National Westminster Bank Essay

Q1. Analyse the customer contact process during the account opening procedure. What aspects of the branch’s operation impact on each stage? From analysing the branch’s operation it is clear to see which parts of the banks operation impacts each stage of the account opening procedure. Firstly the customer arrives into the bank, usually customers go to the cashiers section, they are then referred over to the enquiries counter, where they are greeted by enquiry personnel who find out which of the banks service the customer requires. If the customer wishes to open a new account, a member of the records staff comes to administer the account opening procedure. It is the records staff who deals mostly with new customers. The records staff must to have a good basic knowledge of all the banks operations to be able to advise the new customer which account is best suited for them. They must find out if the customer wishes to invest money or if they wish to avail of the banks credit facilities. The records staff would not have an in depth knowledge of the investments available to new customers so more often than not a member of the investment section is called over to advise the new customer. Read more:  Banker’s Draft Natwest For credit facilities, the new customer is referred to the lending section for processing, as this operation is outside the record section staff jurisdiction. Once they account type has been established, the â€Å"formalities† begin (processing of customer details). Records staff go through forms to ensure that all key information has been gathered. This is probably the longest part of the account opening procedure with the customer as a lot of details need to be processed. Once all the details have been gathered by the records staff, the direct customer contact finishes. Customer details are then passed onto the administrative section and the machine room to finalise the opening of a new account and the paper printing (cheque books, log books, ATM cards etc.) How the different operations interact upon the Records section: Q2. How would you improve the process? Once the bank identified their problems the set out an improvement plan. They key areas identified for improvement were identified: > Signage > Inexperienced Staff > Limited staff for rush hours > Uneven flow of walk-in customers at peak times From a recent survey customers identified the following problems: > Account opening forms were not properly explained > Bank’s standard account pack was not sent out to customers > Some customers waited more than the standard 9 days to receive cheque book and bank card > Customer personal details were recorded incorrectly > Staff seemed uninterested in the customers needs > Customers wouldn’t recommend the bank to others All of the above points were taken into account in the banks improvement plan. Firstly the signage issue was tackled. This issue was clearly a problem when we visited the bank, see fig.1 It was evident from this, that the enquiries desk wasn’t clearly noticeable or signposted. To eliminate the problem of new customers queuing at the cashier’s desk (adding to queue delays in the bank) new signage was positioned around the bank clearly highlighting where the new customers were to go. While it was unfeasible to move staff permanently from section to section, records staff who are generally young and junior members of staff could be temporarily move around each of the banks operations. This would add to their training knowledge and enable them to give more specialised advice to customers. By doing this staff will get to know each others jobs, they will become more confident in their work, giving the sense of importance to the banks operation. This increases staff motivation which reduces boredom as boredom leads to mistakes. To assess the overall performance of staff’s training and progress, the bank could introduce ‘mystery shoppers’, a member of staff from another of the banks branches comes to open an account, goes through the whole procedure and at the end evaluates the staffs performance, identifies areas for improvement etc. As it was, the cashiers would go for their lunch, and it was the job of the records section to cover the cashier positions during lunch. This however was the busiest period for new customers wishing to open accounts. During the lunchtime rush customers could feel they were been rushed, inevitably resulting in mistakes occurring. To deal with this issue, lunch time for the bank staff could be divided up more evenly. Only a set amount of cashiers go for lunch at any one time, these cashiers do not take their lunch until the first group comes back, this way there is always somebody covering the records section to deal with new potential customers if they arrive during the lunch time period. To ensure the records section were not over burdened by new customers during the lunch time period, a system of ‘appointment only’ during the lunch time rush was set up. This way the records section could easily deal with walk-in customers in the mornings and afternoons, and during lunch time they knew how many customers to expect and spend the required time needed with each customer opening an account. This way the customer feels more at ease and the records section staff do not feel under pressure and rushed, reducing the amount of mistakes made. Customers felt that the account opening forms were not properly explained to them. This issue was tackled by more staff training and the ‘mystery shopper’ also helped by giving feedback. This helps the junior staff in training to interpret the forms better and be much more capable of explaining the forms to customers. In terms of the bank’s standard account pack not been sent out to customers, the bank set up a system of having all the leaflets on hand so the member of staff dealing with the new customer could make up a package there and then to suit the customers needs. It was identified that some customers waited more than the standard 9 days to receive their cheque books or ATM cards. This waiting period was improved by a more clear line of communication set up between the records staff, administration staff and the machine room. This was also helped as now there were fewer mistakes and the records staff had more time to process the forms during the day as the ‘by appointment only’ and not having to cover the cashier positions fully during lunch had clearly freed up some extra time for them. To deal with the problem of customers personal details not been recorded properly, the customer was asked to fill in a form which clearly legible showing how to spell their name address etc. Once all the forms had been filled out, it was advised that the supervisor provided an extra check on the forms before they were sent for processing. To assist with the implementation of this system a sort of a Kanban system could be set up, â€Å"In-Kanban†, â€Å"Out-Kanban† this way everything was fully completed before it was sent for processing, and there would be no mix ups, on what was processed and what has to be processed. Also as part of this kanban system to finalise the last step, approval by the manager must be signed on the form. The problem of the customers feeling rushed was solved when the records section were released from other duties such as fully covering the cashiers during lunch. If all of the above points are implemented successfully, the bank will be back on track to a successful and complimentary word of mouth.

Cyber Hacking

Cyber Hacking Cyber hacking is an act of modifying computer hardware and software, in order to cause damage to other computer system. People who engage in computer activities are known as hackers. What are their purposes to do so? For some hackers, it is just a hobby and the way to determine their level of computerization. They enjoy learning more about how computer works and consider it is an â€Å"art† form. Besides, hackers apply their skill to break passwords, send viruses, and damage computer network security system for their deceitful purpose.Some hacking activities are directed towards individuals, families and organizations as an actual attack. There are many effects caused by cyber hacking. For example financial losses, hackers steal financial information to withdraw funds from an organization. Other than that, some of them received ransom from an organization to bombard other organization’s servers to become overloaded and crash. Furthermore, hackers also pret end to be someone determines to gain unauthorized access to information property. Similar essay: The Other Side of Email Robert KuttnerThey get to use the information to steal funds from banks or credit cards. Apart from that, hackers may hijack politician identity to circulate propaganda that panics the population. As an internet user, we actually are at risk for becoming a victim of cyber hacking. So, how can we avoid from getting hacked? The ways to protect ourselves are do not engage in conversation with strangers, keep passwords protected, do not keep any sensitive materials on computer and make sure the antivirus software is always updated.

China Insurance Market Outlook to 2016 – Driven by Automobile Insurance Market

1  © This is a licensed product of Ken Research and should not be copied TABLE OF CONTENTS 1. 1. 1. 1. 2. 1. 3. Asia-Pacific Insurance Industry Industry Introduction Asia-Pacific Insurance Market Size by Direct Written Premium, 2005-2012P Asia-Pacific Insurance Market Segmentation 1. 3. 1. By Geography, 2005-2012P 1. 3. 2. By Life and Non Life, 2005-2012P 1. 4. Asia-Pacific Insurance Industry Future Outlook 1. 4. 1. By Geography, 2013-2016 3. 3. 1. 3. 2. 4. 5. 5. 1. 5. 2. 5. 3. 5. 4. 6. 6. 1. 7. 7. 1.China Insurance Industry China Insurance Value Chain China Insurance Market Size by Direct Written Premium, 2005-2012 China Insurance Government Regulations China Life Insurance Market China Life Insurance Market Size, 2005-2012 China Life insurance Claim Paid, 2005-2012 Market Share of Major Life Insurers in China, 2012 China Life Insurance Market Future Outlook and Projection, 2013-2016 China Non-Life Insurance Market China Non-Life Insurance Market Size, 2005-2012 Non-Life Insurance Segmentation, 2005-2012 China Property and Casualty Insurance Industry 7. 1. 1. China Property and Casualty Insurance Market Size, 2005-2012 7. . 2. China Property and Casualty insurance Claim Paid, 2005-2012 7. 1. 3. Property and Casualty Insurance Segmentation, 2005-2012 7. 1. 4. Market Share of Major Property and Casualty Insurers in China, 2012 2  © This is a licensed product of Ken Research and should not be copied 7. 1. 5. China Property and Casualty Insurance Market Future Outlook and Projection, 20132016 7. 2. China Motor Insurance Industry 7. 2. 1. China Motor Insurance Market Size, 2005-2012 7. 2. 2. China Motor Insurance Market Future Outlook and Projection, 2013-2016 7. 3. China Commercial Property Insurance Industry 7. 3. 1.China Commercial Property Insurance Market Size, 2005-2012 7. 3. 2. China Commercial Property Insurance Market Future Outlook and Projection, 2013-2016 7. 4. China Agricultural Insurance Industry 7. 4. 1. China Agricultural Insurance Market Size, 2005-2012 7. 4. 2. China Agricultural Insurance Market Future Outlook and Projection, 2013-2016 7. 5. China Liability Insurance Industry 7. 5. 1. China Liability Insurance Market Size, 2005-2012 7. 5. 2. China Liability Insurance Market Future Outlook and Projection, 2013-2016 7. 6. China Credit Insurance Industry 7. 6. 1. China Credit Insurance Market Size, 2005-2012 7. 6. 2.China Credit Insurance Market Future Outlook and Projection, 2013-2016 7. 7. China Accident Insurance Industry 7. 7. 1. China Accident Insurance Market Size, 2005-2012 7. 7. 2. China Accident Insurance Market Future Outlook and Projection, 2013-2016 7. 8. China Cargo Insurance Industry 7. 8. 1. China Cargo Insurance Market Size, 2005-2012 7. 8. 2. China Cargo Insurance Market Future Outlook and Projection, 2013-2016 7. 9. China Health Insurance Industry 7. 9. 1. China Health Insurance Market Size, 2005-2012 7. 9. 2. China Health insurance Claim Paid, 2005-2012 3  © This is a licensed product of Ken Research a nd should not be copied . 9. 3. China Health Insurance Market Future Outlook and Projection, 2013-2016 7. 10. Market Share of Major Non Life Insurers in China, 2011 7. 11. China Non-Life Insurance Market Future Outlook and Projection, 2013-2016 8. 9. China Insurance Industry Trends and Developments China Insurance Industry Future Projections, 2013-2016 9. 1. Cause and Effect Relationship Between Dependent and Independent Factors Prevailing in China Insurance Market 10. Company Profile of Major Players in China Life Insurance Industry 10. 1. China Life Insurance 10. 1. 1. Company Profile 10. 1. 2. Business Strategies 10. 1. 3.Financial Performance 10. 2. Ping An Life Insurance 10. 2. 1. Company Profile 10. 2. 2. Business Strategies 10. 2. 3. Financial Performance 10. 3. New China Life Insurance 10. 3. 1. Company Profile 10. 3. 2. Business Strategies 10. 3. 3. Financial Performance 11. Company Profile of Major Players in China Non-Life Insurance Industry 11. 1. Public Insurance Compan y of China (PICC) 11. 1. 1. Company Profile 11. 1. 2. Business Strategies 11. 1. 3. Financial Performance 11. 2. China Pacific Insurance (CPIC) 4  © This is a licensed product of Ken Research and should not be copied 11. 2. 1. Company Profile 11. 2. 2.Business Strategies 11. 2. 3. Financial Performance 12. China Insurance Industry Macro-Economic Indicators: Historical and Projections 12. 1. China Population, 2005-2016 12. 2. GDP of China, 2005-2016 12. 3. Healthcare Expenditure of China, 2005-2016 12. 4. Total Vehicle in Use in China, 2007-2016 13. Appendix 13. 1. Market Definitions 13. 2. Abbreviations 13. 3. Research Methodology Data Collection Methods Approach Variables (Dependent and Independent) Multi Factor Based Sensitivity Model Final Conclusion 13. 4. Disclaimer 5  © This is a licensed product of Ken Research and should not be copied LIST OF FIGURESFigure 1: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 2: As ia-Pacific Insurance Market Segmentation by Life and non Life on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 3: Insurance Value Chain Figure 4: China Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 5: China Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 6: China Life Insurance Market Claim Paid on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 7: Market Share of Major Life Insurers on the Basis of Direct Written Premium in Percentage, 2012 Figure 8: China Life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 9: China Non Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 10: China Non life Insurance Market Segmentation by Property and Casualty and Health Insurance on the Basis of Direct Written Premium in Percentage, 2005-2012 Figure 11: Chin a Property and Casualty Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 12: China Property and Casualty Insurance Market Claim Paid on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 13: China Property and Casualty Insurance Market Segmentation by Motor, Commercial Property, Agricultural, Liability, Credit, Accident, Cargo and Others Insurance on the Basis of Direct Written Premium in Percentage, 2005-2012 Figure 14: Market Share of Major Property and Casualty Insurers on the Basis of Direct Written Premium in Percentage, 2012 Figure 15: China Property and Casualty Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 6  © This is a licensed product of Ken Research and should not be copied Figure 16: China Motor Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 17: China Motor Insurance Market Projections on the Basis of Direct Writ ten Premium in USD Million, 2013-2016 Figure 18: China Commercial Property Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 19: China Commercial Property Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013 -2016 Figure 20: China Agricultural Insurance MarketSize on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 21: China Agricultural Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 22: China Liability Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 23: China Liability Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 24: China Credit Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 25: China Credit Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 26: China Accident Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 27: China Accident Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 28: China Cargo Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 29: China Cargo Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 30: China Health Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 7  © This is a licensed product of Ken Research and should not be copiedFigure 31: China Health Insurance Market Claim Paid on the Basis of Direct Written Premium in USD Million, 2005-2012 Figure 32: China Health Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 33: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in Percentage, 2011 Figure 34: China Non life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 35: China Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 36: China Life Insurance Net Written Premium of China Life Insurance Company in USD Million, 2006-2012 Figure 37: China Life Insurance Premium Income of Ping An Life Insurance in USD Million, 2008-2012 Figure 38: China Life Insurance Premium Income of New China Life Insurance in USD Million, 2006-2012 Figure 39: China Life Insurance Premium Income of Public Insurance Company of China in USD Million, 2005-2011 Figure 40: China Life Insurance Gross Written Premium of China Pacific Insurance in USD Million, 2008-2011 Figure 41: China Population in Million, 2005-2016 Figure 42: GDP of China in USD Million, 2005-2016 Figure 43: Healthcare Expenditure of China in USD Million, 2005-2016 Figure 44: Total Vehicle in Use in China in Million, 2007-2016 8  © This i s a licensed product of Ken Research and should not be copied LIST OF TABLESTable 1: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005 -2012P Table 2: Asia-Pacific Insurance Market Segmentation by Life and Non Life on the Basis of Direct Written Premium in USD Billion, 2005 -2012P Table 3: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 4: Market Share of Major Life Insurers on the Basis of Direct Written Premium in USD Million, 2012 Table 5: Market Share of Major Property and Casualty Insurers on the Basis of Direct Written Premium in USD Million, 2012 Table 6: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in USD Million, 2011 Table 7: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of China Insurance Market Table 8: Correlation Matrix of China Insurance Indust ry Table 9: Regression Coefficients Output of China Insurance Industry 9  © This is a licensed product of Ken Research and should not be copied ASIA-PACIFIC INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, 2005-2012P The insurance market in Asia-Pacific region has grown remarkably over the past few years due to the growth in the emerging markets such as China, Japan, India, Australia, Taiwan and South Korea. The countries in the Asia-Pacific region are at different stages of economic development unlike the European countries and the US which has created significant opportunities for the insurers in the region in order to serve the financial needs of the customers.The market in the region has grown at a CAGR of 11. 9% from USD ~ million in 2005 to USD ~million in 2012†¦ Figure: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P 16,00,000. 0 14,00,000. 0 12,00,000. 0 USD Million 10,00,000. 0 8,00,000. 0 6,00,000. 0 4,00,000. 0 2 ,00,000. 0 0. 0 2005 2006 2007 2008 2009 2010 2011 2012P 10  © This is a licensed product of Ken Research and should not be copied ASIA-PACIFIC INSURANCE MARKET SEGMENTATION BY GEOGRAPHY, 2005-2012P Asia-Pacific insurance industry is majorly contributed by 6 major countries such as Japan, China, South Korea, Taiwan, India and Australia with the share of ~% in 2012.Japan insurance market is the second largest in the world with the contribution of more than ~% in 2012†¦. The China insurance industry is China insurance industry is one of one of the predominant markets in the insurance industry the predominant markets in the in the Asia-Pacific region with a contribution of ~% of the insurance industry in the AsiaPacific region with a contribution direct written premium in the region in 2012†¦ South Korea is the third largest market with a contribution of ~% in 2012. The country insurance sector is more complicated with limited growth opportunities in comparison with the gro wing market in the region such as China and India†¦ of ~% of the direct written premium in the region in 2012.Table: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P Countries Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia 2005 2006 2007 2008 2009 2010 2011 2012P 11  © This is a licensed product of Ken Research and should not be copied Indonesia New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total 12  © This is a licensed product of Ken Research and should not be copied CHINA INSURANCE INDUSTRY CHINA INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, 2005-2012 The Chinese insurance industry has seen rapid expansion during 2005-2012 and will continue to see high growth rates in the next few years.The insurance market in the country has witnessed a compound annual growth rate of ~% in the last seven years and has recorded direct written premiu m of USD ~ million in 2012†¦ Figure: China Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012 3,00,000. 0 2,50,000. 0 USD Million 2,00,000. 0 1,50,000. 0 1,00,000. 0 50,000. 0 0. 0 2005 2006 2007 2008 2009 2010 2011 2012 Note:Life Insurance is in Premium Income Non-Life Insurance is in Premium Income 13  © This is a licensed product of Ken Research and should not be copied CHINA LIFE INSURANCE MARKET CHINA LIFE INSURANCE CLAIM PAID, 2005-2012 China life insurance industry has paid a claim of USD 20,128. million in 2011 due to an occurrence of natural disaster in mainland China in the first half of 2011. China has been the world’s most existing marketplace for global insurers for a decade and it looks set to retain its status in the near future. The country life insurance industry has experienced an incline in claim paid from USD ~ million in 2010 to USD ~ million in 2011†¦. . Figure: China Life Insurance Market Claim Paid on the Basis of Direct Written Premium in USD Million, 2005-2012 25,000. 0 20,000. 0 USD Million 15,000. 0 10,000. 0 5,000. 0 0. 0 2005 2006 2007 2008 2009 2010 2011 2012 Note:Life Insurance is in Premium Income 14  © This is a licensed product of Ken Research and should not be copiedMARKET SHARE OF MAJOR LIFE INSURERS IN CHINA, 2012 China life insurance industry is a concentrated market with top five players contributing around ~% of the total life insurance direct written premium in 2012. China life is the leading player in China life insurance industry with the contribution of approximately ~% of the total direct written premium of the life insurance industry in China in 2012†¦. Figure 1: Market Share of Major Life Insurers on the Basis of Direct Written Premium in Percentage, 2012 China Life shares Ping An Life New China Life CPIC Life PICC Life Taikang TPL (Taiping Life) Sino Life Others Note: Life Insurance is in Premium IncomeTable: Market Share of Major Life Insurers on the Basis of Direct Written Premium in USD Million, 2012 Players China Life shares Ping An Life New China Life 2012 15  © This is a licensed product of Ken Research and should not be copied CPIC Life PICC Life Taikang TPL Sino Life Others Total Source: Insurance Association of China and Ken Research Note:Life Insurance is in Premium Income CHINA NON-LIFE INSURANCE MARKET NON-LIFE INSURANCE SEGMENTATION, 2005-2012 The country non life insurance market is dominated by property and casualty segment with the contribution of ~% in 2012†¦ The motor vehicle is the leading contributor in property and casualty segment China non life insurance market is dominated by property and with the share of around ~% in 2012.The motor vehicle casualty segment with the insurance is divided into two types such as compulsory contribution of ~% in 2012. liability and voluntary insurance. The second largest contributor in property and casualty segment is property with the share of approximately ~% in 201 2 followed by agricultural insurance with the share of ~% in 2012. The health insurance market contributes ~% of the non life insurance industry in China in 2012. The private health insurance coverage in the country has expanded and now it covers approximately ~% of China’s population. The health insurance coverage in the country has grown at an impressive rate of ~% annually over the past 10 years.The number of health insurance plan in the country has also increased from around ~ in 2008 to over ~ in 2011. 16  © This is a licensed product of Ken Research and should not be copied Figure 2: China Non life Insurance Market Segmentation by Property and Casualty and Health Insurance on the Basis of Direct Written Premium in Percentage, 2005-2012 100. 0% 90. 0% 80. 0% 70. 0% 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0. 0% 2005 2006 Health Note:Non-Life Insurance is in Premium Income In Percentage % 2007 2008 2009 2010 2011 2012 Property and Casualty CHINA PROPERTY AND CASUALTY I NSURANCE INDUSTRY CHINA PROPERTY AND CASUALTY INSURANCE CLAIM PAID, 2005-2012The Chinese property and casualty insurance industry has paid USD ~ million claims in 2011 in which approximately USD ~ was paid in August 2011 which was recorded as the highest claim paid in the year†¦ In 2009, the combined ratio of property and casualty insurance industry has improved to ~% and this positive trend in the market is accelerated in 2010 and in the first half of 2011 in which the industry has recorded the combined ratio of ~% and ~% respectively for the top three insurers in the country which include PICC, Ping An Property and Casualty and CPIC Fiscal. 17  © This is a licensed product of Ken Research and should not be copied Figure: China Property and Casualty Insurance Market Claim Paid on the Basis of Direct Written Premium in USD Million, 2005-2012 50,000. 0 45,000. 0 40,000. USD Million 35,000. 0 30,000. 0 25,000. 0 20,000. 0 15,000. 0 10,000. 0 5,000. 0 0. 0 2005 2006 2007 2008 20 09 2010 2011 2012 Note:Property and Casualty Insurance is in Premium Income CHINA MOTOR INSURANCE INDUSTRY CHINA MOTOR INSURANCE MARKET FUTURE OUTLOOK AND PROJECTION, 2013-2016 †¦The country automobile insurance market is expected to earn direct written premium of USD ~ million in 2016 which is up from USD ~ million in 2011. This is due to an expected increase in the car ownership in the country as there are only 35 million cars for the population of ~ billion in 2011. 18  © This is a licensed product of Ken Research and should not be copiedFigure: China Motor Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 1,80,000. 0 1,60,000. 0 1,40,000. 0 USD Million 1,20,000. 0 1,00,000. 0 80,000. 0 60,000. 0 40,000. 0 20,000. 0 0. 0 2013 Note:Motor Insurance is in Premium Income 2014 2015 2016 19  © This is a licensed product of Ken Research and should not be copied ASIA-PACIFIC INSURANCE INDUSTRY FUTURE OUTLOOK †¦Overall, the market of the Asia-Pacific insurance is expected to grow at a CAGR of 11. 2% from 2013-2016. The market in the near future is expected to witness consolidation and higher competition level with the entrance of more global players in the market†¦ ASIA-PACIFIC INSURANCE INDUSTRY FUTURE PROJECTIONSBY GEOGRAPHY, 2013-2016 The Asia-Pacific Insurance industry is expected to grow at a CAGR of 11. 2% from 2013-2016 on account of rising population in the emerging market of Asia such as India and China. It is anticipated that the total direct written premium of the insurance products will increase to USD ~ million in 2016 from USD ~ million in 2012. Table: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Countries Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand 2013 2014 2015 2016 20  © This is a licensed product of Ken Research and should not be copiedMalaysia Indonesia New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total CHINA INSURANCE INDUSTRY FUTURE PROJECTIONS, 2013-2016 In the base case scenario analysis the insurance industry in the country is expected to grow at a phenomenal rate of 17. 7% in the next four years and is predicted to record the direct written premium of USD ~ million in 2016†¦ The worst case scenario analysis assumes that the country insurance market is anticipated to grow at a marginal rate of 6. 9% from 2013-2016 in comparison to the historical years†¦ The best case scenario analysis predicts the remarkable growth of 28. 5% in the next five years.The country’s insurance market is expected to record direct written premium of USD ~ million by 2016. 21  © This is a licensed product of Ken Research and should not be copied Figure: China Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 8,00,000. 0 7,00,000. 0 6,00,000. 0 USD Million 5,00,000. 0 4,00,000. 0 3,00,00 0. 0 2,00,000. 0 1,00,000. 0 0. 0 2013 Worst Case Note:Life Insurance is in Premium Income Non-Life Insurance is in Premium Income 2014 Base Case 2015 Best Case 2016 22  © This is a licensed product of Ken Research and should not be copied CAUSE AND EFFECT RELATIONSHIP BETWEEN DEPENDENT AND INDEPENDENT FACTORS PREVAILING IN CHINA INSURANCE MARKETTable: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of China Insurance Market Industry Factors Strict Government Regulations and Support Increasing Population Market Impact Comments ? Cause: ? Positive Effect: ? Cause: ? Effect: ? Cause: ? Effect: ? Cause: ? Positive Effect: ? Negative Effect: Increasing Consumer Spending Intensifying Competition DISCLAIMER No part of this manual or any material appearing may be reproduced, stored in or transmitted on any other Web site without written permission of Ken Research and any payments of a specified fee. Requests to republish any material may be sent to us. 23  © This is a licensed product of Ken Research and should not be copied

Intercultural Essay Example | Topics and Well Written Essays - 500 words - 1

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Observation is a crucial element in ensuring successful provision for Essay

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Financial Markets & Risk Essay Example | Topics and Well Written Essays - 3500 words

Financial Markets & Risk - Essay Example According to this act, FSA is responsible for the authorisation and prudential supervision of banks and building societies. It is also responsible for the supervision of following agencies: It is also entrusted with the supervision of financial markets, securities listings and of clearing and settlement systems. At the same time, it may be responsible for conducting operations in response to problem cases influencing firms, markets and clearing and settlements systems under situation when the nature of the operations was agreed according to the provisions of the tripartite Memorandum. It is also responsible for regulatory policy in these areas, including that aimed with an objective to promote the resilience to operational disruption of authorised firms and Recognised bodies. It has also advisory responsibility and hence it should guide on the regulatory implications for authorised firms and recognised bodies of developments in domestic and international markets and of initiatives, both domestic and international level. Global financial problems may come at an unexpected intervals and hence they are equipped with necessary flexibility in their duties. For example, under exceptional circumstances FSA has responsibility to undertake official financial operations to limit the risk of problems in or influencing particular institutions spreading to other parts of the financial system. It should also ensure proper communication with standing Committees of the Bank of England and HM treasury to co-ordinate the response to a crisis. Like FSA, the Bank of England was also entrusted with huge responsibilities to bring financial stability in United Kingdom. The Bank of England is responsible for the predicting unforeseen challenges of the financial system as a whole. It also ensures the stability of the monetary system as part of its monetary policy functions. It should act in the markets to deal with fluctuations in

Women education In Saudi Arabia , Sustainable Development and NGO's Essay

Women education In Saudi Arabia , Sustainable Development and NGO's - Essay Example Nevertheless, education for women is still being implemented in Saudi Arabia (Hamdan, 2005, p. 43). Additionally, UNEP released statistics that depicted an approximate and predicted adult illiteracy rate of 2.5% for women between the years of 15 to 14 (UNEP, 2011, p. 1). The most upsetting factor of the crisis in the country’s education sector is the inability to offer the needs for the progress of Arabian women. A 2002 Arab human development report indicated that women’s education does not regularly train students, means of assessing information to become innovative. As a result, graduation rates become high and eventually face a low employment rate. A huge proportion of graduate women become unemployed after finishing their educational courses (Hamdan, 2005, p. 43). The current Saudi school structure works for both men and women with the aim of reducing illiteracy rates in the country, and increasing employment opportunities (Joseph and Najmabadi, 2003, p. 230). The American school structure was gravely considered by the Ministry of Education when drawing out the local school curriculum and structure for Saudi Arabia. This approach was considered due to the economic disruption following the discovery and exploitation of oil have rise to a trend that fostered education abroad. Women’s education at all levels, elementary, high school and tertiary, were under the Department of Religious Education until 2002. The Ministry of Education took over the education scene in the country to guarantee women’s education non-deviation from the initial objective. Currently, higher schooling is offered by seven universities, several academies for women, an institution of public administration and 17 teacher-training colleges (Hamdan, 2005, p. 44). Women’s education encounters several barriers to its implementation and development. Women’s liberties and duties in Saudi Arabia have faced equal controversy amongst its conformists and progressives

Macro & Micro economics Essay Example | Topics and Well Written Essays - 1750 words

Macro & Micro economics - Essay Example However, the growth rate slipped immediately in the next year. This fluctuation in the growth rate of the economy has been a cause of concern for the government of China. It prompted the government to make policy changes that would boost up economic activities in the country. This paper has been presented with the purpose of representing an analytical study of an article named â€Å"China May CPI slows, gives room for easy monetary policy† written by Chiang  and Standing and published by One America News on June 8, 2013. The article is a report on the Chinese economy, its economic growth and the responses of the government with regard to such fluctuation in the growth of the economy. The Central Bank of China has adopted easy monetary policy as well as expansionary fiscal policy to heighten productive activities. This paper revolves around the major issues that have been identified as the primary reasons behind slackening of the country’s growth rate and presents a di scussion of the relevant government policies. The effect of the economic downturn on the Chinese society has also been discussed in this paper. Discussion on the economic problem issue China showed an average growth rate of 7.7% in the first three months in 2013 (BBC, 2013). Although this is not a very poor growth rate, the main concern is fall in growth rate and weak aggregate demand as shown by the country’s purchasing power index (PPI) (Chiang  and Standing, 2013). Q2 has reflected slower growth rate than Q1 in the current year (2013). In May 2013, annual inflation rate of consumer price index (CPI) has reduced to 2.1% from 2.4% in April (Chiang  and Standing, 2013). This has aroused concern that the economy might further slowdown in the third quarter of 2013. According to forecasts by some economists, it would become difficult to attain the target annual growth rate of 7.5% (Chiang  and Standing, 2013). The measure of different variables representing the output of d ifferent sectors in the economy is showing a downward trend. This implies that there is not much chance for the economy recover immediately. Private investors are facing high cost of financing business activities which is discouraging entrepreneurs to make new investments. This highlights the room for possible interest rate cuts by the Central Bank of China. It has decide to â€Å"pursue interest rate liberalization† (Chiang  and Standing, 2013) in the latter half of 2013 with the aim of protecting and increasing consumption growth and supporting private investment. Causes of the problem The article considered for the study, highlights certain issues that have led to the fall in economic growth rate in China. At present the rate of infest in the economy is high, due to which investment activities are being suppressed. This has led to low income for the workers in the economy resulting in lower demand. On the other hand warm weather conditions have led to good agricultural p roduce and high supply of vegetables. Therefore price of vegetables has fallen by 13.8 % in May 2013 (Chiang  and Standing, 2013). Figure1: Fall in Aggregate demand in China (Source: Author’s creation) Aggregate supply (of food items) has increased in the short run (owing to good harvest). But the consumers are left with less disposable income, therefore demand for the produce has fallen (as shown by the shift in aggregate demand curve form AD1 to AD2). Hence prices have fallen from P1 to P2. This has led to fall in the amount of contribution of the agricultural sector in the total GDP and overall GDP has declined. Another important reason behind the fall in GDP growth rate is the over dependence of China on its export sector. China has followed export

Evaluation Essay Any topic Example | Topics and Well Written Essays - 500 words

Evaluation Any topic - Essay Example My brother's fish tank has the correct mix of fish, is clean, and is a pleasure to watch. An aquarium is first and foremost a place where the fish will spend their entire life. Having the correct combination of species is critical to maintaining balance in a fish tank. Some fish will be more aggressive and attack smaller fish. In addition, the tank needs a well balanced mixture of bottom, middle, and top feeders to keep the tank clean of uneaten food. Aquarium expert Thomas Narten reminds us, "Not all species of fish mix well with others". My brother has a Beta that feeds on the top, tetras and lionfish to feed the middle, and catfish that live as bottom feeders. They are not aggressive and stay in their own territory. My brother has provided a well balanced environment for these fish to spend the rest of their lives in. The fact that the fish will spend their entire lives in this tank demands that it remain clean. My brother has chosen to utilize an undergravel filter. This arrangement draws water through the gravel at the bottom of the tank and the settling debris is used to feed the plants and bottom feeders that reside there. The test of a filtering system is water clarity and in this my brother has succeeded. The water is spotless with no floating debris.

Civil Law Essay Example | Topics and Well Written Essays - 3250 words

Civil Law - Essay Example The basic purpose of punishing someone is to make him understand that he has committed a wrong and he should be made to pay for it, though not in terms of cash or something but in a manner that will do some good for this human being in the long run. Punishments have to be understood in the proper context, so as to state the least. We will delve further through the course of this paper as to how punishment is linked with morality, equality, rights of human beings and just about everything that comes under the banner. Equality is man's most perilous metaphor whereby it has haunted and made a fool of him for a number of years now. Equality and indeed justice takes into account a number of differences amongst people, top of the list of which includes the racial ones that are either ancestral which may be hereditary or inborn as well as cultural, i.e., procured from society after one's birth. This one can usually be changed or at times totally removed with the enforcement of changes that might be social in nature. These changes are in essence, autonomous of man's laws, rules, regulations and customs, except over a period of many eras. Justice particularly has a number of characteristics as it basically chalks down the conditions and necessities that are linked up with it. Justice within a society is not all about being fair but also holds a great deal of importance on being just and timely. It is a true saying that justice delayed is justice denied; for this reason justice takes both these things wh en it is defined in the truest sense of the word. Justice is radically associated with the mighty men - the rulers and the ones who govern a particular area or a regiment of soldiers. Justice thus holds supreme importance for these brave men as they are the ones who lay the foundation for the society to be a part of the equal rights and hence the fairness fable in general. The concepts of civil rights and of civil law are both functions of the concept of civil society whereby it is that bubble of private action free of government control. It is not free of government action, because government action secures the nature of civil society by the protection of persons against criminal wrongs. The essence of civil society is thus that people are left by government to regulate their own pursuits of industry and improvement, while the government protects the citizens from criminal wrongs of violence, theft, fraud as well as many others. The most violent and heinous crimes committed anywhere in the world are by the youth. These are organized and in a proper manner, with no shortcomings at any end on anyone's part. Research has found out that the youth are the ones who are most definitely involved in this menace. At times, the politicians are the ones who use them in order to hold protests against any civil or governmental norm prevalent in a certain region of the world which enrage these youth. Studies have shown that the extreme cases of criminal behaviours all involved having youth at their expanse. They not only bring with them terror for the common citizens but also introduce a huge dust of alcohol, abuse of drugs and many other forbidden things in the society. The future generation should be made to stay away from this peril as much as possible. Studies show that these young people are those who are

Nazi medicine Research Paper Example | Topics and Well Written Essays - 1500 words - 1

Nazi medicine - Research Paper Example The resulting research that came about through the Nazi experiments was eyed with great suspicion and scientists even today are asked to justify their use of the Nazi methods when they employ them. It is viewed as something that is not socially responsible and is an abuse to the science community itself. So the question that arises is that is it alright to use the work of Nazis in the medical field or is it a moral degradation in itself? (Adshead, and Brown 109). The very fact that the ‘data’ that was obtained by the Nazis to conduct their research was nothing but torture and pain is a factor in itself to condemn the Nazi research and its subsequent scientific hypotheses. The dead bodies were frozen, sterilized and inseminated and hence the bodies were more of a subject to torture and humiliation. This situation can very well be put in to an example- it is just as a human consumes a piece of meat and gets rid of the remains in a shabby fashion; the medicines and other research depict the same- the bodies were used to the benefit of the Nazis and then the remains discarded as ‘unwanted’. The subjects were tortured in multiple manners: Firstly, they were made to be observed against their will and were dragged into dangerous experiments. Secondly, the experiments were designed in such a manner that the subjects would deliberately be put through a lot of suffering and fatal outcomes. Thirdly, all the subjects had to nec essarily undergo mutilation and tremendous pain. Amidst such situations, how can one justify the use of the results obtained by these Nazis? (Evans 357) The biggest controversy in using the research of the Nazis revolves around the passive external re warming and active external warming. The passive external re warming is when the research methods use the warmth of the patients’ bodies to complete the research whereas the active external re

Recruiting and Selecting Employees Who Look Good and Sound Right Essay Example for Free

Recruiting and Selecting Employees Who Look Good and Sound Right Essay Present day business industry is highly dependent on the general success of the people within organizations who are commonly referred to as the human resource. Important to note is that the human resource prospect is defined under two categories within any given organization; firstly there is the employees of an organization themselves and secondly the people in management who are responsible for promoting the values of the organization through ensuring that human aspects within an organization are satisfactorily taken care of (Fernandez-Araoz, Groysberg and Nohria 2009 ). With regards to the aforementioned details, the human resource department is usually tasked with the responsibility of bringing in new employees whose skills sets suit an organization’s mandate and values in general through a rigorous recruitment and selection process. During the recruitment and selection process of prospecting employees, companies usually set out on a hunting mission for the crà ¨me de la crà ¨me who are available in the job search market. How an individual who is in pursuit of a job opportunity dresses and carries themselves in an interview and further their conversational skills greatly determine whether or not an organization will hire them; this is what is described as looking good and sounding right in this paper. How an employee is dressed decimates into how they think and interrelate with customers in an organization thereby offering quality services and creating a conducive business environment in return. The underlying chapters of this paper will be keen on reflecting on the prospects and influences of dressing smart and sounding right with an inference on analysis and compilations from multiple academic literatures on the same topic while at the same time illustrating the influences of looking good and sounding right through the lens or organizational examples. Having a human resource that thinks right and has an exquisite recruitment strategy in place is what defines organization’s competitive edge in the current market; it is every organization’s dream that its employee’s appearance influences how the customers relate to the company on a broader perspective thus promoting their brand in the long run (Warhurst 2012). The prospect of looking good and sounding right within organizations Human resource practitioners will agree to the fact that a great deal of time goes into activities and processes related to recruiting and selecting new staff for a particular position in an organization. Many at times the long durations tied to recruitment are connected to the ideal of companies to not only want to source for staff who are knowledgeable about what their companies deal in but also look the part of any given brand and are easily approachable by customers. Staff selection during a recruitment process of an organization is one of the most vital decisions that the organizations have to undertake to ensure that their normal operations are running smoothly (Taylor 2008). Businesses have to know what they are clearly looking for in an employee before signing them up, not only how red-hot the skills of an individual seeking employment look will determine the long-term success of an organization and recruitment of the correct person but also the most important aspect is how t hey look and how they carry themselves while conversing with customers in an actual business setting (Quast 2012). It is critical that organizations have systems and a recruitment process in place which is capable of accessing how the applicants of a particular job opening portray these traits before their full time absorption by any organization. Take the case of Richer Sounds an electrical retail chain store with over 53 stores across the nation: it has in place a three stage recruitment process for new staff seeking any job opportunities within the company. The first stage of recruitment involves placement of advertisements at the stores windows and also through the company website where people who are interested are requested to e-mail a CV to the company. The former kind of advertisement mainly targets people who pay attention to their brand and customers who are regular visitors to the shop thus are knowledgeable about the products (Fisher 2014). On the other hand, the latter advertisement is aimed to attend to a greater pool of applicants irrespective of their familiarity with Richer Sound s products. Considering the advertisement strategies imposed at this point, it is evident that a great pool of applicants will be willing to be signed; the most integral part of this initial stage is demonstrated through a store manager’s initial interview who is keen on sorting the applicants to remain with those who look the part through analysis of their dress code and personality. Operations director John Clayton suggests that, â€Å"Richer sounds hires on the basis of personality then later train for skills (Martin and Whiting 2010).† These instance posters a scenario where people get accessed on the basis of how they look even before a company takes a look and considers an individual’s qualifications. Second in line of the recruitment strategy is a paid trial day for an applicant which in some circumstances stretches beyond the one day period. Here, the applicant is accessed on whether or not they are consistent in their dressing and how they sound when conversing with customers. Upon completion of the trial stage, other members of a particular store are asked on their opinion of what they think about a new recruit and whether they embody the company’s aspect of looking good and sounding right (Nickson and Dutton 2005). Last in queue of the recruitment process is stage three where an applicant’s qualifications are now accessed to see how suitable they are for the job after considering that the individual’s personality is suitable for Richer Sounds. From the Richer Sounds case, it is evident that the way companies approach their recruitment processes over the years has greatly revolved and now companies are keen on how an individual looks and how their conversa tions sound before customers. Irrespective of the costs of recruitment, companies are willing to dig deep into their financial coffers so that they can get the right group of employees; Williamson argues that, â€Å"it is arguably more expensive hiring wrong people in an organization as opposed to the cost of having a stringent recruitment strategy in place that is time consuming (McMillan 2014).† Richer Sounds is just one among the many companies that are currently inclined towards accessing applicants for job openings on the grounds of how they look and opulence they execute through their conversations with customers. On a broader perspective, how an individual looks has a great influence on the operations of people within different organizations; important in the process of advocating for employees who look good is an employer who serves up to their word of promoting smart dressing for the workplace by leading as the actual ambassador of what their brand should be defined as. Looking good while pursuing a job opportunity has positive impacts and a higher probability one is going to achieve the job, people will ascribe good qualities on the prospect of your perceived appearance thus want to always associate their company with an individual who looks good. A Macquarie University research carried out in both the United Kingdom and United States suggests that looking good improves the chances of one scoring a job opportunity and also is responsible for boosting one’s career once they are employed in different organizations (Arkin 2007). The research further suggested that employees who look go od and sound right are usually rated highly by their employers and the probability of them losing their jobs is usually minimal. In essence, looking good attracts a myriad of premium rewards for both the person and organization at large whereas those who are unattractive and have a poor personality in most situations lose out on several job opportunities (Boxall 2008). Moreover, having in place a clearly defined staff is the key component that ensures customers to a particular organization have a clearly defined experience that warrants their coming back for the same services once again and consequently creates a solid positive internal culture of an organization. It is ideal that organizations have a culture that existing employees are well versed with so that when the recruitment process for new staff is commenced, it is one that runs smoothly. New recruits to any given organization should find in place, a culture where staff are usually well dressed and converse excellently with customers thereby prompting an easier transitioning process for new staff into the operations of an organization. Efficiently articulating a particular dress code for existing staff is key in determining and sourcing for new recruits who will promote the same culture and easily get acclimatized with the practices of any given organization which in return will yield posit ive results for the same company (Churchard 2010). Indeed, some positions within an organization do require employees with a particular set of skills usually defined as experience and qualifications for a specific job but setting out a hunt on this basis is the first step that organizations usually make during their recruitment process; companies should attend to the recruitment process with a different perception where the individual’s character is assessed for they are buying into the person’s character and not their qualifications. Possessing both this attributes is a plus for any prospecting employee and is a sure combined package to score one a job (Faccini and C 2010). Arguably, the perception of looking good and sounding right in a respectable number of business circles usually refers to an individual’s physical appearance, a definition that has triggered a trend of the working class turning to the gym as a means of staying fit. The service sector for instance has rampantly changed over the years where unlike the previous years where service providers never met their customers currently employees are always in constant contact with their customer; a fact that influences the need for staff to dress the part and portray their organization in positive light (Emott 2007). How affluent and efficient an employee’s speech is determines the placement of any given company as a brand to all its customers which is greatly dependent on the employees. The enforcement and prescription for employees to embody both the aspects of looking and sounding good is referred to as aesthetic labour and this characteristics play an integral point of how new e mployees to any organization relate with customers. Companies have learnt that before their recruitment process, that for the success of any business to be achieved, recruitment of workers should be expressively based on labour aesthetics of any individual before they are taken in. Finding and incorporating the right people with this kind of characteristics is a daunting task for many organizations and the only means of recruiting an individual with the right skill set involves having in place a well structured selection system during the recruitment process (Hofstede 1997). However, the daunting recruitment process does not stop at this point, it is equivocally difficult to select out a specific candidate who suits the needed requirements for your organization. Fast forward to the case of Nestle Group of companies which has a human resource policy that the company abides by whenever any recruitment is being carried out in their group of companies across the world (Kaplan 1992). Their recruitment processes is respectful of the varied legislation practices of different countries but above all the recruitment strategy is underpinned under the mantra of looking good and sounding right as a means of selecting new recruits into various positions of their wide range of companies across the globe. Underpinned in the promotion of its human resource policy, is the responsibility for employees of the organization to be capable of satisfying the needs of its customers (Hutchinson 2003). The human resource department is tasked with the requisite responsibility of proposing individuals that suit the aforementioned requirements. Furthermore, the Nestle Group has in place a mentorship programme that offers guidance to new recruits into the organization so that the company’s mission statement can be achieved in the simplest ways possible after assessment of recruits on the basis of how they look and sound good before the customers (Letmathe 2008). This partnership and mentorship programme between existing staff and new incoming staff is an efficient means that has been in use for a very long period of time for people recruitment and their management in general. The recruitment cases of both Nestle Group and Richer Sounds demonstrates that companies are currently turning to the looking good and sounding good trait in applicants as a means of selecting who is suitable for any given position within their organizations (Paton 2008 ). This trend has been fuelled by the fact that there exists a broader pool of unemployed individuals with right qualifications but they cannot secure for themselves any jobs; looking good and sounding right is the ideal means used to disqualify this wide pool of applicants. Looking good and sounding right has become the ideal filtering tool for companies when they are sourcing and on a search for new employees through a well structured recruitment process. Irrespective of the fact that recruitment of new staff by the human resource department is a difficult task, clearly defining what the human resource management is looking for in a customer then crafting a description of the same as a recruitment step is usually in strumental in attracting the right cadre of individuals any given company is keen on hiring despite the fact that there are many people out there looking for jobs. Looking out for these two qualities in individuals is the first step towards narrowing down the wide numbers of applicants for any given job so that any company’s job opening can remain with only potential clients that can meet the values of the company while at the same time promoting the mission statement of the same company. Categorical in the recruitment process and requirements for applicants is the prospect of an applicant having passion for whatever job they are trying to achieve, their commitment to any given company, their general problem-solving skills and lastly any relevant experience they have in the field being advertised (Ritzer 1985). Clearly outlining what as an organization you need in an applicant is instrumental in helping organizations know how attentive applicants are to detail as opposed to only looking at their resume which offers little or rather basic information about an individual. Before conceptualizing and kick-starting any particular recruitment and selection process, an organization must first attune its strategy to be relatively inclined to the values of the organization and is fully supportive of the organization’s culture. Pre-employment testing like the case of Richer Sounds is an ideal way in determining whether or not a company is making a wise decision by investing into an individual with the set capabilities of looking good and sounding right so that an organization can fully accrue its set goals (Gilmore 2000). The people recruitment strategy is a determining factor on whether a company is going to succeed or fail and also influential on how employees develop during their stay in a particular organization thus there general motivation that in return bears fruit through excellent service delivery to customers. New recruits embodying the prospect of looking good and sounding right is highly dependent on how the company itself is culturally inclined towards the promotion these two traits. References Arkin, Anderson. Street Smart . People Management , 2007: 28-29. Boxall, . Purcell. Strategy and Human Resource Management. London : Houndsmills: Palgrave McMillan , 2008. Churchard, Christopher. Power brokers. People Management , 2010: 38-40. Emott, Drucker. CSR Laid Bare . Harper Business , 2007: 14-32. Faccini, R., and Hackworth C. Changes in output, employment and wages during recesrecessions in the UK . Bank of England Quarterly Bulletin, 2010: 43-50. Fernandez-Araoz, Claudio, Boris Groysberg, and Nitin Nohria. The Definitive Guide to Recruiting . Harvard Business Review , 2009 : 14-21. Fisher, Annie. How to spot the right cultural fit in a job interview. August 8, 2014. http://fortune.com/2014/08/08/job-interview-cultural-fit/ (accessed January 16, 2015). Gilmore, Stewart. The McDonaldization of Society: New Century Edition. London : Pine Forge Press, 2000. Hofstede, George. Cultures and Organisations: Software of the Mind. London : McGraw Hill , 1997. Hutchinson, Purcell. HR roles and responsibilities: the 2010 IRS survey. IRS Employment Review , 2003: 14-17. Kaplan, Norton. The balanced scorecard. Harvard Business Review , 1992: 71-79. Letmathe, P. Brabeck. The Nestle HR Policy Report . Policy Report , New York : Ndestlesy Inc. , 2008. Martin, Malcolm, and Fiona Whiting. Human Resource Practice . In Recruitment and Selection , by Tricia Jackson, 109-157. London : CIPD , 2010. McMillan, Andrew. Recruitment at Richer Sounds . London : Cambridge University Press , 2014. Nickson, Dennis, and Eli Dutton. The importance of attitude and appearance in the service encounter in retail and hospitality. Managing Service Quality, 2005: 195-204. Paton, Oliver. Gen Up: How the Four Generations Work Together,. Joint Survery Report , London : CIPD , 2008 . Quast, Lisa. Companies Are Using Social Media In The Hiring Process. May 21, 2012. http://www.forbes.com/sites/lisaquast/2012/05/21/recruiting-reinvented-how-companies-are-using-social-media-in-the-hiring-process/ (accessed January 17, 2015). Ritzer, Solomon. Packaging the service provider. Service Industries Journal, 1985: 65-72. Taylor, Kate. Recruiting and Hiring Top-Quality Employees. August 23, 2008. http://www.entrepreneur.com/article/76182 (accessed January 16, 2015). Warhurst, Chris. Employee Screening nad Selection . References for Business , 2012: 134-152. Source document

Role of Strategic Management in Planning

Role of Strategic Management in Planning INTRODUCTION While some firms adopt strategic opportunism as a strategic planning method used mainly by senior managers who use it to assess their firms capacity to recognize and respond to identified windows of opportunity (or threat) that may require strategic changes as it would be pointless identifying strategic opportunities that the firm lacks in the competencies and resources to take advantage of them, others firms use human judgment in making operational decision making, this could involve situation assessment, actions taken to gather additional information, generating plausible hypotheses and other alternatives which either depicts Strategy as science or art. This paper aims at analyzing certain terms and elements in strategic management that explain business strategy as an art or science, terms like design, rational, hypothesis, culture or creativity etc. It also explains situations where organisations are presented with either luck or opportunity and how to what extent judgment is exhibited in the strategic decision making. ANALYSIS Role of Strategic Management Elements in planning and decision making According to Constable (1980) Strategic Management addresses the management processes and decisions which determine the long-term structure and activities of the organisation. This further explains that strategy incorporates planning activities on Management Processes which encompasses both the formal structured process (prescriptive approach) and the informal structured processes (emergent strategy change). This provides the Managers the ability to spot opportunities for and threats to the organisation in its future plans and the changing environment in which it operates. As information is seen as input into an organisation process which produces decisions as the output, the strategy of an organisation e.g. avoiding a threat or exploiting an opportunity determines the Management Decisions that need to be taken that is expected to be a solution of apparent problems, the feasibility and the requisite resources for implementation. Beck (1987) argued that many British companies lack strategic clarity, this comprises of mainly three reasons: Thompson (1993) explains, The difficulties of forecasting in todays business environment; the lack of managerial competence in many companies; and above all, the frequent absence of strong leadership from the top. Other reason maybe the distinction between established views incompatible with the formal and elaborate strategic planning systems present in the 1960s and 1970s, however failed to work in most cases. Strategic Planning helps organizations answer series of questions about how well the company is doing and why, where it should seek to develop in the future. Thompson (1993) further argued that, Most successful companies strategically are likely to be those that are aware of where they are and of what lies ahead, those that understand their environment and those that seek to achieve and maintain competitive advantage. Also, Thompson (1993) asserted that whatever strategy exist in an organisation, organisations ace in strategic thinking are more distinguished from their less successful competitors by a common pattern of management which are highlighted below: Key success factors inherent in the economics of the business are effectively identified than their competitors. Markets are segmented to gain critical competitive advantage. The segmentation is based on competitive analysis conducted on the markets, thus, segments are separated according to its strengths and weaknesses of different competitors Successful companies base their strategies on the measurement and analysis of competitive advantage. Good strategic thinking implies an understanding of how situations will change over time, thus companies can anticipate their competitors responses. Companies are able to give investment priorities that promise competitive advantage While one may be agreeable that business strategy initiatives depend on a mixture of luck and judgment, opportunism and design to succeed, different views need to be analyzed as business strategy itself can be a combination of the aforementioned features. This is because a good business strategy will succeed irrespective of the factor of luck but a good business strategy has to be able to take advantage of opportunities, be planned with great insight and judgment without relying on the good wind of luck to see it through. Companies with superior business strategies who dominate their various industries are there because of their unique insights and capabilities in the formation and execution of their strategy. However luck seems to plays a role in performance of a companys strategy. Three broad scholastic perspectives exist for explaining the relationship between luck and business strategy; Kovenklioglu and Greenhaus, (1978) held the view that luck plays little or no role in the performance of a strategy, this is articulated by Day and Maltby, (2003) who held the view that a belief in luck is irrational. The last perspective believes that luck plays a substantial role in the long run by creating short-term success which then positively positions a company for superior performance in the long run or that luck may create a lasting success via a combination of lucky efforts. This is synonymous with Mintzbergs positioning school of thought which places a company within the context of its industry and tries to devise ways to improve its strategic position within that industry. A typical case study is the position of Microsoft in the software industry; which came about when by a stroke of luck, Paul Allen, saw a magazine in a grocery store with a picture of the new microcomputer , the Altair made by a company called MITS and decided to write a BASIC interpreter for it. This led to the formation of Microsoft which grew to become the biggest software company in the world. This position has enabled them to implement successfully their business strategy of copying the products of their competitors and making it better using the vast resources available to them, then bundling it with windows to force it down the throat of consumers in order to kill off the competition. Another illustration is the browser wars between Microsoft and Netscape in 1997, when incumbent king of browser, Netscape Navigator faced an unprecedented challenge from software king, Microsoft. Netscape navigator had the dominant market share (about 80%) which Microsoft wanted; it devised a business strategy which involved licensing Mosaic an existing browser as the platform for its internet explorer. Then it decided to give away internet explorer by bundling it with the Windows 95 plus. This was effective in stealing Netscapes market share because Netscape charged for its browser. It would have been impossible for Microsoft to keep its rigorous monopoly in the software industry if it werent for its strategic position which it had already attained through windows at a time when microcomputers was just been born. It has been said that the reason Microsoft became the biggest software company was bill gates being at the right place at the right time. Legend has it that it was Digital Researchs Gary kildall that was first contacted to supply the software for the new IBM PC but as matter of luck he turned it down preferring to fly in his airplane. This made IBM to contact bill gates who went on to supply PC DOS which was developed into windows. The table below represents the attributes of Strategy as design and Strategy Judgment, each of which exhibits the characteristics of Strategy as Science and Strategy as art respectively. STRATEGY AS ART OR SCIENCE..The concept of Strategic Thinking The term Problem Solving is most often scientific related which is an activity of finding the solution to a problem; this could also be defined with respect to strategic problems where the problem solving activity is finding a solution. Hitt explained, the concept of strategic thinking where Mintzberg also argued that Strategic Planning is an analytical process aimed at programming already identified strategies which exhibits strategy as a science, however, strategic thinking is believed to be a synthesizing process, utilizing intuition and creativity, whose outcome is an integrated perspective of the enterprise, this sees strategy as an art. Strategic Thinking denotes all thinking about strategy with specific characteristics. According to Nasi (1999) Strategic Thinking extends both to the formulation and execution of strategies by business leaders and to the strategic performance of the total enterprise and for Mintzberg (1994) who is one of the foremost advocates of strategic thinking, argued that, the term is not merely alternative nomenclature for everything falling under the umbrella of strategic management; rather it is a particular way of thinking with specific characteristics. On both two issues discussed on whether strategy is seen as a Science or an Art, a whole spectrum of views exists most of which are highlighted in the table below on the aforementioned two schools of thought on strategy. Business strategies are usually developed from a companys mission statement which is basically a statement of a companys dream and aspiration for its future based on its plans. The success of any strategy however depends on its implementation this is because strategy is more an art than a science. Science test for facts using established laws of physics whereas art deals with expressions of concepts, thoughts and ideas. In this way it mostly mimics the use of business strategies not as a way to test for the success or failure of a companys goals but rather a way to express the desire of its management for the future of the company. However, there are aspects of science in the way strategies are formed, planned and executed. The entrepreneurial school of thought sees strategy as a visionary process, it stresses the use of a cocktail of insight, judgment and intuition in the formation of strategies and this articulates the importance of judgment in business strategy For example in the decisive battle of the ball-point pen between Bic, Parker, Sheaffer and Waterman, Bics strategy that eventually won the battle was based on a very important judgment of the market need in devising a cheaper and better version of the biro pen. Bic realized that the cost of a Parker Pen which dominated the market at the time was exorbitant and it devised a strategy to reengineer its design to produce cheaper pens which could be sold for a few cents and this meant they were disposable and as such were widely adopted. Burnes (2004) wrote, Mintzberg views approach to strategy as a virtue, he compared art of strategic making to pottery and managers to potters who mould the clay with the shape of the object evolving in the hands, this can be reflected in Emergent Strategy, strategy that evolves according to need which is constantly adjusted and adapted and Crafting Strategy, developing strategy according to the needs of the organisation and environment, thus seeing strategy as an art. 205. Contrarily, Burnes further argued through the works of Hoskin (1990) who claimed Pennsylvannia Railwayss executives, Herman Haupt should be given credit for initiating a business strategy which made use of full interactive play of grammatocentrism and calculability, thus implying strategy to be a quantitatively-oriented discipline which focuses on numerical analysis for market forecast , thus portraying strategy as a science Mintzberg et al, (1998) developed in the early 1960s two schools of thought for strategy; Planning school and Design school. The Planning school was pioneered by Igor Ansoff (1965) which was based on formal procedures, formal training, formal analysis and quantification this was based more on abstract thinking. The Design school, pioneered by Chandler (1962) placed more emphasis on appraisal of organisations opportunities and threat. Mintzberg also laid out the five main interrelated definitions of strategy The Strategy as a perspective mentioned above sees strategy as an abstract concept, mainly existing in peoples mind, which characterizes strategy as an art. In addition, Mintzberg et al, Johnson (1987) further argued strategy as a social science through three views of business strategy JOHNSONS VIEWS OF STRATEGY Rationalistic view: sees strategy as an outcome of series of preplanned actions designed to achieve goals. Emphasizes strategy as a science i.e. systematic and rational attributes Adaptive or incremental view: sees strategy evolving through an accumulation of relatively small changes over time. Emphasizes strategy as art i.e. dynamic and creativity Interpretive view: sees strategy as product of individual and collective attempts to make sense of. Emphasizes strategy as a science i.e. interpreting, evidence, past events etc. Burnes (2004) continued the argument between strategy being an analytical stream (formulating strategy rather than prescribing) or prescriptive (controlled, prescriptive process on strategy based on rational model of decision making) through Mintzberg et al, Johnson work on whether strategy is a process or an a rational phenomenon but the classifications of various approach to strategy was absent which Whittongton emphasized in his four generic approaches to strategy. WHITTINGTONS GENERIC APPROACH TO LONDON Classical Approach: portrays strategy as a rational process based on analysis and quantification (strategy as science) Evolutionary approaches: uses analogy of biological evolution to describe strategy development through prediction. (Strategy as a science) Processual Approach: concentrates on nature of organisational and market processes (Strategy as art) Systemic Approach: sees strategy as a link to dominant features of the local systems, involving deliberate process, planning and predictability. (Strategy as science) An effective business strategy may include both strategic thinking and the essential elements of a strategic planning process, thus, strategic planning can drive out strategic thinking. Harrison (2003) mentioned that, Henry Mintzberg, a famous strategist defined strategic planning as an analytical process aimed at carrying out strategies that have already been identified and strategic thinking involves intuition and creativity, i.e. it is so rigid that it tend to drive-out the creative-thinking processes which accentuates strategy as an art, its way of synthesizing stimuli from the internal and external environments in creating and integrated perspective of an organisation, this displays the scientific base of strategy. Strategic thinking is seen as crafting strategic architecture thus characterized by essential elements highlighted in the below by Harrison (2003), Intent Focused: Built on managerial vision of where the firm is going and what it is trying to become. This is called strategic intent Comprehensive: A system perspective which envisions the firm as a part of a larger system of value creation. It, understands the linkages between the firm and the other parts of the system. Opportunistic: Seizes unanticipated opportunities presented to the firm Long-Term Oriented: Goes beyond the here and now. Looks several years into the future at what the firm will become, based on its strategic intent. Built on Past and Present: It doesnt ignore the past or present but instead, learns from the past and further builds on a foundation of realities of the present. Hypothesis Driven: A sequential process in which creative ideas are then critically evaluated. Is willing to take a risk STRATEGIC LUCK While some firms hope to yield above expected normal returns from implementing business strategies, they must however be consistently conversant with the future value of those strategies than other firms playing in the same market. Other firms gain advantage in strategy implementation which is either a manifestation of these special insights into the future value of strategies, or a manifestation of a firms good fortune and luck, as sometimes, the price of the strategic resource acquired may be based on expectations on the return potential of that strategy However, unexpected greater organisational profits can simply be unexpected, a surprise, and a manifestation of a firms good luck and possibly not its ability to accurately anticipate the future value of a strategy. Even well-informed firms can be lucky in this manner. Some organizations actual returns on strategies could be greater than the expected returns; this resulting difference is often regarded to be manifestation of a firms unexpected good fortune. Although most of the success of the company has been deliberate and designed, luck has also been part of it. Luck can also play a role in the formation of business strategy as was the case of the battle of the ball-point pen, when Chicago businessman Milton Reynolds, stumbled upon a new product on a business trip to Argentina, he then bought a few samples knowing that another company Eversharp had bought the patents for a million dollars and widely publicised it, devised a strategy to be first to market in order to take opportunity of the publicity already gained in the US. Reynolds then sold the Pens for hefty prices to anxiously waiting customers thereby making millions of profit. Strategic luck can be demonstrated in the success of the POST-IT Notes originally developed the firm 3M. The idea of Post -it notes came from Dr Spencer in 1968 but didnt emerge until 6 years later when it appears to be a solution for a problem of Art Fry (a colleague of Dr Spencer at 3M) in finding songs quickly in his Hymnal book. Even though Dr Spencer was talking to colleagues and anyone ready to listen about his discovery, no one really knew how to use it until Art Fry came up with the idea of using the post it note to retrieve quickly what he needed from his hymnal book. As a result post it notes became really popular and was used in almost every office. Had it not been the problem Art Fry that require a solution post it notes may not have known the success they had and still have. (Big success) The more accurate an organisations expectations about a potential strategys return are, the less luck plays in generating above normal returns but when the organisation has less than perfect expectations, luck can play a role in determining an organisations returns to implementing its strategies. Consequently, strategies yielding above normal returns may be as a result of a firms ability to uniquely implement a strategy which either reflects the competence of the firm to make accurate expectations, underestimating the true value of the strategy or it had no special expectations but the strategy still yielded above normal returns, these are real reflections of a firms good fortune and luck. Exxon recorded its fourth-straight year profits, enduring wild swings in oil prices and a worldwide drop in demand in 2008. Falling oil prices in the latter half of 2008 hurt its oil production arm (CNN Money.com, 2009). Thus, Barney (1985) explained, because luck is, by definition, out of a firms control, an important question for managers becomes, How can firms become consistently better informed about the value of strategies they are implementing than any other firms? Firms that are successful at doing this can, over time, expect to obtain higher returns from implementing strategies than less well-informed firms, although, as always, firms can be lucky. Another perspective of luck is that it only affects performance of strategy in a few instances but which when averaged out over a lengthy period of time appears to be insignificant. These two views are consistent with scientific inquirys assumption of causality. This perspective is most evident in sports, whereby a team like Manchester united may perform poorly in a few games due to some bad luck but will generally do better than the other teams over the course of the season due to their superior football strategy. STRATEGY AS DESIGN Johnson, Scholes, Whittington (2005) introduced the idea of strategic lenses[1] which design lens is part of, they explained the design lens as a strategy idea formulated through objective and careful analysis and planning which is implemented down throughout the organisation by the top management. Johnson et al stated, Strategy as design views strategy development as the deliberate positioning of the organisation through a rational, analytic, structured and direct process. Johnson et al (2008), argues that strategic design basically builds on two main principles; Managers are, or should be, rational decision makers. Managers should be taking decisions about how to optimise economic performance of their organisations. Although most strategies are by design or deliberate, some of them are however emergent. Porter (1990) was one of the proponents of deliberate strategy which argue for the creation of detailed plans on which a business can exert its full influence because market conditions will be relatively stable for the strategic planning period. Mintzberg, a Proponent of the emergent school of thought argued for the creation of objectives or goals for the future of the company but leaving the implementation to the flexibility of market forces. In order words Mintzberg advocates leaving the strategy open to changes in market conditions. These schools of thought make it inappropriate for me to agree with the statement that strategy is a mixture of design as this is not always the case. The success of Amazon can be attributed to the design of its strategy. Following the effervescence of online shopping, Amazon has successfully designed its strategy to meet customers requirements and needs in a way. It has allowed customers to shop from their homes, offices or any other locations without having to physically go in the shop. Amazon also appears to offer a wide range of products and services, and gives the chance to post any comments, rate the products their bought and offer review for products as well which helps buyers in their choice. Amazon has grown from strength to strength over the years as a result of this well design strategy. (Bokardo) Rational choice is being based on the consideration of the decision making consequences and thus be the anticipations of the future effects of possible actions. Invariably by implication, considerations would be given to the diverse benefits and limitations of different strategic options on the basis of evidence that informs on the likely outcomes of decisions made. As Johnson et al (2008) stated, the assumptions typically underpinning a design view of strategy are in two forms which are as follows: In terms of how strategic decisions are made: Systematic Analysis Strategic positioning, an analysis that provides basis for the comparing organisational strengths and resources with changes in its environment in order to be able to take full advantage of opportunities and circumvent threats. Analytic thinking precedes and governs action Objectives are clear and explicit and basis upon which options are evaluated. Making assumptions about the form and nature of organisations Organizations are hierarchies. Organisations are rational systems Organizations are mechanisms by which strategy can be put into effect. STRATEGIC OPPORTUNISM Just as in science field, strategic planning demonstrates the importance of the use of rigorous flexible methods, results and theories in order to take advantage of strategic opportunities with an impact by improving the direction of the knowledge thats been produced. The above expresses the term strategic opportunism an ability to remain focused on long-term objectives while staying flexible enough to solve day-to-day problems and recognize new opportunities. A managers most important role is to plan a long-term, strategic course for the company, keeping the company geared towards that direction. Given that goals are often static contrary to the business environment, success in this role could however elude managers as each day brings an incessant stream of surprises, new information and opportunities. It can be said that the difference between successful and failing companies is in their ability to sense and respond to opportunism in their business environments. Mintzberg Environmental school of thought sees strategy formation as a reactive process, in effect a response to the external environment. The importance of opportunism to the overall strategy of a company cannot be over emphasized be it technological or financial opportunism. Bernand stated, the challenge for managers, then, is to maintain both flexibility and direction. While no magic formula exists for balancing todays plan against a five-year plan, strategic opportunism can be an effective way to respond to immediate concerns while setting and pursuing long-term goals. This can be illustrated in the case of the Snapple Beverage Corporation, a drink company that was founded in 1972. Having known a good success in the 1990s in the cold channel dominated by small independent drinks distributors, Snapple was bought in 1992 for $143 million by a private firm (Thomas H. Lee) that sold it a year a later after taking in public for the $1.7 billion to a successful firm, Quaker Oats. However under the ownership of Quaker, Snapple was deficient, thus it was later sold in 1997 for the modest sum of $300 million to the Triarc Company. Triarc took this opportunity (of getting a company for a small price) and put back Snapple on track, using the niche market they were previously in, instead of following the mistakes of other firms that wanted Snapple to compete with big brand names. Triarc used the failure Quaker oats as an opportunity and made it as they sold Snapple in 2000 for the staggering sum of $1.4 billion to Cadbury Schweppes. Strategic opportunism focuses mainly on identifying and exploiting the immediate market opportunities at hand with a view to leverage the companys existing strategic assets and competencies and avoids commitment.Harrison (2003) argued that, although strategic thinking is based on strategic intent, it does exhibit a certain level of intelligent opportunism, which he defined as the ability of managers to take advantage of unanticipated opportunities to further intended strategy or redirect a strategy. Therefore, it can be concluded that Strategic Opportunism is characterized by the following according to Aaker (2004): Driven by a focus on the present. Premise that environment is so dynamic and uncertain that it is not feasible to aim at a future target. Strategic flexibility and willingness to respond to opportunities is necessary. Change is the norm. Minimizes risk of missing emerging opportunities. Reduces risk of strategic stubbornness. Requires decentralized structure. Needs entrepreneurial personnel. STRATEGIC JUDGMENT Judgement is usually what the decision makers add to uncertainties or ambiguities in any business strategy. Arguably, its believed that managers gain judgment through past experience and its the experience of specific situations and activities that gives specific types of judgment. Pettigrew (1973) argue that experience is the most important source of what managers call their personal development. Mumford (1980) and Stuart (1986) stated that, the process of acquiring the experience which shapes managerial judgment can also be facilitated by working with those who have already demonstrated ownership of the desired qualities of judgment. Conclusively, since strategic judgment has been attributed to experience acquired, thus, can be related to Strategy as experience which is one of the strategy lenses. According Johnson et al (2005), The Strategy experience lens views strategy development as the outcome of individual and collective experience of individuals and their taken-for-granted assumptions most often represented by cultural influences. Thus, an apparently coherent strategy of an organisation may develop on the basis of a series of strategic moves of which make sense in terms of previous moves. Its being discussed that strategic judgment most often influenced by experience, which can be further broken down into various forms. Managerial judgment in strategy planning or formulation could be as a result of certain circumstances, development and experience. Furthermore, Johnson et al (2005) discussed the elements that act as influence on judgment: Individual Experience and Bias Individual experience could be in terms of the mental (cognitive) models people build over time to help make sense of their situation. It exhibits certain characteristics; Cognitive bias is inevitable The future is dependent and related to in terms of the past experience Bargaining and negotiation between high-ranking individuals in terms of how issues are being understood Collective experience and organisational culture Johnson et al (2005) defined Organisational culture as, the basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisations view of itself and its environment. Its also depicted in these characteristics; Managers understanding of the strategic position of their organisation Likelihood of strategic drift[2] Innovation requiring the questioning and challenge of basic assumptions The taken-for-grantedness of a firm may include its strengths which may provide bases for competitive advantage. CONCLUSION In summary, Strategy as design describes the strategic management process which is really the steps and sub-processes of an organisations strategy needed to maintain or improve the organisations performance. Its also been argued that business strategy requires judgment. Though, judgment is most often a personal evaluation and analysis which each individual is committed to, firms and managers captured by their past have higher resistance to change and low in innovation. Conclusively, some innovative business strategies are determined by culture of managers and organisations with their personal judgment, expectations and adequate design methodologies planning, others are simply a variation of luck owning to the fact that some firms just happened to be in the right place at the right time, by taking full advantage of some opportunities that may arise in the global market place, thus, realising it and then developing it into a successful strategy. 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