Value Chain analysis of Cathay pacific

Value Chain analysis of Cathay pacific Cathay Pacific is an international airline registered and based in Hong Kong, offering scheduled passenger and cargo services to 117 destination in 36 countries and territories . The company was founded in 1946 and remains deeply committed to its home base, making substantial investments to develop Hong Kong as one of the worlds leading global transportation hubs. In addition to fleet of 128 wide-bodied aircraft, these investments include catering, aircraft maintenance, ground handling companies and the corporate headquarters, Cathay Pacific city at Hong Kong airport. In year 2007 Cathay Pacific increasing their customers year by year. They got highest passenger load and they record passenger numbers with an average load factor of 81.1%. The capacity is increase by 3.9% with the most of the increase towards the end of the year. 2008 was a difficult year for the company. While the business picture was in first half of the year was positive but other half was not successful due to some political reason and higher fuel cost. Because of this reason company got loss in year 2008. In year 2009 was quite good for the company environment. They got profit of HK$4,694. This compares to the loss of HK$8696 from the previous year. In 2009 they try to ensure that standard the face of an unprecedented downturn in business. Lets see the internal and external environment changes in company environment. During current era they made some changes their strategy and services. Value Chain analysis of Cathay pacific C.P.(Cathay pacific) is one of the branded airline company in air line industry. It always competes with different airline company. It competes with different airlines company for its status and notoriety. Now a days C.P. is underwent for changes its image in market and also try to solve problem. So C.P. is made new strategies to solve problem which they are facing. The main concepts of new strategies are to increase a number of clients and also try to full fill services which demanded by the clients. C.p. management also sure about that this strategies related to services and technologies can be useful to compete against other airlines company. Inbound(internal) logistics: Related to its internal logistics C.P. builds good relationship and mutual aid with its suppliers. Related to this point internal logistics does not affect to its market position so positively. The main reason is that all airlines industry are getting same benefit from its suppliers. Operation Cathay Pacific providing a facility to passengers and they believes that their business are selling experience to the passengers. Loyalty is a main key factor for every business. The main key factor for loyalty is emotional bonding with passengers and this factor is helpful for C.P. to attract customers for repurchase airline products. The biggest dissimilarity of C.P. to its competitors is its people. The C.P. management is always trying to build bond between product development and customers expectation. C.P. is always trying to give good services to its passengers and passengers always feel welcomed, respected. The passengers always feel that they are travel in good and safe services. For improving customers services C.P. develop cultural changes within airline. They develop new program like service straight from heart for improving customer services. In this program they try to express about its understanding related importance of the people in organization and their contribution in their success. For providing a excellent customer service they using following steps. Generating a atmosphere for positive performance. Recruiting the accurate people and train properly Continual enhancement Services Throughout the world service is main key factor which can adding value of core corporate. All corporations throughout the world are increasing their value by offering various services. Cathay Pacific is always focusing on their services. Main aim of the C.P. is to provide superior services to their customers and to turn in to world most well liked airline. C.P. aware about that quality of service set them in good position from its competitors. C.P. also committed about on time performance to aim, maintaining and growing international route network, and increasing flight frequency to make their position in market They providing their services according to their strategy like services straight from heart and they are quite successful in their market. C.P.. Not only fulfill the costumers needs and aims not just to meet, Cathay Pacific goes beyond ensuring satisfaction to strengthen the loyalty of costumers and enhance the profit-ratio of the airline. For achieving a target market position C.P. uses Differentiation. According to this strategy C.P. offers to their customers wide product ranges and higher quality products to customers convenience. Technology development: As a technological point of view C.P. is also same as its competitors. C.P. was the first airline who announced to plans to install internet in flight. Then they go for their process and now a days they providing internet to all flights. C.P. was the first to electronically link airbus air craft to its maintenance center. C.P. also invested their money in e-business to become a Asias leading e-business airline company. The main idea behind this technology for C.P. is development of e-learning environment of company. Cathay Pacific made rapid progress to becoming Asias largest e-business airline. In all this technology C.P. introduced about improvement of passengers experience in three different way Online check in Notify Airport lounges In flight e-mail system Marketing and Sales C.P. always trying to attract new as well as their regular clients by providing them different tour package. Their services always attract customers to travel by C.P. They always try to providing cheap tickets. They generate different discount rate on their tickets. Human resource management The employees in Cathay Pacific are contributing in all new strategy which is developed by company. C.P. have main advantages against its competitors are its quality of services which are providing by its employees. C.P. promotes appropriate training to their staff to develop their employment strategy. C.P. also develop working environment for their staff. Company motivates their staff for their works. Company promote good leader for particular task to achieving a target. Porters five analysis Potential Entrants C.P. is prepared for new entrants and they are not greatly affected by new market entrants. The power of potential comers to C.P. is too weak. The main advantage for C.P. against new comers is government policies. They have to only focus their maintenance and low cost for their other expanses. These things are useful for C.P. against new comers in airlines market. Competitive rivalry The main competitors of C.P. are China airlines, Singapore airlines. C.P. is maintain their status in market by providing a best services, services are the main key element for C.P. this strategy gives C.P. to emotional bonding as well as better business relationship. C.P. implemented new strategy by providing a unique flying experience to their clients. Substitutes In this part of the analysis, clients are mainly looking for products in lowest prizes which are introduced by company. Substitute can also in the form of another services that a consumer deems suitable for them necessitate and capabilities. Substitutes can providing high power to company. For C.P. makes substitutes in its different department and it will help to lose other companys client. C.P. is sure about those substitutes that they wont give them more problems. Buyer power The main advantage for all consumers in this industry is that buying power. There are lots of companies available in airline industry. So individual buyers have so many options to buy tickets. So C.P. has only the option that they must have to providing tickets in low prices. Supplier power Supplier power is also highly influence in airline industry. Cathay Pacific also concern about this factor. Lets understand by example. If the fuel price is increases then C.P. have no other choice. C.P. is also increasing their fuel surcharge for each ticket. Mckinsey 7s model: Shared value C.P. always tries to make some innovative in their customers services so customers will take so less time in using their services as a process of transportation. The company sure that some services providing by them is never forgotten by their customers. Strategy C.P. management is always trying to learn from its previous. The only reason is behind is that they want to make their position in market. They always tries to not repeat their past mistake. The other strategy is they make their relation with their customers. They try to make emotional bonding with their consumers so that they can provide services that people will purchase. The other strategy is investing in new and better equipments. Structure Cathay pacific company structure is decentralized. In C.P. company each and every decision are not made by only one person. Each and every department has an authority to contribute their idea on decision. Each and every department shares their ideas before the decision. This decentralized structure helps to take a complete decision that will helps to provide best services. Systems C.P have reconfigure their system to check that weather new system are work as on their planning. And they also get conformed about that they providing services are in positive way. They also changes their system according to their departmental need. Staff Cathay pacific always keeps in their mind that the employees are main need for the company. They consider them as an asset of company. They hire employee according to job needs. They are providing proper and appropriate training to their employee. They also providing good financial and reward to their employee. Skill C.P. Accommodate a particular staff for particular services and the staff have ideas about how to provide best services. Company first checks their performance before providing them job. They also got conformed about all staff member have enough skill to use particular materials during their services. Ansoff analysis: Here is short view of ansoff analysis of C.P. According to this analysis market development is suit their business. Product development is also good for their business. According to analysis, they can maximize their profit ratio in market development and product development. Market development. Market development is mainly define by business aims to sell its existing product in new market. C.P. also made some changes with their product in existing market. They change in interior lay out and configuration of air craft. According to their strategy space is a key comfort variable. http://airlinesflightnews.com/search/cathay+pacific+market+development+to+moscow http://online.wsj.com/article/SB10001424052748704784904575112722646592114.html Product development: Product development mainly defines by the business aims to sell new product in existing market.. For increasing their customers and loyalty they trying provide more flights with more facilities. Before some time they announced that they will starts flights to Moscow. They also announced that they will starts three flights in a week. They also announced that they will start flight Auckland to Moscow. They also try to develop fastest as well as more convenient flights to their customers. Cathay pacific is also investing into product improvement across the fleet to enhance passenger satisfaction and long term product competitiveness. http://www.thefreelibrary.com/Will+Cathay+Pacifics+Passengers+Take+The+Airlines+Latest+Product-a061797748 Market penitration Market penitration is mainly define by business aim to sell their exisiting product in to existing market. For increasing their sells in the competitive market they make some discount rate on different product. C.P. is the first company who put their airline ticket in auction. They introduce new travel package for their customers. They are trying to introduce to their customers that they are selling complete tour package in low cost. Diversification Hong Kong Dragon Airlines Limited(Dragonair),an Asian regional airline registered and based in Hong Kong offering scheduled passenger and cargo services to 30 destinations in 10 countries with a fleet of 29 aircraft, is wholly subsidiary of Cathay Pacific. C.P. owns 18.1% of Air China. Twos analysis: Tows analysis is mainly concern with internal analysis of the company. Strength Diversified geographical spread Youngest fleet of aircraft Strong financial performance Weakness Weak turnover ratio Unbalanced business portfolio Opportunities Growing Asia pacific market Global airline market Threats Fuel prices Increasing competition from low cost airlines Diversification Cost leadership Merge Acquisition Internal development Diversification: Now days the competition in airline industry is very high. There are lots of airlines operated in Asia region. The main competitors for Cathay Pacific are Air Asia and Singapore airlines. Air Asia currently operates on 86 routes and its no frills service has obtained wide range in china market. And Singapore Airlines operates 88 destinations in 38 countries. Cathay Pacific should emphasize to diversify their routes. Merge Acquisition: Cathay pacific has to merge with different airlines to avoid future threats. Merge and acquisition is one of the best choices. To avoid their threats Cathay Pacific has recently merge with Air China. C.P. merge with Air China for cargo services. Internal development: For internal development concern Cathay Pacific is higher then their competitors. It mainly consists with their internal asset. In year 2007 some of the prime competitors are Singapore Airlines, SAS. During this year the asset turn over ratio was 1.15 times higher then C.P. and the same year Singapore Airlines consist the asset turn over ratio is 0.59 times lower then Cathay Pacific. But in an Asian region Cathay Pacific hae good market and they have good internal development.

Myths, Dreams and the Epic of Gilgamesh :: Epic of Gilgamesh Essays

The Epic of Gilgamesh, a masterpiece of world literature, is considered to be one of the oldest epics in the world. It is called an epic, but it is really a myth. In order to be able to understand a myth, it is necessary to have an historical point of view from two perspectives, so to speak, an outer and an inner one. The outer one concerns the necessity to understand the historical form in which the archetypes appear, the historical background to which the myth is related - in our case, the Babylonian culture and religion. The inner aspect concerns the essential problems of the time, with which that particular epoch struggled consciously, or in which it was unconsciously involved. Although this is primarily a scientific task, I believe that it is nevertheless a matter of immediate necessity for us to understand such documents humains in relation to our own life, for all the ages live in us, and we cannot really understand ourselves unless we know our spiritual roots. What particular age and what spiritual contents are evoked in us by the unconscious is, to a certain extent, a question of individual fate. Since Western culture is based to a great extent on Judaism and Christianity, Babylonian culture as one of their roots may be looked upon as of immediate psychological interest to us all. The archetypes live in their realm, beyond time and space. This builds the bridge of understanding between men of all ages, and makes it possible to realize that we ourselves with our essential problems are bound up in the continuity of the eternal problems of mankind, as they are mirrored in myths. But the form in which the archetypes appear, their garments so to speak, depends on the historical conditions: the symbols in which they appear change. In the human being these changes correspond to the development of human consciousness. Thus the myths, in my opinion, represent not only eternal archetypal events, but a certain level of the development of human consc iousness. During my work on this remarkably rich material this connection thrust itself more and more into my mind, so that I should like to define it as the basic idea, as the starting point of my attempt to explain this myth. It was only in 1872 that scholars first became aware of this myth, when the English Assyriologist George Smith made public "The Chaldean Account of the Deluge," as he titled his translation of the eleventh tablet of the epic.

Public Administration and Management: Advantages and Disadvantages of Partnerships in Terms of Improving Service Delivery and Accountability

Before weighing the pros and cons a partnership may bring in terms of improving service delivery and accountablity in public administration, definitions and more information regarding the topic must be laid out. Public administration is generally defind as the development, implementation and study of government policy.For the good of the public, it highlights civil society and social justice. It is also historically referred to as government management, it calls for non- government organizations that do not act out of self- interest.It has become area of discussion which talks about the meaning and purpose of government, bureaucracy, budgets, governance, and public affairs tha take place. Public management that hand in hand works with public administration in achieving public good is the economically driven side of operation of government.It attempts to reemphasize the professional nature of both fields that are connected with one another. Government and non-profit organizations woul d then resemble private sectors in some ways. Even with management tools which are appropriate for public and private domains, there are still differences that make public administration different from being a private sector for it emphasizes the social and cultural drivers of government that many contend (e.g. Graham T. Allison and Charles Goodsell).What should always be kept in mind is that there is always a need for a quality system of public management. This system has to deliver quality and speedy service to the citizens that it serves.When this can be done, a country may progress and prosper. Even after introducing public service reforms such as long queues, delays and bad attitudes of workers towards work and clients, there is still poor service delivery making the objective stated unachieved.Also, another explanation is maybe due to the lack of accountability wherein officials are not always accountable for their work, either to parliament or the citizens concerned. It is im portant that the public service both delivers what is expected of them to the public and at the same time be accountable for the work that they do.To further explain, for any government service, it is fundamental to have a service delivery. Citizens look up to government and its department for their needs and for any services they may need. What of then about public service?It has to fulfill the government’s broad economic and social objective in formulating economic and social policies and implementing public programs which will be used to achieve what is needed.Then it must be asked whether the public service has fulfilled their duties and satisfying citizens’ needs and expectations and whether the service they have delivered is quick, reliable and effective. Meanwhile accountability is imperative as a means in providing quality public service. It is how public bodies should be handled.

Sexual Selection

Sexual selection was an idea proposed by Darwin and refers to the process in which males and females attempt to maximize their chances of reproductive success. Within a species there are certain characteristics that make individuals attractive to potential mates. An example of this is in peacocks, female peacocks are attracted to males with long brightly colored tails, even though this makes them easier to be spotted by predators. This characteristic then evolves within the species due to how males with this characteristic have a higher chance of reproductive success and their characteristics being passed on to surviving offspring.There are 2 types of sexual selection. Intersexual selection takes place when males compete for the attention of a female. The female will play an active role in choosing her mate and will choose the mate with the best characteristics in order to produce the offspring with the best characteristics. The other type is Intrasexual selection. This takes place w hen males compete against each other and are rewarded with the female. The female plays a passive role in this. An example of intrasexual selection is Short’s sperm competition.This suggests that males are motivated to ensure that their sperm is successful in fertilization and can compete against other males. This is essential due to how in some species the female will mate with a number of different males so the male with the best fertilizing sperm will win. In humans this has resulted in men evolving to release much larger amounts of sperm after ejaculation to help increase the likelihood of fertilization. Harvey and May suggested that ethic differences in testicle size may reflect adaptive differences in mating strategies within different populations.Samples showed that Chinese mens testicles were approximately half the size Danish mens testicles. This means a chinese man will be at a disadvantage if the female mates with a numerous amount of males and will most likely ent er a long term relationship in order to create offspring. Males are more likely to use short term mating strategies as a form of producing offspring due to how they have an unlimited amount of sperm compared to women who have limited amount of reproductive opportunities.Clark and Hatfield helped support this by getting female and male experiments to ask male and female participants if they would like to engage in casual sex. 75% of males said yes while every female participant said no. This helps support the sexual selection theory as it shows that females have to be more careful with mating as they only have a limited amount of opportunities therefore are more likely to enter a longterm mating strategy. Males can have casual sex with little investment so are more likely to then females. This study helps to show the gender differences.Much of the research documenting sex differences in mate choice focus on preferences rather than on real life choices. So a male may have a preference but may have to settle for much less. Mate choice is a product of mate preferences form in the environment of evolutionary adaptiveness (EEA). Sexual selection suggests that females prefer males who they can gain benefits from such as gifts. This is shown in male birds who make nests for females in order to mate with them and also in insects who give nuptial gifts. Sexual selection also suggests that females prefer males who have a strong jawline and prominent cheekbones.These characteristics arise because of a strong presence of testosterone which also helps to indicate fertility within males. Penton-voack found that during a women's most fertile time in her menstrual cycle they preferred a male whose face shape was more masculinised (strong jawline etc.. ) Suggesting that females like males who show high levels of testosterone, supporting sexual selection theory. Buss explored whether there were universals of human mate preference. His research spanned across 37 cultures and invo lved 10 thousand participants of different religion,ethnic and economic groups, increasing the validity of the study.He then made the study even more ecologically valid by varying the sampling procedure per culture. Results showed that women in all cultures show a preferences for men with resources while males placed more emphasis on women's attractiveness as it is an emphasis on their physical health. This supports the claims made by the sexual selection theory that women will form relationships with men for resources as it will benefit them and increase the survivability of their offspring which is a woman's main evolutionary goal.A problem is in some cultures arranged marriages is the normal and individuals have no choice on their mate as it is already chosen by their parents, so the studies validity can be questioned as this will affect the results obtained. Buss further helped to supported mate choice by looking at real marriages. He found that when males divorce many of them g o for younger women when they choose to marry again. This is due to how men will want to be in a relationship with women in their most fertile age and the younger the woman is the more chance of reproductive success the male his.This helps to support the evolutionary theory that a mans main goal is to produce as many surviving offspring as possible. The evolutionary approach can be seen as deterministic due to how it suggests our genes specify exactly how we will behave. The approach fails to take into account that our genes are not the only thing that determine how we behave, the environment in which we grew up in will also have an effect on us. This is known as the nature vs nurture debate where it is argued if our biological factors or the way in which we are brought up makes up how we behave when we grow up.The evolutionary theory suggests that rape is an evolved and adaptive behaviour which enhance reproductive success. Sterglanz and Nash suggest that the theory offers justific ation for rape as it explains why males who can’t compete with other males for resources and women will produce offspring. This is socially sensitive and has been met by much hostility from the general public and women psychologists due to how it is an issue which negatively affects the lives of many.The evolutionary theory is also seen as reductionist as it explains humans reproductive behaviors as a result of our genes, ignoring the environmental actors which also decide our behavior. The approach also ignores homosexual relationships and only accounts for heterosexual relationships and the roles in which men and women take. To conclude the sexual selection theory helps to explain that males and females attempt to maximize their reproductive success by getting with a partner with certain characteristics, these characteristics will then evolve over time due to how individuals in a species with these characteristics will have a higher chance of reproductive success

Systematic and Systemic

Systematic and Systemic Systematic and Systemic Systematic and Systemic By Maeve Maddox Mark, one of our readers, requests a discussion of the difference between systematic and systemic. Both adjectives derive from the noun system which, in late Latin, meant a musical interval, that is, a difference in pitch between two notes. While retaining its original meaning, the Latin word came to mean, in addition: a union of several metres into a whole, the universe, body of the articles of faith, an organized whole, government, constitution, and a body of men or animals systematic [sis tuh MA tik] In its most common use by the general speaker and writer, the adjective systematic means Arranged or conducted according to a system, plan, or organized method. A novelist, for example, may have a systematic method of organizing note cards. More specialized meanings of systematic occur in the writings of philosophers, statisticians, and biologists, as the following examples from the OED illustrate: Logic: When the same words are used in sentences which express different kinds of propositions, yet in each case the usage is significant, then these words are said to have ‘systematic ambiguity’ This ambiguity is systematic because it can be formulated according to a rule. Statistics: an error with a non-zero mean, so that its effect is not reduced when observations are averaged. Natural history: Pertaining to, following, or arranged according to a system of classification; of or pertaining to classification, classificatory. systemic [sis TEM ik] Note: Beware the pronunciation. I once heard a radio reporter pronounce it as sus tee mik.) The adjective systemic is chiefly a scientific term meaning belonging to, supplying, or affecting the system or body as a whole. It is often used to refer to a condition that affects the nervous system in particular. Read the labels on your gardening supplies. If your herbicide, insecticide, or fungicide is described as systemic, it kills the pest youre after by entering its system and making its way throughout the plants or animals tissues. In 1961 M. A. K. Halliday came up with the term systemic grammar to describe a method of linguistic analysis. The rationale for the use of systemic instead of systematic in this instance eludes me, but then, so does the meaning of this OED example which records the use of the expression: The grammar that assigns to sentences structures like the one in Fig. 1 is generative fusion of elements of American-style immediate-constituent analysis, European-style dependency theory, and British-style systemic grammar. Unless you are referring to an organism, you probably want the word systematic. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:When to Capitalize Animal and Plant NamesLatin Plural EndingsKn- Words in English

Free Essays on China U.s Relations

The main focus of this paper is to analyze the Sino-American relationship and the factors both past and present that make it a complicated and very important issue, as well as future expectations for the development of continued relations. American contact with China in the past has been less than positive and China is a country that values respect and honesty in its value system. China and the USA do not share the same view of the world. There has been much misunderstanding and even underhanded policy when it came to the USA, especially with the changing of our presidents. Clinton was a strong supporter of having Asia involved in the future of America. He urged that China become a part of the World Trade Organization to make the relationship that of a partnership. He had been quoted as referring to China as a strategic partner while Bush described China as a strategic competitor. (Tyler p1) Imagine the shock of China to be turned from favored friend to possible enemy within the period of less than a year. In my opinion this is a relationship that both sides can mutually benefit from however up until this point it has been clouded by great egos and failed policies. This is an extremely important issue to discuss because China is one of the largest nations in terms of billions of people, as well as an upcoming superpower. In the future China will become stronger in terms of production and business, and the USA would be wise not to cause permanent damage by ignoring treaties and past foreign policy. America must remember they cannot change the rules of the game in the middle of playing! America is a democratic nation that values human rights, and in that platform fights a moral war naturally which would put the USA at odds with China on more than one issue. My personal expectations for the future of China and America’s diplomatic relationship is that it will continue to deteriorate if the USA does not find a better way to d... Free Essays on China U.s Relations Free Essays on China U.s Relations The main focus of this paper is to analyze the Sino-American relationship and the factors both past and present that make it a complicated and very important issue, as well as future expectations for the development of continued relations. American contact with China in the past has been less than positive and China is a country that values respect and honesty in its value system. China and the USA do not share the same view of the world. There has been much misunderstanding and even underhanded policy when it came to the USA, especially with the changing of our presidents. Clinton was a strong supporter of having Asia involved in the future of America. He urged that China become a part of the World Trade Organization to make the relationship that of a partnership. He had been quoted as referring to China as a strategic partner while Bush described China as a strategic competitor. (Tyler p1) Imagine the shock of China to be turned from favored friend to possible enemy within the period of less than a year. In my opinion this is a relationship that both sides can mutually benefit from however up until this point it has been clouded by great egos and failed policies. This is an extremely important issue to discuss because China is one of the largest nations in terms of billions of people, as well as an upcoming superpower. In the future China will become stronger in terms of production and business, and the USA would be wise not to cause permanent damage by ignoring treaties and past foreign policy. America must remember they cannot change the rules of the game in the middle of playing! America is a democratic nation that values human rights, and in that platform fights a moral war naturally which would put the USA at odds with China on more than one issue. My personal expectations for the future of China and America’s diplomatic relationship is that it will continue to deteriorate if the USA does not find a better way to d...

Synopsis of a Contemporary Strategic Issue Essay

Synopsis of a Contemporary Strategic Issue - Essay Example innacle of Japanese innovation, very recently, Toyota has had to recall 8m vehicles due to â€Å"unintended acceleration† (The Economist, Feb 11, 2010). Toyota Prius (the hybrid vehicle) has developed problem with brake pedals that refuse to open (The Economist, Feb 9, 2010) and 440,000 vehicles would have to be called back. The firm’s reputation for quality on which the organization was built has been shattered. Toyota is busy chasing volumes at almost any price. Its global market share has fallen to 11.8% from 13.1% (Appendix A). The business environment is currently turbulent and according to Ansoff, to survive and succeed in an industry the firm must be able to match the aggressiveness of its operating and strategic behaviours (Thompson & Martin, 2005). The business environment is characterized by several factors and the resources of the organization and the values must be congruent to the needs of the environment. Changeability of the market environment- the current market is turbulent due to global economic downturn. Besides, due to the large amount of vehicle recall, Toyota’s market capitalization has dropped. The cost of recall is $2bn dollars (The Economist, Feb 9, 2010). Globalization, individualizations, digitalization and increasing competition have increased the speed at which change is taking place in the industry (Jain & Garg, 2010). The car makers can now expand to new markets a fast pace. Fertility of technology: The firm has always prided itself in being leaders in innovation but the cars rolled out recently have problems with brakes. The floor mats are badly fitted. All these suggest that the organization has to rethink its outsourcing policies. Toyota has depended on several layers of suppliers which has helped them to reduce the costs (SD, 2006) but they need to take note that most of the accelerator pedals were supplied by American parts-maker (The Economist, Feb 11, 2010). However, many automakers use the same suppliers and a domino