Sources of capital Assignment Example | Topics and Well Written Essays - 500 words

Sources of capital - Assignment Example Another way through which NFPs raise funds is Grant funding which includes the funds that are awarded to NFPs by the government sector or by organizations that are charitable in nature (Landskroner, 2002). For example World Health Organization may provide a local NGO located in Pakistan with funds for the eradication of poverty in deserving areas of Pakistan. Both For Profit and NFPs can even use Loan financing and equity capital to raise funds for business. Loan financing refers to the money that is borrowed by an organization from another financial organization such as the banks (Zelman, 2009). Equity finance is the capital that is raised by both the organizations by the sale of certain amount of shares of the organization to external investors. Trading or sale of assets is even means through which both kinds of organizations raise capital. Trading is the sale of goods and services in return for money and fixed assets are the assets such as land and furniture that may be sold by or ganizations to raise capital. All these sources have finance have various pros as well as cons associated with them. The main advantage of raising funds through fundraising activities is that the money that is raised does not need to be returned and the organization does not need to provide an account of where and how it was spend. But the downside of this method is that holding fundraising programs is quite expensive. In case of grants, the money does not need to be returned but the not for profit organization has to provide an account of where and how the money was spent. The upside of loan financing is that ample amount of money can be raised at a very small period of time but the loan repayment makes the method expensive. In case of equity, there is an increase in partnership due to which the not for profit organization may lose its sight of working for the wellbeing of others. The problem with trading and sale of fixed assets is that there are certain tax

Visionary Mr Mineka Wickramasingh Essay Example for Free

Visionary Mr Mineka Wickramasingh Essay Brief background on CBL (Munchee) It was the visionary Mr Mineka Wickramasingha in 1960 who wanted to expand his family business from the chocolate market. It was at the same time that CARE looked at sources of nourishment for the poverty stricken. It was a substitute of a biscuit that Mr Wickramasinghe proposed looking to expand on those lines. At that time the market leaders were Maliban. They were the ones who were awarded the contract. Due to lack of space, CBL was first launched at Dehiwela in his own premises to produce a high protein biscuits for schools. From this footing Munchee, has marched forward to capture 80% of the market of the local market. For over 40 years the brand has developed a certain nostalgia that is irreplaceable by any other brand. The taste is enjoyed young and old alike. There vision is to become the number one biscuit in Asia. Product portfolio CBL now produces various food items which have become house hold names in Sri Lanka. CBL expansion is not only with biscuits to which consumers are more familiar, they also have chocolates under brand name ‘Ritzbury’ since 1990s. The other brands are Tiara and Lanka Soy. There are numerous subcategories under each product. There are jellies, soya base products, cereal products, herbal porridges, soups and much more. Sub Categories under the Munchee brand Sweet biscuitsCrackers Puffs Savory Biscuits Cream Biscuits Marie Cookies Assorted HerbalWafers These are premium and hand-moulded chocolates. They come in boxes and slabs. Can be as a coated biscuits or wafers or beans or candy bars. It is in different flavours, type, and size. Sub Categories Chocolate Coated Biscuits Chocolate Slabs Miniature Caterers RangeChocolate Coated Beans Chocolate Coated Balls Chocolate Coated Candy Bars Specialty ChocolatesChocolate Coated Wafers Soft sponge cake made to perfect texture and taste Layer Cake Portion Cake Butter Sponge Cake Swiss Roll Company performance Ceylon Biscuits is of undisputable quality. CBL has shown a growth both in sales and profit for the last 5 years. Revenue had doubled from Rs.1.9 to Rs 5,2 Billion by 2005. Group turnover grew by 48% that same year. Net profit that year was Rs.533 Mio. This was the highest recorded profit for this company. CBL profit gradually grew, as it caught on to an international market. By 2011 sales revenue has grown by 25% in comparison to 2010. The overall profit margin was around 9% for the recently past five years. If ever the company saw a small decline it was due to industrial unrest. This biscuit is spread over 95,000 retail outlets all around Sri Lanka. CBL exports to 36 international destinations. It has been able to spread it’s fame in South Asia as well. Some of the countries of export are USA, Canada, Australia, UK, Hong Kong, China, India, Maldives and even the Middle East countries. The annual export revenue is about US $ 4 to 5 million. CBL has many awards for its entrepr eneurship. These awards are Exports in the Gold Category, Product Brand of the Year for four consecutive years, Anugu International Food Fair award. The daily production is around 150 tons. The annual production is around 45,000 tons. The company’s labor force is about 3,500. Company sustainability relies on strict norms on quality, texture and taste. For this it uses the latest technology, innovative marketing, research and development. The three C analysis There are three phases that need to be carefully scrutinized in order get a total overview of the product. Customer analysis Of the main brand Munchee, the customer analysis will be done on a sub category -Marie widely known as â€Å"Tikiri Marie –or Munchee Tikiri Marie. It is a small sized biscuit. The market segment chosen were children. Presently it is packed in a ‘keep fresh pack’ sold at a economical price. The advertisement that was done on a range of media was presented in the most attractive way, backed by lyrics that set a smile on the lips of any child. It was later that Maliban put a Marie range into the market. But by then Munchee Tikiri Marie had taken the market by storm. Competitor analysis There has been great potential for a children’s biscuit in the market. CBL had limited resources, especially in production technology which restricted revenue. It was the consumer preference that motivated CBL to keep producing the Marie Biscuit. At one point in time 50% of the production was Marie. Yet, the company was unable to raise profits. Maliban held strong to its position. No advertising, trade promotions or merchandising was able take over the market share that Maliban held. Maliban Marie has an unique flavor that was unmatchable. Volume market share (Total Biscuit Market-February 2005) Communication analysis This is a (B2C) nature of business. The company has used campaigns such as Tikiri Marie scholarship program.-Munchee Tikiri Shishyadara. Expansion programs worth Rs. 500 million Rs. 300 million for state of the art plant. It was known as Plant 6 from Italy. CBL went to war using all types of media from TV, newspaper, radio, magazines, even websites to introduce a new Marie. There was a series of advertisement for Tikiri Marie- from ‘Kohomada Tikiri Mole’ to the first day in school. All campaigns had been embarked under their corporate moto-‘A crowning success’. This was CBL communication approach of tacking Maliban. Target market for Munchee Tikiri Marie The brand â€Å"Munchee† has not only spread over domestic market but also the export market. Munchee is now exported to over 36 countries. Munchee can be seen in Gourmet Shops in Australia, supermarket like Wal-Mart, K-mart worldwide in countries like UK, Germany , Italy , Middle-East , Canada and Japan. South East Asian region is spread over 11 countries. When Munchee is target marketed in this area, it must be the same target market as of the other South Asian countries. It is the high quality, texture and taste that captivate any child in any country. Because of this CBL must ensure that they do not loose the perception of ‘a biscuit for children.’ As it is not being partnered by any company as it was in UK the brand name can prevail. Here CBL needs to position its product, thus no private label will be needed either like NTUC of Singapore and Supreme brand in China. Segment for Marie Geographical segmentation-South Asia, Europe, America, UK Demographical Segmentation Age, taste, texture, income Behavioral segment- instant, nutritious Product positioning of Marie Brand Identity vs. Competition (Source- AC Neilson) Premium quality, Innovative and value for money brand available at arms length of desire. Scope of this Integrated Marketing Communications Plan It looks in to objectives, strategies, and tools in communication used to successfully bring about integrated marketing. The plan will discuss ways to launch a program to communicate product. Marketing objective Increase the sale of Munchee Buiscuits. CBL is looking to increase sales by 5% within the next two years. With this to increase the market share by 5% at the end of the second year. Increase the company profile while enhancing the product among the target market. Munchee also wishes to strengthen Brand image among South East Asian countries as a healthy, nutritious biscuit. Communication Objective Awareness program to reach 20% of target market through television, newspaper advertising and web promotions. At least 5% the target market must purchase the product. Issues and Challenges The target market may have other preferences in biscuits. This entirely depends on texture, flavor, taste, shape and size. Thus the promotions/advertising will have to be attractive, creative and innovative in order to reach the hearts and minds of South East Asian Children. Situational analysis Current problem facing product * The target audience may not be reached. * They may prefer other biscuits. * Difficult to build brand loyalty in the food industry. Identifying target * The target market is chosen taking taste and nutrition in to consideration. * Targeting people who looks for low price but has to be of quality. Selecting a Market to Target South East Asia Geographic segmentation Children of the age 1-16 , Middle class Demographic segmentation Target market Instant, nutritious Behavioral segmentation The target market that has been chosen is of the geographical location of South East Asia region among a demographic target of children between the ages of 1-16. In modern South East Asia food in freely available for purchases for people who are one the move. This biscuit provides nutrients that are good for children and is an easy snack in a keep fresh pack. It is instant food for hungry youngsters. Positioning through Marketing Strategies * Introductory price * Chance to taste Competition Product Comparison There are companies like DIMOs that offer discounts to Government servants but no company has offered it to Bankers. AMW is the first to get into this program. Barriers to Entry * The awareness in low. * Banks have tied with other automobile companies, on a separate basis for their leasing requirements and the staff gets their vehicles also leased through those companies. * Buyers may go for second hand as the economic situations are tough. Competitor Differentiation | Chery QQ| Micro Panda| Features | Small hatch back with comfortable interior, Three Cylinder DOHCMPI 12V Petrol 812 CC engine Chery is imported from China and marketed in Sri Lanka by David Peiris Motor Company| Micro car, Volvo tech, 1300 cc engine. Made in Sri Lanka. Comes with and without air bag.| Target Market| Working professionals| Working professionals| Strengths | Low price, Brand backing | Made in Sri Lanka| Weakness | Small range of customers, No discount| Small range of customersNo discount| Consumer Behaviour – problems faced in addressing communication message There is nothing extraordinarily attractive about the AMW Maruti. But the interior is appealing. It is economical on the fuel. There is a one year warranty on the car. These are some of the aspects in regards to the car that a consumer will look at. Then the consumer is going to look at the company that selling the car. Associated Motor Ways Ltd is one of the oldest automobile conglomerates in Sri Lanka. They are the sole distributors of Suzuki vehicles in Sri Lanka and are affiliated with several brand names in the motor industry such as Nissan, Yamaha, and Goodyear. Addressing the problems with the vehicle such as no extra ordinary beauty about the vehicle or that there is fume emission from the vehicles which is hazardous to the external environment, what AMW concentrates on is the interior of the car and how economical it is. The Maruti is good on fuel. The size makes it easy to handle. This car is val ue for money. Branding Bankers are likely for a discount program where the vehicles are leased giving a bank loan. Maruti is likely to stay in the minds of the buyer due to features of the vehicle, the interior and the engine capacity in relation to the other brands of this same model which where given under competitor analysis. The Maruti is a more durable and dependable brand. Position statement This promotion is available only for bankers that are permanent in their jobs and the loan facilities are available. Any other financing will not be permitted. The discount is available for all colours of Maruti. Promotion The promotion is done within Colombo and its near suburbs. For this promotion 50% of the budgeted funds are allocated. This was first circulated to family and friends, for the word of mouth is the cheapest and the best way of promoting a discount program. Gradually as the awareness starts to increase it will be circulated among banks, first on a personal basis to call whose contacts can be acquired. Then the leasing managers or the staff managers in charge of staff leasing will be approached. Depending on the geographical location, banks will be approached in regards to the promotion. Once the approval has been obtained by the management, posters will distribute to main branches. These are known as power position advertising. The dealership logo will be indicated in the poster. A list of the eligible staff members will be collected and a web based mailer will be sent out to them. Permission will be acquired to post the promotion on an intranet facility that is accessible only to the relevant bankers of the targeted bank. A car may be sent out to the main branch for display. Once the initial promotions have been done in and around the main branches where web may not be the best promotional attribute a news paper advertisement will be posted. The news paper will carry a pictureous depictation of the car with a Brand Ambassador. The Brand Ambassador can be a cricketer or any other sportsman who is working in a bank indicating that this is the best leasing offer ever. These adds will have to run every often and it must be made sure that the adds are not too small to see. It may be preferable to advertise in a Sinhalese paper when thinking of promoting the discount program among the suburbs. There has to be creativity, innovation and an even flow for an advertisement to catch the eyes of the reader. A Saturday or Sunday paper is preferable as people have more time than on a weekday to read the paper. Television can be used as last resort. This is expensive but can be the most influential method of advertising. This is a sure a way of information gathering for viewers. The television adds usually have a lasting impression on the viewer. This is a sure way of assuring results for IMC. There are many highly watched channels of those the cheapest but the most effective can be used. The TV add can play between programs. The programs after which the add will be aired will have to be carefully chosen. It will need to depend on viewer’s discretion. The advertisement can go on for a period of 6 months at least. The web based marketing is another method by which advisement can be done. This is the most modern method. Some of the websites frequently visited by banke rs are Facebook, ESPN, Google, YouTube, Digg.com, Myspace, and Perezhilton.com. The most popular of them all is Facebook, Google, and Youtube. All these websites focus on online advertisements. Websites like Facebook taps a large audience. This not only enables promoting to bankers but also lets others know the car sale. This is a good way to get other companies to tie up with the dealership of AMW. Communication Tactical Calendar | Jan| Feb| Mar| Apr| May| Jun| Jul| Aug| Sep| Oct| Nov| Dec| Poster| | | | | | | | | | | | | News paper| | | | | | | | | | | | | TV| | | | | | | | | | | | | Web| | | | | | | | | | | | | Display| | | | | | | | | | | | | Budget The largest potion that is 50% of the budget is for promotion. Of the 50% promotional budget 30% will be allocated for television commercials, the remainder 20% for news paper, posters, display and web. The remainder 50% will be allocated for Brand Ambassador and miscellaneous expenses. The total allocation for the budget is Rs. 2,000,000/- Measurement system Implementation Controls Monitoring, review and control will be done by the dealership company with the collaboration with the bank that is leasing the vehicle. The review to be done on a monthly basis. Progress against targets to be analyzed. For this a marketing plan has to be drawn out. A target market needs to be chosen and a pilot project done before, the discount program is advertised. Once the dealership feels that this can be a successfully implemented then monitoring has to be undertaken. This has to be done carefully. Gap analysis done on a regular basis. Correction actions need to be taken if there is no progress within the first three months of advertising. Dealership may go back to the drawing board and redo the marketing plan again. Quality Assurance Around this time the company was receiving a number of complaints regarding its biscuits breakages, poor taste, quality etc. Rather than ignore the issue, CBL decided to place an emphasis on investigating the cause of the complaints, and took corrective action, including formula changes, to reduce the high number of returns at the time. Setting up better procedures for packing, product handling and transportation, the company prepared for its future growth. It conducted daily taste tests of its own products and organized regular taste panels to compare its products with those of its competitors. It also methodically documented the specifications of all products being manufactured knowledge that had previously been passed on through practice and word of mouth. As the demands on the Quality Assurance department began to rise, the company decided in 1996 to seek ISO certification Today, quality assurance remains an area of particular pride for Munchee. The department plays a critical role in product testing and development of production process controls and systems. High hygiene standards for toilet habits and hair, together with regular swab tests of employees are strictly enforced. Every shipment of incoming materials is tested for quality and those that fail are rejected. Following a complaint, products are collected from customers and subject to laboratory analysis. In 2004, CBL received HACCP certification for food safety together with SLS certification for its biscuits23.. With these in hand CBL became the only confectionary company in Sri Lanka to acquire all relevant quality certifications for its line of business i.e. SLS, ISO 9001:2000, ISO 1400124 and HACCP. Product Development Product development also became an area of increased focus. While CBL had begun operations with a line of distinctive biscuits, along with some generics. However, in the recent years the push for higher turnover had resulted in innovation playing a secondary role. Some of the biscuits that had made Munchee distinctive, were neglected in favor of more mass consumer products. CBL began formulations and potential improvements to flavor and quality. The company also began to actively investigate and keep up with new technologies and machinery by participating regularly at trade exhibitions and through membership in industry associations. Distribution Around this time CBL took the decision to rethink its methods of distribution and undertook to overhaul its sales and distribution efforts in favor of a much bolder plan. Up to this point the company had depended almost completely on wholesalers to sell its products as a hassle free means of managing its distribution efforts. As a result, while CBL had the logistic and cost advantages of maintaining a lean sales team, the company suffered due to its dependence on the enthusiasm of its wholesalers to push its products. CBL decided to bite the bullet and invest heavily in its sales force. It expanded its distribution reach, increasing its number of distributors, changed the demarcation of sales regions into much smaller areas for more intensive sales efforts and recruited the regional and senior sales personnel required to cope with this new direction. 5.4.4 Customer Intimacy With the changes to its sales force, CBL was forced to face up to the fact that it was very removed from its consumers. The company recognized that it had been paralleling the moves and decisions made by Maliban rather than acting on real consumer insights. CBLs focus had been very much product centric concentrated on improvement of its formulation and production technology. It developed its products in isolation and once developed attempted to market them. Little attention had been paid to market research, even on an informal basis. Moreover, CBL began to understand that its customer was a new, youthful generation whose tastes and style were very different from the consumer of the previous ten years. Beginning in 1996, the Board itself acknowledged this changed attitude by beginning to go to the field on a regular basis to a top down attempt to gauge market perceptions and trends. The newly developed sales force provided feedback from consumers and distributors and the company took the further step of setting up a separate subsidiary to plan its marketing activities and to become more responsive to market needs an gaps. The holding company became primarily responsible for improving product quality and procedures. 5.4.5 Image Building CBL also recognized that in order to grow it had to become a better known name as a company. Partly as a result of its multiple brand names, CBL itself was relatively unknown as a corporate entity. Embarking on a campaign to raise the profile of the company, CBL engaged the services of a consultant, and set out to gain greater corporate recognition for itself among both consumers and the business community. The publics lack of knowledge of the breadth of the companys activities was hindering its activities as a holding company, particularly for purposes such as tapping the capital market. With the help of its consultant, CBL set about establishing a public image for itself. This was done primarily through the print media. Every week or so, an article regarding the company and its various corporate activities and Latest initiatives, including its export plans and CSR, appeared in the newspapers. Competitiveness Behaviour The Biscuit Wars Around 1995, CBL had hit a wall in terms of increasing its turnover. Limited by its existing production technology and consumer tastes, t its highest growth opportunity lay in the Marie biscuit market. While CBLs Marie25 biscuits now made up 50% of total production, the company was unable to meaningfully increase its sales and market share of the Marie category. It had attempted a variety of marketing activities including extensive advertising, merchandising and trade promotions, but was still not able to take sufficient market share away from Maliban. The Munchee Marie biscuit was at this time essentially a knockoff of Malibans Marie and used very similar packaging. However, despite much effort and testing, eBL was not able to exactly reproduce the Maliban Marie flavor. Although market share was a (then) respectable 10% and despite fervent urgings from its own sales team to the contrary to be more like Maliban, CBL decided that the time had come to change tactics and be different in order to try to break through the turnover barrier. The Tikiri Marie Campaign Munchee hit on the winning concept of launching its own Marie as Tikiri Marie – a petit sized Marie biscuit using an aggressive campaign entitled Tikiri Mole†, to bring the little biscuit to the attention of consumers. The campaign targeted children with the use of attractive advertising and proved a real turning point in Munchees growth and image. The biscuit was so successful that the smaller sized Tikiri Marie became the number one Marie biscuit in the Sri Lankan market, with a phenomenal 50 per cent of Marie market share and eventually forced the giant Maliban to acknowledge Munchee as a significant market player by playing copy cat and resizing its own Marie. 7 Part of Munchees success with Tikiri Marie stemmed from Malibans complacency and its failure to react to this attack on the Marie category. The Tikiri Marie campaign brought into effect other changes at CBL such as the introduction of Munchees keep fresh pack, which ensured better product freshness. Followin g its success with Tikiri Marie CBL expanded the use of the fresh pack to the entire Munchee biscuit range. The company also commenced a Tikiri Marie scholarship program for school children in 1997 entitled Munchee Tikiri Shishyadara which it continues to this day. Now in its eighth year, the program provides 120 deserving children with scholarships of Rs. 1000 per month for one year with fresh applicants being selected annually. By 1998, the cumulative effect of the changes made through the 1990s, resulted in CBL achieving a 30% market share of the biscuit market (up from 20% at the start of the 1990s) and topping the Rs. 1 billion turnover mark. This was a major milestone for CBL, both internally and externally. The company was becoming better known, both to consumers for its brands and quality products and to the industry for its investments in good technology. CBL reinforced this reputation by committing to a Rs. 500 million expansion program Rs. 300 million of which was spent on a large state of the art plant from Italy. Plant 6 as it was known, was CBLs largest capacity plant thus far with five lines that could handle both hard and fermented dough. This action by CBL sent a strong message, to its staff and associates, about CBLs optimism and confidence in the companys future growth commercialization of this new plant, CBL planned to introduce a new range of biscuits to tackle Maliban head-on. 6.1.2 The Lemon Puff Battle CBLs next strategic attack on Maliban came in 2001 with its Lemon Puff. The Munchee Lemon Puff had a solid 30% market share but as was the case with Marie, failed at growing sales further as a me too product. CBL decided to re-Launch Lemon Puff, by promoting it as a sandwich biscuit with a higher quantity of lemon cream. The campaign was heralded by an intensive television campaign directed at capturing the attention of a new market. What the company did not reveal in its advertising was that the cracker itself had been vastly improved, through a new formula and upgraded technology. It was in fact a noticeably better overall sandwich biscuit than Malibans Lemon Puff rather than just being a look alike with more cream. Going against the advice of its advertising company, Munchee replaced the traditional yellow packaging, synonymous with the Lemon Puff category, with a white wrapper. The superior moisture and odour barriers of the new metalized wrapper combined with the new pillow pack technology, which used only two seals to achieve increased air-tightness, better preserved the crispness and freshness of the sandwich biscuit. This had been a problem that had plagued both companies puffs for decades. Consumers who tasted the Munchee Lemon Puff for its extra cream (not enough cream was a complaint associated with both Lemon Puffs for years) were pleasantly surprised and rapidly switched loyalty to the Munchee Lemon Puffs. Thus Munchee demonstrated that it was in touch with tastes of its consumers and used their feedback to improve its biscuits. The impact of the product changes were felt immediately. Munchees market share in puffs went up from 30% to over 50% within a mere four months following this relaunch, and grew the entire puff category from 12 to 16%. As a result, Malibans share of Lemon Puff which had been a staggering 70% plummeted to 29%. By now Munchee had 45% of the local biscuit market and was vying with Maliban for market leadership. CBLs next big ch allenge was clear take on Maliban in the cream cracker market. Despite Munchees success at growing its sales, Maliban still had nearly 75% of the lucrative cracker market while Munchee was at a meager 23%. The Maliban cream cracker was well accepted and entrenched in the market. CBL had to find a way of breaking through with an innovative cream cracker to take on this market. 6.1.3 The Cream Cracker Assault The following year, in 2002, CBL re-Iaunched its cracker as a Super Cream Cracker, enriched with vitamins in a bold campaign, with live broadcast of two music shows held simultaneously in Colombo and Anuradhapura before massive crowds As they had done with the Lemon Puff, CBL used a new metalized pillow-pack with a contemporary look to break away from the traditional solid red Maliban packaging synonymous s with cream cracker and re-formulated the cracker to deliver a crisper and tastier product. The Munchee strategy of delivering a superior quality product that convinced consumers to switch brands proved a success and the results were phenomenal. Cracker sales grew, expanding its own market not merely taking over competitor share. Growth in sales nearly tripled and Munchees market share in cream cracker immediately doubled to 40%, reaching 50% the foHowing year. Today, of the total cream cracker category, which makes up 20% of the total domestic biscuit market, Munchee owns a 60% sh are. Super Cream Cracker accounts for 30% of the companys turnover, with a profit margin of over 25%. Munchee continues to fight aggressively for market share. Its most recent marketing campaign entitled Podi Badaginne† targets the large 500 gm pack market, previously serviced by loose crackers. The focus is to use the cracker as a substitute for a full meal for chummary factory workers who are already provided with two meals from their work place. The company has again demonstrated its knowledge of customer needs and changing trends and lifestyles in Sri Lanka as the record 128% growth of this heavy use pack from 2004 to 2005 shows. Business Expansion Beginning from the 1990s, CBL began looking at other areas in the food and confectionary industry to expand its businesses activities. 6.2.1 Ritzbury One of the first areas CBL explored was one naturally complementary to its existing line of business: chocolate. At one time, the company had produced chocolate for Nestle and had some exposure to Nestles chocolate operations. Launched in 1991, Ritzbury chocolates began with chocolate coated (enrobed) biscuits. The company went through much teething pain in developing the right quality chocolate for its use. It struggled to develop a workable formulation one that tasted good while withstanding the melting and rancidity caused by the tropical Sri Lankan weather. Ritzbury gradually developed its market by first growing its range of coated biscuits, then expanding to chocolate candies and hand made chocolates, and only recently moving into the traditional slabs the largest market category. The companys strategy is to provide innovative eye-catching products to its consumers and thus differentiate from its competition. Ritzburys first entry was Chunky Choc (chocolate covered biscuits sandwich with butterscotch cream filling), followed by Chit Chat (chocolate coated wafer with hazelnut cream) and Chocolate Fingers (chocolate coated finger biscuit). Another innovation for Sri Lanka was Pebbles (brightly colore d, sugar coated chocolate candies). The Ritzbury range includes Nik Nak, (chocolate coated vanilla cream wafer), Go Nuts (colored chocolate coated peanuts), Choosy (liquid chocolate stick) and Choco-La individual nuggets. Although it started out originally as a poor number four, Ritzbury recently beat Kandos (Ceylon Chocolates) to the number two spot in the chocolate market. However, at 21 % vs. 42% Ritzbury has only half the market share of market leader Edna and a long way to go to become number one. Further, Edna has itself shown to be very aggressive and quick in bringing out innovative products to the chocolate market. Ritzbury for its part, offers over 60 differentiated items, at the full range of price points and with a dedicated sales force certainly provides its consumers affordability and access. Despite being a small local brand, it offers consumers a complete range of chocolates and chocolate coated products and for other products frequently provides comparable alternati ves to more expensive imported products. Examples are Pebbles as an alternative to Smarties, Chit Chat to Kit Kat and Go Nuts to MMs. Yet, apart from the hand molded specialty chocolates and coated biscuits products, the company has yet to fully convince local consumers that the quality of its slab range is on par with that of imports or Kandos. By 1997, following its first biscuit war and having grown its market share in the biscuit market to a respectable 30%, CBL began to focus on sales of Ritzbury. One hindrance to improving growth CBL realized was the then single chain of distribution it used for both biscuits and chocolates. In practical terms what this implied was that once a retailer had gone through purchases of the more established Munchee list of biscuits they would have little money left for Ritzbury chocolates. Ritzbury sales were materially affected and it became evident that an alternative would have to be sought out. One option was to increase the breadth of the CBL range in order to afford to maintain a second line of distribution. 6.2.2 Pancho Snacks With this in mind, CBL decided to enter the snack food market in 1998 under Ritzbury. Named Pancho, this snack range was made up primarily of extruded snacks. However, despite the companys sustained efforts with Pancho and the separate sales force, the impulse buy snack market proved a disappointing arena for CBL. Despite the introduction of two products under a new line named Catch Me together with a re-Launch of Pancho in 2000, the company found that it could only succeed in this market with a near continuous stream of promotions. Although CBL persevered in snack foods for nearly five years, it was eventually forced to close up this operation and admit failure. With the aim of an expansion of its range still in mind, CBL next entered a completely unfamiliar food market. In 2000 due to its own financial difficulties, Yanik Incorporated, an investment bank, was selling its 79% stake in Soy Foods (Lanka) Limited, a public listed company manufacturing textured vegetable protein (TVP) n uggets. Soy Foods was a loss making number four player in the market but had pioneered a number of soy products under the brand Lanka Soy. CBL seized this opportunity to expand its range, encouraged by its present Managing Director who had experience in the soya area. CBL purchased the stake in Soy Foods at Rs.9/share and took over operations in September 2000; by 2002 the company had been successfully turned around and had become a viable entity. This was the success story that CBL had been searching for. The Soy Foods line allowed CBL to maintain a dual distribution network, one for its biscuits and another for chocolates and soy. The effects of this isolation of chocolate sales from biscuits were immediate and notable. By 2002 Ritzbury had made impressive inroads into its competition and grown market share to over 15%. 6.2.3 Lanka Soy In 2000 when CBL bought over management of Soy Foods (Lanka) Ltd. from Yanik it was a loss making company. Despite being the pioneer in the local soy market, Lanka Soy was at the time selling only 50% of the volumes of the market leader Raigam, with a 15% market share. The companys growth was stagnating in a rapidly growing market, and many smaller competitors were cashing on its market with lookalike products. The ambitious strategy set out for a turnaround of the company was to aim to make it not merely profitable but the market leader. CBL decided that not only was it necessary to grow Lanka Soys market share, through a fresh look and product, it was going to grow the total product market through a change in positioning. Thinking very innovatively, the company decided what was needed was to position soya not just as a vegetarian food, but as a more economical substitute for the protein content of a main meal. Touting advantages such as convenience, price and the lack of freezer requirements together with newly introduced catchy features such as interesting shapes and flavors, a whole range of new branded soy products were launched under the Lanka Soy umbrella. Given that at the time, chicken flavored soya was the most popular soya product the company decided it would introduce interesting flavors to accompany new presentation efforts. In order to take the competition head on, it improved the taste of its traditional range, while also increasing its product range. It developed not one but a range of chicken flavors, under the brand Chikosoy, consisting of tandoori, masala, roast and chilli chicken flavors. For the traditional vegetarian market, it introduced the Vegesoy range a further four flavors of mushroom, hot and spicy, Chinese chop suey and Indian rasam. But its piece de resistance was a completely new entrant Malusoy. This range of not merely fish but also seafood flavors truly tapped into a very strong local preference for seafood. Malusoy comprised spratts, devilled prawns, cuttlefish and ambul thiyal flavors. Packaging for the four new sub brands was done using a range of appealing eye-catching colors, with a unique logo designed for each. Advertising again interestingly was carried out individually on a sub brand basis. For example, Malusoy used a two column poster conveying the advantages over canned fish. The company also took the extra step of providing a sauce sachet to provide a one step cooking process. Emphasis was placed to introduce the cooked product to consumers by way of cookery demonstrations and street promotions. In particular, Malusoy was aimed at areas with little coastal access. Sales efforts were overhauled, re-demarcating a network to reach 35,000 outlets with designated representatives for supermarkets, catering and restaurant sectors. The results were strong. By early 2002 Lanka Soys market share had jumped to 25% hitting 30% and market leadership a year later. Malusoy to eBLs surprise turned out to be Lanka Soys front runner in sales. The strategy to offer consumers, as a household, their daily main dish at a price less than half the price of canned or fresh sea food was highly successful. Within 24 months Malusoy sales exceeded 500,000 packets a month, making up over 14% of the total soy market. Due to the sudden launch of many interesting products at the same time Lankasoy established itself as trend setter and frontrunner of the soya product market. 6.2.4 Tiara Cakes eBLs next expansion was within the local confectionary business -the lucrative Rs. 4 billion plus local cake market. eBLs main biscuit and chocolate operations had traditionally taken place at its home factory located along with its head office in Pannipitiya. However in 2002, the company invested Rs. 1.5 billion to set up eBL Foods International (eBL Foods), a Board of Investment (BOI) approved company in Rannala, about one hour away. Awarded a 10 year tax holiday, eBL Foods has a mandate to manufacture bakery products and chocolates the former includes a new line of cakes under the brand name Tiara. The new venture commenced operations in September 2004 with a new line of portion cakes individually wrapped sponge layer cakes, marketed under the Tiara sub brand Okay, The product line also includes swiss rolls. CBL Foods boasts a state of the art plant intended primarily for cakes and a Clean Room,,33 to guarantee freshness for a shelf life of up to eight months. Due to production constraints faced elsewhere however the 110,000 square foot modern facility also includes manufacturing and packing for chocolates, wafers and biscuits the latter including both hard and soft dough. CBL expects that its group tax slab will come down to 32.5% as a result of CBL Foods tax advantaged status and the shifting of these manufacturing of chocolates, wafers and biscuits, which previously came under Ceylon Biscuits tax slab. The company uses a formula to determine profit and is taxed at the preferential rate of 15% on its export. 6.2.5 Other Snacks In 2004, CBL invested Rs. 50 million to acquire a 60% stake in Cecil Food (Pvt) Limited (Cecil Food) an organic manufacturer of dehydrated fruit products, fruit juices, desiccated coconut and cashews primarily for the export market. Though the company had been in existence for 10 years and exported to 20 countries, it was facing financial difficulties. CBL brought to Cecil Foods the financial strength and management experience that it needed, while the founder retained a 25% stake. CBLs main interest in Cecil Food was its exposure to rural agriculture and its export and local market potential. The company presently exports to countries including the US, UK, Germany, Taiwan, Australia, New Zealand, Malta, UAE, Saudi Arabia, Qatar and Bahrain. Armed with CBLs financial backing the company has overcome its working capital needs. CBLs infusion of capital has enabled the purchase of new equipment and is now looking at expanding sales to tap the local market. Cecil Foods also has a 100% o wned subsidiary Cecil Fruit Canneries which concentrates on natural fruit juices for both the domestic and export markets. CBL intends to launch this range to the domestic market by introducing a line of fruit juices in novelty pouches. Export Markets CBL has also set its sights on growing its revenues through tapping sales in overseas markets. Although CBL had been exporting biscuits from inception, around 1997, the company began to export regular container loads to the United States, Canada, Australia and India, while also investigating at lucrative export markets such as the Middle East. India became a particular focus, with the company beginning its own marketing effort there. By 2000 CBL was also exporting to the US, Canada, Australia, UK, Sweden, the Middle East, Hong Kong, Mauritius, Fiji Islands and the Maldives. Although the export sector took a long time to stabilize, export orders now go out to 36 countries, exceeding Rs. 110 million in value (USD$ 1 million) in 2004/5. Exports to the UK, Middle East and Canada are mainly to the so called ethnic markets catering to the Sri Lankan diaspora, but in other countries demand is slowly establishing into in the established biscuit market through chain distributors. While most e xports are under private labels that it, outsourcing for foreign biscuit companies CBL has managed in some instances to establish its own brand. This is particularly the case in Australia where the company has taken the additional step, as it did in India, of setting up its own marketing effort by establishing a company representative as market manager. Australia is now the main export market for CBL, having overtaken the United States. CBL also enjoyed some recent success making inroads into western Africa. 6.3.1 Entry into India There are four accepted methods for a company to enter a foreign market: exports, licensing, joint ventures and direct investment, which often represent an evolution in the degree of interest the company develops once it is present in the market. Beginning with straightforward exports from the mid 1990s and early exports of containers to India in 1999 CBL took the next step in developing the Indian market by investing Indian Rupees 3.6 crores (36 million) to purchase Parrys Confectionary based in Pondicherry, about an hour from Chennai. Setting up a 100% owned subsidiary Ritzbury India, CBL began manufacturing operations for the first time outside Sri Lanka. The acquisition provided CBL with a six line 350 ton a month manufacturing plant. The company entered the Indian market with the Munchee and Ritzbury brands, for distribution in Tamil Nadu and Kerala. While the chocolates were manufactured in Sri Lanka, most of the Munchee range was baked in India. CBL produced nine varieties of biscuits including Marie, Glucose biscuits and several creams at the Pondicherry plant. This manufacturing base in India proved to be both a blessing and a distress to CBL. On the one hand, it became a strong negotiating tool for CBL at a time of labour unrest. CBL was able to take a tough stance, threatening closure and the moving of its entire manufacturing operations to its base in India. However, on the other hand, distribution arrangements provided by Parrys proved to be less than satisfactory. The company began a losing battle in trying to distribute its products. Revenues were far below expectations and Ritzbury India further faced a number of detrimental tariffs in South India. Despite a Free Trade Agreement with India, and a reduction of duty to 3%, the state sales tax in Tamil Nadu was increased by 8% for imported goods effectively nullifying any duty concessions. Following a second acquisition in India, CBL decided to completely dispose of its Chennai operations at a loss , dissolving Ritzbury India. In 2003 CBL heard about the sale through court auction of Bakemans, once the third largest biscuit manufacturer in India with a market share high of 13% of the total Indian market. Outbidding its Indian competition in July 2004 CBL successfully acquired the assets of Bake mans at a cost ofRs .. 300 million. Along with the premises the company also gained six biscuit lines from the acquisition, two of which it chose to bring to Sri Lanka for installation at CBL foods to allay its present capacity constraints. Based in Patiala in the state of Punjab, CBL set up CBL India with plans to commence commercial production in the near future, using one biscuit line. Having recruited Bakemans former CEO, who had been directly involved in the companys rise to its one time number three position, CBL has ambitious plans for India and its manufacturing operations there in the future. Tentatively speaking of a Munchee-Bakemans brand name, CBL aspires to become number three in India within two years of operations and have the same type of success at retail that Dilmah has achieved in India CBLs challenge in India is to find a mass consume r line of biscuits similar to Marie and Cream Cracker in Sri Lanka. Glucose biscuits are an area that the company will have to examine, given their present popularity in India, but to compete with established players such as Parle-G and Britannia, CBL will need both a reliable distribution network and an attractive proposition for the Indian consumers to give it a try. The use of the Bakeman name, which would certainly aid the latter, is presently an issue. If CBL is able to use the Bakeman brand name in some form it will cut down market establishment time considerably. CBLs strength is that it has the innovation to develop a product to suit this market and it has proved in Sri Lanka that it has the quality and taste to convince consumers to switch to its brand. What remains to be seen is whether it will have sufficient insight into the Indian market to correctly select what that winning product and distribution strategy should be. Other Indian Ventures In 2004 CBL entered into an agreement with Ferrero of Italy to distribute and undertake manufacturing on Ferreros behalf. Ferrero is the world renowned producer of Nutella, Tic Tac and Ferrero Rocher and Mon Cherie brands of chocolate and another family owned business. Presently the agreement entails the manufacture of boxes for Tic Tac, Ferreros signature mini mint, intended to be extended to the manufacture or finishing of the mint pill also. CBL distributes Ferrero Rochers foil wrapped boxed chocolates, Nutella and Tic Tac for Ferrero in Sri Lanka and India. Manufacturing commenced in August 2005, packing pills imported from Australia into the boxes. Distribution is intended for Sri Lanka, Africa, India and Pakistan. The linkup with Ferrero is another example of CBLs chairmans dynamic personality and relationship building skills. Following initial contact in India, CBLs directors visited Ferreros head quarters in Alba, Italy, which Ferrero reciprocated with a visit to Sri Lanka. The company has expressed an interest in using Sri Lanka as a base for South Asian activities, moving its present activities from India, convinced of CBLsabilities as a business partner. CBL in turn hopes the association will expand its knowledge base through contact with the 60 year old Italian family business. Business Unit Contribution Biscuits Turnover from Munchee biscuits, the biggest contributor to group turnover, grew 30% in the financial year 2004/5 and early results for 2005 show this trend continuing. Past years sales have grown at a similar overall pace, although specific products have shown even higher growth rates at times of changes and innovation. Profit margins on biscuits range from 20-25% with products such as Super Cream Cracker, Tiffin and Chocolate Puff being the most profitable. Biscuit sales are presently constrained primarily by production capability, with demand strong and the company intending to increase its production lines in 2005/6. To try to keep up with demand, CBL has brought down two lines already from its recent acquisition in India and plans to import a new 2 ton per hour machine from Italy, expected to be installed in early 2006. Group Performance While CBLs overall growth has been strong over the past five years with revenues more than doubling from Rs. 1.9 to Rs. 5.2 billion over the period, profit increases have been even higher due to various tax benefits. In 2005 CBLs group turnover grew 48% to Rs. 5.2 billion and net profit after tax grew 63% to Rs. 533 million, the highest ever in the companys 36 year history. Sales surpassed the previous year across all areas of biscuits, chocolates, Soya and exports. The tremendous bottom line growth clearly indicates the contribution accrued from CBL Foods tax advantaged status. In comparison the 2004 figures were 11% top line and 23% bottom line growth. On average, overall profit margin has been near 9% over the five year period. This is taking into account FlY 200112 which differs due to both the industrial unrest that CBL faced for two months of that financial year as well as the exhaustion of the tax benefits afforded by the 1988 Investment Tax Allowance. The companys latest earning per share figure (EPS) is an astonishing Rs. 53.12 and more impressively has grown from Rs. 36.75 in 2003. This EPS figure reflects the extraordinary growth that CBL has experienced over the last 10 years. EPS in the late 1990s was actually in the Rs. 3000 range on the companys original ordinary share capital of Rs. 390,000 (made up of 39,000 Rs. 10 shares). Path Forward Ceylon Biscuits faced with production capacity constraints for its biscuits, as demand has grown well beyond forecasts. It has adopted the following three pronged approach to increase capacity: a) bringing down two biscuit lines from India from its Bakemans operation for immediate capacity expansion, b) importing a brand new large capacity plant from Italy and c) future capacity expansion of its Indian manufacturing operations. CBLs future growth will come from increasing exports of its established products and diversifying by leveraging its domestic logistics and distribution capabilities to market its other products. The company is also increasingly open to looking at new opportunities, an example being manufacturing for Italian chocolate maker Ferrero. The companys core competencies for the future will be investment in technology, financial strength, sales and marketing competency and focused management. Key challenges will be dealing with its production restrictions and becoming able to compete on a global basis by 2007. CBLs greatest test will be when the Indo Lanka FTA final phase permits Indian biscuits to be imported duty free beginning 2007. CBL intends to examine becoming listed on the Colombo Stock Exchange over the next few years. Since the desire for listing does not seem to be driven by financial needs only, it is still unclear what CBL will gain from this step. The company wishes to formalize its procedures in order to firm up its financial transparency and professionalize its organization structure and operations to ensure future continuity and success. There is a sentiment that going public will enforce the discipline required to ensure this. CBL is well poised with a business model to ensure ongoing value creation. It has spent time building strong brands that have future earnings potential. The brands have proven their competencies in that they have been replicated across new markets with success. However there are some concerns that need to be explored. Managing export markets Export marketing could be more aggressive the model adopted by Munchee for Australia of establishing a marketing office seems the proven route to establish and develop key markets. We see some amazing possibilities for synergies for CBL in inviting someone of the caliber of Merrill 1. Fernando Chairman Dilmah to its board, perhaps even offering Dilmah some equity in an export division or forming a separate export company, who could help with establishing relationships with some of Dilmahs retailers and distributors in Australia. One way or another, the use of a different model to fast track export market expansion is advisable. 5. Managing Indian market entry This is the second greatest challenge facing the company. India is an amazingly dissimilar market to Sri Lanka despite certain cultural similarities. It is fragmented with over 15 million retail entities, the largest number in the world. The organized retail sector in India is only 3%. However, over 51 % of its population is under 25 years of age and the fastest growing sector is the retail high-end supermarkets -expected to grow over three fold in the next five years (from US$8 billion to US$25 billion). Beginning with three malls in 2003, India had 25 by 2005 and is building 200 more. The pace of change is phenomenal. It makes sense to enter this high-end retail Focus on core competencieslRefocus on Sales and Marketing CBLs passion for quality, capacity to build brands and technological and production innovativeness are great competencies to be retained. Skills like marketing and sales are always unstable. Such skills are in demand, pressures are great and often new challenges are looked for in different cycles of growth. No proper product management system or category management is in place. It is important to have some depth to the marketing department. And while CBLs success speaks volumes for the capabilities of its current Director of marketing there is a need for a diversity of approaches and opinions so that marketing efforts do not grow stale. Key mid level appointments need to be made. Customer intimacy! Product leadership / Managing brand TOM In spite of CBL making all the right moves, and succeeding in achieving higher scores than Maliban in most of the consumer research categories (see chart below), Munchee is still behind in brand Top-Of-Mind (TOM) recall. This is despite Munchee having strong market noise levels in share of voice and especially with the competition making so many mistakes. Part of the gap between Munchee and Maliban in top of mind recall can be explained by the long history of Maliban as a market leader, and that it was the dominant player for a very long time. Part of the gap between Munchee and Maliban in top of mind recall can be explained by the long history of Maliban as a market leader, and that it was the dominant player for a very long time.

Abortion and Human Rights | An Analysis

Abortion and Human Rights | An Analysis What is Abortion? The word ‘abortion’ comes from the Latin word ‘aboriri’ meaning ‘to fail to be born’. Abortion can be defined as the premature expulsion of a foetus from a womb (termination of pregnancy). In matters of ethics abortion usually refers to the intentional destruction of a foetus in the womb. Why do women have abortions? Find out that the foetus is disabled or deformed. Mother is underage and would not be able to look after the baby. The foetus is carrying a hereditary (genetic) illness. Mother got pregnant by mistake and it is used as a form of contraception. The mother will die if she continues her pregnancy. The mother is underage (16) and faces physical harm if she goes full term (as not developed well enough). The mother has been raped and become pregnant. It is used to cover up an affair. In some cultures, where sons have a higher economic value women can sometimes decide to abort if the foetus/embryo is female. Women in the workplace and career minded. The Legal Position of abortion in the UK In the UK abortion became illegal in the nineteenth century when the penalty for having an abortion was life imprisonment. Women trying to escape the unwanted pregnancy were forced to use unreliable and dangerous methods, including poisonous drugs, knitting needles, blows to the abdomen etc. If a woman had money, she was discreetly taken to a clinic for an illegal abortion. For those without money the only option was ‘back street’ clinics where untrained people performed the operation. Knitting needles were routinely used for this ‘operation’, but there was rarely pain relief. Poor hygiene and (sometimes) banned drugs were another feature of back street abortions. Many women haemorrhaged (very heavy bleeding-often life threatening) and some bled to death rather than go to hospital where their symptoms would be recognised. Many people were appalled by the number of women suffering and dying as a result of illegal (‘back street’) abortions. Due to pressure from the public, an abortion Reform Bill was introduced. This became LAW in 1967 and took effect in 1968. The Abortion Act of 1967 (Revised 1990) stated that: Abortion is legal if two doctors independently agree that one or more of four reasons for it exist: The mother’s life is at risk if the pregnancy continues. The mother’s mental or physical well-being is at risk. Scans or tests show the foetus is badly or physically disabled, or has a deformity, meaning it is unlikely to live at birth. There is risk of harm to existing children. The main time limit was lowered from 28 weeks, to 24 weeks in 1990 (Human Fertilisation and Embryology Act). However, the law allows an abortion at any stage of the pregnancy if the doctors agree that continuing the pregnancy would involve risk to the life of the mother or if there is a substantial risk if the child were born that it would be seriously handicapped. The biological father has no rights and cannot, in law, stop an abortion. (In 1987 an Oxford University Student lost his attempt in the courts to prevent his girlfriend aborting the child they had conceived). Most abortions in Britain are performed under the part of the Abortion Act which allows abortion if the pregnancy involves a risk to the physical or mental health of the mother. Many doctors involved in abortion argue that if a woman is determined not to have a child, to refuse her an abortion poses a possible threat to her mental health. It was the rape by British soldiers of a young girl in 1938, which justified Dr Aleck Bourne carrying out an illegal abortion in order to safeguard her mental health. At trial he was acquitted. The precedent established grounds for abortion as an exception and eventually became the basis on the 1967 Abortion Act. How are abortions performed? Vacuum Aspiration: (Suction abortion) Under general anaesthetic neck of womb (cervix) is dilated (opened) by probes. Suction then used to remove contents of uterus. Larger pieces of foetal tissue (usually the head) are crushed and pulled out with forceps. Dilation and Curettage (D C): Scraping instrument (curette) is used and contents of the womb are scraped out. Dilation and Evacuation (D E): Instead of a curette, small forceps are used to crush the contents and pull it out in bits. Prostaglandin’s (induced premature labour): This type of abortion is used in very late abortions and is rare in the UK. Hormones called prostaglandins are injected to bring on labour, which may last for 8 to 22 hours. A poison may be added to the womb to kill the foetus before delivery. RU486 pill will induce an abortion if taken in the first ten weeks of pregnancy. Why is abortion so controversial? Abortion is now commonplace and in many countries tens of millions of abortions take place every year. Although abortion is legal, its morality is still disputed. Religious organisations, such as the RC Church campaign against the availability whilst many women’s right groups campaign for greater access. The key ethical dimension in the abortion debate is whether there should be an absolutist prohibition of abortion on the basis of divine law, natural law or human rights or whether there are situations in which it should be made available. There are two central issues in relation to abortion: Whether the foetus is a person or potential person Whether the foetus has rights, and, if so, how these are to balanced against the rights of the mother. 1. When do humans become persons and become part of the moral community? The status of human life between conception and birth is central to the abortion debate. Whilst some form of life is clearly present at conception, whether that form of life should get the full protection of the law as a ‘person’ is disputed. Not all-human tissue is a person as not all living cells are persons. Living cells such as cancer cells for example are not persons. If things like bacteria or plants are considered for example, very few people would argue that they should be protected simply because they are alive. In terms of abortion, if the foetus/embryo is to be classified as a ‘person’, then abortion may be considered as the equivalent to a form of murder. Opponents of abortion argue that to kill a foetus is to murder a human person. Pope Pius IX in 1869 declared that a foetus is a human person from conception and therefore abortion is murder. This claim is supported by the fact that all necessary genetic material is present at conception and the foetus continues development from conception until born as a human being. Critics of this position argue that a fertilised egg is not a person. In ‘A defence of abortion’ (1971) Judith Jarvis Thompson accepts that there’s a continuous development but suggests that there is a point at which it is not a human being. Let’s consider when the foetus could be classed as ‘human’: Conception: In effect this is the point in which life begins and this is the argument given by opponents of abortion who say that this is the point at which a pre-embryo should be considered as a person. Others disagree with this, as the chromosomes do not develop until the third day and half of all fertilised eggs do not attach themselves to the wall of the womb, therefore cannot become babies. Physical sign: Some say that the foetus should be considered human when there is a physical sign, but what? From the 22nd day the heart beats and by day 42 the foetus is recognisably a human baby. Some argue that the foetus is human when the brain has developed activity, implying that the brain has some form of consciousness, which is crucial for making human beings what they are. Others argue that when the foetus has developed organs it should be considered human, but what organs and at what stage of development? Consciousness may be suggested as a definition of personhood as it cannot be applied to all living tissues, as it applies to sensory experiences and the ability to feel pleasure and pain etc. The only problem with this is that consciousness would include many animals and most people would argue that an animal is not a person in the same sense as humans are. The presence of rationality and our ability to develop complex language are distinctive features of ‘personhood’. Perhaps self-consciousness or self-awareness defines personhood? This includes a sense of our past and our future. However, very young babies are not self-aware in this sense, and most would argue that killing babies is killing human persons. Viability: some say that a foetus should be considered a person when ‘viable’ (can survive independently of mother). Currently a foetus is seen as ‘viable’ at 24/25 weeks. There are two objections to this: Many people have tried to ‘draw a line’ at a particular point in which a foetus is to considered viable and say that before this point a foetus is a bundle of tissue. The problem with this is that there is no easy way of drawing that line. The age at which the foetus can survive outside the womb is constantly reducing as medical technology progresses, therefore what is viable now may not be in five years. It is now possible to keep a 21-week foetus alive in an incubator and with intensive care, yet abortion is allowed at up to 24 weeks. One could say that until the main organs are formed the foetus is not a person, but which organs are essential and at what stage of the development of the organs? Many people are dependent upon medical technology to stay alive, such as dialysis. We do not consider these people not to be ‘viable’; we consider them to be persons, despite their medical conditions. Shouldn’t the same be applied to the foetus? Ensoulment: ‘Ensoulment’ means having a soul attached to something. This is a very different suggestion as to when the foetus/embryo becomes human and is based mainly on religious ideas. It is argued that the most important aspect of being human is having a soul; therefore a foetus/embryo becomes human at the point when the soul is attached. Augustine maintained that a soul was implanted at 46 days, although he condemned abortion at any stage. Aquinas maintained that the souls of girls were implanted at 90 days and boys at 40 days. In the 17th Century however, the RC Church stated that ensoulment took place at conception, therefore the fertilised egg is a human person. Birth: Before the foetus is born it is part of the mother’s body and after this it has certain independence and does not have to rely on its natural mother. Mary Anne Warren in 1991 argued that birth marks the point of true moral status. (Singers, ‘A companion to Ethics’) she sates ‘birth, rather than some earlier point, marks the beginning of true moral status’. She argues that if a foetus is to be considered a person then so should sperm. Does this mean that we need to protect the rights of sperm? She states that birth provided a clear boundary. Legislation in many countries allows abortion in exceptional circumstances up to birth but regards the deliberate killing of the baby after birth as murder. Warren’s argument is vulnerable as a foetus of 34 weeks is quite clearly viable and if aborted is likely to live outside the womb and may actually have to be left to die. Is a foetus that is capable of surviving outside the womb entitled to moral rights? The potential to become a person: It could be argued that the foetus is a potential person, as has the capability of becoming human and thus should be treated as one because of this. Many philosophers would argue against this. Potentiality does not necessarily imply that full legal status should be awarded on the basis of what it has the potential to be. A potential victory is not the same as an actual victory, having the potential to pass exams is not the same as actually passing them and a potential person is not equal to an actual person. The definition of personhood remains unresolved, as it is an agreement over the point of which a potential human being becomes a full human being. I could not find any recent statistics relating to the number of abortions at different stages in the UK and on what grounds. However, the following tables refer to abortions in England and Wales (1996) and are taken from Wilcockson’s ‘Issues of Life and Death’. Wilcockson’s source for this was ‘Office for National Monitor AB 97/4 (July 1997)’ Table 1: Abortions in England and Wales, 1996 Weeks of pregnancy Number of abortions Under 9 weeks 69,926 9-12 weeks 85,083 13-16 weeks 14,779 17-20 weeks 5,266 21-24 weeks 2,078 24 weeks and over 92 Unknown 1 Total 177,225 The above table indicates that most abortions in England and Wales take place within the first 9-12 weeks of pregnancy. Table 2: Number of abortions in England and Wales for each of the statutory grounds, 1996. A: Risk to mother’s life 138 B: To prevent grave permanent injury to mother 2,471 C: Risk to mother’s physical or mental health 171, 175 D: Risk to existing (born) children’s health 12,227 E: Substantial risk of serious disability of child 1,943 F: In emergency – to save mother’s life 3 G: In emergency – to prevent grave permanent injury to mother 0 Total (Doctors sometimes cite more than one category for reasons for abortion) 177,225 The above table indicates that most abortions are carried out under the ‘physical or mental’ health part of the act. The argument over when ‘life’ begins is ongoing and probably will be for a long time. Medical advances have made abortion easier and can also save the life of the unborn earlier. The debate is likely to continue and be hotly debate. The question you should perhaps ask yourself is when do you think life begins? When do you think a foetus/embryo can be considered a ‘person’ and therefore have rights? The table below may help you answer this question, although it must be stressed that this is only a short summary. At conception: Embryo starts growing from day one. This is when fertilization happens. The fertilized egg does not attach itself to the wall of the womb until day twelve (50% of fertilized eggs will not attach). At 1 Month (0.5 cm): Heart pumping since 18th day. The beginnings of eyes, spinal cord and nerves, lungs, stomach, intestines, liver and kidneys. At 2 Months (2.5-3.5 cm): Arms and legs become distinct and tiny fingers and toes appear. All internal organs of an adult, at various stages of development, are present. The first bone cells begin to be formed. Brain waves can be detected from about the sixth week. At 3 Months (6-8 cm): Development continues. The mother may feel the foetus kicking as it flexes its muscles. The heartbeat can be detected. The foetus now looks clearly like a human baby. At 4 Months (12-18 cm): The head has distinct human features and may have hair. The skin is pink, and the bones are closing to form joints. At 5 Months(25-30 cm): Developing rapidly and very active. At 6 Months (28-34cm): Eyes may now open. All systems are formed and are just growing in size. At 7-9 Months (36-56cm): Grows in size and fat is deposited to help survival at birth. Does the foetus have rights, and, if so, how are these balanced against the rights of the mother. If the foetus/embryo is seen as human at a certain stage it then has rights. If the foetus or embryo is regarded as a person, how then does one balance its rights against the right of the mother? A philosophy professor from Kansas, Don Marquis argued that killing in general is wrong because it deprives an individual of a future, which contains value. Most abortions, therefore, are immoral since they deprive the foetus of a future containing value. The foetus then has the right to life. Marquis argues that since it is wrong to kill rational and morally significant persons in principle it would be permissible to kill infants. Do we then allow abortion and the murder of infants because they are not rational? The feminist position began from the perspective of women’s rights. Mary Anne Warren put forward the case for granting women the ‘right’ to have an abortion arguing that the absence in the past of safe legal abortion led to undesirable consequences. (‘Back street’ abortion). Warren goes on to say that abortion must be permissible to guarantee a woman’s human rights. The World Health Organisation (WHO) backs this statement up with their statistics showing that 200 000 women are killed every year by unsafe abortions. To be forced to bear a child brings with it the hardships of possibly giving up work, therefore income, education, freedom etc. Prohibitation of abortion infringes these rights. Warren does say that killing is wrong, but to deny an abortion would deny a woman’s rights. Beverley Harrison in an article ‘Our right to choose’ argues forcefully for the rights of the mother. She maintains that since the woman carries the embryo/foetus and has to go through the pain of childbirth and has to care for and support the child then it is the woman’s decision, which should be paramount. Harrison stated that: ‘The well-being of the woman and the value of her life plan should always be recognised as of intrinsic value’ (Page 152, ‘The Puzzle of Ethics’ Vardy Grosch) A philosophy professor Judith Jarvis Thomson argued that even if we grant that foetuses have a fundamental right to life, in many cases the rights of the mother override the rights of the foetus. Accordingly abortions should be allowed in rape, life-threatening pregnancies and contraception failure. If a foetus was given equal rights then court cases would result and a mother could be forced to have an unwanted child. A court could even force a woman to go through a dangerous childbirth as her life would be considered to be of no more valuable than that of the foetus. What about Christianity? The Bible: There is not one clear message about abortion found in the Bible. In Exodus 20: 18 it is stated ‘Do not kill’ which is a quotation used by many Christians in opposition of abortion. This passage may be seen as only applying to a ‘person’ and the issue of when the embryo/foetus becomes a person crops up again. In response to this a Christian may argue that the Bible teaches that a foetus/embryo is human as it is stated ‘Before I formed you in the womb I knew you’ (Jeremiah 1:5) and ‘You created every part of me; you put me together in my mother’s womb†¦.. When I was growing there in secret, you knew that I was there, you saw me before I was born’. (Psalm 139:13 15). This does seem to imply that someone is human before birth. We are told in Exodus 21:22-25 that if a person injures a pregnant woman, causing miscarriage, compensation must be paid. This suggests that the life of the ‘unborn’ has both significance and value. However at the same time in Exodus 21:22-25 we are also told that if the mother dies then a ‘life for life’ policy applies. This suggests that the unborn does not have the same significance and value as the mother. The birth and role of Jesus is said to have been foretold, therefore his life was mapped out before birth. In opposition to this however are passages which suggest that the foetus need not be considered human ‘a stillborn child comes without meaning, it departs in darkness’ (Ecclesiastes 6:3-4). This COULD be taken to imply that a foetus/embryo lacks humanity and we are also told that a man does not become a human being until he receives ‘breath of life’ (Genesis 2:7) Christian Tradition: Generally most churches are in favour of preserving human life but there are many different teachings on the status of the foetus. Many Christians accept abortion in order to save the life of the mother, or in the case of a severe deformity, but others argue that a person born with a deformity can still give and receive love as a human being and that the detection of such defects should not be grounds for an abortion. The RC Church maintains that it is intrinsically evil and totally condemns it. Abortion goes against Natural Law, as it is not fulfilling the purpose of life ‘to live, to reproduce’ and also goes against the word of God. (See also Ensoulment). Pope Pius IX in 1869 decreed that anyone performing or allowing an abortion was wrong. The Catechism of the Catholic Church (1994) states that, ‘Human life must be respected and protected absolutely from the moment of conception. From the first moment of his existence a human being must be recognised as having the rights of a person – among which is the inviolable right of every innocent being to life.’ (Issues of life and death, Michael Wilcockson, page 36) The Roman Catholic Church, and indeed most Christians would argue that since man was created in God’s image and likeness, so then is the foetus/embryo. God alone is lord of life and death and humans do not have the right to take away life. The ‘sanctity of life’ argument may be given here. This is to say that life is sacred and that human life is valuable in itself. The term ‘sanctity of life’ means ‘a life set aside’ and Christians would say that God creates each life specially and uniquely. Human life is therefore intrinsically (i.e. in itself) worthwhile and we have a duty to preserve this life. There is of course in Natural Law and the Christian position the principle of double effect. Double effect is a theory used to justify the termination of a foetus/embryo if the intention of doctors is to save the life of a mother. (E.g. hysterectomy) In the case of an ectopic pregnancy, where the fertilised egg attaches itself to the fallopian tube the double effect justifies the removal of the fallopian tube as if it is not removed the mother will die. In this case if the pregnancy continues the mother and foetus will die and the double effect theory justifies the removal of the fallopian tube, because the intention is to save the mothers life even though the effect of doing so leads to the death of the foetus/embryo. Even pro-life groups, such as SPUC would allow for DDE. What do ethical theories say on this matter? Virtue Ethics: Would abortion be allowed in virtue theory? Virtue Ethics concentrates on what a person is, rather than does. The aim of virtue ethics is a good life of well being (eudaimonia) It is an ethic of aspiration to be a better person and looks to those who have set a good example. Aristotle classifies the virtues and we must try to find the ‘Golden Mean’. Would abortion be classified as an ‘extreme’ of behaviour? Well as you will remember Robert Louden argued that virtue ethics is of little practical use to someone faced with a moral dilemma as virtue ethics fails to address dilemmas, which arise in applied ethics, such as abortion. He gave the example of a woman who discovers that her baby will be born with severe disabilities. He asks how are we to know what a good person would do? How are we to choose between compassion and bravery? Having an abortion could be classed as ‘cowardice’, ‘rashness’ etc. and one could say that Mother Teresa as a Christian would not have an abortion, but what about in certain circumstances? What if virtues clash? Since Virtue Ethics focuses on the person, rather than actions or consequences of actions can we really say whether an abortion would be acceptable? For Aristotle you cannot explain ‘right’ or ‘wrong’ simply in terms of rules, but rather you can show how a virtuous person can be trusted and do the right thing in a variety of situations, each of which may be unique and cannot therefore be covered by a way of a rule. Relativist/teleological ethical theories and abortion: a)  Ã‚  Ã‚  Ã‚   Situationism (Notes from page 53, ‘Issues of Life and death’ (Wilcockson) Since the 1960s many Christian theologians have argued that Jesus’ teaching was based on giving people their own freedom to act responsibly based on the principle of generous love or ‘agape’. Joseph Fletchers influential book ‘Situation Ethics’ (1966) coined this term and set out a Christian calculus, which decides each case on its own merits. This theory is absolutist in the agape part but this is the only absolute rule. Fletcher claimed that in any given situation the ‘right’ thing to do was that which love required. Whilst this provides an alternative Christian ethic which is consistent with the Gospel representation of Jesus traditional Christian thinkers have rejected it. (E.g. Pope Pius XII-see Relativism booklet for more information). Fletcher outlined a case in 1962 where an inmate of a mental hospital raped an unmarried, schizophrenic girl. Her father’s request for an abortion was denied because the only moral and legal grounds for abortion would have been if her life were at grave risk. Fletcher finds it shocking that this kind of rigid legalism could deny compassionate treatment. The situationist answer cannot really be predicted because each case is unique but in the above case Fletcher argued that her mental health is paramount and furthermore ‘no unwanted and unintended baby should ever be born’. Fletcher however, is far from clear about why and to what extent the embryo or foetus should be included in the calculus: (Taken from p.53, ‘Issues of life and death’ (Wilcockson) They (situationists) would in all likelihood favor abortion for the sake of the patient’s physical and mental health, not only if it were needed to save her life. It is even likely they would favor abortion for the sake of the victim’s self respect or reputation or happiness or simply on the ground that no unwanted and unintended baby should ever be born. They would, one hopes, reason that it is not killing because there is no person or human life in an embryo at an early stage of pregnancy (Aristotle and St Thomas Aquinas held that opinion-see Ensoulment), or even if it were killing, it would not be murder because it is self-defense against, in this case, not one but two aggressors. First there is the rapist, who being insane was morally and legally innocent, and then there is the ‘innocent’ embryo, which is continuing the ravisher’s original aggression! Even self-defense legalism would have allowed the girl to kill her attacker, no matter that he was innocent in the forum of conscience because of his madness. The embryo is not more innocent, no less an aggressor or unwelcome invader! Is not the most loving thing possible (the right thing) in this case a responsible decision to terminate the pregnancy? (Situation Ethics (1996) p.39) Many people use the situation ethics principle to judge whether or not someone should have an abortion. Because situations differ in so many respects, then so should our response. Situation Ethics as put forward by Fletcher encouraged people to use the ‘agape’ principle – what would be the most ‘loving’ thing to do in the circumstances? For this theory the question of whether abortion is morally acceptable cannot be answered, as it would depend upon each situation and specific circumstances of a particular mother. This system allows for flexibility but the problem is, how can we be certain that our response will, in the long run, turn out to be the most loving? (Many people who have abortions regret their decision in later life.) Also if there are two ‘people’ involved, whose interest’s conflict, how should we decide whom to ‘love’? If an end result serves ‘agape’ best then it is right. b) Utilitarianism: A short summary: This theory can be summed up by the phrase, ‘the greatest happiness for the greatest number’. At a first glance it may seem that abortion is straightforward for a utilitarian. If the mother’s happiness would be greater is she had an abortion, then abortion would be the right course of action. However, it is more complicated than this, as other factors need to be taken into account. The foetus needs to be taken into account as if the foetus is to be considered ‘human’ then its happiness should also be taken into consideration. This does not mean that abortion becomes wrong. However, it does suggest that abortion would be ‘right’ in certain circumstances, such as if the mothers life is in danger. (May be more happiness if mother survived, rather than if both the mother and foetus died.) In addition, other family members perhaps need to be taken into consideration for the ‘greatest happiness for the greatest number’. If other family members did not want the mother to go ahead with the abortion, or indeed if the father wanted the child, then abortion here would not be the ‘greatest happiness for the greatest number’. In the case of pregnancy as a result of rape for example, the following would need to be considered alongside the ‘greatest happiness’ principle: Trauma for mother and existing family Trauma for any child of rape in learning of their violent origins. Absolutist/deontological ethical theories and abortion: Natural Law: This has already been covered in the ‘Christianity’ section of this booklet and the potential to become a person and Ensoulment should also be taken into consideration. When the Christian examines natural law it is clear that nature’s design is that women are naturally equipped to have children. It is thus, natural for intercourse to lead to conception and for women to be pregnant and bear children (Final cause of sex=procreation.) Natural Law theory would claim that abortion is wrong, as the purpose of the body is to reproduce. The RC Church has opposed abortion for a considerable amount of time based on this tradition. There is however, the principle of double effect, which could be applied here. This principle could be seen as ‘relativist’, although the theory of Natural Law is essentially an absolutist theory. The doctrine of double effect consists of fou

I Know Why The Caged Bird Sings :: essays research papers

# Quote Reaction 1 pg. 8 Chap. 1: "The sounds of the new morning had been replaced with grumbles about cheating houses, weighted scales, snakes, skimpy cotton and dusty rows. In later years I was to confront the stereotyped picture of gay song-singing cotton pickers with such an inordinate rage that I was told even by fellow blacks that my paranoia was embarrassing. But I had seen the fingers cut by the mean little cotton boils, and I had witnessed the backs and shoulders and arm and legs resisting any further demands." The importance of this quote is really integral to the rest of the book. To be able to criticize something you should have experienced it. This passage shows that Maya has experienced the non-privilege of being a Negro during the thirties, and experienced it at a young age. Maya wrote that she later confronted the stereotype, She had a right to because of her previous position. 2 pg.14 chap. 2 "Bailey and I decided to memorize a scene from The Merchant of Venice , but realized that Momma would question us about the author and that we'd have to tell her that Shakespeare was white, And it wouldn't matter to her whether or not he was dead. So we chose 'The Creation' by James Weldon Johnson " This excerpt is crucial because it puts yet another facet on segregation. Really the blacks and whites were both afraid of each other equally. The only difference was that the whitefolks were in a position to act on those fears. 3 pg.25 chap 4. "In Stamps the segregation was so complete that most Black children didn't really, absolutely know what whites looked like. Other than they were different, to be dreaded, and in that dread was included the hostility of the powerless against the powerful, the poor against the rich, The worker against the worked for, and the ragged against the well dressed. I remember never believing that whites were really real." The first line really does a good job of summing up the situation in Stamps but the key section of this quotation is the very last line. "I remember never believing that whites were really real." This statement really makes the whole situation clear in that it really brings home how someone can think that an entire race of people don't exist. 4 pg.48 chap 7 "The judge asked that Mrs. Henderson be subpoenaed, and when Momma arrived and said that she was Mrs.

Quocirca Insight Report: Operations Management in UK Financial Services

QUOCIRCA INSIGHT REPORT November 2007 Contacts: Sharon Crawford Quocirca Ltd Tel +44 7989 243830 sharon/[email  protected] com Operations Management in UK Financial Services How effectively is technology being applied to help to monitor and improve operations performance? The extremely competitive nature of the financial services industry today and the changing landscape of customer expectations and their approach to investing in financial products, puts an onus on suppliers to consider how well they are dealing with new and existing customers’ business transactions. Much is written about the frontline call centre operations, but this report focuses on the back office activities, the operational area where complex applications and enquiries are processed. This research investigates how technology is being applied to manage and improve operations. ? Operations management is a critical business task contributing significantly to the overall performance of financial services companies Over 90% of UK financial services companies set and publish operational targets. Reducing processing times and costs are targeted alongside measuring the quality of work done. Production Management methodologies such as Lean and Six Sigma are being applied extensively to manage work throughput. The UK has embraced the use of specific operations management systems 85% of UK financial services companies report having specific systems in place to support operations management. Reporting, document and process management tools and to a lesser extent, staff forecasting and scheduling applications are all components of such systems. Such systems have had an impact on improved operations The survey shows that introducing operations management systems has led to improved customer service, reduced costs and better staff utilisation. However, despite a reasonable degree of satisfaction with such systems, there is room for improvement. Also, although staff attitudes should be important, motivation and staff satisfaction levels have shown lower levels of improvement. Real ime visibility of work is vital Visibility of who is doing what at any point in time, with the ability to reallocate work during the day, is stated as being very important to effective operations management but this is not always an integral part of the operations management system. Although continuous improvement to operations management performance is desired, obstacles do exist. The survey found that staff resistance to change and to being monitored, competing demands of other revenue generating priorities and dealing with legislation, were all di fficulties faced when trying to introduce initiatives to improve operations. Against this, establishing a return on investment (ROI) for operations management improvements can be difficult. Many systems in place today are based on client/server technologies but there is desire to move toward pure web applications This opens the door for Software as a Service offerings (SaaS). However, SaaS is not perceived as a way to support operations management systems. Is this because there are genuine doubts about SaaS or due to a lack of understanding of the potential benefits of the SaaS model? Bob Tarzey Quocirca Ltd Tel +44 1753 855794 ob. [email  protected] com ? ? REPORT NOTE: This report has been written independently by Quocirca Ltd to address certain issues found in today’s organisations. The report draws on Quocirca’s extensive knowledge of the technology and business arenas, and provides advice on the approach that organisations should take to create a more effective and efficient environment for future growth. During the preparation of this re port, Quocirca has spoken to a number of suppliers and customers involved in the areas covered. We are grateful for their time and insights. ? ? ? Conclusions Operations management is a complex area to which to apply technology. Control and continuous improvement require effective matching of a variety of tasks and timing with resource and skills. The investment needed to put detailed applications in place is significant but has been found to be effective in many organisations that have done so. There is potential to improve further by using systems that allow real-time visibility of the progress of dealing with customers’ business. An independent study by Quocirca Ltd. www. quocirca. com Operations Management in Financial Services Page 2 Introduction Performance Management in the financial services industry is vital and well supported by the suites of Corporate Performance Management software that enable these companies to budget, plan and report in an accurate and timely fashion. Underpinning successful performance management is the need for predictable and controllable day to day operations management, both front and back office. Much has been written in the media about the use of tools to achieve this in call centres in businesses today. This report is based on research was carried out to investigate the extent to which software applications are used to monitor and measure the effectiveness of handling customer business – focusing on the back office operations and specifically addressing organisations in the UK. attempting to include some measurements of the costs of rework, (figure 2). Figure – 2 Do organisations attempt to quantify and measure business value of perational measures? 0% Reduced Costs Number of complaints Customer Response times Staff utilisation Staff satisfaction Re-work Detailed quantifiable measures None, but plan to Other Some measures Not directly related 20% 40% 60% 80% 100% Operations Management is a critical business task All the organisations that were interviewed set and publish achievement metrics against customer service level agreements, with 93% setting different targets for different types of customers. 5% of organisations interviewed set and publish performance levels against targets for operational staff and use both team and individual measurements although monitoring individual performance is more difficult and given a lower degree of importance. It is interesting to note the types of measures that are used and the research found that there is an increasing focus on measuring the quality of work alongside the expected measures of costs and speed of processing work (figure 1). Figure – 1 There is some weight given to measuring staff satisfaction and linking this to financial returns for the business. Quocirca believes that it is important to consider the impact of systems on staff satisfaction and that any attempt to apply technology to improve operations management should take account of the way in which the system impacts on the staff dealing with customer business. Production control and continuous improvement Operations management is often associated with production of physical goods and methodologies such as lean and six sigma are used to address quality and efficiency improvements. These approaches study the work stations, the efficiencies of moving work from one to the other, space and time improvements and so on. The philosophies can arguably be applied to moving paperwork through an office, each work station being a person with specific skills. Quocirca tested this with the Operations Managers in the survey and a surprising 100% say they operate a philosophy of continuous improvement, with 66% using either lean or six sigma approaches. Use of these methodologies has changed since they were first introduced by Frederick Taylor, when employees were often considered to be a liability, with organisations applying streamlining and lean manufacturing principles to keep employee costs down. The approach to increasing productivity was based on a carrot and stick approach reward success, punish failure – together with making the tasks quite granular so that individuals could become extremely quick and skilled at a limited set of tasks. Today employees are considered to be assets – the only appreciating asset in many organisations. Organisations use words like engagement, empowerment and job satisfaction when talking about their approach to employee productivity. And in general, although it is easy to forget that this is not true of all employees, staff do like to feel that they can add value and participate in decisions that may affect them. Gaining the buy-in of employees is an important factor when introducing systems to monitor staff productivity and the quality of work being done. Prioritisation of operational factors measured 0% Quality/error rates Time taken for a process Cost of processing No of complaints Speed of response 5 – Most important 4 3 2 1 – Least important 20% 40% 60% 80% 100% Although quality of work is ranked as being of the highest priority, the performance targets set for both team and individual measurement still put productivity above measurements of quality and good customer service. This could be because productivity is easier to monitor or because, in reality, cost measurements are associated with the level of work throughput. Measuring staff satisfaction is given a much lower priority in general, with only 24% of organisations stating that this measurement is very important for teams, 11% for individuals. There is evidence however, that organisations are aware of the costs of re-work and of handling customer complaints. When asked about establishing a return on investment for operations management systems, many organisations are  © 2007 Quocirca Ltd www. quocirca. com September 2007 Operations Management in Financial Services Page 3 Use of software applications 85% of those interviewed have specific applications to measure and monitor operations with over 80% expressing that these systems are satisfactory or very satisfactory. Some shortfalls were noted which included the difficulties in monitoring individual performance and in measuring the qualitative aspects of work. Those that have these specific applications report significant improvements (figure 3) but it is surprising that the use of an application does not have a more far reaching impact, despite being considered to be successful. Figure – 3 Figure – 5 How important is it to: 0% Know, at any point in time, who is doing what? Reallocate work during the day? 20% 40% 60% 80% 100% 5 – Very important 4 3 2 – Not important at all Impact of operations management system on: 0% Improved customer service Reduced operational costs Enhanced quality of applications Improved staff utilisation Improved staff motivation Major Impact Some Impact No Impact 20% 40% 60% 80% 100% This is likely to require specific systems focused on defining the steps involved in a process and then measuring throughput, over and above the use of standard BI (business intelligence) tools to measure the overall metrics of work throughput. Obstacles to improving operations Despite the high level of importance that this survey found was attributed to operations management improvements, and to investing in specific systems to enable this, obstacles do exist, notably: ? staff resistance to change and to being monitored ? other priorities in the organisation which included dealing with legislation and responding to introduction of new revenue generating products ? establishing an ROI. Figure – 6 It is perhaps the complexity of what actually comprises such an application – which includes management information systems (MIS), document and process management as well as scheduling and forecasting capabilities. Quocirca believes that it is complex to bring such technologies together into a comprehensive application supporting the full requirements of operations and there is room for those vendors that focus on specific elements to develop a purpose built product to support operations management. Figure – 4 What are the main obstacles to improving operations management? 0% 20% 40% 60% 80% 100% Essential components of an operations management solution 0% Management information system Document management Workload scheduling Staff forecasting Process management 20% 40% 60% 80% 100% Staff resistance to being monitored/measured Staff resistance to change Establishing an ROI Other priorities in organisation Major problem Somewhat of a problem Minor problem Not a problem Technology usage 4 3 2 1 – Not important 5 – Very important Real-time visibility of work Applying production management techniques to work throughput should mean that it is possible to know exactly where a piece of work is at any time. The key issue is whether this would apply to tracking a piece of customer business, be that an application for a new product or a query or claim against a product. The survey found that having real-time visibility of work and being able to re-allocate to the appropriate person was important. This may mean an overhead of logging individual actions on an operations management system, but it is clear that this is perceived as beneficial.  © 2007 Quocirca Ltd The operations management systems in use today are predominantly client/server (61%) but when asked what technology would be expected to be in use in two years’ time, there was a shift to pure web technology (91%). Respondents were also asked about hosted offerings either as pure hosted or as software as a service (SaaS). Neither of these was perceived to be important to operations management delivery today or in two years’ time. Technically there is nothing to prevent the move to SaaS applications and it could be a lack of awareness of what the benefits of SaaS are, that produced this response. However, it is likely that operations is perceived as very specific to each financial services organisation and that this would put it behind other areas of the business in the move to SaaS technologies. September 2007 www. quocirca. com Operations Management in Financial Services Page 4 Interview Sample Distribution The information presented in this report was derived from 75 interviews with senior IT influencers and Operations Managers completed in May 2007. It was important to get an even balance of views so 46% of the respondents were directly involved in operations management with 54% representing the IT function. The sizes of the organisations contacted, selected by the number of employees to be a representative sample of UK Financial Services organisations, were 5000+ employees, 57% ; 1000 – 5000 employees, 43%. The Financial Services organisations were spread over Insurance and Assurance, Retail and Investment Banking, Pensions and Building Societies. About eg eg is the leading provider of Operations Management solutions that form a rapid performance improvement programme to Improve Customer Service Delivery. Operations Management improvements are made through the deployment of two core products/services: ? ? Proprietary operational intelligence software packages Training and development for Managers and Team Leaders in Production management methodology g’s proprietary software package eg operational intelligence ® including eg work manager ® has been developed and refined over the last 15 years and form a comprehensive work, resource and performance reporting tool. It enables clients to gather information about the key factors affecting performance and, using eg’s operational management techniques identify appropriate decisions and actions that improve efficiency and redu ce costs within weeks. When implemented with the eg principles of operational management ® methodology, eg operational intelligence ® provides the opportunity for eg’s clients to double their productivity and dramatically improve customer service levels almost immediately. It also forms a foundation for continuous improvements in subsequent years. For more information, please contact: Sophie Goodwin Spreckley Partners Ltd T: +44 (0)20 7388 9988 E: [email  protected] co. uk About Quocirca Quocirca is a primary research and analysis company specialising in the business impact of information technology and communications (ITC). With world-wide, native language reach, Quocirca provides in-depth insights into the views of buyers and influencers in large, mid-sized and small organisations. Through researching perceptions, Quocirca uncovers the real hurdles to technology adoption – the personal and political aspects of an organisation’s environment and the pressures of the need for demonstrable business value in any implementation. This capability to uncover and report back on the end-user perceptions in the market enables Quocirca to advise on the realities of technology adoption, not the promises. Sponsorship of specific studies by such organisations allows much of Quocirca’s research to be placed into the public domain at no cost. Quocirca’s independent culture and the real-world experience of Quocirca’s analysts ensure that our research and analysis is always objective, accurate and challenging. Quocirca reports are freely available to everyone and may be requested via www. quocirca. com. Contact: Quocirca Ltd Mountbatten House Fairacres Windsor Berkshire SL4 4LE United Kingdom Tel +44 1753 754 838  © 2007 Quocirca Ltd www. quocirca. com September 2007