Business

The attractiveness of foreign market has driven many companies to expand their presences. The so-called globalization has encouraged the increasing number of corporations that expand their services into adjacent countries or those in other continents. The plethoras of multinational companies, especially those who succeed managing their operation in foreign market, suggest that they successfully adopt suitable strategy to win the market.

Multinational corporations like Coca Cola, Unilever, and IBM that already expand into foreign market for years understand how to deal with foreign market by delivering suitable services and products that foreign customers would respond positively, which means there are some degree of customization to fit the local market characteristics.

Another way to grow a business is to take over distribution and begin to invest in its own marketing organization in the foreign market. Once this organization is in place, the range of products and services expands rapidly, often including new offers developed specifically for the local market. In this stage, the emphasis on local market development results in a marketing focus not unlike that in the domestic market (Arnold, 2004).

However, there are challenges for corporations when expanding into foreign market, especially those involve manufacturing the challenges are the supplies of raw materials to keep the costs low.
This situation emerges in the case of IKEA, a well-known Swedish furniture retailer that expand into foreign market quickly especially since 1990s. Since the company faces the increase of administrative costs and bulky internal planning system, IKEA need to develop system that favors the international growth.

Concerning the business analysis of multinational companies, this paper will discuss the way that IKEA International, a Swedish company that focus on selling home furnishing products and house wares throughout the world, in strengthening their position in home furnishing industry. Several issues that this paper will over are PEST analysis, Porters Five Forces, and critical success factors, to name a few.

Strategic Analysis of IKEA
PEST Analysis
Political
    Concerning political forces, IKEA must consider the country risks when planning to expand into new markets. According to Eun and Resnick (2004, p. 370), country risks refers to a measure of credit risk, political risk, and other economic indicators. Usually, when companies expanding into foreign countries, the decision mainly based on economical issues, but political factor may be damaging to the continuity of a business if it is not well-prepared in advances.

    In assessing the country risks, there are many approached such as one developed by A.M. Best Company, Inc. (2006) that put countries in groups based on the Economic, Political and Financial System Risk factors. The groupings called country risk tier 1 to 5 (CRT-1 to CRT-5) where countries in the Tier 1 (CRT-1) is considered to have a stable environment with the few amount of risk meanwhile those in CRT-5 have greater risks in the three factors. For instances, United States as one country where IKEA invest is in the CRT-1 in which the three factors are in very low measurement. Meanwhile, if the company wants to expand into developing countries like those in Asian, the country risk level may be in CRT-3 to CRT-5 except Singapore (CRT-1) where IKEA already exists.

Economical
The assessment of economical factors basically has been included in the country risk analysis based on A.M. Best Company, Inc. considerations. In terms of economical factors, the company had better to look at the prospect of the targeted country. Some economical factors that can be taken into account are as following
GDP in which the world GDP sometimes is much larger than domestic markets
Growth rates. Some countries experience high growth rates that become attractive markets for IKEA to expand.
Competitive advantages. Some markets have competitive advantages (available resources, encouraging business policy etc)  that provide benefits for IKEA (Abell, 1991)

The countries that IKEA exists also varies in country risk, for example, the expansion in U.S, Germany, Australia, Canada, Singapore will run smoothly in terms of country risk the challenges is to match the local market needs however, expansion into countries like Russia, United Arab Emirates, to name a few, may have additional challenge to deal with financial system in those countries that considered to have high risk figure.

Socio-Cultural
    This element also affects IKEA in the way that the company needs to address market diversity. For example, in developing products, IKEA conduct market research in order to adopt market diversity. The case of market approach failure in the early stage of entering U.S market is because the company lacks of considering local characteristics. The way IKEA visit local employee to find the demand of American customers in furnishing their home become one approach to develop products that match customers needs.
Technological
Technology in furniture industry also plays important role since the use of materials and the process to develop a product influences the quality of product. The company products come from over hundreds supplier all over the world, especially from low-cost countries. This condition suggests that IKEA need quality information technology to connect to these suppliers so that it can ensure the availability of key components of products.

Porters Five Forces
Porters Five Forces are a business analysis tool that develops to help companies assess the environmental forces that influence a company. This business analysis tool works by dividing environmental forces into five different categories (Figure 1).
The main feature of Porter Five Forces is to develop five influential factors towards companies performance. It also provides a systematic way of thinking about how competitive forces work at industry level and how they determine profitability.


Rivalry
Rivalry exhibits the intensity of competition in a particular market. IKEA strategy to provide low-price but high quality furniture implies that the company will enter intense competition from mid-to-high furniture companies as well as the low ones. In the U.S. alone, Ikea faces competitions from Target Corp. that found to recruit top designer, Thomas OBrien to design quality but low-priced furniture product. Another competitor is Kmart, which appear to cooperate with Martha Stewart to provide the furnishing line.

Threat of Substitutes
Substitute products are products of other industries that may have significant impact to the prices decision and other features of furnishing products. Ikea faces substitute product from high quality wood products. Unlike Ikea that relies on the particle board as the main material in the furnishing line, in some markets like Japan, the demand for high quality of wood is preferable.

Buyer Power
Buyer power has significant impact on the producing industry. The buyer power is perceived to be strong enough if they are in the minority in numbers and there are numerous producers or furnishing manufactures. The various products from Ikea that has advantages of high quality and low-price become one particular features in which buyer has less options since in some developed countries usually the furnishing companies are priced high.

Supplier Power
Supplier power is typically low within the specialized furnishing-manufacturing industry because furnishing companies have various amounts of different components and there are a large number of suppliers available to cater for this. The supplier power is low in case of Ikea since there are less worldwide furnishing retailers that would accept their low-cost products in global markets.

Barriers to Entry
Barriers to entry represent the complexity for a new entrant to enter the industry. Threat of new entrants in the specialized low-priced furnishing industry is relatively low as the manufacturers would need large amounts of capital to start up, build a factory and showroom, and to purchase technology to speed up the manufacturing line production, which required starting producing the specialty design and production. In one case, Ikea require as much as 60 million to establish a retail shop. This huge capital would be the barriers for start ups that do not have the strong capital back up.

Critical success factor on IKEA
Corporate Culture
The success formula of Ikea lies on their philosophy of providing affordable products that consumers want to pay and figure out a way to build it. This low-price strategy continues evolving as the company becomes multi billion company today (Greta Guest Detroit Free Press, 2006).
In other literature, it is said that this low-price strategy underlies IKEAs business model to provide customers with better, simpler and less expensive furnishings. This business model created the operations strategy the focuses on price leadership strategies where all activities must be performed at the lowest possible price. Production and distribution activities are performed based on cost-saving visions. The products are designed to be simple, recyclable and using as few corporate resources as possible.

Marketing
Another success factor is Ikeas distribution that simplifies the path from suppliers to customers as cost-effective and environmentally adapted as possible. The so-called flatpacks ensures that Ikea is no transporting air by selling and delivering furnishings in their unassembled form and letting consumer assemble the products themselves. This helps keep costs down.
In addition, what customers wait from Ikea is their regular catalogues that already become their most important marketing channel and also uses the internet as a marketing tool.

Bowmans strategy clock
Bowman strategy clock is developed to convey the competitive advantage in relation to cost advantage or differentiation advantage. In this strategy clock, there are six core strategic options as shown in the figure 2.


    In case of Ikea, the positioning of Ikea lies in the Hybrid option where the company presents the low-price strategy with some differentiation in order to stand out the furnishing markets.

Assess the extent to which the resources view and industry conduct performances
The company lives in a global industry of furniture manufacturers. Nevertheless, the organization has a business model which is considerable different than other furniture manufacturers. The company sell low cost-utilitarian furniture most of which designed to be assembled by consumers themselves. Applying this innovative business model, Ikea becomes the pioneer of a new sustainable development approach to the global furniture industry (Our Vision, 2007).

Recommendation
The key characteristics of Ikea are not manufacturing the products by themselves in fact they cooperate with sub contractors from all over the world to supply their stores. In order to keep growing in global market, there are several recommendations
Brand and design could be made the same in all markets since the brand of Ikea has already become multi billion brand
The size and accessories could be customized to match the local market since each single country has different characteristics and preferences
Moreover, the company can establish particular division that is responsible of managing distribution system in order to simplify supply chain management that ensure the smooth processes since raw materials delivered by suppliers until it reaches customers.

Porters Value Change
The Value Chain is a concept delivered to the world by Michael Porter, in his book Competitive Advantage Creating and Sustaining Superior Performance. According to the Value Chain concept, the process of assembling value within a product can be identified through every stage of activity from receiving raw material until the product is in the hands of consumer.

By identifying the value generation activities, companies can design their systems to deliver the ultimate value to their consumers. According to the value chain concept, a process can be divided into 5 important activities Inbound Logistics, Operations, Outbound Logistics, Marketing  Sales and Service. A company might have strong and weak points regarding the way they manage themselves within each of this processes (The Value Chain, 2005).

No.Components of Value ChainImprovement PlansResource AllocationCostBenefits1Inbound LogisticsImprove cost efficiencies and resolve the matter of low-price furnishing suppliesWarehouse, procurement activities, suppliers partnershipIncreased efficiencies if Ikea can match the market needs and inventory plan (reduce the use of warehouse)2OperationsRebuild company images that known as low-price retailerPR (Public Relation) departmentIncreased satisfaction while maintaining good reputation3Outbound LogisticsCaterpillar logistic department ensures that Caterpillars products are available in the places it is requiredWarehouse, shippingSales targets are achieved satisfactorily4Marketing and Salesmaintaining high quality and receiving considerable incomeSales force, promotion materialIncrease the awareness of the superiority of Ikeas products 5ServicesProvide financial services that help customers solve their limited budgetPartnership with financial companySolve the matters of payment method such as installment program etc.

In my assessment of the terms of engagement with concentration on chapter four of the book, I intend to explain the detailed meaning of the word Terms of Endearment, the key parties it involves and the level of development that the concept has penetrated into the lives of people. The role of Non Governmental organizations and the corporate world in relation to the Terms of Endearment has also been addressed. Additionally, the various contributions of the terms of engagement and the possible development of the concept of terms of endearment among NGO, businesses and the need for sustainable development will also be assessment. towards the end, I also offer personal views that regards the best manner in which consumers and common citizens would benefit should the target groups fully embrace the concepts championed in the book of doing what is having good business practices that benefits the consumers rather than fully concentrating on maximization of profits and achieving the self interests the shareholders.

The assessment is vital since it would explore all the existing gaps that have not been filled and the possible ways in which all the stakeholders and shareholders in various organizations can participate in ensuring that the issues and goals targeted in this book are achieved. It will also help in getting the support of all relevant organs within and outside the business and NGOs arena to active participate in its successful implementation in various sectors the world over. The above will be achieved through the study of chapter fourteen of the Terms of Endearment book and other supportive sources of information that relate to the topic.

Review of the Main Content
This research paper explains in detail the relevant issues related to the terms of endearment which aims to assist in laying the groundwork for Businesses and Non Governmental Organizations. Most businesses and Non Governmental Organizations have previously gotten entangled in perpetual wars of ideologies and values. The trend has however been changing and hence many companies are now engaging with their stakeholders. This has been happening even among businesses and Non Governmental Organizations which they have traditionally had antagonistic relationships. This is in a strategy for improved social and environmental performance. Various groups have so far contributed towards this success. The chapter of my concern in the book brings out the notion of how organizations of civil society have set standards for business behavior in the twenty first century. According to Cox, Shams, Erickson Hicks (2002, pp 1-8), certain levels of confrontation with among businesses and Non Governmental Organizations should be expected in order to achieve high standards of social and environmental performance.

The findings of my research depict various existing controversies among NGOs, businesses and the possible sustainable development. The three ways of conceptualizing the growing controversies of partnership between Non Governmental Organizations and businesses portrays various challenges which need to be addressed. Moreover, this corporation has continued to divert the intended purpose of NGOs which should be of longer time horizons and of greater value orientation. In this chapter, the fact that various intentions of a dialogue need to be set prior to the beginning of a task is explained. There are a number of intentions that are targeted by dialogues that takes place among people (Manheim 2003). The dialogue intentions include manipulation, therapy, information, consultation, placation, partnership, delegation and enhancement of democracy.

Areas Where Terms of Endearment Makes a Contribution
Terms of endearment have made great contribution in the development and growth of the financial sector. Various stakeholders such as brokers, insurance companies, hedge funds and funds managers have contributed to the development of terms of endearment. Currently, the levels environmental concerns are high and increasing worldwide. The gap between awareness and the actions taken is still wide. Most leading companies are seeking to enlist their consumers in the change process hence the increasing numbers of consumers who are ever feeling guilty about their practices. Even consumption is so complex that more integrated solutions and drivers are required to address public and commercial risks of unsustainable consumption. Additionally, various contributions have been seen within the yielded good results. The level of carbon being emitted into the environment has drastically reduced. The carbon reduction, waste, water, paper use management are all efforts put in place to ensure the existence of a friendly environment and good working conditions for businesses. Targets being met and exceeded for some energy management, handset recycling, strong approach to child safety and efforts to place masts, codes of conduct, community consultation and engagement have been done (Manheim 2003)

Under the Democratic accountability, organizations which have a lot of unaccountable decision making-making power and is exercising it for its own ends then it should be more accountable to those being affected (Mother 1989). This is important in ensuring that the people who are affected by the decisions made to not feel oppressed and that they should view the activities of the company as having a greater end that is above the self interest of the company which may be to maximize profits and to fully benefit the shareholders. Business should be endeared to the needs of the consumers and the values and ethos of the society for a number of reasons. There has been a growing importance of civil society to business in a globalization economy. There are a number of reasons that would make individual companies to seek constructive relations with NGOs. Steve Waddell (2006) argues that nongovernmental organizations are able to do things that business corporations cannot. This is the reason why they make attractive partners for business. By joining forces the partnering organizations combine their resources and strength, and offer their weaknesses.

Terms of endearment has also been used in provision of services that would otherwise be very complex and costly to provide without any collaboration between various businesses. In most circumstances, NGOs decide to collaborate with various businesses in order to enjoy some of the already laid down infrastructure and network in certain areas of business (Samuel 1909 Shirley 1981). The high costs of running businesses also trigger the need for sharing of the initial costs between NGOs and various business enterprises. This helps in the overall streamlining of the business practices and ensures that consumers receive certain services and goods at an affordable cost and in the most efficient and cost effective way possible.

Evaluation of the Contributions
The major contribution arising have ensured that companies become very environmentally friendly in an attempt to benefit the consumers. Consumer participation and willingness to support the firms contribute to the betterment of the manner in which firms positively contribute to the environment in which they coexist. Corporate accountability has continued to improve due to the continued acceptance of the fact that most NGOs, businesses and other sustainable developments being initiated continues to understand the need to have various terms of endearment. The improvement is partly attributed to the continuing growth in size of corporations and their ability to choose where locate, influence government policies and escape jurisdiction where possible (Steve 2006 Camp 1989). Non-governmental organizations have even become a greater concern due to the fact that some of their activities are not easy to monitor and that they enjoy better relationship with most individuals hence the great influence they may have on the lives of the majority of people. Responsible business and sustainable enterprise is often driven by and depends on the firms stakeholders. Therefore a comprehensive understanding of processes of a firms stakeholder relations and how these can be managed for mutual advantage is important.

Non Governmental Organizations provide a methodology for linking the production and economically oriented world of trade with the social aspect of generating value to the society. This normally translates into providing linkages to low-income people and interest groups that the comparatively wealthy, expensive, and elite world of business has difficulty connecting with and understanding. However, the key terms of endearment are normally targeted at attaining a clear understanding of the areas where real power is and the major drivers of businesses, Non Governmental Organizations and the overall political process (Terje 2003). At times this kind of analysis is partially untrue. Indeed Gramscian has three sections that describe a society. These include the actual market, government sector and the civil society which is normally a simplified version with a considerably limited scope.

Relations between the Non Governmental Organizations and business enterprises varies from the very strong and antagonistic to the considerably collaborative, yet, according to David Kortens prediction ten years ago, may be viewed as a newer generation of the emerging Non Governmental Organization. The new generation of NGOs targets to build a relatively decentralize and independent initiative that targets to support a vision that is socially oriented. Part of this strategy is building links between different NGOs and addressing the more structural issues at the heart of social and environmental problems. Whereas third generation NGOs seek changes in specific policies and institutions, the fourth generation are bringing together loosely defined networks of people and organizations along national boundaries in South and North in order to change the institutions of world society. The pressure act in such ways is as a result of the natural way in which the world is lopsided. This revolves around trade, businesses and trade which have whizzed ahead while governance and accountability have fallen way behind.

NGOs have considerable resources for the task ahead. All over the world, their turnover is thought to be more than one trillion dollars. By some estimates, they provide more aid than the World Bank and employ more than 19 million people. New information and communication technology also provide many Non Governmental Organizations with greater knowledge, voice and power. Even though the majority of the worlds powerless and poor people do not have access to reliable and timely information, there has been a continuous growth in the number of Non Governmental Organizations that aims to ensure that this is achieved. The circulation of information all around the globe at the times of the political uprisings and the subsequent disappearances and murders of key campaigners added political weight to such matters. The core reason for working with Non Governmental Organizations can be understood in terms of managements building of intellectual, social and reputational capital, as well as efforts to reduce risks posed to this value creation. There are various benefits to the intellectual capital of a corporation. The skills, expertise and ideas of staff are vital to the success of companies, especially those involved in knowledge-based industries. There is need for a company to build reputational capital. The intellectual, social and reputational capital can be built up over years but lost within a very short time. Another reason for working with Non Governmental Organizations is to help in mitigating the risk that occurs. Some of the risks that may be suffered include boycotts, protests, resignations of employees, very awkward shareholders, terrible and very negative media coverage or even negative knee-jerk reactions from corporate customers and legislators which may constitute the overall fallout from a business operation.

Several theories of social benefit relate to the complementary resources. The sociology theory of social benefit allows for dialogic processes to construct value positions. Communication rationality is this considered. In political science, pluralizing those engaged in decision making is vital. Participatory democracy is encouraged and this could be achieved through the use of shared or collaborative governance which in turn inspire public mindedness. Furthermore, the use of common knowledge by use of very peaceful social relations that totally avoids conflicts is used. Civil engineering, on the other hand entails participation of all individuals through active participation in accomplishing a given mission.

Developments of Terms of Development
The development in this sector need to be improved and more effort put in ensuring that more environmentally friendly development mechanism are put in place. The Non Governmental Organizations also need to ensure that their operations enhance participation of people within the environment. Latest technologies may be used to boost these efforts. All the stakeholders in business should fully understand the business context and business strategy and drivers. Gap analysis against international standards of Corporate Responsibility and a thorough stakeholder analysis of the people who have an interest in the way business is run should be carried out. And the need for research to gain insight on the issues that are of most interest to the stakeholders in relation to the company and its brand values need to be established.

Secondly, the subsequent years are likely to see the continuing focus of various businesses on the safe use of mobiles for most families, greener innovations in products development and services offered (Camp 1989,). The future is also likely to see smarter development of new mobile applications that have a positive social and environmental impact thus being easily acceptable to the consumers. In order to achieve the endearment goals, there is need to ensure that major social and environmental risks are fully addressed, the value of the company brand is understood and possible measures to monitor the endearment levels of the company activities to the customers and the environment put in place.

Previously, a lot of concentration has been put on the public sector and its influence to the people and the efforts it make towards endearing its activities to the people (Woo, Cooper, 1982 pp.106113). However subsequent years are likely to see the focus shift to other institutions considered as part of a new accountability agenda. There would soon be the need for companies to have an obligation and the utmost willingness to accept responsibility or to account for their actions and the impact the actions have to the lives of people and the general environment. The future is also likely to see various measures to increase the surveillance and regulation of NGOs put in place.

NGOs are providing a means for creating a link between the economic and the production oriented aspects of business with the general value generating and social aspects of business practices. At one level this normally translate into provision of linkages to the low income earners and other interest groups which are relatively expensive, wealthy, and yet comprises of the elite world of business practices that connect with various understandings of the business environment. At another level this means making business aware of issues not immediately involved in production, such as the environment, poverty, inequality and social justice (Chapter 14, p.205).

Non Governmental Organizations are also a source of constant new idea which if well taken into consideration would greatly benefit small business enterprises (Richard, Marie-Nolle 1998). Both business and NGO would however need to undergo profound organizational changes if the overall target benefits to their collaboration the terms of endearment have to be achieved.
The continued NGO-business collaborative partnership encourages corporate partnership and entrepreneurial innovations that address environmental problems and result in operational efficiencies, new technologies and marketable products. Aside from offering environmental, scientific and legal expertise, the terms of endearment also provide linkages to other societal stakeholders, referred to as strategic bridges, to support NGO and business partnership initiatives with belief that consumers would ultimately benefit from the organization.

The real goals that should lead a business to be endeared need to be set out clearly and targeted at benefiting consumers. The reason for working with NGOs can best be understood in terms of a managements building of intellectual, social and reputational capital. Risks posed to this value creation would also be minimized through this concept.

    This paper will basically provide a book review of a particular chapter and explain how the contributions by the book has had an effect and how does it leaves an impact to bring the NGOs, government and corporate world in line with the social uplift that we talk about. The name of the book is Terms of Endearment Business, NGOs and sustainable development. Chapter number five which is based on Complementary resources has been chosen for this book review in order to narrow down the scope of this paper.

    The paper will first give an overview of the entire book, what it actually talks about, what are the key issues that are discussed and then it will explain what it talks about in chapter number five. During the discussion of chapter number 5, the book will present analysis of how the book contributes to present new ideas and strategies with which NGOs can help out businesses to reap benefits as well as get a license to operate ethically keeping in mind the environmental issues and its Corporate Social Responsibility (Welford 2000)(Macintosh 1992).

    The paper will also talk about the developments that have been made in recent years regarding this fact and prove how far the author has been able to successfully impart his knowledge to the corporate and social world.

Book Overview
    This book basically talks about the how the business will be conducted or should be operated in the future keeping in mind the environmental and social issues that all of us are already aware of. The author emphasizes that the corporate world has to realize what is more important other then the profit making and profit maximizing goals that the businesses have. The book outlines the stakeholders that are involved in the key decisions which can either contribute positively to a society or that can destroy a society. As we experience globalization, the need of business evaluating the way they are currently conducting their operations is getting even more important. The directions and the line of thinking have to be revised because of the fact that the basic concept of globalization is that the whole world is now connected. It is not about one society or one nation any more. It is about the whole world as a global village. Businesses are crossing borders due to advancements in communication technology and the decreased barriers of entry into new markets, and thus, they must also realize how their responsibilities have also increased. It is not the business only which can play an important part in the development of the global society, but, a deadly or previously adverse combination of NGOs with a business can actually make this happen that both of these stakeholders maximize their own benefits while contributing to the development of the society at the same time (World Business Council For Sustainable Development 2003).

    The book also presents many examples regarding how both the Civil Society organizations or the NGOs and the business can join hands to make a difference for the whole society. Both of these stakeholders have their own expertise. A business is necessary for generating economic activity in a society and so is a civil authority or NGO whose purpose is to provide effective, productive, healthy and clean business practices for the society so that the society is kept safe from unethical ills. It emphasizes that if both the stakeholders join hands for the cause, then the society will end up earning a positive and increasing social and economic benefit at the end.

Introduction to Chapter 5
    Now this particular chapter starts off with an amazing example in which the author presents to entities of which one is a NGO and the other one is a huge business. The business is a multibillion dollar power utility company and the NGO is a Conservation Law Foundation. The author presents a perfect match for the society derived from the adverse goals or objectives of the two entities. According to the author, the goals of both the parties are totally different in their essence, but, when they are mixed together in light of the total net benefit it will cause the society, the two organizations prove to be a deadly combination. Both of these organizations, in a joint venture, placed a bid for the regions largest power utility facility. No matter how many multi billion dollars a company has, it is not easy for it to bid and account for all the legal requirements, formalities and laws to be followed by an organization single handedly. On the other hand, for a region that big, an NGO, no matter how big the size it may have, may not and must not have the expertise to actually make sure that all the dry electricity generation plants are shut down for the society to have a efficient power supply system in which resources are utilized in the most effective and productive manner while not causing any harm to the environment. Thus, it is proved that both the stakeholders have opposite motives and stakes in the project. However, when we look at the reason for a joint bid, we see that both of the organizations have made use of each others expertise in pursuit of their own goals and targets. The NGO make use of the businesss expertise in managing and operating the largest power supply facility, whereas, the NGO contributes its legal advice and efforts in shutting down the inefficient power supply and generation units in order to conserve the resources (Lawrence, Weber,  Post 2004).

    There are basically three stakeholders at the end. The Business, the government and the civil society which are responsible for the positive development of the whole social and environmental system. However, according to the author, when goals and perspectives of all the three are merged and joined together, many discrepancies and conflicts arise due to differences in perspectives and motives. Still, in recent trends, we see that the number of collaborations that we look today is increasing due to the fact that the net outcome for all these three stakeholders is eventually positive in the long-run. Neither of the three finds itself or its goals neglected. Most of the motives are met, the business gets to earn profit, the government agencies are happy that resources and laws are taken into consideration and the civil society representatives that are usually the NGOs are happy that the civil society is taken on board before all the strategic and critical decisions are made regarding a certain issue (Bendell 2004).

    Now, according to the author, getting it realized by the corporate giants to assume their own responsibility towards the society is not only difficult but it will also take a lot of time then usual to make them understand how then can take help from the civil and government authorities in order to do their own benefit along with the benefit of the society as well. Therefore, for the time being the author puts emphasis on the NGOs going out and convincing the corporate world and showing them what benefits they can reap. The author has based the discussion of the chapter in the corporate world that will actually be able o reap benefits and subsides the advantages that the NGOs can reap for the time being. In simple words, the book urges the NGOs to go and look from the eyes of the corporate and the business world and then tell them the story about benefits and success factors that they will not be able to achieve otherwise in absence of the NGO assistance or joint collaboration.

Risk Management and Reduction
    NGOs spend most of the time researching for newer and better ways in order to see what will be better for the society with minimum use of the resources. They look at things from different perspectives and different criterions are met before a research result is achieved. The result is totally based on environmental and legal laws and has a total net benefit for the society. Whereas, if we look at the business research methodology, we see that they are mostly concerned with profit maximization and revenue maximization. Yet, there is one critical factor that has to be inferred from the authors ideas. This one critical factor is the common idea behind the goals of both the entities. An NGO will be successful if it uses as much less environmental resources as possible, and, at the same time, a business will also be more profitable if it uses lesser inputs. Yet, through unethical means, if the business is able to reduce costs even lesser or if it is not using resource appropriately due to monopolistic conditions, then, the entire research and investment can fail if the legal authorities get hold of the business activities. Now, the concept of risk and cost reduction is both concerned with the businesss survival in this case. Thus, the solution is the incorporation and integration of the civil authorities in the research and development decision so that the business gets to use the research that the NGOs have done which are up to the mark of legal requirements and at the same time reduce costs as these researches and methodologies employ much lesser resources as it is actually the basic target and goal of the entire research (Welford 2000)(Macintosh 1992).

    Moreover, businesses spend a lot in educating public regarding their new product or service. For example, in developing countries, Proctor and Gamble used to run programs for the importance of cleanliness particularly regarding washing hands. The reason is the fact that the more the public knows the importance of a certain problem, the more it will be motivated to buy a product that serves as a remedy. Therefore, now, what Proctor and Gamble and many other companies such as Unilever have done is to come up with joint ventures with local NGOs who know how to aware people and on whom people trust blindly. These organizations also have their motives to address cleanliness issues in the general public and so it is the best chance for them as well to educate the public along with prescribing a remedy as well. Thus it is simple and clear what a joint venture between the two parties can mean for the overall benefit of the society. the NGO will make sure that people know how important it is while making sure at the same that the product and quality promised is delivered, while, the business will use the expertise of the NGO to educate consumers and generate revenues.

    Moreover, many businesses which are working with NGOs to add value to the social and civil life are given incentives such as non-tax status. Shell Pakistan currently has a program called Shell Taameer in which it lends out loans on very flexible and easy installments to those poor people who have a business idea and who want to become entrepreneurs but they do not have the funds. Now the NGOs help the company to bring up such deserving people and the company lends them money. The company is then able to save all the percentage of Tax that these new entrepreneurs pay to the government as it is actually helping them develop an economic activity (Van, Arts  Leroy 2000).

New Product Development
    Apart from cost reduction and risk management, an NGO can help a business decide what the community most urgently wants. From the business perspective, we see that a business looks at NGOs as the reasons for all the issues that come up and raise problems for the companies regarding their products and services that might be harming the environment or the society in some way. However, if we look at this optimistically like many companies have already done in these past few years, we see that the issues that these NGOs come up with can be one of the best sources to infer the consumer demand of products and services in the future. For example, many pharmaceutical companies have started joint ventures in research and development for new products basing their research on the information provided by these NGOs of how they plan the society in the near future and what problems will they be emphasizing upon. Thus, the businesses subsequently come up with compatible services and products that are aligned with the goals and targets of these NGOs and again the total net gain for the society is positive and incremental. Also, when developing a new product, NGOs can also guide these companies of what legal changes and policies are anticipated in the near future so that a short term perspective of cost reduction may not prove to be fatal for the new product of the company if the new regulations hold the product violating the legal and ethical requirements. In developing products especially in the developing world, NGOs seem to have more information than any other resource about the niche issues that the society is facing. When company designs a policy, it is an overall target market oriented policy, but, NGOs can help these companies to target specific niches in order to cater to needs of not only a few or narrow consumer base, but, to encompass as much as it is practically feasible and possible.

New market development
    One of the similar works that we have seen in light of the authors ideas is the book named Fortune lies at the bottom of the pyramid. Now this book talks about the trillion dollars market that is still untapped by big MNCs in the developed and under developed world because they dont have their products that satisfy the needs of this particular market. However, when we look at the case of India, where a large size of population is living under the poverty line, many MNCs are selling their products even to these customers as well in lesser quantities. The NGOs have brought them concept of Sachetization in which large bottles of shampoos are now transformed into small packets that may be used for one was only (Lawrence, Weber,  Post 2004). They are easy to store, easy to purchase, raise the hygiene level of the lower income class level and most importantly from the eyes of the business, more profits due to lesser quantity. This is how NGOs are able to open new markets for the businesses if both work hand in hand using each others strengths and overcoming weaknesses as well.

    Moreover, another example from the developing world can be taken from the government NGOs who have helped pharmaceutical companies producing contraceptive measures to curtail the growth rate of population in these companies. Both the NGOs and the business have been able to benefit from this joint effort. The NGOs know how to educate people, people trust them, and they know the critical areas and the low profile streets where as the business knows how to produce these measures and provide quality products that are in range of these low incomes class consumers.

Human Resource Development
    It is important here to understand that all the stake holders involved in the development of our society have to work with each other to get the desired results. They have to understand each others needs so that they can come up to each others expectation. Without applying the concepts of how to satisfy stakeholders, the whole program of joint ventures between the three cannot actually work. For example, going back to the example of contraceptive measures, we see that the NGOs know what the consumers want and the business knows how the product will perform. Thus, both of them have to educate and develop each others human resource and integrate them in the whole process. Unless the NGO representative knows what the contraceptive medicine will do and how it will work, why would anyone trust him Similarly, unless the product design team knows what sort of a product does a specific target needs, how will they be able to design a product for them and think while standing in the consumers shoes Therefore, developing each others human resource is the best way to come up with the synergy that is being discussed in this paper (Bendell 2004).

    Apart from all the major perspectives that we have talked about above, we see that one of the major problems that businesses face is the problem of competition. However, if we go back to the first example when an NGO and a Business joined hands for the largest power supply service, will it be correct to say that this joint venture will actually prove to be a barrier to entry for the competitors of the business Certainly yes. Same is the case with all other businesses. They might not be able to be the first in the market but, many businesses have strike the first in category strategy to cut market share and competition from their competitors to enjoy the sole service providers in the industry.

    Although we have talked about joint ventures and collaborations between the three stakeholders, but, it is important to keep in mind that this does not clearly means that the trends of mergers and acquisitions come up the stage. Either in the part of the business or the NGO, this scenario will be really hurtful for the society at large. One of the reasons is the fact that there will be a huge loss in the expertise that each entity has and secondly, the essence of operations will be lost from one of the parties if the other one takes it over. For example, if a business takes over an NGO, then will it not be focusing on profit maximization again rather than equally thinking for the society and the business at the same time. The answer is simple and obvious.

    Marketing is a social and managerial process through which individuals obtain goods and services through an exchange method.  This integrated process enables companies to create strong customer relationships and brand loyalty. Owing to the fact that marketing is done to maintain customers and to satisfy customer needs, marketing management is one of the most important aspects of business management. According to the marketing concept, achieving organisational goals depends on a sound understanding of the target markets and to achieve customer satisfaction. What lies at the heart of marketing is a good understanding of the customer and their needs, this requires that the organization understands both the internal and the external factors and the concepts of brand building and brand equity.

Part (a)
    As a salesperson, I have come into contact with marketing while promoting the goods I have sold before. This aspect contains two important sub-categories that are communications which include advertising and public relations and personal selling. Communications involve the process of getting customers to buy goods while personal selling includes the techniques used in selling. Good relations and patience are some of the most important features customers often need a salesperson who is patient with them even when they pester. I have always had to be honest with the brands I sell for the sake of trust and brand loyalty consumers need to be confidence in the product in order to be devoted to it. Confidence is another area that is of great challenge, I often risk losing a deal just because of lack of confidence, this by extension means that a consumer will not be convinced to purchase the commodity. Overall, I have realized that reliability, trust, confidence and honesty are key requirements if consumers are to be loyal to a particular brand.

Part (b)
Market segmentation, targeting and positioning- study session one.
    Market segmentation is the process of grouping the consumers in relation to their requirements or behaviour this is in consideration of the fact that these groups may have different and exceptional needs and these calls for different marketing programs and product provision. The rationale behind this concept lies in the fact that consumers may not necessarily have the same product desires while in the same stride, it is important to satisfy the needs of all consumers. This process apart from increasing the marketing communication needs also increases returns, retains costumers and ensures sound segment leadership (Greg 2000).

    As a salesperson therefore, market segmentation, targeting and positioning is very instrumental in determining the size of the homogenous segment, the reality of accessing the clients in the quest to satisfy consumer requirements. Substantiability and congruence are other factors of fundamental importance if at all value is to be delivered to the consumer, the segment should be manageable, cost effective to deliver services to and this guarantees that there is a good return to investment. In promotion also, the demographic, geographic, behavioural and the psychographic factors also need to be considered. To sell effectively, a salesperson must divide the potential consumers in terms of the density of population and geographical units (Drummond 2005). Psychographic characteristics are the consumer division in terms of their lifestyles, social classes and personalities.

The rational Approach of understanding customers- study session three.
    Consumer buying behaviour explains the manner in which consumers (both individuals and households) behave towards the products or services offered. A thorough understanding of consumer behaviour is essential in order for an organization to internalise the influencing factors of the consumer decision making process. In understanding consumer behaviour, the rational concept supposes that consumers make rational decisions about the products they consume. Marketers should therefore concentrate on understanding the consumer product evaluation process so that costumer satisfaction is guaranteed. The complex buying behaviour for instance emphasizes that consumers consider the differences between brands, develop perceptions before deciding which brand to be loyal to.

    As a marketer, marketing communication ought to be geared towards a particular strategic role, consumer behaviour could emanate from the marketing initiatives and effective communication of the salesperson. Consumer behaviour such as Dissonance Buying Behaviour often can be influenced by consistent providence of the services offered by the marketer, this could be financial services or after sale services. Marketers can influence habitual behaviour of consumers by using price fluctuations and effective promotion of such products, in the same stride, variety seeking consumers can be offered with a wide selection of products to choose from. Overall, marketers ought to have a comprehensive understanding of consumer behaviour in order to satisfy their product requirements (Schiffman 2004).

The Internal and Macro-environment- study session 2.
    The marketing environment entails a combination of factors that influence the ability of the business to expand and particularly affect effective building of customer relationships. The proactive approach is where there is a belief that the environment can be influenced by combating challenges while taking advantage of opportunities, the passive approach however views the environment as unmanageable. The Macro-environment consists of foreign competition, exchange rates, culture, interest rates while the Micro-environment comprises competitors, intermediaries, customers and suppliers.

     In the analysis of the above situation, a salesperson ought to be aware of the environment in order to be aware of competition, opportunities and threats. This instils an aspect of aggression in the marketer (the proactive approach) to strive towards covering a wider marker, strategize and plan on the marketing process (Greg 2000). In this age of technology and easy access to information, organizations can not exclusively rely on unique products because they can easily be imitated brands on the other hand are distinctive and help organizations maintain a competitive advantage.

Part (c)
    Analyzing the above scenario (marketing), the ethical implications may lie in the case where the wrong market is targeted in the segmentation and positioning process. Entangled in the whole setting, ethical issues such as honesty and integrity may not be considered hence taking advantage of the vulnerable population. Marketing ethics these are the acceptable guidelines stipulated by stakeholders that should be observed by the salesperson. A marketer owes a consumer a duty of care which should not be beached, there are also rights of the consumer and the obligations of the marketer, and this is where integrity and honesty of the salesperson comes in handy (Drummond 2005). Marketers since are the representatives of the Organizations should portray a positive image of the firm and as such, should not take advantage of consumer ignorance. This especially applies to those groups (older generation or children) who can not evaluate products rationally.

Part (d)
    The importance of segmentation in the marketing process is glaringly clear to concentrate on the important aspects and requirements of the consumer. Marketing practitioners can improve on market segmentation by studying the consumer type in terms of the organization size and type, the industry and the position in the value chain. Geographic segmentation should be based on the consumer concentration, growth rate of the consumer population and international macroeconomic factors. Once the markets are segmented, they can be given names and profiled in order to identify the potentials of the markets, attractive markets are then singled out and concentrated on. Overall, research should be undertaken by organizations to ensure expenditure is cut down, cash flow increases, productivity is increased, better knowledge of products is achieved and the working conditions of the salesperson improved.

The way modern businesses run is vastly different from the way they were run in the past. These changes in the way organizations need to be managed have been comparatively recent. The competitive pressures on an organization have risen steadily in recent times demanding leaders who are skilled securing continuous and sustainable improvements in productivity, customer service, response time, cost reduction, intellectual capital and quality (Fazzari and Mosca, 2009). The challenges in the modern workplace are many and varied. Competitive rivalries have gone global, customers demand better overall satisfaction and a typical office has people from all kinds of diverse backgrounds. In face of these newer challenges, the older style of management no longer gives optimum results. In this situation, High Performance Work System (HPWS) offers a way to get better employee participation and thus improve efficiencies.

The Problem
In the present case, the organization is losing market share because of lack of cooperation and understanding between various departments of the organization. This lack of cooperation is, in fact, just a symptom of a much bigger problem. Each of the departments is working in isolation with little communication with the other departments. This is because the company has a task oriented culture instead of a goal oriented one. The employees are only looking to complete their respective tasks and get paid for it. They do not have an eye on the overall mission of the organization. The supervisors of the respective departments are driven only to meet their respective targets. For example, the sales department may have certain annual targets which they must meet. The employees in the department get incentives for meeting or exceeding these targets. However, these employees do not have incentive to talk to other people in the organization, even within their own department. With their eyes firmly set on meeting their targets, they probably devote all their time and attention to reaching these targets. Each of the employees would have their own idea of how to achieve these targets. These ideas are based on years of experience and on the belief that what has worked in the past will continue to work in future. Similarly, the sales department on the whole also has its own belief of what constitutes success. It is possible that the department is consistently meeting its sales target and yet losing market share because the sales targets have not been revised in years. In this scenario, even if the department was informed that the company is losing its market share, it would only result in the department revising its sales target. As the organization continued to lose market share, the department and employees would argue that they are meeting their sales target, even after revising them, and the problem lies elsewhere in the company. The senior management of the organization, noting that the sales figures are indeed meeting the targets, would start to look elsewhere for the problem. This would result in further isolation of the sales department and they would continue with their negative sales practices.

This example shows that even though the employees and department are not lacking in their commitment, their efforts are unable to boost the market share of the organization. This is mainly because of lack of communication between the department and the rest of the organization. The department focus is on reaching the departmental targets rather than achieving organizational goals. When they are repeatedly asked by the management to increase the sales, it can even result in hostility with employees contending that they are doing everything they can and the problem lies elsewhere. This passing around the buck will not solve any problems and only encourage the various departments to continue to operate in this negative manner.

Also, the lack of training on the newer methods of sale and the recent products also causes problems. The employees are probably using the same sales methodology they have been using for years. Newer employees are quickly trained in these sales methods and then given their sales targets. Neither the employees not the department makes any effort to explore the newer methods sales and find better and faster ways to reach the consumers. Nor is their any effort to link sales with other departments in the organization. A lot of problems which plague the sales department can be easily solved by training the employees in newer methods of sales.

Finally, the incentive system in the department is very uni-dimensional. The system rewards the employees only for reaching or exceeding their sales target. The employees do not even try to rise above meeting these basic sales target because any other behavior is not rewarded. Any employee who tries to suggest something new is probably told to concentrate on his or her work rather than try and play management. These negative attitudes make it very difficult for the employees and the department as a whole to achieve targets and can even erode motivational levels of the employees.
This example concentrates on just one department of the organization. However, similar problems probably exist throughout the organization resulting in the organization losing out on market share. If the organization hopes to reverse this trend, it will have to bring about some sweeping changes in it HR practices. One way of doing this is to implement High Performance Work System.

Implementing High Performance Work System
Employees are the most important resource that an organization has. And for employees to provide sustained competitive advantage, they must be rare, valuable, inimitable and difficult to replace (Martin-Tapia et al, 2009). Unfortunately, high levels of these workforce characteristics are comparatively rare. Hence the human resource department must invest in practices such as performance management, rewards, training, participation and communication mechanism (Martin-Tapia et al, 2009) because they enhance a firms capacity for innovation, adaptability and productivity. All of these are extremely important in the present case because the organization is suffering as a direct result of lack of innovation and inability to adapt with the changing times.
High Performance Work System is the name given to the organizational practice that encourages employee participation in the running of the organization. To facilitate this, the organization must actively train its employees in the latest skills and technology and reward them suitably. High Performance Work System is a way to improve the efficiency of the employees by providing them with a sense of ownership. HPWS aims to improve organizational practices by maximizing employee knowledge, skill, commitment and flexibility. In order to be successful, the top management must be totally and completely committed to implementing the system. It is also important to implement all the components of HPWS. Part implementation of HPWS may not have the desired impact and may misfire. Since HPWS aims to improve efficiency by improving collaboration between teams and promoting creative thinking, the system, if implemented properly, may help solve the problem at hand.

Let us first understand the various aspects of HPWS. HPWS has three main components (Brown, 2006). The first component is giving employees an opportunity to increase participation in day to day decision making. This is a very important aspect of HPWS since it gives the employees an opportunity to affect their immediate environment. Having more say in how things are run also helps in bringing a sense of ownership among the employees. This motivates the employee and a motivated employee is more likely to work for the benefit of the organization and to help it reach its goals.
While involving employees in the decision making process is an important way improve motivation levels, it is not the only way. Recognizing employee effort and giving them proper incentives is also important. If an organization does not reward its employees for their creativity and innovativeness besides meeting their targets, the employees will have very little incentive to go out of their way and come up with ideas for the betterment of the organization. Employees will only be motivated to give ideas and make suggestions for the company if doing so will not only benefit the company but will also be personally beneficial for the employees themselves. Proper incentives include publicly recognizing an employees efforts, promotions, pay raises, bonuses, profit sharing plans and other special employee benefits.

Even highly motivated employees with the organizations best interest at heart will not be able to give the desired outcome if they are not properly trained. Hence, the third component of HPWS is providing the employees with proper training. Training allows employees to perform their work more efficiently and assume greater responsibility within the organization. This is an important aspect of HPWS because the entire system rests on the ability of all employees to contribute to the organizations success.

Once we have understood HPWS and its various aspects, the next step is implementing it. In the technologically driven twenty first century, including technology in all aspects of the organization is not only important for the implementation HPWS but even for the general growth of the organization. Hence the first step in the implementation of HPWS is to introduce a technological infrastructure throughout the organization which allows the employees to communicate effectively and share vital business information with each other. The system should have provisions for the employees to enter their experiences, and give feedbacks, record problems and successes.

Having a technology is one thing but getting the employees to use it effectively is a completely different thing. HPWS can only be successful with total commitment from the senior and middle level management. Hence the next step in implementation of HPWS is to educate the management in benefits of HPWS and ways to implement them. This can prove to be difficult since HPWS essentially requires that the decision making process is taken away from the managers and given to the employees across the organization. Mangers who are used to making decisions and giving out orders may resent having to give up their authority. This problem is especially an issue with the older managers who subscribe to the autocratic leadership style and are used to having the control in their hands. However, without total commitment of the senior management, HPWS can never be successful. Hence, it is important to convince the senior managers to let go of some control and include their subordinates in the decision making process.

The next step is training the employees to make them ready for the additional responsibilities. For this, the management must first identify the areas in which the employees need to be trained. For example, if the sales department is still personally going to retailers to sell its products, they could be trained in using the internet as another source of sales and thus reaching the consumers directly. Also, if employees are to be more responsible, they need to be trained in managerial techniques which would allow them to take better decisions. Another policy which could be adopted across the organization is encouraging employees to self educate by sponsoring employees who wish to go back to school to further their education. This important investment in human resource will not only result in a more skilled workforce but also employees who are more loyal to the organization.

Most employees value a system which gives them chance to grow in their career. Career progress is seen as an important motivational tool. If employees feel that their participation and hard work can provide them with an opportunity to grow in the organization, they are more likely to contribute positively. To ensure this, the organization could shed some of its hierarchy based bureaucratic policies and introduce a more merit based system for employee promotions. Once employees know that their hard work will be rewarded not only in monetary form but also through increased opportunity for career growth, they will be a lot more motivated.

Finally, a proper feedback system is also important. As mentioned before, some senior managers may resent giving up control and despite training may soon fall back to their old system of management. Hence introducing a 360 degree feedback system will allow managers to understand how their performance is viewed by their coworkers and allow them to make changes in their management style according.

A Word of Caution
Although HPWS has many benefits, if not properly implemented, it may not give the desired results and the investments made in implementing the process may further affect the profits. As Chaudhuri (2009) points out, since organizations invest heavily in implementing HPWS, they expect to receive proportional rewards for their efforts. This results in employees feeling an increased pressure to perform, resulting in stress, deteriorating work-life balance and burnout. This may result in poor or negative results from HPWS. Hence, the management must guard against being overzealous and making too many demands of the employees. HPWS works by nurturing the employees, an organizations most important asset. This takes time and the management must understand that HPWS is a long term investment and not a quick fire solution to all its problems.

HPWS has a number of benefits as a tool to help raise employee motivation levels and participation within the organization. However, implementing HPWS is expensive and it does not give immediate results. Hence, before implanting the system, the management must consider all the aspects of HPWS and be prepared for the long haul. In the long run, the system will definitely yield positive results and the management needs to be patient about its results.

Multi-Criteria Decision Analysis is one of the most important decision making frameworks which can result in better decision-making once used by a given person, in a family, or even in an organisation. This framework would be useful once applied by a person in making a concrete decision when it comes to the purchase of a given commodity. This paper therefore gives some personal decisions that can be made when one is deciding to purchase a five-seat family car. Some of the major considerations that have to be put in place include the cost of such a car, the petrol consumption, and the comfort of the given car. With six cars to come up with the final decision, it would be necessary to apply the Multi-Criteria Decision Analysis that will guide us all through to the final decision.

Introduction

In todays world, real decision-making has been known to be faced by a number of problems that tend to be complex, ill-structured and sometimes unrealistic (Figueira, 2004, p. 16). It would therefore be necessary for any given individual willing to come up with a necessary decision to come up with a framework which would enable him the examine the criterions, the attribute, or the point of view on which the decision is to be arrived at. This way it would be possible to come up with some kind of workable decision. In fact, any given uni-dimensional model or approach will be merely a simplification of the existing nature of any problem being faced at that given moment. Once such a decision has not made correctly, the chances are very high that it may end up resulting in misleading decisions by the end of the day. Therefore, any appealing model of approach would need to address all the pertinent factors related to the existing issues at hand (Figueira, 2004, p. 18).

However, with this kind of model approach, there are a number of issues that may tend to emerge. Some of these issues are how will several conflicting factors be aggregated to come up with one evaluating model, what will be the uniqueness of the model Because of the existence of such issues, a given number of researchers within a number of business disciplines have been keen to come up with addresses and solutions which can provide man with better ways of decision making (Keeney, 2003, p. 23). This has therefore been the reason behind the realisation of statistical approaches, the application of human problem-solving intelligence techniques, and the use of research methodologies (Keeney, 2003, p. 26). Obviously, any model designed with the sole purpose of helping in any kinds of decisions making will be highly appreciated and acknowledged by all those people wiling to make a vital decision. This has therefore ensured that all decision-makers consider all such issues whenever they are to develop any good decision-making structure or model (Keeney, 2003, p. 29).

Nature and Application of MCDA

We have been having more and more complexities occurring in todays real-world problems and decision-making. This is so because there have been the occurrence such plethora in the factors, nature and the criteria through which final decisions can be arrived at. This brings a number of factors which should be involved in necessitating any successful implementation of a given theoretical framework in decision making (Figueira, 2004, p. 62). This brings about the Multi-Critical Decision Analysis, MCDA structure as the best model or framework for solving such worries. MCDA is therefore known to provide an individual with the necessary mechanisms or framework to successful decision making. This will also provide a complete variety of sophisticated tools which give a methodological approach to a given problem. Such a framework will be useful once oriented into supporting the decision making, thereby being able to face and handle all the emerging trends in real- decision making techniques. Looking at the MCDA, it is a reputable decision-support method orientated through the combination of all the problems faced by an individual or organisation, and coming up with realistic and advanced modeling techniques for solving problems and decision-making (Keeney, 2003, p. 32).

Looking at the Decision Analysis Technique, its major distinguishing thing is that it does not rely much on theoretical or statistical assumptions. As more and more people require decision-operations which are useful and worthwhile, the application of MCDA continues to grow enormously. This advancement has therefore become the foundation aspects for appropriate MCDA which gives an interface for the existing behavioral theories of decision making and the current prescriptive practice aimed in solving any existing problem (Keeney, 2003, p. 41). The framework has therefore been providing major assumptions, methods, and even methodological models and aspects which involve the continual development of effective decision-making strategies. Over the last three years, global researchers have been trying to explore the application of MCDA framework in other fields such as human intelligence, algorithms, network connections, and even in fuzzy sets. Once such diverse natures of MCDA will be integrated, there will be an increase in the potentialities in coming up with advanced decision-making support tools (Pardalos, 2006, p. 32). This would be useful in solving the existing complexity within real-world problems, hence the need for better decisions.

Application of MCDA in Purchasing a Family Car

In purchasing a family car, there are a number of issues that have to be addressed before the final decision can be arrived at. This is so because there have been a number of issues that have to be solved. This would therefore call for the application of a good decision-making model, and that way it will be easy to come up with a solution which would lead a person in buying the best car. The car which is arrived at should be able to address some issues such as the cost of the car, petrol or fuel consumption, the ability to safe-guard the environment, the durability aspect of the car, and finally, the ability of the car to provide the necessary comfort to the people within the family.

Having such a challenge, any expert will have to realise that there can ever be a better way to go about this problem, but by adopting Multi-Criteria Analysis model. This is because there are about six different cars that seem to provide all the above qualities. Although that is the case, all the six cars may not have similar achievements and capabilities in addressing all the above issues. This means that it will be inevitable to use a model that will guide us in arriving at our necessary decision. Once a final decision has been arrived, it would be easy to compare such cars and purchase one car which provides with it the best deal here.

In order to come up with the best model here, it would be necessary to look at the key steps and procedures through which we shall set our priorities right. Using the MCDA technique, we will first be required to get the list of our major options, then derive them in a table with rows and columns. Our items from which we will have our final selection would be aligned within the rows of our already created table. There are a number of factors which we will be supposed to put into consideration within our Multi-Criteria Analysis Model. These factors of considerations will hence have to be put on the columns. The major factors of considerations here will include comfort of the car, petrol issues, environmental impacts, and the cost of the car among others (Zopounidis, 2002, p. 31).

Once this has been replicated in our table, the next important thing is to score each of the option-to-factor combination, then carry out the weight of each given score, then sum all the scores. This will give the overall scores with each given option. With our already created table, the initial step would be to come up with the necessary list of the six cars which are being compared by the willing buyer. This is then followed by the necessary factors of considerations in the purchase of the car. Having done that, we will have to come up with the relative advantages or importances within the factors of the already promising decisions. This will be shown in numbers 0 to 5. The use of a 0 will mean that the given factor will be absolutely unnecessary when it comes to the final conclusion or decision. With 5, the indication is that the decision will be extremely significant and very important (Figueira, 2004, p. 71). This is a clear indication that the decision is perfectly applicable and acceptable as compared with the others. With our desire to buy a comfortable five-seat family car, we will be required to use these details in weighting out our existing preferences, and this will be dependent on each and every factors importance. Another important thing to consider is that the values may tend to be obvious, and if they are not, it would be necessary to apply the Paired Comparison Analysis technique in their estimation (Pardalos, 2006, p. 38).

After that has been done, the next step requires one to work his way down the already created columns in the table. This will be done by scoring for each and every option or factor as given on the column top (Pardalos, 2006, p. 41). Such a procedure tends to be vital for coming up with the final decision with MCDA. During this procedure, it is required to score for all the existing options, and this is done from 0, meaning poor, to 5, meaning very good. During this process, there should be no different scoring for the already stated factors or options. This is to say that there should be different score s within the options. If it happens that there is none of the elements that are good within a given factor for the decision-making, then it is required that such options are scored 0 (Pardalos, 2006, p. 44). After that has been successfully done, the next thing will be multiplying each of the scores. This is done from the step number 3, by all the values with relative importance. This will be useful in giving the weighted scores in all the combinations of option and factor. Finally, all the weighted scores are added up within the options. This means that the option having the highest score will win, hence giving the final decision (Pardalos, 2006, p. 61).

Looking at our scenario here, we need a family car which would be cheap, elegant, comfortable, less fuel consumption, and durable. This car will not just be purchases without giving an analysis which would be useful in making a concrete decision. This will therefore require the application of a Multi-Criteria Decision Analysis Model so that the best decision may be arrived at. With many options in the market, it would be necessary that such an analysis is carried out so that the best car is purchased which provides all the already stated requirements. For instance, most of the available cars have been designed for the family comfort. In order to achieve this, it would be necessary to have some knowledge of the available cars and how they can be able to meet the above requirements. Having that in mind, it would be easy to come up with the necessary options. The options will be
Volks-Wagon
Camry
Mercedes Benz
BMW-Family car
A station wagonPeugeot
Nissan.
Criteria that he wants to consider are
Cost.
PetrolFuel Consumption
Comfort and Fun over long distances.
Environmental impacts
Look and build quality to car.
Once we have come up with such factors and factors, the next will be to draw up a table as shown in the Figure 1 below, then the scores for each option will have to be entered depending on the satisfaction for each factor.

Figure 1 Grid Showing Unweighted Assessment of the Satisfaction of each Car on Each Factor
FactorsCostPetrolComfortEnvironmentQualityWeightsVolks-Wagon10013Camry32221Mercedes Benz12332Peugeot 13330Nissan20011

Once the above has been done, the next thing is to decide on the relative weights within each of the stated factors. What we so here is to multiply these with the scores that have been entered, then get the summation. This leads us to Figure 2.

Figure 2 Analysis Showing Weighted Assessment and How Each Car Satisfies the Factors
FactorsCostPetrolComfortEnvironmentQualityTotalWeights54312Volks-Wagon5001612Camry15862233Mercedes Benz5893633Peugeot 51293027Nissan10001112
Our final decision here will be the Mercedes Benz or the Camry. This gives a very interesting result Despite the cost, the Mercedes Benz becomes a right choice, or a Camry. This will therefore ensure that the family would be able to buy such a car. Sometimes it may occur that the customer may still realise that his woes has not been solved by this Decision Analysis Model. It can be because at some given point he or she has underestimated the major importance or impacts in one of the already stated factors. This means that the person will have to fore-go the other cars and stick with the Mercedes Benz or the Camry. Once two conflicting decisions have been arrived at, the person may be required to choose any, or carry out the model again, or even come up with considerations on the two choices and see the one he will be comfortable with (Figueira, 2004, p. 66).

Evaluation of the Model

The Analysis model has proved to be very helpful when one has to decide within a number of options and factors. This is necessary since the person will be able to come up with necessarily decisions. This means that all the major problems facing all decision-making procedures. This helps one come up with necessary several options since it is easy to come up with a final solution. This will also take a number of factors into consideration (Roy, 2006, p. 47). In evaluating our model, we see that we have been successful in coming up with the necessary solution which would lead us in the final decision in the purchase of the car. This brings us to the conclusion that a Mercedes Benz and a Camry would both provide the family with all the requirements it needs (Zopounidis, 2002, p. 37).

This therefore means that this model can be used even in different organisations for coming up with necessary decisions. Basically, in coming up with such a design, we will be required to use this model as a tool, and this encompasses laying out the already stated options within the rows of a table. The factors are then set within the columns of the table (Vincke, 2002, p 39). After that, one will be supposed to set up all the columns in showing the factors being considered. Then, the next important thing is to allocate the weights so as to show the major importance and significance of all the already stated factors. After that, the scores for every choice and factor are done using digits 0, for poor, to 5, for good. Any other given student will therefore be required to apply the above methods and guidelines so that he can be able to come up with the necessary decisions concerning the car that he may purchase (Roy, 2006, p. 49).

It has hence been noted that such a Grid Analysis would be a very important tool when it comes to decision making. Also, the use of sophisticated MCDA models has been known to involve the use of highly complex digital modeling structures with different potentialities and a given number of scenarios. This would hence require the use of advanced mathematical softwares and statistical analysis (Figueira, 2004, p. 78). It will therefore be agreed that our evaluation was a success because we were able to come up with a final decision concerning the appropriate which we could buy and meet all our expectations.

Looking at it the international measurements and frameworks in decision making, we will agree that there are very many ways through which we can successfully apply MCDAs in coming up with vital decisions which would eventually result in major economical advancements and developments (Vincke, 2002, p 48). The literature for management operation and research in science has been showing that the world is today experiencing an increasing rates in the real-world problems, and hence increasing the applications of MCDA and similar operations in coming up with necessary decisions. Of course, it would therefore be necessary to mention some of the major sectors of the economy that have been known to apply MCDA models in making concrete decisions which would help in improving business operations. Looking at the field of economics and finance, MCDAs have been used in predicting any form of business loopholes and failure. There is also looking at credit transfers and risks managements. Other sectors in finance include financial planning, policy specification, company acquisitions and mergers, and portfolio management and selections (Vincke, 2002, p 62). Other fields applying this model are agriculture, commerce and trade industries, and even educational institutions such as colleges and universities.

As more issues continue to occur in todays real-world, it has been necessary that people come up with ways of solving problems and making decisions. This is so because there have been the occurrence of changing factors in nature and the criterion through which a final decision have to be arrived at. This therefore brings a number of factors which have to be involved in necessitating any successful implementation of a theoretical framework for decision-making operations (Zopounidis, 2002, p. 45). This makes MCDA the necessary structure and the best model for solving these existing worries. MCDA will hence provide any individual or organisation with necessary mechanisms for successful decision making. This will also provide a variety sophisticated tools which give a methodological approach to already stated factors and options (Zopounidis, 2002, p. 48). Such a framework will therefore be useful as a model for supporting decision-making, and also being able to face and handle all the emerging trends in real- decision making techniques. Looking at the MCDA, it is hence a reputable decision-support tool orientated within combination of theoretical analysis and applications in problem-solving and decisions-making.


Looking at the final result after the application of Multi-Criteria Decision Analysis, we have noted that it is a comprehensive, yet useful alternative for solving any major problem, a situation and drawing the possible preferences or values which would result in taking better options. This decision making process has been of great making since it provides the framework into the realization of homeland decisions, which are justifiable, economical, transparent and worthwhile (Zopounidis, 2002, p. 63). As a conclusion, we will note that MCDA provides one with the necessary framework that links the technological aspect of a commodity or machine, to its performance and environmental interferences, thereby resulting with a decision-making criterion which weighs all the elicited issues on the ground, and hence giving a final solution. This is hence a key measurement for coming up with the necessary decisions. Such MCDAs can also be applied in the operations of a business or any other given organisation.

    The paper presents a sports financial plan. In order to understand the critical sports financial issues, a hypothetical organization Apex Gym is being studied. Apex Gym is a fitness center for families that offers a vast range of services such exercise equipment, diet plans, physical therapy, yoga, massage, child care cafeteria. The basic financial objectives of the firm are to breakeven in the first year of operations and achieve the target of 300 memberships in the first year. Decreasing Ac payables and increasing inflow of cash are also its short term goals. Other than this long term plans include expanding of the child care centre and cafeteria facilities.

Apex Gym will basically operate as a partnership with 40 with Mr.Huang and 60 with Mr. Seng. Their responsibilities as partners are also discussed in the business structure.

Follows this is the elaboration of various sources of revenues and expenses for Apex Gym. The main sources of revenue are membership fees and sales from cafeteria. Then the projected financial statements for three years are discussed. According to these statements the company reports profit in the first year.

Fundraising will be done through promoting the business before the business actually starts. Customers will give discounts to register themselves with Apex Gym beforehand. This will have inflow of cash needed to fund the project.

Description
Apex Gym is a Fitness Centre that offers exercise equipment, fitness classes such as yoga, aerobics and other workout plans. It also offers a weight loss program. Apex Gym targets the whole family for its service and in order that parents spend their time peacefully and tension free in gym, a child care centre is also built. This child care centre wont charge extra. Itll be added benefit. It also offers massage and physical therapy sessions. There is also a small cafeteria which has light items such as juices and healthy sandwiches and salads.

Customers will be required to pay a membership fees to avail all these facilities. The membership fees would be based yearly with the option of paying fees in installments as well. The facilities of cafeteria will have additional charges.

Financial Planning Strategies
Objectives
Apex Gym aims to achieve the following objectives
To acquire approximately 300 memberships in the first year of operation.
To breakeven in the first year of operation.
To achieve the projected growth rate of 15.
To increase memberships by 25 by the end of second year of operation.
Short Term Planning
As all of the objectives mentioned above should be achieved in 2-3 years time, they come under short term planning. Apex Gym aims to invest heavily in marketing and promotion budgets to achieve its objectives. Unless and until marketing isnt strong, people wont be willing to register themselves with Apex Gym.

Computerized Financial Planning Models shall be used in order to forecast future sales and growth rates. Plans regarding paying of Ac payables and reducing the receivables will also be made here. Apex Gym also aims to maximize the inflow of cash and increase liquidity so that no loans are taken to pay off short term expenses.

Long Term Planning
Apex Gym intends to expand its child care facility in the near future. It plans to have facilities as a day care centre haves so that parents can easily follow their exercise routines and dont get disturbed due to their children. Funds for this plan will be arranged through retained earnings and additional investment. The additional investment will be done through obtaining long term loans.
Long Term Planning will be basically done after thorough analysis of financial statements and financial ratios. If the results seem fruitful then the company shall expand the day care centre and cafeteria. The cafeteria will sell various exercise and sports goods for additional revenues. If Apex Gym will take any loans then long term plans would be made to pay off loans as well.

Business Structure
The company will operate as a partnership between two partners namely Mr. Xiu Huang and Mr. Chang Seng. Mr.Huang will be responsible for overlooking the finance and accounting where Mr. Seng will be responsible for all other activities such as management, hiring, daily operations etc. As Mr. Huang is graduated in Information Technology (IT) he will also be responsible to make and run an automated system for accounting, daily expenses and data regarding customers and memberships.
The profit will be divided amongst Mr. Huang and Mr. Seng in a ratio of 40 and 60 respectively. They both hold the position of directors and are in the executive body. All the major decisions should have a mutual agreement of both the partners.

Revenue Sources and Expenses
The expenses are discussed in detail in the pro forma budget. The startup expenses would be the setup, marketing and rent expenses. Other running expenses that would occur are payroll, depreciation, utilities, interest and various miscellaneous expenses. Salaries would also be a major expense.

Apex Gym will earn its revenues from membership registrations. Membership is 300 a year. Other revenue source is from cafeteria from the sale of eatables. An estimate of 30,000 is taken as revenue from eatables from the cafeteria. Retained earnings and idle cash will be invested in stocks and various saving certificated to earn additional revenue.

Financial Statements
Financial Assumptions
Some important financial assumptions before projecting the income statement and balance sheets are
The economy is assumed to be stable and growing.
There are no significant changes in the health concerns of the citizens.

Income Statement
Year 1Year 2Year 3RevenuesMemberships90000112500140625Sales from Cafeteria300003450039675Total Revenues120000147000180300Operating Expenses Marketing and Promotional150015001500Insurance500500500Stationary500500500Rent250025002500Non Operating ExpensesInterest Expense000Interest Income000Total Expenses500050005000Earning before taxes115000142000175300Taxes402504970061355Net IncomeLoss7475092300113945Balance Sheet
Year 1Year 2Year 3Current AssetsCash20,00025,00030,000Office Supplies112502380040455Fixed AssetsEquipment80,00080,00080,000Total Assets111,250128,800150,455Liabilities000Owners EquityPaid in Capital365003650036500Earnings7475092300113945Total Liabilities and Capital111250128800150445Pro Forma Budget
The pro forma budget will incorporate all the startup expenses to calculate the amount of total expenses that need to be funded.

DescriptionAmountRent2,500Child Care Setup5,000Cafeteria Setup6,000Legal500Stationary etc.500Marketing1,500Insurance500Exercise Equipment80,000Total96,500Fundraising
Apex Gym intends to raise funds through promoting itself before the construction starts. An event in a form of physical fitness seminar will be conducted to attract people. A membership drive will be initiated in the seminar which will aim to register prospective members. These members will be offered a discount on their membership as theyll be the few first to get associated with Apex Gym. These members will be entitled to pay 300 for the first year and 200 for subsequent years. In this way if Apex Gym is able to get 200 memberships it will generate 60,000 which is good enough to start the business and construction. Both the partners will invest the remaining amount that is 36,500. Each partner will invest 18,250.

All the future funding will be done through retained earnings or personal investment. Acquiring loans will be the last option for the company. If the investment per person exceeds 10,000 then a bank will be pursued for loan.

Apex Gym will achieve success and profitability if its able to achieve its short term goals and long term goals. Financial planning gives an overview of the whole business and its future prospective as well. If it doesnt then there should be contingency plans as backup plans to minimize loss.

When do we decide what we want to be As we grow up, we decide on several different careers before we finally settle on something we like. For some others, careers change even after they finish their graduation as they jump from one career to the other. Thankfully, though for me, this question was never an issue. I have always known what my profession will be. In the next few years I see myself as a businesswoman, taking care of our family business.

    I know of many people who grudgingly take over the family business and complain about it for the rest of their lives, saying that they would have been better off doing something else. While some people are forced into their family business others do it just for the money. My reason has been neither. I have always wanted to be a businesswoman and to take care of my fathers business as I feel that it is my responsibility. My family has never pressurized me to take over the business. But the independence and creativity that a business enterprise can give a person is according to me unique and cannot be found in any other career. This is the primary reason why I wish to study business management. I wish to take my family business into the highest league possible.

    Another important reason why I wish to study business management is because I want to represent my country. My parent country which is Saudi Arabia has very few women representatives. As a woman, I want to prove to my other countrymen that women of Saudi Arabia have just as much grit as the men.

    The most important quality in a student has always been a thirst for learning. Student life is also more about being able to work with others and maintain a calm and peaceful atmosphere. I have always been a fast learner and a team player. I am patient and am enthusiastic about learning. I strongly believe that when one wants to learn, then no subject or discipline is difficult. I am a goal-oriented person and I believe that once you set goals and you follow your goals with determination and persistence, then nothing can stop you from achieving them. This has always been my philosophy. I set my goals and then I chase them with single-minded determination. Studying Business management has always been a dream for me and I will strive to achieve my goal and to succeed.

    In addition to being an avid learner, I am physically fit. I play tennis, volleyball along with being a good swimmer. I am also involved in fencing and archery. Spending all the time studying can only serve to increase stress, hence I keep myself balanced by involving myself in the above physical activities.

    I take pride in saying that I am also an avid photographer. The art of photography involves deeply contemplating the angle of light and many more small details and taking the shot at the right time. Photography has helped me to greatly improve my patience and made me more detail-oriented. I also enjoy going to social events. These social events according to me are a great way for me to improve my social skills which would come in handy to me once I take over our family business. 

    I have greatly benefited from the time I spent working as a Treasury Holder in the Fransi Saudi bank where I was able to better hone my social skills. I also volunteered once in DESCA which is an institution for disabled individuals. It is an institution where the disabled are given proper education and are taught how to deal with the outside world. It was an uplifting experience and it gave me a perspective of how difficult it would be to live without some part of my body which most of us take for granted.

    Lastly, I want to say that I am a hardworking, patient and a positive individual and will strive to achieve my goal.