CLIMATE CHANGE AN OUTCOME OF ANTHROPOGENIC FACTORS Essay

CLIMATE CHANGE AN OUTCOME OF ANTHROPOGENIC FACTORS - Essay Example The Intergovernmental panel on climate change at the Kyoto protocol determined in 2007 that â€Å"most of the observed increase in global average temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic greenhouse gas concentrations† [2]. Furthermore, based on the assumption that significant anthropogenic warming has taken place over the past 50 years over each continent except Antartica, it has been concluded that anthropogenic climate change is having a significant impact on physical and bilogical systems globally [3]. Climate change is occuring on all continents and in most oceans. Changes in the natural system since 1970 have been occuring where temperature increase has taken place. These changes cannot be explained by natural climate variations alone. This implies that climate change is primarily attributable to anthropogenic factors. The Intergovernmental Panel on Climate Change (IPCC) conclude that the earth is warming and tha t humans are probably the cause. Technologies to decrease greenhouse gas emissions and strategies for carbon sequestraion have been found to be essential as species extinction has been found to be related to climate warming [4].

Strategic HRM Essay Example | Topics and Well Written Essays - 2500 words - 2

Strategic HRM - Essay Example The third principle reflects that a systematic approach should be developed by an organization in terms of human resource management for defining the objectives of the organization and the plans as to how these objectives can be attained. This report is prepared with the aim of identifying the core strategic issues in one of the fastest growing and largest companies operating in the Electronics Manufacturing Services (EMS) industry, Foxconn Technology Group. The core strategic issues in the company which have acted as impediments in the way of successful management of the company are identified and evaluated with the use of established strategic HRM theories and concepts. The report also includes the identification of suitable solutions for the existing strategic problems in the company which are presented as recommendations to the management. The report is concluded with a summary of the overall case study analysis. Strategic HRM is a process which includes the formulation of suitable approaches for developing human resource strategies in an organization (Smit and Trigeorgis, 2004). The development of strategic human resource systems and processes is important for every organization because strategic HRM is considered to be a major source of generating competitive advantage. Also, the human resource strategies can be vertically integrated with the business and corporate strategies and horizontally integrated among the different groups of strategic HRM strategies. These strategies are aimed at defining the plans of the organization with respect to the specific business considerations like people management, organizational effectiveness, employee relations management, reward and appraisal systems, learning and development, resource management etc. (CCH Australia, 2011). Foxconn Technology Group is a leading

Lufthansa airlines bankruptcy to profitable airline

Lufthansa airlines bankruptcy to profitable airline This report will take a closer look at the turnaround of Lufthansa airlines which went from near bankruptcy in 1991 to a now profitable airline. The evolutionary patterns of strategy and structure are identified in this report as well as how strategic leadership and German culture contributed to the turnaround. Furthermore, this paper will analyse the airline industry in terms of Porters five forces and will also take an extensive look at Lufthansas current situation by means of a SWOT and TOWS analysis. Additionally, Lufthansas business-level and corporate-level strategy will be identified and the Star Alliance, the worlds most important airline alliance, will be discussed in detail. 2.0   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Company Background The Lufthansa Aviation Group is considered to be one of the worlds leading air transport corporations. It includes a number of independent group and affiliated companies with business segments in passenger airlines, logistics, aircraft maintenance, catering, tourism and IT services. Lufthansas headquarter is located in Cologne, Germany and its operational centre for passenger and cargo services is situated in Frankfurt (Key data on environmental care and sustainability at Lufthansa 2002/2003). Lufthansa is 78 years old and has currently about 93,000 employees worldwide and in 2003-reported revenue of about 16 billion Euros (Lufthansa Key Figures 2003- see also Appendix I). In terms of traffic performance, Lufthansa is in third position in worldwide passenger transport. For many years the company has also been the market leader in international cargo traffic. In 2002, Lufthansas 368 aircrafts operated on routes to 327 destinations, carrying 50.9 million passengers and 1.63 million tons of airfreight. Lufthansa was also one of the founding members of the Star Alliance in 1997, when 16 partners joined into the worlds largest airline alliance (Key data on environmental care and sustainability at Lufthansa 2002/2003). 3.0 The Industry Background The organization also has to deal with cyclical risks. General economic fluctuations as well as geopolitical developments can have a large impact on the performance of the Lufthansa Group. As good examples serve the events of September 11, the Iraq conflict and the outbreak of SARS in Asia along with a stagnating global economy which seriously influenced the business activity of the entire airline industry in a negative way (Heerkens 2003). Lufthansa is also confronted with some capital market risks as its international business activities expose it to exchange rate and interest rate fluctuations in the international money, capital and also the foreign exchange markets (Zea 2003). A substantial threat is the price of fuel since fuel consumption remains one of the main cost items for the whole airline industry. In 2003, it contributed 7.6% to Lufthansas total operating expenses. Fluctuations in fuel prices can have a significant affect on the organizations operating result (Lufthansa Annual Report 2003). Furthermore there is the threat of higher costs of insuring Lufthansas fleet. Insurance costs increased dramatically after the events of September 11 and since then stayed at a very high level. The reason for that are the massive additional premiums that are being charged for insuring against war and similar events. In case of more wars and terrorist attacks the premiums are likely to increase even further (Zea 2003). There are also a number of infrastructure risks that Lufthansa will have to deal with. There are plans for an extension of the runway system at Frankfurt Airport, which is a major hub for Lufthansas operations, and is extremely important for the long-term competitiveness of the German airline. The extension project is also crucial for securing Frankfurt Airports future as an international air traffic hub, which also applies to the building of the maintenance hangar for the new Airbus A380 super jumbo that will be used from 2007 onwards. Nonetheless, a range of operational restrictions on extending the airport has recently been debated which would hinder its efficient use. In case a solution cant be found, Lufthansa would have relocate part of their business to alternative hubs. Additionally, bottlenecks in many European air traffic control systems cause many flight delays. The infrastructural limitations are a huge burden on the profitability of all European air carriers. On top of t hat, they are inhibiting the industry to keep up with the growing demand for air transport services (Lufthansa Annual Report 2003). There are also a few risks relating to the development of alliances. One of the foundations for Lufthansas commercial success was its integration into the Star Alliance, the worlds leading airline partnership system. Currently, many of the airlines worldwide are in a loss-making situation which, in the case of a few of Lufthansas partners like United Airlines and Air Canada, reached proportions that threatened their existence and also affects Lufthansa negatively. In regards to the Star Alliance, there are also challenges of coordinating and incorporating strategic activities like the establishment of a common global brand, a shared technology platform as well as joint training and personnel development (Lufthansa Annual Report 2003). Being part of the Star Alliance also poses the threat that Lufthansa might lose its identity. It is vital for them to preserve the Lufthansa brand (Bruch Ghoshal 2002). Labour unions are an additional threat; especially in Germany they have a lot of power. Labour unions can initiate strikes, which in the past have already led to delays of departures and substantial costs to Lufthansa (Steinborn 2003).   4.0 The Company Objectives Structural analysis of an industry is a useful way of determining a companys long-term profitability. Comprehending the dynamics of the competitive forces in an industry can give an insight whether an industry is attractive and whether there are any chances for returns on capital. Michael Porter, a professor at Harvard Business School, created a framework for understanding the structure of an industry. According to Porter, the five competitive forces that can have an impact on an industry are threat of new entrants, bargaining power of suppliers, bargaining powers of buyers, competitive rivalry, as well as the threat of substitutes (Analysis of industries 2003). 4.1   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Threat of new entrants The threat of new entrants offers the possibility that new firms are going to enter the industry, which will consequently lead to a reduction of industry returns by generally passing more value to consumers in terms of lower prices and also increasing the cost of competition. Factors like economies of scale, capital requirements, product differentiation, access to distribution channels, switching costs as well as brand value determine the threat of entry (Analysis of industries 2003). From my point of view it currently seems very difficult to enter the airline industry as this area of business as well as the world economy is facing a period of recession. Due to large product differentiation the entry barriers are fairly high. There is a range of flag carriers, charter airlines as well as a number of low-fare airlines in the industry. All these different types of airlines offer an extensive range of products that seem to satisfy most customers needs. Additionally, entering the aviation industry requires very high capital investments because aircrafts, technical support and IT services need to be purchased or leased. This industry is also very labour and fuel intensive which requires a lot of funds. Companies with an interest in entering the market also require access to distribution channels. This means that it is necessary to gain trust within the industry so as to get access to take-off and landing spots. This can be quite challenging as national policies still p lay a major role in the aviation industry. Furthermore it is a requirement to obtain permission from governments to enter airspace. Moreover once the market is entered, it is very difficult to exit which raises switching costs to a high level. Throughout the last decade the market opened due to the deregulation policy, which provided low budget airlines with an opportunity to enter the industry. The first entrants like Ryanair and Easyjet utilized this opportunity and developed strong brand names due to their first-mover advantage. Airlines that recently entered the market that have a similar price and cost structure generally find it more difficult to generate the traffic that is required to fill the seats in their aircrafts (Jacob Jakesova 2003). All in all it can be said that the threat of new entrants is not that high in the airline industry in the current business environment. 4.2   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Bargaining power of suppliers Factors that are connected with the bargaining power of suppliers include the threat of forward integration as well as the concentration of suppliers in the industry. Supplier power decreases the ability for competitors in the industry to earn higher profits (Wheelen Hunger 2000, p. 64). The main suppliers within the airline industry are the manufacturers of aircrafts like Airbus and Boeing, fuel suppliers such as Shell, British Petroleum and Chevron Texaco. Furthermore there are technical support and IT services as well as the catering services. Suppliers are very concentrated in the airline industry as Boeing and Airbus supply most commercial fixed-wing aircrafts. The concentration of suppliers makes it difficult for the airlines to exercise leverage over the two manufacturers and negotiate lower prices or play one supplier against the other. Moreover, at the current stage, aircrafts for long distance travel cannot be substituted by any other product, which strengthens the bargaining power of the suppliers even more. Fuel providers have an excellent bargaining position as they can increase fuel prices without regarding the airlines as an important customer group. Forward integration, which is the expansion of a business products or services to related areas in orde r to directly satisfy the customer needs, is fairly low. The reason for this is that it can be assumed that neither aircraft manufactures, fuel providers nor technical support companies will purchase an airline and staff it with flight attendants, commercial pilots, a maintenance crew and operate flights across the world (Jacob Jaksova 2003). Nevertheless, the strong position fuel suppliers as well as the relatively strong position of manufacturers of aircrafts need to be taken into account when operating an airline. 4.3   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Bargaining power of buyers Buyers can have significant power, as they are able to push down prices, and negotiate for better quality and service. Buyer power is determined by relative volume of purchase, switching cost, standardization of the product, brand identity, elasticity of demand as well as quality of service (Del Vecchio 2000). Since customers are not very concentrated and generally dont purchase plane tickets in large volumes they do not have a strong bargaining position. A single purchase of an airline ticket does not represent a significant fraction of the amount offered. Switching costs are quite low as consumers have a range of choices when selecting an airline. Due to the Internet, information about prices is also less fragmented and much easier to compare. Quite frequently, a customer can find price differences for the same flight and one seat is generally not any better, since everyone arrives at the destination at the same time. Considering the worldwide recession as well as the psychological effects of September 11, airline companies are under substantial pressure as customers switch to alternative transportation like trains. Vacation travelers also tend to shop around for the best price. Traveling by plane is quite expensive and can make up the largest part of the expense of a family vacation. For that reason, demand is quite elastic for some buyers. As soon as the price drops, the demand increases. However, airlines can move their prices in tandem with other airlines, which forces customers to purchase tickets for the market price until a price war starts (Analysis of Industries 2003). Nevertheless, all in all it can be said that the bargaining power of buyers is relatively low. 4.4   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Threat of substitute products The airline industry is threatened by a number of substitutes. This threat is quite substantial within Europe, where Lufthansas main customer base is located. Many European countries have an excellent railway system with high-speed trains like the ICE in Germany and the TGV in France. These trains can travel up to 300km/h fast and can cover large distances within the countries in just a few hours. Trains can be considered the largest threat as they offer a variety of advantages over flying. From my point of view it seems that flying is much faster, but on a domestic flight in a European country there is not much of a difference in comparison to trains. The reason for that is that it always takes a while to get to the airport, as they are mostly located further away from cities; check-in and security checks usually require being there at least an hour before take-off. After the plane has landed, it usually takes at least another 30 minutes to get out of the plane, claim the baggage an d organise transportation to leave the airport. Railway stations on the other hand can be much more easily accessed than airports, there is no check-in and security check required and the destination railway station is generally in a very central location close to hotels or offices that need to be visited on a business trip. Furthermore, trains offer generally great scenery while travelling and also offer more legroom. Most importantly the prices are generally lower than those of prestigious airlines like Lufthansa. Alternatively, travellers could use their own car, which would be more time consuming, but would have the advantage of increased flexibility and having transportation at the destination location and not having to use public transportation or taxis. Depending on the distance, this substitute can be either more costly or less expensive (Jacob Jaksova 2003). Moreover, short international trips to major European capitals are often done by bus and also by ferry if it is a tr ip to the United Kingdom. From my experience this is the most inexpensive way of travelling throughout Europe. However, there is no real substitute to flying if the desired destination is overseas. The only alternative to planes would be ships and unless the customer is looking for a relaxing trip on the oceans, it will just take too long to reach the destination. Recently there is also a tendency of larger companies towards purchasing corporate jets rather than flying first class. According to Costa et al. (2002) corporate jets might reduce first class traveller by 10% by 2005. 4.5   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Competitive rivalry Highly competitive industries are generally less profitable as the cost of competition is high or customers are receiving the benefits of lower prices. Competitive rivalry is affected by industry growth, brand identity, fixed costs, as well as barriers to exit (Wheelen Hunger 2000, p. 63). It can be said that the airline industry is highly competitive and that industry growth is fairly moderate with airlines struggling in taking away market share from each other. The barriers to exit are considered to be very high. Planes that are grounded dont earn any returns and it is quite complicated to dispose of these assets. Due to bankruptcy laws, airlines that are in financial stress can often remain competitors for a long time (Del Vecchio 2000). In Lufthansas home market, the European airline industry has seen some recent changes with the development of low budget airlines that compete with the more mature airlines. Additionally, recent airline crises like September 11 put even more pressure on all competing airlines. This leads to a process of consolidation and the creation of strategic alliances. Airlines within one alliance dont tend to compete directly with each other anymore, which lead to a slight decrease of the pressure (Jacob Jakesova 2003). By utilizing a range of strategies a company can have an effect on the five forces of competition and thus reform the attractiveness of an industry. Historically, various strategies shifted the principles of competition and future events like war or new inventions are likely to reshape the airline industry again. Lufthansas ability to be very cost effective is also of advantage. As part of its strategic change, Lufthansa implemented Program 15, a strategic cost management program. The goals of this program included an improvement of the competitive position through a reduction in cost, internationalisation of cost-structure and making staff conscious of reducing costs in their daily work. This cost management contributed substantially to Lufthansa making profits again in 1999 (Bruch Goshal 2000). Generally it can be said that Lufthansas change management during its crisis was outstanding. Its management was able to identify the signals for the potential problems, showed great strategic leadership through CEO Jà ¼rgen Weber and transformed the organization into a profitable company. This experience in strategic change management is very valuable and will surely help the organization with any challenges in the future (Bruch Sattelberger 2001b). Furthermore, Lufthansas management is very conscious of the need for innovation and customer service. They developed the brand ambassador concept where employees with use of personality and dedication create brand loyalty through day-to-day interactions with the customer (Rubens 2004). They recently also introduced a range of innovations and quality improvements at their passenger airlines and some innovations will be implemented in the near future. A special focus is on the business class on long-haul routes as this segment is the most profitable one. The key feature of Lufthansas new business class is a technically sophisticated seat that converts into a flat bed, which is 2 meters long, the longest bed in this class (Manuelli 2003). Lufthansa is also the first airline in the world that offers broadband Internet access on board its planes (Anonymous 2003). On the ground, they are also improving procedures for their status customers with Lufthansas Priority Service by relying on the Internet, mobile phones and check-in terminals simplify reservations and ticket sales as well as to reduce check-in times. A good example of Lufthansas innovative strength is their new terminal at Munich Airport, which was build to optimise operational procedures. In accordance with the best international standards they reduced the minimum connecting time to 30 minutes (Lufthansa Annual Report 2003). An additional strength of Lufthansa is that it has a policy of operating a young and modern fleet. They recently started a fleet renewal program in 2003 and by 2005 they will replace older aircrafts with ten new Airbus A340-600 jets, as well as ten new Airbus A330-300s. By 2007 the new Airbus A380 super jumbo will go into service that can carry 40% more passengers than the currently largest aircraft. The average age of Lufthansas fleet is just under 9 years, which puts them into a good position in comparison to airline world average of almost 15 years (Lufthansa Annual Report 2003). Another strength, which gives Lufthansa a comparative advantage, is the use of a premium executive jet service on North Atlantic routes like Dà ¼sseldorf-Newark and Munich-Newark. This involves flights in Boeing and Airbus aircrafts that were remodelled so they fit 48 business class seats only and no economy class. Lufthansa introduced this service, because they identified that these routes were in high demand for business class travellers (Ghazvinian Fragala 2002). Lufthansa also offers a very good website that has a lot of features the customers can utilize. Online bookings have more than doubled in 2003. Lufthansa are also constantly expanding their destinations, which can be reached with etix, the companys electronic tickets that offer convenient paperless travel. The number of passengers that use etix is gradually increasing as it can be used to fly to 70 per cent of Lufthansa destinations (Lufthansa Annual Report 2003). Lufthansas Miles More customer loyalty program is also a great tool to encourage customers to fly Lufthansa again. The program has grown in popularity since it was introduced ten years ago and developed into the leading frequent flyer program in Europe (Miles More). Furthermore, Lufthansa is one of the founding members of the Star Alliance, the worlds leading airline alliance. The alliance was voted Alliance of the Year in 2003 on three different occasions (Lufthansa Annual Report 2003). The Lufthansa group consists of seven independent subsidiaries. Lufthansa centrally coordinates their strategy development process. A principal element of the Lufthansa group is clear customer-supplier-relationships between the seven companies. However, the relationships between the individual companies are a weakness, as they dont function as planned. Lufthansa has not reached the required relationships for a market-based internal coordination. So far, the internal customers dont act as normal customers yet since the demand conditions, which they would never demand with other external business partners (Bruch Ghoshal 2000). Another weakness is that the openness for change has almost vanished since Lufthansas amazing turnaround was achieved. During the turnaround, changes were implemented very quickly, but today it takes a very long time for small innovations to take place. Lufthansa also admits not to be perfect in the areas of punctuality, luggage safety, waiting periods, technical reliability and telephone availability, but is in the process of improving this situation (Bruch Ghoshal 2000). Another weakness could be that Lufthansa does not do anything about their low-budget competitors in the European market. Lufthansas management claims that they would not start a low-fare airline under its name, as it would cannibalize its own traffic and damage its brands (Anonymous 2002). 5.0 Economic strategy of Lufthansa According to Hitt (2003, p. 122), a Economic strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. The literature suggests that there are a number of different business-level strategies. However, I believe that in the case of Lufthansa an integrated cost leadership/differentiation strategy is used. The reason for this is that Lufthansa operates globally and therefore it is vital for them to implement cost leadership strategies as well as differentiation strategies in order to develop competitive advantages. Lufthansas Program 15 serves as a good example of a cost leadership strategy. After Lufthansa had undergone privatization they implemented this extensive strategic costs management program with the goal of reducing overall unit cost by 20% within five years (Bruch Sattelberger 2001a). In terms of a differentiation strategy, Lufthansa constantly tries to come up with a range of innovative ideas to stay ahead of the competition. A list of these ideas could be seen in the strengths section of my SWOT analysis of Lufthansa. It can be concluded that Lufthansa has made the right decision to implement an integrated cost leadership/differentiation strategy, since the literature also suggests that there is a relationship between the successful use of this strategy and above-average returns (Hitt 2003, p. 135). 5.1   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Corporate-level strategy of Lufthansa According to Hitt, a corporate level strategy involves specific actions by a company to gain a competitive advantage by having a group of different businesses competing in several industries (2003, p. 183). In the case of Lufthansa, the organisation consists of seven economically independent subsidiaries that include LH Passenger Service, LH Cargo AG, LH Skychef, LH Ground Services, LH Technical Services, Thomas Cook Travel Agency and LH IT services. The individual Lufthansa companies are quite successful. LH Technical services, LH Skychef and LH Ground Services are number one in their market (Bruch Ghoshal 2000). Product diversification, a primary corporate-level strategy deals with the scope of the industries and markets in which the company competes in addition to how managers buy, establish and sell different businesses to equal skills and strengths. In regards to Lufthansa, the organisation uses a related diversification corporate-level strategy which means that Lufthansa generates more than 30% of its sales revenue outside a dominated business and its businesses are related to each other since Lufthansa centrally coordinates their strategy development process. Lufthansas motives for such a corporate level strategy are likely to be issues such as taking advantage of economies of scope, sharing activities, transfer of core competencies, and an increase in market power as well as blocking competitors through multipoint competition (Hitt 2003, p. 187). 5.2   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Strategic Alliances While concentrating on internal costs and structural redevelopment, Lufthansa also worked on its external relationships by implementing the strategy: growth through partnerships (Bruch Sattelberger 2001b). While in other industries globalization triggered a wave of mergers of companies that operate internationally; airlines had to look for alternatives because national ownership regulations do not allow cross-border mergers. No airline worldwide has the capacity infrastructure to offer a suitable network by itself. Only through cooperating and alliances can the industry cater for the mobility requirements of the world economy. Therefore, founding the Star Alliance was a logical consequence and Lufthansa was one of the key-founding members of the first airline network in the world (Global Network Five years of Star Alliance). The purpose of the Star Alliance is to realize higher revenues and decrease costs by exploiting synergy effects. The synergies range from shared use of ground facilities like check-in-counters, a city office in Paris and also airport terminals. At the airports in Frankfurt, Copenhagen, Shanghai and Beijing the Star Alliance has its own check-in area with staff member of partner airlines. In addition the first Star Alliance Lounge went into service 2001 at Zà ¼rich airport. Other advantages include common frequent flyer programs, joint travel agency contracts collective market research and joint purchasing of materials and equipment (Economic effects for the airlines). Alliance members can also use code sharing a system by which two or more airlines agree to use the same flight number for a flight in order to attract more business by means of extending their networks through partner airlines (Collis 1998). Besides cost-saving synergies, the combined networks of Star Alliance members also offer many customer benefits. In comparison with other industry alliances, the Star Alliance is the recognized market leader (see Appendix 2). For 82 % of all offered flight connections, the Star Alliance is the fastest network. Every four seconds an aircraft of the Star Alliance starts or lands somewhere in the world and it possible to fly once round the world in 36 hours with Star Alliance airlines. Other fundamentals of its brand value include the presence of its members in important home markets and large international hubs, a high degree of customer recognition, excellent service and good cooperation between the frequent-flyer programs of the individual airlines. Furthermore each airline has its individual strengths with a strong market position in its home bases and regional hubs like Lufthansa in Germany. Due to the good cooperation, a whole network of these hubs was established and regional str engths complement each other (see Appendix 3). Additionally, most members also have regional alliances with smaller airlines, which improve the Star Alliance network even further (Global Network Five years of Star Alliance). Research has also shown that alliances result in lower ticket prices and more flight connections. It is suggested that there is a price advantage of an average 6% in comparison with conventional tariffs. In terms of the Star Alliance this leads to estimated passenger savings of between 50 and 82 million dollars per year. Additionally due to the sharing of terminals service counters of the airlines are more easily seen and found and walking distances are decreased. Having counters in the same area at airports also creates a single contact point and improves changes and baggage loading. Staff members of partner airlines can also help and advise customers with enquiries on behalf of the entire alliance. For the alliance to work properly certain level of quality needs to be ensured. This is achieved through frequent mutual quality checks. Jointly agreed quality standards in the areas of security, services and environmental protection are checked on a regular basis (Global Network Five years of Star Alliance). 5.3 Strategic Leadership and German Culture Strategic leadership, which is the ability to anticipate, envision, maintain flexibility and empower others to create strategic change as necessary (Hitt 2003, p. 386) was extremely important in Lufthansas turnaround. The main responsibility for effective strategic leadership generally rests at the top, especially with the CEO, but also with other recognized strategic leaders like members of the board of directors and the top management team. In the case of Lufthansa, the formulation and implementation of strategies was also in the hands of the top-level management, in particular Dr. Jà ¼rgen Weber, who was Lufthansas CEO at the time. In 1992 Jà ¼rgen Weber realized the full extent of Lufthansas problems and called for a crisis management meeting with 20 carefully selected senior managers. The outcome of this meeting was Program 93, 131 key actions aimed at drastically cutting about 8,000 jobs, lowering non-personnel costs, reducing the aircraft fleet as well as increasing revenues by DM 700 million to reduce the losses of DM 1.3 billion. The Executive Board then appointed a number of different teams that had the task to achieve the implementation of these 131 projects. Line management was responsible for the implementation of the staff cuts. It was seen as important for the success of Program 93 that line managers took that responsibility to realize the unavoidable cuts, on the one hand, but also to motivate the remaining employees, on the other hand. Jà ¼rgen Weber also created the OPS team (Operations Team) as a forceful engine in the process of implementing the 131 actions. They constantly monitored, created activities, advised and supported the line managers who were ultimately responsible for the implementation process. Weber showed his total support for the OPS team and personally supported them in many ways. He also implemented visible actions like a 10% reduction of the salaries of all Executive board members (Bruch Ghoshal 2000). Furthermore, to convey and spread these actions, Lufthansa implemented Town Meetings, which were initially an idea by General Electric. A typical agenda of a Town Meeting would mainly involve a talk with the particular Lufthansa units management about problems a

The Effect of Politics and Race on Identity of Puerto Ricans Essay

The Effect of Politics and Race on Identity of Puerto Ricans As is present in many articles we read about Spanish rule and American rule, there were always references to race, and the mix of races that the Puerto Ricans are, and how that has affected their identity. Kristen Moran hypothesized as to what was the origin of Spaniard's need to assert their clean lineage: "The attitude of the Spaniards concerning pure lineage, which can be traced back to the Muslim occupation of Spain, further complicated race interaction in Puerto Rico." The Ferrà © novel begins with Buenaventura's arrival to Puerto Rico from Spain, who is a member of a bourgeoisie family. Immediately there are references to the importance of a â€Å"clean lineage† and books which tracked marriages to make sure that families were remaining true to their roots. Families wanted to assert that there was no â€Å"bad blood† running through the family when another bourgeoisie family is ready to marry off their son or daughter. David Bernstein expands on this idea by writ ing that, "Buenaventura preaches his racial superiority and separation from others to his children, in the hope that this will ensure the 'purity' of future generation's white blood." This is why early on the citation by Gonzà ¡lez of â€Å"returning to Spanish era† as â€Å"returning to a society in which the white and property-owning part of the population has always oppressed and despised the non-white and non-property-owning part.†(Gonzà ¡lez, p4) was utilized in the conclusion of my first paper on early Spanish rule and has not left the schema I have created in my mind of how each set of rulers viewed Puerto Ricans. Ferrà © touches on an area that I had not connected myself, nor had read anywhere yet. This realization that... ...n the Twentieth Century. 2nd.ed. (Westport, Conn.: Praeger, 1996). Ferrà ©, Rosario. The House on the Lagoon (NY: Farrar, Straus and Giroux, 1995). Gonzà ¡lez, Josà © Luis, â€Å"Puerto Rico: The Four-Storeyed Country,† from Puerto Rico: The Four-Storeyed Country and other essays (Princeton and NY: Markus Wiener Publishing, Inc.), 1-30. Moran, Kristen. Home page- H378. http://frontpage.trincoll.edu/kmoran2/project.htm Morris, Nancy. Puerto Rico: Culture, Politics, and Identity (Westport, Conn.: Praeger, 1995). Pearson, Stacie. Home page. 10 December 1998. <http://frontpage.trincoll.edu/spearson/puerto2.htm>. Puerto Rico Herald Vol. 2 No. 25. <www.puertorico-herald.org> Rivera, Fabian. Home page-H378. http://frontpage.trincoll.edu/frivera/newpage3.htm Rodriguez, Richard. Home page- H378 http://frontpage.trincoll.edu/rrodrigu/h378p.htm

Christians living

SOME nine hundred years ago, in 1096, the First Crusade was about to begin. If you had lived in Western Europe then, you might have witnessed large movements of men, wagons, horses, and ships. They were headed for Jerusalem, the holy city, which had been under the control of Muslims since the seventh century C. E. That was the first of the Crusades. Many historians list eight major ones. These expeditions scarred the history of East-West relations. They were accompanied by massacres and cruelty committed in the name of God and Christ. The last major Crusade began 174 years later, in 1270.The word â€Å"crusade† comes from the Latin word crux, which means â€Å"cross. † Members of the many expeditions sewed the symbol of the cross on their clothing. Why Crusades occurred? The declared motive for the Crusades was to take Jerusalem and the so-called holy sepulcher from the Muslims. But the causes ran deeper. Except for a few incidents, relations between the professed Chris tians living in the Middle East and the Muslims had been relatively calm. An important factor that led to the Crusades was the turbulent political, economic, and religious climate that prevailed in Europe.In the 11th century, new rural lands were being given over to agriculture, in an effort to increase food production. City areas were enjoying new life. The population was growing. However, when a famine plunged large numbers of peasants into poverty, many poured into the cities, where unemployment and misery awaited them. Protests often erupted. At the top of the social hierarchy were numerous feudal barons. These professional warlords wanted to take advantage of the political vacuum created by the breakup of Charlemagne’s empire and conquer new estates.The Church of Rome was also experiencing a period of turmoil. In 1054 it lost control of the Eastern Church. In addition, many of the clergy were being accused of immorality and of meddling in politics. In the course of time, other Crusades were mounted, the last in 1270. However, because of defeats, many began to doubt the legitimacy of such enterprises undertaken in the name of religion. If God really approved of these â€Å"holy† wars, they thought, he would certainly have favored those who claimed to act with his blessing.Yet, from the 13th century, church jurists tried to justify such religious wars and the clergy’s role in them. Durig those time and even until now, â€Å"People killing people in the name of religion in Northern Ireland has cost 2,079 lives in 12 years; 144 of those policemen,† says the Los Angeles Times. Though the basic issue is civil rights—the rights of the Catholic minority versus that of the Protestant majority—religion is deeply involved, and both sides have resorted to a militant solution.The country has been transformed â€Å"from a quiet backwater and stronghold of strict moral standards to a free-living, mid-20th century society, corru pted and changed by violent words and deeds,† writes Barry White in the Toronto Star. While, â€Å"activist priests have taken to carrying guns† in the north, according to Newsweek, Muslims in the south are fighting their ‘holy war’ against Catholic majority rule.Conclusion THOUGH the world at large appears to be at peace, â€Å"more than two dozen small wars flicker and rage around the globe . . . taking thousands of lives,† says an Associated Press dispatch. Closer examination reveals the â€Å"dismal truth that probably half or more of the wars now being fought around the world are either openly religious conflicts or involved with religious disputes,† says newspaper columnist C. L. Sulzberger. The said Crusade affects the people in the community and so made them have their own perception of the war. Some commented negatively about the crusaders and some agreed to their aims. Different opinions occur on to which they support.But the Crusade s and their failure should have taught that economic greed and desire for political prominence can lead to fanaticism and massacre. But the lesson has been ignored. The evidence lies in the many conflicts that have continued to stain many parts of our planet with blood. In these, religion often serves as a front for abominations. References Watchtower Bible and Tract Society, â€Å"What Do The Facts Show? †, 22 March, 1982, pp. 4-5. Watchtower Bible and Tract Society, â€Å"Religion’s Role in Past Wars†, 22 April 1972, pp. 11-15.

Do Video Games Make Violence to Children Essay

Italy has many beautiful and historic cities worth a visit. Travel to cities is best done by train as driving in Italian cities may be very difficult and the extensive Italian train system is inexpensive. Most city centers are well-suited to walking and parts of the city centers may be closed to transportation. Large Italian cities generally have good public transportation, too. Check the distances between cities with our Distance Calculator. 1. Rome – Roma Piazza del Popolo picture by James Martin Rome is the capital of modern Italy. Rome is full of history everywhere you look. It has many ancient monuments, interesting medieval churches, beautiful fountains, museums, and Renaissance palaces. Modern Rome is a bustling and lively city and has some excellent restaurants and nightlife. The Vatican and St. Peter’s are also found in Rome. 2. Venice – Venezia Basilica San Marco  © by Martha Bakerjian, licensed to About.com Venice is a unique city built on water in the middle of a lagoon. Venice is one of Italy’s most beautiful and romantic cities as well as one of the most popular for visitors to Italy. The heart of Venice is Piazza San Marco with its magnificent church. There are many museums, palaces, and churches to visit and wandering along Venice’s canals is interesting. Venice is in the northeast of Italy and historically was a bridge between East and West. 3. Florence – Firenze Ponte Vecchio  © by Martha Bakerjian, licensed to About.com Florence is one of the most important Renaissance architectural and art centers. Its Duomo and Baptistery are magnificent but crowded with tourists as is their large piazza. Florence has several interesting museums with many famous paintings and sculptures. There are also Medici palaces and gardens. Florence is in Tuscany. 4. Milan – Milano Picture of Milan Duomo  ©2006 by James Martin Milan, one of Europe’s richest cities, is known for stylish shops, galleries, and restaurants and has a faster pace of life than most Italian cities. It also has a rich artistic and cultural heritage. Its Duomo, with its beautiful marble facade, is magnificent. La Scala is one of the world’s most famous opera houses. 5. Naples – Napoli Castel dell’Ovo  © James Martin Naples is one of Italy’s most vibrant cities. It lies on the coast south of Rome and is the most important city in southern Italy. Naples has recently undergone some renovation but still retains much of its old character. It holds many historical and artistic treasures. 6. Verona Roman Arena  © Martha Bakerjian, licensed to About.com Verona is known for the story of Romeo and Juliet and for its Roman Arena, the third largest in Italy and the venue for a top opera festival. Verona has a good medieval center, Roman remains, and an interesting castle complex. It’s the fourth most visited city in Italy and well worth a stop on a northern Italy travel itinerary. 7. Turin – Torino Turin Picture  ©2006 by James Martin Turin, host of the 2006 Winter Olympics, is a major cultural hub with excellent museums, elegant shops, and good restaurants. There are also some very nice examples of baroque architecture and historic palaces. Turin has many historic cafes, artisan workshops, and arcades. Turin is in the northwest of Italy, between the Po River and the foothills of the Alps. 8. Bologna Bologna Picture  © James Martin Bologna is known for its beauty, wealth, cuisine, and left-wing politics. Its streets are lined with beautiful arcades, making it a good place to walk even in the rain. It has one of Europe’s oldest universities and a nice medieval center. There are several attractive squares, lined with buildings with nice porticoes. Bologna is the capital of the Emilia-Romagna region in northern Italy. 9. Perugia View of Perugia  © by James Martin Perugia is a very cosmopolitan city and home to two universities. It hosts a world-famous jazz festival in the summer and its University for Foreigners is a great place to learn Italian. It’s a walled city on a hilltop with great views over the valley and has several important monuments and a good central square. Its history goes back to the ninth century BC. Perugia is in the center of Italy and is the capital of the region of Umbria. 10. Genoa – Genova Genoa Duomo  © James Martin Genoa, on the northwest coast of Italy, is Italy’s principal seaport. Genoa was a 2004 European Culture Capital; money flowed into the port city made famous by Columbus and now it’s a better place than ever to visit. Genoa has a fascinating aquarium, an interesting port area, and a historic center said to be the largest medieval quarter in Europe, with a wealth of churches, palaces, and museums.

Chemical Composition of Black Powder or Gunpowder

Chemical Composition of Black Powder or Gunpowder Black powder is the name given to the earliest known chemical explosive. It is used as a blasting powder and a propellant for firearms, rockets, and fireworks. The composition of black powder or gunpowder is not set. In fact, several different compositions have been used throughout history. Heres a look at some of the most notable or common compositions, plus the composition of modern black powder. Black Powder Basics Theres nothing complicated about the formulation of black powder. It consists of charcoal (carbon), saltpeter (potassium nitrate or sometimes sodium nitrate), and sulfur. Charcoal and sulfur act as the fuel for the explosion, while saltpeter acts as an oxidizer. Sulfur also lowers the ignition temperature, which increases the combustion rate. Charcoal is used instead of pure carbon because it contains incompletely decomposed cellulose. It has a much lower autoignition temperature. Black powder made using pure carbon will ignite, but it wont explode. In commercial black powder preparation, potassium nitrate or another nitrate (e.g., sodium nitrate) usually is coated with graphite (a form of carbon). This helps prevent electrostatic charge build-up, reducing the chance a stray spark will prematurely ignite the mixture. Sometimes black powder is tumbled with graphite dust after it is mixed to coat the grains. In addition to reducing static, the graphite reduces moisture absorption, which could prevent gunpowder from igniting. Notable Black Powder Compositions Typical modern gunpowder consists of saltpeter, charcoal, and sulfur in a 6:1:1 or 6:1.2:0.8 ratio. Historically significant formulations have been calculated on a percentage basis: Formula Saltpeter Charcoal Sulfur Bishop Watson, 1781 75.0 15.0 10.0 British Government, 1635 75.0 12.5 12.5 Bruxelles studies, 1560 75.0 15.62 9.38 Whitehorne, 1560 50.0 33.3 16.6 Arderne lab, 1350 66.6 22.2 11.1 Roger Bacon, c. 1252 37.50 31.25 31.25 Marcus Graecus, 8th century 69.22 23.07 7.69 Marcus Graecus, 8th century 66.66 22.22 11.11 Source: The Chemistry of Gun Powder and Explosives

10 Persuasive Essay Topics on Sports as a Social Institution

10 Persuasive Essay Topics on Sports as a Social Institution When you want to sway an audience to agree with your point of view by presenting arguments, reasons, thoughts and a lot of research, you are actually trying to write a persuasive essay which persuades readers to agreeing with your view. If you don’t have any idea on how to write a persuasive essay on sports as a social institution, we’re here to help. In this first guide, 10 facts for a persuasive essay on sports as a social institution, you’ll learn 10 interesting and informative facts on the topic. This guide helps you attain knowledge on your chosen topic without spending extensive time on research because at the end, you’ll find 7 references from where these facts were gathered. We also have a second guide, 20 topics on sports as a social institution, so you don’t have to brainstorm for specific subtopics. This guide also includes a sample essay as an example on how to write a persuasive essay on sports as a social institution. Naturally, we’ve included 7 references to those topic ideas, for your convenience. Finally, in our last guide, we have included everything you need to know about persuasive writing and how a well-written persuasive essay should be planned. You can look at it as an academic guideline to writing the perfect persuasive essay so that your professor admires your hard work and efforts. Without further ado, here are 10 Facts on Sports as a Social Institution: Around the globe, sports have shaped up social individuals as well as political identities. It has been a subject of popular literature in terms of legends, club histories, heroes, games and championships. Sports have also been credited in popular films, television drama and various other narratives that have influenced millions, even billions of people worldwide. In fact, over recent years, sports have been taken as an important subject of intellectual inquiry, attracting overwhelming interest in the process. Most television programs around the world depend on sporting events to increase their viewers and subscribers. For example, the World Cup Tournament of 2006 held in Germany, attracted 30 billion viewers from around the world. The final match alone was watched by 2 billion people all over the globe. When the internet was used for the first time to enhance viewership of the Beijing Olympics, billions of people watched the seasonal feats of Michael Phelps and Usain Bolt. By reaching audiences through the internet, it boosted the global viewership that was well beyond its traditional boundaries. Many major sports teams serve as a source of pride and social status for individuals who own them. In addition, there are major protagonists in sports who are admired and recognized all over the world. Some of them include David Beckham, Michael Jordan, Ronaldinho, Thierry Henry, Kobe Bryant, Tiger Woods and Lionel Messi. Sports have risen to fame today due to the fact that it became a necessity for people all around the world and social societies demanded it as a means of leisure and entertainment. It is one of the oldest and most essential social institutions that still serves its purpose to gather people from all over the world to one place, idea, or thought. Bodybuilding is a good example. It was becoming a basic need for people to stay fit and look good, and so this sport came into existence. Sports have taken a highly necessary role all over the world, even politically. Tony Blair, the former British prime minister, was sorely disappointed upon receiving news that David Beckham would be unable to take part in a crucial match because he broke his right foot. Mr. Blair went as far as to stop a crucial meeting from being held upon receiving such devastating news. This represents a strong influence of sports on the world, even on a political scale. Sports seem to be a central part of every living and breathing person in this world. In fact, the popularity of sports has been rising so dramatically that it has connected itself with other social institutions. Sports has also been seen to influence culture and in some cases, religion. If you see the sports from a functional perspective, it has played a major role in maintaining the status quo and social order. In ancient civilization, sports and protagonists of sports were influenced by those who had money and power. Even though most sports had been made official, it could still be â€Å"democratized† in terms of fairness and sportsmanship. On the one hand, there was a strong concern to maintain and protect fair play, however, on the other, it has been suggested that there was a strong urge to cheat as well, in order to secure a certain social and financial status. The â€Å"Hegemonic Sports Culture† has been comprised of sports that are defined by watching, living, speaking, following, debating and even worrying about the sport in a way, rather than just playing it. Regardless of the nature of a game, many societies have been seen to have a hegemonic sports culture. Professional sports are a global force that’s quickly spread all over the world. It has miraculously become a common language even though we still see distinctiveness in local sports, where regional teams are followed by loyal local fans forever. Masculine sports such as basketball, baseball, football, soccer and hockey have given rise to sports protagonists among millions of predominantly male fans all over the world. We’re sure you enjoyed reading through these facts. Now you have something to start with. Let’s proceed to our second guide where you are bestowed with 20 relevant topics that’ll help you write a persuasive essay on Sports as a Social Institution. We also have a third guide, Writer’s Guide for a Persuasive Essay on Sports as a Social Institution, to sum up everything. References: Yilmaz Kaplan, Demet Tekinay, Dr. Alkan Ugurlu; 2013 â€Å"Social Status of Sport: Sport as a Social Event, Phenomenon and Institution† International Journal of Science, Culture and Sports. iscsjournal.com/Makaleler/588422276_8ugurlu.pdf Kaplan Y (2011). Hukuk Kurumu, Ed. Gà ¼Ãƒ §là ¼, Sevinà §. Kurumlara Sosyolojik BakÄ ±Ã…Ÿ, Kitabevi YayÄ ±nlarÄ ±, Sosyoloji Dizisi 8, 2. BaskÄ ±, Ä °stanbul. Kaplan Y (2007). Toplumsal Kurum Olarak Spor ve Ä °Ã…Ÿlevleri, UluslararasÄ ± Akdeniz Spor Bilimleri Kongresi Bildiriler KitabÄ ±, 09 11 November 2007, Antalya TÃÅ"RKÄ °YE. Lars Rensmann, Andrei S. Markovits; 2010 â€Å"Gaming the World: How Sports Are Reshaping Global Politics and Culture† Amazon Prime  https://www.amazon.com/Gaming-World-Reshaping-Politics-Culture/dp/069113751X Eric M. Leifer, 1998 â€Å"Making the Majors – The Transformation of Team Sports in America† Harvard University Press  hup.harvard.edu/catalog.php?isbn=9780674543317 FREY, JH; EITZEN, DS; 1991 â€Å"Sport and Society – Annual Review of Sociology† Volume 17, Pages 503-522 Annual Reviews Inc. Coakley, J. J. (1997). Sport in society: issues controversies.Sport in society: issues controversies. McGraw-Hill Inc.

Art History Essay The Breakfast Scene

The symbol of cupid presented reflects themes presented within Venus, Cupid, Folly and Time , displaying aspects of misguided love , primarily emphasizing how lust compromises the morale of individuals. That the count presented sense of obliviousness in regards to the consequences of his actions, well eventually taint his family name in regards to the infidelity committed , but also such constant self ind... ...h open composition, provides a rustic appeal in order to emphasize the working class. The portrait depicts a fisherman’s daughter , maintain her lovely complexion , in order to lure individuals , to purchase selfish that resides in a basket placed upon her head, establishing a sense of euphoria. Adopting such seductive appearance to establish a form of interest , not only to display her services , but also displays aspects of eroticism and feminism , very large breast that references aspects of fertility , but also the delicate facial features the use of blush to complement her subtle complexion. The use of contropasto, the bodily composition presents a sense of equilibrium in which the action correlates with the action depicted, in which her arm is extended in order to maintain the balance. While the other resides at her waist idealizing her feminine figure.

Financial Crisis Paper Essay Example | Topics and Well Written Essays - 1750 words

Financial Crisis Paper - Essay Example It is a result of improper policies implemented in the financial system which gives birth to numerous micro and macro economic problems. These reasons have varying severity and have affected the global economies of the world. The recent recession has webbed the entire global economies into its victimization and caused severe distress among both, developed and under-developed countries of the world. Recent economic crisis has paved way for inequality across many nations and has had a dampening impact upon their financial position. This crisis has led to other severe crises and it is matter of global concern. Economists believe that the deregulations of 1980s are the major root causes for the recent financial crisis which is likely to bring an end to free market economics. Reagan administration initiated liberalization, which brought about breakdowns in series due to which the government intervened and ultimately the structure destroyed the whole financial system. The Financial Crisis In 2008, the global market collapsed, The Bush administration figured out that only government intervention could save the companies whose failure could fetch destructive reactions. American Insurance Group (AIG) and Fannie Mae and Freddie Macare are those two giants which suffered from this crisis. The companies had come to this point of crisis because free market had allowed them to make investments due to which the institutions were posed to risks. Millions of people in America lost their jobs and had their savings bushed. A number of factors have been blamed for this crisis but economists believe that free market is the very basic factor amongst all. Nobel laureate Joseph Stiglitz wrote in his book Freefall that market fundamentalists and deregulators are responsible for the mess. The situation showed that free-market economists failed and market fundamentalists were responsible for the economic crunch (Sorman 2010). The economy of United States of America witnessed only a few m inor recessions each for a short period of time. Those recessions did not stir the economy enough to cause economists to develop a well descriptive recession model. With no major recessions over a long time, the economists tend to believe that the crisis may not happen. The model derived by free market economists was running a healthy economy from 80s to 2008 making economists believe that the model may not turn the situation upside down (Sorman 2010). The free market economists argue that it is the recession that prompted the financial crisis and not the other way around. Economists believe that recession began in 2007 when consumer spending decreased, overdue borrowing increased and lack of interest of homeowners in their mortgaged houses increased. They claim that the failure of financial derivatives were not the cause of financial turmoil as they were helping in the stabilization of the economy. Economists assume that due to a sudden economic downfall government faced pressure f rom political and non political forces to take immediate steps. This led to government spending and its intervention in the scenario which seemed quite logical at that time. The situation worsened with new public debts and regulations which stumbled upon the recovery of the economy (Sorman 2010; Bordo et al 2010). The economy could be recoiled in a quicker way if government had allowed enterprises to

Read the attached book chapter (Sandel (2009) Doing the Right Thing, Essay

Read the attached book chapter (Sandel (2009) Doing the Right Thing, Justice). its only 3 pages - Essay Example Each of these ideas points to a different way of thinking about justice†. (Sandel 6) Advocates of price gauging laws promote the need of a third party (the government) to step in to ensure that practices such as these do not direcly effect the consumer in a negative way. However, those that argue for freer markets such as Thomas Sowell merely state that such practice is a necessary action of a market that attempts to justify supply and demand in a crisis situation. In other words, these are prices that consumers are willing to pay to suppliers so an equalibrium is met within the markets. This in effect boils down to a question of welfare versus freedom of the market/consumer and/or supplier. As such, arguments for regulation point to the fact that in times of a crisis or emergency there is no â€Å"free† market as individuals are forced to consume necessities such as lodging, food, and fuel and are at the mercy of suppliers awho lord over them in an extortionary way. Furthermore, the brief write up grapples with the fact that our current economic system is dominated by greed; accordingly, it attempts to juxtapose this fact with the claim that greed is not in and of itself evil – yet too much greed is. What is of interest to this particular author is the fact that from an free market economic standpoint it is rational to allow the practice of price gauging to take place as it is merely a represetnation of dynamic supply and demand and the complex interplay between consumer and supplier with regards to what equilibrium they can agree to meet. However, when one realizes that the economic system under which our nation operates is quite a far cry from a true free market, the need for and positive benefits that regulation provide can only then be fully

Influence and change in organizations Essay Example | Topics and Well Written Essays - 1000 words

Influence and change in organizations - Essay Example Since the â€Å"creativity, innovation, individuality, and independence† of the workforce decreases out of poor teamwork (Robertson, Callinan and Bartram, 2002, p. 29), the overall work performance of a team tends to suffer. Also known as interpersonal interaction conflict, another factor that can trigger a significant decline in work performance is the presence of relationship conflict. Based on the research study that was conducted by Martinez-Moreno et al. (2009), the presence of relationship conflict when combined with process conflict could severely damage the team performance. Similar to the research findings of Martinez-Moreno et al. (2009), explained that the presence of positive and negative mood has a significant impact over the level of relationship conflict. According to De Dreu and Weingart (2003), relationship conflict occurs when the team members encounter interpersonal disagreements with one another. When left unresolved, the presence of task-related and relati onship conflicts could adversely affect the team members’ desire and satisfaction to work with the group (Bono et al., 2002). In most cases, having a large group of unsatisfied team members is enough to motivate themselves to withdraw themselves from working with the team. Given that the number of unsatisfied team members is high, the chance wherein the group performance would decrease increases. In the past, several studies revealed that the presence of interpersonal disagreements could negatively affect the mood, feelings, and work attitude of the involved team members (De Dreu and Weingart 2003; Bono et al., 2002). With this in mind, it is clear that the presence of relationship conflict can be considered as a hindrance towards the ability of the team to improve the quality of their group performances. Since the presence of relationship conflict can create an unhealthy work environment, the Chief Executive Officer (CEO) should challenge himself to keep on searching for new ways on how to effectively solve issues not only related to relationship conflict but also that of a task-related conflict. To improve team performance, the CEO should be aware of the importance of having a good leadership approach. Basically, a good leadership skill is necessary to increase the ability of the CEO to motivate the team members to become not only a self-directed employee but also an active team member who can be easily directed to work towards a single organizational goal (Bambacas and Patrickson, 2008; Mayfield and Mayfield, 2006; Barbuto, 2005). In this case, the use of transformational leadership style is effective in terms of encouraging the rest of the team members to work well without much need of supervision (Winston and Patterson, 2006; Barbuto, 2005). To accomplish a collective goal, each of the team members is expected to work interdependently as they convert their inputs into a group performance (Marks, Mathieu and Zaccaro, 2001). However, the presence of conflicts makes the team unable to accomplish a collective goal. By nature, task-related or informational conflict and relationship conflict differs from one another. For this reason, Curseu (2011) strongly suggest that the CEO should carefully select the best leadership style that could effectively solve the type of disagreement. For instance, when solving problems related to relati

Organisation Essay Example | Topics and Well Written Essays - 2000 words

Organisation - Essay Example Introduction Securing the effectiveness of organizational strategies is one of the most critical challenges for managers in modern businesses. On the other hand, the elimination of threats in a firm’s environment is not feasible. This means that failures cannot be avoided but they should be rather used as indicators of organizational weaknesses that need to be addressed without delay. In practice, it has been proved that the effective management of knowledge within organizations can result to the limitation of failures, either in the short or the long term. The literature published in regard to this subject shows that the establishment of appropriately customized knowledge management systems can help organizations to control all aspects of their activities so that organizational goals are achieved. The practical implications of such project are explained in this paper by referring to Speedo Ltd, a firm operating in the British automotive industry. Since its establishment, in 1 997, the organization had to face a series of critical operational problems. Through the years it was made clear that these problems were related to the firm’s inability to manage knowledge. ... the firm’s existing knowledge management strategy could secure organizational growth, even if the benefits of the relevant project could appear with delay. It should be noted that the knowledge management strategy proposed for Speedo Ltd could be also used, with minor changes, in firms in other industries that face similar problems. 2. Speedo Ltd – Company Overview 2.1 Structure The head office of the organization is in South London. The firm’s branches across UK are estimated to 12, covering all regions of the country. All key decisions are developed in the head office where the strategic planning unit of the organization is located. Managers in branches have the power to make suggestions in regard to a series of operational issues but their potential to influence the firm’s critical projects is rather limited. The central database of the business has been implemented in the head office, where all critical organizational departments, such as the HR depart ment, the PR department and the financial department of the business are based. Employees working in branches do not have full access to the database’s data; the firm’s IT network has been arranged in such way so that the information provided to the user/ employee is filtered as of its necessity for the task assigned to the particular user. This means that each employee/ user is authorized to access specific parts of the firm’s central database. This practice has helped to reduce failures in regard to the safety of the firm’s data. 2.2 Purpose and culture The firm focuses on the sale of news and used cars of different characteristics. The firm’s founder, John Peterson, has tried to promote communication and cooperation across the organization. The phrase ‘Trust and speed in communication’

Quickest Way to Re-inflate Economy Term Paper Example | Topics and Well Written Essays - 750 words

Quickest Way to Re-inflate Economy - Term Paper Example In order to manage the crisis, the central banks across the world had little funds in their treasury to re-stabilize the economy. Â  The central banks embraced huge amount of bad debts while the monetary reserves of the central banks hit the lowest values. Due to the slowdown of the business environment in the economies like the UK, US, Ireland, Canada, Austria, Greece, etc. the amount of goods and services produced by the business decreased. This led to the large number of job cuts and the unemployment level grew beyond the normal limits. The lowering of employment reached around 10% which meant that the income level of the households lowered. The situation led to the liquidity crunch in the economies and there was little money to be spent for purchase of goods and service. The decrease in demand in the economy due to the loss of purchasing power further slowed down the business activities and the investments. Due to this reasons, the economies plunged downwards with the cyclic dec line of demand as well as the business growth. The central banks had to find ways in order to fuel the economic growth of their country. This led to shift of the focus of the central banks towards the fiscal policies in order to stage an economic turnaround. The governments and the central banks have looked for ways that would offer the quickest mode of re-inflating the economy and stage an economic recovery. This resulted in the discussion of the economic fundamentals and the parameters that are responsible for the economic growth of the country. It has to be kept in mind that economic growth could be obtained in the fastest mode through the generation of demand. The demand-driven economies have experienced rapid growth rates in the past decades which include the US, UK, China, India, Brazil, Kazakhstan, etc. Thus the Federal Reserve and other central banks all over the world focused on regenerating the economic demands.

The Impact of Creative Advertising on Consumer's Attitudes towards Literature review

The Impact of Creative Advertising on Consumer's Attitudes towards High and Low Involvement Products - Literature review Example In order to explain the difference between the high involvement products and low involvement products, an example between toothpaste and laptop is given (Bajaj, 2001). Here tooth paste is the low involvement products, while the laptop is a high involvement product. Both the products are evaluated on the basis of the benefits that can be received from them (Mintzberg and Waters, 2009). Apart from that, a high involvement product costs considerable more than a low end product (Benner and Sandstrom, 2012). Due to this reason the customer looks for differentiating factors in that particular product, which are not present in other products. The customer looks for specific features in the product that justifies the price paid for that product (Morgan and Linda, 2005). In other words the customer wants to achieve greater differentiation within the particular budget earmarked. In case of low involvement product, the products are more or less the same, offering the same benefits and features at the same cost (Bonaccorsi and Daraio, 2009). Thus, the low involvement products are characterized by less products differentiation. So for this reason the customer can reach to a conclusion easily (Robert, James and Jean, 2004). Creativity in advertising Creativity helps to transform thinking which are strategic in nature into ideas. These ideas then enable the advertisers to create effective communication (Samiee and Roth, 2003). There are mainly three different stages in creativity; create, creation and creative. In order to create, the advertisers need to float a new idea that is unique and different from the other ideas. The new idea is linked to the main purpose. It constitutes the... This report stresses that creativity in advertisements creates the difference in the way customers perceives a low involvement product and a high involvement product. The numerous experiments indicate that creativity in advertisement influences the buying pattern of the goods. The effect of creative advertisement is more on high involvement products than the low involvement products. A customer has to factor in different kinds of variables and information while buying a high involvement product. This article makes a conclusion that the involvement of the customer can be eased and the buying process can be fastened up and smoothed if the customer is made well aware of the product and the way it can be differentiated with other brands. By bringing in creativity in the advertisement the advertiser is in reality serving the same proposal although in an innovative way. The idea of doing the same and usual thing in a different way create lasting impression on the mind of the customer. The customer is able to associate with or recall the product for a longer period of time. The closest memory the customer accesses are long term memory where the information regarding the brand is stored. Creativity advertising helps to create that niche space in memory through connecting with the most basic features a customer looks while making a decision. The basic features are attention, perception, emotion, senses, reasoning, though, language as well as assimilation and recognition.

Quickest Way to Re-inflate Economy Term Paper Example | Topics and Well Written Essays - 750 words

Quickest Way to Re-inflate Economy - Term Paper Example In order to manage the crisis, the central banks across the world had little funds in their treasury to re-stabilize the economy. Â  The central banks embraced huge amount of bad debts while the monetary reserves of the central banks hit the lowest values. Due to the slowdown of the business environment in the economies like the UK, US, Ireland, Canada, Austria, Greece, etc. the amount of goods and services produced by the business decreased. This led to the large number of job cuts and the unemployment level grew beyond the normal limits. The lowering of employment reached around 10% which meant that the income level of the households lowered. The situation led to the liquidity crunch in the economies and there was little money to be spent for purchase of goods and service. The decrease in demand in the economy due to the loss of purchasing power further slowed down the business activities and the investments. Due to this reasons, the economies plunged downwards with the cyclic dec line of demand as well as the business growth. The central banks had to find ways in order to fuel the economic growth of their country. This led to shift of the focus of the central banks towards the fiscal policies in order to stage an economic turnaround. The governments and the central banks have looked for ways that would offer the quickest mode of re-inflating the economy and stage an economic recovery. This resulted in the discussion of the economic fundamentals and the parameters that are responsible for the economic growth of the country. It has to be kept in mind that economic growth could be obtained in the fastest mode through the generation of demand. The demand-driven economies have experienced rapid growth rates in the past decades which include the US, UK, China, India, Brazil, Kazakhstan, etc. Thus the Federal Reserve and other central banks all over the world focused on regenerating the economic demands.

Monarchial constitution Essay Example for Free

Monarchial constitution Essay Under the monarchial constitution of the United Kingdom (UK), the majority of prerogative powers are now exercised by the government in the name of the Crown. There are two principle definitions of Royal Prerogative (RP); that of Sir William Blackstone and that of Professor A. V. Dicey. According to Dicey, RP is defined as the residue of arbitrary or discretionary authority, which at any given time is legally left in the hands of the Crown. RP has several defining characteristics RP is inherent to the Crown, derived from common law, exercised by the government on behalf of the crown, the powers are residual and RP legitimises government actions without the need for an Act of Parliament (AOP). Before the 17th century, the monarch had all three powers, the legislative, executive and judicial powers. The judiciary started gaining independence since the Case of Prohibitions 1607 and was fully independent after the Act of Settlement 1700, which effectively removed the power of the monarch to remove a judge at will. The independence of the legislature started with the Case of Proclamation 1611 and culminated in the Bill of Rights 1689, which curbed future arbitrary behaviour of the monarch and guaranteed Parliament’s power vis a vis the Crown. With these changes made to the UK constitution and as support grew for a democratic government, RP seemed out of place in the hands of the monarch and was slowly transferred into the hands of the government to be used in the name of the Crown. It is possible for RP to be codified i.e incorporated into an AOP, as can be seen from the Constitutional Reform and Governance Act 2010 (CRGA). The CRGA codified several RPs, such as the RP to ratify treaties. The codification of RP meant that it would be under Parliamentary control and not the Executive. In the UK today, the UK government makes certain decisions based on the RP if they are not covered under any statutes. However, there have been several cases regarding the use of RP brought to the courts, spearheaded by Darnels case as well as the Case of Ship Money. The fact that these cases could be judged by the courts showed that the government (on behalf of the monarch) could exercise the prerogative power granted by the courts. Therefore, the courts have the power to determine whether that prerogative power exists and the extent of the power exercised by the government. Codifying the RP ensures that courts would not have the power to determine its existence, as they are unable to determine the validity of an AOP, as directed by Lord Reid in Pickin v British Railways Board. It would also prevent conflicts with statutes, as well as promote greater certainty and accessibility in the law. However, codifying the RP would make it more rigid, which may affect the reflexes of the government in responding to situations which are time-sensitive. Nevertheless, the current practice of the UK government with regards to such RP would be to consult Parliament first. Thus, it would be desirable to codify the RP. The RP has always been a part of common law in the UK Constitution. In the Case of Proclamation 1611, then King James I declared two royal proclamations without the consent of Parliament. When the case was brought before the court, Lord Coke held that ‘the King hath no prerogative, but that which the law of the land allows him’, meaning that the King could only exercise the prerogative power granted by the courts. Following the judgment, there were several cases which involved the use of the RP which the courts upheld. In Darnels case, the Defendant was imprisoned due to a warrant issued from the King in which there was no reason for the imprisonment. The court held that the arrest was valid as this was the exercise of the monarch’s prerogative power to arrest. The Case of Ship Money also exemplified how the court could decide if use of RP was legitimate. Hampden had refused to pay taxes to the King, upon his RP to raise revenue in an emergency situation. The court subsequently upheld the power of the Crown. Lastly, the judgment in Lord Advocate v University of Aberdeen upheld the RP that things lost, abandoned or ownerless belongs to the Crown. However, the courts have also held several decisions which restricted the RP. In BBC v Johns, BBC claimed there was a prerogative to grant immunity to them so as to avoid paying taxes. This case was famous for the dictum of Lord Diplock who stated that it is â€Å"350 years and a civil war too late for the Queen’s courts to broaden the prerogative†. Some feel that the exercise of prerogative powers was outside judicial review. Lord Devlin (in Chandler v DPP) agreed, but in his obiter statement stated that the courts will not review the proper exercise of discretionary power but they will intervene to correct excess or abuse. Despite this, not all prerogative powers are subjected to judicial review, the reviewability is dependent on its subject matter and not the source of power. In the GCHQ case, Lord Roskill mentioned that â€Å"Prerogative powers such as those relating to the making of treaties, the defence of the realm, the prerogative of mercy†¦ are not, I think, subjected to judicial review because of their nature and subject matter is such as not to be amendable to the judicial process†. Thus, with RPs, courts would have the ability to judge whether they are implemented legitimately or not, dependent on the scope of the prerogative in question, but in the case regarding AOP, courts would not be able to question its validity, as stated by Lord Reid in Pickin (as above). This would be desirable as it would smoothen the relations between the Judiciary and Executive, with fewer conflicts between them. There are also situations whereby RP will be in conflict with statutes. As such, the Crown would not be able to exercise the prerogative power due to the doctrine of Parliamentary Sovereignty. In AG v De Keysers Royal Hotel, the Crown used the Royal Hotel during the First World War and the hotel later claimed for compensation under Defence Act 1842. Although the Crown argued that no compensation should be paid since there was an RP to acquire any land of the subject during wartime, the court held that when the statutory power and prerogative power co-existed, statutory power would override that of prerogative. Similarly, in R v Secretary of State for the Home Department, ex parte Fire Brigades Union, the Criminal Injuries Compensation Scheme set up under Ministerial Prerogative powers was used instead of the Criminal Justice Act 1988, so as to save money by awarding less compensation. The court held that if there is a statutory scheme, it cannot be replaced by the RP. To prevent these scenarios from happening, Parliament has taken steps in recent years to incorporate some RP into statutes. For example, the Treasure Act 1996 states that the prerogative right of treasure trove has been abolished and replaced by this Act. The Human Rights Act 1998 protects citizens against arbitrary use of prerogatives, and the Fixed-Term Parliament Act 2011 has incorporated the RP of dissolution of Parliament. Hence with these recent developments, RP will be in less conflict with AOPs and more consistent with them, enabling them to be more certain and accessible to the public. There are naysayers of codifying the RP that argue that such an act would increase the rigidity of the process to achieve the intended result. Indeed, this is true as can be seen in the prerogative to declare war on other countries. For such a result, the government would need the operational flexibility and speed of deployment that the RP provides. By incorporating it into a statute, not only will the efficiency of the government be reduced, excess publicity that the AOP will bring would undermine the success of the operation. In addition, there will be situations where the government cannot await Parliamentary approval due to time constraints. Be that as it may, in practice, the government in modern times have looked for Parliament’s approval regarding the issue of war. In 2006, then Prime Minister Tony Blair, following his own vote over Iraq in 2003, acknowledged that he could not conceive of a situation in which a government is going to go to war except in the circumstances where immediate action is required without a full Parliamentary debate. The Iraq war vote was a significant precedent that Parliament should give its approval regarding such matters. Following which, Prime Minister David Cameron in 2011 held a Parliamentary debate on whether UK should establish a no-fly zone in Libya after the outbreak of military action. Lastly, in September 2013, a Parliamentary debate was called to discuss the possible military intervention in Syria after chemical weapons were allegedly used on civilians. By calling a vote, the government was ensuring continuing adherence to the practice that Parliament should have a say in such issues. Hence, even if codifying the RP does increase rigidity, the process of ensuring Parliament’s approval is already established. Some might feel that codifying the RP would be sacrificing UK history as they would be forgoing part of their culture which makes their unwritten constitution unique in today’s world (inclusive of New Zealand and Israel). Nevertheless, the RP is considered by many to be an outdated power and is such an important one that it should not bypass democratic representation.

The Las Vegas Hotel And Casino Industry Tourism Essay

The Las Vegas Hotel And Casino Industry Tourism Essay Commercial Casino Industry has been occurring in United States over 75 years since Nevada legalizing it. When Chef Wolfgang initiated to out fine dining restaurant in commercial casino, this is the beginning of food and beverage revolution in industry in 1992. In 1995, American Gaming Association was created. MGM Mirage acquired Mandalay Resort Group, Harrahs Entertainment Inc. and Caesar Entertainment in 2005 and the commercial casino industry started booming and other states started legalize opening casinos since then. The international gaming industry is expanding. Many U.S. casino companies expanded or planned to expand to other countries such as Macao, Korea, Taiwan and Singapore. The international casino industry tends to have rapidly growth as gross gaming revenue in Macao has been more than gross gaming revenue in Las Vegas strip since 2006. Know your enemy and know yourself, and in a hundred battles you will never be defeated. (Sun Tzus The Art of War Writings). This Chinese wisdom of warfare probably helps companies deploy a better strategy in many business situations. The MGM Mirage Inc. is the largest company in the Hotel and Casio industry by revenue in the U.S., but MGM financial statement showed that company bottom-line in debt. The company was facing bankruptcy code in the early 2010. In this project, the report had been organized and presented MGM Mirage Inc. or MGM Resorts International in 4W framework: (1) Who are we? (Company profile, Hotel and Casino industry profile), (2) Where are we? (Sophisticated tools in Management, Technology, Marketing, Financial and Accounting were used to analyze the company position with competitor in the industry.), (3)What are problems? (SWOT analysis) and (4) What are solutions? Who are we? : Know yourself MGM History The Beginning of Las Vegas Race: 2005: MGM Merged Mandalay Bay Group. MGM Profile in 2009 Organization Structure Company Strategy The MGM Mirage Inc. strategy is to generate sustainable, profitable growth by creating and maintaining competitive advantages and through the execution of our business plan, which is focused on: Owning, developing, operating and strategically investing in a strong portfolio of resorts; Operating our resorts in a manner that emphasizes the delivery of excellent customer service with the goal of maximizing revenue and profit; and Leveraging our strong brands and taking advantage of significant management experience and expertise. (Source: MGM Mirage 2010 Form 10-K) Current Operation As of 2009, the MGM Mirage reported that the company has completed control of 14 casino resorts and hold 50% of investment in 5 casino resorts. In addition, the MGM Mirage also owned 3 golf courses in Las Vegas, Mississippi and California.(Source: MGM Mirage 2010 Form 10-K) Casio Resort ( Completely owned) Nevada MGM Grand Las Vegas Mandalay Bay The Mirage Excalibur Monte Carlo Railroad Pass, Henderson Gold Strike, Jean Luxor Bellagio New York New York Circus Circus Las Vegas Other MGM Grand Detroit Beau Rivage , Biloxi, Mississippi Gold Strike Tunica ,Mississippi Casio Resort ( hold 50% in stock) Nevada City Center (Joint Venture with Dubai World) Circus Circus Reno Siler Legacy Other Borgata, Atlantic City, NJ Gran Victoia , Elgin, IL MGM Grand Macau, China Industry Analysis Industry Analysis process is an essential assessment tools for every company to deeply understand industry current trends and opportunities. In fact, company will gain a better position and achieve a competitive advantage when it truly understanding marketplace. In the complex marketplace, the U.S. government is categorized industry with 4-digits Standard Industrial Classification (SIC) system. In addition to SIC, the North American Industry Classification System (NAICS) is a new standard for the industry. The NAICS with 6-digits code contains more details than the SIC system. The purpose of SIC and NAICS are economy analysis. The MGM Mirage Inc. has been classified with SIC into three major categories: Hotels and Motels (SIC 7011), Coin-Operated Amusement Devices (SIC 7993) and Amusement and Recreation Services, Not Elsewhere Classified (SIC 7999). In addition, the MGM Mirage inc. also has been classified with NAICS into two categories: All Other Amusement and Recreation Industries and Hotels (except Casino Hotels) (713990) and Motels (721110). To thoroughly understand MGM Mirage Inc. marketplace, the hotel industry and casino industry had been analyzed. Hotels and Motels Industry (SIC 7011) The U.S. government defined a company in Hotels and Motels Industry as Commercial establishments, known to the public as hotels, motor hotels, motels, or tourist courts, primarily engaged in providing lodging, or lodging and meals, for the general public. Hotels which are operated by membership organizations and open to the general public are included in this industry. Hotels operated by organizations for their members only are classified in Industry 7041. Apartment hotels are classified in Real Estate, Industry 6513; rooming and boarding houses are classified in Industry 7021; and sporting and recreational camps are classified in Industry 7032. Recession impacts hotel industry In May 2010, Standard Poors industry report stated the hotel industry is still in an unstable condition. The industry will require a longer period to recover from the 2008 recession. Currently, the industry is operating in a difficult situation. The hotel industry is facing drastic competition that forces hotel businesses to lower room rates, which in turn results in lower profit. Figure 1: Hotel Industry Fact Sheet 2001 Forecast 2011 The data from Smith Travel Research (STR) Inc. indicated that on average the hotel industry has lost its Revenue Per Available Room (RevPAR) since 2008. The 2008 recession has also brought the hotel occupancy rate down from 60% to 55%. In addition, average daily roommate also dropped significantly 8.8% in 2009. Moreover, room demand dropped 6% in 2009. In contrast, the supply of rooms rose 3.2% in 2009 (refer to figure1). While the U.S. government is making their way out from 2008 recession, SPs forecasted that the hotel industry will not return to the same pre-recession level for the next eight to ten years. Figure 2: Percent Change in Room Supply and Demand in the U.S. from 1989 April 2009 Real GDP helps the hotel industry in predicting room demand In the hotel industry, a high accuracy in room demand elasticity estimation provides CEO with essential information for a long term planning and deploying strategies. In 2009, the research by Dr. Hanson from Global Hospitality Group Hospitality Lawyers shows approximately a 1-to-1 relationship that holds between the U.S. Real GDP and room demand until the 2001 economic crisis. The real Gross Domestic Product (GDP) is the total output of goods and services produced in a country and adjusted for priced change. The demand is more elastic when the greater the proportion of income spent on the good. After the 2001 recession, the demand retract and continue to grow in a slower pace when compare with the real GDP. The GDP is increasing 4 times faster than the room demand does. The 5 factors that researcher believes that might have an influence GDP and room demand relationship are: Long-term deterioration in consumer confidence, Higher consumer saving rate, consumers trying to recover lost investment, new pattern of behavior and proposed levels of tax increase affecting disposable income. Moreover, in the 2008 recession, the researcher also believes that the recession might create an additional snap back for room demand. Figure 3: The relationship between GDP and Room Demand U.S. Business and group travel The hotel industry profitability can be influenced by a demand from business travel. According to a member survey, the Association of Corporate Travel Executives (ACTE) reports hotel expense represents, on average, 40% of all business travel expense. In addition, American Express stated that airfare will increase from 2% to 10% in 2011, and hotel rates will increase 1% to 10% (Paurowski, 2010). The survey also indicated that 35% of its member strongly considered optimizing hotel expense in 2011 and 50% of its member expressed concern regard increasing in expenses. Passenger Name Record (PNR) in Computer Reservation System (CRS) showed that cooperate travelers have shifted booking methods from Travel Management Companies (TMCs) to Online Travel Agency (OTA). In fact, 30% of its members stated that online hotel rates offered are lower than negotiated rates. The complementary items that are preferred by the majority corporate travelers are: complementary cocktails, free WiFi-internet ac cess and comfort. In conclusion, the demand for business and group travel will likely be for cheaper rooms at lower rates with free complementary. (Michael Boult, 2010). Domestic and international travelers Shifts in airline schedules and passenger booking have a direct impact on hotel occupancy. According to the data from Air Transport Association (ATA) 2010 annual report, the static in figure 3 shows that domestic capacity had a declining trend since 2000, and the data also showed that passenger enplaned has dropped significantly from 743 million passengers in 2008 to 703 million in 2009 reflecting a 5.3% decrease of airline industry capacity. In fact, profit margin in the airline industry has been on the negative side. Airliners cut back routes and canceled destinations. For international travelers, The U.S. Department of Commerce (DOC) and Office of Travel and Tourism Industries (OTTI) expect the industry growth in 2010 and gradual increase to approximately 6-9% through 2015. Five countries, excluding Canada and Mexico, that rank highest in number of visitors to the U.S. in 2010 by volume are: China (40%), Brazil (35%), Korea (35%), Hong Kong (27%), New Zealand (24%) and Australia (19%). A weakening in U.S. currency helps the hotel industry by stimulating the demand from international travelers. Figure 3: Domestic Demand Trend, Profitability among Airline, Passenger Yield Trend Medical tourism -a little hope for the hotel industry In the economic downturn, hotel industry needs a stimulant plan to boot-up its occupancy rate. In 2009, Reuters Health section provided some interesting facts about medical tourism in the U.S. The report indicated that U.S. health providers have lost 650,000 patients to hospital oversea such as Thailand, India, and Singapore. In addition, the health providers are predicted to lose as much as $67.7 billion in revenue in 2010. Oscar Goodman, Mayor of Las Vegas, foresee the opportunity for the hotel industry in Las Vegas. Mayor encourages a local business to support the idea of medial tourism. The medical tourism will be an alternative business in the area, the national public radio reported. Casio Industry Casinos are the largest revenue generator in the gambling industry. The industry provided approximately 350,000 jobs in the U.S. market. The American Gaming Association and the National Indian Gaming Association (NIGA) are the main organizations in the U.S. casino industry. The AGA encourages its members and their employee to be aligned with updated law and regulations. Moreover, AGA is a realizable source for a gaming industry providing gaming history, educational program, and statistic data on the Casino industry. In addition, the NIGA under the Indian Gaming Regulatory Act has provided Native Americans opportunities to legally run casinos. U.S. casino trends The casino industry has been hard-hit by the recession. According to the United States department of labor, the Mass Layoff statistics (MLS) program showed that the hotel-casino industry eliminated 13,000 jobs in 2008 (Labor, 2010). The revenue trend in the casino industry has been on a downturn for the last two consecutive years. The SP expected a slow recovery from the casino industry. Las Vegas, Nevada As of 2009, the American Gaming Association reported that Las Vegas with $5.55 billion in revenue was a dominant U.S. market. According to Las Vegas Convention and Visitors Authority (LVCVA), the statistic in figure 5 showed a 2.4% increase in the number of visitors from 2009. The Las Vegas Strip gaming revenue was increased by 4.3%, but the downtown area gaming revenue was decreased by -7.3% from 2009. In 2009, the 14% unemployment rate in the state Nevada plummeted the economic trail. On a carryover impact from the economic crisis in 2008, the number of attendees at conventions, and a number of scheduled conventions and number of meetings held remained on the decline with decreases of -1.1% and -6.7% respectively. According to the Las Vegas Visitor Profile, Market Segment reported by LVCVA (2009) that 76% of Casino guests were most likely to be traveling in a party of two and average stay in Las Vegas is 4 nights. Casino guests on LVCVA survey stated that 87% of visitors called the hotel-casino directly to book their accommodation. In 2010, SPs industry report estimated casino revenue on the Strip to be 35%-45% of total revenues, and the revenue from hotel rooms was 20-30% of the total revenue. A total enplaned and deplaned air passenger continued to decline. The number of air travelers accounts for 42% of all visitors. (LVCVA visitor profile: ir visitor version). The SPs report indicated strong growth from Las Vegas. Figure 4: U.S. Casino Industry Gaming Revenue Figure 5: Las Vegas Convention and Visitor Authority (LVCVA) : Executive Summary Atlantic City, New Jersey The Atlantic City is a second large of the U.S. casino marketplace. The static in figure 4 shows that casinos in the area have been losing revenue -5.7%, -7.6% and 13.2% in three consecutive years. According to SP, casinos in Atlantic City are facing heavily competition from New York and Pennsylvania. Macau, China: New Era of Asia Gold rush Macau is a special administrative region of China. The CIA The World Factbook reported that, in 2006, Macaus gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. The Macau market attracted many casino operators from Las Vegas to come and establish a new home-based outside the U.S. In 2010, the profit in Macau market increased 9.7% in revenue from its loss in 2009. The gaming industry in Macau was expected to rise, but, SP reported a concern about the room surplus of 40% in 2011 and 2012. In the long-term, SP still believes that the Macau gaming industry will generate a significant profit for China. Singapore: A hidden dragon Singapore is the one of the most strategic locations in South-East Asia. According to Economy Watch and World Bank, Singapore is considered to be a very attractive country for new business. Sources in the Wall Street Journal on October 7, 2010 reported that the Marina Bay Sands project is a 8-billion dollar casino in Singapore, known to be the cleanest city in the world. The casino includes three 50-story structure with approximately 2,500 rooms; a casino, retail stores, dining and 800,000 square feet entertainment complex. The SP 2010 industry report predicted that the top five markets for Singapore casinos are: Indonesia, China, Australia, India and Malaysia. In addition, the Marina Bay Sands should have no effect on Macau market because the hotel presents a more family-orientated appeal. Legal and Regulation Internet/Online gambling Online gambling is illegal in the U.S. as of November, 2010. Internet Gambling Regulation, Consumer Protection, and Enforcement Act (H.R. 2266)  was introduced to congress in May 2009 by Frank, Barney  (Rep). The bill is aimed to Unlawful Internet Gambling Enforcement Act of 2006, which prohibits internet gambling operators from receiving money related to any online gambling that violates State or Federal law (Frank, 2010). Online gambling is also on a serious debate among AGA members regarding a safety and government regulation. The concerns regarding an online gambling are a security technology such as firewall to protect million online users. Summary Key Fact from Industry Analysis Room demand dropped because economic recession. Occupancy rate dropped because dropped in demand and increasing room surplus. Real GDP could be used as atool for the hotel industry to future demand. Business Travel booking trends changed from Travel agency to online travel agency. China is a number one inbound visitor by volume from oversea. Medical tourism could be an alternative route for simulating demand. Gaming on Las Vegas Strip continues generating profit. Atlantic City market for casino is not pleasant after loss in profit of 3 consecutive years. Macau is growing and generated more revenue than Las Vegas Strip. Singapore could be a new growing casino market in South-East Asia. Legalize an online gambling is an ongoing process. Casino Market: Oligopoly Market Competition In 2009, the casinos industry had revenue in total of $US 21.8 billion. To determine an economic competitive type of market in the industry, the company uses a four-firm concentration ratio as the indicator. The ratio is the percentage of total industry sales made by the four largest firms (Fig. 4). The four-firm ratio for the casinos industry is approximately 70%, which had created an oligopoly form of market competition. In oligopoly, one firm decision can have a direct influence on demand, price, and profit of competitor in the industry. Figure 5: Companies in the casino industry by revenue Furthermore, external assessment of the industry is a critical process for management in decision making. The Porters Five-Forces Model, competitive analysis tool, has been utilized for in-depth industry analysis. The model analysis is provided five perspectives in assessing the industry: Rivalry among competing firms, Potential entry of new competitor, Potential development of substitute products, Bargaining power of suppliers, and Bargaining power of consumers. Porters Five-Forces Model Analysis Rivalry among existing competitors: MGM : Rivalry among existing competitors : HIGH Same-size competitors High exit barrier Indifferent in product and service among competitors Table x: Threat of existing competitors The competitive atmosphere in hotel industry is high.   There are a lot of competitors in industry.   Furthermore, it seems that competitors compete in same dimension because in commercial casino industry, customers are not much diverse. Therefore, players in this industry found it hard to target different customers with different needs   Ã‚  Ã‚  Ã‚  Ã‚   There are a lot of competitors with equal power and size.   Ã‚  Ã‚  Ã‚  Ã‚   Exit barrier in commercial casino industry is high because a company invests huge amount of money, especially, building cost. Even a company wants to exit from the industry, sometimes it force to stay in because exit costs are high.   Ã‚  Ã‚  Ã‚  Ã‚   Product and service in commercial casino industry are identical. Moreover, there is no switching cost for buyers. Thus, competitor might cut price to attract buyers.   Ã‚  Ã‚  Ã‚  Ã‚   Fixed costs are high. In order to compete in hotel industry, a casino manager adopts revenue management. The process allows buyers to stay in same type of room in different price. Even a hotels products and service are not rapidly become outdated but competitive atmosphere in commercial casino industry is hot, therefore, companies cannot make high profit from this industry. Threat of new entrants: The threat of new entrants for hotel and motels industry is low. The industry has significant barriers to entry which include: MGM : Threat of new entrants : LOW Supply-side economies of scale Demand-side benefits of scale Customers switching costs Capital requirements Restrictive government policy Position advantages independent of size Unequal access to distribution channels Table x: Threat of new entrants Supply-side economies of scale:   In commercial casino industry these economies hardly appear. Even a company built more rooms or more recreations in its casino, these economies will not appear. Moreover, the company has to carry more cost, more maintenance cost and more employees cost. Demand-side benefits of scale (network effects): These benefits occur when the numbers of buyer patronize the company. However, these benefits might not occur in commercial casino industry. In commercial casino industry, a company will find advantages in location, facilities and characteristics of personal working in direct contract with customers. Therefore, having a lot of customers patronize a company will not provide huge demand-side benefits of scale. Customers switching costs: In commercial casino industry, when customers purchase service from a casino, it is one time use. Therefore, there is no switching cost. Capital requirements: In order to enter commercial casino industry, a company needs to finance huge budget and the industry return is not attractive. Thus this industry has high barrier. Position advantages independent of size: These advantages are not depends on a companys size, incumbents can have competitive advantages that not available to competitors. These advantages in commercial casino industry can stem from locations, brand identities and service. Unequal access to distribution channels: It is not hard to establish or find distribution channels in commercial casino industry. A company could use agents or let customer books rooms via its websites. Restrictive government policy: There might be some restriction related to commercial industry such in some area government do not allow a company to build a building that higher than 2 floors or in some countries, a company has to has citizens hold more than half of a companys shares to operate in that country. In U.S., commercial casino industry is the most regulated and monitored industry. The threat of substitutes: MGM : Threat of substitutes : HIGH Competitor Table x: Threat of substitutes There are some substitutes for commercial casino such as hostels, apartments or houses. Customers can stay in hostel, apartment or houses and go to gaming or using recreation facilities at casinos. If buyers concern convenience, they might prefer casino. Because they will have maids clean their room and casinos always locate in a convenience location. If buyers concerns price, they might stay in hostel. However, if buyers concern privacy, they might prefer house.   Ã‚  Ã‚  Ã‚  Ã‚   There is no cost of switching to substitute. Buyers can change to substitutes anytime if they would like. Hostels, apartments and house can be substitutes for casinos. They perform similar products and service to casinos, if you concern only hospitality part. However, there are some differences which made substitutes have huge different from hotels. Buyers have to determine trade-off between hotels and substitutes. In this industry, the threat of substitutes is not high because substitutes have too many differences in facilities and service from casinos. Thus, industrys profitability is not suffered from substitutes. The power of suppliers: If suppliers have power over a company, suppliers might set its price higher, limit quality of service and shift its cost to other parties. In commercial casino industry, a company uses wide range of different suppliers such as supplier for construction, supplier for food and beverages and supplier for hotel equipment. There is almost no monopoly in hotel suppliers. Moreover, only a few supplies that have switching cost such as securities equipment and suppliers did not differentiate their products. The company has to differentiate itself by choosing good location, providing well-maintenance facilities and providing supreme service. Furthermore, the company can easily find substitute suppliers. Therefore, the power of suppliers in commercial casino industry is low. The power of buyers: MGM : The Power of Buyer : Table x: The power of buyer   Ã‚  Ã‚  Ã‚  Ã‚   There are various customers in commercial casino industry. However, there are some buyers that have ability to negotiate such as group tour.   Ã‚  Ã‚  Ã‚  Ã‚   Products and service in commercial casino industry are not much different. If customers find that a hotel that they always stay in is full, they have to stay in other hotel. They have to purchase products and service in some hotel anyway.   Ã‚  Ã‚  Ã‚  Ã‚   Buyers have no switch cost. If buyers want to change from a hotel to a hotel, they can just check-in to another hotel without any switching cost.   Ã‚  Ã‚  Ã‚  Ã‚   Buyers cannot produce industrys product if buyers found that a hotel is too profitable. Buyers can switch to other hotels but they cannot produce it by their selves.   Ã‚  Ã‚  Ã‚  Ã‚   In commercial casino industry, buyers do not stick with brands. Buyers might concerns about quality of product and service. If they find another casino that cheaper but quality and facility are same, they will switch to another casino. In sum, in commercial casino industry, buyers are relatively price sensitive. From analysis given above, buyers in commercial casino industry have high power and seem to be price sensitive. They can press companies to lower their price and can ask for more quality and service. Financial and Accounting Analysis The financial information was published annually to external and internal users. MGM Mirage Inc. financial statements had been analyzed using financial ratio analysis and information in management discussion. The median number of industry ratio in 2009 is used in this report. By the nature of hotel business, MGM contains a high fix-cost in normal business operation and profits are driven by tourism and business travel demand. MGM requires a large capital to run its hotels and casinos. In 2010, MGM is in process of development a City Center, a capital intensive driven project. The delayed of City Center project has enormous impact on MGM financial statement. Liquidity and Financial Position Liquidity Ratios Industry 2009 2008 2007 2006 2005 Current Ratio 1.1 1.28 0.51 0.68 0.92 0.66 Quick Ratio 0.8 1.02 0.2 0.48 0.5 0.48 Credit Risk: Facing Bankruptcy As of December 31, 2009, MGM is in a weak financial position because of its indebtedness. MGM with credit rating of CCC+ operated the business with 39% on the long-term debt. The management team declared unpleasant statement about the $1.1 billion senior credit facility debt which might be defaulted on maturity date in 2010. The management suggests that MGM must extent the payback period by negotiating with their creditors. Also, management has predicted that future revenue from operation and tax refunds would help reducing MGM debt. The current and quick ratio indicated that MGM has had insufficient fund to operate its casino since 2005. With the ratio less than 1 and below the industry average in both current ratio and quick ratio, MGM has been operated on the line of bankruptcy if the company defaults on its debt. Revenue base and mix MGM primary source of revenue came from Las Vegas Strip. As December 31, 2009, the majority of MGM revenue came from three sources: casino (44%), hotel room (23%), and food beverage (23%). Casino revenue dropped 12% from 2008 and it had been on decline trends since 2007. In 2009 MGM financial statement, revenue from casino had been divided into three sub-categories: Table games (36% of total casino revenue), Slots (60% of total casino revenue), and Other revenue. The table game revenue decreased 11%, even though there is 33% increases in demand for baccarat. Sustainability of revenues and earning As of December 2009, MGM **Reasonable Analysis *focus on MDA *Risk and Factor * Note Analyzing financial statement Accounting item to review Cash Flow Profitability ratios MGM profitability ratios are negative in 2010 and 2009 for some ratios. ROA in both 2009 and 2010 are negative. We can break ROA to net profit margin multiply total assets turnover to deepen our analyzing.   Assets turnover ratio shows MGMs ability to use assets generate revenues. MGMs assets turnover ratio decreases from 2007 to 2009. Even this ratio does not decrease much during 3 year period, it made ROA go down. The main factor that has impact on ROA is net profit margin. The MGM has very low net profit margin since 2008. MGMs bad signal shows since 2008. After its net profit margin ratio plunge to -11.86% in 2008 and -21.61% in 2009 which a major factor lowing ROA. From analyzing ROA, we can see that MGM has a problem with maintaining its profit margin. MGMs revenues in 2008 are not much different from 2007, however, MGM cannot control operating expenses, operating expenses in 2007 exceeds revenues. In 2009 MGM revenues decreases by 17%, further, MGMs ability to control its op erating expense decreased. MGMs operating expenses in 2009 is 114.65% from revenues. The major increase in operating expenses in 2008 and 2009 is property transactions. MGMs ability to fulfill its short term obligation is getting better in 2009. Both quick and current ratios go up. The reason both quick and current ratios increase because in 2009 MGM carries more cash. However, MGM debt management ratios worsen. Long term debt to equity ratio increases from 2007 to 2009 results increase in total debt to equity ratio. These ratio shows MGM has larger portion of debt compare to equity. Even MGM carries more long term debt recently; MGM has interest coverage ratio high enough to pay back its interest. But this ratio trend increase in recent year. Hotel operating statistics Asset values Balance sheet ratios Book Value Off-balance-sheet commitments or liabilities Valuation measures Leverage ratios Debt Management 2009 2008 2007 2006 2005 LT Debt to Equity 3.35 3.12 1.84 3.38 3.82 Industry Ratio Total Debt to Equity 3.63 3.39 1.84 3.38 3.82 Industry Ratio Interest Coverage 1.66 2.06 1.95 1.93 Industry Ratio Activity ratios Asset Management 2009 2008 2007 2006