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Although audits can be scary for the people getting audited, its also a good thing. It seems scary because you don't want to find out if you did something wrong that would potentially get you in trouble but audits are just protecting you and the company.

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This diagram shows the seven basic elements of total quality management. I liked the umbrella theme because it really shows the two differences in principles and values versus techniques on that. It really helped shape what it meant.

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Transformational leaders are listed in this article. I was not surprised to see some of the most famous people in the world on this list. Transformational leaders are one of a kind. My mother in law and father who are huge leaders my lives are transformational leaders.

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By Murray Johannsen, Last Updated April 20, 2019. Mr. Johannsen also routinely does Live Presentations for corporations and associations. Feel to connect via Linkedin, or by email. First Published March 22, 2014.
Some of the most famous individuals in history are transformational in one form or another. It's one among many leadership styles. In fact, transformational leaders have been written about for thousands of years and have both praised (Christ and Buddha) and cursed (Attila the Hun and Genghis Khan).

Transformational leadership is seen on all continents, is practiced in many contexts. For example, entrepreneurs must function as transformational leaders to transform a small business into a large one.

It must be said, however, that few managers or CEO's are transformational. Most like the status quo and want to keep it that way.

One characteristic of the great transformational leaders is the ability to inspire. They just don't know how to bore and snore. Perhaps its because they know how to appeal to your why.

Great Transformational Leaders

Below are different lists of famous transformational leaders, some military, many political, and more than a few who have achieved greatness in the area of business.

Ahn, Chul-Soo

Alexander The Great

Arnold, Henry

Ataturk, Mustapha

Aristotle

Attila the Hun

Aurelius, Marcus

Banks Tyra

Bloomberg, Michael

Bolivar, Simon

Boyington, Gregory

Bradley, Omar

Branson, Richard

Buddha, Shakyamuni

Caligula

Carnegie, Andrew

Castro, Fidel

Catherine the Great

Caesar, Augustus

Caesar, Julius

Chaka

Chanel, Coco

Charlemagne

Charles I (King of England)

Chief Joseph

Christ, Jesus

Churchill, Winston

Cleopatra

Confucius

Cornwallis, Charles

Cromwell, Oliver

Chulalongkornm, King Rama V

Cyrus the Great

David Farragut

De Rothschild, Baron

Deere, John

Disney, Walt

Deng, XiaoPing

Eisenhower, Dwight

Elizabeth I

Fields, Debbie

Ford, Henry

Franklin, Benjamin

Frederick the Great

Freud, Sigmund

Gates, Bill and Melinda

Geronimo

Giannini, A. P.

Giap, Vo Nguen

Goering, Herman

Goldwyn, Samuel

Gorbachev, MikhailGrant, Ulysses

Guderian, Heinz

Hadrian

Hannibal

Hitler, Adolf

Ho, Chi Min

Homer

Iacocca, Lee

Ivan the Terrible

Jackson, Peter

Jackson, Thomas (Stonewall)

Jacqueline Cochrane

Joan of Arc

Jobs, Steve

Jodl, Alfred

Johnson, Samuel

Jones, Jim

Jones, John Paul

Jung, Carl

Jung, Joo Young

Kahn, Herman

Kaiser, Henry

Kelleeher, Herb

Keller, Hellen

Khan, Genghis

Khan, Kublai

King, Martin Luther

Kissinger, Henry

Koresh, David

Kroc, Ray

Lama, Dalai

Lan, Yang

Lao-tse

Lee, Gun Hee

Lee, Robert E.

Lombardi, Vince

Louis XIV (Sun King)

L'ouverture, Toussaint

Lynch, Peter

Machiavelli

Mandela, Nelson

Manson, Charles

Marion, Francis

Marshall, George C.

McArthur, Douglas

Mohammed

Montgomery, Bernard

Musk, Elon

Morgan, J. Pierpoint

Mountbatten, Louis

Napoleon

Nelson, Heratio

Nero

Nightingale, Florence

Ogilvy, David

Packard, David

Park, Chung Hee

Park, Guen Hye

Patten, George

Penny, J. C.

Pericles

Pershing, John

Peter the Great

Phadmasembhava

Plato

Pot, Pol

Queen Elizabeth II

Queen Victoria

Ramses II, Pharaoh

Rickover, Hyman

Rockefeller, John D.

Rommel, Erwin

Roosevelt, Eleanor

Roosevelt, Franklin

Roosevelt, Teddy

Saladin

Schultz, Howard

Schwab, Charles

Sejong the Great

Shahrzad, Rafati

Sloan, Alfred

Socrates

Tacitus

Tuthmose III, Pharaoh

Thucydides

Trump, Donald

Tse-Tung, Mao

Tzu, Sun

Vanderbilt, Cornelius

Villa, Francisco (Poncho)

Von Bismark, Otto

Von Clausewitz, Carl

Von Motlke, Helmuth

von Schlieffen, Alfred

Walton, Sam

Washington, George

Watson, Thomas, Jr.

Watson, Thomas, Sr.

Westinghouse, George

Whitney, Eli

Yamamoto, Isoroku

Yunus, Muhammad

Yi, Sun-sin

Zhou, Enlai

Below are lists of famous transformational leaders are grouped into transformational entrepreneurs and CEOs and geographically into the regions of America, Europe, Asia ,and Africa.

List 1: EUROPEAN TRANSFORMATIONAL LEADERS

European history is full of transformational leaders.

Some used their power to build; some used their power to destroy.

Some established a new order; others destroyed the old leaving nothing new in its place.

Many were successful; others tried and ultimately failed.

However they lived, they exerted strong influence on their followers.

List 2: TRANSFORMATIONAL LEADERS WHO ARE ENTREPRENEURS

By definintion, entreprenerus must be transformational leaders. And while the American business schools are great believers in that they have to be managers, they completely neglect how to be a lead.

List 3: TRANSFORMATIONAL CEOS

While there are exceptions such as Lou Gerstner, most CEO's of Fortune 500 companies are not transformational. Decades spent obeying corporate rules to get to the top, typically creates hesitation when it comes to changing those rules.

This lists concentrates on CEOs and business leaders who:

Are not founders of the corporation.

These individuals could be considered successful entrepreneurs.

Can heal an unhealthy culture.

For example, Steve Jobs makes makes our list of as a successful entrepreneur, but also makes this list since after he returned to Apple, it was a dysfunctional organization headed toward bankruptcy.

Did not grow organization through acquisition.

Many CEOs, being men and women of action, like to buy things. However, different sources have said that as many as 2/3 of corporate acquisitions are not good deals from the stand point of the acquiring organization's stockholders.

Do not need good PR firms.

Some CEOS who put on a pretty good facade as an enlightened, successful leader but the reality is much different. A classic example was "Chainsaw" - Al Dunlap.

List 4: FAMOUS TRANSFORMATIONAL LEADERS FROM ASIA

Many Asian leaders have been lost to history. Those that remain are truly fascinating. Great men and women who created nations were there was none.

Genghis Khan is undergoing something of leadership revival in Mongolia today. This site presents background information on the life of a transformational leader few of us would want to face, let alone oppose.

On the other hand, while some leaders accomplish things through the use of the sword, Gandhi chose the method of nonviolence.

List 5: TRANSFORMATIONAL LEADERS WHO ARE AMERICAN

Business only forms one arena for the transformational leader. Another is government. In fact, you might argue that government is a tougher test for the transformational leader than is business. For one thing, the scale is much different. A CEO influences thousands, a head of state, millions. And military leaders often function as heads of state.

Douglas McArthur as a general, he had a long and illustrious history. Transformational to a great degree, he set-up a new and completely different Japan compared to what had existed before World War II. This article also lists a series of leadership questions one can ask about your treatment of others.

List 6: FAMOUS TRANSFORMATIONAL LEADERS FROM AFRICA

Unfortunately, while humans began in Africa and migrated else where, the story of those great leaders who are now nameless and long forgotten. Here a few that are still remembered.

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125 Transformational Leaders: Lists of Famous Ones From Many Countries

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By Murray Johannsen, Last Updated April 20, 2019. Mr. Johannsen also routinely does Live Presentations for corporations and associations. Feel to connect via Linkedin, or by email. First Published March 22, 2014. Some of the most famous individuals in history are transformational in one form or another. It's one among many leadership styles.

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This website clearly explains Maslow's Hierarchy of needs motivational theory. It helped me understand what it was really saying.

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Maslow’s hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid.

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6 reasons why part time workers are awesome! This includes more free time, more open door opportunities and reduced stress levels! This is why I enjoy part time jobs.

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What Are the Chief Benefits of Working Part Time Versus Full Time?

With employers increasingly hiring more part-time workers and less full-time staffers, many in the workforce are considering the viability of part-time employment. Beyond the obvious income ramifications, there are hosts of advantages and disadvantages to consider, when determining if the part-time employment model works for you.

Key Takeaways

More Free Time to Pursue Other Projects and Activities

Arguably the biggest advantage of working part-time, is the increased free time, in which to pursue extracurricular activities. For those lacking the requisite academic credentials for their dream job, a part-time position may serve as a stepping stone that affords them the flexibility to obtain the certification needed to snag roles in their desired profession. Others may use part-time jobs to climb the ladder within an existing field. For example, an individual with a social work degree can obtain part-time entry-level work, that lets them simultaneously earn the graduate degree needed land a more lucrative mental health job.

Part-time jobs also appeal to those nurturing special projects, such as writing, civic outreach, and artistic endeavors. Such pursuits offer immense personal fulfillment, even if they don't bring in large paychecks.

Opening Doors to New Job Opportunities

When there are no full-time positions available within a given company, workers may accept part-time employment to posture themselves as the obvious candidate, when a coveted full-time slot becomes available. A part-time job can also help individuals gain experience and training in fields unfamiliar to them. After all, an employer who may be reluctant to hire an inexperienced person on a full-time basis, may be inclined to hire an eager candidate on a part-time basis, who expresses an enthusiastic desire to learn the trade.

Opportunity to Earn More Money

Although this may sound counter-intuitive, working part-time can sometimes enable an individual to make more money - especially if he or she is capable of balancing more than one job. For example, a person who pairs a 30 hour-per-week gig with another 20 hour-per-week gig may pull in a greater combined income, than a single full-time position would provide. Furthermore, given that many full-time salaried positions demand 50- to 60-hour work weeks, this individual may still end up working fewer total hours.

Reduced Stress Levels and Improved Health

Studies show that full-time workers tend to feel worn out, due to insufficient time needed to exercise, enjoy the sunny outdoors, and generally commit to a healthy lifestyle. Contrarily, part-time workers hit the gym more often and get a better night's sleep. Part-time employment also allows for more efficient management of daily tasks like grocery shopping, doing the laundry, and completing other household chores, ultimately resulting in more order at home.

Paradoxically, part-time workers often experience decreased financial stress, because they conform their spending to align with their income. This behavior is antithetical to the phenomenon known as lifestyle inflation, where one's expenses actually expand with increased income. In other words: those capable of adjusting to a slightly lower standard of living, often discover that working fewer hours is favorable to the demands of working full time.

The Importance of Family

Working part time is ideal for family-oriented individuals - especially those who value the opportunity to pick up their children from school. Furthermore, part-timers may save on daycare expenses, which may exceed the extra money earned by working full-time.

Although a certain income level is necessary to providing for one's family, those who earn just enough to pay for essential living expenses, while sacrificing luxury goods, may find short-term work to be an unacceptable trade-off.

Saving Money on Transportation Costs

One possible situational advantage to part-time work lies in the area of transportation costs. Case in point: an individual who finds part-time work near his or her home may save more on transportation expenses, than those who commute an hour or more daily, to a full-time job. Not only can part-timers save on gas and car maintenance costs, but they may also shave dollars from their monthly auto insurance premiums, which are often mileage dependent.

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Quality of Life: 6 Benefits of Working Part Time Instead of Full Time

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With employers increasingly hiring more part-time workers and less full-time staffers, many in the workforce are considering the viability of part-time employment. Beyond the obvious income ramifications, there are hosts of advantages and disadvantages to consider, when determining if the part-time employment model works for you.

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According to this website, in 2017 there were 6 million contingent workers. The number of contingent workers have gone down considerably since 1995.

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I thought this comic was funny. Training is definitely a must have to any business. You have to train them the way you want them do to things within the company. If you don't, then you will not succeed.

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I thought this was hilarious in regards to how functional organization can group people. Might as well keep the groups together.

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This link helped me learn that there are actually different types of functional structures within organizations. They can be changed and manipulated easily.

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Centralized, decentralized, linear, horizontal, traditional, matrix... there are several organizational structure examples, and each one is better suited to a particular business type and process model.

In this post, we'll analyze and exemplify 5 of them, so you can understand their advantages and disadvantages, and choose which one to employ in your organization.

See also: Market Acknowledged Organizational Change Management Models

Organizational structure examples

Among the types of organizational structures, 3 of them stand out, with the first one presenting 3 subtypes.

We'll discuss their characteristics and exemplify some business areas that best fit these different organizational structure styles.

1- Line, functional and line-and-staff structures

Organizational structure example - Line

The traditional line structure is organized in such a way that a president or CEO (Chief Executive Officer) is at the top. Then there are the directors or VPs (Vice-Presidents) of specific areas, followed by managers, and so on, until the operational personnel. This structure can be seen below:

It's a very rigid structure, with little information exchange, typical of bureaucratic companies in which there is little collaboration.

Nowadays it's unusual, but in the past it was practiced in military, religious, and even academic organizations. In this way, one area doesn't interfere with the work of another, and the staff only obeys the 'orders' of the immediate superior.

Organizational structure example - Functional

The functional organizational structure derives from the line structure; the difference is that employees in an area need to report to all the directors.

For instance, an employee from the finance department may be called upon by the HR (Human Resource) manager to handle a matter related to this area. The IT (Information Technology) manager may do the same, and so forth.

It's a way to avoid centralization and excessive specialization in tasks in your area.

Here's what this hierarchy looks like:

Today this is the most used structure in many companies and organizations, but this doesn't mean it's the best one.

Everything will depend on the relationship between managers and, especially, on the appropriate use of IT to aid in internal communication.

This organizational structure example is suitable for small companies, such as manufacturing, hotels, medium-sized car repair shops, medical clinics, or other types of business where informal structures allow functional control over employees without generating conflicts between managers.

Organizational structure example - Line-and-staff

It's similar to the line structure, except that in this case the staff advises, gives opinion, makes reports, authorizes and supports the organization.

Organizational structure examples of this type include insurance companies, engineering firms, law firms, regulatory agencies, etc. In other words, organizations that need isolated technical advice to assist employees who handle or manage the day-to-day operations on the front line.

2- Project-based structure

Highly dynamic and creative companies - such as software developers, architecture firms, special industrial equipment installation projects and event organization companies - typically use this structure. It's characterized by a series of specialized employees, ready to compose a work team as needed.

In each project, these collaborators report to a different leader. Once they complete the project, a manager assigns them a new project and leader.

3- Matrix structures

This structure is widely used both by companies that are constantly launching new products and marketing campaigns, for example, and by companies that have project-based structures, but also believe that functional supervision is necessary and important.

An example of a business area that would benefit from this type of organizational hierarchy is consultancy for ERP Software installation.

Each project must occur independently. However, it's important to have a senior manager of each department (finance, operations, HR, marketing, etc.) to check if everything is in accordance with the company's policies and level of services.

Check out: The 10 Pitfalls of Email Usage to Track Tasks

Knowing the best organizational structure example for your company is crucial, as well as modeling and automating your processes.

Read also: How To Create An Organizational Chart For Your Small Business

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Organizational Structures: But which to use?

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Centralized, decentralized, linear, horizontal, traditional, matrix... there are several organizational structure examples, and each one is better suited to a particular business type and process model . In this post, we'll analyze and exemplify 5 of them, so you can understand their advantages and disadvantages, and choose which one to employ in your organization.

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This page really helped lay out how big functional structures could be. I like functional structures and think that a lot of companies in the US use this.

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Functional Structure

An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing.

Learning Objectives

Explain the functional structure within the larger context of organizational structures in general

Key Takeaways

Key Points

A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.

Functional departmentalization arguably allows for greater operational efficiency because employees with shared skills and knowledge are grouped together by function.

A disadvantage of this type of structure is that the different functional groups may not communicate with one another, potentially decreasing flexibility and innovation. A recent trend aimed at combating this disadvantage is the use of teams that cross traditional departmental lines.

Key Terms

silo: In business, a unit or department within which communication and collaboration occurs vertically, with limited cooperation outside the unit.

departmentalization: The organization of something into groups according to function, geographic location, etc.

Overview of the Functional Structure

An organization can be arranged according to a variety of structures, which determine how the organization will operate and perform. In a functional structure, a common configuration, an organization is divided into smaller groups by areas of specialty (such as IT, finance, operations, and marketing). Some refer to these functional areas as " silos "-entities that are vertical and disconnected from each other. Correspondingly, the company's top management team typically consists of several functional heads (such as the chief financial officer and the chief operating officer). Communication generally occurs within each functional department and is transmitted across departments through the department heads.

Advantages of a Functional Structure

Functional departments arguably permit greater operational efficiency because employees with shared skills and knowledge are grouped together by functions performed. Each group of specialists can therefore operate independently with management acting as the point of cross-communication between functional areas. This arrangement allows for increased specialization.

Disadvantages of a Functional Structure

A disadvantage of this structure is that the different functional groups may not communicate with one another, potentially decreasing flexibility and innovation. Functional structures may also be susceptible to tunnel vision, with each function perceiving the organization only from within the frame of its own operation. Recent trends that aim to combat these disadvantages include the use of teams that cross traditional departmental lines and the promotion of cross-functional communication.

Functional structures appear in a variety of organizations across many industries. They may be most effective within large corporations that produce relatively homogeneous goods. Smaller companies that require more adaptability and creativity may feel confined by the communicative and creative silos functional structures tend to produce.

Matrix Structure

The matrix structure is a type of organizational structure in which individuals are grouped via two operational frames.

Learning Objectives

Illustrate the way two different operational perspectives can be crossed in a matrix structure to organize a company

Key Takeaways

Key Points

The matrix structure is a type of organizational structure in which individuals are grouped simultaneously by two different operational perspectives.

Matrix structures are inherently complex and versatile, making them more appropriate for large companies operating across different industries or geographic regions.

Proponents suggest that matrix management is more dynamic than functional management in that it allows team members to share information more readily across task boundaries; it also allows for specialization that can increase depth of knowledge.

A disadvantage of the matrix structure is the increased complexity in the chain of command, which can lead to a higher manager-to-worker ratio and contribute to conflicting loyalties among employees.

Key Terms

Overview of the Matrix Structure

Organizations can be structured in various ways, and the structure of an organization determines how it operates and performs. The matrix structure is a type of organizational structure in which individuals are grouped by two different operational perspectives simultaneously; this structure has both advantages and disadvantages but is generally best employed by companies large enough to justify the increased complexity.

In matrix management, the organization is grouped by any two perspectives the company deems most appropriate. Common organizational perspectives include function and product, function and region, or region and product. In an organization grouped by function and product, for example, each product line will have management that corresponds to each function. If the organization has three functions and three products, the matrix structure will have nine ([latex]3 \times 3[/latex]) potential managerial interactions. This example illustrates how inherently complex matrix structures are in comparison to other, more linear structures.

Advantages of a Matrix Structure

Proponents of matrix management suggest that this structure allows team members to share information more readily across task boundaries, countering the "silo" critique of functional management. Matrix structures also allow for specialization that can both increase depth of knowledge and assign individuals according to project needs.

Disadvantages of a Matrix Structure

A disadvantage of the matrix structure is the increased complexity in the chain of command when employees are assigned to both functional and project managers. This increase in complexity can result in a higher manager-to-worker ratio, which can in turn increase costs or lead to conflicting employee loyalties. It can also create a gridlock in decision making if a manager on one end of the matrix disagrees with another manager. Blurred authority in a matrix structure can result in reduced agility in decision making and conflict resolution.

Matrix structures should generally only be used when the operational complexity of the organization demands it. A company that operates in various regions with various products may require interaction between product development teams and geographic marketing specialists-suggesting a matrix may be applicable. Generally speaking, larger companies with a need for a great deal of cross-departmental communication benefit most from this model.

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An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing. Explain the functional structure within the larger context of organizational structures in general Key Points A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.

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I love this image. I always try to play the devils advocate in many situations. Love seeing both sides to every story. Theres always many ways to look at things especially in decision making!

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This image helped me write my assignment. It really made me question each category and brainstorm.

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This is a very successful company that has a huge impact on my family. I am a mother of two and its awesome to learn how Gerber used a decision tree to help become successful. This article is from 2010 but it shows how far they have come since then.

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Graziadio Business Review | Graziadio School of Business and Management | Pepperdine University

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Management invariably encounters situations in which uncomfortable decisions must be made. In some cases, the difficulty may be that, although certain alternative choices are clear, the consequences of these choices are not readily apparent. One possible tool for a manager in such a situation is decision tree analysis.

A decision tree is a graphical diagram consisting of nodes and branches. The nodes are of two types. The first is a rectangle that represents the decision to be made. The branches emanating from decision nodes are the alternative choices with which the manager is faced. One and only one alternative can be implemented. The second type of node is a circle. Circles represent chance nodes. That is, the alternatives emanating from chance nodes have some element of uncertainty as to whether or not they will occur. The primary benefit of a decision tree is that it provides a visual representation of the choices facing the manager.

Analytic Considerations

The first task of the manager is to identify the decision that needs to be made based upon a given situation. Next, the manager must think of all the possible alternative actions that could be implemented which would "solve" the problem. These alternatives are connected to the decision node as straight lines emanating from the node. The next step is to identify all the possible consequences that could occur as a result of an alternative being implemented. This process is accomplished for each and every alternative action identified in the previous step. Since these consequences have some element of uncertainty as to whether or not they will occur, the manager needs some way in which to evaluate the likelihood that they will (may) occur. The end goal is to obtain probabilities as to the likelihood of each consequence occurring. The best process to obtain these probabilities is to use past experience of similar outcomes. But, often there is no past experience of similar outcomes available to the manager. In these cases, the best tool is to utilize the collective wisdom of experts as to how likely it is that the particular consequence will occur in the future. Using an appropriate consensus building technique, estimates from a panel of experts can be combined or averaged to create a probability of the likelihood of the occurrence of each and every consequence. The only requirement is that the sum of the probabilities of the set of consequences emanating from a chance node must equal one.

The next step is to evaluate the end result of each possible alternative in concert with the consequences identified for each alternative. This step results in a monetary figure that would be obtained if this course of action were implemented. This step is accomplished for each possible alternative. Finally, the entire tree is evaluated by employing a technique known as mathematical expectation in order to select the most beneficial alternative.

Product Planning at Gerber

Gerber Products, Inc., the well-known baby products company, recently used decision tree analysis in deciding whether to continue using the plastic known as poly-vinyl chloride or, more commonly, PVC. The situation involved a number of organizations including the environmental group Greenpeace, the U.S. Consumer Products Safety Commission, the toy and plastics industries, and the general public.

PVC is a composite plastic material used in numerous household, commercial, and medical products including food storage containers, toys, and medical tubing. To make PVC soft and pliable, a chemical plasticizer known as "phthalates" is added to soften the plastic. In the latter half of 1998, Greenpeace announced that it had conducted scientific testing on phthalates and found them to be carcinogenic in lab rats. Further, Greenpeace claimed that the chemical leeches from the plastic over time and voiced particular concern with, "products that were aimed at small children and used to suck on or chew on." Although phthalates have been used in plastic for over 30 years, and there are no known cases of phthalates causing health problems, Greenpeace's press release was strategically timed to coincide with the Christmas toy season, thereby guaranteeing maximum media coverage. As expected, it was immediately picked up by the television networks and, in fact, the ABC show 20/20 did an entire segment on the possible health risks of phthalates.

The problem grew worse for Gerber when the media focused specifically on products made for oral use by children. Gerber, the largest producer of nipples, pacifiers, and feeding products in the U.S., produced some 75 different products containing phthalates and was under considerable pressure to respond publicly to the investigation.

Decisions

Gerber management had to evaluate all of the current information, weigh the consequences of each action, and proceed on the most prudent course to insure as limited an interruption in business as possible. Gerber knew that a vast body of scientific evidence indicates that phthalates are completely safe. However, once the Greenpeace announcement was publicized, the Consumer Product Safety Commission was spurred to issue a press release expressing new doubts. As the focus gradually fell on items children put in their mouths, and large toy manufacturers like Mattel and Disney began to distance themselves from phthalates, the spotlight of the CPSC fell squarely on Gerber. A month before Christmas, the CPSC informed Gerber they would issue a press release advising parents of the potential dangers of phthalates, and Gerber would be named as one of the companies involved. This is the point at which Gerber implemented a decision tree.

Gerber basically faced two choices, neither of which was particularly beneficial. The firm could be reactive, wait for the announcement, and gauge consumer response before deciding on a course of action, or it could be proactive and aggressively pursue resolution of the problem regardless of the public's response to the report. The CSPC report suggested the agency would either issue a recall of all products containing phthalates (shown on the decision tree as the unfavorable response), or they would issue a report merely expressing concern in which case the public response would be minimal (shown on the decision tree as favorable).

Gerber projected eight possible outcomes on its decision tree. If the firm reacted proactively by discontinuing use of all phthalates, and the CSPC report simply issued a warning, Gerber predicted an 80 percent chance that the public would react favorably to Gerber's responsiveness causing sales to increase over competitors who reacted more slowly. A potential nationwide revenue increase of $l million was entered into the decision tree. Given a proactive response and a favorable CSPC report, Gerber also recorded a 20 percent chance that sales would decline by $1 million due to the sensationalistic nature of the press coverage.

If the CSPC report is negative and a recall is issued, Gerber predicted 25 percent likelihood that it could preserve current sales through a proactive response. On the other hand, the firm placed a 75 percent probability that a recall would hurt sales by $1.25 million.

Four more alternatives were predicted in the event that Gerber waited for the CSPC report before taking action. With a favorable report and a delayed response, there was thought to be a 25 percent chance that sales would remain flat, along with a 75 percent chance that sales would decline by $2 million.

The worst case scenario is if Gerber remains passive and the CSPC report calls for a recall. In that case, Gerber optimistically predicted a 20 percent probability that it could still increase sales by taking advantage of companies who were less prepared for the report and actually gain approximately $.5 million. However, it was considered an 80 percent probability that significant volume would be lost.

Using a decision tree like the one shown at the end of this article, Gerber concluded that its best option was to be proactive and initiate its own solutions without waiting for the CPSC report. Then, Gerber hoped for a favorable report that would provide a strategic advantage over competitors who opted for a different path.

Some Branches May be Missing From the Tree

As this example shows, decision trees enable managers to use available data to conceptualize and articulate possible scenarios of future events even though important pieces of information may still be missing.

Unfortunately, some important branches of the tree, such as ethical considerations, may be missing since they are not easily converted into financial terms. But the ability to predict economic outcomes in this way can still play a vital role in management decision-making.

Editor's Note

Subsequent to these actions by Gerber, phthalates were approved for use in toys and other products by the U.S. Consumer Product Safety Commission, the U.S. Food & Drug Administration, and the American Council on Science and Health. An ACSH panel of scientists and physicians headed by former U.S. Surgeon General Dr. C. Everett Loop took the extra step of underscoring the benefits associated with the use of the phthalate DEHP in medical applications because of its demonstrated reliability.
See the Gerber Decision Tree and Analysis here.

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How Gerber Used a Decision Tree in Strategic Decision-Making - A Peer-Reviewed Academic Articles | GBR

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Management invariably encounters situations in which uncomfortable decisions must be made. In some cases, the difficulty may be that, although certain alternative choices are clear, the consequences of these choices are not readily apparent. One possible tool for a manager in such a situation is decision tree analysis.

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I was looking up what companies use the SWOT analysis within their companies and of course, my favorite company, AMAZON uses this method! They are such a successful company. I enjoy the fact that every single assignment I have done and I have chosen a certain scenario to write about and then i figure out that Amazon incorporates each one of them.

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For years, businesses have leaned on the tried-and-true method of SWOT to help shape their business strategy and marketing execution. SWOT-Strengths, Weakness, Opportunities, and Threats-assists in shaping internal and external parts of a business.

Strengths and weaknesses are internal analyses of your businesses, and opportunities and threats are external factors that can positively or negatively affect your business. At a high level, here's a breakdown of each part of SWOT:

How SaaS company PactSafe used SWOT analysis to position itself against competitors

SWOT is its most successful when used honestly. Try to be as transparent as possible so your business can achieve its highest results. When diving into weaknesses, be clear in identifying where the lacking areas lie. If you're a new SaaS company outlining your product's strengths and weaknesses, do not simply list the product feature that's not your highest-value point, state why it's not:

Is it because your customer doesn't find it useful? Why is this?

Is the production adoption of that feature low?

Does that feature prove to not be a decision-making feature in deal-closing?

Where does that product feature sit on your ideal customer's list of needs?

SaaS company PactSafe dove into the e-signature market with its modern signing methods, including click-to-sign (single click to accept a contract) and text-to-sign technology (sign by simply replying, "Agree" over text.) With giants like DocuSign on the "competitor" side, PactSafe Chief Product Officer Eric Prugh shares that they focus on product features that:

Provide untapped, greenfield opportunities;

Uncover a big market that is seemingly unserved;

Are in-line with their perceived view of where things were going;

Their major competitors don't have;

Enhance their biggest weakness: Going up against enterprises like DocuSign in deals.

PactSafe uses this analysis to drive its product roadmap, which includes building a Legal Center where its customers can manage all of their contracts-something DocuSign doesn't provide. In building their Legal Center, PactSafe prioritized a gap seen within its customer base: A single, dedicated portal to manage old and new contracts, revisions, acceptances, and more.

How often SWOT should be performed: Even tech giants like Amazon use SWOT

As an industry-wide benchmark, startups should perform SWOT every two or three months, established businesses should perform this practice every six months. As a business grows and scales, there will be natural evolutions in your product and customer needs. Adjusting messaging and your product roadmap is a necessity that comes with that growth-especially when it comes to the tech industry. Prugh shares that his team performs some aspect of SWOT on a quarterly basis to keep a pulse on how PactSafe's products are measuring up against competitors and to see if the needs of their customers have shifted or evolved.

A classic example of SWOT analysis driving major pivots in product and messaging is tech giant Amazon. What started as an online bookstore in 1994 has turned into a billion-dollar business. No one could have predicted that in 2018 Amazon would have purchased land for its massive fleet of cargo jets, but CEO Jeff Bezos' ability to adapt to the evolution of e-commerce is what put Amazon as the leading business in its industry.

Amazon acquired Whole Foods in 2017 for $13.7 billion, and this opened an entirely new market for the tech giant to dominate. At a high-level, here's an example of a SWOT analysis of the acquisition:

Strength: Distribution and having a real brick and mortar presence; ability to scale groceries with their leverage in supply chain;

Weakness: Margin of grocery business;

Opportunity: Capture market share in grocery and integrate Amazon Prime memberships to drive that market share up even further;

Threat: Wal-mart, inexperience in the brick and mortar grocery business, and other grocery chains being proactive in taking next steps to compete with Amazon.

A year since the acquisition, Amazon has invested heavily in its strengths, the main one being data. Amazon has taken the plethora of data it obtained from Whole Foods, mapping out a shopper's buying journey and putting a science behind scaling its loyal customer base.

Take a look at the below infographic outlining the incredible product and revenue growth from Amazon:

Who should be involved in SWOT

While executive insight is important when performing SWOT, it's crucial to involve different leaders in your company, so you have the perspective and influence of all aspects of your business. In an article this year from Business News Daily, Founder and CEO of Paradigm Computer Consulting Shawn Walsh "said his management team conducts a quarterly SWOT analysis together."

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These Tech Companies used SWOT Analysis to Come out on Top of Competitors

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For years, businesses have leaned on the tried-and-true method of SWOT to help shape their business strategy and marketing execution. SWOT-Strengths, Weakness, Opportunities, and Threats-assists in shaping internal and external parts of a business. Strengths and weaknesses are internal analyses of your businesses, and opportunities and threats are external factors that can positively or negatively affect your business.

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I found this website very helpful in reading about world news regarding the surfing industry. It shows news all around the world on the surfing industry. It also talks about the economic, cultural and political aspects of surfing all around the world.

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Stay up to date on the latest watersports and beach life style industry news from Surf Expo.

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This study shows how Quiksilver used the standardization strategy to grow their business globally. Billabong also used this strategy.

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In 1969, Quiksilver took $2,000 and made their first wetsuit. By 1984, they were in South Africa, Brazil and Japan. It is now a 1 billon dollar company and is a global organization.

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In 1969, two Torquay locals, Alan Green and John Law, turned to making boardshorts in their home garage based on what they saw as a market opportunity. Authenticity, innovation, pride, confidence and a belief in limitless potential have been the foundations in Quiksilver becoming the largest and most prestigious apparel company in the action outdoor sports industry

About the Company

The Quiksilver logo, a cresting wave and snow-capped mountain, has become a marque of excellence. Since 1969, Quiksilver has maintained its commitment to quality and performance, and taken this message around the world. Born on the beach, Quiksilver's core concept of fashion with function has now been embraced by all who enjoy active outdoor lifestyles.

The cresting wave and snow capped mountain logo symbolises excellence and authenticity. The logo was inspired by a famous Japanese woodcut depicting a typhoon wave and Mt Fuji.

Where did the name "Quiksilver" come from?

Alan's wife Barbara was reading a novel when she came across the word 'quicksilver' describing something as; elusive, liquid, mercurial, changing readily - and thought that sounded similar to what Alan was trying to do with the company.

The name Quiksilver is derived from the ancient alchemists' term for the turning of base metals into gold. The goal of the company was the turning of good fabric into extra ordinary products. It was thought to be an appropriate name for the company's products.

Quiksilver Today

Boardriders, Inc. (NYSE:ZQK) is the world's leading outdoor sports lifestyle company, designing, producing and distributing a diversified mix of branded apparel, wintersports and golf equipment, footwear, accessories and related products.

The Company's apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage, while its wintersports and golf brands symbolise a long-standing commitment to technical expertise and competitive success on the mountains and on the links.

On top of sponsoring some of the world's top outdoor sports athletes, the company also organises and sponsors numerous contests and events, ranging from premiere international events to small community-based efforts that its riders and dealers may be involved with.

Quiksilver has become far more than just a fashion apparel company. It is a company with deep roots in the history of the demanding outdoor sports lifestyle.

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In 1969, two Torquay locals, Alan Green and John Law, turned to making boardshorts in their home garage based on what they saw as a market opportunity. Authenticity, innovation, pride, confidence and a belief in limitless potential have been the foundations in Quiksilver becoming the largest and most prestigious apparel company in the action outdoor sports industry The Quiksilver logo, a cresting wave and snow-capped mountain, has become a marque of excellence.

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I came across an article talking about how Apple was using a supplier to get Cobalt and they supplier was using children as young as 7 years old were working in these mines. Apple faced a lot of criticism over child labor. Although I personally do not agree with children working, in other countries this is the normal thing that happens. this is how people survive. Its not right but that's just how it is.

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Apple Faces Child Labor Scrutiny With Mine Deal

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Human rights campaigners tell Newsweek a new mining deal could present Apple with serious ethical challenges.

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Amazon also just opened up wind and solar farms! I have never seen a company so interested in using 100% renewable energy. Their ethics are incredible!

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Amazon is committed to using 100% renewable energy across our global infrastructure. In April, we announced our latest milestone - three new wind farms in Ireland, Sweden, and the United States. In 2018, AWS exceeded 50% renewable energy usage, and these three projects will deliver wind-generated energy that will total over 229 megawatts (MW) of power, with expected generation of over 670,000 megawatt hours (MWh) of renewable energy annually.

Once complete, these projects, combined with AWS's previous nine renewable energy projects, are expected to generate more than 2,700,000 MWh of renewable energy annually - equivalent to the annual electricity consumption of over 262,000 US homes, which is approximately the size of the city of Nashville, Tennessee.

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Amazon is committed to using 100% renewable energy across our global infrastructure. In April, we announced our latest milestone - three new wind farms in Ireland, Sweden, and the United States. In 2018, AWS exceeded 50% renewable energy usage, and these three projects will deliver wind-generated...

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In this module I learned a lot about corporate social responsibility. I enjoy knowing that Amazon is such a eco friendly company. Heres a link to their webpage where they talk how they installed 50 solar panels!

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Playing a significant role in helping to reduce the sources of human-induced climate change is an important commitment for Amazon, and major investments in renewable energy is a critical step to address our carbon footprint globally. With investments in wind and solar, we are diversifying our energy portfolio, reducing our reliance on fossil fuels, and delivering on our commitment to use 100% renewable energy across Amazon's global operations and infrastructure.

It's why we are proud to share that we've completed our 2017 goal to install 50 solar rooftops systems on fulfillment and sort centers 18-months early. Globally, Amazon has 32 rooftop systems in the US, 12 in the EU, and seven in India, totaling more than 98 MW of installed capacity. Depending on the specific project, time of year and other factors, a rooftop solar system can generate as much as 80 percent of a single fulfillment facility's annual energy needs. These 50 solar projects continue to supply energy to our operations network to achieve Shipment Zero and make all Amazon shipments net zero carbon, with 50% of all shipments net zero by 2030.

And earlier today, the Solar Energy Industries Association's (SEIA) 2018 Solar Means Business Report ranked Amazon #1 in the U.S. for amount of corporate on-site solar installed in 2018, and #2 for total amount of solar installed to date. And in just the last three-years alone, Amazon has installed more solar capacity in the U.S. than any corporation. In total, Amazon's solar projects in the U.S. have offset the CO2 equivalent of more than 200 million miles of truck deliveries.

In addition to solar, we continue to invest in renewable energy projects around the globe. In total, Amazon has 61 operating solar and wind projects that are expected to generate over 1,044 MW and deliver over 3.1 million MWh of energy annually. We are putting our scale and inventive culture to work on sustainability not only because it is good for the environment, but also for the customer. It's a win-win for the environment and our customers.

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Playing a significant role in helping to reduce the sources of human-induced climate change is an important commitment for Amazon, and major investments in renewable energy is a critical step to address our carbon footprint globally.

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In light of todays news over the feud between whose chicken sandwich is better, I think that Popeyes should have planned their reveal a lot better so their employees wouldn't want to quit their job in the middle of it! This is an example of poor Top and Middle management. Popeyes came out with a new chicken sandwich, which in turn started a battle on social media between Popeyes and Chick-fil-A. Maybe top and middle management could have thought about how social media could affect them before the release. I don't think that was a considering factor when their goals were set and planning, organizing and leading came into affect.

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‘I was working like a slave’: Exhausted Popeyes employees describe a harrowing situation amid chicken-sandwich chaos, including working 60-hour weeks and shifts with no breaks

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Employees at Popeyes are working extra hours — some over 60 a week — to handle the hype, and some are fielding threats from angry, hungry customers.

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The perfect cartoon representation of horizontal management versus vertical management. I believe Vertical management is better suited to create a very successful business or organization.

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Robert L Katz three critical skill sets for successful management professionals. This visual will help me remember how they integrate with top, middle and first line managers!

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Today, I learned all about Vertical Management. I started researching it on my own and learned that one of my favorite companies uses vertical integration within their company. Amazon! I order from this company at least twice a week. This just goes to show that vertical management and vertical integration within organizations is truly the go to, to be successful!

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Jeff Bezos, The owner of Amazon has become the world's richest person with a net worth of over $100 billion. This can be attributed to the extremely fast growth in the share value of Amazon. One of the premier reasons behind this fast growth is vertical integration. Amazon has been taking vertical integration to a whole new level. The operational model of Amazon is to do vertical integration using its scale. First Amazon starts using the services itself. Over a period of time, Amazon builds operational efficiencies in these services. Once these services have a competitive advantage over similar other services, Amazon offers them to other corporations and users. This model has been wildly successful and has been instrumental in making Amazon the giant that it is today.

In this article, we will have a closer look at some of the successful vertical integration forays that Amazon has got into.

Warehouses

When Amazon started its business, it wanted to be an asset-light company. Bezos was of the opinion that he would simply pass on the orders from the customers to the publishers. However, he soon realized that the order fulfillment and customer service was weak. As a result, Amazon had to create its own warehouses. Jeff Bezos has invested a lot of time and money in making Amazon's warehouses the most efficient ones. Today, these warehouses are largely run by using technology like robotics process automation. These warehouses offer the lowest cost amongst their competitors. Once Amazon was sure that it could take on competition, it started offering the service to other companies. Since then, Amazon's warehousing, as well as picking and packing services, have been a major hit amongst the smaller corporations who are trying to benefit from the economies of scale that Amazon has.

Amazon Web Services

Amazon has also developed one of the best cloud computing ecosystems. Amazon's business model has traditionally relied on the use of computing technology to gain better insights into customer behavior. As a result, Amazon acquired a lot of storage space, databases and created other applications for its own use. However, these applications were built in such a way that they could be offered to other smaller businesses as well. Small e-commerce businesses do not have to reinvent the wheel when they start their business. They can use the AWS platform and build their applications. They do not have to pay for setting up the infrastructure which can be expensive. Given the fact that startups are usually short of cash this arrangement works out perfectly for all the parties involved.

This was the beginning of Amazon web services which is one of the most successful cloud-based platforms across the world. Amazon not only achieved technical dominance in its field but also used the revenues from other services to fund this endeavor.

Delivery Services

Amazon has recently announced its intention to launch its delivery business. This has sent the shares of companies like UPS and FedEx into a tizzy. After all, Amazon is the master of innovation. It has been working on technologies like drone deliveries to reduce the cost of its operations. It is also known to be experimenting with other technologies such as in-house deliveries. On the other hand, companies like UPS have massive unions. The workers there are opposed to any kind of technological advancement. They believe that the increase in operational efficiency will lead to job loss and redundancy.

Once again, Amazon has the strength to give its logistics business the initial push. Once this business becomes more efficient than others, Amazon is likely to offer delivery services to third-party customers. This is of vital importance because in the logistics business volume is everything. Volumes build efficiencies and these efficiencies help Amazon reduce the cost of its operations and provide better services to its customers.

Banking Services

Amazon recently launched its debit cards in countries like Mexico. This is because the website is based on an e-commerce model. Hence, transactions have to be routed electronically. However, most people in Mexico do not have debit or credit cards to carry on these transactions. In order to tap these customers, Amazon has announced the launch of a debit card which can be recharged from local stores. Customers can use it to make purchases at certain brick and mortar stores. They can also withdraw cash from ATM's, if they want to do so.

Once again, Amazon is not relying on banks or other companies to build the infrastructure. It is going the additional mile to enable customers in developing countries to make online transactions. Amazon is not only building the requisite infrastructure but is also playing an instrumental role in changing the consumer's mindset. Once these customers start transacting online, Amazon will charge other companies to use the service.

To sum it up, Amazon has become the master of vertical integration for online companies. When internet businesses started thriving, there was considerable ambiguity as to whether they will be able to achieve vertical integration. Amazon has certainly shown the way. It is on the way to becoming one of the most vertically integrated companies in the world.

Authorship/Referencing - About the Author(s)

The article is Written By "Prachi Juneja" and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.

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This article explains Amazon's strategy of vertical integration. It also explains how Amazon has been able to get into various unrelated business and be successful in all of them. The article describes how Amazon let's other companies use its infrastructure and services for a fee.