Blue flowers (Pvt.) Ltd Essay

Executive summary Blue flowers (Pvt.) Ltd is an artificial flower manufacturing company situated in Monaragala with 350 total workforces. It provides artificial flowers for local and international markets. This has five functional departments namely Purchasing, Sales and Marketing, Production, Accounting and HR. They got a decision to increase production in 14% by last year onwards and an incentive program also implemented. When the carder produces more than the original target, company granted 10%-15% additional incentive. After 6 months company had evaluate their pros and cons and results was as follows, Production increased 1st month – 20% 2nd month-30% 3rd month-32% 4th month-20% 5th month-20% 6th month-20% Lower Quality and Rejection Rate – 10%-15% After implementing this incentive program production employees complained that the reason of this problem is the slowness of other departments, and also 60% production employees were complained their objections through their Trade Unions. After that TUs called a meeting to its members. 60% employees said that this is not an incentive scheme but just another way of exploiting labor and they suggested a TU action. Then TU representatives met management and informed them that this incentive scheme is not lucrative or equitable. But management said that if they are not in a position to carter to this increase in order in the future, they are in for a heavy loss and as a result they might even consider an employee redundancy plan also. After this meeting trade unions requested some conditions also. Problem Statement In this case we can identify several Management issues which influenced for the smooth functioning of the company. Those issues as follows; Issue 1 Organization decided to increase their production and implement an incentive program for employees who had produce more than the original target given.  But they did not screen the internal and external environment before implement this production and incentive scheme. They did not done feasibility study, SWOT analysis or a PESTEL. Issue 2 There was no any awareness program for employees about those production targets and incentive schemes. There was no any target group identification or Job evaluation. Incentive was given without any Performance evaluation therefore other department people (Other than Production dept.) were enjoyed more of this incentive scheme. Issue 3 Incentive scheme was not lucrative and not equitable. And also it was not conducted in a proper manner. Lower level workers were not reaping any benefits of this incentive scheme. Issue 4 Given target is not SMART (Specific, Measurable, Achievable, Realistic, Time bound) They only announced to employees that production must be increased by 14%. They did not specify individual goals and objectives or Team goals and objectives. They express organizational goal and tried to achieve it through an incentive scheme. They should have to inform employees through a job description but they didn’t. Issue 5 Some managers and supervisors considered employees as machines. Also there were biasness in branding low quality and product rejections. In the meeting which held between management and Trade Unions management said that if employees were not in a position to this increase in order in the future, they were in for a heavy loss as a result they might even consider an employee redundancy plan also. There was no any interrelationship between management and employees. Management implements decisions without having employee’s collaboration. Therefore Trade Unions can influence. Recommendations with Literature Review Issue 1 There was no any feasibility study. No any internal or external environmental study. Both internal and external environmental factors are widely influence for the organizational functions. Before take any strategic decision organizational management should scan the internal and external environment. In this case organization is going to increase their production through incentive schemes. That means this organization is going to develop. Organizational development is all about improving organizations performance. But this performance development should be done by facing internal and external environmental changes. To do this organization should scan the internal and external environment. For internal scan organization should implement SWOT analysis and for external scan organization should implement PEST analysis. SWOT PEST Figure 1 In this case before implement the decision of product increment and incentive scheme organization should have to scan environmental factors. First of all whether existing employees are sufficient for fulfill this current target, if not organization should recruit additional employees to fulfill this target. If existing workforce is sufficient they should have being given a proper Training to do new job well. Existing employees. (Job rotation, Job enrichment, Job enlargement, Training and Development, Promotions etc.) External employees. (Just in time talent, Identify talent pool, Attract, Gain, Retain) Not only that but also organization should have to conduct a feasibility study. They should scan whether existing technology is enough whether existing machinery or machine capacity is sufficient whether raw material supply is satisfy the given target etc. After scanning those types of internal factors organization should scan external factors also. In this case Blue Flowers did not scan anything about environment they just announced a target and told employees to fulfill it. Issue 2 No target groups, Awareness program, Job evaluation and Performance appraisals Before implement an incentive scheme organization should have to point out which group has being given the target. It will be helpful to give incentives for employees who actually meet targets. According to this case Production Department employees are the target group. By identifying the target group correctly other department people will not be able to enjoy incentives without performing towards the target. After identifying the target group organization should inform them about what to do? How to do? When to do? Which benefits can gain through the target? This can be done through conducting an awareness program or an inauguration. And also the target group can be informing by a proper job description. Not only the target group but also the other department employees also should clarify according to the target to achieve and they also inform by proper job descriptions. Then organization should conduct a Job Evaluation to grade jobs according to its worth. Job evaluation is a systematic comparison done in order to determine the worth of one job relative to another. It provides a basis for grading and establishes pay structure. After identifying the grades pay structure should established. And the incentive scheme should align with the Evaluation and target group should have being given more worth. According to this case although Blue Flowers implement an incentive scheme they did not conduct any Performance Evaluation program. Through PM organization can measure Actual performance of employees and can compare it with expected performance. Through this measurement organization can identify high performers and low performance and make rewards or punishments. Issue 3 Incentive scheme was not lucrative and not equitable. According to this case Incentive scheme was not lucrative or equitable. As production people mentioned other department employees enjoy more of this incentives. As I express in issue 2 it can be prevent by target group identification. Proper awareness, Job evaluation and Performance Appraisal based incentives. According to this case organization can introduce Group Incentive Scheme. Group Incentive Schemes are targeted at improving performance levels or the output among a group of employees. This is like an individual incentive scheme but give pay over and above base salary to all team members when the group or team collectively meets specified standards for performance, productivity or other work related behavior. Blue flowers  are going to increase production by 40%. They can introduce targets to Production team, Accounts team, Sales team, HR team and purchasing team. Then organization can introduce incentive schemes for separate departments as per its worth. But there is a disadvantage. By providing team incentives some employees can enjoy incentives without performing towards target. To prevent this organization can introduce individual performance appraisal system also and they can reward high performers and identify low performers. This will be reduce demotivation of high performers, reduce tardiness, reduce LTO, and mainly can achieve the target efficiency and effectively. Organization also can use motivation theories for implement sound incentive scheme. Basically organization can use Two Factor Theory by Fredric Herzberg, Vrooms Expectancy Theory and Goal setting theory. Two Factor Theory Herzberg view that man lives at two levels, physical and psychological level. Several factors lead to employee satisfaction while the other lead to dissatisfaction the satisfiers are called Motivators and the dissatisfies are called Hygiene factors. Motivators appeared to produce motivated behavior and hygiene factors produced dissatisfaction. Vrooms Expectancy Theory This says that an employee will be motivated to exert a high level of effort when he believes that effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards and that rewards will satisfy the employees’ personal goals. This theory emphasize that motivation begins with a desire for something. Goal Setting Theory According to this theory, a person get motivated by following things The goal should be SMART They should be challenging but reachable Goals are seen as fair and reasonable Individual participation in goal-setting Feedback ensures that people get a feeling of pride and satisfaction from the experience of achieving a challenging but fair goal Feedback is used to gain commitment to even higher goal After evaluating above factors organization can take following steps; 1. Identify the objective properly 2. Consult with staff and trade unions 3. Relate the scheme to the business remuneration system 4. Ensure that the planned scheme is competitive 5. Decide on performance measures for organizational staff 6. Regular review and obtain feedbacks Issue 4 Target was not SMART According to this case the given target was not SMART. All organizations have their corporate targets. Those targets are divided into sections and assigned individual departments with those divided targets. Then those individual departments assigned departmental target among their department members. Those are calls individual targets. Those individual targets and departmental targets should fulfill through strategic plans, and those decisions which implement to achieve departmental targets should always align with the corporate target. Ex: Figure 2 When an organization establish a target it should be SMART (Specific, Measurable, Achievable, Realistic, Time bound) and also it should be structured with performance, conditions and standards. Ex: production team should produce 10000 flowers individually, 100% accurately within a given day within given machine capacity. Issue 5 Biasness of managers and supervisors. No interrelationship among management and employees In this case there was no any interrelationship among management and employees. Some managers/supervisors consider employee as machines and they reject production or brand as low quality as their wish. This is no fair and conflicts, high LTO, high absenteeism, high tardiness can be happened The best theory for the Human Relation is Hawthorne Studies. Elton Mayo was the founder and he did a research in Western Electricals. He searches how the lightning and illumination affect to the worker performance. From this research he founded that human relations can affect worker performance rather than physical conditions. We all are human being. We all are pleased to have pleasant relationships. It is a psychological need. In an organization if there are so many good physical conditions but no interrelationship between employer and employee that organization will not be able to achieve its desirable targets. According to this case thre was no interrelationship between employees and management and also biasness was there. As a result employees were get together with Trade Unions for gain their rights. That was a huge disadvantage for an organization. And also in the meeting with TUs management stance that if employees enable to fulfill targets on time they will be implement a redundancy program. That was not suitable and a point of conflict. To prevent this situation organization can Implement Soft Skill programs for managers and supervisors. Maintain fair welfare programs. Implement Participative Management System. Make standard level of production quality and make aware employees about that. Then rejection and low quality branding will not be bias. Conclusion Blue Flowers (Pvt.) ltd is a leading artificial flower manufacturer which provides artificial flowers for local and foreign markets. They desired to increase their production by minimum 40% but faced problems because of poor environmental awareness, poor targets, and weak incentives. If Blue flowers follow sound incentive system through a strategic plan they will never become unsuccessful in gaining 40% production increment.

Background And History Of Enron Accounting Essay

Enron was founded in 1985 through the amalgamation of Houston Natural Gas and Internorth, a natural gas company based in Omaha, Nebraska, and rapidly became the major energy and petrochemical trade goods bargainer under the leading of its president, Kenneth Lay. In 1999, Enron moved its operations online, touting the largest online trading exchange as one of the cardinal market shapers in natural gas, electricity, rough oil, petrochemicals and plastics. Enron diversified into coal, transportation, steel & A ; metals, mush & A ; paper, and even into such trade goods as conditions and recognition derived functions. At its extremum, Enron was describing grosss of $ 80 billion and net incomes of $ 1 billion, and was for six back-to-back old ages lauded by Fortune as America ‘s most advanced company. The sudden surrender, nevertheless, of Enron Vice-Chairman Clifford Baxter in May of 2001 and subsequent surrender of CEO Jeffrey Skilling in August of 2001, both of whom retired for unrevealed personal grounds, should hold served as the first indicant of the problems brewing within Enron. Mr. Skilling had been elected CEO merely months before, and Mr. Baxter had become Vice-Chairman in 2000. Finally, amidst analysts ‘ and investors ‘ inquiries sing unrevealed partnerships and rumours of crying accounting mistakes, Enron announced on October 16, 2001 it was taking a $ 544 million dollar after-tax-charge against net incomes and a decrease in stockholder equity by $ 1.2 billion due to related minutess with LJM-2. As will be discussed in the undermentioned subdivision, LJM-2 was partnership managed and partly owned by Enron ‘s CFO, Andrew Fastow. The LJM partnerships provided Enron with a spouse for plus gross revenues and purchases every bit good as an instrument to fudge hazard. Less than a month subsequently Enron announced that it would be repeating its net incomes from 1997 through 2001 because of accounting mistakes associating to minutess with another Fastow partnership, LJM Cayman, and Chewco Investments, which was managed by Michael Kopper. Mr. Kopper was the pull offing manager of Enron ‘s planetary finance unit and reported straight to the CFO, Mr. Fastow. Chewco Investments was a partnership created out of the demand to deliver an outside investor ‘s involvement in another Enron partnership and will be discussed at length in the undermentioned subdivision. Such restatements sparked a formal probe by the SEC into Enron ‘s partnerships. Other questionable partnerships were coming to visible radiation, including the Raptors partnerships. These restatements were prodigious, and combined with Enron ‘s revelation that their CFO Mr. Fastow was paid in surplus of $ 30 million for the direction of LJM-1 and LJM-2, investor assurance was crushed. Enron ‘s debt evaluations later plummeted, and one month subsequently, on December 2, 2001, Enron filed for bankruptcy protection under Chapter 11.Q. 1 ) What were the steps which Enron had missed to regulate during the full dirt?At the clip of its filing for bankruptcy in December 2001 the complex industrial construction of Enron was to the full grasped by few foreigners, and more complete information as to the true degrees of its assets, liabilities and off-balance-sheet places was still blossoming. An thought of the house ‘s complexness can be obtained from such characteristic s as its 2,800 offshore units and the 54 pages required to name people and companies owed money by Enron. This was a far call from the house which in the 1980s specialized in the proviso of natural gas grapevines and related services. But from these beginnings Enron expanded unrelentingly into trading activities in 1,800 merchandises or contracts and 13 currencies. Part of the motive of Enron ‘s behavior was similar to that of many other houses in the 1990s, deducing from the links between stock monetary values and executives ‘ wage and wealth, above all through stock options. However, in Enron ‘s instance the factor of its recognition evaluation was besides of import. The house ‘s rapid enlargement required entree to big sums of funding ; and as its engagement in trading activities grew, so did the importance of its recognition evaluation since this determined its funding costs and crucially the willingness of its counterparties to merchandise with it. In order to keep the house ‘s recognition evaluation Enron sought it to be indispensable that it portrays a favorable income, while avoiding an inordinate purchase on Enron ‘s balance sheet. So as to accomplish this, the house resorted to extraordinary goings from transparence which affected the house ‘s dealingss with investors and creditors, its ain board of managers ( and therefore an of import portion of its internal control ) , and other stakeholders of the corporation. The house ‘s usage of particular purpose entities ( SPEs ) was portion and package of the patterns employed to pull strings the house ‘s net incomes figures and balance sheet, as was resort to hedge and the usage of derived functions in struggle with coverage regulations or concern logic ( or both ) . Many of the minutess associated with this use were besides associated with self-dealing by Enron executives taking to significant personal enrichment. In summing up the causes for Enron ‘s autumn are ascribed to Enron ‘s failure to detect good corporate administration. Enron ‘s showy use of grade to market accounting. Enron ‘s complex minutess with particular purpose entities. This analysis has been restricted to Enron ‘s non observation of good corporate administration. Corporate administration is concerned with the relationships between a concern ‘s direction and its board of managers, its stockholders and loaners, and it ‘s other stakeholders such as employees, clients, providers, and the community of which it is a portion. The capable therefore concerns the model through which concern aims are set and the agencies of achieving them and otherwise monitoring public presentation are determined. Good corporate administration follows rules which still vary significantly among states and which are presently the topic of assorted enterprises designed to accomplish understanding on an acceptable model of basic criterions. Execution of rules of good corporate administration presupposes satisfactory public presentation on the portion of several different parties from both the private and public sectors. The function of these parties must be complemented by effectual ordinance, which in the instance of a house with operations every bit complex a s Enron includes non merely major regulators of the fiscal sectors but besides the regulator of the energy sector. Certain facets that will be dealt, herein, are: Enron ‘s system of inducements and countenances Board of managers Accountants/auditors Banks, Financial analysts and SECsEnron ‘s system of inducements and countenancesThe influence of the house ‘s stock monetary value on the inducement system for Enron ‘s employees became progressively of import during the long fiscal roar of the 1990s. In the instance of senior staff this reflected a wage system of which a cardinal portion consisted of stock options. For other staff much of their nest eggs was invested in Enron stock with the active encouragement of Enron ‘s ain direction. An of import portion of this procedure consisted of retirement nest eggs programs under which staff ‘s ain parts were topped up by parts from Enron itself. Many of Enron employees had invested significant amounts in Enron ‘s ain stock ; this was actively encouraged by Enron ‘s direction itself. But at the same clip Enron officers and a few managers were themselves selling the house ‘s stock on a monolithic graduated table, gross revenues no uncertainty partially due to normal portfolio variegation but besides likely to hold been progressively influenced by insider cognition of the turning precariousness of Enron ‘s existent state of affairs.Board of managersIn order to accomplish good corporate administration an of import function is attribute to histrions in the board of managers and independent external hearers. Key maps of the board of managers, which were peculiarly relevant in the instance of Enron, include choice and wage of executives, being watchful to possible struggles of involvement adversely impacting the house, and guaranting the unity of the company ‘s systems of accounting and fiscal coverage . Prerequisites for satisfactory public presentation include entree to accurate and timely information bearing on the fulfillment of these duties. It should be emphasized that when looking at the managers of Enron ‘s Board it was apparent that the managers did non map independently. Fiscal ties between Enron and a bulk of its managers seem to hold weakened their objectiveness in their inadvertence of Enron. Such relationships with Enron may hold made it hard for such board members to be nonsubjective or critical of Enron direction. Many of these Enron Board members may hold felt that their compensation might be endangered by oppugning such concerns in Board meetings, therefore, bring forthing weak â€Å" nodders and flunkies † as managers and thereby, lending to the autumn of Enron. One widely recognized rule of good corporate administration is that the board be independent of direction. It is indispensable that a board be capable of looking objectively at the direction and outside professional advisers of a house, and Enron ‘s Board was non capable in this regard. It should besides be mentioned here that of the compensation paid to the board a significant proportion was in the signifier of stock options, a pattern capable of exercising on the board pressures to O.K. determinations probably to hold a favorable influence on the house ‘s stock monetary value similar to those besides exerted on direction. The Board should work to assist avoid struggles of involvement, guarantee scrutinizing independency and accurate fiscal coverage, oversee compensation patterns, every bit good as many other dislocations that occurred within Enron. Compromised by its restraints and conventionality the Board failed in its undertaking.Accountants/auditorsSing scrutinizing good corporate administration requires high-quality criterions for readying and revelation, and independency for the external hearer. Enron ‘s external hearer was Arthur Andersen, which besides provided the house with extended internal auditing and consulting services. The history of dealingss between Enron and Arthur Andersen suggests that they were often characterised by tensenesss due to the latter is scruples refering several characteristics of Enron ‘s. Materials from Audit Committee meetings indicate that its members were cognizant of such bad accounting methods being employed by Enron, but did non move on them. These concerns, nevertheless, were ne'er decently addressed and were non efficaciously communicated to the Audit and Compliance Committee by Andersen. It is of import to stress that Enron was utilizing engineerings ( or complex fiscal techniques ) that helped to befog the house ‘s true fiscal consequences. Had investors been more cognizant of and understood the significance of such extremely structured partnerships, they would non hold been as deceived by the fiscal consequences and would hold looked more skeptically at the house ‘s fiscal status. The deficiency of fiscal coverage transparence represents the failure of another bed of corporate administration protection that stockholders are usually provided. Stockholders rely on the fiscal studies and information that direction produces. When such studies are inaccurate and have been manipulated stockholders are stripped of another mechanism that helps to truly supervise the public presentation of direction, which is what happened with the instance of Enron.Banks and Financial analystsEnron ‘s Bankss were profoundly involved in the house ‘s resort to techniq ues for the use of its reported net incomes and balance sheet. The Finance Committee should hold taken a more proactive function in analyzing and supervising the minutess. It should be seen that the Finance Committee holding been cognizant of the unstable nature of the related-party minutess in Enron, failed in its duty of supervising the minutess. A forum for more extended inquiring from managers sing the minutess was the ground that such a commission existed. Their occupation was to examine and take apart the minutess that they reviewed and to supervise hazard, neither of which they did for these related-party minutess. Most fiscal analysts covering Enron stock continued to urge it to investors good into the fall of 2001, even as disclosures refering Enron ‘s accounting and direction weaknesss began to proliferate. Many of the analysts made this recommendation even though they admitted that they did non to the full understand the house ‘s operations and construction.Q. 2 Lacuna in the bing jurisprudence due to which the Enron dirt took topographic pointThe Enron LoopholeThe Commodity Exchange Act exempts certain energy derived functions contracts from ordinance by the Commodity Futures Trading Commission ( CFTC ) . These freedoms are popularly known as the â€Å" Enron loophole. † Soaring energy monetary values have raised concerns about whether the CFTC has adequate information about these unregulated markets to supervise energy trading in a comprehensive mode. The Farm Bill established a more rigorous regulative government for electronic trading installations that offer contracts that play a important function in puting energy monetary values. A figure of other measures in the hundred-and-tenth Congress would enforce new coverage or regulative demands on the bilateral energy barters market, which was non addressed by the Farm Bill. This study will be updated as legislative developments warrant. In 2000, Congress passed the Commodity Futures Modernization Act whose cardinal intent was to put out the conditions under which derivative fiscal contracts – instruments like hereafters, options, or barters, whose value is linked to the monetary value of some implicit in trade good – could be lawfully traded in the over-the counter ( OTC ) market, that is, away the hereafters exchanges that are regulated by the Commodity Futures Trading Commission ( CFTC ) . The CFMA established three classs of trade goods and made them subject to changing grades of ordinance: fiscal trade goods ( such as involvement rates, currency monetary values, or stock indexes ) were defined as excluded trade goods. Excluded trade goods can be traded in the OTC market with minimum CFTC inadvertence, provided that little public investors are non allowed to merchandise. A 2nd class is agricultural trade goods ; here, because of concerns about monetary value use, the jurisprudence specifies that all derived functions based on farm trade goods must be traded on a CFTC-regulated exchange ; unless the CFTC issues a specific freedom after happening that a proposed OTC agricultural contract would be consistent with the public involvement. Finally, there is a 3rd â€Å" all-other † class – an exempt trade good – which includes whatever is neither fiscal nor agricultural. In today ‘s markets, this means chiefly metals and energy trade goods. The statutory freedom from ordinance provided by the CFMA for exempt trade goods is normally known as the â€Å" Enron loophole. † Before its prostration in 2001, Enron Corp. was a innovator in OTC energy trading and developed an electronic market ( Enron Online ) for trading physical and derivative contracts based on a figure of energy merchandises. Defined in the jurisprudence as fiscal establishments, insurance companies, broker/dealers, authorities units, professional hereafters bargainers, and concerns and persons run intoing certain plus and income thresholds. The given is that these are sophisticated bargainers who do non necessitate the protections offered by authorities ordinance. â€Å" Trading installation † is defined in jurisprudence as a â€Å" installation or system in which multiple participants have the ability to put to death or merchandise understandings, contracts, or minutess by accepting commands and offers made by other participants that are unfastened to multiple participants in the installation or system. † These are defined as eligible contract participants who ( 1 ) trade in the physical trade good or ( 2 ) on a regular basis provide hazard direction or hedge services to those who do. Defined as a trading installation, that operates over an electronic or telecommunications web and maintains an audit trail of minutess. Basically, one of the ways to counter fiscal dirts is to better the quality of scrutinizing services. However, the current legal, regulative and corporate administration model is robust and sufficient to protect the market. This is hard because the figure of fiscal dirts affecting hearers is increasing. Furthermore, whilst corporate administration may hold improved but the hearers ‘ responsibilities and duties are shrouded in enigma and mystique as of all time. There is a blank in the current legal model as the responsibilities and duties reposed on hearers under common jurisprudence, ‘the Companies Act ‘ , BAFIA and the CMSA are unequal in countering the fiscal dirts.Other defectsEnron, an energy trading company is the first dirt which shook up the scrutinizing profession although there were many instances affecting hearers since the 18 century. Enron has caused a crisis to the assurance in hearers and the dependability of fiscal coverage. The audit quality and the independency of the hearers were questionable. This is because the hearers, who were Arthur Andersen, were non merely having fees for scrutinizing but for non-audit services excessively i.e. for consultancy services. In 2001, Arthur Andersen earned US $ 55 million for non-audit services. Furthermore, there were regular exchanges of employees within Enron from Arthur Andersen. Under the common jurisprudence responsibilities and duties, there is no responsibility reposed on the hearers to avoid struggle of involvements. Therefore, the fact that Arthur Andersen was offering non-audit services is non a breach of jurisprudence in the first topographic point. Under ‘the Companies Act ‘ , although independency of the hearers is indispensable as can be seen in S. 9 of ‘the Companies Act ‘ which disqualifies certain individuals from being eligible as hearers, the proviso does non cover with issues refering the offering of non-audit services to the company. This is because the proviso merely prohibits an employee, officer, spouse or employee or employer of an officer from being appointed as an hearer. The offering of the non-audit services by the hearers to a company is in the capacity of an independent contractor. The jurisprudence assumes that such individuals are independent. This is because independency is the basis for scrutinizing. However, there will be struggle of involvement and hence the independency of the hearer will be affected. Although Arthur Andersen was doing a study on the company ‘s histories, they did non describe fraud to the stakeholders. This is because the fraud was committed by the direction. Kenneth Lay took place US $ 152 million although the company was confronting a loss. If the hearers were to describe they likely will non be appointed in subsequent old ages or be engaged for non-audit services. They made sure that they were in the direction ‘s good books. They maintained confidentiality but for the incorrect grounds. The U.S. authorities assured the stakeholders that Enron was merely a instance of one bad apple. Nonetheless, in 2002, WorldCom which is one of the biggest telecommunications company in US collapsed. The issue sing hearers reached a high degree due to Enron. It was found that the hearers, Arthur Anderson, did non take proper stairss in observing accounting abnormalities. Although it is the responsibility of the hearers to observe accounting abnormalities, they failed to make so. Since they failed to make so truly, they should be apt. As a consequence of Enron, the audit house Arthur Andersen in Malaysia was dissolved. On the other manus, it is hard to find the scope of the hearers ‘ responsibilities and duties. This is because in at least four affairs, the American International Group Incorporated ‘s hearer i.e. PricewaterhouseCoopers are cognizant of debatable accounting but decided that they were non material. If the position is shared by the scrutinizing profession, it can be considered that the hearers have performed their responsibilities and duties consequently. However, the position must besides be agreed by the tribunals before set uping whether the hearers have performed their responsibilities and duties consequently. When Enron took topographic point, it was thought it could non go on in Malaysia. In fact the SC believed that since Malaysia patterns different set of accounting and auditing regulations. However, much before Enron, there have been instances which involved scrutinizing dirts. In fact the dirts pose a changeless menace to the regulative construction, public trust and assurance in the market economic system. Therefore, it has raised concerns sing the credibleness of the audit profession. The consequence of these alterations was that, what had antecedently been a system of healthy cheques and balances became a united forepart at the disbursal of investors. Alternatively of holding opposed involvements that served to protect investors, they now had an unhealthy common involvement. The fiducial responsibility that executives owed to stockholders took a back place to the chase of a short-run addition in stock monetary value. Accountants, who had once policed fiscal studies in order to protect the public, now had a strong inducement to assist executives to make whatever it took to hike portion monetary value in order to maintain them as confer withing clients. And investing bankers no longer served as sure advisors to their clients, reconnoitering out the best securities. They found it more advantageous to work with executives and comptrollers to finance trades that raised stock monetary values, even if it meant selling out their clients.Q.3 ) What were the Amendments tha t were brought in station Enron Issue?The Enron Scandal caused a loss of an estimated $ 74 billion to the stockholders. After the prostration of Enron, several issues were earmarked for the attending of reformists including: – The function of concern financess in political candidacy. – The extent of energy companies ‘ influence on national energy policy. – The demand to reform pension Torahs to halt over-exposure to one stock and forestall a company from puting its pension financess in its ain stock. – The demand for higher criterions of transparence and revelation in the audit profession. – Potential struggles of involvement between consultancy and scrutinizing work undertaken by fiscal houses. – The demand for tighter ordinance on fiscal derived functions trading.Sarbanes -Oxley Act ( SOX ) of 2002The sudden prostration of Enron Corporation in late 2001, amid disclosures that its public accounting statements had been manipulated and falsified to hide the company ‘s true fiscal place, was the first in a series of major accounting dirts affecting American corporations. The response of the 107th Congress was to go through the Sarbanes-Oxley Act ( P.L. 107-204 ) , sometimes described as the most sweeping amendments to the securities Torahs since the 1930s. The SOX came as a US legislative response to the recent batch of accounting dirts. It provided for conformity with comprehensive reform of accounting and required for publically held companies to advance and better the quality and transparence of fiscal coverage by internal and external hearers. Companies must â€Å" list and track public presentation of their stuff hazards and associated control processs. â₠¬  Companies can no longer do loans to company managers. SOX Act besides did non turn to other cardinal causes: misaligned inducements ( e.g. , displacement from hard currency to stock option compensation focal point on short-term net incomes instead than longer run net income public presentation. Congress ‘s purpose in go throughing Sarbanes-Oxley was to reconstruct assurance in fiscal markets by increasing corporate answerability, heightening public revelations of fiscal information, and beef uping corporate administration. More terrible condemnable punishments for securities fraud were besides enacted. The Securities and Exchange Commission ( SEC ) has adopted more than a twelve concluding regulations to implement the Act ‘s commissariats. These regulations raise criterions of answerability for corporate executives, boards of managers, independent hearers, and corporate lawyers. Some of the of import characteristics of the Act were: The Act created a national Accounting Oversight Board that, among other activities, must set up the moralss criterions used by CPA houses in fixing audits. It was required that the hearers retain audit working documents for specified periods of clip. It was required that hearer rotary motion forbiding the same individual from being the lead hearer for more than five old ages. It was required that the CEO and CFO certify that the company ‘s fiscal statements are true, just and accurate. The Act prohibited corporations from widening personal loans to executives and managers. It was required that the audited company discloses whether it has adopted the codification of moralss for its senior fiscal officers. It was required that the SEC on a regular basis review each corporation ‘s fiscal statements. The Act prevented employers from retaining against research analysts that write negative studies. It imposed condemnable punishments on hearers and clients for falsification, destructing, changing or hiding records. It imposed all right or penalty on any individual that defrauds stockholders. It increased punishments for mail and wire defraud from 5 to 20 old ages in prison. The Act establishes condemnable liability for failure of corporate officers to attest fiscal studies.A Few Possible Lessons and actionsa-?We need a structural inspection and repair of the system, including:New regulations forbiding houses that do the accounting for a company from making any confer withing for that company Through run finance reform, a committed attempt is needed to acquire large money out of political relations Reregulation and inadvertence of energy trading and distribution a-?We must penalize corporate irresponsibleness: More attempt and diligence is needed in tracking and exposing corporate irresponsibleness and authorities must beef up the current slap-on-the-wrist penalties. At a start, this includes a continued thorough probe of the Enron/Andersen by Congress, the SEC, and the Justice Department, with the public non accepting a watered down version from the authorities. a-?Workers should hold more engagement and power in direction determinations, particularly when pension financess are involved. If this had been in topographic point, Enron perchance would n't hold collapsed, and the employees surely could hold salvaged some of their nest eggs. Losing one ‘s full pension fund is good evidences for demanding employee determination doing power to forestall it in the hereafter. a-?We demand to fight against trade understandings – demand to go on to construct a strong, widespread battle against these trade understandings such as the GATS, and expose them for what they truly are: mechanisms for development of the universe ‘s people, land, resources, and public services. The authorization of these understandings is to let for the Enron ‘s of the universe unrestricted entree to privatise which will probably merely take to more Enron ‘s on a planetary graduated table. Without this battle, local and public services will go on to be lost.

Article to be read BUDGET REORGANIZATION IN THE URBANOPOLIS HUMAN

To be read BUDGET REORGANIZATION IN THE URBANOPOLIS HUMAN RESOURCES DEPARTMENT - Article Example Issues There are many existing problems within the organizational structure of the City of Urbanopolis which is made even more challenging by the proliferation of items that cannot be supported by the allotted budget of the city. Furthermore, the city is experiencing a rough patch in its financial capability to support all the employees that make up the structure of the local government. There are superfluous positions that can no longer be continued as they take up funds that could otherwise go to more significant use. The challenges posed by problematic employees, if not addressed, could only cause a rift to the functions that they serve and the people that seek their services. Those who are incompetent and are unwilling to perform their jobs according to their purpose must not be tolerated and their review according to the policies and as agreed upon by the labor unions and the company should keep them in check. There are also other technological necessities that come with the imp rovement of the office and though this may be foregone, as suggested by Francesca Molleda the Budget Analyst, taking a second look at the possibility of acquiring funds to purchase the requested computer units would not hurt in the slightest. I have been promoted as the new Human Resources Director of the City of Urbanopolis and as the first order of business the need to address the budget problems which can be correlated to personnel issues was assigned to me by instruction of the city officials. I am writing this memo as a means of communicating the most appropriate actions that I perceive will best suit the needs of the organization in tackling the city’s financial problems and simultaneously eliminating redundant positions that only take up a slice of the financial allotment without delivering much result. This recommendation is founded upon the basis of employing the most appropriate standards according to existing collective bargaining agreements and in accordance with the law. My most sensible recommendation is to delete excessive positions which may be handled by one person instead of two or more. This is basically streamlining the organizational chart and encouraging a multi-tasked type of positions which will equate to fewer people on the payroll thus directly addressing the appointed task of resolving budget problems as instructed by the City Manager, Chris Sedgefield. The overage positions seem to be a major source of headache as suggested by Molleda and they may be let go in accordance with their performance reviews by their superiors. People such as Jay Devonridge, Vera Mobley, Hugh Parks and Terry Preston are among those occupying overage positions and are not performing well on their jobs. They should be given notice as part of the RIF. However, certain overage employees such as Barney Fromm and Echo Jameson are performing exceptionally well and are showing great potential in their work. It would be a great waste to let them go so their respective heads should further evaluate whether they should keep their current positions if possible or transfer them to another position that will also let them grow as employees. Janice Brock, another overage employee and a Secretary III, would be another case of difficult decision to let go as she seems to be performing quite well in her

Animal testing and research Essay Example | Topics and Well Written Essays - 500 words

Animal testing and research - Essay Example Animals thus provides medium for prerequisite test to prove the efficacy of the vaccine in question in human beings. Notwithstanding, the belief has been informed to construe that substitutes of the animals are available for the same (Grayson and Library 145). Initially, animals testing were done without any consideration on the life sanctity of the animals, suffering of the animals either was not considered an issue as the main concern was the study. Fortunately, with the enactment of laws regarding the animals, the animals’ rights have been established to ensure that just like human beings they are protected. The establishment of the laws necessitated research on possible alternatives that were not animals which includes; synthetic skins called corrositex, computer modeling, improved statistical design and the Murine Local Lymph Nodes Assay (LLNA) (Grayson and Library 167). The efforts to avoid the use of actual animals in research is aimed at what is dubbed three Rs; Refin ement, Reduction and Replacement (Grayson and Library 172). The sole purpose of involving animals in testing the efficacy of drugs is to reduce the number of drugs that are tested on human beings. Drugs can only be tested on humans after it has passed the animals models, this means that any drug that fails to meet the required standards do not reach the human trials. These standards may be that they do not elicit enough immune response or proved to be poisonous and is notorious of killing living cells. In such a case, the drugs trials will halt at animals testing (Grayson and Library 197).

Discuss the challenges that global warming presents to both Essay - 1

Discuss the challenges that global warming presents to both governments and business - Essay Example These businesses include those reliant on fossil fuels in production or others that produce products that are the source of carbon emissions themselves. However, since everything comes at a cost, businesses are reluctant to combat the challenges that are bringing climate change. Climate change in general has affected businesses in all the industries regardless of their size. The primary reason for this assertion is the fact that the world is largely dependent on fossil fuels, the burning of which results in CO2 emissions, for its energy needs. Chief science adviser to Tony Blair, Sir David King believed that climate change has even greater threats than those posed by terrorism (Carey, 2004). The immediate reaction, as to what should we do in this regard, would be to develop alternatives for fossil fuels. What those alternatives are is then the challenge for businesses and governments to address. John Carey in his cover story for Bloomberg Business Week believes that the idea is to cu t down on usage of fossil fuels and to develop energy efficient vehicles and factories (Carey, 2004). The main contributor to greenhouse gas emissions however remains the energy sector. Surprisingly, and for the greater good, businesses adopting methods to address these concerns are thriving. Climate Group, an effort by companies and governments, helps to share stories of corporate success. Michael Northrop from the Climate Group says, "It's impossible to find a company that has acted and has not found benefits" (Carey, 2004). Although evidence exists of the energy sector benefitting from changes, the challenge exists in changing the dimensions of the industry to accommodate environmentally friendly substitutes to fossil fuels. Many companies are however reluctant to invest the appropriate amount of both time and money to find the most viable alternatives to fossil fuels. Oil companies have been primarily responsible for greenhouse gas emissions and have allegedly failed to restrict their contribution in the name of profit (Monteleone, pp. 144-154, 2007). Thus, it then poses a question to governments as to what should policy be aimed at. The answer is not that simple as even that comes at cost. Limits on pollution in the form tradable permits are being sought as a solution by the EU and the US in an attempt to curb greenhouse emissions. CEO of Xcel Energy Inc. Mr Wayne H. Brunetti says that one solution would be to give the companies the chance to figure out a solution and to allow them to set goals for 50 years down the road. He also stresses on the need for flexibility and the need for cooperation between institutions (Carey, 2004). The concerns of governments and environmental activists however are not restricted to the energy sector. Intel Corporation, the world’s largest chipmaker has been under scrutiny for its contribution to climate change. The challenge then again for businesses is to look for substitutes.  Intel’s Stephen Harper says that the search for alternatives is still on and they are planning to find solutions to the growing concerns about climate change (Carey, 2004). Surprising enough is the contribution of animal farms to the greenhouse process. The contributions made by the animal agricultural sector to greenhouse gas em

South Africa and the State Florida Brings Me Nirvana-like Tranquility Essay

South Africa and the State Florida Brings Me Nirvana-like Tranquility - Essay Example Until some time ago, it has been hard for me to find peace in the military where I grew up as everything was about rules and obedience. Nevertheless, the opportunity for me to travel around the world gave me some insight into what I truly needed. South Africa then proved to be the closest answer to my needs. When I went there in 1998, there was something in the deep blue waters and the luscious green vegetation of South Africa, something like a call to go back to nature and return to innocence. Some people believe it is just nature itself that gives inspiration to someone during these times but I believe it is more than that. For someone like me who has gotten used to the bustling city life, nature is a whole new experience and this creates in me a feeling of awe. This feeling of awe then seems to instantly and paradoxically fill my mind and empty it at the same time.

Discuss critically the idea of popular art in Africa Essay

Discuss critically the idea of popular art in Africa - Essay Example among artists who had come through the Fine Art departments of West African universities, and who sometimes began to write or speak as if we should thus omit these forms of practice from consideration as ‘art.’ Susan Vogel’s 1991 Africa Explores was criticised in precisely this way, for placing artists who were in some sense part of an international art world in the same space with sign painters. Indeed, one might have all sorts of reasons for being critical of it, but one achievement of Africa Explores was to show that the diverse forms comprising the category ‘popular’ had little or nothing in common, other than their location in a largely urban environment; and yet, in practice, printmaking, sign painting, photography, masquerade, textile design, etc, may well subsist as parts of a common set of visual environments; and yet, while possibly functionally inter-related within local art worlds at some level ,for example one medium as source material fo r another, each will have its own developmental trajectory. In this essay I will discuss the idea of ‘popular’ art in Africa. I will first focus on popular arts in West Africa then I will move onto the popular arts in Central Africa. Following this, I will discuss Primitivism and the Magiciens De La Terre event in 1989 and lastly, conclude that popular art are also much more than constellations of social, political, and economic relationships — they are expressive acts. Their most important attribute is their power to communicate. African art takes many forms and is made from many different materials. Jewellery is a popular art form and is used to indicate rank, affiliation with a group, or purely for aesthetics. African jewellery is made from such diverse materials as Tigers eye stone, haematite, sisal, coconut shell, beads and ebony wood. Sculptures can be wooden, ceramic or carved out of stone like the famous Shona sculptures and decorated or sculpted pottery comes from many regions. Various forms

Art Deco style Essay Example | Topics and Well Written Essays - 1750 words

Art Deco style - Essay Example The emergence of art deco as a dimension of art began in the early 1920’s; this period was characterized by a jovial mood following the incidences that were leading to the end of the First World War. The entire global populace was characterized by a feeling of bright future; different economies were rapidly developing, especially in Europe and the United States of America. People were filled with joy and high sense of liberty. During this period, Jazz Music was at its peak, while in some sections of the society, women and other minority groups had acquired their rights of voting, specifically during election periods. The society was also characterized by rapid emergence of tourism, which was popularly known as Leisure Travels’. The machine age and technology were also rapidly advancing; the quality of human life was improving at a rapid date. During this period, skyscrapers were built; radio was invented as well as the printing press. Historical evidence indicate that t he society was filled with tremendous joy and their there was high level of anticipation of brighter future. Consequently, the hustle associated with these developments was accompanied with the rapid emergence of the Art Deco Style. History indicates that a major arts’ exhibition was held in Paris during 1925; artists referred to this exhibition as ‘Exposition Internationale'. Major and popular artists, craftsmen, expert architects and designers from various parts of the World as well as in France attended this crucial event.

Latin America and the Catholic Church Case Study - 2

Latin America and the Catholic Church - Case Study Example At the conclusion of the lackluster oration, a BBC reporter stated, that the Pope gave,†Ã¢â‚¬ ¦the most unusual mass of his career.†(qtd in Hoyt,1983) Why were so many Catholics so disappointed? What were the reasons for the Pope’s behaviors? What were the consequences in Nicaragua after the papal visit? These are all issues that will be discussed in the course of this essay. Nicaragua in the late 1970s and 1980s was a land of revolution. Many citizens felt that their existing leader, Anastasio Somoza Debayle, was a tyrant. They saw the immense poverty, the hunger, the poor living conditions, the lack of employment available was directly related to the exploitation and oppression by their government; that this is the reason the poor suffered without relief. The plight of the poor Christians brought them to the rebel militias formed by the Sandinistas, who opposed Somoza, encouraged rebellion, and promoted the teaching of â€Å"liberation theology.†(Dillon,1999) This, sometimes, controversial interpretation of Christianity, relies heavily on the need to care for the poor and heavily rebukes traditional capitalist economic systems. These differing spiritual interpretations and differing political perspectives left Nicaragua, as a whole, at odds. Many, likely, thought that the Pope’s visit would aid in resolution and more potential peaceful ou tcomes. Just one day before the Pope’s arrival in the country 17 members of a Sandinistas Youth Group riding a bus were ambushed and killed. Many people cried out for him to say something in regards to the young lives lost, but he did not. Generally speaking whenever a foreign head of state visits another country, where youths have been tragically killed, regardless of the reasons,†Ã¢â‚¬ ¦he is expected to say SOME sympathetic remarks.†(Hoyt,1983) Not only did he refrain from such condolences, he, in fact, had scolded members of the clergy for participating in the

The Politics of the Hijab Case Study Example | Topics and Well Written Essays - 500 words

The Politics of the Hijab - Case Study Example da is constitutionally and professedly a multicultural nation that supports religious and cultural diversity, actually speaking Canada is not that tolerant of the religious rights of minority communities. In that context Hijab relates to the assertion of political, cultural and gender identity in a Canadian context. The young Muslim women in Canada see Hijab as an umbilical cord that ties them to their culture and endows them with community acceptance and sustenance, as they move out in the larger Canadian society to eke out their identity at their own terms. Hijab allows women to deny the patriarchal practices typical to their culture of origin while allowing them to solicit familial and community support as they adapt to the Western way of life. Many young Canadian Muslim women also use Hijab to assert their cultural identity in a society dominated by majority norms and as an expression of their religious pity, modesty and political beliefs. Thereby, Hijab is not a monolithic symbol of patriarchal oppression, but carries a range of meanings and implications. It is true that Hijab is used as a way of oppressing women in many totalitarian Muslim nations (Lazreg, 2009). Yet, using this fact to assign a singular meaning related to patriarchal dominance to Hijab is unjust and wrong (Elver, 2012). Many a times some sections of the majority community in Canada associate simplistically derogatory meanings with Hijab, not because they care about women rights, but because the Hijab stands out as a potent symbol of a minority culture and identity. It sounds really modern to use the ploy of women rights, while demeaning a symbol of minority identity and religion (Scott, 2007). There are also sections of the majority community who do genuinely believe that the Hijab worn by the young Muslim women in Canada conveys their surrender before the patriarchal domination. This is actually a gross misconception. For many young Muslim women in Canada, Hijab is a thing that keeps

QSR Industry In India Essay Example for Free

QSR Industry In India Essay Executive Summary 4 ï‚ ¨ India is witnessing rapid urbanization of small towns and growth of mid-sized cities. This along with rising population in key metros and higher disposable incomes is fuelling growth in every industry. 35% of India‟s population will be in urban centres by 2020 totaling to 53 crores compared to the current urban population of 32 crores. ï‚ ¨ Consumer markets are being driven by the country‟s youth population. Be it college goers or the young working class, exposure to the international environment and culture, has created a demand for world-class products at affordable prices. ï‚ ¨ This has led to the rise of Quick Service Restaurants (QSRs) in India, the fastest growing segment in the eating out market. By 2012, there will be at least 2000 more QSR outlets across India. ï‚ ¨ With QSR giants like Starbucks and Dunkin‟ Donuts yet to foray in the market, there is a lot to look forward to. 5 Industry Overview 7% of the total restaurant market comprises of QSRs 6 ï‚ ¨ The Indian fast food market is growing at an annual rate of 25-30 per cent, Foreign fast food chains are Estimated Size of the Indian Restaurant Industry Organized Eating Out Market, Rs. 8600 Cr. Growth : 20% (20%) aggressively increasing their presence in the country. ï‚ ¨ The market is dominated by global brands like McDonalds, KFC and Dominos specially in the organized fast food segment. Growing trend of Unorganized Market, Rs.3 4400 Cr. (80%) Growth : 5-6% consumption of new cuisines and increasing brand awareness has led to the increase of global players. The new age Indian consumers have also played a QSR Market Rs.3000 Crores 7% significant role. ï‚ ¨ Organized modern formats like malls, multiplexes and Organized Restaurant Market (Except QSRs) Rs.5600 Crores 13% food courts have also become a favoured destination. Larger companies are teaming up with small franchisors to set-up their brand. ï‚ ¨ QSRs started with big metros, but are now building their presence in Tier 2 cities like Unorganized Restaurant Market Rs.34400 Crores 80% Pune, Ahmedabad, Chandigarh and Bangalore. Sources: www.nrai.org,, www.rncos.com Total Restaurant Industry Rs. 43000 Crore Market Segmentation 7 Restaurant Industry †¢Road-side location †¢No technical standards †¢No accounting standardization Unorganized Full-Service Restaurants QSRs Fine Dining Take-away Casual Dining Organized Home Delivery Eat-in Bars and Lounges †¢Accounting Transparency †¢Organized Supply Chain †¢Quality Control †¢Sourcing Norms †¢Multiple Outlets †¢Dominated by Global Players Kiosks/Carts Highest growth segment. Maximum Footfall due to increasing traffic at airports, railway stations, malls, multiplexes and supermarkets Growth Drivers 8 25% of population eats out at least twice a month and spends Rs.150-Rs.500 / meal Urbanization Youth Spending Expanding Middle Class 2% 11% Better logistics A younger and richer India is fuelling rapid growth in the eating-out segment 29% Affuent Upper Middle Class 300 million 29.5 % or 88.5 million Key consumption areas 2% 5% Total population of Gen Next (13-24 Age Group) Total population of Gen Next living in urban areas Household Distribution By Annual Income 1% Nuclear families Mall and Multiplex boom Clothing accessories, Food, Entertainment and durables Spending Power Rs.3000-40000 per month †¢ †¢ Lower Middle Class 86% 64% Bottom of the pyramid Urban youth behaviour †¢ †¢ 2010 2020 Sources: Marketing Whitebook 2011-12, Economic Times, MGI Socially active Hangs out at coffee shops and malls Prefers to be seen at the right places Expresses one‟s identity through choice of brands consumed Maintaining Consistency in product and quality of service are the biggest challenges faced by QSRs 9 Challenges Demand Side Supply Side Health and hygiene concerns among buyers Maintaining Quality of Service Acquiring Key Talent Building a costeffective supply chain QSR customers are very easy to sell to, but also very easy to lose Localization of Menu Managing high attrition rate amongst junior level employees Establishing a supply chain in a new region Beating local competition Standardization of product across outlets Low entry barriers Monitoring multiple outlets Reducing service time – efficient assembly line Talent Supply Chain Monitoring quality of products procured from third parties SWOT Analysis 10 STRENGTH OPPOTUNITIES †¢ Burgeoning middle class †¢ Risk-sharing in a franchise based model †¢ Abundance of cheap labour in India †¢ Increase in malls and Positive multiplexes †¢ Increasing youth spending †¢ Urbanization WEAKNESS THREATS †¢ Sourcing Talent †¢ Food Inflation †¢ Monitoring franchisees †¢ Product imitation †¢ Maintaining quality standards across outlets †¢ Understanding Indian tastes Internal Factors †¢ Price Competition †¢ Dependency on third parties †¢ Local Competition External Factors Negative Urban Youth Make Up The Prime Target Audience 11 Particulars Low Cost in terms of initial investment as well as operating cost Target Audience Profile Category Young Urban Professionals on the move Low Risk Key Features of a QSR Teenagers High Impulse products Students Best Retail Locations Multiplex audience Competitive Prices Shoppers Target Audience Behaviour Age group 16-35 Hygiene Taste conscious Location Cities and towns Social Class Middle and Upper Middle Class Lifecycle Dependent and Pre-Family* Brand conscious Westernized culture Seeking international standards Value seekers Experimental *based on Sagacity Lifestyle Model 12 Working of a QSR Brand Image, Ambience and Overall Experience are important intangible factors for QSR customers 13 ï‚ ¨ A QSR is meant to create instant interest in the mind of the consumer. It has to have ï‚ ¤ Intangible parameters that make a QSR successful Mass appeal Brand ï‚ ¤ ï‚ ¤ A unique experience ï‚ ¤ ï‚ ¨ A characteristic ambience A strong brand identity One cannot find Ronald at any other burger joint except McDonalds. ï‚ ¨ The service, which is the only human touch, plays a big role in creating a unique experience. A lot of time and resources are spent on training the staff ,as they represent the brand. KFC employees are expected to live up to their 3 F‟s to create to perfect environment – Fun, Friendly and Familiar. ï‚ ¨ In an effort to maintain the same experience across outlets, the service, interiors and menu items are standardized . Experience Ambience QSR Formats and Locations 14 QSR FORMATS LOCATIONS Malls Restaurants Tourist hubs Food Court Counters Corporate hubs Kiosks/Food Carts Take-away/Delivery Drive-ins Shopping Centers Multiplexes Airports/ Railway Stations Setting up a Franchise Outlet 15 Initial Qualification †¢ Application Review †¢ Background and Credit Check †¢ Assess training needs †¢ Signing of Franchise Disclosure Document †¢ Verify Assets Site Registration †¢ Franchisor sends site registration to brand for approval †¢ Franchisee remits funds Operation Plan Site Exploration and Securing Control †¢ Prospective franchisee makes an operation plan which is reviewed thoroughly Franchise Onboarding †¢ Franchisee arranges for Financing †¢ Hires a Team †¢ Franchisor provides Support and Training †¢ Builds Restaurant †¢ Supports in Grand Opening †¢ Determine Site Selection Strategy †¢ Identify focus areas †¢ Franchisor completes Action Plan for Trade Area †¢ Franchisee negotiates for the site and sends letter of intent Franchisor’s Role after the launch †¢ On-site Training is provided for every procedure. †¢ The Franchisor has an approved vendor list from where the ingredients can be sourced. †¢ They have an annual promotional and advertising plan that they implement with the support of the franchisees. †¢ Quality checks are conducted via Consumer Feedback, Food SafetyAudits and Standard Audits Managing Human Resources 16 ï‚ ¨ Acquisition When QSRs come to India, they find it difficult to get experienced talent for Human Resource Tree at at a typical QSR outlet strategic positions. There are very few people with relevant experience, Restaurant Manager especially in a global firm. Poaching employees from competitors would mean huge incentives and salary raises. Thus a lot of companies hire people in the same function but from a different industry. ï‚ ¨ First Asst. Manager Support training The franchisors offer support and training to the franchisees for effectively Trainee Manager running the small format franchise business. Training is conducted at 3 stages: ïÆ'Ëœ Induction ïÆ'Ëœ On-going ïÆ'Ëœ Refresher ï‚ ¨ Retention Trainee Floor Manager Out of 10000 emloyees, KFC has to replace 7000 employees each year. This means cost for fresh recruitments, training and relieving employees is very high. Dominos has increased salaries of store front employees by 20% and implemented an incentive plan in order to reduce attrition rate. Training Squad Crew Member Second Asst. Manager Marketing Strategies 17 ï  ± QSRs have to play on their strengths to create and communicate a brand promise. ï  ± The brand promise can be anything from fast service to low prices to healthy food. ï  ± Successful QSR chains have been able to take their brand promise very effectively to the masses. 1 †¢ A large burger chain targeted the value seeker community and created highest value for money as its brand promise. 2 †¢ India‟s largest Pizza chain targeted the customers who wanted fast service at their doorsteps. It created the brand promise of assured fast delivery and communicated it with its â€Å"30 mins or its free† campaigns 3 †¢ A large coffee shop chain wanted to position itself as not just a coffee shop but a place to hangout with friends and family. They marketed themselves with the tag line â€Å" A lot can happen over coffee† which clearly communicated that they wanted their customers to have a complete experience much beyond just coffee. Pricing Strategies 18 ï  ± Its important for QSRs to price their products carefully because of the stiff competition that they face. ï  ± The strategy is to price their products in such a way that the maximum number of customers can be retained and at the same time higher margins are abstracted from the customers who do not mind paying more for extra value. This is achieved by: DIFFERENTIAL PRICING Pricing the base product aggressively and keeping higher margins on the side orders This strategy is for the price conscious consumer who sees great value in the base product and can choose to not take the side orders At the same time it allows the QSR to charge the customer for whom price does not matter, much more through the high margin side orders Most QSRs keep fighter brands in their menu to remain competitive. VALUE PRICING Value combos allow the QSR to sell more no of high margin products with the low margin base products. Eg: QSRs try to sell more French fries and cold drinks through their value meals. Pizza chains sell more garlic bread and cold drinks through their value meals Growth Strategies of QSRs 19 A large burger chain in India has the highest foot fall amongst all countries, but the lowest average bill. Growth in India is achieved based on volumes, hence every QSR is looking to expand its presence . A coffee trading company who supplies coffee beans, started a retail business of coffee shops all over India. Forward Integration A casual restaurant chain diversified into food court stalls., thus entering the QSR market. Horizontal Diversification A coffee shop chain diversified its coffee shops business by establishing express outlets and coffee machines. Concentric Diversification A soft drink giant branched out to form a new company with Pizza and Fried Chicken chains in its umbrella. It sold off its stake, but is in a lifetime contract with the firm Lateral Diversification Menu Planning 20 Menu Selection is critical, especially when localizing in markets like India and China where traditions, religion and local taste are cannot be ignored. Enlisted below are some of the important factors: Size of outlets Target in terms of demographics Local taste preference †¢ QSRs do not keep the full menu at all outlets. †¢ Instead they include only a few high volume products at outlets with space limitations like food courts and express kiosks †¢ Depending upon the age group they are targeting, QSRs have to adjust their menus. †¢ QSRs targeting older age groups have to include healthier and more traditional food items in their menus where as QSRs targeting the youth can have more experimental and/or fast food items. †¢ Product adaptation according to customer preferences is really important for QSRs to succeed. †¢ International chains in India have to adjust their menus to include more vegetarian and spicy items. A Fried Chicken brand has the most extensive range of items in India amongst all its worldwide outlets †¢ Most QSR giants avoid using beef and pork due to cultural taboos. The 4 pronged approach to ensure standardization across all outlets 21 Standardized aspects of every outlet There are 4 important factors that enable standardization for a restaurant with multiple outlets: Training Equipment †¢Every new employee has to go through a specific pre-designed training program for that level of employment. Recipes Procurement of Products †¢The same machines are used by all outlets for making the  dishes. Standard recipes have to be followed by the chefs who receive thorough training for the same. †¢QSRs have centralized approved vendors from where they  procure and process raw materials. They also procure finished products like spices and condiments from the same vendor and distribute it. Case Study – Dominos India 22 60 9000+ 400 364 9000 Jubilant Foodworks Ltd. operates the 364 Dominos international markets outlets in India, pursuant to a Master Franchise Agreement International, which operate Dominos pizza delivery stores and the associated trademarks in the operation of stores in India, Nepal, Bangladesh and Sri Lanka. The pizza million pizzas sold each year employees in India Dominos provides them with the exclusive right to develop and outlets worldwide outlets in India with stores in Sri Lanka are operated by their subfranchisee, DP Lanka. It is the largest Pizza chain in India, way ahead of its immediate competitor Pizza Hut with 50% of market share in the Indian Pizza market and 70% market share in the home delivery market. Source: dominos.com, dominos.co.in, reuters.com Case Study – Dominos India 23 Particulars Market share in the Indian Pizza market – 50% Market share in the home delivery segment –70% Sales Per Day Per Outlet Rs.56600 80% of their sales come from the Pizza segment, and EBIDTA margin (9M FY2011) 18% the remaining is attributed to beverages and side items. Same Store Sales Growth (9M 38.7% 80% of sales come from home delivery and 20% from 65% FY2011) Market Share OTC sales. Sales Break-up: Cuisine-wise 4% Sales Break-up: Segment-wise 20% 16% Pizzas Home Delivery Beverages Over-the-Counter Others 80% 80% Source: indiainfoline.com, dominos.co.in Critical Success Factors of Dominos India 24 Critical Success Factors 1. Delivery-oriented model reduces cost 2. Dominos has a vertically integrated supply chain. (as seen below) 3. Franchising model Supply Chain of Dominos Regional warehouse Raw Material Supplier (Approved vendor) Regional Centralized Facilities for processing raw material like dough – 4 centres across India Refrigerated trucks carry the finished items to retail outlets Retail Outlets Items are prepared based on orders and sent to end consumer 25 Key Players‟ Profiles Key Player Profiles 26 Name Cuisine Parent Company/ Master Franchisee Origin Location Formats Outlets Expansion Plans in India McDonalds Burgers Hard Castle Restaurants Pvt. Ltd USA PAN-India Dine-In, Food Courts, Drive-in 210 To add 20-25 outlets by 2013 KFC Fried Chicken Devyani International Ltd. USA PAN-India Dine-In, Food Courts 110 500 outlets by 2015 Chicking Fried Chicken Mirah Group UAE South Zone Dine-In 14 Bangs Fried Chicken Fried Chicken Bangs India India South Zone Dine-In, Food Courts 7 100 outlets by FY2011 Pizza Hut Pizzas Devyani International Ltd. USA PAN-India Dine-In 171 300+ outlets by 2015 Dominos Pizzas Jubilant Foodworks USA PAN-India Dine-In, Delivery , Food Courts 364 To add 70 outlets in 2011 Papa Johns Pizzas Om Pizzas Eats USA West Zone Dine-In 25 Pizza Corner Pizzas Global Franchise Architects India South Zone Dine-In, Delivery 50 US Pizza Pizzas United Restaurants Ltd. India PAN-India Dine-In, Delivery 77 Smokin‟ Joes Pizzas Smokin‟ Joes Pizza Pvt. Ltd. India PAN-India Dine-In, Delivery 52 Garcia‟s Pizzas Garcias Famous Pizza India West Zone Dine-in, Delivery 20 To add 20 outlets Slice of Italy Pizzas Green House Hestoft Foods Pvt. Ltd. India North Zone Dine-In, Delivery 16 Key Player Profiles 27 Name Cuisine Parent Company/ Master Franchisee Origin Location Formats Outlets in India Expansion Plans in India Barista Coffee Shop Barista Coffee Company Ltd. India PAN-India Espresso bars, High end cafes 230 Costa Coffee Coffee Shop Devyani International Ltd. England PAN-India Cafes 75 300 outlets by 2014 CCD Coffee Shop Amalgamated Bean Coffee Trading Co. India PAN-India Cafes, Mall Airport kiosks, Office outlets 1090 To add 200+_ outlets by 2014 Gloria Jean‟s Coffee Shop Citymax Hospitality Australia Metros Cafes 15 40 outlets by 2012 Kent‟s Fast Food Burgers Kents Fast Food India North Zone Dine-In 15 Subway Submarine Sandwiches Subway Systems India Pvt. Ltd. USA PAN-India Dine-In, Food Courts 200 250 outlets by end of 2011 Tacobell Tex-Mex Yum Restaurants USA Bangalore Dine-In 3 100 outlets by 2015 Falafel Veg. Hummus House Lebanese Mirah Group India Mumbai Dine-In, Kiosks 8 100 outlets by 2011 Wimpy Burgers Famous Brands Ltd. UK Delhi Dine-In 3 Yo! China Asian Moods Hospitality Pvt. Ltd Delhi, India PAN-India Dine-In, Kiosks 80+ Key Player Profiles 28 Name Cuisine Parent Company/ Master Franchisee Origin Location Formats Outlets Expansion Plans in India Dosa Plaza South Indian Prem Sagar Dosa Plaza Pvt. Ltd. Mumbai, India PAN-India Dine-In, Food Court 35 Jumboking Vadapav Jumboking Foods pvt.ltd. Mumbai, India West Zone Express, Restaurant Takeaway 43 250 outlets by 2011-12 Kaati Zone Mughlai East West Ethnic Foods Pvt. Ltd. Bangalore , India South Zone Dine-In 15 Mast Kalandar Indian Spring Leaf Retail Pvt. Ltd. Bangalore , India South Zone Dine-In 21 Nirula‟s MultiCuisine Nirula‟s Corner House Pvt. Ltd. Delhi, India North Zone Dine-In, Kiosks 80+ To add 50 outlets by 2012 Kailash Parbat MultiCuisine Kailash Parbat Restaurants Pvt. Ltd. Mumbai, India PAN-India Food Court Stalls 15+ Comesum MultiCuisine RK Group Delhi, India PAN-India Dine-In, Delivery 11 Haldiram‟s MultiCuisine Haldiram Snacks Pvt. Ltd. Delhi, India North Zone Dine-In 18 Bikano Chat Cafe MultiCuisine Bikanervala Foods Pvt. Ltd. Delhi, India North Zone Restaurant, Institutional Tuck Shops, Food Cart 68 Sagar Ratna MultiCuisine Sagar Ratna Hotels Pvt. Ltd. Delhi, India North Zone Dine-In, Food Court 53 Tibbs Frankie Frankie J.Tibbs Co. Mumbai, India West Zone Kiosks 20+ Key Players‟ Segmentation 29 Segmentation based on Size of the Chain Local Chain Jumboking National Chain International Chain Segmentation based on Cuisine Pizzas Burgers Sandwiches Coffee Shops Indian Specialty Cuisine Dominos McDonalds CCD Comesum Jumboking Pizza Hut KFC Barista Sagar Ratna Yo!China Pizza Corner Wimpy Costa Coffee Kailash Parbat Tabobell Papa Johns Subway Gloria Jeans Mast Kalandar Falafel Pizza Hut Smokin Joes Kents Fast Food Kaati Zone Tibbs Frankie Barista Pizza Corner Garcia‟s Haldirams Haldiram‟s Cafà © Coffee Day Papa Johns Slice of Italy Nirulas Sagar Ratna Tibbs Frankie Tacobell US Pizza Bikano Chat Cafe Comesum McDonalds Nirulas Dosa Plaza KFC Mast Kalandar Kailash Parbat Subway Kaati Zone Yo! China Wimpy Garcia‟s Smokin‟ Joes Dominos Falafel‟s US Pizza Bang‟s Fried Chicken Bikano Chat Cafà © Costa Coffee Kents Fast Food Gloria Jeans Geographical Segmentation 30 PAN-India : International Cuisine McDonalds* NORTH ZONE Nirula‟s Haldiram‟s Bikano Chat Cafà © Slice of Italy Kent‟s Fast Food Sagar Ratna Wimpy PAN-India : Coffee Shops Gloria Jean* KFC* Costa Coffee* Subway* Barista Pizza Hut* Cafà © Coffee Day Dominos* US Pizza Smokin‟ Joes WEST ZONE Papa Johns* Garcia‟s Falafel Jumbo King PAN-India : Indian and Specialty Cuisine Dosa Plaza Comesum 65% of Dominos‟ revenues are contributed by the top 7 cities out of 70 cities it is present in. 50% of their outlets are in Maharashtra, New Delhi and Karnataka SOUTH ZONE Pizza Corner* Chicking* Tacobell* Kaati Zone Bangs Fried Chicken Mast Kalandar *International Brands Kailash Parbat Yo! China Tibbs Frankie Key Players‟ Positioning 31 PAN-India Ethnic Cuisine Ethnic Cuisine PAN-India Pizza Hut Dominos Comesum* Dosa Plaza* Kailash Parbat* Yo! China* Cafà © Coffee Day* Barista* Gloria Jeans Costa Coffee Sagar Ratna* Haldiram‟s* Mast Kalandar* Jumbo king* Kaati Zone* Bikano Chat Cafà ©* Nirula‟s* Zonal Tacobell Falafel Pizza Corner Papa Johns US Pizza* Smokin Joes* Slice of Italy* Garcias* McDonalds KFC Wimpy Subway International Cuisine Chicking Bang‟s Fried Chicken* Kent‟s Fast Food* Tibb‟s Frankie*International Cuisine Zonal *Indian originated chains Dominos and Cafà © Coffee Day are the largest QSRs in India in terms of reach and number of outlets 32 No. Of Outlets v/s Geographical Spread of Pizza Chains Pizza Chain Outlets Spread Origin Indian 52 PAN-India Indian 50 South Zone International 25 West Zone International 20 West Zone Indian Slice of Italy 16 North Zone Indian Chain Outlets Cities 1090 120 PAN-India Indian 364 87 PAN-India International McDonalds 210 45 PAN-India International Pizza Hut 171 34 PAN-India International Barista 230 30 PAN-India Indian Subway No. of Outlets PAN-India Dominos 115 77 Cafà © Coffee Day No. of Cities 65 International Garcias 15 PAN-India Papa Johns No. Of Outlets v/s No. of Cities of top brands in India 171 Pizza Corner 15 International Smokin Joes 5 10 Geographical Spread PAN-India US Pizza 0 364 Pizza Hut No. of Outlets Dominos 200 26 PAN-India International KFC 110 21 PAN-India International Spread Origin 33 Trends and Future Prospects Big brands – Small cities – Small formats 34 Locations Large chains expanding to smaller cities Domestic chains setting up in big cities Formats Cuisines Technology Express Outlets Basic street Foods entering organized market – Vadapav, Ice Gola Online ordering systems Smart Carts/Kiosks Regional cuisines– Kebab Lucknow Wale, Malwaneez IVR system for placing order and making payment via Credit Card Kiosks have managed to attract huge footfalls at sales points. Even big chains are now customizing their outlets to smaller models like „express‟ and „stand-ins‟ Integration of concepts – so Mcdonalds serves coffee and CCD serves sandwiches Menu diversification by introducing Indian flavours – Chicken TandooriSub at Subway Investors are queuing up to get a big slice of the pie 35 ï‚ ¨ With the number of QSRs growing at 30% per year, the industry is attracting investors‟ interest, especially after the IPO of Jubilant Foodworks, the master franchise of Dominos Pizza in India ï‚ ¨ ICICI Venture acquired 10% stake i.e. $55 Million in Devyani International who is the franchisee of KFC, Pizza Hut and Costa Coffee in India ï‚ ¨ Also Mast Kalandar, a Bangalore-based QSR chain, secured a second round of investment from Helion Venture Partners, Footprint Ventures and Salarpuria Group. ï‚ ¨ Chinese cuisine QSR Yo! China received funding of $5.5 Million from Matrix partners ï‚ ¨ Accel Partners invested in Bangalore-based fast food chain Kaati Zone. Source: vccircle.com QSR giants Dunkin Donuts and Starbucks set to foray into the Indian market 36 ï‚ ¨ ï‚ ¨ ï‚ ¨ Dunkin’ Donuts- Jubilant FoodWorks is to develop, sub-franchise, and operate more than 500 Dunkin‟ Donuts restaurants throughout India over the next 15 years. The first Dunkin‟ Donuts locations are expected to open by early 2012. The Agreement marks the largest international store development commitment in Dunkin‟ Donuts‟ history. Starbucks – Tata Coffee is to bring Starbucks , the world‟s largest coffee chain to India through a Joint Venture Quiznos – The US-based subway restaurant chain has signed a master franchise agreement with Arjun Valluri for setting up outlets in Southern India. Source: www.dunkindonuts.com, www.trak.in, U.S. Franchise Trade Mission Participants Profile, April 10-15 2011 Sources 37 Research firms ï‚ ¨ Technopak ï‚ ¨ IBEF ï‚ ¨ Marketing Whitebook 2010-11, 2011-12 ï‚ ¨ Mckinsey Global Institute ï‚ ¨ www.rncos.com ï‚ ¨ www.nrai.org Company Websites ï‚ ¨ www.yum.com ï‚ ¨ www.mcdonaldsindia.com ï‚ ¨ www.dominos.co.in Other websites ï‚ ¨ Hospitalitybizindia.com ï‚ ¨ Indiaretailing.com ï‚ ¨ Franchiseindia.com Newspapers ï‚ ¨ Deccan Herald ï‚ ¨ Economic Times ï‚ ¨ Business Standard ï‚ ¨ DNA 38 About D‟Essence Our Services 39 D‟Essence Hospitality is Boutique Management Consulting firm based in Mumbai which provides specialty consulting services for the entire spectrum of the hospitality industry with a special focus on hotel operators, builders and investors ï  ± Feasibility Studies ï‚ ¤ Management Model Viability ï‚ ¤ Technical Viability Economic and Financial Model Viability ï‚ ¤ ï‚ ¨ Market Viability Business Model Viability Exit Strategy Viability Site Analysis We have vast experience in project planning site selection. In many cases it has been seen that planners architects normally look into a project from design and land-use perspectives. But we do detailed site and market analysis to determine the viability of the project from financial and investment standpoint. ï‚ ¨ India Entry Strategy We help our clients to develop suitable market entry strategies through analyzing entry barriers (ease), geographical factors, incumbents‟ resistance and routs to market. ï‚ ¨ Management Contracts Branded operators have very stringent clauses in the contracts. To deal with them needs deep understanding of the domain and effects of each clause on the profit margins. D‟Essence Hospitality Services makes full use of its expertise in understanding the management contracts and negotiating it for best acceptable terms. Our Services 40 ï‚ ¨ Key Recruitments D‟Essence Hospitality is dedicated to becoming India‟s leading executive search firm exclusively serving the Hospitality Industry. Our search team enables you to recruit for executive level management, divisional managers, general managers, culinary, finance, sales and marketing, food and beverage, engineering professionals who will all, directly affect and drive the profitability of your organization ï‚ ¨ Acquisitions From our years of experience, we advise our clients on which assets to buy and when to buy and based on our recommendations they devise strategies for buying assets. We also provide assistance to our clients to develop assets disposal strategies in order to maximize project performance ï‚ ¨ Business Model and Business Plan We assist our clients in the business planning process and then prepare a plan based on the available resources and their business objectives. Our Business Planning services include feasibility studies, business formation plans, strategic plans, new product plans, marketing and promotional plans, etc. ï‚ ¨ Fund Raising ï‚ ¨ Mentoring ï‚ ¨ Growth Strategy THANKYOU D‟Essence Consulting 303, Aar Pee Center, 11th Road, Gufic Compound, MIDC, Andheri (E) Mumbai- 400093 Tel +91 22 28347425 www.dessencehospitality.com

First Amendment Protection of Journalists Essay Example for Free

First Amendment Protection of Journalists Essay The First Amendment of the US Constitution has special provisions for freedom of expression speech and press. It has clearly defined that The freedom of speech and of the press, and the right of the people peaceably to assemble and consult for their common good, and to apply to the Government for redress of grievances, shall not be infringed† (FindLaw, 2004). There were several instances of debates and discussions on the protection of journalism under the provisions of the First Amendment. Constitutionalists agree on the point that the liberty of the press is essential for the well-being of a free state. Every person has the right to express his feelings before the public. Journalists do the same thing. They investigate on their own and provide the information regarding the policies of the government and other agencies to the public. If a journalist is not allowed to express his opinions, then it is a clear infringement into his rights. Journalists always have always used anonymous sources to gather information. It has become a part of investigational journalism. However, several times in the past, press has been subjected to castigation for reporting about the secret policies of the government quoting anonymous sources. There was always pressure on the journalists to reveal their confidential sources. Need of the First Amendment Protection of Journalists The recent incident involving former New York Times reporter, Judith Miller has unleashed a debate on the protection of confidential sources in journalism. Pulitzer Prize winner Judith Miller had to spend 85 days in jail for refusing to identify confidential sources during the investigation into the disclosure of a CIA agents identity. Eventually, she was forced to step down after working 28 years at the Times (The New York Times, 2005). It is always believed that a journalist has the right to protect the identity of a source. It may be true that this right is not absolute. There should be a limit on that to prevent any misuse of journalism expression. However, punishing the journalists for their reporting is not a right solution. The identification of anonymous sources may lead to suppression of information. The Times believes that First Amendment right to speech includes a right for the journalists in which they are not supposed to speak during the testimony in a criminal investigation. The freedom of the press to publish without any limitation is one of the fundamental aspects of the First Amendment. However, recent incidents such as the detention of Miller raised serious questions. If the journalists will be forced to reveal their sources of information, then it is unlikely that they would get more information in future. Persons, who reveal the secrets anonymously, will never provide useful information to the journalists if their identities are disclosed before the investigation agency. They would be forced to conceal the information to themselves. As a result, the public will never know the truth. If we look at the history, the First Amendment supported the freedom of press and the journalists in some instances. â€Å"In the Pentagon Papers case in 1971, the US government attempted to prevent the New York Times and the Washington Post from publishing classified documents about the Vietnam War. The government claimed that publication of such documents would jeopardize the foreign policy and prolong the war. However, the Court did not buy the arguments and dismissed them as speculations† (Powe, 1991). However, in most of the cases, it has been noticed that the First Amendment do not provide adequate protection to the journalists. Even the judges expressed their concern in some cases. In a 2002 judgment, Supreme Court Justice Anthony M. Kennedy said, First Amendment freedoms are most in danger when the government seeks to control thought or to justify its laws for that impermissible end. The right to think is the beginning of freedom, and speech must be protected from the government because speech is the beginning of thought† (ALA, 2002). The International Federation of Journalists has accused the United States administration of suppressing the freedom of expression by forcing journalists to disclose confidential sources of information. They believe that this is a violation of the First Amendment. In most of the cases, journalists are bullied by judges and investigating agencies. A number of high-profile legal actions against journalists have sparked a national campaign among press freedom campaigners and journalists. Journalists feel that they have stood up firmly for the First Amendment principles (IFJ, 2004). The identification of sources has become very common in the US history. Several judgments in the recent past, asked the journalists to reveal the identity of their sources. Also, in some instances they ruled that it is the right of journalists to protect their sources. The differences of opinions have made one thing clear that there is a need for a clear and visible law that would protect the rights of journalism and journalists. It is to be remembered that by protecting their sources, the journalists are just saving the whistleblowers from facing retribution. If the confidential sources are exposed, common people will be deprived of their right to know the truth. Need of a National Shield Law Earl Caldwell, a correspondent for the New York Times, was the only journalist at the Lorraine Motel in Memphis when Dr. Martin Luther King Jr. was assassinated in 1968. He established a rapport with the Black Panthers and had access to their confidential conversations with them. When FBI asked him to provide the notes, Earl Caldwell, a correspondent for the New York Times, was the only journalist at the Lorraine Motel in Memphis when Dr. Martin Luther King Jr. was assassinated in 1968. He established a rapport with the Black Panthers and had access to their confidential conversations with them (Montiel, 2005). When FBI asked him to provide the notes, he declined and took the mater to the Court. In 1970, the U. S. Court of Appeals for the Ninth Circuit recognized the existence of a protection for the journalists under the First Amendment. It rules that Caldwell did not have to identify his sources unless the government could show the real need for his testimony and the proof that such information could not be obtained elsewhere. The government appealed against this order in the Supreme Court. After long discussions, the Supreme Court ruled 5-4 against Caldwell. This is an example how the judges themselves were not sure about the provisions of the First Amendment. His fight against the government led to the expansion of state shield laws protecting journalists (Montiel, 2005). The Caldwell case became the most famous one related to the First Amendment and freedom of press. It stressed on the need for federal law to protect the journalists from indictment and harassment. The state shield laws were expanded and associations were formed. â€Å"After the Caldwell case, the Reporters Committee for Freedom of the Press was formed, which worked for preservation of journalistic rights under the First Amendment† (Montiel, 2005). It has been noticed that in the cases related to the protection of journalists under the First Amendment, judges expressed different opinions. Hence, it is very much important to have a common law which bring all of them into a common platform and provide relief to the journalists who often suffer for no fault. It is their compulsion and responsibility to protect the confidentiality of sources as they obtain the information on that promise. Contradiction in federal court rulings forced many state courts and legislatures to interpret the First Amendment from different angles. To protect journalists from unjustified testimonies, 31 states and the District of Columbia have passed laws known as shield laws (First Amendment Center, 2004). However, state shield laws often fail to guarantee the protection to the journalists. In todays digital world, most of the journalists work through television and Internet, thus securing a good name on the national and international stage. Without a national shield law, it will not be possible for them work independently without any prosecution for concealing their sources. A national shield law will not only benefit the journalists, but also it will do justice to the public. If the journalists fail to protect their private communication with people who provide useful information anonymously, it will be an infringement into their personal rights. Nobody can expect the common men to stand up openly and divulge the secrets that public should know. They would definitely be concerned about their own safety and security. Hence, such people, called as whistleblowers depend on journalists to air their grievances against the system and corrupt authorities. If their identities are not protected, it will deter others from providing useful information to expose the corrupt officials and leaders. Recently, Senator Christopher J. Dodd, D-Conn proposed the legislation for protecting the journalists under the First Amendment. If the law is passed, journalists would not be forced to reveal their sources. Their notes, photographs and other materials would be protected from the federal courts, government and investigating agencies. The bill says that a court could force a journalist to disclose the sources only if that cannot be obtained anywhere else and are related to public interest (First Amendment Center, 2004). In the past few years, there have been several instances of judges threatening the journalists with fines or jails if they fail to reveal sources. The state shield laws will not serve the purpose of freedom of press. It is necessary formulate a national shield law to deal with such issues. The above bill introduced by Senator Dodd could be an important step on this regard. Conclusion In the wake of the current debate over the protection of journalists under the First Amendment, we have to look on this issue with a humanitarian approach. The press is always called as the mirror of the society. Journalists are the true soldiers of the press who always intend to uphold its value and ethics. Protecting their rights is very important for the wellbeing of the society. Prosecution of journalists for a no-crime may not augur well for people’s belief in constitutional rights. Adequate steps should be taken to pass a strong law that would protect the journalists and the confidentiality of their sources. They are well within their rights not to disclose their sources and they should not be compelled to do that. It should be kept in mind that whatever they are doing is for the benefit of the public and the society. Bibliography Allen, David S. , Jensen, Robert, editors. (1995). Freeing the First Amendment: Critical Perspectives on Freedom of Expression. New York: New York University Press. American Library Association (ALA). (2002). Retrieved 15 November 2005.