Effectiveness of Software Quality Assurance in Offshore Development Enterprises in Sri Lanka

EFFECTIVENESS OF SOFTWARE QUALITY ASSURANCE IN OFFSHORE DEVELOPMENT ENTERPRISES IN SRI LANKA Malinda Sirisena, Department of Computer Science & Engineering, University of Moratuwa. ABSTRACT The aim of the research described in this thesis is to evaluate the effectiveness of software quality assurance approaches of Sri Lankan offshore software development organizations, and to propose a framework which could be used across all offshore software development organizations. An empirical study was conducted using derived framework from popular software quality evaluation models.The research instrument employed was a questionnaire survey among thirty seven Sri Lankan registered offshore software development organizations. The findings demonstrate a positive view of Effectiveness of Software Quality Assurance – the stronger predictors of Stability, Installability, Correctness, Testability and Changeability. The present study’s recommendations indicate a need for much emphasis on software quality assurance for the Sri Lankan offshore software development organizations. Keywords: Software Quality Assurance (SQA), Offshore Software Development, Quality Assurance Evaluation Models, Effectiveness of Quality Assurance. BACKGROUND INFORMATION Software Quality Assurance (QA) plays a major role in successful implementation and maintenance of a software project. In many organizations, QA has been simply traded-off to project cost [1]. The motivation of this research is to highlight the value of Software Quality Assurance against the economic cost. The IEEE standard ANSI/IEEE 730-2002 defines software quality assurance as â€Å"a planned and systematic pattern of all actions necessary to provide adequate confidence that the software conforms to established technical requirements†[2].QA is not only holding a direct relationship of meeting customer satisfaction, but it has a very high impact on project schedules and cost. Failing to pay attention is often resu lted in budget overruns and schedule delays [3]. Software Quality Assurance has paid back in many industries such as telecommunication, health, travel, law, hospital, government and schools in many American organizations. †¢ A system of teaching hospitals conservatively estimates $17. 8 million saved on an investment of $2. 5 million in quality management over a five-year time period. The University of Pennsylvania saved more than $60,000 a year from one project focused on reducing mailing cost. †¢ The U. S. Bureau of Labor Statistics reduced the time needed to produce the monthly Consumer Price Index (CPI), compiled by 650 people in five departments, by 33 percent with no loss in accuracy. [4] Even in Sri Lankan software engineering companies, have been recognized QA as an important element. In 2005, Affno (www. affno. lk) has won the National Best Quality Software Gold Award for their product – eTender, which developed for Sri Lanka Telecom to automate their tende ring process [5]. 2 THEORETICAL BASE OF THE STUDY 2. WHAT IS SOFTWARE QUALITY The IEEE standard ANSI/IEEE 730-2002 defines software quality assurance as â€Å"a planned and systematic pattern of all actions necessary to provide adequate confidence that the software conforms to established technical requirements†[2]. By going down the path of IEEE definition, there are two major camps when defining software quality[6]: 1. Conformance to specification: quality defines in terms of the level which the product or service meets its’ written specifications. 2. Meeting customer needs: meeting customer’s explicit or implicit needs, irrespective of any measurable product or service characteristics.Currently software quality assurance is measured in two ways: from technical perspective and from user perspective[7]. In the technical perspective of measuring software quality is based on specifications. Developers measure quality and ensure specifications in terms of errors i n code through testing process and through other mechanisms such as formal specifications, structured programming[8]. End-user perspective of software quality is measured through user experience to denote how well software meets user expectations. User dissatisfactions do not necessarily be resulting from failure to meet specifications or coding errors. . 2 SOFTWARE QUALITY MANAGEMENT PHILOSOPHIES This section of the literature presents different philosophies of quality from view points of quality management gurus. These quality management philosophies could be a good alternative to formalized quality models which the research is going to based on. Quality management requires customer satisfaction, prefers prevention to inspection, and recognizes management responsibility for quality[9]. 2. 2. 1 DEMING AND FOURTEEN POINTS FOR MANAGEMENT Walter Edward Deming defines quality in terms of customer satisfaction[10].Customer satisfaction is beyond conformance to specifications. According to Deming, the judge of quality should be the end user or the customer. Deming argues that management system should implement in a way that everyone in the organization to be responsible for quality of their output to the internal stakeholders. He introduced fourteen points for management for people to understand and implement necessary quality transformation[10]: 1. Create constancy of purpose for improvement of product and service: Stay in business and provide jobs through innovation, research, constant improvement and maintenance. 2.Adopt the new philosophy: For the new economic age, management needs to take leadership for change into a learning organization. 3. Cease dependence on mass inspection: Eliminate the need for mass inspection by building quality into the product. 4. End awarding business on price: Aim at minimum total cost and move towards single suppliers. 5. Improve constantly and forever the system of production and service: Improvement is not a one-time effort. Man agement is obligated to continually look for ways to reduce waste and improve quality. 6. Institute training: Workers should be trained properly on their jobs. . Institute leadership: Leading shall consist of helping people to do a better job and to learn by objective methods. 8. Drive out fear: To assure better quality and productivity, people feel secure. 9. Break down barriers between departments: Team work culture across departments. 10. Eliminate slogans, exhortations and numerical targets: Let workers formulate their own slogans. Then they will be committed to the contents. 11. Eliminate numerical quotas or work standards: Quotas take into account only numbers, not quality or methods. They are usually a guarantee of inefficiency and high cost.A person, in order to hold a job, will try to meet a quota at any cost, including doing damage to the company. 12. Remove barriers to taking pride in workmanship: People are eager to do a good job and distressed when they cannot. 13. Inst itute a vigorous programme of education: Both management and the work force will have to be educated in the new knowledge and understanding, including teamwork and statistical techniques. 14. Take action to accomplish the transformation: It will require a special top management team with a plan of action to carry out the quality mission.A critical mass of people in the company must understand the 14 points. 2. 2. 2 JURAN AND THE IMPORTANCE OF TOP MANAGEMENT COMMITMENT TO QUALITY Joseph M Juran proposes two meanings to quality[11]: 1. Quality consists of those product features which meet the need of customers and thereby provide product satisfaction. 2. Quality consists of freedom from deficiencies. In the handbook Juran propose quality as â€Å"fitness for use† rather than â€Å"meeting customer needs† he argues that it is not a feasible task to meet customer need. His view is much closer to the thought – â€Å"conformance to specifications†.Juran propose s three fundamental managerial processes for the task of managing quality. The three elements of the Juran Trilogy are[11]: 1. Quality planning: A process that identifies the customers, their requirements, the product and service features that customers expect, and the processes that will deliver those products and services with the correct attributes and then facilitates the transfer of this knowledge to the producing arm of the organization. 2. Quality control: A process in which the product is examined and evaluated against the original requirements expressed by the customer. Problems detected are then corrected. . Quality improvement: A process in which the sustaining mechanisms are put in place so that quality can be achieved on a continuous basis. This includes allocating resources, assigning people to pursue quality projects, training those involved in pursuing projects, and in general establishing a permanent structure to pursue quality and maintain the gains secured. 2. 2. 3 CROSBY AND STRIVING FOR ZERO DEFECTS Philip B Crosby is a â€Å"conformance to specification† adherer. Crosby summarizes his perspective on quality in fourteen steps that is built around four fundamental â€Å"absolutes† of quality management[12]: 1.Quality is defined as conformance to requirements, not as â€Å"goodness† or â€Å"elegance† 2. The system for causing quality is prevention, not appraisal. That is, the quality system for suppliers attempting to meet customers' requirements is to do it right the first time. Crosby is a strong advocate of prevention, not inspection. In a Crosby oriented quality organization everyone has the responsibility for his or her own work. There is no one else to catch errors. 3. The performance standard must be Zero Defects, not â€Å"that's close enough†. Crosby has advocated the notion that zero errors can and should be a target. . The measurement of quality is the cost of quality. Costs of imperfection, if corrected, have an immediate beneficial effect on bottom-line performance as well as on customer relations. 2. 2. 4 ISHIKAWA AND FISHBONE DIAGRAM Kaoru Ishikawa defines quality as â€Å"meeting customer needs†[13]. He further argues that no specific quality standard could ever define and following them does not meet the expected quality levels. According to Ishikawa, quality is a very broad concept which goes beyond product, service, process, information quality, etc.He introduced quality circles through Fishbone diagrams. 2. 2. 5 FEIGENBAUM AND TOTAL QUALITY CONTROL Armand Vallin Feigenbaum built his thought around â€Å"total quality control†[14]. Feigenbaum states that quality is a dynamic factor which must be defined in terms of customer experiences. He further states that quality should satisfy customers’ explicit and implicit needs[14]. 2. 3 SOFTWARE QUALITY MODELS Previous section focus on different view points of quality management gurus. These points wi ll be helpful in solving common quality management problems in Sri Lankan, offshore enterprises.Quality management philosophies presented in the previous section represent flexible and qualitative view of quality; this section will present a rigid and quantitative[15] quality structure, which will be a roadmap of identifying independent variables for current study. 2. 3. 1 MCCALL’S QUALITY MODEL Jim McCall’s quality model is primarily aimed towards the system developers and development process, however he has tried to bridge the gap between users and developers by focusing on number of quality factors, considering both user’s and developer’s priorities[16, 17].The quality model is organized around three quality characteristics[16]: Figure 1: McCall’s quality model organized around three types of quality characteristics McCall’s model furthermore elaborated with a hierarchy of factors, criteria and metrics around the three types of major pers pectives. Figure 2: McCall’s quality model Eleven factors on the left-hand side of the model represent the external view of quality as viewed by end users. These eleven factors attribute to twenty three quality criteria, which describe the internal view of software. The evaluation is done by answering each quality criteria with â€Å"yes† and â€Å"no†.Finally the quality level is derived as a percentage based on the responses received as â€Å"yes†. 2. 3. 2 BOEHM’S QUALITY MODEL Barry W Boehm’s model has similarities to McCall’s model. His qualitative approach of defining quality stems from three levels in the hierarchy, which ends with primitive characteristics[18]. These primitive characteristics individually contribute to the overall quality level. Figure 3: Boehm's software quality characteristics tree[19]. Quality measurement is carried out through extent or degree to which the product or service achieves each characteristic[19] . 2. 3. 3 ISO 9126Among the ISO 9000 series of quality standards, ISO has released the ISO 9126: Software Product Evaluation[20]. Figure 4: The ISO 9126 quality model [20]. ISO further proposes quality characteristics/guidelines to evaluate the above six areas of importance. Figure 5: ISO 9126 quality attributes Each quality factor/ six areas of importance is represented by sub-factors as depicted in the above diagram. Details of each selected attribute will be discussed in the next chapter. 3 CONCEPTUAL FRAMEWORK This chapter elaborates how the conceptual framework for the study has been derived through the existing work identified in the literature review. . 1 EXISTING WORK Since the study is on evaluating software quality from software developing organization’s view, it is necessary to filter down the quality attributes discovered in the literature, only to represent developer view of software quality. Therefore it has been decided to take the union of developer related qu ality attributes from all three popular models referred in the previous chapter. It is not an easy task to differentiate developer oriented quality attributes from user oriented attributes as quality classifications are different from each model and some attributes are subjective to their multiple definitions.For a consistent interpretation of the quality attributes, the definitions of attributes have been used according to Software Engineering Institute’s (SEI) Software Technology Roadmap glossary[23] and ISO 9126[24] definitions. 3. 1. 1 DEVELOPER ORIENTED ATTRIBUTES FROM MCCALL’S MODEL McCall’s model mainly goes hand in hand with external quality factors. Following are the quality attributes extracted from McCall model, which are related to developer related quality based on SEI definitions. Selected Attribute Maintainability SEI Definition[23] â€Å"The ease with which a software system or component can be odified to correct faults, improve performance, or other attributes, or adapt to a changed environment. † â€Å"The degree to which a system or component facilitates the establishment of test criteria and the performance of tests to determine whether those criteria have been met. † â€Å"The ease with which a system or component can be modified for use in applications or environments other than those for which it was specifically designed. † â€Å"The ease with which a system or component can be transferred from one hardware or software environment to another. â€Å"The degree to which a software module or other work product can be used in more than one computing program or software system. † â€Å"The ability of two or more systems or components to exchange information and to use the information that has been exchanged. † Testability Flexibility Portability Reusability Interoperability Table 1: Developer related quality attributes from McCall’s model 3. 1. 2 ADDITIONAL ATTRIBUTES FROM BOEHM ’S MODEL Boehm’s model, which has put the utility perspective in terms of quality, is much similar to McCall’s model.After evaluating definitions, following two attributes were added to the list. Selected Attribute Understandability Modifiability SEI Definition[23] â€Å"The degree to which the purpose of the system or component is clear to the evaluator. † â€Å"The degree to which a system or component facilitates the incorporation of changes, once the nature of the desired change has been determined. † Table 2: Additional developer related quality attributes from Boehm’s model 3. 1. 3 ADDITIONAL ATTRIBUTES FROM ISO 9126 Following are sub-attributes taken from the ISO 9126 definitions.Selected Attribute Analyzability ISO Definition[24] â€Å"The capability of the software product to be diagnosed for deficiencies or causes of failures in the software, or for the parts to be modified to be identified. † â€Å"The capability of the so ftware product to enable a specified modification to be implemented. † â€Å"The capability of the software product to avoid unexpected effects from modifications of the software. † â€Å"The capability of the software product to be adapted for different specified environments without applying actions or means other than those provided for this purpose for the software considered. â€Å"The capability of the software product to be installed in a specified environment. † â€Å"The capability of the software product to co-exist with other independent software in a common environment sharing common resources. † Changeability Stability Adaptability Installability Co-existence Replaceability â€Å"The capability of the software product to be used in place of another specified software product for the same purpose in the same environment. † Table 3: Additional developer related quality attributes from ISO 9126 model 3. 1. 4 FINAL ATTRIBUTE LISTAfter anal yzing the above mentioned attribute lists and completing the preliminary studies, the list could filter down to the following for the current study. 1. Correctness 2. Testability 3. Changeability 4. Stability 5. Installability In the following sections, each of above attribute will be discussed in terms of their quality characteristics. 3. 1. 4. 1 CORRECTNESS SEI defines correctness as â€Å"The degree to which a system or component is free from faults in its specification, design, and implementation†[23]. McCall attributes correctness through[16]: †¢ †¢ †¢ Traceability Completeness ConsistencyThrough traceability, it makes possible to know the relationships of each module or component and thereby higher confidence states correctness. Completeness assures that there are no parts left in terms in executing a function of a system or a procedure; thereby 100% completeness ratio guarantees correctness. Inconsistent systems or functions will lead to higher error pro bability; therefore it is a part of correctness. Through the initial discussions with some key personnel, it was revealed that these characteristics are equally hard to reach to achieve Correctness. . 1. 4. 2 TESTABILITY SEI defines testability as â€Å"The degree to which a system or component facilitates the establishment of test criteria and the performance of tests to determine whether those criteria have been met†[23]. Both McCall and Boehm have attributed testability to quality assurance on following characteristics[16, 18]: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Simplicity Instrumentation Self-descriptiveness Modularity and structuredness Accountability Accessibility Communicativeness. Simplicity of applications will make easier in testing comparatively to complex applications.Instrumentation makes possible to put probes in the system in order to deduce test data. Self-descriptive systems have inbuilt help or system documentation which will be sufficie nt to understand the system by going through. Modularity helps in isolating system tests which structuredness denotes consistent organization of the system. Accountability on system for which it is possible to measure the usage of the code[19]. Such measurements are typically covered by debugging tools, which exist specifically for programming languages. Accessibility of a system allows usage of its parts in a selective manner[19].This allows in creating flexible test scenarios. Through communicativeness, systems make easier to understand inputs and output, which makes easier to compose test cases. 3. 1. 4. 3 CHANGEABILITY ISO defines changeability as â€Å"The capability of the software product to enable a specified modification to be implemented†[24]. Changeability is an attribute defined in ISO 9126 and lacks supporting characteristic definitions. However changeability could be achieved through: †¢ Aiming simple solution rather than complicated systems as by nature si mple applications are easier to change. Low coupling of individual modules of a system as lower interactions make easier to change individual components. †¢ Designing the systems change in mind from the beginning while keeping application evolution. 3. 1. 4. 4 STABILITY ISO defines stability as â€Å"The capability of the software product to avoid unexpected effects from modifications of the software†[24]. Therefore stability in this context does not denote the ability of the system to show stable behavior when used. However, if modification often results in unexpected behavior, there will be a high impact on stability.Stability is directly influenced by Changeability. Low changeability is likely to show low stability. This will depict the fact that, trying to change a low changeable system will lead to a greater risk of instability. 3. 1. 4. 5 INSTALLABILITY ISO defines Installability as â€Å"The capability of the software product to be installed in a specified enviro nment†[24]. Installability requirements are generally specified in the form of an installation process. The target environment in this case will have to be known at the development time.Installability is measured as a percentage exercised of the total specified Installability requirements. In the Sri Lankan context, Installability is commonly referred as Deployability. 3. 1. 5 RELATIONSHIPS OF VARIABLES Having identified the variables and attributes, it had been decided to limit the study to following variables, after interviewing key quality assurance personnel in target organizations. Based on their arguments, on applicability to offshore organizations, the best suited variables have been selected for the study. Dependent Variable: Effectiveness of Software Quality Assurance Independent Variables: . Correctness a. Completeness b. Consistency 2. Testability a. Simplicity b. Modularity c. Structuredness 3. Changeability a. Simplicity b. Coupling 4. Stability a. Changeability 5 . Installability Having identified the variables, following relationships have been derived based on the reviewed literature in the previous section. Correctness Testability Effectiveness of Software Quality Assurance Changeability Stability Installability Independent Variables Figure 6: Schematic diagram for conceptual framework Dependent Variable 3. 2 HYPOTHESES FORMULATEDIn order to statistically test the derived conceptual framework, following hypotheses have been formulated. Since the study is targeted to test each independent variable separately, hypotheses also have been formulated independently to each independent variable. H01: there is no relationship between the Correctness of software developed and released to QA team), on the effectiveness of software quality assurance approach. HA1: the greater the Correctness of software developed and delivered to QA team, the higher the effectiveness of software quality assurance approach.H02: there is no relationship between the Tes tability of software developed and released to QA team, on the effectiveness of software quality assurance approach. HA2: the greater the Testability of software developed and delivered to QA team, the higher the effectiveness of software quality assurance approach. H03: there is no relationship between the Changeability of software developed and released to QA team, on the effectiveness of software quality assurance approach. HA3: the greater the Changeability of software developed and delivered to QA team, the higher the effectiveness of software quality assurance approach.H04: there is no relationship between the Stability of software developed and released to QA team, on the effectiveness of software quality assurance approach. HA4: the greater the Stability of software developed and delivered to QA team, the higher the effectiveness of software quality assurance approach. H05: there is no relationship between the Installability of software developed and released to QA team, on the effectiveness of software quality assurance approach. HA5: the greater the Installability of software developed and delivered to QA team, the higher the effectiveness of software quality assurance approach. RESEARCH DESIGN Research design will outline the roadmap of achieving the research objectives thorough the identified variables and theoretical framework. Details of study Purpose of the study Type of investigation Extent of researcher interface Minimal: studying events as they normally occur and defining a framework Study setting Measurement Measurement and measures Effectiveness of Software Quality Assurance in Emerging Offshore Development Enterprises in Sri Lanka Descriptive: quality evaluation framework Hypothesis testing: to validate the evaluation frameworkCorrelation: study of correlations to effectiveness against evaluation factors Noncontrived: study in real business environment Quality factors and their applicability through quality matrices and Likert scales Data analysis 1. Classification of data 2. Goodness of data Unit of analysis Sampling design Time horizon Data collection method 3. Hypotheses testing Individuals based on job categories in Offshoring organizations Judgmental sampling of individual in the entire population of offshore enterprises Crosssectional Interviews, Questionnaires, Observations Figure 7: The research design 4. 1 TYPE AND NATURE OF THE STUDYThe study was an empirical study through analysis of responses to the questionnaires which was formulated through the conceptual framework. 4. 2 DATA COLLECTION METHODS Since the study is on offshore software development organizations, it has been decided to collect data from all registered companies in Software Exporters Association Sri Lanka and seven other offshore software development organizations in Sri Lanka. There were forty seven registered members as of first August, 2007. Questionnaires were distributed to the key quality assurance person or to the most senior quality assurance person in each organization. . 2. 1 QUESTIONNAIRE DESIGN A structured questionnaire was used to gather responses apart from the preliminary interviews. The questionnaire is divided in to four main sections. Section one has eleven questions, capturing organizational demographics of the responder. Section two has six questions, to capture responder’s personal demographics. Section three is the main section of the questionnaire which captures organizations’ software quality assurance, project specific demographics and responses to test the conceptual framework. Section four is targeted to capture additional information for the conceptual framework. RESULTS OF DATA ANALYSIS Responses received had been categorized to qualitative data and quantitative data. Qualitative data had been used to understand the responder’s and company background. Quantitative responses, where the scale data is measured have been assigned scores as per following table for statisti cal analysis. Response Selected Strongly disagree Disagree Neutral Agree Strongly agree Score Assigned 1 2 3 4 5 Table 5: Rates given for questionnaire responses Each response was individually assessed to ensure data validity and integrity.Incomplete responses have been followed up with the responder with available contact information and have been able to complete in many instances. For the blank responses, score three was assigned in case the question is not applicable to the responder’s organization. Following summary shows the statistics of the questionnaire distribution and responses received. Number of Organizations that Questionnaire had been sent 47 SEA registered companies + 7 other offshore companies Total Responses Received 39 Invalid / Unusable 2 Number of Valid Responses 37Table 6: Statistics of questionnaire distribution responses received 5. 1 PILOT STUDY To test the primary data a pilot study was run among fourteen Quality Assurance Engineers at an offshore so ftware development organization, using a draft questionnaire. On the scale of reliability in order to treat results with credibility[25] and the internal consistency of the draft questionnaire, was checked by using Cronbach’s alpha coefficient. The alpha coefficient should be above . 7 for the scale to be reliable[26]. The overall Cronbach’s alpha coefficient was . 81, thus the questionnaire was considered to have a good internal consistency and suitable for collecting the data for the main study. Details of Cronbach’s alpha are discussed under Analysis of Reliability Section, below. 5. 2 PRELIMINARY ANALYSIS All thirty seven organizations selected as valid responses are exporting software. 89. 19% of the selected organizations are locally owned while 10. 81% of organizations which are in Sri Lankan operation are owned by foreign parties. 64. 86% of the target organizations are project based companies while 21. 2% of the organizations focus only on their own pro ducts. However 13. 51% of the organizations undertake client projects while they market their own products. 10 8 No. of Organizations 6 4 2 0 1. 00 2. 00 3. 00 4. 00 5. 00 6. 00 7. 00 8. 00 12. 00 14. 00 No. of years in Sri Lankan Operation Figure 8: Analysis of organizations against number of years in operation According to the above graph, most of the Sri Lankan offshore organizations under the current study have started their operation two years before. 75. 68% of the responders were males and the balance 24. 32% were females.The average age of responders was 30. 11 years. On an average, they posses one year of experience in their current position in the respective organizations. The following chart represents the education level of responders. 30 25 20 Count 15 10 5 0 Non IT Graduate IT/Comp. Science Post Graduate Graduate Deploma MSc/MBA/Post Graduate Degree Other Education Level Figure 9: Education level of responders Majority of quality assurance heads in the target organizat ions posses Information Technology or a Computer Science degree. 3. 03% Little Early 9. 09% On Time 24. 24% Too Delayed 3. 64% Little Delayed Figure 10: Project completion against estimates Responders were asked to select a completed project/product when they responded to part 3 of the questionnaire. The above pie chart highlights the project/product completion time against the estimates of the selected projects by the responders. From the selected projects/products, majority have been completed with a little delay from the estimates. Mean and the variance are calculated for each question under each independent variable and the dependent variable through the assigned scores as per Table 5.Question No. Question Mean Variance Effectiveness of Software Quality Assurance 18 19 20 21 22 23 Software QA is a very important discipline in our organization Without QA our products/services will not meet current level of customer satisfaction Our Software QA approach/practice helps us in winnin g new businesses Our organization has adequate number of QA Human Resources Our organization has invested enough in Software QA tools Our Software Development or any other Process has considered QA as a major practice 3. 622 4. 081 3. 811 3. 919 3. 514 3. 865 0. 686 0. 99 0. 658 0. 465 0. 812 0. 842 Correctness 30 31 32 33 34 35 36 â€Å"If the systems or components we deliver meet specifications to 100%†, we can say that it’s a high quality factor Systems or components we deliver, always met specifications Uniformity of functionality/operations/navigation of the designed system always contributed to high quality System maintained Uniformity of functionality/operations/navigation across individual functions If a function of a system, completes its execution without in between failures, we can say it is a high quality factor.Our systems do not fail in executing a function or procedure to its completion Our QA team measures our systems, whether they meet specifications o r not 3. 703 3. 568 3. 703 3. 324 3. 243 3. 243 4. 108 0. 604 1. 141 0. 715 1. 003 0. 745 0. 634 0. 544Testability 37 If all functionality/operations/navigation of systems could be tested enough, then we can say it denotes high quality All the functionality/operations/navigation of our systems are properly being tested by our QA team Even the complex operations of our systems are represented by simple user interactions in order to make applications simple and user friendly Our applications are decomposed in to manageable modules in implementation in a practical manner Consistent organization of modules/code are evident in our applications Our QA team measures or put emphasis on testability (Simplicity, Modularity, structuredness) of applications during the QA cycle 4. 595 0. 303 38 4. 514 0. 312 39 4. 297 0. 270 40 3. 946 0. 330 41 3. 838 0. 417 42 4. 432 0. 308 Changeability 43 If a product allows a specified modification to be implemented without much difficulty, then we can say i t denotes a high quality factor Our systems do not need much effort to accommodate minor specification changes (i. e.Adding a new field to a form) at implementation or quality assurance stage Our systems maintain low interactions between individual modules, therefore it is easier to change individual components without affecting others Our QA team measures put much emphasis to test changeability and stability of systems during the QA cycle 4. 000 0. 111 45 3. 946 0. 164 46 3. 838 0. 251 48 3. 919 0. 299 Stability 44 If the systems avoid unexpected effects after modifications, it denotes a high quality or it’s a high quality factor After the design changes done to one module, our systems have very few side effects to other modules Our QA team measures put much emphasis to test changeability and stability of systems during the QA cycle 3. 595 . 359 47 3. 703 0. 437 48 3. 919 0. 299 Installability 49 If the system could be installed in a specified environment without challenges, it denotes high quality or it can be considered as a high quality factor Our systems do not get challenged during the installation in the agreed/specified environment Our QA team measures Installability of systems they test 3. 568 0. 863 50 3. 162 3. 541 0. 862 1. 311 51 Table 7: Means and variances of questions Frequency distributions of responses to each of above questions have been presented in Appendix 2. 5. 3 SECONDARY RESULTS ANALYSIS Primary data is further analyzed to derive more meaningful results.For statistical analysis, the ratings gathered through individual questions were summed up to derive scores for individual independent variables. Variable = sum of marks for relevant questions I. e. Correctness = Q30 + Q31 + Q32 + Q33 + Q34 + Q35 + Q36 Sample Mean, where, n = sample size, and = scores Sample Variance, Standard Deviation, Following table illustrates the statistics of independent variables, which denotes the effectiveness of quality assurance. Standard Deviation 0. 569 0. 552 0. 422 0. 327 0. 445 0. 752 Variable Effectiveness of QA Correctness Testability Changeability Stability Installability Mean 3. 802 3. 556 4. 270 3. 926 3. 739 3. 423 Variance 0. 324 0. 305 0. 178 0. 107 0. 198 0. 566Table 8: Basic statistics of independent variables and the dependent variable Following is the graphical illustration of above statistics. 4. 500 4. 000 3. 500 3. 000 2. 500 2. 000 1. 500 1. 000 0. 500 0. 000 Mean Variance Std. Div. Figure 11: Basic statistics of independent variables According to the above illustration, Testability contributes to QA effectiveness most while Changeability remains at the second position. Installability was rated as of least significant to the QA Effectiveness in the subject domain. 5. 3. 1 ANALYSIS OF RELIABILITY OF DATA Cronbach’s alpha measure is used to determine how well the target independent variables measure single, unidimensional QA Effectiveness latent construct.Cronbach's alpha can be written as a function of the number of test items AND the average inter-correlation among the items. N where, N = number of items and = inter-item correlation among items. Cronbach's Alpha Based on Cronbach's Standardized Alpha ( Items . 912 . 918 Table 9: Reliability statistics N of Items 28 Cronbach’s alpha for all twenty eight questions is 0. 912, which denotes that the collected data is acceptable for the research. 5. 4 HYPOTHESES TESTING Analysis had been done to test each set of hypothesis to find out whether there are relationships defined through the hypotheses exist among independent variables and the dependent variable.The correlations between the factors hypothesized to effectiveness of quality assurance shown in the following table: Set of Hypothesis/Independent Variable H1:Correctness H2:Testability H3:Changeability H4:Stability H5:Installability ** Correlation is significant at the 0. 01 level (2-tailed). Pearson Correlation/ Effectiveness of QA . 678** . 589** . 559** . 728** . 613** Sig. (2-tailed) . 000 . 000 . 000 . 000 . 000 Table 11: Correlations between hypotheses for quality assurance Hypothesis H1: According to Hypothesis H01, Correctness which is influenced by Consistency and Completeness has a positive relationship to effectiveness of software quality assurance approach. Since this hypothesis is supported by the data analysis (Sig. value was . 000, p

Kfc and the Global Fast-Food Industry in 2003-2004

KFC and the Global Fast-Food Industry in 2003-2004 Course: MGT 710 [pic] 1. Executive Summary This paper analyzes the market situation of the major U. S. fast-food firms in Latin America in 2004 from the perspective of the KFC Corporation. By analyzing political, economic, cultural, logistical, and competitive forces, a potential strategy for KFC to successfully establish a strong position in Central and South America is proposed. Through a thorough analysis, it was determined that KFC should establish wholly-owned subsidiaries in Mexico and Brazil to manage operations in Central and South America, respectively. After a strong position is established in these countries, KFC should then open franchises in Central America, Argentina, Colombia, Venezuela, and Chile. 2. Problem 1. Expanding into Latin America From 1993 to 2002, KFC dominated the chicken segment of the U. S. fast-food market. Their market share, however, decreased by 13. 4% over that 10 year period (Exhibit 4, 553). As the fast-food market matured, firms began to focus on globalization to continue growth. By early 2004, 56% of KFC’s restaurants were outside of the U. S. (558). Their initial focus was on Mexico, Puerto Rico, and the Caribbean, where they established dominance among competitors. Their struggle was in expanding beyond those markets. In their attempt to expand into Central and South America, KFC was met with many challenges. Many Latin American markets had not adopted the fast-food concept and preferred a more leisurely dining experience. The intense competition with major U. S. fast-food chains made it very risky to enter a new market. The geographic distance from the corporate offices made it difficult to control standards and quality. To continue growth, KFC would have to develop a strategy to overcome these obstacles and expand into these markets. 2. Strengthening position in Central America KFC initially expanded into Mexico, Puerto Rico, and the Caribbean due to geographic proximity and existing political and economic ties to the U. S. They were able to establish dominance in these markets because they had first-mover advantage and the local cultures accepted the fast-food concept. To further expand into Central America, KFC will have to develop a strategy to leverage their strong positions in Mexico and the Caribbean. They will have to consider factors such as the business model, global integration, national responsiveness, and mitigating risk. 3. Breaking into South America KFC had attempted to enter Brazil, with limited success. Political, economic, and cultural challenges had prevented KFC from gaining a foothold, and subsequently forced them to pull out of the market. Other countries in South America had little competitive presence, but had significant barriers to entry. In addition, the farther away the countries are from the corporate offices, the more expensive and logistically difficult the operation becomes. To enter these markets, KFC would have to carefully weigh its options to establish a presence and mitigate risk. 3. Analysis 1. Industry analysis 1. Basic economic characteristics Latin America is home to more than 550 million people. It has an aggregate GDP of more than $4 trillion. Figure 1 shows that Brazil and Mexico have the highest GDP. However, Argentina, Chile, and Costa Rica have the highest GDP per capita. [pic] Figure 1 – Latin America GDP (Source: http://en. wikipedia. org/wiki/Latin_America) 2. Competition In general, Central America and Brazil are the markets most penetrated by the large U. S. fast-food chains. McDonald’s is the dominant competitor in Latin America, with 584 stores in Brazil, 261 stores in Mexico, and 203 stores in Argentina. KFC follows with 274 stores in Mexico and 134 stores in the Caribbean. Burger King operates 163 stores in Puerto Rico and 154 stores in Mexico. Wendy’s only operates 143 stores in all of Latin America (Exhibit 6, 559). To assess the competitive landscape, Porter’s Five Forces model can be used, as shown in Figure 2. For KFC, the highest levels of competitive rivalry are in Central America and Brazil. Most of South America, with the exception of Brazil, has relatively low penetration. The threat of new entrants is high within any market, as all of the major competitors are vying for the same markets. The threat of substitute products is also generally high, since fast-food chains must compete with established local restaurants that already cater to the local tastes and customs. The bargaining power of customers is medium in more developed countries such as Brazil, Mexico, and Argentina where customers are less price sensitive. In less developed Latin American countries, however, the bargaining power is high where most customers cannot afford high prices. The bargaining power of suppliers is medium in most countries where there aren’t a large amount of imports, but high in countries like Mexico and Brazil. [pic] Figure 2 – Porter's Five Forces (Source: http://en. wikipedia. org/wiki/Porter_5_forces_analysis) 3. Factors driving change As Latin American countries become more developed, they begin to adopt more global brands. As the internet penetrates these markets, users become exposed to global brands. Cultures begin to change as the world becomes a global market. While they do maintain local tastes and values, people begin to separate from traditions and become more modern. As economies become more developed, people begin to adopt the on-the-go lifestyle that we are accustomed to in the U. S. As countries like the U. S. drive globalization to foreign markets, trade barriers are often removed and countries begin to adopt foreign firms. 4. Relative strength of firms As previously stated, McDonald’s has the strongest position with 1,605 stores in Latin America. KFC follows with 650 stores, followed by Burger King and Wendy’s. McDonald’s is dominant in South America, while KFC controls Central America. 5. Rivals' next moves The most significant acquisition of note is McDonald’s purchase of Boston Market in 2000. Boston Market caters to the growing trend for healthy fast-food, as well as the casual, sit-down atmosphere that is popular in Latin America. While Boston Market does not have any presence in Latin America, McDonald’s could decide to leverage existing resources to expand there. 6. Critical success factors All franchise corporations are concerned with standards and consistency between units. While certain factors can differ from one region to the next, a general level of consistency is needed with regards to product quality and taste. It is critical that service and cleanliness are upheld to a high level of quality. Particularly in Latin American markets, the menus may need to be diversified and incorporate local flavors. With the great distance between Latin American markets and corporate headquarters, effectively executing logistics, distribution, and operations is critical to success. Effectively managing resources and keeping costs low will also be critical when entering new markets. With the political and economic events that may occur, the firm must be resilient to changes in the economy and trade regulations. Firms should seek to establish relationships with local governments in order to protect their interests abroad. 2. Strategic planning for foreign market entry 1. Identifying company's objective in foreign market entry The first step in developing KFC’s Latin American strategy is to identify the objectives for entering new markets. Some reasons to enter new markets would be to exploit an untapped market, obtain a competitive advantage, secure essential raw materials and distribution channels, and cutting costs by employing inexpensive labor. Currently, KFC has a large presence in Mexico and the Caribbean. This gives them a launching point to enter nearby markets. The nearby Central American countries have a relatively low presence from the large fast-food firms. The Central American region is home to approximately 40 million people. According to Figure 1, the Central American nations have a GDP of approximately $173 billion. This region has a considerably sized market, relatively low penetration, and proximity to KFC’s large presence in Mexico, making it ideal for entry. Brazil is the largest and most coveted market in Latin America. Unfortunately, McDonald’s has a large competitive advantage with 584 stores. KFC has failed in the past to enter this market, but the opportunity is still there. Establishing a position in this market would allow KFC to power investments in other South American markets. While they may not be able to dominate the market, it is a strategic location that would act as the locus for all South American operations. Argentina and Chile have $445B and $161B GDP, respectively, making them large attractive markets. They also have the highest GDP per capita in Latin America. While McDonald’s has a relatively strong position in these countries, there should still be opportunity for KFC to capitalize on. Other South American countries, such as Paraguay, and Uruguay, Have little competitive presence and a relatively low GDP. These countries may not have strategic value to the company. 2. Preliminary country screening After determining the objectives for each country, an analysis of advantages and attractiveness can be performed. To determine national competitive advantages, Porter’s diamond model is used, shown in Figure 3. Mexico, Brazil, Argentina, Colombia, and Chile stand out as the most developed Latin American countries. This indicates that advanced factor endowments such as infrastructure, skilled labor, and technology should be readily available. Demand conditions should also be most favorable in the countries with the highest GDP, as an active economy tends to increase demand for on-the-go meals. The most significant supporting industry is the poultry industry. According to the USDA, Brazil, Mexico, and Argentina have the largest poultry industries in the region. [pic] Figure 3 – National Competitive Advantage (Source: http://www. teagasc. ie/research/reports/foodprocessing/4984/eopr-4984. htm) 3. Risks in foreign markets In all Latin American countries, there is a high degree of political risk, due to the propensity of corruption and instability in governments. This is apparent even in the more developed Latin American countries. Many Latin American countries restrict the import of foreign goods, or give preferential treatment to adjacent countries. In addition, the distance from existing production and distribution channels imposes a great risk to the supply of goods to the more southern countries in the region. One of the main company factors is the shortage of skilled labor and high rate of turnover in Latin American markets. For KFC to succeed in any Latin American market, they will need to increase employee retention through training or benefits. 4. Capabilities, resources, and skills needed to succeed in foreign markets The key success factors were described in Section 3. 1. 6. It is important to note that the farther away the country is from existing trade channels, the more difficult it will be for KFC to control quality, standards, distribution, and logistics. Also, the less developed nations will be more susceptible to economic and political events that could devastate KFC’s interest in the market. 5. Fulfilling key success factors KFC’s key strength is their established dominance in Mexico. This position provides many financial and political benefits due to the NAFTA treaty. It also provides them with a strategic position to enter nearby Central American markets. They do not have established trade channels in most of South America, so it will be difficult for them to manage operations without a strong presence in at least one market. This is the main reason why Brazil is a key market to enter. Being that KFC is such a large company within an even larger conglomerate of fast-food chains, the firm should be able to withstand political or economic changes and a loss of revenue during the development stage. Overall, KFC fulfills the key success factors in Central America, but will need to establish a position in at least one major South American market in order to expand there. . Entering the target markets In determining how to enter the target markets, the level of global integration vs. national responsiveness should be assessed. Figure 4 shows the various strategies that can be employed given the appropriate level of integration and responsiveness. The markets in Latin America should be similar enough for KFC to keep menus, processes, and sta ndards consistent across all markets. Pricing and advertising may differ depending on the level of economic development and communications infrastructure in each nation. In addition, KFC would need to implement different business models depending on the proximity, size of the market, and cultural uniqueness. For this reason, KFC should implement a transnational strategy that would keep many aspects consistent, but some aspects unique between various markets. [pic] Figure 4 – Global Integration vs. National Responsiveness 7. Compare and rank targeted countries From the analysis performed, each Latin American market considered was ranked based on the variables discussed. By comparing GDP, geographic proximity, population, and relative penetration of competitors, Table 1 shows the countries scored and ranked. Economy |Competition |Proximity |Market size |Presence |Total | |Mexico |12 |12 |13 |12 |13 |62 | |Brazil |13 |13 |7 |13 |4 |50 | |Caribbean |5 |7 |11 |8 |12 |43 | |Puerto Rico |6 |11 |12 |2 |11 |42 | |Central America |3 |9 |10 |10 |9 |41 | |Colombia |10 |5 |8 |11 |6 |40 | |Argentina |11 |10 |3 |10 |4 |38 | |Venezuela |7 |8 |9 |6 |5 |35 | |C hile |9 |6 |4 |5 |8 |32 | |Peru |8 |3 |5 |7 |7 |30 | |Ecuador |4 |4 |6 |4 |10 |28 | |Paraguay |1 |2 |2 |3 |4 |12 | |Uruguay |2 |2 |1 |1 |4 |10 | |Table 1 – Results of market analysis 4. Recommendations 1. Markets to enter From the results of the analysis performed, KFC should operate company-owned units in Mexico, Puerto Rico, and the Caribbean where it already has a strong position. It should then open franchises in Central American markets to mitigate risk until a strong position can be established, at which point KFC should buy back the successful franchises. KFC should develop a wholly-owned subsidiary in Brazil and aggressively establish a strong foothold. This is not only one of the most attractive markets; it is also a critical strategic location to be the headquarters of South American operations. Once a strong position is established in Brazil, KFC should open franchises or joint-ventures in Colombia, Argentina, Venezuela, and Chile. Given the relatively low scores, KFC should not consider expanding further into Peru, Ecuador, Paraguay, or Uruguay. Although KFC already has operations in Peru and Ecuador, they are not strategically valuable and should be closed or sold if they are not consistently profitable. 2. Strategy for entry 1. Corporate strategy At the corporate level, KFC should focus on developing wholly-owned subsidiaries to act as the regional headquarters in Mexico and Brazil. This would allow KFC to centralize control over standards, quality, process, and distribution within those regions. This tiered structure would lessen the burden on KFC’s U. S. corporate management and provide more specialized attention to those local markets. To offset regional events that may affect all of Latin America, KFC should also consider entering markets in Europe and Asia. If an economic catastrophe were to hit Brazil, for instance, markets in all nearby countries would be severely impacted as well. The Yum! Corporation should also consider strategies to expand its other brands into Latin America as well to leverage KFC’s success. The multibrand strategy that has been so successful in the U. S. may prove successful in Latin America as well. 2. Business strategy At the business level, KFC should develop aggressive marketing strategies in countries where competitors have a strong presence. In Brazil, for instance, KFC will have to fiercely battle McDonald’s to gain market share. In less developed countries, KFC should enter cautiously and focus on mitigating risk. KFC should leverage their strong global brand and target the younger generation. Through internet marketing, KFC should be able to reach the young, modern generation that has a higher acceptance for the fast-food model. KFC should implement a transnational strategy in Latin America. While quality, service, and products should remain consistent throughout Latin America, KFC should develop unique strategies for marketing, pricing, and business models in each region. KFC should launch company-owned stores in high growth markets and enter the rest with franchises or joint-ventures until a strong position is established. In high growth markets, company-owned businesses would allow fixed costs to be spread across multiple restaurants, subsequently allowing for lower prices and increased margins. Franchising would leverage the expertise of local entrepreneurs with understanding of the local customs, language, and marketing strategies. This would help to mitigate the risk of entering unknown markets. 3. Functional strategy Regional franchises should interface with the wholly-owned subsidiaries in Mexico and Brazil. These subsidiaries would control management, distribution, standards, quality assurance, and advertising for their associated franchises. The Central and South American subsidiaries should focus on developing close ties with the governments in their regions. They should lobby to remove trade barriers between nations in order to streamline distribution. They should also focus on developing ties with the local communities in order to gain acceptance from local culture. KFC should develop specialized marketing campaigns for each region, depending on the similarities in culture. They should focus on targeting the young, career-minded demographic through internet marketing. Depending on the lifestyle habits of those individuals, they should also target them through appropriate media advertising. 5. Conclusion KFC is one of the dominant players in the global fast-food industry. They have sufficient resources to launch an aggressive strategy into Latin America. By leveraging their strong position in Mexico, KFC can successfully establish a strong position in Central America. By outsourcing management of Central American firms to a wholly-owned subsidiary in Mexico, KFC will be able to streamline operations and maintain control over franchisees. Although it will be difficult, establishing a foothold in Brazil is KFC’s best strategic option for entering South America. By aggressively marketing the younger demographic, KFC should be able to gain a considerable market share, even though McDonald’s maintains the dominant position. Once they have been successful in Brazil and a wholly-owned subsidiary is established, KFC can then begin to expand further into South America. By implementing this general strategy and addressing the factors and risks discussed in the analysis, KFC should be able to gain substantial market share and continue to grow the firm.

Coal Is Just Not Black Gold

COAL IS JUST NOT BLACK GOLD PREFACE Drawing upon the organisation in which author is familiar – Coal India Limited, largest coal producing company in the world, In this paper he critically analyses few existing policies implemented by Government of India and Coal India Limited in mining industry from past few decades, works through the complex problems around Coal mining in India and identifies few human resource management related problems and how they have contributed for the company’s stagnation in recent years. The author then critically analyses the issues, compare it with relevant literature and evaluate the limitations.Based on the literature and observations, he then proposes few strategic recommendations to improve organisational effectiveness both to Law makers and to company. INTRODUCTION Coal India Limited (CIL) is a Government of India Undertaking, Maharatna (Country’s Jewel) company which employees 400,000 people approximately as of April’12. In ended last financial year, with net annual sales of 15 billion dollars, and a net annual operating profit of 3 billion dollars approximately by producing coal from its 466 Coal mines across India and selling it to Power generation companies.It is the biggest and only listed company in the sector, where private companies are not allowed to compete, Thus accounting to 80% of Annual national production of Coal in India. CIL has five unions, which represent all the employees in the company. Since the company is only major coal producer and acts more like a monopoly in the sector, wages are low compared to Industry average in other countries. Coal India apart from producing coal on its own also gives few coal mines to private third parties for contract.These mines are smaller in size and remote for the company to allocate resources, hence they are contracted. This strategy of contracting coal mines and not having enough regulations around Coal production has led to few private contra ctors preferring illegal means of employment in these coal mines and not allowing private competitors to compete with Public sector companies COAL IN INDIA Indian Coal Industry currently occupies third position by producing 400 metric tons per year ( mtpy), after US (1100 mtpy and China 2400 mtpy.Within the country Coal mining is nationalized and accounts for 60 per cent of electricity production. Coal being crucial resource for economic growth, it is safeguarded by government by passing many acts, Indian Mines Act of 1952, Mines and Minerals Regulation and Development (MMRD) act are the key legislative act meant for protecting labour working in mining industry and governing mining and exploration in India respectively.After further revision in 1993 and 2002, National Mining Policy was outlined by Government of India whose objectives are mineral development through exploration in both Onshore and Offshore fields. Policy is meant to promote mineral industry standardize training and r esearch, considering future needs of the country with minimal impact of nature and ensure safety and health of all people involved in the industry. These objectives do make a progress in standardizing the rules, however it has to clearly describe how the law handles informal mines and how to deal with illegitimacy under current law.According to a Journalist expert of small mines Chakravorty (2002), Illegal mines in India constitute of 88 per cent of the total reported mines in count, producing approximately 10 per cent of the total value of mineral production of the country. This number has increased in the last decade , where 30 per cent of illegal mining. These mines comprise of poor people toiling for lowest wages and almost negligible security, health and safety conditions. According to MMRD Act, Mines Act and other Environmental Acts, all minerals are broadly classified into â€Å"Major† and â€Å"Minor† and rest the responsibility of mining with the state.MMRD ha s further classified mines has Class A or Class B determined based on the mechanical equipment used and Labour employment the mine generates. Based on financial investment, Labour work, Depth of deposits and technology deployed, mines are simplified to different Classes and given for contract. Typically Class B mines are given for contract to subsidiaries by CIL , One such example is Eastern Coal Fields, in state of Meghalaya, where even though they mines are Small, they are labour intensive and needs to have high security and health standards.National Institute of Small Mines (NISM) , a governing body has classified mines based on the production amounts. From various acts above, it can be understood that legal definitions hinge on physical dimensions of mine, which is in turn is used to determine the effort and time required to mine. However for a complex economic activity like mining with close social linkages and unique to the nature of the mine, such reductionist approach and si mplifying mines obscures the diversity of mining practices across scales.As large formal processes of mineral extraction, processing and use cannot be applied to such small mines they tend to be rejected and Illegitimated. Clearly, existing laws have loopholes which are inadequate in handling perennial Informal and Illegal mining. Also Illegal miners cannot lobby for recognition, since current structure of the sector is monopolistic with over 80% reserves under CIL. This situation has resulted in dire consequences and well-being of Local society around colliery areas and environment. COAL INDIA , A MONOPOLYCoal India Limited (CIL) established in 1970, is responsible for mining the coal, while the ownership of which is vested with the state. Consequently the organization has played a critical role in meeting state’s growth plans. The decision making on mineral resources is influenced by engineers, geologists, bureaucrats and political groups and governance is solely vested wit h CIL. The Coal Mines Nationalisation Bill, 2000 allows state governments to mine coal only if CIL certifies with no Intention to mine certificate.The Ministry of Coal ( MoC ) has awarded CIL a near monopolistic power, giving rise to tight control on its country’s reserves and lack of transparency in many areas. Because of lack of more advanced technology for procuring coal and other social costs, it is also noted that mining cost of Coal in India is 35% higher than other exporting countries like Indonesia, Australia, because of poor productivity ( 3 tonnes / man shift ) as compared to 12 tonnes / man shift in Australia.As a solution privatising of coal sector is attempted, however it is still in preliminary stage. The challenge to policy makers in this regard is to ensure how to safeguard the wealth from illegal mining and environment within the region, at the same time benefit people in mining areas by making laws that do not outcaste people and their livelihoods as illegit imate also ensure greater transparency and standardization in pricing of coal.In coming years, demand for coal in the country is expected to increase multi fold, according to IEA 2006, Reuters 2007, hence the need for government to restructure the sector is critical to not only to answer many global implications concerning climate changes and Kyoto Protocol and but also streamline the definite increase in informal collieries which will continue to meet the demands of local consumers and ensure they meet minimum security and health standards of living. SOCIAL IMPACTCoal India Limited has destroyed environment in many coal traces with no or little concern for social implications, Inspire of Forest and environment controls. This behaviour can be attributed to sole monopoly power vested with one company on nation’s coal production. There were other instances of violation of human rights noticed while employee people at Coal mines One such example, It was noted that at Janita Hill s, Meghalaya , India. 5000 children less than age of 18 was trafficked from Assam, Nepal and Bangladesh and employed by coal mines in Meghalaya which are contracted to private contractors by CIL .Many such instances were noticed not only in eastern part of India , but also across many nations’ coal traces in West Bengal, Andhra Pradesh, Karnataka states. Inspite of the Mines Act , 1952 which doesn’t allow bonded labourers or people below the age of 18 to work. Sometimes even without environment degradations, large mining projects have impacted social lives with serious implications for the livelihoods of local communities around in and around coal traces, where people were forced to leave their traditional occupations for scavenging in left over coal traces, which are not economically viable for contractors.Such instances were noticed in Jharkhand, where government and company officials have neglected social and cultural issues around the mining areas for years impacti ng the livelihoods of people living in these areas. This has created a need for extreme leftist or Maoist Movements to resist such acts– as observed by Chandra Bhusan, Associate Director of Centre of Science and Environment. According to him Indian Mineralised tracts are mostly in conflict Zones, since Company officials, technical experts and governing bodies never seriously engaged with social issues.Current legal instruments are anti-poor and of colonial vintage and unable to deal with today’s realities. Many Civil Non-Governmental Organisation groups have taken a non-violent approach to use existing judicial mechanisms such as filing Public Interest Litigation(PIL) to bring justice to local communities whose daily lives are impacted. Ex : PIL filed against Eastern Coalfields Limited by Mazdoor Sabha in Country’s Apex court. Although Supreme Court Panel has lashed against CIL, It remained unresponsive SOCIAL LICENSE TO OPERATEOver the past 2 decades many chang es were noticed in global mining industry. There is increased and concerted global efforts where nine major global companies supported a global scale project called Mines, Minerals and Sustainable Development (MMSD) Project ,whose direct outcome is to the increasing charges of environmental destruction and irresponsibility on coal mining companies to care socio-cultural changes caused by them in areas of operation are laid out and followed globally.MMSD group of companies agreed that Mining Company in developing countries not only needs Legal license to operate but also Social License to Operate. Under this backdrop At CIL, mining engineers who make all the plans , mining project itself assumes more importance over people living in these mining operations. This view was observed from many bureaucrats in India, CIL uses their rationale that Land Acquisition Act or Coal Bearing Areas Act does not provide assistance for Local people around the impacted areas, thus ignoring local needs and perpetuating illegal mining under its belt.ILLEGAL COAL MINING AND UNSAFE WORKING CONDITIONS In energy-hungry country like India, demand for coal has increased in the last 2 decades, coal production remained fairly stable, causing coal prices to surge in recent years. The lack of reform and rising demand have spawned a seedy underbelly of â€Å"Coal Mafia† and a class of workers that illegally scavenge the mines for coal. The Coal Nationalization act in 1952, revised in 2000 has made it legal for just the centre or state governments to authorize coal mining, i. . , only government owned companies, its subsidiaries and contracted third parties. Apart from illegally mining, scavenging from abandoned mines is another source of obtaining coal. In West Bengal state for instance Raniganj-Jharia region there are many abandoned mines by CIL subsidiaries which have neglected filling up the mines with sand, as per regulation , consequently villagers have ready access to scavenge.It was also observed that open abandoned underground mines release hazardous gases like Carbon Monoxide which are hazardous and can kill people who go to scavenge left over coal. Scavenging can occur in both underground and open cast mines. The later assumes greater significance. In these areas Poor Security of mines storage and transportation was observed where coal is transported with head baskets into awaiting trucks. Coal India also delivers coal to local sale dumps located near the mines and big dumps, pilferage takes place regularly on major highways from long distance.In eastern India, It's not unusual to see women and children work the unsafe mines with the most rudimentary tools. Most are drawn to it in the hopes of earning a better  income. According to World Bank, over 20 million people depend on mineral resource extraction for living. When this number is compared with formal mining industries it is immensely large. PAUPERIZATION IN COAL MINING AREAS IN INDIA In colliery areas where CIL operates, significant amount of social and environmental transformation takes place over a period of time.Within bureaucratic and political circles the notion that Coal as a commodity is being excavated for greater common good by a Central government owned body like Coal India Limited, represents lack of attentions to people’s interests and social impacts of mining coal. Decay of social fabric, erosion of traditional livelihood, rising levels of urbanisation are some of the socio impacts which vary according to physical proximity of the mine to livelihoods.Between 1971 and 2001, people in Ranijang region in west Bengal have slowly moved away from agriculture as an occupation to mining and scavenging , even in non-colliery areas. Women especially from downtrodden caste and below poverty line are most impacted by this migration. In areas of Jharkhand gradual pauperization of people around coal mining areas have taken place in which traditional land and water rig hts in the region in which they live are lost and few negligible short term benefits of mining are accrued which will is leading to steady extinction of tribal people in remote coal mining areas.In most of the cases, links between the legal and illegal coal mines are more complex than above example. Both the groups either co-exist or coal mining company complains against scavenging to local authorities as law and order problem, however bureaucratic reply is usually pointing the company should take care of its resources. Hence in the existing legal setup both parties formally or informally will try to co-exist peacefully.Similar setup exists between large scale and small scale transportation in centralized control manner controlled by mafia group. Part of the root cause for such inefficient maintenance, transportation and distribution systems lies with CIL and its subsidiaries where they are not standardized and do not consider domestic consumer, In the entire eastern region CIL does n’t have large depot to cater the needs of domestic consumers. Hence often industry owner applies for a license to grant coal to fire the furnaces or generate power.This permission is difficult to get and consumer need to bribe any intermediate parties from company officials, bureaucrats and politicians leading to significant overhead cost for the company, there by preferring a shorter and simpler coal extracting methods by joining hands with mafia system or illegal mining. STRATEGY MAKING PROCESS FOLLOWED BY GOVERNMENT OF INDIA AND COAL INDIA In the above sections, various issues faced by the community, company and the system at large are explained.To understand the issue in hand better and to analyse the issues lingering the sector better, Government’s and Company’s behaviour with larger society is compared with few Strategy making processes. According to author, current system has a predefined set of objectives and is thriving to achieve that without consider ing other subjects involved in entire scenario. This behaviour aptly fits into Classical approach highlighted by Grant (2008).The reductionist approach by MMRD and other acts by the Government can be mapped to this approach Government trying to oversimplify the complexities involved in various mines based on certain factors like Size, productivity etc. , such approach leads to formation of clear goals to the Company and doesn’t allow the company to recognize the emergent behaviour of the employees, people livelihoods in affected areas. Below is a modified representation of Grant’s Classical approach of Strategic Human Resource Management.Figure 1 : Common elements in successful Strategies , Adopted from Grant ( 2008: 7) Author notices that because of monopolistic nature of coal mining sector in India and sufficient support from political circles, there isn’t sufficient pressure on the company for Profound understanding of all the groups involved. In Most of the cases, Long term agreed objectives takes more priority over other priorities mentioned like Profound Understanding of all groups involved, Regular Appraisals of employees involved and Environmental awareness.Hence the company will focus on financial targets to achieve more than Social Impact it creates in thousands of people it impacts. Thus it can be stated that Classical approach readily doesn’t fit in or help in solving the issue. Current Intended strategy of Government of India, behind Nationalization of Coal mining in 1952 is to protect the reserves from exploitation by private parties is well understood, however with the changing times , growing demand and involvement of various other socio-political and technological factors, Intended Strategy is not being completely realized.There is a deliberate effort on its part , to ensure current intended strategy works by allowing illegal mining and scavenging by local people in coal mining areas in order to peacefully co-exist and continue to mine in coal traces. However by comparing the number of court petitions filed by local tribes in Jharkhand, WestBengal living nearer to various collieries, comparing the productivity / person and high cost of mining compared to other export countries it can be understood that , slowly they are moving towards an unrealized strategy where focus is only on net volumes realized and not considering environmental impact .EMERGENT STRATEGY OF STRATEGIC HUMAN RESOURCE MANAGEMENT In practice organization approach can be explained by Emergent Strategy approach as suggested by Mintzberg (1987) are relevant. According to March (1976) and Mintzberg (1987), planned strategies are not always realized; strategies can often emerge and evolve over a period of time. The Strategy should be moulded over action . Similar such fluid approach can be applied, where an additional dimension as mentioned below in Emergent strategy is required to recover from unrealized strategy and to streamlin e the company’s goals.Privatization of coal mining along with a holistic review of existing mining policies impacting the sector is the emergent strategy to improve the productivity, transparency of coal production and livelihoods of people involved. However its application remains a challenge. Figure 2 : The Emergent Strategy, source from the strategy concept, California Management Review, Mintzberg. H, 1987. Systemic Approach of Strategic Human Resource managementOn similar lines to Emergent Approach of Strategic Human resource management, Whittington(1993,2001) systemic approach provides more answers to the issue, where Strategy is shaped by the social system the company operates within. This strategy is shaped by cultural and institutional interests of broader society, since organisations and decision makers are embedded in network of social relations, hence adept understanding of the needs of the society at large and acting accordingly should be key . OUTCOMES Profit-Max imising PROCESSESDeliberate Emergent Pluralistic Classical Evolutionary Systemic Processual OUTCOMES Profit-Maximising PROCESSES Deliberate Emergent Pluralistic Classical Evolutionary Systemic Processual Figure: 3Whittington’s (1993) generic perspective on strategy Author believes Emergent and Systemic approach to planning a strategy is apt and required by all parties involved( both policymakers and industrialists ) in order to operate in complex world with various socio-geo political limitations. This it can be concluded that to effectively manage human esources and to improve organisation performance , integration between human resource management and business strategy holds key for its success. (See Holbeche, 1999; Schuler and Jackson, 1999). EMPLOYEE RELATIONS IN COAL INDIA Coal India has both union and non-union based workers. Starting from 2009, it has been recruiting more than 1000 employees every year from premier management and technology schools across India. This i s one of management initiatives taken to inject fresh blood and reduce the average age of its labour force.While the decision to recruit young highly talented workforce as change agents is appreciable, 30 to 40 per cent of these employees quit every year for below reasons. 1) Staff felt they were demoralized by senior staff from the beginning. 2) Apart from salary issues, the staffs were under-utilised and faced hostility from seniors. 3) While recruitment, the staff were promised a grade above engineers however not fully implemented even after raising the concern to top management.Hence realized there are limited growth options. Treasurer of Coal Mines Officers Association of India partially accepted the conditions and commented this situation reflects the larger problem of stagnation within the organization It is understood , if the situation continues, the county’s top coal producer is likely to grapple with unprecedented HR crisis across its executive cadre because of lim ited growth options and 6000 of their employees mostly from executive cadre getting retired every year.Falling on relevant literature , Kochan . T , 2000 has stated that Asian model of employee relations is designed to support an economic strategy that emphasises human resources as a competitive asset- A strategy that requires a highly skilled and committed workforce and a cooperative labour management culture and system. In Coal India, it can be observed that there are required structures in place like Unions for labour management, since the company is too big, management of resources is challenging.Since the company works in a monopolistic structure, there isn’t healthy competition which will push the management to focus on current internal and external problems with more vigilance rather than its current laid back approach and bureaucratic functioning. It can be noted that HR strategies should operate consistently as is a vital part of the overall business plan (Stroh and Caligiuri, 1998).Within the organisation senior management there should regularly conduct analysis regarding the kind of HR competencies needed in the future, and accordingly core HR functions (of procurement, development and compensation) should work together collectively to meet such needs. (see Holbeche, 1999). The 2 core aspects which organization has to focus is Integration of HRM into the business and corporate strategy, and the devolvement of HRM to line managers instead of personnel specialists, thereby ensuring company doesn’t have power blockages and allow it to function smoothly.Brewster and Larsen (1992: 411–12) define integration as ‘the degree to which the HRM issues are considered to formulate long term business strategy’ and devolvement as ‘the degree to which HRM practices involve line managers has responsible rather than personnel specialists’. Similarly (Budhwar and Sparrow 1997; 2002; Hope-Hailey et al. , 1997; Truss et al. , 1997; Sisson and Storey, 2000) also highlighted the concept of devolvement for quicker response in large scale organizations. This process, highlights the need of prioritizing the issues and developing/ training more motivated employees for effective control.Instead of having a narrow hierarchy with in organization, there by leading to stagnation, it can be learnt from this theory that local problems should be resolved by local managers at grassroots level affording more time for senior management. Applying this theory to Coal India Limited, It can be understood that mine managers should be more proactive is liaising with local governments and bureaucracies to form an amicable solution for betterment of society as well as company. Company senior management should work closely and provide required assistance and authority to mine managers to perform their duties.In this context, the Coal India Limited management can learn from other global peers to understand how to deal with empl oyee relations related issues effectively. Below is the summary of one such example stated by an author Young-Kee Kim, in his report on Employee relations. LG group from its inception till 1987 achieved high rates of economic growth with support from Government by suppressing unions, however in the period of 1987-89 it has faced severe hostility and strikes from its workers because of which resulted in 740 million dollars of loss. Post 1990 till 2005, as a result of research and many extensive internal surveys the roup has laid importance to new group level policy that emphasis the promotion of human dignity for employees and the maximisation of customer satisfaction. Voluntary employee participation in workplace organisational improvements has been identified as a critical success factor. Consequently the rapid realisation of co-operative labour relations and enlightened ER practices has been recognised as tasks of major significance my member firms. * Company has evolved gradually from Passive support of Management perception of union to active partnership with unions.. It gradually made a cautious move from not just maintaining a stable labour relations climate in order to avoid labour disputes, it has invited a voluntary participation of employees and union leaders in management activities. * Unions characteristics of providing weak employee support to being professional in their activities and finally Employee Relations have moved from just dealing with basic issues to providing autonomy and participation of employees From the above example it can be understood that Firstly, without management innovation, co-operative Employee Relations cannot be achieved.For Labour management relations to be a positive sum game, these innovations should enable the company to achieve superior performance and the capacity to provide employees with better rewards. Secondly, much time and effort is required from top management to develop a constructive labour management cult ure. The Employee relations department cannot achieve the development of co-operative employment relations by itself. The labour management relationship should be viewed as a profit – creating relationship, rather than a cost –creating one.Thirdly, the company should support increased independence and professionalism on the part of the union and provide education for union leaders. A union that lacks professionalism is unable to get a full support of its members and lacks effective management strategies for administering union business because of high turnover of union officials. Fourthly, to be successful all these activities should be conducted consistently and systematically over time. Many companies only seriously consider the labour management relationship when faced by a critical problem.Such focused attention tends to fade when the strike is settled. As explained in the above example, LG group has chosen a different path and spent a year analysing its Employee r elations. CONCLUSION IS PRIVATISATION A SOLUTION ? Currently both globally and in India, demand for coal is on the rise, thereby increasing the prices of coal. Due to the volatile times passing through, similar to other commodity sectors like Iron, steel, Coal Mining industry will also undergo divestment and monopoly of Coal India Limited will break. However privatisation is not a panacea for all issues lingering the sector.Time has come for Policy makers, bureaucracy and other parties involved come together to answer few critical questions while restructuring the sector. 1) How to deal with thousands of people making their livelihood from illegal mining of coal ? 2) Will the government able to accept few realities like people living in local region , have rights on mineral resources to strength the lower strata and provide a sense of security to their livelihood ? 3) Can the government, restructure the sector with more robust, full proof, social informed laws protecting and respect ing the rights and interests of all involved ? ) With experience from privatising other commodities, after privatising coal mining ,it can be estimated that mushrooming of small coal mining leases can be experienced in an open market scenario. Hence laws and policies safeguarding the interests should be more inclusive than before. Where policies and laws have to deliver sustainable benefits to local and global communities, unlike current laws that are focused only on mitigating the negative impacts of mining on the environment and marginalizing small groups over national priorities.Government policies need to take a more holistic approach in understanding about production of â€Å"Illegal mines† as well as marketing and distribution chains through which legally mined coal is illegally distributed. It is vital to integrate local interests in mine management plans to provide access to resources for local people and co-exist peacefully for inclusive growth.. References : Books a nd Internet Links * Bamber J, Park F, Lee C, Ross P and Broadbent K, 2000, Employment Relations in the ASIA-PACIFIC Changing Approaches, Allen and Unwin, Australia. BeardWell J ; Claydon T, 1994, Human Resouce Management – A Contemporary Approach, Pearson Education Limited, Great Britian. * LG Group ( 1994) LG Labour – Management Relations Long-term Model Report * http://www. thehindubusinessline. com/companies/article2470720. ece * http://economictimes. indiatimes. com/coal-india-ltd/infocompanyhistory/companyid-11822. cms * http://articles. economictimes. indiatimes. com/2011-10-18/news/30295579_1_iits-and-iims-new-recruits-cil * http://www. firstpost. com/business/labour-pangs-for-coal-india-scrip-melts-in-the-heat-67084. tml * http://in. reuters. com/article/2012/10/12/tci-coalindia-idINDEE89B08G20121012 * http://www. dnaindia. com/money/report_coal-india-to-face-india-s-first-class-action-suit-in-15-days_1770358 * http://www. livemint. com/Companies/jEkLsitce5Qt0w x3gyS3sM/Coal-India8217s-UK-shareholder-to-file-petition-in-Indian. html * http://ibnlive. in. com/news/meghalaya-braveheart-fights-against-child-labour-in-coal-mines/266778-3. html * http://www. amusingplanet. com/2011/05/child-labor-in-indian-coal-mines. html * http://www. elshcoalmines. co. uk/forum/read. php? 4,50329,50370#msg-50370 * http://www. mining. com/los-angeles-times-uncovers-child-labour-in-indias-coal-mines/ * http://articles. timesofindia. indiatimes. com/2012-11-14/guwahati/35111450_1_child-labourers-coal-mines-meghalaya-government * http://www. businessinsider. com/photos-indias-illegal-coal-mines-2012-10? op=1 * http://www. thesundayindian. com/en/story/the-unfortunate-social-costs-of-coalgate-and-such-scams/42442/ * http://papers. ssrn. com/sol3/papers. cfm? abstract_id=1716581 *

My dream car Essay Example | Topics and Well Written Essays - 500 words

My dream car - Essay Example What more or less could I think of? I started thinking about this car when I was in the high school. I came to know about BMW by its excessive advertising and media exposure. My personal likeness was accompanied by the fame and prestige this car acquired. It further motivated me towards the aim of attaining it one day. At that time, I was a student. I was so fond of that car that I used to search about it on internet so as to discover about it, to have knowledge about its features and functions. I have saved about 1000 pictures of BMW in my computer. My dream car is in the attractive red color which seems very beautiful to me. My dream was fully supported by my plans to fulfill it. I started accumulating money in the school summer vacations. I researched the price of BMW and started working hard to collect the required amount of money. The BMW was worth $8000. I worked at 2 different places in order to achieve my target. By the end of my vacations, I observed that I am still way behind what I aimed to achieve. I could accumulate $4000 only in the vacations. By the start of my schools, my hopes were all shattered and I moved on to buy a cheaper car. I asked for help from my mother and others by seeking their advice and financial support. It was apparent that no one could lend me this huge amount at that time when I was not even done with my studies and was not able to get a reputable job. I used to believe that nothing in this world is impossible. It is quite true in most of the cases but under the circumstances that I faced, I failed to change the impossible factor to possible. The conditions were not going in my favor and it was turning hard for me to buy my dream car. I bought myself a car that was not too expensive, luxurious nor prestigious but instead was very economical, spacious and not much

Ontology is the Best Principle that Explains the Existence of God Essay

Ontology is the Best Principle that Explains the Existence of God - Essay Example This means that God did not play a role in the creation of man, and hence His existence is doubtful. However, this paper argues that God exists. There are three major arguments that try to justify the existence of God. These arguments are, ontological, teleological, and cosmological (Peterson, William, Bruce and David, 93). Teleological arguments justify the existence of God by looking at the physical and the natural world. It denotes that it is impossible for the physical and the natural order to exists, without a supreme being, who was responsible for creating it. The cosmological argument, on the other hand, denotes that the existence of God is deduced. The proponents of this argument are not sure, and this is because it is a deduction. The ontological argument, explains the existence of God, through the principles of ontology. Ontology is concerned with the issues regarding the ones that exist, how such entities exist. This paper argues that ontology is the best concept that can be used for purposes of explaining the existence of God (Peterson, William, Bruce and David, 95). However, there are arguments, that ontology cannot efficiently explain the existence of God, mainly because it is based on the perception that God exists, and this is because of its nature. This paper takes a stand, that because of the nature of God, that is, His creation capability, it is proof that He exists. This is the major principle of ontology. St Anselm, who was a medieval Christian, is the first person to come up with the concepts of the ontology. He developed this concept, based on words, and what these words were able to mean. St. Anselm denotes that it is possible to prove the existence of God, by trying to find out, what this word, God, means (Peterson, William, Bruce and David, 91). St Anselm further explains that the word God contains virtually everything that an individual needs to understand concerning the existence of God.  Ã‚  

Case study on driving Research Paper Example | Topics and Well Written Essays - 1500 words

Case study on driving - Research Paper Example 12). The research design addressed the research inquiries and depicted its approach with level-headedness in that John erecting the sign might definitely be a criminal offense since he has not done any research on the topic, and at the same time, the action may be a risk to other drivers (World Touring and Automobile Organization, 1953 p.25). John should also get permission from the necessary authorities to erect or not erect because there are rules that govern erecting signs. The apposite methodological literature includes relevant legislation, cases, as well as journal articles (Great Britain, Northern Ireland, Scotland & Wales, 2006 p. 24). The research context offered justification of the research setting with background data, which included the fact that many accidents have taken place within the vicinity of schools because of the erection of so many signs, insufficient space amid signs, as well as no provision of a lucid view for other road users (Hands, 2002 p14). All these ac tions have led to the impeding of other signs, which does not give the road user enough time to make necessary decisions, as well as securely implement any required maneuver (Organisation de coope?ration et de de?veloppement e?conomiques, 2004 p. 13). The research sample utilized was purposive sampling to select the target populace because the researcher was only interested in individuals who were concerned if John would put up the sign or not. Five road users, two teachers and administrator from the school, as well as two heads of the traffic control department (Macken, 2011 p.67). The sample size was arrived at by utilizing a formula usually used to work out the model size needed for the study. The populace was utilized to compare and contrast their views and observations of the traffic situation around the school to find out if there are dangers that exist already or any that will exist when the sign is put up (Standards South Africa, 2004 p.37). The data sources included intervi ews and secondary data from relevant legislation, cases, as well as journal articles. Interviews were utilized to collect first hand data from individuals who were to be concerned if John had put up the sign or not. Data was collected after getting relevant permission from the authorities, at the school, roadway, as well as the traffic signs department (European Conference of Ministers of Transport, 2000 p.14). After the data was collected, it was examined, edited, coded, as well as analyzed. Relevant software such as MS Word and MS Excel were employed to sort through data gathered via interviews to make out patterns, as well as establish relationships. Validity was ensured by instituting a coherent connection amid the study objectives and interview questions. The researcher will guarantee obscurity by respondents, as well as all data will be treated with discretion and will just be utilized for meeting the purpose of the study (Automobile Association, 2009 p.87). Advice addressing John’s Concerns In regard to the concern of John erecting the sign warning drivers of the dangers of parking so close to the school gates might constitute a criminal offence, John should do extensive research and find out what makes up criminal offence and what does not, from relevant legislation, cases, as well as journal articles (Aa Publishing, 2010 p.189). For example, State law needs the traffic control department to take on standardized principles for traffic control tools, counting signs, along public roadways. WAC 468-95 takes on the

Marketing Communication Research Paper Example | Topics and Well Written Essays - 1500 words

Marketing Communication - Research Paper Example The researcher states that some of the main benefits of an effective marketing campaign include market penetration, increased market share, increased market share, increased competitive advantage, and increased awareness among customers about the products of the company. However, in every marketing campaign, managers need to focus on finding an appropriate marketing mix in order to make the campaign successful and profitable for the company. In this, we will discuss the importance of the role of the marketing mix components in the success of businesses operating in today’s competitive business environment. Implementation of an effective marketing communication plan and taking steps to monitor the actual performance of the plan are of significant value for any company to succeed in a competitive business environment. In order to successfully monitor and control the working of the marketing communication plan, companies use the marketing mix as one of the main marketing tools. A s Belohlavek states, â€Å"The objective of a marketing mix is to establish the successive and simultaneous actions to influence the consumer’s or user’s purchasing decision†. Finding the right marketing mix holds the central value for the success of any marketing campaign. Marketing mix helps managers in determining the best way to market their products and services. As Varey states, â€Å"The marketing mix is seen as a collection of tools to be used to elicit desired responses from target markets†. It helps a company in finding the target market, as well as in determining the price of the product by considering various external business factors, such as the price being offered by competitors, similar products being offered by competitors, and buying the power of people living in any specific geographical location. Proper analysis or evaluation of all components of the marketing mix, which include price, place, product, and promotion, plays a key role in making the marketing plan successful for the company. As McDaniel and Gates state, â€Å"The mix is the unique blend of product, price, promotion, and place (distribution) designed to reach a specific group of consumers† (3). Companies usually develop their marketing strategies depending on the needs of the public and the market in which the product is to be placed. In highly competing firms, such as cell phone and automobile companies, the strategy regarding use of the marketing mix components does not remain the same forever. Managers of such companies review and change the nature of their marketing strategies continuously depending on internal and external business environments. For high profile brands, companies usually focus more on the promotion component of the marketing mix instead of price. Similarly, for a product which is to be placed in a market where there is a lot of competition, the company focuses more on price instead of promotion because customers like to b uy products of such companies that offer superior quality at a relatively low cost. Managers of high profile companies also analyze their marketing mix frequently in accordance with the level of customer acceptability regarding their product in order to make the required changes in the marketing strategies if needed.