Malaysias Luxury Goods Sector

Malaysias Luxury Goods Sector Chapter 1: Introduction 1.1 Introduction In the 80s, luxury goods that used to belong to the upper class became visible, recognizable, and accessible to the public. Hence, the market for luxury goods went through an enormous demand growth spurt, and developed into a significant economic sector in the 90s (Roux and Floch 1996). Louis Vuitton reported sales of nearly 2.5 billion Euros, increasing its net income by 80% between 2002 and 2004 (LVMH 2005). LVMH Moà «t Hennessy Louis Vuitton, the worlds leading luxury group, achieved revenue of 4 billion euros in the first quarter of 2008. Organic revenue increased by 12% compared to the same period in 2007, which was also a period of strong growth. As a result of the negative impact of exchange rates, reported revenue growth is 5%. All business groups recorded double-digit organic revenue growth in the period, with the exception of Wines Spirits. The Group continued to record excellent performances in Asia, the US and Europe. A good attains the label â€Å"luxury† when it has the particular design, quality, performance or durability that is remarkably superior to the comparable substitute. Luxury goods have a lot to do with the consumers psyche and how it makes the person feel. In generally, luxury goods are considered to be the highest quality, and price in the market. Brand consciousness among the Malaysian society has been increasing over the past few years, especially with the young generation who are now appetite for the luxury goods and brands especially from college, university students and young working adults. The population of the youth for aged between 20 and 29 aged is 20% which nearly make up the entire population in Malaysia. Understanding the consumer behavior in this age group would be pivotal in ensuring luxury brands can better position themselves in the market and will be useful in marketing building brands. It makes good reason that research on the factor influences generation Y on the purchasing decision of luxury goods. 1.2 Background of Research â€Å"Asia is considered by many international brands as a major sales region, with the improving personal financial status of Asian consumers and with the opening up of various developing markets, there is huge room for growth in the luxury sector,† said Karen Watson, Chief Communications Officer, ACNielsen Company(Consumer and Designer Brands , April 2008). In Malaysia, the luxury goods sector has been growing along with the rest of the world over the past ten years. We can see that some of the shopping complex such as Kuala Lumpur City Center (KLCC) Mall that sell luxury goods and for up market. Over the years, the setting up for the up market such as Pavilions, The Garden and Star Hills have catered to the increasing demand of luxury goods. â€Å"In Malaysia the apparel industry has undergone great transformation with more and more brands entering the market, and the recent past years have seen the entry of numerous international brands. The apparel industry is worth RM 3.26 billion (approximately USD 1.1 billion) (Protà ©gà © Associates‟ Independent Market Report (2007)† (Khan and Khan, 2008) The study on consumer behavior in relevance to luxury goods has gained a lot of interest over the course of the decades. Early research on a framework to define luxury and that of luxury seeking consumers started in the 19th century by Rae (1834). The early research was showed that a summary of the luxury seeking consumer behaviour which can be seen by Vigneron and Johnson (1999) where the values are conspicuous, unique, social and quality. Conspicuous and quality could be seen in the summary luxury seeking framework by Vigneron and Johnson (1999) who presented the luxury value perceptions., It has been stated as the notion of â€Å"buying to impress others† by concerning the motives for consuming luxury goods (Wiedman, Hennigs, Siebel, 2007). Other researches were instrumental on other factors which influence purchase decisions, Khan and Khan (2005) provided the result by showing how reference groups influence on purchase decisions. It focuses on reference groups which are groups that individuals refer when making a purchase. From a consumer behaviour perspective, reference groups are important because they inform and make individuals aware of specific products and brands; provide individuals with opportunities to compare their own thinking with the attitudes and behaviour of the group; and influence individuals to adopt attitudes and behaviour that are consistent with the norms of the group (Khan and Khan, 2005). Aesthetics appeal on purchasing decision also gained the attention of the researchers. Researchers such as done by Virginie, Irina and Pierre (2009) and Dubois, Laurent, Czellar (2001) influence the purchase decision on luxury goods. 1.3 Research Question Most of the consumers purchase the luxury goods for one of the following reasons. Purchasing decisions could be influence by the social factor example noted by (Khan and Khan, 2005).Other factors that should be taken into consideration include brand image, conspicuous and quality value which effect the purchase decisions before making the purchase. Aesthetics are also playing a crucial role influence on purchase of luxury goods Based on the Literature Review in Chapter 2, which provides a detailed look at all the factors and variables above, the research questions at hand has to do with the present variables and the purchase decisions. The questions addressed in this research are: What are the critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) influence generations Y in purchasing decision of luxury goods in Malaysia? Is there any interaction between critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) and generation Ys purchase decision on luxury goods in Malaysia? How the critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) have impacts on generation Ys purchasing decision on luxury goods in Malaysia? 1.4 Research Objective This study aims to address the following objectives of the study: Main Objective: To determine and identify the factors influence generation Y in purchasing decision of luxury products in Malaysia. Specific objectives: To identify the critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) influence generation Y in purchasing decision of luxury products in Malaysia. To determine relationship between critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) and generation Ys purchasing decision of luxury goods in Malaysia To determine the effect of critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) on purchasing decision of luxury goods in Malaysia. 1.5 Significant of the Study The luxury goods market is growing rapidly and it is important for research to be done to understand the factors and variables that influence Generation Y purchase luxury goods in Malaysia. The research is important for a number of reasons. The factors influence purchasing decision or consumer behaviours toward luxury goods research has been done in American, Europe or Asia but there is a lack of research regarding purchase decisions on luxury brand products in Malaysia. The only research has been done was by Khan and Khan (2005). The research was about the gender differences in the purchase of luxury goods and covered with social influences and marketing influences. 1.6 Scope of the study In this research, the research will be conducted under the scope of the purchasing of luxury goods. The research will investigate the factors that influence the generation Y in purchasing decision of luxury goods in Malaysia. This research is going to focus on generation Y which includes males and females in Malaysia. The age the range of this research on generation Y between 20 to 29. This group of generation Y was chosen because they are college students, university students and young working adults. They are the consumers that showing the greatest purchasing power in the luxury goods market. Questionnaire will be given to the generation Y to know the factors that influence them in purchasing decision on luxury goods. 1.7 Organization of the Research Project The outline of this thesis can be divided into three main parts. Chapter 1 would be the introduction to the paper, where an understanding of the luxury goods market would be presented, along with the trends the market is heading. A background of the study is also provided, citing the work done by past researchers and their findings. This chapter also provides a clear understanding of the problem statements as well as the objectives of this research paper. Chapter 1 would also justify the need for this research to carried out and provide a summary of the research methodology used to carry out the survey. Chapter 2 would provide a review on the findings and results of past researchers. Chapter 2 titled literature review would be the assessment on research topics of interest to the researcher, such as topics concerning the factors that influence the purchase of luxury goods. Factors or variables that are being discussed in this chapter include the social influences, perceived conspicuous value, perceived quality value, brand image and aesthetics Onwards to chapter 3 which is titles research methodology, this chapter would detail the relationships of all the variables present with the theoretical framework. The development of the research hypotheses would also be presented in this chapter along with the sampling design and procedures that would be used in the data collection process. Chapter 3 would then round up by pointing out the methods that would be used for data analysis as well as the variety of tests that would be used to test the hypotheses. Chapter 4 is the â€Å"Data Analysis†, presents and analyses the raw data collected from the survey. After that, SPSS (Statistical Package for Social Science) will be used to present the most accurate statistic data and graph. Chapter 5 explains the outcomes of the testing of the hypotheses determined from Chapter 4: Data Analysis. The acceptance or rejection of the hypothesis is discussed as well. Additionally, the concluded results of the hypothesis testing from this study are compared with results from previous researches to identify the differences and similarities. 1.8 Conclusion This chapter has laid the foundation for the entire research. A background of the study was also given to show the progress made by past researchers on the topic at hand. An understanding of the luxury goods industry was presented along with the research questions and objectives this research intends to meet. Thus, the research question, research issues, limitations of the research and outline of the research have been presented, which will provide a guideline for the research. The above information can work as a base and lead into the detail interpretation on the research afterwards. Chapter 2: Literature Review 2.0Definition of Luxury Goods The word ‘luxury can be defined as state of life in which has uses things that please the senses or pleasing to have but not essential. â€Å"A good attains the label as a â€Å"luxury† when it has a particular design, quality, performance or durability that is remarkably superior to the comparable substitutes† (Snapshot of U.S Luxury Good Market, 2007). Dubois, Laurent and Czellar (2001) and Survanasuddhi (2007) stated a definition of the nature and characteristics of the concept of luxury. The six facets are excellent quality, very high price, scarcity and uniqueness, aesthetics and polysensuality, ancestral heritage and personal history and superfluousness. Luxury goods are rising in popularity especially as consumers buying behavior is becoming more symbolized. Consumers feel that by owning luxury products can express their personality and set them apart. Thus, â€Å"luxury goods have been defined as goods for which the mere use or display of a particular branded product brings prestige on the owner, apart from any functional utility† (Nia and Zaikowsky,2000) The term ‘prestige was defined as it consists of consumers motivations for chasing technical superiority, uniqueness, signaling wealth and status well as aesthetics appeal (Vigneron and Johnson, 1999). ‘Prestige and ‘luxury are used synonymously in the VIgneron and Johnsons research. Vigneron and Johnson (1999) categorized three types of prestige brand as upmarket brands, premium brands and luxury brands, respectively in an increasing order of prestige. Hence, it was expected that people would have different perceptions of the level of prestige for the same brands, and that the overall prestige level of a brand would consider the prestige perceptions from different people. â€Å"Luxury brands can be described as premium priced brands that consumers purchase for their psychological values (symbolic and hedonic), and not predominately for their economical and functional value† (Nueno and Quelch 1998; Stegeman, 2006). However, the definition of luxury goods or brands cannot be fully recognized. The definition of luxury will be different and may not be the same for another researcher. Chadha Husband (2006) definition limits itself in that it only pertains to luxury fashion goods instead there are other luxury goods that are also both universally available and accepted as luxury. The definition of luxury brands have been defined as fashionable and high quality consumers goods made by reputed luxury brands which contained wearable fashion goods such as handbag, wallet, shoes and belt (Chadha and Husband, 2006; Heinemann, 2008). Fashion can be reflection of the social, economic, political and artistic forces of the time. Accoding to Gao, Norton, Zhang, To (2009), â€Å"luxury fashion goods are apparel, accessories, handbags, shoes, watches, jewellery, and perfume for which use or display of particular branded products brings prestige to owners, apart from any functional utility†. Snapshot of U.S Luxury Good Market (2007) stated fashion group represent the major product sector in the luxury goods market. It is important to know that the survey showed that â€Å"one sixth (16%) of the worlds consumers claim to buy designer brands† (ACNielsen, 2008). For this research, the term luxury goods can be defined as the brands that are defined as luxurious in the annual â€Å"Consumer and Designer Brand Report 2008† by the global Nielson firm which the survey is the largest and it identified the following goods as the luxury fashion goods. Calvin Klien Giorgio Armani Celine Ralph Lauren Louis Vuitton Ferragamo Diesel Burberry Chloe Chanel Versace Marc Jacobs Christian Dior Prada Gucci Givenchy DKNY Emporio Armani Valentino Hermes Fendi Yves Saint Lauren Max Mara The fashion goods that show above are not the only goods that are stated as luxury in this research. Consumers allow to evaluate and include other brands which they think is luxury fashion goods for them. Furthermore, there are many opinions and views of luxury from different leaders viewpoint stated in KPMG research (Managing Luxury Brand Growth, 2006). Luxury is explained in the table below as following: Leaders Name and Company Definition 1. Guy Salter Private Investor, Deputy Chairman of Walpole, the British Luxury goods organization Because luxury matters in a way that didnt matter before. Increasingly, luxury is big business: the luxury segment is growing and according to most projections it will continue to grow for the next ten to fifteen years. 2. Belinda Earl, Jaeger Groups chief executive Jaeger is a luxury British brand renowned for designing stylish, innovative and superb quality womenswear, menswear and accessories. None of us are in the business selling necessities; luxury is the business of creating and satisfying desires. 3. Richard Purdey of gun makers James Purdey and Sons Famous British gun maker of London, and the name is synonymous with the very finest sporting shotguns and rifles. Purdeys hold or have held numerous warrants of appointment as gun and rifle makers to the British and other European royal families. A real luxury brands has got to have total integrity. It has to be the buyer that says ‘this is luxury. 4. Theo Fennell Theo Fennell is the jewellery maker by using his name for his company ‘Theo Fennel in London Luxury is something that everyone wants and nobody needs. 5. Joseph Wan of Harvey Nichols CEO of retailer Harvey Nichols Harvey Nichols is an international luxury lifestyle store, renowned both in the UK and internationally for the breadth and depth of its exclusive fashion merchandise. It offers many of the worlds most prestigious brands in womenswear, menswear, accessories, beauty, food and home. Luxury is about history. A luxury brand is a lifestyle concept and to be sustainable it has to have history, including a history of quality merchandise and of real luxury customers.. 6. Raphael le Masne de Chermont, of Shanghai Tang Executive Chair of Shanghai Tang Shanghai Tang is the first luxury brand emerging design from Chiana It is not in the price, it is in the pleasure you give to the customer. It is to do with creativity, a harmonious aesthetic with attention to details. 7.Christian Hafner Head of Branding at Swarovski Luxury is about history, authenticity, depth and being a partner. Buying a luxury product is like a love affair. 2.1Generation Y Generation Y are also referred as the Millennial Generation or Generation Next or Net Generation describes the demographic cohort following Generation X. Its members are often referred to as Millennials or Echo Boomers. According to Shareef Mahdavi (2008), Generation Y is the term used to describe children of the Baby Boomer generation, typically born between 1977 and 1995. McCrindle (2008) described the generation Y born in between 1980 and 1994. They are also referred to as ‘Millenials and ‘Echo Boomers in the western society, especially American Society. Generation Y are individuals who born between 1977 to 1994 that have a free spending spirit and consist of 71 million 8 to 25 year olds (Horovitz, 2002; Sriviroj 2007). The wealthiest groups of people are between the ages of 19 to 25 year olds who are either employed in full time jobs or part time work even though there are group amount of generation Y consumers. The greatest purchasing power in the Generation Y college student takes place within the part-time student, who spends over $400 monthly on discretionary purchases while often maintaining full-time employment (Gardyn, 2002). Those who are either part time or at full time work are college students (Martin Turley, 2004). Students always work as part time work to find extra funding for their excessive spending during the university hopdays or breaks. There are average 80% of students attending college or university are employed (Martin Turley, 2004). The financial knowledge of the average Generation Y consumer also earns them the awareness and respect of marketers even though their spending power alone is enough reason to pay significant attention to this group of consumers. The financial knowledge of the average Generation Y consumer also earns them the respect of marketers today. Generation Y consumers have a remarkable amount of disposable income due to the increasing of greater level in the economy over the past decade (Martin Turley, 2004). Besides that, the research suggested that â€Å"Generation Y has more discretionary income than the previous generations and prefer to spend it on themselves rather than others. A reason for this may be because they are starting families later in life and therefore are able to spend their income on themselves without having to worry about others† (Angela Hughes, 2008) The important of this group of consumers has taken on the greater level of meaning for marketer. â€Å"While the Baby Boomers grew up with television advertising influencing how they were marketed to and how they bought products, Generation Y has many different mediums that they grew up with, which is what makes marketing to them so much more difficult† (Angela Hughes, 2008). Marketers are playing the large part influence consumers behaviour through the knowledge of fashion. The reason is that teenagers are concerned about fashion value more than any other age groups (Koester and May,1985; Sriviroj 2007). One of the most influencers is the media because of media consist of a wide range of technology such as television, internet, mobile phone and DVD. (Angela Hughes, 2008, Sriviroj 2007). The internet has permanently changed the way that this generation shops by giving the information about products than the companies give the consumer. According to Angela Hughes (2008), he in ternet is also a powerful tool for this generation in spreading opinions about products to their peers. The largest differences between Generation Y and those that preceded them are Generation Ys tremendous awareness and confidence. Generation Y is more likely than any previous generation to look up information before purchasing a product. Generation Y is more desirable to own the products that they know their peers will accept just to show they are part of the group. On the other hand, in the research of Sriviroj (2007) stated that television is strongly influence these generation which affect them as they will reflect their perceptions in â€Å"reality† as they have seen in television world. â€Å"Of the paid advertising channels of online, outdoor, newspaper, magazine, radio, TV and Theatrical, TV and newspaper are the most trusted media† (Nielsen Global Online Consumer Survey, 2009). â€Å"Generation Y is poised to take over as the largest and most lucrative consumer group for marketers, a position that has long been held by the Baby Boomer generation† (Angela Hughes, 2008). In order to understand the generation Y consumers, it is important to think about factors that motivate these individuals towards the purchasing of luxury goods. 2.2 Social Influence Previous research shows that group influences play an important role in influencing the purchase decisions (Brinberg and Plimpton, 1986; Martin and Bush 2000; Mascareches and Higby, 1993). The group members have been recognized as determinant of behavior. The fact that the people act in accordance with a frame of reference produced by the group to which they belong is a long accepted and sound premise (Merton and Rossi, 1949). However, many individuals did not behave like the majority of people in their recognized group (e.g., social class or educational level).The casual observation showed perplexing contradictions between group membership and behaviors. According to Merton and Rossi (1994), â€Å"a partial solution was found in the concept of â€Å"reference group†, which recognizes that people frequently orient themselves to other than membership group in shaping their behaviors and evaluations and that reference groups can perform a diversity of functions.† Reference groups are generally defined as â€Å"actual or imaginary institutions, individuals, or groups conceived of having significant relevance upon an individual‟s evaluations, aspirations, or behavior† (Lessig and Park, 1975; Pertina, Prybutok, Zhang, 2008). Besides that, reference group also can be defined as â€Å"a group of people that significantly influence an individuals behavior† (Bearden and Etzel, 1982). Reference group are important because they make the individual aware to a specific goods or brands and influence individuals to adopt attitude and behaviour that are consistent with the norm of the group. The normative and informative social influences are the most widely accepted influence. Normative social influence is based on the tendency to conform to the expectation of others while informational influence is based on the desire to make informed decisions and optimize the choice (Stephen Yang and He, 2009; Khan and Khan, 2005). Berden and Etzel (1982) examined that the reference group influence by product and the brand purchase decision. Previous research studied group influences in marketing strategy and consumers purchasing behaviour. Specifically, three types of group influences are studied which is information, utilitarian and value expressive influences (Stephen Yang and He; Bearden and Etzel, 1982; Makgosa and Mohube, 2007; Pertina, Prybutok, Zhang, 2008). Informational influence is reflected when an individual perceives enhancement of knowledge and ability to cope with environment when using information from opinion leaders, experts, or product users. Utilitarian influence manifests through the process of compliance with those who can exercise reward or punishment power. Value-expressive reference group function is based on the identification process whereas an individual who associates oneself with a group to enhance self-concept adopts this groups consumption patterns. Reference groups have been found to specify what the desirable and undesirable goods are (Bristol and Malengburg, 2005; Khan and Khan, 2005). Many researchers have argued that individuals are more susceptible to reference groups influence when the goods is conspicuous and publicly consumed (Bearden and Etzel, 1982; Makgosa and Mohube, 2007; Batra, Homer, Kahle, 2009; Morris and White, 2009). The influence of a reference group on consumer behavior can be done in one of two ways, either directly or indirectly. In the research Stephen Yang and He (2009), reference groups refer the group that individual has frequent contact with (such as family members, work associates, classmates, friends, etc.). These group is refers to the groups used by an individual to direct one purchasing behaviour in particular situation. These are generally referred as direct reference group (Schiffman and Kanuk, 1994). On the other hand, it included â€Å"the groups that does not have the membership in or direct contact with, such as certain expected groups or people in a certain social level (Stephen Yang and He, 2009). Based on the work of Khan and Khan (2005), the direct reference group influence was illustrated as â€Å"families, friends, co-worker, formal social groups and other leisure groups†. This differs from the indirect reference groups comprise of â€Å"individuals and groups t hat influence consumers purchase intentions without having and direct contact such as celebrities and sport personalities† (Khan and Khan, 2005). 2.2.1 Direct Reference Groups Direct reference groups can be defined as direct contact from the individual or groups with the consumers. With the reference from †¦.., it showed that families, friends, co-worker, formal social groups and other leisure groups are under this categories. A person has several reference groups for various subjects or different decisions normally. For example, â€Å"a woman may consult one reference group when she is purchasing a car and a different reference group for lingerie† (Consumer Behaviour, no date).These direct reference groups are the one who frequently contact with the consumers, It can be seen that the groups views from direct reference groups whether purchase the goods in order to be like group members, believing in group members decisions or a sign of wanting to fit in the group. The previous researchers have carried out the investigations on how the role models (parents, relatives, peers) influence teenagers purchase intentions and behavior (Martin and Bush; Subramanian and Subramanian, 1995)) and how parents and peers influence various products and brands purchase decisions (Bearden and Etzel, 1982). Researcher has shown that overt family communication can and often does influence younger consumers attitudes toward purchases and their consumption patterns (Martin and Bush). Consumers always do not feel confident enough to evaluate alone. They will consult a friend or partner by inviting them along to a potential purchase can enhance the process. â€Å"Having a peer present meant that shop assistants become largely irrelevant and that evaluation of a brand centered largely on initial peer reaction to fit, style and price-based decisions† (Guy W.Mullarkey, 2001). â€Å"It is also interesting to note that of all the three direct reference groups, friends tend to exert the greatest influence where individuals purchase brands because they identify themselves with their peers† (Khan and Khan, 2005). From the numerous researches that have been done, direct reference groups influence make an immediate impact to the consumers. Therefore, it can be concluded that direct reference groups play a significant role in providing relevant information, deemed necessary to make a purchase and conform the group norm. 2.2.2 Indirect Reference Groups Indirect reference groups is the group that influence consumers purchase decisions without having any direct contact with the consumers such as celebrities and sport personalities. Khan and Khan (2005) defined celebrities as â€Å"individuals who are well known to the public for their advertisements in areas other than product class endorsed† and that they represent â€Å"an idealisation of life†. In luxury goods industry, it will be much easier by connecting the brand to a celebrity and is even viewed, in some instances, as a necessity. This is because a luxury goods company is in the business of building and selling dreams, and nothing is more helpful in making such dreams concrete and thus more believable in the eyes of the consumer, than communicating it through a famous personality. Celebrities are being increasingly used in marketing communication by marketers to lend personality to their products in India (Matrade Chennai, 2005).

Management Information System Essay

Question 1 : In the 21st century, information technology has emerged as the fundamental technology of business. Explain how it has helped business and state examples of real time situation which you have read about of experienced. Decision Support, Problem Analysis and Overall Control Business managers often need to make decisions that can affect the business’ fortunes one way or other. For example, a company with sales outlets or distributors spread over a wide geographic area might want to optimize the logistical operations of delivering merchandise to the outlets. The best solution might be affected by numerous factors such as demand patterns, availability of merchandise, distances involved and the option of using external carriers (who can find two way loads and might prove a lesser cost option over long distances) instead of own vehicles. While it might be possible to use complex mathematical formulas by hand to compute the best solution, computers transform the whole process into a routine task of feeding certain information as input and obtaining suggestions for best solutions as output. The task can typically be done in a few minutes (instead of hours or even days) and it becomes possible to examine several alternatives before deciding upon one that seems most realistic. Identifying problems and analysing the factors that cause them also has been transformed by modern computer information systems. In a typical MIS environment, standard reports are generated in a routine manner comparing actual performance against original estimates. The software that generates the report can be instructed to highlight exceptions, i.e. significant variations between original estimates and actual performance. Managers will thus become aware of problem areas in the daily course of their work simply by looking at the reports they receive, without having to do detailed data collection and computations themselves. Identifying the factors responsible for the problem can also be routinized to some extent by using such tools as variance analysis. Variance analysis is an element of standard costing system that splits deviations from estimates (or standards) into causative factors such as increase in price of materials used, excessive usage of materials, unexpected machine downtimes, etc. With such a detailed report, managers can delve deeper into the problem factor, such as why there was excessive usage of materials. Control is also exercised through variance analysis. Budgets are prepared for all business operations by concerned managers working in a coordinated fashion. For example, estimated sales volumes will determine the levels of production; production levels will determine raw material purchases; and so on. With good information system management, it then becomes possible to generate timely reports comparing actual sales, production, raw material deliveries, etc against estimated levels. The reports will help managers to keep a watch on things and take corrective action quickly. For example, the production manager will become aware of falling sales (or rising sales) of particular products and can prepare to make adjustments in production schedules, and purchasing and inventory managers will become quickly aware of any mounting inventories of unused materials. MIS thus enhances the quality of communication all around and can significantly improve the effectiveness of operations control. Effective MIS Involves Humans and Computers Working together The major aspect to note is that MIS provides only the information; it is the responsibility of concerned managers to act on the information. It is the synergy between efficient, accurate and speedy equipment and humans with common sense, intelligence and judgment that really gives power to MIS. As a chartered accountant with business management qualifications and decades of exposure to business in senior to top level positions, Gopinathan helps small to medium businesses with new business start-up, business performance improvement and marketing. He uses structured business modelling techniques to help with all these, and has launched a business support website to provide the help in a convenient manner irrespective of geographical distances and boundaries. Significance Information technology has grown to permeate the business world, affecting how companies make and market their products, as well as how people communicate and accomplish their jobs in modern organizations. Specialized software shapes best-practices and industry standards, continually changing the face of business in almost every way. Information technology management includes many of the basic functions of management, such as staffing, organizing, budgeting and control, but it also has functions that are unique to IT, such as software development, change management, network planning and tech support. Generally, IT is used by organizations to support and compliment their business operations. The advantages brought about by having a dedicated IT department are too great for most organizations to pass up. Some organizations actually use IT as the centre of their business. Positive Impact on Business: First off, I.T. affects how businesses go about with their usual routine. For instance: the technology allows companies to go paperless, depending only on digital databases to store important data. Many pundits see this as a risk; isn’t digital data flimsy and unreliable, they ask. But the shift offers several benefits as well—including reduction in operational cost, since the business no longer has to buy or rent space or equipment just to store data. Information Technology also affects the accuracy of business operations. When a company uses a computerized accounting system instead of relying on a real live accountant, they eliminate (or, at the very least, significantly reduce) human error. And because such systems allow for faster operations, the company’s workers can concentrate on more pressing tasks. The impact of the Management Information System The impact of MIS on the functions is in its management. With a good MIS support, the management of marketing, finance, production and personnel becomes more efficient, the tracking and monitoring the functional targets becomes easy. The functional managers are informed about the progress, achievements and shortfalls in the activity and the targets. The manager is kept alert by providing certain information indicating the probable trends in the various aspects of business. This helps in forecasting and long-term perspective planning. The manager† attention is brought to a situation which is exceptional in nature, inducing him to take an action or a decision in the matter. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away or by blending and analysis, saving the manager’s valuable time. The MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organization. Since all the information systems use the dictionary, there is common understanding of terms and terminology in the organization bringing clarity in the communication and a similar understanding of an event in the organization. The MIS calls for a systemization of the business operations for an effective system design. This leads to streamlining of the operations which complicate the system design. It improves the administration of the business by bringing a discipline in its operations everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism in the business operations. Since the goals and objective of the MIS are the products of business goals and objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization. A well designed system with a focus on the manager makes an impact on the managerial efficiency. The fund of information motivates an enlightened manager to use a variety of tools of the management. It helps him to resort to such exercises as experimentation and modelling. The use of computers enables him to use the tools and techniques which are impossible to use manually. The ready-made packages make this task simpler. The impact is on the managerial ability to perform. It improv es the decision making ability considerably. Communications Technology Leveraging advances in communications technology is imperative to surviving in the modern business world. Advances in cellular phone technology have revolutionized the way businesspeople communicate with clients, employees, suppliers and strategic partners. The Internet has revolutionized the marketing function in addition to opening up a wide range of communication options. Modern smartphones are changing the game yet again with the introduction of new and innovative applications. A small business owner can now access a web-based customer relationship management service on a smartphone from anywhere in the world, for example, allowing him to obtain vital data about contacts before making calls. Accessibility By making communication more convenient, communication technology has helped to make communication more accessible, especially long-distance communication. Through various computer-mediated communication methods–communication done through the use of a computer, such as email, instant messages, and social networking websites–you can easily and instantly communicate with people in other cities, states and countries. This is vastly different from early forms of long-distance communication. Early forms of long-distance communication included the use of homing pigeons and/or runners to carry a message to its destination. How long a message would take before reaching its destination depended on the distance between the person sending the message and the person receiving the message. Mass Communication Organizations, like schools and businesses, use electronic communication to share information with a large number of people. Businesses can send mass emails to employees in order to inform workers about things like rule changes and important meetings. Many academic institutions use mass communication in order to maintain a well-informed campus. In case of an emergency, such as a spreading fire or presence of an armed assailant, mass communication can quickly inform people of the situation, giving enough notice to allow people to take the necessary actions to stay safe. Computer-mediated communication can be socially beneficial. For people who are socially awkward, computer-mediated communication such as online forums and chat rooms can help create a more fulfilling social life. For example, someone who fails at personal relationships because he speaks before thinking about the consequences has more control with Internet communication. He can read back his statements before posting, which will likely reduce the number of awkward moments the person creates. Communication technology offers other benefits, as well. Dating websites, for instance, can relieve some of the frustration involved with dating by allowing you to view the profiles of potential dates so you can determine who is the best match for you. This can save you both time and heartbreak. Considerations While information technology solutions can contribute to the success of your organization, there are a number of unique costs to consider. In addition to the cost of implementing an IT solution, you must employ highly educated and specialized workers to maintain, monitor, expand and repair your IT infrastructure. Question 4 : The role of hospital has changed from medical assistance to health care. What are the important information systems required to be considered while implementing front-end application development for hospital management? HOSPITAL INFORMATION SYSTEM (HIS) A hospital information system (HIS) is essentially a computer system that can manage all the information to allow health care providers to do their jobs effectively. These systems have been around since they were first introduced in the 1960s and have evolved with time and the modernization of healthcare facilities. The computers were not as fast in those days and they were not able to provide information in real time as they do today. The staff used them primarily for managing billing and hospital inventory. All this has changed now, and today hospital information systems include the integration of all clinical, financial and administrative applications. Modern HIS includes many applications addressing the needs of various departments in a hospital. They manage the data related to the clinic, finance department, laboratory, nursing, pharmacy and also the radiology and pathology departments. The hospitals that have switched to HIS have access to quick and reliable information including patients’ records illustrating details about their demographics, gender, age etc. By a simple click of the mouse they receive important data pertaining to hospital finance systems, diet of patients, and even the distribution of medications. With this information they can monitor drug usage in the facility and improve its effectiveness. Many hospitals have as many as 200 disparate systems combined into their HIS. Hospital information systems have become very advanced and new innovations are continuously being introduced. But a HIS is useless if it confuses the hospital employees. The system must be user friendly and should include training by the vendors. A good HIS offers numerous benefits to a hospital including but not limited to the delivery of quality patient care and better financial management. The HIS should also be patient centric, medical staff centric, affordable and scalable. The technology changes quickly and if the system is not flexible it will not be able to accommodate hospital growth. COMPONENTS It can be composed of one or a few software components with specialty-specific extensions as well as of a large variety of sub-systems in medical specialties * Laboratory Information System (LIS) * Radiology Information System (RIS) * Clinical Information System (CIS) * Nursing Information Systems (NIS) * Pharmacy Information System (PIS) SOFTWARE COMPONENT Software Component is a system element offering a predefined service or event, and able to communicate with other components. It should be : * Multiple-use * Non-context-specific * Compostable with other components (inter relationship with other components) * Encapsulated i.e., non-investigable through its interfaces * A unit of independent deployment and versioning Laboratory Information System (LIS) Laboratory Information System (LIS) is a software based laboratory and information management system that offers a set of key features that support a modern laboratory’s operations. Those key features include but are not limited to workflow and data tracking support, flexible architecture, and smart data exchange interfaces, which fully support its use in regulated environments. The features and uses of a LIMS have evolved over the years from simple sample tracking to an enterprise resource planning tool that manages multiple aspects of laboratory informatics. Due to the rapid pace at which laboratories and their data management needs shift, the definition of LIMS has become somewhat controversial. As the needs of the modern laboratory vary widely from lab to lab, what is needed from a laboratory information management system also shifts. The end result: the definition of a LIMS will shift based on who you ask and what their vision of the modern lab. Radiology Information System (RIS) A radiology information system (RIS) is a networked software suite for managing medical imagery and associated data. An RIS is especially useful for managing radiological records and associated data in a multiple locations and is often used in conjunction with a picture archiving and communication system (PACS) to manage work flow and billing. An RIS has several basic functions: Patient management * An RIS can track a patient’s entire workflow within the radiology department; images and reports can be added to and retrieved from electronic medical records (EMRs) and viewed by authorized radiology staff. Scheduling * Appointments can be made for both in- and out-patients with specific radiology staff. Patient tracking * A patient’s entire radiology history can be tracked from admission to discharge. The history can be coordinated with past, present and future appointments. Results reporting * An RIS can generate statistical reports for a single patient, group of patients or particular procedure. Film tracking * An RIS can track individual films and their associate data. Billing * An RIS facilitates detailed financial record-keeping, electronic payments and automated claims submission. Clinical Information System (CIS) Clinical Information System is a collection of various information technology applications that provides a centralized repository of information related to patient care across distributed locations. This repository represents the patient’s history of illnesses and interactions with providers by encoding knowledge capable of helping clinicians decide about the patient’s condition, treatment options, and wellness activities. The repository also encodes the status of decisions, actions underway for those decisions, and relevant information that can help in performing those actions. The database could also hold other information about the patient, including genetic, environmental, and social contexts. Features : * access the medical literature * ask clinical or administrative questions of aggregates of patient data, * receive automatic warnings or suggestions when the patient’s data satisfy certain logical rules * receive critiques when proposing therapies or ordering diagnostic tests, * access guidelines for standards of care * analyse trade-offs and the likelihood of alternative outcomes (decision analysis) * receive lists of differential diagnoses Nursing Information System (NIS) Nursing information systems is a type of health care management system. It helps nurses use their nursing skills and computer knowledge within a health care environment. A nursing information system has different features and benefits. Features Nurses can self-schedule work hours based on their work shift and departmental needs. Staff nurse managers or nursing administrators can review each nurse’s schedule and make approvals. Another nursing information system feature includes documenting patient care plans. Benefits One nursing information system benefit includes saving time. For instance, nursing managers can confirm a nurse’s work availability without contacting each nurse. Nurses can review a patient’s treatment plan when working outside the office, such as a home care nurse. Pharmacy Information System (PIS) Pharmacy information systems (PIS) are complex computer systems that have been designed to meet the needs of a pharmacy department. Through the use of such systems, pharmacists can supervise and have inputs on how medication is used in a hospital. Some of the activities which Pharmacy Information Systems have been employed in pharmacy departments include: Clinical Screening The Pharmacy Information System can assist in patient care by the monitoring of drug interactions, drug allergies and other possible medication-related complications. When a prescription order is entered, the system can check to see if there are any interactions between two or more drugs taken by the patient simultaneously or with any typical food, any known allergies to the drug, and if the appropriate dosage has been given based on the patient’s age, weight and other physiologic factors. Alerts and flags come up when the system picks up any of these. Prescription Management The Pharmacy Information System can also be used to manage prescription for inpatients and/or outpatients. When prescription orders are received, the orders are matched to available pharmaceutical products and then dispensed accordingly depending on whether the patient is an inpatient or outpatient. It is possible to track all prescriptions passed through the system from who prescribed the drug, when it was prescribed to when it was dispensed. It is also possible to print out prescription labels and instructions on how medication should be taken based on the prescription. Inventory Management Pharmacies require a continuous inventory culture in order to ensure that drugs do not go out of stock. This is made even more difficult when there are multiple dispensing points. When don manually it is very difficult to maintain an accurate inventory. Pharmacy Information Systems aid inventory management by maintaining an internal inventory of all pharmaceutical products, providing alerts when the quantity of an item is below a set quantity and providing an electronic ordering system that recommends the ordering of the affected item and with the appropriate quantity from approved suppliers. Patient Drug Profiles These are patient profiles managed by the Pharmacy Information System and contain details of their current and past medications, known allergies and physiological parameters. These profiles are used for used for clinical screening anytime a prescription is ordered for the patient. Report Generation Most Pharmacy Information Systems can generate reports which range from determining medication usage patterns in the hospital to the cost of drugs purchased and /or dispensed. Interactivity with other systems It is important that Pharmacy Information Systems should be able to interact with other available systems such as the clinical information systems to receive prescription orders and financial information system for billing and charging.

Solar Panel

The local council of Greenville recently made a proposal for all houses and businesses to install solar hot-water systems by 2010. Houses and businesses that who have not installed solar hot-water systems by then would be charged a â€Å"greenhouse levy†. However some residents have expressed anger over the proposal. â€Å"Solar Sellout† published in a local newspaper, an opinion piece and its accompanying cartoon written Bob Walsh, contends that the proposal which aims to reduce greenhouse gas emissions is not appropriate for the small suburb of Greenville.Walsh uses a sarcastic and angry tone which is quite personal, and aims to clearly outline why the proposal by the government is a bad idea. Walsh manipulates the reader by using a series of techniques to convey his point of view. The first technique which stands out is the headline, and the use of a graphic. The headline ‘solar sellout’ is conveying the meaning that the proposal will be exactly that, a â€Å"sellout†. The cartoon stands out instantly due to its size and placement on the page. The image portrays the character of the Mayor.He’s depicted to be a person of obvious wealth, shown by the ‘bling’ worn around his neck and his incredible size. The size of the Mayor also gives the impression that he’s a force to be reckoned with and that the population of the town don’t have a chance of standing up to him. The image shows the two classes of wealth present in the town, one, being the rich, represented by the large, well-kept houses both with solar panels on the roof, yet also clearly the minority. Then the working class which is represented by the collection of smaller houses that aren’t able to afford the panels.The reader then sees the families living in the less attractive houses being forced to pay the Mayor their well-earned money. Wash uses a series of techniques to emphasise his point of view. He commences with emotive la nguage like â€Å"†¦ become a captive of the radical environmentalists† who have made the council their â€Å"captive†. By describing environmentalists as â€Å"radical†, Mr Walsh evokes a sense of fear in the audience, questioning whether environmentalists can be trusted and if they are safe to be consulted with.This leads the reader to question the honesty of the council and their ability to fend off environmental lobby groups who have their own agenda in the scheme. The word â€Å"captive† forces the reader to question the credibility of the council in its ability to make logical decisions on the community’s behalf. Such an implication is likely to leave readers questioning the real motivations behind the council’s decision. The use of the loaded term â€Å"incredibly† coerces the reader to consider the proposal as ridiculous and out of line.Furthermore, it belittles those who are supporters of the proposal and leads the reade r to consider supporters of the proposal as absurd. The author continues with loaded language saying that â€Å"this is a blatant abuse of residents’ rights†¦ † in an attempt to appeal to the audiences self interest and desire for freedom. By describing the citizens as â€Å"innocent† Mr Walsh creates a divide between the council and the residents of Greenville.This intends to imply to the reader that the residents are the victims of the proposal and the council is set to take advantage of the residents. In a bid to add credibility to his argument, Walsh utilises statistics such as â€Å"The cost? $200 per house, and $500 per business! † Wash also uses rhetorical question and then answering it himself. By doing so, Walsh ridicules the suggestion of the cost to the consumer. This appeals to the readers sense of financial security and makes the suggestion seem ridiculous.He also states that even if every Australian household installed hot water systems , â€Å"greenhouse gases would only be reduced by†¦ just 5. 1%†. The use of these statistics is employed not only to add credibility to his own argument but to discredit the council’s claim that its proposal would significantly reduce greenhouse gas emissions. The council claim is further made illogically when the author says â€Å"Greenville only represents a tiny fraction of that 5. 1%† so â€Å"how can one suburb’s actions affect the whole world? The author’s sarcastic use of this rhetorical question aims to embarrass the council and its proposal, thus convincing the reader to believe the council’s argument has been discredited and that Mr Walsh’s is the most valid. Finally,Mr Walsh proposes his own solution to this proposal and challenges the mayor to â€Å"lobby governments for more nuclear power plants, rather than squander public money on frivolous solar panels†. The emotive term â€Å"frivolous† intends to ridicule the proposal and coerces the reader to feel hat there are far more effective alternatives than the council’s current proposal. Furthermore, contrasting the current proposal with his own proposal, allows Walsh to appear to be well-informed on the issue, thus he knows what he is writing about. By appealing on the readers sense of self-interest, financial insecurity and suspicion of authority, Walsh persuades the reader to consider that the councils proposal would be ineffective and would suppress individual freedoms and rights; inappropriate for Greenville and the greater good.

Is Discrimination Killing America - 1092 Words

Is Discrimination Killing America? Eric Brene once said, â€Å"The moment a little boy is concerned with which is a jay and which is a sparrow, he can no longer see the birds or hear them sing.† This quote is not only powerful and alarming but it too can shed some light on the situation here in America regarding discrimination. Discrimination is a plague of society that has cast a shadow over this country and has caused tension among us in the process. The question remains: is discrimination killing America? Discrimination is defined as, â€Å"treatment or consideration of, or making a distinction in favor of or against, a person or thing based on the group, class, or category to which that person or thing belongs rather than on individual merit,† (Dictionary.com 1). This debate over whether or not discrimination is killing America is more prevalent now than ever, with the case of Ahmed Mohamed. 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