The Sustainability Strategy Challenges Facing Organizations Business Essay

Arguably, sustainability is said to be the greatest challenge to the present and future management practices. Dimensions of economic, social and environmental raise the question of meeting present needs without compromise to future generations’ ability in meeting their needs. For this reason, global environment presently challenge tackling require Non Governmental Organizations, corporate, private, individual, public, non-profit organizations and government sector commitment. Such sectors need to address issues such as environmental efficiency, seizing advantages of developments of renewable energy, satisfying green consumers and business sustainability among others. Every sector need to prioritize in network of global sustainability across multiple practices (Galea, 2004). Similarly, working with industrial associations and policy landscape intense understanding would be significant. Comprehensive models assist consumers establish strategies and appropriate practices which enable competitive advantages, thereby making business sustainability vital. In addition, the models assist modern managers to device strategies and policies for the environment to facilitate major changes.

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However, in a bid to achieve sustainability, business communities encounter major challenges. For example, according to findings there are challenges that may be observed on business world, and therefore academic experts or modern managers should find common grounds for competitive reasons (Blcakburn, 2007). Organizations seem to be realizing that issues of sustainability are complex. Therefore, varied perspectives are required in production of innovative solutions. To begin with, one of the major challenges of sustainability is in assigning and measuring value of ecological impacts of a firm. This nvolves eceological footprint where the question is raised on whether carbon footprint is final.
Despite firm’s restless efforts, industrial operations have been observed to have a continued discharge and generation of enormous wastes. Pollution of the natural environment has therefore been inevitable. Such pollution has caused damages to households or other enterprises. For example, in an attempt to ensure sustainability in healthcare organizations the UK government is responsibly operating the state’s healthcare system. Such operations enable the population to enjoy the benefits related to publically financed Healthcare. U.S government on the other hand provides majority of the privately funded programs. In provision of healthcare for everyone, different countries are now investing in sustainable healthcare because of the current impacts related to change in climate within our environment. Conventional drug use such as herbal drugs would facilitate clean and safe environment. With such, disposals of chemicals related to unavoidable wastages of drug substances via approaches such as burning could be lowered.
Consequently, systems of accounting do not ascribe such costs with their sources and neither is the record kept systematically. With an up-ward trend, companies and organizations are being compelled to internalize such environmental costs via stricter environmental regulations and procedures or via damages liability suffered by others. Accurate company’s measurement of the true environmental related costs has been offering a huge range of benefits. Correct measurement helps the management to track performance relative to past performance. Similarly, such measurements can offer external investors benchmark who are concerned with performance of the environment by firms plus their finances. In addition, the measurements can evaluate the firm’s exposure to the environment and financial risk originating from environmental performance. However, despite such measurement benefits, tools to adequately measure the cost are not available (Galea, 2004). For example, Trucost Ltd, a London research firm has created databases fro estimating the externality costs for global largest corporations. Firm’s emissions or wastes are measured with the use of individual information sources and each emission is given a monetary value through multiplication of its physical quantities by a speculated price. Nevertheless, results from such measurements are usually estimates hence actual measurements are never acquired.
Secondly, firms have been facing the challenge of building a sustainability corporate culture which is enduring. Questions are raised in this challenge on what next for the company after key sustainability leaders quit the company. Challenge is on where the firm should begin with such an occurrence. Normally, sustainability initiatives are always associated or linked to few key individuals within a firm, particularly those on leadership potions. When these individuals leave the company, the initiative of sustainability may begin to atrophy. Nevertheless, those firms whose culture of sustainability is strong, the initiatives of sustainability endure for long. Companies experience a challenge in maintaining such a culture and there is need therefore for the firm to consider several aspects. Firm’s or company’s structure need to learn something from safety movement which will act partly as the core culture of majority of manufacturing and extractive firms. Companies must also evaluate the differences between its sustainability and that of other organizational cultures. Similarly, its necessary to establish which practical tools and devices can be applied to embed culture like incentive systems or organizational designs.
Thirdly, firms are being challenged to promote and ensure supply chains sustainability. Argument here may involve whether suppliers from less developed countries should be treated differently from those in developed nations. For example, acting as intermediaries between tourism service providers and tourists, tour operators incorporate varieties of services which are tourism related. Such corporations forms full holiday packages which are then marketed to clients via travel agents or directly. Generally, every package consists of accommodation and food provision, transport or even events and activities such as social activities or excursions. Since most of the products or services within the package are provided via supply chains of companies which are subcontracted, agents or organizations or tour operators are not in direct control at all times of the social or environmental effects of such goods. However, consumers always expect firms to always avail quality, environmental friendly and social sustainable products. Firms are therefore responsible fro ensuring all inputs going into their products are sustained. For effective implementation of sustainability policies, tour operators offering products that are contracted should operate closely with suppliers. Sustainability performance will therefore be achieved all through the holiday package lifecycle. Establishment of such supply chains have been challenging for firms since it requires them to establish coherent company policies with management system in accompaniment. Management systems should however set clear actions and targets for economic, social or environmental performance. Particularly, such challenges arises where management systems are not based on the existing internal processes to maintain implementation costs at lower levels plus promoting integration of all firm’s operations.
Similarly, incorporating employee incentives into sustainability has posed a challenge to companies operations. Firms will always wonder whether existing incentive plans for employees would possibly be connected to goals of sustainability. Normally, only strong practices within organizations prevail. If organizational practices contradict its policies, there is a possibility of green washing. For this reason, firms therefore need to invoke structures and systems that ensure firm’s practice sustainability. Mangers of sustainability must know the employee incentive plan that can result in company’s implementation of the organizational policy sustainability. Challenges faced by firms relate to ways of incorporating targets of sustainability into staff incentives (Blcakburn, 2007). Similarly, they are also challenged in knowledge of what extent context influence applicability or effectiveness of a particular approach towards incorporating the staff incentives to sustainability. Also, limitation comes in establishing what ways can an existing staff incentive plan be connected to the company’s policy of sustainability.
Another challenge faced by firms involves identity of business risks which are associated with water shortage and quality. For example, poverty, climate change, malnutrition and water scarcity have posed the biggest challenges to Unilever. However, to address such issues, the company has improvised ways of reducing water use both to the company and their consumers. Similarly, the company has produced an overview of sustainable development in 2008. The publication explores the most material issues of the company such as nutrition, sustainable agricultural sourcing, hygiene and climate change among others. In the overview, an explanation has been offered on the ways of integrating sustainability to Unilever’s business or brands. Through such integration, improved health, hygiene and nutrition is reached.
Companies may be limited in acquisition of tools or devices in risks evaluation incase of a climate change. According to report released by Global Equity Research group , investors and companies have been swift in identifying opportunities in water-related technologies or business. However, they are slow in identifying the increasing business risks associated with water supply pressures. Firms are limited in knowledge of their firm’s risks in relation to water and their chain of supply. Similarly, companies have been constrained in acquisition of water conservation or supply contingency plans. Due to this challenge, San Fransisco in California held a 2-day conference which widely featured on risk assessment, water conservation and water recycling. Similarly, Deloitte & Touché principal in presentation described anticipated water shortage in the future posed serious threats to businesses. Such threats were to face firms that have not developed water supply or conservation contingency plans in the future. Overall consensus revealed that business enterprises particularly those within water intensive industries headed for an increased risk level from supply of water issues globally. Consequently, managers who fail to plan water related risks will ultimately be compelled to address the issues through supply disruptions, diminished quality and increased costs (Blcakburn, 2007). Primarily, business experience challenges or water risks in physical form through disruption or supply reduction. In addition, the limitation is in form of regulatory where firms do not have ability to obtain discharge or use permits. Reputation is also affected due to public perception of the firm’s use of freshwater or wastewater creation. Industries such as mining, energy food or beverages have more water intensity than others. They are therefore exposed to more water related risks.
Another challenge facing the business operations in sustainability is identity of aboriginal perspective on sustainability of business. At the same time determination of the best approaches for engaging aboriginal communities constructively. Aboriginal groups maybe closely tied more to sustainable life ways, the question raised is whether they can offer any teaching to corporations. Aboriginal individuals act as an integral part of the organization. Normally, they form distinctive constituencies which assist in creation and improvement of public perception of firm’s performance. Long-term good quality and secure supply of raw materials that are competitively priced has been the biggest challenge in organizations and its fundamental in a firms operation. Most company’s decisions are based highly on aboriginal individual’s needs and perspectives inclusive of resources and public lands. Aboriginal communities provide suppliers, employees, customers or contractors.
On the other hand, aboriginal businesses involve a growing business sector with high ability to avail services and goods for the firm’s operations. Firms are usually limited in providing sound, strategic sense of business in support of aboriginal people involvement. In Canada for example, they have assisted in economic growth and encouraged a proactive work in building mutually beneficial relationships in business with the aboriginal individuals. Many firms have had very positive aboriginal groups’ interactions and the parties experience symbiotic benefits. However, other business operations under similar regions have experienced negative interactions. Nevertheless, it’s not clear over what approaches offer the most competitive edge. When firms build more robust understanding of sustainability based on aboriginal perspective, developer and aboriginal community relationship create mutual respect and trust hence positive engagement. Similarly, understanding of this perspective sustainability informs business operations or communities on new sustainability approaches and stakeholder engagement. Such approaches are both within and outside aboriginal communities. In this perspective, questions raised relate to what are the best or worst practices in working with aboriginal communities. Similarly, the perspective seeks to know whether the best practices differentiate by aboriginal group or by sectors and if so, how that happens (Galea, 2004).
Lastly, firms experience challenges in measurement of economic impact of NIMBY. Firms are always limited in knowing whether NIMBY claims are justifiable or whether they are valid. Compny’s seek to know whether economic values can be assigned claims of NIMBY. NIMBY groups can impede substantially on the progress of a company’ projects. Although companies maybe aware of the risks linked to NIMBY-ism, challenges exist since it has not been proved whether the claims of NMBY are justified. Questions arise on whether NIMBY-ism can generate any economic value and how evaluations would be made. Similarly, firms seek to know correlation between NIMBY activism and economic impacts that are subsequent, whether positive or negative.
In conclusion, we have evaluated the effectiveness of business sustainability and how the seven challenges have impacted on the implementation of such sustainability. Firms need to devise proper ways of tackling such challenges in ensuring proper flow of business operations. Challenges have been revealed to be continued discharge and generation of enormous wastes, incorporating employee incentives into sustainability and ability to sustain corporate culture which is enduring. Similarly, other challenges include promotion and ensuring supply chains sustainability, identity of business risks associated with water shortage and quality. Identity of aboriginal perspective on business sustainability and measurement of eceonomic impact of NIMBY have also been associated with challenges facing sustainability.
 

Challenges Facing Financial Management in Schools

Abstract- With the development of Internet information technology, public financial management reform deepening, accounting focus Universities facing the management accounting change, the financial sector as a core sector universities, data centers will become a big school and participate in school management, decision-making, analysis and forecasting. We analyzed the development of university management accounting brings opportunities and challenges, and puts forward some countermeasures. The arrival of the era of big data, data important asset cause rapid Internet Insurance sector is concerned. This paper describes the development of the insurance status of the Internet, combined with the opportunities and challenges facing the era of big data Internet Insurance is proposed under the era of big data Internet Insurance Development Strategy in order to provide reference for the healthy and rapid development of the Internet insurance. For the “Internet +”, Big Data applications in other industries to produce value-added effect polymerization, and the lack of coal mine large data mining the potential value of the use of problems in the research of coal mine production safety monitoring enterprise warning, large-scale mining and material handling equipment safety standard remote control of the whole life cycle, coal mining enterprises at all levels of production safety data sharing cloud services platform, cross-dimensional aspects of supply and demand and price forecasting perspective platform for big data application mode analysis, data mining by large technical team unified programming model and set standards in the interface protocol, security co-ordination and so do the pre-proposals. He pointed out that “Internet +”, the comprehensive application of big data will become an important means and ways to improve mine safety and production, to achieve lower costs, increase efficiency role.

Key words – big data; the Internet era; data mining; financial stocks management; decision analysis
Internet insurance refers to an insurance company or a third-party insurance net new Internet and e-commerce technology as a tool to support the insurance sales management activities. With the advent of the era of big data, data has become an important factor of production in each industry, people use mobile Internet, cloud computing and other information technology, data mining, processing and analysis, making it a more competitive asset. Insurance is a typical data-production industries, these technologies continue to penetrate to the insurance industry, will enable Internet Advanced Insurance from simple sales model to the Internet Insurance directions. How to seize the Internet Insurance in rapid changes in information technology opportunities, meet challenges, it is an important topic of current research.
“Internet +” 2.0 is an innovative evolution of information technology to promote the development of new social forms, new formats, the future of the entire industry, cross-platform management operations. “Internet +” Action Plan states that “Internet +” represents a new economic form, that is to give full play to optimize and integrate the role of the Internet in the allocation of production factors, the depth of the innovations of the Internet merged in all areas of economic and social promotion innovation and productivity, “Internet +”, the action plan focus on promoting the development of big data integration, cloud computing as the representative of information technology. Large data by conventional sensor means, video tools, software, captures the data set.
Big Data has penetrated into every industry and field has become an important factor of production, and mining companies for the use of huge amounts of data, cloud computing is the second, after another big things disruptive technology revolution. I believe that the need to re-integrate coal mining enterprises, mining past long-term accumulation of vast amounts of data, the application of integrated analysis tools from multi-dimensional space-time insight and knowledge discovery in large data implied by law, to guide the production of coal mine safety decision, the fine will increase to coal mine production safety the new level of management.
Development of the Internet makes big data accounting information processing more efficient, faster, more standardized accounting, real-time and focus. Data is an important basis for decision-making to further tap the Internet data becomes possible. Some college financial workers and researchers are trying to study the theory based on the “Internet +” a new model of financial management, financial officers will be freed from the complex basic accounting business, so that key positions financial officers transferred to the school management and decision-making thus in decision making, management accounting functions.
Internet Insurance more than ten years, with the low cost of the Internet, by many, wide coverage, high-impact characteristics, has made remarkable achievements, but also in the development of some problems.
With the rapid development of e-commerce and computer technology, the Internet Insurance from 2011 into the development of speed and 2011 to 2013, the domestic insurance business Internet companies rose from 28 to 60, average annual growth of 46%; premium volume grew from 3.2 billion yuan to 29.1 billion yuan, an increase of three years to reach 810 percent overall, with an average annual growth rate of 202%; the number of insured customers increased from 816 million to 5437 million, an increase of 566%. Thus the fast pace of development of the Internet of insurance and in addition, according to the report, the Internet insurance products in a simple, standardized, low-value products, mainly in the field of property insurance on motor vehicle insurance, family property insurance and other insurance, some insurance companies also introduced credit insurance and liability insurance. In the field of life insurance, accident insurance is the main insurance. This is due to the insurance product itself professionalism, complexity and technical characteristics of the Internet are currently determined.
Internet insurance innovation, embodied by precise customer targeting, segmentation subject matter of insurance and risk factors, dynamic customization of insurance products and pricing. Although the insurance major insurance companies committed to the Internet innovation, but its degree of innovation still to be improved and first, the business model, most of the insurance firms will simply move to the line of products from online sales, Internet and insurance achieve genuine integration of very few. In addition, from the sale of the product, although the “full moon insurance” “haze insurance” Insurance bold new alternative, but its essence is just common accident insurance and other traditional insurance, some even with gambling elements, departing from the essence of insurance. And similar to the net purchase return shipping insurance, micro-channel payment security insurance and other insurance and real participation poly emerging e-commerce wind. Risk insurance products provide protection for Internet and rare.
A. Challenges and Opportunities
In the Internet, big data and the depth of penetration of insurance background, January 15, 2014, China Insurance Information Technology Management Co., Ltd. as China’s insurance industry’s first big data company formally established, which is to follow the development of insurance in the era of big data will by road. Build big data platform, opportunities and challenges for the development of the Internet insurance.
Big data brings cost-efficient development. In the era of big data, the use of information technology to collect data related to the insurance business management, may establish a standardized, systematic Internet insurance data system, on the one hand, the insurance customer orientation statistics and pricing of insurance products and other aspects of the easier, more traditional insurance, greatly reducing the time and cost of data collection, improve the efficiency of insurance. On the other hand, the insurance business automation has improved continuously. Use relevant data to establish a network of intelligent Underwriting platform, promote the application of intelligent terminals and other mobile Internet devices, the Internet can enhance the insurance business process automation and automation of PCT operator, so that each flow risks are controlled at the same time, various aspects of the processing time was significantly shorter improved efficiency.
Big Data mining helps timely customer needs, innovative products. The use of advanced technology for historical data collection, collation, analysis and processing, can effectively tap the demand for risk management, product innovation, investment, and improve decision-making ability can play an important role. In the era of big data, by the client in the Internet browsing and transaction platform, leaving traces of statistical data, we found that customer propensity to buy, tap the customer needs, and then use this data to design new products. For example, “Zhong An online” positioning to service the Internet, the main liability insurance and guarantee insurance, it is on the Internet risk data statistics and effective use of the Internet user needs mining, while the net purchase return shipping insurance, micro-channel payment security risks also in big data era has brought proof of product innovation.
Big data helps improve the precision pricing and marketing capabilities. First, the Internet and big data will change the traditional insurance products pricing rules and on the one hand, from an actuarial point of view, the traditional products, based on the law of large numbers actuaries, according to a random principle, in the long term, a large number of business practice to extract part of the data to construct a mathematical model to calculate the premium rate, and further to make products pricing. In the era of big data, we are able to collect comprehensive data, complete data and integrated data, mining the relationship behind the data, greatly improve product precision pricing power. On the other hand, the era of big data, some products can achieve dynamic pricing, according to customer requirements to develop products and provide services.
Big Data Acceleration Insurance Internet channels to “format” Conversion. Internet insurance “format” refers to the development of insurance products, insurance consulting, insurance plan design, sales to post-service claims and other aspects are all relying on the Internet to complete. Internet as the pure insurance sales channels have developed more than ten years, under the big data era, the Internet will change the insurance of insurance simple Internet-based sales model to the real Internet insurance “format” development. Through the Internet data mining and analysis, the insurance truly serve the Internet, the development of Internet-based products, so the Internet to “format” Conversion.
B. Risk exposure
Potential new industry entrants increase competition. In the era of big data, the data will show a “complete and accurate, open and transparent sharing of resources” feature, if the data and insurance technology, will probably be more new entrants, competition, market volatility increased. First, Internet companies have huge amounts of data once you have risk identification and control technology, we can set up an Internet insurance company through its proven platform and a wide audience. Second, already has a certain risk control ability of enterprises to large data Once you have a mature technology, mastered valid data, then build their own risk management system is more cost effective than buying a simple insurance products, such as UPS courier company can set up the Internet insurance companies to reduce the cost of risk management.
Information security problems with the advent of the era of big data, we are faced with data privacy and public safety contradictions. Data sharing is public and big data trend of the times, but the data is disclosed along with the controversy from the legal, ethical, moral and other aspects, which restricts the development of the Internet insurance. Big data disclosure is a double edged sword, on the one hand the data disclosed not only provides network operators rely on the insurance risks of the Internet more convenient and accurate data sources, and promote the development of the Internet insurance will also create value throughout society; the other and the data disclosure might cause disclosure of user privacy, violation of human rights, this is a problem we develop Internet safety cannot be ignored in the era of big data.
Second, insurance information system within the Internet and many of the system outside the company for selling payment transactions and other business data exchange exists, there are attacks from Internet hackers, viruses, system rejects all possible risk services.
Computer technical capacity needs to be improved while at present, the data acquisition and processing capability at a low level. First, because of the limited technical capacity data, the accuracy of the information collected, the lack of timeliness of security, it is difficult to be objective data analysis and data utilization value. Present new data, a large number of customer information is untrue, other unstructured data availability is not high, the lack of effective data collection technology; the same time, the accumulated data to be tapped, marketing, customer data can be small, the data processing capability Room for improvement. Second, the lack of data resources and insurance companies a lot of historical data in the system long-term idle, underutilized the insurance company’s own strengths and data sharing and exchange of related industries, lack of data sharing.
Industry regulatory system is not perfect. Currently, the Internet insurance supervision, lack of complete system and China Insurance Regulatory Commission and other relevant departments of the Internet there are many loopholes in the supervision of insurance policies.
C. Development Strategy
To the healthy development of the Internet insurance for the current Big Data era has brought about the Internet insurance business model and will continue to arise in the future cross-industry business internet insurance issues, identify and improve Internet access for insurance, so that has a mature risk management experience, superb information technology, adequate solvency, improve the supporting facilities and strong product development capabilities of enterprises to run higher risks than traditional channels of Internet insurance. In addition, the Internet insurance sales staff and customer service staffs should have professional knowledge of insurance, insurance agents obtain qualification certificates, and publicity to consumers in order to supervise the sales site.
Great use of advances in technology and the accumulation of data mining and to expand the scope of insurable risks, make insurance products more diverse, more abundant form. Unstructured data analysis of consumer behavior and other aspects of the Internet, understanding of customer stickiness strong platform for the Internet, such as micro-letters and other social platforms, the real Internet insurance services on the Internet, the development of new insurance products; in other areas, according to Internet features and customer purchasing power, the development of products easily accepted, as one yuan universal insurance. In addition, the insurance customers seeking to seize the Internet features of convenience, high-quality services, to provide services to facilitate easy operation, especially after the purchase of part of a single delivery, return visits, claims, loss prevention and other processes to improve the customer experience.
On the one hand, handle public relations and data security of personal information. On the basis of does not infringe on the security of personal information is disclosed to the social development of favorable data, and effective use of public data in other industries, the development of the Internet insurance open ideas. On the other hand, China Insurance Regulatory Commission and other relevant departments to the Internet as soon as possible insurance information security management practices, insurance information on Internet security issues to make clear from the system specification.
Information technology capabilities for the development of the Internet insurance are essential. First, to increase technological development capability and for the insurance professionals, complex features, the development of professional services, Internet insurance software, such as the development and customer support interactive voice platform, customer service or sales staff can explain to customers insurance policy via voice, and record chats with voice and reduce misleading sales and post disputes. Second, improve data collection, processing capability. In the Internet field of insurance, data acquisition and processing are essential. First, we should improve data collection technology to ensure the validity and accuracy of the data from the source; secondly to improve the processing capability of the data within the integration of external data, especially external data; and finally to be able to explore the value of the data behind the increase of insurance effective analysis systems company a lot of historical data, and convert it into a business model, implemented.
D. Training of personnel
Big Data era will be the era of competition for talent, data analysts, data engineers and data scientists, will be the future of the insurance company’s core resources. Development of Internet insurance, the insurance data should vigorously develop dual talent based big data era, develop their powers of observation, so that they can in time to capture unstructured data in a particular social phenomenon behind and tapped to ensure the timeliness of the data. In addition, to improve the relevant human imagination, it is possible to use processing techniques revitalize these data, the data structure and logic integrated into new business models, to create new business opportunities.
E. Assessment methods Single
Use translation of the article as a way of course examination, it is difficult to stimulate students’ interest in learning, negative coping curriculum tasks. I conducted a survey found that students planning translation job 35% of the students use the basic copy translation results obtained translation tools, 45 percent of students slightly modified and adjusted on the basis of translation tools, only 20% of the students can take the initiative full article translation. Through courses only a very small part of the student’s level of translation of foreign documents has been improved, examination results difficult to truly reflect the students’ English and theoretical level, the course does not highlight the advanced nature and practical, it is difficult to learn and practice.
With the advent of the era of big data, government performance evaluation requires not only financial indicators, but also need more funding and performance-related non-financial indicators. Whether it is from the College for Financial performance evaluation or self-assessment of performance for the school sector, we need to collect and aggregate data more business. By aggregating data for each business unit, collation, college financial participation in school management greatly increased participation in management, decision making, analysis, forecasting and other functions more important.
Management accounting is an important part of the accounting work. Executive Management accounting needs to have a sound economic and institutional environment. American people more engaged in financial accounting management positions in decision-making. However, the current promotion of management accounting application is not widespread, management accounting, decision-making functions is weak, especially in universities and other administrative institutions, the management is to consider some of the more administrative factors and social factors. Since a long period, China’s colleges and universities accounting practitioners and theorists that consider the conventional financial balance legal compliance, internal control, external audit and other more, and the study of the internal service management decisions is not enough, environmental management accounting the foundation is weak, lagging behind the development.
Colleges whether to apply management accounting, with the external environment, the school management and the financial officer of understanding and attention of the relevant management accounting since the concept of management accounting managers at all levels are thinner, management accounting application is not mandatory, some universities on the functional orientation of the financial sector lower, in the substantive work of the financial management function is not very high, and college financial sector dislocation in the “big logistics” framework, resulting in oversight functions in decision-making is weak. So, not only difficult to play to the functions of management accounting, and even affect the effectiveness of internal control implementation. Due to lack of understanding of management accounting, colleges and universities to consider internal cost accounting, budget performance management, strategic issues such as the budget is relatively small, to a certain extent, affected the development of university career.
New management accounting personnel should be familiar with the characteristics of the industry units, with a strategic mind, broad thinking, keen insight, sound judgment, good at seizing opportunities, from a strategic perspective of the overall development process to understand the problem as Chinese enterprises gradually enter the international market, Chinese accounting industry to accelerate the process of international development, huge domestic management accounting talent gap. China currently accounting personnel, “the number is more than enough quality,” especially serious lack of “sophisticated” high-end accounting personnel with the college finance ranks, there are also uneven quality of personnel, the problem of shortage of talent, capable of high-quality accounting management of comprehensive ability of talent rarely.
The use of large data, clean-up and confidentiality of data is critical. Internal and external data, financial data and non-financial data, stored in various formats, and includes a number of errors and duplicate records. Current financial data disclosed Universities have a financial budget and final accounts, Excellencies funding, the use of research funding, government procurement, bidding, etc; non-financial data on each school site have all kinds of education, teaching information. With these data, we can analyze the problem a lot of data behind it. So, faced with the arrival of the era of big data and confidential data that made public in the extent and scope, will become an important issue.
A. Management Strategies
With demand management accounting concept of the in-depth and practical work, the financial sector participation in the management, functions and responsibilities of participation in decision-making will be strengthened. College management to fully understand the “Internet +” Time and accounting management mode, and the mode of thinking of great change data processing mode, and ready to make adjustments in terms of organizational structure, management functions, post setting accounting and accounting functions of positioning, so that management accounting functions into full play, so that the financial sector enterprises participate more effectively in decision analysis, internal control. Universities accountants will be more extensively involved in school activities, the more into the budget, planning, execution and analysis to go and play an increasing role in management decisions. Financial departments should pay more attention to clean-up and confidentiality of data, and improve the level of Internet information security.
B. Establishing Responsibility center
Responsibility center is organized around the overall management objectives, have some management authority within the organization and assume certain economic responsibility. Target Responsibility Center is coordinated with the overall objectives of the organization, if each responsibility center can be completed given responsibility goals, the overall responsibility for the organization’s goals can be realized. In the center of the implementation of the responsibility proper authorization is necessary, the higher should be given permission to work subordinates; proper authorization to create a performance of the work, the authorization could not reasonably responsibility center is not conducive to mobilizing the enthusiasm of all staff. Colleges and universities can set according to the type of business teaching a different responsibility centers, for the first three years of revenue and expenditure for statistical analysis, combined with the school development goals and the revenue and expenditure plans, revenue and expenditure targets set for each responsibility center business, and to develop a set of appropriate incentive mechanism, so that the balance of payments accounting and financial management is more refined, promote school development.
C. The introduction of strategic thinking, implementation of management accounting
As colleges and universities system reform, the introduction of strategic management accounting thinking in college financial management that is necessary. The implementation of strategic management accounting, and more attention to the management and evaluation of performance, can help senior management in university
More layers of long-term decision-making and forward-looking. Balanced Scorecard in the financial management of the university, SWOT matrix analysis, strategic analysis Boston matrix analysis, from a strategic perspective to analyze the development of the school, has a positive effect. Run management accounting strategy based on the need to accelerate information technology, human, financial, material and information integration in a unified information platform to manage accounting concepts and technical methods, based on a full range of comprehensive management information.
Strategic leave the budget cannot be achieved, the budget is a strategic tool for landing. Western countries proved that performance budgeting is a way to increase efficiency, improve efficiency, optimize resource management budget, is one of the many methods of management accounting applications and the whole process of budget performance management, including reporting, tracking the performance of operational performance objectives, with the performance evaluation, and other aspects of the results of the application. Will promote the concept of the performance management in place, into the performance management methods and techniques in the management of all aspects of the budget, you can promote the reform of university management system and mechanism, sense of responsibility to improve the sector, it is conducive to further enhance the university budget of scientific and meticulous management. Budget performance management only became the “number one” project to do. Budget performance management indicators issued in the case of the layers of the task requires school leaders at all levels perform their responsibilities, mutual coordination among departments.
D. Design of Performance Evaluation System
In the performance management process, including the design of a multi-dimensional evaluation system of financial and non-financial is particularly important. Financial indicators are usually budget implementation rate, earmarks financial performance, asset-liability ratio, liquidity ratio, the ratio of personnel expenses, public expenditure ratio, total asset growth, etc; non-financial performance evaluation include before school, student management, staff management, research management, books, curriculum, facilities, equipment, and energy consumption. School profiles of school functions, campuses, school property cases; school student management situation, scores, enrollment, attendance, dropout rates, graduation rates; faculty circumstances seniority, position, title; there are research papers published data management capacity , project reporting and pass rates; book data have library books, e-books number of books; there are courses course data gate count, course credits, teaching time, curriculum resources (including courseware, video, etc.); and other classrooms and laboratories have to use data use records, borrowing records, maintenance records, recording idle; equipment use and maintenance of equipment condition data have data, use and maintenance records, the log management behavior; school energy consumption data, water, electricity, gas and other energy consumption data.
Conclusion
In summary, the “Internet +” coming of age of the development of information technology, to promote the management accounting in college application and promotion. College accountant will be more extensively involved in school activities, the more into the budget, planning, execution and analysis to go and play an increasingly important role in management decisions and how to manage the accounting and financial accounting organic combination that is the focus of the government, universities, social, financial managers and workers of common concern.
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5. Ab Halim, Mohd Suberi Bin, Mohd Zukime Bin Mat Junoh, and Syahida Binti Kamil. “Financial performance and the management issues of Bumiputera construction firms in the Malaysian construction industry.” Journal of Scientific Research & Reports 3.9 (2014): 1190-1202.

The Challenges Facing Cultural Diversity

These days cultural diversity plays a significant role in a company. The criteria discriminating these groups include race, geographic basis, civilization, gender, age, functional or educational background, physical and cognitive competence, language, lifestyles, beliefs, cultural background, economic category, occupancy with the organization and sexual preference.
As a MNC works in a global market it must be ready to detect all possible changes in the global environment and it has to be able to communicate and adapt the identity of the company to them. For example in India women’s will not work for night so they have to manage time for their convenience.
The company can’t offer quality products or services to the customers if it doesn’t understand and take in account the impact that the culture has in all the processes. Workers usually think that their behavior hasn’t got any influence on the final product or service, but to be effective, every part must have a clear vision of the company and a clear mission on it.
The social, political and enterprise structure depends on everyone in the company, so the internal area and the human resources, one of the most important areas of a company, must be developed with the rest of the company to achieve their goals.
The misunderstanding and ignoring of different cultures, language and historical background lead to disasters in the field of setting up multinational business. To avoid this, a general knowledge of another nation’s culture and history is essential. So general cultural knowledge, if coupled with prejudice and prejudgment, is an obstacle to effective global management.
2.1 Communication and language barriers
One main challenge under culture is language barriers. Communication is necessary for management. Yet communication relies upon a common language, a condition that does not exist in many global business situations and that is when the problems start. The most pronounced sign of the language barrier at work can be found in the relationship between a multinational parent company and its network of global subsidiaries.
Several factors contribute to the difficulty of achieving and sustaining effective communications and a productive, collaborative relationship. Even if an employee is relatively competent in the language of the other party, loss of rhetorical skills is always present as the use of humor, symbolism, sensitivity, negotiation, persuasion and motivation requires a very high level of fluency.
2.2 Attitudes towards Appointments and Deadlines
In America, Americans were give strict obedience to time commitments and it was a basic principle of professionalism and polite behavior. Because everything tends to be strictly scheduled, postponements in one appointment or deadline can have a serious ripple effect on a coworker or customer’s other work commitments.
But for example: The more flexible and open-ended approach to time of Indian and Sri Lankan businesses culture can create tensions and adverse impressions on American counterparts
3. MNC Workforce Diversity
Multinational Companies (MNC) had to face a number of new challenges in their daily business over the past couple of years. Globalization changed various things for global players. In general MNC structure shows a focus on their main resources and departments like finance, technology, marketing, sales and production, because they want to have a large number of customers and to earn profit.
A huge challenge MNC have to manage is their workforce diversity. The milestone research by Hofstede with 116,000 recruits of IBM, a giant MNC in 50 countries and 3 regions recognized four cultural values in the workplace: Individualism-collectivism, Power difference, Uncertainty avoidance and masculinity-femininity.
For example: the United States was the greatest and Guatemala was lowest in individualism. Malaysia was the highest and Austria was the lowest in the power distance values. Greece was the highest and Singapore was the lowest in the uncertainty avoidance values. Japan was the highest and Sweden was the lowest in the masculinity values. There have been significant amount of intercultural and cross-cultural studies with these cultural values, and some studies demonstrated the relationship between communication styles with some of these values.
Because of this diversity one of the key success factors of MNC is the recruitment and selection of human resources who offer valuable uniqueness. These individuals are forming the values and beliefs of a business.
There are two key challenges within global HRM specifically building global corporate cultures and developing global leaders that have to be mastered in order to manage diversity and be successful in the global business surroundings.
Managing diversity in MNC during HRM
To manage workforce diversity in MNC it’s a challenge for the human resource management to set up a global corporate culture. To recognize with the corporate culture of the company is the most significant thing for the workforce. That is why building a global corporate culture is one of the most important challenges for Multinational Companies.
Employee behavior is possibly the most critical challenge that multinational organizations have to deal with. In Multinational Companies there is a huge potential of conflicts, because of its diverse personalities. As a result of this anxieties will arise among employees.
Individuals try to adapt their behaviors to fit the demands of a particular environment. In order to adapt to the environment, individuals sacrifice their individualities to fit in with their new cooperatives. Individuals become incorporated into the culture of an organization when they are successfully understood into the workplace.
Successful cultural adaptation reduces members’ anxiety, role conflict, and intentions to leave. Additionally, successful adaptation increases organizational obligation, job satisfaction, confidence, and job familiarity as well as successful acculturation and establishment of relationship.
4. Challenges of Working across Culture
4.1Stereotyping
They are usually misrepresentations and inaccuracies fixed in false guesses and faulty analysis. Usually this valuation is seen in a negative perspective. The challenges to organizations are to acknowledge differences in positive terms.
Power struggles and can be the result of stereotyping in organizations. For example, placing women, who stereotypically have had lower status than men in society; in senior management positions create status incongruence in the minds of many of the people. This can root complexities in the leader/subordinate relationship and can root power differences in a business. This is done in such a way that affiliates of minority groups may find it hard to use influence over decision processes in the organization.
4.2 Ethnocentrism
Ethnocentrism results when managers identify the differences in cultures – but have a propensity to think that their culture and their way of doing things is the right way, their way of doing things is the only way and the best way. Any difference from their culture or from their way of doing things is seen as “distortion” or as a “mistake” or as “Wrong way”.
Most people have the propensity to pursue ethnocentrism. Americans, Japanese, Chinese,
Germans, French, Scandinavians, and Russians are more prone to ethnocentrism than other cultures – when compared to other Asians, Latin Americans, British, Australians, Africans and Indians.
4.3Informal Integration
Informal groups play a significant role in any business. They influence both the success of the business and the career success of individuals. Total quality plans depend heavily on employee contribution and informal networks can greatly impact this process. Informal groups are influenced by factors such as common language, perceived social similarity, and ethnocentrism. These collective networks are critical for communication in organizations. It has been found that race has a major effect on collective networking. This is not astonishing as you would expect people to have a preference for interaction with members of one’s own culture group, especially in an informal context.
4.4 Parochial Attitude
Parochial attitude refers to a person’s incapability to see cultural diversity. This is exactly the reverse of ethnocentrism. Managers who are sent overseas frequently meet people who are also dressed in suits and speak their language – this prompts them to disregard all other cultural differences and make them feel that all others are “just like us”. In today’s business globe, most people are apt to dress similarly – in suits or other formulas and talk in English, but this does not indicate that all people have the same culture – but people often only see the surface and think that the other person shares the same cultural values.
Managers from US/UK often tend to display a strong parochial attitude – mainly because the people with whom they relate on regular basis can speak English and are dressed similarly in suits or western dresses.
 

Current Challenges Facing Primary Producers Within the Agri-food Sector

The future of agriculture in Northern Ireland is very uncertain and unpredictable.

In Northern Ireland about 75 per cent or around 1 million hectares of Northern Ireland’s countryside is farmed in one way or another. And is for the most part focused on livestock production, with around 2.7 million sheep and 1.7 million cattle grazing on grassland which accounts for 78% of the agricultural land available. Of the total farmed area, 54% consists of improved grassland, 36% is unimproved and semi-natural and just 5.5% is tilled for arable production. Although the horticultural industry (mainly made up of apples and mushrooms) covers a small area of land, it is financially very valuable to the economy, especially in County Armagh. The industry is vital for the NI economy, employing over 3.5 per cent of the total workforce. This figure over and above the UK average of 1.2 per cent. 

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Geography and topography are major factors that determine the amount of food that can be grown or the number of animals, that can be reared for human consumption. This also has an influence on crop cultivation because different crops prefer different soils.  In some regions like the Ards Peninsula, a lot of Root and Leafy Green Vegetables are grown, because the soil type and climate are favourable and thus, leads to higher yields. In contrast, regions like the Mourne Mountains with their Granite Peaks and bogy valleys are not suitable for the growing of arable crops. This region is more suitable for hill farming where sheep are reared, as there can thrive on the poor pasture of the mountains. The breeds that are selected must be able to live off the hill all year-round while being able to product quality lambs for the food chain. The breeds of sheep selected to be farmed in the Mournes include Scottish Blackface which can be usual found grazing the higher peaks. Whereas on the lower slopes breeds such as Cheviot are more commonly found. Hill farming also benefits the Mournes themselves, because as the sheep graze, they aid towards the maintenance of the ecological balance and distinctive landscape of mountains.

Northern Ireland’s farmers are getting older, which will pose a major problem for the future of the industry. The median age of Northern Ireland farmers (58 years), according to a survey by DARD in 2010. The survey just 4% of Northern Ireland farmers were aged under 35 in 2013 which was drop from the 5% of farmers under 35 in 2010.The survey also highlighted that the ages of farmers differed for each business size; on very small farms, 36% were aged 65 or more, compared with 25% on small and 20% on medium or large farms. This poses a big problem to the future of agriculture in Northern Ireland because older farmers are less likely to invest in their farms and adopt new technology than the younger generation would. For, Northern Ireland to be able to produce locally produced, high-quality food, then younger people need to select a career in farming. We need to support farmers to become more productive, and therefore more viable. It’s very unjust and unsustainable to expect farmers to earn less than what they invest back into their farms.

The varying climate is yet another factor that affects the future of agriculture in Northern Ireland. The climate in Northern Ireland is warm and damp. The province has a significant rainfall. The reason for that is that Northern Ireland is situated in the centre of the Gulf Stream, this brings warming water from Mexico to Northern Ireland. Therefore, snow in Northern Ireland is quite rare and the temperature usually so mild. This means that lush grass is grown easily. Therefore, a lot of the region’s agricultural land is made up of Grassland Pasture. However, Northern Ireland like the rest of the world is starting to feel the effects of Global Warming and changes to the Northern Irish Climate. This could be a positive for the industry, the warmer and drier summers could allow for more arable crops and fruits to be grown. Yet other crops could have lower yields over reaching maturity more rapidly. It likewise would mean a reduction in the time for housing of livestock such cattle in the winter. At present, most cattle need to be housed and fed on forage crops e.g. silage as well as animal concentrates. This is due to the lack of grass Growth in the Winter months and increased rainfall.

Nonetheless, climate change also poses many problems to Agriculture in Northern Ireland. The higher temperatures in Summer will result in Heat stress in livestock, especially in dairy cows and this may reduce milk production. In upland areas such as the Mourne Mountains, intense rainfall could result in greater soil erosion. Warmer temperatures in summer and lower rainfall may lead to a in loss of carbon from the soil, particularly in peatland soils, with consequences for soil structure and fertility. The risk of river flooding across the province is expected to rise in the future, affecting crop and pasture production on land near to rivers. Finally, in areas near the coast, the rising sea levels will result in a loss of land and flooding will become more frequent, which will mean that farming in these areas can no longer continue .

Brexit is a major factor that will affect the future of agriculture in Northern Ireland over the coming decades. Firstly, Agriculture in Northern Ireland when compared to rest of the UK, remains a significant industry. Agriculture accounts for 1% of Northern Ireland’s Gross Value Added (GVA), which is higher than the UK figure of 0.6%. Local farm incomes are massively dependent on direct income support in the form of the EU’s Basic Payment Scheme, which is the essential fundamental of the EU’s Common Agricultural Policy (CAP). Without these payments, many farms simply could not remain viable and continue to operate in the future. A significant reduction in the number of farmers in Northern Ireland and could also have a wider impact on the rural economy generally. Throughout the Brexit negotiations, Agriculture seems to be away down the list. It is uncertainties whether the UK Government will continue to offer direct support to farmers in the future.

 Another implication of Brexit is the protection of local food. Currently in Northern Ireland ,Armagh Bramley apples, Lough Neagh eels and Comber early potatoes are protected. These food products are special because of their specific relationship with a particular area and their uniquely distinctive features. This protective status promotes the products across EU countries, and this can be a major benefit in increasing sales. However, post Brexit will this protective status continue? Another major implication of Brexit is the membership of the Single Market that currently allows for trade to function across the border with the Republic. An example of how important membership of the Single Market is the effect it will have on the Dairy Industry. In 2015, 594’000’000 litres of milk were imported into the Republic of Ireland for processing by creameries, with the bulk of the supply coming from Northern Ireland. This imported milk accounts for just over 25% of Northern Ireland’s annual milk supply in 2015. Thus, any alteration to the current single market arrangements could have a huge blow on the movement of agricultural products across the Island. It has been also suggested by the Ulster Farmers Union’s beef and sheep chairman Sam Chesney that Brexit could have a devastating impact on the Sheep sector in Northern Ireland. If there were to be a no-deal Brexit, then the introduction of high-priced tariffs may price local lamb producers out of the French market. This would be a problem for the sheep sector in the province, since the main export market is France, which more than 50% of NI Lamb exports end up.

Energy usage will be a challenge for agriculture in the future. Farms will have to become more have to become more efficient when it comes to the use of renewable energies. One way in which farms utilize a more environmentally friendly of Powering their enterprise is to install an Anerobic Digestor. The process of Anaerobic digestion is a natural process in which bacteria in an oxygen-free environment decompose organic matter such, resulting in a biogas and a sludge. The biogas can be burnt to power electricity generators, provide heat and the sludge can be spread onto the land as fertiliser to improve soil structure. This method is great as Farmers can but their waste to use, which will help to reduce the pollution of waterways. Another benefit from the installation of an anerobic digestor is the surplus electricity that is generated can be sold back to the national grid. On a recent educational visit to Gilfresh Produce in Loughgall Co. Armagh my class was shown the company’s newly installed system. Gilfresh Produce digestor uses 120 tonnes per week of waste vegetables being used to generate enough energy to power the factory. All excess energy will be sold back to the grid. In the future anerobic digestors may become more accessible to smaller farmers across the province, which would help to reduce pollution of the countryside, as this much method less not as likely to bring about environmental pollution when compared to spreading untreated organic waste on land by means of a Dung Spreader or Slurry Tanker. Another benefit of the fertilizer that is generated from the digestor is that its effects are better for soil nutrition and will enhance it for a longer period than untreated farmyard manure or Slurry.

At present, from midnight of the October 15th to midnight of the 31st of January a Ban is imposed on farmers from spreading any organic manure besides from farmyard manure and dirty water to any land. This can pose several problems to farmers, for instance because they are not allowed to spread slurry onto their land, they may need to rent extra housing or use extra straw bedding. Straw bedding has taken a sharp rise in price over the last few years due to unsuitable conditions, this means it would add an extra cost to the already expensive costs of housing livestock. However, Slurry is not as beneficial to soil nutrient as Farmyard Manure. A leading agricultural advisor Bryan Nicolson states “that muck is worth £9.20/t and a cubic metre of slurry has a value of £3.20 in NPK alone. These products have real financial value for the farm – but only if they are stored and used correctly.” (Agriland 2017) Therefore in the future, farmers should be advised to reduce the amount of chemical fertiliser and slurry they use to increase soil fertility and Nutrional content.

Ammonia presents another challenge to agriculture in Northern Ireland. Ammonia is an air pollutant, that is mainly sourced from common agriculture practices, for example the storage and spreading of slurry, farm yard manure and fertiliser or livestock housing. Ammonia is known to damage plant biodiversity, like moorland and bogs that are home to an array of rare plants and animals, it is also known to effect human health. The Northern Ireland environment agency have designed a block to any further development of Agriculture at farm level based on modelling of ammonia which they say is affecting our special habitats. Planning cannot be granted for any expansion or replacement of existing farm buildings sheds under these rules with their desired outcome to deintensification farming in general across Northern Ireland. As a result of their actions numerous farm businesses would become unsustainable and therefore would no longer be a feasible business venture and thus the number of farms would shrink. Therefore, it is a lot scientific research that would need to be carried out on the actual ammonia levels rather than the computer modelling that the agency is currently implementing. This would give reassurance to farmers that they could their livelihoods wouldn’t not be affected by the environment agency’s aims. Genetically modified crops in the future will pose many challenges to Agriculture in Northern Ireland. “Genetic modification (GM) is the use of modern biotechnology techniques to change the genes of an organism” (agric.wa.gov.au/2018). These Crops could help farmers here to have more predictable Crop yields, which would allow them to be reassured that they will to be able grow enough produce to sell from year to year. Another advantage of GM Crops over traditional crops is that they require less herbicides and insecticides, which will eventually make the soil unusable. This allows the soil to gain back its nutrient base over time. As a result of the genetic resistance within the plants, the farmer will still be able to succeed in getting a predictable yield at the same time as maintain the soil nutrient base. Nonetheless, there are several disadvantages that GM Crops present to Farmers. Firstly, if you choose to grow these crops you will have a greater liability. This is since these plants develop seeds, they have the potential to pollinate with non-GM Crops. This would mean that the non-GM Crops may have their plant structures modified, thus meaning that their neighbour’s crop could be altered. Another reason which GM Crops present a problem to Farmers in the province, is that the EU has currently bans the Cultivation of them. In 2017, most EU nations voted against genetically modified crops from being cultivated. Yet they didn’t ban these crops being imported for animal feed.   

The final challenge facing Primary Producers in Northern Ireland is the eradication of TB (Bovine Tuberculosis) which is a respiratory disease that effects mainly cattle. TB eradication is crucial in this province because Northern Ireland has one of the densest populations of cattle in the UK. Cattle farming (both Beef and Dairy) is the main commodity sector in NI. This means that the spread of TB throughout herds across the province will have a negative effect on the majority of farms. At the moment all programme is not resulting in a reduction in disease levels. Therefore, farmers are unclear whether testing cattle for TB is working at all. Another factor that is debatable about the spread of TB is the culling of badgers, as it was discover in 1971 that a badger killed in Gloucestershire, which was a hot-spot for TB, was found to be carrying the disease. This has since prompted the debate whether Badgers should be culled, as they don’t contribute to the food supply chain and threaten the livelihoods of farmers.

References

Department of Agriculture, Environment and Rural Affairs (2017). Northern Ireland Agricultural Census for 2017. Department of Agriculture, Environment and Rural Affairs: Belfast. [Accessed 29/10/18].

www.rspb.org.uk [online]. (2017). Available from: . [Accessed 10/10/18].

anaerobic-digestion.com [online]. (2018). Available from: . [Accessed 20/11/18].

www.rspb.org.uk [online]. (2018). Available from: https://www.rspb.org.uk/about-the-rspb/at-home-and-abroad/northern-ireland/farminginnorthernireland/#MWAI5mULkAPz9mjo.99>. [Accessed 1/11/18].

 

The problems facing itc

Report Purpose
This report has been compiled by the Director of Human Resources at the request of the Board of Directors. Following on from the recent study of the organisation by external consultants, a number of problem areas have been identified in relation to HR practices, policies and implementation. It is the purpose of this report to analyse the findings of the study compiled by the consultants and recommend the courses of action necessary to address the problems identified

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The Problems Facing ITC
The organisation is currently comprised of four separate functions: administration, production, retail, and customer service. These functions are spread over a number of sites with administration and production sharing a single site, retail function operating from several locations, and customer service spread across three call centres. The problems which are facing the organisation vary depending on the function and location.
The administration function of head office and the production function of the factory are both based on the same geographical site. Although the functions are working in close proximity to each other they are very different in terms of working conditions, practices, and pay systems. These differences are creating tensions across the departments and leading to a “them and us” culture. Some of the differences identified include; bonus scheme in the factory but not the head office, poorer working conditions in the factory compared to head office, lack of subsidised canteen for factory staff which is available to administrative staff. Some problems are common to both functions such as lack of promotion opportunities for internal candidates and poor general perception of staff abilities by managers. As well as these, the factory also suffers from a blame culture apparently fostered by poor product quality.
The retail outlets have a separate set of problems. There is potentially a discrimination problem in the recruitment and selection processes employed for managerial staff. There are currently no female managers of retail outlets and there has been at least one complaint of discrimination referred to a trade union by an unsuccessful female candidate for promotion. This complaint has received the backing of a number of the individual’s colleagues.
The call centres are very highly pressured, time-oriented environments in which to work. There are significant pressures to deal with customer enquiries quickly and to sell as many new packages as possible. Pressure is exerted by supervisors whose salaries are dependent on the abilities of the centre staff to generate income through sales.
Across the organisation there is a general feeling that staff are underpaid in relation to competitors and not valued as an asset of the organisation. There is an increasing trend towards trade union membership which is probably a sign of growing disaffection within the workforce as a whole. There are also a growing number of customer complaints, mainly directed at retail and customer service staff as they are the customer-facing part of the organisation. These complaints are generally centred on lack of knowledge of products on the part of retail staff and poor customer service from the call centre staff.
As detailed there are a multitude of different problems facing ITC with the lack of consistency of treatment of staff across the organisation and poor communication of organisational values being major contributing factors. The morale of the workforce is low and there is a lack of loyalty to the organisation demonstrated by high levels of staff turnover. It is not purely a matter of low salaries as it has been recognised that staff leave the company to work for other organisations for little in the way of additional reward. The managerial and supervisory staff also appear to be unable and/or unwilling to tackle the problems which leaves the staff with no alternative but to seek advice and assistance from the trade unions. The consultants reported that there is no inherent problem with the quality of the core workforce but that the managerial staff are not sufficiently competent to be able to recognise and build on the attributes of the workforce. This combination of factors and problems could potentially all be explained within the concept of employee engagement. The main thrust of this report will, therefore, concentrate on the implementation of an employee engagement programme as an initial means of addressing the issues currently facing ITC. Other means of tackling the identified problems over the longer term will also be discussed and recommendations made.
Employee Engagement
The CIPD (2009) define engagement as –
“…creating opportunities for employees to connect with their colleagues, managers and wider organisation. It is also about creating an environment where employees are motivated to want to connect with their work and really care about doing a good job.”
Why is employee engagement relevant to ITC? Almost all examples quoted in the consultant findings demonstrate an out-and-out lack of employee engagement; moreover, the opposite appears to be the case. At this point, it is important to note that a global survey by BlessingWhite Intelligence (2008) on the state of employee engagement found that that “Indian workers are among the most focused and satisfied in the world”. In the Asia-Pacific groupings, full engagement for Indian employees reaches 34% in comparison to the lowest of only 10% for China. Moreover, over 65% of respondents said ‘yes’ when asked if, assuming they had the choice, they would hope to remain within their organisation in 2008. From this, the apparent lack of employee engagement and retention issues apparent within ITC would appear to point to something we are doing wrong as a company.
The first question should be: Why is employee engagement important? Links between employee attitudes, employee management and business performance have been repeatedly demonstrated in CIPD (Nov 2009) research, and the Aberdeen Group (2009) reported only this year that 82% of ‘Best-in-Class’ organisations attributed employee engagement initiatives directly to transformations in revenue and / or profitability.
Employee engagement spills into the concept of the ‘psychological contract’. The ‘psychological contract’ is a popular framework within which aspects of the employee relationship can be studied (Bratton & Gold, 2007; 14). Guest and Conway (2002) define it as “the perceptions of the two parties, employee and employer, of what their mutual obligations are towards each other”. These obligations tend to differ from individual-to- individual and are often imprecise / unspoken and inferred “from actions or from what has happened in the past, as well as from statements made by the employer”(CIPD Nov 2009). This contract forms the basis for ’employer brand’ (CIPD Jan 2009); positive brand can of course help promote recruitment and improve staff retention levels. For the latter reasons, ITC should pay close heed to this contract. After all, taking account of the emotional needs of the employee ought to be a consideration when we consider they are the only resource within our organization that can simply “walk out”, taking their skills and possible opinions of negative employer brand with them.
Customer service issues
With regards to the consultant reports of customer service issues, several studies have found that employee engagement is an important variable on this front. The CIPD (2009; 2) reported that Visa Europe figures show that employee engagement levels ran parallel with an increase in customer satisfaction. Likewise, it seems intuitive that an increase in customer satisfaction would henceforth lead to an increase in financial performance. In a recent study within the customer service industry by Chi and Gursoy (2009), empirical support for this link was indeed presented. On the engagement level, while they found employee satisfaction did not appear to impact on financial performance directly, they did find an indirect relationship between the latter, with customer satisfaction acting as the mediator. Storey, on the other hand refers to engagement as EIP (employee involvement and participation) and stated that it is
“…thought to contribute to improved levels of worker satisfaction and commitment and, subsequently, organisational performance.”
From this it would appear that engaged and satisfied employees are a requirement for customer satisfaction, with customer satisfaction being the strongest indicator in financial performance. It would also appear, however, that all three variables are required to be woven into the same fabric for overall business success. For ITC, without employee engagement / satisfaction, there will little customer satisfaction, and without customer satisfaction there will be no success. The obvious lack of ITC employee engagement at this moment in time is a worrying factor with regards this tripartite equation. Therefore, the obvious question should be how do we tackle employee disengagement, how do we go about driving employee engagement?
Employee engagement drivers
According to the CIPD (Nov 2009), there is no absolute list definitive of engagement ‘drivers’. Their research has shown, however, the key employee engagement drivers are:
§ Opportunities to feed employee views upwards
§ Feeling well-informed about what is happening in the organisation
§ The employee believing that their manager is committed to the organisation
Most writers agree that one of the most important factors at play with regards employee engagement is reciprocal communication between management and the requirement to keep all employees well informed, etc. As you might imagine, these factors are also very much involved in the psychological contract; it is also suggested that, in a crisis, “mutually recognised expectations are best shaped by honest communication and solid information” (Dietz 2009). At this moment in ITC history, we might be described as being on the verge of crisis point.
Intranet 2.0
A technology that appears oddly lacking in ITC since its inception is Corporate Intranet. All of the key engagement drivers suggested above can to some extent be addressed with the implementation of an Intranet solution. This of course would not solve all of our problems, but it would at least supplement any other measures we ultimately put into place. This Intranet should not be of the antiquated variety (known as Web 1.0), that is, typified by static pages, existing with the sole purpose of providing information. We should be embracing all that Web 2.0 tools have to offer (i.e. highly dynamic / interactive internal social networking tools, instant messaging, wikis, blogs, discussion forums, and RSS feed technologies, etc.). Intranet 2.0 is still very much in its infancy, so the ability to introduce a rich networking environment is very much in line with core business strategies of innovation and creativity. We also have a largely young workforce, and Web 2.0 technology tools are something the younger generation have grown accustomed to, and this acquaintance can be employed to our advantage in the recruitment field.
When it comes to the employees’ call to connect with managers, the desire to believe in their commitment, and having the opportunity to have views fed upwards, the sharing medium of Intranet 2.0 is ideally suited to help facilitate these key engagement drivers. Web 2.0 tools flatten company hierarchy by providing a transparent path of communication between employees at all levels, from the Company Director down to the shop floor worker. It can provide staff across geographical location, irrespective of position or intellect, the opportunity to ‘float’ ideas on new product ranges, best practices, working procedures, etc. via live suggestion boxes. These ideas can appear in real time and will open to further comments / suggestions by all staff. Intranet 2.0 can also provide a channel for feedback on organisational news announcements, strategies, etc. This type of feedback can help “…managers to gain insight into the needs and motivations of employees” (BlessingWhite Inc. 2008). Indeed, employee attitude surveys can be a regular feature of the system, the results of which can used to measure employee engagement and gauge feeling amongst the workforce, all of which can help ITC identify areas to focus improvement towards.
The contribution such an Intranet can make as a training and development tool cannot be underplayed. It can provide the workforce with the most up-to-date product information, tutorials, and marketing material, etc. This information does not have to appear in the way it did pre-Web 2.0, where static pages were displayed across the organisation, meaning each employee would be required to wade through pages in order to arrive at the relevant ‘nugget’ of information. Intranet 2.0 provides levels of personalisation to the point of providing “each employee with news updates focused on their job role” (Nielsen, J. 2009). This would be of particular benefit when it comes to areas such as the customer complaints we have been receiving from the call centre regarding staff not being “up-to-date” on products. For example, this type of system has the capability to consistently display individual staff with the most “up-to-date” products details and Q & A scripts, etc.
As this Intranet 2.0 proposition is based on helping the flow of communication across the entire organisation, then logically, we would require all staff to have appropriate access to such a system. Head Office, call centre and retail staff are likely to have ready access to PC, laptop, mobile phone technologies in order to do this. In the factory, however, such access is very likely limited. To get around this, deployment of PCs / touch-screens at specific locations throughout the factory is recommended; perhaps inviting factory floor staff to use the system during lunch breaks, etc. Following the suggestion that we allow all employees across the site access the canteen, situating access in this area would also make sense.
Web 2.0 technologies and business performance
Beyond the obvious communication-flow benefits of Web 2.0 technologies, recent findings by the Aberdeen Group also provide positive figures for their business performance benefits. Saba (2009) reported that they found that 52 % of organisations who employed social networking tools, blogs, and wikis achieved ‘Best-in-Class’ compared to only 5% for those who did employ them. They also provided figures for Web 2.0 tools in relation to employee engagement. They found an 18% average year-on-year increase in employee engagement for organisations employing Web 2.0 technologies in comparison to a mere 1% for those who did not
Options for Change
Short-term
An employee engagement programme and corporate communications strategy should both be developed as a matter of urgency to stem the tide of disaffection and high levels of turnover within our workforce. This will undoubtedly require a certain level of upfront investment but will, I believe, begin to pay dividends at a very early stage. Part of this investment may have to include outlay for extra personnel and equipment to implement these solutions as we currently do not have the specialist staff available in-house to fully utilise the technology required for this communications systems implementation, nor the staff to adequately implement an employee engagement programme.
Long-term
An organisation-wide job evaluation scheme is required as a means of rationalising the pay scales of the separate functions into one transparent system. The use of bonus payments to boost the wages of certain sections of the workforce should be reviewed and possibly abolished. Exact costs of this proposal are difficult to predict until the completion of the job evaluation exercise, but it may well be a cost-neutral option with increases to basic salary costs being offset by reduction in bonuses. Any subsequent increase in the overall salary costs which may arise would hopefully be countered by increased productivity.
A scheme which would encourage secondments between departments should be developed. This would allow staff to gain a better understanding of the operations of the other functions within the organisation. This scheme could also be of benefit in assisting to identify personnel with potential for promotion or who could perform better in a different role.
The hierarchy in the factory requires a radical overhaul with a view to rationalising the management structure. The ratio of managers to supervisors is far higher than the ratio of supervisors to production workers. The potential savings gained from this approach could be used to increase the salary of the supervisors in return for taking on greater responsibility for operations in their sector. This would create a more prestigious role for the first line supervisor and a more strategic one for the remaining managers.
A process is required which will recognise the potential leaders and managers of the future from within the existing workforce. Learning and development for staff should be a core principle of the organisation. Staff with the potential to move on to other roles within the organisation should be identified, encouraged and developed in order to achieve this.
There is also a need to introduce learning and development opportunities for staff who do not necessarily wish to move on to other roles. Members of staff may be satisfied with the role they are performing but it is still necessary to ensure that there are opportunities for personal growth and satisfaction within that role.
The emphasis on speed in dealing with customer enquiries within the call centres should be replaced by an ethos of efficiency in dealing with those enquiries. This would be a more cost-effective approach as an enquiry dealt with efficiently initially is less likely to generate future similar enquiries from the same customer and reduce complaints of poor service.
Conclusion
Being an “Employer of Choice” is not simply about offering the best salary. The whole package must be seen as appealing in order to attract and retain the correct calibre of staff who share the vision of the organisation and who want to actively contribute to its success. It has been stated (CIPD, 2009) that:
“Engaged employees are more likely to act as organisational advocates than disengaged employees and can play a powerful role in promoting their organisation as an employer of choice.”
For this to work, staff must feel that their views are welcomed and they are valued as individuals. This should result in higher levels of motivation and increased morale which, in turn, should reduce staff turnover. Our aim is to spread the word about how good ITC is to work for and hence attract the maximum number of high calibre candidates for posts who then want to stay with the organisation to reach their full potential. We also have to accept that by attracting the highest calibre of candidate we will inevitably lose a number of high-performing staff over time as they wish to progress beyond what the organisation can offer. We must be prepared not only to embrace this, but actively encourage it, and accept that for the organisation to grow there will be a certain degree of turnover of ambitious staff. The upside of this is that there will be regular opportunities for existing staff to progress through the organisation increasing levels of loyalty and improving morale.
 

Case Analysis of Issues Facing M-TRONICS

M-TRONICS was founded during the consolidation of small local machine shops in the early 1900s. From early 1900s to 1999, M-TRONICS has struggled and faced with many operating and personnel problems within its organization. One of the positive aspects of this company is EBIT Margin. According to the EBIT Ratio, M-TRONICS has done very well in the last decade (90-99). At present it has a bright future. M-TRONICS has to consider every alternative they have in order to make sure that their organization is able to continue with its growth strategy. The alternative that is mentioned below for M-TRONICS will allow them to solve the issues that are being restricted in the organization’s growth strategy. After analyzing the main issues and the internal and external factors, the best alternative for M-TRONICS is to realign the organization so they can think closely about on one strategy and one focus. This case analysis will recognize the issues that are being faced by M-TRONICS, an analysis of the external and internal factors, and to provide the most feasible solution for the organization.
Key Issues
M-TRONICS must evaluate the different options they have that would allow their company to grow within their competitive industries. The key issues and questions that needs to be addressed in this case analysis are:
1. Should the Entrepreneurial Subsidiaries be a key part of M-TRONICS’ growth strategy?
The Entrepreneurial Subsidiaries at M-TRONICS is causing a money drain as large amount of the company’s budget is going towards the subsidiaries instead of their two major divisions (Electronics and Machinery Division).
2. Should changes be made within the organizational structure and strategy?
The structure and strategy at M-TRONICS are different in each division. As each division has operated in different manner, it has resulted in conflict of culture, structure, and strategy of the overall organization.
M-TRONICS has been faced with an increase in turnover over the past few years. The increase is due to employees being unsatisfied with how the organization is operating.
External Analysis (page 7 )
There are two industries in consideration have vastly different characteristics. The industrial machinery industry is characterized by its inactive nature. Success in this industry relies more on quality and a strong sales force rather than on innovation. As it is a slow growth industry, being a market leader is not necessarily dependant on having a first-mover advantage. The market is in a mature phase; therefore, factors like cost, quality, and reputation are important for survival.
The electronics industry is contrary to the machinery industry. The electronics industry is constantly growing and evolving. It is characterized by innovation and development, and longevity is dependant on an evolving product line. Research and technology are the cornerstones of the industry and being a pioneer is essential to success.
Other industries are involved depending on which industry a subsidiary is created in. These industries generally have synergy with the two above and are also reliant on development.
Internal Analysis
M-TRONICS structure has made its culture highly reflective of its history. By keeping the electronics and manufacturing divisions separate, each was able to retain the characteristics and management of Datronics and McKenna Machine Company respectively. Before acquiring Datronics to form M-TRONICS, McKenna Machine Company was a leader in industrial machinery. Datronics was a highly innovative fledgling engineering company focused on high-tech developments. The two together formed a comprehensive manufacturing company with an emphasis on stability in the manufacturing division and development in the electronics division. Sales following the acquisition increased from $600 million to over $2 billion and gross profits grew from $12 million to $104.3 million. Henry McKenna, who had little involvement with the actual operations of the company, but was acting more as a figurehead until his retirement, oversaw the two divisions.

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The manufacturing division is essentially the McKenna Machine Company component of the company, who is led under the same leadership of George McElroy. McElroy was an essential part of the company’s success and was extremely involved with the company. McElroy’s division is driven by performance and stability, reflecting the stagnancy of the industry and the division. Compensation reflected this, as its basis was only 10% based on return on investments and a lower use of incentives.
Datronics founder John Martell led the electronics division, effectively what the Datronics component comprised. Martell’s style was entrepreneurial, and he believed in fostering innovation and a creative atmosphere. The division was constantly growing and searching for new enterprises to engage in. This dynamic style of leadership is what led to Martell’s appointment as McKenna’s successor as president and CEO of M-TRONICS.
Martell’s appointment as president brought several wide sweeping changes as he infused his entrepreneurial spirit and open culture throughout the organization. This was to help develop into new high growth markets, while retaining their current customer base. One of Martell’s biggest implementations was the Entrepreneurial Subsidiary approach.
The Entrepreneurial Subsidiary program was to hedge risks while capitalizing on new investments and retaining talent within the company. The program gave M-TRONICS 80% ownership of the new subsidiary formed by M-TRONICS employees and otherwise staffed by new talent. Depending on the success of the subsidiary, it would eventually amalgamate into the company. The program was designed to entice employees to develop breakthrough concepts without losing out on the benefits of the innovation or the loss of talented employees. Employees were able to expand their ideas in independent ventures with the security and support of M-TRONICS backing them while also making potential substantial gains.
Martell’s changes to the company were very effective in promoting growth and development. However, these changes began to have trouble integrating into the company and dissatisfaction with employees began to rise. Martell’s appointment of Grennan as the new leader of the Electronics division was creating some dissension as his alliances from his subsidiary were causing some dissension. Another issue was that the focus on electronic development had left the manufacturing division behind their competitors and as a result their top-rated sales force was beginning to leave. Costs were rising considerably in the electronics division with some products obsolescing before they reached their break-even mark. The successes of the subsidiaries were now showing weaknesses as loyalties were forming cliques within the company and as returning employees felt dissatisfied in their roles back in the company. Meanwhile, the manufacturing division required an investment of $200 million to $250 million to update their facilities and product line to keep up with the industry.
Alternatives
Realignment
The alternative that we ranked number one is that of realignment. We chose this alternative because we feel that it would bring the company back to one strategy and one focus. This would enable the company to reduce the money drain of the Entrepreneurial Subsidiaries, reduce the talent loss, and allow for investment in both the machinery and electronics divisions.
In order to realign the company, the first step would be to eliminate any future subsidiaries and bring any existing subsidiaries that are profitable into the company under the electronics division. This would stop the losses and loans to those companies, as well as bring back the talent that left to manage those companies. This would leave M-TRONICS two divisions, which could then be managed with one strategy.
Under a single strategy both units would have the same, or very similar, compensation packages and rewards. This would create an environment for all to flourish while retaining and attracting talent, while also increasing morale. It would also create an innovative company, which could return to the high profits while being a leader in the industry. It would also ensure that both divisions would be managed under the same management style, which is not the case at the moment.
Eliminating the Entrepreneurial Subsidiaries
The second alternative that M-TRONICS can consider is to eliminate the Entrepreneurial Subsidiaries. M-TRONICS is better off eliminating the Entrepreneurial Subsidiaries because it has been a money drain on the company. By eliminating the subsidiaries, it would be beneficial to M-TRONICS, as it would enable them to invest more money towards the Electronics and Machinery Divisions. With the savings in cost, it would allow M-TRONICS to directly invest more money into the R&D departments of the Electronics and Machinery Divisions. It would enable the divisions to enhance and improve existing products as well as developing new products. Also by eliminating the Entrepreneurial Subsidiaries, it would reduce the tension within the organization between the employees from the different departments within the divisions. In doing so, it would eliminate the conflicts in the divisions and improve the productivity of the organization.
Flatten Organization
The last alternative that M-TRONICS could adopt is to flatten the organizational structure of the company. Warring factions were developed in many of the organization departments, particularly in the R&D department and between research and other departments (for example, marketing and manufacturing). The conflicts led to poor decisions, lack of cooperation, and wasted energy, which could have limited the future growth of M-TRONICS. It is necessary to make changes to the organizational structure. The result of the changes could benefit the organization just by using resource more efficiently. They could join the two divisions’ research and development department together, which could help Machinery Division improve their product quality by using Electronics Division’s resources. They can also join other similar function departments, such as marketing departments. Machinery Division have too many salespeople, they could use joint sales force to sale both division’s products. This could result in a reduced total sales force. For Electronics Division, they could also join their sub research departments and division research departments together in order to save research costs and increase development speed.
Implementation
It is time for M-TRONICS to rethink their strategy and approach. This will require a realignment of the existing strategy with an increased focus on current profitable subsidiaries and talent retention rather than future subsidiaries. Initially all ideas for future subsidiaries and interests will be put aside and a thorough re-assessment of existing profitable subsidiaries will be conducted. In order to determine if the current approach, they are using needs to be modified or changed in any way.
By using a single strategy to manage both departments, a new compensation and reward’s package will be introduced to both departments. This new reward system will be implemented immediately with increased focus on boosting worker morale, giving workers more empowerment then before, and an improved rewards system. A similar management style will be introduced to both departments as well, which will make organizational practices in both departments more consistent with each other. With increased rewards, career growth opportunities and higher levels of recognition by upper management, these “wild ducks” will not only get the opportunities to challenge themselves in a competitive work environment, but also grow as talented individuals. This new rewards system will insure that current talent is retained and new talent is attracted.
If strategies for profitable subsidiaries are modified then there will be a 6-month test period for their new strategies. Afterwards, performance will be evaluated against pre-set benchmarks regarding revenues and operating margins along with potential growth opportunities. At the moment, there will be a shift of focus from future subsidiaries, as they will not be considered for some time in order to reduce current financial strains. Focus will be reduced mainly to existing profitable subsidiaries, which will come under the electronics division, and the machinery division.
The main area of focus in the machinery division will be employee motivation and product quality. The main aim will be to reduce turnover and bring back the motivation that the employees had, especially in the sales force. However, one of the reasons why the sales force was losing its motivation was due to inferior quality products that were being produced. This new strategy will cause a shift of focus in the organization and reduce financial strain. It will allow M-TRONICS to invest more in the machinery department in order to bring back the quality that M-TRONICS have been known for.
With improved product quality, more standardized management practices throughout the organization, improved rewards and bonus systems, increased worker empowerment and morale, and a new approach, M-TRONICS will be on its way to once again becoming the market leader it was before.
 

The Current Situation Facing Tanzania SMEs

ABSTRACT
This paper has examined the current situation facing Tanzania SMEs and how does they survive through innovation in this era of globalization. The paper also discussed challenge prevailing in growth and development of Tanzania SMEs, as late 70’s and early 80’s SMEs started to become more innovative and more flexible in term of reducing costs, Thus, they started providing intermediate goods more efficiently than large enterprises, as people starts to be more aware and more skilled on business environment through economic integrations, movement of people and capital which caused by globalization. While Tanzania SMEs tries to survive by innovation in globalization era technology, competition and their abrupt bankruptcy become a critical challenge which this paper will analyses and give the recommendation on how to go about it so as to survive in this era which other developing countries like China, India and Brazil took as opportunity to stabilize they economy.
ANALYSIS ON IMPORTANT OF GLOBALIZATION IN TODAY’S BUSINESS
WORLD
As globalization is integration and interdependences of world economies, this cause liberalization of international trade as trade barriers where removed, technology progress example uses of internet which make customers more access to product of different countries and allows ease partnership between entrepreneurs.
Through finding which collected on preparation of essay one, globalization can be contributed by the following factors in this recent decade:

Increase in and expansion of technology,
Liberalization of cross-border trade and resource movements,
Development of services that support international business,
Growing consumer pressures,
Increased global competition,
Changing political situations,
Expanded cross-national cooperation.

Also globalization brought different challenge in today’s business environment, among those issues there business integration, creativity, movement of technology, movement of intangible and tangible resources.
Throughout recorder of history, human contact over ever wider geographic areas have expanded the variety of resources, products, services, and markets available to consumers. People has altered the way they wants and expect to live, and they have become more deeply affect (positively and negatively) by conditions outside of our immediate domains (Daniels J.D, et al, 2009, pg48)
This global challenge which face all sector also effects Tanzania economic as government implemented Tanzania economic reform programme in 1986 and review in 1996 which base on philosophy of dedicate country economy in market economy whereby the private sector will take lead in creating income and employment, while SMEs was accounted for a large share of the enterprises active in Tanzania.

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MAJOR CRITICISMS OF GLOBALIZATION
Although we have discussed seven broad reasons for the increase in international business and globalization, we should remember that the consequences of these trends remain controversial. To thwart the globalization process, anti-globalization forces regularly protest international conferences (sometimes with attendant violence). There are many pertinent issues, but we focus on the three broad categories: threats to national sovereignty (i.e. countries lose sovereignty), growth and environmental stress (I.e. the resultant growth hurts the environment), and growing income inequality (i.e. some people lose both relatively and absolutely).
Threats to national sovereignty
You probably heard the slogan “Think globally acts locally”. In essence, it means that the accommodation of local interest should prevail over global interests. Some observers worry that the proliferation of international agreements, particularly those that eliminate local restrictions on how good are bought and sold, will diminishing a nation’s sovereignty- that is, a nation’s freedom to “act locally” and without externally imposed restrictions.
Economic growth and environmental stress
Much anti-globalization criticisms revolve around issues of economic growth. According to one argument, as globalization brings growth, it consumes more nonrenewable natural resources and increases environmental damage- despoliation through toxic and pesticide runoffs into rivers and oceans, air pollution from factories and vehicle emissions, and deforestation that can affect weather and climate.
Growing income inequality
In measuring economic well-being, we must look not only at our absolute situations but also at how well we’re doing compared to the economic well-being of others. We generally don’t find our economic status satisfactory unless we’re doing better and keeping up with others.
Also Tanzania made development Vision that by the year 2025, “Tanzania should have created a strong, diversified, flexible and competitive economy, which can effectively cope with the challenges of development and, which can also easily and confidently adapt to the changing market and technological conditions in the regional and global economy”.
BARRIERS HINDERING TANZANIAN SMEs TO COMPETE GLOBALLY
The following are suggested to be the barriers impending Tanzanian SMEs to expand beyond domestic markets.
Ability to acquire financial capital
On recognition of the fact that many SMEs in Tanzania do not have ability to acquire financial capital, the government has given out a total of 4.85bn/= in loans to 14,272 for the financial year ending 2003/2004 as a support to Small and Medium scale entrepreneurs’ development projects (URT, 2004).which wasn’t enough.
Legal and regulatory framework
Report from Business Environment Strengthening for Tanzania (BEST) revealed that, the government has been working in collaboration with a number of ministries and department to put in place a legal framework conducive to speedy investments, streamlining and registration of business activities. (Daily News, July 9, 2005).but in fact these institutes create bureaucracy and hinder the growth and development of SMEs in the country, through long process of business registration.
Incoherence of government policies for SMEs development
On recognition of SMEs growth potentials, the government of Tanzania has been implementing the Small and Medium Enterprise Development policy (2003) to support the development of SME sector. But the policy aimed more at increasing the contribution of the Gross National Product and export earnings as well as winning the war against poverty. (Sunday observer June 26, 2005)
Lack of managerial skills
Research done by Gibb, (1983) revealed that, Small industry in a large number of observed developing countries demonstrate a multiple of specific and in many ways non-conventional managerial traits that one seldom encounters in medium or larger firms.
First is the very small management team that brings along with it a lack of specialization, a predominance of multi-functional roles, a shortage of promotable manpower, and a pronounced domination by a leader and large measure of informal control? Second, there is the limited control of the environment and the limited resources available to scan its anticipated potential changes and adapt capacity accordingly. Third, there is the informal pattern of operation, with conflicts resolved more easily and loyalties assuming a high magnitude. Fourth there is the general unawareness or indifference to the structured approach to the managerial function and the need for a longer term vision of the enterprise and its environment.
The environmental influence
Small businesses, especially, are struggling nationally and internationally to survive. For an organization to survive and prosper there is need for an understanding and adjustment to the external environment. Lack of response to the changing global environment will result in the organizations not meeting the needs and wants of their stakeholders. Responding to the environment essentially means matching the capabilities of the organization with changing environment. This scenario has meant that the success of SMEs in this changing environment of globalization depends in large part on the formulation and implementation of strategy.
(e.g. Miles and Snow, 1978; Porter, 1980).
Strategy in this context reflects the firm’s short- and long-term responses to the challenges and opportunities posed by the business environment. Companies execute strategies to attract customers, meet the needs of the stakeholders and deal effectively with other environmental concerns, such as environmental issues.
Example
Globalization has generated competition even more competition for the SMEs particularly the black African business. The growth in ethnic groups in many advanced economies poses particular challenges for global marketing strategies. In the UK an increasing ethnic diversity of markets is attributed, in part, to an increased mobility of populations across national frontiers and a corresponding growth in ethnic consumers
(Wilkinson and Cheng, 1997; Nwankwo and Lindridge, 1998).
Limited experience of international trading activity
Smaller firms find that the global marketplace can offer tremendous opportunity for business growth and development (Winch and Bianchi, 2006). Notwithstanding the benefits (on both on a firm and macro-environment level) to be derived from international trade (Bell, 1997), this body of literature also argues that the smaller the firm is often more vulnerable to barriers associated with resource limitations, operating difficulties and trade restrictions (Katsikeas and Morgan, 1994; Leonidou, 2004). As Buckley (1989) maintains, internationalization by its very nature involves a high degree of risk and SMEs tend to have more limited resources to cope with the downside of foreign expansion. Hence, it has been argued that the barriers to entry that limit international expansion are systematically higher for smaller firms than for larger firms (Acs et al., 1997; O’Farrell and Wood, 1998).
It has been highlighted by Bell (1997) that the most widely investigated topic in the literature is the barriers and obstacles to exporting, which have been categorized in terms of internal and external barriers. External obstacles to SME internationalization include procedural, governmental and task barriers (Leonidou, 2004), which may emanate from the domestic market or overseas market (Fillis, 2001). For small firms, the prospect of entering into international markets can often be seen as a risky venture (Burpitt and Rondinelli, 2000; Masurel, 2001) especially given financial market imperfections, exchange rates, and differences in legal systems, culture and languages (Acs et al., 1997). Therefore, as the research findings by Knight and Liesch (2003) acknowledged, SMEs are more often less able to sustain competitive threats and unfavorable macro-events in the external environment than larger firms. This is particularly characteristic of SMEs with very limited experience of international trading activity defined as “tentative” internationalizing firms (Lloyd-Reason and Mughan, 2003). For these SMEs at the early stage of internationalization, more often the internal skills and knowledge needs of the firm have been met and all is required is market intelligence to fully engage in foreign market expansion.
Export capabilities and export performance
Over two decades, many studies have researched the specific elements of export capability that may determine export performance in SMEs. Unfortunately, much of this was fragmented. Indeed, reviews by Aaby and Slater (1989), Styles and Ambler (1994), Leonidou (1995), Fraering (1996) and Zou and Stan (1998) all recognize the need to consolidate empirical export research. Amongst these authors there is general agreement that the elements of export capability relating to export performance centre around three categories:
(a) a firm’s characteristics;
(b) a firm’s competencies; and
(c) a firm’s export-marketing strategy capability.
(a). Firm’s Characteristics
One of the reasons the activities of SMEs in international markets are seen to deserve special attention is the challenge SMEs with limited resources face when competing in such markets. It is perhaps unsurprising, therefore, to find that research (Dichtl et al., 1990) did establish links between firm size and export performance. However, a number of other studies have questioned the existence of such a direct link. Bonaccorsi (1992), Katsikeas et al. (1997) argued that firms with the same amount and quality of resources may well choose different export strategies and thus strategic capability must be a mediating variable in the relationship between a firm’s resources and export behavior, and not firm size. Larger firms achieved a better competitive position than smaller firms when they had greater marketing capabilities and product superiority. Katsikeas et al. (1997) found that the level of export involvement and the type of product marketed were perceived to be more important elements of capability than the size of the firm. Thus, it seems that, whilst it may be an obvious explanatory factor in export success, size is not necessarily viewed as a key export capability.
(b). Firm’s competencies
Competencies that have been directly associated with export success include domestic market performance, product uniqueness, production capacity, labour skills and the type of industry in which the firm operates. Ogbeuhi and Longfellow (1994) and Katsikeas et al. (1997) both make reference to factors such as, export market planning skills, quality of export staff, foreign market connections and financial management skills as being critical capabilities in enhancing export performance.
Aaby and Slater (1989) propose that competencies in all these areas are critical to export success. Conversely, weakness in these areas is seen as a potential cause of failure in export markets. More specifically, Ogbeuhi and Longfellow (1994) found that export market failure often results from poor market analysis, absence of product market match, ineffective distribution, and lack of management planning and control.
(c). Strategy variables
Much of the earlier work examining strategy variables focused on individual capabilities: product design and persistence in the market. However, more recent research has put greater emphasis on the information generating capabilities of the firm. Toften and Olsen (2003), Burridge and Bradshaw (2001) and Hart and Tzokas (1999) suggest that successful exporters have strong capabilities in accessing and using the information required for long term export marketing planning, whereas less successful ones put the emphasis purely on obtaining information for the day-to-day running of the business. This is supported to some extent by Johanson and Vahlne (1977) who conclude that, whilst firms may initially export to markets that are geographically close, it is the subsequent increase in market knowledge and information that can lead to rapid expansion in more “psychically distant” markets.
Other authors have also provided empirical evidence of the importance of marketing variables in relation to export performance (see for example: Shoham et al. (2002), Thirkell and Day (1998), Madsen (1994), Styles and Ambler (1994), Katsikeas et al. (1996). Admittedly, the weight of support for the role of relationships in export performance comes mainly from the network perspective, a view that focuses on the formal and informal relationships that bind an organisation (Johanson and Mattsson, 1988). One of the main tenets of this perspective is that export performance is the result of interaction and the development of numerous relationships (Johanson and Vahlne, 1990).
OPPORTUNITIES AVAILABLE FOR SMALL AND MEDIUM ENTERPRISES TO EXPAND BEYOND DOMESTIC MARKET
Scarborough et.al, (1996) suggested that growing number of SMEs are recognizing that going global is not only a strategy reserved solely for large industries, but increasing globalization of business also favors SMEs. There are several opportunities available for SMEs pursuing a Global presence these are:
Direct exporting
Exporting starts with a global mind set which unfortunately is not all that common among owners of SMEs. With increased global competition putting pressure on domestic market, and trade agreements opening up foreign market, as never before, however, SMEs are increasingly looking towards exporting.
However, SMEs, realizing the incredible profit potential it offers, are making exporting an ever-expanding part of the marketing plans.
Use of internet technology to penetrate across boarder market
The Internet is a worldwide network of interconnected computers consisting of thousands of smaller networks. The worldwide website (WWW) is an information retrieval system that operates on the Internet (Ndiaye et al 2000) organizations have been increasingly deploying internet to serve their business process needs. Being an information rich network, internet provides further opportunity of creating knowledge to SMEs. This is an indication that stakeholders in SMEs can communicate with the outside world to add value to their processes (Mwaijonga, 1999). Once connected to Internet SMEs can create their own website and thus become more accessible to the rest of the world (www, digital dividend .org)
International franchising
Franchise is license granted to manufactures, distributor, trader, etc, that allows him or her to manufacture or sell product or service in a particular area for specific period of time .The grantor of license (Franchiser) is usually paid a royalty on sales by the holder of the license. The situation of domestic market is the principle driving force pushing entrepreneurs into foreign markets. In many cases the products and services sold in International markets are identical to those sold in home country. However, Franchisers have learned to modify their products and services to suit local tastes and customers.
Foreign licensing
SMEs enter foreign markets by licensing businesses in other nations to use their patents, trademarks copyrights, and technology is a relatively simple way for even the most in experienced business owner to extend his reach into global markets.
Formation of alliances and joint ventures
Melanie, Ravi (2002) adds that in order for SMEs to survive in markets where there are large competitors, they can form alliances with similar firms to increase the rate of market penetration and reduce financial risk, by this way, the SMEs may utilize overseas technology to overcome diseconomies of scale and to produce innovations which differentiate themselves significantly from large competitors. Because SMEs have limited resources and relative inability to absorbing the costs of the operations, Most importantly they can benefit market reputation that a foreign partner is enjoying, thus this create opportunity for SMEs to go beyond domestic market.
Credit guarantee scheme for SMEs
Perege (2005) indicates that, the long awaited credit Guarantee scheme for small and medium enterprises set up by the government of Tanzania to help SMEs access foreign a market is now ready. Exporters from the SMEs sector can now start sending their application for funding through the Small Industries Development Organization (SIDO).
The fund, which amounts to Tanzanian shillings 3 Billion as set up in the previous financial budget 2003/2004) with the purpose of assisting small and medium enterprises expand exports of their products. Under the credit Guarantee scheme, once an exporter has applied for the loan from any banking institution and has been asked to produce guarantee/ collateral for that affect, SIDO in collaboration with BOT, will assess the possibility for acting as guarantor’s .In case exporters failed to pay back their loans, the guarantor would pay the loans (Perege, 2005).
Unique goods or services
Some SMEs have products that are superior in quality than what is currently offered in the targeted International market. This helps the SMEs gain an edge in attracting buyers and quickly establishing a market position. Many professional SMEs now are finding that they have an opportunity to establish market positions worldwide because they have specific expertise that is in strong demand.
AFFECT OF INNOVATION IN GROWTH AND DEVELOPMENT OF SMES IN TANZANIA.
Combining the concepts provided in previous studies on the first essay, a diffusion model can be good to Tanzania SMEs as it emphasizing acquisition, adoption and adaptation of already existing innovations has been developed for the SMEs industrial sector. The focus of the research in this mode is on utilizing the entrepreneurial characteristics and capabilities to access and exploit already existing technology.
Information and knowledge about sources of technology are important components in diffusion process. For a successful innovation in a competitive market, integration of SME activities both vertically and horizontally is essential. The model contains concepts (constructs) whose existence and possible relationships have been addressed and gauged in order to determine how they influence innovativeness. The constructs are categorized as:
(a) Technological information and knowledge;
(b) Knowledge and skills;
(c) Nature of the market and external relationships;
(d) Characteristics and capabilities of SMEs.
MEASUREMENTS OF INNOVATIVENESS
To measure innovativeness of SMEs in the Tanzanian manufacturing sector, a time-frame of three years was used. This time-frame was selected because of the nature of the measurements used required owners/managers of SMEs to provide accurate estimates of their innovativeness. Technological change that was selected as the innovativeness indicator of technology adopted was measured as it was experienced by owners/managers of SMEs.
Innovation measurement is based on technological adoption, modifications and incremental changes that took place in the SMEs in the Tanzanian manufacturing sector. This approach is in line with a study by Landa (1993), in which he was able to separate innovating from non-innovating firms.
Measurements of Innovation Indicators
(a) Technological information and knowledge; this concept is divided into technology information access and technology knowledge awareness.
(b) Knowledge and skills; this concept is divided into two concepts: level of knowledge and skills, and owner.
ANALYSIS OF THE ESSAY FUNDINGS
This part includes the analysis of findings regarding the essay and the concluding remarks and recommendations.
Markets for SMEs
Different researchers were interested to establish whether Tanzanian SMEs sales their products in the external markets, local market or both.
According to the research on “the barriers hindering Tanzanian SMEs to expand beyond domestic markets”, done by Neema J.M. (2010), the findings show that (61.11%) of entrepreneurs (or businessmen) sale their products in local market and only (38.89%) of businessmen sale both local and external market. This suggests that the local market looks friendly to the SMEs than external market.
It is observed that, export modes in Tanzania differ from one firm to another. After trade liberalization, many entrepreneurs have started to export into foreign markets freely instead of using the traditional government channels. (Argument from the essay writer, 2011).
It is revealed that, most SMEs which use this method do it mainly by participating in neighbors countries though trade fairs, exhibitions and delegation. However, direct exporting has been possible due to mainly initiatives from buyers; most of these SMEs have their customers abroad who use their product (Argument from the essay writer, 2011).
Lack of external marketing information
On the other hand the findings show that they suffer from lack of external marketing information. They are often unable to keep track of trend with changing tastes and preferences of external consumers. Also most of SMEs they are not using website to penetrate beyond domestic market. This result in them losing either existing market share or being unable to penetrate new market without proper assistance from government and other institutions. It is also observed that, inadequate marketing services have been hindering SMEs find it difficult to obtain relevant knowledge and information about markets (Argument from essay writer, 2011).
Lack of advanced technology
According to the analysis on this essay, it is revealed that technology constitutes the major constraints for the SMEs to inter into foreign markets. Entrepreneurs and other businessmen have a belief that due to the use of traditional technology in manufacturing of products, SMEs produce low quality products that do not meet international standards. This is also a view held by UNIDO, which establishes that small-scale businesses often use inefficient low-cost technologies that yield products of poor quality and pose hazards to health and environment.
A number of small-scale business strongly agree that they get difficulties to cope with external market competition because of low quality products and high prices for the products manufactured by SMEs compared with products of other countries like China, Japan, and Kenya, etc.
CONCLUSION
Conclusion on Global Perspective
The continuous global trends are unseeingly affecting all businesses throughout this economy. These global trends cause a constant need to accommodate, which is applying more costs and frustration to all businesses. The global affects that people who are unaware of what is slowly bringing down businesses in this economy.
Along with tending to the extra costs incurred from globalization, businesses still have to focus on fulfilling customers expectations in order to improve satisfaction and increase future business. Outsourcing of technologies and continuous innovations opens doors for many businesses to gain access in a foreign market, but not all businesses can handle and maintain activity in these roughing economies.
Conclusion on Africa Perspective
One of the weaknesses of African countries is the relative small size of the industrial sector.
This sector is crucial for development and science and technology policies must support its growth and strengthening. The sector may be the weakest link in the development of many African countries. Hence the priority must be accorded to the development of this sector through building entrepreneurial capacities to acquire and apply appropriate manufacturing technology for enhanced competitiveness. Priority must also be accorded to the creation and development of small and medium sized enterprises (SMEs). Science and technology policies must support this orientation.
Conclusion on Tanzania Perspective
This essay is about analyses the “Impact of innovation in today’s Tanzania SMEs in this era of globalization” significantly there is a lot reveal that there are some opportunities for Tanzania SMEs to enter in foreign markets that have not been fully exploited because of some constraints as identified above, as many SMEs are unaware of opportunities currently offered by commercial banks to support their businesses.
Lack of access to finance can usually be found at the top of any list of the problem of small business. SMEs generally start with their own resources and are undercapitalized. SMEs in Tanzania suffer from lack of information on available support and market signals, including those for local and export markets, lack of managerial skills and international marketing skills, lack of coherent government policies for SMEs development inhibits expansion of SMEs both domestically and beyond domestic market. Products of most Tanzania SMEs are of varying quality and costly to produce due to lack of access to technology and know-how.
RECOMMENDATION FOR POLICY MAKERS
The formulation, as well as the implementation, of a clear development policy on SMEs is of paramount importance given the contributions of SMES to economic and industrial development.
The use of obsolete technology in Tanzania SMEs and a lack of awareness of source of new technology as the result of heavy dependence on foreign technologies, lack of innovations and lack of know where to find appropriate technologies to be acquired, and lack of internal capacity to achieve technical innovation. But innovation diffusion depends, among other things, on the economy and government of a nation (Silveira, 2001).
This essay suggests the importance of having a national innovation policy that links together all the economic factors. This is considered particularly important for Tanzania SMEs because of market failure, international competitiveness, and institutional inadequacies.
Recommendation to Tanzania chamber of commerce industry and Agriculture (TCCIA)
It should emphasize on advocacy and lobbying. That’s representing the opinions of their members to the government and keeping and assisting in the formulation of policies concerning business so as to meet needs and concerns of their members so that they can grow easily and expand their business locally and externally.
Recommendations for further studies
It is recommended that Government should create a passage of law and regulations that allow the SMEs to access the financial aids and the shortest way to get loans from development and Banks.
The management capacity is one of essential factor to get success of the national development. Training for business managers is very necessary because they decide the fate of enterprises.
One of the most difficulties of SMEs is lack of information and connection; this is more serious for SMEs to access domestic and foreign markets.
The government should provide information about domestic and foreign markets through establishing information centers that can play a connection between SMEs and related sectors or organizations.
 

Experiences of and Challenges Facing Women in Male-dominated Work

Gender & Disadvantage at Work

(i)                  What are the particular experiences of and challenges facing women (compared to men) working in male-dominated occupations or industries?

(ii)                What can we expect for the future of women in male-dominated occupations or industries?

(iii)              How are the experiences of women manifested, and responded to, in your workplace?

(iv)               In light of the implications for ethics or sustainability of developments gender equity, in society in general or in your own workplace in particular, should anything be done about it?

In the 19th century, women were underpaid, had poor employment conditions and had continuous docking of wages. (Peetz, 2019). Now, since then, women have made a huge progress towards their representation in the workplace. (Socratous, 2018, p.167). This is due to the business world being increasingly competitive, organizations now cannot afford to miss out on the contributions of talented women. (Chang, & Milkman, 2019, p.5). This report distinguishes experiences of and challenges facing women in male-dominated work​, the expectations for the future of women in male-dominated work​, the experiences of women manifested, and responded to, in the workplace​ and what should be done in light of the implications for ethics or sustainability of developments gender equity, in society, in general or in the workplace. My main focus on females in the male-dominated workplaces include the mining industry (the workplace – Glencore), and other male-dominated industries. 

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The labour market segmentation refers to female-dominated and male-dominated workplaces, is critical in understanding the situation of women. (Peetz, 2015, p. 353). Only 5.5% of all women work in male dominated occupations. (Institute for Women’s Policy Research, 2018, as cited Avendaño, 2018). Women who work in male-dominated occupations face different challenges to those whom work in more gender-balanced and female-dominated occupations. (Martin, & Barnard, 2013, p. 1).

The impact of the domestic sphere on the value of work varies according to segmentation. (Peetz, 2015, p.353).  Because of segregation however, women can be disadvantaged in male-dominated networks, due to the access of the high-level men, which significantly is related to women’s career advancement and influence within the organization. (Timberlake, 2005;2012, p. 41). Kanter described women in minority skewed groups, as tokens, “individuals who belong to a social category that constitutes less than 15% of the entire group.” (McDonald, Toussaint, & Schweiger, 2004, p. 401-402). Kanter also identified issues in relation to women as a token group and other aspects including high visibility, polarisation (the difference between tokens and dominants are exaggerated), the token group and assimilation of women into ‘traditional’ female roles, which leads to ‘role entrapment’. (Peetz, 2019, p.150).

Women in male-dominated occupations, have high performance visibility, meaning that mistakes made are easily remembered. Leaving them to comment ‘she’s not up to it’ and ‘I said women can’t do this job’, whereas as men are easily forgotten, therefore women work harder to achieve recognition or promotions. (Kanter, 1977; Murray and Peetz, 2010, as cited Peetz, 2015). Discrimination in promotion and abuse are also some of the challenges faced by women in the labour force. (Forkuor, Buari, & Clifford Kwaku Agbenyo Aheto, 2019, p.2).

For the Future of Female jobs, they are less likely to become automated compared to men, according to Frey Osborne (as cited Peetz, 2019). Perhaps, an issue for women is what role they will have in the key jobs of the future when many of those jobs are male-dominated. (Peetz, 2019, p.153).  As men dominate in managerial jobs, they dominate in jobs also relating to engineering, computing and Information and Communication Technology (ICT). (Peetz, 2019, p.153).  However, segmentation is forecasted to decline in the future. (Peetz, 2019). Over the past two decades female share of employment has risen and the rising rates of female labour force participation indicates that female employment has grown faster than male’s employment. (Peetz, 2019, p.141). As recorded from 2017, the trend female participation rate climbed to a further historical high of 60.4 per cent. (Australian Bureau of Statistics (ABS), 2017).  However, in Australia, the female share in the computer system design and services virtually halved between 1985 and 2015. (Peetz, 2019, p.153).  Internationally, this is an employment area that is not welcoming of women, predominantly due to scandals and mistreatment or sexual harassment in some high-tech companies. (Peetz, 2019, p.153). 

Kanter, found that women or other minorities need to represent more than the 15% of a work group to have any effect in the workplace. (Peetz, 2019, p.150). Eveline and Booth (2002) reflected this issue of women working in the male-dominated industry of mining. In the 1980s, the company sought to hire women in part for public relations reasons in the context of new anti-discrimination laws, and in part because women was thought, would ‘civilise’ the men. (Peetz, 2019, p.150). However, it was recorded that when Emsite joined the Voluntary Affirmative Action Program (‘a fair go for women’ program), women’s female employment fell from 14% in 1985, to just 4% in 2000. (Murray, & Peetz, 2010). This reflects what Kanter had said, that women have no capacity to have an effect with just a small percentage in the workplace.

From as early as the 19th century, “Governments, unions and male miners opposed any prospect of women working in mines.” (Murray & Peetz, 2010). Instead of supporting unequal wages for men and women, now, trade unions for example have been easing their underrepresentation of women. (Peetz, 2019). Women seem to gain more from union membership compared to men, as those with weaker labour market positions often have more gain from unionisation. (Peetz, 2019, p.143). Unionisation also appears positively linked to gender equity and lowering the gender pay gap as countries with higher rates of union density tend to have higher ratios of female to male earned income. (Peetz, 2019, p.143).

Skills or capabilities of women in male-dominated workplaces, are continually questioned by men if women can do ‘a man’s job.’ (Peetz, 2015, p. 353).  However, men expect tradeswomen to ‘do it like a man.’ (Denissen, 2010, p. 1059).  A survival strategy commonly by women to fit in is to become ‘one of the boys’ (Wright, 2016), however it has limitations as explained by one miner in Murray & Peetz (2010) that “you make sure you know your limits” as “boys can take it too far.” (261-262).  As there is only 16.3% females in the mining industry (Workplace Gender Equality Agency, 2019), accepting them hasn’t been easy for men see them for who they are, a woman. From experience at Glencore, many women, whom in working with, can sense the difference in their behavior and personality when around men, compared to talking to other women.

Australia has made significant progress towards gender equality in recent decades, however, women still continue to earn less and are less likely to advance in their careers as far as men. (Workplace Gender Equality Agency, n.d.). Women who enter male-typed occupations such as mining are usually regarded as incapable “intruders.” (Tallichet, 2000, p. 235). They find it difficult to become socially integrated because of men’s sexual harassment and hostility. (Tallichet, 2000, p. 235).  Moreover, as women are excluded from these networks, the qualifications for their advancement tend to disadvantage them; a job-based sexual division of labour results. (Tallichet, 2000, p. 235).

In male-dominated areas, men are more likely to reward other men through promotions. (Kanter, 1977, as cited Peetz, 2015, p.353). This reflects the career barriers women face in relation to accessing promotions, or training necessary for career advancement, as supervisors expect women to perform poorly or leave to have children, which in-turn results in direct or indirect discrimination. (Peetz, 2015, p.354). Both men and women may experience harassment at work, but women are more likely, so forms of harassment experiences also vary by labour segmentation. (Australian Human Rights Commission, 2012, as cited Peetz, p. 354). For example, in male-dominated workplaces, harassment can include pin-ups or pornography magazines posted up in common areas, even when seven out of eight women objected (Eveline Booth, 2002). In mining industries today, from experience in the workplace, men still watch inappropriate things at work, disregarding that women/men/management walk by and see this, ignoring their feelings and other discrimination matters.

Ethics and sustainability relate to each other. Sustainability refers to economic activity that meets present needs without compromising the ability to meet future needs. (Peetz, 2019, p. 162). As ethics has different views to different people, it doesn’t lessen the importance of identifying ethical considerations in the workplace. (Peetz, 2019, p. 163). The concept of Corporate Social Responsibility (CSR) means that corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications. (Australian Human Rights Commission: Corporate social responsibility & human rights, 2008).

Australia has made progress over time with achieving gender equality, however at work, women continue to face a gender pay gap and other barriers, such as parental leave and flexibility arrangements to care for family. (Australian Human Rights Commission: About Sex Discrimination, 2019). Although mining companies view sexual harassment as a serious offence and treat it accordingly, it is evident that much more needs to be done to minimise and eliminate the occurrences of sexual harassment in the workplace. (Botha, 2016, p. 11). The Sex Discrimination Act 1984, Anti-Discrimination Act 1991, The Fair Work Act 2009, Equal Opportunity for Women and Equal Employment Opportunity are all examples of legislation that cover partially discrimination, harassment and bullying in the workplace. In the mines, organisational policies and practices, Enterprise Agreements and Awards are also important when dealing with workplace discrimination and harassment.

The term gender pay gap, refers to the proportionate difference in wages received by men and women (Peetz, 2015, p.345). Encouraging women to enter male occupations associated with higher earnings has been one strategy for reducing the persistent gender pay gap. (Women and Work Commission, 2006, as cited Wright, 2016). Currently, Australia’s national gender pay gap is 14.1%. (Workplace Gender Equality Agency, 2019). At November 2018, women’s average weekly ordinary full-time earnings across all industries and occupations was $1,455.80 compared to men’s average weekly ordinary full-time earnings of $1,695.60. (Workplace Gender Equality Agency, 2019). In Australia, there is a large gender pay gap, however it is more pronounced in the mining industry. (Mayes, & Pini, 2014). In the mining sector, the 2012 gender pay gap was recorded as 21.8%, ranging from 2.9% at the lower end of the salary scale to 32.3% at the upper end. (AusIMM, n.d, as cited Mayes, & Pini, 2014, p.531). The mining Company Glencore in the UK, for example, women paid hourly wages are 27.7% lower than men. (Glencore UK Ltd, 2017-18).

Employers play a key role in normalising the uptake of fathers/partners taking parental leave and flexible working arrangements to meet caring responsibilities. (Workplace Gender Equality Agency, n.d., p.11). One mine worker in Murray & Peetz, had to quit because child care became too hard with her first child and working seven-hour shifts (p.269). As female participation rising, mining companies are leading the way with flexible workplace arrangements and paid parental leave. (Minerals Council of Australia, 2018). More than 62% of mining companies also now offer paid maternity leave over an average period of 12.1 weeks. (Minerals Council of Australia, 2018).  For example, in relation to closing the parental gender leave gap, countries such as Iceland, Sweden, Germany, Denmark and the United Kingdom, have parental leave policies that are flexible about when leave can be used, and have parental leave payments that are relatively high. (Workplace Gender Equality Agency, 2018). This way, parents both have more flexibility in how to care for their children but also supports women and men as both employees and carers. (Workplace Gender Equality Agency, n.d).

The purpose of this report was to explain being a woman, can be seen as already a disadvantage in male-dominated industries. Yes, women have come far since the 19th century, however it is still a long on-going process just for women to come this far, and still not being paid equally to men. “To be able to achieve this with gender equality in the workplace for both men and women, this requires:

Workplaces to provide equal pay for work of equal or comparable value

Removal of barriers to the full and equal participation of women in the workforce 

Access to all occupations and industries, including leadership roles, regardless of gender; and

Elimination of discrimination on the basis of gender, particularly in relation to family and caring responsibilities.” (Workplace Gender Equality Agency, n.d.).

Australian Bureau of Statistics. (2017). Labour Force. Australia, 2017, (Catalogue No. 6202.0). Retrieved from https://www.ausstats.abs.gov.au/ausstats/meisubs.nsf/0/49C4D14146A9A380CA2582180013F7DB/$File/attcuuix.pdf

Australian Human Rights Commission: About Sex Discrimination. (2019). Retrieved from https://www.humanrights.gov.au/our-work/sex-discrimination/about-sex-discrimination

Australian Human Rights Commission: Corporate social responsibility & human rights. (2008). Retrieved from https://www.humanrights.gov.au/publications/corporate-social-responsibility-human-rights

Avendaño, A. (2018). Sexual harassment in the workplace: Where were the unions? Labor Studies Journal, 43(4), 245-262. doi:10.1177/0160449X18809432

Botha, D. (2016). Women in mining still exploited and sexually harassed. SA Journal of Human Resource Management, 15(1), 1-e12. doi:10.4102/sajhrm.v14i1.753

Chang, E. H., & Milkman, K. L. (2019). Improving decisions that affect gender equality in the workplace. Organizational Dynamics, doi:10.1016/j.orgdyn.2019.03.002

Eveline, J., & Booth, M. (2002). Gender and sexuality in discourses of managerial control: The case of women miners. Gender, Work & Organization, 9(5), 556-578. doi:10.1111/1468-0432.00175

Forkuor, J. B., Buari, M. A., & Clifford Kwaku Agbenyo Aheto. (2019). Breaking barriers: The experiences of women in male dominated informal sector occupations in urban ghana. Gender Issues, , 1-19. doi:10.1007/s12147-019-09231-5

Glencore UK Ltd: Gender Pay Gap. (2017-18). Retrieved from https://gender-pay-gap.service.gov.uk/Employer/AsNFYiMs/2017

Martin, P., & Barnard, A. (2013). The experience of women in male-dominated occupations: A constructivist grounded theory inquiry. SA Journal of Industrial Psychology, 39(2), 1-e12. doi:10.4102/sajip.v39i2.1099

Mayes, R., & Pini, B. (2014). The australian mining industry and the ideal mining woman: Mobilizing a public business case for gender equality. Journal of Industrial Relations, 56(4), 527-546. doi:10.1177/0022185613514206

McDonald, T. W., Toussaint, L. L., & Schweiger, J. A. (2004). The influence of social status on token women leaders’ expectations about leading male-dominated groups. Sex Roles, 50(5), 401-409. doi:10.1023/B:SERS.0000018894.96308.52

Minerals Council of Australia: Miners at Work. (2018). Retrieved from https://minerals.org.au/sites/default/files/Miners%20at%20Work_WEB_3.pdf

Murray, G., & Peetz, D. (2010). Women of the coal rushes. Sydney: University of New South Wales Press.

Peetz, D. (2015). Regulation distance, labour segmentation and gender gaps. Cambridge Journal of Economics, 39(2), 345-362. doi:10.1093/cje/beu054

Peetz, D. (2019). The Realties and Future of Work. ANU Press. Australia. Manuscript in preparation.

Socratous, M. (2018). Networking: A male dominated game. Gender in Management: An International Journal, 33(2), 167-183. doi:10.1108/GM-11-2016-0181

Tallichet, S. E. (2000). Barriers to women’s advancement in underground coal mining. Rural Sociology, 65(2), 234-252. doi:10.1111/j.1549-0831.2000.tb00027.x

Timberlake, S. (2005;2012;). Social capital and gender in the workplace. Journal of Management Development, 24(1), 34-44. doi:10.1108/02621710510572335

Wright, T. (2016). Gender and sexuality in male-dominated occupations: Women working in construction and transport. London: Palgrave Macmillan Limited. doi:10.1057/978-1-137-50136-3

Workplace Gender Equality Agency: About workplace Gender Equality. (n.d.). Retrieved from https://www.wgea.gov.au/topics/about-workplace-gender-equality

Workplace Gender Equality Agency: Australia’s Gender Pay Gap Statistics. (2019). Retrieved from https://www.wgea.gov.au/data/fact-sheets/australias-gender-pay-gap-statistics

Workplace Gender Equality Agency: Gender Segregation in Australia’s Workforce. (2019). Retrieved from https://www.wgea.gov.au/data/fact-sheets/gender-segregation-in-australias-workforce

Workplace Gender Equality Agency: Towards gender balanced parental leave. (n.d.). Retrieved from https://www.wgea.gov.au/sites/default/files/documents/Parental-leave-and-gender-equality.pdf

 

Ethical Issues Facing UBER

Introduction
This report deals with UBER’s company profile, ethical dilemmas or issues facing the company and suggestions or recommendations from how to overcome these issues. This report also deals with how the company is becoming a safety hazard for the society, despite the increase in demand for their services as well as the accusations it is facing from all sides of society.

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 “UBER Technologies Inc. is an American multinational online transportation network company headquartered in San Francisco, California. It develops markets and operates the UBER mobile app, which allows consumers with Smartphone’s to submit a trip request which is then routed to UBER drivers who use their own cars. As of May 28, 2015, the service was available in 58 countries and 300 cities worldwide. Since UBER’s launch, several other companies have copied its business model, a trend that has come to be referred to as “UBERification”.”[1]
Despite its increase in demand for the services, UBER is facing many law suits and protests all over the world. UBER has been avoiding its responsibility towards society by neglecting its code of conduct and ethical code by participating in unethical practices. Its main goal is to expand and increase its market share and ignoring its corporate responsibility.
UBER has been subjected to many law suits and ethical issues. The following are few of the ethical issues which are highlighted:
Ethical issues
Passenger Safety:
According to New York Times, many UBER drivers have been convicted with sexual harassment and sexually assaulting of the passengers.  One of the reasons for this is improper background checks of the UBER drivers. Also, there are no proper set criteria for the requirements to become a driver and for the vehicle to be used by drivers. Many cases have been filled against UBER drivers involving in unethical practices such as sexual harassment, rapes and sexual assaults and so on with the passengers.  Other cases against drunk drivers driving UBER and misbehaving with passengers have also been registered in recent times. Some of the recent incidents are as following:

A passenger in Chicago accused an UBER driver of sexually assaulting her.
In Jan 2016, another case was filed in Chicago where an UBER driver was arrested for being suspect of kidnapping a drunken passenger and then taking her to a hotel for sexual assault.
In London, a case had been registered against a UBER driver who sexually harassed a woman and ask her to perform oral sex.

Security of Drivers:
Recently many cases have been filed against the security of UBER’s drivers from passengers which include beating up of drivers, misbehaving with drivers and assaults of drivers etc. UBER is not taking proper actions for the security of its drivers. Many times, an UBER driver’s vehicle has been damaged by passengers but no proper responsibility has been taken by UBER for the protection of drivers. Some of the recent incidents relating to this are:

On Nov 3, 2015, a drunken passenger in California assaults UBER driver over the weekend. Although the passenger lost his job as corporate manager at Taco Bell after the video was publicly released, UBER did not take any action to stop this kind of incident.
Another recent incident happened on Jan 1, 2016 in Miami, when a Doctor in Florida aggressively attacked UBER driver. Some recorded the video of the incident and video got viral. Doctor was placed on administrative leave from hospital but nothing has been done from UBER’s side.

Privacy
Recently, UBER has been accused of keeping track of their customers with the help of smart phone app. The tracking system which the company is using to keep a track on its customers is called as ‘God View’, with which they can access the customer’s contacts and send an advertisement about their services. One can argue that the people are monitored by police departments too. But there is a moral difference. Police departments keep on track in order to maintain peace in the society whereas UBER is trying to expand its market range or business interests.
In June 2015, EPIC (Electronic Privacy Information Center), a non-profit organization headquartered at Washington D.C filed an official complaint on UBER about its misuse of customer’s privacy terms.[2] 
Recruitment and Unethical Conduct of Employees:
UBER is accused of following unethical recruitment and unethical behavior of its employees. UBER has hired some employees as brand ambassadors and provided them with credit cards in order to create a duplicate account with its competitors and to lure their drivers. This program is termed as SLOG (Supplying Long-term Operations Growth) by UBER.[3]
UBER has also been accused of unethical behavior of its employees. In UBER, employees are encouraged to book the competitor services and cancel the order once they get the confirmation for the ride. The main competitor Lyft which is identifiable with pink mustaches has released information that the UBER employees have booked and cancelled approximately 5000 rides in time range of few months. Here the competitor has to face double losses of less number of customers and unnecessary expenses on going to the pick-up, place only to turn back with no customer. Here the question of unethical behavior as well as violation of fair competition laws arises.[4]
Unethical leadership at UBER:
First, CEO of UBER, Travis Kalanick admits to trying to torpedo funding efforts of his biggest rival, Lyft. He was also quoted admitting that his company tried to talk investors out of raising money for Lyft. Second, CEO Kalanick has also referred to his company as “Boob-er” by which he meant that running UBER has helped him meet girls.
Bloomberg was quoted by talking about the CEO as “He can behave, gleefully, like a feral frat boy dreamed up by Ayn Rand; his mission statement runs to some variation of “you know, push a button and get around San Francisco like ballers.”[5] Finally I would like to conclude by saying that if ethics start at the top, then tone at the top certainly matters a great deal. Kalanick clearly needs some help with what it means to be an ethical leader, setting an example for his growing empire.
UBER Poaching Competitor’s Drivers:
“Independent contractors for UBER apparently use burner phones tied to dummy accounts, with instructions to vary the locations from which they order car rides from their main competitor, Lyft. Once in the car, the contractors apparently try to figure out whether drivers can be persuaded to switch loyalties to UBER, and in some markets can apparently offer them a sign-up kit on the spot. The latest documents shed new light on practices that Lyft has been complaining about it for some time, including in a CNN Money report this month in which the company claimed that 177 UBER workers had ordered and canceled more than 5,000 rides. That and other reports have framed those canceled rides as a form of sabotage. If someone orders a ride and then cancels it, it costs the driver the time, money and aggravation of going to the pick-up location to meet a rider who isn’t there.”[6]
Recommendations:
Passenger’s Safety
As there are dozens of law suits filled over UBER’s passenger safety regarding the number of sexual harassments attempts over the passengers higher authorities in UBER should think of installing a new app that once opened in the time of emergency during any assaults in the transit time that will send calls and messages directly to the police control room or the any five relatives or the friends of the passengers as a signal of some assaults taking place at that very time.
Security of Drivers
Lots of incidents have been reported about assaults over drivers like beating up of drivers, abusing and misbehaving etc. However the company failed to take any measure to ensure the security of the drivers. UBER should take necessary actions for the assaults happening over the drivers like they should ask the driver to install security cameras and a disclaimer is sent via messages to the customers when they book rides saying “we value our customers, Assaults are public offenses, Violators will be prosecuted” and in case something wrong happens with the drivers UBER should take strict actions.
Privacy Issues
Firstly, There should be certain laws over the UBER so that the company is limited to the type of data that it collects for example payment information which is required by the company as a part of travel information but beyond these categories the company should be able to show or prove rights and reasonable comments over the collection of personal data.
Secondly, UBER is required to delete all the records of the customer that it requires at the time customers uses the UBER services. For obvious reasons that once the ride is completed it should delete the customer’s information.
UBER should really hire third party associates in order to verify the driver’s background check in order to ensure that further there are no more assaults from the drivers over the customers.
Unethical conduct of employees
For UBER to sustain for longer term and to be in the competition they should think of practicing and implementing new strategies to increase the business not by making fake accounts and to order fake rides from other competitors to decrease their business to make their own business more profitable. Such steps could be very harmful for long term business of a company as these cases will increase the business risk in terms of customer’s royalty.   
References
http://wtnh.com/2016/01/22/florida-UBER-driver-attack-caught-on-camera/
http://www.cbsnews.com/news/after-attacking-UBER-driver-passenger-sues-him-for-5m/
http://www.cbsnews.com/news/the-rising-safety-issues-that-could-throttle-UBER/
http://www.msnbc.com/msnbc/the-complicated-politics-UBER
http://money.cnn.com/2014/11/21/technology/UBER-ethics-oped/
http://money.cnn.com/2014/11/18/technology/UBER-unethical-peter-thiel/
http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/UBER_Rising_Valuations_Amidst_Ethical_Woes-Excerpts.htm
http://www.consciouscompanymagazine.com/blogs/press/22766337-the-missing-link-at-UBER-ethics-innovation-conscious-capitalism
https://www.tnwinc.com/9334/UBER-needs-business-ethics-training/
http://www.corpwatch.org/article.php?id=16035

[1] https://en.wikipedia.org/wiki/UBER_(company)
[2] http://www.corpwatch.org/article.php?id=16035
[3]http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/UBER_Rising_Valuations_Amidst_Ethical_Woes-Excerpts.htm
[4] https://www.tnwinc.com/9334/UBER-needs-business-ethics-training/
[5] http://www.ethical-leadership.co.uk/UBER/
[6] http://www.nytimes.com/2014/08/28/upshot/UBERs-secret-agents-was-poaching-from-lyft-unethical.html?_r=0
 

Is China Facing a Financial Crisis?

In a first for Chinese Banks and its Big Four, the Industrial and Commercial Bank of China (ICBC) unseated Exxon Mobil last year to take the top spot on the Forbes Global 2000[i] as the world’s largest company. China Construction Bank moved up 11 spots to No. 2 on the list. Agricultural Bank of China stood at No. 8 and Bank of China with its double digit growth in sales and profits; improved its ranking by 10 places to No. 11[ii]. However what is more interesting is that ICBC, world’s largest and most profitable bank itself was on the verge of defaulting until a last minute decision to bail it out earlier in January this year. A 3 Billion Yuan (around $500 million) product issued by China Credit Trust Co., a shadow bank and marketed through ICBC was underpinned by a loan to a mining operation of Shanxi Zhenfu Energy Group that later collapsed as the price of coal plummeted. Investors were promised a hefty 10% annual return over three years, but were told in January not to expect payment. Some of the investors, who reportedly put as much as $500,000 each into the fund, said ICBC should reimburse them since it had marketed the product. ICBC insisted that it had never guaranteed the product, and had no legal responsibility to pay investors. The bank’s chairman even went so far as to describe the episode as a learning opportunity for investors, shadow banks and ICBC. However the learning opportunity was missed, thanks to a bailout by an unnamed third party that ensured investors will recover their initial investment, though interest will not be paid[iii].

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Shadow Banking in China comprises of a web of non-banks that includes pawn shops, underground banks, various wealth management products, trust companies, and guarantors – many of which don’t take deposits to insure against risky lending activities and operate completely beyond the eye of regulators and authorities.These firms offer loans to companies or individuals that may have trouble securing traditional bank financing. Often, the loans are then packaged and sold to investors looking for higher returns. In China, the sector’s exact reach is unknown, but some estimates put its size at roughly 60% of China’s GDP[iv]. The China Banking Regulating Commission (CBRC) caps the value of loans that banks can extend relative to the value of deposits at 75%. Because of this cap, banks prefer to issue off-balance sheet loans in order to maintain lower loan-to-deposit ratios (LDRs).While the latest estimates for lending from China’s biggest banks put February 14’s new loans at 800 Billion Yuan, the highest February figure since the 4 Trillion Yuan stimulus in 2009, reports are emerging that the strength in new loans is not driven by real demand, but rather by banks moving off-balance sheet loans on to the balance sheet as part of the government’s broader crackdown on shadow banking[v]. It is one of the many indicators that signify the slowdown of Chinese economy.
In 2012, there were two trust defaults, one for a product distributed by Huaxia BankLtd. and one sold by CITIC Trust. While it was learned thatZhongfa Industrial Groupin the end guaranteed the first, the solution to the second was never made public[vi]. Beijing knows that a default could prompt investors to pull theirmoneyfrom other trust products and stop providing the deposits needed to supply credit and fuel economic growth. A default would likely lead to a loss of confidence in China’s trust and other shadow credit markets and a shrinkage of liquidity in those markets, and hence, a credit crunch. Some analysts however argue that a default is needed to demonstrate Beijing’s commitment to allow market forces to play a larger role in the economy, and to send a message to investors that high-yield investments carry significant risk. The China Banking Regulatory Commission said non-performing loans (NPLs) made by Chinese lenders reached 592 Billion Yuan in the final three months of last year. The last NPLs were at the same level was September 2008, the month when US investment bank Lehman Brothers collapsed. Loans by Chinese lenders have grown at an unprecedented rate in the past five years, with banks increasing the size of their balance sheets by 89 Trillion Yuan, an amount roughly equivalent to the size of the entire US banking industry[vii].
Chinese non-financial companies held total outstanding bank borrowing and bond debt of about $12 trillion at the end of last year – equal to over 120 percent of GDP – according to Standard & Poor’s estimates[viii]. Trust companies along with other non-bank financial institutions such as securities brokerages have become a vital source of credit, allowing banks to arrange off-balance-sheet refinancing for maturing loans that risky borrowers such as the local government financing vehicles (LGFV) cannot repay from their internal cash flow. By law, China’s local governments are not allowed to borrow. After the 2008 global financial crisis, Beijing conceded some relaxations and local governments created LGFV (Local Government Financing Vehicles), also known as UDICs (Urban Development and Investment Companies), which though separate from but owned or controlled by the local government, were permitted to borrow. The LGFV generally borrowed funds predominantly from banks (as much as 80% or more), with the remainder raised by issuing bonds or equity-like instruments to insurance companies, institutional investors and individuals. Recently, with pressure on banks to curtail loans, these financing vehicles have borrowed from China’s shadow banking system. Audits released for the first time show that China’s wealthiest eastern provinces are the most indebted, though repayment burdens are more onerous in poorer areas such as the southwestern provinces. Tibet was the only region that did not release an audit report[ix].
According to statistics from the National Audit Office, as of June 2013 government debt at all levels totaled about 20.7 Trillion Yuan (US$3.4 trillion), of which domestic government debt accounted for around 10.9 Trillion Yuan (US$1.8 trillion). Of this amount, 2.39 Trillion Yuan (US$390 billion), or 22%, is due in spring of this year[x]. We can add that including the local government debt that matures this year, there is an estimated 5 Trillion Yuan of trust products that are maturing, including as much as 1 Trillion Yuan in May[xi]. If the China Credit Trust product was allowed to default, China’s financial system might have been sitting on hundreds of billions, if not trillions of Yuan worth of non-performing loans in just a few months time. Chinacan rarely allow corporate failures, particularly of state-backed companies, partly out of fear that widespread layoffs could lead to social unrest. All this makes things all the tougher for the People’s Bank of China especially when interbank rates are at an all time high to control the local debt. Further the rising Chinese Yuan, which has gained around 33% since 2005 against the U.S. currency, increases their returns has led to asurge in loans to Chinese companies from outside the country has contributed to big inflows of cash into the mainland (mainly short-term and speculative in nature), trying to profit from the mainland’s relatively highinterest rates[xii].
Hence when the more the PBOC pumps into the system, the more it encourages risky lending, pushing the country closer to a debt crisis. But when the central bank has declined to add cash to the system—notably in June and December of 2013—liquidity has seized up. The scale of trust assets however still pales in comparison to total banking sector assets of more than 100 TrillionYuanas of the end of June. But without trusts, the banking system’s non-performing loans (NPL) ratio might be much higher, although accurate estimates are not possible[xiii]. China bears argue that a vast majority of the trust loans cannot be repaid, which will eventually require substantial bailouts and lead to a collapse in the banking system and a larger economic crisis. Even if this is exaggerated and the assets are good, huge liquidity risks exist given the known mismatch between the duration of trust loans and their underlying investments.

[i] The Forbes Global 2000 are public companies with the top composite scores based on their rankings for sales, profits, assets and market value.
[ii] Forbes: The World’s Biggest Companies at http://www.forbes.com/sites/scottdecarlo/2013/04/17/the-worlds-biggest-companies-2/
[iii] Charles Riley, “China’s $500 million shadow bank rescue”, January 28, 2014 at http://money.cnn.com/2014/01/28/investing/china-icbc-default/
[iv] ibid
[v] Oliver Barron, “Latest Developments for China’s Shadow Banking and its Implications for RMB”, February 26, 2014 at http://www.forbes.com/sites/oliverbarron/2014/02/26/latest-developments-for-chinas-shadow-banking-and-its-implications-for-rmb/
[vi] Oliver Barron, “China Trust Default Avoided… What Comes Next?”, January 27, 2014 at http://www.forbes.com/sites/oliverbarron/2014/01/27/china-trust-default-avoided-what-comes-next/
[vii] Harry Wilson, “Chinese bank bad debts hit crisis level high”, February 14, 2014 at http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10638811/Chinese-bank-bad-debts-hit-crisis-level-high.html
[viii] Matthew Miller and Umesh Desai, “China’s $12 trillion corporate debt pushes up refunding costs, drives mergers”, February 25, 2014 at http://www.reuters.com/article/2014/02/26/us-china-debt-companies-idUSBREA1P06420140226
[ix] “China details $3-trillion local public debt risk”, January 27, 2014 at http://www.reuters.com/article/2014/01/27/us-china-economy-debt-idUSBREA0Q0LA20140127
[x] “RMB350bn in local government debt up for repayment”, February 27, 2014 at http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140227000050&cid=1202
[xi] Oliver Barron, “China Trust Default Avoided… What Comes Next?”, January 27, 2014 at http://www.forbes.com/sites/oliverbarron/2014/01/27/china-trust-default-avoided-what-comes-next/
[xii] Enda Curran and Prudence Ho, “Concern Over Hong Kong Banks’ Growing Lending into China”, February 27, 2014 at http://www.marketwatch.com/story/concern-over-hong-kong-lending-to-china-2014-02-27-124492221
[xiii] Gabriel Wildau and Lu Jianxin, “Growth in China trust assets slows as shadow banking crackdown bites”, August 6, 2013 at http://in.reuters.com/article/2013/08/06/us-china-economy-trust-idUSBRE97504Q20130806