www.ivey.uwo.ca/cases

www.businessthinkers.com (general site for entrepreneurs)www.garage.com (for start ups)

www.inc.com (inc magazine)www.startupstreet.com (strategic, advisory and financial resource)

www.casestudiessamples.blogspots.comhttp://ivythesis.typepad.com/term_paper_topics/2009/04/human-resources-management.html

http://www.icmrindia.org/free%20resources/casestudies/McDonald%20food%20chain.htmhttp://www.icmrindia.org/business%20Updates/micro%20casestudies/Human%20Resource%20Management.htmhttp://www.universalteacherpublications.com/mba/free-management-library.htmIntroduction Substance abuse and dependence is now one of the most frequently occurring adjustment disorders in adolescents, young adults, and the general population. In fact, substance use disorders are the most prevalent form of psychiatric disorder in the United States (Rivers & Shore, 1997). Although all age groups are affected by this pervasive difficulty, adolescents and young adults are particularly heavily affected. A substantial proportion of the adolescent population uses drugs or alcohol to the extent that their health, interpersonal relationships, or school performance is adversely affected (Johnston, O'Malley, & Bachman, 2003). Primarily, the main purpose of this paper is to provide an analysis regarding one of the problems among children and adolescents, which is the substance abuse. The discussion will focus on the written document of McWhirter (2004), and will attempt to provide insightful details regarding substance abuse among children and adolescents. In Chapter 7, of McWhirter's written paper, the author have described the severity of substance use among children and adolescents, the problems related with it and the plausible solutions that can be used to solve such problems.

At Risk Youth

One of the problems faced by industrialized nations today, specifically United States is the growing number of individuals who are using or abusing substances including, illegal drugs, alcohol, and tobacco. Although, it has been noted that the overall consumption of drugs in the US has declined by 50% in the past 20 years, the past 10 years have revealed some increase in drug abuse among adolescents (Johnston, O'Malley & Bachman, 2003: US Department of Health and Human Services, 2002). In the case of alcohol use and drug abuse, Stephen (1998) states that polls of youth indicate that nine out of 10 teenagers drink alcohol to some extent by the time they finish high school, and a majority have used illegal drugs. According to the National Youth Violence Prevention Resource Center (2002), teenage consumption of alcohol is a serious problem in the United States. Recent survey revealed that 52% of eighth graders (and 80% of high-school seniors) have used alcohol at some time (Michigan University Institute for Social Research, 2000). The research also found that 25% of eighth graders (and 62% of high-school seniors) have been drunk. Furthermore, while it is illegal for minors to be given access with alcoholic drinks, it seems that such restriction has no, if only little, effect. The MUISR (2000) also found that 71% of eighth graders and 95% of high-school seniors say that they have easy access to alcohol.

In the two weeks survey study made by The National Institute on Drug Abuse (NIDA) in cooperation with its Monitoring the Future Study (MFS), it shows that 50% of senior high schools habitually drink alcohol, 26% of which is involved in bringe drinking and, over 20% of the tenth grades are into bringe drinking (Johnston, O'Malley & Bachman, 2003).

In terms of tobacco use, it has been noted that its use is more prevalent and that most children are trying to experiment with tobacco as 9 years of age. According to McWhirter (2004), the use of tobacco and alcohol are critical since both are regarded as "gateway" substances, which often lead to the use of illicit drugs such as coca based substances and marijuana. In the study made by Grunbaum, et al (2002), it has been found out that close to 20% of secondary students had been offered, sold, or provided illegal drugs like marijuana on school premises at some period during 12 months. The data given only shows that, different substances have been used by children or adolescents. This means that all children are at high-risk of abusing these substances because they have been aware of such and use it at the earlier age.

Determinants of Substance Abuse and Common Characteristics of Users

Majority of today's youth faces conflicts that they can barely handle in a very young age. Modernization has brought many social changes in the society. Children are being taken for granted, usually by parents who both work and have no time for their children. Another factor is the issue of broken family, peer pressure, and many other issues that would make a youth feel inferior of himself/herself. Youth like these seeks a way to express themselves and unfortunately, this search for self expression has often lead to deviant practices such as joining gangs, engaging in pre-marital sex and engaging in substance abuse. Stephen (1997) wrote that growing numbers of children are being neglected, abused, and ignored. Without change, the dark specter of generational warfare could become all too real. Stephen (1997) further continues that child-care advocates reports that up to 15% of 16-to 19-year-olds are at risk of never reaching their potential and simply becoming lost in society.

In other recent studies, the research shows that family and peer influence, individual characteristics including behavior and personality can also be considered as factors that influence children and adolescent to engage in substance abuse (Johnston, O'Malley & Bachman, 2003). There are several ways to determine if a youth is at-risk of substance abuse. Christle, et al (2002) cited that researchers have identified a number of demographic and behavioral characteristics of youth that contribute to their risk of involvement with substance abuse. These include ethnic minority status; aggressive, antisocial behavior; difficulties in school and school failure (including educational disabilities). These risk factors are common denominators in the backgrounds of youth who require a variety of human services like child welfare services.

Consequences of Substance Abuse Substance use and abuse is in the forefront of societal problems. It is a pervasive problem, affecting directly or indirectly the overwhelming majority of persons. The deleterious impact of alcohol and drugs is devastating. The involvement of some children and adolescents in substance abuse often lead to different consequences. Such consequences include physiological, psychosocial and legal aspects. It is noted that the physiological effect of drug abuse depends on the drugs that has been used. Substance abuse undermines physical health. For example, chronic alcohol abuse is associated with diseases of the liver, central nervous system, and heart. Often, as in the case of the brain disorder Korsakoff's syndrome, the damage resulting from alcohol abuse is irreversible. Additional health problems stemming from the use of other substances are well documented (Colby, 2004)). Well-known examples are lung cancer caused by smoking, and pervasive central nervous system damage resulting from the inhaling of solvents, cardiovascular disease and neurological damage (NCCDPHP, 2000). In addition, many substances are toxic in excessive doses, resulting in numerous acute and chronic effects on physical health, potentially leading to permanent disability or death. Finally, substance abuse increases the risk for acquiring other health-related problems, such as HIV, sexually transmitted diseases, or trauma secondary to accidents while under the influence of psychoactive substances (NCCDPHP, 2000).

Mental health disorders often occur with substance abuse. Co-morbidity is relatively common, with up to one third of individuals with psychiatric disorders reporting a lifetime history of substance abuse disorders as well. In some instances, psychiatric disorder precedes or even contributes to the development of substance abuse, whereas in others, emotional and behavioral disturbances arise within the context of alcohol and drug use problems. A large body of research has delineated the disproportionate representation of psychological dysfunction in substance abusers. Included are problems in personality, mood, self esteem, coping, behavior, and social functioning. Once again, some of these psychological difficulties may be evident prior to the onset of substance abuse, although psychological functioning often worsens over time in individuals with substance use disorders (McWhirter, 2004).

In addition, children and adolescents who are involved in substance abuse may also be affected in terms of their educational status. Abuse of specific substances may also contribute to relatively unique psychological presentations, such as the a-motivational state that has been linked to chronic marijuana use. Other psychological effects of substance abuse are directly linked to the biological impact of psychoactive substances (such as anxiety and irritability stemming from withdrawal) and the behaviors that result from dependence on drugs and alcohol (such as craving and preoccupation with obtaining desired substances).

General Prevention and Intervention Strategies Dependence on the support of others begins at conception, but even as people become increasingly self-sufficient, they continue to require assistance from others in one form or another throughout life. Young people struggling to become social beings and unique individuals at the same time are in particular need of the various forms of social support. When that support is missing, the resulting isolation from others increases the potential for progression from normal youthful dissonance toward more dangerous consequences that can include death or lifelong social and emotional disturbances and sometimes tend to get involve in different things that may even try to make worst of their situation such as substance abuse (Colby, 2004). In response to the increasing numbers of at-risk youth, numerous programs have been developed to cope with problem.

Here are some basic examples of approaches. Stephen (1997) states that positive reinforcement is one of the approaches that works well on at-risk youth. He states that children crave attention more than anything else, especially positive attention. "A baby who is cuddled, talked to, and stimulated in the first six weeks of life is much more likely to be intelligent and well adjusted than a baby ignored and simply fed and cleaned up in silence. Later, the child who is rewarded with praise for accomplishments is much more likely than others to become optimistic and achievement oriented" (Stephen, 1997). He also states that one extinguishes unacceptable behavior by ignoring it and eliminating the child's ability to gain attention.

On the other hand, pats on the back, awards, and ceremonies to celebrate accomplishments are particularly effective in fostering pro-social behavior and giving at-risk youth a stake in society, helping them overcome lack of hope and lack of faith in the future. He then suggested that using positive reinforcement must become a way of life for parents, teachers, and others. Teaching positive reinforcement to potential parents has been successful in reducing the at-risk population. Parent education can offer information and skills to assist the parent-to-be with incentives to learn and use good child-rearing practices. A similar program, Healthy Families America, was launched in 1992 by the National Committee to Prevent Child Abuse to help establish home visitation programs, service networks, and funding opportunities so all new parents can receive the necessary education and support regarding proper child rearing so as to prevent the involvement of children in risky matters such as substance abuse (Stephen, 1997).

Stephen (1997) also states that mentoring is one the effective ways to prevent or stop children or adolescents to engage in abusing substances. He cites the, leaders in Kansas City that are on a quest to recruit, train, and assign 30,000 mentors - one for every at-risk child in the city. Zimmerman, et al (2002) states that, researchers have suggested that natural mentors may play a vital role in adolescent development. Young people often attribute their safe passage through the tumultuous years of adolescence to the influence of significant non-parental adults such as teachers, extended family members, or neighbors. Zimmerman, et al (2002) has found empirical support for the proposition that having a natural mentor may play a vital role in the lives of adolescents.

It has also found out that having a natural mentor was also associated with lower levels of problem behavior, and youth with natural mentors had more positive attitudes toward school across the range of friends' negative school behaviors. However, natural mentors had somewhat larger direct effects on school attitudes than they did on problem behaviors. Nevertheless, having a natural mentor may play a vital role in the lives of adolescents. "Respondents with natural mentors reported lower levels of problem behavior, including marijuana use and nonviolent delinquency, than did those without mentors. This was true even after we adjusted for demographic variables and known risk factors such as problem behavior norms and friends' problem behaviors. Having a mentor partially offset the effect of these negative peer influences, providing evidence of a compensatory effect" (Zimmerman, et al, 2002). In addition, they suggested that programs that create settings that provide opportunities for youth to interact with non-parental adults may help adolescents foster the development of natural mentoring relationships.

McWhirter (2004) states that, programs are now appearing in schools and community centers to provide attitudes and skills necessary to resolve conflict among children and adolescents non-violently. Models have been developed by the American Bar Association and the Justice Department, as well as by educators. He further states that "one of the best models involves training school staff - teachers, administrators, custodians, bus drivers, and cafeteria workers - in creative nonviolent conflict-resolution methods." He concluded that older students are also taught these techniques, and they in turn teach younger students, turning peer pressure into a positive rather than negative force. Community school programs are also effective because most youth spend their time at school. Stephen (1997) gave some examples of successful Community school programs. One of the programs is in Missouri, where 6,000 volunteers keep 675 schools open for extra hours. Another examples are the Boys' and Girls' Clubs that offer mentoring in New Jersey schools and the Safe Haven programs in New York that provide safe environments and positive after-school tutoring and enrichment programs.

Another program that is effective in the prevention of children and adolescents in substance abuse is the Life-skills training. Life-skills training have been defined as the formalized teaching of requisite skills for surviving, living with others, and succeeding in a complex society. It is reported that life-skills training was "proposed as the treatment of choice" when applied to prevention with adolescents. In addition, life skills which assist in the development of an adolescent's self-efficacy "include the ability to solve problems, to communicate honestly and directly, to gain and maintain social support, and to control emotions and personal feelings." Life-skills programs vary in the types and quality of services they provide. McWhirter (2004) stated that "essential components of any life-skills curriculum are based on the development of fundamental, generalized interpersonal skills." Successful life-skills programs appeared to have similar core elements. Effective programs addressed developmental needs, health promotion/problem prevention, and high-risk groups. This program involves adventures as a self-esteem enhancer. The overall goal of adventure-based activities and programming appears to be the enhancement of participants' self-esteem or self-concept. Accordingly, adventure programming activities and experiences include excitement, risk taking, cooperation and competition, trust, communication, physical, mental, and emotional challenges, physical activity, problem-solving and creativity, group and individual skill development, and fun. With all these prevention programs, children and youth initiative is obviously an important factor for at-risk recovery.

Summary

It shows that substances such as alcohol, drugs and tobacco abuse are really prevalent in children and adolescents in the United States. The use and misuse of these substances usually occurs because of different reasons within the society in which these children and adolescents belong. These include family, peer pressure and other stressful factors that affect the way children cope with the society and make them more exposed or prone to use and misuse different substances. It is easy to determine if children and youth are engaged in these activities. The features or characteristics that may be seen are aggressiveness, antisocial behavior, difficulties in school and school failure.

The discussion also tackles the possible consequences that children and adolescents may face if they will engage themselves in abusing the substance mentioned above. The children and youth may be affected in terms of physiological, psychosocial and legal consequences. Physiological includes the physical and other health related problems that these children may encounter. Psychosocial includes the problems in terms of social interaction with other individuals in the society, since youth involve in abusing substances may have a tendency to have an anti-social behavior. And lastly, legal consequences, if these children and adolescents will not stop using these substances, there will be a tendency that these individuals will become delinquent and may be involved in criminal cases.

In order to prevent substance abuse among children and adolescents, the government and other part of the society has been able to initiate different prevention programs, which aims to totally prevent the engagement of these young individuals to such activities. Prevention programs are being administered within the family, school, community and other organizations who are trying to make a better living society for the youth.

All in all, it can be said that all people in the society are being challenged by different environmental factors that tests are ability to choose the most favourable activities for us. And since, children and adolescents are just beginning to taste what the world can give them, they are considered to be more prone on risky and dangerous activities such as substance abuse. In this manner, the older ones must be able to provide all the needs of children and make them aware of all the possible consequences that they may faced if they would engage in these activities. Awareness is closely related to prevention because if these children will understand the possible risks of engaging in using and misusing substances, they will be more willing to ignore these substances and be involved in worthwhile activities.

Substance abuse among childrenIntroduction

Substance abuse and dependence is now one of the most frequently occurring adjustment disorders in adolescents, young adults, and the general population. In fact, substance use disorders are the most prevalent form of psychiatric disorder in the United States (Rivers & Shore, 1997). Although all age groups are affected by this pervasive difficulty, adolescents and young adults are particularly heavily affected. A substantial proportion of the adolescent population uses drugs or alcohol to the extent that their health, interpersonal relationships, or school performance is adversely affected (Johnston, O'Malley, & Bachman, 2003). Primarily, the main purpose of this paper is to provide an analysis regarding one of the problems among children and adolescents, which is the substance abuse. The discussion will focus on the written document of McWhirter (2004), and will attempt to provide insightful details regarding substance abuse among children and adolescents. In Chapter 7, of McWhirter's written paper, the author have described the severity of substance use among children and adolescents, the problems related with it and the plausible solutions that can be used to solve such problems.

At Risk Youth

One of the problems faced by industrialized nations today, specifically United States is the growing number of individuals who are using or abusing substances including, illegal drugs, alcohol, and tobacco. Although, it has been noted that the overall consumption of drugs in the US has declined by 50% in the past 20 years, the past 10 years have revealed some increase in drug abuse among adolescents (Johnston, O'Malley & Bachman, 2003: US Department of Health and Human Services, 2002). In the case of alcohol use and drug abuse, Stephen (1998) states that polls of youth indicate that nine out of 10 teenagers drink alcohol to some extent by the time they finish high school, and a majority have used illegal drugs. According to the National Youth Violence Prevention Resource Center (2002), teenage consumption of alcohol is a serious problem in the United States. Recent survey revealed that 52% of eighth graders (and 80% of high-school seniors) have used alcohol at some time (Michigan University Institute for Social Research, 2000). The research also found that 25% of eighth graders (and 62% of high-school seniors) have been drunk. Furthermore, while it is illegal for minors to be given access with alcoholic drinks, it seems that such restriction has no, if only little, effect. The MUISR (2000) also found that 71% of eighth graders and 95% of high-school seniors say that they have easy access to alcohol.

In the two weeks survey study made by The National Institute on Drug Abuse (NIDA) in cooperation with its Monitoring the Future Study (MFS), it shows that 50% of senior high schools habitually drink alcohol, 26% of which is involved in bringe drinking and, over 20% of the tenth grades are into bringe drinking (Johnston, O'Malley & Bachman, 2003).

In terms of tobacco use, it has been noted that its use is more prevalent and that most children are trying to experiment with tobacco as 9 years of age. According to McWhirter (2004), the use of tobacco and alcohol are critical since both are regarded as "gateway" substances, which often lead to the use of illicit drugs such as coca based substances and marijuana. In the study made by Grunbaum, et al (2002), it has been found out that close to 20% of secondary students had been offered, sold, or provided illegal drugs like marijuana on school premises at some period during 12 months. The data given only shows that, different substances have been used by children or adolescents. This means that all children are at high-risk of abusing these substances because they have been aware of such and use it at the earlier age.

Determinants of Substance Abuse and Common Characteristics of Users

Majority of today's youth faces conflicts that they can barely handle in a very young age. Modernization has brought many social changes in the society. Children are being taken for granted, usually by parents who both work and have no time for their children. Another factor is the issue of broken family, peer pressure, and many other issues that would make a youth feel inferior of himself/herself. Youth like these seeks a way to express themselves and unfortunately, this search for self expression has often lead to deviant practices such as joining gangs, engaging in pre-marital sex and engaging in substance abuse. Stephen (1997) wrote that growing numbers of children are being neglected, abused, and ignored. Without change, the dark specter of generational warfare could become all too real. Stephen (1997) further continues that child-care advocates reports that up to 15% of 16-to 19-year-olds are at risk of never reaching their potential and simply becoming lost in society.

In other recent studies, the research shows that family and peer influence, individual characteristics including behavior and personality can also be considered as factors that influence children and adolescent to engage in substance abuse (Johnston, O'Malley & Bachman, 2003). There are several ways to determine if a youth is at-risk of substance abuse. Christle, et al (2002) cited that researchers have identified a number of demographic and behavioral characteristics of youth that contribute to their risk of involvement with substance abuse. These include ethnic minority status; aggressive, antisocial behavior; difficulties in school and school failure (including educational disabilities). These risk factors are common denominators in the backgrounds of youth who require a variety of human services like child welfare services.

Consequences of Substance Abuse Substance use and abuse is in the forefront of societal problems. It is a pervasive problem, affecting directly or indirectly the overwhelming majority of persons. The deleterious impact of alcohol and drugs is devastating. The involvement of some children and adolescents in substance abuse often lead to different consequences. Such consequences include physiological, psychosocial and legal aspects. It is noted that the physiological effect of drug abuse depends on the drugs that has been used. Substance abuse undermines physical health. For example, chronic alcohol abuse is associated with diseases of the liver, central nervous system, and heart. Often, as in the case of the brain disorder Korsakoff's syndrome, the damage resulting from alcohol abuse is irreversible. Additional health problems stemming from the use of other substances are well documented (Colby, 2004)). Well-known examples are lung cancer caused by smoking, and pervasive central nervous system damage resulting from the inhaling of solvents, cardiovascular disease and neurological damage (NCCDPHP, 2000). In addition, many substances are toxic in excessive doses, resulting in numerous acute and chronic effects on physical health, potentially leading to permanent disability or death. Finally, substance abuse increases the risk for acquiring other health-related problems, such as HIV, sexually transmitted diseases, or trauma secondary to accidents while under the influence of psychoactive substances (NCCDPHP, 2000).

Mental health disorders often occur with substance abuse. Co-morbidity is relatively common, with up to one third of individuals with psychiatric disorders reporting a lifetime history of substance abuse disorders as well. In some instances, psychiatric disorder precedes or even contributes to the development of substance abuse, whereas in others, emotional and behavioral disturbances arise within the context of alcohol and drug use problems. A large body of research has delineated the disproportionate representation of psychological dysfunction in substance abusers. Included are problems in personality, mood, self esteem, coping, behavior, and social functioning. Once again, some of these psychological difficulties may be evident prior to the onset of substance abuse, although psychological functioning often worsens over time in individuals with substance use disorders (McWhirter, 2004).

In addition, children and adolescents who are involved in substance abuse may also be affected in terms of their educational status. Abuse of specific substances may also contribute to relatively unique psychological presentations, such as the a-motivational state that has been linked to chronic marijuana use. Other psychological effects of substance abuse are directly linked to the biological impact of psychoactive substances (such as anxiety and irritability stemming from withdrawal) and the behaviors that result from dependence on drugs and alcohol (such as craving and preoccupation with obtaining desired substances).

General Prevention and Intervention Strategies Dependence on the support of others begins at conception, but even as people become increasingly self-sufficient, they continue to require assistance from others in one form or another throughout life. Young people struggling to become social beings and unique individuals at the same time are in particular need of the various forms of social support. When that support is missing, the resulting isolation from others increases the potential for progression from normal youthful dissonance toward more dangerous consequences that can include death or lifelong social and emotional disturbances and sometimes tend to get involve in different things that may even try to make worst of their situation such as substance abuse (Colby, 2004). In response to the increasing numbers of at-risk youth, numerous programs have been developed to cope with problem.

Here are some basic examples of approaches. Stephen (1997) states that positive reinforcement is one of the approaches that works well on at-risk youth. He states that children crave attention more than anything else, especially positive attention. "A baby who is cuddled, talked to, and stimulated in the first six weeks of life is much more likely to be intelligent and well adjusted than a baby ignored and simply fed and cleaned up in silence. Later, the child who is rewarded with praise for accomplishments is much more likely than others to become optimistic and achievement oriented" (Stephen, 1997). He also states that one extinguishes unacceptable behavior by ignoring it and eliminating the child's ability to gain attention.

On the other hand, pats on the back, awards, and ceremonies to celebrate accomplishments are particularly effective in fostering pro-social behavior and giving at-risk youth a stake in society, helping them overcome lack of hope and lack of faith in the future. He then suggested that using positive reinforcement must become a way of life for parents, teachers, and others. Teaching positive reinforcement to potential parents has been successful in reducing the at-risk population. Parent education can offer information and skills to assist the parent-to-be with incentives to learn and use good child-rearing practices. A similar program, Healthy Families America, was launched in 1992 by the National Committee to Prevent Child Abuse to help establish home visitation programs, service networks, and funding opportunities so all new parents can receive the necessary education and support regarding proper child rearing so as to prevent the involvement of children in risky matters such as substance abuse (Stephen, 1997).

Stephen (1997) also states that mentoring is one the effective ways to prevent or stop children or adolescents to engage in abusing substances. He cites the, leaders in Kansas City that are on a quest to recruit, train, and assign 30,000 mentors - one for every at-risk child in the city. Zimmerman, et al (2002) states that, researchers have suggested that natural mentors may play a vital role in adolescent development. Young people often attribute their safe passage through the tumultuous years of adolescence to the influence of significant non-parental adults such as teachers, extended family members, or neighbors. Zimmerman, et al (2002) has found empirical support for the proposition that having a natural mentor may play a vital role in the lives of adolescents.

It has also found out that having a natural mentor was also associated with lower levels of problem behavior, and youth with natural mentors had more positive attitudes toward school across the range of friends' negative school behaviors. However, natural mentors had somewhat larger direct effects on school attitudes than they did on problem behaviors. Nevertheless, having a natural mentor may play a vital role in the lives of adolescents. "Respondents with natural mentors reported lower levels of problem behavior, including marijuana use and nonviolent delinquency, than did those without mentors. This was true even after we adjusted for demographic variables and known risk factors such as problem behavior norms and friends' problem behaviors. Having a mentor partially offset the effect of these negative peer influences, providing evidence of a compensatory effect" (Zimmerman, et al, 2002). In addition, they suggested that programs that create settings that provide opportunities for youth to interact with non-parental adults may help adolescents foster the development of natural mentoring relationships.

McWhirter (2004) states that, programs are now appearing in schools and community centers to provide attitudes and skills necessary to resolve conflict among children and adolescents non-violently. Models have been developed by the American Bar Association and the Justice Department, as well as by educators. He further states that "one of the best models involves training school staff - teachers, administrators, custodians, bus drivers, and cafeteria workers - in creative nonviolent conflict-resolution methods." He concluded that older students are also taught these techniques, and they in turn teach younger students, turning peer pressure into a positive rather than negative force. Community school programs are also effective because most youth spend their time at school. Stephen (1997) gave some examples of successful Community school programs. One of the programs is in Missouri, where 6,000 volunteers keep 675 schools open for extra hours. Another examples are the Boys' and Girls' Clubs that offer mentoring in New Jersey schools and the Safe Haven programs in New York that provide safe environments and positive after-school tutoring and enrichment programs.

Another program that is effective in the prevention of children and adolescents in substance abuse is the Life-skills training. Life-skills training have been defined as the formalized teaching of requisite skills for surviving, living with others, and succeeding in a complex society. It is reported that life-skills training was "proposed as the treatment of choice" when applied to prevention with adolescents. In addition, life skills which assist in the development of an adolescent's self-efficacy "include the ability to solve problems, to communicate honestly and directly, to gain and maintain social support, and to control emotions and personal feelings." Life-skills programs vary in the types and quality of services they provide. McWhirter (2004) stated that "essential components of any life-skills curriculum are based on the development of fundamental, generalized interpersonal skills." Successful life-skills programs appeared to have similar core elements. Effective programs addressed developmental needs, health promotion/problem prevention, and high-risk groups. This program involves adventures as a self-esteem enhancer. The overall goal of adventure-based activities and programming appears to be the enhancement of participants' self-esteem or self-concept. Accordingly, adventure programming activities and experiences include excitement, risk taking, cooperation and competition, trust, communication, physical, mental, and emotional challenges, physical activity, problem-solving and creativity, group and individual skill development, and fun. With all these prevention programs, children and youth initiative is obviously an important factor for at-risk recovery.

Summary

It shows that substances such as alcohol, drugs and tobacco abuse are really prevalent in children and adolescents in the United States. The use and misuse of these substances usually occurs because of different reasons within the society in which these children and adolescents belong. These include family, peer pressure and other stressful factors that affect the way children cope with the society and make them more exposed or prone to use and misuse different substances. It is easy to determine if children and youth are engaged in these activities. The features or characteristics that may be seen are aggressiveness, antisocial behavior, difficulties in school and school failure.

The discussion also tackles the possible consequences that children and adolescents may face if they will engage themselves in abusing the substance mentioned above. The children and youth may be affected in terms of physiological, psychosocial and legal consequences. Physiological includes the physical and other health related problems that these children may encounter. Psychosocial includes the problems in terms of social interaction with other individuals in the society, since youth involve in abusing substances may have a tendency to have an anti-social behavior. And lastly, legal consequences, if these children and adolescents will not stop using these substances, there will be a tendency that these individuals will become delinquent and may be involved in criminal cases.

In order to prevent substance abuse among children and adolescents, the government and other part of the society has been able to initiate different prevention programs, which aims to totally prevent the engagement of these young individuals to such activities. Prevention programs are being administered within the family, school, community and other organizations who are trying to make a better living society for the youth.

All in all, it can be said that all people in the society are being challenged by different environmental factors that tests are ability to choose the most favourable activities for us. And since, children and adolescents are just beginning to taste what the world can give them, they are considered to be more prone on risky and dangerous activities such as substance abuse. In this manner, the older ones must be able to provide all the needs of children and make them aware of all the possible consequences that they may faced if they would engage in these activities. Awareness is closely related to prevention because if these children will understand the possible risks of engaging in using and misusing substances, they will be more willing to ignore these substances and be involved in worthwhile activities.

RIM Vs Motorola: Talent Poaching and the Question of EthicsIn December 2008, Research in Motion Ltd. (RIM) sued Motorola Inc. (Motorola) for, what it called, illegally preventing it from hiring employees that Motorola had laid off. According to RIM, the two companies had entered into an agreement in February 2008 on not hiring each other's employees or the newly separated ex-employees. When Motorola announced lay offs in large numbers, RIM, attempted to hire and gain some engineers at a lower cost. RIM considered that the agreement had expired in August 2008 and prayed to the Chicago court for damages.

RIM contended that despite the agreement having expired, Motorola had unlawfully extended the contract and prevented RIM from offering jobs to the fired Motorola employees. RIM, well-known as the BlackBerry mobile phone maker, was established in Ontario, Canada, in 1984. With offices throughout North America, Europe, and the Asia Pacific,1 it is one of the leading wireless manufacturers, designing, manufacturing, and marketing its products worldwide.

The company provides access to information through email, phone, text messaging, the internet and intranet-based applications using its integrated wireless hardware and software. RIM technology also supports numerous other manufacturers and developers with their wireless connections to improve their products and services.

Motorola is headquartered in Schaumburg, Illinois, USA, and has been in the communication inventions and innovations business for almost 80 years as of 2008.2

Some of its key achievements include the construction of the device that transmitted the first message from the moon and also the creation of the first handheld portable cellular phone called DynaTAC (DYNamic Total Area Coverage) which created a revolution in cellular communication. Motorola was the pioneer in launching the 'push-to-talk' technology. It also launched the first all-digital high definition television (HDTV).

Motorola's range of products and services include wireless handsets and accessories, digital equipment for entertainment purposes, voice and data communication systems, wireless access systems, and enterprise mobility solutions.

Motorola and RIM had always been adversaries in selling high end mobile phone handsets which contained features like e-mail and internet access, music players, or cameras. While RIM continued to expand, developing compact and slender handsets, Motorola had been facing hard times since the mid-2000s.

Its market position fell to number 3 behind Samsung at number 2 and Nokia at number 1 in 2008.3 In February 2008, RIM and Motorola entered into a mutual agreement wherein they agreed to exchange confidential information and to avoid poaching each other's employees. Experts felt that the agreement was mainly aimed at ensuring that employees did not move away to a competitor carrying with them vital information and trade secrets.

However, in September 2008, Motorola sued RIM on the grounds of poaching 40 of its employees in Florida since the beginning of the year and claimed US$50,000 as compensation.

TISCO - THE WORLD'S MOST COST-EFFECTIVE STEEL PLANT

"With cost-cutting measures and good management, a company like TISCO may be the last one standing."- Rajeev Das, Analyst, Paribas Asia Equity

"It is our endeavor to reduce the cost of saleable steel by 2.5 - 3 per cent every year."

"We realize that however efficient we become, the steel industry is not likely to return the cost of capital. This is no fault of ours, but due to the structure of the global and Indian steel industry."br>

- B. Muthuraman, Managing Director, TISCO. BACKGROUND NOTE

Tata Iron and Steel Company (TISCO) was established in 1907 by J N Tata1 at Jamshedpur in Bihar, India. TISCO offered a wide range of products (See Exhibit I) and services including Hot rolled/Cold rolled (HR/CR) coils2 and sheets, tubes, construction bars, forging quality steel, rods, structurals, strips and bearings. It also manufactured material handling equipment, ferro alloys and other minerals, software for process controls, and offered cargo-handling services.

In the early 1980s, TISCO initiated a modernization program of its steel plant (See Exhibit II). Explaining the need of modernization, J J Irani, the then managing director of TISCO said, "We would have been finished otherwise.... you cannot fight a modern-day war with weapons of the Mahabharata. We would have been annihilated had we not modernized. We realized this and embarked on the four phases of modernization. We addressed our drawbacks like the steel making process, our weakest link." By mid-1990s, TISCO had become India's most cost-effective steel plant. It also became Asia's first and India's largest, integrated steel producer (ISP) in the private sector. By 2000, eight divisions of Tata Steel were ISO-14001 certified, including Noamundi Iron Operations, West Bokaro Collieries, Ferro Alloy Plant, Joda, Sukinda Chromite Mines, Joda East Iron Mines, Tubes Division, and Growth Shop & Steel Works. By early 2000, TISCO had completed four phases of the modernization programme with an investment of about Rs 60 billion . The company had invested Rs 4 billion on consultancy fees during 1990 to 2000. The fifth phase of the program had commenced in April 2000.

By April 2001, TISCO had emerged as the world's lowest cost producer of steel. TISCO's operating cost at the 'hot metal' (liquid) stage was $75 per tonne. The company's cost per tonne of finished steel stood at $152 for the financial year ending March 2001. The World Steel Dynamics (WSD) , in a report stated, "Tata Steel is a 'world class' steel maker - the only in India - and one of the few companies in the world with such a standing. This view point is based on a variety of reasons such as low operating costs, special company culture, good profitability, etc." WSD identified 12 companies as World Class Steel Makers, and ranked them based on certain factors. Analysts felt that TISCO's achievement of becoming the lowest cost producer of steel was mostly attributed to its implementation of TOP (Total Operational Performance), a program that focused on improving TISCO's operational practices and rationalizing procurement costs.

THE 'TOP' PROGRAM

In the early 1990s, TISCO appointed McKinsey and Booz-Allen & Hamilton to study its operations and suggest ways to cut costs. Irani explained the rationale, "Cost-cutting measures are more important in the present situation where one can no longer control steel prices which are dictated by international markets." The consultants suggested TISCO to focus on various components affecting the cost of steel, which included cost of raw materials, cost of conversion, fuel rate in the blast furnace and mining of coal. TISCO was advised to use the most modern technologies to cut costs further.

In the second half of 1998, in association with McKinsey, TISCO implemented TOP program at its G blast furnace . TOP was widely regarded, as a program, which would have a maximum positive impact to the bottomline, with minimum investment, required in minimum time. It aimed achieving large improvements in throughput, quality and cost in the short term. In the long run, TOP was expected to enable the TISCO to achieve high rates of performance improvement.

Since TISCO's scale of operations was quite large, the whole organization was divided into manageable 'units' to facilitate the implementation of TOP. A unit team was formed comprising a unit leader and two facilitators. Initially, McKinsey provided the facilitators. The unit leader was responsible for the performance of that particular unit. The team worked full time on the TOP program for a period of 12 weeks. Around eight units were addressed simultaneously during the 12 weeks, and this was also known as 'Wave.' The entire Wave was divided into five phases.

The unit team's objective was to explore ideas to reduce the cost or delays made by the unit by about 40%. In the process, the team was expected to identify and understand how each cost element could be reduced. The team had to establish relationships between key performance indicators and the elements that had an impact on them. Each team was asked to set itself a target based on the TOP norms; develop ideas to improve from the present level of performance to the target level; and implement those ideas.

The Phase I of a Wave was two weeks long. During this phase, the cost base was examined and the items that had a maximum impact on the bottomline were identified. Individual components of the larger cost elements were identified by drawing cost trees . The cost elements, which could be reduced were highlighted and the reduction targets were set. In the Phase II of the Wave, ideas were explored to reach the set targets. At the G blast furnace, throughput and fuel costs were identified as the key performance indicators in the Phase II. Among the different individual components of fuel costs, coke and coal were the largest cost elements. They accounted for about 50% of the total costs. A reduction target was set to bring costs down to 570 kgs per thm from 610 kgs per thm. In the Phase III of the Wave, ideas were generated to achieve the target output of 3800 tons per day. Considering the techno-economic feasibility, 36 ideas were short-listed. The ideas were then grouped based on the capital expenditure required for implementing each idea. The Phase IV of the Wave started with the implementation of these ideas. Simultaneously, the G blast furnace also implemented 185 ideas, which did not require any capital investment.

By March 1999, the G blast furnace achieved a savings of Rs 87 million against the targeted savings of Rs 40 million. TISCO set up a potential savings target for its G blast furnace at about Rs 300 million per annum, accounting for more than 10% of its profits in the fiscal 1999. By late 1999, TOP was in Phase V of the Wave. In 2000, similar Waves were also adopted in TISCO's shop floors. The TOP program had helped TISCO to shift its focus from just producing volumes to costs and quality. Moreover, TOP enabled TISCO to improve customer satisfaction and loyalty.XEROX - THE BENCHMARKING STORY

The case examines the benchmarking initiatives taken by Xerox, one of the world's leading copier companies, as a part of its 'Leadership through Quality' program during the early 1980s. The case discusses in detail the benchmarking concept and its implementation in various processes at Xerox. It also explores the positive impact of benchmarking practices on Xerox.

"Benchmarking at Xerox is still very much a matter of competitive advantage. It is used to keep Xerox's edge razor-sharp, to discover where something is being done with less time, lower cost, fewer resources and better technology."

- Warren Jeffries, a Customer Services Benchmarking Manager, Xerox, in 1999.BACKGROUND NOTE

The history of Xerox goes back to 1938, when Chester Carlson, a patent attorney and part-time inventor, made the first xerographic image in the US. Carlson struggled for over five years to sell the invention, as many companies did not believe there was a market for it. Finally, in 1944, the Battelle Memorial Institute in Columbus, Ohio, contracted with Carlson to refine his new process, which Carlson called 'electrophotography.' Three years later, The Haloid Company, maker of photographic paper, approached Battelle and obtained a license to develop and market a copying machine based on Carlson's technology.

Haloid later obtained all rights to Carlson's invention and registered the 'Xerox' trademark in 1948. Buoyed by the success of Xerox copiers, Haloid changed its name to Haloid Xerox Inc in 1958, and to The Xerox Corporation in 1961. Xerox was listed on the New York Stock Exchange in 1961 and on the Chicago Stock Exchange in 1990. It is also traded on the Boston, Cincinnati, Pacific Coast, Philadelphia, London and Switzerland exchanges. The strong demand for Xerox's products led the company from strength to strength and revenues soared from $37 million in 1960 to $268 million in 1965.

Throughout the 1960s, Xerox grew by acquiring many companies, including University Microfilms, Micro-Systems, Electro-Optical Systems, Basic Systems and Ginn and Company. In 1962, Fuji Xerox Co. Ltd. was launched as a joint venture of Xerox and Fuji Photo Film.

Xerox acquired a majority stake (51.2%) in Rank Xerox in 1969. During the late 1960s and the early 1970s, Xerox diversified into the information technology business by acquiring Scientific Data Systems (makers of time-sharing and scientific computers), Daconics (which made shared logic and word processing systems using minicomputers), and Vesetec (producers of electrostatic printers and plotters).

In 1969, it set up a corporate R&D facility, the Palo Alto Research Center (PARC), to develop technology in-house. In the 1970s, Xerox focused on introducing new and more efficient models to retain its share of the reprographic market and cope with competition from the US and Japanese companies. While the company's revenues increased from $ 698 million in 1966 to $ 4.4 billion in 1976, profits increased five-fold from $ 83 million in 1966 to $ 407 million in 1977. As Xerox grew rapidly, a variety of controls and procedures were instituted and the number of management layers was increased during the 1970s. This, however, slowed down decision-making and resulted in major delays in product development.

In the early 1980s, Xerox found itself increasingly vulnerable to intense competition from both the US and Japanese competitors. According to analysts, Xerox's management failed to give the company strategic direction. It ignored new entrants (Ricoh, Canon, and Sevin) who were consolidating their positions in the lower-end market and in niche segments. The company's operating cost (and therefore, the prices of its products) was high and its products were of relatively inferior quality in comparison to its competitors. Xerox also suffered from its highly centralized decision-making processes. As a result of this, return on assets fell to less than 8% and market share in copiers came down sharply from 86% in 1974 to just 17% in 1984. Between 1980 and 1984, Xerox's profits decreased from $ 1.15 billion to $ 290 million (Refer Exhibit I).

In 1982, David T. Kearns (Kearns) took over as the CEO. He discovered that the average manufacturing cost of copiers in Japanese companies was 40-50% of that of Xerox. As a result, Japanese companies were able to undercut Xerox's prices effortlessly. Kearns quickly began emphasizing reduction of manufacturing costs and gave new thrust to quality control by launching a program that was popularly referred to as 'Leadership Through Quality.' As part of this quality program, Xerox implemented the benchmarking program. These initiatives played a major role in pulling Xerox out of trouble in the years to come. The company even went on to become one of the best examples of the successful implementation of benchmarking.

THE CROMPTON GREAVES' OPERATIONS OVERHAUL

When I became CEO of Crompton Greaves in 1985, the company was in bad trim. The wind had abruptly changed direction, catching the management unawares. It was my job primarily to set the sails right again and correct the course."

-Kewal K. Nohria, CEO, Crompton Greaves in 1998

THE BLUECHIP'S DOWNFALL

Crompton Greaves Ltd. (CGL), the flagship company of the L. M. Thapar group was one of India's leading private sector electrical engineering companies. CGL manufactured a wide range of transformers, switchgears, control equipment, motors and related products and railway signaling equipment besides consumer products.

CGL was incorporated in 1937 as a 100% subsidiary of the UK based Crompton Parkinson Ltd., (CPL), under the name of Parkinson Works Ltd. (PWL). In 1948, the L. M. Thapar group company, Greaves Cotton & Co Ltd. (GCCL), acquired a 26% stake, which was later increased to 50% in 1956. In 1966, a joint venture company (between GCCL & CPL), Greaves Cotton & Crompton Parkinson Ltd. was amalgamated with PWL. The company was renamed as Crompton Greaves Ltd.

Over the years, CGL evolved from being a single location company manufacturing ceiling fans and AC industrial motors, into a multi location, multi product company. In the late 1970s, CGL entered into various technical collaboration agreements with renowned companies from USA, UK, Europe and Japan. These activities (many undertaken as joint ventures), were in related products, supplementing the company's main business. While many of these companies were amalgamated with CGL, some of them were divested as well during the following years.

In 1987, CGL began its diversification moves and entered the telecommunications and industrial electronics arena. The company also undertook turnkey engineering projects and began providing information technology services.During the 1980s, CGL was in dire straits with profitability at all time lows. Nohria said, "In 1982 and 1983, industry in general and the electrical industry in particular was gripped by recession, and the scenario changed from a seller's market to a buyer's market. Falling demand combined with higher production capacity and employment levels resulted in declining productivity during 1982-84 at Crompton Greaves."

The CGL management realized that it would have to take steps soon enough to put the company back on track. Nohria believed that operational efficiency was one of the keys to organizational effectiveness and long run profitability. Besides working towards an overall restructuring of the company, Nohria decided to focus on total quality management to improve CGL's performance. Nohria began by talking about improving quality and response to customer demands and improving delivery. Shopfloor workers were sent to visit customers and get first-hand responses on products. Cross-functional task forces were created to look into rejections and deliveries began to be monitored closely.

The most evident of the company's efforts were at the switchgear unit in Nashik, Maharashtra. This 1400 worker unit was one of CGL's heaviest investments, with the maximum CNC machines1, high voltage testing laboratories and state-of-the-art manufacturing facilities.

As part of the plans to increase resource productivity, the unit had its first total quality management program in December 1991 wherein CGL emphasized that the entire approach should be changed to 'value added management.' In the earlier setup, CGL followed an European model wherein the planning department worked out the optimum load based on capacities, and told marketing what mix of orders to bring in. In the new setup, the marketing department gave the customer demand figures and everything was geared to deliver on the date the customer wanted. During 1993-95, the unit had over 21,000 kaizens , making it the unit with the highest number of kaizens2 in the country.

The biggest change was regarding the reorientation of the production process itself. The unit began using the concept of single piece flow (SPF), which had been successfully used by different industries abroad. One group of machines was arranged so that work proceeded in an anti-clockwise, 'U' shape. Rather than one product being made at different points on an assembly line, one entire product was made from start to finish by one cell. This was combined with the concept of kitting, (providing only enough material to produce one item at a time) which meant less wastage and better inventory control. The inventory carried declined from 2.87 months in 1992-93 to 2.35 months in 1994-95. The inventory-turnover ratio went up from 2 in 1992 to 7.5 in 1995. This was largely due to a computerized model installed for inventory control. Minimum, maximum and re-order levels were determined by this model and it covered all the 'A' and 'B' items . At any given point of time3, the growth in sales was always greater than the inventory build up.

The above setup offered many other advantages. While production volumes were more or less the same, they now required only one-fourth the floor space. This released space for new products. Turnover or rotation of space therefore increased by three times. Also, smaller batches offered more flexibility and therefore higher customization. SPF also increased the pressure on processes by identifying problems and bottlenecks very quickly. For instance, one shop had a board with different-colored bulbs that indicated the reasons for various bottlenecks. For instance, if there was no material or no order, a red bulb lit up; if the basket was full, a yellow bulb lit up, and so on. This resulted in efficiency improving by 10%.

CGL found out that the steel brought into the factory was worked on for 1-48 hours, but was kept in the factory for as many as 147 days. Factory sources revealed that though the investments in new machinery brought down the working time by 50% from 48 to 24 hours, the efficiency could further improve if the above problem was tackled.

CGL worked on the housekeeping front as well to make the unit more efficient. Material was organized so that no searching was required. All the items were allocated a place, close to where it was used, with the date and inspection status marked on it. The layout was correspondingly changed so that minimum transport was required. None of the machines were grounded, which meant that layouts could be changed easily. Several meters of pipe in different colors were put up so that problem lines could be easily identified. Fixtures were also colored according to the product they were used to make. Detailed instructions in both English and the local language Marathi were put up at various spots. Charts displaying the cost of energy per machine per hour were put up to reduce energy wastage.

CGL formed cross-functional teams to identify and solve problems on the shopfloor. For instance, a malfunctioning magnetic sensor (which would have cost Rs 80,000 and taken six weeks to import) was fixed for just Rs 440. This was made possible by a technician who went to Pune and spent two days with a local manufacturer to set the sensor right. To reduce set-up times and ensure faster changeovers, teams were formed to work towards bringing the time elapsed in exchange of dies to a single minute. 'Andon4' devices were installed on automatic lines to warn of faults that would have otherwise been passed without being noticed, and later rejected or reworked. For instance, any fault in the insulation of copper wire resulted in a signal from the andon device installed.

CGL's efforts seemed to have paid off initially as between 1990-95, CGL doubled its turnover crossing the Rs 1000 crore mark. Productivity went up from Rs 6 lakh per man per year to Rs 12 lakh. Profits also increased by six times. There was a 30% reduction in the total number of workers needed because of the increased efficiency. However, CGL did not retrench any workers and instead redeployed them where necessary. The time spent by employees on training also went up from 1% to 3%.

CGL assured job security to the workers, the union agreed to productivity increases of 38% in 1991, and a further 20% in 1994. There were significant positive changes in the attitudes of the workers as well as the management. While skilled workers began contributing in routine tasks (such as unloading of material) if required, they were also given sufficient authority (such as to refuse to use inferior materials.)

The management also began measuring managerial efficiency based on certain internally decided parameters. The efficiency was found to have gone up from 23% to 51% during the same period. The unit also began using information technology to further improve its efficiency. A company official commented, "We are beginning to use Infotech for fast information, to compress the business cycle time from the receipt of the order in the branch, to planning and delivery." CGL also formulated a vendor development program for many of its 804 vendors besides linking several ancillaries to the company through computer networks.

REAPING BENEFITS

The CGL could not replicate the success of its Nashik factory on a corporate level. Over the next decade, CGL's performance declined significantly. A main reason behind this was the fact the company's presence was predominantly in low margin businesses and its pricing power was low. A significant portion of the revenue came from motors and consumer products like fans, lights, luminaires, and telecom equipment. In motors, although CGL supplied the entire range, technology was fairly simple and entry barriers were low. The domestic motors market was dominated by the unorganized sector and margins were low. In consumer products also, entry barriers were low and CGL fought with the unorganized sector for shelf space. The telecom equipment market was characterized by high competition, including MNCs. All this resulted in CGL reporting net losses in the fiscal 2000. The company's long term competitive position was rather weak in the absence of technology support. Also, CGL spent just 1.5% of its turnover on R&D, which was significantly lower than that spent by multinationals like Siemens and ABB and even Indian conglomerates like BHEL and L&T.

In the late 1990s, CGL revealed plans to split itself into three companies - power and industrial systems, consumer products and digital, to be headed by independent professionals. This was expected to enable each company to form separate strategic alliances to enhance competitive strengths. However, procedural delays led to this plan being deferred. CGL then set up a five-member committee to review its operations. The head of this committee was Sudhir Trehan, who had taken over from Nohria as the CEO in 2000. Trehan immediately began taking steps to prune costs such as consolidation of production capacities at factories, closing down of some of the corporate offices, shifting of factories from high cost locations to low cost locations and reducing employee strength etc.

Trehan's moves prompted analysts to remark that CGL seemed to be planning to rewrite its Nashik unit success story all over again with another company wide operational overhaul in the offing.

QUESTIONS FOR DISCUSSION

1. Analyze the steps taken by Crompton Greaves at its Nashik unit to improve operational efficiency. Comment on the advantages of the single piece flow (SPF) system adopted by the company?

2. Study the steps taken at the Nashik unit on the people and housekeeping fronts to supplement the overall 'value added management' initiative. In what way did they help the unit in improving efficiency?

THE CROMPTON GREAVES' OPERATIONS OVERHAUL

"When I became CEO of Crompton Greaves in 1985, the company was in bad trim. The wind had abruptly changed direction, catching the management unawares. It was my job primarily to set the sails right again and correct the course."

-Kewal K. Nohria, CEO, Crompton Greaves in 1998

THE BLUECHIP'S DOWNFALL

Crompton Greaves Ltd. (CGL), the flagship company of the L. M. Thapar group was one of India's leading private sector electrical engineering companies. CGL manufactured a wide range of transformers, switchgears, control equipment, motors and related products and railway signaling equipment besides consumer products.

CGL was incorporated in 1937 as a 100% subsidiary of the UK based Crompton Parkinson Ltd., (CPL), under the name of Parkinson Works Ltd. (PWL). In 1948, the L. M. Thapar group company, Greaves Cotton & Co Ltd. (GCCL), acquired a 26% stake, which was later increased to 50% in 1956. In 1966, a joint venture company (between GCCL & CPL), Greaves Cotton & Crompton Parkinson Ltd. was amalgamated with PWL. The company was renamed as Crompton Greaves Ltd.

Over the years, CGL evolved from being a single location company manufacturing ceiling fans and AC industrial motors, into a multi location, multi product company. In the late 1970s, CGL entered into various technical collaboration agreements with renowned companies from USA, UK, Europe and Japan. These activities (many undertaken as joint ventures), were in related products, supplementing the company's main business. While many of these companies were amalgamated with CGL, some of them were divested as well during the following years.

In 1987, CGL began its diversification moves and entered the telecommunications and industrial electronics arena. The company also undertook turnkey engineering projects and began providing information technology services.During the 1980s, CGL was in dire straits with profitability at all time lows. Nohria said, "In 1982 and 1983, industry in general and the electrical industry in particular was gripped by recession, and the scenario changed from a seller's market to a buyer's market. Falling demand combined with higher production capacity and employment levels resulted in declining productivity during 1982-84 at Crompton Greaves."

The CGL management realized that it would have to take steps soon enough to put the company back on track. Nohria believed that operational efficiency was one of the keys to organizational effectiveness and long run profitability. Besides working towards an overall restructuring of the company, Nohria decided to focus on total quality management to improve CGL's performance.

Nohria began by talking about improving quality and response to customer demands and improving delivery. Shopfloor workers were sent to visit customers and get first-hand responses on products. Cross-functional task forces were created to look into rejections and deliveries began to be monitored closely.

The most evident of the company's efforts were at the switchgear unit in Nashik, Maharashtra. This 1400 worker unit was one of CGL's heaviest investments, with the maximum CNC machines1, high voltage testing laboratories and state-of-the-art manufacturing facilities.

As part of the plans to increase resource productivity, the unit had its first total quality management program in December 1991 wherein CGL emphasized that the entire approach should be changed to 'value added management.' In the earlier setup, CGL followed an European model wherein the planning department worked out the optimum load based on capacities, and told marketing what mix of orders to bring in. In the new setup, the marketing department gave the customer demand figures and everything was geared to deliver on the date the customer wanted. During 1993-95, the unit had over 21,000 kaizens , making it the unit with the highest number of kaizens2 in the country.

The biggest change was regarding the reorientation of the production process itself. The unit began using the concept of single piece flow (SPF), which had been successfully used by different industries abroad. One group of machines was arranged so that work proceeded in an anti-clockwise, 'U' shape. Rather than one product being made at different points on an assembly line, one entire product was made from start to finish by one cell. This was combined with the concept of kitting, (providing only enough material to produce one item at a time) which meant less wastage and better inventory control. The inventory carried declined from 2.87 months in 1992-93 to 2.35 months in 1994-95. The inventory-turnover ratio went up from 2 in 1992 to 7.5 in 1995. This was largely due to a computerized model installed for inventory control. Minimum, maximum and re-order levels were determined by this model and it covered all the 'A' and 'B' items . At any given point of time3, the growth in sales was always greater than the inventory build up.

The above setup offered many other advantages. While production volumes were more or less the same, they now required only one-fourth the floor space. This released space for new products. Turnover or rotation of space therefore increased by three times. Also, smaller batches offered more flexibility and therefore higher customization. SPF also increased the pressure on processes by identifying problems and bottlenecks very quickly. For instance, one shop had a board with different-colored bulbs that indicated the reasons for various bottlenecks. For instance, if there was no material or no order, a red bulb lit up; if the basket was full, a yellow bulb lit up, and so on. This resulted in efficiency improving by 10%.

CGL found out that the steel brought into the factory was worked on for 1-48 hours, but was kept in the factory for as many as 147 days. Factory sources revealed that though the investments in new machinery brought down the working time by 50% from 48 to 24 hours, the efficiency could further improve if the above problem was tackled.

CGL worked on the housekeeping front as well to make the unit more efficient. Material was organized so that no searching was required. All the items were allocated a place, close to where it was used, with the date and inspection status marked on it. The layout was correspondingly changed so that minimum transport was required. None of the machines were grounded, which meant that layouts could be changed easily. Several meters of pipe in different colors were put up so that problem lines could be easily identified. Fixtures were also colored according to the product they were used to make. Detailed instructions in both English and the local language Marathi were put up at various spots. Charts displaying the cost of energy per machine per hour were put up to reduce energy wastage.

CGL formed cross-functional teams to identify and solve problems on the shopfloor. For instance, a malfunctioning magnetic sensor (which would have cost Rs 80,000 and taken six weeks to import) was fixed for just Rs 440. This was made possible by a technician who went to Pune and spent two days with a local manufacturer to set the sensor right. To reduce set-up times and ensure faster changeovers, teams were formed to work towards bringing the time elapsed in exchange of dies to a single minute. 'Andon4' devices were installed on automatic lines to warn of faults that would have otherwise been passed without being noticed, and later rejected or reworked. For instance, any fault in the insulation of copper wire resulted in a signal from the andon device installed.

REAPING BENEFITS

CGL's efforts seemed to have paid off initially as between 1990-95, CGL doubled its turnover crossing the Rs 1000 crore mark. Productivity went up from Rs 6 lakh per man per year to Rs 12 lakh. Profits also increased by six times. There was a 30% reduction in the total number of workers needed because of the increased efficiency. However, CGL did not retrench any workers and instead redeployed them where necessary. The time spent by employees on training also went up from 1% to 3%.

CGL assured job security to the workers, the union agreed to productivity increases of 38% in 1991, and a further 20% in 1994. There were significant positive changes in the attitudes of the workers as well as the management. While skilled workers began contributing in routine tasks (such as unloading of material) if required, they were also given sufficient authority (such as to refuse to use inferior materials.)

The management also began measuring managerial efficiency based on certain internally decided parameters. The efficiency was found to have gone up from 23% to 51% during the same period. The unit also began using information technology to further improve its efficiency. A company official commented, "We are beginning to use Infotech for fast information, to compress the business cycle time from the receipt of the order in the branch, to planning and delivery." CGL also formulated a vendor development program for many of its 804 vendors besides linking several ancillaries to the company through computer networks.

REAPING BENEFITS

The CGL could not replicate the success of its Nashik factory on a corporate level. Over the next decade, CGL's performance declined significantly. A main reason behind this was the fact the company's presence was predominantly in low margin businesses and its pricing power was low. A significant portion of the revenue came from motors and consumer products like fans, lights, luminaires, and telecom equipment. In motors, although CGL supplied the entire range, technology was fairly simple and entry barriers were low. The domestic motors market was dominated by the unorganized sector and margins were low. In consumer products also, entry barriers were low and CGL fought with the unorganized sector for shelf space. The telecom equipment market was characterized by high competition, including MNCs. All this resulted in CGL reporting net losses in the fiscal 2000. The company's long term competitive position was rather weak in the absence of technology support. Also, CGL spent just 1.5% of its turnover on R&D, which was significantly lower than that spent by multinationals like Siemens and ABB and even Indian conglomerates like BHEL and L&T.

In the late 1990s, CGL revealed plans to split itself into three companies - power and industrial systems, consumer products and digital, to be headed by independent professionals. This was expected to enable each company to form separate strategic alliances to enhance competitive strengths. However, procedural delays led to this plan being deferred. CGL then set up a five-member committee to review its operations. The head of this committee was Sudhir Trehan, who had taken over from Nohria as the CEO in 2000. Trehan immediately began taking steps to prune costs such as consolidation of production capacities at factories, closing down of some of the corporate offices, shifting of factories from high cost locations to low cost locations and reducing employee strength etc.

Trehan's moves prompted analysts to remark that CGL seemed to be planning to rewrite its Nashik unit success story all over again with another company wide operational overhaul in the offing.

QUESTIONS FOR DISCUSSION

1. Analyze the steps taken by Crompton Greaves at its Nashik unit to improve operational efficiency. Comment on the advantages of the single piece flow (SPF) system adopted by the company?

2. Study the steps taken at the Nashik unit on the people and housekeeping fronts to supplement the overall 'value added management' initiative. In what way did they help the unit in improving efficiency?

McDonald's FOOD CHAIN

Our growth plan for the next three years is more a function of getting our logistics and cold chain right rather than going to far off places.- Amit Jetia, managing director, McDonald's India, Mumbai Joint Venture, in 2000.INTRODUCTION

It was early evening and one of the 25 McDonald's outlets in India was bustling with activity with hungry souls trooping in all the time. No matter what one ordered a hot Maharaja Mac or an apple pie the very best was served every time. But did anyone ever wonder as to how this US giant managed the show so perfectly? The answer seemed to lie in a brilliantly articulated food chain, which extended from these outlets right up to farms all across India.

US-based fast food giant, McDonald's success in India had been built on four pillars: limited menu, fresh food, fast service and affordable price. Intense competition and demands for a wider menu, drive-through and sit-down meals encouraged the fast food giant to customize product variety without hampering the efficacy of its supply chain.

Around the world (including India), approximately 85% of McDonald's restaurants were owned and operated by independent franchisees. Yet, McDonald's was able to run the show seamlessly by outsourcing nine different ingredients used in making a burger from over 35 suppliers spread all over India through a massive value chain. Between 1992 and 1996, when McDonald's opened its first outlet in India, it worked frenetically to put the perfect supply chain in place.

It trained the local farmers to produce lettuces or potatoes to specifications and worked with a vendor to get the perfect cold chain[1] in place. And explained to the suppliers precisely why only one particular size of peas was acceptable (if they were too large, they would pop out of the patty and get burnt).

These efforts paid off in the form of joint ventures between McDonald's India (a 100% wholly-owned subsidiary of McDonald's USA) and Hardcastle Restaurants Pvt. Ltd, (Mumbai) and Connaught Plaza Restaurant (New Delhi).

Few companies appreciate the value of supply chain management and logistics as much as McDonald's does. From its experience in other countries (Refer Exhibit II & III), McDonald's was aware that supply chain management was undoubtedly the most important factor for running its restaurants successfully. Amit Jatia, Managing Director, Hardcastle Restaurants Private Limited said, A McDonald's restaurant is just the window of a much larger system comprising an extensive food-chain, running right up to the farms.

McDonald's worked on the supply chain management well ahead of its formal entry to India. We spent seven years to develop the supply chain. The first McDonald's team came to India way back in 1989, said S. D. Saravanan (Saravanan), Product Manager, National Supply Chain, McDonald's India.