Effects of the Soviet on the Cuban Missile Crisis

Effects of the Soviet on the Cuban Missile Crisis The Cuban Missile Crisis:Â  Was it the Fault of the Soviets? Introduction The required brevity of this essay precludes the possibility of giving any kind of narrative of the events of the Cuban Missile Crisis; however we will begin with a brief analysis of the origins of the crisis before proceeding to analyse who was to blame and eventually concluding that there were faults on both sides, although more on Kennedy’s than Khrushchev’s. President Kennedy had come to office in 1960 under the generally held, but entirely inaccurate belief that America had far fewer missiles than the Soviets.[1] Almost immediately upon election he committed the US to a massive increase in the US’ nuclear missile arsenal. Even when it was admitted that the US in fact had far more missiles than the Soviet Union, the building program did not slow down (Kahan Long, 1972, 565). Giglio has argued that the crisis arose out of a personal vendetta of the Kennedy’s against Castro himself (Giglio, 1991, 190). It is long established that the CIA were engaged in attempts to assassinate Castro.[2] Robert Kennedy even held responsible for these operations for a time (Chang Kornbluh, 1992, 20-23). The American trade embargo on Cuba and the growing belief that an invasion was imminent led the Soviet Union to threaten war if any such event should occur (Giglio, 1991, 190). We can say, with hindsight, that direct invasion was unlikely given the disastrous Bay of Pigs incident, however this was certainly not clear to the Soviets at the time. Bohlen and Thompson have noted that the Russians had never before placed nuclear weapons outside of their territory and that placing them in Cuba could have been seen by the Americans as a direct threat to their national security. The Russians now had a first strike capability on America’s very doorstep with the ability to strike anywhere at will. This was a threat that Kennedy simply could not ignore (Beschloss, 1991 424). From the Soviets perspective, they may have seen the positioning of missiles in Cuba as a way of balancing the strategic superiority the US had over them in such weapons. Who was to blame? John and Robert Kennedy, Nikita Khrushchev, Adlai Stevenson, Kenneth Keating and Dean Acheson all played significant roles in creating or exacerbating the crisis. It is beyond doubt that Khrushchev had made the critical decision to place missiles in Cuba; but Kennedy’s campaign to overthrow Castro had helped convince the Russian Premier that they were needed to act as a deterrent to American invasion. Keating and other Republicans had forced Kennedy to promise the American electorate that he would resist any attempts to put missiles on Cube, compelling Kennedy to action in October 62. Even Stevenson, whose ideas and policies throughout the crisis were generally sound, had contributed by laying the foundation in 61 for the Cubans to be ejected from the OAS (White, 1996, 232). External and Internal factors were no doubt in operation during the build up to the crisis. External factors were certainly of vital importance. Khrushchev almost certainly believed that placing missiles in Cuba would close the strategic gap that he knew to exist; it would also help appease the Chinese and provide a bargaining chip in negotiations with the west (White, 1996, 233). Kennedy’s policy in Cuba was not new. It was underpinned by the standard assumptions of American Cold War policy: monolithism, the domino effect and the lessons of the 1930’s Garthoff, 1989 43ff). Kennedy felt that Castro was Khrushchev’s puppet, and far to close for comfort. He also believed that this extension of Soviet influence was unacceptable and could lead, in a domino like fashion, to a whole series of communist revolutions in Latin America. The evident failure of appeasement towards Hitler in the 1930’s demonstrated that a touch stance was required. The internal factors that contributed to the crisis have generally been considered of lesser importance by historians; in particular, on the American side, Kennedy’s relationship with the liberals in his government. If JFK had been more receptive, he would probably have rejected the Bay of Pigs proposals. He also likely would not have organised such a concerted campaign against Castro in 1961 and 62. A more liberal Cuban policy would not have increased Khrushchev’s fears over the likelihood of invasion, making deployment of missiles far less likely. Accepting Stevenson’s proposal to offer the Soviets a negotiated settlement at the same time as the blockade was announced could have brought about a quicker and safer resolution to the crisis (White, 1996, 234). Kennedy’s relationship with Republicans was also significant. In order to prevent accusations of weakness, he had told the American public that the Soviet build up in Cuba did not represent a significant threat because they had not included missiles. In 1962 when that situation changed, Kennedy had little choice but to respond swiftly. It also ensured that Kennedy’s response could not be one of toleration (White, 1996, 235). During Kennedy’s campaign for the Presidency in 1960 he had criticised Eisenhower for his failure to prevent the rise of Castro and had pledged to remove him from power if elected (Dinerstein, 1976, 21ff). Khrushchev’s belief that, after the Bay of Pigs, Kennedy would again try to fulfil his election promise and attempt to remove Castro, this time directly using American military power, was one of the key factors behind Khrushchev’s decision to install warheads on Cuba. It can be argued, therefore, that there was a clear causal link between the 1960 re-election campaign and the missile crisis, with the former helping to bring about the Bay of Pigs, which in turn helped convince Khrushchev of the need to protect Cuba and thus install missiles (White, 1996, 235). Kennedy also believed in the connection between public opinion and policy, this also helped define the approach towards Castro’s Cuba. One of the lessons to be learned from Britain’s appeasement of Hitler in the late 1930’s was that the public can, at times, exert an unhealthy influence over the pursuit of the national interest. In the case of 1930’s Britain, various pressure groups acted to prevent an increase in military spending. Kennedy, with these lessons in mind, was drawn towards secret operations that would not trigger a public debate. Domestic concerns were also of paramount importance to Khrushchev and certainly contributed to his decision to deploy missiles on Cuba. The Soviet Premiere evidently felt that Russian nuclear weapons in the Caribbean would allow his to justifiably make the argument to the rest of the Soviet ruling class that they significantly improved the Soviet strategic position and that it would therefore be safe to resume the program of cutting troop numbers in order that funds could be diverted away from military spending and towards the civilian economy, which even then was not in a good condition. Installing missiles in Cuba would allow Khrushchev to adopt a strategy of brinkmanship with Kennedy. Kennedy’s public assertion of nuclear superiority (however true) had seriously undermined Khrushchev’s position in the autumn of 1961. Brinkmanship was essentially a way of achieving foreign policy goals without the application of any actual resources: Khrushchev could, therefore, essen tially concentrate on domestic rather than defence needs with his limited resources. Kennedy and Khrushchev were jointly responsible for the crisis. Khrushchev’s decision to install missiles on Cuba was an un-necessary risk. He could have secured the Cuban dictators position, and appeased the Chinese at the same time, be moving troops and conventional arms to the island; although this would have detracted from his domestic agenda. Faced with the prospect of a military clash with the Soviet Union it is highly likely that Kennedy would have abandoned any plans to again attach Cuba (White, 1996, 236). Kennedy was equally culpable for the crisis. Before Khrushchev ever ordered missiles to Cuba, Kennedy had ordered the CIA sponsored invasion, ordered various assassination attempts on Castro, installed a tight embargo on trade to and from the island, approved working towards Cuba’s removal from the OAS and approved large scale military operations in the region (Nash, 1997, 117ff). That Kennedy appeared not to realise that these actions would annoy the Soviets seems, to say the least, naive. He also failed to realise, or perhaps did not care, that his massive increases in defence spending coupled with public proclamations of superiority would trouble the Russians. Although Kennedy and Khrushchev shared, to varying degrees, the responsibility for causing the crisis, they also much share the credit for defusing it. They managed to avoid clashes on the high seas, and in a letter sent to Kennedy on October 26th, Khrushchev showed that he was willing to be the first to make concessions in order to secure a peaceful resolution. Kennedy on the other hand was able to astutely and effectively respond to the two conflicting letters send by Khrushchev on the 26th and 27th of October (White, 1996, 238). All too often Kennedy’s Cuban policies have been prone to oversimplification, much like assessments of his Presidency in general. His record on Cuba was neither excellent in a way that his supporters claim, nor poor as per his detractors Kennedy’s pre crisis approach to Castro was misguided; he also tinkered with but never fully engaged with as examination of America’s cold war position (White, 1996, 238). Conclusion Khrushchev’s decision in 1962 to install nuclear weapons on Cuba was almost certainly not required to fulfil his various foreign, domestic and defence policy objectives. His belief that American military intelligence would fail to detect the missiles on Cuba before they were fully operational was foolish and mistaken. Most importantly of all, Khrushchev should have realised that the new American administration would never tolerate Soviet missiles on Cuba, able to deliver a first strike capability to the Soviet Union. The decision made confrontation inevitable. Kennedy on the other hand was far more culpable. His approach to Castro before the crisis was misguided to say the least. The assassination attempts code named project Mongoose, his aborted invasion, trade embargo etc. as noted above all smack of bullying and of a deep seated hatred. He repeatedly implemented policies towards Cuba that were unnecessarily hostile. His belief that a communist Cuba would lead to the spread of communism throughout the Latin American world smacks of paranoia. He failed to take advantage of opportunities before the crisis arose to improve relations with Havana and Moscow and he failed to listen to his liberal advisors like Stevenson. As with most international problems throughout history, the fault does not lay with just one side. The leaders of both nations have to take some of the blame but it seems evident that Khrushchev was largely acting in response to American aggression and was the first to offer a negotiated peace that would allow the situation to be defused. Kennedy should also be praised in the final analysis for allowing the Soviets to save face by negotiating away the American Jupiter missiles in Turkey (Nash, 1997, 150-176). The crisis need never have arisen in the first place, but it appears largely to be America acting and the Soviets reacting. Bibliography M. P. Beschloss, Kennedy V. Khrushchev: The Crisis Years (Boston 1991) L. Chang P. Kornbluh, The Cuban Missile Crisis: A National Security Archive Documents Reader (New York 1992) H. S. Dinerstein, The Making of a Missile Crisis: October 1962 (London 1976) R. L. Garthoff, Reflections on the Cuban Missile Crisis (Washington D. C. 1989) J. N. Giglio, The Presidency of John F. Kennedy (Kansas 1991). R. Helsman, The Cuban Missile Crisis: Struggle Over Policy (London 1996) J. H. Kahan A. K. Long, The Cuban Missile Crisis: A Study of its Strategic Context, Political Science Quarterly, 87 (1972) P. Nash, The Other Missiles of October (London 1997) S. M. Stern, Averting ‘The Final Failure’: John F. Kennedy and the Secret Cuban Missile Crisis Meetings (Stanford, California, 2003) M. J. White, The Cuban Missile Crisis (London 1996) 1 Footnotes [1] The US in fact had 17 times more warheads than the Soviet Union, (Giglio, 1991, 192.) [2] The so called operation Mongoose.

When Was Barbie Given Bendable Legs

Hatfield 1 Kristin Hatfield Professor Clark English 101 3037 Page 175 Assignment 4 Paper 5 October 31, 2012 Barbie – An American Icon Icons like Barbie recognized for their popularity and effects on society. Barbie is a subject of obsession all over the world. Collectors, consumers and even some designers become enthralled in the Barbie world. Designers create special designs to fit a specific trend of the high fashion runways. Collectors all over the world collect and spend amazing amounts of money to have the original Barbie in their collection.The consumers have made Barbie a true icon in American culture. The Barbie doll was invented in 1959 by Ruth Handler (co-founder of Mattel), whose own daughter was called Barbara. The Barbie doll was introduced to the world at the American Toy Fair in New York City. Barbie's job was teenage fashion doll. In 1965, Barbie first had bendable legs, and eyes that open and shut. In 1967, a Twist ‘N Turn Barbie was released that had a moveable body that twisted at the waist. The best-selling Barbie doll ever was 1992 Totally Hair Barbie, with hair from the top of her head to her toes.The first Barbie was sold for $3. Additional clothing based on the latest runway trends from Paris were sold, costing from $1 to $5. In the first year (1959), 300,000 Barbie dolls were sold. Today, a mint condition â€Å"#1† (1959 Barbie doll) can fetch as much as $27,450. To date, over 70 fashion designers have made clothes for Mattel, using over 105 million yards of fabric. Barbie has had a huge impact on the fashion industry for over fifty years. . (Mary Bellis, About. com Guide) Hatfield 2 This is what the proportions of a life-size Barbie doll would look likeImage from (thefrisky. com) There has been some controversy over Barbie Doll's figure when it was realized that if Barbie was a real person her measurements would be an impossible 36-18-38. Barbie's â€Å"real† measurements are 5 inches (bust), 3 ? inches (wais t), 5 3/16 inches (hips). Her weight is 7 ? ounces, and her height is 11. 5 inches tall. These measurements seem unattainable to me as a woman living in a world of super-sized portions of food at every corner. Nevertheless, Mattel has also responded to concerns about Barbie’s body.In 1997 Barbie’s body mold was redesigned and given a wider waist, which would make her â€Å"better suited to contemporary fashion designs. †(The Examiner. com) I can clearly remember my first Barbie. I was five years old. It was Christmas day and I was very excited to own my very own Barbie. Along with the doll I also received a dream house, a pink corvette, swimming pool, and even a Ken doll to make the â€Å"Barbie world† complete. I was instantly obsessed with the idea and the make believe life I imagined for my dolls. Not once did I ever think of these dolls as role models or as having a certain body image that I must follow n order to be accepted in society.Unfortunately, a lot of mothers and women believe that the doll has made young women obsessive about their size and looks. Hatfield 3 Overall, this American Icon has influenced our culture in a way Mattel probably never could have ever imagined. Barbie is a doll that creates and follows fashion trends just as the world does. This iconic doll has changed her clothing, hairstyles, automobiles, friends, houses and pets. Barbie is one doll that never goes out of style and has made fashion dolls a great pastime for collectors and children young and old.

Speech of oath Ceremony

Especially to those dew drops who have made their presence in the lawns of this college for the first time, I called the Dew drops yes they are because we believe that they are as pure as the purity in the drops of dew we observe on the grass early in the morning. And now is the time to impel along with that purity in them the moral values so that they will shine in heights of the sky this also is a fact that they also have entered this premises with an aim to groom their life. Which implies that they have entered the college life where from they will come out to be the future of tomorrow’s society.The author of Re imagine Mr. Tom Peters has assessed the colleges as, â€Å"I imagine a college system that recognizes learning is natural, that a love of learning is normal, and that real learning is passionate learning. A college curriculum that values questions above answer†¦.. creativity above fact regurgitation†¦. individuality above conformity.. and excellence above standardized performance†¦Ã¢â‚¬ ¦ And we must reject all notice of reform` that serve up more of the same: more testing, more `standards`, more uniformity, more conformity, more bureaucracy.In context to these words of Tom Peter I assure all the parents and the students sitting in front that we all under this roof are determined to inculcate good moral values among the children who enter the premises of this college because they are supposed to be the future of tomorrow, As we are all carriers of our own stories. We have never trusted our own voices. Reforms came, but we don’t make them. They were presented by people removed from colleges, by ‘experts’ such changes bi passes college.College by college changes, however slow, could make a powerful difference. Which implies that good colleges are still possible. With these lines of ‘Deborah Meier’ I conclude my words and whole heartedly welcome the new comers here in our family Sai Pariwar. Now to start off with the official part of the welcome ceremony I request the chairman of shri Sai Baba Aadarsh mahavidyalaya, along with the secretary SSBAM, the principal of the college and the Department heads from all the faculties to come ahead for the lightening of the lamp.

Themes Of Mary Shelley s Frankenstein - 1119 Words

7. Themes Revenge In Frankenstein, revenge has an emotional resonance way stronger than Victor s half-hearted protests that he really does love Elizabeth. The monster may think he has no connection to the world, but revenge gives him a constant link to Victor. It may be distorted, but it s still a way of forming human bonds. Knowledge The pursuit of knowledge is at the heart of Frankenstein, as Victor attempts to surge beyond accepted human limits and access the secret of life. Likewise, Robert Walton attempts to surpass previous human explorations by endeavoring to reach the North Pole. This ruthless pursuit of knowledge proves dangerous, as Victor’s act of creation eventually results in the destruction of everyone dear to him, and†¦show more content†¦The novel ends with Victor and the monster hunting each other on the Arctic ice, which symbolizes the primal struggle between them as well as the loneliness each feels in their existence. 9. Imagery â€Å"It was on a dreary night of November that I beheld the accomplishment of my toils. With an anxiety that almost amounted to agony, collected the instruments of life around me, that I might infuse a spark of being into the lifeless thing that lay at my feet. It was already one in the morning; the rain pattered dismally against the panes, and my candle was nearly burnt out, when, by the glimmer of the half-extinguished light, I saw the dull yellow eye of the creature open; it breathed hard, and a convulsive motion agitated its limbs [...] that seemed almost of the same colour as the dun white sockets in which they were set, his shrivelled complexion and straight black lips† (Shelley 48). In Frankenstein, Shelley sets up the setting in November which tends to be a month of chilly weather. The creature created by Victor Frankenstein is explained in very specific manner which lets the reader picture the creature’s features. 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Project management within organizations is important - Free Essay Example

Sample details Pages: 20 Words: 6109 Downloads: 1 Date added: 2017/06/26 Category Statistics Essay Did you like this example? ABSTRACT Which way to go? This is a question that organizations will ask themselves in a certain time, because organizations are faced with challenges of strategic direction. Some organizations are instigated by challenging opportunities, other organizations want to overcome significant threats. The business strategy can move an organization from where it is now, to where it needs to be in the future. Johnson et al (2009) states that the strategy of an organization is often likely to be complex, uncertain and mostly it affects operational decisions and requires an integrated approach. But the most typically and crucial components of strategy are change and innovation. Project management is essential for managing and reducing the inherent risk associated with change and innovation. Thats why many projects are the result of strategic decisions of organizations, because projects manage changes on an effectively and efficiently way. Changing organizations need projects for making change and for obtaining its business strategy and -objectives. Don’t waste time! Our writers will create an original "Project management within organizations is important" essay for you Create order Nowadays sustainability is a very hot (strategic) item for organizations. Organizations are integrating ideas of sustainability in their marketing, corporate communications, business strategy and in their actions. Centraal Boekhuis, a (leading) logistics service provider in stocking, storage, distribution and transportation of books, has also formulated a covering policy on sustainability for the strategy period 2009-2011 (Board of directors Centraal Boekhuis (2009)). Sustainability for Centraal Boekhuis means commitment to corporate environmental performances as well as sustainable performances on social and economic aspects. Several projects on behalf of sustainability will be conducted as well as projects will be conducted on behalf of other strategic targets. But is it possible to make project management sustainable, in order to make other projects contribute to the policy on sustainability too? In this research the relation between project management and the pursuing of the realization of business strategies will be looked at. Then the main research question will be answered: how will the business strategy influence the selection and execution of project management within organizations, and how will this in consequence lead to sustainable project management? The hypothesis is that when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will contribute to the realization of the business strategies as well as it subsequently will contributes to sustainability. The actual research will be executed through a web survey among several organizations as well as a case study of Centraal Boekhuis, which contains in-depth interviews with about 10 representatives project employees from Centraal Boekhuis. The research will also contain the study of qualitative data, for exampl e the study of documentation and reports that are in stock within the company about strategy, project management and sustainability. 1. INTRODUCTION BACKGROUND 1.1 Introduction To understand project management within organizations it is important to understand projects. The Prince2 Foundation (2005) defines a project as a temporary organisation that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined recourses. In practice projects bring recourses, skills, technology and ideas together to achieve business objectives and deliver business benefits. But why is there a need for projects within organizations? Organizations are continuously striving after agility and success by for example introducing new products and services or by improving business processes or activities. Many projects are the result of organizations that wants to manage such changes on an effectively and efficiently way. According to Bryan Atkin and Adrian Brooks (2009), Change Management is the key towards innovation of organizations. In order to make progress and achieve greater efficiency and better value for money and to be more effective or competitive, organizations have to do things differently and have to make changes. Maylor (2005) stresses that Project management is essential for managing and reducing the inherent risks associated with change and innovation. Changing organizations need projects for making change. Recently Johnson et al. (2009) gives an interesting definition on business strategy. The definition describes that strategy contains the direction and scope of an organization over the long term, for achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations. Aforementioned definition displays that the fundamental principle of making changes of organizations can be the result of aiming towards targets that contributes to the fulfilment of the business strategy. In practice this means that organisational changes and the application of project management for realising those changes can thus be the result of the long term direction and scope of an organization. Simply said; project management can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -objectives. As mentioned above the management of projects within organization is among other things related to its business strategy, but how will the business strategy influences the selection and the execution of project management within organizations and how can project management thus contributes to the realization of the business strategy? For example, The board of directors of Centraal Boekhuis (2009) has formulated a covering policy on sustainability for the strategy period 2009-2011. Several projects on behalf of sustainability will be conducted as well as projects will be conducted on behalf of other strategic targets. But is it possible to realize more strategic focus, by linking all projects to the business strategy of an organization? This leads to the main research question of the thesis: how will the business strategy influence the selection and execution of project management within organizations, and how will this in consequence lead to sustainable project management? Another interesting question will be: if project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, will projects contribute to the realization of the business strategies as well as it subsequently will contributes to sustainability? 1.2 The organization; Centraal Boekhuis Centraal Boekhuis is a (leading) logistics service provider in stocking, storage, distribution and transportation of books. More than 500 publishers and over 1500 booksellers use the service facilities for distribution, transportation, information and administration. For publishers is Centraal Boekhuis the entry into the Dutch and Flemish (book) markets. For booksellers in the Netherlands and Flanders, Centraal Boekhuis is the provider of the assortment of Dutch-language books, general as well as educational or scientific books, and a selected range of foreign-language books (staff directory guide Centraal Boekhuis, 2007). Besides taking care of stocking, storage, distribution and transportation of books, Centraal Boekhuis also offers administrative or financial services. For publishers the company organizes complete stock and sales recording, invoicing and debt collection. Booksellers as well benefit from a broad range of information technology services. The majority of Centraal Boekhuis services are integrated in a single automated system (CB Online), so customers have access to the operational and management information they need, focused on their companys business processes. Upon request, Centraal Boekhuis will also arrange the storage, distribution and transport of office supplies, stationary and greeting cards. All logistic activities and processes are linked with the transport centres delivery network. The centres range of services includes processing special offers and returned goods, (temporary) storage, order picking and carrying out special mailing campaigns with value-added logistics. The Transport Centre of Centraal Boekhuis organizes transport from and to countries outside the Benelux. In England is a consolidation point bounded, where shipments from 1600 English publishers intended for Dutch bookshops are collected and forwarded to the Netherlands. This enables Centraal Boekhuis to offer customers attractive services. Shipments from Germany and America are transported along similar lines. History For over 135 years Centraal Boekhuis have been the logistic partner in the Dutch book trade. In 1871 the Vereeniging ter Bevordering van de Belangen des Boekhandels (VBBB) in Amsterdam lay the foundations for Het bestelhuis van de Nederlandsche Boekhandel, presently called Centraal Boekhuis. Publishers send their boxes with books to that warehouse of books, where the boxes were distributed across the Netherlands. Many years later, in 1926, the VBBB decided to found Centraal Boekhuis in Amsterdam. Well-established publishers were obliged to store their books in the central depot of Centraal Boekhuis in Amsterdam. From now on the book stores and publishers could order their books with Centraal Boekhuis from one central point in the Netherlands. In 1973, because lack of space, Centraal Boekhuis grounded their company in Culemborg, where the company nowadays is still grounded. In that same year is Het Bestelhuis and Centraal Boekhuis merged into one company: Centraal Boekhuis B.V (Intranet Centraal Boekhuis, 2008). Organization The daily management of Centraal Boekhuis is directed by the Senior Management Team (SMT). The lead direction of the 5 Senior Managers is directed by a Chief Executive Officer, namely Hans Willem Cortenraad. They have weekly meetings to discuss the company policy and how this policy is best directed to the line managers. Centraal Boekhuis in figures (2009) Full time employees: 579 Publishers: 500 Booksellers: 1500 Available Dutch titles: 80,000 Number of copies delivered per year: 60,000,000 Number of delivery addresses per day: 2500 Number of packages transported per year: 4,500,000 Number of pallets transported per year: 300,000 2. PROBLEM STATEMENT RESEARCH QUESTION According to Project Management Institute and Morris (2006) oorganizations often want efficiency, good financial results and success and they want it fast. It is for that matter that organizations generally focus on short-term results, such as immediate realizable financial goals. However, Centraal Boekhuis for example expects also from its employees to achieve results that corresponds to the overall long term objectives of the business strategy. This contradiction pointed me in the direction to ask myself if it is possible to operate more efficiently if the portfolio of projects is continuously linked to the business strategy of Centraal Boekhuis. My hypothesis subsequently is that the overall business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the business strategy. Nevertheless, the solution isnt that easy. For instance, organizations are nowadays more often integrating ideas of sustainability in business strategies. It is for that matter unavoidable that there will be projects related to sustainable strategy, namely environmental or social projects. However, will projects on behalf of other strategic objectives also be sustainable? Thats why I assume that when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of strategies as well as it subsequently will contributes to sustainability. [2] The main question and hypothesis will be clarified for a reasonable interpretation of the research construction and approach. In this research the relation between project management and the pursuing of the realization of business strategies will be looked at. Foresaid leads to the following research question: what is the impact of the business strategy on the selection and execution of project management within organizations, and will this possible influence in consequence lead to sustainable project management? The hypothesis is: when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of the business strategies as well as it will positively contributes to sustainability; the result subsequently is that the overall business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the sustainable business strategy. Why is it so important to link the project management of an organization to its business strategies, in order to make projects sustainable? As stated by Johnson et al (2009) it is ultimately the fulfilling of the business strategy to aim on the fulfilling of the expectations of the stakeholders. If an organization have stated sustainability within their business strategies, stakeholders are involved in monitoring if the strategy is achieved the objectives and if there is corrective action needed. This is called strategic control and it will keep an organization in track with its achievements on behalf of its strategy (and also sustainable strategy). According to foresaid it is plausible that it is important to state sustainability in the business strategy, for making sure that projects will meet the objectives and goals of sustainable strategy. 3. GOALS OBJECTIVES I will try to find out if a business strategy, specifically a sustainable business strategy, can positive influence the way on how projects will be selected and executed, as I expect it to be. I will test the hypothesis that the overall business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the sustainable business strategy, to see if it is possible to make project management sustainable. If so, this offers an interesting new insight in sustainable project management, which could be the basis for more research. First it is important to study literature to get familiar with the several subjects of this thesis. The several subjects that will be described are project management, business strategy and of course overall sustainability. Next I will try to describe the multifarious relative contexts between the several subjects described in the literature, in order to make my hypotheses plausible. The most important objective of the literature review is to create an elementary basic assumption for further research. Furthermore the research methodologies that I will use are a case study research and a web survey. For the execution of the case study research are various data (re)sources used, namely in-depth interviews and the study of business documentation and reports. The case study research methodology will be used to get insights in how Centraal Boekhuis arranges its business strategy, especially how it is arranged towards its project management. Then it is important to look at how the sustainable policy of Centraal Boekhuis affects the daily operations as well as the sustainable policy affect its project management. For comparison and further research I will send a web survey to approximately 100 companies with sustainability stated in their business strategy. Hopefully this will give me insights in how other companies arrange their project management related to its business strategy and maybe they have certain methodologies to make project management sustainable, so I have some interesting data to work with. My research will focus on project management, business strategies, sustainability and sustainable project management in an attempt to find relative contexts to integrate business strategy and projects in order to facilitate development of sustainable project management. Overall I hope that the executed research will create a certain frame work for linking project management to the overall business strategy of an organization, in order to make project management sustainable. 4. LITERATURE REVIEW As mentioned earlier my research will focus on project management, business strategies, sustainability and sustainable project management. Therefore the theoretical background of my research will also be focused on foresaid topics. 4.1 Business Strategy The traditional literature about business strategy is often about the general definitions of business strategy, where organizations focus on where they want to be on the long term (mission and vision) and how this is achieved (goals and objectives) (Alblas Wijsman, 2001) in order to gain competitive advantages. The current literature about strategy describes more that strategy is about the importance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations (Johnson et al., 2009). Aforementioned shows that the current literature on business strategies discusses the importance of the characteristic aspects change and configuration (Kloosterboer, 2005). The relative context between business strategy and changes is an important aspect that must be taken into account before I continue my research. According to Bryan Atkin and Adrian Brooks (2009), Change Management is the key towards innovation of organizations. In order to make progress and achieve greater efficiency and better value for money and to be more effective or competitive, organizations have to do things differently and have to make changes. Harvey Maylor (2003) characterizes project management as essential aspect for managing and reducing the inherent risks associated with change and innovation. Therefore changing organizations need projects for making change. 4.2 Project Management The Prince2 Foundation (2005) recognizes that organizations are continuously striving after agility and success by for example introducing new products and services or by improving business processes or activities. Many projects are the result of organizations that wants to manage such changes on an effectively and efficiently way. Furthermore Prince2 (2005) defines a project as a temporary organisation that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined recourses. In practice projects bring recourses, skills, technology and ideas together to achieve business objectives and deliver business benefits. According to the International Project Management Association (2006), professional project management is broken down into the following three competences (see also figure one): Technical competences for project management; behavioral competences of project personnel; and the contextual competences of projects programmes and portfolio. The technical competence covers the techniques of project management, for example the practice of Prince2. The behavioral competence represents the professional behavior of the project personal, like project management skills. The contextual competence is the linkage between the project and organizations involved. The vision on project management by IPMA in the International Competence Baceline presented in October 2006 will be critically looked at for my research. This project management approach will also be studied and discussed during the master program of the Master of Facilities Management and Real Estate. The eye of competence figures the integra tion of the elements of project management as seen trough the eyes of the project manager. So the essence of project management is to support the execution of an organizations strategy to deliver a considered necessary outcome (Clifford and Gray, 2002). The research of recent literature shows us that project management is nowadays recognized as one of the primary business processes (Atkin Brooks, 2009). It is for that matter that organisational changes and the application of project management for realising those changes must be linked to the overall business strategy of an organization, in order to accomplish the business goals and objectives. Simply said; project management can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -objectives. For this thesis I will mainly focus on the SWOT analysis, because this management and strategy tool is used by Centraal Boekhuis for defining its strategy. The SWOT analysis can be used as a strategy formulation tool. It helps organizations to identify its Strengts, Weaknesses, Opportunities and Threats (SWOT). The Strengths and Weaknesses represent the internal factors that create value or can destroy value. Opportunities and Threats are the external factors that can influence the organization value (Ahaus, 2005). 4.3 Business Strategies vs. Project Management According to Sabin Srivannaboon (2006), previous research on project management and its relation with business strategy mostly links the project management with business strategy through critical project selection, viewing it as part of the alignment process (For example Bard, Balachandra Kaufmann (1988); Cooper, Edgett Kleinschmidt (1998); Englund Graham (1999) etc). Also often displayed in previous research is project portfolio management. This is another concept suggested in the literature to ensure the strategic alignment of project management and business strategy and it is defined as a dynamic decision-making process, which an organization can update and revise its list of active projects (see for literature: Turner Simister (2000); Cooper, Edgett Kleinschmidt (1998) etc.). Current literature shows us more about the research that has been done on the alignment of project management with business strategies of organizations, for example research of Sabin Srivannaboon (2006) , Tony Grundy (2001) Peter Morris Ashley Jamison (2004) etc. 4.4 Sustainability sustainable project management On Wednesday the 4th of November, member of the House of Representatives Esmà © Wiegman talks about faith in Sustainability and vice versa, please note: in church! That sustainability has even penetrated the Christian church sais a lot. We are all confronted with it and action is expected of us. Sustainability is a hot item, that is no surprise. Looking at the quotes mentioned below you can conclude that there is no process in an organization that is not interfered with sustainability items. Managers are more and more beginning to consider the environment as an additional parameter on which they base their decisions. (North, 1997) That is what Klaus North wrote is his environmental business management introduction in 1997. And Carin Labuschagne wrote almost a decade later: Various driving forces originating from society, government employees and business partners are forcing companies to both incorporate sustainable development in their business practices as well as to align all internal operations and practices with the principles thereof. (Labuschagne, 2005). Sustainability, what does that really mean? Norwegian prime minister Gro Harlem Brundtland formulated it as followed; The development that meets the needs of the present without compromising the ability of future generations to meet their own needs. As Labuschagne already said, there is no process in an organization that is not interfered with aspects of sustainability. Project management is just one of these processes that cannot be ignored. That is also made clear in the APM sustainable outlooks, where is mentioned that they are considering a database with project and programme managers who have specialist knowledge, experience and expertise in sustainability issues generally or by specific sectors, locations or types of project. They also plead for the triple bottom line approach in every project. The triple bottom line approach includes environmental, social and economical sustainability (APM, sustainable outlooks). As organizations become more and more focused on environmental responsibilities, project managers cannot stay behind. (Zoyd Reed Luce) Where sustainability is grounded in almost every strategy of every large organization, this automatically is reflected in the projects of an organization. Project manager are forced to focus on sustainability these days, it becomes part of the project. 4.5 Theoretical Framework for aligning projects with strategy There are several articles expanding on the idea that there should be a certain focus on the corporate strategy when managing projects, for example the articles of Tony Grundy (2001) or Morris and Jamison (2004). Milosevic and Srivannaboon (2006) support this vision in their article and wrote an article which describes a theoretical framework for aligning project management with strategy. Milosevic and Srivannaboon have developed an empirically based theoretical framework that explains the impact of business strategy on project management and vice versa and discusses how mechanisms can be used to strengthen that alignment. As discussed earlier, strategy is about the importance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations and defending it against competitive forces (Johnson et al., 2009). Milosevic and Srivannaboon have based their theoretical framework on the vision of Porter (1980) about Generic Business Strategies. Michael Porter states that to achieve a sustainable competitive advantage, an organization must chose a certain type of strategy. Porters generic strategies distinguishes three types of strategies, namely cost leadership, differentiation, and cost focus (see figure 3). Competitive advantage can only be achieved by choosing one of these strategies. If an organization chooses to pursue more than one generic strategy, it will perform being badly without competitive advantage and Porter refers to that as being stuck in the middle. Milosevic and Srivannaboon use cost leadership, differentiation, and best cost as the primary focus of their analysis. They also use Shenhars strategic project leadership framework which consist of project elements like project strategy, project organization, project process and tools metrics and culture. Differentiation is about organizations pursuing a differentiation strategy by offering products and services that are unique from competition in order to satisfy the desires of their customers. This differentiation allows the organization to charge a premium price (Porter, 1980). Cost Leadership is about organizations pursuing a cost leadership strategy to gain competitive advantage and increase market share by operate with lower costs than competition, for example tight cost controls e.g. efficient facilities (Porter, 1980). Best cost (also called focus niche) is about organizations creating a sustainable competitive advantage through combining cost leadership and differentiation. This can be realized by offering a unique product or service to a special market segment and seek to offer low cost products within a special market segment (fast time-to-market, superior product quality, etc.). According to Milosevic and Srivannaboon the competitive aspects of the business strategy drive the focus of the project management elements. They see a pattern in project management elements for the differentiation of business strategy. Their research indicates that organizations can align projects with business strategies into three levels, namely the strategic level, the tactical level, and the corrective emergent strategic feedback. The first level of this framework (typified as mediating process at the strategic level) is the first step of the alignment process. At level 1 organization should use their intended strategy and select projects into their portfolio to determine the right projects that would contribute to the organizations strategy. The second level (typified as mediating process at the project level) involves the further planning of project details to ensure that alignment with the project life-cycle phases (Shenhars project classification) is realized. Proper alignment of projects with strategy during the project life cycle can be classified as the planning process and the monitoring process. Managers should develop a project management plan that has a certain focus on the business strategy. The third level (mediating process at the emergent strategic feedback level) is a process which uses stages, or also called stage gates or milestone, for evaluating or reviewing the project status on time, cost, and performance. These project stages are points in the project life cycle where projects transition from one stage to another. These stages provide project teams the opportunity to realign the project to its business strategy. 5. RESEARCH DESIGN 5.1 Research methods Based on the literature of Baarde and Goede (2001), the research on behalf of this thesis is categorized in a preliminary research study, a literature review, a case study research and a web survey. For the execution of the case study research are various data (re)sources used, namely in-depth interviews and the study of business documentation and reports of Centraal Boekhuis. The preliminary research study has given multifarious insights in for example the company of the case study, but also insights about project management and the business strategy of the concerning organization. In the preliminary research study is a critically literature review completed and several managers of the human resource division have been interviewed for creating a basis for this research. The products of the preliminary research study are a defined approach of the case study research, a description of the company and a defined approach of the web-survey. The case study research can be categorized in descriptive- and exploratory research study methods (Sanders et al, 2009). The descriptive study of this case study is defined by the research of qualitative data, for example the study of business documentation and reports that are in stock within the company about project management, its business strategy and sustainability. The exploratory part of the research describes the research methods in depth interviews and a web survey. In order to test how organizations work with project management related to its (sustainable) business strategy, two steps will be carried out. First, on Tuesday March 6, I will send a web survey to approximately 15 companies with sustainability stated in their business strategy. This short questionnaire will offer me data on the way the concerning companies arranges their project management related to the business strategies, to test on how the companies makes their projects sustainable. In order to increase the number of responses and to raise the chances of the answering the questions themselves, I will keep the survey very short, and stress this in the attached e-mail. Second, I will arrange in-depth interviews with about ten representatives of project management employees of the project department of Centraal Boekhuis. In these interviews, I will attempt to learn more about the selection and execution of project management, related to the business strategy and of course elaborate on the questions of the Web Survey.[3] The project department of Centraal Boekhuis contains several layers of management and operations levels. Therefore I will interview numerous project managers as well as project members to make the outcome more reliable and suitable to analyze. The following employees of the project department will be interviewed: Egbert Guis (Sr. manager Project Management) Peter Coenen (Project manager) Jaco Wobma (Project Manager) Karel ter Burg (Facility Manager, participant in many projects) The final names and the exact number of interviews is of course dependant on the willingness of the companies to cooperate. The advantage of using the Web Survey is that I am not completely dependent on the in-depth interviews, as these might be difficult to arrange. Moreover, it provides me with data on the way other companies arrange their project management related to the business strategy, whereas the in-depth interviews will only offer me the views of a couple of representatives. Nevertheless, the in-depth interviews are a very important part of my research. In these interviews, I have the possibility to keep on asking, to get deep into the matter. Only in these interviews, the representatives can really explain how Centraal Boekhuis executes project management related to its business strategy and the relationship of sustainable strategy within project management. [4] 5.2 Analysis plan validation Besides relevant literature, the actual research will be based on a Web Survey and in-depth interviews. I will analyze the answers in the Web Survey on the basis of descriptive statistics. For each variable, I will present a frequency distribution. The results of the web survey will be compared with the current situation of Centraal Boekhuis, so it is possible to create applicable contributions and results for Centraal Boekhuis. Hopefully it is also possible, in accordance with the collected data, to create a certain frame work for linking project management to the overall business strategy, in order to make project management sustainable. The answers of the in-depth interviews will be analyzed as well. In this analysis, I will of course be looking for the answer to my research question: how will the business strategy on sustainability influence the selection and execution of project management within organizations? With face-to-face interviews, it is hard to predict what you will be analyzing exactly. However, by asking to the point questions, the interviews will be focused on the organization and its project management, which will certainly lead to answers which are relevant to my research whatever the exact answers are. 5.3 Constraints limitations The analysis plan for my statement on project management and its relation with the business strategy and sustainable business strategy is not entirely clear yet, because I do not know what kind of data I will have to work with. I will elaborate on my literature study, and I will analyze some interesting statements issued by respected managers, or other interesting statements relevant to the research. If available, I will analyze relevant data presented by organizations on sustainable policy and strategy gathered throughout the in depth interviews and the web survey. In the months June and July in depth interviews and web surveys will take place. I also will use any data related to project management, business strategy and sustainability in stock within Centraal Boekhuis, et cetera. If this data does not become available, I will look for other ways to make my statement plausible. I will analyze the results of research that has been done by others, in which the several subjects of my thesis will be attended to the matter. Moreover, I will also use research of others, such as the one on project management issued by Ashley Jamieson (2005). This paper reports on research that addressed the way how corporate strategy is developed and implemented via the management of portfolios, programs, and projects. It does so by detailing the key findings from four case studies, together with data from a survey of PMI members. The research of Sabin Srivannaboon (2006) on Linking and aligning project management with business strategies, where the research addresses three aspects of strategic management literature; A two way influence between project management and business strategy (the nature of project management/business strategy alignment). A process used for achieving the project management/business strategy alignment, and The degree to which a project is aligned with a business strategy (an alignment score). Ambidexter, a project management bureau in the Netherlands, has done research on strategy realization through using project management. They have constructed a so-called Strategy Realization Model (SRM). The research on behalf of the constructed model can also be interesting to look at. In the Master of Science program of the study Facility Management and Real Estate, the students have to make a paper describing a case study on how a selected organization applies concepts of sustainability in their projects and project management. Several of these case studies can be useful to study on behalf of my research. Which papers I will use is not entirely clear yet, because the papers arent finished when I write this proposal. 6. CONTRIBUTION VALUE It is essential that this research has a certain value for Centraal Boekhuis as well as it must have a certain contribution to the specialists fields of sustainable project management and Facility Management. Nevertheless the relevance of this research is not only interesting for Centraal Boekhuis. This research project is about project management, about business strategies, about sustainable project management. This research can be of importance for the future development of the project management profession and for the discussion to make project management sustainable, so can be seen as ultimately societal. But it can also be relevant beyond project management. It offers insights in the possible way on how business strategies can efficiently be executed throughout project management. This project can be the start of more research into unexplored fields. The relevance of this research on the field of Facility Management is limited. However, it is the responsibility of the Facility Management department to organize the companys sustainability. 7. REFERENCES Aaron J. Shenhar, Dragan Milosevic, Dov Dvir, Hans Thamhain, Linking Project Management to Business Strategy, Published by PMI Ashley Jamieson (2005), Moving from corporate strategy to project strategy, Publication: Project Management Journal, Date: Thursday, December 1 2005 Atkin, B. Brooks, A. (2009), Total Facilities Management, Published by Wiley Blackwell, (third edition) pp. 54-64 Baarda, dr. D.B., Goede, de dr. M.P.M., (2001), Basisboek Methoden en Technieken, Handleiding voor het opzetten en uitvoeren van onderzoek, Groningen: Wolters Noordhoff; p. 357, 360, 364 Barrett, P. Baldry, D. (2003), Facilities Management, towards best practices. Published by Blackwell publishing (second edition) pp. 221-225 Board of directors Centraal Boekhuis. (2009), Policy plan; Samen van goed naar geweldig, pp. 16-30 Centraal Boekhuis; https://cbnet.centraal.boekhuis.nl/default1.htm, Personeelsgids Centraal Boekhuis (consulted on oktober 2009) Centraal Boekhuis; https://cbnet.centraal.boekhuis.nl/default1.htm, Geschiedenis van het bedrijf (consulted on October 2009) Centraal Boekhuis; https://www.centraalboekhuis.nl/, Organizational structure (consulted on October 2009) Cramer, Jacqueline (2002), Ondernemen met hoofd en hart: duurzaam ondernemen: praktijkervaringen, Uitgeverij Van Gorcum Derek H T Walker (2004), A Balanced Scorecard approach to project management leadership, Publication: Project Management Journal, Date: Wednesday, December 1 2004 Dragan Z Milosevic Sabin Srivannaboon, A two-way influence between business strategy and project, management References and further reading may be available for this article. To view references and further reading you must purchase this article.Publication: Department of Engineering and Technology Management, Date: 22 May 2006. Dragan Z Milosevic, A theoretical framework for aligning project management with business strategies, Publication: Project Management Journal, Date: Tuesday, August 1 2006 International Project Management Association (2006), IPMA Competence Baseline version 3, pp. 9-16 Johnson, G. Scholes, K. and Whittington, R. (2009), Fundamentals of strategy, Published by Pearson Education Limited, (first edition) pp. 02-20, 276-281 Kloosterboer, P. (2005), Voor de verandering, over leidinggeven aan organisatieveranderingen, first edition, Published by Academic Service (Den Haag), 129 pages Kolk, Ans (2003), Het eind van maatschappelijk verantwoord ondernemen, of het begin?, Amsterdam University Press Labuschagne, Carin. (2005), Sustainable project life cycle management. Development of social criteria for decision making. University of Pretoria etd. Maas. G. and Pleunis. J.W. (2006) Facility Management, Strategie en bedrijfsvoering van de facilitaire organisatie, published by Kluwer (second edition), pp. 65-67 Maylor, H. (2005). Project Management, Published by Pearson Education Limited, (third edition) North, Klaus (1997), Environmental business management: an introduction, Editie: 2 204 pages. Office of Government Commerce, (2005), Managing successful project using Prince2, Published by TSO, (fourth edition) pp. 7-9 Peter Morris Ashley Jamison,Translating Corporate Strategy Info Project Strategy: Realizing Corporate Strategy Through Project Management, Publication: PM Network, Date: Saturday, October 1 2005 PricewaterhouseCoopers (2007), Transpirantiebenchmark 2007, maatschappelijke verslaglegging, ministerie van Economische Zaken, December 2007 Prince2 Foundation Office of Government Commerce. (2005). Managing successful project using Prince2 Saunders, M. Lewis, P. and Thornhill, A. (2009), Research Methods for business students, Published by Pearson Education, (fifth edition) pp. 10, 140, 145-147 Silvius, G. (2009), Its business but not as we know it, Utrecht University of Applied Sciences, published by Tuijtel, pp. 41-60 Tony Grundy (2001), Strategy Implementation Through Project Management, Published by Hawksmere Twynstra Gudde (2000) https://www.twynstragudde.nl/kennisbank (accessed on November 2009)

Strategic Marketing Plan for a Water Bottling Company

[pic] Strategic Marketing Plan for Water Mart Systems (Pvt.) Ltd [pic] Index Page |1.0 INTRODUCTION |3 | | 1.1 - Definitions for marketing |3 | | 1.2 – The role and the importance of marketing in strategic planning |3 | | 1.3 - Introduction to the company – Water Mart Systems (Pvt.) Ltd |5 | |†¦show more content†¦CONCLUTION |20 | | | | |7. REFERENCES |21 | 1. 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Table of Content Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1 Brief on Seven-up Bottling Company Plc†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... 3 * Company’s Product Mix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 * Company’s Marketing Strategies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... 6 The Product – â€Å"Mountain Dew†Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 Product Mix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦

Traditional Versus Activity Based Costing-Free-Samples for Students

Question: Compare Traditional Costing with Activity Based Costing (ABC). Do you feel ABC is an improvement over traditional costing? Answer: Introduction In business there is occurrence of multiple costs in manufacturing of goods or rendering of services. The manufacturing organizations have to distribute the cost occurred for raw material,, labour, and overhead to the goods produced in order to determine the overall cost of the manufactured goods. In costing there are various methods for allocating the all the costs to the goods and services. Some of important cost allocation methods are traditional costing method and activity based costing method. In this essay, there will discussion on both of these costing methods and difference between them will also be explained. The traditional costing method and activity based costing method both are used to allocate the indirect cost incurred during the manufacturing of goods or providing the services. The main role of both these costing methods is to calculate the overhead costs and allocate them to the products using the certain cost drivers. Comparison of Traditional costing method and activity based costing method The traditional costing method of cost allocation is most easy and frequently used method for allocating the factory overhead to the products. The main reason why the traditional costing method is frequently used is because of its simplicity and easy to apply characteristics. Under this costing method, all the overhead cost (factory overhead) are allocated to the different products using the single cost driver such as direct labour hour method or machine hour method or direct material used method (Cooper and Kaplan,1991). There are many potential problems associated under this method like use of single recovery cost driver to allocate all the overhead irrespective of overhead consumed under respective product or not. This problem give rise to critical cost issues that can harm the companys performance. Under traditional costing method, the cost allocation takes place in two stages. In first stage, all the overheads are calculated by reporting all the overhead cost to the cost centers . In second stage, all the overheads cost are distributed form the cost center to the different products in the proportion of cost driver used by each of the product in the respective period (Hayden, 2017). The traditional costing method of cost allocation does not help in effective operating management performance system that will help managers to obtain the relevant information about the products to help in improvement of business performance. The users of the traditional costing method make unrealistic assumption that volume metric is the most common underlying driver of the manufacturing overhead cost. Under the traditional costing assigns all types of overheads using the single recovery rate among the products manufactured by the company. The traditional costing method of cost allocation has failed after company has started using the machines and other different tools for manufacturing of products. The modern manufacturing process involves many activities to produce any product and it is completely wrong to allocate the overhead costs using the allocation base that has no relation with the activities used in the manufacturing of products. To solve all these problems, the new costin g method has been introduced known as activity based costing system (Bromwich and Bhimani, 2005). The activity based costing method is very unique and most accurate method of cost allocation as this method completely based on the actual consumption basis. As per this method the complete manufacturing process has been divided into many stages and each stage consumes some costs. The certain activities can differ depending upon the products manufactured by the company. Every activity used in the manufacturing process critically based on some cost driver such as if product is processed through certain machine than the cost driver will be machine hours. The activity based costing system identifies the activities that are performed to make the product fit for the consumption and then allocate overhead cost linked with particular activity to the products using the recovery rate that define cost driver in respective activity. For example, the overhead cost associated with the use of machines will be apportioned among the products using the machine hour rate recovery rate not by the labor hour recovery rate (Cooper and Kaplan, 1991). The major advantage of this method is that it recognizes the relationship between the costs, activities and products, and by using this relationship it allocate the all the overhead costs to the products using the most real allocation method which helps he manager in improving the business performance and eliminate any non-value added activities (Hayden, 2017). The below table clearly shows the difference between the traditional costing method and activity based costing method: Basis of Difference Traditional Costing Method Activity based costing method Cost Pool Traditional costing method used one cost driver or maximum two Activity based costing method used multiple cost driver that itself represents the activities undertaken in the production Rate applied This costing method uses volume based cost driver This costing method uses activity based costing driver which is non-financial in nature Benefits Simple, inexpensive and easy to apply Provide accurate product costing and help in performance evaluation It is important to understand the difference between the traditional costing method and activity based costing method using the numerical example. Example: Following the cost incurred of the manufacturing of the two products P and Q by ABC Company. Direct Material cost $ 15,000.00 Direct Labour cost $ 45,000.00 Overhead Costs Setup the machine $ 9,500.00 Material receiving cost $ 5,500.00 Other information Labour hours 450 Hours (P: 60hrs and Q: 40 hrs) Number of Setups 95 (P: 45 and Q: 50) Number of Requisite 55 (P: 35 and Q: 20) Material P: $ 10000 Q: $ 5000 Cost Allocation using the traditional costing method Traditional Costing Method Particulars P Q Direct Material cost $ 10,000.00 $ 5,000.00 Direct Labour cost $ 25,000.00 $ 20,000.00 Overhead cost $ 8,333.33 $ 6,666.67 Total Cost $ 43,333.33 $ 31,666.67 Cost Allocation under activity based costing Activity Based Costing Method Particulars P Q Direct Material cost $ 10,000.00 $ 5,000.00 Direct Labour cost $ 25,000.00 $ 20,000.00 Overhead Costs Setup the machine $ 4,500.00 $ 5,000.00 Material receiving cost $ 3,500.00 $ 2,000.00 Total Cost $ 43,000.00 $ 32,000.00 Conclusion It can be said that traditional cost method provides only the basis for cost allocation not the performance measuring method as per costing techniques. On the other hand activity based costing is useful method for cost allocation as it can also be used for performance measurement. References Bromwich, M. and Bhimani, A., 2005.Management accounting: Pathways to progress. Cima publishing. Cooper, R. and Kaplan, R.S. 1991. Profit Priorities from Activity-Based Costing. [Online]. Available from: https://hbr.org/1991/05/profit-priorities-from-activity-based-costing [Accessed on: 28 February, 2018]. Hayden, A. 2017. Activity-Based vs. Traditional Costing. [Online]. Available from: https://quickbooks.intuit.com/r/pricing-strategy/activity-based-vs-traditional-costing/ [Accessed on: 28 February, 2018]