Category: Business Content

Business Content!

Business Content, Opportunity, and Small Business Ideas, Businesses can privately own, not-for-profit or state-own. An example of an Online eCommerce industry is Google Searching Web and also Facebook Social Site.

While a mom-and-pop catering profession is a private enterprise. Every industry requires some form of investment and enough customers to whom its output can sale on a consistent basis in order to make a profit. An organization or economic system where goods and services stand exchanged for one another or for money.

A business (also known as an enterprise, a company, or a firm) is an organizational entity and legal entity made up of an association of people, be they natural, legal, or a mixture of both who share a common purpose and unite in order to focus.

Their various talents and organize, their collectively available skills or resources to achieve. Specific declared goals are involved in the provision of goods and services to consumers. A profession can also describe as an organization that provides goods and services for human needs.

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  • A case study of CPA audit failures in listed companies

    A case study of CPA audit failures in listed companies

    Review of the financial fraud case of Wanfu Biotechnology: A case study of CPA audit failures in listed companies – The main business of Wanfu Shengke (Hunan) Agricultural Development Co., Ltd. is the research and development, production, and sales of rice intensive processing products. Discussion on Impact of Big Data Analysis on CPA Audit.

    Here are the articles to explain, Discussion on A case study of CPA audit failures in listed companies!

    The company stood successfully listed on the Growth Enterprise Market in 2011. But it stood exposed to a financial fraud scandal in just one year. In 2012, when the CSRC inspected the company. It found that the prepaid account balance in the company’s financial statement data was very high. Which stood suspected financial fraud. Therefore, the CSRC decided to file a case for inspection in September, and the exchange suspends trading of the company’s stock for one month. Later, Wanfu Shengke admitted to financial fraud and temporarily suspended trading for the second time on May 16, 2013.

    Analysis of the fraudulent methods of Wanfu Biotechnology

    “One-stop” fraud mode, strong systematic

    Wanfu Shengke made virtual purchases, production, and sales, and forged corresponding credentials. The non-real-money fraud mode adopts by the post-listing financial fraud. A huge amount of prepaid accounts existed fabricated. The “one-stop” fraud process is to first transfer the funds in one’s account to scattered personal accounts using prepayment, which is ostensibly the prepayment for the purchase of grain, and then the fictitious income, and pass the money in these personal accounts through the company. The sales revenue stands transferred back to the company’s account. And the free funds complete the extracorporeal circulation to achieve the purpose of inflating sales revenue and increasing profits. A series of pipelined frauds are enough to reflect its systematic fraud.

    Fictitious cash flow, strong concealment

    Its free funds change ways in cardiopulmonary bypass. It stands shown as a prepayment of a large amount of money. Which stands divided into several pieces of funds when the payment stands returned to avoid the attention of the auditors. At the same time, to avoid inconsistency between personal and corporate accounts, Wanfu Biotechnology also took the risk of smuggling the business seals of several banks and forging bank receipts. Investigators also spent a lot of time checking bank receipts and found fake bank receipts. This shows that the fraud exists hidden and realistic, and it is relatively difficult to find the problem directly.

    Adopting the cost backward calculation system, the overall balance of the financial statements

    According to the principle of income and cost ratio, Wanfu Biotechnology adopts the cost-back calculation system. The financial staff reversely calculates the company’s cost according to the fictitious income to achieve a balance between production and sales. Not only that, many of Wanfu Biotechnology’s businesses are true and false. True numbers also have false numbers. And based solely on the financial statements calculated backward. It is impossible to see the tricks and find out the problem of fraud.

    Reasons and faults in the case study of CPA audit failures

    In addition to Wanfu Shengke’s fraudulent methods, certified public accountants also have many mistakes in the audit business. Such as the following:

    The analysis program is not in place

    First of all, as a rice processing enterprise. Wanfu Biotechnology has an abnormally high gross profit margin and low inventory turnover rate. In the analysis of the upstream and downstream industry chains. It can be found that the upstream purchase price increases. While the downstream product sales price decreases. , the gross profit margin is very stable strangely.

    Sponsors and accountants may fail to find abnormal gross profit margins. And can easily conclude that the company’s business is normal and gross profit margins are no problem; not only that. Auditors also did not maintain proper professional prudence for the abnormally high prepaid accounts and gave due consideration. Some are concerned, see through the lies of their raw material supply, and conduct further audits on the above anomalies. Thereby identifying and assessing the risk of material misstatement.

    Lack of confirmation and supervision procedures

    Auditors must implement corresponding procedures based on the principle of relevance, clarify work requirements, and ensure the quality of practice. However, later investigations found that Zhonglei and its certified public accountants did not make any judgments about the bank deposits and account receivable of Wanfu Biotechnology at the end of 2008 and 2009.

    Correspondence to the balance of the payment was carried out, and the corresponding alternative audit procedures were not implemented. Due to the lack of bank deposit confirmation and accounts receivable confirmation procedures, the certified public accountants contacted by Zhonglei failed to detect Wanfu Shengke’s fraud and completed the fact of fictitious income through the extracorporeal circulation of its funds.

    Even in the implementation of the confirmation procedure. The firm did not perform well and did not control the implementation process of the confirmation. Some of the replies even had the signature and seal of the person who was not asked to inquire about the letter. The above-mentioned procedural defects and carelessness were the important reasons for the failure of the audit.

    There is no “ground gas”, and the verification of the bank’s running water is ignored

    The certified public accountant failed to start with the details, especially the original documents. Such as bank receipts and other original documents to find the issuer’s financial abnormality. Many companies’ fraudulent methods are not flawless. It was the auditors who were careless, ignored some details, and passed over the subtleties. The bank balance deposits and bank receipts with high authenticity were passed over, allowing them to forge.

    Thoughts and Suggestions for the case study of CPA audit failures

    Design, implement, and maintain necessary internal controls

    The realization of the “one-stop” fraud reflects the excessive concentration of power in Chinese enterprises. Gong Yongfu and his wife Yang Ronghua hold 80.38% of Wanfu Biotechnology, and the equity is highly concentrated. It is like a mom-and-pop shop and lacks perfect internal control. Defects in the company’s governance structure are a major driving force behind the realization of Wanfu Shengke’s financial fraud. Therefore, enterprises should design and implement necessary internal control, strengthen corporate governance, and change the situation of excessive concentration of power.

    Certified public accountants should abide by and strengthen professional ethics

    As far as auditing business is concerned, a certified public accountant must be independent of the audited entity and be in the public interest. A certified public accountant with good professional ethics can abide by professional ethics requirements, maintain corresponding professional doubts, and reasonably use professional judgments.

    In Wanfu Shengke’s audit, the firm’s upstream and downstream verification found signs of false transactions, but did not conduct further audits, but issued an unqualified opinion, which is obviously against professional ethics. Secondly, auditors should not blindly listen to the information provided by the audited enterprises but should conduct audits in strict accordance with the procedures and collect evidence from different information channels, to effectively prevent and reduce the risks brought by the audit.

    Strengthen supervision and management of intermediary agencies and local governments

    Because intermediaries are subject to the business entrusting party, to continue to receive high remuneration from the entrusting party, many intermediary agencies have lost their independence, and illegal operations have contributed to financial fraud and harmed the interests of investors and the public. Therefore, the China Securities Regulatory Commission should improve relevant laws and regulations, introduce and improve the corresponding civil compensation system, clarify rights and responsibilities, and increase the cost of violations.

    All sectors of society should also work with relevant government departments to build a reputation mechanism for intermediaries. At the same time, overcome the local government’s use of the number and “performance” of locally listed companies as its “performance”, and increase the punishment of government officials for illegal “green light” behaviors of listed companies.

    A case study of CPA audit failures in listed companies Image
    A case study of CPA audit failures in listed companies; Photo by Chris Ensminger on Unsplash.
  • Relationship between Enterprise Culture and Management

    Relationship between Enterprise Culture and Management

    What is the Relationship between Enterprise Culture and Management? The corporate culture has a distinct epoch. To adapt to the development and needs of the economy, enterprises will constantly change their ways and methods. Similarly, the enterprise culture is also synchronized with corporate development, constantly changing and advancing with the times. It is the accumulation and performance of a specific historical period.

    Here are the articles to explain, the Relationship between Enterprise Culture and Enterprise Management!

    Each different development stage will form a unique cultural imprint of the enterprise. Which will continue to precipitate with time, and gradually accumulate into the historical culture of the enterprise. Thus forming a historical enterprise culture. The goal of enterprise culture is consistent with the goal of business management, both of which are to achieve the improvement of corporate work efficiency and comprehensive benefits through better management, maximize corporate benefits, and minimize costs.

    Corporate culture and corporate goals strengthen the ability of the company in all aspects. And the pursuit of the survival and development of the company has always maintained a unified pace. Showing the pursuit of goals in both ideological and also formal aspects. Another obvious feature of corporate culture is the personality of the enterprise culture.

    Each company has its own different corporate culture. Which is a collection of ideas gradually formed by the company in its development process. The goals of the company may be the same, but the specific corporate culture must be different. Each enterprise culture is on its own Accumulated in the process of struggle and development. There is a set of unique corporate cultures formed by the enterprise itself.

    The Promoting Effect of Enterprise Culture on Enterprise Management

    The cohesion of corporate culture.

    As the spiritual core of an enterprise, corporate culture has a strong influence on the overall working atmosphere and atmosphere within the enterprise. Corporate culture can set specific goals, require the internal staff to form a common goal, unite the internal staff tightly, play the role of adhesive, and form a unity within the company through its spiritual cohesion. Positive force. Such an enterprise with a centripetal force will achieve twice the result with half the effort in work efficiency, and it will be easy to manage. The enterprise culture from the soul power has a huge role in promoting enterprise management.

    Corporate culture has a guiding role.

    Corporate culture is the core idea of ​​corporate development, the crystallization of years of experience and wisdom of corporate members, and plays an important guiding role in enterprise development strategy and development direction. The strategic guidance of corporate culture on the development direction of the company. As well as the planning and forecasting of the development trend of the company. Make the company’s thinking in the process of operation and management clearer, better decision-making, management plans, and means clear. And there are more Only with a clear direction can we work hard in one direction and avoid detours and wrong decisions. The enterprise’s management ability has been enhanced, and Likewise, the enterprise culture has contributed a lot.

    Binding of the corporate culture.

    Corporate culture is an internal and orderly behavioral awareness norm formed consciously within an enterprise, which reflects the binding ability of corporate culture. The normative requirements of enterprise culture on the thoughts and behaviors of employees within the enterprise will make the management of the enterprise more standardized and efficient, the implementation of rules and regulations within the enterprise will be stronger, and it will be more conducive to the realization of management effects. A good corporate culture has certain requirements on the quality and works attitude of the internal personnel of the enterprise. The realization of this execution effect is the scope of the responsibility of enterprise management. An important force in the realization of.

    Corporate culture has a stimulating effect.

    Corporate culture, which represents advanced and positive work thoughts and attitudes, has a strong humanistic nature, and pays great attention to the personal cultivation and work attitude of the internal personnel of the enterprise, which is a kind of spiritual support. The enterprise culture encourages and supports employees with positive and advanced ideas and working abilities through its strong spiritual power, and pays more attention to the realization of employees’ self-worth, so that employees have a spirit of striving and progress within the enterprise, and form a positive spirit within the enterprise.

    Power, so that employees within the company have a strong sense of mission and participation in the sense of honor. A positive atmosphere is an essential condition for an enterprise. It contributes to the success of enterprise management to a large extent. And also reflects the motivational effect of the spiritual force of enterprise culture on enterprise management behavior.

    The corporate culture has a wide range of influence.

    The brand image of an enterprise largely depends on the economic strength of an enterprise and the good spirit of the enterprise, that is, the enterprise culture. A company with a good cultural background will make it easy for the company to form a good brand image and market positioning in the market. Corporate culture is the collection of corporate appearance and the embodiment of corporate spirit. A large company with a good enterprise culture is easy to be in the market.

    Stand out from the competition and make it easier to expand into markets and develop new channels. Good enterprise culture is also a part of the advanced force that forms a good social culture. Which is very important and beneficial to the development of the enterprise itself. The corporate image plays a role in productivity. And the enterprise culture supports the management of the enterprise to a large extent. Expand.

    Using corporate culture to promote the development of enterprise management

    To achieve the improvement of enterprise management ability. It is also very important for the construction and improvement of enterprise culture. It is an advanced enterprise management method to comprehensively promote the improvement of enterprise management ability through advanced enterprise culture. Based on my years of experience, the following suggestions are put forward to strengthen. And use the construction of enterprise culture to improve enterprise management capabilities:

    Adhere to the people-oriented corporate culture and promote corporate management.

    To give full play to the effect of corporate culture and promote the improvement of corporate management capabilities. We must first carry out ideological innovation and construction. The people-oriented enterprise culture is an advanced guiding ideology with humanistic awareness. Always adhering to the people-oriented enterprise spirit makes the enterprise culture more profound. And paying attention to the development of employees and the realization of value will make employees more motivated and sense of belonging.

    Therefore, it is essential to deepen the humanistic awareness of corporate culture. Respecting and caring for the employees of the enterprise, having a common goal, and more orderly internal behavior. And management of the enterprise, and can comprehensively promote the construction of the enterprise culture. The strengthening of corporate culture and ideology makes the enterprise more connotative. The enterprise culture spirit is stronger, and it is more conducive to the progress of enterprise management.

    Use corporate culture to optimize the corporate structure.

    The formation of most corporate cultures is highly arbitrary and also spontaneous. Which is relatively slow, and is prone to wrong ideas and behavioral decisions during the formation process. The systematic construction of enterprise culture. The construction of corporate culture involves the cooperation of all links within the enterprise.

    Enterprises should combine their characteristics, have lofty aspirations, set up appropriate systems and plan implementation according to their development, and establish a unique management model and enterprise culture. form of dependency. Form the internal rules and regulations of the enterprise into the cultural cognition and behavioral habits of the enterprise, start with the enterprise culture, infiltrate the enterprise culture into all aspects of enterprise management, help all aspects to form good cooperation and unity, and form ideas, management concepts and The unity of specific behavior.

    With the help of the power of corporate culture. It can promote the optimization and adjustment of the organizational structure of the enterprise. Help the enterprise to form a scientific and complete enterprise structure, and also facilitate the unified management and operation of the enterprise.

    Use corporate culture to standardize corporate functional work.

    Enterprise culture can not only promote the optimization and unification of enterprise structure. But also serve as a guiding force to help enterprise management work better. The enterprise culture itself is a cultural collection with humanistic characteristics gradually formed by the behaviors and thoughts of the employees within the enterprise. Therefore, for the management of employees and functions within the enterprise, the power of corporate culture can use.

    The human resources management department conducts value inspection, job division, and job responsibilities setting when hiring personnel. The working attitude and career goals of the internal employees of the enterprise can also stand encouraged and promoted according to the humanistic thinking of the corporate culture, to realize the comprehensive promotion of the work responsibilities and work execution of the internal employees of the enterprise.

    It also evaluates and evaluates the work behavior and values ​​of the employees through the guiding ideology and evaluation standards of the enterprise culture, as a reference for employees’ contribution to the company and promotion qualifications, forming a healthy competition for employee management within the company. In short, all the behaviors and work activities of employees in the enterprise can regulate through the evaluation of corporate culture and behavioral guidance tendencies to help realize the development of enterprise management capabilities.

    The construction of innovative enterprise culture promotes the progressive nature of enterprise management.

    The consciousness of innovation is necessary for the construction of corporate culture. Only the innovation and development of corporate culture can bring advanced guiding ideology to enterprise management and make enterprise management advanced and strategic. The innovation of corporate culture should first be based on the characteristics of the enterprise itself, and then learn from the advanced enterprise culture at home and abroad to absorb and form its corporate characteristics.

    Especially in today’s economic globalization, enterprises of different nationalities have strong regional characteristics, and the corporate culture has a strong national flavor. Learn the advanced corporate culture ideas and guiding concepts of other companies and apply what you have learned to form a corporate culture that suits you, makes up for your weaknesses, and forms a better integration between corporate cultures, which is helpful for your improvement and economic globalization. step forward. Through the development of traditional enterprise culture and the introduction and innovation of new culture, the management and development of enterprises will be more internationalized, comprehensive, and advanced, to meet the requirements of future economic globalization.

    Conclusion

    The relationship between corporate culture and corporate management is mutually reinforcing. And corporate culture is of extraordinary significance to improving corporate management capabilities. The construction and development of enterprise culture is also a part of enterprise management. Therefore, strengthening the construction of enterprise culture is one of the important means to promote the enhancement of enterprise management ability. It is a very wise move to promote the enhancement of enterprise management ability through the construction of enterprise culture.

    On the road to improving enterprise management ability. We should actively use the power of enterprise culture, and adhere to the attention of humanism in enterprise culture. Use enterprise culture to promote the adjustment and optimization of enterprise structure. And also Use enterprise culture to standardize the management of enterprise functions. At the same time, there must be a positive and innovative spirit, combined with advanced and innovative corporate culture concepts to promote the formation of an advanced and scientific international management model.

    What is the Relationship between Enterprise Culture and Management Image
    What is the Relationship between Enterprise Culture and Management? Photo by Dylan Gillis on Unsplash.
  • Using Text Messages to Communicate with Employees

    Using Text Messages to Communicate with Employees

    Why should businesses need Using Text Messages to Communicate with Employees? Barack Obama announced his VP pick, Joe Biden, to nearly 3 million Americans via text messaging. With 280 million+ Americans using a mobile phone, it’s safe to say he knew the reach and the power of the medium.

    Here are the articles to explain, Why should businesses need Using Text Messages to Communicate with Employees for Lead Generation?

    So why shouldn’t your business also tap into the power of text messaging? Your sales and marketing departments could reach a sizeable market using the power of text messaging. However, this would require strong sales team collaboration with the marketing team.

    Advantages of SMS outreach

    There are two huge advantages of using text messages for sales and marketing messages:

    Real-time engagement;

    This form of communication has a high guarantee of high real-time engagement and direct access to your audience. Also, Reports say that 90% of text messages are read within three seconds of being received. Text messages have a 98% open rate, compare that to “high” email open rates of around 25 – 30%, depending on your industry.

    High Conversion;

    Reports find that those who receive marketing and sales text messages are also likely to convert. 29% of those who received the SMS responded to the message. On top of that, 47% of this group made a purchase. This is a 14% conversion rate!

    But this doesn’t mean you should immediately start blasting your entire prospect and customer database with the same blanket promotions in hopes of closing a deal. Also, This scattershot approach will drive potential business away. Moreover, text messages can also also be used addition to manage sales deals, and management software. 

    Three Tips for Effective SMS Outreach

    If you want your text campaigns to succeed, you’ve got to get personal.

    1 – Send personalized promos;

    A report from Accenture found that 75% of consumers are more likely to buy from retailers that recognize them as individuals. And this can extend to your SMS outreach efforts.

    The second point is you need to segment your contacts! Make sure your promos are targeted to segments of your list. So for instance, if you are selling dog food, it’s wise to segment your list and also send your SMS promo to those who have indicated they own a dog.

    2 – Respond quickly;

    If you want to generate smokin’ hot leads, you should respond blazing fast to any responses to your text message outreach campaigns, because studies show 1/3 – 1/2 of sales go to the first responder. Responding quickly also builds up trust and the faster your leads get answers to their questions about your promo and product, the more likely they will convert to a sale

    3 – Get Ready to Change the Channel;

    Maybe your initial contact is an SMS promo, but your lead is more comfortable chatting to your sales or customer care team through another channel. 

    Be flexible enough about this to switch to a channel that the customer feels most comfortable in. We all know this goes hand in hand with the principles of omnichannel marketing.

    One thing to keep in mind is that your database has to consent to receive text messages from you with a hard opt-in. That way you are operating your campaigns well within the bounds of strict data laws like GDPR.

    Businesses need Using Text Messages to Communicate with Employees for Lead Generation Image
    Businesses need Using Text Messages to Communicate with Employees for Lead Generation; Image by Alex Tran from Pixabay.
  • CPOE Computerized Physician Order Entry Benefits Case Study

    CPOE Computerized Physician Order Entry Benefits Case Study

    Benefits of Computerized Physician Order Entry (CPOE) with Case Study; CPOE is the process by which physicians can place patient care orders through an electronic system that informs them about different departments. They usually include pharmacy drug orders, laboratory tests for blood tests, radiological orders, and other patient instructions.

    Here are the articles to explain, What are the Benefits of Computerized Physician Order Entry (CPOE) with their Case Study?

    CPOE stands therefore often used in electronic prescribing systems that can alert physicians to potential drug-drug or drug-allergy interactions on a specific order. Phase I of the MU program emphasizes the use of CPOE and e-prescriptions, and most physicians implement these two modules – at least – even if they have not yet purchased a complete EHR. CPOE is not just a replacement for paper charts and is a complete overhaul of the complex procurement process. CPOE (computerized physician order entry) has several benefits for physicians and patients:

    • Patient tables were not inaccurate or inaccurate in the administration.
    • Reduce handwriting errors and misunderstandings when placing an order.
    • Improve patient care through clinical decision support systems.
    • Reduce order costs.
    • Comprehensive case documentation and patient history, and.
    • Improve communication between different departments, such as laboratory technicians, doctors, nurses, specialists, etc.

    Explanation;

    In the above list, perhaps the most striking is saving time and improving efficiency. Clear and legible electronic commands do not require further explanation and there is no room for interpretation. Recipients of the order should not interfere in the course of the prescriber’s work; which further increases the possibility of errors. The time required for ordering, such as receiving results from laboratories or medicines from a pharmacy, stands also significantly reduced.

    Although there are many benefits, organizations are slowly adopting CPOE systems due to the high cost of money and technology resources. Procurement systems for large hospitals can cost millions of dollars, and an in-depth analysis of organizational processes require before they can implement. Even if the systems stand already installed, employees need a lot of training and support to learn how to use the new applications.

    CPOE systems have a greater impact when integrated with other computing applications within the organization; such as EHR, practice management tools, and electronic prescribing modules. concerns and CPOE implementation. Despite these persistent problems, most healthcare providers are implementing them because of a meaningful service program.

    Benefits of Computerized Physician Order Entry (CPOE);

    CPOE has existed for decades. But in recent years, and with the growing need to digitize healthcare; CPOE has become more advanced and has increased its use by healthcare providers around the world. The best CPOE (computerized physician order entry) today can provide the following benefits: Three CPOE (computerized physician order entry) benefits;

    1. Reduce errors.
    2. Increase efficiency and.
    3. Cost savings.
    Reduce errors;

    The CPOE system saves time and ensures greater accuracy by eliminating manual data entry. This in turn increases patient safety. At least 7,000 people die each year from hospital-related drugs in the United States. Automation reduces fatal human errors. Studies suggest that CPOE has the potential to reduce errors by 13% to 99%; depending on the practical use of the technology and the level of consistency of patient data.

    The CPOE automatically records errors when medications exist ordered; because they stand already completed using a computer that matches the order of the patient’s profiles; including laboratory results, general medical history, and insurance information stored in the system to ensure the patient receives the correct prescription.

    Increased efficiency;

    Another advantage of CPOE stands for increased efficiency. By eliminating manual CPOE data entry, it streamlines the ordering process, an important feature for physicians who have little time. CPOE provides real-time access to inventory levels, pricing information, etc., so you can make informed decisions about your patients’ needs. CPOE allows providers to spend less time on paperwork and more with patients. For orders placed on computers, the CPOE ensures that no orders are lost or ambiguous due to illegible handwriting.

    Cost Reduction and savings;

    One of the key benefits of CPOE is that it reduces long-term costs for patients and healthcare providers. A large study at the University of Washington, which looked at 400 midsize providers over five years, found that each provider could save hundreds of thousands of dollars by switching from paper prescriptions to CPOE.

    The study concluded that adopting a CPOE “is an excellent investment value and a cost-effective strategy to improve drug safety.” For patients, CPOE can help them save time and money in at least two ways. First, it helps patients limit pharmacy visits due to drug orders. Finally, CPOE prevents the patient from receiving the wrong medications, which protects the patient’s health and prevents costly and lengthy hospital stays.

    Case Study Making the Problem Worse at Computerized Physician Order Entry (CPOE);

    This case study explains what went wrong at Springfield General Hospital and how technology led to more rather than fewer mistakes. This case study will also explore theories of change implementation that would have helped administrators at Springfield General solve the medication mistakes sooner rather than later.

    Lastly, how the hospital can solve the problem, and to what extent, if any, would new technology have been helpful. Keywords: change implementation, computerized physician order entry (CPOE), medication errors, adverse drug events, mutual engagement, shared diagnosis

    According to Cohn (2015), “most of us think of hospitals as places of healing, and usually, they are. But hospitals are also places where people get sick or stand injured, thanks to medical errors”. During Thanksgiving 2010, an article stood generated about the poor efforts to reduce hospital errors. A study by Grady (2010) found “that harm to patients was common and that the number of incidents did not decrease over time”. Therefore, over the years hospitals have looked for ways to avoid mistakes, however, some have made matters worse.

    What Went Wrong;

    Springfield General Hospital stood determined to use technology to correct hospital errors within their organization. The chief administrator decided that technology could help prevent medication mistakes in particular. Spector (2013) stated:

    “Prescribing errors, confusion over drugs with similar names, inadequate attention to the synergistic effects of multiple drugs and patient allergies—those and other related errors that are lumped together under the label “adverse drug event” –kill or harm more than 770,00 patients annually in the the the U.S. hospitals”.

    Because of this health care costs rose several hundred billion dollars due to adverse drug events. Ironically, the most common type of medication error is poor or illegible handwriting by the physician prescribing the drugs. To rectify these issues, Springfield General sought a computerized physician order entry (CPOE) method to solve medication errors. The Journal of the American Medical Informatics Association Processing (2013) found that “a prescription drug order through a CPOE system decreases the likelihood of error on that order by 48% (95% CI 41% to 55%)”.

    More thing;

    The hospital stood supposed to adapt to four new standards provided by the CPOE. First off all medications and treatment had to enter into the hospital’s system. Secondly, the entries stood made available to all staff as well as pharmacy staff. Third, due to the design, the system would catch all prescription errors, such as “incorrect dosages, duplicate requisitions, patient allergies, and even adverse effect impact statements of multiple medications being prescribed to a patient”. Fourth, the medical history of all patients would display along with their current clinical guidelines for treatment.

    All of these steps assured Springfield General that this system would solve all of their existing medication error problems, instead, they received some disappointing information. In actuality, the CPOE system that Springfield adopted increased adverse drug events and did not eliminate errors. There were multiple dosage errors due to the pharmacy not being aligned with the clinical guidelines. Therefore, some of the dosages that they may have been prescribed were not available in the pharmacy which caused the system to choose the available dosage.

    The system design did not take into account medications being discontinued or drugs with similar names. The synergistic effects of multiple drugs and patient allergies were inadequate. The display accessibility was limited when patients had a long history of medications resulting in multiple screens being displayed. Also, the patient records font was displaying small and hard to read at times. As well as, the patient’s name did not appear on every screen that existed associated with them. Therefore, this confused physicians when trying to assign medications and switch between screens.

    Theories of Change Implementation;

    Mutual engagement and shared diagnosis should have stood considered during the change implementation. Erickson (2016) noted, “that communication and patience are key, and both community and hospital pharmacists need to involve with the CPOE development process to improve medication safety”. From beginning to end the hospital staff and pharmacy need effective communication with one another.

    By partaking in an IT project from the beginning, pharmacy staff would be able to guarantee that their expertise helps guide the process in a way that aligns with their organization’s goals. If departments were sharing their opinions and diagnosis of the system then the view and accessibility issues would have been caught early in the testing stages as well. System administrators could have made the required adjustments.

    Solving the Problem;

    CPOE systems have unquestionably prevented errors, however, they have inadvertently caused errors as well. The key is to continue developing ways to minimize the errors unintentionally caused by the system. “For example, when designing systems, more care should take to address common problems such as brand versus generic drug names, ineffective searching in terms of filtering drug names and regimens, and confusing screen displays”, Erickson (2016) states. Another area that needs improvement is the flow of accurate and updated information from the hospital to the pharmacy.

    Springfield General’s communication with hospital pharmacists needs to improve medication errors. Pharmacists should be providing drug counseling to patients as a safety check to make sure patients are taking the correct drug and dosage. Also, another system may need to perform automatic checks. Kaushal and Bates declared, “CDSSs offer additional functions for the provider to use, such as drug interaction checks, drug allergy checks, and prompts for the provider about when to order a service for a patient”.

    To improve entering information for the wrong patients, system administrators could set up a link to verify patients before any data stands entered into their records and when prescribing medication. If the link isn’t feasible staff should force to enter specific information about the patient to access their records. In regards to accessibility, there are many things that the hospital and system admins of the CPOE system could implement to resolve that issue. A side-by-side view may be better than having screens aligned behind one another. Also, the system should allow users to customize the font and sizing according to their preferences.

    Conclusion;

    CPOE systems have great potential to be an effective solution for hospitals. They eliminate illegible handwriting, integrate electronic medical records, and enable faster data and order transmission to pharmacies as well as other areas in the hospital. Integrating with other systems, such as decision support systems, increases patient safety and improves the quality of patient care. If designed and implemented correctly, CPOE systems could reduce medical errors and ADEs experienced in the US. Organizations that adopt this method have to make sure that they are trained properly, the user interface is not poorly designed, and verification of usability is performed during design, implementation, maintenance, and modification.

    CPOE Computerized Physician Order Entry Benefits Case Study Image
    CPOE Computerized Physician Order Entry Benefits Case Study; Image by Stokpic from Pixabay.
  • Mission and Vision Statement Business Essay

    Mission and Vision Statement Business Essay

    What is the Mission Statement and Vision Statement Meaning in Business Essay? The mission reflects the exact purpose of the organization. This statement is the primary goal of the organization to reflect the company’s plans, goals, and programs. A mission statement is different from a vision statement. The vision of any organization in the future reflects a very small picture of each organization. It is usually created or set up for the organization, this is what the organization plans for the future or the future, primarily the goal of the vision is to find something.

    Here are the articles to explain, the Mission Statement and Vision Statement Meaning, Benefits, Importance, and Implementation in the Business Essay!

    Values ​​are basic principles of thinking that help us understand and predict actions at the individual or group level. Each organization’s values ​​often define and describe nature and stand behind the organization to motivate the organization on which it is built. A “code of conduct” describes the organization’s values ​​in real pictures of how you can easily access them in a running organization.

    ”According to Weyerhaeuser what a vision statement means in the introduction to the company’s statement, ”our vision” and ”our values.”

    An organization’s vision statement presents the upcoming or future desire which is valid and it should go on and never should be changed with each cycle of an organization.

    • ”According to Meridian Bancorp, our vision is meridian’s statement of core values that defines the company’s culture and the meridian way of working.”
    • “According to Stephen Covey if you don’t set your goals based upon your Mission Statement, you may be climbing the ladder of success only to realize, when you get to the top, you’re on the wrong building”

    A clear mission statement also focuses on what are the advantages which are you are offering to your patrons as well as consumers it also tells you the exact purpose of your organization.

    Benefits or Importance of Mission and Vision Statement;

    A good mission statement is like a born of success for the organization. It is very for the companies to find out the ways and also do the regular confirmation whether the company or organization is on the right way or not. A purpose of a clear mission statement for an organization is to align the people as well as merge all the individual’s activities into the group.

    It also tells the organization’s employees whether they are doing work that is important or worthwhile. A clear statement describes the importance of work to the organization. It can change the thinking for the improvement of the organization and give the ancillary customer services to their customers. Mission has the value that it gives the change in any organization from time to time.

    Normally mission statement of any organization describes the primary objectives as well as purposes. The primary function of this statement in the company is internal to evaluate the business key and company success as well as stockholders and team of leaders.

    The purpose of the vision statement is to define the company’s purpose; this statement does not measure the bottom line of the company but the vision statement measures the values of the company; as well as the values that tell the company leaders how things should exist done. This statement also communicates the aims and values of the company. The vision statement gives direction to the employees that how they can provide their best and ancillary the customers.

    Other Benefits or Importance;

    Vision and mission statement helps the company where the company wants to go; these statements are very helpful to focus that what stands and what should exist done. A mission and vision statement gives high energy to the company to attain or set the goals; these statements require a lot of time to write, and through a mission and vision statement you can easily achieve the values.

    A mission statement without a vision statement is like nothing. A mission statement defines the proper aim and activities of the company which is very important for its vision. Both statements aim to address and achieve the important and major goals of the company or organization. It is very hard without a vision and mission statement for any company to achieve its goals or aims. So these statements are the born of the companies.

    Another important benefit of the mission and vision statement is also helpful to visible companies’ strategic plans, these states have all the vital mechanisms for the future propel of any company. Both statements are very helpful for guiding and communicating in the company or organization.

    Mission and Vision Statement Communication & Adoption By The Staff;

    • The executive of any company visibly defines the mission statement to all the staff.
    • The seniority leaders of any company define the vision statement which is properly based on market review, the satisfaction of the consumer as well evaluate the capabilities of the company.,
    • The vision of the company is very simple, little, and comprehensive for all employees of the company.
    • The vision and mission statement undoubtedly and simply communicates to all employees about their jobs and performance.
    • The mission and vision statement are very helpful and guide all employees to achieve the goals.
    • When the senior leaders of the company change these statements they also tell to their employees how to achieve the goals and ancillary of customers.
    More things;
    • Many companies have different channels to communicate to the employees and through these channels, they dedicate the company’s vision and mission to their employees.
    • In some circumstances, vision and mission statements are also communicated between employees and chief executive officers.
    • These statements are also very helpful to improve the staff performance as well as give training to the staff.
    • Many companies call the meeting to all employees and tell about the vision and mission statement.
    • The staff through vision and mission statement can easily understand their job and better perform.
    • These statements are also obliging to the promotion of the staff
    • Vision and mission statements are ancillary to the staff, improve the work, and are very helpful for staff.

    Implementation of Mission and Vision Statement on Different Programs;

    Corporate Strategy;

    The corporate strategy starts through vision and Mission statement can b accessed by culture, core values, and the core values on which it competes.

    The mission statement tells where the stands of the corporation are in present; and, the purpose of the vision statement is it shows where will be the corporation in the future. Does a mission statement describe what we want to do as well as who we are?

    It states the capabilities, future targeted customers, and future lineup. Long-term decisions stand described in strategic visions. It tells about the corporation’s future planning i.e. the technology prospect and targeted location. To depart yourself from competitors, mission and strategies play a crucial role and define its mission for the future.

    Strategic and Investment Plans;

    It stands accepted worldwide vision and mission statement are very effective and vital for the strategic planning of any company.

    The strategic plans and mission statement of the company to check and determine the unity themes; and also improved the response which comes from customers and shared vision; and passes this information to the company executives are responsible to implement this vision for achieving their goals.

    This is very helpful to the company’s strategic vision and investment to promote the value of the company or business. Another advantage of this is very suitable for the decision-making of the company purchase; as well as this exercise you can easily implement on the new management of the company. This exercise is also ancillary to the new management and gives them time; as well as a good opportunity to understand the investment values and the cost-saving.

    This will help to evaluate the company’s effectiveness and efficiency. Vision and mission statements state the company or business how you invest and after investing what you will get. This statement is also very helpful to create the plans of investment and strategy of the company. The company can achieve its goals and aims with the investment. These statements are the born of every plan. Such kinds of statements give you core ideas and the purpose of your business and company.

    Tesco Example;

    Now a day Tesco is going to develop economically new towns in the United Kingdom. So the vision of Tesco in investment and strategic plan is to generate new supermarkets, new housing, cycle tracks, visitor center, etc, with the help of this vision Tesco can easily achieve its goals and aims, which will increase the Tesco its profit, so vision is very helpful for investment planning and strategic planning as we saw in the Tesco vision.

    Constant Change;

    The constant change does not occur in the vision and mission statement for many years. It changes in such circumstances when significant change seems to be essential. The new vision and mission statements were designed by the company executives. If you are thinking to change the vision and mission statement of your company first you should have to change your planning because the vision and mission statement varies or relies on your company’s planning. The vision and mission statement arises in the meeting of management when they are discussing the strategic planning of the company.

    Such sort of statements shows the whole position of the company and where the heading of the company is. Vision and mission statements also describe company matters and what the company is acting as a control center and what does not do to the company. The mission and vision of the company are constantly focused on all the managers as well as it shows the direction and holds or maintains when in some circumstances the individual objects are changed. So constant change in vision and mission statement is a bit tuff.

    Example Constant Change In British Airways;

    In 1997 British Airways launched a new mission statement after a brief discussion with the employees, the management of British airways replaced an existing mission statement, an existing statement which is introduced in 1995 to accumulate privatization. Many employees of the company were trained and doing their exact jobs. The new mission statement of British airways quotes the basic challenge which the company is facing. They added its new mission statement given below.

    • Ancillary of customers.
    • Consumers desires.
    • The climate of the global economy.
    • Competition challenge.
    • We shall say it is the change of mission, strategic plans, and vision. The purpose is to make a platform that leads to the future of the company.

    The merger of vision and mission statement is very important for those large companies in which staff and managers have the right to make decisions themselves, without any permission from seniority management or the headquarters of the company. If every member of the staff knows what and where is the purpose of our company, therefore the company can easily achieve its goals and objectives.

    These statements help to create the aims, goals, and targets as well as very important to constraining the company’s short-term plans and setting the budgetary trade-off to gain the company’s long terms goals.

    Conclusion;

    As the above discussion of vision and mission statement, I conclude that vision and mission statement is very essential for the companies, without vision and mission statement companies have not the goals if there is no goal, how companies can survive or formulate. As we saw vision and mission statement is a born from every planning and strategy of the company. These statements also motivate the staff and guide them about their jobs. However, we can say that vision and mission statement are the base of the companies. Such kind of statements is very important and very helpful to evaluate the companies or organizational values. However, we can judge that without a mission and vision statement companies are flat or prone.

    What is the Mission Statement and Vision Statement Meaning in Business Essay Image
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  • Aged Care and Theories of Ageing with few Case Study

    Aged Care and Theories of Ageing with few Case Study

    What is aged care? the Theories of Ageing also looking a case study of aged care; For privacy through this case study, the writer will refer to the patient as Mrs. A. This case study will investigate the health condition of Mrs. A. Mrs. A is 82 years old and has lived with Parkinson’s Disease for the last 20 years. Mrs. A is currently taking Levodopa, Atanol, and Lepitol. Mrs. A’s symptoms have gotten progressively worse as she has aged. Things that she used to be able to do are now a lot more difficult for her, even simple things like getting out of chairs, walking without shuffling her feet, and keeping her balance.

    Here are the articles to explain, What is aged care? the Theories of Ageing with few Case Study!

    This aged care case study will research different theories of aging; and how these relate to the health condition that Mrs. A is suffering from. Models of care will discuss as well as the best model of care to suit Mrs. A and why this model of care would be the most suitable option for Mrs. A. This case study will also look at a management plan for Mrs. A to improve her quality of life through different interventions and strategies. This will include set review times to make sure Mrs. A is getting the most out of the management plan.

    Finally, this study will research the legal and ethical issues that could impact Mrs. A. Parkinson’s is the second most common neurodegenerative disorder, characterized by both motor and non-motor symptoms. The four main motor symptoms of Parkinson’s disease are Shaking or tremors, slowness of movement (Bradykinesia), stiffness or rigidity of the arms, legs, and trunk, and trouble with balance (postural instability).

    CASE STUDY – MRS A

    For this aged care case study, we will be researching the condition of an 82-Year-old woman with a diagnosis of Parkinson’s disease. Mrs. A stood diagnosed with Parkinson’s disease in her early 60s. She currently takes Levodopa, Atanol, and Lepitol. Does she live with her husband who is? years old and in generally good health. Mrs. A is the one who prepares the meals and does the housework at home. But as the disease and symptoms have progressed, it is getting increasingly difficult for Mrs.

    A to continue these activities without help from her husband. She had been pretty healthy before her diagnosis, she was born in England and moved to Australia when she was? years old. She did suffer from pneumonia twice and had a fall; while crossing a road before her diagnosis but other than that she was a healthy woman. The diagnosis came as a big shock to Mrs. A and she went through a range of emotions, including denial. Unfortunately the denial, she was suffering from this delayed her in seeking the help and medication she needed, which means Mrs.

    More things;

    A didn’t start any medical intervention as soon as she stood diagnosed. Mrs. A ended up starting medical intervention due to her daughter taking her to appropriate appointments and convincing her that this is what she needed to help Mrs. A maintain her quality of life. Mrs. A currently takes Levodopa 4 times a day to treat the symptoms of Parkinson’s and has been taking this for the last 20 years. Mrs. A states that the Levodopa still works well for her symptoms. Despite taking her medications, Mrs.

    A still currently suffers from a range of symptoms such as tremors, rigidness, stiffness, difficulty walking, getting up and down, speaking, memory, tiredness, and lethargy. These conditions have progressed as her age progressed. Mrs. A develops risk factors for a lot of other conditions due to her Parkinson’s symptoms such as falling, choking, aspiration, etc. Mrs. A needs to be able to still enjoy and have a good quality of life. This will require a management plan and review of the plan to monitor its effectiveness.

    THEORIES OF AGING:

    Parkinson’s disease is an age-related disease due to an age-associated increase in oxidative damage to the brain. Dopaminergic neurons decrease at a rate of 5-10% every ten years in normal aging; yet, the rate and intensity of neuronal decrease in patients with Parkinson’s disease are a lot more than that of just aging and aged care. Most theories of aging can fall into two different categories, programmed and damage/error theories.

    The programmed theory implies that aging is already genetically programmed to occur with time and slowly deteriorates until death whereas the damage theory is the idea that external or environmental forces gradually damage cells and organs, leading to aging and death. Individual damage theories focus on how slow and continuous damage to cells will eventually lead to cellular dysfunction.

    Damage theories do not rely on a pre-determined timeline for aging and infer that we could increase our lifespan; if we take steps to protect our bodies from cellular damage. Free radicals stand also associated with aging, and aged care. “The free radical theory of aging states that we age because of free radical damage over time”.

    IMPLICATIONS OF THESE THEORIES ON THE HEALTH OF MRS A:

    Due to the implications of Parkinson’s disease, this disease relates to the programmed theory of aging; because there are no known external environmental factors that cause Parkinson’s disease. It is unknown what causes Parkinson’s disease but what is known is that the body internally stops producing dopamine causing many of the symptoms of Parkinson’s disease.

    Free radicals are fast-growing cells in the body that are associated with human diseases, including cancer, atherosclerosis, Alzheimer’s disease, Parkinson’s disease, and many others. Things that can produce free radicals are found in the food we eat, the medicines we take, the air we breathe, and the water we drink. This part of Parkinson’s disease seems to back up the Damage theory. If free radicals overwhelm the body’s ability to regulate them, a condition known as oxidative stress occurs. Free radicals negatively alter lipids, proteins, and DNA and trigger several human diseases including Parkinson’s disease.

    Free radicals are created either from normal essential metabolic processes in the human body which support the Programmed Theory of aging or from external sources such as exposure to X-rays, ozone, cigarette smoking, air pollutants, and industrial chemicals which supports the damaged theory of aging, and aged care. The symptoms of Parkinson’s Disease are only detected once 50% of the nigral neurons and 80% of the striatal dopamine are already permanently lost. There is currently still no answer to the ongoing question, what specific age-related factors predispose certain individuals to develop this common neurodegenerative disease?

    MODEL OF CARE:

    There are three main models of care, Consumer-directed care which is a financial model of care, and two clinical models of care which are the Eden Alternative model and the Person-centered care model. For Mrs. A, the person-centered care model would be most beneficial as this model of care involves treating not the physical care of the patient alone but the whole person, including their social, cultural, and individual identity requirements. This would be most appropriate for Mrs.

    As her health condition, Parkinson’s disease affects more than just the physical body of the patient, it also affects the way the person thinks about themselves, the way they think about life, and it causes depression in 90% of people with this condition and also affects the friends, family and loved ones of the person with the illness. Patient-centered care is important in making Mrs. A feel like she is not alone and she still has control of her life and what happens to her. This model of care will be able to cater to Mrs.

    A helps to make decisions together with the medical team and not just have decisions made without any input from her. This makes the patient feel heard, in control, and respected and takes away a little bit of the isolation associated with this disease. Other symptoms aren’t as easily seen as the physical ones. A lot of people feel embarrassed about their disease and therefore will not talk about their condition and attempt to hide it. Mrs. A did this for a while before her diagnosis by holding the arm that was shaking due to embarrassment, a lack of acceptance in the community, and a lack of understanding about her condition.

    MANAGEMENT PLAN FOR MRS A:

    Mrs. A is currently taking Levodova 4 times a day for her Parkinson’s she feels like this is still going well and states that she does not feel like it is wearing off. Mrs. A would benefit from a medication review from her doctor to make sure she is getting the most out of her medication plan. Mrs. A and her husband go for walks every day to keep themselves active, which is excellent to help Mrs. A’s condition. Mrs. A should also refer to a physiotherapist to learn more specific exercises that relate to improving her condition and minimizing symptoms.

    The physio will also be able to aid Mrs. A with gait and balance training protocol with strength training, as this is effective in reducing falls up to 6 months after the intervention. Strength training is a fairly new intervention for Parkinson’s sufferers but recent studies have shown a long-term reduction in motor symptoms based on progressive resistance training twice every week.

    Part 01;

    There is increasing evidence that the effective care of patients with Parkinson’s disease should involve a multidisciplinary team of health professionals, including the neurologist, Parkinson’s disease nurse specialist, physiotherapist, occupational therapist, speech and language therapist, dietician, clinical psychologist, and social worker Mrs. A has not been offered any of these services yet. Mrs. A must get referrals to all-important services so stands to ensure she is living the best possible quality of life.

    This includes a referral to a psychologist as treatment of behavioral symptoms in Parkinson’s disease is just as important to treat as it can greatly improve a patient’s overall function and quality of life. A referral to a physiotherapist to help improve gait, and balance, improve aerobic activity, and movement initiation, and increase independence. Occupational therapist to give help on maintaining activities of daily living, maintaining friendships and family relationships, encouraging self-care, assessing any safety concerns, cognitive assessments, and arranging any appropriate interventions.

    Speech and language therapist to improve Mrs. A’s loudness and speech, and ensure any methods of communication offered as the disease progresses. Mrs. A could also benefit from seeing a dietician to review her meals and if she may be having any issues when eating or drinking. Mrs. A will also need a referral to a continence advisor as she has recently disclosed that she is having trouble making it to the toilet. She stands very embarrassed about this and does not like to discuss it.

    Part 02;

    Encourage Mrs. A to take warm baths and massage the muscle for stiffness and muscle weakness. Teach Mrs. A to use facial exercises and breathing methods to correct the words and volume when she is speaking, this is to increase her potential to communicate effectively due to the decline in speech and facial muscle stiffness. Educate Mrs. A on deep breaths before speaking to increase the volume and number of words in sentences of each breath. The National Institute for Health and Clinical Excellence suggests a specialist review every 6-12 months.

    LEGAL AND ETHICAL ISSUES THAT NEED TO CONSIDER FOR MRS A:

    Reported difficult ethical tensions between safety and autonomy. The balance of safety and autonomy, conceptualizing home care as maintaining independence rather than accepting dependence.

    Aged Care and Theories of Ageing with few Case Study Image
    Aged Care and Theories of Ageing with few Case Study; Image by truthseeker08 from Pixabay.
  • Volkswagen and Porsche Case Study for Corporate Merger PDF

    Volkswagen and Porsche Case Study for Corporate Merger PDF

    The automobile company Volkswagen and Porsche Case Study with PDF for Corporate Merger; The German Dr. Ing. H. C. F. Porsche (Porsche) automobile manufacturer specializes in sports cars and a new line of all-terrain vehicles. In the mid-2000s, Porsche stood recognized as a leading global brand for its consistent quality and cultural icon status with models including the 911, the Boxster, and the Cayenne.

    Here are the articles to explain, the automobile company Volkswagen and Porsche Case Study for Corporate Merger PDF!

    The company achieved strong financial performance cementing Porsche’s market dominance. Porsche’s operating profit increased from 1,204 million in 2002 to 1,832 million in 2006, representing a growth rate of 52.1%. The net profit of the company also increased to 1,368 million in 2006, an increase of 74.8% over 2005. One of the central elements of Porsche’s business model is its low manufacturing depth; which means that it does not have huge centralized production plants. Many building processes stand outsourced while Porsche concentrates on its core competencies of development, engine production, quality control, and sale of vehicles. This allows Porsche to keep trim and agile in the luxury market. Volkswagen AG is a manufacturer of passenger and commercial vehicles.

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    The group markets its vehicles under the following brands; Volkswagen passenger cars, Audi, Skoda, SEAT, Bentley, Scania, and Volkswagen commercial vehicles. A strong brand portfolio enables Volkswagen to provide a competitive advantage over its peers. Leading market position enhanced the brand image of the group and held investors’ confidence. In 2007, the group increased the number of vehicles delivered to customers to 6.2 million, corresponding to a 9.8% share of the world passenger car market. However, rising raw material prices threaten the margins of the group by increasing its operating costs.

    What are the reasons Porsche takeover Volkswagen?

    The Underlying Reasons Why Porsche Attempted to Takeover Volkswagen;

    With the protection of Germany’s 1960 “VW Law” that long shielded Volkswagen from takeover, no matter how poorly it performed. VW’s 174,000 workers exerted a huge influence over management through their Labor Union; which focused on protecting jobs at the expense of efficiency. The German state, with its 20% share, typically sided with labor over the years; because they were reluctant to restructure VW’s inefficient operations and eliminate jobs.

    With governing bodies that cared more for jobs than future growth, VW became increasingly inefficient and entered the 21st century with a bloated workforce, the highest manufacturing costs, and the shortest workweek [32 hours] in the global automotive industry. Evidence of just how unruly VW had become erupted in a 2005 scandal when evidence stood revealed millions of dollars in funds granted by management to bribe union leaders for their support.

    The funds stood used to pay for pleasure trips, parties, and others. After being carried for many news cycles, several managers have pleaded guilty to paying off labor officials and have been fined. In the mid-2000s, VW was palpably vulnerable, but why a takeover bid? Why would the world’s most profitable automaker sink billions into mass-market VW with its debilitating cost structure, strong unions, and weak profits?

    A closer look reveals that Porsche moved to take VW for their technology development and keep access to a production ally. In effect, though Porsche was financially stronger, it needed VW more than VW needed Porsche. Only about 20% of what makes a Porsche a Porsche-largely the engine and transmission stands made by Porsche workers. The rest exists outsourced, mainly to VW. Porsche co-developed the Cayenne with Volkswagen, sharing parts, production, and development costs.

    More reasons;

    The joint development and outsourced production help fuel Porsche’s profits by keeping its fixed costs and capital investments low. In addition, the planned integration of Porsche into Volkswagen and the associated, closer cooperation will realize significant synergies on both the income and the cost side. Both companies could focus on finding synergies for such items as electronic architectures and engineering work on future vehicle circuitry platforms and common parts such as air conditioning.

    For Volkswagen, the merger benefits are clear — protection against a hostile takeover. It may also get a lift from Porsche’s image and well-regarded management. VW needs help. With profits of 484 million on sales of 55.4 billion in the first half of calendar 2005, VW’s profit margin is less than 1%. Volkswagen has 15 times the annual revenue of Porsche-but Porsche’s profit margins are seven times bigger than VW’s.

    VW was a gold mine for Porsche as they envisioned the future demand for products designed by Porsche but co-produced by Volkswagen. Porsche focused on a particular type of luxury product and VW ran stables of brands producing across many segments. With the threat of materials costs shooting through the roof; Porsche was looking for ways to turn threats into opportunities and garner some serious market power. VW was a goldmine. The only thing that Porsche would have to do was dig day and night.

    Strategy to Gain Control;

    Porsche utilized pure financial leverage combined with speculation to attempt to gain control over VW. All of these actions existed not done in complete secrecy; but, the information fed to the public was a time in a very strategic way. On the open market Porsche accumulated shares in VW and accompanied; these actions with simple and believable statements that they were merely trying to secure VW as a partner company in the development of different platforms of cars.

    Porsche made statements to the effect that they existed not interested in owning VW; but, merely had a vested interest in the continued cooperation of the two companies for joint ventures. Simultaneously and not so publicly Porsche bought options on VW stock by paying a fee to be able to purchase VW shares at a given price sometime in the future. These types of transactions are extremely common in financial markets; however, the extent to which Porsche did this was tremendous.

    In the end, they had accumulated these options to such an extent that they had the right to purchase nearly every free share on the market. Before this information was public, it had little effect on the share prices. However, when Porsche went public with this information, market forces went to work. The financial institutions that had sold these options to Porsche had done so “short” meaning they did not own the shares.

    More control;

    When these institutions learned of the situation they realized that Porsche would exercise these options to attain 75% of VW; and, they would force to buy VE shares on the open market and sell them to Porsche at the lower agreed price. This resulted in the institutions rushing to purchase all available shares to minimize their losses when Porsche exercised the options. The accumulation of the options and the resulting profits from exercising; these options certainly emboldened Porsche to press for an ever-larger stake in VW.

    With stable financing in place, Porsche could have essentially bought 75% of VW; with the government owning 20%, and only 5% of the share would be public. Stable financing and overall economic conditions that existed during the final push for shares severely stressed the financial capabilities of Porsche. As a result, the hostile takeover attempt has morphed into a merger offer. Additionally, the legal battle with the state of Lower Saxony continues. The VW law continues to be an obstacle to the voting right of all other shareholders.

    Impact of the Attempted Take-Over on Stock Prices;

    The most striking result comes from a comparison of the two company’s stock prices at the beginning of this period and the ending relationship in stock value on a percentage basis. The most divergent area in October of 2006 was the direct result of the secretive accumulation of options on VW stock by Porsche. As stated above the announcement by Porsche that essentially has claims to all the remaining VW shares on the open market sent investment banks scrambling.

    These investment banks were the ones that were short VW shares; and, essentially could have the options put at them resulting in huge losses. The attempt to cover all the outstanding options drove the share price of VW through the proverbial roof. As it stands on June 25, 2010, the share price of Porsche is 36.04$ as compared to a share price of 94.04$ on September 3, 2008, the earliest date available on Yahoo Finance.

    This represents a 62% decline in the value of the company. During the same period, VW shares have gone from 199.52$ to 79.01. In essence, this merger has been completed although outstanding issues remain. During this attempted takeover now turned merger over 50% of the market value of the two companies has been lost.

    Initial Merger Proposal and the Final Outcome;

    The saga of the Porsche-VW merger began with an attempt by Porsche to secure production agreements with VW by acquiring a 31% share, which, along with the government’s 20% share, would make VW unassailable by threats from outside interests. Whether or not this was the actual intent of Porsche or a disguised initial play to gain control of VW is unknown; but soon after, Porsche began a run to obtain up to 75% of VW, ending up with 51%.

    Having gained control, Porsche still faced three obstacles:
    • Germany’s prevailing “VW Law,” limits any shareholder’s voting rights to 20%, regardless of the number of shares they own.
    • a large amount of debt they shouldered in the acquisition process, and.
    • suspicions about the foul play during an options deal on VW stock where Porsche made millions.

    One of these obstacles was overcome when the European Commission ordered Germany to repeal the VW Law because it restricted the free flow of capital, but the debt proved to be overwhelming, in part due to the recession and the difficulty firms faced obtaining capital at reasonable rates, and Porsche was forced to turn to VW for help. This was the beginning of the final merger process, which, as of today, is still incomplete due, in part, to lingering suspicions about the options deal.

    Although not set in stone, as it stands, VW owns 49.9% of Porsche while Porsche owns 53% of VW, Qatar Holding owns 10% of Porsche and 17% of VW and the government of Lower Saxony retains its 20% of VW. The Piech and Porsche families, the founders of both companies, own about 40% of the merged company and Porsche’s CEO and CFO, the guys who engineered the options deal and the takeover bid, and who turned Porsche into a profitable company in the first place, have resigned.

    Costs and Benefits for both Volkswagen and Porsche;

    Highlight both Costs and Benefits for both Firms under the Proposed Merger;

    The benefits of the merger are that VW’s operating profit is expected to increase by 700 million euros a year, Porsche engineering may boost the appeal of VW’s more expensive models, and the “platform” system of cutting costs by using standard parts for multiple car models will be expanded as Porsche lines are integrated into VW’s stable. Another benefit, which may not be a benefit so much as a bragging right; is that an expansion of VW brings it that much closer to becoming the world’s biggest carmaker.

    Finally, and although not directly tied to the merger an issue; that gained additional attention from it, is the EU-ordered repeal of the VW Law. Porsche’s former boss, Wiedeking, was looking forward to changing VW’s culture from a socialized, semi-protected concern to a capital-efficient machine-like Porsche, and if VW does indeed become more competitive in the global market as a result of the merger or the repeal of the law they could see an increase in profits.

    Part 01;

    In contrast to the more speculative nature of the merger’s benefits are its costs. At the top of the list is the debt load acquired by both companies during the process, particularly Porsche; which racked up 12 billion when it was buying VW stock. During the merger, Porsche has been losing billions due to costs associated with combining with VW. In the second half of 2009, Porsche’s net income dropped by 83% and is planning to raise 5 billion through stock issuance.

    Porsche’s exposure in the options lawsuit has expanded to nearly 2 billion. For its part, VW is paying 3.9 billion for 49.9% of Porsche and is selling 135 million preferred shares in the next few years to cover some of the cost. Meanwhile, both VW and Porsche seem to be counting on increasing sales in Brazil and China to cover those debts.

    Secondly, there is the tension created by putting the competing brands of Audi; Bentley, Porsche, Bugatti, and Lamborghini under the same, corporate umbrella; a move that should naturally result in a reduction in the number of models offered and price increases in the luxury car market.

    Finally, there is also the issue of management to consider. Porsche was the world’s most profitable, small carmaker when the process began; and its initial steps to acquire VW shares were motivated by that company’s weakness. Now with the merger, the new company is larger and more debt-ridden; and VW’s leadership will be taking over Porsche rather than the other way around. In essence, a larger, weaker company has absorbed a smaller, stronger one; and while Porsche seemed to have a strategy of turning VW into a more cost-efficient and profitable company; VW is merging with Porsche only because it can, or must.

    Part 02;

    On paper, with its 53% share of VW, Porsche seems to have control, since VW only owns 49.9% of Porsche. However, Bloomberg is reporting that “Volkswagen AG considers naming Matthias Mueller; its chief product strategist, to run the sports-car maker (Porsche)”; which is a strong indication that VW is calling the shots and supports the frequent descriptions of VW’s “reverse take-over”. However, the reality is that the ownership of the two companies is so closely tied; that it is easier just to say they remain under the control of the Piech and Porsche families; with large portions held by Lower Saxony and Qatar.

    There are so few shares left available that VW’s ordinary shares might remove from the German stock exchange. As previously stated, we don’t believe that the merger was particularly worthwhile because the costs involved outweigh the benefits. Certainly, the 2008 recession exasperated the cost involved because Porsche’s access to cheap capital became harder to come by. It racked up more debt acquiring VW stock than it would have a year or two earlier. In this sense, Porsche choose a poor time to embark on an aggressive, financial maneuver; and VW, who performed their own “reverse take-over” later on, did so in the same environment.

    Part 03;

    New car sales were down globally in 2008; and the general reduction in sales should’ve affected both companies equally, making it a moot point. Although it isn’t explicitly mentioned, Porsche should’ve suffered more in the recession; because they only sell luxury products, a category of goods that is very elastic about income levels. VW, in contrast, has a wider variety of products, including more affordable cars; which might help to keep them afloat as sales of their many luxury brands fall off.

    Rising oil prices shouldn’t be that important to VW or Porsche. Owners of luxury cars that sell for more than 100,000 don’t blink if the cost of gasoline goes up; so, Porsche sales should unaffected. VW’s luxury models should also see the same effect. However, VW should see a short-term drop-off in sales of their affordable, high consumption models like their SUVs; but partially make up for that drop-off in increased sales of more fuel-efficient models; although those tend to have smaller profit margins.

    Volkswagen and Porsche Case Study for Corporate Merger PDF Image
    Volkswagen and Porsche Case Study for Corporate Merger PDF
  • After Email Verification Service, What’s Next?

    After Email Verification Service, What’s Next?

    Using an email verification service prevents you from doing anything that might harm your reputation, much like the fact-checkers who checked every Time Magazine piece before it was published in print. However, validation is just a tiny component of the whole process. You can do more to keep your subscriber list clean.

    Email Verification Service, Make sure you get your emails in the appropriate form first.

    Buying a list of email addresses is a waste of time and money. Addresses collected in this manner are likely to include spam traps and also other email addresses that are unfriendly to the sender’s reputation. Expand your email list by obtaining the approval of new subscribers via sign-up forms, as described in our article. To get you started, here are some ideas:

    Second, double-check your subscribers’ intent by using a double opt-in process.

    You may verify your subscribers’ email addresses and interest in your brand by using double opt-ins. You must email the subscriber asking them to validate their email address if you use a double opt-in instead of an SMTP ping. A bounce is likely to occur if the email address is incorrect. Use the dual opt-in approach after your other validation tests to reduce your bounce rate dramatically.

    Plan ahead of time to eliminate dormant customers using a “sunset policy.”

    Subscribers that aren’t interested in your content aren’t worth your time or money. These dormant emails may end up as spam traps. It’s safer to eliminate them from consideration than to put yourself in danger. Maintaining up-to-date contact information on your email lists helps you avoid falling victim to spam and boosts your open and click-through rates. That’s fantastic news!

    Protecting your sender’s reputation and reaching the intended audience are the primary goals of effective email validation. To avoid email bounces, it’s essential to do email address validation as soon as possible. To create a good connection with your subscribers, you must first verify that they are authentic.

    When it comes to converting subscribers into repeat customers, how do you do that?

    Your transactional emails may be one of the first ways you may communicate with a new subscriber. You may have received this email due to a recent transaction, a double opt-in message, or some other reason. First impressions count, so don’t blow it! Additionally, please don’t overlook the chances to establish connections with subscribers to turn them into repeat clients.

    What should you look for if you want to use an email validation service?

    There are a wide variety of services available for validation. Your objectives and budget should guide your decision-making. Find out what services each supplier provides and whether there are multiple service levels available before making a final decision. In addition to checking to see whether they have what you’re looking for, you should additionally do an investigation:

    • Whether or not the service can manage the number of emails you need.
    • It’s how soon the bulk validations are completed. Will you get a return report in a few hours or a few days after submitting your list?
    • Does the real-time validation work as promised for customers?
    • How well does the service’s software work with the sign-up forms you use?
    • How to deal with integrations. Will you be able to quickly and also easily do bulk email checks and sync the results with your contacts database?
    • How reliable are the findings of the validation service? How do they ensure that the results are accurate?
    • Is there any feedback from other consumers regarding how well the business performs? Can you tell me whether you’re getting the help you need?
    After Email Verification Service Whats Next Image
    After Email Verification Service, What’s Next?
  • Case Study of Volkswagen Scandal Diesel Assignments Essay

    Case Study of Volkswagen Scandal Diesel Assignments Essay

    Volkswagen Scandal Diesel Case Study Solution with Assignments Essay; In the dynamic of the year 2015, the scandal about diesel cheating damaged the image of the Volkswagen Company. The harmful and mortal effects of nitrogen oxide; which is a pollutant found in car exhaust have led the Environmental Protection Agency (EPA) to tighten emission run at the forefront of the attention paid to conservation and saving the green. The dealing out agreed to pursue quick-term needs forgetting the prospects of the company. Discuss the environmental implications of the scandal.

    Here are the articles to explain, Case Study Solution for Volkswagen Scandal Diesel with Assignments Essay!

    The leadership of the company made an unchangeable gamble bearing in mind the stakeholder’s trust and resources. The Diesel emissions scandal, The cheat was in origin taking into consideration the stringent measures initiated by the EPA. These stringent events are necessary after the nitrogen gas emitted is harmful to human health and results in diseases such as asthma, premature death, bronchitis, and respiratory and cardiovascular. The Volkswagen Company’s reputation existed deeply damaged by the scandal leading to low revenue and supplementary effects including ham it taking place suites. For more reference in the version to Volkswagen as a matter and how they are roomy, let a see at our Volkswagen SWOT Analysis. Conclude with a discussion of the future of Volkswagen.

    Introduction to the Volkswagen Scandal;

    Introduce the Volkswagen scandal and its effects. Over the last few decades, there has been great concern regarding the sustainability and conservation of the environment. Environmental pollution and globalization have become the concern of most environmental protection agencies. The harmful and mortal effects of nitrogen oxide; which stands as a pollutant found in car exhaust have led the Environmental Protection Agency (EPA) to tighten emission control considering the attention paid to conservation and saving the green. These concerns have made the EPA constantly announce restrictions for standard emissions for all types of vehicles the sports cars, heavy-duty trucks, automobiles, and other types of cars. These stringent measures are necessary considering that nitrogen gas emitted is harmful to human health and results in diseases such as asthma, premature death, bronchitis, and respiratory and cardiovascular.

    The scandal reflects corporate misbehavior on the part of Volkswagen. The automakers manufacturing fuel-efficient diesel cars in the United States faced hardships due to these new stringent emission regulations. Volkswagen is among the automobile makers in the United States market that were new stringent regulations. However, in the year 2015, the EPA announced that Volkswagen was a diesel dupe following its strategy to deceive the emission test. Volkswagen managed to deceive the test by showing less emission in its engines than what the engine emitted in the real sense. Therefore, this essay stands aimed at analyzing the extent to which this issue of diesel dupe has ruined its reputation of Volkswagen.

    Analysis;

    In light of the discovery of the diesel dupe Volkswagen in 2015; the mechanism aimed to alter the detection of nitrogen oxide gas in Volkswagen diesel engines. The test of the emission of nitrogen oxide in the lab was thirty-five times more on the road hence endangering the lives of the people. The leadership of Volkswagen decided to take a shortcut in the production of their internationally recognized brand. This rigging scandal has had a bad reputation for Volkswagen leading to a series of consequences for its direct and indirect stakeholders.

    The impact of the Volkswagen Scandal;

    In the previous year before the rigging scandal, Volkswagen was among the leading automobile producer in the automobile industry just second after Toyota Company. However, Volkswagen’s admission of guilt in the scandal had a series of effects on it and its operations and the company. The scandal severely damaged the company’s reputation in the automobile industry. Building a reputation in the business world takes time but destroying it is often fast; therefore, this has led to the Volkswagen Company bringing in three public relations company companies to help manage the crisis from Germany, Britain, and the United States. The implications of this deceit by Volkswagen leave the company in a bad condition considering; that it has to deal with different regulations since the company is an international brand.

    The Role of the Managers;

    Good leadership has three pillars that support it which are commitment, character, and competencies. Therefore, if any of these three values is not present; then there are bound to be problems for the stakeholders, the manager, and the entire organization. In any organization, corporate social responsibility and sustainability have proven too challenging. This follows as managers exist faced with the challenge of the tradeoff between the long and short-term decisions. This tradeoff often poses decisions between the survival of the business; and its annual compensation, between long-term environmental factors and quarterly profits, and between short-term and long-term goals.

    Business schools must learn a better way to teach students about these tradeoffs and ways of handling them not ignore them. Resilience is key to financial sustainability. Therefore, business is capable of surviving natural disasters or financial crisis. Moreover, the manager’s relationship with the employees, the environment, and the community result in resilience. Therefore, it is important that businesses not work against the institutions that enable their long-term success. However, the antithesis of sustainability is what the Volkswagen Company showed in 2015 through diesel dupe.

    Others role;

    It does not make any sense for the managers of Volkswagen to create; this shortcut and be comfortable thinking it would lead to long-term success. The deception played on the consumers and the regulators compromised the long-term needs and success of the company despite achieving the short-term needs. The decision the managers made regarding the tradeoff between short and long-term existed surely misguided. Volkswagen stands as a company surrounded by competent staff and the managers exist well educated and have vast experience in the industry. Therefore, tabling an argument that there was a shortage of expertise would be wrong and misguided. The strong desire of the managers to succeed at whatever cost is what brought this predicament to the company.

    They did everything with a sense of urgency and approached the challenges faced by the company with passion and vigor. The decisions these managers made, it is a case of failure in leadership. Research has concluded that drive, temperance, courage, humanity, collaboration, humility, integrity, accountability, justice, transcendence, and judgment are all qualities of a good leader and must all work together since using overusing one trait may result in liability. These traits are essential considering they enable a leader to think things through before making a decision. Moreover, the trait of justice helps in knowing the importance of giving back to the society; that ensures the success of the business and not harming them like in the case of Volkswagen.

    Threatening People’s Health;

    In case the scandal regarding the cheat device would not occur; sixty people would have died a premature death in the United States alone by the end of 2016 due to the additional pollution the Volkswagen cars produce. The 428,000 Volkswagen and Audi diesel cars manufactured produced more nitrogen oxide gas forty times more; than the standard allowed by the Clean Air Act in the period between 2008 and 2015. Researchers have concluded that every six years the cars Volkswagen and Audi produce an excess of about 36.7 million kg of nitrogen oxide; which is very bad for the environment and the health of human beings considering diseases like cardiovascular diseases; and other respiratory diseases that exist caused by this emission.

    Moreover, the research also stated that sixty people between the age of 10-20 exist endangered by these emissions. Additionally, the effects of these emissions would result in the United States spending about $450 million on people over six years in the period between 2008 and 2015. There would be 140 premature deaths in the event Volkswagen failed to recall vehicles manufactured from 2015 onwards. Moreover, the Volkswagen diesel cars would cost about $840 million in health costs. Finally, acid rains exist caused as a result of nitrogen oxide production in the atmosphere; which leads to the destruction of property, and natural resources and badly affects the health of humans.

    Drop-in Volkswagen Sale;

    Bad reputation ruins businesses beyond recovery. Just as expected, Volkswagen faced a severe decline in revenue since the Volkswagen scandal of diesel. The scandal resulted in customers switching to its competitors disabling the sales of Volkswagen vehicles. For the first time since the year 2002, Volkswagen sales plunged throughout the world due to a bad reputation. Furthermore, the scandal affected every aspect of the Volkswagen brand considering even the share values slumped. The slump in share value started declining immediately after the scandal stood revealed resulting in a one-third drop. The decline in revenue stood expected considering no one wants to associate with a company facing a scandal and no customers would buy products that cause health problems.

    Recommendations – Lessons learned from the Volkswagen Scandal;

    The culture and structure of an organization are key to its success. The business environment is very different from the practices in the past. Employees are the engines, which move an organization; hence, failure to treat them ethically could result in grave consequences. Increasing the morale of employees is vital to the achievement of tasks and productivity in an ethical manner. There is no hierarchy in value-based practices and employees work in small groups that enhance productivity. Moreover, democracy stands promoted considering the employees report issues and concerns to their superiors resulting in high productivity within the organization.

    From the actions of Volkswagen regarding the scandal of diesel; it is evident that the company resorted to shortcuts due to the stringent measures imposed by the EPA. Therefore, it is the role of the EPA to ensure the automobile industry does adequate research and finds alternative technology; which does not affect the environment; moreover, the EPA body has the mandate to ease its stringent measures.

    Other things;

    The EPA body must ensure it offers adequate support to the automobile makers and introduces a more feasible standard to the automobile makers to avoid companies from taking such actions as Volkswagen. The value-based approach is vital in the management of employees hence it should embrace by organizations. The EPA also must provide programs, which support the endeavors of the automobile makers. Volkswagen Company can regain its reputation back but that will not be easy. The first thing the company must do is do overhaul its leadership and bring in new faces.

    Moreover, there needs to be a fresh start therefore, the person must also be new. After clearing the personnel and the leadership, there should be constant apologies to its customers. Afterward, the company needs to spend more money buying back the cars and fixing the problems to meet the standards of the EPA. The process of recovery will take time fixing the court cases and getting back in the good graces of people. However, spending time and money and ensuring no more mistakes is the only way the company will recover from this hit.

    Conclusion;

    In light of the Volkswagen scandal diesel discovery, it is clear it was an act of pure conmanship. The company decided to make profits at the cost of its customers and the environment. This scandal created a complicated situation for the stakeholders of the company. The actions of Volkswagen’s management were unethical to the business world leaving a bad name for the company. The management decided to pursue short-term needs forgetting the prospects of the company. The scandal left the company in a series of cases including a violation of the Clean Air Act and a series of international laws.

    The leadership of the company made a complete gamble with the stakeholder’s trust and resources. The company had already established itself worldwide hence such a scandal cost it a huge price considering; that it would take a long time for it to get back to its glory days. The leadership of an organization is vital as it plays a significant role within the organization; and, its decisions may make or break the organization, therefore, in this case, Volkswagen’s leadership made a grave mistake.

    Reference; It stands Retrieved from https://www.ukessays.com/assignments/volkswagen-case-study-2021.php?vref=1

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    Case Study of Volkswagen Scandal Diesel Assignments Essay; Image by andreas160578 from Pixabay.