Resort and Spas

Introduction The resort and spa business has over the years developed into global phenomena as businesses acknowledge the unique needs of travellers and business people. The resort and spa industry is one of the industries that have experienced growth through implementation of different strategies and processes within the hotel industry.Advertising We will write a custom essay sample on Resort and Spas specifically for you for only $16.05 $11/page Learn More As a result, this essay is going to analyze two factors that are going to be analyzed in respect to implementation of strategies in the resort and spa industry. Strategic management is an important ingredient in the success of any organization since it involves planning for the purpose of achieving organizational goals. Strategic goals and initiatives are imperative in the development of the resort and spa industry especially in this competitive world of business. The issue of segmentation and cost d ifferentiation are going to be compared and contrasted as towards their effectiveness in the resort and spa business. Strategic management has been used in changing the business environment for any business in the world. As a result, this essay is going to analyze the effects of strategic management on the implementation of business processes. In particular, the essay is going to analyze the effects of strategic management in the resort and spa industry. We are going to analyze the key difference and aims of the two strategies of cost leadership/focus and segmentation in this industry. Analysis of the Resort and Spa Business The resort and spa business has evolved over the years from a traditional craft to a multi-billion industry in the world. The intense competition in the world has seen hotels groups launch services to reach out to their customers in this segment. As a result, different strategies have been deployed in ensuring that customers sample services from certain service providers (Bodeker, G. Cohen, M, 2012). In this case, strategic management has been used in roping in talent, cost techniques or services in a bid of ensuring differentiation in the industry as the resorts scout for more business. Strategic management has been used in achieving long term objectives of an organization in all fields including the resort and spa industry (Hing, N. Breen, H, 2009). Some of the strategic management techniques that have been used in the resort and spa business include conducting business analysis on the industry. For instance, we make use of SWOT and PESTEL analysis in the process of analysing industry strengths and weaknesses (Johnson, G., Whittington, R. Scholes, K, 2011).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The development of some of the top notch resort and spa business had to conduct business analysis for their business to understand and come up with informative strategies. Through the use of SWOT analysis, resorts and spa industry players try to analyze the external opportunities and threats that exist in the market. Whilst, at the same time looking at the internal structures of an organization to determine the viability of undertaking organizational goals. Strategic management relies on the issues gathered through these SWOT and PESTEL analyses in relation to adopted organizational goals and objectives (Baum, 2006) The resort and spa industry is a unique industry where service and cost are the main drivers of growth and competition. As a result, this industry has undergone a lot of transformation to meet with the needs and expectations of the customers. The resort and spa industry grew in the past years when the element of health and fitness came into the hotel industry. As a result, many hotels started with offering spa treatments to its customers with the aim of attracting more customers (Cohen, M. Bodeker, G, 2012) . Moreover, some health and fitness centres introduced spa treatments that inculcated massages and treatments as a niche service within the hospitality industry. In the hotel industry and segment, resorts introduced spas as a means of increasing its service and products to its customers. However, many spas were launched all over the globe offering different kinds of treatments (O’Fallon, M. Rutherford, D, 2010). The concentration of spas in different locations all over the world led to the mushrooming of spas which offered poor services and at the same time were run by untrained staff. For instance, in India and Malaysia, the resort and spa industry in plagued with an influx of spas which were unregulated and offering poor services (Kaye, 2007). In some cases, brothels were disguised as spas and this did not help much in boosting the spa industry. Thus, some resorts and spas came up with purely unique premium wellness and treatment services under a segmentation strategy (Oon charoen, N. Ussahawanitchakit, P, 2008). Segmentation vs. Cost Leadership/Focus in Resort and Spa Industry In the resort and spa industry, several factors are used in the development of business and this includes two major factors. These factors are service and cost which drive the resort and spa industry in all global locations where hotels and other amenities are located. When to we analyse segmentation we have to look at the services offered within the resort and spa industry (Hill, C. Jones, G, 2009).Advertising We will write a custom essay sample on Resort and Spas specifically for you for only $16.05 $11/page Learn More We also have to look into human resources/staff, training and support services needed to offer these services. While on the other hand we have to analyse cost within the resort and spa industry and how this factor affects the industry (Muphy, G. Dempsey, C, 2010). Cost factor implies that organizations have to come up with strat egies which ensure operating costs are lowered to ensure that optimum profit levels are achieved. Input costs are some of the major costs that affect production within an organization and therefore the resort and spa industry is also imparted with these costs. Spas and resort require specialised equipments and knowledge to operate unique spa services. In terms of investment in the resort and spa industry, resorts need to come up with products that are affordable for the customer (Lim, 2007). As a result, many resorts and spa offer their services as a complimentary to other services such as dining and accommodation. This is usually done by big hotel chains which offer these services within their health and fitness program. This is in contrast to organizations which offer spa services as the core strategy of their businesses since these organizations only invest in spa oriented services (D’Angelo, 2009). Undertaking strategic management based on cost leadership means an organiz ation will analyze its potential market and come up with services that cater for this market. Since the resort and spa market is faced with a lot of competition for customers, many organizations will fight for consumers based on cost leadership (Engel, 2011). Cost planning is an important factor within any organization and as a result, making use of the cost leadership strategy tends to emphasize on lowering costs or making use of economies of scale. Hotels conglomerates such as Hilton and Hyatt hotels have numerous resorts and spas backed up by a huge customer base. These hotels have the advantage of their huge market presence in the hospitality industry and therefore they make use of the cost focus and leadership strategy (Hoskisson, R., Hitt, M. Ireland, D, 2008). For instance, the Hyatt hotels offer premium services to customers and to attract the loyalty of these customers, they have a cost focus services within their spas (Roll, 2005). They make sure that spa and wellness ser vices are offered at low cost compared to their other services. This strategy has been mostly adopted across the resort and spa industry in several global locations. Resort and spas have resorted to becoming amenity localities where customers get their wellness or treatment services as additional amenities (Enz, 2009). Cost focus and leadership strategies are means of lowering costs while at the same time attracting a huge clientele base with purpose of making profits.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This strategy in most cases work for the short term since customer satisfaction is usually pegged on customer value (Pryce, 2008). Cost focus and leadership does not focus on the service being offered and as a result, this strategy is mostly undertaken where resort and spa services are offered as complementary or non-core services of a hospitality organization (Robbins, S., DeCenzo, D. Coulter, M, 2012). Segmentation is another key strategy factor in the hospitality industry sine this factor looks into the operation of a resort or spa based on its services. Segmentation differs from cost leadership or focus since it focuses on service provision or product differentiation based on a specific market segment. In most case, segmentation tends to offer products and services to a certain class of consumers (Raybould, M. Wilkins, H, 2006). In this case, resort and spas will offer services to customers who are keen on getting health and spa treatments exclusively. Most of the customers wh o are targeted through segmentation are those who want to be targeted for certain services that mainstream industry players do not offer (Erfurt-Cooper, P. Cooper, M, 2009). In terms of service offering, resort and spa have different strategies and thus some offer exclusive health, wellness and spa services as their key product offering. These spas give these exclusive services to their customers with emphasis being on quality service, value and expertise. The resort and spa industry requires the services of well trained professionals who have an understanding in the resort and spa industry (Ireland, R., Hoskisson R. Hitt, M, 2011). These professionals are well trained in offering different types of treatments and massage such as the traditional Urut massage, foot reflexology and wellness services. Resorts and spas which offer niche wellness and treatments services are different from other establishments which offer basic massage services (Wood, R. Brotherton, B, 2008). These cat egory of resort and spa have a different clientele in mind how have no concern for cost and are only interested in quality and value for the service provision. The main idea behind segmentation is differentiation in that these resorts and spas have an understanding of their competitors and want to offer unique services in the industry. Due to cut throat competition in the industry, it is imperative for every resort and spa to target specific customers for its organization (Horner, S. Swarbrook, J, 2005). The resort and spa industry is mainly oriented towards service as a key factor in many regions globally. As a result, the development on the spa industry in countries such as Malaysia suggests that service innovation plays a critical role in business success. The differentiation strategy which segments the market is different from the cost strategy since it aims at giving value against gaining quantity in relation to the cost strategy (Keith, 2009). Differentiation involves a lot o f techniques such as training and hiring health and wellness experts for the sake of maintaining quality services (O’Fallon, M. Rutherford, D, 2010). In some countries such as Malaysia and Singapore, there are standards and oversight authorities in the regulating the resort and spa industry. Due to the uniqueness and value of the segmentation strategy, it is necessary for premium cost to be attributed to this strategy. This is informed by the problems posed by the cost leadership strategy which is prone to poor services, competition and redundancy (Mill, 2008). Consequently, the differentiation strategy ensures service quality which has a direct influence on the customer satisfaction is ensured (Lee, T. Christine, P, 2010). Some of the resorts that practice this strategy include the Zoetry Wellness and Spa resorts located in different locations globally. It is indeed important to note that service quality is crucial to the success of an organization in the wellness and spa industry (Hoque, 2010). Thus, it is imperative for an organization to adopt differentiation strategies compared to cost leadership or focus based ones in the implementation of business goals and objectives. Conclusion The resort and spa industry has seen a lot changes since its inception not so long ago and thus these changes have been informed by different business strategies. The main focus of strategies in the resort and spa industry is cost and differentiation whereby these two factors are compared and contrasted. The cost leadership model has been adopted by many hospitality organizations with limited success since it does not serve the purpose of services required by the industry. When cost factors of low cost and high customer turnout are adopted service quality goes down and this affects greatly on customer value. This is unlike the differentiation strategy which focuses on the needs of the client and thus most of the time the customer is assured of good service and value fo r money. References Baum, T. (2006). Human Resource Management for Tourism, Hospitality and Leisure: An International Perspective. London: Thompson. Bodeker, G. Cohen, M. (2012). Understanding the Global Spa Industry. Manchester: Pelshiver, Bromberek, Z. (2012). Eco–resorts. Boston, MA: Oxford University Press US. Cohen, M. Bodeker, G. (2012). Understanding the Global SPA Industry. Oxford: Butterworth-Heinemann. D’Angelo, J. (2009). Spa Business Strategies: A Plan for Success. Manchester: Routledge. Engel, J. (2011). Accelerating Corporate Innovation: Lessons from the Venture Capital Model. Research-Technology Management, 54(1), 17-20. Enz, C. (2009). Hospitality Strategic Management: Concept and Cases. Atlantic City, NJ: John Wiley Sons. Erfurt-Cooper, P. Cooper, M. (2009). Health and Wellness Tourism: Spas and Hot Springs. Washington DC: McGraw-Hill Higher Education. Hill, C. Jones, G. (2009). Strategic Management Theory: An Integrated Approach. Boston, MA: Pear son Education. Hing, N. Breen, H. (2009). A Profile of Sydney Club Members: Implications for Strategic Management in a Competitive Environment. Australian Journal of Hospitality Management, 6(1), 76-79. Hoque, K. (2010). Strategic Management: Competitiveness and Globalization, Concepts. Los Angeles, CA: Cengage Learning. Horner, S. Swarbrook, J. (2005). Leisure Marketing: A Global Perspective. London: Laybird Publishing. Hoskisson, R., Hitt, M. Ireland, D. (2008). Competing for Advantage. New York, NY: Raven Press. Ireland, R., Hoskisson R. Hitt, M. (2011). Understanding Business Strategy Concepts Plus: Concepts and Cases. Manchester City: Radcliffe Publishing. Johnson, G., Whittington, R. Scholes, K. (2011). Exploring Strategy: Text Cases. Chicago, IL: Prentice Hall. Kaye, C. (2007). Quality in Hospitality and Tourism Services. Australian Journal of Hospitality Management, 6(1), 113-114. Keith, J. (2009). Coming and Going in Hospitality: Personal Observations after a Decade A way. Journal of Hospitality, Leisure, Sports and Tourism Education, 8(1), 89-94. Lee, T. Christine, P. (2010). The Relevance of Human Resource Management Theory on the Management Practices of Hospitality Providers on Phillip Island Victoria. Research and Practice in Human Resource Management, 18(1), 109-111. Lim, S. (2007). Spa Living: Ideas, Tips Recipes for Revitalizing Body-Mind-Spirit. Boston, MA: Springer. Mill, R. (2008). Resorts: Management and Operation. Cambridge: Cambridge University Press. Muphy, G. Dempsey, C. (2010). Management and Successes in the Hospitality Industry. San Francisco: SAGE. O’Fallon, M. Rutherford, D. (2010). Hotel Management and Operations. New York, NY: John Wiley Sons. Ooncharoen, N. Ussahawanitchakit, P. (2008). Building Organizational Excellence and Business Performance of Hotel Business in Thailand: Effects of Service Culture and Organizational Characteristic. International Journal of Business Research, 8(1), 22-26. Pryce, J. (2008). Knowledge Management in Hospitality and Tourism. Journal of Hospitality and Tourism Management, 11(1), 47-52. Raybould, M. Wilkins, H. (2006). Generic Skills for Hospitality Management: A Comparative Study of Management Expectations and Student Perceptions. Journal of Hospitality and Tourism Management, 13(1), 103-107. Robbins, S., DeCenzo, D. Coulter, M. (2012). Fundamentals of Management. Harlow: Prentice Hall. Roll, M. (2005). Asian Brand Strategy: How Asia Builds Strong Brands. New York, NY: Novinka. Wood, R. Brotherton, B. (2008). The SAGE Handbook of Hospitality Management. Sydney: SAGE This essay on Resort and Spas was written and submitted by user Caitlyn Bell to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Social, educational and economical impacts of the internet in the new millennium

Social, educational and economical impacts of the internet in the new millennium Introduction The Internet has emerged to be the most popular and advanced tool used for accessing information in the new millennium. The Internet is the most known transforming technology that man had ever developed before and it has all the capability of changing everything, including the activities people do on a daily basis. Moreover, the Internet is said to be the most important tool used when sharing information.Advertising We will write a custom research paper sample on Social, educational and economical impacts of the internet in the new millennium specifically for you for only $16.05 $11/page Learn More Effect of the internet on the society The use of the internet has openly transformed societies and all activities people do on a daily basis. The Internet, being one of the latest technologies to be developed on earth has the highest number of people who prefer using it for communication purposes. This is because the internet makes it easy for people living thousand of miles apart to communicate with one another freely and even visually. Moreover, the internet also allows people living in different geographical locations to effectively coordinate their business operations and even exchange events of their social lifestyles (Ghandchi, par. 1). Currently, almost everyone has an access to e-mail and other social sites that are available on the internet. Teenagers, for example, are the most common users of internet social sites. They log in to retrieve miraculous information and also chat with one another (Symonds, par. 4). Other social sites available on the internet include; Facebook, Twitter and Skype. These sites make it easy for people to chat and exchange social and cultural ideas (Symonds, par. 4). Despite all the good things, Internet technology has brought to the societies, there are several drawbacks accompanying it. Internet crimes for example; identity theft, hackers and other advanced monetary thieves are on the increas e globally (â€Å"Effects of Computers and the Internet on Society† par. 4). Many people don’t involve much in online businesses because of fear. Impacts of the internet on education The development of the internet several decades ago lifted up the education sector, which really benefited from this technology. There are several developmental measures that have been put in place with the help of the internet. The question people ask is whether this technology will cause more positive or negative effects on education. There is no doubt that over a decade ago, the internet has ushered in an amazing progressive revolution as far as informational development was concerned. The Internet is currently the most accessible sources of information both, locally and internationally.Advertising Looking for research paper on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Anyone can access the unlimited amount of inf ormation in the shortest time possible through the internet. The Internet provides an alternative way of accessing the information as compared to the old system, such as libraries, it is time saving and students, instead of spending their entire day looking for information in books, will only spend a few minutes to login into a website and retrieve the same information (Maroki, par. 5). The use of the internet in educational institutions is currently being supported by majority of educators worldwide. Many educational institutions are now seconding the idea of fully incorporating the technology in the education sector. This is because the internet avails to students the most updated articles and data creating a sense of immediacy (Maroki, par. 9). Nevertheless, bearing in mind that internet exposes students to a great amount of information, not all students use this technology for the academic purposes. Instead, majority of students use it to play games, chat and listen to music. Fo r this reason, using the internet is disadvantageous to education because it redirects students from academic concentration to social activities. This is evident in cases where instead of reading, students engage more in social sites unrelated to education. Nowadays, students don’t carry out their own assignment and research work. Instead, they simply copy-paste the information available on the internet and submit as their own works. Most educators feel that it will reach a time when the internet will fully replace using books as sources of information (Maroki, par. 12). This is considered to be very disadvantageous to the student for whom reading books in libraries provides the possibility to develop skills of not only retrieving the information but also engaging in thinking broadly (Maroki, par. 12). When students use the internet alone as the primary source of information, most of them lose their time by engaging more in social websites available on the internet. Additiona lly, frequent use of the internet for academic assignments and research without accessing books can cause mind erosion (Maroki, par. 12). This will happen because of the frequent tendency of accessing free information from the internet. The students thinking abilities will go down because they will not have the possibility to read books which helps in memory development.Advertising We will write a custom research paper sample on Social, educational and economical impacts of the internet in the new millennium specifically for you for only $16.05 $11/page Learn More Impacts of the internet on the economy It is clear that the internet has transformed businesses all over the world. Most companies nowadays have transformed from old e-commerce to modern e-business with the help of advanced internet technologies (Symonds, par. 6). This is primarily evident in cases where a company, through the internet, makes direct business connections with customers that are tho usands of miles away. Moreover, other companies are currently using more secured internet technologies to establish and intensify business relationship with their trading partners. This technological tool has seen many companies to grow economically and generate huge profits. Furthermore, it is cheap and easy to advertize products through the internet since everyone across the world can easily access the information very quickly. The other economic benefit is that trading partners nowadays can argue and negotiate on market prices online and even explore new market through the internet easily. Additionally, the internet has greatly reduced money spent as tax for any business transaction done online to about one cent (Symonds, par. 34). This is contrary to what business transactions done on banks demand. Notable to mention is that, for every bank transaction, 27 cent is charged as transaction fee (Symonds, par. 34). When processing a traveling air ticket through the internet, one pays $1 as transaction cost. This is cheaper than the $8 charged when processing the same through an agent (Symonds, par. 34). However, the use of the internet in business operation is also accompanied by several drawbacks that scare people from operating online businesses. Some of the negative impact includes the internet security assurance. In today’s world, we have hundreds of advanced internet hackers, e-terrorists and credit card thieves who spent their time on the internet developing fake connections. This has gradually lowered down customers trust and confidence to conduct business through the internet. Furthermore, lack of productivity power from workers is another common negative effect faced by most companies globally. This is observed in cases where employees spend most of their time on social websites instead of working (Beach, par. 5). Conclusion In summary, the internet technology has advanced tremendously in this new millennium. It is important to note that the int ernet use has both positive and negative impact on whoever uses it.Advertising Looking for research paper on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Beach, Justin. â€Å"Positive Negative Effects of the Internet.† E-how tech. 2011. Web. â€Å"Effects of Computers and the Internet on Society.† 2010. Web. Ghandchi, Sam. â€Å"The New Millennium: The Age of Thinking.† Iranscope. 1999. Web. Maroki, Neil. â€Å"The Impact of the Internet on the Education Systems in the New Millennium.† Business Library. 2001. Web. Symonds, Mathew. â€Å"The Economist.† The Net Imperative. 1999. Web.

See instructions-SIP analysis Essay Example | Topics and Well Written Essays - 1500 words

See instructions-SIP analysis - Essay Example es Climate, Achievement and Participation (CAP), all of which are part of the student learning and betterment of provision of educational services to them. Goals set by the district such as enhanced achievement of students, professional achievement of instructors and expansion of recruitment of qualified teachers. The inquiry process incorporates key strengths that should be a part of the improvement plan along with priority concerns related to â€Å"student achievement, instruction, remediation strategies, program implementation and professional development†. For each priority concern, the root causes and solutions are given. Master design plan, section A includes action and monitoring plans that should be taken in the lieu of improvement. For action plan, resources for implementation, time period and responsible people are described, similarly in monitoring plan, the success for implementation measurement, time period and responsible people are elaborated. In section B of master design plan, the evaluating plan for implementation is given that is helpful for measuring success of the plan. Under the heading of completing the SIP plan, several questions are asked, which should be answered using the concepts of CAP. These questions are related to policies and practices, testing systems, instructional strategies, available resources, funding, etc. At the end, budget for the overall cost of carrying out the plan is given that incorporates funds required for goals accomplishment and funds available. The School Improvement Plan can be linked to School Assessment Results based on goals and objectives designed for the improvement of student education. There are many programs that are started by the school management in order to get good results such as â€Å"Success For All† reading program, â€Å"Everyday Math† program and writing programs such as â€Å"Set-Up to Writing†, â€Å"Write Traits†, â€Å"Thinking Maps† for enhancing writing skills of students. The School

Business strategies of Zara Essay Example | Topics and Well Written Essays - 4250 words

Business strategies of Zara - Essay Example This research will begin with the PESTEL analysis of Zara. PESTEL is a tool which helps in analyzing the external environment for the company. This tool divides the macro environment into six factors which are Political, Economic, Social, Technological, Environmental, and Legal. The PESTEL tool will be utilized to assess the impact of these external factors on the apparel industry in Spain. Among several measures, the Spanish government has increased the corporate tax rate from 24 percent to 24.75 per cent including royalty payments. The increase in tax rates would be effective from 01 January 2012. The increase in tax rates has also been imposed on multinational corporations investing in Spain. The increase in corporate tax rate has led to an increase in the prices of garments and affected the apparel industry of Spain. The current economic situation of the economy is very weak and the average GDP growth of the economy has been very slow since 2007. The GDP growth of Spain was 3.7 p ercent in the year 2009 and 0.2 percent in the year 2010. There has been a major decrease in consumer spending and employment. However, the apparel industry of Spain has been recovering steadily amidst the recession. The export value of garment increased from $68,120 in the year 2009 to $88,821 in the year 2010. As estimated by the analyst the rise in consumer spending on textiles and food would increase by the end of the year 2013. Social As per a survey conducted by Fashion United, a resident of European Union spent 5.3 percent of their salary on clothing and footwear (Fashion United, 2013). This reflects that fashion plays an integral part in the lives of Europeans. Europeans like wearing fashionable clothes and footwear as it enhances their personality. The apparel industry manages to yield profits even amidst a slow economy. Technological Technology plays a pivotal role in the fashion industry. Information Technology has helped the fashion companies of Europe in improving the supply chain management. Majority of the fashion companies use their official website as a medium to communicate and provide information to their customers. European fashion companies use their website extensively as an important communication tool. Technology like Location Based Mobile Technology permits the retailers to track and communicate with their customers (Wang et. al., n.d.). Environmental Most of the European companies have introduced their own environment policies which believe in the conservation of environment and preventing environment degradation. Fashion companies in Europe have introduced their own environmental policies which include usage of ecological fabrics and biodegradable materials in the manufacturing of clothes and footwear. Legal Plagiarism is a huge offence in the fashion industry (Jones, 2005). As per the intellectual property act the company can obtain ownership rights for its work to prevent plagiarism (Canberra Institute of Technology, 2011). In the year 2007, John Galliano was found guilty by the court of France for plagiarism for copying the design of Willam Klein (Daily Mail, 2007). The retail companies found guilty of plagiarism will be tried in the court of their respective countries. Porter’s Five Forces Model Before developing a business strategy, a company needs to identify the forces which affect the profitability of an industry (Henry, 2008). The five forces are as follows 1) Threat of new entrants: If a particular industry is witnessing high profit then it would naturally attract new entrants. A lot of time and cost is invested by the

Promote In-Patient Safety Awareness between Staff and Inpatient in Dissertation

Promote In-Patient Safety Awareness between Staff and Inpatient in Regards of Incidence Misidentification at SMC - Dissertation Example Lack of managerial support, inability to develop a dynamic work environment, and failure to establish positive attitudes towards colleagues and the work itself were all found to lead to adverse outcomes in change implementation. Thus, improvement of managers’ performance along with the increase of staff members’ awareness and knowledge of wristband application practises and guidelines was emphasized in the project. Recommendations and implications for practise have been presented as well. Because the management was found out to be incapable of establishing a helpful environment for the members, it is important that training and support are provided for both the staff members as well as the management. In this manner, both parties can undertake the necessary transformations for improving a culture of safety through effective patient identification. Acknowledgments I would like to extend my thanks to my supervisor, Dr. Hala Bader Sulaibckh, for her support, encouragement, positive criticisms, confidence, and patience. Thanks also go to my thesis committee members, Dr. Jonathan Drennan and Ms. Kathrin Abu Zaid, for their time, guidance, and support. Extreme appreciation is extended to Asma Ahmed Al Arwalle for her support and willingness to help. Additional thanks goes to the Dr. Hala Sweed for her explanation and guidance during thesis journey. Also thanks goes to all the staff how welcoming me into their department. I was continually impressed by the level of care and compassion shown to the patients in the challenging Salmanyia Medical Complex (SMC) environment. A special thanks to those who participated in the project, for their spirited discussions and enthusiasm to make their hospital as safe as possible. I am also very grateful to Dr. Wafa Guirguis from the Ministry of Health as external advisor and evaluator for hospital clinical indicator for her help, keenness, and support in finding meaning in the measures. Last but definitely not least, t hanks to my family and friends, who’s determined, hopefulness was furtively appreciated. Table of Contents Page Abstract 3 Acknowledgements 4 Chapter 1 Introduction 8 1.1 Introduction 8 1.2 Rationale for carrying out the change 10 1.3 Summary 10 Chapter 2 the Literature Review 12 2.1Introduction 12 2.2 Inpatient Journey 12 2.3 Patient Safety 13 2.4 Flow of Inpatient Identification Information 18 2.5 Wristband Implementation: An Overview 20 2.6 Summary 23 Chapter 3 Methods 25 3.1 Introduction 25 3.2 Change process 26 3.3 Change model 28 3.3.1 Establishment of Urgency 30 3.3.2 A Guiding Coalition 30 3.3.3 Vision and Strategy 31 3.3.4 Communication 31 3.3.5 Empowerment of Members 32 3.3.6 Creation of Short-Term Wins 33 3.3.7 Consolidation of Improvements 33 3.3.8 Institutionalization of New Approaches 34 3.4 Summary 34 Chapter 4 Evaluation 35 4.1 Introduction 35 4.2 Current Situation before Change 35 Figure 1. Frequency and percentage breakdown: Use of IDs 37 Figure 2. Frequency and percentage breakdown: Reasons why IDs were not worn 37 Figure 3.Frequency and percentage breakdown: Name 38 Figure 4. Frequency and percentage breakdown: CPR 38 Figure 5. Frequency and pe

FORD MOTORS PHILOSOPHY vs TOYOTA MOTORS PHILOSOPHY

FORD MOTORS PHILOSOPHY vs TOYOTA MOTORS PHILOSOPHY Introduction A manufacturing/production system consists of a conversion system, which transforms inputs into output. The way conversion is done depends upon the nature of product/service and the nature of demand for such product/service. Thus the types of production are broadly classified into two categories, the continuous and the intermittent. The first category is appropriate where large scale production is required and the second is suitable where demand is non-uniform and seasonal and the product is not standardized. Ford Motors, as it is poised for mass producing standardized automobiles, naturally embraced the continuous production system. This essay attempts to compare and contrast the production philosophies and systems adopted by Ford Motors during 1930s and Toyota Motor Company during recent times. As Kanigal, Robert [1997] laid the basis for the concept of assembly line, Henry Ford, adopted the concept in1914 with due consideration to Adam Smiths philosophy of division of labour. He over simplified the tasks which led to specialization and business success (William A. Levinson, 2009). On the other hand, Toyota, which emerged as a different socio-industrial system, ironically had its roots in Henry Fords philosophy (James P.Womack, Daniel T.Jones, Daniel Roos, 2007) However, TMC digressed from the traditional Detroit philosophy based on the concept of lean manufacturing and thus carved a niche for itself and grew to such an extent that the American automobile industry shook. Henry Fords Contribution Earlier, cars were a specialized luxury, available only to the elite. Fords mass production scheme made the automobile accessible for the common man even, by virtue of Fords vision, a car for every man. This philosophy got extended to the whole range of consumer products and services which came into the reach of every common man. Henry Fords team nurtured innovation in all the 4 Ps (Product, Process, Position and Paradigm) to happen concurrently. The T-Model, which Ford and his team evolved formed the basis for emergence of an altogether completely new realm of thinking as regards manufacturing, which resulted in elimination of need for skilled labour (Joe Tidd, John Bessant, 2009). Though the basic elements existed earlier, Fords success lay in synthesizing them into a new form. The philosophy encompassed not only assembly operations, but supply chain and logistical aspects also. Features of Ford System of Manufacturing Standardization of products, components, equipment, process, tasks and tasks of control. Time and work study, to identify the optimum conditions for carrying out a particular operation and job analysis, to break up the task into small, highly controllable and reproducible steps. Specialization of functions and tasks within all areas of operation .there was considerable narrowing and re-utilization of individual tasks and an extension of division of labor. Uniform output rates and systematization of the entire manufacturing process. Payments and incentive schemes based on results. Elimination of worker discretion and passing of control to specialists. Concentration of control of work into the hands of management within a bureaucratic hierarchy with extensive reliance on rules and procedures. The Toyota production philosophy The system of production which, though had its roots in that of Ford Motors, has evolved as a distinctive one with unique features such as lean manufacturing, is known as Toyota Production System [TPS]. Sakichi Toyoda, his son, Kiichiro Toyoda and Taiichi are the founders of Toyota Motors. The founders and the engineer, Taiichi Ohno are the ones who appreciated and embraced the concept of Lean Manufacturing, founded on the original concept, being, JIT production (Sorensen, 1956). The founders of Toyota based heavily on the work of Edward Deming and the literature written by Henry Ford. Lean manufacturing (Simon, 1996) concept was even seen during the times of Benjamin Franklin. The business success and opulence of Detroit drove the Toyota team to be inquisitive about witnessing the assembly line and mass production. When the Toyotan delegation visited the US, they were not impressed. The Toyotan philosophy (Shigeo, 1996) aims at rationalizing the design of the manufacturing process and so it envisages elimination of three elements, being overburden [muri], inconsistency [mura] and waste [muda]. This entails that the process is flexible enough to be free from stress as it is supposed to generate waste. The Toyota system identified seven types of wastes, popularly called the Seven Wastes. They are over-production, motion (of operator or machine), waiting (of operator or machine), conveyance, processing itself, inventory (raw material), and correction (rework and scrap) Of the three lapses, i.e. overburden, inconsistency and waste, the latter, muda, seems to dominate the thinking of man as they see the fruitful effects of TPS. Origin of the concept of TPS It is known that Toyota Motor Company has got its inspiration not from the Detroit Philosophy, but rather from their observations made on their visit to the US in 1950s. The Toyota delegation first visited the automotive plants of Ford Motor Company located in Michigan. But they convicted that many methods adopted by the industry leaders were not satisfactory or effective. Some of the lapses they identified were: large amounts of inventory on site, the way the work was performed in various departments uneven pattern, i.e., with intervention of waiting between one operation and another operation resulting in islands of idleness, re-work in huge quantities at the end of the process. Later, the Toyotan delegation visited Piggly-Wiggly, the supermarket and observed how inventory management was carried out. The supermarket maintained scanty amounts of stock sufficient to cater to the customers and its employees for a short duration, stocks were reordered and instantly replenished. This indicated an important dimension, i.e., eliminating the need to maintain huge stocks and it was all done just-in-time. Taking cue from this philosophy, many US businesses made a direct attack on high inventory levels but ended in fiasco. This was because the American businesses did not understand the underlying issues. A principle of maintaining low levels of inventory also implies that proper alignment should be made with the vendors such that they were in a position to supply materials and components just-in-time. A complete delineation with the entire supply chain is necessary. This important aspect was ignored by the American automobile industry. It cannot be achieved overnight. Toyotans admitted that it took 20 years for them to implement JIT programme. Tenets of Toyotan Philosophy CONTINUOUS IMPROVEMENT Challenge: Work without challenge makes people indolent and lackadaisical and nonchalant. Kaizen: Capabilities, skills, efficiency and the like are not constant. They keep improving over time. Hence benchmarks need to be revised constantly. Innovativeness is a natural propensity. Genchi Genbutsu: Try to find the root cause before making correction of the apparent defects. RESPECT FOR PEOPLE Respect: Others must be respected. There should be mutual understanding and a readiness to accept responsibility to build mutual trust. Team work: Working together to achieve organizational and individual objectives through commitment. LONG-TERM PERSPECTIVE Short-term goals are mere derivatives of the long-term ones and the former are dependent on the latter and hence, priority shall be given to pursue/revise long-term goals. THE RIGHT PROCESS PRODUCES THE RIGHT RESULTS Creation of a continuous process flow facilitates inherent problems to be apparent at surface. Lacunae, if any, will come to surface; unevenness in loading of work stations will be indicated. Adopting pull system of production prevents overproduction. Under pull system of production, production scheduling is not done for large scale manufacturing. Master production schedule is made based on the current orders on hand. Once these orders are processed, the production process is stalled and rescheduled upon receiving new orders. Thus, products are pulled out of the system by customers. As long as production goes, care should be taken to avoid unevenness of flow of the process. This requires every material, tool, equipment and labour to be readily available at the respective work station to avoid interruption. Defect to be nipped in the bud. This means that if the job on the assembly line or at a work center is found to be defective, the same cannot be passed to the next work station/center without being rectified of the defect. This gives two-fold advantage; first, all the output that comes out will be defect free and secondly, there is no need to invest on a quality assurance system. Line stopping Where, on an assembly line, if any defect is noticed by the operator[s], he is given discretion to stop the assembly line by means of a switch and hold it till the defect is rectified. Continuous improvement is based on standardization of operations/tasks and employee empowerment. Standardization of operations facilitates fixing benchmarks for employees and thereby provides for comparison of performance against benchmarks. Once they are met by the employees, the benchmarks will be revised. This way, performance and efficiency keep increasing year by year, leading to ever increasing performance and productivity. Visual control system: This system alarms the workers of any lapse or defect that my arise during the production process. When the system identifies a defect, it alarms the workers through visual devices. Using fool-proofed technology: The Toyotan philosophy calls for using equipment of proven technology to ensure a steady and uninterrupted flow of the process as well as to get the output of the desired quality. DEVELOPING PEOPLE AND PARTNERS ADDS VALUE TO THE ORGANIZATION Leaders should be developed from among the employees who relish the philosophy, understand it thoroughly and are willing to share it with others. Exceptional personnel and teams who imbibe and nurture the aspirations of the company should be developed. Network partners and suppliers by sharing expertise should be honored and challenging assignments should be given to help them improve. A SUSTAINED EFFORT TO RESOLVING ROOT PROBLEMS DRIVES ORGANIZATIONAL LEARNING A personal involvement in a situation provides a thorough understanding of an issue. Decision making shall be done coolly through consensus, taking into consideration all possible options. Implementation shall be done quickly. This is based on the belief that collective wisdom is always superior to the individuals. Creating an environment in the organization so, that every employee indulges in learning things and improves performance on a sustained basis. This makes the whole organization, a learning organization. How Toyota Is Comparable To And Discernible From Ford Production Philosophy Toyota Relies on piece-meal style of production, i.e., produces only when there is pull from the customer Ford Whereas Ford manufactured in large scale to create stock based on estimated demand Nature of work Toyota Designed the work so, that workers had to be multi- skilled to perform complex tasks. Ford Over simplified complex operations such that workers needed low level skills Standardization Toyota Though was influenced by the writings of Edwards Deming and Henry Ford, was embarrassed on eye-witnessing the assembly lines of Ford Motors facilities in Michigan. Ford Could demonstrate business success through the policy of standardization of products, components, equipment, process and control. Pace of output Toyota production system was continual and produced in small quantities as each customer merited. No pile up of finished goods. Ford Held the policy of turning over at uniform pace to create huge pile up of stocks. Set up time cost Toyota Fundamentally designed for continual flow meriting frequent changeovers and set ups, but this could be offset by the extra costs of blocking capital in the form of huge pile up of stocks, characteristic of Ford Motors. Ford As the scheduling is done for continuous run, changeovers are less frequent and so, low set up time and cost. Workers discretion Toyota Allowed certain amount of discretion to workers on the assembly line such as empowering them to inspect the job for defects and to stall the flow on the assembly line to rectify the defect then and there and then let it go to the next work station to ensure zero defect situation and to eliminate the need of rework division. Ford Eliminated the scope for workers discretion to be used at the work place since each worker on the assembly line had to perform only a single task and the next task had to be done by the next worker. Workers had no authority to stop the flow of work as such, an incidence of defect is allowed to pass till the end of the process and the defective item is sent to rework division. Process design Toyota Focused on three criteria while designing its production system, i.e., overburden, inconsistency, and waste. These words are simple, but have far reaching effects. The last criterion is pivotal for the success of the company. The seven wastes concept indicates a treat amount of insight of the Toyotans and it is unique of Toyota. But, ironically, Toyotan inspiration is rooted in the writings of Edward Deming, who happens to be the American. The fun lies in the fact that American automobile industry did not pay heed to Demings philosophy, but non-Americans exhibited faith in it. Ford Bureaucratized as far as administration/control is concerned. All employees have to observe scalar chain and abide by the rules and procedures Long-term perspective in planning Toyota Ford Both companies look into far future. Developing people Toyota Promotes development of exceptional individuals and teams. Ford Does not focus on developing experts as it has over simplified the tasks, rather, workers might gain efficiency as they do the single task repeatedly. Pay and incentives Toyota Provides ample scope for personnel to grow as it nurtures innovation, employee participation and so on. Ford The policy is to pay and provide incentives based on results. Problem solving Toyota Employees are nurtured in such a culture that they address a problem through the root cause instead of taking a perfunctory look. Ford Employees are not trained along making deeper efforts in addressing problems. They used to leave the problem at perfunctory levels. Summary The world has witnessed a constant transformation as regards the automobile production/operations philosophy. The Fords mass production (produce to stock) philosophy received ample appreciation and was convicted to be the right path by most other manufacturers (1914). This has been evidenced by the way the Big Three, (Ford Motors, General Motors and Chrysler) flourished during early and mid 20th century. But the onset of Toyota production system, which is based on the philosophy of lean manufacturing, started sending tremors into the well complacent American automobile industrys regime. The principle of Toyota Motor Company (TMC) to eliminate wastes and subsequent TMCs success attracted other manufacturers who tried to copy, but in vain. They could not imitate the whole TMCs philosophy as it is.

The Goals of the Declaration of Independence Essay -- Essays Papers

The Goals of the Declaration of Independence The American Revolution was not only a battle between the British and the colonists; it was a historical movement that brought about new ways of thinking. The ideas of liberty and equality began to be seen as essential to the growth of the new nation. The separation of the American colonies from the British Empire occurred for a number of reasons. These reasons are illustrated in the Declaration of Independence. Although Thomas Jefferson wrote the document, it expressed the desire of the heart of each colonist to be free of British rule. British rule over the colonies became unbearable in the early months of 1776, making it clear to the colonists that it was time to either give in to British power or declare their independence. This idea of independence divided the colonies, but it was not long before a revolutionary committee met in Philadelphia and drew up the document that would change American history. The Declaration of Independence was written to separate the American colonies from Britain, but there were many underlying goals. It was written to state the grievances that the colonists held against the British, particularly the king. The colonists wanted a better economy, a new republican government, but perhaps most of all, they simply wanted their misery to end. This is what they set out to explain in the document. John Adams described it as â€Å"a Declaration setting forth the causes which have impelled us to this mighty revolution, and the reasons which will justify it in the sight of God and man† (Friedenwald 182). The forceful wording used in the introduction of the document was used for a reason. Jefferson writes, â€Å"When in the course of h... ... clear that government is subject to the people that it governs. The British realized that they could not write a document that would meet the demands of the colonists (Thomas 334). It was time for the colonists to write their own document. This document, the Declaration of Independence, was not only a stand against Britain; it was a stand for freedom. Works Cited Friedenwald, Herbert. The Declaration of Independence: An Interpretation and an Analysis. New York: Da Capo Press, 1974. Pleasants, Samuel A., III. The Declaration of Independence. Columbus, Ohio: Charles E. Merrill Books, 1996. Thomas, Peter D. G. Tea Party of Independence: The Third Phase of the American Revolution 1773-1776. Oxford: Clarendon Press, 1991. Wills, Garry. Inventing America: Jefferson's Declaration of Independence. Garden City, New York: Doubleday and Co., 1978.

Part Five Chapter XV

XV In Church Row, Miles Mollison came tearing out of his house in bedroom slippers and sprinted down the steep sloping pavement to the Old Vicarage on the corner. He banged on the thick oak door with his left hand, while trying to dial his wife's number with his right. ‘Yes?' said Parminder, opening the door. ‘My dad,' gasped Miles ‘†¦ another heart attack †¦ Mum's called an ambulance †¦ will you come? Please, will you come?' Parminder made a swift move back into the house, mentally seizing her doctor's bag, but checked. ‘I can't. I'm suspended from work, Miles. I can't.' ‘You're joking †¦ please †¦ the ambulance won't be here for – ‘ ‘I can't, Miles,' she said. He turned and ran away from her through the open gate. Ahead, he saw Samantha, walking up their garden path. He called to her, his voice breaking, and she turned in surprise. At first, she thought that his panic was on her account. ‘Dad †¦ collapsed †¦ there's an ambulance coming †¦ bloody Parminder Jawanda won't come †¦' ‘My God,' said Samantha. ‘Oh my God.' They dashed to the car and drove up the road, Miles in his slippers, Samantha in the clogs that had blistered her feet. ‘Miles, listen, there's a siren – it's here already †¦' But when they turned into Evertree Crescent, there was nothing there, and the siren was already gone. On a lawn a mile away, Sukhvinder Jawanda was vomiting river water beneath a willow tree, while an old lady pressed blankets around her that were already as sodden as Sukhvinder's clothes. A short distance away, the dog-walker who had dragged Sukhvinder from the river by her hair and her sweatshirt was bent over a small, limp body. Sukhvinder had thought she felt Robbie struggling in her arms, but had that been the cruel tug of the river, trying to rip him from her? She was a strong swimmer, but the Orr had dragged her under, pulled her helplessly wherever it chose. She had been swept around the bend, and it had thrown her in towards land, and she had managed a scream, and seen the man with his dog, running towards her along the bank †¦ ‘No good,' said the man, who had worked on Robbie's little body for twenty minutes. ‘He's gone.' Sukhvinder wailed, and slumped to the cold wet ground, shaking furiously as the sound of the siren reached them, too late. Back in Evertree Crescent, the paramedics were having enormous difficulty getting Howard onto the stretcher; Miles and Samantha had to help. ‘We'll follow in the car, you go with Dad,' Miles shouted at Shirley, who seemed bewildered, and unwilling to get into the ambulance. Maureen, who had just shown her last customer out of the Copper Kettle, stood on the doorstep, listening. ‘Lots of sirens,' she said over her shoulder to an exhausted Andrew, who was mopping tables. ‘Something must have happened.' And she took a deep breath, as though she hoped to taste the tang of disaster on the warm afternoon air.

Frederick Douglass Quotes on Womens Rights

Frederick Douglass Quotes on Womens Rights Frederick Douglass was an American abolitionist and former slave, and one of the most famous 19th-century orators and lecturers. He was present at the Seneca Falls Womens Rights Convention of 1848 and advocated for womens rights along with abolition and the rights of African Americans. Douglass last speech was to the National Council of Women in 1895; he died of a heart attack suffered the evening of the speech. Selected Frederick Douglass Quotations [Masthead of his newspaper, North Star, founded 1847] Right is of no sex - Truth is of no color - God is the Father of us all, and we are all Brethren. When the true history of the antislavery cause shall be written, women will occupy a large space in its pages, for the cause of the slave has been peculiarly womans cause. [Life and Times of Frederick Douglass,1881] Observing womans agency, devotion and efficiency in pleading the cause of the slave, gratitude for this high service early moved me to give favorable attention to the subject of what is called womans rights and caused me to be denominated a womans rights man. I am glad to say I have never been ashamed to be thus designated. [Life and Times of Frederick Douglass,1881] [A] woman should have every honorable motive to exertion which is enjoyed by man, to the full extent of her capacities and endowments. The case is too plain for argument. Nature has given woman the same powers, and subjected her to the same earth, breathes the same air, subsists on the same food, physical, moral, mental and spiritual. She has, therefore, an equal right with man, in all efforts to obtain and maintain a perfect existence. Woman should have justice as well as praise, and if she is to dispense with either, she can better afford to part with the latter than the former. Woman, however, like the colored man, will never be taken by her brother and lifted to a position. What she desires, she must fight for. We hold woman to be justly entitled to all we claim for man. We go farther, and express our conviction that all political rights which it is expedient for man to exercise, it is equally so for women. [At the 1848 Womens Rights Convention at Seneca Falls, according to Stanton et al in [History of Woman Suffrage] A discussion of the rights of animals would be regarded with far more complacency by many of what are called the wise and the good of our land, than would be a discussion of the rights of woman. [From an 1848 article in the North Star about the Seneca Falls Womens Rights Convention and its reception by the general public] Should the females of New York be placed on a level of equality with males before the law? If so, let us petition for this impartial justice for women. In order to insure this equal justice should the females of New York, like the males, have a voice in appointing the law makers and the law administrators? If so, let us petition for Womans Right to Suffrage. [1853] On putting a priority, after the Civil War, on votes for African Americans males before women in general] When women, because they are women, are dragged from their homes and hung upon lampposts; when their children are torn from their arms and their brains dashed upon the pavement;... then they will have the urgency to obtain the ballot. When I ran away from slavery, it was for myself; when I advocated emancipation, it was for my people; but when I stood up for the rights of women, self was out of the question, and I found a little nobility in the act. [About Harriet Tubman] Much that you have done would seem improbable to those who do not know you as I know you. Quote collection assembled by Jone Johnson Lewis.

Like Water For Chocolate by Laura Esquivel - Magic Realism in Chapter 1.

Like Water For Chocolate by Laura Esquivel - Magic Realism in Chapter 1. Note: This essay is based on the first three paragraphs of the novel.The style Esquivel uses to begin this novel can be seen throughout the whole novel, on the very beginning of each chapter. She begins by telling us about food and slowly puts this food into the story to then continue writing about the actual story.Another style the writer uses is the one of communicating and relating to the reader; for example when she writes, "which is so annoying!" and "I don't know whether that's ever happened to you". This particular style makes the reader identify with the writer, creating a sort of relationship between the writer and the reader.The second paragraph begins with Esquivel saying that Tita used to "cry and cry" over onions. Nobody really 'cries' with onions, you just get tears in your eyes. I think she uses this hyperbole to somehow compliment and prepare us for the magic realism that is to come.English: Commemorative plaque for Gabriel Garcà ­a ...Magic realism is something we c an see in the novel from the very beginning to end; we can especially see it in these first paragraphs. The very first sign of magic realism is when Esquivel tells us that Tita's "sobs were so loud that even Nacha, the cook, who was half-deaf, could hear them easily." This is a perfect example of magic realism, where something so impossible and so exaggerated is talked about and taken as if it were perfectly normal.The magic realism continues when we are told that "her wailing got so violent that is brought on an early labour". This, besides because it's unreal, strikes me because it doesn't seem very logical. Why would she want to exit the protection of her mother's womb and enter the world? This would only expose her even more...

Sun Rise Foods Case Study Example | Topics and Well Written Essays - 4500 words

Sun Rise Foods - Case Study Example The company produces snack products, pies , pastries and sandwiches. These products are then supplied by the company to leading retailers under the retailer's brand but it also sells to pubs, cafes and catering supply companies under its own brand name. It uses local suppliers for its food products where ever it is possible to do so. The main focus of the case study is on the customer service department of the company. The job of a customer service officer in the company is to answer enquires about the food products of the company, ingredients being used in the food products and the quality issues which customers might have faced regarding the food products. Recently management has been highly concerned about the quality of customer service that is being provided to customers and has shifted its focus to achieving high customer satisfaction. The manager has also brought about new performance resolution program which focuses on quality, speed, dependability, flexibility and cost as the method of ensuring that customers are satisfied with the response achieved from the customer service officers of the company. Six months have passed since the new control model was floated by the company. However there has not been sufficient increase in performance on the 5 parameters of customer service which the management wanted improved upon. However it has led to employees being dissatisfied with the management and a oppressive management style emerging in the organization. The company's CEO has grand expansion plans for the company. He wants to expand the company's reach in to the European markets; particularly Holland and Scotland. He also wants to concentrate on premier range of products which will provide him greater margin and thus increase the profits of the company. However consumers of premier products are very quality conscious and want good quality products as well as high quality customer service for the price they are paying. There is thus a gap between the strategic mission of the company's CEO and the functional aspects of the company. This case deals with the problems that are being faced by Sunrise foods and tries to provide reasonable solutions to the above problems. Literature Review Operations management was confined only to the management of processes of products till 1980s.It was primarily because of the reason that operations management has grown from the concept of factory management. It was only in 1980s when the

How Inflation Affected Ford Motor During the 2007-2009 Recession Essay

How Inflation Affected Ford Motor During the 2007-2009 Recession - Essay Example The damans of the machinery from FORD MOTOR decreases and hence the company cannot sustain a large number of workers. The table below shows how the recession affected the employment in FORD MOTOR and other companies in America. As a result of inflation and reduced purchasing power, the entire income raised by households is spent on necessities. As such, there is little disposable income to invest in shares. This is seen when the number of outstanding shares of the FORD MOTOR gradually increased as a result of decreased demand during the recession as shown in the table below: When real income falls below potential income due to a recession, FORD MOTOR laid-off workers, so the unemployment rate goes up and hence households earn less income. The cyclical unemployment rate increases during recessions as FORD MOTOR could not raise sufficient revenue to sustain a large number of workers.