Organisational Transformation in Practice Essay

Organisational Transformation in Practice - Essay Example My role in this acquisition and change process has provided immense learning experience in terms of organisational change process and people’s psychology. A patchwork of this experience combined with learning from the module will be elaborated in this discussion. Literature findings will be confined to organisational change and its psychological implications on employees. Attempt will be made to provide a few probable and implementable suggestions for situations that did not conform to the need, as identified in literature. Background of the company: Armen Technologies (AT) is a multinational company that provides information technology enabled business services in four regions of the world including Europe, North Africa and South East Asia. Headquartered in Beijing, AT has more than 5000 employees. Its business volume and spread were enriched when AT acquired the IT Company VTL Solutions. This acquisition process resulted in overall growth of AT, but after much struggle. Cont ext: At the outset, this acquisition process was absolutely strategic and involved many negotiations during long period. From HR perspective, this acquisition seemed extremely lengthy and complex process. The acquisition process that began with various types of negotiations followed into aligning the acquired company’s businesses, clients, customers and employees with the acquiring company’s systems. One of the most significant parts of this acquisition was reinstating the confidence of both companies’ employees at all locations. This task required a strategically planned approach and to be executed by highly experienced personnel. While the general transformation process during and after the acquisition itself was complex and multidimensional event, transformation with respect to processes and systems in the human resources perspective was equally challenging. On a broader note, the HR aspect involved activities such as integration and alignment and corporate c ommunication along with assistance in implementation of change strategies. Corresponding literature findings: Mergers and acquisitions act as change agents in corporate restructuring (DePamphillis, 2011; p.4). Organisational changes that follow mergers and acquisitions are usually uneven and face numerous obstacles. According to Marks and Mirvis (2010), the fervor of success after acquisition usually infuses equally faster in the acquired company but in a retrospective manner, usually in the form of patronizing attitudes of its employees. To add further, unilateral integration of organisational systems and policies leads to greater turbulence in the acquired company. Culture-fit is a core ingredient of organisational sustenance post acquisition (DiGeorgio, 2002). Studies related to organisational change and mergers and acquisitions provide vast and diverse views that are mostly practically implementable and have been successfully implemented in many situations. For instance, various change implementation models that have been proposed include McKinsey’s 7-S framework, Kotter’s (1996) eight-step model, Lewin’s 3-phase model of change ADKAR model etc (Hiatt & Creasey, 2003; Cameron & Green, 2004). All these models provide comprehensive and systematic methods to implement change. Several other models are suggested to diagnose change, such as, Kurt Lewin’s force field analysis model (Cameron & Green, 2

Vulcanicity Case Essay Example for Free

Vulcanicity Case Essay Volcanoes mostly occur at plate margins. They can also occur at hot spots and in rift valleys. The most active volcanic zone is the Pacific Ring of Fire around the Pacific plate. Here plates are colliding or separating. At active points on these plates volcanic mountains are formed, e.g. Nazca Plate and South American Plate, where plates separate, e.g. Pacific and Nazca Plate and in rift valleys, e.g. African Plate, Kenya. The most active area on the globe is the western rim of the Pacific Plate stretching from Russia to New Zealand. Several findings relating to earthquakes and volcanic activity can be explained by plate tectonics. If you follow news stories of earthquakes, you may begin to wonder why such places as California or Japan have so many earthquakes, whereas the north eastern United States or Western Europe have so few. The fact is that earthquakes occur along belts and the vast majority of these belts lie on the boundaries of the earth’s tectonic plates. The same is true of volcanoes and locations known for earthquakes, such as the Philippines, have many volcanoes.The Hawaiian Islands are located near the centre of the Pacific Plate. These islands of Hawaii experience plate movement, helping to form the volcanoes that created those islands. At the south of the island group, many volcanoes are still active, while those to the north are mainly dormant. The reason for this is that the Pacific Plate is moving north over a stationary lava source (mantle plume) below Hawaii. The south islands remain above it, while the northern islands have moved away.The Oceanic crusts are tend to be youngest at the centre of ocean basins and along mid-ocean ridges, or along submarine ridges where new seafloor is created. There is much volcanic activity here as massive fissure eruptions frequently occur. Crusts of oceanic and continental type differ by their thickness and by composition. Basalt, an igneous rock (from the cooling of magma), makes up the SIMA, whereas much of the continental crust (SIAL) is made up of granite, also an igneous rock. Where the crust is thin volcanic activity is more clearly seen.

Analysis Of Amerindian Perspectivism Philosophy Essay

Analysis Of Amerindian Perspectivism Philosophy Essay Brazilian anthropologist Viveiros de Castro has been an essential force in new strands of anthropology within the last decade, and his foremost contribution has been the development of Amerindian perspectivism. Viveiros de Castros objectives were to produce a more generalised framework of Amazonian cosmologies and shamanistic practices, with an aim to dispose of the nature versus culture dichotomy that had always prevailed within the discipline of anthropology. By rediscovering the notion of animism, Viveiros de Castro was able to formulate new modes of relation between humans and non-humans, and perspectivism may be seen as simply a potent rendering of animism. This essay will explore the comparisons that have been made in recent ethnography between Viveiros de Castros Amerindian perspectivism and the application of perspectivism to other parts of the world. This will ultimately result in the questioning of whether perspectivism can, in reality, be labelled a theory. Initially an ex amination of Viveiros de Castros analysis of Amerindian perspectivism is crucial in an attempt to draw comparisons with the deployment of perspectivism in ethnography within northern Asia, in particular Mongolia and Siberia. Viveiros de Castro purports that his development of the notion of perspectivism forms a vital component of most Amerindian cosmologies, and is founded upon spiritual unity and corporeal identity. In opposition with the distinction between nature and culture, Viveiros de Castro illuminates a contrastive feature between Western and Amerindian cosmologies. Anthropology itself centres on the multiculturalist notion to the nature vs. culture dichotomy; the idea that there is one universal nature and many cultures, as building blocks structured upon that which is pure and unifying; nature. This approach implies the universality of the body, and the subjective distinctiveness of spirit and meaning. The concept of multiculturalism has consistently been applied to the demographic constitutions of a particular place with multiple ethnicities and religious groups, and to notions of identity (Visweswaran, 1998). Viveiros de Castro proposes that for Amerindian cosmologies however, an inversion of the multiculturalist notion, that is multinaturalism. Multinaturalism is the conception of spiritual unity and corporeal diversity, the unifying and objective being culture and the subjective distinctiveness of nature; bodies (Viveiros de Castro, 1998). Amerindian cosmologies share mythology and the notion of a creation myth that there was once an original state of undifferentiation between humans and animals, and this serves to unfold Amerindian perspectivism. This is the shared mythological belief that animals are ex humans, and that the original common condition that both humans and animals shared was humanity rather than animality (Viveiros de Castro, 1998). This origin myth can be employed to explain the general meaning of perspectivism. Viveiros de Castro states that animals and spirits see themselves as humans: they perceive themselves as anthropomorphic beings. their social system as organized in the same way as human institutions are (1998:470). This is the principal idea of perspectivism; that nonhumans see the world as humans do, but what they see differs from what humans see because of the distinct medium through which they see things differs from the medium through which humans see things (Pedersen, 2001). Every being t hat has a soul is capable of having a point of view, and it is the point of view that creates the subject. The point of view is located within the body, and differences between viewpoints concern the differentiation between bodies (Viveiros de Castro, 1998). What Viveiros de Castro refers to as the body is an assemblage of affects or ways of being that constitutes a habitus (1998:478). The concept of habitus has most recently been elaborated by Bourdieu (1972) as a system of dispositions in response to determinate structures and other fields that are neither wholly voluntary nor involuntary. Acquired dispositions or ways of being include taste, communication and habitation. To tie this in with multinaturalism, every subject creates their own conception of nature. Viveiros de Castro refers to the form of a being as like a piece of clothing which masks an internal human form that is only visible to those within the same species or trans-specific beings such as shamans. It is not so much that the body is a clothing but rather that clothing is a body (1998:482). An animals clothing (their body) is not simply manipulated as a disguise, but rather their equipment that differentiates them from one another, and provides them with their habitus. The internal human form is the beings soul or spirit (1998). By undergoing metamorphosis, the being sheds its clothing and, through a process of transformation, adopts the point of view of another being. The shaman is the only being that is capable of assuming the point of view of the Other; the extra-human animal, and returning back to its original state of being unharmed (Viveiros de Castro, 1998). Amerindian perspectivist cosmologies bear striking similarities with the notion of animism, initially proposed by Tylor in the nineteenth century. Tylor attributed animism to the almost universally held beliefs of primitive people that certain objects and persons were animated by something incorporeal called spirit' (Kraus, 1971:487). Descola (1992) developed this idea of animism that all spiritual entities are similar in that they share spiritual features, with the difference being the body that they are endowed with (Latour, 2009). Thus, animism would appear in accordance with Castros proposition of multinaturalism within Amerindian cosmologies. In contrast with the multiculturalist notion of the nature vs. culture dichotomy, animism holds society as the unmarked pole, as the unifying dimension, rather than nature. Totemism, on the other hand, is the conception that individuals and clans share kinship with other forms of non-human being. Levi-Strauss (1962) discusses totemic classifications as a form of organisation which emphasises discontinuities between species to confer a conceptual order on society. The totem is a non-human being which is normally accompanied by a totemic myth, and they are manipulated to make the social world a more coherent classificatory system. Therefore, there is a very striking difference between animism and perspectivism, and totemism; in totemic societies the non-human being is regarded as a sign, and in animic and perspectivist societies, the non-human being is regarded in terms of the relationship it makes available (Pedersen, 2001). It will be brought up later on with an analysis of northern Asian cosmologies, that some ontologies in northern Asia are predominantly animistic, and some predominantly totemistic. Nevertheless, it is undeniable that Viveiros de Castros notion of perspectivism is wholly an animistic concept. His analysis of Amerindian perspectivism has been supported by Pelusos research undertaken in Peru. Peluso critically discusses her ethnography on dream narratives amongst the Ese Eja, an Amazonian community, and acknowledges that multinatural perspectivism is present within the ontology of dream narratives (2004). Naming dreams are common for the Ese Eja, and reflect multiple overlapping realities of time and space, acting as a reminder for its subjects that transformations are possible between multiple worlds. Eshawa, for the Ese Eja is the concept of personhood that connects the self with all species and the spirit world (Peluso, 2004:2). The dreams always involve an interaction between the animal and the dreamer, and involve the animal transforming itself into a child and addressing the dreamer by the appropriate kin term. This action eludes the mother/father/grandparen t dreamer to the childs dream name, and they must use this name for everyday life (Peluso, 2004). Viveiros de Castros notion of perspectivism in Amazonia is quite clearly at work here. People validate the links between dream names and their namesake animals through perceived shared physical and character traits, relating to Viveiros de Castros corporeal affects that form the distinctive viewpoints of subjects. Similarly, multinatural perspectivism such as the dream world, implies that all subjects (human or not) share personhood and interact socially as enacted in dream narratives. (Peluso, 2004:9). The dream world allows the capacity for carrying over the same viewpoint into different cross-realities, and dreams are sources of knowledge and channels of communication between multiple worlds, unhindered by physical or ontological distance (Peluso, 2004). Pelusos ethnography based on the Ese Eja community in Peru is a fine example of Viveiros de Castros Amerindian perspectivist cosmology in practice, but the question still remains as to whether perspectivism can be applied to another part of the world other than Amazonia. The vast majority of the rest of this essay will attempt to apply perspectivism and its deployments through ethnography, to two very different regions of northern Asia; Mongolia and Siberia. Pedersen (2007) has written extensive ethnography concerning the Darhads of Mongolia, and their relationship with perspectivism. It is clear that Viveiros de Castros Amerindian perspectivism is prevalent within Darhad animist cosmology, but at the same time there are several distinctions that must not be overlooked. A stark contrast between Darhad and Amerindian cosmology is that the Darhads do not share the conception of a creation myth; an original state of undifferentiation (Pedersen, 2007). Viveiros de Castro suggests that mythology is a precondition for perspectivism, in that the period from whence everything was undifferentiated and humanity, is crucial for spiritual unity and the universality of beings (1998). Nevertheless, Darhad cosmology is amythological yet animist and comprises multiple points of view; different perspectives unchanging over time. The majority of the Darhad animist cosmos is perceived as an unmarked territory, and that it is along specific paths where the social lives of beings occurs. Therefore Darhad cosmology itself is not one unified whole, but rather many parallel worlds, with each parallel world containing the totality of relations enacted through a given point of view (Pedersen, 2007). Similarities can be drawn here with Amerindian perspectivism in that exchanges of perspectives between different kinds of beings are being experienced by the Darhad people, however there appear profound differences. The Darhads nomadic landscape is organised according to the constellation of centres within it, with the nomadic households as physically moving entities, and sacred stone cairns such as those on the top of mountains as fixed components. All nomadic movements centre around these gravitation points, for the rest of the nomadic landscape is void (Pedersen, 2007). The Darhad conception of the landscape appears mo re of a totemic reality than an animist one in this sense. Rather, as a discontinuous grid that places beings in relationships of homologous differentiation (Holbraad Willerslev, 2007:331). Viveiros de Castros Amerindian perspectivist cosmology amounts to a boundless whole, a continuous universe where all beings relate to one another, whereas Darhad perspectivist cosmology lacks this perception. The narrative of the Badagshin that Pedersen (2007) recollects however, can be seen as the representation of a distinct form of Mongolian perspectivism that draws parallels with Viveiros de Castros Amerindian perspectivism. The Badagshin are half-people non-human beings that appear most frequently to Darhad hunters. Similarly with Amerindian perspectivism, the shaman is the only being capable of undergoing complete metamorphosis and returning back to their original state of being unharmed. Therefore for Darhad hunters, adopting the point of view of a nonhuman being is something that should be avoided at all costs. Pedersen recalls an account of a Darhad hunter and his friend encountering a Badagshin whilst traversing the nomadic landscape. For the hunter, the Badagshin appears before him as half a deer, yet for his friend it appears before him as half an old woman. Within a few weeks the friend is dead. This phenomenon may be explained in terms of the Darhad perspectivist cosmology i tself, for the friend has undergone transformation from human being to non-human being through the complete adoption of the Badagshins point of view and crossed through to the other side, resulting in death. It is not the hunter himself comprising two perspectives, but rather the cosmology itself, and by being seen only in the form of halves, they reveal in the form of their virtual, invisible halves an occult vicinity between the human and the non-human (Pedersen, 2007:323). Exchanges of perspectives for the Darhad appear essentially abrupt, as one leaps from one form of being to another, with the nomadic void playing the role of a trampoline, as one jumps between finite worlds (Pedersen, 2007). A key difference between Darhad perspectivism and Viveiros de Castros Amerindian perspectivism is that the Darhads encounters with spiritual beings are always incomplete, as the Badagshin example illustrates. Humphrey (1996) also reveals that encounters with spiritual beings amongst the Daur of Mongolia tend to always be incomplete and intermitted. Amerindian perspectivism appears more symmetrical and horizontal, whereas Darhad perspectivism appears asymmetrical and transcendent (Holbraad Willerslev, 2007). The Mongolian shamans ability to undergo various metamorphoses and gain the perspectives of another being can be directly linked to the evasion of the hierarchy within a society that is highly rigid (Pedersen, 2001). As a consequence of this spiritual hierarchy, exchanges of perspectives are vertical rather than horizontal, a direct contrast to Viveiros de Castros Amerindian perspectivism. Holbraad and Pedersen (2007) suggest that in Inner Asia, beings can become other not because they are themselves already other (as in Viveiros de Castros Amerindian perspectivism), but rather because the perspectives that they can occupy remain other to them (p.331). These are transcendental perspectives and reflect more of a totemic reality than an animistic reality apparent in Amerindian perspectivism. It would appear that Mongolian perspectivist cosmology is very different to that of Amerindian perspectivism. Much ethnography in Siberia has revealed a more animistic cosmological perspectivism, and yields more similarities to Viveiros de Castros Amerindian perspectivism. Stepanoff (2009) studied cannibal shamans in Siberia and adopts a perspectivist approach to elucidate that the shamans become cannibals because they see humans as prey animals. Similarly, Bogorazs (1904-1910) ancient ethnography on the Chuckchee can be seen to draw parallels with Viveiros de Castros Amerindian perspectivism in that others, in this case the kely spirits, see themselves as humans and humans see themselves as others. Kely spirits live like humans in villages and hunt humans which they call little seals. Social relations in Siberia appear horizontal rather than vertical, which, as a condition for animism appears to align them with Amerindian perspectivism rather more than their Mongolian neighbours. Likewise, the space constituted by human beings and non-human beings amounts to a boundless whole rather than a discontinuous grid (Pedersen, 2001). Pedersen (2001) puts forward the notion of animist analogous identification in Siberian cosmology, which holds the viewpoint that one has the ability to imagine oneself in someone elses position, and the ability to imagine someone else in ones own position. This correlates with Viveiros de Castros Amerindian perspectivism. Thus, I would argue that Siberian perspectivist cosmologies are much more similar to Amerindian perspectivist cosmologies than their Mongolian neighbours. However, it is challenging in itself to stretch Viveiros de Castros concepts that fit Amerindian cosmology to other parts of the world due to the fact that there is so much differentiation. The question ultimately comes down to whether Viveiros de Castros perspectivism can be seen as a theory or not, and whether it should be applied to other parts of the world. Holbraad and Willserlev (2007) suggest that Viveiros de Castros Amerindian perspectivism may be regarded as a theory due to the fact that it is an essentially intellectual artefact: theory is born of the anthropologists mental effort (p.330). However, this particular theory appears somewhat constrained by its ethnographic material of which the theory was conceived of, and the context from which it derived from cannot necessarily be applied to other ethnographic contexts. This does not detract from the fact that Viveiros de Castro has put forward an Amerindian perspectivist theory, which does exactly what it says on the tin.

Essay --

Money can’t buy happiness. Or can it? In the modern society that we live in nowadays, the theory of consumerism and a person’s happiness, or quality of life, are inseparable, especially in Canada. So much that consumerism seems to be dominating every aspect of our Canadian lifestyle, even the aspects that weren’t by the slightest amount affected by the behavior of consumers ten years ago. Consumerism is a theory that greatly contributes to the enriched quality of life that Canadians enjoy. This economic theory allows for consumer behavior to be central to economic decision-making, higher employment rates to be established, and to initiate a significant increase in globalization. Consumerism is defined as linking prosperity to consumer demand and making consumer behavior central to economic decision-making. This means that we, as consumers, have the ability to influence the quality of life, citizenship, and identity of ourselves and the people around us. Based on our values and beliefs about our identity, health and safety, employment, the environment, and product marketing, we can have our say about a certain product by influencing the demand of it. This can be accomplished by deciding whether or not we want to purchase that product. However, the degree of influence can by greatly augmented by use of boycotts, when a group of consumers choose not to buy or use a product or service to bring about change. We can use this strategy to substantially draw the attention of the targeted company and push them to consider the demand of us consumers and change their actions accordingly. For example, in the year of 2007, the Animal Rights Group initiated a boycott towa rds several cosmetic companies to stop the testing of cosmetics on animals... ...e goods that are shipped out of our ports to countries all around the world. The interrelation of consumerism and globalization helps to create a global bond that most Canadians would be distressed to live without. Consumerism has proven to be central to today’s society and economy. Its promotion of consumers’ interests allows us, as consumers, to manipulate different aspects of the world’s businesses and markets. The chain effect of consumerism is a big factor in maintaining Canada’s employment rate, and increasing each person’s financial status. Globalization and its connection with consumerism works to bond people of all different origins, and spread the world’s markets. Consumerism proves to be a major component of today’s society, enhancing quality of life for Canadians. It could even be thought of as a culture that we all live upon, that links us together.

Proton Strategic Managemen

 « Task Management – Antiques-2000 | Main | Global Marketing Strategies :Case Study of Peninsula Hotel Group  » November 25, 2010 Strategic Management of Proton, Malaysia | 4| | Strategic Management: Proton, Malaysia Table of Contents TOC o â€Å"1-3† h z u 1. Introduction. PAGEREF _Toc226437728 h 3 2. Background of Proton. PAGEREF _Toc226437729 h 3 3. Macro-Environment Analysis. PAGEREF _Toc226437730 h 5 3. 1 Political PAGEREF _Toc226437731 h 7 3. 2 Economic. PAGEREF _Toc226437732 h 8 3. 3 Social PAGEREF _Toc226437733 h 8 3. Technological PAGEREF _Toc226437734 h 9 4. Micro-Environment Analysis. PAGEREF _Toc226437735 h 10 4. 1 Strengths. PAGEREF _Toc226437736 h 11 4. 2 Weaknesses. PAGEREF _Toc226437737 h 11 4. 3 Opportunities. PAGEREF _Toc226437738 h 12 4. 4 Threats. PAGEREF _Toc226437739 h 13 5. AFTA Compliance Problems. PAGEREF _Toc226437740 h 13 6. Industry Analysis. PAGEREF _Toc226437741 h 15 6. 1 Threats of New Entry. PAGEREF _Toc226437742 h 16 6. 2 Threat of S ubstitution. PAGEREF _Toc226437743 h 16 6. 3 Buyer Power PAGEREF _Toc226437744 h 17 . 4 Suppliers Power PAGEREF _Toc226437745 h 17 6. 5 Competitive Rivalry. PAGEREF _Toc226437746 h 17 7. Recommendation. PAGEREF _Toc226437747 h 18 8. The Strategic Triangle. PAGEREF _Toc226437748 h 18 9. Aligning Organization Wide Strategies. PAGEREF _Toc226437749 h 19 10. Adaptive Processes. PAGEREF _Toc226437750 h 20 11. Metrics/Performance Measures. PAGEREF _Toc226437751 h 20 12. Conclusion. PAGEREF _Toc226437752 h 21 13. References. PAGEREF _Toc226437753 h 23 14. Appendices. PAGEREF _Toc226437754 h 25 14. Appendix A: Strategic Triangle. PAGEREF _Toc226437755 h 25 14. 2 Appendix B: Balance Score Card Dimension of Proton. PAGEREF _Toc226437756 h 26 Table of Table TOC h z c â€Å"Table† Table 1 PEST Analysis. PAGEREF _Toc225758233 h 6 Table 2 SWOT Analysis. PAGEREF _Toc225758234 h 11 Table of Figures TOC h z c â€Å"Figure† Figure 1 Porter's Five Forces. PAGEREF _Toc225758249 h 16 1. In troduction The automotive industry in Malaysia is considered as one of the most vital and significant strategic industries in the manufacturing sector (ESCAP 2009). Malaysia is predominantly a passenger car market and the industry is considered as a domestic market-oriented (ESCAP 2009). The primary reason why passenger care market is prominent in the country is because of the economic status of the country. The objective of this paper is to focus on the case of Proton in terms of facing different dilemmas in the local and global automotive industry. Furthermore, it will use the Delta model in order to analyze the performance and recommend different actions to be done in order to maintain the position of the company in the market. 2. Background of Proton Proton or synonyms for Perusahaan Otomobile Nasional Berhad was incorporated on May 7, 1983 in order to manufacture, assemble and sell different motor vehicles and other related products which include different accessories, spare parts and other important components (PMProject n. d. ). Based on the technology and parts from Mitsubishi, the production of the first model or the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam Selangor by the Malaysian Prime Minister Dato’ Seri Dr. Mahathir Mohamad (Histomobile n. d. ; PMProject n. d. ). At first, all of the components of the car were entirely manufactured by Mitsubishi, but the local part has been able to be used, as technologies were transferred and skills were gained. In January 1989, the 100,000th of Proton Sage was produced (Histomobile n. d). At the end of 1990s, the logo of the car was changed from the Malaysia’s coat of arms and a fourteen-pointed star to a stylized tiger head. In 1993, a new model called Proton Wira was introduced that was based on the design and engineering of Mitsubishi Lancer/Colt where in more than 220,000 units were sold from 1996 to 1998. Together with that, the Proton Perdana that was based on the Mitsubishi Eterna was produced in 1994 that was intended for higher market (Histomobile n. d. ). In 1996, an acquisition of Lotus technologies form Bugatti, Proton helped the company to have an additional source of engineering and automotive expertise which enables the company to produce the Proton Gen-2, to become the first of cars to be manufactured and assembled at the new manufacturing plant in Tanjung Malim, Perak which is part of Proton City development project, which was opened in 2004 (Histomobile n. d. ). In 2004, the company purchased a major stock in MV Agusta of Italy which is the manufacturer of MV Agusta, Husqvama and Cagiva motorcycles. Later on, the company sold off its 57. 7% share to MV Agusta to another Italian company for a token of one Euro. Because of the heavy debt by MV Agusta, the selling gives Proton the opportunity to write off the losses off its book. During the same year, the company announced about their planned partnership with the Volkswagen AG of Germany. Under the said partnership both of the company will be able to take advantage of both their strengths. For the company, Volkswagen will be able to share knowledge, expertise and technologies, while the company can offer spare capacity at the latter’s Tanjung Malim in order to assemble cars for export o the South East Asian market, where in the German auto giant has a weak presence. However, on January 13, 2006, Volkswagen had announced that the negotiation of the partnership has failed due to the different reasons, primarily the fact that the plans of the company were different and clashes with the terms and conditions that are being offered by Proton (Histomobile n. . ). In 2002, Proton held a high market share of more than 60% in Malaysia. However due to the different factors such as the economic and social aspects, the said share was reduced to 30% by 2005. The said number will further reduce in the next years due to the AFTA which mandates reduce tariffs to maximum of 5% (Histomobile n. d. ). 3. Macro-Environment Analysis Every industry is being affected by the developments in the macro-environment. Fundamentally, all organizations are affected by the same developments; however, the extent to which organizations successfully cope or take advantage of these developments differs in substantial manner. Furthermore, developments may potentially influence one industry more severely than other. Therefore, it is vital for organizations to identify or anticipate the macro-developments in order to assess their potential impact on the industry and the organization (Nijssen ; Framback 2000, p. 53). Table SEQ Table * ARABIC 1 PEST Analysis PEST Analysis| Political * AFTA; * different environmental Policies| Economic * global and local economic crisis; * slowing growth of Malaysian economy; * poor consumer sentiment and changing buying behavior of the consumer; * increasing competition; * huge total labor force;| Social * huge population; * car ownership (1:5); * set on big-ticket items; * growing knowledge and concern of the people towards the environment; * impact of the image of the brand; * slowing/decreasing buying pattern of the consumer. Technological * competing development in technology; * maturity of technology; * intellectual property; * potential for innovation and development; * maturity and capacity of manufacturing| Table 2 shows the different factors which affect the operation of Proton and other major players in the industry in the country. Thus, all of the factors can be grouped into 4: political, economic, social and technological. 3. 1 Political One of the important factors to consider is the presenc e of AFTA or ASEAN Free Trade Area. Currently, most of ASEAN region are free trade or 96% of the entire ASEAN trade. AFTA was established in January of 1992 in order to eliminate tariff barriers among the Southeast Asian countries. It planned to reduce tariffs to zero to 5% in 15 years among the six nations through a common effective preferential tariff (Ghani ; Zainuddin 2008). Because Malaysia has two national carmakers which are Proton and Perodua, and the government wants to protect their interests. Unfortunately, the said development could prove to be a temporary solution. If we are going to check on the high selling prices of the national cars of Malaysia because of high production costs and lack of vendor efficiency, there is a big possibility that the local market will be ruled by imported cars. As a result, there will be increase in the number of the vehicles on the road and there will be a glut of used cars in the market, because people will tend to trade their cars for cheaper and imported brands (Frost ; Sullivan 2002). On the other hand, the issue regarding the environment is vital because it is considered as one of the most talk about topics in the world. The environmental regulation in Malaysia can be traced back during the colonialism of British which introduced the environmental standards about the mineral and agricultural resources to Europe. 3. 2 Economic The vehicle sales in the country is expected to fall by 12. 4% in 2009 due to different economic aspect, primarily the issue of global financial crisis, which affected the local financial status of the country (AseanOneMonitoring 2009). As a result, the government of the country is expecting a slow economic growth for the country, which can affect the buying behavior of the customers. Furthermore, due to the AFTA, it had increased the competition, which will impact the performance of Proton. However, the performance of the automobile industry will be maintained and managed due to the huge total labor force. Despite of the slower economic growth in 2003, the unemployment rate was only 3. 5%, which shows an almost full employment (PriceWaterHouseCooper 2005). 3. 3 Social The growing population in the country is one of the factors which can affect the automobile industry. In 2008, the country has a total of 27. million citizens (US Department of State n. d. ). This will give a greater number of markets. Furthermore, the ratio of car ownership in the country is somewhat high or total of 1:5, which signifies that people are considering cars as important things in their lives. Furthermore, people will also set on big-ticket items or consumers are expected to put off buying different motor vehicles because of the employment market uncertainty because of the global and lo cal financial crisis (AseanOneMonitoring 2009). Another factor to consider is the growing knowledge and concern of the people regarding different environmental issues. Furthermore, the impact of the image to the loyalty of the customer is also another factor. 3. 4 Technological Technology is considered as one of the most important factor in the automotive industry. Due to the increasing competition, the development in technology is growing and affecting the performance and position of each and every company in the automobile industry. It is also important to consider the maturity of technology, together with the maturity and capacity of manufacturing, which affect the innovation process of any company. The intellectual property is also important factor, because it is considered as a sign of authenticity and uniqueness. Due to the different technologies, primarily the help of computer and the Internet, the potential for innovation and development is increasing. 4. Micro-Environment Analysis Table SEQ Table * ARABIC 2 SWOT Analysis SWOT Analysis| Strengths * strong support from the government; * strong brand; * reputation; * flexible manufacturing capability| Weaknesses * lack of R;D; * over reliant on the government; * not so competitive; * higher costs than competitors; * lack of international operations; * lack of original products/services; * limited product line; * existing quality issue; * human resource issue| Opportunities * â€Å"Green† Cars; * available government support; * available technological innovations; * entering new markets; * gain online/e-commerce presence; * strategic alliances and joint ventures| Threats * slow growth of automotive market; * change in the consumer lifestyle; * changes in regulation (AFTA); * changing technology; * competition from the foreign markets; * new competitors entering the market; * price war between competitors| Table 2 shows the internal and external factors that are important for the growth of the company such as its strengths, weaknesses, opportunities and threats. 4. 1 Strengths One of the important strengths of the company is its reputation or strong brand image due to the long years it had stayed in the industry. Because of that, the Malaysia people have become familiar and loyal to the brand, aside from the fact that Proton had become the national car brand in the country. Due to that, the car manufacturer has a strong support or back-up from the government, which is considered as an important entity in any business environment. Above all, the company has a manufacturing capability at Tg. Malim to consolidate all models, as well as the existing tariff structure (BuildBoard n. d. ). 4. 2 Weaknesses There are also different weaknesses which must be improved by the company in order to maintain their position in the government. First is the lack of R;D or innovation as well as lack of original products and limited products because of the inability of the company to introduce real new models, which lead them to cannibalize their screwed up line of products (BuildBoard n. d. ). This is because some of the products or models of Proton were based on the model of other international leading brand. It is also important to consider that the company is lacking in international operation, due to the different factors, primarily because of huge competition in the global market. The reputation or image of the company is also facing difficulties because of the current quality issue due to active service units and low plant utilization (BuildBoard n. d. ). Furthermore, company is having different human resource issue due to their inability to retain and cultivate talent. Because of all these reasons, the company is lacking in international operations. Above all, due to it’s over reliance to the government, without the strong support from the government, Proton could lose out to major players in the industry that can cause serious impact on the different supply chain (AseanAffairs 2009). 4. 3 Opportunities The support of the government to the company is an important opportunity, because the government considers the company as their partner, therefore majority of cars needed by local and national government will be Proton. Furthermore, the company can also take advantage of the different technological developments, particularly the different Information Technology (IT) or Information System or IS which can help the company to manage their information that can help them in the decision-making process. Entering new markets will also help the company to expand their business in terms of size; therefore can help to gain more turnovers. It is also important to consider the ongoing popularity of e-commerce or online selling of goods. This will help the company to target more market in more reliable, fast and cost-effective manner. Furthermore, the changing perspective and concern of the people towards the environment also created opportunities for different automotive industry, and that is to offer different â€Å"Green† cars or hybrid cars. 4. 4 Threats The most crucial threats to be faced by the company are the global financial crisis which affects the economy of Malaysia, and affect the lifestyle and buying behavior of the consumer. As a result, as of October of 2008, new-vehicle deliveries slipped by 13% from 42,915 of last year to 37,512 units (Chrysler 2008). The changing and maturing of the technology is also another important factor to consider, together with the growing number of competitors who are entering the market, which result to the price wars. The main reason behind this situation is the AFTA which focus on reducing tariffs from zero to 5% in 15 years among the six nations through a common effective preferential tariff It planned to reduce tariffs to zero to 5% in 15 years among the six nations through a common effective preferential tariff (Ghani ; Zainuddin 2008). 5. AFTA Compliance Problems The ASEAN Free Trade Area or AFTA is a collective effort by the member countries in order to eliminate tariffs on intra-ASEAN trade in the goods sector. The main target is to achieve tariff between 0 – 5% in 2003 for the six original member countries, Vietnam by 2006, Lao PDR and Myanmar by 2008 and Cambodia by 2010, at the same time remove quantitative restrictions and other non-tariff barriers. The reduction or elimination of tariff is undertaken through the Common Effective Preferential Tariff Scheme (Ministry of International Trade and Industry 2008). The main impact of AFTA to the economy of Malaysia is the increase intra-ASEAN competition from lower cost producers; declined competitiveness of traditional export industries which include the high labor cost, lack of resources and expertise and technology obsolescence; removal of protection such as quota system and monopoly status; complying with 40% local content rule; develop competitive local small and medium industries which will focus on the domestic market, dependent on single or few buyers and lack of expertise and backward technology. As a result there are different sectors that might face strong competition primarily the ceramic tiles, cement, plastic products and automotive industry (Ghani ; Zainuddin 2008). AFTA will result to higher economies of scale in the automotive industry in Malaysia. Higher economies of scale will mean lower unit production costs. This will help to translate into lower retail prices and a bigger market. Therefore, AFTA could translate into price cuts of about 20% to 50% on vehicles. Competitive producers can export their products throughout the region at very low import duties and pass on cost savings to consumers. As a result, consumers can exercise a wider and better product choice at very competitive prices (Dey 2002). 6. Industry Analysis Figure SEQ Figure * ARABIC 1 Porter's Five Forces Competitive Rivalry § Improving product differentiation; § Large number of firms; § Low Switching cost; § High exit barriers; § diversity of rivals| Threat of Substitution § Quality of the substitutes products; § willingness of the buyers to substitute; § Low cost of switching to substitutes. | Buyer Power § Homogeneous products; § Huge number of buyers; § Buyers are fragmented (many, different); § High role of quality of service of products;| Supplier Power § Few dominant suppliers; § High role of quality and service; § High cost of switching| Threat of New Entry § High capital/investment requirements; § Availability of the distribution channels; § Access to technology; § Brand loyalty of the customer; § Friendly government regulations| Figure 1 shows the industry analysis of the automotive industry in general. According to Porter, there are 5 important factors which show the attractiveness or value of the structure of the industry: entry of competitors, threat of substitutes, bargaining power of suppliers, bargaining power of buyers and rivalry among the existing players. 6. 1 Threats of New Entry The threats of new entry pertain on how easy or difficult for new entrant to start competing (12Manage n. d. ). The primary barriers of new entry are the high capital and investments that are needed in order to enter the industry. This is because it mainly focuses on the different technologies that are needed in order to come up with the quality and services that are being offered by the long time players in the industry. Aside from that, it is also important to consider the availability of the distribution channel which is very important in connecting with the customers. Furthermore, because there is long time player in the industry, brand loyalty of the customers is considered as inevitable. However, due to AFTA, the government offers friendly entrance policies for the possible new entrants. 6. 2 Threat of Substitution The threats of substitution pertain on the ability of the customers to go for substitute products that might be cheaper and accessible. In terms of the passenger car industry, the growing demands for bikes and motorcycles. More and more people are switching from using the passenger cars into using bikes and motorbikes due to two reasons, first is that it helps them to save money because of gasoline, at the same time, the consumer are becoming more aware of their environmental benefits. Thus, thequality of the substitute’s products, the willingness of the customers and the low costs of switching enables the threats of substitution high. 6. 3 Buyer Power The bargaining power of the customers in this industry is somewhat high due to the homogenous or almost the same products, which divide the number of sales from huge number of competitors. But it can be maintained due to the huge number of buyers, primarily in developed countries, aside from the fact that the buyers are fragmented. Above all, the importance of quality of the products and services are important factors which affect the power of the buyer. 6. 4 Suppliers Power The supplier has a neutral power over the industry. This is because there are few dominant suppliers in the industry who are well known for quality and brand image. This is affected by the high role of quality and service in the industry, because the industry is directly connected to safety and quality of life of the customers. The most important factor which add up to the influence of the suppliers is the high cost of switching. 6. 5 Competitive Rivalry The competitive rivalry pertains on the intensity of rivalry among the competitors in the industry. it is important to consider the improving product differentiation due to the extensive effort of each and every automobile company in the world to become unique and have the stronger market position in the industry. This is the major impact of the large number of firms of organization competing in the global market including local players from Korea, China and Japan which result to diversity of cultures and organizational behaviors of the rivals. The low switching cost from one brand to another intensifies the competition in the market and pushes all of the major and minor players to focus on R&D and innovation processes in order to improve their overall performance in the market. Above all, the competition is increased due to high exit barriers due to the human resource and facilities. 7. Recommendation It will be important for the company to focus on the Delta model in the process of planning and implementing their strategy. The Delta model is a strategy framework that was developed by Dean Wilde together with the members of Dean & Company and Arnoldo Hax of MIT/Sloan School of Management (Value Based Management. net n. d. ). 8. The Strategic Triangle There are three options that are represented in Triangle which are considered as the starting point o the dialogue for the development of a strong vision (see Appendix A) (Hax & Wilde II 2003). Due to the current condition of the company regarding their competitive advantage which pertains on the quality of their products, it will be important to focus on the Best Product positioning. This is because of the fact that the best way to attract, satisfy and retain customers is through the inherent characteristics of the product itself. The position is rather inward and narrow, based upon the prevailing product economics. Thus, the major strategic driving forces are the development of an efficient supply chain that will guarantee low cost infrastructure; a proven internal capability for new product development. At the same time, it will help the proper renewal of the existing product line that will help to secure the distribution channels that will help to transfer the products to the targeted market segments (Hax & Wilde II 2003). This will focus on the R&D and innovation process for the company. In order to maintain the process of engineering and designing passenger cars which will suit the taste and preferences of the customers this is affected by different demographics, economics and social factors. Due to the growing problem of global economic crisis, it will be important to focus on low cost or differentiation of the products. 9. Aligning Organization Wide Strategies In this stage, it will be important to focus on organizational change, because it will focus on restructuring the current business rules and policies towards the strategies of the company. In the case of the company, it will be important to focus on the strong product base, solid supply chain infrastructure as well as internal innovation capabilities to match (Hax & Wilde II 2003). 10. Adaptive Processes Because of the fact that the strategies of the company focus on the R&D process of Proton, it will be important to focus on the Innovation as the strategic task. It ensures a continuous stream of new products and services in order to maintain the future viability of the business. It also helps to mobilizes all of the creative resources of the firm which include the technical, production and capabilities in the marketing field in order to develop an innovative infrastructure for the business. Furthermore, the company must not limit itself to the pursuit of the different internal product development, but must focus the sources of innovation from the suppliers, customers and key complementors. It maintains the focus on the renewal of the business to maintain its competitive advantage as well as superior financial performance (Hax & Wilde II 2003). In this stage, it will be important for the company to know the reactions and opinions of the Malaysia customers regarding the design of their models, particularly the issue of almost identical design of each model. 11. Metrics/Performance Measures It is important to consider that metrics providing overview should be supplemented with granular metrics (12Manage n. d. ). A balance score card dimensions for the firm and for each customer segment tier were identified that will allow Proton to monitor and analyze its current executions of customer targeting as well as innovative strategies which represent different changes of key cost drivers of the financial perspective, operational effectiveness, technology as well as customer perspective (Core. org n. d. ) (see Appendix ). Based on the said balance score card dimension, as well as the Delta Model, it is important for Proton to focus on the changing preferences and demands of their current customers, which are their strategic partners from different parts of the globe, as well as their current loyal customers. It is important to focus on new services and products as well as the capability to deliver new car models to their partnership. As a result, the significant dimensions in the performance matrix must be percentage of strategic/exclusive partnership acquisition, percentage of business volume from different strategic/exclusive partnership, as well as switching costs for complementor and customer (Core. org n. d. ). 12. Conclusion Proton was considered as the national car manufacturer of Malaysia and considered as the major player in the industry. However due to the different factors, primarily the implementation of AFTA, the sales and market share of the company decline. In details, the growing competition enables the Malaysian market to have a wide choice of cars to be availed. On the other hand, due to the strong support of the government, as well as the strong position of the company in the market, it can be said that the company failed to focus on the most important aspect of a company in order to maintain competitive advantage, and that is innovation. Most of the customers are saying that the company is no longer offering real new models of cars. Aside from that, the company is also having a problem in their supply chain, which results to high pricing of Proton's car compare to other international brand in the market. In order to solve the current situation of the company, it will be important to focus on innovation or R;D process. This can be done by focusing on applying new IT or IS to speed up the process of designing. It is also important to focus on the HR aspect of the company in order ensure that the company has talented and skilled staffs to develop new and better products that will suit the ever changing preferences of the consumers. 13. References 12Manage. Porter’s Five Forces Analysis. Available from: http://www. 12manage. com/. [25th March 2009] AseanAffairs (2009). Malaysia’s Proton Still Needs Government Support. Available from: http://www. aseanaffairs. com/page/malaysia%27s_proton_still_needs_government_support. 25th March 2009] AseanOneMonitoring (2009). Malaysia Auto Sales to Fall 12. 4 Percent on Slowing Economy. Available from: http://www. asiaone. com/Motoring/News/Story/A1Story20090122-116465. html. [Accessed 24th March 2009] BuildBoard. Analysis SWOT Proton. A vailable from: http://g4. buildboard. com/images/attachpic/g4/B400/B400F1844T909_8195ded601b2dd2aaee71cb07bd4c006. pdf. [25th March 2009] Core. DMK International (8) – Aggregate and Granular Metrics. Availabe from: http://www. core. org. cn/NR/rdonlyres/Sloan-School-of-Management/15-904Fall-2005/F43E8DBF-9AF8-4B07-BB61-2920E880D30F/0/dm_csstd_dmk8_2. pdf. [2nd April 2009] Chrysler, M. (2008). Malaysian Auto Industry Facing Decline as Global Economy Slows. Available from: http://subscribers. wardsauto. com/ar/malaysian_industry_decline_081208/wall. html? return=http://subscribers. wardsauto. com/ar/malaysian_industry_decline_081208/. [25th March 2009] Dey, A. (2002). The Impact of AFTA on the ASEAN Automotive Industry. Available from: http://www. frost. com/prod/servlet/market-insight-top. pag? docid=IMAY-58VK85. [25th March 2009] ESCAP (2009). V. Malaysia. Available from: http://www. unescap. org/tid/publication/part_two2223_mal. pdf. [Accessed 24th 2009] Frost ; Sullivan (2002). The Impact of AFTA on the ASEAN Automotive Industry. Available from: http://www. frost. om/prod/servlet/market-insight-top. pag? docid=IMAY-58VK85. [Accessed 24th 2009] Ghani, K. , Zainuddin, Y. , Fereidouni, H. G. ; Ziaee, A. (2008). ‘AFTA: Effect on Malaysian Economy’. Journal of Management and Social Sciences. vol. 4, no. 2, pp. 134 – 141. Available from: http://www. biztek . edu. pk/downloads/research/jmss_v4_n2/6. %20Afta. pdf. [25th March 2009] [Accessed 24th 2009] Hax, A. ; Wilde II, D. (2003). ‘The Delta Model- A New Framework of Strategy’. Journal of Strategic Management Education, vol. 1, no. 1. Available from: http://pesona. mmu. edu. my/~wruslan/MISP2/Readings/detail/Reading-37. pdf. Histomobile. Proton (1985-). Available from: http://www. histomobile. com/dvd_histomobile/histomo/63/history2. asp. [Accessed 24th 2009] Ministry of International Trade and Industry 2008. Malaysia and AFTA. Available from: http://www. miti. gov. my/cms/documentstorage/com. tms. cms. document. Document_7d9e2e2f-c0a81573-11c011c0-50afb270/afta. pdf. [25th March 2009] Nijssen, E. J. ; Frambach, R. (2000). Creating Customer Value Through Strategic Marketing Planning: A Management Approach. Springer PMProject. The History of PROTON, Available from: http://pmproject. doubleukay. com/proton_history. html. [Accessed 24th 2009] PriceWaterHouseCooper (2005). Malaysia. Available from: http://www. pwc. om/gx/eng/about/ind/retail/growth/malaysia. pdf. [Accessed 24th 2009] US Department of State. Malaysia. Available from: http://www. state. gov/r/pa/ei/bgn/2777. htm. [Accessed 24th 2009] Value Based Management. net. The Delta Model. Available from: http://www. valuebasedmanagement. net/methods_hax_wilde_delta_model. html. [Ac cessed 24th 2009] 14. Appendices 14. 1 Appendix A: Strategic Triangle Enabled Through Effective Use of Technology| System Lock-In * System Economics * Market Dominance * Achieving Complementor Share| System Lock-In * Customer Economics * Cooperation * Achieving Customer Share| Best Products * Product Economics * Rivalry * Achieving Product Share| Source: (Hax ; Wilde II 2003) 14. 2 Appendix B: Balance Score Card Dimension of Proton Balance Scorecard Framework| Shareholder Look| Operational Effectiveness| Organizational Learning| Customer targeting| Proton|  · Volume, revenue, gross margin by technology segment and market segment · Revenue and turnover by geographical segment (Asia, Europe, Middle East, Africa and Pacific) · Revenue and turnover by business domain such as capital, industrial and government. |  · Wholly-owned subsidiary Lotus Engineering UK – leading automotive engineering consultancy company · Application of Information Technology in the R;D and auto development|  · % of sales from new echnology and models; · Training as a % of sales;|  · Customer market share by tier · Profitability by customer tier · Customer satisfaction by tier| Strategic and Integrated Partner companies|  · Volume, revenue, turnover, gross margin by individual client · Year over year sales and turnovers grow th by individual clients; · Return on business relationship investment|  · Cost to serve clients;|  · Number of clients on each country and partner; · Return on investment on collaboration tools per selected clients; · Return on % revenue on the center of excellence establishment|  · Customer satisfaction; · Joint revenue and turnover from complementor relationship · Relationship| Body Shopper|  · Volume, revenue, turnover, gross margin by individual clients; · Return on investment per head; · % revenue and sales from new clients|  · Time needed in order to complete the transaction from start to finish per model or project; · Idle time of engineering; · Return on investment on collaboration; · % of revenue, volume, earnings by different channels:o Referral by clients;o Direct selling;o Cross selling · Cost of training per project|  · Cost of the collaboration tool in order to facilitate transfer of knowledge|  · Cost to serve clients per channel;à ‚ · Customer satisfaction on the models, relationship and cost of products. | Adopted from: (Core. org n. d. ) * Finance Management * Small business account _ Custom Essay Writing Australia Send us your essay instructions. 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