Bakery Business Plan Jollys Java And Bakery

Bakery Business Plan Jollys Java And Bakery Jollys Java and Bakery (JJB) is a start-up coffee and bakery retail establishment located in southwest Washington. JJB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners industry experience and mild competitive climate in the area. JJB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists. The Company JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners. Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups. The company intends to hire two full-time pastry bakers and six part-time baristas to handle customer service and day to day operations. Products and Services JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail. The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available. The Market The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. Financial Considerations JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required. JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be approximately $13,000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company does not anticipate any cash flow problems. Company Summary JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A ten-year Small Business Administration (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to the partners industry experience and mild competitive climate in the area. 2.1 Company Ownership JJB is incorporated in the state of Washington. It is equally owned by its two partners. 2.2 Company History JJB is a start-up company. Financing will come from the partners capital and a ten-year SBA loan. The following chart and table illustrate the companys projected initial start-up costs. Products JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail. The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available. Market Analysis Summary JJBs focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby highways. 4.1 Market Segmentation JJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products. Local Residents JJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business. Tourists Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. 4.1.1 Market Analysis The chart and table below outline the total market potential of the above described customer segments. 4.2 Target Market Segment Strategy The dominant target market for JJB is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market. 4.2.1 Market Needs Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the days activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day. 4.3 Service Business Analysis The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the numerous coffee bars across the region. Despite low competition in the immediate area, JJB will position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in a relaxing environment. 4.3.1 Competition and Buying Patterns Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience. Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations). Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. During fiscal year 2000, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories. Technologically savvy competitors make fresh coffee and coffee-related products conveniently available via mail order and online. Additionally, mail order catalogs offering coffees, certain food items, and select coffee-making equipment and accessories, have been made available by a few larger competitors. Websites offering online stores that allow customers to browse for and purchase coffee, gifts, and other items via the Internet have become more commonplace as well. Strategy and Implementation Summary JJB will succeed by offering consumers high quality coffee, espresso, and bakery products with personal service at a competitive price. 5.1 Competitive Edge JJBs competitive edge is the relatively low level of competition in the local area in this particular niche. 5.2 Sales Strategy As the chart and table show, JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. Sales Forecast 2001 2002 2003 Unit Sales Espresso Drinks 135,000 148,500 163,350 Pastry Items 86,000 94,600 104,060 Other 0 0 0 Total Unit Sales 221,000 243,100 267,410 Unit Prices 2001 2002 2003 Espresso Drinks $3.00 $3.15 $3.31 Pastry Items $1.00 $1.05 $1.10 Other $0.00 $0.00 $0.00 Sales Espresso Drinks $405,000 $467,775 $540,280 Pastry Items $86,000 $99,330 $114,726 Other $0 $0 $0 Total Sales $491,000 $567,105 $655,006 Direct Unit Costs 2001 2002 2003 Espresso Drinks $0.25 $0.26 $0.28 Pastry Items $0.50 $0.53 $0.55 Other $0.00 $0.00 $0.00 Direct Cost of Sales Espresso Drinks $33,750 $38,981 $45,023 Pastry Items $43,000 $49,665 $57,363 Other $0 $0 $0 Subtotal Direct Cost of Sales $76,750 $88,646 $102,386 Management Summary Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne Jansonne and Burper Foods. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups. 6.1 Personnel Plan As the personnel plan shows, JJB expects to make significant investments in sales, sales support, and product development personnel. Personnel Plan 2001 2002 2003 Managers $100,000 $105,000 $110,250 Pastry Bakers $40,800 $42,840 $44,982 Baristas $120,000 $126,000 $132,300 Other $0 $0 $0 Total People 10 10 10 Total Payroll $260,800 $273,840 $287,532 Financial Plan JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required. 7.1 Break-even Analysis JJBs Break-even Analysis is based on the average of the first-year figures for total sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. JJB should break even by the fourth month of its operation as it steadily increases its sales. Break-even Analysis Monthly Units Break-even 17,255 Monthly Revenue Break-even $38,336 Assumptions: Average Per-Unit Revenue $2.22 Average Per-Unit Variable Cost $0.35 Estimated Monthly Fixed Cost $32,343 7.2 Projected Profit and Loss As the Profit and Loss table shows, JJB expects to continue its steady growth in profitability over the next three years of operations. Pro Forma Profit and Loss 2001 2002 2003 Sales $491,000 $567,105 $655,006 Direct Cost of Sales $76,750 $88,646 $102,386 Other $0 $0 $0 Total Cost of Sales $76,750 $88,646 $102,386 Gross Margin $414,250 $478,459 $552,620 Gross Margin % 84.37% 84.37% 84.37% Expenses Payroll $260,800 $273,840 $287,532 Sales and Marketing and Other Expenses $27,000 $35,200 $71,460 Depreciation $60,000 $69,000 $79,350 Utilities $1,200 $1,260 $1,323 Payroll Taxes $39,120 $41,076 $43,130 Other $0 $0 $0 Total Operating Expenses $388,120 $420,376 $482,795 Profit Before Interest and Taxes $26,130 $58,083 $69,825 EBITDA $86,130 $127,083 $149,175 Interest Expense $10,000 $9,500 $8,250 Taxes Incurred $3,111 $12,146 $15,650 Net Profit $13,019 $36,437 $45,925 Net Profit/Sales 2.65% 6.43% 7.01% 7.3 Projected Cash Flow The cash flow projection shows that provisions for ongoing expenses are adequate to meet JJBs needs as the business generates cash flow sufficient to support operations. Pro Forma Cash Flow 2001 2002 2003 Cash Received Cash from Operations Cash Sales $491,000 $567,105 $655,006 Subtotal Cash from Operations $491,000 $567,105 $655,006 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $491,000 $567,105 $655,006 Expenditures 2001 2002 2003 Expenditures from Operations Cash Spending $260,800 $273,840 $287,532 Bill Payments $143,607 $186,964 $237,731 Subtotal Spent on Operations $404,407 $460,804 $525,263 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $10,000 $15,000 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $20,000 $20,000 Dividends $0 $0 $0 Subtotal Cash Spent $404,407 $490,804 $560,263 Net Cash Flow $86,593 $76,301 $94,744 Cash Balance $156,593 $232,894 $327,637 7.4 Balance Sheet The following is a projected Balance Sheet for JJB. Pro Forma Balance Sheet 2001 2002 2003 Assets Current Assets Cash $156,593 $232,894 $327,637 Other Current Assets $12,000 $12,000 $12,000 Total Current Assets $168,593 $244,894 $339,637 Long-term Assets Long-term Assets $65,000 $85,000 $105,000 Accumulated Depreciation $60,000 $129,000 $208,350 Total Long-term Assets $5,000 ($44,000) ($103,350) Total Assets $173,593 $200,894 $236,287 Liabilities and Capital 2001 2002 2003 Current Liabilities Accounts Payable $14,574 $15,438 $19,907 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $14,574 $15,438 $19,907 Long-term Liabilities $100,000 $90,000 $75,000 Total Liabilities $114,574 $105,438 $94,907 Paid-in Capital $110,000 $110,000 $110,000 Retained Earnings ($64,000) ($50,981) ($14,544) Earnings $13,019 $36,437 $45,925 Total Capital $59,019 $95,456 $141,381 Total Liabilities and Capital $173,593 $200,894 $236,287 Net Worth $59,019 $95,456 $141,381 7.5 Business Ratios The following table represents key ratios for the retail bakery and coffee shop industry. These ratios are determined by the Standard Industry Classification (SIC) Index code 5812, Eating Places. Ratio Analysis 2001 2002 2003 Industry Profile Sales Growth 0.00% 15.50% 15.50% 7.60% Percent of Total Assets Other Current Assets 6.91% 5.97% 5.08% 35.60% Total Current Assets 97.12% 121.90% 143.74% 43.70% Long-term Assets 2.88% -21.90% -43.74% 56.30% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 8.40% 7.68% 8.42% 32.70% Long-term Liabilities 57.61% 44.80% 31.74% 28.50% Total Liabilities 66.00% 52.48% 40.17% 61.20% Net Worth 34.00% 47.52% 59.83% 38.80% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 84.37% 84.37% 84.37% 60.50% Selling, General Administrative Expenses 74.74% 71.43% 71.39% 39.80% Advertising Expenses 0.49% 1.76% 6.87% 3.20% Profit Before Interest and Taxes 5.32% 10.24% 10.66% 0.70% Main Ratios Current 11.57 15.86 17.06 0.98 Quick 11.57 15.86 17.06 0.65 Total Debt to Total Assets 66.00% 52.48% 40.17% 61.20% Pre-tax Return on Net Worth 27.33% 50.90% 43.55% 1.70% Pre-tax Return on Assets 9.29% 24.18% 26.06% 4.30% Additional Ratios 2001 2002 2003 Net Profit Margin 2.65% 6.43% 7.01% n.a Return on Equity 22.06% 38.17% 32.48% n.a Activity Ratios Accounts Payable Turnover 10.79 12.17 12.17 n.a Payment Days 27 29 27 n.a Total Asset Turnover 2.83 2.82 2.77 n.a Debt Ratios Debt to Net Worth 1.94 1.10 0.67 n.a Current Liab. to Liab. 0.13 0.15 0.21 n.a Liquidity Ratios Net Working Capital $154,019 $229,456 $319,731 n.a Interest Coverage 2.61 6.11 8.46 n.a Additional Ratios Assets to Sales 0.35 0.35 0.36 n.a Current Debt/Total Assets 8% 8% 8% n.a Acid Test 11.57 15.86 17.06 n.a Sales/Net Worth 8.32 5.94 4.63 n.a Dividend Payout 0.00 0.00 0.00 n.a

Multinational Corporation and Country Nationals

In the recent decade, international human resource management (IHRM) experienced tremendous research growth due to the increase number of organizations begun to extend their businesses into overseas markets. Multinational Corporation (MNC) is the term used to describe a business with overseas operation. Some of the main reasons for the growth of interest in IHRM are: 1) the number of MNC has increased with rapid growth of global competition which resulted in increased mobility of human resource. 2) Effective HRM strategy has been recognized as determinant of success or failure of organization. ) It is more difficult to exercise control and implementation of corporate strategy over remote subsidiaries with different culture and background. (Fernando, 2006)In this article, we will discuss the difference between international and domestic human resource management and the challenges that organization faced when selecting, developing, motivating and maintaining the employees for the over seas assignment and how these issues will affect the strategy of the organization. Finally, the article will conclude that IHRM is complex, difficult and critical to global business success. Stone, 2008) It faces a lot of challenges as compared to domestic human resource management mainly due to the geographic dispersion and multiculturalism. Defining International Human Resource Management (IHRM) There is no consensus about what the term IHRM covers although most studies in the area have traditionally focused on the area of expatriation (Brewster and Harris, 1999). Taylor et al. (1996) define IHRM as a range of people management functions, processes and activities which involve consideration of more than one national context.Difference between Domestic Human Resource Management and International Human Resouce Management IHRM has similar human resource activities as domestic human resource management except that it is at a global level. Regardless of whether they are specific to one or several countries, the external constraints such as political, legal, economic and cultural can significantly influence the way HR functions are carried out and the HR manager will have to plan for the human resources, do acquisition for the right people in the right number at the right time, train and develop, aintain and motivate the employees. As stated by Dowling and Welch (2005), the complexities of operating in different countries and employing different national categories of workers are a key variable that differentiates domestic and international HRM. Domestic HRM involved employees within only one national boundary while IHRM deals with three national or country categories: the parent country where the firm is usually headquartered; the host country where a subsidiary may be located; and other countries which may be the source of labour, finance or research and development.In addition, there are three types of employees of an international firm: parent-country national s (PCNs); host-country nationals (HCNs) and third-country nationals (TCNs) (Dowling, Welch and Schuler, 1999). Dowling (1988) argues that the complexity of international HRM can be attributed to six factors such as more HR activities; the need for a broader perspective; more involvement in employees’ personal lives; change in emphasis as the workforce mix of expatriates and locals varies; risk exposure and broader external influences.Types of employees Managers can be hired three types of employees: parent country nationals; host country nationals and third country nationals. Parent country nationals (PCNs) are residents of the international business headquarter who are transferred to one of its overseas operations. Even though communications and coordination with headquarters is typically facilitated when PCNs are employed since they share a common culture and education background with headquarter but the number of PCNs employed in an organization is limited.This is due to t he high cost in relocating and maintaining them in host country and the lack of knowledge of local laws, culture, economic conditions, social structure and political processes. Host country nationals (HCNs) are residents of the host country and are the most common choice of mid-level and lower-level job. Employing HCNs is popular because they are familiar with local laws, culture and economic. Even though HCNs may be cheaper than PCNs but HCNs may not be familiar with the firm’s corporate culture nor its business practices.Third country nationals (TCNs) are citizens of neither the headquarter nor of the host country. They are most likely to be employ in upper-level or technical positions. Expatriate Expatriates are people working and residing in countries other than their native country. TCNs and PCNs are collectively known as expatriates. Organization usually takes great care in selecting expatriate as important roles are usually assigned to them and the cost of transferring wrong person overseas is enormous. It is known as expatriate failure when the expatriate return homes before the assignment is completed.The cost of failure would incur direct and indirect cost to the organizations and the expatriate. The indirect costs are harder to quantify in money terms and it includes causing the organization to lose its market share and expatriate may lose self-esteem. Dowling & Welch (2005) had concluded that factors moderating performance would include: spouse/ partner dissatisfaction; inability to adapt; difficulties with family adjustment in the new location; culture and language difficulties. RecruitmentRecruiting and then deploying people to positions where they can perform effectively is a goal of most organizations whether domestic or international. Recruitment in international context is no easy job. Cross-national differences in work values influence how attractive a firm is perceived to be within any given culture because what individuals want from an employer may vary across culture. (Caligiuri, Lepak & Bonache, 2010) Therefore, companies should adopt different sets of selection practice and recruitment message based on the culture of the country they are recruiting.In MNCs, most positions are filled by HCNs as it is cheaper than hiring expatriate and they are more familiar with the local culture, economics and business environment. But it is still common to employ expatriate in management role since they had better understanding of the culture and business background. Expatriate selection is much more difficult than domestic selection. The HR manager may have stringent screening process as these expatriate will be mostly being employ in management level that has greater responsibility for the business.Therefore, only experienced candidates will be selected for overseas assignment. On the other hand, candidates are becoming increasingly selective regarding their choice of overseas assignment making it more difficult for expa triate to be employed. Selection is often conducted through supervisor’s interview of candidates. With expatriate being employed in management role could mean that they are the ones interviewing the HCNs. In this case, it would be especially challenging as behaviors may be interpreted through a cultural lens and unintended inferences may be made.Caligiuri, Lepak & Bonache (2010) had concluded that firm that dedicates the time to answer the strategic questions about employee competencies globally – and, in turn, effectively selects for them within the various countries where it operates – has a competitive advantage within its global workforce for implementing global business strategy. Training and Development The objective of training and development is to foster learning among the organizational members and to develop enriched and more capable workers, who, in turn, can enhance organizational competitiveness and effectiveness.As compared to domestic organizatio n, multinational organization faces a number of unique challenges in training and developing function. This is due to that multinational firms differ in their operations from those of domestic firms in terms of geographic dispersion and multiculturalism. (Adler, 2002) It may be difficult when translating training material; therefore it is important to understand the importance of sensitivity to local language and culture. Sims (2002) states that how people learn and the methods of training with which they are comfortable vary across cultures.In order to achieve success in oversea assignment, it is very important to train the employees based on the economics and practices of foreign countries. Dessler G. (2008), concluded that overseas candidate required special training like focusing on the impact of cultural differences, provides factual knowledge about the target country and provides skill building in areas like language and adjustment and adaptation skills. It is very challenging when come to designing training and development programs for multinational company. A unique training program for each subsidiary is needed based on the country language and culture.Performance Management Performance Management (PM) is a strategic HRM process that enables the immediate supervisor to evaluate the employee’s job performance and contribution towards the organization’s goals and rewards as outcomes of performance evaluation or appraisal. Training and development plan can be derived from PM to enhance the performance of the employees. As is stated by Armstrong (1994), PM involves the links to organizational strategy, setting individual performance goals, providing regular feedback on progress towards those goals, providing opportunities for improving and linking result and rewards.The scope of PM in multinational companies (MNCs) is much broader and complicated that in domestic companies. This is due to that MNCs operate in many nationals with various type s of employee groups. (Scullion H. & Linehan M. , 2005) Generally, an employee’s performance on the job is affected by their skills, perceptions, relationship with peers and superior, personal values, levels of motivation and commitment, the work environment and the level of challenge assigned to them.In a global context, this multiplicity of factors is further complicated by differences in culture, education, values and long distances between superior and subordinate. Fernando K. V. (2006), had concluded that the challenge of organization’s when it comes to performance management is to retain and develop their talent; enable the mass majority to perform at their best level; align performance at all levels globally to effectively deploy strategy; recognize and motivate performance at all levels and help differentiate employee performance.PM in IHRM will require different program and criteria based on the country culture to effectively measure the performance of the emp loyees. Simply exporting the head office program may end in disaster if it is not culturally sensitive. (Stone, 2008) Compensation Compensation is one of the most important HRM functions. In both IHRM and domestic HRM, compensation has the same common objectives that are to attract and retain the desired quality of employees and motivate employees to improve their performance and contribute their best to help to achieve the organization’s business objectives.According to resource-based theory, organizations that effectively apply appropriate compensation policies to maintain and retain knowledgeable and skilled employees can serve to protect this source of sustainable competitive advantage. As is stated by Dowling (1988), the key differences for HRM in MNCs lie in the increased scope; perspective and level of involvement required in employees’ live as well as the level of risk. Compensation in IHRM has the greater risk.The risk increased by the complexities of operatin g within multiple diverse economic, employment and taxation regimes and through direct and indirect cost inefficiencies associated with international staff transfers and also with the implementation of an international compensation strategy. (Harzing & Ruysseveldt, 2004) In IHRM, the compensation strategy is influenced by a list of internal and external variable. Some of the variables would include: (internal) capacity to pay; competitive strategy; organizational culture; (external) labour market characteristics; local culture and parent nationality.The most challenging part is to reduce the risk of perceived inequities by maintaining companywide pay scales and policies. By doing so, the organization can ensure that the same job grade will be paid within the same narrow range. Implementing companywide pay scale might not be fair for those who are being transferred to country, like Japan, where the cost of living is higher. One way to handle the problem is to pay a similar base salar y companywide, and then add on various allowances according to individual market conditions. (Infante V. Determining equitable wage in many countries is no simple matter due to the differences in culture and market characteristic. As a result, one of the greatest difficulties in managing multinational compensation is establishing consistent compensation measures between countries. (Dessler, 2008) Industrial relations It is difficult to compare industrial relations systems and behavior across national boundaries as national differences in economic, political and legal systems produce markedly different industrial relations systems across countries.Trade unions may limit the strategic choices of multinationals in three ways by influencing wage levels to the extent that cost structure may become uncompetitive; by constraining the ability of MNCs to vary employment level at will and by hindering or preventing global integration of the operations of multinationals. Trade unions will be a ble to cause the MNCs to suffer labour cost disadvantages which may narrow their strategic options or caused industrial or political problems. Therefore the HR managers should ensure that the practices adhere to and reinforce strategicHRM objectives and policies and are in harmony with the desired corporate culture, concessions granted in one location do not create damaging precedents for the rest of the organization and ethical and legal obligations are met. (Stone, 2008) MNCs must be well versed in international industrial relations and be aware that each industrial relations system is unique in order to translate organizational HRM objectives and policies into appropriate industrial relations practices on a worldwide scale. ConclusionIHRM is the handling of HRM activities at a global level. It is complex, difficult and critical to global business success. (Stone, 2008) It faces a lot of challenges as compared to domestic human resource management mainly due to the geographic disp ersion and multiculturalism. Individual business units in various countries may have different HRM strategies due to the different in culture. Although the strategies might be different but somehow it is still intact with the global strategy as define by international business headquarter.With this, the MNCs will have competitive advantage as compared to its competitors who are using HRM strategies at a national level. Challenge increases as they have to handle employees from three different nationals: parent country nationals (PCN), host country nationals (HCN) and third country nationals (TCN). Organization takes great care in selecting employees from parent country and third country which is known as expatriate. This is because the failure of the expatriate may cost the organization to lose its market share and the expatriate may lose self-esteem.Training and performance management in IHRM faces a number of unique challenges due to the different in culture. Different program need s to be design for different subsidiary. Simply exporting the head office program may end in disaster if it is not culturally sensitive. (Stone, 2008) Compensation is one of the most important functions. The most challenging part in IHRM is that it needs to reduce the risk of perceived inequities by maintaining companywide pay scales and policies.Various allowances should be added on top of the basic salary especially for those expatriate who are located in countries with higher cost of living. Last but not least, MNCs need to be well versed in international industrial relations in order to translate organizational HRM objectives and policies into appropriate industrial relations practices on a world-wide scale.

Why Intelligence Agencies And Analysts Exist - 1468 Words

One of the four primary reasons why intelligence agencies and analysts exist is to support the policy process, which consequently impacts national security decisions. As a result, intelligence community analysts and decision makers must maintain a relationship with policy makers. However, there is an ongoing debate within the intelligence community, academic institutions, and the public regarding the distant and proximate models of this relationship. In an effort to determine the best possible relationship model between intelligence analysts and policy makers, the roots of both the distant and proximate models will be discussed; then, a stance will be taken on what the preferred model should be and supported based off the evidence†¦show more content†¦Additionally, the distant relationship model enables analysts to work on a problem set of their choice as long as it is within the bounds set by their intelligence manager. While enabling analysts to have such freedoms is perceived as a positive it can also be a negative. Intelligence analysts own agenda can take the forefront while their consumers needs lose the necessary precedence. Also as a result of being too distant from the policy maker, the needs of the policy maker may not be known; therefore, intelligence may not be produced on a problem set of interest to the policy world. According to Johnson and Wirtz, the second school of thought, the proximate model, receives its origins from Robert Gates, former Director of Central Intelligence and Secretary Of Defense. In the mid-1980s Robert Gates, while serving as the Deputy Director for Analysis at the Central Intelligence Agency (CIA), spearheaded the notion of actionable intelligence, when he became upset with the agency s analysts, who blatantly disregarded request to fulfill policy makers’ needs. Gates argued that by producing actionable intelligence, intelligence analysts must remain cognizant of policy maker needs, resulting in a more relevant finished intelligence product. Thus, the proximate relationship model between intelligence analysts and policy makers was formed. As is the case with any model, the

Prostitution And The Worlds Oldest Profession - 2225 Words

When looking into Prostitution women are usually thought to be the lowest form a part of the human species, people make assumptions as to why a women would even bother with the idea of subjecting herself to harsh treatment by others, people often correlate the idea of prostitution with human trafficking. That each of these categories are of association, prostitution is â€Å"the practice or occupation of engaging in sexual activity with someone for payment.† While human trafficking is â€Å"the illegal movement of people, typically for the purposes of forced labor or commercial sexual exploitation.† Each of these subjects demonstrates different meanings but express the same sense of ideas, which will be looked into too. â€Å"Prostitution is said to be†¦show more content†¦One reason for this is that human children require care for a long time. So, a female with child must be able to trade sex for protection and food since she cannot hunt effectively with a child. Historically speaking, prostitution is as old as civilization. Prostitution in 1949, the United Nations had adopted a resolution in favor of the decriminalization of prostitution, which has been sanctioned by fifty countries, meaning that it was approved, in that time era the average age of someone entering prostitution was an average of fourteen years old- that was during the approval of it- regardless of that there was till the fear of predators, due to that at least seventy-five percent of prostitutes worldwide were sexually and physically abused children who felt the need to turn into that lifestyle. The majority of the younger prostitutes began to acquire drug or alcohol addiction due to the abuse. According to readings in H.G. Cocks and M. Houlbrook, author the personal dangers of sexual advertising also known as prostitution in Britain during the early twentieth century; As stated â€Å"Prostitution is rooted in highly gendered and moral beliefs about female and male sexuality, women’s labour and the status of women within society, and throughout history people have been seeking explanations for its existence and, most of all, for why women sell sex.† (Laite, 2004)