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Approaches To Risk And Uncertainty In Decision Making Business Essay

According to Cole, Organizational Behaviour is the methodical research of individual behaviours within teams or teams, an investigation of the nature of teams and the implementation of change within group buildings. He says the essence of organisational behavior is to envisage, or say control, specific and team behaviours in a bid to attain organizational goals. Organizational Behavior has a broad concept and draws from several components such as Psychology, Idea, Sociology, Economics and Politics science.

In an organization or a team, no two specific behave in the very same way. The competence of organizations will be increased through a proper understanding of the individual dynamics of employees, their value and perception systems, and the value they attach to work and their targets using their organizations (CIPMN 2007).

This study aspires to help us appreciate effective control behaviours, to understand how the framework and culture of a business make a difference its success, to outline the importance of learning and its relationship to organizational innovativeness also to evaluate how decisions are used a business.

For the goal of this paper, we will understudy the intro of Fanta Pineapple, a brand under the Nigerian Bottling Company, NBC. Coca-cola was established in 1886 in Atlanta, USA and runs in Nigeria under a franchise with Nigerian Bottling Company. With staff strength around 6000 people, over 200, 000 sales outlets, more than 80 warehouses and sales depot and 16 bottling plants churning out about 34 brands, NBC gets the highest sold non-alcoholic beverage drinks in Nigeria today and is the largest company of carbonated drinks in Western world Africa.

APPROACHES TO ORGANISATIONAL DECISION MAKING

There are several strategies that an firm can take to make decisions. They are the Rational methodology, Behavioural approach, Practical approach, Personal approach, Prescriptive and Descriptive strategy and the Normative way (Griffin & Moorhead, 2012). The way that NBC used for this task is the Rational Way. It involves identifying a problem or need, deriving alternatives, choosing one of the alternatives with the best probable value, putting into action the plan and choosing control options. The outcome is set alongside the defined goal and when there is a disparity, some other solution is chosen to solve the issue.

NBC began experience gradual decrease in sales for over a year. The research office discovered the declining monetary situation and continuous disappearance of the center class, which resulted in a decrease in purchasing electricity of the individuals as the key culprit for the reduced sales. Several solutions were proffered how to rev up sales again. The answer that was arranged upon was put forward by the Brand building office. They suggested the benefits of a fresh product to be known as Fanta Pineapple. A team was then create to actualize this proposal.

APPROACHES TO RISK AND Doubt IN DECISION MAKING

Various methods have been developed to enable organizations manage the potential risks and uncertainties associated with decision making. The logical comprehensive way is one of these. It assumes that it's possible to truly have a method for every unexpected event which may unfold in an organization. The company management just needs to examine the cost and advantages and prepare for possible eventualities when coming up with a conclusion.

The risk identified with the launch of the Fanta Pineapple brand includes the risk of not obtaining a flavour that will charm to the marketplace, either anticipated to poor marketing drive or even an outright rejection of the new product by customers, in which case it could have cost NBC a lot of money to put the product together and obtain it to the marketplace. NBC ideas to mitigate this risk by sampling market opinion of how they might want the product to taste, bearing in mind that the majority of the Nigerian populace is sugar conscious. In addition they chosen creating early on market awareness by sensitizing possible customers about the forthcoming product using different types of advertising.

LEADERSHIP THEORIES

Leadership is the process whereby a person in an organization harness the data and know-how of other members and stimulates them to achieve the goal of the group (Cole, 1995).

Leadership ideas are those theories that explain how a leader achieves the feat referred to above.

There are eight major ideas. A few of them likewise have sub ideas. They include (http://changingminds. org/disciplines/leadership/theories/leadership_theories. htm):

Trait theory assumes that certain people are created with inherent attributes suited for leading others. It will look at control skills as a genetic factor.

Participative Theory assumes that it is the contributions of all the participants of the team and their shared knowledge which makes a team do well, not necessarily the actions of the first choice.

Behavioural theory focuses on studying the behavior of effective and successful leaders to know what they have and the behaviours they exhibited that made them be successful. The sub-theories here will be the role theories (people defining assignments for them selves and persuading others to act out that role) and Managerial grid (that leaders have varying degrees of concerns for their associates and the job to be performed).

"Great man" theory of command assumes that leaders are blessed, not made and that great market leaders will emerge when there is a great need.

Contingency theory assumes that different organizational troubles require different authority styles and that a single individual is capable of mastering and exhibiting different authority styles, if only matching the appropriate style to peculiar situations.

Transactional management theory assumes that associates are determined by compensations and fines. Its sub theory is the Innovator- Member Exchange (LMX) theory that points out that leaders retain their position by agreeing on unstated exchanges with their members.

Transformational authority theory assumes that individuals will always follow the individual that inspires them and that vision, passion, excitement and the right amount of energy will always produce results. Its sub theories include Burn's and Bass' transformational ideas.

Situational management theory assumes that the best decision of your leader is dependent on a number of factors. It includes sub-theories like Vroom and Yetton's normative model (assumes that involvement increases acceptance, which in turn increases dedication) and Hersey and Blanchard (assumes that authority style should be adapted to suit the fans' level of commitment to the set in place job).

In a group, the personality of the leader must be at least related to the characteristics of the supporters and the task for the team.

The leader of the task has adapted a mixture of two leadership styles; the Situational leader- because this project was commissioned based on the position NBC discovers itself consequently of dwindling current economic climate and utmost participation is necessary from team members and Contingency management- because the job is seeking to expand NBC's declining revenues.

IMPACT OF MANAGERIAL STYLES ON ORGANISATIONAL EFFECTIVENESS

A Leader might not necessarily be considered a supervisor and a manger might not necessarily be considered a leader. A leader who is also in a position to take on the characteristics of an director that best complements his management style is poised to attain more in his company or team.

Below is a listing of some Managerial styles (Sunita, 2005):

Autocratic style: Utilized by a manger that is dedicated, but rigid. Single-handedly calls for administrative decisions. Rarely requests for inputs nor recognize the advice or contribution of others.

Democratic style: Utilized by a manger that promotes participation from team members and welcomes inputs and efforts. He tries to integrate associates and seeks the judgment of others before taking decisions.

Laissez Faire style: employed by care-free managers. Battles with indecision and almost never calls for real responsibility for the working of the business.

Paternalistic style: used by professionals who treat their groups as family. He protects shields and motivates associates like a parent or family brain, thereby hindering team members from actually growing and expanding themselves.

A director that methods democratic/participatory style will attain increased team success.

From the interview with the associates of the job team, it was discovered that the task leader techniques democratic style of management, rendering it easy for all users of the team to add their quota into the evolution of the Fanta pineapple.

MOTIVATIONAL THEORIES OF EMPLOYEES

Motivation theory is a thought that is designed to obtain the best out of employees and investigate the reason why employees' work in the first place.

According to Wilton (2011), the theories of Inspiration can be broadly categorized into Content ideas and Process ideas.

Content ideas centres on factors that motivate people like financial rewards, campaign, recognition, category and job satisfaction. They focus on particular types of economic and non-monetary motivators, straight or indirectly. It features theories like:

Abraham Maslow's Hierarchy of Needs: he postulated that humans have 5 basic hierarchical needs; Basic or Physical needs (food, cloth and shelter), Security, Social belonging, Ego and Self-actualization. The pursuit to satisfy these needs, one following the other, is exactly what motivates the individual to work.

FW Taylor's study of your time and Motion: expresses that work planning, job fragmentation and appropriate training business lead to most effective efficiency and delivery from employees.

Douglas McGregor's Theory X and Y: Theory X encourages professionals to be authoritarians since it says employees are lazy and would prefer to dodge work. Hence, they need to be closely watched. Theory Y says that employees just need the precise conditions and they will excel, being that they are self-motivated and ambitious.

Elton Mayo's Hawthorne Effect: can be summarized as that employees value being part of the team more than money and good working conditions and managers should encourage team work.

Frederick Herzberg's Two Factor Theory: says that employees derive increased satisfaction from motivational factors and dissatisfaction from cleanliness factors.

Process ideas centres on the procedure of desire and inner decision-making mechanism by which an individual involves a choice on the level of effort to use under given conditions.

In reality, people have diverse needs and ambition. A major role of managers in an organization is to check out the needs of these employee and offer it whenever you can to keep employees engaged.

Maslow's hierarchy of needs works with not only the members of Project Fanta Pineapple, but Nigerian employees in general. The country is underdeveloped and there's too little basic infrastructure. The federal government has not been able to provide these basic needs for the citizenry, so individuals have to provide it for themselves. NBC motivates job participants with bonuses such as allowances and promotion face to face.

THEORIES RELATING TO WORK RELATIONSHIPS AND INTERACTION

Organizational behaviour on the whole and social psychology specifically is focused on the study of how individuals interact in categories and organizations. In organizations, clubs and cultural gatherings generally, it is with interaction that we have the ability to communicate our internal thoughts, share experiences and exchange specific emails.

Several theories exist that have immediate relevance to work relationships and interaction. It offers:

Behaviourism Theory: It is in the study of relationships we make an effort to understand the concept of Norm. These are expected ways of behaving. They serve as recommendations and are adaptable. Like in the case of hierarchical specialists in a team or an organization, it's the norm to check out the guidelines of the leader or supervisor.

Social constructivism: this theory started with the task of Berger and Luckman (1966, cited in Teater, 2010). They studied how individuals create knowledge, make interpretation of the world around them and derive a realistic view of themselves. There are many other approaches that exist within the Sociable Constructivism theory like social constructionism, strict constructionism, feminist constructionism and critical constructionism. They all draw from various walks of life including mindset, sociology, idea and counselling.

Other theories are cognitive science and cognitive constructivism

It is expected that person in this Project Fanta Pineapple behave civilly, obey constituted expert even within the team, share their concerns and contribute innovative and strategies during conferences and brainstorming consultations.

CHARACTERISTICS OF ORGANIZATIONAL STRUCTURES

Organizational structure can be explained as the placement of power and circulation of skills in the business. It addresses the challenge of whether decision making should be centralized at the apex of an organization or decentralized throughout the organizational structure. This is an essential decision as just how an organization is structured immediately impacts its efficiency and how it achieves it goals and aims. It is however important to note that size is a significant determinant of how organizations are structured. In small measured organizations, decisions are centralized but the process is more technical for greater organizations like NBC.

Organizations might take any of the following structures:

Unitary (U-form) framework: Found in mid-sized organizations where in fact the company is divided into departments like Marketing, Fund, Research and development and production. The departments are headed by managers that report directly to the Managing director. Each supervisor organizes the actions of his office, relays the organization's corporate and business strategy to his members and abroad inter-departmental communication. It functions as a functional framework where hierarchical specialist ends at a point.

Managing Director

FINANCE

R & D

PRODUCTION

MARKETING

Fig 1: U-form structure

The Keeping (H-Form) Framework: this is employed by organizations that contain expanded their procedures nationally or internationally. The holding organization is similar to a father or mother company that has controlling stocks in other subsidiaries, nonetheless they don't possess control over the tactical decision making in those companies.

The Multi-divisional (M-Form) Framework: it is utilized by big organizations which is the composition obtainable in NBC. The organization is divided matching with their different functions they perform, or products or even concentrate on markets. The administrator for each division is accountable for the day to day working and some brief and medium-term decision making. This kind of framework is very effective as it removes long communication chains within each division and enables mature management focus on planning all-encompassing strategies. It may however become bureaucratic; there could be several levels before people at the low area of the company can reach people at the very top. Organizations like NBC using thus form of composition make an effort to consciously reduce bureaucracy to the barest least and in ways, mirroring the chiseled organization notion.

NBC

MARKETING & ADVERTISING

FIVE ALIVE

COCA-COLA

FANTA

SPRITE

EVA WATER

FINANCE

SALES& DISTRIBUTION

PRODUCTION

Fig 2: M-structure of NBC

There is a Crossbreed of all these organizational structures known as the matrix composition.

The Matrix Structure: it helps horizontal movement of skill, experience and information, across departmental restrictions. It's mostly employed for big projects and product development, just like the Fanta-Pineapple Job. The members of the project team were selected from various departments to be part of this task, while keeping their respective job functions. While they article vertically to their departmental heads, they also report horizontally to their project administrator. This framework is very flexible and teams can be set-up and disbanded whenever the purpose of a particular project has been achieved.

ORGANISATIONAL CULTURE THEORY

Organizational culture is the value and behaviour of an organization that makes it unique. It's the sum of an organization's knowledge style, behaviour, experience, assumption, idea and ideals that bind it along.

Organizational culture takes on an important role in helping organizations achieve goals and targets. It can help organizations to distinguish themselves and create a personality on the market place. It increases the creation of the competitive edge for a business. It can help large organizations to create a uniformity of techniques, procedures and requirements. It also really helps to imbibe dedication and constancy from the employees, particularly when such cultures are positive and unique. It encourages healthy intra-organizational competition, for example, if the organizational culture induces powerful, then employees make an effort to out-perform each other.

Some of the the different parts of organizational structures are:

Language, Terminology and Acronym: it includes the terms of manifestation, which is mostly British in this part of the world; the design of communication- formal or informal, written or verbal; and the utilization of some keywords that would only seem sensible to employees of a business.

Norms for behavior: respect for authorities, romantic relationship between employees and networking.

Prevalent command style in the organization.

Training and Development: both personal and profession development.

Organizational values and work tactics: customer-orientation, affinity for scientific breakthroughs and quality drive.

Creating a feeling of belonging and unity of purpose.

As organizations are known and determined by their culture, they may take any of the following identities (Idowu, 2002):

Collaborative of Participatory culture: where in fact the organization pays significant amounts of focus on employees and customers and worth their inputs to the performing of the business. The leadership style here's situational and the organizational structure is mainly matrix form.

Control or Autocratic culture: where the organization persistently looks for to achieve brilliance. Such organizations are like perfectionist and keep maintaining high willpower and quality criteria, even if to the detriment of employees. The management style here's autocratic and the organizational structure is usually u-form.

Cultivation culture: such organizations value creativity and technology of employees. That is common in IT oriented businesses. Leadership style her is Charismatic and organizational framework is Flat form.

Competence culture: such organizations are achievement oriented, even if at the expense of organizational integrity. They seek to be market leaders at all cost.

ORGANISATIONAL CULTURE AND Composition IN NBC

The organizational framework set up in NBC is the m-form composition, which is what works best for organizations of this size. However, for the purpose of projects, the business usually implements the matrix composition.

The business culture prevalent in NBC is the Collaborative Culture. They developed this culture through organizational efficiency. This culture shows their values, that happen to be dedication, teamwork, accountability, people, quality and integrity. The integration of the worth within the organization's techniques made it possible for those to actualize production efficiency. NBC is really as interested in their employees because they are enthusiastic about their customers. It is the customers that provide NBC its income, but it's the employees that help the organization to even get in touch with the customer in the first place. An frame of mind of brilliance is maintained over the organization, which is why they are the leading soft drinks company in the whole of Africa, and also have remained so for a long period. NBC motivate employees by giving conducive working conditions, good working tools and providing canteen facilities to encourage a unified respite time so that employees use that avenue to socialize with each other. This encourages employees to perform at perfect and helps NBC achieve its corporate and business objectives. They also have periodic meetings using their key marketers and management team, where proper communication occurs plus they get feedback on their products and services.

CHANGE MANAGEMENT IN AN ORGANIZATION

Change identifies new and sometimes, unpredicted innovations in the organization. It could be because of this of new legislation, merger or acquisition, organizational restructuring or intro of a fresh product, like is the truth with NBC. For change to truly have a positive impact on a business, it must be prepared. However, when it is sudden, organizations need to take reactionary steps to absorb it. This can be achieved with the following:

Regular trainings for employees.

Seminars and meetings to communicate improvement records and get feedbacks.

Internal reforms: taking stock of procedures, resources and job functions to see if they're being applied effectively.

Drop less effective operations and resources and undertake essential ones.

Research and development: the above are short-term adaptation. In the long run, the organization must itself become a change agent by getting into research for better functions and resources so that consequently, they may take revolutionary activities, not adaptive reactions.

In the situation of NBC, they been able this change by the:

Accepted there was a dependence on change to get a turnaround in their income.

Welcoming the change and strategies of how it should be executed.

Encouraged active participation in the look and execution of the change.

Creating communication system whereby contributions were got from employees, irrespective of level and employee buy-in established.

IMPORTANCE OF LEARNING IN ORGANIZATIONS

Learning is a relatively permanent change in behaviour due to observation and experience (Ejiogu, 2000). It is a way where knowledge, skill and values are acquired. It really is an important part of employee development. It can be used to learn new skills or mastery of old ones; it is reinforced when there is certainly reoccurrence. Virtually all behaviours are learnt. Knowledge and creativity are major differentiating factors for organizations.

The learning process can be affected by learning assists, instructor, personal features (like temperaments and IQ level) and learning conditions. In organizations, it can be executed insurance agencies a slated out-of-office training (theoretical) or on-the-job training (sensible and enhances experience).

Employees get involved in the actions of the business through learning, to be able to accomplish organizational goals and objectives. Organizations should strive for their workers to learn, not just to be trained.

Learning helps to perfect any pre-conceived negative/false notions a worker may have about the organization. It enhances imagination and assists the employee fit into the organizational culture.

EFFECTIVENESS OF TEAM WORKING AND ORGANIZATIONAL DECISIONS

Teams are a formal group of folks created for a specific project in a organization. They differ from groups, which really is a collection of people that talk about the same characteristics, e. g. , a name, however, not automatically the same purpose or mission. Groups have clear structures (there's always a leader), an objective and guiding concepts, are result-oriented and are bound by deadlines. In taking decisions, clubs have the ability to share ideas, encounters and individual advantages, such as a synergy. They may be adaptable, but have clear responsibilities and goals.

Dumaine (1994, cited in Dransfield) named 5 types of teams:

Management teams

Problem fixing teams

Work teams

Quality circles

Virtual teams

In every circumstance, team members have to be selected on the basis of qualification and must be committed to the cause and also have a pastime in the topic matter. Every team member will need to have a role to play in the team. Associates also have to establish the most effective form of communication for each member and set up frequent meetings where their mission is measured against their accomplishments.

Once a team is set up, they identify the challenge they are designed to solve and the key performance indicators to do this. Then they accumulate and evaluate data from various resources, both interior and external to the organization and take action based on the info. They implement the perfect solution is and measure the outcome against the original expectation.

The team that developed Fanta Pineapple is a Problem-Solving team. It was constituted to create a new brand that will impact on NBC's sales positively. They had a life expectancy of 9 weeks to do this, and the team was disbanded. The team was a 10-member team, made up of associates from 10 departments of NBC (see appendix) and each of them contributing their own prosperity of experience into the progression of the new product. The new product eventually hit the market in July of 2011 and having just eliminated past it teething and approval phase is starting to effect on total sales level of NBC.

As a market head and a high-performing firm, NBC needs to regularly make and take proper decisions, effectively interpret them into activities and execute them before competition do, whilst devoting the right amount of resources and effort to the procedure.

HOW ORGANIZATIONS FACILITATE Creativity AND CREATIVITY

To facilitate technology and creativeness generally, the management of NBC must give room for self applied development of employees. We will remember that part of NBC's culture is to foster employee development, training and learning. Regarding this project, a fresh line needed to be created in the production department and so the staffs that were to handle this new series needed to be trained how to operate there, they were trained new "recipe combine" to reach at the desired taste. A few of these trainings need to be repeated so that learning can occur and it becomes part of the employee. The procedure even entailed some employees going to Germany and USA for specific trainings.

Team members stimulated each other with their individual contributions and idea writing. Innovations for the merchandise was thrown available to the entire employees by which they received some very relevant ideas. Associates are like casual networks within the organization and get back information with their departments.

The customers of the Fanta Pineapple team were duly rewarded with add-ons, allowances and other incentives during the lifetime of the task.

TASK 7

This research was conducted as an action research the techniques used for gathering information are:

Face to handle interview: with the company's representative on press and publicity. The hindrance to this method was that the consultant was being mindful on divulging some vital information on this project that would have been instrumental to your work, for fear of certain information filtering to their major challengers, PEPSI, who may make an effort to put it to use against NBC.

Data evaluation was from company account, past financial reviews, feasibility study article and other companies that profiled NBC. NBC's website itself does not have sufficient information as it should. Again, this is because of concern with competition getting undue benefit through such means.

The Leadership Theory applied in NBC is a blend of Participative leadership and Transformational command. The participative command is what makes NBC to entail the entire labor force whenever you can in decision making. Additionally it is mirrored in the Democratic managerial style. The transformational authority is exactly what motivates the labor force towards achievements, because the leaders are visionary, have love for the business, inspire the workforce by example and inject the right amount of eagerness.

When in comparison to GUINESS NIG, the primary brewers of Stout in Africa, we see they have the same kind of leadership and managerial ideas as NBC. We are able to then say these styles are far better for his or her industry.

Both NBC and GUINESS concern themselves with the essential needs of their employees as the Nigerian Federal government, as a growing land, is yet to provide basic infrastructures for her individuals. Job security, a chance to put food on their tables, clothes on the backs, a rooftop over their minds and gain communal acceptance are part of the desire that keep employees of the organizations working. Theoretically, this is related to Maslow's hierarchy of needs Motivation Theory.

The company culture prevalent in NBC is the Collaborative Culture. This culture demonstrates their values, which can be commitment, teamwork, accountability, people, quality and integrity. It clarifies why they value their staff so much- employees as resources, they state. The culture is also customer-driven and upholds an frame of mind of excellence, which is why they remain the leading carbonated drinks company in the whole of Africa. NBC excellence culture means that tools are always in good working order and the task environment is healthy and safe. In addition, it ensures the get reviews on their products and services from the various stakeholders. Again, GUINNESS shares similar cultures with NBC.

CONCLUSION

in this review, we said organizational behavior is the study of the behaviour of individuals in relations with a group or team and this it attracts from other disciplines like psychology, philosophy and sociology using Nigerian Bottling Company as a research study. We viewed the methods to decision making, that are rational, behavioural, useful, personal, prescriptive & descriptive and normative techniques.

We briefly examined leadership theories and defined them as trait, participative, behavioural, great-man, contingency, transactional management, transformational command and situational command theories. We also observed that managerial styles include autocratic, democratic, laissez faire and paternalistic styles. We searched various theories wanting to understand what motivates employees. The theories are Hierarchy of need, Analysis of energy and movement, theory X and Y, Hawthorne result and both factor theory. Then we analyzed some expectations relating to work relationships and exactly how people employed in a team or group should interact with one another.

We researched characteristics of varied organizational structures, including the u-form composition, m-form composition, h-form composition and the matrix composition. We observed some factors that help define the culture of an organization, like the folks, values, processes, their words and the style of authority. We then related this to how it makes an organization able to handle changes, be it organized or unplanned changes. This led us to study the importance of learning in organizations and communities and the great things about working in teams.

These studies were covered about the development of a fresh brand for NBC, Fanta Pineapple and the way the job team achieved this feat.

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