Ethics

Ethics

It is challenging for leaders to make ethical choices. Nonetheless, such managers experiencing the dilemma may apply various decision-making approaches. Moral absolutism constitutes the fundamental and universal ethical approach. The concept represents a firm conviction that an act cannot be right for anybody anywhere if it is not justifiable to somebody. While the idea is usable in cross-cultural situations, business leaders can apply the approach especially if a subject operates beyond the culturally acceptable standards.

The decision-making process is simple due to the universal plan. It predetermines the ethical choice hence eliminating the need for debates and lengthy reflection. Besides, appropriate decisions are compulsory or highly preferable even in the United States because of global regulations and national laws. According to Wilkens (2011), the precise denotation of “wrong” and “right” eases the oversight process. Therefore, the workers, stakeholders, and business associates can enjoy same standards due to the universal approach.

According to the critics of ethics, a striking similarity exists between ethical imperialism and the global leadership concept hence posing a challenge particularly to the cross-cultural engagements. No businessperson or a leader wishes that the international community or people at home should regard him as possessing a rigid ethical stance. In case a leader has such a stance, it is highly likely that his subjects will see him as discriminatory to the convictions of others.

For instance, a chief executive officer may be contemplating how to form an alliance with an overseas business entity that is against women in power. An organization such as this may have a policy that limits the women’s ability to rise the ranks, and the CEO may face an ethical dilemma on collaborating with this corporation. Further, it is imperative for a multinational to uphold environmental standards and policies, especially if it operates in a third-world nation with lax pollution standard. Lastly, a business leader may consider if a worker refrains from participating in debates because of his culture or has an introverted personality. Alternatively, the employee may just be uncooperative.

I agree that the alternative to the universal approach is cultural relativism. According to cultural relativism, the ethics in a given environment are variable depending on the values and norms. The concept also respects the validity and variance distinct viewpoints in global cultural settings. Nonetheless, the individuals subscribing to the cultural relativism may pinpoint the applicability of ethical standards beyond the boundaries. The examples of workplace ethical standards are fair pay, employee safety, and rights. I recommend that the leaders should not use cultural relativism as an excuse of enforcing poor working conditions while relaxing the environmental policies. Instead, they should embrace the unified social contracts theory that not only ensures respects for local cultures but also guarantees shared ethics.

Regarding the ethical egoism, it is clear that some moral agents can pursue normative values based on their self-interests. However, this principle contrasts that of psychological egoism where only self-interest is the influential factor for ethical responsibility. Researchers consider rational self-interest as ethical if the consequences of a person’s actions are beneficial to the doer. In the case of ethical egoism, the moral agents may not necessarily have an obligation of assisting others. At the same time, the moral agents should not harm the others’ wellbeing and interests.

The Understanding of Ethic

            Cantrell & Lucas (2007) reveal that ethical values and principles are crucial in decision-making and other engagement in a corporate setting. Indeed, ethics serves as a guide to the corporate policies and laws since it influences the leader’s productivity and reputation. The corporate leaders applying leadership principles affect not only the subject's loyalty but also their morale. For instance, workers regard their leaders as role models hence their engagement can shape the workforce’s discipline and acceptable behavior. The employees will work towards matching the leader’s ethical standards. Over time, an organizational culture emerges, especially if the managers exhibit a moral behavior they would like to observe in their juniors.

            People approach their lives with ethical and moral framework either subconsciously or knowingly. In most cases, the individuals cultivate this structure early in life because they take their parent’s worldview. Other sources of moral justification are friends and religion. Still, it is common for the ethical stances to change over the years as people grow up. Some may opt for a conventional life while other become liberal. In this consideration, it is true that the leaders do not lose their moral frameworks once they assume the role in the society or an organization. During their tenure, they shape up the corporate operations depending on their ethical and moral frameworks.

            In a business setting, the ethics can be descriptive or normative. In the case of normative ethics, the leader ought to understand the employee behavior specifically if it relates to their social upbringing or culture. The leader may be a conservative in financial expenditures because his parents encouraged saving money. Nonetheless, the leader must understand that their personal beliefs have a lasting impact on their managerial decisions.

On the other hand, the descriptive ethics entails the incorporation of best practices in the societal or corporate procedures and policies. In a culturally diverse country such as the United States, an organization can have customers or employees that observe specific holidays and traditions. Therefore, it is the business leader’s mandate to consider such behaviors during policymaking. A failure to be cognizant of the variable ethics can result in a poor performance.

As the leader instills ethical framework in the society or organization, he must do so while appreciating the viewpoints of others. Mutual respect is critical to a working relationship. In my workplace, I think about the ways that my ethical principle connects me with my workmates and the consumers. Likewise, the business owner must consider if his moral standing increases the bottom line or profitability. Other factors to consider are the losses from the incorporation of such principles (Cantrell & Lucas, 2007). I also realize that we come from different economic, social, and cultural background hence the need of balancing the institutionalization of ethical principle with concern and respect for other’s welfare.

Core Values

A leader must consider many core values and ethical principles to ensure profitability and cordial working relationship with the stakeholders and consumers. First, he must commit to responsible financial management by eliminating fraudulent and misrepresentative activities. Second, the leadership must respect and treat the customers or co-workers with dignity. Most importantly, the manager should lead the corporation in giving back to the society through various corporate social responsibilities. The CSR engagements such as investments in local learning institutions yield a win-win outcome.

I have core values that are in line with the leadership and workplace ethics. It is hard to be employed if the worker lacks the competency and skills. It is also notable that most organizations focus on profitability. The main ingredients of success are teamwork and workforce motivation, but they are unattainable unless the firm has ethical policies and guidelines. The manager monitors the employees to ensure they comply with such regulations.

The acceptable behavior is specifiable by the organization, especially during the hiring process. The interviewers can even summarize their expectation from the potential employees. In this regard, I always refrain from harassing other using an unprofessional language when holding conversations with colleagues and customers. A failure to adhere to the ethical codes of conduct can result in firing or verbal warnings.

In summary, I execute my job with integrity and honesty because my job entails financial transactions and work management. I also refrain from sneakiness and gossip during practice time thus taking responsibility for my actions. The measures I consider for accountability include timeliness and showing up during the workdays according to the human resource’s schedule. If my engagements go wrong, I maintain professionalism and remain truthful. I also collaborate with others during task execution. In the process, I strengthen my relationship with the customers, supervisors, and peers.  My goal is to set aside personal interests for the attainment of the company’s aims and objectives. Lastly, I am committed to strong work ethic and positivity. My core values dictate my ethical direction because I refer to the corporate policies while observing the attributes of a prominent business leader and mentors keenly.

References

Cantrell, W., & Lucas, J. R. (2007). High-performance ethics: 10 timeless principles for next-generation leadership. Chicago: Tyndale House Publishers, Inc.

Wilkens, S. (2011). Beyond bumper sticker ethics: An introduction to theories of right and wrong. New York: Intervarsity Press.

Chapter 14

Chapter 14

Question 1: Employee Rights

The organizational leadership is increasingly emphasizing on workforce rights due to the rapid development of the sector in just three decades. The government has made a significant leap forward in the employment industry by ensuring diversity and the empowerment of the minority groups. Besides, gender equality is becoming a critical factor, especially in broadening the employee rights’ scope. Further, the improving justice and the role of courts in the United States ensure the protection of workers from wrongful discharge, as was the case in the mid-1900s. Today, the majority of employees are aware of their rights because the government has conducted an extensive knowledge creation program. In this regard, it is imperative for the organization to protect the workers hence avoiding protests which can derail productivity (Gomez-Mejia, Balkin, & Cardy, 2016, p. 168). The firm’s performance hinges on employee satisfaction. Unless the employees are motivated to work, it is hard for the business entity to improve the investment prospects. Investors refrain from conducting business with biased corporations. Surviving in the modern business environment entails improving the internal working conditions. The company can gain a competitive edge through emphasizing on workforce rights. Some of the rights protecting the employees include free speech, ethics, contractual, statutory, and privacy.

Year-on-year, the federal government, has been updating the employee rights protection acts in the United States. The tightening rules leave no room for a violation because an assigned federal agency oversees the activity in its entirety. Therefore, harassments and discrimination cases have fallen sharply in recent years.

Question 2: Employer Rights

In America, the federal and state government grants the employers a right of dismissing or appointing the employees as per the set regulations and procedures. Also, the company ought to anticipate a reasonable performance from the workers. Nonetheless, the government prohibits the managers from sexual harassment, discrimination, vilification, and victimization of the employees. Occasionally, there are conflicts in the work environment because the organization has not clearly defined the duties and rights of both parties. The employers have a right to retain profits and run the business as they please. They receive these entitlements from the owners and stockholders.

The employees should understand and respect the rights and responsibilities of their employers. Some of the Acts outlining the rights of employers include Employment, Bankruptcy, and Equity Pay. The employers’ obligations must balance with the employees’ entitlements. Revealing the business secrets to the rivaling firms is an abomination for the employee. Besides, the employer can sue the employee if his acts jeopardize the corporate reputation (Gomez-Mejia, Balkin, & Cardy, 2016, p. 172). Most importantly, the company expects his workers to execute their tasks to a high standard but within the legal limits. Lastly, the employer can warn or dismiss the employees if they can hardly explain their absenteeism or late arrival to work.

Question 3: Insubordination

The staffer is not guilty of insubordination because of her refusal to admit sick individuals whose treatment at the facility was unnecessary. The employee has a right to disobey the chain of command and orders from their superiors. First, the employee must be aware of corporate policies and procedures besides determining their legality. In case the corporate activities violate the corporate laws, the employee can willingly boycott service in protest. In any case, the employee can successfully sue the firm for conducting unlawful activities or forcing the staff members to follow suit. Secondly, the employee can disobey a direct order if the patient’s safety is questionable. Some of the illegal activities that the organization engages include luring the patients, fraudulent diagnosis, and unnecessary extension f patient’s stay. Therefore, the management is accountable for these inhumane acts and should answer the charges in the court of law.

            I recommend that the patient should carefully document the ongoing illegal acts in the hospital before whistleblowing. The law enforcers demand evidence for accusations. Otherwise, the whistleblower’s efforts will be in vain. Further, she should consider the legitimacy of the accusation. Understanding whistleblowing consequences to the family and career are also important before proceeding with the case (Gomez-Mejia, Balkin, & Cardy, 2016, p.485). Understandably, there is a little or no legal protection for the private-sector employees hence the need for consulting an attorney. In case the organization fires the whistleblower, she must be aware of the ramification of her decision.

Question 4: Benefits of Whistleblowing

            The organization benefits immensely from the whistleblower’s activity. The business owners desire honesty from the staff members. A corrupt manager is an impediment to the corporate progress since he is the leader and role model to other employees. Exposing his despicable acts marks the beginning of an investigative process that can result in his firing. The stakeholders can also extend the crackdown to the manager’s close confidants hence cleansing the firm of the corruption. The move reinstates confidence in the clients. Also, the company will rededicate itself to success and mission. Further, the exposure sets an example to other staff members that they should be transparent and vocal. In the end, the business performance improves due to the newly adopted culture. Reducing or eliminating the whistleblowing fears involves employee empowerment, awareness creation and transparency in service delivery. Besides, the management and HR staff should guarantee the employees of job security and legal protection in case they reveal corrupt activities (489). Lastly, the management should clarify the corporate policies, terms, and conditions so that the potential whistleblowers can distinguish the wrong from right.

Question 5: No-Dating Policy

            The organization can enforce the no-dating policy if the occupation demands utmost dedication and minimum distraction (Gomez-Mejia, Balkin, & Cardy, 2016, p. 480). For instance, the military employees can be susceptible to the ‘no dating’ policy because of the dangers involved, especially in the war-time. The emotions for couple soldiers on the frontline can ride high as each worries about the other’s safety. Relationships are also uncommon in the spy agencies because the workers deal with sensitive intelligence that can cost lives if divulged to the loved ones.

            On the other hand, smoking cigarettes can be abominable in petroleum corporations or those firms dealing with the production of highly flammable products. The schools also prohibit teachers from smoking in front of the students. The government can encourage high-value employees such as nuclear researchers or rocket scientists from engaging in high-risk activities. Contrastingly, the government workers such as military personnel and FBI agency employees, should not support a specific political candidate because their service is to all the citizens rather than a target group from a particular political party. Lastly, the US government prohibits the workers from all sectors from joining sects like Klu Klux Klan that encourage hatred against the black community and other minority groups. A failure to enforce this policy can result in political instability and violence.

References

Gomez-Mejia, L. R., Balkin, D. B., & Cardy, R. L. (2016). Managing Human Resources. Prentice Hall: Englewood Cliffs, NJ: 467-485.

Entrepreneur Internship Assessment

Entrepreneur Internship Assessment

a.     Opportunities

In the United States, it is hard for entrepreneurs to discover the next opportunity to sustain the current business while solidifying the organizational brand. Specifically, the liquor industry is vast and requires large capital to run a start-up. Most of the competitors in this industry have generational businesses, where families have accumulated market experience to survive. Introducing a new business idea like Entrepreneur Internship requires adequate knowledge of the potential clients and strong relationship between the customer and the service provider. Therefore, it is necessary for an entrepreneur to invest in research and development to avoid loss of contact with the market. Besides, it is recommendable that the business owner explores other opportunities to avoid over-reliance on one source of income and to guarantee business stability. At the same time, the generated resources can be re-invested in mainstream operations to boost short and long-term market prospects. Additionally, exploration of other opportunities cushions Entrepreneur Internship brand since the owner channels the income to advertising and product promotion expenditures.

Diversification of Business Operations

Profitability and motivation characterize entrepreneurial culture. However, such goals are unattainable unless the business owner implements ideas for sustaining business growth and revenue generation. The management of Entrepreneur Internship ought to diversify the business operations by investing in other sectors in the industry. Over the years of training Liquor industry staff, the business owner has accumulated fundamental know-how on the industry’s year-long performance, legal requirements, and market expectations. Therefore, this knowledge is applicable in exploring the potentially lucrative businesses for re-investing the income. It is true that some business owners focus on one idea and eventually succeed (Ardichvili et al., 2013). However, there are budgetary constraints that limit success hence a high potential of terminating operations. For a start-up entrepreneur in the beer industry, it is advisable to merge with other businesses and be a crucial contributor of ideas during the inception process rather than single-handedly implementing the idea from the ground up. In this way, the entrepreneur increases the profitability opportunity while limiting business risks.

Angel Investment

The popularity of angel investors has surpassed that of venture capitalists over the past decade. It is a similar situation in the liquor industry. As Entrepreneur Internship grows, the owner should stress less about meeting the periodic operational costs. Instead, he should direct the energy towards improving service delivery and improving customer loyalty. The benefit from angel investment opportunity is two-way. For instance, the business owner can invest his resources in this business portfolio and reap interest after specified period of time or he can borrow resources from the established lenders to meet the rising business needs.

Alternatively, there is an option of crowdfunding that allows budding entrepreneurs to circumvent traditional investors and loan outlets. Crowdfunding involves a direct interaction between the client and business owner, where the latter inquires on the interest rate levels. Satisfied with the deal, the entrepreneur obtains the funds for the production of goods and services and distributing them to the interested parties. Not only does the stategy encourages business innovation but also diversity in the business environment. Moreover, crowdfunding levels out the playing field among the competing organizations. At the same time, it neutralizes the edge resulting from restarting business operations and being well-connected in the beer industry.

Start-up Incubation

Entrepreneurship training can initiate a start-up incubation program to educate the trainees on the importance of opening and operating their own businesses instead of looking for employment. In the industry, the unstable market conditions result in unpredictable business dynamics. Today, most owners of beer manufacture brands are disillusioned due to the weakening overseas demand of America’s light beer. Therefore the sector is no longer viable. However, Entrepreneur Internship has an opportunity to impart new skills to the managers of such firms to ensure business re-engineering and rejuvenation. If this is successful, the clients could introduce new business models to tap into the growing demand for brandy and Vodka. In the end, it is a win-win situation for both parties.

Focusing on Quality

Provision of quality services sets the business on a leadership role. There are numerous benefits and opportunities of being a business leader. First, the firm establishes its brand in the national and international market. Secondly, there is an influx of clients due to improved branding and better service delivery. Third, the workforce adopts an improved business culture and work ethic. Consequently, the organization earns an advantage over its competitors. Most importantly, Entrepreneurship Internship’s management should integrate Information Technology in the business model to exploit multiple business opportunities through online channels. For instance, the social media platforms such as Twitter, Instagram, or Facebook can be used to advertise the service and product to a global audience.

Foreign Market

            As the American beer industry become saturated with liquor firms, it is advisable for Entrepreneur Internship Inc. to venture into emerging markets. China, for instance, presents numerous opportunities considering the size of its population, appetite for alcoholic drinks, and penetration of Western quality products. Therefore, setting up a subsidiary in the country means unobstructed access to a large market.  Still, the firm has to invest heavily in studying the business culture and sourcing for a qualified local workforce but the return on investment will be worth the risk.

b.     The Viability of Business Diversification

            Diversification is a viable option for Entrepreneur Internship due to various reasons. Understandably, the sale and production of alcoholic products in the United is at the strategic crossroad. First, there is a gradual decline of the middle-income earners that often constitute the largest consumer segment. Secondly, the loyal customer base is diversifying their preferences and tastes. Third, the low-alcohol and beer market is completely saturated, leading to a lower number of potential clients that require training services. Lastly, the trend of globalization is rapidly eating into the American liquor market.

Considering these challenges, it is essential for the firm to adopt new strategies for future sustainability. In addition, other business entities in the industry have to strengthen their core alcohol production business and provide other beverages such as mineral water, or non-alcoholic drinks. Alternatively, the organization has an option of providing products and services in a different industry. However, Entrepreneurship Internship should focus on vertically integrated business opportunities or those founded on the industry’s core competencies. Either way, the new business environment will be closer to the parent industry. Of keen to note is that large rivals are spending a significant amount of resources on revamping the beer business to meet the consumer’s changing demands.

If the management prioritizes growth, it is important to carefully plan the future operation for short-term and long-term, success (Stern & Henderson, 2014). Indeed, business growth and diversification have risks but the adoption and successful implementation of the right strategy ensure stability and security. Most importantly, Entrepreneur Internship’s management has to exhaustively assess the current weaknesses, threats, and strengths to determine its readiness and to consider moving to the next stage. Next, the leadership has to build a new growth strategy.

As Entrepreneur Internship moves beyond the start-up phase, its focus adjusts to incorporate new business ideas for a sustained growth. Therefore, the identification of expansion opportunities ensures stable revenue generation. Some of the factors to consider prior to making business moves include market share, turnover, sales, profits and the number of employees. The determination of the aspects that paint an accurate image of the organizational performance depends on its ranking in the industry.

The Entrepreneur Internship performs relatively better compared to the competing firms. Therefore, it is viable to scout for other ways to develop. A failure to consider expansionary measures gives the rivals a chance to grow and eat up the firm’s market share. In the long-run, Entrepreneur Internship’s position weakens. Diversification, therefore, starts with the consolidation of the existing business platform. In addition, the management should ensure smooth operations for the core business even as it spends time and resources on diversification.  A successful diversification does not involve neglecting the existing customer base since it underpins growth. Besides, the loyal customers are the source of transitional cash flow.

Furthermore, the timing is right for diversification. Although the firm’s finances are limited, they are enough for coping with the expansion program. Besides, the systems and resources are in place for continuing the current path while targeting the foreign market. The firm sets aside financial resources for a backup plan in case the new initiative disrupt the performance. In this way, the regular clients will not lose out. Some of the plans that the management reviews prior to the diversification include redefining service provision techniques, the addition of specialized staff, and outsourcing of skills for an effective consolidation.  

The thorough customer and market research for the new services and products allow Entrepreneur Internship to create a clear development strategy. In fact, there are plans to try out the new service for a limited time period (for instance using test marketing and prototypes) prior to commitment. Moreover, a snap business analysis indicates that the supply chain, marketing, and sales operations can successfully cope with the additional demands. Diversification is necessary, especially in an increasingly globalized alcohol industry that forces businesses to consider the provision of new services or looking for new markets. Product and service diversification program is a risky undertaking, given that the organization must embrace unfamiliarity and uncertainty. In fact, the corporation is joining an unchartered territory, hence the importance of having an effective compass.

c.      Global Trends affecting Businesses

Global forces greatly influence the business environment in the US’s liquor industry. Business trends, for example, define how Entrepreneur Internship responds to competition and interact with clients. Some of the latest global trends include religious fundamentalism, technological advancement, healthy living, and emerging markets. Therefore, these forces define the business culture, thus prompting the companies to quickly adapt to the latest dynamics. In addition, globalization introduces fierce competition and organizational uniformity. Consequently, Entrepreneur Internship must devise strategies for enhancing compliance with the prevailing global business trends.

Focus on the Environment

SMEs and governments focus on sustainable business practices through environmentally friendly practices to mitigate climate change. The alcohol industry is not an exception. Entrepreneur Internship should incorporate lessons on the effect of global warming on business practices to ensure that the clients are conversant with the business trend. It is costly for small businesses to go green. Still, the US government has passed a policy that mandates a stamp of approval on all products to indicate green disposal and production. Notably, the administrative overheads rise significantly if the service industry observes strict environmental regulation. As a result, the production cost skyrocket throughout the business community as a net effect of compliance with global environmental regulation.

Information Technology

Technological advances enhance communication on a global scale. Businesses are exploiting this opportunity by reaching out to their potential clients through social media and online product promotion avenues. Other organization in the liquor industry use email and smartphone apps in communicating with their consumer base (Bughin et al., 2013). In particular, the social media advertisement platform is affordable for start-ups. It is an ideal choice for reaching out to a wide base of new customers, especially during business expansion and diversification.

Emerging Markets

The drive towards international trade is one of the globalization aspects. The interlinking businesses conceive a powerful force that constitutes a liquor market not limited by national boundaries or sea.  While globalization ensures international success for most of the US’s start-up firms, a financial crisis in one part of the planet (for instance the United Kingdom) has a direct influence on all the organizational subsidiaries across the planet. In addition, there is a remarkable interconnectedness of global supply chain network in that the production can be affected in Japan should something happen in the United States. In Japan, the traders’ worst fears were confirmed after the Earthquake and Tsunami. The emerging markets compound this issue due to increasing buying power and rising number of beer manufacturers. Eventually, the companies in this sector compete fiercely for raw materials and customers.

Further, the emerging markets are introducing reverse innovations for the developed world. Most tech start-ups in the United States introduce their products (such as iPhones) in the emerging markets first before bringing them to the EU or the US. The main reason is that the cost of labor is low in emerging Asian nations. Consequently, the emerging markets catalyze growth in the alcohol and beer industry.

Religious and Cultural Ideologies

Contradictory religious views and ideologies shape how business entities conduct their affairs. Specifically, the alcohol industry is under constant scrutiny from Christian activists due to underage drinking claims. On the other hand, ideologies compete for resources, time, and people’s attention. Whether cultural, religious or political, people have strong convictions and are ready to defend or maintain them at all costs. In some cases, spiritual groups can use intimidation and force to implement their agenda. For SMEs, transacting in foreign countries like the Middle East, Japan, or India calls for adherence to cultural and ideological views of the natives. The R and D team has to devise effective strategies for operating within such settings. In the Gulf States, there are some regions where alcoholic drinks and pork are decreed as non-halaal because of religion.

Population Growth

 The American population is growing at a slow rate but the global population is booming. There is a population explosion in China, India, Sub-Saharan Africa, and South Korea. It implies that in the near future, there will be a large market for goods and services. Already, China’s 1.3 billion people have an appetite for American products and services.  It is advisable for Entrepreneur Internship to reach consider this growing customer base.

Demographic change is also trending globally. For instance , Han Chinese constitute more than 20% of the global population, whereas in the United States, the Hispanic populace is growing rapidly. Statistics indicate that between 2000 and 2010, their population increased by 21 million to 52 million. This explains the shifting preferences and tastes for alcoholic products.

d.     Impact on Opportunities

As the world move towards minimizing climate change, Entrepreneur Internship has an opportunity to diversify its business structure by incorporating green products and services. For instance, the firm can collaborate with the government in drafting new lessons for their clients. The introduction of a new system of consulting with interns implies that this organization meets the federal government’s requirements. In addition, it earns a competitive advantage since Entrepreneur Internship adds a new service package to address market trends. Diversification to environmental awareness consultation services attracts a new customer base for long-term sustainability.

On the other hand, integration of business activities with the latest technology meets the firm’s goal of providing quality products and services. Through internet connectivity, the organization’s research team utilizes online tools and information to boost business performance. In addition, the social media platforms are usable in strengthening client-business relationship. Technology also ensures automation of most services in the beer production industry thus eliminating the company’s need for the additional workforce. In turn, the business minimizes the operational cost. Then, the management redirects financial resources to improving quality.

Due to the trending demographic changes, the firm should tap into the emerging market experiencing rapid economic growth. As the number of middle-income earners shrinks in the West, it is rising in Asian and Africa. Therefore, such regions are viable business destinations especially for firms experiencing poor performance in the United States. If the organization posts high profits and sales revenue in India or South Korea, the leadership can use the money to revive the local market or conduct extensive research and development.

Globalization of business operations gradually transforms the business landscapes overseas through cultural interactions and exchange of ideas. Over time, religious or ideological misconceptions regarding specific products and services will be eliminated, thus opening up the Middle Easter markets. Moreover, globalization is the source of start-up incubation business opportunity. When technology and accessibility to the internet open up remote places on the globe, aspiring entrepreneurs use electronic gadgets such as smartphones to learn through virtual conferences and video conferencing.

Business challenges trigger opportunities, especially for an innovative entrepreneur. In most cases, customers focused on environmentally-friendly products or services are willing to pay an additional premium for an entrepreneur that is ahead of the pack. For instance, listing the ingredients and local product traits increase its attractiveness than a competitor’s product shipped from Asia or Europe. Excellent entrepreneurs can recognize the specific business trends that are transformable into opportunities.

e. How Business Trends Affect Sustainability

The use of social media for product promotion introduces interactive marketing. It is growing fast due to its global popularity. Most entrepreneurs prefer this platform to costly traditional advertisement techniques in which the client is passive. Social media marketing, blogging, and use of emails encourage participation by the online community. Most interfaces have sections that the user can provide feedbacks. The data is crucial for ideation and product creation.  Given that there is no wrong or right answer, the clients are more likely to favorably choose the services or products. In light of this, it is clear that sustainability, marketing, and social networking are inherently interconnected.

Business sustainability is no longer out of reach even in the liquor industry. For entrepreneurs, greener options are available in the online realms. Green business unleashes more potential than was possible a decade ago. The more the organizations embrace changes and technology, the higher the profitability and chances of business expansion to new destinations. Therefore, the new markets abroad can sustain the failing local operations.

In summary, Entrepreneur Internship cannot survive in the domestic market unless the owner diversifies the operations. The local market is in a gradual decline, hence hurting profits. Partly, the cheap imports of alcoholic drinks and changing consumer taste are to blame for deteriorating performance. Some of the global trends such as demographic shifts and technology also influence Entrepreneur Internship’s annual performance. Exploiting technological advantages earns a competitive edge over rivaling firms both within and outside the United States.

References

Ardichvili, A., Cardozo, R., & Ray, S. (2013). A Theory of Entrepreneurial Opportunity Identification and Development. Journal of Business Venturing, 18(1), 105-123.

Bughin, J., Chui, M., & Manyika, J. (2013). Ten IT-Enabled Business Trends for the Decade Ahead. McKinsey Quarterly, 13(May).

Stern, I., & Henderson, A. D. (2014). Within‐Business Diversification in Technology‐Intensive Industries. Strategic Management Journal, 25(5), 487-505.

Money and the Prices in the Long-Run and Open Economies

Abstract

While the American economic outlook is not robust, it is fairly healthy for a country that was in a major recession less than a decade ago. For years, the economy has had an annual growth rate of less than 2% and is likely to continue this trend. Surprisingly, the unemployment level is natural in spite of irrational exuberances creating busts and booms. One of the major changes is observable in American oil industry, where new fracking technology allow production of a domestic oil hence minimizing over-reliance of Middle Eastern oil. The move also symbolizes US contracting external influence and its preparation to shift to a consumer-driven economy rather than an import-export model.

Money and the Prices in the Long-Run and Open Economies

The world’s most dominant economy operates at two speeds. First, a lackluster global demand and a strong American dollar weigh on export despite the mounting business investment pressure due to political uncertainties and low oil prices. Secondly, an upbeat consumer confidence, skyrocketing real wages, and unyielding labor market boost household spending. Late in summer 2016, ISM manufacturing contracted due to a decrease in nominal retail sales. It is attributable to the falling gasoline prices instead of slowing consumption of goods and services. Interestingly, the consumer fundamentals are buoyant since the business sector creates more than 200, 000 jobs per month (Bernanke, 2016).

Despite multiple domestic challenges and transforming global economic landscape, the United States plays a pivotal role due to its large diversified economy. The US GDP represents more than 20% of the total global output, surpassing China’s by more than five trillion dollars. However, the United States is quickly falling behind other small countries such as Singapore and Norway in GDP (PPP). Yet, it boasts a technologically advanced and highly developed services sector accounting for approximately 80% annual outputs. Start-up firms dominate US economy, especially in areas such as technology, and healthcare. Besides, large US firms play a leading role on a global stage as multinationals.

Although the service sector is a fundamental economic engine, the manufacturing sector accounts for 15% of the total output, only second to China. Even as the America’s global influence fades, it is still a powerhouse due to classy physical infrastructure and access to plentiful natural resources. There is also a productive and well-educated labor force, hence a full leverage of human capital in a free-market environment. The US economy has flourished over the years because of a functional legal system, political stability, and an effective regulatory structure. The new immigrants introduce an entrepreneurial culture and solid work ethic, thus providing high-quality jobs to the local population. For decades, capital investment, innovation, research, and development drive America’s economic growth.

Notably, the country is emerging from a tumultuous economic phase. A major recession in 2008 began due to factors like lax state regulation, excessive risk taking by money lenders, and high consumer indebtedness. Other factors include widespread mortgage lending, low-interest rates, and property boom. The contraction of US economy continued between 2008 and 2010 but started picking up a year later after the government spent 1.6 trillion on a stimulus plan. Mainly, these finances resurrect troubled firms for financial system stability.

Additionally, the government introduced expansionary monetary policies to support the weak and vulnerable economy. The move entails sustaining the low-interest rates and acquisition of financial assets to minimize long-term interest rates. In addition, the government prints more money for quantitative easing. Consequently, the unemployment level is gradually returning to the pre-crisis levels as the labor market recovers. Regardless, economists are skeptical on the health of the economy, given persistent stock market shocks and the exit of manufacturers to the emerging economies such as China (Jorgenson & Stiroh 2012). Other signs of the sluggish economy include wage stagnation, high medical and pension costs, infrastructure deterioration, rising income inequality and large budget deficits. Over the next five years, economists project that US economy will worsen unless the government focus on domestic matters rather than increasing military spending and pivoting to Asia.

            Government spending should drastically reduce in five years. Since the 2008 depression, it has grown faster and unhealthily. Even worse, most of the expenditures are to other causes rather than national defense or homeland security. The Obama administration should understand that the looming baby-boom generation retirement will lead to higher entitlement costs. Hence it needs to make early preparations by cutting on unnecessary overseas expenditures.  It is recommendable for the United States to adopt a small-government fiscal policy to avoid being less competitive.

            Budgetary control should serve as a chance for economic virtue out of monetary necessity. Excessive government spending for a prolonged period has a negative economic effect. Exceptionally, productive government spending may yield a high rate of return and economic benefit. However, in case the rate of return is relatively slower than the private sector’s the economic growth slows down. Reducing the government’s burden within the next 5 years leads to a faster economic growth since its current spending is very high.

Trade Deficit is not a crucial variable. The main factor is the government’s size and out it finances its operations. While it is true deficits and high taxes are harmful, siphoning money from the private sector and spending them in counterproductive policies neutralizes the chances of rebounding from the economic slump. If the national government had a surplus, it still would consider reducing spending.

Regulating federal expenditures is necessary due to globalization. Today, it is increasingly easy for jobs to migrate from developed economies to the growing nations like China and India. Therefore, the enactment of substantial policies rewards considerably.

The Effect of Monetary Policy

In the short-run, monetary policy affects inflation and demand for services or goods. In addition, an introduction of monetary policy leads to high demand for a skilled workforce to produce commodities. When the economy was fairly performing in the United States, the Federal Reserve adjusted federal funds rate to influence performance in the financial market. The changes affect short-term loans which in turn influence the long-term residential mortgage rates and corporate bond rates. Shifts such as these in those seen in the long run interest rates affect the future asset prices, dollar value, and equity prices.

            Over time, the changing financial conditions impact the economic activity. For instance, when long-term interest rates drop, people can borrow cheaply. Therefore, the citizens are more willing to expand business operations and acquire properties. In response, business entities increase spending by boosting production and hiring more laborers. Eventually, the increasing household wealth triggers additional spending. The links between employment, production, and monetary policy are undetectable, making it hard to gauge monetary policy’s long-term economic effect.

Furthermore, monetary policy sways inflation rate. For example, when the government reduces federal funds, the high demand for services and good pushes wages and other expenditures higher to reflect increased demand for materials and labor. They contribute to the production process. Besides, policy actions affect the people’s expectations on the future economic performance, and these speculations directly influence the current rate of inflation.

In the year 2009, when the long-term interest rates reached zero (hence could not fall further), the Federal Reserve invoked emergency monetary policy measures for economic support. For instance, between early 2009 and late 2014, the Federal Reserve acquired notes and long-term mortgage securities to increase the amount of money in circulation. The move also lowers the long-term interest rates. Since the 1990s, the US current account

Balance of Payments

Over the past three decades, the international trade flows have influenced the America’s current account balance. Earnings on investments and American assets overseas constitute an insignificant part of the current account. In addition, the surplus category cannot offset sizeable trade deficit. If there is a current account deficit, the value of services and goods sold to foreign buyers are more than those purchased from abroad. Since late1990s, America’s current account deficit expanded rapidly before peaking at 6% of GDP in the year 2007. It then dropped sharply in the following years and leveled at 2.3%. The drop is due to an increasing oil production in the USA.

Capital account surplus mirror the current account. In fact, financing the current account is possible due to capital inflows from abroad. Foreign firms (mostly Chinese) continue to invest in US firms and their assets, thus earning US the top spot in FDI rankings. In 2012 alone, US received $167 billion in FDI where 40% was from the manufacturing sector. 

America is one if the leading exporter and importer of services and goods globally. Nevertheless, the country has a trade deficit because it depends on oil from the Middle East to meet the domestic energy demand. In the year 2013, the trade deficit reached 701 billion. America plays a critical role in the global trade platform because it endorses free trade agreements while minimizing trade barriers. Among them are TPP and NAFTA (North American Free Trade Agreement).

The US government is struggling to eliminate adverse effects of recession through a combination of monetary and fiscal policies. The government actively implements a stimulus program and minimizes tax rates to stabilize the economy. In addition, the Federal Reserve utilizes both unconventional and traditional policies to tackle economic shocks. The US has a reputation as a successful enforcer of free-market policies. However, excessive government intervention has narrowed the differences between a Capitalistic economy and China’s communism.

Loanable funds and Foreign Exchange

The net capital outflows involve investments, savings, and foreign exchange. In a market for loanable funds (or investments), people deposit their savings in the banks. On the other hand, businessmen wanting to expand their investment borrow loans from financial institutions. Therefore, all income corresponds to savings in both government and private accounts (Ize & Yeyati, 2013). On one side of the equation, there are savings, while on the other side, there is foreign and national investment constituting loanable funds. Hence, there is equilibrium when net capital outflows and equal investment savings. High-interest rates imply relatively high ROI for loaners. Conversely, people borrowing loans return more due to additional interests.

When the US government experiences budget deficit, it remarkably cuts the amount of loanable funds, given that the expenses are more than annual revenues. Therefore, the negative value for government savings minimizes the total savings. At the same time, the real interest rate rises as the net capital outflow drop. In turn, the amount of dollars supplied for foreign exchange decreases. In the end, there is an appreciation of real exchange rate.

The net export rise since at any real exchange rate, import quota remarkably diminishes imports. Consequently, foreigners have to acquire more dollars for buying US net exports. While this raises the real exchange rate, there is no observable change for loanable funds market. Hence, the effect on real interest rate is negligible.

In summary, the strategic plan is achievable despite slow US economic growth. First, the US government is reputed for implementing effective interventions to salvage the economy in times of crisis. For example, the Federal Reserve introduced monetary and fiscal policies to halt economic contraction within two years. Therefore, businessmen and consumers have confidence in future American economic prospects. Secondly, US’s is a global leader in innovation and research and development. Besides, there is a skilled workforce to ensure business success and expansion. Third, most countries use US dollar as a reserve currency hence can maintain its value despite government’s economic stimulation program. However, the government has to focus on domestic spending, especially in the infrastructural upgrade.

References

Bernanke, B. S. (2016). US Economic Outlook. Vital Speeches of the Day, 73(9), 377.

Ize, A., & Yeyati, E. L. (2013). Financial Dollarization. Journal of International Economics, 59(2), 323-347.

Jorgenson, D. W., & Stiroh, K. J. (2012). Raising the Speed Limit: US Economic Growth in the Information Age. Brookings Papers on Economic Activity, 2012(1), 125-210.

Denver Art Museum

Jovan Karlo Villalba

At a glance, it is clear that Jovan Karlo’s interest lies in imaginary depictions. The artist courageously incorporates random colours in his work to evoke viewers’ emotions. In fact, he toys with the observer’s experience by including reflective materials like stainless steel. Ironically, the golden frame, a white background, and paint layers combine to form an interactive surface. Eventually, the depiction changes the viewer’s environment. A closer look reveals that the environment is not only free to inhabit but also intriguing. As the viewer inspects the details, he realizes its potential danger and a new reality. The painter intentionally undermines coherence to expose a familiar terrain.

Hamilton Building

On the Third floor of the Denver Art Museum (DAM), there is a special exhibition of controversial art. The exhibitors unify the eclectic piece mash-up under politics, geography, self, and ecology threads. In addition, they typed thought-provoking explanations on the white walls. The artwork not only invites viewers but also incite them to start conversations. The artists employ crude and simplified depictions of riffs and everyday materials on cultural conventions for infusion of contemporary art with a challenging and provocative theme.  A glaring image by Robert Therrien on Hamilton’s walls greets viewers as they enter through the giant glass doors. Given that the room is spacious and well-lit, the attendees have an unobstructed view of artwork from all four sides, despite the plastering of wall dividers.

If there were no common threads, the room would be boring. It would look like a closet with random neatly packed objects without a purpose. In the Audacious, there are other notable pieces like the blinking neon sign by Bruce Nauman and Mel Chin’s blurred wood pipe.  For a viewer willing to participate, the exhibit has six transparent glass bowls with distinct colored blocks. They are visible near the first divider on the wall entry. Notably, there is a massive portrait window specifically designed to view Denver’s warm blue skyline.

Adoration of the Magi

The Adoration of the Magi measures a sizeable nine feet by eight feet. The painting by Sandro Botticelli depicts numerous people surrounding Jesus Christ’s makeshift structure. Instantly, the viewer notices the crumbling edifice surrounding the child’s modest roots which poignantly contrasts the rich robes of the bystanders on the makeshift altar. All the individuals portrayed in the painting are members of Medici family. Further, the artist’s excellent skills reveal distinct expressions poses, and characters, thus highlighting a diverse array of imagery and colors. Probably, Botticelli painted himself as a blonde-haired old man on the front-right. There is no doubt that his self-portrait marked a pivotal moment in his work.

North American and European Building

The north building is warm and inviting. The structure’s interesting architectural designs and graphical representations cannot be found anywhere else in DAM. On the sixth floor, there are dozens of works from 1900 and the middle ages, thus representing a major development in technique, style, materials, and form of North American and European decorative art and furniture. The incorporation of Egyptian mummies and casing adds a new taste to the room. They remind the viewers of British discoveries in Egypt while the Middle Eastern country was under its colonial rule.

Gallery Space Comparison

I prefer Hamilton building in comparison to the North building because the former is well lit than the latter. Besides, Hamilton building some of the most coveted art of the modern art that invites the viewer to think critically. O n the other hand, most of the artwork in the North Building has an unclear history. For instance, there it is probable that the Egyptian mummies were smuggled into the DAM from Egypt (Denver Art Museum 52). They belong to their native country and should peacefully be displayed in their Egyptian tombs.

Works Cited

Denver Art Museum: Highlights from the Collection. Denver: Denver Art Museum, 2014: 1-83. Print.