Financing Is The Key Component - Free Essay Example

Sample details Pages: 7 Words: 2134 Downloads: 9 Date added: 2019/10/30 Category History Essay Level High school Tags: Titanic Essay Did you like this example? Introduction Financing is the key component that determines the level on which the film is produced, because the budget determines the level on which it is shot. It is the main feature that makes the art film that targets the niche market different from the Hollywood blockbuster that aims at reaching the wide audience. Financing is critical not only for production of the movie which refers to the actual making of the media product. Don’t waste time! Our writers will create an original "Financing Is The Key Component" essay for you Create order It is also critical for marketing, which is the key component in distribution of the media product. It influences the actual reception of the movie, real popularity among the audience, and potential reactions of the audience and the critiques. So, financing is a complicated task that is the responsibility of executive producers. When the script for the movie is chosen, producers make everything possible to make it fit the budget, which is sometimes difficult to achieve. Because of the nobody knows, producers would have no ideas about whether the film will be successful after it released, which means that the main issue in marketing and choosing the right strategy is the thing that determines the future success or failure of the movie. These two categories have nothing to do with the artistic value of the particular work. It is more about the box office and the revenue that investors actually receive. Thus, it is possible to state that issues connected with financing do not only influence its quality, but also allow to evaluate the commercial success of the movie. It allows to call financing and marketing the basic components that are important toward the films. Financing There are hundreds of movies that are based on the love story at late 20th centuries, Titanic, directed by James Cameron, can be called one of the most well-known romantic movies that were produced at that time and it was the film about one of the most dramatic catastrophes of the 20th century. So, it allows to assume that there are other reasons that made Titanic popular except its narration of love story that makes the audience cry and feel compassion to the protagonists. First of all, it is crucial to understand that cinematography aims at impressing people. The effect includes audiences visual, emotional and hearing senses. As the result, it has become the evident blockbuster because of the romantic script, well- performed actors and iconic theme music. In fact, all these components require money, which means that it is the budget that has made the movie to the high professional quality. Furthermore, failure chance of the film would be high, since all innovations and production that made Titanic popular were expensive and everything was made without being sure that these expenses would be paid off. Thus, the main thing that was evident about financing of Titanic was that the production of the movie would be expensive. Because, Titanic is a huge ocean ship that was the technical revolution of that time and it was necessary to show the grandiosity of the construction in order to show the dramatic event. One of the objective difficulties during the production of the movie was building the ship and showing the ship wreck. Special effects that were used for this movie could be called innovative for the end of 1990s when digital graphics were not that developed as it is now. For example, the full-scale model of Titanic was constructed in the studio. All these things required money to build and to support, which was the serious challenge for the movies budget. In addition, the script was also adapted to the conditions in which the movie was actually shot. It shows that it was a challenging process that required much time, attention, and professionalism from the cast. All these components of the working process required financing from the movies budget and it was the duty of the executive producer at that time. In order to advertising the film, participation of stars includes Kate Winslet and Leonardo DiCaprio in the movie is necessary but costly. Horner wrote the soundtrack for Titanic that has become extremely popular and Celine Dion recorded the composition Heart Will Go On and it also became the important factor that contributed to the overall popularity of the movie (Allen, 2014). It is evident that all these people who worked for the film had to receive money for their services, even though there is no precise information about it in the public access. Investment Finding money for the production of Titanic was a challenging task for producers. 20th Century Fox studio asked for the loan that constituted almost 65 million dollars from Paramount Pictures that wanted to have the part of movie rights and to share the profit. It was the example of the co-financing deal that is rather popular in the production of movies in Hollywood (Allen, 2014). However, Titanic had an exceptionally big box-office after it was finally released, which proved its popularity. The movie made 2 billion dollars in the end and people who were working on the production of the film could not even believe in it. In fact, it was the financial success with the production budget that was 200 million dollars (Allen, 2014). This type of investments allows to decrease potential risks if the box office of the movie would not be sufficient for covering all expenses, which means that minimizing the risk of financial failure and finding the balance between making a good movie and saving money is important to investment of one film. Marketing Marketing is important in distribution of the movie. One of the evident examples that support this claim is the choice of the time when the movie will be shown in the cinemas. As a result, summers and Christmas holidays are considered to be the periods when people watch movies more and thus the chances for making the film popularity increases significantly (Allen, 2014). The analytics write that actions movies that have a big budget and thus have many special effects tend to become more popular during summer, since people had more free time and they were on holidays. This principle was also applied to the post-production of Titanic (Allen, 2014). It is possible to apply the same principles to starting of DVD selling campaigns and starting the broadcast on television. It is crucial to find the time when people are not busy at work and they have the required mood to watch the movie like Titanic. For example, it is the movie for adults, which means that it is better to show it on the satellite channel or on the TV channel in the late evening. Titanic was released according to the rather traditional scheme. The official date on which people could see the movie in the cinema was after the series of preview screenings that happened before the premiere. It allowed the film producers to see the reaction of the audience on Titanic and to make the prognosis concerning the potential success of this movie and its box office. Actually, the reaction of the audience showed that the movie would be paid off almost at once. In 12 days after the release in July, th e profit was more than 100 million dollars. The expenses were paid off in one month and the film grossed over 250 million dollars (Allen, 2014). Moreover, the international marketing is also important in making the production profitable. Titanic was released in other counties and in some of them the movie has become the real blockbuster. China was among such countries, and in the end of February 1998 the box office of the film was more than 1 billion dollars (Allen, 2014). Thus, the success of the movie depends greatly on international marketing and it is crucial to target not only domestic audience, but to reach people worldwide (Allen, 2014). Almost one year after the official release in the cinemas the company decided that they would start selling video versions of Titanic. The estimated profit from it was approximately 800 million dollars (Allen, 2014). The time was also chosen wisely, and the maximum of sales were on Christmas holidays, when people wanted to spend time at home, watching a good movie (Allen, 2014). the cable service of Titanic was two years after the cinema released and one year after the beginning of video sales. It was the optimal choice of the period during which the maximum of tapes would be sold. The rights for showing the movie were sold to Sky Box Office channel and to HBO America, which was also the part of financial pay off (Allen, 2014). Also, people had to pay for every time they watch the movie on Sky Box Office channel in April 1999. Only half a year later, in October, it became available on Sky Movies, it was the channel where people had the opportunity to watch Titanic by the subscription instead paying every time they want to watch it (Allen, 2014). After the first wave of popularity disappeared, the company started to release DVDs with directors cut editions and other special editions. This new perspective on the old popular movie has become the means that allowed the producers to increase the profits from video sales almost twice (Allen, 2014). Furthermore, the terrestrial premiere of Titanic in the United States was in 2000, because NBC bought the rights for showing the movie and the TV premiere was during the weekend on Thanksgiving (Allen, 2014), which leads to Titanic became popular again. All these examples show that the choice of releasing date and time is important in making the movie become successful. For instance, holidays and weekends were perfect time to watch the movie with family and friends. As the result, the producers of the film had a good revenue from selling licenses for broadcasting Titanic and for selling DVDs with the film. Advertising and Promotion The marketing of Titanic can be called the example of marketing in the post-production and thus it is possible to apply it to more modern movies. The producers of Titanic also used advertising techniques that are often applied nowadays. Among the widest spread and popular means of promoting the movie were TV advertising, trailers, posters with the faces of the main actors and the huge ocean ship in the background (Ulin, 2013), because all these things supported the public interest of people in this film. Another important way to promote the movie and to support the public interest in it was the public interview. The leading actors Kate Winslet and Leonardo DiCaprio became extremely popular at that time, and they were the guests in different TV shows and radio programs, their interviews were printed in the magazines (U lin, 2013), so the rising popularity of leading actors would help the film be successful. As it was already mentioned, the soundtrack of the movie has become iconic. The composition My Heart Will Go On has become popular as the separate song. It was not always associated with the movie, but its popularity and first places in the musical charts added publicity to Titanic (Ulin, 2013). Evaluation of The Movies Success It is possible to state that Titanic was obviously one of the most successful movies in the history of Hollywood. It was truly popular in the end of 1990s and there was the real rush about this film. The leading actors have become the stars, teenage girls wore t-shirts with printed posters of the movie, and it was possible to hear the main soundtrack of the film on every corner. Thus, it was not strange that the overall reaction of the public media was positive. It showed the attitude of the majority of people to this movie. Those people who did not like dramatic love stories simply did not watch it, while the others could not avoid mentioning the high professional level of the production. Conclusion On the stage of post-production, Titanic was considered by the investors to be extremely long and expensive. In fact, it is the normal part of the post-production period, when it is still impossible to understand whether the movie will become popular or not (Allen, 2014). There are no people who can predict that the movie will be certainly popular, because the film industry is full of unexpected circumstances because of nobody knows. However, movie production was on the highest professional level. Titanic has obviously become a very popular movie and it is possible to state that the finances that were used to produce this film were the key issue in making it the professional high-quality media content. As the result, its box office was many times bigger than the initial budget and more than James Camerons expectation about $400 million in box office receipts worldwide (Allen, 2014). Coordination of financing, production, and marketing has become the important component of the success of Titanic. All details like the time of release, advertising and promotion, and choice of stuff have come the part of this success.

The Obesity Of Child Obesity Essay - 1799 Words

The numerousness of child obesity in the US is at an unequaled high with about 33% of all kids and teenagers now viewed as overweight or fat (Ogden et al 2008). Impressive consideration has been centered on schools trying to distinguish approach levers that will switch the weight pestilence. Specifically, the accessibility of aggressive foods, characterized as nourishments and refreshments accessible or being able to buy in schools, outside of the school lunch and breakfast, has been a highly talked about issue. From one perspective, adversaries address the nourishing estimation of focused sustenance and think of them as the essential wellspring of junk in schools The candy machine organizations are not excited about conceivable limitations, contending that the candy machines are now loaded with healthy items and that those choices ought not be banned. we are somewhat worried that they may make the principles excessively stringent, said James A. 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Competitive Forces to Maximize Profitability - MyAssignmenthelp.com

Question: Discuss about the Competitive Forces to Maximize Profitability. Answer: Introduction: Banking has evolved dynamically over the years. The banking sectors stereotypical activities of Branch Banking and Corporate Finance are being replaced by retail and technology based channels of delivery(Bhattacharya, Basu, Deivikaran, Shaikh, 2006 - 07). CBA takes its place among the top four bank of the country along with National Australia Bank, ANZ and Westpac. It has its headquarters are in Sydney. It employs 51,800 employees over 11,000 branches. It has a customer base of 16.6 million(Corporate Finance Institute, 2016). It was founded by the Australian government in 1911 and listed in the Australian Securities Exchange in 1991. Its privatisation occurred in the year 1996 (Austalian Financial Services Directory, 2018). There are a wide range of functions that CBA performs which include corporate financial services, various types of loans and credit services, wealth management, retail and business banking, institutional banking, investment advisory services, insurance, share broking products/ services, security services, superannuation and many others(Austalian Financial Services Directory, 2018). Segmenting, Targeting and Positioning (STP): STP strategic approach plays an important role in the modern marketing and is widely accepted and used(Hanlon, 2017). It is an audience-oriented approach rather than product-oriented. It helps to identify, classify and focus on the target audiences separately. It separates the market based on certain common characteristics for the ease of marketing. Segmentation could be done on various grounds like: Demographics Geography Psychographics (Hanlon, 2017) Services Provided After having identified and classified various potential markets, targeting is done. Potentiality of each market is assessed along with its commercial attractiveness. One or more suitable markets/ segments are chosen to supply the goods and services. Potential and commercial attractiveness of each market can be assessed by the following (Hanlon, 2017): Size of each market Each markets accessibility Costs and profits associated Variations in markets Other benefits (if any) Positioning is the final step in which different products to be supplied are identified in each market. It caters to the needs of different segments or markets. Each market is supplied commodities as per their requirements. A separate marketing mix is identified and developed in each segment. Positioning is often done to keep up its market position and sustain in the line of business. STP in Commonwealth Bank of Australia: Geography: It has its branches across nations like New Zealand, USA, United Kingdom, Asia and Fiji(Austalian Financial Services Directory, 2018). Services provided: CBA provides various loans and credit services, wealth management, retail and business banking, institutional banking, investment advisory services, insurance, share broking products/services and security services. Demographics: CBA not only targets young and middle-aged people, but also extends its facilities to the old-aged and specially-abled group of the society. CBA targets both individual customers as well as big corporate houses. On the basis of segmentation; it provides personal banking and individual loans, corporate banking and loans, investment, institutional financing, retail banking, business banking and share broking. CBA conducts many Corporate Social Responsibility (CSR) activities and provides innovative products and schemes to keep up its positioning. It takes up many opportunity initiatives towards the society, community and education(Commonwealth Bank of Australia, Oppoutunity Initiatives, 2018). It operates in various local areas of Australia for the sustainable social growth(Commonwealth Bank of Australia, Opportunity Initiatives Brochure, 2017). It works with conduct code of highest levels and increases its accessibility by making the banking process easier(Commonwealth Bank of Australia, Customer Commitment, 2018). Product v/s Market orientation: Product orientation refers to the production where the firm makes and supplies the best quality product; and the market falls for its quality. It does not take into account the needs of the customers. On the other hand, market oriented production refers when the firm analyses the markets hidden needs and supply the products accordingly. Production in this case is based entirely on the needs of the consumers(Kokemuller, 2018). CBA is both product as well as market oriented. It conducts surveys throughout the year to analyse the market requirements and then provide products and services accordingly. It invests in the consumer feedback to improve the products as per the requirements. CBA on the other hand also tries to give services of the best quality to attract the new customers as well as maintain the old ones. Value proposition refers to the innovative bundle of benefits, the firm has promised to deliver to its customers. It acts as a tool which differentiates one firm from the others. It is thus important to weigh the value propositions as per the price premium (Kotler, Keller, 2012). CBA not only provides banking but other services like insurance, investment advisory, broking products and services, various schemes on purchase through debit and credit cards, and superannuation. It launched a campaign called Determined to be different, in 2008. Customer satisfaction surveys are conducted to meet the growing needs of the customers. Ambidexterity is attained by providing high-quality services at reduced costs and increased productivity(Trevelyan Howard, 2011). CBA publicises with innovative and creative advertisements, specifying the customer needs and the offerings of the bank, for the globally diverse customers(Strategy, 2016). CBA also extends its services to the old-aged and specially-abled section of the society by handling clients personally and being accessible. It also organises and sponsors many events and cricket matches for men as well as women. CBA also values the growth of its employees through human resource development. It targets competence, technical capacity, leadership quality and personal behaviour(Commonwealth Bank of Australia, Employee Value Proposition, 2017). It promotes performance culture; provides loan benefits, health insurance, pension funds, reward programs, employee discounts along with regular salary and bonuses. Customer need, want and demand: A rational customer wants high quality product with moderate prices. There are three types of customers- brand loyal, connoisseurs and bargain hunters. CBA thus, needs to cater to requirements of all the sections(Commonwealth Bank of Australia, CommBank Retail Insights, 2017). It may be through different schemes for different groups or by having a moderate one that caters to all. Customers choose the banks which provide them low rates of interest on loans and high rates of interest on deposits. It also has simple-to-comprehend policies, customer support services, net-banking, good location and other after sales services(BAI Research Study, 2012). Today, banks also provide schemes and offers on purchase through debit/ credit cards Customers search for factors like convenience, distance, facility of internet banking and customer support services from a given bank. Also, they compare the prices, quality of services, interest rates, security of assets, collateral requirements and technology before the purchase(Wee, Shie, Cong, Ying, Hou, 2015). The purchasing power, economic conditions, group influence, personal preference and marketing campaigns also play an important role in the decision making. Commercial banks competitive nature depends on the size of the capital and the deposits mobilized by it. It is also based on the ability to realise the obligation of deposits and the other services offered. In case of investment banks, the nature of the competition depends on the type, cost and flexibility of the services provided. It is also affected by the reputation of the bank and its client base. CBA is a multi-service provider and hence covers the both. It is important to identify the opportunity and increase the investment in technology and human resource development. Innovation can also be in the fields of cost reduction, processing and income generation capacity. It is important to increase the customer base for long-term growth of CBA. Innovative marketing strategies can also be adopted for the same. Market Positioning Strategy: Market positioning strategy is a concept of marketing in which the product of marketing strategy is defined. The aim is to create an image of the product, highlighting the needs of the customers. It is basically done with the help of pricing, placing, promotion and product. It highlights the strengths and differentiates it from the others. CBA had an income of US$19.52 billion in 2016, making itself the market leader. While its followers ANZ bank, NAB and Westpac had an income of US$4,106 million, US$5,144 million and US$8,161 million respectively in the same year(Corporate Finance Institute, 2016). CBA needs to make strategies for increasing market share and reducing costs. It needs to innovate constantly with products and techniques to attract people. Also, it needs to keep note of the strategies of the competitive firms and modify the prices accordingly. Different distribution channels focusing on time and place advantage can also be adopted along with advertisements. Market nichers provide highly customised commodities, which are not otherwise readily available. They focus on a specific segment of the market. These could be the banks catering to small sections of the society. Micro-finance banks like Good Shepherd and Grameen Australia are market nichers. It is a model given by Michael Porter to determine the industry structure with the help of five forces(Juneja, 2018). The stronger the fives forces, lesser attractive the market is and lower is the profitability(Strategic Management Insight, 2013). It helps establish the necessary strategies to enter the market as well as to sustain in it (Mind Tools, 2018). As the firms grow, they need to discover and make use of the new opportunities in the market. Today, it is a matter of differentiation on the basis of new service models rather than new products. Thus, Porters five factor model can be established in the operational strategy(Fuller, 2013). The model is used to find the level of competition and the profitability associated, with the following five forces: Bargaining power of buyer: Given a good bargaining power, a customer is able to extract higher quality products and lower prices from the producers. This increases the costs to the producers and lowers the profitability(Strategic Management Insight, 2013). It depends on factors like: Buyers in the market Buyers size Order size Cost of switching Substitutes availability Price sensitivity of demand Threat of backward integration Bargaining ability of suppliers: Unlike the buyers bargaining power, this force allows the producers to supply high-priced or low quality products to the consumers. Suppliers increase the profits of the producer by lowering the costs of inputs. Strong suppliers have the ability to increase the costs of firms in the industry. Buyers do not possess a serious threat in the case of strong suppliers. There exists a threat of forward integration. Factors influencing this are: Suppliers in the market Size of the supplier Ability to find substitutable inputs Scarcity of the inputs Cost associated with switching Forward integration threat Threat posed by substitutes: Substitutes have the ability to put an upper limit to the price of the commodities(Juneja, 2018). It reduces the returns from industry. The higher the number of substitutes, the lower the profit margin because the buyers can switch to the closer substitutes with a lower price or better quality. Substitution possess a threat on the following terms: Availability of close substitutes Cost of switching Quality of the substitutes Risk of entry posed by potential producers: Potential producers are the ones, who are not in the same business line currently, but may enter if given an option. If the entry is free, the potential producers may enter and increase the competition. This can lower each firms market share. To sustain in the competition, the costs have to reduce. This force is closely linked to the entry barriers like: Economies of scale Loyalty towards the brand Government Regulations Absolute Cost Advantage Strong Capital base(Juneja, 2018) Rivalry amongst the current competitors: High level of competition establishes a threat to the profits of the firms(Strategic Management Insight, 2013). The strength of rivalry can be expressed as a function of: Number of exit barriers Fixed cost prevailing in the market Global customers Presence or absence of switching costs Industrys growth rate On the basis of the above points, for an industry to be favourably competitive and profitable; it must have lower bargaining power of buyers and suppliers. There should be barriers of entry, fewer close substitutes present and lower level of competition in the market(Strategic Management Insight, 2013). Application in Commonwealth Bank of Australia: The model has a holistic approach which refines the strategy and the position of the firm. It can help CBA build a long- term sustainability and competitive advantage(Fern Fort, 2018). Bargaining ability of buyer: Buyers pressurise CBA to lower down the interest rates and its profits. The size of the customer base is negatively related to the bargaining power of the buyers. Increasing the customer base will be beneficial, both in terms of lower bargaining power of customers and by increasing the economies of scale. New and innovative products can also reduce the bargaining power of the customers and prevent the withdrawal of the old customer(Fern Fort, 2018). Bargaining ability of suppliers: Strong suppliers are responsible for decreasing the profit margins of CBA. When there is competition among the suppliers, their prices reduce and so does the bargaining power. This can be avoided by having large number of suppliers in the supply chain. Innovation with the products using various materials, lower the risks at the time of price rise inputs. Threat posed by substitutes: Fewer substitutes are favourable to CBA. To avoid the problem, CBA can be service orientated. Innovation and customisation in services is more sustainable. Increased cost of switching is another factor. Risk of entry posed by potential producers: This acts as a threat to CBA because of its innovation. Lower costs and higher value propositions are tools to attract the customers. When the entry is restricted, the competition in the industry decreases. The prices can be lowered by adopting the economies of scale and increasing its customer base. Innovation is the key to sustainability. Investment in research and development is important to build higher capacities with lower cost and increased product value. CBA often revises its standards which reduce the scope for super-normal profits in the industry(Fern Fort, 2018). Rivalry amongst the current competitors: Banking is a very competitive industry with fierce rivalries. This, therefore, affects the profitability of CBA in the long-run. The level of competition is dictated by the policies and regulations of the government. It benefits CBA when the policies are stringent and the competition is limited(Fern Fort, 2018). The key is to have sustainable differentiation. Collaborations and mergers are also an option to decrease the competition. Bibliography Austalian Financial Services Directory. (2018). Commonwealth Bank of Australia. Retrieved February 28, 2018, from https://www.financedirectory.net.au/commonwealth-bank-of-australia-7.html BAI Research Study. (2012, March). The New Banking Consumer:5 Core Segments and How to Reach Them. Retrieved March 02, 2018, from BAI Research Study: file:///C:/Users/%234079/Downloads/2021043_1630532288_TheNewBankingConsumer5CoreSegm.pdf Bhattacharya, D. K., Basu, S. A., Deivikaran, P. M., Shaikh, P. L. (2006 - 07). Retail Banking in India - Opportunities and Challenges A Macro Level Research Project 2006 - 07. Retrieved March 01, 2018, from Indian Institute of Banking and Finance, Mumbai: file:///C:/Users/%234079/Downloads/2021042_815191419_Report-13.pdf Commonwealth Bank of Australia. (2017). CommBank Retail Insights. Retrieved March 05, 2018, from Commonwealth Bank of Australia: https://www.commbank.com.au/content/dam/commbank/business/pds/retail-insights-report-edition-3.pdf Commonwealth Bank of Australia. (2017). Employee Value Proposition. Retrieved March 05, 2018, from Commonwealth Bank of Australia: https://www.commbank.co.id/upublic/mod_home/default_content.aspx?code=career_evp Commonwealth Bank of Australia. (2017). Opportunity Initiatives Brochure. Retrieved February 28, 2018, from Commonwealth Bank of Australia: https://www.commbank.com.au/content/dam/commbank-assets/about-us/2017-10/cba-opportunity-initiatives-brochure-november-2017.pdf Commonwealth Bank of Australia. (2018). Customer Commitment. Retrieved February 28, 2018, from https://www.commbank.com.au/about-us/who-we-are/customer-commitment.html Commonwealth Bank of Australia. (2018). Oppoutunity Initiatives. Retrieved February 28, 2018, from https://www.commbank.com.au/about-us/opportunity-initiatives.html Corporate Finance Institute. (2016). Top Australian Banks. Retrieved March 06, 2018, from Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/careers/companies/top-australian-banks/ Fern Fort, U. (2018). Commonwealth Bank Of Australia- Porter Five Forces Analysis. Retrieved March 03, 2018, from Fern Fort University: https://fernfortuniversity.com/term-papers/porter5/asx/17-commonwealth-bank-of-australia-.php Fuller, P. (2013). The Importance of Porters Five Forces. Retrieved March 03, 2018, from Thomson Reuters: https://legalexecutiveinstitute.com/wp-content/uploads/2016/05/The-Importance-of-Porters-Five-Forces.pdf Hanlon, A. (2017). Smart Insights. Retrieved March 01, 2018, from https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-targeting/segmentation-targeting-and-positioning/ Juneja, P. (2018). Porters Five Forces Model of Competition. Retrieved March 03, 2018, from Management Study Guide: https://www.managementstudyguide.com/porters-model-of-competetion.htm Kokemuller, N. (2018). Difference Between Marketing Orientation Market Oriented. Retrieved March 05, 2018, from Chron: https://smallbusiness.chron.com/difference-between-marketing-orientation-market-oriented-14387.html Kotler, P., Keller, K.L. 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InterCleanâ€EnviroTech Merger an Example of the Topic All Posts by

InterClean–EnviroTech Merger InterClean, a cleaning and sanitation company, aims to be the dominating force in the industry. In line with this vision, it has recently acquired EnviroTech, and is moving towards changing its focus towards providing a complete solution and service. This paper will discuss the problem that InterClean faces in joining the sales team of both the companies, and how to overcome them. Need essay sample on "InterCleanEnviroTech Merger" topic? We will write a custom essay sample specifically for you Proceed The Problem InterClean realizes that it can only achieve its goal only if it has the right employees. When a skills inventory was taken, it was found out that InterCleans employees have not continued their education, which may hamper the new vision. In contrast, the employees of EnviroTech seem to have the required skill set that InterClean needs. Their employees have developed themselves both academically and professionally. Hence, the dilemma of InterClean is related to training. Solutions As the skill set of the merging sales team vary considerably, InterClean needs to provide the best training. The cost and the timeframe for the training will be challenge, but InterClean will have to endure it to achieve its vision. One way to provide training is to through cross-functional teams. Cross-functional teams comprises of people from different departments and divisions, which helps in employees to handle more responsibilities. Cross-functional teams are known to improve job satisfaction, increase productivity, and improve an organizations ability to solve problems (Reilly & Williams, 2006). Another solution to this problem is to retain only those employees who have the desired skills and knowledge. This might mean that almost all of the InterClean employees will have to laid off. Retaining the employees with the desired skills and knowledge will help with the overall process of aligning staffing with the strategic goal of InterClean because the employees retained will have the skills desired. In addition having the right employees will have a major impact on whether or not InterClean will be an industry leader or just another sanitation company. Risk Assessment As with most acquisitions or mergers, the acquisition of EnviroTech might call for a reduction in the workforce. The consequences of layoffs can lead to a drop in employee morale. Downsizing can also have a negative impact on the image of the company. HR along with management will need to effectively communicate the need and reason for layoffs to both the employees and the public. (Schuler & Jackson, 2007). HR will need to have a sound plan to determine which employees will be retained and which will be let go. Some employees may not agree with or accept the changes which may lead to disagreements among coworkers. The need for change will need to be shown to the employees. (Schuler & Jackson, 2007). Training management and employees can be costly and timely which can lead to a decrease in sales and productivity. The leadership team and HR will need to develop a training plan that includes a budget and a timeline. Another risk in training employees is that some employees may not be satisfied with their job, or are not motivated to learn which will negatively impact the training experience. Trainees reports of satisfaction with training may not be directly related to whether training took place, but it probably is the case that when satisfaction is low, high degrees of attention and subsequent learning are unlikely. (Reilly & Williams, 2006) Negative attitudes and distrust of management by employees will further sabotage the companys strategic goals. Management will need to communicate to employees, especially its high performers that training on the new sales model will increase their value to the company. In addition, HR can help in boosting the morale of the employees by offering employees counseling and surveying employees to find out their questions and concerns. (Schuler & Jackson, 2007). Implementation The first step InterClean will need to take will be to update the HR system to align with the new strategic direction of the company. By doing this HR will better to be able to select the employees who will help InterClean achieve its goals. In addition this will also help HR decide what tools to use when recruiting and hiring employees. Knowing the direction of the company will help HR decide whether they should use Interviews, work sample tests, cognitive ability tests, recruits from elite colleges, or a combination of methods (Schuler & Jackson, 2007). Once the HR system is updated and aligned with the organization, the next step will be to align the employees to coincide with HR and the direction of the company. All the employees of InterClean and EnviroTech will be reviewed, and then it will be decided which employees will be retained. Once this is determined the management team will communicate the decision and the reason behind the decisions to employees. Counseling will be offered to those employees who will be laid off and an exit plan for these employees will be implemented. In addition a survey will be given to employees who will remain with the company to address any questions or concerns they may have regarding the new direction of the company. Once HR and staffing are aligned with the organization, training will need to be implemented. Due to the likelihood of a tight training budget, InterClean may want to consider training management on how to implement the changes and in turn have managers train the employees. Training employees is a very important step that must be successfully completed in order for InterClean to reach its goals. All this time, the communication within the company should be clear and consistent. As a result InterClean will inform all of its employees that a change is going to happen. (Reilly & Williams, 2006) References Reilly, P., & Williams, T. (2006). Strategic Hr: Building the Capability to Deliver. Hants, England: Gower Technical Press. Schuler, R. S., & Jackson, S. E. (2007). Strategic Human Resource Management (2 ed.). New York, NY: Wiley.