Howard Schultzs strategy in founding Starbucks was a blue ocean strategy because the Italian coffee bar concept was unknown at the time in the American market. Therefore by importing the concept, Howard Schultz created a new segment of the market. Howard Schultzs approach was to create a positioning strategy based on creating associations with quality, service and community. Providing a comfortable, appealing store experience was the unique selling proposition behind the Starbucks brand. This was a brand new concept because no other store at this time was creating an organizational culture based on drinking coffee. This was a big step away from the existing market environment in which coffee was being treated as produce.

Starbucks UK strategic position
Luxury brands are defined as those brands sales of which rise more than proportionally with rise in incomes. The challenges of marketing luxury brands are illustrated by the marketing strategies applied in the case of Starbucks UK (cited in Aaker, 2004). The perceived value of a product is defined by the customers perception of the level of utility to be gained from purchasing that product (cited in Baldwin  Curley, 2008). For example, when the customer purchases Starbucks UK coffee, he is perceived to have purchased a status symbol associated with a particular lifestyle (cited in Hill  Jones, 2007). This is in contrast with purchasing from one of the smaller coffee chains in which case the purchase is associated with a more functional value. Starbucks UK has a higher perceived value because it has a higher price and thus it creates a special image based on famous associations. All segmentation criteria such as activities, interests, opinions, attitudes and values would differ based on whether the product being marketed is the Starbucks brand or one of its smalls-scale coffee chain competitors. In this case Starbucks UK is the luxury brand. 
Porters Generic strategies Model

According to Michael Porters framework for strategy formulation, a business organization has three strategies at its disposal differentiation, cost minimization and niche marketing (cited in Besterfield, 2002). Marketers of luxury products cannot implement the strategy of cost minimization because the perceived value of luxury products comes from premium pricing (cited in Evans, 2007). Therefore they are implementing a mixture of the strategies of differentiation and niche marketing. These are the strategies that can be found in the marketing framework at Starbucks UK operating in the specialty coffee industry. For this reason it can be regarded as a luxury brand. The luxury status of Starbucks UK comes from its positioning strategies which have marketed the brand as a status symbol.

The success of the Starbucks brand in UK was based on the value proposition of creating a unique experience for the customers in drinking specialty-brand coffee (cited in Jannarone, 2009). As a result, the important component of the companys positioning strategy was not just the product but also service and the ambience inside the stores. This was an important source of Starbucks competitive advantage because the company competed not only against small-scale specialty coffee chains but also against independent specialty coffee chains (cited in Jargon, 2009). Therefore it was critical for the management at Starbucks UK to create a unique selling proposition which would attract customers away particularly from the independents which enjoyed the advantage of a highly diversified product range. This diversification would enable the independents to experiment with prices which would create tremendous pressure on Starbucks (cited in Marits, 2004). Therefore it was important for Starbucks UK to differentiate itself based on service and atmospheric attributes which would generate an extra appeal and push price considerations to the back (cited in Jargon, 2009). Based on these characteristics Starbucks can be regarded as a luxury brand.

Bowmans Strategy Clock Model
In order to re-invigorate the Starbucks brand, the management embarked upon the strategy of product and service innovation (cited in Jargon, 2009). This strategic action is related to maintaining a continuous improvement process in terms of product and service innovations in order to meet the changing demands as a result of changing customer demographics (cited in Armstrong, 2005). In order to ensure that the continuous improvement process is strategically aligned, the management implements the benchmarking process (cited in Carpinetti  Melo, 2008). 
     
Starbucks UKs new strategic actions are more keyed to differentiating features based on service innovation (cited in Jannarone, 2009). The strategic action of service innovation has been effective because the process has been facilitated with high involvement of the employees which has created high employee morale, something that the management had stressed repeatedly. In this respect, the broadening of in-store product offerings such as coffee-flavoured ice cream, Frappuccino, teas, fresh pastries and other food items, candy, juice drinks, CDs, coffee mugs, and coffee accessories, has already proved to be a great success.

In order to attain the objective above Starbucks has been implementing the strategy of maintaining consistency and quality through product diversification in the form of a greater variety of beverages. This strategic action has been the one for the company to leverage on in building brand awareness as a luxury product. There have been out-of-store sales such as the sale of ground coffee and coffee beans in UK grocery stores. Starbucks has also formed strategic alliances with PepsiCo and Dreyers Grand Ice Cream. Through PepsiCo it has been selling Frappuccino in UK grocery and convenience stores while through Dreyers Ice Cream it has been selling coffee-flavoured ice creams in grocery stores. These are the strategic actions of product differentiation. The strategies of service differentiation have been mentioned. They have been guided by the employees thus enabling them to maintain their quality of service while offering greater differentiation in products and services. As a result the management has set the strategy of compensating for the failed store expansion strategy by offering a greater variety of products and more unique Starbucks experience (cited in Jargon, 2009).

External drivers affecting Starbucks UK
In 2008 Starbucks had 11,000 stores in the US and 217 stores in UK (cited in Jannarone, 2009). Since 2000, the companys sales of ready-to-drink coffee, coffee beans, coffee-flavoured products, pastries, and coffee accessories had grown by more than 20 percent annually to reach 9.4 billion in 2007in UK. Starbucks UKs net earnings had increased from 95 million in 2000 to 672 million in 2007 (cited in Jargon, 2009). However in early 2008 it was announced that several of the new stores that had been opened were underperforming and therefore they would be closed (cited in Jannarone, 2009).   

PESTEFL Model   
Political The Fairtrade Foundation UK and UK Governments Department for International Development are significantly involved. The collaboration between Starbucks and Fairtrade organizations will have a significant impact on the companys operations in terms of the demand for Fairtrade products. Maintaining positive relations with the local government officials is the critical success factor in the political spectrum.   
   
Economic Starbucks plight in 2008 illustrates the risks and threats inherent in marketing a luxury product. As a result of the recession, the management was forced to announce the closures of 60 stores in the UK. In terms of pricing, coffee products are price inelastic. However in case of large price variations, the level of consumption is affected. There is also the occurrence of cannibalization in the case of the closely located stores.      
   
Socio-cultural Demographic changes have affected the demand patterns. Traditionally the market for coffee consumption had consisted of affluent, older age groups. However the age composition was changing as younger consumers were also taking their coffees from specialty coffee chains. Traditionally the younger segments had been visiting the independent specialty stores. Now they were switching to Starbucks.  
Environmental environmental issues are related to the political spectrum in terms of maintaining positive relations with the government agencies. The purchasing of Fairtrade certified coffees is an example. This is an environmental issue in terms of setting minimum price guarantees for the coffee farmers. The coffee is sourced from international locations and therefore Starbucks and other companies in the industry must undertake environmental programs to support the farming communities in the international regions. These environmental issues will affect the procurement of the coffee as the production quality will be maintained.     
Technological technological development is related to improving the customer service. In this respect the automated technology is a relevant consideration as it will enable Starbucks employees to enhance their productivity in terms of the number of customers that they can provide service to. The knowledge management system is also a relevant technological consideration as it facilitates the maintaining of product and service innovation in alignment with changing market dynamics.    

Educational Because the procurement for coffee manufacturing is conducted internationally, educational programs for the farming communities in the sourcing regions are strategic realities. The educational programs enable the coffee farmers to maintain the high level of quality in growing coffee. Health and education initiatives to improve their living standards will enhance the effectiveness of the coffee manufacturing value chain.
Political

-  The Fairtrade Foundation UK and UK Governments Department for International Development
- Government position on local laws, regulations and codes.
- Maintaining good relations with the local government officialsEconomic

- Nature and direction of the economy
- Price elasticity
-Disposable Income within market segments.
- Cannibalization affecting sales
SocioCultural

- Changing age composition of the target market.
- Consumer demographics changing more in favour of the younger segment
- Training and development of the employees to improve customer service.Technological

- Product and service innovation
- Knowledge management
- Improvement of customer service through automationEnvironmental

- Programs dedicated to promoting corporate social responsibility
- High community involvement through charitable organizations and other initiatives such as purchasing Fair Trade certified coffees. Educational

- Educational programs undertaken by the manufacturing companies enhance productivity in the coffee growing regions. 
- Health and education initiatives are undertaken to improve the living standards of the farming community Legal
- Wage and hour rules
-  Workplace health, safety and security.
- International business.
- Import laws

Legal laws and regulations relating to wage and hour rules, workplace health, safety and security and international business. Because the coffee is sourced from international regions, any changes in import laws will also affect the companys operations.

Porters five forces
Starbucks UK has built up its market leadership position through a high level of industry differentiation which has been facilitated through maintaining high control over the distribution structure. This decreases the threat of new entrants as new entrants will not be able to match its structural strength. Starbucks plight in 2008 illustrates the risks and threats inherent in marketing a luxury product. However luxury brands tend to fare better than mass market products because its demand is catered to a niche segment in which price considerations are not relevant Therefore any income disparities likely to arise from the economic hardship would not affect the luxury brand. The success of luxury brands is dependent on premium quality, exclusivity and rarity. New entrants will not be able to match the brand equity. 

There is a high level of competitive rivalry stemming from Dunkin, McDonalds and Nestle. There was also a high level of cannibalization.  Luxury brands are not dependent on economic hardships. This was not the case with Starbucks as illustrated from its underperforming stores in 2008. As a result, the management was forced to announce the closures of 60 stores in the UK, 70 of which had been opened in 2006. According to the product life cycle theory of luxury brands, this should not have happened during the economic hardship of 2008 (cited in Jargon, 2009). However Starbucks strategy had backfired from over-expansion and as a result, new outlets were cannibalizing sales away from the existing sales.

As mentioned before, Starbucks maintains high control over its distribution structure world-wide. This objective has been met through creating long-term fixed price contracts with the suppliers. For this reason suppliers do not have that much bargaining power.        

There are also substitutes available such as soft drinks, tea and beer. This will be affected by the economic factors as during economic slow-down, buyers might switch to these substitutes. 
Buyers have high bargaining power as there are no switching costs. Moreover, buyers can brew their own coffees at home.       

Starbucks UKs value
Employees have been involved in the process of differentiation. This has enhanced employee morale. In this manner the management has created human capital which is its main resource strength (cited in Armstrong, 2005). The management has leveraged upon this strength in order to enhance its customer-friendly brand awareness. As a result the competitive capabilities of a growing power of Starbucks name and brand image have been developed.

Resources, competences and competitive advantage Model 
Competitors have not been able to copy Starbucks UKs strategy because Starbucks UKs organizational culture is strategically aligned to providing customer satisfaction (cited in Marits, 2004). This alignment has been maintained through a continuing process of differentiation. Therefore it can be said that Starbucks UKs strategy to re-invigorate sales has been a mixture of differentiation and developing sustainable competitive capabilities.  

Starbucks UKs new strategy has evolved well as illustrated by the fact that its brand awareness is the highest in the industry (cited in Bank, 1993). Additionally the company has ensured customer satisfaction with greater investment in corporate social responsibility (cited in Marits, 2004). Starbucks strategy of sponsoring programs of corporate responsibility and environmental sustainability has been the critical success factor in this respect. These expenditures have been taken from marketing because they serve to enhance brand awareness (cited in Hill  Jones, 2007).

The central element of Starbucks sustainable business development has been the combination of customer relationship management and employee morale (cited in Dess, 2007). This has facilitated the development of core competences which enabled the company to post great success and dramatic growth (cited in Jannarone, 2009). Starbucks is the leading specialty-coffee brand in the UK. Therefore the strategic focus of marketing is on maintaining quality rather than on price. That has been the central strategy in marketing the luxury brand. This necessitates the company to implement tight integration in supply chain management. Maintaining the quality constitutes the first component of Starbucks branding strategy and therefore the basis of its competitive advantage.

The company also controlled distribution to retail outlets throughout the UK. This close integration in the supply chain enabled the company to ensure that the various blends and single-origin coffees that constitute the companys product line were sourced from the

best possible locations (cited in Jargon, 2009). This maximized cost-effectiveness in supply chain and also ensured satisfaction on the part of the channel members (cited in Jargon, 2009). Therefore the distribution structure was one of the most important resources. 
Starbucks UKs Value Chain Analysis Model

Support activities
HRM Starbucks invests continuously in staff training in order to provide a high level of personalization in customer service. Trained employees are also qualified to be involved in the decision making process.
Technology developments In order to shorten the time in which each customers order can be processed, the company has automated the process in which the drinks can be mixed. This reduces the waiting line of customers. As a result, the critical success factor is to maintain continuous technology developments for service innovation.

Procurement The coffee is sourced from suppliers in Africa, Central and South America, and Asia-Pacific regions (cited in Marits, 2004). In order to maintain coffee standards, Starbucks works directly with growers in their countries of origin in order to supervise a custom-roasting process as well as the purchasing of green coffee beans (cited in Marits, 2004).

Primary activities
In-bound logistics  the automated information system for manufacturing enables the management to maintain close integration with the suppliers so that efficiency in the production process can be maximized.

Operations the company maintains sophisticated systems for manufacturing scheduling and inventory management. As a result Starbucks UK does not outsource any of its operations.
Outbound logistics Starbucks UK has developed a high level of control over distribution planning through vertical integration. It has integrated backwards in opening coffee roasting plants and forward in terms of controlling the distribution of its products (cited in Jargon, 2009).
Marketingsales Starbucks main marketing strategy is personalization of service (www.starbucks.co.uk). As a result, it has relied less on advertising media. 

Sustainability of Starbucks UKs strategic position
The challenges of marketing luxury brands are illustrated by the marketing strategies applied in the case of Starbucks, the leading specialty coffee brand in the UK. The strategies in marketing luxury goods illustrate the importance of incorporating the factor of perceived value. Marketers of luxury products cannot implement the strategy of cost minimization because the perceived value of luxury products comes from premium pricing. The luxury status of Starbucks comes from its positioning strategies which have marketed the brand as a status symbol. The success of the Starbucks brand in the UK was based on the value proposition of creating a unique experience for the customers in drinking specialty-brand coffee. Starbucks UKs plight in 2008 illustrates the risks and threats inherent in marketing a luxury product. In order to re-invigorate the Starbucks brand, the management embarked upon the strategy of product and service innovation. The company targets a wide variety of market segments.

The objective has been to enhance the company brand image as a luxury product. This strategy has been the one for the company to leverage on in building brand awareness as a luxury product. The strategies of service differentiation have been mentioned. As a result the management has set the strategy of compensating for the failed store expansion strategy by offering a greater variety of products and more unique Starbucks experience

ETHICAL VIEW OF SHAREHOLDERS

Different groups of stakeholders are interested in the information presented by businesses in their financial reports. Their information needs vary and it is important that the managers of the company who are acting on behalf of stakeholders perform their responsibilities ethically and ensure that they manage stakeholders relationship based upon integrity. The purpose of business ethics is to ensure that managers abide by the code of conduct which in a way enhances stakeholders trust and confidence in the business. 

This also implies that the company undertakes necessary steps to address issues related to different groups of stakeholders and also make sufficient disclosure in the financial report. Fairness in dealing with issues pertaining to each group is required which suggests that the balance between interests of different stakeholders should be maintained and no single group should be given more importance. Upon examination of the annual report of Woolworth Holdings Limited it could be suggested that the company has set out its code of conduct clearly to ensure that its relationships with stakeholders are well managed (WHL 2009).

Users of financial information are particularly interested in the information disclosed by companies related to the management of their relationship with different stakeholders. The stakeholders of Woolworth Holding Ltd. could be identified as suppliers, government, media and the public (WHL 2006). Ethical considerations concerning these stakeholders may include management of suppliers contracts, the extent of compliance to regulatory standards and policies, the quality of information provided to media and the overall corporate social responsibility of the business to the environment in which it operates. Woolworth has clearly set out in its annual report that it aims to act responsibly to its different stakeholders and it has made sufficient disclosure in its financial report and supporting documents on corporate governance and CSR.    

Topic Are German Banks Riskier than European Banks

Banking risk is basically the probability of the occurrence of an unexpected contingency that has the possibility of creating an uncontrolled cashflow.  It is important to understand the fact that there exist a clear difference between banking risks and banking uncertainties. While risks are directly attributed to the a business cycle or general company failures, uncertainties are factors that are beyond the control of the banking institutions and may include global financial crises, political instability and calamities. Risks are there therefore directly a management issue that a bank should have in place strong measures to curb their possible occurrence (Lecture 4).
   
The main types of risks that banks face in their everyday operation are quite diverse and may include but not limited credit risks normally involving debtors who fail to meet their contractual obligations, market risks that are associated with price fluctuations, liquidity risks in the event that the assets fail to recover their costs when put up for sale, and interest rate risks that results from sudden changes in exchange rates. Other forms of banking risks include possibilities of banking frauds, operational risks and the possible loss of reputation (Lecture 4).   

The banking sector in Germany faces credit related risks that has been the biggest concern not only amongst the industry players but also within the political and labor circles. This very high credit risk has seen high rates of contraction of the gross domestic product with subsequent results of massive layoffs. European banks are equally exposed credit risks especially in the Eastern Europe and Spain. This situation has forced major European banks to write off bad debts totaling to nearly 100 billion pounds. Though the risk factor is not so sudden with the European banks, it is nonetheless clear that real banking risks do exist and may actually result in very huge financial losses (Evans-Pritchard 2010).

Review of relevant literature and theory
It is generally agreed that banking risks are real both in Germany and in Europe. While several risks may be facing the banking sector of the two study countries some which may be similar while others are country specific, it is clear from this analysis that credit risk remain the single biggest challenge to banks both in Germany as well as in Europe. The case with most European banks may not be so pronounced as compared to the cases of Germany. This is attributed to the very high rates at which the banks write off the bad debts. The main risks that are associated with the European banks are related to credit risks with the banks in which the government has stakes mostly affected (Harrison 2009).

The risk situation in Germanys banking sector continues to face more intense credit risks specifically compounded by the poor global economy and unstable financial markets. According to the Central Bank reports, German banks risk facing bigger debt write-offs unless they significantly increase their capital. According to the Deutsche Bundesbank, most of the Germans banks will most probably face billions of losses on security products unless the global economy and the financial markets make a significant recovery.
This situation has compelled the government to come up with rescue strategies aimed at reviving the nearly collapsing banking sector that would see investors loose billions of money. However, the governments possible rescue is dependent on the approval of the European Union regulators. The regulators are however not in full support of the excessive state aid to the banking sector. The Commission holds to the view that banks should instead focus on strengthening their capital bases by giving fresh guarantees to the existing shareholders (Smith 2009).

The main solution to the German banking risks is seen to lie in possible future write-offs until such a time that there would be substantial recovery in the global financial markets and the entire world economy. The banking sector and especially the smaller banks remain significantly vulnerable to interest rate risks especially the upward turn in interest rates. The responsibility of reducing the major banking risks in Germany is seen to lie in the ability of the European Central Banks to develop strategies for exiting stimulus policies. The long-term consequences of the banking risk crisis according to Bundesbank may result into prolonged periods of low interest rates that is likely to impact on other strategic sectors like the insurance industry whose ability to meet future obligations may be greatly threatened (Smith 2009).

Though the banking risks in Germany have for a long time remained a big concern, experts are for the opinion that the problem has mostly been compounded by lack of transparence and failure to disclose financial details. However the risks seem to be less harmful than they are actually feared with the signs of stability both in credit and liquidity. The possibility of the market turbulence and a stronger euro to spring up economic growth will significantly reduce the risks of the banks in Germany (Landler 2007).

The most prudent solution to the risks that are associated with German banks will however lie with the ability of the European Central Bank to stabilize the interest rates, and for the affected banks to write off their leveraged loan portfolio on the value of assets as well as the mortgage backed securities (Landler 2007).
The credit risk has equally been a toxic issue for the European banks as well. Indeed the global banks have been compelled to write-off nearly half of their bad debts especially in the Eastern Europe which remain to be seen as a subprime debacle. The corporate debts in Europe have significantly risen to nearly 94 per cent of the Gross Domestic Product, and the default cases continue to be on the increase (Evans-Pritchard and Bruno 2009).

The European case may even be made more complex in the event that countries start competing with each other on the rescue programs for their banks and end up diverting state aid. This would have the effect of a bloated budget deficit which at present is almost hitting a 13 percent figure of the Gross Domestic Product. While government support to ailing banks is important, it should not be carried out on a scale that raises concerns about financing problems (Evans-Pritchard and Bruno 2009).

While Europe in general might seem much safer from bank related risks, western backs that have for a long time done well in Eastern Europe are currently facing a difficult time given the fact that the major European economies are currently in recession and most of their large banks have cut down on lending both at home and abroad. As a result, the Western banks are faced with the possibility o increasing nonperforming loans and will need to seek recapitalization. This problem has further been compounded by the fact that the institutional investors in the Western Europe mainly banks and insurance companies have big shares in the East European Debts. This means that the Eastern banks cannot get capital infusion from the Western governments that are already straining to pay stimulus packages for their own social safety nets (Schwartz 2009). 

The risks that are associated with the banking sector remain real both in Germany and in Europe. Though the magnitude of risk may vary from one country to country and from bank to bank, the common feature according to this analysis remains the credit risk that cuts across the entire banking sector world wide. This has made policy makers to recommend that a close specific bank diagnosis. It is however clear that failure to address this problem may only compound the crisis. While aiding of the ailing banks has for long been the most preferred approach, it is important that the market place and its dynamics play a leading role in differentiating the banks and allow those that are sound enough to continue their operations without key changes while the unsustainable banks are significantly restructured (Posen and Veron 2009).

Methodology and Data
In a study the methodology section is one of the crucial areas to be tackled. This is due to the fact that it forms the basis of the results of study findings. A study can be faced with big challenges due to a wrong choice of the method to be used. To avoid this good planning of the method is essential and more in order to get reliable results. The four categories of quality management in a study were highly considered. These include validity, reliability, ethics and rigor. Reliability of a study is its ability to have consistence in results. This is done on controlling the sample by stratifying the population to get a more representative sample. Validity is the ability of a scale to measure what it is intended to measure but not going beyond the topic of the study.

 Procedure
The key purpose of data collection was to ensure a rich set of description was obtained. To achieve this, the interviews were transcribed in real time by the interviewer. The responses were then reduced and analyzed by adopting principles of data codification and clustering (Miles et al, 1994). This was supplemented by administration of questionnaires as well as comprehensive review of relevant literature.
   
The data gathered for this research is from a wide range of documentary sources relating to banking risks. These mainly included policy documents, academic and the non-academic documents. First, journals on cooperative learning and competition learning were searched. Second, electronic databases were searched using key words like banking, risks. Third, government website for financial institutions regulations was searched. Literature review included both conceptual and empirical works with about 10 articles reviewed for this study.

3.3 Data Analysis
   
In research the data collected need to be synthesized in order to make sense in regard to what is being studied. The data from the questionnaires in this research was analyzed extensively (Zikmund 2003) to retrieve the information contained in them. The triangulation method for data analysis and interpretation was used to interpret the data collected basing arguments on grounded theory (Dick 2000 Knafl  Breitmayer 1991). In addition the information obtained from the case study was analyzed individually and thereafter a comparison was made between the different data sources.
   
The four categories of quality management in research were highly considered. These include validity, reliability, ethics and rigor (Zikmund 2003). Reliability of a research is its ability to have consistence in results. This was done on controlling the sample by stratifying the population to get a more representative sample. Validity is the ability of a scale to measure what it is intended to measure but not going beyond the topic of the study. The triangulation method was used to control this aspect in research. Ethics involves adherence to the norms accepted in gathering of information. This was ensured by providing secrecy on the information collected from the participants. The rigor of the research was directed towards efficient sample size in a critical facet in any investigation. The main purpose a researcher will utilize a sample is to reduce the charges and collect important data faster (Zikmund, 2003).

The subjects of analysis in this study include details on banking risks of major banks in Germany as compared to the risks faced by key banks in Europe. This study has utilized quantitative research method. The data was collected from different banks and banking consultants both in Germany and in Europe. This was edited so that relativity in banking risks could be analyzed by working out mean, medium and mode, percentages and other measures of central tendencies have also been worked out.
This study has been conducted through quantitative data analysis. The data was collected from different banks both in Germany and in Europe. The data obtained was edited for errors and to separate useful information from less useful ones. The data was then coded for easy analysis. The data was analyzed by working out relevant measures of central tendencies before finally drawing conclusions.

Results and Discussions
From the analysis of the banking risks of the sector both is Germany and in Europe, it is evident that the banking sector has for a very long time been bound by numerous risks. These have however not been brought to the forefront given the nondisclosure policy that most banks tend to pursue. This analysis has however been able to indentify several risks including market risks, interest rate risks, credit risks, market policy risks, e-banking risks among others. Aspects that are associated with uncertainties including political instabilities and calamities have however not been classified as risks since that are not management related issues.

The dominant risk that cuts across the board and that has posed true risk to the banks for a long time is the credit crisis. This has been more pronounced in the Eastern Europe and Germany where there has continually been a trend to lend out especially to institutional borrowers. The trend in global economic recession has compounded the problem of debt crisis in the two countries. The other crisis that closely followed debt crisis is the interest rate crisis. This is because continuous fluctuations in the world market economy and the global economic crisis has made this crisis to keep on confronting the banking sector in these two countries.
The other risks that the banking sector faces both in Germany and in Europe relates to banking fraud which is slow but significantly gaining predominance, operational risks, the possible loss of reputation, liquidity risk, and systematic risks normally as a result failure in the banking system. While certainly banks are worse hit by the banking crises in Germany, other have been able to manage the associated risks and continues to do very well in this sector. At the same time, some banks have also been adversely affected by the banking crisis in Europe. This similarity in scenario clearly indicates the existence of banking risks in the two countries. It is therefore only prudent to categorically argue that all banks face banking risks whether in Germany or in Europe.

Conclusions and recommendations    The results of this analysis indicate that risks associated with the banking sector are bank specific and country specific. This means that any individual bank may be confronted by its own nature of a crisis that cannot necessarily be categorized as a general problem within the country. At the same time, each country is faced by its own economic conditions that are likely to trigger a unique kind of crisis within its banking sector. It is therefore not prudent to say that German banks are riskier than European banks.
   
While banking crises continues to be a concern to most governments especially when it touches on state owned institutions, the trend in the past has always been on the banks to bail out the ailing institution leading to very heavy constrains on their national budgets by creating huge budget deficits. It is even more pronounced where risks that are associated with debts weigh very heavily on the Gross Domestic Product of a country. Clear regulatory policies should therefore be pursued by countries to ensure that the levels of banking risks are significantly reduced.
   
Since banking risks are management related concerns, it is important that individual banks pursues policies that would ensure prudent management of their financial resources as well as avoid overinvestment in loan portfolios that have subjected many banks to credit crisis. Instead banks should strive to pursue policies that would ensure they retain the confidence of the existing shareholders and to ensure stability of their capital base at all time. Where banks consistently display poor performance that subjects investors to heavy banking risks, the governments should step in with regulatory measure to protect the investor from possible investment losses.

Are the German banks riskier than the European competitors

This study utilised four banks in Europe and compared them paying particular attention to Germany. The study asked to what extent German banks could be said to be riskier than other European competitors in relation to three factors loans, security and deposits. The data used was a piece of research conducted by uparab.com that was related to the risk involved in banks. It was found that there was a significant difference between the risk in German banks and risk in other banks in Europe in relation to security. No significant difference was found between the countries in relation to loans andor deposits. It was noted that only banks from three other countries in Europe were used in this analysis so a real representation of Europe was not made. The significance of year range was also taken into account on summation. It was advised that future research could be conducted into this area of research using the findings of the uparab.com data as a pilot.

There is much scepticism towards banks in the contemporary sense. This is because of the recent collapse in American sub-prime lending and the nicknamed credit crunch in Europe. This has led to banks halting their credit and becoming more rigid in their funding of loans. Further, it has led to cash injections made by the state in an attempt to steady the economy. This has led to concern regarding the safety of banks and also the publics faith in banking. A number of primary data sets related to the confidence in banks that indicates a number of relative variables can be found on the Arabic website uparab.com. One such study utilised the figures pertaining to different facets of four European banks. For this report, we shall compare them paying particular attention to the German banks.

Review of relevant literature and theory
A great deal of research has been produced in relation to comparisons in the European market due to relatively recent observations in economic downturns, which have indicated a degree of differences across nations. For instance, a study conducted by Lozano-Viva et al (2004) analysed the technical efficiency between each country by using samples following the Data Envelopment Analysis (DEA). The comparison of core European nations, including Germany, were found to show that  country-specific environmental conditions exercised a strong influence over the behaviour of each countrys banking industry  (Lozano-Vivas et al, 2004). This indicated that there were crucial differences depending upon national variables in relation to banking risks.
               
This is compouned by former study which has established a link between European banking and the American market. For instance, research by De Bandt  Davis (1999) found that the level of competition was relatively low in France and particularly Germany indicating that there would be a rise in competition in smaller banks in those regions. They concluded that the research implied  a notable rise in competition for small banks in France and Germany, as well as an increase in competition for large banks, especially in Italy  (De Bandt  Davis, 1999). However, the research also indicated the nature in which banks could be seen to be taking risks in relation to the different sizes of each bank. Essentially, smaller banks would use a more deposit orientated approach to lending, whereas the bigger banks would put more emphasis upon security.  
                
In a recent piece of research conducted by Schmidt et al, a comparison of the banking and lending habits of three countries was incorporated. It was found that positive changes were being made in both Britain and France, but not in Germany. Schmidt et al stated that

 We find that there is neither a general trend toward disintermediation, nor toward a transformation from bank-based to capital market-based financial systems, nor toward a loss of importance of banks. Only in the case of France could strong signs of transformation as well as signs of a general decline in the role of banks be found. Thus the three financial systems also do not seem to be converging.  (Schmidt et al, 2001)
        
 It is with this seemingly backward step being taken by Germany in relation to banking and maintaining risk factors that we will turn to the data in the recent study conducted by Schmidt et al (2001) to see to what extent we can say that German banks are more riskier than other European banks.

Methodology and Data
The methodology used in this report was a quantitative comparison between Germany and three other banks in Europe. The use of an ANOVA test was employed across three variables to asses different areas of risk. The methodological tasks performed in this section was based upon the data sets gathered by uparab.com. This created a number of possible hypotheses based upon the report title. It was decided that three of the variables would be used to measure the variable. These included deposit score, loan score and security score, each of which would be compared via country. The data used in the result and discussion section was therefore adapted from the original piece of primary research by leaving out many of the other variables by creating a derived variable from three others. Further, the research questions and hypotheses and ways of analysing the data were slightly revised from the original study to incorporate the title question and revised to fit this test. Furthermore, the coverage of this is limited to an analysis of a one-way between subjects designs only. Therefore, there was no demonstration of either multivariate or factorial analyses, which could be used on data such as this. Three separate tests were devised as individual between subjects ANOVA tests. Histographs were chosen as figures to illustrate both the descriptive and inferential descriptions in all of the tests. The graphs were split into four figures showing the curve in each condition rather than a comparison of the conditions. The hypotheses in either condition were devised to incorporate findings in relation to potential risk.

Fig 1. Table of Descriptive Statistics for Loan Scores.
We can see from the table in figure one that the mean loan score in the be condition (N15) was 1666.73 and that the standard deviation was 1529.19. We can also see from the table in figure one that the mean score for de (N15) was 1913.73 and that the standard deviation was 369.22. The score for fr (N15) was 1553.60 and the standardc deviation was 671.59 and the score for ie (N15) was 1970.87 while the standard deviation was 973.35  We can see that there is no clearly observable difference between the four variables.

Fig 2. Graph Showing the Differences in Amount of Loan Score Between the Four Countries.
We can see from the graph that there is no significant difference in loan scores across countries. The mean average shows the difference in scores between each country. The standard deviation shows the spread of the mean values in either condition. The variance between the two sets of data was found not to be significant according to the ANOVA test (F(3, 56) .611 p  0.61). It would appear from the data that there is no significant difference between the four countries in relation to deposits. Therefore, it cannot be said that the there is a heightened risk arising from loans in German banks than in other areas of Europe.

Fig. 3 Table of Descriptive Statistics for Security Scores.
We can see from the table in figure one that the mean loan score in the be condition (N15) was 934.67 and that the standard deviation was 704.70. We can also see from the table in figure one that the mean score for de (N15) was 1317.00 and that the standard deviation was 311.36. The score for fr (N15) was 299.67 and the standard deviation was 185.91 and the score for ie (N15) was 1568.83 while the standard deviation was 854.32 We can see that there is an observable difference between the four variables.
             
The inferential statistics revealed that there was a significant difference between the scores in the security data between the four countries (F(3,56)  13.34, p  0.005).

Fig. 4 Graph Showing the Differences in Amount of Security Score Between the Four Countries.          
We can see from the graph that there is a significant difference in security scores across countries. The mean average shows the difference in scores between each country. The standard deviation shows the spread of the mean values in either condition. The variance between the two sets of data was found not to be significant according to the ANOVA test (F(3,56)  13.34, p  0.005). It would appear from the data that there is no significant difference between the four countries in relation to deposits. Therefore, it can be said that the there is a heightened risk arising from security in German banks than in other areas of Europe.

Fig 5. Table of Descriptive Statistics for Deposit Scores.
We can see from the table in figure one that the mean loan score in the be condition (N15) was 2404.27 and that the standard deviation was 2077.26. We can also see from the table in figure one that the mean score for de (N15) was 3082.00 and that the standard deviation was 689.36. The score for fr (N15) was 1827.47 and the standard deviation was 840.87 and the score for ie (N15) was 2805.20 while the standard deviation was 1649.53  We can see that there is no clearly observable difference between the four variables.

The inferential statistics revealed that there was no significant difference between the scores of the countries in the deposit condition (F(3, 56) 2.165 p  0.102).

Fig. 6 Graph Showing the Differences in Amount of Deposit Score Between the Four Countries.          
We can see from the graph that there is no significant difference in deposit scores across countries. The mean average shows the difference in scores between each country. The standard deviation shows the spread of the mean values in either condition. The variance between the two sets of data was found not to be significant according to the ANOVA test (F(3, 56) 2.165 p  0.102). It would appear from the data that there is no significant difference between the four countries in relation to deposits. Therefore, it cannot be said that the there is a heightened risk arising from deposits in German banks than in other areas of Europe.

It would appear from the findings of the results that there is a significant difference between the risk in German banks and risk in other banks in Europe in relation to the mean average of scores from the security condition. Further, there appears to be no significant difference between the countries in relation to risk in either the loan and deposit scores. However, only banks from three other countries in Europe were used in this comparative analysis and the data was obtained across a specified range between the years 1994 and 2008. Essentially, there may be variants that have changed the potential risk in recent years and Europe cannot be said to be represented by three nations in total. Nevertheless, the findings have indicated an area of interest that may be taken up by future research aimed at identifying the risks in European banks or trading practices.

Measuring Company Performance KPI, Score card

Many companies are embracing the idea of measuring their performances using appropriate measuring tools such as Key Performance Indicators, Balanced Scorecard, and Key Business Areas. Performance measurements involve companies propositions, plans, and presentation of their operational processes (Barbuio, 2009). Performance measurement entails leaders and outcomes of various major business operations that top management use to make appropriate choices of management strategies. The CURT members and other organizations apply these measuring tools to improve both their financial and non financial performances (CURT, 2005). The best performance measurement should embrace distinct features, which include measuring performance based on both fiscal and non fiscal perspective, giving support to collaborative propositions, relevancy, consistency, accuracy, and time bound (Barbuio, 2009).
   
The CURT members and other organizations use Balanced Scorecard as a measuring tool to measure their performances (CURT, 2005). Balanced Scorecard embraces four proportionate aspects, such as consumers, fiscal issues, inward organizational mechanisms, expansions and learning, hence covering a wide range of organizations performances (Martin, 2009). The Key Performance Indicators present previous results, whether satisfactory or otherwise, realizes the quality of organizations mechanisms, decides on the business units that require expansions and growth, plus the needed resources, among others (Barbuio, 2009). The CURT members better performance attributes to the application of KPIs to measure their areas of weaknesses, hence improvements in their overall performance (CURT, 2005).
   
1.1 Thesis statement
The concept of measuring companies performances using the appropriate measuring tools, such as Key Performance Indicators, Key Business Areas, and Balanced Scorecard is an issue of persistent debate especially at the Board level of different organizations. Numerous companies face challenges at the Board levels on the best measurement tools to incorporate in gauging their performance. Related literature indicates that organizations that perform better such as the CURT members have appropriate tools for measuring their performances, while the ones that are lagging behind do not involve appropriate measuring tools such as KPIs, KBAs, and Balanced Scorecard. This study will aim at extracting information on the proper design of structures that can monitor organizations performances, which will assist in closing the existing gap of inappropriate approaches of measuring companies performances.


1.2 Scope of the Study
The study will cover a wide range of key performance indicators of CURT member companies and other organizations. The study will examine how measurement tools are effective for CURT member companies financial and non financial performances. The study will identify a case study company and closely examine their design of measurement tools and their effectiveness to the financial and non financial performance. The study will also examine various performance measurement approaches for CURT member companies.

1.3 Significance of the study
This study has much significance to leading authorities, companies, and organizations. The results will assist leading authorities to realize the designs of key performance indicators and their relevance to the companies operations. The study will assist organizations to formulate better balance scorecard that can improve both their financial and non financial performances. The study will further analyze the framework that depicts the eligibility of what can effectively measure CURT member companies performance, therefore assisting leading authorities to improve their overall performance.

1.4 Objectives
The main objective of this study is to examine the effectiveness of measurement tools that CURT member companies use to gauge their performance. For proper achievement of the main objective, further subdivisions are as follows
To understand the design reasons for the performance measurement approach of the CURT member companies
To evaluate the performance measurement approach of CURT member companies
To identify potential improvements in performance measurement approaches of CURT member companies
To find out performance measurements that suit CURT member companies and other organizations

1.5 Hypotheses
CURT member companies use key performance indicators to gauge their both financial and non financial performances.
Key performance indicators improve CURT member companies financial and non financial performance
Companies that have apply key performance indicators, such as KPIs and Balanced Scorecard perform better than their competitors.

1.6 Research questions
How do CURT member companies measure their output
What are the major features of an effective performance measurement system by CURT member companies
How does the examination of design reasons for performance measurement approach in CURT member companies assist the interested leading authorities
What are the performance measurement approaches of CURT member companies

Chapter 2.0 Related literatures  
Related literature show that Construction User Roundtable (CURT) avails key performance indicators of various companies in United States of America, which include TESCO, Abbott Laboratories, Cisco systems, Walt Disney Imagineering, The Dow Chemical Company, Eastman Kodak Company, Citigroup, FMC Corporation, IBM, Intel Corporation, Salt River Projects, and Southern Companies, among others (CURT, 2005). Related study shows that performance managements improve the level of financial performance in companies that widely implores their use (Businessweek Research Services, 2008). Further related study notes that one major strategy is significant in measuring the companys performance. Martin (2009) notes that the company should consider their customers, finances, companys inner procedures and expansion opportunities in order to design a proper measurement tools for both financial and non financial performance.
   
CURT (2005) shows that performance measures of construction companies are of two categories, which include micro-measurement and macro-measurement. Related study notes that micro-measurement covers the companys internal features, while macro-measurement analyses and compares companys performance in a greater perspective. Related literatures indicate that performance measurement of a company involves fiscal and non fiscal concepts coupled with business results and their initiators (Lonnqvist, 2000). In Smith et al (2007) view, companies can measure both their financial and non financial performance through the business models applied and strategies incorporated. Related literatures indicate that companies develop key performance indicators depending on variables and expenses, which analyze their strengths, weaknesses, threats and opportunities Kromer (2009). 
   
CURT (2005) notes that companies use micro-measurements to measure financial performance at regional level, which are then integrated to measure performance at greater levels. For instance, the Recordable Incident Rate for local company can be used in the comparison of other companies performance globally. Related research by The Businessweek Research Services (2007) indicates that performance management assists companies to organize and communicate their business strategies along different sections and all over the company. For example, Air Navigation Service Providers (ANSP) measures the performance of their Air Traffic Management at local (ATM), cross border, and international level, which assist in expenses management and safety surety. Performance indicators at local level show the services of the service quality, among other concerns of ANSP, and comparison on the performance is at the regional level (ICAO, 2005).
   
Related literature notes that construction measures entail outcome and procedural measures. For instance safety outcome measures encompass initial aid, physicians case, recordable incident, among others, while procedural safety involve behavioral survey, procedure auditing, and predictions of accidents, among other issues (CURT, 2005). According to Maisel (2001), businesses apply profits and operational returns to measure their financial performances and satisfaction of consumer preferences to depict non financial performances, with great value offered to financial performance. Maisel (2001) further notes that reduced marginal returns depict a companys retrogressive performance, therefore a need to redesign appropriate strategies to improve the performance. Related study shows that most companies use consumer services to measure non fiscal concerns.
   
Related study by CURT (2005) shows their members such as DTE Energy, Cisco Systems, Dow Chemical Company, Johnson  Johnson, IBM, and General Motors, among others embrace the use construction measurements and persistent growth to capture the management concerns and companys gratifications. Related literatures indicate that fiscal issues are of high significance in evaluating the performance of a company as compared to developing models to help the top management (Maisel, 2001). Further study shows that many people value Balanced Scorecard the best way of realizing performance measurements in a company (Maisel, 2001).
   
The findings show that the highest average range stands at 3.80 with the lowest at 2.44. The rating was on a 5.00 scale, with 5 widely applied, 4 often applied, 3 applied, 2 seldom applied, and 1 not applied at all.
   
Related literatures indicate that projects head is responsible for ensuring that objectives of the project are in line with both consumer and collaborative aims. Project head is responsible for formulating and implementing processes and measures to trace, and bring forth the construction outcomes (CURT, 2005). Related literature shows that focusing on one key performance indicator during measurements of companys performance is of great significance and produces best results in comparison to collective use of KPIs. For example, picking of companys finance as single KPI will assist the company to monitor escalating or decreasing of overall sales, increasing or decreasing marginal returns, hence making appropriate judgments on the best way forward that will improve the companys overall performance (Martin, 2009).
   
Related literatures suggests that project head should work hand in hand with construction heads and project engineers to design the best measurements for the companys performance. The project head just as the name suggests will be in charge of the project and coordinates other group members by making sure that collaborative and consumer aims go together will companys goals (CURT, 2005).  Further study reveals that project head organize project teams to identify companys key management areas such as strengths, weaknesses, opportunities, and threats. The project head evaluate performance measures that trace continuous performance of the project, and ensure that the project objectives are on the best track. The project head will finally take the opportunity to communicate the project outcome to both corporate group and consumers CURT (2005). Related literature shows that the best example of performance measurement systems is United Kingdom Audit Commissions Comprehensive Performance Assessment (CPA) that is responsible for over 400 local municipalities and councils in both Wales and England that report to CPA every year (Carlton, 2003).
  
 Related literature shows that the responsibilities of project planner at the project level entail combining project control models with project measures procedures, and making a summary of construction measures and take to project head (CURT, 2005). Related study indicate that performance measures can be follow three processes, which include , model led, needs led and audit led. The needs led approach for instance identifies the consumer, business, and partners requirements that are combined to develop performance measures (Bourne  Neely, 2003). Literature reveals that model approaches incorporates model theories of a business to formulate the performance measures, while the audit led approach involves auditing the prevailing performance measures. Literature indicates that audit led approach encompasses the collection of data concerning the existing performance measures, which are then put into comparison with the current performance measures with an aim of making appropriate adjustments (Bourne  Neely, 2003).
   
Literature shows that the responsibility of the construction manager at the project level includes but not limited to looking for project opportunities and design improvement measures, implementation of constructions main aims, gathering and analysis of construction measurement information, and reporting the measures status of improvements to the project head (CURT, 2005). Related literature indicate that the incorporation of performance management at the L.B Foster, a United States manufacturing company based at Pittsburg  for instance, assisted the company to achieve approximately 50 improvement on revenue, increased prices of stock by over 250, and increased the consumer preference satisfaction (Businessweek, 2008). Literature reveals that the Balanced Scorecard for small and medium enterprises has a close relationship between key performance indicators and the financial performances, addresses the hurdles to effective implementations of performance measures, combines the organizations plan with operations in the business, Balanced Scorecard rely on the cause and effect relationships, hence providing the best overview of a business unit (Taticchi, et al, 2008).
   
Related literature shows that the summary of project reports at the business environment, cross border, corporate level, and at the site is the responsibility of corporate level personnel. Further studies reveal that construction measures responsibilities at the corporate level does the analysis of data collected, benchmarking both outside and inside the organization, checks on the organizations strengths, weaknesses, opportunities, and threats, establishments of practical processes of result improvements, and the persistent elevation of corporate standards, duty procedures, and implementations of the performance measures (CURT, 2005). Literature indicates that the L.B Foster Company initially had inappropriate performance management mechanisms that were not connected and aligned to track their performances (Businessweek, 2008). Related literature reveal that Holy Cross Health System (HCHS), a chain of health providers in U.S. incorporate cost information system (CIS) to ensure that their operation were under control, which included reducing operational expenses and reformulation of performance measures. HCHS used the cost information system to combine overall ledgers expenditures, orders for utilized materials, and work force expenses. More literature reveals that the top management identified the production guidelines to countercheck the costs on work force, these expenses assist in the decision support system (DSS) to analyze numerous operation of the hospital network (Kohli, 2004).
   
Related literature indicate that the aim of this sample Balanced Scorecard Aspect and performance measurements id to create a state of equilibrium between measurements in association with every aspect, focusing on one proposition. Further literature reveals that such performance measurements should back up one another to ensure appropriate achievement of the required objectives. Performance measurements in the above table entail drivers and outcomes to enable easy analysis of an organizations performance (Martin, 2009). Related study reports that timing play an integral role at the project level, therefore a need to make appropriate project planning (CURT, 2005). Appropriate project planning will entail project construction measures at the initial stages, possibly after proper definition of project aims and project coverage. The implementation of construction measures operational procedures are put on action as the project construction progresses (CURT, 2005).
   
Related literature declares that constituted construction measures duty procedures assists in the collection of appropriate data that will be incorporated to analyze the performance of project. Further literature explains that constructive construction measures uncovers projects strength, weakness, opportunity, and threat both internally and externally, building of progressive concepts, and putting into action the directed construction work plans (CURT, 2005). Literature uncovers the significance of incorporating culture in line with realities, propositions, and measurements in the success of performance management. Related study reports that contrary to what organization might believe on that performance management minimize operational costs, performance management mainly involve putting priorities on the best action plans in organizations (Businessweek, 2008). Literature evidences that the performance management system structure checks the performance of the business in line with performance measurement system at the same time. This phenomenon operates along the major features of performance measurement systems formulation procedures in conjunction with subsequent performance measurements (Najmi, 2005).
   
Related literature reveals that timing at corporate level involves summarizing, aggregating, analyzing timely reports, preferably every month. There is initiation of progressive concepts and implementation of work processes on a persistent basis guided by the project input expenses, resources available, and profitability (CURT, 2005). Relevant studies further reports that CURT member companies such as Caterpillar Inc., Toyota Motor Mfg. North America, E.I. Dupont De Nemours  Company, Exelon Corporation, and FMC Corporation, among others, incorporate quality improvement cycles to spearhead development in projects procedures and outcomes at the corporate and project stages (CURT, 2005). Related literature explains that Balanced Scorecard differs from the habitual performance measurement concepts because of the four coverage concepts, such as consumer aspects, inward organizational progressions, and fiscal concept. The Balanced Scorecard realizes whether the fiscal yardstick are outcome manifestations, hence the upshot of other remaining leading manifestations (Kagioglou, et al, 2001).
   
Related literature shows that CURT member companies such as Caterpillar Inc., FMC Corporation, and Exelon Corporation, among others apply a habitual cycle known as Plan-D0-Check-Account (PDCA) to countercheck their progress in construction outcomes (CURT, 2005). Related study indicates that BNSF Railway in Fort Worth, Texas incorporated a culture that encourages every employee to be accountable, thus an effective Key Performance Indicator in their overall performances (Businessweek, 2008). Further related literature declares that different organization may have different key performance indicators depending on the organizations vision and mission statement. Related literature offers the examples below as some of the KPIs that organization can use to measure their performance or not, and include but not limited to cash flows, direct costs, marginal returns and expenses, gains per labor force, and gains per consumer, among others (Morrison, 2009). Related study uncovers the main aspects of performance measures in organizations, which include being understandable, reliable, available, functional, valid, and responsible, among other features that ensures effective measurement and improvement of organizations performance (Lichiello, 2000).

Source Construction Measures Key Performance Indicators (CURT, 2005, p.7.) 
This overall progressive cycle is persistently repeated to propel progressions in construction work mechanisms, and subsequent construction outcomes. Related literature reveals that CURT members designed standard project mechanisms in two sections, which include proprietor developments and searching and reapplication (CURT, 2005). Related literature shows that the CURT members would direct human resource and a summary of corporate experiences to come up with recommended project mechanisms (CURT, 2005). Literature reveals that CURT members integrate proprietary developments with searching and reapplying to achieve the required project mechanisms (CURT, 2005). Related literatures uncover some roles of KPIs in the broadcasting industry as reporting previous results, either positive or negative, selecting areas that require pull ups and the needed support, establishing the business mechanisms qualities, and letting partners to contribute and criticize the performance of broadcasting unit (Barbuio, 2009).
   
Related study indicates that CURT members had to formulate correlating concepts of construction measures that could assist in tracing project growth and making predictions on the projected results of the project mechanisms for the construction procedure (CURT, 2005). Further literature declares that such performance measures have the aims of supporting construction objectives, vision, and mission statement at all stages, such as cross border, sites, project, and corporate stage. Literature reveals that every measure comes with a way of realizing short run outcomes and future projections. Literature uncovers the uses of this measurement equipment, which checks the overview of management concerns and the comparison of real outcomes with projected outcomes, hence streamlining the performance of an organization (CURT, 2005). Related literature shows that many organizations fail to effectively measure their performance because of collection of data that are unnecessary to the real performance measurement mechanism. Literature further evidences that most organizations lack proper aims and propositions to assist in prioritizing the progressive concerns. In addition to such barriers effective implementation of performance measurement policies is the lack of mechanisms to carry out research on the main causes of poor performance of organizations (Costa, 2004).
   
Related literature reveals that CURT members design measures in sensitive concerns of construction development, which include price, program, variance execution, quality, safety, reliability, productivity, and consumer satisfaction, among others (CURT, 2005). Literature indicates that the price execution policy traces short term expenditure and the guesses the projected expense results, while program execution policy traces progressions in constructions, and guesses the projected program results. Relevant literature explains that the variance execution policy traces construction variance, and follows prices, quality concerns, and program (CURT, 2005). Related literature indicates that the development of Balanced Scorecard was mainly to eradicate the habitual tools for measuring performance of organizations. Literature further shows that Balanced Scorecard proved to be very effective in measuring organizations performance because of the wide coverage, such as fiscal aspects, consumer aspects, inward operational aspects, innovative aspects, among others (Olsen, 2008).
   
Related literature reports that the safety execution policy traces and put safety occurrences into various segments. Such safety measures involve accidents, doctors incidents, recordable cases, first aid incidents, among others. Related literature reveals that safety execution policy will guess the future and continuous measures, which include but not limited to behavioral observations, process auditing, and fatality projection concepts (CURT, 2005). Related studies reveal that Energizer Holdings Inc., based at St. Louis incorporated collaborative culture development in line with data choices, which assisted the company to realize positive impact on their business operations (Businessweek, 2008). Related literature announces that using Balanced Scorecard eradicates ambiguity in organization through showing of quantifiable signs, achieves equilibrium on the current, moderate, and long range execution goals by application of various performance measurements, and avails proposition communication arena interconnecting the human resource from the highest hierarchy to the lowest in an organization (Morisawa, 2001).
   
Related literature explains that quality execution policy controls and evaluates the quality of construction commodities, hence forecasts future quality impediments. Real quality concerns are among others, quality expenses, expenses of redoing the projects, non compliance concerns, and quality checks (CURT, 2005). Literature indicates that ICO Holland called the person in charge of the union to get involved proposition planning mechanisms to propel better performance not to mention Key performance Indicators. Further related literature reveals that this invitation was to involve all the human resource in formulating KPIs, hence improving the overall performance of the company (Businessweek, 2008). Related literature shows that performance measurement policy assists in planning and achieving organizations goals, decide on the significant organizations sustainable leader, counterchecks human resources performance and organization achievement measures, use the collected data to trace outcomes in the long run, and checks the organizations threats and opportunities plus their relevancy to performance measures (Mercer LLC, 2007).
   
Related literature reports that organizations at times apply the performance factor policy in measuring the workforce productivity, choosing production expansion leverages, forecasting the influence of the expense on project and programs. Further studies shows that organizations use performance factor policy mostly when there is projected uncertainty due to less production against the expectations (CURT, 2005). Related literature reveals that Premier Bankcard Inc, which bases in Sioux Falls, S.D, and one of the outstanding credit card organization in U.S. considered the Return on Investment (ROI) by reducing the number of mails sent to customers. For example, cutting down the number of letters sent to their customers that do not receive reaction by slightly over five per cent improved the companys Return on Investment (Businessweek, 2008). Related literature reports that performance management cycle encompasses planning, implementing, and evaluating processes, which assist those who are in charge with relevant data to make appropriate choices during companys executions, hence realizing better outcomes (McDavid, 2005).
   
Related literature indicates that CURT members in a bid to realize their consumer satisfaction, embarks on measuring the performance of their developed commodities. Further literature shows that such measures plays integral role on the improved fiscal performance, which include capacity, speed, reliability, efficiency, expense on maintaining equipment, and operational expenses (CURT, 2005). Related literature uncovers the concept of data viewing in organization, which continuously brick conflicting issues time and again. Related literature indicates that different data for different workforce is the best way forward, hence encouraging labor to forge the appropriate way. For example, Procter  Gamble, the Cincinnati based company commenced the corporate reflective system that will march companys operations and the workforce skills for more than 30,000 global users (Businessweek, 2008). Related literature indicates that performance measurement mechanism does not only involve data gathering and evaluation in line with the organizations aims and objectives but should cover the whole execution mechanism directed to the improvement of delivery of public health service for this matter. Related literature further breaks the mechanisms into making a proper plan, executing, making reports, and results (Delcarme, 2004).
   
Related literature shows that CURT members most of the time trace their consumers satisfactions by the application of consumer results survey in line with consumer preferences (CURT, 2005). Related literature reveals that Skanska USA Building, a Parsippany, N.J based company avails data to their top management and employees that led to their workforce making choices that continuously impacts on the companys fiscal developments (Businessweek, 2008). Related literature shows that proper designing of performance measurement mechanism entails collecting the consumer perspectives, and various business partners to incorporate into the business aims and goals. Further related literature recognize three stages of designing performance measurement mechanism, which include alignment of unsubstantiated information, editing the unsubstantiated information, and finally coming up with appropriate performance measurement mechanism (Jamaludin, et al, 2007).
   
Related literature notes that there is implementation and deployment of recommended project procedures and collaborative measurement mechanisms by the CURT members (CURT, 2005). Literature shows that matching performance measures and project procedures should be a project group task, therefore the head of the project is entitled to mobilizing and recruiting in the company, explaining the aims, vision, and mission of the project, couching and enlightening human resource in the company, and putting the recommended system in the company (CURT, 2005). Related literature reports that Corporate Express, which distributes office services and products in Broomfield, Colo, increased their business intelligence equipment from below 1000 to approximately 4000 workforce. Further literature reveals that this phenomenon assisted Corporate Express to develop their KPI by offering every section the required data, integrating collaborative structure to ease accessibility of data, and concentrate on utility, which labor should realize their significance due to the application of performance management and business intelligence (Businessweek, 2008). Related literature states that Balanced Scorecards utility reflects in areas that include reason of propositioning performance results, connecting performance and proposition, and to relay various aspects in an organization (Kueng  Krahn, 1999). 
   
According to related study, the CURT members identify appropriate human resource for the project activities and matching performance measures who take the responsibility of the project development, and there is need for acquaintance with the aims, vision and mission of the project to ensure a success (CURT, 2005). Related literature shows that BNSF Railway incorporated automatic reporting tool that counter checks approximately 50 measures of business operation. In addition, the measures assist team leaders to do the evaluation of movement speed, and project heads also find the data important for their daily executions (Businessweek, 2008). Related research on the effective performance of contractors in the United Kingdom construction field reports that consumers play integral role in the efficient and effective deliverance of services in the construction industry. This adage attributes two poor communications between the customers and the products and service providers, hence failing to realize the customers preferences. Further related literature uncovers the habitual performance measures in the construction field, which include duration, price, quality, among other factors as the KPI scorecards that rate the level of results in construction projects (Butcher, et al, 2009).
   
Related literature unveils that CURT members initiate the recommended system that makes project execution simpler, which entail all office equipment such as faxes, printer, both intra and internet availability just to mention a few (CURT, 2005). Further literature reveals that the CURT members check their project progressions, and ensure the tracing of construction measures project activities. Literature shows that the labor force charged with such duty does the tracing, monitoring, and analysis of performance measures before presenting to the project head (CURT, 2005). According to the related literature, Premier Bankcard accepts the significance of both business intelligence and performance measurement as the initiator of information exchange in an organization. Literature indicates that Premier Bankcard offer lunch rewards, film entrance tickets, among other contests as their return on investment, which was successful because of their improvement on performance management (Businessweek, 2008). Available literature reports that performance measurement in organization can be successful if done in the line of four basic aspects, such as information, insights, influence, and institutionalizations (Mercer LLC, 2007).
   
Related literature shows that the CURT members involve in aggregating, analyzing, and presenting the information based on the progressive gratifications, and making adjustments on the areas lagging behind (CURT, 2005). Literature explains that the person in charge gives appropriate pieces of advice on the best areas in the project that require progression, hence building action logistics in line with the region of the project that require progression (CURT, 2005). Related literature reveals that the plan-do-check-act cycle improves the performance of a project by availing results if done repeatedly (CURT, 2005). Related literature declares that human resource should not realize the difference between BI and PM but should aim at excellent performance to endeavor the success of an organization (Businessweek, 2008). Related literature indicate that economic development agencies have sophisticated operations, such as global marketing, among others that need equally sophisticated measures of performance as opposed to their traditional performance measures that involve presenting organizations figures (Melkers  Malone, 2002).
   
Related literature reveals that planning brings about project mechanisms and measures, doing allocates project mechanisms, and measures to the organizations units, checking determines how best the project mechanisms progresses, and finally acting escalates project mechanisms as required (CURT, 2005). Literature indicates that the persistent improvement on work outcomes follow the implementation of PDCA cycle in an organization (CURT, 2005). Related literature shows that Excel, Share Point Server, and SQL Server are BI tools developed by Microsoft  Corporation to propel individual, group, and companys output, hence improving the overall performance of the business (Businessweek, 2008). Available literature uncovers the method for identifying performance indicators that include but not limited to using many individuals, greater influence on individuals health, focusing on critical issues, focusing issues the alter peoples perceptions, should be connected to results or real results on their own, should be flexible, easy to compare, valid, focus on projects vision and mission statement, should be reliable, among others (MHSIP, 1999).
   
Research Design
I will mainly use secondary data from the related literature on the CURT members and other companies Key Performance Indicators and Balanced Scorecard. I will put much emphasis on previous relevant studies based on past theories, corporate strategy, business strategy and business performance measuring tools such as KPIs, Balanced Scorecard, and Key Business Areas (KBAs). I will involve approach of the study, objectives of the study, and appropriate resources in my research design that will ensure effective data collection on the alternative approaches that various organizations use in performance measurement. I will integrate both study design and empirical cycle with study hypotheses to identify the significant characteristics of a good performance management system.

I will put much emphasis on the empirical cycle by exploring secondary data from related literature on developing a check list that is able to evaluate the organizations performance system (Crotty, 1998). I will also put much concentration on SWOT analysis, which entails companys strengths, weaknesses, opportunities, and threats that illustrates the gratifications and impediments of various performance measurement approaches by CURT members and other companies. During the collection of data from the secondary sources such as books, journals, magazines, internet, among others, there will be much focus on best practice approaches to companys performance.   

I am bound to explain the methodology in the design cycle before testing my results that involves validating the applied methodology. My next step will be to make conclusions and recommendations from analysis of outcome on the design reasons for the performance measurement approach in the case study. In addition, I will recommend on the potential improvements in various performance measurement approaches used by different companies.

This research onion will be very significant in achieving my study objectives such as realizing the effectiveness of organizations performance measurement. I will apply the research onion concepts to assess the effectiveness of performance measuring tools used by CURT members and other companies, such as Key Performance Indicators (KPIs), Balanced Scorecard, and Key Business Areas (KBAs). This research onion covers research period, decisions, propositions, approaches, and study philosophy, which will enable my effective collection of data on the design reasons for the performance measurement approach in the case study companies (Ticehurst  Veal 2000). This research onion will assist me in proper evaluation and assessment of CURT members and other organizations, their theories regarding performance measurement in organizations, corporate strategies, business strategies, and performance measuring tools, such as Key Performance Indicators (KPIs), Balanced Scorecard, and Key Business Areas (KBAs).

Data collection
I will collect data on the performance measurement used by CURT members and other organizations from the secondary sources, which include books, journal, magazines, newspapers, and internet, among other secondary sources. My concentration during data collection will be on the will be on the effectiveness of organizations performance measurement by emphasizing mainly on the effectives of measuring tools that CURT members and different organizations apply to measure both their financial and non financial performance. I will further thrive to identify the major features of effective performance measurement system that organizations apply. During data collection, I will focus on the design reasons for the performance measurement approach used by CURT members, and how other organizations improve their performance measurement approaches. My data collection from the secondary data will encompass CURT members as my case study, past theories, corporate strategies, business strategies, and measuring tools, such as KPIs, KBAs, and Balanced Scorecard.

Proposed findings interpretation and data analysis
I will apply both qualitative and quantitative analysis on the collected secondary data on measuring CURT members and other companies performance with performance measurement tools such as KPIs, KBAs, and Balanced Scorecard (Glaser  Strauss, 1967). This will involve the application of both inductive and deductive concepts in analyzing CURT members and other organizations performance using the measuring tools such as KPIs, KBAs, and Balanced Scorecard, in line with study questions, objectives, and hypotheses to ensure studys validity. My proposed analysis will involve the analysis of CURT members as the case study, and cross case analysis of other companies performance measurement using measuring tools such as KPIs, KBAs, and Balanced Scorecard (Knox, 2004).

Time Frame
Since the study will mainly involve secondary data collection, relatively little time is enough in comparison to data collection from primary source. I have dedicated about three months for the whole study that covers the collection of data, compilation, and data analysis of the performance measurement of CURT members and other organizations using measuring tools like KPIs, KBAs, and Balanced Scorecard. My study time frame will be as follows the first month is data collection from secondary sources, second month is data compilation, and the third month will involve interpretation of study results, and data analysis.

Resources
For this study to be effective there is need for the incorporation of appropriate resources, which include but not limited to pens, computer, printer, foolscaps, accessibility to the internet, among others to ensure that the collection of  required data on performance measurement of CURT members and other organizations are accurate. I will use the internet to collect current information on performance measurement of CURT members and other organizations that may have not found their ways into hard copies like books, journal, and magazines, among others.

Personnel
This cannot be appropriately carried out without helping hands from the appropriate personnel. I will therefore contract skilled personnel to assist me in collecting, compiling, and analyzing data on performance measurement of CURT members and other organizations using the measuring tools, which include KPIs, Balanced Scorecard, and KBAs. These skilled personnel will assist me in clearing any research backlog that might arise, thus maintaining the time frame of the study.

Clearance
Clearance is a key to better research, therefore is sought clearance before writing this thesis proposal from my supervisor. I first discussed the proposed topic with my supervisor to prove validity and significance of the study before clearing me to write the thesis proposal. My supervisor cleared me to commence the study processes that involve writing thesis proposal that will guide me during the study of performance measurement of CURT members and other organizations using measuring tools like KPIs, KBAs, and Balanced Scorecard. My supervisor will then read my thesis proposal to prove that the proposal followed the required framework that will produce the best results of the study.
   
This thesis proposal will assist in finding out performance measurement of CURT members and other organizations using measuring tools, which include Balanced Scorecard, Key Performance Indicators, and Key Business Areas (CURT, 2005). This study will uncover information on the design of KPIs and their relevance to both financial and non financial performance of organizations that leading authorities apply to improve their performances. The thesis proposal will explore the applicability of Balanced Scorecard by CURT members and other companies, and will also establish a structure that tests the eligibility of what organizations can apply to measure their performance, hence assisting various leading authorities to improve their performances.
   
I realized that some organizations poor performance is an attribute to lack of adequate measuring tools such as Balance Scorecard, Key Performance Indicators, and Key Business Areas, hence a decision to identify this topic. However, some organizations such as most of the CURT members exhibit fruits of incorporating performance measurement using measuring tools like KPIs, KBAs, and Balanced Scorecard. The CURT members for instance improvement of performance reflects in their financial and non financial reward (CURT, 2005). This study will therefore assist many organizations to develop valid structures of measuring performance, which will in turn improve their overall performance in the ever dynamic business landscape.
   
CURT members at times apply PDCA cycle continuously on the corporate stage where there is collection and correspondence of information from various works (CURT, 2005). These strategies can encourage progressive growth, improved dissemination of information, among other issues, thus an overall improvement of the project performance (CURT, 2005). Performance management offers distinctive valuation across the whole organizations units due to creation of responsibility culture, checking of KPIs, improving information exchange within and outside the organization, among others, hence overall improvement of the organizations performance (Businessweek, 2008). CURT members and other organizations value the measurement mechanisms that mainly focus on their financial performance as non financial performance trails. Even though organizations incline more to financial performance, non financial aspects such as consumer behaviors, market competitions, and business landscape developments also play integral roles and have strong correlation with the financial performance of an organization, therefore a need for consideration (Lnnqvist, 2001).

The Pestel Framework for Primark Company in Belgium

The political environment in Belgium in context of the elections in the country lies at worrying positions for the business environment. Despite the coalition formed in 2003 between the socialist parties and the liberal democratic parties, tensions have still rocked the electoral process in the country.  The 2007-2008 political crises in the country set the highest levels of political tension that have been experienced by the country in its 178years of existence (Degraeve 2006). Despite the duration that it took, the crisis greatly interfered with the business environment in the country and it is anticipated that the same problems are still bound to haunt the Primark Company in the future. On the other hand, the state has simplified both the business registration and operational procedures using its e-deposit electronic office. Primark is therefore expected to enjoy an easy regulatory system that is easy to work with (Young 2003).

Economic
With a corporate tax of 34 for the statutory tax rate, the business at Belgium is bound to expend much in this sector (Morrison and Conaway 2006). The total tax rate on the other hand is relatively softer and economical for Primark since they are only expected to pay 5.3 as total tax rate. The VAT of 21 is also a big blow to the companys profit levels (Morrison and Conaway 2006). Being the first country to undergo industrialization, the country has diversified its industrial and commercial base hence providing a conducive environment for the company. The inflation rate though is currently at 4.5 a figure which rose from last years 1.3 (WATERFORD Today 2009).

Social
Belgium has a population of 10,414,336 with most of its population being the younger generation (Thompson 2009). 66.3 of the total population falls between the ages 15-64 years which presents the company with a good market to supply its fashion to. Although the low population growth rate of 0.094 poses a challenge for the company since it will be having a relatively stable market that will not grow (Thompson 2009).

Technological
Finally, the technological environment in the country is well developed due to the several universities and various research institutes. The computer usage in the country is also high with IT penetrating deep into the businesses. E-commerce for Primark is therefore effective in its new market (Van 2003).
Portors diamond for Primark Company in Belgium

Competitive Rivalry
With the market having 520 companies dealing in textiles and clothing industry very many competitors are present in the market (Young 2003). Consumer loyalty is expected to be very low in the situation but this turns out to be different in the market. The consumers are particular of their suppliers and have loyalty unless any change in the quality and cost they receive.

Supplier Power
The Belgium environment has a moderate number of suppliers who are large in size. Similar products are relatively supplied in the market with the fashion almost being at the same level. Substitution of products is also possible but at a very minimal level. This can therefore be deducted to mean that Primark experiences a neutral supply power.

Buyer Power
The region is characterized with a large number of large supermarkets and outlets which carry very large orders as entities. Price is therefore a highly sensitive issue to the buyers since they have higher levels of substitution rates. In overall, the market has a high buyer power.

Threat of Substitution
The customers are not able to substitute the products they get from the Primark Company. By this, the customers are not capable of making domestic arrangements to acquire the clothing (Vanstraelen 2003). They are obligated to shop from the suppliers. The threat of substitution is therefore humbled to almost insignificant figures.

Threat of New Entry
The clothing industry requires experience for survival. As a matter of fact, the entry is met with heavy expenses which can only be reduced by the large economies of scale that Primark Company has so far acquired in the market. The cost benefits available for the company make it unshakable at the entry of new suppliers in the market (Degraeve 2006).
   
The buy power and competitive rivalry are therefore the main worries for the Primark Company in the new Belgium market.

The Beer Industry

The Boston Beer company is one of US largest production of beer. The company life and its operational model revolve on its operational policies.

Life cycle
Life cycle of product reveals the stages that   an organization introduces product into the market and time an organization withdraw the product from the market.

In the case of Boston Beer Company, which is the leading America brewer has a strategy by which the company continues to enhance market advantages. One of the processes is the product life cycle. For example, the Boston beer company employs approximately 2 years before the company think of withdrawing the existing product from the market and introduce a new version of product. For example, in the middle of 2009, the Boston Beer withdrew the old version of product called Utopias in the market and introduce new version of Utopias. According to the maker of the Boston Beer Samuel Adam, the life cycle of the company product is average of 2 years, and the major reason is that the company is committed to enhance innovation of all its products. The strategies to employ this are by testing them under different name with different brand labels. (Annual report).

Operational  model
Operational model of the Boston Beer company involves providing quality products all the time in order to be competitive in the brewing sector. Typically, the major operation of the company is to enhance aggressive market of its products at a lower price in order to beat its competitors. In addition, the company center on the provision of better beer that enhance the company image. Typically, by providing the quality products, the company business operational model is to increase the revenue while reducing operational costs. This is reflected from the financial statement of company where the operating expenses reduced from 2006 to 2008. In 2006, the company operating expenses was 47.8. In 2007, it was 44.6 and in 2008 the operating expenses was 42.7. (Annual Report).

Molson-Coors.
Operational model
The operational model of Molson-Coors revolves around excelling in the business conduct of the company. The business nature of the company is committed to increase competitive advantages in order to achieve high performances and positive culture with respect to quality, creativity, and passion. The company operation also revolves in integrity which includes commitment to be ethical company. The company is also committed in producing quality products for its customers as well as excelling in its business operations. The company also centers  on creativity and to be excel in all its operations. (Annual Report).

ife cycle
The life cycle Molson-Coors is to design products that are environmental friendly. Typically, the company is dedicated in producing beer that does not have certified organic beer. The company also ensures that there is improvement in packaging to ensure that the company enhances bottles green. (Greenopia).

AbInbev
The AbInbev is a biggest largest brewing company globally, and is also enjoying a leading position in the five consumer products. Typically, the company produces over 200 brands.

Operational model
The company operational model involves Cost-to-Serve (CTS) that involves measuring solution to enhance quality products. The company operational model also revolves around Time Driven Activity and Based Costing (TDABC) that involves in allocating cost with special emphasis to products. Thus, the company operation model is also to streamline its operation in order to increase revenue. (QPR).

Life cycle
To enhance quality of its products, the company adopt slow life cycle for its products. The company employs these strategies to enhance viability of company products in the market. Typically, the life cycle for the company products is average of 10 years. (QPR).