Customers Relationship Management at PT Unilever Tbk
Customers Relationship Management(CRM)helps companies improve the provitability of their interaction with customers while at the same time making the interactions appear friendlier through individualization. Ti succeed with CRM, companies need to match product and campaigns to prospect and customers-in other words, to intelligently manage the customers life cycle.
At the present time the business orientation of an enterprise is not only seen from how much the goods are sold or how much the amount of benefits obtained. Developments in the business world aware of employers to better understand their customer needs. Customer satisfaction is very important orientations for the sustainability of the company's product. Of satisfaction that formed it will arise a high loyalty to the product. To be familiar with any factors that can increase customer satisfaction, the company must have a network of good relationships with customers. This requirement became the forerunner to make a system to understand customer needs, maintain customer loyalty, and provide added value to our customers in conducting business or transactions with the company. Unilever Indonesia is engaged in the manufacture of food, beverage and medical equipment is aware of the need to create high customer loyalty towards its products. With the rapid competition among competitors in the food industry, beverage and medical supplies the company with large market level such as Unilever Indonesia are required to have the advantage of the benefits that a competitive advantage in competing. Unilever Indonesia implement Customer Relationship Management (CRM) to win the competition in maintaining relationships with customers and attract new customers. Through this program customers in particular are expected to retail customers become loyal to the company.
The world economy today is very different from the economy two decades ago. Rapid dissemination of information is a cause of intense competition between companies in the business. The customers can easily find the information they need information about a particular product. In addition, the number of market segments caused the company to be able to determine the correct segmentation and targeting, so much have a clear business focus.
Intense competition made the company to better focus on what is desired by consumers. The main factor that needs to be understood by the company is whether the products are made in compliance with the standards of consumer desire. To accomplish this, the company must be able to provide products with good quality, cheaper prices, product information faster, and better service than its competitors. With the development of e-bussiness then the company should be able to establish an appropriate system application solutions. The company began to change the mindset of the orientation advantage (profit oriented) towards other potential factors that have not been identified previously. Clients' interest and level of customer satisfaction becomes the primary factor that must be considered by the company.
The concept of Customer Relationship Management
CRM is a business model which has the main objective to identify, anticipate, understand the needs of customers both current customers, as well as the potential to become customers by collecting information about customers, sales, marketing effectiveness, and market trends.
CRM business philosophy relies on an understanding of the lifetime value of customers and provide personalized treatment and excellent service. Now that CRM has become a facility to get knowledge as well as a whole about the customer, which will facilitate the company to provide service according to customers' needs and behavior.
The principle of CRM is located on the willingness of businesses to increase customer loyalty and satisfaction without increasing the costs and time. CRM is a solution that remains relevant for today's IT investment. Because if we do not understand who our customer, and what they need, then we can not retain them as loyal customers. If we are not able to retain customers, we will not be able to survive and win the business competition.
CRM itself is not a single product but rather a business strategy that is implemented by creating a unified, integrated application capable of handling various aspects of the required front office. CRM is also used to learn more about customer needs and behaviors in order to develop a closer relationship with customers.
In the implementation of CRM, the technology also has a very important role in an organization to integrate all functions within the organization to achieve organizational goals. Implementing a CRM strategy is not only a means to improve services to customers, but to create interactions that are consistent, reliable and easily accessible in every interaction between customer and company.
CRM Systems in Business Process
Many packages were created to facilitate customer relationship, but mostly depends on the acquisition, updating and utilization of individual customer profiles. Customer profiles are usually stored in a data warehouse and data mining is used for extracting information relating to the company from customers concerned. Furthermore, this customer profile connected on line so that those working in the enterprise may contact the customer concerned. In addition, Web-based front-ends have been created so that customers can contact the company online(like the facebook , yahoo messager and the other facilities of online) to get information about products or services offered by the company, booked orders, check status of existing orders, get answers to questions or to obtain service. By the facebook the company can see what the customers hobbies and they always use in their live so they company can produce the product what the customer need and want. I think the facebook is very important for the company to make the relationship with the customers every the were. CRM software packages help companies to market, sell, and service customers through multiple media, including Web, call centers, field representatives, business partners, retail and dealer networks.
Selasa, 14 Desember 2010
Bullwhip Effect in Supply Chains at The Brand of Zara Spanish Fashion
Some companies now use the strategy of maintaining a chain supply (supply chain) in the control or maintain the market, one which is the garment industry. Constraints that often arises is the existence error information received where one result is stock uncertainty that occurs in channels of supply chain. Uncertainty is the main indicator in the bullwhip problem effect.
I want to describes the history of ZARA's success and supply chain, bullwhip effect, and then combined with a successful practice in the supply chain ZARA, ZARA analysis eliminate the bullwhip effect of supply chains of some key aspects.
Spanish fashion brand of ZARA cause rapid reaction known in the fashion industry, the pattern of success and innovation to become the industry benchmark. Annual ZARA 12,000 different types of products for customers to choose the project, from design concept to finished product has been added only 10 days.
Spain's Inditex is ranked first, third world clothing retailer, in 52 countries around the world with nearly 2,000 stores, including Inditex, 9 ZARA is the most famous brand in the pre-eminent brand, called "the fashion industry DELL computers", European research is considered the most brand value .
ZARA founding in 1985, is a clothing brand, also a franchise chain of retail brand clothing brand ZARA. ZARA is owned and operated company sticks to almost any chain network principles, while putting in a lot of money to build their own factories and Yipian logistics systems "five-finger understand customer needs, controls five other fingers production", rapid response to market demand, for provide customers with "affordable fast fashion."
ZARA extraordinarily successful operation of the company's benefit management of the entire apparel industry supply chain, and support rapid response supply chain IT systems. ZARA companies to adopt a "fast, small, some kind of" brand management model, while maintaining and fashion, by combining the development of new models, rapid introduction of new products, and man-made causes "out" to achieve rapid design, rapid production, sale quick, quick update, store merchandise is updated twice a week goal.
Bullwhip Effect
In the supply chain, there is often an example of inaccurate predictions, the demand is not a week, instability of supply, coordination and cooperation among sexually-firm, between Zaocheng lack of supply, production and transportation average Kucun Zuoye high, too high Xian Xiang Cheng Ben. The root cause of this problem there are many, but one of the reasons is the bullwhip effect.
Bullwhip effect is an amplification of supply chain demand variability (variance amplification) phenomenon, is the flow of information from the end client-side delivery to the original supplier, can not effectively realize the sharing of information, making information distortion amplification step by step, led to increased demand for information appears fluctuations. This information is distorted amplification in the graphical display as drive the rejection of the bullwhip effect, it is clearly called bullwhip effect. The root of most downstream clients is equivalent to a whip, and the most upstream suppliers is equivalent to whip the end of the tip of the Ministry, at the end of the root as long as there a little jitter, transfer to the distal end will be a big fluctuation. In the supply chain, this effect is upstream, the greater the change, the more distant from the consumer end, the greater the impact. This information is distorted and the manufacturing process if the uncertainties are added together, would cause great economic losses.
ZARA Way to Eliminate the Bullwhip Effect
ZARA brief history of success, and what the bullwhip effect, of course we think ZARA is how to overcome the bullwhip effect supply chain? In fact, ZARA in the face of supply chain bullwhip effect is very successful, the following analysis will focus on how to eliminate the bullwhip effect. To eliminate the bullwhip effect ZARA should benefit from the entire management and control model.
Entire Supply Chain Management
ZARA has a supply chain management is very well equipped: design, procurement, production, distribution and sale terminals. From design to production, to bring new clothes to stores worldwide in just 15 days. ZARA without assistance from external partners to design, warehousing, distribution and logistics, but the full embrace of all-inclusive, to maintain full control over the entire supply chain in China. ZARA's supply chain management where information is quickly passed from buyer to designer and production manager. supply chain management are also available on the flow of raw materials and products in every step of the process real-time tracking. Ultimate goal is to end customers and design, procurement, production and distribution links between upstream run as fast and direct communication.
From the customer to the store manager, store manager of market commissioner from each designer, from designers to production staff, from managers to warehouse distributors, and so forth. At most companies, different departments often have information that might impede communication bureaucracy, but ZARA organizational structure, operational processes, performance measurement, and even the layout of the office will facilitate communication on the principle. It is said that a competitor, ZARA for the supply chain is almost completely controlled. Alone are responsible for all product design and distribution, manufacturing outsourcing ratio is also lower than peers, and almost have all the shops.
ZARA control of the supply chain to enable to control the speed of product and information flows, so can the entire supply chain quickly and run a predictable rhythm. Precise rhythms began to retail outlets. All store managers twice a week under orders, in which Spain and Southern Europe at 3 pm Wednesday and Saturday at 6 pm deadline, another area on Tuesday at 3 pm and 6:00 Friday deadline. The implementation of very tight deadlines.
ZARA described above throughout the supply chain management, an important point, ZARA is supply chain management with accurate control and almost complete overall of strict control, so that the entire supply chain speed and efficiency to the highest, so it will eliminate the demand Forecast Update, limited supply and lack of game elements such as the bullwhip effect is produced, then the supply chain, from basic office to eliminate the bullwhip effect.
Order a Small Number
We know that bulk orders will have the bullwhip effect. ZARA store orders twice a week, and the store manager and demand based on existing sales orders. This is basically each to ensure that meet the needs of the next few days, so as not significant, and twice a week, orders can be sure of repetition.
IT Support For Business
Supply chain management to ensure smooth overall, to ensure effective to achieve a number of small, ZARA approach is to use IT systems that support strong for protecting. The scope of IT to effectively support the needs of customers involved in the collection of information, information on clothing, standardization, product information and inventory management and distribution management, etc., in these operations into IT support, so that processing timeliness and accuracy greatly strengthened.
Some companies now use the strategy of maintaining a chain supply (supply chain) in the control or maintain the market, one which is the garment industry. Constraints that often arises is the existence error information received where one result is stock uncertainty that occurs in channels of supply chain. Uncertainty is the main indicator in the bullwhip problem effect.
I want to describes the history of ZARA's success and supply chain, bullwhip effect, and then combined with a successful practice in the supply chain ZARA, ZARA analysis eliminate the bullwhip effect of supply chains of some key aspects.
Spanish fashion brand of ZARA cause rapid reaction known in the fashion industry, the pattern of success and innovation to become the industry benchmark. Annual ZARA 12,000 different types of products for customers to choose the project, from design concept to finished product has been added only 10 days.
Spain's Inditex is ranked first, third world clothing retailer, in 52 countries around the world with nearly 2,000 stores, including Inditex, 9 ZARA is the most famous brand in the pre-eminent brand, called "the fashion industry DELL computers", European research is considered the most brand value .
ZARA founding in 1985, is a clothing brand, also a franchise chain of retail brand clothing brand ZARA. ZARA is owned and operated company sticks to almost any chain network principles, while putting in a lot of money to build their own factories and Yipian logistics systems "five-finger understand customer needs, controls five other fingers production", rapid response to market demand, for provide customers with "affordable fast fashion."
ZARA extraordinarily successful operation of the company's benefit management of the entire apparel industry supply chain, and support rapid response supply chain IT systems. ZARA companies to adopt a "fast, small, some kind of" brand management model, while maintaining and fashion, by combining the development of new models, rapid introduction of new products, and man-made causes "out" to achieve rapid design, rapid production, sale quick, quick update, store merchandise is updated twice a week goal.
Bullwhip Effect
In the supply chain, there is often an example of inaccurate predictions, the demand is not a week, instability of supply, coordination and cooperation among sexually-firm, between Zaocheng lack of supply, production and transportation average Kucun Zuoye high, too high Xian Xiang Cheng Ben. The root cause of this problem there are many, but one of the reasons is the bullwhip effect.
Bullwhip effect is an amplification of supply chain demand variability (variance amplification) phenomenon, is the flow of information from the end client-side delivery to the original supplier, can not effectively realize the sharing of information, making information distortion amplification step by step, led to increased demand for information appears fluctuations. This information is distorted amplification in the graphical display as drive the rejection of the bullwhip effect, it is clearly called bullwhip effect. The root of most downstream clients is equivalent to a whip, and the most upstream suppliers is equivalent to whip the end of the tip of the Ministry, at the end of the root as long as there a little jitter, transfer to the distal end will be a big fluctuation. In the supply chain, this effect is upstream, the greater the change, the more distant from the consumer end, the greater the impact. This information is distorted and the manufacturing process if the uncertainties are added together, would cause great economic losses.
ZARA Way to Eliminate the Bullwhip Effect
ZARA brief history of success, and what the bullwhip effect, of course we think ZARA is how to overcome the bullwhip effect supply chain? In fact, ZARA in the face of supply chain bullwhip effect is very successful, the following analysis will focus on how to eliminate the bullwhip effect. To eliminate the bullwhip effect ZARA should benefit from the entire management and control model.
Entire Supply Chain Management
ZARA has a supply chain management is very well equipped: design, procurement, production, distribution and sale terminals. From design to production, to bring new clothes to stores worldwide in just 15 days. ZARA without assistance from external partners to design, warehousing, distribution and logistics, but the full embrace of all-inclusive, to maintain full control over the entire supply chain in China. ZARA's supply chain management where information is quickly passed from buyer to designer and production manager. supply chain management are also available on the flow of raw materials and products in every step of the process real-time tracking. Ultimate goal is to end customers and design, procurement, production and distribution links between upstream run as fast and direct communication.
From the customer to the store manager, store manager of market commissioner from each designer, from designers to production staff, from managers to warehouse distributors, and so forth. At most companies, different departments often have information that might impede communication bureaucracy, but ZARA organizational structure, operational processes, performance measurement, and even the layout of the office will facilitate communication on the principle. It is said that a competitor, ZARA for the supply chain is almost completely controlled. Alone are responsible for all product design and distribution, manufacturing outsourcing ratio is also lower than peers, and almost have all the shops.
ZARA control of the supply chain to enable to control the speed of product and information flows, so can the entire supply chain quickly and run a predictable rhythm. Precise rhythms began to retail outlets. All store managers twice a week under orders, in which Spain and Southern Europe at 3 pm Wednesday and Saturday at 6 pm deadline, another area on Tuesday at 3 pm and 6:00 Friday deadline. The implementation of very tight deadlines.
ZARA described above throughout the supply chain management, an important point, ZARA is supply chain management with accurate control and almost complete overall of strict control, so that the entire supply chain speed and efficiency to the highest, so it will eliminate the demand Forecast Update, limited supply and lack of game elements such as the bullwhip effect is produced, then the supply chain, from basic office to eliminate the bullwhip effect.
Order a Small Number
We know that bulk orders will have the bullwhip effect. ZARA store orders twice a week, and the store manager and demand based on existing sales orders. This is basically each to ensure that meet the needs of the next few days, so as not significant, and twice a week, orders can be sure of repetition.
IT Support For Business
Supply chain management to ensure smooth overall, to ensure effective to achieve a number of small, ZARA approach is to use IT systems that support strong for protecting. The scope of IT to effectively support the needs of customers involved in the collection of information, information on clothing, standardization, product information and inventory management and distribution management, etc., in these operations into IT support, so that processing timeliness and accuracy greatly strengthened.
Jumat, 26 November 2010
Resume Chapter 4
IT INFRASTRUCTURE HARDWARE AND SOFT WARE
4.1 IT Infrastructure: Computer Hardware
Business require a wide variety of computing equipment, software, and communication capabilities simply to operate and solve basic business problems. Obviously, we need computers, and, as it turns out, a wide variety of computers are available, including desktop, laptops, and handhelds.
INFRASTRUCTURE COMPONENTS
a. Computer hardware
Computer hardware consists of technology for computer processing, data storage, input, and output. This component includes large mainframes, servers, desktop and laptop computers, and mobile devices for accessing corporate data and the internet.
b. Computer software
Computer software includes both system software and application software. System software manages the resources and activities of the computer. Application software applies the computer to a specific task for an end user, such as processing an order or generating a mailing list.
c. Data management technology
Data management organizes, manages, and processes business data concerned with inventory, customers, and vendors.
d. Networking and telecommunication technology
Networking and telecommunication technology provides data, voice, and video connectivity to employees, customers, and suppliers.
e. Technology services
Business need people to run and manage the other infrastructure components we have just described and to train employees how to use these technologies for their work. When business need to make major system changes or implement an entirely new IT infrastructure, they typically turn to external consultants to help them with system integration.
TYPES OF COMPUTERS
If we are working alone or with a few other people in a small business, we will use probably be using a desktop or laptop personanal computer(PC). If our business have a number of computers networked together or maintain a Web site, it will need a server. If we are doing advanced design or engineering work requiring powerful graphics or computational capabilities, we might use a workstation, wich fits on a desktop but has more powerful mathematical and graphics-processing capabilities than a PC. A mainframe is a large-capacity, high-performance computer that can process large amounts of data rapidly. A supercomputer is a specially designed and more sophisticated computer that is used for tasks requiring extremely rapid and complex calculations with thousands of equations. Grid computing involves connecting geographically remote computers into a single network to create a “virtual supercomputer” by combining the computational power of all computers on the grid.
Computer Networks and Client/Server Computing
The use of multiple computer linked by a communications network for processing is called distributed processing. Centralized processing, in wich all processing is accomplished by one large central computer, is much less common.
One widely used form of distributed processing is client/server computing. Client/server computing splits processing between “clients” and serves”. The client is the user point of entry for the required function and is normally a desktop or laptop computer. The user generally interacts directly only with the client portion of the application. The server provides the client with services.
For istance, at the first level a Web server will serve a Web page to a client in response to a request for service. Web server software is responsible for locating and managing stored Web pages. If the client requests access to a corporate system( a product list or price information, for instance), the request is passed along to an application server.
STORAGE, INPUT, AND OUTPUT TECHNOLOGY
In addition to hardware for processing data, we will need technologies for data storage, and input and output. Storage and input and output devices are called peripheral devices beucause they are outside the main computer system unit.
Secondary Storage Technology
The principal storage technologies are:
Magnetic Disks: the most widely used storage medium today is the magnetic disk.
Optical Discs: these discs use laser technology to store large quantities of data, including sounds and images, in a highly compact form. They are available for both PCs and large computers.
Magnetic Tape: some companies still use magnetic tape, an older storage technology that is used for secondary storage of large quantities of data that are needed rapidly but not instantly. It store data sequentially and is relatively slow compared to the speed of other secondary storage media.
Storage Networking: large firm are turning to network-based storage technologies to deal with the complexity and cost of mushrooming storage requirement.
Input and Output Devices
Human beings interact with computer system largely through input and output devices. Input devices gather data and convert them into electronic form for use by the computer, whereas output devices display data after they have been processed.
CONTEMPORARY HARDWARE TRENDS
The exploding power of computer hardware and networking technology has dramatically changed how business organize their computing power, putting more of this power on networks. We look at this trends:
1. The emerging mobile digital platform
Mobile digital computing platform have emerged as alternatives to PCs and larger computers. Communication devices such as cell phones,and smartphones such as the iPhone and BlackBerry, have taken on many functions of handheld computers, including transmission of data, surfing the Web, transmitting e-mail and instant messages, displaying digital content, and exchanging data with internal corporate system.
2. Nanotechnology
Nanotechnology uses individual atoms and molecules to create computer chips and other devices that are thousands of times smaller than current technologies permit.
3. Cloud computing
Cloud computing refers to a model of computing in which firms and individuals obtain computing resources and software applications over the internet (also referred to as “the cloud”).
Cloud computing consists of three different types of services:
a. Cloud infrastructure as a services: customers use processing, storage, networking, and other computing resources from cloud service providers to run their information system.
b. Cloud platform as a service: customers use infrastructure and programming tools hosted by the service provider to develop their own applications.
c. Cloud software as a service: customers use software hosted by the vendor.
4. Autonomic computing
Autonomic computing is an industry-wide effort to develop system that can configure themselves, optimize and tune themselves, heal themselves when broken, and protect themselves from outside intruders and self-destruction. Imagine, for instance, a desktop PC that could know it was invaded by a computer virus.
5. Virtualization and multicore processors
Virtualization presents a set of computing resources(such as computing power or data storage) so that they can all be accessed in ways that are restricted by physical configuration or geographic location.
4.2 IT Infrastructure: Computer Soft Ware
OPERATING SYSTEM SOFTWARE
The system software that manages and controls the computer’s activities is called the operating system. Other system software consists of computer language translation programs that convert programming languages into machine language that can be understood by the computer and utility programs that perform common processing tasks, such as copying, sorting, or computing a square root.
APPLICATION SOFTWARE AND DESKTOP PRODUCTIVITY TOOLS
Today, business have access to an array of tools for developing their application software. This include traditional programming languages, fourth-generation languages, application software packages, and desktop productivity tools; software for developing Internet application; and software for enterprise integration. It is important to know wich software tools and programming languages are appropriate for the work your business wants to accomplish.
SOFTWARE FOR THE WEB: JAVA, AJAX, AND HTML
There are a number of software tools that business use to build Web sites and applications that run on the Web. Java and ajax are used for building applications that run on the Web, and HTML is used for creating Web pages.
WEB SERVICES
Web services refer to a set of loosely coupled software components that exchange information with each other using universal Web communication standards and languages.
SOFTWARE TRENDS
Today are many more sources for obtaining software and many more capabilities for users to create their own customized software applications. Expanding use of open source software and cloud –based software tools and services exemplify this trend.
4.3 Managing Hardware And Software Technology
Selection and use of computer hardware and software technology has a profound impact on business performance. The most important issues will be face when in managing hardware and software technology: capacity planning and scalability; determining the total cost of technology assets; determing whether to own and maintain your own hardware, software, and other infrastructure components or lease them from an external technology servie provider; and managing mobile platforms and software localization.
4.4 Hands-On Mis Project
The project in this section give you hands-on experience in developing solutions for managing IT infrastructures and IT outsourcing, using spreadsheet software to evaluate alternative desktop systems, and using Web research to budget for a sales conferece.
IT INFRASTRUCTURE HARDWARE AND SOFT WARE
4.1 IT Infrastructure: Computer Hardware
Business require a wide variety of computing equipment, software, and communication capabilities simply to operate and solve basic business problems. Obviously, we need computers, and, as it turns out, a wide variety of computers are available, including desktop, laptops, and handhelds.
INFRASTRUCTURE COMPONENTS
a. Computer hardware
Computer hardware consists of technology for computer processing, data storage, input, and output. This component includes large mainframes, servers, desktop and laptop computers, and mobile devices for accessing corporate data and the internet.
b. Computer software
Computer software includes both system software and application software. System software manages the resources and activities of the computer. Application software applies the computer to a specific task for an end user, such as processing an order or generating a mailing list.
c. Data management technology
Data management organizes, manages, and processes business data concerned with inventory, customers, and vendors.
d. Networking and telecommunication technology
Networking and telecommunication technology provides data, voice, and video connectivity to employees, customers, and suppliers.
e. Technology services
Business need people to run and manage the other infrastructure components we have just described and to train employees how to use these technologies for their work. When business need to make major system changes or implement an entirely new IT infrastructure, they typically turn to external consultants to help them with system integration.
TYPES OF COMPUTERS
If we are working alone or with a few other people in a small business, we will use probably be using a desktop or laptop personanal computer(PC). If our business have a number of computers networked together or maintain a Web site, it will need a server. If we are doing advanced design or engineering work requiring powerful graphics or computational capabilities, we might use a workstation, wich fits on a desktop but has more powerful mathematical and graphics-processing capabilities than a PC. A mainframe is a large-capacity, high-performance computer that can process large amounts of data rapidly. A supercomputer is a specially designed and more sophisticated computer that is used for tasks requiring extremely rapid and complex calculations with thousands of equations. Grid computing involves connecting geographically remote computers into a single network to create a “virtual supercomputer” by combining the computational power of all computers on the grid.
Computer Networks and Client/Server Computing
The use of multiple computer linked by a communications network for processing is called distributed processing. Centralized processing, in wich all processing is accomplished by one large central computer, is much less common.
One widely used form of distributed processing is client/server computing. Client/server computing splits processing between “clients” and serves”. The client is the user point of entry for the required function and is normally a desktop or laptop computer. The user generally interacts directly only with the client portion of the application. The server provides the client with services.
For istance, at the first level a Web server will serve a Web page to a client in response to a request for service. Web server software is responsible for locating and managing stored Web pages. If the client requests access to a corporate system( a product list or price information, for instance), the request is passed along to an application server.
STORAGE, INPUT, AND OUTPUT TECHNOLOGY
In addition to hardware for processing data, we will need technologies for data storage, and input and output. Storage and input and output devices are called peripheral devices beucause they are outside the main computer system unit.
Secondary Storage Technology
The principal storage technologies are:
Magnetic Disks: the most widely used storage medium today is the magnetic disk.
Optical Discs: these discs use laser technology to store large quantities of data, including sounds and images, in a highly compact form. They are available for both PCs and large computers.
Magnetic Tape: some companies still use magnetic tape, an older storage technology that is used for secondary storage of large quantities of data that are needed rapidly but not instantly. It store data sequentially and is relatively slow compared to the speed of other secondary storage media.
Storage Networking: large firm are turning to network-based storage technologies to deal with the complexity and cost of mushrooming storage requirement.
Input and Output Devices
Human beings interact with computer system largely through input and output devices. Input devices gather data and convert them into electronic form for use by the computer, whereas output devices display data after they have been processed.
CONTEMPORARY HARDWARE TRENDS
The exploding power of computer hardware and networking technology has dramatically changed how business organize their computing power, putting more of this power on networks. We look at this trends:
1. The emerging mobile digital platform
Mobile digital computing platform have emerged as alternatives to PCs and larger computers. Communication devices such as cell phones,and smartphones such as the iPhone and BlackBerry, have taken on many functions of handheld computers, including transmission of data, surfing the Web, transmitting e-mail and instant messages, displaying digital content, and exchanging data with internal corporate system.
2. Nanotechnology
Nanotechnology uses individual atoms and molecules to create computer chips and other devices that are thousands of times smaller than current technologies permit.
3. Cloud computing
Cloud computing refers to a model of computing in which firms and individuals obtain computing resources and software applications over the internet (also referred to as “the cloud”).
Cloud computing consists of three different types of services:
a. Cloud infrastructure as a services: customers use processing, storage, networking, and other computing resources from cloud service providers to run their information system.
b. Cloud platform as a service: customers use infrastructure and programming tools hosted by the service provider to develop their own applications.
c. Cloud software as a service: customers use software hosted by the vendor.
4. Autonomic computing
Autonomic computing is an industry-wide effort to develop system that can configure themselves, optimize and tune themselves, heal themselves when broken, and protect themselves from outside intruders and self-destruction. Imagine, for instance, a desktop PC that could know it was invaded by a computer virus.
5. Virtualization and multicore processors
Virtualization presents a set of computing resources(such as computing power or data storage) so that they can all be accessed in ways that are restricted by physical configuration or geographic location.
4.2 IT Infrastructure: Computer Soft Ware
OPERATING SYSTEM SOFTWARE
The system software that manages and controls the computer’s activities is called the operating system. Other system software consists of computer language translation programs that convert programming languages into machine language that can be understood by the computer and utility programs that perform common processing tasks, such as copying, sorting, or computing a square root.
APPLICATION SOFTWARE AND DESKTOP PRODUCTIVITY TOOLS
Today, business have access to an array of tools for developing their application software. This include traditional programming languages, fourth-generation languages, application software packages, and desktop productivity tools; software for developing Internet application; and software for enterprise integration. It is important to know wich software tools and programming languages are appropriate for the work your business wants to accomplish.
SOFTWARE FOR THE WEB: JAVA, AJAX, AND HTML
There are a number of software tools that business use to build Web sites and applications that run on the Web. Java and ajax are used for building applications that run on the Web, and HTML is used for creating Web pages.
WEB SERVICES
Web services refer to a set of loosely coupled software components that exchange information with each other using universal Web communication standards and languages.
SOFTWARE TRENDS
Today are many more sources for obtaining software and many more capabilities for users to create their own customized software applications. Expanding use of open source software and cloud –based software tools and services exemplify this trend.
4.3 Managing Hardware And Software Technology
Selection and use of computer hardware and software technology has a profound impact on business performance. The most important issues will be face when in managing hardware and software technology: capacity planning and scalability; determining the total cost of technology assets; determing whether to own and maintain your own hardware, software, and other infrastructure components or lease them from an external technology servie provider; and managing mobile platforms and software localization.
4.4 Hands-On Mis Project
The project in this section give you hands-on experience in developing solutions for managing IT infrastructures and IT outsourcing, using spreadsheet software to evaluate alternative desktop systems, and using Web research to budget for a sales conferece.
Sabtu, 06 November 2010
Strengthen Customer And Supplier Intimacy
Customers
A profitable company depend in a large measure on its ability to attract and retain customers (while denying them to competitors), and charge high prices. The Power of customers grows if they can easily switch to a competitor’s product and service, or if they can force a business and its competitors to compete on price alone in a transparent market place where there is little product differentiation, and all price are known instantly(such as on the internet).
Supplier
The market power of suppliers can have a significant impact on firm profits, especially when the firm can’t raise price as fast as can supplier. The more different suppliers a firm has, the greater control it can exercise over supplier in terms of price, quality, and delivery schedules.
Customer intimacy is the largest source of the growth, sustainable competitive advantage, and profit. Everyone in organization should practice it. Customer-intimate companies bring an entirely fresh perspective. They discover unsuspected problems, detect unrealized potential, and create a dynamic synergy with customers. They often merge their operations with those of their customers. In the integration of their operations, suppliers become more than merely useful: they become indispensable.
Business have traditionally relied on technology and product innovation for competitive advantage. However, as products became commodities due to global competition and relentless technological advances, the battleground for differentiation and customer value creation shifted to customer intimacy and service. This service-focused competitive strategy has worked well for numerous companies across various industry sectors.
Benefit to everyone in the organization
Customer intimacy
gives senior managers a new vision of the future, a strategy that makes sense, and the tactics to make it work.
helps sales and account managers build deeper and more productive relationships with selected customers, arming them with a real-world model of success in their battle to unite factory and field.
helps information-technology professionals leverage emerging innovation: keeping information flowing back and forth to customers, and coaching them on how to get the best results with that information.
helps human-resource professionals to deal with a most sensitive challenge of the commitment to deliver results – to integrate the supplier's personnel into a customer's operation.
Case in poiny 25 Lessons from Jack Welch
Jack Welch’s goal was to make GE “the wold’s most competitive enterprise”. Welch believed in trying to know every employee and every customers, just like a village grocer. Welch even nicknamed GE “the grocery store”: what is important at the grocery store is just as important in engines or medical systems. If the customer isn’t statisfied, if the stuff is getting stale, if the shelf isn’t right, or if the offerings aren’t right, it’s the same thing. He knew that it would take nothing less than a "revolution" to transform that dream into a reality. "The model of business in corporate America in 1980 had not changed in decades. Workers worked, managers managed, and everyone new their place. Forms and approvals and bureaucracy ruled the day."2 Welch's self-proclaimed revolution meant waging war on GE's old ways of doing things and reinventing the company from top to bottom.
Today, GE with its unique learning culture and boundaryless organization is one the most admired company in the world.
Customers
A profitable company depend in a large measure on its ability to attract and retain customers (while denying them to competitors), and charge high prices. The Power of customers grows if they can easily switch to a competitor’s product and service, or if they can force a business and its competitors to compete on price alone in a transparent market place where there is little product differentiation, and all price are known instantly(such as on the internet).
Supplier
The market power of suppliers can have a significant impact on firm profits, especially when the firm can’t raise price as fast as can supplier. The more different suppliers a firm has, the greater control it can exercise over supplier in terms of price, quality, and delivery schedules.
Customer intimacy is the largest source of the growth, sustainable competitive advantage, and profit. Everyone in organization should practice it. Customer-intimate companies bring an entirely fresh perspective. They discover unsuspected problems, detect unrealized potential, and create a dynamic synergy with customers. They often merge their operations with those of their customers. In the integration of their operations, suppliers become more than merely useful: they become indispensable.
Business have traditionally relied on technology and product innovation for competitive advantage. However, as products became commodities due to global competition and relentless technological advances, the battleground for differentiation and customer value creation shifted to customer intimacy and service. This service-focused competitive strategy has worked well for numerous companies across various industry sectors.
Benefit to everyone in the organization
Customer intimacy
gives senior managers a new vision of the future, a strategy that makes sense, and the tactics to make it work.
helps sales and account managers build deeper and more productive relationships with selected customers, arming them with a real-world model of success in their battle to unite factory and field.
helps information-technology professionals leverage emerging innovation: keeping information flowing back and forth to customers, and coaching them on how to get the best results with that information.
helps human-resource professionals to deal with a most sensitive challenge of the commitment to deliver results – to integrate the supplier's personnel into a customer's operation.
Case in poiny 25 Lessons from Jack Welch
Jack Welch’s goal was to make GE “the wold’s most competitive enterprise”. Welch believed in trying to know every employee and every customers, just like a village grocer. Welch even nicknamed GE “the grocery store”: what is important at the grocery store is just as important in engines or medical systems. If the customer isn’t statisfied, if the stuff is getting stale, if the shelf isn’t right, or if the offerings aren’t right, it’s the same thing. He knew that it would take nothing less than a "revolution" to transform that dream into a reality. "The model of business in corporate America in 1980 had not changed in decades. Workers worked, managers managed, and everyone new their place. Forms and approvals and bureaucracy ruled the day."2 Welch's self-proclaimed revolution meant waging war on GE's old ways of doing things and reinventing the company from top to bottom.
Today, GE with its unique learning culture and boundaryless organization is one the most admired company in the world.
Jumat, 29 Oktober 2010
The Process of AIR ASIA Online Ticket Booking
Now the traveling is very easy there are some ticket promotion and sometimes free from Air Asia. The excess from Air Asia are we can booking the ticket ten months before travelling and in the certain period they give the promotion in very cheap cost. Online booking make us easy to booking the travelling ticket and we don’t need to spend more for booking the ticket. Booking via internet just spend the time about ten minutes.
The steps of AIR ASIA ticket booking:
1. Open the website at www.airasia.com then we select the state where we live now for example Indonesia then we select the Indonesian language to make us easy in booking if we don’t understand English well .
2. Choose the book part/flight, then fill up the data:
Are we want to choose go-back or just for one more times flight?
Choose the state/place departure for example from Jakarta
Then we choose the destination state for example Malaysia
Fill up the departure date and date when we come back if we use the package of go-back
How many passengers and if we have the baby we fill up the column for baby
Click for search knob.
3. After we click for search knob it stepped forward flight which we are looking for. Then we choose the class, the price of ticket and the time for flight which we want click the passengers and continuation.
4. We must to fill up the passengers data informations.
Like name, birth date, identification or passport number and issuing country then we click continue. We must fill up the data of passengers appropriate with the original identity because when we check in to get the boarding pass we must to show identification card and booking code. Air Asia will be pushed if the name in e-ticket different with identification which we show when check in in the airport.
Express boarding is service given by Air Asia as Lower Cost Carrier which passengers use this facilities will be give the first opportunity to enter plane cabin and we can take a seat where we want. To get this service the passengers must paid Rp 45.000,-(domestic flight).
Many type payment of Air Asia booking online, we can use credit card, debit direct or vocher e-gift. For debit direct payment just for Mandiri customers and they have joint to Mandiri internet banking service. After payment success we will get email confirmation, booking number and statement that payment has confirmation. We must to save booking number for check in at the airport.
Now the traveling is very easy there are some ticket promotion and sometimes free from Air Asia. The excess from Air Asia are we can booking the ticket ten months before travelling and in the certain period they give the promotion in very cheap cost. Online booking make us easy to booking the travelling ticket and we don’t need to spend more for booking the ticket. Booking via internet just spend the time about ten minutes.
The steps of AIR ASIA ticket booking:
1. Open the website at www.airasia.com then we select the state where we live now for example Indonesia then we select the Indonesian language to make us easy in booking if we don’t understand English well .
2. Choose the book part/flight, then fill up the data:
Are we want to choose go-back or just for one more times flight?
Choose the state/place departure for example from Jakarta
Then we choose the destination state for example Malaysia
Fill up the departure date and date when we come back if we use the package of go-back
How many passengers and if we have the baby we fill up the column for baby
Click for search knob.
3. After we click for search knob it stepped forward flight which we are looking for. Then we choose the class, the price of ticket and the time for flight which we want click the passengers and continuation.
4. We must to fill up the passengers data informations.
Like name, birth date, identification or passport number and issuing country then we click continue. We must fill up the data of passengers appropriate with the original identity because when we check in to get the boarding pass we must to show identification card and booking code. Air Asia will be pushed if the name in e-ticket different with identification which we show when check in in the airport.
Express boarding is service given by Air Asia as Lower Cost Carrier which passengers use this facilities will be give the first opportunity to enter plane cabin and we can take a seat where we want. To get this service the passengers must paid Rp 45.000,-(domestic flight).
Many type payment of Air Asia booking online, we can use credit card, debit direct or vocher e-gift. For debit direct payment just for Mandiri customers and they have joint to Mandiri internet banking service. After payment success we will get email confirmation, booking number and statement that payment has confirmation. We must to save booking number for check in at the airport.
SISTIM INFORMASI MANAJEMEN
E-government Applied in Indonesia
Information and Communisiacation Technology user became large in this world. ICT user doesn’t unlimited in the commerce but also the other sector as Ministry of education , Ministry of defense and safety, social and etc. ICT user in interaction has more benefit than user tradisional method. The ICT benefit is in speeding, easing access and lowest cost. For example the sales were Indonesia and the customers were in Korea. In tradisional method the customers must to came to Indonesia if they want to buy the product which bid of the sales, but by ICT development the costomers and sales just sent an email and they making the trading promise.
Transformation of traditional government to become electronic government (eGovernment) has become one of most current public policy issues that is much talked about. In Indonesia eGoverment has just started by initiative which planned the last few years. This paper try to analyze the definition and aim of e Government and give an example of best practice that have been done by European countries which are more advance in implementing their eGovernment. Challenges and measures that should be taken by government in the Globalization era will be conclusion in this article.
Based on definition from World Bank, eGovernment is usage of information technology by government (such as: Wide Area Network, Internet and mobile computing) which make it possible for government to transform linkages with society, business world and other related parties. (www.worldbank.org). In practice, eGovernment is the usage of Internet to execute the government administration and provide better public service as well as public service oriented approach.
Briefly speaking the objectives to be obtained by implementing eGovernemnt is to create online customer and not in-line. EGovernment means to provide service without any intervenes from the employee of public institutions and long queue system only to get a simple service. Besides, eGovernment also aims to support good governance. The technology usage makes society easy to access information can reduce corruption by increasing transparency and accountability of public institutions. Egovernment can widen public participation in which society is likely to be actively in making decision/policy by government. EGovernment is also expected to improve the productivity and efficiency of bureaucracy in addition to increase the economic growth. In fact, the concept of eGovernment is to create a benevolence, comfortable, transparent, and cheap interaction between government and citizens (G2C-government to citizens), government and business enterprises (G2B-government to business enterprises) and relationship between governments (G2G-inter-agency relationship).
The benefit of E-government:
• The service is better for citizen. The information available in 24 hours in a day and 7 day in a week, without we must wait to the office opened. We can access the information every where.
• Raising relation between government, businessman, and citizen.
• Government execution more efisien.
Egovenment with provide service through Internet can be divided into some levels; namely providing information, one way interaction, two ways interaction and transaction which means fully electronic service. One way interaction could be facility to download needed forms. The process of on-line collecting form is an example of two ways interaction. While fully electronic service signifies decision making and delivery (payment) process. Derived from available facts the most part of realization of eGovernment in Indonesia is merely at the level of web-publicized by the government or is solely at the level of giving information. Data of March 2002 indicate 369 government offices have opened their web-sites. However, 24 percent of the websites could not maintain the sustainability of operation time due to insufficient budget. At the present, there are only 85 websites that function with full options (Jakarta Post, 15 January 2003). In spite of this, it needs to be highlighted that eGovernment is not solely as web publicized by government. Providing service up to the level of full-electronic delivery service needs to be afforded.
Public institutions’ websites in Indonesia except could be accessed directly, could also be accessed through the entry point of Indonesia public institution www.indonesia.go.id which represents Indonesia national portal. From this website, a part from searching out information, the visitors could also access some public and media institution websites promptly. Some models of eGovernment implementation that dominate all over the world at this moment are the service of citizens’ registration such as birth registration, marriage registration and address changing, tax calculation ( income tax, company tax, and custom duties), business registration, vehicle permits, and so on.
As a comparative study, we can observe the implementation of eGovernment in the European Union countries. The European Union is one of community that has applied eGovernment successfully. Only Canada, Singapore, and United States of America which have surpassed the European Union in the area of eGovernment. European Union itself has possessed a modern official website in which each citizen can access the latest information and policy as well as legal foundation of the government policy. At certain times, citizens even can interact in a straight line with the decision makers via chatting facilities (www.europa.eu.int). By having a very big capacity portal, citizen can apply for job and on-he-job-apprentice at the institution. There still many other facilities which are provided by its websites. In order to motivate public service in executing eGovernment, eEurope awards (www.e-europeawards.org) are operated in the framework of facilitating sharing experience and mutual learning among the members of European Union. Besides, eGovernment is performed by providing direct access facilities to government website of member countries and applicant countries as well as other European countries. The sample of best practice which is available in Dutch are among others; custom duties administration which can be done online so that bribe cases can be controlled and reduced. In British, the citizens can apply and renew their passports online. Whilst in French, the reimburse cost already paid for health by insurance companies have be done online. The regional government of Bonn in Germany at present is providing online service that is registration for kindergarten. Through its online portal citizens can obtain information about all kindergartens in the city and the parents can apply directly to be contacted via telephone.
Financial Area
Some entrepreneur , special in the city they don’t use cash in payment transaction but the usually use modern banking service in their transaction. Modern banking service only just in the city because economic growth centered just in the city, and evoke the money rotation also centered in the city. To be success operational institute financial like banking it certain need the information sytem rely on easy access by customers and the end depends on technology online information. For example the customer can pulled money every where still they were in ATM service of that banking, or the customers can check the balance, transferring the money to the other bill just in a minute, all transaction can be done.
Technology development and telematica infrastructure in Indonesia will be help development in industry financial sector like: expantion exertion. Banking institution and financial influence by development product in information technology. This sector need to product development in information technology to give their service for the customers.
Information and Communisiacation Technology user became large in this world. ICT user doesn’t unlimited in the commerce but also the other sector as Ministry of education , Ministry of defense and safety, social and etc. ICT user in interaction has more benefit than user tradisional method. The ICT benefit is in speeding, easing access and lowest cost. For example the sales were Indonesia and the customers were in Korea. In tradisional method the customers must to came to Indonesia if they want to buy the product which bid of the sales, but by ICT development the costomers and sales just sent an email and they making the trading promise.
Transformation of traditional government to become electronic government (eGovernment) has become one of most current public policy issues that is much talked about. In Indonesia eGoverment has just started by initiative which planned the last few years. This paper try to analyze the definition and aim of e Government and give an example of best practice that have been done by European countries which are more advance in implementing their eGovernment. Challenges and measures that should be taken by government in the Globalization era will be conclusion in this article.
Based on definition from World Bank, eGovernment is usage of information technology by government (such as: Wide Area Network, Internet and mobile computing) which make it possible for government to transform linkages with society, business world and other related parties. (www.worldbank.org). In practice, eGovernment is the usage of Internet to execute the government administration and provide better public service as well as public service oriented approach.
Briefly speaking the objectives to be obtained by implementing eGovernemnt is to create online customer and not in-line. EGovernment means to provide service without any intervenes from the employee of public institutions and long queue system only to get a simple service. Besides, eGovernment also aims to support good governance. The technology usage makes society easy to access information can reduce corruption by increasing transparency and accountability of public institutions. Egovernment can widen public participation in which society is likely to be actively in making decision/policy by government. EGovernment is also expected to improve the productivity and efficiency of bureaucracy in addition to increase the economic growth. In fact, the concept of eGovernment is to create a benevolence, comfortable, transparent, and cheap interaction between government and citizens (G2C-government to citizens), government and business enterprises (G2B-government to business enterprises) and relationship between governments (G2G-inter-agency relationship).
The benefit of E-government:
• The service is better for citizen. The information available in 24 hours in a day and 7 day in a week, without we must wait to the office opened. We can access the information every where.
• Raising relation between government, businessman, and citizen.
• Government execution more efisien.
Egovenment with provide service through Internet can be divided into some levels; namely providing information, one way interaction, two ways interaction and transaction which means fully electronic service. One way interaction could be facility to download needed forms. The process of on-line collecting form is an example of two ways interaction. While fully electronic service signifies decision making and delivery (payment) process. Derived from available facts the most part of realization of eGovernment in Indonesia is merely at the level of web-publicized by the government or is solely at the level of giving information. Data of March 2002 indicate 369 government offices have opened their web-sites. However, 24 percent of the websites could not maintain the sustainability of operation time due to insufficient budget. At the present, there are only 85 websites that function with full options (Jakarta Post, 15 January 2003). In spite of this, it needs to be highlighted that eGovernment is not solely as web publicized by government. Providing service up to the level of full-electronic delivery service needs to be afforded.
Public institutions’ websites in Indonesia except could be accessed directly, could also be accessed through the entry point of Indonesia public institution www.indonesia.go.id which represents Indonesia national portal. From this website, a part from searching out information, the visitors could also access some public and media institution websites promptly. Some models of eGovernment implementation that dominate all over the world at this moment are the service of citizens’ registration such as birth registration, marriage registration and address changing, tax calculation ( income tax, company tax, and custom duties), business registration, vehicle permits, and so on.
As a comparative study, we can observe the implementation of eGovernment in the European Union countries. The European Union is one of community that has applied eGovernment successfully. Only Canada, Singapore, and United States of America which have surpassed the European Union in the area of eGovernment. European Union itself has possessed a modern official website in which each citizen can access the latest information and policy as well as legal foundation of the government policy. At certain times, citizens even can interact in a straight line with the decision makers via chatting facilities (www.europa.eu.int). By having a very big capacity portal, citizen can apply for job and on-he-job-apprentice at the institution. There still many other facilities which are provided by its websites. In order to motivate public service in executing eGovernment, eEurope awards (www.e-europeawards.org) are operated in the framework of facilitating sharing experience and mutual learning among the members of European Union. Besides, eGovernment is performed by providing direct access facilities to government website of member countries and applicant countries as well as other European countries. The sample of best practice which is available in Dutch are among others; custom duties administration which can be done online so that bribe cases can be controlled and reduced. In British, the citizens can apply and renew their passports online. Whilst in French, the reimburse cost already paid for health by insurance companies have be done online. The regional government of Bonn in Germany at present is providing online service that is registration for kindergarten. Through its online portal citizens can obtain information about all kindergartens in the city and the parents can apply directly to be contacted via telephone.
Financial Area
Some entrepreneur , special in the city they don’t use cash in payment transaction but the usually use modern banking service in their transaction. Modern banking service only just in the city because economic growth centered just in the city, and evoke the money rotation also centered in the city. To be success operational institute financial like banking it certain need the information sytem rely on easy access by customers and the end depends on technology online information. For example the customer can pulled money every where still they were in ATM service of that banking, or the customers can check the balance, transferring the money to the other bill just in a minute, all transaction can be done.
Technology development and telematica infrastructure in Indonesia will be help development in industry financial sector like: expantion exertion. Banking institution and financial influence by development product in information technology. This sector need to product development in information technology to give their service for the customers.
Minggu, 10 Januari 2010
CASE 11.3
Giving And Spending The United Way
The united way, wich envolved from the local community chests of the 1920s, is a national organization that funnels funding to charities through a payroll deduction system. Ninety percent of all charitable payroll deductionsin 1991 were for the united way. This system, however has been criticized as coercive. Bonuses, president of united way commented,”if participation is 100 percent, it means someone has been coerced.”
When Aramony’s expenses and salry became public, Aramony resigned after fifteen chapters of the United Way threatened to withhold their annual dues to the national office. In August 1992, the United Way board of directors hired Elaine Chao, the peace Corps Director, to replace William Aramony at a salary of $195.000, with no perks. She reduce staff from 275 to 185 and borrowed $1,5 million to compensate for a decline in donations. Ms. Chao has since left the United Way and has served as secretary of labor for the Bush administration since 2001.
In September 1994, William Aramony and two other United Way officers, including the chief financial officer, were indected by a federal grand jury for conspiracy, mail fraud, and tax fraud. On april 3, 1995, Aramony was found guilty of twenty five count of fraud, conspiracy, and money laundering. Two other United Way executives were also convicted. Mr.Aramony was sentenced to eighty-four months in prison(and fined $300.000) and was released in 2004. In this chapter told nonprofit and management, the conduct of Mr. William aramony is unethical he take the benefit for him self but that could be damage for the company.
Often with nonprofits, the problem is not fraud by the organization it’s fraud by misconduct or missteps with the organization. Whether because of inexperience, the need for flexibility in management, or just as with companies the drive for success and result, there have been some ethical issues that have proven costly for the nonprofit organization.
Giving And Spending The United Way
The united way, wich envolved from the local community chests of the 1920s, is a national organization that funnels funding to charities through a payroll deduction system. Ninety percent of all charitable payroll deductionsin 1991 were for the united way. This system, however has been criticized as coercive. Bonuses, president of united way commented,”if participation is 100 percent, it means someone has been coerced.”
When Aramony’s expenses and salry became public, Aramony resigned after fifteen chapters of the United Way threatened to withhold their annual dues to the national office. In August 1992, the United Way board of directors hired Elaine Chao, the peace Corps Director, to replace William Aramony at a salary of $195.000, with no perks. She reduce staff from 275 to 185 and borrowed $1,5 million to compensate for a decline in donations. Ms. Chao has since left the United Way and has served as secretary of labor for the Bush administration since 2001.
In September 1994, William Aramony and two other United Way officers, including the chief financial officer, were indected by a federal grand jury for conspiracy, mail fraud, and tax fraud. On april 3, 1995, Aramony was found guilty of twenty five count of fraud, conspiracy, and money laundering. Two other United Way executives were also convicted. Mr.Aramony was sentenced to eighty-four months in prison(and fined $300.000) and was released in 2004. In this chapter told nonprofit and management, the conduct of Mr. William aramony is unethical he take the benefit for him self but that could be damage for the company.
Often with nonprofits, the problem is not fraud by the organization it’s fraud by misconduct or missteps with the organization. Whether because of inexperience, the need for flexibility in management, or just as with companies the drive for success and result, there have been some ethical issues that have proven costly for the nonprofit organization.
CASE 10. 14
Officials Who Sell Public Records: Is There a Problem?
Clark County Recorder Frances Deane has been indicted by State of Nevada on nineteen felony counts, including misconduct of public officer, fraudulent appropriation of property, theft and unlawful commissions, personal profit, and compensation of public officers. Ms. Deane is accused of copying public land records to sell to businesspeople who planned to create a title plant that would be far less expensive for others to use than the million- dollar access fees charged to those who wish to join and use the resources of title companies title service.
In exchange for providing the copied public land records, Ms.Deane is alleged to have received cash payments. Gekko testified on witness stand that Ms.Deane explained her decision to copy the record and take the cash as follows:” I’m not going to get re-elected, so it’s time for me to get a piece like every one else.” Ms. Deane, through her lawyer, stipulated to action by Nevada Ethics Commission a resolution that permitted her to keep her position. A state removed Ms.Deane from her position as recorder until the trial on the felony counts was completed.
Unlimited sources of funds often is used to justify behavior. In Government contracts the supply of funds seems endless and the competition is thiff. The benefit and pressures often cause poor resolutions of ethical dilemmas.
Officials Who Sell Public Records: Is There a Problem?
Clark County Recorder Frances Deane has been indicted by State of Nevada on nineteen felony counts, including misconduct of public officer, fraudulent appropriation of property, theft and unlawful commissions, personal profit, and compensation of public officers. Ms. Deane is accused of copying public land records to sell to businesspeople who planned to create a title plant that would be far less expensive for others to use than the million- dollar access fees charged to those who wish to join and use the resources of title companies title service.
In exchange for providing the copied public land records, Ms.Deane is alleged to have received cash payments. Gekko testified on witness stand that Ms.Deane explained her decision to copy the record and take the cash as follows:” I’m not going to get re-elected, so it’s time for me to get a piece like every one else.” Ms. Deane, through her lawyer, stipulated to action by Nevada Ethics Commission a resolution that permitted her to keep her position. A state removed Ms.Deane from her position as recorder until the trial on the felony counts was completed.
Unlimited sources of funds often is used to justify behavior. In Government contracts the supply of funds seems endless and the competition is thiff. The benefit and pressures often cause poor resolutions of ethical dilemmas.
Sabtu, 09 Januari 2010
Case 9.5
Tylenol: the product and its packaging safety
Twenty-three-year-old Diane Elsroth died after taking a Tylenol capsule laced with cyanide. Within five days of her death, more people died from taking tainted Tylenol purchased from stores in the Chicago area. After the Chicago poisonings which were never solved, McNeil and Johnson & Johnson executive were told at a meeting that processes for sealing the capsules had been greatly improved, but no one could give the assurance that they were tamperproof. The capsule form of the pain reliever represented 30 percent of Tylenol. Tylenol in capsule form worked faster than Tylenol in tablets.
Jim Burke, CEO of Johson & Johson told the others that without a tamperproof package for the capsules, they would risk the survival not only Tylenol but also Johnson & Johson. The executive decided to abandon the capsule . Frank Young, a food and Drug Administration commissioner, stated at the time, “This is a matter of Johnson & Johnson’s own business judgement, and represents a responsible action under though circumstanes.
Johnson & Johnson quickly developed “caplets”-tablets in the shape of a capsule then offered consumers a coupon for a bottle of the new caplets if they turned in their capsules. Within five day of the announcement of the capsule recall and caplets offer 200,000 consumers had responded . Johnson & Johnson had eliminated a key product in its line, one that customers clearly preferred in the interest of safety.
Within one year of the Tylenol poisonings, Johnson & Johnson regained its 40 percent market share for tylenol. However it is interesting to note that McNeilwas able to have its new product and packaging on the shelves within weeks of the fatal incidents. There had been some preparation for the change prior to the facilities, but the tragedy was the motivation for the change to safer packaging and product forms. Tylenol is a stunding source of revenue for McNeil and Johnson & Johnson, with revenue totals growing at double-digit rates as Tylenol expands market presence into 5,000 convenience stores with new and smaller packaging of its product and its new formulassuch as Tylenol PM. In 1997, Tylenol added a new label to its infant Tylenol “Taking more than the recommended dose… could cause serious health risks” because of liver damage in children. From this chapter we know that only the manufacturer knows the result of its safety tests on a product, only the manufacturer can correct defects or recall dangerous products. Product liability represents one of the issues at the heart of ethical and socially responsible behavior for business.
Tylenol: the product and its packaging safety
Twenty-three-year-old Diane Elsroth died after taking a Tylenol capsule laced with cyanide. Within five days of her death, more people died from taking tainted Tylenol purchased from stores in the Chicago area. After the Chicago poisonings which were never solved, McNeil and Johnson & Johnson executive were told at a meeting that processes for sealing the capsules had been greatly improved, but no one could give the assurance that they were tamperproof. The capsule form of the pain reliever represented 30 percent of Tylenol. Tylenol in capsule form worked faster than Tylenol in tablets.
Jim Burke, CEO of Johson & Johson told the others that without a tamperproof package for the capsules, they would risk the survival not only Tylenol but also Johnson & Johson. The executive decided to abandon the capsule . Frank Young, a food and Drug Administration commissioner, stated at the time, “This is a matter of Johnson & Johnson’s own business judgement, and represents a responsible action under though circumstanes.
Johnson & Johnson quickly developed “caplets”-tablets in the shape of a capsule then offered consumers a coupon for a bottle of the new caplets if they turned in their capsules. Within five day of the announcement of the capsule recall and caplets offer 200,000 consumers had responded . Johnson & Johnson had eliminated a key product in its line, one that customers clearly preferred in the interest of safety.
Within one year of the Tylenol poisonings, Johnson & Johnson regained its 40 percent market share for tylenol. However it is interesting to note that McNeilwas able to have its new product and packaging on the shelves within weeks of the fatal incidents. There had been some preparation for the change prior to the facilities, but the tragedy was the motivation for the change to safer packaging and product forms. Tylenol is a stunding source of revenue for McNeil and Johnson & Johnson, with revenue totals growing at double-digit rates as Tylenol expands market presence into 5,000 convenience stores with new and smaller packaging of its product and its new formulassuch as Tylenol PM. In 1997, Tylenol added a new label to its infant Tylenol “Taking more than the recommended dose… could cause serious health risks” because of liver damage in children. From this chapter we know that only the manufacturer knows the result of its safety tests on a product, only the manufacturer can correct defects or recall dangerous products. Product liability represents one of the issues at the heart of ethical and socially responsible behavior for business.
CASE 8.5
Kraft, Barney Rubble, and Shrek
Kraft Foods has decided to ban certain food ads from children’s, websites for kraft foods. Kraft has created a group of outside independent advisers who analyzed the company website and found games for children involving Barney Rubble and Shrek that led the kids to chases for kraft products such as ChipsAnoy, Lunchables, and Kool-Aid. Kraft agreed to pull the ads from the web because Professor Ellen Wartella, dean the college of Communication at University of Texas at Austin, called the web ads “indefensible”. The ads were placed in children’s TV and radio programs. Kraft does market “healthier” product to children between the ages of six and twelve. Kraft also uses cartoon characters on its products such as Sponge Bob on its crackers and Dora the Explorer on Teddy Grahams cookies.
About eighteen months after kraft heeded the advice of his advisory board and made change, eleven united state companies, including kraft, announced that the they would put stricter controls on their advertisement product for children. The companies participating in the voluntary initiative that are:
• Kraft
• McDonald’s
• Pepsi,Co
• Coca-Cola
• General Mills
• Campbell’s
• Cadbury Adam’s
• Kellogg’s
• Hershey’s
• Mars, Inc
• Unilever
The companies take the control different form, for example pepsico and coke will eliminate ads at elementary schools. Pepsico is also eliminating ads at middle schools. The chairman of the federal trade commission praised the group for their voluntary action. However, members of conggress indicated that the media outlets, including the cartoon Network and Nickelodeon, also needed to step forward with volutary steps.
Kraft, Barney Rubble, and Shrek
Kraft Foods has decided to ban certain food ads from children’s, websites for kraft foods. Kraft has created a group of outside independent advisers who analyzed the company website and found games for children involving Barney Rubble and Shrek that led the kids to chases for kraft products such as ChipsAnoy, Lunchables, and Kool-Aid. Kraft agreed to pull the ads from the web because Professor Ellen Wartella, dean the college of Communication at University of Texas at Austin, called the web ads “indefensible”. The ads were placed in children’s TV and radio programs. Kraft does market “healthier” product to children between the ages of six and twelve. Kraft also uses cartoon characters on its products such as Sponge Bob on its crackers and Dora the Explorer on Teddy Grahams cookies.
About eighteen months after kraft heeded the advice of his advisory board and made change, eleven united state companies, including kraft, announced that the they would put stricter controls on their advertisement product for children. The companies participating in the voluntary initiative that are:
• Kraft
• McDonald’s
• Pepsi,Co
• Coca-Cola
• General Mills
• Campbell’s
• Cadbury Adam’s
• Kellogg’s
• Hershey’s
• Mars, Inc
• Unilever
The companies take the control different form, for example pepsico and coke will eliminate ads at elementary schools. Pepsico is also eliminating ads at middle schools. The chairman of the federal trade commission praised the group for their voluntary action. However, members of conggress indicated that the media outlets, including the cartoon Network and Nickelodeon, also needed to step forward with volutary steps.
CASE 7.4
Product Dumping
This chapter tell us about conflicts between the corporation’s ethics and business practices in foreign countries. Once the Consumer Product Safety Commission forbids the sale of a particular product in the United State, a manufacturer can no longer sell the product to U.S. However the product can be sold in other countries that haven’t forbids its sell. For example, Great Britian outlawed the sale of recipe sleeping pill Halcion, but sales of the drug continue in the U.S. The British medical community attain conclusions regarding the pill’s safety that different from the conclusions attain by medical community and the food and drug administration.
Although some manufacturers had already turned to four-wheel models, other manufacturer still had inventories of three-wheel cycles. In 1998 in the united state the consumer product safety commission outlawed the sale three-wheel all terrain cycles. However, after the three-wheel product was banned outlawed vehicle could be sold outside the united state. For many companies, chaos follow the product recall because inventory of the recalled product may be high. The firm, often decide whether the product dump in other countries or to take detriment earnings, stock prices and employment stability. I think the product never mind if the firm want to sell in other countries, which that counties permit to sell the product.
Product Dumping
This chapter tell us about conflicts between the corporation’s ethics and business practices in foreign countries. Once the Consumer Product Safety Commission forbids the sale of a particular product in the United State, a manufacturer can no longer sell the product to U.S. However the product can be sold in other countries that haven’t forbids its sell. For example, Great Britian outlawed the sale of recipe sleeping pill Halcion, but sales of the drug continue in the U.S. The British medical community attain conclusions regarding the pill’s safety that different from the conclusions attain by medical community and the food and drug administration.
Although some manufacturers had already turned to four-wheel models, other manufacturer still had inventories of three-wheel cycles. In 1998 in the united state the consumer product safety commission outlawed the sale three-wheel all terrain cycles. However, after the three-wheel product was banned outlawed vehicle could be sold outside the united state. For many companies, chaos follow the product recall because inventory of the recalled product may be high. The firm, often decide whether the product dump in other countries or to take detriment earnings, stock prices and employment stability. I think the product never mind if the firm want to sell in other countries, which that counties permit to sell the product.
CASE 6.9
Whole Foods But Not Full Disclosure
This chapter tell us about the CEO of whole foods John Mackey, using the name of whole foods Rahodeb (that’s was her wife’s name Deborah, with each syllable arranged in backwards order). Message in the chat room were dedicated to stock trading posted over 1000, the message were praising to whole foods (even of message for Mackey himself “I like Mackey’s haircut. I think he looks cute”). The company whole foods was trying to get even as anonymous postings continued because the postings were also negative about wild oats. On february 24, 2005 Mackey posted the following about Wild oats CEO perry Odak. He was specifically active during that time, he has posted seventeen messages on september5, 2005, and another seventeen on november 11, 2005 with plenty of postings on the days in between.
When John Mackey was discovered his identity, he apologized and he stop to postings. The postings made by Mackey have been collected by federal trade commission then show to allow the merger with wild oats would reduce competition in the market place. The idetity of Rahodeb became to the public after the FTC filing. The FTC loss its challenge to the judical approval of the whole foods and wild oats merger, unless the U.S supreme court decides to take up the case. Thi chapter I think is unethical, John Mackey to get her personal ambition by wrong way.
Whole Foods But Not Full Disclosure
This chapter tell us about the CEO of whole foods John Mackey, using the name of whole foods Rahodeb (that’s was her wife’s name Deborah, with each syllable arranged in backwards order). Message in the chat room were dedicated to stock trading posted over 1000, the message were praising to whole foods (even of message for Mackey himself “I like Mackey’s haircut. I think he looks cute”). The company whole foods was trying to get even as anonymous postings continued because the postings were also negative about wild oats. On february 24, 2005 Mackey posted the following about Wild oats CEO perry Odak. He was specifically active during that time, he has posted seventeen messages on september5, 2005, and another seventeen on november 11, 2005 with plenty of postings on the days in between.
When John Mackey was discovered his identity, he apologized and he stop to postings. The postings made by Mackey have been collected by federal trade commission then show to allow the merger with wild oats would reduce competition in the market place. The idetity of Rahodeb became to the public after the FTC filing. The FTC loss its challenge to the judical approval of the whole foods and wild oats merger, unless the U.S supreme court decides to take up the case. Thi chapter I think is unethical, John Mackey to get her personal ambition by wrong way.
Kamis, 07 Januari 2010
Activities in my Life about Ethics are Right and Wrong
Wrong activities:
1. Misunderstanding, I think it’s very difficult for me to don’t it. For example when I’m was in the lonely place and there are somebody observe me, at that time I was suspected that somebody wants to rob me or the other thing will be happen for me. This condition may be will happen or no, sometimes this is just my feeling that somebody observed at me, in right condition that isn’t happen and I have suspected the other people. This is ethics, sometimes I feel I done something right but without unconscious I had suspect somebody about something that he didn’t do it .
2. I often don’t prayer in the exact time, when time to prayer became best for us to pray at that time besides we got more merit it can be makes us to be a discipline. Its happen sometimes when I was sleep or while I’m doing something.
3. I dislike people command me to do something which that’s thing don’t interest me to do that.
4. Gossip, without unconscious we have talked about the other people although it right happen. It sometimes happen when I meet with my friend.
5. When I feel lazy to make the homework or I don’t know how to do my homework I ask for my friend to lend me her homework.
Right activities:
1. God willing still now I don’t forget and always do my parents suggestion a lot of it are: don’t forget to pray and ask for the God for his instruction in this life, I must to study hard to get my dream come true and I must to keep my behavior that don’t make my parent was shy.
2. When I have holiday I always visit my family.
3. If my friend ask me some help likes to lend her a money or a book and etc, I will give if I have it.
4. Don’t disturb the other people activities for example don’t speak loundly when some of our friend was studying in chamber or sleeping.
5. When my friend discussion something about her problem to me, I listen it accurately and I don’t speak while my friend talking something for me, If I want to speaks something I wait untill she finished speaks about her problem.
Wrong activities:
1. Misunderstanding, I think it’s very difficult for me to don’t it. For example when I’m was in the lonely place and there are somebody observe me, at that time I was suspected that somebody wants to rob me or the other thing will be happen for me. This condition may be will happen or no, sometimes this is just my feeling that somebody observed at me, in right condition that isn’t happen and I have suspected the other people. This is ethics, sometimes I feel I done something right but without unconscious I had suspect somebody about something that he didn’t do it .
2. I often don’t prayer in the exact time, when time to prayer became best for us to pray at that time besides we got more merit it can be makes us to be a discipline. Its happen sometimes when I was sleep or while I’m doing something.
3. I dislike people command me to do something which that’s thing don’t interest me to do that.
4. Gossip, without unconscious we have talked about the other people although it right happen. It sometimes happen when I meet with my friend.
5. When I feel lazy to make the homework or I don’t know how to do my homework I ask for my friend to lend me her homework.
Right activities:
1. God willing still now I don’t forget and always do my parents suggestion a lot of it are: don’t forget to pray and ask for the God for his instruction in this life, I must to study hard to get my dream come true and I must to keep my behavior that don’t make my parent was shy.
2. When I have holiday I always visit my family.
3. If my friend ask me some help likes to lend her a money or a book and etc, I will give if I have it.
4. Don’t disturb the other people activities for example don’t speak loundly when some of our friend was studying in chamber or sleeping.
5. When my friend discussion something about her problem to me, I listen it accurately and I don’t speak while my friend talking something for me, If I want to speaks something I wait untill she finished speaks about her problem.
4B
TAKING ADVANTAGE
The ethical category of taking unfair advantage is one in which one party has a superior bargaining, knowledge, information, or power position and uses it to cause the other side to lose something in the process. Sometimes parties take advantage of others just by their philanthropic position. Their goodness in cause is used to justify unfairness in treatment.
CASE 4.9
The Ethics of Peer-to-Peer File Sharing
Peer-to-peer file sharing came about through the efforts of Shawn Fanning and his Napster website and programs. Napster website program user could free of charge, download recoding via the Internet through process known as ripping, which is the downloading of digital MP3 files. When technology afforded a quality and fast recording, the customers responded with widespread use of the system.
When the music writers, produers, and artists became aware of the Napster system the companies filed copyright Infrigement suits against Napster. Mike Stoller, a song writer also filed suit against Napster and wrote in an oponion piece for New York Times:
I fear for the 17 year old songwriter looking forward to a career in the music business today.
Napster and companies like it aren’t only thretening my retirement, but the future musicit self.
By taking incentive out of songwriting, Napster may be pushing it self closer to a time when there won’t be any songs for its users to swap.
The controversy over Napster created fierce media and congressional battles among and between artists, fans, and music companies. Recording artists and record companies called peer-to-peer file sharing nothing more than copyright infringement. “It’s a technology no one anticipated and the law doesn’t apply” was observation of one legal expert.
Other artists were busily establishing Internet strategies. Lance bass, of the teen band “N Sync, developed strategies for digital music. By participating in teen chat room, Bass learns wich songs his fans take a liking to and has been selling his song over the Internet. He makes about $1 per CD sold because the record companies have monopolies on distribution and spend large amounts on marketing.
Napster filed suit against by using trademark without authorization for infringement, seeking an injunction as well as damages. When the record companies filed filed suit against Napster, the district court granted a preliminary injunction to the plaintiffs enjoining Napster from “engaging in, or facilitating others in copying, downloading, uploading, transmitting, or distributing plaintiffs copyrighted musical compositions and sound recordings, protected by either federal or state law, without express permission of the rights owner”. Napster was eventually shut down by federal court. Several interim steps were taken as the companies tried to get their songs deregistered.
The Recording Industry Association of America (RIIA) began an aggressive enforcement policy of filling suit against those who are engaged in significant amounts of downloading. These individual have resulted in settlements.
Under the deal, the students have unlimited rights to listen to music on up to there personal computers as long as they are still students Penn State. If they want to download the songs, it will cost $0,99 per song. The university will pay for the Napster service out of the $160 technology fee the students pay each year.
TAKING ADVANTAGE
The ethical category of taking unfair advantage is one in which one party has a superior bargaining, knowledge, information, or power position and uses it to cause the other side to lose something in the process. Sometimes parties take advantage of others just by their philanthropic position. Their goodness in cause is used to justify unfairness in treatment.
CASE 4.9
The Ethics of Peer-to-Peer File Sharing
Peer-to-peer file sharing came about through the efforts of Shawn Fanning and his Napster website and programs. Napster website program user could free of charge, download recoding via the Internet through process known as ripping, which is the downloading of digital MP3 files. When technology afforded a quality and fast recording, the customers responded with widespread use of the system.
When the music writers, produers, and artists became aware of the Napster system the companies filed copyright Infrigement suits against Napster. Mike Stoller, a song writer also filed suit against Napster and wrote in an oponion piece for New York Times:
I fear for the 17 year old songwriter looking forward to a career in the music business today.
Napster and companies like it aren’t only thretening my retirement, but the future musicit self.
By taking incentive out of songwriting, Napster may be pushing it self closer to a time when there won’t be any songs for its users to swap.
The controversy over Napster created fierce media and congressional battles among and between artists, fans, and music companies. Recording artists and record companies called peer-to-peer file sharing nothing more than copyright infringement. “It’s a technology no one anticipated and the law doesn’t apply” was observation of one legal expert.
Other artists were busily establishing Internet strategies. Lance bass, of the teen band “N Sync, developed strategies for digital music. By participating in teen chat room, Bass learns wich songs his fans take a liking to and has been selling his song over the Internet. He makes about $1 per CD sold because the record companies have monopolies on distribution and spend large amounts on marketing.
Napster filed suit against by using trademark without authorization for infringement, seeking an injunction as well as damages. When the record companies filed filed suit against Napster, the district court granted a preliminary injunction to the plaintiffs enjoining Napster from “engaging in, or facilitating others in copying, downloading, uploading, transmitting, or distributing plaintiffs copyrighted musical compositions and sound recordings, protected by either federal or state law, without express permission of the rights owner”. Napster was eventually shut down by federal court. Several interim steps were taken as the companies tried to get their songs deregistered.
The Recording Industry Association of America (RIIA) began an aggressive enforcement policy of filling suit against those who are engaged in significant amounts of downloading. These individual have resulted in settlements.
Under the deal, the students have unlimited rights to listen to music on up to there personal computers as long as they are still students Penn State. If they want to download the songs, it will cost $0,99 per song. The university will pay for the Napster service out of the $160 technology fee the students pay each year.
Jumat, 01 Januari 2010
NASA And the Space Shuttle Booster Rockets
CASE 5.19
NASA And the Space Shuttle Booster Rockets
Morton Thiokol, Icn., is an aerospace company, manufacture the solid-propellant rocket motor for Peacekeeper missile and the missiles on Trident nuclear submarines. Thiokol also worked carefully with National Aeronaustics and Space Administration (NASA) in developing the challenger, one of NASA’s reusable space shuttles.
Morton Thiokol operated as manufacturer for booster used to launch the challenger. NASA had a special launch scheduled of the challenger for January 1986, the launch was highly publicized because NASA had conducted a nationwide search for a teacher to send on the flight.
On the scheduled launch day, January 28, 1986, the weather was cloudy and cold, the launch had already been delayed several times, but NASA official still contacted Thiokol engineers in Utah to discuss weather the shuttle should be launched in such cold weather. In Thiokol’s contract with NASA the temperature was between 400 F and 900 F. The temperature at Cape Canaveral at that January morning was below 300 F, the launch of challenger proceeded nevertheless.
Two of the Thiokol engineers involved in the launch, Allan Mcdonald and Roger Boisjoly, then testified that had opposed the launch. In October 1985, Boisjoly presented the O-ring issue at a conference of the society of Automotive Engineers and requested suggestion for resolution. On January 27, 1986 the day before the launch, Boisjoly attempted to halt the launch. Mr. McDonald also offered his insights to a NASA group and Thiokol engineer. However, Four Thiokol managers including Lund, voted unammously to recommend the launch. The managers then developed the following revised recommendation. Engineers were excluded from the final decision and the development of this findings.
After the decision was made, Boisjoly returned to his office and wrote in his journal “ He sincerelly hope this launch doesn’t result in a catastrophe. He personally don’t agree with some of statements made in Joe Kilminister’s (Kilminister was one of the four Thiokol managers who voted to recommend the launch)”.
The challenger launch at the low temperature caused the seals at the booster rocket joints to fail and exploded, killing Christa McAuliffe and the six astronauts on board. The challenger incident resulted more from human error than mechanical error. The decision to launch should have been referred to headquarters. Both Boisjoly and McDonald testified before the presidential panel regarding their opposition to the launch and decision of their managers to override their recommendation. Both Boisjoly and McDonald also testified that following their expressed opposition to the launch and their willingness to come forwar, they had been isolated from NASA and subsequently demoted. Currently, Mr.Boisjoly operates a consulting firm in Mesa, Arizona. He speaks frequently on business ethics to professional organizations and companies.
NASA And the Space Shuttle Booster Rockets
Morton Thiokol, Icn., is an aerospace company, manufacture the solid-propellant rocket motor for Peacekeeper missile and the missiles on Trident nuclear submarines. Thiokol also worked carefully with National Aeronaustics and Space Administration (NASA) in developing the challenger, one of NASA’s reusable space shuttles.
Morton Thiokol operated as manufacturer for booster used to launch the challenger. NASA had a special launch scheduled of the challenger for January 1986, the launch was highly publicized because NASA had conducted a nationwide search for a teacher to send on the flight.
On the scheduled launch day, January 28, 1986, the weather was cloudy and cold, the launch had already been delayed several times, but NASA official still contacted Thiokol engineers in Utah to discuss weather the shuttle should be launched in such cold weather. In Thiokol’s contract with NASA the temperature was between 400 F and 900 F. The temperature at Cape Canaveral at that January morning was below 300 F, the launch of challenger proceeded nevertheless.
Two of the Thiokol engineers involved in the launch, Allan Mcdonald and Roger Boisjoly, then testified that had opposed the launch. In October 1985, Boisjoly presented the O-ring issue at a conference of the society of Automotive Engineers and requested suggestion for resolution. On January 27, 1986 the day before the launch, Boisjoly attempted to halt the launch. Mr. McDonald also offered his insights to a NASA group and Thiokol engineer. However, Four Thiokol managers including Lund, voted unammously to recommend the launch. The managers then developed the following revised recommendation. Engineers were excluded from the final decision and the development of this findings.
After the decision was made, Boisjoly returned to his office and wrote in his journal “ He sincerelly hope this launch doesn’t result in a catastrophe. He personally don’t agree with some of statements made in Joe Kilminister’s (Kilminister was one of the four Thiokol managers who voted to recommend the launch)”.
The challenger launch at the low temperature caused the seals at the booster rocket joints to fail and exploded, killing Christa McAuliffe and the six astronauts on board. The challenger incident resulted more from human error than mechanical error. The decision to launch should have been referred to headquarters. Both Boisjoly and McDonald testified before the presidential panel regarding their opposition to the launch and decision of their managers to override their recommendation. Both Boisjoly and McDonald also testified that following their expressed opposition to the launch and their willingness to come forwar, they had been isolated from NASA and subsequently demoted. Currently, Mr.Boisjoly operates a consulting firm in Mesa, Arizona. He speaks frequently on business ethics to professional organizations and companies.
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