'Merger results in job losses'

1. Create a list of stakeholders who may benefit from this merger and give a brief description of the benefits.

The passengers who use airline for their trip would benefit from this merger. If this merger offer passengers cheaper prices, they might benefit from this merger. Also, the manager of the merged airline may get benefit. Merger will result in a business worth over $2 billion, so the manager or the director of the airline will get this benefit directly by making much more profit than before. Lastly, citizens of major cities may benefit if the airline expand their operations and make those citizens use airline much more easily, conveniently and quickly.

2. Create a list of stakeholders who may be hurt by this merger and give a brief description of the benefits.

First, the employees that worked in the previous airline may be hurt by this merger, as they might lose their jobs. According to the chief executive of the airlines, they are obviously going to cut more than 500 staff. Those more than 500 staff will stop making profit to live. Secondly, the local governments may be also hurt because their towns will lose routes.they might not get any food and fuel from local suppliers to the airline. 

3. Identify the 'losers' in this merger and explain what could be done to lessen the impact of this merger on them.

I think the 'losers' in the merger are the workers who lose their job in the competition that the merger might make. It can be the previous airline's manager in high hierarchy or it can be ordinary employees in lower hierarchy. To lessen those 'losers' and the impact of the merger on them, the merged airline company should embrace or have as many previous employees as possible or give them another jobs, such as consultant, that need more people. If the merged company does not cut employees indiscriminately, the impact of this merger on the 'losers' will be lessened.

Revision Activity

Revision Activity

1. Analyze whether Peugeot Citroen's objectives fit the SMART criteria

 I think its objectives fit the SMART criteria.It has a not only specific but also measurable objectives.Even though its overall objective is to become the most competitive car market in Europe by 2015, it also has other objectives that aim to eventually fulfill the overall objective. Their objectives are to increase the profit margin of each car sold from 2% to 7% by 2015, and to increase sales by 4 millions cars a year by 2015. Therefore, these objectives are specific enough to apply directly to what Peugeot Citroen does and measurable enough to determine whether the objectives are reached or not. Also, they are achievable enough not to make the workers discouraged, provided they work hard to achieve their sub-objectives. They are also relevant and job-specific, so that all the workers have their own real meanings of the objectives. Its departmental operating targets have been established. For example, human resources department mush prepare for up to 8000 job losses. Lastly, they have an exact time, 2015, when they decided as a d-day to achieve the objectives. Therefore, I think Peugeot Citroen's objectives are all fitting the SMART criteria.


2. Analyze the importance of the chairman not only setting an overall aim for the company but also establishing departmental objectives.

By chairman's setting an overall aim for the company, chairman can give almost all workers motivations to make them work much more than before. In other words, workers might be encouraged and think about how serious and passionate this project is by looking chairman's effort, as watching chairman's seemingly huge effort for the company is not a common thing for the ordinary employees. Also, the other car companies might be encouraged to compete with Peugeot Citroen and might work hard as well. Thus, Peugeot Citroen might be also encouraged by them, and work much harder as well. Therefore, it might leads to a huge motivation for not only workers in its own company, Peugeot Citroen, but also other car companies which might also make Peugeot Citroen instigated again.
Furthermore, by establishing departmental objectives, the company can give specific jobs for the employees who are already motivated to achieve the overall objectives. If some workers are motivated, but can not find any way to contribute to the company's achievement of the objectives, they can follow the departmental objectives. Also, those departmental objectives might eventually lead to the achievement of the overall objective with all the employees' effort following the departmental objectives.


3. Do you think Peugeot Citroen's shareholders would be pleased by Mr. Streiff's new objectives for the company?

Of course, the shareholders might be pleased by Mr. Streiff's new objectives. This is because the shareholders might think that those new objectives means the company is going to work harder than before. They do not really care about the employees' losing jobs or the local government, but they care about how much profit the company make. Even if the company fails the objectives, the failure might not give any harm to the shareholders. The failure might make all the workers in the company discouraged, but not the shareholders. Also, by 2015, the company will make as much profit as possible by doing their own best, regardless of whether they have reached the objectives or not, and that might make the shareholders pleased a lot. And, the likelihood of the company's failure is not that high though. Therefore, I think the news that the Peugeot Citroen established new objectives might make the shareholders of Peugeot Citroen feel pleased.


4. To what extent might these objectives have to be changed before the 2015 target date is reached?

I think before the 2015 target date will be reached, Peugeot Citroen should have the other objective to progress interim check. If they check the interim, then they can figure out how far they have gotten or what they need or improve to reach the objectives. If their progress looks good, then they can continue what they are doing. However, provided their progress looks not good enough to achieve the goal, then they need to change the objectives or find the other way to achieve the objectives. Thereby, they might increase the likelihood of the achievement of the objectives.
Also, I think targeting the profit margin of each car sold should be changed before 2015 target is reached. In fact, that would not help to each the overall objective if Peugeot Citroen makes products with great quality but sells them with a cheap price to lead people to buy their cars. Peugeot Citroen's profit margin of each car sold might be less than before. However, they might sell much more cars then before. Thus, the profit margin of each car sold would be useless to achieve the overall objective. Only the objective of selling 4 million per a year should be unchanged.  

Activity 3.5 and 3.6

Activity 3.5

1. Explain what you understand by the terms:
a) business ethics- SCG should treat workers or stakeholders indiscriminately and fairly. Also, they should make business gain including the profit in a proper manner, but not make alliances with any political parties.
b) Code of conduct- SCG workers should uphold its principle of honesty and fairness and protect its reputation and properties by behaving appropriately toward others or doing ethically.

2. Explain gow SCG and its employees might benefit from the clear statement of business ethics and the code of conduct.

 Wirh the clear statement of the business ethics and the code of conduct, SCG might make as much benefits and profits as they can by not ignoring the business ethics. In other words, they can be an ethically business by making lots of benefits.

3. Should business such as SCG ever use unethical methods in a country where they ar the norm, for example the giving and accepting of bribes?

 As long as so many businesses are already using unethical methods to succeed, I think SCG needs to follow them not to fail. If only SCG operates ethically, even thought it's a great thing, it would be impossibly hard for it to succeed among other businesses that gain much more benefits with unethically ways.


Activity 3.6

1. Analyze why Virgin Atlantic is making efforts to reduce the amount if jet fuel used by its aircraft.

 Because the jet fuel usually pollutes the environment so much, Virgin Atlantic thought reducing it would be so beneficial for the preservation of the environment, especially air conservation.

2. To what extent will the company lose or benefit from these well-publicized attelts to reduce air pollution.

Even though its well-publicized attempts were not successful, the company might gain probability to invent new successful environmentally-friendly fuel by finding some resolutions for the failures that were found in their attempts. However, they might spend so much money for those well-publicized fuel. Therefore, they lost lots of money due to the failures of the fuel. Furthermore, if they try again and fail it again, they will not only lose tremendous money but also its reputation.

A example of unethical action

Toyota, one of the most successful car companies in the world, mad a huge and unethical failure in 2010. Even though safety is one of the most important aspects of car company, Toyota betrayed their promise as a company by infringing safety concerns and delaying recall investigation to save as much money as they can. For example, they put side airbags in not all the cars that they produce but only some of them to save more money. Also, to save as much money as possible, they delayed the role for tougher door locks and used unethical ways to fix and recall vehicle. They kept doing these unethical things for entire two years. Because they had hided all the evidences in hundreds of death cases, no one exactly know the results of their unethical things. However, people assume that all the hundreds death cases are caused by the unethical actions. It seems that they apologized after all because they got caught, and if they didn't get caught, they might keep doing unethical things and never say sorry. Because of  the divulgence of their unethical actions and accusation of hiding evidemces in lots of death cases, Toyota lost so much prestige, wage and profit, and many people started distrust Toyota by stop buying their cars.