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GAZI: What’s next?
Prof.Dr. Vasilika Kume1
“You never know what lies over the next hill, but I am confident that whatever happens I will think on my feet.” Gazmend Haxhia

On a Saturday afternoon in the summer of 2010, Gazmend Haxhia (Gazi), President of Albanian Center of Management Services and Avis Rent a Car Albania, together with Anila his business partner and wife of nine years were sitting in their office in Rogner Hotel in Tirana and contemplating the future of their multiple businesses. As Licensee Proprietor and President of Avis Rent A Car Albania, Managing Director of the OPEL General Motors Albanian Representation, Co-Chairman of Albanian Center for Management Services (ACMS), Owner of Albanian Experience travel agency, Cofounder of the architecture and urban planning academic institution Polis University, Gazi has worked hard to effect change and produce businesses reflecting the intersection of entrepreneurship, creativity, fairness and sound management. Everyone would have envied this career – and all in only 15 years. But Gazi was not satisfied, and with the enthusiasm of an eternal optimist that is a landmark trait of Gazi‟s, he was posing the next challenge: What lies next as the growing of existing businesses was not what he was looking for? Gazi was thinking about „The Next Big Thing.‟ He felt himself at a crossroads: What‟s next? Embarking on something new? Is identifying growth areas the new challenge for the future? Other questions which crossed his mind: How to run existing and new businesses? Are 24 hours a day enough? Will physical time be a serious obstacle for him? Is he supposed to create a line of managers, willing to take the right responsibility? As Gazi was pondering some options, he started to question himself: Why was he not content with what he had achieved so far? Is it time to dedicate more to his family? The quick response: No, we have to strike to make our home, our business and our country better working and living places.


Vasilika Kume is professor near the Department of Management, Faculty of Economics and Business, Tirana University. She deals with strategic Management and Managerial Decision Making subjects. Since 1998 she is Executive Director of Master Program in this Faculty. Prof. Dr. Vasilika Kume prepared this case under the supervision of Professor Derek Abell. Prof. Derek Abell is Academic Director of the IMTA Case Writing Module. He is at the same time founding president and professor emeritus, ESMT-European School of Management and Technology, Germany. This case is prepared as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.

GAZI: What’s next?


Gazi’s Early Years: A Challenging Childhood
Born in 1968, Gazi graduated with honors in 1990 from the Faculty of Foreign Languages in Tirana University with a bachelor‟s degree in English. He was awarded as one of the two best students of the year. “During my school years, my sisters and I secretly listened to Voice of America in order to practice English,” Gazi recalls. Besides school, he worked part time as a tour guide. Born and raised in Tirana, Gazi was the youngest of three children with two elder sisters. His parents came to Albania as refugees in 1944 with Cham roots2. His father was a tailor, who devoted his life to his children. The strong family values, combined with relative financial comfort enabled Gazi to experience a happy and loving childhood. He was the classic youngest child, highly driven to achieve great results. His natural way of assuming and performing leadership positions made it easy for Gazi to meet his father‟s high standards and expectations of him. Asked to whom he most attributes his success, Gazi responds, “My inspiration is my father, a born entrepreneur in the way of thinking”. During the dictatorship of Enver Hoxha, private occupational practice was forbidden, so his father secretly practiced the profession of tailoring. “I remember,” says Gazi, “when we placed blankets over the windows, so that the neighbors could not notice that my father worked at night hours. We laughed fondly and said, „The concert has begun.‟ Growing up, I didn‟t have my own bed. Nevertheless, my two sisters and I continued onto university and excelled.” Two pivotal experiences paved the way for Gazi‟s future success. The first was the opportunity to have post graduate studies in Columbia University in New York City. The second major experience was his work as aide to then Prime Minister of Albania (1994-1996). Working for the state, Gazi not only understood that he was not the right person for that job, but he learned a lot about leadership. He learned how to „win and lose,‟ how to be a good team member and how to work hard.

Gazi goes to America
Gazi had a dream to continue postgraduate studies in America. With some money borrowed, in 1991 he left for Greece to secure a U.S. visa. It was a journey full of adventures. He arrived in Athens in a cargo truck. An old friend of his sister‟s helped him to get to the American Embassy. Thanks to his command of English and his persistent character, he managed to secure a visa. Given the turbulent situation in Albania during those years, and fear of losing his visa, he returned to Albania with the passport hidden in his pants. Back at home, another challenge was waiting for him: where to find the money for studies in America? Yet he dared. Meanwhile his mother was crying, while his father encouraged him promising, “I will sew costumes for you, day and night.” “Reflecting now after nearly two decades,” says Gazi “boosts me at the same time to laugh and to cry. In order to cover my educational expenses in America, my father would have had to sew costumes for over 130 years.” With $80 in his pocket and a long list of relatives‟ and friends‟ addresses, he flew to New York City. His first order of business was to call everyone who could help him. After four

Cham Albanians, or Chams are a sub-group of Albanians who originally resided in the coastal region of Epirus in northwestern Greece, an area known among Albanians as Chameria. The Chams have their own peculiar cultural identity, which is a mixture of Albanian and Greek influences as well as many specifically Cham elements. After the Second World War most C hams settled in Albania.

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months of efforts, he collected approximately $10,000 from his friends. One day he met the Dean of the School of International and Public Affairs and Columbia University. Touched by his story, the dean helped him to apply for scholarships. As a result, Gazi won a partial scholarship for the first year and a full scholarship for the second year. As he recalls: I applied to three universities and chose Columbia University, getting a master‟s degree in business and international affairs, then back to Albania. The person who conducted my college admissions interview was the dean of that university. He was such a good communicator – warm, impressive, gracious, thoughtful. He was just what I wanted to be. During 1992, Gazi attended Columbia University. On the day of graduation two years later, in the presence of his parents, he met the dean and asked him, “What can I do for you? How can I repay you for all that you have done for me?” Smiling, the dean, responded, “Doing for others what I did for you.” These words inspired Gazi throughout his life.

Gazi Returns: The Period 1997-2010
If you believe in something strongly enough you‟re willing to go ahead and keep trying. You have to believe in yourself. I learned to be a fighter during the difficult times of my childhood. You have to listen to your heart. If you like it, you should jump. It won‟t be a bed of roses. You must learn to get up quickly after you fail. It will happen so often. As the end of his studies approached in 1994, Gazi considered his future. Upon graduating, Gazi was thinking to embark on the career which he had envisioned since childhood. Meanwhile, an occasional meeting with the Office of the Prime Minister of Albania‟s temporarily changed his plans. He worked for two years in the Public Administration Department, but very soon he understood that it was not the right place for him. Much of Gazi‟s willingness to tackle challenges came from his father‟s inspiration. He encouraged his son to develop his potential, value hard work and sacrifice, and never let his circumstances control him.

Returning home, Gazi found his family modestly engaged in entrepreneurship. They had started a trade business of spare parts with Turkey. It proved very difficult times. “My mother and I very often slept in the truck, taking care for the merchandise. That was just the beginning. We were not content with some more money,” he recounts. Together with his sister Sadet and brother-in-law Arian Musa both of whom he deeply respects for their determination, business skills and integrity, they applied for dealership status with some well known companies. After about three years of attempts, only Opel responded positively to the continuous requests. He explains, “With credits from the Albanian-American Enterprise Fund, with an annual interest rate of 20 percent, we bought a piece of land in the outskirts of Tirana. Things were going very well. It looked that it was our time now.” Gazi and his family were risk-takers, but firm in their vision. On the other hand, Gazi was a big believer in letting other people shares some of the risk. Their choice of franchising as a business model allowed them rapid growth without having to turn to outside investors or other funding sources. Their recipe for success has been simple. Apply for a dealership; provide uniformed drivers, on-time service and up-front rates; and then mix it with a culture that is young, fun and completely focused on solid, healthy growth. As Gazi says:

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We saw a market need and filled it. From my father I learned many lessons about how to work with customers. I really think that entrepreneurs are born and not made. It either comes naturally or it feels completely foreign to you. To me, I have a knowing of certainty that this is what I was meant to do, and I love it. But a critical event during the time affected Gazi‟s family business occurred during the first half of 1997. The fall of pyramid schemes that led to the dissolution of many people‟s life savings led to the fall of government. Albanians were so irritated that were ready to destroy everything. Gazi recounts, “We defended our business with Kalashnikovs. We had some serious damages but looking around we saw that we could have lost everything, even our lives, but we managed to keep alive what matters most: Hope.” It was a turbulent year for Gazi and people were telling him that he should take a little time to breathe and reflect. According to him, it was one of the classic cases when people feel despondent and look for a way out, without trying to change it. But he saw it differently. As he recounts: After really tough times our business was growing rapidly. I couldn‟t see myself sitting aside and admiring the family business. I probably started thinking, “What‟s next?” But it takes a lot of time to plan the next phase of your life and I didn‟t have much time for reflection then. My wife Anila jokes that I could be playing a game of squash or taking care of our house. In 2009, 13 years after acquiring the Opel GM dealership owned by Noshi Company, it became one of the top two companies in car sales and services in Albania. In 2009, the dealership even furnished the Albanian Police with 300 hundred new cars. Though not the only Opel car dealership in Albania, Noshi Opel was the first in the country. According to Arian Musa President of Noshi Company, “The excellent reputation of German cars, improvement of Albanian infrastructure and rise of people‟s personal incomes were some of the motives of this undertaking. “The company‟s guiding principle is not the maximization of profit but the achievement of sufficient profit to cover the risks of our economic activity and thus to avoid loss,” explains Gazi. The complex, which makes up the core of company‟s investment, is located next to the national Tirana-Durres highway, seven kilometers from the capital, and covers an area of 6,600 square meters. The two new business opportunities came to Gazi‟s mind.

AVIS RENT A CAR Franchise.
In 2001, Gazi purchased the rights to open Avis Rent A Car Albania. Today, it is the top rental company in the country. Initially with two employees and one vehicle, Avis Albania now owns 224 cars and employs 44 staff. Avis Albania has also acquired the parking lots of the Rogner and Sheraton Hotels, two premier hotels in Tirana. Avis considers itself as a market leader and key logistics provider. It has now diversified its portfolio, expanding from only renting to leasing and chauffer drive – truly putting into practice the parent company slogan “We try harder.”

Albanian Center for Management Services (ACMS) is a management and human resources consulting firm. Acknowledged by the Tirana Court Decision Nr. 38 400 on 29 May 2007, ACMS is an Albanian-Israeli company. “We base our focus in Albania in the managerial

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services field, and our work is based in the belief that „The Road to Success is always Under Construction!‟” states Gazi. ACMS is a partnership with Genesis Group, one of the world‟s leading consulting groups aimed to provide the needs of various organizations in term of management and human resources. ACMS consultants are highly trained to provide assistance to managers and organizations in a vast range of issues using state-of-the-art techniques based on continuous field research and accumulative experience. Genesis Group, on the other side, is one of the more attractive consulting firms characterized as highly dynamic and highly skilled, constantly challenging systems and procedures, and using new and contemporary approaches to management needs, resulting in delivering excellent results.

Inside ACMS, as a separate division, operates Albania Experience a travel destination management company and event organizer. Albania Experiences focuses on organizing conferences and facilitating incoming business travel into the region. Gazi‟s wife Anila is a partner in Avis Albania and Albania Experience and part of the top management structure. But the efforts continue. They are not content with what they have achieved. They aspire for more…..      As a tour agency, Albania Experience targeted Japan as a market long before competitors and even the government caught on (going for the “blue oceans” as opposed to the “red oceans”) Until Albania Experience, professional conference organizing was unknown in Albania Albania Experience has expanded regionally to Kosova and is looking to expand further to Montenegro and Macedonia where such services don‟t exist Albania Experience successfully won a long-term agreement contract with the United Nations to provide conference services to the UN agencies Albania Experience strives to think ahead of the government and competitors (e.g. only now the government is putting emphasis on targeting the Japanese market whereas Albania Experience has been working for three years in this area already)

In 2007 Polis University was established. Gazi was a founding member and one of the shareowners of the university, which offers degrees in Architecture, Urban Planning and Art and Design. Polis University aims:  To educate students with the proper qualities of professional leadership;  To offer students knowledge according to the highest international standards, aiming at their integration in the professional life in Albania and abroad;  To qualify at masters level in these fields and to play the role of an international center for scientific research and studies related to academic activities pertaining to architecture and design;  To play a primary role for changing the image in these fields; and  To create the conditions for a professional interaction between Albanian and foreign experiences.

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As an academic institution dedicated to architecture and design, Polis University is new to Albania and the region, allowing students to express their thoughts in the fields of arts and design.   It strives to be an elite school with rigorous entry requirements (written exam followed by a second-round interview) In partnership with CoPlan (a non-profit organization that contributes to sustainable urban and regional development, by enabling good governance, developing civil society and empowering community participation), Polis is conducting a study on architecture Polis University is creating a forum whereby students can express their creativity through their work Polis University is launching a new book on Albanian professionals in architecture and will update once per year.

 

Over the last decade Gazi has been involved in a wide range of civic endeavors. He is engaged: in teaching at the University of Tirana, Master Program and IEDC in Bled, Slovenia; as a consulting member to the board of the bank Bankës Kombëtare Tregtare (BKT); and as a board member of international management development association CEEMAN, American University in Kosovo (AUK) and Business Advisory Council (BAC). In 2008, the Davos World Economic Forum Summit elected Gazi as a Young Global Leader.

Gazi: As a Person and Entrepreneur
Gazi views leadership as something that is unique to each company, group of employees and industry. He believes an entrepreneur has four key traits: courage, ability to make decisions quickly, opportunity-oriented and a great networker. As he says: I am not the kind of guy that believes in formulas. The make-up of entrepreneurs is different. If they have got the spirit, the smarts, the courage, respect for others and especially the system of values, chances are that they will be successful entrepreneurs. If they fall, they have to get up quickly and run fast. For instance, Gazi aims to harness creativity within ACMS through four central rules for leading: be an example, be present, be trustful and be open minded. Being an example means for Gazi, acting in a way that inspires others to act in a similar way. Being present suggests just that – being alert, engaged and speaking the same language. Trustful means for Gazi mutual trust and respect. Being open minded is one of the main factors of success for Gazi. This means that you will be part of the team. “One of the things I apply in my business is to give opportunities for the others,” says Gazi, “We are traveling in the same boat. That means that everybody must speak the same language. This means that leaders have to be open to the rejection of their own ideas.” In one article in SEE Business guides 2009/2010 (appendix 5), when asked to describe the typical Albanian entrepreneur, Gazi provided the following response: We‟re faced with a big challenge as there is no easy answer. There is no easy way to describe the development of entrepreneurship in a country, nor is it easy to characterize the transition process in Albania. We know that entrepreneurship is the driving force for this small country on the difficult road of economic development. By understanding how people with entrepreneurial ambitions navigate the uncertainty around them, trying to answer the question of who they are and who they want to be, we think we can explain why some go on to start new businesses and why others give up. Along the journey of

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building and living their dreams, they display many characteristics, of which the most important ones are:  Being very opportunity-oriented, looking for expanding into new businesses through a horizontal expansion of activities, very often losing the focus;  Orienting themselves in a sea of troubles and uncertainties even if odds of success are very slim;  Delivering superior performances even under stress;  Taking charge of their destiny;  Working hard under uncertainty;  Arriving at the future first;  Showing strength in resource allocation, especially when it comes to scrambling for money;  Avoiding a tendency amongst them to try to do everything by themselves. Gazi learned the fundamentals of his leadership style during his years of school in Columbia University. His experience there, in life and in the classroom, taught him to be strong and decisive while respecting the opinions of others. Gazi learned that there were two extremes in leadership: being too accommodating and being two authoritarian. An accommodating leader tries too hard to please everyone and consequently hesitates making decisions; conversely, an authoritarian leader makes decisions without respecting other opinions and is overly forceful in promoting his or her own views. Gazi‟s style falls between those two extremes: he gathers information and opinions from others in his organization and then makes a clear decision that everybody can follow. He explains: I try to use carrot and stick policy in a nice way. For example, everybody calls me by my nickname Gazi. When it was flooding in the premises of the Opel business, I was the first one that started to clean. The others followed me. In the same time I am very tough if somebody neglects the work or does not respect the organization rules. At the same time Gazi asks from his staff honesty. “Very often,” he remarks, “people tell the leader what they think the leader wants to hear.” This behavior is increasingly prevalent as the distance between the leader and followers increases. Gazi counters this by encouraging those around him to be honest and welcoming honest opinions. Gazi‟s leadership style has also been influenced by Charles Handy3 and Ichak Adizes‟ 4 philosophy about leadership style. Knowing them personally, he is an avid reader of their books and quotes. Asking for his failures, Gazi responds: We need to write a book or spend a whole wintry night by the fireplace to tell my failures: Initiatives that have failed, not the right time, not right partners or not ready for that project. An important part of Gazi‟s work is traveling and networking. He likes to be part of something bigger. On the other hand, having a balanced life is very important too. Traveling gives me breath. I try to combine work with family trips. It is true that the family has accepted my lifestyle, but I try to do the utmost to stay much more with them. My daughter misses me, but now she is applying to be part of the group [he adds laughing].

Charles Handy (born 1932) is an Irish author/philosopher specializing in organizational behavior and management.

Ichak Adizes is the founder of the Adizes Institute, Santa Barbara, California and creator of the proprietary methodology for managing change.

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Reflecitng on Gazi‟s engagement in teaching masters-level courses at the Faculty of Economy in Tirana University, the Director of the Masters program Dr. Vasilika Kume remembers: I must confess that when Gazi first came to see me, I had my doubts. After all, he was at that time very young [in the 1990‟s]. But since the first meeting, I began to realize that he was a young guy bursting with so much energy, obviously bright and articulate. What about Gazi as a person? When it comes to free time, you can find him in the park jogging. If you randomly meet Gazi in any festive evening, or at a gala dinner, he and Anila are the first dancing and give life to the event. When you joke with Gazi whether the kids know him, with a smile in his face he answers, “Intensity of time I pass with them is more important than longevity of time. Because of that they do a lot of trips and family activities together.” As a recent novelty, when the business trips are on weekends, he invites the family along. When telling this, you can see a comfort in Gazi‟s eyes, like a debt is being paid. Asking Anila about having Gazi as a business partner, she responds: We are two different but complementary characters. He is the enthusiastic heart and entrepreneur. He is the one who has the solution for every problem in the office and I am the one who takes care of the details. He is a kind of person that shows you the Big Picture. Joking, I tell him: Your mind is going faster than your mouth. In the office he is the one that inspires everybody. The staff feels very empowered when Gazi is in the office. He is like a ball of fire, transmits positive energy and is open minded. The staff calls him „Red Bull‟, i.e., the energy drink. A very important quality I find in Gazi, is his ability to listen carefully to the others. Asked about Gazi as a spouse and father, Anila claims: We try to organize family-business trips. It looks to me as an opportune solution to be in the same time a successful entrepreneur and a good family. But even when he travels alone, we are in his thoughts. It might seem strange but when he comes back from his trips, he never forgets to bring some special presents for me and our kids. I am always surprised that he knows very well what everyone likes. As well, whenever he comes back home, he never forgets to bring boxes of chocolates for the staff. The luckiest one is the one who picks him up at the airport. That person gets a special present. Smiling Anila continues: Being so close to family members, everyone finds it very easy to consult him for very big decisions. He finds time to hear them carefully and to guide them. His niece that now is studying in Nottingham says that her uncle is like a compass in her life.

Looking to the future
Alone in his hotel room, on a winter evening, Gazi reflects on years left behind. Gazi sees his life as an unfolding story. Meditating he passes in the mind some of his long term goals: The best way to achieve long term success is reaching a target, exceeding expectations, reinforcing success and creating a legacy. Money is not everything. A compelling vision is more important. I‟ve always been achievement-oriented. Except other goals, wealth is a goal too. It is more a way to do what I love and make sure the money follows. Actually I have

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enough financial resources to offer to my family a pleasant life. But it is not that. I am constantly excited by the question: what‟s next? Gazi has always one ear open for opportunities, many of which come through his relationships. From a strategic perspective, he is primarily interested in opportunities with a competitive advantage. He also likes to use some of his main capabilities which he feels include leading teams, communicating effectively, balancing strategy and execution. Gazi wants to exceed the country borders. He is looking beyond. Here are some ideas on Gazi‟s mind:  Entering in the energy sector in cooperation with a group of investors from Norway  An agricultural project in cooperation with a group of investors from Israel  Becoming the main logistics provider in Albania  Expanding activities in Kosovo As he paces in the hotel room, he thinks about the pros and cons of each opportunity. Which one would he choose? What made the most sense for his family? Which one had the highest probability for success?

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Exhibit 1: Net Worth of Gazi’s assets
Total Net worth of Gazi’s assets reaches Euro million 4.8 1. Opel: €1.7 million, growing business 2. Avis Albania: €1.1 million, business with an aggressive growth, 35% annually in the last three years 3. Polis University: €300,000, business of the future 4. Other Companies: €600,000, with very large growth potential, especially Albania Experience

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Appendix 1 ALBANIA a new Democracy
Albania declared its independence from the Ottoman Empire in 1912, but was conquered by Italy in 1939. Communist partisans took over the country in 1944. Albania allied itself first with the USSR (until 1960) and then with China (to 1978). In the early 1990s, Albania ended 46 years of xenophobic Communist rule and established a multiparty democracy. The transition has proven challenging as successive governments have tried to deal with high unemployment, widespread corruption, a dilapidated physical infrastructure, powerful organized crime networks and combative political opponents. Albania has made progress in its democratic development since first holding multiparty elections in 1991, but deficiencies remain. Since the end of dictatorship Albania has experienced many of the problems associated with developing countries. These include a largely poor population predominantly engaged in small-scale agricultural activities, but hampered by the terrain, lack of improvements in production methods and risks of drought or floods. The unemployment rate is also high. The official rate is estimated at 17 percent, though the true figure is likely to be significantly higher: 30 percent of the population is estimated to live below the recognized poverty line, mainly because they are unemployed or underemployed, working in very low-paid jobs or attempting to farm on small and unproductive plots. The economic development of Albania has also been hindered by the armed conflicts in nearby Kosovo, where many Albanians live, and in the Former Yugoslav Republic of Macedonia. There have been other particular issues and problems that have affected economic development in Albania. Energy shortages have impeded industrial and small-scale business development. Investment in the country was held back by a reputation for harboring organized crime, especially drug trafficking, and because financial institutions in the country were seen as unreliable. About 70 percent of Albanians lost their life savings in the 1990s in fraudulent pyramid investment schemes that collapsed. About 2,000 people lost their lives in the unrest that followed this collapse. Many people of working age are now seeking work abroad, mainly in Western Europe, rather than taking their chance with the insecure and limited possibilities in Albania. In the year 2000 Albania received about US$315 million in development aid, most of it from Europe. The Albanian economy has been partially sheltered from the global financial crisis and the economic downturn. Albania‟s economy grew 2.8 percent in 2009, according to International Monetary Fund (IMF) data. However, a reduction in remittances from Albanian workers abroad and in demand for its exports has constrained economic activity. During the global financial crisis, bank deposits shrank considerably and lower liquidity pushed commercial banks to tighten lending. While current bank deposits have reportedly surpassed pre-crisis levels and bank liquidity has improved, the demand for credit is still low. In December 2009, the growth rate of loans dropped to 10 percent from 35 percent in 2008. Despite these problems the Albanian economy is now one of the fastest growing in the world, with an annual growth rate of over seven percent. This is in part due to Albanians who are working in Western Europe and sending or taking money back into the country, but also to indigenous growth of industries, services and small enterprises. The continued growth of small and medium enterprises is considered to be particularly important for continued development in Albania and for the country to start to catch up with its neighbors.

GAZI: What’s next? Geography Area: 28,748 sq. km. Major cities: Capital--Tirana (600,000). Terrain: Situated in the southwestern region of the Balkan Peninsula, Albania is predominantly mountainous but flat along its coastline with the Adriatic Sea. Climate: Mild, temperate; cool, wet winters; dry, hot summers. People Population (2009 est.): 3,639,453. Population growth rate (2009 est.): 0.56%. Ethnic groups (2004 est., Government of Albania): Albanian 98.6%, Greeks 1.17%, others 0.23% (Vlachs, Roma, Serbs, Montenegrins, Macedonians, Balkan Egyptians and Bulgarians). Religions: Muslim (Sunni and Bektashi) 70%, Albanian Orthodox 20%, and Roman Catholic 10%. Official language: Albanian. Government Type: Parliamentary democracy. Constitution: Adopted by popular referendum November 28, 1998. GDP (purchasing power parity): $23.12 billion (2009 est.) country comparison to the world: 116 GDP - per capita (PPP): $6,400 (2009 ) country comparison to the world: 131 GDP - composition by sector: agriculture: 21.5% industry: 19.5% services: 59% Exports: $1.048 billion country comparison to the world: 148 $1.356 billion Exports - commodities: textiles and footwear; asphalt, metals and metallic ores, crude oil; vegetables, fruits, tobacco
“The Albanians,” a colorful mosaic on the facade of


the National Historical Museum in Tirana, depicts the evolution of Albanian history from ancient Illyrians to 20th-century partisans

Exports - partners: Italy 58.75%, Greece 9.69%, Austria 6.73%, China 5.68% (2009)

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Albania is trying to attract foreign direct investment (FDI) and promote domestic investment. Increasing FDI is a top priority for the Albanian Government, especially in light of the steady decrease of remittances. The Government of Albania has embarked on an ambitious program to improve the business climate by undertaking fiscal and legislative reforms and by improving infrastructure. The recent investment in energy generation through new transmission lines and the privatization of the electrical distribution arm will address the lack of reliable energy supply, which was a major concern for businesses following power shortages during 2005-2007. Heavy investments in the country‟s main road corridors have contributed to improved transportation conditions. Completion of the 106 miles (170 km) of highway linking Durres with Kosovo will provide a major transportation corridor connecting markets in the central Balkans through Kosovo to the port of Durres. Similar large-scale infrastructure investments are needed to improve Albania‟s limited railway system and to expand the capacity of its sea ports and airports. In recent years, the Albanian economy has improved; reforms in infrastructure development, tax collection, property law, and business administration are progressing. During 2004-2008, Albania experienced an average 6 percent annual GDP growth. Fiscal and monetary discipline has kept inflation relatively low, averaging roughly 2.9 percent per year during 2006-2008 and dropping to 2.3 percent in 2009. However, preliminary signs indicate that inflation will increase in 2010. Albania continues to be an import-oriented economy and, despite reforms, its export base remains small, narrow and undiversified. In 2009, imports amounted to Lek 431.1 billion (US$4.55 billion--down 2 percent from 2008) and exports were Lek 103.2 billion (US$1.09 billion--down 8 percent from 2008), reflecting the economic crisis. The trade deficit continues to be high and, according to official data, is estimated to have reached 28.6 percent of the GDP in 2009. Albania submitted its application for EU membership in April 2009. Fifteen years after the demise of communism Albania is finally on a solid road to economic development. Although a small country, Albania has huge potential for development, not fully recognized until now. Albania‟s competitive assets include fertile agricultural lands, unexplored mineral reserves, water resources and a young, educated and very active labor force. Tourism is widely regarded to harbor significant growth potential in coming years. Albania has a favorable climate, magnificent mountains and forests, abundant natural resources, and splendid long-stretching coastal areas unique in Mediterranean yet pristine and virgin. There is potential for hydropower, thermal, wind and solar energy. Albania is a very sunny country with 300 days of sunshine per year.

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Appendix 2:
GAZMEND HAXHIA Tel: 355 68 20 232 80 Rruga : Jeronim De Rada No.61 Fax: 355 42 2 35 024 Tirana, Albania ________________________________________________________________________________ _ SUMMARY OF QUALIFICATIONS

As Licensee Proprietor and President of Avis Rent A Car Albania and as Managing Director of the OPEL General Motors Albanian Representation has worked to effect change and produce businesses reflecting the intersection of entrepreneurship, creativity, fairness and sound management. Has served as aide to the then Albanian Prime Minister Meksi on issues of Public Administration in general and wage and remuneration policy in particular. Currently acting as external advisor to the Speaker of the Albanian Parliament Mrs. Jozefina Topalli, on special issues. As consultant to USAID, World Bank, Albanian Government, Institute of Training of Public Administration has worked to produce reports on the state of the matters in the Albanian Government, to write modules and to get involved into “train the trainers” sessions and finally to offer advice on how to bring about the required change. As a Lecturer, prepared and still offers for the 6th consecutive year courses in “Ethics and corruption,” “Leadership” and a course in “Marketing Services” to the American graduate MBA/MPA program in Tirana. As a speaker has offered management courses in Entrepreneurship and Creativity to Albanian businesses.

Harvard Business School, Followed a short-term course for lecturers of Management and Entrepreneurship on the participant-centered learning and the case method, Boston, USA July 2006 INSEAD, Fontainbleu, France Attended an intensive course for „Finance for Executives‟ November 2004 Columbia University in New York City, School of International and Public Affairs M.I.A. Degree in International Affairs. Dean‟s fellow in second year (full tuition) May 1994 (work in international markets and economics) Tirana University. Faculty of Foreign Languages. English Language Department. Bachelor‟s Degree received with Highest Honors (B.A.) July 1990

            DAVOS World Economic Forum: Elected Young Global Leader 2008 March 2008 IEDC, Bled BUSINESS SCHOOL, Slovenia 2007-present, Guest Lecturer in Entrepreneurship and Leadership Parliament of the Republic of Albania 2006-present, External Adviser to the Speaker of the Parliament ACMS – Albanian Center for Management Services, Co Founder & Co-Chairman May 2007 POLIS UNIVERSITY in Architecture and Urban Planning Albania Experience Travel Company 2006-present, Tirana, Albania Avis Rent A Car Albania 2001-present, Tirana, Albania, Licensee Proprietor and President Opel Noshi 1996-present, Tirana, Albania, Managing Director and one of the three partners of the Company In Your Pocket Group 2001-present, Tirana Albania, Licensee proprietor of the guidebook of Tirana, Skopje, Pristine and Podgorica, part of the worldwide “In Your Pocket” chain. Published twice a year. Albania Business Guide, Editor and Publisher of the first and only business publication on Albania. Kosova Publication is out from September 2011. AGRI-ALB 2008 –present, An Israeli Albanian Company with a portfolio of businesses in agriculture as well as real estate. Tirana University and Nebraska University MBA/MPA Program 2002/03-present, Lecturer in Leadership, Marketing services, The Responsible Administrator- a course in ethics.

GAZI: What’s next?
 


Prime Minister’s Office, Department of Public Administration 1994-1996, Aide to the Prime Minister Wall Street, Merrill Lynch 1993-1994, Intern in the currency trading Department and Middle Markets derivatives

ASSOCIATIONS & BOARDS  Stability Pact, Business Advisory Council, Member since September 2006  Advisory Board Member, Commercial Bank of Albania, awarded No.1 Bank from “The Banker” magazine for 2006  Polis University Board Member since 2006  Board of Trustees Member of the American University in Kosova 2008  Board Member of CEEMAN-Central East European Management Association Since January 2009 LANGUAGES  Fluent in English; functional in German, Italian, Turkish.  Family Status:  Married to Anila, 2 children: Sibora and Eric.

GAZI: What’s next?


Appendix 3:
Gazi’s career history:
Dates 2008-present Company AGRI-ALB Title Co-founder Comments An Israeli Albanian Company with a portfolio of businesses in agriculture as well as real estate

March 2008 2007-present

DAVOS World Economic Forum IEDC, Bled BUSINESS SCHOOL, Slovenia Parliament of the Republic of Albania

Elected Young Global Leader Guest Lecturer in Entrepreneurship and Leadership External Adviser to the Speaker of the Parliament ACMS -The market leader in offering trainings and executive search services to the Albanian business community Serving on the five-member Board and one of the five founders and shareowners of the University The number one rated Incentive and Event Organizer in Albania, & Travel Company specialized in incoming and outgoing tours, ticketing, bookings and car rental reservation


May 2007

ACMS – Albanian Co-founder & Co-chairman Center for Management Services Polis University in Architecture and Urban Planning Co-founder



Albania Experience Owner Travel Company


Lecturer in Leadership Tirana University and Nebraska Univer- Marketing services, The Responsible Admisity MBA/MPA nistrator ethics Program In Your Pocket Group, Tirana Albania Avis Rent A Car Albania Tirana Opel Noshi Tirana, Albania Licensee Proprietor of the guidebook of Tirana, Skopje, Pristine and Podgorica Licensee Proprietor and President Part of the worldwide “In Your Pocket” chain. Published twice yearly Presiding over the largest rent a car Company in Albania Company‟s Board Director

2001- present



Managing Director and Sits on the board of the familyone of the three partners owned Company. Performs the main responsibilities of overall strategy of the Company, marketing and financial management Aide to the Prime Minister Advised the Prime Minister on policies and matters of remuneration and salaries

1994 -1996

Prime Minister’s Office, Department of Public Administration


Wall Street, Merrill Intern in the Currency Trading Department Lynch

GAZI: What’s next?


Appendix 4:
Dear Colleagues, dear friends, Another year went by so quickly and here we stand to celebrate the end of the year together and to wish you and your families a new beautiful start for the year to come. The very fact that we sit together twice stronger in terms of staff without losing one of you means to me a lot: that we are a family with a strong bill of health. In financial terms we had a growth more than we set out at the beginning of last year and nothing would have been achieved without your continuous support. I am very proud to be working with you and will do my best to help you grow because you deserve it. We share the same values of determination, integrity and fairness and want to see each other do well. As stakeholders in this company I encourage you to make your voices heard in our decision making, because in a way this is your company. I literally now encourage you to make your voices heard by singing all together our song which is so close to our hearts, which we call “united we stand” which shows the values we stand for but which is a way of thanking you all for what you are doing for yourselves and your company.” We always referred to you as “associates” rather than employees – because we want to make you feel like you‟re truly a part of the family. We pledge that we will continue to support workers like you, especially in difficult times of world crises. Now, more than ever it is need for collective efforts to share commitments, responsibilities and sacrifices. It is the moment to find social cohesion for common good.

GAZI: What’s next?


Appendix 5:
Part of the article for entrepreneurship, written for SEE Business Guide

A portrait gallery of Albanian entrepreneurs: riding on the waves of change
Gazmend Haxhia When asked to describe the typical Albanian entrepreneur, we‟re faced with a big challenge as there is no easy answer. There is no easy way to describe the development of entrepreneurship in a country, nor is it easy to characterize the transition process in Albania. We know that entrepreneurship is the driving force for this small country on the difficult road of economic development. By understanding how people with entrepreneurial ambitions navigate the uncertainty around them, trying to answer the question of who they are and who they want to be, we think we can explain why some go on to start new businesses and why others give up. Entrepreneurship in tough times The tough times of the long communist years in Albania made people creative, resourceful and entrepreneurial in order to survive. These times, we believe, planted the seeds for the entrepreneurship of the early post-1990 years. The main characteristics of entrepreneurs are that they are natural hopeful risk-takers with a strong hint of adventure and new ventures in their DNA, at times unable or even unwilling to comprehend the downside of their actions. They know that failure may be just around the corner and that the bigger the price, the further there is to fall. They know the road to success is always under construction, just as they also know that the entrepreneurial journey is one of discovery, the focus of which is not necessarily to seek new landscapes but also to alter the perceptions and the view of what is known. Making money, and a mark Albanian entrepreneurs clearly understand that entering the entrepreneurship game is about making money; but it is also about making a mark. The new generation is endlessly better educated and informed than their predecessors and shamelessly entrepreneurial. For many, a dull corporate existence is not an option. They want more than just a cheque at the end of the month… many want meaning and purpose as well. Many of them want to change the world, to follow their star, taking the future in their own hands. For a growing numbers of young people, creating a business has become a calling, a vocation. It is a mission in itself. They think they are offered the opportunity not just to make money but to make history in their own way in their own clusters and communities. Through the school of hard knocks, they have learned that freedom, the lifeblood of entrepreneurs, has a price to be paid, but it means increased options as well. Along the journey of building and living their dreams, they display many characteristics, of which the most important ones are:    Being very opportunity-oriented, looking for expanding into new businesses through a horizontal expansion of activities, very often losing the focus; Orienting themselves in a sea of troubles and uncertainties even if odds of success are very slim; Delivering superior performances even under stress;

GAZI: What’s next?     


Taking charge of their destiny; Working hard under uncertainty; Arriving at the future first; Showing weakness in resource allocation, especially when it comes to scrambling for money; Displaying a tendency amongst them to try to do everything by themselves.

Skills and opportunities. At the same time they display a great need for control. Control is a major theme in the life and personality of many Albanian entrepreneurs. They often display a sense of distrust as they often live in fear of being victimized, and they want to be ready should disaster strike. They have a desire for applause when success is knocking on their door. In their portfolio of skills, they have a good chunk of survival instinct, and survival itself as a word is very critical for them. They tend to throw their life and family and business partners into turmoil by getting into another survival battle; and then comes the relief similar to that after dodging a bullet. This gives them the energy to start afresh. Regardless of the tides of times, the good news for entrepreneurs, whether Albanian or not, is that opportunities still abound in many areas of the country. Reality shows that there are multiple assets and liabilities in the economic landscape of Albania still waiting to be utilized. Albania is an untouched beach waiting for people to write their own name on it, leaving footprints on the sands of time. Phases The nature of entrepreneurial activity in Albania has gone through some very distinctive phases, also reflected elsewhere in the region. Phase 1: 1990-1995. The first entrepreneurs operated arbitrage imbalances in existing resources, in goods and services. They found opportunities just across the border, and brought in cheap goods from Turkey, Greece, Macedonia, Bulgaria, Russia and other countries which provided some pretty good money-making possibilities, filling the gaps in consumer‟s needs. This was a way for people in search of their economic and survival „luck‟ to see where they could stick and fit in while making a living. Sources of funds at this stage were limited, with cheap trade credits only available to the selected few, and very hard to come by. The alternative of financing through „FFF‟ – friends, family and fools – is convenient, but turns the family New Year‟s dinner party into a shareholder‟s meeting. The entrepreneurs at this stage Tirana's colourful facades relied primarily on trust and friendship to counter information asymmetries. Tapping on the movement and transport of commodities such as aluminium, copper, bitumen and scrap metal gave some individuals the ability to make huge, unheard of amounts of cash quickly. Some even made huge gains selling those commodities on the world markets. Phase 2: 1996-2001. Life went on, and so did the development of entrepreneurial business activity. The next logical big step was the importing of relatively high-quality durable consumer goods. The consumer market was growing, and people paid more attention to the choices they were making. This went hand-in-hand with an improvement in the standard of living. Joint ventures came into being, and entrepreneurs realized that this was not the final station in their growth spiral. There was an imbalance between the resources needed to capitalize on new opportunities, and the resources available. The gap included not just cash, but also management skills, distribution channels, networks and technology. In most cases, Albanian entrepreneurs were managing a portfolio of activities at any one time. Along with the management responsibilities they accumulated during the years of horizontal expansion, they acquired what they saw as a portfolio of businesses with a varying risk profile. A special characteristic of the Albanian entrepreneurial model during this phase was the cutting out of the middlemen who beforehand would cream off large portions of potential profits.

GAZI: What’s next?


Phase 3: 2003 to present. The evolution of entrepreneurial business continued with increasing numbers of home-grown local businesses, producing products and services locally for home consumption, and some for export to world markets. At this stage, the Albanian entrepreneurs utilized a more solid resource map, as family and friends were no longer the main money source for their ventures. Asset loans, trade credits and venture capital money were now used as instruments of injecting money, keeping their business activities afloat and helping grow their undertakings. At this stage, we notice more specialization and more focus on business activities. Entrepreneurs, known also as champions of change, depended on a strong set of competencies and business networks as the surest way to succeed. They showed maturity in protecting their achievements and were conscious that they needed to pass through numerous challenges on the way to future successes. We note with satisfaction that in the phase that represents the most seasoned and mature entrepreneur there is a qualitative change in the nature of businesses operated, a change from material inventory to knowledge-led businesses, though not yet in volume desired. Challenges Entrepreneurs in Albania as elsewhere face many different challenges. They also display consistent operating weaknesses. The most profound involves the lack of marketing and sales management skills. Entrepreneurs encounter difficulties with employees and management where management is not willing to take on real responsibilities for their business activities. Many, still, are in search of shortterm gains, and do not focus on finding the right business partners, meaning they are apt to deal with partners who are not totally trusting and trustworthy. Today, entrepreneurs want to be closer to the action. They want to call the shots by flexing their entrepreneurial muscles. They want to be entrepreneurial and want to remain as such. They want to challenge the business establishment while they see new wide horizons in maximizing future options, meeting new people and having new and different experiences. To be successful in these challenging but turbulent times, Albanian entrepreneurs need to focus their business activities while diversifying their carefully selected portfolio. As they have built up their ventures to the current status, they should be prepared to build barriers for competitors coming into the business, as success attracts success. They should be on the lookout for future challenges and erect higher bars which are difficult to overcome by competitors. Growing with the customer is a must nowadays, as the business, customers, distributors and markets become more sophisticated. Underestimating the customer will negatively affect the chances of longterm success, and will eventually kill the business itself. Investment in people as the main asset in business should be seriously considered and incorporated in the larger picture. Continuously developing the skills and abilities of the staff should be a matter of high priority. If entrepreneurs continue to measure themselves against their local competition, they will hurt their long-term success. The reference should be the broad international standard. By doing that, chances are that they will be unbeatable, readying themselves for greener pastures. The entrepreneur Going back to our initial challenge of describing the Albanian entrepreneur, it is clear that there is no common answer. Entrepreneurship exists in a realm where each person writes his or her job description, and defines it personally. It consists of individual ideas, skill sets and success aspirations. And as Albanians understand better what entrepreneurship entails, the description they develop will become more detailed, and they will become more committed to a new conception of themselves as Albanian entrepreneurs. SEE Business guides 2009/2010

GAZI: What’s next?


Appendix 6:

Our vision
We believe that Albania, as a country striving for worldwide recognition, should put a strong emphasis on strengthening its growing economy. Strong economy is the key for future acceptance to modern markets. Well managed organizations whether industrial, high tech, service oriented, governmental, military or educational are a necessary step toward strong and considerable economy. Educating the recent, soon to become and the next generation of managers by supplying them with the best possible training for concepts, techniques and skills of management is the best way to ensure the success of those organizations, therefore the success of the state’s economy.

Our mission
Establish a center aimed to serve the cause of improved and advanced management among companies and organizations operating in Albania. Becoming a leading center for knowledge and education regarding the various fields and areas concerning management. Becoming a source of information, through research, in the field of management for any need of any organization operating within the Albanian economy. Becoming a source of consulting regarding excellence in management and leadership through the most updated and advanced knowledge and techniques existing.

GAZI: What’s next?


Appendix 7:
Photos form AMCS trainings

ACMS presentation ceremony, May 2007



© ACMS - 2007

GAZI: What’s next?


Appendix 8:
ACMS Training Services
MANAGEMENT Every business has its own life cycle. Every stage of its growth consists and requires different level of organizational and managerial maturity. Every level is defined by the abilities and skills needed for handling this stage Developing personal leadership Effective decision making Effective time management Creative managerial thinking Advanced management skills Team building & leading Assertive managerial behavior Managerial entrepreneurship Feedback skills HR strategic planning Handling managerial conflicts Managerial human relations Coping with stress Positive organizational climate Globalization and management COMMUNICATION The way managers communicate their ideas, messages and interests with the market, outside or within organization, defines their leadership. The way goals are being set defines results and influences either the empowerment of people or their resistant. The art of communication is the art of progress and market advantage. The art of public presentation Influential skills Standing in front of a camera Effective interviewing Speaking with your employees Self awareness, self esteem Business communication Business manners Bridging over conflicts PR yourself SALES Every business depends on sales for its success. The center’s experts will train sales force through different sales styles in relation to their company's strategy. As a result of our training, salespersons will acquire new and advanced ways to approach any customer, develop long and lasting relationship and close deals. The art of sales How to close a deal How to negotiate effectively Developing a sales attitude Tracing costumers' sales needs CUSTOMER CARE & SERVICE Modern consumerism consists with excellent customer service beside an excellent product, either tangible or intangible. A wellperformed costumers' service makes customers satisfied and brings them back. This tendency gives the organization a significant market advantage. Service Service Service Service Service orientation with a smile as sales increaser in banking in governmental authorities

GAZI: What’s next?


Appendix 9:
ACMS Training Services
Management Auditing
Genesis Group is a world renowned firm specializing in auditing managers and top professionals. It employs more the 400 top specialists, executing high performance audits, using state of the art techniques in order of providing the best results for our customers. Our specialists are carefully selected, trained psychologists, experienced in auditing, using our unique auditing methods, and providing high results in matching the right person to the right position.

Managers training and development
Genesis Group holds the knowledge and experience in ways to approach managers and promote, with them, a process leading toward excellence and higher usage of their talents' capacity. We coach and train them. We empower them. We lead them to the point where they start using the approaches, knowledge and skills we assimilated to them, to perform and execute their position in the best manner possible. We monitor their progress and we are there to provide any additional need requested.

Management and organizational consulting
Genesis Group is experienced in applying advanced techniques aimed to analyze processes and trends occurring within organizations, defining the harmful ones and suggesting the best way to cope with it. We consult and escort re-organization of frames and units. We consult constructing company's future goals and how to promote them. We endlessly challenge managers with our recommendations for better executing and performing the company's goals.

Leading Models for human and organizational understanding
Genesis Group in its strive for excellence in providing high performance services to its customers, developed, through years of research, two comprehensive models aimed to acquire better perception and understanding on human, managerial and organizational behavior. The SILVER ACE - A comprehensive model analyzing human behaviors through mapping personality components on eight behavioral vectors providing a thorough understanding of each component and the interrelation with the others. The usage of the SILVER ACE model enables auditing, analyzing and a deep understanding of people in terms of strengths and weaknesses, potential, ambitions and the way they think, act and behave. OREN - A managerial comprehensive model analyzing the organization's energies under the valid assumption claiming that the way to manage people goes through managing their energies and the organization's energies constructing their perceived environment.

GAZI: What’s next?


Indoor and outdoor training
Genesis Group is equipped and has the expertise to provide various trainings and workshops while using state of the art techniques, highly skilled trainers and contemporary knowledge in four main fields: Management, Communication, Sales and Customer Service. MANAGEMENT Every business has its own life cycle. Every stage of its growth consists and requires different stage of organizational and managerial maturity. Genesis Group assists organizations in managing their investments in their human capital while promoting processes focusing on the needs of the business, its potential to grow and the potential of the people employed. COMMUNICATION Leadership can be defined by the way ideas, messages and interests are communicated to the market, outside or within the organization. The way goals are set defines results, influences either the empowerment of people or their resistant. Speaking in front of any audience can either make the audience listen and evoke trust and confidence toward the speaker or create physical or emotional abandonment. Great ideas would not be related if poorly communicated, while modest ideas be followed cause they are better communicated. The art of communication is the art of progress and market advantage. SALES Every business is sales dependent for its success. Genesis Group will train sales force through different sales styles in relation to their company's strategy. Our result-oriented trainings cause salespersons to acquire new and advanced techniques to approach any customer, develop long and lasting relationship and close deals. Our trainings are based on the best business practices and is adapted to the Albanian culture. CUSTOMER SERVICE Modern consumerism consists with excellent customer service beside an excellent product, either tangible or intangible one. Well-performing customers' service makes customers satisfied and brings them back. This tendency gives the organization a significant market advantage. Managing a service-based organization requires a vast range of skills either technical or personality-based. The model for excellence in customer service, developed by the Genesis Group provides the ability to suggest improved and advanced ways to execute excellent service within firms and organizations.

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...FUTURE Chapter 16—SUPPLY CHAIN PROCESS INTEGRATION AND A LOOK TOWARDS THE FUTURE For those for whom integration is not happening, the future is bleak and getting darker.[i] There is a lot of value that is “trapped” between the processes trading partners use to transact business, and when companies work together, they can unlock that value and share its benefits.[ii] LEARNING OBJECTIVES After completing this chapter, you should be able to: • Discuss and compare internal and external process integration. • Discuss the requirements for achieving process integration. • Describe the barriers to internal and external process integration, and what can be done to overcome them. • Understand the importance of performance measurements in achieving internal and external process integration. • Understand why it is important to align supply chain strategies with internal process strategies. • List and describe the eight key supply chain processes, and how trading partners integrate these processes. • Discuss a number of the latest trends in the areas of process management and process integration. CHAPTER OUTLINE Introduction Achieving Internal Process Integration Extending Integration to Supply Chain Trading Partners A Look at Trends and Developments in Integration and Process Management PROCESS MANAGEMENT IN ACTION—An Interview with Zack Noshirwani, Vice President of Integrated Supply Chain for Raytheon ......

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Supply Chain Management

...Wal-Mart Supply Chain Mathew Chitwood Southwest Florida College Marketing Strategy Professor Blakely November 20, 2013 Wal-Mart Many would argue the strategic advantage Wal-Mart holds in the retail industry is the ability to offer lower prices than their competitor’s, which translates into greater savings for the consumer; however, the key to offering lower prices stems directly from Wal-Mart’s distribution and inventory system. Through the application of advanced technological practices to the establishment of distribution centers throughout the country, Wal-Mart has been able to out-maneuver competitors by ensuring that store shelves are rapidly re-stocked with items that consumers wish to purchase. How exactly does Wal-Mart’s distribution system correlate to lower prices for their consumers one may ask; the answer is really quite simple. As stated by Ferrell & Hartline, “every time a different intermediary handles a product, the cost to the final customer increases” (Ferrell & Hartline, 2011, p. 282). With this in mind, it is rather evident as to why the establishment of distribution centers can be viewed as a key element to Wal-Mart’s competitive advantage. Wal-Mart currently operates 158 distribution centers which is one of the largest in the world. Much like the airline industry, these distribution centers are known as “hubs of activity” (Wal-Mart Corp, 2013) for the business. Combined with operating “a fleet of 6,500 tractors, 55,000 trailers,......

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Supply Chain Management

...Supply Chain Management Executive Decision The purpose of this business report is to guide the investors on the decisions they should make for designing and organizing their supply chain for their line of power hand tools, including electric drills, saws and sanders. This report will explore the option of using vertical integration as the supply chain strategy and they approach the investors should take towards operations management. Metrics, issues, organizational structure, and cost effectiveness will also be presented in this business report. The investor will have within this report also, the results that provide sustainable dominant competitive advantage to have the right amount of the right product in the right place at the right time. Supply Chain Management Supply Chain Strategy In any manufacturing business the first this to consider is the supply chain strategy that will effectively fit and grow with your business. In researching the right supply chain strategy for your business which is to manufacture and market a line of power hand tools, including electric drills, saws and sanders, the supply chain to be used is vertical integration. Vertical integration is “developing the ability to produce goods or services previously purchased or actually buy a supplier or distributor” (Heizer, Render, 426). Because you the investor choose to own and operate your own production facility and are also considering ownership of any other component of the......

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Supply Chain Management

...SIBM,Bengaluru | Supply Chain Management | Assignment :Set 1 | | Karthik Periyasamy P 14020841020 Question: 1 You are the manager of Strategic Sourcing at Toyota Motor Corp and have just been called by the VP of global sourcing to whom you report. There has been a problem with the least 8 vehicles exhibiting sticking accelerator pedals and your boss is upset. Strong Evidence points to a problem with CTS, an electronic supplier, which has been recognized for high quality standards by the Toyota. Answers a) Identify the exact sequence of steps - a project plan - on how to handle this problem, from dealing with customers to identifying causes. Explain what should be done and why? ------------------------------------------------- The first step to be followed is to check with the different dealers across various cities to know if there are any more such cases. Those dealers should be asked to contact the customers to know if they are facing any such similar issues related to the accelerator pedals. If so, those vehicles need to be recalled for fixing the issue. This is the most important step as customer relationship is the key for any firm’s success. If the defective number of cars is too high, a special team can be setup to respond to the concerns of the customers. ------------------------------------------------- The next step would be to setup a discussion with the supplier CTS, to understand the severity of the problem. This discussion also......

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Supply Chain Management

...Introduction Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of trading partners (Power, 2005). ‘Modern businesses are dynamic in nature and to stay competitive (organizations) need to optimize their business processes by understanding and reacting to the rapid changes in their environment' (Banavar, Black, Caceres, Ebling, et al, 2005). Dialysis, a specialized field in the healthcare industry, is a major business entity with penchant for a rapidly changing environment. Dialysis is a medical treatment for individuals with limited or no kidney function and without this specialized therapy these unfortunate individuals would not survive. In dialysis, supply chain management is crucial from all aspects in providing comprehensive and adequate patient care. The constant changing needs of patients and the......

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Supply Chain Management

...1. What are the 4 “R’s” in supply chain management? Describe. The 4 “R’s” in supply chain management is Responsiveness, Reliability, Resilience and Relationships. Responsiveness: This is the need for your company to be flexible and nimble. To be able to change as necessary to met customer needs. This implies the company is listening to the customers. Reliability: This is the ability to focus on the reliability of the logistics process. The company has to be sure they are able to reduce inefficiencies wherever possible to increase reliability. Companies are able to use tools such as six sigma to help control processes. Resilience: The Company must have the ability to be resilient to unexpected happenings. The resilient supply chain is able to cope with uncertainties in the business environment. Relationships: The buyer and supplier relationship must be based upon partnership. Both parties should be looking for ways to partner and ensure a win for both parties. 2. List and describe the 4 most pressing issues in supply chain management currently. The most pressing challenges in supply chain management currently are the new rules of competition, globalization of industry, downward pressure on price and customers taking control. - New rules of competition: Organizations are competing more on their core processes rather than spending on ads and pushing their brands. By being more cost efficient in their processes than their competitors, the organization will...

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