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Friday, September 28, 2012

Ethics in Action



The ethical dilemma for Mr Jayaswal was that the incentive of making a huge fortune considered him to act unethically by either selling the coal mines or sitting on them as assets and not developing them to help with the countries shortages in electricity and blackouts. The open system allows government officials to pick and choose who gets the coal mines. Even though there is meant to be a government screening, the power of an open system has caused such corruption to take place in the idea that its about who you know and not what you know. It may be seen that this aspect of the political system is competitive and those who have tighter bonds to the politicians and prove themselves far worthy should be in favor of acquiring the coal mines, however how the "favored applicants" have responded to owning these mines tells us this is not the case. 
On the other hand, Mr Dadra's incentive is not so clear but one might guess that his close tie to Mr Jayaswai would allow us to subjectively believe that by selecting Mr Jayaswai would mean Mr Dadra would also profit either by bribery or taking a portion of profit. This would consider him to act unethically by using his lawmaking position to allow Mr Jayaswai to acquire the coal mines even though he was not the best applicant when screened by the committee, which was the policy of the open system, that the Prime Minister had implemented.

The advantages for Mr Jayaswal for committing this act has meant that he is very wealthy. He has been able to pay for his daughters elaborate weddings in Thailand. Another advantage is that he has built strong relationships with government officials like politicians and lawmakers like Mr Dadra. He also has coal mines that other businesses like the steel industry want that makes him powerful in the business sector. 
The disadvantages of committing the act id that he can be seen as ethically wrong and acting against his moral code of conduct. He may be rationalizing his unethical behavior by saying that he is helping the country by selling these coal mines or producing some coal to help with the shortages and blackouts but rightfully know he is not doing the best he can for India. He may not be attending to his social responsibility to best serve society in helping India produce electricity all over the country. 

The viewpoint of moral reasoning I believe motivated mr Jayaswal to engage in this conduct was the individualism view that his decision promotes his own long term self interests, that seemingly is to be wealthy. Obviously the justice view was not a viewpoint that was considered accurately as he knew his close relationships served him well in acquiring the mines. The decision was not fair.

As long as the system is open and the people in power like politicians and wealthy businessmen have the opportunity to pick and choose based on false selection processes, corruption will not decline. People in power try to rationalize unethical behavior or just look out for only their own interests. When I make these statements I do not believe all people with greater power are immoral and unethical but have far greater opportunity to be so when it comes to the bigger picture. An article in the US News reveals how even here in the US, after creating the Dodd-Frank Wall Street Reform and Consumer Protection Act, that was to stop corruption on Wall Street after the global economy crisis in 2008, that corruption still continues. Still shady dealings and unethical decisions are being made despite the Reform Act, which goes to say that not even the law can stop big business men, corporations or politician like people, stop acting unethically. If in the US, where the laws against corruption are far more stronger, it goes to show that there still is corruption so therefore what hope does India have with example to this case. Another report by the BBC News India, talks about how India needs to talk about corruption as recently their have been many social movements, for example, fasts and protests towards authorities and the recent expose of corruptive decisions that have affected India's economy. As much as this report may seemingly favor the fight on corruption, it seems that it's a political game to win votes and that India's culture for over centuries has been corruptive in nature and that its gonna take a lot more than fasts to change the corruptive nation. 

One strategy I believe India could use that was suggested and I would support is the idea of India having an Independent Anti-Corruption Agency that was proposed in the Indian Express. The strategy talks about strengthening the definition of what corruption is and focuses on being punitive, preventive and promotional. The watchdog committee would need to be very independent and have no ties to political issues but focus purely on watching for unethical behavior amongst the government officials and large business owners. 

But at the end of the day such a strategy is hard to implement and personally I think it is down to changing  cultural dispositions and as we have seen over time that is exceptionally hard to do.

Wednesday, September 12, 2012

Zara International: Fashion at the Speed of Light

Zara International is a very fashionable and affordable clothing chain globally and has a strong brand name in my opinion. Zara shows many elements of classical management. Most notably is Zara's ability  to be efficient. Fredrick Taylor's scientific management is clearly evident in the aspect of Zaras's quick turn around of runways to stores allowing only 2 weeks for the company to get the garments into stores. Zara also is able to distribute out of stock items within 24 to 48 hours depending on its global location. To me, these efficient qualities refer to Taylor's management and Zara had created the best way to perform a task by creating a science that works well for the company. Not only have they created a science but must of employed the correct people and trained them well. I refer to the 200 professionals of the creative team that keep up with the latest fashions. Also, Zara must have some aspects of an ideal bureaucracy with a clear division of labor. The jobs must be so well defined that the employees are that good and quick for Zara stores to receive the latest fashions within such a short amount of time.
Behavioral management approaches are evident in Zara International. With an excellent flow of production and high revenues and sales, its not just the product that creates such great achievements. In the article references to the managers tracking sales data and given opportunities to replicate eye catching layouts that are emailed from stylists at headquarters shows that headquarters does give a lot of responsibility and trust to its store managers. This seems like theory Y management that allows its staff to be creative. This is also shown with its creative team of 200 employees. With such a large division and with such quick designs created, freedom of creativity must be important for a company that moves so fast. The company employs more than 80,000 workers and has over 1,500 stores worldwide. The managements behavioral approach must be on point for such productivity to occur in all of its operations.
Zara's system concepts are strong. It uses its inputs of employees creativity, fabrics, revenues and sales as well as technology to communicate so quickly to transform into finished clothes that sell fast. And by making small batches at first that can be quickly replenished is a great quality. Zara has many subsystems from its headquarters to creative team to its stores employees as well as its accounting and logistics centers that come together so well for it to be so successful, efficient and effective. Zara's success does not just come from one department but its communication throughout all subsystems using its resources of employees and technology.
When it comes to contingency thinking, Zara depends on all its subsystems to reflect of the environmental changes as in customer demands. Its best way to manage is done by quickly turning runway into affordable clothing. When fashion changes, Zara is quick to adapt and has a great team of creative people to recognize these changes and act quick. Its small batches and sales data tracking is a great way to manage and minimalize its inventory.
Today in my opinion Zara is still pushing forward increasing in size and revenue. In an article from renowned British newspaper The Guardian, Zara still is increasing growth at a phenomenal rate with profits up by 30% from its first quarter of 2011 to 2012. The article expresses how Zara's huge success has made owner Amancio Ortega the third richest man in the world. The Guardian also point out how competitor Mango's sales have fallen by 38.5%.
In my opinion, it is clearly evident of Zara's success here in New York City. Its flagship store opened on 5th Ave by 52nd street and this store alone represents Zara as a major competitor in the fashion market. An article by NBC New York gives a great report on the stores operations and how much man power is going to be invested to make the store function. With 32,000 square feet and 450 employees required, this store by far is not cheap to run and shows the capabilities, growth and success of the company. Zara is a leading fashion retailer globally and from its owner to the flagship store in New York City we can see just how successful the company really is.