Tuesday, September 17, 2019


Unethical Practices at Barclays Bank

         In this case study we have the United States of Justice conducting a criminal investigation into abuse of the LIBOR (London Interbank Offered Rate) interest rate regulated by the British Banker’s Administration. And resulting on a fine of more than $440 million by Unites States and English financial regulatory agencies for manipulating the LIBOR to its advantages, causing world-wide effects to business and individuals. 

Ethical Development Level
In the case of Barclays Bank and the manipulation of the LIBOR (London Interbank Offered Rate). It can easily be determined that the executives of this organization correspond to the Preconventional morality level. “Preconventional morality can be define as the most basic level, is childlike. It is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded” (Lamb, Hair, & McDaniel, 2014, p.34). The manipulation of the LIBOR interest rates by proposing artificially low bank-to-bank rates to make themselves more stable than they actually were showed that they did not care about anyone else but rewarding themselves.

Corporate Social Responsibility
 “Corporate Social Responsibility: Is the business’s concern for society’s welfare. This concern is demonstrated by managers who consider the best interest of the company and the society within which it operates” (Lamb, Hair, & McDaniel, 2014, p.37). The manipulation of the LIBOR rate Barclays Bank not only affected London banks and business executives, but also small business and individuals like students who have students’ loans, and homeowners, whom interest rates depend on the LIBOR rate since it is use all around the world as an interest rate and a financial instrument benchmark. If Barclay’s bank executives had had any kind of Corporate Social Responsibility they had never manipulated the rate to their best interest without thinking on the bad consequences for the rest of the society.   

Corporate Social Responsibility Response Actions
To take corporate Social Responsibility of their actions after the scandal broke up Barclays bank should of ask a public general apology and offered to compensated the most affected victims of their unethical practices, and compromise to do a clean up of all their unethical executives and make them responsible for their actions. Show society that people have to be responsible and accountable for their actions regardless of the position they held within the organization.

Postconventional Morality
But in the other hand if the executives at Barclays Bank would of stopped and think for a moment if  “Even though manipulating the LIBOR will increase company profits, is it the right thing to do in the long run?” they would of being in the Postconventional morality level. This is the last level of morality that represents the morality of and adult. “At this level, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run”(Lamb, Hair, & McDaniel, 2014, p.34). Being at this level show that the organization and the people in it have an excellent ethical and moral integrity.

Ethics and Social Responsibility in Marketing
“Ethics is the moral principle that generally governs the conduct of an individual or a group” (Lamb, Hair, & McDaniel, 2014, p.32). Ethics are the base of a successful long lasting relationship between the organization and their customers since the businesspersons have the obligation to be honest with their customers, they are also responsible for preserving their customers environment and protecting their rights. By doing so they have insured a good long relationship with them and these actions would automatically put them on the philanthropic responsibilities level of the pyramid of Corporate Social Responsibility since they would not only be profitable, obey the law, be ethical, but a good corporate citizen, contributing to the community and improving the quality of life.   


Lamb, C. W., Hair, J. F., & McDaniel,

Sunday, September 15, 2019

Busienss to Business (B2B) Applications

B2B applications that leverage the Internet are not visible to the public in the same way that Web sites for B2C applications are. Prior to the Internet, many large companies had in proprietary EDI systems for electronic transmission of standard documents that used private networks. By the early 1990s there was a large installed base of these systems, and because these proprietary systems were also highly reliable and efficient, it took almost a decade for many large businesses to rely on the Internet as a secure communications channel. However, for many smaller businesses, the custom EDI systems of the past had not been economically feasible, and for these firms the Internet created entirely new B2B opportunities. By 2003, the dollar volume of B2B e-business had grown to about $1.3 trillion (from about $250 billion three years earlier) and to $3.6 trillion by 2008.

The growing usage of mobile devices for wireless cellular communications has fueled the development of e-business applications designed for these mobile devices, sometimes referred to as m-commerce. One of the new business opportunities here is to provide customized content to the user based on the actual geographic location of the handheld device as well as demographic data.


Pollard, C., Turban, E., Wood, G. (2018). Information technology for management: On-demand strategies for performance, growth, and sustainability (11th ed.). Hoboken, NJ: John Wiley & Sons, Inc.

Saturday, September 14, 2019

Corporate Fraud is a Serious Issue

Fraud can be prevented by secure processes and by ensuring that people allowed access to them are honest. This is easier said than done; failures will occur and every company needs contingency plans as a safety net. Contrary to popular belief, corporate fraud happens to good companies and effective managers. Investigating Corporate Fraud a fascinating and invaluable source of practical expert guidance on a subject strewn with potential dangers.

Corporate fraud has become the center of public concern, including but not limited to regulators, investors, a board of directors and academics. Since the outbreak of corporate scandals in 2000 and the 2007 financial crisis, there have been increasing regulatory restrictions and scrutiny to reduce the opportunity and incentive for corporate fraud. However, according to the PricewaterhouseCooper (2016) (PwC) report, the economic crime across the globe still represents more than a third of all criminal activities. The Federal Bureau of Investigation (FBI) (2011) also reported that pending cases for corporate fraud in the USA continue to rise in recent years. Therefore, despite increased regulations, corporate fraud seems to be a serious continuing epidemic problem.

Harjoto, M. A. (2017). Corporate social responsibility and corporate fraud. Social Responsibility Journal, 13(4), 762-779. 

Comer, M. J. (2017). Investigating corporate fraud Routledge Ltd. doi:10.4324/9781315589732

Friday, September 13, 2019

McDonald’s VS Starbucks analysis

Competition is Fierce

McDonald’s is an American company in the fast food service industry that was founded in 1940. Its current headquarters are in Oak Brook, Illinois. The company owns and operates a chain of restaurants in addition to 30,000 franchises located in 199 countries found all over the globe and serving millions of customers on a daily basis (Peng, 2013). McDonald's menu comprises of hamburgers, cheeseburgers and French fries in addition to chicken products and soft drinks, desserts, wraps, milkshakes and foods for breakfast. The company, however, makes the effort to produce their menu items locally and at a set standard to maintain quality and increase the products relevancy to the local community. The quality of McDonald’s services is also enhanced by the use of e-commerce through the utilization of technological developments such as the McDonald’s website for marketing products (Dorfman, 2014). Secondly, the use of online service for placing orders, delivery, and advertising on Facebook and Instagram and the automation of its business activities. McDonald's also uses menu display on a television screen and free Wi-Fi to customers as a rebrand of its business operations and increase its competitive advantage.
Starbucks is also a company in the food industry offering coffee and running various coffee shops in the US and around the world (Gilbert, 2008). Through E-commerce, Starbucks pioneered the digitization of the food service industry through the use of pre-loaded loyalty card and order-ahead app that has helped revitalize the in-store experience and enable easy shipping of goods up to the customers’ houses (Lindner, 2017). However, Starbuck recently closed down its online store as a move to simplify its sales. This endeavor leaves Starbucks dependent on direct sales from the stores.
From this analysis, McDonald's sales and business operations are fully automated in contrast to Starbucks business operations. In my view thus, considering factors such as competition, customer service, and diversification of product helps determine effective use of e-commerce technology. In this regard, McDonald's has effectively utilized the e-commerce technologies better than Starbucks.

Dorfman, J. H. (2014) Economics and Management of the Food Industry. Routledge. 
Gilbert, S. (2008) The Story of Starbucks. The Creative Company.
Lindner, M. Starbucks will shutter its e‑commerce site to focus on its mobile app and stores.        Digital Commerce 360. Retrieved from         https://www.digitalcommerce360.com/2017/08/31/starbucks-shutter-e-commerce-site-            focus-mobile-app-stores/
Peng, M. W. (2013) Global Strategy. Cengage Learning.

Thursday, September 12, 2019

Amazon is facing constraints

Amazon is facing constraints in short run as either as you have stated that they are imposing taxes on some of their sales; however, Amazon is anticipating this and has already planned to diversify its investment to include the recent purchase of whole Food in 2017 for $13.7bn (Phillips-Connolly & Connolly, 2017). Also, Amazon has recently opened its stores called Amazon Go that will drastically change the way people shop from traditional stores as they have implemented artificial intelligent in these store. Amazon is currently planning to open many of these stores around the U.S. Therefore, I do agree with you that Amazon is facing some competition in the near run, yet the way Amazon utilize IT technologies would sure place them ahead of their competitors in the long run. 

 Phillips-Connolly, K., & Connolly, A. J. (2017). When amazon ate whole foods: Big changes for big food. International Food and Agribusiness Management Review, 20(5), 615-622.

Wednesday, September 11, 2019

Core Competencies and Competitive Advantage

Our Core Competencies
            At R&R Sensors (this is the name I have given my Capsim Core company), the top three core competencies are: providing a high-end sensor that appeals directly to the high tech customers, exceptional teamwork, and outstanding ethical values. Our first competency is essentially product redesign as we are moving away from a sensor that appeals to both low tech and high tech customers and putting our focus into high tech customers. This will enable R&R Sensors to focus more on this one area, do thorough research on what makes a high tech customer happy and then deliver by giving them a product with the performance, size, and reliability they are after. By taking the time to understand our target market, we can deliver a product that will be stellar and unique, and one of the best ways to understand the core competencies we have is to know the value of uniqueness within our own products. By using the idea of core competencies to better understand the talents a company has, we can develop a unique approach to focusing on areas that matter the most to our customers, this is where the second and third competencies come in (Mind Tools, 2018). After making the tough decision to continue with the marketing campaign for creating a better production process that eliminates the use of wasteful materials, but in doing so changing the campaign so the public was aware the waste was not reduced as of yet, our team came together and worked hard to research this problem. R&R Sensors did not leave this solely up to Marketing, instead the company worked as one big team to start the process to make this change happen. When an organization comes together as a unified team, this becomes a core competency, not all businesses can pull this off, and when the team works well together, operations management, production, and the products have better results, which then are transferred to the customers in a positive way. Third, our company prides itself on our outstanding ethical values, our morals and values are the reason we chose to not cover up the lack of waste reduction, even if it led to slightly lower profits than we would have liked. Our customers, all of our stakeholders, deserve our very best and we believe in the day and age where ethics are so hard come by, we do this best! To determine whether or not the unique things a company thinks are core competencies truly are or not, three tests need to be passed with a “yes”:
1. Is our business giving the customers something they really want and going about it in a way that strongly influences them to purchase from us, something relevant?
2. Is the core competence hard to duplicate, hard for other companies to copy?
3. Does our product or service open up market opportunities or is it stuck with a very small market?
If the answer is yes to all the questions above, we can feel confident that we have developed true core competencies (Mind Tools, 2018). We are developing a redesigned sensor that the high tech customers want, teamwork that works in a way that benefits the customers, and ethics that attracts customers to us. We want our sensors to be made in such a way that, yes, they are hard to duplicate and we believe our teams and ethics are also the same way, we work together so well that it will be hard to find a team or company like the one we have created. Finally, our sensors are not limited to a few small market places, they are sensors that belong in many electronic devices from cell phones to cars to elevators and our high tech customers can come from any location. Our team members and ethical views will pave the way to get there.
Competitive Advantages
            Our core competencies give us part of our competitive advantage because they go hand-in-hand. In order for a strength to become an advantage, an opportunity has to be filled by the product or service Sometimes, advantages are more commanding than other ones (Page, 2014). Our first advantage comes from the sensors we are redesigning, these will be updated in a way to be more appealing to the performance, size, and reliability that the high tech customers are after and we want to do this better than the competition. Creating a sensor that stands out having better performance, smaller size, and is more reliable all within the price range will appeal to all our high tech customers and give us the advantage over competitors who are focusing more on low tech, both sets of customers, or are trying to focus on high tech, but fail to deliver at the right specifications.

Positioning Strategy
            A positioning strategy is developed as a way to put a company’s products or services ahead of the others in the industry, it’s the reason it is different, such as why the major fast food chains can all serve burgers, but those burgers are all different in their own way and marketed so. Once the strategy is created it needs to be tested, making sure it’s as good as the company thinks it is and the only ones who can accurately let us know are the targeted customers we are marketing the sensors to (Entrepreneur, 2018). As discussed previously, our goal is to create a sensor for the high tech market, in order to position ourselves in a way to be unique among our competitors, we will have to prove it is the best by showing the research our Research and Development Department has done and also include parts of the production process, not enough to give away our product secrets, but enough to show that this sensor really is the best in the industry. And because actions speak louder than words, also showing that we are a unified, ethical team here at R&R Sensors will be made part of the positioning strategy as well. It seems that many companies anymore “talk the talk”, but do not “walk the walk” when it comes to morals, values, and ethics in the workplace and so many have let their customers down by cutting corners or lying about the products they are selling (both Volkswagen and Blue Buffalo come to mind). We will be different, we will stand out from the crowd of competitors and be that ethical company that can be trusted and we will do this by being open, honest, and also owning up to our mistakes and finding ways to correct them. In our situation, a lot of what we are doing product-wise is coming from the Research and Development Department doing exactly what the name implies, researching the best ways to create and update the sensor we have by using the newest technology available; then, developing the sensor into the newly designed product we will sell. This is what the department is good at, these are the key qualities these employees have, which will contribute to R&R Sensor’s success, these qualities are that department’s core competencies. The teamwork attitude and promise to be ethical stems from the organization’s attitudes and behaviors that set us apart, but also position us in a way to be in an advantageous place among competitors. These competencies should always be built upon and revised when needed, they are not always going to be the same, as the business changes and grows, so will our core competencies (Krompf, 2007).
Creating Value
            When our positioning strategy is to create something better than what’s already on the market, this automatically creates value for all our stakeholders – which includes shareholders, communities, and society as stakeholders is described as those affected by the actions we do here as a company whether directly or indirectly (Huemann et all, 2016). The improved sensor will appeal to our customer, supplier, employee, and shareholder-based stakeholders. Our customers will be excited to try out the new high tech sensor with all the improvements that have been made, suppliers will benefit as we will have to order higher quality supplies for production, employees will have the opportunity to recreate something into a newer product and embrace their creativity, and shareholders will be excited that this improved sensor will deliver higher profits. Being an organizational team as well as ethical will benefit all those involved, especially the community surrounding the business. Having a trustworthy company means those purchasing from us will have a reliable product where their money will be well-spent instead of wasted and our internal stakeholders will know they can rely on those in charge to tell them the truth while allowing the freedom to work creatively as a team, their work will be valued and each worker respected. Starting with our employees and spreading to society as a whole means our core competencies, competitive advantage, and positioning strategy will all work together to come full circle to benefit everyone we possibly can.

Entrepreneur. (2018). Positioning. Retrieved from: https://www.entrepreneur.com/encyclopedia/positioning
Heumann, Martina; Eskerod, Pernille; and Ringhofer, Claudia. (2016). Rethink! Project Stakeholder Management. 
Krompf, Warren M. (2007). Identify Core Competencies for Job Success: Organization Development, Vol. 24. 
Mind Tools. (2018). Core Competencies Analysis. Retrieved from:https://www.mindtools.com/pages/article/newTMC_94.htm
Page, Kogan. (2014). Uncommon Leadership: How to Build Competitive Advantage by Thinking Differently. 

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