Analysis of the Fast Food Industry Essay

Introduction Airline industry is the topic I researched in this analysis. Companies in this industry provide scheduled domestic and international passenger transportation, mail and freight transportation. Major US companies include American Airlines, Delta, Southwest, and United Continental, as well as the air operations of express delivery companies such as FedEx and UPS. The industry key survival factors are efficient operations, reliability of services, and safety. The drivers of change are internet economy, globalization, and low cost competition. Based on the key survival factors and drivers of change, large companies enjoy economies of scale in purchasing and the ability to provide more extensive services. Small airlines can compete by serving local or regional routes. All the information was collected from online journals, news, and research and report papers. The sources include industry reports such as Hoover, Bloomberg, and Forbes. The data was organized by folders and then summarized i nto Words before putting in the paper. Each source was written in a separate Word file every time it was used. The analysis uses the Porter’s 5 forces and PEST analysis. Key Survival Factors In airline industry, demand depends highly on the health of the economy, which affects spending on business and leisure air travel. Since many costs are fixed, efficient operations act as a core factor to determine the profitability of airlines companies. The basic operations of airlines include acquiring and maintaining airplanes and airport facilities, acquiring passengers and/or freight, managing staff, and operating flights. The flight equipment (airplanes) that an airline uses is crucial to efficient operations. The next key survival factor for airline industry is safety. Air traffic is growing rapidly, airports are more congested, and  Ã¢â‚¬Å"with two million passengers in the United States boarding more than 30,000 flights every day, maintaining that safety record will be a challenge.† Therefore, all airline companies should have a procedures encompassing the theory, investigation, categorization of flight failures, and the prevention of such failures through regulatio n, education, and training. The company could have lost the public image if they don’t have a procedure in advance to response quickly enough in case of emergency. Last but not least, reliability of service is another key survival factor for airline industry. A positive public image could be developed among customers due to a reputation for reliable services, which can lead to more repeat business. Reliability in the airlines industry includes: reports of mishandled baggage, the on-time arrival of flights, involuntary boarding denials from overbooking flights, and passenger complaints. Those airlines that are able to control these elements could provide better service to the customer, and thus offer more reliable service. Drivers of Change The internet and e-commerce has completely altered the airlines distribution (the booking and ticketing of passengers for air travel). Nowadays, travelers can book e-tickets on their flights through the airlines’ websites or a third-party website. This has allowed airlines to eliminate paperwork, reduce operational expenses, and bypass travel agent commissions. Moreover, the potential in the global travel market makes airlines companies focus more on globalization. To facilitate international growth, U.S. airlines are lobbying for â€Å"open skies† treaties between the U.S. and other nations. These treaties are bilateral agreements that essentially deregulate travel between the involved countries, thus opening up certain markets to competition. â€Å"The U.S. currently has signed more than 60 open skies treaties with nations around the globe.† Finally, the rise of the low-cost carriers has forced a change in the competitive environment of the air travel industry. Southwest, and JetBlue implement low-cost strategies that allow them to offer relatively low airfares. These low fares change the entire industry and force rivals to lower their costs and decrease their fares in order to stay competitive. Overall Assessment The airline industry is currently not very attractive. Both business and  tourist travel are reduced when the economy slows. â€Å"Global aviation traffic typically rises and falls at twice the pace of economic output, so a change in the economy can double the impact for airlines.† Because of relatively high fixed costs of airplanes, airport facilities, and labor, airlines can’t easily adjust to reduced passenger traffic. Based on the financial results on Hoover’s database, the industry has a very low growth rate of personal consumption expenditures as of 2014, and it was forecasted to grow at an annual compounded rate of 4 percent between 2014 and 2018. Works Cited Mouawad, Jad, and Christopher Drew. â€Å"Airline Industry at Its Safest Since the Dawn of the Jet Age.† The New York Times. The New York Times, 11 Feb. 2013. Web. 16 Feb. 2015. . â€Å"Competitive Environment of the Airline Industry.† Competitive Environment of the Airline Industry. Web. 16 Feb. 2015. . â€Å"Good times for the Airline Industry.† The Economist. The Economist Newspaper, 27 Dec. 2013. Web. 16 Feb. 2015. . Fulton, Jeff. â€Å"Airline Industry Key Success Factors.† EHow. Demand Media, 29 July 2009. Web. 16 Feb. 2015. .

Free Essays on The Unmasking

The Unmasking â€Å"Any great work of art revives and readapts time and space, and the measure of it’s success is the extent to which it makes you an inhabitant of that world- the extent to which it invites you in and lets you breathe it’s strange, special air† (Bernstein). An artist must create a different universe, one that surpasses culture, time, and personal philosophies. This new universe should surround and open a viewer’s eyes and lead to a new understanding of their own world. An example of genuine art is Diego Rivera’s painting â€Å"Mother’s Helper† (Rivera), which displays the simplicity of life without technology. It display’s the love of family, and nature, drives a person to appreciate the things around them. Upon reflection of true art, the viewer’s philosophy, their path to the truth, should be reworked, against society and the mold they came from. An existentialist who has always sought the truth through persona l experience may come to the revelation that Jesus Christ displays the truth after being stirred by moving artwork. A pragmatist, who believed the end justifies the means, could realize that their pure form is in nature, as a transcendentalist (Newton). Being raised Roman Catholic (Priola 1), the author Cormac McCarthy adopted the spoon fed philosophy of his parents, later coming to his own conclusions, expressed in his novels. He expresses personal views of an evil society, attempting to stretch the perception of the reader, using a common focus. McCarthy has a â€Å"pattern of using characters who struggle against a brutal hostile world and All the Pretty Horses carries on the tradition† (Cormac 3). In most of his earlier novels, Blood Meridian, The Orchard Keeper, & Suttree, McCarthy uses these themes. A sort of revolution in the mind of the main character is also expected in the writings of McCarthy. His unique writing style of vivid imagery and integrating Spanish gives McCarthy a ... Free Essays on The Unmasking Free Essays on The Unmasking The Unmasking â€Å"Any great work of art revives and readapts time and space, and the measure of it’s success is the extent to which it makes you an inhabitant of that world- the extent to which it invites you in and lets you breathe it’s strange, special air† (Bernstein). An artist must create a different universe, one that surpasses culture, time, and personal philosophies. This new universe should surround and open a viewer’s eyes and lead to a new understanding of their own world. An example of genuine art is Diego Rivera’s painting â€Å"Mother’s Helper† (Rivera), which displays the simplicity of life without technology. It display’s the love of family, and nature, drives a person to appreciate the things around them. Upon reflection of true art, the viewer’s philosophy, their path to the truth, should be reworked, against society and the mold they came from. An existentialist who has always sought the truth through persona l experience may come to the revelation that Jesus Christ displays the truth after being stirred by moving artwork. A pragmatist, who believed the end justifies the means, could realize that their pure form is in nature, as a transcendentalist (Newton). Being raised Roman Catholic (Priola 1), the author Cormac McCarthy adopted the spoon fed philosophy of his parents, later coming to his own conclusions, expressed in his novels. He expresses personal views of an evil society, attempting to stretch the perception of the reader, using a common focus. McCarthy has a â€Å"pattern of using characters who struggle against a brutal hostile world and All the Pretty Horses carries on the tradition† (Cormac 3). In most of his earlier novels, Blood Meridian, The Orchard Keeper, & Suttree, McCarthy uses these themes. A sort of revolution in the mind of the main character is also expected in the writings of McCarthy. His unique writing style of vivid imagery and integrating Spanish gives McCarthy a ...

QA How and Why Should I Keep Track of Time on the SAT or ACT

QA How and Why Should I Keep Track of Time on the SAT or ACT SAT / ACT Prep Online Guides and Tips If you want to do well on the SAT or ACT, keeping track of time and how many questions you have left is extremely important. Sections are 35-60 minutes long on the ACT and 25-65 minutes long on the SAT. One of the leading reasons students perform poorly on either test is that they run out of time. And one of the leading reasons students run out of time is not because they're not aware of how much time is left. We'll go over the best way to keep track of time on the SAT/ACT in this article, including what timekeeping devices are and are not permitted on test day. Q: How Does Knowing How Much Time Is Left Help Me? Answer: It lets you plan out which questions to answer first. For each SAT/ACT section, most people agree that it's strategically best to start with the questions that are easy for you. You can then go back and answer the harder ones in an order that depends on how much time is left. If you have three hard questions and 15 minutes left, it probably doesn’t matter what order you do them in. On the other hand, if you only have five minutes left to do three hard questions, you should try to do the easiest-looking one first. But you can’t even make that choice if you have to rely on having a good view of the big clock on the wall or on the proctor's desk. Q: What Can I Bring to Time the Exam Sections? Answer: Not much. Unfortunately, neither test is very accommodating when it comes to timing devices. Both the SAT and the ACT have the following strict rules about what you can bring to the test. Rule 1: You Can't Bring a Cellphone This is for real. You are technically not even allowed to have a cellphone with you in the room, and you're certainly not allowed to look at your phone during the test or during the breaks in between sections. In practice, if you do take your cellphone with you to the testing center, you must make sure it is completely turned off. If you want to be really safe and know how to take the battery out of your phone, do it. Silent mode just isn't safe enough for the SAT or ACT. We say this because cellphones, even on Silent or Airplane mode, can beep or vibrate loudly for various reasons, from a national weather alarm alert to a software update that restarts the phone. And if your phone goes off, the test is over for you. Your test booklet will be confiscated and disqualified from being scored. More pertinently, even if you bring a cellphone with you to the testing center (which, again, is technically not allowed), you definitely, definitely can not use your cellphone, even just as a timer. Rule 2: You Can’t Bring Separate Timers The College Board explicitly lists "separate timers of any type" as something that cannot be brought in. This means no stopwatches, no kitchen timers, and no hourglasses. An hourglass is not an acceptable timekeeping device for the SAT or ACT. Rule 3: You Can't Bring Anything That Beeps If you use a beeping watch in a way that doesn't beep, it should be fine for the SAT/ACT. However, are you sure you won’t accidentally hit a button that makes it beep? Sure enough to bet your entire SAT or ACT score on it? The only way to guarantee your test won't get disqualified is to play it safe and just bring a watch that cannot make a beep. Q: What’s the Best Plan for Keeping Track of Time on the SAT/ACT? Answer: Use an analog (non-digital) watch that can’t beep but that you can easily reset. You can get a cheap non-digital watch for less than $15 on Amazon. If you’re not great at reading clocks, you can get an easy-to-read one that has the minutes marked on a ring around the watch face. Once you have your analog watch, practice using it as a timer with either of these two strategies. Strategy 1: Set Your Watch to Noon Right when each section starts, set your watch to 12:00 (so that the minute and hour hand are both on the 12). The minutes past 12:00 tell you how many minutes passed since the section started. It's an easier way to check how much time has passed than doing the mental math of, "So we started at 10:48, and it's 11:04 now, which means...16 minutes have passed? Probably?" The main problem with this method is that you still have to do some mental time math. For instance: "The 25-minute SAT Math No-Calculator section started at 12 pm and now it’s 12:07pm. How many minutes do I have left?" The answer is 18 minutes, but the time it took you to do the math in your head is lost time you could've been spending on the test. Save your math for the Math section and use this next trick. Strategy 2: Use Your Watch to Count Down to Noon An alternative to setting your watch exactly to noon is to set your watch to a section's length before the hour. For instance, if the section is 25 minutes long, set your watch to 35 minutes past the hour (which is 25 minutes until the next hour). The watch’s countdown to the end of the hour will also be a countdown to the end of the section. Here's a handy table with the times you should set your watch to at the beginning of each section: Section Length (minutes) Set your watch to... What sections are this length? 25 11:35 SAT Math (No Calc) 35 11:25 SAT Writing and Language, ACT Reading, ACT Science 40 11:20 ACT Essay (optional) 45 11:15 ACT English 50 11:10 SAT Essay (optional) 55 11:05 SAT Math (Calculator) 60 11:00* ACT Math 65 10:55* SAT Reading *To keep the countdown to noon consistent across all sections, it's better to use 11 and 10:55 here, but you could theoretically use a different time if you wanted. Setting your watch to count down to noon is helpful because: You effectively have a timer, giving you an edge. It's completely within policy, since you are allowed a non-beeping watch. It's better than doing time math. Of course, if you use this method, don't forget to reset the watch at the beginning of each section. And when the test is over and you’re out of the test room, set the watch back to the real time. What’s Next? Take advantage of your new knowledge of how to keep track of time by reading our tips on saving yourself time during the SAT. Still worried you'll run out of time? We have more great tips on how to avoid running out of time on SAT/ACT Reading and SAT/ACT Math. How long exactly are the SAT and ACT, anyway? Find out with our guides to how long (with breaks) the SAT and ACT are.

Identify knowledge & skills of PHC Nurses related health educatio Literature review

Identify knowledge & skills of PHC Nurses related health educatio - Literature review Example To describe precisely the skills, knowledge and attitudes that PHC nurses should posses with reference to healthcare education to the patients and the public. To measure the nurse’s level of scientific knowledge, required for health education at the PHC centres. The following sections presents a literature review of studies focused on different areas inside and outside Saudi Arabia. As the proposed research need to redefine the variables involved giving due attention to existing findings, these studies provide valuable information to start with, to describe precisely the skills, knowledge and attitudes that PHC nurses should posses with reference to healthcare education. Review of Literature Rasheed, and Al-Sowielem (2003) have examined the level of health awareness related to pregnancy and the sources of information among women visiting the Primary Health Centers in Al- Khobar, Saudi Arabia. This study is important to the context of this research because it has pointed to the fact that PHC nurses are poor sources of health information (p.37-38). This study has used a questionnaire to survey 581 women in child bearing age and this huge sample size lends great credibility to the findings that this study endorses. The study has explored whether information on food, rest, exercise, breast care, rubella, smoking, safe maternal age, spacing between pregnancies, and antenatal care, were available to the members of the sample and if so, what were the sources of this health information for them (Rasheed, and Al-Sowielem, 2003). The results showed that there was inadequate information given to the pregnant women from the PHC staff (Rasheed, and Al-Sowielem, 2003). Also, the authors mentioned that educational intervention during antenatal period is highly effective in improving the knowledge and health habits of pregnant women, an intervention that PHC nurses alone get the opportunity to impart with maximum effectiveness. Therefore, from this study it is necessary that nurses have knowledge on information about food, breast cancer among other factors significant for health education of pregnant women. Similarly, Al-Amoud (2003) showed from a study that there is need for PHC nurses to be equipped with knowledge or information about breast feeding so that they can assist breast feeding mothers with appropriate information during health education. The study examined the breastfeeding practice among women attending primary health centres in Riyadh that there is a clear decline of breastfeeding in Saudi Arabia. This study (Al-Amoud, 2003) has indirectly pointed to the need for improving training of PHC professionals including nurses so that they can give better education to the mothers on the importance of breastfeeding. These results of this study have been obtained through examining variables such as, number of children alive, marital status, occupation, and the level of education (Al-Amoud, 2003). Almalki, FitzGerald, and Clark (2012) in their investigation of nursing education in PHC setting have also stressed the important of the furthering nursing education in PHC setting. This is one of the main findings of the study carried out to assess the quality of work life among PHC Nurses in Jazan, south of Saudi Arabia (Almalki,

Consumer law coursework Essay Example | Topics and Well Written Essays - 1750 words

Consumer law coursework - Essay Example e time and make claims under the Sale of Goods Act based on various possible ways to resolve the issues based on the circumstances and on what they want to be done as provided for in the implied terms section 12 of Sales of Goods Act. According to the case, Bowes v Richardson & Son Ltd, the buyer was held by the Courts entitled to reject a new car seven months after delivery based on various car problems some occurring immediately after delivery and others months later. The Court held that the buyer had never had the opportunity to fully assess the repairs made on the car as so could never be held to have accepted the goods. Such case law authority is a precedent for Peter’s iTablet and Patrick’s TV cases. They both have their rights against the retailer and not the manufacturer and hence a claim is valid to make against Trusted Electricals and Aptab R Us. On the hand, Peter can make a claim on goods sold on hire purchase not through Sales of Goods Act but via the Suppl y of Goods Implied Terms Act 1973 that makes the Hire Purchase Company responsible for the quality of the goods supplied and offers him slightly different rights. Patrick is also protected under the Consumer Credit Act 1974 to decide on the best way possible to end his agreement in his cases against Barcpeds. On the first occasion, Patrick purchased a 42 inch television for his living room from Trusted Electricals. The Television was defective and also had a consequential loss as it overheated and damaged his expensive wallpaper. In order to advice Patrick, there is a need to investigate whether the sign his attention was drawn to was available at the point of purchase and that he was told about it before the acquisition. The researcher believes that Patrick was never told of this sign at the point of purchase and thus his demands are valid as required by section 13 subsection one (sale by description) where there is an implied term that the good correspond to the description. Patrick should be

Year-Round Education Research Paper Example | Topics and Well Written Essays - 1000 words

Year-Round Education - Research Paper Example It is important to know the difference between this modified calendar and traditional system to compare the benefits and drawbacks of this development. Unlike the traditional system where a multiple month vacation (mostly in summer) is given to students, year round schools offer a cumulative holidays of about 2 months distributed over the year. These year round schools can further offer single track, multi track or extended year format. When this new system was introduced in the mid 80s, a lot of controversies erupted that highlighted concerns over certain issues. In order to analyze and compare these two systems it is mandatory to dissect those issues. Traditional system had served its purpose well for a very long time. Now if it was to change it could have some positive or negative effect on the individuals associated with it, most importantly, the students and the teachers (Haser & Ilham 2005). So while comparing these two systems focus should be on observing any change in their a ttitude. For example, a student from a year round school system can be disturbed looking at the kids of his age enjoying their long summer vacations. Other factors that are important to consider are effect on academic performance, cost and changing a norm of a society. Year round Education and Academic Achievement: Various researches have been conducted around the world to compare the two education calendars. Lindsay-Brown, 2010, investigated and compared the impact of year round school calendar and traditional school calendar on the academic achievements in North Central South Carolina. In this study, 256 elementary students from four different schools, each pair following different calendars, were tested using the Palmetto Achievement Challenge Test (PACT). English language arts and mathematics were the subjects tested in the study. After all the fine adjustments were done to the obtained data, the result showed that there was no significant difference in the academic achievements when students from year round schools versus traditional schools were compared. Another review paper of 39 studies (Cooper et al 2003) also indicated a weak and insignificant effect of modified school calendar on academic achievement. Most of the think tanks that are in the favor of this modified calendar place their arguments on the basis of superior academic achievements. These results, however, is in direct contradiction to their theory. Some groups such as â€Å"Summer Matters† believe that traditional school system is best for the students and society. The argument is based on philosophy of family ties and relationships. They believe that long summer breaks allow families to come together and cherish the moments with their children. This social support catalyzes children efforts and stimulates them to perform better in the field of education. Moreover, they insist that summer vacations provide an excellent opportunity for kids to learn and discover new things. Why Year round Education Calendar? So if year round education does not help students to excel in their academics, then why this system has gained popularity over the years? Parents, faculty and administrator weigh certain other factors as well such as growing school enrollments, working parents and shrinking budget (Sheilds & Stevens, 2000). These problems are partially solved by introducing this education calendar. For example, multi-track year round schooling divides students into groups and rotates them in an organized manner. This multi tracking can increase the capacity of school by 30%. Therefore, the total number of students accommodated in 4 traditional schoo

Importance of Operations Management in Organizations

Importance of Operations Management in Organizations Managers are also responsible for critical activities such as quality management and control, capacity planning, materials management, purchasing, and scheduling. The importance of operations management has increased dramatically in recent years. Significant foreign competition, shorter product and service life-cycles, better-educated and quality-conscious consumers, and the capabilities of new technology have placed increasing pressures on the operations function to improve productivity while providing a broader array of high-quality products and services. With the globalization of markets, firms are recognizing that the operations function can be used to strengthen their position in the market place. Managers in operations management play a strategic and tactical role in satisfying customer needs and making their firms strong international competitors. The role of operations management is to transform a companys inputs into the finished goods or services. Inputs include human resources (such as workers and managers), facilities and processes (such as buildings and equipment), as well as materials, technology, and information. Outputs are the goods and services a company produces. Basically, Operations management has an impact on the five broad categories of stakeholders in any organisation. The five groups are: Customers These are the most obvious people who will be affected by any business. Suppliers Operations can have a major impact on suppliers, both on how they prosper themselves, and on how effective they are at supplying the operation. Shareholders Clearly, the better an operation is at producing goods and services, the more likely the whole business is to prosper and shareholders will be one of the major beneficiaries of this. Employees Similarly, employees will be generally better off if the company is prosperous; if only because they are more likely to be employed in the future. Society Although often having no direct economic connection with the company, individuals and groups in society at large can be impacted by the way its operations managers behave. The most obvious example is in the environmental responsibility exhibited by operations managers. Company Profile CRH plc, the international building materials group, has its headquarters in Ireland and operates in 22 countries in three closely related core businesses: Primary materials Value-added building products Specialist building materials distribution. Listed on the Irish and London Stock Exchanges and on the NASDAQ in the US, CRH consistently delivers long-term growth in total shareholder return, averaging over 18% per annum since the Group was formed in 1970. CRH maintains a rigorous focus on improving existing operations through experienced local management teams. These regional platforms and management structures generate the profits, cash flow and organisational strength to support CRHs ongoing programme of development. CRH grows by investing in new capacity, developing new products and markets and by acquiring and growing medium-sized companies. This long-term development strategy is supported by occasional larger acquisitions that extend the Groups geographic reach or product range and offer new strategic platforms for future growth. Strategic Vision CRHs strategic vision is to be an international leader in building materials, delivering superior performance and growth. Current strategic objectives and appropriate tools to analyze them Most of strategic objectives are directed toward generating greater profits and returns for the owners of the business, others are directed at customers or society at large. In the case study CRH plcs ultimate objective is to deliver superior performance and growth to its customers and stakeholders in all aspects. Any strategic objectives generally measured by the following tools; Measurable. There must be at least one indicator (or yardstick) that measures progress against fulfilling the objective. Specific. This provides a clear message as to what needs to be accomplished. Appropriate. It must be consistent with the vision and mission of the organization. Realistic. It must be an achievable target given the organizations capabilities and opportunities in the environment. In essence, it must be challenging but doable. Timely, there needs to be a time frame for accomplishing the objective. After all, as the economist John Maynard Keynes once said, In the long run, we are all dead! When objectives satisfy the above criteria, there are many benefits for the organization. First, they help to channel employees throughout the organization toward common goals. This helps to concentrate and conserve valuable resources in the organization and to work collectively in a timelier manner. Second, challenging objectives can help to motivate and inspire employees throughout the organization to higher levels of commitment and effort. A great deal of research has supported the notion that individuals work harder when they are striving toward specific goals instead of being asked simply to do their best. Third, there is always the potential for different parts of an organization to pursue their own goals rather than overall company goals. Although well intentioned, these may work at cross purposes to the organization as a whole. Meaningful objectives thus help to resolve conflicts when they arise. Finally, proper objectives provide a yardstick for rewards and incentives. Not only will they lead to higher levels of motivation by employees but also they will help to ensure a greater sense of equity or fairness when regards are allocated. There are, of course, still other objectives that are even more specific. These are often referred to as short-term objectives-essential components of action plans that are critical in implementing a firms chosen strategy. Operation objectives of the Company and its success in meeting strategic objectives Key components of the strategy to achieve the set objectives are; Clearly understand the current and potential future requirements and expectations of our customers-work closely with our customers, suppliers and partners to achieve quality objectives Deliver services of market-leading quality, reliability and consistency that meet our customers requirements Implement quality management in a systematic and planned way through the application of management systems that support the delivery of the business plan Educate and train our people and partners, to support the delivery of high quality work Establish and measure performance and customer satisfaction against appropriate quality objectives and/or targets Measure service performance and customer satisfaction at an appropriate level Continually review and improve our processes and levels of service CRHs one of the objectives is to remain the employer of choice for all employees and to exceed the expectations of all our stakeholders. This implementation can be done; CRH believes that continued business success is rooted in good employee, customer and supplier relations. This is particularly true in a decentralised organisation, where management responsibility is delegated as far as possible to the local level. Company Managing Directors/Presidents are responsible for the implementation of CRH employment policies, guidelines and objectives in their areas of responsibility. They are supported in this role and in reporting at Group level by their Human Resources (HR) teams. Human Resource has a functional reporting line through Product Group and Divisional HR Directors to the Group Human Resources Director. Data is provided below on the geographic employee footprint of the Group emphasising the increasingly global reach of CRH. Shortly after CRHs foundation in 1970 the Board set a clear strategy for the development of the Group which, while it has evolved over the years, is still broadly applicable today. CRHs development strategy is based on the following: Stick to core businesses in building materials Invest at home; be the low cost market leader Develop overseas; create platforms for future growth Negotiate deals that meet the sellers and CRHs needs Devolved development teams reporting to regional and product group managers Rigorous approach to evaluation, approval and review Generally mid-sized deals augmented from time to time with some larger transactions Objective is to maintain and develop a balanced portfolio across regions, products and construction sectors Focus on performance and growth The resources, systems and tools used in the organization to support its Business Process. CRH has a three-part strategic objective for fostering new growth across its operations. Invest in new capacity Develop new products and markets Acquire and grow mid-sized companies Investment is central to growth. CRH is making four fundamental types of investments that will make continued growth possible: Invest in its employees Upgrade production facilities Improve efficiency Manage performance Invest in people The success of CRH is very much due to having talented, committed, enthusiastic and well-qualified people throughout the Group. They encourage and support the continuous professional development of the CRH team and its members. What attracts people to CRH? A competitive pay package, the opportunity to travel, a good working environment, the team philosophy, flat organisation structure, challenging work assignments and internal training programmes to prepare the next generation of leaders. Upgrade production facilities CRH re-invests capital in their existing facilities to improve energy and operational efficiency to meet future demand growth. In other words, a plant producing 500 tonnes of cement a day could easily meet local demand , but years later, the demand could skyrocket due to a building boom. If the plant does not upgrade to increase its capacity, then competitors will. Like all other technologies, methods of production can become obsolete. It takes substantial capital to re-tool an entire factory with newer, better machines, but regular upgrading is necessary to maintain and improve competitiveness. Improve efficiency One way to get more out of existing factories is to make sure they are being used to the maximum. A low capacity utilisation results in higher fixed costs per unit, which means lower profitability. Low capacity utilisation can be a result of over-supply in the market or seasonal fluctuations of demand. In Portugal, for example, the economy is going through a difficult period with construction down approximately 3.9% for 2007, reflecting reduced activity in housing and a significant reduction in public capital expenditure. However, all three of CRHs Portugese cement plants operated at full capacity by taking advantage of strong export markets. Investment in efficiency and environmental improvement programmes, to offset higher input costs and improve performance, continued at all three locations. Manage performance A strong focus on achievement against targets is part of CRHs objective of performance and growth. The ability of key players to deliver is important. CRH has implemented a strong performance management system and appraisal process. The key elements include: Planning Clear expectations and goals are set and so plans develop to achieve these. Jobs, and how they relate to the strategic objectives of CRH, are looked at. These plans set out key steps and measures for staff. The A-SMART criteria are used, i.e. Aligned, Specific, Measurable, Action-oriented, Realistic and Time-bound. Coaching Observing and documenting performance, conducting reviews, as well as identifying training and development needs all provide feedback and support, and ultimately promote better performance achievement and growth. Having a mentor or coach can help staff to learn and develop, and reinforces effective and active communication and performance. Reviewing Getting results is a crucial factor of CRHs high-performance culture. What the individual achieves as well as How, are assessed and reviewed. Self-assessment, collection of information, appraisal and a review meeting all drive performance improvement. Employees have an opportunity to respond to feedback. Regular formal reviews of management development strategy are conducted by each Division with the guidance and support of the Group Human Resources Department Developing new products and markets CRH has activities in 28 countries but there is still plenty of room for expansion within those markets, and in neighbouring regions. The Groups wide spread across countries, regions and construction sectors helps to smooth the effects of industry and economic cycles. That wide spread of activities creates opportunities for further growth. Each of the Groups diverse operations across three continents is seen as a platform on which to build. CRH tailors its strategy to suit each country it operates from. An integral part of CRHs development is its investment in four fundamental areas: people, market leadership, the environment and technology. Investment in people consists of training and development to provide all employees with a platform for progress, a best practice programme to guarantee an efficient, safe and healthy place to work, and a market-based remuneration policy to attract, retain and motivate the right people. While investing in acquisitions and development projects is important to attain market leadership, being the leading producer with the lowest costs is also critical. This is achieved by investing in those existing businesses which offer a strong foundation for sustained and profitable organic growth while driving continuous improvement in products, processes and strong regional brands. Environmental investments programmes help us to improve optimise our use of energy and resources, and to be good neighbours in the communities in which we operate. Environmental investment includes projects to reduce dust and noise, minimise effluent and waste, improve energy efficiency, increase the use of recycled materials, and to restore worked-out facilities through extensive tree and shrub planting. Investment in technology enables us to run more efficient plants; to create more effective processes; to develop innovative products; to offer better and more focused service to customers; and to measure and communicate international best practice throughout the Group. CRH continues to invest in a wide range of projects which contribute to overall profitability, drive continuous improvement of products and processes to deliver long-term performance and strongly underpin the future development of the Group. Quality audit and review systems Evans Parker (2008) describe auditing as one of the most powerful safety monitoring techniques and an effective way to avoid complacency and highlight slowly deteriorating conditions, especially when the auditing focuses not just on compliance but effectiveness Quality audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team. It is an important part of organizations quality management system and is a key element in the ISO quality system standard, ISO 9001. Quality audits are typically performed at predefined time intervals and ensure that the institution has clearly-defined internal quality monitoring procedures linked to effective action. This can help determine if the organization complies with the defined quality system processes and can involve procedural or results-based assessment criteria. With the upgrade of the ISO9001 series of standards from the 1994 to 2008 series, the focus of the audits has shifted from purely procedural adherence towards measurement of the actual effectiveness of the Quality Management System (QMS) and the results that have been achieved through the implementation of a QMS. Audits are an essential management tool to be used for verifying objective evidence of processes, to assess how successfully processes have been implemented, for judging the effectiveness of achieving any defined target levels, to provide evidence concerning reduction and elimination of problem areas. For the benefit of the organisation, quality auditing should not only report non-conformances and corrective actions, but also highlight areas of good practice. In this way other departments may share information and amend their working practices as a result, also contributing to continual improvement. Quality culture What is Culture? Basically, organizational culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artefacts) of organization members and their behaviours. Members of an organization soon come to sense the particular culture of an organization. Culture is one of those terms that are difficult to express distinctly, but everyone knows it when they sense it. For example, the culture of a large, for-profit corporation is quite different than that of a hospital which is quite different that of a university. CRH Corporate Culture Local autonomy Experienced operational management is given a high degree of individual autonomy and responsibility to accommodate national and cultural needs and to leverage local market knowledge, all in accordance with key centrally defined governance, financial and CSR operating requirements Global yet local There is strong management commitment to both the local company and to the CRH Group, supported by best practice teams that share experience and know-how across products and regions. This dual citizenship motivates local entrepreneurship, while maintaining and benefiting from Group synergies. Our management philosophy could be described as global yet local. Mix of skills CRHs market-driven approach attracts, retains and motivates exceptional management including internally developed operational managers, highly qualified business professionals and owner-entrepreneurs who join on acquisition. This provides a healthy mix and depth of skills with many managers having experience of previous economic cycles. Our succession planning focuses on sharing this wealth of experience with the next generation of CRH management Perpetuating CRH culture As the Group grows, CRH make considerable efforts to ensure that the unique CRH culture is propagated into the new acquisitions, while simultaneously preserving their identity, so that the Group culture thrives from generation to generation. These efforts include training programmes, seminars, newsletters, the CSR Report and many other activities that span country, regional, international, cultural and language boundaries. These are of increasing importance as the company now grow into developing regions. Monitor systems and work activities of CRH Plc and identify the major problems affecting the systems. Also identify the opportunities your company can avail to improve business process Managing operations CRHs success as a global business depends, on its ability to face fast-changing economic conditions. CRH is a decentralised Group with many subsidiary companies operating under a wide range of local and regional brand /trade names. CRHs strategy is to build leadership positions in regional and local markets. This is done by delegating authority to the local managers. So that decisions can be made promptly by those most familiar with local economic conditions, while central support from CRH Group ensures that sustainable growth is gained in line with the Groups strategic goals. Central functions consist of the Board that sets the strategic direction for the Group, and Human Resources, Finance and IT which support the implementation of day-to-day management policy. Finally, CRHs vision can be identified as to focus globally yet manage locally. During a recession, it is important for businesses to look for new ways to maximise performance. One method is to improve efficiency across operations. Another way is to reinvest capital through the use of retained earnings/revenue reserves in its existing facilities. This helps to improve energy and operational efficiency while matching capacity to meet current and future demand. Managing suppliers Individual operating companies generate raw materials in the region in which they operate. Most of these suppliers are based in Europe or North America. Deteriorating demand in these markets needs strict expenditure controls. Managements current aim is on sourcing quality supplies to gain cost reductions and to increase efficiency. Central sourcing functions have been setup in key markets to take advantage of economies of scale and reduce the cost of purchased goods. Managing finances Recession strategies The recent banking crisis made more difficult for companies to obtain finance. Maintaining the business with liquidity and adequate cash flow is very important. However, current market conditions have made it more expensive to get financing for operations, therefore the costs of running a business is expensive and non profitable. Like other companies, CRH is focusing on maximising cash flow from operations and reducing working capital. Budgeting Cost savings Year 2008 indicates major changes in the financial, economic and business climate worldwide. Declining markets led to wide ranging cutbacks across CRHs businesses in the world. The company showed its rate of acquisition and its capital expenditure to improve liquidity and take advantage of possible further reductions in the price of assets. CRH management has also implemented other energy and cost reduction to limit the decrease in profit margins Division-wide procurement strategies and purchasing Company targets at purchasing amterials at lower cost and supply its productions in economies of scale to get the operational efficiency in its operations. Operational Excellence procedures have helped to reduce both labour and equipment costs while eliminating and minimising the waste. Reductions in fixed overhead staffing and other fixed costs have been implemented to maintain a strong balance sheet position. Raising Capital Sources of finance -CRH management undertook a successful rights issue. This allowed existing ordinary shareholders to buy more shares as a way of re-investing back into the business. The funds rose used for further acquisitions challenging industry players. In 2009, despite the very challenging trading backdrop, CRH is operating a healthy cash flow. The Group continues to identify new measures to deal with the evolving trading conditions. CRH believes that its current cash flows, together with the recent rights issue and funds raised through its borrowing facilities, are more than sufficient to meet its expenditure requirements for the foreseeable future. Financial reporting It is essential that IT systems give prompt, consistent and reliable financial reporting from the local operating units to the central Group management. Accurate financial reporting is paramount importance for management especially during difficult economic circumstances. Decisions on budgeting, raising capital and sourcing of finance all rely on accurate financial reporting. Managing people CRH employs 80,000 people in over 3,700 locations, including 35 countries. This staffs is managed through four Divisions. Company is introducing a web-based global talent management system replacing a paper-based system. There is a unique culture of performance and achievement throughout the CRH Group ensuring that, CRH has the capacity to deliver performance excellence despite of critical economic conditions The CRH management team are highly experienced and the development of talented successors is a priority for all managers. Regular formal reviews of management development strategy is done by each relevant Division with guidance and support provided by the Group Human Resources Department. CRH managers come from three very different streams, comprising: Internally developed operating managers who have room to grow in an expanding organisation Highly qualified finance and development professionals business builders with vision and future potential Owner-entrepreneurs who have joined with their companies and provide a vibrant entrepreneurial spirit. This brings forth a healthy mix and depth of skills and a wealth of experience at senior level with many senior leaders having managed through previous economic cycles. This gives them invaluable experience to deal with the current downturn enabling them to prepare for the inevitable upturn of the market. Performance management In CRHs high performance culture particularly during difficult economic times achieving results is difficult. But, CRH has adopted a strong performance management and appraisal process. Employees are given realistic goals and plans in place to achieve them. Performance is driven by appraisal, regular review meetings and self-assessment. Leadership development Management Development Programmes gives leadership training usually to middle or top level managers to assist them in upgrading their skills. These programmes have been updated in response to the changing economic climate. Staffs are encouraged to identify opportunities for business development and increased efficiency. Internal promotion is used to motivate and reward staff. Succession planning CRH places a significant consideration on succession planning. So as to develop future generations of leaders from within the organisation and maintain quality employees at all levels. Staffs are prepared for future roles by involving them with challenging assignments, coaching and formal training. Employees are educated the fact that during difficult economic times they must work within tighter financial constraints to keep operations within budget. CRH Future and Recommendation The process of maintaining superior performance and growth involves continuously investing for the future. The overall picture in 2009 is extremely challenging, having the severe impact of ongoing turmoil in financial markets across the world. There are a number of positives factors which will provide future opportunities for business, for example, Lower energy costs, Interest rate reductions Infrastructure stimulus packages in a number of countries, notably the USA. In this environment, efforts will mainly focus on implementing cost-cutting measures, reducing expenditure and preparing the business for recovery in construction markets. Regional and product diversity cater for smooth outcome of the effects of changing economic conditions and to provide multiple opportunities for growth. Management has responded vigorously to extremely challenging market conditions. All aspects of business need to be analysed and cost reduction and cash generation measures need to be in place to deal with whatever trading circumstances may evolve as the time go on.