Thursday, September 5, 2019
Environmental Issues in the Car Industry
Environmental Issues in the Car Industry What are the environmental issues facing the future of the European car industry? Abstract This paper looks at the issues facing the European car industry with regard to environmental issues. This is done by looking at past and present published material that revolves around the subject matter under specified themes. Theoretical perspectives within the European business environment such as pestle, models of market structure, profit maximisation, sources of finance, market segmentation, branding strategy, European business and its effects on the environment are all explained in relation to their relevance of environmental issues. These theoretical themes are used because they all act as a catalyst to the subject matter of the problems caused by cars which are not fuel efficient or less pollutant within Europe. In addition, a recently published paper on the directive for labelling on cars with regard to CO2 emissions, awareness of consumers, and fuel efficiency types in the European Union is used as empirical evidence to support ones findings as there was a shortage of time to carry out one. Finally a critical review of matches and miss-matches is used to compare and contrast similarities between the theoretical perspectives identified to prove the latter mentioned and the empirical evidence gathered for this paper, so as to forge a way forward for the European Car Industry. Chapter 1: A Brief History of The Car Industry Introduction The European Car Industry is one that has come of age. From its early beginnings over 100 years ago, it is beginning to show signs of struggling in todayââ¬â¢s modern society. This has come about due to the new challenges that the industry is facing in the new millennium. Issues such as air pollution, congestion, traffic jams etc., are all factors that have made the car industry rethink its goals, objectives, its marketing, and the consequences that are not foreseen. As a whole the car industry makes nearly 60 million cars and trucks every year, and employs millions of people around the world. Average profit margins have declined from 20 present or more in its hey days of the1920ââ¬â¢s to around 10 present in the 1960ââ¬â¢s and less than 5 present in this present day, infect some volume car makers such as Fiat, Ford, and Vauxhall, have actually been losing money. It can be stated that over century ago the car industry feasibly invented modern industrial capitalism. In the Economist (2004) the car started life in Germany and early development of the industry began in France (hence the word automobile, a French word) in the 1900ââ¬â¢s, but it was in America that the car industry came of age with the Henry Ford T-Model of mass production which started in Chicago round about the same period(1900ââ¬â¢s). In the 1920ââ¬â¢s Alfred Sloanââ¬â¢s ideas of running General Motors provided the model for the great corporations that grew up to dominate the second half of the 20th century. General Motors soon swept past Ford as Alfred Sloan revolutionized the young car industry, and Ford never regained the dominance it enjoyed in its infancy days of mass production. The car industry can be said to be ahead of its time in many respects. For example, in ââ¬Ëplanned obsolescence, which is the frequent changes in design and style that tempted customers to switch to a newer model every year or so. In the 1970ââ¬â¢s when the oil price quadrupled, the industry found itself under attack from environmentalists outraged by its products gas consuming and exhuming nature, (air pollution, etc.). It was also the first industry to come under government scrutiny, from safety concerns to environmental issues to antitrust worries in the days when General Motors had 60 present of its domestic market and could shut out competitors with a few well-chosen price cuts. However, when small economical and reliable Japanese Cars started to eat into Detroitââ¬â¢s market share, the American government imposed restraints on those imports. Soon afterwards, theca industry in Europe came under the same similar pressures and followed suit. Due to the sporadic recognition and existence as a pillar of industrial capitalism, the car industry also found itself at the mercy of trade unions in the 1920ââ¬â¢s and 1930ââ¬â¢s. Its workers increasingly pushed for trade unionisation in which a times the car factories in the Detroit area, the British Midlands, in Frankfurt, Germany, and the huge plants around Paris were the main battleground of the Class war. Although today trade union membership is still as high as ever, the power they wielded in the 1920ââ¬â¢s to 1970ââ¬â¢s has diminished immensely. Today, the motor car is the epitome of mass production, mass marketing and mass consumption, with some of the strongest brands in the world. For most households in rich countries, it is the second-biggest purchase after a house or flat, which makes the industry a pillar of modern industrial capitalism as earlier mentioned. Few other consumer goods industries depend so heavily on second hand market for their products. Now, understanding how the European Car Industry operates and the many pressures that it faces is essential to an understanding of the predicament the UK car buyers currently faces. Around 70 present of new cars sold in the UK are imported, with the great majority of these imports coming from the rest of Europe. The UK market is intrinsically tied into the pattern of car making and distribution across Europe. Thus the behaviour of the UK motor industry towards both its retailing and service partners and towards consumers is part of the wider behaviour of the European Car Industry. The industry can be said to be mature one. In virtually every country of North West Europe, the density of car ownership has almost reached its practical maximum. There are some opportunities for growth left in Southern and Central Europe, but they will be largely used up in the next few years. Following on, the consequences of mass production, and a slow introduction of cars that run on synthetic or alternative fuels has led to a rapid increase in environmental pollution, CO2 emissions, traffic jams, congestion, and human related diseases such as lung cancer, all of which are serious environmental issues, which the European Car Industry have found itself slow to adapt, change, amend and implement to the betterment of the wider society. This has led to directives and committees from the European Union to be setup to tackle the issued mentioned above and the latter. With this in mind a review of existing material that has been published in the press and journals will now be critically analysed. Chapter 2: Existing Literature Reviewed The need to galvanise and understand the unforeseen circumstances of mass car production and environmental issues in the European Union has been stressed by researchers for more than three decades. According to the Europa (2005), the EU is the largest automotive production region (34%) in the world and the industry comprises 7.5% of the manufacturing sector in the union. Direct employment by the automotive industry stands at about two million employees, while the total employment effect (direct and indirect) is estimated to be about ten million. It also adds that since the year 2001, the motor vehicle production has decreased in the European Union, from 17.2 million units in 2001 to 16.9 million units in 2002. The decline continued into2003, with 70,000 motor vehicles less being produced, compared to2002. This decline is due to the worsening of the macro-economic situation where consumer demand has been decreasing. Lagunas (2005)correlates with this by stating that motor vehicles have become the prime means of personal and commercial mobility in todayââ¬â¢s world. Growing prosperity has led to a spectacular rise in car use, phenomenon being repeated in the new member states which joined the Union in 2004. In China and other booming countries with looser anti-pollution rules than the EU, trends show major increases in private transportation. This success has generated serious concerns about the environmental effects of vehicle use, in particular traffic congestion, air pollution, traffic-related diseases, and noise. In addition Lagunas (2005) states that these concerns have led the EU to formulate the objective of decoupling economic growth from transport growth. The EU has come up with legislation and initiatives to drive the change towards cleaner cars while promoting sustainable transport modes and model shift. It goes on to state that the interest in cleaner, less polluting vehicles and fuel has grown rapidly in recent years. Emissions from petrol and diesel engines have been significantly reduced in the last decade, driven mainly by European legislation and will continue to be reduced. In elaboration Lagunas(2005) states that in the EU, almost 40 present of the transport sectorââ¬â¢s CO2 emissions are produced by the use of private cars in cities, CO2 emissions are damaging the environment and contributing to climate change; both petrol and diesel engines have their good and bedsides as regards emissions; engines working with diesel fuel emit lessCO2 than the ones working with petrol; on the other hand diesel engines are releasing more cancer causing particles in the air. Air pollution caused by car emissions has health impacts; problems include aggravation of respiratory and cardio-vascular diseases, asthma, and decreased lung functions. Gartner (2005) also argues that the effectiveness of the directive made by the EU relating to the availability of consumer information on fuel economy and CO2 emissions has been successful and gained momentum in some European countries but not all. Reasons being consumers lack awareness of fuel economy and environmental impacts of fuels as well as available information tools, in which one of the possibly ways to tackle this as stated by Gartner(2005) was to increase consumers awareness by standard equipment of new cars with fuel consumption indicators or cruise control. In addition Gartner (2005) argues that fuel economy and environmental impact are in general no major factor in vehicle purchase decisions and fuel consumption is mostly only important because of the cost, but not to environmental issues. ACNielsen (2005) agrees with this by saying when it comes to what influences consumerââ¬â¢s choice of car brand, manufacturers of luxury vehicles may be surprised to learn that image and prestige do not appear to be a top priority, in which engine size and environmentally friendly cars are regarded as the least important features to the Europeans when it comes to buying a car. Interest; however is growing slowing with a greater awareness of climate change and CO2 emission issues. Gartner (2005) also states that general awareness of label, poster/display and guide on CO2 emissions and fuel efficiency on cars is quite small and most of the information tools are not regarded as very informative or effective, although it can be said that this varies f rom one EU country to another. For example, in Austria, the label is regarded as the most informative and efficient element, compared to teak where the label was not assessed as effective in detail. In an article by the BBC (2002) it was argued that there are five major groups of car manufacturers in the world, they are General Motors, Ford, DaimlerChrysler Benz, Toyota, and Volkswagen. Of these only Toyota relies on one global brand name. All the others have a web of subsidiaries spanning the world. We must understand that the real reason why the car manufacturing firms are in business is to make money and maintain their prestige as a world class car manufacturer. To do this means they (car manufacturers) will have to constantly roll-out new models, with better gadgets, with performance and style. That is why, as Madsen (2002) argues, Volkswagen launched its luxury car, ââ¬Ëthe Phaetonââ¬â¢ to compete against the Audi, Bentley, Bugatti, and Lamborghini brands. This initiative was and is deemed as a risky push by the Group. However, the Chairman of the group Rd. Bernd Pischetsrieder argues that success would not be measured by sales volumes that the key was to enhance the Volkswagen brand. It was also argued by critics from within and outside the firm that the launch of the Phaeton, delayed the launch of the Audi, which is a car from within the group. However, he was quick to mute the negative by stating that possibly, the dealers learn to be a bit quicker and not to find the competitor in-house but out-house, and this will help the business; adding it is the engineers and marketers of the Audi brand that have the serious challenge of making sure that the brand does well. With this type of attitude within car firms it shows that environmental issues are the least likely concern within the European Car Industry. In the UK, white paper by DETR (2002) stated that many towns and cities suffer from traffic jams and polluted streets and as a result, are less attractive places in which to live and do business. Reducing the negative impacts of traffic on the quality of peopleââ¬â¢s lives is a key element of improving the urban environment, as set out in the governmentââ¬â¢s recent urban white paper. Adding that emissions of air pollutants arising from road traffic are set to decline over the period to 2010 as a result of improvement s in vehicle technology and fuel quality, but are forecast to begin rising again beyond 2010 due to increased traffic growth. Indirectly, an increase in car sales that are not fuel efficient means more air pollution, increased traffic jams, and lung cancer. However, in Europe the car market has become largely a market for replacement vehicles within a largely static market rather than one driven by a growing buyer base, Consumer association (2000). In addition, the market is crowded with over 40 marques and 250 models on offer and major product innovation is rare and rapidly imitated. Notwithstanding, product branding activity is intense and advertising spends are large and directed at creating a sense of differentiation. In another article by the BBC (2002) it was argued that in the UK, car prices were still too high and one of the major reasons for this was the ââ¬Ëblock exemptionââ¬â¢, which allows network of national or regional dealers selected by car manufacturers, to flourish. However, this (block exempt) has now been abolished byte European parliament. In another article by the BBC (2002), it was argued that the number of car manufacturing companies had shut down due to the fall in export demand owing to the euros weakness against the pound; this is in relation to the fact that 70% of cars driven on Roads are European Imports. In the Economist (2004), it was argued that out of the worldââ¬â¢s top 17 car compani es, only half were earning more than the cost of their capital. The value creators in Europe were Porsche, the Mercedes bit of DaimlerChrysler, BMW, and Peugeot. In Asia, Toyota, Nissan, Honda, Hyundai, and Kia made the cut. But Americaââ¬â¢s big three GM, Ford, and Chrysler, were all in the value destruction group, along with Renault, Fiat, Mazda, Mitsubishi, and. In the same article GMââ¬â¢s boss argues that the Japanese government is providing indirect aid to the countryââ¬â¢s car companies by holding down the yen, thereby lowering their costs of producing export models and parts for the American assembly plants and also in Europe. American and European manufacturers maintain that the Japanese do this solely to boost their exports; but it can be stated that the real reason for the Japanese government of implementing such a policy may have been to head off deflation and revive the domestic Japanese economy. In another article by Europa (2005) Verheugen, the vice-president of the European Commission responsible for Enterprise and Industry argues that a legal framework will need to be created via CARS 21 High level group, in which the overall objective is to make recommendations for the short, medium and long-term public policy and regulatory framework for the car industry that enhances its global competitiveness as well as employment, while sustaining further progress in safety and environmental performance at a price affordable to the customer. Corby (2005) also argues that the environmental performance of cars has been improved dramatically over the past decade. New cars have become more fuel efficient and they emit less toxic emissions than cars in the 1970ââ¬â¢s, adding that environmental innovation is essential for the sustainability and competitiveness of the European car industry. The previous mentioned shows that great changes are being made in the European Car Industry with regard to environmental issues. In a press release by the Auto Industry (2003), it was argued that new car average CO2 emissions fell to 174.2 g/CO2per km in 2002, 8.2 present down on the 1997 baseline and 1.9 present below the 2001 average. The rise of the superman in the UK over recent years has helped to lower average CO2 emissions through the wider appeal of smaller cars. In the same article, it was stated that Diesel fuelled cars have been a significant influence on the reduction in average CO2 emissions. Diesel models took a record 23.5 present share of the UK market in 2002, with demand up 38 present. In another published article by Lagunas (2005), it was suggested that the average new car in the EU ââ¬â 15 was releasing almost 12% less CO2 in 2003 than it did in 1995, however pressure was growing, especially from Berlin, to push automakers to make further cuts. In the same article, the German Advisory Council on the Environment (SRU), a government body, blamed the European commission for allowing car makers to exceed limit values for particulate matter (pm) and CO2. It criticizes the industryââ¬â¢s voluntary target to reduce emissions to 120 g/km by 2012 as being too modest, saying a target of 100g/km is achievable by that date. It therefore, proposes an ââ¬Ëinnovation forcing strategyââ¬â¢ to push carmakers embarking on the global competitive race for improved environmental performance of vehicles. Balzac (1998) adds to the furore that because the Yen is one of the leading international currencies, solving the problem (devaluation of Yen) requires international answers. In the same article, as the Car industry is considered one of the key industries in Japan and Europe, a devaluation of the Yen directly affects the European Car Industry. As mentioned in the latter sections a devaluation of the Yen enables Japanese car manufacturers to sell their cars at much lower affordable prices to potential customers in Europe, and North America, in which the European Car Industry would suffer the most due to a high value of the currencies within the European Union member states. With all this in mind, the remainder of this paper proceeds as follows: Chapter 3: Theoretical Perspectives on the European Business Environmentà and Marketing Chapter 4: Empirical Evidence. Chapter 5: Critical analysis of Theoretical perspectives and empirical evidence Chapter 6: Summary and Conclusion. Chapter 3: Theoretical Perspectives On The European Business Environment and Marketing In order to have a clear understanding of the concept of the business environment within Europe and the marketing of the car industry, we will first need to identify the meaning of the terminologies. European business is a generic term which describes Avery wide variety of agricultural, industrial and service activities undertaken by a large number of different organisations across the continent of Europe. Examples of European business might include: Privatised telecommunications companies such as Deutsche Telekom; a French recording company based in a converted barn in Normandy, France; a farm in Eastern England, highly mechanised and engaged in agribusiness; a transnational organisation such as the German car producer Volkswagen, with factories in Germany (VW and Audi), Spain (Seat), the Czech Republic (Skoda) and the UK (Bentley) etc. European business may be run by one person or it may be a small private company. Alternatively it may be a large organisation employing thousands of people, with assets worth hundreds of millions of euros and based in many different European countries. The European business environment refers to the conditions within which European businesses operate. Typically it involves a number of different interacting forces which shape the environment, and thus how a business formulates its long-term strategy, its tactics and its daily operations within this environment. These factors may include political, economic, social, cultural, religious and linguistic forces. Now, marketing is the social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Kilter et al. (2005). For example, important terms such as needs, wants, and demands; products and services; value, satisfaction and quality; exchange, transactions and relationship; and markets are all core marketing concepts which are linked, with each concept building on the one before it. Each part of the marketing definition defines what marketing is and how it is practised. With this in mind we can now move on to discuss about the theoretical concepts used in the understanding of the business environment and marketing of the European car industry. There are several important conceptual frameworks that are used for understanding the environmental impacts of the European car industry. The ones used in this paper are: â⬠¢ PESTLE â⬠¢ Models of Market Structure â⬠¢ Profit Maximisation â⬠¢ Sources of Finance â⬠¢ Market segmentation â⬠¢ Branding strategy â⬠¢ The European Business and the environment 3.1 PESTLE This means, Political factors influencing a business environment; Economic factors; Sociological influences; Technological influences; Legal factors; and Environmental/ethical issues. This framework issued to analyse the European business environment. 3.1.1 Political The political beliefs of governments and the policies they implement to pursue them have a major impact on the European business environment. This is both in their own right and also through other policies, such as economic ones; hence the re-emergence of political economy in recent years. Additionally, other political philosophies may also have an impact on EU society and hence on the business environment. In the extreme case the economic policies pursued by the former Soviet bloc, with its emphasis on central planning, clearly had massive impact on the ownership, organisational structure, operations and lack of profitability of government-owned European businesses operating in this area. Similarly, the UK Thatcher governments of the1980s created a business environment of entrepreneurship which was largely shaped by the political beliefs of Margaret Thatcher and her close advisors, which subsequently influenced other countries in Europe 3.1.2 Economic The economic policies pursued by EU governments clearly have significant influence on the environment within which European businesses operate. Since the signing of the Treaty of Maastricht was completed in 1993 EU currency (SEC), formerly called the European currency unit (ecru) but now known as the euro, as part of the moves to Economic and Monetary Union (EMU). The commitment by EU governments to meet the Maastricht convergence criteria, as a precondition for acceptance to the first wave of membership of the single European currency, has obliged them to demonstrate fiscal restraint to meet the criteria relating to budget deficit (not to exceed 3 present of the countryââ¬â¢s gross domestic product or GDP) and national debt (not to exceed 60 present of GDP). The purpose of the convergence criteria, as their name suggest, is to converge potential membersââ¬â¢ economies to broadly similar levels in terms of the rate of inflation, the level of long-run interest rates, and the stability of their exchange rates and, as noted, government debt. In addition the ability of countries to converge to a common position in their business cycles, in practice to converge their business cycles with that of Germanyââ¬â¢s as the leading Economy. In practice the problems of non-convergence were demonstrated in the early 1990s when Germany raised its interest rates to counter inflationary pressures. These had resulted from borrowing to fund major expenditure in Eastern Germany to redevelop the infrastructure and productive capacity after the collapse of the communist regime of the former East Germany. 3.1.3 Sociological This is examined in three broad areas: culture, language and religion. Culture: The fact that the British have a totally private sense of distance. This is most visibly seen in the shared pretence that Britain is a lonely island in the middle of an empty green sea. Culture has been described as ââ¬Ëthe way we do things round hereââ¬â¢. In this sense it may be viewed as the inherent values, attitudes, social conventions and mores of a nation. In most cases these are transmitted from one generation to another, usually through the family. Increasingly, however, culture is modified by education, the media and peer influences as the pace of change accelerates in modern society. Cultural differences contribute to the diversity of the people who live in Europe and hence are an enriching experience. Cultural differences can also create barriers, however, which in turn have significant implications for European Businesses since, if they are to succeed another than their domestic market, these differences must be taken into account. Examples of cultural differences are: the business organisation, in Germany businesses are rigid in their approach and expect everything to be done through proper bureaucratic channels with full technical detail provided. In contrast, British firms involved in collaborative ventures, or who have opened subsidiary companies in Germany, are more casual and relaxed enabling them to be more flexible when sudden response is needed to market change. This difference in operational philosophy can cause problems. Class is also a major factor in determining social attitudes in the business environment, particularly in the UK but also in other parts of Europe. In contrast, in less class-divisive societies such as Denmark, Sweden, and Norway attitudes may be quite different, people such as senior managers secretaries are regarded as important people in the organisation, whereas in the previously mentioned countries this would not be so tithe same extent. Business attitudes to delivery dates are also important. European businesses operating in Germany soon find that when they promise a delivery date for a new product consumers expect it in the shops on that day, not several weeks later Firms who slack on this simple rule find themselves bombarded with telephone calls-mails, and letters. In contrast, in Spain and Greece attitudes are much more causal in this respect; the personal appearance and behaviour, the French place much emphasis on establishing personal contact in business dealings and expect the people they deal with to have style. The Spanish believe in the importance of being smartly but conservatively dressed and demonstrating worldly knowledge, for example of good cuisine and wine; these are important issues when dining out, attending trade delegation receptions and so on, where business contacts are made. Scandinavians in contrast are much more casual in their dress; Cultural training programmes, these differences have implications for the training policies adopted by companies; some European businesses are now adopting recruitment policies where new employees are expected not only to have fluency in more than one language, but also to demonstrate some cross-cultural knowledge. Language: In the EU there are currently 13 EU official languages and another 35 territorial minority languages, which include Basque, Breton, Catalan, Cornish, Frisian, Galician, Letzeburgesh, Irish Gaelic, Occitan, Slovene, and Welsh. Language above all else defines group of people as distinct from all others in Europe, since it also implies culture, inherited knowledge and beliefs and terms of reference and thought specific to that group alone. In that sense there is therefore an overlap with the above. Different languages and dialects as a whole all create market differences. Religion: In the traditional Catholic countries of Europe, particularly Eire, Italy, Poland and Spain, the impact of formal organised religion on society and hence business is very important. Past controls on the sale of contraceptives in Eire are one such example. In Poland the Catholic Church has a vital role to play in the political scene with all parties having a commitment to Christian values in their policies. As a whole, businesses in Europe must bearing that increasingly the EU is becoming a society of many faiths. Certainly the large number of Jews resident in Europe has always been obvious. Now however many Muslims have entered EU countries and their religious and moral susceptibilities must also be heeded as much as another religion. 3.1.4 Technological Clearly technology has had a major impact on the European business environment, particularly information technology. The impact of its use will be so pervasive as to be hard to imagine life without it. This ranges from autopilots on aeroplanes to computer-controlled traffic management systems in our cities; from computer-controlled robots on factory assembly lines to screen trading in stock and foreign exchange markets; from the growth of consumer purchases via the internet to the use of e-mail rather than conventional letters or faxes. In this sense Bill Gates of Microsoft has argued that the internet will in effect act as a market-maker, bringing together buyers and sellers with minimum friction, and not just for goods and services but also in the Labour market. In 1994 the EU setup a first policy framework for the EU information society. These proposed initiatives to regulate the information society: it sought to bring together all those involved in creating networks, applying information technology and establishing the basic services; and it sought to raise public awareness about information technology. Most of these have now been implemented or are in the process of being implemented. This has had significant implications for European businesses by shaping the environment within which they operate. 3.1.5 Legal Inevitably legal systems can differ significantly from European country to country both in terms of their content and how they are interpreted. At the one extreme in Russia, transformation has required work, in the 1990s, to develop a legal system to come to terms with the concepts of private property (particularly ownership of land) and the legal existence of private and public limited companies with the ability to hire and dismiss labour, enter into contracts, buy, own and sell assets and so forth. At the other extreme, in the EU, Union legislation applies to all member countries and is establishing elements of a common legal framework for all, even though individual countries still, of course, have their own laws. This is based on key treaties, such as, the Treaty of Rom 1957, the Single European Act1987, the Maastricht Treaty 1993, and so forth. All these treaties will directly affect European Businesses. The main influences of countryââ¬â¢s legal system on a business are through their impact on the businessââ¬â¢s marketing mix and the laws affecting competition. For the most legal systems are based on civil law that is detailed rules and regulations which are strictly interpreted. In the UK, in contrast, the legal system is based on common law which is determined by past precedent and is more flexible in its interpretation. In terms of marketing a product EU countries tend to be more regulated because the Environmental Issues in the Car Industry Environmental Issues in the Car Industry What are the environmental issues facing the future of the European car industry? Abstract This paper looks at the issues facing the European car industry with regard to environmental issues. This is done by looking at past and present published material that revolves around the subject matter under specified themes. Theoretical perspectives within the European business environment such as pestle, models of market structure, profit maximisation, sources of finance, market segmentation, branding strategy, European business and its effects on the environment are all explained in relation to their relevance of environmental issues. These theoretical themes are used because they all act as a catalyst to the subject matter of the problems caused by cars which are not fuel efficient or less pollutant within Europe. In addition, a recently published paper on the directive for labelling on cars with regard to CO2 emissions, awareness of consumers, and fuel efficiency types in the European Union is used as empirical evidence to support ones findings as there was a shortage of time to carry out one. Finally a critical review of matches and miss-matches is used to compare and contrast similarities between the theoretical perspectives identified to prove the latter mentioned and the empirical evidence gathered for this paper, so as to forge a way forward for the European Car Industry. Chapter 1: A Brief History of The Car Industry Introduction The European Car Industry is one that has come of age. From its early beginnings over 100 years ago, it is beginning to show signs of struggling in todayââ¬â¢s modern society. This has come about due to the new challenges that the industry is facing in the new millennium. Issues such as air pollution, congestion, traffic jams etc., are all factors that have made the car industry rethink its goals, objectives, its marketing, and the consequences that are not foreseen. As a whole the car industry makes nearly 60 million cars and trucks every year, and employs millions of people around the world. Average profit margins have declined from 20 present or more in its hey days of the1920ââ¬â¢s to around 10 present in the 1960ââ¬â¢s and less than 5 present in this present day, infect some volume car makers such as Fiat, Ford, and Vauxhall, have actually been losing money. It can be stated that over century ago the car industry feasibly invented modern industrial capitalism. In the Economist (2004) the car started life in Germany and early development of the industry began in France (hence the word automobile, a French word) in the 1900ââ¬â¢s, but it was in America that the car industry came of age with the Henry Ford T-Model of mass production which started in Chicago round about the same period(1900ââ¬â¢s). In the 1920ââ¬â¢s Alfred Sloanââ¬â¢s ideas of running General Motors provided the model for the great corporations that grew up to dominate the second half of the 20th century. General Motors soon swept past Ford as Alfred Sloan revolutionized the young car industry, and Ford never regained the dominance it enjoyed in its infancy days of mass production. The car industry can be said to be ahead of its time in many respects. For example, in ââ¬Ëplanned obsolescence, which is the frequent changes in design and style that tempted customers to switch to a newer model every year or so. In the 1970ââ¬â¢s when the oil price quadrupled, the industry found itself under attack from environmentalists outraged by its products gas consuming and exhuming nature, (air pollution, etc.). It was also the first industry to come under government scrutiny, from safety concerns to environmental issues to antitrust worries in the days when General Motors had 60 present of its domestic market and could shut out competitors with a few well-chosen price cuts. However, when small economical and reliable Japanese Cars started to eat into Detroitââ¬â¢s market share, the American government imposed restraints on those imports. Soon afterwards, theca industry in Europe came under the same similar pressures and followed suit. Due to the sporadic recognition and existence as a pillar of industrial capitalism, the car industry also found itself at the mercy of trade unions in the 1920ââ¬â¢s and 1930ââ¬â¢s. Its workers increasingly pushed for trade unionisation in which a times the car factories in the Detroit area, the British Midlands, in Frankfurt, Germany, and the huge plants around Paris were the main battleground of the Class war. Although today trade union membership is still as high as ever, the power they wielded in the 1920ââ¬â¢s to 1970ââ¬â¢s has diminished immensely. Today, the motor car is the epitome of mass production, mass marketing and mass consumption, with some of the strongest brands in the world. For most households in rich countries, it is the second-biggest purchase after a house or flat, which makes the industry a pillar of modern industrial capitalism as earlier mentioned. Few other consumer goods industries depend so heavily on second hand market for their products. Now, understanding how the European Car Industry operates and the many pressures that it faces is essential to an understanding of the predicament the UK car buyers currently faces. Around 70 present of new cars sold in the UK are imported, with the great majority of these imports coming from the rest of Europe. The UK market is intrinsically tied into the pattern of car making and distribution across Europe. Thus the behaviour of the UK motor industry towards both its retailing and service partners and towards consumers is part of the wider behaviour of the European Car Industry. The industry can be said to be mature one. In virtually every country of North West Europe, the density of car ownership has almost reached its practical maximum. There are some opportunities for growth left in Southern and Central Europe, but they will be largely used up in the next few years. Following on, the consequences of mass production, and a slow introduction of cars that run on synthetic or alternative fuels has led to a rapid increase in environmental pollution, CO2 emissions, traffic jams, congestion, and human related diseases such as lung cancer, all of which are serious environmental issues, which the European Car Industry have found itself slow to adapt, change, amend and implement to the betterment of the wider society. This has led to directives and committees from the European Union to be setup to tackle the issued mentioned above and the latter. With this in mind a review of existing material that has been published in the press and journals will now be critically analysed. Chapter 2: Existing Literature Reviewed The need to galvanise and understand the unforeseen circumstances of mass car production and environmental issues in the European Union has been stressed by researchers for more than three decades. According to the Europa (2005), the EU is the largest automotive production region (34%) in the world and the industry comprises 7.5% of the manufacturing sector in the union. Direct employment by the automotive industry stands at about two million employees, while the total employment effect (direct and indirect) is estimated to be about ten million. It also adds that since the year 2001, the motor vehicle production has decreased in the European Union, from 17.2 million units in 2001 to 16.9 million units in 2002. The decline continued into2003, with 70,000 motor vehicles less being produced, compared to2002. This decline is due to the worsening of the macro-economic situation where consumer demand has been decreasing. Lagunas (2005)correlates with this by stating that motor vehicles have become the prime means of personal and commercial mobility in todayââ¬â¢s world. Growing prosperity has led to a spectacular rise in car use, phenomenon being repeated in the new member states which joined the Union in 2004. In China and other booming countries with looser anti-pollution rules than the EU, trends show major increases in private transportation. This success has generated serious concerns about the environmental effects of vehicle use, in particular traffic congestion, air pollution, traffic-related diseases, and noise. In addition Lagunas (2005) states that these concerns have led the EU to formulate the objective of decoupling economic growth from transport growth. The EU has come up with legislation and initiatives to drive the change towards cleaner cars while promoting sustainable transport modes and model shift. It goes on to state that the interest in cleaner, less polluting vehicles and fuel has grown rapidly in recent years. Emissions from petrol and diesel engines have been significantly reduced in the last decade, driven mainly by European legislation and will continue to be reduced. In elaboration Lagunas(2005) states that in the EU, almost 40 present of the transport sectorââ¬â¢s CO2 emissions are produced by the use of private cars in cities, CO2 emissions are damaging the environment and contributing to climate change; both petrol and diesel engines have their good and bedsides as regards emissions; engines working with diesel fuel emit lessCO2 than the ones working with petrol; on the other hand diesel engines are releasing more cancer causing particles in the air. Air pollution caused by car emissions has health impacts; problems include aggravation of respiratory and cardio-vascular diseases, asthma, and decreased lung functions. Gartner (2005) also argues that the effectiveness of the directive made by the EU relating to the availability of consumer information on fuel economy and CO2 emissions has been successful and gained momentum in some European countries but not all. Reasons being consumers lack awareness of fuel economy and environmental impacts of fuels as well as available information tools, in which one of the possibly ways to tackle this as stated by Gartner(2005) was to increase consumers awareness by standard equipment of new cars with fuel consumption indicators or cruise control. In addition Gartner (2005) argues that fuel economy and environmental impact are in general no major factor in vehicle purchase decisions and fuel consumption is mostly only important because of the cost, but not to environmental issues. ACNielsen (2005) agrees with this by saying when it comes to what influences consumerââ¬â¢s choice of car brand, manufacturers of luxury vehicles may be surprised to learn that image and prestige do not appear to be a top priority, in which engine size and environmentally friendly cars are regarded as the least important features to the Europeans when it comes to buying a car. Interest; however is growing slowing with a greater awareness of climate change and CO2 emission issues. Gartner (2005) also states that general awareness of label, poster/display and guide on CO2 emissions and fuel efficiency on cars is quite small and most of the information tools are not regarded as very informative or effective, although it can be said that this varies f rom one EU country to another. For example, in Austria, the label is regarded as the most informative and efficient element, compared to teak where the label was not assessed as effective in detail. In an article by the BBC (2002) it was argued that there are five major groups of car manufacturers in the world, they are General Motors, Ford, DaimlerChrysler Benz, Toyota, and Volkswagen. Of these only Toyota relies on one global brand name. All the others have a web of subsidiaries spanning the world. We must understand that the real reason why the car manufacturing firms are in business is to make money and maintain their prestige as a world class car manufacturer. To do this means they (car manufacturers) will have to constantly roll-out new models, with better gadgets, with performance and style. That is why, as Madsen (2002) argues, Volkswagen launched its luxury car, ââ¬Ëthe Phaetonââ¬â¢ to compete against the Audi, Bentley, Bugatti, and Lamborghini brands. This initiative was and is deemed as a risky push by the Group. However, the Chairman of the group Rd. Bernd Pischetsrieder argues that success would not be measured by sales volumes that the key was to enhance the Volkswagen brand. It was also argued by critics from within and outside the firm that the launch of the Phaeton, delayed the launch of the Audi, which is a car from within the group. However, he was quick to mute the negative by stating that possibly, the dealers learn to be a bit quicker and not to find the competitor in-house but out-house, and this will help the business; adding it is the engineers and marketers of the Audi brand that have the serious challenge of making sure that the brand does well. With this type of attitude within car firms it shows that environmental issues are the least likely concern within the European Car Industry. In the UK, white paper by DETR (2002) stated that many towns and cities suffer from traffic jams and polluted streets and as a result, are less attractive places in which to live and do business. Reducing the negative impacts of traffic on the quality of peopleââ¬â¢s lives is a key element of improving the urban environment, as set out in the governmentââ¬â¢s recent urban white paper. Adding that emissions of air pollutants arising from road traffic are set to decline over the period to 2010 as a result of improvement s in vehicle technology and fuel quality, but are forecast to begin rising again beyond 2010 due to increased traffic growth. Indirectly, an increase in car sales that are not fuel efficient means more air pollution, increased traffic jams, and lung cancer. However, in Europe the car market has become largely a market for replacement vehicles within a largely static market rather than one driven by a growing buyer base, Consumer association (2000). In addition, the market is crowded with over 40 marques and 250 models on offer and major product innovation is rare and rapidly imitated. Notwithstanding, product branding activity is intense and advertising spends are large and directed at creating a sense of differentiation. In another article by the BBC (2002) it was argued that in the UK, car prices were still too high and one of the major reasons for this was the ââ¬Ëblock exemptionââ¬â¢, which allows network of national or regional dealers selected by car manufacturers, to flourish. However, this (block exempt) has now been abolished byte European parliament. In another article by the BBC (2002), it was argued that the number of car manufacturing companies had shut down due to the fall in export demand owing to the euros weakness against the pound; this is in relation to the fact that 70% of cars driven on Roads are European Imports. In the Economist (2004), it was argued that out of the worldââ¬â¢s top 17 car compani es, only half were earning more than the cost of their capital. The value creators in Europe were Porsche, the Mercedes bit of DaimlerChrysler, BMW, and Peugeot. In Asia, Toyota, Nissan, Honda, Hyundai, and Kia made the cut. But Americaââ¬â¢s big three GM, Ford, and Chrysler, were all in the value destruction group, along with Renault, Fiat, Mazda, Mitsubishi, and. In the same article GMââ¬â¢s boss argues that the Japanese government is providing indirect aid to the countryââ¬â¢s car companies by holding down the yen, thereby lowering their costs of producing export models and parts for the American assembly plants and also in Europe. American and European manufacturers maintain that the Japanese do this solely to boost their exports; but it can be stated that the real reason for the Japanese government of implementing such a policy may have been to head off deflation and revive the domestic Japanese economy. In another article by Europa (2005) Verheugen, the vice-president of the European Commission responsible for Enterprise and Industry argues that a legal framework will need to be created via CARS 21 High level group, in which the overall objective is to make recommendations for the short, medium and long-term public policy and regulatory framework for the car industry that enhances its global competitiveness as well as employment, while sustaining further progress in safety and environmental performance at a price affordable to the customer. Corby (2005) also argues that the environmental performance of cars has been improved dramatically over the past decade. New cars have become more fuel efficient and they emit less toxic emissions than cars in the 1970ââ¬â¢s, adding that environmental innovation is essential for the sustainability and competitiveness of the European car industry. The previous mentioned shows that great changes are being made in the European Car Industry with regard to environmental issues. In a press release by the Auto Industry (2003), it was argued that new car average CO2 emissions fell to 174.2 g/CO2per km in 2002, 8.2 present down on the 1997 baseline and 1.9 present below the 2001 average. The rise of the superman in the UK over recent years has helped to lower average CO2 emissions through the wider appeal of smaller cars. In the same article, it was stated that Diesel fuelled cars have been a significant influence on the reduction in average CO2 emissions. Diesel models took a record 23.5 present share of the UK market in 2002, with demand up 38 present. In another published article by Lagunas (2005), it was suggested that the average new car in the EU ââ¬â 15 was releasing almost 12% less CO2 in 2003 than it did in 1995, however pressure was growing, especially from Berlin, to push automakers to make further cuts. In the same article, the German Advisory Council on the Environment (SRU), a government body, blamed the European commission for allowing car makers to exceed limit values for particulate matter (pm) and CO2. It criticizes the industryââ¬â¢s voluntary target to reduce emissions to 120 g/km by 2012 as being too modest, saying a target of 100g/km is achievable by that date. It therefore, proposes an ââ¬Ëinnovation forcing strategyââ¬â¢ to push carmakers embarking on the global competitive race for improved environmental performance of vehicles. Balzac (1998) adds to the furore that because the Yen is one of the leading international currencies, solving the problem (devaluation of Yen) requires international answers. In the same article, as the Car industry is considered one of the key industries in Japan and Europe, a devaluation of the Yen directly affects the European Car Industry. As mentioned in the latter sections a devaluation of the Yen enables Japanese car manufacturers to sell their cars at much lower affordable prices to potential customers in Europe, and North America, in which the European Car Industry would suffer the most due to a high value of the currencies within the European Union member states. With all this in mind, the remainder of this paper proceeds as follows: Chapter 3: Theoretical Perspectives on the European Business Environmentà and Marketing Chapter 4: Empirical Evidence. Chapter 5: Critical analysis of Theoretical perspectives and empirical evidence Chapter 6: Summary and Conclusion. Chapter 3: Theoretical Perspectives On The European Business Environment and Marketing In order to have a clear understanding of the concept of the business environment within Europe and the marketing of the car industry, we will first need to identify the meaning of the terminologies. European business is a generic term which describes Avery wide variety of agricultural, industrial and service activities undertaken by a large number of different organisations across the continent of Europe. Examples of European business might include: Privatised telecommunications companies such as Deutsche Telekom; a French recording company based in a converted barn in Normandy, France; a farm in Eastern England, highly mechanised and engaged in agribusiness; a transnational organisation such as the German car producer Volkswagen, with factories in Germany (VW and Audi), Spain (Seat), the Czech Republic (Skoda) and the UK (Bentley) etc. European business may be run by one person or it may be a small private company. Alternatively it may be a large organisation employing thousands of people, with assets worth hundreds of millions of euros and based in many different European countries. The European business environment refers to the conditions within which European businesses operate. Typically it involves a number of different interacting forces which shape the environment, and thus how a business formulates its long-term strategy, its tactics and its daily operations within this environment. These factors may include political, economic, social, cultural, religious and linguistic forces. Now, marketing is the social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Kilter et al. (2005). For example, important terms such as needs, wants, and demands; products and services; value, satisfaction and quality; exchange, transactions and relationship; and markets are all core marketing concepts which are linked, with each concept building on the one before it. Each part of the marketing definition defines what marketing is and how it is practised. With this in mind we can now move on to discuss about the theoretical concepts used in the understanding of the business environment and marketing of the European car industry. There are several important conceptual frameworks that are used for understanding the environmental impacts of the European car industry. The ones used in this paper are: â⬠¢ PESTLE â⬠¢ Models of Market Structure â⬠¢ Profit Maximisation â⬠¢ Sources of Finance â⬠¢ Market segmentation â⬠¢ Branding strategy â⬠¢ The European Business and the environment 3.1 PESTLE This means, Political factors influencing a business environment; Economic factors; Sociological influences; Technological influences; Legal factors; and Environmental/ethical issues. This framework issued to analyse the European business environment. 3.1.1 Political The political beliefs of governments and the policies they implement to pursue them have a major impact on the European business environment. This is both in their own right and also through other policies, such as economic ones; hence the re-emergence of political economy in recent years. Additionally, other political philosophies may also have an impact on EU society and hence on the business environment. In the extreme case the economic policies pursued by the former Soviet bloc, with its emphasis on central planning, clearly had massive impact on the ownership, organisational structure, operations and lack of profitability of government-owned European businesses operating in this area. Similarly, the UK Thatcher governments of the1980s created a business environment of entrepreneurship which was largely shaped by the political beliefs of Margaret Thatcher and her close advisors, which subsequently influenced other countries in Europe 3.1.2 Economic The economic policies pursued by EU governments clearly have significant influence on the environment within which European businesses operate. Since the signing of the Treaty of Maastricht was completed in 1993 EU currency (SEC), formerly called the European currency unit (ecru) but now known as the euro, as part of the moves to Economic and Monetary Union (EMU). The commitment by EU governments to meet the Maastricht convergence criteria, as a precondition for acceptance to the first wave of membership of the single European currency, has obliged them to demonstrate fiscal restraint to meet the criteria relating to budget deficit (not to exceed 3 present of the countryââ¬â¢s gross domestic product or GDP) and national debt (not to exceed 60 present of GDP). The purpose of the convergence criteria, as their name suggest, is to converge potential membersââ¬â¢ economies to broadly similar levels in terms of the rate of inflation, the level of long-run interest rates, and the stability of their exchange rates and, as noted, government debt. In addition the ability of countries to converge to a common position in their business cycles, in practice to converge their business cycles with that of Germanyââ¬â¢s as the leading Economy. In practice the problems of non-convergence were demonstrated in the early 1990s when Germany raised its interest rates to counter inflationary pressures. These had resulted from borrowing to fund major expenditure in Eastern Germany to redevelop the infrastructure and productive capacity after the collapse of the communist regime of the former East Germany. 3.1.3 Sociological This is examined in three broad areas: culture, language and religion. Culture: The fact that the British have a totally private sense of distance. This is most visibly seen in the shared pretence that Britain is a lonely island in the middle of an empty green sea. Culture has been described as ââ¬Ëthe way we do things round hereââ¬â¢. In this sense it may be viewed as the inherent values, attitudes, social conventions and mores of a nation. In most cases these are transmitted from one generation to another, usually through the family. Increasingly, however, culture is modified by education, the media and peer influences as the pace of change accelerates in modern society. Cultural differences contribute to the diversity of the people who live in Europe and hence are an enriching experience. Cultural differences can also create barriers, however, which in turn have significant implications for European Businesses since, if they are to succeed another than their domestic market, these differences must be taken into account. Examples of cultural differences are: the business organisation, in Germany businesses are rigid in their approach and expect everything to be done through proper bureaucratic channels with full technical detail provided. In contrast, British firms involved in collaborative ventures, or who have opened subsidiary companies in Germany, are more casual and relaxed enabling them to be more flexible when sudden response is needed to market change. This difference in operational philosophy can cause problems. Class is also a major factor in determining social attitudes in the business environment, particularly in the UK but also in other parts of Europe. In contrast, in less class-divisive societies such as Denmark, Sweden, and Norway attitudes may be quite different, people such as senior managers secretaries are regarded as important people in the organisation, whereas in the previously mentioned countries this would not be so tithe same extent. Business attitudes to delivery dates are also important. European businesses operating in Germany soon find that when they promise a delivery date for a new product consumers expect it in the shops on that day, not several weeks later Firms who slack on this simple rule find themselves bombarded with telephone calls-mails, and letters. In contrast, in Spain and Greece attitudes are much more causal in this respect; the personal appearance and behaviour, the French place much emphasis on establishing personal contact in business dealings and expect the people they deal with to have style. The Spanish believe in the importance of being smartly but conservatively dressed and demonstrating worldly knowledge, for example of good cuisine and wine; these are important issues when dining out, attending trade delegation receptions and so on, where business contacts are made. Scandinavians in contrast are much more casual in their dress; Cultural training programmes, these differences have implications for the training policies adopted by companies; some European businesses are now adopting recruitment policies where new employees are expected not only to have fluency in more than one language, but also to demonstrate some cross-cultural knowledge. Language: In the EU there are currently 13 EU official languages and another 35 territorial minority languages, which include Basque, Breton, Catalan, Cornish, Frisian, Galician, Letzeburgesh, Irish Gaelic, Occitan, Slovene, and Welsh. Language above all else defines group of people as distinct from all others in Europe, since it also implies culture, inherited knowledge and beliefs and terms of reference and thought specific to that group alone. In that sense there is therefore an overlap with the above. Different languages and dialects as a whole all create market differences. Religion: In the traditional Catholic countries of Europe, particularly Eire, Italy, Poland and Spain, the impact of formal organised religion on society and hence business is very important. Past controls on the sale of contraceptives in Eire are one such example. In Poland the Catholic Church has a vital role to play in the political scene with all parties having a commitment to Christian values in their policies. As a whole, businesses in Europe must bearing that increasingly the EU is becoming a society of many faiths. Certainly the large number of Jews resident in Europe has always been obvious. Now however many Muslims have entered EU countries and their religious and moral susceptibilities must also be heeded as much as another religion. 3.1.4 Technological Clearly technology has had a major impact on the European business environment, particularly information technology. The impact of its use will be so pervasive as to be hard to imagine life without it. This ranges from autopilots on aeroplanes to computer-controlled traffic management systems in our cities; from computer-controlled robots on factory assembly lines to screen trading in stock and foreign exchange markets; from the growth of consumer purchases via the internet to the use of e-mail rather than conventional letters or faxes. In this sense Bill Gates of Microsoft has argued that the internet will in effect act as a market-maker, bringing together buyers and sellers with minimum friction, and not just for goods and services but also in the Labour market. In 1994 the EU setup a first policy framework for the EU information society. These proposed initiatives to regulate the information society: it sought to bring together all those involved in creating networks, applying information technology and establishing the basic services; and it sought to raise public awareness about information technology. Most of these have now been implemented or are in the process of being implemented. This has had significant implications for European businesses by shaping the environment within which they operate. 3.1.5 Legal Inevitably legal systems can differ significantly from European country to country both in terms of their content and how they are interpreted. At the one extreme in Russia, transformation has required work, in the 1990s, to develop a legal system to come to terms with the concepts of private property (particularly ownership of land) and the legal existence of private and public limited companies with the ability to hire and dismiss labour, enter into contracts, buy, own and sell assets and so forth. At the other extreme, in the EU, Union legislation applies to all member countries and is establishing elements of a common legal framework for all, even though individual countries still, of course, have their own laws. This is based on key treaties, such as, the Treaty of Rom 1957, the Single European Act1987, the Maastricht Treaty 1993, and so forth. All these treaties will directly affect European Businesses. The main influences of countryââ¬â¢s legal system on a business are through their impact on the businessââ¬â¢s marketing mix and the laws affecting competition. For the most legal systems are based on civil law that is detailed rules and regulations which are strictly interpreted. In the UK, in contrast, the legal system is based on common law which is determined by past precedent and is more flexible in its interpretation. In terms of marketing a product EU countries tend to be more regulated because the
Wednesday, September 4, 2019
Relationship between Marketing Mix and Consumer Behaviour
Relationship between Marketing Mix and Consumer Behaviour The primary idea of a marketing mix was introduced by Neil Borden in 1953 while describing the recipe that was needed to make a successful marketing campaign. The idea was then given the 4 Ps in 1960 by E. Jerome McCarthy. Marketing Mix is a combination of elements used in the sale of a specific product. The marketing elements that affect a products performance are seen in four distinct functions, also called the Four Ps of marketing. They include product, price, place (of distribution), and promotion. All these functions are considered in the process of planning a marketing strategy. Any one may be enhanced, deducted, or changed to some degree, depending on the market scenario, in order to create a strategy necessary to sell a product. A brief description of each of the aspects of the marketing mix is explained below. Product The physical product/service offered to the consumer. Product decisions include aspects such as function, appearance, aesthetics, post sale service, product warranty, etc. Promotion Promotion decisions are those related to telling or communicating to the target customer what the product has to offer. The duty involves luring a customer in for the sale and then finally completing the required sale. Promotions teams have a responsibility to selling to a new customer and increase the use of the product to encourage more sales. Since these costs often over shoot the products price, a break even analysis must be conducted when making promotion decisions. The promotions team decides to which kind of customers the product needs to be sold. This is also significant in the planning of the product cost and the type of promotion that would go into the promotion of the products. Promotion include advertising, public relations, media types, etc. Place This deals with the location or the place where the product is expected to be sold. The product has to reach the consumers through a series of distributors and retailers. It is associated with the distribution channels which all serve as the means for getting the product to the customers who pick it off a shelf or pay for it otherwise. The distribution system performs all the transactional, logistical, and facilitating functions between middle men and retailer which brings them the best deals and the most effective profit. Distribution decisions include market coverage, channel member selection, logistics, and levels of service. Price Pricing decisions should take into account to account for profit margins and competitors. Keeping up with competitor pricing and treatment of the product in the market brings in a great deal of strategy to the products life cycle. Pricing includes along with the marked list price, the discounts, financing, and more options such as leasing. The following section will deal with describing the effect of the various aspects and sections of the Marketing Mix with association with RD(Research and Development), Brand Portfolio, Sales force and Market Research. Link between Marketing Mix and Consumer Behaviour The psychological processes that a consumer goes through to recognize his needs and finding ways to fill the gaps formed by these needs, making decisions about a purchase (eg., whether or not to pay for a product and, if they are then, which brand do they want to buy and where), process information, planning and implementation of these plans (eg., by engaging in comparison or window shopping or actually paying for a product). It is often necessary to understand the customer and his/her regional and cultural influences. Chances of an Indian or a Chinese bargaining at a retail store are higher than that of an American customer. This affects the pricing and the promotion done for the product. Often, the advertisements and the promotion strategy are re-used in different parts of the world on account of the type of customer. This make a difference on spends and proper consumer behaviour can often bring the difference between a successful and an unsuccessful campaign. Decision making by customers include the availability of the product in the region and information that helps him/her make the required decision pertaining to the purchase of the product. Let us use a few examples to explain the link between the marketing mix and consumer behaviour. The denim and jeans industry which include some internationally recognised brands including Levis, Lee and Pepe understand that within their target range, we include the young crowd. Commonly people up to 30 years of age. They, therefore make sure that the campaigns and marketing include a specific intention to pull these customers in. The ads therefore include several young people in harsh surroundings. KFC and McDonalds have learnt that people tend to eat more in bright coloured surroundings. Therefore, all their outlets usually have bright colours across the walls. A study showed that the These are only very simple examples of consumer behaviour. Understanding the performance or the process of aligning the 4 Ps as per our customers needs is huge in scope and profitable in practice. Link between Marketing Mix and Market Research Market Research is the process of gathering data or info in order to better understand the aspects which would affect the performance of a product on the market. We have to understand if a particular move or step is worth the risk. Incorrect or inadequate market research often leads to poor performance due a poor understanding. Most companies are founded on the principle of profitability. Goods or services they provide should aim to be something that the customer needs and the company can benefit from. That is where market research plays it hand at making a decision. Doing that research accurately will determine if your business will flourish or fall flat on its face. The research conducted around a single product includes analysis of the customer during the purchase phase, the reaction to a specific advertisement, the positioning of the product on the shelves of the stores they appear in, the comfort of the customer with the product etc. In a business strategic sense, they are used to collate Market Information (data about competitors and the supply and demand situation), Segmentation (understanding what kinds of customers appeal to what kind of customer reacts to a specific form of promotion based on common criteria), Market Trends (the fluctuation of the market), Risk Analysis, Competitor Analysis etc. Each and everyone of these activities brings the product manufacturer/service provider with the info he/she needs to process and successfully sell the product. This changes the manner in which the product is sold. The price, the positioning, the promotion and the product itself depends on this research. Link between Marketing Mix and RD Research and Development in a company often implies the need or the drive to improve the product and allow for a better replacement to make its way into the market. The idea behind research and development is to maximise the benefits that the consumer gets out of the product. The idea behind research and development is to improve the products and possibly charge a premium on the improved product which will increase profitability and allow the company to re-invest in research for a better product or a better variant of the same. The benefits from research are manifold. They include better products and hence a more loyal customer and possibly new ones. A company which thrives on research like a Pharmaceutical company is normally not considered the best kind of investment for a player in the stock market. This is because of unusual and over the top spending patterns for research which doesnt necessarily return the investment made. Research and development is also to keep one step ahead of the competitor. To remain at or reach to the top of the table, a company must constantly come out with a product thats just better than the competitors product. Pricing is always a major aspect to consider while working the specifics in research. The price of a product depends on the amount of research that goes into its development. The premium charged on a product comes from patents that protect it against duplication. Patents however, are only offered for a temporary period. Post that, the product is open to duplication. In this case, the price drops to a minimum, usually to push for maximum sales and to allow a return from plain sales. In promotion , the results of research are often touted in the ads about the same. This comes from Surf Excel and Bournvita ads which talk about extra acting chemicals and extra nutrients respectively to make it a better choice than competitor products. Link between Marketing Mix and Sales Force The sales team that drives the amount of revenue coming into the company involves the final point of contact with the customer. This is the point where all the promotions and pricing bring the customer to the final decision making stage. The best salesman is who gets the sale done and the papers signed. It is assumed at times that a large sales force implies the sale of more products. This is not true. A sales force means training. The training involves teaching your sales force selling the product and the nuances associated to the product. This leads to an automatic rise in the spends of the company and very easily reflects on the prices of the products. The size of a sales force depends on the reach of the product in terms of distribution. The type of product also as a major say in the strength of the sales force. Pharmaceuticals have lesser sales force as they cover doctors in mostly urban and sub-urban areas. FMCG sends their sales force all across the country and the world to maximise sales. Link between Marketing Mix and Brand Portfolio The brand portfolio is a system used to categorise the products into high-earners, dead-beats and break-evens. The brand portfolio is created for both analysis of the past and application in the future. The portfolio will contain details about the product that helps the company make decisions about the products future. These include the promotional activities that the product will go through, the price at which we make it available to the customer, the positioning of the product and the condition of the products complete development. The price of a high-earning luxury item can be increased and the smaller items which lose you money will be the losers which will be either pushed back from promotion or pulled out altogether. The idea behind a brand portfolio is to keep a check or an eye on the products performances. Application of Key Learnings to Reckitt Benckiser in the liquid antiseptic division Reckitt Benckisers liquid antiseptic is the very popular Dettol. Dettol has been a strong contender in the liquid antiseptic industry. It has ruled the roost in the industry for several years and still holds solid ground. Dettol enjoyed over 80% of the market share in its antiseptic form. The soap and the liquid soap formats however, had just about 15% of the industry. The soap and liquid soap formats did not enjoy the same success that the antiseptic did. The demand for Dettol rose from about Rs. 105 billion in 1999 to Rs. 160 billion in 2009. The demand forecast graph for Dettol over the past 10 years can be seen below. Consumer Behaviour Study of Dettol A consumer behaviour study to understand the success of Dettol as an antiseptic brand was conducted to understand the reasons for the popularity of the brand. The study revealed that 85% of the respondents knew about Dettol i.e. they were aware that the product existed. 72% of the respondents used it as a preferred antiseptic. 72% also continue using Dettol because of Brand Loyalty and 56% are open to using other Dettol products. Dettol and Reckitt Benckiser have never had to worry about the competition so far. The users mostly preferred Dettol to other products. The figure below refers shows the analysis, study and the results of the research conducted. Pricing Strategies surrounding Dettol The Dettol variants have always been competitively priced with the market. The Soap variant was priced at Rs. 16/75mg and Rs.26/125mg. This was priced against the similar Savlon product which was priced at Rs.16 and Rs.24.5 respectively for the two package varieties. Both of the products however, are far higher than the alternate Medimix which was Rs.12 and Rs.17 for the two variants. At this point, a manager would wonder whether or not the right idea would be to work towards the price. Dettol can charge a minor premium on the product price because it holds a certain edge over the existing products. However, Savlon is catching on fast considering its an antiseptic which doesnt hurt as much. The manager therefore, tries to make the best of the current scenario and ensure that the competition wouldnt eat into its market share. In liquid soap, Dettol was exactly the same as the Fem variant which both sold as Rs.55/250ml. The market share of the liquid soap for Dettol is very low. A change in the price might even help the return to the market and allow Dettol to take the product ahead. The Shaving Cream division sees Dettol lying between the Old Spices Rs.37.50/70g and Rs.24.50/30g and Palmolives Rs.36/70g and Rs. 19.50/30g. Market Research and Research and Development of Dettol Reckitt Benckiser and Dettol say Good health begins with hygiene. The Dettol variants were restricted to products which represent hygiene and banked on the very reliable name of Dettol to push the hygiene factor across to the customer. Dettol was broken down into the Antibacterial Soap, Liquid Handwash, Shaving Cream and Band-Aid. The marketing team at Dettol looked into what could be done to maximise the reach of the Dettol brand and where it could be used conversely to decide what kind of variant would be required and what type of product is needed for the next step. The products all promote killing germs, freshness and absolute cleanliness and purity. Dettol has performed extensive research on the expansion plans of their major brand. The Dettol brand took the reach of Dettol to go as far as possible. The reach of Dettol moved from homes and hospitals to hotels, theatres, railways, educational institutes, saloons, school events. Trend Analysis of Dettol between 2000 and 2004 The trend analysis has shows sales numbers on a high. The numbers have constantly been increasing over the past several years. In 2000, the sales numbers were close to 48000. In 2001, the numbers went up to 55000. Uptil 2003 following this, the number remained largely stagnant and then moved to dip slightly below 54000. However, the year 2004 was a fantastic attack on the market and shot up numbers in a single year in 2004 to 63000. We can tell from the demand forecast table that the demand made for the hygiene industry products kept going up. The demand kept going up. Sales number increasing means we need to bump up the sales force. Ideally, the need for a greater sales force comes from the need for more retailers. The more the retailers, means that the reach of the product has increased and there are more people who are willing to buy and to sell. A sales force involves training. The need for greater performance is what keeps a company going. To maximise sales, they have to increase sales force. To increase sales force, they have to spend more money on the hiring, training and keeping the sales force. This automatically leads to greater spending in the event that the product might not do well, thus bringing up the costs of the product. SWOT Analysis of the Reckitt Benckiser Dettol industry Below we have a brief SWOT analysis of the industry. Strengths: High market share of antiseptic liquid Brand loyalty Most trusted Brand High quality at affordable prices Weaknesses: Poor marketing strategies for Dettol Shaving Cream Dettol Talc Burning sensation of Antiseptic liquid Opportunities: Dettol Water Purifier due to increase in epidemics Opportunity to capture the shaving cream segment Threats: Competitive Pricing Attractive Packaging of competitor products Good Advertisements by competitors
Comparing The Sun Also Rises and Possessing the Secret of Joy :: comparison compare contrast essays
Similarities in The Sun Also Rises and Possessing the Secret of Joy à à à à à à à à Ernest Hemingway and Alice Walker, although separated by seven decades, show striking similarity in their definitions of love in their novels The Sun Also Rises and Possessing the Secret of Joy. It is a unique similarity of circumstances that links these two novels. Jake Barnes, the protagonist of The Sun Also Rises, is literally and symbolically castrated during his service in the First World War. Tashi, the protagonist of Possessing the Secret of Joy, undergoes an ancient tribal ritual of female circumcision that leaves her incapable of having sex. Through these two characters, Hemingway and Walker proclaim their belief that love can exist outside the parameters of a conventional relationship. à Both Jake and Tashi are wounded by serving their countries--Jake in the war, Tashi in an ancient tribal ritual. In both cases, their sacrifice is expected of them. Jake, after returning from the battlefield, is commended by his officer. It certainly was a "rotten way to be wounded," and Jake's officer says, "You gave more than your life." To his officer, however, if Jake had given more than his life it was given in honor of his country, so any consequences of his wound was a fate he would have to live with. He was supposed to be proud to have given so much for the war effort, but his wound does not make Jake a hero. Instead, he is reduced to something less than a man. His wound becomes a joke instead of a mark of a martyr. Jake thinks, "At one time or another I had probably considered it [his wound] from most of its various angles, including the one that certain injuries or imperfections are a subject of merriment while remaining quite serious for the person possessing them" (20). As the war grows distant, Jake must assimilate to life as a lover, not a soldier. In a time when people try to forget the war, Jake becomes not a hero but the object of a cruel joke. à "You have given more than your life." -The Sun Also Rises à Tashi is also wounded for her country. Her African tribe, the Olinkans, demands that everyone have their face scared with traditional tribal markings. For women this "initiation" also includes circumcision. Tashi wants to go through with the ritual--just as Jake decides to join the army--so that she can sacrifice for the traditions and culture she believes in.
Tuesday, September 3, 2019
Civil Engineering Essay -- essays papers
Civil Engineering Throughout my lifetime, I have never had to think very much about the working world and everything that went with it. All through high school I took classes I liked or thought would be interesting to me, but never thought that all of those classes were preparing me for what was to come. Before I knew it, it was time to go to college. The four years of high school had flown by and now it was time to choose a major for college. I had never given much thought as to what I wanted to do for the rest of my life. The only real occupations that I had really gotten to experience were teaching, the jobs that my parents had, and others such as doctors, dentist, most of the occupations that everyone sees while they are growing up. When I finally decided on my major, I chose engineering, but I didnââ¬â¢t know if I would like it or not. The only prior knowledge I had about it was the fact that my grandfather was an electrical and chemical engineer, and that my parents and teachers said that I would be good at engineering. Recently I have been interested in civil engineering, but what does one do with such a degree? What opportunities are available to a person with a degree in civil engineering on the job market? The broad curriculum that covers many different fields of engineering make civil engineering a major that allows a person to work in nearly any field they wish. So what could a person do with a degree in civil engineering? Civil engineering is one of the most general fields in engineering, and is often considered the ââ¬Å"liberal arts of engineering.â⬠Civil engineering is also referred to as the ââ¬Å"Peopleâ⬠engineering, because wherever there is a civilization, there is a need for civil engineers. A person that possesses a degree in this field shows an understanding of mathematics, chemistry, and physics. Thus there are many different applications of jobs that a person can perform with this degree. As Jeff Olsen, a former graduate in civil engineering at the University of Cincinnati says, Fortunately for an engineer, there always seems to be room for advancement, both inside and outside of engineering. If you want to stay "engineer" your whole career, there are typically two paths an engineer takes during their career. One is to remain technical your whole career. This type of person is someone that likes sitting behind a desk doing desi... ... do. I am the type of person that becomes bored very quickly with the same thing day in and day out, so this fast paced, always-changing work atmosphere is perfect for my personality. As a civil engineer I will choose to work outside with a hands-on approach to the projects I take on. This will be a very rewarding career for me, since I will get to see a specific design all the way through to the finished project, and I will get to observe how this finished project helps the public. I also like the fact that my work would benefit more people in one day than almost any other profession. Since I am good at solving problems and designing and constructing things, I should have no problems as a civil engineer. Because civil engineering has all the qualities I am looking for in a job, I feel that it is the perfect career for me. Bibliography: Olsen, Jeff. Personal Interview. 18 Feb. 2000. Rost, Bob. Personal Interview. 22 Feb. 2000. Chua, Ian Y. H. Civil and Structural Engineering Resource Web. 29 Jan. 2000. 2 Mar. 2000. http://web.singnet.com.sg/~icyh1955/civil.html. Telford, Thomas. ââ¬Å"Re: Civil Engineers Handbook.â⬠E-mail to the author. 29 Feb. 2000.
Monday, September 2, 2019
Bloodlines Chapter Four
ABE HAD THE KIND OF APPEARANCE that could leave many people speechless, even if they knew nothing about him. Oblivious to the heat outside, the Moroi man was dressed in a full suit and tie. The suit was white, at least, but it still looked like it would be warm. His shirt and tie were purple, as was the rose tucked into his pocket. Gold glittered in his ears and at his throat. He was originally from Turkey and had more color to him than most Moroi but was still paler than humans like me and Keith. Abe's complexion actually reminded me of a tanned person who'd been sick for a while. ââ¬Å"Hello,â⬠I said stiffly. His smile split into a full grin. ââ¬Å"So nice to see you again.â⬠ââ¬Å"Always a pleasure.â⬠My lie sounded robotic, but hopefully it was better than sounding afraid. ââ¬Å"No, no,â⬠he said. ââ¬Å"The pleasure's all mine.â⬠ââ¬Å"If you say so,â⬠I said. This amused him further. Keith had frozen up again, so I strode over to the old Moroi man and extended my hand so that at least one of us would look like we had manners. ââ¬Å"Are you Mr. Donahue? I'm Sydney Sage.â⬠Clarence smiled and clasped my hand in his wrinkled one. I didn't flinch, even though the urge was there. Unlike most Moroi I'd met, he didn't conceal his fangs when he smiled, which almost made my facade crack. Another reminder that no matter how human they seemed at times, these were still vampires. ââ¬Å"I am so pleased to meet you,â⬠he said. ââ¬Å"I've heard wonderful things about you.â⬠ââ¬Å"Oh?â⬠I asked, arching an eyebrow and wondering who'd been talking about me. Clarence nodded emphatically. ââ¬Å"You are welcome in my home. It's delightful to have so much company.â⬠Introductions were made for everyone else. Eddie and Jill were a little reserved, but both friendly. Keith didn't shake any hands, but he at least stopped acting like a drooling fool. He took a chair when offered and put on an arrogant expression, which was probably supposed to look like confidence. I hoped he wouldn't embarrass us. ââ¬Å"I'm sorry,â⬠said Abe, leaning forward. His dark eyes glittered. ââ¬Å"Did you say your name was Keith Darnell?â⬠ââ¬Å"Yes,â⬠said Keith. He studied Abe curiously, no doubt recalling the Alchemists' conversation back in Salt Lake City. Even through the bravado Keith was attempting to put on, I could see a sliver of unease. Abe had that effect. ââ¬Å"Why?â⬠ââ¬Å"No reason,â⬠said Abe. His eyes flicked to me and then to Keith. ââ¬Å"It just sounds familiar, that's all.â⬠ââ¬Å"My father's a very important man among the Alchemists,â⬠said Keith loftily. He'd relaxed a little, probably thinking the stories about Abe were overrated. Fool. ââ¬Å"You've undoubtedly heard of him.â⬠ââ¬Å"Undoubtedly,â⬠said Abe. ââ¬Å"I'm sure that's what it is.â⬠He spoke so casually that no one would suspect he wasn't telling the truth. Only I knew the real reason Abe knew who Keith was, but I certainly didn't want that revealed. I also didn't want Abe dropping any more hints, which I suspected he was doing just to irk me. I tried to steer the subject away ââ¬â and get some answers for myself. ââ¬Å"I wasn't aware you were joining us, Mr. Mazur.â⬠The sweetness in my voice matched his. ââ¬Å"Please,â⬠he said. ââ¬Å"You know you can call me Abe. And I won't be staying, unfortunately. I simply came along to make sure this group arrived safely ââ¬â and to meet Clarence in person.â⬠ââ¬Å"That's very nice of you,â⬠I said dryly, sincerely doubting Abe's motives were as simple as that. If I'd learned anything, it was that things were never simple when Abe Mazur was involved. He was a puppet master of sorts. He not only wanted to observe things, he also wanted to control them. He smiled winningly. ââ¬Å"Well, I always aim to help others in need.â⬠ââ¬Å"Yeah,â⬠a new voice suddenly said. ââ¬Å"That's exactly what comes to mind when I think of you, old man.â⬠I hadn't thought anyone could shock me more than Abe, but I was wrong. ââ¬Å"Rose?â⬠The name came out as a question from my lips, even though there could be no doubt about who this newcomer was. There was only one Rose Hathaway, after all. ââ¬Å"Hey, Sydney,â⬠she said, giving me a small, crooked smile as she entered the room. Her flashing, dark eyes were friendly, but they were also assessing everything in the room, much as Eddie's gaze was. It was a guardian thing. Rose was about my height and dressed very casually in jeans and a red tank top. But, as always, there was something exotic and dangerous about her beauty that made her stand out from everyone else. She was like a tropical flower in this dark, stuffy room. One that could kill you. I'd never seen her mother, but it was easy to tell that some of her looks came from Abe's Turkish influence, like her long, dark brown hair. In the dim lighting, that hair looked nearly black. Her eyes rested on Keith, and she nodded politely. ââ¬Å"Hey, other Alchemist.â⬠Keith stared at her wide-eyed, but whether that was a reaction to us being further outnumbered or simply a response to Rose's extraordinary nature, I couldn't say. ââ¬Å"I-I'm Keith,â⬠he stammered at last. ââ¬Å"Rose Hathaway,â⬠she told him. His eyes bugged even more as he recognized the name. She strode across the room, toward Clarence, and I noted that half of her allure was simply in the way she dominated her surroundings. Her expression softened as she regarded the elderly man. ââ¬Å"I checked the house's perimeter like you asked. It's about as safe as you can make it, though your back door's lock should probably be replaced.â⬠ââ¬Å"Are you sure?â⬠asked Clarence in disbelief. ââ¬Å"It's brand new.â⬠ââ¬Å"Maybe when this house was built,â⬠came yet another new voice. Looking over to the doorway, I realized now that someone else had been with Rose when she arrived, but I'd been too startled by her to notice. Again, that was a Rose thing. She always drew the attention. ââ¬Å"It's been rusted since we moved here.â⬠This newcomer was a Moroi, which set me on edge again. That brought the count up to four Moroi and two dhampirs. I was trying very hard not to adopt Keith's attitude ââ¬â especially since I already knew some of the people here ââ¬â but it was hard to shake that overwhelming sense of Us and Them. Moroi aged like humans, and at a guess, I thought this new guy was close to my age, maybe Keith's at most. He had nice features, I supposed, with black curling hair and gray eyes. The smile he offered seemed sincere, though there was a slight sense of uneasiness in the way he stood. His gaze was fixed on Keith and me, intrigued, and I wondered if maybe he didn't spend a lot of time with humans. Most Moroi didn't, though they didn't share the same fears about our race as we did about theirs. But then, ours didn't use theirs as food. ââ¬Å"I'm Lee Donahue,â⬠he said, extending his hand. Once again, Keith didn't take it, but I did and introduced us. Lee looked back and forth between me and Keith, face full of wonder. ââ¬Å"Alchemists, right? I've never met one of you. The tattoos you guys have are beautiful,â⬠he said, eyeing the gold lily on my cheek. ââ¬Å"I've heard about what they can do.â⬠ââ¬Å"Donahue?â⬠asked Keith. He glanced between Lee and Clarence. ââ¬Å"Are you related?â⬠Lee gave Clarence an indulgent look. ââ¬Å"Father and son.â⬠Keith frowned. ââ¬Å"But you don't live here, do you?â⬠I was surprised that this, of all things, would draw him out. Maybe he didn't like the idea that his intel was faulty. He was Palm Springs' Alchemist, after all, and he'd believed Clarence was the only Moroi in the area. ââ¬Å"Not regularly, no,â⬠said Lee. ââ¬Å"I go to college in LA, but my schedule's just part-time this semester. So, I want to try to spend more time with Dad.â⬠Abe glanced at Rose. ââ¬Å"You see that?â⬠he said. ââ¬Å"Now that's devotion.â⬠She rolled her eyes at him. Keith looked like he had more questions about this, but Clarence's mind was still back in the conversation. ââ¬Å"I could've sworn I had that lock replaced.â⬠ââ¬Å"Well, I can replace it soon for you if you want,â⬠said Lee. ââ¬Å"Can't be that hard.â⬠ââ¬Å"I think it's fine.â⬠Clarence rose unsteadily to his feet. ââ¬Å"I'm going to take a look.â⬠Lee hurried to his side and shot us an apologetic look. ââ¬Å"Does it have to be right now?â⬠When it appeared that it did, Lee said, ââ¬Å"I'll go with you.â⬠I got the impression that Clarence frequently followed his whims, and Lee was used to it. I used the Donahues' absence to get some answers I'd been dying to know. I turned to Jill. ââ¬Å"You didn't have any problems getting here, did you? No more, um, incidents?â⬠ââ¬Å"We ran into a couple dissidents before we left Court,â⬠said Rose, a dangerous note in her voice. ââ¬Å"Nothing we couldn't handle. The rest was uneventful.â⬠ââ¬Å"And it's going to stay that way,â⬠said Eddie matter-of-factly. He crossed his arms over his chest. ââ¬Å"At least if I have anything to do with it.â⬠I glanced between them, puzzled. ââ¬Å"I was told there'd be a dhampir alongâ⬠¦ did they decide to send two?â⬠ââ¬Å"Rose invited herself along,â⬠said Abe. ââ¬Å"Just to make sure the rest of us didn't miss anything. Eddie's the one who will be joining you at Amberwood.â⬠Rose scowled. ââ¬Å"I should be the one staying. I should be Jill's roommate. No offense, Sydney. We need you for the paperwork, but I'm the one who's gotta kick anyone's ass who gives Jill trouble.â⬠I certainly wasn't going to argue against that. ââ¬Å"No,â⬠said Jill, with surprising intensity. She'd been quiet and hesitant the last time I'd seen her, but her eyes grew fierce at the thought of being a burden to Rose. ââ¬Å"You need to stay with Lissa and keep her safe. I've got Eddie, and besides, no one even knows I'm here. Nothing else is going to happen.â⬠The look in Rose's eyes said she was skeptical. I also suspected she didn't truly believe anyone could protect either Vasilisa or Jill as well as she could. That was saying something, considering the young queen was surrounded in bodyguards. But even Rose couldn't be everywhere at once, and she must have had to choose. Her words made me turn my attention back to Jill. ââ¬Å"What did happen?â⬠I asked. ââ¬Å"Were you hurt? We heard stories about an attack but no confirmation.â⬠There was a heavy pause in the room. Everyone except Keith and me seemed distinctly uncomfortable. Well, we were uncomfortable ââ¬â but for other reasons. ââ¬Å"I'm fine,â⬠said Jill at last, after a sharp look from Rose. ââ¬Å"There was an attack, yeah, but none of us were hurt. I mean, not seriously. We were in the middle of a royal dinner when we were attacked by Moroi ââ¬â like, Moroi assassins. They made it look like they were going for Lis ââ¬â for the queen, but instead came for me.â⬠She hesitated and dropped her eyes, letting her long, curly brown hair fall forward. ââ¬Å"I was saved, though, and the guardians rounded them up.â⬠There was a nervous energy to Jill that I remembered from before. It was cute and made her seem very much like the shy teenager she was. ââ¬Å"But we don't think they're all gone, which is why we have to stay away from Court,â⬠explained Eddie. Even as he directed his words to Keith and me, he radiated a protectiveness toward Jill, daring anyone to challenge the girl he was in charge of keeping safe. ââ¬Å"And we don't know where the traitors in our own ranks are. So, until then, here we all are.â⬠ââ¬Å"Hopefully not for long,â⬠said Keith. I gave him a warning look, and he seemed to realize his comment could be perceived as rude. ââ¬Å"I mean, this place can't be all that fun for you guys, with the sun and everything.â⬠ââ¬Å"It's safe,â⬠said Eddie. ââ¬Å"That's what counts.â⬠Clarence and Lee returned, and there was no more mention of Jill's background or the attack. As far as father and son knew, Jill, Eddie, and Adrian had simply fallen out of favor with important royal Moroi and were in exile here. The two Moroi men didn't know who Jill really was and believed that the Alchemists were helping her due to Abe's influence. It was a web of lies but a necessary one. Even if Clarence was in self-imposed exile, we couldn't risk him (or Lee now) accidentally letting outsiders know the queen's sister was holed up here. Eddie glanced over at the older Moroi. ââ¬Å"You said you've never heard of any Strigoi being around here, right?â⬠Clarence's eyes went unfocused for a moment as his thoughts turned inward. ââ¬Å"Noâ⬠¦ but there are worse things than Strigoiâ⬠¦Ã¢â¬ Lee groaned. ââ¬Å"Dad, please. Not that.â⬠Rose and Eddie were on their feet in an instant, and it was a wonder they didn't pull out weapons. ââ¬Å"What are you talking about?â⬠demanded Rose. ââ¬Å"What other dangers are there?â⬠asked Eddie, his voice like steel. Lee was actually blushing. ââ¬Å"Nothingâ⬠¦ please. It's a delusion of his, that's all.â⬠ââ¬Ëâ⬠Delusion?'â⬠asked Clarence, narrowing his eyes at his son. ââ¬Å"Was your cousin's death a delusion? Is the fact that those high-ups at Court let Tamara go unavenged a delusion?â⬠My mind spun back to a conversation I'd had with Keith in the car. I gave Clarence what I hoped was a reassuring look. ââ¬Å"Tamara was your niece, right? What happened to her, sir?â⬠ââ¬Å"She was killed,â⬠he said. There was a dramatic pause. ââ¬Å"By vampire hunters.â⬠ââ¬Å"I'm sorry, by what?â⬠I asked, certain I'd misheard. ââ¬Å"Vampire hunters,â⬠repeated Clarence. Everyone in the room looked as surprised as I felt, which was a small relief. Even some of Rose and Eddie's fierceness wavered. ââ¬Å"Oh, you won't find that anywhere ââ¬â not even in your records. We were living in Los Angeles when they got her. I reported it to the guardians, demanded they hunt the culprits down. Do you know what they said?â⬠He peered at each person in turn. ââ¬Å"Do you?â⬠ââ¬Å"No,â⬠said Jill meekly. ââ¬Å"What did they say?â⬠Lee sighed and looked miserable. Clarence snorted. ââ¬Å"They said there was no such thing. That there was no evidence to support my claim. They ruled it a Strigoi killing and said there was nothing anyone could do, that I should be grateful she wasn't turned.â⬠I looked at Keith, who again seemed startled by this story. He apparently didn't know Clarence as well as he'd claimed. Keith had known the old man had a hang-up involving his niece, but not the extent of it. Keith gave me a small shrug that seemed to say, See? What did I tell you? Crazy. ââ¬Å"The guardians are very thorough,â⬠said Eddie. His tone and words were both clearly chosen with care, striving not to offend. He sat back down next to Jill. ââ¬Å"I'm sure they had their reasons.â⬠ââ¬Å"Reasons?â⬠asked Clarence. ââ¬Å"If you consider denial and living a delusional life reasons, then I suppose so. They just don't want to accept that vampire hunters are out there. But tell me this. If my Tamara was killed by Strigoi, why did they cut her throat? It was cut cleanly with a blade.â⬠He made a slashing motion under his chin. Jill flinched and cowered into her chair. Rose, Eddie, and Abe also looked taken aback, which surprised me because I didn't think anything would make that group squeamish. ââ¬Å"Why not use fangs? Makes it easier to drink. I pointed that out to the guardians, and they said that since about half of her blood had been drunk, it was obviously a Strigoi. But I say a vampire hunter did it and made it look like they took her blood. Strigoi would have no reason to use a knife.â⬠Rose started to speak, paused, and then began again. ââ¬Å"It is strange,â⬠she said calmly. I had a feeling she'd probably been about to blurt out how ridiculous this conspiracy theory was, but had thought better of it. ââ¬Å"But I'm sure there's another explanation, Mr. Donahue.â⬠I wondered if mentioning that the Alchemists had no records of vampire hunters ââ¬â not in several centuries, at least ââ¬â would be helpful or not. Keith suddenly took the conversation in an unexpected direction. He met Clarence's gaze levelly. ââ¬Å"It might seem strange for Strigoi, but they do all sorts of vicious things for no reason. I know from personal experience.â⬠My stomach sank. Oh no. All eyes turned to Keith. ââ¬Å"Oh?â⬠asked Abe, smoothing his black goatee. ââ¬Å"What happened?â⬠Keith pointed to his glass eye. ââ¬Å"I was attacked by Strigoi earlier this year. They beat me up and ripped out my eye. Then they left me.â⬠Eddie frowned. ââ¬Å"Without drinking or killing? That is really weird. That doesn't sound like normal Strigoi behavior.â⬠ââ¬Å"I'm not sure you can really expect Strigoi to do anything ââ¬Ënormal,'â⬠pointed out Abe. I gritted my teeth, wishing he wouldn't engage Keith in this. Please don't ask about the eye, I thought. Let it go. That was too much to expect, of course, because Abe's next question was, ââ¬Å"They only took the one eye? They didn't try for both?â⬠ââ¬Å"Excuse me.â⬠I rose before Keith could answer. I couldn't sit through this conversation and listen to Abe bait Keith, simply for the fun of tormenting me. I needed to escape. ââ¬Å"Iâ⬠¦ I don't feel well. I'm going to get some air.â⬠ââ¬Å"Of course, of course,â⬠said Clarence, looking as though he wanted to rise as well. ââ¬Å"Should I have my housekeeper get you some water? I can ring the bell ââ¬â ââ¬Å" ââ¬Å"No, no,â⬠I said, moving toward the door. ââ¬Å"I justâ⬠¦ I just need a minute.â⬠I hurried out and heard Abe saying, ââ¬Å"Such delicate sensibilities. You'd think she wouldn't be so squeamish, considering her profession. But you, young man, seem like you can handle talking about bloodâ⬠¦Ã¢â¬ Abe's ego-stroking worked, and Keith launched into the one story I most definitely didn't want to hear. I went back down the dark hallway and emerged outside. The fresh air was welcome, even if it was more than twenty degrees warmer than what I'd come from. I took a deep, steadying breath, forcing myself to stay calm. Everything was going to be okay. Abe would be leaving soon. Keith would return to his own apartment. I would go back to Amberwood with Jill and Eddie, who really didn't seem like bad companions, considering who I could have ended up with. With no real destination in mind, I decided to walk around and scope out Clarence's home ââ¬â more like an estate, really. I picked a side of the house at random and walked around, admiring the detailed sculpting of the house's exterior. Even if it was hopelessly out of place in the southern California landscape, it was still impressive. I had always loved studying architecture ââ¬â a subject my father thought was pointless ââ¬â and was impressed by my surroundings. Glancing around, I noted that the grounds didn't match the rest of what we'd driven through to get here. A lot of the land in this region had gone brown from summer and lack of rain, but Clarence had clearly spent a fortune to keep his sprawling yard lush and green. Non-native trees ââ¬â beautiful and full of flowers ââ¬â were artfully arranged to make walking paths and courtyards. After several minutes of my nature stroll, I turned around and headed back toward the front of the house. I came to a stop when I heard someone. ââ¬Å"Where are you?â⬠a voice asked. Abe. Great. He was looking for me. ââ¬Å"Over here,â⬠I just barely heard Adrian say. His voice came from the far side of the house, opposite the side I was on. I heard someone walk across the gravel driveway, the footsteps coming to a halt when they reached what I gauged to be the back door where Abe stood. I bit my lip and stayed where I was, concealed by the house. I was almost afraid to breathe. With their hearing, Moroi could pick up the tiniest detail. ââ¬Å"Were you ever coming back?â⬠asked Abe, amused. ââ¬Å"Didn't see the point,â⬠was Adrian's laconic response. ââ¬Å"The point is politeness. You could have made an effort to meet the Alchemists.â⬠ââ¬Å"They don't want to meet me. Especially the guy.â⬠There was concealed laughter in Adrian's voice. ââ¬Å"You should have seen his face when I ran into him at the door. I wish I'd had a cape on. The girl's at least got some nerve.â⬠ââ¬Å"Nevertheless, they play a crucial role in your stay here ââ¬â and Jill's. You know how important it is that she remain safe.â⬠ââ¬Å"Yeah, I get that. And I get why she's here. What I don't get is why I'm here.â⬠ââ¬Å"Don't you?â⬠asked Abe. ââ¬Å"I'd assume it's obvious to both Jill and you. You have to stay near her.â⬠There was a pause. ââ¬Å"That's what everyone saysâ⬠¦ but I'm still not sure it's necessary. I don't think she needs me close by, no matter what Rose and Lissa claim.â⬠ââ¬Å"You have something better to do?â⬠ââ¬Å"That's not the point.â⬠Adrian sounded annoyed, and I was glad that I wasn't the only one Abe had that effect on. ââ¬Å"That's exactly the point,â⬠Abe said. ââ¬Å"You were wasting away at Court, drowning in your own self-pity ââ¬â among other things. Here, you have a chance to be useful.â⬠ââ¬Å"To you.â⬠ââ¬Å"To yourself as well. This is an opportunity for you to make something of your life.â⬠ââ¬Å"Except you won't tell me what it is I'm supposed to do!â⬠said Adrian irritably. ââ¬Å"Aside from Jill, what is this great task you have for me?â⬠ââ¬Å"Listen. Listen and watch.â⬠I could perfectly picture Abe stroking his chin in that mastermind way of his again as he spoke. ââ¬Å"Watch everyone ââ¬â Clarence, Lee, the Alchemists, Jill and Eddie. Pay attention to every word, every detail, and report it to me later. It may all be useful.â⬠ââ¬Å"I don't know that that really clears things up.â⬠ââ¬Å"You have potential, Adrian. Too much potential to waste. I'm very sorry for what happened with Rose, but you have to move on. Maybe things don't make sense now, but they will later. Trust me.â⬠I almost felt bad for Adrian. Abe had once told me to trust him too, and look how things had turned out. I waited until the two Moroi returned inside and then followed a minute later. In the living room, Keith was still wearing his cocky attitude but looked relieved to have me back. We discussed more details and worked out a schedule for feedings, one I was in charge of maintaining since I'd have to drive Jill (and Eddie, since he didn't want to let her out of his sight) back and forth to Clarence's. ââ¬Å"How are you going to get to feedings?â⬠I asked Adrian. After hearing his conversation with Abe, I was now more curious than ever about his role here. Adrian was standing against the wall, on the opposite side of the room. His arms were crossed defensively, and there was a rigidness to his posture that conflicted with the lazy smile he wore. I couldn't be sure, but it looked as though he was purposely positioning himself as far from Rose as possible. ââ¬Å"By walking down the hall.â⬠Seeing my puzzled look, Clarence explained, ââ¬Å"Adrian will be staying here with me. It will be nice to have someone else in these old walls.â⬠ââ¬Å"Oh,â⬠I said. To myself, I muttered, ââ¬Å"How very Secret Garden.â⬠ââ¬Å"Hmm?â⬠asked Adrian, tilting his head toward me. I flinched. Their hearing was good. ââ¬Å"Nothing. I was just thinking of a book I read.â⬠ââ¬Å"Oh,â⬠said Adrian dismissively, glancing away. The way he said the word seemed to be a condemnation of books everywhere. ââ¬Å"Don't forget me,â⬠said Lee, grinning at his father. ââ¬Å"I told you I'll be around more.â⬠ââ¬Å"Maybe young Adrian here will keep you out of trouble, then,â⬠declared Clarence. No one said anything to that, but I saw Adrian's friends exchange a few amused glances. Keith didn't look nearly as freaked out as he had when we'd arrived, but there was a new air of impatience and irritability in him that I didn't quite understand. ââ¬Å"Well,â⬠he said, after clearing his throat. ââ¬Å"I need to get home and take care of some business. And since you're my ride, Sydneyâ⬠¦Ã¢â¬ He left the words hanging but looked at me meaningfully. From what I'd learned, I was more convinced than ever that Palm Springs was the least active vampire area anywhere. I couldn't honestly figure out what ââ¬Å"businessâ⬠Keith would have to take care of, but we had to leave here sooner or later. Eddie and Jill went to gather their luggage, and Rose used the opportunity to pull me aside. ââ¬Å"How have you been?â⬠she asked in a low voice. Her smile was genuine. ââ¬Å"I've been worried about you, ever sinceâ⬠¦ well, you know. No one would tell me what happened to you.â⬠The last time I'd seen her, I'd been held prisoner in a hotel by guardians while the Moroi tried to figure out how big my role had been in Rose's escape. ââ¬Å"I was in a little trouble at first,â⬠I said. ââ¬Å"But it's past.â⬠What was a small lie between friends? Rose was so strong that I couldn't stand the thought of looking weak in front of her. I didn't want her to know that I still lived in fear of the Alchemists, forced to do whatever it took to get back in their good graces. ââ¬Å"I'm glad,â⬠she said. ââ¬Å"They told me originally it was your sister that was going to be here.â⬠Those words reminded me again how Zoe could replace me at any moment. ââ¬Å"It was a mix-up.â⬠Rose nodded. ââ¬Å"Well, I feel a little better with you here, but it's still hardâ⬠¦ I still feel like I should protect Jill. But I need to protect Lissa too. They think Jill's the easier target, but they're still going after Lissa.â⬠The inner turmoil shone in her dark eyes, and I felt a pang of pity. This was what I'd had trouble explaining to the other Alchemists, how dhampirs and vampires could seem so human at times. ââ¬Å"It's been crazy, you know. Ever since Lissa took the throne? I thought I'd finally get to relax with Dimitri.â⬠Her smile broadened. ââ¬Å"I should've known nothing's ever simple with us. We've spent all our time looking out for Lissa and Jill.â⬠ââ¬Å"Jill will be okay. As long as the dissidents don't know she's here, it should all be easy. Boring, even.â⬠She was still smiling, but her smile had dimmed a little. ââ¬Å"I hope so. If you only knew what had happenedâ⬠¦Ã¢â¬ Her expression changed as some memory seized her. I started to insist she tell me what had happened, but she shifted the subject before I could. ââ¬Å"We're working on changing the law ââ¬â the one that says Lissa needs one family member in order to stay queen. Once that's done, both she and Jill will be out of danger. But that just means those who want to take out Jill are more insane than ever, because they know the clock's ticking.â⬠ââ¬Å"How long?â⬠I asked. ââ¬Å"How long will it take to change the law?â⬠ââ¬Å"I don't know. A few months, maybe? Legal stuffâ⬠¦ well, it's not my thing. Not the details of it, at least.â⬠She grimaced briefly and then became battle tough again. She tossed her hair over one shoulder. ââ¬Å"Crazy people who want to hurt my friends? That is my thing, and believe me, I know how to deal with it.â⬠ââ¬Å"I remember,â⬠I said. It was weird. I thought of Rose as one of the strongest people I knew, yet it seemed as though she needed my assurance. ââ¬Å"Look, you go do what you do, and I'll do what I do. I'll make sure Jill blends in. You guys got her out without anyone knowing. She's off the grid now.â⬠ââ¬Å"I hope so,â⬠Rose repeated, voice grim. ââ¬Å"Because if she's not, your little group here doesn't stand a chance against those crazy rebels.ââ¬
Sunday, September 1, 2019
Government Merit Systems
Elimination of Merit Systems For many reasons, merit based civil service systems have come under assault and yet at the same time have been hailed. Merit systems do however attempt and achieve many important objectives including ensuring that an effective workforce is attracted and maintained by providing protections against arbitrary termination and by attempting to avert politically influenced hiring and promotions. Notwithstanding, the way merit systems go about attracting a workforce and the varied protections against termination are the cause of antipathy. Many would agree that a better civil service system is needed. This better civil service system should reward good service and punish bad or mediocre service with dismissal or no promotion. Equally important, this new system has to have a process to hire quality employees quickly. However, this better system needs to have all the mechanisms that are in the current merit systems to protect against corruption. This paper argues in favor of eliminating both merit system protections and merit in hiring and promotions, while at the same time evaluating the various arguments against merit systems. In public administration literature, it is argued that in order for the bureaucracy to be both efficient and effective, it has to be staffed by tenured bureaucrats who feel relatively secure in their positions and receive adequate compensation. The bureaucracy attains its power from the experience of its workforce. Indeed, the bureaucracy is made up of ââ¬Å"seasoned and knowledgeable ââ¬Ëold hands'â⬠who have molded relations with organizations and government itself (Kaufman 2001, 8-42). Therefore, if returning to a spoils system results in arbitrary terminations the bureaucracy would be robbed of the most experienced administrators who bestow effectiveness within an agency. An important point regarding the removal of protections against arbitrary terminations is made by Charles T. Goodsell who argues that removing protections causes an ââ¬Å"Am I Next? â⬠mindset to occur where employees agonize over the threat of termination and which in itself can result in diminished effectiveness (1998, 653-660). In a related way to the ââ¬Å"Am I Next? â⬠syndrome is a breakdown of the ââ¬Å"politics administration dichotomyâ⬠where administrators fearing termination would only perform those duties to please the administration (Durant 1998, 643-653). Accordingly, a break down in the ââ¬Å"politics administration dichotomyâ⬠would seem to some to signal an increase in corruption and overall unethical behavior. Corruption is one of the big factors for the creation and continuance of a merit system. Those opposed to removing merit factors cite the abuses that occurred in the nineteenth century prior to the Pendleton Act. Also, tenured civil servants are necessary to assure that political appointees obey the lawâ⬠(Maranto 1998, 623-643). Speaking about this was a Washington journalist, who argued that it was tenured civil servants of the Central Intelligence Agency and the Federal Bureau of Investigation who blew the whistle during the Watergate scandal and for this purpose tenured civil servant are needed to serve alongside appointees (Maranto 1998, 623-643). However, Robert Maranto who is a proponent of a alternative systems, points out several occurrences where tenured civil servants and political appointees worked together, such as in the Department of Housing and Urban Development scandals during the Regan administration. Specifically, Maranto argues that when any organization, private or public is under investigation ââ¬Å"it reacts by closing ranks to outsiders and shunning suspected whistle-blowersâ⬠(1998, 623-643). Using this rationale, it could appear that having no tenure protections is the same as having tenure protections with regard to whistle-blowing. Maranto furthers the argument of corruption stating that ââ¬Å"regular rotation of some political officials as ââ¬Ëin-and-outers' helps uncover scandals because incoming appointees are not tied to existing corrupt practices, can claim credit for ending them, are not as protective of organization reputation, and have sufficient political pull outside the organization to weather attacks of those withinâ⬠(1998, 623-643). Indeed, as pointed out by Maranto, the scandals of Andrew Jackson's administration had actually begun under the previous administration and were uncovered by Jackson appointees. Another argument offered by Murray was that to cite the difficulties presidents Clinton, Bush (1st), Regan and Carter had in filling executive branch positions that required presidential appointments. His argument is that if an administration is unable to fill important political positions than it is doubtful an administration ââ¬Å"will put much urgency in finding a nominee for positions currently filled by career bureaucratsâ⬠(1998, 70-677). His argument was meant to conclude that if there is a weak administration many positions will go unfilled and result in diminished effectiveness. Nonetheless, his argument against a spoils system citing a weak presidency is apt in arguing that there will not be a massive partisan termination following elections. Moreover, there have been several Supreme Court rul ings which prohibit hiring, promotion, termination and even the awarding of contracts based on politics. Eisenhart distinguishes between five categories of public sector employees: 1)full-time permanent employees protected by some form of civil service system; 2) at-will employees who can be fired at anytime for any reason so long as the reason is not illegal; 3) contractual employees; 4) temporary employees; and 5) independent contractors (Eisenhart 1998, 58-69). These five categories of employees within the public sector are covered by Supreme Court rulings. In 1976, the U. S. Supreme Court ruled in Elrod v. Bums (427 U. S. 347) that it was unconstitutional for the newly elected Democratic Sheriff of Cook County to dismiss all employees who were hired under the previous Republican administration whose positions were not in policymaking areas where political loyalty would be required. Another ruling by the U. S. Supreme Court was in 1990, Rutan v. The Republican Party of Illinois (497 U. S. 62). The U. S. Supreme Court ruled that it was unconstitutional for the Republican governor of Illinois to require applicants for hire, promotion, transfer and recall from layoff to obtain recognition from the Republican Party of Illinois prior to service. In 1996, the Seventh Circuit Court of Appeals ruled the Rutan decision applied to temporary employees as well. For several reasons it is unlikely an administration would commence large scale terminations after each new election. Even with a return to a spoils system an administration would not introduce massive terminations of productive workers for several reasons. First, as Kernell and McDonald argue, ââ¬Å"the new breed of office-holding politicians who entered Congress at the end of the nineteenth century saw greater electoral payoffs from providing direct services to their constituencies than from subsidizing local party organizations. Thus they eschewed patronage for the merit systemâ⬠(Ruhil and Camoes 2003, 27-43). This reflects twenty-first century American society more than it did in the nineteenth century. Also, the expensiveness of mass terminations would prevent government from mass terminations of productive employees. As argued by Kellough and Osuna ââ¬Å"turnover also holds the potential for enormous organizational costs, including the direct costs of hiring and training new employees as well as significant in direct costs associated with lower productivity levels from newer employees and opportunity costs from situations requiring more experienced workers to provide task assistance to new colleagues (Kellough and Osuna 1995, 58-68). Indeed, research by the Saratoga Institute proposed that the replacement cost of an employee is between one and two times the individualââ¬â¢s salary. In another study by the Keener-Tregoe Business Issues Research Group it was estimated that it costs approximately $134,000 to replace a human resource manager in the automotive industry (Selden & Moynihan 2000, 63-74). For this reason it is just unlikely that government would commence with large scale terminations as those who are against the spoils systems contend. Equally important it is extremely expensive to run a merit system and as a result a lot of poorer states and local governments just cannot continue with the expansive hiring, promotion and discharge protocols. For instance, in a local government in the state of Michigan written test were administered to six hundred applicants for just a few vacancies, and followed up with oral examinations for all those found qualified by the written exam. It is argued that such a process is ââ¬Å"neither practical nor an efficient use of limited government resourcesâ⬠(Leidlein 1993, 391-392). As a result a lot of states and local governments have tweaked their own merit systems resulting in abandonment of some merit principles or abandoning the principles all together. This situation is exemplified by Jay M. Shafritz, who argues that there is a ââ¬Å"nether world of public personnel administrationâ⬠which often exists to circumvent the maze of merit systems (1974, 486-492). For instance, in both the city of New Haven, Connecticut and the state of Idaho the personnel systems there were so time consuming they begun hiring temporaries in an effort to speed the process (Jorgensen et al. 1996, 5-20). Moreover, in Florida, Georgia and Virginia merit principles have been removed and have resulted in efficient government activities. For example, in the state of Georgia, merit protections have been removed entirely for state civil servants hired after June 30, 1996; employees hired prior to July 1, 1996 are still covered by the traditional merit system protections. In the state of Florida, merit protections were removed for all state civil servants on May 14, 2001. The result is in both Georgia and Florida, ââ¬Å"civil servants can be hired, promoted, disciplined and fired quickly and with relative impunity; they [civil servants] accrue no seniority and therefore have no bumping rights whatsoeverâ⬠(Walters 2003, 34-80). Nonetheless, in regards to Floridaââ¬â¢s new civil service system, Mark Neimeiser, from Council 79 for the American Federation of State, County and Municipal Employees which represents most of the stateââ¬â¢s rank-and-file employees states that: It [Floridaââ¬â¢s new system] exposes state workers who enforce regulations and license businesses and professionals to the risk of retribution for pursuing cases against politically well-connected Floridians. Second, it leaves higher-salaried senior staff exposed to the whims of departmental budget cutters who, like a sports-team owner trying to meet a salary cap, might be tempted to off-load more senior, high-paid staff just to save money, regardless of what it means by way of institutional brain drain or employee morale (Walters 2003, 34-80). However, according to Walters it seems that their concerns are valid. He details how there are several former employees who blew the whistle and were terminated for political reasons, either because they took regulatory action against an ally of the governor or because they were Democrats. Notwithstanding, Walters does point out that ââ¬Å"Depending on one's view of the spoils system and what it ought to deliver to whom, such stories are either shocking or just par for the political course and no different than stories that filter out of Albany, Springfield or Sacramento whenever there's a change of party, regardless of the civil service rulesâ⬠(Walters 2003, 34-80). Nevertheless, Walters does point out that there is ample evidence showing that there was widespread removal of long time employees in various Florida agencies. Yet, he does note that most of the laid-off employees were given the option of taking other jobs in government. According to AFSCME, the jobs offered typically represented demotions in both rank and pay. For example, a group of employees in the Department of Business and Professional Regulation were terminated, then allowed to reapply for jobs paying 25 percent less (Walters 2003, 34-80). As pointed out previously, one of the necessary factors for retaining workers is relative job security. And as such if termination protections are removed, it is believed a large turnover in the bureaucracy would occur (Godsell 1998, 653-660). However, a study on turnover in state government which specifically studied the environmental, organizational, and individual factors for turnover found that one determinant that prevented large turnovers was pay increases and promotions (Selden & Moynihan 2000, 63-74). Charles W. Gossett conducted a survey in the Georgia Department of Juvenile Justice testing hypotheses on organizational loyalty, job mobility, and performance responsiveness between the workers covered by those hired after June 30, 1996 who has no civil service protections and those hired prior to July 1, 1996 whom still are covered by civil service protections (2003, 267-278). Some of Gossett's findings were that there were no substantial differences between the protected and un-protected civil servants in voluntary turnover and concern for the agency. However, Gossett's research did determine that un-protected workers are more willing to seek promotion within the agency and view themselves as needing to be more responsive to management because they feel they can be disciplined for any minor infractions (2003, 277). The purpose of this essay was to argue against and examine the arguments against eliminating merit systems. Given the importance of achieving an efficient and effective public workforce, it is essential to know whether eliminating merit protections and procedures will result into a more efficient and effective workforce. From the literature, it appears that the elimination of merit systems pose no horrific menace. Most of the arguments against removing merit factors, center on effectiveness and efficiency. The opponents argue that the removal of merit factors will result in hiring, promotion and termination based on political considerations. However, there are numerous federal laws, state laws and court decisions to protect every possible category of employee employed by government. Also, as evidenced in Georgia, non-protected workers tend to be more responsive to management which is good because it increases the effectiveness of executive leadership. For this purpose, chief executives are able to deliver on their promises. Getting rid of merit principles also allows government to hire qualified individuals quickly and cost effectively. Works Cited Durant, Robert F. 1998. Rethinking the unthinkable: A cautionary note. Administration & Society 29 (January): 643-653. Gossett, Charles W. 2003. The changing face of Georgia's merit system: results from an employee attitude survey in the Georgia Department of Juvenile Justice. Public Personnel Management 32 (Summer): 267-278. Hamilton, David K. 1999. The continuing judicial assault on patronage. Public Administration Review 59. (January): 54-62. Jorgensen, Lorna, Kelli Patton and W. David. 1996. Underground merit systems and the balance between service and compliance. Review of Public Personnel Administration 16 (Spring): 5-20. Kaufman, Herbert. 2001. Major players: Bureaucracies in American government. Public Administration Review 61. (January/February): 18-42. Leidlein, James E. 1993. In search of merit. Public Administration review 53 (July/August): 391-392. Maranto, Robert. 1998. Thinking the unthinkable in public administration: A case for spoils in the federal bureaucracy. Administration & Society 29 (January): 623-633. Ruhil, Anirudh V. S. and Pedro J. Camoes. 2003. What lies beneath: The political roots of state merit systems. Journal of Public Administration Research and Theory 13. (January): 27-43. Selden, Sally Coleman and Donald P. Moynihan. 2003. A model of voluntary turnover in state government. Review of Public Personnel 20 (Spring) 63-74. Walters, Jonathan. 2003. Civil service tsunami. Governing 16 (May): 34-40. ________. 1997a. Who needs civil service. Governing 10 (August): 17-21. West, William E. and Robert F. Durant. 2000. Merit, management, and neutral competence: Lessons from the U. S. Merit Systems Protection Board, FY 1988-FY 1997. Public Administration Review 60 (March/April): 111-122. Cross-agency comparisons of quit rates in the Federal Service: Another look at the evidence Author: Kellough, J Edward; Osuna, Will Source: Review of Public Personnel Administration v15n4, (Fall 1995): p. 58-68 (Length: 11 pages) ISSN: 0734-371X Number: 01152472 Copyright: Copyright Institute of Public Affairs 1995 Shafritz, J. (1974). ââ¬Å"The Cancer Eroding Public Personnel Professionalism. â⬠Public Personnel Management 3, 3 : 486-492
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