Obesity and Biology

Obesity and Biology Obesity isn’t classified as an eating problem anymore. It is more than that a person’s biology plays a big roll. Cells and hormones play a big roll on how big you are and how your body regulates energy. Food equals energy and the body stores that energy in fat cells and uses the energy as needed. The metabolism breaks down that food and uses the energy generated from that food for everyday activities such as walking, talking, thinking. The faster ones metabolism is the more efficient they are at breaking down food and using the energy.The slower the metabolism the more energy gets stored and gets turned into fat cells and not used. The hormone leptin, which is produced in fat cells, sends signals to the brain telling it that its levels are dropping which means the cells are reducing. When this occurs the brain processes that information as starvation and sends signals back to slow down the metabolism and store as much energy as possible. There are pe ople who eat less than other but still gain weight. That’s a biological problem. There are areas in the brain research has found that if damaged can lead to obesity.One such area is the ventromedial hypothalamus and the surrounding axons. If this area in the brain is damaged at then this can lead to overeating and more storing of fat cells. Research conducted on rats at the University of Nebraska looked at this area in the brain and how it affects food intake and body weight. With damage to that area the rat nearly tripled in size in the cores of about sixty days. Food intake does not always correspond to body weight. It is possible to excessively eat and not gain weight. It just matters how active one is and how efficient the metabolism is.There are other areas in the brain located in the prefrontal cortex that also can affect body weight. Those areas are responsible for food-seeking behaviors. If one is always hooked on seeking high fat food such as burgers and high sugar d rinks such as coke then that can lead to an overweight problem. The problem with sugared drinks such as coke is that it is high in fructose sugar and that particular sugar does not raise insulin or leptin as other sugars do. So you drink more of the soda, which equates to more calories without satiety. The brain is not the only factor in weight another factor can be genetics.Your gene makeup can be responsible for how much energy you store, and that’s all been passed down to you from your ancestors. If your ancestors were only getting by in life by eating very little as about 1000 calories a day and storing a lot of energy in fat cells and using that energy efficiently then that means you should not eat foods that are high in fat. The reason is your genetic makeup structures your body to store more energy from food. Those whose body is structured like this that eat a normal diet of about 2500 calories a day will gain weight.That is due to the fact that the genes were from the ancestors thought a normal diet of about 1000 calories was good enough to get them by. In America most foods you find these days have a lot of fat in them. Good tasting unhealthy food is cheaper than healthy food. A burger is way cheaper than a salad these days. The American life style requires people to be able to get food quickly. No one likes waiting anymore and barely anyone cooks anymore. Home kitchens are beginning to shrink as Americans waist size is beginning to grow. Fast food restaurants blanket almost every business street.Americans eating lifestyle is one of the biggest factors in their weight. Obese people who lose weight end up gaining it right back because the brain thinks the body is starving because there are not enough fat cells that it was normally used to. A person that loses weight cannot eat the same amount as a person who is naturally at that weight. They have to eat about 500 calories less in order to maintain their new weight. Its not only a temporary diet they have to be on, but a lifetime diet if they want to keep the weight off and they have to exercise everyday.

The strategy of The Body Shop

â€Å"Business people have got to be the instigators of change. They have the money and the power to make a difference. A company that makes a profit from society has a responsibility to return something to that society.† 1 (Roddick, 1991) This statement, by Anita Roddick OBE, founder of ‘The Body Shop', demonstrates the strong ethical dimension of the company's way of doing business. She opened her first shop in Brighton on March 26th 1976 selling 25 varieties of 100-percent natural skin and hair care products inspired by cultural knowledge from around the world. The company has expanded dramatically since its origins and now has over 1900 stores worldwide. Despite its rapid growth, the strong beliefs and values existent in 1976 remain deeply embedded within the organisational culture. Throughout this writing I will discuss these beliefs and values in the context of corporate strategy and decision-making, and demonstrate how it relates to theoretical frameworks within the corporate strategy field. I will analyse The Body Shop's strategies using these theoretical models, and compare and contrast the models themselves. The strategy of The Body Shop in comparison to other businesses within the cosmetics and toiletries industry was unconventional. Their rapid growth, achieved mainly through franchising, was primarily due to the ‘green' nature of the organisation, prioritising ethical practice over making profits. â€Å"Ever since she started The Body Shop in 1976, Roddick had made a habit of going against the tide of the industry's established business practices.† 2 (Mintzberg, Quinn, Ghoshal, 1991: 447) This quotation reinforces the notion of The Body Shop's alternative approach to strategy. Unlike other companies within the industry, they didn't make miraculous claims for their products; they allowed labels with detailed lists of the ingredients and properties of products to tell customers about each good. This links in with the fact that a major component of The Body Shop's strategy was that they never engaged in any advertising. Throughout history and in contemporary advertising, organisations within the health and beauty sector have constantly bombarded the public with claims and promises associated with their products through the use of adverts and promotions. â€Å"The cosmetics industry makes its money through packaging and advertising, which together are 85 per cent of its costs.† 3 (Mintzberg, Quinn, Ghoshal, 1991: 453) This is a cost that The Body Shop's strategy enabled them to avoid. The business was started with just a $6000 bank loan, and so it wasn't possible to engage in expensive advertising campaigns, moreover, it was against the values of the organisation, who preferred to rely on word-of-mouth and publicity to secure sales. It is said that the initial success of the first store was a lot to do with the curiosity and publicity acquired through a local newspaper article illustrating the fact that it was called â€Å"The Body Shop† and was located close to a funeral parlour. Their strategy exploits the fact that they are a socially responsible organisation, meaning that customers buy their products knowing that nothing has been artificially manufactured and are produced with 100 percent natural ingredients. This unique selling point, together with their prominent beliefs and values, has the affect of providing The Body Shop with a competitive advantage over other firms in the industry. This will be developed in more depth later in the writing. The Body Shop's strong social message is reflected in every aspect of their mission statement. From dedicating the business to the pursuit of social and environmental change, to meaningfully contributing to local, national and international communities in which they trade.4 â€Å"The company is significantly involved in local communities and is prepared to get political and talk about big issues in countries where it does business. No company in the world campaigns at the level we do, or turns their shops into action stations, or challenges the role of business like we do.† 5 (Roddick, 2002) Throughout history The Body Shop has rapidly expanded geographically as well as in terms of their sales and product portfolio, however, in the late 1990s their performance began to suffer. As a result, February 2000 saw fundamental changes to the organisation and management, including substantial changes to the board of directors, and the outsourcing of manufacturing to a company named ‘Creative Outsourcing Solutions International Limited'. Anita and Gordon Roddick became non-executive directors and there were five new appointments to the board, including a new CEO. Despite these changes The Body Shop's performance failed to be rejuvenated, which forced them into more drastic changes. â€Å"In the most recent annual report, Peter Saunders (CEO) commented that the group's objective now was to apply a strategy to drive performance across the global business†¦The single most important priority, he added, was to improve comparable sales performance across stores through effective new product launches.† 6 (‘Mintel', 2003: 137) These new objectives seem to have the effect of diluting the self-proclaimed visions and primary concerns of The Body Shop. It could be said that the current management have somewhat contradicted Anita Roddick's earlier philosophies. â€Å"Too many businesses have gotten distracted with management structures and†¦making money.† 7 (Roddick, 1991) One of the main underlying reasons why they have encountered their current problems is because many companies within the health and beauty industry have noted the success of The Body Shop and are responding to the ever-increasing ‘green consumer' themselves through the release of their own versions of ‘all-natural' products. Examples being ‘Està ¯Ã‚ ¿Ã‚ ½e Lauder Origins', ‘Revlon New Age Naturals', and ‘Clairol Herbal Essences'. Competition erodes profit, and, as a result of the increase in competition, The Body Shop have lost their competitive advantage of being able to supply what others cannot. The strategies of The Body Shop can be analysed using several theoretical models from within the strategy discipline. Situation analysis can be used to determine what advantages BS have, or have had, over their competitors, and can illustrate how The Body Shop was so successful for many years. This theory, termed by Mintzberg as the ‘Design School', was based upon work by Professor Kenneth Andrews and addresses, amongst others, the view that: â€Å"Strategy is concerned with identifying opportunities in the enterprise's external environment which it is better qualified to exploit than its competitors.† 8 (Lilley, 2003) The current situation of The Body Shop was analysed by Mintel and appears in their February 2003 publication on health and beauty retailing in the UK. STRENGTHS * Strong worldwide coverage helps to spread corporate risk. * Well known and well respected global brand. * Franchising has enabled the company to grow at lower cost and lower risk. * Still has strong ethical and environmental credentials. WEAKNESSES * Mature business, with declining like-for-like sales. * Appears to lack the inspiration to re-invent itself. * Vulnerable to imitators. * Franchising reduces level of corporate control. * Rapidly rising rental costs in the UK. * Limited growth opportunities in terms of new geographical regions. OPPORTUNITIES * Still potential to enter new markets in Europe especially Central/Eastern Europe and other parts of the world. * Implementation of strategy to control costs and working capital in order to improve profitability and cash generation. * Development of more pharmacy concessions in Ireland and possibly other markets. * Further development of e-commerce and other non-store channels. THREATS * Strong competition from other innovative and environmentally friendly health and beauty retailers. * Great competition from discounters and grocers' health and beauty offer. * Recent new product launches have yet to produce a positive impact on sales densities. * Continued lack of like-for-like sales growth threatens profitability and the group's scope to expand physically. ‘Figure 1': SWOT Analysis of The Body Shop International Plc. 9 (Mintel, 2003: 144) The above analysis was compiled after The Body Shop's decline in performance – it is clear that all the threats from the external environment are modern occurrences that wouldn't have been an issue during their period of rapid growth in the 1980s. Throughout this time they effectively maintained a portfolio of differentiated products and, perhaps more prominently, a unique and differentiated brand image, which enabled The Body Shop to compete and be successful. â€Å"Product differentiation means that established firms have brand identification and customer loyalties, which stem from product differences, or simply being first into the industry.† 10 (Porter, 1980: 9) The environmentally friendly and ethical practices that The Body Shop claim they dedicate their business to could be described as their core competence within the industry. Even to this date Anita Roddick and the organisation actively campaign in issues such as animal testing, human rights, and protecting our planet. No other business within the health and beauty industry is as heavily associated with ethical and environmental practices as The Body Shop. The core competence of an organisation characterises its whole range, take for example, Sony's ability to miniaturise electronics or Aston Martin's competence in producing flawless motorcars. It is clear to see that The Body Shop's core competence is not only reflected throughout their product range, but is evident throughout all their business activities, from their minimal use of product packaging, to the layout of stores. â€Å"Core competencies and market-led strategy are nowadays the only pathways toward success.† 11 (Sophocleous, 2003) The strategy that The Body Shop employed can be analysed with another useful framework in the field of strategy, namely â€Å"The Five Competitive Forces that Determine Industry Profitability† by Michael E. Porter. This cannot be applied directly to The Body Shop, but can be used to analyse the external environment in which they operated in the past, and how it changed in the late 90s. ‘Figure 2†²: Forces driving industry competition. 12 (Porter, 1980: 4) The main principle behind this model is that the profitability of an organisation is determined by the collective strength of the five forces; in other words, the industry structure directly affects industry profitability. The Body Shop initially operated within a niche market where there were no real competitors offering the same products nor backing the same principles that they were. The threat of substitutes was minimal because if customers wanted all-natural products they would almost certainly have had to buy them from The Body Shop. In relation to the threat of new entrants, initially there was nothing stopping rival firms from competing within the all-natural cosmetics and toiletries sector, however, no other companies actively engaged in the ethical and environmental practices to the extent that The Body Shop did. The barriers to market entry increased in relation to the amount of stores opened by The Body Shop, and during their period of rapid growth, their power within the niche market could have been regarded almost as monopolistic. However, customers who preferred to buy all-natural products but didn't regard it as being entirely necessary could easily have turned to other companies' products within the wider industry, that didn't exercise such dominant views on ethical and environmental issues. The low threat of ‘all-natural' substitution that existed in the earlier stages of The Body Shop, coupled with the fact that the arrival of new entrants was particularly low, provided them with the opportunity to control the prices they charged for their products. The argument becomes more complex when trying to categorise The Body Shop into a particular market. They could be regarded as operating completely within their own sector, but can also be viewed as just another cosmetics company with the advantage of having a differentiated product range and image. â€Å"Differentiation, if achieved, is a viable strategy for earning above-average returns in an industry because it creates a defensible position for coping with the five competitive forces.† 13 (Porter, 1980: 38) To justify this quotation in relation to The Body Shop we must consider them to be in the wider cosmetics industry, which has a high level of competitors. Their differentiation led to customers' increased loyalty in The Body Shop brand, which resulted in a lower sensitivity in price. This had the effect of protecting the company from competition and rivalry. However, as time progressed, other companies intentionally sought to compete directly in the field of environmentally friendly products. The Body Shop was able to gain an advantage over competitors by not utilising traditional distribution channels – for many years they only sold their products through their own shops. This reduced the threat of new direct competition from other companies, as the level of investment required by a new entrant would be extortionate considering they would have to open an abundance of specialist shops. However, to overcome these problems the new competitors emerged using traditional distribution channels, such as through supermarkets and department stores. â€Å"The strength of the five forces varies from industry to industry, and can change as an industry evolves.† 14 (Porter, 1985: 4) The above statement from Porter's work in 1985 is related to the case of the cosmetics and toiletries industry in that the emergence of greater competition in the 90s meant that the strength of the competitive rivalry aspect of the five forces within the industry increased. In addition, customers now have the ability to simply pick and choose alternative brands' all-natural products in confidence – an increase in the threat of substitution. Through the use of Porter's five forces model we can see that the changes in the strength of the forces within the cosmetics and toiletries market have accounted for the recent decline in performance of The Body Shop. In the early days of the company, the threat of like-for-like substitutes and the associated power of customers were relatively low in comparison to the modern day situation. Competitors have increasingly matched the core competences of The Body Shop, and, as a result, the significant competitive advantage that they once had has been reduced. â€Å"Competition in an industry goes well beyond the established players. Customers, suppliers, substitutes, and all potential entrants are all ‘competitors' to firms in an industry.† 15 (Porter, 1980: 6) This quotation by Porter reveals that the five forces model has limitations with regard to The Body Shop case. The Body Shop do not regard their suppliers as competitors; in fact they want to actually financially support their suppliers. This is evident from their mission statement in their aim of balancing the financial and human needs of their suppliers. These more esoteric aspects of The Body Shop's strategy, termed by Anita Roddick as them doing ‘business as unusual', highlights another main drawback of the five forces model, in that it is geared around profit being the primary concern of an organisation and doesn't provide any flexibility or scope for change. The Body Shop's early successes can be partly attributed to the strong customer base they secured due to the general movement in society towards being more environmentally and ethically aware. The framework doesn't deal effectively with this idea of customer preference or changes in trends, nor does it cope with the notion that customers were gained through the fact that they appreciated, and could relate to, the values and beliefs of The Body Shop and their efforts to pursue social and environmental change, and not just because of factors relating to price. On the other hand, the SWOT analysis model is useful for clearly displaying the advantages of an organisation in relation to the market within which it operates, together with the negative aspects of the internal organisation and external environment. As with all theories, however, there are a number of limitations associated with it. All of a business's strengths do not necessarily directly contribute towards providing a competitive advantage, SWOT analysis also has the tendency to take a single dimension of a firm's strategy over-emphasise it. It is difficult to prove which strengths are likely to provide the most benefit to an organisation, and also determine which opportunity should be given more attention to shape the overall strategy of the business in question. The findings of SWOT analysis are greatly shaped by the opinions and perceptions of managers or analysts, meaning that they can be regarded as subjective in nature as opposed to the, perhaps initial appearance of being objective and rationally constructed. â€Å"What we are dealing with here is not the organisation or environment ‘in itself', rather we are attempting to extract and combine the perceptions of these entities that exist in the minds of managers.† 16 (Lilley, 2003) In conclusion, after analysing the strategy of The Body Shop using frameworks from the strategy discipline, it is apparent that SWOT analysis deals well with the unique aspects of The Body Shop's strategy. Although the analysis of The Body Shop's situation is greatly dependent upon personal judgement, their strengths shown in figure 1 give an accurate account of the 25-year success story, which was primarily based upon The Body Shop's core competence in displaying continuous proactive dedication towards ethical and environmentally friendly practices, together with their prime high street and inner-city shop locations, and famous and respected global brand. The reasons for their decline in performance during the late 90s are clearly displayed in the ‘threats' category of the analysis, prominently highlighting the emergence of increased competition from other companies operating within the health and beauty industry, who are reaching consumers through traditional distribution channels and via supermarkets. Michael Porter's model of the five competitive forces is valuable in that it offers a simple, structured analysis of the industry, but is limited in the sense that it's unable to satisfactorily consider the dynamics of markets, for example, the movement of consumer preferences towards environmentally friendly products. It can provide a helpful starting point for further analysis, but simplified versions alone can prove inadequate. It provides an account of how conventional, profit-maximising firms are affected by the structure and occurrences of the external environment, and how those firms can work towards shaping and exploiting the environment to their advantages, but fails to comprehensively account for the successes of unorthodox firms like The Body Shop, who do not, at least in their own claims, follow the usual route of or towards profit maximisation.

International Journal of Technology Management and Sustainable Development

The last decade has witnessed the emergence of an array of increasingly vibrant movements to harness science and technology (S&T) in the quest for a transition toward sustainability. These movements take as their point of departure a widely shared view that the challenge of sustainable development is the reconciliation of society's development goals with the planet's environmental limits over the long term. In seeking to help meet this sustainability challenge, the multiple movements to harness science and technology for sustainability focus on the dynamic interactions between nature and society, with equal attention to how social change shapes the environment and how environmental change shapes society. These movements seek to address the essential complexity of those interactions, recognizing that understanding the individual components of nature society systems provides insufficient understanding about the behaviour of the systems themselves. They are problem driven, with the goal of creating and applying knowledge in support of decision making for sustainable development. Finally, they are grounded in the belief that for such knowledge to be truly useful it generally needs to be â€Å"coproduced† through close collaboration between scholars and practitioners. The research and applications program that has begun to emerge from these movements has been called sustainability science by the National Research Council. This Special Feature high-lights this emerging program and some of the new results it is beginning to produce. The need for sustainable development initiatives to mobilize appropriate science and technology has long been recognized. Early research on sustainable yield management of renewable resources provided the foundation for the International Union for the Conservation of Nature's seminal World Conservation Strategy, published in 1980. The case for making appropriate research and development (R&D) an integral component of sustainable development strategies was broadened by a number of international scientific organizations during the mid-1980s, promoted by the Brundtland Commission's report Our Common Future in 1987, and enshrined in the Agenda 21 action plan that emerged from the United Nations Conference on Environment and Development in 1992. Over the succeeding decade, the discussion of how S&T could contribute more effectively to sustainability intensified, involving numerous researchers, practitioners, scientific academies, and development rganizations from around the world. By the time of the World Summit on Sustainable Development, held in Johannesburg in 2002, a broadly based consensus had begun to take shape on the most important ways in which S&T has already contributed to sustainability, on what new R&D is most important, and on what stands in the way of getting it done. Many of the most valuable contributions of S&T to sustainable development predate the term itself. These range from the â€Å"mundane technologies† that have improved delivery of basic needs for sanitation and cooking, through the yield enhancing, land saving accomplishments of the international agricultural research system, to the fundamental scholarship of geographers and anthropologists on nature society interactions. In more recent times, a host of R&D efforts explicitly aimed at promoting sustainability have been launched. These extend from a rich tradition of work on energy systems and ecosystem resilience to new initiatives in industrial ecology and earth system complexity. A feel for the breadth and scope of relevant R&D now underway around the world is suggested by the rapidly growing list of entries on the virtual â€Å"Forum on Science and Technology for Sustainability†. However, much remains to be done. Perhaps the strongest message to emerge from dialogues induced by the Johannesburg Summit was that the research community needs to complement its historic role in identifying problems of sustainability with a greater willingness to join with the development and other communities to work on practical solutions to those problems. This means bringing our S&T to bear on the highest-priority goals of a sustainability transition, with those goals defined not by scientists alone but rather through a dialogue between scientists and the people engaged in the practice of â€Å"meeting human needs while conserving the earth's life support systems and reducing hunger and poverty†. At the international level, the Johannesburg Summit, building on the United Nations Millennium Declaration, has defined these priorities in terms of the so-called â€Å"WEHAB† targets for water, energy, health, agriculture, and biodiversity. A more systematic study of internationally sanctioned goals and targets for a sustainability transition, together with an evaluation of the state of reporting and assessment on progress in attaining those goals, is provided by Parris and Kates in their contribution to this Special Feature. As important as this international consensus on goals and targets may be for targeting problem-driven research in support of a sustainability transition, however, it is not sufficient. A joint workshop held by the International Council for Sciences, the Third World Academy of Science, and the Initiative on Science and Technology for Sustainability concluded that â€Å"agenda setting at the global, continental, and even national scale will miss a lot of the most important needs. The transcendent challenge is to help promote the relatively `local' (place- or enterprise-based) dialogues from which meaningful priorities can emerge, and to put in place the local support systems that will allow those priorities to be implemented†. Where such systems exist, the production of usable, place-based knowledge for promoting sustainability has been impressive indeed. The commitment of sustainability science to problem-driven agenda setting does not mean that it has been confined to â€Å"applied† research. Indeed, pursuit of practical solutions to the pressing challenges of sustainability has driven the field to tackle an array of fundamental questions. The Friibergh Workshop on Sustainability Science identified a half-dozen such core conceptual questions that have been further developed through the virtual Forum on Science and Technology for Sustainability and are beginning to appear in the context of emerging agendas in other more established fields, such as global environmental change. Examples of the new sorts of research now beginning to emerge on several of those core questions are reported elsewhere in this Special Feature: Kates and Parris on â€Å"How are long-term trends in environment and development reshaping nature–society interactions in ways relevant to sustainability†; Turner et al. on â€Å"What determines the vulnerability or resilience of the nature–society systems in particular kinds of places and for particular types of ecosystems and human livelihoods? ; and Cash et al. on â€Å"How can today's relatively independent activities of research planning, observation, assessment, and decision support be better integrated into systems for adaptive management and societal learning? † The sustainability science program is also beginning to address a range of fundamental observational and methodological challenges. For example, H.  J. Schellnhuber and his colleagues at the Potsdam Institute for Climate Impact Research have developed innovative new answers to the question â€Å"How can the dynamic interactions between nature and society—including lags and inertia—be better incorporated in emerging models and conceptualizations that integrate the Earth system, human development, and sustainability. Wolfgang Lucht, writing in the IHDP Update, summarizes current work on answering â€Å"How can today's operational systems for monitoring and reporting on environmental and social conditions be integrated or extended to provide more useful guidance for efforts to navigate a transition toward sustainability and a number of groups are calling for re-examination of national and international social account measures to include sustainability considerations. Activities to advance the sustainability science program are moving forward on a number of fronts and at scales from the global to the local. One of the more up-to-date lists of programs and projects is maintained on the Forum on Science and Technology for Sustainability. As an indication of the range of activities underway internationally, the International Council for Science, Third World Academy of Sciences, Initiative on Science and Technology for Sustainability, and other organizations have formed a Consortium for promoting a coordinated international program of research, capacity building, and applications. The Earth System Science Partnership of the Global Environmental Change Programmes has launched a series of â€Å"Joint Projects on Sustainability† focused on problems of food security, water, and carbon management. An increasing number of international science assessments for environmental protection (e. g. , the Intergovernmental Panel on Climate Change and Millennium Ecosystem Assessments) are incorporating sustainability concerns. And a rapidly expanding set of multi-stakeholder â€Å"Partnerships for Sustainable Development† are developing in the wake of the Johannesburg Summit. An even greater variety of S&T-based efforts are underway at the local, regional, and national levels around the world. The research products of some of these efforts are beginning to appear in the published literature, although many of the relatively local results remain largely unknown beyond their places of origin and application. Sustainability science is not yet an autonomous field or discipline, but rather a vibrant arena that is bringing together scholarship and practice, global and local perspectives from north and south, and disciplines across the natural and social sciences, engineering, and medicine. Its scope of core questions, criteria for quality control and membership are consequently in substantial flux and may be expected to remain so for some time. Nonetheless, as the papers included in this Special Feature are meant to suggest, something different is surely â€Å"in the air,† something that is intellectually exciting, practically compelling, and might as well be called â€Å"sustainability science. †

The Distribution of Economic and Social Resources Essay

The Distribution of Economic and Social Resources - Essay Example The essay "The Distribution of Economic and Social Resources" discusses the article "Families on the Fault Line: America's Working Class Speaks about the Family, the Economy, Race, and Ethnicity" by Lillian B. Rubin who identifies four different working class families: white, black, Latino and Asian. They have much in common fighting with harsh realities of life and social problems. The three main themes cover social, cultural, and economic changes which affect these families. A major concern of social thinking is to identify the nature of these relations and to trace their social and political effects. Taking into account social factors, Rubin unveils social realities form the backdrop for future generations. For instance, Rubin explains that white ethnicity has deep roots and is closely connected with psychological and political factors. The author underlines that new immigrants including Latino, Asians, and blacks force the white working class to ‘establish a public identity ’ that helps them to rise above new comers. It includes job opportunities and equal pay, training and childcare, etc. Poor education and absence of equal opportunities with â€Å"white† working class majority are the main factors limiting the equal distribution of economic and social resources. To analyze the issue of racism, it should be mentioned that racisms are depicted as regimes of state power organized via institutional frameworks as part of the disciplinary power of state agencies, but which is subject to ongoing contestations.

Watergate discussion Essay Example | Topics and Well Written Essays - 250 words

Watergate discussion - Essay Example That is why such incidents occur because the government officials themselves are involved in such a criminal act. Due to this the later presidents such as Clinton and Obama and all the other politicians are being thoroughly investigated in order to avoid any such incidents. There are some people who don’t even bother to vote. This is so because they have seen that most of the presidents just speak and do nothing in favor of the people’s interest. But this doesn’t mean that all the government officials are like this. If I was a voter at that I wouldn’t have voted for a person like him not because I am a non voter but because its really hard to trust a person who committed a serious crime and afterward tried to hide his wrong doing by blaming the other parties. Nixon just to make his political enemy the Democratic Party weak committed such a crime. The opinions of the majority of people would have been similar because no one knows that such incidents will ta ke place or not in the near future so they find it better not to vote for any of the candidates. The impact of the Watergate scandal on the later politicians made them realize the power of the media. They also understood that no matter how much power a Presidents possesses no one is above the constitutional law of equality and in the end Nixon got the result of his criminal act. The politicians then were of the view that it’s better to be clear and truthful to the public regarding all the matters. Now the politicians had a clear-cut view that no person is above the law not even the president himself. During this scandal many lawyers were involved in it so the American Bar Association decided that the lawyers should take a course in professional responsibility which is still exists till date. More over it led to the first amendment of protection of freedom of the

Incidents in the Life of a Slave Girl Essay Example | Topics and Well Written Essays - 1500 words - 1

Incidents in the Life of a Slave Girl - Essay Example The response of the African American women to these conflicting roles entailed the creation of a new meaning to true womanhood, the basis upon which Jacobs bases her story. Through her struggles, Jacobs fights to redefine the cult of true womanhood from its oppressiveness so as to secure her life and that of the future generation. As a young African American woman slave, having lost her mother and a few years later her mother’s mistress to whom she was bequeathed, Linda Brent fights all odds against sexual oppression from her father, Dr. Flint, to the extent of having an affair with a white neighbor, Mr. Sands, with whom she begets Benny and Ellen (Jacobs 2003, 131). Linda seems to have discovered herself and her intolerance to the oppression and mistreatment that slaves, and particularly the women, were subjected to, causing her to always run away from its perpetrators, not leaving her children behind. The cult of true womanhood The 19th Century African American woman was exp ected to be a domesticator. ... Furthermore, Linda appreciates responsible motherhood as a critical aspect of true womanhood and she sacrifices her welfare so as to ensure the well-being of her children. Even when she plans to escape to the North, she considers all options of having her children escape with her. She fights to see that they do not fall into the bondage of slavery, knowing the oppression involved. This indicates her embrace of motherhood together with the involved responsibilities as an appreciation of true womanhood. The excellence of a woman in domestic tasks made her worth of praise as a true woman. Secondly, submission was a key trait of true womanhood. African American women were to abide by what their husbands and men in general dictated without questioning, since men had God-given authority over women. According to Welter (1966, 156), the society then considered submission as the most feminine virtue that a woman had to portray whereas men were expected to be religious and pure, even though th ey barely had time for these. This submissiveness is portrayed when Dr. Flint objects to Linda’s wishes to marry her love, a young free black man, and in turn Linda asks him to leave and give up on the marriage. Religion propagated this submissiveness as observed of the minister who preached obedience to masters and hard work as Christian ethical obligations (Jacobs 2003, 82). Women were particularly to be passive, submissive responders in this society. To this African American woman, marriage was not to be guided by money but pure love, and its corollary is motherhood, adding to the prestige and usefulness of such a woman. As documented by Littlefield (2007, 54), motherhood for slave women was rooted

How important is it for managers today to have a good understanding of Essay

How important is it for managers today to have a good understanding of cultural diversity in the workplace - Essay Example Organisations are now obliged to address the diversified needs of not only the international customer base but also of its diversified workforce. This project attempts to divulge the significance of understanding the role of cultural diversity by the managers of these multinational concerns. A literature review will be conducted to understand the concept of cultural diversity in a comprehensive manner. The literature related to management skill will be review from the view point of different theories and finding. The influence of diversified workforce on organisational culture will also be discussed. The main motto of literature review will be to develop a knowledge base on the basis of which the research will be conducted. Later on, both primary as well as secondary research will be conducted to verify the research question. The data collected from them will be analysed and finally the finding will be summarised to derive the conclusion of the research. Diversity is defined in dictionary as â€Å"the fact or quality of being diverse; difference. A point or respect in which things differ. Variety† (Hoffman & Summers, 2000, p.178). When a company diversifies its business, it enters different countries and soon it loses the geographical identity to acquire the tag of international or a global organisation. For example, companies like Nike, McDonald and HSBC etc operates in different parts of the world and possess a highly diversified workforce. The term diversified workforce indicates employees that comprise people belonging to different age, gender, culture, ethical values, religion and race (Asante, et al., 2008, p.216). A diversified workforce has people with different needs and requirements, which the organisations are required to cater. The employees’ beliefs, their value system, individual interests and needs are highly influenced by the culture to which they belong. These factors also affect the culture of the

Interpersonal Communication Report Essay Example | Topics and Well Written Essays - 500 words

Interpersonal Communication Report - Essay Example But the use of heavy slang can sometimes pose a difficulty in getting a message accurately. I have to admit that my answers were calculated and safe. They are my parents so I have to be respectful and my answers should be consistent with what they want to hear. If I really voice out my opinion, I am afraid that it will just end up in argument just like the previous converation we had. To parents who uses a different context, it seems to be difficult to get messages across from a teenagers’ point of view.I like being with my parents but sometimes our conversations makes me think a lot. It was a typical teenage conversation that is characterized by a light and jovial type of talk with few exchange of banters. We talked about who is attractive in school and what is â€Å"in† and what is â€Å"out†. The main challenge in this type of interaction is that it is so informal that sometimes the conversations has no substance to get messages across. This type of conversation can be fun especially to a teenager like me but getting substantial message across can be sometimes futile because it will just be ridiculed. My sister asked me to accompany her in the mall to buy something which I did. I thought it will be just a quick trip because she will just buy something that she needs. We ended up scouring the whole for a shop that I understand and she ended up buying something that was not really intended to be bought. We argued and I do not know how to make my sister understand that it is not necessary to tour the whole mall just to buy a pair of dress. Girls can sometimes difficult to understand and talk to. I don’t do well conversing with girls especially when they talk about shopping and other things that interests

Alienation Theme in Metamorphosis Essay Example | Topics and Well Written Essays - 1250 words

Alienation Theme in Metamorphosis - Essay Example One day Gregor wakes up to find that he is a large insect with tiny legs that could hardly carry him. His enormous efforts to wake up and catch the next train after missing the normal one do not bear fruit and he decides to sleep. However, he cannot sleep since he is used to sleep on the right side and apparently, he could not turn to that direction. His employer visits his house, which makes him open the door and reveal his real status to his parents and his employer who leaves the house quite scared. From this point, Gregor is isolated form the rest of his family and he keeps to his room where his sister feeds him. He adopts insect features and items are removed from his room to create him enough space to crawl and fly. Every day he eats less, which makes his body very weak. Gregor receives rejection when he leaves his room one last time after hearing sounds of violin form her sister playing for customers. He at last dies and his family celebrates his death (Kafka and Crick 29-44; Kafka web). This paper discusses Kafka theme of alienation through Gregor who is alienated from his job, family, social life, and himself. Alienation from Himself One morning, Gregor woke up transformed into large insect. As he lifted his head he could see his brown belly, slightly domed, and divided by arches into stiff sections. He was so huge such that the bedding was hardly able to cover it and seemed ready to slide off any moment. Gregor had many legs, which were quite feeble compared to the rest of the body and could hardly carry him (Kafka web). This meant that Gregor had ceased to act like a human being and his actions had to change to that of an insect. He is a new man who has to rediscover himself again in his new form and manage the normal life he was used to. Kafka uses transformation from a human being to an insect to depict the highest level of alienation of human beings from themselves. Outwardly, Gregor could fulfil all his obligations most of which included his pare nt’s debts that he had to pay for the next six years. Despite working for the last fifteen years, he is living in his parent’s apartments with no future of himself, no dreams of his own and this is bound to continue for the next coming years. The job is so demanding that he has to leave the house at wee hours of morning, which makes him have not enough sleep. He has no time for himself to relax and do other things that he loves doing (Kafka web). Alienation from his Job Despite working for his company for the last fifteen years, Gregor is not one of the valued employees. Kafka presents him as one devoted employee who has never failed to report on duty for all these years that he has worked for this company (Kafka web). His devotion is because of loneliness that rocks his life due to lack of a woman around him and intimacy he longs for. A picture of a woman on his wall tells it all. However, his transformation has changed things now that he is not a valuable employee. H is current transformation alienates him from reporting to his duties a thing that makes him at loggerheads with his employers. A visit by a chief clerk form the company Gregor is working for highlights further conditions surrounding his work place. Gregor’s boss thinks that he has missed from work because of some money entrusted to him, which is not the case. The chief clerk is a good intermediary

Tasks that can be performed by Self-Managed teams Essay Example for Free

Tasks that can be performed by Self-Managed teams Essay Many organizations are enabling self-managed teams so that the costs of hiring senior managers and supervisors to handle the team are removed. The organization should also be aware that only some and not all of the tasks could be performed using self-management means. All autonomous jobs and tasks can be performed on a self-management basis. As one member is able to acquire and develop skills, the other members would be learning through interactions. In this way the entire team would be competent with performing several tasks in the organizations. Some of the difficult tasks, which are highly unstable and need use of highly specialized skills, may be difficult to be performed by self-managed groups. It may also be difficult for temporary teams and committees to perform self-managed tasks. In the field of nursing and medicine, the management has to ensure that the self-managed teams are not temporary or transient teams that are working for some kind of temporary project. The skills that a self-managed team possesses should be permanent and involve the much routine work (Silverman, 1996). Roles and Responsibilities of Self-Managed teams A self-managed team would be having several roles and responsibilities in the organization. These roles and responsibilities have to be met at various stages of development of the team self-management development. The organization’s culture should be supported by the seven roles of the self-managed team. The seven roles of the self-managed team include: Ensure that the principles and values of the organization are constantly met – these include performance of several tasks such as demonstrating behavior, making decisions and communicating with the customers and suppliers keeping in mind the basic values and principles of the organization. The team member has to also demonstrate personal behavior and values that are in track with those of the organization when communicating with other team members. All conflicts and problems should be handled keeping in and the principles and the values of the organization. Ensure that the various team-related processes are handled in an effective manner – This is closely related to the organization’s culture. The team that is functional should ensure that the characteristics of teamwork and team spirit are incorporated in all work performed. The team should identity the functions and processes that are needed for the work to be performed. The roles, responsibilities, areas of helping one another, etc need to be performed. The team members should know the rules, regulations, decision-making approach, etc, so that any barriers cannot hamper the work. Between the members of the team a mutual trust and understanding should exist. Each member of the team should be available to take over the functions of his fellow team member in case the need is required. The team would also have to closely evaluate and monitor its performance so that any obstacles that may be existent with the workflow is identified and addressed appropriately. Ensure that the team environment is conducive to work Complete the team’s work – Each of the team members should be aware of the various responsibilities of the members and the various processes that are existent. A team member should identity his responsibility and should complete it. They should priorities the work based on the urgency and ensure that all tasks are completed on time. The team members should be able to gather in a group and discuss the tasks and responsibilities to be shared by each team member. They should also be aware of the resources necessary to complete the work, and the manner in which the resources have to be obtained. Each staff member has to schedule his/her work accordingly, and obtain all necessary information to complete the tasks efficiently. The staff members should be able to respond to the information presented to them. They should be able to understand the information and accordingly act. The staff should participate in the organization wide-system – This is a linkage-directed work to ensure that the staff members are able to participate in examining organization-wide processes. The staff members would have to perform certain standardization functions such as purchasing the logistics, paying the taxes, etc. They would also have to collect the data regarding the organization-wide data, analyses it and provide it to the appropriate authorities as and when required. The team members should also give the organization ideas of any changes required in the policies. The other activities in this purview include participation in training and workshops, assessments, appraisals, audits, etc. The staff should participate in the organization wide-strategies – This is a vision-directed work and ensures that the organization’s vision is kept in mind. A team member would have to gather data regarding the environment the organization is functioning in. An organization would be having several inherent strengths and weakens. This would relate to the external environment in the form of opportunities and strengths. The vision statement of the organization should consider the opportunities that are existent in the future, as it has to be realistic and able to function in the external environment. The self-managed team would be the first to interact with the patriot, and hence data regarding the external environment would be available on a first hand basis to the self-managed team. The team would be able to relate the data regrind the external environment to the internal capabilities. In the future, this data could be utilized by the organization whilst strategizing. The self-management teams should be involved in the management by attending meetings conducted for business plans. (Silverman, 1996 Moss, 1996).

The Impact Of Outsourcing On General Electric

The Impact Of Outsourcing On General Electric The report aims to highlight the impact outsourcing has had on General Electric Company. This paper analyzed GEs decision to have multiple outsourcing partnerships. The paper also discusses the impact that outsourcing will have on US economy in general. The first part of the paper reveals how outsourcing has led GE to be a cost efficient, productive and profitable company. The findings outlined factors such as the success of GE Real Estate in Mexico. It also outlined GEs successful steps in India in order to source products, services, and intellectual talent from India for its global businesses. The next section of the paper discusses GEs decision to have multiple outsourcing partnerships. It discusses the strategies of successful multiple outsourcing and consolidated it with GEs steps of outsourcing its businesses in different countries. In the last section the report elaborates different impact will outsourcing have on US economy. It contrasted the brighter side of outsourcing such as $100 worth of work sent abroad by U.S. companies; $130 to $145 will be reinvested in the U.S. economy. It also reveals the downside as it discusses how sending jobs abroad can affect American job market. 1.0 Introduction 1.1 Background General Electric is a diversified technology, media and financial services company focused on solving some of the worlds toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, the company serve customers in more than 100 countries and employ more than 327,000 people worldwide (General Electric Company, 2008). GE is made up of four businesses, each of which includes a number of units aligned for growth. Its four global research centers attract the worlds best technical minds. With more than 3,000 researchers working toward the next breakthrough, GE is positioned to continually innovate, invent and reinvent (General Electric Company, 2008). GE was founded by Thomas A. Edison, who established Edison Electric Light Company in 1878. In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company. GE is the only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896 (General Electric Company, 2008). Through outsourcing, which is defined as the procurement of products or services from sources that are external to the organization (Lankford Parsa, 1999), GE established itself in more than 100 countries. It was one of the largest foreign investors in Japan, had an enormous presence in Europe, employed more than 20,000 in India, and was widely present in Latin America (Vietor and Veytsman, 2007). 1.2 Aims The purpose of this report is to evaluate the impact that outsourcing has had on GE. It focuses on the American Outsourcing journal by Vietor and Veytsman (2007) in order to determine the impact that outsourcing will have on the US economy in general. 1.3 Scope The report investigates how outsourcing has impact on General Electric. The paper focuses to analyze the companys decision to have multiple outsourcing partnerships. It evaluates the firms operation in Asia, India, Latin America, and Europe and how it affected the organization performance metrics, cost-efficiency, productivity and profitability. The report also analyzes the impact that outsourcing will have on the US economy. It evaluates the impact that outsourcing will have on US workplace and also how outsourcing creates value in the US economy. 1.4 Methodology The report has used various books, e-journals and websites. 1.5 Assumption It is assumed that information collected for the purpose of the report is correct and relevant. 2.0 Discussion 2.1 Outsourcing Outsourcing is a fashionable way of solving some business problems and there are numerous reports of its increasing use. Initially used primarily for information technology, a wide variety of business process is now outsourced. The use of outsourcing is becoming more sophisticated; more organizations are outsourcing responsibility for business processes (Beaumont Sohal, 2004). For services, outsourcing usually involves the transfer of operational control to the suppliers. In the current environment of right-sizing, with a renewed focus on core business activities, companies can no longer assume that all organizational services must be provided and managed internally. Competitive advantage may be gained when products or services are produced more effectively and efficiently by outside suppliers. The advantages in outsourcing can be operational, strategic, or both. Operational advantages usually provide for short-term trouble avoidance, while strategic advantages offer long-term contr ibutions in maximizing opportunities (Lankford Parsa, 1999). It is estimated that every Fortune 500 company will consider outsourcing during this decade and that 20 percent of them will enter into a contract by the end of the decade. A variety of firms already exhibit this trend. General Electric Corporation has entered into a five-year, $500 million contract with Electronic Data Systems (EDS) to handle the corporations desktop computer procurement, service, and maintenance activities (Behara et al., 1995). A recent study indicates that outsourcing operations is the trend of the future and that organization already outsourcing activities are pleased with the results. A year-long international study by Arthur Andersen and The Economist Intelligence Unit finds that 93 percent of corporations interviewed plan to outsource in the next three years. Of those that already outsource, 91 percent are satisfied with the results (Struebing, 1996). The next section of the paper will evaluate th e impact that outsourcing has had on General Electric and analyze their decision to have multiple outsourcing partnerships. 2.2 Outsourcing Impact on GE Based on transaction cost theory, when a firm has already integrated its operational functions, the decision to outsource such functions to the market should be made if it is necessary to create or protect firm value. By outsourcing tasks to specialist organizations, firms may better focus on their most value-creating activities, thereby maximizing the potential effectiveness of those activities. In addition, as outsourcing increases, costs may decline, and investment in facilities, equipment, and manpower can be reduced (Jiang, Frazier Prater, 2006). Cost efficiency remains the primary explanation for outsourcing. Firms evaluate outsourcing to determine whether current operating costs can be reduced and if saved resources can be reinvested in more competitive processes (Jiang, Frazier Prater, 2006). For example GE Mexico was GEs largest operation outside of the United States. GE worked closely with the Mexican government to make sure that their target of 6% productivity growth was met. Some of GEs businesses in Mexico were clear winners. For instance, GEs Real Estate sector was a clear winner, with over $1 billion in financing in Mexico. GE had thus become Mexicos top real estate lender. Mexicos languages Spanish and English facilitated business relationships with GE USA. Technicians from America could visit Mexico to work on system and technological improvements. Doing so in China, entailed greater expense and significant language difficulties. Even for a phone call, China was 12 hours away (Vietor and Veytsman, 2007). By carefully choosing what to outsource, the buyer is able to focus its core strength, that is, the specific talent, skills and knowledge sets that differentiate the company from its competitors and give it an advantage in the eye of customers (Simchi-Levi, Kaminsky Simchi-Levi, 2003). For instance China exhibited a synergy between customers and markets in the areas of electronics, telecommunications, transportation, and healthcare, among others. Metalwork, small appliances, and tooling were other examples of successful sectors in GE China. The manufacturing sector alone claimed only 4,000 employees. The research and development, sourcing, and distribution presence in China was substantial. The firm also successfully led in innovation. In March 2004, for example, GE became the first foreign company to announce a subsidiary in China to engage in leasing (Vietor and Veytsman, 2007). On the other hand, Nike focuses on innovation, marketing, distribution and sales, not on manufacturing (Simchi-Levi, Kaminsky Simchi-Levi, 2003). Several studies seek to explain the relationship between productivity growth and outsourcing. Abraham and Taylor (1996) find that firms contract out services with the objectives of smoothing production cycles and benefiting from specialization. Ten Raa and Wolff (2001) find a positive association between the rate of outsourcing and productivity growth. Efficient firms allocate their resources to activities for which they enjoy comparative advantage. Other activities are increasingly outsourced. Contracting out production of goods and services to a firm with competitive advantages in terms of reliability, quality and cost is emphasized by Perry (1997). The outsourcing contract-granting firms assess the productivity of their in-house service functions and only undertake outsource actions if outside producers can provide comparable services better. The cost reductions due to differences in labor costs lead to outsourcing and positive changes in labor input, and output produced is altere d by profits and productivity growth. Outsourcing not only results in a shift of labor but also exacerbates the productivity differential between outsourcing contract granting firms and outsourcing contract receiving firms (Siegel and Griliches, 1992). Contracting out allows the firm to rely on management teams in other organizations to oversee tasks at which it is at a relative disadvantage, and to increase managerial attention and resource allocation to those tasks that it does best (Jiang, Frazier Prater, 2006). For example, GE India hired a vast pool of inexpensive, educated labor. The GE Indian program for training managers was instrumental in bringing up local talent. This strategy also allowed greater remote monitoring and maintenance in India. The vast majority of employees who filled the white-collar jobs had a university-level education. The Offshore Development Centers, which pioneered the idea of software sourcing in India, was largely responsible for promoting the educ ational zeal. The John F. Welch Technology Center was the most famous example, being the first and the largest multidisciplinary research facility in India. In addition to avoiding educational orientation, the Center provided critical technology, research, and development, and financing techniques. According to the Wall Street Journal 2005, that years conglomerate plan was to spend about $600 million on computer-software development from Indian companies where the firm estimated that similar products would cost it as much as $1.2 billion in the U.S. Also General Electric was successful in sourcing products, services, and intellectual talent from India for its global businesses. (Vietor and Veytsman, 2007). Traditionally, when business is booming, the temptation is to hire more staff, expand facilities, and bring more of the business in-house, where firms hope to better control costs. However, todays knowledge- and service-based economies offer innumerable opportunities for well-run companies to increase profits through outsourcing (Quinn, 1999). For instance, more than half of GEs revenue was from outside United States. Global revenue growth for 2007 was 22% (General Electric Company, 2008). For the calendar year 2003, GE Insurance, GE Commercial Finance, and GE Energy were the businesses with the greatest revenue: $26.2 billion, $20.8 billion, and $19.0 billion, respectively. In the year 2003, GE revenues reached $134.2 billion. International revenues contributed 45% of the total (Vietor and Veytsman, 2007). When used properly, outsourcing can boost profitability in many ways, including, the use of independent contractors provides employers with the flexibility to hire help only when they need it, for only as long as they need it. Outsourcing of staffing also allows firms to avoid having to provide costly benefits. And also, payroll as salaries are a large part of a businesss costs, particularly in service industries (Jiang, Frazier Prater, 2006). For example, General Electric was successful in sourcing products, services, and intellectual talent from India for its global businesses. In the sphere of intellectual sourcing, GE India presented very low costs, offering substantial savings in comparison with English speaking countries, while retaining high quality. GE India sales and sourcing had blossomed to $0.7 billion and $2.0 billion, respectively, in 2003. The current estimates predicted at least a 20% growth for both sales and sourcing by 2005 (Vietor and Veytsman, 2007). Another impact that outsourcing has that US-based multinationals are worried more about their bottom line than their social responsibilities and consider outsourcing to be unavoidable. GE, for instance, continues to stress the importance of low-cost centers in its global strategy and growth. GE also feels that globalization could lead to a loss of jobs in low-tech industries but that it will create jobs in high-tech ones too. According to the company, by centralizing its operations and leveraging low-cost operating centers in the US states of Virginia and North Carolina as well as in India and Ireland, GE has also developed sophisticated technological tools that enhance performance by automating key processes and reducing response times and process variations (Basu,2004). 2.3 Multiple outsourcing partnerships Outsourcing refers to the concept of looking for expertise to handle certain business functions outside the existing firm. The decision-making process that management must undergo when considering outsourcing, hinges on a make or buy philosophy. More variables are brought into play when management considers outsourcing a product or service that is currently being produced internally. Many more options exist currently than there were even a decade ago. In todays business environment it is now possible to outsource virtually any aspect of the business (Embleton Wright, 1998). One of the major challenges of outsourcing is moral hazard, as evidenced where businesses do not guard themselves prior to contract against their dependency on that supplier, and where, separately, they fail to appreciate the power which transfers to the outsource supplier in respect of their own business activities. One of the accepted ways to mitigate this is multiple outsourcing. This manifests itself normally in breaking down the outsourcing activities by separate function. By choosing to work with multiple outsource suppliers, enterprises can cut costs and foster competition between vendors, while taking advantage of vendor specialization and technical expertise (McDowall, 2005). The keys to successful outsourcing fall into three categories: Strategic analysis; Selecting the providers; and Managing the relationship (Embleton Wright, 1998). Strategic analysis Cost of providing the service: It is imperative to have a clear understanding of the type and the amount of all costs associated with the function to be outsourced. Labor, resultant level of service, impact of corporate culture and real estate costs such as space, utilities taxes and insurance all need to be considered (Embleton Wright, 1998). For instance, GE Mexico was GEs largest operation outside United States. As Mexico languages are Spanish and English, it facilitated the business relationship with GE USA. Technicians from United States could visit Mexico to work on system and technological improvements. It could have been more expensive and had language difficulties if the operation was done in China (Vietor and Veytsman, 2007). Quality level of service: It is also important to Develop a clear understanding and quantification of the type and the level of service being given with the current provider, then come to a clear understanding of the type and the level of service that will be acceptable in the future (Embleton Wright, 1998). For example GE India extended their business to aircraft engines, capital services, medical systems, industrial, systems, plastics, power systems, broadcasting, and others. In 2002, revenues and orders exceeded US $1 billion for GE India. The company employed over 22,000 people in the country. It was an intelligent move for GE to outsource their business in India as India offered them a vast pool of manpower with good language skill and education. Another reason to outsource their business in India GE India offered very low cost with substantial savings in comparison with English speaking countries while retaining high quality (Vietor and Veytsman, 2007). Quantify outsourcing goals: It is important to define goals explicitly. Without measurable goals, it will be impossible to quantify current results, or to define the level of service required in the future (Embleton Wright, 1998). For instance, in Mexico GEs target of 6% productivity growth was met as they closely worked with the Mexican government. By doing so, GEs Real Estate sector became a clear winner, with over $1 billion in financing in Mexico. GE had thus become Mexicos top real estate lender (Vietor and Veytsman, 2007). Selecting the provider After the decision to outsource has been reached, it is essential that the right vendor is chosen. Typically, outsourcing is a long-term relationship, which requires the supplier and the purchaser to work closely together. Often, additional services are required and should the agreement be terminated, the organization will require the suppliers co-operation until the outsourced service is settled elsewhere. Also there are many costs associated with changing an outsourcing vendor (Embleton Wright, 1998). For example in China GE entailed $1.5 billion in investments, employment of more than 12,000, and formation of more than a dozen joint ventures. These ventures thrived in high-technology industries which included medical systems, plastics, and lighting products, and in aircraft engine maintenance facilities, training, and component manufacturing. GE China also had formed a One GE strategic and practical approach. It involved four components. There was a sourcing component, in which G E would source parts and goods from domestic producers where cost savings exceeded 10%. The other three components were focused on Chinas own swelling markets. GE planned to manufacture products for China, develop distributional channels for selling, and build up its services for both product related services such as locomotive repairs and jet engine services, and eventually GE Capitals more sophisticated financial services (Vietor and Veytsman, 2007). Managing the relationship It is suggested that managing multiple outsourcing vendors can be a strain, but industry research indicates that multi-sourcing will be the prevailing outsourcing model. This is despite a very significant minority of enterprises being dissatisfied with their outsourcing relationships which formed inadequate governance models due to being poorly developed, under budgeted and having insufficient resources. Unfortunately, managing outsourcing relationships requires a whole new set of skills, requiring staff training and setting up a new management structure. None of this can be done with an immediacy which enterprises demand (McDowall, 2005). GE for instance, operated 30 plants including joint ventures, many of which were maquiladoras. In China, GE had invested in a dozen operations, mostly in Special Economic Areas. GE sold products in China and purchased products to supply its U.S. operations. In India, GE established its position in the software sector, taking advantage of the availa bility of human capital. All these operations could not have done without proper managerial relationship with the foreign buyers and suppliers and also the governments (Vietor and Veytsman, 2007). From the discussion above it can be said that GE has maintained proper step to do multiple outsourcing. Their decision to have multiple outsourcing partnerships was a major breakthrough in their businesses. Not on only in Mexico, China and India, GE spread their businesses successfully in all over the world including Canada where they have 10,000 employees, 15 major manufacturing locations and over 150 sales and service locations. They also have businesses in Southeast Asia, Australia, Europe and Middle East (General Electric Company, 2008). The next section of the report will focus on the impact outsourcing has on US economy in general. 2.4 Impact of outsourcing on US economy The mere mention of outsourcing and its impact on the U.S. is enough to elicit strong emotions on either side of the issue. Proponents argue that relocating low skill service jobs, like those in customer service or data entry, to foreign shores is necessary to ensure the productivity and competitiveness of the U.S. economy. Detractors say American companies are betraying their own workers and destroying the middle class, all in the name of the almighty dollar. But amid the debate over whether outsourcing is good or bad for the U.S., an important point has been largely ignored: Outsourcing is as much a regional issue as it is a national concern. Certain cities and areas are hit hard, while others remain largely unscathed (Elstrom, 2007). The important thing is to make a way of determining whether the gain is worth the pain. Suppose the net benefit to America is the degree to which the average employees purchasing power increases. The benefit really depends on four factors: the proportion of consumer expenses spent on potentially outsourced goods, the decrease in prices due to outsourcing, the proportion of American jobs that can be outsourced economically, and the wages of jobs that can be outsourced relative to the jobs that cannot. In the long term, American workers will be competing with labor elsewhere, pressuring American wages. Though prices should fall, its unclear whether these benefits will compensate Americans for lower wages. On the other hand, India and China will benefit from both higher wages and falling prices. Consequently, outsourcing will likely narrow Americas standard of living lead over other countries (Gibbons, 2004). An interesting corollary benefit sometimes mentioned is the benefit to the American economy. Indias National Association of Software and Services Companies commissioned a report by Evaluserve that stated that for every $100 worth of work sent abroad by U.S. companies, $130 to $145 will be reinvested in the U.S. economy. Cost savings are said to create value in the U.S. economy, and it is sometimes claimed that offshore outsourcing makes U.S. companies more globally competitive (Braun Consulting Group, 2004). Outsourcing results in higher production and lower costs, and consumers realize the benefit in lower prices and rates for goods and services. Manufacturing jobs, which commonly receive the most focus as candidates for outsourcing, are being lost not only in America but also in other countries due to emerging technologies that eliminate the need for manual labor. Furthermore, at the same time that manufacturing jobs are moving overseas, people in the United States are taking on ma nufacturing jobs from other countries. Efforts by the government to prevent outsourcing and to extend jobless benefits would negatively impact the free market economy and result in the loss of billions of dollars, say proponents of such initiatives (The Gale Group Inc, 2007). A recent survey by the McKinsey Global Institute has shown that for every dollar spent on outsourcing to India, the US economy gains at least $1.12. For example when medical reports are sent from the US to India for analysis it directly reduces the cost of health care. The cost saving thus achieved helps fuel new business opportunities, which in turn create more employment avenues. Health care is the primary concern for Americans today. Even if white-collar jobs were outsourced it would still make the US more productive, raising wages and increasing productivity. Just like the American free trade agreement created jobs in 1990s the upcoming outsourcing expansion will have a positive effect. If the US economy goes for job protection, it is heading towards job destruction. For instance had the US protected farm jobs a century ago, 70% of the Americans today would be tilling soil instead of 3%. The more the USA does to limit the import of services the more difficult it will become to ex port. The benefit of importing services is the same as importing goods. It increases productivity. Increased trade also forces domestic producers to become more productive. Improved productivity raises the standard of living, puts downward pressure on price and gives boost to profitability and wages (Chillibreeze Solutions Ltd, 2008). Outsourcing can also affects every part of business from manufacturing through to design, software development, financial control, logistics management, customer support and sales. Outsourcing has been praised as cost-effective, efficient, productive and strategic but also condemned as evil, money-grabbing, destructive, ruthless, exploiting the poor. A good example of this has been tensions over relocating call-centres and software support from countries like the UK and the US to India. More than 230,000 jobs are bringing lost each year in America as a result of outsourcing but many economists believe that a similar number of new jobs are being created at the same time. Research shows that some of the new economic activity generated in developing countries by outsourcing will generate new demand for goods and services in the country where the jobs have moved from (e.g. America). McKinsey Global Institute estimates that for every dollar US corporations spend on outsourcing to India, 3 3c gets 33c and the US economy benefits by $1.14. This is based on several assumptions: that 69% of displaced service workers will find new jobs within a year, and will end up earning 96% of their previous wages backed up by 1979-1999 data. However older workers may be out of work far longe, especially if their education is poor. Outsourcing saves money for corporations which mean lower costs for consumers and higher dividends for pensioners who own 75% of US and UK wealth which means more money to spend on other things such as local services and that produces new jobs (Global Change Ltd, 2008). 3.0 Conclusion Outsourcing otherwise known as subcontracting is the strategic use of resources outside the company to perform tasks that are usually handled internally by the company itself. In todays competitive world, successful outsourcing is a powerful tool for companies to generate value and gain competitive edge over rivals. The paper contrasted the impact of outsourcing has had on General Electric Company. The report critically evaluated the outsourcing steps made by GE which led their business to be cost efficient, productive and profitable. The paper also analyzes GEs decision to have multiple outsourcing partnerships. It demonstrated GEs successful multiple outsourcing strategy through strategic analysis, selection of providers and managing relationships. The report concluded by analyzing the impact outsourcing will have on US economy in general. It explained how outsourcing can affect the American job market also how it can input benefit in US economy. It revealed facts such as, every $1 00 worth of work sent abroad by U.S. companies, $130 to $145 will be reinvested in the U.S. economy. References: Books Journals Abraham, K. and Taylor, T. (1996), Firms use of outside contractors: theory and evidence, Journal of Labor Economics, Vol. 14, pp. 394-424. Beaumont, N. and Sohal, A. 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