Case study McDonalds Business Plan

Case study McDonalds Business Plan In view of the current issues facing the company as well as the result of the SWOT analysis and Porters Five Forces Analysis, McDonalds may find it compelling to enter new offshore markets. Consequently, the Asia-Pacific region, more particularly China has been considered a promising market for McDonalds. The SWOT analysis revealed that McDonalds has the internal capabilities to enter new market and that external threats make it imperative for the company to enter new markets. In addition, Porters Five Forces Analysis also confirms that McDonalds initiative to expand to China could benefit the company to a large extent. Finally, the PESTEL Analysis also suggest that China is potentially a good new market for McDonalds. 1.0 Introduction A news article by Nicholas (2010) featured McDonalds voluntary recall of tumblers sold in its store. As revealed in the article, the tumblers were sold at McDonalds as part of the promotional tie up with a new film. According to the news article, the tumblers contained cadmium, which is a toxic substance that is extremely dangerous to the developmental health of children (Nicholas 2010). In response to the issue, the Consumer Product Safety Commission called on fast food companies for a stricter and thorough review of domestic and international supply chains in order to prevent products with potentially dangerous elements to reach its stores (Nicholas 2010). Consequently, this issue could add to the list of challenges being faced by the company. To recall, McDonalds has also been held responsible for obesity among children in the US and the UK (Kilkenny, 2010), which may so far be considered as the most disastrous issue facing the company. In view of the issues facing the company, Mc Donalds may find it vital to launch new business initiatives. This paper presents a business plan for McDonalds, which centers on the strategic issues facing the company and on the result of the SWOT (strengths, weaknesses, opportunities, and threats) Analysis, Porters Five Forces Analysis, and PESTEL (political, economic, social, technological, environmental, and legal) Analysis conducted on the company. 2.0 McDonalds Company: Business Overview According to Adams (2007), McDonalds is a popular destination for fifty million customers every day, making the company one of the largest fast food restaurants in the world. McDonalds is considered as the worlds leading fast-food Company in terms of revenues and number of restaurants. At present, there are about 32,500 McDonalds stores in over 100 countries across the globe, employing a total of 385,000 employees worldwide (McDonalds 2010). The company is headquartered in Oak Brook, Illinois, but its operations span from the United States to Europe to the Middle East and to the Asia Pacific region (McDonalds 2010). McDonalds stores sell a standardized menu, but there are slight variations depending on the country where the store operates. For example, aside from its standard menu, McDonalds sell coconut water in Brazil, rice burgers in Taiwan, and porridge in the UK to suit the local taste of the customers (Adams 2007). The key or standard products served at McDonalds stores include hamburgers and cheeseburgers, chicken sandwiches, French fries, wraps, chicken nuggets, salads, desserts, sundaes, soft served cones, pies, as well as cookies. Furthermore, McDonalds also serves a wide range of beverages including milk shakes, soft drinks, coffee, and flavored tea. In addition, McDonalds also sells breakfast items especially in the US and many international markets, whereby breakfast offerings include muffins, biscuits, hotcakes, and bagel sandwiches. McDonalds markets its products under the following global brands: Big Mac, Big N Tasty, Filet-O-Fish, McNuggets, McFlurry, McMuffin, and the McGriddle s (McDonalds, 2010). McDonalds Head Quarters 3.0 SWOT Analysis 3.1 Strengths Strong Brand: As mentioned in Leong and Lwin (2006) brands are valuable symbols that magnify the image of the company. In the case of McDonalds, strong brands may be considered one of the greatest strengths of the company. As a proof, McDonalds was included in the list of the best global brands in the annual ranking of the Business Week magazine for 2009 (Holbrook, 2009). In relation, McDonalds brand equity for 2009 was valued at around $32,000 million (Holbrook, 2009). As a strong global brand, McDonalds is very well known in the informal-eating out market in almost all countries where it operates. Strong Global Presence: Aside from a strong brand, McDonalds strong global, diversified presence may also be considered a major strength of the company. At present, McDonalds has more than 32,000 stores in key geographic locations, such as, the US, Europe, Asia Pacific, Middle East, and Africa (McDonalds, 2010). Furthermore, McDonalds operations span across 118 countries across the globe (McDonalds 2010). Consequently, McDonalds operations tend to be relatively larger compared to rivals. Large Scale of Operation and Product Customization: Given that McDonalds is the worlds largest food service retailing chain, it could leverage on its size to compete effectively in the market. Furthermore, McDonalds has bigger economies of scale in terms of sales or revenues to compete with rivals. For example in fiscal year 2009, McDonalds generated revenues totaling to $22,744.7 million, which is significantly higher compared to the revenues of Wendys ($3,580.8 million) and Burger King Corporation ($2,537.8 million). Low-Cost Foods: McDonalds has been popular in the market due to its dollar menu, which includes fruit and yogurt parfait, cheeseburger, and fries (Dunlop, 2009). McDonalds low cost food has been considered a major strength to the extent that the company still managed to increase sales by 6.8 percent over the previous year in spite of the economic downturn. Aside from the regular menu, McDonalds also sell specialty coffee such as those sold at Starbucks but a lower cost. To illustrate, Huglett (2009) noted that prices of espresso-based coffee sold at McDonalds costs about 75 cents cheaper than Starbucks coffee. Generally, Holbrook (2009) noted that fast food companies flourished even in a struggling economy due to its cheap menu items. Good Community Reputation: McDonalds sponsors the Ronald McDonald House of Charities, which is an integral aspect of the companys corporate social responsibility programs. As part of the program, McDonalds sponsors various community outreach programs that aim to benefit children especially those who come from poor families in various communities where McDonalds operates (Adams, 2009). For example, the Ronald McDonald Care Mobile aims to provide free screenings and treatments to children all around the United States (McDonalds, 2010). McDonalds corporate social responsibility program has helped create a positive company image. McDonalds mascot, Ronald McDonald has become a symbol of goodwill among customers, most especially to the children. Progressive External Orientation: As part of the companys commitment to total customer satisfaction, McDonalds offers free Wi-Fi services in over 15,000 stores across the globe (McDonalds, 2010). The free Wi-Fi access is intended to meet the personal and professional needs of McDonalds customers (McDonalds, 2010). 3.2 Weaknesses Health Issues: One of the weaknesses of McDonalds is that its core products were considered unhealthy (Adams, 2009). For example, McDonalds French fries was feared to have more Trans fat, which could cause obesity among consumers. Legal Suits Filed Against the Company: McDonalds is party to several litigations around the world. McDonalds have faced charges of violation of state consumer fraud acts, unfair competition or deceptive trade practices acts, strict liability, failure to warn, negligence, breach of express and implied warranties, fraud and fraudulent concealment, negligent misrepresentation and concealment, unjust enrichment, and false advertising (Brown, 2003). Additionally, McDonalds have admitted to 20 offenses of illegally employing children aged 15 and 16 at two restaurants in Surrey, UK (Brown, 2003). Furthermore, the company also received more than 2,750 recorded customer complaints of food poisoning a year (Brown, 2003). Consequently, these issues have tarnished McDonalds reputation in the market. 3.3 Opportunities Adding Healthy Food Options: Studies reveal that consumers are becoming more particular of the health implications of their consumption, whereby consumers now tend to demand healthy food options (Taylor, 2006). For McDonalds, this trend could create an opportunity for McDonalds to expand its menu to include healthy food varieties such as salads and fruits. Improving the Transaction and Service Delivery Processes: Improvements in technology provide a way for more efficient ordering and paying processes. Technologies that could improve transactions at fast food restaurants include the following: touch-screen ordering system, which makes order taking faster and more efficient; timing systems, which aims to monitor meal progress and hence ensure that orders are delivered accordingly; reservation systems, which aims to maintain good flow of traffic within the restaurant; inventory management system, which allows restaurants to effectively track supply levels and reduce wastes from over stocking and spoilage; and hand-held point of sale devices, which allows servers to place orders and print checks at the tableside. 3.4 Threats Slowing Economy: As mentioned in Horovitz (2009), businesses, including fast food restaurants are vulnerable to economic downturns. Generally, the economic slow down has negative implications to the business reflected in slightly depressed sales growth of restaurants. Consumer Eating Out Less: Surveys reveal that consumers are beginning to eat out less relevant to the economic downturn. In relation, a survey conducted by the Nielsen Company revealed that about 46 percent of American households have begun to eat out less (Panian, 2010). Increasing Competition: Competition in the fast food industry has intensified over time, thereby putting pressure on McDonalds. McDonalds does not only compete with rival companies in the industry, but also with formal restaurants and easy-prepare meals sold at supermarkets (Zwolak, 2010). Increasing Regulations: The fast food industry is under strict regulation from the government due to health issues associated to products sold at fast food restaurants. For example, some states in the US have required fast food restaurants to print calorie and nutrition information on their menu and at the same time placed restrictions on selling snack food and soda (Hirsh, 2009). 4.0 Industry Analysis 4.1 Size and Growth According to Data Monitor industry report, the US fast food market generated total revenues of $68.2 billion in 2008, equivalent to a compound annual growth rate of 5.5% for the periods between 2004 to 2008. Furthermore, the industry is highly fragmented, with the four top players holding only 35 percent of the available market share (Zwolak, 2010). Furthermore, 48 percent of establishments are small business operators with nine or fewer employees, while the other 52 percent have between 10 and 99 employees. 4.2 Trends The fast food industry is in the mature phase of its industry life cycle (Zwolak 2010). In this regard, growth may still be expected but at a slower pace and has the possibility of reaching saturation point in the domestic market. For the fast food industry, annual growth is expected to be around 2.5% over the next five years (Zwolak, 2010). 5.0 Porters Five Forces Analysis 5.1 Buyer Power Buyer power is assessed as moderate to the extent that buyer power within the fast food market is weakened by the fact that while not everyone enjoys fast food, large numbers of people are patronizing fast food. Buyer power is strong as such fast food companies are compelled to offer low prizing scheme. 5.2 Supplier Power Supplier power is assessed as strong to the extent that the supplier market is quite consolidated whereby few supply companies have substantial market shares and have other customers in the cost foodservice sector and in other segments of the profit food sector, hence decreases their dependence on fast food companies. 5.3 New Entrants Entry to the fast food market does not require huge capital outlay, allowing small business owners to establish single, independent fast food outlets. Furthermore, franchising agreements are common in the industry. As a proof, franchisees run the majority of McDonalds outlets in the US. In this regard, there is a strong likelihood of new entrants. 5.4 Substitutes Generally, substitutes present a strong threat to companies operating in the fast food industry. At present, substitutes for fast food include other forms of profit food service, and also food retail such as ready meals or easy-to-prepare meals (i.e., frozen meals) for home cooking. 5.5 Rivalry Rivalry in the fast food industry is relatively strong, given that the industry is highly fragmented. As mentioned before, the top four players in the industry hold only 35 percent of the total market share. 6.0 Business Expansion Plan: Entering New Market In view of the current issues facing the company as well as the result of the SWOT analysis and Porters Five Forces Analysis, McDonalds may find it compelling to enter new offshore markets. Consequently, the Asia-Pacific region, more particularly China has been considered a promising market for McDonalds. In relation, the Data Monitor market research found that the Asia-Pacific fast food market has posted strong, generating total revenues of $47.1 billion in 2008, equivalent to a compound annual growth rate of 10.3 percent for the period spanning 2004 to 2008, with the Chinese and South Korean markets having compound annual growth rates of 14.5% and 5.6% respectively. 7.0 PESTEL Analysis The PESTEL analysis will be used to validate the attractiveness of China as the target market for McDonalds. The goal of the PESTEL analysis is to analyze how political, economic, social, technological, environmental, and legal factors will interfere with the organization in entering the Chinese market. 7.1 Political Factors China adopts the open door reform policy, which aimed to decentralize the economic system and to attract overseas investment. In this regard, McDonalds would not have difficulties in entering the Chinese market, as the political structure of the economy supports foreign direct investment. 7.2 Economic Factors China is one of the fastest growing economies in the world today and growth forecasts for the subsequent years are fairly high. For McDonalds the booming economy and increasing gross and disposable income of the population in China suggest higher revenues in the future. 7.3 Social Factors The population of China was estimated at 1,328,020,000 as of 2008 and is expected to grow at a slower pace, given the one-child policy being adopted by the country. For McDonalds the large number of population in China opens opportunity for higher sales potentials. 7.4 Technological Factors Chinese government has placed significant investments on science and technology, leading to significant improvements in technology in the country. For McDonalds, improvements in technology could offer significant opportunities for businesses in managing different aspects of the business. Companies could leverage on newly introduced software to increase productivity and efficiency. 7.5 Environmental Factors The Chinese government has committed to reducing its carbon footprint in the future. In this regard, stricter environmental restrictions on businesses may be expected. 7.6 Legal Factors The Chinese labor force is highly regulated compared with other countries in the Asian region, whereby regulations are tighter for dismissing workers than on hiring. 8.0 Customer Analysis The target market segment of McDonalds in the new market includes mostly of busy, working people, to the elderly and young. Convenience may be considered as the main factor that attracts busy, working people to fast food as well as to the elderly and the young. Additionally, value for money may be considered as the greatest factor that would attract low to middle income households to fast foods. Finally, the childrens meal offered at McDonalds would appeal to children. 9.0 Competitor Analysis McDonalds major competitors in the international fast food market are: Wendys International and Yum Brands Inc. Focusing first on Wendys International, the company is engaged in the operation, development, and franchising of restaurants, operating a total of 6,645 restaurants in the US and in 19 other countries and territories (Data Monitor, 2009). Same with McDonalds, Wendys also offer a standardized menu, comprised of hamburgers and chicken sandwiches, as well as chicken nuggets, chili, baked and French fried potatoes, freshly prepared salads, milk, frosty dessert, floats, and kids meals. In FY 2008, the company reported revenues totaling to $1,822.8 million and net losses amounting to 413.6 million (Data Monitor, 2009). Meanwhile, Yum Brands Inc., similarly develops, operates, franchises, and licenses a system of restaurants. The company operates under five branded restaurant concepts, namely KFC, Pizza Hut, Taco Bell, LJS, and AW (Data Monitor, 2009). Yum Brands operates a total of 36,000 restaurants in more than 110 countries. Yum Brands generated total revenues of $11,279 million in the financial year ended December 2008, equivalent to an 8.3% compared to the previous year. 10.0 Conclusion McDonalds is considered as the worlds leading fast-food company in terms of revenues and number of restaurants. However, in view of the current issues facing the company as well as the result of the SWOT analysis and Porters Five Forces Analysis, McDonalds may find it compelling to enter new offshore markets. Consequently, the Asia-Pacific region, more particularly China has been considered a promising market for McDonalds. In relation, the PESTEL analysis confirms that China is potentially a good new market for McDonalds.

Changing Nature of Higher Education Essay

Proprietary education first appeared in the 1600’s about the same time that institutions like Harvard were being created. For much of US History these schools provided popular mass education in contrast to traditional colleges that were often reserved for the elites (Thelin, 2011). Generally, the purpose of these schools, besides profitability was to provide practical and narrowly focused training, thus filling a need not addressed by traditional education (Beaver, 2009). In addition, for-profits also became known for providing training for minorities, women, and in general, students from the lower social strata, a trend that would continue well into the 20th century (Apling, 1993). From an historical perspective, for-profits have experienced periods of relative prosperity and decline. In terms of prosperity, the peak occurred following the civil war as proprietary institutions sought to provide training for an expanding industrial sector. By 1893, there were approximately 115,748 students enrolled at for-profit schools (Beaver, 2009). On the other hand during the Progressive Era, for-profit schools were deemed unnecessary and invaluable especially if traditional schools were developed and managed efficiently. By 1972, amendments to the Higher Education Act permitted students attending for-profit schools to receive federal student-aid such as grants and loans (Thelin, 2011). Congress believed that students attending these institutions should receive an equal opportunity regardless of their disadvantaged backgrounds. As a result, it is estimated that during that year, for-profits accounted for one-half the increase in higher education’s total enrollment (Beaver, 2009). It is interesting to note that tuition levels at many for-profits are set in accordance with the typical amount of government sponsored aid available to the student, thus questions have been raised regarding the accountability of many proprietary institutions with regard to quality student learning. This paper will focus on how governmental accountability standards have transformed policies and procedures at Everest Institute a subsidiary of Corinthian Colleges. Changing Faces of Public Accountability Both public and private institutions are held accountable to the people that support them (Altbach, Berdahl, & Gumport, 2005). For public institutions their support is primarily from the public; however private institutions such as Everest are governed by their stockholders and a governing board of directors. The interests of these institutions are determined by both external and internal political policies that can create a complex system of compromises and the accommodation of several different conflicting objectives (2005). There was a point in time when the general public was not interested in how colleges and universities conducted business. However, times have since changed. Citizens now realize that their future economic, social, and cultural norms are directly influenced by higher education (Altbach, Berdahl, & Gumport, 2005). This increased awareness by citizens, politicians and law makers led to a demand for more accountability in higher education. The early accountability movement went beyond ensuring compliance with federal funding requirements. Research has shown that management fads in the world of business often time find their way into education, and perhaps some of the focus on accountability in higher education was the result of the Total Quality Management frenzy which firmly took hold in the for-profit business sector by the late 1980s and early 1990s (Castigili & Turi, 2011). Eventually, the quality process was being applied to academic settings. This process where the term quality was referred to giving the student customer a desired product at a reasonable cost (2011). Terms such as assessment, informed decision making, and continuous improvements became common terminology in academia just as they were in the business world. As a result, educational bodies of accreditation began require colleges and universities demonstrate accountability in their self-assessments. However, it was the famous 2006 Spellings Report that established higher education reform. Education Secretary Margaret Spellings and the Commission on the Future of Higher Education attempted to incorporate the concept of Total Quality Management into higher education. The Commission also sought to reprogram U. S. colleges in to providing the highest possible quality of education at the lowest possible cost (Basken, 2007). One of the most important of the commission’s recommendations was for colleges and universities to address the â€Å"inadequate transparency and accountability for measuring institutional performance† (Spellings Commission, 2006, p. 13). For many faculty members and administrators in higher education, it was the principle that was deemed contentious and not the quest for high quality (Castigili & Turi, 2011). However, before the Spellings Commission began its deliberations, the majority colleges and universities had already began to adopt cultures of assessment, and were utilizing the results of their assessments in order to improve student learning. The Spellings commission also called for accountability measures that allowed comparisons of student performance. The American Council on Education and several other groups in higher education interpreted this recommendation as a mandate for standardized testing (Basken, 2007). American colleges and universities have always been resistant to standardized testing and accountability templates because many of them feel that they do not account for the plurality of institutional missions and seem to shift the purpose of assessment from self-improvement to reporting. Standardized accountability requirements do not take into account the complexity of the education that takes place in colleges and universities and could have an impact on the overall process of higher education (Castigili & Turi, 2011). Recent efforts of U. S. olicy makers with regards to accountability in higher education have been negatively compared to the No Child Left Behind Act, which, which may educators feel led to the practice of â€Å"teaching to the test† (Cohen, 2009). If the requirement of standardized testing in higher education created the same or similar results, the impact on higher learning would be devastating. However, long before standardized testing became an issue that threatened colleges and universities, Banta (1996) as referenced in (Castigili & Turi, 2011), claimed the requirements of accountability â€Å"seem to chafe at the very soul of the academic enterprise (p. 7). â€Å" The foundation of that which Kuh (2007) referred to as â€Å"higher education’s aversion to transparency and accountability (p. 32)† could possibly be the concern that the need to report outcomes might weaken the primary purpose of assessment, which is ultimately, improving student learning. Evolution of Accountability for Corinthian Colleges According to the Corinthian Colleges website, Corinthian Colleges Inc. (CCI) provides a friendly, small campus atmosphere where dedicated staff and faculty take a personal interest in the progress of each student. The company operates 105 schools in 25 states in addition to 17 schools in Canada. CCI serves a large and growing segment of individuals seeking to acquire careers in the Health Care, Business, Criminal Justice, Transportation Technology, Maintenance, Construction Trades and Information Technology fields. With more than 17,000 employees in North America, Corinthian Colleges is committed to continue to provide quality instruction and fulfill the mission of changing student’s lives. It is the belief of CCI that consistent application of core values such as integrity, teamwork and accountability depends upon each employee making ethical decisions everyday concerning every student every time. Because of recent headlines, the image of for-profit colleges has become considerably questionable. The media and Senate hearings have reported aggressive and unethical behaviors consistent with unethical business practices. In 2011 The Government Accountability Office (GAO) issued its findings after conducting undercover testing of 15 for-profit colleges in the United States. The GAO found that 4 colleges promoted and encouraged its admission representatives to engage in fraudulent practices (De Vise, 2011). The GAO reported that all of the 15 colleges made false or misleading statements to undercover applicants. The misleading statements were directly related to potential, earnings, financial aid, and student loan repayments. Undercover investigators stated that many of them engaged in substandard academic performance that would have almost certainly resulted in censure at any other institution (De Vise, 2011). There were also reports of students cutting classes, plagiarism, missed assignments, and incorrect assignments being submitted for full credit. Everest was one of 15 for-profit colleges cited by the GAO for deceptive or questionable statements that were made to undercover investigators posing as applicants. Two unnamed campuses were cited in this report (Lewin, 2011). Additionally, the U. S. Department of Education statistics indicated that Everest College graduates had the highest default rate of any school in California for students entering repayment in 2010 (U. S. Department of Education, 2010). It is unclear if Everest North Miami was one of the campuses cited in the GAO report, however, the results of the report led to swift and immediate change in the way the campus operated. Three primary areas received the most attention. First, admissions officers and career services representatives were required to participate in a mandatory training that dealt with how to properly converse with students when speaking about enrollment and placement. Program Directors and a representative from Financial Aid, Admissions, and Career Services were required to attend daily at-risk meetings in order to decrease student absences and also provide administrators with an overall picture of those student who were at risk so that budgetary forecasting could be more accurate and less inflated. Lastly, Career Services Representatives were required to spend more time in the field recruiting new business that would be willing to hire students following graduation. They were also required to take additional training regarding placement rate reporting. Managing Gainful Employment and Placement at Everest Current law requires that private sector institutions prepare students for â€Å"gainful employment in a recognized occupation. † In other words, graduates from these institutions must be able to get jobs in their respective fields of study, or the school may risk losing their accreditation. Newly introduced standards would require that student borrowing and loan repayment be regulated to ensure that students are not loaded up with federal and high cost private loans and debt that many students are unlikely to ever repay. Students at for-profit colleges make up 12 percent of those in higher education, but almost half of those who default on student loans (Lewin, 2011). The alarming number of students that have defaulted on their student loans was the catalyst the led to this sweeping legislation. According to Stratford (2012), the cohort default rate is the percentage of borrowers who default on their student loans due to their inability to make payments. Nelson (2012) pointed out that over 9 percent of all students that borrow money to pay for their education, default on their loans in the first two years after they begin to make repayment. The research also noted that 13. 4 percent of student default within the first three years of repayment (2012). Examining gainful employment at any institution is important because it has a direct connection to the cohort default rate. If students are unable to secure meaningful career opportunities following graduation, then they are unable to afford student loan repayments. This is of a major concern not only to legislators, but also to the general public since student loans are funded by the taxpayer. Thus, there has been an increase for accountability for all schools who receive federal financial aid dollars. There is also a concern for the school because default rates are a factor in the institutions eligibility to receive federal student-aid (Stratford, 2012). This is increasingly important for small proprietary schools such as Everest since over 90 percent of proprietary schools revenues are generated through federal student-aid programs such as Stafford loans (Ausik, 2011). Under the new regulations, aimed to reign in for-profit education programs that saddle students with more loan debt than they can pay, programs that receive students’ federal grants and loans because they â€Å"prepare students for gainful employment† will have to pass at least one of three tests: 1) a student loan repayment of at least 35 percent; 2) a ratio of no more than 30 percent between debt that must be repaid each year and annual discretionary income; 3) a ratio of no more than 12 percent between debt and overall income (De Vise, 2011). The new rules take a â€Å"three strikes and you’re out† approach. The first time a program fails to meet all three criteria, it would have to develop and report how much it missed the benchmarks and what it will do to improve. The second time, it would have to warn student that they may not be able to repay their debt and that the program could lose its eligibility. However, a third strike within the four year period would result in the loss of the ability to offer federal student aid (Lewin, 2011). In order to improve placement rates, Everest Institute required that a Career Service Advisor be present at each daily at-risk meeting in order to discuss student placement rates and also to identify with the Program Director those students that were close to graduation. Additionally, each advisor was required to make initial contact with the prospective graduate at the start of their last semester or module in order to develop a relationship with the student and begin developing a job placement plan. The Career Services Department was required to interact more with the Program Directors and gain contact information of students that recently graduated, however, had not been placed. The advisor was responsible for developing a post-graduate placement plan for the student and reviewing the plan with the student on a weekly basis and tracking their individual progress. By assisting student to secure gainful employment, it provides them with a solid financial source of income to repay their student loans. Everest understands the importance of successfully placing student in careers that related to the major course of study. As more students are employed and able to repay their debt to the federal government, the cohort default rate for the institution will begin to decrease. Additionally, the success of the institution will help to increase student enrollments through the appropriate reporting mechanisms. These new initiatives help to create a positive environment where transparency and integrity are valued not only by the staff but also by the students that are being served. Mission and Future Implications Corinthian Colleges is currently undergoing changes within the organization in order to comply with new regulations from several external and government bodies. These and other mandates come as no surprise to the industry as several for-profit private institutions have allegedly been involved in unethical behaviors and practices. The leaders of these organizations are now forced to not only monitor performance and outcomes but to ensure that business is being conducted the right way. It is imperative that the leaders of the organization have a clear understanding of the dynamics of the organization in order to meet the immediate demands of the government. It is evident that Corinthian Colleges understands the urgency of the issue and measures are daily implemented in order to be in compliance. The process by which the organization chooses to disseminate the new policies will determine the success of change implementation. Change is difficult but necessary to achieve success. The Government is not suggesting but mandating that certain practices be overhauled, revised, and improved. Conclusion Despite the newly introduced demands from the Federal Government, Corinthian Colleges is committed to deliver their promise. With strict adherence to the company’s core values of Integrity, Customer Responsiveness, Respect, Innovation, Excellence, Teamwork, Innovation, Positive Energy, and Accountability, enables the execution of the overall strategic approach to become the best career education company in the world. Corinthians Colleges understands that the goal of transparency and accountability is to enable stakeholders to obtain clear and relevant information about college and university performance. McPherson and Shellenburger (2006) warned, however, about the misuse of assessment data. They urged that â€Å"accountability data be used only to compare specific universities with their own past performances and with the performance of comparable universities† (p. 3). To compare vastly different institutions would do far more harm than good, and potentially punish less-elite colleges and universities.

Effect of Power and Politics in an Organization Essay

There are many aspects of an organization that can greatly affect their success and moral. Some of the areas that can play a key role in the organization are; power, politics, code of conduct, business intentions, objectivity, personal agendas, and organizational goals. Power and politics can have both a positive and negative affect on an organization. Businesses must make objective decisions and insure their intentions remain in line with the organization’s goals. Organizations must not allow personal agendas to interfere with their business decisions and must make sound ethical decisions. Organizational politics can have a detrimental affect on employee’s, moral, loyalty, and trust. Power and PoliticsPower can be motivators in both a positive and negative manner. Wideman, 2003, states that power is the ability to persuade others to do the following; get them to do what you want them to do, when to do it, and in the manner you want them to do it. Wideman also maintains that influence is the exercise of authority or leadership, to persuade others, and organize them to follow. The struggle of power and influence by competing groups creates politics. Some believe that the practice of politics can be cunning and deceitful, while others believe it can be a motivator with positive results. The reality is that office politics does exist in most organizations. Some issues in an organization that may create competing groups; departmental budgets, space allocations, project responsibilities, and salary adjustment (Robbins, 2001). Limited resources in an organization will also form competing groups because the gained resource of a group is always at the expense of another group or department. Competing groups require more than convincing facts in order to get management to make a decision; the group that can influence and pollute the facts of other groups will be more successful (Robbins, 2001). Office politics or effective management; some of these terminologies are used when office politics are obvious and things go wrong; â€Å"kissing up†, apple polishing, passing the buck, covering your rear, creating conflict, forming coalitions, cunning, arrogant and scheming. These are a some terminologies associated with obvious office politics with positive results; developing working relationships, encouraging change and  innovation, improving efficiency, facilitating teamwork, planning ahead, astute, and practical-minded. (Robbins 2001). Robbins, 2001, states that there are two different forms of office politics legitimate and illegitimate politics. The normal everyday politics such as â€Å"complaining to your supervisor, bypassing the chain of command, forming coalitions, obstructing organization policies or†¦Ã¢â‚¬  (Robbins 2001). Illegitimate politics are acts of sabotage, whistle-blowing, different types of protest such as group coming in to work late or not coming in at all. The negative impacts can be described by past scandals resulting in the crash of corporations, non-accountability in the accounting industry, and lack of ethical direction from boards of directors and have cost thousands of people their jobs and taken millions of peoples’ retirement funds to zero. 401k plans that held the stocks for retirement were all depleted from the unethical practices of Enron. How, with all the checks and balances that are supposedly in place within the government, did Enron happen? The answer could very possibly be greed, fear, or just following the crowd. This can be related to the politics played upon by power. On a positive side of power and politics organizations have also been found to be responsible and able to promote trust. Take Johnson & Johnson for example, when Tylenol was tampered with leaving several people ill, they did not listen to their lawyers who were trying to prevent lawsuits, they admitted there was a problem and pulled all products from off the shelves. They did not hide behind the organization shirttails’ of attorneys’, they faced up and proved to society to be trust worthy. Which in turn, they gained respect from the general public. Scandals grow larger and more intensive day-by-day for organizations. In part certain government laws have provided guidelines to follow as a check and balance for the unethical behavior amongst large organizations. Sarbanes-Oxley being one to keep company’s honest in bookkeeping and allowing documentation to be proof that the organization is doing what is ethical. This will also be a source of insurance that individuals will not loose everything like those thousands of people did in the demise of Enron. Code of Conduct, Intentions, and ObjectivityIf the employees accept gifts, the company or organization wants to make sure the employees are in compliance with the policy or law. Which is also called â€Å"Code of Conduct† and this is to ensure that employee’s decisions will not create a conflict of interest. The code strengthens standards and includes measures to protect employees from outside pressure, such a solicitation for personal affairs and the offering of gifts. Most companies have a strict code of business ethics and conduct. The code discourages employees from accepting gifts that could be seen as an attempt to manipulate business decisions. Some companies forbid their employees to accept any gifts of any value. If gifts are received or if employees are undecided about whether they can accept the gift, the incident must be reported to the manager or supervisor. â€Å"All managers should establish a written policy limiting the acceptance of gifts and entertainment to items of small value. Managers should consider creating limits, for example-an amount per time period, per vendor for accepting gifts and prohibit the acceptance of any cash gifts† (Unswerving Loyalty, 2006). Employees should be required to document or disclose to the manager, the acceptance of any gift or entertainment. However, this is not meant to stop managers from maintaining multiple business relationships with a client, as long as possible conflicts of interest are managed and disclosed. Violating the code of conduct, regarding gifts if not reported can result in punishment. The employee can be penalized and there will also be an investigation. Providing clients with a code of ethics, sets a framework for how the manager conducts their business is an important step in developing the trust and confidence necessary for a successful investment management relationship. Organizations must make sound business decisions and have good intentions. They must have processes in place in order to insure upper management remains objective. Organizations can be easily influenced by outside forces when having to hire employees, contractors, or expansion. Executives and upper management must be able to decide, when making business decisions, on whether to decision will benefit the organization as a whole or suit their  personal or future needs. Organizations of today have to deal with a high amount of turnover in their executive positions. After these positions are vacated and new individuals are appointed is when an organization may finally find information on whether their executives were making sound organization decisions or decision that benefited them and assisted with their future gains or employment. Personal Agenda and Organizational GoalsAs a society and within organizations we stand behind the shared belief in the concept of structure, the openness of our management, and building trust. Within many organizations there is an underlying search for power. People seek power within an organization through many means. Power can be based on the influences of certain groups or individuals within an organization that might be another step closer to the desired position, goal, or outcome. People have become wary of organizations. An example that surfaced this year is the scandal involving the huge insurance company named AIG. According to (Scherer, 2005), the scandal links two of the world’s richest men. According to Forbes Magazine, Buffet is the world’s second-richest person with assets of $41 billion. Greenberg is ranked 132nd in the world and 59th in the US with assets of $3.1 billion. Using a position or influence within an organization can be considered a conflict of interest. In other words, conflict of interest exists when a board member or officer personally benefits, or is perceived to personally benefit, from an activity of the organization (Colbert, 1999). Personal power is used within an organization for personal gain as well as to benefit the organization. Expertise, rational persuasion, and reference are forms of personal power used by management to control the behavior of subordinates. Possessing the knowledge and experience needed uses expertise power. Expert power is increased when subordinates are denied access to critical information or to key contact persons. Rational persuasion can be effective by gaining the trust of the subordinates. Through reverent power, subordinates are controlled because they respect, admire and want to please their managers. Organizational politics are the processes used in which individuals work  together, conflict, compete in to make decisions, evaluate information, and structure or restructure an organization. They can have both good and bad effects. Organizational politics can cause loyalty to decrease and one’s own interest to increase. Individuals may be impacted by feelings of unfairness, discontent, anxiety, and stress. They may also be less willing to share information and be more competitive. Organizational politics can also lead to productive changes and enhance the achievement of organizational goals in an organization. Legal vs. Ethical It is human nature to want to succeed and achieve. Some individuals have been fortunate to work for an organization that is respected by the community from an external perspective and feel treated and respected as a part of the organization from within. Credibility can be an important part of an organization. There are often choices that might have to be made, for many different reasons, as we have seen that can lead to the most well respected individuals and organizations to fall. Deciding on what might be in the best interest and not necessarily ethical can be a difficult decision made by one or a few. What is legal and what is ethical affect nearly every aspect of today’s life. A few examples are the use of the internet, ethics in medicine, and ethics within an organization. Putting a legal box around what is ethical conduct is a challenge that many companies face today. The processes by which the organization is operated should be ethically based. The behavior of all employees from the highest to lowest should be ethical. Their behavior should result in the most favorable outcome for all involved. All involved should be treated fairly and their rights respected. Conclusion There are many aspects of an organization, both internal and external, that will affect their success. Some of these are out of their control, but quite a few can be controlled within the organization. Organizations must insure decisions are not based on personal agendas or outside influences offering certain perks for contracts. Power and organization politics can have both a negative or positive affect on an organization. Through all the decisions an organization will make, they must  insure they do not compromise their code of conduct, code of ethics, or decrease employee moral. References Colbert, S. (1999). Conflict of interest: what it is and how to avoid it. OCD Technote. Retrieved January 28, 2007, from http://ocdweb.sc.egov.usda.gov/technotes/tn15.pdfRobbins, Stephen (2001). Organizational behavior. Upper Saddle River, NJ: Prentice HallScherer, R. (2005). A top insurance company as the new enron? Christian Science Monitor. Retrieved January 28, 2007, from http://www.globalpolicy.org/socecon/crisis/corporate/2005/0401aig.htmUnswerving Loyalty-Global Investor, (2006) http: web.ebscohost.comWideman, Max (2003, August). Power, influence & politics. Retrieved January 26, 2007, from Max’s Issacons Web site: http://www.maxwideman.com/issacons3/iac1365/index.htm

16 Memorable Quotes From Anne of Green Gables

Review memorable quotes from Anne of Green Gables to better understand its characters, themes, and plot devices. Whether you review them before you read the book, while youre reading it or afterward, youll improve your comprehension of this work by  Lucy Maud Montgomery and get better acquainted with protagonist Anne Shirley, a redheaded orphan with a wild imagination and a talent for getting into trouble.   What Anne Says About Herself Im not a bit changed--not really. Im only just pruned down and branched out. The real ME--back here--is just the same.Theres such a lot of different Annes in me. I sometimes think that is why Im such a troublesome person. If I was just the one Anne it would be ever so much more comfortable, but then it wouldnt be half so interesting.And people laugh at me because I use big words. But if you have big ideas you have to use big words to express them, havent you?When I left Queens my future seemed to stretch out before me like a straight road. I thought I could see along it for many a milestone. Now there is a bend in it. I dont know what lies around the bend, but Im going to believe that the best does. It has a fascination of its own, that bend, Marilla. Trouble and Wickedness Its so easy to be wicked without knowing it, isnt it?Its all very well to read about sorrows and imagine yourself living through them heroically, but its not so nice when you really come to have them, is it?Youd find it easier to be bad than good if you had red hair... People who havent red hair dont know what trouble is.For we pay a price for everything we get or take in this world; and although ambitions are well worth having, they are not  to be cheaply won, but exact their dues of work and self-denial, anxiety and discouragement.Next to trying and winning, the best thing is trying and failing.Marilla, isnt it nice to think that tomorrow is a new day with no mistakes in it yet? Setting the Scene The night was clear and frosty, all ebony of shadow and silver of snowy slope; big stars were shining over the silent fields; here and there the dark pointed first stood up with snow powdering their branches and the wind whistling through them.Look at that sea, girls--all silver and shadow and vision of things not seen. We couldnt enjoy its loveliness any more if we had millions of dollars and ropes of diamonds.Anne always remembered the silvery, peaceful beauty and fragrant calm of that night. It was the last night before sorrow touched her life; and no life is ever quite the same again when once that cold, sanctifying touch has been laid upon it. Miscellaneous The goblins of her fancy lurked in every shadow about her, reaching out their cold, fleshless hands to grasp the terrified small girl who had called them into being.Mrs. Lynde says that sound doctrine in the man and good housekeeping in the woman make an ideal combination for a ministers family.Isnt it splendid to think of all the things there are to find out about? It just makes me feel glad to be alive--its such an interesting world. It wouldnt be half so interesting if we know all about everything, would it? Thered be no scope for imagination then, would there? Wrapping Up Now that youve reviewed some memorable quotes from this classic, explore the novel further by learning about some of the ways the novel has been adapted over the years.