Culture and Culturally Competent Counselors Essay Example for Free

Culture and Culturally Competent Counselors Essay Being Culturally Competent Letitia Batton Walden University Being Culturally Competent Counselors should have a sense of compassion and respect for people who are culturally different. As a social worker, it is easy to make diagnosis based on verbal and non-verbal presentation of our clients. Hays (2008) stated there are many factors to assess which include race, class, family structure, culture, relationships, religion, and generational/cultural influences. Based on the case study of Mrs. Hudson her externalizing behaviors may stem from an underlying anxiety disorder. It seems that her attacks are not medical in nature that is why she was referred by her primary doctor. She just recently started having these attacks and they happen out of the home and when she has to interact with others. Her assessment reveals that she is presently considered middle class, attended church prior to attacks, family oriented, and educated. Some potential concerns could be her daughter’s illness and past issues with her father that never got closure. Haitian culture relies on spiritual healing more so than Americanized tradition and this may be a big step for Mrs. Hudson (Pierce Elisme, 2001). Counselors must be trained and competent when implementing diagnosis with culturally diverse clients. (Sue, 2008). DSM-IV provides counselors a tool to evaluate client’s cultural context (Hays, 2008). This process helps counselor’s assess their client’s background, cultural explanation of their issues, client’s environment, relationships, and overall cultural assessment to diagnosis and treatment (APA, 2002). Researchers have argued that the DSM-IV does not accurately represent all minorities (APA, 2002). It is important that counselors understand the family structure in order to provide the most accurate assessment information possible. Unfortunately, counselors are not immune to stereotypes. Beliefs in stereotypes, whether conscious or not, may lead to incorrect diagnosis and misunderstandings between the clinician and the client (Hays, 2008). These beliefs may stem from television or news reports. If believed, they may cause counselor to incorrectly interpret the diagnosis. When this happens the client may become offended and end counseling. Counselors should have knowledge of their own general views, as well as specific knowledge about diverse client’s issues (Sue, 2008). Diversity in family structure should also be taken into consideration when formulating goals and assessing treatment success or failure (APA, 2002). Counselors also attempt to understand the cultural values of each client to gain feelings of trust. Some issues with culturally competent assessments is that it is not race specific and whether existing instruments measure the correct attributes, based on different cultures (Hays, 2008). Diversity plays a role in many aspects of assessment, diagnosis, and treatment. Clarity in these three characteristics may allow counselors to better assist families from diverse backgrounds and that will bring about better treatment outcomes (APA, 2002). Counselors should have an attitude of cultural humility in knowing their limits of knowledge and skills in rendering diagnosis with certainty than reinforcing stereotypes and generalizations (Sue, 2008). While guidelines exist for conducting a culturally competent assessment, few of these guidelines provide the link between the information gathered, the initial decision making, and the development of the treatment plan (APA, 2008).

The freedom of cyberspace

The freedom of cyberspace Discuss how the Internet, in its guise as ‘cyberspace’, has allowed its users to operate in a world that is seen by some people as being a new world of freedom and creative opportunities while others see it as a dumping ground for businesses and smut. IntroductionIn this essay I shall discuss how the Internet, in its guise as ‘cyberspace’, has allowed its users to operate in a world that is seen by some people as being a new world of freedom and creative opportunities while others see it as a dumping ground for businesses and smut. I shall introduce what cyberspace is and how it came to be, examine the main arguments for it being labelled as a creative tool that introduces freedom to the world, investigate the criticisms of those who champion cyberspace and analyse how both sets of arguments relate to ideas about technology, society and culture.   In my conclusion I hope to be able to offer an insight into whether cyberspace has developed into a powerful tool for creative freedom, or into a weapon in the arsenal of big business. CyberspaceThe term ‘cyberspace’ was first used by science-fiction writer William Gibson in his 1984 novel Neuromancer.   He described it is a futuristic computer network that people use by plugging their minds into it.   This term now refers to the Internet and lends a romantic image to a world where an almost limitless pool of information can be plucked from a network of computers and computer users around the world.   The Internet was originally developed for the US military but was recognised as the perfect system to transfer and share information for academic research.   The World Wide Web was invented by Tim Berners-Lee in 1989, with the first working system deployed in 1990, while he was working at CERN (the European Organization for Nuclear Research).   The introduction of the World Wide Web allowed the public to access huge amounts of data and it has now become an accepted way to receive and send information.   The World Wide Web is just one service that the Internet provides; a layman’s analogy is of the Internet being the transportation of the World Wide Web’s content.   With cyberspace being made up of more than 100 million computers in more than 100 countries it is almost impossible to fathom how much information there is available to the user.   New Frontier   Cyberspace has been able to offer its users and its contributors a vast arena to ‘play’ with.   The rules and regulations of structured information providers such as the press do not apply to most of the content available online.   This affords the Internet a creative freedom that has never before been seen.   In an article in 2000, journalist Mary Flanagan stated that: â€Å"Technology allows us an alternate space within which we can invent unique methods of telling stories, forming identities, and remembering.†   This alternate space that Flanagan refers to is typifies the romantic view of cyberspace; it is a world in which a person can break free from the shackles of the everyday world and become someone different where they are able to enjoy the freedom of creating a new identity, a new work of art or even a conspiracy theory that they would not have imagined constructing in the ‘real world’.   Sherry Turkle describes th is as â€Å"People who live parallel lives on the screen are nevertheless bound by the desires, pain and mortality of their physical selves.   Virtual communities offer a dramatic new context in which to think about human identity in the age of the Internet†Ã‚   In her introduction to the reader author Rosanne Alluquere Stone reveals that â€Å"†¦engaging in social intercourse by means of communication technologies has given me increasing opportunities to watch others try on their own alternative personae†¦ there are some out at the margins who have always lived comfortably with the idea of floating identities, and inward from the margins there are a few who are beginning, just a bit, to question.†Ã‚   This questioning hints at the notion that under a veil of secrecy the truth can be surfaced without retribution.   Perhaps the most famous advocate of this was Oscar Wilde when he wrote: â€Å"Man is least himself when he talks in his own person. Give him a mask, and he will tell you the truth.† In this new frontier the Internet user can find information on any subject they wish to.   This information is not static like the printed words of a book found in a library, but it is â€Å"organic, open, ubiquitous and creative.†Ã‚   In the words of social commentator Annie Turner: â€Å"†¦it has turned into the eighth wonder of the world because it has not been regulated, because anyone can put up a website, because it can be all things to all people, because it has changed the way we work, are educated and play.†   The fact that content is not regulated attracts more people to it on a daily basis.   These new users can then become contributors by simple interaction; be it an acknowledgment of what they have read in a user forum (a dedicated area on the Internet where people can discuss any subject matter, originally called Bulletin Board Systems) to creating a brand new website dealing with the subject matter.   This process demonstrates the organic str ucture of the Internet and how it has become such an important source of information across the globe. The Internet allows freedom to share information and ideas.   The vast abyss that is cyberspace can be explored by almost anyone who has access to a modem and a computer (and more recently this can also include mobile phones, televisions and even refrigerators!)   People can add their thoughts and ideas to the Internet and these can then be shared amongst a mass audience.   This process of sharing ideas is the backbone of the Internet.   One of the contributing reasons for the popularity of cyberspace is the freedom to share knowledge with others.   This ideal has been argued against by groups that feel that the Internet should be regulated but a case for its defence can be traced back to the third US president Thomas Jefferson who wrote: â€Å"That ideas should be freely spread from one to another over the globe, for the moral and mutual instruction of man and improvement of his condition seems to have been peculiarly and benevolently designed by nature when she made them like fire, expansible over all space without lessening their density at any point, and, like the air, incapable of confinement or exclusive appropriation. Inventions, then, cannot in nature be a subject of property.†Ã‚   This was written almost 200 years ago and is still poignant today.   This freedom of information is the backbone of democracy (although it can be argued that this no longer exists in its truest from) and relates to the fluidity of the Internet. Another way in which cyberspace can be seen as a platform for creative expression is when it is used as a device to disclose information that would normally be guarded by political parties.   This ability to release information may be taken for granted in the West where tabloid headlines can seemingly uncover storylines that would be more suited in pulp fiction novels, but in suppressed countries such as Burma and China this medium has proved to be a tool to spread news that would never allowed to be broadcast by its governments.   It has been reported that China is the biggest abuser of Internet freedom.   The government has censored several hundred thousand websites and, according to Amnesty International, has jailed 61 people accused of using the Internet to spread anti-Communist propaganda.   An interesting fact is that Yahoo! (an American-based Internet company) has adapted its search engine to filter out content unpalatable to the Chinese government; subjects as inflamm atory as Taiwan independence and democracy will not be found on a network supplied in China.   In addition to this, Amnesty International has accused Microsoft, Sun Microsystems, Cisco, Nortel and Websense of helping authorities track down people posting pro-democracy and other similarly subversive material online.   CriticismsThe main criticisms of those who champion cyberspace are based on the content of what can be found online.   Some argue that there are subjects that should not be disclosed to the population whilst others complain that the facts are diluted at best, and completely missing in some cases. In an article in the New Statesman, Andrew Brown reported that: â€Å"There are two general truths about attitudes to censoring the Internet. The first is that hardly anyone admits to favouring it in principle. The second is that whoever you are, and however libertarian, it should never take more than five minutes at the keyboard to find something you believe should be removed from the net, and its perpetrators locked up in a criminal lunatic asylum.†Ã‚   This view is hard to ignore as any Internet user can find themselves in a harem of unsuitable websites.   These sites could include pornography, neo-Nazism, torture, etc.   However, the freedom of cyberspace protects these sites just as it protects the rights of suppressed citizens to air their comments.   The content of a website should be approached in a subjective manner and a liberal pinch of salt should be taken with each sentence.   The most substantial argument against the freedom of cyberspace has always been about pornography.   Pornography is the biggest generator of traffic on the Internet and the latest trend of providing pornography direct to a mobile phone has witnessed commercial breaks on some mainstream digital television channels flooded with semi-naked women selling images directly to the customer.   This saturation has thrown up the argument that â€Å"†¦the freedom the internet potentially brings is more under threat from some grasping commercial companies who provide access to it than governments who seek to control that access.† This threat from big business shows a shift in power over how business and the Internet work in conjunction with each other.   It was suggested by Manuel Castells only three years ago that: â€Å"It would not be fanciful to say that the Internet transformed business as much, if not more, than business transformed the Internet.† It is not all about the simple exploitation of bodies that has brought objections to the way that the Internet works.   Because there are no real rules or regulations to conform to there will always be content that is considered to be so inaccurate that if it was released in the national press there would be an immediate libel case.   This lack of quality control can hinder the savviest Internet user when a trusted source has included information that may have been gathered from a secondary, unreliable source.   Such an inclusion will therefore render that piece as being factually incorrect.   This modern take of ‘Chinese Whispers’ has infected a large percentage of information to be found in cyberspace and as such its opponents’ views of it being an inappropriate use of knowledge can be appreciated, and their calls to regulate its content empathised with. Technology, Society CultureThe technology that is now available to the public has grown in a remarkable way since the early 1990’s and this has allowed access to the Internet for the masses (but it has still to reach the Third World nations).   Ã‚  Castells realised the link between technological breakthroughs and the Internet when he wrote that â€Å"The culture of the Internet is a culture made up of technocratic belief in the progress of humans through technology†¦Ã¢â‚¬    A growing concern, and one that has developed over the last twenty years, is that it is the younger generation that have accepted this technology and it is they who can fully appreciate the choice on offer.   The ‘establishment’, such as governments, are mainly run by people over the age of fifty.   Their grasp of new technology is repeatedly outdated and the fear of ‘losing touch’ with the youth is highlighted by the need to own a website in an attempt to speak t he same language.   However, this language is updated on a daily basis and miscommunication can lead to a lack of understanding on both sides.   In an attempt to stop this from happening it is not impossible to see governments, or leading businesses, curbing the development of technology to have more control over its destination. Society therefore drives the world of cyberspace.   It appears in its current state because that is how it has been formed by its users.   The information that is available has been posted into the realms of the Internet by people like us, for people like us.   Castells writes that: â€Å"Technological systems are socially produced.   Social production is culturally informed.   The Internet is no exception.   The culture of the producers of the Internet shaped the medium.†   This cultural development affords the Internet to continue growing with any facet available to those who want it.   It has allowed for an intellectual, utopian culture where it is up to the individual to determine what they want to see and what they choose to ignore.   This is a culture in society which can grow intellectually, but only if it recognises that not all they read is true.   It therefore begs the question whether or not a society can blossom if a main source of information i s not monitored to be accurate.   Donna Haraway writes about the ‘Network Theory’,a theory proposed in the 1970s by the Nobel Prize-winning immunologist Niels Jerne.   He hypothesised an immune system that was self-regulated.   Edward Golub explains that the network theory â€Å"Differs from other immunological thinking because it endows the immune system with the ability to regulate itself using only itself.† This theory can be viewed within the structure of the Internet where the organic nature of cyberspace is continuously updated and added to by its own infrastructure; its users and contributors. Conclusion  Ã‚  Ã‚  Ã‚  Ã‚   The Internet is a vast and powerful tool and as such it is there to be used or abused by anyone with access.   The arguments that the Internet should be regulated are important and should not be completely ignored.   The power that some governments and big business corporations have over the flow of information is very real and this is something that should be examined closely.   However, picking out certain aspects from cyberspace to be scrutinised will open a precedent for all content to be regulated.   This could then lead to a misuse of power and the freedom of creative input could draw to a halt.   Haraway expressed her concerns about this exploitation and the ways in which new technology can be hijacked for anti-social use: â€Å"The new communications technologies are fundamental to the eradication of ‘public life’ for everyone.   This facilitates the mushrooming of a permanent high-tech military establishment at the cul tural and economic expense of most people†¦Ã¢â‚¬  It is my belief that the ability to take on board information and decide whether to accept it on your own terms is far more important to personal and social development than being told what you can or cannot digest.   As such I believe that the World Wide Web, the Internet, cyberspace, or whatever moniker it falls under does constitute a new world of freedom and creative opportunities and the fact that it is not regulated by self-appointed censors should be applauded and defended.   In the words of Rosanna Stone: â€Å"In the space between [immense threat and immense promise] lies the path to our adventure at the dawn of the virtual age, the adventure which belongs to our time and which is ours alone.† Bibliography Brown, Andrew (1999) The Limits of Freedom – Censoring the Internet and Offensive Internet Sites New Statesman (12 February 1999 Issue)Burton, Graeme (2002) More than Meets the Eye (Third Edition) Arnold PublishingCastells, Manuel (2002) The Internet Galaxy: Reflections on the Internet, Business and Society Oxford University Press Clark, Robert (2005) Time to Curb Net Censorship Support Telecom Asia (January 2005 Issue)Curran, James (2000) Mass Media and Society Arnold Publishing Danson, Lawrence (1998) Wilde’s Intentions: The Artist in His Criticism Clarendon Press Flanagan, Mary (2000) Navigating the Narrative in Space: Gender and Spatiality in Virtual Worlds Art Journal (Fall Issue 2000)Golub, Edward S. (1987) Immunology: A Synthesis Sunderland Haraway, Donna J. (1991) Simians, Cyborgs and Women: The Reinvention of Nature Free Association Books McCullagh, Ciaran (2002) Media Power PalgraveStone, Rosanne Alluquere (1996) The War of Desire and Technology at the Close o f the Mechanical Age Cambridge MIT Turkle, Sherry (1996) Life on the Screen; Identity in the Age of the Internet Weidenfeld Nicolson Turner, Annie (2002) Censorship and the Internet: Just Where is the Real Threat to Internet Freedom Coming From? Communicate Magazine (June 2002 Issue)Letter addressed to Isaac McPherson written on 13 August 1813 from Thomas Jefferson

media :: essays research papers

-Reaction Paper- Investigative Journalism Media funtions as a overseer when it use its power to expose wrong side of administrative associations. This media’s â€Å"watchdog† feature show itself with investigative journalism. Investigative Journalism has positive and negative effects above all state and private instituons. We have to look at these different aspects. Investigative journalism’s biggest positive effects is to push people work correctly and honestly who work in different instituons. Nobody wants to fall into a trap who composed by a investigative journalists and its hidden camera. Now this hidden cameras mostly using for exposing the misuse of authority or health scandals. Investigative journalism start to function as a survelliance in community in course of time. This type of journalism provides people to work right and prevents them to abuse community or the state. Investigative journalism ensure that justice is done. However there is a problem. Is investigative journalist in a right place to investigate? or does this journalists regards his self-benefits? This compose of the negative sides of the issue. When we look at media bosses in Turkey. There are portraits of people who has different kinds of corporations in industry and market. And we can’t expect that they expose their rotten sides of their corporations. Because this againsts to their self-benefits. They naturally don’t want to lose prestige and profit. So there can be a lot of wrong things which is concealed because of this media bosses self-interests. Another thing about investigative journalism is the hidden camera. This harms people’s personal rights and honours. Sometimes people who is suspicious pulled to trap by a journalist. And this is not suitable for the principles of journalism. Also hidden camera sometimes enters to private places such as houses of people. Exposing them without permission in their private place is not ethical for my opinion. In addition to this, investigative journalism generally exposes small companies which composed with small amount of money and worker. After exposing them, they can’t recover themselves and put an end their business life in the market.

The Numbing of the American Mind: Culture as Anesthetic Essay -- Thoma

ENLIGHTENED SURRENDER How many essays have been written about American culture? How many books dedicated to the intense scrutiny of every aspect of our modern society? Countless thoughts, countless theories—many of them lost in the very chaos that the authors spent 300 pages explaining. There are always solutions, which their creators seem entirely convinced will solve this mess, but the truth is that these ideas are often impractical and unrealistic. But no one writes an entire book complaining without offering us something at the conclusion. Sociologists parade around with their own superfluous speculations, conflicting and contradictory, but this must be better than unresolved pessimism, right? Thomas de Zengotita doesn’t seem to think so. In his essay, â€Å"The Numbing of the American Mind: Culture as Anesthetic,† he discusses the perceptual overload of Americans and the differing and indistinguishable levels of reality in which we exist. He claims that most people don’t know and can’t recognize what is real what is not. There are so many different kinds of reality—he lists sixteen out of many—and they have all become so intertwined into our lives that they bleed together. As a result of these discrepancies, we can no longer appreciate the differences between what is important and what isn’t. Using modern examples like the events of September 11th and the media’s response to them, de Zengotita explains how we’ve become numb to things â€Å"so enormous, so horrific, so stark, that [we believe] the great blob of virtuality that is our public culture would be unable to absorb it† (342). It is a typical review of American society— pessimistic and daunting—though his sarcastic humor and nonchalant attitude are... ...ous diagnosis of a serious condition. Would we rather not know about it because it happens to be incurable? This goes much deeper than subject matter, or political bias, the usual folder. It determines the way we frame everything . . . the attitude we bring to living in this world of surfaces. (de Zengotita 350) No amount of truth can ever bring about change on the grand scale, but the way you chose to function within it will define the difference between prisoner and progressive. In expressing a helplessness to do nothing, de Zengotita has accomplished more than all the theories in the world. â€Å"It was to have been the end of irony, remember?† (de Zengotita 340) Works Cited Zengotita, Thomas de. â€Å"The Numbing of American Minds: Culture as Anesthetic.† 2002. The Text Wrestling Book. Eds. Donna LeCourt, et al. Dubuque, Iowa: Kendall Hunt, 2005. 340-351.

A view from the bridge †Arthur Miller :: English Literature

A view from the bridge – How does Arthur Miller A view from the bridge – How does Arthur Miller prepare the audience for the dramatic events at the end of the play? Arthur Miller was born in New York City on the 17th of October 1915. The son of a small businessman, Miller worked in a warehouse after graduating from high school. When he saved enough money he attended the University of Michigan. During the Second World War Miller moved to New York where he began writing plays. A View from the bridge was written in 1955, it was partly based on the idea that his parents were both immigrants into the United States. When writing the play Miller was trying to create a real life story, concerning a tragedy of ordinary people. In the late 1940’s Miller became interested in the workers of New York’s Brooklyn Harbour, which was where he had previously worked. Writing this play allowed him to express his feelings towards poorly paid workers; most of whom were immigrants. The first character introduced in the play is Alfieri; he is a ‘big time lawyer’, who speaks a recognizable standard American English, unlike everybody else featured in the play. Alfieri is a very mysterious character; he is constantly appearing and disappearing into the shadows, or the ‘black of the night,’ which leaves an impact on the audience as they are curious to whom this person is and what his role is in the play. He basically recites the prologue and epilogue to the play and comments on the main action. The audience are constantly kept on their feet guessing as to what will happen to the relationship between Eddie Carbone and Catherine. Instantly they realize that throughout the play there will be a lot of conflict between these two characters. However they are not sure what all the arguments will result in. The most anticipating moment of the play is the final scene; Miller has prepared the audience for this ending throughout the play. Miller creates plenty of tension during this scene, because there are a number of endings that can be used, the audience is eager to find out which one will take place. Miller had prepared a number of endings but thought that the chosen ending would have the most effect. Another possible option to end the play was Eddie committing suicide, although this is very dramatic, it did not suit Eddie’s character. Miller describes Eddie as a strong-minded man, who is always willing to fight for what he wants. Therefore the chosen ending was much more effective as Eddie didn’t

Islam and Christian Traditions Essay

Christianity and Islam see recurring themes in beliefs and practices. They share stories from past prophets that declare they know the word of God. God tells prophets about a time before earth and gives them knowledge to spread to man. Life holds sanctity that is not for man to wander and do as their physical bodies might allow. Both Islam and Christian traditions make examples and tell the history of how God desires man to live. There are foretellings of vast destruction when man lives among evils and sin. Muslims say that, like God, Allah will see and end of man and will only accept the faithful into paradise. Traditions of Christianity and Islam can relate to each other by commemorating a higher power as known as God. The higher power in Christianity is known as God, while the higher power in Islamic traditions is known as Allah. In Islamic traditions, Allah shouldn’t be confused with the God known in Christianity because the word Allah is translated as â€Å"the God† in Arabic. Christian and Islamic traditions have cosmogony, eschatology, afterlife, moral codes, and duties that serve the purpose in their existence. Both Islamic and Christian traditions will see some similarities and recurring prophecies that exist in their practices. Christian traditions and cosmogony can be found in the Bible. The Bible is many stories that contains passages from prophets of God and is compiled of several books. The book of genesis describes how God created the universe. He made light, darkness, heaven, earth, fruits and vegetables. On the fifth and sixth day of the week to create the universe and earth, God made beasts and made man that resembles the appearance of God. Genesis 1:29 said to man, â€Å"I give you every seed-bearing plant on the face of the whole earth and every tree that has fruit with seed in it. They will be yours for food† (BibleGateway, 2011). God warns Adam and Eve, the first of all mankind, that there is forbidden fruit that cannot be touched. Genesis 3:3 says, â€Å"But of the fruit of the tree which is in the midst of the garden, God hath said, Ye shall not eat of it neither shall ye touch it, lest ye die† (King James Bible Online, 2013). When Adam and Eve consumed the forbidden fruit despite God’s warning, Adam and Eve were cursed by God to multiply the earth. Eve, the first woman, was created by God to provide Adam, the first of all man, companionship. It was in her mistake that Adam fell under temptation to then be commanded by God to take power of beasts and man to begin the teachings of God on earth. Prophets of God taught man to obey commandments in order to be prepared for the end of the world. Prophets, pastors, preachers, or bishops in Christian sects will preach the gospel of the Bible that predict when Christ will return to earth and reach final days before heaven. Most interpretations of the Bible explain how there is good and evil; Evil will cause suffering for mankind. Christians believe that Christ will return and save those who are faithful to God when there is a final judgment of man. Matthew 24:14 reads, â€Å"And this gospel of the kingdom shall be preached in the whole world for a witness to all the nations, and then the end shall come† (Christian Bible Reference, n.d.). Evil will be taught through deception, so God will need true believers. There will be a place in heaven for Christians to live with God after their trial on earth. Man will be accepted into heaven if he upholds morals and duties that Christians are taught. Many Christians believe that heaven is a place on earth. The book of Luke (21:32-33) reads, â€Å"Truly I say to you, this generation will not pass away, till all be fulfilled. Heaven and earth will pass away, but my words will not pass away† (King James Bible Online, n.d.). In heaven there will once be so much evil that the wicked will overpower the good through violent wars. Like earth, God will create a new heaven for the blessed people. Heaven will be free from evil for many years until its end of days only through destruction and misery upon its holy place. In heaven killing is much of a sin as earth. God commands man not to sin such as killing, adultery, worshiping idols, and stealing among other things. If man upholds these morals and duties, he will be accepted to heaven when salvation c omes. Traditions in Islam are similar religious practices that are commemorated through the Qur’an and are told how the earth and man were created. Like Christians, Muslims believe that Allah, or the God, created a heaven, a world, and the universe with all materials in it that are living or not. The book of Surat Al-Baqarah (2:29), in the Qur’an, reads, â€Å"It is he who created for you all of that which is on the earth. Then he directed himself to the heaven, (his being above all creation), and made them seven heavens, and he is knowing of all things† (Quran, n.d.). Islamic traditions began when the prophet Muhammad spoke with Allah. Allah told Muhammad of the creation of the first man on earth, who is known as Adam, who had a female companion. Allah also told Muhammad how Adam ate the forbidden fruit when he was restricted not to do so. Muslims’ eschatology tells how there will be an evil presence who will be violent and cause destruction. There is also an afterlife of heaven and hell as Christians believe. Although the evil are wicked, they too will be brought to heaven and see a final judgment from Allah. â€Å"And as for those who disbelieves, I will punish them with a severe punishment in this world and the hereafter, and they will have no helpers† (Quran, n.d.). Islamic traditions say how there will be an end of time. There will be warnings from Allah on earth. An antichrist will appear before the last day who will be cruel to man. Followers of the antichrist and the unbelievers of Allah may never reach heaven. Heaven will be a paradise that the Qur’an describes, â€Å"No empty talk will they hear there, nor any call to sin, but only the tiding of inner soundness and peace† (Religious Tolerance, 2005). Morals and duties are important to Muslims in order to avoid sin and reach heaven. Allah tells prophets of his commandments so that man will be holy and plentiful. â€Å"The ones who break the covenant of Allah even after its (binding) compact and cut (off) what Allah has commanded to be held together and corrupt in the earth, those are they (who are) the losers† (Quran, n.d.). Allah tells man not to steal, murder, disobey parents, covet, or commit adultery among other things. When man disobeys Allah, they are expected to know sin from righteousness and should repent for forgiveness. â€Å"..Except for those who repent after that and correct themselves. For indeed, Allah is forgiving and merciful† (Quran, n.d.). The man who doesn’t repent may be a sinner for life and will be questioned on judgment day. The Islam and Christian traditions both believe in a God that share similar interests for mankind. God and Allah teach man how they can return to heaven after their days on earth after Adam and Eve’s tribulations. Prophets will spread the knowledge to man from God as a lesson not to fail under certain temptations and have faith in God to live in paradise with him one day. After time, the rise of evil is bound to cause awfulness when man turns to disobedience and non believing even during a salvation. Heaven will be free from sin and man can live in a peaceful place until it is once again ruined by tribulations. God will continue to confide with man in order for glory to persevere.

Pch International

CASE: GS-61 DATE: 04/01/08 PCH INTERNATIONAL: MANAGING THE FLOWS OF INFORMATION, GOODS, AND FINANCE Liam Casey, CEO of PCH International Limited (PCH), was in every way an adventurer. Born and having spent most of his youth in Cork, Ireland, Casey had never lived in China until he started traveling and working in the country in his late twenties. Yet, without speaking much Chinese, Casey managed to establish an innovative supply chain solutions company in China’s factory city of Shenzhen and grew it to almost 700 employees in just ten years.By 2007, PCH had become a global company; it had customers in Western Europe and North America and its IT operations, manufacturing and warehousing support was located in Ireland, China, Singapore, Taiwan, South Africa and Brazil. In fact, so successful was Casey’s business that the â€Å"mildmannered and extremely diligent entrepreneur won the Ireland 2007 Ernst & Young Entrepreneur of the year award. †1 Collecting business c ompetition accolades was not what Casey had in mind when he first started PCH.When Casey went to Taiwan in 1996 to attend a computer and electronics fair, he saw an opportunity to help global technology companies take advantage of Asia and China’s low-cost supplier base and manufacturing capabilities. Although PCH started out in the mid-1990s as a sourcing agent of low-priced electronic components from Taiwan and China to the Western world, by 2007 it had evolved into a provider of comprehensive supply chain solutions to global technology companies. PCH was designed to address the needs of a complex global technology supply chain landscape. Arthur Beesley, â€Å"Casey Picks Up Overall Award,† Irish Times, October 26, 2007, p. 12 Jennie Tung prepared this case under the supervision of Professor Hau Lee as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright  © 2008 by the Board of T rustees of the Leland Stanford Junior University. All rights reserved. To order copies or request permission to reproduce materials, e-mail the Case Writing Office at: [email  protected] stanford. du or write: Case Writing Office, Stanford Graduate School of Business, 518 Memorial Way, Stanford University, Stanford, CA 94305-5015. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means –– electronic, mechanical, photocopying, recording, or otherwise –– without the permission of the Stanford Graduate School of Business. PCH International: Managing Goods, Information and Financial Flows GS-61 p. 2 STATE OF THE TECHNOLOGY SUPPLY CHAINThe Maturing Supply Chain By the twenty-first century, technology products of all sorts became ubiquitous and profoundly transformed the way people lived and worked. However, in the 1990s, in comparison to other global supply chains such as garments and toys, which had over some 50 years of outsourcing experience, the technology supply chain was still in its early development. For example, by the mid-1990s, the digital camera, the mobile phone, and the laptop computer had only just become a mainstream consumer category.As such, in addition to focusing on designing cutting edge products, technology companies were trying figure out the most efficient ways to deliver their products to end consumers. On the consumer technology supply chain timeline, the 1970s and 1980s showed only a small number of global brands, such as the large technology conglomerates Sony and Siemens, who were industry leaders in many product categories. These industry leaders relied on their vertically integrated supply chains and their ability to lock in suppliers to keep new competitors from entering the market. However, as venture capital funding became more available in the 1990s, the technology market saw continuous waves of innovation, shorter product lifecycles, new products and brands. At the same time, the 1990s also saw a drastic increase in independent manufacturers and suppliers, particularly in Asia. These businesses had developed sophisticated technical capabilities after serving the global brands for a number of years. The confluence of these factors changed what it took to win in the technology space. Vertically integrated players of the past were replaced with engineering-savvy, asset-light marketing and design companies. As such, both large and small technology companies had the opportunity to bring products to market through the use of sub-contracting. By the late 1990s, consumers not only had more product choices but also multiple channels to buy from, including online stores, which were becoming popular. Within the world of technology products, the supply chain systems for the wide-ranging product types were not uniform. For example, the more complex large systems, such as telecom base stations, had a diffe rent supply chain model from the smaller consumer electronics products, such as personal MP3 players and laptop computers.This case focuses on the small consumer electronics supply chain, whose characteristics included having many component suppliers, with assembly sites doing the final assembly and testing. The modular structure of technology products meant that the brand owners had to manage a large network of suppliers. To stay competitive, large and small technology companies began to outsource a significant part of their supply chain to third party vendors in order to focus their resources on brand differentiating activities, such as product design and marketing. This outsourcing trend in the 2 3PCH International Limited (PCH), â€Å"Information Memorandum for Potential Investors,† November 2007, pp. 3-5. Ibid. 4 www. Alibaba. com was an online directory of suppliers in China 5 PCH, op. cit. pp. 3-5. PCH International: Managing Goods, Information and Financial Flows GS-6 1 p. 3 1980s created a new industry known as Electronic Manufacturing Services (EMS). By the 1990s, the EMS industry had a number of global scale players, notably Hon Hai Precision Industries (Foxconn), Flextronics, Celestica, Sanmina-SCI, Jabil, Elcoteq, and a few dozen others.In addition, several thousand smaller companies continued to occupy EMS niches and served a wide range of consumer electronics brands. The business model for the EMS industry was based on large economies of scale in manufacturing, raw materials procurement, pooling of resources, and industrial design expertise, in addition to other value-added services such as warranty and repairs. Products manufactured by EMS companies were labeled with the brand owner’s brand and corporate identity.As price competition intensified in the consumer electronics industry in the late 1990s, EMS players gradually shifted their manufacturing assets to lower cost areas, such as cities in Southern China. While the leaner over head structure provided numerous operational and financial benefits, the technology companies faced enormously complex challenges in dealing with procurement, manufacturing, and logistics vendors. Fragmented Supplier Base Many technology companies looked to Asia as an outsourcing location, given the number of low- cost manufacturing and component suppliers in the region.By 2007, China became a major sourcing and production hub for many technology companies. However, to take full advantage of China’s low cost supplier base was not always straightforward. As China was rapidly developing into the factory of the world, many companies strove to achieve low cost while maintaining quality. Low cost technology goods suppliers were abundantly available in the coastal regions of China, in particular in the southern city of Shenzhen, just a 50-minute train ride from Hong Kong. As a procurement officer for a technology company, trying to identify the most suitable supplier could be a hug e headache.For example, for every cable connector, printer circuit board, and MP3 player accessory item, there were literally hundreds of suppliers to choose from in China. 4 For many technology companies, many of these components were not core or strategic. However, poor management of component parts could impact every aspect of the supply chain, leaving behind many unsatisfied customers. Therefore, to take full advantage of China’s wealth of suppliers, technology companies needed to filter through numerous vendors to find ones that optimized cost, speed to market, and quality.Working Capital Constraints While independent manufacturers and component suppliers benefited from global outsourcing trends in the late 1990s, they also had to face increasing financing challenges. Casey, who had worked with hundreds of factory owners, learned of the challenges in raising working capital: [In the earlier days of outsourcing,] suppliers were able to take a purchase order of a guarantee d volume from a well-known company to the bank and, upon verification, would be able to obtain working capital inancing. Letters of Credit (LCs) were issued by the purchaser. However, guaranteed longer term product volumes have been replaced by rolling short term product guidelines forecasts. The reason is as a technology company faces tough competition and declining PCH International: Managing Goods, Information and Financial Flows GS-61 p. 4 margins, it needs to manage costs aggressively by minimizing inventory build-up. This is necessary given the need to match the ebb and flow of customer taste and requirements.They in turn demand ‘just-in-time’ delivery from their suppliers— which shifted some of the inventory holding costs upstream to its vendors, further increasing its need for working capital. In addition, sometimes the purchasing company may not be one of the blue-chip globally recognizable brands; banks sometimes perceived this as an additional credit r isk. This trend resulted in substantial volatility and pressure on some suppliers as banks were not as willing to provide trade financing given the perceived increased risk levels.This meant some suppliers found it tremendously difficult, if not extremely expensive to obtain financing. Increasingly Demanding Customers Consumer technology products of the twenty-first century were about superior functionalities, seamless ordering process (both in-store and online), timely and accurate product delivery, and a memorable out-of-box experience—referring to how consumers felt when they opened the box and reacted to the overall product presentation. Of course, it was critical that the products themselves be â€Å"trendy† and â€Å"cool,† and accompanied by a whole host of accessories to jazz up the products.For many consumers, technology products were perceived in the same vein as fashion goods. Brands, therefore, needed to meet constantly changing tastes and extremely short and tight product development cycles. While professional technology products generally placed more emphasis on product functionalities, they still required support services, such as regional configuration (e. g. , language differences and pre-loaded software) and just-in-time delivery of products, in order to minimize inventory costs. Finally, technology companies needed to provide their customers these highly customized products and purchasing experiences at a competitive price, while achieving all of the above. These were just some of the characteristics that made the technology supply chain much more challenging than the supply chain of more traditional industries. EMS companies, as discussed above, while able to deliver manufacturing savings to brand owners, were unable to adequately address these pain points, given that their business model focused on large scale production.The end consumer’s increasing demand for low price and customized products made it challengi ng for EMS companies to address these evolving market trends. TECHNOLOGY SUPPLY CHAIN FLOWS AND CHALLENGES An insightful entrepreneur, Casey saw the pain points described above as opportunities. Over the years, Casey had thought a comprehensive solution addressing the market and customer challenges would provide extraordinary value for technology companies. In PCH’s menu of services, the over-arching theme was to help clients better manage the three distinctive flows in the technology supply chain: information, goods, and financial.These flows essentially addressed every element required to take a product from concept to being retail ready, including the key steps of manufacturing, packaging, product customization, logistics and supplier financing. (See Exhibit 1 for an overview of the three flows in the technology supply chain. ) PCH International: Managing Goods, Information and Financial Flows GS-61 p. 5 The Virtual Supply Chain The virtual supply chain referred to informa tion flow that occurred in the supply chain as goods moved through the various stages.The information requirement might be for a unique customer, such as, â€Å"when will my goods arrive at my door step;† or for the planning department in a company, â€Å"how much inventory should I order given existing inventory levels in different parts of the supply chain? † When a company outsourced each portion of the supply chain to different vendors, disbursing and piecing information back together from disparate sources could be extremely challenging. The Physical Supply Chain The physical supply chain referred to he steps by which physical goods went from product concept to their final customers; it dealt with the movement of goods from various physical locations, such as procurement of components, manufacturing, and logistics. 6 As discussed in the section on challenges facing the technology supply chain, the large number of suppliers and manufacturers in Asia made it extreme ly cumbersome for companies to identify the most appropriate vendors for their needs. In addition to price negotiation, service quality also required significant due diligence.For example, incidences of delinquent delivery and product quality issues were commonplace. Given the myriad of choices that consumers had for any given technology product, the margin of error allowed was very small. Another challenge in the physical supply chain was customization of products. A question often asked by supply chain executives at technology companies was, â€Å"how should I best take advantage of economies of scale by producing in volume while achieving the customization for each local market, and sometimes for each individual customer? This question highlighted the challenge of managing market-level customization since most technology products needed to reach multiple countries around the world. The challenge could be as simple as placing different language labels on products, to more complex tasks such as first consolidating product shipments from different manufacturing sites and then assembling various units for unique customer orders. Finally, logistics and shipment also needed to be managed in an efficient and cost effective manner.The Financial Supply Chain Tied very closely to the physical flow of goods, the financial supply chain referred to the financing required for each step of the supply chain. For example, a manufacturing contractor would need financing to buy components and pay its workers to make the products, before shipping them to the technology company to collect the revenue. Established vendors may have had enough cash to last through a collection cycle but smaller or newer vendors could be strapped for cash when a large order came through.While commercial banks could provide financing for some vendors, new or smaller vendors ended up paying extremely high interest First Capital Presentation at the Zhejiang University Innovation Institute’s Su pply Chain Forum, Zhejiang, China, November 13-14, 2007. 6 PCH International: Managing Goods, Information and Financial Flows GS-61 p. 6 costs, at least in the initial years of operations—until they had developed a stronger track record to borrow at more favorable rates from banks. THE PCH SOLUTIONBy 2007, PCH counted a number of global clients as customers. Among its clients were three of the top five personal computer companies, three of the top five telecom and networking companies, and the top five leading contract electronics manufacturers. 7 According to Casey, â€Å"PCH offers customized solutions for each client. PCH helps to manage the various communication, culture and geographic barriers that often create operational friction between the [technology company] and its suppliers in the supply chain. In Casey’s framework, each PCH solution could be mapped to the various challenges in the three flows of the supply chain, thereby addressing the various gaps in co ordinating these flows. For example, PCH manufacturing services addressed the needs in the flow of goods, while PCH Capital addressed the needs in the financial flow in the supply chain (See Exhibit 2 on PCH services categories). Like PCH’s technology customers, Casey believed an asset-light approach in managing his business worked the best and, therefore, he had no ownership in any of the vendors that PCH worked with.PCH was neither a supplier of goods nor an importer for global technology companies. PCH was a service provider—a coordinator that helped orchestrate and maximize the benefits of an outsourced supply chain for all parties involved. Addressing the Needs of the Virtual Supply Chain Information transparency was a highly valued feature for technology companies given the many moving pieces involved. Casey explained why its software services division was core to PCH’s offering to clients and why developing these tools was important to PCH in the long ter m: Transparency of process is a central PCH offering.This is why we’ve developed a series of online software tools that drive internal PCH activities and to provide a portal for clients to oversee and participate in the process. These systems enabled PCH, customers and third-party suppliers to view and share the same data. [As all parties] are working with the same data on the same platform, confusion is reduced, the need for status communication is reduced and clients can have full visibility to PCH’s activities even [though] they may be half a world away. By 2007, PCH had developed a set of software visibility tools that consolidated relevant information for each individual customer.Examples included StatusFlo, which showed inventory levels of goods in the various locations of the supply chain; and TransFlo, which housed all information relevant to billing and shipping documents in one central location for each order. Given the myriad of suppliers, ChinaFlo provided a database of background data on over 900 factories evaluated by PCH. Each factory profile contained detailed information ranging from basic background information, to factory qualification reports, and to capabilities case studies. Customers also had the ability to view pictures of their products and even search 7 Beesley, loc. it. PCH International: Managing Goods, Information and Financial Flows GS-61 p. 7 for hotels in the vicinity of the factories, as the factory profiles had GPS coordinates associated with them. Resolving the chaos and lack of data transparency in the virtual supply chain was one key value-add that PCH offered. (See Exhibit 3 for a screenshot of different sections of PCH’s information portal. ) Addressing the Needs of the Physical Supply Chain Casey reflected on the path that PCH took: The historical success of PCH was in manufacturing services where goods were sourced and manufactured for our clients.This was how the company got started. Over time, PCH had moved deeper into the product life cycle where solutions were replacing entire distribution systems; for some of our clients, [PCH] took over warehousing, inventory management, and retail preparation functions. We wanted to move to higher value services as opposed to being just a sourcing agent. With this strategy, PCH developed three core services that addressed the complexity and confusion of sourcing and manufacturing in Asia, in particular in China. As of 2007, these services were manufacturing, postponement, and fulfillment services.Manufacturing Services PCH offered its manufacturing services to clients as early as the product development phase. Technology companies would approach PCH with ideas for products and PCH’s design team then developed prototypes for manufacturing. Casey proudly mentioned how PCH’s differentiated services created benefits for the entire supply chain. Even if our clients just ask for product quotes, we would put the product through i ndustrial design optimization that yields the best cost for the customer while minimizing potential quality issues.Many of our clients did not expect this but this is the level of services that we aim for. We do not tie [the product design] to the capabilities of any specific factory group but act independently on behalf of our clients†¦This level of services also compares favorably to just a [company to outsource manufacturer] relationship where the focus is on landing the contract and meeting minimum quantities; [this also meant] final product quality and the end user experience being far down the outsource manufactures’ list of priorities.The other part of PCH manufacturing services entailed factory identification, qualification, and ongoing monitoring. For this set of services, PCH also leveraged its software services (see information supply chain in previous section) to differentiate itself from other competitors. Casey said, â€Å"Rather than just identifying the factories for manufacturing, we would map out the locations of the various potential manufacturing sites and how that would fit in the overall supply chain. This strategy ensured that the entire supply chain was optimized, taking into consideration the later steps in the process, such as warehousing and shipment consolidation. PCH International: Managing Goods, Information and Financial Flows GS-61 p. 8 Postponement and Fulfillment Services Traditionally, once the technology products were produced and quality checked in the approved outsourced factories, they were shipped to warehouse facilities before going to the various retail destinations.A potential downside to this model was that when the bulk shipment arrived at the retail destination, which might be in a high cost country such as the U. S. or Europe, the products still needed to be further customized for each local market; whether it was adding country appropriate labeling or putting on UPC labels. This meant that even thoug h a company had saved by manufacturing its goods in Asia, this last mile customization could bring the total product costs back up. The other downside was that a technology company also needed to pay for inventory holding costs.And, this inventory had limited flexibility; a company could not move it to other geographies, even if a particular product was running a shortage in other locations. To address these challenges, PCH offered postponement services—the act of holding goods in the supply chain (often in bulk format pending final assembly or packaging) for delivery to a warehouse, retail store or the end consumer. 8 In Casey’s words, â€Å"What we are doing is bringing a vanilla product to a stage in a process and then flavor in the last minute. So you're postponing the flavoring. The final steps would only be carried out once the demand was clearly visible. Most of PCH’s clients’ products were manufactured around the coastal areas of China, so PCH st rategically located its postponement processing facilities in the southern Chinese city of Shenzhen, and in Singapore. These locations were selected for their relatively low labor costs (some of the final packaging was quite labor intensive) and the availability of favorable tax-free trade zones. For example, one of PCH’s clients was a global personal computer (PC) company.When its PCs arrived in Shenzhen’s postponement processing facility in bulk, the machines had no software. Given these computers could be destined for different locations around the world, PCH would wait for the final order before it preloaded the different language operating systems into these computers for the various markets. These computers were held in Shenzhen’s Futian Tax Free Trade zone; which yielded lower inventory holding costs, as compared to having them sit at the warehouses in a higher cost country location.As PCH’s goal was to help customers fully manage the physical supp ly chain, its fulfillment services addressed the â€Å"handling of product orders from clients, their distribution chains or directly from end consumers over the Internet. †9 This meant that after products had gone through final assembly and packaging in the postponement phase, PCH could have them delivered directly to retail stores, ready for sale or to the end consumers’ doorstep. Working with third party logistics providers, PCH had several options for pickup and shipment to overseas locations.Even though PCH provided postponement in China, technology products were often transported by air, so this did not mean PCH’s response time was much worse than the conventional approach of having postponement at the retail distribution center in the U. S. Casey explained why the combination of postponement and fulfillment services worked well for PCH’s technology clients and how it addressed challenges in the broader market environment: 8 9 PCH, op. cit. pp. 9-13 Ibid. PCH International: Managing Goods, Information and Financial Flows GS-61 p. 9The constantly shifting consumer tastes and trends make forecast volume for any [technology] product difficult. When Internet sales direct to a customer’s home are added into the array of distribution possibilities, the processing needs become even more complex. With postponement and fulfillment services located close to the manufacturing sites, it drastically shortens time to market. By offering a variety of packaging and shipment options, PCH is able to both manage fast and slow moving inventory in a manner that reduces the overall supply chain costs to [technology companies].This approach provides clients with substantial leverage in their operations: total factory commitments remain somewhat unchanged, product inventory quantities shrink, warehouse networks shrink, if not disappearing all together, and the cost of operating the supply chain falls. PCH’s Unique Position In summarizin g PCH’s value proposition, Casey believed PCH’s role as the coordinator in the supply chain was beneficial for all parties involved: Our purpose as a company is developing partnerships, delivering peace of mind.None of our customers have ever gone direct to a factory. Some customers have made phone calls to factories, but the factories will call us immediately because [those factories also made products for five of our other clients. ] So we bring a very big book of business to these component suppliers and that's why they like to work with us. The factories are getting a steady flow of business through our volume consolidation. At the same time our customers also benefit from economies of scale by consolidating their orders with their competitors, which are nonproprietary stuff.Casey believed that in the 1990s, global companies operating in China were all about the knowledge challenge and everyone was just trying to learn about the landscape. By 2000, â€Å"it was al l about the execution challenge; that is, how do you actually do it and benefit from what China has to offer,† said Casey. Client Case Example10: Managing the Physical and Information Supply Chain PCH worked with a wide range of technology clients; but perhaps its partnership with one global consumer technology company provided the best example to illustrate the principles behind technology supply chain outsourcing.Situation The client was a global consumer electronics company and, since the early 2000s, had produced a number of blockbuster products that were sold worldwide. Sales revenue was growing rapidly and most of its products were manufactured in Taiwan and China. These products were sold over the Internet, in addition to a variety of retail outlets, and were often sold with accessories such as protective carrying cases, spare parts, and alternative configurations of the products. PCH operated under a confidentiality agreement with most of its clients; hence, actual cli ent names have been disguised.Some of the company data provided was fictitious to preserve anonymity. 10 PCH International: Managing Goods, Information and Financial Flows GS-61 p. 10 Playing in the extremely competitive consumer technology space, this client had introduced new products every year or so—sometimes with an entirely new product line and sometimes with upgrades to existing models. Complication In the initial years, this client worked with a global logistics provider to operate its more than five North American and European warehouse facilities; inventories from Asia arrived in bulk and were stored in these locations.Its products were delivered to end consumers or retail locations upon ordering. Its accessory parts were produced by different factories in Asia and were then shipped separately to various destination markets. For example, when customers ordered four accessories, they might receive four different shipments on four different dates, leaving them sometim es confused and unable to track the status of their orders. This arrangement was also expensive for the technology company, given the high cost of inventory storage and the multiple airfreight bills for each customer.More importantly, the client promised its end consumers more than just beautifully designed products, it also promised a superior consumer experience—from placing the order on the Internet to actually receiving the product. The order status had to be available real-time and visible to consumers at each stage of execution; the delivery commitment to its end consumers was two to three days to the doorstep, which was often half a world away from where the goods were produced.Finally, considerable care and attention were given to the packaging and presentation of the products to ensure that end consumers were truly delighted when opening the box. Solution In serving this client, PCH set up an on-site real-time data transfer between client’s and PCH’s sy stem in Shenzhen, China. As customers place orders in North America, the orders were consolidated and fed live to PCH’s processing facilities.PCH had already stored bulk inventories of various accessory parts in its facilities; once information for each orders were received, the PCH teams in Shenzhen then go and grab the various parts and assemble them into one single package for each customer order. Customized and country appropriate packaging, including items such as usual manuals and in-country product support, were added to these parts. Finally, product codes were added to products in case the consumer wanted to a return or obtain customer services in their local customer service centers.This solution brought all product handling (post manufacturing) into China and all orders were shipped directly from one location to the final destination. This translated into savings on logistics as customers were now receiving only one shipment as opposed to multiple shipments. Address ing the Needs of the Financial Supply Chain As discussed in the state of the technology supply chain section, component suppliers and factories sometimes ran into a working capital crunch when unable to obtain feasible financing from commercial banks.On the opposite side of the table, the commercial banks generally appreciated the opportunity to help finance the components suppliers and factories, thereby gaining more visibility into the operations of these small to medium size operations. Casey drew insights from observing these challenges and decided that PCH was actually in a great position to help de-risk the entire supply chain—for the technology companies, banks, and the factories. Casey described how PCH’s services were different from those of other global PCH International: Managing Goods, Information and Financial Flows GS-61 . 11 logistics providers: â€Å"The FedExes and DHLs know where the boxes are, but PCH knows what’s inside the boxes. † Gi ven its span of participation in the supply chain, PCH gained a wealth of knowledge about the factories, the products, and the ultimate client. This knowledge became extremely valuable in doing risk assessment. For example, PCH staff (including Casey) had personally visited the factories and had worked with the owners and the technology companies for months. This level of understanding far exceeded what could be accomplished by lending officers.This unique position enabled PCH to effectively play the trade finance role in the supply chain cycle. By 2008, Casey envisioned the ways in which PCH could play a broader role in the financial supply chain as it saw pain points in the retailer to factory relationship. In the past, U. S. retailers (customers of PCH) placed purchase orders (POs) with outsourcing factories in China. The U. S. retailers would then apply for a Letter of Credit (LC) with a bank that would provide the required financing to the factory. Once the orders had been manu factured, the factories would then ship the goods directly to the retailers.As the consumer electronics industry evolved, retailers were no longer willing to place large purchase orders, given the uncertainty of the market. In order to protect their margins and to minimize inventory costs, retailers changed payment terms on the factories. The factories were required to obtain financing on their own and would only be paid 90 days after the retailers received the products. This put a tremendous amount of pressure on the factories. PCH saw this as an opportunity for another value-added service.Casey envisioned that PCH could play the role of an intermediary to facilitate the financial flow from the moment the retailers placed their orders to the delivery of goods. The new model was such that retailers would place orders with PCH and PCH would then place the orders with the factories. Given PCH’s size and its relationship with global technology firms, banks would be willing to le nd funds to PCH. At the same time, PCH could then lend funds back to its factories and suppliers at a higher interest rate, but still lower than what the factories and suppliers would have gotten on their own.PCH effectively made the interest spread between the banks and the factories and suppliers. JOURNEY TO-DATE AND PATH GOING FORWARD Casey, the business adventurer from Ireland seemed to have demystified the often chaotic Chinese manufacturing landscape. Casey recalled the tremendous difficulty in initially setting up the business in 1996: I found companies in Ireland that were buying cables, connectors and audio accessories through British distributors†¦ who were actually sourcing them from Asia anyway.It took a long time to convince these Irish companies to go source directly from Asia because their perception was that you couldn't get quality or the right products in Asia, plus they were worried about dealing with the time difference. With only $20,000 in start-up capital and unable to afford staff, Casey worked alone for two years, getting to know factories in China, opportunities, and the business. Just ten years into the PCH International: Managing Goods, Information and Financial Flows GS-61 p. 12 ame, Casey disclosed that by 2007, PCH generated over $100 million in annual revenue, not a small feat for someone who still claimed to â€Å"not speak much Mandarin. † As the company grew into a much larger company since its start-up days, Casey believed one of the most important things to preserve in the company culture was the sense of urgency. In the initial years, he remembered that every single customer contract determined the survival of the company. â€Å"That sense of urgency, to get things done, to exceed customer expectation continued to stay in the company even after all these years.This sense of urgency was a trait of PCH—the speed and the can-do attitude,† said Casey. (See Exhibit 4 and 5 for revenue breakdown. ) A lo ng-time customer of PCH was Better Energy Systems (BES), the brand owner of Solio portable solar power. PCH had been managing BES’s end-to-end supply chain. â€Å"Put simply, PCH understands the business and quality requirements of the West, while at the same time can effectively manage the day to day complexities of a Chinese supply chain,† said Christopher Hornor, chief executive of BES. 1 While Casey believed PCH’s end-to-end solution provided a unique value proposition to technology companies, he also humbly admitted: â€Å"there’s nothing that would prevent our customers from going directly to the suppliers in the future. † In trying to chart out the growth plan for his company in the years to come, he was contemplating several options: expanding service options or obtaining strategic investors. Regardless of the growth strategy, Casey had always believed in â€Å"building PCH one client at a time. You do a good job, they give you more work,à ¢â‚¬  he said. It's all about service—making sure they get what they want, when they want it. â€Å"12 And such was the truism in operating any supply chain. 11 12 Clifford Coonan, â€Å"Understanding the Rules Is Key to Success in China,† Irish Times, September 25, 2006. Anna Healy Fenton, â€Å"Irish Rover Now Fluent in Solutions-Speak,† South China Morning Post, March 26, 2005. PCH International: Managing Goods, Information and Financial Flows GS-61 p. 13 Exhibit 1: PCH Integrated Supply Chain Approach Technol ogy Suppl y Chain Sol uti on V i rtual Supply Chai n †¢ Flow of inf ormation Physi cal Suppl y Chain †¢ Fl ow of productsFi nancial Supply Chai n †¢ Fl ow of f unds Source: Company Internal Information Exhibit 2: PCH Services Categories PCH International: Managing Goods, Information and Financial Flows GS-61 p. 14 Exhibit 3: PCH Information Portal Source: Company Internal Document Exhibit 4: Revenue Breakdown by Category 2005 49% 19% 13 % 10% 10% 2006 42% 32% 12% 6% 7% 2007 45% 29% 14% 5% 6% Electronics Telecom Medical PC Other Source: Company Internal Document Exhibit 5: Revenue Breakdown by Geography 2005 51% 23% 9% 17% 0% 2006 46% 26. 5% 0. 4% 27% 0. 1% 2007 48% 22% 3% 25% 1% USA Ireland Europe Asia Brazil Source: Company Internal Document