The Management of Global Trade Distribution - De Beers Essay

The Management of Global Trade Distribution - De Beers - Essay Example It was able to exert monopolistic influence among suppliers in the diamond industry to sell their rough diamonds to De Beers’ channel which was then the Central Selling Organisation or CSO which then enabled De Beers to control the global supply of diamonds even if the diamonds did not came from De Beer’s mines (Ziminisky2013). II. De Beers distribution system: Monopoly De Beers is one of the few companies that exerted monopoly in its supply and distribution that it creative a competitive advantage for the company. During its height in 1902, it was able to control an overwhelmingly 90 percent of the diamond industry that it can dictate the price and availability of diamonds (Sehgal 2011). Monopoly exists when a only a single company exists to dominate a certain industry in the provision of goods or services (Milton 2002). Its high price today and its perception of being a valued commodity can be attributed to De Beers’ strategy to justify the increase of the pric e of diamonds because diamonds perse have no practical use and its high price does not reflect its scarcity because its price remains high even if it is in abundance (Yu nd). III. Forms of distribution of De Beers: CSO and DTC De Beers is probably the most successful and biggest monopoly company in the world that virtually operated in almost absolute cartel from its beginning in 1800s until 2001. It was able to establish its cartel like monopoly in the diamond industry when Ernest Oppenheimer achieved a controlling stake in De Beers in the mid 1920s when it expanded into various operations of the diamond industry with the goal of monopolizing its distribution. It did so by influencing suppliers in a multitude of ways to sell its produce of rough diamonds to De Beers’ channel which was then the Central Selling Organisation or CSO which then enabled De Beers to control the global supply of diamonds even if the diamonds did not came from De Beer’s mines (Bergenstock et al 2006). De Beer’s cartel like distribution channel which is the Central Selling Organisation or CSO and later evolved to become Diamond Trading Centers or DTC is probably the most successful monopolistic distribution system in the world. It can basically dictate the entire diamond industry because it can determine what should be sold, when, where and how much. Since it controlled majority of the supply (85% to 90% of the market) through its CSO or DTC, buyers have no choice but to avail diamonds through De Beers’ distribution system of CSO or DTC. To be able to buy diamonds from De Beers’ distribution system, it has to become a member or â€Å"Sightholder† because De Beers only sell diamonds to qualified â€Å"Sightholders† until today. According to De Beer, this event of selling diamonds are known as â€Å"Sights† because, â€Å"during the sales period, [their] customers are able to physically inspect the stones we are offering them before deciding whether to purchase† (De Beer 2012). These customers are selected according the â€Å"Supplier of Choice contract  criteria† (De Beers 2012). In essence, however, these â€Å"Sightholders† are powerless during â€Å"sights† because they have to accept the terms set forth by De Beers where they are not allowed to negotiate and can only accept

Assess the claim that progress has stalled in terms of raising the Essay

Assess the claim that progress has stalled in terms of raising the proportion of women in senior executive and boardroom positio - Essay Example As argued by Howard and Wellins (2008) â€Å"in all major global regions, women are more likely than men to fall off the management ladder before reaching the top† (p. 6). They explained this through the theory of ‘push’ and ‘pull’ factors which involves an array of economic, organisational, and social aspects. Push factors refer to passive or unfulfilling jobs. On the other hand, the pull factors are life situations that force women to leave their jobs like health problems, family commitments, or caring obligations (Howard & Wellins, 2008). A recent study by Schneer and Reitman looked at the effects of career preference and outcomes for women in comparison to men in managerial positions (Bilimoria, 2007, p. 21). They discovered that the effect of gender differences on the work setting for women in comparison to men with MBA degrees was more pronounced in later than earlier career phases. Numerous researchers have observed that organisations are †˜gendered’, and hence view of career plans is expected to have more unfavourable effects for females than males (Fagan et al., 2012). Thus, what is most important is possibly not the quantity of work but the quality and nature of that work, particularly for career women. Another major phenomenon that has been given much emphasis recently is the issue of whether part-time job characterises unfavourable reduced work or favourable flexible work patterns for employees, particularly women. Several researchers report that women prefer or are more contented with part-time job than men, because this work arrangement offers flexibility (Burke & Mattis, 2005). Nevertheless, stages of part-time work have detrimental effects on pay, and females are more likely than males to engage in part-time jobs. This implies that earlier assumptions that career women with children can gain from part-time work arrangement without considerable negative impact on present and future career opportunities or outcomes could be flawed, especially in early stages of career (Durbin & Tomlinson, 2010). It is possible that these kinds of interruptions are not merely cutbacks in work time, but also signify a reduction or impediment in status that is disadvantageous for the women’s future career outcomes. Some claim that the higher probability of a women engaging in part-time work compared to men occupying part-time jobs signifies the likelihood of preserving or reinforcing the inferior standing of women in society (Liff & Ward, 2001). Findings on job satisfaction show that women who are voluntarily engaged in part-time jobs usually agree to weaker job security and lower pay in return for less stress and more favourable working arrangements. Mothers are usually more likely than childless women to work part-time because it facilitates reconciliation of domestic and career obligations (Durbin & Tomlinson, 2010). Mothers in the UK, the Netherlands, Luxembourg, Germany, and Austria are s pecifically likely to engage in part-time job (Rubery, 1998, 200). According to Wirth (2004), the inadequacy of quality, inexpensive childcare compels many women with children to accept part-time work arrangements. Women, across all sectors, are currently engaged in managerial work but are less likely to occupy higher level leadership positions, suggesting that obstacles to women’s career progression are still existing. The number of women occupying senior management and board positions across the globe are few compared