, among others (Ferrari, 2012. 1a).
This paper seeks to give a critical analysis regarding the Kraft Foods supply chain issues. Moreover, it seeks to find out approaches that can be used in solving the problem, in order to increase cash flow.
Critical analysis of the supply chain problems at Kraft Foods and how they can be solved
Everyone who has an opportunity of watching business news cannot have avoided the story concerning Kraft Foods. The supply chain department at Kraft Foods has faced many challenges in the past few years. Kraft Foods has had to free up cash, as well as to cut costs, in order to solve its supply chain problems. Currently, there is an economic downturn, and many companies are trying to find ways of navigating through it. Furthermore, there has been an increase in credit rules, as they have been made to become quite tight and thus, confronting. Kraft Foods have had to find ways through, which their cash flow, can be increased. It is evident that matters that concern supply chain are vital, and thus, urgency needs to be considered in solving the situation (Ferrari, 2012. 1a).
It is a fact that the company seeks to become imperative in an attempt to free up its cash. Before the economic meltdown in the year 2007, a strategic plan had already been devised in order to improve its financial capabilities. A goal had been established by Tim McLevish, Kraft Foods Chief Financial Officer, to increase its cash flow. He wanted to ensure that the company obtained cash flow as high as one billion dollars. Many people believed that he had set an extremely high goal that could not be realized. McLevish claimed that Kraft Foods had to plan well for its future. According to the senior vice president at Kraft Foods, Philipe Lambotte, “The higher the free cash flow, the better a company is able to gain access to capital and investment markets with a lower rate of borrowing for capital expenditures, acquisitions, or share repurchasing,” (Ferrari, 2012. 1a). Furthermore, he believed that bottom line and top line growth are vital and should not be ignored. The latter are needed as they help in making sure that free cash flow and fund growth are available.
There were many factors, which have to be considered, if Kraft Foods is to come up with an initiative on cash flow. The management should realize that they have to focus on key areas, such as capital expenditures, working capital, receivables and payables. This includes even being keen on inventory on hand, and the days, which they took place. Some people thought that this issue concerned the finance department, but they were extremely wrong. It should be known that the supply chain is the main reason why the problem existed (Ferrari, 2012. 1b). For example, there many cases whereby, some of the employees at Kraft Foods would take home stock that did not sell. They assumed that since the consumers did not want to buy certain products, they needed to take them. On a normal working day at Kraft Foods, costs of inventory, which is tied up, reaches up to 30 percent or twenty percent. The latter is related to the products available as well as the costs incurred. According to Lambotte, some products have high inventory and costs, which can reach up to 50 percent. It seems that Kraft Foods needs to ensure that it only suppliers to its stores, the right quantity of products. Also, ensure that the consumers obtain the products as soon as possible. If this takes place, cash will be obtained easily, as products are sold at a fast pace. A strong relationship should exist between cash flow and inventory and its supply chain department should engage in this project (Ferrari, 2012. 1b).
The matter concerning freeing up cash is a focus, which is natural, for the supply chain at Kraft Foods. This means that it will not be easy trying to find extra money, due to the supply chain problems. As a result of the company’s diversity and breadth, the problem cannot be attacked. The latter is due to the initiative that is ‘one size fits’ also, because it is centralized. Annually, Kraft Foods earn as much as 43 billion dollars in revenue as it is a multinational company. It needs to find ways to ensure that the revenues do not decrease, and at the same time, increase its revenues. Since Kraft Foods has diverse markets and brands, it has come up with a total of 23 units (Supply Chain Digest, 2012. 1). In Europe and North America, the business units will focus their attention on specific products. These include products such as food service, beverages and dairy. Out of the entire twenty three units, only twelve units follow the model that has been mentioned. The rest of the units focus their attention on China or Brazil, which are considered being national markets that can carry diverse brands. Lambotte claims that the unique and different supply chains exist for the various business units.
There is a complex supply chain that exists at Kraft Foods, as well as that of inventory ownership. The latter depends on the customer’s sales arrangement. Most times, the products found in shelves are owned by the company, and such items include cookies and pizza. However, a product like coffee is normally owned by the company in terms of inventory. Kraft Foods only loses its ownership after the coffee is at the distribution center that belongs to the customer. There are various inventory-ownership arrangements at Kraft Foods, and they have a significant impact. It is quite unfortunate that the company could not find a way of ensuring that all the business units generated cash (Roberts, 2012.1). In turn, those in charge of the projects should focus on the individual supply chains of the business units. This is referred to as ‘case by case bases in matters that concern supply chain. Lambotte claims that “When you think about inventory, you have to think about the flexibility of your supply chain as well as that of your retail customers,” (Mentzer, 2001.23). It means that making right decisions is extremely vital and should not be ignored. It can lead to few items on the shelves and even, there being fewer inventories. Moreover, it goes against the principles that seek to ensure that cash flow is improved.
Distribution channels at Kraft Foods
The company mainly makes use of the distribution and supply channel known as Direct Store Delivery. This means that distributors and suppliers are the ones who deliver products to the store directly. Therefore, there is no retailer who acts as a distributor center at Kraft Foods. There are a lot of advantages obtained from using the DSD channels, such as in store forecasting, shelf inventory management and even store ordering. Also, it assists in promotion and price execution, and even management of items at the stores. The other type of distribution channel used by Kraft Foods is the Centralized Distribution Logistic Networks. In this system, the products are transported to the retail stores from the wholesaler. Thus, Kraft Foods uses a DSD network that is two tiers, as well as a Centralized Distribution Network. For example, the Nabisco Biscuits is delivered through the DSD two tier networks, while most frozen foods are delivered through the Centralized Distribution Model (Ferrari, 2012.1b).
The Case by Case Analysis
The leader at Kraft Foods, in charge of supply chain matters, should recognize the need to ensure that all managers and employees are involved in the initiative. They all have to ensure that the cash flow at the company improves. They have to put more emphasize on the inventories value by changing their mindset. The leader should recognize that the employees have to be informed about their actions, which are causing inventory problems. For example, if an employee stored products without attempting to sell them, they were causing supply chain problems (Simchi-Levi &Kaminsky & Simchi-levi, 2004). It meant that the employee was reducing the economic value of the product by making it become tied up. It is only when a product is removed from the shelf and sold that it gains economic value. This is the mentality that everyone working at Kraft Foods needs to keep in mind.
In order to solve the supply chain problem, Kraft Foods should adopt the twofold approach. It would make it mandatory to ensure that the business units are provided with incentives. The latter will assist in making the working capital improve. Furthermore, any manager who would free up cash well would be entitled to a cash bonus. The approach would give expert assistance to the various business units, and that would take the form of Cash Flow Excellence. They would act as consultants who were internally based at Kraft Foods. Those chosen to be the team’s experts should be the company’s middle managers. They have for many years dealt with issues concerning cash flow at Kraft Foods. In turn, they will be able to ensure that sound practices are followed by all the business units. The team can be compared to that of a SWAT team, which has various experts on supply chain (Simchi-Levi &Kaminsky & Simchi-levi, 2004). The team would work towards improving the various business units, whether they were in the United States, Russia or even Brazil. It does not matter, which question is asked, as the team members are able to answers the various questions well. It is a fact that the managers have the ability of solving the situation that they encounter as they have skills.
All the business unit employees have to undergo workshops that last at least two days, and are held by the experts. During the sessions, all employees including the unit’s general manager have to attend as it is mandatory. At the sessions, the employees are to analyze the supply chain issues facing the specific business unit. Also, they have to find possible ways by, which the cash can be freed up. It is due to the case by case approach that Kraft Foods can become successful (Simchi-Levi &Kaminsky & Simchi-levi, 2004). By focusing on the pinch points and the situational analysis, of the different business units, it is possible to solve supply chain issues. For example, there are business units that have more finished goods, as compared to the raw materials. There even those that deal with spare parts, and thus, do not have extreme processes of manufacturing. On the other hand, there are business units, which have long payables, and payment terms that are inefficient. In turn, the unit ends up having a lot of inventory that is tied up. Some refer to this situation as being quite easy and short term or, difficult and big.
Suitable ways of solving the problem concerning inventory
There are steps that have to be adopted by the business units, in order to liberate their cash flow. If there is a need to reduce inventory that has not been sold, customers have to take part in the selling process. The Stock Keeping Units numbers have to be rationalized depending on the customers. Also, products that produce low revenue and are high in volatility, have to be phased out. It should be known that revenue is reduced when some items on the shelves are eliminated (Kaushik & Cooper, 2000.70). Furthermore, the cash flow is increased by the remaining products, which are profitable and better selling. Another tactic is to engage in repetitive flexible manufacturing, as it aids in ensuring that inventory is paired down. It is better as compared to constantly having to respond to changes in demand. Manufacturing lines are known to produce fixed quantities and regular frequency products, at extremely high volumes. For example, when making cookies it will be easy to use the manufacturing system to make the cookies on a weekly basis. This will assist in only producing the right quantity that can be sold and bought by the customers. It means that the SKU, which has a low demand, has to have its service levels reduced, in order to create cash flow (Kaushik & Cooper, 2000.79).
At Kraft Foods, there is a need to use multiple distribution channels. This means that products will be distributed to various locations by different suppliers. This ensures that products are delivered to Kraft Foods stores depending on certain factors. This can be quality and quantity of the products, or even the location of the Kraft Foods stores. Moreover, Kraft Foods should find a way of venturing and distributing its products into new markets. If it does the latter, it is sure to increase the revenue that it makes. For example, in Finland, Kraft Foods has made use of sales promoters who will distribute the products. They act as mediators between the Kraft Foods and other merchandisers. Furthermore, they can assist the company acquire products at cheap prices.
Lastly, Kraft Foods should know that by having few inventories, working capital does not improve. Also, the latter does not affect the levels of customer service. Other companies, which have followed this approach, have succeeded up to date. It seems that it is vital to ensure that inventory is slimed down. Also, Kraft Foods should purchase software that assist in supply chain matters. Also, the software will help in knowing locations and right quantities of stock that are needed. In supply chain, it is vital that forecasting is done, as it will help in selling the products, when inventories are kept at a minimum (Ferrari, 2012. 1a).
Conclusion
In conclusion, it is evident that Kraft Foods has faced many challenges, in matters that concerned supply chain. Also, the current economic crisis has made the company not to increase its revenues as it needs to. Furthermore, customers are not buying products from Kraft Foods as they used to some time back. The supply chain at the company can be improved through adapting to the latest technology, the twin fold approach, and the case by case approach. These recommendations should be closely followed in order for Kraft Foods to retain its glory among its customers, also, to earn high revenues.
Work Cited
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