We need crime prevention, not the death penalty Essay

We Need Crime Prevention, Not the Death Penalty For most crimes committed in the United States a fine, sentence of time in jail or execution is the punishment. However, the death penalty is the most questionable punishment. Is it morally right? Is it effective in deterring crime, primarily murders? Weather or not you agree if it is moral or not, one issue remains. The death penalty is not an effective way to deter crime. The death penalty has existed as long as humans have existed. The quote quot;an eye for an eyequot; is found in the Bible. In the middle ages fines, public humiliation and imprisonment were appropriate punishments for all crimes, and death penalty for all murders. Today, Federal law states†¦show more content†¦There have been many comparisons of crime rates of death penalty states to non- death penalty states. These clearly show that the death penalty has no effect on the deteration of crime. The homicide rates in Michigan, Ohio and Illinois rise and fall along with Wisconsin. Michigan, Ohio and Illinois all have the death penalty. Wisconsin does not. In 1994, the average murder rate in a death penalty state of a population of 100,00 was 8.0, for a non-death penalty state, 4.4. In Canada the homicide rate per 100,000 people was 3.09 in 1975, this was when they had the death penalty. In 1976 Canada got rid of the death penalty. In 1986 the crime rate decreased to 2.19 per 100,000 people, the lowest in 15 years. Isnt it odd that the crime rates were high with the death penalty and low without? Clearly this shows that the presence of the death penalty has no effect on the increase or decrease of crime rates. Even with the death penalty, crime rates continue to rise and fall in the United States. The number of people on death row in 1967 were in 1972: 200 and in 1997 3,100. Crimes will be committed weather or not death penalty is a method of punishment. Many people believe that the death penalty isnt an effective way to deter crime. quot;The proposed drug death penalty is not only barbaric but also foolish: a temper tantrum masquerading as an act ofShow MoreRelatedThe Death Penalty Should Be Abolished1440 Words   |  6 PagesThe death penalty is a very controversial topic in the United States. It is implemented for the purpose of providing safety to the community and bringing justice to victims and their families. The death penalty is legal in thirty-one states (â€Å"31 States†), and there are over forty different types of federal capital crimes that are eligible for the death penalty. These include crimes such as treason and kidnapping that results in murder (â€Å"41 Federal†). However, many argue whether the death penalty isRead MoreThe Death Penalty Is Justified1367 Words   |  6 PagesThe death penalty is often thought of to be a deterrence to murder. The idea is that criminals are supposed to think what their consequences could be before committing the crime which in this case would be the death penalty. However, what are the chances that a criminal is actually going to stop and think about whethe r or not the death penalty could be a consequence. If criminals want to engage in violence, they are going to. Consequences are not going to alter that state of mind. According to RichardRead MoreThe Death Penalty Is More Expensive Than Housing1610 Words   |  7 Pages The death penalty is a hot button issue in contemporary American politics. There are many sides and stances that need to be addressed in order to truly understand the issue. The three main arguments for or against the death penalty tend to be focused around three main areas: fiscal issues, moral issues, and crime prevention issues. Many Americans are concerned about the cost of capital punishment, specifically; the cost of the death penalty per inmate, per year. Is it actually cheaper for theRead MoreThe Victim Of The Criminal Justice System1622 Words   |  7 PagesFirst before I start, it is important to know who is defined as a victim of crime. A victim of crime is a person who is harmed due to a criminal offence, like suffering physical or emotional harm, property damage, or economic loss as a result of a crime (Branch, L. S., 2017). Also can be a spouse, conjugal partner, relative of, or a person responsible for a victim who has passed away or is not capable to act or ‘preform’ for themselves for example a victim of child. As well as the person who harmedRead MoreCapital Pusnishment: Crime, Spionange and Treason Essay681 Words   |  3 Pages1977 and 2009.[1] Most death penalty cases involve the execution of murders.[2] However, capital punishment can be applied to other crimes such as es pionage and treason.[3] When it comes to the death penalty there are many opinions as to why this form of punishment is a good thing. Those opinions include things such as: †¢ The death penalty is the ultimate warning toward would-be criminals.[4] If a potential criminal knows that the punishment for their actions is going to be death, then fewer criminalsRead MoreThe Issue Of Capital Punishment Essay1149 Words   |  5 Pagesissue of capital punishment or the death penalty. Having said that, crime is imminent. We could have an unexpected encounter with a criminal committing crime on a daily. Criminals have become a part of our daily lives. Does this mean we should let them prevail in our society? No, absolutely not. Eliminating crime and criminals is our duty, and we must not ignore it. Getting the rightly accused to a just punishment is very important. Some criminals commit a crime because they have no other option toRead MoreEssay about The Death Penalty: What if Theyre Innocent?928 Words   |  4 PagesThe death penalty has been around for several around for several years but consists of flaws. The death penalty is costly, it does not deter crime, it has not ended wrongful executions, it goes against almost every religion, abuses human rights, has been persuaded by the types of jury, and can be affected by terrible lawyers. The first death penalty in the United States occurred in the early 1600’s. The colonies used public hangings as a deterrent for children and adults. A public sermon wouldRead MoreThe Death Penalty is An Effective Weapon Against Crime Essay1309 Words   |  6 Pagespunishment.  Ã‚   Many people believe that it no longer serves out its intended purpose of deterring crime.   Others believe that the death penalty is an inhumane act of violence and that it should be banished from the justice system all together.   The thought of playing God also is another aspect of the situation.   Despite these allegations however, the facts still remain.   The death penalty deters crime, stops repeat offenders, and gives Americans a real sense that justice has been served, and shouldRead MoreShould The Death Penalty Be Legal?1638 Words   |  7 PagesShould the death penalty be legal or be abolished? Laws and regulations vary from nation to nation. Attitudes towards the capitalism, as well, vary from person to person. The death penalty, it seems, has become more debatable topic than ever. Although some people think capital punishment, just like death penalty, is a inhuman act which against human s rights for life and it is too cruel to give the criminals another chance to live a new life. I suppose capital punishment is still an effectiveRead MoreThe Problem Of Crime And Gun Violence1718 Words   |  7 Pages Although it seems like the problem of crime and gun violence is never approached or discussed, there are leaders within America tirelessly working to find a solution to help decrease crime. Alex Yablon puts it like this in his article on The Trace, saying â€Å"the lack of progress on the federal level should not be confused with a lack of proposed solutions to America s gun violence epidemic – there are plenty of those, on both sides of the table.† Yablon means there are some bills that would limit

What Did The Maoist Insurgency Influence The Declaration...

Extended Essay Draft â€Å"To what extent did the Maoist Insurgency influence the declaration of Martial law in the Philippines on 1972?† â€Å"What events influenced the decision to declare Martial Law in the Philippines in 1972?† Introduction: As a Filipina living as an expatriate, I have travelled and lived around the world and meeting new people and other Filipinos with different backgrounds. I was interested to what specific event affected their belief. The Martial law in 1972 is a major event in the history of the Philippines that caused disorder and violence against the Marcos government and this event modernized the country in terms of government and the Filipinos. There are many books written on the effects of the Martial law to the†¦show more content†¦This law is the exercise imposed by the government and control by military authorities over the civilian population. Martial law is the declared either when there is near-violent civil unrest or major natural disasters, however most countries use a different legal construct like â€Å"state of emergency†. The imposition of martial law accompanies curfews, the suspension of civil laws, civil rights, habeas corpus, and the application of military justic e to civilians. Civilians defying martial law may be subjected to military tribunals. Martial law in the Philippines was publicly declared nationwide on September 23, 1972. Around 7:15pm, he broadcasted in television his proclamation of Martial law and placing the control under the Armed Forces of the Philippines. In this situation, the president declared martial law because there was near-violent civil unrest in the Philippine society. It was lifted on January 17, 1981. President Ferdinand Marcos was holding the presidency of the Philippines for 20 years from 1966-1986. He ruled the country as a dictator and is known for running a corrupt and undemocratic regime. The declaration of martial in 1972 by President Marcos was his claim that it was the last defence against the rising disorder caused by increasing student demonstrations, the alleged threats of communist insurgency by the Communist Party of the Philippines and the Muslim Separatists Movement of the Moro National Liberation Front. Maoist Insurgency Maoism

Qantas Free Essays

string(132) " strategy depends on competitive offering to customers \(Slater Olson, 2001\) with unique product for varied customer groups\." INTRODUCTION: In the competitive market industries of category of domestic, international or global have very competitive rivalry. Cost leadership and differentiation strategies are commonly used strategic management dimensions in the literature (Dess and Davis, 1984; Nayyar, 1993). But to achieve market superiority over competitors and profitability it has to make clear choice over the strategy used in order to avoid ‘the inherent contradiction of different strategies’ (Porter, 1996, p. We will write a custom essay sample on Qantas or any similar topic only for you Order Now 67) In today’s market for a company to survive, it has to create two corporate strategies 1. Lowest price without jeopardizing the quality. 2. Better quality, simple way of operation and better look that means ability to be creative and innovative. According to Porter (1985) all generic competitive strategies have different way of cresting sustainable competitive advantage. And a company must always choose a strategy or else it will be stuck in the middle without coherent strategy (Acquaah Yasai – Ardekani, 2006). Many companies for example Wal – Mart and AirAsia have been implementing a single strategy very successfully. Examples of companies which has used differentiation strategy as single strategy successfully: * Differentiation by Brand: Harley Davidson and Mercedes Benz * Differentiation by Design: Titan watches – with gold studded gems, diamonds, precious metals. * Differentiation by Positioning: Domino Pizza ‘ 30 minutes delivery’ * Differentiation by Technology: Apple Computers * Differentiation by Innovation: 3M. Furthermore there are successful companies which apply hybrid – strategy which implies both cost leadership differentiation strategy at the same time. Eg: German’s Automotive, Tesco supermarket, IKEA. Competitive Strategy: It is the way by which firms choose to accomplish and hold their competitive advantage. Regarding competitive strategy Porter stated that â€Å"taking offence or defensive actions to create a defendable position in an industry, to cope with †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦competitive forces and thereby yield a superior return for the firm†. Companies have established different approaches to competitive strategy, as per the crisis companies should apply respective strategy. The basic of generic strategy: Porter stated that company’s strength is divided into two attributes: cost advantage and differentiation. By applying these attributes in a broad and narrow focus, three generic strategies result: cost leadership, differentiation and focus. They do not represent any industry nor they are specific to any company. PORTER’S GENERIC STRATEGIES: Diagram 1: (Porter, 1980) Normally means â€Å"pursue a quality approach†. Enables a price premium to be charged for the quality difference. Normally means â€Å"pursue a quality approach†. Enables a price premium to be charged for the quality difference. Aim to have lowest cost-base industry. Will facilitate favourable / cheaper pricing and thus grow market share in elastic industries particularly. Aim to have lowest cost-base industry. Will facilitate favourable / cheaper pricing and thus grow market share in elastic industries particularly. Competitive Advantage Competitive Advantage Differentiation Differentiation Lower Cost Lower Cost Broad Target Broad Target 1. Cost Leadership| Competitive Score Competitive Score 2. Differentiation| Narrow Target Narrow Target 3 A. Cost Focus| 3 B. Differentiation Focus| Concentrate on one or a small number of market segments. Can be differentiation or cost leadership. Concentrate on one or a small number of market segments. Can be differentiation or cost leadership. Porter initially advised Firms to avoid attempting both Strategies – Stuck in the Middle – as out and out differentiators and cost leaders will tend to be more competitive. The success of Japanese (and other) firms with JIT, Kaizen and TQM techniques appears to provide evidence contrary to this view. Requirements for generic competitive strategies: Generic Strategy| Commodity Required Skills and Resources| Common Organizational Requirements| Overall cost leadership| Sustained capital investment access to capital| Tight cost control| | Process engineering skills| Frequent, detailed control reports| | Intense supervision of labour| Structured organization and responsibilities| | Products designed for ease | Incentives based on meeting strict quantitative| | Low-cost distribution system| targets in manufacture| Differentiation| Strong marketing abilities| Strong coordination among functions in RD, product development, and marketing| | Product ngineering| | | Creative flare | | | Strong capability in basic research| Subjective measurement andincentives instead of quantitative measures| | Corporate reputation for quality or technological leadership| Amenities to attract highly skilled labour, scientists, or creative people| | Long tradition in the industryor unique combination of skills drawn from other businesses| | | Strong cooper ation fromchannels| | Focus| Combination of the above policies directed at the particular strategic target| Combination of the above policies directed at the regular strategic target| Four strategic types and their approaches to strategy (Miles and Snow)? : 1. Defender: * protect market share * hold current position 2. Analyser: * seek market opportunities but protect existing areas * hold market share but with some innovation 3. Prospector: * find new opportunities * exploit and take risks 4. Reactor: * respond only to other * often late and inadequate COST AND DIFFERENTIATION STRATEGY: Cost Leadership Strategy – The cost leadership strategy represents cost control and efficiency in all areas of operation (Porter, 1980). A company that decides to follow cost leadership actually achieves it by performing important value chain activities with lower cost (Porter, 1985). Cost – Leadership strategy strives to supply a standard, no frills, high volume product with a competitive price to customers (Bingxin Li Juan Li, 2008) which is preferred in developing countries India, China, Indonesia Malaysia. This make product more competitive than others with brand image and good service (Hutchinson et al. 2007; Frambach et al. 2003; Porter, 1980). Cost Leadership aim requires strong focus on supply side as oppose to demand side of market – with high level competitor orientation (Day Wendley, 1988). Cost Leadership strategy used by companies must benchmark them in a profitable position in the market place. As per Porter (1980), efficient cost leadership strategy minimizes cost in areas like RD, Services, Sales and Advertising. In Japan, Toyota Company has successfully implemented cost leadership strategy with increased efficiency (Schonberger, 1994) which is a different factor make up in this strategy when compared to the western countries. Allen Helms, 2001) Differentiation Strategy – The generic of differentiation strategy can be based upon design and brand image, distribution so forth (Frambach. Et al. 2003). It involves by creating a place in the market that is realized as being different in the industry and has the capability to endure for a long run (Porter, 1980). The effectiveness of strategy depends on competitive offering to customers (Slater Olson, 2001) with unique product for varied customer groups. You read "Qantas" in category "Essay examples" This is with the aim to create minimum price of product in order to develop satisfaction and loyalty. A firm with differentiation strategy creates superior characteristics in terms of image, reputation, reliability and equality (Dean Evans, 1994; Sashi and Stern, 1995). This creates qualitative difference in products service, engaged in advertising programs, marketing techniques with premium prices (Miller, 1986). According to Acquaah and Yasai – Ardekani (2006). Firms with competitive strategies has advantage over their rivals as they realized how unique their products and services are. The differentiation strategy has been successfully implemented in France, Sweden, Canada with companies having advantage of Financial and technology resources, human capital and modern management (Aulakh et al, 2000) Focus Porter defined focus as one of the generis strategies but later on mentioned it as moderator of cost leadership and differentiation strategy, Companies which apply this strategy normally focus on the market where there are less competition. (Pearson, 1999). Firms uses this strategy to stress on a specific positioning in the market and so it offers quality and specialized products for that position. Therefore sometimes focus strategy is referred as niche strategy (Lynch, 2003). This strategy allows the firm the possibility to charge a premium price for its specialized products. Ferrari and Rolls – Royce are examples of company using such strategy. The only problem with the strategy is that niche characteristic is not sufficient to justify company’s attention. Stuck in the middle – When a company fails to make a choice between the strategies then it is implied that the company is stuck in the middle. Thus affecting its profitability and resulting poor financial performance. (Peter, 1980) THE COMBINATION (HYBRID) STRATEGY: The Porter Generic competitive Strategies (1980, 1985) can’t be given excessive prominence. Competitive forces ( Allen and Helms, 2006; Miller, 1992; Spanos, et al. , 2004) has been termed â€Å" hybrid, mixed, integrated or combination strategies. (Kim. Et al. , 2004; Spanos, et al. , 2004). They combine both low cost and differentiation elements (Gopalakrishna and Subramanian, 2001; Proff, 2000). A combination of cost leadership and differentiation strategies should be distinguish from ‘stuck in the middle’ where firm fails to successfully pursue both. (Acquaah Yasai – Ardekani, 2006). A combination or hybrid strategy has been proved to be viable and profitable (Kim et al. , 2004; Miller Dess, 1993; Wright et al. , 1991). Firms pursuing combined strategy achieved higher performance than the other firms which apply single strategy. Combined strategy also helps the firm to minimize their vulnerability due to reliance on cost – based advantages only (Yasai – Ardekani Nystrom, 1996). This hybrid strategy success depends on ability to deliver enhanced benefit to customers with low price and sufficient margins to reinvestment. Tesco Supermarket is following same the same strategy (Strategy Explorer, 2010) THE APPLICATION OF SINGLE STARTEGY: Cost Leadership Strategy: The cost leadership strategy is the basis for long – run compare to price competition. Price competition is easily duplicated (Porter, 1980; Ellis Kelly, 1992). In retail business cost reduction must be exploited which minimizes cost throughout value chain activities. Important issues in retail business are related with cost of goods sold. (COGS). Large retail business achieve more easily cost leadership due to more power supplier to secure low procurement prices for purchased goods (Ellis Kelley, 1992; Anderer, 1997). Datuk Tony Fernandez as CEO of AirAsia Berhad said â€Å"Before business can grow it needs to have its cost under control, efficient and profitable and also it must create value†. AirAsia leader of LCC in Malaysia, Thailand and Indonesia will face competition from existing and new players and it need to make consideration more stressed for the point of becoming the low cost carrier in the airline industries. Differentiation Strategy: It emphasis several dimensions such as image, gain customer loyalty, innovation and level of service (Kim et al. , 2004) by generating differences n product through intensive marketing image management (Miller 1988) and creating products which are innovative, dependable, durable, and serviceable (Beal Yasai – Ardekani, 2000) In retail business company, as for manufacturing companies two main arguments against Porter framework have emerged (Mintzberg, 1996; Worztel, 1987; Zentes and Anderer, 1994) – * Strategies that combine severa l competitive advantages are not considered by Porter. * The reduction of possible competitive advantage to two basic types is simplistic especially differentiation advantages can be reached in different ways. The implementation of combination of Cost Leadership and Differentiation Strategy (Hybrid Strategy): This new hybrid strategy may become even more important and more popular as Global competition increase. With generic strategy company improve their ability to adapt quick environment changes and learn new skills and technologies involving customer’s value with products at low cost compare to competitor’s products. Cost leadership enables the company to charge the lowest competitive price and achieving competitive advantage by delivering value to customers based on both product features and low price. Competitive strategy is not only feasible but generates superior incremental performance result in multiple sources of competitive advantage. This will generate superior performance over the inability to success. The success of Japanese companies such as Toyota, Canon and Honda are best examples of cost leadership and differentiation strategies. (Ishikura, 1983). Porter’s Generic Strategies in Hospitality Industry: 1. Cost Leadership Strategy: Hotelier such as Fairfield Inns, Etap offer services which are basics. Thus by doing so, they keep the cost at minimum and attract lot of market segment. . Differentiation Strategy: Chain of hotels such as Marriott and Hilton apply this strategy by providing guests with high quality and special service and experience. 3. Focus Strategy: Four Seasons only stress on elite guests and Burj Al Arab hotel only target guests such as royal families, celebrities, and rich industrialists. Five Forces Analysis: Porter developed this model as a fram ework to understand the profitability about the industry. Mentioned below are the five forces: * Supplier’s power * Buyer’s power * The threat of substitutes * The ease of entry to the market The intensity of rivalry in the market Porter Five Forces that shape industry competition: Example of a pharmaceutical company in US: †¢ Potential New Entrants: There are high barriers for entry especially in the US market due to the regulatory compliance, patent laws and the risk associated with the industry this remains a weak competitive force. The cost related to the RD also limits the Potentials New Entrants. †¢ Suppliers: Supplier power in low as the majority of the pharmaceutical sale is among the ten large pharmaceutical companies also they remain the major costumer for the chemical industry. Buyers: The power of the buyers is a moderate competitive force. Increasing pressure is being applied on the manufacturers to reduce the prices. In the pharmaceutical indust ry the end-user of the product has very low power as they buy the drugs that the decision maker or the doctor prescribes. †¢ Substitutes: This competitive power is weak when the products have the patent production but gets medium when they are off patent. CONCLUSION: Successful organization adopts a combination of competitive aspect to build a hybrid strategy. i. e. Design and low cost, quality and price . Only competing on price is not good enough (Daan Assens’s Learning , 2010). Cost leadership and differentiation strategies are very successful in much different kind of industries, for developing, transition and developed economics. Cost leadership, Differentiation and hybrid strategies have been successfully applied for very broad range of products and services from retail products to luxury products. TABLE 1: STRATEGIES USED BY THE COMPANIES No. | Strategy| Where has the strategy been applied | Products/Services that the strategy has been applied | 1. Cost Leadership| Developing, Transition and developed economics (worldwide)| Cars Industry (Toyota), Airline Business (Air Asia), Retail Business (Giant and Carrefour Supermarket)| 2. | Differentiation| Developing, Transition and developed economics (worldwide)| Cars and Motor cycle Mercedes Benz, Harley Davidson, Titan Watches, Domino Pizza, Apple , 3M| 3. | Hybrid – (Combination of Cost Leadership and Differentiation S trategy)| Developing, Transition and developed economics (worldwide)| Car Industry – Toyota, Honda, Furniture Industry – IKEA| REFERENCES: Acquaah, M. Yasai-Ardekani, M. (2006). Does the implementation of a combination competitive strategy yield incremental performance benefit? A new perspective from transition economy in Sub-Saharan Africa. Journal of Business Research 61, 346 – 354. * Anderer, M. (1997). Internationaliseerung im Einzelhandel. Deutscher Fachverlag, Frankfurt. * Aulakh, Preet S. , Masaaki Kotabe. Hildy Teegen. (2000). Export Strategies and Performance of Firms from Emerging Economies: Evidence from Brazil, Chile and Mexico. Academy of Management Journal, Vol. 3 (3), 342-61. * Bingxin Li, C. Juan Li, J. (2008). Achieving Superior Financial Performance in China : Differentiation, Cost Leadership or Both? American Marketing Association, Journal of International Marketing, Vol. 16(3), 1-22. * Daan Assen’s Learning, (2010). Hybrid strategy: sustainable competitive advantage. http://www. daanassen. com/hybrid-strategy-sustainable-competitive-advantage (3 Jan, 2011). * Dess, G. , G. Davis, P. S. (1984). Porter’s (1980) generic strategies as determinants of strategic group memberships and organizational performance. Academic of Management Journal 27, 467-488. * Frambach, Ruud T. , Jaideep Prabhu. Theo M. M. Verhallen. (2003). The Influence of Business Strategy on New Product Activity: The Role of Market Orientation. International Journal of Research in Marketing, Vol. 20 (4), 377-97. * Hutchinson, Karise, Nicholas Alexander, Barry Quinn Anne Marie Doherty. (2007). Internalization Motives and Facilitating Factors: Qualitative Evidence from Smaller Specialist Retailers. Journal of International Marketing, Vol. 15 (3), 96-122. * Kim, E. , Nam, D. Stimpert, J. L. (2004). Testing the Applicability of Porter’s Generic Strategies in the Digital Age: a Study of Korean Cyber Malls. Journal of Business Strategies, Vol. 21, 19-45. * Miller, A. Dess, G. (1993). Academy of Management Assessing Porter’s (1980) Model in terms of its Generalizability, Accuracy and Simplicity. Journal 36 (4), 763-788. * Mintzberg, H. (1996). Generic Business Strategies. In: Mintzberg, H. , Quinn, J. (Eds), The Strategy Process, thirded. Prentice Hall International, Upper Saddle River/Nj, 83-92. * Morshett, D. , Benhard Swoboda Hanna Schramm-Klein. (2006). Competitive Strategy in Retailing – An Investigation of the Applicability of Porter Framework for Food Retailers. Science Direct. Journal of Retailing and Customer Services 13, 275-287. * Nayyar, P. R. (1993). Performance Effect on Information Asymmetry and scope in diversified Service Firms. Academy of Management Journal, 36, 28 -58. * Pearce, J. Robinson, R. (1994). Strategic Management–Formulation, Implementation and Control, Fifth Edition. Irwin, Burr Ridge/IL. * Porter ME. (1985). Creating and sustaining superior performance. Competitive Advantage. New York : Free Press. Schonberger, R. (1994). Human Resource Management Lessons from a Decade of Total Quality Management and Reengineering. California Management Review, Vol. 36 (4), 109-134. * Worztel, L. 1987. Retailing Strategies for to Day’s Mature Market Place. Journal of Business Strategy 8 (Spring), 45-56. * Yasai-Ardekani, M. , Nystrom, PC. (1996). Design for Environmental Scanning Systems: Test of a Co ntingency Theory. Management Science, 187-204. * Zentes, J, Anderer, M. (1994). Retail Monitoring 1/94: Customer Service as a Way Out of Crises. GDI-Retailer- Trendletter, Vol. 2(1), 1-29. How to cite Qantas, Essay examples

Traditional Method Of Costing Has The Essence Of Dealing With Overheads By Accounting Essay Example For Students

Traditional Method Of Costing Has The Essence Of Dealing With Overheads By Accounting Essay Outline1 Abstraction2 Introduction3 Keywords4 Literature Review5 Methodology6 Findingss7 Decision Abstraction In recent old ages the universe of bing systems have shown major developments in bing techniques, specifically a major part of activity-based costing ( ABC ) in fabrication and services organisations. This survey aims to place the grounds why activity-based costing is preferred to traditional costing tools in modern fabrication environment ; why directors are demoing their involvements in the acceptance of ABC to better their fiscal public presentation, managerial and production efficiency ; how ABC helps directors to extinguish production inefficiencies ; how ABC facilitates adaptative and productive acquisition in organisations and the utility of ABC in seller choice, service sector and SME s. Traditional measurement methods of cost accounting proved deficient on these issues, which leads to the innovation of activity-based costing. Introduction Traditional method of costing has the kernel of covering with operating expenses by dividing them into variable operating expenses and fixed operating expenses. If we are utilizing soaking up costing, we will foremost make up ones mind the suited footing for soaking up ( e.g. machine hours or labour hours ) , so we will absorb all the operating expenses on that footing. The traditional costing methods were designed around 1870-1920. In those yearss industry was labour intensive, there was no mechanization, merchandise assortment was little and overhead costs in organisations were by and large really low as compared to today. However, it changed quickly from 1960 s peculiarly 1980 s due to the job of increased deficiency of relevancy of traditional cost accounting methods. Activity Based Costing ( ABC ) is based on the penetration that activities create costs, while merchandises consume activities. ABC is a costing technique that first identifies the major activities that give rise to overhead costs, so groups activities holding same cost drivers into cost pools and eventually assigns entire operating expense costs to each merchandise or service by ciphering soaking up rate for each cost pool. So we can state that ABC is a costing technique in which multiple operating expense cost pools are created on the footing of one or more non-volume related factors. There is a construct of cost pool and cost driver that distinguishes ABC from traditional costing. Cost driver can be any factor that causes alteration in the cost of an activity. Under ABC operating expense costs are assigned to merchandises on the footing of cause and consequence relationship. Traditional systems frequently rely on unpredictable allotments of indirect costs ; peculiarly they rely extensively on volume-based allotments. Volume based activities are those which have high correlativity with figure of units produced. Most of the indirect costs are non volume-based. If volume-based allotments are used high volume merchandises are likely to be assigned with greater proportion of indirect costs than they have consumed, whereas low volume merchandises will be assigned lower proportion. It will take to over costing of high volume merchandises and under bing of low volume merchandises, which will further supply misdirecting information. So, traditional systems fail to acknowledge the relationship between costs, activities and merchandises by using volume-related overhead soaking up rates merely. For Example, a company produced two merchandises merchandise A and merchandise B. Merchandise A which is a low volume point is produced harmonizing to client specifications that may demand certain activities such as particular technology, extra testing and any machine apparatuss, whereas merchandise B which is a high volume point demands small attending, no particular activities and running continuously. If this company is utilizing traditional costing technique it will apportion all of its operating expenses to merchandises based on figure of machine hours, which will ensue in the allotment of small overhead cost to merchandise A because it did non hold many machine hours but retrieve it demanded tonss of technology, proving and setup activities and costs of these activities have been ignored by traditional system. In contrast, merchandise B will hold tremendous sum of operating expenses due to all those machine hours, but in world it demanded small overhead activity. It will take to misreckoning of each merchandises true entire cost of fabrication. ABC overcomes this job by delegating operating expenses on more than one activity. It recognizes that particular technology, proving and machine apparatuss are besides activities which consume resources of company, so costs of resources used in those activities should besides be calculated and included in entire overhead costs of merely those merchandises that demanded and consumed those activities. So if you want to command your costs, you have to first command the activities that cause the costs to be incurred. ABC may assist to place value added activities and non-value added activities, which will assist directors to command their costs by extinguishing non-value added activities or at least cut downing figure of cost drivers of non-value added activities. The beauty of ABC is that it reveals fresh capacity and aid directors to extinguish those capacities so that there would be no merchandise cost deformation. There are two stages of activity accounting. First stage is called Activity-Based Accounting ( ABC ) where it tells us how we can better our fight by pull offing our resources more expeditiously. It does non merely supply accurate costs but it is a mechanism for pull offing costs. Second stage is called Activity-Based Management ( ABM ) which is an of import tool for accomplishing uninterrupted betterment. In ABM, we use information obtained from ABC to do strategic be tterments in organisations. Directors by and large achieve betterments by pull offing activities in four ways: Activity decrease by cut downing the clip required to execute activity. Activity riddance by extinguishing the full activity. Activity choice by choosing the low-priced activity from set of activity options. Activity sharing here directors make such alterations that allow them to portion activities with other merchandises to accomplish economic systems of graduated table. It depend on director s ability that how he will utilize all these four ways expeditiously and efficaciously to accomplish strategic betterments in organisations. The most accurate costs under ABC allow direction to be after more efficaciously, better quality of cost control and eventually evaluate director s public presentation on meaningful footing. To implement ABC in any organisation is non an easy undertaking, you have to update your activity systems as merchandises and procedures diversify. This survey aims to show that ABC is preferred to traditional soaking up costing in the modern fabrication environment because now indirect costs constitute greater proportion of entire merchandise costs due to merchandise s complex specifications, widespread usage of computing machine control and mechanization and increased usage of just-in-time ( JIT ) production methods which will finally better the fiscal public presentation of organisations. The usage of ABC with strategic attacks like entire quality direction ( TQM ) , JIT methods etc, can do it more utile. ABC is non merely following by fabricating companies but now many services organisations are demoing their involvement in the importance of costs for determination devising intent. When you implement ABC in your organisation a alteration in the direction construction should happen, directors can accommodate ABM by utilizing the information provided by ABC to accomplish required net incomes. Application of ABC is a squad work and requires a batch of manpower preparation. Teachers vs. coaches EssayGunasekaran, Marri, Grieve ( 1999 ) suggests the usage of ABC in SME s. The execution of ABC in SME s can assist them in bettering their fiscal and non-financial public presentation. It will assist to cut down direct labor constituents, uninterrupted accomplishment development, reengineering ( P, 390 ) and developing positive attitude of workers that contributes toward successful execution of operations ( Sage and Fox 1989 ) . Chan, Keung and Chung ( 2000 ) conducted a survey to raise an empirical attack with the aid of which we can plan an ABC templet to utilize it as a tool for easy integrating in an SME environment. No uncertainty ABC was foremost designed to carry through the cost direction demands of fabrication and industrial organisations but researches shortly realized that they can besides use this system in services sector. Kaplan ( 1994 ) paperss that since 1980 s many houses working in services sector e.g. Bankss, infirmaries and logistic companies had already developed their costing system similar to ABC. It means there was besides a demand for ABC like system in services organisation which tells true and accurate costs. By implementing activity-based costing technique in English infirmaries and British National Health system ( King et. Al, 1994 ) , to rational and concern activities of university scene ( Granof, E. Platt, Vaysman, 2000 ) , libraries ( Snyder and Davenport, 1997 ; Ellis-Newman 2003 ) , sport organisations ( Dimitropoulos, 2007 ) and for planning and commanding twenty-four hours surgery unit activities of infirmaries ( Antikainen, Roivainen, Hyvarinen, Toivonen, Karr, 2 005 ) , houses can easy accomplish strategic aims. ABC is likely to be adopted by larger houses than smaller 1s because of holding diverse mix merchandises or services ( Roztocki and M. Schultz, ) . If organisations with diverse merchandises and services use individual cost driver to absorb high operating expenses, may falsify its cost estimations ( Cooper and Kaplan, 1988 ) . Initially ABC was used merely by fabricating companies and industries and many research workers discusses it s usefulness in selling determinations. Stevenson et al. , ( 1993 ) introduces ABC as a powerful toll for concern selling determination shapers with accents on the consequence of ABC on productiveness steps. John C. Lere ( 2000 ) states the importance of fabrication costs in sing monetary value dialogues The information provided by ABC captures the differences among client s orders and helps industrial selling determination shapers to understand the influence of possible alterations in client s specification on fabrication cost. Feature of ABC is its acknowledgment that cost does non merely vary with volume but it can besides change with some other activities i.e. unit-level activities, Batch-level activities and Product-level activities ( Cooper, 1990 ) . Steve R. Letza and Ken Gadd ( 1994 ) examines the usage of ABM with TQM in entire quality organisations to place their common characteristics and compatibility as direction tools. They stated that by utilizing the accounting information generated by ABC, TQM can measure costs efficaciously. Charles Praker ( 2000 ) remarks on the usage of ABC and balanced scorecard as the more modern attacks to public presentation measuring as it helps a batch in doing judgements and determinations. We use ABC informations every bit input to mensurate public presentations. Methodology This survey is based on documental analysis and based on secondary degree. Extensive literature has been reviewed to get at the decision with respect to the significance and application of ABC in different organisational scenes. Work of different researches helped us to garner information sing utility of activity-based costing in fabrication and services organisations. For that purpose a figure of 36 research articles written by assorted writers and published in assorted research channels in different states were studied. These writers belong to assorted states. The common findings are generalized henceforth. Finally a decision was drawn. Findingss Cagwin A ; Bouwman ( 2000 ) reported that there is a positive association between activity-based costing and betterment in fiscal public presentation when we use ABC with new fabricating techniques and methods such as entire quality direction ( TQM ) attack, just-in-time ( JIT ) fabrication methods, flexible fabrication systems ( FMS ) etc. Gunasekaran, Marri, Grieve ( 1999 ) besides supported this fact. Gunasekaran, Marri, Grieve ( 1999 ) presented the fact that there is a positive relationship between utility of ABC and edification of engineering, if u do non upgrade your technological resources you have to bear immense costs of informations aggregation and processing. Sohal A ; W.C. Chung ( 1998 ) and Cagwin A ; Bouwman ( 2000 ) supported this fact. Horngren ( 1977 ) argued that there are some concealed factors that influence the industrial and fabrication disbursals, if u want to increase managerial and production efficiency you have to cover with those factors really carefully. Traditional costing technique has failed in covering with those factors. Activity-Based costing is a technique which helps us in happening the manner to uncover those factors. Miller A ; Vollman ( 1985 ) , Johnson A ; Kaplan ( 1987 ) and Johnson, H. T. ( 1990 ) supported this statement. Driver ( 2001 ) reported that ABC facilitates adaptative and productive acquisition by continuously bettering bing cognition of single employees and troughs in organisations and developing learning civilization within organisations. Argyris ( 1977 ) , March ( 1991 ) , Appelbaum and Goransson ( 1997 ) , Cooper et Al. ( 1992 ) , and Michelman et Al. ( 1999 ) supported this fact. Now troughs are taking involvement in the usage of ABC in seller choice procedure. By carefully taking provider with the aid of ABC can minimise entire extra costs which relate to buy determinations. Dogan and Sahin ( 2003 ) , de Boer et Al. ( 2001 ) , Swift Owens ( 1995 ) and Brown ( 1998 ) support this fact. Because of the utility of activity-based costing, many services organisations such as infirmaries, universities, libraries, athletics organisations, Bankss, logistic companies etc. and SME s are following this new costing technique to better their fiscal and non-financial public presentation by cut downing direct labor constituents, uninterrupted accomplishment development and reengineering. Kaplan ( 1994 ) , King et. Al ( 1994 ) , Antikainen, Roivainen, Hyvarinen, Toivonen, Karr ( 2005 ) , Granof, E. Platt, Vaysman ( 2000 ) , Snyder and Davenport ( 1997 ) , Ellis-Newman ( 2003 ) , Gunasekaran, Marri, Grieve ( 1999 ) and Sage and Fox ( 1989 ) support this fact. Utility of ABC in selling determinations, importance of fabrication costs information provided by ABC in sing monetary value dialogues, usage of ABC and balanced scorecard as the more modern attacks to public presentation measuring, usage of ABM with TQM in entire quality organisations as direction tool and utility of ABC in houses holding diverse merchandises, services and processes Lashkar-e-Taiba directors think that activity-based costing is the most appropriate costing technique in modern fabrication and services environment than traditional bing techniques. Stevenson et Al. ( 1993 ) , John C. Lere ( 2000 ) , Charles Praker ( 2000 ) , Steve R. Letza and Ken Gadd ( 1994 ) and Cooper and Kaplan ( 1988 ) support this fact. So all the writers irrespective of civilization are of one position that activity-based costing is from hurting to joy. Decision From all of the above treatment and findings, it is concluded that there are many issues which can non be dealt comprehensively and meaningfully with the aid of conventional accounting techniques. Traditional accounting has failed to turn to these issues in deepness and in conformity with modern fabricating which lead to the innovation of a more improved and progressive accounting attack i.e. ACTIVITY-BASED COSTING. Many fabrication and services organisations are progressively following this new technique to better their fiscal and non-financial public presentation, pricing determinations, selling determinations and purchase determinations because of the turning importance of costs in determination devising intent.