Purchase of a Franchise

Introduction Organizations and individual entrepreneurs continue to adopt more innovative approaches to business. Evidently, globalization and technological developments have played crucial roles in this business. Generally, these two factors have increased the rate of business processes. It is observable that brands have advanced beyond their domestic and regional markets (Schell 2011).Advertising We will write a custom essay sample on Purchase of a Franchise specifically for you for only $16.05 $11/page Learn More There is a notable platform for global business negotiation and franchise opportunities. There are several fundamental elements to be considered while establishing and conducting an international franchise. Strategies applicable in the management of complications associated with international franchise are eminent within all sectors of investment. Entrepreneurs interested in franchise business must take into consideration the crucial challeng es. Ideally, the basic objective is always to minimize the negative implications of franchise operations. Precaution and effective examination is vital for all parties interested in the global franchise business (Lorette 2013). This paper presents critical considerations to be undertaken during the establishment of a franchise investment. Additionally, it describes the process of assessment of the risks and returns associated with the business. There is a description of the laws providing special protections to the franchisee. The report also indicates vital analysis and recommendations to be adopted by the franchisees. Assessment of the Risk and Returns of the Franchise Investment The report focuses on investment in the franchise within the Canadian hospitality industry. For this segment of international franchise, the interested parties must consider a variety of factors. However, it is vital for them to examine the risks and returns linked with this global franchise initiative. C anada is strategically fit for the establishment of the franchise. Particularly, the country faces a huge influx of tourists and international travels (Herman 2013). This enables the hospitality industry to realize great revenues and profits. Therefore, it is the ideal destination for the establishment of this kind of investment. It is imperative to indicate that Canada has one of the greatest potential markets for the franchise sector. The nation borrows a lot of franchise strategies and ideas from the major U.S business industry. Those involved in the franchise industry must note that Canada has distinct features. These might have severe business implications. Such important characteristics include the unique regional and the demographic elements. These factors require adequate attention for the business to realize its targeted success.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Fran chising is a process in which the private businesspersons purchase the entitlements to establish and manage a site of a potential company (Arthur 2000). Regulatory concerns within Canada must be fully complied with during the process. The franchisor and the franchisee must be engaged in a legal contract. The contract must indicate and explain the terms and conditions in a comprehensive manner. There are a variety of advantages and disadvantages associated with the franchise business. These must be noted before the franchisee signs the legal business contract. The franchisee must note that the foremost procedure is to analyze and accent to the terms indicated within the contract. Failure to observe this consideration might lead to the experience of potential losses by the franchisee. The Canadian hospitality industry borrows certain regulations indicated in the â€Å"international franchise association† (IFA) charter. Nonetheless, other regulatory frameworks emanate from the s tatutory provisions in Canada (Arthur 2000). The franchisee interested in the Canadian hospitality is entitled to several benefits. They are likely to obtain adequate familiarity with the company’s name. In addition, the impact of the original company’s culture, brand and training may help in the development of a powerful franchise stature. These merits are vital for the successful running g the franchise business in Canada. The franchisee is likely to benefit from the bustling hospitality industry in different ways. The high level of revenue recorded from the tourist sector is set to minimize the probability of failure of the franchise. The explicit Canadian business and investment policies might also lead to a considerable level of business success. The parent company might be willing to extend its innovative practices to the franchise (Elgin 2002). These might include human resource training and apprenticeship. Employee welfare is one of the crucial elements of succ ess. It must be extended to the franchise organization.Advertising We will write a custom essay sample on Purchase of a Franchise specifically for you for only $16.05 $11/page Learn More Generally, provision of a support strategy to the franchise owner has positive implications on its overall performance. The franchisee must face the elementary risk of raising the rights required for operation of the franchise. There are additional costs required to develop the necessary enterprises and functional systems. This may also cover employee remuneration. The Canadian business laws must be complied with to the maximum level. These also include other necessities involving tax regulations and costs incurred during business licensing. The costs involving the authorization of the capacity to run and manage a franchise in the Canadian hospitality vary in a significant manner. The franchise entrepreneur may remain liable for other constant expenditures. These might have negative implications on the business. Indicatively, they differ in orientation, such as those linked to the royalties and use of the name or brand of the mother company. In the end, such identifiable on-going expenditures might deeply minimize the level of expected profits (Lorette 2013). Other potential precautions might increase the level of associated business risks. For instance, the Canadian franchise is still under refinement. Therefore, certain laws might predispose the franchisee to significant levels of risks. Certain regulations underlined within the franchise contracts appear very stringent and punitive to the business owners. The owners of the franchise must also comply with the contract. The aim is to reduce the likelihood of termination of the contract. Factors to Be Considered For a Franchise Investment There are diverse factors to be considered for a franchise investment in the Canadian hospitality industry. The franchisee must know that Canada has restrictions on trademarks. Canadian authorities only safeguard legally registered trademarks. The power to register such trademarks is only exercised by the federal government. The importation of franchise laws from the U.S must be avoided. Particularly, the franchisee must consider innovative techniques applicable within the hospitality industry. Regulations that advocate for individual franchises must be reviewed (Schell 2011). There are different franchise investment policies within distinct regions in Canada. These include the â€Å"grant master franchise and development agreements.† Observably, these franchise agreements remain unique for every province in Canada. Integration of the domestic businesspersons in the franchise process must be considered.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This is because it is a fundamental initiative that improves the level of engagement of local communities in the franchise process. It is also critical for the franchisee to adopt the â€Å"Canada oriented marketing.† This enables them to enhance the brand and extend the local market for the franchise (Herman 2013). This initiative shall help the franchise business to flourish within Canada. The â€Å"Canadian franchise association†, (CFA) plays a crucial role in the regulation and protection of the franchisees. Therefore, the franchisee must examine and be conversant with the regulatory measures in the CFA. Laws Giving Special Protections to the Franchisee The provincial disclosure provisions are evident in three of the major provinces in Canada. Ideally, this provision offers the franchisee a special kind of cushion and protection from exploitation by the mother organization. There are other provinces with necessary protective legislations for the franchisee. General ly, these regulations have different monitoring agencies throughout Canada (Herman 2013). Some of the regulatory frameworks indicated under the provincial disclosure in Ontario and Alberta are aligned with those of the U.S. This regulation subjects the franchisor to certain conditions that must be attained before any business contract is signed by the potential investors. For instance, all of the parties are required to make public all the material information regarding the deal. The â€Å"uniform franchise commission of Canada† is in the process of establishing a universal franchise law. Recommendations The franchisee must be aware of all legal requirements of the business within Canada. Additionally, it is vital to consider the refinement of these regulations. This shall help to enhance the development of a fully protective and regulatory authority. The hospitality sector is one of the leading franchise industries with approximately 40% records (Schell 2011). However, many precautionary measures must be exercised to ensure minimal losses. The franchisee must be keen to develop effective and transparent business partnerships. Comprehensive documentation and legal consultations are critical components of the franchise business. Stringent measures are appropriate in the practice of franchise business. It is also upon every investor to examine the franchise contracts before they accent to any conditions. Works Cited Arthur, A. Canada’s Hospitality Sector; Consolidation, Consolidation, Consolidation. 2000. Web. Elgin, J. Choosing a Legal Form for Your Franchise. 2002. Web. Herman, M. International Franchising. 2013. Web. Lorette, K. Definition of a Franchise Business. 2013. Web. Schell, C. Canadian Franchise Industry. 2011. Web. This essay on Purchase of a Franchise was written and submitted by user Maddox Chen to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Shanghai, a New Bubble in the World essays

Shanghai, a New Bubble in the World essays Which city is the hottest city in the world nowadays? Somebody will say New York, or somebody will say Tokyo; however, David Ignatius will tell you it should be Shanghai of China. According to the article Come See the Shanghai Bubble written by David Ignatius, The worlds other bubbles may have deflated, what with Europe and America sagging again, Japan still flat on its back and an anti-dollar contagion spreading. But here(Shanghai) in China, these worries seem far, far away. Although David thinks, The Shanghai bubble will eventually burst, as all bubble do, Shanghai is still very attractive for a lot of people. Overseas Chinese and foreign people from various countries are racing to join this gold rush. Nevertheless, there are some weaknesses in this city. The estimation by Economist two weeks ago showed us that 30 percent to 50 percent of Chinese loan might be insolvent; and even worse, its impossible to know. David considers that The only way China can keep the bubble growing is t o continue down the path of reform to make its economy more open, more transparent, better regulated, less corrupt. I agree with Davids standpoint about Shanghai Bubble. In addition, I believe with a good starting, absorbing some useful experience from other bubbles, and better management by Chinese government, Shanghai will have a better future and become a great bubble in the world. Shanghai is a city built by both western culture and Chinese government. Open the history book about Shanghai, we will see Shanghai used to be the foreign concession of some European countries. At the same time of they occupied Shanghai, they also developed this city. Although they could employ lower priced workers to make more money, they built many factories in the old Shanghai. In addition, they also brought some advanced technology and better education to this city. Even now, there still hav...

Impact of social media on the growth of the fashion industry in Dissertation

Impact of social media on the growth of the fashion industry in Nigeria - Dissertation Example This group of consumers prefers to use Facebook only (55%), and only 27% have Twitter account, while 18% of respondents use both social media tools. The results demonstrated that the local fashion brands have not as strong and effective marketing strategies in terms of social media usage. Also, the research has shown that 41% of respondents do always review social media pages of fashion brands for discounts, while 23% of respondents prefer to read reviews before shopping for clothes online or even before going to the fashion store. However, according to the study carried out by the researcher where he has been analyzing the level of activity of Nigerian and UK-based Nigerian fashion brands at social networking platforms such as Facebook and Twitter, it has been found out that the majority of 45 Nigerian fashion brands did not use full potential of the social media opportunities. The research has also shown that some of the Nigerian fashion brands in addition to Facebook and Twitter d o use other social media platforms to interact with their customers, followers, fans and subscribers. These sources included fashion brands blogs, Tumblr, Youtube, Pininterest, Instagram, Ijaw girl, and even LinkdIn. Based on the result of the findings, it was recommended that the Nigerian fashion brands and retailers ought to adopt experience of international fashion brands and focus their digital marketing strategy on the following key social media areas: personalized shopping experience, user-generated content, strategic use of discounts, focus on niche communities, and interaction through mobile applications. Key words: Social media, fashion industry, consumer behaviour, Nigeria Introduction â€Å"Fashion is a form of ugliness so intolerable that we have to alter it every six months† – this ironic and brave definition of fashion belongs to famous Oscar Wild. If seriously, Feldenkreis et al (2005) describe the basics of the fashion business as a set of activities, i ncluding: design and creation of a line; sampling process with drawing the design, picking materials, designing graphics, embroidery and other components if needed; preparation of the blueprint of the garment from size to all measurements; and demonstration of it to the fashion industry. Usually, this process takes one year after which new fashion models would be available for retail (Feldenkreis et al. 2005). However, with the increasing use of social media globally this process goes through the various changes and provides both fashion producers/distributors and fashion consumers with new opportunities. Various social networks, blogging, video blogging, podcasting - all are the social media tools used to empower and enable conversations digitally (Brogan, 2010). More detailed description of what the social media was described by Poynter (2010, p. 182), who listed such examples of it: blogging, micro-blogging (e.g. Twitter), social networking (e.g. Facebook, Mixi, Cyworld), Wikis ( e.g. Wickipedia, the collaborative encyclopedia), social bookmarking (e.g. Delicious and Digg), photosharing (e.g. Flickr), voice networking (e.g. Skype), video sharing (e.g. YouTube), music

Projct Essay Example | Topics and Well Written Essays - 1250 words

Projct - Essay Example For this reason, we included all the relevant information and graphical representations on how exactly a child should be looked after and given all the necessary counseling support. Obviously, the topic is a very interesting and sensitive one that concerns a large number of people in the society. However, to be precise, we narrowed down on counseling therapists as our professional and parents. Having specialized on counseling psychology, it is these therapists who have a deeper understanding of young children and how they can be effectively brought up without interfering with their physical, physiological, emotional and mental growth. On the other hand, the topic will be targeting the parents and guardians as non-experts. Although they spend a lot of time interacting with children, the parents and guardians are not trained on child counseling (Winnicott 49). Despite spending their energies to bring up the children under their care, they might still not be in a better position of having a deeper understanding of the children’s emotional challenges. Thus, they might not be of much help when it comes to offering counseling services to such children. The information provided here is very important to all the audiences. To the professional therapists, it challenges them that every child has got a potential of thriving regardless of the situation. Meaning, they are the future of the society whose welfare should not be ignored at all. By providing them with all the necessary therapy support, all the children will be relieved from their traumatic experiences and feelings. Therefore, the information challenges the therapists to acknowledge that it is only through proper counseling services that a distressed child’s life can be restored and put back to a balance. Therefore, having known that fact, the therapists will have to dedicate their time and deliver their best services to the children who might be in a dire need

50 First Dates Essay Example for Free

50 First Dates Essay The movie 50 First Dates is a romantic comedy film directed by Peter Segal. The movie is a notion of a day that keeps repeating itself. However, in this movie the recycling takes place entirely inside the mind of Lucy Whitmore played by Drew Barrymore. Barrymore plays a young woman who was in an accident that caused her to suffer from Goldfield Syndrome, a fictional form of anterograde amnesia in which each day’s events disappear from her memory overnight. This is caused by damage to the hippocampus, inside the temporal lobe, as the hippocampus controls memory functions. Furthermore,she also innocently believes every day to be the birthday of her father which happens to be the day of the accident. In order to shield her from the pain of repeatedly learning about the accident, Marlin and Lucy’s brother, re-enact the activities of Marlin’s birthday every day. The character Oola is a friend of Sandler, whom helps come up with clever ideas to help Lucy fall in love with Henry everyday. Oola is affecting his neurotransmitters by the daily use of marijuana. Marijuana works as an agonist, in this movie. Adam Sandler, a womanizing marine life veterinian whom cares for animals in an aquatic amusement park has too many sexual conquests until he realizes that he is falling in love with Lucy. Sandler, sheds his philandering ways and devises new ways to meet her again every day, hoping that one day she will retain her memories and feelings for him. He eventually convinces Marlin that hiding the truth from Lucy is worse than explaining it to her each day, so they begin to leave video tapes for her to watch each morning, explaining her situation and her relationship with Henry. Lucy also writes notes to herself in a diary. Over time, she begins to reciprocate Henry’s feelings, even accepting his marriage proposal. Lucy is surrounded by a great deal of support and love throughout her dilemma. Lucy also receives deception from her brother and father and the basically the whole town because they protect her from knowing the truth. Personal Reflection: The results of this movie provide evidence that people suffer with anterograde amnesia which can effectively evaluate aspects of their quality of life and that the quality of communication life style. This movie also provides evidence that people with Amnesia also refers to an inability to recall information that is stored in memory. The causes of amnesia may be organic or functional. Organic causes may include brain damage through injury, or the use of specific drugs but usually sedative drugs. Amnesia may be one of the symptoms of some degenerative brain diseases, such as Alzheimer’s disease. Functional causes are psychological factors, such as defense mechanisms. People with amnesia also find it hard to imagine the future, because our constructions of future scenarios are closely linked to our recollections of past experiences. Researchers from Washington University in St. Louis used advanced brain imaging techniques to show that remembering the past and envisioning the future may go hand in hand with each process sparking strikingly similar patterns of activity within precisely the same broad network of brain regions. Fortunately, in the majority of cases amnesia resolves itself without treatment. However, if an underlying physical or mental disorder is present, it should be treated. Psychotherapy may sometimes be effective for some patients. Hypnosis can be an effective way of recalling memories that have been forgotten. Family support is crucial in helping a patient with amnesia get better. Psychologists and psychiatrists say that reality orientation aids may help to nudge patients back into their environment if they are surrounded with familiar objects, photographs, smells, and sounds. Personal Implications: In 50 First dates, it was designed to tell the story of Lucy a woman whom suffers from a severe memory loss and can not remembered anything that is happening but remembers the past. Goldfield’s syndrome is a fictive name for a specific form of Anterograde amnesia used in the romantic comedy. The condition causes Lucy to lose of all her memories of the day, save the memories prior to the accident, due to that she is unable to convert her short-term memories to her long-term memories during her sleep. This results in her waking up every day believing it is the day of the accident, October 13, 2002. So, while the name is fiction, it is based upon a real condition. The neurological condition that Lucy suffers from, Goldfield Syndrome, is entirely fictional. True anterograde amnesia affects either short-term memory, which can last minutes or seconds, or intermediate-term memory, which can last days or weeks. Although, falling asleep has nothing to do with the condition, and sleep actually intensifies many chemical effects which help memory.

The Portraiture of Women During the Renaissance Essay -- Portraiture o

This essay will discuss how women were represented in the portraiture during the Renaissance period. It will explain how the women’s body was pictured in portraiture as; marriage celebrant, husbands beloved, figures of fertility, mothers, display of wealth, paragons of virtues, husband’s passive representative, indication of fashion and more (Brown, 2003). Next, it will include analysis from the two female portraits of Leonardo de Vinci’s Ginerva de’ Benci and Sandro Botticelli’s Portrait of a Lady. First, I will explain what portrait means and then represent my own interpretation of Botticelli’s Portrait of a Lady by referring to instructional â€Å"activity dialog† that details how to analyse the body’s subject in the portrait (Mckennee et al., 1994). Second, I will discuss how the Renaissance ideal perception of the women’s body image was influenced by philosophy of humanism, religious saintly virtues and the poets ’ understandings (Haughton, 2004). In short, I will explain how the radical change occurred in the woman’s portraiture in late fifteen-centuries where the traditional profile view was no longer popular and straight frontal presentation was fully practised. To exemplify this transformation, the painting of Leonardo’s Ginerva de’ Benci will be employed as means of analysis as Leonardo was instrumental in this fundamental change in the women’s portraiture (Garrard, 2006). Overall, it is quite astonishing how much constructive interpretation can be derived from one single portrait and these expressions will help me to expand my language and writing skill. I think practising the portrait activity-dialog between the viewer and the portrait’s subject expands the mind to be more creative which in turn initiates the development... ...ty in Renaissance art. Journal of Cosmetic Dermatology, 3(4), 229-233. doi: 10.1111/j.1473-2310.2004.00142.x Gromling, A. & Lingesleben,T. (1998). Botticelli 1444/45-1510 [Translation from the German; Fiona Hulse] (1st ed.).Koln, Germany: Neue Stalling, Oldenburg. Long, J.C., (2008). Botticelli’s Birth of Venus as wedding painting. Aurora, The Journal of the History of Art, 9, p.1. ISSN 1527-652X. McKennee, A., Malone, L., Hazelroth, S., & Kinney, B. (1994). Instructional resources: What is represented in a portrait? Art Education, 47(6), 25-32. Retrieved from http://www.jstor.org/stable/3193462. Morrison, B. (2004, June 12). Portraits. The Guardian, p. 16. Weinberg, G. S., (Jan, 2004). D. G. Rossetti's Ownership of Botticelli's 'Smeralda Brandini.' The Burlington Magazine, 146, No. 1210, pp.20-26. Retrieved from: http://www.jstor.org/stable/20073357 The Portraiture of Women During the Renaissance Essay -- Portraiture o This essay will discuss how women were represented in the portraiture during the Renaissance period. It will explain how the women’s body was pictured in portraiture as; marriage celebrant, husbands beloved, figures of fertility, mothers, display of wealth, paragons of virtues, husband’s passive representative, indication of fashion and more (Brown, 2003). Next, it will include analysis from the two female portraits of Leonardo de Vinci’s Ginerva de’ Benci and Sandro Botticelli’s Portrait of a Lady. First, I will explain what portrait means and then represent my own interpretation of Botticelli’s Portrait of a Lady by referring to instructional â€Å"activity dialog† that details how to analyse the body’s subject in the portrait (Mckennee et al., 1994). Second, I will discuss how the Renaissance ideal perception of the women’s body image was influenced by philosophy of humanism, religious saintly virtues and the poets ’ understandings (Haughton, 2004). In short, I will explain how the radical change occurred in the woman’s portraiture in late fifteen-centuries where the traditional profile view was no longer popular and straight frontal presentation was fully practised. To exemplify this transformation, the painting of Leonardo’s Ginerva de’ Benci will be employed as means of analysis as Leonardo was instrumental in this fundamental change in the women’s portraiture (Garrard, 2006). Overall, it is quite astonishing how much constructive interpretation can be derived from one single portrait and these expressions will help me to expand my language and writing skill. I think practising the portrait activity-dialog between the viewer and the portrait’s subject expands the mind to be more creative which in turn initiates the development... ...ty in Renaissance art. Journal of Cosmetic Dermatology, 3(4), 229-233. doi: 10.1111/j.1473-2310.2004.00142.x Gromling, A. & Lingesleben,T. (1998). Botticelli 1444/45-1510 [Translation from the German; Fiona Hulse] (1st ed.).Koln, Germany: Neue Stalling, Oldenburg. Long, J.C., (2008). Botticelli’s Birth of Venus as wedding painting. Aurora, The Journal of the History of Art, 9, p.1. ISSN 1527-652X. McKennee, A., Malone, L., Hazelroth, S., & Kinney, B. (1994). Instructional resources: What is represented in a portrait? Art Education, 47(6), 25-32. Retrieved from http://www.jstor.org/stable/3193462. Morrison, B. (2004, June 12). Portraits. The Guardian, p. 16. Weinberg, G. S., (Jan, 2004). D. G. Rossetti's Ownership of Botticelli's 'Smeralda Brandini.' The Burlington Magazine, 146, No. 1210, pp.20-26. Retrieved from: http://www.jstor.org/stable/20073357

Course Notes

Can organic farmers produce enough food to feed the world? Discuss this question commenting on the place of organic farming in sustainable food systems In order for organic farming to produce enough food for the world In a sustainable system, Limiting factors to production In the organic system need to be overcome. Through yields outputs to primarily disease control and fertilizers, this method of farming could solve global hunger and world starvation, giving us aOn the other hand, conventional agricultural production systems are not necessarily sustainable-perhaps we need a compromise. Continual cropping and grazing, together with over use of herbicides, Insecticides and fertilizers are Inarguably damaging to the environment and the web of life. There has often been a proposal that Northern Australia could become the food bowl of Australia. The argument against this Is often that disease and pest control In the Northern climates is a major Limiting factor to production.Extrapolating this to a world situation, I don't believe organic farming on a world scale could achieve the production levels required to feed the escalating population. Without conventional inputs, which are not always organically friendly, I cannot see adequate production to feed the world. Perhaps in to the future this can be achieved. As dad just pointed out-in the North of Australia, and this would be in other matching arid countries of the world, animal production, is relatively easily to be organically certified because they don't need to use drench, fertilizers etc-only some feed supplements which could be organic.The problem areas are the more tropical areas where disease and pest control are more difficult in an organic plant production system. -produce food of optimum quality and quantity using sustainable farming practices -produced in over 130 countries -represent fastest growing food sector worldwide -market analyst forecast annual growth rates between 10-30% around the world -basi s is -healthy, biologically active soil -enhance and maintain Course Notes The focus of Case 4 is how poor communication can effect an organization. Communication is essential to the survival of any organization. A lack of effective communication will result in little to no coordination and cooperation, resulting in decreased performance. In assessing Strayhorn’s communication effectiveness, one can see the negative impacts EI experienced because of his approach. Two of the biggest factors dampened by his style were morale and productivity. In addition, failure to address rumors circulating in the grapevine increased anxiety, stress, and crises among employees.With EI’s contract with Ocean Point coming to an end, the big question for EI employees was whether or not the contract would be renewed. Mr. Strayhorn failed to directly address the situation. It seems as though Strayhorn was more concerned with saving-face than the needs of his employees. One can then reason employees developed mistrust in management because of their lack of informatio n. This in turn caused many employees to develop personal barriers in the form of psychological distance. The lack of proper open and downward communication led employees to utilize the grapevine.From the case, one can easily see the grapevine was a product of the situation EI faced. One can also reason the desire for information and insecurity were additional factors that encouraged employees to become part of the grapevine. Unfortunately in this case rumors began to circulate through the grapevine. Since each employee possessed interest and ambiguity with the situation, it is easy to see why rumors formed. Consequently the accepted rumor was Ocean Point would not renew EI’s contract and EI employees would not be eligible for hire with Ocean Point.Although this was not factual, the rumor caused dramatic increases in stress, anxiety, and crises among EI employees. In addition, Strayhorn failed to recognize how the rumors would affect organizational culture. The uncertainty in the situation caused the organizational culture to become unstable. Since the causes of the rumors were not removed, Strayhorn should have addressed employees with a face-to-face to attempt to control the rumors. However, Strayhorn’s lack of action suggests he had little concern with restoring social equilibrium.By failing to effectively communicate, provide insufficient information, control rumors, and restore social equilibrium, Strayhorn caused employee morale and productivity to dramatically decrease. Evidence of these dysfunctional effects can be seen through the fact that potential sales were reaching their peak while actual sales were declining. If Strayhorn would have openly communicated EI’s problems and disclosed management’s efforts to get the contract renewed, he would have also conveyed his concern for employee needs.The employees would have most likely responded positively because the elements of trust would still be present. However, as this was not the case Strayhorn should have realized EI’s environment had changed and adapted his results-oriented approach accordingly. In this situation the system model would have been appropriate for a few reasons. First the basis of the system model is trust and community. Although failing to communicate developed mistrust, by showing sincere care and compassion for each employee Strayhorn could have reestablished trust.Secondly, this model could have allowed positive organizational behavior to grow, which would in turn have boosted morale. In conjunction with the system model, Strayhorn could have strived to achieve a fun work environment to aide in combating the stress stemming from uncertainty. By combining these methods and theories, EI could have increased actual sales and its chances of contract renewal. However, because of their lack of profitability Ocean Point may now be unwilling to do so.