Risk Assessment. The business of Tesco Essay Example | Topics and Well Written Essays - 1750 words

Risk Assessment. The business of Tesco - Essay Example Tesco has its retail stores spread over 14 countries all over the world and also holds the leading market share in the retail markets of UK. The primary products of Tesco include the retail grocery items and other retails consumer products that are being sold through its departmental stores, supermarkets and the retail chains. The economic liberalization policies adopted by the policy makers have resulted in the increase in the number of players in the retail grocery markets of UK and in other countries. In order to attain sustainability of business, Tesco has diversified its product portfolio with the activities of retailing of clothes, electronic items, music DVDs, books , financial services, etc (Tesco 1). Vulnerability to risks The business of Tesco which is spread in several countries all over the world is vulnerable to several risks. A list of risks to which the business of Tesco is vulnerable has been given in tabular form below. Sl. No. Risk 1 Interest Rate Risk 2 Foreign Cur rency Risk 3 Liquidity risk 4 Credit Risk 5 Insurance Risk The two major risks to which the business of Tesco is most vulnerable are the interest rate risk and the foreign currency risk (Frank 174). Due to the increase in interest rates as an outcome of the monetary policy, the interest payout in the form of debt liabilities are likely to increase (Weston 24). This would result in increased cash outflows which reduce the net income of the group and also lesser repayment of debt and liabilities. This is risky for Tesco as they would continue to have higher proportions of debt with respect to the equity (Tesco 1). The foreign currency risk is the uncertainty that Tesco faces due to the fluctuation of currencies in the local markets. As a result of the depreciation of the local currency, the currency conversion rates between the local currency and Pound Sterling would be affected (Cowan 96). This poses the risk to Tesco as foreign currency fluctuation would result in reduction of reven ue earnings of the group and the volume of profits repatriated to the home country would also decrease (Whaley 226). Probability The probability of the two risks, namely the interest rate risk and the foreign currency risk have been explained as follows based on the information available from the annual reports of Tesco and the events that have occurred in the last financial year. The interest rate risk poses uncertainty to Tesco as the company is subject to fluctuation of interest rates by the central banks in several countries (Sullivan and Sheffrin 172). As per the information available from the annual reports of Tesco, it has been observed that the company had to bear the cost of increase in the interest rates implemented by the central banks. As monetary policies and in order to control the inflation rates in the economy, the increase in the interest rates has been implemented by the central banks in many countries where Tesco runs its operations (Brown 341). Thus the cost of d ebt incurred by the company has increased (Handlechner 36). The probability for the fluctuation of interest rates has been assumed to be 60% looking at the trend of impacts on the financial parameters of Tesco’s performance. It is highly probable that the foreign currency conversion rates are further going to fluctuate as the economies are in the mode of restructuring after the occurrence of the global financial crisis (Hennessy and Zechner 271). The uncertainty in the foreign currency conversion is likely to have a cascading effect on financial performance of Tesco. The cost of finance obtained by Tesco in the local mark

PS3201 Family Studies Essay Example | Topics and Well Written Essays - 3500 words

PS3201 Family Studies - Essay Example The element of a family constitutes a husband, children, and a wife who reside under the same roof. The interaction among the above elements shapes or defines the behavior that a person who demonstrate in the society. However, the description is limited to what many people believe to constitute nuclear family. In some traditional settings especially in Africa, family would constitute members of nuclear family and members from the extended wing (Strong, et.al. 2010:420). The extended elements are aunts, uncles, and grandparents. This paper will examine a family in the modern era. Family setting depends with cultural practices observed by a given community. Communities across the globe demonstrate their cultural heritage through the association, which they project through their families. Traditions in Nigeria regarded a family as institution that was center to human existence i.e. sustainability of human race depended on the constitution of new families (Rotimi, 2005:8). The culture propagated by people started from a family. The regard that the community gave to family was an institution just like other social institutions where people demonstrated adherence to order or law. The values set in the family included how to bring up a child, how children would relate with community members, courtship, rules of descent, ownership of property among other taboos. The taboos observed by a family had moral consequence to individuals who went against the norms. People believed in practices stipulated in cultural norms. Men had cultural responsibility of heading their f amilies (The Fellows’ Forum, 2005:13). Rules set by communities gave an opportunity to men to have as men women as possible as long as the man was able to cater for their needs. The traditional setting recognized the existence of the relatives and the role in the family (Omoera, 2010:78). For example, brothers in law

Insider Trading Research Paper Example | Topics and Well Written Essays - 250 words

Insider Trading - Research Paper Example In Martha Stewart case, Martha avoided a loss of $ 46000 by selling her shares which is duly covered by the fine she was subjected to; Moreover, she lost a great deal of money as a tradeoff for her legal troubles. Furthermore, Martha Stewart Living Omnimedia’s stock price fell and Martha was banned to serve as an officer or director of a public company for five years. Peter Bacanovic, on the other hand, was barred from working in securities industry along with a $ 75000 fine. These penalties are enough to set an example for the public. SEC can and should take measures to prevent such incidences before their occurrence. They can do so by eliminating the opportunity to insider trading because no matter what the penalty, such violations are very appealing to people as their upside is extremely lucrative. â€Å"Research shows that the certainty of punishment, rather than its severity, as well as how particular punishments are perceived, that most greatly impacts whether criminal sanctions deliver a potent â€Å"message† to would-be lawbreakers† (Berman, 18). Control person provision suggests certain internal controls that would raise the bonding cost. By incurring bonding costs, a firm’s cost of capital will be reduced. Insider trading leaves behind agency cost and since investors cannot detect insider trading within a firm, they adopt a discounting method to value the firm’s stock that leads to a raise in the firm’s cost of capital. So in essence, incurring bonding cost would reduce the cost of capital which would send a strong signal to the investors that the firm has taken extraordinary measures to control insider trading. So in short SEC should impose the control person provision which would encourage the application of internal

Current Event on India Essay Example for Free

Current Event on India Essay India is seeking information from China as to why their balance of trade is so skewed. China has been exporting to India far more than it has been importing. This scenario has been reflected globally, with many countries wondering why China has reduced their imports so much. China has also put a ban on Indian Iron Ore, their main export, causing more tension between the new countries. China professes to be increasing their trade annually, pulling them out of the worldwide recession, but many economists and financial experts, including some within China itself, are skeptical as to the legitimacy of these statements. This article relates to our international economics unit that we just completed. China has put a ban on iron ore and slackened their rate of import of Indian goods, causing a problem in their balance of trade. The article was easy to follow and understand due to the lesson that we just completed on trade barriers. The article also shows how government as well as business has a role in promoting trade and controlling the amount of trade that occurs between specific countries. I feel that China is being unfair to India by not granting them the information that they request. Refusing to trade with a country is one thing, but severely reducing trade without an explanation is uncalled for and suspicious. Their decisions regarding imports and exports affect a massive part of the world economy because of their economic strength. Their ban on Iron Ore from India is specifically detrimental to India’s balance of trade because of its dependency on the demand for iron ore as an export. With China being one of its largest consumers, this severely impedes India’s development. As an Indian economic analyst, I would be seriously questioning China’s intentions after this move.

Influences of Colour on Perception

Influences of Colour on Perception Introduction The great mystery of colour has mesmerised humanity since time immemorial. For every second of the day we are enveloped by a seemingly infinite range of hues which oscillate through morning, noon and night. This incessant interaction with colour has manifested itself in some of the finest examples of artistic expression, such as Wordsworth’s ‘Daffodils’ and Van Gough’s ‘Sunflowers.’ From the cave paintings of pre-history to the conspicuous advertising hoardings of the modern era; all of the great civilisations have been infatuated by colour. In recent years both academics and functionaries within the commercial domain have become increasingly interested in how human beings are influenced by colours. Much advancement has been made in the fields of colour psychology and colour marketing. It would certainly appear that colour has a profound effect upon the human psyche. As Diane Ackerman has noted ‘Colour doesn’t occur in the world but in the mind.’[1] Colour and Perception According to the Oxford Dictionary colour is defined as ‘the sensation produced on the eye by rays of light when resolved as by a prism, selective reflection, etc., into different wavelengths.’[2] It was Sir Isaac Newton who discovered this phenomenon by focusing a ray of white light upon a prism and creating a spectrum. His findings are illustrated in his 1704 work entitled ‘The Opticks.’ Each colour has a unique frequency and wavelength, and all comprise the segment of the electromagnetic spectrum which is visible to the human eye. Specific objects both reflect and absorb particular wavelengths of radiation. The reason that plants appear to be ‘green’ is because they absorb all colours in the electromagnetic spectrum with the exception of green.[3] The green light is reflected by the plant and can consequently be detected by the human eye. All ‘coloured’ objects surrounding us are in fact reflecting ‘their’ colour towards us. The complex process of colour identification and differentiation is initiated by the ‘cone’ cells of the retina which can detect blue, red and green light.[4] This information is then transmitted to the optic nerve and onwards to the brain. Some scientists insist that blue, red and green are the true primary colours and that all colours are merely combinations of the three. However, many dispute this and argue that yellow is a primary colour. Aristotle and Goethe classified yellow as a primary colour and noted how it is the first to materialise from white light.[5] The ‘pure’ quality of yellow is evident and it exhibits the highest reflectivity of all the colours.[6] Yellow is also a ‘warm’ colour of long wavelength and the retina must enlarge convexly in order to focus objects of this hue. A bright yellow banana will seem larger and closer to the spectator than an object reflecting a cool shade of blue or green from equal distance.[6] Yellow is truly a highly prominent component of the electromagnetic spectrum. The puissance of this colour is evident in its outstanding ability to attract the eye and it is commonly deployed for promotional purposes in the commercial sector. As E P Danger has stated it is an ‘excellent attention getter.’[7] Yellow is synonymous with the warmth, energy and vitality of the sun, and the theme of ‘hope’ is evoked as it represented the first light of dawn to peoples of pre-history.[8] It is the hue of science, expansion, alacrity and swift decision making.[9] The emotional impact of yellow was observed by Diane Ackerman whilst observing a brilliant piece of yellow sulphur. She described an overwhelming ‘rush’ of pleasure and excitement.1[0] June McLeod noticed that ‘we can sometimes lose our identity and focus with too much yellow.1[1] Students of colour psychology are familiar with the link between this colour and the emotional chakrah of the solar plexus.1[2] Particular shades of yellow can have a detrimental impact upon the viewer. Negative concepts of disease, jaundice and decay have so often been associated with it. The notorious ‘yellow-press’ and yellow of the coward conjure up less palatable images.1[3] These factors, which have been ingrained into the collective consciousness of the human race, must be carefully considered and borne in mind by those wishing to utilise the colour yellow for academic and commercial purposes. The Use of Yellow Paper for Academic Purposes The increased use of dyes in the paper production process of the late eighteenth century, and subsequent developments in the industry, have provided the medium of coloured paper.1[4] On a rudimentary level, coloured paper may be deployed by academic institutions for classification purposes. The Scottish Examination Board issue a different colour of exam paper for each respective subject. E P Danger has stated that yellow is ‘one of the best of all colours for paper because of its high visibility.’1[5] He also notes how ‘it is said to stimulate the intellect and for that reason is often used in libraries.’1[6] Librarians often choose to index by affixing yellow tags on the spine of books. This allows prompt recognition for those searching for a specific text. Card index files and ‘post-it notes’ are also frequently provided in this colour. Strong shades of yellow can prove effective for presentational purposes in both the lecture theatre and the classroom. The subliminal effects of yellow paper can clearly have a positive effect on those engaged within the realms of academia. June McLeod recognises yellow as the colour of ‘mental energy’ and highlights how typing or writing on to yellow paper will keep you alert and focused on the job at hand.’1[7] Dee and Taylor have decreed that yellow is the colour of ‘those who must concentrate.’1[8] Yellow paper is also less stark than white paper and thus more conducive to study. Much research has been conducted using ‘colour cards.’ It has been discovered that humans ‘sense’ colour through the skin. Suzy Chiazzari has explained how ‘many blind people can differentiate colours by passing their fingers or hands over an object.’1[9] Yellow paper can be readily deployed by academics and colour therapists alike in order to harness the properties of this specific colour. Yellow Paper and Advertising The vibrant world of advertising and marketing draws considerably upon the profound qualities of the colour yellow. The prominent hue of the ‘Yellow Pages’ directory is instantly discernable, internationally recognised, and affords prompt access to a vast array of service providers. The presentation of black type upon yellow pages focuses the mind excellently and provides high visibility.2[0] The reader may deploy ‘skimming’ skills and be less likely to overlook the desired information. Many phone directories and publications have now emulated the success of the ‘Yellow Pages’ when exhibiting classfied sections. Yellow paper is commonly the medium of flyers, which are distributed freely in urban areas, and for posters in public places. It can swiftly transmit a specific message to the target audience. The importance of colour in advertising is of paramount importance and can transmit powerful messages via company logo, stationery, packaging and design.2[1] Yellow is favoured by the travel and leisure industries with its promise of sunshine. The cover of the current Tropical Locations travel brochure is a dazzling shade of rich yellow. Low budget travel operators and airlines make liberal use of yellow in their advertising campaigns as they strive to coax potential clients with notions of instant Mediterranean climes. The ‘holiday’ concept has been masterfully exploited by the Kodak photographic company for many years now and ‘Kodak yellow’ has become almost synonymous with sun, sea and sand. Food promotion shares a close relationship with yellow in most cultures2[2] as the colour has an appetising effect upon consumers.2[3] Products such as cheese and butter are usually marketed and packaged in this hue. The recent Cadbury’s Twirl product was successfully promoted with yellow lettering emblazoned upon a violet background. This is interesting as violet is the complimentary colour to yellow on the Colour Wheel.2[4] Products which are promoted using yellow frequently utilise shades of blue and violet to harmonise visual appeal. A rich yellow implies a strong taste and more golden shades represent quality. The world famous MacDonald’s logo with its large yellow ‘arches’ embodies the concept of ‘fast food.’ Yellow paper is used for the labelling and promotion of soft drinks. A paler shade signifies a lemon or milder taste.2[5] However, the use of a stronger yellow to promote Lucozade epitomises the concept of ‘energy’ excellently. Alcoholic beverages such as Tennents Lager and Boddington’s Ale utilise yellow for marketing purposes. This is extremely effective as it symbolises the very appearance of the product. Cardboard packaging and place mats may be eye-catching, but also serve to kindle images of the drink in the mind, as well as whet consumer appetite. Products targeted at younger people are generally advertised using yellow. It has been discovered that children like yellow and teenagers respond positively to the colour.2[6] Children’s wear and cosmetics are often advertised using yellow. This colour is associated with newness, youth and optimism.2[6] This may be why the ‘Job Centre’ in the United Kingdom has recently been conducting its employment campaign in the colours of yellow and green, which combined, are symbolic of spring-time and new beginnings. Conclusion Danger has emphasised that colour ‘motivates people in a way that is largely subconscious’ and that it is extremely difficult to discern ‘where physical, visual processes end and mental processes begin.’2[7] Ackerman has also commented that ‘scientists have known for many years that certain colours trigger an emotional response in people.’[28] The development of the ‘Colour Effects System’ since the 1970s highlights that there is a definite correlation between colour and human response to colour. It is generally accepted that yellow provides the most powerful psychological stimulus. It is for this reason that it has been utilised by academics and advertisers for a wide variety of purposes. When one considers the high incidence of yellow paper within academic institutions and the commercial sector it clearly has a profound influence. The overwhelming amount of logos, promotional literature and products which have harnessed the colour is truly astounding. It is even more intriguing that we are often not even consciously aware of its potent subliminal messages. The mysterious appeal of the colour yellow ensures that yellow paper shall continue to be produced and utilised for academic and promotional purposes for many years to come. Bibliography ACKERMAN, D. A Natural History of the Senses, Phoenix, 2000  Pages: 252-256 CHIAZZARI, S. The Complete Book of Colour, Element, 1998  Pages: 12-18 DANGER, E P. The Colour Handbook, How to use colour in commerce and industry, Gower Technical Press, 1987.  Pages: 54, 56, 60, 61, 329, 378, 572, 573, 575-577, 580, 582, 585, 586. DEE, J. TAYLOR, L. Colour Therapy, The symbolism, use and healing effects of colour, Silverdale, 2002.  Pages: 8, 59 GREGORY, R L. Eye and Brain, The psychology of seeing, Oxford University Press, fifth edition, 1998.  Pages 124-126 JONES, M. JONES, G. MARCHINGTON, P. Physics, Cambridge University Press, Second Edition, 1997.  Pages: 138-140 MCLEOD, J. Colours of the Soul, Piatkus, 2000  Pages: 131, 132, 136, 145-158. NATIONAL ASSOCIATION OF PAPER MERCHANTS. EDUCATION COMMITTEE, Paper, its making, merchanting and usage, Longman, third edition, 1974.  Pages 5, 7. WRIGHT, A. The Beginners Guide to Colour Psychology, Kyle Cathie Limited, 1998.  Pages: 17, 21, 27, 81, 149, 150, 154. The Concise Oxford Dictionary, Oxford University Press, 1990.  Page: 223 Footnotes [1] D Ackerman, A Natural History of the Senses, Phoenix, 2000) 254 [2] The Concise Oxford Dictionary, Oxford University Press, 1990) 223 [3] M Jones, G Jones, P Marchington, Physics, Cambridge University Press, 1997) 139 [4] M Jones, G Jones, P Marchington) 140 [5] A Wright, The Beginner’s Guide to colour Psychology, Kyle Cathie, 1998) 17 [6] J Dee, L Taylor , Colour Therapy: The Symbolism, Use and Healing Effects of colour, Silverdale) 2002 [6] EP Danger, The Colour Handbook: How to Use Colour in Commerce and Industry, Gower, 1987) 56 [7] EP Danger) 573 [8] EP Danger) 586 [9] J Dee, L Taylor) 59 [0] 10 D Ackerman) 254 [1] 1 J McLeod, Colours of the Soul, Piatkus, 2000) 136 [2] 12 A Wright) 27 [3] 13 E P Danger) 585 [4] 14 National Association of Paper Merchants, Paper, its making, merchanting and usage, Longman, 1974) 5 [5] 15 E P Danger) 585 [6] 16 E P Danger) 572 [7] 17 J McLeod) 136 [8] 18 J Dee, L Taylor) 59 [9] 19 S Chiazzari, The Complete Book of Colour, Element books Limited, 1998) 15 [0] 20 E P Danger) 582 [1] 21 J McLeod) 131 [2] 2 E P Danger) 575 [3] 23 E P Danger) 329 [4] 24 A Wright) 149 [5] 25 E P Danger) 576 [6] 26 E P Danger) 573 [6] 26 A Wright) 150 [7] 27 E P Danger) 56 [28] D Ackerman) 254

College Athletes Should be Paid Essay example -- argumentative essay

A running back slips through the line, breaks a couple tackles, and scampers down the sideline for a large gain. The point guard pulls up for a deep jump shot over his defender and nails it as the shot clock expires. Both of these descriptions can be used to describe either a college athlete or professional athlete. Both are participating in a sporting event in which fans will pack into the stadium or arena. Money is flowing into both the college and professional organization. This is where the similarities end. In the professional leagues such as the NBA or NFL, athletes make millions of dollars off of lucrative contracts and an abundance of endorsements. They can make as much money as they possibly can. In college, the athletes are limited to what kind of scholarship the college they are attending provides them and whatever money they have saved. It may not appear like this is not a serious problem. However, there is the one glaring difference between these two sides. While professional athletes are paid to play and can make bundles of money, college athletes are not allowed to receive money or other benefits of any kind even if they acquire this money in a legal and correct fashion. This has been the rule for ages, but many people are starting to challenge the rule. There are people who believe that college athletes should not be able to receive benefits of any kind, including money. On the other side, there are people who believe that the college athletes should be able to make money and support themselves. The people who are the side which believes the should not make money usually point out the fact that they are in college and should be more focused on their studies. The other side provides many valid points to h... ...rmine how much to pay each player in different sports. However, it seems completely unfair that a college athlete can neither accept gifts from someone or even sell their own possessions to make money. If a regular student can sell something they own on a website such as Ebay, why is that an athlete is not allowed to do the same with something they own? It also seems crazy to me how something as simple as â€Å"Dez Bryant [a former wide receiver at Oklahoma State]...having a meal with Deion Sanders† (Rogers 2) will cause the NCAA to throw down harsh suspensions down on the athlete and school. The NCAA needs to worry about more important things then who the student-athletes dine with and whether or not they are selling apparel they wore in a game. Hopefully they will realize this and the student athletes in college will finally get a fair chance at the money they deserve.

Harley-Davidson’s Motivational Programs Essay

History of Harley-Davidson:Today it is hard to imagine Harley-Davidson (Harley) as a low-quality motorcycle manufacturer in severe financial trouble. But that’s exactly what Harley was in the beginning of the 1980’s. Harley motorcycles were of such poor quality that over half of all the cycles produced were effectively inoperable because of missing parts or poor assembly. When Japanese motorcycle manufacturers entered the US market th reliable and well-built bikes, past and potential Harley customers switched over to the foreign brand. The only customers that remained with Harley were its most loyal, technologically savvy ones who were committed to the Harley brand name. As a result, between 1973 and the early 1980’s, Harley’s market share dropped from over 75% to under 25%. By 1984, sales had dropped to $294 million and profit was merely $2.9 million. The future of Harley was nothing but bleak. In order to change the company’s performance and improve the quality of the bikes produced, Harley implemented a series of programs and reorganization efforts to motivate its employees to help Harley turn around. Since Harley was financially squeezed, the bulk of the incentive programs were based on intrinsic motivation, including employee empowerment and increased challenge and excitement in the job. Harley also began offering financial incentives that were tied to specific performance factors. Due to the extraordinarily positive results from these programs, they are still in effect today. Intrinsic Motivational StrategiesEmployee EmpowermentIn order to motivate its employees to improve the manufacturing process, Harley implemented a program that empowered its employees at all levels to take more control of the operations and decision-making in the company. In order to get the best that each employee has to offer, Harley encourages every employee to suggest ideas, involves all employees in major company decisions, and allows its hourly workers to make more decisions than most companies. This not only improves employee morale by instilling a sense of worth in each employee, it also creates a sense of attachment to the company. In turn, this empowerment results in increased dedication to the company, hard work and improved employee performance because each employee is given the power to initiate change and make decisions that affect the company. Furthermore, Harley’s culture supports its strategy of employee empowerment. Harley is a flat organization with only two layers of management that fosters a friendly and collaborative environment. The atmosphere is casual and all employees interact with each other-there are no rigid lines between the management and the hourly workers. This generates a sense of camaraderie and feelings of mutual respect, which in turn facilitates open lines of communication and comfort with speaking up to identify problem areas and possible solutions. In addition, the company does not punish failed ideas or criticize out-of-the-box suggestions. Instead, the company always evaluates the new ideas and rewards employees for creative solutions that work. In fact, in 2001, more than 20% of Harley’s IT staff was internally promoted for creative thinking that resulted in better or faster production. Finally, Harley doesn’t force the added responsibility and power onto the employees and leave them to fend for themselves, adopting a survival of the fittest attitude. Rather, it provides them the tools and skills necessary to succeed in the more challenging and complex environment. Believing that all employees that are expected to take on the responsibility of increased employee power should be equipped with certain necessary competencies, Harley provides training in communication, conflict resolution, team skills, planning, problem solving, decision making, and performance management. For example, Harley-Davidson University, a training program required for all employees, â€Å"teaches employees how to do business stimulation and how to plan for ownership succession since they deal with a lot of goods and services† (How Companies are Managed). Harley even provides hourly workers the skills necessary to be able to market their new ideas to management and their peers. It trains employees on computers and teaches them how to give presentations on PowerPoint and how to use spreadsheets to manage the implemented changes. This commitment to training and education demonstrates Harley’s loyalty to and confidence in its employees and gives them the skills and abilities necessary to make employee empowerment a success for the company and a non-threatening, welcomed aspect of the job to the employees. An example of how employee empowerment motivated an employee to generate change in the production process and therefore financially benefit Harley is when an hourly worker suggested putting two tanks in the pain chamber where he worked. The suggestion was quickly implemented and ended up doubling the productivity in the paint shop! If not for the combination of employee empowerment, the necessary training, and a supportive culture, it is unlikely that this hourly worker would have even discovered the potential improvement in the painting process. Yet, even if he did, he probably would not have cared enough to felt comfortable enough to suggest his idea to his manager. Consequently, Harley would have missed out on the full potential of its employee and would have been less productive in the manufacturing process. Challenging & Enjoyable WorkHarley also motivates its employees by matching its employees with projects that are personally interesting and challenging to each employee. First, management makes the projects more meaningful to the employees by explaining the overall business objectives of the projects and helping them understand the business value of successfully achieving those objectives. For example, Harley doesn’t just promote new technology for technology’s sake, but rather markets the technology’s tangible importance to the customer and the bottom line. This gets the employees interested in the project and excited about achieving the stated goals. Harley also tries to motivate employees by making their work sufficiently challenging. While giving the employees the ability to and pressuring them to step up and initiate positive change in the organization is one strategy to make the workplace more exciting, Harley doesn’t stop there. It also offers all of its employees the chance to work on new technologies, innovative processes and highly-visible projects. Employees are assigned to these activities by â€Å"showing initiative, keeping up with current technologies [or process improvements] and learning soft skills such as how to work effectively on a team and how to talk with business customers† (Hamblen). This not only keeps employees interested in their work, it motivates them to improve their portfolio of skills so that they can participate in these challenging and exciting projects. Finally, Harley makes a concerted effort to match employees with projects and jobs in which they have specific interest. Managers are urged to stay in tune with the interests of their workers in order to best match them with the available job opportunities. For example, managers have quarterly review meetings with their subordinates to discuss upcoming projects in the company and determine which projects are of interest to the employee. Harley’s commitment to maintaining the employee’s interest in their work is paying off. In 2001, the IT department, which has over 200 employees, had a turnover rate of less than 3%. Such a low rate clearly illustrates the employees’ satisfaction with their jobs and commitment to Harley. Intrinsic Motivation: An exampleA prime example of Harley’s use of intrinsic motivation programs is its use of councils. Councils are groups of employees, with ten approximately members, who work to address specific issues that affect their day-to-day work. Fellow workers choose the members, and it is considered an honor to be selected to serve. The work done on the council is typically exciting and challenging, and produces tangible and noticeable results throughout the organization. Due to the prestige associated with being on the council, along with the skills developed by serving on one, â€Å"participating in a council is widely recognized as a career growth opportunity† (Vitiello). While these councils do increase decision-making time, the benefits are worth the lost time. First, they motivate employees to perform well in order to get on one of the councils and to get recognized while serving on one. Second, they create wider acceptance of the decisions by the employees because they were partly responsible for and involved in making the decisions rather than them being mandated by management. Financial MotivationHarley understands that while intrinsic rewards are important, employees are also significantly motivated by financial incentives. Therefore, Harley implemented three kinds of variable financial incentives, all of which that are linked to valued behavior. First, at least a portion of every employee’s compensation package depends on the achievement of the company’s annual goals; when the company meets or exceeds  its objectives, the employees meet or exceed their target salary. Second, Harley utilizes a stock program whereby a portion of the employees’ compensation is in stock options. This motivates employees to continually improve the overall performance of Harley because the better the company does, the higher the stock price a nd potential financial benefit to the employees. Finally, employee performance bonuses are given to individuals that provide exemplary work or suggest improvements that result in increased productivity or lower costs. All three of these programs motivate the employees to improve the productivity, efficiency, and financial performance of Harley. Harley-Davidson Today: The Results of Harley’s Motivational ProgramsThe programs implemented by Harley back in the middle of the 1980’s are still being used today. And for good reason-Harley’s performance has done nothing short of skyrocket since their implementation. In the first quarter of 2003, Harley reported net sales of $1.1 billion and a net income of $186.2 million. This is over 3.7 times the sales generated throughout the entire 1984 fiscal year. The Vice-President of the Kansas City office believes these motivation programs are the reason why Harley has had such a complete and long-lasting turn around:†[W]e’ve created an environment where all employees are valued and expected to make good decisions to benefit the enterprise, and people who feel they are making a contribution to the business are happier people, and they are committed to helping the company succeed. With 8,000 people showing up each day, determined to find ways to improve our business, I’m confident we will be able to continue our successful growth† (How Companies are Managed). Web Sites Used: 1.Why you can still buy a Harley; by Derek Parker; week of January 15, 2001: http://portland.bizjournals.com/portland/stories/2001/01/15/editorial1.html2.Harley profit roars past estimates on slower U.S. sales; week of April 14, 2003: http://www.bizjournals.com/milwaukee/stories/2003/04/14/daily26.html?jst=s_cn_hl3.How Companies are Managed; by Brandon McNeal: http://academic.emporia.edu/smithwil/001fmg444pa/eja/mcneal.html4.Harley-Davi