Monday, September 30, 2019
Human Linguistics and the Importance of Second Language Learning in Modern Living Essay
Language is among the most basic necessities for a person to live. Be it thru oral or written communication, it is inherent in every person to connect with the world. As the world becomes more complicated with all the things that are written about speech, language, and communication in general, it reveals itself as an indispensible part of human life. Now, it implicates more needs than the usual. The basic need for understanding and being understood has branched out to issues about global interconnectedness, political and economic dealings, and cultural relations among others. And it continues to take on several roles in nation-building and for the promotion of social mobility and employment. The advent of technology only makes it even harder for people to stop communicating with the rest of the populace. There is a wide variety of languages in the world right now. â€Å"Biologists studying communication among living beings in general [may think that]â€â€all are relatively minor variations on the single theme of Human language†(Anderson, 2005). But from the point of view of a linguistics expert, the variations in types of sentence construction, pronunciation, and other rules governing languages are very important differences that imply causes yet undiscovered. These examples delineate the function of the biologists’ view of communication and the linguists’ of the same process. It is true indeed that there are more than one ways to look at something but seeing the communication process through different lenses provide more a single way to understand the phenomena. In doing so, people are able to form a holistic view of the process of communication and how it affects human life. The Role of Human Language At this point, language takes on bigger roles which may affect greater humanity. From simply being a medium of sharing how people think of or feel as of the moment, it has become rather an important part of creating human identity. And with the individual identities created by language, it becomes the precursor in creating a national identity (through the shared identities of many individuals living in the same geographical location). People might begin to wonder: why human identity? These may be two separate ideas but in fact they are closely related to each other. Language is directly related to the person and his country of origin. We were given the basic knowledge that those who speak Chinese came from China, people who speak Russian are from Russia, and so on. When our ancestors devised names for the different languages around the world, the name of the country speaking that language was used to identify the language spoken. It might not have any implication during those times and was only done to make things easier for people to remember. But now that people have taken the time to analyze the effect of this naming convention, language has indeed become instrumental to creating identity for people. The prevailing notion of people â€Å"’having’ a language, which is equated to ‘belonging’ to an origin group†(Urciuoli, 1995) is perfectly logical. But then again, because of the proliferation of foreign language studies, specific languages cannot be exclusive to just one place or country any more. In particular, English is not only for the people in England or America. English varieties have come about which decentralized the use of the language. While language origins can still be identified, other nationalities already have the capacity to speak the same. This concept will be discussed further in the latter pages. Human Beings in Terms of a Speaker of a Language Unique to Them Being able to speak a language means mastering the abstractions of the language codes. Semantics, as the study of signs, is an important tradition of thought in communication theory†(Stephen W, 2008). Often times, the theory of semantics are used to explain why words are not really the images that we think of but are rather representation of truth. â€Å"The meaning is arbitrarily assigned†(What is Language, 2006). Therefore, the speaker of a particular language is a person who was able to understand and make sense of the abstraction. This abstraction contributes to the creation of the person’s perception and language skills. And if you will notice, the primary language that a person learned is vital in the subsequent languages that he will study. For example, native Korean speakers might be able to study and speak the English language but often times they are not able to eliminate the â€Å"e†sound after every English word they say. This only proves that the prior language learned by a non-native English speaker is able to influence subsequent languages studied throughout his lifetime. Notwithstanding the presence of Language Acquisition Devices, a person may or may not be successful in learning a new language but if he is then the prior influence will be evident in the newly learned language. The Role of Second/Foreign Language Foreign language becomes even more important now that the world is geared towards globalization. With much concerted effort to adopt a common language, which is English as of the moment, all other countries strive to educate their citizens in communicating using that foreign language. â€Å"Marshall McLuhan was the first person to popularize the concept of a global village and to consider its social effects†(Stewart, 2010). Those who fail to appreciate this effort do not acknowledge the fact that in the global village, the barrier-less communication paves the way for three phenomena: 1. Global information dissemination for improved understanding between nations. 2. It is also the appreciation of cultures other than your own. 3. Aids in the self-actualization of the second language learner. The first phenomenon is plain and simple. If you are going to look at the job of the ambassadors, it looks as if it’s all prestige and fun. In fact, it is predominantly driven by hard work. It is extremely difficult to make great relationships with other countries because there will always be a reason to be skeptical of something you are not familiar with. That is the reason why ambassadors find time to learn the language of the countries where they will be assigned: because insisting on speaking a different language might take its toll upon the relations of the ambassador’s country to the country of assignment. The second phenomena are also something simple which has profound implications at the end of the day. Reasons for Speaking Foreign Language Using the logic that language is culture, learning another language is therefore a way to expose one’s self to another group of people’s way of living. As you immerse yourself in the language, the culture goes with it and in a matter of months the foreign language learner will know whether he likes and would want to continue studying that foreign language. The satisfaction As of today, learning a foreign language has become a necessity. It doesn’t have to be a â€Å"dominant†language for it to be learned by anyone. Although English has become a very popular language to study (considering the political and economic influence of the United States to the rest of the world), studying the language of a small country with not much of an influence to the world can happen because of various reasons. For one, travelling often to a particular place would make a person want to study the language of the person. Or probably, a person who plans to study or work abroad needs to learn the language of the country first before he is cleared at the immigration office. And still, there are underlying reasons behind this. It is probably caused by the need to communicate in the native tongue of the people in that country. Communicating through their native language lends them the feeling of being part of the place. Whereas, not knowing the language alienates the personâ€â€it becomes obvious that he is an â€Å"outsider†because he doesn’t know how to speak the language. Another reason for studying a foreign language is to increase the cultural capital of a person. This concept was proposed by Pierre Bourdieu, a French sociologist. He argued that â€Å"these ‘advantages’ stem from the institutionalization of ‘criteria of evaluation’ in schools†¦ which are favorable to a particular class or classes†(Bourdieu, 1977). It must be noted that a couple of decades back, learning a second language is exclusive for those in the upper class of the social triangleâ€â€being able to speak another language becomes a status symbol. But that was true in the past years. Nowadays, there are many ways for a person to learn another language without having to spend a lot of money. One way is by subscribing to free online language tutorials. Nevertheless, even if this language skill is already available to most people, the concept of cultural capital is still there. And the person who knows more languages has the advantage. A rather intrinsic motivation for learning a new language is the appreciation of that particular language and the culture that is associated with it. Adopting this kind of perspective will make the process of learning a language enjoyable and â€Å"less results-oriented†(Tender, 2008). The motivational approach of this kind of learning allows the second language learner to appreciate the value of the language prior to learning it. It is rather encouraging for the person to learn the language continuously because the benefit is achieved intrinsically. The Role of the Second Language Teacher Apparently, there are â€Å"benefits and advantages to those who take the time to explore the language of a culture different than their own†(What is the Importance of Learning a Second Language? ). And whatever these benefits and advantages are, it is the duty of the second language teacher to make his/her students realize it. The role of a second language teacher takes on a support role which motivates the student every step of the way. By doing so, the students therefore realize the importance of what they are doing and will adopt a learning mechanism in which the rewards are rather intrinsic. It is also not enough for the second language teacher to stop at teaching grammar and syntax rules. More important than teaching the language is teaching them why they wanted to study the language in the first place. Often times, those teachers who elicit a compelling need for their students to study the language are the ones who are most successful with their teaching career. They do not stop at the superficial level of teaching a language but rather delve on the subjective inferences of asking the question â€Å"why†. Also, like any other teacher, a second language teacher is an agent of change. The author says that these people are agents of change because they are able to arm the students with the right kind of knowledge to face the global village. A person who knows how to speak a language other than his native tongue is able to communicate more effectively. And by doing so, they are also able to spur changes in their surroundings. Suppose that a foreign exchange student is well adept at using the language of his/her host country. That student is empowered to make a difference in the lives of his host family and host institution by sharing his thoughts and ideals through the language used in that place. And he/she will only be able to do so if his/her foreign language teacher was able to act as an agent of change to the student. As a final word, different teachers can assume different roles in different situations. It may be that at one point a teacher is task-oriented (meaning the teacher is focused on how each activity or lesson will improve the language skills of the students). Another is that the teacher can also be a counselor or a colleague which are both supportive in nature. Their mindset is to join the students along the way and help them as if they are both on the same ground. Lastly, the motivational teacher is focused on how he will be able to create more value out of the student’s learning experience. Often times, the motivational teacher does not teach the language concepts in isolation with the benefits and necessity of learning such. These two ideas are intertwined to create more significance for every lesson. As of today, we are still on the lookout for teachers who are able to balance the different facets of teaching roles. But â€Å"generally, all the teachers are preoccupied with task-related functions, treating the aspect of motivation and interpersonal roles as a useful but not an indispensable addition†(The role of the foreign language teacher in the classroom  the teachers†beliefs and role behavior versus the students†expectations. , 2002) Conclusion Ultimately, language will be an important part of our lives. No matter what differences will come about in the upcoming years it will continue to become the medium by which people are to express their thoughts and ideas. Moreover, this will significantly increase the need for people to use language in nation-building purposes and for the betterment of the society where they belong to. Bibliography Anderson, S. R. (2005, April). How Many Languages are There in the World? Retrieved July 10, 2010, from Linguistics Society of America: http://www. lsadc. org/info/pdf_files/howmany. pdf Andrea A. Lunsford, j. J. (2001). Everything’s an Argument. Massachusetts: Bedford St. Martin’s. Bourdieu, P. (1977). Cultural Reproduction and Social Reproduction. New York: Oxford University Press. Davis, W. (1952). Practical World Language. The Science News-letter , 10-11. Met, M. (n. d. ). Improving Student’s capacity on Learning Foreign Language. Phi Delta Kappan , 214-218. Mulford, G. W. (1989). Semantic Processing for Communicative Exercises in Foreign-Language Learning . Computers and the Humanities , 31-44. Rampton, B. (2002). Ritual and Foreign Language Practices at School . Language in Society , 491-525. Stephen W, L. K. (2008). Theories of Human Communication. California: Thomson Wadsworth. Stevens, G. (1999). Age at Immigration and Second Language Proficiency among Foreign-Born Adults. Language in Society , 555-578. Stewart, B. (2010, March 13). Marshall McLuhan Foresees The Global Village. Retrieved July 9, 2010, from Living Internet: http://www. livinginternet. com/i/ii_mcluhan. htm Tender, A. M. (2008). About The Linguistic Constitution of Social Space: The Case of Estonia. TRAMES , 151-182. The role of the foreign language teacher in the classroom  the teachers†beliefs and role behavior versus the students†expectations. (2002). Studia Anglica Posnaniensia: international review of English Studies . Urciuoli, B. (1995). Language and Borders. Annual Review of Anthropology , 525-546. What is Language. (2006, August 31). Retrieved July 9, 2010, from Language and Culture: http://anthro. palomar. edu/language/language_2. htm What is the Importance of Learning a Second Language? (n. d. ).
Sunday, September 29, 2019
Development Finance
Financial development is the basis of every country development when ever we talk about the developing countries of the world. Every body must say their financial strength is one of the factors for their decreased development with out financial heath of the country. It is unable for any government to put forward the development plans which after words brings good results in the financial heath of the country.There are so many countries in the world to talk here Africa is one of them where the financial position is very low also some other countries like Sudan, Somalia, and many more who are just at the developing countries list. One of the main things in increasing the financial growth of any country is the economic growth through globalization of capital and the cross border trade. Trading with such countries and provision of foreign aid to such countries which are low in financial position in the view of USA government is the basis for their development that’s why today more work done for increasing the financial heath of the low developing countries.In the year 1980s and 1990s, it was noted that due to some reasons the financial development in many countries remains low because of the financial markets crisis. These crises were due to the changes in investments and due to the government crisis in those countries and the lack of international standard financial institutions hat are capable of attracting more investment opportunities from the foreign investors. For increasing the growth of economy, foreign investment in the country plays a major role.Due to the increase of foreign investment the export position increases or in other words low financial position is due to the low banking and financial standards in the country. Going to talk about the financial health of Africa as an example as every body knows the financial development of Africa is very low as compare to the developed countries of the world, but now the developed countries are playing a good role to develop such countries as Africa to put forward the development plans they have provided foreign aid to such countries in order to full fill the development plans and open the routes of trade.Third World Countries, Why they are in List of third World?Third world countries as the name says are those countries which are low in economic growth and the less developed countries of the world during the French revolution. The French demographer Alfred Sauvy named these countries as the third estate because these countries are in the list of those countries which are not of high technologies and less industrialized, like the other countries of the world. The reason behind is such lack of financial growth is the lack of funds.â€Å"The concept of the â€Å"Third World†developed after the Bandung Conference of Colored people in 1955; a conference greatly influenced by Communist China and after it began feuding with Russia (The Sino-Soviety Split). Its main idea was that a third power bloc had to be created that would be distinct from the capitalist, industrial world (First World) and the Communist, Industrial world (Second World). The French Economist Alfred Sauvy popularized the term â€Å"Third World†to refer to these countries. â€Å"Third World†was also used in the West to refer to countries receiving foreign aid†.The third world countries are low developed countries in the world because of: ·Ã‚        There low gross national product, ·Ã‚        Poverty reasons, ·Ã‚        In terms of human development, ·Ã‚        In terms of press freedom, ·Ã‚        The lack of financial institutions, ·Ã‚        Industrialization, ·Ã‚        Technology, ·Ã‚        Lack of foreign investments.List of third world countries includes many coun tries in which large number of countries belongs to the continent Africa ·Ã‚        Malawi Eastern Africa ·Ã‚        Somalia Eastern Africa ·Ã‚        Congo Middle Africa ·Ã‚        Liberia Western Africa ·Ã‚        Nigeria Western Africa ·Ã‚        Ethiopia Eastern Africa ·Ã‚        Zambia Eastern Africa ·Ã‚        Afghanistan Central Asia ·Ã‚        Eritrea Eastern AfricaBecause of the low financial development issue basically regarding to the countries of Africa, which are east west and in middle Africa so it is important to talk about the country in Africa.Somalia †¦Country in Eastern AfricaSomalia which is situated in the eastern part of Africa a country which is not to be own by the basis of government as which is in the other developed countries of t he world. The country’s borders are also to those which are also included in the less developed countries of the world, the development related to the financial growth of the country is so low as it has been seen that there were fight existed for many years in the country which didn’t brought any government and made the country low in every financial step.Because of no government and management powers the country has not the idea of trade finance government rules institutions for investments and so on. The country has been the living place for many ethnic group in past but the large number of people n the country were not belong to Somalia French British and Italians were also came to Somalia in the 19th century.However it is to say that the 1880s period for Somalia was taken as the good period for development. After the entrance of Italians and British people there the claims on the land started in this regard first claim was given by the British as the British Somali a land in 1886. After words the other part of the land in southern area claimed by the Italians as the Italian Somalia land after the second world war the British Somalia land become independent and again the proclamation was given in the 26th June 1960. After words there were many claims on the country's land had been taken place which from the very starting put Somalia’s development at the back.After the whole fighting about different claims by many countries on Somalia and the internal war a regional government was formed there this was not in strong financial condition an earth quake, which arose in the Indian Ocean and followed Somalia too. This was the natural disaster of 2004 and due to tsunami large numbers of people namely 300 were killed and many of the villages were destroyed. In the year 2006 the civil war begins in Somalia, which has stopped the large number of development in the country.Somalia became the victim of earth quakes and different diseases like aids a nd hunger in times of civil war and child mortality are the reasons which left the country too far away from the developed countries of the world. Because of these so many reasons the financial health of the country is still not in the position to define however the developed countries of the world are playing great role in increasing the financial development in the country, but the think lacking is the natural aid also they have lack of so many resources to develop the country.Financial Development in SomaliaDue to war and hunger problems it is hard for any one to note down the financial growth o f the economy in 2005 the GDP growth was 2.4% in Somalia which was estimated by CIA. Main exports items belong to live stocks, which are bananas sugar maize fish and sorghum and the small industry of Somalia based on the agricultural products.Private Sector Development in SomaliaThe private sector development in Somalia is so hard to explain it was so worse in past but now it is to say th at it is getting developed day by day. The private sector development includes business policies, the financial sector policies and institutional policies, but the thing which is required is the skilled people who are able to put forward such development policies and convert them in the basic development of the country. The basic idea of private sector is to develop the relationship of the country with other countries of the world. It includes:l The relationship development good relations with the neighbor countries in order to increase the export import conditions.l Attracting the foreign investors to make investments in huge amounts to the country which will ultimately results in the development of the countryl The association formed which is the Somali foundation services association the private sector includes the responsibilities to increase the development of this association in order to increase the business issues and development of business plans with the other business companies out side the country also.Development of Banking Sectorl The private sector is working to form a firm which is capable of doing the work of central bank development the development of central banking in the country policies of the bank guidelines the rules and regulations of the bank the provision of funds and bills for the allocation o small businesses there advancement and the increase of organizational structure of central bank dealing with the problems   of financial and accounting controls the private sector is monitoring the role of central bank by the appointed firm.l Because of fisheries livestock’s are the basic items of export so the private sector is getting developed to increase the development of these sectors in order to make bounce in exports and the financial health of the country.l The private sector is now developing such institutions under the government provision of funds for the training of students in the mana gement business finance accounting scientific official works administration works engineering works and medical too. This includes the development of women too, including the women trainees in order to enhance the development of the country every body should play a role otherwise the development would not be with high sense so the development of women in the country is also necessary for the development of the country.l The private sector is working for the development of the central bank of Somalia and the financial sector too. Training and orientation programs for the workers through which increase and encourage the idea of increasing the financial growth of the small and large business which in future results in the development of economy an financial development of the country.So it is to say that the private sector development is going on in the country but not with high sense because of lack of capital and other resources the country is developing low but it is expected th at the private sector will be strong in future to perform more and big operations.Somali Institutional and Capacity Development ProjectThis is the project which is based on the institutional development of Somalia. The lack of institutional and organizational development leads the country with low growth of the financial sector the association is formed for facing the challenges of low institutional developments to raise funds for such institution and increase the organizational structure in the country. The project is made to develop the Somalis human resource management program for this reason the project is made to develop the management training programs for the increase of human development and the increase of administration skills in the human.In 2006 this project SICAD has achieved many goals related to the institutional development, which were the primary objectives, and the help of this project achieved these in a very smaller period. The increase and advancement of public private relationship this project team is working with the university of Hargesia the project is also working as the team which is capable of evaluating the skills among public and the motivational government health programs in order to make public aware of every disease its danger for health and the cure this working is based on the control of HIV AIDS in Africa.â€Å"The PRSL Program has a two-pronged approach to working towards the reduction of poverty – more upstream, at advocacy for MDGs and poverty analysis/monitoring and, more downstream, at community driven recovery. Human Rights, Peace-Building, Gender, HIV/AIDS are addressed as cross-cutting issues†. (Poverty Reduction and Sustainable Livelihoods(PRSL))African Development InstituteThe African development bank is performing the function as an institute to enhance the training program among the general public the capacity development which includes the development of organization institution the society develop ment in order to increase the role of general public in the making of financial condition better for this reason the bank is performing the function of there is agreement that macroeconomic stability is critical for the growth of financial sector services. â€Å"Countries should adopt appropriate macroeconomic policies, encourage competition within the financial sector, and develop a strong and transparent institutional and legal framework for financial sector activities. In particular, there is a need for prudential regulations and supervision, strong creditor rights, and contract enforcement†. (Financial Development in the Middle East and North Africa)It is to say that the financial sector development is responsible for the development of economy as a whole those changes which are not in the control of any one only the financial sectors brings such changes for the better health of the economy with out such developments it is hard to say that the economy is developed and if the economy is underdeveloped it means the country financial sector is underdeveloped it is not so strong to perform the functions as the financial sector of developed countries of the world. This development for African countries is also very essential like in Somalia because of so many crisis the country's economy development rate is so low as compared to the other countries of the world.Banking Sector Development in SomaliaAs the position of economy in the past years was so worse so one cannot easily judge the banking sector development in Somalia it needs the full concentration on the history of the performance of Somalia national bank which performed the functions of commercial banking system in the past. After the mergers and financial development the Somalia banking sector divided in to two major categories named Somali commercial banks and the Somali savings and credit banks. After this division the Somali national bank controlled its workings to the functions of central bank only.In the view of international monetary funds, these are the basic things fore the financial sector growth and development. ·Ã‚        Monetary sector ·Ã‚        Regulation of policies ·Ã‚        Non-banking financial sector policies ·Ã‚        Development of institutions ·Ã‚        GDP and GNP measurement tools.What of the role of the international institutions? Here again, views varied from those who urged the World Bank Group to stay out of Somalia to those who were desperate for aid agencies to come in. Some believed that Somalia needed concessional loans, others that Somalia should never take out a loan againThe lack of private sector development in Somalia is due to the lack of security and law enforcement agencies. There the fights and political instabilities brings so many problems for the banking sector to develop also as the banking sector o f every country requires the full concentration on the development of institutions and public awareness programs, but Somalia is lacking in such capabilities the parties conflicts and other conflicts makes the banking sector so weak as the foreign investment is unpleasant in this sector.The financial institution today requires the large number of financial security from the government and the security for foreign investments. These are lacking in Somalia so no body wants to invest there whose currency rates are low and the economy is less developed. In the view of many peoples the government should work to encourage the development of those sectors, which are associated to public also.How to Improve Development Strategies?The thing which wants a complete discussion here is not that how Somalia developed how it survives within the developed countries but the thing is this which one is lacking which thing is important for the development of the country and which is not, which sector o f the country needs high development and which sector wants low. The answer to all these questions are in the hands of policy makers in the hands of developed countries of the world, like what has to be done by the united nations for the achievement of development in Somalia?Somalia is no longer included in the annual United Nations Development Program (UNDP) Human Development Report world ranking. If it were to be included, according to a special report on Somalia, it would sit firmly at the bottom in 175th position, below war-afflicted Sierra Leone: ·Ã‚        Peace and security, ·Ã‚        The stoppages of arm forces to take part in Somalia affairs, ·Ã‚        The capacity enhancement, ·Ã‚        Development of public sector, ·Ã‚        Need of foreign aid to develop Somalia training institutions, ·Ã‚        Food assistance and othe r aid programs from international community, ·Ã‚        The development of live stock sector, ·Ã‚        Illegal activities control.These were some of the main things, which need full concentration from the international world to look at. These issues required the attention of developed countries of the world in order to develop Somalia. for any country’s private sector development it is necessary to bring the public sector development for the advancement of economy if one or more then one sector is lacking in development the country’s economy remains at lower position and the country’s financial sector also not developed.Socio Economic Development of SomaliaUnited Nations development program to cover the economic policy to develop the economy in this context in the year 2002 World Bank and UNDPS combine’s efforts brings the socio economic survey which is taken from each house hold living in the country. T his data which is on the socio economic development of the country is based on the analysis of most of the economy gaps and the need of resources through of the country. The view of making such efforts were to brought forward the financial and investment institution for the socio economic development and the improvement of employment housing and demographic factors.It includes the things like the participation of women’s in the development of the economy and the role of institutions to increase the training and attraction of foreign investors towards this less developed economy. World Bank monitors whole of the function of collection of data regarding the economy of the country this report brings large number of those things, which are not to be brought up with the help of any other association.The Socio-Economic Survey 2002 is the first in a series of joint World Bank / UNDP statistical reports. The data collection and statistical capacity building will be further strengthen ed under the joint World Bank / UNDP re – engagement strategy for Somalia, with the collaboration of other development partners.These efforts put forward the efforts of women to the Somalia economy that is their participation in different public and private institutions like many women take part in police forces. The United Nations development program was based on the Somalia economy but also on the development of general public there and their participation in every financial and non-financial sector of the economy.Somali Financial Services AssociationThe Somali financial services association was formed in December 2003 in London. This conference was held for evaluating the problems regarding every sector of Somalia economy; the conference was attended by the developed countries leaders who then launched the Somalia financial association. The conference discussed the micro and macro faces of the economy. This association worked to support the industrial development in the ec onomy and the needs of setup anywhere in the economy and worked as a team in foreign countries to bring forward the industrialization and investment of the economy. This association also serves as the regulatory body in the absence of government in Somalia.Foreign Aid and SomaliaDue to the loss of large development programs in the past whose main reasons were the failure of development due to the internal fighting in the country that made Somalia the less developed country. In the day of 1970s to 1990s Somalia had passed up the years of hunger which was up to that extent that no body could think of living in Somalia the problem of hunger aroused in the economy.Due to internal crisis and these crises were spread up to that limit in which many children’s and women’s were killed due to the lack of food support, many disease broke up in the country aids HIV hyper Titus, the people were not had such programs then or the resources to protect themselves from these problems. A fter that worse condition out side world provides the financial assistance in the form of foreign aid to this country, this foreign aid was given by the developed countries of the world aim was to protect the life of people there.Large amount of foreign aid provided by the United Nations and the other developed economy, this foreign aid after the large efforts covered the food problem in Somalia but not that loss of lives and loss to the economy which occurred in those worse days. For this reason many foreign aid offices were established in African countries in Somalia Ethiopia and many other small countries the purpose of making such foreign aid offices were the provision of food and shelter for the people of Somalia.These are playing the role of emergency relief camps. in this role there are so many countries of the world who plays a very great role in the removal of hunger from Somalia these countries includes united kingdom united stats of America Pakistan Russia Germany and so many other countries of the world provided food and forces as the way of supply of food assistance. The German humanitarian agency called diakonie played an important role in the provision of aid to Somalia people they provided the aid of 100,000 Euro in order to get rid of food problem in Somalia. The United Nations refugee’s agency provided the 750,000 Euro to Somalia.Somalia Aid Coordination BodyIt is the Somalia aid coordination body that is formed by the United Nations agencies individuals who provided funds for the development and removal of hunger from Somalia and NGOs. In these donors the United Nations organization is one of the main donors of funds in order to get peace in Somalia. The funds were provided and still providing to Somalia for the rural development the development of country trade that is the country truly based on the live stocks and the agricultural products that’s why the United Nations efforts were comprises of the advancement of such program s through the supply of funds, which make the financial problem limited.After the several efforts made by different big countries of the world there were too much protection to the public was given and the problem of food was removed through the help of developed countries of the world. One of the major thing which is important for any country’s development is the investment so the united nations agencies work to provide the financial assistance in the form of increase in investment policies also. European Union played a very important role in making the financial position of Somalia and efforts to form the structure of the country like the other developing countries one the example of their effort is the city Berbera.In the year 2007 the European Union has given 4 million aids to Somalia for the removal of hunger and development programs. Also they have provided funds for the Ethiopia and Kenya, which are situated near the Somalia. Thus the aid was given to African countries by the European Union to improve their financial health.However as the financial growth of the country always gets better with the role of public in the country and the role of government Somalia was the country which didn’t had the proper governmental system in the past that’s why the country is still lacking in many things as the developed countries of the world there are no such developments in Somalia are made because of the lack of funds even if the European countries and other donor countries have provided a lot but the thing is country’s internal resource lacking which is due to the lack in industrialization and technology with these the training and education programs among public.Beside these foreign aid providence one more thing which was done by the anti parties in Somalia was the kidnapped of many soldiers from different countries of the world who were providing the assistance to public because of these problems many countries bring back their soldi ers from Somalia and their large number of soldiers were also found dead because of this behavior many countries aid stopped in Somalia however now the crisis have been controlled by the European agencies and the forces from other donor countries of the world.This is horrible news. We are so sad for the aid workers who are helping our people. We will do everything possible, even if it means using force, to release the hostages,†Punt land’s interior and security minister Mohamed Abdi told reporters.Concerns PolicyThe policy was made to resolve the issue of food and shelter among the public. this was the policy which made the emergency workings to get funds from the donor countries for the development programs which includes the provision of education health HIV and aids control livestock’s development food crisis in Nigeria dealing with the victims of south east Asia earth quakes tsunami this is the policy through which the evaluation and allocation of needs are located and the supply of assistance given to those sides in Africa.The policy explains the poverty effects on the economy and how it can be removed through making different development programs, which brings forward the financial development of the economy. The foreign aid to Somalia was provided from 1960s by the United Nations and still it is working. United Nations provided largest aid to Somalia but some of the Somalis think that the European Union countries have provided large number of aid to Ethiopia but not to Somalia.Aid Programs for SomalisThis aid program includes various policies and the formation of various agencies for the provision of food to Somalis the international agencies played great role in the provision of aid to Somalis. Somalia is the country which is without the government. The country has no central government system that’s why it is still in the position which it is in the past it is the country of crisis hunger diseases but why it is in this form ? Large countries of the world have made so many efforts to reduce the country’s conflicts but they are failed even the people don’t believe on one other the main reason is hunger they are facing lack of resources made them to fight for their survival.The government in Somalia after the formation was not so happy about the United Nations aid to Somalis. They think that they are not going to help Somalis and they are against Somalis. They want to indulge in the country’s affairs they think that large aids are given to the other countries and Somalia is still in the same condition as it is in the past.According to the view of Somalia prime minister he said that the United Nations and other European countries have lost their powers over Somalia during the last 15 years of its civil war. Most of the Somalis think that the governments of other countries are providing them the aid in their own interest they are interested in taking part in Somalia’s government and other affairs. Large number of aid controlled by the government agencies in Somalia and the us ambassador reported that the aid had been taken in to control by the government agencies and they wanted to stop the air ways through which the aid is supplied to the public.Financial Development and Foreign AidAfter so many crises there are some of the objectives which have been taken in to control by the European Union country’s regarding the Somalia development. However, the food crisis removal programs have taken many donations from the developed countries of the world that has broken the other financial development chain of the country. This breakage is due to their internal crisis, the changes in economy has been done but they are in very small amount as still the fight is not under control.The peoples are distributed among many parties and those parties are not in support of the other countries of Africa like Ethiopia Nigeria Kenya .the financial development program in So malia needs the assistance from the European union but due to their internal crisis now the European union countries are also not playing that role which they have played in the past, as the financial development needs the making of the financial institution and increase of investment opportunities but this is not possible with out the removal of internal crisis in the country because development always needs unity of ideas about growth of the economy.Problems Regarding Financial DevelopmentThe financial development in Somalia needs too many funds and donations from the outside countries. The developed countries of the world have made efforts to cover the problem but it still exists. Every country’s financial development needs some capital to grow up tin that less developed country like Somalia. There is the lack of industrialization and the new technology too so the development of any sector can easily take much of the time and donations to develop however there is lack of b asic needs too.These are those problems for which no one can go forward with out the solution of them. These problems are associated with the public and government institution the lack of necessities of life how can any country fulfill the need of the public there is only one thing possible the solution of the problem of public issues or the solution of the problem of government issues everything’s cannot be developed by any one at the same time because for any country the financial development needs.Peace and Prosperity, Security, Government StabilityThe country’s development must go forward with such things if these are not present in the economy. It means the development of the economy remains low and the economy remains in the same position as it was in the past development of countries should bring g by the people of country with the cooperation of government with the provision of ways to develop, but unfortunately the less developed countries specially in Africa are the poor countries there people are not in the position to fulfill the desires as they want they live from hand to mouth.Trade FacilitiesExport and import are the main part of every economy like the other developed countries of the world, which have much export and import in order to go forward. The countries are dependent on their own resources and the developed countries have made so many products from those resources. First thing is this like Somalia and many other poor countries they don’t have such facilities like the foreign investment in the country. The dependency on internal resources as the Somalia export dependent on their agricultural products but they are lacking the skilled force to compete the entire world education is one more problem which is the biggest hurdle in the way of development. To every country’s development knowledge and skills are necessary for development these skills are evaluated from the country’s people.Social Problems in So maliaSomalia is the country which has faced many problems in the past. They don’t have much capital to develop any sector of the economy they are lacking of work force skills and new technology why they don’t have such facilities? Answer is the lack of social security and social development country always develop through society development but these things are not present in the less developed countries the societies are not developed in that sense as the highly developed countries people are.The people of Somalia are as backward as compare to the developed countries of the world and they don’t have enough money to full fill their desires because for m ant y years they lived in hunger and fight they do not know to survive in the open world. They have such problems like health education and security for these reasons they have been suffered from the problems of diseases like HIV and Aids after that the European Union have provided them much donations to cut off these problems.Economic Growth of CountryThis is the essential part, which is placed after the development of society and the development of minds of the people increase in their skills knowledge about different subjects and devotion to work this development of the country needs the development of:Private sector, The banking sector development, Infrastructure of the country, Transport, Industries, Investment opportunities, Credit institutions, Law enforcement, Social programs, Job opportunities. Development Projects in SomaliaAfter the problems from many years now with the help of European countries Somalia is capable of making some projects and government is doing some efforts to fulfill these projects these includes:Development of FarmsFor this reason a project is made by the Somalia government with the help of foreign governments. The development of farming in the country as the whole export lies on the agricultural products of the country.Education ProjectFor improving the socia l health of the country’s people government is now making the project, which is based on the education of public this project t is suggested for Togdheer region of the country.Put Land ProjectBeside the problems of education health is also the other issue of Somalia people so the efforts have been done to remove such problem for this reason government has made the Put Land project which includes the development of infrastructure and the solution of health issues like the provision of clean water to the people and sanitary conditions to protect them from diseases.Business Sector DevelopmentIn the north west of Somalia a project has been made to fulfill the business sector demands like the development of small industry in the country and the development of banking sector too.Health ProjectsAs the Somalia people have been suffered from various diseases in the past, which were the killer disease so efforts have been made in order to solve the health solution of the public. This p roject is based on the development of health of peoples there a project has been launched for Togdheer and Awdal.Contribution OF W.H.OThe world health organization is making much effort to compete the health issues in the country. It includes the development of people by providing them the awareness about different diseases and their symptoms cure and other related issues. The European Union countries in the past years have made so many efforts in order to reduce the health problems from the country and they are successful to some extent. Now the programs have been introduced for the polio HIV and aids awareness among people.â€Å"Civil war, external intervention, clan conflict and poverty have combined to turn Somalia into a â€Å"failed state.†Somalia has no central government. Three principal factions (none of which is recognized by the United States as Somalia’s legitimate government) hold sway in separate parts of the country. In addition, numerous warlords cont inue to vie for dominance at the local level. Hundreds of thousands of Somalis live as refugees in neighboring countries, and many others are internally displaced. The economy is underdeveloped, with drought seriously affecting the country’s pastoral and agricultural base†. (Weak States and Terrorism in Africa: U.S. Policy Options in Somalia)United States Policy toward SomaliaThe United States have played a great role in the removal of many major problems from the Somalia country but still there are some major issues exist there. These made United States to set some priorities and goals to cover the major problems regarding financial development there. Now United Sates have made three goals to develop Somalia which are as under:Removal of Terrorism in SomaliaMain reason for the economic backwardness is the terrorism there for these reasons no foreign investments have been made there now the united states are making efforts through the help of forces of different develop countries to promote the development by removing the terrorism there by which the country’s private sector should be develop.Government StabilityThe formation of government is main thing for every country development as Somalia has been  faced the problem of no central government in the past now the United States and other European states are making the plan to fulfill the goal of government stability and peace in Somalia.Challenge to Face Internal CrisisThe United States plans include a major goal that is to face the internal fights and crisis of the country and develop the country from high sense to make control over and such internal crisis which are the hurdles in the way of economic development of the country.ConclusionThus from the past this is the country which have faced so many crisis and is still facing but these crisis put the Somalia talking in front of the developed countries of the world who have made a tremendous role for covering the problems there. Ho wever, still so many problems exist there but no one can make any thing better if the people living there are not be the support from the donor country. However the United Nations and other agencies from developed countries of the world have provided their forces and much foreign aid to develop the country.There are so many plans and projects made for the development but these all are under construction, not fill up. However it is to say that these plans will be fulfill too nearer in the future but the main problem which is present in the way of development is the misunderstandings among the general public government and the donor countries, for many years Somalia has faced too much problem of hunger so they are not in a position to develop their country with out developing them selves. Chairman Feingold who is the member of US peace committee said:â€Å"Somalia did not become a â€Å"failed state†in a day. Similarly, solving the governance problems that make Somalia an att ractive potential home for terrorists will not happen overnight. We have made a start. I am cautiously optimistic that the United States, Somalia’s neighbors and the international community can make a significant contribution to helping the Somali people regain functional government, and that the conditions that make Somalia attractive to terrorists can be overcome†. (Weak States and Terrorism in Africa: U.S. Policy Options in Somalia)Works CitedArabDataNet.com: Country Guide: Somalia: Snapshothttp://www.arabdatanet.com/country/profiles/profile.asp?CtryName=Somalia&CtryAbrv=so&NavTitle=Foreign%20Investment Accessed, May 12, 2007Financial Development in the Middle East and North Africahttp://www.imf.org/external/pubs/ft/med/2003/eng/creane/index.htm Accessed, May 12, 2007Poverty Reduction and Sustainable Livelihoods (PRSL)http://www.so.undp.org/page.asp?id=668 Accessed, May 12, 2007Somali Institutional Developmenthttp://www.so.undp.org/page.asp?id=662 Accessed, May 12, 2 007SSRN-Banking Development in Somalia by Arnaldo Maurihttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=958442 Accessed, May 12, 2007Situation Reports: Somalia, UNDP Somalia Quarterly Update – Apr 2004http://www.reliefweb.int/rw/rwb.nsf/AllDocsByUNID/a5444022715893a785256e7e006d3720 Accessed, May 12, 2007Weak States and Terrorism in Africa: U.S. Policy Options in Somaliahttp://www.state.gov/p/af/rls/rm/7872.htm Accessed, May 12, 2007World Hunger Notes–The Road to Hell: The Ravaging Effects of Foreign Aid International Charity by Michael Marenhttp://www.worldhunger.org/articles/books/maren.htm Accessed, May 12, 2007
Saturday, September 28, 2019
Classify the business according to its ownership †McDonalds Essay
The business I have decided to choose for this assignment is McDonald’s. McDonald’s ownership is a franchise. McDonald is a large business with more than 30,000 restaurants in over 100 countries, serving more than 38 million people each day. * Overseas comparisons indicate that franchising is the fastest growing form of retailing and McDonald has grown quickly by granting franchises. The term franchising has been used to describe many different forms of business relationships. This form of business ownership was first introduced in the U.K. It is a form of business organisation that is becoming increasingly popular in the United Kingdom. * A franchise is an agreement between two parties. An entrepreneur (franchisor) and franchisee. The franchise agreement grants to the franchisee the right and authorisation to operate a specific McDonald’s restaurant, at a single address. The franchise term is usually for a period of 20 years. These franchise rights include the use of McDonald’s trademarks, restaurant dà ¯Ã‚ ¿Ã‚ ½cor designs, signage and equipment layout, the formula and specifications for menu items, use of McDonald’s method of operation, inventory control, book-keeping, accounting and marketing. * A separate franchise lease covers the right to occupy the restaurant premises. In returns, the franchisee agrees to operate the business in accordance with McDonald’s standards of quality service, cleanliness food safety and restaurant safety. The franchisee is expected to take a ‘hands on’ role in operating the business, and to be involved in local civic and charitable activities. * Throughout the franchise term, the franchisee’s sole business interest should be McDonald’s. Franchising is really the ‘hiring out’ or licensing of the use of ‘good ideas’ to other companies. A franchise grants permission to sell a product and trade under a certain name in a particular area. For example if I have a good idea, I can sell you a licence to trade and carry out a business using my idea in your area. McDonald’s is a big example of brand franchising. McDonald’s has grown its business in the United Kingdom through franchising outlets. Explain the benefits and constraints of the type of ownership. In order to succeed it is necessary to consider the benefits and constraints involvement in franchise. There are clear benefits to this: * You don’t have to come up with a new idea. Someone else had it and tested too! * Large, well-established franchise operations will often have national advertising campaigns and a reputable, well established trading name. * Good franchisors (BFA) will offer comprehensive training programmes in sales and indeed all business skills. * Good franchisor can also help secure funding for your investment as well as e.g. discounted bulk-buy supplies for outlets when you are in operation. * If you are aware that you are running a franchise customers will also understand that you will be offering the possible value for money and service – although you run your ‘own show’ as a part of a much larger organisation. Benefits for franchisor: * Low capital expenditure  franchising is an excellent method of expanding your business with a limited amount of ready capital. Franchisor takes a share of profit without taking risk. Low risk route to expansion. * Personal commitment and motivation from franchisees is greater than from employees, the reason being that they have more accountability and responsibility than an ordinary employee. * Reduced daily involvement  it is a method of obtaining conscientious and dedicated personal who work hard to a safeguard their investment. Benefits for franchisee: Some of the advantages of franchising to the franchisee are that it gives them the opportunity of sharing some of the benefits of a large business such as: * An established reputation * A known brand name and image * Skilled management * Large scale advertising programmes which are usually paid for by an advertising levy * Economies of scale, producing on a large scale is termed economies of scale. McDonald’s does this by trying to keep low cost through economies of scale. They try to select suppliers, which will give the company value for money. * Franchising also offer much of the independence of a sole proprietor In this way a small business benefits from the economies of scale That comes from being part of a large company organisation. Constraints of franchising * Limits on product price – they can’t change their product price up to wherever they want. They have limits for price. * Limits on variety of product – they can’t have variety of products. Customers get confused if they’ll keep variety of product they have to keep certain products. * Limits on freedom- they can’t do whatever they want. They have to follow owner’s instructions to run their business. Franchisees have not much freedom. * Limits on the title of their business- they can’t even change the colour of their title. As you can see they have same colour and title style wherever their branches are. Task 2: A Clear description and explanation of the objectives of the business. The objectives of businesses can vary enormously. Companies may have a number of objectives. In general, the objectives pursued by a business tend to vary according to its size, ownership and legal structure. Small businesses are more likely to focus on survival as an objective as they tend to lack the financial resources to cope with adverse trading conditions. Larger businesses may aim to maximise profits. As being one of the larger businesses McDonald has the following objectives: * Profit maximisation * Survival * Market share * Growth * Providing exceptional customers care * Remaining an efficient and quality producer offering high value to customers (according to company’s policy) Profit maximisation: Profit maximisation is likely to be an important objective for most companies which shareholder including McDonald’s owns. Profit refers to the extent to which revenues exceed costs, so profit maximisation occurs when the difference between sales revenue and total costs is greatest. Companies such as McDonald’s seek to maximise profit to cover up their costs and to provide high returns for their shareholders. McDonald’s does this by trying to keep cost low through economies of scale. They try to select suppliers which will give the company value for money. In order to maximise sales they have various sales promotion throughout the year. The basis for their profit is low cost rather than high price. Survival: Survival is an important objective for many businesses. According to the business writer Peter Drucker: It is the first duty of a business to survive. The guiding principle of business economics, in the other words, is not the maximisation of profits; it is the avoidance of loss. Business enterprise must produce the premium to cover the risk inevitably involved in its operation. And there is only one source for this risk premium: profits. Most recently established businesses like McDonald’s have survival as objectives. This is because often they have intense competition in the market so they have to spend heavily on their advertising to attract customers. They have to ensure that they remain the Market leader in their industry. Growth: Growth occurs for the company when there is an ongoing increase in an economy’s production of goods and services. McDonald’s pursues growth through selling more franchises all over the world in order to have a presence in most countries in the world. They can achieve this by increasing the overall size of the business by merging or joining other firms of buying them out through a take-over. McDonald’s recently went into a joint venture with prà ¯Ã‚ ¿Ã‚ ½t a manager in order to enter another segment of the U.S market and gain a greater share of the market Increasing sale or market share: Growth occurs when there is an ongoing increase in an economy’s production of goods and services. Many businesses pursue growth strategies because their managers believe that this essential for survival. If the firm grows, it grows with more customers, earn higher profits and begin to establish itself in the market. Growth offers: * Increased returns for the owners of the business * Competitive salaries ( and more job security ) for employees of the business * A wider range of products for the business exists and potential customers it is increasingly common for mangers’ pay packages to successful managers can earn substantial incomes if that is reflected in the company’s share price. Increasing market share is an important objective for McDonald’s. It is likely to be a key objective any business operating in a market which is not growing. For example, the market for traditional beers in the U.K is not growing – indeed there are signs that it may be declining. As the market is not increasing the size, brewers of traditional ales can only increase sales by taking market share from competitors. Market share is also important for McDonald’s because that considerably from producing on a large scale. They use expensive equipment and the financial advantages of producing on a large scale are termed economies of scale. Where these economies exist, firm will attempt to take a greater share of the market. This allows them to sell their product at lower price, increasing their competitiveness. Task Three: Every organisation will need to acquire, use and change factors of production in order to produce goods and provide services. McDonald’s has several functional areas that exist in the business to help the business meet its objectives and to provide goods and services as well. And each of which is supported by a particular administrative office. The administration of each function is based on its offices. There are many administrative offices each with a specialist responsibility and function. The functional areas McDonald’s has are as follow: * Finance * Production * Human resources * Marketing * Research and development * 1) Finance Function: The finance director George Mackay is responsible for finance department. The main activities of finance function are: * To keep record of all business transactions, keeping of cost and revenues and setting target through budgeting. * To provide information about services. * To develop new product that satisfy customer’s expectations. * Quality assurance * Supply chain * Measure the financial performance of the business. * Increase market share so they can make profit and give money to their shareholders. * Control the finances and cash flow so the business stays solvent, i.e. does go bankrupt. * Take timely decisions by comparing the predicted performance with actual performance. This chart shows the structure of finance department. Finance Director Finance Information services New product development Quality assurance Supply chain According to McDonald’s finance director accurate financial information allows them to achieve their most important goals to increase profits by expanding, sustained growth and charitable objectives. McDonald’s not only invests much of its profit in extending its own business but also set aside millions of dollars each year to fund charitable activities. Not only this, McDonald’s also provides different type of support to other organisations and schools. * McDonald’s has invested considerable sums in restoring old buildings, often putting back architectural details that have been lost. * McDonald’s supports the Groundwork Trust, an environmental urban regeneration programme. * McDonald’s is a major sponsor of international football. * McDonald’s donates million of pounds towards community, educational and charity programme. * McDonald’s also provides salary and benefits to its employees and reviewed on regular basis. As for most of the time McDonald’s made consistently high profits around $3,633 million and have grown successfully by making good profit and still planning to grow more further (according to the McDonald’s book). 2) Production Function: The function of the production department is to change inputs into outputs, which means produce goods and services are to be brought by the customers. McDonald’s is committed to maintaining and developing the best food products in the quick service restaurant market. And this is what production department is responsible for. In order to deliver on this, the company has made commitments: to food safety, food quality and to nutrition. Company systems and procedures must be continuously updated to ensure the highest standards of hygiene and safety. All staff receives proper training in food safety. McDonald’s food is made from the basic commodities: red and white meat, fish, eggs, milk, grain and vegetables. All raw ingredients are produced to exacting specifications and the highest possible standards and quality and safety. McDonald’s highly trained workers work with suppliers to maintain and develop product quality. McDonald’s recognises the importance of a balanced diet, lifestyle and health therefore provides hot, less fat and fresh food to their customers. McDonald’s invest a lot of money in new technology. Thus, improving the quality food preparation and helps achieving company’s aim of growth in the fast food market. * Controlling production methods and planning the scale of production * Controlling costs and working efficiently * Meeting the specific needs of customers McDonald’s is working hard to develop their products and provide their customers a variety of differentiated products, which helps to meet another important objective satisfying customer needs because increasingly customers expect to buy the product that meet their exact needs. Developing efficient methods of production to reduce cost is helps to make profit and growth because a fall in the cost of production resulting form an increase in the size of a business, which is called economy of scale in the language of business. When outputs rises, the cost of production per item-the unit cost-falls, and the business can reduce the price of its goods. With the lower price, it will get more customers and so benefit from the even lower unit costs. This will make it more competitive and can easily increase market share. McDonald’s has raised standard through out the food processing industry. 3) Human resources: Human resources department deals with staff recruitment, training and development. Human resources is a very important function for the business because it selects the workforce (the right people for right job), provides training and development of staff, which improve their skills, performance and relates to the aim of McDonald’s, which is the best service for its customers. Efficiency helps a business run more smoothly, effectively and profitability. Efficiency begins with developing ways of working that are easy to understand and do not waste time or energy. Division of labour, in which each workers carries out a specific job, increase speed and the more people you serve each day the more profit you make so it helps to maximize profit as well as expand the business. McDonald’s have their employment policies. McDonald’s employs some of the best, most ambitious people on the job market. Whether they join as hourly paid staff or management trainees through gradua te or a high standard recruitment, they have the opportunity to develop a career, which can take them to the very top. Above all, McDonald’s values people with a positive attitude towards customers, themselves and other employees, and strive towards delivering the highest standards of quality, service and cleanliness. The ability to understand and adopt McDonald’s customer-led culture is as worth as the more usual career entry requirements of GCSE and university degree. The company is an equal opportunity employer and 1992 set up an equal opportunities group to help foster a diverse workplace and highlight equal opportunities as an important part of the company’ s ethos. McDonald’s commitment to equal opportunity extends beyond race, gender, ethnic origin, marital status, colour, nationality or disability, to compass people with very different backgrounds and experience. Whether university graduates and those without formal qualifications, first jobbers or those who have worked for decades, what binds employees is the knowledge that the opportunities are as great as an individual’s ambition and ability allow. And if employees are happy with the opportunities they are getting form the company they work hard for the company and try to provide best service in the world. It is important to retain talented staff and staff who have become skilled through training. By recruiting quality staff who are committed to the business, thus reducing recruitment costs by not having to recruit too often. McDonald’s also provide benefits with salary to its staff. Hourly paid staff benefits: * Free meal allowance * Paid holidays (4 weeks per annum) * Free life assurance (value dependent upon service) * Private health care (for employees aged 19+with 3 years service) * Sponsorship Programme * Stock purchase scheme * Employees discount card * Service awards (at 3, 5, 10, 15, 20 and 25 years service) * Stakeholder pension Apart from good rates of pay, McDonald’s try to provide good working conditions and incentives. This also helps McDonald’s to meets its objective of expanding and providing best service to the community. 4) Marketing: According to the research about McDonald’s marketing is the whole process by which goods get from producers to buyers. More people work in Marketing than in production. Marketing involves marketing research, distribution, pricing and promotion. As last week McDonald’s was offering 2 normal fries, hamburger, drink for only à ¯Ã‚ ¿Ã‚ ½2 and that offer was only for limited period. Marketing department deals with advertising, promotion and improving the image of the product and services to attract more customers. The fast food industry is in which many companies compete for customers. McDonald’s provide a better product, give better value for money, provide a superior service, better at distributing and selling its good and services and making them known through advertising and publicity. There is no doubt that McDonald’s do a lot of advertising and promotion activities. One of them is mentioned above. Recently McDonald’s announced that Kay Napier, Procter & Gamble marketing veteran, vice President/General manger, has been hired as a senior Vice President of marketing. McDonald’s marketing director said, â€Å"I am delighted to add this kind of marketing talent to our team at McDonald’s. This is another step in elevating one of the world’s great brands to an even higher level of marketing strength and value. This will also help them to achieve their objective, which is growth. Customer can be attracted through good eye-catching advertisement, advertisement has this tremendous ability to shift demand curve to the right. As customer increase income rises which helps achieving company’s aim of making profit so that they can cover their cost more easily. McDonald’s also meets its objective which is satisfying customer need by knowing what customer want and how much they are willing to spend on their food. To achieve this objective marketing department employees special research team for the test products do surveys with customers to taste new product and answer questionnaire about them. According to McDonald’s policy McDonald’s will not work with any supplier who does not adhere to the standards required by UK and EU legislation regarding animal welfare, transportation, husbandry, inspection, and quality & hygiene. This policy helps McDonald’s to meet its o bjective of Providing best food, beat competition and improve the company’ image. 5) Research and development: The purpose of R & D is to enable business to compete successfully and achieve permanently sustainable competition over its competitors by becoming more efficient and/or profitable and giving customers’ added value. To achieve this McDonald’s always and will continue to develop new products that satisfy customer’s expectations for great taste and great value. The company’s new product and development team works with suppliers to expand the menu with new core and promotional food items. The team helps to ensure that all new food items meet McDonald’s high quality and safety standards. As with the existing product range, McDonald’s solicits and carefully listens to customers’ view on any new or promotional products. * McDonald’s offer more and more choices for breakfast by developing new products as more and more customers eat breakfast out rather than at home. * Changing existing products McDonald’s uses conventional food chemicals or additives that add flavour and colour that helps to maintain freshness and make changing in existing products by listening to customers’ views. * Collecting data from worldwide research McDonald’s has special research team to find out what customers want and how much they can spend. McDonald’s also has restaurant development policy: When McDonald’s has local knowledge which is a key to choosing new locations, McDonald’s on discussion with local managers who are closely involved at roots level with their local communities. By keeping customers convenience McDonald’s develop new restaurants. Company is committed to responsible and works closely with local planning and community groups when developing new restaurants. Every bullet point and information is written there helps McDonald’s to achieve its objective of providing good service to the community by attracting more customers and making profit. There are advantages and disadvantages with every functional areas but each functional area helps McDonald’s in one way or another to meet its objectives. Task Four: There are three types of management style and they are: * Democratic * Autocratic * Consultative Management style will describe the different ways that the managers treat their employees and also the way the in charge of the employees. Democratic management style: This type of style involves empowerment. Individuals and team are given responsibility to make decisions, usually with a given frame. The team is then responsible for the decisions that it makes. A manager with this style will feel comfortable allowing others t make decisions. Autocratic management style: This style is where manager gives out instructions, telling people what to do rather than asking employees. The manager is the only person who contributes to decision making. Consultative management style: Consultative mangers are ones who seek to consult other to implement decisions. This type of style wants to draw on more sources of opinion than just her or himself. The purpose of management style is to remember where we started. Business exists to satisfy demand for particular goods and services and in order to do this they need resources; the factor of production. Being the fast food company McDonald’s exists to provide catering service to the community. Management is concerned with planning, controlling and co-ordinating the acquisition and use of these resources. In large concerns like McDonald’s, managers run the business by using people and information. The term ‘managing’ comes from the Latin word for hand, as does the word ‘manual’. It originally meant ‘handling’ things’ but did not originally apply to people. McDonald’s Management is responsible for the preparation, integrity and fair presentation of the consolidated financial statements and financial comments. The financial statement has been audited by independent auditors, Ernst & Young LLP, who was given unrestricted access to all financial records and related data. The audit report of Ernst & Young LLP is presented herein. The Board of Directors, operating through its Audit Committee composed entirely of independent Directors, provides oversight to the financial reporting process. Ernst & Young LLP has unrestricted access to the Audit Committee and regularly meets with the Committee to discuss accounting, auditing and financial reporting matters. McDonald’s has an autocratic management style. A manger takes entire responsibility for decisions and, having set objectives and allocated tasks to employees, expect them to be carried out exactly as specified. Employees are told exactly what, how and when work must be started and finished. It is the kind of management style associated with a corporate culture centred almost exclusively on production. Power is focused at the top, and the centralised decision making is geared to getting the goods out of the company and to customers. The culture of a business can be widely affected by its attitudes, values and beliefs. There are different types of culture McDonald’s is very close to customer driven culture by keeping this culture in its mind McDonald’s works and as it is described before that McDonald’s first priority is its customers. Attention is focused on improving all aspects of the production process down to the minutes detail for the customers’ benefits. Technological culture is focused as well. To improve its technology and develop new products they listen to its customers as well as to their staff. An autocratic style does have some advantages and advantages for McDonald’s. Disadvantages are: * Workers may want some flexibility, freedom, little contact workers therefore little teamwork, can be demotivating. * Disadvantage of having a hierarchical structure is that messages can get distorted or lost from one manager to the next. * There is also poor communication between the different functions. Advantages are: * Need quick decisions, health and safety, clear and consistent approach helps employees * Advantages of the hierarchical structure are that every one knows whom they are responsible to and whom they are responsible for. * This can also shows where specialists are needed in their divisional groups The organisation structure McDonald’s has is hierarchical structure, which you can see on next page. The benefits McDonald’s gets are clear management structure, clear lines of responsibility and control and functions are clear and distinct. Of course where there are advantages there are disadvantages as well. The disadvantages McDonald’s has are many layers of communication and many layers of authority and decision-making. The relationship between structure, management style and culture Structure Management style Culture Hierarchical, many levels Autocratic Based on routine procedures of management, e.g. in and job roles, decisions are large business like McDonald’s centralised. Being a huge company McDonald’s has an Operations Director (Peter Sullivan), Development Director (Peter Richards), Finance Director (George Director), Marketing Director (Matthew Howe), HR & Training Director (Carmel Flatley) and chairman and chief executive (Andrew Taylor) are the most important people in the company. Together with the other directors, they oversee the work of the company’s five vast departments: Operational, technical, real estate, financial and marketing. There are also regional manager senior supervisor and superior supervisor, restaurant manager and assistant manager. The board of directors have senior jobs in the company, overseeing different divisions. These are the executive directors. The board also includes non executive directors, who do not work for the company. They help the board make decisions and look after the interests of the shareholders. McDonald’s also have training and careers or its employers. McDonald’s employs local people in their own community. It is an equal opportunity employer, and women and people from ethnic minorities are represented at all levels. Young people accepted for a position on McDonald’s career programme can quickly climb the promotional ladder. Trainee managers go through a series of training courses at centres set up in their own community. They receive even more important on-the-job training at a McDonald’s restaurant. McDonald’s has an open door policy, which allows staff access to managers from the chairman down. Everyone is welcome to make suggestions or complaints. McDonald’s also holds a frequent meetings called rap sessions where staff can voice their complaints to someone from headquarters or air grievances to a member of management from another restaurant. McDonald’s now has a bureaucracy; senior staff is not even treated with the awe they command in some companies. Even the chairman is approachable. The staff and the public have open access to him through the company’s open door policy. There is a McDonald’s management structure on next page. Task 5: A description of the use of ICT for internal and external communications of the business. Businesses need to communicate with a range of individuals and other organisations including their customers, their suppliers, as well as their own employees. Every organisation will need to be able to communicate effectively with staff at all levels for it to function smoothly and efficiently. These are the reason why communication is important for a business or an organisation whether it is internal or external. The business I have chosen for this assignment is McDonald’s. McDonald’s also has internal and external communication to run its business effectively. McDonald’s has an IT strategy. Information technology is important where it enables a business to achieve its goals. However cost is always important and evidence seems to show that IT is more expensive than firms realise. According to Management Consultants, support cost can be five times the amount estimated. This includes help from other staff and time spent on security and back-up procedures. Other costs can include: * Staff training * Introducing health and safety measures * The need to maintain efficient security Two recent trends in keeping down IT costs are: Downsizing: when we look at human resources management then downsizing means is lying off employees. However in IT it simply means using smaller systems, such as a mini-computer instead of a mainframe, or a PC instead of a mini. This is possible because hardware is becoming more powerful. The other recent trend is outsourcing. Outsourcing: This again is a term used in human resources management Internal and external communications: Internal communication: Internal communication is communication that takes place within the organisation. The three main ways of communicating information inside McDonald’s are intranet, McNews and MDUK and High levels. Methods of keeping In touch with staff: * Intranet Launched in the year 2000, McDonald’s UK intranet provides a fast and up-to-the-minute source of information for McDonald’s restaurant management and office staff. It is a single point of reference administrative requirements, news and marketing materials. * McNEWS AND MDUK McNews was the award-winning magazine published bi-monthly for all restaurant staff. In 2002, McNews was re-launched as MDUK – a lively people-focused magazine, it covers news, activities and events from restaurants around the country. * High levels Published bi-monthly for all management and office staff it is a showcase for best practice, recognising individual’s outstanding practices and achievements, as well as highlighting internal and external awards. * An email system operates in all offices and company-owned restaurants. * Regular staff communication sessions are held in the offices. * Employee satisfaction surveys for both office and restaurant staff are held annually. This is how McDonald’s communicate with its staff. The purpose of internal communication is to communicate with its internal customers, which are employees to run business effectively and smoothly. Provide them information they need time to time. External communication: External communication takes place between the organisation and the outside world. McDonald’s needs to communicate with a range of stakeholders including shareholders, customers, government, suppliers and the community. Communicating with suppliers and customers: * Telephone: The most frequently used form of external verbal communication is telephone. McDonald’s uses this form of external communication to contact with their suppliers. Apart from this McDonald’s has answering machines to keep in touch with customers. Phone answering machines tape callers’ messages, which can be played back from a distance by calling the number and typing in a code. * Business letter: McDonald’s has its address available on it’s every website for their customers and also to obtain your copy of the pack you can contact them by sending a letter. * Website: Most companies have an internet website including McDonald’s. McDonald’s uses this for all external communications purposes and for public relations activities. I also used McDonald’s website to do research for my assignment. * Fax: Fax is a form of external communication. Fax machine is used to transmit and receive suppliers to communicate. The purpose of external communication is to communicate with its customers, suppliers and community. Provide them information about the business they want. Benefits: The benefits of using internal communication are: * The benefit of using intranet to business is that it provides a fast and up-to-minute source of information for McDonald’s restaurant management and staff. * McNews magazine covers news, activities and events from restaurant around the country. * E-mail system is faster and efficient. Information and reports are confidential. The same message can be sent immediately to many people. * Employee surveys helps to get employee views. The benefits of using external communication are: * Telephone is fast and its great benefit is that it allows people who would find it difficult to meet to converse. And a person who can’t read or write can talk over the phone to get information. * The use of business letter saves time for the person whom you are writing to and you can explain in detail. Not everyone has access to internet so if somebody who needs information about the organisation can write a letter to them. * Fax does the same thing its transmitting speed is fast and saves time. Again if somebody need information about the organisation can contact them through fax if has no access to internet. * Website provides a lot of information about the organisation and in detail with pictures and graphs make easier for you to understand. It saves time of both who wants information and the one who is giving. For example if you asking the manager of McDonald about the company but he hasn’t got enough time to give you information in detail so when you have time you can go on to McDonald’s website and look for the information you need in detail. In order to achieve business objectives McDonald’s has created communication channels which all allows the company to communicate effectively both internally and externally. Due to successful communication when looking at the McDonald’s UK financial profile form 1998 to 2001. One can clearly see a substation increase in profit during this period. By using effective communication McDonald’s meets a range of organisational objectives which are crucial for the business such ads being a market leader, no 1 fast food retailer in the world which is due to the excellent reputation built throughout the year by maintain strong relationships with customers, adapting to new environment investing in new technologies and continuously up-grading systems and improving staff training. All this reflected in McDonald’s ability to maximise sales profit and revenues. ICT has an enormous impact on McDonald’s business internally and externally. E-mails replaced the old fashioned methods of communication such as letters and phone calls. The company has a very sophisticated network database which replaced the traditional systems of filing, storing information. Computers are used every where in the business to replace a range of standard operations such as maintaining stock levels, organising deliveries, preparing invoices and recording payments etc. The use of the internet website enables McDonald’s to reach any place in the world and is a very latest link with the global market for example every body can obtain the information from the website in a matter of minutes. The global net exchange enables McDonald’s through electronic data interchange (EDI) system to arrange financials transfer dramatically reducing time, paper work and costs. Poor communication results in mistakes, anxiety, low morale, inadequate control and aggression. Not surprisingly there is concern to improve the quality of communications. First this means improving the communication skills of people within the organisation. Second, it means developing systems of communication. We can identify the skills required by individuals as: o Patience o Discretion o Understanding o Assertiveness â€â€Ã¢â‚¬â€ where necessary. A clear explanation of how the production process and quality assurance / control system employed by the business help it to add value to its product or service. McDonald’s production is a very important process in McDonald’s business activities and it involves: o Processing o Manufacturing o Assembly o Craft-based production Processing: Most of the McDonald’s products are created by processing which includes food and drinks. Processing involves treatment such as washing, cutting, salting, weighting, heating, grilling and frying etc. The raw materials such as meat, chicken, fish and vegetables etc are passed through a series of processes until the desire form product is produced for example chicken fillet is processed into chicken burgers, grilled and then assorted with salad cream. Manufacturing: Manufacturing involves making boxes, cups, sticks and different children’s toys which McDonald’s has special facility to produce techniques include for example producing plastic toys from plastic granules called â€Å"Polietilen†which is put into a machine which is heated and under pressure different shapes are made for toys. The same thing applies for the plastic cups for hot and soft drinks. Assembly: A typical assembly operation for example putting together big Mac and French fries with a cup of soft drink in a paper bag to serve the so-called big meal for à ¯Ã‚ ¿Ã‚ ½4.99. Another example for an assembly is when staff is in the workshop assemble kid’s toys, which go together with the kid’s happy meal. Craft-based production: Craft based production involves making individual products by hand for example a birthday cake for McDonald’s birthday parties where the parent can request a special shape and decoration for the child’s birthday cake. So McDonald’s takes individual offers for special cakes. Especially trained staff has the ability and skill to create imaginative and attractive design that suits the individual needs of customers. Craft production in McDonald’s for example involves working with material such as icing, chocolate, cream, coco powder and baking powder. Quality assurance: McDonald’s is committed to maintaining and developing the best food products in the quick service restaurant market. In order to deliver on this, the company has made a number of other commitments: to food safety, food quality and nutrition. McDonald’s first is always the health and safety of customers. The company believes that the food safety standards required by law are only a minimum and the company continually seeks to go beyond this. Because of this belief, McDonald’s has developed a food safety policy to help keep the focus of the company’s absolute commitment to food safety and quality. – All raw materials delivered to McDonald’s restaurant must be consistently produced to the highest standards of hygiene and safety. – Company systems and procedures must be continuously updated to ensure the highest standards of food hygiene for all customers at all time. – All staff receives proper supervision and training in food and safety. – The equipment used must be the appropriate for the needs of each restaurant, and must be carefully maintained and carefully calibrated. Following its launch in early 1998, McDonald’s continues its programme of sponsoring research grants in food safety. The grants are particularly aimed at supporting the work of researchers in the early stage of their independent research careers, who are working in established UK-based departments and institutions. McDonald’s is committed to serving hot, fresh, great tasting, great value food to all customers, every time that they visit a restaurant. McDonald’s food has made from the basic commodities: red and white meat, fish, eggs, milk, grain and vegetables. All raw materials are produce to exacting specifications and the highest possible standards of quality and safety, The Company will not use any ingredients unless it is clear exactly where it has come from and that it compiles with all relevant regulations and McDonald’s own high standards. Additives are only used to ensure that high quality standards are maintained. Additives are removed or replaced wherever possible, as long as this does not compromise food safety or quality. McDonald’s has a highly trained team of quality assurance whose job includes verifying the company’s supply chain through audits and site visit. These employees also work with suppliers to maintain and develop product quality and to ensure that restaurants consistently serve hot, fresh food. Independent food safety auditors re also used to assess their key suppliers partners. In 1984 McDonald’s became the first UK restaurant company to publish detailed nutritional information on all core menu items. McDonald’s highest priority is for the safety of its customers. The company will not any product or ingredient that does not meet their high standards of quality and safety, or has not received the necessary approval by the relevant UK authorities. McDonald’s will not work with any supplier who does not adhere to the standard required by UK and EU legislation regarding animal welfare, transportation, husbandry, inspection, and quality & hygiene. McDonald’s always and will continue to develop new products that satisfy customers’ expectations for great taste and great value. Around the country, thousands of people form a network of dedicated suppliers involved in the day-to-day operation of McDonald’s business. The responsibility of serving more than 2.5 million customers each day makes quality a consistent goal. McDonald’s work with leading suppliers across the UK – from potato farmers in Lincolnshire and Norfolk to dairies in the south and midlands-to bring the customers the tasty products they expect from McDonald’s. It is McDonald’s policy worldwide to purchase supplies from local producers wherever possible, providing that they can meet exacting product and hygiene regulations, operate responsibly and humanely and are competitive. McDonald’s strives to ensure quality from crop to counter. To that end, McDonald’s requires the highest standards and specifications, not just product ingredients every detail of production, transport, delivery, preparation and service is also exhaustively monitored. McDonald’s also recognises the importance of a balanced diet and lifestyle and continues quality new products, which satisfy customers’ expectations for taste and value. A focus on quality permeates every aspect of the business. McDonald’s standards lead the industry, and will continue to work with government and health officials to investigate improvements. Quality control: Quality control in McDonald’s involves all kinds of inspection system for checking the raw materials, the food processing, customer service and management. The company carries out different types of testing the raw materials as well as the ready made meal and drinks for example the cooking oil in which the French fries are cooked is changed twice a day. Each restaurant manger and supervisor inspects daily the premises, the safety of the equipment and the expiry date on stored product such as milk, cream etc and general hygiene on the premises including McDonald’s car park and the neighbouring areas. In the company mission statement different policies are allocated such as health and safety, food hygiene, manual handling, customer service, litter control, recycling and environmental policy for example McDonald’s is a member of the environment council, the corporate responsibility group of Earth watch Europe, the industry council for packaging and the environment (INCPEN), and greeting the high street, a group of retailers who have come together to develop recycling in the high street. Another example is that McDonald’s takes a sensitive approach to its built environment, working closely with planning and conservation officers to preserve buildings of architectural merit and to improve the townscape. In many towns, McDonald’s has invested considerable sums in restoring old buildings, often putting back architectural details that have been lost. York, Chester and Stratford-upon-Avon are prime examples. McDonald’s has supported the tidy Britain Group’s annual ‘National clean’ activities. Since 1988 and support its campaign ‘just Bin it’. In addition to corporate funding, restaurant throughout the UK organise and support activities to clean up their local environment in conjunction with local youth groups. o McDonald’s is one of the country’s leading sponsors of council litterbins. o All packaging carries the Tidy Britain Group’s ‘Tidy Man’ symbol. o Many McDonald’s restaurant organise litter-related competitions with local schools and youth groups. o McDonald’s was a founding sponsor of ‘Going of Green’, a nationwide awareness campaign for sustainable growth. In 1997 at the TIDY Britain Group’s Queen Mother’s birthday Awards for environmental improvement, McDonald’s received the top award, the Queen Mother’s Birthday Trophy. o 100% recycled used for happy meal boxes, take away bags, take away trays, napkins, kitchen rolls and toilets. o All McDonald’s tray liners are made from 100% fully recyclable and biodegradable materials. o All McDonald’s suppliers have to use minimum recycled content of 50% in their corrugated containers. o All McDonald’s offices recycle waste paper and also use recycled paper. o The majority of McDonald’s restaurants recycle their cardboard and used cooking oil.
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