Mcdonalds Competition Against Burger King

Mcdonalds Competition Against Burger King McDonalds is one of the best global foodservice retailer which has more than 32,000 local restaurants serving more than 60 million people in 117 countries each day. More than 75% of McDonalds restaurants worldwide are owned and operated by independent local public. The Company serves the world some of its favourite foods World Famous Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. The history began with our founder, Ray Kroc. The strong foundation that he established continues today with McDonalds vision and the commitment of our talented executives to keep the shine on McDonalds Arches for years to come. . Its head office is located in Oak Brook United States. McDonalds Corporation is the worlds largest chain of fast food restaurants, working worldwide in 117 countries with 400000 workers. It has 60 Million customers with 32000 restaurants worldwide. A franchisee, an affiliate, or the corporation itself operates every McDonalds restaurant. The corporations reve nues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. Its net operating income for the year ended 2010 is $7.673 Billion. The type of the company is public. Time Line: 1940: Dick and Mac McDonalds open MacDonalds Bar-B-Que restaurant on Fourteenth and E streets in San Bernardino, California 1948: Dick and Mac McDonalds opened the 1st drive thru restaurant in San Bernardino, California. 1949: French Fries replace potato chips on MacDonalds menu 1954: Ray Kroc becomes the first agent of franchise for the McDonalds brothers. 1955: Ray Kroc opens 1st McDonalds in Illinois. 1957: McDonalds started knowing for the motto QSC. 1959: McDonalds started billboard advertising. 1961: Ray Kroc acquires McDonald brothers for $2.7Million. 1963: Ronald McDonald made his debut in a way to attract more children and families. 1965: Television network advertising begins. 1969: The new design for the restaurants roof introduced to replace the red and white design. 1984: Training started providing for every level of McDonalds management worldwide for quality assurance. 1995: The new advertising theme have you had your break today? debuts. 2004: ISO 14000. 2005: 50th Anniversary. 2008: introduces the most broad global packaging design in the brands industry Burger King: Burger King is the 2nd largest fast-food chain, behind only McDonalds. The company franchises more than 10,400 restaurants and owns about 1,000 for a chain wide total exceeding 11,455, with locations in all 50 states and 56 countries. The company serves 15.7 million customers each day and over 2.4 billion Burger King hamburgers are sold each year across the world. In the late 1990s and into the new millennium, Burger King was plagued by falling sales and deteriorating franchisee relationships. Burger Kings parent, Diageo Plc, sold the company to a group of investors led by Texas Pacific Group in 2002. Miami entrepreneurs James McLamore and David Edgerton founded Burger King Corporation in 1954. Five years later, they were ready to get bigger their five Florida Burger Kings into a all over the country chain. By the time they sold their company to Pillsbury in 1967, Burger King had become the third largest fast-food chain in the country and was on its way to second place, after industry leader McDonalds. Time Line: 1954: James McLamore and David Edgerton establish Burger King Corporation. 1957: The Whopper is launched. 1959: The company begins to expand through franchising. 1963: First Burger King outside the U.S. in Puerto Rico 1967: Burger King is sold to Pillsbury. 1975: Burger King introduces the drive-through window 1977: Donald Smith is hired to restructure the firms franchise system. 1978: BKC introduces new line-up of sandwiches (fish, steak, chicken and ham) 1979: BKC introduce breakfast menu 1982: Burger King claims its grilled burgers are better than competitors McDonalds and Wendys fried burgers. 1983: BKC introduce The CroissanWich 1988: BKC launches We do it like youd do it add campaign 1989: Grand Metropolitan plc acquires Pillsbury. 1997: The firm launches a $70 million French fry advertising campaign; Grand Metropolitan merges with Guinness to form Diageo plc. 2002: A group of investors led by Texas Pacific Group acquire Burger King 2004:Subservient Chicken is launched 2005: BK Chicken Fries are introduced 2006: BK goes public limited company 2007: 50th anniversary of the WHOPPER SANDWICH Main Topic This report consists of different operations, research development of products, innovation, changes, and competitiveness of McDonalds and Burger King according to the requirement of this course work. How they do research and developing new products, how they manage their product and service quality, how they taking competitive priority on each others, and which systems and approaches they following to make their businesses successful in this competitive environment and satisfy their customers where expectations of the customers are very high and changing their needs rapidly. Compare and Contrast of Operations How They Cook The main difference can be seen in the kitchen of these two restaurants. How they prepare their burgers for customer like McDonalds cooks their burger by a batch process where as Burger king make their burger by a machine paced assembly process. McDonalds Batch Process McDonalds fries their burgers on a big platen in batches of up to twelve. Two ore more than two batches can be on platen at same time in different stages of cooking. When a worker in the back says Quarter Pounders Up a complete batch is ready at the same time Burger King Broiler Process Burger king cook their burger on continuous chain broiler. Semi prepared burgers are put on one end 80 second later they bring out the other end its cooked. This sort of machine paced assembly process is very common in industrial manufacturing processes. Teamwork VS Assembly Line As both of these companies following two different strategies of operations like Mcdonalds batch process and King Burger assembly line. As in McDonald 12 hamburger are prepared in same time. They are hand seared after 20 seconds on the grill, turned at sixty seconds and pulled at hundred seconds. When they come off workers over there must fastly add condiments wrap and shelve them. If there are two batches going there in different stages of cooking then its mean that speed is more essential part to keep production on going. So its mean the staff must be motivated or the process gums up. Staff must be cooperative and willing to help in another area in case of help required. Burger King Here in Burger King there is no matter at what speed burger are prepared once they are cooked the rate limiting step is the cooking itself. One burger in a time comes off the chain broiler at the rate of 8 per minute, maximum. The machine makes the process fast. As long as you can do your job of assembly process in seven and half seconds per burger that all which is required. Fast and Quick Service(Just In Time) How McDonald can stay on top? The answer id that when it is running good, the batch process allows for much greater throughput and faster speed of services. Speed plays an important role in the popularity of food store. The batch process of McDonald can prepared 300 burger in one hour where as 200 for the continuous chain broiler of Burger king. There are standard given by each restaurant for speed like McDonalds is faster than Burger king because prepared burger for 3 minutes where as McDonalds delivered only in 90 seconds. Capacity Planning McDonald McDonalds has a very strict standard for food preparation and its their goal to facilitate their customer as fast as they can. To meet this goal they set a plan of inventory of food production to meet surges in demand. There are strict limits how long the food can remain in inventory limits the amount of inventory can be made this food limit allow to McDonald create a level between its production and the workforce required. This sort of strategy is called level production. Burger King Burger king is using another sort of strategy. They once promoted their burger using a have it your way philosophy because Burger assemble burger when they receive an order, because product is made when the demand appears. So Burger King has variation in labour need and this is the reason for customer to have wait. They nevertheless provide a product geared according to the requirement of customer. This sort of strategy is known as chase demand. Quality Control Burger King: uses the customer and market oriented surveys to manage the quality of service on regular basis. HSSP (Hazard Analysis Critical Control Point) program is the execution of strict operation and sanitation procedures. Our food safety program employs a broiler design and meat cooking procedures that fully cook products, killing any potentially harmful bacteria. McDonalds: Q.S.C. V. Provide good quality, services to customer. Uses a cleanliness environment when customer enjoys their meal. The value of food product makes every customer is smiling. Price: Burger King uses affordable prices for quality food strategy so that its prices are less than its competitors. McDonalds came up with very high prices. The Company has certain value pricing and bundling strategies such as happy meal, combo meal family meal etc to increase overall sales volumes. Product: McDonalds doesnt offer just burgers their well-diversified menu is also one of the key success factors. Burger King: Burger King is offered flame-grilled burgers and offering a variety of food and other products those fulfilling the demands of all segments of society. Layout of Restaurants: McDonalds: Restaurants have included a playground for children and advertising geared toward children. The new strategy of re-designing of layout of the braches create natural style with a particular emphasis on comfort introducing lounge areas and fireplaces and eliminating hard plastic chairs and tables. These facilities give comfort to customers and create satisfaction. Burger King: The lay out of the restaurants are very wide and people could comfortably spend time with their food. Branding: McDonalds: Has partnership globally with Coca Cola to sell their drink with their menu Burger King: Has also co branding contracts with Coca Cola worldwide. Innovation: Innovation is the lifeblood of any successful business. In modern times, demand and expectations of customers are high and looking for change. The companies have to act accordingly to beat the competition and their survival. McDonalds has continuously introduced new products. The introduction is time such that the new product does not cannibalize the product already in the maturity or growth stage. A perfect example of renewing a product in decline phase French Fries have been an important part of the McDonalds menu worldwide. In an attempt to revive the Fries, Macdonalds amend and re-launch it with new name and style Shake Fries. This is being served with spicy spice mix, which has resulted in increase in the sales of French Fries and has elevated it from to the decline stage. The company is also focusing on nutrition and healthy food options for their customers. Burger King innovations in nutrition, quality, value and taste are all important attributes that can help our guests and their children make choices that promote healthy living. In July 2007, BKC identified two cooking oils with zero trans-fat that passed our rigorous operational, supply and consumer criteria; allowing us to start providing all of our restaurants in the U.S. and Canada with zero trans-fat oils. In 2008, we initiated a limit of 600 milligrams or less of sodium in all of our Kids Meals advertised to children under 12 years old. In May 2009, we introduced lower sodium CHICKEN TENDERSÂ ®, reducing sodium by 36 percent. BKC has joined the American Heart Associations (AHA) Industry Nutrition Advisory Panel (INAP), a partnership between the AHA Nutrition Committee and food industry leaders. INAP brings together representatives from the food industry and science to share information and plan cooperative programs in the areas of diet and nutrition and cardiovascular disease. Maintain Quality, Value and Taste: Nutritionally balanced products should still taste good. If our foods are nutritious and taste great, parents will order, it and kids will eat it. The Burger King always searching new ways to develop new product not only for variety in term of quality of food and nutrition for health of their customers. The are some latest innovations from Burger King BK BURGER SHOTSÂ ®, with BKTM Fresh Apple Fries, MINUTE MAIDÂ ® apple juice, CHICKEN TENDERSÂ ® with BKTM Fresh Apple Fries, Hamburger with BKTM Fresh Apple Fries, Philosophy of McDonalds: McDonalds consider People its philosophy. They provide the best employment experience for our employees to achieve their goals of providing our valued customers with the worlds best quick-service restaurant experience. They strive to recruit the best, hire the best, and provide the best place to work. People: The Company is the well aware of value of both its employees and customers. It knows the reality that a happy employee can work well with conclude as a happy customer. Human resources continuously working on finding new ways to motivate their customers (employees). The company focuses on critical hiring, best training and motivating employees through best pay structure and benefits. Philosophy of Burger King: Philosophy of Burger King to give option to customer to choose the food and we innovate. Burger Kings goals seemed quite clear. They want to individualize each customers order and provide the fastest service possible. Burger King gives the customer many choices and to accurately and quickly provide whatever the customer chooses. This policy is reflected in their slogan, your way, right away. Operating under this policy makes it very easy to achieve their goals. To facilitate fast service Burger King takes customer orders on a continual basis. One employee takes the customers order, the customer then moves down the line where another employee is preparing the order. Customers also get their own drinks while they are waiting for their meal. Burger King providing the innovative and healthy food options to their customers. Problems: Burger King Corporation is the second largest fast food restaurant chain in the world and growing their franchise network through globally. The company needs to do a lot to sustain the performance in this competitive environment. Burger King has good operational systems designed to provide customers with efficient and responsive services. The success of the operational system of Burger King is directly related to the degree of co-operation and co-ordination among these three subsystems. Any attempt to improve the efficiency, quality and responsiveness of the operational system must focus on these subsystems and their interactions. On the other hand increasing customers demand and expectations are challenges. Burger King is facing the following some problems in operations which affecting the quality services as compare with competitors: Staff motivation Inventory systems Equipment upgrade Customer accessibility Recommendations: Based on the analysis we can conclude that The Company should start by solving their internal issues so that they could perform batter and could achieve their objectives: Staff Motivation: The turnover rate is high employee are not staying long due to lack of motivation. The company should focus on retaining their staff. The company should plan an internal marketing so that they could address these issues. For this the company should give their employees tailored made training to serve the customers and coordination between them. The structure of the pay should be revised as per market based and give them incentives and benefits on their best performance. They should organize the team building activities to create team bonding within the teams. Inventory Management Systems: The company is using inventory and supply chain systems those are not latest and affecting the efficiency of the company, due to this company is facing the inventory wastage and storage expenses. If the company do focus on improving, inventory systems that could reduce the cost of materials handling and waste. Equipment: The company is the second largest company and need to update about the technology and equipment those are using within the operations. The company is spending huge amount of money on marketing, innovation and employee but if the food processing equipments not giving desired out could lead to loss of revenue, service and resources. The company should up-grade the systems that will help the company to perform better. Customer Accessibility: Burger King is facing very fierce competition. The company has less accessible to their customers as compare with the competitors like MacDonalds that why company is losing the business. Although it could, addresses in long term but very necessary because if you spend on product development, sourcing material and advertisement globally then you need to reach the customers accordingly. In this contest, you are not getting the right business due to fewer stores geographically. Conclusion Burger King: This age is competition and innovation with better management of the resources. It is a very strong chain of fast food restaurants all over the world. Being in maturity stage it has high opportunities of introducing its new products and growth. In future, it will be expanding its chain by introducing more outlets in more countries. Although in McDonalds there may be more problems than Burger King but the fact is there cannot be a perfect one in the world. Every organization has its internal problems but Burger King is what it should not be. Because people rely on it hugely. Burger King should serve people with true spirit of the company vision. Personal Reflection: Personal Description and Expectation I would like to describe myself as a very pleasant, diverse, energetic and committed person. I think one of my most distinguishing characteristic is my professional experiences and the business degree I am carrying under my belt. Along with my business education, my experience with the contact centre industry, peoples management that provides me sufficient exposure to manage a team, focuses on the performance and peoples management and delivering quality services. The visionaries place the customer at the core of their organizations business systems. In fact, it takes a visionary to see the mass market, assemble the financial and human resources and be the winner at the market place. My previous experience of management and leadership push me to learn advance techniques of business from the best business school in London. I have known about the practical processes of the business but not have idea about the philosophies of the business and culture of the multinational organization around the world.. Learning Outcomes: When I have started this module in the college and start reading books and other readings found this a real practical course. The theory of quality services and operational strategies I have read were those we were practising in the office in routine. Then I start associating these theories and knowledge with my previous experience that helped me to learn and understand the practices in real world. Learning and Development: With the help of previous practical management experience and latest operational techniques up to date practices I feel very clear changes in my perception about operations. In the past, I was following the pattern, which was designed by the top management to implement the policies. I never challenged those policies and practices due to lack of knowledge and expertise. After completing these multinational corporations operational management approaches I feel very comfortable and confident to take new challenges and responsibilities in future. It gives me in-depth knowledge and practical exposure about the subjects, which help me to start analytical and critical thinking about the projects.

Essay --

STAGE 1: Entrenchment The first stage of conflict escalation develops when a divergence over some issue or frustration in a relationship proves resilient to resolution efforts. The problem remains, and leads to irritation. The threshold to stage 2 is taken when one or both parties lose faith in the possibility of solving the problems through straight and fair verbal discussions. STAGE 2: Debate The parties look for more firm and stronger ways of pushing through their standpoints. The dispute is no longer restricted only to a well-defined issue, but the parties start to feel that their general position is at stake. Debates are no longer only focused on which standpoint has more merits, but also on who is most successful in promoting the standpoints, and how the outcomes of the debates affect one's reputation. When rational and issue-relevant arguments don't promisingly ensure success, the parties resort to "quasi-rational" argumentation, such as the underlying causes of the present problems avoiding blame; strong exaggeration of the implications and consequences of the counterpart's standpoints; suggestive comments about the relation of the central issue with other concerns, linking the issue to larger value ideologies, reference to recognized authorities or tradition in order to gain legitimacy for a standpoint; stating the alternatives as extremes, in order to get the opponent to accept a "reasonable compromise." Discussions now turn into debates, where inflexible standpoints collide. The growing mistrust creates a sense of insecurity and loss of control. Efforts to control the counterpart belong to later escalation stages. The threshold to stage 3 is related to the basic right of each party to be heard of mutual interest. S... ...the adversary. When a party is attacked in a way that threatens to shatter it, it is forced to make strong efforts to suppress internal conflicts. The only restraining factor is the concern for one's own survival. The threshold to stage 9 is reached when the self-preservation drive is given up. When this happens, there is no check at all on further destructiveness. STAGE 9: Total destruction In the last stage of conflict escalation, the drive to annihilate the enemy is so strong that even the self-preservation instinct is neglected. Not even one's own survival counts, the enemy shall be exterminated even at the price of destruction of one's own very existence as an organization, group, or individual. All bridges are burnt, there is no return. The only remaining concern in the race towards the other side is to make sure that the other side is equally destructed too.

Thinking

I am thirty four years of age. I'm originally from Trinidad and Tobago W. L. Came to America twenty years ago, lived in Brooklyn New York, and attended south shore high school and graduated. I'm a very proud and active mother of five children four boys and one girl. I am truly blessed to have my kids In my life. My children play a very big part in my life they are my world. My two boys play basketball, and the other two plays football, my daughter Is a cheerleader, they also o swimming.We do a lot of traveling In the summer time; explore deferent ways of life and what life has to offer, until we ended up In the state of Pennsylvania. I have been In the medical field for over fifteen years, as a companion In homes also In hospitals now am a nurses aid, I love taking care of the elderly and the mentally challenged patients. Taking care of people I enjoy and love doing, I assist my patients with activities and dally living Including bathing, dressing, eating etc.My Job requires hours of walking, standing and heavy Lifting of patients. When I'm not working I'm cooking cleaning and spending time with my kids doing adventures things, I make sure and put that time in with my children. I am a single mother doing it on my own: I think I have the motherly part under control so far. Now I'm back in school pursing my dreams of graduating from college and getting a better paying job with my degree. My kids support my every step, and I am so excited to be back in school.

The Require Method in Ruby

The Require Method in Ruby In order to create reusable components, ones that can be easily used in other programs, a programming language must have some way of smoothly importing that code at run-time. In Ruby, the require method is used to load another file and execute all its statements. This serves to import all class and method definitions in the file. In addition to simply executing all of the statements in the file, the require method also keeps track of which files have been previously required and, thus, will not require a file twice. Using the 'require' Method The require method takes the name of the file to require, as a string, as a single argument. This can either be a path to the file, such as ./lib/some_library.rb or a shortened name, such as some_library. If the argument is a path and complete filename, the require method will look there for the file. However, if the argument is a shortened name, the require method will search through a number of pre-defined directories on your system for that file. Using the shortened name is the most common way of using the require method. The following example demonstrates how to use the require statement. The file test_library.rb is in the first code block. This file prints a message and defines a new class. The second code block is the file test_program.rb. This file loads the test_library.rb file using the require method and creates a new TestClass object. puts test_library includedclass TestClassdef initializeputs TestClass object createdendend #!/usr/bin/env rubyrequire test_library.rbt TestClass.new Avoid Name Clashes When writing reusable components, its best not to declare many variables in the global scope outside any classes or methods or by using the $ prefix. This is to prevent something called namespace pollution. If you declare too many names, another program or library might declare the same name and cause a name clash. When two completely unrelated libraries start changing each others variables accidentally, things will break seemingly at random. This is a very difficult bug to track down and its best just to avoid it. To avoid name clashes, you can enclose everything in your library inside of a module statement. This will require people to refer to your classes and method by a fully qualified name such as MyLibrary::my_method, but its worth it since name clashes generally wont occur. For people who want to have all of your class and method names in the global scope, they can do that using the include statement. The following example repeats the previous example but encloses everything in a MyLibrary module. Two versions of my_program.rb are given; one that uses the include statement and one that does not. puts test_library includedmodule MyLibraryclass TestClassdef initializeputs TestClass object createdendendend #!/usr/bin/env rubyrequire test_library2.rbt MyLibrary::TestClass.new #!/usr/bin/env rubyrequire test_library2.rbinclude MyLibraryt TestClass.new Avoid Absolute Paths Because reusable components often get moved around, its also best not to use absolute paths in your require calls. An absolute path is a path like /home/user/code/library.rb. Youll notice that the file must be in that exact location in order to work. If the script is ever moved or your home directory ever changes, that require statement will stop working. Instead of absolute paths, its often common to create a ./lib directory in your Ruby programs directory. The ./lib directory is added to the $LOAD_PATH variable which stores the directories in which the require method searches for Ruby files. After that, if the file my_library.rb is stored in the lib directory, it can be loaded into your program with a simple require my_library statement. The following example is the same as the previous test_program.rb examples. However, it assumes the test_library.rb file is stored in the ./lib directory and loads it using the method described above. #!/usr/bin/env ruby$LOAD_PATH ./librequire test_library.rbt TestClass.new

Which group in the society i am part of Essays

Which group in the society i am part of Essays Which group in the society i am part of Essay Which group in the society i am part of Essay Augusta it was when I was 8 that my parents took the decision to move to India, so that I could experience and be a part of the culture that they felt was essential for my upbringing. On moving to India, I had to live with my aged grandmother. Being extremely traditional, she insisted on eating on the floor, having a bath in the verandah and playing traditional games. Often I would be forced to play endless games of loud with her. Many a times it would be impossible for me to call friends ever owing to the embarrassment she would cause me. But all this did more good to me than bad. My experiences made me very mutable, inherently whether I liked it or not, I learnt to adjust in situations no matter how bad or untoward they seemed. India, on its own is a cultural kaleidoscope. I was bound to meet new people and learn new things. Being subjected to such cultural diversity made me appreciate the cultural heritage of various religions and groups in the society. Ate different types of DOD, prayed to an array of gods, wore a variety of clothes and interacted with people from around the world. As a result I was an amalgamation of various groups that existed in the society. This taught me that allotting a person to one group was rather impractical. A person is defined by the morals and characteristics that he has learnt over his lifetime. If asked to define the group I belong to in one line it would be a lot like Ameri can born> Indian ancestry > Hindu > Chinese food > basketball

Project Finance, Accounting and Control Essay Example | Topics and Well Written Essays - 2000 words

Project Finance, Accounting and Control - Essay Example Weaknesses of the Annual Budget The approach of annual budgeting, with the inclusion of multi variables and numerous factors, emerge as a complex process. Consequently, the approach involves many advantages along with few major drawbacks. For instance, there are many shortcomings in the annual budget preparation irrespective to different budgeting approaches. The inherited weaknesses which can be by far identified in the annual budget are discussed below: Weak Forecasting Capabilities The most critical step in the budgeting process is related to the forecasting capabilities regarding the financial resources that will be available in the future course of business operations. Immense technical expertises are required in order to forecast the revenue collection and expenses with high level of accuracy (Martinez-Vazquez, 1997). The level at which the forecasting will be made is a decisive consideration. To initiate the process of budget forecasting there are certain considerations that s hould be adhered by the executors, i.e. industry-level forecasting, corporate forecasting, product forecasting and product-line forecasting. During the process of budget forecasting, inclusion of all these factors are not considered to be complex, but in turn evolves as a time-consuming process. Consequently, the lack of forecasting capabilities makes the budget risky in executing. In addition to that, different types of problems occur that make the budget restructuring essential and therefore increases the cost (Mentzer & Gomes, n.d.). Insufficient Budget Control of Certain Funds There is lack of control over the budget in regard to certain funds that are variable in nature depending upon the period of operation. The budgeting officer needs to contact each department and analyze the debit and credits of the department in order to find out the funds’ leverage upon the department. Although incorporating this intensive technique, the budget does not have sufficient control over certain funds (New York University, 2007). These funds vary in nature and controlling them within the budgeting process limits is somewhat impossible. This tends to change the overall financial funding. Inclusively, the fund might be internal or external. Pulling the funds for the specified fund option is often misinterpreted as budgeting, which ultimately results to ineffective budget planning. Therefore, the overall planning needs to be re-planed due to the ineffective balance of the funds in the budget. Contextually, the level of control in the fund management in budgeting becomes difficult while drafting the budget for an accounting period (Flexstudy, n.d.). Profitability Index In order to forecast the profitability index, an estimation of the cost of capital is required. But this can not provide the corrective decision when applied to compute mutually exclusive projects (Peterson-Drake, n.d.). The decision may be incorrect while computing and this will result in failure of the budget of the project. The budget model is not capable of determining the profitability index to ensure the effectiveness of the financial status of the company

Toulmin Essay on how DOD buget cuts affect the basic member of the

Toulmin on how DOD buget cuts affect the basic member of the Military - Essay Example I did decide to write on the topic because as simple as it is, it can bring a justifiable case to concerned persons on the need to look at a wider perspective before deciding to do budget cuts. The military budget is part of a country’s discretionary total budget, which is mainly allocated to the department of defence. Broadly, such budgets go to any defence related budgets, which may include: paying military salaries, giving military personnel trainings, healthcare of personnel and in some cases buying equipment for the military. In measure, the DOD can cut its budget to its members, which can affect them positively or negatively. It is argued that when such budget cuts are implemented, it would result to lack of co-operation among its member states. The members of the military have become dependent on the budget. Due to this, they are able to co-operate with the DOD in any policy. But when there is a budget cut, the members will start becoming unco-operative, and at times may pull out completely from the DOD membership(Smith, page 13). Such budget cuts are useful when dealing with other priority areas that need to be funded. Budget cuts by DOD will help its members to use the money saved for other purposes like paying for healthcare insurances or providing for pensions. The money can be used to continue training and educating the military personnel. For its members, the budget cut monies can only have a positive impact if they are used directly to support the members of the military (Sullivan & Sheffrin, pages 245) . Another argument is that the military budget cuts are appropriate because in cancelling such high budget cuts on the military, there is no existing justification that they are funding a threat that may likely to occur. The argument is that it is appropriate to continue spending money for many years on what will not eventually happen, instead of using the money in diplomatic processes to