Professional Documents
Culture Documents
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COURSE OUTLINE
4 Hours Lectures + 3 Hours Lab./Tutorial per
Week
1) Management
2) Engineering as Business
3) Planning
4) Organizing & Coordination
5) Staffing
6) Leading
7) Marketing
8) Monitoring & Controlling Operations
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PLANNING
Definition;
Objectives;
Feasibility studies;
Time scheduling, critical path analysis;
Introduction to management
accounting, project evaluation using
discounted cash-flow, risk analysis
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THE MANAGEMENT TASK
The role of managers is:
to guide organizations toward goal
accomplishment.
to combine and use organizational resources
to ensure that the organizations achieve
their purpose.
to assign activities that organization
members perform.
to encourage individual activity that will lead
to reaching organizational goals.
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MANAGEMENT FUNCTIONS
Four basic management functions that make up the
management process are:
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The illuminated terminal of the Willy Brandt Airport in October 2012.
Managers were reportedly spending $6,000 per day on electricity because they
were unable to turn off the lights at the facility.
Berlin's new airport was supposed to open in October 2011 but delay after
delay and thousands of technical problems have made it a national joke.
It was supposed to have opened in late 2011 but now isn't expected to open
until at least 2014 -- the cost having doubled to nearly $6 billion.
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Germans are world-famous for their efficiency, a stereotype both
mocked and admired by their European neighbors.
But this hard-won reputation is now under threat after a catalog of
calamities affecting major construction projects.
Perhaps worst of all is what should already be the main airport for
the capital, Berlin, which has been dubbed the “eternal” construction
site by the U.K.-based Economist magazine and a “fiasco” by French
newspaper Le Figaro.
Udo Steffens, president of the Frankfurt School of Finance and
Management, noted sadly that the international press had been
asking, “What is it about Germany, this very efficient and effective
economic power, are they not able to build a simple airport?“
It was supposed to open in October 2011 but is now not expected to
be finished until 2014 at the earliest.
Some staff who were hired for the opening have already been laid
off.
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They went back to the planning table, but after much
discussion came back with a final design that was more
expensive and much the same, according to a planning expert.
Germans are starting to worry they are becoming something of
a laughingstock, with the airport’s woes the chief
embarrassment.
"The entire republic, if not the entire world, is joking about the
Berlin airport delay," said Ramona Pop, a Green Party leader in
Berlin.
The head of Brandt’s foundation has complained that the great
man’s name “shouldn't be associated with the planning errors.”
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MANAGEMENT AND ORGANIZATIONAL RESOURCES
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MANAGEMENT SKILLS
The three types of skills that are important for successful
management performance are:
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POTENTIAL DISADVANTAGES OF PLANNING
If the planning function is not well executed within the
organization, planning can have several disadvantages.
An overemphasized planning program can take up
too much managerial time.
Managers must strike an appropriate balance
between time spent on planning and time spent on
organizing, influencing (or leading), and controlling;
otherwise some activities that are extremely
important to the success of the organization may be
neglected.
Usually, the disadvantages of planning result from
the planning function not being carried out
correctly.
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STEPS IN THE PLANNING PROCESS
The planning process contain the following steps:
1. Stating organizational objectives.
2. Listing alternative ways of reaching objectives.
3. Developing premises on which to base each
alternative.
4. Choosing the best alternative for reaching objectives.
5. Developing plans to pursue the chosen alternative.
6. Putting plans into action.
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PLANNING AND THE CEO
CEOs have many roles:
They represent their organizations in a variety of social,
legal, and ceremonial matters.
They must ensure that their members are properly
guided in relation to organizational goals.
As liaisons, they must establish themselves as links
between their organizations and factors outside their
organizations.
As monitors, they must assess organizational progress;
As disturbance handlers, they must settle disputes
between organizational members.
They must also determine how best to allocate
resources as well as bear the responsibility for
organizational planning.
Thus CEOs are deeply involved in the planning process.
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PLANNING AND THE CHIEF EXECUTIVE
As planners, CEOs seek to answer the following
broad questions:
1. In what direction should the organization be
going?
2. In what direction is the organization going
presently?
3. Should something be done to change the
direction?
4. Is the organization continuing in an appropriate
direction?
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OBJECTIVES, STRATEGY AND ACTION
How far
The forecast Corporate Where do we
ahead
objectives Want to be?
must we Future
look?
Actions
plans
Strategy
Where The formulation How should
are we Present we reach our
now? objectives?
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STRATEGIC PLANNING
For managers to be successful strategic
planners, they must understand the
fundamentals of strategic planning and how to
formulate strategic plans.
Strategic planning is long-range planning that
focuses on the organization as a whole.
Managers consider the organization as a total
unit and ask themselves what must be done in
the long term to attain organizational goals.
Hence in strategic planning, managers try to
determine what their organization should do to
be successful at some point 3 to 5 years in the
future.
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STRATEGY MANAGEMENT
Strategy Management is defined as a broad and general
plan developed to reach long-term objectives.
Organizational strategy management can, and generally
does, focus on many different organizational areas, such
as marketing, finance, production, R&D, personnel and
public relations.
Actually strategy management is the end result of
strategic planning.
Strategy management is the process of ensuring that an
organization possesses and benefits from the use of an
appropriate organizational strategy.
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STRATEGY MANAGEMENT
Strategy management process is generally thought to
consist of five sequential and continuing steps:
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ENVIRONMENTAL ANALYSIS
Environment analysis helps managers to understand
what is happening both inside and outside their
organization and to increase the probability that the
organizational strategies they develop will
appropriately reflect the organizational environment.
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ENVIRONMENTAL ANALYSIS
General Environment
economic
Operating Environment
social
Internal Envi.
Intern.
Planning legal
Organizing Comp.
Influencing
Controlling
political
Labour
Customer
technology
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ENVIRONMENTAL ANALYSIS-GENERAL
The General Environment: This is the level of an
organization's external environment that contains
components normally having broad long term
implications for managing the organization;
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ENVIRONMENTAL ANALYSIS-OPERATIVE
Operating Environment: is the level of the
organization's external environment that contains
components normally having relatively specific and
more immediate implications for managing the
organization.
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ENVIRONMENTAL ANALYSIS -INTERNAL
The Internal Environment; The level of an organization's
environment that exists inside the organization and
normally has immediate and specific implications for
managing the organization.
In broad-terms the internal environment includes
marketing, finance, and accounting.
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ESTABLISHING ORGANIZATIONAL DIRECTION
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DETERMINE ORGANIZATION MISSION
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ORGANIZATION OBJECTIVES
Organizational objectives are the targets toward which
the open management system is directed.
Organizational input, process, and output, all exist to
reach organizational objectives.
Properly developed organizational objectives reflect the
purpose of the organization; that is, they flow naturally
from the organizational purpose.
The organizational purpose is what the organizational
exists to do, given a particular group of customers and
customer needs.
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STRATEGY FORMULATION
After managers involved in the strategic management
process have analyzed the environment and determined
organizational direction through the development of a
mission statement and organizational objectives, they
are ready to formulate strategy.
Strategy formulation is the process of determining
appropriate courses of action for achieving
organizational objectives and thereby accomplishing
organizational purpose.
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STRATEGY FORMULATION
Managers formulate strategies that reflect environmental
analysis, lead to the fulfillment of mission, and result in the
reaching of organizational objectives.
Special tools that managers can use for assistance in
formulating strategies include :
1) Critical question analysis,
2) SWOT analysis,
3) Business portfolio analysis, and
4) Porter’s Model for Industry Analysis.
The four strategy development tools are related but distinct.
Managers should use which one tool or combination of tools
seems most appropriate for them and their organizations.
We only look at the first two tools.
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1. CRITICAL QUESTION ANALYSIS-FOUR BASIC
QUESTIONS:
1. What are the purposes and objectives of the
organization?
The answer to the question states where the
organization wants to go.
2. Where is the organization presently going?
The answer to this question can tell managers
where the organization is actually going. If an
organization is achieving organizational goals, and
if so whether the level of such progress is
satisfactory.
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1. CRITICAL QUESTION ANALYSIS-FOUR BASIC
QUESTIONS:
3. In what kind of environment does the organization
now exist?
Both internal and external environments. For
example, assume that a poorly trained middle-
management team and a sudden influx of
competitors in a market are factors that exist
respectively in the internal and external
environments of an organization. Any strategy
formulated, if it is to be appropriate, should deal
with these factors.
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1. CRITICAL QUESTION ANALYSIS-FOUR BASIC
QUESTIONS:
4. What can be done to better achieve organizational
objectives in the future?
The answer to this question actually results in the
strategy of the organization. The question should
be answered, however, only after managers have
had adequate opportunity to reflect on the
answers to the previous three questions.
Managers can develop appropriate organizational
strategy only if they have a clear understanding of
where the organization wants to go, where the
organization is going, and in what environment
the organization exists.
2. SWOT ANALYSIS
SWOT analysis is a strategic planning tool that
matches internal organizational strengths and
weaknesses with external opportunities and
threats.
SWOT is an acronym for a firm's Strengths and
Weaknesses and its environmental Opportunities
and Threats.
SWOT analysis is based on the assumption that if
managers carefully review such strengths,
weaknesses, opportunities, and threats, a useful
strategy for ensuring organizational success
become evident.
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IMPORTANT CONSIDERATIONS FOR SWOT ANALYSIS
STRENGTH WEAKNESSES OPPORTUNITIES THREATS
A distinctive No clear strategic Enter new marks or Likely entry of new
Competence direction segments competitors
Adequate Financial A deteriorating Diversify into Rinsing sales of
Resources competitive position related products substitute products
Good competitive Obsolete facilities Add complementary Slower market
skills products growth
Quality of Lack of quality Able to move to Adverse government
product/services product/service better strategic policies
group
Access to economies Missing key skills or Faster market Growing
of scale competencies growth competitive
pressures
Proprietary Poor record tracking Complacency among Vulnerability to
technology in implementing rival firms business cycles
strategy
Cost advantage Falling behind in Changing buyer
R&D needs and tastes
Product innovation Weak market image Adverse
abilities demographic 40
STRATEGY IMPLEMENTATION
Strategy implementation, the fourth step of the strategy
management process, is putting formulated strategies into
action.
Without success in strategy implementation, valuable and
worthwhile strategies that managers have developed are
virtually worthless.
The successful implementation of strategy requires four basic
skills:
1. Interacting skill is the ability to manage people during
implementation.
2. Allocating skill is the ability to provide organizational resources
necessary to implement a strategy.
3. Monitoring skill is the ability to use information to determine
whether a problem has arisen that is blocking implementation.
4. Organizing skill is the ability to create throughout organization
a network of people who can help to solve implementation
problems when they occur. 41
STRATEGIC CONTROL
Strategic control, the last step in the strategy-
management process, is monitoring and
evaluating the strategy-management process as
whole in order to make sure it is operating
properly.
Strategic control focuses on the activities involved
in environmental analysis, organizational
direction, strategy formulation, strategy
implementation, and strategic control itself –
ensuring that all the steps of the strategy-
management process are appropriate,
compatible, and functioning properly.
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TACTICAL PLANNING
Tactical planning is short-range planning that
emphasizes the current operations of various parts of
the organization.
Short-range is defined as a period of time extending
only about one year or less into the future.
Managers use tactical planning to outline what the
various parts of the organization must do for the
organization to be successful at some point one year
or less into the future.
Tactical plans are usually developed for organizations
in the areas of production, marketing, personnel,
finance, and plant facilities.
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COMPARING AND COORDINATING STRATEGIC AND
TACTICAL PLANNING
In striving to implement successful planning systems
within organizations, mangers must remember several
basic differences between strategic planning and tactical
planning.
1st, because upper-level managers generally have a
better understanding of the organization as whole
than do lower-level managers, and that lower-level
managers generally have a better understanding of
the day to day organizational operations than do
upper-level managers, strategic plans usually are
developed by upper-level management and tactical
plans by lower-level management.
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COMPARING AND COORDINATING STRATEGIC AND
TACTICAL PLANNING
2nd, because strategic planning emphasizes analyzing
the future and tactical planning emphasizes analyzing the
everyday functioning of the organization, facts on which
to base strategic plans are usually more difficult to
gather than are facts on which to base tactical plans.
3rd difference between strategic and tactical planning
involves the amount of detail in the final plans.
4th, Because strategic plans are based primarily on a
prediction of the future and tactical plans on known
circumstances that exist within the organization,
strategic plans generally are less detailed than tactical
plans. Lastly, strategic plans focuses on long term as
opposed to tactical plans which cover short term.
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THE DIFFERENCES BETWEEN STRATEGIC AND
TACTICAL PLANNING
AREA OF STRATEGIC TACTICAL PLANNING
DIFFERENCE PLANNING
1. Individuals Developed mainly Developed mainly by
involved by upper-level lower-level
management management
2. Facts on which to Facts are relatively Facts are not difficult
base Planning difficult to gather to gather
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EVALUATION OF PLANNERS
Since an evaluation can be subjective, some indicators of
objectivity may be that:
1. The planner has the organizational plan in writing
2. The plan is the result of all elements of the management
team working together
3. The plan defines present and possible future business of the
organization
4. The plan specifically mentions organizational objectives
5. The plan includes future opportunities and suggestions on
how to take advantage of them
6. The plan emphasis both internal and external environments
7. The plan describes the attainment of objectives in
operational terms when possible
8. The plan includes both long- and short-term
recommendations
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MAXIMIZING THE EFFECTIVENESS OF THE
PLANNING PROCESS
As the size of the organization increases, the planning
task becomes more complicated, requiring more people,
more information and more complicated decisions.
Several safeguards, however, can ensure the success of
an organizational planning effort.
These safeguards include
1) top management support,
2) an effective and an efficient planning organization,
3) an implementation-focused planning orientation, and
4) inclusion of the right people.
MAXIMIZING THE EFFECTIVENESS OF THE
PLANNING PROCESS
Top management in an organization must support the
planning effort, or other organization members may not take
the planning effort seriously.
Whenever possible, top management should actively help to
guide and participate in planning activities.
Furnishing the planner with whatever resources needed to:
structure the planning organization,
encouraging planning as a continuing process, and
preparing people for the changes that usually result
from planning
are clear signs that top management is solidly behind the
planning effort.
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MAXIMIZING THE EFFECTIVENESS OF THE
PLANNING PROCESS
Inclusion of the right people means that planners should
obtain input from the managers of the functional areas for
which they are planning.
These managers are close to the everyday activity of their
segments of the organization and can provide planners with
invaluable information.
They probably also will be involved in implementing
whatever plan develops and will be able to furnish the
planner with feedback on how easily various plans are being
implemented.
Input from individuals who will be directly affected by the
plans also can be helpful to planners.
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MAXIMIZING THE EFFECTIVENESS OF THE
PLANNING PROCESS
The individuals who do the work in the organization can
give opinions on how various plans will influence work
flow.
Since planning requires not only generation of
information for making decisions, but decision making
itself.
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IMPORTANCE OF ORGANIZATIONAL
OBJECTIVES
Organizational objectives give managers and all other
organization members guidelines for action in such areas
as:
decision making,
organizational efficiency,
organizational consistency, and
performance evaluation.
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GUIDE FOR DECISION MAKING
A significant portion of managerial responsibilities
involves making decisions that inevitably influence the
everyday operation and existence of the organization.
Once managers have a clear understanding of the
organizational objectives, they know the direction in
which the organization must move.
It then becomes their responsibility to make decisions
that move the organization toward the achievement of
its objectives.
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GUIDE FOR ORGANIZATIONAL EFFICIENCY
Since inefficiency results in a costly waste of human
effort and resources, managers strive to increase
organizational efficiency whenever possible.
Efficiency is defined in terms of the total amount of
human effort and resources that an organization uses to
achieve organizational aims.
Therefore, before organizational efficiency can improve,
managers must have a clear understanding of
organizational goals.
Only then are they able to use the limited resources at
their disposal as efficiently as possible.
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GUIDE FOR ORGANIZATIONAL
CONSISTENCY
Organizational members often need work-related
directives.
If organizational objectives are to be used as the basis
for these directives, the objectives serve as a guide to
consistent encouragement of such things as:
productive activity,
quality decision-making and
effective planning.
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GUIDE FOR PERFORMANCE EVALUATION
Periodically, performance of all organization members is
evaluated to assess individual productivity and to
determine what might be done to increase it.
Organizational goals are guidelines or criteria that should
be used as the basis for these evaluations.
The individuals who contribute most to the attainment of
organizational goals should be considered the most
productive.
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TYPES OF OBJECTIVES IN ORGANIZATIONS
Objectives can be separated into two categories:
Organizational and
Individual.
1. Organizational Objectives
The most common organizational objectives relate
to profitability, growth, and market share.
Social responsibility and employee welfare
objectives are also common and probably reflect a
change in managerial attitude over a period of
years.
Still important but less common, is objectives that
relate to efficiency, research and development.
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TYPES OF OBJECTIVES IN ORGANIZATIONS
2. Individual Objectives
Individual objectives, which also exist within
organizations, are the personal goals each
organization member would like to reach through
activity within the organization.
These objectives might include
high salary,
personal growth and development,
peer recognition, and
societal recognition.
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AREAS FOR ORGANIZATIONAL OBJECTIVES
In practice managers should strife to develop and attain a
variety of objectives in all management system areas where
activity is critical to the operation and success of the system.
The following eight points advises managers to set
management system objectives:
Market standing: Management should set objectives
indicating where it would like to be in relation to its
competitors.
Innovation: Management should set objectives outlining its
commitment to the development of new methods of
operation.
Productivity: Management should set objectives outlining the
target levels of production.
Physical and financial resources: Management should set
objectives with regard to the use, acquisition, and
maintenance of capital and monetary resources. 63
AREAS FOR ORGANIZATIONAL OBJECTIVES
FEEDBACK
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(If you get a meeting with Don Corleone, don't be late.) 67
ASSIGNMENT (1)-AGRICULTURE
ENGINEERING
1. Draw the Organization structure of the University of
Zambia(UNZA)?
2. State the Mission Statement and Organizational Objectives
of UNZA.
3. Draw the Organization structure of Zambia Sugar
Company?
4. State the Mission Statement and Organizational Objectives
of the Zambia Sugar Company Limited.
5. Draw the Organization structure of Lusaka Water and
Sewerage Company?
6. State the Mission Statement and Organizational Objectives
of the Lusaka Water and Sewerage Company?
ASSIGNMENT (1) - CIVIL ENGINEERING DEPT.
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ASSIGNMENT (1)-MECHANICAL
ENGINEERING
1. Draw the Organization structure of the University of
Zambia(UNZA)?
2. State the Mission Statement and Organizational
Objectives of UNZA.
3. Draw the Organization structure of LAFARGE Cement
Company?
4. State the Mission Statement and Organizational
Objectives of LAFARGE Cement Company.
5. Draw the Organization structure of INDENI Company.
6. State the Mission Statement and Organizational
Objectives of INDENI Company.
ASSIGNMENT ONE-SURVEY ENGINEERING
1. Draw the Organization structure of the University of
Zambia(UNZA)?
2. State the Mission Statement and Organizational
Objectives of UNZA.
3. Draw the Organization structure of LUMWANA Mine?
4. State the Mission Statement and Organizational
Objectives of LUMWANA Mine.
5. Draw the Organization structure of ZULU-BARROW
Company.
6. State the Mission Statement and Organizational
Objectives of ZULU-BARROW Company.
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The 2011 earthquake off the Pacific coast of Tōhoku ( 東北地方
太平洋沖地震 Tōhoku-chihō Taiheiyō Oki Jishin?), often referred
to in Japan asHigashi nihon daishinsai ( 東日本大震災 ?) and also
known as the 2011 Tohoku earthquake, the Great East Japan
Earthquake, and the 3.11 Earthquake, was a magnitude 9.0
(Mw) undersea megathrust earthquake off the coast of Japan that
occurred at 14:46 JST on 11 March 2011, with
the epicentre approximately 70 km east of the Oshika
Peninsula of Tōhoku and the hypocenter at an underwater depth
of approximately 30 km. It was the most powerful
known earthquake ever to have hit Japan, and the fifth most
powerful earthquake in the world since modern record-keeping
began in 1900. The earthquake triggered powerful tsunami waves
that reached heights of up to 40.5 meters in Miyako in
Tōhoku's Iwate Prefecture, and which, in the Sendai area,
travelled up to 10 km inland. The earthquake moved Honshu (the
main island of Japan) 2.4 m east and shifted the Earth on its axis
by estimates of between 10 cm and 25 cm. 74
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Total devastation in Moore, Oklahoma
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What happened to the sunny day?
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Picture of the damage at the Moore Medical Center
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Another picture from inside the wall downtown
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What remains of friend's business on S. 19th and Santa Fe
in Moore 100