Global Data Synchronisation for supply chain Case Study

Global Data Synchronisation for supply chain - Case Study Example This technology is significant in hastening a speedy transfer of information from the manufacturer to the retailer. In addition, this technology is important in terms of improving accuracy and security of data (Gopal & McMillan 2005, p.58). This technology is enhanced by the existence of a global network termed as the Global Data Synchronisation Network which is under the management of GS1. This organisation (GS1) is responsible globally in matters dealing with the design and implementing the global standards and solutions necessary to enhance the efficiency and also visibility with regard to supply and demand chains existing across verticals. On another note, this technology is necessary in the sense that, it enables trading partners to have access to product information in real time. In addition, this technology is necessary in a globalized market where obtaining latest information is critical for businesses. For instance, any change made in a firm’s database automatically reflects on other business partner’s database. This is made possible through the GS1 system that relies on the Global Trade Identification Number (Gopal & McMillan 2005, p.62). 2.1 The industries engaging in retail and consumer products recognizes the urgency to change and adopt a technology that would ensure system-system synchronisation with regard to products, price, the location, services and sharing of other information between business partners. In order to achieve this milestone of data synchronisation that involves many systems, standards, businesses data management and electronic synchronisation have emerged as solutions to problems related to data sharing among business partners. Further, this technology is seen as a means to enhance efficiency and hastening responsiveness within the supply chain. With regard to this technology, trading partners can share two forms of data. The first is neutral data that can be shared among many parties and is considered to

Organisational Change Models In Tesco

Organisational Change Models In Tesco Introduction: Tesco is one of the leading global retailers and the UKs biggest retailer as well as third largest grocery retailer in the world operating across Europe, North America and Asia. This business has been started by Jack Cohen in 1919 and he used to sell groceries from a stall in the East London. In 1929, the first Tesco store was opened in North London, Middlesex. Later on, it has expanded its business by a combination of acquisition of new stores, retail services by concerning the customers need and satisfaction. Now, it operates 4,331 stores throughout the world with more than 470,000 workers to meet the requirement of the modern market and it is not limited with its usual product range of grocery and general merchandise, it has diversified its business with electronic goods, clothing, banking and insurance services, telephone airtime and equipment. Tesco moves towards one stop shopping which means customers can get all their purchasing requirements from one place. Tesco has also expa nded its customer base through online with tesco.com and tesco.net website which attracts more than one million regular users. In this time, Tesco is one of the successful retailers in the world. Behind this progression, Tesco has changed accordingly time to time. In this context, it has undergone a technological change self checkout system. Tesco introduced this self check system as a trail on 5 March 2003 from East Dereham, Norfolk superstore. Later, it increases the no of self checkout system gradually from different store. From this self checkout system, customer allows to scan and pay for their shopping without any intervention from staff which helps to customer to save their shopping time. Tesco believes that it helps to increase the efficiency and speed up the shopping process as well as improve customer service. Although, the key aim of this change is to cut down the cost which allows the company to maximize the profit. This study will be examined how Tesco applied this change initiative and developed a change strategy, used change implementations models as well as analysed an organizational response to change and evaluated the impact of this particular change strategy. entifying a range of organisational change models or frame work. Organizational change is a deliberate attempt to improve organisational performance by changing one or more aspects of the organisation. Change may be successful when the appropriate change process is applied. For change process, there are a lots of change models and theories have been formulated by various experts and management gurus but for this particular change initiative of Tesco this study is identified some change models which are as follows. Lewins change model. Lewin developed three step model of planned change which explained how to initiate, manage, and stabilize the change process. This model defines three steps in the process of change management. Source: www.ic-pod.typepad.com Step 1- Unfreezing This step involves the organisation unfreezing existing attitudes and behaviour. Employees go through a process of unlearning old habits, old ideas and old perception how change will affect them. Step 2- Change This step involves a behavioural change. Employees modify their old ways and take on new ways of thinking about change how it should be implemented and how it can be positive rather than negative. Step 3- Refreezing The final step involves process of maintaining the momentum of change through locking in the changes, stabilising the situation, building relationships, consolidating the system, evaluation and support, preventing any going back to the old ways. Beckhard and harries model Organizational change occurs in a three stage cycle: present state, transition state and future state- Beckhard and Harris (1987). From above statement, we can conclude that this model focused on three state of change: present, transition and future. This model recommended that organizational change consists of an organization moving from a present state through transition to a desired future state. Present state refers to the current situation of an organization which contain organizations structure, process, people and external and internal environment. By analysing current situation organization can decide weather the organization wish to change or not. If the situation is stable, tranquil or satisfactory organization may be interested in change and identify new role, function or structure that it needs to adopt but it has not agreement or idea of a direction of change. Transition state consists to the structure, processes, people and environment of an organization as it undergoes change. The transition state is nearly turbulent and unsatisfactory level where existing structure and process that worked previous do not work well anymore and new structure and process deliberate to operate in future are not in place yet. Future state is the final destination of whole change process. It is the stage of that the structure process, people and environment are placed and an organizational change is completed. The organization achieved its desired future in this state. Change equation model Change equation model is based on mathematical presentation of change process which is developed by Gleicher and also called Gleichers change formula. In this model the multiplicative nature of change equation is: D ÃÆ'- V ÃÆ'- S > R Where, D= Dissatisfaction of current state quo V= Clarity of vision S= First step to be taken R= Resistance to change According to equation, change is only possible when the multiplication of D, V and S is excess the R. In other hand, the product of dissatisfaction (D) with the current situation, a vision (V) or positive picture of what is possible in the future and real, achievable first steps (S) people can take toward reaching the resistance to change (R). If any of these D, V or S is zero or near to zero the product of these three will zero or near to zero which means there is no resistance to. Applying a range of creative problem solving techniques to address change challenges Managing change is not an easy process and it is not always successful and arises with challenges. In terms of addressing those challenges (i. e. resistance to change), change manager can implement various creative problem solving techniques according to nature of change. Some of techniques which are implemented for this particular change process by Tesco are discussed below. Change path: Change path refers to the types of change which can be classified by extent of change required and speed of change that need to be undertaken for the require change outcome to delivered. There are four types of change revolutionary, evolutionary, adoption and reconstruction. The speed of change is about the way that change is implemented. It may be the gradually step by step change and one time big bang change. The context of change contains of transformation or alignment. Tesco has implemented this self checkout system step by step incrementally with time framework through evolutionary change to minimize resistance. It has brought this change as a trail in superstore later it gradually increases no of self checkout system in different stores. Evolutionary change Adoption change Revolutionary change Reconstruction changeTransformation Alignment Incremental Big bang Change start point: This is the where change initiated and developed. It may be the top to down or button to up approach. According to Food and Drink European.com on 6 March 2003, the strategic manager of Tesco Richard Dobb announced this self checkout system. As per this press release the change start point of this change is top down approach. In this change initial the readiness of change is low among the employee so the strategic manager decided to implement change initiative from top to down. Change style: A Change style is the management style of implementation of change. These change styles may be the collaborative, consultative, directive, coercive etc. These change styles can implement according to nature of change. To minimize the challenges (i. e. resistance by employees), Tesco has implemented collaboration style because this model focuses on extensive involvement of employees in terms of what is the change and how deliver the change needs. This approach works by creating pull and achieving commitments through getting people to invest in the change. The strategic manager involved employees in this change initiative through face to face meeting with focus groups. Change interventions: Change intervention includes technological intervention, political intervention cultural intervention and interpersonal intervention. Change roles: In order to manage this particular change Tesco formed specialist change team including strategic manager, human resource manager and IT director of Tesco and strategic manger Richard Dobb plays vital role in this change process. Identifying and justifying change solutions that link to organizational strategic plan. Basically, Tesco has been adopting growth strategy since its establishment time. It has a well established and consistent strategy for growth. According to corporate website of Tesco (www.tescoplc.com) its strategic plan is: The rationale for the strategy is to broaden the scope of business to enable it to deliver strong, sustainable long term growth by following customer into large expanding markets at home such as financial services, non- food and telecoms and new markets aboard, initially in Central Europe and Asia and more recently in the United States. Tesco is aiming to expand business aggressively. It wants to grow the core UK business, strength non food retailing, develop diversified retail service such as Tesco personal finance, telecoms and tesco.com. as well as putting community and environment in the centre point what it does and it wishes to stand as a successful international retailer. 2.1 Evaluating a range of change implementation models Implementing change is not an easy task because it is gone through various obstacles in order to get desire future destination. For implementing change initiative there are various change model such as Kotter change model, Action research model, Beer et al six step model, Balance score card, EFQM, IIP etc. However, this project examine Kotters change model for this self checkout change project. Kotters change model This model is developed by John Kotter and also known as 8 steps model of change. The key aspect of this model is change goes through a series of stages with considerable time framework. Skipping steps creates only the illusion of speed and never produces satisfactory results and making critical mistake in any phases can have a developing impact, slowing momentum and negating hard won again. Kotter describes the change process in 8 steps as follows. Create sense of urgency In this stage organization develops sense of urgency around need for change. Organization can feel need of change through examination of market and competitors situation. Furthermore, Organization identifies and discusses key opportunities and potential threats and develops the scenarios presenting what could be happen in the future. Form a power coalition team In this step, to cope with change efforts organization builds a team with enough power and authority and encourages team to work together. Create a clear vision In this step, organization generates a clear vision that is central to the change levers and develops strategies to execute that vision. Communicate the vision In this step, organization communicates the new change vision and strategies by using every possible ways and educates new behaviour using example of the guiding coalition team. Empower other to act on the vision This step describes about removing of barriers to change. Organization change the system and structure which challenges new vision and focus on risk bearing and new ideas, activities and actions. Create short-term wins Short terms wins are the foundation of what needs to be done in order to get long term change. In this step, Organization plans for visible performance improvements and creates those improvements. Furthermore, reward people who help to meet the targets. Consolidate improvements and producing still more change In this step organization analyzes what went right and what needs for improvement. To get further improvement organization revises systems, structures and policies that unsuitable for vision and employ encourage and develop employees who can contribute to implement vision. In addition it reinforces the change process with new project themes and change agents. Institutionalise the new approaches The final step focuses on assembling the achieved change into concrete shape. For this, organization builds alignment between new behaviour and corporate culture and develops means to ensure leadership development and succession to substitute key leaders of change. This model is easy to follow because this model breaks down the entire change process into small steps clearly and it focus on the acceptance and preparedness for change rather than change itself that helps to get easier transition. Another point is that it focuses on incremental change through step by step with requiring time framework and suitable for small organizational change too. Its only con is skipping the step results the complete change process fails. 2.2 Identifying the criteria to be select a change implementation model that supports organizational change. Tesco wanted to implement self checkout system in comparatively short time incrementally to minimise the resistance to change and to increase competitive power. In order to implement change initiative strategic manager has chosen Kotters change model because the change initiative has to implement relatively in short time incrementally. Moreover, this change initiative contains small technological change and this change model is appropriate for small change too. Tesco has implemented change initiative as follows. Create sense of urgency After analyzing competitor, Tesco felt that it has to increase competitive power and improve customer service to stand as a market leader. Consequently it looked new technology that can reduce cost and improve customer service because technology is developing rapidly. In 2002 Market and Spencer brought new technology self checkout system it was closely observed by Tesco. So Tesco decided to adopt self checkout system as a change project. Form a power coalition team It formed group including area manager, supervisor and representative of trade union with enough power and authority to make the change relevant. Create a clear vision The new vision of company is: Be competitive, provide the best customer service and incorporate technology. Communicate the vision To communicate vision, the team used companys website and cascaded message through area manager to supervisor and supervisor conducted meeting with other staff to talk about what the goals mean. Empower other to act on vision Change manger conduct education and training programme to teach the benefit of self check out system in order to overcome from obstacle. Special education session has been provided to employees who was creating obstacle to go ahead. Company announced rewards to staff from each store that helped to move forward to make the aims real. Create short-term wins After the succession of trail project, Tesco put report on website and articles have been published in news. Consolidate improvements and producing still more change Institutionalise the new approaches 3.1 Demonstrating the use of analytical tools to monitor the change progress and the effect of change The change affected the employees both ways positively and negatively in terms of experiencing change and changing behaviour and these change effects are analysed and monitored through survey, meeting, interviews and seminar. To find out perception of employees regarding effect of change the strategic manager decided to conduct a survey and it was found that most of employees are in fear of job loss because they though that self scan system replace their job. Some of were happy about that they get extra time to chat with customer. Some of were excited to learn new technology and they feel it is great opportunity for them. Some of were scared about the new technology what it really do. Some of were worried about changing position and work store because technology friendly colleagues were replaced their position. In order to study change related dysfunctions meetings were organized with area manager. It was conquered that people were in some pressure that they did not want to adopt this change because of job loss, changing position and work store, new technology. Interviews were conducted with the employees who expressed their reservations about the self checkout system. Change team promised to employees that no one lose job, it does not affect the position of any staff and they give effective training programme to be technology friendly. To measure the progress monthly seminar were conducted. During these seminars many staff showed great deal of eagerness as they were keen to learn about self checkout system and most of staff showed willingness to move forward with this change. 3.2 Assessing monitoring and measurement techniques to change with in organization 3.3 Analysis strategies to minimise adverse effect of change Change leader decided to follow Kotter and Schlesinger model in order to overcome resistance to change. This model contains six approach education and communication, participation and involvement, facilitation and support, negotiation and agreement, manipulation and co-option and explicit and implicit coercion. In the phase of education and communication, the change team communicated the benefits of self checkout system and its necessity to company. They convinced employees that self checkout system wont be the cause of any job loss and changing position and employees can get extra time to chat with customer by giving example of Market and Spencer and work store and they offered comprehensive training programme for all staff. After this step some of employees again abused to move further so the change leader decided to involve the team leader of resistance group in change team. However, some of employee who are relatively mature again created obstacle to go ahead. The change team conducted special training and counselling programme for these employees. The change team also promised that they will give monetary reward if the change is completed. Thus the change team have overcome resistance to change to move further. 4.1 Identifying the process to review the impact of the change. 4.2 Analysing the results of the impact of review To analyse the results of the impact of review there is two approaches quantitative and qualitative. Quantitative approach is phenomena which independently observable and measurable.

Brave New World Introduction Essay -- essays research papers fc

BRAVE NEW WORLD Introduction This novel was written by Aldous Huxley in 1932. It is a fable about a world state in the 7th century A.F. (after Ford), where social stability is based on a scientific caste system. Human beings, graded from highest intellectuals to lowest manual workers, hatched from incubators and brought up in communal nurseries, learn by methodical conditioning to accept they social destiny. The action of the story develops round Bernard Marx, and an unorthodox and therefore unhappy alpha- plus ( something had presumably gone wrong with his antenatal treatment), who vivits a new Mexican Reservetion and brings a savage back to London. The savage is at first fascinated by the New World, but finally revolted, and his argument with Mustafa Mond, world controller, demonstrate the incompability of individual freedom and a scientifically trouble- free society. In Brave New World Revisted 1958, Huxley reconsiders his prophecies and fears that some of this might be coming true much sooner than he thought. In Brave New World, he turned to the apologue. It was a descion that has profound consequences upon his novels and upon his critical reputation. In a 1961 interview Huxley explained his conception of Brave New World. "The new forces of technology , pharmaceutics, and social conditioning can iron modern humans into a kind of uniformity, if you were able to manipulate their genetic background. if you had a government unscrupulous enough you could do these things without any doubt.we are getting more and more into a position where these things can be achieved. And it is extremely important to realize this, and to take every possible precaution to see they shall be not achieved". One of the novel ´s chief rethorical strategies is to make all readers recognize what so few characters can comprehend : that preserving freedom and diversity is necessary to avoid suffering the repressions fostered by shallow ideas of progress. Huxley makes his ironic stance clear from the beginning by contrasting the book ´s title with the action of his first scene : counterpoint to the novel ´s opening at the central London Hatchering and Conditioning Center, a factory that creates on a conveyor belt the citizens for the Brave New World. BNW is one more memorable and successful for its overall portrayal of a society that for its delination of plot or psy... ...rminated by the State. The individuality of BNW is systematically stifled. A government bureau, the Predestinators, decides a prospective citizen ´s role in the hierarchy. Children are raised and conditioned by the state bureaucracy, not brought up by natural families. Respect belongs only to society as a whole. Citizens must not fall in love, marry or have their own kids. The individual ´s loyalty is owed to the state alone. BNW, then is centered around control and manipulation. Conclusion Those fears where the expectations of Aldous Huxley for a not too far future. His predictions got close of what is doing today science, clones... Those are predictions that are getting fulfilled as prophecies and we should warned all this, because who knows if one day some of us become Alphas and others Betas and so on... Bibliography: GRAN LAROUSE UNIVERSAL Barcelona.Ed. Plaza & Janà ©s,1992 Concise Companion to English Literature. Edited by Drabble and Jenny Stringer Revised Edition.Oxford University Press. New York, 1986 BAKER,PH. EMERSON,G., Et Al. Concise Companion of English Literature Biography. Modern Writers, 1914-1945. Vol. 6. Gale Research Inc. Detroit,MI.

Kellogg Book Essay

This book is intended to be a resource for members of the Kellogg School of Management Class of 2005 as they look for summer internships in the consulting industry (as well as for general management internships) for the summer of 2004. The book will also be useful to current first-year students during the fall of 2004 as they look for full-time postKellogg consulting jobs, as well as to the yet-to-be-admitted Kellogg Class of 2006 in their summer and full-time job searches. While we hope this document results in more Kellogg students reaching their employment goals, we are also confident that using this resource to prepare for case interviews will reduce the stress associated with the interviewing process. Additionally, students will find this document to be a useful reference for Kellogg’s core strategy course, MGMT 431, regardless of whether or not they plan to interview for consulting jobs. This introduction will provide an overview of the different sections of the book, recommend how it is to be used, and offer general thoughts of how this fits book in to the bigger picture. To this last point, the book is not intended to be the only resource that Kellogg students will need during the recruiting process for consulting. Rather, it is meant to be a central body of work that provides a complete and thorough introduction to the process, offers its reader a road map of the basic toolkit needed to succeed in these interviews, and also points him or her to other resources that may be helpful. Background on this book and acknowledgements can be found in Appendix A. 2004 Kellogg Consulting Club Case Book 2 Sections This book is divided into six sections, plus five appendices. Section I is this introduction, whose goals are stated above. Section II provides an overview of the case interviewing process and offers general advice on how to perform magnificently during the interviews. (It is adapted primarily from the Fleischmann, Fong, and Marciano article that is alluded to in Appendix A, and has been reorganized into seven sub-sections. ) Section III provides ten sample cases. The first seven of these are meant to be solved in a 30-to-45 minute interview; the first six contain slides. The last three cases are shorter and attempt to emulate the 10-to-15 minute case nterviews that are used by some consulting firms. After all of the practice cases, Section IV discusses fit interviewing, which is a typically smaller, but no less important, part of the overall process. Again, this section is adapted primarily from the earlier work of Fleischmann et. al. Section V provides one-page overviews of each of the eleven consulting firms that are currently planning to in terview Kellogg first-years for jobs during the summer of 2004. Of special interest in this section are the interview formats used by various companies. Students who are interviewing should use this information to customize their case practice and preparation, based on the formats used by the companies that are most of interest to them. Finally, Section VI provides some concluding thoughts and attempts to synthesize the key â€Å"take-away† points of the book. How To Use The Book We would like to conclude this introduction by orienting the reader as to how we envision this book being used. We have mentioned previously that it is not designed to be the only available or necessary resource on the subject. Students who attempt to use it in this way are doing themselves a disservice. Instead, it should be used in tandem with the many other 2004 Kellogg Consulting Club Case Book 3 resources that are available, such as case books from other business schools, Kellogg Career Management Center (CMC) counselors, students at Kellogg who have worked in consulting or are planning to, company representatives and literature, and the rest of the list of resources that is summarized in Appendix B. As for this book, sections I, II, IV, and VI are written to be read straight through (not necessarily in only one sitting). Section III provides practice cases that should be used or studied one at a time. Section V provides thumbnail data on companies that are interviewing at Kellogg, and is meant to be a quick reference for students who are interviewing in those firms. Particular attention should be placed on the various interview formats used by each different company. To maximize results, candidates should study cases that most closely mimic the ones that are given by the firms that they are planning to interview with and/or most want to work for. It is our hope that the combination of this book and of other available resources will maximize the effectiveness of Kellogg students during the winter quarter 2004 interviewing process. If anyone has any questions about the book or the process, they should feel free to directly contact me, either of the Associate Editors, Prof. Marciano, the Kellogg CMC, or any of the 2003-2004 Kellogg Consulting Club co-chairs1. We are all here to help Kellogg first-years get as many summer consulting job offers as possible. Best of luck in the process! Edwin Van Dusen Editor, 2004 Kellogg Consulting Club Case Book Evanston, Illinois December, 2003 1 The co-chairs are Leo Castro, Ami Fadia, Hanna Norfleet, Jason Greenwald, Brian Oxley, and Ojas Wadikvar, all from the Kellogg Class of 2004. 2004 Kellogg Consulting Club Case Book 4 II. How to Ace Case Interviews2 Overview of Section This section provides a complete and comprehensive overview of the case interview process and is probably the single most important section in the book, along with Section III on practice cases. It offers advice on how to best navigate the process, and is divided into seven sub-sections to make the material easier to understand and digest: 1. Sub-section one provides an overview of the case interviewing process. 2. Sub-section two discusses the use of frameworks, and the need to strike a balance between a structured approach and the pitfalls of an overly regimented analysis. 3. Sub-section three walks through a step-by-step illustration of a case interview and is in turn sub-divided into five parts. 4. Sub-section four reviews several common case situations and how to handle them. These include public math, how to get unstuck, and the infamous estimate questions. 5. Sub-section five reviews seven common types of cases that are frequently found in case interviews. 6. Sub-section six goes through some overall tips on how to handle the process. Please do not be put off by the â€Å"laundry list† format of this section, for it contains some important nuggets of advice and wisdom. 7. Finally, sub-section seven provides some concluding thoughts about the process. 2 As mentioned in the Introduction, the text in this section has been primarily adapted from the 2001 Fleischmann, Fong, and Marciano article, although some of the content and wording are new. They, and we, would like to give special thanks to Jason Moss and Chris Riley (both members of the Kellogg Class of 2001) for their invaluable contributions to the initial document, from which this section is primarily adapted. 2004 Kellogg Consulting Club Case Book 5 We have endeavored to distill the most important aspects of the case interview process into this section while keeping it to a manageable length. Obviously, since entire books have been written on this subject, it was not possible for us to include every detail or every opinion on the matter. Students should probably begin by reading this section to get the major points, and then can consult some of the additional resources listed in Appendix B if they feel that they still need to get more depth and detail. Sub-Section One of Seven – Overview of Case Interviews This section will describe the format and structure of case interviews, discuss the various types of cases that one may encounter, and provide practical tips and advice on enhancing one’s chances for success. Fit interviews will be discussed in Section IV later in this book. The consulting interview process may be unlike any series of interviews that a person has been through before Kellogg. While each consulting firm has its own distinct style and method of interviewing, virtually all screen candidates using a combination of â€Å"fit† and â€Å"case† interviews. Understanding and being prepared for both of these types of interviews improves one’s chances of obtaining a position in the field and also reduces the angst associated with the process. The framework is simply a tool to help you structure your response, so do not get too hung up here and waste valuable time that you could be using to advance the discussion. Your initial framework should be a broad sketch, not a detailed blueprint, of how you intend to go about solving the case problem. The details of your analysis should evolve interactively with the interviewer as you progress through the interview. Based on the framework you have developed, you should be able to identify several possible paths towards addressing the case issue. For example, consider a case about Firm X whose profits declined last year. Firm X’s reduced profits could be due to sagging revenues, rising costs, or both. Given that your interview time is limited, it is important to prioritize the issues you will investigate in the case. Investigate the most likely solution to the problem first, followed by the second most likely, and so on. The initial information that you have been given 2004 Kellogg Consulting Club Case Book 14 may steer you towards a particular path. Take cues (subtle or overt) from your interviewer about which paths hold the most merit. For example, if you were told that Firm X recently altered its product mix, you might want to start by examining the prices of its various products. Based on the information you have received, and the framework you have developed, you should formulate an initial hypothesis about the case problem you are evaluating. In the parlance of case interviews, a hypothesis is what you believe to be the central issue of the case, or the solution to it. With regard to Firm X, your initial hypothesis could be that the root cause of its declining profits is that it is selling relatively more low price/low margin products than it had in the past. You may not be given enough information at the onset of a case to develop a reasonable hypothesis from the start. If that happens, progress through your framework, elicit information from the interviewer, and develop a hypothesis as soon as you can. If your initial hypothesis turns out to be wrong, which is often the case, try another one. It is not an automatic â€Å"ding† to not guess the answer correctly on the first try. But it is a likely â€Å"ding† to give up or to lose sight of the main issue, which is to eventually solve the client’s problem. Some firms are more or less receptive to hearing an interviewee, very early on, state a hypothesis for analysis. The key lesson here is to know the firms that you are interviewing with. If you are interviewing with a firm that conducts its cases/engagements with an â€Å"Answer First† approach, then you should probably state a hypothesis early and then relate findings to it as the case progresses: â€Å"this supports my initial hypothesis†¦Ã¢â‚¬  or â€Å"that seems to refute my initial belief, my revised working hypothesis is now†¦Ã¢â‚¬ . Other firms may conduct their work by doing much more detailed data collection before forming a hypothesis. In this case, strive to form a hypothesis, but hold back on stating it until you have collected more data: â€Å"OK, I think I now have enough information to form a hypothesis – based on facts A, B and C, it looks like X might 2004 Kellogg Consulting Club Case Book 15 be happening. Here’s how I would evaluate whether X is truly going on†¦Ã¢â‚¬  With these firms, you may look like you’re jumping to conclusions if your hypothesis isn’t fact-based. Ask members of the firm about their firm’s preference prior to your interview (that’s what all those cocktail receptions are for). Step Three of Five – Articulation After you have developed your analytical framework, prioritized potential solution paths, and formulated your initial hypothesis, the next step is to articulate them to the interviewer. In the case of Firm X, it might go something like this: â€Å"Given that Firm X has experienced a decline in profitability, I am going to begin my evaluation by investigating the various elements that make up profit, namely revenues and costs (framework). Since you mentioned that Firm X has seen its product mix change over the past year, I will begin by analyzing the firm’s revenues, focusing first on pricing (prioritization). It could be that a decline in Firm X’s average price is causing its profits to suffer (hypothesis). If that turns out not to be the case, then I will look at changes in the company’s cost structure. † It is critical in case interviews to demonstrate a structured, logical, and thorough thought process. If you do not verbalize your thought process to the interviewer, (s)he will not be able to evaluate your performance. In addition to talking through your thought process, you may find it beneficial to sketch out your analysis framework on your note pad. Writing down your framework will help you to organize your thoughts, and to regain focus if you get stuck or your analysis becomes very complicated. Just as importantly, an illustrated framework shows the interviewer that you are thinking in a structured manner, and makes it easier for him or her to guide you. Many successful consulting interviewees extol the importance of â€Å"paper management† in case interviews. Interviewers often encourage candidates to take notes, and some even keep 2004 Kellogg Consulting Club Case Book 16 those notes to help remember the path that the interviewee took during his or her case. Whether or not this happens to you, your notepad is an excellent communications medium during your interview. Consultants are generally graphical thinkers – even if they didn’t start this way, they now communicate in slides, charts, and graphs. Speak their language – sketch out your thoughts on your paper, write large, and show the interviewer what you are doing. It is not uncommon for an interviewer to look under an interviewee’s shoulder onto his or her notepad, and comment on it and/or ask questions about its contents. For example, â€Å"I see from your notes that you have come up with five reasons why Firm A should acquire Firm B, and the first one is distribution synergies. What do you mean by that? † Draw out your framework so that the interviewer can see where you’re going, and steer you accordingly. Many interviewees divide their paper into three sections. In the first section, they note facts about the situation (both those given in the initial situation explanation as well as facts uncovered through questions). In section two, analysis is performed, and in section three key findings/conclusions are noted (this section is especially helpful when the candidate is asked to â€Å"sum up† at the close of the case). Note: this does not have to all occur on the same page – feel free to use multiple sheets of paper; the clearer your actions are to the interviewer, the better. Be as graphical and as structured as possible whenever you seek to convey concepts like organizational structure or whenever you do quantitative analysis. Quantitative analysis, in particular, should be laid out in rows and columns â€Å"Excel-style† (ideally with the equation noted above the columns) so that interviewers can follow your calculations. Doing fancy math in your head is great, but it’s more important to illustrate to the interviewer how you are coming to your numbers than to wow them with calculation speed. Your arithmetic may be correct, but your equation may be missing a critical variable. Drawing out your thoughts helps the interviewer 2004 Kellogg Consulting Club Case Book 17 identify this and correct your course. This is far preferable to leaving the interviewer wondering why your number does not match the number that is given in the case solutions. To err is human, but to do so in a way that leaves the interviewer wondering about whether the problem was with your arithmetic or your thought process is likely to prove fatal. Step Four of Five – Analysis: Ask Questions, Gather Information, and Test Hypotheses Having articulated your framework and initial hypothesis, you are ready to move into the analysis phase, which should be the bulk of the interview. In the analysis phase, you should ask questions, synthesize the information provided, and draw conclusions based on the facts. By asking questions and bringing to light new information, you will be able to determine whether your initial hypothesis was valid or invalid. If the data proves your hypothesis to be invalid, systematically follow your framework and progress to the issue with the next highest priority. In addition, based on new information you receive, develop a new hypothesis as soon as possible. For example: â€Å"Based on what I’ve learned so far, it appears as though Firm X’s product mix and revenues are not the most important cause of its declining profitability. So now I’ll move on to investigate the firm’s costs (transition to next branch of the framework). You mentioned that Firm X recently signed a new agreement with its unions, so I’ll start by examining its labor costs. It could be that an unfavorable union contract has inflated the firm’s labor expenses and negatively impacted its profits (new hypothesis). † Asking questions, collecting information, and developing and testing hypotheses is an iterative process, and constitutes a good case interview. As you receive answers to your inquiries, you should be able to hone in on the solution to the problem, and the interviewer may point you in the right direction. Even if all of your hypotheses are ultimately proved invalid, if 2004 Kellogg Consulting Club Case Book 18 you have solicited relevant facts and drawn conclusions in a structured, logical manner, you will have done well. Do not forget that it is important to verbalize your thought process throughout the entire interview. Avoid long periods of silence — the interviewer is attempting to evaluate how you think, and mute introspection precludes this. When doing calculations, tell the interviewer everything that you’re doing. This maximizes the interviewer’s ability to coach you and illustrates your thought process. It takes practice to be able to do this with aplomb, but it is a skill well worth developing. Asking questions is a fundamental part of the process, but remember to do so within the context of your framework, as opposed to firing off questions in no particular order. As you work through the case, it is a good idea to verbally summarize where you are, what you have learned, what the information means in diagnosing the problem, and where you are headed next. Summarizing can also be a useful technique to buy yourself time to think if you become stuck. Take caution not to summarize too frequently, however, because it takes away from the time that you should be using to analyze the case issue. Step Five of Five – Summary and Recommendation When you feel you have covered all the bases in your analysis, or when you have run out of time, end by summarizing the situation and providing a recommendation. If at all possible, always end your interviews with a succinct recommendation. Try not to recap the path of analysis that you have just performed. Instead, draw on key facts to give a clear answer to the central question of the case. For example, â€Å"I do not recommend that the firm enter the market, given that the industry in question is characterized by low barriers to entry, intense rivalry, and significant supplier power† (all of which you discovered through your analysis). 2004 Kellogg Consulting Club Case Book 19 You might also add next steps or additional considerations, as appropriate, to make your analysis more balanced and thorough. For example, â€Å"Based on the discussion that we had today, I would not recommend at this point that the firm enter the market. However, I would also want to know more about the regulatory trends in the market, and about the industry’s distribution channel mix, before making a final decision in a real situation. † Remember, cases are usually complex. If you imply to the interviewer that you have completely addressed the issue in 30 to 45 minutes, you may be perceived as short-sighted or arrogant. It’s much better to state what you’ve found and can reasonably infer, and then identify the areas that you’d like to further penetrate (if given more time) and the assumptions that you’ve made that you think your conclusions are most sensitive to. An important point to keep in mind is that even if you are dead wrong, if you have approached the problem in a logical, structured, and thorough manner, you have done well. You will likely encounter the â€Å"elevator test† at the end of some of your interviews. It typically goes something like this, â€Å"We’re out of time. Sum this up in 30 seconds so I can tell the client our major findings. The purpose of this exercise is to see whether you can identify the most important elements of the case, distill complex issues into concise, easily understandable terms, and maintain your poise when thrust into a stressful situation.

The Heckscher-Ohlin Model

1. The Heckscher-Ohlin model The Heckscher-Ohlin model is a mathematical model of the international trade and its balance. It is established upon the theory of David Ricardo for the competitive advantage and it strives to predict the arrangements of the international trade and production, which are based on the capacity of a given country to trade. Its essence consist in the statement that the countries that produce, will be exporting the goods, which manufacturing use their plentful and cost-competitive factors and will import goods that use the scarce factors of the country. Here we are talking about the factors of production, which are the land, labour and capital. Their abundance or their lack defines in which products the country has a competitive advantage. Meaning that they have advantage for producing those goods, for which the necessary factors and inputs are abundant in the country, therefore it is cheaper to produce them locally and export them instead of importing them. We can give the example of country like Belgium – here the labor and the land factors are not abundant, therefore the goods that require for the production those factors will be imported, because then it will be more cost effective. And vice-versa, because in Belgium there are a lot of engineers, technicians and it is rather well technologically developed country, it will be more advantageous to export goods, which require for their production those abundant factors – for ex. computers, IT etc. 2. Criticism on the H-O model & Leontief Paradox There is much criticism upon that model; therefore I’m going to state the most important of it here: * The little predictive power of that model, which was a critic by Bernstein and Weinstein, who claimed that the H-O model and its factor endowments of each country are not a reliable forecast. * The identical production function – the H-O model postulate that the production functions are corresponding for all the countries that are involved in the international trade. But it’s an unrealistic statement, because even between the most developed countries the competition is determined from various factors like technology etc. * In the H-O model, the capital is by definition assumed as consistent, identical and transferable to any form, since the capital goods may have many forms. There is no explanation how the capital is measured. So all this leads to a controversy around the concept of homogenous capital. * The unemployment factor is excluded from the model, which makes it really unrealistic. * The assumption that all firms are identical, because all the countries have the same production function is another weak point of the model. * The H-O model was supported by politicians, because it gave them an excuse for restriction upon the immigration lows at that time. * Probably the most significant criticism is called the Leontief Paradox. Mr. Wassily Leontief conducted an econometric test in 1954 of the implication of the H-O model in the US. And he found out that nevertheless the US was a country rich on capital it still was exporting mostly goods for the production of which the labor factor was decisive or ‘labor intensive goods’. And they were importing products, produced in countries with abundant capital as well or ‘capital intensive goods’. This paradox proves that the H-O model is not taking into account all of the necessary factors in order to be more accurate and applicable to any given country. 3. Response by H-O The main response was that the model has been further developed and extended in order for it to be more realistic. Thus by taking into consideration new features, factors and variables in the international trade (like tariffs for ex.) the predictive power of the model has been increased. The three scientists that contributed the most for those ameliorations are Paul Samuelson, Ronald Jones, and Jaroslav Vanek.