Sunday, March 15, 2020

Working Memory The WritePass Journal

Working Memoryï » ¿ Write-Up Working Memoryï » ¿ Write-UpMethodParticipantsMaterialsDesignProcedureStatistical analysisDiscussionReferencesRelated Write-Up The field of memory provides excellent opportunity for research, drawing theoretical models and implementing them to check their validity. Working memory, in psychology, is a memory system that holds information to perform various verbal and non-verbal (even physical) tasks. It is very important from the viewpoint of processing information and enacting it in day-to-day life. Though a simple three stage model for memory (Encoding, storage and retrieval) was proposed initially, experts like Baddeley proposed that working memory is much beyond these three phases and memory functions of short-term memory and long-term memory are very complex in comparison to what initial chunking of memory into theoretical aspects initially suggest (Becker Morris, 1999).   He introduced a novel approach to depict working memory as a not as three-part system that temporarily holds information as people perform cognitive tasks but a perennial work-desk on which information is manipulated and assembled t o help us comprehend decide, and in problem-solving (Baddeley, 1996, 2003). According to Baddeley’s view of working memory, we can pictorially imagine a managerial executive (Central executive memory) with two helpers (Phonological loop Visuo-spatial working loop) (Hamilton, Coates Hefferman, 2010; DeRenzi Nischell, 1975). This theory and its fractionization have neuropsychological evidence, experimental evidence and developmental evidence. A study states that left posterior hemisphere of the brain is actively involved in working memory. Other studies show that even right posterior is actively involved but in working memory but non-visual aspects. It might be involved in spatial aspects. Despite the heavy argument, involvement of different brain regions in working memory (Phonological and visuo spatial) establishes a base for neuro-psychological evidence (Vallar Baddeley, 1984; Hamilton, Coates   Hefferman, 2010). Laboratory based experiments show how visual short-term memory task is strongly disrupted by visual as opposed to spatial interference, and also spatial memory task was simultaneously more strongly disrupted by spatial interference. This double dissociation supports the theoretically proposed fractionation of working memory (Klauer Zhao, 2004). Developmental evidence suggests that visual subcomponent of the visuo-spatial sketchpad is distinct from the spatial subcomponent as seen in children aged 5-6, 8-9 and 11-12 (Logie Pearson, 1997). Thus, arising from strongly evidenced studies, Logie presents a distinct model of two separate systems (Visual and Spatial) (DeRenzi Nischell, 1975). The visual storage aspect stores information about form and colour whereas spatial control takes care of aspects pertaining to locomotion, limb movements and also rehearsal of information (or series of information in visual cache) (Logie Pearson, 1997). The proposed study explores the topic of fractionalisation of memory in lines with the above mentioned strong theoretical and research based evidence. However, the trajectory of interest is along the lines of research done by Logie and Pearson (1997) in developmental field. This study examines the visual and spatial development in children and adults. There may be many limitations pertaining to use of methodology. The visual recall of design and Corsi blocks are two distinct materials, not only in terms of format but also in terms of material to be recalled. Thus comparison of two unequal factors may raise questions about the validity and outcomes of the studies. Logie and Pearson’s study focussed solely on children of different age groups, but since it is purported to measure visual and spatial aspects of working memory under a developmental pathway, this study will use children and adults are subjects (Logie Pearson, 1997; Klauer Zhao, 2004). Other arguments against the reliability and objectivity of studies in this area have been in terms of usage of participants and individual, genetic, ethnic and anthropologic differences within the patterns of development. It is not possible to outline a single or a group of factors that predict the pathway of development. Our research hypothesis is designed to measure two questions. The first part of the hypothesis seeks to inquire whether according to the fractionation; the visual and spatial systems should develop at different speeds in humans. In accordance to the first part of the hypothesis, the second part inquires whether the developmental trajectory for visual system is shallower than spatial system. Method Participants The study has 139 participants in all comprising of 65 (46.8%) children and 74 (53.2%) adults. Among these participants are 56 (40.3%) males and 83 (59.7%) are females. The mean age for boys is 15.65 years and that for girls is 18.5 years. Materials Two basic materials (tests) have been utilised viz: Visual recall of designs and Corsi Blocks. The recall of design is a paper-pencil task that requires the experimenter to show a particular design on paper to participants for 5 seconds and the participant recalls it by drawing it on paper (Logie Pearson, 1997). The Corsi test presents a blue board with nine wooden cubes. The experimenter taps out a sequence of blocks (in increasing order after each successful completion) and the participant taps out the blocks in exactly the same sequence (Fischer, 2001). Design The variables design in a classroom based experimental condition testing factors between subjects (Adults, Children) and within subjects (Males, females) performance of Recall of design and Corsi. The visual and spatial working memory development are the Independent variables whereas the developmental trajectory is the dependent variable. Procedure In a classroom settings, both children and adult group were individually given tasks performance on Visual recall of design and Corsi block task. The scores of recall of design and corsi test were done during task administration itself. Calculated scores for each individual in the adult and the children group are put up before conducting statistical analysis. Statistical analysis Statistical analyses used can be divided into Descriptive statistics and inferential statistics. SPSS 19.0 was used for data analyses. Graphs, Histograms and Comparitive bar charts along with mean and median related data falls into descriptive statistics category. We have also conducted two unrelated t-tests; one to compare children’s recall of design with adults and the other one to compare children’s Corsi scores with that of adults. The mean score of children on visual memory is 14.17.     (Mean=11.02, sd=1.727) and that of adults is 14.42 (Mean= 17.45, sd=2.765). The mean score of children on spatial memory is 11.02 (Mean=14.17,sd=2.275) and that for adults is 17.45 (Mean= 14.42, sd=2.196). The above table clearly shows that with respect to the spatial component there is a statistically significant difference between the adult mean and children’s mean (p=0.000) which is well below the 0.05 threshold.   In fact from the above table it can be seen that the adult mean score is 17.45 whilst that of the children is 11.02 meaning that on average the adults scored about 6.4 more than the children. The above table clearly shows that there is a statistically significant difference between the adult mean and children’s mean   on spatial component (p=0.000) which is well below the 0.05 threshold which is very highly significant The above table clearly shows that in terms of the visual component there is no statistically significant difference between adult mean and children’s mean (p0.5) which exceeds the 0.05 threshold.   It depicts how the mean difference between adults and children in relation to the visual component is very small resulting in no statistically significant difference in mean scores. Since there is high significance between the children and adult’s spatial component but no statistical significance between children and adult’s visual component, we can say that there might be a different trajectory in children and adult’s development patterns. It doesn’t however completely fulfil the hypothesis. Discussion The findings do not support the hypothesis in all earnest. There is no correlation between children and adult scores on visual component but there is a very significant relationship between children and adult scores on spatial component. It may be said that the difference has emerged because of the previously raised issue of different methods. Since, Corsi and Recall of design are two distinct tasks, it can be argued that their performance cannot be correlated. However, since the spatial component shows good correlation, it signifies that the trajectory may be well defined and that it develops more easily. However, not much light is thrown on why the results have come up the way they have. Further research may be interested in using Multiple regression to predict the possible factors that may have caused a high correlation in spatial scores and if there are any common factors in children and adults, they might as well be highlighted. However, like previous studies, this study support s the Logie -Pearson model as well as justifies the fractionation approach given by Baddeley. Memory is much beyond its’ structural and functional aspects. Though initial divisions on memory and development of theories have described functions and its’ aspects at a superficial level, this research has gone in depth to investigate difference in developmental trajectories. Since, it is a part of developmental aspect, it has many possibilities of further research (Baddeley, 2003; Logie Pearson, 1997). References Baddeley A (2003) Working memory: looking back and looking forward, nature reviews Neuroscience, 4, 829-839 Baddeley, A (1996) The fractionation of working memory, Proceedings of national academy of sciences, 93(24), 13468-13472 Becker, J.T Morris, R.G (1999) Working memory, Brain and cognition, 41, 1-8 DeRenzi, E Nischell, P (1975) Verbal and non-verbal short term memory impairment following hemispheric damage, Cortex, 11, 341-353 Field, A (2007) Discovering Statistics Using SPSS (Ed:3 ), Sage Publications: London (United Kingdom) Fischer, M (2001), Probing Spatial working memory with Corsi blocks task, Brain and cognition, 45(2), 143-154 Hamilton, C; Coates, R Hefferman, T (2010) What develops in a visuo-spatial working memory development? European journal of cognitive psychology Klauer, K.C Zhao, Z (2004) Double dissociations in visual and spatial short term memory, Journal of experimental psychology, 133 (3), 355-381 Logie, R.H Pearson, D.G (1997) The inner eye and the inner scribe of visuo-spatial working memory: Evidence from Developmental fractionation, European Journal of cognitive psychology, 9(3), 241-257 Vallar, G Baddeley, A (1984) Fractionation of working memory: Neuropsychological evidence for short term store, Journal of verbal learning and verbal behaviour, 23(2), 151-161

Friday, February 28, 2020

International Retail Market Development Essay Example | Topics and Well Written Essays - 3000 words

International Retail Market Development - Essay Example When, as a strategic goal, a firm wishes to expand its retail operations, it chooses to go abroad as soon as it sees its local market being saturated. This concept ha been better described with the help of many models and theories. Other motivators for internationalization are resource seeking, market seeking, efficiency seeking and strategic asset seeking. Resource seeking and market seeking are usually motivators for a firm’s initial internationalization strategy, while the other two are for sequential internationalization. Moreover, there are a number of factors that need to be considered by retailers before expanding overseas. These are factors, if considered appropriately, will determine success or failure. These typically include selecting the right market, knowing how much to adapt, getting the timing right, having a strong store brand image, and controlling the supply chain. H&M focuses most on getting their information right about the selected market and the attractiveness of this market. Another very important factor that would determine success is the mode of market entry chosen. There are a number of modes of foreign entry but the most common ones are licensing, franchising which has significantly increased the number of retailers expanding overseas and joint ventures. There are many others such as acquisition, mergers and contracts, but are not a part of the scope of this paper. In the past, retailers were thought of as localized entities that had little power (Alexander, 2009, pp.3). However, recently - in the past 20 years, this perception and way of operation has changed, and the existing concepts are no longer fit keeping in mind the recent changes (Dawson, 2006). One of the recent popular retailer strategies is ‘Retail Internationalization’, whereby, a retailer, like many manufacturing firms, decides to go international – or have operations in more than one country (Dawson, 2006; Alexander,

Wednesday, February 12, 2020

Liberation.The Declaration of Independence of the United States of Essay

Liberation.The Declaration of Independence of the United States of America - Essay Example It is one of the most influential documents in the history. So many other countries and organizations have tried to create documents with similar sentence structure and tone as in this document. This document has played a very important part in the history of the United States. This view influenced Abraham Lincoln to such an extent that he considered the Declaration to be the very foundation of his political philosophy. It was this document that explained the significance of the liberation of the United States. There are a number of facts presented in this document that prove why this liberation was extremely necessary (Kelly, N/A). From the overall tone of this document, it can be inferred that this document is persuasive. A persuasive essay is written in an indirect tone, i.e., the main purpose of the document is not disclosed until the very end of the document. In case of a persuasive essay, the document provides facts and evidences that create the context of the main theme of the document. Such facts and evidences influence the reader to accept the core message of the document. Thus, the initial part of the document and a significant part of it lead to the main idea of the document which is provided in the very end. This document is drafted in such a manner that it persuades its readers that the liberation of the United States is highly significant for the betterment of the people of the United States. The initial part of the document simply describes the reasons why the colonies wanted to be separated from the rule of England. The writer starts the document with a very wide scope involving the rules of nature which are highly significant as compared to the insignificant rules created by the man himself. The writer provides the reader with the fact that God created all men as equals and gave them the ability to think to decide what is best for them. â€Å"We hold these truths to be self-evident, that all men are created equal, that they are endowed by the Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness†. This sentence is considered to be one of the best-known sentences in the English language because of the ambit of argument it puts forth. Jefferson provided factual evidence in order to make the people realize the importance of the independence. It was the evidential appeal that was used to make this document one of the most influential documents. The facts provided in this document have been presented in such a manner that they are bound to be effectual. For example; Jefferson initially admits that changing long established Governments should not be changed for causes that are not material, however he later provides that, if the Government does not vary its behavior and tries to use its power against the will of the people being governed repeatedly, it becomes the right and duty of the people being governed to remove the Government and acquire new guards to ensure the s ecurity of their future (Selzer, 2004). After the initial argument, Jefferson provides a list of facts which constitutes a significant part of the document. This list of facts includes certain evidences that cannot be falsified and this only adds to the effectiveness of this document. Some of the facts that he included in his list were regarding the steps that could have been taken by the Government for the betterment of the people but they were not taken. For example; according to Jefferson, the King refused his assent to laws that were necessary for the public good, he has forbidden the governors to pass laws of immediate importance unless his assent is obtained and he neglects to attend to those matters. Jefferson also presented that the King has dissolved the Representative

Friday, January 31, 2020

The Highest Breed Essay Example for Free

The Highest Breed Essay How would you like to own a car that can run and transport you on the road for ten minutes without the engine turned on? (Gold, 2006) No, it won’t be on neutral and without speed control†¦ you simply have to be on a Toyota Hybrid vehicle. This is because when the car isnt using its gasoline engine, such as when you are in bumper to bumper traffic or coasting downhill, it shuts the engine off automatically. Isn’t that neat? That means that you are not burning gas (and your hard-earned money with it) as much as you would have on a conventional car. When you are not burning gas, you too are helping to preserve the earth from global warming. You might want to join the thousands of people who are already seeing the importance of clean air and financial savings just by driving a cool car. Today, I take it upon myself to show you why Toyota Hybrid vehicles, especially the Prius, are the absolute choices for economical and environmental reasons, especially when compared to conventional gasoline-powered cars and other hybrid brands. Global warming is a very urgent issue because it affects the survival of every creature on earth. Global warming happens when carbon and methane gases are excessive and form a sort of force field in the atmosphere. (Mendoza, 2005) This additional layer of smog blocks the heat from the earth from escaping the atmosphere and thereby causes the unnecessary warming which can alter natural weather cycles, etc. How can individuals like us help maintain clean air without sacrificing too much time, effort, and comfort? The answer lies within Toyota Hybrid vehicles. Toyota has been a pioneer in making environmentalists’ dreams come true on the road to zero emissions by coming out with the first mass-produced hybrid car in 1997 – the Prius. In eight years, the Prius has already sold 1,000,000 cars and is 9th best selling car in the US for 2007. (Vlasic, 2008) The Prius is a vehicle run by a battery but has an electric motor and a petrol-powered engine. This means that during stop lights and downhill stretches, the car is simply run by the battery and will only use gas upon the need for higher speed. Ergo, approximately 3. 5 million fewer tons of carbon dioxide had been saved by these cars in the short span of time. (Mendoza) This not only means less pollution but also less need to buy gas. When it comes to fuel efficiency, the Prius is also above its competitors. Compared to a Honda Civic Hybrid which goes about 42 miles per gallon (MPG), for example, the Prius can take the distance to 47 MPG. This means that if you consume $1007 worth of gas on a Civic, you will only be spending $902 on a Prius. This is even more dramatic when compared to the $1650 you would have spent on an ordinary gas-powered car. (Comparison Chart, 2007) Other hybrid models like the Camry and Highlander are also gaining popularity in the market. The Camry is not as fuel efficient as the Prius but is known for its Plasmacluster ionizer which filters micro dust and pollen so you can have clean air inside and outside of the car. The Camry’s battery is also good for 8 years compared to Honda Altima’s 5 years which means it can run longer by about 40,000 miles. The Highlander, on the other hand, is incomparable to the sedans because it is much largely built and therefore requires more power. However, it is preferable to the other hybrid midsize SUVs because of its 241 horsepower compared to the others which can only go up to 208 hp. Toyota, as anyone can see, has been a good pioneer and maintains to be the best in the hybrid industry. Toyota hybrids are above par in fuel efficiency, cost of maintenance, speed, comfort and cleanliness with regards to its emissions. Every responsible citizen who wants to help maintain economic and environmental balance simply has to own one†¦don’t you think so too? If you are thinking of getting a new car or is at least concerned in keeping the earth in proper temperature, please do consider Toyota hybrid vehicles. Trust me, you won’t regret it.

Thursday, January 23, 2020

Natural Necessity, Objective Chances and Causal Powers :: Philosophy Philosophical Essays

Natural Necessity, Objective Chances and Causal Powers ABSTRACT: Are the relations between the property of a thing and its related disposition to react in certain ways, and between the triggering of that disposition and the consequent effect, necessary? Harrà © and Madden, in their analysis of causal powers, said they are, but their arguments are not persuasive. Humeans like Simon Blackburn deny it. I criticize the Humean position, and argue afresh for their necessity. I note that David Lewis' analysis of causation requires their necessity, though as a confessed Humean he has not admitted this. There is an interesting convergence among several recent theories of causation. They describe causes as events of a kind which increase the objective chance of events of other kinds, which are their effects. The theories I have in mind are those of David Lewis (1986, 1994), D.H. Mellor (1995), and Peter Menzies (1996). They attribute various other properties to causes, but all agree that this is an important and necessary fact about them. Thus, dropping a crystal wine glass onto a hard floor can be said to have caused it to shatter because it increased the probability of its shattering at that time, since whenever a piece of crystal glass is struck by a hard object, it will very probably shatter. Such generalizations relating cause and effect can be understood as being true of something because of one of its properties. For instance one can say: if something has the molecular structure of crystal glass, then if it is hit by a hard object it will very probably shatter. The generalization relating cause and effect can then be seen as a disposition of the thing whose property makes it true. In this case it amounts to saying that things which have the molecular structure of crystal glass are fragile. More generally, the generalizations involved in causation are of the following form: if something has a certain property, then if it comes into a certain relation with something else, it will result in another event, with a certain objective probability. Call this generalization [G]. This generalization looks very much like the analysis of causal powers offered by R.Harrà © and E.H. Madden (1975). They defined the causal power of a thing in terms of its disposition to behave in certain ways in certain circumstances because of its nature. They wrote: "'X has the power to A' means 'X will or can do A, in the appropriate conditions, in virtue of its intrinsic nature' (p.

Wednesday, January 15, 2020

Models of decision making Essay

When we speak of rational behavior, we should remember that our focus in this discussion is not on making decisions, but rather on how to support the process of making decisions. Managers are change agents, not just decision makers, so the steps before and after a decision are as important as the actual choice of action. Preparatory steps include creating tension for change, understanding the positions of the various constituencies, and developing political support for a chosen action. Steps after the decision include naming the change monitor and identifying the monitoring methods. Therefore, the mission of good information system is broader than just collecting data to make a choice. Designers of information systems must understand not only how managers think but also how the decision process will be implemented in the managers’ environment. An information system that is well design is an information system that is used. Thus, an information system, in order to be useful, must be implemented. To understand the implementation process better, we review three models of organizational decision making rational, administrative, and political. The Rational Model. The rational model of decision making was introduced earlier in this chapter. It is based on the logic of optimal choice: the choice that would maximize value for the organization. The manager is assumed to be an objective, totally informed person who would select the most efficient alternative, maximizing whatever amount and type of output s/he values. We can summarize the rational choice process as follows: 1. An individual is confronted with a number of known alternative courses of action. 2. Each alternative bears a set of possible consequences. These consequences are known and are quantifiable. 3. The individual has a system of preferences or utilities that permits him or her to rank the consequences and choose an alternative. There is no empirical support for the contention that these three phases are actually used. In reality, managers seldom have the time or money to analyze all alternatives or envision all consequences. If rationality were ever-present among members of an organization, the organization would appear as a coherent and rational  policy-making entity that maximizes the attainment of a unique set of goals and has no internal conflicts. In other words, a rational decision process implies a rational organization. A rational organization is an organization that has (1) centralized power, (2) harmony and consistency of goals across boundaries, and (3) members who are objective, fully informed, and inclined to choose alternatives that maximize the common good of the organization. The rational model represents a sanitized vision of how organizations make decisions. In reality, organizations often seem more like complex groups of coalitions fighting for shares of limited resources, and using multiple sources of information with varying reliability to achieve a set of fluid goals. Individuals within organizations typically have widely divergent perceptions and goals and act to maximize their own gains, not necessarily those of the organization. Because of this disparity between the rational model and reality, we prefer to accept the rational model primarily as a benchmark for comparing the remaining two organization decision-making processes. In searching for a more realistic description of how organizations make decisions, we turn to the satisficing, or administrative, model. The Administrative Model. The quest for a more realistic description of organization decision making produced a variation called the administrative model. This model sees decision makers as people with varying degrees of motivation who are besieged by demands but have little time to make decisions and thus seek shortcuts to find acceptable solutions. Under the administrative model, a decision maker does not try to optimize but instead â€Å"satisfices† treats objectives as loose constraints that can tighten if there are many acceptable alternatives that fulfill those constraints. While optimization would require choosing the alternative with the highest value, satisficing requires finding the first alternative with an acceptable value, that is, an alternative with a value above a minimally acceptable level on a given constraint. Assume you had a car you wanted to sell. If you listed your car for $2,500 and had 10 offers, you could choose with either method. With the rational method, you would determine which offer had the highest value in terms of conditions and price. With the satisficing model, you would accept the first offer that met your lowest acceptable price. Satisficing may lead to a reduced decision quality, but it saves time and effort. Satisficing is a dynamic construct: the aspiration levels of the manager and the number of alternatives determine what is a â€Å"feasible, good enough solution.† It has been pointed out that satisficing is an appropriate (i.e., rational) strategy when the cost of delaying a decision or searching for further alternatives is high in relation to the expected payoff of the supposedly superior alternative. When you take into consideration the costs related to extended search, it is questionable whether the optimum procedure is to search for the optimum value. When a decision has been reached and the solution to the problem implemented and found to be acceptable, then the organization institutionalizes the procedure used to solve the problem into astandard operating procedure (SOP). SOPs are rules, programs, and routines that are invoked by managers to gain time and to avoid the task of solving a problem from scratch each times it appears. Sometimes managers invoke those SOPs when the organization is facing a similar but not identical problem to the one that the SOP originally solved. Since SOPs are often processes that worked once but nobody is quite sure why or whether it was the best way to solve the original problem in the first place. SOPs are not always the time-savers they are supposed to be. Once implication of having rationally bounded decision makers in organizations is that organizations cannot be seen as single entities. Rather, problems are broken down and assigned to specialized units within the organization that develop their own priorities and goals. These goals, sometimes termed subgoals, may not agree with the organization’s overall goals. This phenomenon has been called local rationality.3 Using the perspective, organizations could be viewed as constellations of loosely allied units, each having a set of SOPs and programs to deal with its piece of the problem. As time passes, these units become more distinct and their subgoals more entrenched. These divergences are enhanced by increasingly distinct perceptions of priorities, information, and uncertainty; they are further reinforced by recruitment, rewards, and tenure. When these tendencies are very strong, the loose alliance of organization units breaks down into â€Å"organized anarchies.† In the extreme case, coalitions are created with conflicting interests. This leads us to the political model of rationality. You should note that the term political does not imply that this model is only relevant in the public  (government) sector; rather the term applies to a type of organization that may exist in any industry or industry sector. The Political Model. In contrast to the rational model, players in the political model (often referred to as incrementalists) do not focus on a single issue but on many intraorganizational problems that reflect their personal goals. In contrast to the administrative model, the political model does not assume that decisions result from applying existing standard operating procedures, programs, and routines. Decisions result from bargaining among coalitions. Unlike in the previous models, power is decentralized. This concept of decision making as a political process emphasizes the natural multiplicity of goals, values, and interests in a complex environment. The political model views decision making as a process of conflict resolution and consensus building and decisions as products of compromise. The old adage, â€Å"Scratch my back and I’ll scratch yours,† is the dominant decision-making strategy. When a problem requires a change n policy, the political model predicts that a manager will consider a few alternatives, all of them similar to existing policy. This perspective points out that decisions tend to be incremental— that managers make small changes in response to immediate pressures instead of working out a clear set of plans and a comprehensive program. This incrementalist approach can be seen as the simplest or most extreme form of satisficing. The incremental approach of the political model allows managers to reduce the time spent on the information search and problem definition stages. Incremental decision making is geared to address shortcomings in present policy rather than consider a superior, but novel, course of action. In the political model, the stakeholders have different perception, priorities, and solutions. Because stakeholders have the power to veto some proposals, no policy that harms a powerful stakeholder is likely to triumph even if it is objectively â€Å"optimal.† Our purpose in reviewing these models of organizational decision making is to highlight the realities of decision making that must be recognized when developing or acquiring information systems. If the designer of an I/S assumes that the rational model is a valid representation of the way a given organization is being managed when in fact the political model is a more valid description, s/he may encounter serious implementation  problems. For example, access to information can be very sensitive issue, since in politics, â€Å"information is power.† If managers discover that once a new information system is implemented they will no longer have access to certain data, it is quite possible they will resist the implementation effort. When we consider the issue of organizational decision making, it is important to recognize that the structure of the organization has a strong influence on how and when information is communicated and who gets involved in what decisions. We now turn our attention to the issue of organizational structure.

Tuesday, January 7, 2020

Merger Analysis Essay Example For Free At Magic Help - Free Essay Example

Sample details Pages: 8 Words: 2411 Downloads: 4 Date added: 2017/06/26 Category Business Essay Type Analytical essay Tags: SWOT Analysis Essay Did you like this example? Mergers and acquisitions have long been an established form of corporate development to increase the strength of a business in an array of areas. The logic behind the Daimler and Chrysler merger was obvious, with Neubauer et al (2000) elaborating that it would potentially make the company an automobile powerhouse internationally and not just in mainland Europe. Furthermore, both companies felt that they were individually too small to challenge on a global scale in the long term. Don’t waste time! Our writers will create an original "Merger Analysis Essay Example For Free At Magic Help" essay for you Create order Chrysler were in agreement and believed the merger would generate enhanced prosperity. In 1998 Daimler paid $38 billion to takeover Chrysler in a horizontal merger (The Economist, 2000). The advantages of such a formidable merger are massive, with Gaughan (2007) believing that the primary benefits of a merger are synergy, value creation and competitive advantage. The merger of Disney and Pixar has symbolised these benefits with Barnes (2008) indicating that since 2006 Disneys stock rose by 28% in 2008 and revenue streams have continued to increase substantially. The two firms adopted a united approach, utilizing their expertise to increase the quality of their products. With Daimler ranked 17th and Chrysler 25th globally in 1988, the amalgamation would undoubtedly boost the value of the combined company, whilst also exploiting economies of scale which would allow the company to maximise profits, increasing share value. The sum of the whole was anticipated to be greater than the two p arts. The merger was claimed to be a merger of equals where the expertise and knowledge of the two companies would be combined to forge high quality marketable products. In reality this was not the case with Daimler thrusting their authority over Chrysler by installing German executives into senior positions within Chrysler. The scale of the failure of the DaimlerChrysler merger was illustrated when Daimler sold Chrysler to Cerberus for $7.8 billion in 2007, an astounding loss on what they had invested for Chrysler. Jensen and Ruback (1983. P.43) stated that on average target shares increase in price from 16% to 30% around the date of the tender offer. This does offer reasoning for why Daimler incurred such a loss. However, the issues are much more complex than this simple explanation. Jensen and Ruback (1983) believed such direct action was critical for corporate control. Sudarsanam and Mahates (2006) research would support this claim as they identified that hostile takeovers in nature tended to produce higher returns than a friendly takeover. From this aspect such a strong action was recommendable to achieve control. Johnson and Scholes (2000) believed a SWOT analysis was an effective method isolating the opportunities gained from a merger. Indeed such an analysis portrayed that the merger would allow massive market power growth, value creation and competitive advantage. A SWOT analysis in regards to the merger has been created below to illustrate the strengths, weaknesses, opportunities and threats of the merger. Daimler and Chrysler Merger SWOT Analysis Strengths Savings through economies of scale Large corporate brands Increased capital strength Competitive advantage through size Weaknesses Difficult to control and direct such a large organisation Two diverse cultures (European American) to infuse Different customer bases Opportunities Entry into new markets (Particularly Asia) and market expansion Innovation through combined expertise Potential to become a dominant market leader Threats Such a large merger can be high risk to the existence of both companies Newly formed DaimlerChrysler lacks any corporate identity, customers may not align with it Cultural Differences Matsumoto (1996, p.16) defined culture by stating that culture is the set of attitudes, values, beliefs and behaviours shared by a group of people, but different for each individual, communicated from one generation to the next. In contrast to the thought of Jensen and Ruback (1983) the ousting of management violated the long established culture within Chrysler, which in turn was the catalyst for the cataclysmic failure that was the DaimlerChrysler merger (Neubauer et al, 2000). Employees resisted the European style which caused great conflict and tension between the two organisations. Incidentally, this compromised the communication process, resulting in poor products and disappointing sales in relation to the size of the merger. Pritchett (1997, p.7) identified a failure rate of 61% in acquisition programs, with failure defined as not earning a significant return. This was very much the case for DaimlerChrysler, with the BBC (2000) reporting a record low share price of $42.79 fro m a high of $108 in 2000 for the company. Just two years into the merger performance was plummeting. The BBC (2000) also revealed that in contrast the merger of equals the Daimler chairman, Jurgen Schrempp actually viewed Chrysler as a division of Daimler and not as a partnership. As eluded to above, Schrempp directed Chrysler as a European company by replacing Jim Holden, the Chrysler president with Dieter Zetsche. Forcing this European style programme of change was greatly contested and fuelled disengagement from staff at Chrysler. Through Scheins (2010) theory of The Organisational Iceberg it is clear to isolate culture as an area which can be one of the most challenging barriers to introducing change. Schein (2010) attributed culture as part of the informal organisation which influences values, beliefs and conflict. If this is not confronted then attempt to integrate change will become extremely difficult (Senior and Swailes, 2000). Gertsen et al (1998) proposed that this fierce resistance to change was due to the fact that employees emphasise cultural differences to demonstrate their distinctiveness and social identity. Hofstedes (2002) Cultural Dimensions Theory found that culture within different organisations was influenced by which country they resided in. He developed the dimensions of national cultures which consisted of the power distance index, individualism versus collectivism, uncertainty avoidance index, masculinity vs femininity, long term orientation versus short term orientation and indulgence versus restraint. Hofstede (2002) found that these dimensions all varied in organisations depending on what their national identity was. From this it is clear to appreciate the huge problem of attempting to amalgamate a European and an American culture as there are so many variables. Daimler was very rigid and bureaucratic with Chrysler in contrast being much more informal. Daimler and Chrysler by their very cultures were incompatible, stressing the need for an effective change management programme. Haslam and Ellemers (2005) believed that there was positive correlation between the level of employees social identification towards the organisation and performance. It is apparent that a key reason for DaimlerChryslers drop in share price in 2000 was due to many of Chryslers employees seeing little association with themselves and their counterparts of Daimler. The companies in isolation varied in so many ways. For instance Daimler had a brand image of being a high end luxury brand while Chrysler was a low end cars and trucks manufacturer. These contrasts meant defining the very identity of the merger was plagued by paradoxs which meant both employees and customers failed to connect to DaimlerChrysler. Daimler had instilled a great emphasis on the operational and business synergies of the merger, seemingly ignoring the implications of culture. Human Resource Management The investment decision is one that is integral to any success of the allocation of capital by a company. Pike et al (2012) stated that the investment decision is the decision to commit the firms financial and other resources to a particular course of action. With culture being the predominant factor of the DaimlerChrysler mergers demise, the HRM policies of the chairman at any given time were equally responsible. Daimler had envisioned lucrative rises in profit yet they failed to invest in a strategic human resource management process which would introduce the desired change in an effective manner (Gaughan, 2005). Schuler and Jackson (2001, p.239) attributed the importance of HRM to the interpretation that companies today need to be fast growing, efficient, profitable, flexible, adaptable, future ready and have a dominant market position. HRM is critical to implementing these factors which the DaimlerChrysler merger had lacked greatly, providing evidence as to why in the 21st cent ury specifically that they crumbled. The transition of management and integration must be done in a systematic and people orientated approach (Schuler and Jackson, 2001). The HR issues associated with mergers can be categorised into two unique phases; Pre-Merger: Involves an analysis of the cultural differences and other issues such as the impact on employee morale. This stage reinforces the need for human resource planning as such an analysis would demonstrate major challenge. Solutions to such difficulties would be to modify the recruitment and development process whilst introducing specific appraisal systems. The protracted difficulties would be allocated an effective change management plan by the HRM department. However, Daimler critically undervalued this crucial aspect of a potential merger, which would have long term effects as explained. Post-Merger: The reality of the impact of the merger on HR related areas is revealed at this stage. The diverse HRM practices can uns ettle staff, with Chryslers staff resenting the European style of management, resulting in high levels of intransigence. Such emotional reaction diverts staff focus away from productivity, contributing heavily to laboured performance. The workshops devised by Daimler were not extensive enough to combat the massive cultural gap. It is imperative that strategic HRM is implemented to adjust a companys HRM strategy to that of the business strategy. For example Cisco has a culture constructed around risk taking and ambition. If they find that a protracted merger does not embody these values then they will refuse to force their culture on to a company, abandoning the prospect of the merger, such is the scale of problems which culture can present. There was also serious contemplation of separate headquarters such was the dismal level of communication between the two firms. Directions need to be from a centralised power source who is respected with Handy (1993) suggesting that this was t he ideal way to assume control and maintain effective decision making. Chryslers flat structure when compared to Daimlers hierarchical structure made it extremely difficult to initiate any HRM directives as both companies had different ways of doing so. The post-merger stage caused unprecedented difficulties for the merger as a result of little pre-merger analysis being undertaken. The cross-cultural differences were allowed to manifest into a massive concern with both Schrempp and Zetsche underperforming in their roles as chairmen of the merger. They distinctly did not commit their resources to developing training programmes which would have aided the alignment of Chryslers staff to that of the overall vision of Daimler. Tannenbaum and Yukl (1992) firmly contested that staff training was an area which should be reviewed regularly to ensure staff are being trained in accordance with the strategy of this business. Daimler did initiate HRM policies, but there was a lacking in depth. R egular staff appraisals and cross cultural learning days would have been methods of narrowing the gap between culture (Tannenbaum and Yukl, 1992). Conclusion From analysing the development and subsequent failure of the DaimlerChrysler merger it is abundantly clear that HRMs involvement in the change management process is integral. To overcome cultural issues, a tailored strategic HRM policy must be implemented such is the formidability of cultural factors. Daimler failed to realise just how potent the resistance of change can be and that as explained, originates from the informal structure of a company. It is undeniable that the Daimler and Chrysler merger had the potential to dominate the automobile industry due to their individually established size and profit margins. However, it was a mammoth failing as the two companies in reality were never able to amalgamate into a single corporate identity. AOL and Time Warner was a similar failing with the $164 billion deal eventually resulting in Warners stock diving by 80% (Bewkes, 2010). AOLs problem was that they did not anticipate that wireless internet and other relevant technology would revolutionise the broadband industry. They failed just like Daimler to analyse their threats and assess whether such a merger was of value. The Daimler and Chrysler merger was only a failure because Daimler underestimated the power that culture can forge. Strictly speaking, the merger for both companies was disastrous due to the stark culture gap, but equally so, this challenge was not managed effectively by the relevant departments. Perhaps the collapse of this huge merger can be embodied by Daimlers chief of passenger cars, Juergen Hubbert who is quoted as saying we have a clear understanding: one company, one vision, one chairman, two cultures (The Economist, 2000). Reference List Barnes, B. (2008) Disney and Pixar: The power of the prenup. The New York Times. [Online] Available from: BBC. (2000) DaimlerChrysler shares hit new low. [Online] Available from: Bewkes, J. (2010) AOL merger was the biggest mistake in corporate history, believes Time Warner chief Jeff Bewkes. Telegraph. [Online] Available from: Gaughan, P.A. (2005) Mergers: What can go wrong and how to prevent it. New Jersey: John Wiley Sons, Inc. 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