Organizational Structure + Principal-Agent Problem Essay Example For College

When the manager is appointed, the shareholders face a different problem. Shareholders are unable to observe all the actions & decisions taken by the managers. A manager may use various reasons to cover himself for the company bad performance by blaming on the market condition, high year production cost due to raising raw material or greater competition.

In actual fact, if the manager were to put in his best effort, the company’s performance will be much more better. Despite the problems face between the shareholders & managers, there are mechanisms to prevent managers from maximizing their own interest & sacrifice the profit objective: Market for cooperate control If the manager’s performance is bad as the company is taken over by the other company, the management team will be changed so they don’t sacrifice the interest of shareholders.

There is an internal competition for managers within the company. The managers have to take care of the interest of the shareholders to prevent their positions to be replaced by the lower management team. There are some legal requirements & code of conduct which may prevent managers from achieving their own self-interest & sacrifice profit. First of all, public companies in particular are required to provide an annual report to the shareholders. An external auditor is needed to check the company’s account & verify the annual report.

By having all these, actions taken by the managers can now be better analyzed by the shareholders. This prevents managers from trying to achieve their own satisfaction. On top of this, a board of directors is also formed to check on the managers’ decision making. This board of directors is made up of executive directors (directors who are also managing the company) & non-executive directors (external parties). In Malaysia, there is a suggested rule for good practice.

At least one third of the members in the board of directors must be non-executive. With this, the monitoring of the managers’ actions becomes more credible. Reward System Managers can be given some kind of rewards/incentives to encourage them to make decisions which helps shareholders to get maximum profit. There are few types of reward system: Shareholders get a fixed dividend, the rest—manager’s income. In this reward system, shareholders will successfully get the managers to maximize profit because the managers’ ncomes are directly linked to the profit figure. This system however suffers from a major weakness—all risks are taken over by managers. (This is considered to be unfair)

Managers get a fixed income In this reward system, receiving fixed amount of income does not motivate managers to maximize profit on shareholders’ behalf. Greater efforts by managers are not rewarded which lower effort is not penalized since the income received is fixed. There is one advantage however—Manager will bear less risk & feel more secured in their employment.

Reward based on past year profit performance ( 1 year) In this reward system, managers will be more motivated to maximize profit. However, managers will have tendency to make business decision that create immediate impact within that 1 year while rejecting decisions which brings profit at a later point in time. Decisions to expand a factory, decisions to carry out research & development—all these decisions will only bring profits after a few years.

Marketing Strategies For Apple And Dell

Apple Inc. is a multinational organization renowned for its production of consumer electronics. Its range of products encompasses the Mac, iPod, iPhone, recently released iPad, and software such as Mac OS X, iTunes, and iLife. Originally founded in California on April 1, 1976 under the name Apple Computer Inc., the company rebranded on January 9, 2007 to signify a transition from personal computers to consumer electronics. With a global workforce of approximately 35,000 individuals, Apple has transformed the computer industry through its imaginative and aesthetically pleasing devices.

Dell Inc. is a multinational organization that specializes in manufacturing PCs and related products and services. Founded in 1984 in Texas by Michael Dell under the name PCs Limited, the company’s objective was to sell computers compatible with IBM PCs using off-the-shelf components. In 1988, it changed its name to Dell Computer Corporation and later rebranded as Dell Inc. in 2003. As of 2009, Dell employs approximately 76,500 individuals. Renowned for its direct customer relationship strategy, Dell offers customized PCs designed to meet individual customer preferences while eliminating middlemen.

Customers have the option to visit the Dell website and make a purchase for their desired PC. Apple’s Situation Analysis has involved many chief executives over time, each contributing their own strategies and making necessary adjustments. While certain aspects of the company may have changed, Apple still upholds its reputation for encouraging uniqueness and excellence, which in turn attracts talented individuals to join its workforce. Furthermore, Apple has successfully tackled numerous obstacles, including significant delays in software development during its initial stages.

Furthermore, Apple’s sales representatives lacked direct access to corporate clients, resulting in the company’s inability to project a favorable business image. Consequently, employee turnover rates were high. Consequently, Apple made changes to both its products and marketing strategies to better align with the computer industry landscape. They focused on providing products that met customer demands. Additionally, Apple began recruiting individuals with professional business backgrounds to effectively engage and communicate with corporate managers, who shared similar professional backgrounds.

Apple experienced a 30% increase in sales, going from $1.9 billion in 1986 to $2.66 billion in 1987 due to its business market expansion. In addition, there were issues within the sales, marketing, and engineering departments. The marketing department faced disorganization and lacked respect from technical staff members while senior management was primarily focused on their own departmental responsibilities. To address these challenges, Apple’s CEO Sculley introduced the position of Chief Operation Officer to centralize operations and involve senior management in day-to-day decision-making. This change also allowed Sculley to allocate more time for long-term planning.

The company’s growth led to the realization that its markets were distinct and required different expertise. As a result, Apple split its international divisions and created the Apple USA division to focus on sales in the United States.

Additionally, Apple faced challenges in May 2008 when a non-profit organization called Climate Counts ranked them last among electronic companies, awarding them only 11 points out of 100. To address this issue, Apple upgraded the iMac and Macbook in October 2009.

Furthermore, Apple faced criticism for keeping their Chinese workers in unfavorable conditions and providing them with low pay.

This issue was brought to the attention of the people through media. Apple immediately launched a thorough investigation and collaborated with their manufacturers to ensure that conditions met Apple’s standards. Situation Analysis for Dell: Dell PC was established in 1986 and has since revolutionized the IT industry by introducing groundbreaking developments crucial for home, small business, and enterprise computing. Dell’s R&D team comprises highly skilled product designers and engineers who have played a pivotal role in disseminating Dell Technology worldwide.

Dell’s success and innovation can be attributed to its dedication to meeting customer needs with improved solutions. One major concern addressed by Gartner Analysts was whether the PC business, which is Dell’s core business, is at risk. Michael Dell, the CEO and chairman of the company, stated that if a user chooses to migrate their client computing to servers in the datacenter, Dell can effectively meet their requirements. In fact, they already offer “Flexible Computing Solutions” as a strategy to cater to consumer needs.

Today, Dell announced the introduction of a new product called Demand Desktop Streaming. This innovative solution streams the operating system and applications to a diskless desktop, shifting costs to servers and storage. After returning as CEO earlier this year, Michael Dell emphasized the importance of bringing back customer-centricity to the company and focusing on new markets to meet consumer demands. Additionally, Dell plans to ship Linux on a Desktop and has recently announced the launch of Tablet Computers. However, Dell user Peter Ulyatt encountered a problem with his CD drive and contacted Dell’s support team. Unfortunately, after being placed on hold for 45 minutes, he struggled to understand the technician who ultimately identified it as a software issue.

The call was initially transferred to the software technician but was dropped. When Ulyaat called back, they were put on hold for another 45 minutes and asked for the software desk. They waited for an additional half-hour before eventually hanging up. This incident directly contributed to Dell’s customer-satisfaction rate dropping 6.3% according to a survey conducted by the University of Michigan. In an effort to reverse this decline in service, Dell is taking action. John Hamlin, the senior vice-president of Dell U.S. consumer business, explains that the company is hiring thousands of additional representatives this year and working towards reducing call transfers.

According to him, Dell reports a 35% surge in customer satisfaction compared to last year based on internal weekly surveys of 5,000 customers. Dell intends to revamp its support system due to the inefficiency of the direct model. The message conveys that new Personal Computers come with basic support while additional support and services incur extra costs. Problem 3: In 1995, Dell introduced the ‘direct model’ for selling products to customers when it entered the Chinese market. This successful model was also effective in urban areas of China.

Dell experienced slow growth in 2004 and 2005 primarily due to the failure of their ‘direct model’ in the semi-urban and rural markets of China. This was attributed to the limited internet access and low credit card usage in these areas. Consequently, Dell’s market share in China began to decline by late 2005. To combat this, Dell should have focused more on selling their products in urban areas rather than relying on rural areas. Additionally, increasing their advertising efforts in these regions could have been beneficial. Apple, on the other hand, employs unique marketing strategies. Rather than simply promoting product features and specifications, Apple creates an image of superiority for their products. Their advertisements for the popular “iPod” feature individuals enjoying themselves at parties and dancing while using their iPods. The backgrounds are vibrant and energetic, portraying Apple’s products as extraordinary compared to competitors.

By owning an iPod, one is automatically inclined to join a unique community consisting of fellow iPod owners. The release of the iPod has caused a sensation, establishing it as an essential possession, especially among the younger demographic. Recognizing that people are attracted to products desired by others and desire to be part of such groups, Apple’s strategy revolves around enhancing existing products rather than being the first in the market. Their emphasis lies on product improvement rather than invention, prioritizing delivering good quality and incorporating captivating features that enhance the appearance of their products.

Apple’s Newton, a graphic interface, was an unsuccessful invention. Nevertheless, the company has reembraced this approach. They heavily depend on their loyal fans and customers to advocate for their product. Apple is renowned for its profound understanding of consumers. The remarkable quality of their products often leads satisfied owners to recommend them, resulting in word-of-mouth sales. Their philosophy revolves around creating exceptional products that effortlessly market themselves.

DELL’s marketing strategies revolve around direct sales to consumers, eliminating the involvement of intermediaries. This approach lowers advertising expenses and boosts profits. Moreover, customers have the option to purchase personalized laptops from Dell’s website at competitive prices in comparison to rival brands such as Apple, HP, Lenovo, etc.

Dell focuses on the financial aspects of their consumers and offers custom-made products, while Apple emphasizes quality, extra features, and attractive designs. The choice between the two depends on individual preferences and budget. Personally, we recommend Dell because they offer similar features at a lower price. • • •N. A. (2009). Dell’s Problems in China. Available: http://www. icmrindia. rg/casestudies/catalogue/BusinessStrategy/BSTR193. htm. Last accessed 20 Feb 2010. •Patrick Thibodeau. (2007). Is Dell’s core PC business at risk?. Available: http://www. infoworld. com/t/hardware/dells-core-pc-business-risk-122. Last accessed 15 feb 2010. •n. a. (2008). Shopper Research Pinpoints Loyalty, Problems. Available: http://www. ifoapplestore. com/db/2008/02/27/shopper-research-pinpoints-loyalty-problems/. Last accessed 18 feb 2010. •n. a. (2009). Apple Computer Inc. Available: http://www. answers. com/topic/apple-computer-inc.

Last accessed 14 feb 2010. •Richard D. Freedman and Jill Vohr. (1998). APPLE COMPUTER, INC.. Available: Last accessed 14 feb 2010. •Steven Levy. (2010). Garage start-up. Available: Last accessed 16 feb 2010. •Steven P. Jobs. (2010). Reinventing Apple. Available: /280816 /Reinventing-Apple. Last accessed 16 feb 2010.

Critical Analysis Of On My First Son

Jad Farha Critical Analysis: On My First Son By: Ben Jonson The entire poem lampoons the theme of an existing paradox between death and joy. Some perceive this poem as a sign of remorse, exhibited by Jonson, for murdering a fellow actor motivated by jealousy. This makes some people assume that he shifted from being a defiled priest to a priest seeking redemption. The previous presumptions are slightly foolish since all throughout his poem Jonson undermines his creator’s demeanor by delineating him as a God that suffers from human emotion such as jealousy, greed, and egocentricity.

Literary elements elucidate Jonson’s true beliefs, for example the extended metaphor (lines 3-4) where the speaker compares his son’s life to a loan that he has to pay back. So the latter literary element is a vivid justification of Jonson’s sacrilege for he considers himself in debt and that he can only pay it back through letting go of his son’s life. In addition the bible clearly states that life on earth is a gift; as a clergyman that idea should be etched into Jonson’s mind but instead he portrays God as some voracious entrepreneur waiting for the son’s birthday to strip him of his life, or in others words his money.

For further verification of the preceding conjecture one resorts to the last two lines of the poem (epitaph) where the speaker/ Jonson vows never to love any soul too much (as in more than God) because in his opinion God will strip him of his beloved; indicating Jonson’s blasphemy. One might denote that the Bible includes some sort of hierarchy of beloveds; that is with no doubt a fact but the bible never described God as a jealous soul, one that kills and causes torment. The speaker is anything but a man of the lord because the creator’s servant must praise his maker instead of questioning his ways.

That’s exactly what Jonson fails to do and this is seen in lines 5-6. Moreover as a clergyman, a remorseful one indeed (sarcastically), Jonson should rid people of decadence instead of encouraging envy. Envy and inhumanity are discerned in line 6 where Jonson asks himself to stop lamenting his son’s death and envy him for it. Life is a spectrum of two ends: a bright and a dark one; Jonson, by far, has dominated the dark one altering his previous placement from servant of the Lord to servant of the Dark Lord (the devil).

Line one, a biblical allusion, refers to the image of Jesus sitting to the right side of God. This, to the naked eye, suggests the importance of Jonson’s son, but as one reads between the lines one can decode the fact that the speaker believes his son to be equivalent to God(Jesus), linking this to the epitaph and the extended metaphor which highlight blasphemy (for all men are equal but no man is equal to God). Once the main ideas are associated the entire poem can be viewed as an entity emphasizing on the fact that this is an apostrophe degrading Christianity and the creator himself.

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