Increasingly, multinational corporations (MNCs) nolonger s.docx

I
ncreasingly, multinational corporations (MNCs) no
longer simply view emerging countries as manufactur-
ing bases; instead, they recognize their market poten-
tial and have begun to develop firm strategies that suit
these unfamiliar and turbulent host country environ-
ments (Luo and Park 2001; Tan and Litschert 1994).
This conjecture is consistent with the traditional
environment–strategy–performance framework, which
suggests that a firm must be able to scan and make sense
of its external environments and then identify strategy
to align with such external conditions for success (e.g.,
Child 1972; Miller and Friesen 1983). Previous research
has demonstrated that different strategies (e.g., tech-
nology transfer) are required for MNC subsidiaries to
overcome a wide range of external pressures arising
from host country markets (Cui, Griffith, and Cavusgil
2005; Cui et al. 2006).
Despite the significant contributions of prior research
with regard to the environment–strategy–performance
framework (e.g., Luo and Park 2001), studies examin-
ing marketing strategy that foreign firms can deploy in
their host countries are inadequate. Although the litera-
58 Journal of International Marketing
Journal of International Marketing
©2010, American Marketing Association

Vol. 18, No. 4, 2010, pp. 58–73
ISSN 1069-0031X (print) 1547-7215 (electronic)
Extending the Environment–Strategy–
Performance Framework: The Roles
of Multinational Corporation Network
Strength, Market Responsiveness, and
Product Innovation
Ruby P. Lee
ABSTRACT
The purpose of this study is to extend the traditional
environment–strategy–performance framework by including net-
work theory to examine when a foreign firm can use its
multinational corporation (MNC) network strength to buffer
market turbulence and technological turbulence and when the
foreign firm can deploy it to support the influences of
marketing strategic postures (i.e., market responsiveness and
product innovation) on firm performance. The author
tests the hypotheses on data collected from 140 foreign firms in
China. Although prior research has demonstrated that
firms often use multiple strategies and resources to cope with
environmental forces, the findings illustrate that different
environmental segments have unequal bearings on market
responsiveness, product innovation, and MNC network
strength. In addition, despite the direct positive influences of
individual marketing strategic postures and MNC network
strength on firm performance, their combined effects are mixed.
The author concludes with a discussion of the implica-
tions of these results for research and practice.
Keywords: network strength, market responsiveness, product
innovation, environmental forces, China

Ruby P. Lee is Associate Professor of Marketing, College of
Business, The Florida State University (e-mail
[email protected]).
Environment–Strategy–Performance Framework 59
ture suggests that market responsiveness and product
innovation are two particularly critical strategic pos-
tures in international marketing, research has not exam-
ined these simultaneously in one study. A foreign firm
that reacts in a timely manner to local customer needs
and develops new markets faster than its competitors in
a host country (defined as market responsiveness) has a
vital marketing strategy for survival (Lee, Chen, and Lu
2009; Luo 2001). Furthermore, because emerging mar-
kets such as China are likely the central battlefields of
MNCs across the globe, the foreign firm must adopt a
more proactive marketing strategic posture (i.e., prod-
uct innovation). By introducing more novel and distin-
guishable products than its rivals, through product
innovation strategy, the foreign firm should stay
competitive in its host country (Li and Atuahene-Gima
2001; Zhang, Di Benedetto, and Hoenig 2009). Thus,
foreign firms should concurrently examine these two
marketing strategic postures along with their perform-
ance implications and further investigate the effective-
ness of each in coping with environmental turbulences
in their local markets.
In addition, although an MNC network provides criti-
cal resources to support the strategic initiatives of an
MNC’s headquarters and subsidiaries (Kogut and Zan-
der 1993; Lee et al. 2008), little empirical evidence
exists regarding the strength of such a network and its

role in the relationship between strategy and firm per-
formance. An MNC network comprises the MNC’s
headquarters, its subsidiaries, and the extent of rela-
tional ties formed among these various business units
within the MNC network, referred to as MNC network
strength. It is also instrumental in gaining access to
social capital and knowledge, among other resources
(Lee et al. 2008). With the growing importance for for-
eign firms to manage overseas markets independently,
their success requires support from their connections
with other MNC units to overcome their liabilities of
foreignness (Andersson, Forsgren, and Holm 2002;
Bartlett and Ghoshal 1989; Ghoshal and Bartlett 1990).
The current study proposes that by taking into account
the direct and indirect influences of MNC network
strength, an MNC’s foreign subsidiary can understand
the benefits of relying on its MNC network strength.
Although this study views knowledge in a general sense
rather than a specific kind made available in an MNC
network, it maintains that network strength serves as an
important source for a foreign firm to tap into a diverse
set of knowledge and information embedded in its
MNC network.
Together, this research addresses the following unan-
swered questions: (1) Which marketing strategic pos-
tures can better deal with environmental turbulence in a
host country? (2) When should foreign firms use their
MNC network strength to obtain resources from their
MNC networks to deal with host country environmen-
tal turbulence? and (3) To what extent could these for-
eign firms use MNC network strength to reinforce the
impact of marketing strategic postures on firm perform-
ance? In answering these questions, this study extends
the traditional environment–strategy–performance
framework (Child 1972; Porter 1991; Tan and Litschert

1994) by applying the complementary insights of the
international marketing strategy and network literature.
The synthesis of the environment–strategy–performance
framework and network theory enables researchers to
expand the boundary conditions for which potential
resources derived through MNC network strength can
be used to handle environmental turbulence and support
a foreign firm’s marketing strategy and performance in
its host country.
The following sections discuss a conceptual framework
that links together environmental forces, marketing
strategic postures, MNC network strength, and firm
performance. Then, a set of hypotheses is developed and
tested on the survey data collected from senior execu-
tives of 140 foreign firms in China. The results are pre-
sented, followed by a discussion of their implications
and directions for further research.
CONCEPTUAL FRAMEWORK AND
HYPOTHESES
The traditional environment–strategy–performance
framework suggests that changes in environmental tur-
bulence cause a firm to adopt different strategies for the
purpose of defending its competitive advantage and,
ultimately, firm performance (Child 1972; Porter 1991;
Tan and Litschert 1994). The firm is viewed as an infor-
mation processor that has strong cognitive abilities to
scan and interpret threats and opportunities arising
from external environments, which then lead to strate-
gic decisions (Daft and Weick 1984; Weick 1979).
Because of its criticality, the strategic choice of a firm
remains one of the central focuses in organizational
research (e.g., DeSarbo et al. 2005).

In the literature, market responsiveness and product
innovation have been suggested as important marketing
strategic postures for MNCs’ survival and organic
growth in their host countries (Doz and Prahalad 1991;
Porter 1991; Prahalad and Doz 1987). To survive, a for-
eign firm must at least be able to respond quickly to
local customer needs and competitor actions, emphasiz-
ing the importance of market responsiveness (Lee, Chen,
and Lu 2009; Luo 2001). Conversely, product innova-
tion strategy demonstrates a firm’s long-term commit-
ment to the creation of new products that suit current
and future needs (Li and Atuahene-Gima 2001). Such
strategy that emphasizes offering new and distinguish-
able products from those of major competitors is a more
proactive one for a foreign firm to pursue organic
growth (Zhang, Di Benedetto, and Hoenig 2009).
Building on the environment–strategy–performance
framework, Figure 1 shows that a foreign firm’s market-
ing strategic postures (i.e., market responsiveness and
product innovation) and MNC network strength are
means to deal with two types of environmental turbu-
lence; therefore, they influence the firm’s performance in
its host country. Because MNC network strength may
provide additional resources to support the foreign
firm’s host country marketing strategic postures, MNC
network strength likely reinforces the positive influences
of market responsiveness and product innovation on
foreign firm performance.
Environmental Turbulence and Marketing

Strategic Postures
Strategic choice theorists have long suggested that firms
actively manage and control their strategy such that they
can adapt to environmental forces and remain competi-
tive in the market (Child 1972; Miller and Friesen 1983).
This stream of research places emphasis on a firm’s abi-
lity to cope with the direct challenges of competitive
forces (Porter 1991). In particular, the literature suggests
that market and technological environments are two pro-
found forces influencing MNCs (e.g., Lee et al. 2008).
Market turbulence refers to the rate of change in cus-
tomer preferences and competitive actions in a host
country (Cui et al. 2006; Lee et al. 2008). It determines
how foreign firms interpret local market information
and knowledge generated from their major competitors
and customers and then act on and exploit any oppor-
tunities presented in such unpredictable environmental
changes. In the presence of a turbulent market environ-
ment, such as more intensive competition and more fluc-
tuated demand, it is important that the foreign firm can
sense its own host market and take actions faster than
its rival firms in response to different and subtle changes
in its local market (Grein, Craig, and Takada 2001; Luo
2001). Longer delays in responding to host market con-
Figure 1. Conceptual Model
Market
turbulence
H1a
H2a

H2b
H3b
H3a
H5b
H5a
H5c
H4b
H4a
H1b
Market
responsiveness
MNC
network
strength
Product
innovation
Technological
turbulence
Firm
performance

ditions may cause the foreign firm to lose its local mar-
ket position (Grein, Craig, and Takada 2001). As such,
market responsiveness is a desirable strategy because it
requires the foreign firm to apply its existing knowledge
to react to changing local market conditions (Lee, Chen,
and Lu 2009). When market turbulence increases, the
foreign firm is more likely to increase its market respon-
siveness accordingly.
H1a: Market turbulence is positively related to
market responsiveness.
Similar to market turbulence, technological turbulence
may call for equal attention to foreign firms (Lee et al.
2008). Technological turbulence refers to the rate of
change in new products and processes as a result of pro-
liferating technology in a given host country market
(Jaworski and Kohli 1993; Tushman and Anderson
1986). When the foreign firm faces a high level of
volatility, change, and unpredictability related to the
technology of its host country, market responsiveness
that emphasizes timely response to local competitors
and customers through the use of existing knowledge
could be an attractive marketing strategy (Lee, Chen,
and Lu 2009). Frequent changes in technology can make
a firm’s product obsolete faster. However, by exploiting
alternative markets for its existing products faster than
its counterparts, the foreign firm can extend its product
life cycle to the untapped markets in its host country.
Despite being more reactive, this strategy provides a
more cost-effective and speedy means for the foreign
firm to overcome the challenges associated with fre-
quent updates of new technology in its local market.
H1b: Technological turbulence is positively related

to market responsiveness.
Apart from local market responsiveness, the foreign
firm may focus on product innovation as an alternative
marketing strategic posture to counteract environmental
pressures proactively. Product innovation reflects the
extent to which a foreign firm can introduce more novel
and distinctive products than its competitors in its host
country (Li and Atuahene-Gima 2001; Zhang, Di
Benedetto, and Hoenig 2009) and is considered a criti-
cal strategy to support international market entry (e.g.,
Lages, Silva, and Styles 2009) and organic growth
(Porter 1991).
In the literature, product innovation is a strategy associ-
ated with knowledge creation rather than knowledge
application, as in the case of market responsiveness
(Nonaka 1994). Researchers have demonstrated that
firms that adopt product innovation strategy can reduce
the undesirable effects from uncertain environments (Li
and Atuahene-Gima 2001). In other words, this strate-
gic posture should be useful to manage both market and
technological turbulence. When rapid changes of cus-
tomer preferences and competition exist, focusing on
product innovation enables the foreign firm to offer
novel products that not only cater to the needs of local
customers but are distinguishable from its competitors,
making its product offerings more attractive in the host
market (Li and Atuahene-Gima 2001). Product innova-
tion strategy also enables the foreign firm to redefine the
needs of customers, change the rules of competition, and
expand its market for growth (Wind and Mahajan
1997), providing a more proactive strategy to cope with
market turbulence.

product innovation.
Similarly, frequent updates and changes in technology
become a norm in a volatile technological environment.
A foreign firm needs to recognize that it operates in a
host country where sudden and unpredictable changes
in technological environment can make its current prod-
ucts obsolete quickly. As such, to stay abreast of the
recurrent changes in technology, continuous commit-
ments to product innovation may help the foreign firm
break through industry norms and perhaps redefine
technological standards in its host market (e.g., Eisen-
hardt and Tabrizi 1995), providing a more aggressive
approach to offset technological turbulence. Thus:
to product innovation.
Environmental Turbulence and MNC Network
Strength
Within an MNC, the connections between foreign units
constitute a strategic network (Inkpen and Tsang 2005).
This so-called MNC network, which spans across orga-
nizational boundaries, enables the network units to
interact with one another to exchange ideas and share
resources that can facilitate their individual strategic
planning and implementation (Andersson, Forsgren,
and Holm 2007; Bartlett and Ghoshal 1989). Although
an established MNC network does not guarantee net-
work or knowledge diversity, a large body of research
argues that a network provides idiosyncratic and inimi-

table resources to network members (Andersson, Fors-
gren, and Holm 2007; Nohria and Ghoshal 1997).
When network strength (i.e., the extent of relational ties
formed between MNC units) increases, a focal foreign
firm can increase the likelihood that it will obtain a
wider range of knowledge from other MNC units (Lee
et al. 2008).
Some researchers have shown that social capital, includ-
ing trust and information sharing arising from a set of
cohesive connections between firms, fosters cooperation
and learning, which is essential to organizational success
(Burt 1997; Tsai 2001). A high level of network strength
implies more closely tied relationships between network
members, and social capital likely results from such con-
nected social structure (Nahapiet and Ghoshal 1998).
In line with this, Inkpen and Tsang (2005, p. 160)
observe that in an MNC, “organizational social capital
is readily available between network members and the
development of individual social capital will help
knowledge transfer or sharing.” Consistently, prior
research has shown that additional resources (e.g.,
market information, technical know-how) may be made
available to different foreign units belonging to the same
network (Nohria and Ghoshal 1997). Thus, although
an MNC likely comprises a group of geographically
dispersed subsidiaries, strong MNC network strength
that promotes more communication and interactions
among subsidiaries can overcome the geographic
distance between them (Hansen and Løvås 2004).
When stronger relational ties and continuous inter-
actions with other overseas units of the same MNC
network are maintained, the foreign firm is more likely
to obtain resources it lacks from the network to deal
with its host environmental challenges (e.g., Andersson,
Forsgren, and Holm 2002; Gulati, Nohria, and Zaheer

2000).
Specifically, an MNC’s foreign units that are located
across the globe may provide a significant source of
multiple market knowledge (Inkpen and Tsang 2005).
Maintaining closer relationships with other foreign
units enables the foreign firm to obtain diverse informa-
tion from other MNC units that can guide the foreign
firm to evaluate its particular market condition more
effectively (Garcia-Pont, Canales, and Noboa 2009).
Thus, when the local market is more turbulent, it moti-
vates the foreign firm to increase its network strength,
which may help the firm obtain a wider range of infor-
mation about different marketplaces from other MNC
units to help identify and solve its own local market
problems (Argote and Ingram 2000).
MNC network strength.
Different from market turbulence, technological turbu-
lence is characterized by the frequent and volatile
changes of technologies and emphasizes the change in
the form of know-how and degree of innovation (Tush-
man and Anderson 1986). Extant research suggests that
unpredictable changes in technological environments
can make the foreign firm’s existing technology obsolete
faster (Hansen and Løvås 2004). Therefore, the foreign
firm must have a wider scope of knowledge, such as
technical know-how, to understand and handle frequent
technological changes. In other words, a highly turbu-
lent technological environment creates more obstacles
for the foreign firm to rely on itself to encounter techno-
logical challenges in its host market (Hansen and Løvås
2004). As a result, similar to market turbulence, the
presence of high technological turbulence encourages

the foreign firm to increase its relational ties with other
MNC units for the purpose of obtaining a wider range
of knowledge to help identify unique product attributes
and new product concepts appropriate to its local mar-
ket (Hansen and Løvås 2004; Hansen, Mors, and Løvås
2005).
to MNC network strength.
Performance Implications of Marketing
Strategic Postures
In the context of international marketing, the success
of an MNC’s foreign operations lies in its market
responsiveness to host environments (Prahalad and
Doz 1987). Consistent with extant research showing
that timely responses to environmental challenges and
opportunities are often associated with positive
performance outcomes, being responsive to local
markets should also increase a foreign firm’s perform-
ance (e.g., Luo 2001). Specifically, a foreign firm’s
ability to respond to its local market is partly subject
to its exploitation competence. Exploitation is “the
refinement and extension of existing competencies,
technologies, and paradigms” (March 1991, p. 85). The
foreign firm that can exploit its existing resources to
respond to its customer needs and competitor actions
more effectively, and extend its current technology to
appeal to its new host market faster than rivals, should
have more positive performance (Grein, Craig, and
Takada 2001).

H4a: Market responsiveness is positively related to
firm performance.
In addition to market responsiveness, previous research
has suggested that product innovation is an alternative
marketing strategy that promotes firm performance
(e.g., Li and Atuahene-Gima 2001). A literature review
shows that product innovation strategy comes with
multiple benefits. For example, product innovation
signals a firm’s commitment to continuous development
of novel ideas and products, enabling the firm to profit
from higher market returns (Lee and Chen 2009).
In addition, product innovation enables the foreign firm
to preempt the market, occupy strategic resources, and
create entry barriers (Lieberman and Montgomery
1998). Offering new products that can differentiate
themselves from their major competitors and potentially
increase market demands should lead to positive
firm performance.
H4b: Product innovation is positively related to
firm performance.
Performance Implications of MNC Network
Strength
Previous research has suggested that knowledge from
different foreign units within the MNC network is
richer than what an individual foreign firm alone can
derive (Inkpen and Tsang 2005). Broader knowledge
gives the focal firm greater flexibility and more ideas to
respond to local challenges. Despite the cultural and lan-
guage barriers that may arise between MNC foreign

units (Luo and Shenkar 2006), as previous research has
indicated, when entities are closely connected, business
units or firms are motivated to exchange ideas and share
resources (Tsai 2001; Uzzi 1999). Stronger network
strength enables different foreign units to overcome pos-
sible communication barriers, making synergistic bene-
fits such as complementary or new knowledge likely to
be developed (Nohria and Ghoshal 1997). Thus, when
MNC network strength promotes more knowledge
pooling, which could increase the foreign firm’s compe-
tencies, positive performance outcomes should result
(e.g., Lee et al. 2008; Luo et al. 2004).
H5a: MNC network strength is positively related
to firm performance.
Furthermore, access to more knowledge and informa-
tion through MNC network strength not only induces a
direct effect on firm performance but also bolsters the
positive effects of marketing strategic postures on firm
performance. Increases in MNC network strength help
the foreign firm obtain more resources from other for-
eign subsidiaries and its headquarters to reinforce its
responsiveness to local environments (Hansen and
Nohria 2004). In particular, firms with stronger ties are
associated with higher levels of trust, which facilitate
market information exchange (Tsai and Ghoshal 1998).
Because more diverse information and broader knowl-
edge contained in the MNC network may become avail-
able to the focal foreign firm, it gives the firm more
ideas to identify its local market trends and opportuni-
ties and determine which current product attributes are
favorable in its local market (Roth et al. 2009). Informa-
tion sharing enables the foreign firm to be more respon-
sive to its local market, improving its understanding of

market trends. Thus, MNC network strength should
reinforce the positive impact of market responsiveness
on firm performance.
H5b: MNC network strength positively moderates
the impact of market responsiveness on firm
performance.
Similarly, MNC network strength should make the
effect of product innovation strategy on firm perform-
ance stronger. Product innovation involves substantial
technical know-how to make products new and creative
(Eisenhardt and Tabrizi 1995). Thus, it requires a for-
eign firm to have access to a wide range of updated tech-
nology. When the foreign firm and other units within
the MNC network are closely tied, they are likely to
coordinate and communicate with each other more
effectively and accurately, thereby facilitating knowl-
edge assimilation and transfer (Inkpen and Tsang 2005).
Because knowledge about product developments can be
more technical and difficult to assimilate, strong ties can
increase mutual sharing and interactions during the
process of knowledge assimilation and application
(Eisenhardt and Tabrizi 1995; Hansen and Løvås 2004),
thus strengthening the impact of product innovation on
firm performance.
H5c: MNC network strength positively moderates
the impact of product innovation on firm
performance.
METHOD
Sample and Data Collection
This research investigates MNCs’ foreign operations in
China, one of the fast-growing emerging economies that

demand foreign firms to have different marketing strate-
gic postures to cope with turbulent host country envi-
ronments (Luo and Park 2001; Tan and Litschert 1994).
As a result of domestic market saturation, MNCs from
developed countries continue to expand to foreign mar-
kets, such as China, by setting up wholly owned sub-
sidiaries or joint ventures. Because the Chinese market is
significantly different from Western economies, foreign
firms are likely to develop their own strategies and
resources to cope with various local environmental
forces in their host country. Thus, China provides a
dynamic, yet appropriate setting to test the proposed
theory.
The sampling frame of this study was based on a list
provided by a leading university in Shanghai. The list
comprised MBA alumni who had extensive work
experience and were employed currently by either for-
eign wholly owned subsidiaries or joint ventures in high-
technology industries. This study uses the term “foreign
firms” to reflect both types of ownerships. Similar to
recent organizational research conducted in China, data
were collected on-site (e.g., Li and Atuahene-Gima
2001). Interviewers contacted each foreign firm on the
list by telephone to identify a key informant who was
knowledgeable about his or her local operations from
each firm, verify the address, and set up appointments to
drop off and pick up the survey. All respondents pro-
vided their responses within prescheduled pickup dates;
thus, no early or late responses are reported in this
study. Of 300 firms contacted, 140 completed the

survey.
Among the respondent firms, 23.6% were partially
owned ventures and 76.4% were wholly owned sub-
sidiaries; their headquarters were located in the United
States (53%), Europe (34%), Asia (10%), and others
(3%), comparable to the foreign direct investment trend
the People’s Republic of China Ministry of Commerce
reported in 2006, a year before data collection. These
foreign firms represent a wide range of high-technology
industries, including telecommunications, software
development, and information technology, and had
operated for an average of 14 years in China.
Response Bias and Validity Checks
To verify the validity of the data, multiple business
directories and other sources were used to acquire nec-
essary secondary data, including firm age, sales, and the
number of employees, so that nonrespondent firms
could be compared with respondent firms. There were
no significant differences between these two groups on
the previously mentioned demographic variables, sug-
gesting that nonresponse bias unlikely existed. Next, the
qualification of key informants was checked. The survey
directed respondents to report on their positions and
years employed with their firm. Approximately 90% of
the respondents had worked for their company for an
average of five years and were senior executives familiar
with their local operations.
Questionnaire Design and Development
Each of the individual construct operationalizations was
drawn from the appropriate prior research. Because the

initial questionnaire was constructed in English, two
bilingual graduate students fluent in both English and
Chinese translated the questionnaire in Chinese and
back-translate it in English. Two bilingual academic
researchers then compared the back-translated question-
naire with the original English version and found no
major differences. As a pretest, five senior executives
who were familiar with their firms’ operations in China
evaluated the Chinese instrument to ensure that the
model was appropriately bounded. The pretest respon-
dents were extensively debriefed following survey com-
pletion. Then, the survey instrument was refined on the
basis of their comments. Finally, the survey was admin-
istered to the preidentified respondents, who were asked
to evaluate their host country environments and their
operations in China.
Measures
Market turbulence was conceptualized as the extent of
instability in a host country marketplace. In line with
previous studies (Lee et al. 2008), a four-item, seven-
point Likert scale was used to measure the level of host
country market turbulence. The four items were as fol-
lows: (1) “New customers tend to have product-related
needs that are different from those of our …
Integrated Project Plan
Urban Bicycle GoToMarket Project - Group 5

Group Member Names:
Table of Contents
1.0 Version Control / Summary of
Changes..................................................................................
..4
2.0 Scope
Management............................................................................
........................................5
2.1 Scope
Statement................................................................................
.............................5
2.2 Summary of
WBS.......................................................................................
...................7
2.3 Stakeholder
Register..................................................................................
....................9
2.4 Scope Baseline
Statement................................................................................
............11
3.0 Schedule & Time
Management............................................................................
...................12
3.1 Milestone
List.........................................................................................
.....................12 3.2 Summary of Project
Schedule.................................................................................
.....12
3.3 Schedule Baseline
Statement................................................................................
.......14
4.0 Communication
Plan........................................................................................

........................15
4.1 Communication
Plan........................................................................................
............16
4.2 Communication
Matrix.....................................................................................
...........16
5.0 Cost & Budget
Management............................................................................
........................18
5.1 Initial Cost Statement & Cost
Estimate.......................................................................18
5.2 High Level Cost
Estimates………………………..…………………………………19
5.3 Cost Baseline
Statement………………………………..…………………………....
20
5.4 Financial
Report…………………………………………………………………
…...21
5.5 Contingency Reserve Policy &
Request……………………………………………..22
6.0 Risk
Management…………………………………………………………
……………...….23
6.1 Risk Management
Plan………………………………………………………………23
6.2 Risk
Register………....……………………………………………………
…………27
7.0 Quality Management
……………………………………....………………………………...
28
Plan……....……………………………………………………28
7.2 Quality

Metrics………………………………………………………………..
……..28
8.0 Integrated Change Control Policy & Change Request
Template…………….…....………...33
8.1 Change Control Policy
………………………………………………………………33
8.2 Change Request Form
...……………………………………………………………..40
References..............................................................................
........................................................42
1.0 Summary of Changes
Version Number
Week
Team Leader Name
New Sections Added
Changes Made to Previous Sections
1.0
1-2
Chen-Hsiao Shih
Summary of WBS and Stakeholder Register issued as a separate
document
None
2.0
3-4
Federico Boni
2.0 Scope Management, 3.0 Schedule & Time Management, and
5.0 Cost & Budget Management
None
3.0
5-6
Chen-Fang Hung
4.0 Communication Plan, Scope and Schedule Baseline
Statements

-Updated 3.2 Summary of Project Schedule
-Updated Cost Estimates by cutting down the labor costs
4.0
7-8
Nan Xiang
6.0 Risk Management Plan including the Risk Register
7.0 Quality Management Plan & Statement
Adding Contingency Reserve Policy & Request in 5.0 Cost &
Budget Management
10.0 Integrated Change Control Process & Change Request
Form
Updated the Project Schedule baseline and cost estimates from
MS project adjustment.
2.0 Scope Management
2.1 Scope Statement
Project Name: Urban Bicycle GoToMarket Project-Group 5
1. Project Scope
Project Objectives will be,
· The stretch goal will be to sell 200 bikes in total by December
31, 2020
· To sell 50 The Don bikes by December 31, 2020
· To reach out to 15+ more new target companies and charity
organizations to implement wellness programs
· To develop 3+ more featured online workshops regarding bike
product promotions
In order to accomplish these goals, our major deliverables
include,
1. Project Planning
2. Target Organizations
3. Event Design and Production
4. Outreach Event Implementation
5. Customer Satisfaction Report

2. High Level Customer/ Product Requirements
Business Requirements:
· The stretch goal is to sell 200 bikes in total or sell 50 The Don
by December 31, 2020
· Successfully implement outreach wellness programs to target
bike-friendly business companies and community organizations
Functional Requirements:
· Reach out to large scale corporates in technology, banking, or
accounting fields such as Salesforce, Hubspot, Red Hat, Inc. to
seek collaborations
· Cooperate with Boston local community organizations such as
the Charles River Wheelers or cycling charity organizations like
the Ride to Conquer Cancer as a distributor of cycling
accessories and essentials
· Design presentations and workshops featuring our bike
products and cycling accessories
· Recruit speakers and certificated fitness trainers to host
outreach programs and workshops
· Conduct and analyze customer satisfaction report and sales
report
· Revise the content of the events with negative sales report
3. User acceptance criteria
The customer satisfaction survey (CSAT) will be designed by
following the metrics of Overall Satisfaction Measure and a
series of Attribute Satisfaction Measurements, and will be
distributed for participants at the end of the events. Only
responses of 4 (satisfied) and 5 (very satisfied) are included in
the calculation as positive feedback. The calculation will be
(Number of satisfied customers (4 and 5) / Number of survey
responses) x 100 = % of satisfied customers.
4. Project boundaries or exclusions
The geographic target market for this project plan will be more
focused on local Boston and the Northeast USA. Long-term
target market plans in Australia will not be included in this

document.
5. Project constraints
· Scope: The geographic market is more focused on Northeast
USA
· Time: The sales goals should be accomplished in the end of
this year
· Risk: The global pandemic might affect the customer
engagement in workshops and outreach events
· Cost: The sponsor didn’t assign a specific amount of the
budget. We conducted our cost estimation based on the
calculation in MS Project
2.2 Summary of WBS
The summary of WBS below is retrieved from MS project
2.3 Stakeholder Register
Stakeholder Position/Role
Type of Stakeholders
Stakeholder Expectation(s)
Stakeholder Interest
Influence on Project Result
Stakeholder Management Strategies
Position in the organization or role in project
Internal or External
High level needs or expectations for the project and/or product
High/ Med/Low
Supporter/Opposed/ Neutral
Strategies and tactics to maximize positive stakeholder
influence and minimize or neutralize negative stakeholder
influence.
CEO,

Gavin Brauer
Internal
High level expectations for the success of the project
High
Supporter
-Regular updating meetings with project teams
Target companies,
Such as Salesforce and Red Hat, Inc.
External
High level expectations for the quality of the products and bike
supplies
High
Supporter
-Implement the wellness programs
-Provide updated presentations about the products
Charity Ride Teams
(The Ride to Conquer Cancer)
External
High level expectations for the quality of the products and bike
supplies
High
Supporter
-Provide updated presentations about the products
-Regular meetings in order to know what kinds of supplies they
need for the rides
Project Manager
Internal
High level expectation
-Completion of the project with quality and success
High
Supporter
-Check the working state regularly
Project Team Members
Internal
High level expectation of the project objective which can show

the ability
Medium
Supporter
-Check the working state regularly
Coaches of Tiny Habits
Internal
Low expectation
-They are doing the regular work
Low
Neutral
-Check the working state twice a month with the data of
challenge and feedback from them and customers
Customers
External
High expectations for the value of the bike and high satisfaction
for overall the quality of the product.
High
Supporter
-Provide specific information on the bikes to the customers
-Market research to determine the customer’s expectations
Government
External
External High level expectations of the quality of the product
and meet safety standards for customers.
Low
Neutral
-Check regulations and specifications for product safety
standards
Linkedin Connections
External
Medium level expectations for the updates of the products
Medium
Neutral
-As potential resources for outreach programs, we should do
market research and implement programs or presentations of
what they need

-As regular clients, we should regularly update the newest
information on our products
Carrier Company
External
Low level expectation of the project and take responsibility to
transport the bike
Medium
Neutral
-Check the failure rate of bikes during the shipping
HR Manager Comment by Chen-Hsiao Shih: We added three
stakeholders based on the resources in our MS project
Internal
Low level expectation of the project and take the responsibility
to interview the candidates of online workshop’ speaker
Medium
Supporter
- Updating the state of interview with the manager frequently
Speaker Comment by Chen-Hsiao Shih: We added three
stakeholders based on the resources in our MS project
External
Medium level expectation of the project because the good result
of the workshop can build the reputation of the speaker.
Medium
Supporter
- Communicating with the speaker frequently and check the
content of the presentation
Event Planning Agency Comment by Chen-Hsiao Shih: We
added three stakeholders based on the resources in our MS
project
External
Medium level expectation of the project because the agency can
earn the reputation from it.
Medium
Supporter
- Communicate with the agency frequently when we work
together.

2.4 Scope Baseline Statement Comment by Chen-Fang Hung:
We added the section of the scope baseline statement after
setting the baseline in our MS project
This project started on April 20th, 2020 and will end on
December 23rd, 2020 with a 177-day total baseline duration and
$17,621.99 as the total baseline cost. This project is created to
implement 15+ outreach events at bicycle-friendly coperates in
technology, banking and accounting fields, local communities,
and charities in major cities in Northeastern America/Canada
such as Boston, New York, and Toronto. The scope of the
project will be to successfully implement cycling wellness
programs to promote the bikes (1~2 events per month) and to
reach the sale goal of selling 50 the Don at the end of
December. Our scope baseline will be adjusted in the future
based on the monthly sales reports and the changes of the
requirements which will be made by the sponsor. The baseline
will be updated after every project review meeting with the
sponsor at milestones.
3.0 Schedule & Time Management
3.1 Milestone List
The milestones of this project are listed below and also include
the expected completion date of each milestone.
Milestone
Name
Date
Description
MS1 (1.3.10)
Project Plan Completed
8/10/2020
Completed the project planning phase
MSda2 (1.4.1.4)
Target Organization Terminated
9/11/2020

Contracted with the ideal business companies, charities, and
community organizations for collaboration
MS3 (1.4.2.3)
Event Design Concluded
10/2/2020
Accomplished the event design and preparation
MS4 (1.4.3.4)
Outreach event implementation Completed
10/28/2020
Completed the outreach events, including workshops, wellness
programs, and charity rides
MS5 (1.5.2.3)
Customer Satisfaction Report Concluded
11/18/2020
Completed the analysis of customer satisfaction survey report
MS6 (1.6.4)
Project Closed
12/23/2021
Completed the Urban Bicycle GoToMarket Project
3.2 Summary of Project Schedule
The table below is the summary of the schedule for the high-
level deliverables of this project. The project started on April
20th, 2020, and is expected to be completed on December 25th,
2020. This project will take 249 days to finish (the duration of
the project is 179 days).
Deliverable
Duration
Beg. Date
End Date
1.1 Staffing
3 days
04/20/2020
04/23/2020
1.2.1 Project Charter

7.5 days
04/23/2020
05/05/2020
1.2.2 Stakeholder Management Plan
13.5 days
05/05/2020
05/22/2020
1.3.1 Scope Management Planning
12 days
05/22/2020
06/09/2020
1.3.2 Schedule Management Planning
10.5 days
06/09/2020
06/24/2020
1.3.3 Cost Management Planning
10 days
06/16/2020
06/30/2020
1.3.4 Quality Management
5 days
06/30/2020
07/07/2020
1.3.5 Recourse Management
4 days
07/07/2020
07/13/2020
1.3.6 Communication Management
2 days
07/13/2020
07/15/2020
1.3.7 Risk Management
9 days
07/15/2020
07/28/2020
1.3.8 Procurement Management

4 days
07/28/2020
08/03/2020
1.3.9 Change Management
5 days
08/03/2020
08/10/2020
1.4.1 Target Organization
29 days
08/10/2020
09/18/2020
1.4.2 Event Design
40.5 days
08/10/2020
10/06/2020
1.4.3 Event Implementation
19 days
10/06/2020
11/02/2020
1.5.1 Project Performance Report
9 days
10/30/2020
11/12/2020
1.5.2 Customer Satisfaction Report
6.5 days
11/12/2020
11/20/2020
1.5.3 Project Quality
8 days
11/20/2020
12/02/2020
1.6.1 Project Closure Report
10 days
12/02/2020
12/16/2020
1.6.2 Lessons Learned

6 days
12/16/2020
12/24/2020
1.6.3 Project Sign-off
1 days
12/24/2020
12/25/2020
3.3 Schedule Baseline Statement
For this project, the schedule baseline is set as the start date of
April 20, 2020, and the date of December 25, 2020. The project
duration is 179 days. The project schedule baseline affected by
project scope and anything that changed or adjusted to the
project scope will impact on project schedule baseline. The
project manager and project sponsors have authority to approve
and evaluate any changes requests and also to re-baselines if the
schedule has significantly impacted by project scope changes.
The example conditions of project scope changed and delayed
critical path tasks will be impacted on schedule baseline, and
the project schedule baseline will only be updated based on
approval given from the project manager and project sponsor.
4.0 Communication Plan
4.1 Communication Plan
The communication approaches that we have used for operating
this project include emails, virtual conference calls, and
message channels. Message applications such as Whatsapp are
used by the project manager to assign, track, and update the
progress status of daily tasks. The messages will be sent,
received, and coordinated between the project manager and the
project team members. Virtual conference calls will be a more
formal communication approach that is used by the project
manager, the project team, the stakeholders, and even the
sponsor. These meetings are hosted to let the project manager
and project team demonstrate a certain status of the project to

the sponsor and the stakeholders, to gather their feedback, to
discuss the next step of the project. The messages in the
conference calls will be sent by the project manager,
coordinated between the project manager, the project team, and
the stakeholders, and eventually approved by the sponsor. After
the project status meetings/reviews, documented project status
reports will also be created by the project manager and sent to
the stakeholders and team members in order to ensure everyone
could receive the information.
4.2 Communication Matrix (by Method)
Communication Type
Frequency
Goals
Owner
Audience
By Email
Project Status Report
Weekly
-Review the status of the project, including schedule, budget,
and scope
-Discuss the upcoming tasks and potential risks
Project manager
-Stakeholders
-Project team
Customer Satisfaction Survey
Once the event is over
-Distribute the survey to all attendees to gather feedback
Project manager
Event attendees/customers
Customer Satisfaction Report
Once the event is over
-Demonstrate the customers' attitudes towards the content of the
events
-Review and adjust the content of the events
Project manager

-Stakeholders
-Project team
By Face-to-face or Virtual Meetings
Kick-off Meetings
Once
-Introduce the project, the stakeholders, and the sponsor to the
project teams
-Indicate the sponsor’s the requirements and project objectives
Stakeholders
(Professors)
-Project sponsor
-Stakeholders
-Project manager
Project Team Meetings
As needed
-Review the status of the project
-Distribute weekly new tasks with teams
Project manager
Project team
Project Review
At milestones
-Review the accomplished deliverables
-Gather feedback from the sponsor
-Check in with sponsor if their requirements are achieved
Project manager
-Project team
-Sponsor
By Slack/Whatsapp Message Channel
Task Progress Updates
Daily
-Distribute tasks to team members
-Share daily progress of the accomplished tasks
Project manager
Project team

5.0 Cost & Budget Management Comment by Chen-Fang
Hung: We adjusted and updated the newest cost estimates by
cutting down the labor costs, and also revised the cost baseline
statement after receiving the professor's feedback regarding our
originally unaffordable costs
5.1 Project Cost Statement
The estimation method used to gather estimates for this project
was bottom up and top down estimation. The initial costs for the
phases was developed using the top down estimation method
because it provides a high-level estimate of what it would cost
to have each phase of the project completed, based on the
amount of effort required and the availability of resources.
The project manager is responsible for managing and reporting
on the project’s cost throughout the duration of the project.
Additionally, the project manager would use Earned Value
Management for monitoring and controlling the project cost.
The project manager is also responsible for reporting any cost
deviations to the sponsor and devising ways to get the project
back on track.
Assumptions were made on how the cost should be varied
among the project phases taking into consideration the amount
of effort that would be required to complete the work of the
different phases. For instance, the execution and monitoring &
controlling phases would require the most work effort, and as a
result would cost more, this assumption was made based on
knowledge from previous projects.
In order to determine the cost to complete the project, costs
were assigned at the work package level of the work breakdown
structure; utilizing the bottom up estimating approach. By using
the bottom up estimating method for the activities, the
estimated cost of effort for the resources to work on the project
was derived. When the estimates are made at the activity level
the cost amount rolls up to the deliverables, which enables the
project manager to determine the overall cost of the project
deliverable.
The tables below contain a breakdown of the cost estimates for

the planning and execution phases deliverables.
Monitoring & Controlling Phase Tasks
Hours By Deliverables/Tasks
Cost Estimates
Control & monitor risks
115 hrs
$980.00
Control & monitor cost
133 hrs
$1,120.00
Control & monitor schedule
130 hrs
$1,080.00
Control & monitor quality
140 hrs
$1,180.00
Totals
518 hrs
$4,360.00
Execution Phase Deliverables
Hours By Deliverables
Cost Estimates
Target Organizations
345 hrs
$1,220.00
Survey
10 hrs
$180.00
Event Design and Production
202 hrs
$3,172.00
Online workshop
70 hrs
$360.00
Wellness program

120 hrs
$2,660.00
Community Events
102 hrs
$520.00
5.2 High Level Cost Estimates
As the project proceeds and any additional costs become known,
this cost estimate will be refined and communicated to all
project stakeholders. Currently, the project is below the set
project budget, at the amount of $8,112.00. The budget for the
project is currently realistic and can be met, providing there are
no changes to the project scope, schedule and cost as these can
all increase the project budget. Resources for the deliverables
have all been assigned and the table below depicts the costs for
the high-level project deliverables.
The table below displays the high-level costs for the high-level
deliverables in the project.
Project Deliverables
Cost
Project Charter
$509.99
Stakeholder Management
$1,200.00
Project Planning
$4,360.00
Target Organizations
$1,220.00
Survey
$180.00
Event Design and Production
$3,172.00
Online workshop
$360.00
Wellness program

$2,660.00
Community Events
$520.00
Advertising
$2,000.00
Questionnaires
$100.00
Flyers
$100.00
Monitoring and Control
$4,360.00
Project Closure
$1,360.00
5.3 Cost Baseline Statement
The original cost baseline for the project was set on May 2,
2020, with a current project cost of $17,621.99 . Like the
schedule baseline, the cost baseline would also be affected by
changes to the scope baseline. Any changes made to the cost
baseline must be reviewed by the project manager and approved
by the project sponsor.
The following conditions would cause changes to the cost
baseline: padding costs, addition of resources to the project,
scope changes, delays in the completion of critical path
activities and changes to the project schedule. The cost baseline
will be adjusted in situations where more resources such as
team members are needed to help speed up the completion of
the online workshop process. The cost baseline will not be
adjusted for additional fees incurred from the vendor.
5.4 Financial Report
This report indicates all the resources that have been used in
this project and the detailed information of each such as the
specific used amount of each resource. All the resources
including labor and non-labor resources are exactly assigned to
each activity. The current cost baseline amount is $20,911.99

including the contingency reserve and this amount is calculated
by the information provided above. Comment by Chen-Fang
Hung: We updated the current cost baseline by including the
contingency reserve
5.5 Contingency Reserve Policy & Request
Contingency
In a project management environment, uncertainties often arise.
Thus, due to risks and uncertainties associated with projects,
Team 5 added a reserve amount to the estimated project cost.
This reserve amount, known as contingency, will be to absorb
the monetary impact of the risks and to prevent cost overrun.
The contingency funds are calculated on the basis from their
probability of occurrence. The cost associated with these risks
have been calculated based on the work to be done in order to
mitigate or avoid the specific task.
After identifying these 12 risks, Team 5 will develop an
alternative method for accomplishing the project goal.
There are various ways to determine the contingency reserve.
Some of them include:
● Percentage of the Project’s Cost
● Expected Monetary Value
● Decision Tree Analysis
● Monte Carlo Simulation
Knowing that the project will be focused on the Expected
Monetary Value method. The Expected Monetary Value is a
statistical technique that is used to quantify the risks, which
will help the project manager to calculate the contingency
reserve. This technique is used in medium to high- cost projects
where we have enough resources and cannot risk the failure of
the project because the stakes are high.
Based on the previous quantitative analysis, for example risk
#1 has a 55 percent probability of occurring and a cost impact
of $600. The EVM for this risk event is (0.55* $600), or $330.
To compensate for this risk event, the contingency reserve
needs $330. By adding the EVM of each risk results in the total

contingency reserve for the project. Thus adding EVM from
risk 1 to 12, we may need to add a contingency reserve of
$1,830 to our budget to cover all identified risks.
Funds Request
In order to implement the preventive measures, we believe that
it will be beneficial for the Don project manager to submit a
fund request template or form to the board. A budget review
committee will be established and will meet biweekly to review
requests for additional funding.
That form from the project manager should also provide a
summary description of funding request with details,
justification and expected accomplishments, alternative
explored and partial funding effects. They might want to attach
any others supporting documentations, along with cost that are
reviewed weekly. The committee will review each request
within the context of strategic initiatives, new regulations,
emergencies, or other opportunities and determine if funds will
be allocated from the contingency reserve.
Let us keep in mind that two cases can happen: denial or
approval.
● If the fund request is approved that means that the sponsor
approved the funding from either the contingency reserve or
from management reserve
● If the request is denied, the project manager will have to
accept the risk.
6.0 Risk Management
6.1 Risk Management Plan
1. Risk Identification: In order to gain a full picture of potential
threats and impacts that might occur during the process of the
project, we used Analogy Techniques to brainstorm and identify
12 project risks and then used Risk Breakdown Structure to
organize them into categories so that we could manage these
risks on a more detailed level.
Risk Breakdown Structure

Level 1
Level 2
Level 3
Risk Number
External
Natural Cause
Weather
Risk 1
COVID-19
Risk 2
Human Cause
Accident
Risk 5
Environmental
Market changes
Risk 12
Technical
Online Platform
Risk 7
Audio Equipment
Risk 9
Internal
Project Management Risk
Schedule
Risk 3
Budget

Risk 4
Quality
Risk 8
Strategic Risk
Advertising
Risk 6
Customer Engagement
Risk 10
Program Design
Risk 11
2. Risk Analysis: We chose Probability and Impact Assessment
to conduct the qualitative analysis (as shown in the table below)
and prioritize our project risks. Furthermore, we applied the
method of Expected Monetary Value to conduct the quantitative
analysis (as shown in section 6.2 Risk Register) and to calculate
the potential cost for the risky uncertainties.
Qualitative Analysis: Probability X Impact Matrix
Impact
Low
Medium
High
Low
Risk 9
Risk 7
Risk 11
Risk 12
Risk 5

Risk 6
Medium
Risk 3
Risk 4
Risk 8
Risk 10
High
Risk 1
Risk 2
Probability
3. Controlling and Monitoring Phase and Risk Response:
Having project status reports checked weekly is the process for
controlling and monitoring the project risks; besides,
conducting customer satisfaction survey reports to receive
feedback from customers and assessing work performance data
once every event is over are how we control and prevent risks
happening during the events. We also implemented detailed risk
responses for our primary risks and secondary risks in our Risk
Register. The contingency reserve and the Change Control
Board will also be assigned as risk response planning. The
following are the guidelines of our risk response strategies.
Negative risk response
General definitions
Positive risk response
Avoid
Eliminate uncertainty
Exploit
Transfer
Allocate ownership
Share

Mitigate
Modify exposure
Enhance
Accept
Include in baseline
Include
Escalate
Manage at program, portfolio, or organization level
Escalate
4. Roles and Responsibility
Level 1
Level 2
Level 3
Risk Number
Risk Owner
External
Natural Cause
Weather
Risk 1
Project Team
COVID-19
Risk 2
PM
Human Cause
Accident
Risk 5
Staff
Environmental
Market changes
Risk 12

PM
Technical
Online Platform
Risk 7
Project Team
Audio Equipment
Risk 9
Staff
Internal
Project Management Risk
Schedule
Risk 3
Project Team
Budget
Risk 4
Project Team
Quality
Risk 8
HR
Strategic Risk
Advertising
Risk 6
Project Team
Customer Engagement
Risk 10
Project Team

Program Design
Risk 11
Project Team
5. Budgeting and Timing
Budgeting:
· Allowing about a contingency reserve of $1,830 to cover the
project in most circumstances.
Timing:
· Having regular updating meetings with the project team every
week to report the progress of the project status and address
potential risks to the project manager.
· Involving key stakeholders and sponsors in project steering
board, so that they can oversee and monitor the project
Running Head: GROUP FIVE - INTEGRATED PROJECT PLAN
2
GROUP FIVE - INTEGRATED PROJECT PLAN
6.2 Risk Register
7.1 Quality Management Plan and Statement
The quality management plan for this “Urban Bicycle
GoToMarket Project” will institute the proper processes and
procedures to ensure effectiveness and provide marketing

promotion to meet quality standards. The main purpose of this
quality management plan is to set the quality standards for what
is defined as acceptable. Also, this plan helps project manager
and project team to quality assurance and control quality and in
addition to establish the responsible roles to ensure that quality
management is properly managed throughout the project
lifecycle.
The quality management plan is to ensure the quality of this
project meets all quality standards including all key
deliverables throughout the project. The project sponsors,
company boards and key stakeholders will define the success
criteria for quality management and also the project team and
project manager will review quality standards from Urban
Bicycle. All these standards will be used with key processes and
procedures and communicated to all stakeholders. All quality
standards need to be properly documented by the Project
Manager and communicated for reference purposes.
7.2 Quality Metrics
Project Deliverable
Quality Standard
Quality Control Activity
Frequency Interval
Responsible
Project Documents
Project Charter, Project Management Plan, Stakeholder
Management plan and scope, schedule and cost management
plan, etc. need to be 100% completed.
Review by project team, project sponsor and key stakeholders.
All project documents must review and check once a month.
Project Sponsor
Project Manager
Target Organization
Contracted with the ideal business companies, charities, and
community organizations for collaboration with 90% rate.

Cost benefit analysis
Once completed define the target organization, keep checking
once week.
Project Manager
Event Design
Meets all needs and requirement from project sponsors with
100% rate
Review rule and requirements for designing
Once week during design phase
Project Manager
Project Sponsor
Event Implementation
Completed the outreach events, including workshops, wellness
programs, and charity rides to meet project scope, cost and
schedule requirements.
Review Project Management Plan.
Project requirements.
Conduct meetings with project sponsors and key stakeholders.
Weekly
Project Manager
Project Performance Report
Completed project performance report and ready to document
lesson learned for this project.
Project team should document the performance report and
project manager evaluate the performance of key deliverables
Monthly
Project Manager
Project Team
Customer Satisfaction Report
Completed the analysis of customer satisfaction survey report
with 95% rate of satisfaction.
Commuted with customers frequently understands their needs

and requirements.
Monthly
Project Manager
Policies and procedures:
The quality standards are defined by the project manager,
project team, project sponsors and key stakeholders of this
project. To ensure that all quality standards are being met,
responsible parties will review appropriate material and
document any issues and recommendations for approval. The
fishbone diagrams, flowcharts, check sheets, benchmarking,
brainstorming, and the meeting will be used to define the
quality standards, evaluate quality, and continuously improve
quality. Metrics are set up and used to evaluate the quality of
deliverables and processes during the project lifecycle. The
project manager has authority to lead and complete the
inspections for each key deliverable of this project by using the
quality stands that were established by project team and project
sponsors. also the project manager will be able to review and
assess whether the quality standards are being met.
The project manager and project team will update the project
documents through the project and document and record any
quality improvements. The project manager, project team, and
key stakeholders will establish quality improvements if needed.
The project manager will update all documents to record the
quality improvements.
Furthermore, all improvements and recommendations should be
reviewed and assessed against key aspects of the project to
determine whether it is beneficial to the project. The Project
Manager must update all documentation if any changes occur.
• Project deliverables must achieving 100% success rate
• Project deliverables should be within project budget and
time
• All quality requirements and needs must meet with the
sponsor, customers and key stakeholders.
• Successfully implement outreach wellness programs to

target companies and organizations
Quality Assurance
Project managers and project teams should conduct regular
quality audits to help determine that the activities and products
in the project meet quality standards. For the quality assurance
of the project management process, the following processes
must also be audited bi-weekly until completion:
● Development of Project management documents
● Terminating of target organization
● Implemented and completed the outreach event
● Assessment of customer satisfaction
● Assessment of project performance evaluations
8.0 Integrated Change Control Policy and Change Control
Template
8.1 Change Control Policy
Purpose
The purpose of this document is to provide the project manager,
sponsor, project team members, and all other stakeholders with
the standard process for managing changes on the “Urban
Bicycle GoToMarket” project.
Note: In the following document, there will be references to
“Project Manager” and “Project Team Members”. Since we have
decided to switch Project Manager every two weeks, the
responsibility he holds will switch accordingly every two weeks
as well. For example, at the time this document is being drafted
(week 7-8), the Project Manager is Nan Xiang, while with
“Project Team Members” we are referring. The team roles
rotation schedule can be found in the Team Charter.
Related Documents
The scope of the Urban Bicycle GoToMarket Project has been
defined in the approved Project Charter dated April 19, 2020.
The work breakdown of the project and the timeline are detailed
in the approved project plan dated May 3, 2020.

Purpose and Objectives
The purpose of this change management procedure is to manage
change requests so that approved changes will be controlled,
ensuring the project remains on schedule, within budget and
provides the agreed deliverables.
The primary objectives of change management are to:
· Manage each change request from initiation through to
closure;
· Process change requests based upon direction from the
appropriate authority;
· Communicate the impact of changes to appropriate personnel;
and
· Allow small changes to be managed with a minimum of
overhead.
Scope
The Change Management Process is the mechanism used to
initiate, record, assess, approve and resolve project changes.
Project changes are needed when it is deemed necessary to
change the scope, time or cost of one or more previously
approved project deliverables. Most changes will affect the
budget and/or schedule of the project.
Policy
The use of the formal change management procedure will be
required when any changes are discovered or requested which
impact previously reviewed, approved and published project
deliverables.
The documentation and tracking of all change requests will
be managed using the defined procedure and facilitated by the
use of the change management log.
A multi-tiered approach will be used to approve change
requests:
· The Project Manager will make decisions to analyze and
decisions to proceed with changes if the changes do not impact
scope, budget or schedule or result in an increase in risk for the
project.
· Changes which do impact scope, budget or schedule will also

be forwarded to the Project Team Members for review. Then,
they will decide together with the Project Manager and will
advise the Project Sponsor.
· Where the KindHuman Bicycles has the resources to absorb
the impact of the change, the Project Sponsor will make the
final decision, based upon the information provided by the
Project Manager and the input of the Project Team Members.
The Project Sponsor and the Project Manager will discuss
requests that may result in a significant change in scope,
schedule, and budget, i.e. the impact of the change cannot be
covered by KindHuman Bicycles resources.
· The Project Sponsor will make the final decision based upon
the information provided.
Decision Matrix
Scope Change
Increase Budget
Not Increase Budget
Increase Risk
Not Increase Risk
Increase Schedule
Not Increase Schedule
The impact of the change may be absorbed by KindHuman
Bicycles
Decision by Project Manager
NO
NO
YES
NO
YES
NO
YES
Vet with Project Team Members
YES

YES
NO
YES
NO
YES
NO
Decision by Project Sponsor
YES
YES
YES
YES
YES
YES
YES
The impact of the change cannot be absorbed by KindHuman
Bicycles
Vet with Project Manager
YES
YES
N/A
YES
N/A
YES
N/A
Decision by Project Sponsor
YES
YES
YES
YES
YES
YES
YES
The following is a general guideline for the change management

process. Most changes will require a subset of the steps listed.
Procedures
Each request will be tracked from the time of presentation
through:
1. Identify (identify and document the required change)
2. Validate (verify the change is valid and requires
management)
3. Analyze (analyze and record schedule, cost and effort impact
of change)
4. Control (decide whether to execute the change)
5. Action (execute decision, including revision to project plans
if necessary)
6. Close (verify that action is complete and close change
request)
Identify Change Request
Action
Responsibility
1. Identify and record the issue
Project Manager
Validate Change Request
Action
Responsibility
2. Identify members of the management team as the issue owner
3. Validate change request with project team members as
appropriate
4. Assess and evaluate change for necessity to project
5. Update change request with target date for completion of
analysis
Project Manager
Analyze Impact
Action
Responsibility

6. Triage with consultation of the Project Sponsor
7. Meet contract requirements for responding to Change
Requests.
8. Assign resources to review the impact of the change request.
9. Direct activity to assess the scope, cost and schedule impact
of the change.
10. Update change request with impact analysis and estimates in
terms of scope, cost, schedule and effort impacts.
11. Update change request with target date for decision.
Project Manager
Control Change Request
Action
Responsibility
12. Meet Sigma contract requirements for responding to Change
Requests.
13. Determine required approvals and assign priority to the
change request.
14. If changes impact scope, budget or schedule, place the
request on the agenda for the next Project Team meeting.
15. If changes do not impact scope, budget or schedule, decide
whether to proceed with the change.
Project Manager
16. Review and discuss analysis of change request
17. Develop recommendation for the Project Sponsor
Project Team Members
18. Decide whether to proceed with the change
19. If the impact of change cannot be absorbed by KindHuman
Bicycles, schedule a discussion with the CEO.
Project Sponsor
20. Review and discuss analysis of change request.
21. If change request should be escalated to the Steering
Committee, place the request on the agenda for the next meeting
(or email if the request is urgent).
22. Develop recommendation for the Steering Committee.
Project Sponsor

23. Review and discuss analysis of change request.
24. Decide whether to proceed with the change.
Steering Committee
25. General approval signature sheets for each outstanding
change request.
26. Update status of change request with control decision.
Project Sponsor
Action Change Request
Action
Responsibility
27. Negotiate contract changes.
28. Execute contract changes.
Project Manager, Project Sponsor, Technology Acquisition
Manager
29. Incorporate change request into appropriate plans and work
plan.
30. Update work plan baseline for agreed changes.
Project Manager
Close Change Request
Action
Responsibility
31. Close change request.
32. Communicate work plan change to project team.
33. Monitor and report progress against the project plan.
34. Confirm all updates have been recorded and file all Change
Request Documents.
Project Manager
8.2 Change Request Form
Project name: Urban Bicycle GoToMarket Project
Project sponsor: Gavin Brauer
Request number: 1

Date: May 31, 2020
Originator: Federico Boni
Change requested by: Nan Xiang (PM week 7-8)
DESCRIPTION OF REQUESTED CHANGE(S)
AND
REASONS FOR CHANGE
A) PROPOSED CHANGE
1. Reason for change
2. Reason for change
B) PROPOSED CHANGE
Reason for change
AREAS OF IMPACT OF PROPOSED CHANGE
Scope _____ Cost _____ Other _____
Schedule _____ Risk _____
DISPOSITION
Approve _____ Disapprove
_____
Approve as amended _____ Deferred _____
PRIORITY
Emergency _____
Urgent _____
Medium _____
Low _____
FUNDING SOURCE
Management reserve _____ Customer
_____
Contingency reserve _____ Other
_____
SIGN-OFF APPROVALS
Project Manager __ __ Date __May 31,
2020__
Project Team Member __ __ Date __May 31,
2020__

2020__
2020__
2020__
References
Berkeley (n.d.). Change Control Process. Retrieved from
https://vcaf.berkeley.edu/sites/default/files/change_control_proc
ess_aa.pdf
Birkett, A. (n.d.). What is Customer Satisfaction Score (CSAT)?
Retrieved from
https://blog.hubspot.com/service/customer-satisfaction-score
Haney, L. (2018). The 25 Best Companies for Cyclists.
Retrieved from
https://www.bicycling.com/culture/g20967875/the-top-25-best-
companies-for-cyclists/
How to Measure Customer Satisfaction: 4 Key Metrics. (n.d.).
Retrieved from
https://www.qualtrics.com/experience-
management/customer/measure-customer-satisfact
ion/
Risk Identification Risk Analysis Risk Response Plan Risk
Monitoring and Controlling
Risk Number Risk Statement Risk Owner Trigger Qualitatitive
Analysis Quantitative Analysis Risk Action Risk Response
Detail of Response Integration with Project Plan Cost of
Response Reassessment of Risk Contingency Plan Secondary
Risk Secondary Risk Analysis Secondary Risk Response Risk
Status

Cause Condition Consequence Category Probability Reasoning
Impact Explanation EMV-Cost EMV-Duration Probability
Impact
Risk introduced based
on Risk Response
1
Negative weather
conditions or sudden
weather changes on
the event dates
It may affect participation
in the events, especially for
outdoor ones like
charity/community rides
It'll limit the number of
attendees who has
willing to come to the
events Natural cause Project team
The
unpredictable
weather changes
in Boston High
Rapid weather changes are
normal and happen a lot in
Boston High
Sudden rain and breezy wind
might injure participants in the
outdoor rides

Probability = 55%
Impact = $600
EMV = $330 n/a
Respond
Required Mitigate
Provide rainproof
cycling accessories to
reduce the impact
Add extra resources (rainproof
equipment) to the document $150.00 Medium Medium
Postpone the outdoor
events
Participants get injured
because of negative
weather conditions
Probability- Medium
Impact- Medium
Avoid-Cancel or postpone the
outdoor events which are
completely affected by severe
weather conditions Open
2
Due to the huge
impact of COVID-19
People are still concered
about any large social
gathering events

which will limit the
number of participants
in any in-person events
including wellness
programs Natural cause
Project
manager Global pandemic High
The virus spreads easily and
sustainably between people High
It might cause people who are
infected are severely ill
Probability = 55%
Impact = $600
EMV = $330 n/a
Respond
Required Avoid
Put more focus on the
online workshops, move
in-person wellness
programs to online
Make a specific plan of virtual
workshops as alternatives for in-
person events $0.00 Medium Medium
Postpone the in-
person events to the
time of fully re-open

A lack of
customer/attendee
engagement because of
physical distance
Probability- Medium
Impact- Medium
Exploit-Hold a raffle during
the online workshops as a
reward to increase engagement Open
3 Schedule delay
The activities are delay and
prolong the whole schedule
of the project
Fail the time
expectation of the
stakeholder Schedule Project team
The unexpected
efficiency of
team member Medium
The schedule will be
controlled carefully by the
project manager. Besides, this
project primary relates with
the internal resources so the
schedule will be easier to
control. High
If the risk becomes an issue in
this project, it will fail the

expectation of stakeholder. The
goal of this project is to sell 50
bikes before the end of this year
which means the time limit of
this project is necessary.
Probability = 35%
Impact = $600
EMV = $210
Probability = 40%
Impact = 90days
EMV = 36days
Respond
Required Avoid
Manage the schedule
carefully and report the
finished work everyday
to control and monitor. Add lead or lag time in schedule $0.00
Medium Medium
Create a daily check
list for the team and
everyone reports the
work state.
Low efficiency cause
the schedule still delay
Probability- Medium
Impact- Medium
Avoid - The manager check
the work state frequently and

observe the working condition.
Giving advice when necessary. Open
4 Budget overrun
The cost is more than
estimated budget of the
project
The project may be
ended due to the
unexpected expenditure Budget Project team
The unexpected
cost of the project Medium
All the resources are listed in
the ms project with
consideration, and the cost is
calculated and estimated with
the resources list. Therefore,
the budget should be correct. High
The impact of budget overrun
will lead to the end of the
project because a project can't
run without fund.
Probability = 35%
Impact = $600
EMV = $210
Probability = 40%
Impact = 90days
EMV = 36days

Respond
Required Avoid
Control the cost from
every sides carefully
such as labor and
equipment
Developing a procurement plan
and list all the required equipment. $0.00 Medium Medium
Prepare a contingency
in budget
The contingency still
overrun
Probability- Low
Impact- High
Avoid - When the unexpected
cost shows up, evaluating if
the cost is necessary. If it is,
tring to find the cheaper
alternative option. Open
5
The participants
harmed during the
event
The participants may
harmed when they join the
community ride

Lose the reputation of
the organization Accident
The staff in
the event Accident Low
The community ride is an
event for fun which is not a
competition. The participants
will enjoy the ride with
attention. High
The impact of this risk depends
on the situation of the
participant injury. If the
participant gets minor injuries,
the impact is low. On another
hand, when the participant get
serious injuries, the impact is
high.
Probability = 15%
Imapct = $600
EMV = $90
Probability = 15%
Impact = 7days
EMV = 1days
Respond
Required Mitigate
Set an emergency station
to provide medical
support

Add activity to WBS and related
resource in document $200 Low Medium
The member in the
event sent the injured
participants to
hospital.
The emergency station
doesn't provide enough
medical staff.
Probability- Low
Impact- High
Mitigate - Ask for the expert
judgement to know how to
prepare the emergency station Open
6
The advertising effect
fail to reach the
expectation
Low participation rate of
workshop
Not enough people
know about the product Marketing Project team Weak marketing
Low
The current customer will
attend the workshop at least. High
It will become a factor to affect

the project success
Probability = 15%
Imapct = $600
EMV = $90
Probability = 15%
Impact = 90days
EMV = 13.5days
Respond
Required Avoid
Connect with the current
customer tight and open
the online workshop link
for the customer to share
Communicate with the stakeholder
(current customer) frequently -
List the indiviual stakeholder in
the communication plan $0.00 Low Medium
Encourage employees
to post the event
information and invite
their friends and
family to join the
workshop.
The communication
skill of the team
member doesn't work
well so that the
customer decreases the
interest to join the

event.
Probability- Low
Impact- High
Mitigate - The member who is
in charge of communicating
with stakeholders must have
good communication skills.
The manager should assign
people with consideration. Open
7
The functional issue
of the online platform
Unsolved and
uncontrollable issue occur
during the online workshop
The online workshop
will be stopped or
canceled
Third party
platform Project team Functional risk Low
The function of online
platform can be tested in
advance. Medium
It will affect the quality of
workshop.
Probability = 15%
Impact = $300

EMV = $45
Probability = 15%
Impact = 30days
EMV = 4.5days
Respond
Required Mitigate
Select a second online
platform to be the back
up. When an unsolveable
issue occur, we can use
the other platform.
Add activities in WBS to select
the platform $120.00 Low Low
Record the
presentation in
advance
The second-choice
online platform still has
functional issue.
Probability- Low
Impact- High
Mitigate - Testing the function
of the platform in advance and
knowing what kind of
functional issue has happened
before. Open
8

No qualified
candidates of speakers
The quality of the online
workshop will not achieve
the expected impact
The potential customers
may drop the interest in
product Quality HR manager
The requirements
of speaker are not
specific enough Medium
The speaker has to get the
professional knowledge about
the bike structure and
industry and this is not a
weird known field so the
candidates who match all the
requirements are not easy to
find. High
The quality of the speaker will
influence the whole workshop
and determine the interest of the
participants.
Probability = 35%
Impact = $600
EMV = $210
Probability = 40%
Impact = 30days
EMV = 12days

Respond
Required Mitigate
Prolong the schedule of
interviewing the
candidates and post the
job require on the
website earlier.
Adjust the schedule about speaker
searching in schedule management $50.00 Medium Medium
One of the team
members who is
familiar with the bike
industry prepare the
content to support the
speaker.
The sponsor still
dissatisfied with the
candidates of speaker
Probability- Medium
Impact- Medium
Avoid - Asking for the draft of
the presentation to ensure the
quality of the content reach the
expectation. Open
9
Malfunctioning
technical equipment,

such as microphones,
speakers, or
professional audio
gears
It will require staff to repair
the machines
It will pause the event.
It will lower the quality
of the event because of
no audio
Technical
Cause Staff
Technical
problem Low
The equipment should be
required to do the soundcheck
and audio test every time
before the event starts Low
The wellness programs will be
hard to continue because of no
audio outputs
Probability = 15%
Impact = $100
EMV = $15 n/a
Response
Required Avoid
Alternative

supplier/back-up
technical equipment is
prepared
Add extra resources to the
document $50.00 Low Low
Use one of the staff's
mobile phone as
equipment
Overrun the budget
because of the cost of
back-up equipment and
repair service fee
Probability - Low
Impact - Low
Enhance-Use the contingency
serve to cover this cost Open
10
Participants are
willing to attend the
events but have no
interests in purchasing
bikes
The revenue of the project
will not be able to cover
the expenses of the project
We will not make as
much profit as we

expected Strategic risk Project team
A lack of
customer
engagement in
purchasing Medium
People might find workshops
are useful but not won't spend
$2,000 on bikes High
The expenses might higher than
the revenue. We won't be able to
accomplish the sales goal
Probability = 35%
Impact = $600
EMV = $210 n/a
Response
Required Mitigate
Focus on the companies
that have higher
purchasing rates or
higher scores in customer
satisfaction survey
Conduct research of customer
satisfaction to find out the most
engaged target organizations with
higher sales $0 Low Low
Cut down the costs of
some events or the
number of the events

Decrease the exposure
toward some potential
buyers who are not
related to any LinkedIn
connections
Probability - Low
Impact - Low
Transfer-Transfer the outputs
of branding exposure to social
media platforms Open
11
Target customers lack
interests in the content
of the programs
Customers will not attend
the wellness events
It will decrease our
opportunity to promote
the products and build
brand awareness Strategic risk Project team
Poor program
design Low
As a one of the wellness
trainer, our sponsor already
has a clear understanding of
what kinds of wellness
programs work better Medium

It will low the participant rate
and decrease the exposure
Probability = 15%
Impact = $300
EMV = $45 n/a
Response
Required Mitigate
Conduct pre- and post-
event survey to find out
the participants'
expectations and
reflections of each event
Conduct marketing research and
pre- and post- event survey $0 Low Low
Implement the content
of previous wellness
programs
Still might have some
participants dislike the
content of the workout
programs
Probability - Low
Impact - Low
Accept-Implement the content
of previous wellness programs Open
12

Due to a lack of
interests in
collaboration
We couldn't find as many
cycling organizations or
business companies that we
could collaborate with
It will decrease our
opportunity to promote
the products and build
brand awareness Business risk
Project
manager
A lack of
business interests Low
The awareness of employee
wellness program is rising in
many corporates Medium
It will decrease our opportunity
to promote the products and
build brand awareness
Probability = 15%
Impact = $300
EMV = $45 n/a
Response
Required Transfer

Hire event planning
agency to help us to find
target organizations Add extra costs to the document $200
Medium Low
Focus on the
companies that
already have
collaborated with us
before
Increase the budget
because of the cost of
event planner hiring
Probability - Medium
Impact - Low
Enhance-Use the contingency
serve to cover this cost Open
You will recall that your Project Sponsor wanted to see a
regular performance evaluation report. For this assignment, you
will create a one page summary report that includes the
following items:
Report / Executive Summary - Summarize the finding of your
report briefly (1 or 2 paragraphs); this should include the major
finding of your report, as well as, your recommendations. It
should be concise and direct.
Current Status of Project -- In this section, you want to provide
details regarding the current status. Tell whether or not the
project is on or behind schedule, over or under budget. If there
are variances, tell why they exist. What has gone wrong? What
is going right? Provide the EVM data here, including CV, CPI,
SV, & SPI. Explain what these values mean. Provide an brief

analysis of what has happened in the project so that the reader
understands why the variances exist, specifically.
Forecast Future Performance - Based on the analysis, where is
this project heading? Provide a forecast of future performance
using EVM. What is the EACf and ETC for this project? Be sure
to explain what these numbers mean in understandable terms.
Recommendations - Based on your analysis, tell us what areas
of the project are of concern. Is cost or time a concern in these
areas? Does the scope need be considered? What are some
possible solutions for cost and schedule related problems that
might be applicable?
Supporting Data - If relevant to your calculations and analysis,
provide supporting data in the final section of the report as an
appendix. The supporting data is not constrained by the 1 page
limit, but all other sections are.
China-USA Business Review, ISSN 1537-1514
September 2012, Vol. 11, No. 9, 1205-1212
The New Regulatory Concerns and Regulatory Management
Gouher Ahmed
Al Ghurair University, Dubai, United Arab Emirates
The present study is attempts to investigate the global financial
crisis of 2008, which originated in the United States
of America and spread to other countries. This global financial
crisis was following the collapse of the mid-19th
century financial giant on the September 15 of this year, other

big banks also on the verge of collapse have raised
concerns across the globe, especially in the United States of
America, and also started to search for some unfailing
financial regulations and financial authorities or regulators, but
even amidst the countries like UAE and India were
noted to be of comparative calm because of their principled
banking and central banks, and the results found out to
be mostly as a failure of bank leadership, especially of central
banks like the US Fed, the unprincipled banking
which is at the back of the crisis, and also an ineffective central
banking, and the regulatory search is led to central
banking and dynamic regulatory management (DRM).
Keywords: international business, global financial crisis,
regulatory management, banking principles, ethics
When the world was thought to be advancing well under the
new market ideology of the west, of which
the USA is supposed to be the main proponent—in the 21st
century, it was struck in 2008 by financial crisis of
the magnitude of the Great Depression of the 1930s, starting
with the No.1 economy of the world of the USA
spreading to the rest of the world like a wild-fire, from the
devastations of the US to the rest of the world which

have yet to recover. For example, the rate of unemployment in
the US is said to be running at the yet
unmaintainable level of 9.1% in August 2011 (U.S BLS, 2012),
not to say the other less “robust” countries and
economies. Democratic India too has yet to hit its pre-2008 near
to double digit growth rate of 9 percent plus,
notwithstanding its self-acclaimed prudential financial
management of the crisis and its international economic
good behavior, according to principles of “free & fair trade”,
unlike some nouveau rich countries aggrandizing
themselves.
What is more, it is feared whether the Great Recession, a great
calamity in itself would slide into a far
great calamity of Great Regression, according to some straws in
the wind.
After the Great Recession, Europe has embarked on a Great
Regression. Wages, Pensions, unemployment insurance,
welfare benefits and collective bargaining are under attack in
many areas as governments struggle to reduce debt swollen
partly by the cost of rescuing banks during the global financial
crisis. (Taylor, 2011, p. 12)
So, it is banks at the center of the crisis that called for not only
rescue but also regulation to see that such
Gouher Ahmed, Ph.D., PMP, Associate Professor of Strategy
and International Business, College of Business Studies, Al

Ghurair
University.
Correspondence concerning this article should be addressed to
Gouher Ahmed, P.O. BOX: 37374 Dubai, United Arab Emirates.
E-mail: [email protected]; [email protected]
DAVID PUBLISHING
D
THE NEW REGULATORY CONCERNS AND REGULATORY
MANAGEMENT
1206
crises which do not take place hence. But, in the near future, the
present crisis is to be fought off. Following
this concern exercising G-20, IMF, IBRD, banking, and
academic circle too, this note is addressed to the new
financial regulatory concerns, regulations, and regulatory
management that appear to be eluding a consensus. It
is the nature of the crisis that the regulatory remedy or remedies
to put into effect. The big crisis itself after has
so much experience and expertise of running the financial
institutions, then regulation appears to have no cause
when everything appeared to be running well under the new
international economic order of globalization,

privatization, competitions, free and fair trade, etc. (Paul,
2008). However, the free-market ideology, which
calls for a lot of self-discipline and self or voluntary regulations
on the part of all its players, should not be
interpreted to do anything in pursuit of profits. Accordingly, the
new regulatory concerns assume the
importance for an academic investigation, with the objective of
unraveling the nature of crisis and whether right
remedies are being sought in the new regulatory searches. The
exercise may start with a note of the objectives
and methodology of this modest exercise.
Objectives
crisis and its alleged authors or perpetrators;
ulatory
remedies;
take care of great crisis and their formidable
players;
Methodology

In the first place, it is the free market ideology giving a
freehand to the market players as the benefactors
of mankind which is at stake and is to be examined. Does it
mean regulatory helplessness? This question is to
be addressed. Next, it is the question of banking, particularly
big banks, which is said to be at the heart of the
crisis, but banking is well-established economic setup which is
the guardian of public money which should be
the last or never to stray away from the path of trusteeship. So,
along with the free market ideology, the
question of banking and banking standards are also gone into, in
the breach of which the whole problem of the
crisis appears to lie in the fact that the failure of central
banking to uphold the principles of banking. It also
argues whether the big bank means no principles of banking to
follow. Than the great crisis itself is examined
and the efforts at warding it off and the cost of the crisis in
human and materials terms.
It is also well known that there is a crisis—within the crisis,
debt crisis, under which government are
reeling under it and being bailed out by the IMF and following
government movements such as that of the EU,
quite reluctantly, and which are running budgetary and trade
deficits, including India. There are also regulatory

concerns on this bigger score (Krugman, 2011).
As such, regulatory concerns, arising out of the great crisis-
2008, are very much in the air not only at the
national level but also at the international level of which a view
is taken, as also of attempts at new regulatory
bodies or super or unfailing regulators that would make the
world safe from big or great financial or banking
and debt and budgetary crisis. Not the least is the Regulatory
Architecture or Management (RM) that is to
emerge from the new regulatory concerns and regulations.
MANAGEMENT
1207
Finally, the method of the study is to see whether the new
regulatory concerns remedial concerns and
measures and architecture meet the basic problem of the crisis
which appears to be the regulatory failure itself,
self and of the regulatory authorities. Why, for example, entities
like the UAE are free from the regulatory
concerns’ show they could have a safe sail through the crisis?
The case of India is not different, where there are

no regulatory concerns. It is a different thing that the
government of India, for no reason but just to assert itself
unnecessarily and against a good working central bank, appears
to be thirsting for one and two regulatory
concern. Indian is a case of petty political over lordism in the
crisis to rule over a good working central bank.
The roots of the crisis are deep and abutting that need to be
taken a view. Why, again the US
neighbor—Canada has no regulatory concerns and appears to be
calm amidst the raging financial storm just in
the neighborhood. In the light of this, the new regulatory
concerns may appear panic reactions, which, in
retrospect, may seem unmissed for it.
Market and Banking Ideology
There is no doubt that the winds of change blowing across the
continents and countries, bringing the
countries together, the winds of globalization, marketization,
privatization, enterprise, innovations, mobility,
internet, mobile phones, international business, travel, tourism
and education, free trade, consumerism,
advertisement, enterprise, rising aspirations, environmental
concerns, space exploration, etc.. The economic
dictum of this new world economy is the rule of the invisible

hand or price mechanism, an all time and
seemingly an ever alluring accept of Adam Smith (1723-1790),
the author of the foundational classic of the
science of economics as well as business The Wealth of Nations
[1776] (Smith, 1776). Notwithstanding its
critics, the ideology by and large continues to dominate the
domain of economic policies and practices (The
Economist, 2001). It needs no saying that the market ideology is
for high growth, greater trade, and more
welfare, for ushering in, in short, an era of global prosperity. It
is well known that the late Prof. C. K. Prahalad,
the management doyen, had called upon the business in general
and MNCs in particular to advance their
footsteps towards the bottom of the economic pyramid (BOP)
which made up of the world’s poor and produce
goods and services for the poor by somewhat lowering their
high profit expectations (Prahalad, 2004). Prof.
Prahalad’s concept is a great innovation in economic and
business with a great humanizing effect, lending the
new market ideology to be a human face and a concern for the
welfare of humanity at large. The market theory
is for unleashing enterprises and innovations. It has brought,
among other things, mobiles at a cost of Rs. 500 or
$11 a piece within the reach of the common man in India, a

country of great poverty numbers. The Crisis raises
doubts concerning the free market ideology (Economic &
Political Weekly, 2009) whether it is time for a
counter-revolution is a different thing. There is, however, no
doubt about the crisis raising regulatory concerns.
One thing overlooked concerning the free market ideology by
all the players is self-discipline and umpiring,
and nobody big enough to break the market code. In fact, the
bigger enterprises have greater responsibility
thrust on them. They are the uncrowned market leaders who set
example in good business behavior for the rest.
They are economic light-houses who should strike a right path
for themselves and the rest. They are business
leaders. No business or profit at the cost of the public good and
general welfare, which is not philosophy or
ethics but fundamental market and business principle. Banking,
especially, should be the embodiment of all this
time principle. No tampering, hanky-panky. The foundation of
banking is PUBLIC TRUST. They should set up
financial standards and norms of good financial behavior. There
is an unbreachable banking code. If anything,
the crisis appears to teach that the bankers, especially the so-
called big bankers, need to taught the banking

MANAGEMENT
1208
principles. It is an unfortunate situation that even the great
central bankers appear to be in need of learning the
banking principles and the principles of central banking. There
is no such thing as free-for-all-banking.
Banking Principles
It may seem to belabor the obvious to talk about the banking
principles to the management community,
but it is the breach of these age-old, trusted principles which is
the heart of the big or the first big financial
turmoil of the 21st century and all efforts at the national and
international level are being expended to invent a
financial regulatory—Holy Grail(s) align to a wild-goose chase.
After all, for all these years, especially in the
greatly inventive 22nd century, the world has not been living in
financial regulatory dark times. The world had
lived through the far greater financial crisis of the great
depression. It is now only great recession, somewhat a
lesser calamity. Eternal vigilance, they say, is the price of
democracy, the winds of which appear to be blowing

Increasingly, multinational corporations (MNCs) nolonger s.docx

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