The Benefits of Virtual Meetings Essay Example | Topics and Well Written Essays - 250 words

The Benefits of Virtual Meetings - Essay Example By comparing the merits with the demerits, business people can determine the viability of using a virtual meeting platform. Travel - Virtual meetings negate the need to travel, saving days out of the work week that would have otherwise been sent traveling abroad to present reports. The removal of travel costs also makes the method less expensive. Improvement in B2B businesses - The use of virtual meetings makes it easy for businesses to set up a cordial working relationship, as the virtual meetings encourage constant interaction. As a result, the relationships between businesses improve, and trade blossoms (Wilson, Valencia & Smith-Bindman, 2014). Cost and learning curve – Not all people or businesses can afford to set up an effective Virtual Meeting system. Even when they afford, getting the best out of the virtual meeting program will take a lot of time to familiarize (Wilson, Valencia & Smith-Bindman, 2014). AS such, it can get on the nerves of those who have short tempers, or even embarrass them. Participation Values - The use of Virtual Meetings does not assist the people who have problems with participation. In fact, the performance of such people lowers when they use a Virtual Meeting medium. As such, it may not assist in bringing the best results. As such, it becomes evident that Virtual Meetings have their advantages and disadvantages. However, an assessment of the demerits reveals that they can be easily dealt with if the system is created in an organization, through training. As such, I would recommend businesses to consider them medium as an effective communication

Logistics management and international logistics management

Logistics management and international logistics management The literature overview relates to the problem area occur when the penetration to foreign market presented in chapter one. Firstly, I will describe definition of logistics management and international logistics management. Second, I will thrash out the reason of a logistics management start international operations. Further, I will talk about theories regarding the market selection. Next, I will present the different types of channels of distribution and the process for choose a representative in the foreign market. Lastly, I will end this chapter with environmental of logistics. 2.1 LITERATURE OF INTERNATIONAL LOGISTICS MANAGEMENT Definition of logistics management and international logistics management Generally logistics refers to the inbound and outbound flow and storage of goods , services, and information within and between organisations (Gundlach et al, 2006). The Council of Supply Chain Management Professionals (CSCMP), which is the pre-eminent professional organisation for academics and practitioners in the logistics field, formed in 1963, defined logistics management as that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods ,services, and related information between the point of origin and the the pont of consumption in order to meet customers requirements (see www.cscmp.org) This definition has resulted from numerous changes in the process to understand logistics (see Table 1). Table 1: The Development of Logistics Management (source) Period Development Prior to the 1980s Logistics was primarily concerned with the outbound flow of finished goods and services, with an emphasis on physical distribution and warehouse management. As a managerial activity, logistics focused on its role to support an organisations business strategy and to provide time and place utility. During the 1980s The industry globalisation and transportation deregulation led to the expansion of logistics beyond outbound flows to include recognition of materials management and physical distribution as important elements. In 1986, CLM (now CSCMP) defined logistics as the process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods, and related information flow from point of origin to point of consumption for the purpose of conforming to customer requirements (see www.clm1.org). During the 1990s Logistics was defined as the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory and related information flow through the organisation and its marketing channels. The definition was changed as a result of accelerated market changes due to shrinking product lifecycles, demand for customisation, responsiveness to demand, and increased reliance on information (Christopher, 1998). During the 2000s These years experienced further changes as to how logistics is defined. Development in international trade, supply chain management, technology and business process re-engineering generated a need to re-evaluate the logistics concept. As a result, in 2001, it was defined as that part of supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customer requirements. * Adapted from Gundlach, G.T.; Bolumole, Y.A.; Eltantawy, R.A. and Frankel, R., (2006), The Changing Landscape of Supply Chain Management, Marketing Channels of Distribution, Logistics and Purchasing, Journal of Business and Industrial Marketing, Vol.21/7, pp 428-438. The internationalization process of logistics is the best way that a supplier in one country are transferred procurement, transportation, storage, processing, collating, distribution, marketing and information are tied in and commodities to a demander in another country with the lowest cost and minimum risk, keeping goods quality, quantity and timely. The essence of Internationalization of logistics is the principle of collaboration with the international division of labors in accordance with international practice, the use of international logistics networks, logistics facilities and logistics technology and achieve global flows and exchange of goods and services to promote regional economic development and the optimal allocation of resources in the world (YANG 2003). 2.2 CHANGE AGENT A change agent is an event, organization, material thing or, more usually, a person that acts as a catalyst for change. In business terms, a change agent is a person chosen to bring about organizational change. Corporations often hire senior managers or even chief executives because of their ability to effect change. An internal change agent is usually a staff person who has expertise in the behavioral sciences and in the intervention technology of OD. 2.2.1Internal Change Agents Internal change agents will affect the organization from within. These are  individuals working for the organization who know something about its problems and has experience of improving situation in the same organization .The entry of new employee can view as the possibilities of prolonging the life cycle for a goods via internationalization. 2.2.2External Change Agents External change agents are those that have influence on the organizational from the outside. These are outside consultants who are temporary employed in the organization to remain engaged only for the duration of the change process. External change agents usually do not implement plans or take responsibility for decision making. Supporting change leaders and programming and project teams in negotiating the transition between the current state and the desired future state is the preoccupation of external change agent. External change agents facilitating, through coaching, mentoring and knowledge transfer, the development of new skills and behaviour in others. 2.3 Motives for foreign expansion There are many reasons for a company going expand to foreign country. Most of them are market related. The market related motivations to expand their business divided to proactive and reactive motivations. Proactive motives are motives that stimuli organizations to attempt strategy change, based on the firms interest in exploiting unique competences or market possibilities. Reactive motives are motives which the organization not influence over the threat or pressures and adjust passively to them by changing its activities over time. Czinkota Ronkainen indicate that proactive organizational go international because they want to, however, reactive organizational because they have to. Several disadvantages will occur when an organization operation in a foreign market compared to the domestic competitors. As a result, an organization must build some advantages to get established in the new market compared to the domestic market. 2.3.1 PROACTIVE MOTIVATIONS FOR LOGISTIC MANAGEMENTS Accordingly to Ross,1995, proactive motivations occurs when the enterprise make a decision to expand their operations into foreign markets. The proactive motivation are defined as Profit advantage Products Exclusive information Managerial urge Tax benefits Economies of scale Usually, an enterprise perceive that internationalization will provides a great opportunity of increasing profits, which also the most well-known reason for internationalization . An enterprise will produce a product or service ,which is not readily existing in foreign markets. The product or service may be very attractive on foreign market, due to technological advantages of the production process, which gives the enterprise gain a competitive advantage over the domestic enterprises.(Czinkota Ronkainen,1995) The next reason for export is that numerous enterprises realized the home market is too small and cannot afford to extend product at domestic market. Besides that, an enterprise may also acquired knowledge about the foreign market than other competitor which do not have. Thus, enterprise will initiate steps towards the internationalization process. Further, when an enterprise start to export, the domestic government may exploit the tax benefit to the enterprise. Lastly, an enter prise can obtain economies of scales as their advantage through export activities. The economies of scales means produce larger volumes then will diminish the cost per unit produced. 2.3.2 REACTIVE MOTIVATIONS FOR LOGISTICS MANAGEMENT When the domestic industry outlook is not attractive, the enterprise will try to penetrate foreign market, to decreased their resource commitments at domestic country. The reactive motivation are defined as: Competitive pressures Overproduction Declining domestic sales Saturated domestic market Excess capacity Relationships Unsolicited order The high competition on the domestic industry or overproduction during the economic decline, might affect the enterprises profitability. Thus, the enterprise try to seek new markets abroad. Declining domestic sales occur when a product reaching the declining stage of the product life cycle and a saturated domestic market will lead an enterprise to export their product to foreign market, in order to prolong the lifetime of a certain product. Additional, if the enterprise has excess capacity ,internationalization may aid the enterprise in reaching the desired production level in order to reduce the fix cost per unit produced.(CzinkotaRonkainen, 1995) .On top of that, some enterprise want to maintain or defend its position in a particular business network, therefore, they may be enforced to face internationalization process..Last but no least, the enterprise may fit into exporting sector because of the unsolicited order. 2.4 FOREIGN MARKET MODE OF ENTRY A foreign market mode of entry is a channel which enables the enterprises product, human skills, management, technology or other resources, to enter into a foreign country. The choice of market entry mode is a vital strategic decision for firms intending to carry out business overseas. A number of definitions of different modes of entry exist. Hedman (1993) classifies the modes of entry as indirect , direct and alternatives to export. However, Hedmans model does not assume joint venture as entry mode ,which other authors such as Jeannet Hennessey,1988;Root 1994b;Ross,1995 identify as an entry mode.Joint ventures will be presented under heading 2.4.3.4. Most models of foreign market mode of entry is due to limited resources , therefore ,enterprises initially penetrate a foreign market through indirect export methods. Indirect paths to internationalization are those whereby small firms are involved in exporting, sourcing or distribution agreements with intermediary companies who manage, on their behalf, the transaction, sale or service with overseas companies (Fletcher, 2004). Export intermediaries play an important middleman role in international trade, linking individuals and organizations that would otherwise not have been connected (Peng and York, 2001, 328). Small and new ventures use intermediaries toovercome knowledge gaps, find customers and reduce uncertainties and risks associated with operating in foreign markets (Terjesen et al., 2008) The mode of entry will switches to direct export such as agents, distributors, and sales branches, when the enterprise becomes more dynamic in international business. Direct export known as the producer will conduct the distribution activities to a foreign agent or importer or to the end customer directly Selecting the channel of distribution is a long-term strategic decision and need to build long-term relationships and the necessity of stimulating cooperation among distribution alliance partnersMehta et al., 2001 R. Mehta, T. Larsen, B. Rosenbloom, J. Mazur and P. Polsa, Leadership and cooperation in marketing channels: a comparative empirical analysis of the United States, Finland, and Poland, Int Mark Rev 18 (2001), pp. 633-666. View Record in Scopus | Cited By in S. Distribution channels defined as the external contractual groups that firms cooperation to accomplish their distribution objectives (Rosenbloom, 2004 B. Rosenbloom, Marketing channels: a management view, South-Western, Mason (OH) (2004).Rosenbloom 2004). The chosen channel will affect the enterprises effectiveness and efficiency for as long as it is operating (Doyle, 1994). As a result, the enterprise should plan a long-term strategy and evaluate the own enterprisess future economical abilities, before select distribu tion channel. 2.4.1 INDIRECT EXPORT Indirect export is a chain that connect with the exporting enterprise with a domestic middleman in the target foreign country and link to the end customer as a final point(Akhter,1996). Export intermediaries often help their clients to identify customers, financing and distribution infrastructure providers (Balabanis, 2000). Intermediaries also help firms in overcoming knowledge gaps of the local market , reduce uncertainties and risks associated with operating in foreign markets. Firms may hire export intermediaries because they perform certain functions related to exporting without large investments, with low start up costs and few risks better than the firm itself could. Firms may hire export intermediaries because they perform certain functions related to exporting better or at lower costs than the firm itself could, for example because they possess country-specific knowledge that the firm lacks (Li, 2004) . For this reason Peng and Ilinitch (1998) argue that manufacturers may be more likely to use intermediaries when entering foreign markets. Export intermediaries can also help firms to save costs associated with searching new customers and monitoring the enforcement of contracts (Peng and York, 2001) as well as to help access intermediaries contacts, experience and knowledge of foreign markets (Terjesen et al., 2008). According to Hedman (1993), indirect export may work in three ways: through a trading firm ,an export merchant and an export agent. 2.4.1.1 Trading firm An export trading firm is an alliance among a few local small and medium enterprise (SME) to export their product to a target country. They will do export as teamwork to developing and penetrating a target country rather than do it single-handedly. Those firms cooperate to reduce export costs and risks while can develop market research to find new export business opportunities Firms that team-up for exporting can negotiate favorable rates on transportation, insurance and other export services .However ,a trading firm is independent when it operate in a foreign market(Hoagland,1996) 2.4.1.2 Export through an export agent Export agent is buyers in foreign countries who will buy products from enterprise and sell it abroad in their country. The agent usually awards the lowest bidder with the order and sell it with receives commission as compensation for their effort. Normally, the payment for export agent is received almost immediately plus there is very little effort required to complete the sale. Therefore, the manufacturer can get access to a larger market with minimum cost and risk . The manufacturers reputation is the largest risk when the manufacturer choosing export agent in foreign market. The manufacturer absolutely looses their control of the export activities after they select an export agent to help them sell their product in foreign market. 2.4.1.3 Export through an export merchant An export merchant acts as a kind of international wholesaler (Ross,1995). An export merchant seeks out needs in foreign markets and negotiates with a manufacturer. After makes purchases from manufacturers, the goods are exported to the waiting buyer. After having the merchandise packed and marked to specifications, the export merchant resells the goods in its own name. The export merchant normally specializes in a particular line of products or in a particular geographical market area where they have been operating during a longer a longer period. Sometime it sells the goods with the original suppliers labels or puts its own label. 2.4.2 Direct export Direct export may be conducted in three ways: (1) directly to the final customer,(2) with the help of a representative or (3) through the exporting enterprises own establishment (Hedman, 1993). The enterprise will confront with higher investment risks when they conduct export their product through direct link to foreign country. On the other hand, the enterprise may gain potential profit margin and the cost for transaction between home country n host country will drop. 2.4.2.1 Export directly to the final customer When conduct direct export without going through an intermediary in the home country to develops an overseas channel so that it deals directly with a foreign party, the exporting enterprise takes hold of all exporting activities. Therefore, they have to conduct their marketing research, investigations, transportation and documentation (Young et al .,1989 ). The advantages of directly to final customers is active market exploitation and greater control to the transaction in the host country. On top of that, the channel also improves communication and consistency. However, it is a difficult channel to handle if the manufacturer is unfamiliar with the foreign market and causing time consuming and expensive. 2.4.2.2 Export through a representative Export through a representative have played a crucial role in the development of the internationalization process. A representative is an intermediaries in the foreign market which have their own market organization that separated from the exporting enterprise . The company can determine to adapt the quantity of the home-based sales representative travel abroad at certain times to take orders or find business. Those enterprise want to penetrate the foreign market but afraid of the risk can find an experienced intermediaries to help them start their operation in foreign country. This is because those intermediaries obtain the knowledge about the country and may efficiently locate the product to the final customer. Agent An export agent, is an intermediary or trading company that acts on behalf of a company to open up or develop a market in a foreign country. However, the agent does not take title to the products and gives the exporter to take part in the planning and monitoring of the marketing activities. Export agents usually paid a commission on all sales and may have exclusive rights in a particular geographic area. A good agent will know or get to know local market conditions, which the exporting enterprises lack. An agent just carrying out part of the operations on behalf of the exporter, the exporter owns the product until it is sold to the final customer. The exporter has responsible for the customers risks because of the agent does not do not handle the products .The role of the export agent is to evaluate the export potential of the local manufacturers products, advertise them abroad, look for foreign buyers, place orders with the manufacturer, or arrange for, the documentation, take care of shipments and insurance once a sale has been made. Distributor Distributor is a firm located in the foreign market that purchase goods, re-label them with their own name, brand or trademark and then sell them as their own products. Foreign distributors are the backbone for many export manufacturerBello, D.C. and Lohtia, R., 1995. Export channel design: the use of foreign distributors and agents. Journal of the Academy of Marketing Science 23 2, pp. 83-93 Full Text via CrossRef | View Record in Scopus | Cited By in Scopus. These export intermediaries possess crucial contacts with foreign buyers, strong local-market knowledge, and the ability to provide sophisticated marketing services. Distributors usually has a close relationship with the exporter and given the exclusive right to sell the product. They typically provide complementary services to their buyers, such as maintenance, parts sales, and technical assistance. On top of that, the distributor will assist the export enterprise by running processing orders, stock foreign inventories, grant buyer credit n delivery. Entering foreign market with using distributors is less risky and payment will get directly after transaction. This methods allow SMEs with limited resources to operate in major markets and companies with significant resources to offer their products and services in smaller markets. 2.4.2.3 Export through an own establishment Export through an own establishment usually is a company-owned export department for a enterprise sells their product directly to companies or final customers in the foreign market.The enterprise has full control over export activities such as the marketing and distribution of its goods and services, and coordinates research, distribution, sales, marketing, pricing, and legal. This department usually consists of an export sales manager with some clerical assistants. Export through an own establishment is an expensive way but very effective for enterprise to conduct their business in foreign market. Sales office An enterprise starting a sales office in a foreign market have to be establish new relationships in the foreign business network .Enter a foreign market with sales office is very costly n time consuming. This is because establish a sales office in foreign market required a high level of resources n effort into the market. , however, it is the best way to enterprise to obtain the knowledge of the local market. Branch A branch office established facilitate sales in the foreign market . They is an intermediary who selling products and providing support services to the manufacturers sales force .A sales branch allows the manufacturer to achieve greater presence and programme control in the foreign market. The role of sales branch handle sales is distribute product and managing warehouse and promotion. It often serves as a display centre and customer service centre in the foreign market. However, there are no manufacturing is done at this location. Subsidiary An export sales subsidiary basically removes the export function from the parent company and places the function in a separate wholly owned subsidiary. The export subsidiary purchases goods from the parent company, then resells it on their country. Export subsidiaries is able to add products from outside the parent company in order to round out its product line, and is able to separate out costs and expenses more efficiently than an internal department. On top of that, export subsidiaries can also develop into centre of excellence, controlling critical resources that other parts of the MNE depend upon Holm and Pedersen, 2000 U. Holm and T. Pedersen, The emergence and impact of MNC centres of excellence, A subsidiary perspective, Macmillan Press Ltd, Houndsmills (2000).. 2.4.3 Alternatives to export A lot enterprise realized the importance of expanding their business internationally. However, there are several obstacles to internationalization for firms in the developing world. One of these is a lack of information and knowledge about foreign markets. In such case, licensing or franchising might be the right choice (CzinkotaRonkainen, 1995). 2.4.3.1 License manufacturing Licensing is another easy way to for a manufacturer to involve in international marketing with a limited degree of risk. Licensing occurs when an enterprise within the foreign market, the licensee, make an agreement with the licensor who offering the right to use a manufacturing process, trademark rights, patent rights, or trade secret of value for a fee or royalty. The licensee will produce the licensors products and market these products in his assigned territory. After that, the licensee will pay the licensor royalties related to the sales volume of the products. The producing enterprise hereby escapes expensive toll and other trade barriers, exchange fluctuations, high transportation costs and political risks(Root,1987). The disadvantage of licensing is the firm has less control over the licensee than if it had set up its own production facilities. After few years, once the know-how is transferred, the foreign firm may begin to act on its own and the international firm may theref ore lose that market. Therefore, the licensor must establish a mutual advantage in working together, and a key to doing this is to remain innovative so that the licensee continues to depend on the licensor. 2.4.3.2 Franchising Franchising is an entrepreneurial activity that plays a crucial role in the creation of new jobs and economic developmentFalbe et al., 1998 C. Falbe, T. Dandridge and A. Kumar, The effect of organizational context on entrepreneurial strategies in franchising, Journal of Business Venturing 14 (1998), pp. 125-140.. In franchising, an exporting enterprise collaborates with a franchisee-entrepreneur to create economic value in a prescribed manner. The franchisee obtains the right to use franchisers, brand name, and marketing techniques to market goods or services. In return, the franchisee pays an up-front fee and ongoing royalties to the franchiser. Franchisees usually operate in local markets and communities, therefore, they can provide local knowledge to penetrate the foreign market. Thus, franchisees bring to the franchise system not just financial capital, but also a knowledge of geographic locations and labour markets, and their own managerial labour; that is they represent an effi cient bundled source of financial, managerial and information capital Dant, R.P. and Kaufmann, P.J., 2003. Structural and strategic dynamics in franchising. Journal of Retailing 79, pp. 63-75. Article | PDF (157 K) | View Record in Scopus | Cited By in Scopus (24) ( Dant, R.P. and Kaufmann, P.J., 2003. Structural and strategic dynamics in franchising. Journal of Retailing 79, pp. 63-75. Article | PDF (157 K) | View Record in Scopus | Cited By in Scopus (24)Dant and Kaufmann, 2003). The franchising tends to be more directly involved in the development and control of the marketing program. The main disadvantage of franchising is the level of the standardization of the product and service. Without a standardization there might be a risk of losing transferred know-how. (Hackett,1979) 2.4.3.3 Foreign direct investment(manufacture) Foreign market investment is the direct ownership of facilities in the foreign market. There are two ways for enterprise to enter foreign market through investment. The first option is make a direct acquisition or merger in the host market. The second option is develop its own facilities from the ground up. The reason that the firm invest in the foreign market may be the production in the foreign market is much cheaper . On top of that, the firm develops a deeper relationship with government , customers and local suppliers, so that make a better adaptation of its products to the local marketing environment.Glass and Saggi, 2002b A. Glass and K. Saggi, Licensing versus direct investment: implications for economic growth, Journal of International Economics 56 (2002), pp. 131-153. 2.4.3.4 Joint venture Joint venture is a contractual agreement between an international enterprise and foreign enterprise to execute a particular business. According to Fletcher and Brown (2004), joint venture is a second broad method of entering a foreign market to set up production and marketing facilities. in common with licensing. In joint ventures, the international firm has an equity position and a management voice in the foreign firm. Therefore, international firm better control over operations and also access to local market knowledge. The international firm has access to the network of relationships of the franchisee and is less exposed to the risk expropriation thanks to the partnership with the local firm. Previous studies (e.g., Blodgett (1992) L.L. Blodgett,Factors in the instability of international joint ventures: An event history analysis, Strategic Management Journal 13 (1992) (6), pp. 475-481. Full Text via CrossRefBlodgett, 1992; Geringer Hebert,1989; Merchant Schendel, 2000) have show n that equity ownership in a joint venture is an important determinant of its performance. This is because if the partner has different strategy than the international enterprise, it may lead to conflicting interests.

Free Essay - Good Vs. Evil in The Adventures Of Huckleberry Finn :: Adventures Huckleberry Huck Finn Essays

Free Essay - Good Vs. Evil in The Adventures Of Huckleberry Finn      Ã‚  Ã‚  Ã‚   On important theme within The Adventures Of Huckleberry Finn is the struggle between good and evil as experienced when Huck's personal sense of truth and justice come in conflict with the values of society around him.   These occurrences happen often within the novel, and usually Huck chooses the truly moral deed.      Ã‚  Ã‚  Ã‚  Ã‚   One such instance occurs when Huckleberry realizes that he is helping a runaway slave.   His moral dilemma is such that he is uncertain whether he should or should not turn this slave, named Jim, over to the authorities.   Society tells him that he is aided a criminal, and that is against the law.   However, he has grown quite attached to Jim, and is beginning to realize that Jim is a really good person.   He would also never hurt him.   This illustrates the concept and symbolism of Jim's freedom and societies influence on Huck.      Ã‚  Ã‚  Ã‚  Ã‚   At one point, Huck convinces himself that the nest opportunity he receives, he will turn Jim in, and clear his conscience.   The opportunity became available when slave hunters meet them on the river.   Huck had an absolutely perfect chance to turn him over.   However, he made up a story that his father was sick and needed help and asked the slave hunters for help.   They immediately assumed that his father had smallpox, and he wanted nothing to do with Huck or his father.   Thus, he had saved Jim, and actually felt good about it.   Further along in the book, Jim becomes a slave again.   Huckleberry, with the aid of Tom Sawyer, free's Jim.   Once again, Jim's escape and freedom are more important to Huck than societies viewpoint.      Ã‚  Ã‚  Ã‚  Ã‚   The river is also important.   The river is symbolic of freedom.   It is also symbolic of good.   When Jim and Huck are rafting down the river, they are free of society.   They have no laws.   This is not to say that they are lawless, however, the laws they obey are there own.   This is in direct contrast to being on land, where society reigns supreme.   Land is evil.   This contrast also seems

Report on Financial Statement Fraud Scheme Case Study

Report on Financial Statement Fraud Scheme Case Study: The Importance of Timing ACC/556 Professor University of Phoenix December 19, 2011 Memo To: The Management From: Forensic Auditor Date: 12/19/2011 Subject: Case Study on the Importance of Timing and Financial Statement Fraud Scheme As our company is in process of conducting investigation to detect any financial statement fraud or abuse, I have come across the case where expenses were recorded in the financial statement under the period it was disbursed to vendor and actual services occurred in next or other financial year period.It’s against the regulation of SEC and GAAP guidelines. In this particular case the repair were completed in current year and vendor was prepaid for services in full last year financial period, which a violation by recording expenses in the wrong period. No one took the funds and commit fraud but it shows inaccurate expenses and revenue in financial statement for both current and past years. It was done to maintain the repair budget for last year as there was room to spend more last year , so the plant supervisor and purchase manager decided to pay in advance last year and actual services were occurred this year.As per scope of examination a company can lose a substantial amount of revenue through occupational fraud and abuse. There is several deterrence methods can be implemented by a company to avoid frauds and abuse by employees. This misleading financial statement fraud may impact our company’s investment potential, credit worthiness, business operation, and employee morale (Wells, 2005). The SEC Acts of 1933 and 1934 were passed by Congress of United States to provide sources of potential liability for accountants to ensure protection for investors and for facilitation of orderly capital markets (Lowers, Ramsey, Sinason & Strawser, 2007).These acts enforce accountability on accountants to practice integrity when working for clients and financial institutions by re porting misstatement disclosures in financial statements. As a forensic auditor I collect evidence from company’s employees, customers, vendors, and anonymous sources. The sampling tools and techniques used in this investigation consists systematic random selection of data from selected sources. The forensic accountant use computer forensics, data analytics and interviews to allow them to assemble much of the required evidence for an investigation.This abuse was detected when we see the invoice of heavy amount paid by end of the last year without any inspection report or repair completion document in file. The further investigation showed it was done later this year. No employee took any funds to commit financial fraud or larceny but the financial statement were misleading to the users of those statements. A company may experience such type of abuse or corruption schemes developed at any given time, more than one area or all over the company.Corruption can be performed by fra udster employees who intentionally and wrongfully use their influence to gain personal financial gain from company business transaction. It can be limited to a particular department or it may exist in all structural levels. It is vital for a company to review financial status routinely to ensure proper accounting and reporting procedures are followed in entirety of company business transactions. It is extremely important to review before an end of year transactions with heavy amounts to ensure validity of amount and services occurred in that financial year.There are many other red flags an investigator or auditor can find to detect such recording of expenses in wrong period. For example when there is an abnormal growth in number of day’s sales in receivable or decline in day’s purchases in accounts payable. These abnormalities and abuse can be avoided through reviewing acquisitions journal, general ledger and accounts payable master file to ensure that there are no lar ge or unusual amounts. Also review vendors’ invoices, receiving reports, purchase orders and purchase requisitions to verify that they are valid and are for reasonable amounts.Trace inventory acquisitions to the inventory master file to verify that items recorded as inventory are all valid. Trace receiving reports and vendors’ invoices to the acquisitions journal to verify that all received goods have been properly recorded. Compare transactions recorded in the acquisitions journal to the vendors’ invoices, receiving reports, purchase orders, and purchase requisitions to verify that they have been recorded at their correct amounts, date, and quantities.Other factors that aided in this investigation are from checking cash, and disbursement journal entries to be dated with the date of the check. The related monthly general ledger summary entries shall carry the date of the month summarized. Procedures that need to be implemented to ensure that fraudulent processin g of vendor invoices does not exists would consist of: †¢ Only original invoices being processed for payment †¢ Proper authorization obtained for price differences on invoices Proper authorization obtained for quantity differences on invoices †¢ Invoices received from authorized vendors †¢ Check stock should have pre-printed sequential numbers and logged in a register †¢ Separation of duty for printing and mailing of vendor checks †¢ Separation of duty for computer vendor master’s listing and updates †¢ Ensure merchandise is properly delivered to a company facility. †¢ Reviewing general ledger entries for unusual amount and date of the year.The substantive procedures to test effectiveness of internal controls for recording expense is to examine accounting records, reports, documents, control related activities, and client procedures. The implementation of above mentioned procedures will decrease the risk of fraud and abuse in an organiz ation. References: Wells, J. T. (2005). Principles of Fraud Examination. Hoboken, NJ: McGraw-Hill. Mulford, C. W. , & Comiskey, E. E. (2002). The Financial Numbers Game. Hoboken, NJ: John Wiley & Sons, Inc.

Organizational socialization Essay

Organizational socialization is a very important aspect in all organizations. It has been a lot of definitions, one is â€Å"the process by which organizational members become a part of, or absorbed into, the culture of an organization† (Jablin, 1982, p. 256). Another meaning that we have for organizational socialization is â€Å"the process of ‘learning the ropes,’ being indoctrinated and trained, and being taught what is important in the organization† (Schein, 1968, p. 2). Last but not the least, we have â€Å"the process by which a person learns the values, norms, and required behaviors which permit him or her to participate as a member of the organization† (Van Maanen, 1978, p. 67). Organizational socialization is evidently very important for growth and satisfaction not only in an individual’s job output, but more importantly it is essential to an organization’s growth towards innovation, job satisfaction, cooperation, organizational commitment, and ultimately organizational performance (Fisher, 1986). Even though organizations vary in their different natures, we must keep in mind that the nature of man and the dynamics of working as a group towards a common goal is what keeps all organizations united in the process of keeping its dynamics at its utmost best to come with the best results as they can with the given field of work they choose to follow. This is why so many people have come up with so many different theories with having the most ideal organizational socialization in their company. More importantly, this is why these different theories matter in the day to day encounters of people with in the company or any organization for that matter. Although the theories hold well in some practices in organizational development, practice of each theory in different settings will still vary and depend a lot on how each person will practice what theories present specially in organizational socialization (Tosi. et al, 2000 p3). Up to date, there have been a lot of studies pertaining to organizational socialization. A problem with these studies though is that so far, little research has been done to measure the specific settings and circumstances in which such socialization occurs (Ashforth & Saks, 1996; Jones, 1986). There was this one study, conducted by Ashforth, Saks and Lee (1998) that the examined the effects of three organizational context variables such as structure, size and job design. These variables were tested on the use of socialization tactics and the impact of these tactics on newcomer adjustment. This was particularly pretty helpful in t he field of organizational socialization to measure and compare the data gathered not only in the newcomer’s experience, but also to contrast each experience in varying fields. The study and application of organizational socialization is very important in the dynamics of the organizational processes also for many different reasons. One is that organizational socialization opens doors to behavioral changes that may occur from an employee’s entry point to being a key player in an organization or in a managerial or administrative role. Another is that the transitional view point of a worker in this process shapes an individuals’ growth, behaviors, decisions and even some key points that help shape the entrepreneurial process of an organization (Gartner, 1989; Stevenson & Jarillo, 1990). Another would be that specific role relationships within the person and key outsiders can be shown by viewing the influential outside constituents as socializing agents that can assist a newcomer in the formation of the firm he entered. Another would be that socialization literature such as orientations and the likes can identify the response of a new comer to the pressures of the environment of a new comer depending on the adaptability of each individual, henceforth showing the diversity of entrepreneurial experiences and new ventures (Gartner, 1985). Finally, the socialization perspective complements the environment of the newcomer by specifying the mechanisms that singles out those who cant fit with in the new environment. In the socialization process, the newcomers learn how to adapt and value the beliefs through social knowledge their new roles and function that they have to play in effectively in and organization (Aldrich & Zimmer, 1986). Van Maanen and Schein (1979) even developed a theoretical model of socialization which shows that socialization tactics used by an organization can influence the role orientation of a newcomer. Jones (1986) argues that a combination of six tactics form a socialization process namely formal, collective, sequential, serial, fixed, investiture or individualized. Jones concluded that institutionalized tactics encouraged newcomers to passively accept these established roles, while individualized tactics tend to encourage newcomers to develop their own approaches to playing their roles. According to some studies, there are specific socialization tactics in organizational socialization, Jones summarized Van Maanen & Schein’s 6 socialization tactics into a single polarity called institutionalized vs individualized dimension. He defined the institutionalized to be characterized by the common starting learning experiences. Due to the nature of this specified learning, it is sequential, fixed, collective, formal, and investiture. On the other hand individualized socialization is by its name, individual, random, informal, variable, and disjunctive and divestiture. This may be due to the nature of how it is learned by the new comer as it was defined by its characteristics. There are a lot of bases for adaptation of organizational socialization. In the motivational bases for adaptation, sociability of a newcomer is directly in line with the newcomer’s motivation to adapt to the expectations, norms and values that are already eminent not only in the organization members, but also in the structure of the organization. Intrinsic and extrinsic motivational factors also let new recruits attend to socializing with the older members and adjusting accordingly through their actions. Furthermore, man’s psychological make-up makes him have real qualities that will help him have the right motivation to learn to adapt to the new setting that he is in behavior wise. This is probably why individuals respond in organizational efforts differently which causes a personalized response to each new setting. In organizational socialization, the main goal of adapting as a newcomer is to reach the entrepreneurial stage. In the entrepreneurial process, this can be viewed as a way where in you determine where in you will to start out a career in the path you chose as a newcomer in the field that you entered. This process of adapting to the field that you entered can also be viewed as your initiation or stepping stone towards your will to start a business. Some literature has tried to link a relationship between the motivational factors driving entrepreneurial activity and firm performance, with limited success (Cooper & Gascon, 1992) Even though some studies show the motivation to adapt in the environment of entrepreneurial endeavors, the literature in the entrepreneurship world shows the typical entrepreneur as the innovator who has to be different from the people around him. In most studies present, there has been a small consideration of the motivational mechanisms, activities, circumstances, or encounters where imitation, accommodation, or compliance might be the critical survival response. Four motivational bases for adaptation to socialization pressures can be applied to the entrepreneurial context–Personality, Anxiety or stress reduction, Choice, and Rewards/Power. A big aspect you have to factor in an organizational socialization also is personality. The variable of the uniqueness of each personality is bound to affect the motivation to become socialized. An individual’s unique tendencies to respond to authority, his need for control, and feedback can affect the newcomer’s adjustment and accommodation process to the expectations of members around him. One example would be a newcomer with moderate self-esteem and self-efficacy beliefs will cause him not be afraid to explore the new role and seek feedback as the basis for learning how to behave appropriately, otherwise, his coping mechanisms will be different. In other cases when an individual with a strong self-efficacy concept may have the tendency to attempt to change the organization rather than adapt to the situation presented to him. In the entrepreneurial context, his need for achievement motivation has been manifested to be his driving force in his start-up process in the organization (Brockhaus & Hurwitz, 1986). The goal orientation, self-confidence, and independence that compel individuals to start new businesses may also be factors in the entrepreneurial socialization process. Another thing to factor in organizational socialization is the anxiety and stress levels of the new comer. The new comer’s capacity for anxiety or stress reduction is important given that it is only inevitable for a newcomer to face a lot of stress while dealing with the unfamiliar pressures of a given field he entered. Some people are even motivated but this kinf of tension created by a new setting that tend to let them seek out new information for a new learning experience. Through developing and adaptation to the new environment, they will be able to create a predictability and certainty. This will enable then to adapt to their new setting. In the entrepreneurial context, one’s ability to manage risk, and associated personal characteristics such as tolerance for ambiguity, are generally linked to new firm performance. Another important thing to factor in is the concept of choice. This is because a person’s motivation to adjust to a new setting will always be influenced by the newcomer’s choice and commitment he has to his new role. This choice is essential considering that this choice defines to what extent a new comer will be willing to adjust to. Also, if the new role is a role the newcomer preferred compared to his previous role, his inclination and motivation to succeed in the new role should be higher. Rewards and power also is another factor in organizational socialization. Tangible benefits and possible power holding roles can be a big motivation for a new comer to excel and be more adaptive to changes in his new environment. This aspect of motivation is an essential component of organizational socialization. This is because newcomers respond to organizational communications that specify role behaviors that can promise or lead to organizational rewards or career growth. Also, traditional sources of social influence and reciprocity, such as proximity, status, and affective interactions, may also motivate compliance. In one study, Dornblaser, Lin, and Van de Ven observed differences in the concerns and performance expectations of innovation managers and resource controllers in 16 innovation settings (Dornblaser et al. , 1990). In human resource procedures, most of the instructions regarding norms, values, standard operating procedures, skills related to the job and the likes are provided by veteran organization members. Organizational insiders act as socializing agents which serve as critical resources who may both be the reason for impediment or better adaptability of new comers in an organization. The person in charge of giving the orientation is in charge of providing the background history, informal practices, local culture and any other information that a newcomer will be needing to cope with the new environment. Due to this, the newcomer’s perception of the organizational experiences will rely a lot on the person in charge of introducing him to the organization. Through this orientation to the organizational structure, a newcomer will be able to adapt to the organization, despite this other current members may or may not also be cognizant that they serve as role models and information sources for newcomers. In the modern scenario of emerging organizations, given that there are a number of organizations setting a competitive scene, an entrepreneur must learn to respond or adapt to several incumbents representing multiple organizational contexts. Due to this, customers, suppliers, bankers, employees, and other members of the business community function as comrades who guide, and influence the new entrepreneurial recruit (Aldrich & Zimmer, 1986; Larson & Starr, in press). Mentioned here are some features of entrepreneurial networks which describe ways in which network members serve as socializing agents in the entrepreneurial setting. Typically, in organizational settings, there is normally more than one agent who influences the newcomer. The power of agents’ influence depends on several factors earlier discussed such as tangible reward power, frequency of contact, perceived legitimacy and expertise, explicitness of expectations, and the compatability between the expectations of the agent and the newcomer. Other agents such as colleagues, bosses, and subordinates surrounding the newcomer in his environment are very important in the process of organizational socialization. Although this area has not yet been explored, future research should be dedicated regarding the facilitation of better dynamics of all these agents in relation to maximizing the results of organizational socialization. In the entrepreneurial context, the powers in the dynamics of hierarchy are more subtle. Despite this it is still implicit in the negotiations and informal and legal contracts with critical stakeholders that they exist. (Gabarro, 1987). Ofcourse organizational socialization exists and is studied for a very good reason, this is done to achieve a better outcome not only of the newcomer in an organization but also for good output of the organization as a whole. Outcomes related to organizational socialization should ideally be measured to improve tactics on how to deal with newcomers for optimum results. Role orientation is ideally done in this process where in a newcomer will be briefed and equip to face the new challenges for his job. Given that a newcomer ideally fits in a fixed role in an existing organization, it is through this process that our new comer can accept the conformity of a position while practicing innovation that he needs to display in wanting the best for his growth and that he wants to impart in the organization that he is taking part in. Organizational Politics is also an intricate issue that managers should deal with in orienting a newcomer for his proper adjustment to the organization. This is where managers orient acquired employees by specifying clearly the job hierarchies and the reporting relationships associated with different jobs in the firm and its component groups. In doing this, the newcomer can easily distinguish his superior from his subordinates and more importantly, to whom he should regularly report to. It is through this formal communication that organizations can avoid confusion within operations and its structure. This can also be where a new comer can view the organization structure so that he can be motivated and set his work and goal towards climbing up the organizational ladder. Another important aspect of organizational socialization is the technological advances that now innovate the way we deal with organizations. Technology has now paved the way in the way run organizations especially in the way we store and communicate information. As compared to older and traditional means of running organizations, new age technology through electronic communication and information technologies, information is now disseminated faster at an even much lower cost that what used to cost organizations before. While more people offer increased data communications and more powerful technological capabilities, the advancement of the communication process has extended the number an variety of people involved in organizational decisions (Huber, 1990; Sproull & Kiesler, 1991), this happens because technological communications make it possible to diminish temporal and physical interaction constraints through online conferencing and the likes (Eveland & Bikson, 1988; Kaye & Byrne, 1986), it will also increase horizontal and vertical communication as everyone in the organization is easily accessible via the world wide web(Hinds & Kiesler, 1995).