Types of Business Activity

The Coca Cola Company is a global company that makes soft drinks. It is most known for producing the soft drink Coca Cola. The company claims that the drink is sold in more than 200 countries and is produced in Atlanta, Georgia. It was originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton; Coca Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.The Coca Cola Company is a public organisation that’s sole aim is to provide a quality soft drink to consumers and to maximise profits while doing this. The company is in the secondary sector of business as it only sells a product, this being soft drinks.
Business Purposes Coca Cola exists because at the time there was a gap in the market for soft drinks. Today Coca Cola is the most successful soft drinks manufacturer in the world and they make a lot of profit. A profit organisation is a company such as Coca Cola. A non-profit organisation is an organisation such as the NHS.The main reason for this is because both organisations have different reasons for the business, so therefore different objectives. Some companies may choose to make a loss on certain products, this is initially because they want to get new customers to try there product, they make sure the price is really cheap so the customers will purchase it and try it, and once the customers have tried it they will then bump their prices back up to make a profit. The NHS for example makes a loss so that everyone can afford health care because they want to provide a service.
The NHS also will pay private health care organisations such as BUPA to take some patients away from them to reduce waiting time so customers are happier with the service provided. Coca Cola supply their products through other companies, they sell their products to them and that’s how they make their profit. They also have vending machines that are stocked up by Coca Cola themselves. Owners Coca Cola Coca Cola is a public limited company which means that it is permitted to offer its shares to the public.This means shares are sold on the stock market, and if stock increases then the value of the stock also increases so the public make profit. NHS The NHS is part of a government department funded by taxpayer’s money. This therefore means everyone in the country can get healthcare for free.

Stakeholders Stakeholders are anyone that has an interest in the business, for example at a local college a stakeholder could be a local resident who lives near the college. They could be affected if litter from the college is outside their house.Other stakeholders such as customers interested in purchasing clothes from a shop want to maximise quality on the clothes but don’t want to pay too much. Another stakeholder could be an employee, they want to maximise their salary but want job security. Coca Cola Customers are stakeholders of Coca Cola as they purchase the product with the intent to be satisfied with the quality of it and to fulfil the needs of the customer and to be rewarded with special offers etc. They also don’t want to pay too much for it but still want a high quality product and finally good customer service and want to be rewarded for their loyalty.NHS My second organisation is the NHS.
The customers of the NHS want high quality healthcare but not to pay too much for it through their taxes. They also want the hospital to be fairly close to them. Coca Cola Employees are another stakeholder as they are employed by Coca Cola to either create the product, market or distribute the product. While doing this they want to be paid very well, have flexible working hours, job security, chance of promotion, have a good amount of holiday, get sick pay and get some sort of health care.Another point is that employees want to work for ethical organisations; this means that they feel that the company works in the right way and does not exploit anyone. NHS The employees who work for the NHS are also stakeholders and like Coca Cola want to be paid well, have flexible hours and to have job security. Coca Cola Suppliers are affected by they want to purchase the product in bulk for the intent to sell onto customers for a profit, so originally they want to purchase the product for as little as possible so they can make a bigger profit when they sell it onto the customers.
The supplier also wants the company they are giving to, to be successful, the reason for this is because the more successful they are then they are going to come back to purchase more products. The size of the supplier and the company can matter as well. The reason for this is because if the supplier is bigger than the company they can dictate how much they want to sell the product for etc, where as if the company is bigger than the supplier then they can have more of a say for how much they want to purchase the product. NHSThe suppliers who give the NHS equipment and drugs etc want to be paid well for the products they are selling to the NHS and to make sure they stay faithful by continuing to purchase products from them Coca Cola The owners of the company have a say in what they think the company be doing and how they want it to be run, they have lots of authority and want their company to be as successful as possible while making a huge profit. They also want to increase their reputation and also increase their market share, as their looking at the bigger picture, so in the future they are likely to be more financially secure and increase profits.The owner also wants to take control of as many shares as possible and make sure the shares are worth as much as they can be. NHS The owners of the NHS want to make sure that the service being given out is high quality healthcare and advice and making sure customers are happy with the service provided.
Coca Cola Pressure groups are groups that are external to the business and are set up because they have an issue with something the company is doing.Pressure groups may decide to protest against Coca Cola because they believe it is unhealthy and is aimed at parent’s children and that is making them unhealthy, or maybe in less developed countries the water they are using to make the product is mostly being used for their product and the people need the water to survive. These people will protest against the company because of their beliefs, values and opinions. NHS Pressure groups that are affected by the NHS are groups that think the ervice is poor and maybe they aren’t happy with how they were treated by the service. They may also protest because of waiting times and waiting lists. Coca Cola Trade unions represent the workers of a business. The reason for this is so they can look out for them and bring up any issues that the workers have with the company.
These issues can be anything from salary, benefits, holiday, how they are treated, sick pay or if jobs are at stake and some people may be made redundant then the workers may decide to strike and the trade union will look after them.NHS Trade Unions represent the workers of the NHS, so this is the doctors, nurses etc. The reason for this is so they can look out for them and bring up any issues that the workers have with the company. These issues can be anything from salary, benefits, holiday, how they are treated, and sick pay or if jobs are at stake and some people may be made redundant then the workers may decide to strike and the trade union will look after them Coca Cola Employee associations are used for firms and represent different organisations.Employee associations represent a handful of firms instead of just one because for example when the government got tough on labelling for food and drinks this affected Coca Cola and they would be represented by the association so any issues they had with the new labelling they could tell the association and it would get passed on. Coca Cola Local and national communities are affected by Coca Cola as if Coca Cola were to market a new product in their area with a new billboard or poster on a bus shelter this would affect everyone that lived around it. NHSLocal and national communities could be affected by the NHS as say the NHS decided to build a new hospital nearby a local village this therefore would affect everyone that lived their as the village would get considerably busier, leading to more traffic, people etc.
Coca Cola The Government is also a stakeholder in Coca Cola as they can put in place certain rules that the company must keep to. For example years ago Coca Cola wouldn’t have had to put how much sugar, salt, fat, calories and saturates were in a can of their product but the government decided to have an input and now they have to.The government also wants to increase jobs available for the public. NHS The government owns the NHS and therefore has a huge input with how things are run and making sure everything goes to plan. Coca Cola Links and interdependencies is links within a business. Your supplier and owners are linked as they want it to be successful so they can make profit. NHS Links and interdependencies is links within a business.
Your supplier and owners are linked as they want it to be successful so they can make profit. I love men


Business Project

Mike Wardingley Define the term “the learning organization. ”  In what ways can the principles of the learning organization strategically impact an organization? A learning organization is one that: -Seeks to create its own future. -Assumes learning is an ongoing and creative process for its members. -Develops, adapts and transforms itself in response to the needs and aspirations of people, both inside and outside itself. – Allows people at all levels, individually and collectively, to continually increasing their capacity to produce results they really care about.
A company that cares about development and their future will be a learning organization. Wide profit margins are great but a great company will not only worry about the bottom line, but the personal and professional development of their employees as well. An atmosphere of learning and improvement will also help spurn new and improved processes. Google has become a company that allows the employees to continually improve and fosters creative thinking. The work environment is relaxed and the perks allow the employees to be free thinkers.
Companies that put effort and money into the development of their employees will see a much bigger return in the end. Tuition assistance, college loan repayment programs, and during work learning opportunities will keep the employees happy as well as constantly developing into more educated and productive workers. Using the Internet, research the Small Business Administration’s website (www. sba. gov). What different types of financing are available to small firms? Besides financing, what other programs are available to support the growth and development of small businesses?

The types of financing that are available to new small businesses are: * Loans * Grants * Bonds * Venture Capital In addition to the financing options, the Small Business Administration has set up a large number of other forms of assistance to make sure a new business has all the tools necessary to succeed. There is an online training program that will help an owner with starting, managing, financing, and contracting the new business venture. The Small Business Administration has also developed programs to help other types of new business owners.
The Women’s Business Center was set up to help women start and maintain a successful business. The Veteran’s Business Center was created to help US Military veterans start a new fresh start after leaving military service. The US Export Assistance Center was established to help small businesses with the difficult task of beginning new exports to other countries. This difficult process is tough but made much easier with the help of the SBA. The SBA is a free resource that can help you develop a new business plan and then make a move to start your business and set you up for success.
Define the term “emotional intelligence (EI). ”  What are the key elements of EI? Why is so important to successful strategic leadership? Emotional Intelligence (EI) is the capacity to reason about emotions, and of emotions to enhance thinking. It includes the abilities to accurately perceive emotions, to access and generate emotions so as to assist thought, to understand emotions and emotional knowledge, and to reflectively regulate emotions so as to promote emotional and intellectual growth.
The four key elements are: 1. Self Awareness 2. Self Management 3. Social Awareness 4. Relationship Management A good manager knows not only who he/she is, but also who each one of their employees is as well. Not just that they have a wife and 2 kids, but knows about what makes them who they are. The likes/dislikes, the personality, the past, and the future goals should be vitally important. This is key to making sure the work center is productive and free of hostility.
While opinions will differ, too much dissention and strife can kill not only office camaraderie but production as well. Fostering healthy work relationships can also ensure that office cohesiveness stays on track. While the consequences of unhealthy relationships can be very costly, developing good and healthy relationships with employees can pay off in the end. Knowing each employee on a personal basis can help you better know how to interact with each employee and get the most productivity in return.


Current business

Malaysia, being a trading nation that highly dependent on international trade, our economic performance Is very vulnerable to the performance of our major international trading partners. For decades, our economic growth has been overly reliant on external sector developments, foreign direct investment (FAD) and international trade. Domestic investment decisions are not base on economic fundamentals but rather these decisions are very much Influenced by the market behavior of foreign Investors. In view of the challenges arise from the globalization effects, it is important for the
Government to sustain growth and strengthen the macro-economic fundamentals within the country. This Is done by focusing on domestic business and Industrial activities and increasing the purchasing power of our population. The government’s fiscal policies and corporate reforms have to be continued to create a condition suitable for a speedy recovery and sustainable growth. It is also important to ensure that the restructured loans remain performing. Emphasis must be placed on continuing improvements on corporate governance, transparency, accountability and strict enforcement of powers by the market regulators.
There is also a need for the entry to maintain its peaceful environment and security in order to secure the Investors’ confidence. Currently, the final destination for most of Malaysian exports is the United States. Therefore, the successful recovery of the US economy is pivotal to Malaysia’s continuing recovery. The current stagnation In the US economy, especially in the electronic chip industry, Is a damper on economic recovery In Malaysia where electronics related exports make up more than 30% of the gross domestic product.

With the American demand looking weak, we must look for alternative areas of growth and demand to Increase the economic resilience. The emergence of China With China rising at such rapid rate, this means that the mid-sized economies of Sean (such as Malaysia) will have to run faster! Data has shown that China Is taking away global market share, employment and foreign direct Investment from Sean, with no exception to Malaysia: “h Between 1995 iv 2001, China’s share of world clothing exports rose to 18. 3% from 15. 3%. Shares of Malaysia, Indonesia and Philippines have all shrank. OFF exports to the world’s largest consumer, the United States. “h A report from Japan’s Research’s Institute of Economics Trade and Industry shows hat China competes with Sean for 100% of exports from Southeast Asia. “h In 2000, China captured 89% of FAD entering the Sean-China region compared with 63% between 1989 and 1994. “H Southeast Asia received $millions from China, whereas China received $millions investment from Southeast Asia in year 2000. “H From nowhere, China has come up as the 4th largest furniture producer in the world.
With all these facts, even developed-country, such as Japan, is taking this awakening dragon seriously. The Japanese are now considering how to fit China into their plans, rather than to compete against them. To the Japanese, China has dual allure: it is a place to make things and a place to sell things. China, with its vast population that supplies abundance labor and mass-market opportunities, has certainly poses a certain level of threat to some Malaysian companies, especially those in the labor-intensive industries.
We may overcome this threat by attracting regional offices and retaining existing foreign direct investments. Also, foreign multinational companies manage their investment risk by organizing their operations using the “China + 1” concept. It is certainly a challenge to ensure hat Malaysia be considered as the other destination. Implementation of AFT With the implementation of Aft at the beginning of the year, it has changed the competitive landscape for most Malaysian.
Tariffs on a wide range of products have been drastically reduced and Sean manufacturers have to be factored into competitive analysis. The liberalizing of the market place permeates more innovative tax-based deals, structured characterization and the use of derivatives. Hence, the start of Aft would see an influx of foreign suppliers offering “price competitive” products to the Malaysian market due to the reduction in import tariff. This will greatly increased the prospect of competition, especially when bigger producers from Thailand and Indonesia enter the markets.
Due to the bigger populations of these countries, the foreign competitors enjoy a greater degree of economies of scale and lower unit costs. Removal of protective tariffs will require local players to be more efficient and strategies, restructure, build alliances and re-position themselves for survival. This would require the companies to increase competitiveness, to reduce production cost o a competitive level and to produce superior quality products, which will be difficult to surpass.


How Can an Understanding of Non Verbal Communication Make Business Communication More Effective

How can an understanding of non verbal communication make business communication more effective? Introduction Communication is not just about words.
It can be shown in many ways such as speech, songs, words and also non-verbal such as body language, sign language, paralanguage, touch, eye contact, body movements etc. Therefore it is like everything in day today life. Communication is more important for people to express their feelings, ideas and etc. A sender, a message and a recipient is needed to have a proper communication.Definitions Communication – is defined as a process by which we assign and convey meaning in an attempt to create share understanding. This process requires a vast repertoire of skills in intrapersonal and interpersonal processing, listening, observing, speaking, questioning, analyzing and evaluating. Non verbal communication – Exchanging ideas through our body language and also it includes facial expressions, gestures, body movements and etc.
The main components of Non verbal communicationNonverbal communication is a system consisting of the components of Kinesics, proxemics and paralanguage which are often used together to help expression. Kinesics Kinesics or body language is one of the most powerful ways that humans can communicate nonverbally. It is used to portray moods and emotions and to emphasize what is being said. Body language is very important when in an interview. “To effectively communicate it’s not always what you say, but what your body says, that makes the difference” (Patricia Ball) This shows what exactly body language means.There are various different types of body movements one can do to come across as being too strong or too weak. For example – when one first walks into the room and shakes hands with the interviewer you want to have a good eye contact as well as good firm hand shake.

Not too strong, because you can come across as being power player. Another important aspect to remember when you are on an interview that is to mirror your interviewer, but not to the point that you over do it. For Example – if the person that is giving you the interview crosses his/her arms that you can cross your arms.If he/she crosses their feet then you should cross your feet, but do it gradually. The last 2 things to remember is when you first walk into the office do not cross anything unless the person that is doing the interviewing crosses his or hers first. Next when you are sitting down be relaxed as possible by opening your suit jacket. This shows the person that you are not tensed.
The other aspect to remember is to lean forward in your chair, but not to close where you are in the individuals face.If you sit back in your chair you might be sending off signals, such as aloofness or rejection. Finally, nonverbal communication can also be an effective sale when executives learn to read a cliet’s body language. Proxemics One of the terms used in non-verbal language is proxemics. Edward Hall difined it in 1050’s when he invenstigared man’s use of personal space in contrast with fixed and semi – fixed feature space. Fixed feature is what it is fixed has in unmovable boundaries. Semi-fixed is fixed boundaries that can be moved like furniture.
Proxemics can be divided in 2 other ways, physical and personal territory. Physical territory is like desks that are in front of the room of a classroom instead of center. An Example of the proxemic concept is that of stepping behind the desk of an associate at work and invading the personal zone. But what if it is the boss; do you have the authority? If it’s a co-worker you probably do. A workplace where you sit is a primary tool in establishing certain communications and is his or her freedom to place that desk where and how it is a key element in personal considerations.The cubicles don’t offer the chance to allow the worker to rearrange the furniture to his or her preference, nor do they allow visitors. Extra room or the ability to move furniture in an office are both symbols of status.
Paralanguage It refers to the non-verbal elements of communication used to modify meaning and convey emotion. Paralanguage may be expressed consciously or unconsciously, and it includes the pitch, volume, and, in some cases, intonation of speech. Sometimes the definition is restricted to vocally-produced sounds. The study of paralanguage is known as paralinguistics.How does nonverbal communication help us in the business environment? Nonverbal communication in a business setting requires not only recognition of these above elements, but confidence in meeting their challenges. The non-verbal message will always be more a more accurate representation of the person’s feelings, attitudes or beliefs. An easy way to determine what someone is thinking or feeling is to observe whether their signals are open or closed.
Open signals represent openness, acceptance, willingness, enthusiasm, and approval. Closed signals represent the opposite of all of these.Closed signals are crossed legs, arms, hands. A lack of eye contact, rigid posture, leaning away from you, and the hands on top of the head are also examples of closed signals. Open signals are exactly what they imply: open hands, uncrossed legs, eye contact, leaning forward, and so on. There are thousands of ways we communicate non-verbally. Most of us, when talking with our friends, use our hands and face to help us describe an event or object – powerful nonverbal aids.
We wave our arms about, turn our hands this way and that, roll our eyes, raise our eyebrows, and smile or frown.Yet many of us also, when presenting to others in a more formal setting, ‘clam up’. Our audience of friends is no different from our business audience — they all rely on our face and hands (and sometimes legs, feet and other parts of us! ) to ‘see’ the bigger, fuller picture. It is totally understandable that our nervousness can cause us to ‘freeze up’, but is is in our and our communication’s best interests if we manage that nervousness, manage our fear of public speaking, and use our body to help emphasise our point. As part of man’s genetic heritage we are programmed to pay attention to movement.We instantly notice it, whether we want to or not, assessing the movement for any hint of a threat to us. But to get back to the stage and you on it.
.. ensure that any movement you make is meaningful and not just nervous fidgetting, like rocking back and forth on your heels or moving two steps forward and back, or side to side. This is ‘nervous movement’ and your nervousness will transmit itself to your audience, significantly diluting the potency of your communication and message. Conclusion. As in conclusion nonverbal communication is much more important when it comes to business field.Eye contact, Gestures, Movement, Posture and written communication very much needed to deal with business.
Therefore nonverbal communication to business is an outstanding need. Nonverbal communication in a business setting requires not only recognition of these elements, but confidence in meeting their challenges.References 1. “Intercultural business communication” By Robert Gibson 2. www. wikipedia. org 3.
http://www. 1000ventures. com/business_guide/crosscuttings/biz_communication_main. html 4. www. k12. wa.
us 5. http://ezinearticles. com/? Nonverbal-Communication-in-Business;amp;id=5406


Business Report on Executive Support Systems

Executive Support System (ESS) serves in a very strategic level of an organization. They look into the issues that are not planned for in the society and try to get workable solutions. They are required to judge and appraise and then decide on the approaches into the solutions because there usually is no agreed-upon-procedure to do those things. ESS makes a widespread computing and interactions environment relatively than providing any fixed application or specific capability.
ESS is intended to slot in data about exterior dealings such as new tax laws or competitors, but they also draw summarized information from internal MIS and DSS. They sieve, condense, and track serious data, emphasizing the diminution of time and effort required to obtain information useful to executives (Yang, E. & Gregor, P. 2002).

The ESS is usually designed to deal with general computing and communication issues of an organization. Their decisions are supposed to be so dynamic such that they have to carter for future changes.
An Executive Support System (ESS) is computer software that facilitates the organization of data or pieces of information into useful summarized reports. It is planned to make smooth the growth of, and support the information and decision making needs of an organization. Through the organization of data by this system, the company’s internal and external reports become easily accessible hence quicken the process of meeting of the company’s goals.
There are different kinds of systems because there are different interests, specialties and levels in any given organization. This is the reason there are different types of diagrams of Executive support systems. However, no single system can provide all the information an organization needs. Due to this, there are different diagrams too.
How ESS fits the IS framework
The figure below shows the position of the Executive Support System I an organization and the way it fits in the organization’s Information System:
For proper functioning of the ESS, it should fit within the Information System framework. It handles information at the strategic planning level of an organization. It is purposefully designed to handle the process of making decisions that are in no pre-set routine by use of graphics that are advanced integrated with other forms of communication.
At management level, the ESS is connected to management information systems (MIS) together with DSS (Decision Support Systems). It is at this level where information system for an organization integrates complicated models for data and information analysis with data and information for the purpose of supporting the process of making non- routine decisions involved in ESS (José, L. and Antonio, L. 2003).
Lughi, M, Loreti, P, David, F (2002) argue that at the knowledge level, two systems namely Office Systems (OS) and Knowledge Work Systems (KWS) are useful (pp.65-66). They assist workers in generating and integrating newly acquired business ideas and knowledge in the company. They both serve the organizational need of knowledge this level according to the systems framework illustrated above. The difference between the two is that systems Knowledge Work assists employees who work at the knowledge level of the business while office systems assist employees who have the responsibility of handling the company data, despite recording extensive use a by knowledge employees.
Their major tasks include creation of new knowledge and information useful for running the company. KWS such as designing engineering works or scientific innovations contribute very much in the process of creating new knowledge and ensures that new technological ideas and expertise are successfully integrated in to the business processes of the company.
On the other hand, data workers have less formal duties, posses advanced educational qualifications such as post graduate degrees and they characteristically process data rather than creating data or information by themselves. They are for example company secretaries, accountants and book custodians, organizing file-keepers, managers whose key assignments are to utilize, alter, manipulate or disseminate information
Infrastructure for Executive Support Systems
Due to the advancement in technology, many businesses have computers. Majority of them use integrated application packages like Microsoft Office to do their record keeping. The use of Ms Access and MS Excel spreadsheets is the most common. Many of them are ignorant of the fact that these packages come with heavy programming language. This is referred to as Visual Basic for Application-VBA. It has a programming interface that is akin to that of Visual Basic. VBA offers greater chances in relation to being able to interact with the specific function of  a specific cell in a spreadsheet, but is quite inefficient because it lacks the ability to work with other applications for example in forms used to take in data (Salmeron, L. 2002).
Most senior managers have very little experience with complicated computer-based information systems. This is the reason why the web interface is the best for them because it is designed for ESS. It is an easy to use graphic interface.
The Input Processing and Output Activity
The activities that provide the information to an organization are Input, Processing and Output. Input entails of acquirement of the unrefined data, which is transformed into more meaningful information by ‘Processing’. The processed data now referred to as information is at this point accessed by the users and is called output.
Interdependencies of TPS, MIS, DSS, and ESS
The various systems described cannot work out well on their own means. They have great interdependencies upon one another. These interdependencies can be illustrated using the model shown below. Usually, data that is useful to other systems comes from the TPS. Essentially, the system levels that are below ESS supply it with data and information while systems that are below ESS may interchange information and data to one another.
Systems that are, meant to serve different areas may permit exchange of information as well. For instance the sales department and manufacturing department may exchange information or data contained in an order because the manufacturing section needs to know what kind of goods the clients need in the market, a duty which is essentially done by the sales department (Jose, L 2002).
From the illustration above, it is evident that the different kinds of systems in a business organization depend on one another directly or indirectly. Information comes mainly from the transactional processing systems and is relied to other systems directly or indirectly. The reliance of information from one system by another, which in absence would lead to no business, has made it a necessity to integrate the operations of the various business systems in most organizations.
The rationale for this measure is to allow free flow on critical information from its entry point to all parts of the organization. However, it should be noted that the process of integration demands use of money and is perceived as an expense from business point of view. It also consumes a lot of time and is simply a complex process. It is therefore advisable to the directors and managers of various departments at Bristol Communications Company to carry out some cost-benefit analysis of an integration process. This is meant to assist in establishing whether there is acute need for integrating systems in the company.
For an ESS to succeed or fail depends on the implementation process. The introduction the ESS in an organization is the implementation process. Implementation is administered both technologically and I terms of users (Michael, S 2007 pp. 44-67).
During implementation, it might be necessary that the prototype be changed so that the structure fits the needs of that particular organization. In the changing of the prototype, new hardware may be acquired so that it can be fully installed to serve its purpose well.
Automation procedures are strictly followed and the data for the suitability of the system double checked. This follows the designing of the ESS in readiness for use. After the system is designed, there is need to train those who are intended to use the system (Lim and Heinrichs 2005).
Three are those complications that arise during the development of a particular system. These sometimes do affect the success of the system while in use. In addition, the success of the system might be jeopardized by the position of the workers. The need for them to be informed as far as the use of the system is concerned might just be a difficult problem that can cause regressive ness in the success of the system (Pomerol and Adam 2002).
The implementation of the system should be free from any political influence. There is need for the system to be supported wholly especially during usage and it should be protected from any external influence that can make the process a failure (Heinrichs, J. 2005).
Human beings are usually stiff to change and they might want to stick to their old system instead of embracing the new system. This also needs careful handling.
During the development of the system, it should be completely separated from the business process. Any examination of the progress of the system should be assessed independently
Value of an ess to organization in connection to information surplus decision                       
An executive support system (ESS) also known as the executive information system (EIS) is a management tool that has been designed to address the needs of senior managers in an organization especially with respect to the process of making decisions. This tool works best at the strategic level of management. Since there is no clearly outlined procedure of reaching at a solution for any given problem even at top management level, the use of executive support system for a company assists the managers in making informed decisions that may require proper personal judgment, evaluation as well as an insight of the issue before a decision is arrived at.
Basically, ESS creates an environment that will permit general computing and relay of information instead of offering applications that are fixed or those which are of specific capability. By use of ESS, the mangers shall also be in a position to get summaries of information and data that is being used by the lower level systems such as the management information systems (MIS) and Decision support systems (DSS). The system shall allow the management filter, summarize or compress and track critical information/ data, thus being able to reduce the amount of time and energy they would otherwise use to obtain information that is useful to company executives (Michael, 2007).
One striking features of ESS is the advanced software that are employed. By use of the system, executives in Bristol Comm. Corporation would be able to use the information understanding aids that are part of the package. This includes the ability to plot graphs based on the available data instantly for use during a boardroom session or senior executives meeting (Yang and Gregor 2002).
One difference between ESS and other information systems is that, ESS is primarily designed not to solve particular problems but to provide general solutions to computing and passing information in the cases where array of problems occur. Most decision support systems are highly specific to the problems they are designed to solve, which is mainly analytical, while ESS rarely uses analytical models. In general, this for Bristol Communications Corporation is meant to help the supervision in identifying a number of issues.
The functionality of ESS can be likened to an airplane’s cockpit. The key indicators in this cockpit are monitored constantly. Once an indicator, for instance, elevation moves to unacceptable range, signals are sent to the pilot so that he may take a corrective measure. While hundreds of indicators are monitored constantly, majority are invisible until the time when they move to unacceptable range, thus posing a possible problem. Only few indicators such as the height above ground surface, elevation from horizontal, speed and direction are perceived as key determinants of smooth flight.
Hence key pointers are what the pilot should consider his business to monitor. Similarly, ESS should provide for each supervisor or decision-making to exercise control or watch over a few number key indicators that are critical to his department and to the company’s business generally and ensure that they are literally “on course”. However, it is true that there are several more indicators of ‘in course’ but they only become visible whenever they go beyond the acceptable levels within the business operations (Michael, 2007 p. 90).
Disadvantages of an ESS
Udo, A. and Erwin, G. (2003) put it that even thought the ESS construction block charges are falling, the maintenance cost and the cost to put one in place is the one that is expensive(pp78-79). ESS development projects are just as good as risks. It is very difficult to hear of a failure, but that does not mean that there are no failures. The fact that evaluation of the benefits that the systems bring forth is difficult, assessment of success is also difficult.
A survey that was carried out among seventy-three executives supported the observation that the success of ESS may be contingent upon the type of executive learning they bring about. According to the research, the perceptions of competitive performance resulting from ESS use are strongly related to mental-model building but there is no connection competition and mental-model maintenance. In other words, ESS encourages executive learning. A model of the relationship among the ESS, learning and performance is nurtured. This model processes mental-model maintenance whereby, new information fits into existing mental models and confirms them; and the mental-model building whereby, mental models are changed to accommodate new information
Lughi, M, Loreti, P, David, F (2002) Communications through Virtual Technologies: Complex Lecture on Networking, Springer, New York, York Inc.
Waraporn, J, O’Donnell, P and Arnott, D. (2008) Executive Information Systems in an Emerging Economy: Decision Support Systems, vol. 42n.4p. 2078-2084.
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Thomas W, George K, George E (2004) The use of computer-based information systems by German managers to support decision making: Information and Management, v.41 n.6, p.763-779.
Salmeron, L.(2002) EIS evolution in large Spanish businesses, Information and Management, v.40 n.1, p.41-50.
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Frédéric, J, Adam F. (2002) Crucial factors in the progress of administrative systems: leveraging the dashboard approach, Decision making support systems: Hershey, Idea Group Publishing, PA.
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Business School

The determination of fuel costs as variable or fixed depends upon the type of variable computed. For instance, if one is searching the passenger break-even point per week, he can threat fuel costs as fixed, because they will not change on a per flight basis. However, if one is determining the total profit figure per month, such cost should be treated as variable, because it is influence according to the number of flights made. d. Meal and refreshment costs of $5. Case 2-50 a. Shopping Humanized.
In September 1990, management decided to diminish costs by 3% to 12%. The cost control exercise also resulted in the laying off some personnel. Such action may have conflicted with the value proposition noted above, because the job security of Nordstrom’s employees was shaken. As a result their motivation and commitment to the company could have diminished thus not attaining the ‘shopping humanized’ that the company focuses upon. c. The expansion of the corporation incurred substantial fixed costs associated with new stores being built.
Further more a large variety of inventory was held, which also leads to more fixed costs, like for example inventory insurance costs. With the aid of such growth program, however the company managed to increase sales drastically and thus attain long-term benefits. For instance, in 1980 sales reached $407 million. Better reputation in the market place was another long-term benefit that was partly derived from greater availability of inventory.

Their efforts relation to cost-volume-profit analyses because each expansion strategy was conducted by meticulously analyzing that the costs involved would be covered by the sales generated leading to profit. Such measures ensure the long-term survival of the firm. e. The Nordstrom’s Reinvent Yourself Campaign was created by Minneapolis ad agency with the aim of enabling clients that shop at Nordstrom to feel unique, creative people. Under such an approach Nordstrom’s merchandise is directed towards a younger and hipper customer base.
Even though this was a very expensive marketing move, the company managed to reach more clients than competitors. This resulted in increased sales and attainment of their value proposition. There is a number of opportunity costs arising from the $40 million spent in this campaign. The company could for example have spent the money in other capital projects like new stores, in replacing its present tangible fixed assets or in investing the money and gaining a financial return. References: Answers. com, 2009.
Company History: Nordstrom Inc. (on line). Available from: http://www. answers. com/topic/nordstrom-inc (Accessed 18th February 2009). Huizenga Business School, n. d. Defining and Refining the Value Proposition (on line). Available from: http://www. huizenga. nova. edu/5017/presentations/CVch7slides_2e. ppt (Accessed 18th February 2009). Levine, S. , 2000. Reinvest This, thestranger. com (on line). Available from: http://www. thestranger. com/seattle/Content? oid=4640 (Accessed 18th February 2009).


Forms and Classification of Online Business

Forms and classification of online business According to (Adam, Z. R. ), the major different types of e-commerce (B2B) Business-to Business, (B2C) Business-to-Consumer, (B2G) Business-to-Government, (C2C) Consumer-to-Consumer and M-commerce which is mobile commerce. Business-to-business is simply e-commerce that is present between two businesses. It is said that it is the fastest growing type of e-commerce, much faster than B2C. It is a type of e-commerce wherein two businesses transact with each other online. About 80% of online businesses are of B2B type. Business-to-consumer is e-commerce between companies and consumers.
It is the second largest in growth and numbers among the types of E-commerce. It basically is interactions between consumers whether they transact online or offline or just gather information about products that are being offered by the company. Examples of such companies that are of B2B are Amazon and Costco. Business-to-government is e-commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations Consumer-to-consumer is e-commerce between private individuals with their fellow consumers.
This type of e-commerce is characterized by online markets and online auctions wherein these sites serve as a medium for consumers to transact with other consumers. This type of e-commerce is said to have huge potential of growth out of all the types of e-commerce. Consumer-to-business is e-commerce that is likened to reverse auction. It is basically the opposite of selling wherein a company would respond to a consumer’s need. This type of e-commerce is rarely encountered. However, e-bays report that there is a large number of this type of e-commerce wherein they earn millions of dollars every day.

Mobile commerce is e-commerce wherein transactions from businesses to consumers are done through wireless networks through the medium of PDA’s and portable handheld devices. Business Models used on the Internet According to (Starting an internet business- we make it simple), there are numerous ways on making money in the internet. There are business models on which they are differentiated on how they execute and return profit. Some of these are retail while some use the power of information to sell. Affiliate Marketing – the most common type of Internet business around.
It objective is to market and sell someone else’s product. There are various ways to market the brand both on and offline. Passive (or niche sites) – sites designed to market advertising and/or products that require little to no maintenance. These sites can be focused on small subjects or some are built to be big multi-subject sites. The main intention here is build, promote and forget. Information Sites – this could fall into the category of passive. These sites are built for advertising; they target a narrow subject and are intended to make money primarily from advertising.
Once set up and promoted, they only require occasional maintenance. Other specific business models are Product creator wherein creating one’s product be it a fashion line, shoes, and etc as long as it’s an original product and not someone else’s. Its difference with affiliate marketing is that Product creator makes one’s products and sells it as well. Email Marketing or more commonly called List building makes use of Email marketing wherein one has to build relationships with its customers and is particularly effective in building targeted traffic. It is the most highly rated way of making money in the Internet.
Services are providing services such as weight loss program, quit smoking plan and etc. This provides more consumer interaction and is recommended if one excels in interacting with people. There are also more specific types of business models and more recognizable which is the Retail and Wholesale which is like an online store version of a store such as SM, Costco or Walmart. The main difference between them is that one is whole sale and the other is not. This requires a higher investment compared to other business models since additional cost through shipping products, payment processing, customer service and etc are accumulated.
Creating a website for online business According to Poo (2008), in creating one’s website for business purposes, the first step is to determine one’s goals on what will one use the site for? Is it for retailing or purely marketing website? These are some things that need pondering before designing a website to make it an effective website. By brainstorming and finding out the main goals, determining the genre of the website is the next step. This will determine the pros and cons of the website. There are four genres of websites which are the sales or retailing, marketing, information and a web-based application.
Poo (2008) describes that retailing or sales website it focuses much on a lot of pictures, sporadic text on product descriptions and these sites are very user friendly and easy to navigate. However, one disadvantage of retail websites is that they are not usually recognized by search engines and one way of counteracting that and bringing in traffic is making use of affiliate programs. Marketing websites compared to retailing websites is that it is designed to sell a product and one product only. Marketing website is very easy to design which feature mostly text and a few images.
What is great about marketing websites is that it is perfectly positioned to make money through advertisements and affiliate programs and they are better optimized for search engines which are a huge advantage in getting traffic into the site. Information website compared to marketing and retailer is that its purpose is mainly to inform the consumers of its products or what is its trying to sell. Although some corporate websites such as Nokia, Honda, Sony, and etc. are information websites that can also sell, they are primarily designed to inform its consumers.
Information websites are only recommended for businesses that has a national or international presence since local businesses that only has a local presence only gets a few visits on its website while having a business that has a nationwide presence gives off many visits and informs its consumers well on its products. Web based application works like traditional programs but the difference is that web based application is accessed through the web unlike traditional programs which are installed beforehand. It’s basically computer based application that is hosted in a browser-controlled environment.
This type of business venture requires a team of programmers who are creative and persevering. The payoff is very profitable but this type of business is not recommended for the newcomers. Efficiency of Online Business compared to Traditional Business According to (Nielsen, 2008), about over 85% of the world’s online population has used the internet to make a purchase which is a staggering 875 million people. Reason why there is a huge percentage of the online community using internet for purchasing is that the internet is unrivaled for its convenience when it comes to researching and shopping.
Consumers nowadays would rather stay at the comfort of their homes shopping than travel and find their desired product which is very tiring compared to single click buying. In Philippine context, about 45% of Filipino online population has purchased through online means. Compared to other countries like South Korea which hails to be the number 1 in frequency of using internet for shopping, Philippines is near the bottom list of infrequent use of online shopping.
However, for a third world country like Philippines this is a new innovation that is newly tapped into by consumers and in a few years the trend would be increase in use of online shopping could be observed just like what is observed in the Global population which jumped 40% for only two years. In matters of what people look for in an online shop, according to (Nielsen, 2008). “In selecting sites on which to shop, one-third used a search engine or just surfed around to find the best online store. One in four relied on personal recommendations. It is said that once an online shop captures the hearts and loyalty of its consumers about 60% of these consumers would tend to stick to the same shop in buying its products since consumer relationship has been playing a large role in making these online businesses successful. Furthermore, recommendations from fellow consumers also play a huge role in making an online site successful. Feedback is one important aspect in closing transactions in online businesses especially businesses on online auctions or social networking sites that seem to make 1st time online shoppers reluctant to purchase.
Using Social Networking for Business According to (Brown of Inc. Technology), online social networking sites are new grounds for profiteering through online means. It is said that two out of every three internet user has used or visited a social networking site according to internet research company Compete. These numbers alone show the potential of what social networking has to offer for business opportunities. Among social networking sites, Myspace, multiply, facebook and etc. are the popular ones while there are other networking sites that have been primarily geared towards entrepreneurs such as LinkedIn, Ryze and Spoke.
One of the main strengths and factor in making a successful social networking business is to focus on building networks. First is to find the niche and build the appropriate networks that fit the desired business niche. This is the essential step if not the key step in establishing a successful online business through social networking sites. References: Adam, Z. R. (2003). E-commerce and e-business. Manila, Philippines: United Nations Development Programme. Brown, D. (2009). Using Social Networking for Business. Retrieved March 14, 2010, from the World Wide Web: http://technology. nc. com/internet/articles/200611/interneticebreakers. html Nielsen (2009). Trends in Online Shopping. Retrieved March 14, 2010, from the World Wide Web: http://th. nielsen. com/site/documents/GlobalOnlineShoppingReportFeb08. pdf Poo, C. (2007) Build Website Online. Retrieved March 14, 2010, from the World Wide Web: http://www. cessypoo. com/build-website-online. html Starting an internet business- we make it simple (2010). Types of Business Models- Step 2. Retrieved March 14, 2010 from the World Wide Web: http://biggbucksonline. com/2009/08/25/types-of-internet-business-models/


Micro-Brewery Business

The Bok Ale House and Brewery, an Atlantic Beach based pub and microbrewery (Brewpub) will operate as a single unit, medium-size alehouse, serving fine, hand crafted, high quality, ale, and lager beers. The microbrewery will be located at 1001 Atlantic Boulevard in Atlantic Beach, North Carolina. Today there are over 700 microbreweries operating in the United States. The Bok Ale House and Brewery will be Atlantic Beaches” first modern microbrewery, dedicated to producing flavorful ale and lager beers. A tradition revitalized!
The company’s goal is that of a multi-faceted success. Our first responsibility is to the financial well being of the brewery. We will meet this goal while trying to consider; 1) the effect of our products on the well being of our customers (and our staff), 2) the impact that our business practices and choices will have on the environment, and 3) the high quality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our basic financial goals.
The Bok Ale House and Brewery was incorporated in July of 1999. The founders are Minnie Mouse and Daisy. Minnie is the President and Daisy is the Vice President. There are 5,000 shares of common stock issued. Minnie and Daisy each own 1,000 shares and the remainder are retained by the company for future distribution. In addition they have loaned the company $100,000 of their own money for research and start-up costs. This company will be formed as a Partnership in lieu of a Proprietorship with Minnie and Daisy sharing equal responsibilities.

A suitable site for the first restaurant was found last month and lease negotiations are in the final stages. The location will be on Atlantic Boulevard, just outside Catwalk Pavilion and close to a dense population of the target market. When the lease is signed, there will be three months of free rent for construction and in that time the balance of the start-up funds must be raised. With that phase completed, The Bok Ale House and Brewery can then open and the operations phase of the project can begin.
If the business is meeting its projections by year two, we will start scouting for a second location and develop plans for the next unit. Our five-year goal is to exceed the maximum barrelage for a microbrewery (15,000 barrels annually ) and become a mass producer of Bok Ale and Boða Bok Lager worldwide with an annual profit of between $500,000 and $1,000,000.
Although the microbrewery industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. Trends are very important and Bok Ale House and Brewery is well positioned for the current interest in trendy, casual, beach atmosphere. As of March 15, 1999, there were 1,528 microbreweries, brewpubs, and regional specialty breweries in North America.2 There are more than 2000 malt beverage brands produced in the United States, six times the number of brands produced a decade ago. U.S. and international brewers continue to produce a tremendous array of beer styles with solid niche markets continuing to develop for industry members of every size.
The brew process was considered a woman”s job until the end of the first millennium. At that time, monastery breweries began practicing the brewing process. The monks decided they wanted a great tasting, nutritious drink to serve their meals. During fasting, beer was used to satisfy the hungry monks because the consumption of liquids did not break the rules of fasting. The monks were reported to drink large quantities of beer each day. Their love for the beverage turned it into a business.
The microbrewery business is becoming one of the largest industries in the country. In June 1997, an article in the North Carolina Times Union noted that there were 154 microbreweries without a brewpub attached and 278 more with a brewpub. In 1993 new microbreweries opened at the rate of nearly two per week in the State of North Carolina, particularly in the beaches areas . It accounts for over $240 billion annually in sales and the independent microbrewery accounts for 15% of that total. The average American spends 15% of his/her income on social entertainment outside the home. This number has been increasing for the past several years. According to the 1991-1992 North America Brewers Resource Directory, the average per-capita consumption of malt beverages was 23.4 gallons per year in 1989 in the United States.
Future Trends & Strategic Opportunities
The predicated growth trend is very positive both in short and long-term projections. In 1988, The National Brewery Association released the Microbrewery Industry 2000 report that forecasted how the industry might look in the year 2000. Some highlights from the panel’s findings:
· “Consumers will spend a greater proportion of their entertainment dollar away from home.
· Independent operators and entrepreneurs will be the main source of new restaurant concepts.
· Environmental concerns will receive increased attention.”
Craft brewers are anticipating the stability of a stronger and wiser craft-brewing industry that is already taking shape in 1999 and will continue to strengthen during 2000 and 2001. “The quality of the average brewpub and the average microbrew on the shelf is continually improving,” says David Edgar, Director of the Institute for Brewing Studies.
The Bok Ale House and Brewery will be offering adult beverages with a distinctive image.
The Bok Ale House and Brewery menu is small sized, complimentary offering of light appetizers. Our goal is to create the image of a casual, beach atmosphere while serving high quality, hand crafted beers, ales, and lagers.
Food production and assembly will take place in the brewhouse of the microbrewery. Malt barley, hops, yeast, and water will be used to create most of the ales and lagers from scratch. The brewmaster will exercise strict standards of sanitation, quality production, and presentation or packaging over the brewery and service staff. The older way of beer making will apply to certain of our products, such as; brewing in smaller batches, forgoing filtration and pasteurization to produce beers that retain more of the flavor and character imparted by yeast during fermentation. The business will produce less than 15,000 barrels per year in order to maintain its status as a microbrewery2.
There will be two areas a customer can purchase beverages. They may sit in the sitting area and get full service from a waitperson or can sit at the bar and order directly from the bartender. Either way will benefit the patron with free appetizers and high quality beverages.
There is a market segment that prefers to consume this type of beverage at home, although they do not have the time or facilities. There are already mail order companies that provide individuals and families with prepared ales, lagers and do it yourself home brewing kits.
This opportunity will be researched and developed on a trial basis. If successful, it could become a major new source of income without creating the need for additional staff or production space.
The market for Bok Ale House and Brewery covers a large area of diverse and densely populated groups. Although it will be located in a beach setting, it is an area where people travel to eat out and one that is also frequented by tourists. It is also an area known for and catering to the demographic group we are targeting. Microbreweries and brewpubs have a unique existence in that they produce a beverage of superior quality. This era of legal restrictions on alcohol consumption and the health conscious customer dictate that people are looking to drink less and but drink better . Beer is the most popular alcoholic beverage in America. Americans drink approximately 23 gallons of beer per year.
The goal of our brewery is to generate such an existence. There are more flavor profiles in the family of beer than in that of wine, sweet, dry, sour, tart, grainy, bitter, fruity – it’s all there. This makes beer not only attractive, but also as a flexible accompaniment to all kinds of food. We will offer beer on tap (small servings of several varieties at a fixed price), which creates a festive atmosphere as well as a conversation piece for our customers
The beach and boardwalk area is one of the most desirable retail locations in Atlantic Beach. The Atlantic Beach Chamber of Commerce rates it as the third best retail market in the state. There are more than 200 businesses in a 1/4 square mile area with average sales of $330 per square foot.
The customer base will come from three major segments:
· Local population — the city of Atlantic Beach with a year-round population of 123,000 is centrally located on the east coast of North Carolina and is within a 15-minute drive of 8 major suburbs.
· Colleges and Universities – Atlantic Beach has several schools within a 15-mile radius of Atlantic Boulevard and a seasonal population of 90,000.
· Tourism — between hotels, motels, bed & breakfast rooms and inns, there are over 8,500 rooms available. Last year they were at 98% occupancy.
· Local businesses — The City of Atlantic Beach lists over 100 businesses with an average of 12 employees in the Catwalk Pavilion area.
According to 1995 industry statistics from the Miller Brewing Company, beer consumption increases during the summer months .
The food concept and product image of the Bok Ale House and Brewery will attract two different customer profiles:
· The young adult and young adult student — more and more young people have developed taste for specialty brews.
· Curious and open-minded — “if you try it, you will like it.” Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that specialty brews can be tasty, fun, convenient, and inexpensive.
Entry into the market should not be a problem. The store has high visibility with heavy foot traffic all day long. The local residents and students always support new trendy spots and the tourists do not have fixed preferences. In addition, $25,000 has been budgeted for a pre-opening advertising and public relations campaign.
Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketing vehicles will be created to convey our presence, our image, and our message:
· Print media — local newspapers, magazines and billboards
· Broadcast media — local programming and special interest shows
· Point of sale – A well-trained staff can increase the average check as well as enhancing the customer”s overall experience.
A public relations firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. The marketing effort will be split into three phases:
1) Opening — An advanced notice (press packet) sent out by the PR firm to all media and printed announcement ads in key places. Budget – $10,000. An additional $5,000 has been budgeted for a one-day Open House Extravaganza.
2) Ongoing — A flexible campaign (using the above media) assessed regularly for effectiveness. Budget – $10,000
3) Point of sale — A well-trained staff can increase the average check as well as enhancing the customer’s overall experience. Word-of-mouth referral is very important in building a customer base.
Future plans and Strategic Opportunities
Catering after-hours office parties for special occasions and holidays (even outside of our local area) may become a large part of gross sales. At that point, a sales agent would be hired to directly market our products for catered functions.
The microbrewery, at 1001 Atlantic Boulevard, is a 2400 Square foot space. It was formerly a restaurant and needs on minor structural modifications. The licenses and codes’ issues are all in order. New equipment and bar furnishings will be purchased and installed by the general contractor. Offices of the corporation are presently at Daisy Duck”s home but will be moved to the microbrewery after opening.
The microbrewery will be open 7 days a week. Service will begin at 5:00 PM and end at 2:00 AM. The microbrewery will be closed Christmas and Thanksgiving.
Employees will be trained, not only in their specific operational duties, including proper sanitation methods, but also in the philosophy and applications of our concept. They will receive extensive information from the brew master and be kept informed of the latest information on microbrewing.
A big emphasis is being placed on extensive research into the quality and integrity of our products. Products will constantly be tested for our own high standards of purity. Costs and inventory control will be handled by our computer system and checked daily by management.
All products will be prepared on the premises. The brewery will be designed for high standards of sanitary efficiency and cleaned daily. Ingredients will be purchased and stored in large coolers in the basement.
Minnie Mouse, President. Minnie is also the manager of another microbrewery. Since 1977, the company has created a high-profile mainstream image for specialty brews. In 1992, the store became so popular and profitable, she decided to expand her horizons and co-own a store of her own. Minnie brings with her a track record of success in the microbrewing industry.


Business activities

Compare the challenges to selected business activities within a selected organisation, in two different economic environments. The organisation I selected for this assignment is Ryanair. Ryanair is an Irish low cost airline. The head office is located at Dublin Airport, Ireland with the operational bases at Dublin Airport and London Stansted Airport. Ryanair is one of the largest airlines in Europe. Boom: Boom is the opposite of a recession. Boom occurs when more goods are being produced and consumed and incomes are rising. The impact of a boom economy on Ryanair:
Ryanair is growing as a result of the effects of the boom. They are planning a major expansion in Scotland after announcing new routes and that it is going to build its biggest maintenance base there. This will create more jobs locally. Ryanair will also need to invest in more aircrafts and equipment. This will help support the manufacturing industry. By expanding the business, Ryanair can provide more flights. They can meet consumers demand and also attract more customers with their flight offers. This will increase their business revenue because they will sell more flights.
Ryanair’s reputation will get better because they will be happy with the service and tell other people about it. Ryanair will have to spend more money on keeping the plane running including fuel, wages and staff training. This money will help Ryanair to increase business and therefore increase profit. The benefits of a boom economy: Rising employment and real wages: This shows that the company are in the boom economy and they have to employ more employees because when they buy new flights, they need pilots and cabin crew for the flights.

If the employees work long hours the cost of the wages will rise because of the amount of hours the employees work. Increased demand for imported goods and services: Ryanair have to provide their flight tickets for higher prices because of the VAT being increased. The VAT is increased in a way to profit and going from the boom because this is the time were the business is going up after a down fall they might had. Government tax revenues will be rising quickly: Revenue is the income that the company receives from its business activities, usually from sale of goods and services to customers.
In the United Kingdom revenue is referred to as turnover. Sales – cost of production = revenue. The government tax revenue being raised quickly means that the money has a fast overturn because when the customers pay the money to Ryanair for the tickets and after that Ryanair pays the tax with that money. Company profits and investment increase: In the boom economy the company makes more profit and therefore makes more investments. The impact of the boom is to recover from the things that didn’t work from the previous recession and investments they have made will be more efficient.
This will enable the company to make changes within the operation of the business. Rising productivity: The impact of the company being in boom is that the flights they provide being improved and new employees will be employed. This shows that more goods are being produced so this means that its productivity is rising. The impacts of the boom on the company include being able to expand the company, investing across the countries and employing more people. The number of employees increased because of the fact that the business is doing well and needs for new recruitment for new flights to be made; this will increase wages.
Recession occurs when people involved in business become more cautious and customers cut back on spending, and start to save more; manufacturers and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers. Unemployment: The economic situation of people looking for work and being willing to work at the prevailing wage, but unable to find a job. The impact of recession upon unemployment is that the rate will rise because when the company doesn’t have any money to pay the employees then this will lead to unemployment.
Low-skilled, low-educated workers and the young are most vulnerable to be unemployed in a downturn because the jobs will be given to skilled, educated and experienced workers. Business: A business is a commercial enterprise that attempts to earn a profit by providing services and/or manufacturing products that are offered for sale. The impact of recession upon business is that the sales tend to fall but then they rise again in a boom. Social effects: Less wages and more unemployment means a decrease in consumer spending.
The loss of a job is known to have a negative impact on the stability of families, and individuals’ health and well-being because people worry when they can’t pay their bills and buy food. When people are unemployed, they are reluctant to spend money on luxuries such as travelling. The impact of the recession on Ryanair: Negative: Ryanair lost profits as they had to cut fares to keep the passengers coming and the fuel cost and added environmental taxes have increased their expenses.
There was a decline in real income, which means the income of an organisation after taking into consideration the effects of inflation on purchasing power. Inflation occurs when the value of money begins to fall, thereby decreasing purchasing power. So Ryanair had less money to invest. Jobs are also at the risk of being lost because they are selling fewer flights and this will lead to less staff needed to work for Ryanair so there will be redundancies. The impact of the recession was added to by the ash cloud.
Due to the ash cloud, thousands of passengers were stuck at airports and Ryanair had a duty to provide them with food and shelter. They have to pay back the money for the people who booked tickets for flights that passengers could not get on. Ryanair was accused of failing to take travellers and repay expenses almost four months after the volcanic ash led to cancelled flights. Positive: Ryanair have taken on extra staff to deal with complaints due to the volcanic ash incident. This will help the local economy because they can provide short term jobs for the local people.
Ryanair insists it will continue to expand across Europe. Some companies went bankrupt so this will lead to more opportunities to get new customers. More customer’s mean more profits so there’s more money to invest. This will help Ryanair to survive the recession. Some airlines will go bankrupt which is good because Ryanair will have less competition on the market. The impact of recession upon Ryanair is that it makes aircraft purchasing cheaper because there will be less demand in the market. The number of Ryanair passengers will increase because there will be less competition for customers.


Business Development

1.1. OVERVIEW This report is written to fulfil the requirements of assignment 2 of 157.343, Business Modelling. The objective is to select a known business and using a ‘Business Vision View’ identify and evaluate one problem area, confronting the organisation, that has potential for improvement. Having selected the problem area for improvement, this report focuses on this aspect and uses UML modelling techniques to enhance the problem domain. A process of analysis using a ‘Business Process View’, a ‘Business Structure View’ and a ‘Business Behaviour View’, and associated modelling techniques is used to further identify the findings and implications of the specified problem . The report will discuss the findings, reach conclusions, and suggest recommendations, in line with best industry practice. 1.2. BUSINESS SELECTION The business selected for fulfilment of this assignment is Webforge NZ Ltd., a local manufacturing company that were willing to assist in my research. They offer an ability to study a relatively fledgling IT operation that has potential to develop, but must confront integration and development issues unique to their industry.
Management, although supportive, were limited by time to discuss in-depth problem issues. 1.3. COMPANY PROFILE Webforge NZ Ltd is part of the Webforge Construction and Engineering Group. A detailed company profile is available at The Parent Company is Delta PLC, a London based international mining, galvanising, and electrical company operating in South Africa, North America, Australia, and throughout the Pacific. Delta has recently purchased the Webforge Group from Pacifica and is in a transition stage. Webforge NZ Plant is located in Tremaine Ave, Palmerston North, and employs 39 staff. Main revenue streams are from manufacturing gratings and handrails, subsequent galvanising processes, and the importation and sale of drainage and access covers. Aluminium sunshields are also distributed on behalf of Webforge Australia. The 2004 budgeted turnover is NZ $8m, of which the IT budget is $25,000 for general operating expenses, and $40,000 for upgrade proposals. This is less than 1% of total turnover. The company organisational structure, as attached in Appendix 8.1, shows no separate IT/IS division.
Only two staff have IT as part of their job function, and control is maintained through the operations manager. 1.4. USE OF UML BUSINESS MODELLING Universal Modelling Language (UML) was originally designed for software engineering but through the use of stereotype extensions Hans-Erik Eriksson and Magnus Penker, in their book ‘Business modelling with UML; Business patterns at work’ (2001), demonstrate how to adapt and customise the concept for business modelling. This book has been extensively used for the analysis and production of this report in conjunction with the course slides and handouts. The opportunity to model Webforge provides a chance to depict an abstraction of how the business functions. It allows for the “Visual depiction of functions and relationships that are usually difficult to visualise clearly” (Ericksson & Pinker, 2000). It can assist in the understanding of existing job and business functions and the identification of problem issues and potential areas to gain in efficiency or effectiveness. Modelling tools may be utilised as a means of specification to identify the real needs and wants of the organisation.

They can also be used as an exploration tool, for proposed additions and alterations, to determine the suitability of, and potential for, integration into existing systems. UML’s use of nine predefined diagrams assists in the capture and depiction of the structure, behaviour, and processes, of the organisation. Three primary categories are used to breakdown and display business function: Physical attributes:- machines, materials, and products. Abstract:- debts, instructions, services. Processes:– transformation functions that refine or use inputs to produce outputs. This report will focus on the use of ‘Class, Object, Statechart, and Activity diagrams to present these attributes and business views.
This use of vision and mission statements, SWOT analysis’s, and conceptual models of the ‘Now’ situation, act as the foundation for subsequent modelling and problem analysis. The identification of Critical Success or Critical Failure Factors (CSF’s & CFF’s) and Key Performance Indicators (KPI’s) are also instrumental in the identification of elements that assist growth or avoid failure. Elements of the Business Vision View should include Internal and external influences. Internal considerations include information and work flows, present and desired profitability, and desired service levels. External analysis should encompass customer identification, competitor activity, company size and influence in the industry, public perception, and economic, political, and social influences. Business Process View U3/17-20 The Business Process View is at the centre of business modelling, and is based on the Business Vision View. It represents the activities and value created in the business and illustrates the interaction between the processes and resources (E& P, p.89).
Ultimately the Process View will demonstrate the required activities to achieve the desired goals. (Nb: p106 – a thorough understanding of the business is required to answer significant questions to adequately model internal processes. Business Structure View p118 The structures among the resources in the business such as the organisation of the business or the structure of the products created. (E&P, 2001 p.89) Shows the structures of: Resources, Products and Services, Information. Does NOT show the structures of sub-processes. The business structure view is used to compliment and supplement the Business Process View. They are often depicted simultaneously using class and object diagrams. (U1/21). Business Behaviour View The individual behaviour of each important resource and process in the business model. (E & P, 2001, p.123) BBV is a ‘State”. A state decides what may happen, which actions will occur if a state changes, and how an object can be made to enter a specific state. (U1/27).
Diagrams (100 word each + 1 ref each) Conceptual Model NOW situation Class diagram Hi level Defines concepts used in business Defines relationships between the concepts Object Diagrams – Goal Problem Diagram E & P p.35 Object diagrams explain and illustrate complex class diagrams. They are static diagrams that depict a snapshot of objects and their relationships at a given time. (U2/22) (U3/15) An object diagram of objects and their relationships Hi level goal broken down into sub-goals Stereotype <> Relationships between goals are dependencies and associations. Includes the concept ‘problem’ continuous or temporary. (U2/23) Can develop a goal/problem action plan for temporary problems, which could contain <>, <>, <>, and <> stereotypes, depicted in a notation symbol. ??? Goals must have : Description (string) Value: (Qualitative or Quantitative integer) Unit of measure: (String) Includes 3 things **** Activity Diagrams (Process Diagram) p.58 Activity diagrams are used to describe activities and actions taking place in a business environment, depicting internal organisational processes. eg p 107-108 – U3/17-20 The architecture of any business can be depicted through the process diagram by illustrating the four common business concepts of ‘Resources’, ‘Processes’, Goals, and Rules.
The process diagram uses UML <> extensions that describe the activities performed within the processes and how they interact (E & P, 2000, p.107-111) (U3/20). The model includes: Process Activity is a stereotype that describes the internal steps taken in the transformation process. It may include other internal processes. Goal objects from the goal problem diagram are shown above the process as dependent. A description of the goal and a qualitative or quantitative measure is required for definition. Input Objects depict materials and resources that are consumed or refined in the process. They are depicted to the left of the process as in the standard transformation model. Standard classification stereotypes include <> eg raw materials, <> eg; orders, <> eg; legal guidelines or benchmarks, and <>. Output Objects are conversely depicted to the right of the process and represent the physical production or refinement of the inputs. Supplying Objects differ from inputs in that they participate in the transformation process but are not refined or consumed.
These objects are stereotyped with <> and are typically drawn below the process. Controlling Objects, typically drawn above the process, depict resources that control or run the process. Dependency Lines display the connectivity between objects and the process, by use of a dashed line, indicating that they are all resources. Class Diagrams (E&P< 2001 p.119) (U1/**) (U1/17) Describes the structure of a system . A class describes a set of objects that share some essential features such as attributes, operations, and relationships. The combination of the objects build into Objects are described by their internal properties, including, <> such as people, materials, and products, <> such as services, information, and knowledge. They may include an attribute, which, is an assigned quality inherent in the object and operations, which describe the performance of a process. An association depicts a relationship between two or more categories.
A generalisation is used to organise objects in hierarchies. Statechart Diagrams (E&P, 2001, p. 35 & p.125) (U1/29) A statechart shows what triggers a change in state and how objects react to events occurring around it. Their dynamic nature depict the flow of an object when an event occurs. P.35 The use of a statechart diagram incorporates: start, end, and intermediary ‘States’ , ‘Events’ that cause a state transition from one state to the next . Actions, which notate the activities performed either in a specific state or when going from one state to another. (U3/28) There are four types of events: Call events – call an operation that affects the attribute of an object. Time events – they change after a given time. Signal events – when objects are sent or received. Change events – when there is a chance in attribute value. Ah Ha A class icon typically displays a name, attributes, wether the attributes are public or private, and a scope. E&P