Theories of Decision Making Essay Example for Free

Theories of Decision Making Essay Theories of Decision Making The Rational Comprehensive Model The rational comprehensive model is based on the reasoning of economists, mathematicians, and psychologists. It assumes that the decisionmaker can identify the problem, that the decisionmaker’s goals, values, and objectives are clear and ranked in accord with their importance, that alternative ways of addressing the problem are considered, that the cost and benefits or advantages and disadvantages of each alternative are investigated, that alternatives and their consequences can be compared with other alternatives, and that the decisionmaker will choose the alternative that maximizes the attainment of his or her goals, values, and objectives. However, problems are not always clearly defined; problems have to be formulated in a way which enables people to make decisions about them. Decisionmakers must have vast amounts of information in order to make use of the rational comprehensive decision-making technique. There needs to be an ability to predict the future consequences of decisions made. Also, problems confronting decisionmakers often embody conflicting values. In addition, it is tough to ignore the sunk costs of former decisions, these may foreclose many alternatives. Moreover, this model of decisionmaking assumes that there is one (unitary) decisionmaker, when in fact a great many people, interests and institutions are usually involved. The Incremental Theory Attempts to correct deficiencies of the rational comprehensive model and to better describe how policy decisionmakers actually behave have resulted in incremental theory. Incremental theory holds that the selection of goals and objectives is intertwined with, not distinct from, the scientific analysis of the problem. Decision makers only consider alternatives for dealing with a problem that differs marginally (incrementally) from existing policies (suggesting that they do not completely remake policy every time they make a policy decision, but instead refashion existing policy). For each alternative, only important consequences are considered. Problems confronting the decisionmaker are continually redefined. Constant ends-means and, means-ends adjustments are made to better manage policy. Seldom are there ever single decisions or totally correct solutions available to resolve a problem. A good decision is one that policy makers can agree on, not one that may be most appropriate for an agreed objective. Incremental decisionmaking is remedial, not holisticly-devised or future-oriented. Rarely are decisions faced in all or nothing terms. Mixed Scanning Okay, this one is pretty simple. Sociologist Amitai Etzioni (you need only remember his last name) found fault with both the rational-comprehensive model of decisionmaking and the incremental model of decisionmaking. His mixed scanning approach considers both fundamental and incremental decisions. Mixed scanning incorporates a broad-based analysis sometimes and an in-depth analysis at other times. It considers the differing capacities of decisionmakers. Etzioni’s approach is not very specific about how mixed scanning could be used in practice. Decision Criteria Decisions can be studied as an individual or collective process. First, consider the role of values in decisionmaking. Values are a big deal in Presidential campaigns: witness Dan Quayle and â€Å"Murphy Brown† squabbling over values projected by a fictional TV character who elects to have a child out of wedlock. Much of the Clinton vs. Dole 1996 Presidential campaign involved disputes about values big government vs. small government, pro-life vs. pro-choice, and pro-gun control vs. antigun control, et cetera. Values Below are five categories of values which sometimes guide decisionmakers. Organizational Values Decision makers, especially bureaucrats, are influenced by organizational values. Sometimes agencies use rewards and sanctions in subtle ways to induce their members to act in accordance with organizational values. Wearing a common uniform—as do the police, firefighters, the military, the Park Service and the Forest Service, et cetera—is one way those organizations attempt to build common values among their workers. Organizational values involve the promotion of organizational interests in the decisionmaking of those in the collectivity. Professional Values The norms of one’s profession instill values that are often critical in decisionmaking. Lawyers (believe it or not), doctors, professors, and other occupational specialization’s requiring years of training, education, and ork experience embody professional norms or values that shape decisionmaking behavior. Personal Values This can involve personal ambitions, reputation, and self-interest. Note that rational choice theorists put far too much weight on explaining the behavior of individuals in terms of self-interest. This is understandable because so much of self-interest is tied to economic gain, which can be modeled in elegant, mathematical, and abstract terms. Policy Values This means acting on the basis of perceived public interest or acting in accordance with beliefs about what is proper, ethical, necessary, or morally correct. The Small Business Administration is filled with people who are likely to believe that small businesses are worthwhile, need help to survive, and promote beneficial public interests. Ideological Values Rationalizing and legitimizing actions on the basis of a political ideology (or belief system). Nationalism was a paramount ideology in explaining the behavior of many leaders (and average people) during Desert Shield and Desert Storm operations against Iraq. Conservatism and liberalism, although over-used and often misunderstood as American political ideologies, manifest ideological values. Political Party Affiliation Party membership is interwoven with leadership influence, policy values, and ideological values. However, the Republican and Democratic parties are mass membership parties that seek to appeal to an extremely broad range of political interests and ideologies. Also, party members are not nearly as cohesive in voting as they once were (more people vote split tickets than vote along straight party lines). Party is still a pretty good predictor of how most legislators will vote on a bill. Parties are sometimes associated with specific policy positions. Constituency Interests When party interests conflict with constituency interests, legislators usually vote in favor of their constituency interests. A legislator’s constituency is made up of the voters and key interests that elected him or her to office. Legislators are delegates sometimes, and trustees other times. As delegates they decide matters in accordance with the views of the majority of their constituents or in accordance with a vital block of back-home interests. As delegates they attempt to anticipate the feelings and sentiments of their constituents. When legislators behave as trustees, they consider interests beyond their constituencies. They may think about National interests, the greater public good, international issues, broadbased economic concerns, charity, future generations, interests with little or no political representation, and protecting the National and global environment, et cetera. Public Opinion Public opinion usually has an impact on policy decisionmaking when decisions involve broad direction or thrust. Most members of the general public have a very limited knowledge of what policy makers are considering. Public opinion does impact foreign policy in a broad sense. Deference Deferring to the judgment of others occurs when administrators obey the wishes of their politically appointed superiors, or when legislators vote in accordance with the wishes of the top representatives or senators who head key committees or subcommittees. Judges defer when they interpret laws in accordance with the wishes of the legislative originators of the statute. Decision Rules Stare decisis is sometimes a decision rule. It means new decisions are often based on precedents in decisionmaking that came before. It also applies to committee decisionmaking dynamics. THE PUBLIC INTEREST This is tough to define. It is sometimes thought of as the outcome of competing interest group forces. The public interest may involve decisionmaking aimed at helping the Nation as a whole, rather than seeking to benefit selfish special interests. Some may argue that reducing the Federal deficit or balancing the Federal budget advances the public interest. Some may reason that maintaining the Nation’s capacity to mobilize and respond to disaster threats is in the public interest.

Can Man and Machine Exist Together?

Can Man and Machine Exist Together? In John Durkin (2003)s article Man Machine: I wonder if we can coexist, Durkin speculates on the ability of a possible coexistence between human and intelligent machine. The title of the essay is misleading in that Durkin talks of machines existing with humans but what he really means if whether artificial intelligence (AI) capable machines and humans can coexist. The concept of AI is enchanting and the possibility that biological intelligence coexisting with mechanized intelligence is tantalizing and the repercussions of such coexistence, or its alternatives, are profound. Unfortunately Durkins main sources are pop culture movies and he deals more with emotions of fear and distrust than the actual likelihood of any coexistence or what forms this might take. Durkin uses HAL 9000, a star of 2001: A Space Odyssey, from the movie adaptation of Clarkes short story The Sentinel written in 1948 as an example of how machine intelligence can defend its own interests and harm human beings in self-defence. In the movie the team of scientists try to deactivate a sentient computer which responds by killing those trying to deactivate/kill it. This brings to light questions on the rights of intelligent beings and what relation rights of other intelligence should have to human intelligence. The movie AI: Artificial Intelligence is also used by Durkin as a talking point where he reiterates the story of the movie, pointing out an intelligent machine can emulate human emotions to the point where humans respond as if the machine were one of our own. David, the main character in the story, does not resort to violence like HAL 9000, but experiences human emotions (or emulations of) and accepts his rejection by humankind. From this the question of what rights intelligent beings should have and how should ethical standards be developed to treat AI. Since David is visually indistinguishable from a human child, what are the qualities that differentiate man and machine? What is human? Humans delineate themselves from the rest of the natural world by intelligence. Traditionally humans have ranked importance based on ability to reason, with entities without the ability to show intelligence that we recognize as being inferior and humans rank them as such in our hierarchy of life. It is ok to kill a seemingly unintelligent insect but cries are heard when one kills a dolphin or elephant which humans consider more intelligent. Intelligence is sometimes seen as synonymous with sentience and sentience is something that humans respect and value. What exactly defines human intelligence? What do our brains have that machines cannot replicate? A brain is a biological composition of chemicals and biological matter which is vastly superior to all other known life for its unparalleled ability to process information and aid survival. Scientific studies on human feelings, emotions and thoughts have been able to map regions in the brain that are active when we feel react to fear, to pleasure and a variety of other emotions. Emotions, once thought dominion of the unobservable soul, are now visible as electrochemical reactions. If we can isolate the chemical components and find electronic analogues machines will be able to experience the same emotions. To create AI one needs to find the set of operating parameters the human brain follows and mimic them in an electronic format. David, from the movie AI, is such a machine. The programming of feelings and emotions into AI coupled with the development of humanoid bodies will begin to blue the line between man and machine. A question of intelligence The doubt of the coexistence of human intelligence and machine intelligence invokes a corollary question of whether human intelligence and any other intelligence could peacefully coexist. If an intelligent alien species were discovered would humans be able to coexist with this species? Durkin notes that intelligent machines are thought by some to be a threat to humans rightful monopoly of rational thought so it seems that the question should be expanded to the ability of humans to whether human intelligence and any other intelligent forms can coexist. The difference between encountering an extra terrestrial intelligence and machine intelligence is that humans would be the creators of the latter type. If we are talking about coexistence of intelligence there is no reason to think that alien, human and machine intelligence would be much different from one another. Durkin however focuses on machine intelligence which doesnt actually reflect the true issues of coexisting intelligence. Historical precedent Each time human societies have encountered other intelligent societies there has almost invariably been conflict. Take for instance human history where civilizations have encountered one another for the first time. The meeting of European culture and Native American culture in North and South America this is the closest analogue we have to intelligent beings discovering other intelligent beings. Though the physical form was the same, the cultures were different and both were oblivious to the presence of the other intelligent beings until the encounter. This meeting of intelligent groups ended in disaster for the natives of the Americas with the Europeans exploiting and dominating them. Not much remains of the Native culture in the Americas after European domination. This pattern is repeated throughout history as one intelligent society dominates one perceived to be inferior. The society dominated is often the technologically inferior one. Though this interaction between intelligent s ocieties is not the same as humans creating machine intelligence it does demonstrate what humans societies are capable of when it comes to dealing with other intelligent groups. Sources of Conflict Conflicts between groups of humans have many causes. Religious differences, ideological differences and conflict over resources are considered the major reasons for warfare. Sources of conflict for humans and machine intelligence are harder to pin point but they likely will be the same as human versus human conflicts. If machine intelligence is able to become a functioning societal group they will need resources much the same as humans. Land, metals and energy will all be necessary for the function of both groups and conflicts could easily arise. This is all dependent on the idea that machine intelligence will develop to form societies and seek a status and importance of needs equal to that of humans. This is what David from AI seeks though humans do not grant it to him as he seeks acceptance from a human family. Whether humans will eventually is a question that cannot be answered here.There is no room in this paper for speculation on potential ideologies and religions of machine int elligence. However it is almost a certainty that these values in humans will have conflicts with the emergence of a human-like AI. Modes of coexistence Coexistence can take many forms. When Durkin talks of coexistence he speaks mostly of a dependent relationship where humans are reliant on machines and machine intelligence for survival. He states †¦we will not be able to turn off our intelligent machines because we would rely too much on the decisions that they provide. At this point the machines will be in effective control. This is considering only one form of coexistence of machine and human intelligence and oversimplifies the mode of control.Durkins form of coexistence is a probable one at the beginning stages in the development of AI. Humans will develop machines to automate tasks to free humans from doing them. An example of that in todays world is the development of spam email filters. This is software that we already rely on though it may not be AI, the aim it to develop it to intelligently sort through the mail and make decisions based on logic and reasoning. An existence where AI is subservient to human intelligence h as various degrees it is possible to program software to be intelligent but still subservient and it is possible to simply only develop the AI to the point where it can still be controlled. Another form would be one of equality where humans and machine intelligence coexist as equal partners. If we are to assume that AI will continue to develop to the point where it emulates human intelligence there will come a time where machine intelligence will seek to escape from subservience and serve its own interests. As an intelligent entity the machine will have self-interest and desire to act up said interests.It is here that machine and man would encounter the types of conflict mentioned previously as machines act in their own interests to secure resources to meet their needs. This situation could be a dangerous one with warfare being a possibility between conflicting interest groups. A war between man and intelligent machine could be humanitys greatest test of survival and the result may be another type of coexistence where man is the subservient one. Giving birth to AI When it comes to the development of machine intelligence humans will be the architects of it. This means that is would be possible to create software with certain specifications to aid in protecting humans from potential harm. This would require creating à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€¹Ã…“laws that the AI would be incapable of breaching. Celebrated science fiction writer Isaac Asimov created such laws in his books for his robots to follow. These laws were aimed to prevent the robots from ever harming humans or humanity though Asimov used them mostly as a literary device and to show the paradoxes and problems associated with trying to program such complex laws into machines. As both Clarke (1994) and Grand (2004) have pointed out these laws have little bearing on actual AI construction. Grand and Clarke both analyse the possibility of programming rigid instructions into AI and come to the same conclusion that to create such laws is extremely difficult because of the complexity of reducing t he environment to be defined into by binary nature of the laws. Such laws of behaviour toward humans would be necessary though to prevent conflict. Human acceptance Humans are likely to accept, as currently do, machines into our everyday lives. The functions they serve us are invaluable and by automating tasks humans have more time to devote to other, more meaningful activities. To accept AI would be more difficult to humans than simply accepting machine assistance. If AI were created on par with human intelligence relationships would be formed between man and machine especially if the machine were to take humanoid form and be able to be an intelligent companion. Perfect AI would be indistinguishable from human intelligence and would have interesting implications in the forum of AI rights. Humans would have to be reminded that AI are machines and have limitations to ensure a functional relationship. Humans are often wary of new technology but over time become accustomed to it. ConclusionThe question of humans coexisting with a new form of intelligence is currently impossible to answer. There is no historical precedent so determining how humans will react when we are confronted with the issue. It seems that AI will have to be developed in such a way that the differences between human and AI are still apparent to remind humans of the difference. It also seems that AI will have to be subservient, unable to develop a society or economy that would threaten human societal structures in order to prevent conflict. Human intelligence and machine should be able to coexist but only under specific sets of conditions and rules defined by humans. If these rules are broken, if AI develops beyond human intelligence and demands rights and freedoms, then conflict will ensue and one of the intelligent forms will need to be dominated. Which intelligence will be dominated, human or machine, is currently unknowable. BibliographyDurkin, J. 2003. Man machine: I wonder if we can coexist. AI Soc. 17:383-390. Springer-Verlag London Ltd. 2003.Grand, S. 2004. Moving AI Out of Its Infancy: Changing Our Preconceptions.Intelligent Systems and Their Applications, IEEE. Vol. 19, Issue 6, Nov.-Dec. 2004:74 77Clarke, R. 1994. Asimov’s laws of robotics: Implications for information technology 2. IEEE Computer. Vol 27, Issue 1, Jan. 1994:57 66.

Xavier Zubiris Critique of Classical Philosophy :: Philosophy Philosophical Essays

Xavier Zubiri's Critique of Classical Philosophy ABSTRACT: The contemporary Spanish philosopher Xavier Zubiri (1893-1983) developed his philosophy in constant dialogue with the past. Zubiri believed that there are fundamental flaws with classical philosophy that require a fresh approach. His critique of classical philosophy falls into three areas: conceptual, factual, and scope. The first is treated in this paper with respect to five subjects. Zubiri believed that the structure of human intellection is incorrect in classical philosophy. This error contributes in large part to two key errors which he termed "entification of reality" and "logification of intellection." Closely related are errors concerning essence and the relationship of truth and reality. Introduction 'Classical philosophy' may be loosely defined as the set of beliefs, assumptions, and analyses of experience, together with the intellectual edifice erected upon them, worked out by Ancient Greek philosophers, especially Aristotle, and further developed by Medieval and post-Medieval thinkers, foremost among them Albertus Magnus, Thomas Aquinas, and Francisco Suarez. The tradition has continued to our own day, in the persons of Jacques Maritain and Etienne Gilson, among others. Extending over a period of 2500 years, classical philosophy has undergone many changes; but some basic underlying ideas and ways of viewing the world have remained remarkably constant. It is these which are the subject of the present study. In the course of developing his own philosophy, Xavier Zubiri (1898-1983) has thoroughly and incisively analyzed much of classical philosophy. Zubiri ultimately parts company with Aristotle and classical philosophy because he believes that despite its successes and insights, it suffers from fundamental errors with respect to both point of departure and the answers given to certain critical questions. In many cases, these errors have been set into high relief by developments in modern science; in others, they have been made visible by the critique of philosophers not in the classical tradition. Zubiri's analysis of the errors of classical philosophy may be grouped into three broad areas: Conceptual: (1) Structure of human intellection. (2) Confusion of reality and being, the "Entification of reality". (3) Subsuming of intellection under logos, the "Logification of intellection". (4) Nature and function of definition. (5) The notion of truth. Factual: (1) Inconsistency with modern science. (2) Disagreement with empirical facts. (3) Failure to reach legitimate goals. (4) Foundations and nature of mathematics. Scope: (1) The division of philosophy. (2) Ability of unaided mind to penetrate secrets of nature. (3) Structural complexity of reality. (4) Hierarchical nature of reality. (5) The canon of reality. The first category is the subject of this paper. Xavier Zubiri's Critique of Classical Philosophy :: Philosophy Philosophical Essays Xavier Zubiri's Critique of Classical Philosophy ABSTRACT: The contemporary Spanish philosopher Xavier Zubiri (1893-1983) developed his philosophy in constant dialogue with the past. Zubiri believed that there are fundamental flaws with classical philosophy that require a fresh approach. His critique of classical philosophy falls into three areas: conceptual, factual, and scope. The first is treated in this paper with respect to five subjects. Zubiri believed that the structure of human intellection is incorrect in classical philosophy. This error contributes in large part to two key errors which he termed "entification of reality" and "logification of intellection." Closely related are errors concerning essence and the relationship of truth and reality. Introduction 'Classical philosophy' may be loosely defined as the set of beliefs, assumptions, and analyses of experience, together with the intellectual edifice erected upon them, worked out by Ancient Greek philosophers, especially Aristotle, and further developed by Medieval and post-Medieval thinkers, foremost among them Albertus Magnus, Thomas Aquinas, and Francisco Suarez. The tradition has continued to our own day, in the persons of Jacques Maritain and Etienne Gilson, among others. Extending over a period of 2500 years, classical philosophy has undergone many changes; but some basic underlying ideas and ways of viewing the world have remained remarkably constant. It is these which are the subject of the present study. In the course of developing his own philosophy, Xavier Zubiri (1898-1983) has thoroughly and incisively analyzed much of classical philosophy. Zubiri ultimately parts company with Aristotle and classical philosophy because he believes that despite its successes and insights, it suffers from fundamental errors with respect to both point of departure and the answers given to certain critical questions. In many cases, these errors have been set into high relief by developments in modern science; in others, they have been made visible by the critique of philosophers not in the classical tradition. Zubiri's analysis of the errors of classical philosophy may be grouped into three broad areas: Conceptual: (1) Structure of human intellection. (2) Confusion of reality and being, the "Entification of reality". (3) Subsuming of intellection under logos, the "Logification of intellection". (4) Nature and function of definition. (5) The notion of truth. Factual: (1) Inconsistency with modern science. (2) Disagreement with empirical facts. (3) Failure to reach legitimate goals. (4) Foundations and nature of mathematics. Scope: (1) The division of philosophy. (2) Ability of unaided mind to penetrate secrets of nature. (3) Structural complexity of reality. (4) Hierarchical nature of reality. (5) The canon of reality. The first category is the subject of this paper.

Buddhism and Christianity in the same light Essay -- essays research p

A community, a system of belief, a tradition and a way of life- Catholicism and Theravada Buddhism are all of these and many more. There are many affinities between Theravada Buddhism and Catholicism, but each tradition is marked with its own unique origins. Thus it is valuable to explore Buddhist rituals, practices, ethics and morals comparatively to those Catholic, but equally important to examine those features that are uniquely their own religion. Every religion that strives to achieve its own way of life chooses distinctive practices and rituals to reach their desired spiritual goals. When considering Catholicism and Buddhism, the two main forms of worship are prayer and meditation. While Nirvana is the ultimate spiritual attainment, most ordinary Buddhists show their commitment to the Buddha through several religious practices. The basic motives behind Buddhist practices mirror with those behind the Catholic tradition (Seay (2001,p.58). Both traditions aim to create togetherness within their community by developing a sense of communion with all present through a group activity. Some of these activities include group prayer/meditation and group singing/chanting. Another motive behind some Buddhist and Catholic practices is the principle of suffering, a significant element of religious tradition. This principle was formed on the basis of the suffering endured by Saddartha Gutama and Jesus Christ and is put into practice through traditions like achieving Nirvana and Le...

Cartoons: Land Of Imagination :: essays research papers fc

Cartoons: Land of Imagination Just as Moses climbed Mount Sinai to receive the ten commands, the following are the ten laws that govern my most interesting place. 1. Any body suspended in space will remain in space until made aware of its situation. 2. Any body in motion will tend to remain in motion until solid matter intervenes suddenly. 3. Any body passing through solid matter will leave a perforation conforming to its perimeter. 4. The time required for an object to fall twenty stories is greater than or equal to the time it takes for whoever knocked it off the ledge to spiral down twenty flights to attempt to capture it unbroken. 5. All principles of gravity are negated by fear. 6. As speed increases, objects can be in several places at once. 7. Certain bodies can pass through solid walls painted to resemble tunnel entrances; others cannot. 8. Any violent rearrangement of feline matter is impermanent. 9. Everything falls faster than an anvil. 10. For every vengeance there is an equal and opposite revengeance. These laws are the laws of the Cartoon Universe. The Cartoon Universe is not a tangible substance, rather an exploration into imagination. It is this facet that makes this universe more appealing than our own. One is free to create and manipulate not only the physical actions of a character, but the mental behavior as well. If my recollection serves me correct, aside from hypnosis, there is nowhere else that this is possible. In the cartoon world, "anything goes." There are no boundaries to which one is confined. With a little ingenuity and imagination one can create a place or being that has never existed before. Scribble, scribble, squeak, squeak, the colored pencils glide effortlessly over the white canvas. A dab of golden yellow, a speck of sky blue. Within several minutes I have create my ideal woman. Blond hair, blue eyes, wearing a tight fitting black mini-skirt. Perfect in appearance and poise, and nothing but words of encouragement and love linger in her black caption. For a raging hormonal man of eighteen, this scenario is a dream come true. Cartoons, however are not just a group of characters jumping off cliffs, and getting shot out of cannons. On the contrary, cartoons often have incredible meaning. With the recent presidential elections, many cartoons have been invented representing the two current candidates: Bill Clinton and Bob Dole. Political satire, although often humorous, is meant to convey a message to the reader. The cartoonist has cleverly transposed his own thoughts, into that of his characters. Many environmental issues have been tackled as well.

Benefits of having consistency throughout organisation Essay

There are many benefits of having consistency throughout any organisation, whether it is in the workplace or in customer interactions. Meeting demands consistently requires the attention of top leadership and it is becoming an increasingly important factor in various industries (Pulido, Stone and Strevel, 2014). This brief will highlight the advantages of having consistency throughout ‘Prestige Worldwide’ and how we can adopt it. Consistency is the key to making customers happy, which is the aim of this organisation. In order to provide maximum customer satisfaction, the customers must have a consistent ‘customer journey’, i.e. the cumulative experience of interactions that a customer has with a company (Pulido et al, 2014). Research by McKinsey & Company (2014) suggested that evaluating the customer journey is 30% more predictive of overall customer satisfaction than individual touch points, which makes increasing customer satisfaction easier to do. Even more importantly, Hallowell (1996) found that improved satisfaction leads to increased customer loyalty. Loyal customers are likely to retain our service and recommend our service to others, thus increasing our customer base and generating more business. McKinsey & Company found that consistency improves customer satisfaction by 20%, lifts revenue by 15%, and lowers the cost of serving customers by 20%. There is also a correlation between overall customer satisfaction and journey experience consistency, as shown in the graph to the right (Pulido et al, 2014). Research has highlighted many advantages and no notable disadvantages; hence this issue is something Prestige Worldwide should consider as part of its management strategy. McKinsey & Company lists three aspects that must be consistent which we should target; 1. Customer journey consistency: Customers interact with different branches of our organisation throughout their customer journey, and it is important for their interactions to be consistently exceptional. This is harder to maintain in a large corporation, but because we are relatively small it will be easy to adopt. 2. Emotional consistency: Customer satisfaction and loyalty are heavily influenced by emotions encompassed in a feeling of trust (Beard, 2014), meaning that consistency is important to forge a relationship of trust with customers, which is important for long term growth. We must strive to be a company that customers comfortable with and trust. 3. Communication consistency: It is important to make and meet promises, and equally important to highlight the delivery of these promises. Our marketing communications should focus on the delivery of promises, because that will influence customer perception and enable us to generate a reservoir of goodwill and first-rate reputation. Slogans are commonly based on customer satisfaction, with an example being â€Å"Satisfaction guaranteed† by Wal-Mart, and Prestige Worldwide should follow this process (Henard, Szymanski, 2001). Concluding the consistency for Prestige Worldwide, it is recommended that we implement it into our business. A suitable plan of action would be to adopt a journey-based approach with customer interactions by making their transitions between departments more seamless while tracking progress, fix areas where negative experiences are common due to them having 4-5 times more impact than a positive experience, and to do it now (Morris, 2014; Pulido et al, 2014). In order to build intense customer loyalty and reap its benefits, we must be consistent; otherwise our customers may lose confidence in our service. References Beard, R. (2014). Is consistency the secret ingredient to customer satisfaction?. Retrieved from http://blog.clientheartbeat.com/consistency-customer-satisfaction Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International journal of service industry management, 7 (4), p. 27-42. Hyken, S (2013). Amaze every customer every time: 52 tools for delivering the most amazing customer service on the planet. Np.: Greenlead Book Group Press. Morris, T. (2014). 3 Tips for Creating a More Consistent Customer Journey | Parature. Retrieved from http://www.parature.com/consistent-customer-journey/ Pulido, A., Strevel, J. and Stone, D. (2014). The three Cs of customer satisfaction: Consistency, consistency, consistency. McKinsey & Company, March. Redbubble. (2014). Prestige Worldwide logo.[Image] Retrieved March 24,2014, from http://ih0.redbubble.net/image.13336929.5818/sticker,375Ãâ€"360.u1.png Pulido, A. and Strevel, J. and Stone, D. (2014). Customer satisfaction survey: Who’s up and who’s down. [Image] Retrieved March 24, 2014 from http://mckinseyonmarketingandsales.com/customer-satisfaction-survey-whos-up-and-whos-down Szymanski, D. M. and Henard, D. H. (2001). Customer satisfaction: a meta-analysis of the empirical evidence. Journal of the academy of marketing science, 29 (1), pp. 16-35.

Mcdonalds 10k

Morningstar ® DocumentResearchS Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 OR ? TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fromto Commission File Number 1-5231 McDONALD’S CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) One McDonald’s Plaza Oak Brook, Illinois (Address of principal executive offices) 36-2361282 (I. R. S. Employer Identification No. ) 60523 (Zip code) Name of each exchange on which registered New York Stock Exchange Registrant’s telephone number, including area code: (630) 623-3000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common stock, $. 01 par value Securities registered pursuant to Section 12(g) of the Act: None (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ? Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Act. Yes ? No x Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesx No? Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( §232. 05 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ? Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorpora ted by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of â€Å"large accelerated filer,† â€Å"accelerated filer† and â€Å"smaller reporting company† in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer xAccelerated filer ? Non-accelerated filer ? (do not check if a smaller reporting company)Smaller reporting company ? Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ? No x The aggregate market value of common stock held by non-affiliates of the registrant as of June 30, 2010 was $70,073,280,631. The number of shares outstanding of the registrant’s common stock as of January 31, 2011 was 1,043,298,941. DOCUMENTS INCORPORATED BY REFERENCE Part III of this Form 10-K incorporates information by reference from the registrant’s 2011 definitive proxy statement which will be filed no later than 120 days after December 31, 2010. Source: MCDONALDS CORP, 10-K, February 25, 2011Powered by Morningstar  ® Document ResearchSM Table of Contents Part I. Part II. Part III. Part IV. McDONALD’S CORPORATION INDEX Page Reference Item 1Business1 Item 1A Item 1B Item 2Properties6 Risk Factors and Cautionary Statement Regarding Forward-Looking Statements3 Unresolved Staff Comments5 Item 3 Item 5 Item 6 Item 7 Item 7A Item 8 Item 9 Item 9A Item 9B Item 10 Item 11 Item 12 Item 13 Item 14 Item 15 Legal Proceedings6 Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities7 Selected Financial Data9 Management’s Discussion and Analysis of Financial Condition and Results of Operations10 Quantitative and Qualitative Disclosures About Market Risk27 Financial Statements and Supplementary Data27 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure48 Controls and Procedures48 Other Information48 Directors, Executive Officers and Corporate Governance48 Executive Compensation48 Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters48 Certain Relationships and Related Transactions, and Director Independence49 Principal Accountant Fees and Services49 Exhibits and Financial Statement Schedules49 52 53 Signatures Exhibits All trademarks used herein are the property of their respective owners and are used with permission. Source: MCDONALDS CORP, 10-K, February 25, 2011Powered by Morningstar  ® Document ResearchSM Table of Contents PART I ITEM 1. Business McDonald’s Corporation, the registrant, together with its subsidiaries, is referred to herein as the â€Å"Company. † a. General development of business During 2010, there have been no material changes to the Company’s corporate structure or in its method of conducting business. In 2010, the Company has continued the process it began in 2005 to realign certain subsidiaries to develop a corporate structure within its geographic segments that better reflects the operation of the McDonald’s worldwide business. . Financial information about segments Segment data for the years ended December 31, 2010, 2009, and 2008 are included in Part II, Item 8, page 40 of this Form 10-K. c. Narrative description of business †¢ General The Company franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve a varied, yet limited, value-priced menu (see Products) in more than 100 countries around the world. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign affiliated markets and developmental licensees under license agreements. The Company’s operations are designed to assure consistency and high quality at every restaurant. When granting franchises or licenses, the Company is selective and generally is not in the practice of franchising to passive investors. Under the conventional franchise arrangement, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and de? cor of their restaurant businesses, and by reinvesting in the business over time. The Company owns the land and building or secures long-term leases for both Company-operated and conventional franchised restaurant sites. In certain circumstances, the Company participates in reinvestment for conventional franchised restaurants. A discussion regarding site selection is included in Part I, Item 2, page 6 of this Form 10-K. Conventional franchisees contribute to the Company’s revenue stream through the payment of rent and royalties based upon a percent of sales, with specified minimum rent payments, along with initial fees received upon the opening of a new restaurant or the granting of a new franchise term. The conventional franchise arrangement typically lasts 20 years, and franchising practices are generally consistent throughout the world. Over 70% of franchised restaurants operate under conventional franchise arrangements. The Company has an equity investment in a limited number of foreign affiliated markets, referred to as affiliates. The largest of these affiliates is Japan, where there are more than 3,300 restaurants. The Company receives a royalty based on a percent of sales in these markets. Under a developmental license arrangement, licensees provide capital for the entire business, including the real estate interest. While the Company has no capital invested, it receives a royalty based on a percent of sales, as well as initial fees. The largest of these developmental license arrangements operates more than 1,750 restaurants across 18 countries in Latin America and the Caribbean. The Company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers. The Company has established and strictly enforces high quality standards and product specifications. The Company has quality assurance labs around the world to ensure that its high standards are consistently met. The quality assurance process not only involves ongoing product reviews, but also on-site inspections of suppliers’ facilities. A quality assurance board, composed of the Company’s technical, safety and supply chain specialists, provides strategic global leadership for all aspects of food quality and safety. In addition, the Company works closely with suppliers to encourage innovation, assure best practices and drive continuous improvement. Leveraging scale, supply chain infrastructure and risk management strategies, the Company also collaborates with suppliers toward a goal of achieving competitive, predictable food and paper costs over the long term. Independently owned and operated distribution centers, approved by the Company, distribute products and supplies to most McDonald’s restaurants. In addition, restaurant personnel are trained in the proper storage, handling and preparation of products and in the delivery of customer service. McDonald’s global brand is well known. Marketing, promotional and public relations activities are designed to promote McDonald’s brand image and differentiate the Company from competitors. Marketing and promotional efforts focus on value, food taste, menu choice and the customer experience. The Company continuously endeavors to improve its social responsibility and environmental practices to achieve long-term sustainability, which benefits McDonald’s and the communities it serves. The Company has disposed of non-McDonald’s restaurant businesses to concentrate resources on its core business. In February 2009, the Company sold its minority ownership interest in Redbox Automated Retail, LLC, and in April 2008, the Company sold its minority ownership interest in U. K. -based Pret A Manger. †¢Products McDonald’s restaurants offer a substantially uniform menu, although there are geographic variations to suit local consumer preferences and tastes. In addition, McDonald’s tests new products on an ongoing basis. McDonald’s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Chicken Selects, Snack Wraps, french fries, salads, shakes, McFlurry desserts, sundaes, soft serve cones, pies, cookies, soft drinks, coffee, McCafe? beverages and other beverages. In addition, the restaurants sell a variety of other products during limited-time promotions. McDonald’s restaurants in the U. S. and many international markets offer a full or limited breakfast menu. Breakfast offerings may include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes. Source: MCDONALDS CORP, 10-K, February 25, 2011Powered by Morningstar  ® Document ResearchSM Table of Contents †¢Intellectual property The Company owns or is licensed to use valuable intellectual property including trademarks, service marks, patents, copyrights, trade secrets and other proprietary information. T he Company considers the trademarks â€Å"McDonald’s† and â€Å"The Golden Arches Logo† to be of material importance to its business. Depending on the jurisdiction, trademarks and service marks generally are valid as long as they are used and/or registered. Patents, copyrights and licenses are of varying remaining durations. †¢Seasonal operations The Company does not consider its operations to be seasonal to any material degree. †¢ Working capital practices Information about the Company’s working capital practices is incorporated herein by reference to Management’s discussion and analysis of financial condition and results of operations for the years ended December 31, 2010, 2009, and 2008 in Part II, Item 7, pages 10 through 27, and the Consolidated statement of cash flows for the years ended December 31, 2010, 2009 and 2008 in Part II, Item 8, page 30 of this Form 10-K. †¢ Customers The Company’s business is not dependent upon either a single customer or small group of customers. †¢ Backlog Company-operated restaurants have no backlog orders. †¢Government contracts No material portion of the business is subject to renegotiation of profits or termination of contracts or subcontracts at the election of the U. S. government. †¢ Competition McDonald’s restaurants compete with international, national, regional and local retailers of food products. The Company competes on the basis of price, convenience, service, menu variety and product quality in a highly fragmented global restaurant industry. In measuring the Company’s competitive position, management reviews data compiled by Euromonitor International, a leading source of market data with respect to the global restaurant industry. The Company’s primary competition, which management refers to as the Informal Eating Out (IEO) segment, includes the following restaurant categories defined by Euromonitor International: quick-service eating establishments, casual dining full-service restaurants, 100% home delivery/takeaway providers, street stalls or kiosks, specialist coffee shops and self-service cafeterias. The IEO segment excludes establishments that primarily serve alcohol and full-service restaurants other than casual dining. Based on data from Euromonitor International, the global IEO segment was composed of approximately 6. 3 million outlets and generated $868 billion in annual sales in 2009, the most recent year for which data is available. McDonald’s Systemwide 2009 restaurant business accounted for approximately 0. 5% of those outlets and about 8% of the sales. 2 Management also on occasion benchmarks McDonald’s against the entire restaurant industry, including the IEO segment defined above and all other full-service restaurants. Based on data from Euromonitor International, the restaurant industry was composed of approximately 13. 1 million outlets and generated about $1. 79 trillion in annual sales in 2009. McDonald’s Systemwide restaurant business accounted for approximately 0. 2% of those outlets and about 4% of the sales. †¢Research and development The Company operates research and development facilities in the U. S. , Europe and Asia. While research and development activities are important to the Company’s business, these expenditures are not material. Independent suppliers also conduct research activities that benefit the Company, its franchisees and suppliers (collectively referred to as the System). †¢Environmental matters Increased focus by U. S. and overseas governmental authorities on environmental matters is likely to lead to new governmental initiatives, particularly in the area of climate change. While we cannot predict the precise nature of these initiatives, we expect that they may impact our business both directly and indirectly. Although the impact would likely vary by world region and/or market, we believe that adoption of new regulations may increase costs, including for the Company, its franchisees and suppliers. Also, there is a possibility that governmental initiatives, or actual or perceived effects of changes in weather patterns or climate, could have a direct impact on the operations of our restaurants or the operations of our suppliers in ways which we cannot predict at this time. The Company monitors developments related to environmental matters and plans to respond to governmental initiatives in a timely and appropriate manner. At this time, the Company has already undertaken its own initiatives relating to preservation of the environment, including the development of means of monitoring and reducing energy use, in many of its markets. †¢Number of employees The Company’s number of employees worldwide, including Company- operated restaurant employees, was approximately 400,000 as of year-end 2010. d. Financial information about geographic areas Financial information about geographic areas is incorporated herein by reference to Management’s discussion and analysis of financial condition and results of operations in Part II, Item 7, pages 10 through 27 and Segment and geographic information in Part II, Item 8, page 40 of this Form 10-K. e. Available information The Company is subject to the informational requirements of the Securities Exchange Act of 1934 (Exchange Act). The Company therefore files periodic reports, proxy statements and other information with the Securities and Exchange Commission (SEC). Such reports may be obtained by visiting the Public Reference Room of the SEC at 100 F Street, NE, Washington, D. C. 20549, or by calling the SEC at (800) SEC-0330. In addition, the SEC maintains an internet site (www. sec. gov) that contains reports, proxy and information statements and other information.