Cec trading ltd - Free Essay Example

1.0 EXECUTIVE SUMMARY 1.1 Business Idea and Goals CEC Trading Ltd. is a Nano Energy Water Flask trading company in Miri, Sarawak. The products that we sell are water flasks that release charges to the water with high amount of negative ions, which is good for our body. This company intends to be the best water flasks trader in Malaysia. It is because the water flasks that this company is selling are one of a kind. It also made up of good quality and the price is very affordable. Three elements that this company concentrates on in order to reach our goal are our customers, our supplier and our employees. The major shareholder of this company (Vivian Ngu) intended to initiate the business with more than 5 employees and sell approximately 10500 water flasks in the first year which will increase in rational amount in the following month. The company intends to generate at least MYR 294,000 in sales revenue and make MYR 65,200 profit in the end of its first year of trading. 1.2 Marketing The main targets of this business are customers; range from students to workers, most likely everyone. Our company has a warehouse for storing the water flasks and we had chosen a strategic place which is situated at Jalan Bintang, Shop Lot No. 68. On the other hand, our company is selling the Nano Energy water flasks in Parkson, which is located in a shopping mall named Bintang Plaza. The reason we chose Bintang Plaza as the main location for our business is because of the huge flow of customers who visit Bintang Plaza daily. 1.3 Products Nano Energy water flasks can release charges to the water with high amount of negative ions, which is good for our body. It can restore the waters PH level to the ideal level, which is 7.0 to 7.4. Thus, it will change the water to alkaline water which benefit to health. The Nanotechnology breaks down water molecule into smaller possible size so that they are more easily absorbed by the body. Therefore, the taste of the water is smoother, sweeter and easily absorbed by our body cell as osmosis may occur easily. Drinking energized water regularly also kept us away from suffering different kind of health diseases. Moreover, the energized water penetrates deep into the body cells more easily, transfers nutrients to the body more efficient and takes away un-useful product from our body system, thus making us strong and healthy. 1.4 Sales and Promotion Promotion of the business will take place using a variety of methods, including advertising through distributing flyers from school to school, making banner, emails and telephone ordering. We will pay a few workers to distribute flyers from one place to another place. For examples, Curtin University and always all the secondary school in Miri, Sibu and Kuching. 1.5 Finance CEC Trading is a self-funding company as the initial shareholdings of RM 8000 will be injected by the major shareholder of the company (Vivian Ngu), and RM 5000 by other shareholders (Damilola, Faiznur Dilan, Wong Wen Yi and Wong Soon Siong). The company estimating the business will always show a positive value of cash surplus in every month for the first year of the operation. The company will not apply for any form of loans from outside party including bank in the first year of the operation. 2.0 BACKGROUND 2.1 Mission Statement CEC Trading Ltd. is not only aim to be one of the well-known Nano Energy water flasks traders in Malaysia but also aim to be the best water flasks trader in Malaysia. We want our product which is the unique Nano Energy water flask known as the best water flask in Malaysia as it is a beneficial product and it is made up of good quality. As well as any other company, we also would like to gain profit as much as possible. In order to attain our missions, our company will focus to the followings: 1. The Product: Our good which is Nano Energy Water Flask is made with 304 stainless steel. There is a filter inside the water flask which will be builded up from 13 kinds of natural materials such as tourmaline, zeolites, manifanshi, nano silver powder, kaolin earth, rare earth, far infrared stone, muyu stone, clay and others. The combinations of different kind of natural resources are approved scientifically to give highest efficiency to the water. 2. The Employees: The employees will be trained to do their own role efficiently. They will also be motivated by attending program which then they will produce better performance. 3. The Consumers: We are targeting adult as well as children and ageing people to consume our products since our product is available to any age. We would like to make sure that our customer satisfied with their purchases of the Nano Energy water flasks. For the capital, the amount capital needed to start the business is RM28,000. The amount of capital stated is needed to cover up all of the essential expenses that the business required to set up the business. The sum of capital that stated above is also needed to achieve a positive cash surplus in the first month. 2.2 Company History This is a new business which all started from the observation that we, the shareholders made. We had a discussion and came up with an idea of selling water flasks. The water flasks that our company planning to sell are water flasks with special features and benefits, which are the Nano Energy water flasks. This water flasks release charges of negative ions to the water and it is good for our health. In addition, the reason we chose to sell Nano Energy water flasks is due to the high demand of health products which needs a huge amount of money. On the other hand, we can also save the environment by reducing the use of plastic water bottle. Thus, by combining both of these situations, this company is set up. Furthermore, customers will not have to spend lots of money for their health products; instead they can buy the Nano Energy water flasks which only cost them MYR 28. 2.3 Business Goals The short-term goal of this company is to employ at least 5 persons full time on a salary of approximately MYR 4,900 per month. Our company planned to run our business within Sarawak for a start. The Nano Energy water flasks will be distributed to a few parts of Sarawak which are Miri (the main place of our business), Sibu and also Kuching. Furthermore, our company targeted to sell about 10500 water flasks in a year, which would probably increasing in the following month and gain a net profit at least MYR 65,200 for future investments. For the long term goal, our company wanted to expand the company into a bigger company by selling the Nano Energy water flasks to West Malaysia and Sabah. This is because we want to widen our market range and we would like to gain more profit. In order to achieve our long- term goal, we will analyse our weaknesses and strive to improve our business strategies. 3.0 MARKET CEC company is a trading company that buy product from a manufacturer (whole sellers) then sell to retailers which is to the shop we decided to sell our products. Then we sell our product to consumers. The new product we are introducing into the market is a product from Vuitton Silver Manufacturing Company that sells different types of water flask in Malaysia such as Vacuum water flask and Nano Energy water flask. The product we are introducing is Nano Energy water flask which helps to charge water with high amount of negative ion which are absorb by the body. Due to the fact that more than half of our body consists of water, water is an important element which is needed by everyone. Thus it is important that we consume healthy water daily. Nano Energy water flask can change the water ph level to be alkaline. Other than that, it can also breaks down water molecule into smaller size which then can be easily consume and the taste will be sweet and smooth. Furthermore, alkaline water ca n build up better immune body system thus prevent us from easily infected by diseases. For further information, drinking this energized water often also enhance our bodys metabolism and can concern about our beauty. However, the most important key point in drinking this energized water is keep us away from all kind of diseases. Due to the fact that our warehouse is in the state of Miri, Sarawak, our product can be found in Parkson which is in Sibu, Miri and Kuching. This water flask can be use by children as well as adult. 3.1 Market Analysis Due to the research carried out by the CEC Company, we found out that there is a lot of water flask that were on the market, but their functions are only to keep warm or keep cold. Thus, our company decided to do trading on a new type of water flask, which is for consumers health purpose. Another thing that the business concern about is about environmental friendly. 3.2 Seasonality The major of our sales revenues are in February to November. This is because there are no long holidays or school holidays. Thus, the customers might saw the advertisement for our product and purchased them. In the other hand, due to the holiday season such as Celebration or summer break periods, the people might be going out for vacation thus will decrease our sales revenues. 3.3 Competitors There are lots of competitors in the market who have products that perform same function with our product Nano Energy water flask, some of the companies are listed below: I. ENCHANCE PLASTIC INDUSTRY SDN BHD, MALAYSIA II. TAIZHUU GANGLUNG PLASTIC CO.LTD III. KSK GLOBALINK MANUFACTURING SDN BHD IV. ELLEDI (M)SDN BHD V. ZHEJIANG TYSESO INDUSTRY TRADE CO.LTD. VI. YONGKANG SHIQIANG HARDWARE PLASTIC CO.LTD 3.4 Market Overview The major target market of CEC Company is student, workers, athletes and the public in general. Nano Energy water flask produces storages where you can store your water to drink anytime which is tasty. Our product is convenient, easy and collectable, it is also attractive to the eyes as it will be in three colors silver, red and black which makes the demand for the product higher because it is also affordable in terms of price. Other than that, we also provided telephone ordering for customers need. 3.5 SWOT Analysis We carried out an analysis on the market situation on our product with the use of SWOT analysis, which we make improvement in our business. SWOT Analysis represents the strength, weakness, opportunities and threats of the business. Through SWOT Analysis, it can guide the company to work on our weakness and threats where as maintain our performance regarding the strength and opportunities(citation business management). STRENGTH The strength is an initial factor which increases value for our business. The strength of nano energy water flask is to have been strong enough to get them a higher place in the labor market even with various imitations from other competitors who are in the market or wants to come into the market with similar products. It can be measured using internal assessment. Quality of the brand Strategic location Sustainability of the product Health care Light weigh of the product WEAKNESS Weakness is also an internal factor that decreases the value of the business. We need to analyze our company weaknesses so that we can make improvement based on them. Lack of marketing skill Lack of workers Limited budget Lack of advertisement Consistency of supplier OPPORTUNITIES Opportunities are external factors that add value in the business. The business needs strategies to perform better performance. Expose our products in other countries Special promotion during special events Improve the skills of workers THREATS Threats are the external factors that decrease the value in the business. The business need to be aware of the threats that may be occurred. Existence of substitute goods in the market Delayed of the products due to the transportation problems 3.6 MARKETING PLAN 3.6.1 Production/ Service Target Market The 2 main targets of doing this business are to improve the healthiness of consumers and to concern about the environment. Nano Energy water flask is a good product which helps to transform the water into alkaline water which is good for health. It is also convenient in the aspect of shape and size which makes it very easy to be carried around by anyone who needs a flask to store their water to take to either school or workplace and even to sport arenas. It is a stainless steel bottle which makes it more attractive and presentable. The fact that it is a stainless steel does not mean it going to get rust easily. On the other hand, since the product is made of stainless steel, it can be used for at least one year. Thus, we can be environmental friendly by saving the consumption of plastic water bottle. 3.6.2 Place Although the business is doing trading to Miri, Sibu and Kuching, our main business is in Miri. Nano Energy water flask is classified to be a household product, thus it can be found in Parkson, in the department where they sell household products. We also need a warehouse to store all our products. 3.6.3 Price Vuitton Silver Company supply Nano Energy water flask to the business with the cost of RM15 each. This cost will be derived after the deduction of all the money use in the production of the flask, such as buying of the machinery, steels, wages of employees, vehicle for distribution, insurance, rents and other expenses. After doing the analysis, our company tends to charge RM 28 for the product which can provide profits on every sales and this price can be afforded by customers. 3.6.4 Promotion and Advertisement Our company tends to alert the general public about nano energy water flask through various means in other for them to know about the product. A research was done on the strategies needed to promote the product in the market. As a result, we made use of the following promotional tools in the business. fliers and handbills posters and banners emails and telephone contact 3.7 Evaluation of Market CEC Company carried out an evaluation on the market, using the market strategy which is carried out at the end of every year to analyze the sales data of Nano Energy water flask to see it performances in the aspect of the quantity that has been sold and as well as profits made. Based on the cash flow forecast, we have cash surplus of RM 65,200 during the year. This proved that the promotions and sales have been done effectively. 4.0 OPERATIONS 4.1 Legal and Licensing Requirements (a) Business name and legal structure CEC Trading Ltd is a proprietary limited company. The company structure has already been registered and start up with five shareholders: Vivian Ngu Yen Shya (25% shareholding) Wong Wen Yi (18.75% shareholding) Faiznur Dilan binti David Ismadi (18.75% shareholding) Damilola (18.75% shareholding) Wong Soon Siong (18.75% shareholding) Who also serve as the directors of the entity. (b) Operating laws and licenses The business needed a license to run the business legally. 4.2 Management Details The managing director of the company will be: Vivian Ngu Yen Shya Home address: 175, Phase 2C1, Desa Senadin, 98000 Miri, Sarawak, Malaysia Ph: (085) 656578 Fax: (085) 656579 Date of birth: 25 November 1991 Qualifications: Bachelor of Business (Double Major in Finance and Management) Experience: Management and Financial Advisors and owner of Wealth Spring Consultancies 1997 2003 4.3 Organizational Structure and Staffing Most of the job of the business will mainly be done by general manager. A warehouse is needed to store our products. General manager, sales manager and accountant will mainly be working in the warehouse. On the other hand, 3 marketing expertise and 2 drivers are needed in doing sales and also deliverance. General manager The duty of a general manager are to manage all business plans and the performance of the employees. Salary : RM 1000 Sales manager * The duty of a sales manager is to deal and communicate with the owner of parkson in order to know the amount of sales revenue. * Salary : RM 700 Accountant * The duty of accountant is to record the business transactions, summarizing and analyzing to produce financial statement in the end of the period. * Salary : RM 700 Sales advisor * The duty of sales advisor is to approach customers and advise them to buy our product. * Salary : RM 500 Driver * The duty of driver is to deliver the products to the destination and also help to transfer the products to the sales department. * Salary : RM500 4.4 Professional Advisers Accountant Sunlight Accountants 55, Sunshine Park, Tun Hussein Onn Road, 98000 Miri, Sarawak, Malaysia Ph: (085) 668 132 Fax: (085) 668 133 Lawyer John Smith 28, Fortune Park, Desa Damai Road, 98000 Miri, Sarawak, Malaysia Ph: (085) 636 732 Fax: (085) 636 735 Insurance broker Bank account May Bank Malasyia 279, Bank Street, Pujut Road, 98000 Miri, Sarawak, Malaysia Manager: Angeline Tan Ph: (085) 678 588 Fax: (085) 678 579 4.5 Business Premises Location CEC Trading Ltd will acquire a business premise as an office which deals with the paperwork and also warehouse as the storage for stocks and equipments. The ideal location would be located at shop lot where we can store and sell the stock. The premise will be located at Shop Lot 608, Medan Commercial Centre, 98007 Miri, Sarawak, Malaysia. The price tag for renting the shop lot will be RM 1,500 per month. The shop lot will be repairing and do some painting. The goods that we sell will be distributed to the hypermarket, Parkson in Miri, Sibu and Kuching. 4.6 Equipments Required The equipments that required for the business will be: Computers Printers Scanners Internet connections Fax machines Telephones Furniture (table, chair, shelves) The above equipments are some of the basic needs to run the daily business operation. The equipments required will change from time to time. 4.7 Production Processes Our company will get the stock from the supplier, Vuitton Silver. The estimated amount around 1000 of Nano Energy water flasks will be order from the supplier every month. Therefore, all the stocks will be store in the warehouse. Then, the workers will distribute some of the stock to Parkson. The working hour is from 8am to 5pm every day except on public holidays. There are different types of color of the water flask will be sold such as silver, black and red. The product will be sold at RM28 each for every types of color. The selling price is enough to cover all the expenses as the cost price of each water flask is RM 12. It is a reasonable price as these Nano Energy water flask is good for health and can solve the skin problems. However, the office is used as a place for the process of paperwork and storage of documents and equipments. The ordering of our company products and all the documents and accounts will be recorded down and will be kept. All the works in the office work will be done by the clerk and supervise by the manager. 4.8 Critical risks/Contingency Plans CEC Trading Ltd will organize training program to all staff members for professionalism in running the business and also for contingency plans. The training will be on how they going to promote and sell the water flask. Insurance will be bought for business premises. The aim is to recover some assets in case of any accidents such as fires, accidents and thefts as well. Those liability and car accident will be covered by the professional indemnity insurance. The injury to the managing director will be covered by workers compensation. 5.0 FINANCIAL PROJECTIONS 5.1 Basic Assumptions and Information (a) Calculation of income and expenses Expenses are calculated based on research and managements knowledge of costs. Income or sales revenue is assumed to be paid within the month issued. The impact of inflation or increases costs is not taking into consideration. Depreciation of equipments purchased and vehicle purchased in June 2010 is calculated using straight-line method, at 10% per annum. Gross cost of goods is RM 168,000. Drawing is RM 200 per month. The projection is for one year and the figures are in Ringgit Malaysia. (b) Financing of the business An investment of RM 28,000 will be invested into the business according to our shareholdings Vivian Ngu Yen Shya RM 8,000, Wong Soon Siong RM 5,000, Wong Wen Yi RM 5,000, Faiznur Dilan binti David Ismadi RM 5,000 and Damilola RM 5,000. Sales income for June is based on early promotions, thus providing initial cash surplus and avoid the need for any short term debt financing. The operation financing strategy is showing a cash surplus in the bank accounts with total amounts of RM 70,700. The business will open a cheque account that provides electronic funds transfer facilities for customers. A minimum of two shareholder directors is needed to sign all the cheques for security reasons. (c) Distribution of profits Profits in the first year will be retained in the business. In future years, three quarters of the annual net profit after tax will be paid to the directors at the end of the financial year according to their shareholding and the remaining quarter will be kept as retained earnings. The Sales Mix Forecast, Cash Flow Forecast and The Trading Profit and Loss Statement is prepared according to generally acceptable accounting principles and conventions. (d) Goods and services tax All forecasts are net of tax. (e) Loans The firm has no current loans or debts. 5.2 Analysis of Financial Forecasts (a) Net profit margin is used to measure the companys ability to earn a net income from sales. The net profit margin is calculated based on the first year of the projections. Net profit margin % = = = 22.18% Since this trading company is running the business for the first year, it is normal to get a relatively low figures of the margin. The margin is expected to increase in the next few years. Other than that, the company can use other ratios to do analysis on the financial statements in the coming years. (b) Break-even point Contribution margin is used to determine the amount of profit that is made towards payment of the fixed cost. Considered that cost of goods sold is the variable cost, the contribution margin is equal to sales minus variable costs. Gross profit margin = = = 57.14% The fixed cost is projected to be RM 102,800. Break-even point in value = == RM 180, 350.88 Accounting 062 May 28, 2010 5.2.1 Sales mix forecast CEC SALES MIX FORECAST for the period June 2010 to May 2011 June July August Sept. Oct. Nov. Dec. Jan. Feb. March April May TOTAL Item: Water Flask Number sold 450 700 800 800 800 600 700 1,000 1,100 1,150 1,150 1,250 RM 10,500 Selling price per unit RM 28 RM 28 RM 28 RM 28 RM 28 RM 28 RM 28 RM 28 RM 28 RM 28 RM 28 RM 28 Total sales income 12,600 19,600 22,400 22,400 22,400 16,800 19,600 28,000 30,800 32,200 32,200 35,000 RM 294,000 Cost of goods sold per unit RM 12 RM 12 RM 12 RM 12 RM 12 RM 12 RM 12 RM 12 RM 12 RM 12 RM 12 RM 12 Total cost of goods sold 5,400 8,400 9,600 9,600 9,600 7,200 8,400 12,000 13,200 13,800 13,800 15,000 RM 126,000 5.2.2 Cash flow forecast CEC CASH FLOW FORECAST for the period July 2010 to June 2011 June July August Sept. Oct. Nov. Dec. Jan. Feb. March April May TOTAL Income Sales revenue RM 12,600 RM 19,600 RM 22,400 RM 22,400 RM 22,400 RM 16,800 RM 19,600 RM 28,000 RM 30,800 RM 32,200 RM 32,200 RM 35,000 RM 294,000 Capital 28,000 28,000 Total income 40,600 19,600 22,400 22,400 22,400 16,800 19,600 28,000 30,800 32,200 32,200 35,000 RM322,000 Expenses Cost of goods sold 5,400 8,400 9,600 9,600 9,600 7,200 8,400 12,000 13,200 13,800 13,800 15,000 126,000 Accounting/ legal services 1,000 400 1,400 Advertising 1,000 50 50 50 50 50 50 300 50 50 50 50 1,800 Bank fees 15 15 15 15 15 15 15 15 15 15 15 15 180 Equipment purchases 2,000 2,000 Insurance 2,400 2,400 Motor vehicle 12,000 12,000 Motor vehicle fuel 500 500 500 500 500 500 500 500 500 500 500 500 6,000 Petty cash 50 50 50 50 50 50 50 50 50 50 50 50 600 Postage, printing stationery 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Rent 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 28,800 Water and electricity 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Repairs and maintenance 2,000 700 700 3,400 Staff wages 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 58,800 Telephone 110 110 110 110 110 110 110 110 110 110 110 110 1,320 Other 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Total expenses 34,325 16,975 18,175 18,175 18,875 15,775 16,975 21,225 21,775 22,375 23,075 23,575 251,300 Cash surplus/(deficit) 6,275 2,625 4,225 4,225 3,525 1,025 2,625 6,775 9,025 9,825 9,125 11,425 70,700 Bank balance Start of month 0 6,275 8,900 13,125 17,350 20,875 21,900 24,525 31,300 40,325 50,150 59,275 End of month 6,275 8,900 13,125 17,350 20,875 21,900 24,525 31,300 40,325 50,150 59,275 70,700 Page 27 Accounting 062 May 28, 2010 5.2.3 Projected profit and loss statement CEC PROJECTED TRADING PROFIT AND LOSS STATEMENT for the period June 2010 to May 2011 Revenues Sales revenue RM 294,000 Less: Cost of goods sold 126,000 Gross profit RM 168,000 Expenses Accounting/legal services 1,400 Advertising 1,800 Bank fees 180 Insurance 2,400 Motor vehicle fuel 6,000 Postage, printing stationery 2,400 Rent 10,800 Water and electricity 1,800 Repairs and maintenance 3,400 Staff wages 58,800 Telephone 1,320 Other 2,400 Depreciation of equipments 500 Depreciation of motor vehicle 1,200 Total expenses RM 102,800 Net profit RM 65,200 Accounting 062 May 28, 2010 Report on Minutes Minutes of Meeting of CEC Trading Ltd held on 7th April 2010 at 1330 hours. Present: Vivian Ngu Yen Shya Faiznur Dilan Wong Wen Yi Wong Soon Siong Damilola. Absent: None Secretary: Faiznur Dilan Location : Library 1. It is resolved that Vivian Ngu be appointed team leader. 2. It is decided that our business should be a trading business. 3. The name of our business should be CEC, which stands for convenience, easy and collectable. 4. The product that we had agreed on is Nano Energy water flask. The next meeting is decided to be held on 14th April 2010. Minutes of second meeting of CEC Trading Ltd held on 14th April 2010 at 1415 hours. Present: Vivian Ngu as chairman Faiznur Dilan as secretary Wong Wen Yi as committee Wong Soon Siong as committee Damilola as committee Absent: None. Secretary: Faiznur Dilan Location : Library The discussion during the meeting: Tasks Done by 1. Dividing on the tasks to play by every members Vivian Ngu , Faiznur Dilan, Wong Wen Yi, Wong Soon Siong, Damilola 2. Design logo of CEC Company. Wong Soon Siong 3. Deciding the cost of the water flask and the expenses. Vivian Ngu, Wong Wen Yi 4. Deciding the special features about the water flask. Damilola, Faiznur Dilan The next meeting will be held on 21st April 2010. Signed by:___________________ Minutes of Meeting of CEC Trading Ltd held on 21st April 2010 at 1200 hours. Present: Vivian Ngu as chairman Faiznur Dilan as secretary Wong Wen Yi as committee Damilola as committee Wong Soon Siong as committee Absent: None. Secretary: Faiznur Dilan Location: Library The discussion during the meeting: Tasks Done by 1. Business and marketing plan Damilola, Faiznur Dilan 2. Operation Wong Wen Yi, Wong Soon Siong 3. Sales and promotion Damilola,Vivian Ngu 4. Financial projection Vivian Ngu The next meeting is decided to be held on 5th May 2010. Signed by:___________________ Minutes of Meeting of CEC Trading Ltd held on 5th May 2010 at 1400 hours. Present: Vivian Ngu as chairman Faiznur Dilan as secretary Wong Wen Yi as committee Damilola as committee Wong Soon Siong as committee Absent: None. Secretary: Faiznur Dilan The discussion during the meeting: 1. Combined and finalized every section that had been divided to each member. 2. Edit some of the information in several sections and some additional information is added. 3. Discuss about which part should be focused on, in the presentation slides. 4. Preparing the slides by every member. Reference Lists

Conflict Resolution Essay - 942 Words

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Installing Perl Modules From CPAN

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Influence Of A Caregiver s Personality And Resiliency On...

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Master At Greenville Technical College - 947 Words

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Embryonic Stem Cell Research And The American Society

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Effective Communication and Interpersonal Interaction in Health and Social Care free essay sample

Effective Communication and Interpersonal Interaction in Health and Social Care Of the two theories I considered, the one of greatest relevance to practice was Argyle’s Theory. This theory was most relatable to experience and the logic of it made it understandable in terms of how it was applied in practice. There was nothing irrational about the way this theory worked, it was straightforward and accessible to a reader who wished to take a particular circumstance into consideration and apply the theory to it. In comparison, Tuckman’s theory was relatively vague and did not consider anything to do with how interaction took place outside of a group setting. The Communication Cycle of Argyle’s also made each stage of the process easier to consider and I could also think about how dependent each stage was on the latter or next, in terms of its potential outcome. One thing I did consider a disadvantage of Argyle’s Theory, was the fact that Argyle did not consider the actual context of where the communication took place. For example the way that furniture was arranged in relation to where people communicated with one another. It was quite mechanistic and structured whereas human communication often is not. Argyle has expressed that eye contact is vital and facial expressions are the key to communication, however he makes little mention of how this can be achieved in relation to the cycle and how environment and context influence the way in which people are able to communicate. If people are unable to define facial expressions because of shadows and lighting in a room then what they are trying to express is lost. If there is a need to be able to make eye contact and define facial features then the need should be there to be in the right setting in order to be able to distinguish between the non-verbal communication they are making and the potential for misinterpretation in what they are conveying needs to be acknowledged. One example of how Argyle’s Theory is observable in practice is in the hospital setting, for example on an orthopaedic ward. The communication would start when an idea occurs; the orthopaedic patient is bored, he thinks it a good idea to buy a crossword. The patient would then secondly code the message. This would be the patient putting their wish to buy a crossword puzzle book into whatever medium they chose wish to communicate with. This might be in the form of a text message to their family, words to the nurse on the orthopaedic nurse or in through sign language. Thirdly the Patient would send the message; by this point the patient has conveyed the message through communication that they would really like a crossword puzzle book. Next would be the message being received, This is where the family of the person they are planning to visit in the afternoon receives the text message, or the nurse on the ward hears that the patient would like to make a request for something. The message would have been decoded at this point. This is when the relatives or the orthopaedic nurse must now decode what is being asked of them. This example is relatively straightforward but it should also be remembered that if someone has difficulties in communicating what they want then the message might be lost in translation along the way. For example if the person with the broken leg has had a stroke and their speech has been affected then what they want and what they are actually able to ask for might be two very different things. If the message is decoded wrongly by the patient’s carer who wants the crossword puzzle book then he might not actually get what he wants. Finally the message would be understood; if decoding has occurred correctly then the message about what the orthopaedic patient wants will have been understood and the cycle can begin again. Tuckman’s theory can also be applied to practice. For example; four health care practitioners; an occupational therapist, a mental health nurse, a ward nurse and a consultant are being asked to form as a group, without first knowing one other. In order to establish a dynamic between each other they need to share some lived experience together where they can begin to communicate and get to know one another. The first stage of communication here could be termed ‘Forming’, which would be used to help in bonding members of the group and help the individual members be more open to speaking. The second stage would be ‘Storming’, where ideas of individual members of the group might conflict with one another and where individual viewpoints could cause them to oppose one another and potentially compete for leadership. The third stage of communication would be ‘Norming’. In this stage, aggression will fade and the group will potentially reach consensus about care packages, discharge decisions and other important issues. The fourth stage would be the formation of the ultimate performing group where all members interact together without conflict. By this stage they will get along together both personally and professionally and even if there is a difference in opinion between group members this can be resolved in an appropriate manner and nobody takes insults personally, they are just seen as a process in professional decision making. The final stage of group communication would be ‘adjourning’. This is when all group members have essentially completed their role and with it being regarded as complete, they all go their separate ways as they feel they have contributed sufficient to their initial task in the group. Argyle’s theory of communication might not be able to be applied in situations where there are might be language barriers, or there could be a situation in which one of the communicators might have a cognitive difficulty which results in their learning difficulty impacting on the communication process. Also the importance of eye contact and facial expressions might not be able to be applied if the is a blind or partially sighted person involved in the process of communication. Deaf or hearing impaired people may also struggle to apply the communication cycle to their everyday life because not everybody knows how to sign or use makaton as an alternative method of communication. In instances where people lip read, it may be an issue of whether hearing people who overlook this problem do not make their face readily accessible for interpretation by the deaf or hearing impaired person. Despite changes in the way that we communicate with others, Argyle’s communication cycle is still relevant. It explains relevantly and clearly how we function as we listen and communicate information to others. Even in light of all the technological advances that have happened since Argyle’s Theory was first established, Argyle’s Theory is still very relevant. His theory would be relevant in many situations such as; Job interviews – when you are engaging professionally with someone and attempting to convey information and communicate to someone how capable and well you could be if appointed to a role. When speaking to friends and family during conversation over Sunday lunch at the dinner table. You would use individual communication to tell a waiter/waitress what you would like to order in a restaurant or over the counter at a cafe. Argyles theory is also flawed in its ability to explain how successful e-mails, social networking and text messages can be. Many people across the world use social networking and texting to stay in touch with people, a lot of the work environment involves organising things by e-mail and doing the paperwork instead of having a fully-fledged conversation due to the busy hectic life of work, this now means more can be done in the space of time one spends at work. This begs the question; ‘how does e-mailing and texting/social networking create an effective one-to-one communication? Tuckman’s group theory may not be applicable to certain situations. For instance; Cassidy (2007, 416) said that Tuckman’s â€Å"storming† stage might not be a very applicable stage for practitioners outside of therapeutic groups. Tuckman’s theory could be still relevant but it depends on the context. It is definitely still relevant in work situations and meetings where the need to be professional still exists, however in modern life where informality is often the norm in social settings, it is not such a big deal any more. People tend to use more technologically advanced materials now than they did in Tuckman’s era and Tuckman’s Theory is not hugely detailed in structure, although this can be regarded as an advantage in comparison to other more complex models of communication offered by other theorists if communication. For instance; ‘The Tubbs Model of Small Group Interaction’ is more detailed and includes more about what would happen within the group formation. However there are fewer stages than Tuckman’s theory. Tubbs’ theory includes things to do with background factors, internal influences and what would happen consequentially. This model has a lot more detail than Tuckman’s theory does and it makes it easier to understand the process of the formation of a new group. Tuckman’s theory compared to Tubbs’ does not seem as useful in this light because it appears that Tubbs’ theory would be more applicable to situations because of the way he has expanded and added extra explanations that have been considered. (Tubbs 1978, 1998, 41) The only thing that Tuckman’s theory has left to explain is the fact that one would need to explore the sturdiness of the categories. There is some overlap between the stages in Tuckman’s model of communication and the differentiation is not very precise. An example of this would be; ‘when group conflict is waning†¦ feelings of cohesion may be increasing, but these time-dependent changes do not occur in a discontinuous, step like sequence’ (Forsyth 1990: 89). However, the acceptance of the model isn’t simply a matter of some memorable headings. A lot of theorists and commentators have used the categories (often re-titled) with only slight alteration.