McDonalds Future Policies and Strategies

McDonalds Future Policies and Strategies Introduction In this assignment we will discuss the business, its environment, factors affecting the environment, current market conditions and the affect of the current market on the the business. Identify the stakeholders of the company, strategy, policies used by the business that helps them to gain competitive edge over its customers. Strategic Review Strategic review helps to analyse and review the strategies used by the business for survival and sustainability. It helps us to understand the decisions taken by the management to increase the sales, market share and hence maximising profit. The Company I have chosen for this assignment is McDonalds which market leader in fast food industry is. In this assignment we will discuss McDonalds stakeholder and their current market position of McDonalds. We will also discuss the environment, strengths and the weaknesses along with the strategies used by McDonalds which affected the position of McDonalds either to increase market share or maximising profit. Task 1.1 Identify the importance of environmental factors affecting the organization or sector. We will discuss the factors affecting McDonalds. I have chosen Mcdonalds as a company having worked for McDonalds for about Four years make me understand the culture, structure and the environmental factors that affect the organisation directly and indirectly.Mcdonlads follow the plan to Win and being the Market Leader in the fast food industry with having restaurant in more than 119 countries with more than 31,000 restaurants in operation. The factors that affect the organisation are the political, social, economic, technological and legal .Apart from those Factors like Globalisation, Diversity and Ethics affect the organisation. Globalisation: Globalisation helps in developing a closer contact between different parts of the world, and have increased the possibility of personal exchange, mutual understanding and friendship among world citizens. Corporations are expanding their businesses to world market. Corporations go global for the Survival and sustainabilty.Mcdonalds are operating in more than 119 countries with over 31,000 restaurants in operation. Diversity : McDonalds s follow diversity by employing local people and having local suppliers for the restaurants. It also have the different menu for different countries and follow the culture of the countries. Like not serving beef products in India and having different Entries for ladies in Arab Countries respecting the cultural and religious beliefs of people. Global marketing decisions are no different than those made domestically but the decisions are unique to each country (Sister Sister, 2005). McDonalds realises diversity as an asset that enhances in the profitability of organisation. Diversity directly reflects the interpersonal relationships. Ethics: McDonalds Promote the RMHC(Ronald McDonald House Charity ) which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. McDonalds sponsor Olympic athletes. Ronald McDonalds Houses are located in more than 259 communities worldwide and support Mobile care programs which offer cost effective medical,dental and educational services to children.In addition to their community involvement, McDonalds has a long-standing commitment to environmental protection. Restaurants around the world have innovative programs for recycling, resource conservation, and waste reduction. Mcdonalds also help the African farmers by buying fairtrade coffee beans and also the Rainforest Alliances. Task 1.2 Analyze the needs and expectations of all stakeholders involved. McDonalds is a people business-Ray Kroc Person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organizations actions, objectives, and policies. (Businessdictionary, 2010) Customers: McDonalds provide its customer with the nutritional value of the food and tend to innovate new food for its customers and have loyalty options of drink to retain its customers .It also provide healthy food options like salads, water,delli roll and fruits . Franchise holders (franchisees) Franchisees are crucial to McDonalds success; they deliver its brand promise straight to the customer. Nationwide, approximately 85percent of their restaurants are franchised. The sites for the restaurants and either own or leases the land and buildings. The franchisee then, in turn, leases the building from McDonalds by paying a percentage of sales. The franchisee also purchases the cooking equipment, furniture, play land and signage to complete the fit out of the restaurant. Shared investment and shared risk helps to achieve sustainable growth. Employees: Employees are the internal stakeholders and directly affect the working of organisation. McDonalds provide national qualification to its employees and helps to gain work experience. Mcdonalds follow equal opportunities for its employees. Suppliers: McDonalds supply chain benefits the countries economy. As Mcdonalds lay emphasize on the local suppliers. But the suppliers have to maintain the promise of quality for the customer, the ation, including rigorous quality control in all areas of operations-including animal welfare, health and safety, handling procedures and cleanliness. By providing local supplies Mcdonalds generate employment in the countries and supporting economies of thes to be company. This also enhances the growth perspectives of the countries as New Zealand exports beef to United States for beef patties. Community groups: RMHC(Ronald McDonald House Charity ) which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. McDonalds sponsor Olympic athletes. Ronald McDonald Houses are located in more than 259 communities worldwide and support Mobile care programs which offer cost effective medical, dental and educational services to children. In addition to their community involvement, McDonalds has a long-standing commitment to environmental protection. Restaurants around the world have innovative programs for recycling, resource conservation, and waste reduction. Mcdonalds also help the African farmers by buying fair-trade coffee beans and also the rainforest alliances. It also is promoting the national Olympics in 2012 . Shareholders: According to the Annual report 2010 Mcdonalds have increased it growth 3.8% and the earning per share of the shareholders have increased by 9% and also the total dividend distributed to shareholders between 2007 -2009 amounted to 16.6 million dollars. Task 1.3 Conclude the major changes taking place in the environment that will affect the strategy. Economy is going through the downturn .It is very tough for companies to survive and sustain in the market. Every organisation follow the internal and external environment to plan any strategy .Profit Maximisation is the main aim of the organisation apart from organisations do plan for the environmental and the social factors that help in achieving the objectives and goals of the organisation. PESTLE Analysis: Political factors: Company is controlled by the policies and regulation of operations .Specific market focus on different areas of concern such as health, worker protection, and environment .McDonalds while operating in India will follow the rules and regulations of India relating to the tax, trade laws and the rights. For example selling of the meat is said to be offensive relating to Hindu community particularly that of beef. Economic factors:- Economic factors are those factors where in the economy of the business is affected it has a major impact on the business these factors such as interest rate , exchange rates could have a devastating effect on the business special when it a multinational business. McDonalds will have to charge customer in the local currency than the standard currency and the price should be within the purchasing power of individual. Social Factors: Social factors are factors originated generally due to the internal stakeholders in the organization, their health and safety. The culture in the organization can have varied effects on the output of the business and the cost of the company is lot more affected due social factors. Technological factors: McDonalds use television advert for the for the marketing purpose. Celebrities and animated depictions are used as an endorsement for I m loving it campaign. McDonalds use inventory system and the management of the value chain allow the easy payment foe their suppliers and other vendor which an individual stores in respective markets deal with. Legal Factors: McDonalds is proving nutritional information of the food on the packaging and the website of McDonalds. McDonalds is using fruits, oatmeal, salad, water and orange juice to promote healthy food habits and fight the obesity. In the Muslim countries McDonalds is using the concept of Halal Food for the target Customers. Other legal concepts like tax obligations, employment standards, and quality requirements are only a few of important elements on which the company has to take into consideration. Otherwise, smooth operations shall be hard to achieve. Environment: McDonalds is using the bin it logo to promote clean society so that the rubbish packaging should not be dumped by the roadside. It is also promoting going green to save energy and reducing wastage to save the environment and showing their responsibilities towards society. Through careful planning and working with The carbon rust we ensure that we use the most efficient equipment for our restaurants according to the technology available(Katie Saunders ,Environmental Manager, McDonalds UK) Mcdonalds is also using contributing in the environmental impact by reducing the energy consumption in restaurants, miniming the use of water in restaurants like using waterless urinals in the restaurants. Mcdonalds is trying to save the environment by reducing waste and reducing the size of the trayliners by 10cm which results in 84 tonnes of paper saving. It is also recycling the used cooking oil for the bio diesel. (McDonalds, 2010) Balance Scorecard Approach: The Balance Scorecard method was given by Kaplan and Norton .It is a strategic approach and the performance management system that enables organisations to translate companys vision and strategy into implementation and take into consideration four perspectives: Financial Perspectives: From the Financial Perspectives Mcdonalds like to focus on the Profitability and sales. For Increasing the sales employees are trained to sell large meals. For the Profitability emphases is laid on the waste reduction and drive thru which is having trained staff to do the job properly. Hand held are used to less the queues on the drive thru as it lessen customer order processing times. Customer Perspectives: Mcdonalds relate to Quality ,Service and value to customers. It target to serve front counter customer in 90 secs and the drive thru customers in 180 sec.Speed and quality is of utmost important to customers. Therefore, customers, like to friendly,fast and quality service every time.New Product like snack wrap, tasty and Great Taste of America is been brought to menu after sometime to retain the customers. Business Process Perspective: From the Business processes Mcdonalds is getting to expand its business by getting global. Also Mcdonalds is adding new product line to its business by opening McCaffes to expand its business. Learning and Growth Perspective: Employee Commitment is very important in the fast food industry. Employee turnover affect the business as retaining the employees is cost effective as recruiting and training is costly. McDonalds provide qualification to its managers from the hamburger university.(maxipedia,2010) Value chain Analysis: Firm Infrastructure: Brand Recognition: Mcdonalds is globally recognised brand. No.1 in Retail food industry. McDonalds is the market leader and exists at number no. 1 in fast food industry. Franchising: About 85% of the restaurants are franchised. Company Image: Company hold a strong image in the community because of the fresh and universal taste. Financial strength: Inspite of the economic downturn Mcdonalds annual sales increased by 3.8 % in 2009. Human Resources: Job Applications: Mcdonalds follow the online application system for recruitment. 2nd largest U.S employer Technology: Just in time order Delivery: Mcdonalds use the refrigerated trucks for delivery as the temperature of the frozen meat patties should not be less than -18 to -22 degrees to be served when cooking. Procurement: Sustainable packaging: Mcdonalds have reduced the size of tray liner and also use the packaging that can be recycled in their concern to protect environment. Renewable resources: 82% of the packing material is from renewable resources. Oil recycling for the bio diesel. Quality Control: For delivery freight truck inspections are inspected and random audits take place for quality control. Inbound Logistics: Operations: Corp. Guidelines for franchisees. Outbound Logistics: Distributor agreement Marketing and Sales: Product: Health and wellness campaign and product offering Price: Providing value to customer e.g. Pound menu, party pack for kids. Promotion: Coca cola endorsement Sponsor of Olympics and feeding the athletes .Mcdonalds is sponsoring Olympics 2012 along with coca cola and Cadbury. Service : Friendly customer service. Clean Environment for customers. Fast food service target to serve front counter customer in 90 sec and drive thru customer in 180 seconds. { Adopted from Harbott.com,2010} Task 2.2 Summarize the position of the organization in its current market. According to The Times In spite of the economy downturn McDonalds is still pushing ahead with the discounting menu. Figures shown by The Times state that McDonald position in the current market is unaffected by the economy downturn .It is following the strategy of the discounting  £or $ 1 menu making it to increase its profit. It has reported the increased sale as 4.2% of the global rise McDonalds share rose from.38 % in early trading of 1950 to  £70.61 in 2010.Mcdonalds is following a low prices strategies on fries,burgers.drinks and the sale of McCafe drinks.(Frean,2010) Mcdonalds is holding strong position in market as it holds more than 32,000 restaurant in operation in more than 117 countries and it has also added to the new product line McCaffes in 2008 providing cappuccinos and frappacinos. And other drinks. Working towards the environments and Children welfare and the organic food and also feeding the Olympics allows them to fulfil their responibilty towards society. Mcdonalds have planned to open around 1,000 more store in 2010 and invest in $2.4 billion to enhance the brand. Mcdonalds have planned to Reimage the exterior and interior of the existing stores to improve seating, lighting and dà ©cor and by doubling drive thru stations to improve speed and convenience.(Yousuf,2009) Task 2.3 Evaluate the competitive strengths and weaknesses of the organizations current strategies. Strengths Weaknesses Opportunity Threats 1) Glo Globalization: 32,000 restaurants serving in more than 117 countr117 countries. 1) Advertisement techniques that target children 1) Innovation: Continued adaptation such as adding on new menu such as snack wrap and great taste of Amaerica to retain the existing customers. 1) Current world economic standing: the companys revenue streams are diversified, but depending on the the length of this recession, they will inevitably be negatively impacted by the trickle down effect. 2) Active Childrens Charity: The Ronald McDonald House helping families with children in hospital. 2) Consumers use disposable income to purchase fast food meals so when the budget it treatened, consumers redirect these funds 2) Conservation: Researching green energies and green packaging solutions Recycling of the waste oil to form Biodiesel.. Using Water less urinals in store to save water consumption. 2) More Casual Dining Restaurants increasing their burger offering and decreasing the price. 3) Adjusted Ingredients and product offerings to comply with upgraded health standards deemed necessary by the USDA:Mcdonalds provide the universal taste in its menu. 3) Public perception: McDonalds has been impacted by negative press like the documentary Supersize Me by Morgan Spurlock in which he contributed our societies obesity to McDonalds and other fast food chains. 3) Exploration: Create new product offerings. Continue to use technology to influence revenue strategy: possibly use text messages to deliver specials offers to individuals who sign up for such services. 3) Public Health Crisis.: people are more foccussed on the dietry needs. 4) Earns revenue not merely by fast food sales, but also as a property investor, a franchiser of restaurants.: More than 85% of the restaurants are franchised throughout the world. Mcdonalds using low price strategy Or the  £1 menu which led t increase in sales by 4.2 % globally in 2010. Task 3.1 Use a range of tools and models to develop strategic options. Turnaround Strategy: Turn around Strategy is used by underperforming companies to normal in terms of acceptance levels of profitability, solvency, liquidity and cash flow. Therefore turnaround strategy is used to manage, stabilise, fund and fix the underperforming and distressed companies. The components of the Turnaround strategies are: Managing the turnaround: Managing in terms of leadership, stakeholder management. Stabilising by ensuring the short term future of the business through cash management. Funding and Recaptilising the company. Fixing the company in strategic, operational and organisational term. Mcdonalds adopted the turnaround strategy in 2003 when the sales declined, ,Measures for the service and quality of the chain continued to fall behind its rivals.To fight back the Company started to follow a turnaround from the corporate level by bringing back the James R Cantalupo former vice president under who the company bloomed from 1990 to 2000 and gained 32,000 franchisees. With the coming back of Cantalupo he started the redesigning by emphasizing more on the quality , friendliness and speedy service of staff and laid emphasis on the increased sales and expanding the more on business. The Mexican Grill and The Boston which was acquired by the Mcdonalds were let out .McDonalds set out new Product line to its Menu By opening McCaffes around the world as expansion in 2003. Breakfast new menu was added as pancakes with the combination of bacon, sausage and egg which was a great success along with the breakfast coffee drinks. It also added healthy food as salads, drinks. Company also added new logo I m loving it in the TV Adverts using Justin Timberlake to target teenagers instead of the kids to endorse Mcdonalds which turnaround a great success for the company and company started to increase its sales following the strategy.(scribd,2010) The changes in the external environment of the business can also be determined by the Porter five force model which exactly shows the real picture of the competition in the market. The model of the Five Competitive Forces was developed by Michael E. Porter in his book à ¢Ã¢â€š ¬Ã… ¾Competitive Strategy: Techniques for Analyzing Industries and Competitors in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Competition: Since the time Mcdonalds started in 1940 it is providing excellence service to its customer. Market is tough and tight for fast food industry. Opening up of cafe to the product line and serving breakfast has provided tight competition with Starbuck and other breakfast serving restaurant. Burger king and KFC are the two great competitors for Mcdonalds. Ease of entry: it is hard for new entrants to enter the market because of the high cost of entry and research and development cost. Established brand names like Mcdonalds make it even harder and new entrants have to face price competition. Substitutes: there are many products available in the market for substites.People can go to Burger King And KFC and Starbucks looking for substitutes. Power of suppliers: products are not readily available from suppliers so the power of suppliers is relatively low. Power of Buyers :Power of buyer is low. {Adopted from: marketing teacher,2010} Task 3.2 Develop a comparative understanding of activity from organizations in the market. Mcdonalds is the market leader in the fast food industry .Fast food business fluctuates with the economy rise and doom, customer taste, cultural differences, climatic conditions and the buying behaviour of customers. Mcdonalds is a customer oriented business focuses on the service, quality, processes and the accuracy of the service delivered to customer. McDonalds tends to provide universal taste of food to customers despite of their regional differences. It promotes diversity among its employees and believes in equal opportunities to its employees. Regular Training and development of the staff at the operational and management level gives it a stand out position in the market. Innovation and the TV Endorsement and its target market and motto I m Loving it makes it a standalone brand among the customers. To retain Customers Mcdonalds is regularly adding new menu its list and to adapt to cultural differences it follows the culture of the country Like having separate entrances for la dies in the Muslim Countries., to respect religious beliefs of the people it is adapting religious beliefs of the community as serving Halal food in the Arab Countries and Not serving Beef in India. To reduce Carbon Emission promoting Recycling, to save water use recycled water in toilets, to save trees reduce the packaging paper and tray liners and also recycle paper for packaging. For survival and sustainability it follows the local wage rate, local suppliers, local legal and taxation system, and local ethics. Task 3.3. Create a range of feasible options as the basis of future organizational strategy. Mcdonalds strategy is about the fresh and quality food to customer with friendly service. Mcdonalds plan to win and target customer with the universal taste respecting the religious and cultural beliefs. With the environmental issues Mcdonalds is helping to promote cleaner streets by sponsoring bins in conjunction with the council and also initiating people to get the Rubbish in Bin By Using Bin it motto. McDonalds is also getting in recycling revolution by using the waste oil to get bio diesel .In its motive to Save energy and water it is getting waterless urinals in the washrooms to save water and are trying to use the recycled water. For the packaging of the food it is using more than 82% of the recyclable material and trying to cut the 10 cm of the trayliners used to serve customer which eventually is saving about 84 tonnes of paper every year. McDonalds is also working for the animal welfare so that that animals are given the free field to roam around and is using free range eg g for its breakfast menu. ,it is also using the organic food to promote healthy food and also using fair trade coffee beans to help the farmers of Africa.Last but not the least Mcdonalds is sponsoring the london 2010 along with the coca cola and cadb ury. Mcdonalds will still follow the strategy of plan to win and keep on improving its quality, service , speed and accuracy .along with the training and development of employees . Conclusion :In the above assignment discussion has been made over Mcdonalds and its policies and strategies over the future which will them to sustain in the future. Though it is a market leader but by showing its concern over the carbon emissions and the work ethics it is showing the great deal of responsibility towards to society . The moral duty is fulfilled by employing diversity and proper training and development. It believes in the equal oppurtunities to everybody And require great commitment from its people to maintain the standards of service ,quality and friendliness so that people can say I m loving it!!!!!!!!!

MRSA infection in neonatal intensive care units

Methicillin-resistant S. aureus strains increased in the U.S. from 2.4% in 1975 to 29% in 1991. Once established, MRSA is very difficult to eradicate. One of the biggest challenges is preventing cross-transmission of these organisms. Certain patients are more prone to infection and colonization by MRSA, and neonates in NICUs are a high-risk group (Finkelstein, 1999, 24). Risk factors for acquiring MRSA include prolonged hospitalization; a stay in an ICU or burn unit; previous antimicrobial therapy; surgical site infections; and exposure to colonized or infected patients. The majority of MRSA infections in neonates are primary bacteremias and pneumonias. MRSA infections have also been associated with increased morbidity and mortality, and greater hospital costs than those due to methicillin-sensitive Staphylococcus aureus (MSSA). Why are neonates more prone to MRSA infection? With regards to skin infection it has been shown that an infant's gestational age has a great impact on epidermal barrier function as measured by transepidermal water loss. Preterm infants younger than 28 weeks show decreased functioning of the epidermal barrier, placing them at risk for cutaneous bacterial infection (Kalia, 1998, 323). The skin barrier attains full function, similar to adult skin, by 2 to 4 weeks of age but can take as long as 8 weeks in extremely premature infants. Mandel et al. (2004, 161) conducted a retrospective analysis of the role of cutaneous abscess in sepsis. They found that in 22% of the newborn infants with nosocomial sepsis, cutaneous abscess was the underlying cause. Additionally, their immune systems are underdeveloped, with white blood cells-neutrophils in particular-moving more slowly than adults'. It's suspected that neonates become colonized with S. aureus soon after being placed in a nursery, with the umbilical stump as the site of initial colonization. Factors identified with MRSA outbreaks in NICUs include high infant-to-staff ratios and infection transmission through hand carriage by health care workers (AAP, 1997) Spread of MRSA Infection and prevention MRSA is found on the anterior nares, groin, and perineum, S. aureus is a normal part of the body flora. It's also a common pathogen, causing major infections in both compromised and uncompromised patients. The normal immune response of the body can overcome any MRSA attempt to infection, but in the intensive care due to reduced immune response, and bacterial resistance, these organisms van create havoc. In a report from Australia quoted by Park (2007, 26-27), it was shown that from 1992 to 1994, methicillin-resistant S. aureus (MRSA) infections caused only 8% of staphylococcal infections but from 1995 to 1998, there was an outbreak of MRSA infection in two Melbourne hospitals. Methods to halt the spread of MRSA outbreaks include reducing overcrowding and improving staffing patterns, treating umbilical cords with triple-dye, and bathing full-term infants with hexachlorophene. But unless strict adherence to infection control is maintained, it is not possible to control this infection. Handwashing is most important. The American Academy of Pediatrics recommends that neonatal nursery staff perform a three-minute handwash at the start of each shift, cleansing up to the elbows with an antiseptic soap and sponge brush (AAP, 1997). Infected neonates should be placed on contact precautions. Here the infant must be handled with gloves, and if possible, depending on the spacing available and the acute status of the infant, they should be assigned to isolated chambers (Larson, 1995, 259, 262). Hitomi etal (2000, 127), advocate the use of mupirocin as a nasal spray to control nasal carriage of MRSA in the hospital staff, which act as the greatest source of spread of this infection. Effects of Nosocomial MRSA infection According to the NNIS (2002), In 2000, 55.3% of S. aureus isolates causing nosocomial infections among patients hospitalized in intensive care units in hospitals reporting to the National Nosocomial Infection Surveillance System were resistant to methicillin. Nambiar etal(2003, 224) give an interesting account of the complications MRSA can cause in an intensive care setting. They describe an outbreak of MRSA, in which neonates had meningitis, blood stream infection (with its complications – soft tissue abscess, shock and a right atrial thrombus, suppurative thrombophlebitis, osteoarthritis of the distal femur and knee joint). Masanga (1999, 169) reported colonic stenosis after MRSA enterocolitis. The predisposing factors for neonatal MSSA enterocolitis include breast feeding from a mother with staphylococcal mastitis,an indwelling feeding catheter   and malnutrition. The clinical picture of MSSA enterocolitis in the neonate is characterized by acute onset of diarrhea and ileus. Necrotizing enterocolitis. intensive care including mechanical ventilation, indwelling feeding catheter, the use of antibiotics, the delay of feeding causing the lower acidity of gastric contents, hypoactive peristalsis and the change of bowel flora, conditions similar to those seen in postoperative patients most likely predisposed to abnormal MRSA growth and resultant enterocolitis. toxic shock syndrome (combination of erythema and thrombocytopenia, low-positive C-reactive protein (CRP) value, or fever), (Richtmann etal, 2000, 88-89, Takahashi, 2003, 234-35). Effect on parents The illness in the neonate is a great source of stress to the parents. Not only is the child separated from the mother, which leads to anxiety for the mother, and nursing problems. There occur problems of lactation, with breast engorgement and galactorrhoea. In addition, the mother is at a greater risk of catching infection from a septicemic child with pneumonia and exanthemas. Skin infection can spread via contact. Thus parents are at an increased risk from a child affected with MRSA infection. Treatment Prevention is the best treatment. This infection can be rapidly fatal in the neonates, particularly the preterm infants. Prompt recognition of the symptoms and active measures to prevent spread can reduce the morbidity and mortality. Cultures should be obtained for susceptibility determination in any child with a presumed S. aureus infection that is moderate to severe. The choice of empiric therapy, before susceptibility testing, and the choice of definitive therapy will depend on the local antibiotic resistance patterns, the tissue site and severity of infection, and the toxicity profile of the antibiotic. Vancomycin has been the traditional antibiotic employed for the treatment of MRSA pneumonia. It has been found, however, that problems with lung tissue penetration may limit the effectiveness of vancomycin   Similarly, daptomycin has been shown to have limited activity for pneumonia due to limited lung penetration and inhibition by surfactant. Linezolid has also recently been evaluated as a specific treatment for MRSA pneumonia, and found to have good lung tissue penetration capability (Bradley, 200575-77) Conclusions MRSA infection in the neonatal intensive care setting is associated with exceptional morbidity and mortality. Preventive measures are the key to victory against MRSA. Each unit has to chart out effective protocols of infection control and adhere to it with a strong will. References 1 Finkelstein LE etal(1999MRSA in NeonatesAm J Nurs, Volume 99(1).January.24 2   Kalia YN, Nonato LB, Lund CH, et al(1998) Development of skin barrier function in premature infants. J Invest Dermatol; 111:320-326 3 Mandel D, Littner Y, Mimouni FB, et al.( 2004) Nosocomial cutaneous abscesses in septic infants. Arch Dis Child Fetal Neonatal Ed; 89:F161-F162 4 American Academy of Pedaitrics and American College of Obstetricians and Gynecologists (1997)Guidelines for Perinatal care, 4th ed. Elk Grove Village, IL, The Academy, 5 PARK CH etal(2007). Changing trend of neonatal infection: Experience at a newly established regional medical center in KoreaPediatr Int, Volume 49(1).24–30 6 Larson, E. L(1995). APIC guideline for handwashing and hand antisepsis in health care settings. Am.J. Infect.Control 23:251-269. 7   Hitomi S, Kubota M, Mori N, et al(2005): Control of methicillin resistant Staphylococcus aureus outbreak in a neonatal intensive care unit by unselective use of nasal mupirocin ointment. J Hosp Infect; 46: 123–129 8 National Nosocomial Infections Surveillance (NNIS) System Report. Data Summary from January 1992 to June 2001. Issued August 2001. Available at: http://www.cdc.gov/ncidod/hip/NNIS/members/members.htm #nnisreports. Accessed Mar 5 2007 9   Nambiar S, Herwaldt LA, Singh N (2003). Outbreak of invasive disease caused by methicillin-resistant Staphylococcus aureus in neonates and prevalence in the neonatal intensive care unit. Pediatr Crit Care Med, Volume 4(2).220-226 10 Masanga K etal (1999). Colonic Stenosis After Severe Methicillin-Resistant Staphylococcus Aureus Enterocolitis In A Newborn. Pediatr Infect Dis J, Volume 18(2).169-171 11 Richtmann R etal.(2000) Outbreak Of Methicillin-Resistent Staphylococcus Aureus (Mrsa) Infection On A Neonate Intensive Care Unit (Nicu): The Key Role Of Infection Control Measures. Am J Infect Control, Volume 28(1).February 88-89. 12 Takahashi N (2003). Neonatal toxic shock syndrome-like exanthematous disease (NTED). Pediatr Int, Volume 45(2).233–237 13 Bradley JS (2005). Newer antistaphylococcal agents Curr Opin Pediatr, Volume 17(1).71-77                           

Harvard business publishing Essay

In mid-September of 2010, Emily Harris, vice president of New Heritage Doll Company’s production division, was weighing project proposals for the company’s upcoming capital budgeting meetings in October. Two proposals stood out based on their potential to strengthen the division’s innovative product lines and drive future growth. However, due to constraints on financial and managerial resources, Harris knew it was possible that the firm’s capital budgeting committee would decline to approve both projects. She also knew that New Heritage’s licensing and retail divisions would promote compelling projects of their own. Consequently, Harris had to be prepared to recommend one of her projects over the other. The Doll Industry Revenues in the U.S. toy and game industry totaled $42 billion in 2008 and were projected to increase by 4.6% per year to $52.5 billion by 2013. The market was divided into two broad segments: video games (48%) and traditional toys and games (52%). The second segment was further divided into infant/preschool toys (14.5%), dolls (14.1%), outdoor & sports toys (12.3%), and other toys & games (59.1%) including arts and crafts, plush toys, action figures, vehicles, and youth electronics. The U.S. market for toys and games was dominated by large global enterprises that enjoyed economies of scale in design, production, and distribution. Revenues were highly seasonal; the largest selling season in the United States coincided with the winter holiday period. Within the toy and game segment, U.S. retail sales of dolls totaled $3.1 billion in 2008 and were projected to grow by 3% per year to $3.6 billion by 2013. The doll category included large, soft, and mini dolls, as well as doll clothing and other accessories. The phenomenon of â€Å"age compression†Ã¢â‚¬â€ the tendency of younger children to acquire dolls that had traditionally been designed for older girls—reduced growth in the â€Å"baby-doll† sub-segment. Competition among doll producers was vigorous, as a small number of large producers targeted similar demographics and marketed their dolls through the same media. Lasting franchise value for a branded line of dolls was rare; the enormous success of Barbie ® dolls was an obvious exception. More recently and on a much smaller ________________________________________________________________________________________________________________ HBS Professor Timothy Luehrman and HBS MBA Heide Abelli prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. Th is case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright  © 2010 Harvard Business School Publishing. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business Publishing. Harvard Business Publishing is an affiliate of Harvard Business School. Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 New Heritage Doll Company: Capital Budgeting 4212 | New Heritage Doll Company: Capital Budgeting scale, New Heritage also had created a durable franchise for its line of heirloom dolls. But the popularity of most doll lines waned after a few years. New Heritage Dolls By 2009, New Heritage had grown to 450 employees and generated approximately $245 million of revenue1 and $27 million of operating profit from three divisions: production, retailing, and licensing. The production division, discussed further below, designed and produced dolls and doll accessories. The retailing division offered a unique â€Å"intergenerational experience† for grandmothers, mothers, and daughters, centered upon the character histories and storylines of the company’s dolls and delivered through an online website (42%), a mail-order paper catalog (33%), and a network of retail stores (25%). In fiscal 2009, the retailing division generated roughly $190 million of revenue and $4.8 million of operating profit. The licensing division was started in 1998, and represented the company’s newest and most profitable division. It sought to extend the New Heritage brand and capitalize on high levels of customer loyalty by selectively licensing the company’s doll characters and themes to a variety of media that reached the firm’s target demographic of toddler to pre-teen girls. In fiscal year 2009 the licensing division generated $24.5 million of revenue and $14.5 million in operating profit. New Heritage’s Production Division Production was New Heritage’s largest division as measured by total assets, and easily its most asset-intensive. Approximately 75% of the division’s sales were made to the company’s retailing division, with the remaining 25% comprising private label goods manufactured for other firms. Table 1 summarizes the division’s various sources of revenue and operating income. Table 1 Production Division Data: Revenue ($ millions) Operating Income ($ millions)    New Heritage’s dolls and accessories were offered under distinct brands with different price points, targeting girls between the ages of 3 and 12 years. The company’s baby dolls were generally priced from $15–$30, and were offered to younger girls in earlier stages of development. These dolls typically came with a â€Å"birth certificate† and a short personal history. Dolls in the higher-end of this category incorporated technology that produced a limited amount of speech and motion. For the 1 The division revenue figures include approximately $95 million of internal sales within divisions which are eliminated when considering consolidated revenue for the company. BRIEFCASES | HARVARD BUSINESS PUBLISHING Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 The New Heritage Doll Company was founded in 1985 by Ingrid Beckwith, a retired psychologist specializing in child development and the grandmother of two young girls. Dr. Beckwith believed the dolls produced by the major toy companies did little to develop girls’ imagination or foster a positive self-image, so she created a line of dolls with unique storylines and wholesome themes. Dr. Beckwith’s dolls struck a chord among mothers and grandmothers who also rejected the dated, clichà ©d images portrayed by the popular dolls of the day. New Heritage Doll Company: Capital Budgeting | 4212 New Heritage outsourced much of its production to a select number of contract manufacturers in Asia. To ensure product quality and safety, the company maintained a fulltime staff to oversee material sourcing, production, and quality control on site at each of its manufacturing partners. Manufacturing activities that required precise tolerances or proprietary processes, along with all the creative elements (design and product prototyping, for example), were handled in-house at the company’s headquarters facilities in Sacramento, California. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 Capital Budgeting at New Heritage New Heritage’s capital budgeting process retained some of the informality that characterized the company’s early years as an innovative startup. As the company grew, deliberate steps were taken to decentralize some of the project approval process and increase spending authority at the division level. However, large and/or strategic spending proposals were reviewed at the corporate level by a capital budgeting committee consisting of the CEO, CFO, COO, the controller, and the division presidents. The committee examined projects for consistency with New Heritage’s business strategy and sought to balance the needs and priorities of each division against practical financial and organizational constraints. The committee also sought to understand project interdependencies and the potential for a given investment to strengthen the whole company, not solely the division proposing it. New Heritage’s capital budget was set by the board of directors in consultation with top officers, who in turn sought input from each of the divisions. The capital and operating budgets were linked; historically, the capital budget comprised approximately 15% of the company’s EBITDA. The committee had limited discretion to expand or contract the budget, according to its view of the quality of the investment opportunities, competitive dynamics, and general industry conditions. Before being considered by the committee, projects were described, analyzed, and summarized in self-contained proposal documents prepared by each division. These contained business descriptions, at least five years of operating and cash flow forecasts, spending requirements by asset category, personnel requirements, calculations of standard investment metrics, and identification of key project risks and milestones. Financial Analyses Financial analysis began with operating forecasts developed with oversight from New Heritage operating managers. Revenue projections were derived from forecasts of future prices and volumes. Fixed and variable costs were estimated separately, by expense category. Forecasts of working capital requirements were likewise vetted by line managers, who paid particular attention to a project’s requirements for various types of inventory. Forecasts for fixed assets and related depreciation charges were developed in cooperation with analysts reporting to the controller. HARVARD BUSINESS PUBLISHING | BRIEFCASES Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org $75–$150 price range, New Heritage produced a line of heirloom-quality dolls and accessories. These were designed to appeal to older girls and to convey a sense of cultural and family tradition among grandmothers, mothers, and daughters. The heirloom dolls had more elaborate accessories and personal histories. Finally, the company offered a line of high-end dolls based on fictional â€Å"celebrities,† each associated with a charitable cause and embracing more contemporary fashion trends. These dolls targeted girls in the so-called â€Å"tween† age range of 8–12 years, and also were priced from $75–$150. Like the heirloom dolls, celebrity dolls also came with more elaborate stories and accessories. 4212 | New Heritage Doll Company: Capital Budgeting New Heritage assigned discount rates to projects according to a subjective assessment of each project’s risk. High-, medium-, and low-risk categories for each division were associated with a corresponding discount rate set by the capital budgeting committee in consultation with the corporate treasurer. Assessments of each project’s risk were made at the division level, but subject to review by the capital committee. Factors considered in the assessment of a project’s risk included, for example, whether it required new consumer acceptance or new technology, high levels of fixed costs and hence high breakeven production volumes, the sensitivity of price or volume to macroeconomic recession, the anticipated degree of price competition, and so forth. In 2010, â€Å"medium†-risk projects in the production division received a discount rate of 8.4%. High- and low-risk projects were assessed at 9.0% and 7.7%, respectively. Projects that created value indefinitely, given continuing investment, were treated as going concerns with a perpetual life. That is, NPV calculations included a terminal value computed as the value of a perpetuity growing at a constant rate. However, to preserve an element of conservatism, the capital committee generally insisted on relatively low perpetual growth rates – lower than New Heritage’s historical growth and lower than near-term growth forecasts for a given division. Investment Opportunities in the Production Division Emily Harris was focused on two of the production division’s most attractive current proposals. The first involved expanding the successful Match My Doll Clothing Line to include matching allseason clothing for tween girls and their favorite dolls. The second involved a new initiative, the Design Your Own Doll line, which employed web-based doll-design software to let users â€Å"customize† a doll’s features to the customer’s specifications. Match My Doll Clothing Line Expansion The Match My Doll Clothing line originally consisted of a few sets of matching doll and child clothing and accessories for warm weather. It quickly became successful after the daughters of a few celebrities were spotted and photographed wearing items from the line, and girls’ magazines included some of the line in â€Å"what’s hot to wear† sections. Given recent publicity, Marcy McAdams, the brand manager responsible for the line, believed the timing was perfect to expand. Specifically, McAdams proposed to create an â€Å"All Seasons Collection† of apparel and gear covering all four seasons of the year. She expected the new offerings to be at least as profitable as the existing line, since its current popularity would make it possible to maintain premium prices. She also hoped to take advantage of off-peak discounts offered by some suppliers and contract manufacturers as they tried to smooth their capacity utilization. In the same fashion, McAdams argued the expansion would help reduce, or at least not exacerbate, the seasonality in New Heritage’s sales and earnings. BRIEFCASES | HARVARD BUSINESS PUBLISHING Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 Operating projections for a given project were used to develop cash flow forecasts that would underpin calculations of net present value (NPV), internal rates of return (IRR), payback period, and other investment metrics. Cash flow forecasts were intended to capture the incremental effect of a proposed project on the firm’s cash flow for each year within the forecast period. That is, each project’s cash flow forecasts excluded non-cash items, such as depreciation charges, and nonincremental items such as sunk costs (i.e., costs that would be incurred regardless of whether a given project was undertaken or not). The cash flow forecasts were computed on an after-corporate-tax basis, but excluded all financing charges. Some elements of the cash flow forecasts were prepared with assistance from treasury analysts, but most of the necessary adjustments were well understood by division staff. New Heritage Doll Company: Capital Budgeting | 4212 To exploit the current popularity of the original Match My Doll Clothing line, especially given the fickle nature of children’s fashion trends, McAdams believed the opportunity had to be exploited without delay. Her investment proposal contained relatively large outlays for R&D, market research, and marketing to maximize the probability of quick acceptance and longer-term success for the follow-on line. Upfront investment expenditures are summarized in Table 2. Table 2 Match My Doll Clothing Extension Outlays The R&D and marketing expenditures would be deductible for tax purposes at New Heritage’s 40% corporate tax rate. The property, plant and equipment was expected to have a useful life of 10 years; the associated depreciation charges, shown in Exhibit 1, were based on the modified accelerated cost recovery system (â€Å"MACRS†) allowed by the IRS. Working capital requirements, shown in Table 2 for 2010 and in Exhibit 1 for subsequent years were based largely on recent historical experience with the original Match My Doll Clothing line. Finally, given the proven success of Match My Doll Clothing, Harris believed the project entailed moderate risk—that is, about the same degree of risk as the production division’s existing business as a whole. Design Your Own Doll This initiative targeted existing New Heritage customers, many of whom owned several of the company’s heirloom dolls. The company’s research showed that, when asked what features (e.g., appearance, ethnicity, â€Å"life story,† etc.) New Heritage should give to future dolls, loyal customers’ responses had a high correlation with their own personal data. That is, girls wanted dolls like themselves. Further research suggested that many loyal customers would purchase yet another doll if they could customize the doll’s features to create a â€Å"one-of-a-kind† addition to a girl’s or family’s existing collection of dolls. It also promised to increase the girl’s pride in and identification with the doll, both because of their shared features and because of the girl’s participation in creating the doll. This in turn further cemented customer loyalty. The customization process would begin with a new section of New Heritage’s website, where proprietary design software enabled the customer to select physical attributes of the doll such as hair color, hair length & style, skin color, eye shape, eye color, and other facial features. The software could combine selected features and produce a photo-realistic image showing the finished doll with user-selected accessories. The customer could zoom in or out on the image and rotate it to see different aspects. The software made it easy to try out different combinations of features and accessories before making a purchase. Elizabeth Holtz, brand manager for heirloom dolls, was very excited about the project. She observed, â€Å"A girl’s relationship with her favorite doll is often partly mommy and partly big sister. Either way, having your doll look more like you is really powerful. And there’s excitement in the experience: exploring the website, naming the doll-to-be, selecting her first outfit†¦even the anticipation of waiting for the new doll to arrive. I really think this is big.† Holtz also believed that the dolls could command a premium price. â€Å"Customers will naturally expect to pay more [for a HARVARD BUSINESS PUBLISHING | BRIEFCASES Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Initial Expenditures ($ thousands) 4212 | New Heritage Doll Company: Capital Budgeting custom doll],† she said. Market research with focus groups revealed significant enthusiasm for the product concept and supported the notion of premium prices. The web-based software tools and order entry system required New Heritage to make significant modifications to its existing technology infrastructure, expand its webhosting capacity, and modify the terms of its third-party service agreements to ensure a higher level of service quality. The majority of the R&D expenditures shown below were related to software development, hardware upgrades, and web design. The development time involved, including product testing, was expected to be approximately 12 months. Initial outlays, some of which occurred in 2010 and some in 2011 As with Match My Doll Clothing, the required R&D and marketing costs would be tax deductible. Manufacturing equipment had to be ordered by the end of 2010 to be ready for production at the beginning of 2012. While New Heritage had the option to pay for custom equipment in quarterly installments, the firm could get a substantial discount by paying for the equipment up front, in 2010. Figures in Table 3 and Exhibit 2 reflect the discounted cost of the equipment. To support the forecasted level of sales, substantial investment in working capital (primarily work in process inventory of partially manufactured dolls) would be required beginning in 2011. And still more equipment would have to be purchased and installed no later than 2014. In years 2015 and following, investments in working capital and equipment would revert to patterns familiar from the production division’s traditional lines of dolls. To complete development work, Holtz planned to use some of the company’s existing IT staff. The majority of the work would take place during calendar 2011. The number of people and their fully loaded costs are shown Table 4. These costs were not included by Holtz in the initial outlays shown in Table 3 or in the forecasts presented in Exhibit 2. The development personnel Holtz needed were considered â€Å"corporate† resources and were almost certainly available to work on the project. Table 4 Design Your Own Doll Development Personnel, ($ 000s) Application Development Personnel Costs: Web Application Developers Database Manager Systems Integration Specialist Total Cost BRIEFCASES | HARVARD BUSINESS PUBLISHING Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org However, even a limited degree of customization increased manufacturing complexity and expense. Further, because of the low production runs and volume, fixed costs on a per unit basis were expected to be relatively high. Consequently, the breakeven volume for the project was also expected to be high. New Heritage Doll Company: Capital Budgeting | 4212 Finally, Holtz needed to give Harris her assessment of the project’s riskiness. On the one hand, Design Your Own Doll had a relatively long payback period, introduced some untested elements into the manufacturing process, and depended on near-flawless operation of new customer-facing software and user interfaces. If the project stumbled for some reason, New Heritage risked damaging relationships with its best customers. On the other hand, the project had a relatively modest fixed cost ratio, and it played to the company’s key strength—creating a unique experience for its consumers. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 Emily Harris still needed to complete her review and financial analysis of the two proposals. McAdams and Holtz were in frequent touch with Harris and both had offered to respond to any questions she might have about the proposals: the business case, the financial projections, the operating details, or anything else. Harris expected that she would indeed have some follow-up questions as she worked through her financial analyses. She also knew that her final recommendation might disappoint some executives within the division, who would scrutinize it closely. It had to be well-supported.

The Iliad Or The Poem Of Force - 1472 Words

In her essay, The Iliad or The Poem of Force, Simone Weil argues, â€Å"The true hero, the true subject matter, the center of the Iliad, is force,† (152). â€Å"Force† is defined as, â€Å"that x that turns anybody who is subjected to it/ into a thing,† (153). Weil perceives force as an active entity that is capable of profound, negative, influences on the lives it touches (153). For a hero, force replaces his rational sensibilities by an uncontrollable urge to slaughter his opponent in an animalistic fashion, an unavoidable outcome generated by war. Weil defines this uncontrollable type of force as â€Å"the force that kills,† marking the moment when a hero becomes a warrior (155). Simone Weil records The Iliad as a evil and vanity of war, but she fails to do justice to the complexity of Homer s challenging vision. She turns a blind eye to poem s commitment to heroism, a concept she assigns force as the poem s true hero. Weil overlooks the Homeric heroâ⠂¬â„¢s investment in the ethos of glory and the participation in the â€Å"noblest deeds of men,† which is present in The Iliad’s â€Å"true hero,† Hector. In The Iliad, war generates the most meaningful, noble, and glorious actions along with destruction and self-destruction. Homer understands the allure of war as Weil does not, her interpretation is one-sided and fails to recognize the humanity and pathos behind of the slayers. Weil makes this exclusion because, she reads The Iliad as an antiwar poem due to her own experiences in war life. Therefore,Show MoreRelated Iliad Essay1253 Words   |  6 PagesThe Iliad and The Odyssey are two epic poems with both similar and different styles to the structure of the poems, as well as each poem having the same gods incorporated into the stories intervening with the day to day lives of the mortals. Greek poetry before Homer was all composed orally; therefore it is assumed that Homer’s works are the first written works of art (Joachim Latacz, page 15). Scholars who have spent extensive time researching the origin of Homer’s work cannot verify a specificRead MoreTheme Of The Iliad1318 Words   |  6 PagesThemes found in the Iliad The Iliad is one of the greatest and earliest works of Greek literature beautifully written by Homer. The poem was set at the last year of the Trojan War prior the fall of Troy, that was indeed ten years long. Moreover, the focus of this poem is a conflict that rose among Agamemnon, king of Mycenae and commander-in-chief of the allied Greeks, and Achilles, the greatest warrior, rather than the events and battles that occurred in the Trojan War between the Greeks and TrojansRead MoreA Comparison of Achilles and Hector881 Words   |  4 PagesHomers Iliad refers to an ancient epic Greek poem. 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The scholar inscribes: In the Homeric epics, women seem to have little independence; they were always under the guardianship of a man, whether a husband, father, or even a son. Wives must live in their husband’s cities; women like Chryseis or BriseisRead MoreCritical Appreciation Of Sappho Poem799 Words   |  4 PagesGreek Poet Sappho, like her poems, pieces of her life have been lost over time. Here is what we know for sure. Sappho lived on the island of Lesbos around the turn on the seventh and six centuries BCE. She composed songs with a lyre accompaniment known as lyric poetry. These poems were collected into nine volumes and what has survived exist in fragments. (cite to come) Fragment 16 is a poem about love. This poem’s desires to answer the question what is beauty? Our Poem begins with the introductionRead MoreAnalysis Of Homer s The Iliad 1352 Words   |  6 Pagessociety. In the Iliad, Homer portrayed the role of women in his time as having a very suppressive role. Women during this period of time and especially in this culture are treated primarily as merely property and were used for producing material within the household. Women were often taken and given as if they were material belongings, due to their lack of choice and their unfortunate circumstances. However, apart from portraying women as pieces of property, Homer depicts in his Iliad that women areRead MoreAt the time of Homer, it was normal for gods to meddle in human affairs, and he shows this in The1300 Words   |  6 Pagesthe time of Homer, it was normal for gods to meddle in human affairs, and he shows this in The Iliad. A vast majority of the Greek gods play some role in how the Trojan wars turns out, which is what the poem is all about. Homer uses the gods to deviate from how normal wars are played out. The head god, Zeus, will be the focus as I go through what he did and how it affected the War as well as The Iliad. 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