Analysis Of The Pharmaceutical Industry Economics Essay

Analysis Of The Pharmaceutical Industry Economics Essay The most important definition of industry was given by Michael Porter in 1979: a group of competitors producing substitutes that are close enough that the behavior of any firm affects each of the others either directly or indirectly. Later, Porter defined the term more precisely as a group of companies offering products or services that are close substitutes for each other, that is, products or services that satisfy the same basic customers needs. This new definition emphasizes the importance of industry borders and industrys role as a market supplier or producer of goods and services, as distinguished from a market, defined as a consumer of goods and services. Furthermore, inside every industry there are groups of companies that follow similar strategies, defined by Michael S. Hunt in his unpublished 1972 Ph.D. dissertation as strategic groups. Between these groups there are differences in entry barriers, bargaining power with buyers and suppliers and skills and resources . Strategic groups compete against each other within the industry as a result of these differences. 1.2 Models to Analyze the Industry and Its Environment The literature agrees that comprehension of the industry structure is essential to developing a firms strategy and has a greater effect on the firms performance than whether it is business-specific or corporate-parent. The comprehension of the structure requires analyses of the industrys life cycle. It also requires step-by-step political, legal, technological, social and economic analyses as well as the five driving forces of business, provided by Michael Porter. By utilizing these analysis techniques, it is also possible to anticipate changes in industry competition and profitability over time. 1.2.1 Industry Life Cycle Analysis There are different phases during the development of an industry. Every phases is characterized by a different environments which make competition assumes different the form. Through studying the life cycle, the industry realizes its stake in the market and its influence on consumers. The industry life cycle model includes four different phases: introduction, growth, maturity and decline. The first phase, called introduction, is characterized by a low demand, whereas prices are high as a consequence of firms inability to realize economies of scale. For this reason profits are low and losses are possible due to high amount of investments in new categories. Barriers to entry are primary based on technologies and competencies. Strategy is focused mainly on RD and production, with the goal of enhancing novelty and quality. Competitors, attracted by the rising demand, attempt to replicate the new product. In the second phase, growth, the use of the product is extended, demand grows, prices decline due to economies of scale, barriers to entry are lower and the threat of new entry is high. At this phase the technology is usually not exclusive property of one or more firms, and the primary reaction to competition is marketing expenditure and initiatives; profits are not very high because prices decline as competitors enter the market. There is a transition period, or shakeout, between the second and the third phases. The shakeout involves finding and using all investment opportunities, because the market is near saturation and demand grows more slowly. In the third phase, maturity, market growth is low or nonexistent, and the focus shifts to gaining market share; demand is represented only by the substitution of products, investment in RD decreases and there is little innovation. In this phase firms seek cost reductions, and competition is based primarily on advertising and quality because of the low differentiation between products. Big firms acquire smaller players, while others are forced to exit. As a conseguence of high barrier to entry, the threat of new entrants are low. The last phase is decline, so called because of the continued decline in demand. Industries arrive at this stage for a variety of reasons. These include a change in social behaviors, demographic changes, international competition, technological innovations and increased customer knowledge. The buying process is based primarily on price rather than innovation. As a result, profit and revenues decline, and the industry as a whole may be supplanted. 1.2.2 PEST Analysis The word PEST is an acronym of several aspects that influence business activities at any given moment. An industry operates under Political, Economic, Social and Technological conditions. These conditions are identify and analyzed using the PEST Analysis technique. Due to their independent influence on any industry, it is essential that each be considered individually. The political aspect of analysis encompasses various factors that influence business activities in a given country at several levels: national, subnational and supranational levels. These include trade policies control imports, exports and international business partners, government ownership of industry, attitude toward monopolies and competition and trade policies. Hence, failure to consider these policies may result in loss of revenue due to taxes or penalty fees. Government stability is also very important, because it eradicates the risks associated with wars and conflicts. For an industry to thrive, political stability must be uncompromised; otherwise, sales and business activities will be uncertain, and investors will lose interest. The internal political issues in any country influence the running of industries. Politics based on race or religion may define the course for certain industries, especially if an industry falls short of political expectations. Elections and changes in leadership also influence an industrys strengths and opportunities and thus should be considered during the analysis. In addition to internal issues, international pressures and influences may affect some industries, such as environmental degradation or product safety. Another factor is terrorism. Though uncommon in many countries, poor or unstable governance may attract terrorist activities, vengeful or otherwise, which can have adverse effects on the industries operating in that country. All these issues may influence industry and firm expansion and industry attractiveness from stakeholders point of view. The economic aspect of analysis includes many factors. The first factor to consider is the current economic situation and trends in the country in which the industry is based. Companies should note inflation and economic decline so that when it comes to investing, they can avoid being financially affected. Failure to do this results in an economically blind platform that may cause the industrys sudden collapse. Another factor to consider in analysis is taxation rates. When there are high taxation rates in a given country, price-based competition may affect a given industry in the international market. International economic trends are also very important, because they define currency exchange rates, imports and exports. Other factors to consider are consumer expenditure and disposable income and, finally, legal issues, including all trade legislation in a given country and other legal regulations that inhibit or encourage expansion of business activities. Also to be considered are co nsumer protection laws, employment laws, environmental protection laws and quality standardization regulations. Industrial laws regulating competition, market policies and guidelines also play an important role in influencing industrys stability and future expansion possibilities . When considering the social aspect, factors including demographic changes, shifts in values and culture and changes in lifestyle are important to note so as to strategize on expansion and growth . Certain factors, such as media and communities, influence an industrys growth and returns. Brand name and corporate image are also very important in influencing growth and returns since they shape customer loyalty and shareholder investment. The medias views on certain industrial products should be incorporated into the analysis, as should consumer attitudes and sensibility to green issues, that is, issues that affect the environment, energy consumption and waste and its disposal. A companys information systems and internal and external communications should also be analyzed to ensure that it keeps pace with its competitors. Other factors are the policies regulating education, health and distribution of income, all of which, in the long run, influence consumer use of products . The technological aspect of analysis encompasses a variety of factors. In addition to developing technologies, all associated technologies, along with their innovation potentials, speed of change and adoption of new technology, should be analyzed for a proper evaluation of the industry. Other technological factors are transportation, waste management and online business. The level of expenditure on RD should also be considered in order to secure the industrys competitive position to prevent losses and collapse . 1.2.3 Porters Five Competitive Forces Analysis Porters model, as described by Kay, is an evolution of the Structure-Conduct-Performance paradigm conceived by Edward Mason at Harvard University in the 1930s and detailed by Scherer in the 1980s. , The model aims to determine the intensity of industry competition, major issues in determining strategy and whether an industry is attractive or not. Porter identified five competitive forces that act on an industry and its environment: threat of entry, intensity of rivalry among existing competitors, threat of substitutes, bargaining power of buyers and bargaining power of suppliers. The first competitive force, threat of entry, refers to the threat of new entrants in an established industry or acquisition to gain market share. Reactions of participants and barriers to entry are the main factors used to establish whether the threat is high or low. Six major entry barriers have been identified: à ¢Ã¢â€š ¬Ã‚ ¢ capital required to compete in the industry (especially in risky industry, such as advertising or RD) à ¢Ã¢â€š ¬Ã‚ ¢ switching costs à ¢Ã¢â€š ¬Ã‚ ¢ access to distribution channels à ¢Ã¢â€š ¬Ã‚ ¢ economies of scale à ¢Ã¢â€š ¬Ã‚ ¢ cost disadvantages independent of scale, such as patents, access to know-how, access to limited resources, favorable locations, government subsidies or policies and learning or experience curves à ¢Ã¢â€š ¬Ã‚ ¢ product differentiation à ¢Ã¢â€š ¬Ã‚ ¢ expected retaliation from existing firms against the new entrants Strong barriers to the entry of new firms enable a few firms to dominate the market and thereby influence prices. The second force is intensity of rivalry among existing competitors. Rivalry takes place when one or more firms inside an industry try to improve their position using tactics such as price competition, new product introduction or new services. Rivalry depends on several factors: number and size of competitors, industry growth, product characteristics (which determine whether the rivalry is based on price or differentiation), cost structure, exit barriers, diverse competitors, operative capacity and high strategic stakes. If an industry is inhibited, then firms will experience difficulties when trying to expand. The growth of foreign competition and the corporate stakes should also be included in the analysis. Threat of substitutes is the third forces. Substitutes are those products manufactured by other industries but serving the same purposes as the initial product. These substitute products cause the demand to decline. The implications are reduced profits and reduced market command by the original capital investor. This is of particular importance when the buyer has no switching costs and can easily compare products in terms of price and efficiency. Bargaining power of buyers is the fourth force. High bargaining power positions weak firms inside the industry, forcing price down, enhancing competition between industry players and resulting in bargaining for higher quality or services. This power is particularly high under certain conditions, such as few and specific buyers, undifferentiated products, low switching costs, the possibility of backward integration and information about demand and the availability of market price to the buyers. Furthermore, bargaining power is high if product quality is not a crucial factor of decision-making and if what the buyer is acquiring is a modest fraction of his total costs. Bargaining power is even higher when the buyer is a retailer or a wholesaler able to influence the consumers purchasing decision. The fifth and last force is the bargaining power of suppliers. This can act on the industry in several ways: raising prices, lowering quality or privileging some buyers. Supplier power can be divided into several elements. One of these elements is supplier concentration. Suppliers are in a stronger position when there are few suppliers, switching costs are high, the industry they are serving account for a small fraction of their business or their products are an important part of the buyers business. The bargaining power of suppliers is low or nonexistent when there are substitute products. Lastly, purchase volume and the suppliers influence on cost are very important. à ¢Ã¢â€š ¬Ã†â€™ 2. Pharmaceutical Industry Analysis A general overview of the pharmaceutical industry is the primary objective of this chapter. First, this chapther will define the industry in order to identify the main players in the pharmaceutical market. Second, using the instruments and models described in the first section, it will highlight the main characteristics of the industry and the factors that influence it. 2.1 Definition of Pharmaceutical Industry The pharmaceutical industry is composed of companies developing, manufacturing and marketing products licensed for use as medications. Their goal is to prevent, diagnose or treat diseases. A medicinal product, also called a pharmaceutical, according to the EU, is an exogenous substance or a combination of exogenous substances that can be organic or inorganic, natural or synthetic, and able, once inside the human or animal body, to modify physiological functions or to make a medical diagnosis through physical, chemical or physicochemical action. This industry is subdivided into two sub-industries characterized by different business models and players: prescription and OTC pharmaceuticals. Prescription pharmaceuticals, also referred to as Rx, are medicines that are available to the consumers for purchase in a pharmacy or drug store only with a prescription from a physician or administered only in hospitals. These medicines target specific diseases and, therefore, are prescribed for and used by one person only. OTC pharmaceuticals are instead used by more than one person which present the same symptoms in the same or in different time. These medicines are available to the consumer at every time and the consumer dont need any prescription from a physician for purchase. Furthermore, inside this industry there are two types of firms: Big Pharma and Biotech. These two types, despite being in the same business, vary in several ways: IP, drug methodology, expenditure and productivity of RD . The primary drug RD techniques used by Big Pharma firms are chemoinformatics and in silico screenings. Biotech firms are companies that use biotechnology in RD . Biotechnology, according to the Organization for Economic Cooperation and Development, is the application of science and technology to living organisms, as well as parts, products and models thereof, to alter living or nonliving materials for the production of knowledge, goods and services. Generally, Biotech firms tend to have a strong academic culture, are more risk treatment and spend less than half what Big Pharma spends on R&D; in 2004, Biotech firms spent $20 billion, versus $50 billion spent by Big Pharma. Generally, a Biotech product has multiple IP covering manufacture, formulation and stability, a s opposed to Big Pharma IP, which covers only the product, allowing generics to be produced quickly. While they may appear to have the same phenotype, their genotypes are distinct, so much so that they can be considered two industries, as stated by Arthur D. Levinson, Chairman and CEO of Genentech. Nevertheless, this distinction is not always clear, as many Biotech and Big Pharma firms are hybrids to varying degrees. The focus of this thesis are Big Pharma involved in the development of prescription pharmaceuticals to treat and prevent human diseases in the EU market. 2.2 Analysis of the Pharmaceutical Industry The purpose of this chapter is to provide a brief overview of the pharmaceutical industry lifecycle and investigate the major force acting inside it . 2.2.1 Industry Lifecycle Analysis People over the years have always tried to discover diseases causes and to find remedies against it. The most complete medical test, the Ebers Papyrus, is dated 1550 BC and it was written by Egyptians . However, the industrial production of drugs dates back to the year 1827 when Heinrich E Merck in Germany founded the first company for the production of cocaine and morphine . This event started the introduction phase of the pharmaceutical industry in Europe. In Europe, this industry was born in different way, reflecting the different strategic groups inside it. In the German-speaking countries, pharmaceutical companies were born as a branch of the chemical industry, with firms like Bayer and Hoechst in 1863, BASF in 1865 and Schering in 1871 in Germany, and CIBA in 1884 and Sandoz in 1886. Only Hoffman-La Roche in 1894 in Switzerland was originally a drug firm. On the other hand, in Italy, France and the UK companies were born from small shop pharmacies, such as Glaxo which traces it s origins to a pharmacy in Plough Court in 1715 . During the 1800s many compounds were already being isolated, but none was being synthetically produced. The first synthetic drug was Phenacetin, produced by Bayer and commercialized in 1888 . Ten years later Bayer commercialized Aspirin, which marked a milestone in the pharmaceutical industry. Many firms rose to prominence in the 1920s-30s with these kinds of pharmaceuticals, but also with a new class of pharmaceuticals: vaccines and serums . During the Second World War II the demand for drugs increased and mass production started, primarily with drugs such as antibiotics (penicillin, streptomycin and neomycin) and sulphonamide . The availability of these drugs dramatically changed the quality and the average life-span of people. In this period the German pharmaceutical industry, a leader along with the Swiss in pre-war times, was taken over by American firms who came to Europe to taking advantage of the condition of the continent after the war. The period 1950-60 was the start of the industrys growth phase , and this saw a proliferation of new drugs and high return to drug discovery. New drugs included tranquilizers such as MAO inhibitors in 1952, anti-tuberculosis drugs such as Isoniazid in 1952 and oral contraceptives in 1956. Other discoveries included Librium in 1960 and Valium in 1960. The latter was sold from 1963 and later became one of the most prescribed medicines in history before controversy emerged over its link to habituation and dependency. In the 1950s, legislation was put in place to regulate the industry, mainly touching on labelling and approval by health authorities as well as drawing distinctions between non-prescription and prescription medicines. In this apparently unstoppable process of pharmaceutical progression and optimism the industry was stalled by a drama concerning one drug sold in Europe and Japan, Thalidomide. This drug, synthesized in Germany in 1954, was introduced to the market to treat the symptoms of morning sickness and nausea in pregnant women. Between 1954 and 1960, it caused around 5,000 and 10,000 severe deformities in infants. In fact, the drug had not been sufficiently tested on animals to assess its safety, and after this revelation, in an attempt to better regulate the industry, drug oversight authorities were established to exercise control over the industry. The World Medical Association met in Finland and issued the Declaration of Helsinki, setting the standards for clinical research. Among other things, the declaration stated that pharmaceutical companies must prove the efficacy of a new drug in clinical trials before releasing it to the market, and subjects must consent to experiments done to test the efficacy of drugs in clinical studies. The industry remained small up to the late 1970s . Two events characterized the 1970s. First, chemical production for raw materials and early intermediates shifted out of Europe to low cost destinations such as India and China which later began producing active pharmaceutical ingredients and finally non-patented pharmaceuticals . Second, there was the birth of biotechnology. This new science had its roots many years before with the discovery of the double helix in 1953 by Watson and Crick, which followed the advances in molecular genetics, recombinant DNA technology, and molecular biology. Until then, drugs in commerce were produced by extraction from natural substances or chemical synthesis. These new techniques of molecular biology marked the birth of a new industry which became a competitor to and a substitute of the pharmaceutical industry. This new industry was pioneered by firms like Genentech and Amgen which introduced revolutionary drugs such as Epogen and recombinant human i nsulin. In the 1980s, legislation was passed in most European countries requiring adherence to strong patents for both the pharmaceutical products and their production processes. There were also new regulations such as the introduction of the Good Clinical Practices, which were guidelines regulating ethics and the reliability of clinical studies. In Europe, several states also initiated health maintenance organizations and managed care in an effort to limit rising medical costs, and a preference for preventive rather that curative medication took root. As the industry entered the 1990s, new discoveries and projects, such as the Human Genome Project 1990, changed the business environment. Also, there was a huge wave of MA to build on synergies. This included Ciba-Geigy and Sandoz forming Novartis, Hoechst and Roussel-Rhone Poulenc-Rorer forming Aventis and Glaxo Wellcome and SmithKline forming GlaxoSmithKline. In this way, the manufacturing of pharmaceuticals came to be concentrated in Western Europe and North America, with dominant firms and a few small companies that produced drugs in each country. The major European companies are still the dominant players not only in Europe but also in the global market. They include Novartis of Switzerland, Bayer of Germany, GlaxoSmithKline of the UK, Hoffman-la Roche of Switzerland and AstraZeneca of UK/Sweden. As the European pharmaceutical industry entered the 21st century, signs of the growth phase have become even more evident. This has been characterized by intense marketing to physicians and internet commerce. This, in part, has been facilitated by the liberalization of marketing rules requiring presentation of risks as well as the advertising message. Internet has enabled the direct purchase of raw materials by the manufacturers. The development of drugs has moved from the hit-and-miss approach to research and informed discovery. Alternative medicines and lifestyle medicines have presented new challenges and opportunities and have raised the level of competition in the industry. The aging population in western European economies has increased opportunities for raising revenues. In fact, because of the ageing population in the developed economies, drug consumption will increase since the aged have a higher frequency of contracting diseases than younger people. New epidemics, such as t he recent H1N1 flu outbreak, continue to batter the world population, and increased globalization makes them spread more quickly than ever. As the industry advances through the growth phase, companies are undertaking research and development initiatives both to develop new drugs and improve production processes. Further, the increased role of state-supported medical schemes across Europe, as well as other state-managed health programs around the world will greatly increase the reach of healthcare, extending it to more of the middle class and the poor who constitute the larger part of the population in most countries. As the medical programs continue to gain efficacy, the sales of pharmaceutical firms are expected to grow. In addition,, the emerging economies like Brazil, Russia, India, China, Turkey, Mexico, and South Korea will add to potential consumer numbers in the industry for European manufacturers. Together, these countries constitute a huge percentuage of the worlds population, meaning that their entry into the high income category will no doubt present an enormous potential market for pharmaceutical products. In fact, the growth in these markets is expected to reach 14-17% by 2014, compared with only 3-6% growth in the developed markets. Thanks to agreements signed by the Asia-Pacific and Europe governments concerning liberalization of the Asia-Pacific pharmaceuticals and investments market, many companies have already started to establish relationships with emerging markets. An example is GlaxoSmithKline, who partnered in 2009 with Indias Dr. Reddy Laboratories. GlaxoSmithKline will distribute the drugs manufactured and supplied by Dr. Reddy in Africa, the Middle East, Asia-Pacific, and Latin America. Even with these last considerations, the European pharmaceutical industry has only a limited chance of entering the maturity phase of the cycle. The barriers to entry are so great that they choke any new entrant in almost every facet of operation: in research and development, in product distribution, and in compliance with rules and regulations. In fact, this industry has complex manufacturing capabilities which are hard to replicate, and are protected by way of patent, as well as huge consumer attachment to preferred brands from specific companies, often informed by experience. Furthermore Europe generic penetration is very low (less than 10% in total). Thus the industry might remain in the growth phase for a considerable time.

Zara: It for Fashion

Report Title: Zara: IT for Fashion Executive Summary: Zara is a fashion company founded by Amancio Ortega in Spain in 1975. It is part of Inditex holding company, a large fashion retail chain that operates five other clothing brands. Since its inception, Zara has been financially very successful as it contributes the most to Inditex’s overall revenue. Also, Zara’s fast growth is represented by its massive global presence; it has stores all over the world from Americas to Middle East to Europe, its principal market. In my analysis, Zara’s competitive advantage lies in its ability to mass produce a large range of highly demanded latest designer clothes faster than its other competitors in the industry. By virtue of being first in the market, Zara is able to gain a larger chunk of the revenue pie than its competitors. However, Zara’s financial success and global brand recognition hides many structural inefficiencies and wastages across its business units. My analysis shows that Zara’s main problem stems from its inability to value the importance of having the right information at the right time. This is evidenced by Zara’s hesitance to invest in suitable technological infrastructure that collects, analyzes and interprets valuable data to make the most effective decisions. Furthermore, Zara’s organizational structure is plagued with disjointed business units that fail to understand the relationship between two separate units within the organizations. This faulty organizational structure has not only severely hampered Zara’s ability to garner synergies among its business units but also has become the source of lost revenue due to inefficiencies and wastages. Finally, the culture of making important business decisions within Zara by its management based off of gut feeling rather than a well analyzed business information, patterns and statistical method, greatly dangers Zara’s competitive advantages over its competitors. I would recommend Zara to tackle its two biggest problems– a) absence of modern technological infrastructure and b) lack of collecting, storing and sharing infrastructure needed to generate vital business information to make quality decisions. This recommendation entails the use of Windows based new POS system for all the Zara stores. Also, the use of cloud computing to collectively store all its data that could be used in generation vital business information. Furthermore, I would recommend the use of tablets instead of handheld computers to increase efficiency and communication capability in all of Zara stores. I would broadly divide the structural problems with Zara into two categories: 1. Outdated Technological Infrastructure The biggest problem within Zara is that they lack appropriate technological infrastructures that aid in the decision making process. I absolutely disagree with Sanchez’s argument that Zara does not need to fix something, in this case its POS system, if it is not broken. He also argues that upgrading the POS systems would make it more complicated. In my analysis, Sanchez’s argument fails because he sees Zara’s current comparative advantage in various market segments as a permanent thing rather than something that is constantly changing. Secondly, by opting for simplicity, Zara is sacrificing efficiency and effectiveness. Ultimately, the absence of the suitable infrastructure that can collect, analyze and interpret data to aid Zara’s commercials, store product managers and store managers to make quality decisions, makes Zara vulnerable to fall behind its competitors. Below are the few examples, where Zara’s lack of advanced technological infrastructure hurts them and possible solutions. First, Zara’s outdated technological infrastructure is inhibiting its speed and decision making ability throughout the organization. Zara is a company that depends heavily on capitalizing on new fashion trends rather than on expensive advertising campaign. Thus, it is imperative for Zara to correctly identify new market trends and execute manufacturing orders before its competitors. But it is unlikely that commercials at Zara will be able to consistently predict the new fashion decision without analyzing relevant data to derive information and business decisions. They may guess the new fashion designs correctly few times, courtesy of their experience, but in general their prediction will miss the target more often than not. So, unless Zara updates its archaic infrastructure that can efficiently collect data, help managers develop patterns and better understand the market, they will be forced out of the market. Second, Zara’s ability to forecast and analyze its performance under various market situations is handicapped by its old infrastructure. Most businesses that are successful take into account and analyze all the possible scenarios that can affect them before making critical decisions. Usually called event-driven analysis or simply, what if analysis; it gives a business a sense of all the possible opportunities and threats out there in the market. However, a business mostly requires a large amount of data that they need to analyze in order to conduct a successful what if analysis. In Zara’s case, they lack that data gathering and sharing ability because of their old infrastructure. So for example, Zara has no clue how their revenue is going to be impacted if Benetton opens up a hundred new stores in Madrid. This is serious problem for Zara because it may be losing market share but they have no accurate way of verifying it. Furthermore, Zara’s dependence on MS-DOS based POS system is threatening its viability as a business at a store level and limiting its expansion opportunities. Mainly because Microsoft has discontinued its support for MS DOS and Zara’s suppliers aren’t willing to a long term contract that guarantees future supplies of MS DOS based POS, Zara is in a vulnerable position. Also, the situation within a Zara store, in terms data collection and sharing, is dangerously low. For example, a Zara store manager currently cannot access critical business information necessary for decision making. Even information on simple things such as the sales figure, the pattern of sales, and the number of unsold items are unavailable to the store manager. Rather a Zara store manager currently has to rely on canvassing the store to determine generate business intelligence. Similarly on the hardware side, a Zara store managers over reliance on an outdated handheld computer is putting the prospective revenue of the Zara’s business at tremendous risk. Currently, a Zara store manager uses a hand-held computer with a very small screen, probably with poor image quality, to analyze information about the new clothing designs and then decide. In an artistic industry as fashion where people care about even smallest of small details, the store managers are asked to value and to decide their portfolio of new clothes using a device that is inadequate. Furthermore, the store managers have to rely on a dial up connection, which has a host of issues frequently, to link up with the office at La Courna once every night. With the store managers facing â€Å"hard deadlines† to post their orders and they having to rely on a dial up connection to send that important order, the pressure on the store managers must be very high. Possible Solutions: First, at a store level, Zara can choose from Windows, Unix or Linux based POS to replace all of its outdated MS-DOS based POS. In my analysis, a new POS based on Windows OS is the best solution for Zara’s current needs. First, the regular OS upgrades provided by Microsoft eliminate Zara’s concern about its OS being outdated. Zara can also leverage Microsoft’s variety of well tested software packages to aid in the collection, storage, analysis and interpretation of business information. Furthermore, with windows Live software such as SkyDrive, individual Zara store can store all its vital data in the cloud and share it among commercials and store product managers in different locations. Also, one benefit of using Microsoft OS is that almost all big software developers use MS OS as their primary platform. This ensures that Zara will not be disadvantaged due to incompatibility of major software. While on the other hand, licensing and maintaining fees for Windows can be expensive. Also, the issue with security may be a big concern for Zara as it uses Microsoft OS which has a history of being vulnerable to hacking, virus infection and so on. Second, Zara should upgrade to new POS terminals rather than reprogramming the new OS to fit the old hardware. First, there can be a problem if old hardware is not compatible with the new OS despite re-writing and customizing the new OS. Furthermore, the old hardware may fail to fully utilize the capabilities of the new OS system. More importantly, it may be faster for Zara to replace all the POS than reqrite the program for the old hardware. But the criteria for the new POS system should be that it should be able to store and communicate data to the central office at La Courna and to the store manager. Finally, an android based over an iOS based tablet could be a reasonable alternative to the current use of handheld computers. Because android tablets are more compatible with the Windows OS, which was the OS of choice for Zara, I would recommend an android tablet. Also, android tablets provide Zara store managers the ability to access critical business information from the cloud and easily communicate with the central office to place orders, evaluate new fashion designs, and send or receive critical business information from La Courna. Also, these tablets are compatible with a host of different spreadsheet and document applications that a Zara store manager could rely on to get vital business information before making purchase decisions. 2. Bad Business Practice: Random Decision Making, a Culture inside Zara. In my analysis, the culture inside Zara of allowing lower management to take important decisions such as production schedule and stock distribution based on their gut feeling and yet not checked by senior management, is simply too dangerous. Any business management student can attest that delegation of higher responsibilities to junior staff members and independent decision making is positively correlated with higher performance and returns, and I am all up for it too. However, research also has shown that in terms of decision making, the best decisions are made when experiences of managers are combined with their analysis of business information. While currently in Zara, decisions are solely based off of experience with no use of business information to draw inferences about pattern and trends. The primary two problems with such method are that those decisions tend to random and also, heavily biased towards personal preference and beliefs. A company like Zara cannot afford bad decision when its comparative advantage lies in producing clothes of the future. Below are the few examples of random decision making within Zara which have resulted in wastage and time lag and possible solutions to eradicate them. First, the decisions about Zara’s production based on random experiences can be very costly. Currently Zara’s store product managers, who decide what new design is approved in Zara, largely rely on their random observations of what people are wearing and conversations with Zara store managers to predict the next big fashion hit. However, decision making on the basis of experience alone tends to produce more misses that hits. And for a company like Zara which heavily depends on rapid production of latest fashionable clothes, â€Å"fashion misses† can be extremely costly. The ideal situation would be to allow business managers to combine their experience with valuable business information to derive business strategies and then apply them to decisions about future fashion trends. Similarly, the approach of commercials within Zara to decide the allocation of replenishment, highly demanded clothes in SKUs or DCs and most importantly, newly designed clothes is misguided. The current practice within Zara regarding allocation is to divide the available stock among all the Zara stores who wanted it. The critical problem with this approach is that it ignores the concept of opportunity cost. For example, let’s assume that using a detailed analysis, a commercial within Zara concludes that a piece of clothing â€Å"A† is highly demanded in London than in Bahrain. With this information the Zara commercial can push clothing â€Å"A† completely towards stores in London where it is highly demanded at the expense of stores in Bahrain. Rather than allocating among all stores, the approach of using business information to decide which stores have higher opportunity will be better for Zara’s bottom-line. Conversely, when the demand for the clothes exceed supply the Zara’s commercials allocated by looking at past performances and previous supply records. Although, this method is significantly better than the simple allocation, it could be much better if the commercials used further scenario analysis using previous business information to check if the success of the stores were a one off events or whether previously unsuccessful stores have turned a corner. Possible solutions: Zara’s main problem stems from its lack of infrastructure that is able to collect, store and communicate data so that all the responsible individuals within Zara can use it to make good individual decisions. Among the myriad of a Network options with the aforementioned capability, In my analysis, could computing is ideal for Zara. The advantages associated with using the cloud is its scalability. In the near future, Zara aims to expand its stores and its operations to new locations all across the globe. With a cloud based software the increased need to collect, store and share data within the Zara network will be as easy as buying extra space from the a cloud hosting services. In addition, cloud computing almost infinite amount of storage to store and backup data. This will be ideal for Zara who has a large number of store spread across many continents. Furthermore, unlike a distributed network, with cloud computing Zara store managers, commercials and store product managers can share common application software directly from the cloud without having to purchase or physically transport the software. However, security of the highly sensible data is a big concern when using cloud computing. Unlike a distributive network, there remains a threat that a close competitor in the industry unfairly accesses critical business information such as Zara’s new clothes design or cost of production, supplier’s list, when using cloud computing. Final Recommendation: My final recommendation for Zara aims to tackle two big problems within Zara – a) absence of technological infrastructure and b) lack of collecting, storing and sharing vital business information to make quality decisions. My first recommendation for Zara is to build a sophisticated technological infrastructure across the company. Zara should replace its old MS DOS based POS with a Windows based POS with advanced features such as touch screens, bar code reader and credit card to increase the overall efficiency and speed of transaction. Also, the development of a customized software that automatically stores detailed data about the transaction such as type of design, time (days, months), and cost automatically from the POS system and saves it in a cloud space. Also, I would recommend the use of tablet, preferably android, for individual store managers so that they can have easy access to vital business information in real time and also be able to communicate with the central office and DCs. Furthermore, I would even suggest providing tablets to all commercials and store product managers so that they can have access to specific and vital information about all aspect of the business directly from the cloud. The analysis and interpretation of all the information will enable them to making production, future design decisions, and allocation decisions. My second recommendation for Zara would be to subscribe to a cloud computing service provider in order to store all relevant data from all its stores, its DCs and SKUs. Also, I would suggest Zara to build customized software that has the capability to correctly organize relevant data into different categories according to specific need of different management levels within Zara. Regarding the security issues with using a cloud computing, Zara can enforce cloud storage access password on the basis of seniority in the management hierarchy. So for example, a temporary sub-store manager cannot access the future clothes design for Zara while a commercial has a full access. However, I would not recommend Zara to get involved in selling clothes online. Zara’s comparative advantage lies selling clothes through it well designed and strategically located stores that span all over the world. Thus, unless Zara can build up huge storage and distribution centers, hire e-commerce specialists and figure out a new business model, I wouldn’t suggest Zara to go online. Within the current organizational framework, going online would do more harm than good. The implementation of these two recommendations will insure that all the members of the management team have all the vital business information in real time in order to make an informed decision. Also, it will insure that Zara’s stores serves dual function efficiently serving customer and also providing important data back to the head office in Spain. ——————————————– [ 1 ]. Stock Keeping Unit [ 2 ]. Distribution Centers

Education For Children With Disabilities Education Essay

It is estimated that there are 500-650 million individuals with disablements in the universe, about 10 % of the universe population, 150 million of whom are kids. More than 80 % unrecorded in developing states with small or no entree to services. The bulk of kids with disablements, in developing states remain out of school and are wholly illiterate.[ 1 ]This is the information provided by UN Committee on the Rights of the Child, which provides us with an thought of how large is the issue refering right to instruction of the kids with disablements. Even though bulk of the provinces have ratified assorted international human rights instruments, many of them fail to guarantee to carry through all the duties prescribed under international human rights jurisprudence instruments. I will turn to following job on illustration of Georgia. Are handicapped kids ‘s instruction rights protected in equal manner as of kids without disablements in Georgia? What are the chief jobs of implementi ng human rights instruments ‘ commissariats and what has to be done in order to give kids with disablements equal opportunity to bask their educational rights? And is inclusive instruction solution to the job? Right to instruction has been enshrined in several human rights instruments such as: The 1948 Universal Declaration of Human Rights ( Art.26 ) ; The International Covenant on Economic, Social and Cultural Rights ( Art.13 ) ; Convention on the Rights of the Child ( Art. 28 ) ; Convention on the Rights of Persons with Disabilities ( Art.24 ) etc. All the above mentioned instruments underscore the rule of non-discrimination and equality in the right of instruction. Hence, kids with disablements are entitled to the same educational rights as others. When turn toing this issue I will chiefly discourse right to instruction of the kids with disablements under the Convention on the Rights of the Child ( CRC ) , as it is the major human rights instrument refering kids ‘s rights in general. Article 28 of Convention on the Rights of the Child provides that provinces parties recognize the right of a kid to instruction on the footing of equal chance, doing primary instruction compulsory and available free to all[ 2 ]. The undermentioned article underscores that everyone has equal chance to have assorted degrees of instruction, but foremost and first importance of compulsory primary instruction and its handiness for free of charge. Article 29 of CRC states the purposes of instruction, such as â€Å" development of kid ‘s personality, endowments and mental and physical abilities to their fullest possible [ aˆÂ ¦ ] † Article 2 of CRC is associating to equality and non-discrimination rule including guaranting and este eming rights of handicapped kids without any favoritism on the evidences of disablement. Among the above mentioned commissariats, article chiefly with respect to the rights of handicapped kids is Article 23 of CRC, which once more high spots that province parties have to guarantee handicapped kid ‘s effectual entree to instruction ( Art.23 ( 3 ) ) . In 2006 The Committee on the Rights of the Child has adopted its General Comment No 9 on the topic of the rights of kids with disablements, turn toing some nucleus affairs refering rights of handicapped kids, nucleus duties of province parties, general steps of execution of the Convention etc. In the undermentioned remark Committee among other issues underlines the significance of rights of instruction of kids with disablements. Committee addresses the importance of inclusive instruction. Inclusive instruction should be the end of educating kids with disablements. The mode and signifier of inclusion must be dictated by the single educational demands of the kid, since the instruction of some kids with disablements requires a sort of support which may non be readily available in the regular school system.[ 3 ]The same rule of inclusive instruction is besides provided in the Implementation Handbook of the Convention on the Rights of the Child prepared by UNICEF. Harmonizing to the Handb ook â€Å" the instruction of handicapped kids should be provided â€Å" in a mode conductive to the kid ‘s accomplishing the fullest possible societal integrating ( Article 23 ( 3 ) ) which means that handicapped kids should, wherever possible, be educated in mainstream schools alongside with kids without disablements. †[ 4 ] Even though rule of inclusive instruction is seen by UN human rights organic structures as a solution for bettering enjoyment of right to instruction of handicapped kids, some look on this facet from more deep position. For illustration Marcia H. Rioux and Paola C. Pinto in their recent article reference this issue, harmonizing to them: â€Å" Even when, in more recent decennaries, inclusion has become the mantra of instruction systems worldwide, the disagreement between normative models and the resources available on the land to recognize the right to education for all has frequently created new signifiers of marginalisation and exclusion along ability lines. Indeed, acquiring kids with disablements in schools is non plenty. If inclusion merely changes the location of the schooling of the kid but the negative stereotyping persists, so the outlooks for that kid ‘s acquisition will go on to be less than for other pupils. It makes a parody of inclusion. Bing ‘in ‘ a schoolroom, but non an integrated and equal participant in the really cloth of larning contradicts the intent of schooling. This is what is sometimes characterized as soft inclusion – inclusion that addresses topographic point but non the substance of larning. †[ 5 ]These writers emphasize, that â€Å" A rights attack to instruction, by contrast, highlights the demand for a holistic position, necessitating a model that takes into consideration non merely the right of entree to education throughout all phases of childhood and beyond, but besides the right of quality instruction and the right to esteem in the acquisition environment. †[ 6 ] The equality, non-discrimination and integrating of handicapped kids in the mainstream instruction, are the precedence issues on human rights docket in Georgia. Since confirmation of Convention on the Rights of the Child on June 2 of 1994, Georgia has submitted three studies to the Committee. These studies give clear thought about the jobs in the procedure of implementing equality and non-discrimination rules in respects of instruction of handicapped kids. The coverage process shows what the spread of implementing CRC on national degree are. The 2nd periodic province party study provides with more or less elaborate information refering right to instruction of handicapped kids. Harmonizing to information provided by the Ministry of Education of Georgia, there are 20 particular residential schools for mentally and physically handicapped kids under its legal power. There are two places for handicapped kids under the legal power of the Ministry of Labour, Health and Social Welfare, lodging a sum of 157 kids. The Ministry of Labour, Health and Social Welfare has besides prepared a programme for the nationwide reform of the system of commiting handicapped kids. The Ministry of Labour, Health and Social Welfare points out that, non with standing certain betterments in recent old ages in the budget support of institutional constitutions, this programme is still underfunded. It is unable to supply full support for rehabilitation work, peculiarly that of a societal nature, which in bend earnestly hampers the undertaking of incorpo rating handicapped kids into society. The programme aims to guarantee a significant betterment in the chances available to kids in this class for psychological, educational and societal rehabilitation.[ 7 ]In response to this study, Committee published its Concluding Observation in 2003, supplying some recommendations in respects of right to instruction of kids with disablements. More exactly, The Committee is concerned that the right to non-discrimination is non yet to the full reflected in the State party ‘s statute law, policies and programmes at the national and local degrees.[ 8 ]The Committee remains concerned that kids with disablements remain outside mainstream instruction and are marginalized in society.[ 9 ]The Committee recommends the province party to take the necessary steps to incorporate kids with disablements in the mainstream instruction system and society.[ 10 ] The latest study submitted to the Committee by Georgia was in 2007. State party provides with following information, that The NGO â€Å" Children of Georgia † in coaction with UNICEF undertook an appraisal of handicapped institutionalised kids and their capacity for reintegration, and of handicapped kids populating with their households. New methods for measuring handicapped kids were developed and adapted to the Georgian context. Based on this appraisal, a scheme for reintegration and inclusive instruction will be developed.[ 11 ]Harmonizing to the Ministry of Labour, Health and Social Affairs of Georgia, a national policy refering the handicapped kids is reflected in the determination of the Parliament of Georgia of 13 February 2004 sing the chief waies of the societal policy aimed at protecting the rights of handicapped kids, above mentioned papers includes precedence issues such as: a ) harmonisation of the Georgian statute law with the norms and criterions provided for by international conventions ; B ) inclusive and incorporate instruction.[ 12 ]Harmonizing to the Ministry of Education and Science, until late, there were few options to institutional attention or instruction in particular schools for kids with disablements in Georgia. However, the state of affairs has changed with the passage of a new Law on general instruction, which stipulates in paragraph 4 of its article 31 that â€Å" general educational establishments are authorized to make conditions for inclusive instruction † . This proviso has created an unprecedented chance for Georgia to cut down the demand for institutionalization that frequently was the lone option for kids with disablements.[ 13 ]Based on this statute law, pilot undertakings on inclusive instruction have been launched in 10 Tbilisi schools with the position to affecting kids with particular demands in the instruction procedure. Monitoring of these undertakings has shown that due to inclusive instruction sociall y isolated, alienated and handicapped kids are going more incorporate into society.[ 14 ]Sing 3rd periodic study of the province of Georgia, the Committee adopted its Concluding Observation in 2008. The Committee is still concerned that, despite the Constitutional and other warrants, the rule of non-discrimination is non to the full respected in pattern with certain groups of kids, including kids with disablements.[ 15 ]The Committee recommends that the State party addition its attempts to supervise and guarantee execution of bing Torahs vouching the rule of non-discrimination and full conformity with article 2 of the Convention.[ 16 ]The Committee recommends province party among other issues to see: a ) signing the Convention on the Rights of Persons with Disabilities and its Optional Protocol ; degree Celsiuss ) pursue attempts to guarantee that kids with disablements may exert their right to education to the maximal extent possible.[ 17 ] As we see from the illustration of Georgia, Georgia still faces many jobs in respects to fulfillment of its nucleus duties on the topic of the right to instruction of handicapped kids. I agree with the thought that, â€Å" It continues to be a slow procedure for the acknowledgment of the right to instruction for kids with disablements to go recognized and implemented. There is an pressing demand to supervise the systemic conditions that have led to the disagreement between policy and pattern, between theory and execution. There is a farther demand to disaggregate informations in order to do seeable the favoritism and exclusion of many kids with disablements, to develop new policies that target people with disablements and to mensurate the advancement towards cosmopolitan instruction † .[ 18 ]Georgia still has to take more stairss such as: adopt and enforce national statute law in respects of handicapped people ; sign and implement the Convention on the Rights of Peoples with D isabilities ; raise financess on instruction of handicapped kids ; have more cooperation with international human rights organisations ; do schools accessible for kids with disablements, promote public consciousness that disabled kids are portion of the society, train school staff and instructors, etc. Georgia has merely to esteem, protect and carry through right to instruction of kids with disablements. Solving all of these issues is non a myth, but world, negative facet is, unluckily it takes long clip.

My Life Transforming Philosophy For Last 10 Years - 980 Words

Hi, good afternoon everyone. First of all, congratulation to all the bright shining WDs present here for all their efforts. For many I am a new face so let me introduce myself I am Shraddha following this wonderful life transforming philosophy for last 10 years. Thankful to my friend Vaishali who introduce me to this faith in Delhi and from last 8 years I have been practicing wholeheartedly in Dubai. My family got PR in July 2015. It’s difficult to uproot from a place where you were living comfortably for so many years. Sensei encouraged a man who has no choice but to move from Iwaki after The Johan coalfield closed-â€Å"I fully understand the difficulty of having to leave a place you’re familiar with and the members you care about. But the place where you are moving to will become your new place of mission, to carry out Kossen -rufu.† So I am just following my mission in this country and my heart is full of joy to share few of my victories in past 4 months. Me and my younger son utkarsh shifted to Canada from Dubai in Dec 2015. My husband who was primary applicant came to drop my elder son harsh in Sep2015 and stayed for a week only. During his stay he came to know about a house just next to my friend’s house was on sale. He visited there and booked it with some initial payment. So I must say benefit was moving ahead of me. My heart filled with appreciation to the gohonzon. I express immense gratitude to my friend and her family for all support and initial guidance with whomShow MoreRelatedFactors Affecting Nigerias Underdevelopment1435 Words   |  6 Pagesis regarded as developed when such increase is affecting the living condition of its people even to the smallest group in the society. Where we don’t only calculate numbers and figures and structures but can see the positive change of things in the life of the people, both the rich, average and poor. Then such a society would be regarded as developed. 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