Introduction
World War Two was an unpredictable historical world event that began in September of 1939. The war broke after Britain and France declared war on Germany after it invaded Poland. Although the multinational conflict was predictable the causes that triggered World War 2 were more complex than the anticipated Poland invasion by Germany because the involvement of other world-leading superpowers in the war was not anticipated to spread beyond suppressing German rule and responsibilities over the conflict. The war was not predictable to go to such magnitude because after the assessment of World War One Germany was entered into a Versailles treaty that expected German to cover the damages caused and also bear responsibility for World War 1. The terms of the treaty of Versailles blamed Germany for starting World War One so it was not anticipated that they were going to cause any other global war. This classification of Germany by the entire world to bear responsibility and pay damages only instigated German hostility and triggered them to invade Poland a weaker nation to compensate for the losses incurred. Again the disarmament of German following the First World War was a predictable warning sign to show that they were going to retaliate from the compromising position the rest of the world was pushing them to.
Following the compromising situation, world leaders placed Germany as crucifying punishment from their instigation party in starting World War One was a blind spot that pushed them to find a way out of the situation they were in causing the outbreak of world war Two. The dissatisfaction of the German people from the treaty by Woodrow Wilson and his team made living expenses very high and the failure of the world peace efforts through the League of nations movement. The world leaders should have made peace better making peaceful resolutions rather than crucifying Germany for the wrongs that had been instigated equally by all nations. Again their systems of making peace were creating more animosity among Germany and other European countries causing the start of World War Two. These events were initially unpredictable because the concerned parties lacked creative strategies to reduce the Germany power over other weaker nations neighboring its boundaries as world peace promotion.
Summary of the Driving Forces on the Blue Cross Blue Shield Massachusetts
Blue Cross Blue Shield Massachusetts is encouraged to take an initiative of treating their health insurance clientele as important people as they would impact on their performance. Their interests should tie with those of health insurance clientele to avoid cases of misunderstandings impacting on fear to keep staying in the company. The company should strive to keep loyalty to health insurance services (Massachusetts Department of Public Health, 2013). Shareholders are the major players in the company, so timely communication with them is crucial and it is the duty of the company to always keep them up to date (Grumbach, 2013). Effective communication is important because it gives the company a good reputation in the eyes of all thus attracting more customers to buy their products who would, in turn, increase their profitability.
Positive Predictable Impact
Corporate code of conduct is guidelines governing the functioning of the company. It sets out standards to be complied with and pathways to right decision making. BCBSMA has taken heed on the guidelines by ensuring that they offer good quality and comprehensive insurance products with zero tolerance to risks (Boros, 2013). However, Blue Cross Blue Shield Massachusetts breached the rules of governing them when implementing "pay-to-stay" reason overexploitation of shareholders is not the best practice as the company tapped cash menacingly from them. They were using the term "invest for growth" attracting many to pull out monies from their pockets hoping for the best of returns. It was confident that the practice would not break the competition rules but in turn, it condemned for receiving millions of money by demanding cash from health insurance clientele. BCBSMA engage in unethical business practices despite the fact that it is depended upon by smaller health insurance clientele operating under smaller margins. These smaller people would suffer the fate of being lured by bigger companies who have bigger market share (Sinaiko, Landrum, & Meyers, 2017). The company uses some form of poor payment maneuvers asking health insurance clientele to pay for future contract consideration. Furthermore, BCBSMA did not focus on working well with its health insurance clientele and shareholders instead of scaring them away due to greater demands of money meaning they do not run their business with integrity. This, in turn, would limit its loyalty with the people and with time decline of their profitability since people would run away from exploitation and seek for other places where they would hide. Companies are not allowed to maintain its position in the market by engaging in unjust and irrational terms of payment. BCBSMA initially bragged that its "pay-to-stay" arrangements would not violate the stipulated rules governing the law of competition but they did not succeed because they were trapped due to dispute of their code of conduct.
BCBSMA Negative Unpredictable impact
After adopting the "pay-to-stay" arrangement, BCBSMA was shadowed with consequences one being losing its customers one by one posing a sense of danger that their business could decline. It also scared away potential buyers who would increase their growth in the market. The Committee of Sponsoring Organizations (COSO) came up with a framework to aid businesses in examining their systems (Duncan, 2014). The framework laid down regulations which govern businesses if complied with leads to accomplishment of set targets and objectives. COSO came up with a project that companies can use to identify risks and ways of mitigating them. The need for Enterprise Risk Management (ERM) arose because it entails crucial guidelines enabling companies to deal with uncertainties which occur. ERM model aids companies to easy identification of risks, decide on what to do either to avoid the risk, reduce it, share or accept that it has occurred (Sinaiko, Landrum, & Meyers, 2017). Companies using ERM are over and above others in terms of performance and profit realization because they are ahead in preventing risks from occurring which would lead to losses. This is because the management is able to identify the most affected areas and handle them as early as possible before it persists to avoid losses (Boros, 2013). ERM model also enables the company to utilize its resources efficiently and enable better market management, dealing with competition, coping with economic conditions and increase its leverage. The board members of BCBSMA are responsible for dealing with risks throughout the financial year ensuring that proper ways of mitigating them are adopted in order to keep the company going as per their set objectives (Heberlein, Brooks, Guyer, Artiga, &Stephens, 2012). The board delegates the reviewing of the risk handling process to audit committee who go through the company's report and give feedback to the board whether it is suitable and there is the effectiveness of managing risks or not. If it suits the company they adopt it and if not, they should manipulate it and reset other measures of managing the risk occurrences.
BCBSMA Wild Card
Internal control system being one of the layers used by BCBSMA to deal with their risk occurrences is a process of significance due to its assurance to the company meeting their goals by proficient and effective operations, reports on financial matters is consistent, rules concerning the law of competition are abided by and also ensuring that the assets of the company are protected (Duncan, 2014).. With the internal control system, the company can also take important steps to draw action plans on what to be or not to be done so as to attain the set targets and deal with risk occurrences appropriately. Good communication with the stakeholders at large is the key thing BCBSMA should consider. It matters a lot because it will reach all the people and has first-hand information to what needs suit its people hence working on both their interests and those of the people around them. This would maintain their relationship thus increasing its sales hence profitability (Boros, 2013). Monitoring of the internal control system should be done by BCBSMA to ensure that all the tasks are carried out in the right way and the company is progressing. BCBSMA also requires an integrated framework as it lays down strategies which lead its activities, utilizing its resources in the correct way, following consistency in giving reports and also abiding by the laws and regulations. With the above, BCBSMA can well manage its challenge of poor image of the company regarding "pay-to-stay" initiative and continue with its processes peacefully thus maximizing on all benefits.
References
Boros, A. (2013). Annual Report on the Massachusetts Health Care Market August 2013, Massachusetts Center for Health Information and Analysis.
Duncan, I. (2014). Managing and Measuring Healthcare Intervention Programs, 2nd ed., Winsted, CT: Actex Publications.
Grumbach, Kevin (2013). The Patient-Centered Medical Home Is Not a Pill: Implications for Evaluating Primary Care Reforms. JAMA Internal Medicine. 173. 20. 1913-1914.
Heberlein, M.; Brooks, T.; Guyer, J.; Artiga, S. &Stephens, J. (2012). Performing under Pressure: Annual Findings of a 50-State Survey of Eligibility, Enrollment, Renewal, and Cost-Sharing Policies In Medicaid and CHIP, 2011-2012, Washington, DC: Kaiser Commission on Medicaid and the Uninsured Population.
Massachusetts Department of Public Health, (2013). A Profile of Health among Massachusetts Adults, 2011: Results from the Behavioral Risk Factor Surveillance System, Boston: Bureau of Health Statistics Research and Evaluation.
Sinaiko, A; Landrum, M. & Meyers, DJ. (2017). Synthesis of Research on Patient-Centered Medical Homes Brings Systematic Differences into Relief. Health Affairs. 36 (3): 500-508.
Werner, RM; Rita, T. & Kim, M. (2013). Quality improvement under nursing home compares The association between changes in process and outcome measures. Medical care. 51(7):582-588.
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