Passing the Graduation Exam

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During the 11th and 1th grade, we had to take time and prepare for the graduation exam. The graduation exam consisted of math, sciance,reading, and language. The history part of the exam was ommitted.


Each day when we got to class we took out our books and the teacher told us what page to turn to. From the time class started until it ended, we went over some of the materials that were going to be on the graduation exam. Before class ended the teacher gave us homework to do out of the graduation exam books. We had to turn this honework in the next day to get a grade on it. If we did not make a passing grade, we hade to do extra work. After months of preparing for the exam, it was finally time for us to take the exam. The day of the exam, everyone went to breakfast, their lockers, sharpened their pencils, and some even had time to study some more. Then it was time to go to the auditorium. When we got to the audiorium, we took our seats and waited for the instructors to pass out our answer sheets and test booklets. After we filled in the information on the answer sheets, we read the directions and began taking the test. First, we took the language, next the reading, then the math and finally the science. The language and reading were easy. The math and science wer hard because because we had not covered all the material.







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modern advertising

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Modern Artvertising





Art in today’s society takes many forms. With the proliferation and advancement of information technology, graphic design, publishing capabilities, and understanding of human vision and comprehension, art has invaded sectors of society that before seemed separate and unconnected to artistic endeavors. Artists today pursue careers in architecture, graphic design, advertising, and civil engineering. Advertising has benefited the most from these artistic “mercenaries”. Ads today utilize many facets of sight and perspective, and visual depictions of products or ideas are usually more effective than written words. These ads are the closest things we have to the commissioned artworks of the earlier times. Instead of wealthy families paying an artist to paint and incorporate them into famous and emotionally-charged scenes, companies pay advertisers to put their products in exaggerated settings. Advertisers use light, texture, shapes, lines, and colors just as earlier artists did. And they use them for the noblest purpose of all the pursuit of money.


The ad I chose to analyze came from the January 6, 00 issue of ESPN The Magazine. It is an ad for ESPN, one of a recently-introduced string of advertisements showcasing all the aspects of sports which affect our culture and the basic fabric of the world around us in ways we don’t normally think of. It shows a young boy (or possibly girl) on a grass field with a soccer ball at his/her feet, and the caption reads “Without sports, weekends would be weekdays.” It is poignant and simple, and serves to conjure up all kinds of feelings in the viewer.


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The first thing a viewer notices is the nearly all-white soccer ball close to the forefront, against a sea of dark green grass. The young child’s legs direct our view there as well. As our eyes leave the ball, the same legs direct our vision back upwards. It is then that we notice that the child’s head is cut off by the top of the page. This unusual tactic actually serves a very effective purpose, and ties into the rest of the picture’s theme magnificently. By not showing the child’s face, he/she maintains a certain amount of anonymity, thereby making him/her universal and shared. He/She could be any of us as children, any of our children, any of our siblings, cousins, neighbors, etc. By keeping his/her identity from us, we are allowed to fill in the gaps with memories and acquaintances of our own. The non-descript uniform carries this further, and even the team name on the crest of the shirt is blurred.


The vanishing point of the ad is right along the horizon, and draws us to the plain white soccer goal in the background, set against a grove of trees. As our eyes scan the horizon we are taken back to fields of childhood sports games and memories long forgotten. There are no distinguishing features of the field or town, thus also conveying a universality that excludes no one and transports viewers back to innocent simpler days. The dull gray sky takes no attention away from the frozen moment of time showcased in the ad. It is a global theme; one that anyone who ever played sports as a child, knew a child who played sports, has seen a child play sports, or has children who play sports can connect with wholly and completely.


The Renaissance as we know it and the artistic innovations it produced were set in motion long before it actually started. The Early Renaissance and Late Gothic periods served to lay the groundwork for the massive upheavals that art would undergo in the coming centuries. Before these periods, the Middle Ages produced art of little impact and appeal to the masses. Medieval art was flat and untextured, and religious works were inhuman and beyond the realm of reality. One of the earliest artists to depart from this flat, otherworldly approach was Duccio di Buoninsegna. Duccios The Betrayal of Jesus appeared on the back of a great altarpiece, called the Maestá. Even though it is only one section of the altarpiece, The Betrayal of Jesus, in and of itself, is truly a masterful work. It is one of the earliest examples of humanism in European art, depicting a very religious and doctrinal scene with realism and texture.


The work tells a narrative in parts, of the legendary deceptive kiss of Judas and its immediate ramifications. The detail put into the faces of the figures shows a myriad of emotions and was something entirely new to religious art. The malevolence of Judas and his throng, the anger and action of Peter, the terror and concern on the fleeing disciples; all are shown with great clarity and skill. Jesus is in the very center of the piece, which is traditional and consistent with most paintings of holy figures. His face seems to be the only one without emotion, or the one with the most. The solemn blank stare could be a symbol of the peacefulness and serenity associated with him, or perhaps it conveys his knowledge of his own inevitable fate. Peter, shown cutting off the ear of the priests servant, is shown in mid-action. This is another relatively new idea, one that goes along with a better understanding of light and movement.


The colors of the scene are also important. The background of the painting is conventional, with a flat gold sky and basic flat trees and rocks. These drab colors contrast highly with the rich deep colors of the robes of the characters, drawing attention to them and serving to highlight the tension of the scene. The robes of the rabble around Jesus and Judas are bright oranges and reds, conveying the anger and heightened emotion of the pack. This is in contrast to the darker, more soothing tones of the disciples’ and Jesus’ robes. Shadows play across the faces of every figure in the work, which serve to add depth and texture to the already realistic faces of the characters. But the shadows really work wonders in the cloaks each person wears. Shadows and wrinkles show a draping, realistic effect, one which is new to art at the time. No longer just flat representations of simple images, the dimensions of the robes and faces serve to accentuate the realism and passion of the scene.


The shapes in the image are simple yet effective. Lines are created which point the viewer towards the main action in the center. The slope of the mountain in the background points directly to the angry mob surrounding Jesus and Judas. The spears being held by the minor members of the crowd serve to draw vision directly to the golden-haloed Jesus and the climactic moment of the treacherous kiss of Judas. Even the faces of the men depicted draw lines to the dramatic scene unfolding. Every face is turned toward Jesus Christ, save Peter’s. The arms of the men grabbing Jesus’ cloak also point up to his face and the kiss of death he receives. It is a scene full of action, full of emotion of all kinds, full of movement, and full of subjects. And yet through all this chaos, a single pair of men are the centerpiece of the work, the peak of interest, the focus. Every line and shape and color and face and feeling is directed at Jesus and the malevolent, sinister Judas. All attention is directly focused on the smallest, most subtle, and most important act of the painting, the actual physical and symbolic manifestation of The Betrayal of Jesus.


Art is one of the most ambiguous terms in the English language. It can represent so many things in so many sectors of our lives, it is almost impossible to distinguish where it begins and ends. In today’s world, it takes on vastly different expressions than it ever did or could in the past. Art is exploited and marketed, packaged and sold. It is controlled, demeaned, lowered, and employed to an extent not seen in the course of human history. Art now serves mainly not as an outlet of emotion and beauty, but as vehicles for increasing one’s mutual funds and 401(k)’s. It has a new function, rather than simply being an _expression of a human soul on a medium. It is designed to manipulate us and make money. All this being said, beauty and revelation have not left art entirely. It still requires divine inspiration to create a truly effective work, just as it always has. If it is used now to make money, that does not necessarily alter the beautiful complexity of its genesis. Visual patterns have always had broader appeal than words or speeches; sight is, after all, a human’s most divine sense. Sight can tell so much so quickly and do so with such conviction that it is really wondrous when considered. Artists have an innate ability to capitalize on this awareness and can tell us how to feel with simple brush strokes or pencil marks. It is the same as it has always been, only completely different.





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flea

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“The Flea”


By John Donne


Think about a typical Thursday night out in a college town; every night girls and guys get drunk and crazy. Bodies are emitting alcohol and pheromones from every pore, exchange conversation, pleasantries, and yes even sex (maybe not bluntly but certainly eluding to). Should sex be taken so lightheartedly? Or do we take it to seriously? These questions may be to deep and pointed for most to approach, yet John Donne in this poem “The Flea” goes through them like nothing. A flea in the Oxford English Dictionary refers to anything small or contemptible and blood is symbolic images, not only questions the validity of coveting virginity but also the importance of sex as it relates to life. In this poem Donne uses a flea, blood, and the murder of the flea as an analogy for the oldest most primal exchange sex.


The metaphors in “The Flea” are plentiful, but the symbols repeated throughout the poem are hidden. The Flea has many symbolic meanings. One it questions the validity of coveting virginity but also the importance of sex as it pertains to life. In this particular poem the flea symbolic of the act of sex from Donne’s remarks in the beginning, During the time this poem was written (the Renaissance) the flea was used in many poems about sex. In this particular poem the flea is symbolic of the act of sex from Donne’s remarks in the beginning, “Mark but this flea, and mark in this/ How little that which thou deny’st me is;” the flea is small and inconsequential, his lady denies him sex, which I believe is symbolic because here their talking about having sex and killing the flea not being a big deal and later making a huge deal about it. The flea is described as a marriage temple and a carrier for life, but in the next stanza as something insignificant and small. The speaker applies a certain quality to the flea and therefore to sex.


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Blood is used more than once as a symbol. Blood in this poem is symbolic of life and the soul. The speaker remarks that in the flea his blood and his lady’s blood were mixed, therefore during sex there souls are “mingled” and become one. This is where the flea becomes a marriage temple or bed. Here he speaks about the metaphor of sex, how it can be a spiritual and important thing. But this is eventually revealed to be only a ploy to prove that if the speaker’s lady can treat sex so irreverently after he had made comments about how sacred it was, than sex should not be dealt with so seriously. After the speaker’s lady kills the flea he asks her if she has “purpled thy nail in blood of innocence?”. Using Donne’s metaphor as a basic for interpretation the result is that he asks her if they finish the act of sex (kill the flea) if it will have really diminished her innocence. The speaker is commenting that sex does not have the power to take away innocence or life. The murder of the flea also adds to the overall metaphor. When the speaker and his lady’s blood is mixed in the flea the speaker refers to the flea as a marriage, therefore the exchange of life (blood) during sex forms a marriage between the partners. the narrator asks his lady not to kill the flea, which is symbolic of the end of sex, or orgasm.


Conclusively the speakers states that the flea had not taken hardly anything of importance from either him or his lady and ,”just so much honor, when thou yield’st to me,/ Will waste, as this flea’s death took life from thee.” Therefore the act of sex will not diminish either of their lives and his lady will not be giving up hardly anything by yielding him sexually. Donne is trying to reason with his lady by lessening the importance of sex in the grand scheme of life. Even today, with every movie and TV commercial screaming sexual connotations, is sex as important and life affirming as we make it out to be? In my view this poem conveys it’s message loud and clear, but that does not mean that i agree with it. we take sex to seriously, we covet the act of breeding as if it was gold, when truthfully it does not affect us as much as we would like to think. Although most of the time it tends to be awfully one sided and testosterone bases. While most would agree that we put to much importance on sex, it is an important issue that carries with it consequences, as well as physical and emotional repercussions.





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Julius caesar

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Julius Caesar


The Senator’s of Rome murdered Julius Caesar by stabbing him with daggers. They felt they had to kill him to prevent him from ruling and to save Rome. Caesar’s pride, carelessness, and arrogance led to his demise, and he blindly drove others to this end with his own actions.


Caesar’s pride contributed to his downfall. He saw himself as the fearless General who could not be defeated, and as the perfect ruler who was never wrong. His pride in his actions was what people feared the most of him because he had no fear of the consequences of his actions. In reality, Caesar was a tyrant who could not make decisions, and who thought he was much greater than he was. When Caesar is asked to pardon Metellus Cimber’s brother, Caesar tells them that “like the northern star” he cannot be swayed from his true course, and he will not pardon him. Caesar believes this shows his greatness and his abilities to be a strong ruler, but Caesar is not decisive or strong. When he was first asked to go to the Senate, he could not make up his mind on such an important issue.


Caesar’s carelessness comes in when he fails to realize that his Senators are plotting to kill him. He pays little attention to what is going on around him or to the warnings that something is wrong. The Senators did not like Caesar or respect him, but he was too preoccupied with meaningless things to take notice. Caesar was extremely superstitious and much of his attention was spent on understanding dreams and omens. Calpurnia tries to warn Caesar to stay inside on the day of his death because of a disturbing dream. Caesar agrees, but later is convinced by Decius that the dream means he should go out that day. His careless actions and attention to superstition instead of reality result in his death.


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Arrogance blinded Caesar to the truth of himself and what was happening around him and also led to his downfall. Caesar believes himself to be superior to all others and even immortal. He compared himself to “the northern star” or something heavenly. He saw his military powers as undefeatable when he said “I came, I saw, I conquered!”. Caesar believed that people only needed one strong ruler, and that he had all the characteristics required of such a great ruler. He was unwilling to listen to others and believed he always knew the right answer. Caesar says that he preferred to die one death than die countless times as a coward. There are many more examples of Caesar’s arrogance and self-importance which more than anything led to his murder.


Caesar was murdered to save Rome according to the Senator’s. While Caesar had many talents, his pride, carelessness, and most of all his arrogance, would have caused far more problems for Rome than any good he might have done.





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NEW PRODUCT DEVLOPMENT

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Explain the critical factors in the new product development process. Critically analyze the NPD effectiveness in the industry.


NEW PRODUCT DEVELOPMENT


For a new product to be successful, it needs to be launched proactively in the “right” market at the “right” time with the “right” marketing plan. The key is to create strategic competitive advantage that can be sustained over a period of time.


At the first step of process, it is essential to consider three factors for screening the product ideas. These factors are the reason for the new product, the extent to which it is new, and the opportunity cost and development risk.


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Reason for the New Product


Any organization needs to have a clear idea about why it is developing the new product and how it fits with its strategic vision. The internal and external forces are key factors leading towards new product development. The greater the overlap between the two forces, the higher will be chance of success.





Reebok has a history of doing the extraordinary. The Massachusetts athletic shoe company with British roots stunned spectators when it exploded off the blocks in 181 and quickly moved to the head of the sports and fitness industry pack. Reebok sales went from zero to $1 billion in less than 10 years, then doubled, then jumped by another billion dollars. In 187, Reebok was acknowledged as the fastest-growing company in America by virtually every business magazine and surpassed current industry leader, Nike.


But like the young superstar whose success is based on raw talent rather than disciplined training, Reebok found itself struggling in the early 0s. Its growth had outpaced its capabilities to manage the business. Sales were flat, and operating costs were out of control. There was high turnover among senior leaders. The company that had dazzled the business world was running on fumes. It was time to regroup and re-strategize.


As part of Reeboks 001 commitment, the Reebok long-range planning team outlined goals it has to reach in order to fulfill the vision of revolutionizing sports and fitness through explosive creativity and innovation.”


To stay ahead of the competition, athletic shoe companies must constantly look for new product innovations. The traditional product life cycle theory indicates that typically a product will have an s-curve with stages of growth, maturity, saturation and decline in sales and profits. This theoretical model seems to hold true also for athletic shoe products, which means that the question of product development and new- product innovations is important in athletic shoe companies. It is sometimes difficult to define what is meant by a new product. Improvements to an existing product can render that product so new as to make it seen by prospective purchasers as a genuinely new product, and if an existing product is launched to a new market or to other purposes, that product is also new for the customer.


An underlying assumption of new-product development process models is that new-product ideas can be dropped at any stage of the process if they do not satisfy the criteria for success at the particular stage. The process can be divided into to sections front end planning and implementation. The front end determines what service concepts will be developed. The organization is assumed to have an overall strategic vision and mission, which determine the new-product strategies of the organization. (Zeithaml & Bitner 16, 17-00) The different strategic options for new-product strategies are shown in the figure.





The first actual step in the new-product development (NPD) is the idea generation, which can be systematic search of new ideas. Typical sources of ideas may be formal brainstorming, solicitation of ideas from employees and customers, lead-user research, learning about competitor’s offerings etc. According to studies referred by Kotler more than the half of the new-product ideas come from within the company, one quarter comes from customers and the rest mainly from competitors. During the idea generation a large number of ideas are often created. The purpose of screening the ideas is to reduce the number of ideas. The idea screening is the appropriate time to review carefully the question of product line compatibility. (Kotler et.al. 1, 1-; Zeithaml & Bitner 16, 0). The key questions to ask when screening product ideas are, if there is a market for the product, if the product is a right one for the company product strategy and if the product can be produced profitably (Morgan 16).


A clear definition of the product concept should be the outcome of the product development and evaluation stage. The new product concept should then to be evaluated by employees and customers. The next step is to determine the feasibility and potential profit implications. Demand analysis, revenue projections, cost analyses, and operational feasibility are assessed at this stage. The stage will involve preliminary assumptions about the costs of hiring and training personnel, delivery system enhancements, facility changes and any other projected costs. (Zeithaml & Bitner 16)


Once the new product concept has passed all the front-end planning stages, the concept is ready for the implementation stages. During this phase, the concept is refined to the point where a detailed product blueprint representing the implementation plan for the product can be produced and tested by the personnel. The market testing phase is in sports industry often implemented by introducing the new product to a certain group of customers or representatives of intermediary stakeholders. If the product has passed all the former stages the service goes live and is introduced to the marketplace (commercialization). A very important phase is the post introduction evaluation. At this point, the information gathered during commercialization can be reviewed and changes made to the delivery process, staffing or marketing-mix variables. (Zeithaml & Bitner 16)





Figure illustrates the New-Product development process (Zeithaml & Bitner 16, 00), which represents a traditional model for NPD.


Extent of Newness


• New-to-the world-product. Products that are breakthroughs and create an entirely new market; change the existing behavior of customers.


After the launching of NIKE AIR, by Nike, share prices of REEBOK fell considerably and they had to come up with a totally new product to sustain their market value. Reebok engineered the DMX technology; the new high-tech shoes hit the market with a racy name DMX Series 000. They were a success. Reeboks footwear sales in the U.S. were growing again for the first time in years, and the companys reputation was rebounding. Reebok had reinvented itself. The DMX running shoe was called it a breakthrough technology.


• New-product-lines. Products that are new for an organization but not for the marketplace, an organization first entry into an established market.


With the globalization on the rise, and more and more companies venturing in the Asian market, Reebok firmly lay its foot in the market. However, they were not an instant success. The product line that they had was totally different as compared to the European and American market. They had to create new products in their product line. The CRICKET craze in the Asian market made Reebok create a totally new product, and they did it very successfully because of its marketing strategy.


• Improvements in revisions to existing products. Products that are made better in terms of performance or value by replacing existing products.


The old Reebok product lines were taken of the selves. These products were all given a new touch. The new trend of fashion accompanied the new products. This made the product more attractive and trendy. The range of apparel is a fusion of fitness and lifestyle. This new collection is being launched under bright bold and vibrant apparel lines, each distinct and differentiated from other in functionality, style, colors and fabrics.


DESIGNING AN EFFECTIVE MARKETING PLAN


Designing an effective marketing plan requires measurement of customer preferences. Conjoint analysis is a useful technique for estimating customer preference parameters such as part-worth, the importance each customer assigns to various parts of a product offering. Such estimates would help designing marketing plan for different marketing segments and also in calculating preference shares of new product and other competitive offering.


Reeboks performance and competitiveness in the athletic shoe market was hindered by some fundamental sports marketing problems. The most fundamental is a long-term problem of ineffectively scanning the environment. This contributed to a more immediate problem of either not targeting, or failing to effectively target, the most profitable segments of the athletic shoe market. Reebok is strongest in the over-45 age segments and weakest in the 1-4 age segments. The over-45 group has the most disposable income, but the 1-4 age groups purchase athletic shoes much more frequently and are also willing to spend more on shoes for fashion and coolness.


These problems also contribute to a secondary problem of an ineffective marketing mix. Reebok was focused more on placing relatively less expensive shoes in department stores and promoting them with frequently changing promotional campaigns.


With all the above mentioned factors, Reebok should look into defending its current market share in the over-45 age groups and also pursue the 1-5 age groups. The new marketing strategy should be altered to reach the 1-5 age groups by seeking the new product endorsements from more well-known, successful and appealing role models and athletes. Pricing strategy should also be changed for this segment to increase the brands image and perception. By defending its stronghold on the over-45 segment and selectively targeting the growing younger segments, Reebok can improve its position with relatively little risk.


CONCLUSION


In recent years, a great deal of research has been focused on the new product development (NPD) process, showing that certain common factors separate winners from losers in the NPD race.


Experience shows that successful NPD performances have multiple roots and that winners excel on most success factors Superior performance on just a few factors is not enough. Moreover, attention to quality is as important in NPD as it is in order processing or manufacturing. The following elements contribute to a high-quality NPD process


• Quality of execution--attention to what the company does and how it accomplishes its work--is critical. NPD is a discipline that people and organizations can learn.


• Performance measures generate action and help companies monitor NPD performance and assure the availability of necessary resources.


• The ability to make tough go/kill decisions is critical if companies are to use resources wisely.


• A market orientation helps guarantee that products will have a market waiting for them when they are ready for commercialization.


• A clear but flexible definition of the proposed new product is critical to NPD success.


• Companies must do their homework in the form of initial screenings of product ideas, preliminary market assessments, detailed market research, test marketing or test selling, and pre-commercialization business analyses.


• Procedural flexibility allows the exercise of professional discretion so that NPD processes do not drag on unnecessarily or squander resources.


• Involvement of customers throughout the NPD process minimizes the risk of developing the wrong product, develops lead customers, and speeds market penetration.


All companies that seek to become NPD winners need to define clearly the contribution they want new products to make to their strategic future, assess the degree to which their current NPD performance is up to this task, and identify gaps between current capability and future requirements. When such gaps exist, companies must decide how to fill them or reduce their ambitions. Sometimes a consultant is in a good position to step in at this point to refocus peoples operational preoccupations toward exploration of larger possibilities and to point the way to changes in the corporate climate and procedures. Companies need the support of their staff to succeed. Staff members often resist change until they see potential benefits in changing their behavior--both for the company and for themselves.


Companies seeking NPD improvement also need to recognize the multilevel nature of the process and to respect the highly interconnected nature of the elements that determine NPD performance. Quick fixes or attempts to patch holes cannot succeed. NPD calls for a system view and system solutions.





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Implementing Radical Changes( Senge )

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Executive Summary


This assignment deals with several areas of management. The following points are discussed


Radical organizational change depends upon the firm¡¦s resources, capabilities, its competition and leadership. During the change process, if measurable results are not achieved in six months, barriers will double. For successful change, it is vital to know the customer¡¦s real wants, as well as employee¡¦s belief that obstacles can be overcome and the end result will be to their advantage. The employee¡¦s may be resistant to change, due to apprehensions of assuming greater responsibility and concern of failing to comply with the new standards or rules set.


It is important to build a powerful lead team, communicating the vision, empowering people and encouraging them to move forward. Managers themselves must change first. Innovators or early adopters are the vehicles for change management. Style, staff, skills, and shared vision are imperative for the successful implementation of strategy in any organization.


Custom Essays on Implementing Radical Changes( Senge )


Senge¡¦s learning organization diagram is a guide, with the circle signifying learning being a continuous process. It is orientational and enduring. The key focus for activity is in the triangle wherein we can make changes, but it is short lived. It has popularly entered the systems world, but its whole is not rigorous, even if the parts are.


An entrepreneur takes risk and initiative to make money. They are not forever and are only when they are innovative. Leader is one who rules, guides or inspires others. An innovative organization to succeed needs to have shared values, intense customer focus and concentrate on new trends. The management functions of planning, organizing, leading and controlling should be modified to the five distinct stages of growth in an entrepreneurial business. To face the challenges of an uncertain, fierce and competitive world, the entrepreneurial leader needs to have a credible behavior with thorough knowledge and understanding of the world.


Leadership development has to be evolved with changing times. Character, skills and knowledge are key ingredients which leaders who find deep success and fulfillment often practice. In my organization, Ignazio Messina & C., an 80-year-old Italian shipping company, the senior executives have these traits and act as mentors. They have clear ideas, strong values, take tough decisions and are good at narrating stories of their past experiences. A management development programme based on the theme of ¡§Managing relationships¡¨ is most appropriate for the temperamental leaders in our organization. Leadership skills can be improved with coaching and practice.


Introduction


The world is changing at an accelerating pace. Life society and economies are becoming ever more complex. The nature of work is radically altering. Jobs are disappearing at an unprecedented rate. It is an age of uncertainty. The past is less and less a guide to the future, these are the defining characteristics of the turbulent years ahead. These are the challenges that need to be met by one and all. The speed at which the world is changing demands a matching ability to learn faster. The increasing complexity of the world is changing demands a matching ability to analyse situations logically and solve problems creatively. (Rose C. and Nicholl M.J., 17, pg.1)


Taking this into consideration, in the first part of this assignment, I have discussed about radical changes in an organization and its implications. Given these challenges the strategy to adopt and have briefly touched upon the 7 S framework. I have analysed the Senge¡¦s learning organisation diagram and highlighted its strengths and weaknesses


In the second part, I have elaborated on what entrepreneurial leadership is all about and. his role as compared to a leader. How an innovative organization could be created? Finally drawing attention to the implications.


In the third part, I have talked about the need for leadership development for the senior executives in my organization and I have devised a suitable programme, considering their present knowledge and skills.


1. Senge¡¦s diagram of learning organization presents a framework for thinking about organizations. Critically evaluate the usefulness of this framework when devising a strategy for radical organizational change.


Radical change is an extreme change or reforms by which firms regain competitive advantage after it has been lost. Change depends upon the firms resources, capabilities, its competition and its leadership.


The way we conduct business is undergoing a radical transformation. The winners in the new economy will be those who examine and change organizational structures and approaches to integration.


Companies such as Nokia, Westinghouse, Black & Decker and Merck are incessantly making changes by improving production technologies, creating new products desired in the marketplace, implementing new administrative systems and upgrading employee¡¦s skills.


Implications of change


Broad based change projects are complex and some things will go wrong under the sunniest of scenarios, if only due to Murphy¡¦s Law (Murphy¡¦s Laws, 001). Some of the common pitfalls that can occur are briefly discussed below


1. Failure to deliver early, tangible results. It is said that the half-life of a change project is six months. That is, if you are not showing measurable results in six months, expect your support to halve and the barriers to double.


. Talking about breakthroughs, drowning in details. Even when breakthroughs are achieved on the conceptual level, implementation can be daunting.


. Everything is high priority. Projects fail when priorities are not established early and refined throughout the effort.


4. Old performance measures block change. Fancy words cannot improve on the well know assertion ¡§What gets measured gets done¡¨. If the long established measures are not disassembled, they will continue to drive behaviour and block the changes you have in mind.


5. Failing to connect the dots. Failure to reconcile and integrate competing projects shaped by the methodologists can waste millions of dollars and exhaust an organization.


6. The voice of the customer is absent. The customer¡¦s voice is loud and clear in virtually every successful change effort we encounter. However few organizations systematically assess what the customer really wants.


7. The voice of the employee is not heard either. Winning in a change project requires belief that barrier can be overcome and the end result will be worth the price. Such belief must be widespread if not the outcome will be disastrous.


8. Senior management wants to help, but does not know how. It is our own experience that top management typically means well but sends the wrong signals, often in the context of empowering employees.


. ¡§What is in it for me¡¨ is unclear. People change when the case for change becomes a personal matter. It is only human that when we cannot see what is in it for us, we are unlikely to change.


10. Too much conventional wisdom. Exemplary solutions, even if they are reported in the most trusted business reviews, may not work for everyone. The facts may be different and conventional wisdom can obliterate an organization.


11. Same old horses, same old glue. Failure to form a talented, diverse team representing all stakeholders is a cause of a failure that often shows up too late to fix. (The Price Waterhouse change integration team, 15, p.16-1)


Furthermore people in the organization may be resistant to change for a number of individually oriented reasons. They can have a fear of being unable to learn new skills and abilities or to keep up with the pace of change. They may have apprehensions to assume greater responsibility, accountability or a concern of failing to comply with new standards or regulations.


A strategic plan for change can be formulated based on the following framework


Establish an orientation to change In the business world, change is the only constant. Hence for any organization to have a competitive edge, it needs to be well acquainted with change. The environment should be constantly monitored for any opportunities or to take appropriate and timely action to reduce the impact of environmentally generated changes.


Build a powerful lead team The change leader should be high profile, trustworthy and having sufficient powers to be able to commit organizational resources and make high-level decisions in support of the change process. He needs to be supported by a unified and capable team who can guide the change.


Create the vision The leader needs to conceive a vision that is achievable and should be an inspirational snap shot of a brighter future. The aspirers should gain something out of it.


Communicate the strategic vision in clear, exciting terms and arouse organization wide commitment.


Empowering people to perform It is the need for power that motivates leader and effective leaders use power to empower as asserted by McClelland. For an effective change there is a need to empower those affected by the change to contribute at all stages.


Plan for and create quick wins Due to change programmes being a long drawn affair, people can get de-motivated. The leader needs to create instances where they see results, which are rewarded for their efforts. Thus the leader encourages these people to persevere towards achieving the long-term objectives


Consolidate improvements to enhance changes By rewarding appropriate behaviors and encouraging people to actively pursue improvements, the leader develops an organizational idea of continuous improvement.


Institutionalize the new systems There is a constant need to positively reinforce new practices and encourage people to seek to move forward rather than to fall back on the old practices.


Managers who initiate change are themselves part of the change process. Hence managers themselves must change and be prepared to change in order to have improvements in performance.


Changing the attitude of the individuals can bring about a successful change in an organization. The most effective way to change behavior is to place people into a new organizational context, which imposes new responsibilities, roles and relationships on them. This in turn leads to new attitudes and behaviors on people Moreover, co-ordination or teamwork, commitment and competencies are inter related elements which are prerequisites for corporate revitalization.


Resistance to change is a major consideration for organizations going through a transformation. Research has shown how some people adapt to change more quickly than others. Some people are innovators or early adopters. These people may be or may become, leaders and agents of change. Other people are late adopters or laggards because they are resistant to change. Change management processes are often aimed at these people in order to bring them on board with the rest of the organization. The majority of people fall somewhere in the middle of the adopters and laggards.


The Seven S frameworks as illustrated in the adjacent diagram are useful to analyze the strategic attributes of an organization. The Mckinsey¡¦s consulting firm identified strategy as only one of seven elements exhibited by the best-managed companies. Strategy, structure and systems can be considered the hardware of success whilst style, staff, skills and shared values can be seen as the software. Companies, in which these soft elements are present, are usually more successful at the implementation of strategy (Mckinsey¡¦s 7 ¡VS & Pascale¡¦s adaption Thereof, 00).





Senge¡¦s learning organization


Awareness and


Sensibilities





Attitudes Skills and


and Beliefs Capabilities





Guiding


Ideas





Theory Methods


Innovation in and Tools


Infrastructure


Senge¡¦s diagram as illustrated above is an image depicting the full scope of the work of building learning organisations. The learning circle has no beginning and no end, with learning being a continuous process. The central causality of change is in the circle.


The elements of the triangle are more tangible. The key focus for activity is in the triangle. Both continuously affect and influence one another. Together they represent the tangible and subtle changes involved in building learning organization.


A set of guiding ideas articulated by one generation of management can be changed by another. An infrastructure developed and implemented today can be re-designed tomorrow. Prevailing set of tools and methods can be replaced by a new set of tools and methods. By focusing on the triangle, we can make changes that also imply that it is short lived. On the other hand the deep learning cycle is orientational and enduring. (Senge, P, Kleiner A, Roberts C. Ross, R.B, Smith B.J., 14, p. 4-44)


We are a learning organization however since it is a conservative family owned business, there is not much opportunity to make any drastic changes, but it is a well oiled machine running at full throttle since last 80 years.


We elucidate below some of the strengths and weaknesses of the Senge¡¦ framework


Strengths


„X It is popular and has entered beyond the systems world.


„X It links people with the more mechanical aspects of systems inquiry.


„X It stresses reflective processes, dialogue and experimental learning.


Weaknesses


„X It is powerfully driven on notions of consensus, which some feel reduces the potential for critical reflection.


„X In any formal sense, it does not address power, knowledge distribution and ethical issues.


„X Of itself it is not really a systems approach, it refers back to system dynamics for that, this can be constraining.


„X Its whole is not rigorous, even if the parts are.


„X There is no formal means of boundary setting. (Bob Williams, 00)


To conclude, the Senge¡¦s framework needs to be used as a guide to our thinking. Once we experience the benefits of the model, then we can start introducing the model to peers, subordinates and managers. Understanding the less rational levels in this framework requires some ability for ¡§psychological thinking¡¨ and not all people will be able to utilize the full power of such structure.


Although an understanding of the dynamic complexity of organizations can lead managers to feel overwhelmed and under skilled, such framework provides them with a means of focusing their attention to diagnose and to act on organizational dysfunction. This clarity of focus enables managers to utilize their existing skills and knowledge without getting lost in the chaos of complexity in organizational change. The Senge¡¦s framework encourages managers to retain and apply existing skills in a more focused fashion than they would without the structure of this model.


. ¡§ Your most important job as an entrepreneurial leader is not to find new opportunities or to identify the critical competitive insights. Your task is to create an organization that does these things for you as matter of course¡¨


With reference to academic theory describe and discuss the implications of this statement for effective entrepreneurial leadership


To begin with an entrepreneur, as the definition states is an individual who is the owner of the business and who attempts to make money by risk and initiative. (Friedman J.P., 000, p.). For example, the entire fleet of our company was destroyed during the World War II (1-145). Despite these setbacks, the founder of our company Mr.Ignazio Messina transformed the organization from a traditional conventional ship owner operating initially to Libya and East Africa, Red Sea and Saudi Arabia into a carrier specializing in container and Ro Ro services by extending our services to Tunisia, Algeria, Lebanon, Egypt and South and West Africa.


Of all the management experts in the world, few can claim to have conquered and ruled a significant part of it. Napoleon Bonaparte did with audacity, speed, and skillful planning. That is why I feel Napoleon¡¦s military maxims are relevant to today¡¦s entrepreneur. Napoleon was a veteran warrior, an enlightened sovereign, and one of the world¡¦s greatest generals. In the present world scenario, he would have been an outstanding entrepreneur. ( Kuraoka J., 00)


Joseph A. Schumpeter (188-150), who made significant contribution to the study of entrepreneurship, defined the entrepreneur as an individual, who makes a new combination of already existing materials and forces. Nobody is an entrepreneur forever and are only when they are innovating and make things happen.


The management guru Peter Drucker, describes entrepreneurs as someone who see change as the norm and as healthy. They always search for changes, respond to it and exploit it as an opportunity.


Entrepreneurs start with a vision and generally want something different from life than do traditional managers. They seem to place high importance on being free to achieve and maximize their potential. Six of the main personality traits in an entrepreneur is as illustrated in the exhibit below (Daft, R.L, 000, p. 17)











Leader on the other hand is an individual who rules, guides or inspires others. Yet when the terms entrepreneurship and leadership are applied to the business context there appears to be an overlap and the potential for confusion. At the practical level we can consider an entrepreneur offering leadership and a leader needing entrepreneurial flair.


As illustrated in the below exhibit entrepreneurship and leadership are similar notions and there are conceptual building differences, but also there are clearly still conceptual differences. Leadership tends to be more associated with conceptual building blocks that relate to people (e.g. communication and social skills). On the other hand, entrepreneurship tends to be associated with the personal search for independence and identification of market opportunities. (Perren L., 00)





ENTREPRENEURSHIP LEADERSHIP


Comparison of the conceptual building blocks of entrepreneurship and leadership


The entrepreneurial leaders constantly reinvigorate their organizations. They set the work climate, set practices for seeking and realising new opportunities and engage in problem solving, as well as involve others in pursuing new ventures.


The entrepreneurial leader needs to consciously and deliberately allocate a high proportion of his/her time to those activities, which will generate new ideas, concepts and new ways of thinking about how the organization is currently doing business and the scope to diversify. He therefore needs to have good knowledge on time management and should be efficient in his efforts.


Starting an entrepreneurial firm requires a new business idea, during which a comprehensive business plan has to be carefully designed, by deciding a suitable legal structure and financing options. Tactical decisions like to whether start, buy, or franchise or to participate in the business incubator or to be a company spin-off, or to go global has to be mapped.


Furthermore briefly outlined here below are nine essential characteristics, which are already fairly visible in my present set-up and that, I would recommend to create an innovative organization small or large


Shared values needs to be constantly expressed, reinforced and fostered into its culture. Members of the organization should make real efforts to live those values, rather than to simply have a plaque on a wall.


The whole individual needs to be appreciated of / for everything she/he can bring to the organization. Employees should be encouraged to incorporate things from the personal lives (e.g. hobbies), into the professional settings.


Openness and Playfulness should be encouraged. An open book management policy has to be in place, and promote communication throughout all levels of the organization. Have random meetings and interactions and organize regular events with fun, which should be family oriented.


Celebrate Successes with employee, contractor and customer appreciation activities. There should be a regular schedule of company-wide events throughout the year to celebrate its accomplishments


Company¡¦s history has to be clearly communicated to each new employee especially its origin.


Maintain Intense Customer Focus, like in response to customer requests, develop software for its call center whereby the incoming calls are automatically routed back to the original call taker, so that customers always speak with someone who is familiar with their queries.


Focus on trends, by appointing employee teams on a rotating basis to identify new trends or developments that will directly or indirectly have an impact on the product line.


Incorporate Cross Functional Teams and/or some form of cross-functional training as a regular, formal methodology.


By implementing the above mentioned concepts you may not achieve a world-class innovation like say Dell computers or Amazon.com, however you certainly would not achieve constant, ongoing innovation without them.


Once started, the entrepreneurial business goes through five distinct stages of growth, as illustrated in the below exhibit, with each stage requiring different management skills. The management functions of planning, organizing, leading and controlling should be modified to each stage of growth. (Daft R.L., 000, p.185-187)





The leader¡¦ vision is the driving force in the early stages of development, combined with his personality, shapes corporate culture. This can help attract and retain good and qualified people. Entrepreneurs as we have stated earlier do not have good people skills, but have excellent task skills in either manufacturing or marketing. By the success stage of growth, the owner must learn to motivate the employees or bring in managers who can. This can be achieved by adopting some of the concepts I have recommended earlier. Employee co-operation is a pre-requisite for a company to swiftly takeoff.


With an ever-increasing globalization, it does not make our job easier, but is interesting. An entrepreneur who comprehends this has tremendous opportunities. New global communication possibilities, as well as increasing democracy and participation mean that organizations small or big are now exposed to the whole world and affected by all trends and tendencies. In order to face the challenges of this evolution, an entrepreneurial leader needs to have more courage to express his opinions, more experience and talent for communication inside and outside his company. He must have a behavior that makes him credible. He should have more international knowledge and understanding of the world in order to better comprehend and deal with his own responsibilities.


In order to master todays ever increasing fierce global competition and environment, the entrepreneurial leader needs to have a certain fighting spirit, which one cannot go without it. True to the proverb ¡§He who fights may lose, but he who does not fight has already lost.¡¨


. ¡§You are to devise a leadership training development plan for a team of senior executives. Your plan should give them an understanding of the key theories and concepts of leadership, explaining why these issues are important and presenting the opportunity for them to develop some of the skills of leadership.¡¨


Leadership is the lifting of a mans vision to higher sights, the raising of a mans performance to a higher standard and the building of a mans personality beyond its normal limitations.


-From The Practice of Management, by Peter F. Drucker


Today¡¦s work world is becoming exceedingly complex. Individuals and organizations are continuously challenged to create new value in non-traditional ways. New technologies, the events of -11, the recent state of corporate scandals, heightened market competition, and continuous global pressures on our environment, to name only a few, have dramatically shifted our traditional ways of knowing, working, and being. As a result, leaders of organizations find themselves under the same kind of public scrutiny as democratically elected political leaders.


This scrutiny has raised the bar on leadership. The growing public attention on corporate leaders is redefining our expectations of our leaders. We demand that our leaders step out into the full light of day for review, for critique, and for a higher standard of accountability. And we define our leaders success by measuring organizational flexibility and responsiveness to change.


Where will we find the New Leadership we require? In the information era that we currently find ourselves operating in, the hierarchy has dissolved, leaving instead a highly complex network of work teams that come together and disband on a project-by-project basis. The flow of information required is formidable and the leadership required to succeed in this new context is still emerging. This new work structure is burdened with complexity and ambiguity and requires emergent capacities to effectively navigate the challenges.


Leadership Development has to be evolved with changing times to continue to understand current leadership development trends. Any such programme has to be based on developing the three areas of leadership i.e. character, skill, and knowledge, as illustrated in the below exhibit





This model defines the leader¡¦s character, values, and other personal qualities as the basis for leadership success, and suggests that real leadership comes from a focus on the qualities that characterize the person who is the leader. Competencies and knowledge are unarguably critical, but it is the unique character of the leader that makes the real difference. Those leaders who find deep success and fulfillment in their roles often practice it. It is also considered the key ingredient to weathering and even thriving in times of adversity. (Mamprin A., Wyer K., Penrose S., 00)


Now coming to the question of who are the senior level executives? As Michael Walsh, the late CEO of Tenneco, once put it, ¡§Every person in a key position has to see himself or herself as a mini-CEO. They have to conceptualize what has to be done in the same way the CEO has. Then it cascades¡¨. (Sherman, S. and Tichy, N.M., 1, p.8) At the end of the day, leadership is about having smart ideas and getting them implemented well.


The present chairman and owner of our organization, Mr. Franco Messina¡¦s strategy has been to develop Line managers and Operations managers based in our head office in Genoa and Regional managers, mostly master mariners deputed abroad to be these mini CEO¡¦s. These leaders who are highly experienced and skilled know that the game is for everyone to see opportunities, and seize them.


Some of these senior managers infuse into the junior level managers to think that they are the company¡¦s eyes and ears. Besides doing the day-to-day jobs they expect these junior managers to look at what is out there, what we could be doing, what are the best opportunities, what will have to change within our company and within our business units?


These proven senior executives do the teaching. They have a teachable point of view about running, streamlining the business, as well as about leadership. Most of them being ex-Ship Captain¡¦s, they are avid learners and draw from their pasts and reflect on their experiences to develop lessons for the future. They personally act as mentors and role models. They share the mistakes as well as the victories.


Moreover, these leaders have clear ideas of what it takes to win in the market place and how the organization should operate. They keep upgrading their ideas to keep abreast to the changing circumstances, as well as help others to develop their own ideas. They have strong values that everyone understands and lives up to. Their energy levels are very high, consequently energizing people through ever-greater modern day challenges. They are willing to take tough decisions, and they encourage and reward others who do the same. Since having been sailors and interacted with innumerable people, they are able to communicate their visions and ideas by narrating stories of their personal experiences. Thus they drive their messages home and with words and actions that engage and excite followers. (Tichy, N.M., and Cohen, E., 00, p.-7)


All the senior executives in our organization cannot be put in the same boat. There are exceptions and some of these leaders have certain limitations and idiosyncrasies, which needs to be dealt with. All the senior managers are of Italian origin and it is a well-known fact that they are highly temperamental. This has an effect on the staff turnover in some of our offices abroad (most of our offices in the African continent), as well as in customer relationships.


There is more than 1000 staff employed in the Messina organization in Genoa, Spain and France. Another 500 are working with the agency network. Messina business is about people and thus I have selected most appropriately a management development programme on the theme of ¡§Managing relationships¡¨ for the senior managers worldwide. It is a general feeling that the management staff needs to be improved. The experience of developing senior managers points to the advantages of a behavioral approach for all levels of management.


Our company is task focused, so I have devised a short course programme of three days. This is deemed to offer more potential for behavioral improvement and increase personal confidence, while retaining the flexibility of local delivery at key points around the globe.


The majority of the short courses designed for about 15 senior managers will have to be held in Italy close to our head office in Genoa for the managers based there. For the outstation executives comprising 5 managers, to be organized at an exotic location like Cape Town, where we also have an office. A specialist firm of external consultants, selected by means of a rigorous competitive tendering process, will deliver the course.


The course will concentrate on behavioral skills, picking up on 60-degree feedback completed prior to the course. This is a review process, which extends to include a manager¡¦s peers, subordinates and other colleagues whose roles impinge on the subject¡¦s. As well as contacts from external organizations, notably customers, other business associates like in our case, the port authorities, feeder operators, etc. etc. (Fee, K., 001, p.148)


Such performance review becomes more an open discussion and it opens up potential for organizational development. Although such review systems can be expensive to implement, it stands more chance of being successful, as it caters for a wider range of learning style preferences.


At the beginning of the programme, each participant¡¦s behavior will be analyzed via a videotaped group session. Then there is some flexibility and individual choice about what exactly to focus on. The courses will be very participative, including little theoretical input, and more on establishing and maintaining good interpersonal skills. There will be a one-day follow-up clinic, which will help to evaluate and consider the leader¡¦s opportunities for further development.


After three months another programme can be complemented to develop negotiating and influencing skills and managing diversity, and other courses addressing operational and procedural issues.


The courses will be evaluated at a number of levels, from reaction sheets completed at the end of each course, to post programmed interviews with the managers, their peers, subordinates, customers and business associates. Such courses should be sound and a good investment and effective in meeting the objectives.





Successful companies like ours understand that not everyone can be an Olympian, but through training and encouragement, and by offering opportunities to exercise leadership, they make the most of every player. Some players have natural talent for coming up with good ideas and getting other people to help carry them out. Others have to work at expanding their own horizons, thinking bigger ideas and persuading others to go along.


But such companies know, that like athletes, no matter how good or bad a person¡¦s inherent leadership skills are, they can be improved with coaching and practice. And they systematically work at it.


Indeed, to develop a leaders edge, managers at every level need to have the same kind of trust in their knowledge of the business that they have in their opinions of sports teams. With that trust comes the ability to clearly delineate problems, present solutions, and challenge the experts on the executive team with conviction. There are leaders-in-waiting in every organization. All they need is a chance to show what they can do and a process to help them do it.


Bibliography


Rose C. and Nicholl M.J., (17), Accelerated Learning for the 1st Century, Judy Piatkus , London


Murphy¡¦s laws, (00), Murphy¡¦s laws and corollaries,


URL http//dmawww.epfl.ch/roso.mosaic/dm/murphy.html ( 7.1.0)


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University of Leicester, (00), 606/7 Implementing Strategies, Learning Resources, Cheltenham.


Senge, P, Kleiner A, Roberts C. Ross, R.B, Smith B.J., (14), The Fifth Discipline Fieldbook- Strategies and Tools for Building a Learning Organization, Doubleday, U.S.A.


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URL http//users.actrix.co.nz/bobwill/evalsys.pdf (0.1.0)


McKinseys 7-S and Pascales Adaption Thereof, 00


URL http//www.chrisfoxinc.com/7SAndPascale.htm (1.1.0)


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New York


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URL http//www.plronline.com/members/ent.htm (14.01.0)


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URL http//www.managementandleadershipcouncil.org/downloads/r6.pdf (1.01.0)


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URL http//www.banffcentre.ca/programs/leadership_compass/pdf/LC8_evol.pdf (14.01.0)


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SHORT CASE SUMMARY Nike, Inc. (50-671-645, www.nike.com) is the worlds #1 athletic shoe and apparel seller. Nike currently employs 0,700 employees, with total sales of $8.78 billion. Nike and the athletic shoe industry have evolved into one of the most competitive market in recent years. But, analysts believe that athletic shoe sales will slow down over the next few years. The slowdown will come with the change in consumer trends. For instance, the younger market is beginning to buy more casual shoes and work boots. Another reason for the slowdown is that people are buying more medium priced athletic shoes and not going for the high price brand name shoes. As a result, this is bringing Nike a lot more competition to surpass. In order for Nike to remain on top of the athletic shoe industry they must establish an exceptional global strategy. If Nike penetrates the global market successfully than this will give the company an overall competitive advantage. Nike doesnt only sell athletic shoes, but a wide variety of sporting goods and clothing. They also design, develop, and market high quality active sports apparel, equipment, and accessory products. Their huge lines of products are designed for just about every sport in existence. Their products are made for men, women, and children of all ages. Nike has 0,000 retail accounts throughout the U. S. using independent distributors and also has contracts with 110 other countries. The company also has agreements with Internet companies and subsidiaries. Nike, Inc. has many retail outlets around the world, including their famous outlet NIKETOWN located in major cities. NIKETOWN gives customers the experience to become more educated on the companys goals and objectives for their products. The store educates its customer while at same time entertaining them too. This store gives customers a chance to become more brand loyal to Nike, Inc. Over the years Nike has gained an enormous amount of consumer awareness that they have eliminated the company name from all other products. The swoosh logo is automatically associated with the company name by just about anyone in the world. The meaning for Nike has lived up to the companys expectations. Nike means the goddess of victory, which is exactly what the company has had since its creation. HISTORY A competitive runner, Phil Knight, incorporated Blue Ribbon Sports in Oregon in 168. Blue Ribbon Sports was the first to receive the swoosh logo, but changed its name to Nike in 178. Nikes research and development department used technological expertise to produce several different athletic shoes, which changed the whole outlook on the industry. After being in business for five years Nike, Inc. had a 44% annual growth. Shortly after Nike didnt pay attention to the sale of aerobic shoes, which hurt them slightly. International operations were the main focus for Nike, Inc. in the early 180s. An excess of inventory in 185 caused Nike to reduce prices and lose manufacturing contract in the Far East. This pushed Nike from the top spot in the market. As a result, Nike had to lay off 50 employees in 186. Nike began their climb back in 188 with the introduction new advertising strategies and the development of the new footwear. The main focus was on the customers wants and needs their purchase of Nikes athletic shoes. In 188, Nike bought a subsidiary called Cole Haan based in New Hampshire. The company Cole Haan cost Nike $64 million, but was worth every cent. The Cole Haan subsidiary manufactures casual footwear, something Nike was lacking for years. This purchase helped Nikes casual footwear operations grow 16% within the year. In 10, Nike, Inc. purchased Cole Haan Company Accessories, which distributes top quality braces, belts, and small leather goods. As Nike grew in 10 they opened their first retail store NIKETOWN. In 11, the company purchased Tetra Plastics, which was used for the development of the air sole shoes. In 1, they then bought a cap-making company named Sports Specialties. Then in 14, Nike introduced a new line of air sandals called Air Mada. Nike acquired Canstar Sports, Inc. the world largest hockey equipment manufacture in 15. Throughout Nikes history their international sales have lagged due to strong overseas competition. COMPETITION Nikes major competitor is Reebok, which also designs and develops athletic shoes and apparel. These two companies compete in the U.S. and internationally. Each company uses their own type of advertising strategy to reach their target customers. Many of the advertisements feature athletic stars and commercials that relate to the customers. Nike and Reebok are major competitors, but also have to worry other national and international competitors. Nikes other competitors are Callaway Golf, Converse, Deckers Outdoor, FUBU, Fila, Fortune Brands, Fruit of the Loom, Hi-Tec Sports, Levi Strauss, Nautica, New Balance, Polo, Puma, Rawlings, Rollerblade, Russell Corp., Sara Lee, Skechers, Spalding, Stride Rite, Timberland, Tommy Hilfiger, Wolverine, and Adidas. In Europe the competition is growing and is a major area for Nike to strike. Nike is second in sales in Europe, just behind Adidas. International sales for Nike have been increasing but are losing other opportunities by competitors signing large contracts with sports figures and teams. These contracts are giving competitors an edge nationally and internationally. In 18, 1,00 jobs were cut due to falling sales and the reduction of costs in Asia. CHANGES IN THE ATHLETIC SHOE INDUSTRY The growth of athletic shoe and apparel industry is the direct result from consumer changes for the better. The baby boomer generation is becoming more health conscious and living much more active lifestyles. Along with Generation Xs interest in living a healthy life. Also, there is more women playing sports than ever, which means more shoes to buy. The more sports these kids and young adults play throughout their life the more accessories and equipment they will need to compete. Nike gives their customers the feeling of self-confidence and the advantage over their competition. The only problem Nike has is the aging adults who do not participate in any sports or fitness programs. Adults aged 5-55 only one in five exercise up to two times a week. Also, the growing obesity problem that is affecting Americans more and more each year. Nike has established many contracts with international countries for manufacturing their products. Even with changing exchange rates and tariffs Nike feels its still cost effective to manufacture their shoes internationally. Another reason for these contracts is the labor costs and benefits, which makes it cheaper to manufacture the products. There are some problems with the idea of these types of contracts. For example, some countries are becoming less interested in manufacturing shoes and starting to produce their own electronics. There may also be problems with labor situations, shipping and unreliable quota systems. Nike must also consider the many legal restrictions that the global market may pose. INTERNAL FACTORS Nikes research and development expenses for 1 were $7.50 million, which only represented 1.1% of sales. R & D in the athletic industry are based on innovation and does not cost a company a lot of money on equipment. Nike continues to depend on developments to modify its products from competitors. The company presently sells roughly 00 models of athletic shoes in 00 styles for 5 different sports. Nikes target market for their shoes are males and females between 18 and 5 years old. The product are altered and improved frequently. Nike distributes one new shoe style every single day. Nike advertises its products in a variance of ways and targets its ads to particular groups or types of people. The company continues to disburse advertising cash on TV ads during professional and college sports events, prime-time programs, and late-night TV programs. Many or most of their ads feature professional sports figures that are role models for Nike customers. Advertising cost Nike $78. million in 17. Along with endorsement fees of $100 million for those sports stars everyone loves. Nike has been criticized for its social responsibility throughout its lustrous history. Nike was known to have 6,700 Indonesian employees from Asia working 100-degree factories. These factories were poorly vented and the workers were forced to inhale toxic fumes while working. There was also evidence of abuse by Nike a factory manager on Vietnamese production workers. Nike has developed many programs to show their improving social responsibility issues. For example, Nike and the Boys and Girls Clubs of America began a program called Kids Movement. This program teaches young people about fitness awareness. Nike, Inc. also provides funds for the Childrens Television Workshop for literacy TV programs. The company firmly incorporated the N.E.A.T. (Nike Environmental Action Team) in 1. This program was implemented to maintain environmental initiatives by recycling old shoes and utilizing them to make new shoes. Nike, Inc. happens to employ mostly health-conscious corporate employees. About 40% of Nikes employees are under the age of 0. The corporate campus helps apply this type of culture with the benefits it offers their employees. For instance, the company has wooded areas, running trails and fitness centers for their active employees. This is a major part of Nikes corporate culture, which then trickles down to Nikes management styles. Nike lets managers keep lines of communication open and lets them determine their own decision making. The company also offers their employees something called LifeTrek. This is a benefit and compensation program that gives their employees a sense caring and trust. THE FUTURE With the increase in competition and limit of growth the U.S. athletic shoe industry, Nike is still slated to be a major leader in the market. The advertising and innovative marketing in the industry should still leave it extremely competitive. The only problem that Nike worries about are customers becoming less brand-loyal and buying cheaper athletic shoe brands. Nike is trying to make the point that it is worth spending more money on better quality made shoe, than buying a cheap shoe that will only last a little while. One major area that brings unlimited opportunities to Nike is the international market. In the United Sates, there are 4 people for every pair of Nikes, France has 11, Japan has 50, and China has 11,81. These figures show that the greatest growth for Nike is overseas. Word Count 1706





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